Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1893-08-17
PRESIDENTS MESSAGE.
HIS VIEWS ON THE PRESENT FlNAN-
CIAL SITUATION.

Believes To BE Responsible for the
Trouble and Earnestly Recommends Its
RepeaI-He Refers Incidentally TO the
Tariff but Considers the FinaD- ial Cues
tiOn Paramount.
WASHINGTON. Aug. S.-President Cleve-
lands message to congress in extra session
was read in both houses and is as followsi
To TIE CONGRESS OF THE UNITED STATEsi
The existence Of an alarming and extraordi-
nary business situation, involving the welfare
and prosperity Of all our people, has con-
strained me T. call together in extra session
the peoples Representatives in con
gress. TO the end that through
a wise and patriotic exercise OF
the legislative duty with which they
solely are charged. present evils may be miti-
gated and dangers threatening the future may
be ayerted.
Our unfortunate financial plight is not the
result of untoward events nor of conditions re-
lated to our natural resources; nor is it trace
able to any Of the Affections which frequently
check national growth and prosper
ity. With plenteOus crops with abund
ant promise of remuneratlve produc-
ton and manufacture, with unusual
invitation to safe investment and with salts
factory assurance to business enterprise, sud.
denly financial distrust and fear have sprung
up on every side Numerous moneyed institu-
lions have suspended because abundant assets
were not Immediately available to meet the de-
mands Of frightened depositors. Surviving
corporations and individuals are content to
keep in hand the money they are usually anx.
ious to loan, and those engaged in legitimate
business are surprised TO find that the securities
they offer for loans, though heretofore salts
factory, are no longer accepted. Values sup
posed to be fixed are fast becoming conjectur-
al, and loss and failure have invaded every
/ branch of business
! believe these things are principally charge
able to congressional legislation touching the
purchase and coinage of silver by the general
government This legislation is embodied in
statute passed on the lith day of
July, 1890 which was the elimination OF much
agitation on the subject involved, and which
may be considered truce, after long struggle
between the advocates Of free silver coinage
and those intending to be more conservative
Undoubtedly tine monthly purchases by the
government of 100000 ounces of silver en-
forced under hat statute, were regarded by
those interested in silver production as a Ger
tain guaranty OF its increase in price The
result, however, has been entirely different, for
immediately following "a spasmOdic and slight
rise, the price of silver began 10 fail after the
passage Of the act, and has since reached the
lowest point ever known. This disappointing
result has led TO renewed and persistent effort
in the direction Of free silver coinage Mean
while not only are the evil effects Of the OPP.
GRAFTON Of the present law constantly ac.
cumulatiug, but the result to which its execu-
ton must inevitably lead is becoming palpable
TO all who give the least heed to financial
subjects.
This law provides that IN payment for the
100000 ounces Of silver bullion which the sec.
rotary Of the treasury Is commanded to pur
chase monthly there shah be issued treasury
notes redeemable on demand in gold or silver
coin at the discretion Of the secretary Of the
treasury and that said notes may be reissued
IL IS, however declared in the act to be the
established policy Of the United states to
maintain the two metals on parity with
each other upon the present legal
ratio or such ratio as may be provided by
law This declaration so controls the
action of the secretary Of the treasury as to
prevent his exercising the discretion nominal
Is yestedn him. ii by such action the parity
I between gold and silver may be disturbed
Manifestly a refusal by the secretary to pay
these treasury notes ia gold, II demanded
would necessarily result ia their discredit and
depreciation as obligations payable only in sill
yer. and would destroy the parity between
the two metals by establishing a discrimina-
tion Ia favor Of gold
W to the 18th day Of July, 1903, these notes
had been issued III payment Of silver bullion
purchases 20 the amount OF more than forty.
seven millions IF dollars While all but q very
small quantity Of this bullion remains uncofned
{ W.
of the notes given in its purchase have been
paid in gold This is illustrated by the state
ment that between the lst day Of May 1892 and
the 18th day Of July. 1893 The notes Of this kind
issued in payment for silver bullion amounted
10 little more than fifty four millions of dollars
and that during the same period about forty
nine millions of dollars were paid by the treas.
ury in gold for tho redemption, Of such notes
The policy necessarily adopted Of paying these
notes in gold has not spared the gold reserve Of
SlDWneU long ago set aside by the govern
ment for the redemption Of other notes. for
this fund has already been subjected to the
+ payment Of new obligations amounting to
about one hundred and fifty millions Of dollars
on account Of silver purchases, and has as a
consequence for the first time since its erea-
tion, been eucroached upon
We have thus made the depletion Of our gold
easy, and have tempted other and more APP
preciatiye nations 70 add it TO thar stock
That the opportunity we have offered has not
been neglected, is shown by the largo amounts
Of gold which have been recently drawn from
our treasury and exported 10 increase the
financial strength Of foreign nations. The ex-
Cess of exports of gold over its imports for
the year ending June 50. 1898 amounted to
more than eighty -seven and half millions of
dollars. Between the LIST day Of July l691
and the 18th day ot July, 1888 the gold coin
and bullion ia our treasury de
creased more than one hundred and thirty.
two millions Of dollars, while during the same
period the silver coin and bullion I'll the ,reas.
ury increased more than one hundred and
forty seven millions Of dollars Unless govern
meut bonds Hre be constantly issued and sold
70 repleuish our exhausted gold only 70 be
again exhausted, 1t is apparent that the opera
tiou Of tho silver purchase law now in force
leads iii the direction &c the entire substitution
u silver f1r gold Id the government treasury.
and that thls must he followed by the payment
pt all lsgXeVYuHnE ahlirafiaDS Aaprpt-iafp ri