The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1893-08-25
THE PRESIDENTS MESSAGE.
To THE CONGRESS OF THE UNITE

The existence of an alarming and ex-
traordinary business situation involving
the welfare and prosperity of all our
people has constrained me to call to-
gether in extra session the peoples
representatives in Congress to the end,
that through wise and patriotic exer
else of the legislative duty with which
they solely are charged, present evils
may be mltgated and dangers threaten
ing the future may be averted Our
unfortunate financial plight is not the
result of untoward events, nor OF con-
ditions related to our national resources,
nor is it traceable to any of the Affections
which frequently check national growth
and prosperity. With plenteous crops,
with abundant promise of remuneratlve
production and manufacture, with un
usual invitations to safe investment,
and with satisfactory assurance to bust
ness enterprise, suddenly hnanc al dis
trust and fear have sprung up on every
side; numerous monetary institutions
have suspended, because abundant
assets were not Immediately available
to meet the demands of frightened
depositors surviving corporations and
individuals are content to keep in
hand the money they are usually anx
ious tol oan, and those engaged in legt-
innate business are surprised to find
that the securities they offer for loans,
though heretofore satisfactory, are no
longer accepted. Values supposed to
be fixed are fast becoming conjectura
and loss and failure have involved every
branch of business. believe these
things are principally ch,rgeable to
congressional legislation touching the
purchase and coinage of silver by the
general Government. This legislation
Is embodied in a statute passed on the
18th day Of July, 1890, which was the
elimination of much agitation on the
subject involved, and which may BIZ
considered truce after long struggle
between the advocates of free silver
coinage and those intending to Be
more conservative. Undoubtedly the
monthly purchases by the Government
of four million and five hundred thou
sand ounces of silver, enforced under
statute, were regarded by those inter
ested in silver production as certain
guaranty of its increase in price.
The result has been entirely differ
ent; for, Immediately following spas
modic and slight rise, the price of
silver began to fall after the passage of
the act, and has since reached the low
est point ever known. This disappoint
ing result has led to renewed and
persistent effort in the direction Of free
silver coinage. Meanwhile, not only
are the evil effects Of the operation of
the present law constantly accumulat
ing, but the result to which its execution
must inevitably lead is becoming palp
able to all who give the least heed to
financial subjects. This law provides
that in payment for the four million
and five hundred thousand ounces of
silver bullion which the Secretary of the
Treasury is commanded to purchase
monthly, there shall be issueo treasury
notes redeemable on demand in gold
or silver coin, al the discretion of the
Secretary of the Treasury, and that
notes may be reissued. 1t is, however,
declared in the act to be the said es
tablished policy of the United States
to maintain the two metals on a 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 nominally vested in him
if by such action the parity between
gold and silver may be disturbed.
Manifestly a refusal by the Secretary
to pay these treasury notes in gold, If
demanded, would necessarily result In
their dscredit and depreciation as
obligations payable only in silver, and
would destroy the parity between the
two metals by establishing dsscrimi-
nation in favor of gold. Up to the
18th day of July, 1898, these notes
had been issued in payment of silver
bullion purchases to the amount ot
more than one hundred and forty. seven
millions of dollars, while all but very
small quantity Of this bullion remains
uncoined and without usefulness in the
treasury. Many Of the notes gwen in
its purchase have been paid in gold.
This is illustrated by the statement
that between the Ist day of May, 1899,
and the 18th day of July, 1898, the
notes of this kind issued in payment
for silver bullion amounted to little
more than $4,000, 900, and that during
the same period about $4,000 900
were paid by the treasury In gold for
the redemption of such notes.
The policy necessarily adopted Of
paying these notes in gold has not
spared the gold reserve Of the $780,
900, 1000, long ago set aside by the
Government for the redemption of
other notes, for this fund has already
been subjected to the payment OF new
obligations amounting to about $3.50,
900, 900 on account Of silver purchases;
and as a consequence for the first time
since its creation been encroached
upon. We have thus made depletion
of our gold easy, and have tempted
other and more appreciative nations 10
Il hot fEA On