The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-09
AN IMMEDIATE REPEAL
- PRESIDENT CIETELAND's RE
c0wMENDATI0N TO CONGRESS.
The sherman Law Il Detrimental to Sound
and Stable Currency-The wRge
Earucr Is to Bo Protected.
wAsHNGToN. d. G. August S. 1893.

The existence Of an alarming AMI ex-
,r,ordinary business situation. involving
the welfare aud prosperity Of all our
reopre. has constrained me to call to-
eethcr Boz extra session the peoples repre-
sentauyes in Congress. 20 tie end that
,brou-h a wise and patriotic exercise OF
the legislative duty with which they sole
y are charged. present evils may be
n.u.ated and dangers threatening the
future may Doe averted
our unfortunate financial plight Is not
tte result OF mtoW ara events nor OF con-
Htors related 90 our natural resources,
tor ls Il traceahlo 90 any OF the atlhcrous
which frequently check national growth
and prosperity. with pienteous crops,
with abundant promise Of remunerative
PRODUCTION and manufacture, with un-
usual invitation to safe investment and
with satisfactory assurance 10 business
enterprise suddenly financial distrust far
and near has sprung up on every slde.
Numerous moncycd institutions have sus-
rended because abundant assets were not
Immediately available TO meet the de-
T1ands OF frightened depositOrs. Surviv-
ing corporations ana individuals are con-
tent 10 keep IN hand the money they are
usually anxious 20 loan. and those en-
caged in legitimate business are sur
prised 20 find that the securities they
ofter for loans, though heretofore salts
factory are no longer accepted. Values
supposed 90 be hXed are fast becoming
coniectural and loss and failure have
invaded every branch of business
Caused by Congregational Legislation.
/ believe these things are principally
chargeahle 10 Congressional legislation
touching the purchase and coinage OF
silver by the General Government.
This legislation Is embodied in statute
passed on the 14th day Of July. 1890 which
was the elimination Of much agitation on
the subject involved. and which may be
considered a truce. after long struggle,
between the advocates Of free silver coin
age and those intending to be more con-
servauye.
Undoubtedly the monthly purchases by
the Government OF four million and five
hundred thousand ounces OF silver, en-
forced under that statute, were regarded
by those interested in silver production as
q certain guaranty of its Increase IN
price. The result, however has been
entirely different for Immediately fol-
loving a sIasmodic and slight rise, the
price of silver began TO fall after the pas
sage OF the act, and has since reached
tho lowest point ever known. This dis
Amounting result has led 10 renewed and
persistent effort in the direction Of free
silver coinage.
fects OF tie operation OF the present law
constantly accumuating but the result
20 which its execution must inevitably
Lad Is becoming palpable 10 all who
give the least heed 20 financial subjects.
Unable % Use Discretion.
This law provides that In payment for
the four million and 1--WE hundred thou
elud ounces of silver bullion which the
Secretary of the Treasury is commanded
+, purchase monthly. there shall be is
f,.d Treasury notes redeemablc on de-
raud in po'l or silver coin, at the dis-
creuon of te Secretary of the Treasury
aul chat said notes may Doe Teissued. II
f. however. declared in the act TO be
"the established policy Of the United
States 90 maintain the two metals on
parity with each other upon the present
legal ratio or such ratio as may be pro-
Yi4,d hy law" inis declaration so CON
trolls the action Of the Secretary OF the
Treasury as t0 prevent his exercising the
discretion nominally vested I'm him, II by
such action the parity between gold and
silver may be disturbed
Nianifestlv n refusal by the Secretary
o. pay these Treasury notes il demanded
would necessarily result in their dis
credit and depreciation If payable only In
silver and would destroy the parity be
tween the two metals by establishing a
discrimination I'm favor Of gold.
Notes paid In Gold.
I'D 10 the 18th day Of July 1893, these
notes had been issued IN payment of
silver bullion purchases, 20 the amount
Of more than one hundred and forty
seven millions Of dollars While all but
& very small quantity Of this bullion
remains uucoined and without usefulness
in the Treasury. many of the notes given
I'm its purchase have been paid IA Bold.
This is illustrated by the statement thar
between the 1st day of May, 1872 ana
the 18th day Of July, 1898, the notes OF
this kind issued In payment Tor SILVER
bullion amounted 10 little more than
fftv-four millions OF dollars, and that
during the same period about fOrty-nlne
millions OF dollars were paid by the
Treasury gold FOR the redemption OF
such notes.
The policy necessarily adopted of pay
ing these notes I'm gold has not spared the
gold reserve of one hundred millions OF
dollars long ago set aside by the Gov
rrment for the redemption OF othcr noies,
for this fund has already been subject
10 the payment Of new obligations
, Amounting to about one hundred and fifty
millions Of dollars on account OF silver
purchases. and has. as consequence, Tor
the first time since its creation been en-
croached upon.
The Export of Gold.
We have thus made the depletion OF
our gold easy, and have tempted other
and more az TrccidiNc HaN"IS 10 "un
f. 10 their stock. That the opportunity
we have offered has not been neg
ls.fed is shown by the large amounts OF
rll which have been recently drawn
from our Treasury and exported 10 In
crease the financial strength Of foreign
lal9ns. The excess OF exports Of gold
t,,r us imports for the year ending June
81 lse3 amounted TO more ;han eighty
Seven and half millions Of dollars.
btWeen the first day # July 1890, and
o. fifteenth day OF July 1898. the gold
coin and bullion i'm our Treasury decreas-
"a more than one hundred and thirty-two
ruous ot dollars. while during the same
period the silver cCin and bullion in the
Treasury htrefsed more than one hun
dred aud forty-seven millions OF dollars.
Unless government bonds are 10 be con-
sanly issued ana sold to replenush our
exhausted gold. only 10 be again eX- |
lauatcd. 10 is apparent that the opera |
i9n of the silver purchase law now In |
force leads In the direction II the entire |
Substitution Of silver for the gold in the |
Government Treasury, and that this must /
be followed by the payment OF all gov |
trnufnt Obligations Ia deprecated silver |
No Longer on Parity.
Al this stage gold and silver must part /
the faQ |