The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-08-08
President Cleveland Sub
mits His Views to the
House and Senate.
REPEAL THE SHERMA AN LAW.
Silver Legislation the Cause of the
Present Crisis Tariff Reform
Urgent
Wage Farmers Rights to legislation
Which Will Give Them
Full Justice.

WASHINGTON. Aug. s. 1898 The fol-
lowing is the full text of Presidedt Clevs-
lands message sent to Congress at noon
today
To the Congress of the Uiltted States:
The existence of an alarming aud ex-
traordinary business situation. involving
the welfare and prosperity of our people,
has constrained me to call together in
extra session the peoples representatives
in Congress, to the end that through a
wise aud pa triotic exercise of the legisla-
tive duty with which they solely are
charged. present evils may be mitigated
and dangers threatening the future may
be averted.
Our unfortunate financial plight Is not
the result of untoward events nor Of con-
ditions related to our natural resources;
which frequently check national growth
and prosperity. With plenteous crops.
with abundant promise OF remunera-
tive production and manufacture,
with unusual invitation to safe
investment and with satisfactory assur-
ance TO business enterprise, suddenly d.
nancial distrust aud fear have sprung up
on every side. Numerous moneyed in
stituttons have suspended because abun-
dant assets are not Immediately available
10 meet the demands OF frightened depos-
itors. Surviving corporations and indi-
viduals are content to keep In hand the
money they are usually anxious to loan,
and those engaged in legitimate busin ess
are surprised 70 f1nd that the securities
they offer for loans, though heretofore
satisfactory, are no longer accepted.
Values supposed to be fixed ara fast be-
coming conjsctural, and loss and failure
have involved every branch OF business.
believe these things are principally
charRable to Congressional legislat ion
touching the purchase and coinage Of
silver by the general governments.
This legislation is embodied in q statute
passed on the l4th day of July, 1890,
winch was the elimination of mucn
agitation on the subject involved, aud
which may be considered truce, after a
lorg struggle, between the advocates of
free silver coinage and those Intending
10 be more conservative.
WHAT WAS HOPED FOR.
Undoubtedly the monthly purchases
by the government OF four million aud
tive hundred Thousand ounces OF silver,
enforced under that statute, were re-
garded by those interested In silver pro-
duction as certain guaranty of It's in
crease In price. The result however,
has been entirely different. for imme-
dtately following spasmodic and slight
rise, the price of silver began TO fall after
the passage of the act and has since
reached the lowest point ever known.
This disappointing result has led to re-
newed and persistent effort In the dir &C.
tlou of free silver coinage.
Meanwhile, not only are ths Ievil effects
of The operation of the present law cou-
stantly accumulating, but che result to
which its execution must Inevitably lead
Is becoming palpaDle to all who give the
least heed to financial sublects.
This law provides that III payment for
the four million and five hundred ounces
of silver bullion which the Secretary or
the Treasury Is commanded co purchase
monthly. there shall be issued treasury
notes reassmabls on demand
in gold or silver coin, at the discretion of
said notes may be reissued. 1t is. how
ever. declared in the act TO be s'the es-
tablished policy OF the United States to
maintain the Two metsls on a parity with
each other upon the present
legal ratio or such ratio as may
be provided by law sTnis ideclar'
atiGn SO controls the action of the Secrs-
tary Of the Treasury as to pre-
vent his exercising the discre-
lion nominaliy vested In him
II by such acton the parity between gold
and silver may be disturbed. Manifestly
q refusal by the secretary 20 pay these
treasury notes in gold, If deLaaLdsd,
would necessarily RESULT in their discrsdit
aud depreciation as obligations payable
only III silver and would destroy the
parity between the two metals by estab-
fishing Discrimination In favor of gold
Up 10 the 10Th day OF July, 1898, these
notes had been issued III payment OF
silver bullion purchases. to the
amount of more Than one hun
dred and forty-seven millions of
dollars. While all but q very small
quantity of this bullion remains un-
coined and without usefulness in the
Treasury. many of the notes given in its
purchase have been paid in gold. This is
illustrated by the statenaent that between
the first day OF May. 1892. and the
fifteenth day OF July. 1893. the notes OF
this kind issued in payment for silver
bullion, amounted TO little more than
ffty-four milli0ns of dollars. and that
during the same period about forty-nine
millions or dollars were paid by the
Treasury in gold for the redemption OF
such notes.
THE GOLD RESERVE
The policy necessarily adopted OF pay
Ing these notes in gold has not spared The
gold reserve of one hundred millions of
collars long ago set aside by the Govern
nient for The redemption of other notes.
Tor this fund has already been subjected
TO the payment Of new obligations
amounting To about ous hundred and
htty millions of dollars on account of
silver purchases. and has, as a conse-
Quence for the first time since It's crea-
tlon, been encroached upon.
We have thus made tue depletion OF
our gold easy, aud have tenn pied other
aud more aDpreciaiive nations to aud it
10 their stock. That the opportunity we
have offered has not been neglected is
shown by the large amount Of geld which
have been recently drawn from our
Treasury and exported to increase the
financial Strength OF foreign nations.
The excess OF exports of gold over its
imports for the year enfing June 80,
1898, amounted to more than slightly seven
hnd half millions of dollars.
Between the first day OF July. 1890, and
the fifteenth day OF July. 1898, The gold
coin aud bullion In our treasury decreased
more than oue hundred and rhirty-two
millions of dollars. Mhileduring the same
period the silver coin and bullion In the
treAsed more than one hundred and
forty seven millions Of dollars. Unless
Government bonds are to be constantly
issued and sold to repleDish our exhausted
gold, only to be again exhausted, lt Is ap-
pareur that the operation of the silver
purchase law now In force leads in the
direction OF the entire substitutiau of
lilver for the gold in the government
treasury, and that thls must pe followed