The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1893-08-11
PRESIDENT CLEVELAND'S
MESSAGE.
Oar Depiordbie Financial Plight Due TO the
Sherman Aet-Hs Eea Operations
Prompt and Unconditional
Repeal Demanded.

the message Of President Cleveland sent to
Cangress at IL 45 p. m. to-day.
The existence Of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of oil our people, has
constrained me to call together in extra ses-
eion of,he peoples representatives in Con-
gresst to the end thai, through q wise and
patriotic exercise Of the legislative duty
with which they solely are charged, present
evils may be miigated and dangers threat
eniug the future may be aver,ed.
Our unfortunate financial plight is not the
result of untoward events nor of conditions
related TO our natural resources nor is it
traceabie to any of the affections which fire.
quently check natural growth and prosperity.
With plentcous crops, with abundant promise
of remunerative production and msnufac-
ture, with unusual invitation to safe invest
ment, and with satisfactory assurance to
business enterprise, suddenly financial dis
trust and fear have sprung up on every side.
Numerous moneyed Institutions have sus-
pended because abundant assets were not
immediately available to meet the demands
Of frightened de! osilors, surviving corpora
ticns and individuals are content to keep in
= hand the money they are usually anxious to
loan, and those engaged in Legitimate busi-
ness are surprised to fnd that the securities
they offer for loans, though heretofore satis-
factory, are no longer accepted; values sup
posed to be fixed are fast becoming conf ectu-
raj, aud loss and failure have invaded every
branch of business.
THE SHERMAN LAW TO BLAME.
i believe these things are principally
chargcablc to Congressional legislation
touching the purchase aud coinage of silver
by the general government. This legisa-
tion is embodied in statute passed on the
14lh day of July. 1890, which was the cul-
mination Of much agitation on the subject
involved, and which may he considered n
truce after q long struggle between the advo-
Gates of free silver coinage aud those intend
ing TO be moro conservative. Undoubtedly
the mouthly purchases by the government of
100000 ounces Of silver, enforced under
that statute, were regarded by those inter
ested in silver production as n certain guar
anty OF its increase in price. The result,
however, has been entirely different, for i'm
medintely following n spasmodic and slight
rise the price of silver began to fall after the
passage # the act, aud has since reacted to
the lowest point ever known. This disap-
pointing result has led 10 renewed and per-
sistent effort in the direction of free silver
coinage. Meanwhile, not only are the evil
effects Of the operation Of the present law
constantly accnmuating, but the result, to
which its execution must inevitably lead, is
becoming palpable to all who give the least
heed to hnaCci,l subj ects.
This law provides that IN payment for the
100000 ounces of silver bullion which the
Secretary cf the Treasury is commanded to
purchase mouthly there shall be issued
treasury notes redeemahle on demand in
gold silver coins, at the discretion Of the
Secretary of the treasury and that said
notes may be rcissuel. 1t is, however, de-
clared in the act to be the established policy
ot the United States to maintain the two
metals Oh n parity with each other upon the
present legal ratio, or such ratio as may be
provided by law. This declaration so con.
trolls the action of the Secretery of the Treas
ury rs to prevent his exercising the discre-
lion nominally vested in him, If by such ac-
tion the parity between gold and silver may
be disturbed, Mapifestly, refusal by the
Secretary to pay these treasury notes in gold
would necessarily result in their discredit
ond depreciation, as obligations payable only
in silver, aud would destroy the parity be-.
tween the two metals by establishing a dis
elimination in favor of golI
Up 10 the 10th day of July, 1898, these
notes had been issued in payment of silver
bullion purchases to the amount Sl47, ,OOO,-
600, while all bnt q very small quantity of
'hs bullion remains uncoined and without
usefulness in the Treasury. Many Of the
notes given in its purchase have been paid
in gold. This is illustrated by the state
ment that between the 1st day of May, 1892
and the 18th day Of July, 1898, the notes of
this kind issued in payment for silver bullion
amounted to n little more than S54 ,000, 900,
and that during the same eriod about $40
100000 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 SlOO 100000 long ago set aside by the
government for the redemption of other
notes, for this fund has already been subject
to the payment of new obligations, amount
ing to about $l50O00,00 on account of
silver purchases. and has, us n consequence,
for the first time since its creation been en-
croached upon.
DEPLETION OF GOLD MADE EASY.
We have thus made the depletion of our
gold easy, aud have tempted other and more
"pprec'a'ive nations to add it to their stock
In. the opportunity We have offered has
been neglected is shown by the large
""Ounts of gold which have been recently
AVN from our treasury and exported to
incrc"se the financial strength of foreign
InIirns. The excess Of exports of gold over
'i'a imports for the year ending June 80,
1898. amounted to more than eighty-seven
i q half millions Of dollars. Between the
~ day of July, 1890, and the 18th day of
Jhly, 1893, the gold coin and bullion ia our
Treasury decreased moro than one hundred
AMI thirty-two millions of dollars. while
during the same period the silver coin and
bullion in the Treasury increased moro than
one hundred and forty-seven millions of
dollars. Unless government bonds are to be
constantly issued and sod to rcplensh our
exhausted gold, only to be again exhausted,
1t IL apparent that the operation of the silver
purchase law, now in force, leads in the
direction Of the entire substitution of silver
Tor gold in the government treasury, and
This must be followed by the payment of all
government obligations in silver.
at this stage gold and silver must part
company and the government must fail in
its established policy to maintain the two
metals on parity with each other. Given
over to the exclusive Use of currency
greatly deprecated, according to the stand.
ard of the commercial world, we would no
longer claim place among the nations of
the hrst class, nor could our government
claim performance of the obligation, so far
as such obligation has been imposed upon il,