Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1893-08-19
Presidents Message.
The following message was sent to
congress at noon of Tuesday, August 8.

The following message was sent to
congress at noon of Tuesday, August 8.
To the Congress of the United States:
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 rep-
resentatives in congress, to the end that
through wise and patriotic exercise of
their legislative duty with which thew
solely are charged, the present evils NAV
be mitigated and the dangers threaten.
Ing the future may be averted.
Our Financial Plight.
Our unfortunate financial plight is not
the result of untoward events nor of con-
ditions related to our natural resources:
nor is it traceable to any of the Attic
tions which frequently check national
growth and prosperity. With plenteous
crops; with abundant promise of remun-
erative production and manufacture;
with unusual invitation to safe invest
ment and with satisfactory assurance to
business enterprise, suddenly financial
distrust and fear have sprung up on
every side.
Numerous moneyed institutions have
suspended because abundant assets were
not Immediately available to meet the de-
mands of frightened depositors. Surviv-
ing corporations and individuals are too
content to keep in hand the money they
are usually anxious to loan, and those en-
gagged in legitimate business are sur
prised to find that the securities they
offer for loans, though heretofore salts
factory, are no longer accepted.
Conjectural Values.
Values supposed to be fixed are fast
becoming conjectural, and loss and fail
ure have invaded every branch of bust
ness.
/ believe these things are principally
chargeable to congressional legislation,
touching the purchase and coinage of
silver by the general government This
legislation is embodied in a statute passed
on the fourteenth day of July, 1890,
which was the elimination of much agi-
isation on the subject involved and which
may be considered a truce after the long
Struggle between the advocates of free
silver coinage and those intending to be
more conservative.
Undoubtedly the monthly purchase by
the government of four million, five
hundred thousand ounces of sill
YER, forced under that statute were regar-
ded by those interested in silver produc-
ton, as a certain guarantee of its increase
in price. The result, however, has been
entirely different, for Immediately fol-
lowing a 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.
evil Effects" of Free Coinage.
This disappointing result has led to
renewed and persistent effort in the di-
rection of free silver coinage. Mean
while, not only are the evil effects of the
operation of the present law constantly
execution must inevitably lead is becom-
ing palpable to all who give the least
heed to financial subjects.
This law provides that in payment for
the four million, five hundred thousand
ounces of silver bullion which the secre-
tary of the treasury is commanded to pur-
chase monthly, there shall be issued
treasury notes, redeemable on demand in
gold and silver coin, at the discretion of
the secretary of the treasury; and that
said notes may be reissued. lis, how
ever, declared in the act to be 'the es-
tablished policy of the United States to
maintain the two metals upon 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
Dominally vested in him, if by such &C
ton the parity between gold and silver
may be disturbed.
Manifestly refusal by the secretary
of the treasury to pay these treasury
notes in gold, if demanded, would neces-
sarily result in their discredit and de-
probation as an obligation payable only
in silver and would destroy the parity
between the two metals by establishing
discrimination in favor of gold.
Bullion Still Uncoined.
Up to the 18th day of July, 1893, these
notes had been issued in payment of sill
yer bullion purchased to the amount of
more than one hundred and forty-sev en-
million dollars. While all but a very
small quantity of this bullion remains
uncoined and without usefulness in the
treasury, Luduy VI Iue HOtcS given III lCo
purchase have been paid in gold. This
is illustrated by the statement that be-
tween 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 fifty-four million dollars,
and that during the same period about
forty-nine million dollars were paid by
the treasury in gold for the redemption
of such notes.
The Gold Reserve Not Spared.
The policy necessarily adopted of pay
ing these notes in gold has not spared the
gold reserve of one hundred million dol
lars long ago set aside by the govern
ment for redemption of other notes, for
this fund has already been subjected to
the payment of new obligations amount
ing to about one hundred and fifty mil
lion dollars on account of silver
purchases and has as con-
sequence for the first time
since its creation been encroached upon.
We have thus made the depletion of our
gold easy and have tempted other and
more appreciative nations to add to their
stock.
v