The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1893-08-11
THE MESSAGE,
The Presidents Recommendation
to Congress.
Repeal of the Sherman Act Favored
Legislation Advised for the Es.
tablishing of Gold
Standard.

WASHINGTON, huS. 81 ne message
of President Cleveland to the extra ses-
sion of congress was delivered to both
houses shortly before l o'clock. 1t is
as follows:
To the Congress of the United States.
The existence of an alarming, an extraordi.
nary, business situation, involving the welfare
and prosperity OF all our people, has con-
strained me to call together in extra session
the peoples representatives in congress to the
end that through wise and patriotic exercise
of the legislative duty with which they are
solely charged, present evils may be mitjgated
and dangers threatening the future may be
averted.
Our unfortunate financial plight is not the
result OF untoward events or of conditions re-
lated to our national resources nor is it trace
able to any of the afiictions which frequently
check national growth and prosperity. With
plenteous crops with abundant promise OF re-
nunerative production and manufacture, with
unusual invitation to safe investment and with
satisfactory assurance to business enterprise,
suddenly financial distrust and fear have
sprung up on every side. Numerous muneyed
institutions have suspended because abundant
assets were not Immediately available to meet
the demands Of frightened depositors, surviving
corporations and individuals content TO
keep in hand the money they are Usually anx.
ious TO loan, and those engaged in legitimate
BUSINESS are surprised to find that the securi-
ties they offer for loans. though heretofore sat.
factory, are no longer accepted Values sup
posed to be fixed are fast becoming conjectural
and loss and failure have invaded every branch
OF business.
believe these things are principally charge
able TO congressional legislation touching the
purchase and coinage Of silver by the general
government This legislation is embodied in q
statute passed on the 1ith day of July, 1890.
which was the elimination of much agitatio
of the subject involved and which may be con-
It'd f<,,.
the advocates OF free silver coinage and those
intending to be more conservative.
Undoubtedly the monthly purchases by the
government of 800, 90 ounces of silver forced
under that statute were regarded by those in
terested in silver production 4 certain guar
apty of its increase in price The result, how
ever, ha 5 been entirely different for immedi-
ately following spasmodic and slight rise the
price of silvtr began to fall after the passage
Of the act and has since reached the lowest
point ever known. This disappointing result
has led to renewed and persistent effort in the
direction of free silver coinage.
Meanw hile, not only the evil effects O.
the operation of the present law constantly ac-
cumulating, but the result TO which its execu-
ton must inevitably lead. is becoming palpable
TO ali who give the least heed to financial sub
jects
This law provides that in payment for the
$500 ounces OF silver bullion which the sec
retary OF the treasury is commanded to pur-
chase monthly there shall be issued treasury
notes redeemable on demand in gold or silver
cOn at the discretion of the secretary of
the treasury, and that the said notes may
be reissued. 1t is, however, declared in the act
to be ''the established 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 actions
OF the secretary Of the treasury as to
prevent his exercising the discretion nominally
vested in him if by such action the parity be-
tween gold and silver may be disturbed Mani
festly, a refusal by the secretary to pay these
treasury notes in gold il demanded would
necessarily result in their discredit and de.
precfation- as obligations payable only in sill
yer, and would destroy the parity between the
two me tails by establishing diScrimna tion in
favor of gold
Up to the 18th day of July, 1893, these notes
had been issued in payment of silver bullion
purchased to the amount of more than Sii7,Oo),'
OOO While all but very small quantity OF
this bullion remains uncoined and without use.
fulness in the treasury, many of the notes
given in its purchase have been paid in gold
This is illustrated by the statement that be-
tween the LIST Of May, 1897, and the 18th day o
July. 1s93 the notes of this kind issued in pay
ment for silver bullion amounted to q little
more than s54, 900, 900. and that during the same
period about $40 600 ,0O) were paid by the treas
ury in gold for the redemption of such notes.
The policy necessarily adopted Of paying
these notes in gold has not spared the gold re
serve OF slJ0Uoo,0Oo 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 obligation amounting to about
$40 100000 on account of silver purchases, and
has as consequence, for the first time since fts
creation, been encroached upon.
We have thus made the depletion OF our goli
easy and have tempted other and more apprc
ciative nations 10 add 1t to their stock. Tha
the ODnOrtnnitv have Offerpl hepr
neglected is shown by the large amounts o.
gold which have been recently drawn from
our treasury and exported to increase tho
financial strength of foreign nations The ex
cess of exports of gold over its imports fol
the year ended June 81, 1893 amounted tt
more than PSI, $4,000. Between the first day
of January, 1899, and the 18th day OF July 1893
the gold coin and bullion in our treasury de
creased more than s13', ,000 O00 while during
the same period the silver coin and bullion il
the treasury increased more than Sli7, 10000.
Unless government bonds are to be constant
| ly issued and sold to replenish our exhausted
gold, only to be again exhausted, 1t is apparen
that the operation of the silver purchase law
now In force leads in the direction of the entir.
substitution of silver for the gold in the gov
ernment treasury and that this must be foi
lowed by the payment of all government obli
| cations in deprecated silver
AT this stage gold and silver must part com
| pany and the government must fail in its estab
parity with each other.
| Given over to the exclusive use of a cur
| rency greatly deprecated, according to tn,
standard OF the commercial world, we coult
| no longer claim a place among the nations o
the first class, nor could our government claim
| a performance of its obligation, so far as sucl
| an obligation has been imposed upon 1t, Il
| provide for the use of the people the best ant
| safest money II, as many of its friends claim
| silver ought to occupy higher place in ou
| currency and the currency of the world throug,
| general international, operation and agree
| ment, it is obvious that the United States will
| not be in position to gain hearing in favor
| of such an arrangement so long are will
| ing to continue our attempt 10 accomplish th'
| result single handed
| The knowledge in business circles among on
| own people that our government cannot mak'
| inferior money on a parity with superior mane]
/ by its own Independent efforts, has resulted il
| such lack of confidence at home in III.
| stability of currency values that capital refuse
its aid to new enterprises while million
| are actually Withdrawn from the channels o
/ trade and commerce to become idle and unpro
| ductive in the hands of timid owners. Foreign
| investors, equally alert, not only decline I,
/ purchase American securities, but make hast
| to sacrifice those which they already have.
1t does not meet the situation to say that ap
prehension in regard to the future OF ou
finances is groundless and that there is n,
| eason for lack of confidence in the purpose
| or power Of the government in the premises
| The very existence Of this apprehension ant
| lack Of confidence, however caused, is menac'
| which ought not for a moment be disregarded
| Possibly il the undertaking We have in han,
l were the maintenance of a specific know
| quantity of silver at a parity with gold. oul
| ability to do SO might be estimated and gauget
and perhaps. in view Of our unparalleled gro w
and resources, might be favorabiy passed upon
But, when our avowed endeavor is to maintain
such parity in regard to an amount of silver in
creasing at the rate Of 5O,0Oc.oo0 yearly, with
40 hxed termination to such increase. it car
| hardly be said that problem is presented
whose solution is free from doubt
The people of the United States are entitlet
| o q sound and stable currency and to money
| recognized as such on every exchange and il
| every market OF the world Their government
has no right to injure them By financial expert
ments opposed to the policy and practice oi
| other civilized states. Nor is 1t justified in
| permitting an exaggerated and unreasonable