The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1893-08-09
PRESIDENTS
Mr. Cleveland Sends to Congress Mis-
Message on the Financial
Question.
The Tariff Can Walt, But the SheE-
man Law Should BE Re.
pealed,
And the Sooner 1t Is Done, In His
Opinion, the Sooner We Will
Prosper.

WASHINGTON. Aug 8.-The presi-
dents message was delivered to con-
gress shortly after noon. It's reading
was proceeded with. 1t is as follows:
To the Congress of the United States:
The existence of an alarming and extra
ordinary business situation, involving the
welfare and prosperity of all our people,
has constrained me to call together In
extra session the peoples representatives
I'm congress, to the end that through wise
and patriotic exercise of the legislative
duty with which they solely are charged,
present evils may be mitigated and dan
gers threatening the future may be
Eyerted
Our Financial Plight
is not the result of untoward events, nor
of conditions related to our natural re-
sources; nor is it traceable to any of the
Affections which frequently check national
growth and prosperity. With plenteous
crops, with abundant promise of re-
munerative production and manufacture,
with unusual invitation to safe investment
and with satisfactory assurance to busi-
ness enterprise, suddenly financial distrust
and fear hsve sprung up on every
side. Numerous moneyed institutions
have suspended because abundant assets
were not Immediately available to meet
the demands of the frightened depositors.
The surviving corporations and individ-
nals are content to keep in hand the
money they are usually anxious to loan,
and those engaged in legitimate business
are surprised to find that the securities
they offer for loans, though heretofore sat
isfactory, are no longer accepted. Values
supposed to be fixed are fast becoming
conjectural, and loss and failure have in
vaded every branch of business.
Chargeable to Legislation.
/ believe these things are principally
chargeable to congressional legislation
touching the purchase and coinage of sill
yer by the general government.
This legislation is embodied in a statute
passed on the l4th day of July, 1880, which
was the elimination of much agitation on
the subject involved, and which may be
considered a truce, after a long struggle,
between the advocates of free silver coin
age and those intending to be more con-
seryafive.
Undoubtedly the monthly purchases by
the government of 4, 500 900 ounces of sill
yer, enforced under that statute, were re-
garded by those interested in silver pro-
duction as a certain guaranty of its in
crease in price The result, however, has
been entirely different, for Immediately
following spasmodic and slight rise, the
price of silver began TO fall after the pas
sage of the act and has since reached the
lowest point ever known. This disappoint-
ing result has led to renewed and per
sistent effort In the direction of free silver
coinage.
Evil Effects Accommodating.
Meanwhile. not only are the evil effects
of the operation of the present law con-
stantly accumulating, but the result to
which it's execution must inevitably lead
Is becoming palpable to all who give the
least heed to financial subjects
This law provides that In payment fur
the 4,500, 600 ounces of silver bullion which
the secretary of the treasury liz commanded
to purchase monthly, there shall be issued
treasury notes. redeemable on demand in
gold or silver coin, at the discretion of the
secretary of the treasury, and that said
notes may be re-issued. 1t Is, however
declared in the act to be .'the established
policy of the United States to maintain
the two metals on a parity with each other
upon the present legal ratio or such ratio
as may be provided by law"
Prevents Discretion.
This declaration so controls the actor: c1
the secretary of the treasury as to preven,
his exercising the discretion nomiaally
vested in him, Ii by such action the parity
between gold and silver may be disturbed
Manifestly refusal by the secretary tt
pay these treasury notes in gold, Il
demanded, would necessarily result II
their discredit and depreciation as obliga
tions payable only i'm silver, and would
destroy the parity between the two metal,
by establishing discrimination i'm favol
of gold.
Up to the 18th day of July, 1893, thes,
notes had been issued in payment of silvel
bullion purchases, to the amount of NOR,
than $147, 100000. While all but yer,
4 small quantity of this bullion remains un
coined, and without usefulness in th,
treasury, many of the notes given in IL
purchaae have been paid in gold. This i
illustrated by the statement between th,
first day OF May, 1892, and the 18th day .
July, 1893, the notes of this kind issued ii
payment for silver bullion amounted Il
little more than $54,000,000, and tha
during the same period about 40, 900, 90
were paid by the treasury in gold for tn
redemption of such notes.
Made Depletion Easy.
The policy necessarily adopted of payins
these notes In gold has not spared the golt
reserve Of 800 ,000, 900 long ago set aside b,
the government for the redemption q
other notes, for this fund has already bee
subjected to the payment of new obliga
tions amounting To about $50 000, 600 o
account of silver purchases, and has as
consequence, for the first time since it
creation, been encroached upon
We have thus made the depletion of OH
gold easy, and have helped other and mcr
appreciative nations to add it to thai
stock. That the opportunity we have q.
fered has not been neglected, Is shown b
the large amounts OF gold which have bee
recently drawn from our treasury and e.
ported to increase the financial strength &
foreign nations. The excess OF exptaa 4
gold over its imports for the year elaia
june 30. 1888. amounted I'D more tha