The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-08-09
Presidents Message on the Finances
OF the Country Read to
Congress.
Urges Prompt Repeal OF the Silver
Purchasing Clause OF the
Sherman Law.
nensons for tho Reoom mendation Given
At Some Length-Rspeai Should He
Accom- p,ished Promptly.

to-day:
To the congress OF the United States: The
existsnoe of an alarming and extraordinary
basinsss 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 the wise and patriotic
exercise of the legislative duty with which
they are solely charged the present OWLS
may be mitiRated and dangers threatening
for tho future may be avoided.
Our unfortunate financial plight is not
the result Of untoward events. nor to con-
dltions related to our natural resources;
nor 10 IL traosable to any Of the aflictions
which frequently check our national
growth and prosperity. With plsntsous
crops. with abundant promise OF rem unera-
tive production and manufactures, with
unusual invitation to safe investment and
with satisfactory assuranoe TO business en-
terpR!ss, suddenly financial distfust and
fear have sprung mp ON every side. Numer-
Gus m oney institutions have suspended be-
cause abundant assets we're not imm sdistely
available to meet the demands Of fright
ensd depositors. Surviving corporations 9
and Individuals are content to keep in hand
money that they are usually anxious to
loan; and those engaged in Legitimate bust
ness are surprised to find that the securities
they offer for loans, though heretofore sat
isfaotory. are no longer accepted. Values
suppossd TO be fixed are fast becoming oon-
| iectural, and loss and failure have invaded
eve y branch Of business.
believe these things are principally
charRsable to congressional legislation
| touching the pm chase and coinage Of silver
by tho general government. This legisla-
| tion 10 embodied in tho statute passed the
14th of July. $780, which was the culmin
ton Of much agitation on the subject in
vowed and which may be considered truce
after long struggle between the advocates
OF free silver coinage and those intending
| to be moro conservative.
Undoubtedly the monthly purchase by ths
govei nment of 100000 ounces Of silver
! those Interested In silver production as ce :
tni. a,sG Gfanty of its increase in price. The
result however, has been entirely different;
for, inn mnedlately following the srasmodic
and slight rise, tho price of silver began to
fall after she passage OF tho aot and has
This disappointing resuIt has led to r.
newsd and persistent effort in the direction
| OF free silver coinage.
Msanwhilo, not only are the evil effects
of the operation of tho present law con-
stRntly seccum ulating, but the result to
which its execution must inevitably lead
Ia becoming palpable to all who give the
least heed TO financial subjects. This law
provides that in payment for 4.500,000
ounces of silver bullion, which ths score.
tary Of tho TREASURY is commanded to pur-
chase monthly. thero shall bc Issued tea
sury notes. rsdesmable on domand In gold
or silver coin. at she discretion of the SOC
/ ~ hn Ara ma nta Al
may be reissusd. 1t Is. however. declared
in the aot TO bs "ths established policy Of
the United States to maintain tho two
metals upon a patty with eseh other upon
the present legal ATTIC, Or suoh ratio as may
be provided By law" This declaration 50
tary Of the treasury az to pro-
vent his exercising the disc elton
nominally vested in him. If by sn oh action
tho parity between gold and silver may he
disturbed. manifsstly the refusal by the
secretary to pay these notes in gold. II de-
diseredit and depreciation 40 obligations
pay abls only in silver, and would destroy
the parity between the two metals by thus
establishing disc imination In favor of
god.
Up to the fifteenth day OF July, 1898.
these notes had bs en- used In payment for
silver bullioa purchased TO the amount of
more than $i47.0OO.O0 While all but a
very small quantity Of this bullion remains
uncoined and without usefulness in ths
trensury, many Of. the notes given for ita
pui chase have been paid in gold. This is
illust atsd by the statement that. between
the first day OF Nav 1892, and the fifteenth
day OF July, 1S93 the notes Of this kind,
issued in payment for silver bullion,
amounted to little more than $54 600 600;
and that during the same period about $40
COO, 600 were paid by the treasury In gold
for the redemption OF such notes.
The policy necessarily adopted of paying
reserve of 800 QoO. oO0 long age set aside
by the government for the rede0 tion OF
other notes: for this fund has already been
subjected to the payment of new oblias-
tions amounting to about $lbO. 100000 on
account OF the silver purohases and has. as
creation, been encroaohed upen.
We have thus made the depletion Of our
gold easy. and have aided other and mors
appreoiatlve nations to add u to their
stock. That the opportunity We have Of
fered has not been neglected Ia shown by
the large amounts of gold which have bsen
recently drawn from our treasury and OK
ported to increase the financial strength of
foreign nations. The excess Of exports of
gold over its imports for the year ending
June 80 1888. amounts 10 more than $751;
100000. between the hrst day OF July. 1892.
and the fifteenth day of July. 1893, the
gold coin and bullion In our treasury de-
leased more than S132. 100000. while
during the same period silver coin
and bullion in The Il Neasury increased more
than $lA10O00O0. Unless government
bonds are to be constantly issued and sold
to replenish our exhausted gold, only to be
again exhausted. 1t 10 apparent that the op-
GRAFTON OF the silver purchase law now in
force lsaus in the direction OF the entire
substitution Of ailvsr for gold In the gov
ernmsnt TREASURY, and that this must bc
followed by payment of all government OBJ
legations In Deprecated silver. Az this