The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1893-08-16
THE PRESIDENTS MESSAGE.
O1eveland's Clear Solution Of the Financial
Problem.

THE PRESIDENTS MESSAGE.
oleveland's Clear Solution Of the Financial
Problem.
WASHINGTON, August 8.--The fol
lowing is the Presidential message:
To the Congress Of the United States:
The existence of an alarming and eX-
traordinary business situation, involv-
ing the welfare and prosperity of all
our people, has constrained me to call
together in extra session of the people $
representatives in Congress, to the end
that through wise and patriotic exer-
else. of the legislative duty, with
which they solely are charged, present
evils may be mitigated and dangers Of
the future may be avoided.
Our unfortunate financial plight is
not the result of unSoward events nor
Of conditions related to our natural
resources, nor is it traceable to any of
the Affections which frequently check
national growth and prosperity. With
plenteous crops, with abundant prom
Use of remunerative production ana
manufacture, with unusual invitation
to safe investment and with satisfac-
tory assurance to business enterprise,
suddenly financial distrust and fear
have sprung up on every side. Nu-
merous moneyed institutions have sus-
pended because abundant assets were
not Immediately available to meet the
demands of frightened depositors.
Surviving corporations and'individuals
are content to keep in hand the money
they are usually anxious to loan and
those engaged in legitimate business
are surprised to find the securities
they offer for loans, though heretofore
satisfactory, are no longer accepted.
Values supposed to be fixed are fast
becoming conjectural and loss and fail.
ure have invaded every brancS Of bus
mess.
I 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 stat
ute passed on the 18th day Of July,
1890, which was the elimination Of
much agitation on the subject involv-
ed, and which may be considered a
truce after a long struggle between the
advocates Of free silver coinage and
those intending to be more conserva-
tive. Undoubtedly the monthly pur-
chases by the Government Of four mill
lion and FIVE hundred thousand ounces
of silver, enforced under the statute,
were regarded by those interested in
silver production as certain guaranty
Of it's increase 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 passage Of the Act and
has since reached the lowest point
ever known. This disappointing re-
suit has led to renewed and persistent
effort in the direction Of free silver
coinage. Meanwhile not only are the
evil effects Of the operation Of the
present law constantly accumulating,
but the result to which its execution
must inevitably lead is becoming pal
pable to all who give the least heed to
financial subjects.
HOW THE SHERMAN ACT OPERATES.
This law provides that in payment
for the four million and FIVE hundred
thousand ounces of silver bullion,
which the Secretary of the Treasury
is commanded to purchase monthly,
there shall be issued treasury notes
redeemable on demand in. gold or sill
yer coin, at the discretion Of the Sec
retary of the Treasury, and that said
notes may be reissued. 1t is, however,
declared in the Act to be "the estab-
lished policy of the United States to
maintain the two metals on parity
with each other upon the present legal
ratio or such ratio as may be provided
by law"
This declaration controls the action
Of the Secretary of the Treasury so as
to prevent his exercising the discretion
nominally vested in him, if by such
action the parity between gold and
silver may be disturbed. Manifestly
refusal by the Secretary to pay these
treasury notes in gold if demanded
would necessarily result in their dis
credit and depreciation as obligations
payable only in silver, and would de-
stroy the parity. between the two met
ais by establishing discrimination in
favor Of gold.
Up to the 18th day of July, 1893,
these notes had been issued in pay
ment of silver bullion purchases to the
amount of more than one hundred and
forty-seven millions of dollars. While
all but very small quantity cf this
bullion remains uncoined and without
usefulness in the treasury many of the
notes given in it's purchase have been
paid in gold. This is illustrated by
the statement that between the 1st day
of May, 1892, and the 18th day Of
July, 1893, the notes of this kind is
sued in payment for silver bullion
amounted to little more than fifty
four millions of dollars, and that dur
ing the same period about forty-nine
millions of dollars 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 one hundred
millions Of dollars long ago set aside
by the Government for the redemption
of other notes, for this fund has al
ready been subject to payment Of new
obligations amounting to about one
hundred and fifty millions Of dollars
on account of silver purchases, and
has as consequence for the first time
since it's creation been encroached
upon. We have thus made the deple-
tion of our gold easy, and have tempt
ed other and more appreciative nations
to add to their stock. That the oppor-.
tunity we have offered has not been
neglected is shown by the large
amounts of gold which have been re.
Gently drawn from our treasury and
exported to increase the financial
Of foreign nations. The ex-
cess Of exports of gold over its imports