Saint Mary's beacon., 1893-08-17
THE PRESIDENTS MESSAGE.
10 Me c0nqress ef Me Unissd Sac

extraordinary business situation in.
volving the welfare and prosperity
Of all oar people has constrained ms
to call together in extra session the
peoples representatives in Congress
to the end that through a wise and
patriotic exercise of the Legislative
duty with which they solely are
charged present evils may be miti-
gated and dangers threatening the
future may be ayerted.
Our unfortunate financial plight
j. not the resnltof-aatowafd eg<nss
nor Of conditions related to ouT
natural resources, nor is it traceable
t. any of the Affections which FIRE
quently check national growth aud
prosperity. With pienteous crops,
with abundant promise of remun-
erative production and manufac-
ture, with unusual invitation to
safe investment and with satisfac-
tory assurance to business enter
prise, suddenly financial distrust
and fear have sprung up on every
side. Numerous moneyed institu-
tions have suspended because abun-
dant 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 surpsised to find that
the securities they they offer for
loans, though heretofore satisfac-
tory, are no longer accepted. Val
ues supposed to be fixed are fast be-
coming conjectural, and loss and
failure have involved every branch
of business.
l believe these things are princi-
pally 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 14th day of
July. 1890, which was the culmina-
ton of much agitation on the SUBJ
ject involved, and which may be
considered a truce, after a long
struggle between the advocates OF
free-silver coinage and those intend
ing to be more conservative.
Undoubtedly the monthly pur-
chases by the government of four
million and five hundred thousand
ounces of silver, enforced under
that statute, were regarded by those
interested in silver production as a
certain guaranty of its increase in
price. The result, however, has
been entirely different, for imme-
diately following 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. This disappoint-
ing result 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 pre-
sent law constantly accumulating,
but the result to which its execution
must inevitably lead is becoming
palpable to all who give the least
heed to financial subjects.
This law provides that in pay
ment 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 treas
ury notes redeemable on demand in
gold or silver coin at the discretion
of the Secretary of the Treasury,
and that 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 on a 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 Treas
ury as to prevent his exercising the
discretion nominally vested in him
and by such action the parity be-
tween gold and silver may be dis
turbed. Manifestly a refusal BY
the Secretary to pay these treasury
notes in gold, if demanded, would
necessarily result in their discredii
and depreciation as obligations pay
able only in silver and would des
troy the parity between the two me
tails by establishing a discrimination
in favor of gold.
I'm To the 18th dav of Julv 1909