The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1893-08-18
THE JESSAGE.
Tho Presidents Recommendation
to Congress-.
Rcoea, of the sherman Act Favored
Legislation Advised for the Es-
tAblIshing OF a Gold
standard.

=
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 mitigated
ard 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 II trace
able TO any OF the Affections which frequently
check national growth and prosperity. With
plenteous crops, with abundant promise OF re-
rnunerative 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 moneyed
institutions have suspended because abundant
assets were moi Immediately available TO meet
the demands Of frightened depositors, surviving
corporations and individuals are content TO
keep in hand the money they are usually anX-
ious 10 loan, and those engaged in legitimate
business are surprised TO lind that abe securi-
ties they offer for loans though heretofore sat
factory, are 40 longer accepted Values sup
posed TO be fixed are fast becoming conJectural
and Joss and failure have invaded every branch
Of business.
Ibclieve these things are principally charge
able to congressional legislation touching the
purchase and coinage of silver by the general
coYerrmen. This legislation is embodied in
statute passed on the lIth day of July, 1890
which was the elimination OF much agitation
OF the subject involved ana which may be con
sidered tru,e after the long struggle between
The advocates Of free silver coinage and those
intending TO be more conservative.
Cudoubtedly the monthly purchases by the
Government of so, % ounces of silver, forced
.ba fNEy those in
teresied in silver production a certain guar
anty OF its increase in price. The result, how
ever, has been entirely different. for immedi-
ately 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 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 present law constantly &C
cuma,atnC. but the result to which its execu-
t!oa must inevitably lead is becoming palpabe
TO al who give the least heed 10 financial sub
jecis
This law provides that in payment for the
$4,000 ounces OF silver bullion which the sec
rotary of the treasury is commanded to pur-
chase monthly there shall be issued treasury
no,es redeemable on demand in gold or silver
coin. at the discretion Of the secretary OF
the treasury. and that the said notes may
be reissued II s, however, declared in the act
to he "lhe established policy OF the United
StStes 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
veated in him il BY such action the parity be-
tween gold and silver may be disturbed Mani
festIy, q refusal by the secretary to pay these
treasury notes in gold if demanded would
necessarily result in their diScredit and de-
probation. as Obligations payable only in sill
ve7. and would Gestrov the parity between the
two metals by establishing discrimination in
favor of gold
Up 10 the 18th day of July, 1898, these notes
had been issued in payment Of silver bullion
purchased 10 the amount OF more than si4I,OJj,-
uG While al but very small quantity OF
this bullion remains uncoined AMI without use
fitness in the treasury, many Of the notes
given in lis purchase have been paid in gold.
This Is illustrated by the statement that be-
tween the LIST OF May. ls9., and the 18th day OF
July. 1873 The notes Of this kind issued in paw
1ccnt for silver bullion amounted 10 little
more than $4,000, 0J0. and that during the same
period about S49. 0000JJ we're paid by the treas
urv IL sold for the redemption of such notes.
The policy necessarily adopted OF paying
these notes in god has not spared the gold re
serrs OF i ntO',U0J, long ago set aside by the
government for the redemption of other notes
Tor This tunl mas Already Uttl SuD.tCltu ~ llt
paynent OK new obligations amounting 10 about
100000 on account Of silver purchases, and
has as consequence, Tor the first time since lis
erection, been ercrOached upon
We have thus made The depletion OF our gold
easy ana have tempted other and more appre
c;atiye nations 10 add il 10 their stock. Thar
the opportunity we have offered has not beer
neglected is shown by the large amounts o
gold which have been recently drawn from
our treasury and exported to increase the
financial strength OF foreign nations The ex
cess Of exports Of col2 over its imports fo
the year ended June -, 1893 amounted Il
more than ssT,5J0O0L Between the first dal
Of january, 1888. and the 18th day of July, 1898
the gold coin and bullion in our treasury &c
creased more than S1Ss,0J1,OO0. while durini
the salee period The silver coin and bullion il
the treasury increased more than sli7,OJlOOl.
Unless government bonds are to be constant
" issued and sold 20 replenish our exhausted
gold, only 10 be again exhausted II is apparen
that tho operation OF the silver purchase Law
COW in force leads in the direction Of the entlr
substitution of silver for the gold in the gov
eminent treasury and that this must be FOL
lowed oy the payment OF all government obi
cations in deprecated silver
At this stage gold and silver must part com
pany and the government must fail in its estat
iishcG policy 10 maintain the two metals on
parity with each other
Given over 10 the exclusive use OF cur
oency greatly deprecia ted, according 10 IN
standard OF the commercial world, we coui
co longer claim place among The nations o
the first class nor could our government clair
performance OF its obligation so far as sue
IN obligation has been imposed upon ii, I
provide for the use Of the people the best an
safest money r. as many of its friends claim
silver ought 10 occupy higher place in gu
currency and the currency Of the world throug
general international cooperation and agree
= - mis- a sa~n Sxrfl
no; be IN position 10 gain hearing in favol
Of such an arrangement so long as We are will
ing 10 continue our attempt 10 accomplish n
result single handed
The knowledge in business circles among OF
own people that our government cannot max
its nat equivalent 10 intrinsic values nor kee
inferior money on parity with superior none
by its own independent efforts, has resulted |
such lack Of confidence at home, in IN
stability OF currency values that capital refuse
its aid 10 new enterprises while million
are actually withdrawn from the channels {
trade and commerce TO become idle and unprt
cuctive in the hands Of timid owners. Foreig
investors, equally alert, not only decline I
purchase American securities, but make hast
TO sacrifice those which they already have
Il does not meet the situation 10 say that 81
prehension in regard 10 the future OF OF
finances is groundless and that there is \
eason for lack Of confidence in the purpose
or power OF the government in the premise
The very existence Of this apprehension an
lack OF confidence, however caused, is menas
which ought not for a moment be disregarded
Possibly If the undertaking We have in han
were the maintenance Of specific know
quantity of silver at q parity with gold on
ability 10 do so might be estimated and gauge
and perhaps, in view Of our unparalleled grows
and resources, might be favorably passed upol
But when our avowed endeayor Is TO maintai
such parity in regard 70 an amount Of silver fl
cressing at the rate Of s50,00e.0O0 yearly, wit
70 fixed termination 10 such increase. il ca
hardly be said that a problem is presente
whose solution is free from doubt