Democratic messenger., 1893-08-12
PRESIDENTS
MESSAGE.
Recommends Prompt Repeal of
The Sherman Act.

luO Du0l Hull hUts
ABOVE PARTY POLITICS.
A Strong Stand Upon the Financial
Question-The People Entitled to
Sound and Stable Currency
Immediate Importance of
Tariff Reform.
The message OF President Cleveland was
presented 10 Congress. II was as follows.
To the Congress OF the United States:
The existence OF an alarming and extraor
dinary business situation involving the wei
fare and prosperity OF all our people, has
constrained me TO call together In extra ses-
sion the peop.e's 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-
mitigated and dangers threatening the future
may b. averted.
Our unfortunate financial plight is not the
result OF untoward events nor Of conditions
related to our natural resources; nor is 1t
traceablc TO any OF the Affections which fire.
quently check national growth and prosper
ity. With plenteous crops. with abundant
promise OF remuneratiye productions and
manufacture. with unusual invitation 10 safe
investment and with satisfactory assurance
TO business enterprise, suddenly financial
iistrusi a! fear have sprung up on every
side.
Numerous monsyed institutions have sus.
pended because abundant assets were not
Immediately available to meet the demands
OF frightened depositorS. Surviving cor
pora;ions and individuals are content to
keep in hand the money they are usually
anxious to loan. and those engaged in legiti-
mate business are surprised to find that the
securities they offer ior loans, though here.
tofore satisfactory. are no longer accepted.
Values supposed TO be fixed are fast becom-
ing conjectural. aud loss and failure have in
VOWED Every branch OF business
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 statute
passed ON the 18th day of July, 1890, which
was the elimination OF much agitation on
the subject involved, and which may be con-
sidered truce. after long struggle. be-
tween the advocates OF free silver coinage
and those int nding TO be more con.e,va.
tive.
SILVER PURCHASES.
Undoubtedly the monthly purchases by the
government of 800, 900 ounces of silver. en-
TO- ced under that statute were regarded by
those interested in silver production rs a
certain guaranty of its increase in price.
The result. however. has been entirely differ
ent. for Immediately following spasmodic
and slight rise, the price OF silver began to
fa'l 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 or free
silver coinage.
Meanwhile, not only are the evil eft cts OF
the operation Of the present 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.
The law provides that in payment for the
4.50O, 900 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
goll or silver coin at the discretion of the
Secretary of the Treasury. and that said notes
may be ressued. II is, however, declared
In the act TO be ''the established policy OF
the United States 10 maintain the two metals
on parity with each ether 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 Treasury as to prevent
his exercising the discretion nominally vested
in him, can by such action the parity between
gold and silver may be disturbed. Manifestly
n refusal by the Secretary to piy the Treas
ury notes in gold, il demanded would neces-
sarily result IT, their discredit and deprecia-
tion as obliga' ions payable only in silver and
would destroy the parity between the two
metals by establishing a discrimination in
favor of gold.
BULLION REMAINS UScoISED.
Up to the 18th day of July, 1898. these
notes had been issued in payment of silver
bullion purchases, to the amount OF more
than 8 1000. 600. While all but a very
small quantity of this bullion remains un-
coined and without usefulness in the Treas
ury. many OF the notes given in its purchase
have been paid in gold. This is illustrated
by the statement that between the Ist day OF
May. 1872, and the 18th day of July. 1898, the
notes OF this kind issued in payment for sill.
yer bullion amounted to little more than
S54. 600. 900 and that during the same period
about S49.00O,0l 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 dol
lars long ago set aside by the Government
for the redemption Of other notes, fer this
fund has already been sujectei TO the pay
ment Of new obligations amounting to about
$50. .00), 900 on account OF silver purchases.
ana mas rs consequence, Tor the uret time
since it's creation, been encroachci upon.
We have thus made the depletion of our
gold easy. and have tempted other and more
appreciat,ve nations TO add IL to their stock.
That the opportunity We have offered has
not been neglected Is shown by the large
amounts Of gold which have been recently
drawn from our Treasury and exported to
increase the financial strength OF foreign
nations. The excess of exports of gold over
its imports for the year ending June 80, 1898.
amounted TO more than fs7, 800. 900.
Between the flrst day Of July, 1890 spd the
fifteenth day of July. 1898, the gold coin aud
bullion in our Treasury decreased more than
sis2, ,OOo, 900, while during the same period
the silver coin and bullion in the Treasury