Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-28
A SPECIAL MESSAGE
The President Writes Cmgress on
the Financial Situation.
he URGES NON-PARTISAN ACTION
Some Obligations That Must Be
Paid in Gold.
WORDS TO SILVER MEN

The President today sent to Congress the
following special message on the financia
question::
To the Senate and House of Representa-
tives:
In my last annual message commended
to the serious consideration of the Congress
the condition of our national finances, and
IN connection with the subject Endorsed
the plan of currency legislation which al
that time seemed to furnish protection
against impending danger. This plan has
not been approved by the Congress. In
the meantime the situation has so changed
and the emergency now appears so threat
ening that deem it my duty to ask at the
hards Of the legislative branch of the gov
ernment such prompt and effective action
as will restore confidence in our financial
soundness and avert business disaster and
universal distress among our people.
Whatever may be the merits OF the plan
for ills then Existing and safeguard
against the depletion of the gold reserve
then in the treasury / am now convinced
that it's reception by Congress and our
present advanced stage of financial per-
plexity necessitates additional or different
legislation.
With natural resources unlimited in va
riety and productive strength, AMI with a
Pee pie whose activity and enterprise seek
only fair opportunity to achieve national
success and greatness, our progress should
not be checked by q false financial Eolicy
and a needless disregard of sound none
tary laws. nor should the tinidity and fear
which they engender stand in the way Of
our prosperity.
1t is hardly disputed that this predica-
ment confrontS us today. Therefore, no
one in degree reSDOnSiblc fOr .E.. maxi
ing and execution OF our laws should fail
to see patriotic duty in honestly and sim
cerely attempting to relieve the situation
Manifestly this effort will NOT succeed un-
less 1t is made untrammeed by the preju-
dice of partisanship and with a stead
fast determination to resist the temptation
to accomplish party advantage.
We may well remember that If we are
threatened with financial difficulties all our
people In every station of life are con-
Cerned; and surely those who suffer will
not receive the promotion of party inter-
estS as an excuse for permitting our pres
ent troubles to advance to a disastrous
conclusion. 1t Is also of the utmost i'm
portance that We approach the study of
the problems presented as free possible
from the tyranny of preconceived opinions,
to the end that in a common danger we
may be able to seek with unclouded vision
safe and reasonable protection.
The Real Trouble.
The real trouble which confronts us con-
sists in lack of confidence, widespread
and constantly increasing in the continuing
ability or disposition of the government to
pay its obligations, grows to some extent
out of the palpable and apparent embar-
rassment attending the efforts of the gov
ernment under existing laws to procure
gold, and to greater extent out of the
impoSsibility Of either keeping it in the
treasury or canceling obligations by its ex-
pend1ture after It is obtained
The only way left open to the govern
ment for procuring gold is by the issue
and sale of it's bonds. The only bonds that
can be SO issued were authorized nearly
five years ago, and are not we'll calculated
to meet our present needs. Among other
disadvantages, they are made payable in
coin, instead of specifically in gold, which
in existing conditions detracts largely and
in an increasing ratio from their desira-
bility as investments. 1t is by no means
certain that bonds of this description can
much longer be disposed of at price cred
liable to the financial character of our gov
ernment. The most dangerous and irri-
tating feature Of the situation, however
remains to be mentioned.
1t Is found in the means by which the
treasury is despoiled of the gold thus OBJ
tanned without canceling a single govern
ment obligation and solely for the benefit
of those who find profit in shipping it
abroad or whose fears induce them to
hoard it at home. We have outstanding
government for which gold may be de-
manded; and curiously enough the law re-
quires that when presented, and in fact, re-
deemed and paid in gold. they shall be re-
issued. Thus the same notes may do duty
many times in drawing gold from the
treasury; nor can the process be arrested
as long as private parties, for profit or
otherwise, see an advantage in repeating
the operation. More than $3OOOOO,OOO in
these notes have already been redeemed in
gold, and Notwithstanding such redemption
they are still outstanding. Since the 18th
day of January, 1891, our bonded interest
beaNing debt has been increased $10O,9OO,-
900 TOR the purpose Of obtaining gold to
replenish our coin reserve. Two issues
were made amounting to 800, 100000 each
one in January, and the other in Novem-
Der. AS result of the first issue there
was realized something more than s5s,O0O,-
600 in gold. Between that issue and the
succeeding one in November, comprising
q period of about ten months, nearly S103,-
100000 in gold We're drawn from the treas
ury. This made the second issue necessary,
and upon that more than $5S,OO0O00 in
gold was again realized. Between the date
of this second issue and the present time,
more than s69.00O,O0O in gold have
been drawn from the treasury. These large
sums of gold were expended without any
of government obligations or
in any permanent way benci1ting our peo-
pie or improving our pecuniary situation.
CONDITIONS lnIt ShOUiU Attest htlen.
tion.
The financial events of the past year sug-
gest facts and conditions which should GER
tainly arrest attention.
More than one hundred and seventy-two
million of dollars in gold have been drawn
out Of the treasury during the year for
the purpose of shipment abroad or hoard
ipg at home.
While nearly one hundred and three mill
ions of this amount were drawn out dur
ing the first ten months of the year, a
sum aggregating more than two-thirds of
that amount, being about siXty-nine mill
ions, was drawn out during the following
two months, thus Indicating a marked ac-
of the depicting process with the
lapse of time.
The obligations upon which this gold has
been drawn from the treasury still
and are available for use in
the eXhau3ting operation with
shorter intervals as our perple2-ities ac
CImulate.
Conditions are certainly supervening
tending to make the bonds which may be
issued to replenish our gold less useful for
that purpose.
An adequate gold reserve is in all cir
absolutely essential to tae up
of our public credit and to the
of our high national char