The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1895-02-02
CLEVELAND'S PLAN
SPECIAL MESSAGE On FINANCE.
SENT TO CONGRESS.
The President Urges the FananEe ri
n Bill for the Issuing of Three
Per Cent Bonds, the I'rinci-
pal and Interest to Bc
Paid in Gold.
4. BILL BASED on THE MESSAGE.
MIR. Springer Introduces a Bill ia
Carry into Effect tho Presidents
Recommendation.

SCnI ~ COuSItSS luc lOtlONIuS epCSl1l
snessage on the financial question:
To the Senate and House OF Representa-
tives: In my last annual message I COM
mended to the serious consideration Of con-
gress the condition of our national finances.
and in connection with the subject endorsed
the plan Of currency legislation which at
that time seemed to furnish protection
against impending danger. This plan oas
not been approved by the congress. In the
meantime the situation has so changed and
the emergency now appears so threatening.
that l deem 1t my duty to ask at the hands
Of the legislative branch Of the government
such prompt and effective action as Will
restore confidence In our financial sound
ness and avert business disaster and uni
versal distress among our people. Whatever
may be the merits Of the plan outlined In
my annual message as Il remedy for Ills
then existing, and as Il safeguard against
the depletion of the gold reserve then in the
treasury, l am now convinced that its recep-
ton by the congress and our present adj
vanced stage Of financial perplexity necessi-
tates additional, il not different, legislation.
With natural resources unlinlit ID In va .ieti
and productive strength and with a people.
whose activity and enterprise seek only a
fair opportunity to achieve national success
and greatness, our progress should not be
checked by a false financial policy and a
needless disregard of sound monetary laws.
HOT Slbulu Clle ClIlIully anu lear WHICH luey
cngcnder stand in the way Of our prosper.
ity.
1t is hardly disputed that this predica.
ment confronts us to-day. Therefore, nd
one in any degree responsible for the max
ing and execution of our laws should fail tc
see a patriotic duty in honestly and sincere
~ attempting to relieve the situation. Man.
ifestly this effort will not succeed unless it
is made untrammeled by the prejudice Of
partisanship and with a steadfast deter
mination to resist the temptation to ac-
complish party advantage. We may well re
member that II we are afflicted with fnan.
cial difficulties, all of our people, In all sta.
lions of life, are concerned, and surely
those who suffer will not receive the pro-
mo,lon of party interest as nn excuse for
permitting our present troubles to advance.
to a disastrous conclusion. 1t is Of the ut.
most Importance that we approach the study
of the problem presented as free as possible
from the tyanny of preconceived opinions,
to the end that, in a common danger, we
may he able to seek with unclOuded vision
A Safe and Reasonable Protection.
The real trouble which confronts us con-
sists in a lack of confidence, widespread
and constantly increasing, IN the continu-
ing ability or disposition of the government
to pay It's obligations in gold. This lack
of confidence grows to some extent out OF
the palpable and apparent embarrassment
| attending the efforts of the government I'M
der existing laws to procure gold, and to a
greater extent out of the impossibllity of
either keeping it in the treasury or can
ceiling obligations by its expenditure aft
er it is obtained. The only way left open
to the government for procuring gold is
by the issue and sale of bonds. The only
bonds that can be so issued were author
ICED nearly twenty-five years ago, and. are
not well calculated to meet our present
needs. Among other disadvantages they
~~~ ,~~Io ,H-r,nI11 To- -~i~ ~-A-n - ~-@
officially in gold, which in existing condi-
lions detracts largely and In an increasing
ratio from their desirabliity as Investments.
1t is by no means certain that bonds OF
this description can much longer be diss
! posed Of at a price creditable to the inan-
cial character OF our government.
The most dangerous and Irritating feat
ure Of the situation, however. remains to
be mentioned. It is found in the means by
which the treasury is despoiled Of the gold.
thus obtained without canceling a single
government obligation, and solely for the
benefit of those who find profit In shipping
it abroad or whose fears induce. them to
about $500, 0 $1,000 of currency notes of the
government for which gold may be de-
handed; and curlously 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
AA0Ay AAO ~ uAN"AAS 6OIu lAc lIc0o
ury; nor can the process be arrested as
long as private parties who profit or other
wise see an advantage in repeating the
operation. More than $500, OOO,O 200 in these
notes have already been redeemed In gold,
and Notwithstanding such redemption, they
are all still outstanding.
The Gold Reserve Disappears.
Since Jan. II. 1894, our bonded Interest.
bearing debt has been increased $1OO.OOO,-
600 for the purpose of obtaining gold, to
replenish our coin reserve. W. issues were
made. amounting to $50. 600, OO) each. one
in January and the other in November. AS
a result Of the first issue there was real
ICED something more than SIS. 600 900 OF
dollars in gold. Between that sssle and the
succeeding one in November, COMPRISING q
period of about ten months, near'y $1OO,.
100000 in gold were drawn from the treas
ury. This made tie second issu, necessary,
and upon that more than $685. COO. 600 in
gold was again realized. Between the date
Of this second issue and the present time,
covering a period of only about two months,
more than 500, O00,O 600 in gold have been
drawn from the treasury. These large
sums of gold were expended without any
cancellation Of government obligations or
In any permanent way bench tirg ur REQ
pie or improving our pecuniary situation.
The financial events of the past year sug-
gest facts and conditions which shoulds GER
ta'nly arrest attention. More than '$172,-
COG, COO In gold have been drawn out Of the
treasury during the year for the purpose
Of shipping abroad or boarding at home.
While nearly $1US. ONO. 900 Of the same wire
drawn, out during the first ten months OF
the year. a sum ag 'e "ating worc t"an
two-!hirds of that am ,rnt. leing about
$50, eco, 600, was drawn cut curing tie TO-.
lowing two months, thus indicating q
marked acceleration of the depicting pro-
cess with the lapse CT time. The rb isations
upon which this gold has heen drawn from
the 'reasury ara still ou- staining, end re
available COR use IN repeating the exhaus.
pl"xlties accumulate and omit ms re GER
tainly superveniag, tendi'g to make the
bonds which may be issued to replenish
our gold less use 'ul for that purpose. Al
adequate gold reeve is in all circum-
stances absolutely essential to the uphold.
ing Of our public credit and to the main
tenance Of our high national character.
Our gold reserve has again reached such .
stage Of diminuti0n as to require
Its Speedy ReinfOrceme emit.
The aggravations that must Inevitably fol-
low present conditions and methods
will certainly lead to misfortune and
loss, not only to our national credit and
prosperity and to financial enterprise, but
to those of our people who seek employment
as q means of livelihood and to those whose
only capital is their daily labor, 1t will
hardly do to say that a simple increase of
revenue will cure our troubles. The appre.
tension now existing aud constantly In