Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-02-09

CLEVELAND TO CONGRESS-
He Abandons the Carlisle Cur
rency System.
Asks Authority for a New Issue
Of Gold Bonds.
Dinacnlties Confronting the Treasury De-
partment Under the Resumption Act
President Thinks IL Impossi-
bic tn Make Another Fa-
vorabie Issue With
out Legislation.

ffoohhAh NRhs 80
sent to 10Th houses OF congress today
a message on the financial question
withdrawing his support from the plan
outlined In the Carlisle bill and outlin-
ing the only policy which seems to him
now possible TO maintain the gold re-
serve. The message is lengthy and
clearly defines the presidents position.
Ile says: IAN emergency now ap-
pears so threatening that deem
II my duty to ask at the
hands OF the legislative branch or
government such prompt and effective
action az will restore confidence in our
financial %soundness and avert business
disaster and universal distress among
our people. Whatever may be the mer-
its Of the plan outlined In the annual
message as a remedy for Ills then ex-
listing and as "A safeguard against the
depletion OF thegold reserve then In the
treasury. / am now convinced that our
present advanced stage OF financial
perplexity necessitates additional OF
different legisla don.
The real trouble which c%onfronts us
consists Of lack OF confidence, wide
spread and constantly increasing IN
the ability or disposition of the gov
eminent to pay It's obligations In gold.
This lack Of confidence grows To some
extent out OF pe.lpable and apparent
embarrassment attending h e efforts or
the government under existing laws
to procure gold and to a great extent
out OF the impossibility Of either keep
ing II I'm the treasury or canceling OBJ
tl-,,tax. -. tie a~unandttnrA after IL IL
obtained. The only way left open for
the government 90 procure gold Is py
issue and sale OF its bonds. Only bonds
that can be issued were authorized
twenty-five years ago and are
not well calculated to meet u present
needs. Among other Disadvantages
they are made payable In coin instead
of specifically in gold. which under ex-
lsting Conditions detracts largely ana
Nm an increased ratio from their desira-
bility az investments. Ii IL by no
means certain that bonds OF this de-
scription can much longer be disposed
OF at a price creditable 10 the financial
character OF our government. II
most dangerous and irritating feature
II the situation. however, remains TO
De mentioned. 1t Is found In the means
by which the treasury is dispossessed
Of gold thus obtained without cancel
ing a single government obligation and
solely for the benefit OF those who find
profit i'm shipping il abroad or whose
fears induce them 10 hoard 1t at home.
We have outstanding about
$500. 900. 900 Of currency notes OF the
government for which gold may be de-
handed: and curiously enough the law
requires that when presented and In
fact redeemed and paid In gold they
shall be reissued. These same notes may
do duty many times I'm drawing gold
the treasury. More than 1900, oc0.-
300 in these notes have already been
redeemed In gold and Notwithstanding
such redemption there are more still
outstanding. on the 18th day OF jan
uary, 1894. our bonded interest bearing
debt had been increased $lo0. 0Oe, 900 for
the purpose Of obtaining gold to replen-
ish the coin reserve. Two Issues were
made amounting to $50. 000, 900 each, one
in January and the other In November.
AS a result OF the first issue there was
realized something more than $5s 5000
100 in gold. Between that issue and the
HuCcetUlTK ont III
ing a period Of about ten months,
nearly sos. 00o, 900 of gold were drawn
from the treasury. This made a second
issue necessary and upon that more
than $50. 000. 900 OF gold was
again realized. Between the date
Of this second issue and the
present time, covering a period OF only
about two months, more thar s6s,ooO,0o
dollars in gold have been drawn from
the treasury. These large sums of gold
were expended without any cancella-
ton of government obligations or in
any permanent way benefiting u peo-
pie or improving u pecuniary stu
alton.
The financial events OF the past year
suggest facts and conditions which
should certainly arrest attention. More
than S172, 000, 900 In gold have
been drawn out OF the treasury during
the year for the purpose OF shipment
abroad or boarding at home. While
nearly sos, 000. 900 of this amount were
drawn out during the first ten months
of the year. aggregating more than
two thirds of that amount. about &c.,
900. 900, was drawn out during the fol-
IOWlnR TWO tlOIltlSs mus tholCdtlu6 a
marked acceleration OF the depicting
process with the lapse Of time. The
obligations upon which this gold has
been withdrawn from the treasury are
still outstanding and are available for
repeating the e~xhausting operation
at shorter intervals as our p~erplexities
accumulate. Conditions are certainly
supervening tending to make bonds
which may be issued to replenish our
gold less useful for that purpose. An
adequate gold reserve Is in all circum-
stances absolutely essential to the up
holding OF our public credit and to the
maintenance OF our high national char
acter. Our gold reserve has again
reached such a stage Of diminution as
to require Its speedy reinforcement. Az
gravations that must inevitably follow
the present conditions and methods Will
certainly lead to misfortune and loss
not only to our national credit and pros
perity and financial enterprise. but TO
those OF our people who e employ
ment as a means Of livelihood and 10
those whose only capital Is their daily
labor. II will hardly do to say that a
rlIipic iuCfedsS VI IcNcHuc VII SoiS WI
troubles. The apprehension now exist
Ing and constantly Increasing as to our
financial ability does not rest upon the
calculation of our revenue. The time
has passed when the Eyes OF investors
abroad and our people at home were
fixed upon the OF the govern
ment. Changed conditions have at
tracted their attention to the gold OF
the government. There need be no fear
that we cannot pay our current ex-
penses with such money Rs we have
There Is now in the treasury a comfort
able surplus Of more than SIS. 600. 900. but
It Is not In goli and therefore does
not meet our difficulty. Our differences
&c opinion concerning the extent 10
which silver ought to be coined or used
In our cur, sncy should not interfere
with the counsels Of those whose duty
II Is to rectify the evil now apparent In
our financial situation.
Whatever ideas may be insisted upon
as to silver or bimetaliism. a proper So
luton Of the question now pressing
upon US requires the recognition of
gold as well as silver and a concession
Of Its Importance. rightfully or wrong
fully acquired. as the basis Of national
credit. a necessity In the honorable dis.
charge OF our obligations payable In
gold. and q badge Of solvency. ia
not understand that the real friends OF
silver desire the condition that might
follow inaction or neglect 20 appreciate