Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-01-29
THE PRESIDENT
In His Message to Congress on
the Financial Situation,
Practically Withdraws His Support
from Plan Of Sec. Carlisle,
And Outlines What. In His Judgment. Is a
Better Scheme.

sent to both. Houses of Congress, today, a
message on the financial situation, sub
stantially Withdrawing his support from
the plan outlined in the Carlisle bill and
outlining the fonly policy which seems to
him now possible to maintain the gold
reserve. The message was as follows:
To the Senate and House of Representa-
tives:
In my last annual message commended
to the serious consideration of Congress
the condition bf 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 has
not been approved by Congress.
In the meantime the situation has SO
changed, and the emergency now appears
SO threatening that deemed 1t my duty
to ask at the hands of the legislative
branch of the government such prompt
and effective action as will restore conf
dence in our national soundness and avert
business disaster and universal distress
among our people.
Whatever may be the merits of the plan
outlined in my annual message as a
remedy for the ills then existing and as
a safeguard against the depletion of the
gold reserve then in the treasury, con-
WINGED that its reception by the Congress
and our present advanced stage Of finan-
cial peplexity necessitates additional or
different legislation.
No one in any degree responsible for
the making and execution of our laws
| should fail to see u patriotic duty in
honestly and sincerely attempting to re-
lieve the situation.
Manifestly the object will not succeed
unless it is made untrammelled by the
prejudice of partisanship and with a
steadfast determination to resist the
| temptation to accomplish party advan-
| tage.
| We may well remember that if we are
threatened with financial difficulties in
which our people in every station of life
are concerned-and surely those who suf-
fer will not put forward the promotion of
party interests as an excuse for permit
ting our present troubles to advance to a
disastrous conclusion-it is also of the
utmost importance that we approach the
study of the problems presented as free as
possible from the tyranny of preconceived
opinion, to the end that in the face of
common danger we may be able to seek
able protection.
The real trouble which confronts us
consists in lack of confidence wide
spread and constantly increasing, in the
continuing ability or disposition of the
government to pay its obligations in gold
This lack of confidence grows to some
extent out of the palpable and apparent
embarrassment attending the efforts of
Al, 1oxt- f,,
procure gold and to a greater extent out
of the impossibility of either keeping it
in the treasury or cancelling obligations
by its expenditure after it is obtained.
The only way left open to the government
for procuring gold is by the issue and sale
of United States bonds. The only bonds
that can be so issued were authorized
nearly % 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 de
tracts largely and in an increasing ratio
from their desirability as investments.
1t is by no means certain that bonds of
this description can much longer be dis
posed of at price creditable to the finan
cial character of our government.
/ The most dangerous and irritating fea
ture of the situation however, remains to
be mentioned. 1t is found in the means
by which the treasury is despoiled of gold
thus obtained without cancelling single
government 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
about $500, 900, 600 of currency notes of
the government for which geld may be
demanded, and curiously enough, the
law requires that when presented and in
fact redeemed and paid in gold, they shall
be reissued. Thus, the same notes may
do duty many times in drawing gold from
the treasury, nor can the process be ar
rested so long as private parties, for profit
or otherwise, find advantage in repeating
the operation. More than 800 900, 600 of
dollars in these notes have already been
redeemed in gold, and Notwithstanding
such redemption they are still all out |
standing.
Since the 18th day of July, 1894, our
bonded interest bearing debt has been in |
creased 500, 900, 900 for the purpose of
obtaining gold to replenish our coin re
serve Two issues were made amounting |
to $50, 900, 900 each, one in January and
the other in November As result of
the first issue there was realized some
thing more than sos, 200, 900 in gold. |
Between that issue and the succeeding one |
in November comprising period of about |
10 months, nearly SOB. 600, 900 in gold |
were drawn from the treasury. This made |
the second issue necessary, and upon that |
more than $5S, 600, 900 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, 600, 900 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 benefitting our people or
improving our pecuniary situation The /
financial events of the past year suggest /
facts and conditions which should GER /
tainly arrest attention. More than s172, /
900. 900 of gold have been drawn out Of
the treasury during the year for the pur
pose of shipment abroad or boarding at /
CONTINUED on I'd page.l