Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1895-01-31
PRESIDENTS MESSAGE
A Special Letter to Congress
on the Financial
Question.

The continued depletion of gold
from the reserve has become so
alarming as to move President
Cleveland to send a special message
to congress concerning it. In his
message he outlines a plan for the
relief of the country, the principle
points of which seem to be to sell
gold interest bearing bonds in large
quantities. The president in part
says:
"The real trouble which con-
fronts us consists in lack of con-
fdence, widespread 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 palpable and apparent
embarrassment attending the gov
ernment under the existing laws in
procuring gold and to a greater ex-
tent out of the impossibility of
either keeping it in the treasury or
canceling obligations by its ex-
penditure after it is obtained. The
only way left open to the govern
ment to procure gold is by the issue
and sale Of bonds. The only bonds
that can be issued were authorized
nearly rs years ago and are not
well calculated to meet Our present
needs. Among other disadvantages
they are made payable in coin, in
stead of specifically in gold, which
in existing conditions detracts
largely, and in an increasing ratio,
from their desirability as invest
ments. 1t is by no means certain
that bonds of this description can
be much longer disposed of at a
price creditable IS tlle financial
character of our government.
The most dangerous and irritat-
ing feature of the situation, how
ever, remains to be mentioned. 1t
is found in the means by which the
treasury is despoiled Of gold,
thus obtained without cancelling
a single government obligatin 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, 900 currency notes
of the government, for which gold
may be demanded, and, curiously
enough, the law requires that when
presented and, in fact, redeemed
and paid in gold they may be re-
issued. Thus the same notes may
do duty many times, drawing gold
from the treasury, nor can the pro-
cess be arrested as long as private
parties who, in profit or otherwise,
see advantage in repeating the op-
Grafton. More than $500, 900, 900
of these notes have already been
redeemed in gold, and notwithstand-
ing such redemption, they are still
outstanding, Since the 18TH OF
January, 1894, our bonded interest
bearing debt has been increased
500, 900, 900 for the purpose of OBJ
tanning gold to replenish our gold
reserve. Two issues were made,
amounting to $50, 900, 900 each,
one in January and the other in
November. As a result of the first
issue there was realized something
more than $4,000, 900 in gold.
Between that issue and the succeed
ing one in November, comprising a
period of about 10 months, nearly
$Io3, 900, 900 in gold was drawn
from the treasury. This means a
second issue necessary, and upon
that more than SIS, 900, 900 of gold
was again realized. Between the
date of this second issue and the
present time, covering period of
only about two months, more than
500, 900, 900 in gold was expended
without cancellation of government
obligations or i'll any permanent
way benefting our people or i'm
proving our pecuniary situation.
Financial events OF the past year
suggest facts and conditions which
should certainly attract attention.
More than $I72, ,ooo, 900 in gold has
been drawn out of the treasury dur
ing the year for the purpose of ship
ping abroad or boarding at home.
While nearly $Io3, 900, 900 of the
same was drawn out during the
first 10 months of the year, a sum
aggregating more than two-thirds
that amount, being about 500, ,ooo,-
600 was drawn out during the fol.
lowing two months, thus indicating
a marked acceleration Of the depict.
ing process during that lapse o.
time. The obligations upon which
this gold has been drawn from the
treasury are still outstanding, avail.
able for use, repeating the exhaust.
ing operations, with shorter inter.