Frederick citizen., 1895-02-01
MESSAGE TO CONGRESS
Prompt Action Requested
To Avert Disaster.

Mr.. Cicveiand Asks for an Eesao Of
o Per Gent. Gold Bonds sf smau
Denemiastion-Not UnGriendly 70
Silver, bat Unwilling T0 See Gold
BAH.shed frem Our Country -
Views Of Senators and Representa-
sivrs-Whae tie Silver Men Say
Washington, Jan. zs.-The president
in his message TO congress on the A.
naneial situation says in part: What
ever may be the merits OF the plan
outlined in my annual message as q
remedy for ills then existing. and as
q safeguard against the depletion of
the gold reserve then in the treasury,
! am now convinced that its reception
by the congress and our present ad-
ranced stage Of financial perplexity
necessitates additional or different leg
tslation.
The real trouble which confronts
us consists in g hack of confidence
widespread and constantly increasing
in the continuing ability or disposition
Of the government to pay its ohliga-
lions in gold. The emily way left open
70 the government for procuring gold
Is By the issue and sale Of United
States bends. The only bonds that can
be % issued were authorized nearly
twenty-five years ago, and are not
well calculated to meet our present
needs. Among other DISADVANTAGES
they are made payable in coin, instead
OF specifically in gold, which. in exist
Ing conditions. detracts largely and
In an increasing ratio frem their de-
sira bihty as investments
The most dangerous and irritating
feature Of the situation is found In
the means by which the treasury 10
oespoiled OF the gold. We have out
standing about Ss0o, 100000 Of 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 shall be reissued
Inus the same notes may do duty
many times in drawing gold from tho
treasury. More than $3.50, ,eos, zoe in
these notes have already been re-
deemed In gold and. notvithstanding
such redemption, they are still cut
standing"
He says our bonded interest-bearine
debt has been increased s1os 900 900 In
the last year for the purpose of obtain
Ing gold to repienish our coin reserve
and that this large sum was expended
without any cancellation of govern
ment obligations or In any permanent
way benehWing our people or innprov.
Ing our pecuniary situation.
More than :172, 900 900 In gold hav.
been drawn out OF the treasury during
tne year for the purpose Of shipment
abroad or boarding at home. while th.
Sohga'ions upon which the gold was
drawn out are still outstanding and
are aVaiiahle for use In repeating the
exhaustive operation.
our gold reserve has again reached
such stage Of dimunition as to re-
quire Its speedy reinforcement. and It
VIII hardly do to say that a simple
increase OF revenue will cure our
trou2les.
Whatever IDEAS may be insisted
upon as to silver or blnetalisrn.
proper solution OF the question now
pressing upon US only requires q rec
osnition Of gold as well as silver and
a concession Of its Importance, right
tully or wrongfully acquired, as
basis OF national credit. a necessity in
e1e honorable discharge of our obliga-
lions payable in gold and q badg. Of
soivency. While I am not unfriendiy
TO silver, and while I desire to see n
recognized to such an extent as is con.
sistent with financial safety and IN.
preservation OF national honor and
credit. am not willing to zee gold
entirely hnnished from our currency
and finances. To avert such a conse-
quence l believe thorough and radics,
remedial legislation should be pronnt-
ly passed. I therefore beg the con-
gress to give the subject immediate
attention"
Mr.. Cleveland believes that the Sec
retary Of the treasury should be au-
thorized to issue bonds for the pur-
pose Of procuring q sufficient gold re-
serve, but says that We should be re-
lisved from the hunnilau7c process
or Issuing bonds to procure eoid from
which the government or pecpla er.
me- r~n"s+~d. Tie then continues.
The principal and interest Of the..
bonds should be payable on their face
IN gold, because they should be sold
emily FOR gold or IT'S representative and
because there would now probs hlv be
oifnculty In fSvorsbly disposing Of
BONDS not containing this stipula ton
l suggest that the bonds be Issued in
denominations OF $50 and $50 AID their
mulapies,, and that they bear Interest
~ 4 rate not exceeding per GEN. Der
annum. l do not see why they should
not be payable nfty years from their
es.s.
These bonds under existing l.vr
could be deposited by national banks
az securit! for circulation, and yuch
banks should be allowed to issue circu-
istion up to the face value Of these
or any other bonds so deposited, except
bonds outstanding bearing only 2 per
cent. interest, and which sell in :he
market at less than par. National
banks should not be allowed 10 lake
out circulatin notes OF a less Senomi-
nstion than $40, ana when such a.
are now outstanding reach the treas
ury, except for redemption and retire
ment. they should be cancelled ana
notes OF the denomination of $40 and
upward issued in their stead. Silver
certificates Of the denomination of SIN
and upward should be replaced by GER
tiiicates Of denominations under $40.
AS constant means for the main
tenance Of a reasona BILE supply of gold
In the treasury our duties on imports
should be paid in gold, allowing all
other dues to the government to be
PAID IN any other form Of money"
In conclusion Mr.. Cleveland con.
fesses his reluctance to issuing more
bonds and assures congress of his anx-