The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1895-02-01
SPECIAL MESSAGE.
The President Sends One to Con-
gress on Financial Matters.
THE ISSUE and SALE OF BONDS.
An Adequate Cold Reserve Declared to BE
Essential to Our Public Credit-Et-
feetive Congressional Action
Asked-Suggestions.

yesterday sent 10 congress the 1OlAON'
ing special message on the financial
question:
To the Senate and House Of Representatives
In my last annual message commended to the
serious consideration of congress the condition
of our national finances and in connection with
this subject Endorsed the plan Of currency legis-
lation 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 threaten
ing that deem il 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 soundness and avert
business disaster and universal distress among
our people.
Whatever may be the merits Of the plan out
lined in my annual message as remedy for
ills then existing and a safeguard against
the depletion OF the gold reserve then in the
treasury. / am now convinced that its rejection
by the congress and our present advanced stage
of financial Perplexity necessitates additional
or different legislation.
With natural resources unlimited in varied
productive strength and with people whose
activity and enterprise seek only fair oppor-
tunity to achieve national success and great
ness, our progress should not be checked by a
false financial policy and needless disregard
Of sound monetary laws nor should the timidity
and fear which they engender stand in the way
Of our prosperity.
It is hardly disputed that this predicament
oonfronts US to-day. Therefore. no one in any
degree responsible for the making and execu-
ton Of our laws should fail to see patriotic
duty in honestly and sincerely attempting to re-
lieve the situation. ManifeStly this effort will
not succeed. unless it is made untTammeled by
the prejudice of partisanship and with stead
fast determination to resist the temptation to
accomplished party advantage. We may well
remember that il we are affected with financial
difficulties all our people in all stations of life
are concerned and surely those who suffer will
not receive the promotion OF party interests as
an excuse for permitting our present troubles
TO advance to a disastrous conclusion.
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 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 existing conditions, detracts
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 disposed of at price credit
able to the financial character Of our govern
ment
The most dangerous and irritating feature OF
the situation, however remains to be men
toned. II is found in the means by which the
treasury is despoiled of the gold thus obtained
without cancelling a single government obliga-
ton and solely for the benefit OF those who find
profit in shipping il abroad or whose fears in
duce them TO hoard il at home.
We have outstanding about S5OOOOO,OD0 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. Thus the same notes may do duty
IA
nor can the process be arrested as long as pri-
vate parties who profit by it or otherwise see
an advantage in repeating the operation. More
than $500. 600 in tn csc notes have already
been redeemed in gold and. Notwithstanding
such redemption. they are still outstanding.
Since the 18th day Of January, 1894, our bond
ed interest bearing debt has been increased
tl00OOOO00 for the purpose of obtaining gold to
replenish our gold reserve. Two issues were
made, amounting 900 each-one in Janu-
airy and the other in November As a result of
the first issue there was realized something
more than S5s 100000 in gold. Between that
issue and the succeeding one in November com
prisinga period Of ten months, nearly SlO3O0O,O0O
In gold were drawn from the treasury. This !
made the second issue necessary and upon that |
more than SjS.0l0001 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 S69. 10000 in gold were /
ment obligations or in any permanent way |
benefting our people or improving our pecu-
mary situation.
The financial events of the past year Sug- ]
yest facts and conditions which should certain !
ly arrest attention. More than S172,0OOOJO in /
gold have been drawn out of the treasury dur /
ing the year for the purpose OF shipping abroad /
Or boarding at home. While nearly s1O3,OOO0O1 |
Of the same were drawn out during the first /
ten months Of the year, sum aggregating /
more than two-thirds OF that amount being /
about S69.OOO.O0O. was drawn out during /
the following two months, thus indicating a |
marked acceleratiOn Of the depicting process |
with the lapse Of time. The obligations upon |
which this gold has been drawn from he treas
ury are still outstanding and are available for |
use in repeating the exhausting operation at
shorter intervals as our perplexities accumu-
late.
Conditions are certainly supervening to make
the 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 upholding
Of our public credit and to the maintenance of
our high national character. Our gold reserve
has again reached such a stage of diminution /
as to require its speedy reinforcement.
The aggravations that must inevitably follow
present conditions and methods will certainly
lead 10 misfortune and loss not only to our ma
uonal credit and prosperity and TO financial
enterprise. but to those Of our people who seek
employment as a means OF livelihood and TO
those whose only capital is their daily labor.
It will hardly do to say that simple increase
OF revenue viii cure our troubles. The appre-
hension now existing and constantly increasing
as to our financial ability does not rest upon
calculation Of our revenue. The time has passed
when the eyes of investors abroad and our /
people at home we're fixed upon the revenues
Of the government. Changed conditions have
attracted their attention to the gold of the gov
eminent. There need be no fear that We can
not pay our current expenses with such money
as we have There is now in the treasury
comfortable surplus OF more than SG3.O00OOO.
but it is not in gold and therefore does not
meet our difficulty
Whatever ideas may be insisted on as to sill
yer or bimetalliSm. proper solution of the
question now pressing upon US only requires a
recognition Of gold as well silver, and 4
concession Of its importance. rightfully or
wrongfully acquired. a basis OF na-
uonal credit necessity in the honorable
discharge Of our obligations payable IN gold
and a badge Of solvency. I do not understand
that the real friends Of silver desire cOndi-
ton that might follow inaction or neglect to !
appreciate the meaning Of the present ext .
gency- if it should result in the entire Danish
aent OF gold from our financial and currency
arrangements.
Besides the treasury notes which certainly
should be paid IN gold amounting to nearly
S50OO0O0Oo there will fall due in 1904 sIO1OO1OpO
Of bonds issued during the last year. for which I
We have received gold, and in 1877 nearly $500
100000 Of per cent bonds issued in 1877. Shall !
the payment Of these obligations in gold be re-
pudiated? II they are 10 be paid in such a | !
manner as the preservation of our national
honor anu national Solvency demands. we
should not destroy or even imperiI our ability
70 supply ourselves with gold for that pur- Z
pose ,
While 1 am not unfriendly 70 silve-. and