The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1895-01-31
is CLEVELAND'S PLAN
SPECIAL MESSAGE ON FINANCE
SENT TO CONGRESS-.
The President Urges the Passage cI
n Bill for the Issuing of Three Per
Cent bonds, the Principal and In
terest to be Paid In Gold.

JdH OO-4uc
sent to congress the following special
message on the financial question:
10 the Senate and House Of Representa-.
yves: In my last annual message 1 com.
mended to the serious consideration Of con.
gress the condition of our national finances,
and IN connection with the subject endorsed
the plan Of currency legislation which at
that time seemed to furnish prOtectt.n
against Impending danger. This plan aas
not been approved by the congress. In the
meantime the situation has - changed and
the emergency now appears so threatening.
that I deem 1T 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 sound.
ness and avert business disaster end uni.
versal distress among our people. Whatever
may be the merits of the plan outlined In
my annual message as remedy for Ills
then existing. and as n safeguard against
the depletion Of the gold reserve then in the
treasury. am now convinced that its recep.
tion by the congress and our present ad.
vanced stage Of financial perplexity necessi.
tates additional II not different, legislation.
With natural resources unlimlt I'd in va .ietJ
and productive strength and with a people
whose activity and enterprise seek only a
fair opportunity to achieve national success
and greatness, our progress should not be
checked by false financial policy and a
Needless disregard of sound monetary laws,
nor should the timidity and fear which they
engender stand in the way Of our prosper.
ity.
1t is hardly disputed that this predica.
ment confronts US to-day. Therefore, no
one in any degree responsible for the max
Ing and execution of our laws should fail to
see patriotic duty In honestly and sincere
ly attempting to relieve the situation. Man
ifestly this effort will not succeed unless it
Is made untrammeled by the prejudice OF
0rt;~ oh; a~I I1A1
mination to resist the temptation to &C
eomplish party advantage. We may we'll re-
member that if we are afflicted with finan.
cial difficulties, all of our people, in all sta
lions Of life. are concerned, and surely
those who suffer will not receive the pro-
mo ION Of party interest as an excuse for
permitting our present troubles to advance
TO u disastrous conclusion. It is of the ut
most Importance that we approach the study
of the problem presented as free as possible
from the tyanny of preconceved opinions,
to the end that in a common danger, we
may be able to seek with unclouded vision
A Snfe and Reasonable Protection.
The real trouble which confronts us con-
slsts In lack of confidence widespread
and constantly increasing, IN the continu-
ing 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
der existing laws to procure gold, and to a
greater extent out of the impossibility Of
either keeping 1t In the treasury or can
ceiling obligations by Its expenditure aft
er 1t is obtained. 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 so issued were author
lied nearly twenty-five years ago, and are
not we'll calculated to meet our present
needs. Among other disadvantages they
are made payable in coin, instead of spe-
officially in gold, which In existing condi-
tons detracts largely and in an increasing
ratio from their desirablity as investments
this description can much longer be dis
posed Of at a price creditable to the fnan-
cial character Of our government.
The most dangerous and Irritating feat
ure OF the situation, however, remains to
be mentioned. 1t Is found in the means by
which the treasury is despoiled of the gold
thus obtained without canceling a single
government obligation, and solely for the
benefit of those who find profit in Shipping
1t abroad or whose fears induce them to
hoard it at home. We have outstanding
about $500, 900, 900 of currency notes Of the
government for which gold may be de-
manded; and curiously enough the law re-
qulres that when presented and in fact re-
deemed and paid in gold, they shall be re-
Issued Thus the same notes may do duty
Z many times In drawing gold from the treas
ury; nor can the process be arrested as
long as private parties who profit or other
wise see an advantage in repeating the
operation. More than $500, 600, 900 in these
notes have already been red ned III gold.
and notwithstanding such redemption. thew
are all still outstanding
The Gold Reserve Disappear,.
Since Jan. IT, 1904, our bonded interest.
bearing debt has been increased 500 OOO-
600 r the purpose of obtaining gold. to
replenish our coin reserve. Two issues we're
made, amounting to $5O,OOO,OOo each. one
In J nuary and the other in November. As
result Of the first Issue there was real
led something more then SIS 600, 900 OF
dollars in gold. Between that Issue and the
succeeding one IN November comprising a
period Of about ten months, rear'y S17W
100000 in gold were drawn from the treas.
ury. This mad, tie second issu, necessary
and upon that more than $58, 900, 900 in
gold was again realized. Between the date
OF tn s second Issue and the present time,
covering period Of on about two months
more than s60,0Oo,OO0 In gold have been
drawn fr m the treasury. These large
sums Of gold were expended without any
cancellation OF government obligations or
In any permanent way benef tag cur REQ
pie or improving pecuniary situation.
The financial events Of the past year suy.
gest facts ind conditions which should Ger.
ia My arrest attention. More than Sl72..
100000 III gold have been drawn out Of the
treasury during the year for the purpose
OF shipping abroad or boarding at home.
While nearly S1o3 OOO, 900 of the same were