New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-29

ASKING AUTHORITY FOR THE SECRETARY OF
THE TREASURY TO ISSUE THREE PER CENT
BONDS TO Run FOR FIFTY YEARS
LEGALTENDER NOTES AND SMALL.
BANK NOTES TO BE REDEEMED
AND RETIRED 80 PROMPT AC-
TIoN NECESSARY TO HELP
THE TREASURY OUT
OF IT'S PLIGHT
Washington Jan. 2S.-The President to-day
sent to Congress the following special message on
the financial question::
To the Senate and House Of Representatives:
In my last annual message commended to the
serious consideration OF the Congress the consid-
Grafton Of our National finances and in connec-
ton with the subject indorsed the plan of cur
rency legislation which at that time seemed to
furnish protection against impending danger.
rms plan has not beer approved by the Congress.
In the mean time the situation has so changed
that deem II my duty T. ask a the hands OF the
legislative branch of the Government such
prompt and effective action as Will restore conf
dence In our financial soundness and avert busi-
ness 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 de-
pleion Of the gold reserve then In the Treasury.
] am now convinced that its reception by the
Congress and our present advanced stage OF
financial perpeXI.y necessitatc additional or dif-
ferent legislation.
With natural resources unlimited in variety
and productive strength. and with a people
whose activity and enterprise seek only fdlr
opportunity TO achieve National success and
greatness our progress should not be checked by
q false financial policy and needless disregard OF
sound monetary laws. nor should the timidty
and fear which they engender stand In the way
OF our prosperity.
II is hardly disputed that this predicament
confronts us to-day Therefore, no one in any
degree responsible for the making and execution
Of our laws should fall 10 see a patriotic duty in
honestly and sincerely attempting to relieve the
situation.
Manfestiy this effort will not succeed unless il
is made untrammelled by the prejudice OF part-
sanship and with a stenlfast determination to
resist the temptation 10 accomplish party advan-
tage. We may we'll remember that II we are
threatened with financial difficulties all our peo-
pie In every station Of life are concerned. ana
surely those who suffer VIII not receive the pro-
motion OF party interests as an excuse FOR per-
hitting our present troubles TO advance TO a
disastrous conclusion.
II IL also Of the utmost Importance that we ap-
proach the study Of the problems presented as
free as possible from the tyranny Of precon-
ceived opinions. to the end that In common dan
ger We may be- able TO seek with unclouded vision
"A safe and reasonable protection.
WIDESPREAD LACK OF CONFIDENCE.
The real trouble which confronts us consists in
n lack Of confidence widespread and constantly
Increasing. In the continuing ability or DISPOSE
ton of the Government 10 pay its obligations In
gold
This lack OF confideu,e grows TO some extent
out OF the papable and apparent embarrassment
attending the efforts OF the Government under
existing laws TO procure gold. and TO a greater
extent out of The imposs!blity OF either keeping
IT In the Treasury or canceIling obligations by
rs expenditure after II Is obtained.
The only way left 10 the Government for pro-
curing gold l. by the issue and sale II It's bonds.
The only bonds that can be issued were author
lzed nearly twenty-five years ago. and are not
we'll calculated 70 mee, our present needs. Among
other Disadvantages they are made payable in
coin instead II specifically In gold. which in ex-
isting conditions dctracts largely and In an in
creasing ratio from their desirabnty as invest
ments II Is by no means certain that bonds OF
this des, ripton can much longer b" disposed OF
AT a price cr"ditabe 10 the inancltl character ot
our Government
r. most dangerous and irritating feature Of
the situation. however. remains 10 be mentioned.
II is found I'm the means by which the Treasury
is despoilod Of the gold thus obtained without
cancclllng "A single Government obligation. ana
solely FOR the benefit Of those who md proht IN
shipping 1t abroad or whose fears induce them
10 hoird@it at home. M
w. have. outstanding about five hundred mill
ions u currency notes OF the Government. ior
which gold may be- demanded; ana cutiousiS
enough the law requires that wnen presented anu
I'm fact redeemed and paid in gold they shall be
reissucd
INCREASE OF THE BONDED DEBT.
Thus the same notes may DO duty many times
In drawing gold from the Treasury: nor can the
process be arrested as long as private parties
for profit or others see advantage In repeat
ing IN. operation More than three hundred
millions of dollars in these notes have already
been redeemed In gold. and Notwithstanding such
redemption they are still outstanding
Since the 18th of January. 1894. our bonded In
bearing debt has been increased soOO 900
for the purpose OF obtaining gold To replensh
our coin reserve.
Two issues were made. amounting 10 hfy mill
ions each--one In January. and the other IN NO
vember Az a result Of the first issue. there was
realized something more than hfty-eight millions
Of dollars In gold. Between that issue ana the
succeeding one I'm November. comprising period
Of about ten months. nearly one hundred ana
thrc" millions of dollars In gold were Drawn from
the Treasury.
This made the second issue necessary. ana
upon that more than So. 900 In gold was again
realized Between the date OF this second issue
and the present time covering period o1 ohly
about two months. more than $69.OOOOOo OF gold
have been drawn from the Treasury. ,..
These large sums Of gold were expended WIN WIN
out any CanCtlldtl'H VI wv
or in any permanent way beneflting our people
or improving our pecuniary SITUATION
THE OUTFLOW OF GOLD
The financial events OF the last year suggest
facts and conditions which should certainly arrest
attention More than sl22.000.0oo In gold have
been drawn out Of the Treasury during the year
for the purpose OF shipment abroad or boarding II
at home While nearly $lO3.O 900 Of this amount
were drawn out during the first ten months OF
the year. sum aggregating more than two
thirds OF that amount. being about s6sOooOoo. was
drawn out during the following two months. thus
Indicating a marked acceeration OF the depicting
process with the lapse OF time
The obligations upon which this soid mas peeh
drawn from the Treasury are still outstanding
and are available for use in repaying the EXHAUST
ing oneration with shorter intervals as our per-