The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1895-01-30
Cleveland on Finance.
He Recommends a Large Is
sue of Bonds, and the
Retirement of Legal
Tender Notes.

special message on the financial situ-
alton, as follows
To the Senate and The House of Rep
resentatives
In my last annual message, |
commended to the serious consider
alton of Congress the condition of
our National finance, and in con-
nection with the subject endorsed
the plan of currency legislation
which at that time seemed to furn-
iah protection against impending
danger. This plan has not been
approved by the Congress. In the
meantime, the situation has so
changed and the emergency now
appears so threatening, that l deem
it my duty to ask at the hands of
the legislative branch of the govern
ment such prompt and effective
action as will restore confidence in
our financial soundness and avert
business disaster and universal dis
tress among Our people.
Whatever may be the merits of
the plan outlined in my ANIMAL
message as remedy for ills then
existing and as safeguard against
the depletion of the gold reserve
then in the Treasury, I am now
convinced that its reception by
Congress and our present advanced
stage of advanced perplexity neces-
state additional or different legis-
lation.
The President lays down the propo-
sition that we are suffering from the
results of false financial policy and
that the real trouble which confronts
us consists in a lack of confidence,
widespread and constantly increas-
ing, in the continuing ability or
disposition of the government to pay
it's obligations The only way, he
says, left open to the government for
procuring gold is by the issue and
sale Of it's bonds payable specifically
in gold.
The most dangerous and irritat-
ing feature of the situation, Mr..
Cleveland says, is found in the
means by which the Treasury is
despoiled of the gold thus obtained
without cancel|ing a single govern
ment obligation, and solely for the
ben. it of those who find profit in
shipping it abroad or whose fears
induce them hoard it at home.
We have outstanding about $780,
oOo,o 900 of currency notes Of the gov
ernment for which gold may be de-
manded 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 many times
in drawing gold from the Treasury;
nor can the process be arrested as
long as private parties, for profit or
otherwise, see an advantage in re-
peating the operation.
The aggravations that must inevi-
tably follow the present conditions
and methods will certainly lead to
misfortunes and loss. not only to our
National credit and prosperity and
financial enterprise, but to those Of
our people who seek employment as
means of livelihood and to those
whose capital is their daily labor. 1t
will hardly do to say that a simple
increase of revenue will cure our
troubles with the apprehension now
existing and constantly increasing, as
our financial ability does "ot rest
upon a calculation of our revenue.
cannot see that differences of op-
iniou concerning the extent to which
silver ought 10 be coined or used in
our currency should interfere with
the connsels of those whose duty
it is to rectify evils now appa,
rent in our financial situation.
They have to consider the ques-
ton of National credit and the con
sequences that will follow from its
collapse. Whatever ideas may be
insisted upon as to silver or bi-
metalism, the proper solution of the
question now pressing upon usonly
requires recognition of gold, as
we'll as silver, and concession of
it's importance, rightfully or wrong
fully acquired, as basis of Ma
tional credit-a necessity of an
honorable discharge of our obi ga,
tions payable in gold and a badge
Of solyency.
do not understand that the real
friends of silver desire a condition
that might follow inaction or ne
glect to appreciate the meaning of
the present exigency, if it should
result in the entire Punishment of
gold from our financial and curren-
cy arrangements.