Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1895-01-31
SPECIAL MESSAGE.
The President Sends One to Con-
gross on Financial Matters.
The ISSUE AND SALE OF BONDS.
Aa Adequate Gold Reserve Declared to Be
Essential to our Public Credit-Ef-
fectiye Congressional Action
Asked-SuSGestions.

~
yesterday sent to congress the follow
ing special message on the financial
question:
To the Senate and House of Representatives:
In nay last annual message commended to the
serious consideration OF congress the condition
OF our national finances ana II connection with
this subject indO-Sed the plan OF currency Ieg1S-
1ation 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 cow appears 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 viii restore
confidence in our financial S0undneSS and avert
business disaster and universal distress among
our people.
Whatever may be the merits of the plan out
lined in my annual message remedy for
His then existing and safeguard against
the depletion of the gold reserve then in the
treasury. am now convinced that its rejection
by tne congress and our present advanced stage
of financial perplexity necesSltateS additional
or different legislation
With ma tural resources unlimited in varied
productive strength and with people whose
activity and enterprise seek only q fair oppOr-
tunity 10 achieve national success and great
ness our progress should not be checked by a
false financial policy and needless disregard
of sound monetary laws should the timidity
and fear which they engender stand in the way
of oar prosperity.
1t Is hardly disputed that this pred1cament
confront to-day Therefore, no one in any
def,rec responsible for the making and execu-
fion OF our laws should fail to patriotic
duty in honestly and sincerely attempting to re-
ieVe the situation. ManifeStly this effort will
not succeed unless 1t is made untrammeled by
the prejudice of partiSanShip and with a stead
fast determination to resist the temptation to
accomplished party advantage. We may well
remember that if we are affected with financial
difYacuities ali people in all stations of life
arc concerned and surely those who suffer will
not rec eve the promotion of party interests as
excuse for pei hitting 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 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 increasing ratio from their
<1eSirability as investments It is by means
certain that bonds of this description can
much longer be disposed of at price credit
able to the financial character of our govern
1nent-
The most dangerous and irritating feature of
the situation. however remains to be men
toned. It is found in the means by which the
treasury is deSpoiled of the gold thus obtained
without cancelling single government obliga-
ton and solely for the benefit of those who find
profit in shipping it abroad whose fears in
duce them to hoard it at home.
We have outstanding about S500,000,010 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
many times in drawing gold from the treasury,
the process be arrested as long pri-
waite parties who profit by it otherwise see
an advantage in repeating the operation. More
than $500, 0J00o0 in til csc notes have already
been redeemed in gold and. Notwithstanding
OUTSTANDING
Since the 18th day of January 1894, bond
ed interest bearing debt has been increased
Sl00 CO 900 for the purpose of obtaining gold to
r6PhczsSzl gold reserve. Two issues were
made amounting $50, 600, 900 each-one in Janu-
AIRY and the other in November. AS result of
The first issue there was realized something
more than S58, 100000 in gold Between that
Issue and the succeeding one in November, COM
IsrinSy period of ten months nearly S0I OOO 000
ia gold were drawn from the treasury. This
made the second issue necessary and upon that
more than SIS COO in gold was again realized.
Between the date of this second issue and the
present time, covering period of only about
tgo months. more than S69, 10000 in gold were
expended without any cancellation of govern
ment obligations or in any permanent way
benefiting our people or improving pecu-
MARY situation.
The financial events of the past year sug-
ayeSt facts and conditions which should certain
Iy arrest attention. More than S172, 000, 900 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 S103, $50 900
OF The same were drawn out during the first
ten months of the year, sum aggregating
more thaa two-thirdS of that amount, being
about $4,000, 900, drawn out during
the following two months thus indicating q
marked acceleration of the depicting process
with the lapse OF time The obligations upon
which this gold has been drawn from the treas
ury are still outstanding and are available for
use in repeating the exhausting operation at
shorter intervals our perpleXitieS accumu-
late
Conditions are certainly supervening to make
the bonds which may be issued to repienish
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 stage OF diminutiOn
as 10 require its speedy reinforcement.
The aggravationS that must inevitably follow
present conditions and methods will certainly
lead to misfortune and loss not only to our ma
ti0usl credit and prosperity and to financial
employment means OF livelihood and to
those whose only capital is their daily labor.
IL will hardly do to say that simple increase
of revenue will cure our troubles. The appre-
hension now existing and constantly increasing
as TO our financial ability does not rest upon a
calculation of our revenue. The time has passed
whes the eyes of investors abroad and our
people at home were fixed upon the revenues
of the government. Changed conditions have
srnment- There need be no fear that can
not pay COR current expenses with such money
as ue have. There is now in the treasury a
comfortable surplus OF more than SIS, 000, 600
but it is not in gold and therefore does not
meet our difficulty.