The record-union., 1895-01-29
Special to the REcoRp-UN1oN.

message:
TO the Senate and House Of Representa-
tiUeS: In my last annual message l COM
mended to the serious consideration of
Congress the condition of our national
finances, and in connection with the
subject indorsed a plan of currency
legislation, which, at that time, would
seem to furnish protection against the
impending danger. This plan has not
been approved by Congress. In the
meantime conditions have so changed
and the emergency now appears so
threatening, that l deem it my duty to
ask at the hands of the legislative branch
or the Government such prompt and ef-
tective action as will restore confidence
in our financial soundness and avert bus
mess disaster and universal distress
among our people.
Whatever may be the merits of the
plan outlined in my annual message as a
remedy for the ills existing and a safe
guard against the depletion Of the gold
reserve then in the treasury, am now
convinced that its reception by Congress
and our present advanced stage of tinan-
cial perpleXity necessitate additional or
different legislation. With national re-
sources unlimited in variety and product
i've strength, and with a people whose
activity and enterprise seek only fair
opportunity to achieve national success
and greatness, our progress should not
Needless disregard OF sound monetary
law; nor should timidity and fear, which
they engender, stand in the way OF our
prosperity.
1t is hardly disputed that predica-
menJ confrOnts US to-day, therefore no
one in any degree responsible Tor the
making and execution OF our laws should
fail 10 see the patriotic duty, ho estly
and sincerely, to relieve the situation.
Manifestly this effort will not succeed
unless IL Is made by prejudice, PARTISAN
ship and with a steadiast determination
TO resist temptation to accept such
party advantage. We may well remem-
ber If we are affected with financial diff
cUItieS, that the wishes Of our people in
all stations OF life are concerned and,
surely those who suffer Will not receive
the promotion of party interests as an ex-
cuse for permitting our present troubles
to advance to a disastrous conclusion.
1t is also of the utmost importance that
we approach the study OF the problem Of
the present as. free as possible from the
tyranny of preconceived opinions, to
the end that in common danger we may
seek with unclOuded vision sale and rea-
sonable protection.
The real trouble which confronts US
consists in a lack of confidence, wide
spread and constantly increasing, in con-
tinuing the ability or disposition Of the
Government TO pay its obligations in
gold. This lack OF confidence grows to
some extent owing to the apparent en-
barrassments attending The Government
under the existing laws to procure gold
and to greater extent to the impOssl-
bility of either keeping it in the Treasury
or canceling the obligations by its ex-
penditure after it is obtained.
The only way left open to the Govern
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 specific
ally in gold, which, in the existing con-
dltIons, detract largely and in an increas-
ing ratio from their desra biIity as IN
veStments. 1t is by no means certain
that bonds of this description will be much
longer disposed OF at price creditable to
the financial character of our Govern
nent.
The most dangerous and irritating
feature OF the situation, however, remains
to be mentioned. 1t is found in the
means by which the Treasury is de-
spoiled of the gold thus obtained, with
out the cancelling of a single Government
obligation and solely for the benefit OF
those who find profit in shipping it
abroad, or whose 1ears induce them to
hoard it at home. We have outstanding
about 500, 100000 in currency, for which
gold may be demanded, and, curiousiy
enough, the law requires that when pre-
sented, and in fact redeemed and paid in
gold they may be ressued.
Thus the same notes may do duty MANY
times drawing gold from the treasury.
Nor can the process be arrested as long
as private parties profit or otherwise
see any advantage in repeating the opera
tion.
More than $500, 900 of these notes
,l,a, L., 4 i
notwithstanding such redemption, they
are all still outstanding. Since the l7th
day of January, 1894, our bonded inter-
est bearing debt has been increased $780,
OJO,0OO. For the purpose of obtaining
gold 10 rep.enlsh our coiu reserve TWO
issues were made, amounting to $4,000
600 each, one In January, the other in
November. AS the result of the first
issue there was realized something more
than S5S,OO0UOO in gold. Between that
issue and the succeeding one in No
vember, comprising period of about ten
months, nearly Si03,OO0,OOO IN gold was
drawn from the Treasury. This made
the second issue necessary, and upon
that more than SOS, ,000, 900 in gold was
again realized.
Between the date of this second issue
and the present time, covering period
OF only about two months, more than
S69, ,UOO, 900 in gold was extended without
tions, in any way permanently benefit
ing our people or improving our pecu-
mary situation. The financial events of
the past year suggest facts and conditions
which should certainly arrest attention.
More than Sl12 600. 900 in gold has been
drawn out of the Treasury during the
year for the purpose OF shipping abroad
or boarding at home. While nearly Sl03-
UUO,OOO was drawn out during the first
ten months of the year, q sum aggregat-
ing more than two-thirds OF that amount
being about $4,000, 600, was drawn out
during the following two months, thus
indicating marked acceleration of the
depicting process with the lapse of time.
Obligations upon which this gold has
been drawn from the Treasury are still
outstanding and available for use in re-
peatlng the eNhausting operations with
shorter intervals.
AS our perplexities accumulate con-
ditlons are certainly supervening tend
Ing to make the bonds, which may be is
sued to replenish our gold, less useful for
that purpose. An adequate gold reserve
Is In all circumstances absolutely essen
tai to upholdIng our public credit and 10
the maintenance OF our high national
character. Our gold reserve has again
reached such stage of diIninution as 10
require Its speedy reinforcement Ag-
graVatlons that must inevitably follow
Inc present conditions and methods will
certainty lead TO misfortune and loss. not
only 10 our national credit and prosper
Ivy, ana TO financial enterprise, but 10
tnose OF our people who seek emDloy-
ment as means of Livelihood. and TO
those whose only capital is daily labor.
1t viii hardly do to say that simple in
crease IN the revenue can cure our
troubles.
The apprehension now existing and
constantly increasing as to our financial
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