The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-01-31
SPECIAL MESSAGE.
ny THE PRESIDENT OF THE
UNITED STATES.
He Asks for Prompt and Effective Ac
ton to Restore Confidence in Our
Financial Soundness and Makes
Few Suggestions.

day sent to congress the lolo"ih6 SPSNi"
message on the financial question:
To the Senate and House of Representa-
tives:
In INV last annual message | recon-
mended TO the serious consideration OF the
congress the condition OF our natlohai
finances and in connection with the SUD
iect endorsed the plan of currency legis'a-
tjon which Mt that time seemed to FURNISH
protection against impending DANGER
This plan has not been approved by coh'
gross. In the meantime the situation mas
% changed that the remedy now appears
80 threatening that deem II my duty !,
ask nj the hands of the legislative brancl
of the government such prompt ana ell
fectiye action az will restore connuenc'
in our financial soundness and avert ousi
ness disaster and universal distress anont
our people Whatever may be the merlH
of the plan outlined in my annual mes
sage as remedy for ills In existence an
as u safeguard against the depletion OF the
cold reserve in the treasury, l am now
convinced that its reception by congress
and our present advanced stage Of hnhh-
cial perplexity neccssitates addltlohai VI
different Legislation. ,,,, ,d
with natural resources, unlimited ana
productive strength and with populutiol
whose activity seek only an 0pportunlaS
TO achieve national success ana src9'nne'o,
false financial policy and n heedlesS UP,
rccord of sound monetary laws, nor should
+he timidity and fear which they engeh-
Jor stand In the way of our prosperity.
~ 10 hardly disputed that this prcdicnment
aonfronts ma today. Therefore, no one IN
onv degree responsible for The making ana
execution Of our laws should IAN 10 sec
duty In honestly and sincerely atteIlp.ihnis
10 relieve the situation. MahiiestS tno
nnlnEA
nntrammelcd by the prejudice OF partisan
Shin and with n steadfast determlnaiioh
60 rresist the temptation 10 accomplish
Marty advantages. We may wen re s
her that if we are threatened WIN hnun
I;o, difIiculties all our people, in every SUI
lion of life, are concerned ana surely tnu .'
who suffer will not receive tho proisno;,Lnon
of party interests as an excuse LOT i"i'uie
" Tbe reai trouble which confronts us
cons;sts In n lack of confidence, VIDE
snread and constantly increasing, IN the
continuing or disposition OF the govern
ment 10 nay its obligations i'll gold. ms
lack Of confidence grows to some extent
ont of the palpable and apparent emDar-
rassmert attending the efforts Of the gov
ernment under existing Laws TO procure
gold, and to a great extent out OIL inc
,mpossibility OF either keeping 1t in the
expenditures after IL Is obtained.
The only way left open to the govern
mcnt for procuring gold Is by the issue
and sale Of bonds. The only bonds that
can be 80 issued we're authorized nearly
% years ago, and are not well calculated
10 meet our present needs. Among other
disadvantages, they are made payaDlc IN
coin instead Of specifically in gold, when
in existing conditions detract5 largely
and in IN increasing ratio from thelr
value as Investments. II is by no means
certain that bonds of this description
can much longer be disposed of at Il
price, creditablo to the financial charac-
Ter OF our government. The most dan
gerous feature Of the situation however
remains 10 be mentioned. II is found in
the means by which the treasury is deS-
Doied of the gold thus obtained without
cancelng single government obligation
and solely for the benefit of those who
lind profit in shipping it abroad or whose
fear induce them to hoard II. we nave
outstanding about $50O,0OO,0O0 of cur
rency notes OF the government, for when
gold may be demanded; and the law re
duires that when presented and IN iact
redeemed and paid in gold they shall be
reissued. These same notes may do duty
many times in drawing gold from the
TREASURY; notes can be passed rs long as
Driyate parties who profit or otherwise
sock an advantage in repeating the opera
ton. More than 100000 in these
notes have already been redeemed IN
cold, and Notwithstanding such rodemp'
tion they are all still outstanding. Since
the 18th day of January, 1894. our bond,
ed interest bearing debt has increased
500 100000 for the purpose OF OBTAIN
ing gold to replenish our coin reserve
Two issues were made amounting 10
100000, 900 one in January and the
other In November. As n result OF the
first issue there was realized something
more than S5S,000,000 in gold between
that issue and the succeeding, compris-
inc n period of about ten months, nearly
S1O3 600 900 in gold were Withdrawn
from the treasury. This made the second
issue necessary, and upon that more IMAM
S6SO0O, 900 in gola was again realized
between the date Of the second issue ana
the present time, n period OF only ABOUT
two months, more than SGD, OOO,OOO IN
gold have been withdrawn from the
treasury. These large sums OF gold were
expended without any cancclauoh OF
government obligations or in any perma-
mont way henefiting or improving our
pecuniary situation.
The financial events of the present year
suggest facts and conditions which should
arrest attention. More than Sl72,OOO,O0O
in gold have been withdrawn out OF the
treasury during the year for the purpose
of shipping abroad or boarding at home,
while $103, 100000 Of the amount were
drawn during the first 10 months OF the
year, sum aggregating more than two
thirds of that amount, being about S69,
100000, was drawn out during the fol
lowing two months, thus indicating n
marked acceleration of the process with
lapse Of time.
The obligations upon which this gold
has been drawn from the treasury are
available for use in repeating the eX'
haustion operation with shorter intervals
as our perplexities accumulate.
Conditions are certainly tending &c
make the bonds which may be issued &c
replenish our gold less useful for that
purpose. An adequate gold reserve is
under all circumstances absolutely es
sential to the unfolding of our public
credit and the maintenance of our high
national character.
Our cold reserve has reached such Z
stage OF dminution ms 10 require 6
speedy enforcement.
The aggrAvations thai must inevitably
sweep present conditions and method,
will certainly lead 20 misfortune nnd loss
not only 10 national prosperity, hue &c
those Of our people who seek emplu!
upnr ss q means az livelihood IN who's.
snly capital is their daily labor H. vii
hardly do 20 say that simple iurr,as,
IF revenue would cure our evils