The National tribune., 1895-12-05

that repeated assurances have also been OBJ
tanned by our Envoy at Constantinople that
similar institutions maintained and admins
tered by our countrymen shall be secured in
the enjoyment of sill rights. and that
our citizens throughout the Empire shall
be protected" He admits that these as
snrances are not altogether satisfactory,
and says that American warships have been
sent as far IS they can go to afford refugees for
our people, and that Turkish soldiers have
escorted American refugees to the coast.
Our Minister has been vigilant and alert, and
thus far no American lives have been sacri-
feed.
He goes into reform in the Consular service
at some length, and recommends that we pro-
vide official residences for our ambassadors
and Ministers
He devotes nearly one-half of the message to
discussion Of the financial question, with this
preface:
"By command ofthe people customs venue
system, designed for the protection and benefit
of favored classes at the expense of the great
mass OF our countrymen, and which, while in
sufficient for the purpose Of revenue, curtailed
our trade relations and impeded our entrance
to the markets of the world, has been super
ochCh ny ~ tdIlu pO4lCy WHICH III E4HCsple Is
based upon denial of the right Of the Govern
ment to obstruct the avenues TO our peoples
cheap living or lessen their comfort and con-
tentment, for the sake Of according especial
advantages to favorites, and which, while
encouraging our intercourse and trade with
other nations, recognizes the fact that Ameri-
can self-reliance. thrift and ingenuity can build
up our country's industries and develop its
resources more surely than enervating pater-
nalism.
The compulsory purchase and coinage of
silver by the Government unchecked and
unregulated by business conditions and heed
less of our currency needs. which for more
than 10 years diluted our circulating medium.
undermined confidence abroad in our financial
ability, and at last eliminated in distress and
panic at home. has been recently stopped by
the repeal of the laws which forced this reck-
less scheme upon the country.
Tho things thus accomplished, notwith-
standing their extreme importance and bene-
fetal effects, fall far short of curing the none
tary evils from which we suffer as a result of
long indulgence in ill-advised financial ex-
pedents."
He then goes into long history of the fnan-
cial legislation. beginning with the issuance of
greenbacks, which he says:
"Their advocates declared they were in
tended for only temporary use and to meet the
emergency of war. In almost il not ali the
laws relating TO them some provision was made
contemplating their voluntary or compulsory
retirement. A large quantity of them, how
ever, were kept on foot and mingled with the
currency of the country, so that at the close of
the year 1874 they amounted to $685.. 999. 073."
Subsequently Congress passed law declar-
ing that these greenbscks should be perma-
nent part Of the currency of the country. and
L. - -. III
had been passed directing larger governmental
monthly purchases of silver than had been re-
CURED under previous laws, and providing that
in payment for such silver Treasury notes Of
the United States should be issued, payable on
demand in gold or silver coin, at the discretion
of the Secretary of the Treasury. 1t was. how
ever, declared in the act 10 be the established
policy of the United States to maiatain the two
metals on a parity with each other upon the |
present legal ratio or such ratio as may be pro-
vided by law. In view Of this declaration it |
was not deemed permissible by the Secretary /
Of the Treasury to exercise the discretion in /
terms conferred on him, by refusing To pay /
gold on these notes when demanded because |
by such discrimination in favor of the gold /
dollar the so-called parity of the two metals |
would be destroyed, and grave and dangerous /
would be precipitated by affirm
ing or accentuating the constantly widening
disparity between their actual values under
The existing ratio.
alt thus resulted that the Treasury notes
ssued in payment of silver purchases under
the law of 1890 were necessarily treated as gold
at the option of the holder. These
notes on the LIST day of November, 1898. when
he law compelling the monthly purchase OF
silver was repealed, amounted to more than
S1J3, OO00O The notes of this description
now outstanding added to the United States
notes still undiminished by redemption or can
relation constitute volume of gold obliga-
lions amounting to nearly $500. 100000. These
obligations are the instruments which, ever
since we have had gold reserve, have been
used to deplete it."
He blames the depletion of the gold in the
Treasury upon
6 the great falling off of exports under the
operation of the tariff law until recently in
orce, which crippled our exchange of COM
nodities with foreign nations and necessitated /
% some extent the payment of our balances in
.old; the unnatural infusion of silver into our
and the increasing agitation for its /
rec and unlimited coinage, which have ere
tied apprehension as to our disposition or abil-
ty to continue gold payments; the consequent
BOARDING of gold at home and the stoppase of
N vestments of foreign capital as we'll as the /
eturn of our securities already sold abroad
md The high rate of foreign exchange, which
induced the shipment of our gold to be drawn
ganst, as a matter of speculation"
He narrates the rapid reduction of the gold
eserve, the critical situation of the Treasury,
lis fruitless appeal to Congress for help, and
Explains and defends the issuance of bonds
Returning to the silver notes he says:
More than $76O0O,OOO in gold has. since
heir creation in 1890 been paid out from the
Treasury upon the notes given on the purchase
# silver by the Government; and yet the
whole, amounting to Sl5o, 100000 except little
more than $4,000, COO which have been re-
ired by exchanges for silver at the request |
# the holders, remains outstanding and pre-
Jared to join to their older and more expert
nced allies in future raids upon the Treas
iry's gold reserve.
"In other words, the Government has paid
n gold more than nine-tenths of it's United
states notes and still owes them all. 1t has
,aid in gold about one-half of its notes given
or silver purchases without extinguishing by
uch payment one dollar of these notes.
when added to all this we are reminded
hat to carry on this astounding financial
cheme the Government has incurred bonded
of 500, SOC. 600 in establishing
,old reserve, and of $162, 3l5, 400 in efforts to
maintain it; that the annual interest charge
IN such bonded Indebtedness is more than SILL
100 600; that q continuance in present
course may result in further bond issues, and
hat we have suffered or are threatened with
III this for the sake of supplying gold for for
ign shipment or facilitating it's boarding at
lome a situation is exhibited which certainly
,ught to arrest attention and provoke imme-
late legislative relief"