The morning call., 1895-01-29
cLEVELAND,s MESSAGE.
Congress Urged to Issue Bonds to Kee
Up the G0ld Reserpe.

Congress Urged to Issue Bonds to Keep
Up the Cold Reserre.
WASHINGTON, Jan. 2s.-The President to-
day sent to Congress the following mes
sage:
To the Senate and House of Representatives:
In my last annual message / commended TO
the serious consideration of Congress the con-
dition OF our national finances and in connec-
ton with the subject Endorsed g plan of cur
rency legislation which at that time seemed to
furnish protection against impending danger.
This plan has not been approved by Con-
gress. In the meantime the situation has SO
changed that it appears so threatening that
deem it my duty to ask at the hands of the
legislative branch OF the Government such
prompt and effective action as will restore con-
fidence in our financial soundness and avert
business disaster and universal distress among
our people.
Whatever may be the merits of the plan out
lined in my annual message as a remedy for
the ills existing and as safeguard against the
depletion of the gold reserve then in the treas
ury, / am now convinced that its reception by
Congress and our present advanced stage OF
financial perplexity neeessitates additional or
different legislation. With our natural re-
sources, unlimited in varied and productive
strength, and with the people, whose activity
and enterprise seek only fair opportunity to
achieve national success and greatness, our
progress should not be checked by false fnan-
cial policy and 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 that predicament
confronts us to-day. Therefore, no one in any
degree responsible for the making and execu-
ton OF our laws should fail to see their pa
triotie duty in honestly and sincerely attempt
ing to relieve the situation. Manifestly this
effort viii not succeed unless it is made I'M
trammeled by the prejudice OF partisanship
and with steadfast determination to resist
temptation to accept such party advantage.
We may well remember that if we are affected
with financial difficulties all of our people, of
all stations in life, are concerned, and surely
those who suffer will not receive the promotion
of party interests as an excuse for permitting
our present troubles to advance to disastrous
conclusion. 1t is also of the utmost importance
that we approach the study Of the problems of
the present as free as possible from the tyranny
OF preconceived opinions, to the end that in the
common danger we may seek with unclouded
vision safe and reasonable protection.
The real trouble which confronts us consists
in lack of confidence in the continuing abil-
ity or the disposition of the Government to pay
us ODllSdilOuS III BOlQs his ldCk OF
grows to some extent out of the palpable and
apparent embarrassments attending the Gov
eminent under the existing laws to procure
gold, and to greater extent the impossibility
of either keeping it in the treasury or cancel
ing the Obligations by its expenditure after it
is obtained. The only way left open to the
Government in 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 are not well calculated to meet
our present needs. Among other disadvan-
tages they are made payable in coin instead Of
specifically in gold, which in the existing con-
ditions detract largely and in an increasing
ratio from their desirability as investments. 1t
is by no means certain that bonds of this de-
scription may be much longer disposed of at q
price creditable to the financial character of
our Government The most dangerous and
irritating feature of the situation, however, re-
mains to be mentioned.
1t is found in the means byiwhich the treasury
is despc1led of gold thus obtained without can
ceiling single Government obligation, and
solely for the benefit of those who find profits
in shipping it abroad, or whose fears induce
them to hoard it at home. We have outstand-
ing about $500 O0O, 900 of currency notes.
More than $500, 900, 900 of these notes have al
ready been redeemed in gold, and notwith-
standing such redemption they are all still out
standing. Since the 18th of January, 1894, our
bonded interest-bearing debt has been in
creased 100000, 900 for the purpose of obtain
ing gold to replenish our coin reserve. Two is
sues were made amounting to $4,000, 900
each, one in January and the other in Noyem-
Der.
As a result of the first Issue, there was real
lied something more than $58, 000,o00 in gold.
Between that issue and the succeeding one in
November, comprising a period of about ten
months, sos, 100000 in gold was drawn from
the treasury. This made the second issue
necessary, and upon that more than $685.
100000 in gold was again realized. Between
the date OF this second issue and the present
time, covering a period of only about two
months, more than $4,000, 900 in gold was
expended without any cancellation OF Govern
ment obligations in any permanent way bene-
fitting our people or improving our pecuniary
situation.
The financial events of the past year suggest
facts and conditions which should certainly
arrest attention. More than $I72, O0O, 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 $l03, Oo0, 900
of the same was drawn out during the first
ten months of the year, a sum aggregating
more than two-thirds of that amount being
about 500 600 900, was drawn out during the
following two months, thus indicating a
marked acceleration. The obligations upon
which this gold has been drawn from the
treasury are still outstanding, and are avail
able for use in repeating the exhausting opera
tons with shorter intervals as our perpiexities
accumulate. The conditions are certainly
superVening, tending to make the bonds which