The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-01-28
PRESIDENT SPEAKS.
A Message on the Financial
Situation Addressed
to Congress.
POPULAR BOND ISSUE
The Remedy for the Drain on
the Treasury Customs
Duties Payable in
Gold.
RETIRE SILVER CERTIFICATES
National Banks May Use the
New Bonds to Secure
Circulation.
POPULAR BOND ISSUE
RETIRE SILVER CERTIFICATES

WASHINGTON, Jan. 2s. 1s95.-The Pres
ldent sent to both Houses of Congress
today message on the financial sirua-
ton, substantially withdrawing his sup
port from the plan outlined in the Car
Isle bill, and outlining the only policy
which seems TO him now possible to
maintain the gold reserve.
The message was as follows:-z
To the Senate and House of Repre-
sentatives:-
In my last annual message l COM
mended to the serious consideration OF
the Congress the consideration of our
with the subject indorsed the plan OF
currency legislation which at that rime
seemed to furnish protection against i'm
pending danger. The plan has not peen
approved by the Congress.
IN the mea ntime the situation mas SO
changed and the emergency now ap-
pears so threatening that l deem it my
duty to ask at the hands of the legisla-
tive branch of the Government such
prompt and effective action as will re-
store confidence in our financial sound,
ness and avert business disaster and
IN versal distress among our people.
Whatever may be the merits of the
q remedy for ills then existing and as
a safeguard against the depletion of the
gold reserve then in the Treasury, l am
now convinced that It's reception py 5ne
henal or d fferent legislation.
With natural resources unlimited IN
variety and productive strength, and
with people whose activity and enter
prise seek only q fair opportunity to
achieve National success and greatness,
s-I,o 1af ha Thn yOA hIy
false financial policy and needless
q sregard of sound monetary laws, nor
should the timidity and fear Which they
eEeender stand in the way of our pros
perity.
It IS hardly disputed that this predica-
haent confronts US today. Therefore, no
2 making and execution OF our laws should
-fetiif IT. see a S.... sotic duty in honestly
and sincerely attempting to relieve the.
NO PARTIsANsHIP.
Manifestly this effort will not succeed
unless it is made untrammelled by the
prejudice of partisanship, and with a
fteadfast adm nistration to resist, the
temptation to accomplish party advan.
tage. We may well remember that If
we are threatened with financial diff
life are concerned, andSsurely those who
Euffer will not receive the promotion OF
party interests. as an excuse for per-
nlittlng our present troubles to advance
to- disastrous conclus on.
Ii is also of the utmost Importance
that-We approach the study of the prob
lens presented as free as possible from
the tyranny OF preconeeived opinions, to
the end that in a common danger We
may be able to seeksswith unclouded
vision a safe and reasonable protection.
The real trouble which confronts US
consists in a lack of sconadence, wide
spread and constantly Increasing, in the
continuing ability or disposition of the
Government 10 pay its obligations in
gold
The lack of confidence grows to some
extent out of the palpable and apparent
the Government under existing laws to
procure gold, and to greater extent
out of the imposs.bllity of either keep
ing it IN the Treasury or canceliing OBJ
legations by the expenditure after it is
obtained.
The only way left open to the Gov
issue and sale of its bonds. The only
bonds that can be issued were author
lied nearly twenty-five years ago, and
not well calculated to meet our pres
GOLD VS.. "colN."
Among other disadvantages they are
made payable in coin instead of specifi
cally in gold, which in existing con-
ditions detracts largely and in an in
creasing ratio from their desirability as
Investments. 1t is by no means. GER
much longer be disposed of at a price
ereditable to the financial character of
our Government.
The most dangerous and Irritating fea-
ture of the situation, however, remains
to be mentioned. 1t is found in the
me ans by which the Treasury is de-
spoiled of the gold thus obtained without
cance1ling a single Government obliga-
ton, and solely for the benefit of those
who find profit in shipping it abroad, or
whose fears induce them to hoard it at.
We have outstanding about five hun
dred millions of currency notes of the
Government for which gold may be de-
randed; and curiously enough the law
reouires that when presented and in fact
redeemed and paid in gold they shall be
many times in drawing gold from the
Treasury; nor can the process be ar
rested as long as private parties for
peging the nes operation att m More than Il three
hundred millions of dollars in these
notes have already been redeemed in
gold, and notwiths,tanddng t,,t such redemp-
BOND ISSUES.
Since the 18th day of January, 1894, our
bonded bearing debt has been
increased s100,000,G00 for the purpose of
obtaining geld to replenish our coin re-
serve.
Two issues were made, amounting to
fifty millions each-one in January, and
the other in November. AS result of
the first Issue. there was realized some
thing more than fifty Eight millions of
collars IN gOd. Between tnat issue ana
the succeeding one in November, COM
prising a period of about ten months,
nearly one hundred and three millions
of dollars in gold were drawn from the
Treasury.
This made the second issue necessary,
and upon that more than s5s oae, 600 In
rold was again realized. Between the
Gate Of this second issue and the pres
ent time, covering a period cf only about
two months, more than S59, coo of gold
have been drawn from the Treasury.
These large sums of gold were ex-
pended without any cancellation of
Government obligations, o., in any per
improving our pecuniary situation.
The financial events of the past year
suggest facts and conditions which
should certainly arrest attention.
More than one hundred and twenty
two millions of dollars In gold have been
6rann oEt of the Treasury during the
year I'D the purpose OF shipment abroad
or boarding at home.
GOLD DRAFTS.
While nearly one hundred ana three
millions Of this amount were drawn
nuk during the first ten months f o. tn the
yRaE. q sum agggegatsng more ffan two