The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1895-02-01

TO the senate and house OF representa-
tiyes:
In my last annual message commended
to the serious consideration of the con-
sress the condition of our national I'm
ances, and in connection with the subject
Endorsed the plan of currency legislation
which at that time seemed to furnish pro-
tection against impending danger. This
plan has not been approved by the con-
gress. In the meantime the situation has
so changed and the emergency now APP
pears so threatening that L deem 1t my
duty 10 ask at the hands of the leglsla-
tive branch of the government such
prompt ana effective action as will re-
store confidence in our financial sound
ness and avert business disaster and uni
Versal distress among our people. WHAT
ever may be the merits of the plan out
lined IN my annual message as a rem
edy for Ills then existing and as a safe
guard against the depletion or tile gold
reserve then in the treasury, L am now
convinced that it's reception by the con-
gress and our present advanced stage of
financial perpleXity necessitates addition
al or different legislation. With natural
resources unlimited in variety and pro-
ductive strength, and with a people whose
activity and enterprise seek only a fair
opportunity to achieve national success
and greatness, our progress should not be
checked by a false financial policy and a
needless disregard of sound monetary
laws. nor should the timidity and fear
which they engender stand in the way OF
eur prosperity.
1t is hardly disputed that this predica-
ment confronts us to-day. Therefore, no
one in any degree responsible for the
making and execution of our laws should
fail TO see patriotic duty in honestly and
sincerely attempting to relieve the situa-
ton. Manifestly this effort Will not sue
eeed unless ii is made untrammeled by
the prejudices of partisanship and with
steadfast determination to resist the
temptation 20 accomplish party ddvan-
tage. We may well remember that IL we
ere threatened with financial difficulties
all our peoplc in every station OF lie are
concerned, and surely those VINO suuer
will not receive the promotion of party
interests as an excuse for permitting our
present troubles to advance to a disas-
trous conclusion. 1t is also OF the utmost
importance that we approach the stuly
of the problems presented as free as pos
sible from the tyranny of preconceVed
opinions, to the end that in common
sanger we may be able TO seek with UNI
elouded vision n safe and reasonable pro-
The real trouble which confronts us
consists in lack of confidence, wide
spread and constantly increasing, In the
continuing ability or disposition OF tne
government to pay its obligations IN
gold. This lack Of confidence, grows 70
parent embarrassment attending the Ell
forts of the government under existing
laws TO procure gold, and to greater eN-
tent out of the impossibility OF either
keeping 1t in the treasury or cancellng
obligations by its expenditure after II ls
obtained. The only way left open to the
government for procuring gold is by the
issue and sale of bonds. The only bonds
that can be 50 issued were authorized
nearly twenty-five years ago, and are not
we'll calculated to meet our present
needs Among other disadvantages they
are made payable in coin instead or speclI-
cally in gold, which in existing conditions
detracts largely and in an increasing ra-
ito from their desirability as investments:
Tt is by no means certain that bonds OF
this description can much longer be dis
posed of at a price creditable to financial
Character of our government. The most
dangerous and irritable feature OF the
situation remains to be mentioned. IL rs
found in the means by which the treasury
is despoiled of the gold thus obtained
without canceling single government oDs
lgatlon and solely for the benefit OF
those who find profit in shipping II
abroad or whose fears induce them 70
hoard /. at home. We have outstandihg
about 100000 900 OF currency notes OF the
government for which gold may be de-
manded. and curously enough the law
requires that when presented, and IN TACT
redeemed and paid in gold they shall be
reissued Thus the same notes may do
duty many times in drawing gold from
the treasury; nor can the process De ar
rested as long as private parties VINO
prof. or otherwise see an advantage in
repeating this operation. More Than $780,
100000 in these notes have already been
redeemed in gold and Notwithstanding
such redemption they are all sun out
standing. - ,,o,
our bonded interest bearing debt has been
Increased 500, 100000 for the purpose of
Obtaining gold to replenish our gold re-
serve. Two issues were made amounting
10 $50 900 600 each. one in January and the
other In November As q result OF the
FIRST issue there was realized something
more than Sos 600 in gold. Between
that issue and the succeeding one I'm
November, comprising a period OF about
ten months, nearly SO3,WO,OO In gold
were drawn from the treasury. This
made the second issue necessary, and up
on that more than SS,0O0,0O0 In gold was
again realized Between the date of the
second issue and the present time. COW
ering a period of only about two months,
more than $69,0O0,0O0 in gold has been
drawn from the treasury, These large
sums Of gold were expended without any
cancellation of government obligations or
in any permanent way beneflting our peo-
pie or improving our pecuniary situation.
The financial events of the past year
suggest facts and conditions which should
certainly arrest attention. More than
s172, 900 in gold has been drawn out of
the treasury during the year for the pur-
pose of shipment abroad or boarding at
home. While nearly SlC3. 100000 of this
amount was drawn out during the first
ing more than two-thirds of that amount
being about 100000, was drawn out
during the following two months, thus
indicating marked acceieration OF the
depicting process Win the lapse of time.
The obligations upon which this gold has
been drawn from the treasury are still
outstanding and are available for use in
repeating the exhausting operation with
shorter Intervals our perplexities ac-
lcumulate. Conditions are certainly SUI
bervening, tending to make the bonds
which may be issued to replenish our gold
Jess useful for that purpose. An adequate
gold reserve is in all circumstances alb
lsolutely essential to the upholding of our
public credit and to the maintenance OF
our high national character. Our gold re-
serve has again reached such stage OF
diminution as to require its speedy re-
enforcement
The aggravations that must inevitably
follow present conditions and methods
will certainly lead TO misfortune and loss,
not only to our national credit and pros
perty and financial enterprise. but to
those of our people who seek employment
has means OF livelihood and to those
WHOSE only capital Is their daily labor. 1t
will hardly 90 TO say that a simple in
crease OF revenue Will cure our troubles.
The apprehension now existing and con-
lstantly increasing as TO our financial alb
jlity does not rest upon a calculation of
our revenue The time has passed when the
eyes OF investors abroad and our people
at home were fixed upon the revenues OF
the government. Changed conditions have
attracted their attention to the gold OF the
government. There need be no fear that
we cannot pay our current expenses with
such money as we have. There Is now In
the treasury a comfortable surplus OF
more than Sc3 900, but IL Is not IN gold
and therefore does not meet our difficulty.
/ cannot see that differences OF opinion
- a