Le MeschaceÌbeÌ. [volume] ([Lucy] La.) 1853-1942, 1895-02-09
APPEAL TO CONGRESS-.
Message From the President OIL
the Financial Dilemma.

Maintain the Honor aud Credit
of the Nation, ii the Gist
| Of lae Message.
WASHINGTON. Jan. 2S.-The presi-
dent sent to both houses of congress a
message on the financial question,
withdrawing his support from the plan
outlined in the Carlisle bill, and out
lining the only policy which seems to
him now possible to maintain the gold
reserve. The message is as follows:
To THE SENATE AND House OF REPRE-
sENTATIyEs-ID my last annual ulessage I
recommended 10 the serious consideration OF
the congress the condition OF our national
finances, and In conn ection with the subjects
indorsed tho plan Of currency legislation which
al that time seemed to furnish protection
against impending danger This plan has
not been approved by congress. In the
meantime the situation has changed.
and the emergency now appears so
threatening that I deem It my duty to ask Ut
the hands of the Legislative branch Of the suy
ernment such prompt and effective action as
will restore confidence In our financial sound
ness and avert business disaster and universal
|
the merits Of the plan outlined in my annual
message remedy Ior ills then existing as
safeguard against the depletion of the gold re
serve then in the treasury, am now convinced
] that It's reception by the congress and our
present advanced stage of financial perplexity
necessitates additional or different legislation.
With natural resources unlimited in variety
and productive strength. and with peo
pie whose activity and enterpr-4e seek
only fair opportunity to achieve
national success and greatness, our
! progress should not be checked by a false
| financial policy and needless disregard OF
sound monetary laws, nor should the timidity
| and fear which they engender stand in the way
| OF our prosperity.
! II is hardly disputed that this predicament
confronts US to-day Therefore no one in any
/ degree responsible for the making and execu-
! tion OF our laws should fail to see q patriotic
duty in honestly and sincerely attempting to
relieve the situation. Manifestly this effort
will not succeed unless it is made untram-
meled by the prejudice of partisan hip and
with o steadfast determination to resist the
temptation to accomplish party advantages
We may well remember that il we are threat
eued with financial difficulties all our people
in every station of life are concerned:
and surely those who suffer will not receive
their promotion of party interests an excuse
for permitting our present troubles to advance
to disastrous conclusion. II is also OF the
utmost importance that we approach the study
OF the problems presented as free as possible
from the tyranny OF preconceived opinions. to
| the end that in common danger We may be
able to see with unclouded vision a safe and
reasonable protection.
The real trouble which confronts US consists
of lack OF contid nee, widespread and con-
stantly increasing, in the continuing ability or
disposition OF the government to pay it oblga-
tions in gold. This lack of confidence grows to
some extent out OF the palpable and apparent
embarrassment attending the efforts of
: the government, under existing laws,
| to procure gold, and to great
extent out Of the fmpossibi!ity Of either keep
ing 1t in the treasury Or canceling obligations
by its expenditure after II Is obtained.
The only way left open for the government
procuring gold is by the issue ana sale OF It's
bonds. The only bonds that can be issued were
authorized nearly twenty-five years ago. and
are not well-caloulated to meet our present
needs. Among other disadvantages. they are
made payable In coin instead OF specifically In
gold which, under existing conditions detracts
largely and In an increased ratio from
their desirability As investments. 1t Is
by no means certain that bonds
Of this description can much longer
be disposed of at price creditable to the finan-
cial character of our government The most
dangerous and irritating feature OF the situa-
tion, however, remains to be mentioned. 1t is
found In the means by which the treasury Is
dispossessed OF the gold thus Obtained without
cancelling single government obligation, and
solely for the benefit of those who find profit in
shipping 1t abroad, or whose fears induce them
to hoard it home. We have outstanding abou:
s5OOOO0,eoO OF currency notes of the government
for which gold may be demanded; and,
curiously enough, the law requires that
when presented and, In fact, redeemed
and paid in gold they shall be re-
( J1nfa ln lnfv
many times In drawing gold from the treasury;
nor can the process be arrested as long as pri-
vate parties, for profit or otherwise, see an ad-
vantage in repeating the operation. More than
$3O.O00 oo0 in these notes have already been re-
deemed in gola, and notwithstanding such re-
demption they are all still outstanding. Since
the 18th day OF Janury, 1894 our bonded inter
est-bearing debt has been increased s10U.e0O 900
for the purpose OF obtaining gold to replenish
our coin reserve. Two issues were made
amounting to 81, COO, ,00Q-one in January and
the other in November. As result of the first
issue there was realized something more
than s5s,00,.00O in gold. Between that
issue and the succeeding one in November,
comprising q period OF about ten months,
nearly sl03 600 in gold were drawn from the
treasury. This made the second issue neces-
sary, and upon that more than s5S000, 600 In
gold was again realized. Between the date of
this second issue and the present time. cover
$69 100000 In gold have been withdrawn from
the treasury. These large sums Of gold were
expended without any cancellation of govern
ment obligations or in any permanent way
beueftting our people or improving our Pc
cuniary situation
The financial events Of the past year sugges-
facts and conditions which should certainly ar
rest attention. rc than sl72 600 600 in gold have
been drawn out uf the treasury during the year
for the purpose OF shipment abroad or boarding
at home. While nearly fl03 coo 900 OF this amount
were drawn out during the first ten months of
the year, a sum aggregating more than two
thirds OF that amount, being about go 600. 600,
was drawn out during the following two
months, thus indicating marked acceleraton
OF the depicting process with the lapse OF time
The obligations upon which this gold has
been withdrawn from the treasury are still
outstanding, and are available for use In re-
peating the exhausting operation at shorter in
tervals as our perplexities accumulate. Con-
ditions are certainly superyening tending to
make the bonds which may be issued to re-
plenish our gold less useful for that purpose.
An adequate gold reserve Is In all circum-
stances absolutely essential to the upholding
OF our public credit and to the maintenance OF
our high national character. Our gold reserve
has again reached such stage Of diminutlon
rs to require its speedy reinforcement. The
aggrayations that must inevitably follow pres
ent conditions and methods will certainly lead
to misfortu-9 and loss, not only to our national
credit and prosperity and to financial enter
prise, bit to hose OF our people who seek en-
pioyment as means of livelihood and to those
whose only capital Is their d3iiv labor