Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1895-02-01
THE NATIONS FINANCES.
A Strong Message from Presi-
dent Cleveland,
Urging Prompt Measures to Enable tn,
1.u...n...,u..A a.. Nrni..ant.. IL. 1....lI.


Government to Maintain Its credit.
President Cleveland sent to both houses
of Congress OF Monday a message on the
financial situation, in which he withdraws
his support from the plan OF currency re-
form recommended in his annual message,
and embodied in the Carlisle bill, and out
lining in its stead the only policy which
now seems to him possible to maintain the
gold reserve This plan is, in biicf, the is
sue OF irree-per-cent lifty-year gold bonds,
in small denominations, the proceeds from
the sale Of which to be used to redeem and
permanently retire legal tender notes.
The Message.
To the Seaoie and House Of Represeata-
tires:
In my last annual message commended
to the serious consideration of the Con-
gress the condition Of our national finances,
and in connection with the subject in
dorsed the plan of currency legislation
which AT that time seemed to furnish pro-
lection 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 ap-
pears 50 threatening that | deem il my du-
" to ask at the hands Of the legislative
branch of the government such prompt
and effective action as will restore conf
denCe in our financial sOundness and avert
business disaster and universal distress
among our people, Whatever may be the
merits of the plan outlined in my annual
message as a remedy for the ills then eX-
sting and as safeguard against the de-
pletion OF the gold reserve then in the
treasury, am now convinced that its re-
| ceptiOn by the Congress and our present
advanced stage of financial perpleXity ne
cesstate additional or different legislation.
Impaired National Credit the Trouble.
The real trouble which confronts us con-
sists in lack of confidence. widespread
and constantly increasing, in the Coutinu-
ing ability or disposition of the govern
ment TO pay its obligations in gold. This
lack of confidence grows to some extent
out of the palpabe and apparent embar-
rassment attending the efforts of the gov
ernment under existing laws to procure
gold, and to a greater extent out of the i'm
possibility of either keeping it in the treas
ury or canceling obligations by its eXpend-
iture after it is obtained. The only way
left open to the government for procuring
gold is by the issue and sale of United
States bonds The only bonds that can be
so issued were authorized nearly % years
ago, and are not well calculated to meet our
present needs Among other disadvant-
ages, they are made payable in coin in
stead of specifically in gold, which in ex-
isting conditions detracts largely and in an
increasing ratio from their desirability as
investments 1t is by no means certain
| hot Of inf ion
longer be disposed of at price creditable
to the financial character of our govern
ment.
How the Treasury Is DespOiIed.
The most dangerous and irritating feat
4 ure of the situation, however, remains to
! be mentioned 1t is found in the means by
/ which the treasury is despoiled of the gold
/ thus obtained without canceling a single
/ government obligation, and solely for the
/ benefit of those who find profit in shipping
/ it abroad or whose fears induce them to
hoard it at home. We have outstanding
about five hundred million 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 reissued. Thus the same
/
| gold from the treasury; nor can the proc
ess be arrested as long as private parties,
for profit or otherwise, see an advantage
in repeating the operation. More than
! $500, ,0O0, 900 in these notes have already
been redeemed in gold, and notwithstand
ing such redemption, they are still out
standing.
The Treasury Has No Protection.
Since the 18th day of January, 1894
ou- bonded interest bearing debt has beer
increased S100,000,000 for the purpose o.
obtaining gold to replenish our coin re
serve. Two issues were made amounting
to fifty million each-One in January anC
the other in November. AS a result of tn,
first issue there was realized something
more than S5S,000,000 in gold. Between
that issue and the succeeding one in No
vember, comprising period of ten months
nearly $l03, 100000 in gold were draw
issue necessary, and upon that more thar
SOS, 900, 600 in gold was again realized
Between the date of this second issue ant
the present time, covering period of Onl,
about two months, more than $50, 900, 00I
in gold have been drawn from the treasury
These large sums of gold were expended
without any cancellation of government
obligations or in any permanent way bene
fitting our people or improving our pecun
iary situation. The financial events of tn
past year suggest facts and condition
which should certainly arrest attention
, More than Sl72, 100000 of gold have bee
drawn out of the treasury during the yea
for the purpose of shipment abroad o
boarding at home. While nearly S103,
600, 600 of this amount were drawn on
during the first ten months of the year,
} sum aggregating more than two-thirds 0
that amount, being about $69, 1000, ,OOC
9 was drawn out during the following tw
. months, thus indicating marked accele
alton of the depicting process with tn
lapse of time. The obligations upon whic
| this gold has been drawn from the treasl
ry are still outstanding, and are availab
, for use in repeating the eXhausting operi
tion, with shorter intervals as our perplel
tiles accumulate.
Not the Revenues, but the Currency
1t will hardly do to say that simple il
crease of revenue will cure our trouble
e The apprehension now existing and col
stantly increasing as to our financial abil
U. S. Govt Report