The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-01-29
CLEVELAND AND OUR CREDIT.
THE PRESIDENT CALLS ON CON
GRESS TO ACT.


Permanent Gold Reserve-Men of
All Parties Urged TO Lay Aside
Their Political and Theoretical
Differences and Unite ON "A plan
20 Remedy the Present situation.
The President Recommends nm
Issue of Per Cent. Fifty Yenr
Gold BondS-Outstanding Gold Oh
legations should he Permanently
Retired.
Washington. Jan. 2S-The President
sent to both houses OF congress to-day a
message on the financial situation. sub
stantially Withdrawing his support from
the plan outlined in the Carlisle bill. and
outlining the only policy which seems to
him now possible to maintain the gold re-
serve. The message reads as follows
To the Senate and House OF Represen-
tatives: In my last annual message
sidcratiOn Of congress the condition
of our national finances. and I'm connec-
tion with the subject, indorsed plan
of currency legislation which, at that time,
seemed to furnish protection against the
impending danger. This plan has not been
approved by the congress In the mean
time the situation has SO changed, ana the
emergency now appears 50 threatening
that deem Il my duty TO ask at the hands
of the legislative branch of the govern
ment such prompt and effective action as
viii restore confidence 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
rssaI
a safeguard against the depletion of the
gold reserve then In the treasury, / am
now convinced that It's reception by the
congress and our present advanced stage
of financial perplexity necessitate addi-
tional or different legislation.
With natural resources unlimited in
variety and productive strength, and with
a people whose activity and enterprise
seek only fair opportunity to achieve ma
tional success and greatness, our progress
should not be checked by 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
It Is hardly disputed that this predlca-
ment confronts us to-day Therefore. no
one In any degree responsible for the max
ing and execution Of our laws, should fail
20 see patriotic duty in honestly and sin
cerely attempting to relieve the situation.
Manifestly this effort will not succeed un-
less II is made untrammelled by the pre-
judice Of partisanship, and with stead
fast determination to resist temptation to
accomplish party advantage. We may
well remember that If we are threatened
with financial difficulties all our people in
every station OF life are concerned and
surely those who suffer viii not receive
promotion of party interests as an excuse
for permitting the present troubles TO
advance to a disastrous conclusion.
1t is also OF the utmost importance that
we approach the study Of the problems
presented as free as possible from the ty-
ranny Of preconceived opinions, to the
end that in the common danger we may
be able to seek with unclOuded visions,
reasonable protection. The real trouble
which confronts US consists in lack OF con-
fidence, widespread and constantly in
creasing, in the continuing ability or dis
position of the government TO pay It's obli-
cations in gold. This lack of confidence
grows to some extent out of the palpable
and apparent embarrassment attending
the efforts of the government, under exist
ing laws, to procure gold, and to greater
extent out Of the impossibility Of either
keeping it in the treasury or cancelling
obligations by it's expenditures after 1t is
obtained. The only way left open to the
government for procuring gold is by the
issue and sale Of its bonds The only
bonds that can be so issued were author
lied nearly twenty-five years ago and
are not well calculated to meet our pres
ent needs. Among other disadvantages
they are made payable in coin, instead Of
specifically in gold, which, in the ex-
isting conditions, detracts largely and in
increasing ratio from their desirability as
an Investment 1t is by no means GER
tain that bonds Of this description can
much longer be disposed of at a price
creditable to the financial character of
our government.
The most dangerous and Irritating feat
ure of the situation, however, remains to
be mentioned 1t is found in the means by
which the treasury Is depleted of the gold
thus obtained without cancelling single
government obligation, and solely for the
benefit of those who find profit in ship
ping it abroad, or whose fears induce them
TO hoard il at home. We have outstanding
about $JO0,00O,ODO 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 ressued. Thus, the same notes
may do duty many times in drawing gold
from the treasury; nor can the process be
arrested as long as private parties, for
profit or otherwise, see an advantage in
reueating the operation. More than $780,
O00 600 In these notes have already been
redeemed in gold, and, Notwithstanding
such redemption, they are all still out
standing Since the 18th day Of January,
1894. our bonded interest-bearing debt has
Increased S1OO,O0O,O00 for the purpose of
obtaining gold to replenish our coin re-
serve. Two issues were made, amounting
10 ga. OOO.OOO each, one in January and the
other in November. As a result Of the
Nrst issue. there was realized something
more than S5s,0O0,0O0 in gold. Between that
issue and the succeeding one in Novem-
bsr comprising a period Of about ten
months. nearly $l03.0J0,O00 in gold were
drawn from the treasury. This made the
second issue necessary, and upon that
more than SIS 900, 900 in gold were again
realized. Between the date Of this second
issue and the present time, covering pc
riod Of only about two months more than
ss9 100000 in gold have been drawn from
the treasury.
These large sums of gold were expended
without any cancellation of the govern
rneut obligations, or in any permanent
v,ay beneftting our people or improving
our pecuniary situation.
The financial events Of last year sug-
rest facts and conditions which should
certainly arrest attention. More than
sf72 100000 in gold have been drawn out
Of the treasury during the year for the
purpose Of shipment abroad or boarding