Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1895-01-31
TO AVERT TROUBLE.
The President Appeals to
Congress to Prevent An
other Crisis.
UNCLE SAM is IN A DILEMMA.
A Special Message Abandon
ing the Carlisle Plan and
Urging Another.

WASHINGTON, Jan. 20 line presluenJ sent
both houses Of congress to-day a message on
the financial question, Withdrawing his sup
port from the plan outlined in the Carlisle
bill and outlining the only policy which seems
TO him now possible to maintain the geld re-
serve. The message is lengthy aud clearly
defines the presidents position. lie says:
The emergency now appears so threatening
that deem IL my duty to ask at the hands of
the legislative branch of the government such
prompt and effective action as will restore
confidence in our financial soundneso and
avert the business disaster and universal dis
tress among our people Whatever may be
the merits of the plan outlined Ia my annual
message as remedy for the ills then existing
and as safeguard against the depletion OF
the gold reserve then in the treasury, am now
convinced that its reception by congress and
our presented advanced stage Of fnancial per-
plexity necessitates additional or different
legislation.
The real trouble which confronts us con-
sists OF lack of confidence widespread and
constantly increasing, in the continuing a6il-
lily or disposition OF the government TO pay
its obligations 10 gold. This lack OF conf
dence grows to some extent out 0f the paipa-
BILE and apparent embarrassment attending
the efforts OF the government u3der existing
laws TO procure gold, and To great extent
out OF the impossibility of either keeping 1t In
the treasury or cancelling obligations by
it's expenditure afte- IL is obtained.
The only way left open for the
government Of procuring gold 10 by the issue
and sale Of its bonds. The only bonds that
can be issued were authorized nearly twenty
five years ago aud are no: wen calculated TO
meet our present needs. Among other disad-
vantages they are made payable In coin in
stead OF specifically In gold, which, under ex-
listing conditions, detracts largely and In an
Snl In frN,, hail tn
vestments. 1t is certain that bones Of this
description can not much longer be disposed
OF ut u price creditaOle TO the financial char
acter of our government
That most dangerous and irritating feature
OF the situation, however, remains to be men
toned, 1t is found in the means by which tue
treasury is dispossessed Of the gold
thus obtained without cancelling a
single government obligation and sole
ly for the benefit Of those who
find profit In shipping it abroad or whose
fears induce them to board at home. We
have outstanding about five hundred millions
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 he reissued. Thus the same notes may
do duty many times in drawing gold from the
treasury; nor can the process he arrested as
long as private parties for prof. or otherwise
see an advantage in repeating the operation.
More than three hundred millions OF dollars
in these notes have already been
redeemed in gold and Notwithstanding such
redemption they are still outstanding. Since
the 18th day of January, 1894, our bonded
Understanding deDt has been increased
500 000, 600 for the purpose Of obtaining gold
to replenish our coin reserve. Two issues
were made amounting to fifty millions each
one in January and the other Ia November.
AS n result of the first issue there was realized
something more than tifly-eight millions OF
dollars Ia gold Between that issue and the
succeeding one In November, comprising
period OF about ten months, nearly one hun
dred and three millions Of dollars in gold we're
drawn from the treasury. This made II sec
ond issue necessary and upon that more than
fifty Height millions 10 gold was again realized
Between the date OF this second
issue and the present time, covering
a period OF about two months, more than
sixty-nine millions of dollars In gold have
drawn from the treasury. These large sums
OF gold were expended without any cancella-
ton Of government obligations or In any per-
maneat benefit to our people or improvement
Of our pecuniary situation
The financial events of the past year suggest
facts and conditions which should certainly
arrest attention. More than one hundred and
seventy-two millions Of dollars In gold have
been drawn out OF the treasury
ment abroad or boarding at home. While
nearly one hundred and three millions
of this amount were drawn out during the
FIRST ten months of the year, sum aggregat-
ing more than two-thrds OF that amount,
being about sixty-nine millions. was drawn
out during the following two months, thus
indicating marked acceleratior OF the de-
plotting process with the lapse OF time. The
notes upon which this gold has been with
drawn from tho treasury are still outstanding
and are available for use In repeating the
exhausting operation at shorter intervals as
our perplexities accumulate.
Conditions are certainly supervenng tend
ing to make the bonds which may be issued
TO replenish our gold less useful for that pur-
pose. An adequate gold reserve is 10 all cir
cumstances absolutely essential TO the uphold
ing of our public credit and TO the maiDten-
ance of our high national character. Our
gold reserve has again reached such stage
of diminution as to require It's speedy rein
forcement
The aggravations that must inevitably fol-
low present conditions and methods will GER
tainly lead TO misfortune and loss not only TO
our national credit and prosperity aud fnan-
cial enterprise but to those OF our people who
seek employment as means Of livelihood
and to those whose only capital Is their daily
labor. IL will hardly do to say that simple
increase of revenue will cure our troubles.
The apprehension now existing and constantly
increasing as TO our financial ability does not
rest upon a calculation of our revenue. The
time has passed when the eyes of Investors
abroad and our people at home where 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 10 now In the treasury
comfortable surplus of more than sixty-three
millions of dollars, but IL 10 not In gold and
therefore does not meet our difficulty. Our
differences OF opinion concerning the extern TO
which oliver ought to be coined or used
10 our currency should not interfere with the
counsels of those whose duty 1t is To rectfy
the evils now apparent 10 our financial situa-
ton. They have TO consider the question OF
national credit and the consequences that
will follow from It's collapse. Whatever ideas
may be insisted upon as 10 whether silver or
bi-metaism is the proper solution OF the
question now pressing upon US only requires
recognition Of gold as well as silver and
concession of its importance, rightfully or
wrongfully acquired, as the basis OF national
credit, necessity 10 the honorable discharge
OF our obligations pay able in gold and badge
Of solvency. / do not understand that
the real friends OF silver desire
the condition that might follow
inaction or neglect to appreciate tue meaning
of the present exigency II It should result in
the entire Punishment of gold from our finan-
cial and currency arrangements Besides the
treasury notes which certainly should be paid
In GOLD amnnptiru IN nearly five hundred mil