River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1895-12-26
ASKED TO ACT.
Cleveland Sends Congress a Spe-
cial Mes sage on Finance.
A Critical Condition In Wall Street, and
the Standing OF the Gold Reserve
Calls Out the Document
Needed Legislation.


Needed Legislation.
Washington. Dec. 2l.--In the senate
at 4:30 p. IN. Friday the following spe-
cial message was received from the
president on the subject of bonds:
ITO THE CONGRESS-: In my last annual
message the evils of our present finaL
cial system were plainly pointed out ID
the causes and means Of the depletion Of
gold We're explained II was therein stated
that after all the efforts that had been
made by the executive branch of the gov
eminent to protect our gold reserve o.
the issuance of bonds amounting to more
than $l62. 0o0. 900. such reserve then amount
ed TO but little more than s7S,00u,oO0: thar
about $4,000. 900 had been withdrt from
such reserve during the month he..t pre-
vious to the date of that message. and that
quite large Withdrawals for shipment ia
the immediate future were predicted
THE contingency then feared has
reached US, and the Withdrawals of &c IL
since the communication referred 10 ana
others that appear inevitable threaten
such a depletion In our government goli
reserve as brings US face to face with
the necessity of further action for its pro-
lection. This condition is intensified Dy
the prevalence in certain quarters of sud
den and unusual apprehension and timidity
in business circles. We are in the midst Of
another season of perplexity caused by
our dangerous and fatuous financial OF
erations. These may be expected to reeur
with certainty as long as there IS no
amendment in our financial system. II IN
this particular instance our predicament Is
at all influenced by a recent insistence upon
the position We should occupy IN our re-
iations TO certain questions concerning our
foreign policy. this furnishes a signal ana
impressive warnir g that even the patriotic
of ON la ia "a IA ADJ
substitute for sound financial policy.
"Of course there can be no doubt in any
thoughtful mind as to the complete SOL
yency OF our nation, nor can there be any
just apprehension that the American pao-
pie will be satisfied with less than an honest
payment of our public obligations in the
recognized money of the world. We should
not overlook the fact, however. that
aroused fear is unreasoning and must be
taken into account in all efforts to avert
public loss and the sacrifice of our people :
interests. The real and sensible cure for
our recurring troubles can only be effected
by a complete change in our financial
scheme. Pending that, the executive
branch Of the government will not rela \
its efforts nor abandon its determination
to use every means within it's reach TO
maintain before the world American
credit. nor will there be any hesitation in
exhibiting its confidence in the resources
of our country and the constant patriotism
of our people.
I'm view, however. of the peculiar sitli-
alton now confronting US, have ventured
to herein express the earnest hope that the
congress. in default of the Inauguration of
a better system of finance, will not take a
recess from its labors afore il has by leg
islative enactment or declara ton done
something not only to remind those appre
hensive among our people that the re-
sources of this government and a scrupu-
lous regard for honest dealing afford a SURF
guarantee Of unquestiOned safety ami
sOundness. but to reassure the world that
With these factors and the patriotism Of
our citizens the ability and determinati "a
of our nation TO meet in any circumstances
every obligation 1t incLrs do not admit Of
any question. | ask at the hands of the
congress such prompt aid as il alone has
the power to give TO prevent in a time of
fear and apprehension any sacrifice of the
peoples interest and the public funds or
the impairment of our public credit in an
effort by executive action 20 relieve the
dangers OF the present emergency.
GROVER CLEVELAND
Executive Mansion. Dec. 20. 1885"
The Cabinet Meets.
TIE message was the outcome of a
SESSION of the cabinet. Reports of
the S, rious condition of affairs i'm Wall
street had been coming in for an hour,
were sent rs fast as received to the
treasury officials. who dispatched the
information TO Secretary Carlisle at
the white house.
Thedealings at the New York stock
exchange had been attended with I'M
usual excitement. Before the opening
of the local stock market il was known
there that prices for American secur-
tiles in London had broken anywhere
from one TO four per cent. The result
was great rush to sell stocks. Local
operators, w'o had become weakened
financially by the recent break IN the
industrials, were forced to sell, and
thus add TO the depression. Rumors
of heavy Withdrawals of gold for eX-
port to Europe also had a demoraliz-
ing influence. Again money which
had been ruling at two per cent. and
under to stock exchange borrowers
suddenly rose so per cent. and a NUM-
Der of banks began to call in loans.
This helped to swell the amount of
offerings of long stock and three stock
exchange firms were forced to the
Will. AZ the tonHOAiUhtNu
there were also two small failures.
Before the cabinet session had lasted
two hours, a decision had been reached
to send to congress the message trans
mitted later. At 1880 o'clock the as
sembled officials took recess in order
to give the president an opportunity TO
draft the message. Mr.. Cleveland inn
mediately set to work, and probably
had all his ideas in presentable shape
when his official associates returned
an hour later. BY this time it had be-
come known that the gold withdraw
ais amounted to $3.40O,000, bringing
down the gold reserve to 500, 2SS,0S0,
very nearly to the figure which was
reached at the time of the first bond
issue in February, 1894. 1t was "A
o'clock when the cabinet meeting adj
.iourned. Twenty minutes before that
time Mr.. o. l.. Pruden, assistant secre-
tary to the president, had started from
the white house for the capitol with a
copy of the message to be delivered to
the senate.