The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-07
PRESIDENTS MESSAGE.
HB URGES CURRENCY Reform As
AN IMMEDIATE NECESSITY.

BeOoumondn That when the Revenues Are
sumcisnt ts Fay the Expenses, Notes
which tho Gsvornmsnt Redssss In Cole
Shall He Rcissued Only In EHchsnGe for
~aeia-DscIares Against the Recognition or
Cuban noniEerency as Uawisc. ana There
fors nndmisaibIe-Ever Censideration or
Dignity ana Honor Requires tho Ratification
or the Hawaiian Treaty or Annexation.
WARRINGTON, Dec. 6.-President Mckinley
sent tho following message to Congress to-day:
10 ts Senate AVID House Of Representatives;
1t gives mo pleasure to extend greeting to the
bfty.nfth Congress, assembled In regular session
at the seat OF government, with many of whose
Senators and Representative have boon associ-
ated In the legislative service. Thor meeting 90
ours under folicitous conditions, justifying sim
oero congratulation, and calling for our CRATE
full acknowledgment to q benolcent Providence.
which has 30 signally blessed and prospered
us as n nation. Peace and good will with all
the nations of the earth continue unbrokcu. A
matter OF genuine satisfaction is tho growing
feeling OF fratornRl regard and uniication OF all
sections Of our country, tho Incompetence Of
which has too long delayed realization of the
highest blessings of the Union. The spirit OF
patriotism 10 universal and 10 ever increasing
In fervor. The public questions which now most
ongross us arc lifted far above either partisan
ship. prejudice. or former sectional differences.
They effect overy part of our common country
alike md permit of no division on ancient lines.
Questions OF foreign policy, of revenue, the
noundness Of the currency. the inviolability Of
national obligations. the improvement Of the
public service. appeal to the individual con-
science of every earnest citizen, to whatever
party he belongs or in whatever section OF the
country he may reside.
Tho extra session OF this Congress, which
closed during July last. enacted important leg
~islation, and while its full effect has not yet
been realized, what it has already Accomplished
assures US Of its timeliness and wisdom. To
test its permanent value further time will DO
required, and the people. satisfied with its OPP
GRAFTON and results thus far. are In no mind to
withhold from 1t q fair trial.
CURRENCY REVISION A NECESSITY.
Tariff legislation having been settled by the
extra session Of Congress, the question next
pressing for consideration 10 that of tho cur
rency. The work of putting our finances upon
. sound basis, difficult as It may seem, will
appear easier when We recall the financial oper-
ations OF the Government since 1866. On the
Soth day of juno Of that year we had outstandr
Ing demand liabilities in the sum Of $72s, $685.
A<7.z1. On the LIST of January. 1879. these
liabilities had been reduced to S443. $780,
1e5. sS. or our interest-bearing obligations the
figures are even moro striking. On July /.
1860, the principal of tho interest.bearing debt
OF the Government was 81, 332, 1871. 2Os. On the
hrst dny Of July, 1898. this sum had been re-
duced to 1885, 37, 100. or an aggregate reduc-
duction of 81. 74s. 2s4. 1os. The interest bearing
debt OF the United States on the first day OF De-
cember. 1897, was $s47. 1895. 500. The Govern
mont money now outstanding doc. ~ consists
of $346, 6sl. 016 OF United States notes. $107,-
7e3.2so of Treasury notes issued by authority
of tho law of 1890. 1884. 1858. 5oA of silver Ger
tihcates. and $61, 26o. 761 of standard silver
dollars.
with the great resources OF tho Government.
and with the honorable example of tho past be-
fore us. we ought not to hesitate to enter upon
q currency revision which will mako our do
mand obligations less onerous to tho Govern
ment and relieve our financial laws from am
biguity and doubt Tho brief review Of what
was accomplished from tho close of the war to
1898 makes unreasonable and .Rroundless any
distrust either Of our financial ability or sound
ness; while the situation from 1893 to 1897 must
admonlsh Congress Of the immediate necessity
of SO logislating as to make the return of tho
conditions then prevailing impossible.
There are many plans proposed as q remedy
for the evil. Before we can find the true remedy
We must appreciate the real evil. 1t Ia not that
our currency Of every kind is not good. for every
dollar OF it Is good; good because the Govern
ment's Pledge is out to keep 1t 30, and that
pledge will not DO broken. However. the guar
antee of our purpose to keep the pledge will BIO
best shown by advancing toward its fulflment.
EVIL OF THE PRESENT SYSTEM.
The evil of the present system Is found in the
great cost to tho Government of maintaining
the parity of our different forms of money; that
10, keeping all OF them at par with gold. We
surely cannot be longer needless of the burden
this imposes upon the people. even under fairly
prosperous conditions, while the past four years
have demonstrated that it is not only an expen-
Bive charge upon the Government, but o dan
gerous menace to the national credit.
It is manifest that we must devise some plan
to protect tho Government against bond issues
for repeated redcmptions. We must either cur
tail the opportunity for speculation, made easy
by tho multiplied rcdcmptions of our demand
obligations, or increase the gold reserve for their
redemption. We have 5000. 600, 900 of currency
which the Government by solemn enactment
has undertaken to keep at par with gold. No
body is obliged to redeem in gold but the Gov
eminent. The banks are not required to redeem
in gold. The Government is obliged to keep
equal with gold all its outstanding cur
rency and coin obligations, while Its receipts
are not required to be paid in gold. They are
paid in every kind OF money but gold, and tho
only means by which the Government can with
certainty get gold is by borrowing. 1t can get 1t
in no other way when 1t most needs 1t. Tho
Government, without any fixed gold revenue. IL
pledged to maintain gold redemption. which 1t
has steadily and faithfully done, and which,
under the authority now given. it will continue
to do.
The law which requires the Government. after
having redeemed its United States notes, to pay
them out again as current funds. demands a
constant replenishmcnt OF the gold reserve.
This is especially so in times of business panic
and when the revenues arc insufficient to meet
the expenses OF the Government. At such
times tho Government has no other way
to supply its deficit and maintain re-
demption but through the increase of its
bonded debt, as during ihc administration
OF my predecessor, when $262. $4,000 OF 4Ia
per cent. bonds were issued and sold and the
proceeds used to pay tho expenses Of tho Gov
erDment in excess of the revenues and sustain
tho mold reRerye. With anr ravannaa auual