The Valentine Democrat. [volume] (Valentine, Cherry Co., Neb.) 1896-1898, 1897-12-09
PRESIDENTS MESSAGE
CONSIDERATION OF THE MONEY
QUESTION MOST PRESSING.
Recognition OF Insurgent Forces
In Cuba-Urgcs Annexation of the
Sandwich Islands.
Presidents Message.

Presidents Message.
To the Senate and House of Representa-
tives: It gives me pleasure to extend
greeting to the Fifty-fith congress as
sembled at the seat Of government, with
many Of whom as senator's and repre-
sentatives ] have been associated in the
Legislative service. Their meeting occurs
under fel.citous circumstances, justifying
sincere congratulation and calling for our
grateful acknowledgment to a bencficent
providence which has SO signally blessed
and prospered us as a nation. Peace and
good will with all the nations of the
earth continue unbroken.
A matter of genuine satisfaction is the
growing feeling Of fraternal regard and
unification or all sections of our country,
the incompleteness Of which has too long
delayed the realization of the highest
blessings of the union The spirit OF pa
Ing In fervor. The public questions which
now most engross us are lifted far above
either partisanship. prejudice or former
part Of our common country alike and
permit of no division on ancient lines.
Questions of foreign policy, OF revenue,
liability OF national obligations. the i'm
provement of the public service, appeal to
the individual conscience of every earnest
citizen to whatever party he belongs or
On whatever section Of the country he may
reside.
The extra session of this congress,
which closed during July last enacted I'M
gortant legislation. and. while its full eff
feet has not yet been realized, what it has
already accomplished assures us Of its
timeliness and wisdom. To test its per
manent value further time will be re
Quired. and the people, satisfied with its
operation and results thus far, are in no
mind to withhold from it fair trial.
Currency Problem Comes First.
The tariff legislation having been set
1n2 ht- ha trp
question pressing for consideration is that
OF the currency. The work of putting our
finances upon a sound basis, difficult as
II may seem. will appear easier when we
recall the financial operations OF the gov
ernment since 1866. On the 30th day of
June Of that year we had outstanding de-
On the 1st Of January, 1879. these liabili-
ties had been reduced to s443. SS9. s.. OF
our interest bearing obligations the fig
ures are even more striking. On July l.,
1866, tho principal OF the interest bearing
debt OF the government was 81. SS2. .33i ,2oS.
On the list day OF July, 1888. this sum had
been reduced to $685., ,037 100. or an aggre-
gate reduction of S1.747. .294.lOS. The in
terest bearing debt of the United States
on the lst day OF December. 1897 was $S47.
865,e20 The government money now out
standing December ID consists Of sS46,-
6S1,o18 OF United States notes: sl07, 7s3, $50
of treasury notes, issued by authority Of
the law Of 1890; 1884 96S, SOB Of silver certifi-
Gates, and s6l. .761 of standard silver dol
With the great resources Of govern
ment, and with the honorable example Of
the past before us. We ought not to hesi-
tate to enter upon currency revision
which will make our demand obligations
less onerous to the government and re-
lleve our financial laws from ambiguity
and doubt. The brief review of what was
accomplished from the close o. the war to
1893 makes unreasonable and groundiess
any distrust either OF our financial abil-
ity or soundness; while the situation from
immediate necessity Of SO legislating as
to make the return of the 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 Is not that our currency Of
every kind is not good. for every dollar
sf It Is good: good because the govern
ment's pledge is to keep it so. and that
pledge will not be br oxen. However, the
guaranty Of our purpose to keep the
pledge will be best shown by advancing
toward Its fulfillment.
The evil of the present system Is found
in the great cost to the government Of
maintaining the parity of our different
forms Of money-that is. keeping all OF
them at par with gold. We surely cannot
poses upon the people even under fairly
prosperous conditions. while the past four
years have demonstrated that it is rot
only an expensive charge upon the gov
national credit.
1t is manifest that we must devise s.me
plan to protect the government against
bond issues for repeated redernptions. We
must either curtan the opportunity for
speculation. made easy by the multiplied
redenaptions OF our demand obligations.
or increase the gold reserve for their re-
demption. We have $90O. 900. 900 Of currency
which the government by solemn enact
ment has undertaken to keep at par with
gold. Nobody is obliged to redeem in gold
required to redeem in gold. The govern
ment is obliged TO keep equal with gold
all its outstanding currency and coin ot-
legations. while its receipts are not re-
Quired to be paid in gold. They are paid
in every kind of money but gold. and the
only means by which the government can
with certainty get gold is by borrowing.
II can get 1T in no other way when it
most needs II. The government. without
any fixed gold revenue. is pledged to
maintain gold redemption, which it 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 constant replenishment
OF the gold reserve. This Is especially so
in times Of business panic and when the
revenues are insufficient to meet the ex-
penseS or the government. At such times
the government has no other way to sup
ply its deficit and maintain redemption
hut through the Increase OF its bonded
debt. as during the administration of my
predecessor. when se62. $1,000 OF az bonds
were issued and sold and the proceeds
used to pay the expenses OF the govern
ment in excess OF the revenues and sus-
tain the gold reserve. While 1t is true
that the greater part OF the proceeds OF
these bonds were used to supply deficient
revenues. a considerable portion was re-
Quired to maintain the gold reserve
With our revenues equal TO our ex-
penses. there would be no deficit reouir-
ing the issuance Of bonds. But II the gold
reserve falls below 500 ooO COO how Will it
be replenfshed except by selling more
bonds? Is there any other way practical
BILE under existing law? The serious cues-
tion, then. is, shall we continue the policy
that has been pursued in the past{ that
se. when the gold reserve reaches a point
OF danger issue more bonds and supply
the needed gold, or shall we provide other
means to prevent these recurring drains
upon the gold reserve? II no further leg
tslation is had, and the policy of selling
bonds Is to be continued, then congress
should give the secretary OF the treasury
authority to sell bonds at long or short
periods, bearing q less rate of interest
than is now authorized by law.
1 earnestly recommend as soon as the
receipts Of the government are quite suf-
fcient to pay all the expenses of the gov
ernment. that when any of the United
States notes are presented for redemp-
fion in gold. and are redeemed in gold