The silver lance., 1897-12-10

message, which was submitted to Con-
gress to-day, was as follows:
TO the Senate and House of Represen-
tatiyes:
1t gives me pleasure to extend greet
ing to the Fifty-fifth Congress assem-
bled in regular session at the seat of
government, with many of whose SEN
ntors and representatives l have been
associated in the legislative service.
The meeting occurs under felicitous
conditions, justifying sincere congratu-
lations and calling for ever grateful
acknowledgment to a beneficent Provi-
dence, which has so signally blessed
and prOspered us as nation. Peace
and good will with all the nations of
the earth continue unbroken.
matter of genuine satisfaction is
the growing feeling of fraternal regard
and unification of all sections of our
country. the incompleteness of which
has too long delayed realization of the
highest blessings of the Union. The
spirit of patriotism is universal and is
ever increasing in favor. The public
questions which now most engross us
are lifted far above either partisanship
prejudice or former sectional differ
ences. They affect every part Of our
common country HIKE anu peihit u
no division on ancient lines.
Questions of foreign policy, the
soundness of the currency, the inviola-
bility of national obligations, the i'm
proyement of the pubic service. appeal
to the individual conscience of every
earnest citizen of whatever party he
belongs or in whatever section OF the
country he may reside.
Of
closed during July last enacted i'm
portant legislation. 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
be required, and the people, satished
with its operation and results thus far,
are in no mind to withhold from 1t q
fair trial Tariff legislation having been
settled, the question now pressing Tor
consideration is that of the currency.
The work of putting our finances up
on a sound basis, difficult as 1t may
seem, will appear easier when we re-
call the financial operations of the gov
ernmeut since 1866. On the 3Oth day
of June of that year we had outstand-
ing demand liabilities in the sum OF
S72S, ,S6S, ,447.41. On the 1st day OF Jan
uary, 1897. these had been reduced to
S443, ,SS9, ,493.SS. OF our interest-bearing
obligations the figures are even more
striking. On July 1, 1866, the princi-
pal was 81. 1872 ,331. POS. On the list day
of July, 1893, this sum had been re-
duced to $685., ,O37 100 The interest.
bearing debt of the United States on
the 1st day of December, 1897, was
SS47. .365, ,62O.
With the great resources OF the gov
ernment, and with the honorable exam
pie of the past before us, we ought not
to hesitate to enter upon currency
revision, which will make our demand
obligations less onerOus, and relieve our
financial laws of ambiguity and doubt.
The brief review of what was accom-
plished from the close of the war to
1893 makes unreasonable any distrust
of our financial ability and sOundness,
while the situation from 1893 to 1897
must admonish Congress of the imme-
diate necessity of legislating to make
the return of the conditions then pre-
vailing impossible.
Evil of the Financial System.
There are many plans proposed as a
remedy for the evil. Before we can find
the true remedy we must appreciate
rency of every kind is not good, for
every dollar is good, because the gov
ernment's pledge is out to keep 1t so,
and that pledge will not be broken. The
evil of the present system is found in
the great cost of maintaining the par
ity of our different forms Of money
that is, keeping all of them at par with
gold. 1t is manifest we must devise
some plan to protect the government
against bond issues for repeated re-
demption. We must either curtail the
opportunity for speculation. made easy
by the multiplied redemption OF ouI
obligations, or increase the gold re-
serve. We have 5000. 100000 current
which the government. by solemn en-
actment. has undertaken to keep al
par. Nobody is obliged to redeem In
gold but the government. The banks
are not required to redeem in gold
The government is obliged to keeT
equal with gold all it's outstanding cur
rency, while its receipts are not re
quired to be paid in gold. They are
paid in every kind of money, but the
only means by which the government
can get gold is by borrowing. This Ii
especially so in times Of business panic
as during the administration of my
predecessor, when the proceeds ol
$500, ,315, 400 of bonds were issued tt
pay the expenses of the government il
excess of the revenues, and sustain the
gold reserve. With the revenues equa
to our expenses there would be NJ
deficit requiring the issue of bonds bu
If the gold reserve falls below 500,
100000. how will it be replenished ex
cept by selling more bonds?
Is there any other practicable wa!
under existing law? If no further leg
islation is had, and the policy of sell
ing bonds continues, then Congress
should give the secretary of the treas
ury authority to sell bonds bearing
less rate of interest than now author
lied
earnestly recommend as soon a