The silver star., 1897-12-09

greSS tO-ttuys WIS as IOllOWS:
10 the Senate and House of Represen-
tatives:
1t gives me pleasure to extend greet
ing to the Fifty-fifth Congress assem-
bled In regular session mt the seat of
government, with many of whose SEN
ators and representatives | have been
associated In the Legislative service.
The meeting occurs under felcitous
conditions, iustifying sincere congratu-
lntiOns and calling for ever grateful
acknowledgment to n beneficent Provi-
dence, which has so signally blessed
and prOspered us as n nation. Peace
and good will with all the nations of
the earth continue unbroken.
A matter of genuine satisfaction Ia
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
cnces. They affect every part Of our
common country alike and permit of
no division on ancient lines.
Questions of foreign policy, the
soundness of the currency, the inviola-
bility of national obligations, the i'm
provement of the public service, appeal
to the individual conscience of every
earnest citizen of whatever pnrty he
belongs or In whatever section of the
country he may reside.
The extra session of Congress which
closed during July last enacted i'm
pOrtant legislation. and while its full
effect has not yet been realized, what
1t has already accomplished assures us
of its timeliness and wisdom. To test
It's permanent value. further time Will
he required. and the people, satisfied
with its operation and results thus far.
are in no mind to withhold from 1t n
fair trial Tariff Legislation having been
settled. the question now pressing for
consideration Is that of the currency.
The work of putting our finances up
OH II sound basis, difficult as 1t may
seem. will appear easier when we re-
call the financial operations of the gov
ernment since 1866. On the 30th day
Of June OF that year we had Outstand-
ing demand liabilities in the sum OF
SIPS. .SGS. .447.41. On the LIST day of Jan
uary, 1897. these had been reduced to
S443, $50, 1888. OF our intercst-bearing
obligations the figures are even more
striking. On July I. 1866. the princi-
pal was $2.332, 331 POS. On the LIST day
OF July. 1903. this sum had been re-
duccd to $5S5.O31. 100. The interest
bearing debt of the United States on
the list iny OF December, 1897, was
$S47 ,36l. 600.
nf tInn "
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-
plisled 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 adm0nish Congress Of the imme-
dinte necessity of legislnting to make
the return Of the conditions then pre-
vaIllng impossible.
Evil Of the Financial system.
There nre many plans proposed ns n
remedy for the evil. Before we can find
the true remedy we must appreciate
the true evil. 1t IL not that our cur
rency OF every kind IL not good, for
every dollar IL good, because the gov
ernment's pledge IL out to keep 1t so.
and TINT pledge will not be broken. The
evil OF the present system IL found In
the great cost of maintaining the par.
ity OF our different forms OF money.
TINT IL, keeping all Of them mt pnr with
gold, 1t In manifest we must devise
some plan to protect the government
ngninst bond issues for repeated re-
dcmptlon. We must either curtnll the
opportunity for speculation. made easy
by tho multiplied redemption of our
obligations, or increase the gold re-
serve. We lnve $00O.OO0.O0O current.
which the government. by solemn Oh
nctment, hns undertaken to keep at
pnr. Nobody IL Obliged to redeem In
gold but the government. The banks
nre not required to redeem In gold.
The government II Obliged to keep
equnI with gold NIL lts outstanding cur
rency, while ita receipts nre not re-
quired to be paid In gold. They are
pnid In every kind Of money. but the
only mems by which the government
cnn get gold IL by borrowing. This II
especially NO I'm times Of business panic.
M during the administration Of my
predecessor. when tho proceeds OF
SOC, ,315, 400 OF bonds were Issued to
pny the expenses OF the government IN
excess OF the revenues. and sustain the
gold reserve. With tho revenues cqunl
10 oiir expenses there would De no
deficit requiring the Issue Of bonds. hut
II the gold reserve falls below xiOO..
OOO.OOO. how will II be rcplcnislicd ex'
ccpt by selling more bondsf
II there nny other practicable way
under existing lnwf n no further leg
islation In hnd. and the policy OF sell
ing bonds continues, then Congress
should give the secretary OF the treas
TRY authority to sell bonds benrlng q
lcxs rnte Of Interest than now author
lied.
earnestly recommend nS soon NJ
the receipts Of the government nrs
sufiiclent to pny its expenses thn'
when any United States notes nre re-
deemed In gold such notes shall bt
kept apart and only paid out In ex
Chanaa Hnp mid. This n nm ObviOt1i