The San Francisco call., 1897-12-07
Devoted Very Largely to
Cuba and the Question
Of Currency.
The President Urges the Annexation of
Hawaii, but Admits There Are Elements
III Its Population Not Exactly Adapted
for Citizenship.
CALL OFFICE, RIGGS HOUSE,
w ASHINGTnN Dacen, har


OF the Fifty-Efth Congress, is a follows:
To The Senate and House of Representatives,
II gives me pleasure To extend greeting to
the Flfty-h tn Congress assembled in regular
session at the seat OF Government, with many
q those Senators ard Representatives have
been associated in the legislative service.
Their meeting occurs under felicitous condi-
lions, jusIifying sincere congratulations and
calling for our grateful acknowledgment to a
tenefcent Providence. which has so signalIy
blessed snd prospered US as a nation Peace
with ali the nations of the earth continues
IN broken.
A matter OF genuine satisfaction is the grow
ing ceiling OF traternal regard and unification
OF all sections of our country, the incomplete
ness OF which has too long delayed realization
o- the highest blessings OF the Union. The
>pirIt OF patriotism Is universal and is ever
increasing IN ferYOr. The public questions
which now most engrosS us are lifted lar above
either partisanShip rejudice or former sec
ttonal diff -reuces. Tney affect every part OF
our common country alike and permit of no
division on ancient lines Questions of for
eign policy, OF revenues, the soundness OF the
currency, the inviola bility Of national obligs-
uons, the lmproyem mt OF the public service,
app al 10 the individual conscience of every
earnest citizen 10 whatever party he belongs
or IN whatever section OF the country he may
reside.
closed during Juy last enacted important
legislation, and, while its full effects have not
yet been realized, what il has already accom-
p.ish assures US OF its imeliness and wis
dom To test its permanent value further
time Will be req uired, and the people. satisfied
with It's operation aud results thus far, are in
no mind 70 wi hhold from 1t fair trial.
Tariff legislation
Tariff Settled, the having been settled
Currency Comes Up. by the extra session
OF Congress, the
A question next pressing Tor consideration is
tnat OF the currency. The work OF putting
our finances upon sound basis, difficult as it
nay seem, Will appear easier When we recall
. Inc financial CD ration OF the Government
since 1866 On June 80 OF that year we had
Outstanding :naud liabilities in the sum of
S72S. SOS, 447 IL. On January !, 1879, these
liabl ities had been reduced to SAB. .SS9.-
49J SIS OF cur intere> t-bearing Obligations
lie figures are even more striking. On
July l, 1866, the principal OF the in
terest-beaTihg debt of the Government was
y, 49,, 33l, ,20S On July l, 1898 this sum
mad been reduced to $3.50 OBJ 100 or an ag-
gTegate reduction OF IL, 747, ,294 10S. The
interest bearing debt OF the United States on
Decem her l. 1897, was SS47 ,365, $40. The
Government money now outstanding de
Cember l. consists of S346. .6S1 ,Ol6 OF United
Sales notes, $1O7, 1913, $50 OF Treasury notes
1854 .963 5O4 of silver cert fcates and $6l,-
2sO,7 OF standard silver dollars.
With the great resources of the Government,
ana with the time honored example of the
past before u.s. We ought not hesitate to enter
upon currency revision which will make
our demand obligations less onerous to the
Government and relieve our financial laws
fIOm ambiguity and doubt.
The brlei review OF what was accomplish he'd
from the close OF the war until 1898 makes
unreasonable and groundless any distrust
either OF our financial ability OF
sounduess; while the situation from 1898 to
1897 must admonish Congress of the i'm medI-
ate necessity of so Ieeislating SIS to make the
return Of the conditions then prevailing i'm
possible.
There are many plans proposed as remedy
for the evil Before We can find the true rem
edy we must appreciate the real evil. 1t is
not that our currency OF every kind is not
good because every dollar of il is good; good
because the Governments pledge is out 10 keep
it so, and that pledge VIII not be broken.
However. the guaranty OF our purpose to keep
the pledge i'll BE- best shown by advancing
toward its II fIlment
The evil 0 the present system is found in
the great st to the Government in main
tanning the parity ot our different lorms of
money, that is, keeping all of them at par
with gold. We surely cannot be longer heed
pie. even under fairly prosperous conditions
while the past four years have demonstrated
that it is not only expensive charge unon
the Government but dangerous menace to
the national credit.
1t is manifest that
Stop the Chain we must devise some
oi Bona Kedem ptIon. plan TO protect
the Government
sCains tbond issues for repeated redemptlons
We must either curtan the opportunity tor
SPECULATION, made easy BY the multtnIted re-
demptions OF our demand obligations or in
crease the gold reserve for their redemption
We have 5000, ,00O, 900 of lrrency which the
Government, by so.emn ;actment has nm
dertaken 10 keep at par with gold. NOBODY is
obliged to redeem in gold but the Govern
ment- The banks are not required to redeem
in gold. The Government is obliged to keen
equal with gold all its outstanding currency
and coin obligations, while its receipts are OF
required to be paid in gold. They are maid in
every kind of money but gold, and the only
means by which the Government can, with
certainty, get gold is by borrowing Il can
getit in no other way when it most needs it
The Government without any fixed gold reve-
nue., is pledged TO maintain 60 REDEMPTION
which it has steadily and fai thfully done, and
which, under the uthority now given it, will
continue to do.
Tae law whicl requires the Government
after having redeemed its notes to pay them
out again as current funds, demands a con-
slant replenishment of the gold reserve. This
Is especially so in times of business panic and
when the revenues are insufficient to meet tn e
expenses of the Government. Al such times
the Government has no other way 10 supply
its deficit and maintain REDEEM ption but
through the increase of its bonded debt, at
the urgent administra ton OF my predecessor,
when $262 315.4U0 of AZ per cent bonds were
issued and sold and the proceeds used 10 pay
the expenses OF the Government in excess OF
revenues and sustain the gold reserve. While
II IS true that the greater part of the proceeds
OF these bonds were used 10 supply deficient
revenues, considerable portion was required
to maintain the gold reserve.
"lth our revenues equal TO our expenses.
here would be no deficit requiring the issu.