The Butler Weekly Times Newspaper, December 5, 1895, Page 6

i THE MESSAGE. The President Sends in His Com-| munication to Congress. THE GOVERNMENT'S FOREIGN POLICY The Potots in Dispute with Great Britain— The Financial Situation Dwelt on st . Length—The Bond Iseue—Free % Sliver Coinage Thought - to Be a Menace to Prosperity. WaAsuinGron, Dec. 3.—The president sent in the following message to con- gress: Foreign Relations. The present assemblage of the legislative branch of our government oceurs at a time when the interests of our people and the needs of the country give especial prominence to the condition of our foreign relations and the exi- geneies of our national finances. The reports of the heads of the several administrative de- partments of the government fully and plainly exhibit what has been accomplished within the scope of their respective duties and pre- sent such recommendations for the better- ment of our country's condition as patriotic and intelligent labor and observations suggest. I therefore deem my executive duty ade- quately performed at this time by presenting to congress the important phases of our situa- tion as related to our intercourse with foreign nations, and a statement of the financial prob- lems which confront us, omitting, except as they are related to these topics, any reference to departmental operations. I earnestly in- vite, however, not only the careful considera- tion, but the severely critical scrutiny of the congress and my fellow countrymen to the re- ports concerning these departmental operations. If justly and fairly exam- ined they furnish proof of assiduous and painstaking effort for the public welfare. I press the recommendations they contain up- on the respectful attention of those charged with the duty of legislation, because I believe their adoption would promote the people's good. By amendatory legislation in January last, the Argentine Republic. recognizing the value of the large market opened to the free impor- tations of {ts wool under the last tariff act has admitted certain products of the United States toentry at.reduced duties. It is pleasing to note that the efforts we have made to enlarge the exchanges of trade on a sound basis of mutual benefit are in this instance appreciated by the country from which our woolen facto- ries draw their needful supply of raw material. ‘The missions’ boundary dispute between the Argentine Republic and Brazil, referred to the president of the United States as arbitrator during the term of my predecessor and which was submitted to me for determination re- sulted fn an award in favor of Brazil upon the historical and documentary evidence presented, thus ending a long protracted controversy and again demonstrating the wisdom and desira- bility of settling international boundary dis- putes by recourse to friendly arbitration. Negotiations are progressing for a revival of the United States and Chilfan claims commts- sion, whose work was abruptly terminated last year by the expiration of the stipulated time within which awards could be made. The resumption of specie payments by Chill 1s a step of interest and importance, both in its direct consequences upon her own welfare as evincing the tendency of sound financial prin- ciples in one of the most influential of the South American republics. The close of the momentous struggle be- tween China and Japan, while relieving the diplomatic agents of this government from the delicate duty they undertook at request of both countries of rendering such service to subjects of either belligerent within the territorial limits of the other as our neutral position permitted developed a domestic condition in the Chinese empire which has caused much anxiety and called for prompt and careful attention. Either as a result of a weak control by the central government over the provincial ad- ministrations, following @ diminution of tra- ditional government authority under the stress of an overwhelming national disaster, or a manifestation upon geod opportunity of the aversion of the Chinese population to all foreign ways and undertakings, there have occurred in widely separated provinces of China serious outbreaks of the old fanatical spirit against foreigners, which, unchecked by the eeal authorities, if not actually conntved at by them, have cul- minated in mob attacks on foreign missionary stations, causing much destruction of property and attended with personal injuries as well as loss of life. Although but one American citi- zen was reported to have been actually wound- ed, and although the destruction of property may have fallen more heavily upon the mis- stonaries of other nationalities than our own, it plainly behooved this government to take the most prompt and decided action to guard against similar or perhaps more dreadful ca- lamities befalling the hundreds of American mission stations which have grown up ‘hroughout the interior of China under the temperate rule of toleration, custom and im- perial edict. The demands of the United States and other powers for the degradation and punishment of the responsible officials of the respective cities and provinces who by neg- lect or otherwise had permitted uprising and for the adoption of stern measures by the em- peror's government for the protection of the life and property of foreigners, were followed by the disgrace and dismissal of certain pro- vincial officials found derelict in duty, and the punishment by death of a number of those ad- judged guilty of actual participation in the out- rages. This government also insisted that a special American commission should visit the province where the first disturbances occurred for the purpose of investigation. This latter commis- sion. formed after much opposition, has gone overland from Tien Tsin, accompanied by a suitable Chinese escort, and by its demonstra- tion of the readiness and ability of our govern- ment to protect its citizens, will act, it is be- lieved, as a most influential deterrent of any similar outbreaks. The energetic steps that have thus far been taken are all the more like- ly to result in future safety to our citizens in China, because the imperial government is, I am persuaded.entirely convinced that we desire only the Mberty and protection of our own citizens and redress for any wrongs they may have suffered, and that we have no ulterior de- signs or objects, political or otherwise. China will not forget either our kindly service to her citizens during her late war, nor the further fact that while furnishing all the facilities at our command to further the negotiation of peace between her and Japan we sought no advantages and interposed no counsel The governments of both China and Japan have in Special dispatches transmitted through their respective diplomatic representatives ex- pressed in a most pleasing man- ner their grateful appreciation of our assistance to their citizens during the unhappy struggle and of.the value of our aid in paving the way to their resumption of peace- ful relations. The customary cordial relations between this country and France have been undis- turbed, with the exception that a full explana- tion of the treatment of John L. Waller by the expeditionary military authorities of France still remains to be given. Mr. Waller, formerly United States consul at Tamatave, remained in Madagascar aftar his term of office expired, and was apparently successfull in procuring business concessions from the Hovas of greater or less value After the occupation of Tamative and the @eclaration of martial law by the French he was arrested upon various charges, among them that of communicating military informa- tion to the enemy of France, was tried and convicted by a military tribunal and sen- tenced to twenty years’ imprisonment. Fol- lowing the course justified by abundant prec- edent, this government requested from that of France the record of the of the French tribunal which resulted in Mr. Wal- Yer’s condemnation. This request has been complied with to the extent of supply- ing a copy of the official record, from which appear the constitution and organization of the court, the charges as for- mulated and the general course snd result of the trial and by which it is shown that the ac- cused was tried in open court and was defend- ed by counsel. But the evidence adduced in support of the charges. which was not received by the French minister of foreign affairs till the first week in October, has thus far been withheld, the French government taking the ground that its production in response to our demand would establish a bad precedent. The efforts of our ambassador to procure it, however, though impeded by recent changes in the French ministry, have not been relaxed and it is confidently expected that some satisfactory solution of the matter will be reached Meanwhile it ap- pears that Mr. Wallers’ confinement has every alleviation which the state of his health and all the other circumstances of the case de- mand or permit. In agreeable contrast to the difference above noted respecting a matter of common concern, where nothing is sought ex- cept such @ mutually satisfactory outcome as the true merits of the case require, isthe re- cent resolution of the French chambers favor- ing the conclusion of & permanent treaty of ar- Ditration between the two countries. An invitation has been extended by France to the government and people of the United States to participate in the great national ex- position at Paris in 1899-1900 as the suitable commemoration of the close of this, the world's marvelous century of progress. I heartily rec- ommend the acceptance, together with such legislation as will adequately provide for a due representation of this government and its peo- ple on the occasion. Our relation with the states of the German empire are in some aspects typical of a con- dition of things elsewhere found in a country whose productions and trade are similar to our own. The close rivalries of competing in- dustries; the influence of the delusive doctrine that the internal development of a nation is promoted and its wealth increased by a policy which, in under- taking to reserve its home markets for the ex- elusive use of its own producers, necessarily obstructs their sales in foreign markets and prevents free access to the products of the world; the desire to retain trade in time-worn ruts, regardless of the inexorable laws of new needs and changed conditions ef demand and supply, and our own halting tardiness in invit- ing a free exchange cf commodities and by this means imperiling our footing in the external markets naturally open to us, have createda situation somewhat injurious to Ameri- can export interests, not only in Ger- many, where they are perhaps most noticeable, but in adjacent countries. The exports affected are largely American cattle and other food products, the reason assigned for unfavorable discrimination being that theirconsumption is deleterious to the public health. This is all the more irritating in view ofthe fact that no European state is as jealous of the excellence and wholesome- ness of its exported food supplies as the United States, nor so easily able on account of inherent soundness, to guarantee these qual- ities. Norare these difficulties confined to our food products designed for exportation. Our great insurance companies, for example, having built up a vast business abroad and invested a large share of their gains in foreign countries in compli- ance with the local laws and regulations then existing, now find themselves within a narrowing circle of onerous and unforeseen conditions, and are confronted by the necessity of retirement from a field thus made unprofit- able, if, indeed, they are not summarily ex- pelled, as some of them have lately been from Prussia. Itis not to be forgotten that inte national trade cannot be one sided. Its cur- rents are alternating and its movements should be honestly reciprocal. Our relations with Great Britain, always intimate and important, have demanded, dur- ing the past year, even a greater share of con- sideration than is usual Several vexatious questions were left undetermined by the de- cision of the Behring sea arbitration tribunal, ‘The application of the principles laid down by that august body has not been followed by the results they were intended to accomplish, either because the principles themselves lacked in breadth and definiteness or because their execution has been more or less imper- fect. Much correspondence has been exchanged between the two governments on the subject of preventing the exterminating slaughter ofseals, The insufficiency of the British patrol of the Behring sea under the regulations agreed on by the two governments has been pointed out, and only two British ships have done police duty during this season in these waters. The need of a more effective enforcement of exist- ing regulations, as well as the adoption of such additional regulations as experience has shown to be absolutely necessary to carry out the in- tent of the award, have been earnestly urged upon the British government, but thus far without effective results. In the mean time the depletion of the seal herds by means of pelagic hunting has so alarmingly progressed that unless their slaughter is at once effectively checked their extinction within a few years seems to be a matter of absolute certainty. The understanding by which the United States was to pay and Great Britain to receive a lump sum of $425,000 in full settlement of all British claims for damages arising from our seizure of British Sealing vessels unauthorized under the award of the Paris tribunal of arbitration was not confirmed by the last congress, which de- clined to make the necessary appropriation. I am still of the opinion that this arrangement was a judicious and advantageous one for the government, and I earnestly recommend that it be again considered and sanctioned. If, however, this does not meet with the favor of congress, it certainly will hardly dissent from the proposition that the government is bound by every consideration of honor and good faith to provide for the speedy adjustment of these claims by arbitration as the only other alter- native. A treaty of arbitration has, therefore, been agreed upon and will be immediately laid before the senate. The completion of the preliminary survey of that Alaskan boundary which follows the coa- tour of the coast from the southernmost point of Prince of Wales island until it strikes the lilst meridian at or near the summit of Movant St. Elias awaits further necessary appropria- tion, which is urgently recommended. This survey was undertaken under provisions of the convention entered into by this country and Great Britain July 22, 1892. and the supple- mentary convention of February 3, 1804 As to the remaining section of the Alaskan boundary, which follows the Mist meridian northwardly from Mount St. Elias to the frozen ocean the settlement of which involves the physical location of the meridian mentioned, no conventional agreement has yet been made. I call attention to the unsatisfactory deline- ation of the respective jurisdictions of the United States and the Dominion of Canada in the great lakes at the approaches tothe narrow waters thatconnect them The waters in question are frequented by fishermen of both nationalities and their nets are there used. Owing to the uncertainty and ignorance gs to the true boundary.veratious disputesand injurious seizures of boats and nets by Cana- dian cruisers often occur, while any positive Settlement thereof by an accepted standard is not easy to be reached. It being apparent that the boundary dispute between Great Britain and the republic of Venezuela, concerning the limits of British Guiana was approaching an acute stage, a definite statement of the interest and policy of the United States as regards the controversy seemed to be required, both on its own ac- count and in view of its relations with the friendly powers directly concerned. In July last, therefore. a dispatch was ad- dressed to our ambassador at London for communication to the British government in which the attitude of the United States was fully and distinctly set forth The general conclusions there reached and formulated are in substance. chat the traditional and estab- lished policy of this government is firmly op Posed toa forcible increase by any European power of its territorial possessions on this continent: that this policy is as well founded in principle as it is strongly supported by nu- merous precedents: that as a con~equence the UnitedStates is bound to prote<t against the en- largement of the area of British Guiana in dero- gation of the rights against the will of Venezuela: that. cons the disparity in of Grew i 2 aad Venezuela at ai-pirs oun reasonably settie | o dy tial arbitration and th. a them can be trieudly and impar- he resort to such ar- bitration should include the whole controversy and is not satisfied if one of the powers con- cerned is permitted to draw an arbitrary line through the territory in debate and to declare that it will submit to arbitration only the por- tion lying on one side of it. In view of these con- clusions the dispatch in question called upon the British government for a definite answer to the question whether it would or would not submit the territorial controver: between itself and Venezuela in its entirety tial arbitration. The answer of the British government has not yet been received, but is expected shortly, when further communication on the subject will probably be made to the congress. Early in January last an uprising gainst o impar- | orderto provide and prepare for such re- demption the secretary of the treasury w authorized not only to use any surplus reve- nues of the goverument, but to iss bonds of the United States and dispose of them for coin. and to use the proceeds for the purposes contemplated by the statute In May. 1878, and before the date thus appoint- ; ed for the redemption and retirement of these | notes, another statue was passed forbidding their further cancellation and retirement Some of them had, however, been previously redeemed and canceled upoa the issue of addi- tional national bank circulation, as permpitted by the law of 1875, so that the amount out- Standing at the time of the passage of the act forbidding their further retirement was 985,- the government of Hawail was prompt ar: 681,016. The law of 1878 did not stop at dis- Pressed. Martial law was forthwith Pro | tinct prohibitioa, but contained, in addition, claimed and numerous arrests were made o te provision “And = when Persons suspected of being in sympathy with | oo. or cai mae ibe aredberned sor me royalist party. oe these were sev se be received the treasury, under any citi a of the United $ tates, who were eit! — law from any souree whateve and convicted by @ military court f2\) shalt belong to the United States, they shall Rcten Sinetron oe ere Ae | not be retired, canceled, or destroyed, but sey et 1 e = as Ssu F de out again and kept while denying protection to as had ed aot eee eae taken the Hawajian oath 0: iance, insisted that martial law, though altering the forms of justice could not supercede justice self and demanded a stay of exe il the proceedings had been subr d to this government and knowledge obtained there- from that our citizens had received fair trial The death sentences were subsequently com- muted or were remitted on condition of leaving the islands. Japan has furnished abundant evidence of her vast gain in every trait and characteristic that constitutes anation’s greatness. Wehave reason for congratulation in the fact that the government of the United States, by the ex- change of treaty stipulations with the new Japan, was the first to recognize her wonderful advancement and to extend to her the cons: eration and confidence due to her national lightenment and progressive character. 1 tion in some respe e preceding revolt, which continued from 1868 to 1878, now exists ina large part of the eastern interior of the island, menac ulations on the coast. Beside de exchanges of the island, of which our country takes the predominant share, this flagrant con- dition of hostilities by arousing sentimental sympathy and inciting adventurous support among our people, has entailed earnest effort on the part of this government to enforce obe- dience to our neutrality laws and to prevent the territory of the United States from being abused as a vantage ground from w! to aid those in arms against Spanish sovereignity. Whatever may be the traditional sympathy of our countrymen as individuals with people who seem to be struggling for larger autonomy and greater freedom, deepened as such sympa- thy naturally must be in behalf of our neigh- bor, yet the plain duty of their government is to observe in good faith the recognized obli- gations of international relationship. The performance of this duty should not be made more difficult by a disregard on the part of our citizens of the obligations growing out of their allegiance to their country, which should re- strain them from violating, as individuals, the neutrality which the nation of which they are members is bound to observe in its relations to friendly sovereign states. Though neither the warmth of our people's sympathy with the Cuban insurgents, nor our loss and material damage consequent upon the futile endeavors thus far made to restore p and orde: norany shock our humane sensibilies m have received from the cruelties which appear to especially characterize this sanguinary and flercely conducted war, have in the least shak- en the determination of the government to honestly fulfillevery international obligation, yet, it is earnestly hoped, on all grounds, that the devastation of armed conflict may speedily be stayed and order and quiet restored to the distracted island, bringing in their train the activity and thrift of peaceful pursuits. Vigorous protests against excessive fines im- posed on our ships and merchants by the ships, officers of these islands for trivial errors have resulted inthe remission of such fines in in- stances the equity of the complaint was appar- ent, though the vexatious practice has not n the last n. This was the condition of af- fairs on the Ist day of January, 1879, which had been fixed upon four years before as the date for entering upon the redemption and retire- ment of all these notes, and for which such abundant means had been provided. The gov- ernment was put in the anomalous situation of i to the holders of these notes debts pay- able in gold on demand, which could neither be ons due the government, nor canceled by actual payment in g It was forced to redeem without redemption and to pay without has been issued and sold $95,509,000 of the bonds authorized by the resumption act of 1875, the proceeds of which, together with the r treasury. created a gold fund deemed sufficient to meet the demands which might be made upon it for the redemp- tion of the outstanding United States notes. This fund, together with such other gold as might be from time to time in the treasury available for the same purpose, has been since called our gold reserve and $100,00).000 has been regarded as an adequate amount to ac- complish its object. This fund amounted on the Ist day of January, 18 to 8114,190,136 and though thereafter constantly fluctuating. it did not fall below that sum in July, 1892. In Anril, 1893, for the first time since its estav- hment, this reserve amounted to less than #100,000,000, containing at that date only %97,- 011,330. In the meantime and in July, 18, an act had been passed directing large govern- mental monthly purchases of silver than had been required under previous laws and provid- ing that in payment for silver treasury notes of the United States should be issued payable on demand in gold or silver coin at the discre- tion of the secretary of the treasurv, it was, however, declared in the act to be the estab- lished policy of the United States to maintain the two metals on a parity with each other upon the present legal ratio, or such ratio as may be provided by law. In view of this declaration it was not deemed permissible for the secretary of the treasury to exercise the discretion in terms conferred on him by refusing to pay gold on these notes when demanded, because by such discrimina- tion in favor of the gold dollar. the so-called parity of the two metals would be destroyed and grave and dangerous consequences would be precipitated by affirming or accentuating the constantly widening disparity between their actual value under the existing ratio. These obligations are the instruments which ever since we have had a gold reserve, have been used to deplete it This reserve, as has been stated, had fallen in April, 1893, to $97,011,33) It has from that time to the present, with very few and im- portant movements, steadily decreased, except as it has been temporarily replenished by the sale of bonds) Among the causes for this con- stant and uniform shrinkage in this fund may be mentioned the falling off of exports under the operation of the tariff law until recently in force, which crippled our exchange of com- modities with foreign nations and necessitated to Some extent the payment of our balances in gold the unnatural infusion of silver into our been wholly discontinued. currency and the increase in agitation Occurrences in Turkey have continued |for its free and unlimited coinage to excite concern. The reported massa- | Which have created apprehension as to our dis- eres of Christians in Armenia and the de- velopment there, and in other districts, of the spirit of fanatic hostility to Christian in- fluences naturally excited apprehension for the safety of the devoted men and women, who as dependents of the foreign missionary soci- eties inthe United States all reside in Turkey under the guarantee of law and usage andin the legitimate performance of their educa- tional and religious mission. No efforts have been spared in their behalf and their protection 1m person and property has been earnestly and vigorously enforced by every means within our power. The presence of our navai vessels which are now in the vicinity of the disturbed localities affords opportunities to acquire a measure of familiarity with the condition of affairs and will enable us to take suitable steps for the protection of any interests of our countrymen within reach of our ships that might be found imperiled. The Financial Situation. As we turn from a review of our foreign re- lations to the contemplation of our national financial situation we are immediately aware that we approach a subject of domestic con- cern more important than any other that can engage our attention and one at present in such a perplexing and delicate predicament as to require prompt and wise treatment. We may well be encouraged to earnest effort in this direction when we recall the steps already taken toward improving our economic and finan- cial situation, and when we appreciate how well the way has been prepared for further progress by an aroused and intelligent popular interest in these subjects. By command of the people, @ customs revenue systém, designed for the protection and benefit of favored classes at the expense of the great majority of our country- men and which, while inefficient for the pur- pose of revenue, curtailed our trade relations and impeded our entrance to the markets of the world, has been superceded by a tar- itt policy which, in principle is based upon a denial of the right of the government to obstruct the avenues to our people's cheap living or lessen their com- fort and contentment. for the sake of accord- ing especial advantages to favorites, and which, while encouraging our intercourse and trade with other nations, recognize the fact that American self-reliance, thrift and inge- nuity can build up our country’s industries and develop its resources more surely than ener- vating paternalism. The compulsory purchase and coinage of silver by the government, un- checked and unregulated by business condi- tions and heedless of our currency needs, which for more than fifteen years diluted our circulating medium, under- mined confidence abroad in our financial ability and at last culminated in distress and panic at home has been recently stopped by the repeal of the laws which forced this reck- position or ability to continue gold payments, the consequent hoarding of gold at home and the stoppage of investments of foreign capital as well as the return of our securities already sold abroad and the high rate of foreign ex- change, which induce the shipment of our gold to be drawn against us as a matter of specula- tion. In consequence of these conditions the gold reserve on the Ist day of February, 1894, was reduced to $65,438,377, having lost more than #31.00).00 during the preceding nine months, or since April, 1893. Its replenishment being necessary and no other manner of ac- complishing it being possible, resort was had to the issue and sale of bonds pro- vided for by the resumption act of 1875. Fifty millions of these bonds were sold, yield- ing $53,633,295.71, which was added to the re- serve fund of gold thenon hand. Asa result of this operation this reserve. which had suf- fered constant and large withdrawals in the meantime, stood on the 6th day of March, 1894, atthe sum of #107,446.802. Its depletion was, however. immediately thereafter so accelerated that on the 3)th day of June, 1894, it had fallen to 264,873,025, thus losing by withdrawals more than #2,900,000 in five months and dropping slightly below this situation when the sale of 350,000,000 in bonds was effected for its redemp- tion. This depressed condition grew wors and on the 2th day of November, 1 our gold reserve was drained to. $57,060.01 It became necessary to again strengthen it. This was done by another sale of bonds amounting to $50,000,000, from which there was realized $58,538,500 with which the fund was in- creased to $111,012,021 on the 4th day of De- cember, 1894 Again disappointment awaited the anxious hope for relief There was not even a lull in the exasperating withdrawals of gold. Onthe contrary. they grew larger and more persistent than ever. Between the 4th day of December, 1894, and early in February, 1895, a period of scarcely more than two months after the second reinforcement of our gold reserve by the sale of bonds it had lost by such withdrawals more than $49,000,000, and had fallen to 841,03),181. Nearly $43,000,003 had been witdrawn within the month immediately preceding this situation. In this emergency, and in view of its sur- rounding perplexity, it became entirely appar- ent to those upon whom the struggle for safety was devolved not only that our gold reserve must, for the third time in less then thirteen months, be restored by another issue and sale of bonds, bearing a rate of interest and badly suited to their purpose, but that a plan must be adopted for their disposition promising bet- ter results than realized on the previous sales. An agreement, therefore. was made with a number of financiers and bankers whereby it was stipulated that bonds de- | scribed in the resumption act of 1875 payable in coin thirty years after their date, less scheme upon the country. The things bearing interest at the rate of 4 per bagiae per thus acccmplished, notwithstanding their | 222U @nd amounting to about $62,000,000, extreme importance and beneficent effects, | Should be exchanged for gold, receivable by fell far short of curing the monetary evils from which we suffer as a result of long indulgence in ill advised financial expedients. The cur- rency denominated United States notes and commonly known as greenbacks was issued in large volume during the late civil war and in- tended originally to meet the emergencies of that period. It willbe seen by areference to the debates in congress at the time laws were passed au- thorizing the issue of these notes that th advocates declared they were intended for oniy temporary use andto meet the emergency of | In almost. if not all. the laws relating to / them some provision was made contemplating | sory retirement A/ large quantity of them. however, were kept on | war. their voluntary or comp foot and mingled with the currency of the} country. so that atthe close of the year 1874) Immediately | -alaw was passed providing for the resumption of specie payment. by which the secretary of the treas- additional national banks to retire United States notes equal in amount! 08 per cent. of such additional national | zens Des This law forther pro. | SUL _Ithas paid in gold about one;half of its they amounted to $33! 973. after that date and in January. t ury was required. whenever circulation was issued to bank circulation until duced to $390,000.00. vided that oa and after the first day of Janu- ary, 1879, the United Stites notes then out Standing should be redeemed im coin, and in weight, amounting to a little more than #5,- 000,000. Its good results could not be perma- nent. Recent withdrawals have reduced the reserve from #107,571,230 on the 6th day of July, 1895, to $79,338,956. On the 28th of January. 1893, it was reported by the secretary of the treasury that more than €172.000.000 of the gold had been with- | drawn for hoarding or shipment during the | Fear preceding. He now reports that from | January 1, 1879, to July 14, 1899. a period of | more than eleven years, only a little over 825,- 000,000 was withdrawn. and that between July 14, 1999, the date of the passage of the law for | am increased purchase of silver. and the Ist day of December, 1895, or within less than five anda half years, there was withdrawn nearly | $375,000.00, making a total of more than 8403,- 900,000 drawn from the treasury goid since January 1,1879,the nate fixed in 1873 forthe retirement of the United States notes. Nearly $327,90),000 of the gold thus withdrawn has been paid out on these United States notes, and yet every one of the 816,000,009 is still un- canceled and ready to do service in future gold depletions. In other words, the govern- s paid in gold more than nine-tenths ited States notes and still owes them of its T notes given for silver purchases without ex- tinguishing by such payment $1 of these notes. And added to all this we are reminded that to carry out this astounding financial system the ed by receiving such notes in discharge of | | | | ded inde’ government has incurred a b ness of $95,509.00) in estab! and of 81 15,409 in efforts Tam convinced the o: ticable remedy for our t retirement and cancell States notes, commonly the outstanding treasury ote government in payn under the act of 1890. a gold reserré to pro might be supplied by s used on their retirement or the circulation of 0 ional banks. the aggregate capital of these now in existe amounts to more than #666,KN.(0, their standing circulatio: ased on bond sec amounts to only about $190,000 00) Ithink they ought to be a culation equal to the par va they deposit to secu theircirculation s! cent. which we expenses the cove count. Ido n cellation of the tr the silver pu ng the treasury in the a cient sil includ nearly 000,000 in worthy of considera not, from time to time, be converted into dol- lars or fractional coin and slowly put into culation. Inthe present stage of o} ty it is not easy to understand how the amount of our revenue receipts directly af The im- portant questi received in rev money we = in sound fin on is not the nue paym in and our conditions. uantity of money s. but the kind of to continue We are consid- ering the ment holding of gold as re- lated to the so ness of our money and a: fecting our national credit and monetary strength. If our gold reserve had never been impaired: if no bonds had deen issued to re- plenish: if there had been no fear and timidity concerning our ability to continue gold payment if part of our Tevenues were now paid in gold: and if we could look to our gold receipts as a means of maintaining a safe reserve, the amount of our revenues would be an influen- tial factor inthe problem. But unfortunately all the circumstances that might lend weight to this consideration are en y lacking. In our present predicament no gold is received by the government in payment of revenue charges, nor would there be if the revenues were in- creased. The receipts of the treasury when not in silver certitic: consist of United States notes and treasury notes, issued for sil- ver purchases. These forms of m are only useful to the government in paying its cu rent ordinary expenses and its quan in government possession does not in the least contribute toward giving us the kind of safe financial standing or condition which is built on goldalone. Ifit is said that these notes if held by the government can be used to obtain gold for our reserve, the answer is easy. The people draw gold from the treas- ury on demand upon United States notes, but the proposition that the treasury can on de- mand draw gold from the people upon them would be regarded in these days with wonder and amusement. Andeven if this could be any done, there is nothing to prevent those thus parting with their gold from regaining it b, the next day or the next hour by the presenta- tion of the notes theyreceived.in exchange for it The secretary of the treasury might usg such notes taken from a surplus revenue to buy gold inthe market. Of course he could not do this without paying a premium. Private hold- ers of gold, unlike the government, ing no parity to maintain, would not be restrained from making the best bargain possible when they furnished gold to the treasury: but the moment the secretary of the treasury bought gold on any terms above par he would estab- lish a general and universal premium upon it. thus breaking down the parity between gold and silver which the government is pledged to maintain, and opening the way to new and serious complications In the meantime the premium would not re- main stationary and the absurd spectacle right be presented of an alien selling gold to the government. and with United States notes in his hands immediately clamoring for its re- turn and resale at a higher premium. It may be claimed that a large revenue and re- duced receipts might favorably affect the situ- ation under discussion by affording an oppor- tunity affecting these notes in the treastify when received, and thus preventing thélr pre- sentation for gold Such retention of the metal ought to be at least measurably permanent, and this is pre- cisely what is prohibited so far as United States notes are concerned. By the law of 1878, forbidding their future retirement, that statute in so many words provides that these notes when received into the treasury and belonging to the United States shall be “paid out again and kept in circulation."’ It will moreover be readily seen that the government could not refuse to pay out United States notes and treasury notes in current transactions when demanded and in- sist on paying out silver alone and still maintain the parity between that metal and the currency representing gold. Besides the accumul tion in the treasury of currency of any kind exacted from the people through tax- ation Is justiy regarded as an evil and it can- not proceed far without vigorous protest against an unjustifiable retention of money from the business of the country and a de- nunciation of a scheme of ation which proves itself to be unjust when it takes from the earnings and income of the citizen money so much in excess of the needs of government support that large sums can be gathered and keptin the treasury. Such a condition was a peril in time of surplus revenue and led the gov- ernment to restore currency to the people by the purchase of its unmatured bonds at a large premium and by a ljarge increase of its depos- iS in national banks, and we easily remember that the abuse of treasury accumulation has furnished a most persuasive argument in favor of legislation radically reducing our tariff tax- ation. Perhaps it is supposed that sufficient rev- enue receipts would in a sentimental y im- prove the situation by inspiring confidence in our solvency and allaying the fear of pecuniary exhaustion. And yet all through our struggles to maintain our gold reserve the er has been any apprehension as to o ready ability to pay our way with such money as we had and the question whether or not our current re- ceipts met our current expenses has not en- tered into the estimate of our solvency. Of course the general state of our funds e usive of gold was entirely immaterial to the foreign creditor and investor. His debt could only be paid in gold and his only concern was our abil- ity to keep on hand that kind of money. Inasmuch as the withdrawal of our gold kas resulted largely from fright. there is nothing apparent that wiil pre atinuance or recurrence, with its natural consequences, ex- cept such a change in our financial methods as will reassure the frightenc1 and make the de- sire for gold less intense. It is not clear how an increase in revenu niess it be in gold,can be satisfactory to those whose only anxiety isto gain gold from the government's store. Itcan- revenues as a cure for 0 € t troubles. d law compelling an i purchase ver by tk passed on the 14th da Is of gold from the treasury hdrawals upon States notes i continued to s of that largely that since the passage been more than thirte ed States silver pur- g the eleven r thereto, and 15:9. when spe- chases as was and half years immed after the frst d: cie payments w. Ihave const: many of my countrymen. whose do not doubt, insist that th now threatening us m: and simpi ver. The fact that pinage of sil- ts shall be at and ulimit both gold and sil- tender qua! . regard- other government and and independe: yer dollars of full jegal less of the action of any | Were two on | a ratio appreciably @ tive va y of great d than now exi were undervalued in the ratio gradually and surely disappeared from our circulation and | wer was better recognized. impoter in our recent history we have raise by legislation the an act of congress in IS78 the government wag required for more than eleven years to exten@ annually at least silver bullion for ce fort increased the amount of silver the gov ernment was compelled to purchase and foreed — itto become the ounces, or practically the entire product of our mines. ste the expre: in the congress, who led in the passage of the last mentioned act that it would re-establish — and main: two metais are still fresh in our memory. cord with the experience of other nations, © there is certainly no secure ground for the bee J ief tha an an inequatity of 50 per cent. between gold and silver least possibility that our country, which hag less than one-seventh of the silver money in the world, could by its action alone raise not only our own with gold. the free coinage of silver at a ratio differing from the actual relative value would be the signal for a complete departure of gold from — traction of our circulation medium and shrink- age in the real value and monetary efficiency of all other forms of currency as they settled to the level of silver monometailism. and uncertainty our humiliation would be ime creased progre desperately and hopelessly striving to meet. the stress of modern commerce and competi. tion witha debased and unsuitable curreney, and in association with the few weak and lage standard Violent changes in our monetary standard and ys ast is fullof lessons, teaching not th» economic dangers, but the national fi ality that follows in the train of such @: ment. Iwill not believe that the Amerigan. people can be persuaded, after sober delibers« tion, to jeopardize their nation’s prestige and proud standing b trums, nor that the lurements of cheap money, when they realize ~ far in our history has been so devotedly chere ished as one of the t Our couutry’s indebtedn. by the government or existing between Indl- viduals, hi our present s gress that these valuable do! templation and intention of the parties when © contracted, would ope! fiat of amount of prop Interests almost in vocate @ blind and headlong plunge to coinage fessing perience, lish a concurrent circulation of both metals in owe coin standpoint. the standard of the civilized world and pete mits the only bimetallism now possible or a¢ least that within the independent reach of any single nation, however powerful that nation business usage, it does not despise silver nor: is maintained there unquestioned circulation a volume of silver: currency sometimes equaling and sometimes even ata parity notwithstanding a depreciation o fluctuation in the intrinsic value of silver. ard of value and a currency for monetary u . The standard must necessarily be fixed anf certain. and country has a gold currency in circulation, bub an enlightened and wise system of finance se- cures the benefits of both gold and silver the standard stable and all other eurreney par with it. pansion of a safe and conservative *0 commercial substituted for Ifa fixed and staple standard is main such as the magnitude of safety of our mercial transactions and business require use of money itself is conveniently minim! financial work. ing dol begets gambling speculation and unde the foundations of honest enterprise. I ventured to express myself on these sul with earnestness and plainness of speech cause I cannot rid myself of the belief there lurks in the proposition for the free © age of silver so strongly approved aud so: thusiastically of my countrymen a serious menace to prosperity and an insidious temptation of People to wander from the allegiance they to public and private integrity. Ido no of those who press this scheme that I have iff perfer upon this momentous subject. frain from begging them to re-examine tl ood vie reason and f not. therefore, be safe to rely upon increased } ous financial situation already forced upon @® repre in charged with the responsibility of imaw ing measures for the safety and prosp ide our common country to promptly and effee ively consider the ills of our critical fin plight. judgment approves. I desire. however, o® sure the congress that I am prepared $0! operate with them in perfecting any. Inéasure promising thorough and practd lief and that I will gladly labor with @ every patriotic endeavor to further thei and guard the welfare of our whom have undertaken to serve. which they suggest calls for ef gold in the gold dollar ag rd and only 50 cents in int silver in the silver dojj there infinitely stronger reasons q be adduced for hoping that such re for us a bimetallic currency y. An experiment so no proposed might e that stability is nm of sound money. no human contrivance or act on has ever been able to hold the together in free coinage ag rent from that whieh: the markets of the hose who believe that our independent frog e of Silver at an artificial rato with golg to L would restore the parity between the als and consequently between the coins op. i and improbable ¢ 7 ractice of other nations ang . the wisest statesmen ang” of the world, both in the past ang. sfar more conclusive 4 r own actual experiences ier history our law makers iq: slish a bimetallic curreney we upon a ratio which age 4g from the actual relae ne Two metals not more thag both cases, notwithstanding = iculties and eost of transportation t the coins whose intrinsic worth tals established ok free cc ntally varies per cent. i to other countries where their real value Acts of congress were equality where natural slight inequality. Twice ignally fatled te alne of silver. Under to create uses decreed even a 002.000 in the purchase ig. oinage. The act of July 14, 189), in a still bolder ef. buyer annually of 54,000,000 Under both laws silver rapidly and lily declined in value. The prophecy and— d hope and expectation of those — in the former parity between the In the light of these experiences, which ag- ctof congress could now bridge t our present ratio, nor is there the — but all silver, to its lost ratie = Our attempt to accomplish this by 4 irculating, immediate and large con- In a self-invited struggle through darkness yy the consciousness that we had rted company With all the enlightened and sive nations of the world, and were tions which have silver alone as their — of value. All history warns us rash experiments which threates tinst tion of our currency. neouraging financial pose will yield to the false ale atitmust result in the weakening of that neial integrity and rectitude which thug its of true Americanism, s, whether owing as been contracted with reference to” | ndard. 'To decree by act of come bts shallbe payable in less — ss than those within the come ate to transfer, by the- law and without compensation, an ty and a volume of rights and” 4 culable. Those who in the name of bimetallism and the belief, contrary to all that we could thus est aa double standard and a] ve are Certainly reckoning from a cloudy” Our present standard of value is While the value of gold as a standard adied by almost universal commereial and ek its banishment. Wherever this standan is at its side in free and GB ceeding it in amount, both maintained There is avast difference between a st ‘The currency may be in diverse forma. «f various kinds. No silver standard: and circulating medium by keep = Such a system and such a ‘d also gives free scope for the use indispensable to broad and gi transactions and so the actual use of mo ar of fixed and stable value yht the agency of confident credit in hing capacity of multiplying itself Every unstable and fluct r fails as a basis of credit and its advocated by a multi It is bees distrust the good faith and sincerf tly but with zeal submitted my tho I cannot ‘S und beliefs in the light of pat lar experience, and to uences of such ed agita w the jon of the subject dificuities of a 4 pecially entreat the peo the congress who Tha suggested a remedy which our respective places of duty = GROVER r] _ Executive Mansion, Washington, Dec, % 1