Show PE I IENTS MESSAGE Continued from Pago 1 have been found to justify n remonstrance remon-strance and a claim for indemnlty which Hawaii has not thus fa con Ceed CJJ RECALL OF THURSTON Mr Thurston the Hawaiian minister having furnished this government abundant reason for asking that he be I recalled that course was pursued and his successor has lately been received Alien Laborers The deplorable lynching of several 1tHa laborer in Colorado was naturally natur-ally followed by international representations repre-sentations and I am happy to say that I the best efforts of the state in which the outrages occurred have been put ji h to discover and punish he authors of this fitroclous crime The dependant fjmilies of some of the unfortunate un-fortunate victims invite by their deplorable de-plorable condition gracious provision for their needs VI < Ioi S PADRONE SYSTEM TIPSP manifestations against help manifesttons less aliens may be traced through successive suc-cessive stages to the vicious padrone syXm uich unchecked by our immi in and contract labor statutes Ca Ii l these c workers from the moment mo-ment uf landing our shores and farms them out In distant and often rude legions where their sharpening compe tition In the fields of bread winning toil brings them Into collision with other labor Interests While welcoming as we should those who seek our shores to merge themselves them-selves in our body politic and win personal per-sonal competence by honest effort we cannrt regard such assemblages of disfiv lively alien laborers hired out by 5 1uh ors and shipped hither and rhuher as the prospect of gaii may dictate a < otherwise than repnant to the spirit of our civilization deterrent deter-rent to inditidual advancement and hindrance to the building up of stable communities resting upon the whole sc me ambitions of the citizens and con btitutincr the prime factor in the pros pi rity and progress of our nation I legislation leg-islation can reach this growing evil i I ccrtainlj should be attempted I Greatness of Jniiaii Japan has furnished abundant evl donc L > f her vast gain in every trait and characteristic that constitutes a nations greatness We have reason for the congratulations in the fact that e go > rnment of the United States bj he exchange of liberal treaty stipulations stip-ulations with the new Japan was the lirst to recognize her wonderful ad vate > and to extend to her the consideration dt J el orn eration and confidence due to her l na tknal enlightenment and progressive charaotei uiiutviiiiiiniiMcicaii IJotimlnrj Dispute Dis-pute The boundary dispute which lately threatened to embroil Mexico and Guatemala Guat-emala has happily yielded to pacific counsels and its determination ha by jiint agreement of the parties been submitted to the sole arbitration of the Vn ted States minister to Mexico fjixifau Jt i n ml no Monuments The commission appointed under the con L nttln of Feb IS 18S9 to set new monuments along the boundary between be-tween the United States and Mexico has eorrrleted its task Noprro Cnlonlritiou in oAs o-As a sequent of the failure of a scheme for the colonization in Mexico of negroes ne-groes mustly emigrants from Alabama under contract a great number of these helpless and suffering people starving and smitten with contagious disease made their way or Vere as sictd to the lontier were in a wretch el plight tney were quarantined by the Texas authorities Learning of th ir destitute condition I directed rations furnished them ins to be temporarily furished firjugh the war department At the expiration of their quarantine they were conveyed by the railway company at SJjwparativtly omln rates to their li Sf in Alabama upon the asur are in the absence of any fund avail of their transporta able for the cost tion that I would recommend to congress con-gress an appropriation for its payment I now strongly urpe upon congress th2 rrpneij of making such an appropria tll I should be remembered that the measures taken were dictated not only bif sympathy and humanity but by a c nit n that i ws > s nbt compatible t1 Ith the dignity of this government that so large a body of our dependent citizens should be thrown for relief upon up-on the charity of a neighboring state Mosquito Indian Strip In last years message I narrated atom at-om length the jurisdictional questions ques-tions then freshly arisen i the Mosquito Mos-quito Indian strip of Nicaragua INCORPORATED WITH NICAR 4i AGUA Siwe that time by the voluntary act of t Mosquito nation the territory CSr ed 10 them has been incorporated with Nicaragua the Indians formally eubjeuting themselves to be governed by e general laws and regulations oft of-t fpublic instead o by their own cu ass and regulations and thus c nvayj > ng themselves of a privilege se curt JS them by the treaty between NicarajciJa and Great Britain of Ja tsar 28 3S60 THE BRITISH VICE CONSULS CASE After this extension of uniform 7 < icaraguan administration to the Mosquito Mos-quito strip the case of the Britteh quio several of v econsul Hatch and of his countrymen who had been sum snanly expelled from Nicaragua and treated with considerable indignity provoked a cam by Great Britain upon Nicaragua for pecuniary indem nty which upon Nicaraguas refusal to admit liability was enforced by Great Britain The formers arbltrtiry conduct in regard to British subjects furnished the ground for this proceeding > inp OCCUPATION OF CORINTO A British naval force occupied with out resistance the Pacific seaport of Cortoto but was soon after withdrawn the promise that the sum demanded upon tle prmf ta te manded would be paid Throughout this incident the kindly offices ot the United States were invoIced In-voIced and e employed in favor of astijtfaeerul C settlement and as much con de iitlon and indulgence toward Nicaragua as er consistent with the jiatune of the case These efforts have since beoa made the subject of ppr iatle and grateful recognition by kriatnt Ic Corontttion of the Czar The coronation of tao czar of Russia at toscow in May next invites the ceremonial participation of the United Sttites and in accordance with usage oi1 diplomatic propriety our minister to the Imperial court has been directed t represent our government on this occasion PRACTICE OF KUSSfAN CONSULS Oorresponidenoe ii on jtat touching Op eno the practice < > f Russiaa consuls within th lred1ct < of the United States to tirt I TTOKi te citizens as t their red J re-d rsllgbaus faith and upon oseertaln rlgls tntyn < thereof t deny to Jews anthem f I of r sspbrts r legal deco ffocusi in jauseiav o Inasmuch a f v l > V 9 I such a proceeding Imposes n disability i which in the case of succession to i I I property in Russia may be found to infringe the treaty rights of our citizens zens and which is an obnoxious invasion inva-sion of our territorial jurisdiction it ha elicited fitting remonstrance the result of which it is hoped will remove move the cause of complaint VESSELS SEIZED IN RUSSIAN WATERS The pending claims of sealing vessels ves-sels of the United States seized in Russian Rus-sian waiters remain unadjusted Our recent convention with Russia establishing estab-lishing a modus vivcndi as to imperial jurisdiction in such cases has prevented further difficulty of this nature The Russian government has welcomed in principle our suggestion for a modus mous Vivendi Co embrace Great Britain and Japan looking no the better preservation preserva-tion of seal life in the North Pacific I and Bering sea and the extension of the protected area defined by the Paris tribunal to all Pacific waters north of the thirtyfifith parallel PROHIBITION OF USE OF FIRE I IS I is especially noticeable that Russia favors prohibition of the use of firearms fire-arms in seal hunting throughout the propose area and a longer closed season sea-son for pelagic sealing I I Krecnient Regarding Samoa In my last two annual messages I I called the attention of the Congress to the position we occupied as one of the I parties to a ocpe agreement by which we became jointly bound with England and Germany to so I Interfere with the government I and control of Samoa as in effect to assume the management of I its affairs I OUR POSITION INCONSISTENT II On the 9th day of May 1894 I transmitted trans-mitted to the Senate a special message mes-sage with accompanying documents I giving information on the subject and emphasizing the opinion I have at all I times entertained that our situation in this matter was inconsistent with I the mission and traditions of our government i gov-ernment in violation of the principles I we profess and in all its phases mis I chevious and vexatious I again press I this subject upon the attention of the Congress and ask for such legislative i action or expression as will lead the si Sdb way to our relief from obligations both irksome and unnatural I CUBAN REBELLION I The Miami Griiicly DIstarhcil Cuba is again gravely disturbed A I insurrection in one respect more active ac-tive than the last preceding revolt I which continued from iSiS to 1S7S now I exists in a large part of the eastern in 1 terior of the island menacing even I some populations on the coast Besides Be-sides deranging the commercial exchanges ex-changes of the land of which our 1 country takes the predominant share this flagrant condition of hostilities by I arousing sentimental sympathy and inciting I in-citing adventurous support among our i i people has entailed earnest effort on the part of this government to enforce obedience to our neutrality laws ondi to prevent the territory of United States from being used as a vantage ground from which to aid those arms against Spanish sovereignity DUTY OF THE UNITED STATES Whatever may be the traditional sympathy of our countrymen as individuals r rr retr mir dividuals fh a people who ns m to be struggling for larger autonomy and greater freedom a such sympathy naturally must be in behalf of our neighbors yet the plain duty of their government is to observe In good faith thE recognized obligations of international I interna-tional relatjonship The performance of this duty should not be made more difficult by a disregard on the part of our citizens of the obligations growing grow-ing out of their allegiance to their country which should restrain them I from violating as individuals the neu i trality which the nation of which they are members is bound to observe in its I relations to friendly sovereign states j I INTERNATIONAL OBLIGATIONS WILL BE FULFILLED I Though neither the warmth of our peoples sympathy with the Cuban insurgents in-surgents nor our loss and material damage consequent upon the futile endeavors I en-deavors thus far made to restore peace i and order anv shock our humane p < n sibilitics may have received from the cruelties which appear to especially I characterize this sanguinary and fiercely conducted war have in the least shaken the determination of the government to honestly fulfill every I international obligation yet I is to be earnestly hoped on every ground that the devastation of armed conflict dCvastnton confct may speedily be stayed and order and quiet i St i u i te istrartPd island bringing bring-ing in their train the activity and thrift of peaceful pursuits I THE ALLIANCE INCIDENT One notable instance of interference iilIn by si i th A a has occured On March S last the Ali Al-i lianbe while bound from Colon to New j York and following the customary I track for vessels near the Cuban shore but outside the three mile limit was fle upon by a Spanish gunboat Protest Pro-test was promptly made by the United States against this act a not being justified by a state of war nor permissible per-missible In respect of vessels on the usual paths of commerce nor toleraible i in view of the wanton peril occasioned to innocent life and property The act I was disavowed with full expression of regret and assurance of nonrecur I rence of such just cause of complaint while the offending officer was relieved 1 of his command j ARRESTS OF AMERICAN CITIZENS I Military arrests of citizens of the United States in Cuba have Unied Stte o j casioned frequent reclamations Where held on criminal charges their delivery to the ordinary civil I delver civ1 jurisdiction ju-risdiction for trial has been demanded and obtained in conformity with treaty I provisions and r merely detained by way of military precaution under a jl proclaimed state of siege without formulated for-mulated accusation their release or t trial has been insisted upon RIGHTS OF I RICA CONSUL The right of American consular officers offi-cers in the island to prefer protests and demands in such cases having been questioned by the authorities their enjoyments en-joyments of the privilege stipulated by treaty for the consuls of Germany was claimed under the most favored nation na-tion provision of our own convention and was promptly recognized Tlic Morn Claim The long standing demand of Antonio Anto-nio Maximo Mora against Spain has atlas at-las been settled by the payment on the 14th of September last of the sum originally agreed upon In liquidation of the claim Its distjffbution amcag the parties entitled to receive it has proceeded as rapidly as the rights of those claiming the fund could be safely safe-ly determined Enforcement of Differential Duties The enforcement of differential duties against products of this country exported ex-ported to Cuba and Puerto Rico prompted the immediate claim on our part to the benefit of the minimum tariff tar-iff of Spain in return for the most favorable fav-orable treatment permitted by ji niws as regards the procJucttm of Spanish territories A commercial arrangement was conclude in January last securing the treatment so claimed EXCESSIVE FINES ON AMERTCAN SHIPS Vigorous protests against excessive fines imposed on our ships and merchandise mer-chandise by the customs officers of these islands for trivial errors have resulted in te remission of such fines in instances where the equity of the h i complaint was apparent though the vexatious practice has not been wholly discontinued OCCURKENOES IN TURKEY They Continue o Excite Concern Occurrences In Turkey have continued contin-ued to excite concern The reported massacres of Christians in Armenia and the development there and in other districts of fanatical hostility to Christian Chris-tian influences naturally excited apprehension ap-prehension for the safety of devoted men and women who as dependents of the foreign missionary societies in the United States reside in Turkey under un-der the guarantee of law and usage and in the legitimate performance of their educational and religious missions mis-sions No efforts have been spared In their behalf and their protection In person and property has been earnestly earnest-ly and vigorously enforced by every means within our power LACK OF INFORMATION I regret however that an attempt on our part to obtain better information informa-tion concerning the true condition of affairs in the disturbed quarters of the Ottoman empire by sending thither the United States consul at Sivas to make investigation and report was thwarted by the objections of the Turkish government gov-ernment NOT A GRATUITOUS ENTANGLEMENT ENTANGLE-MENT This movement on our part was in no sense meant as a gratuitous entanglement of the United States in the socalled Eastern question nor as an officious interference with the right and duty which belong by treaty to certain great European powers call ing for their Intervention in political matters affecting the good government and religious freedom of the nonMus salman subjects of the Sultan but It have an arose solely from our desire to arose accurate knowledge of ihe conditions in our efforts to care for those entitled to our protection OUR NAVAL VESSELS The presence of our naval vessels of the which are now in the vicinity disturbed localities affords opportunities distred localtes ties to acquire a measure of familiarity with the condition of affairs and will for enable us to take suitable steps the protection of any interests of our countrymen within the reach of our ships that might be found imperiled AMERICAN COLLEGE EXEMPTED FROM TAXATION The Ottoman government has lately issued an imperial iraae exempting forever from taxation a American college for girls at Scutari Repeated assurances have also been obtained by assuTance at Constantinople that simi our envoy It Constantnple lar institutions maintained and administered admin-istered by our countrymen shall be secured se-cured in the enjoyment of all rights the citizens throughout and that our citzens empire shall be protected DONT RELY ON All URANCES ONLY however in view The government of existing facts is far from relying upon existng assurances as the limit o its been vigilant duty Our minister has vigiant utJ alert In affording all possible protection individual cases where dan tection in threatened or safety was imper I ger far towards sent ships as illed We have ied thl disturbance wards the points of actual as it is possible for them to go where they offer refuge to those obliged to tey ofer reuge of other I flee and we have the promise fee Which have ships in the neigh ers powers pm well as citizens a borhood that our citzens asjvell theirs will be received and protected on board those ships AMERICAN REFUGEES minister orders of our On the demand 01 been issued by the sultan ders have beCn and shall guard that Turkish soldiers shal gard to the coast American refugees escort been carried out These orders bave cred gives assurance and our latest intelligence personal safety the present of surance and missionaries citizen of Thouch our < thus far no lives of American been sacrificed there can have sacrifced citizens be no doubt that serious loss and destruction mission property have resulted struction of strcton and out riotious conflicts suited from riotous contlcts ragout attacks GENT OF THE CHRISTIAN WORLD By treaty several of the most power have secured aright ful European powers I right and have assumed a duty not I only in behalf of their own citizens and in furtherance of their own Interests In-terests but as agents of the Christian world Their right is to enforce such conduct of the Turkish government as will restrain fanatical brutality and rstra if this fails their duty is to so interfere inter-fere as to insure against such dreadful occurrences in Turkey as have lately shocked civilization The powers declare de-clare this right and this duty to be theirs alone and it is earnestly hoped that prompt and effective action on their part will not be delayed NEW CONSULATES The new consulates at Erzeroum and Eatdelat and Harpool for which appropriation was made the last session ses-sion have been provisionally filled by trusted employees of the department though of state These appointees now in Turkey have not yet received their exequaturs Venezuelan Slenm Transportation Company The arbitration of the claim of the Venezuela Steam Transportation company com-pany under the treaty of January 19 1S92 between the United States and Venezuela resulted in an award in favor of the claimant France nail Venezuela The government has used its good offices of-fices toward composing the differences between Venezuela on the one hand I and France and Belgium on the other I growing out of the dismissal of the I representatives of those powers on the ground of a publication deemed offensive I of-fensive to Venezuela Although that I dismissal was coupled with a cordial i request that other more personally I agreeable envoys be sent in their stead I a rupture of intercourse ensued and still continues Our Consular Service In view of the growth of our interests inter-ests in foreign countries and the encouraging en-couraging prospects for a general expansion ex-pansion of our commerce the question of an Improvement in the consular service ser-vice has Increased in importance and urgency Though there is no doubt that the great body of consular officers of-ficers are rendering valuable services to the trade and industries of the country the needs of some plan of appointment and control which would tend to secure a higher average of ef feciency cannot be denied The importance Im-portance of the subject has led the executive to consider what steps might properly be taken without additional legislation to answer the need of 0 better bet-ter system of consular appointments NEED OF BETTER APPOINTMENT SYSTEM The matter having been committed com-mitted to the consideration of the secretary of state in pursuance of his recommendations an executive order was Issued on the 20th of September 1895 by the terms of which it is provided that after that date any vacancy in a consulate or commercial agency with an annual salary or compensation from official fees of not more than 2500 or loss than 1000 should be filled either by transfer or promotion from some other position under the department of state of a character tending to qualify the Incumbent for the position to be filled or by the appointment of a person per-son not under the department of state but having previously seed there under and < having Sown his capacity and fitness for consular duty or by the appointment or a person who having hav-ing been selected by the President and ct sent to a board for examination is found upon such examination to be qualified for the position Posts which pay less than 1000 being usually on account of their small compensation filled by selection from residents of the locality it was not deemed practicable to put them under the new system The compensation of 2500 was adopted a a maximum limit In the classification for the reason that cons con-s ar officers receiving more than th tae t-ae often charged with functions and duties scarcely inferior in dignity and I importance t those of diplomatic J agents and it was therefore thought bet to continue their selection In the discretion of the executive without subjecting them to an examination before be-fore a board POSITIONS INCLUDED IN THE ORDER j Excluding seventyone places with compensation at present less than 1000 and fiftythree places above the maximum in compensation the number num-ber of positions remaining within the scope of the order is 196 The number will undoubtedly be increased by the Inclusion of consular officers whose remuneration muneration in fees now less than 1000 will be augmented with the growth of our foreign commerce and a return to more favorable business conditions THE BOARD OF EXAMINATION I In the execution of the executive order or-der referred to the secretary of state I has designated as a board to conduct the prescribed exaiminations the third assistant secretary of state the solicitor so-licitor i of the department of stalte the i l fu ro f chief of the consular bureau and has specified the subjects to which such examinations I ex-aminations shall relate I Is not assumed I as-sumed that this system will prove a I full measure of consular reform i is quite probable that actual experience will show particulars in which way the order already issued may be amended i and demonstrate that fo the best results I re-sults appropriate legislation by Congress I Con-gress is imperatively required In any I event these efforts to improve the consular con-sular service ought to be supplemented by legislation providing for consular inspection This has frequently been a subject o executive recommendation and I again urge such action by Congress Con-gress as will permit the frequent and thorough inspection of consulates by I officers appointed for that purpose or I by persons already In the diplomatic or consular service The expense attending at-tending such a plan would be insignificant Insig-nificant compared with Its usefulness and I hope the legislation necessary to set it on foot will be speedily forthcoming I TO PROVIDE OFFICIAL RESIDENCES I DENCES I I am thoroughly convinced that in I I addition to their salaries our embassa I dos and ministers at foreign courts I should be provided by the government with official residences The salaries I of these officers are comparatively I small and in most cases Insufficient to pay with other necessary expenses the I cost of maintaining household establishments estab-lishments in keeping with their important im-portant and delicate functions The usefulness of ai nations diplomatic representative undeniably depends much upon the appropriateness of his surroundings and a country like ours while avoiding unnecessary glitter and show should be certain that it does not suffer in is relations with foreign nations through parsimony and shabbiness shab-biness in its diplomatic outfit These considers Wans and the other advantages of Waiving fixed and somewhat some-what permanent locations fo embassies embas-sies would abundantly justify the moderate expenditure necessary to carry out this suggestion FINANCIAL SITUATION A Subject More1 Important Than Any Other J As we turn from a review of our fog fo-g relations to the contemplation of OUT national financial situation we are immediately aware tat 1 we approach ap-proach a subject of domestic concern more Important than any other that can engage our attention and one at present in such a perplexing and deli ate predicament as to require prompt and wise treatment We may be well encouraged to an earnest effort in this direction when we recall the steps already I al-ready taken toward improving our economic and financial 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 MKINLEYISM SUPERCEDED By commands of the people a customs cus-toms revenue system designed for the protection and benefit of favored classes at the expense of the great mass of our countrymen and which while inefficient for the purpose of revenue rev-enue curtailed our trade relations and I impeded our entrance to the markets of the word a been superceded by a tariff policy which iii principle is based upon a denial of the rights of the government to obstruct the avenues ave-nues to our peoples cheap living or lessen their comfort and contentment fo the sake of according especial advantages ad-vantages to favorites and which while encouraging our intercourse and trade with other nations recognizes the fact that American selfreliance thrift and I t mercn seI ingenuity can build up our countrys inHustries and develop its resources I more surely than enervating paternalism paternal-ism COMPULSORY PURCHASE AND COINAGE OF SILVER i The compulsory purchase and coinage coin-age of silver by the government unchecked i un-checked e unregulated I by business conditions and heedless of our currency cont cur-rency needs which for more than fifteen years diluted our circulating medium undermined confidence abroiad 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 reckless scheme Upon the country The things thus accomplished notwithstanding not-withstanding their extreme Importance and beneficent effect fall far short of curing the monetary evils from which we suffer a a result of long Indulgence Indul-gence in illadvisad financial expedients expe-dients UNITED STATES NOTES The currency denominated United States notes and so only known as SL ts a greenbacks was issued in large volumes vol-umes during the late civil war and was intended originally to meet the exigencies of that period I will be seen by a reference to the debates in Congress at the rime the laws were passed authorizing the issue of these notes that their advocates declared they were intended for only temporary use and to meet the emergency of war In almost if not all the laws relating t tem some provision was made contemplating con-templating their voluntary or compulsory compul-sory retirement A large quantity of sor Ithem however was kept wi foot arid mingled with the currency of the country coun-try so that a the close of the year 1874 they amounted to 381999073 Immediately Im-mediately after that date and in January Jan-uary 1875 a law was passed providing I for the resumption of specie payments by which the secretary of the treasury was required whenever additional circulation cir-culation was issued to national banks to retire United States notes equal in amount to SO per cent of such additional addition-al national bank circulation until such notes were reduced to 5300100000 This law further provided that on and after the 1st day of January 1879 the United States notes then outstanding should be redeemed in coin and in order to provide and prepare fo such redemption redemp-tion the sect of he treasury was authorized not only to use any surplus sur-plus revenues of the government but to issue bonds of the United States and dispose of them for coin and to use the proceed fo the purposes contemplated con-templated by the statute In May 1 4 i 1873 and before the date thus appointed appoint-ed for the redemption and retirement of these notes another statute wasp was-p d forbidding their further can callatioTi and retirement Some o them had however been previously redeemed re-deemed and cancelled upon the issue of aditicmal national bank circulation as permitted by the law of 1875 so that the amount outstanding at the time of the passage of the act forbidding forbid-ding their further retirement was J316 651016 68016 68016TE LAW OF 1S7S The law of 1878 did not stop at distinct dis-tinct prohibition but contained in addition ad-dition the following express provision And when any of said notes may be redeemed or be received into the treasury treas-ury under any law from any source whatever and shall belong to the United States they shall not be retired re-tired cancelled or destroyed but they shall be issued and paid out again and kept In circulation This was the condition con-dition of affairs on the 1st day of January Jan-uary 1879 which had been fixed upon four years before a the date fo entering enter-ing upon the redemption and retirement retire-ment of all these notes and for which such abundant means had been provided vide The government was put in the situation of owing to the holders of its notes debts payable in sold on demand which could neither be retired re-tired by receiving such notes in discharge dis-charge of obligations due the government govern-ment nor cancelled by actual payment in gold I was forced to redeem with out redemption and to pay without acquittance CREATION OF THE GOLD FUND I There had been issued and sold 95 500000 of the bands authorized by the resumption act of 1875 the proceeds of which together with other gold in the treasury created a gold fund deemed sufficient to meet the demands which might be made upon it for the redemption 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 100000000 has been since regarded as an adequate amount to accomplish its object This fund amounted on the 1st day of January Jan-uary 1879 to 1111193360 and though thereafter constantly fluctuating i did not fall below that sum until July 1S92 In April 1893 fo the first time since its establishment this reserve amounted I amount-ed to less than 100000000 containing ait that date only 97011330 THE SHERMAN LAW In the meantime and in July 1890 an act had been passed directing larger monthly purchases of silver than had bfeen required under previous laws and providing that In payment for such silver treasury notes of the United States Should be issued payable on demand in gold or silver coin at the discretion of the discreton secretary sec-retary of the treasury I was however declared In the act to be I I the established policy of the United I States to maintain the two metals on a parity with each other upon the I present legal ratio or such ratio as may be provided by law I DISCRETION OF THE SECRETARY OF THE TREASURY In view of this declaration It was not deemed rmrmlssable for the secretary of the treasury to exercise the discre ton In terms conferred on him by re fusing to pay gold on these notes when demanded because by such discrim ination in favor of the gold dollar the socalled parity of the two metals would be destroyed and grave and dangerous dan-gerous consequences would be precipitated precipi-tated by affirming or accentuating the constantly widening disparity between I their actual values under the existing ratio TREATED AS GOLD OBLIGATIONS I thus resulted that treasury notes issued in payment of silver purchases under the law of 1890 were necessarily treated as gold obligations at the op tion of the holder These notes on the I Igt day of November 1893 when the law compelling the monthly purchase of silver was repealed amounted to more than 155000000 The notes of this description now outstanding added add-ed to the United States notes still undiminished sti diminished by redemption or cancellation I cancella-tion constitute a volume of gold obligations ob-ligations amounting to nearly 300000 000 These obligations are the instruments j instru-ments which ever since we have had a gold reserve have been used to deplete THE FALLING GOLD RESERVE I This reserve as has been stated had fallen in April 1893 to 97011330 I has I from that time to the present with very few and unimportant upward movements move-ments steadily decreased except as it has been temporarily replenished by the sale of bonds I CAUSED THE SHRINKAGE Among the causes for this constant I and uniform shrinkage of this fund may be mentioned the great falling off I of exports under the operations of the tariff law until recently in force which I crippled our exchange of commodities with foreign nations and necessitated to some extent the payment of our balances bal-ances In gold the unnatural infusion of silver into our currency and the increasing i In-creasing agitation for its free and unlimited un-limited coinage which have created apprehension ap-prehension as to ou disposition or I ability to continue gold payments the consequent hoarding of gold at home I and the stoppage of Investments of foreign for-eign capital as well as the return of I our securities already sold abroad and the high rate of fpreign exchange I which induced the shipment of qur gold to be drawn against Is a natter I of speculation I ISSUE AND SALE OF BONDS In consequence of these conditions the gold reserve on the first day oj February 1894 was reduced to 65438 377 having lost more than 310000000 during the preceding nine months or since April 1893 Its replenishment being be-ing necessary and no other manner of accomplishing it being possible resort was had to the issue and sale of bond provided for by the resumption act of 1875 Fifty million of these bonds I were sold yielding 6863329571 which I was added to the reserve fund of gold then on hand As a result of this operation oper-ation this reserve which had suffered constant and large withdrawals in the meantime stood on the 6th day of March 1894 at the sum of 107446802 was however immediately I Its depletion depleton wa Is thereafter so accelerated that on the 30th day of June 1894 i had fallen to 64873023 thus losing by withdrawals more than 42000000 in five months below its situation II and dropping slightly is siua thin when the sale of 50000000 in bonds was effected for its replenishment replenish-ment This depressed condition grew worse and on the 24th day of November Novem-ber 1894 our gold reserve being reduced I re-duced to 57669701 It became necessary to again strengthen It This was done by another sale of bonds amounting to 50000000 from which was realized 58 SSsisoO with which the fund was increased in-creased wih 111142021 on the 4th day of December 1894 AGAIN DISAPPOINTMENT Again disappointment awaited the anxious hope for relief There was not even a lull In the exasperating withdrawals with-drawals of gold On the contrary they grew larger and more persistent than ever between the 4th day of De ember em-ber 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 69000000 and had fallen to 41340181 Nearly 4500000 had been withdrawn within the month immediately immedi-ately preceding this situation AUTHORITY TO ISSUE GQLD BONDS ASKED In anticipation of Impending trouble I had on the 28th day of January 1895 addressed a communication to the Congress Con-gress fully setting forth our difficulties and dangerous position and earnestly recommending that authority be given the secretary of the treasury to issue bonds bearing a low rate of interest payable by their terms in gold for the purpose of maintaining a sufficient gold sere and also for the red mv e I ton and cancellation of outstanding I United States notes and the treasury notes issued for the purchase of silver I under the law of 1890 This recommendation recommen-dation did not however meet with legislative leg-islative approval THE ARRANGEMENT WITH MORGAN MOR-GAN ET AL In February 1895 therefore the situation sit-uation was exceedingly critical With a reserve perilously low and a refusal of congressional aid everything indicated indi-cated that the end of gold payments j by the government was imminent The i results of prior bond issues had been exceedingly unsatisfactory and the unsatsfactor large withdrawals of gold immediately succeeding their public sale in open market gave rise to a reasonable suspicion sus-picion that a large part of the gold paid into the treasury upon such sales was promptly drawn out again by the presentation of United States notes or treasury notes and found its way to the hands of those who had only temporarily tem-porarily parted with it in the purchase of bonds In this emergency and in view of its surrounding perplexities it became entirely en-tirely apparent to those upon whom the struggle for safety was devolved not only that our gold reserve must for the third time in less than thirteen months be restored by another issue and sale of bonds bearing a high rate of Interest and badly suited to the purpose but that a plan must be adopted for their disposition promising better results than those realized on previous sales An agreement was therefore made with a number financiers finan-ciers and bankers whereby it was stipulated stip-ulated that bonds described In the redemption re-demption act of 1875 payable in coin thirty years after their date bearing interest at the rate of 4 per cent per annum and amounting to about 62 000000 should be exchanged for gold receivable by weight amounting to a little more than 63000000 This lte in gold was to be delivered wa such Installments as would complete its delivery within about six months from the date of the contract and at least onehalf of the amount was to be furnished from abroad It was also al-so agreed by those supplying this gold that during the continuance of the contract con-tract durng would by every means in their power protect the government contract against gold withdrawals The also provided that i Congress would authorize their Issue bonds payable by their tepms in gold and bearing interest at the rate of 3 per cent per annum might within ten days be substituted wihin at par for the 4 per cent bonds described de-scribed in the agreement On the day this contract was made its terms were communicated to Congress by a special spec-ial executive message in which It was stated that more than sixteen millions of dollars would be saved to the government I gov-ernment if gold bearing 3 per cent Interest erment bearng terest were authorized to be substi tuted for those mentioned in the contract con-tract tractRESULT OF THE CONTRACT The Congress having delcined to grant the necessary authority to secure grnt neesa this saving the contract unmodified in gold reserve was carried out resulting 0 serve amounting to 107671330 on the 8th day of July 1895 The performance of this contract not only restore1 the reserve but checked for a time the withdrawal of gold and brought on a period of restored confidence and such peace and quiet in business circles as were of the greatest possible benefit to every interest that affects our people I have never had the slisfatist misgiving mis-giving concerning the wisdom or propriety pro-priety concen th arrangement and am quite willing to answer for my full share of responsibility for its oromo tion I believe it averted a disaster the imminence of which was fortunately fortun-ately not at the time generally understood under-stood by our people RENEWED WITHDRAWAL3 Though the contract mentioned stayed for a time the tide of gold withdrawal with-drawal its good results could not be permanent Recent withdrawals have reduced the reserve from 5107371320 on the 8th day of July 1893 to 79333960 How long it will remain large eRough to render Its increase unnecessary is only a matter a conjecture though quite large withdrawals fo shipment in the Immediate future ar predicted In well informed quarters About 16 000000 has been withdrawn during the month of November The foregoing statements of events and conditions developed the fact that after Increasing our interest bearing bonded indebtedness more than 162 000000 to save our gold reserve we are now nearly where we started having now in suth reserve 79333966 as against 65438377 in February 1894 when the first bonds were issued The amount drawn from the treasury appears ap-pears very large gathered from the facts and figures erin presented jt actually was much larger considerable sums having been acquired by the treasury within the several periods stated without the Issue of bonds AMOUNT OF THE WITHDRAWALS On the 28th of January 1895 it was reported by the secretary of the treas nay that more than 172000000 of gold < had been withdrawn for hoarding or shipment during the year preceding He now reports that from January 1 1879 to July 1 1890 a period of more than eleven years only a little over 28OOQ000 was withdrawn and that between July 14 1890 the date of the passage of the law for an increased purchase of silver and the first o December De-cember 1895 or within less than five and a half years there was withdrawn nearly 375000000 making a total of more than 403000000 withdrawn from the treasury in gold since January 1 I 1879 the date fixed in 1875 for the retirement re-tirement of the United States notes Urrent te I TREASURY NOTES READY FOR MORE DEPLETION Nearly 327000000 of the gold thug withdrawn hag been paid out on these United States notes and yet every one of the 346000000 is still uncancelled and ready to do service in future gold depletions More than 76000000 In gold has since their creation in 1890 been paid out from the treasury upon notes given on the purchase of silver by the government and yet the whole amounting to 153000000 except a lit tIe more than 16000000 which have been retired by exchanges for silver at the request of the holders remains outstanding and prepared to j6in their older and more experienced allies in future raids upon the treasurys gold eiu1n other words the government govern-ment has paid In gold more than I ninetenths of its United States notes and still owes them all I has paid in gold aibout onehalf of its notes given gven for sliver purchases without extinguishing extin-guishing by such payment one dollar of these notes RETIREMENT OF GREENBACKS RECOMMENDED When added to all this we are reminded re-minded that to carry on this astounding astound-ing financial scheme the government has incurred a bonded Indebtedness o 95000000 in establishing a gold reserve re-serve and of 162315400 In efforts to maintain it that the annual Interest charge on such bonded Indebtedness is more than 11000000 that a continuance continu-ance In our present course may result In further bond issues and that we suffered orare threatened with nil this for the sake of supplying gold for foreign shipments or facilitating its hoarding at home a situation is exhibited ex-hibited which certainly ought to arrest attention and provoke Immediate legislative legis-lative relief I am convinced the only thorough andpractical remedy for our troubles is found in the retirement and cancellation of our United States wctes commonly called greenbacks and the outstanding treasury notes issued by the government in payment of silver j purchases under the act of 1890 HOW TO ACCOMPLISH IT I believe this could < be quite readily accomplished by the exchange of these notes for United States beads of small as well as large denominations bearing a low rate ot interest They should be long term bonds thus increasing their desirability as investments and a because their payment could be well postponed to a period far removed from present financial burdens and perplexities when with increased prosperity pros-perity and resources they could be more easily met To insure the cancellation can-cellation of these notes and also provide pro-vide a way by which gold may be added to our currency in lieu of them a feature In the plan should be an authority given to the secretary of the treasury to dispose of the bonds rOad for gold if necessary to complete com-plete thecontemplated redemption and cancellation by permitting him to use the proceeds of such bonds to take up and cancel any notes that may be in the treasury or that may be received by the government on any account The increase of our bonded debt involved in-volved In this plan would be amply compensated by renewed activity and enterprise in all business circles Tha restored confidence at home the reinstated rein-stated faith In our monetary strength abroad and the stimulation of every interest and industry would follow the cancellation of the gold demand obligations obli-gations now afflicting cs A MENACE OF UNENDING BONDS In any event the bonds proposed would stand for the extinguishment ota ot-a troublesome Indebtedness while In the path we now follow there lurks the menace of unending bonds with our indebtedness still undischarged and aggravated In every feature The obligations obli-gations necessary to fund this indebtedness in-debtedness would not equal in amount those from which we have been relieved re-lieved since 1S934 by anticipation and payment by the requirements of the sinking fund out of our surplus revenues HOW TO SUPPLY A CURRENCY The currency withdrawn by the retirement re-tirement of the United States notes and treasury notes amounting to probably pro-bably less than 486000000 might be supplied by such gold as would be used on their retirement or by an increase In-crease In circulation of our national banks Though the aggregate capital of these now In existence amounts to more than 664000000 their outstanding outstand-ing circulation based on bond security amounts to only about 190000000 They are authorized to issue notes amounting to 90 per cent of the bonds deposited to secure their circulation but in no event beyond the amount of their capital stock and they are obliged to pay 1 per cent tax on the circulation they issue NATIONAL BANK CIRCULATION I think they should be allowed to issue is-sue circulation equal to the par value of the bonds thry deposit to secure It and that the tax on their circulation should be reduced to onefourth of 1 per cent which would undoubtedly meet all the expense the government Incurs on their account In addition they should be allowed to substitute or deposit In lieu of the bonds now re qulreU as security for their circulation those which would be Issued for the purpose of etitlng the United States notes and treasury notes The Thanks already existing if they desired to avail themselves of the provisions of law thus modified could issue circulation circula-tion In addition to that already outstanding out-standing amounting to 478000000 which would nearly or quite equal the currency proposed to be cancelled In any event I shjuld confidently expect to see the existing national banks or others to be organized avail themselves them-selves of the proposed encouragement to issue circulation and promptly fill any vacuum and supply every currency cur-rency need LIMITATION OF LOCATION It has always seemed to me that the provisions of law regarding the capital of national banks which operate oper-ate as a limitation to their location ails to make proper compensation for the suppression of state banks which came near to the people in all sec Jons of the country and readily furn shed them with tanking accommodations accommoda-tions and facilities TO REMEDY THE INCONVENIENCE Any Inconvenience or embarrassment arising from these restrictions on the location of national banks might wejl be remedied by better adapting the present system to the creation of banks in smaller communities or toy permitting permit-ting banks of large capital to establish branches in such locations as would serve the people so regulated and restrained re-strained as to secure their safe and conservative control and management PURVEYOR OF GOLD FOR THE NA TIONS But there might not be the necessity neces-sity for such an addition to the currency cur-rency by new issues of bank circulation circula-tion as sit first glance is indicated If wa should be relieved from maintaining a gold reserve under conditions that constitute con-stitute it the barometer of our solvency and our treasury should no longer be the foolish purveyor of gold for nations na-tions abroad or for speculation and hoarding by our citizens at home I should expect to see gold resume its natural and normal functions in tine business affairs of the country and cease to be an object attracting the timidof our people and exciting their sensitive Imaginations DISPOSITION OF TREASURY SILVER SIL-VER I do not overlook the fact that the cancellation of the treasury notes Issued is-sued under the silver purchasing act of 1890 would leave the treasury in the actual ownership of sufficient silver including selgnoriage to coin nearly 178000000 in standard dollars It is worthy of consideration whether this might not from time to time be converted into dollars or fractional coin and slowly put nto circulation as in the judgment of the secretary of the treasury the necessities of the country should require Whatever is 1 attempted should be entered upon fully appreciating the fact that by a careless care-less easy descent we have reached a dangerous depth and that our ascent will not be accomplished without laborious toll and struggle We shall be wise if we realize that we are financially ill and that our restoration to health may require heroic treatment and unpleasant remedies AMOUNT OF REVENUE AS A FACTOR In the present stage of our difficulty it is not easy to understand how the amount of our revenue receipts directly direct-ly l affects it The important question Is not the quantity of money received in revenue payments but the kind of money we maintain and our ability to continue a sound financial condition We are considering the governments holdings of gold as related to the soundness of our money and as affectIng affect-Ing our national credit and monetary strength If our gold reserve had never been impaired or if no bonds had ever been Issued to replenish it if there had been no fear and timidity concerning our ability to continue gold payment if any part of our revenues were not 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 influential factor in the problem but unfortunately all the circumstances that might lend weight to this consideration con-sideration are entirely lacking NO GOLD RECEIVED FOR REVENUE REV-ENUE CHARGES In our present predicament no gold is received by the government In payment pay-ment of revenue charges nor would there be if the revenues were Increased Increas-ed The receipts of the treasury when not In silver certificates consist con-sist of United States notes and treasury treas-ury notes issuer1 for silver purchases pur-chases These forms of money are only useful to the government govern-ment in paying its current ordinary ordi-nary expenses and its quantity in government possession does not in the least contribute toward giving us the kind of safe financial standing or condition which is built on gold alone If it Is said that these notes if held Continued on page R HITS S LL M W AJ JUUal J N PRESmENTMESSAGE MESSAGE Continued from Page 3 T > > the government can be used to ob till guld from our reserve the answer Is easy The people draw gold from th ftasury cn demand upon United States n6tf > and notes but tat s n tPs treasury lut tho pr < oston that the treasury ann an-n demand draw gold from the people i I i i them would b regarded in these i clays ith wonder and amusement tv if this could be done There 5s 1 thrg to prevent those thus parting I v 1 J their aold from regaining I then I the-n xt day or the net hour by the pre t rtatltn of the notes thy received inc I in-c x li i age fr It The secretary of the treasury irigh use such not s taken i S r m 3 surplus revenue to buy god in tV irark Of course ha could not d5 this without paying a premium I PARITY OF GOLD AND SILVER I rivals < holders of gold unlike the rnornment having no parity to maui till would not be restrained irons r iakng the best bargain possille when I thty furnshed gold to the treasuiv but the nomont the secretary of the tr as T bought gold on any terms si n par he would establish a genera ard universal premum upon it thus breaking down the purity between gold and silver which the government is pledged to maintain and opening they the-y to new and serious complications In tnt meantime the premium would jtct remain stationar and the absurd sm ctadc might be Iresented of a dealer deal-er siiinp gold to the government and will rr ltd States notes or treasury f in his hand immediately clamor r T fr < lt return and a resale at a JJlh l prmlum LET1NflO OF THE NOTES BY THE TREASURY Ic my bo claimed that a large reve fav tm jrjt uundant receipts might rally affect the situation under die ussi > n ly affording an opportunity til rc taming these notes in the treasury Mil n ivrnved and thus preventing th1 pnsentatiin for gold Such ret re-t rUn to be useful ought to be at 1 at iiirasurably permanent and this is rn ish what is prohibited so far as I niti States notes a concerned 1n ihi law of ISIS forbidding their fur n > r r tirement That statute in so many w > rds provides that these notes u ici received into the treasury and bclunri g to the United States shall 11 > jiid out again and Itept in circulation circula-tion I will moreover be readily could not re sn > that the government fn fUI ft to pay out United States notes and frasury notes in current transactions hn demanded and insist on paying ut 1iyr alone and still maintain the 1 truy itu i een that metal and the cur r IKV representing gold Besides the rumulation in the treasury of cur T ny of any kind exacted from then I the-n po through taxation is justly re Z rLd as an evil and i cannot proc pro-c c 1 1 far without vigorous protest unjusifiable retention of gainst an unjlsflfable rCtenton o of the country m nry from the business of try jnd a denunciation of a scheme taxation which proves itself to be un just when I ale from the earnings I rd income of the citizen money so I mu 1 < > h in excess of the needs of the I that large sums I S > wrnm < Tt support that I can be gathered and kept in the treas has heretofore ury Such a condition ha in times of surplus revenue led the K vernment to restore currency to the of its unma > the purchase porl by it tJd bonds at a large premium and a Urge increase of its deposits inV T in-V > nal T > anks and we easily remem 1 > r fh it the abuse of treasury accnmu H ti n has furnished a most persSfsive avunvnt in favor of legislation radii radi-i iv reducing our tariff I SENTIMENTAL IMPROVEMENT OF THE SITUAION I P baps it is supposed that suf fi ient revenue receipts would in a I stitimrntnl way improve the situation I Inspiring confidence in our solvency y rirlng confdencc I a1 illaylns the fear of pecuniary cx liau tmn and yet through all our t Buggies to maintain our gold ref i i f there never has been any ap unsion a to our ready ability to nav our way with such money as we i J and the question whether or not I cur current receipts met our current I I < ponpes has not entered into the estimate I esti-mate of our solvency Of course the I II p neat state of our funds exclusive < gold u as entirely immaterial to the orcign creditor and investor His in i I tvrtst could only be paid in gold ands I and-s only concern was our ability to I 1pfp on hand that kind of money I NET BALANCE JULY 1 iSIS On July 1 1893 more than a year i I cad a half before the first bonds were I issued to replenish the gold reserve I I Lbere was a net balance MI the tress I try exclusive of sudh reserve of less than 1 000000 but the gold reserve I amounted to more than 114009000 Tvhkh was the quieting feature of the sntoaiion I was when the stock of I I gld began rapidly to fall that fright supervened and our securities held brad > were returned for sale and I debts owed abroad were piessed for raiment Tn the meantime extensive I E inmorsii of gold and other unfavor ale ndcations caused restlessness and fright among ou people at home I PURPOSE OF GOLD WITHDRAWALS I WITH-DRAWALS ThPTcupon the general state of our I funds exclusive of gold became also Immaterial to them and they too drew I god from the treasury for hoarding ag < ilrst all contingencies This is I plainly sr own by the large increase in < JC proportion of gold withdrawn whit h a retained by our own peo I p1 S s time and threatening incidents i progressed During the fiscal cal I ending June SO 1S94 nearly 583000000 In god was withdrawn from the treasury treas-ury and niout 77000000 was sent abroad WnUe during the fiscal year ending June 30 1895 over 117000000 a drawn ru of which only olwut 5SGOC0000 was shipped leaving the large balance of such withdrawals te lag he accounted for by domestic hoard IngWITHDRAWALS WITHDRAWALS RESULT DB FRIGHT Inasmuch as the withdrawal ot our gold has resulted largely from gld r u1ed 1agey frm fright there is nothing apparently that tlee aDprent t1at will prevent its continuance or recurrence with its natural consequences except such a change In our financial methods as will reassure the frightened and make the desire for gold less Intense I Is not clear how a increase in i rIY < DUe unless i be in gold can sat ls < y those whoso only anxiety Is to gajn gold from the governments store Sn cannot therefore be safe to rely upon Increased revenues as a cure for our present troubles BONDS NOT ISSUED T SUPPLY REVENUE It is possible that the suggestion of sugeston Increased revenue as a remedy for the difficulties we are considering may have originated in an intimation of distinct dis-tinct allegation that the bonds which have been Issued ostensibly to replen ish our gold reserve were really issued to supply Insufficient revenue Noth inS could be farther from the truth Bonds were Issued to obtain Issue obtIn gold for the maintenance of our national te ntenace < natona credit A has been shown the gold thus obtained ob-tained a been drawn again from the ag te treasury upon United States motesand treasury notes This operation would lave been promptly prevented If possi Ixle but these notes having thus been passed to the treasury pae treasur they became the money of the government like any other ordinary government funds and then was nothing to do but UPS them JH paying government expenses when i needed At no time when bonds have t r S Lt S been Issued has there been any consideration con-sideration of the question of paying the expenses of government with their proceeds pro-ceeds There was no necessity to consider con-sider that question At the time of each bond issue we had a safe surplus sae in the treasury for ordinary operations exclusive the gold in our reserve In February 1S94 when the first issue of bonds was made such surplus amounted to over 18000000 In November No-vember when the second issue was secon made it amounted to more than S42 mor 000000 in February 1895 when bonds for the third time were issued such surplus amqunted to more than S1CO 000000 it now amounts to 9St7243030 AUTHORITY OF THE SECRETARY OF THE TREASURY Besides all this the secretary of the treasury has no authority whatever to issue bonds to increase the ordinary revenues or pay current expenses I cannot bnt think there has been some confusion of ideas regarding the effects ef-fects of the issue of bonds and the results of the withdrawal of gold I was the latter process and not the former that by substituting in the treasury United States notes und teas ury notes for gold increased to their amount the money which was in the first Instance subject to ordinary guy crnment expenditures BEGINNING OF WITHDR WVALS ON SILVER NOTES Although the law compelling an increased in-creased purchase of silver by the gov eminent was passed on the 14th day f July 1890 withdrawals of sold from the treasury upon the notes given in payment on such purchases did not begin until October 1S91 Immediately following that date the witlidnuvals upon both these notes and united States notes increased very largely and have continued to sucli an extent that since the passage if that law there has been more than thirteen times a much gold taken out of the treasury upon United States and treasury I treas-ury notes issued for silver purchases as was thus withdrawn during the eleven and a half years immediately prior thereto and after the the 1st flay of January 1S7D when specie payments were resumed PRESENT FINANCIAL PERPLEXITIES PERPLEX-ITIES I is I neither unfair nor unjust to I charge a large share of our present financial perplexities and dangers to the operation of the la1 of 187S and I 1S30 compelling the purcnase of silver by the government which not only furnished a new treasury obligation I upon which its gold could be with I Cthaf dbt eiJ drawn but also so increased the fear of an overwhelming flood of silver and a forced descent to silver payments fhr fi ir lh li that even the repeal of these laws did not entirely cure the evils of their existence FREE COINAGE OF SILVER While I have endeavored to make a plain statement of the disordered condition con-dition of our currency and the present pres-ent dangers menacing our prosperity and to suggest a way which leads to a safer financial system I have constantly con-stantly had In mind the fact that many of my countrymen whose sincerity I do not doubt insist that the cure for the his now threatening us may be found I in the single and slmpleremedy of the free coinage of silver They contend I I that our mints shall be at once thrown j open to the free unlimited and inde J pendent coinage of both gold and silver sil-ver dollars of full legal tender quality regardless of the action of any other government and in full view of the I fact that the ration between the two > metals which they suggest calls for one hundred cents worth of gold in the I gold dollar at the present standard and only fifty cents In intrinsic worth of silver In the silver dollar A HAZARDOUS EXPERIMENT Were there infinitely stronger reasons rea-sons than can be adduced for hoping that audit action would secure for usa us-a bimetallic currency moving on lines of parity an experiment so novel and I hazardous as that proposed might nell stagger those who believe that stability stabil-ity is a Imperative condition of sound money No government no human contrivance or act of legislation has ever been able to hold the two metals I together in free coinage at a ratio appreciably ap-preciably different from that which is established in the markets of the I world I EXPERIMENTS IN THE PAST Those who believe that our independent independ-ent free coinage of silver at an artificial ucla ratio of 1C to 1 would restore f N Aew the parity between the metals and consequently between the coins oppose an unsupported and probable I theory j theo-ry to the general belief and practice i of other nations and to the teaching of t the wisest statesmen and economists j of the world both in the past and present pres-ent and what is far more conclusive they run counter to our own actual cx neriences Twice in our earlier history our law makers In attempting to establish estab-lish a bimetallic currency undertook free coinage upon a ratio which accidentally dentally varied from the actual relative rela-tive values of the two metals not more than three per cent In both cases notwithstanding greater difficulties and I cost of transportation than now exist the coins whose intrinsic worth was I undervalued in the ratio gradually and surely disappeared from our circulation circula-tion and went to other countries where their real value was better recognized Aets of congress were impotent to cre ate equality where natural causes decreed de-creed even a slight inequality Twice in our recent history we have signally failed t raise by legislation the value of silver Under an act of congress passed in 1S7S the government was required quired for more than twelve years to quire expend annually at least 24000000 in the purchase of silver bullion for coinage coin-age The act of July 14 1800 in a still bolder effort Increased the amount the was com of Silver government wa pelled to purchase and forced it to I pell become the buyer annually of 54000000 beomc ounces or practically the entire product I prod-uct of our mines Under both laws I silver rapidly and steadily declined in I sl value The prophecy and the expressed expectation of those in con hope and ep ttO < gress who led in the passage of the ges mentioned act that it would reestablish lat mentone ac establish and maintain the former par estblsh metal are still the two ity between metal sti fresh in our memory i FREE SILVER A SIGNAL FOR GOLDS DEPARTURE In the tight of those experiences I ia lght of which accord with the experiences wblh < there is certainly no other nations ther cerainly secure othe ground for the oelief that an I act of Congress could now bridge an Inequality of 50 per cent between gold and silver at our present ratio nor is there the least possibility that our t < r lest posslblt tat country which las less than one seventh of the silver money in the world could by its action alone raise not only our own but all silver to its Our attempt to lost ratio with gold Or tempt accomplish this by the free coinage of silver at a ratio differing widely from actual relative alues would be the signal for the complete departure bf gold from our circulation the immediate Im-mediate and large contraction of our circulating medium and a shrinkage In the real value and monetary efficiency ef-ficiency of all other forms of currency as they settled to the level of silver monoraetalism Every one who receives re-ceives a fixed salary and every worker for wages would Und the dollar in his hand ruthlessly scaled down to a point of bitter disappointment If not to pinching privation A SILVER STANDARD WOULD CAUSE A COLLAPSE OF CREDIT A change In our standard to silver monomeallsm would also bring on a collapse jot the entire system of credit which when based on a standard which 1 recognized and adopted by the world of business Is many times more potent and useful than the entire en-tire volume of currency and Is safely capable of almost Indefinite expansion to meet the growth of trade and enterprise enter-prise I In a selfinvited struggle through darkness and uncertainty OU humilia I tion would be Increased by the consciousness con-sciousness that we had parted company com-pany with all the enlightened and progressive nations of the world and were desperately and hopelessly striving striv-ing to meet the stress of modern commerce com-merce and competition with a debased and unsuitable currency and in association as-sociation with the few weak and laggard lag-gard nations which have silver alone as their standard of value HISTORY WARNS US AGAINST RASH EXPERIMENTS AH history warns us against rash experiments which threaten violent changes In our monetary standard and the degradation of our currency The past Is full of lessons teaching not only the economic dangers but the national immorality that follows In the train of such experiments I will not believe that the American people can be persuaded after sober deliberation delibera-tion to jeopardize their nations prestige pres-tige and proud standing by encouraging encourag-ing financial nostrums nor that they will yield to the false allurement of cheap money when they realize that it must result In the weakening of that financial integrity and rectitude which Thus far in our history lias been so devotedly cherished as one of the traits of true Americanism FREE SILVER ADVOCATES REASON REA-SON FROM A CLOUDY S STA DPOI TOur T-Our countrys Indebtedness whether owing by the government or existing between individuals has been contracted con-tracted with reference to our present Standard To decree by act of Congress Con-gress that these debts shall be payable pay-able in less valuable dollars than those within the contemplation and intention inten-tion of the parties when contracted con-tracted would operate to transfer trans-fer by the fiat of law and without compensation an amouT of property and a volume of rights and Interests almost Incalculable Those who advocate ad-vocate a blind and headlong plunge in free coinage In the name of bimetallism bimetal-lism and professing the belief contrary 4o all experience that we could thus establish a double standard and a concurrent con-current circulation of both metals in our coinage are certainly reckoning from a cloudy standpoint I WORLDS STANDARD OF VALUES Our present standard of value is the standard of the civilized world and I permits the oply bimetallism now possible pos-sible or at least that is within the independent reach of any single nation Ilion I-lion however powerful that nation may be While the value of gold as a standard is steadied by almost universal uni-versal commercial and business use i does not despise silver nor seek Its banishment ishment Wherever this standard is maintained there is at Its side in free and unquestioned circulation a volume of silver currency sometimes equaling antI someftimes even exceeding it in amount both maintained at a parity notwithstanding a depreciation or fluctuation in the intrinsic value of silver STANDARD OF VALUE MUST BE FIXED There is a vast difference between a standard of value and a currency for monetary use The standard must necessarily be fixed anti certain The currency may be in diverse forms and of various kinds No silver standard country has a gold currency in circulation circula-tion but an enlightened and wise system sys-tem of finance secures the benefits of both gold and silver as currency and Circulating medium by keeping the standard stable and all other currency at par with i Such a system and such a standard also give free scope for the use and expansion of safe and conservative credit so inciisptnsanie to broad and growing commercial transactions and so well substituted for the actual use of money I a fixed and stable standard Is maintained such as the magnitude mag-nitude and safety of our commercial transactions and business require the use of money itself is conveniently minimized Every dollar of fixed and stable value has through the agency of confident credit an astonishing capacity of multiplying itself in financial finan-cial work Every unstable and fluctuating I fluctu-ating dollar fails as a basis of credit I anti in its use begets gambling speculation specula-tion and undermines the foundations of honest enterprise FREE SILVER A DANGER TO OUR I PROSPERITY I I have ventured to express myself Ion I-on this subject with earnestness and I plainness of speech because I cannot rid myself of the belief that there lurks in theproposition for the free coinage of silver so strongly approved and so enthusiastically advocated multi enthusiaten odOCtd by a mult tude of my countrymen a serious menace men-ace to our prosperity and an insidious temptation for our people to wander from the allegiance they owe to public and private integrity I Is because I do not distrust the good faith and sincerity sin-cerity of i those who press this scheme that I have Imperfectly but with zeal submitted my thoughts upon this momentous mo-mentous subject I cannot refrain from begging them to reexamine their views and beliefs in the Hgli of patriotic pa-triotic reason ant familiar experience and to weigh again and agafn the consequences con-sequences of such legislation as their efforts have invited Even the continued con-tinued agitation of the subject adds greatly to the difficulties of a dangerous ous financial situation already forced upon us APPEAL TO CONGRESSMEN In conclusion 1 especially entreat the peoples representatives in the Congress Con-gress who are charged with the responsibility re-sponsibility of inaugurating measures for the safety am prosperity of our common country to promptly and effectively consider the Ills of our critical financial plight I have suggested sug-gested a remedy which my judgment approves I desire however to assure the Congress that I am prepared to cooperate operate with them in perfecting any other measure promising thorough and practical relief and that I will gladly labor with them in every patriotic endeavor en-deavor to further the interests and guard the welfare of our countrymen whom In our respective places of duty we have undertaken to serve Signed GROVER CLEVELAND Washington D C Executive Mansion Man-sion December 2 1895 S VItIARD WHISllillS WILLARD CITY Utah Dee 3 Willard has one of the best locations of any town in the territory for the establishment of a system of waterworks water-works Our city fathers have made an estimate of the cost of construction and nave appointed a meeting for Saturday urday evening next when the matter will be presented to pie citizens ctzens Nearly everyone approves oC the Idea of putting in the system the only question being as to which is the best method to adopt to provide the prvide te neces sary funds Some advocate bonding the city while others prefer raising the amount by direct taxation During the last week In November there has been quite an addition to the population of our little city by the arrival of four brand new babies and all of them seem to like the country coun-try and no doubt will make this their permanent home We have not heard at present the full names of the new arrivals but their fathers sign their names as James S Per S N Cook J B Taylor and William E Cole The storms that we have had during the last fortnight have deposited considerable con-siderable snow In the mountains and the farmers are rejoicing over the prospects ot an abundant supply of water for next season |