PRESIDENTIAL TALK.
-ANNUAL MESSAGE OF PRESI
DENT CLEVELAND.
rorelgc Affairs Lightly Touched Upon
Relation of United States With Other
atioa A History of the Treasury
Xira-nlty and Kfforts Put Forth to
Remedy It -Other Subjects Under Dls--ousaion.
The President's Message.
Washington, Oec. 3. The following
'Is tin- I 'resident's messag-e:
To IrF. CoKfl KE8S OT THE UNITED STATES:
Tii tre-nt assemblage of the legislative
tirxnch t1-! our irovernmeat occur at a time
r!-a the i&tesvsts of our people and the needs
f lit country give fpc-cial prominen to the
.tmiition cf our foreign relation and the exi
gencies i.f our national finance. Trw reports
af iIie Tf-ral administrative departments of
th .mvernnien fully and plainly exhibit what
ta.-;o o mplishHl within the scope of their
T!)ftite dt-tios and present such return mend- j
for the betterment of our country's con- j
(hhh a i atriotic and inte ligent labor and j
jlt-ervaiK-n mggest. j
H th-rvfr d em my executive duty ade- j
an.ifp'iv i-rformc l at this time by presenting:
v tin ' iu?r-s the important phases of our
utu.;ion & re atel to oar intercourse with ;
utM-ra nations, and a statement of the fin an- .
nl i-rtiiloai which confront us, omitting, ;
icrj- a thf y are related to these topics, any
re f-v etc?-1 departm -atal operations. j
1 onnieMly invite, howjver, not only the ;
sj.r-frl ct r.siieration, but the severely critical ;
scrutiny Hie I onurrss and my f-llow coun- ;
trjmf n to !. reports concerning these depart- (
-::tal pe. atioa. If justly and fairly exam
tc I thfjr furni-h proof of assiduous and
truT -takiLc care for the public welfare. 1 I
the- recommendations th'-y contain upon :
tl.-- renctfrd attention of thoso charged with !
Uir du'y 1 legislation, because I believe their
J.ptiri vioul 1 promote the people's good. j
Mifionary Riots in China, ;
The cIl,w f ths momentous strustgl ' between ;
riiir. :.cd Japan, while lelievinjr the diplo-w-tuc
agents of tbis government from the deli- ;
v-e duly they sa le took at request of both
.mitr.tT f f rt-nderirifr sn- h t-ervice tosubjeits
f r-iX'u r b liferent within the territory limits
ef tiie i.ther as our neutral position jpermitted,
aTflop-d a domestic condition in the Chinese j
u.p.:f which has canned much anxiety and
tail J fr p-ompt iind careful attention, j
Urher aa a result of a weak control b. the cen- 1
Ual gvercraent over tha provincial adminis- ;
tntiuas, fo!l'wirnr a diminution of traditional
foror nr.eutal authority und?r the stress of an
r.fa lmir. national disaster, or a manifesta
tion vx n xod o;i--ortnuity of the aversion of
tlw t hines-e iopulation to all foreign ways and
anJertakiiig?, there hare occurred in widely
separated prt winces of China serious outbreaks
f the old fa. aiic 1 spirit agam-t foreigners,
which. UL--.io.-kei by the local antho ities, if
oot a tufclly coanived at by them, have culmin- .
tl in mob attacks on foreign missionary (
tauous. causing ma:u destruction of pro;.er-
ty, end attended with p-:sonal injuries a well ;
lsif life. Although but one Am?iican
nti n was reporte I to have been actually '
wouu led and although the destruction of .
in-iprivmtjr hare fallen more heavily upon
th- u i-ionarie of other natioaali i -s than our .
oa. it ;laiil behooved this government o
U; tlie t prompr and decided action to
urd paiu-t similar or i erhaps more dread
ful c.-ilamit ie. )
lis demands of the United States and otiier '
j..or for the decredation and punishment of
tij-a reT-p. -riiWa officials of the respective cities
aud irovin?es who by neglect or otherwise had
r riuiit-d p-risiags and for the adoption of
iirn icciim by the Emperor's government
V r the jTtection of the life and property of
for .ttuers. vrere followed by the disgrace and
3 l jir.J of certain irovincial officials found
derelict in duty, and tba punishment by death
of a euilIxt of those found iruilty of actual
partic:; atii-n in the outrages. This govern
oi -nt a'.. ios.sted that a special American
souinis-ioa should vi-sit the provin.-e where
tlf lirst :iturbancea occurred for the purpo.-e
f iiivfttigatiou. This latter commission,
(mixl :tit-r much opposition, has gone over
Ln i f.om lien Tein acco mpanied by a suitable
I hin'-e- t-M ort, aud by its demonstration of the
c-.i-iiDt-t and ability of our government toprj-
t .ts citizens, will act, it is believed, as a most
hit'.xi 'i.t:al ttrrent i t eny similar outbreaks.
The Wilier Case, !
Tile' curtomiry cordial relations betwet-n this '
Muntry and France have ben undisturbed,
wi'h tite xception that a full explanation of
tie ir:itn( ct of John L, Waller by the expe
4ituvnry m ilitary authorities of France still
MTain- to tx- given. Mr. Waller, formerly
Utiii.i Stiitfi: ccnsv.l to Tamatave, remained in
aJadutrrc tftfr his term of ofiice expired
r.1 wa apparently eucces-sful in procuring
Uu.-iaes'!' concessions from the llovas, of greater
cr Irs vali. Aft-r tie? occupation of Tama
Uvt an-1 th d'"claratin of martial law by the
Fr ':!. Lr- v as arrrsted upon various charges,
- aio;? tli' that of communicating military
i:.!iin..a;4'0 to the enemy of France, was tried
sdI r .evicted by a military tribunal and
-t.t i.ct! to twenty years imprisonment. F'ol
l m; : tie course justified by abundant prece-
d-cts, th; government demanded from that,
- .f Frarc?1 the record of the proceedings of the
S'reurh tribunal, vhich resulted in Mr. Wal
lT"r c i-dcmaatioii. This request has
' If" n c milied with to the extent
-of euppljing a cojiy of the beneficial
rrd frt rn which appear the constitution and
rrc-ni2atitn of the Court, the charges as for
mulatl cr.d th? general course and result of
th trial and by wbicn it was shown that tha
avec-d wa triel in op. n court and was de
is.!e 1 b; counl. Hut the evidence adduced
in tup'wirt of the chaiges. which was not re
ceived by the French minister of foieign affairs
iiitl the first w.jk iu October, has thus far
I'-eu w.tLUe d. the French governmen taking
-the ground that its production in response to
-o r u 'taanvl would establish a bad precedent.
The eCorts of our ambassador to procure it,
Ijowwrcr, though impeded by reeeut changes in
ti French ministry have not boen relaxed and
it is confidently cxpeeted that some satisfac
tory so.ution of the matter wDl shortly be
racLd. Meanwhile it appears that Mr. al
ler' cornement has every allev iation which
tl;e state of his h?alth and all the other circuui
ataxces of the case demand or permit.
Trade Complications With Germany.
Our relation with the states of th Herman
ap.ie are in some aspects typical of a condi
tion of things dlsewh re found in a country
whose production and trade are similar to our
jvra- The close rivalry of competing indas
trij: the influence of th3 delusive doctrine
that the int -in I deve.opmant of a nation is
tyrora ted and it weal: h increas i ! by a policy
-wh.cSi. in liu lertalcin : to reserve its own mar
iietjt for the exel wio use of its wn producers,
& ssarily oIstru--t their al js ia foreign market-
aud i ievents frea access to markets of the
wo:;j; me desire t retain trade in time-worn
ruts, r' gardl'S of the inexorable law, of new
ti-eda:id charvgel conditions of demand and
a';;-;' v. and our own hatting tardiness in invit-
,in'z a ire exchange of commodities aud by this
'ru iDi imperdinx our rooting in the external
uiaii.e:s naturally open tons, have created a
ariatiun somewhat iujuriou to Amei ican ex--pxirt
interest, not only in Oermanv, where they
are p-rLaps no.t coti eable, but in adjacent
. o5' ntries ...
llio exports affected arc largely -American
-catth and other food prcxlucta, the reason
. assigned for unfavorable discrimination being
'that their consumption is deleterious to the
eufclic health. Thi is ail the more irritating
ia view of the fact that no European State is
-aa J a loos of the excellence and whole ome
ntB of it exported food supplies aa the United
states- nor so easily able, on account or inher
iat soundnea. to guarantor thoce quolirus.
w ., thM difficulties confined to ou- foxl
cwrnct desumed f r cxpor tat ion. Our great
mmti&nie'. for cinm -le having
-built up a vast business abroad and invested a
I srga ebare of their gains in foreign cj.nr.tnes
in compliance with the local law, and regula
tions then exisung. now find te. selves within
-a narrowing eircle of onerous f nd unforeseen
Editions, end are confront by the necessity
f retiremer-t from a field hese raade unprofit
Vbie.if indeei they are not wmm.rjl, ex
l2d. aa some of them bt. lately been in
to bJ gotten h.i -
nati nal trade can not be one-id'3 l Its cur
rent are alternating and its movements should
be honestly reciprocal Without thi it almost
aecearily degenerates ii; to a devi e to gaiu
advantage or a contrivance to tecure :eaets
with only the eomblam.e of a teturn. In our
dealings with other nations we ought to be
open-handed and scrupulously fair.
T'ais should be our policy as a producing n i
tion, and it plainly becomes us as a poop:e wh
love generosity and the moral atiects of na
tional good faith and reciprocal forbearance.
These considerations should not. however, con
strain us to submit to unfair d'scrimination
nor to silen tl y acqn iesce in v exa tio a s b in draucea
totheen;o,'inent of ur i hare of the legitimate
advantages of proper trade relations. . If ati
examination of the rituation suggests such
me.isures oa our part as would involve r stric
tions similar to thoe from which we suffer, the
way to such a ocurse is easy ; it should, how
ever, by no mean be lightl entered upon,
since the necesait ' for the inauguration olsuHh
a policy would be regretted by the best penti
ment of our people, aad becauso it naturally
and logically might lead to onsepuencea of the
gravest character.
Tha Behring Sea Matter.
Our relations with Great B itaia. always in
timate and important, hare demanded, during
tha p ist year, even a greater share of consider
ation than is usual. Several vexatious ques
tions were left undetermined by the decision of
the Behriao- sea arbitration tribunal. The ap
plication of the principles laid down by the
august body has not been followed by the re
sults they were intanded to accomplish, either
b'causo the principles th? nisei res lacked in
breadth aud definiteness or because their exe
cution has been more or less imperiect The
understanding by which t le Un.tsd States was
to pay and Great i ritain to receive a lump
sum of $ia,00 in ful. settlement of all British
claim for damag -s aristug from our seizure of
Britisii sealing ves eis unauthorized under the
award of the I'aris tribunal of arbitration was
not oonflrme I by the last Congress, which do
clin?d to make the necmsarv appropriat on I
am still of the opinion that this airang;ment
was a judicious and advantageous ono for the
government, and I earnestly recomm?n i that
it ba 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 u bound
to every consideration of honor and good faith
to provide for the speedy adjustment of these
claims by arbitration as the only other alterna
tive A treaty of arbitration has, therefore,
been agreed upon and will be immediately laid
before the Senati so that, in one of the modes
suggestel, a final settlement may be reached
The Venezuela Issue.
It being appareut that the boundary dispute
between Great Britain and the Republic of
Venezuela, concerning tha limits of British
Guinea, was approaching an acuta stage, a
dennite statement of the interest and polioy of
the United States as regards the controversy
seemed to be required both on its own account
and in view of ;ts relations with the friendly
powers directly o ncerned. In July lait, there
foie, a dispatch was addressed to our ambassa
dor at London for communication to the British
government in which the attitude of 'fle United
Sta es was fully and distinctly set forth. Tha
general conclusions there reached ml formu
lated are in substance that the traditional and
established policy of this government is firmly
opposed to a forcible increase by any European
power of it territorial possessions on thi conti
nent; that this policy is as well founded in
principle as it Is strongly supported by nu
merous precedents; that as a consequence the
United Stutoi is bound to protest against the
en argemeut of the araa of British Guinea , n
derogation of the rights and against the will of
Venezuela; that, considering the disparity in
strength of Great Britain and Venezuela, the
territorial dispute between them can be easily
settled only by friendly and impartial arbitra
tion and that the ieort to such arbitration
should include thi whole controversy and is
not sati-tied if one of the powers concerned is
permitted to draw an arbitrary line through the
territory in debate and to declare that it will
submit to arbitration only the portion lying on
one side of it. In view of these conclusions the
dispatch iu question called up.n the British
government for a de Unite answer to the question
whether it would or would not submit the terri
torial controversy between itself and Venezuela
in its entirety to impartial arbitration. The
answer of tha British government has not yet
been receive i but is expected shortly when
further communication on the subject will prob
b' y be made to congress.
The Hawaiian Matter.
Early in January last an uprising against the
government of Hawaiia wa promptly sup
pressed. Martial law was forthwith pro
claimed and numerous arrests were made of
persons suspected of being in sympathy with
the Royalist party. Among these were several
citizeus of the United States, who were either
convicted by a military court and sentenced to
death, imprisonment or fine, or were deported
without trial. The United States, while deny
ing protection to those who had taken the Ha
waiian oath of allegiance, insisted that martial
law, though altering the forma of justice, could
not supercede justice itself, and demanded a
stay of execution until the proceedings had
been submitted to this government, and knowl
edge obtained therefrom that our citizens had
received fair trial. The death sentences were
subsequently commuted or were remitted on
condition of leaving the islands. The cases ol
certain Americans arrested and expelled by ar- ;
bitrary order, without formal charge or trial,
have bad attention, aud in some instances have
been found to justify remonstrance and a claim '
for indemnity, which Hawaii a has thus far not
conceded. Mr. Thurston, the Hawaiian Minis- .
ter, having furnished this government abund
ant reason for asking that he be recalled, that
course was pursued and his successor has
lately been received.
Lynching of Italians In Colorado.
The deplorable lynching of t-everal Italian
laborers in Colorado was natur.Uly followed by
international representation and I am happy
to say that the bist efforts of the State in
which thsu outrages occurred have been put
forth to di -cover and punish the authors of this
atrocious crim . The dependant families ot
some of the unfortunate victims invite by theii
deplorable condition gracious provision fot
their needs. Thee manifestations against
helpless aliens may be traced through succes
sive stages of th vicious padroni system whti
unchecked by our immigration and contract
labor statutes, controls thise workers from the
m ment of landing on our shore, and farms
them out in distant and often rudo regions,
where their cheapening competion in the fields
of bread winning toil brings them iu collision
with other labor into, ets. While welcoming,
as we should, those who seek our shores ta
m"rgo thenis Ives in ur body politics and win
per onal competence by honest effort, we can
not regard such assemblages as distinctively
alien laborer, hired out in the mass to the
profit of .tiien speculators and shipped hithet
and thither as the pri spe t of giin may dic
tate, as ethn wis than repugnant to the r ght
cf our civilization deterrent to individual ad
vancement and hindrances to the buiiding up
of stable com. uuntti resting upon the whole
some ambitions of the citizen and constituting
the prime facior in the prosperity and progress
of our nation If legislation can reach this
growing evil it certainly should be attempted.
Congratulations for Japan.
Japan has furnished fcbuudant ' evidence ot
hir vast gain in every trait and characteristic
that constitutes a nation's greatness. We have
reason for congratulation in the fact that the
government of the United States, by the ex
change of liberal treaty stipulations with the
new Japan, was the first to recognize her won
derful advancement and to extend to her the
consi leration and confidence due to her na.
ticiial enlightenment and progressive char
acter. 6a moan Arrangement Unsatisfactory.
In my last two annual messages J called the
attention of the Congress to the position we
occupied as one of th3 parties to a treaty or
agreement by which we became fointly bound
with England and Germany to so interfere with
the government and control of Samoa as in
effect to assume the management of its affaire.
On the 9th day of May, 169 t 1 transmitted to
the senate a special message with accompany
ing documents giving information on the sub
ject and emphasizing th opinion I have at all
times entertained that our situation on thi
matter was inconsistent- with the mission and
traditions of our government in violation of
the principles we profess aud in all its phases
mischievous and vexatious. I again press this
subject npoathe attention of Congress and ask
for mch legislative action or expression as will
lead the way to our relief from obligations both
irksome and unnatural.
The Cuban Rebellion.
Cuba is again gravely disturbed, an insurrec
tion in somo respect more active than the last
proceeding revolt, which continued from 1SC8
to 1878. novr exist in a large park of the East
ern interior of the island, menacing even some
population on the coast. Besides dangering
the commercial exchanges of th island, of
which our country takes the predominant
share, this flagrant condition of hostilities by a
rousing seatimenta 1 sympathy and inciting ad
venturous support among our people, has en
tailed earnest effort on the part of this govern
ment to enforce obedience to onr neutrality
laws and to prevent the territory of the Unite 1
States from bo ing abused at a vantage ground
?rom which to aid those in arm against Span
ish sovereignty Whatever may be the tradi
tional sympathy of our countrymen, a Indi
viduals with people who seem to be struggling
for larger autonomy and freater freedom
deepened as such sympathy naturally most bo
in behalf of our neighbor. Yet the plain duty
of their government is to observe in good faith
the recognized obligations of international re
lationship. The performance of this duty
should not be made more difficult by a disre
gard on part of our ci tizens f the obi igation
growing out of their allegiance to their coun
try which should restrain them from violating
a individual th neutrality which the nation
of whi;h they are members is bound to observe
ia its relations to friendly sovereign State.
Though neither the warmth of onr people's
ym pa thy with the Cuban insurgents nor onr
loss and material dimago consequent upon the
futile endeavor thus far made to restore peace
and order, nor any shock our humane sensibili
ties may hav receive 1 from the cruelties
. which appear to especially characterize thi
sanguinary and fiercely conducted war, have in
the least shaken the determination of the gov
ernment to honestly fulfill every international
obligation: yet, it is to be earnestly hoped, on
very grounds, that the devastation of armed
conflict may sp edily be stayed and order and
quiet restored to the distracted island, bring
ing in their, train the actibility and thrift of
peaceful pursuits.
The Turkish Trouble.
Occurrences in Turkey have continued to ex
site concern. The reported massacres of Chris
tian s in Armenia and the development there,
and in other districts, of the spirit of fanatio
host ility to Christian influences, naturally ex
lited apprehension for the safety of the devoted
men and women who, as dependent of the for
ign missionary societies in the United States,
and reside in Turkey under the guarantee of
taw and us.? and in thi legitimatj perfona
ttice of their educational and religious mission.
No efforts have been spared in their behalf and
their protection in person and property has
been earnestly and vigorously enforced by
vrery means within our power. I regret, how
ever, that au attempt on our part to obtain
better information concerning the true condi
tion of affairs in the disturbed quarter of the
Ottoman empire by sending - the United
States consul at Siuas to make investigation
nd report, was thwarted by the objection of
the Turkish government. ThU movement on
9ur part was in no sense meant as a gratuitous
ntanglement of the United States in the so
tailed Eastern question, nor as an officious in-
terferense with the right an 1 duty which be
long by treaty to certain great European
powers, calling for their intervention in polit
ical mattf rs affecting t ho good government and
religious freedom ot the' non-Mussulman tub
iectsof the Sultan, but it aros solely from oar
desire to have an accurate knowledge of the
tonditltions in our efforts to care for those en
titled to our protectton.
The presence of our naval vessel which are
ow in the vicinity of the disturbed localities
afford 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 onr countrymen
within reach of onr ships that might be found
Imperilled. The Ottoman government has
lately issued an imperial Irade exempting for
iver from taxation an Amerioan college for
rirls at Scutari. Repeated assurances have
also been obtained by our envoy at Constan
tinople that similar institutions maintained
nd administered by our countrymen shall be
secured in the enjoyment of all rights and that
9iir citizens throughout the empire shall be
orotected.
On the demand of our minister orders have
been issued by the Sultan that Turkish soldiers
lhall guard and es:ortto the coast American
refugees and those orders hav been carried
out. aud our latest intelligence gives assuranse
of the present personal safety of onr citizens
and missionaries. Though thus f ar no live of
American citizens have been sacrificed, there
tan be no doubt that serious loss and destruc
tion of mission property have re suite 1 from
riotous conflicts and outrageous attacks.
By treaty several of the most powerful
European powers have secure I a right and as
vumed a duty not only in behalf of their own
citizens and in furtherance of their owninter
9ta. but as agent of the Christian world.
Their right is to enforce such conduct of the
rurkiith government as will restrain fanatical
brutality, and in fact, their duty i to interfere
to as to insure against such dreadful occur
rences in Turkey as lately shocked civilization.
The powers declare this right and this duty to
be theirs alone, and it is earnestly hoped that
Elective action on their part will not be de
layed. OUR FINANCES.
A Subject of
the
the Greatest f mportaoo to
American People.
- As we turn from a review of
our foreign rela-
tiona to the contemplation of our national
financial situation wo are immediately aware
that we approach a subject of domestic con
:orn. more important than any other that can
ngage our attention, and one at present in
ruch a perplexing and delicate predicament as
to require prompt and wise treatment.
We may well be encouraged to earns st effort
in itm direction when we recall the steps
already taken toward improving onr economio
nd financid situation, and when to appreciate
how well tha way has been prepared for further
progress by an aroused and intelligent popular
interest in these subjects. By command of th
people, a customs revenue system, designed for
the protection and benofit of favored classes at
the expen e of the great majority of our coun
trymen and which, whi e inefficiont for the pur
pose of revenue, curtail -d our trade relations
vnd impeded our r ntr ne to the markets of
tho worlJ, has om supercede 1 by a
tariff policy w.iirh, in principle, is
based upon a denial of the rizht
of tho government to obstruct the avenues of
onr people's cheap living or lessen their com
fort and contentment, fo the sake of according
tpocial advantages to favorites, and which,
while encouraging our intercouree and trade
with other nations, recognize the fact that
American self-reliance, thrift aud entennity,
(tan build up our country's industries and de
velop its resources more surely than enervating
paternalism. The compulsory purchasi and
-oinage of silver b the government unchecked
and unregulated by busiress conditions and
heedless of our currency needs, which for more
than fifteen years dilute I our circulating med
ium, undermined conti dense abroad in our finan
cial ability andatlast culminated in distress and
panic at home has been recently stopped by the
repeal of the laws which forcod this reckless
tcbemo upon the country. The things thus ac
complished notwithstanding their extreme Im
portance and beneficient effects, fell far short
of curing the monetary evils from which we suf
fer as a result of long indulgence in ill advised
financial expedients. The currency denom
inated United States notes and commonly
known as green-backs was issued in large vol
ume;! during the late civil war and intended
originally to meet the emergencies of that
period. It will be seen by a reference to the
debates in congress at the t mo laws were
passed authorizing the issue of these note,
that their advocates declared they were in
tended for only temporay use and to meet th
emergency of war. la almost, if aot all, the
lawn relating to them, some provision was
made contemplating their voluntary or com
pulsory retirement. A large quantity of them,
however, were kept on foot and mingled with
tho currency of the country, so that at the
cloot of the year 1874 they amounted to $381,
999,078. Immediately aftir that date and in
January, 1975, a law was passed providing for
the resumotion of specie payment, by
which the S-r:ry , of the Treasnry
was required, whenever additional ciron-
latioav was lud to Natioaa)
co retire united States notes in equal amount
to 80 per cent of such additional National bank
circulation until such notes were reduced to
$300,000,000. This law further provides that on
and after the last day of January. 1879, the
United States notes then outstanding, should
be redeemed in coin, and in order to provide
and prepare for such redemption the secretary
of the treasury was authorized not only to- use
any surplus revenues of the government, but to
issue 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, 1478, and before the date thus ap
pointed for the redemption an 1 retirement of
the notes, another statute was passed for
tiidding thlr farther cancellation and retire
ment. Some of them had, however, been pre
viously redeemed and cancelled upon the issue
of additional national bank circulation, as per
mitted by the law of 1875. so that the amount
outstanding at the time of the passage of tha
net forbidding their farther retirement was
SSM31.018. The law of 1878 did not atop at dis
tinct prohibition but contained in addition
tho following provision, "And when any
of said note may be redeemed or
be received into the treasury under
any law, from any source whatever, and
hall belong to the United States, theyi hall not
be rs tired, cancelled, or destroyed, but they
shall be re-issued and paid out again and kept
in circulation. " This was th condition of af
fair an th 1st day of January, lS7tf, which had
been fixed upon four years before as the date
for entering upon the redemption and retire
ment of ail these notes, and for which such
abundant means had been provided The gov
ernment was put in the anomolou situation of
owing to thi holders of its notes, debts payable
in gold on demand which could neither be re
tired by receiving such notos in discharge of
obligations due the government, not cancelled by
actual payment in gold, it was forced to re
deem without redemption and to pay without
acquittance.
There has been issued and sold $04,509,000 of
the bonds author zed by the resumption act of
1575, the proceeds of which, together with other
gold in the treasury, create 1 a gold fund deemed
sufficient to meet the demands which might be
made upon it for the redemption of the out
standing United State notes. This fund, to
gether with sue i other gold as might be from
time tot im in tha treasury available for the
sa mo purpose, has been since railed our gold
reserve and $100 0X),0ih) has been regarded as an
adequato amount t accomplish its object.
This fund amounted on the 1st day of January
179, to $l4,l'.K,13j and though thereafter con
stantly fluctuating, it did not fall be'ow that
sum in July, 1892. In April, 1S93, for tho first
time since its establishment this reserve
amounted to less than 8lJ0,'J00,00O, containing
at that date only ?j7,011,33).
The Bond Contract
The message reviews at great length the low
ering of the g ld re4erve, the shipment of gold,
the issuing of bonds, the entering into the bond
contract with capitalists, and his messages to
Congress for relief. Continuing, the President
says:
The Congress having declined to grant the
necessary authority to secure this saving the
contract unmodified was carried out, resulting
in a gold reservo amounting to $107,17 1,k on
the 8th day of July, 159 . The performance of
this contract not only restored the reserve but
checked for a time the withdrawal of gold and
brought on a period of restored confidence and
Bach peace and quiet in business circles as
were ot the greatest possible value to every in
terest that affects oar people. I have never had
the slightest misgiving concerning the wisdom
or propriety of this arrangement, and am quit
willing to answer for my- full share of responsi- '
bility for its promotion.
I believe it averted a disaster, the imminence
of which is fortunately not at this time gener
ally under tood by our people. Though the
contract mentioned stayed for a time the tide
of gold withdrawal, it good result could not
be permanent. Recent withdrawals have re
duced the reserve from $107,57 1,240 on the th
day of July. 1885, to $79,333,9 & How long it
will remain large enough to render its increase
unnecessary is only matter of conjecture,
though quite large withdrawals for shipment
in the immediate future are predicted in well
informed quarter About $16,000,000 has
been withdrawn during the month of November.
The foregoing statement of events and condi
tions develop the fact that after increasing our
interest bearing bonded indebtedness more
than $195,000,000 to save our gold reserve, w
are nearly where we started, having now ia
mch reserve $79,333,9 0. as against $65,438,577, in
February 1894, when the first bonds were i$ued.
Though the amount of gold drawn from th
treasury appears to be very large, as gathered
from the faets and figures herein present it j
actually was much larger, considerable sums
having been acquired by the treasury within
the several periods stated without the issue of
bonds.
On the ?8th of January, 1993, it was reported
by the secretary of the treasury that more than i
$172,000,000 of gold had been withdrawn foi
hoarding or shipment during the year pro
ceeding. He now reports that from January 1,
1879, to July 14, 1890, a period of more than 10
years, only a little over $28,000,000 was with
drawn and that between July 11, 190. the date
ot the passage ot the law for an increased onr
chase of silver, and the first day of December,
189, or within less than five and a half years,
there was withdrawn nearly $375,000,000,
making ' .e total of more than $403,000,000
drawn from the treasury in gold since January
1st.. 1879, the date fixed in 1875 for the retire
ment of the United States notes.
N early $4X7,00 J, 000 of the gold thus withdrawn
have been aid out on these United States
notes, and yet every one of the $4S,0OJ,00O is
till uncancelled and ready to do service in fu
ture gold depletions. More than $7o,00 ,0X) in
gold has since thsir oreation in 18.0 been paid
out from the treasury upon the notes given on
the purchase of tilver by the government;
and yet the whole, amounting to $15,OOJ,000,
oxcept a little more than 16,0J,000 which have
been retired by exchanges for silver at the re
quest of the holders, remain outstanding and
prepared to join their older and more ex
perienced allies in future raids upon tho treas
ury's gold re -erve.
On July 1. 189i, mora than a year and a half
before tho first bonds were issued to replenish
the gold reserve, there was a net balance in the
treasury exclusive of such reserve of less
than $13,000,000, but the gold reserve
amounted to more than $11 ,000,000, which wa
the quieting feature of the situation. It was
when the stock of gold began rapidly to fall
that fright supervened an d our securities held
abroad were returned for sale and debts owed
abroad were pressed for payment. In the mean
time extensive shipment of gold and other un:
favorable indications oaused restlessness and
fright among our people at home.
Tho act of July 14, 18 JO, in a still bolder effort
increased tha amount of t ilver the Government
was compelled to purchase, and forced it to
become the buyer annually of ' OJO,000
ounces, or practically the entire pro
duct ot our mines. Under both laws
silver rapidly and steadily declined in value.
The prophecy and the expressed hope and ex
petation of those in the congress who led in
the passage of the last mentioned aot that it
would re-establish and maintain the former
parity between the two metals are still fresh in
onr memory. n
Retirement of Treasury Notes.
In other words, the government has paid In
gold more than nine-tenths of it United States
notes and still owes them all It has paid in
goll about one-half of its notes given for
ilver purchases without extinguishing by such
payment one dollar of these notes. And added
to all this we are . reminded that to carry on
ti astonishing financid system the govern
ment has incurred a bonded Indebtedness of
$95,500,000 in establishing a gold reserve and of
16X315,400 in effort to maintain it, that an an
nual interest charge of such bonded In
debtedness is more than $11,000,000, that
a continuance in our present course
may result In further bond issues,
and that we have suffered or are threatened
with all thi for th sake of supplying gold for
foreign shipment or facilitating its hoarding at
home, situation is exhibited which certainly
ought to arrest attention and provoke immedi
ate legislative relief I am convinced the only
thorough and practicable remedy for our trou
bles is found in the retirement and cancellation
vf our United States notes, commonly called
gieenback and the outstanding treasury not
Issued by the government in , payment of silver
porches dr th act of iSgO.
I believe this o ould be quite readily accom
plished by th exchange of these note for U. S.
bonds of small as well as large denominations
lew rate of interest. They should be
long term bonds, thus increasing their desir
ability as investments and becauso their pay
ment eould be well postponed to a period far
removed from present financial burdens and
perplexities when with insreased prosperity
nd resources they would be more easily met,
To further insure the cancellation of these
notes and also provile a way by which gold
maybe added to our currency in lieu of thorn,
feature in the plan should be an authority
given to the Secretary of t ie Treasu y
to dispose of the bonds abroad for gold if
necessary, to complete the contemplated re
demption and cancellation permitting him use
of the proceeds of such bonds to take up and
cancel any of the notes that may be in the
treasury or that may be received by the gov
ernment on any account. 'I he increase of our
bonded debt involved ia this plan would be
mply com pens at 3d by renewed activity and en
terprise in all business circles, the restored
lonfldence at home, the reinstated faith in our
monetary strength abroad, and the stimulation
of every interest and industry that
would follow the cancellation of the
Cold demand obligitions now afflicting us.
In any event the bonds proposed would stand
(or the extinguishment of a troublesome in
iebtedness, while in the path we now follow
there lurks the menace of unending bonds with
ur indebtedness still undischarged and aggra
vated in every feature. ' The obligation neces
tary to find this indebtedness would not equal
In amount those from whi? h we have been re
lieved since 1884 by anticipation and payment
beyond the requirements of the sink ing fund
ut of our surplus revenues. The currency
withdrawn by the retirement of the
United States notes and treasury notej
tmounting to probably less than $6,0'J0,000
night be supplied by such gold as would be
ssed on their retirement or by an increase in
'xregulation of our National banks. Though
the aggregate capital of these now in existence
tmouuta to mure than $6 "6.000,000, their out
standing circulation based on bond sesurity
tmounts to only about f KtO.000,000. They are
tutborized to issue notes amounting to ninety
er cent of the bonds deposited to secure their
irculation, but in no event beyond the amount
f tho ir capital stock they are obliged to pay
one peroent tax on the cirou ation they issue.
I think they ought to be allowed to issue cir
culation cjual to tho par value of the bonds
sheydepo-it to secure it, and that the tax on
'.heir circulation should le reduced to one
fourth of one rep cent, which would undoubt
Klly meet all the exienses tho government
would incur on their account. In addition
iiey should be allowed to substitute or deposit
xi lieu of tho bonds now required as security
'or their circulation thoe which would be is
med for the purpose of retlting the United
States notes and treasury notes. The banks
llroady existing, if they desired to avail them
selves w of the provisions of law
thus modified could issue circulation
'a addition to that already outstanding,
tmounting to $473,001. 000. which would nearly
rquit equal tho currency proposed to be
sancelled. At any rat, I thoul i confidently ex
oect to see th) existing national banks or
others to be organized avail themselves of the
oroposed encouragements to issue circulation
ind promptly fill any vacuum and supply every
lurrency neo d. It has always seemed to me
,hat the provisions of law regarding the cap
ital of national banks wh ch operate as a lim
'tation to their location fails to mace proper
iompensation for the suppres'ion of state
oanks, whLh came near to the p pie in all sec
tions of the country and readily furnished
hem with banking accommodations and
'acilities.
Whatever is attempted should be entered
ipon fully appreciating the fact that by care
less, easy descent, we have reached a dangerous
iepth and that our ascent will not be ac
jomplished without laborious toil and struggle.
We shall be wise if we realize that we are
inancially ill and that our restoration to
lealth may require heroic treatment.
Inasmuch as tho withdrawal of our gold has
-esultei largely from fright, there is nothing
ipparent that will prevent its continuance or
recurrence, with its natural 'consequences, ex
cept inch a change in our financial m thod as
will reassure the frtghtened and make the de
lire for gold less in ten -e It is not clear how
in increase in revenue, unless it be in gold and
tatisfactory to thosa whose only anxiety is to
rain gold from the governments store. It can
tot, therefore, be safe to rely upon increased
revenues as a cure for our present
iron Dies. It is possible that the suggestion of
ncreased revenue as a remedy for the difficul
ties we are considering may have originated in
in intimation or distinct allegation that tho
oonds which have been usuod ostensibly to
repl nish our gold reserve were really issued
to supply insufficient revenue. X othing can be
further from the truth. Bonds were issued to
obtain gold for tho maintenance ot our natioual
redit.
Free Silver.
While I have endeavored to make a plain
itatement of the disordered condition of our
currency and the present dangers menacing our
orosperity and to suggest a way which
eais to a safer financial system
C have constantly had in mind the fact that
nany of my countrymen, whose sincerity I do
aot doubt, inshst that the cure for t.io ills now
threatening us miybefouadin the single and
limple lemeily of the free coinage --f silver.
They contend that our miuts shall be at once
tfir wn open to t ie free and unlimited and
udepe dont coinuge of both gold and silver
dollars of full legal tender quality, regardless
of the action of any other government, and in
"ull view of the fact that the ratio between
.iie metals which they suggest calls for on
lundred cents worth of g Id in the gold dollar
it the present standard and only fifty cent in
ntrinsic worth of silver m the silvor dollar.
in the present sta ;e of our difficulty it is not
ay to understand bow the amount of vur rev
enue receipts affects it. The important ques
;ion is not the quantity of money received in
wvenue payments, but the kind of money we
maintain and our ability to continue in sound
financial condition. We are considering the
-love. nment holding of gold as related to the
touudness of our money and as affecting our na
tional credit and monetary strength. If our gold
re.-erve had never been impaired; if no bonds
lad ever boon issue 1 to replenish if there had
been no fear and timidity concerning our abil- 1
ty to continue gold payment; if any part ;
f our revenues were now paid in gold, 1
ind if we could look to our gold receipts as a
means of maintaining a safe reserve the j
amount of our revenu s would be an influential i
factor in the problem But unfortunately all
the circumstances that might lend weight to !
this consideration are entirely lacking. In our
oresent prodicament no gold is received by the j
rovernment in payment of revenue charges J
tor would there be if the revenues were in-
creased. The receipts of the treasury when not
n silver certificates, constat of United
States notes and treasury notes, issued
for silver purchases. These forms of money are
nly useful to the government in paying its
current ordinary expense aud its quantity
ui government possession do.'S uj? " '
contribute toward giving us that kind of safe
Snancial standing or condition which is built
on go d alone. It is said that these
aotes if held by the government can be used to
obtain gold for our resorve. The answer is
iasy The people draw gold from tho treasury
on demand upon Unite 1 States notes aad treas
ory notes, but the proposition that the treasury
can on demand draw gold from tho people upon
them would be regarded in these days with
wonder and amazement And even if this
could be done, there is nothing t prevent
thoo thus parting with thir gold from regain
ing it the next day or the next hour by the
presentation of tho notes they received in ex
change for it.
The pecrerarv of the treasury might use such
notes taken from a surplus loveuuo to buy
gold in the market. Of course, he could not do
this without paying a premium. Private hold
ers of gold, unlike the government having no
parity to maintain, would not be restrained
from making the best bargain possible when
they furnished gold to the treasary; 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
ant silver which the government is plbged to
maintain, and opening the way to new and
serious complications.
Ia the meantime tho premium would not re
main stationary and the absurd spectacle might
be presented of a dealer selling gold to the
Government and with United States note or
treasury notes in his hand imraodiately clam
oring for Its return and a re ale at a higher
premium. It may be claimed that a large rev
enne and reduced receipts might favorably af
feet the situation tinder dissuasion by affording
an opportunity affecting these net te
treasury when received, and thus PTenUng
Ssir presentation 'or gold. Such retention to
be useful ought to be at least measurably per
manent, and this is precisely what is prohib
ited so far as United States notes are con
cerned b law of J878, forbidding their rej
tlrement That the statute in so many words
provides that these note when men-- I uto
the treasury and belonging to the Unite., states
shall be "Paid out again and kept m circula
tion." It will moreover be readily seen that
the government could not refnso to pay out
United States notes and treasury notes in cur
rent transactions when demanded, and insist
on paying out silver alone and still maintain
the parity between that metal and the cur
rency representing gold. Besides the aocnmu
lation in the-treasury of currency of any kind
exacted from the people through taxation is
Justly regarded a an evil and it cannot pro
ceed far without vigorous protest sgainst sa
unjustifiable retention of money.
Were there infinitely stronger reasons than
can be adduced for hoping that such notion
would feure for us a bimetallic currency mov
ing on lines of psrity an experiment so novel
and hazardous a that proposed might well
stagger those who believe that stability is an
imperative condition of sound money. No gov
ernment, no bum i n contrivance or act of legis
lation huS ever been abls to hold the two metal
together in free coinage at a ratio appreciably
different from that which is established in th
markets of tho world.
In the light of these experiences, which ac
cord with the experiences of other nations,
there is certainly no secure ground for the be
lief that an act of Congress could now bridge
an eoualitv of 50 per cent between gold and sil
ver at onr present ratio, nor is there the least
possibility that our country, which has less
than one seventh of the silver money in the
world, could by its action raise not only our
own, but all silver, to its lost ratio with gold.
Our attempt to accomplish this by the free
coinage of silver at a ratio differing from the
actual relative value would be the signal for
complete departure of gold from our circula
tion, and the collapse of our entire credit sys
tem. ! Our country's indebtedness whether owing by
the government or existing between individuals,
has been contractad with reference to our pes-
ent standard To decree by act of Congress
, that these debts shall be payable in less valua
ble dollars than those within the contemplated
: and intention of the parties when contracted,
' would operate to transfer bv the fiat law and
! without compensation, an amount of property
! and a volume of rights and interests almost in-
calculable. Those who advocate a blind and
! headlong plunge to freo coinage in the name of
j bimetallism and professing the belief, con
J trary to all experience, that we could
: thus establish a double standard and a
' concurrent circulation of both metals in our
: coinage are certainly reckoning from a cloudy
1 standpoint. Our present standard of value is
J the standard of tho civilized world, and per
mits the only bi-metallism now possible or at
least that within the independent reach of any
single nation, however powerful that nation
may be. While the value of gold
as a standard is steadied by
almost universal commercial an I business it
does not despise silver nor seelc it banishment,
j Wherever this standard is maiut.i'ne 1 there is its
side in free and unquestioned circulation a vol
ume of silver currency sometimes equaling, and
sometimes even oxceediur it in amount, both
maintained at a parity notwithstanding a de
1 precation or fluctuation in the intrinsic value ot
' silver.
Ther is a vast difference between a standard
of value an i a currency for monetary use. The
' standard must n ?cessarily ba fixed and certain.
; The currency may be in diverse forms and of
various kinds. No silver standard country has
a gold currency in circulation but an enlight
ened and wise system of finance secures the
benefits of both gold and silver as cur:eney
and eirculai ing medium by keeping the stand-
i ard stable and all other currency at par with
it. Such h system and such a standard also
gives free scope tor the use and expansion ot
; safe and conservative credit so indispensible
to broad and growing commercial transactions
and bo well substituted for the actual use of
money.
The past is fnlt cf lessons, teaching not only
the economic dangers, but the national im
. morality that follows in the train of sr.ch ex
pedient. I will not. believe that the American
people can be persuaded, after sobe.- delibera
, tion. to jeopardize their nation's prestige and
! proud standing by encouraging financed nos
J trums, cor that they will yiekl tt the falso al
i lurements of cheap money, when they -ieiliz
j that it must result in the weakening of that
I flnancirl integrity and rectitude which thus far
' n our history has been so devotedly cherished
! as one of the traits of true Americanism,
j I have ventured to express myself on theso
J subjects with earnestness and plainness of
i speech because I cannot rid myself of the belief
that there lurks in the proposition for t he free
coinage of silver so strongly approved and
so enthusiastically advocate! by a multitude
or my cauntrymen a serious menace to our pros
perity and insidious temptation of our peopl
to wander from the allegiance thy owe to
1 public and private integrity. It is because I do
not distrust the good faith and . sincerity of
those who press this scheme that I have
imperfectly but with zeal sumbitted my
thoughts upon this moment us subject
I cannot resrain from begging them
to re-examine their views and beliefs in th
light of patriots, reason and fami iar experi
ence, and to weigh again and again the conse
quences of such legislation as their efforts hav
invited. Even the continued agitation of th
subject adds greatly to the difficulties of a
dangerous financial situation already foroed
' upon us.
i In conclusion I especially entreat the people's
: representatives in the Congress who ar
charged with the responsibility or inaugurat
ing measures for the safety and prosperity of
our common country to promptly and effec
tively consider the ills of our critical financial
plight. 1 have suggested a remedy which my
judgment approves I desire, to assure th
Congress that I am prepared to co-operate with
them in perfecting any other measures promis
ing thorough and practical relief and that I
will gladly labor with them in every patriotic
endeavor to further tho interests and guard th
welfare of our countrymen whom in our re
spective places of duty we have undertaken to
serve Ghoteb Cleveland.
It Seems Incredible.
Gazpin How old does a woman havs
to be before she can vote?
Hazbin Twentj-one, I believe.
Gazpin But usually she doesn't vota
nntil she's twice that age.
Ilazbin I know it. You see she has
to devote the intervening1 time to mak
ing; up her mind how to vote. Eoxbury
Gazette.
Heinous Offen.
Mrs. Figff Tommy put s bent pin
in the minister's chair when he was
calling; this afternoon.
Mr. Fiprj? Gimme your slipper.quick.
A boy who will plfcy suoh a trick on a
man who d arse n't swear needs one of
the best licking ths.t can be produced.
Indianapolis Journal.
Lids should always be put over sauce
pans when in use. The steam is usu
ally more beneficial to the dish being
prepared than to the kitchen walls.
In London the natural Increase of th
population, from excess of tlrthg over
deaths alone, is about 4,000 h month.
Most European nations average for
the male 5 feet 6 laches, but the Aus
trians, Spanish and Portuguese Just fall
short of this standard.
UnterTifled small boys in
Me., a few daya ago stole
markers from the cemetery
Portland,
the grav?
for use in
making bounds for hockey playine
. The cult known as Christian Science,
founded in Button in 1866 by Dr. Mary
Baker Eddy, now has 200 Incorporated
churches in the United States.
I-ast month was the moat prosperous
Ut the history of the Brooklyn postof
ilca. The eale. from ttampt, stamped
envelopes, stc. amounted to Wl.csxtS.