Newspaper Page Text
THE MESSAGE.
A REVIEW OF THE COUNTRY'S
AFFAIRS BY MR. CLEVELAND.
The Financial Situation Discussed at
Length—Strongly Against Green¬
backs—Venezuelan Dispute Should
Be Submitted to Arbitration, Etc.
Washington, Dec. 3, 1S95.
Message to the Congress of the United
States:
The present assemblage of the legisla¬
tive branch of our government occurs at
a time when the interests of our people
and the needs of the country give es¬
pecial prominence to the condition of
our foreign relations and the exigencies
of our national finances. The reports of
the heads of the several administrative
departments of the government fully
and plainly exhibit what has been ac¬
complished within the score of their re¬
spective duties and present each recom¬
mendations for the betterment of our
country’s condition as patriotic and in¬
telligent labor and observation suggest.
1 therefore deem my executive duty
adequately performed at this time by
presenting to the congress the import¬
ant phases of our situation as related to
our intercourse with foreign nations,
and a statement of the financial prob¬
lem which confronts us, omitting, topics, ex¬
cept as they are related to these
any reference to department operations.
I earnestly invite however, not only
the careful consideration but the se¬
verely critical scruitny of the congress
and my fellow countrymen to the re¬
ports concerning these departmental
operations If justly and fairly exam¬
ined they will furnish proof of assidu¬
ous and painstaken care for the public
welfare, I press the recommendations
the contain upon the respectful attention
of those charged with the duty of leg¬
islation, because I believe their adop¬
tion would promote the peoples’ good.
By amendatory tariff legislation republic, in
recognizing January last, the Argentine large
the value of the mar¬
ket opened to the free importation of
its wools under our last tariff act, has
admitted certain products of the United
Btates to entry at reduced duties. It is
pleasing to note that the efforts we trade have
made to enlarge the exchanges of
on a sound basis of mutual benefit are
in this instance appreciated by the coun¬
try from which our woolen factories
draw their needful supply of raw ma¬
terial.
Argentine Boundary Dispute.
The missions boundary dispute be¬
tween the Argentine republic and Bra¬
zil, referred to the president of the
United States as arbitrator during the
term of my predecessor, and which was
submitted to me for determination, re¬
sulted in an award in favor of Brazil
npon the historical and documentary
evidence presented, thus ending a long
protected controversy and desirability again demon¬
strating tho wisdom and of
settling international boundary disputes
by recourse to progressing friendly arbitration. for revival Ne¬
gotiations of United are States Chilian a claims
the and
commission, whose work was abruptly
terminated last year by tho expiration
of the stipulated time within which
awards could be made.
The resumption of specie payments
by Chili is a step of great interest and
importanoe both in its direct conse¬
quences upon her own welfare anil as
evincing tho ascendancy of sound finan¬
cial principles in one of the most influ¬
ential of the South American republics.
The ClilnesisJapanese War.
The close of the momentous struggle
between China and Japan, while reliev¬
ing the diplomatic agents of this govern¬
ment from the delicate duty they un¬
dertook at the request of both countries,
of rendering such servico to the sub¬
jects of either belligerent with the
territorial limits of each other as
veloped our neutral position permitted, condition de¬
a domestic in
the Chinese empire, which has
caused much anxiety and called for
prompt and careful'attention. Either
ns a result of a weak control by the cen¬
tral government over the provincial ad¬
ministrations, foliowring a diminution
of traditional governmental authority
under the stress of an overwhelming
national disaster, or as a manifestation
upon good opportunity of the aversion
of the Chinese population to all foreign
ways and undertakings, there have oc¬
curred iu widely separated provinces of
China, serious outbreaks of the old fanat¬
ical spirit against foreigners, which,
unchecked by the local authorities, if
not actually connived at by them, have
resulted in mob attacks on foeign mis¬
sionary stations, causing mnch destruc¬
tion of property, and attended with per¬
sonal injuries as well as loss of life
Although but one American citizen
was reported to. have been actually
wounded, and although the destruction
of property may have fallen more heav¬
ily upon the missionaries of other na¬
tionalities than our own, it plainly be¬
hoved this government to take the'most
prompt and decided action to guard
against similar or perhaps more dread¬
ful calamities befalling the hundreds of
American mission stations which have
grown up throughout the interior of
China under the temperate rule of tol¬
eration, custom and imperial edict. The
demands of the United Statas and other
powers for the degradation aud punish¬
ment of the responsible officials of the
respective cities and provinces, who by
neglect or otherwise had permitted up¬
risings, and for the adoption of stern
measures for by the emperor's government
the foreigners, protection of the life aud prop¬
erty of were followed by the
disgrace and dismissal of certain provin¬
cial officials found derelict in duty and
the punishment by death of a number
of those adjudged guilty of actual par¬
ticipation in the outrages.
This government also insisted that a
special American commission should
visit the province where the first dis¬
turbances occurred for the purpose of
investigation. This latter commission,
found after mnch opposition, has gone
overland from Tien-Tsin, accompanied
by a suitable Chinese escort and by its
demonstration of the readiness and
ability of our government to protect its
citizens will act, it is believed, as a
most influential deterrent of any similar
outbreaks. The all energetic steps likely we have
tiius taken are the more to re¬
sult in future safety to our citizens in
China, because the imperial government
is, I am persuaded, entirely convinced
that we desire only the liberty and pro¬
tection of our own citizens and redress
for any wrongs they may have suffered,
and that we have no ulterior designs or
objects, political or otherwise. China
will not forget either our kindly service
to her citizens during her late war not
the further fact that, while furnishing
all the facilities at our command tc
further the negotiation of peace be¬
tween her and japan, we sought counsel. no ad¬
vantages and interposed no and
The governments of both China
Japan have, in special dispatches, trans¬ diplo¬
mitted through their respective
matic representatives expressed grateful in a
most pleasing manner their ap¬
preciation of our assistance to their citi¬
zens 'luring the unhappy struggle, and
of the value of cat aid iu paving the
way to their resumption of peaceful
relations
Our Relations With France.
The customary cordial relations be¬
tween this country and France have
been undisturbed, with the exception
that a full explanation of the treat¬
ment of John L Waller by the ex¬
traordinary military authorities of
France still remains to be given.
"Waller, formerly United States consul
at Tamatave, remained in Madagascar
after his term of office expired, and was
apparently successful in procuring bus¬
iness concessions from the Hovas of
greater or less value After the occu¬
pation of Tamatave and the declaration
of martial law by the French, he was
.arrested upon various charges, among
them that of communicating military
information to the enemies of France,
was tried and convicted by a military
tribunal and sentenced to 20 years’ im¬
prisonment Following the course just¬
ified by abundant precedents, of this France gov¬
ernment requested from that
the record of the precede of the French
tribunal which resulted in Waller’s
condemnation. This request has been
complied with to the extent of supply¬
ing a copy of the official record, from
which appear the constitution and or¬
ganization of the court, the charges as
formulated, and the general course and
result of the trial, and by which it is
shown that the accused was tried in
open court and was defended by coun¬
sel.
But the evidence adduced in support of
the charges, which was not received by
the French minister for foreign affairs
till the first week iu October—has thus
far been witnessed, the French govern¬
ment taking the ground ourjdemand that its would produc¬
tion in response to es¬
tablish a bad precedent. The efforts of
our ambassador to procure it, however,
thongh impeded by recent changes in the
French ministry, have not been relaxed,
and it is confidently expected that some
satisfactory solution of the matter will
shortly be reached.
Meanwhilj it appears that Waller’s con¬
finement has every alleviation which the
state of his health and all the other cir¬
cumstance* of the case demand or permit.
In agreeable contrast to the difference
above noted respecting a matter of com¬
mon concern where nothing is sought ex¬
cept such a mutually satisfactory out
coma as the true merits of the case
require, is the recent resolution of the
French chambers favoring the conclusion
of a permanent treaty of arbitration be¬
tween the. two countries.
An invitation has been extended by of
France to the government and people
the United States to participate Paris in a in great 1900
international commemoration exposition at of the close
as a suitable
this, the world’s marvellous century of
progress. I heartily recommend its ac¬
ceptance, together with such legislation due
as will adequately provide for a and rep¬ its
resentation of this government
people on this occasion.
Relations With Germany.
Our relations with the states of the Ger¬
man empire are. in some aspects, tyoical found
of a condition of things elsewhere
in countries whose productions and trade
are similar to our own. The close rival¬
ries of competing industries; the influence
of the delusive doctrine that the internal
development of a nation is promoted and
its wealth increased by a policy which in
undertaking to reserve its home markets
for the exclusive use of its own producers
necessarily obstructs their sales in foreign
markets and prevents free access to the
products of the world; the desire to
retain trade in time-worn ruts, regardless
of the inexorable laws of new needs and
changed condition of demand and supply, invit¬
and our own halting tardiness in
ing a freer exchange of commodities and
by this means imperiling our footing in
the external markets naturally somewhat open in¬ to
us. have created a situation
jurious to American exports interests, not
only in Germany, where they are perhaps
most noticeable, but in adjacent countries.
The exports affected are largely Ameri¬
can cattle and other food products, the
reason assigned for unfavorable dis
crimination being that their con
sumption is deleterious to the pub¬
lic health. This is all the more irri¬
tating in view of the fact that no Euro¬
pean state is as jealous of the excellence
and wholesomeness of its exported food
supplies of the United States, nor so easi¬
ly able, on account of inherent soundness
to guarantee those forgotten qualities. that interna¬
It is not to be
tional trade can not be onesided. Its cur¬
rents are alternating and its movements
should be honestly reciprocal. Without
this it almost necessarily degenerates contriv¬ into
a device to gain advantage on a
ance to secure benefits with only the sem¬
blance of a return.
These considerations should not, how¬
ever, constrain us to submit to unfair dis¬
crimination nor to silently acquiesce in
vexatious hindrances to the enjoyment of
our share of the legitimate advantages
of proper trade relations. If an examina¬
tion of the situation suggests such meas¬
ures on our part as would involve restric¬
tions similar to those from which we suf¬
fer, the way to such a course is easy.
It should, however, by no the means
be lightly entered upon, since ne¬
cessity for the inauguration regretted of the such a
policy would be by best
sentiment of our people, and because it
naturally and logically might lead to con¬
sequences of the gravest character.
Relations With Great Britain.
Our relations with Great Britain, always
intimate and important, have demanded
during the past year even a greater share
of considerotion than is usu d.
Several vexatious questions were left
undetermined by the decision of the Ber
ing principles sea tribunal. laid down The by application that august of body the
has not been followed by the results they
were intended to accomplish, either be¬
cause their execution has been more or
less imperfect. Much correspondence has
been exchanged between the two govern
ments on tlie subject of preventing
the exterminating slaughter of seals.
The insufficiency of the British patrol
of Behring sea, under the regulations
agreed on by the two governments, has
been pointed out, and yet only two British
ships have been on police duty during this
season in those waters.
The need of a more effective enforce¬
ment of existing regulations, as well as
the adoption of such additional regula¬
tions as experience has shown to be ab¬
solutely necessary to carry out the iutent
or the award, have been earnestly urged
upon the British government, but thus
far without effective results. In the mean¬
time the depletion of the seal herds by
means of palagic hunting has so alarming¬
ly progressed that unless their slaughter is
once effectively checked, their extinc¬
within a few years seems to be a mat¬
ter of absolute certainty. which the Uni¬
The understanding by
States was to pay, and Great Britain
receive, a lump sum of $4.5,000 in full
Settlement of all British claims for dama¬
arising from our seizure of British
vessels unauthorized under the
of the Paris tribunal of arbitration.,
was not confirmed by the last congress,
declined to make the necessary ap
propriation. I am still of the opinion that
arrangement was a judicious and
advantageous one for the government,
I earnestly recommend that it be
considered and sanctioned. If, how
ever, this does not meet with the favor of
congress, it certainly will hardly dissent
and good faith to provide for the speedy
adjustment of these claims by arbitration
as the onlv other alternative heretofore'been A treaty of
arbitration has agreed
unon and will be immediately laid before
the sugSd senate ’final «o that in one of the modes “each
°The settlement may be
ed commissioners boundary appointed to mark
the international in Passama
ouoddv hav according to a treaty ' have
not vet fully agreed.
The Alaskan Boundary.
Tbe completion of the preliminary sur- fob
vey of the Alaskan boundary which
lows the contour of the coast from the
southernmost point of Prince of Wales
island until it strikes the one hundred
and forty-first meridian at or near the
summit of Mount St. Elias awaits further
necessary anpropriation, which is ur
gently recommended. This survey was
undertaken under the provisions of the
convention entered into by this country
and Great Britain July 22, 1892, and the
supplementary convention of February
3 is94.
As to the remaining section of the Alas
kail boundary, which follows the one
hundred and forty-first msriftian north
warilly from Mount St. Elias to the frozen
ocean the settlement of which involves
the physicil location of the meridian men
tioned. unconventional agreement has yet
been made. The ascertainment of a given
meridian at much a particular time and careful point is observa- a work
requiring and Such observations and
tions surveys.
surveys were undertaken by the
States coast and geodetic survey in 1890
and 1892, while similar work in the same
quarters under British auspices are
lieved to give nearly coincident result, but
these surveys have been independently
conducted and no international agreement
to mark those or any other parts of the
hundred and forty-first meridian by per
manent monuments has yet been made,
In the meantime the valley of the
is becoming a highway through Alaska, the hith- and
erto unexplored wilds of
abundant mineral wealth has been dis
covered in that region especially at or
near the junction of the boundary raerid
ian with ___________________ the Yukon and its ___ tributaries. ____________
In these circumstances it is expedient in
deed, imperative, that the jurisdictional
limits XI 111 1 IS of Ul the lilt? respective ICSIICI/11VC governments ^uvctiiiurmo in ha
this this new new region region be be speedily speedily determined. determined
Her Britannic majesty’s government has
proposed a joint delimitation of the one
hundred and forty-first meridian by an of
international commission of experts
which, if congress will authorize it and
name due provision thereof, can be ac
complished with no unreasonable delay.
It is impossible to overlook the vital irn
portance of continuing the work already
entered upon, and supplementing it by
further effective measures looking to the
exact location of this entire boundary
The United States and Canada.
I call attention to the unsatisfactory de
linitation of the respective jurisdictions
of the United States and the Dominion
of Canada in the great lakes at the ap¬
proaches to the narrow waters that
connect them, The waters in ques
tion are frequented by fishermen of
both nationalities and their nets are
there used, Owing to the uncer
tainty and ignorance as to the true
boundary, vexatious disputes aud injuri¬
ous seizures of boats aud nets by Cana¬
dian cruisers often occur, while any accepted posi¬
tive settlement thereof by an
standard is not easily to be reached. A
joint commission to determine the line in
those quarters, on a practical marks basis, by
measured courses filling which range immediate on
shore in a necessity for
provision should lie made. It being ap¬
parent that the boundary dispute between
Great Britain and the republic of Ven¬
ezuela concerning the limits of British
Guinea was approaching of the an interest acute stage, aud
a definite statement
policy of the United States as regards the
controversy seemed to be required both
on its own account and in view of its re¬
lation with the friendly powers directly
concerned.
The Venezuelan Dispute.
In July last, therefore, a dispatch London was
addressed to our ambassador at
for communication to the British govern¬
ment, in which the attitude of the United
States was fully and distinctly set forth.
The general conclusions therein reached
and formulated are in substauce that the
traditional anfl established policy of this
government is firmly opposed to a forcible
increase by any European power of its ter¬
ritorial possessions on this continent, that
this policy is as well founded in principle
as it is strongly tEat supported by numerous the
precedents; United States is bound as a consequence against
to protest
the enlargement of the area of British
Guinena in deregation of the rights and
against the will of Venezuela; that consid¬
ering the disparity as in strength of Great
Britain and Venezuela, the territorial dis¬
pute between them can be reasonably set-
Lied only by friendly and impartial arbi¬
tration, and that the resort to such arbi¬
tration should include the whole contro¬
versy, and is not satisfied if one of the
powers concerned is permitted to draw an
arbitrary line through the territory in de¬
bate, 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 in question for called definite upon the
British government a answer
to the question whether it would or would
not submit the territorial controversy be¬
tween itself and Venezuela in it-s entirety
to impartial arbitration. The answer of
the British government has not been re¬
ceived, but is expected shortly, when fur¬
ther communication on the subject will
probably be made to the congress.
The Hawaiian Revolution.
Early in January last, an uprising
against the government of Hawaii was
nromptly suppressed. Martial law ivas
forthwith proclaimed, and numerous ar
rests were made of persons suspected of
being in sympathy with the royalist party,
Among these were several citizens of the
United States, who were either convicted
bv a military court and sentenced to
death, imprisonment, or fine, or were de
ported without trial. The United States,
while denying protection to such as had
taken the Hawaiian oath of allegiance, in
sisted that martial law, though altering
the forms of justice, demanded could not supersede of
iustice itself, and had stay been execu
tion until the proceedings and knowledge sub
micteil to this government
obtained therefrom that our citizens had
received fair trial.
The death sentences remitted were subsequently condition
committed or were on
of leaving the islands. The cises of cer
tain Americans arrested and expelled by
arbitrary order without formal charge or
trial have had attention, and in some in
stances has been found to justify remon
strance and a claim for indemnity, whWh
is not thus far conceded. Mr. Thurston,
the Hawaun minister, having furnished
this government with abundant reason
for asking that he be recalled, that course
was beeu pursued received. and his successor has lately
The Struggling Cubans.
Cub, Is again grave* bad A „
Insurrection, in some respects, more active
than the last preceding revolt, which
continued from 1868 to 1878, now exists In
a large part of the eastern interior of the
island, menacing even some populations
on the coast. Besides deranging island^of the com
mercial exchanges of the which
our country takes the predominant share.
this flagrant condition of hostilities, by
arousing ing adventurous emotional sympathy and :ncit
people, hasentailed support amoung our
earnest effort on the
part of this government to enforce ohedt
ence to our neutrality laws and to prevent
the territory of the United States from
being abused as a vantage ground from
which to aid those in arms against Span
ish soverignty, whatever maybe the
traditional sympathy of our country
men, as individuals, with a people
who seem to be struggling for lar
ger autonomy. Greater freedom de
pend as such sympathy, naturally must
be in behalf of our neighbors, yet the
plain duty of their government is to ob
serve in good faith the recognized obliga
tions of international relationship. The
performance of this duty should not be
made more difficult by a disregard on the
part of our citizens of the obligations
growing out of their allegiance to
their country, which should restrain
them from violating, as individuals,
the neutrality which the nation of
which they are members is bound
t° observe in its relations of friend
the sovereign of states. Though neither
warmth our people’s sympathy with
the Cuban insurgents, nor our loss and
material damage consequent upon the
futile endeavors thus far made to restore
peace and order, nor any shock our human
sensibilities may have received from the
cruelties which appear to especially char
actense this sanguinary and finely con
ducted war, have in the least shaken the
determination of the government to hon
estly fulfill every international obligation,
et m t0 be earnestly hoped, on every
ground, that , the devastation of armed
conflict may speedily be stayed and order
and quiet restored to the distracted island,
bringing in the train of activity and thrift
of peaceful pursuits.
One notable instance of interference by
Spain with passing American ships has oc
curred. On March 8 last, the Alliance,
wb ? bound from Colon ------ to New ~ York ‘ ’
, following „ .. the customary "track for
aua
vessels near e Cuban shore, but outside
J, 3e tbree mile ., limit, was fired upon by a I
Spanish gunboat. Protest was promptly
made by the United States against this
act as not being justified by a state of war,
nor permissible m respect of vessels on the
u ? ual paths of commerce, nor tolerable in
view of the wanton peril occasioned to in
uocent life and property. T he act was dis
avowed, with full expressiou of regret, and
assurance of non-recurrence of such just
pause of complaint, while the offend
mg officer was relieved of his command.
The Trouble In Turkey.
Occurrences in Turkey have continued
to excite concern. The reported massacres
of Christians in Armenia and the develop¬
ment there and in otlief districts of a spirit
of fanatic hostility to Christian influences
naturally of the excited apprehension for the
safety devoted men and women
who, as dependents of the foreign mission¬
ary societies iu the United States, reside
in Turkey under the guarantee of law and
usage and in the legitimate performance
of their educational and religious mission.
No efforts have been spared in their behalf,
and their protection in person and prop¬
erty has been earnestly and vigorously en¬
forced by every means within our power.
I regret, however, that an attempt on
our part to obtaiii better information con¬
cerning the true condition of affairs in the
disturbed quarter of the Ottoman empire,
by sending thither the United States con¬
sul at Sivas to make investigation and re¬
port, was thwarted by fhe objections of
the Turkish government. 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, calling
for their intervention in political matters
affecting the good government and reli¬
gious freedom of the non-Mussulman
subjects of the sultan, but it arose solely
from our desire to have an accurate
knowledge of the condition in our efforts
to care for those entitled to our protec¬
tion.
The presence of our naval vessels which
are now in the vicinity of the disturbed
localities affords opportunities to acquire
a measure of familiarity with, the condi¬
tion of affairs, and will enable us to take
suitable steps for the protection of any
interests of our countrymen within reach
of our ships that might be fouud imper¬
iled
Though thus been far no lives of American
citizens have sacrificed, there can be
no doubt that serious loss and destruction
of mission property have resulted from
riotous conflicts and outrageous attacks.
The Financial Situation Reviewed.
relations tional financial to thecontempUttoi situation crt'c/u^L 81 it *
ateiy that we are imme "
aware we approach a sub ,
domestic concern more important th.
any other that can engage our attention
and one at present m such a perplexing
** “
effort in
steps already token toward improving whin our
economic and financial situation and
we appreciate how well the wav has he™
prepared for further progress by ™
ttr e a »b‘5 d cS“' 1 “ ! “ t p “ p “'"
,
By coming of the people a customs rev
ancl enue benefit system designed for the protection
of favored classes at the ex
pense Oi the great mass of our eountrv
men alK * which, while inefficient for the
P nr P° SB of revenue, curtailed our
traas relations and impeded our
entrance to the markets of the world
bas b ® en superseded by a tariff poli c J
winch . , principle based
m ;s upon a denial
of the right, of the government to obstruct
e av 'onues to our people cheap living or
lessen , their comfort and contentment,
tne sake.of according especial advantages for
to favorites and which while encourag
mg our intercourse and trade with other
nations, recognizes the tact that Ameri
van sell reliance, thrift and ingenuity can
build up our country s industries aud de
v el°p lts resources more surely than en
ervalmg paternalism. T he compulsory
purchase and coinage of silver by the gov
eminent, unchecked and unregulated by
business conditions and heedless of our
currency needs, which for more than 15
I’ ears diluted our circulating medium,
undermined confidence abroad in our
financial ability and at last culminated in
distressBand panic at home, has been re¬
cently stopped this by the repeal of the laws
which forced reckless scheme upon
,, roua trv
the things thus accomplished, „ ... notwith
standing their extreme importance and
beneficient effects fall far short of curing
«ie monetary evils from whica we suffer
visedTnandal UniU exfedYente^^The nnSsSS l'!'* 4 '
Slat.,
mouly known as greenbacks was issued in
large volume during the late civil war,
and was intended originally to meet the
exigencies of that period It will be seen
by a reference to the debates m congress
at ing the the time issue the of laws these were passed autfioriz
notes that their ad
vocates declared they were intended for
Senc^oTwar gency of war. ^1^1^^!^ In almost it not all the
l aw s relating to them, some provision was
ma ^ e contemplating their voluntary or
compulsory retirement. A large quan
tity of them, however, were kept, on foot
aIul mingled with the currency of the
country, so that at the close of the year
187 ?. tbe 7 a ^ ou A- e< r 1m
mediately after that date, and m January
187o, a la,w was passed providing for the
resumption of specie payments, by which,
the secretary of the treasury was required,
whenever additional circulation \vas is
sued to national banks, to retire United
States notes equal m amount to 80 per
cent of such additional national bank cir
cu la tion until such notes were reduced to
$300,000,000.
This law further provided that on anil
after Jan. 1, 18<J, 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 despose of them for coin and to use
the proceeds for the purposes eontetnp
lated by the statues. before the date thus
In May, 1876, and
appointed for redemption and retirement
of these notes, another statute was passed and
forbidding their further cancellation
retirement. Some of them had, cancelled however,
been previously redeemed and
upon the issue of additional national bank
circulation, as permitted by the law of
1875, so that the amount outstanding at
the time of the passage of the act forbid¬
ding their further retirement was $346,-
681,016.
The law of 1878 did not stop at distant
prohibition, but contained, in addition,
the following express provision: be
“And when any of said notes may re¬
deemed or be received into the treasury,
under any law, from any source whatever,
and shall belong to the United States,
they shall not be retired, cancelled or de¬
stroyed but they shall be reissued and
paid out again and kept in circulation.”
The government was put in the anom¬
alous situation of owing to the holders of
its notes, debts payable in gold on demand
which could neither be retired by receiv¬
ing such notes in discharge of cancelled obligations by
due the government, nor
actual payments in gold, it was forced to
redeem without redemption and to pay
without acquittance. $95,500,
There had been issued and sold
000 of tax bonds authorized by the resump¬
tion act of 1875, the proceeds of which, to¬
gether 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 of the out¬
standing United States notes. This fund,
together with such other gold as might be
from time to time in the treasury avail¬
able for the same purpose, has been since
called our goid reserve, and $100,000,009 amount
has been regarded as an adequate This fund
to accomplish its object. $114,193,360,
amounted on Jan. 1, 1878, to fluctu¬
and though thereafter constantly until
ating, it did not fall below that sum first
July, 1892. In April. 1893, for the
time since its establishment, this reserve
amounted to less than $1(10,000,000, con¬
taining at that date only $97,011,230. Ae
In the meantime, and in
month of July. 1890, an act had bees
passed directing larger governmental, than had been
monthly purchases of silver laws, and pro¬
required viding that under previous for such silver
in payment should
treasury notes of the United States
be issued payable on demand in gold or
silver coin at the discretion of the secre¬
tary of the treasury. It was, however,
declared in the act to be “the established
policy of the Uuited States to maintain tnc
two metals on a parity with each other
upon the present legal ratio, or such ratio
as may be provided by law.” In view ot
this declaration it was not deemed permis¬ to
sible for the secretary of the treasury
exercise the discretion in terms conferred
on him, by refusing to pay gold on these
when demanded, because by such discrim¬
ination in favor of the gold dollar the so
called parity of the two metals would w
destroyed, and grave and dangerous con¬
sequences would be precipitated the constantly by affirm¬ ® a "
ing or accentuating their actual value
ing disparity the between ratio.
under existing note
It thus resulted that the treasury
issued in payment of silver necessarily purchases treat u
der the law of 1890 were option of t
as gold obligations, at the
holder. These notes on tne n
day of November, 1893, when t
law compelling the month P ,
purchase of silver was repealed amount
to than $155,900,000. The notes oi
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