The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-02-17
MOVEMENT ON THE GOLD RESERVE
Decided Approval Of the In
flation Element.
VETO OF THE CHINESE BILL THREATENED.
The Mexican Minister'S Reception to the
Returned Excursionists
FROM OUR SPECIAL CORRESPONDENT.

+ WASHINGTON. Feb. 16. 1879.
IAN ATTACK ON THE GOLD REsERvR-PRoposI-
TIoN TO UTILIZE 1T IN THE PAYMENT or
ARREARS OF PENSIONS.
Mr.. Wood, as chairman Of the Ways and Means
Committee has proposed in the committee very
startling measure. which, it is said, finds enough
favor in the committee to make it dangerous. 1t
is nothing less than proposition to pay the arrears
OF pensions with the gold reserve of the Treasury.
Mr.. Woods bill sets forth that
Whereas the public debt has been extinguishcd
more rapidly than the law relating to the sinking
fund required; and whereas the Secretary OF the
Treasury estimates that. Sal 900 are needed to
pay the arrears of pensions required by law; and
whereas by suspending the operations OF the
sinking fund and applying all the present
penaions there will still be deficit OF SIT 500 900;
and whereas it is unwise to increase the bonded in
debtedness of the United States; and whereas the
Treasury has cash balance of =, now held
as . reserve required by the Resumption law.
which does not appear to DO needed to main
tain resumption; therefore.
Be it enacted. That the Secretary of the Treasury
be authorized and directed to use so much of said
may be necessary to complete the payment
OF said arrears OF pensions.
Mr.. Kelley and other greenbackers are greatly
elsted over this bill to-day. Mr.. Kelley says that
greenbacks money. that nobody wants coin,
that resumption Is safe without ccn and
SO on. and the ardent support Of the
whole body of greenbackers and inhatonists may be
counted on for this mischevous bill il it should ever
get out Of the committee. The friends Of sound
money see, Of course. that its passage would be
fatal to resumption Mr.. Wood defends his bill on
the general ground that he sense in keeping
large Of coin in the Treasury. which
body calls for and on which We are losing interest.
It was seen the Arrears Of Pensions bill
was passed that it was not unlikely to become tool
fOr ,nto ~ In, In nf tha ina cfc
These have for several years been trying to
large appropriations for extensive works Of internal
improvement with the main object Of carrying ON
these works by issues Of paper money.
In these schemes they have been defeated, but
the arrears Of pensions law gives them In another
shape. tho opportunity they have sought which is
to oblige the government to spend money greatly
beyond its income. and thus to enable them to pro-
pose new imitation. Mr.. Wood has come to
their aid In q manner which delights them
To pay out the gold accumulated in the
| Treasury o resumption fund is precisely
what the innationsts want. 1t destroys resumption
and plungcs tho country hack into the Old slough OF
irrcdeemable paper money. is tho opinion Of tho
ablest fnanciers here that the truo aud necessary
policy Of the Treasury Is TO 60 accumula. gold
and many persons believe that it would bt
| unwise and hazardous TO repeal the lcgs
tender act without considerable additions being
first made 70 the Trcasury's gold for resump
| ton. Certainly. any diminuton Of this fund OF
attack on it by such measures this would cause
| general alarm and would be fatal to resumption.
It has been the belief of Secretary Sherman that Il
| was best for the country and for the compile
| ton Of resumption that the Treasury should
DO the sole reservoir of gold and
that the banks should continue to redeem
their notes In legal tenders 1t Is we'll known that
many Of the ablest bankers In tho country have
luctanty acqucsced in this theory because they
saw and feared precisely such attacks the
Treasury reserve this Of Mr. Wood. II Mr.
Woods bill could pass both Houses over
veto, which is very improbable. the national
banks would probably the sdvisabillty OF
at once securing such share of the Treasury gold
the legal tenders in their possession would entit,
them to. and there would DO general and dsastrou,
scramble.
Fortunately. It Is not likely that such bill coult
pass the Senate at this session But such tsmpcrn,
with tho public credit must be expected here so ons
as the government Is allowed TO issue legal teudc
paper.
THE ANrI-CHINEsE BILL-RUMoRs OF A COMING
VETO.
There Is o rumor to-day that tho President will
veto the Anti Chinese BILL and the ground that TIN
bill proposes to break treaty with friendl,
nation without notice and without sufficient reason
because the needed delay to proceed formally ant
according to custom could work no appreciabe In
jury; and because senator Hamlin said the othc
dry in the Senate. there have already boon confer
ences between tho State Department and the Chimes
Ambassador with tho view Of rcmcdying the evil
complained of; and further. that this is being dom
under resolution adopted by the senate at tho Las
session requesting the President to begin nesotia
tons looking TO notifications Of the treaty will
China; also that summary violation Of tho treat,
such tho bill proposes would necdlessly ans
gravcly impcril the interests Of people IL
China. which very important. and might derang,
our trade with that country. which Is In Aour
ishing condition