The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-09-16

years agoT In 1881, Republican 0ecresary Oh
the Treasury called and paid 1921 900 900 of gov
eminent bonds; in 1882, $173, 600, 600; in 1883,
CSC 600 O00 and in 1894, over $40, 000 600, where
as in the first sixteen months OF President
Cleveiand's administration only SOC, l33, OOO OF
the public debt was paid The average payment
for the last four years by Republican Secretaries
of the Treasury, was $l53, 900, 900 every sixteen
months as against S5S, 600, 600 paid in the same
time By Secretary Manning. The Treasury state
msnh shows that on July l. 1886, the total cash
in the Treasury was $492, OF, Ia or nearly
800, 900. 900 more than the amount assumed
by Mr.. Hendricks TO be in the Treasury in Sep
tsmber, 1884 The form of the monthly Treas
ury statement was changed by Mr. Jordan, and
ccmparison with she former statements cannot
DO made without understanding two or three
things. In the new form of statement the frac-
tiOnal silver, now nearly $50, 000, 900, is not
counted as formerly, as part OF the available
cash on hand, and the daily interest upon the
whole debt is charged up each day against the
cash on hand which was not done before. 1t
must also be remembered that the surplus is to
b ascertained by first deducting all funds held for
specific uses. The Morrison resolution
pressly recognized that. In addition to the other
large held for such uses 800, OO0, 900 Was TO
DO held as a redemption fund for the green
backs. Now upon this basis the surplus in the
Treasury available for the payment OF bonds
was, on Dec l, 1884-the first statement after
MIR. Cleveland's election-$l0, 900, 600. Not de-
string to embarrass the incoming administration,
the surplus was allowed oy President Arthur to
increase. and when Mr.. Cleveland was inaug
nrated had reached 800 0O00 00 But this
surplus was not thought by Secretary Man
ming to be enough Bond calls were
suspended until December, 1885, when call for
0G0 payable in February. 1886, was
made At that time the surplus in the Treasury
bad increased to $50. 100000. and on Aug. last
this enormous surplus was still maintained-the
bond calls made not being sufficient TO make any
lHroad upon it. Mr.. Warner, of Ohio. Demo
srat said in the House that from March 81, 1885,
to June 30 1886, the surplus in the Treasury had
been increased nearly $62, 0O0,000. My Demo
cratic friends when you voted in November,
1884, want of confidence in the Republican
party upon this question, there was surplus of
$40, 900, 900 in the Treasury. You are now asked
70 give vote of confidence to Mr.. Cleveland,
who is obstinately holding surplus of $50, 0OO.-
600. Do your platform makers carry your con-
sciencesQ
This policy of boarding was accepted by the
Democrats in Congress the settled policy of the
administration. So slow to pay out the Treas
Ury surplus, so greedy to hoard SO fearful or the
silver coinage act, was the Secretary that an at
tempt was made by Democratic leaders in the
house to take from him that discretion which
Democratic House had never attempted to deny
20 Republican Secretaries. On the 14th day of
Saly, 1886, the following resolution. introduced
by Mr.. Morrison, of Illinois, passed the House
of Representatives
Resolved etc, That whenever the surplus or bal
in the Treasury. including amount held for
demption of United States notes shall exceed thesum
OF 800 O0OO 600 it shall be- and is hereby made the
duty of the Secretary of the Treasury to apply such
not less than ten millions per month,
during the existence of any such surplus to
the payment of the bearing Indebtedness of
the United States, payable at the option of the gov
ernment.
The surplus or balance herein referred to shall be
the available surplus ascertaned according to the
form Of statement of the United States Treasurer of
the assets and liabilities of the Treasury of the
United States employed on June 30, 1886.
e
President Cleveland's administration in its most
distinct and prominent policy. 1t said We can
not trust you with the discretion we have safely
confded to Republican administrations; must
put the constraint of law upon you, and leave
you no discretion. When this resolution came
10 the Senate, Mr. Farchild. acting Secretary
of the Treasury, in the absence of Secretary
Manning, was called before the committee
finance of the Senate to give his views upon it.
BE said:
Congress has always heretofore permitted the Sec
rotary OF the Treasury to decide at what times and
for what amounts bond calls should be made. x X
II has been leto the discretion of the Secretary of
the Treasury he being always the watch and in
position daily to get information to guide him in the
exercise of this discretion am not thst this
custom has been harmful to the country under former
administrations some mistakes may have been made,
but on the whole the country has been benefited OF
the exercise of this discretion under this admnistra
nyefer not tn sneak < It's onlv effect AS to
him [the Secretary is to take from him discretion
which has always been mis-; hence the fundamental
idea of this resolution far the Secretary of the
Treasury is concerned is that his Judgment is not
considered worthy of trust
The committee on finance of the Senate
amended the resolution so as to allow the Secre
tary of the Treasury, if he thought it necessary,
to keep on hand aworking balance of $40, 900 900,
in addition to the $780, 000 900 referred to in the
resolution, and to allow him a discretion in an
extraordinary emergency. not now existing, to
suspend the bond calls, reporting his reasons
therefor at once TO Congress The resolution, as
finally adopted by both houses was as follows:
Resolved by the Senate and House of Representa-
lives ETC., That whenever the surplus balance in
She Treasury, including amount held for redemption
Of United States notes, shall exceed the sum of
100000 900, it shall be- and is hereby made, the
duty of the Secretary of the Treasury to apply such
in not less than ten millions per month
during the existence of any such surplus or excess
5 to the payment of the interest bearing indebtedness
of the United States payable at the option of the
government. The surplus or balance herein re-
ferred to shall be the available surplus ascertaned
according to the form of statement of the United
States Treasurer of the assets and liabilities of the
Treasury of the United States employed on june 30
1886: Provided. That no call shall be made under
the provisions of this resolution until equal to
the call is In the Treasury and above the re-
serve herein mentioned: And provided further
That the Secretary of the Treasury his discretion
nay have in the Treasury and above the forego
ing sums, working balance not exceeding $40
10000; and whenever, in the of any extra
ordinary emergency not now existing, anc when: be-
thereof in the opinion of the Secretary of the
Treasury. the public interests shall require it, he
may by written order postpone the further call for
the payment of such Indebtedness for such period of
time as shall be necessary to maintain the public
credit unmpared; and that such postponement and
the therefor shall be reported to Congress
within ten days after its next meeting, immediately
If Congress shall be in session.
In tho House more than two thirds voted in
favor of the resolution as amended. It went to
the President for his approval on the 4th day of
August 1886. His attention had already been
called to the discussion upon the resolution, and
he had ample time to have returned it if he had
been so minded. Since the adjournment of
Congress he has filed with the Secretary of State
his objections to the resolution in the following
words:
This resolution involves so much, and is of such
serious import thai do not deem it best to discuss it
1t this time. 1t is not approved because do not be.
ieve it to be necessary, and because am by
onvinced that its mere passage and approval at this