The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-07-15
PAYING OUT THE SURPLUS.
The House Votes that All Surplus in the
Treasury, Except $10O,00O,0O0,
Shall be Used in Extinguishing the Interest
Bearing Debt--A Very Instructive and
Interesting Financial Debate.

WASHINGTON, July l4.-Bills were passed in
creasing to $3.50. 600 the limit of cost of the
public building at Galveston, and appropriating
500, 600 for public building ct Oshkosh, Wis
The House then went into committee OF the
whole for consideration of the surplus resolution
Dir. Morrison, of Illinois, offered the following
amendment.
The surplus or balance herein referred to shall be
the available surplus, ascertaned according to the
form of the statement of the United States Treas
OF the and liabilities of the Treasury OF
the United States, employed June 80, 1856
Mr. Hewitt, of New York, then took the floor
in opposition to tie resolution. The resolution.
he said, provided that whenever the surplus
exceeded 300 900, 600. calls for bonds should be
made. The result would be that il there was a
S101, 900 900 surplus, call must be made, and
thus the reserve would be reduced to SOL 000,-
000 If the gentleman from Illinois did not
intend'to do that, he had better modify the Ian
guage of the resolution so as to provide that
when the surplus reached $40, 600, 900,
there should be a call The gen
tleman from Illinois based his advocacy of
the resolution on the saving of interest. As
Stunning that SIS 600 600 was the amount which
would have to be paid out. the saving in inter-
est would be about 81 250. 000 The gentleman
said it would release from the Treasury 800,
O00, 600, which would go into the channels OF
trade give employment to lO0, 600 men, and sup
port 800 600 people. The gentleman was too
familiar with the principles which govern bust
De0s not to know that if this act should impair
public confidence, the saving OF two and
quarter millions would be of saving at
the spigot and wasting it at the bunghole. In
stead of giving employment to 900 men,
100, 900 men would be dismissed from employ
ment on the very first day that the public real
ICED shat under the action OF this resolution the
stability OF the Treasury was impaired. and its
ability to meet its obligations was undermined.
Such consideration as the saving of 81, 250, 900
was trifing in comparison with the danger and
disturbance which would result IL the financial
transactions of the government were Sc.
FSOusy IMPAIRED By ha the operation Of
mistaken in supposing that the release
of this money from the Treasury would put a
single man to work There were, to-day. idle in
New York more than 600 unemployed
capital If that capital could be made profitable
it would be employed. II this $40, O00, 900 came
from the Treasury. it would not be given to men
who were short of means. 1t would be paid to
the bondholders, who would simply pocket the
proceeds In market already Astounding with
papital and rot single human being would be
employed by reason of the change. He did not
consider that the action of the committee on
ways and means and the committee on rules was
q declaration of war against the administration.
II the reSOlutlOu suOulu % auoptou, however, Ho
should regard IL as vote of want of confidence
in the policy Of the administration. The Demo
cratic party believed in honest money, and the
President of the United States, when he accept
ed the nomination Of his party, planted himself
sQuarely on the declaration of the platform. He
went into no details. He accepted it in a broad
and generous declaration, and the President re-
Carded his promise to observe the declaration of
the platform to be- as binding upon his conscience
and action as was his oath to support the Con.
oirt he 1avU Of inf
The President had never left the country in any
doubt as to how he construed that platform.
The masters Of finance had begun to prepare for
Sff6 hour of danger and the collapse which they
thought would be inevitable. He knew three of
the greatest institutions in the city of New York,
that had accumulated more than $25, DOC, 600 in
GOLD as preparation for the change they thought
was coming.
Mr.. Warner-Dd the change Gomez
Mr. Hewitt-It did not, thanks to Grover
Cleveland and the magnificent administration OF
the Treasury Department, which has carried its
fame all over the world.
In conclusion, he thus summed up his objec-
lions to the resolution: Four months after its
passage, the country would be brought back to
the condition in which it had been on the 4th OF
March, 1885, and gold would be withdrawn from
circulation. The moment that occurred millions
Of men would lose their daily employment.
Then q demand would come for Rreenbacks, and
the long struggle for sound currency would end
In fat money. OF course, when the country
had passed through the valley of death
which once 1t had travelled with. tears
ing, taught by bitter experience, it
would steadily retrace its steps to basis of hon
est money-the money which the Democratic
party. from the time of Jefferson to the present
day, had insisted was the only money for the
people; the best money; the money which meas
ured all other money. The policy of the admin
istratiou was to keep gold and silver married for
better for worse one as good as the other. but
when the time came that the choice must be
made between them, the President of the United
States would adhere, as he had promised and
sworn to do, 20 the standard OF value which paid
debts in the value intended at the time the debts
were contracted
Mr. Weaver. of Iowa, said the only trouble
with the resolution was that it did not go far
enough IT, simply said in effect Come, let US
set apart $780, 000,0 600 for any emergency that
may arise, and pay the balance on opr debt"
Could there be more conservative and reGsoLa-
BILE proposition madeg He said that the bonds
were not intended to be payable in gold, and
charged that the bonds had shirked taxation for
3 quarter of century.
Mr. Hewitt felt assured that within the next
thirty days after thafirst payment the receipts
from customs and other sources would put
enough money iafo the Treasury to handle an
other ten millions of the debt just as they had
handled the first ten millions
Mr.. Payson. of Illinois, said there was in the
United States Treasury balance of SOC, 000. 600
for which there was confessedly to-day.
Every dollar of it represented the acquisition of
the toll and labor of this country. Standing
against il was debt subject to interest, that we
might pay, and yet because there were fearful
forebodings and lugubrious apprehensons of
what might perhaps come about if portion of
this money is issued the House was asked to
simply stand still and burn the candle at both
ends.
Mr.. Breckenridge, of Kentucky expressed the
opinion that the government had the option of
paying the bonds in gold or silver. All that
would De necessary to do if the joint resolution
should be enacted would be to change the circu-
would be some contraction of the currency.
How much he Mr.. Breckenridge did not know.
He believed that gold and silver should be kept
together if possible. Silver would not
be drawn out as one of the money metals of the
world. But that had no part in his desire that
the joint resolution should be- enacted into law