Omaha daily bee., 1888-04-07


After days OF discussion the senate IN
Thursday passed the bill to authorize
the secretary of the treasury to purchase
government bonds out of the surplus
funds in the treasury. Owing to the
doubt which the secretary of the treas
ury had expressed respecting his au-
thority to do this under existing law,
a bill was some time ago passed by the
house for the purpose Of removing all
question in the matter, and in the SIM
plest form necessary to accomplish the
object was sent to the senate. If that
body had been content merely to reas-
sure the secretary of the treasury as to
his authority to buy bonds it would have
passed the Measure at once, and by this
time the treasury might be in the
market as a bond purchaser prepared
to relieve the money market, which is
said to be daily getting into greater
need of relief. But a few senators
saw an opportunity to tack on as riders
q lot of pet projects of their own, and
the result vas an extended discussion,
from which it is not apparent any prac-
teal good was derived, and. ending in
the passage OF. an entirely different bill
from that adopted by the house. This
will necessitate a conference committee,
with the effect of delaying effort by the
treasury for the relief of the money
market by the purchase of bonds, if it
| does not result in leaving the situation
just where it is.
J The first section of the senate bill
simply declares that the provisions of
the act of 1882, authorizing the secre-
tary of the treasury to purchase bonds
with the surplus money in the treas
ury not otherwise appropriated,
was intended to be u permanent
provision of law and is now
in full force and effect. This
would solve all doubts OF the presi-
dent and secretary, and is all that the
eXigency required. But the oppor-
tunity for financial Legislation was not
allowed to pass, and a second section was
added requiring the secretary of the
treasury to use an amount equivalent to
the surrendered circulation of any ma
tioual bank, under certain conditions,
in the purchase at the market price of
an equivalent amount of silver bullion
in excess of the minimum monthly sill
yer coinage, which shall be coined and
used as provided for in the silver coin
age act of 1878, that act remaining in
full force.
The adoption Of this bill was a dis.
tinct victory for the friends of silver in
the senate, and very likely it will pass
the house, though it is very
certain to encounter a vigor-
Gus opposition from eastern rep,
resentatiyes and all the financial
interests of that section, 1t is to be
doubted, also, whether if passed by con.
gress it would be approved by the presi'
dent. 1t is not understood hat his po-
sition regarding silver has undergone
any change, and he could not approve
this bin to increase the coinage without
appearing 10 s~tultify himself, More
over, political considerations would
render eastern influence, and particu
larly that Of New York, especially
strong with him at this time, and thi!
will be solidly against the measure. Thu
bill ann be objected to on the score
of imitation since it simply provides tina
the currency surrendered by n~ationa
banks shall be replaced by an equiyalen
amount Of silver. Opposition will b.
solely 10 increasing the sum of silyeI
dollars. What the extent OF this in
crease may be annually it is impossibl
TO say with any degree of accuracy
According to the report OF the secre
tary OF the treasury the decrease in ma
tional bank circulation from July l
1856, TO November l, 1887, a period o
fifteen months, was in round figure
$50, 900 900. AT this rate of decrease il
bank circulation the annual addition Il
the supply of silver money would be
little more han double what ii is undel
existing law. 1t is quite possible, how
ever, and not improbable unless congress
makes some provision for continuing