Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1888-09-22
by the senate had been pigeon-holed, Mr..
Wilkins moved to suspend the rules and
he f11l

by the senate had been pigeon-holed, Mr..
Wilkins moved to suspend the rules and
pass the following resolution:
Resolved, by the house of representa-
tives, That it is the sense of this house
that section of the act making appropri-
tons for the sundry civil expenses OF the
government for the year ending June 80.
49, and for other purposes. approved
March 3, 1881, which is as fellows: That
the secretary of the treasury may at any
tlma apply the surplus money in the
treasury not otherwise appropriated, or SO
much Their OF as he may consider proper,
TO the purchase or redemption OF United
States bonds; provided that the boads 81
purchased or redeemed shall constitute no
part Of the sinking fund, but shall te RI
deemed and Cancelled, was intended TO be
a permanent provision OF law, and the
same is hereby declared TO have been since
Its enactment, and 10 be now, in the opIu-
ion OF the house, in full force and effecs.
This was a mere resolution. and IN or
der 10 remove the last vestige of en- ex-
case that the president might have as 10
the validity of the law of 1891. the house
passed it. 1t was never sent TO the SEN
ate, it was never concurred in by the
senate, but was nothing more than n
AASAN SA BhSoSlSA4 VI Oi'ial-oAA " TIC
berS of the house voting for it, that the
law of 81 was valid and binding.
Now what did this great official do?
He made up his mind that the law of 81,
which he had before declared TO be a
nulllty, was all right, and that the secre-
tary of the treasury could act under il
and purchase bonds with the surplus.
What reason did he assign for this
change of heart? He said the house had
expressed itself in favor of the law of 81
in the passage of this resolution. and the
senate had expressed itself in favor of
the law of 81 by the passage of the house
bill 1884, with amendments. True.
neither of these became law. but, as it
suited his purpose not TO purchase bonds
with the surplus. he held that the law of
81 was all right. What was the result:
Four per cents went up from LEA TO l.21,
and 1 12 per cents from LOG TO Los in
side of thirty days.
To show how false and insincere this
position was reference need only be made
To the Morrison resolution. which passed
the house and senate during the last
days of the first session of the Forty
ninth congress in July, 1886, and went
to the president, but which he refused to
sign. This resolution required the pres
ident to purchase at least ten millions of
dollars per month with the surplus, pro-
vided that surplus exceeded twenty
millions, which amount it authorized
him TO keep on hand as a working bal
ance. This resolution was the concurrent
action of both the senate and the house
of representatives. This resolution was
a direct expression of the senate and
house of representatives in the Forty
ninth congress, requiring the president
TO pay out at least ten millions per month
OF the surplus and purchase the bonds or
of the government for that
and was in effect n ratification
Of the law of 1881. This resolution.
as you will remember: went To the pres
ldent Just a few days before the ad iourn-
ment of the first session of the Forty
ninth congress, and, in accordance with
the law he was not compelled to sign or
return it. After the adjournment of
congress he sent it to the secretary of
state with the following statement as To
the reasons why he did not sign it:
This resolution involves so much that
is of serious import that | do not deem IL
best to discuss it at this time IL Is not
approved because / believe il TO be un-
necessary and because i am by no means
that It's mere passage and ap-
prevail at this time may not cndanger ana
embarrass the successful operations and
impair the confidence which the people
should have in the management of the
finances of the government.
Why was it unnecessary at that
time? There can be but one good rea-
son assigned, and that was that the
law of 1881, March 5, gave to the presi-
dent and the secretary of the treasury
full power TO invest the surplus in the
treasury and that he thought so at
that time.
In 1887, however, in the interests Of
the Wall street spectators, In the in
terests of the national banks, in the
interests Of bis political friends in
New York and elsewhere. he ignored
of 1885, deliberately giving
tional banks of his movements and
his actions ard of his inten ton TO re-
quire ad ditioual legislation in relation
To this law of 1891, the natural r suit
of which action was to depreciate the
value of the United States bonds
Then. after the banks and his Wall
street friends had loaded up with
these New York securities, after
certain favored banks had de-
posted these bonds in the
treasury and secured the sixty millions
Of dollars of the surplus free of charge,
after these bonds had advanced in price
3 or per cent, then he conceded that
the law of 81 is valid. and orders his sec
rotary 10 again begin the purchase of
bonds. | have an official statement
from the secretary OF the treasury under
date of August IS. 1883, speaking for
itself, which | Will now introduce in evil
1ence.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
WASHINGTON, ID. C.. August 20 1855.
Hon s. Il. Peters, House OF Representatives.
Sir-In response TO the request contained
IN your letter of the 18th inst. | enclose
herewith tables showing the average fat
and net prices Of L. :. 1 per cent aud a.
per cent bonds each month from Deem
Der. iSS6 TO July. isS7, inclusive and the
rates which would be realized bp investors
purchasing at the prices stated The fat
prices are the average daily quotations for
coupon bonds OF the respective classes and
he net prices are the average after de
iucting the accrued interest on thu. bonds.
Respectfully yours.
lS8gnedl G. >. FAIECHILD, sec.
United STATES FOUR zFER CENTS COUPON
MONTHLY AVERAGE.
! Z II