Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1888-09-22

the secretary of the treasury might use
| 1t for the purpose of purchasing the out
standing notes of the government.
Now, what was done with this money;
| These banks went into the market on
Wall street, New York, and bought up
| these bonds, 1-2 per cent and 4 per
cent, and took them to the treasury de-
| partment and there deposited them fol-
safe keeping. The banks still owned the
bonds and were entitled TO the interest
which these notes or bonds were draw
ing. The government was safely keep
| ing them for the benefit OF the national
banks; it furnished fire proof vaults In
which TO deposit the property of these
| banks: it furnished money TO pay for
guarding them and keeping watch over
| them. The banker need have no further
solicitude or care in regard to these
| bonds. There they we've, safe In the
treasury department, all the while. night
and day, drawing interest at and 1-2
per cent, and this interest was coming to
| him.
| The government could have bought
these bonds for the same price that the
| banker paid for them, because the gov
eminent could have gone on the market
IN Wall street and purchased them the
same as the banker did. BY this pur-
| chase, under the law of 1891. the obliga-
ton would have been cancelled and that
much of the government
DEBT WOULD HAVE BEEN PAID
off and the interest stopped. The
president, however, did not seem 10
| be DESTROYS of doing this; there seemed
TO be some secret motive that induced
| him to declare that the act of 1881 was
not of sufficient validity.
What next: The president asked that
the law on the statute book. which he
had nullified, about the validity of
| which he had expressed gave doubts,
should be re-enacted, and this authority
to purchase be given.
Under our constitution the house of
representatives alone has the power to
inaugurate all such proceedings touch
ing the revenues Of the government.
This class of legislation is under the con-
troll of the committee on ways and
means, which was COMPOSED of thirteen
| members, eight of whom We're Demo-
Gratis and five Republicans. This COM
mittee was appointed by the speaker of
the house, and every one of the Demo-
cratic members of the committee are in
sympathy and in harmony with the
speaker and the administration.
Notwithstanding all this, the house of
representatives of the Fiftietn congress
was in session nearly three months be-
fore any such measure was
brought before that body for its
consideration and action. The Fiji
tieth congress convened on the first
Monday in December, 1887. On the 1st
day of March, 1888, the committee on
ways and means, through its chairman,
Mr.. Mills, of Texas, called up for con-
slderation the following bill, which was
numbered 5,034, and is in words as fol-
lows to wit:
BE it enacted etc, That the secretary
of the treasury is hereby authorized to
apply the surplus money now i'll the
treasury and such surplus money DIS may
hereafter be IN the treasury, and not
otherwise appropriated, or so much thereof
as he may consider proper, to the purchase
or redemption of United States bonds"
1t was not very formidable piece of
legislation. 1t was almost the exact
language of the law of 1851, and con-
sequently there was no great time
needed IN its preparation. There was no
opposition to II in the house, because it
was simply a re-enactment of the law of
1881; and If the administration and its
defenders had been III earnest IN regard
to the application OF tins surplus in the
treasury, to the purchase 81 bonds of the
United States, this oil. NIL int have been
introduced and passed by unanimous
consent, among the very early days of
the session. 1t was not brought up for
consideration until the Is, OF March.
when it passed without any opposition.
This bill went to the senate was referred
to the finance committee OF that body,
and, on the ith of March, Just
six days after it passed the house.
was reported back favorably. 1t was
then discussed in the senate and passed
in substantially the same language as it
came from the house, but an additional
section was added to it, which is known
as the Beck amendment. 1t reads as
follows:
SEC. ,. That whenever the circulation,
or any portion thereof, OF any national
bank not in liquidation shall be surren
dered by the deposits Of the United States
notes in the treasury or otherwise, and the
same or an equivalent amount IL not
taken by other national banks within
thirty days thereafter, the secretary Of the
treasury is hereby authorized and directed
to purchase al the market price thereof an
equivalent amount of silver bullion in eX-
cess of the minimum of two million dol
lars worth per month for coinage pur-
poses, which shall be coined ana used as
provided in the act passed February IS,
1873. entitled An act to authorize the coin
age of the standard silver dollar and re-
store its legal tender character Provid-
ed, That nothing in this act shall alter or
repeal said act OF February 2S 1875"
This bill as amended passed the senate
without dissenting voice on the 9th
day of April, 1888, and was returned to
the house for that body TO concur in the
senate amendment Upon its return to
the house, instead of being taken up and
passed. as it could readily have been
done, it was referred 10 the committee
on ways and means, and it has never
been acted upon by that committee nor
reported to the house for its action from
that day to the present time. If 1t had
been reported to the house, and that body
had beer given a chance TO consider it,
enough on the Democratic side of
the house favorable to silver
would have Joined with the Republican
side to pass 1t. But Dir. Cleveland did
not want such a measured passed. 1t
was rumored and was one of the open
secrets Of the house that he had indicat-
ed his intention 10 veto such measure,
should it pass. And so orders were given
to pigeon hole it IN the committee on
ways and means. where it still peaceful
ly rests and sleeps.
In the meantime the surplus in the
treasury continued TO accumulate. The
president had already taken a position
that he had no power under the act of
81 10 invest this surplus in the purchase