National Republican., 1888-04-04
4 IiInDing Defense,

AItcr nearly two months delay Secretary
Fairclild has answered some Querics put 10
lin by the House Of Representatives On the
;th Of February last, These queries relate
80 the purchase uf bonds at . premium
made last fall and the additional deposits
l.adc in the national banks about the same
period.
Secretary Fairchld says the bonds were
purchased aud the premiums paid under the
law authorizing such purchases for the
sinking fund. There is not the shallow of
authority in the sinking fund law to allow
ihe payment of premiums ON bonds 20 be
placed in that fund. The sinking fund law
was enacted in 1852, and II reads as follows:
That ali duties ON imported goods shall be
raid in coin. "r in notes payable on demand
h.r,tot"rr authorized to be issued, and by
law receivable in payment Of public dues, unl
tl,- coin 80 raid shall be- set apart a. II special
fund. aud shall he applied Il. follows:
Fi>t. Ia tine payment IN coin ut the interest
"n il,r bonds ot the United states
Second. To the purchase on payment OF one
rrr ccutnn Of the entire debt ot the United
states, To be- made within each fiscal wear
after the lit day Of July, 1862, which i To he
sci apart "S "a sinking fund, and the interest
81 which shall in like manucr be applied to
tie purchase ~ payment oi the public debt aS
ilc secretary ol the Treasury shah from time
10 Time direct.-.I'ni'ci states Statutes at
Large. vol. l", page 3li,
That law is part of the contract. aud
every bond purchaser took hi, bonds with
The knowledge that the Uuited States re-
served The right and pledged itself to eXer-
else ii. Of retiring each year | per cent of
every issue Of bond, made by it, aul In al
'siiiun ,hcrct"a sum equal 10 the umplnJ
h tEc interest on NIL the bonds In the sink
hg fund.
Til was aN much part of the contract
80 the agreement to pay tn" interest on the
bond, -, certain time, and The principal at a
fixed date. Secretary Fairchild. Il, Secretary
al the Treasury, represented the United
States IN this contract, and had the perfect
and indi-putablc right to call the bonds for
The sinking fund AMI pay them at par, There
isNU court in thri,tculun or hcuthcnlom
ihgi would put any other con ,tr,IctiOn upon
This law, aud Secretary Fairchild, in paying
q premium upon bonds Tor the sinking
fund, Violated the law. gave q gratuity Of
several million dollars To the bomdholdcrs,
aud increased the public debt without any
other authority than that Of President
Cleveland, who sustained his action and
who himself has No more authority than
tie poorest hootbIaok ON the street to in,
crease the public debit
Tie increase If The deposits in the ma
llma banks wa, a proper aud wise move
mrr1 II It hud been property ml wisely
done, The money pl The country was he
ing absorbed in the rrea-Ury, The Demo
cratic House of the rurryniu,h Congress
lad taken uu step, +" provide against thi,
accumulation. President Cleveland, we'll
knowing that the accumulation must fol-
low, md refused localI the hiticlh Congre,,
together i'm rNtU session Ia provide q
mmcdy, aud the country VA, upon the
verge "t ii financial panic, Having refused
10 adopt the constitutional method taken
by the last Democratic President from New
York under similar circumstance, that Of
ealing Cuugrr-- the administration ha, tp
adopt some plan 10 relieve the country by
g'tiin" part Of the money in tho treasury
into the hand, of the people.
Tie mcrca,rui the number pl the dcpoS-
itnrirs aud the amounts deposited was the
pest possible method, though the best ludg-
O,nt was not exercised mu,ing It. \ pub
lie notice should have been given that any
LaEh dcpO,iting ~ 900 or any multiple of
bat sum in United States : per cent. bonds