New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-05-17

Secretary of the Treasury last month In reply 70
teerraphic inquiry Of his own asking the secretary
whether the statement in article in The Tribune wa'
..oct That statement contained the Information
that the secretary stopped Tie purchase Of per
cent bonds and had begun the purchase OF l. per
cent bonds.
Mr. coclrer asked what was the supposed ad
vantage Of that - -
for it.
Mr. Morrill, explained that if the per cent bonds
had been offered for a reasonable price the secretary
,youd have bought them; but when combinations "ero
made 70 mt ND the price the Secretary, OF course
would not buy them
Mr. Plumb said that that would have been good
cnIanotIon if the Secretary had offered it. lie had
said that there were emergencies ahead, but he had
not said nythine oil couo'NdO'oh vi INC Pun Va
the holders of bonds.
Mr. Morrill, said that he knew the fact to be so.
Mr. Plumb went on with his argument. lie com
pared every secretary OF the Treasury to hen sitting
on nest Of eggs and regarding the subtraction OF any
Of them as a mortal offence They wished large sum
- money in the Treasury for the purpose Of feeling
that II was there and element OF personal con
sequence lie never would believe. until he believed
i'm the coming Of the millennium, tina any Secretary OF
the Trcasury-Republcan or Dcmocrat-Woud 90
nuCht except keep in the Treasury every simple ac
ton Of cent that lie got in there, 50 long a. lie ad
decent way to keep it there. lie (Mr Plump "ahted
80 far a. he could By his vote and Influence " us
,b,,e the Treasury Department from the business OF
,,o nc1ple Of the United states. lie did not want the
secretary OF the Treasury t. be The instrument OF
snoculatlon In Wall street cl-cwhere. lie did not
want the bull, and bears Of NewforN TO be specuAt-
lr, ON v-ha, the Government going 10 do about
retaining putting out money. lie dId h't WANT ~
b, Treasury " pont,r pcddlcd on Wall street, com
ing from persons near to the throne. lie did not want
to SEQ the Treasury Department made the football of
s,ccplaton As matter affecting the sccretary's Of
e,aI good name az A matter affecting the interest OF
the American people, Congress ought TO put unit
on the amount Of money = be kept on hahd IN 'io
Treasury 50 that whatever the result might be
could never be imputed to the Secretary ht ne had
uscd his great discretionary power either unwSely or
vicledlv Tho sum should bo fixed az An amount
THAT would Big perfectly safe and an equivalent sum
hould be added TO the currency and thus the Treas
ury Department would be taken ont OF the currents
and track, Of business. out Of conic't'h Win u4o
affair, 4 men, out Of suspicious OF other relations win
speculation. Uutl that was done here would pe
scandal upon scandal complaint upon complaint
WRONG upon wrong. 49,
general purpose II Nj Plumb's amendment, but De
asked whether ten millions reserve was not too small
Mr. Plumb replied that he did not think Ten
million, was tho sum fixed by his amendment IL
simply SAID that the amount TN tAe Ire''"y' i"'i7
such amount a. may be retained for the redemption o'
Mr.. ,lcrman-That is Fixed by law Mt Sloo'oo'ooo'
Tho Secretary has no discretion In the matter.
Mr. pluub-l do not think 50. Tie law Is h''
r,nor,t,e IL j, perm.,,ve only. Tie largest
amount Il Treasury notes presented FOR redemption
In ans ono year six millions and the t''a amount
presented in elcvcn years was Only VeN'! -e'
millions.
Ir..ock and >hcrman-thc latter quoting the IA"
.e,tln, apart "A hundred millions Of gold Tor the Ie
t.,ptllp u greet backs and declaring mat any Se'I'
far, ~ the Treasury who would disregard II "oHN ue
improbable for high crime and mi'd'meaNor' VT.
sherman went on TO argue against the Nl'."uon VI
;ur sacred pledge given 10 the world til' one "''N
million, in gold would be- held In the Treasury ior me
redemption of Treasury notes. II woid De- TIC sdu'
4, shoci, 20 the public credit.
The discussion continued by NcSSrs. Cockfel
\hrlch ingalls,. Farwell Harris and Ednunds' 'HeHE
IN tho point OF the gold u hundred millions
for the redemption Of Treasury notes Mr.. Co'hfeH
asserting that there not particle of law or inc
statute books requiring such reserve ana arguing
that there necessity for H. as treasury HUGS
were rarely offered for redemption.
Nr Edmund, said that Treasury notes had not been
presented for redemption because the people knew tnao
t.cy could get gold for them Whenever they wanted
IL and bee related the anecdOtc OF the FlenchIah "lo'
when there was a ~ bank. presented the notes
which he held. and the coin being PAID over to
him said: OH If YOU have got the money do not
want IT, If you have not got H.. do II there was A
panic and run on me treasury AN" - al t,t -
reserve meet II, the Treasury WouId idI Just - I"
| bank would ~
Mr nrall, argued that FOR some years after the Re
| l.uIft.r law tnc gold that had been obtained from
the Sale II and Il per cent bone, "a, no, nr.i
IN 10 special reserve. but was mingled win the fvlc'
,.uurtc, of the Government bcN"Ad tAc p"''io'HN Oh
| lcro-uit.ou or Identification. IL had h"t h'cl So
aside ID, ,pcclal fund uUul ISL year or iN' t't'
A., mentioned that Ia order 20 r"pcl absolutely tho
idea mat jRr NHlSo ot r y -, tsc @' mat hc.o
| . ls Of -
! wn, am idle assumption, mere superstition, houn,
had been ,oa to Jho amount '' F'1' r' c , cent
T'' ,1 been pa, In interest I'D ANYBODY suppo-,
Lt ID these bond, INSTEAD ot helms sold for suld nv"
Seen Ned u the Treasury and the coupon cut OF ana
DESTROYED they ~ tue thcrc would h1N" been any
difference the marhet value Of United state, no"'
II had been stated In the discussion odaN tha'
nno ''y rsrt not had bccT pe,cntrd for re4cup
uou. $1,000 lee than the interest ptd out Tor TIC
np. Of having that idle gold Wing m the Treasury
Wihin That time more than twice tho amount OF
,od had been converted into grccnback, thih theIN
had been OF rr.enbacks converted into gold
Mr. Nldrch asked Mr. lneal, whether h. Thought
| that United stics note would have any aid"i N3Uio
| fine Treasury security
| Nr. ingalls, do not.
| VIZ. Ad.ich-Ihcn that would have been equally
| unnecessary q, T. the gold reserve
Mr.. lncall- ABSOLUTELY unnecessary. It is a nero
vague supcr,t tion and nothing but that
Mr.. sherman, IN an uudcrouc-Fat money
MIR. mglll,-" Fiat money" SAYS thu senator from
ohio. rher. IS NO Hat money In to e@ on9 go IT. It
/
| ropneity for redemption.
| 'rnr di,cu-.i, N then turned the monthly debt
statements Of the Treasury. Mr. ingalls, asserting that
| he found i'm them astounding amazing bewIderln;
and lrrrconclabc discrepancies" Nj. sherman under
| taking to explain them and Mr. Allison giving his
| views upon them, concdmg generally with those ot
Mr. sherman and saying that there was an erroneous
belief In the country, particularly In the west that
| thrrr was nm Immense amount Of Government money
| .torcd up In the Treasury. while. In fact. the rHa
surpiu, was. rs stated by Mr.. sherman, S31,OOOOOO
| \ large amount of the money held In the Treasury
Mr.. Allison said and carried the debt statement
4 lNs
! could not b. used hy any secretary ~ the Treasury
without further legislation. As far rs the gold and
silver certificates were concerned amounting Ia TEb
OOOOOO, that amount Of money specially devoted
| " law T. their payment and therefore not dollar
II IL could hc touched. II might be that there wa
y large working balance in the Treasury than was
ncccssary. on that point he not p pared to give
any opinion.
A Sl,HOOL 81 PEP NTENnENr RESLGNS