The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-29

Mr. Sherman said silver would he used
more and more. and ought to be used more
and more The world was not coming to
end because the purchase of silver was
stopped Colorado would develop her other
resources and the people of the State, now
frightened out of their wits because they
were about to lose one industry, would md
ample employment IN the development OF
tneir soil and OF their mines. 10 WIN All
the mining States. II doubt very much,
said Mr.. Sherman, whether the bill, when
1t passes, will meet the expectations or
many people. / believe that ii Is necessary
TO superadd to this measure other meas
ures more important than this After
thinking of it fully. believe 1t would not
be wise to offer any proposition of a new
character raising other questions or doubt
and dispute on this bill. 1t is absolutely
necessary, in my judgment, to have some
legislation in respect to the fund on hand
for the maintenance of resumption. be-
lieve that the fund of $100.00O.O00 in god at
this moment is used contrary to the pro-
visions of the existing law. Under the law
that fund must remain in the treasury, and
cannot be taken for any purpose whatever
without breach of law, and yet am told
that this fund is being used TO pay
the ordinary current expenses of the gov
eminent. 1t ought to be at once supple
mented by gold"
Mr.. Teller-How?
Mr.. Cockreil-Sel them where?
FIR. Sherman-To our people.
MIR. Vest-Suppose that the of this
reserve gold, as it is called, in the treasury
should become necessary to maintain pari-
" between gold and silver, would not the
Secretary of the Treasury have the right to
use it2
CANNoT SELL BONDS NOW.
Mr. Sherman-I say that the law of 1873
which provided for the fund has not been
changed by subsequent law. There is no
subsequent law that has any reference to
1t whatever, except that one of 1882. There
is another question that has arisen in re-
gard TO the construction of the law by
he ~ tba IN,
sell now any of the bonds provided for in
the refunding law for any purpose what
ever, except the maintenance of United
States notes at par with gold. 1 would like
any lawyer here to tell me whether by any
act that has passed since that time there
has been the slightest provision made that
can be construed into authority 10 sell
bonds, except TO maintain the payment oi
United States bones. Therefore, II YOU
leave the Secretary in the present condi-
ton of affairs. unarmed with authority TO
borrow money upon the credit OF the Uniteo
States, you neglect your public duty when
il is plainly called to your attention. say
nyseff as a lawyer, that, under existing
law. there is no power to sell The per cent
thirty-year bonds, or the AZ per cent M
teen-year bonds. or the per cent ten-year
| except for the purpose OF having gOlu
| enough to redeem the United States notes
| and no Secretary would dare to issue either
| of these bonds even ii the law permitteU
| him to do IL.
Mr. Blackburn-Is il not true that not
| one but two Attorney-generals nave taken
| different view and have held the Ireas-
ury Department had authority to sell these
bonds?
Mr.. Sherman-I think not / have not
| seen any of these decisions
MIR. Blackburn know il is generally un-
derstood that the late Attorney general
| did, during the administration of Secretary
| Foster, hold that the power for the sale of
| these bonds to make good the deficit IN
| the gold reserve of $10O.000.000 existed.
Mr.. Sherman-No Secretary has dared to
exercise that power.
| Mr. Blackburn admit there has been no
| exercise of that power. | concur in the
| opinion of the Senator from Ohio. deny
that the Treasury Department has any such
| authority, but the question / asked was
| to whether the last Attorney-general did
/ not, under the administration of Secretary
| Foster, hold that the power to sell bonds
| existed.
| Mr.. Shenandoah 1 cannot answer, be-
/ cause do not know.
1t is now stated on both sides of the
| Senate that there is no power in the Secre
| tary of the Treasury to issue any kind OF
| bonds. Even if he had the power what
| tary would dare to issue thirty-year bonds
running at per cent. when we can borrow
| money easily at 3 per cent. If we should
| ATTEMPT to sell those bonds at premium
| nobody but a capitalist who looks long
| ahead as to the value of accruing interest
| would be able to purchase them. They
| would not be distributed throughout the
| Mr.. Sherman said he was tired of the
! newspaper talk about the President of the
| United States doing this and that i'm regard
TO financial matters The President had no
| more power over financial questions thar
1 any other citizen of the United States.
this hour the powers Conferred to deal
with financial questions had been with the
| Secretary of the Treasury. The President
| was not TO exercise those powers. 1t was
| the delegated agent of Congress-the Sec
| retary-who reported to Congress direct
| and not through the President
4 r. Rutler-MaV Il
| tary of the Treasury has asked for the au-
thority which the Senator is claiming he
| Mr.. Sherman-I would not like to answer
| that.
| Mr.. Butler-It must be public matter.
| Mr.. Sherman-l do not think he asks for
| it, l can say he does not ask it.
| Mr.. Butler-That must be a matter of
| public record If he has. certainly he should
| communicate IL to Congress.
A DELICATE NATTER,
| Mr.. Sherman-I do not know of any rec
| ord that pertains to the subject. 1 should
think it would be very delicate matter
] for the Secretary of the Treasury to at
| tempt to originate that idea when the Con-
| gress OF the United States is the proper
| place for it.
| Mr.. Teller-Would there be any. impropri-
| ETY. If the Secretary thought it necessary
to sell bonds on his part to address a COM
/ munieation to Congress on that subject?
\
Mr. Teller-Woud it not he the proper
| thing TO do if he thought he ought to sell
bonds?
| Mr.. Sherman-The Secretary never vol
| unteers advice. The Senator may secure
| his opinion by a simple resolution.
| Mr.. Teller-If there is a deficiency i'm the
| revenues now and likely TO be in the future
| L ask the Senator whether that is not
| proper subject for the President of the
| United States TO address Congress on, un-
/ der the constitutional provisions that he
/ shall inform Congress as to the condition
| OF the country, etc?
MIR. Shenandoah has been done; per-
| haps the Senator overlooked it. 1t has been
/ done by the finance committee calling on
| the Secretary OF the Treasury as TO the
i nature of the deficiency. how much it is.
etc.
Mr.. Teller-What 1 asked was whether
the President could not. under the law, ex-
ercise the power conferred on him by the
| Constitution to keep Congress advised as
| TO the condition of the country, make such
| q communication.
Mr.. Sherman-Cndoubtediy he could. But
the Senator. who has been a Cabinet Of
fieceT, is probably aware of the fact that all
questions OF finance dealt directly with
| by the Secretary OF the Treasury. ! do not
| iGent addressed Congress, except in his an
nuai message, upon financial question.
Mr.. Blackburn repeated his question
| 10 whether the late Attorney general had
not rendered Il decision that power TO sell
bonds existed. and added that the matter
| had gone far that plates We're engraved
from which the bonds should be printed.
| He asked Mr.. Sherman if he did not know
| that was so.
II do not" replied Mr.. Sherman.
Mr.. Blackburn say / do. / will ask
| whether the Senator from Ohio was con-