Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-25
A BOND ISSUE NECESSARY
What Senator Sherman Told the Finance
Committee Today.

1t is reported that toward the close Of the
INFORMAL meeting of the finance committee
this morning Mr.. Sherman called the at
tention of his democratic colleagues to the,
as he termed 1t. Alarming condition OF the
treasury. He referred to the fact that the
gold reserve had been entrenched upon to
the extent of nineteen millions. the money
being used for current expenses and not
redemption purposes, was required by
the law, and asked the democratic Sena-
tors what they proposed to do to remedy
this condition of affairs. Mr.. Sherman as
serted that the only thing that could be
done was the issue of bonds. for thereby
was the only means presented to the gov
ernment to replenish the exhausted gold re-
serve. He emphasized the necessity for
this course, and when he pressed his asso-
ciates for an answer he learned that there
was a disposition on their part to permit
the bill to pass as it was reported to the
Senate.
There Nrst Re Bonds.
Mr.. Sherman is said to have then told the
democrats that there must be bonds, and
that sooner or later the democrats must
come to 1t. He suggested that there be is
sued total of $500. 100000. to be redeemabie
at the option of the government after five
years, and to draw not more than per
cent; fifty millions of this issue he would
put out in denominations of $50 or multIples
and stipulate that 1t should be available for
treasury purposes at once.
The democratic members and some of the
republicans maintained that the authority
was already given to the Secretary Of the
Treasury to issue bonds under the act Of
1875 but Mr.. Sherman took issue. 1t is said
and asserted that he very much doubted the
authority of the Secretary to sell these
bonds. and especially to sell them to pur-
chase gold to meet the deficiency that now
stares him in the face.
If the democrats did not intend to protect
the gold reserve, Mr.. Sherman said he
would Introduce the amendment himself
as he considered l. matter of the most
vital Importance This statement naturally
filled the repeal men with the gravest ap-
prehensions for the success of the repeal
bill and they besought Mr.. Sherman not to
take the step he had intmated, for the rea-
son that it would precipitate another ont
break on the part of the Senators from the
south and erlanger the ultimate repeal Of
the bill itself.
Ev VIII Make II Statement.
Mr. Sherman finally consented not to
take the initiative. but warned his coll
leagues that they must do something to
protect the gold reserve from further en-
croachments. AS soon as the Senate be-
gin voting upon the various amendments
possibly tomorrow-Mr. Sherman will, 1t
is said. content himself with making a
statement in which he will publicly call at
tention to the condition of the treasury and
call upon his democratic brethren at the
proper time to enact the necessary legis-
lltlon. canvass of republican Senators
TINS morning leads to the conclusion that
they will offer no amendments. but will re-
main for unconditional repeal, trusting to
the party charged with the duty of legis-
iation as soon as the repeal has been ac-
m do bot ya
help the treasury out of what they consider
a very serious situation