Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-28
The Reserve Fund.

BY the sale or bonds, say, was MI
sherrnan's reply.
ITO be sold where?' asked Mr.. Cockrell
ITO be sold to all our people" responded
Mr.. Sherman. II will wager everything In
the world that within five days after the
offer Of a popular loan. at three per cent
running only three years, the people OF this
country. the men who have doubts about the
safety of banks. VIII seize upon these small
bonds and pay coin for them just as eagerly
as the French people did when their country
was invaded"
suppose that the use of this reserve
gold," said Mr. Vest. has become neces-
sary to maintain the parity between gold
and silver. Would not the Secretary OF the
Treasury have the right TO use II!
This reserve fund" said MIR. sherman,
was set aside in pursuance of the re-
demption act In ISIS and no subsequent law
has changed that act
Il agree with the Senator from Ohio. -
said Mr.. Vest. that under the act Of 1870
the purpose of this reserve was specih-
cally marked out and do not believe that
the claus in the act of 1880 constructiveiy
repeats any part OF the act of 1915.
THAT In the construction that put upon
IT," answered Mr.. Sherman. There Is
another question which has arisen in regard
to the construction of the law OF 1915. 1t is
whether the Secretary OF the Treasury can
now sell any of the bonds provided for in
the refunding law for any purpose whatever
except the maintenance Of United states
notes at par with gold.
No Authority for Bonds Now.
sur pose the Secretary of the Treasury
should be called upon now to provide
money to, make good this reserve. for in
stance. How could he do 1t? Where can
he get the money? The only law that au-
thorizes the Secretary of the Treasury to
issue bonds is the law of 1875. and 1t speci-
fes as per cent, thirty-year bonds; IL
per cent. fifteen-year bonds, and per cent.
ten-yesr hcnds. They are to be issued for
the specific purpose of maintaining resump-
ton on United States notes. There has
been no alteration of that law. / would
like any lawyer here to tell me whether
BY any act passed since that time there Is
the slightest provision that can be con-
strued into authority to the Secretary of
the Treasury to sell those bonds except to
maintain the payment of United States
notes.
IT you leave the Secretary in the present
condition Of affairs unarmed with the au-
thority to borrow money on the credit of
the United States you neglect your perfect
duty when it is plainly called to your at
tention- Under existing law there is no
power to sell any Of those bonds except
for the purpose Of having gold enough to
redeem tinted States notes. And no Sec
rotary of the Treasury will dare issue
either of those species of bonds even IL the
J.. law permitted him to do it,"
rs 1t not true" asked Mr.. Blackburn,
that not one, but two, Attorney Generals
have taken different view and have held
that the Treasury Department has author
ity to sell those bonds
II think not" said Mr. sherman. Il
have not seen any of those opinions
Mr.. Butler wanted to know IL the Sec
Rotary OF the Treasury had asked for bonds.
Mr.. Sherman said he did not care to
answer that question, but afterward said
he believed he had so asked.
Mr.. Blackburn asked If eN-Attorney Gen.
eral Miller during the last administra ton
had given an opinion holding that bonds
could not be issued and whether the plates
were not made at the bureau of engraving
and printing?
Mr.. Sherman did not know all that and
denied that he had been consulted.
Mr.. Blackburn said the plates could be
produced In the Senate within an hour.
His Proposed Amendment
Mr.. Sherman said that Congress must do
something to help the Secretary of the
Treasury. and do it at once He didn't
offer an amendment. but sent to the clerk s
desk and had read the amendment which
he had intended to offer 1t authorized the
issue Of not to exceed two hundred million
per cent bonds, redeemable in three
years in coin. in denominations of $50 or
multiples thereof. These bonds, he said.
would not be bought by syndicates. but by
the great mass Of the people. The issue Of
considered Immediately after the passage
Of the pending bill
Mr.. German Criticies Mr.. sherman.
Mr. German criticised Mr.. Sherman's at
ttude as remarkable and said that he was
seeking party advantage. The repu'li-
cans had the key to the situation and Pres
tdent Cleveland had been obliged to accept
Sherman's conditions. The delay in the
Senate was because repeal had been In
the minority and it required time to turn
that into a majority.
MIR. German recalled Sherman's state
ment in a published interview, that uncon-
ditionai repeal was impossible.
Mr. Sherman replied that it would have
been except for the collapse of the COM
promise. Mr.. German said the democrats
had been obliged to set aside lifetime con-
victions to meet the emergency and save
the administration. With them he be-
heved 1t was bad to strike down without
notice any industry. He did not object
to the bond proposition. but to the time
and manner of broaching 1t. Had the re-
publicans shown less partisanship a better
bill could be passed.
Mt. Sherman stated that republicans had
been given to understand that all propo-
sitions incorporating an issue of bonds had
been rejected.
Mr.. German declined to repeat confiden-
tial talks. but added that II was exceed
Ugly unfortunate that democrats had been
misunderstood. Mr.. German expected fur
Their financial trouble for the treasury. 1t
would be caused by extravagant appropria-
items In recent Congresses. but he asserted
the democratic party. now controlling the
entire government. would assume the re-
spcnsibility OF meeting It.
Mr.. Stewart followed Mr.. German.
Mr. Stewards Substitute Rejected,
BY q vote Of g to % the Senate rejected
Mr.. Stewards substitute for Mr. Perkins
amendment. which authorized free coinage
In any denomination, instead of specific
coins. as stipulated in the Perkins amend
ment
The Perkins Amendment Rejected,
The vote was next taken on Mr.. Per-
kins amendment. with the monetary COM
mission provision expunged. This amend
ment provides for the free coinage the
government retaining % per cent seignior-
age. and other minor provisions The
emencment was rejected by vate Of IL
The Hland-Allison Act.
Nr. Berry CArk) offered an Amendment
intended to revive the Bland Allison act
and proceeded to address the Senate upon
10.
Mr. ThOmas' Opfnion.
The attorney for the District today sub