New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-29
RIkER'S,
9TH AvENgE. COR. 32D STREET.

6THu AvENlE, COR. 32D STREET.
days after the offer of popular loan al per
cent running only three years. the people Oh inns
country the who have doubts ABOUT 'he
safety of the banks. will seize upon these smaii
bonds and pay coin for them just as eagerly az the
French people did when their country was invaded
Mr. vest-Suppose that the use of this reserve
gold in the Treasury has become necessary TO
maintain the parity between gold and silver would
not the Secretary of the Treasury nave the rieh'
it?
Mr. Sherman-This reserve fund was set aside
in pursuance of the Resumption act IN lS'o' anu
no subsequent law has changed that act
Mr. Vest-I agree with the Senator from ONO
that under the act of 1915 the purpose OF TINS
reserve was specifically marked out, and 90
no, believe that the clause in the act of 1890 con-
structvely repealed any part of the act of 1910
Mr. Shenandoah is the construction that pun
unon it, There is another question when mas
arisen in regard to the construction of the law OF
1870 1t is whether the Secretary OF the treasury
can now sell any of the bonds provided Tor III ue
refundng law, for any purpose whatever except
the maintenance of United States notes al par win
cold on that | have very clear opinion. Sup
nose the Secretary OF the Treasury should De
called upon now TO provide money TO make good
this reserve for instance. how could he do II?
Where can he get the money? The only law that
authorizes the Secretary Of the Treasury 10 issue
bonds is the law of 1870: and ii speches them al
per cent thirty-year bonds. AZ per cent hfteeh'
year bonds, and per cent ten-year bonds Ihey
are to be issued for the specific purpose of main'
tanning resumption United States notes. There
has been no alteration of that law. | would Ike
any lawyer here TO tell me whether by any act
vision that can be construed into authority 10 The
Secretary of the Treasury to sell those bohus, az
notes If You leave the Secretary in the present
condition Of affairs unarmed with authority 10
you neglect your public duty when II Is plainly
called to your attention Under existing law mere
the purpose of having gca enough to redeem United
will dare issue either of those species Of bonds.
even if the law permitted him TO do IT, 49,.
not one but two Attorney Generals have taken a
different yiew and have hed mat has, tn
Mr. Shcrman-I think not nave not seen any
Of those opinions
Mr. Blackburn-It is generally unde rso3d that
the Acknowledgement held in Secretary Fosters
sherma3Xo Secretary has dared to So exercise
been sold except for the purpose for which they
Senator from Ohio. l deny that under existing
law the Secretary OF the Treasury has any such
ministraton OF Secretary Foster the tttorn'y-
General did not hold that the power TO sell these
bones existed.
POWERS OF THE SECRETARY OF TREASURY
situation: 1t is now stated on both sides Of the
Chamber that there is no power in the Secretary
Of the Treasury TO issue any Kind OF bonds. Even
il he had the power what Secretary would issue
now a thiryyear bond at per cent whe1 ne
attempted 10 sell bonds at premium NOBODY but
capitalists would be able 70 purchase them t mhey
could not be distributed among the people because
the people could not use them at all hereas
o he Sny S To run ' ser wh %
homes. That is the diihcuIty nave seen tah u,
States doing this thing or that thing in reference
to financial matters. The President Of the United
ton than any other citizen Of the United States.
The power to deal with money has always been
k' Mr. Butler b. S Dem. s. C-as the present secre
tary of the Treasury asked for the authority which
MIR sherman (hesitatngI-I would not like to
bs, hc does not ask can
Mr. Butler-if he has done 1t should be
Mr. Sherman do not know Of any record that
contains 1t. And should think it a very delicate
tempt to originate that idea. when Congress is
the proper authority to do So think the secre
tary OF the Treasury never volunteers ADVICE. Al
least / do know any case Of the kind.
Mr. Teller Rep. Col)-if there Is $50. de' iG,c,
for the secretary to address Congress UPON r.,
Fna mar COMMITTEE called on the Secretary Of the
Treasury for statement as to the deficiency ana
Mr.. Teller-Cannot the President. in the exercise
of the powers given to him under the Consu,tuuon
The country, make such recommendations as he
may deem proper! -. =, -
tions of finance are dealt with directly between
Congress and the Secretary OF the Treasury.
PROPOSITION FOR \ BOND ISSUE
After further discussion Mr.. Sherman sent to
the clerks desk and had read proposition which he
had drawn up, but which he did not offer II pro-
poses that to enable the Secretary of the Treasury
to maintain the parity Of all the forms OF money
coined or issued by the United States, and TO
strengthen and maintain the reserve in the Treas
ury authorized and required by the Resumption
act he shall from time TO time issue coupon
or registered bonds of the United states In de-
nomination of so and its mutiples mot exceeding
500 90 600, redcemabe In coin after three years
from date.
Mr. Sherman went on TO say that the fact OF the
Government having power 10 issue bonds to the
amount Of s200.0O.0o0 to maintain parity would
settle the question Of parity. Some such pro-
vision as that which had been read was undoubt-
edy necessary, and he trusted that his friends on
the other side would make some such provision
He feared very much that after a. little while:
and after the purchasing clause OF the act OF
1880 was suspended. people would find out
of the evils under which they had been suffering.
| and they would look upon the Senate having
provided an inefficient measured measure which
would not meet the exigency H. on the other
hand the Secretary OF the Treasury were armed
with the power he proposed. 1t would probably
| not be necessary to issue more than $JO,O0oooO