The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-11-01

Secretary Foster hold that the power for
the sale Of these bonds to make good
the deficit in the gold reserve Of $780,
| 900 600 existed"
Mr.. Sherman-''No secretary has dared
to exercise that power"
Mr.. Blackburn" / admit there has
been no exercise of that power. con-
cur in the opinion of the senator from
Ohio. I deny that the treasury depart
ment has any such authority, but the
question 1 asked was as to whether the
last Encouragement did not under the
administration of Secretary Foster hold
that the power to sell bonds existed
Mr.. Sherman-''That I cannot answer
because / do not know. II is now stated
on both sides of the senate that there is
no power now in the secretary of the
treasury to issue any kind of bonds.
Even If he had the power what secre-
tary would issue them2 What secretary
would dare to issue thirty-year bonds
running at per cent when he can Dor
row money easily at 8 per cent? If we
should attempt to sell those bonds at a
premium nobody but a capitalist who
looks long ahead as to the value of ac-
cruing interest would be able to purchase
them. They would not be distributed
throughout the country" MIR. Sherman
said he was tired of the newspaper talk
about the president of the United States
doing this and that in regard to financial
matters The president had no more
other citizen of the United States. From
the beginning of the government to 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 pewers. 1t
was the delegated agent of congress, the
secretary, who reported to congress di-
rect and not through the president
Mr.. Butler-"May / then inquire if the
secretary of the treasury has asked for
the authority which the senator is claim
ing he ought to have?'
Mr.. Sherman-'I would not like to an
swer that"
Mr.. Butler-''It must be public mat
ter
Mr.. sherman-'I DO not think he asks
for it. 1 can say he does not ask it,"
Mr.. Butler-"That must be a matter of
public record. If he has certainly he
should communicate it to congress"
Mr.. Sherman-"I do not know of any
record that pertains to the subject. 1
| should think it would be a very delicate
matter for the Secretary Of the treasury
TO attempt to originate that idea when
| the congress of the United States is the
proper place for it,
MIR. Teller Assists.
Mr. Teller-'would there be any i'm
propriety if the secretary thought it nee
essary to sell bonds on his part to ad-
that subject?"
Mr.. Sherman-"No."
Mr. Teller-'would it not be the proper
thing to do if he thought he ought to sell
bohds?"
Mr. Sherman-"The secretary never
volunteers advice. The senator may Sc
cure his opinion by a simple resolution"
Mr. Teler-"If there is a deficiency in
| 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.
under the constitutional provisions that
he shall inform congress as to the con-
dition Of the country, etc?"
Mr.. Shenandoah has been done;
perhaps the senator overlooked it. 1t has
| been done by the finance committee, call
| ing on the secretary of the treasury as
to the nature of the deficiency, how much
it is. etc"
Mr.. Teller-"Wbat asked was whether
the president could not under the power
conferred on him by the constitution to
| keep congress advised as to the condition
of the country make such communica-
| ton"
Mr. Sherman-"Undoubted he could.
But the senator who has been a cabinet
| officer is probably aware of the fact that
! III Questions Of finance are dealt directly
with by the secretary of the treasury.
| do not recall a single instance in which
| the president addressed congress. except
In his annual message, upon a financial
| question"
Mr.. Blackburn repeated his question as
| o whether the late encouragement had
not rendered a decision that power to
Ill
| matter had gone so far that plates were
engraved from which the bonds should
| be printed. He asked Mr.. Sherman if he
| did not know that was soI
| Il do not" replied Mr.. Sherman.
Mr. Blackburn-'I say do / will ask
| whether the senator from Ohio was con-
| suited at that time upon that subject?
Mr.. Sherman-"I was not"
Mr. Blackburn-'1 will say to the sena-
| tor that subpoena duces tecum served
| upon the superintendent Of the bureau Of
engraving and printing will bring these
| plates to this chamber within an hour -
Mr. Sherman-'I should think the COM
mittee Oh finance would be glad to see
| them"
Sherman's bond Proposition.
Mr.. Sherman continued his remarks
and sent up to the desk and had read a
proposition which he favored providing
for the sale of bonds. The proposition
was as follows:
That to enable the secretary Of the
treasury to maintain parity of all forms
| Of currency coined by the United States
! and TO strengthen and maintain the re-
| serve in the treasury authorized and
required by the act entitled, IAN act
to provide for the resumption of specie
| payment" the secretary of the treasury
| is authorized to issue from time to time,
as required for such proposes, in a sum
not exceeding In the aggregate $500. 000.-
| 600, coupon or registered bonds of the
| United States i'm such a form as he
may prescribe and of denominations of
| 500 or some multiple of that sum, re-
| deemable in coin Of the present standard
value at the pleasure of the United
States after three years from the date
| of their issue, and bearing interest pay
able semi-annually in such coin at the
rate of per cent. per annum. The said
bonds and the interest thereon shall be
| exempt from the payment Of all taxes
or duties Of the United States
as well as from taxation of any
| form or under state, municipal and
| local authorities, and the said bonds
| shall have set forth and expressed upon
| their face the above specified conditions
and shall with their coupons be made
payable at the treasury of the United
| States. The proceeds of such bonds
| shall be used for the purposes defined
| in this section and none other.
Mr.. Sherman expressed the hope that
| the senators in the majority would make
such provision as the one he had read