The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-04-26

aScoinuioteu IN isfA ErsVSfatosy ~ re-
sumption, to redeem the e-eenbacks.
In the past week Secretary Carlisle has
been Obliged to encroach slightly upon the
gold reserve. and there IL; no doub. that
gold vii continue TO be exported for three
months to come. The payment CT bal
ances On merchandise trade will require
it, and bankers abroad who are hpating
the Austrian gold loan expect to ges what
metal they need in New York. Secretary
Carlisle has thus far declined to issue
bonds for gold to protect: his reserve, be-
cause there is question - to his au-
thority to issue bonds under the present
circumstances. The New York Sun points
out that even granting taat the resunp-
ton act Of 1875 is still IN force. under
which it 10 now proposed shat the govern
ment sell bonds to repie dish its gold re-
serve. there is no warrant in the act for
issuing bond made pay aple in gole.
Gold is not mentioned III the section OF
the act pertinent to TIM, present case.
Bonds issued under it must be payable in
''coin." and our deprecated silver dollar il
''coin" ~ well as the gold: dollar. The gov.
eminent could sell no bonds for gold
for the purpose Of protecting the reserve
unless they were made iyayabIe in gold.
The Sun holds that the resumption act Of
1875, 20 far as il touched the issue Of
bonds. related only to United States legal
tender notes then outstanding. We quote:
And on and after the frss day OF January,
1879, the secretary OF the Treasury shall redeem
in coin the United States kgcs tender Rotcs then
outstanding on their presentation for redemp.
ton. And to enaols the secrstsry OF
the treasury TO prepare and sroviie for the ~.
demption IN this act aus horistd md required etc.
The bond issuing power conferred on the
secretary IN this act 10 expressly limited
to cover the redemption ct the greenback
or legal tender notes then outstanding
to the amount of ab-ut $4,000. 900.
Under this resumption act bonds can
be issued by the secretary of the
treasury only for the purpose Of getting
coin ITO redeem or keep a. par so much Of
the legal tender notes Ct the character
specified as now remain outstanding. Such
notes are not the treasury coin notes il
sued on silver bullion; nor are they the
silver dollars and certificates issued under
the Bland act"
This 10 the argument Of the SUN, and 20
far as the resumption act 10 concerned it 10
conclusive. There 10 q further question,
however, whether the silver Law of 1890
may not be construed 10 confer such
power on the secretary of the treasury.
for it provides that the secretary
shall redeem the notes issued on silver
bullion in gold or silver soin at his discre-
ton and. further. that It is "the estab.
lished policy of the United States to
maintain the two metals on parity with
each other upon the present legal
ratio" It is plausib;y argued that
If the secretary fnos it necessary
to redeem notes In gold In order
to maintain parity. and ke has not got the
gold. that he 10 authorized under this
to get the gold. But Of course Secretary
Carlisle would prefer for time at least to
encroach upon his reserve rather than to
exercise under the questionable grant Of
the act of 1890 tho power to increase
the public debt and issue bonds. The
secretary would run serious risk OF CEN
sure BY congress. which culpably failed to
do its duty when at its last session it 70.
fused to enact the measure introduced by
Senator John Sherman. providing for the
issue Of q per cent shs,rt term bond to
replenish the gold reserve.
The secretary Of the treasury ought not
to have been left by conh ress to decide as
to his power to issue government bonds
to replenish his gold reserve. Senator
John Sherman thought the secretary
had this power. but he deemed 1t wise
to try to get a specific grant from
congress for Secretary Carlisle, and con.
gress adjourned without granting it. Tho
present situation brings into stronger
light the error of judgm mt committed by
President Cleveland in refusing To lis.
ten to those Democrats who urged
him to call an extra session of
congress. 1t is the business Of congress to
provide clear legislation for the present
situation. rather than force Secretary
Carlisle to decide whether he will con.
tinue to encroach upon his gold reserve
or to exercise a questionable authority