The Providence news. (Providence [R.I.]) 1891-1906, 1893-02-18
POWER OF RESUMPTION
Authority Is Vested in the Secretary
OF the Treasury.
SECY. FOSTER SAYS NO BONDS.
The Project for the Repeal OF the sher-
man Act Has Apparently Been Absn-
doned by its Advocates In the House
of Representatives.

WASHINGTON, Feb. 1S.-The debate In
the Senate yesterday upon Mr.. Sherman's
proposed three per cent. five-y year bond
bill, to enable the secretary of the treas :
ury to maintain the parity between gold
and silver, II that should become neces-
sary, brought out some important facts.
Mr.. Sherman maintains, as he always has
since he was secretary Of the treasury,
that there Is ample power provided by the
resumption act to enable the secretary OF
the treasury to issue bonds for such q
purpose.
Mr.. Sherman avowed this in response to
direct inquiry from Mr.. German. Mr.
Sherman places the advsability of enact
ing this law on the ground Of economy.
lie considers IL very much to the advant-
age OF the government To issue a Ave year
three per cent. bond by this proposed law
rather than to require the secretary Of the
treasury, IL the emergency should demand
TO issue four per cent. thirty-year, or
four and half per cent. fifteen-year
bond. IL was on the ground OF this fact
that Vice President Morton ruled the
proposed amendment in order to tide the
sundry civil bill over the objection OF Mr..
Stewart OF Nevada as the leader of the
silver men, who have inicated their inten-
tion OF opposing Mr.. Sherman's ptan.
There Is no other reason why Mr.. Sher-
man Is anxious that their new authority
shall be conferred.
While Mr.. Sherman and her Ieminent
lawyers are OF the opinion that
There Can He No Question
that the power Is still vested in the secre-
tary of the treasury under the resump-
tion act to issue bonds for the purpose OF
maintaining parity between gold and sill
Of har la
this authority and maintain that the re-
sumption act cannot properly be so con-
strued. III the pending amendment TO
the sundry civil bill shall be adopted,
there can no longer be any dispute. The
passage OF this measure, therefore, would
remove all possible doubt from the situa-
tion.
Mr.. Foster, secretary OF the treasury,
has also made an important statement. Il
is that the sl00,000,000 gold reserve shall
not be Impaired for any purpose under
the administration, and that il it shall be
amount OF gold he will issue bonds.
That confirms the statement that the
President left the matter OF issuing bonds
discretionary with him. Mr.. Foster.
furthermore, makes the statement that il
Is his belief that he will be able to 60
through this administration without
selling bonds. The improved condition
OF the treasury within the last few days is
the basis upor which Secretary Foster
undoubtedly POUNDS this confidence. The
revenues have been increasing.
Secretary Foster makes the further sug-
gestlon, which will be very serious one
for the next secretary of the treasury to
consider. 1t Is whether or not, il he
should sell bonds for the purpose of OBJ
tanning gold to maintain the
Parity Between Gold and silver,
hecould obtain the. gold which he de-
sired. Secretary Foster points to the law
which authorizes the sale of these bonds
for coin; and he says the coin known To
the law Is silver as well as gold.
Mr.. Foster asked yesterday whether or
not If silver should be offered to him I'm
exchange for the bonds which might be
issued, he could refuse to accept silver.
His opinion was very emphatic that ne
could not refuse silver. 1t would be pos
sible, therefore, for the advocates OF sill
yer, ii they were so disposed, to combine
TO take up the proposed new issue OF
bonds by rendering silver coin, and the
treasury would then be no better off.
Mr.. Stewart, for that matter insisted
that no issue OF bonds was necessary. and
that an abundance Of coin is already in
the treasury for any purpose of the gov
ernment. He referred to coin as the
s6OO,OOO,O 900 OF silver coin now in he treas
ury, together with the sl0S, ,000, 900 OF gold.
The silver men have thus made it clear
that they will insist on the right OF the
government TO use the sl00,0O0,000 gold
reserve, and the 5000, ,000, 900 OF silver de- |
posted against the silver certificates shall |
be treated also as a coin reserve
In the House the advocates of the repeal |
OF the silver purchase act have practically |
abandoned their efforts. The House com. |
mittee on banking and currency yester-
day adjourned subject to the call OF the |
chairman, without having decided to |
make any further efforts for the repeal |
The adjournment, subject to the'call OF the |
undoubtedly means that there
will be no further meeting of the commit
tee in this Congress.