The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-12
THE EXPECTED ACTION OF CONGRESS-

The force OF the arguments l presented last
Monday. In favor OF applying TO Congress for
financial legislation. instead OF throwing upon
the Executive the responsibility Of assuming
doubtful and disputed powers, had evidently
already been considered and recognized by
President Cleveland. On the very day my arti-
Gle was printed here In New York HI announced
at Washington his intention to call an extra
session OF tho national legislature at the be-
ginning OF September, or earlier II IL should be
necessary. to deal with financial measures In
tho meanwhile. we are also assured on trust
worthy authority, he will not permit the sale
| OF bonds for gold. nor WIN he resort to any OF
the questionable expedients which. from time
to time his subordinates and others have sug-
gested for the relief Of the national Treasury.
This decision by the President removes all
necessity Of n further discussion OF the mean
ing OF existing statutes and Of what may or
may not be done under them. Having been
| enacted under other conditions than those
which now prevail. It is manifestly proper that
! Congress should have the opportunity OF re-
| considering these statutes and OF amending
or repeating them before recourse is had to
their provisions. Besides. the foolish talk
about what the President might and ought to
| do in the present emergency without the
sanction Of law. can be suppressed only by
public debate in the appropriate forum. A
largo number OF citizens. 1t would seem, en-
| terrain the idea that our Chief Magistrate Is q
sort OF Russian autocrat. and that his duty. in
| stead OF being that OF administering the law
| as it Is, Is first to make law by his own ukase
| and then administer It,
| 1t seems to be agreed on all sides that the
measure most urgently needed and the one
most likely to be taken up by Congress in adj
vance Of all others is the repeal Of the Sherman
act. To the operation OF this act is undoubt-
| adlv fo Ia oh ~ h. ~
from the country which has been going on
| since the beginning OF the year. and which is
| supposed to be the sole cause OF the present
| stringency OF the money market and all the
| financial ills resulting therefrom. The idea OF
| replacing the gold which has been exported
| with a fresh supply obtained by the sale OF
| bonds under the Resumption act has now. 1t
| appears, been definitely abandoned. notwtth-
! standing the positive assertions mnde only
| few weeks ago that the Secretary Of the
| Treasury could and would obtain gold in this
way. and notwithstanding tho depletion OF the
reserve Of gold in tho Treasury far below the
imaginary 500, 900 900 safety line. the passing
OF which, II was vchemently asserted. would
surely lead to q frightful financial convulsion.
Whether calm consideration has convinced the
Secretary that his authority to sell bonds for
gold is SO doubtful that it would not he snfe for
him to attempt to exercise It, or whether he
has been brought to see tho folly OF paying
away millions Of dollars In interest every year
for series Of years upon bonds sold for gold
which he could not keep ono year. is inmate
rial. 1t is enough that he and the President
both declare that bonds will not be sold and
that the only thing which the President spe-
officially Mentions for the consideration of Con-
gross Is tho merits OF financial policy which
obliges US to purchase idle silver bullion with
gold taken from the reserve" This clearly
indicates his wish for the repeal OF the Sher-
man act. and. since 1t is not accompanied by
any expression OF desire for legislation au-
thorizing the sale OF bonds for gold. it shows
his belief that the repeal will render such
eale unnecessary to the continued mainte-
nance Of gold payments.
Upon the other subjects affecting the fnan-
cial affairs Of the country to which referred
last Monday as demanding equally with the
repeal OF the Sherman act the attention OF
Congress and definite expression OF its pur-
poses in regard to them. namely the repeal OF
the tax State bank circulation and the re-
vision OF the tariff. the President has as yet
not declared himself All that is known so far
is that he intends to call Congress together by
the middle OF September or earlier. and to
urge upon 1t the repeal OF tho sherman act
Whether Congress will or will not repeal the
act. and IL it does repeal It. upon what terms
1t will do SO and after how long a delay
remain unsettled. Before any other business
can be undertaken the House OF Representa-
tives has to elect Speaker. and the Speaker has
to appoint the standing committees. This will
consume time and perhaps good deal OF
time. Then 1t Is uncertain whether the ma
jority OF the House favors repeal. or II it does
whether it is strong enough to put down tho
resistance Of the minority without making
concessions which will very much impair the
ben eilcial effect Of the measure. Then. again, |
the action OF the Senate cannot be predicted. |
All efforts thus far made to ascertain in ad- |
vance the views OF enough members OF either |
OF the two Houses to forecast the result have |
failed to show decisive majority for uncon- |
ditional repeal. or even for a repeal with con- |
ditions. There may be reversion to the old |
Bland Allison act. there may be a repeal of
the prohibitory tax on State bank notes. and.
for all We now know to the contrary, there may
be a bill passed for out and out FREQ coinage
Yet. notwithstanding this drawback the
mere announcement by the President that he
intends to call Congress together. three
months hence, and recommend il TO repeal
the sherman act. has had a reassuring effect
uron the public. 1t has quieted alarm and
inspired cheerfulness. and. coming us It did
after the first spasm Of depression had spent
its force 1t has slim ulated the usual reaction
from despair to hope. Any grent mental ex-
bpeeuliy wears !tSclI OUT. Inc In
con staucy Of lovers Is notorious: violent anger
quickly cxhausts itself: the more intense any
pleasure is the sooner it PALS: and 80. In
business affairs. panics and extreme depres-
slons are never Of long duration In the pres
ent case people are tired OF expecting disas-
tiers. and are getting back to their usual state
OF mind. The President has given them some
thing to think about and look forward to. and
they forget to be frightened.
For anything like tho speedy establishment
on stable asis Of our financial system there
does not seem to me to he much reason to
hone. The deiusion that an abundance OF
means an abundant supply OF money
10 every one who wants 1t Is still far too
to permit OF the putting upon paper
Issues OF the restrictions which sound prin-
ciple dictates. Our newspapers and periodi-
rals are full OF articles com planning that there
Ia not money enough In tho country to meet