The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-31
SHERMAN ON THE BONDS
He Cites the Law TO Prove CaTliSle'S
Right to Issue Them.

Can be Used Only to Rsplenish the
Gold Reserve
Washington, Jan. 3O.-Numerous peti-
tions and remonstrsnces against various
features of the Wilson tariff bill were
presented in the Senate to-day, Among
them was one from the representatives
of GOO woolen goods manufacturers,
in twenty-six states and one
territory presented by Mr.. Aldrich,
rep, of Rhode Island), representing that
the passage of the Wilson tariff bill
would be greatly detrimental to the inter
ests of the country at large and disas-
trous to their particular industry.
The resolution offered yesterday by Mr..
Stewart, declaring that the proposed
issue Of bonds is without authority of
law, was laid before the Senate, and Mr..
Stewart spoke in support of it. Mr..
Stewart argued that there was no neces-
sity for the proposed issue of bonds, and
If the necessity did exist there was no
authority for applying the proceeds of a
bond issue to the general expenses of the
government.
SHERMAN PATRIOTIC.
Mr.. Sherman, rep, of Ohio, regretted
very much that, pending a call for a loan,
anybody should be found to question the
authority for it, unless the grounds for
such questions were clear and undoubted
1t seemed TO him that it was neither right,
expedient, proper nor justihable to make
any assault upon the credit of the govern
ment, and on the power sought to be ex-
ercised by the government. He would
say that it was almost unpatriotic to do
so at a time when the revenues OF
the government were plainly insult
ficient to cover its expenditures under APP
preparation made by law. Without re-
gard to party feeling, he felt like stand
ing up for the honor Of the country and of
the power proposed to be exercised by the
Secretary of the Treasury. The resolu-
tion asserted that the secretary had no
power to sell bonds for the maintenance
of specie payment. That was a simple
legal proposition which could be decided,
yea or nay, very quickly.
THE LAW AS CLEAR AS DAY.
He should show that, by the law as it
now stood, that power was given in the
clearest, strongest and most direct
language that could be used by man
language that had been used after three
years debate in the Senate and House
that had been frarqed by the aolest men
in both bodies. lb1Iad stood unchallenged
and uncontradicted from that day until
few days ago, when the senator from
Nebraska (Mr. Allen, pop) had offered q
resolution denying the power of the secre-
tary to execute it. "And now," said Mr..
Sherman, passionately. 'at the very time
that the bidders are preparing their bids
for the purchase of these bonds
we are met by this allegation
and this resolution on the floor Of the
Senate and no one has risen to defend the
power Of the government to maintain It's
credit intact. 1t seems to me, therefore,
that l only do my duty to the public at
large, of all parties, by giving the exact
condition of the law on the subject, so
that no one can question IL or gainsay it.
The question is: Has the Secretary of
the Treasury any power to sell bonds for
redemption purposes2 That is the only
question. "
THE RESUMPTION ACT.
Mr.. Sherman proceeded, thereupon, to
quote from the resumption act of Jan IA,
1875, provision that on and after Jan. /,
1879, the Secretary of the Treasury shall
redeem in coin the United States
legal tender notes then oustand-
ing, on their presentation at the
treasury or sub-treaSury of the United
States in New York, in sums not less than
$50. Mr. Sherman repeated, and laid much
stress upon the two words ''on'' and
"after," and defined them as meaning
until water ceases to rum and while
time lasts, " unless congress should change
or modify that law. The plain declara-
tion was, he said. that it was q eontinu-
Gus law. And it had never been denied
or questioned that it was continuous
law, and that it was now in fun force
Under it, it was the plain and palpable
duty of the Secretary of the
Treasury to redeem every United
States note presented. How?
Not out of his own pocket Not by issu-
ing some other promise to pay. But the
law went on and provided that lito enable
the Secretary of the Treasury to prepare
and provide for the redemption in this act
authorized and required, he is authorized
to use any surplus revenue from time to
time in the treasury-showing, said MIR.
Sherman, "that the thing is continuous
not otherwise appropriated, and to issue,
sell, and dispose of, at not less than par
in coin either Of the description of bonds
described in the act (the refunding act).
This authority" Mr. Sherman went on TO
say, was conferred, and was continued
without change or alteration, from that
day to this. Not one word in the law has
been changed"
THE RESERVE FUND.
Then he began to speak Of the reserve
fund and TO trace its history. Here,
he said. was a fund created by the sale
of bonds. The proceeds of that sale were
to be held for no other purpose. Here is
another declaration, made six years after
wards, that if the reserve shall fall below
800, ,000,000 then the government shall
issue no more gold certificates because
the issue of gold certificates would be an
inducement to the holders Of them to
convert them into gold. So that this
fund, from the beginning, and from the
passage Of the law to this hour, has
been in the nature OF a reserve fund; not
to be taken for any other purpose except
what the law provided This fund re-
mained intact until March, 1898, and
for some time afterward. | do not wish
to go into the question as TO whether the
Secretary Of the Treasury has the right
10 use any portion of the money for the
purpose of meeting a deficiency in the
treasury. That is a question which
should he taken up hereafter and
discussed fairly and without tenn
per- But that the fund is TO be kept
intact for the special purpose Of the re-
demption, / have sufficiently shown. The
power Of the Secretary of the Treasury
and his duty are just the same to-day as
they were fifteen years ago. The same
law is in operation, and he is bound to
exercise this power whenever. in his
Judgment, the necessity for IL exists. No
sensible man who looks at the matter in
the light OF justice, and as mere
business question none but wild thoO-
1iafal tsrnsalI frnf-t et.f 49,.