New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-01

ard no does not pee.ess that power to-day And
there never has been time Ia tho history OF these
LEGAL tender Treasury notes whom no waa peesessed
et the rlish,rst power OF redecnlns them below
800 900 eco, There II no act OF Congress whioh ~
ary kind OF contor,lon can DO construed INTO d
conclusion OF that kinda conclusion which would
transfer tina. power over the fiscal Affairs OF the
Nation from conerc.a 10 the Secretary OF the
Treasury.
Mr. Villas dem. Wis., SAID that the tota! amount
Of gree,backs IN circulation at the time the Re-
compton act was passed was 6s,oooooo and he
asked Mr. Allen whether he contended that only
s75 100 900 OF that amount could be redeemed under
the Resumption act?
II have been contendng for that during the last
half hour" was Mr.. Aliens reply.
Then your contention is." said MIR Villas, that
the s5Ooc0 OF bonds that were issued at that time
were illegally issued-at least all Of them In ex.
cess OF So, 0OO.0OO?'
Not at all," Mr.. Allen replied. Il have made no
claim Of that sort. / may do so after while"
TO PREVENT THE REDEMPTION OF GREENBACKs
|. Mr. Harris Dem. Tenn)-Is your contention that
the of 1873 intended to prevent the redemp-
ton Of the legai-tender notes.-the greenbacks?
Mr. Alon-That is my contention.
Mr. Harris-I beg 70 suggest that the plain mean
ing OF the act, as conceive 1t. s that every note
when presented shall be redeemed. but not can
celled, and that 1t shall go back into circulation.
only sGeOO0O of greenbacks. The law OF 1875,
Interpreted and understood at the time by those
who framed It. that the 100000 900 would be re-
issued from time to time when redeemed Its only
effec; to make the of 1875 more clear
that point and establish the limit OF greenbacks
a S3i5GO.GO0 instead of $500. 10000.
Mr. Allen asserted that the law did not bear the
construction given to it by Mr.. Sherman and Mr..
Allison. Their understanding did not give any force
to the law. The Interpretation Of the law belonged
10 the Judiciary, not to Senators The Judiciary
had the right to interpret it, and the people had the
right to interpret II.
Mr. Allison remarked that Mr. Allen seemed to
be confounding redemption with cancellation. AS
10 the reserve fund he asserted that II II was in
the Treasury. 1t there for the purpose Of re-
deeming greenbacks. and for other purpose what
ever.
Mr.. Allen. referring to the reserve fund asserted
that l. was not the result OF any act OF Congress,
but of mere caprice Of Mr.. Sherman when he was
Secretary of the Treasury and that there was
nothing sacred about IT,
Mr.. liOar Uiep.. Mass spoke Of the question pre-
scented in the resolution as one OF the most M
poTant that could be raised. II seemed 70 him
that the action proposed to be taken by the head OF
the Treasury Department transferred to the Secre-
tary of the Treasury the entire constitutional power
states He liked to follow his honorable friend from
ONO tMr. Sherman) on financial questions; put ne
mat IN ms are sPreon snd sort n to '
vindication Of power which no other senators
Nebraska oMessrs Stewart and Allen). He did not
suppose that there 1(o intelligent men in the
tary to issue bonds 70 redeem The gIeenback cur,
r'ucy There was. Mr.. Hoar said. no question OF
have currency redeemed in coin texcep' occasionally
for export purposes was practically matter OF
Mr. CARLIsLE's INTENTIONS
But the Secretary of the Treasury. according to
statements made by him recently in New-fork.
proposed 10 the money to be Obtained from
bonds for the payment Of the current expenses Of
the Government. The Secretary lad offered 5000
600 OF bonds but had said the other day in New
York. that II 100000 he would accept IT, Now.
said Mr. Ioar, the Constitution declares thai. the
eminent IS altogether in Congress. and that there
shall be no payment Of money out Of the Treasury
except appropriation by Congress.
The sl1oy0Do acquired for the reserve lunI
has been appropriated by Congress 70 m; pnrpose
propriate.i And the application Of II 10 ptrposes
FOR which other new appropriate ton ras been
IL vas or nor e intsln'd IL IL seems U TO ms in o.
latlon the letter and the spirit OF the Con-
in my opinion the bonds issued and sod by the
Treasury Department. under existing circumstances;
~ ihe eravify Of the lSnguage which / use It
u a notorious fact that the proceeds Of the bonds
are 20 b" used for the current expenses or the
This was the first time in the history OF the
government when the Government was confronted
But there has not been a suggestion from the
administration that any measure Of legislation is
needed for the relief OF the Treasury on the con,
frary tho Secretary Of the Treasury in his annual
report the President being silent upon the sub
je.t-sIil that he estimated a probable deficiency
OF S2S co"o az the close Of the year. and that II
Congress concurrel in that view of the situation.
II would be incumbent It 10 make some pro-
vision for raising that amount by taxation or
Otherwise. This an express and clelr impli-
cation that without action by Congress. he had no
authority to use any portion of the proceeds Of the
Mr sherman suggested that the notice given by
tho Secretary of the Treasury In his annual report
sufficient warning TO Congress to DO It's
Mr Iioar-Tha, is what say.
Mr. Shorman-NerN well. why is not that done'
o2rmha i, aues HiInr w s q, my o hinqr
Der. Mt to me. Why IS Il not done?
Mr. ShcrmanYou and | and this side OF the
chamber have nor the power TO do h..
A Do-NoTHTNG MAJORITY
Mr. Hoar-Exactly. 1t is the duty of the Admin
istration and of the party in power And that is
precisely the point Of my complainr-that having a
clear majority in both houses OF Congress. and hav
ing six months warning Of the condition Of things.
the party now in power has not even framed or
suggested. or spoken Of any measure OF relief II
has framed tariff bill which has been very Justly
characerzed as farT Tor de n, Only ny, p not
lection And this condition Of things. going on for
by an Unconstitutional. nagran usurpation OF power
the part OF tho Administration That Is my com
plant. And my honorable friend from Ohio. in his
speech yesterday, dealt with an absolutely moot
question tnn having particle OF importance IN;
, stead or Gaining attention 10 the iilportint anu
vital and prominent question which this resol'i-
ton presents.
Mr. German Dem. MD though. that, under the
peculiar condition In which the Treasury found IT.
self Il was unwse and unfortunate To raise this
urcsflou al this time Nobody I'm either house
questioned the righ' OF the Secretary OF the Treas
lirv to issue bonds under the act OF 1919 for re-
sumption purposes. There was no question but that
IL was necessary at this time to relieve the Treas
urv Department. Personally he had believed that
tho Treasury was not authorized To sell bonds and
10 apuv the proceeds 10 any other purpose than as
provided in the act OF 1875. The Senator from ono
had ed
/ amazed and HstOnishci that no gentleman on the
Democratic side of the Chamber had risen TO the
defence of the action OF the Executive and had
stated his readiness To stand by such defence: but
further on in his speech he had sacritced ms
patriots to his partisanship. ,,
Mr. Hoar (itep., Mass) asked MT. German az TINS
point why there was not introduced on the Demo
cratic side of the chamber joint resolution or a
bin authorizing the Secretary OF the Treasury 20
issue bonds In that way the patriotism or the
Republican side of the chamber could be tested, ana
M, thought tha. the Senator from Maryland would
be graticd with the result.