The sun., 1894-02-01
THE BOND ISSUE CONDEMNED.
SENATOR MOAN sAYS IT rs a FLA-
oRlNT USURPATION or POpER,

| Admiuistrs,ion, RnowisE the CouditIon OF
the Treasury. shoutd Have Applied TO
| Congress, witch Alone Hss the Power
90 borrow Morey for the Governu,ent.
wAsHINGToS Jan. RI. After the routine
morning business the Vice-President hid be-
fore the Senate Mr.. Stewards resolution de-
clnring that the Secretary OF the Treasury is
not legally authorized to issue and sell honds.
Mr.. Allen Pop, NebJ made an argument in
| response to and contradictory OF that OF Mr..
| sherman Yesterday He denied the claim th at
! the power given in the Resumption act was n
| continuing power. and said that the language
Of the act did not justify that construction.
| II provided for single act OF redemption aud
provided that the Secretary Of the Treasury
might issue. sell. and dispose OF Government
| bonds for the purpose OF making tho redemp-
tion conte m plated by tho act tbeinR the surplus
over 5000 600 900 OF Treasury notes. or about
$4,000. .0O0l. When that redemption was IN mad e
the incident OF power to issue tonds ceased
| with II.
| Mr.. plntt rep, Conu.)-Is not the Secretary
Of tho Treasury iuet az much bound to re-
deem Treasury notes presented now as he was
| before?
| Mr. Allen-No cir.
Mr.. Platt-Docs the Senator hold that II n
| Treasury note Is now presented the Treasury
| Is not hound to redeem IL?
Mr.. Allen-He is not under any act Of Con-
gross now In existence. When this $40 900. 900
was once redeemed the power Of tho lesunp-
| tion act was e1I ended.
Mr.. Allison REP. In docs the Senator
| maintain that under tho Resumption act OF
| 1870 II was only intended to provide for the re-
| Gomption Of $4,000. 600 OF greenbacks. and
that when that was done there was nm end OF
! the Resumption actr
/ Mr. Allen-My construction OF the Rcsump-
| tion act s this: That the only power conferred
by that act on the Secretary OF the Treasury
was to redeem the volume of legal tender notes
| outstanding on Jan. |. 1870. down to $500 =
| OOoOO0 and that his power to redeem them
stopped when he reached that point
| Mr. Allison-I think that the Senator misap-
prehends the purpose and policy OF that act.
| SO far as the redemption OF tho surplus over
$500 coo. 900 was concerned that redemption
| was to begin at once. Ii was not to wait till
| 1870 Then all tho surplus beyond 5000. 900
! 600 was TO DO redeemed at once and as fast as
| national bank note circulation was issued.
And II was to arrest that edem ption and retir-
ing OF this surplus that the act OF 1878 was
| passed. There was no change OF policy as
| respects the REDEEM ption OF those notes. except
| that the retiring OF them should stop at S348 =
0O0. 900 As against $500 100000.
Mr.. Harris tDem.. Tenn, asked Mr.. Allen
| what he understood to be meant by the words
| in tho act from time to time?"
Mr. Allen-The Secretary OF the Treasury
never had power to redeem notes below the
| $500. 00O.0O0 and he does not possess that
| power to-day. And there never has heen a
ury notes when he was possessed OF the slight
sst bower Of redeeming them below $500
UUO.OOu There Il no act OF Congress which
| by any kind Of contortion can be construed
| into q conclusion OF that kind "a conclusion
tho .cs aars tie @ ns,on from
to,iho Secretary OF the Treasury;
OOO;009 and he asked Mr.. Allen yhsther no
| could be redeemed under the Resumption act ?
have been contending for that during ths
Then your contention is." said Mr.. Villas
| that the SaJ.OuO,OOO OF bonds that were
isssf ali 10 Of % than inc excess srS Of SIS t
Not at ALL" Mr. Allen replied. Il have
made no claim OF that sort Imay DO so alter
MIR. Harris Dem. Tennis your contsu-
| tion that the act OF 1879 was intended to pre-
Mr.. Allen That is my contention.
meaning OF that act as 1, conceive 1t. is that
| avery note when presented shall he redeemed.
but not cancelled. and that it shall 20 back
Mr; Allison sdded that. the law Of 1873
"s u s sh' as G' and as
| the time by those who framed IT, was that the
s300.OOo.oOO would be reissued from time 10
make the act OF 1873 more clear on that POINT
and, ar, 70 to essabiish stab the unit Of grensEnbacks ut
Mr.. Allen asserted that the law did not bear
the constru"tion given TO II by Mr. sherman
give any iorca 10 tho law. The interpretation
| Of law belonged TO the judiciary, not TO sem
ators. The judiciary had the, right T. inter
n N
Mr.. Allison remarked that Mr.. Allen seemed
70 be conioundinG redemption with "ancella-
| tion. As to the reserve fund. he asserted that
II it wa. in the Treasury It was there for tho
other purpose whatever.
Mr: Allen, LelsrIins TO the reserve fund:
Congress. but OF a mere caprice OF Mr., Sher.
man when he WAS Secretary Of the Treasury.
Mr. mosr hep. Mass spofe Of 81 the i question
| presented IN the resolution as one OF the most
important that could he raised. II seemed to
The head OF the Treasnry Department trans, IS,
| ierred to the secretary OF the Treasury the
monsy on the credit ott tho United SfSies "'TI lie
liked TO follow his honorable friend from ohio
regretted mat, in, his a0le speech ye.ter-
day lao had devoted almost his en-
oa S srsnsS Bowen sRd wr siHr' no TO o1heT yG4
tors QUESTIONED except the Senators from No
ynda and rsDraska .Messr.i stewart and A.
teligent men In the country who Iuesti 1ned
ths power Of the Secretary Ia .issur bonds TO
redeem thsIsreenback CURRENCY There wa.
Mr.. HOar kAtd, no question Of TedemEtion ~
gTeenbacks because the desire tp have cur
r"ncy redeemed In coin Except occasionally
for export purposes WAS practically natter
Of the past But the secretary Of the Treas
UTy. according TO statements made Nv him re-
Gently In New iork propose To use the money
TO he obtained irnm bonds lnr the nay
HoSernment. oSS " TGS . Secretary % lad "' "ferrI II
S3nuOO.Ou0 OF bonds. but had sad the
other day in tNcw York that II NI5.WnunG
were offered lie would accept IL. Now said
Mr.. Hotr, the Constitution declares that the
power To borrow money nu he credit Uf ths IiOv-
eminent was altogether IN Congress. and that
there shall he no payment oG money out nf tho
Treasury except on appropriation by tonsress
The hundred millions acquired for tue re-
serve fund has been appTop opriated By Congress
In that purpuss and that puTIose alone. II Is
money in tue Treasury specIal ly appropriated
and the application Of II To purposes for which
no other new appropriation has been mAge. or
The application ot IL TO purposes for which II
nDf 1nIPndau : IN m IA