The Portland daily press., 1894-11-21
THE BOND ISSUE.
Opposition That is Likely to be En-
cOuntered in Congress.

va IN OVA5A WV
Gen. Hooker's Indignant Protest-Demo-
Gratis will Assail the Administration for
Its Action-An Interest Computation.
Washington, Nov. 20.-The congress
men from the Southland West, who have
arrived indicate very clearly their oppo-
sition TO the policy of the administration
in the matter of the pending bond call.
Some have gone SO far as to outline the
ground of their opposition, and
to state that they intend to call the at
tention of Congress to the matter at the
earliest possible moment.
The sentiment of great many De ~
cratic Congressman as to the bond i>~"e
is we'll represented by the indignant 20
test Of G. Hooker of Mississippi. "This
issue of bonds,n said Gen. Hooker, us Il
defiance of Congress, and it seems to
have been intended as such. There is
nothing in the financial situation. or in
the condition of the Treasury Depart
ment, which made it necessary for the
President to negotiate this loan before
the representatives of the people could
BILE, and there would seem to be
every reason why the representatives OF
the people should be consulted about
the matter. The fair conclusion would
appear to be that the President feared
that his policy would be disapproved if
submitted to Congress-, and he desired to
assume this authority for himself at
time when he could not be interfered
with"
There can be no doub that it is the
purpose of some of the Democrats to as
sail the administration for the new issue
of bonds. 1t is known that Secretary
Carlisle was very reluctant to have the
call issued under the resumption act of
1875, as was done last February. He
would have very much preferred explicit
authority from Congress in new statute.
The limitations upon the use of the gold
obtained from the bonds under the re-
sumption act are such that the gold can
only be used to maintain the parity be-
tween paper currency and gold and sill
yer. Gold so obtained cannot be lawfully
used for current expenses.
Those congressman who are deter
mined to oppose the President make no
concealment of the argument they intend
to use. They say that the call is for. bonds
distinctly states that the cali issued on
the authority of the resumption act of
July II, 1875. The provision in that act
applicable to the issue of bonds is this:
"On and after the LIST day of January.
A. d. 1879, the Secretary of the Treasury
shall redeem in coiu the United States
legal tender notes then outstanding on
their presentation for redemption at the
office of the. Su b-treasurer of the United
States in the city of New York in sums
of not less than $50. And to enable the
Secretary of the Treasury to prepare and
provide for the redemption in this act
authorized or required, ne is authorized
to use any surplus revenues from time to
time in the treasury not otherwise ap-
propriated and issued, sell and dispose
at not less than par in coin either for
the descriptions OF bonds of the United
States desert he'd IN the act of Congress
approved July IA, 1870. entitled An act
to aut horiZe the refunding OF the nation
al debt, with like qualities, privileges
and exemptions, 10 the extent necessary
to carry this act into full effect and to
use the proceeds thereof for the purpose
aforesaid
1t will be claimed that this law can
only operate when there is no coin in
the treasury gold or silver) to redeem
legal tender notes when presented !; that,
whenever the treasury has coin sufficient
for such a purpose bonds cannot law
fully be issued. Much less can bonds be
issued under this statute to obtain funds
for current expenses.
TO issue the bonds under this law for
the purpose of securing funds to idefray
the current expenses of the government,
which is the real object OF the bond
issue, will be claimed as a violation of
the resumption act. 10 sell five per
cent. bonds, moreover, at a premium
sufficient to make the rate of interest
three per cent. is, it will be maintained,
a usurpation of the powers CT Congress-
1t is AN attempt to do by executive ac-
ton that which Congress refused to au-
thoriZe the Secretary OF the Treasury to
do by law. The action of the Treasury
Department in calling for bonds for the
purpose intended, and under the condi-
lions which exist is surpation many
congressman say, by the executive of
the legislative power. 1t is substitu-
ton of the Presidents will for law.
This, in outline, is the argument which
the Democratic opponents OF the Presi-
dent intend to use respecting this bond
issue. And it is said that Congressman
Bailey of Texas is prepared to proceed in
this matter Immediately upon the opening
of Congress.
AS an ilIustl alton of the kind OF op-
position the President will encounter
because OF the bond issue, it may be
stated that the following computations
have been made, as an argument against
the issue, by a prominent Democratic
leader. The interest upon this issue of
bonds will be one and one-half millions
of dollars per year, which is $125, 600
month, and more than $4,000 a day for
ten years. 1t is an amount equal to
the salaries of three hundred members
of Congress- This is at the rate of three
per cent. year. The bonds will bear 5
per cent. interest per annum, but the
Secretary will demand a price for them
that will make the interest on the sum
nntuallu l,,rroxuad three per cent