New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-31
MR.. SHERM1N TO THE RESCUE.
HE UPHOLDS THE AUTHORITY OF THE
SECRETARY To ISSUE BONDS
AN ABLE AND CONVINCING SPEECH BEFORE THE
sENATE-LEGAL STATUS OF TIE

AN ABLE AND CONVINCING SPEECH BEFORE THE
sENATE-LEGAL STATUS OF TIE
colo RESERVE.
| Washington. Jan 3o.--Numerous petitions AMI re-
monsirances against various features OF the Wilson
, Tariff bill were presented in the Senate to-day and
! referred. Among them from the repre-
sentatives OF COO woollen goods manufacturers in
/ twen;y-slv States and one Territory presented by
Mr.. Aldrich. Rep. Y. L.. declaring that the pas
sage OF the Wilson Tariff bill would be greatly det-
-a,ental to the interests of the country at large
and disastrous to their particular industry There
were also two remonstrances from California pre-
sentod by Mr. Perkins, ag INST putting wool the
free list. and from St Louis County. MINI.
| presented by Mr. Washburn). against putting iron
ore the free list
The resolution offered yesterday by Mr Stewart
! Gsep. New. 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,
lie argued that the Resumption net of 1915. under
! which the Secretary proposes to issue bonds.
sricted tho use of the bonds then authorized the
purchase of coin necessary for resumption purposes
Was there Mr. Stewart asked. any necessity for the
! sale ot bonds to provide for the redemption o
United States notes? There was now In me Treas
ury he said about seventy millions Of gold coin
available for that purpose. ana that more
than would probably be necessary for n generation.
There was, therefore present necessity for the
Issue Of bonds obtain coin to redeem greenbacks
He would not, he said make elaborate argu-
ment because the resolution was too plain for
argument
MR. SHERMAN TAKES TIE FLOOR
Mr. sherman Rep. Ohio, regretted very much
that. pending call for oan anybody. should he
found to question the authority for II. unless the
grounds for such question clear and undoubted
/. seemed to him that it was neither right cx-
pedient. proper. justifiabe to make any assault
on the credit of the Government and on the power
sough; TO be exercised ny the Government. He
would say hat 1t was almos, unpatrotic TO do
at time when the revenues Of the Government
plainly insuficien; cover its expenditures
under appropriations made by law. Without regard
20 parry feeling he felt Ike standing up for the
honor Of the country and for the power proposed
to be exercised by the Secretary OF the Treasury.
The resolution asserted that the Secretary had
power to sell bonds for the maintenance Of the
sumption OF specie payment That n simple
legal proposition which could be decided. yea
nay. very quickly. he should show that ~ the law
II stood that power vas given in he
cearest. strongest and most direct language that
could be used by man-language that had been used
after a three years debate in the Senate and House
that had been framed by the abest men in both
bodies L. had stood unchaienged and uncontra-
dicted from that day until n few days ago. when
The Senator from Nebraska (Mr. Allen. POpusD had
Offered resolution denying the power Of the Secre
tary execute II "And TOW" said Mr.. sherman
4
preparing the bids for the purchase OF these bonds
We are me by this allegation AMI This resolution
the floor Of the Senate. and no one has risen TO
defend the power OF The Government 10 maintain
its credit intact. 1t seems to therefore, that
only DO my duty to the public at large of all
parties, by giving the exact condition Of the law on
the subject. that can question 1t or gainsay
IT, The question H.: Has The Secretary OF the
Treasury any power to sell bonds for redemption
purposes? That is The only question"
THE srcEETARYs AUTHORITY.
MIR Sherman proceeded thercupon TO quote from
the Resumption ac, of January II, 1870 provision
that on ana aftc: the 1T OF January 1919 tn" Sec
retary or the Treasury shall rcIecm in coin United
States legal-tender notes then outstanding Oh their
presentation al the Office Of the Assistant Treasurer
Of the United States In New-York in sums not legs
than so Nj Sherman repeated and lai much
stress upon the words "on and AFTER nj d'hned
them as ireaning until water ceases 20 run and
while time lasts" unless Congress should change
or modify that law. The plain declaration was. he
said that II was q continuous law. And II had
never been denied questioned that 1t was cohtIhu
ois law. and that IT row in fun force nder
It 1t tie plain ana papable duty of tho Secre-
tary OF the Treasury to redeem every United states
mole presented. How? No; out OF his own pocket.
Not by issuirg some other promise to pay Iu;
the law went on. and provided that 10 enable the
Secretary o; the Treasury TO prepare ana provide
for the redemption In this act authorized ana re-
from time to tme in the Treasury" Showing. said
Mr. Sherman. that tho thing IS cOntinuousI mot
otherwise appropriated. and 10 issue sell ana as
pose Of at less than par I'm COIN either OF the
description Of bonds described in the act cine he-
funding acO.
was conferred. and was continued without chang
or alteration from that day 10 ms N"t one "oid
in .hc law has been changed.
Legal STATUS OF THE RESERVE FUND
Then he began to speak Of the reserve fund. and
70 trace its history. "Iiere." he said. was fund
created by the sale OF bonds. The proceeds OF mat
sale were to be held for no other purpose Here
is another declaration made six wears afterward-
that If the reserve shall fall below So0."OVO then
the Government shall issne more gold certih-
Gates, because the issue Of gold certificates would
bc an inducement to the holders TO convert them
INTO gold so that this fund from the beginning
and from the passage Of the law to this hour mas
been in the nature or reSerV" Iuhu I" W.
taken for any other purpose except what & ths law %
provided. This fund remained intact until the
in Of March @ ana for for ome ms ne n wNsiher
The secretary of the Treasury had the rlsht TO nse
any portion of the money for the purpose OF meet
ing 4 deficiency IL the Treasury 49,,
No sensible man who looks at the matter In the
hd ghe Si S vid theorists insist the main
of This is nea is oes noi si Tha cram OF
s,j go go OF gold which whole money struct
"[S Sc5 TeJs i can naS be- See ve%td In the rs place until
hat fncrn IN %as 1nr aw a the ' rnied i saes @ notes
Notwithstanding the promise OF the people TO pay
them were or 6TGw nohsv pa was % worh only S cents on
~ d@lI,r in coin And every day and every hour
sine ,his fucrum made every dollar OF our
SS!ni,cd States no,es has been good gold in
e,.erv land Of the world. You may travel with
,sorS rn,re hearing our siGnet. wherever the nag
ms ,n,nercc 0oats ana every OF them IL as
good gold
WHERE REaPoNsIBILITy HEsrs.
.1he dutv rests on the majority not only 10 stand
~, This ba asls OF our credit. but TO furnish every
o,hcr noons necessary to support the public fnth,
nn, o,ly ., its note-owners. but to all OF those
o,od,,ors who nave legal demands against II.
a., A., So, ho,ieve that Il il within the power In