The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-02-07
A FINANCIAL DISCUSSION.
The Bond Issue the sole Topic In the
Senate,

The Bond Issue the sole Topic In the
| Senate.
WASHINGTON, Jan. 3l.-Among the
numerous remonstrances presented this
mo,ning in the Senate against various
portions Of the Wilson bill, was batch
from religious societies, asking that the
tax on whiskey be trebled.
After the routine morning business,
the Vice President laid before the Sen.
ate Stewards resolution, declaring that
the secretary of the Treasury ls not
legally authorized to issue and sell bonds,
and Allen (Pop,) OF Nebraska, made an
argument in opposition to that of Sher-
mar! yesterday. He denied the claim
that the power given in the resumption
act was continuing power, and said
that the language of the act did not jus.
tlty that construction. 1t proved for
single act of redemption and provided
that the Secretary ofthe Treasury might
issue, sell and dispose Of government
bonds for the purpose OF making the re-
demption contemplated by the act, being
the surplus over 100000, 900 Of Trea-
surg notes, or about SIS ,000,0 When
that redemption was made, the incident
of power to issue bonds ceased with it.
The debate took colloquial turn. In
reply to the questions from Democratic
Senators. Allen held that so far as exist
ing legislation goes, the Treasury is not
Low bound to redeem the Treasury
notes. that the Secretary of the Treasury
never had the power to redeem notes
below the s300,OoO,O00 standard, and
that he does not possess that -, ser 10.
day. And there pever has been q time
in the hi tory ofthese leg altender rotes,
wien he was possessed of the slightest
power to redeem them below $500, ,000,-
600, and that the act of 1878 was In.
tended to prevent the redemption OF the
legal tender notes.-the geeenbacks.
Stewart came into the colloquy to say
that he held views Identical with Allen.
Villas said that the logical result of
Aliens and SseWart's position is ''that
the $95 900 900 of bonds that were issued
at that time were Illegally issued-at
least, all of them in excess OF 1875 ,000,-
090."
MOT at all.' Allen replied. II have
made NO claim Of that sort. I may do
80 alter awhile"
Hoar said that in his opinion the bonds
issued and held by the Treasury Depatt-
ment under existing circumstances, will
be illegal.
German thought it was uowisa and
unfortunate to raise this question at this
time. Nobody IN either house ques-
toned the right of the Secretary to issue
bonds under the act of 1875 for redemp-
ton purposes.
There was no question but that it
was necessary at this time to relieve
the Treasury Department. Personally,
be had believed that the Treasury was
not authorized to sell bonds and to ap-
ply the proceeds to any other purpose
than as provided in the sct OF 1875.
Mr.. Hoar: '.Does the Senator think
it lawful to use the proceeds Of these
bonds to pay current expenses? Is it
not better to get way in the law to do
1t than to do it without law?"
Gornan-My belief has always been
that the tund arising tom the sale OF
bonds can be used only as proYlded 10
the act of 1875. We have inherited a
great many things from the other side,
and among them, an opinion fcom the
| ATTORNEY General of the last admins
tration to the Secretary of the Treas
urY that the money derived from the
sale of bonds was merged into the gen.
eral funds of the Treasury, with the
right to use it for the general purposes.
SO that when We came into power, We
found this las I think) vicious precs-
dent, and we, in the distressed condi-
ton of the Treasury, are nos to be held
responsible for following you in that
matter.
Voorhees,, chairman of the finance
committee, said that on one point he
was in harmony with Sherman: that
was his acknowledgment Of the power
of the Secretary Of the Treasury to act
as he was doing.
Daniel OF Virginia, asked VOORHEES,
whether there was any purpose now to
issue bonds tor purpose of redsemlng
greenbaeks.
Voorhees-The proposition to issue
bonds concerns nothing but the author
ity of laW-nelther affirming nor deny
ing what use is to be made Of the moE-
eY, and take it that that cannot be in.
quired into until after the money ls
secured blythe sale of the bonds.
Daniel suppose there is no impro-
priety in making an inquiry OF the head
Of the finance committee.
Voorhees-Certainly not; say here
today; with the nall reputation may
have here as lawyer, that the courts
will hold that the Secretay ofthe Treas
ury has the absolute, unqualified power
to issue the bonds.
Daniel-Unlimited by ,he purpose de-
fined it the law?
Voorhees-Unlinitsd by that purpose,
There is 20 purpse proclaimed.
Daniel-Has the Secretary Of the
Treasury the right to issue bonds with
out entertaining tae purpose to use them
solely 10 the line OF thelaH?
/ Voorhees, es-Whenever the Senator
from Virginia fods 51as tae Secretary
OF the Treasury is goiag to use this
money contrary to his view, there will
be time for hin to 60 to the courts aad
restrain him. I hold, with the Secce-
tary, that he can use this money N aoY
| wav that seems tn him OrODer and con-
ductlve to the general purpose Of the act
of 1875.
Hswley, Republican, Of Connecticut,
closed teday's discussion with an in
passioned arraignment of the Democrauc
party for mischief wrought by a prop 1sed
change Of tariff Ia VS. at this tima.
At the close of aAwley's remarks,
the bond resolution went over without
action until tomorrow, and after short