The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-23
Is THE BOND ISSUE LEGALLY
TIRE QUESTION UNDER DISCUSSION IN
1Bg SENATE

tag Treasury Notes were Rsdee-es.
WARRINGTON. Jan. 22-The resolution offered
last Thursday BY Mr.. PefTer tPon. RAM on the
subject Of the Issue OF bonds. declaring that
the Secretary OF tho Treasury had no lawful
authority for issuing or selling such bonds. was
laid before the Senate to-day. and Mr. PETER
spoke upon II. flo proposed, he said, to call
attention to a few fundamental propositions
and to review the state OF the law. lit we're
true that the Secretary Of the Treasury. acting
as the agent OF the President, was making a
new law. there could be no question but that
that was in violation OF the fundamental doc
trine Of the Constitution itself and 1t was to
that point he wished to call attention.
The provisions OF the act Of Jan. IL, 1875 tthe
Resumption actl. under which the Secretary Of
the Treasury was acting. were perfectly plain.
That act related. and was intended to relate,
to the redemption OF United states notes and
to nothing else. No authority was granted in
It to Issue bonds further than to meet the ne.
cessities OF the Resumption act It was GER
tain that the object Of collecting redemption
fund was for the sole and single purpose OF re-
deeminR such OF the legal tend notes as m light
be presented for redemption. That was all;
but the Secretary Of the Treasury. in his
notice. did not speak Of using the proceeds Of
which 0 ehS 81 the AT 81 Sp
i!y. There was nothing in the notice showing
that ne desired or expected to use the proceeds
act. But there was no emshi Tor the rejsmp-
ton Of greenb acks. and 4 there was. there was
IN Get that demand.
Mr.. Allen POP, Mo- asked Mr. rener
Guilty in the way. The act ofisI5 AUTHORISED
the Secretary OF the Treasury to redeem the
that provision having been complied with. had
not the act become functus oficll and ob-o
lete and had not the power to issue bonds I'M
"unquestionably." said Mr.. PETER. the SEN
letter TO the Chairman Of the finance Com.
mittee. In which he speaks Of the necessity OF
expenses Of tho Government and to preserve
the parity Of all forms Of United Statss cur;
permission Of Congress- to make good the doe
trtne OF the Republican platform. and OF the
shall be held " Of equal value d He ASKED hat
vide means for deirsyinG tho public expenses.
ernment obligations in ali quarters wholly
outside Of the ,prooSsions; authority and
tss csmea to ed DERIVE de autho9iy
Whence, Mr., PETER asked. came the clsmor
prey Of sp.cuisters and gamblers Vas he he
TrsSssSy s%S this To%sni III there was
1S Ishss soa and s' baIss.
which. according TO the platforms Of both par.
was aRa soo % enosS oe ss so1d
m on people. and It ought to be good enough |
for the b Uncommon people ,-, ....
EN- an ating from Henry Clews aud other New |
York bankers approving the action Of Secre- |
tion. made this issue OF nve per cent. gold |
bonds a, party question, the party would DO |
would deserve to DO. The gold that was to be |
obtained from those bonds was not he said. to |
fund fun Tor which Spectators 1iaht play.
Mr.. Allen asked whether there was any stat
Ut ute rsqGiring sl0 ntio in gold to be re-
no, sir" Mr, rerer replied. there is no
s9Sh Sw and If there her never o such Law
Tine then Secretary OF the Treasury Mr. shsr-
fund OF one hundred millions; Gut five or ten
millions would have been amply sufficient. II
have no doubt II viii q construction Viii T. be
given to the law such as l am now giving
Mr.. Allen said that there were a great many
ways OF avoiding decision OF the question by
me GoITss or Instance an ;appiicati1n for an
might be met with the suggestion that the
Secretary Of the Treasury was an arm q the
by an Injunction, he believed that the best
r.. ps
bonds, and then to ,enioin the payment OF
them thus taking the question out from
Mr.. Petfer read extracts from articles in New
ASSUMPTION Of bower ' to issue Soads b. the tic
10 OF b the Trssar sna ne sl1ssd his
hand, The PEOPLE will smite their enemy IN
teepth Century: and looking toward the dawn
OF the twentieth, see coming wave Of IRE
force on the sea Behind me 10 Rome ana be-
fore me God alone In His Infinite wisdom
:, Mr Allison rep, Ia spoke Of the $4,000
the TGsssury and h Gsia srp nfss
learning that there was any considerable |
amour! Of silver in the Treasury which va.
was impossible for the Secretary OF the Treas
Mr. Pefier said tina. the silver bullion pur-
chased under the act OF 1891 and which was
now in the Treasury. was all uncovered"
rcd. nj iion Of the notes issued to pay i for the
coined at s9ns sin sA and ND that T %ssn
While u was held as fund for the redemp:
,hst wa. ' nS, 9us .San there nets
millions OF silver in the Treasury which could
be used for current expenses.
The discussion this point was pArtlcl-
pnted in by senators Teller rep Col J. Mitch
II Her. Or German Dem, Nd and Platt
Carlisle had had the "S opinoa I until M Il wa:
changed by the, representatives Of New York
sssSorasS srss tSs GS there 20 ' Sas s
ysr enough in the Treasury to coin $50, OO0OUO;
that that was not held under Any law for any
purpose, but was dead capital and that II il
were coined. IL would repl"nish the Treasury
TO that extent. IL WAS not gold that was want
ed In the Treasury; IL was money. and any
money that would discharge the obligations %
The Government would answer its purpose Just
:, Mr., German defended the position taken by
NJ carlisle H and said that Mr. carlisle had
put further action hY Congress-
:, lir rlatI asked Mr: Tel! er whether, he held
That the Secretary OF the Treasury had author
~ To- coin the silver bullion in the Treasury
ME Teller replied that the Secretary had a
general authority TO coin bullion in the Treas
irV. There was provision In the act of 1sO
hat the ssigninTaRs was 10 be turned into the
Treasury a. an asset. II was to he used %
course and how could It bs used unless il was
'Oined3
At the close Of the discussion Mr. PETERS
esolutinn went over till tomorrow when Mr.
stewart Hen. New Is o. speak upon II
Then there was short executive session. !
md afieTWnrd. at $50 T. NJ. the senate ad-
burned until tomorrow.