The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-02-01
Mr.. Aliens Contention that the Act OF
1875 Is NugatOry Sustained by Sen
atOrs HOar and Stewart.
AN INTERESTING COLL0QUY
Remarks of Allison, German, AID
rich, Sherman and Voorhees,.
Carlisle Defended and Landed by the
Indianian-Bids for More Than Sixty
Millions of the Bonds.

of the Senate to-day was consumed I'm tbe
discussion of the resolution OF Senator,
Stewart, declaring that the Secretary OF
the Treasury has no power 10 issue the
bonds for which bids have been invited.
Senator Allen opened the discussion in sup4
port OF the resolution. Senator Hoar surs
prised some of his Republican colleagues
by sustaining the position taken by Senator's
Allen and Stewart, and Senator German
made a speech directed principally 10 re-
plying to the partisan structures OF Senator
Sherman on yesterday, but giving no ax-
preston of his opinion as to the authority
of the Secretary Of the Treasury 10 apply
the proceeds OF the bonds to meeting cur
rent expenses y long discussion followed.
participated in by Senators Aldr1ch, Sher-
man, voorhees, and others. The bond resos
luton went over without action until TO.
morrow.
When the bond question came up this
morning Senator Allen took the floor to
reply to the argument OF Mr.. Sherman.
1.-The Senator from Ohio said Mr.. Allen.
''in discussing this question, yesterday, said
that the power Of the Secretary OF thu
Treasury To issue bonds was a continuing
power, and that it continued until water
ceased to run and time ends. unless Cons
greSs shall change or modify IL by Iawl
That law does not permit this construc-
ton. 1t provides for single act OF re-
demption- 1t provides that he may sell
bonds for the purpose OF making the re-
demption mentioned in the act All through
the act, where the subject is referred TO. is
conveyed the idea i'm plain language that id
is a single redemption that is to be made
in this act. When that redemption was
made, the power TO issue bonds ceased wits
it. Whenever this government called in thu
excess of three hundred million OF OUT
standing treasury notes and redeemed ON
destroyed them the power TO issue bonds
ceased
Does not the duty of retiring the $780,
100000 continue the same as beforeT' In
quired Senator Platt. rs not the Secre-
tary of che Treasury just as much bound to
redeem treasury notes presented now az
before the limitation OF the redemption of
those nOteS?"
mo, sir" replied Senator Allen.
Does the Senator hc.d that IN treas
ury note is now preseEtea sths Treasurer is
not bound TO redeem it2'
Il do" replied Mr. Allen He is not
under any act OF Congress now in exist
ence"
Senator Stewart interrupted and confirmed
by his views the statement OF Senator Al
len.
QUESTIONS BY ALLISON.
do 1 understand the senators from Ne
vada and Nebraska to maintain inquired
Senator Allison. that under the resump-
ton act of 1919 it was only intended To
redeem or provide for redemption of So
100000 of the greenbacks. and when this
S75 100000 OF greenbacks were redeemed aE
the treasury it was the end OF the redemp-
tion?"
THAT is the extent of the power given by
the law insisted Senator Stewart
II desire 10 know" continued Senator Al
len, from the Senator from Nebraska, wha
has the floor, If that is his construction Of
the law under the original act2'
fhof cofH
Senator Allen, 81 desire TO ask the SENATOR
from Iowa a question. Is il not true thar
the power possessed by the Secretary of thu
Treasury must be such power as is con-
ferred upon him by statute?''
NO doubt about that" assented Senator
Allison.
Now, am prepared TO answer the Sena-
tor from Iowa My construction OF the re-
denption act is this: That the only power
conferred by that act upon the Secretary
of the Treasury was TO redeem the volume
OF outstanding legal tender treasury notes
on the first day of January, 1879. down to-
$5OO,OOOo0 and that his power stopped to
redeem them when they reached that point
L assert that, under these acts, constituting
them together, the Secretary of the Treas
ury never had power to redeem beyond
$500 100000 and he does not possess thag
power to-day Any other conclusion transs
fers the entire power over the fiscal affairs
of this Nation from Congress, where thu
Constitution vests il, To the unlimited and
unchecked discretion OF the Secretary Of
the Treasury"
-'Then your contention is," said Senator
Allison. that the $4,000 600 OF bonds which
were sold by the Secretary OF the Treasury
for the purpose of preparing for resumption
were illegally sold-at least, over the ex-
cess of $1,000 .OO0.''
Not at ALL" replied Senator Allen. II
have made no contention of that kind i
may after awhile"
''The plain meaning of the act of 1878. as
L conceive il" said Senator Harris, sis that
every note when presented shall be re-
deemed, but not that they must be reF
deemed-that may continue In circulation"
ra-E
affected only SO. 600 OF greenbacks. Thd
law OF 1875 is interpreted and was UNDER
stood at the time by those who framed IL,
that the 500, 100000 under that original act
would be reissued from time 10 time when
redeemed. The only effect OF the act of
1878 was to make the act OF 1875 more clear
and to establish the limit"
1.-The understanding OF Senators OF this
law does not give IL any force among the
people or with the coordinate departments
of thef government" retorted Senator Al-
!arhe reserve of $lOO.OOO.OcO is lying there
now" said Senator Allison, FOR the pur-
pose OF redeeming these greenbacxs. and Cor
..The reserve fund" said Senator Allen,
was a mere caprice OF the Secretary OF
this act TO which its creation was accred-
tied was passed. Ii rested upon no author
ity derived from Congress- upon no powcr
given by the legislative branch OF the gov
ernment. The Secretary of the Treasury
has ample power 10 destroy this reserve
government.
MIR. HOAR'S REMARKS.
At the conclusion of Senator Aliens
marks Senator Hoar took the floor. Il
feel bound by a sense OF public duty" said
the Senator, Ito declare that in my opin-
ion the bonds issued and sold by the Treas
ury Department under existing circum-
stances will be illegal and will carry no
constitutional lawful obligation on tbs
government for their payment"
Senator German then proceeded 10 argue
at considerable length To- show that the
Republicans were responsible FOR the ex-
listing condition OF the treasury lie, how
ever. took occasion. In reference 10 TIE
claim OF Senator Teller that the repeal or
the sherman law was responsible 10 sdys
! Il believe with the Senator from 'Vloraelo
that there Is much in Tie statement that
| the legislation upon silver ~ IN part re-
] sponsIble FOR the situation"
Senator AldTich interrupted 70 say tnat
| this threatened deficit. 10 which secretary
| Foster had referred, was caused 9 ne
| fact that the Democratic party was again