Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-17
THE BOND ISSUE
Opposition That is Likely to Be En-
countered in Congress.
GEN. HOOKER'S INDIGNANT PROTEST.
Democrats viii Assail the Admin
Istratlon for Its Action.
AN INTEREST COMPUTATION


The Congressman from the south and
west who have arrived Indicate very clear
ly their opposition to the policy of the ad-
ministration in the matter of the pending
bond call. Some have gone far as to
outline the ground of their opposition, and
to state that they intend to call the atlen-
tion of Congress to the matter at the earii-
est possible moment.
Gen. Hooker Indignant.
The sentiment of a great many demo-
cratic Congressman as to the bond issue is
we'll represented by the indignant protest
of Gen. Hooker of Mississippi. This issue
OF bonds" said Gen. Hooker rs a ietiance
OF Congress, and it seems to have been in
tended such. There Is nothing In the
financial situation, or in the cor iitiOn OF
the Ia easury Department, which made IL
necessary for the President to negotiate
this loan before the representatives of tie
people could assemble, and there would
seem TO be every reason why the repre-
sentatiyeS Of the people should be con-
suited about the matter. The fair con-
clusion would appear to be that the Fresi-
dent feared that his policy would be disap-
proved If submitted to Congress, and he
desired to assume this authority for him.
self at time when he could not be inter-
fered with
WIFI ASsatI the Admfnfst tfOn.
There can be no doubt that 1t is the
purpose of some of the democrats to assail
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 a new statute. The limita-
tions upon the use of the gold obtained
from the bonds under the resumption act
are such that the gold can only be used
to maintain the parity between paper cur
rency and gold and silver. Gold OBJ
tanned cannot be lawfully used for current
expenses.
The Authority for Them.
Those Congressman who are determined
to oppose the President make no conceal.
ment of the argument they intend to use
They say that the call for bonds distinctly
states that the call is issued on the author
ity of the resumption act of July II, 1875
The provision in that act applicable to the
issue of bonds Is this: ION and after the
1st day of January, A. d. 1879, the Secre
tary of the Treasury shall redeem IN coir
the United States legal tender notes theI
outstanding on their presentation for re
demption at the office of the subtreasurei
of the United States in the city of New
York in sums of not less than $50. And tC
enable the Secretary of the Treasury tC
prepare and provide for the redemption ir
this act authorized or required, he is au
thorized to use any surplus revenues from
time to time in the treasury not otherwise
appropriated, and to issue, sell and dispose
of at not less than par in coin either ol
the descriptions of bonds Of the United
States described in the act of Congress
approved July II. 1870, entitled An ac,
to authorize the refunding of the nationa
debt with like qualities. privileges ano
exemptions, to the extent necessary &c
biS or irfn fII11
the proceeds thereof for the purposes
aforesaid"
1t will be claimed that this law can only
operate when there is no coin in the treas
ury (sold or silver) TO redeem legal tender
rotes when presented; that, whenever the
treasury has coin sufficient for such pur-
pose. bonds cannot lawfully be issued.
Much less can bonds be issued under this
statute to obtain funds for current ex-
penses.
Real Object of the Issue.
To issue the bonds under this law for the
purpose of securing funds to defray the
current expenses of the government, which
is the real object of the bond issue, Will
be claimed as violation of the resump-
tion act To sell per cent bonds, more
over, at premium sufficient to make the
rate of interest 3 per cent, Is, 1T will be
maintained, usurpation of the powers of
Congress. 1t is an attempt to do by ex-
ecu.ive action that which Congress re-
fused to authorize 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
conditions which exist, is usurpation,
many Congressman say. by the executive
of the legislative power. 1t Is a substitu-
ton of the Presidents will for law.
This in outline. is the argument which
the democratic opponents of the President
intend to use respecting this bond issue.
And Ii Is said that Congressman Bailey of
Texas is prepared to proceed In this mat
ter Immediately upon the opening Of Con-
gress..
Interest on the Bonds.
AS an illustration of the kind of oppo-
sltion the President will encounter because
of the bond Issue, II may be stated that the
following computations have been made,
as an argument against the issue, by q
prominent democratic leader: The interest
upon this issue Of bonds will be one and
one-half millions of dollars per year, which
is one hundred ami twenty-five thousand
dollars month, and more than four thou
sand dollars day for ten years. 1t is an
amount equal to the salaries of three hun
dred members of Congress. This is at the
rate of 3 per cent year. The bonds will
bear per cent interest per annum, but the
SeIoetary will demand a price for them
THAI will make the interest Oh the sum
actually borrowed per cent. 60
e-