The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-02-01
THE PROPOSED BOND BILL
1t Affords Much Discussion
in the Senate.
Yesterdays Entire Session De-
voted to 1t.
Senator Hoar Attacks the Legality
of the Proposition.
Allen of Nebraska Also Disputes the
Secretary's Power in the Prem
tses-Alt the Bonds
Subscribed for.
BY the Associated Press

by tne AebOCldbtu IrcsS
WASHINGTON, Jan. 81. The entire
time OF the senate today war consumed
in discussion of the resolution by Stew
art declaring the secretary OF the treas
ury has no power to issue bonds for
which bids are invited.
After the journal was read the reso-
luton denying the authority of the
secretary of the treasury to issue the
proposed bonds came up. Allen OF
Nebraska took the floor to reply to
Sherman's arguments Of Yesterday. He
declared the authority to issue bonds
under the resumption act was not con-
tinuing power, and ceases with its first
exercise.
docs not the duty OF retiring three
hundred millions continue the same as
before ?' inquired Platt. SIS not the
secretary of the treasury just as much
bound to redeem treasury notes pre-
sented now as before the limitation OF
the redemption of those notes?"
mo, sir" replied Allen.
''Does the senator hold that if a
treasury note is now presented the
treasurer ie not bound to redeem it ?"
81 do" replied Allen. 'He is not,
under any act of congress now in exist
ence."
Stewart confirmed Aliens statement,
and said the only intention of the act OF
1875 was to redeem $4,000, 900 green
backs, and that was the extent OF the
power given by the law.
Allen. in reply to question by ALI
son, said the only power conferred upon
the secretary of the treasury was to re-
deem legal tender notes down to $500,
OOO, 900, and when they reached that
point his power to redeem ceased.
Allison replied: "The reserve Of $780,
00O, 900 il lying there now for the pur-
pose of redeeming greenbacks and for no
other purpose"
Allen maintained that the reserve
fund was a mere caprice OF tha secretary
OF the treasury and rested upon no au
thority derived from congress. The
secretary has power to destroy the re-
.ervs and use it for the ordinary pur-
poses OF the government.
Hoar then said II feel bound by my
sense of public duty to declare it my
! opinion that bonds issued and sold by
the treasury department under the ex-
isting circumstances will be illegal and
will carry no constitutional or lawful
obligation on the government for pay
ment."
German arrued that the Republicans
were responsible for the present con-
dition OF the treasury, but admitted
that silver legislation was in part re-
sponsible for the situation.
Sherman said the principal cause was
because the Democratic party had come
into power.
Voorhees, contended that there was
no question as to the secretary's power
to issue bonds, and any question OF the
expenditure of the money thus raised
was subject for later consideration.
He maintained that the secretary could
use the money both to redeem green
backs end to carry on the government.
Hawley said the success of the Demo
cratic party was responsible for the
falling off in revenue and the depletion
of the treasury.
The bond question went over until
tomorrow, ard at 5:25 the senate adj
| journed.