The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-31
SHERMAN DEFENDS THE BONDS.
Hut Says Their Proceeds Must he Used Only
for Redemption OF Greenback-.


for Redemption OF Greenback-.
WASHINGTON Jan. 30.-Numerous petitions
| and remonstrances against various features
OF the Wilson Tariff bill were presented in tho
Senate this morning and referred Among
them was ono from the representatives OF 800
woollen goods manufactures in twenty-six
States and one Territory presented by Nr.
Aldrich, Rep, H. L..
The resolution offered yesterday by Mr..
Stewart rep. Nev.l declaring that the pro-
posed issue OF bonds is without authority OF
law. was laid before the Senate. and Mr.. Stew
art spoke in support OF 1t. Ho would not. he
said. make any elaborate argument. because
the resolution was too plain for argument
Mr.. Sherman rep. ohio) regretted very
much that pending q call for q loan. anybody
should be found to question the authority for
II unless the grounds for such question were
clear and undoubtsd. 1t seemed to him that
it was neither right. expedient. proper. nor
Justi1able to mako any assault on the credit
OF the Government and on the power sought to
be exercised by the Government He would
say that II was almost unpatriotic to do so at a
time when the revenues OF the Government
were plainly insufficient to cover its expen-
ditures under appropriations may by law.
Without regard to party feeling he felt like
standing up for the honor Of tho country and
for the power proposed to be exercised by the
Secretary OF the Treasury.
Mr.. sherman quoted from the Resumption
act OF Jan. IL. 1875. the provision that on
and after the first OF January. 1879. the Secro-
tary OF the Treasury shall redeem in coin
United States legal tender notes then out
standing" &c. He repeated and laid much
stress upon. tho words on and after" and do
fined them as meaning until water ceases to
rum" and while time lasts" unless Congress
should change or modify that law. The plain
declaration was. he said. that IL was q contln-
uous law. Aud 1t had never been denied or
questioned that II was a continuous law. and
that 1t was now In full force. Under It It was
the plain and palpable duty OF the Secretary
OF the Treasury to redeem every United States
note presented, and the law went on and pro-
vided that. to enable the Secretary OF the
Treasury to provide for the redemption. he
is authorized to use any surplus revenue from
time to time in the Treasury" tshowinG. said
Mr.. Sherman. that the thing is continuously
mot otherwise appropriated and to issue. sell.
aud dispose OF. at not less than par in coin.
either Of the description OF bonds described in
the act" the Refunding act.
Mr.. sherman then went on to speak OF tho
reserve fund and to trace it's history. II was
created. he said. by the sale OF bonds. and re-
manned intact until March 4. 1893. and for
some time afterward.
10 not WlsD. ne Balu TO 60 into the
question as 10 whether the Secretary OF the
Treasury had the right to use any portion OF
the money for the purpose OF meeting def
cheney in the Treasury. But the fund was to
be kept intact for the special purpose OF re-
demDtion. No sensible man who looks at the
business qu sstion. would Insist that the main |
tenance OF this reserve Is not OF value to the
Then MIR. sherman veered into a discussion |
Of the existing condition OF affairs. and said: |
The democratic party. now Ia power. be;
be wise public policy. II therefore seeks to |
break down the tariff law which, whatever else |
may be said OF II. has at least furnished up to |
the first OF July last, enough money! to carry on
the operations OF the Government And now |
in our revenue. because people Will not buy |
goods when they may expect that In short
she 81 DUTY sH IL.
cratic side Of the chambefl to say whether or |
not this reserve. which has been the guide and |
maintained even In these trying times
do not believe that II Is within the power |
OF the Treasury to take the money received |
from these bonds and to apply II to current eN- |
other side that they must provide for the dell |
cheney in some other way than By tamperng |
purpose only. They must provide other fun,is
y necessary to make good any deficiency Ia |
sithsr n morss law TO mount 10 IN r Hauf
appropriations in excess OF your current rev. /
enus. You are bound either TO reduce your
expenditures to the amount OF your revenues, |
or else YOU are bound to super-add to your |
revenues some form OF loan or credit that viii |
gu cannot impair or takS the sacred pledge
OF gold in the Treasury pledged for the ro-
Tary or permanent dsheiencies You are
bound to provide other means.
to do sSspSthiRg that cam to sustain the S pu%
that Is desired, and that is clearly right and
wi
liberality and freedom as | would for any
measure OF a Republican Administration. ON
this pending question feel that We ought not |
Afirmatyely for a resolution that the ,SecTe-
power to issue any 81 the kinds Of bonds PRO,
yided for in the refunding act IN order 10
which all our credit and all cur money rests
Mr.. QUAY Rep, Pa offered an amendment
esiv"d isom boRds shall be sppiied only to the
redemption OF the legal tender notes Of the
United states presented at the sub-Treasury
Mr. Dubois ksp Idaho moved. as substl-
tpte for the resolution. the one reported IN the
on banking and Currency.
Mr. sherman remarked that he approved OF
authority Of the Secretary OF the Treasury 10
sell bonds for redemption purposes and DE-
should not be used Tor other purposes.
Mr. Teller Rep, Col. referred % the state
ing % Is that he Would paY into The Treas
ury 10. "a purposes Of redsnption q certain
portion Of the money received from bonds. and
would use the remainder Of Il for current eE-
psnsss. IL would be, Mr. Teller declared.
most uAssemly for the Goysrnment OF the
[ nited states TO issue it's bonds aud then sub
legality Or validity because the Secretary had
tenn plated ~ the law under which the
bonds we're Issued. Ia his own judgment.
II the Secretary had the power to issue
bonds for any purpose 1t Was not question
with the holders 0f them whether the Ssers- !