The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-02-01
BONDS, NOTES AND POLITICS.

Yesterdays Discussion of the Financial
Situation in the Senate.
Washington. January 31.-The Vice
President laid before tine Senate today
Mr.. Stew arts resolution declaring that
the Secretary of the Treasury was not
legally authorized to issue and sell
bonds. Mr.. Allen, Populist OF Nebraska,
made an argument in response to and
contradictory of that of Mr.. sherman,
Yesterday. MIR. Platt, while ne WIS
speaking, asked: Is not the Secretary
of the Treasury. just as much pounu W
redeem treasury notes presented how' as
he was befOre?" g
Mr.. Allen" He is not, under any act Oh
Congress now i'll existence"
Mi. lien claimed that no existing act
of Congress by any kind OF contorbion
could he construed as empowering the
Secretary of the Treasury to redeem notes
below the limit of $500, 600, 000. he con
tended that the act of 1878 was lntenueu
to prevent the redemption OIL ieSdi oohuol
notes and greenbacks.
Mr.. Allison asserted that il the reserve
fund was in the treasury, 1T was tnere
for the purpose of, redeemlng green pachs
and for no other purpose.
Mn. Allen asserted that the reserve fund
was not the result of any act or congress
but the mere caprice OF Mr.. sherman,
when he WAS Secretary of the treasury.
MIR. Hoar. Republican of Massachu-
setts said Il seemed to him that the
actiou PROMISED to be taken by the heads
of the Treasury Department. transferred
to the Secretary the entire constlbutlon,al
power of borrowing money on tne
credit Of the United States. The hun.
bred millions required for the reserve
find was appropriated by Congress 70
that purpose alone and the application
Of If to purposes for which 1t was not in
tended. * Ia violation, both OF the lettel
and spirit of the Constitution itself. u
his opinion the bonds issued and SOLO bJ
the Treasury Department under existing
circumstances would be illegal an6
would convey no constitutional and law
full obligation. There had not been
suggestion from the administration tha
any measure of legislation was needec
for the relief of the treasury.
Mr.. German, Democrat OF Marylant
said there was no question but that Il
was necessary at this time to relieve tn'
treasury department.
Mr.. III oar asked Mr.. German why they
had not introduced on the Democratic
side of the chamber asjoint resolution !. o.
bill authorizing the Secretary OF tn'
TreasEr7 TO issue bonds.
After the question had been pressed
upoD hiGl, Mr.. German answered tina
under the latitude of debate allowed II
the Senate, there could be no action II
time to meet the difficulty, while thu
discussicl might be productive OF muci
injury.
The discussion then took polltlca
turn. the principal question being as t.
which political party was most responl
BILE for the deficiency in the treasury.
Mr.. Voorhees,, Democrat of Indiana
said: 1.-THE power to issue bonds j
ample, specific unquestioned and clear
If hereafter somebody should raise
question as to the use to be made of tn
money, it may then be considered.
hold with the Secretary, that he can use
this money in any way that seems t.
him proper and conducive to the genera
ton went over without action