The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-30
And Apply for an Order Restraining the
Secretary of the Treasury from
Issuing Bonds.
FINANCIERS DISTRUSTFUL
Mr.. Carlisle Holds a Conference
with New York Bankers,
And EndeavOrs to Persuade Them to
Subscribe for BOnds-His Mission
Not Wholly Successful.

WASHINGTON, Jan. %. - Arguments
were to-day heard before Judge Cox, of the
District Supreme Court, on the application
OF General Master Workman Sovereign and
t. b. Mcclure, OF the knights Of Labor.
for an injunction to restrain Secretary Car
Isle from issuing S50,0O,OO0 of bonds. pro-
posed in his recent circular. Judge Cox
served his decision and announced that to-
morrow or Wednesday he would state his
conclusion in the case.
Only a score of persons heard the argu-
ments The applicants for the injunction
were represented by Senator Allen, Judge
Jere Wilson, c. c. Cole, of Des Moines,
and j. w. Mills, of Denver, all of whom
took part in the argument. The court was
asked to compel Secretary Carlisle to show
cause why the writ asked should not be
granted. Judge Wilson, in opening the case,
referred to the fact that there was no other
judicial tribunal to which the applicants
had resort under the circumstances. He de-
clared that no other business would sus-
tain as much injury or damage by the bond
issues as that of the miners. who form a
large percentage Of the members OF the
Knights of Labor Though the Secretary.
in announcing that bonds would be issued,
cited the act Of Jan. II, 1885, providing for
specie payment resumption authority for
his action, neither this act nor that OF July
IA, 1870, authorizing the refunding OF the
national debt, conferred the authority.
Counsel Mills then read the application.
'.Tne issue OF the bonds as proposed" cited
the application, involves an Indebtedness
approximately of $15,000,O00, including prin-
cipal and interest. Your orators complain
that on Jan IL, 1884, the defendant, John
Griffin Carlisle, Secretary Of the Treasury,
caused to be issued, published and offered
for public subscription an issue of United
States bonds TO the amount OF SOOOO,V0e.
redeemabe in coin at the pleasure OF the
government after ten years from date OF
issue bearing interest at per cent per
annum, and dated Feb. ], 1894 Orators
further show that the proposed action for
the issuance and sale of bonds offered by
the defendant is Illegal without any au-
thority and contrary to the statutes OF the
United States, in that the bonds are not
proposed to be issued sold TO redeem
the legal tender United States notes.
Further, that by the act OF July IA, 1870.
there express inhibition on the
issue of any bonds so as 10 increase in any
way whatever the bonded debt OF the
United States. 1t is also averred that the
act of Jan H. 1875, was amended by that
of May 81, 1878, so as TO withdraw from the
Secretary of the Treasury the power to
redeem any more Of said legal tender
United States notes, and that there were
S346, ,000,0 900 of legal United States notes. IL
is further shown that there is no demand
now nor has there been practical possi-
sibility that demand will or can be made
for any further redemption OF the legal
tender notes.
offer for subscription is not only without
authority Of law, and contrary thereto, but
without necessity or sanction In the condi-
ton of the United States treasury, for there
is in the treasury $75,000,000 of United States
gold coin which may rightfuly and prop
for ey Which 1 the bonds and as oerd for SUB
scription, are proposed to be sold. Neither
the necessities nor conveniences of the gov
ernment requires issuance OF the bonds,
while such issue and sale are prohibited by
the laws. But now the defendant, combin-
ing and confederating with divers persons
at present unknown, at times pretends that
the issue and sale is necessary to maintain
a Sl00. 100000 gold coin reserve for resump-
ton other purposes, whereas there Is
no law or authority requiring such reserve
Nor is such reserve desirable or practicable
All of these actions and pretenses are con-
trary to equity and good conscience. And
that Injunction may issue against the
defendant, his confederates employees,
against issue and sale OF the bonds and
from expending public moneys in preparing
and placing on the market for sale the
issue of bonds, and in paying any INSTALL
ment of interest the principal, may =
please the court to grant unto your orato,
the writ to subpoena John Griffin Carlisle
and confederates and agents by GER
tain day under a certain penalty TO appear
before this honorable court in chancery
sitting. and then and there to answer the
premises, and further to stand TO and abide
such orders and DEGREES as shall be agree
able to equity and good conscience"
Counsel Wilson, in continuing his argJl-
ment. discussed at length the meaning OF
the acts of Congress bearing on bonds and
defining the Secretary S authority. He de-
clared that there was no question as to the
Jurisdiction of the court in the matter. and
urged that the Importance of the Secretary's
action demanded immediate judicial re-
straint
Senator Allen, who followed, referred to
the reserve fund as a mere caprice OF the
Secretary, who he said, was without au-
thority and absolutely powerless TO issue
obligations of the government. After the
arguments had been concluded Judge Cox
or Wednesday whether TO issue the rule
asked.