The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1894-11-29
THE BOND ISSUE.
WHERE IS THE AUTHORITY
FOR IT?
The Course of the President and Sec
rotary Carlisle Criticised-:s There
Law or Warrant for the Issue of
riore Bonds ?-Facts About the
Matter.
ATLANTA Constitution. !

by our readers if they will
give their attention to the following
summary Of the situation, which COM
pletely answers the claim that it is
necessary to issue bonds to meet the
current expenses of the government:
On March I, 1898, the net cash
balance in the treasury, exclusive OF
the gold reserve, was s24,12S,oS7, on
April 1st it was s25,65o,72S, on May
1st it fell to s24,471,573, on August
1st it was SIS, 6S4,634, on September
1st it was s11,274,7S7, and on Janu-
airy I, 1894, it had fallen to s9,4S3,-
o55. At no time during 1898, after
Mr.. Cleveland became President, was
the net cash in the treasury as much
as $4,000, 900, and yet the admins
traton, though importuned by the
New York bankers as early as March
and April, absolutely refused to order
bond issue at any time in 1898.
The official treasury statement OF
November I, 1894, shows IN the
treasury at that date, exclusive OF the
amount charged to the gold reserve, a
net cash balance of s45,97o,319, over
$40, 900, 900 more than in April and
May of 1898, when the administration
could not be made to see the necessity
of bond issue for any purpose.
Four months of this fiscal year
ended October 81, 1894. In that
period the treasury receipts were
S116,987,414, and the expenditures,
s131,341,273, an excess of expendl-
lures in one-third of the year OF
s14,353,S59. Should the excess OF
expenditures continue in the same
proportion for the remaining two
thirds of the year-which is altogether
improbable-the net cash balance on
July I, 1895, would be over ST.,
900 without selling bond or borrow.
ing dollar.
But there is no law authorizing the
sale of bonds 10 raise money TO pay
the current expenses of the govern
ment. The law under which Secreta ~
Carlisle is proceeding is the act o
January "a, 1875, "to provide for the
resumption of specie payments" Attel
declaring that on and after January
1870. greenbacks shall be redeemed
in coin at the sub-treasury IN New
York in sums of not less than $50, the
act says:
And to enable the secretary OF tn
treasury to prepare and provide for tn
redemption in this act authorized an
required, he is authorized to use an.
surplus revenues, from time to time
in the treasury not otherwise appro
priated. and to issue, sell and dlspos
of. at not less than par in coin, elthe
of the description Of bonds OF tn
United States described in the act {
Congress approved July IA, 1870, ent
tied s An act to authorize the retunt
ing of the national debit with lik
qualities. privileges and exemptions
| to the extent necessary to carry tn
act into full effect, and to use the pre-
| ceeds thereof for the purposes afor'
said.
Mr.. Carlisle proposes to sell bond
not for coin, as the law says, but tt
t gold only, and he will use the pr
. ceeds not only to carry this act IN
full effect" but to redeem coin not
which were not authorized until Ju
; IA, 1890, just fifteen years and
y months after the passage OF the r
sumption act. This policy is dout
r full enough without defending the ISIS
y on the ground that it is necessary
order to defray current expenses,
}, purpose neither expressed nor impl
y in the act of January "A, 1875, al
II necessarily excluded by the langua
j.. of the act itself.
= In the first session of the fiftyseco
Il Congress Hon. David B. Culbers
If submitted a report from the judicia
committee of the House upon a re:
y, luton of Mr.. Dockery, inqulrl
whether moneys arising from DO
y issues could be used for any purpo
other than those mentioned IN sect
% : of the act Of January II, 1875. l
report is concurred in by all the den
ID Gratis on the committee, and it ct
70 tains this language: "There is
Il limitation upon the authority OF
OH secretary of the treasury to sell boz
Ell for the purpose of redemption un'
to this act, but the proceeds derived FIR
49, such sale cannot be used for o.,
nd than redemption purposes.
no The five republican members OF
I'd committee disagreed on some OF
he matters, but in their minority rep
at on this point said: "That the o
re fund actually provided (and which
ms the reserve mentioned in the prov
he of 1900, for the redemption OF Uni
States notes is the proceeds OF DO
sold from time to time tor redempt
S. purposes, and that such proceeds r
be used at any time for that purp
y, but for no other"
,s;, The present judiciary committee
~ the House on January 29th
80 ordered a favorable report on r
bu, luton offered by Mr.. Bailey, of Tie
~. which is as follows:
So Resolrea. That it is the sense Of
~ House of Representatives that the
's' rotary of the treasury has no autht
a.t' under existing law to issue and sell
TN. bonds of the United States except
IS as is conferred upon him by the
The approved January IA, 1873, ent
''Au act to provide for the resumI
of specie payments" and that
money derived from the sale Of b
'oa' issued under that act cannot be
I'm fully applied to any purposes eS
those specified therein.