Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-31
DISCUSSING THE BOND ISSUE
An Exceedingly Interesting Debate in
the Senate Today.
Mr.. Allen ON the Power to Redeem
United States NOtes-Mr. Allison
and Others Participate.

The religious societies appear to be max
| ing a systematic fight on whisky and beer
and desire to tax these articles to such a
degree as to make them prohibitory lux
urtes.
Petitions this morning presented by Sena-
| tor Cullom Qll) and others pray that the
| internal revenue tax on these articles may
be trebled in the new tariff law.
The resolutions denying the authority of
the Secretary of the Treasury to issue the
proposed United States bonds came up, and
Senator Allen CNeb.) took the floor to reply
to the argument of Senator Sherman on
yesterday.
MIR. Allen Replies to MIR. Sherman.
1.-The Senator from Ohio" said Senator
Allen, 'fn discussing this question yester-
day said that this power of the Secretary
of the Treasury to issue bonds was con-
tinuing power and that it continued until
water ceased to run and time ends unless
Congress shall change or modify it by law.
That law does not permit this construction.
1t provides for single act of redemption
1t provides that he may sell bonds for the
purpose of making the redemption men,
| toned In the act All through the act
where the subject is referred to is conveyed
| the idea in plain language that 1t Is sim
| gle redemption that is to be made in this
! act When that redemption was made
| the power to issue bonds ceased with IT,
| Whenever this government called In the
excess of three hundred million OF outstand-
ing treasury notes and redeemed or DE-
stroyej them the power to issue bonds
ceased"
Does not the duty of retiring the three
hundred millions continue the same as be
| fore?" inquired Senator Platt (Conn.) is
| not the Secretary of the Treasury just as
much bound to redeem treasury notes pre-
scented now as before the limitation of the
| redemption of those notes?'
mo, STR" replied Senator Allen.
Does the Senator hold that II treasury
note is now presented, the treasurer Is not
| bound to redeem it,
II do" replied Senator Allen. He is not,
under any act of Congress now in exist
ence."
Senator Stewart CNevada) interrupted and
Sonfirmed by his views the statement of
Senator Allen.
Senator Allison's Question.
do understand the Senator's from Ne
| braska and Nevada to maintain" inquired
Senator Allison Qowa), that under the re-
sumption act of 1875 1t was only intended
to redeem or provide for redemption of
$4,000. 900 of the greenbacks. and that when
those $'5.O000o0 of greenbacks were re-
deemed at the treasury it was the end of
the redemption"
THAT is the extent Of the power given by
| the law" insisted Senator Stewart.
| lison, from the Senator from Nebraska,
| who has the floor if that is his construction
of the law under the original act"
Before answering that question:" said
Senator Allen, II desire to ask the Senator
from Iowa a question: Is 1t not true that
the power possessed by the Secretary Of the
Treasury must be such power as is confer
red upon him by statute?'
No doubt about that" assented Senator
Allison.
Now. 1 am prepared to answer the Sena-
tor from Iowa. My construction of the re-
sumption act Is this: That the only power
conferred by that act upon the Secretary
of the Treasury was to redeem the volume
of outstanding legal tender treasury notes
on the LIST day of January, 1879. down to
$3O0UO,00O, and that his power stopped
to redeem them when they reached that
point
Redemption of the Surplus.
II think the Senator misapprshends the
purpose or policy of that act" said Senator
Allison. "If the Senator will look carefully
at the act he will see that, SO far as the
redemption of the surplus was concerned
that redemption was to begin at once, and
not to wait until 1879. All the surplus be-
yond $3OO,O0O,OOO was to be redeemed at
once and as fast as national bank circula-
ton was issued. And it was to arrest that
redemption and the retiring of this surplus
of $500, 600, 900 that the act of 1873 was
passed. There was no change of policy as
respects the redemption of these notes,
except that the retiring Of them should
rest at $3i6.OOO,OO0 instead Of $oO,OOO,OOO, as
already provided by law"
Mr.. Aliens Assertion.
81 assert" maintained Senator Allen,
"that under these acts, constituting them to-
gether. the Secretary of the Treasury never
had power to redeem those notes below
1900 OOO, 900. and he does not possess that
a I'll,
in the history of these legal tender treasu-
ry notes when he was possessed of the
slightest power OF reducing them beyond
$500. 100000. More than that. there is no
act of Congress by any kind of contortion
that can be construed into a conclusion of
that kind. 1t is conclusion that transfers
the entire power over the fiscal affairs of
this nation from Congress. where the Con-
stitution vests it. to the unlimited and I'M
checked discretion of the Secretary of the
Treasury"
Mr. Allison on the Two Acts.
THE law of 1875" said Senator Allison
affected only $46WO.OOO of greerbacks
The law of 1855 is If terpreted and was IN
derstood at the time by those who framed
1t that the $30000e.e01 under that original
act would be reissued from time to time
when redeemed. The only effect that the
act of 1878 was to make the act Of 1875
more clear and establishing the limit"
THE understanding of Senators OF this
law does not give 1T any force among the
people or with the coordinate department.
of government" returned Senator Allen
1.-The reserve Of S1OU,uUU,UOO is lying there
now" said Senator Allison, for the pur-
pose of redeeming these greenbacks and TOR
no other purpose"
1.-THE reserve fund" said Senator Allen
was a mere creation of the Secretary of
the Treasury. 1t was created long before
this act to which it's creation has been
accredited was passed. 1t rested upon no
authority derived from Congress, upon no
power given by the legislative branch of
the government. The Secretary of the
Treasury has ample power to destroy this
! reserve and use it for the ordinary Dur
! poses of the government
Senator Hoar's Remarks.
At the conclusion of Mr.. Aliens remarks
Senator Hoar of Massachusetts took the
| floor. He said he came to Washington at
the beginning of this Congress inspired by
a desire to support the present executive in
all lawful and honest means to preserve
| the public credit, but he felt that that de-
! sire should not be INDUCED at the expense
| of the constitutional obligations we are
| sworn to discharge. He liked to follow the
Senator from Ohio CIr Sherman) on finan-
| cial questions, but he could not do so in
| this instance.
In the contemplated issue of bonds by the
| Secretary Of the Treasury there is no pre-
| tense of redemption Of greenbacks. and
vet that is the only DurpOse for ubfcb tho