The times. [volume] (Richmond, Va.) 1890-1903, 1894-02-01
THE BOND ISSUE AGAIN.
, ,oLLooUrAI AND PARTISAN DE-
B4TE ~ THE SENATE.
s.,.ors German and voorhees, pe'eno
secretary cariisie--rhe La''sr MAKES
N curt Reply to senator Daniel.

,,. tax on whisky be trcbicd
,fe.r "a. routine morning business, me
,-,e. .Presidcn; laid before the Senate MI
...o,rt,. resolution declaring that the
...retars Of the Treasury Is not legally
syihorized % ISSUE and sell bonds ana
AFR Allen Pop.. Neb.) made an arsu-
mont IN opposition to that Of Mr.. Sher-
.., Yesterday. He Gtnied the claim 'aat
,a. power given IA The resumption "c'
,.s a continuing power. and said tnal
.,. lanerase OF ine act did lot JUSTIFY
49,. ..,,,s,r,ctfon. 1t provided FOR "A single
,r, of redemption. ana PROVIDED ''"' W
Secretary o. .he Treasury misht 'SSu''
n md diy,.oss OF Government bonds iof
49,. ,,,,rooae OF making the redempuoA
,,,en,nisted by the act being the sur
,i,.s over NooOo0oj. Of Treasury no'eS' ''
,,ct e., e.l COS when that rcd,n puon was I
made m, Incident of power TO issue oonoS
ceased with IT,
A tonoquiai Debate.
The debate took n conoquim turn III
10 o., Questions from Democratic sen"-
80 MIR Allen held that so FAR AS eNist'ns
hesitation goes. the Treasury - i'o' ~" -,
hound TO redeem Treasury notes. uil"' ~
s,.r~otarv of the Treasury never hdu
..,.. ~, ,..,ieern notes below the S5OJ.OjOJvo'
and be does not possess that power to-uaS =.
Ara thore never has been time III i"o
history Of these lscnl tender treasury
notes when he was possessed OF the s'ds IT,
est power OF redecming them pe'oM >'y.,
ru.0D. And that the act Of 1913 was in,e'u,
e.l 10 prevent the redemption oil the lesai
tender notes-tbc greenbachs
ss, mat nc held views identical win MI
MIR Villas said that the logical result
of Nfessrs. Allen and stewart position
is that the Ss50ODO00 of bonds that were
issued at that time were illegally issueu -.
"a least an OF them in excess OF S'o,Vv,Vv.
.Not at all" Mr. Allen replied = nave
made no claim OF tnat SORT may w ~
after a while
Air Hoar argued that the use Of the
money proposed to be raised by the pohu
issue for the general purposes OF the 1oN-
crnment is entirely unauthorized ie0'
hound 10 declare" said Mr.. Hoar, lha' j,
an my oniniOn. the bonds issued ana helu
bv the Treasury Department under eAlsl-
mo circumstances, will be Illegal. ana VIII
convev no constitutional or lawful obhSa-
zion. sav that with Il full sense or the
Gravity OF the language which use
Mr. goi.nan thought that under the pc
cnliar conditions in which the treasury
tound itself. it was unwise, unfortunate
ana unfair TO raise this question at this
time. , 49,.
Nobodv iu either house questioned the
,tqht of the Secretary Of the Treasury 10
issue bonds under the act Of lSi5' Tor
resumption purposes. There was no
question but that II was necessary at this
fine TO relieve the Treasury department
PERSONALLY he had believed tnat the
Treasury was not authorized TO sell
bonds and to apply the proceeds TO any
other purpose thah as pf0'i"et an NV
act Of 1873.
Mr. uoar asked Mr.. German why there
,ras not introduced In the Democratic
side of the chamber joint resolution
or a bill authorizing the Secretary OF the
Treasury to issue bonds.
Mr.. German said that ne would answer
that question before he took his seat
rbe question was pressed on him again
and again. but the answer was TO the
effect that under the latitude Of debate
allowed i'm the Senate there could be no
action I'm time 90 meet the difficulty,
while the discussion might be produc-
tive Of much injury.
Responsibility for the Deficiency.
The discussion took q political turn, and
senators 0n both sides shared IN il. The
principal question was as 10 which politi-
cal party was most responsible for the
deficiency In the Treasury, Mr. German
claiming .hdt there was deficiency of
some hfty millions before the last ad-
minististiOn won't out Of Office. and Mr..
Sherman and ether Republican senators
arculng that the great trouble has been
caused by the Democratic attempt TO
cisngc the tariff.
Nir Sherman aakcd Mr.. German whether
Il WAS or was no true that the Mckinley
law produced revenue enough to support
the Government.
Mr. Germans answer was that when tie
democratic party came into power on tire
4th of March last II had to bear the bur-
lens which the Republican party had put
upon the country. by SIS revenue laws
aud by It's expenditures il had bankrupted
the Treasury before the Democratic party
came into possession of the Government
Mr. Hoar ~ would like to put my
question ia to the Senator l will put
81 an n duplicate form. FiIst. does the
Senator think IL lawful to use the pro-
ceols OF these bonds 10 pay current ex-
pcnses7 Second. is IL not better TO get
authority in law 10 do it than to do II
without; lawY
Mr.. German: "My belief has alway
been that the fund arising from the sal
of bonds can be used only as provided Il
She act Of lS1s We have inherited srea
many things from the other side, ant
among them an opinion from the AttoT
ncy-Gcncral Of the last administration
to the Secretary of the Treasury. tina
fho money derived from the sale of bond
Was merged into the general fund oi IN
treasury with the right to use IL FOL
general purposes. So that when we cant
into power We found this (as ! think
vicious precedent, and Ne. I'm the dis
tresscd condition Of the Treasury. ar
nof 20 hc held responsible for following
sou in that matter"
Mr.. Voorhees, chairman OF the Financ'
'0mmlttec said that on one point he wa:
in harmony with Mr. sherman: that wal
bis acknowledgement Of the power of th'
Secretary Of the Treasury "a act as h'
Was doing. He sent 10 the clerks desl
and had read Mr. Carlisies ncwspapc
fiatcment as 90 the House resolution ant
TO his own purpose.
senstor Daniels Interroe atories.
Mr.. Daniel Va) asked Mr. VOORHEES,
whether there was any purpose now I,
issue bonds for the purpose Of redeemine
grcenDacks.
Mr. Voorhees,: 1.-The proposition TO issu,
bonds concerns nothing but the authorit,
OF law. neither affirming nor denying
what use Is 10 be made Of the money
and I take II that that cannot be inquired
into untii after the money is secured bN
the sale Of the bonds The power 10 Issue
oon0s if ample. specific, unquestioned, ans
clear II hereafter somebody should rais'