Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-05-28
THE BOND ISSUE QUESTION
Representative Bailey Will Again Bring
Forward His Resolutions.
He Believes Both the House and Sem
ate Will Oppose a Further Issue
for Current Expenses.

Representative Bailey of Texas will again
bring forward his resolution questioning
Secretary Carlisle's authority to issue
bonds to meet the current expenses in
case another bond issue is determined upon
The Bailey resolution excited much COM
ment when the recent issue Of $4,000, 600
bonds was made, but it failed to have any
effect in checking the issue, as the bonds
were on the market before Mr.. Bailey was
able to pilot his resolution through the
judiciary committee and get it before the
House.
Now, however, Mr.. Bailey is prepared to
move before another bond issue is under
taken. His resolution is on the calendar,
and he says he will endeavor to call it
up on the first intimation that official ac-
tion is being taken on another sale of bonds
There have been reports that the rapid dis
appearance of gold would necessitate an
other bond issue at an early day, but Mr..
Bailey will not move on these unofficial
reports. He says the resolution may be
changed and strengthened by being made
a joint resolution, and he expresses conf
dence that both the Senate and House will
pass 1t If 1t can be brought to VOTE
The Bailey resolution is as follows:
Resolved, That 1t is the sense of the
House of Representatives that the Secre-
der existing law to issue and sell the bonds
or the United States except such as is
conferred upon him by the act approved
January the 14th, 1875, entitled An act to
provide for the resumption Of specie pay
ments, and that the money derived from
the sale of bonds issued under that act
cannot be lawfully applied to any purposes
except those specified therein
The majority report of the judiciary COM
mittee on the resolution states that Ii ap-
pears too clear for argument that the Sec
retary OF the Treasury was authorized to
issue bonds only to enable him to provide
Tor the redemption authorized or required in
that act Indeed, this is the very language
or the Jaw, and specific as 1t is 1t does not
stop there but in the concluding part of
that enabling section there is a plain linn
itation on the right to issue bonds
a minority report was made by Repre-
sentatives w. A. Stone. Ray and Childs 1t
says OF the Bailey resolution: whether
this action is in good taste or not we leave
for the members of the majority to decide
The bonds proposed to be sold are not vet
issued, and the proceeds of a bond sale are
not yet in the treasury. The Secretary has
not yet violated any law, or misappIied any
FUNDS He has very frankly declared that
the present condition of the treasury is
alarming; that unless measures are adopted
by Congress to replensh the treasury, now
well-nigh exhausted, the day is not far dis
tant when he must do one or two things
cease to pay the obligations of the govern
ment announce that the government Of the
United States under democratic manage
ment Is bankrupt, or use any money found
In the treasury to maintain the credit of
the nation"
The minority agrees with the proposition
that the proceeds of bonds should not be
used for current expenses.