Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-18

tation upon the authority of the Secretary
of the Treasury to sell bonds for the pur-
poses OF redemption under this act, but
the proceeds derived from such sales can
not be used for other than redemption pur-
poses"
AS to the method of restoring the gold
reserve In case of depletion, the report said
In the absence of available surplus reve-
Eues by the redemption Of legal tenders,
the sum should be restored from the cur
rent coin receipts of the government not
revenues are transferred to the reserve fund
they are not subject to be used for any
other purpose"
For the minority Of the committee Mr.
Ray of New York filed their views at
length. reaching the conclusion, with 9TH
ers. not pertinent to the question at pres
ent involved. that the power to sell bonds
still exists, and is limited only by the
amount of United States notes outstanding
less the proceeds of bonds sold for that pur-
pose and applied or now on hand.
That the act contemplated a sale of bonds
from time to time in excess of immediate
need for redemption purposes, SO that an
available or reserve fund should be con-
stantly on hand.
no power to set apart, or reserve. or hold
as against appropriations made by Con-
gress or expenditures authorized by law any
part Of the surplus revenues OF the govern
ment for the redemption of United States
notes. He may use such surplus for such
purpose, but here his power ends
This report was made to the House July
6. 1892. and laid on the table.
Representative Tom johnson.
Representative Tom johnson Of Ohio
said that he did not especially like the idea
of an issue of per cent bonds but that
there was a necessity for the money and
he believed Ii much better to borrow the
money to meet a temporary deficit than ii
would be to fix a tax which would be prac-
tically permanent and which would pile up
surplus after the temporary strain had
passed.
There is no doubt at ALL" he said, about
there being sufficient revenue raised from
the revenue measures now under consider
atlon and 1t will be an easy matter to pay
on these bonds"
Representative McRae.
Representative McRae of Arkansas said:
Il am greatly opposed to the bond issue I
can see no need Of il so long as we have
$'ooOo.oOo of surplus silver in the treasury
which could be used. / believe that the
action of the Secretary is going to be un-
popular. Among my people IT will be re-
garded as disastrous"
Representative Tracy.
Representative Tracy said that he was in
favor of the issue of bonds Il should have
preferred" he said. Ito have had some
action by Congress giving the Secretary
the right to issue bonds with some ais
cretion, but the money had to be raised.
and thoroughly approve of the course
MI. Carlisle has pursued 1t certainly is
wiser ana more respectable for the govern
ment TO meet Its current obligations"
Representative Edmunds.
Mr.. Edmunds of Virginia said that he
was greatly opposed to the bond issue He
did not think there was any necessity for
1t. as long as there was a surplus OF silver
to draw on in the treasury.
Representative CatchfnRr.
Representative Catchings said that IL
would be Infinitely better IL we were In
such condition to render the issue of bonds
unnecessary. 1t would be much better IL
we could get along without but there APP
pears to be necessity which we cannot
avoid Mr.. Carlisle has given much more
attention to the matter than I have. and
he knows just what the condition of the
treasury is. / am perfectly willing to yield
to his judgment as to the necessity for the
issue of bonds and to sustain him In his
action.
Representative Bland.
Representative Bland said that he did
not believe that there was any legal au-
thority for the bond issue for the purpose
for which it seems to have been made
Moreover. he said. IL the legality of the
action was not in question there was no
necessity for II anyhow. There a
surplus of silver In the treasury which
could be rendered available for the current
expenses of the government. and II was
SUFFICIENT for the purpose. He could see
no excuse for increasing the public debt
while the government had money of its own
which could be used.
Representative Oates.
Representative Oates also opposed the is
sue of bonds. II do not like it at ALL" he
said Il think that the people In this eoun-
try are generally opposed to an increase of
public debt unless there is a great neces-
sity for it. and 1 do not believe that in this
instance such a necessity existed. To be
sure. money is needed. but there is no rea-
son why the surplus silver should not be
used. The purchase of silver has ceased
and IL may be accepted as settled that there
Is TO be no further increase of the silver
money in this country-for some time, at
least. But II certainly cannot be the pur-
pose of the administration to abandon the
silver we already have. This silver In the
treasury We have purchased. There is a
surplus there representing so much money
value. Do they intend to treat that as SO
much rubbish? 1t can hardly be conceived
that such a policy is to be pursued The
use of this silver surplus does not involve
or the continued coinage of silver 1t in
volves merely the question of using that
silver which We have already accumulated"
Mr.. Manderson's Views.
Speaking this morning of the notice of
Secretary Carlisle for the issue of bonds.
senator ManderSon of Nebraska said to "a
Star reporter, Il have merely noticed that
such a call has been issued. 1t seems to
be a necessity and the only way for the
secretary to meet the emergency of a
rapidly decreasing reserve. ! think IL is
too bad, however, that Congress has not
already come to the assistance Of the
Treasury Department by authorizing the
Issue OF bonds and such plans as that pro-
posed by Senator Sherman. In other words
L think there ought to be something in the
nature Of a popular loan, that is bonds. of
such small denomination, say muitipies of
$50. that the people of moderate means
might take them up as investment bonds.
These should be put on sale at the post
offices The people have today no chance
to reach good investment bonds for every
thing now outstanding is at a premium and
l fear that these bonds will soon be at such
a premium that the poorer people of the
country cannot get them. 1 think that
these bonds will be taken up and that they
will sufiice to meet this emergency though
doubt the expediency of such an issue
under all the circumstances
Jerry simpson ON the Bond Issue.
Said Representative Jerry Simpson today.
speaking Of Secretary Carlisles proposed
bond issue:
It's an internal outrage and inexcusable
There Is no reason why the administration
cannot tide over any embarrassment i'm the
matter Of revenue and expenditure without
paying interest on the loan How? BY is
suing g-eenbacks. the same as was done i'm