The record-union., 1894-01-20
Alabama.
speciaI to the REcoRD-Ux1oN.

ment IS expressed among silver IneIH-
bers of the House against the gold clause
of Secretary Carlisles notice of the bond
sale. Representative Bland (Dem.) OF
Missouri says: "The standard silver dol
lar is full legal tender, and it can be
offered and received in payment for these
bonds. The Act under which the bonds
are issued provides that they shall be
payable in coin. 1t does not say gold
coin. At the time of the Act the stand
ard silver dollar was full legal tender, so
it must be included in the meaning of the
word COIN"
Some anti-siIver men take issue with
Bland on the point They say the bonds
are issued under the Resumption Act of
1875, which provides that bonds should
be sold for ''coin," but they point out
that before this, in 1913, silver was de-
monetized so it could not be included IN
the meaning of the word coin" Aside
from the legality OF the gold clause, the
silver men say il is against public poncy
to make public discrimination against
one OF the money metals now III use, and
the effect of the Secretary's action is to
tend 10 send gold coin TO premium and
disturb the parity between gold and sill
yer coins.
Representative Tracy Democrat) of
OF the House, said: Secretary Carlisle
wants no more silver, for he already has
in the Treasury much more than he
wants. What is needed is gold. IL is for
tunate under these circumstances that the
law allows him TO secure the particular
metal he wants, While the bonds are paya-
BILE in gold. Yet, IN selling them, the
Secretary has authority to secure pay
ments in any class of coin he needs, as
the express purpose OF that law was to
give means OF meeting the needs OF the
Treasury"
Some Treasury officials have theory,
which has been advanced several times
heretofore, and which is said to be shared
by some of those who have a hand in di-
recting the affairs of the department. 1t
is this: There actually exists funds that
can be properly termed gold reserve"
The so-called gold reserve" which
was created by Secretary Sherman
under the Act of 1875 has been entirely
wiped out by the redemption of United
States notes and Treasury notes, for which
purpose il was originally created. The
redemption of Treasury notes alone, 1t is
said, has been sufficiently large TO wipe
out the gold reserve, and the redemption
OF United States and Treasury notes to-
gether up TO recent period aggregated
$4,000, 600. This vast amount OF notes was
not retired, but reissued. If this theory
is carried to a legitimate conclusion, 1t is
held that the Government has not been
using the gold reserve for the payment of
>current expenditures, but merely draw
ing on its stock of assets represented by
gold. 1t is said certain figures bearing
out the deductions above referred to
have been prepared for the use of Secre-
tary Carlisle, and he will shortly issue a
statement on the subject.
KNIGHTS OF LABOR OPPOSE 1T.
PHILADELPHIA, Jan. 19.-The follow
ing was sent last night from the knights
OF Labor headquarters:
81. r. SOUerelgn, General Master Work
man. h. Of L.. DeS MONIES, ID: Secure
counsel to go before the United States Su-
preme Court Immediately and enter in
junction proceedings against Carlisle, re-
straining him from issuing fifty millions
of bonds. The interests of the people
upon whom the burden of all taxation
to pay the interest and principal of these
bonds falls, require you should immedi-
ately take this step against the Secretary
of the Treasury, enjoining him from in
curing further debt while the resources
of the Government, if properly applied,
are sufficient to meet all lawful demands.
John W. HAYES,
General Secretary and Treasurer"
Following was received in reply:
DEs MONIES, Ia, Jan. 19, 1894.
''John ". Hayes, SH NoTth Bro0d
Street: The case has been submitted to
counsel. If there are reasonable grounds
on which to force a standing in court in
junction proceedings will begin at once.
-. K. SOVEREIGN,
General Master Workman"
BANKERS MAKE BIDS.
WASHINGTON, Jan. 19.-Carlisle's mail
to-day brought a number of additional
offers to take the bonds. The prices of
fered are regarded generally as good, one,
it is said reaching 10.
A SYNDICATE TO TAKE THE BONDS.
NEW YORK, Jan. 19--It is understood
a syndicate of New York bankers are
preparing to offer the entire proposed is
sue of $50, 600 in bonds at Carlisle's
figures. Boston, Chicago and Philadel-
pbia bankers want show at them, how
ever. and to prevent them from overbid-
ding it is likely they will be admitted to
the syndicate.
WILL FILE AN INJUNCTION.
DEs MONIES Qowal, Jan. 19.-General
Master Work man Sovereign was seen by
an Associated Press representative here
tonight regarding the proposed lnJunc-
ton proceedings against Secretary Car
isle "It may be good deal like a
mouse tackling lion," he said, 'but we
are going to do il"
A petition praying for an injunction to
restrain the Secretary of the United
States Treasury from issuing bonds IN
the sum Of S0U,oUU,UuU, Or any OtH0I
amount will be drawn up here by Judge
Cole, sworn to by Sovereign, and sent to
Washington to be filed in the United
States Circuit Court of the District OF
Columbia the first of next week.
Tonight Sovereign sent a dispatch to
Senator Allen of \ Nebraska asking him TO
make argument in the case before the
court in Washington. Sovereign and his
attorneys deny that Carlisle has author
ity to issue the bonds proposed, claiming
that there is nothing in the law provid-
ing for a reserve fund of Slo0, 1000, 600; that
there is no provision in the law for any
snecial reserve as construed by the pres
ant government, and the fact that the
Secretary of the Treasury is offering for
sole a greater amount of bonds than the
so-calied legal reserve indicates that he is
not offering them for the purpose of re-
demntion, and it further shows that he
has not offered them for sale for any OF
the purposes specified in the law of jan
uary IA, 1870.
PROCEEDINGS IN CONGRESS.
prnnos,tfon to Put steel Rails on the
Free List Defeated in the House.
WASHINGTON, Jan. 19.-In the House
the report of the Committee on Elections
in the contested election case OF O'Neill
was presented and ordered printed.
Consideration of the tariff bill was then
resumed, the pending amendment being