Evening star., 1894-01-30
THE BOND ISSUE.
Mr.. Sherman Severely Scores Those
Who Attack the Proposition.
NO QUESTION As TO THE AUTHORITY
Necessity for Preserving the Gold
Reserve in the Treasury.
PROVISIONS OF THE LAW

petition alleged to represent 10000
wool growers Of California, irrespective of
political party" praying against the reduc-
ton Of the duty on wool. was presented by
Senator Perkins of California
Senator Washburn of Minnesota presented
a petition of 5000 citizens Of st. Louis coun-
ty. Minn.. protesting against putting iron
ore on the free list.
Stewart Against the Bond Issue.
The resolution of Senator Stewart Of
Nevada declaring the proposed issue OF
bonds to be without authority of law was
taken up, and Mr. Stewart addressed the
Senate in its favor.
Senator Sherman Replies.
Senator Sherman followed Senator Stew
art, and criticised severely the attack upon
the credit Of the nation in the resolution
proposed by Senator Stewart, and also in
the speech Of Senator Allen. He said that
he was surprised that no one had risen to
sustain the administration in its attempt to
maintain the credit of the country. These
attacks, just as the bonds " ere about to be
issued, were serious, as it was apparent that
they would either prevent the sale of the
bonds or, If sold, compel sale at a greatly
reduced rate of Interest.
Senator Sherman said that the Secretary
of the Treasury had full authority to issue
the bonds. The Secretary Of the Treas
ury," said he, "has full power to sell bonds
to maintain the gold reserve. 1t is his duty
to do so. This is the first time in fifteen
long years that any one has denied that
power. 1t never has been disputed before.
1t is almost unpatriotic to question this
power at a time when the revenues of the
government are insufficient to meet the ex-
penditures 1t is a question that should be
above partisan discussion. l feel like stand
ing up for the honor of the country and for
the power of the Secretary of the Treasury.
The power to issue bonds In Just such a
contingency as has now arisen was given
py law In the strongest, clearest and most
direct language that could be used
That law and that power have stood un-
challenged and uncontradicted from that
day until few days since when resolutions
were introduced In this body denying The
authority of the Secretary of the Treasury
at time when bids were about to be is
sued"
The Provisions of the Law
Senator Sherman then proceeded to read
in detail the provisions of law on the sub
lect in dispute. and argued that their le-
gitimate construction was favorable and
even mandatory of the power now sbout
to be exercised by the Secretary of the
Treasury. To the fine distinctions that had
been drawn by some, he alleged that il is
not necessary to segregate a certain sum of
money from the great mass of the money
IN the treasury. 1t is expressly provided
that II the reserve should fall below SIOo,-
UoOWO then the government should issue
no more gold certificates. So that this
fund, this reserve. from the passa xe of the
law until this hour has been in the nature
OF a reserve fund. Il shall not now" said
he, go into the question as 10 whether the
Secretary of the Treasury had any royer
10 use this money for the current expendi-
lures of the treasury. That is a question
that should be taken up later and discussed
without feeling.
None but the wild theorist would main
tain or insist that the maintenance of this
reserve is not of value to the government
of the United States.
The Gold Reserve.
THAT fulcrum of So. 600 600 of gold upon
which our whole money structure rested
has been beneficial in every respect in
which 1t may be used. Until that fulcrum
was laid down upon the solid foundation
me United States notes. although the prom
ise OF the people to pay money, were below
par. The democratic party, now in control
of all branches of the government believed
that different form Of tariff law is a wise
public policy. They therefore seek to
preak down the law as it stands, which,
Whatever else may be said OF 1t, has fur
nisned until recently enough money To
carry on the operations of the government
You cannot impair and attack this pledge
TINS reserve for the redemption of limited
deficiency.
L greard the credit of the United States
government as safe in the hands of Grover
Cleveland and John G. Carlisle AS n n ue
IN the hands of a republican. When Won
otins ABOUT a situation of despair by a
cnahge or the whole revenue system then
you are bound, and not 1, to provide the
measures that are necessary to meet the
result of this legislation. e
But in the question that is now pending
i 1eel that We ought to defeat these resolu
tio.is ana tnat We ought to go further
ana vote affirmatively that the Secretary
OF the treasury has unquestionable power to
issue any of the kinds of bonds provided
Tor In the funding act in order to main
tain that solid reserve upon the security
OF which all our resources and all our
money rests"
AT the conclusion of Senator Shernan's
remarks Senator Quay (Pa) and dubois
Qdaho) introduced resolutions which kept
up the discussion, Senators Sherman and
Teller taking the leading part The reso-
iutions went over without action and the
election bill was taken up