The times. [volume] (Richmond, Va.) 1890-1903, 1894-01-31
SHERMAN ON THE BOND ISSUE
me Distinguished FiHanCisr Defends lie
Eslion Of Secretary Carlisle.
JuDcE COX DENIES TIE INJUNCTION
,-nyed for by the knights Of L"bor--sec-
rctary Carlisle says Al of the ff0pos'
cd Bouds VIII he Taken.

,,,.boot authority OF law. was laid before
,be Senate to-day, ana Mr. stewart spoke
in support Of il.
afr. Stewart argued that there was no
necessity for she proposed Issue OF Do"us'
and II the necessity did exist there was
40 authority in law for applying the pro-
cecds OF a bond issue 70 the genera" eA-
pcnses Of the government.
Mir. sherman Rcp.. o. regretted very
much that. pending a can for ioan' any
body should he found to question '"e
authority for &c.. unless the GROUNDS loi
such question were clear and undouD,eu' eu'
II seemed 10 linn that IL was hei'h.i
right cXpcdient. proper, or Jrsti'"Dle ~
make any assault Cu the credl1 on 'ne
government and on The power sought ~ !
lie exercised by the government" ii'
Nsouid say that IL was almost unpatfiouc
\, d1 SOL qt "a time when the revenues
az the government were plainly insuln-
,.Ionf to cover it's expenditures under ap-
proDriations made by law. Without re-
lard 10 rnrty feeling, he felt IKE Sl"Hu-
ing up for the honor OF the country anu
Tor The power proposed 60 DE tN'l'ase'
by the Secretary OF the treasury "S
resolution asserted that the Secretary haa
nance ,of specie payments. That was
simple proposition which could pe de-
cided yea on nay very quickly lie shouu
show that by the law as it now sloou
that power was given IN the cleartst'
strongest. and most direct language ihat
could be used by man-language that had
been used after a three-years' debate III
the Senate and HOuse-that had been
framed hy the ablest men in both bodies.
Al had stood unchalenged ana uncOntra-
dicted from that day until a few days
ago. when the senator from Nebraska
(Alen, P0pJ had offered a resolution de-
Yving the power OF the Secretary to eN-
ecute &c. And now" said Mr.. sherman
passiouateiy, "at the very time that the
bidders are preparing their bids for the
purchase OF these bonds. we are mot 10y
this allegation and this resolution on the
floor of the Senate, and 40 one has risen
So defend the power of the government
To- maintain its credit intact II seems 10
me. therefore, that 1 only do my duty
o. the public at large (of all parues) by
giving the exact condition of the law on
ahe subject, so that no one can question
50 0r gainsay it, The question is. Has
the Secretary OF the Treasury any power
to sell bonds for redemption purposes?
That is the only question
Ills Continuous Law.
Nir. Sherman proceeded thcreupon &C.
pl0te from the resumption act Of January
D. 1910, provision that on and after the
lst of January 1919. The Secretary Of the
Treasury shall redeem in coin United
States leeal tender notes outstanding.
r. their lrcsentatiOn at The Office Of the
Assistant United states Treasurer at New
York in sums rot less than So Mr.
Sherman repeated. and laid much stress
upon the words. "on and after" and de-
fined them as meaning "until water ceases
tsst.If Ia fa mil fl-l
Congress should change or moCify that
law. The plain declarat tion was. he said.
that it was q continuous law, and IL had
never been denied or questioned that Il
was a continuous law, and that 10 was
now an fun force. Under It, IL was the
plain and palpable duty of the Secretary
Of the Treasury TO redeem every United
States note presented. How? Not out Of
his own pocket. not by issuing some other
promise 20 pay. but the law went on
and provided that Ito enable the Secre-
tary OF tie Treasury 10 prepare and pro-
vide for the redemption In this act au-
thoTized and required, he is authorized
60 use any surplus revenue from time 10
time in The Treasury" showing said Mr..
sherman, that the thing is continuous,
mot otherwise Appropriated ana to issue
sell, and dispose Of. at rot less than par
in coin. either Of the description of bonds
described in the act' Che refunding acD.
"IhIs authority" Mr. Sherman went on
a. say "was conferred. and owing to the
continuance without change or alteration
from that day % this. not one word I'M
the law has been changed"
Then ne began to speak Of the reserve
ilnd and to trace its history. Here.
DE said, was fund created by tn,
sale Of bonds. The proceeds of that sal,
were 20 be held for no other purpose
Here Is another declaration made 81,
years afterwards-that If the reserve shal
ian below l0O0O0.OO0 then the Govern
ment shall issue no more gold certificates
because the issue OF gold certificate
would be an induCement TO the holders o
them 10 convert them into gold. SO tha
this fund from the beginning and from
the passage OF the law 10 this hour ha
been in the nature Of reserve fund
not 60 be taken Tor any other purpos
except what the law provides. This fun
remained intact until the 4th of March
1898, and for some time afterwards
How the Money should be spent.
'I do not wish TO go into the Questio
as 10 whether the Secretary Of the Treas
ury had the right 10 use any portion
the money for the purpose Of meeting
dcnciency In the Treasury. That IS
question which should be taken up here
after and discussed fairly and withot
temper. But that the fund is 20 be kei
intact fer the special purpose OF redemi
ton. / have sufficiently shown. The powt
of the Secretary OF the Treasury and h
duty are just the same to-day as the
were fifteen years ago The same law
in operation. and he is bound 20 excl
else this power whenever in ms Jult
mcnt. tie necessity for IL exists. n
sensible man who looks at the matter
the light OF reason. and as a mere bus
ness question tnOne but Wild theorists
would insist that the maintenance
this reserve Is not OF value 10 the Cover
ment Of The United States; that fulcruI
Of So, 900 900 Of gold on which our whol
money structure rests. has been benencii
IN every respect in which IL can be Yiewe'
In the first place. until that fulcrum wa
built and laid on the solid foundation {
our law, the United States notes mo
withstanding the promise of the peoD
70 pay them) were below par; and whe
she resumption act passed. our none
was worth only cighty-hve cents on n
dollar. In coin, and every day and ever
hour since this fulcrlm was made, ever
dollar OF our United States notes Is 9
GOOD as gold I'm every land Of the worl'
You NAV travel with these notes bearin
our sienct wherever the nag or con
mcrce floats. and every one OF ihcm Is q
good as gold"
Alr. Sherman went on 20 say ihai ne al
not believe that Il Is within tDc po"'
OF in the general line Of dnty oi ~
Secretary Of the Treasury 20 tahe 'i
money received from these bonds ana
apply IL 10 current expense lie o'