The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-20
WILL ONLY CAUSE DELAY
Treasury Officials Do Not Think
the Scheme Can Succeed.
Mr.. Bland Objects to the Gold Clause of
the Proposal for Bids-TheOries
as to the Reserve Fund.

sent from the Knights of Labor headquar-
ters at Philadelphia last night, after con-
sultation among the officers in the the city,
to General Master Workman Sovereign, of
Des Moines. Ia:
Secure counsel and go before the United
States Supreme Court Immediately. Enter
injunction proceedings against Carlisle, re
straining him from issuing $JO,O00,O00 or
bonds. The interests of the. people upon
whom the burden of all taxation TO pay the
interest and principal of these bonds fall
require that you should Immediately take
this step against the Secretary of the
Treasury, enjOining him from mourning any
further debt while the resources of the
government, if properly applied, ale suf-
ficient to meet all lawful demands"
The dispatch was signed by John w.
Hayes, general secretary treasurer. The
following telegram from Mr.. Sovereign was
received in reply:
Case submitted to counsel. If there is
reasonable ground on which to force stand
ing in court, injunction proceedings will be-
gin at once"
When Mr.. Carlisle read the above dis
patch to-day he declined to say anything
whatever on the subject for publication.
Other officials of the department to whom
the dispatch was shown We're not surprised
on learning its contents. The feeling of the
Knights of Labor and of labor unions gen.
orally on the bond question was known to
be unfavorable as had been shown by the
passage of resolutions against it. The Off
cials were a unit in the opinion that the
Secretary had nothing more than a tempo
rary delay to fear from the injunction pro-
ceedngs and even this they did not think
in the least degree probable. The Secretary
consulted the Attorney general. the law Off
Ger of the government and the President
before issuing the bond call. Applications
for writs of Injunction or mandamus
against department officials are usually
made to one of the justices of the Supreme
Court of the District of Columbia. An ap-
peal from decision of the Supreme Court
of the District would lie TO the District
Court of Appeals. but in the ordinary course
of events could not be heard by the higher
court for several months. unless an order
advancing it on the calendar was made.
From the Court of Appeals the case might
be taken to the United States Supreme
Court. if the disbursement that unques-
tionably would be met by the enjOiners in
the lower courts did not cause them to
cease their efforts. 1t is believed no delay
would be occasioned by these legal proceed
inEs. even temporary injunction. doubt
less, would be denied.
The Populists of the House know nothing
Jerry Simpson says he will have no hand in
it. but would be glad if it were true.
Representative Culberson, chairman of
the judiciary committee, says there is no
doubt of the power of Secretary Carlisle
10 issue bonds or the purpose of the re-
Sumption sun act r The h general fid opinion among
ceedingS would have no standing in court.
THE GOLD CLAUSE.
Strong sentiment is expressed among the
silver leaders OF the House against the
gold clause of Secretary Carlises notice
of a bond sale. Representative Bland says
that it is the first time he has ever seen
an official statement declining TO accept
silver or any of the various forms of legal
tender and requiring payment in gold only.
The standard silver dollar is full legal
tender" said Mr.. Bland, "and it can be
for these bonds. The act under which 1.-The
bonds are issued provides that they Aall
be payable In coin 1t does not say gold
coin. At the time of the ACT the standard
silver dollar was full legal tender so
OF the word coin :"
Some of the anti-silver men take issue
with Mr.. Bland on this point They say
that the bonds are issued under the re-
sumption act of 1919. which provides that
bonds should be sold for Coin" but they
point out that before this in 1873 silver was
demonetized, so that it could not be in
ciuded in the meaning of the word coin"
Aside from the legality of the gold clause
the silver men say ii is against public pol
Icy to make public discrimination against
one of the money metals now in use. and
that the effect of the Secretary's action is
to tend TO send gold to a premium and TO
disturb the parity between gold and silver
coins.
Representative Tracey, one of the anti
silver leaders of the House, said: "Secre-
tary Carlisle wants no more silver, for he
already has in the treasury much more than
hn aofc hat 10 l..
fortunate, 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 Secre-
tary has the authority to SECURE payment in
any class Of coin he needs. as the express
purpose of that law was to give q means
OF meeting the needs of the treasury
Soine OF the Treasury Department officials
have a theory which has been advanced
TO be shared by some of those who have a
hand In directing the affairs of the depart
ment. that at this time there actually exists
no funds that can be properly termed the
gold reserve" The so-called gold reserve,
which was creaed by Secretary Sherman
under the act of 1875, they hold has been
entirely wiped out by the redemptions of
United States notes and treasury notes for
which purpose IL was originally created.
The redemption OF treasury notes alone. it
IS said, has been sufficient to wipe but the
gold reserve and redemptiOns of United
States and treasury notes, together. up TO
a recent period has aggregated $l49 900 OOO
This vast amount Of notes has not been re-
tired, but has been reissued. If this theory
is carried to its legitimate conclusion, il is
held that the government has not been
using the gold reserve for the payment of
current expenditures. but has been merely
drawing on its stock OF assets as repre-
sented by the gold. 1t is said that certain
figures bearing out the deductions above re-
ferred to, have been prepared for the use
OF Secretary Carlisle. and that he will short
" issue a statement on the subject
Secretary Carlisle's mail to-day brought
in a number of additional offers 10 take the
five-per-cent. bonds. The prices offered were
regarded generally as good one il is said.
reaching 10 The treasury officials expect
a great many more offers before long as
they say time enough has not yet elapset
for the circular TO have reached and been
posted in many Of the more distant cities.
The offers to-day. il is said. came entirely
from the East. and included firms and per
sons in Philadelphia, Boston and New York
Mr.. SOVereign's scheme.
DES MONIES, Ia, Jan. 19.-General Mas
ter Workman Sovereign was seen by a re-
porter tonight regarding the proposed in
junction proceedings against Secretary Car
Isle. 1T may be good deal like a mouse
tackling a lion," he said, but we are go
ing to do it. The petition praying for an
injunction TO restrain the Secretary of the