The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-02-02
NO 1Urnohrrr TO SER BONDS
sersssr Stewards Speech o. ths s-kisst ~
the sessts on Tuesday, Js.. SO.

NO AUTHORITY TO sEEB BONDS
s.-s,sr s,.v,srrs Speech o. tss s-Ni.st n
the sessts on Tuesday, Jss. so.
. Prov ~. Congregational R.rorS.
Mr.. Stewart-Mr. President I think Il quite
clear that there IL no existing law authorizing
the Secretary Of tho Treasury to issue bonds.
The Law referred to by him Ia his circular IL
the not Of Jan. IL. 1875. The last section OF
that act contains all the authority that vas
given to the Secretary to issue bonds and bur
coin for any purpose. 1t reads as follows:
,sIs an a. on and .i!,s The y. day q Jsnqa5n p
coin a.. In,ea s. 0 .a.ndsr ' hs.s h.n ou ~
s,snding on Their presentation Tor ttdempien a. The
city oit IL sum. 81 s9f ..s ,s. S' ssS
provide rsdsmpoa n tS. set .S,SorIs.i
or required he !. .u,ho;t,d % any surpla. rev
wise sppyoprstsd ana 10 is.a. eel, ana d.po.. ot a
me bond. n. tn ss s.c ias IL X.
sSSof the f.andns o. re- n .RSSsf d. sS
ne qualities priysges and exemptions to III. e1tsr:
III. proceeds thereof for the purposes storsssId'
That Is the authority given By the Resump-
ton act 1t was to use any surplus in the
Treasury. and II that were not sufflcisnt, to Is
sue and sell United States bonds and buy
coin to the extent necessary for the purpose
OF that redemption.
There was subsequent act which has very
important bearing upon the legal aspect OF the
question. 1t was passed on the 3lst day Of
May, 1878. and reads as follows:
THAT from and after the passage OF this sc, Il shah
the sd . sa. S3.9' no OF ' any . ssf
OF SAID notes may be redeemed or received into the
.S. Ssona 70 bc United s i Ssy sns Ss
Issued and paid oct G and ", sp ~ M I
provided thsi nothing herein mai PROMPTS The can
Issue Of other notes Of Ike in he stead.
oonnic, hsr."iSh are hereby fspssisS >'' u "''' "
The only language In that act which 10 at all
sufficient Is the statement that when the legal
tender notes are redeemed they shall be reis-
sued. and thereby It might be contonded that
II was the purpose OF the act to continue the
redemption; but inasm UGH as they are to be
reissued and kept in circulation there could be
no redemption in the legitimate sense. But
suppose It was the intention which Ia not
clear ut all. that when the legal-tender notes
are re- presented to the Treasury they should
be redeemed in coin suppose that construc-
ton can be given to the act OF 1873. which Is
certainly all that can be claimed for that act
then what Ia the power OF the Secretary? 1t
would be to sell bonds and buy coin to the ey-
tent necessary to provide for the redemption
OF the greenbacks which have been issued
that arc presented for redemption. The ques-
ton Is. II We admit that IL was the intention 10
continue TO redeem them, is there any neces-
sity for the sale Of bonds to provide for the re-
There is about SO. 900 900 Of gold coin In the
Treasury which is available for that purpose
and which would probably be more than would
bs required In a generation for all the green
backs that would be presented. Then there is
no present necessity whatever for tho issu-
lacks. Why should the national debt be In
creased for the purpose Of accommodating a
larger fund than now exists to redeem green
backs that will not be presented2
The resolution proposes to declare that Mt
lions. there is no authority to issue bonds. be-
cause there Is no necessity for larger fund
than new rex exists t. redeem This
viii read the law that the aTthofltg Ioss mot not
coin to redeem any enbacks that will be
presented In any reasonable time. When the |
dspression Of GSsnsss and When |, res IS SO tEG
cult to raise revenue by taxation sufficient to |
dens OF the Government be increased By an
issue o. interest bearing bonds to buy coin.
does not authorize the issuance except in case
I do not care about celebrating upon the
ment that no case is made authorizing tho |
Secretary to increase the nationa. debt He |
for the purpose OF carrying on the ordinary |
operations Of the Goyernment or to supply de- |
heiencies: Wee all agreed upon that. That
Congress has never auth orized the Secretary
rent expenses. and 1t is intinated that the
money obtained 10y the sale OF bonds may be
used for that purpose IL the necessity eNists |
for that purpose. IL is the duty OF Congress to
provide proper means for carrying on the Gov
eminent by raising revenue. The raising OF
trusted especially by the Constitution to the
other branch OF Congress. Even the Senate
has not the power to raise revenue and can IL
be contended that the Secretary OF tho Treas
ury can, without authority. issue londs with
out limit. as this would he II he eau issue bonds
TO carry on the GOvornmentP
! do not think that such a position can be
and when II Is known that no
necessity exists for more coin 10 redeem
groenbacks. and that the authority to issue
bonds was given Tor that and for 10 other pur-
pose. II seems TO me that We ought promptly
30 that the sense OF tho Senate mar be OK
pressed and the public shall not be misied To
Invest In these bonds about which there will !
be controversy ut least, because those who buy
these bonds with this law before them are not
purchasers IN good faith they do not buy
the equities which surround them; the law IL
before them, and they are presumed TO know
the law and the opposition in the country to |
the Issuance OF bonds and the Just Opposition
to increasing the national debt will be heard
sooner or later.
II seems 10 me that the entering upon this
system OF issuing bonds under the pretext
that IL IL done Tor the purpose o! redeemtpR |
greenhacks, when the real oblect Is TO carry ON |
the Government and supply deficiencies will
not be tolerated by the country. believe an
expression Of opinion ought TO be had In the
luton 20 be acted upon, and l shall say no
more or the subject at present.
Foreign Note. of Real In,.s..,