The Providence news. (Providence [R.I.]) 1891-1906, 1894-05-28
HITS CARLISLE.
The Bailey Resolution Against
Another Bond Issue.
Says Secretary Has no Right to Issue
One Under Present Laws.


WASHINGTON, May 28.-Representative
Bailey OF Texas, will again bring forward
his resolution questioning Secretary Car
Isles authority to issue bonds to
meet current expenses in case another
bond issue is determined upon. The
Bailey resolution excited much COM
ment when the recent issue OF $4,000
600 bonds was made, but failed TO have any
effect in checking the issue, as the bonds
were on the market before Mr.. Bailey was
able TO pilot his resolution through the
judiciary committee and get it be
fore the House. Now, however, Mr..
Bailey is preparing To move before
another bond issue Is undertaken. His
resolution is on the calendar and he says
he will endeavor TO call IL up on the first
intimation that official action In being
taken on another sale of bonds.
There have been reports that the rapid
disappearance of gold would necessitate
another bond issue at an early day.
but Mr.. Bailey will not move on
these unofficial reports. lie says the
resolution may be changed and strength
ened by being made a joint resolution,
and he expresses confidence that both the
Senate and House will pass IL il it can be
brought to "a vote.
The Bailey resolution is as follows:
Resolved, That il Is the sense OF the
House OF Representatives that the Sec
retary OF the Treasury has no authority
under existing law to issue and
sell the bonds OF the United States,
except such as is conferred upon him by
the act approved January a. 1875, entitled
"An act TO provide for the resumption of
specie payments" and that the money
derived from the sale OF bonds issued
under that act cannot be lawfully ap-
piled to any purposes except those speci-
fied therein.
The majority of the judiciary committee
NJ hp r-4Al+t4 at of hat
too clear for argument that the Secre-
tary of the Treasury was authorized to
issue bonds only to enable
him TO provide for the redemp-
tion authorized or required in that
act. Indeed, this is the very
as il is IL does not stop there. but in the
concluding part of that enabling section
there is plain limitation on the right to
issue bonds.
A minority report was made by Repre-
sentatives w. A. Stone, Ray and Childs.
it SAYS of the Bailey resolution:
"Whether this action is In good faith or
not, we leave for the members of the
majority TO decide"
1.-The bonds proposed to be sold are not
yet issued and the proceeds of a bond sale
are not yet in the treasury. The Sec
cretary has not yet violated any law
or misapplied any funds. He has
Ntiy octihitu tHhb tHt pTtStHl
condition OF the treasury is alarming;
that unless measures are adopted by Con-
gress to replenish the treasury, now
well nigh exhausted, the day is not
far distant when he must do one or two
things-cease to pay the obliga-
tions OF the Government, an
nounce that the Government of
United States under Democratic man
agement is bankrupt. or use any money
found in the treasury to maintain the
credit OF the nation"
The minority agrees with tAe- preposi-
tion that the proceeds OF bonds should
not be used for current expenses.