The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1894-02-08
A FINANCIAL DISCUSSION.
Tho Bond Issue the sole Topic In the
Ronata.

portions of tho Wilson bill, was o batch
from religious societies, asking that tho
tax on whiskey be trebled.
After the routine morning business,
the Vice President laid before the Sen.
ate Stewards resolution. declaring that
tho secretary of tho Treasury is not
legally authorized to issue and sell bonds,
and Allen (Pop,) of Nebraska, made an
! argument in opposition to that of Sher-
man yesterday, He denied the claim
enat the power given in the resumption
act was a continuing power, and said
tnaC the language of the act did not ius.
tily I2at construction 1t proved for a
s,ngle act of redemption and provided
.nat the Secretary of the Treas ui might
ISSUE sell and dispose of government
9onas Ior Inc purpose OF making the re.
uempllon contemplated by the act. ho,no
the surplus over $500 900 900 Of Trao'
sury notes, or abput'a75, 900, 600. Whan
that redemption was made, the incidsnt
OF power to issue bonds ceaaed with It.
! Tue debate took colloquial turn.% In
reply to the questions from Democratic
Senators. Allen held that 80 far as exlst.
ing legislation goes, the Treasury is not
low bound to redeem the Treasury
notes. that the Secretary of the Treasury
never had the power to redeem notes
below the 5000, 100000 standard, and
that he does not possess that power TO.
dav. And there never has been time
in the hi tory Of these legaltender notes,
when he was possessed of the slightest
power to redeem them below $500. 900. :
600, and that tho act Of 1878 was IN.
tended to prevent the redemption OF tho
legal tender notes.-the greenbacks.
Stewdrt came into the colloquy to say
that he held views identical with Allen:
| Villas said that the logical result of
Allen's and Stewards position is stthat
the $95, 900 600 of bonds that were Issued
at that time wore illegally iesued--at
least, all OF them In excess of S75, ,000,.
090."
Mot at ALL" Allen replied. II i.ave
made no claim Of that sort. I may do
so alter awhile"
Hoar said that in his opinion the bonds
issued and held by the Treasury Depart
ment under existing circumsta noes, will
| be illegal.
German thought it was uuwiso and
unfortunate to raise this question at this
time. Nobody IN either house ques-
toned the right of the Secretary to issue
bonds under the act of 1875 for redemp.
tiOn purposes.
There was no question but that it
was necessary at this time to relieve
the Treasury Department. Personally,
he had believed that the Treasury was
not authorized to sell bonds and to ap-
ply tho proceeds to any other purpose
than as provided In the acL OF 1875.
Mr.. Hoar: "Does the Senator think
1t lawful to use the proceeds of these
bonds to pay current expensesP Is 1t
not better to get way in the law to do
1T than to do it without law2"
Gorman-MY belief has always been
that the fund arising tcom the sale of
bonds can be used only as proylded 10
the act of 1875. We have inherited q
great many things from the other side,
and among them, an opinion fcom the
Attorney General of the last admins.
tration to the Secretary of the Treas.
ury that the money derived from the
sale of bonds was merged into the gen.
eral funds of the Treasury, with. the
right to use it for the general purposes.
50 that when we came into power, we
found this Gas I think) vicious precs-
dent, and wo, in the distressed condi-
ton of the Treasury, are not to be hold
responsible for following you in that
matter.
Voorhees,, chairman of The finance
committee, said that on one point he
was in harmony with Sherman; that
was his acknowledgment Of the power
OF the Secretary of the Treasury to act
as he was doing.
Daniel OF Virginia, asked Voorhees,
whether there was any purpose now to
issue bonds tor purpose Of redeeming
| greepbaCks.
Voorhees-The proposition TO issue
bonds concerns nothing but the author
lty of law-nelther affirming nor deny.
ing what use is to BIZ made of the mon.
ey, and take it that that cannot be in.
qnired into until after the money Ia
secured by the sale of the bonds.
Daniel-L suppose there Is no impro-
prlety in making an inquiry OF the head
OF the finance committee.
Voorhees--Certaiuly moi; say here
today; with ths nall reputation may
have here as a lawyer, that the courts
will hold that the Secretay ofLhe Treas
ury has thes absolute, unqualified power
to issue the bonds.
Daniel-Unlimited by the purpose de-
fined it the law?
| Voorhees-Unlimited by that purpose,
There is no purpse proclaimed.
Daniel-,Has the Secretary Of the
Treasury the right to Issue bonds with.
out entertaining the purpose to use them
solely 10 the line of the law?
Voorhees-Whenever the Senator
from Virginia finds that the Secretary
OF the Treasury is going to use this
money contrary to'his view, there will
be time for him to 60 to the courts and
restrain him.. hold, with the Secre-
tary, that he can use this money in any
way that seems to him proper and con-
ductive to the general purpose of the act
of 1875. .r.. .
HawleY, Republican, Of Connecticut,
closed today's discussion with an i'm
passioned arraignment Of the Democratic
party for mischief wrought by a proposed
change Of tariff laws at this time,
At the close of Hawley's remarks,
the bond resolution went over without
action until tomorrow, and after a short
executive session, at $3.50 adjourned un-
I'll t0morrnw