Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-02-01
made no claim of that sort. / may do 80
after a while"
MIR Uo,R'S OPINION.

money proposed 10 be raised by the BOND
issue for the general purposes OF the gov
eminent Is entirely unauthorized.
Il feel bound TO declare" said NIr. Hoar.
that In my opinion the bonds issued and
sold by the Treasury Department under
existing circumstances will be Illegal. and
viii convey no constitutional or lawful
obligation. I say that with fun sense
OF the gravity OF the language which 1
use"
Mr.. German thought tha. undor the
peculiar conditions In which the Treasury
found itself II was unwise and uniortu-
nate 70 raise this question at this time.
Nobody in either house questioned the
right of the Secretary OF the Treasury
TO issue bonds under the act OF ls1J for
resumption purposes. There was no ques-
ton but that IL was necessary ~ thls
time 20 relieve the Treasury Department.
Personally he had believed that the Irea-
sury was not authorized 10 SOL bondS
AMI 10 apply the proceeds TO any other
purpose than that provided IN TIE act OF
49,.
Mr.. Hoar asked Mr.. German why there
was not introduced on the democratic
side Of the chamber joint resolution or
iii authorizing the Secretary ~ the
Treasury 10 issue bonds
Mr. German said he would answer that
question before he took his goat.
The question was pressed on MIN again
and again. but the answer was 10 the
effect that under the latitude ot debate
allowed in the Senate there Coull be no
action in time to meet the difficulty. while
the discussion might be productive OF
much injury.
q WHEREFORE THE DEFICIT?
3 The discussion took 4 political turn.
nnl senator's on both sides shared IN II.
The principal question was as 10 whlch
political party was most Responsible Tor
the deficiency I'm the Treasury, NJ. Cor
man claiming that there was 4 deficiency
of some nfry millions before the last
administration went out of Office. and
Mr. Sherman and other Republican soma
tors arguing that the great trouble mas
been caused b. the Democratic attempt
To change the tariff.
NIr. sherman asked Mr. fo"nlan
whether il was or was not true tfAt the
Mckinley law produced revenre enough
70 support the government.
Hr. Gorman's answer was that when the
Democratic party came into power ON tue
4th ~ March last il had 10 bear the
burdens which th. Republican party had
put uDon. the country. by its revenue
laws and by its expenditures II had
bankruvted the Treasury before me
Democratic party came into possession OF
the government
Mr.. Hoar: | would like to put my ques-
tion again 10 the Senator. ! will put Il
I'm q duplicate form. First-Does the sen
ator think IL lawful 10 use the proceeds or
these bonds to pay current expenses
Second-Is il not better TO get authority
in law 10 do II than 10 DO II without
law
Mr.. German: Ny belief has always been
that IN. furl arising from the sai" oi
bonds can be- used only aS PROVIDED ln
the act Of 1873. We have Inherited Il Er'd,
many things from the other side, ani
among them an opinion from the Attor'
noy-Gcneral of the last administration.
given the Secretary Of the Treasury. that
money derived from the sale of bombs
MIGHT br merged into the general run
Of the Treasury with the right 10 us.
/ It for general purposes. 80 that When
We came into power we found this lds !
think viciJus) precedent. and We. in the
distressed condition OF the Treasury, are
not to bee held responsible for following
you in tha, matter.
Mr.. Voorhees,. chairman OF the nance
Committee. said that on one point ne was
I'm harmony with Mr. Sherman. ana tha'
was his Acknowledgement of the power
4
az he was doing lie sent To the ClerN
! desk and had read Mr. Carlisle's news
/ yauer statement as 10 the House resolu'
| ton and as to his own purpose.
MR. DANIEL.
Mr.. Daniel. Of Virginia. asked Mr.
| Voorhees, whether there was amy purpose
now to issue bonds for the purpose ot re
/ - ming grocnhacbs.
Mr.. Voorhees,: The proposition u isSu
! bonds concerns nothing but the authprlt
| OF law. neither afilrminS nor u'uy u.
what u.s. IS TO b. made OF the ilirn' y
| and | take Il that that cannot D. IN
| uiir.l into until after the money IS So
cured by the sale of the bonds. Ih
! uoucr To issue bonds is ample. Sp"clllc
un1uosti0nod. and clear. II her alto
roucLJlv should raise the question a
ID the use 10 be made or the mon - /
may then Doe considered.
Mr.. Daniel: / suppose there Is no I'm
proprictv I'm making irQutry OF ihe h'd
Of the Finance Committet.
Mr. Voorhees,: Certainly not J say h'f
to-day. with what small reputation ma
have as a lawyer. that tn courts 'i TN
country viii hold that ~" Secrrtdty %
the Treasury has the absolute, Inl"ili'.e'
power 10 issue tho bonds.
Nr. Daniel: Unlimited by the plii"a
d-fned in the law
Mr.. voorhees,: Unlimited by hat pur
pose. Ther' is no purpose procl mn
,lr Daniel. Has the secretary OF IN
Treasury the right to issue bOntS with
ont entertaining the purpose - use th'n
solely i'm the line Of the law
Nr VOORHEES,: Whenever the Senate
from Virginia nI is that the S'cr''Jry %
the Treasury is going 10 use TINS none
contrary 10 his view, there Will r1 tun
flr him 10 go 10 the courts ana RESTRAIN
him. | hold. with the Secretary, that h
can use this money In any way ina
ms 10 him proper ana conlh I'VE L
Nr. HaWlcy 0;.publicauD. Of connecticut
closed the DAYS discussion with an liu
rassl1nod arraigur MT of the prmoCrdu
rarty for the mischief wrought ~
/ proposed change of tariff laws 1T thi
1T the close Of ,ir Hawley's remark
tho bond res1lufi0n went over Nitnou
action till tomorrow. and after "A shof
executive session the Senate, ~ 0o
o'clock, adjourned until tomorrow.
House Of Representatives.
The last dag Of general debate on III
tarlH Tin opened With fair ttt.ullnc
! !n the galleries, and rather sim at
: tendance on the floor. Aitcr the comm [
tees had been called for reports, th
! House went into Committee OF the Nhol
/ To consider the tariff bill.
Mr. Tate, OF Georgia oierrd ihH III
I amendment To the Internal revenue iill
IL urOpOses 10 strike out the !Iat TIM
! sections OF tho bill. which includes tn
{ tax OF 81 a gallOm on distilled spirits. @u'
/ alsO the clauses referring 10 the bcniin'
of distilled spirits and their WithirdN1
from warehouses. This would ieuEe IN
/ existing law AS TO spirits In force.
/ Mr. Cultivate offered the following
amendment: THAT on and after N
passage OF this act there shall BE- leVit'
! ana collected a tax oh all distilled spirit
/ produced In the United states on Wh.cl
| the tax is not paid before that day pc
proof gallon cor wine gallon, when bt'OV
/ proof. ~ cents II paid within i've day
| after the date Of distiilation or Try int
| bOrd; 81 II paid after five days and withil
one year; I.l0 If paid after one yea
| and within two years; SID " udid alte
TWO years and within three years an
| 81 NJ If paid after four years
| Mr. OuthWaiic's amendment was de
| feated-ysas, g.: nays. 81.
Mr. Bland then offered a substitute 4
permit distillers at the expiration o
| the bonded period II pay into the Irt a
| slry the cost of the expectation ana I'm
| portatiOn OF liquor under the present regu
| l3tions. the product - rn1n IN TN
| country.
Mr. Cultivate said the loss Of revenu
under MIR Glands scheme would BE- iou
times the amount the Treasury would re
| ctiye under IL.
Mr.. Blands substitute was defeate'