The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-14
THE GOLD BOND BILL



the maintenance of the parity OF its coin
circulation and the reasons which compel at
penish and maintain that reserve: also the
authority Of Section goo Of the Revised
the treasury OF sum slightly in excess or
So, Ooo, o0o OF gold coin. to be. added to the
only s42.2l7osi, at the present time. The
committee has had the benefit of a confer
enee Win the Secretary OF the Treasury;
contract entered into by himself on the Sth
day of February. and explained its details
TO them A full and complete copy OF said
contract is hereto added. From a reading
Of this paper 1t will be seen that the ar
to the contract effects the purchase of g.
100000 ounces of standard gold coin of the
nnted states amoqnting , 60 $50 Held at
and shipped from Europe. For this gold
coin he has contracted to issue to the par
ties furnishing it, under authority OF the
act for the resumption of specie payments,
approved JAM Ia, 1916, four-per-cent. thirty
rate of 3A per cent. But the Secretary OF
the Treasury has reserved the right. if au-
stitute at par any bonds of the United
States bearing per cent. interest, of which
the principal and interest shah be specifical-
ly payable in United States gold coin of the
present weight and fineness, said substitu-
ton to be made within ten Gays from the
date of the contract. It is the object of the
joint resolution herewith submitted to give
to the Secretary Of the Treasury authority
to substitute such bonds to the amount of
the contract.
THE saving to be effected to the govern
nage w be n ts for
the three,per-cent. bonds run, and OF the
amount of SIG, 17o.To should they run thirty
mittee that the issue of bonds specifically
payable in gold will impose any additional
# they are made payable og h coin Under It's
pledge and policy to preserve the parity Of
the coins in the two metals, the saving OF
this large amount becomes a matter of sub
stantial moment and advantage to the gov
eminent, and as the parties to take the
bonds are under contract to furnish gold
coin for them, it seems no hardship on the
government to contract TO pay them back
in the same coin that they furnished to it,.
The contract was made part Oh the re-
port.
MINORITY REPORT.
The following report was submitted:
Owing to the limited time allowed for
preparing a report the undersigned dis
senting members of the committee are pre-
fluded from th tneir w5 o
the subject would otherwise JUSTIFY, but
they beg to state briefly the most import
ant reason which led them to diSapprOve
of the measure recommended by the major
ity of the committee.
''First-The issue of bonds of any kind is
only needed to replenish the gold reserve;
and the gold reserve only needs replenish-
ing because the Secretary of the Treasury
redeems United States and treasury notes
in the kind of coin selected by the note
holder. The noteholder has No legal right
to choose the coin in which the obligation
shall be redeemed, but has been permitted
to exercise that right by policy inau-
gurated by the Treasury Department. at or
soon after the date of the redemption OF
specie payment. The opinion of the Score
tary of the Treasury. Mr.. Carlisle, recently
given is clear upon this point No one
contends that the executive department of
the government can bind the government
or pledge its faith and credit by. the adop-
ton of such policy. To SO hold would be
to assert that the executive can make and
repeal laws without the concurrence of the
Senate and House of Representatives. Be-
lieying that the Secretary of the Treasury
has now by law the right to redeem legal
tender notes by the payment of either gold
venient for the government, and believing
that the exercise of this discretion by the
Secretary Of the Treasury is absolutely
necessary to protect the government from
organized and unorganized raids on the coin
reserve, we are not willing to indorse. d-
rectly or by implication, the administrative
policy which has precipitated the present
financial conditions. Neither are we willing,
by authorizing bonds for the purchase of
gold, to pledge the government to policy
which discriminates against silver as a
standard money and recognizes gold as the
only money of ultimate redemption. So
long as the notehoIcer is allowed to choose
the coin in which he is to be paid so long
will 1T be futile to attempt to maintain
1--WE have no hesitation in declaring it as
our conviction that there is no remedy, per-
manent in character promising in results,
except an immediate exercise by the Score
tary of the Treasury of the right to redeem
United States notes and treasury notes in
standard silver coin whenever 1t is more con-
venient for the government to do So and we
further believe that the greatest danger
which can possibly attend such course is
infinitely less than the evils which are GER
tain to follow an adherence to the present
policy.
''Sacond-If we were willing to authorize
the issue of bonds at this time to purchase
gold we would still be opposed to bonds pay
able specifically in gold. because issue of
such bonds would either pledge the govern
ment to the redemption of all obligations in
gold or make discrimination against coin
obligations now outstanding. There is no
question that the issus of gold bonds now
would at once be followed by a demand for
an act making existing bonds payable in
| gold, and 1T would be urged that it would
be disastrous to depart from the policy of
gold bonds when once inaugurated. Just as
| it is now urged that it will be disas ,rous for
| the government to resume a discretion which
| has been temporarily SURRENDERED to the
| noteholder. 1t is impossible to overestin1ate
| the evil influence which would be exerted by
| the issue of gold bonds by the government
because such action would naturally and
necessarily encourage. # not actuallv co--,-
| rel the issue of gold bonds by all public
| and private corporatios's and the walSir~ o.
| gold contracts by individuals generally. Such
! an increased strain upon gold would mani
| fest itself in further rise in the purchas,
| distressing addition to the load of debt now
| borne bv the people.
| '.Third-The minority is opposed to the
| Issue OF bonds running for thirty years.
| "Fourth-1f we were willing to authorize
| the issue of thirty-year gold bonds we
| would still be opposed to recognizing or
| ratifying a contract as harsh in its terms
| and as imperious in It's demands as the
| contract insisted upon by the bond pur-
| chasers.
"Fifth--If we were willing to approve of
| such a contract under ordinary circum-
| stances we would still be opposed to APP
! proving it when made by a sovereign gov
\ eminent with foreign financers, under CIR
| cumstances which suggest a desire upon the
| part of the subjects of another country to
| purchase change in the financial policy
of this Nation for a sum stated.
| "Sixth-If further reasons were necessary
| they might be found in the fact that the
contract provided for the sale of coin bonds
! at about 104la which won sell in the mar
1 ket at about 119, in the fact that the con-
| tract agrees to sell thrtyyear gold bonds
| drawing per cent. interest for less than
| the government three months ago sold
| twe've-year coin bonds, and in the additional
| fact that foreign investors are by the con-
| tract given the preference over American
investors in the purchase Of any bonds
| which may be issued before next October
and are also given a preference now over
| the American investors. who but short
| time ago stood ready to purchase more
| bonds than We're then offered
| The report is signed by William J. Bryan
and Justin r. Whiting. Mr.. McMllin and
Mr.. Wheeler. while dissenting from the