Evening journal., 1895-01-29
mr.. SpRINGER'S BILL.
Win Congress Carry Out the
Presidents Suggestions?
HOUSE DEMOCRATS ARE DIVIDED

the Balance of Power.
WASHINGTON, Jan. s9.-The financial
question and the Presidents special mes.
sage on that subject monopoli2es discus
sion. public and private, today
There Is some doubt whether the house
committee on banking and currency Will
agree to report Co the house today the bond
bill which was introduced by Chairman
Springer to carry into effect the recon-
inendationa of the presidents message
The Democrats Of the committee are di-
yided in thoir views on all financial legis-
lation, and some Of them are irreYocably
opposed to bond issues.
One member who favors tho presidents 3
plan says that he does not believe more
than four or five Democrats on the COM
mittee will vote for it, The balance Of
power accordingly rests with the Repub-
licans in the committee, as it does in the
house
Chairman Springer believes that the Re
publioans will vote to report the bill and
will aid the Democrats IN the house to
pass it. Representative Hit, one OF the
Republican leaders, says that his party is
for the bill by a majority Of 10 to /.
The presidents message was as follows
AIt AHtniutnts mtsAaEes
ITO the Senate and House Of Representa-
tivos.
" In my last animal message com.
mended to the serious consideration of the
congress the condition of our national
finances, and in connection with the sub
ject indorsed the plan Of currency legisla-
tion which at that time seemed to furnish
protection against impending danger.
This plan has not been approved by the
congress. In the meantime the situation
has so changed and the emergency now
appears so threatening that l deem it my
duty to ask at the hands of the legislative
branch Of the government such prompt
and effective action as will restore conf
dence in our financial soundness and avert
business disaster and universal distress
among our people.
Whatever may be the merits OF the
plan outlined in my annual message as a
remedy for ills then existing and as a
safeguard against the depletion of the gold
reserve then in the treasury, / am now
convinced that its reception by the con-
gress and our present advanced stage Of
financial perplexity necessitates additional
or different legislation.
The real trouble which confronts us
consists in a lack Of confidence widespread
and constantly increasing in the continu-
ing ability or disposition of the govern
ment to pay its obligations in gold. This
lack of confidence grows to some extent
out Of the palpable and apparent embar-
rassment attending the efforts of the gov
ernment under existing laws to procure
gold and to "a great extent ont of the im-
possibility of either keeping 1t in the treas
ury or canceling obligations by its ex-
penditure after it is obtained
The Present Drawback.
THE only way left open to the govern
ment for procuring gold IS by tho issue
and sale Of its bonds. The only bonds that
can be so issued were authorized nearly g5
years ago and are not well calculated to
meet our present needs. Among other dis
advantages they are made payable in coin
instead Of specifically in gold which in ex-
isting conditions detracts largely and in
an increasing ratio from their desirability
as investments. 1t is by no means certain
that bonds Of this description can much
longer be disposed of at a price creditable
TO the financial character of our govern
ment. The most dangerous and irritating
feature OF the situation, however, remains
to be mentioned It is found in the means
by which the treasury is despoiled of the
gold thus obtained without canceling a
single government obligation and solely
for the benefit OF those who find profa in
shipping it abroad or whose fears ind 'oe
them to hoard it at home. We have o. 5
standing about $500, 600, 600 of currency
notes Of the government for which gold
may be demanded. and curiously enough
the law requires that when presented, and,
in fact, redeemed and paid in gold, they
shall be reissued Thus the same notes
may do duty many times in drawing gold
from the treasury, nor can the process be
arrested AS long as private parties for profit
or otherwise see an advantage in repeating
the operation. More than $500, 600, 600 in
these notes have already been redeemed in
gold, and Notwithstanding such redemp-
tion they are all still outstanding Since
the 18th day Of January, 1894, our bonded
interest bearing debt has been increased
500, 000 600. for the purpose of obtaining
gold to replenish our coin reserve. Two is
sues were made, amounting to $50. 900, 600
eaoh-one in January and the other in No
vember As a result of the first issue there
was realized something more than $50,
600, 600 in gold.
The Second Bond Issue.
Between that issue and the succeeding
one in November comprising period of
about ten months, nearly Sl03, 00O 600 in
gold were drawn from the treasury. This
made the second issue necessary, and upon
that more than SOS, 900, 600 in gold was
again realized. Between the date Of this
second issue and the present time, covering
a period of only about two months, more
than 500, 000 900 in gold have been drawn
from the treasury. These large sums OF
gold were expended without any canoella-
tion Of government obligations or in any
permanent way beneiiting our people or
improving our pecuniary situation.
The financial events Of the past year
suggest facts and conditions which should
certainly arrest attention.
More than SlT2, 600, 600 in gold have
been drawn out Of the treasury during the
year for the purpose OF shipment abroad or
boarding at home.
While nearly S103. 600, 600 Of this
amount were drawn out during the first
ten months Of the year, a sum aggregating
more than two-thirds of that amount, be-
ing about $50, 600 600, was drawn out
during the following two months, thus
indicating a marked acceleration Of the
depicting process with the lapse Of time
The obligations upon which this gold
has been drawn from the treasury are still