Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-02-13
THE BOND. CON TRACT
Resolution introduced Calling for a
Copy Of It.
Mr.. SHERMAN'S SECONDFlNANCIAL BILL
Mr.. Chambers Criticism on a Post
Office Appropriation Item.
M ATTERS IN THE HOUS q

A financial bill on the lines of the Pres
ident's last message to Congress was pre-
scented to the Senate today by Mr. Was
(Wis.). Its reading was followed with much
interest, and 1t brought out brief but
spirited debate
The measure is entitled IA bill TO save
the American people $1G174,IIO." 1t re-
cites the Presidents statement that he
had agreed to issue S82, 100000 of bonds,
payable in "coin" at an interest equiva-
lent TO 3 3-4 per cent, but had retained the
right to issue bonds payable In gold at
3 per cent If Congress granted the au-
thority The bill states that this difference
in interest amounts to $685. 153 per year, or
sl6,174,77O in the thirty years during which
the bonds will run. 1t is provided that the
Secretary Of the Treasury shall be author
lied to issue $65.OOOOO0 Of bonds at 3 per
cent interest, payable in gold in thirty
years The bonds are to be used in re-
deeming legal tenders and are TO De ex-
empt from taxation.
MIR. HOar's Inquiry.
Mr.. Hoar Mass.) rose as the reading OF
the bill closed. and. addressing himself to
Mr.. Villas. said: viii the Senator tell US
as to the authority for the great savings
he sets forth? Who are the persons with
whom this arrangement for buying bonds
have been made. Where is the contract:
We ought to have full information
Il am not the keeper Of executive docu-
ments," responded Mr.. Villas 1.-The Presi-
dent has given us his views in his mes
sage"
have details. We have only a statement
of certain facts and conclusions by the
President but there is an entire absence
of details"
II have no more details than any other
Senator" said Mr. Villas.
Mr.. Wolcott CCol) gave new turn to
the discussion. THE morning reports tell
u.s." said he, that these bonds are being
means the syndicate of Jewish bankers
who have taken the bonds are netting
profit of per cent"
Mr.. Villas said this was an additional rea-
son why a new form of bonds should be
authorized.
MIR. Teller's Criticisms.
Mr.. Teller spoke of the enormous profit
of per cent already being realized in
London on American, bonds. He said the
President had given no details as to the
CT ntract with bankers. The ways and
means committee 1of, the House had been
trying to get at the facts. but had not yet
found out the names of all the parties
interested in the bond contract At first
we were told these bonds would have to
basis, and now they were selling in London
on a gold basis. "A few months ago our
be nds sold easily at less than 5 per cent
interest. 1t could not be possible, said Mr..
Teller that the utter lack of tact shown in
the Treasury Department had forced up
the rate of interest from less than TO
34 per cent. when the last bonds are
much superior to the former cnes. The
Senator also pointed out that the President
had gone abroad for, purchasers of bonds
and had not given our own people an OPP
portunity to buy them. If these bonds
were selling at such a handsome profit in
London. it showed the credit of the United
States had not been, so disastroLsly i'm
paired as the President sought to make the
country believe.
MIR. Sherman Offers Another Bill.
At this point MI. Sherman Ohio came
forward with another financial measure.
He offered it as a substitute to the bill for
unlimited silver coinage, reported from the
finance committee yesterday. Mr. Sher-
mans bill is similar to the one introduced
some time ago, although he now gets it
directly before the Senate. 1t provides for
bonds at per cent, payable in gold coin,
and for the issue Of gold certificates.
Both the bills of Mr.. Villas and Mr.. Sher-
man went to the table. Thereupon Mr.. Hill
N.Y) raised the point that they ought to
go on the calendar, where they could be
got at. and would have the same advant-
ages as the silver bill reported yesterday.
were left on the table,
Call for the Contracts.
Mr. Aldrich had suggested during the de-
bate that If the Senate wanted more de-
tails as to the bond contracts between the
treasury and the bankers the best thing to
do was to call for the contracts. He now
introduced a resolution to this effect. 1t
calls on the President to send to the Sen
he
interest, a copy of the contract between
the treasury and certain bankers for the
purchase of bonds. Mr.. Aldrich sought to
have the resolution Immediately considered,
but Mr.. Vest objected and 1t went over.
With this financial prelude ended the Sem
ate turned to general business. Mr.. Nor
gan (Ala.) secured the passage of joint
resolution in accordance with the Presi-
dents annual message, concerning the Ven
ezuela- British Guiana boundary Mr. Villas
gave notice of eulogfes on February 10 to
the memory of the late Representative
Shaw of Wisconsin.
Earlier Senate Sessions.
Mr.. German offered a resolution, which
went over. that the Senate sessions begin
at II am on and after next Friday.
The House resolution was passed extend
irg the time for making returns on the
income tax from the first Monday in March
to April Is 1t adds several Senate amend
nents to the income law to fire fnsur-
ance premiums and corporation stocks.
The Post Office Appropriation Bill.
The Senate then resumed consideration
of the post office appropriation bill, and
Mr.. Chandler On. H) made a sharp ar
1aignment of the provision giving the Post
master General discretion over expending
the 1920 600 for railroad postal rates.
Mr.. Chandler pointed out the dangers Of
the change and characterized the amend
a SUueeZer.'
designing men an opportunity to squeeze"
railroads by threatening to put them on
the rack If they wished to have their COM
pensation increased for postal car service.
"And the great political committees also
seek various means Of Of, raising money"
said Mr. Chandler. They seek money
from all available sources. They like it in
a1ge sums and they prefer it from large
corporations rather than in small subscrip
lions from individuals.
Mr.. Chandler said that If this amend
ment was made It wdald make it possible
for the great political committees to APP
~ Ho n