The Providence news. (Providence [R.I.]) 1891-1906, 1895-02-06
OPPOSITION.
Springer Bill Runs Against
Snags in the House.
London Gold for a Bond Issue Pur.
pose Of the Administration.

WASHINGTON, Feb. b.-The deodte on
the administration bill to authorize the
issue OF s500. 100000 gold bonds for the
purpose OF retiring the legal tenders and
the treasury notes began In tho house
yesterday and continued for six hours
1t developed widely divergent views at
the ontset. The silver Democrats and
Populsts opposed it outright. Some OF
the administration Democrats favored
substitute on the lines OF the Carl 10 bill,
while Mr.. Reed, tho leader OF the Repub-
lican minority, made speech charging
the present trouble TO the deficiency In the
revenue Mr.. Reed snid that ito raise rev.
enues would be confession. and confession
might moan suicidcD
he sald that those In control Of public
affairs would have command OF the rev.
enue question for tho next two years. The
secretary Of the treasury had just reported
TO the senate that he would have sur
plus Of ss2. o0o, 00o The secretary had given
the last dollar Of this surplus. Now, IL
the secretary had the surplus, the thing to
do was TO use IL, and, instead Of long
time gold bonds, issue certificates to be re-
deemable at any time.
Mr.. Reed said he would send to the desk
the plan he had formulated 1t might be
changed or modified. He was not insist
ent on having 10 considered as n substi-
.tute or in any other particular relative 70
the pending bill. But it avoided the ques-
tiGn OF putting gold bond against the
coin bond Of the past; IL avoided other
complications promised by the original
measure.
Points OF Reeds Measure.
Section OF Mr.. Reeds bill authorizes
the secretary of the treasury to issue per
cent bonds, payable after five years, SINH
lar to the bonds issued under the resuinp-
tlon net. IL is substantially similar to
Mr.. Shernan's bill introduced In the sem
cite.
section embodcs the new phase intro
duced by Mr.. Reed, and is as follows:
That 10 enable the secretary OF the treasury
70 pay the current expenses of the govern
ment, 30 long ne the current revenues shall be
deficient, he is authorized and required from
time TO time, in his discretion, 70 ISSUE sell
and dispose of at not less than par, such an
amount of certificates OF indebtedness
of The denominations Of SIS, $50 and 500,
or any multiple thereof, may bc
needed for that purpose, bearing not TO ex-
ceed per cent interest per annum payable
semi-annually and redeemable at the pleasure
OF the government in coin after two yeers
from their date, with like qualities, privileges
and exemptions provided in the act approved
Jan. IL, 1915.
The secretary may at his discretion sell and.
dispose of the same for not less than an equal
amount of lawful money OF the United states
at dergnated depositories OF the United
States, and at such postofhces as he may select
and tho secretary may use the proceeds thereof
and for none other.
Mr. Walker (Rcp., Mass) said Mr.. Car
Isle was a good man, but no flnancier,
and that II John Sherman WIS at the helm
of the treasury the present trouble would
be ended shortly. The government had
already been forced TO issue 500, ,0o0, 900 OF
bonds, which were denominated 'Grov-
ers." Shortly 800, 0Oo. 900 moro Growers"
would be foated, and the next step would
be the issue OF $500, 900, 900 "Grovers''
Mr.. Simpson Pop, Kan.) regretted that
he could add no hilarity TO ''ths funoroa.
OCCASION" Ho inquired what were the
moral obligations" to which Mr..
Springer had referred as binding the sec
retary TO redeem obligations in gold, and
declared that 1t was an evil inheritance
from Republican rule He characterized
the new bill ns a complete surrender of the
Democratic party to the banking interest.
Mr. Pence (Pop., Colo) marveled that
such measure as the pending bill should
emanate from Democratic committee at
the dictation OF Democratic president.
and he expressed for himself and his party
willingness to cooperate for the passage
of some relief measure along the right
lines.
The debate under the n e-minute rule.
when the bill will be open for amendment,
begins today.
London Bankers May Take Bonds.
Tho cabinet was in session yesterday
from before 10 o'clock until after s:45
1t is understood that almost the only
subject of discussion was tho pending
bond issue Several prominent New York
bankers arc here, and while they have not
seen either the president or Mr.. Carlisle,
81 is understood that their views on the
situation were conveyed to the president.
No authoritative statement of tho char
actcr of tho cabine5 discussion can bc
made but it is believed that no final
action has been determined upon. 1t
Is understood that negotiations with
representatives OF London bankers arc
how in progress, with indications of
Nh early consummatlon. There is no
longer any expectation of popular
loan to be placed In this country. Us in
that event the experiences of the last few
months would he repeated and the gold
reserve again depleted
The purpose OF tho administration is, 1t
IL understood, to place the entire issue OF
bonds with London bankers who would
pay for them in gold, and thus avoiding,
Tor tho present at least, tho necessity for
paying out gold ii exchange for legal
tenders. While no deflnite conclusion has
been reached, it is believed that the an
nouncement OF the sale OF the bonds will
be made at an early day.