Birmingham state herald., 1895-12-28

authority for practical redemption, put that contention does not seem to be very seriously insisted upon. The power is alleged to exist, and has been repeatedly exercised No court has decided against it's existence, nor Is likely to. The sec retary of the treasury will continue to exercise the power and may safeiy do se. It is the only feasible method left by which to protect the credit of the treas ury.
 'fThere is no authority to issue gold bonds even though a less rate of interest might be secured thereby. The proVis- ions of the statute hamper. restrict and embarrass the government so far as the securing of favorable terms is concerned: Unless this statute should be modified whatever bonds are now to be issued must be issued hereunder There is no other alternative. While the existence or this old statute is the sole reliance ana protection of the government at this time, my criticism of it is that it's provisions are not sufficiently elastic, not broad or liberal enough to fully and adequately meet the present emergency. More dls- cretion should be vested in the secretary of the treasury; he should be permitted to issue gold or silver bonds as may De deemed most expedient; the rates of in- terest should be reduced. The conditions which existed in 1870 and 1875 do not now exist and are inapplicable to the present situa ton.
 Let us be practical Unless this old statute shall be changed, unquestionabiy bonds must be issued hereunder within the next ten days It matters not that as a general principle we may be opposed to the further issuing of government bonds and to the further increase of the national debt. The power exists to issue them-it is the only authority now pro- vided by which to restore the national credit-and they will unquestionably De issued whether we approve or not-is- sued at high and unnecessary rate or internal revenue"
 MT. Hill said it was a business propo- sition which was presented to us. II did not involve and neither dld IL ahtae- onize any question relating to the free coinage of silver. That question was wholly foreign to the proposition sub mitted. There were $346. 900, 900 of green backs afioat which were. being constantly presented to the government for pay mention redemption, and the gold must be forthcoming or else reDudia tion would ensue There was no adequate time 10 retire the greenbacks, because the ques- tion of redemption was actually upon us ; bonds must be issued under the old stat ute and the only question involved In II, is whether by inaction (by an obstinate re- fusal he might say) to modify it's proVls- ions so as to permit greater discretion to be exercised and so as to permit the bonds to draw less rate of interest, we should compel the government to pay an enormous, unnecessary sum Of money lh interest.
 A lasting cure, however could only De effected by the retirement and cancella- ton of the entire greenback currency, thus relieving the government or the great burden of supplying paper credit currency always to be kept at a par with and to be rcdeema ble in gold.
 In conclusion he said:
 'sWhy is 1t not the part of prudence and wisdom to create bonded debt Tor the whole amount of these notes ana then cancel and extinguish them? Ihat sensible course would stop the creation of any further bonded indebtedness: Otherwise the process of borrowing ana bonding must continue, to what extent no one can foretell.'
 Mir. Teller said that he did not desire to enter into the discussion of the ques- ton now. But he wanted to enter ms protest against the repeated assertion made by the executive department and now in the senate that the government is bankrupt. He made that protest be- cause the securities of the United Stafes were .gilt-edged" securities in every market of the world, and never had been discredited by any banker or by anybody save the executive department under this administrati ton and by that member of it who now appeared as It's champion in the senate. MT. Teller spoke or the contract under which bonds were issued last year as "a lasting disgrace. due eith- CT to the dishonesty or imbecillty or the administration.
 we are told" he said, "by the public press that we are to have another bond issue and that 1t will not be as favorable this time as before, because the govern mcnt of the United States is in greater distress than year ago. Agaihst all that protest.
 .T do not intend" MT. Teller contin- ned. ito discuss the financial question now, but I do want to enter my protest against this degradation of our credit. There is not a financier in the country who will not tell you that we can place our bonds on the market at per cent and sell all that we want to. do nor say that it might not be well to amend existing laws, but do say that we are not required to amend existing laws De- cause of our ina ability to get money on our securities At the proper time l will ex- nress my views upon the department from the president down to the tide wait CT who now assumes to speak on the financial question" (The bitter ana pointed manner in which this last sen tence was uttered created a slight sensa- tion and some qulet laughter III lhe seh- ate chamber)
 MT. Teller went on to speak of the re- marks attributed to officers Of the treas ury, and particularly what the assist, ant treasurer at New Iork IS supposeu to have said about $100,000,000 of Amer ican securities being likely to be thrown upon the market That was well cal culated," MT. Teller exclaimed in tone of sarcasm, "to quiet and maintain the market, was it not? MT. President, ev- cry man connected with this administra- tiop fwhether the secretary of the treas ury or the director of the mint or the assistant treasurer at New York, or subordinate in the collectors office) has been talking for the last month or two in the papers about the lack of Ameri- can credit It is right that the American people should resent these repeated at jacks upon the national credit by men whom they have entrusted with power and offices. If the credit of the govern ment Is in danger 1t Is because of the incorporate, uncalled-for utterances of the executive department. propose to take up the question when the time comes and show that there is not the slightest reason why any man should be afraid of American credit. want to show that in this country, no matter what a man has believed in financial matters, no man, outside of the executive department, has suggested that ourcred- it would not be maintained to the high est possible degree, and, therefore. there l. fo1l ,f nrrr n