The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-02-15
The Resolution Providing for the
Issuance of Bonds Defeated.
FAILED TO PASS A THIRD READ
ING IN THE HOUSE
Although the Attendance at the Open
ing of the Debate Was Small, There
Was Much observation-disclosures
ings in the Senate-Debate on the
Postofiice Appropriation Bill.
Special to the RECoRD-UNIoN.


WASHINGTON, Feb. 14.-Although it
was known that an attempt would be
made to-day to pass the resolution author
lzing the issue Of 3 per cent. gold bonds
In the House, the attendance was not
large when the Speaker called the House
so order at IL O'clock. This was probably
due to the fact that many members sup
posed the House would meet at noon, as
usual. Despite the small attendance,
however, there was much excitement on
the floor. Mr.. Catchlngs, from the Rules
Committee, reported the special order
under which the House was to operate.
1t was as follows:
"ReSoICed, That Immediately upon the
adoption OF this rule the House shall pro-
ceeu as in Committee of the Whole TO tho
consideration OF House Resolution \ o.
255 (the bond resOlutiOn), and at the heur
of ) O'Clock this day the previous ques-
tion shall be considered as ordered on
said resolution, and then without inter-
vening motion votes shall be taken
thereon until the same shall have been
fully disposed or"
Catchings promptly demanded the
previous question as soon as the resolu-
tion had been completed. On a rising
vote the previous question was ordered
90 TO IL.
Picl1Ier (Rep.) of South Dakota made
the point OF no quorum, but withdrew 1t,
aud before time for debate could be
rlaimed under the rule, the vote re-
purred on the adoption of the order. 1t
resulted 56 TO Il.
Simpson (POp.) of Kansas again made
the point OF no quorum.
Simpson and Catchlngs, as tellerS, took
their places, and for over halt an hour
they waited patiently for the belated ar
rivals TO make up the coveted quorum.
With the arrival Of the members came q
stream OF visitors in The galleries, and at
1l:5Z, when Catchings reported quorum,
the Hall of Representatives presented an
animated appearance. The vote had re-
suited l52 10 2S IN favor of the special
order
Simpson, who remarked sarcastically
soto v0ce that he was trying to protect
the President against the yindictiVe as
sault OF Republicans, recreant Democrats
and cuckOOs, made no attempt to get the
yeas and nays. and the special order was
declared adopted.
Before the debate began the Speaker
announced that he would recognize two
members of the Committee on Ways and
Means-Wils0u and Reed i'll the affirm
ative, and Hopkins (Rep.) of Illinois and
Bryan DEM OF Nebraska in the neg
ative-to control four hours Of the time
allotted for debate, the remaining hour 10
be given TO debate under the tiYe-minute
= ute.
Wilson, Chairman of the Ways and
Means, Committee, who opened the de-
bate, cautioned the House at the very
outset that unless the debate could be re-
stricJed to the resolution from the Ways
and Means Committee, 10 the exclusion
OF all partisanship, it would be impossi-
bic to vote intelHgently on the question
at its conclusion.
Wilson then proceeded to carefully
state the case, covering the ground ira
Versed by his report to the House yes
terday. He said there was no dearth Of
revenues in the treasury. To-day he
discovered that there was an available
cash balance IN the treasury OF Sl6J. 900, 600,
a larger balance than on June 80, 1892. by
$4,000, 600, when ii was STA, 900 900, in
Cluding the gold reserve. To-day the
gold reserve stood at f2,2i3, ,000. Wilson
reviewed the history OF the gold reserve,
established to insure the resumption OF
specie payments. The reserve mad not
been threatened until the panic of 1890.
when, in a single month (Novem berJ,
81, 4,0OO,O ,OOO OF gold had been Withdrawn.
In the course OF the panic of 1890 the
So, ,0Ou, 600 Of bank trust funds had been
PASSED TO the available assets of the treas
ury. Since then bonds mad been sold
three times to replenish the gold in the
treasury, twice within six months. The
previous operations of the treasury had
resulted, he salu, IN the United States
exchanging It's own bonds for it's own
gold, ana now Secretary Carlisle had
done what Secretary Sherman aid time
and time again when he was re;unding
the public deDt-he had purchased gold
i'm other markets than our own.
Wilson contrasted the situation of the
treasury in 1882 with its situation now in
regard to the burden To be borne by the
gold reserve. Then no greenbacks were
.HyN.A H..
reserve was only necessary for practical
purposes to support the outstanding sill
yer, amounting to but 500, ,0O0,UOJ. To-
day il supported the entire currency fab
ric, 500, 100000 Of outstanding legal and
treasury notes, $500, 900 OF overvalued
silver and all the national bank notes
outstanding.
"Iou admit" interrupted Dingley
(Rep.l of Maine, ''such Sill, 900, 600 Of gold
has been purchased TO maintain the gold
reserve. How did the treasury obtain
the money TO meet the deficiency in The
revenues of SlO9, ,000?"
Wilson replied that, as he had stated
on former occasion, it was partly
through the operations OF the endless
chain process by which gold was drained
from the treasury. Some of the money
obtained from the sale of bonds had been
transferred TO other accounts, and had
been used to detray current expenses.
-
4that under the National Act OF 1874 the
bank notes, being redeemable by the
treasury, could be used by conversion TO
drain the treasury of gold as well as the
legal tender.
Diugley, however, persisted upon a
more specific answer To his original
question, and Wilson finally admitted
that large amount of gold received from
the sale OF bonds had been used to meet
deficiency in the revenues. Then Ding
ley, recurring to Wilson'S former state
ment about the transfer of the bank trust
fund 10 the available assets of the treas
ury, declared that not one dollar of that
1und had been used to defray current ex-
penses.
1.-The difference between your methods
and others" replied Wilson. amid a burst
OF Democratic applause, lis that when
f we needed money we borrowed it. When
you needed it you borrowed 1t from a
trust fund.-.
Diugley insisted that that fund was not
used until 1898, whereupon Wilson cited
hun Secretary Windom's report stating
that on September l, 1880, the only avail
able cash in the treasury was the amount
OF the trust fund turned over TO that ac-
count in the preceding July.
This ended the fencing between the op-
position leaders, and Wilson continued
his argument where 1t had been broken
on by Nngley's interruption. Secretary
carlisle, in borrowing this gold, had not
only done what Sherman had doue, but
he had sold 4-per-cent. thirty-year bonds
at the rate OF l044, with The right to SUBJ
stitute at par 3-per-cent gold bonds. Ii
the Government continued TO maintain
its traditional policy, the 4-per-cent.