New-York tribune., 1895-12-28
act of July H. 1870 regulated and prescrioea Shst
bonds may be issued for such purpose
APP ASsED


THE GOVERNMENT EMBARRASSED
II Know" he said. 'that 1t has been CANNED
that this statute furnishes authority FOR prssen,
redcnDtton: but that contentlOn does noi seem 10
be very seriously insisted upon. The power Is a.
legged to exist. and has been repeatedly exercised
No court has decided against It's existence hos
likely to. The secretary Of the Treasury VIII con-
time to exercise the power, and may s'iey 20 90
II Is the only feasible method Jeff by wAich 10
protect the credit Of the Treasury. That statute
taken In connection with the law oi 1870. au-
.horizes the issue Of coin bonds "a follows; Ten
year bonds. interest payable se'ni-anrually, al
per cent; hf;ecn-year bonds at .@er cent, iHi!;y
year bonds. at per cent There Is ID authority
to issue any other kind or form OF bonds for re-
Gemptlon purposes. No less rate Of interest can
b. secured upon the face OF the bonds. less
rate must be secured by means OF premium or not
AZ all There is no authority 10 Issue sl.I bonds
evoa though less rate OF interest mish' DE Sc
cured thereby The provisions OF THIS statute
hamper restrict ana embarrass the Government, 80
far as the securing Of favorable terms is cor.
ceraod. Unless tnis statute Should bH m-nhea
%aateyer Ion e are n9w 10 m 10 Ge l.saIi s
the st, nee Of this Oh statute - Nt' fye
4nee e y i9a crcs Of !; * IS hai its pr5vsoas a..
not sufficiently elastic-not broad or loerai .nouN
fully and aiequa tey meet the present emergency
More discretion should be vested n the secretary
OF the Treasury; be should be- permlu5i 10 i's.i
gold silver bonds as may be- deemed mos I eA-
Xllch existed
now exist and are inappieab.e % 'he present s'ui'
ton" ~ ,,.. ,.,.,. .-,,.,.,,, .,r,.,
enlarged the discretion vested in the secretary of
the Treasury. enabling nm 10 issue D2nls. pa
Sbe either her IN g or f fvf rate at Of W n 81 10 be
exactei on any bonds which might be issued con-
hns ths msoica;i6n. ie di not know whether no
this change would be acceptable TO The secretary OF
him. for he did no; see how the Secretary could
we'll oppose 1t. That official might desire other
r.irg md ralfp fp1l
dOubtedly desired legislation in accordance win me
full recommendaton5 Of his annual rePor,, corc,, IN
and with others Of which he did noi entirely agree
Bat be that as it may; Mr Hill continued: sue, SUI,
the crisis which now especially contronts us, ahi
which must be speedily met Let ns be prac,ea
tonaby bonds must be Issued thereunder WITHIN
the next ten days 1t matters not that as ger.,a. ,
principle We may be opposed TO the further issuine
OF Government bonds ana to the further increase
OF the National debt The power exists - ,ssus
them-it is the only authority now provided by
which to restore the National credit-and they Will
unquestiona5.y be issued. whether We approve OF
not--ssued at high and unnecessary rate o; inter.
re Of Interest and 70 enlarge the discretion Of tho
s!be bargain for the Government? VII. We reiuss
To ameni a statute 80 as TO render ii more accepsl-
he and los bnrdanso2le simply because We may
nTovisions ~ .Te statute "a amended? An oppor,u-
nitv Is here presented to us to save the people mill.
should we not avail ourselves Of it? II those who
have money to loan willing 10 charge u .ess,r
rate of int crest II the bonds be issued made
obiaction can be urged t1 making them payable a.
the option OF the holder. Everybody believes thst
we should always pay our bonds in the best money
In use-always pay them In gold II any difference
exists In the real state of gold and svsrand II that
be the case why not declare our purpose on tne
face OF bonds-our purpose to permit the hoders
to nave either currency they desire? II that option
shall enable to negotiate our bonds less rate
OF interest. why not avail Ourselves of it?'
FREE COINAGE NOT INVOLVED.
,lr. Hil said Il a business proposition which
presented. II did not involve and neither 90
It antagon.ze any question relating to the free coin
age Of silver That question was wholly foreign 20
the proposition submitted There were 2;6 oNO0 OF
greenb,cks ahoat which being constantly pre-
sented to the Government for paym-nt-for redemp
ton; and the god must De forthcomne, or e.se re-
pudaton would ensue. There WAS no adequate uns
10 retire the grenbacks because ihe question o. IE ~
demption was actually upon US. bonds mJsl "
issued under the od statute, and tn ony qlss,a,s
involved now, whether 10y inacton ,by an oosuhA.ss
refusal he misht say) 10 modify its provisions - 81
10 permit greater discretion - be exercised any ~
tcrestIwe should compel the Governncn, q pay an
enormous unnecessary sum OF money IN mtsr''s;
S peope ss'T money Sney4S ad snsors h. ass
hected upon the amount of money which they hs hai
was often asked why ala not The G3yernmeu, !ssis !s
"A popular loan to rep!onisa the gold rs' s'- E EIns
cr.ticising made such a loan very d!icu.t premiums
were ab.e to hrctua,e In the market. AMI the AVER
chasing ana what he was likely receive when D,
So!d. w ny, he asked. should any prejudice agansss
gold be permtted 10 interfere In such transacl0h.
Why should any general theory ab5u, money ..
about independent or international free coinage Ve
allowed 10 prevent the contamination of a iayoTaos
bargain for the Government and the pc1p.e? way
stand cOntending about conflicting the }res whsh
borrowers ana lenders a.. meant the SANE ihns us,
sred the same result But az the G)t.rn,m'sen... men.
must have gold. and as IL preferable tor d'vrts
roasons) to draw II from Other countries II possible
foreigners could rot 3e expected TO shore the cor,
ndenee when the American peCnle had. and s,nte
these foreigners desired an eXplr't understanding
that the bonds should be Dald in gold he could Sc
no insuperabe objection 10 gratifying them - lons
jeoperdia0l
lasting cure however. could Only be cneetsa
by the retirement and cancellation of the enus,
greenback currency, thus relieving the G)vernmss'
OF the great burden Of supplying a paper-cretN cI
rency always 10 be Kept at n par with and 10 "a "a
rsdeemable In gold In closing he said "WM
II not the par, Of prudence and wisdom 70 create
bonded debt for the whole amount of these no n,n
ard then cancel and eXtiAguish them? Th,l So.
sbe course would stop IN, creation Of any fsr'h,,
bonded indebtedness. Otherwise the process q.
borrowing ard bonding must continue. to wnas ~
tent no one can foretell" IA,
Mr illi at The close Of hs speech moved 10 fst fsat
the oint resolution To the Flaance Committee o."
at the request OF Mr. Allen Pop.. Neb). he VIE