The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-28
TELLER AND HILL HAVE A TILT
THE NEW YORK SENATOR ALLUD-
ED TO AS A TIDE-WAITER.

Down by senator Hfll-Ihe Latter
Lets Him Down by Reference to
the WiIds of Colorado.
Washington, Dec. 27.-The financial
question came to the front in the SEN
ate to-day in the fern of a joint resolu-
ton introduced by Mr.. Hill, dem, of
New York, to the effect that all bonds to
be hereafter issued shall be made payable
in gold coin or in standard silver dol
lars. at the option of the holders; and
that-no bond containing such options shall
bear higher rate of interest than per
cent. He made long. carefully prepared
speech on the subject. winding up with
the declaration that his proposition was
measure simply for temporary relief,
but that as a measure for permanent re-
lief it was reasonably clear that all United
States notes and tureasury notes should be
redeemed and then cancelled.
Mr.. Teller was wrought up to a state of
indignation by Mr.. Hnls proposition and
! speech, and in his invective against the
President, the Secretary of the Treasury
and treasury subordinates, made con-
temptuous allusion to the "tide waiter
who now assumes to speak on the finan-
cial matter" Everybody understood
that it was the New York senator who
was thus ANONYMOUSLY referred to, but
when Mr.. Hill took up the offensive cpl
thet he was assured in the most positive
manner by Mr.. Teller that he had had no
reference whatever to the senator from
New York, but had only meant to apply
the epithet to such treasury subordinates
| as the director of the mint and the as
sistant treasurer at New York. Mr.. Hill
apparently accepted the disavowal, but
avenged himself in some degree, by the
intimation that the director of the mint
was as competent to speak on the fnan-
cial question as the gentleman who hailed
from the wilds of Colorado.
In explaining and advocating his joint
resolution Mr.. Hill said that under our
| existing financial systems, for which can
| dor compelled him to say both of the
| principal political parties were largely re-
| sponsible, there were outstanding to-day
| S346OO0,0O0 of legal tender United States
notes, which this government is consid-
cred obliged to redeem in gold whenever
presented for redemption; and when re-
! deemed those notes-which are demand
/ debts of the government-could not be re-
tired or cancelled, but must be reissued
/ and paid out. AS a redemption fund for
| this purpose the government was obliged
| to maintain a gold reserve" so-called, OF
/ 00,O00O00. That fund was to-day, Mr.. Hill
| declared only about S63,000,00O, and was
| disappearing, by reason of the large
amount Of greenbacks being daily pre-
| sented for redemption. In a few days
| this fund was likely to be less than $50,OO0,-
900. The honor and credit of the govern
/ ment required that the fund should be re-
stored to the full sum of $l00000,OOO.
"How is the government with reason
| able dispatch to procure the necessary
gold?' he asked EVERY avenue for Sc
curing it is blocked except the one meth
| cd of borrowing it. The revenues of the
government are not paid in gold. and
| while the government itself must pay in
! gold, it cannot compel, under existing
| laws, its revenues to be paid in that
| coin, and it has therefore but one practi-
| cal resource left-and that is to borrow
! the gold upon the best terms possible. 1t
| cannot refuse to redeem the greenbacks
| whenever presented. 1t cannot regulate
| their presentment. The law rquires II to
! pay, redeem and then to reissue them.
| Any other course is reputation; anything
| less is national dishonor.'
The question which now confronted the
| country-the practical question, the con-
ditiOn, not the theory-was, Mr.. Hill said,
| the maner in which the gold reserve fund
| should be restored. Its prompt restora-
| tion was the duty of the hour. 1T could
not safely be postponed. 1t was the duty
| of the coming week-not of two weeks
| hence. AS gold must be borrowed, and
| borrowed at once, it followed that the gov
| ernment should be permitted to make the
best terms. possible for the people. II
| it were unhampered and stricted-if
| it could negotiate and borrow the sum as
| an individual-the task would be mate
| rally lessened, but it was restricted by
laws passed years ago, which must be
observed and respected. The law which
| especially controlled and regulated the
method of borrowing gold to supply the
| gold reserve was the redemption act of
| 1875 That statute, taken in connection
| with the act of July IA, 1870, regulated and
prescribed what bonds may be issued for
II know" he said, that it has been
claimed that this statute furnishes no au-
| thority for present redemption; but that
| contention does not seem to be very Sc
riously insisted upon. The power is al
legged to exist and has been repeatedly ex-
| ercised. No court has decided against its
existence. nor is likely to. The Secretary
of the Treasury Will continue to exercise
| the power and may safely do so. 1t is
the. only feasible method left by which
to. protect the credit Of the treasury
s'There is no authority to issue gold
bonds, even though less rate of interest
might be secured thereby. The provisions
of the statute hamper, restrict and embar-
rass the government, so far as the secur-
| ing of favorable terms are concerned. Un-
less this statute should be modified, what
ever bonds are now to be issued must be
issued hereunder. There is no other al
statute is the sole reliance and protection
of the government at this time, my criti-
cism of it is that its provisions are not
eral enough to fully and ad-
equately meet the present emergency.
More discretion should be vested in the
Il
permitted to issue gold or silver bonds as
may be deemed most expedient; the rates
of interest should be reduced. The con-
dtions which existed in 1870 and 1875 do
not now exist and are inapplicable to
the present situation.
%Let us be practical Unless this old
statute shall be changed unquestionably
bonds must be issued Hereunder within
the next ten days. 1t matters not that
as a general principle we may be op-
posed to the further issuing of govern
ment bonds and to the further increase
Of the national debt, the power exists to
issue them-it is the only authority now
provided by which TO restore the nation
al credit--and they will unquestionably
be issued whether we approve or not
issued at a high and unnecessary rate OF
interest"
Mr.. I'M said II was business PROPOSE
tion which was presented to us. IL did
not involve. and neither did IL antagOnize
any question relating TO the free coinage
Of silver. That question was wholly for
eign 10 the proposition submitted. There
were S340. 900 go Of greenbaclSs ahOat which
were being constantly presented TO the
government for payment-f0r redemption;
and the gold must be forthcoming or else
repudltatlOn would ensue There was no
adequate time 10 retire the greenbacks,
because the question Of their redemption
was actually upon us. bonds must be- H.
fI fsfI 81.