The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-02-15

sumption of specie payments. The
reserve had not been threatened until the
panic of 1890, when in a single month
November S2l, 00O, 900 OF gold had been
withdrawn. In the course of the panic OF
1880, the S53, 600, 900 of bank trust funds
had been passed to the available assets OF
the Treasury. Since then bonds had been
sold three times to replenish the gold in
the Treasury, twice within six months
The previous operations of the Treasury
had resulted he said, in the Unitec
States exchanging its own bonds for 1t,
own gold, and now Secretary Carlisle had
done what Secretary sherman did time
and again when he was refunding the
public debt-he had purchased gold i'll
other markets than our own.
Mr. 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 being presented for redemption and
the reserve was only necessary for practl-
cal purposes to support the outstanding
silver amounting to but 5000, 900, 600. To-
day it supported the entire currency fab
rio, $500 900, 600 of outstanding legal ten
ders and treasury notes. $500, 600 900 OF
over valued silver and all the National
bank notes outstanding.
You admit interrupted Mr.. Dingley,
(Republican of Mane), 'such Sill, 200, 900
OF gold have been purchased to maintain
the gold reserve. How did the Treasury
obtain the money to meet the deficiency
in the revenues of $109, 600, 900 ?"
Mr.. Wilson replied that as he had stated
on former occasion, it was partly true,
by 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 trans
feTed to other purposes and had been
used to defray current expenses. Then
he called Mr.. Dingley's attention to the
fact that under the National act OF
1874 the bank notes being redeemable
by the treasury could be used by CONVEX
sion to drain the treasury of gold as well
as the legal tenders.
Mr.. Dingley, however, persisted upon
more specific answer to his original ques-
ton, and Mr.. Wilson finally admitted that
q large amount of the gold received from
the sale of bonds had been used to meet
the deficiency in the revenues. Then Mr..
Dingley returned to Mr.. wilson former
statement about the transfer of the bank
trust fund to the available assets of the
treasury, declared that not one dollar had
been used to defray current expenses.
The difference between your meth
DDS and ours, y replied Mr.. Wilson, amid
burst of Democratic applause, lis that
when we needed money we borrowed it,
When you needed it you borrowed it from
a trust fund. "
MT. DlngleY insisted that fund was not
used until 1893 whereupon Mr.. Wilson
cited him Secretary Window report,
stating on September 10, 1890, the oaly
available cash in the treasury was the
amount of the trust fund turned over to
that account in the preceding July.
This ended the fencing between the OPP
position leaders and Mr.. Wilson continued
his argument where it had been broken
off by Mr.. Dingley's interruption. Secre-
tary Carlisle in borrowing this gold had
only done what Mr.. Sherman had done.
lie had sold four per cent thirty year
bonds at the rate of 104 2, with the right
to substitute at par three per cent gold
bonds. III the Government continued to
maintain its traditional policy the per
cent bonds would be virtually payable in
gold because the Government was bound
to maintain all its currency on
parity. AS the bonds will be paid
in gold it was the sense of the Ways and
Means Committee that there ought not to
be any hesitation in making these bonds
payable in gold and saving to the Gov
eminent the interest charges amounting
to over SIG, 600, 900. The contract is already
made by which the gold is being put into
the Treasury and placed on vessels for
shipment to this country. 1t cannot be
set aside; it was made under ample pro-
vision of law. The question presented
here is, whether we will substitute for
per cent coin thirty-year bond q per
cent gold bond