Daily Kennebec journal., 1895-02-15
NlLED--121 to 1865.
Another Blow to Administra-
tration's Financial Policy.
House Refuses to Pass Wilson's $685.
100000 Gold Bond Issue
To Third Reading-President Scored for His
Recent Bond Contract.

|
House. He was interrupted by Dingley
(Rep of Maine, who said: "It the secre.
tary of the treasury borrowed S117 900, OOC
in gold, as l understand the gentleman
to say, tor the maintenance of the gold
reserve, will he explain how the govern.
ment provided revenue for the s1O9 600,
600 deficiency within the past two years.
Wilson, explained that in my speech
on the bill repeating the differential sugar
duty.
Dingley-No, but this is an important
matter and think ought to be properly
and clearly set before the House Has
not the money obtained by the sale OF
these bonds been used to meet the defici-
ency in revenues
Wilson--Of course the gentleman is
partly correct. ! showed some days ago
how, under the operations of an endless
chain" the money thus obtained into the
available cash of the treasury and was used
to pay current Indebtedness.
Dingley-How could that "endless
chain work of the grecnbacks redeemed
| were held in the treasury and not paid out
again?
Wilson-But doesn't the gentleman
know that under the law of 1874 the
national bank notes can be used c.fec-
| lively as treasury notes or greenbacks:
| That the government has been redeeming
| national bank notes and banks are not re-
quircd to do it?
| Dingley-.The gentleman has not
answered the practical question l put to
him. Was not the sale Of bonds made to
meet the deficiencies in the revenue and
not to maintain the gold reserve? That
| the surplus Of sos, 900. 900 now in the treas
ury was put there by the sale of bonds and
from no other source?
| Wilson-Ob, well, if the gentleman
wants to give the matter n political turn
and compare the matter of the manage
ment of the treasury department, l will
say that when we needed money we Dor
rowed it, but when you needed it you ap-
propriated trust funds in the treasury.
| (Applausc.)
| Dingley-Not dollar of the bank re-
demption fund was ever used by Re
publican administration to pay the ex-
penses cf the government.
Wilson-If the gentleman had read the
speech of Secretary Window to which
/ referred, he would have seen that accord
| ing to that officials own statements as
far back as Sept TO- 1890, practically the
only avilable cash in the treasury was
$54, 600. 600 of the bank redemption fund.
Dinglcy-And OF the surplus of which
you speak, today, all but S11, coo, 900 be
longs to that fund
| Wilson said that if the government
fulfilled its pledges, all the outstanding
bonds payable in "coin' We're virtually
payable in gold, for all our coin is pledged
to be kept on parity with gold There
ought not to be he thought, any hesitancy
In accepting the alternative proposition
of the syndicate, and thus save to the
government in interest more than $500,
900 n year.
| Gold was the legal standard in this
country on which all dollars are made
All contracts, not specifically to the con-
trary, are payable in gold. He argued
that the bonds were scld in this country
it would give no permanent relief to the
treasury and they therefore sold at the
market rate in those countries from which
the government would receive money.
Hopkins (Rep) of Illinois, said the
| question was whether Congress would au
thorizc the President to change the policy
of the government and issue gold bonds
| He deprecated such change. Referring
|
bonds are presumably payable in gold, he
inquired why this fact was not impressed
upon the mind of the syndicate without
an attempt being made to impress 1t upon
| Congress. -
Arid applause he asserted that when
See Folger desired to fund the $500, 600,
| 600 of per cent. bonds into 3 per Genus
| the nc egotiations were conducted, not with
,AN %
contract with law partner of the Presi
dent as a party to it, but in the open sun
light and with the American people as ITS
witnesses
In his Judgment the payment of these
in gold. instead of saving the United
| States $40, 600, 900 in interest, at the END
of 80 years. would cost the people Sloo'-
600, 600, as result of changing the charac-
ter of our obligations. Such transac-
tiop, he asserted, would make every bond
holder "bear'' in the market and in
terested in sending the country to silver
basis 1t would be the bondholders pur-
nose to drive gold to a premium; 1t would
encbance the value of their bonds and the
syndicate would double the value OF its
holdings
HOPKINS said that on the day this con-
tract was signed, per cent bonds, with
only 12 years to run, were selling In the
omen market for 1l0%. The new issue
was sold to the syndicate for lo41a. They
were sold to the syndicate for $500, 600
loss than they would have brought in the
omen market, and this gave them rate
| of interest that no civilized country Is
paying, today.
THE President S message sent in here
wns not inspired by patriotism but was
an effort to throw upon Congress the re-
sponsbility for giving profit OF ss5, ooo'
600 to a foreign syndicate represented by
bis former law partner. (Applausc.)
This loan. Hopkins asserted, could have
been taken in this country alone. The
President and secretary Of the treasury
made q contract that would be condemned
by the country, and the Presidents res .sa . mes
- misleading the people by the assertion
that sI6 600, 900 might be saved.
.The President should not be permitted
to prostitute the interests Of the country,