The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-09-14
nNLAWEHL R0NDS


THE suggestion made by Senator
PETER in an interview, that the recent
bond issues were illegal, is not likely to
be called in question. Nobody ever
thought these issues of bonds were war
ranted by law. Nobody has had the
effrontery to suggest that the bonds
were legally issued except Cleveland
and Carlisle, and they know better. Re-
pudiation, however, as suggested by the
senator, would also be illegal Two
wrongs can never make right. A prin-
cipal is always held responsible for the
acts of his agents. When the agents
are dishonest they are usually dis.
charged and in some instances they
are punished, but their bills contracted
in the name of the concern are paid
In this case the people of the United
States are the principals and Grover
Cleveland and John G. Carlisle are their
agents. The remedy is apparent They
should be convicted of the crimes of
which they are known to be guilty, dis
charged from service, and properly
punished
That portion of the statutes under
which Mr.. Carlisle pretends to have
found the authority for the issuance of
bonds is found in what is known as the
resumption act, and reads as follows:
And on and after the first day of jan
uary, ammo Domini, 1879, the secretary of
the treasury shall redeem in cOiE, the
United States legal tender notes, then
outstanding on their presentation for re-
demption at the office of the assistant
treasurer of the United States in the city
of New York, in sums of not less than
$50. And to enable the secretary of the
treasury to prepare and provide for the
redemption in this act authorized or re-
quired, he is authorized to use any sur
plus revenues. from time to time in the
treasury not otherwise appropriated and
to issue, sell and dispose of at not less
than par in coin either of the descrip
tions of bonds of the United States de-
scribed in the act of congress approve d
July IA, 1870, entitled IAN act to auth
orizs the refunding of the national debt
with like quality privileges and redemp-
tions to the extent necessary to carry this
act into full effect and use the proceeds
thereof for the purpose aforesaid.
This law provides that bonds may be
issued when necessary for the redemp-
ton of treasury notes and for no other
purpose. All government oblig cations
are payable in coin, gold or silver. Will
anybody pretend that there was neces-
sity for an issue of bonds when there
were still about $50 100000 in gold, and
more than $5O0,0JO,0OO in silver in the
treasury. Mr.. Carlisle had no legal
right to issue bond as long as there was
a dollar of coin of any kind in the treas
ury not represented by certificates, and
even then until legal tenders had been
presented for which there was no coin
left to exchange. From the fact that the
law provides that the legal tenders when
redeemed shall be reissued, it is scarcely
possible that such situation could ever
have arisen. They could have been used
for paying governmental expenses, and
all the coin coming in could have been
used for the purpose of redemption. The
we'll known fact is that the gold derived
from the sale of bonds was used for pay
| ing expenses, and that is what the bonds
were sold for primarily. incidental to
this were the large profits accruing to
the friends of Mr, Cleveland, and the
fixed purpose of destroying the use of
| silver as money.