The herald., 1895-02-19
Warm Discussion Over Finance
in the Senate
GRAY DEFENDS CLEVELAND
Some Very Sharp Personal Criticisms
Among Members
The Presidents Bond Message Discusssd-The
Government in the Grasp
Of Gold Bugs


the center of interest today, as a result of
the warm discussion.on the financial ques-
tion and personal criticism on the Pres-
dent, Saturday Stewards resolution de-
claring the Government had no legal au-
thority to buy gold coin in preference to
silver coin, for any cause whatever, was
called up. Stewart spoke of the humiliat-
ing position of the United States in being
held by the throat by a gold commission
which had the power 'to coerce and
squeeze" the country up to next October,
when the contract expired.
Gray then took the floor. He expressed
surprise that the Senators from Massa-
chusetts (Lodge) and Colorado (Wol-
cott) had so far gone out OF their way to
indulge in violent assault upon the Ex-
ecutive. The President had performed
the duty incumbent on him by law. That
law was such that evasion would have
been plain derehction of duty.
The full Senate Committee on Appro-
rrations today decided to report an
amendment to the sundry civil appropria-
tion bill for $780, 900, 900 certificates of in
debtedness of the denomination of $50, to
run for two years and draw 3 per cent in
terest and be good only for the purpose of
supplying the Treasury deficiency. The
bill win be an amendment and was re-
ported late in the day
The law made it necessary to maintain
parity between metals by redeeming in
either. No sooner had Congress assembled
than the President appealed to Con
gress concerning the financial condi-
tons. A bill was formed on the lines
suggeste in that message, and the House
saw tit to reject it. Again the President
applied to Congress. Gray read from the
Presidents message urging patriotic and
unpartisan action to meet the emergency.
Does tine Senator think, " interjected
Stewart '-the President has established
confidence An affairs by hiring the assist
ance of a foreign syndicate?"
Gray said he would fully consider that
point later. Proceeding with the Presi-
dents message the Senator read specific
statement that the law did not provide for
bonds payable in gold. At that time
Lodge had not complained of the condi-
tions clearly set forth by the President,
but had waited until now to present a
scathing del,unciaton Having pre-
scented the situation to both branches of
Congress in appeals almost pathetic in
their earneStness, said Gray 'the
President was left alone to struggle with
the condition and meet it,. The Sena-
tor told of the tremendous drains of gold
from the treasury, running up to ST. 600,
600 in one week, shortly before the con-
tract was made From December 1st to
the time of the contract $17, ZOO, 900 was
withdrawn and only half exported show
ing the other half was boarded at home,
Quick action was necessary to prevent the
country going to a silver basis. There
was no time to advertise for bids for gold
Has the Senator lost sight of the
fact, asked Mr.. Wolcott " that the Sec
retary of the Treasury has reported TO us
he had used $105, p0, 900 or more gold for
current expenses?"
This did not divert Mr.. Gray from his
line of argument as to the gold with
drawals for export and for boarding it at
at horne.
Right here I want to ask" said Mr..
PETER, lis there any law which compels
the Secretary of the Treasury to pay
demand notes in gold instead of in sill
ver?''
Il have not sand there was any such
law" replsed Mr.. Gray, 81 know of no
such law. But the obligation to main
tain the parity between the metals makes
it absolutely incumbent to treat these
metals equally"
Mr.. Hill rose at this point to say that
he question of Mr.. Wolcott should not go
unanswered. The Secretary of the Treas
ury had not reported to the Senate, said
Mr.. Hill, that he had used S1o5, 900, 900 for
current expenses.
Mr.. Teller wanted to read the Secre-
tary's report, but Mr.. Gray would not
yield.
Mr.. Gray then urged the support of the
Hill resolution for paying in the best
money in use.
Mr.. Hoar Republican, of Massachu-
sets, asked if it was decent that the con-
tract had been made so as to bring into
question the good faith of the Govern
ment.
Mr.. Gray vigorously resented the word
decent" as a part of this line of attack
on the President.
Mr.. Hoar modified the query so as to
TO ask him whether it was reasonable
that this course shall be taken.
Mr.. Gray declared that the real attacks
ON the credit of the country were not from
the President, but from Senators who pro-
claimed their criticisms to the world
Mr.. Gray closed with much vgor.
We have been dumb during his grave
emergency" said he. I'VE have left the
President to fight this battle alone for the
credit and honor of the United States and
the people OF this country will not forget
that the American Congress deserted the
President in the hour of trial.
Mr.. Sherman (Rep., Ohio) said: "The
real question is shall this Government
pay its obligations in gold or silver con?'
/ wish to point out, - said Mr.. Sher-
man. that i'll every act, every loan,
every sale of bonds since 1869, this Gov
ernment has demanded gold and now
arc we To refuse to pay these obligations
IN the sane coin we received for them?
Il this question is fairly presen ted and
understood by the people, no honest man
VIII sly we should not pay in any other
go II rhan that we received
80 say that such bonds for which
gold was received should not be paid in
gold. was not honest. "
heierrng to the recent bond contrac t,
Mr.. sherman said:
| have the highest personal regard for the