The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-28
Protest Of the Colorado Senator
Against Assertions That the
Country Is Bankrupt.
AMERICAN CREDIT WAS GOOD.
Hill Demanded an Explanation of the
Pointed Allusion to a Glide
Waiter"


articles from the free list and to have rates
of duty imposed upon them in harmony
with the bill just passed by the House.
but on being reminded by Sherman (R.) of
OHIO that the Senate had no right to
originate revenue measure, he put it in
the form of an amendment to the House
bill.
The House bill of yesterday to temper
arily increase the revenue to meet the ex-
penses of the Government and provide
against deficiency, was received from the
House, read a first and second time and
referred to the Finance Committee.
Hale (R.) of Maine introduced joint
resolution authorizing and directing the
Secretary OF the Navy to accept the ram
Katahdin and make her a part OF the
United States navy.
Objection was made to the present con-
sideration of the Joint resolution by Allen
(Pop.) of Nebraska and it went over. Allen
was afterward induced to withdraw his
objection, and the joint resolution was
again laid before the Senate and passed.
The question which now confounded the
country was, Hill said, the manner in
which the gold reserve fund should be
restored. Its PROMPT restoration was the
duty of the hour. 1t could not safely be
postponed. 1t was the duty of the coming
week, not two weeks hence.
AS gold must be borrowed and borrowed
at once, it followed that the Government
should be permitted to make the best
terms possible for the people. Ii it were
unhampered and unrestricted-if it could
ne gotiate and borrow the sum as an in
dividual--the task would be materially
lessened, but it was restricted by laws
passed years ago, which must be revered
and respected. The law which especially
controlled and regulated the method of
borrowing gold to supply the gold reserve
was the redemption act of 1878. That
statute, taken in connection with the act
of July ID, 1870, regulated and prescribed
what bonds may be issued for such
purposes.
81 know he said, "that it has been
claimed that this statute furnishes no
authority for present redemption; but
that contention does not seem to be very
seriously insisted upon. The power is
alleged to exist and has been repeatedly
exercised. No court has decided against
its existence, nor is likely to. The Secre-
tary of the Treasury will continue to exer-
else the power and may safely do so. 1t is
the only feasible method left by which to
protect the credit of the treasury"
Hill declared that this joint resolution
simply enlarged the discretion vested in
the Secretary of the Treasury enabling
him to Issue bonds payable either in gold
or silver at the option OF the holder, but
reducing the rate of interest to be exacted
on any bonds which might be issued con-
tanning such option. In conclusion he
said:
"Why is it not the part of prudence and
wisdom to create bonded bull for the
whole amount of these notes and then
cancel and extinguish them? That sensi-
BILE course would stop the creation of any
further bonded indebtedness. Otherwise,
the process of borrowing and bonding
must continue, to what extent no one can
foretell.''
Hill, at the close Of his speech, moved
to refer the joint resolution to the Finance
Committee, but at the request of Allen
(Pop.) of Nebraska he withdrew the mo-
ton and allowed the joint resolution to
remain on the table.
Teller (R.) of Colorado did not desire to
enter into the discussion of the financial
question now, but he wanted to enter his
protest against the repeated assertions
made by the executive department, and
now in the Senate, that the Government is
bankrupt. He made that protest because
the securities of the United States were
"gilt-edged" securities in every market of
the world, and never had been discredited
by any banker, or by anybody save by the
executive department under this admins
tration and by that mem Der of it who now
appeared as its champ ion in the Senate.
Teller spoke of the contract under which
bonds were issued last year as "a lasting
disgrace, due either to the dishonesty or
imbecility of the administration"
1--WE are told,'' he said, "by the public
press that we are to have another bond
issue, and that it will not be as favorable
at this time as before because the Govern
ment of the United States is in greater
distress than year ago. Against all that
protest.
81 don't intend" Teller continued, ito
discuss the financial question now, but I
do want to enter my protest against this
degradation of our credit. There is not a
financier in the country who will not
tell you that we can place our
bonds on the market at 3 per cent
and sell all that we want to. I don't say
that it might not be well to amend exist
ing laws on the subject; but 1 say that we
are not required TO amend existing law
because of our inability to get money on
our securities. AT the proper time I will
express my opinion upon the department,
from the President down to the tide
WAITER who now assumed to speak on the
financial matter"
The bitter and pointed manner in which
this last sentence was uttered caused a
slight sensation and some quiet laughter
in the Senate chamber.
Teller went on to speak OF remarks at
tributed to officers of the treasury and
particularly to what the Assistant Treas
urer at New York is supposed to have said
owing to hundred millions of American
securities being likely to be thrown upon
the market.
THAT was well calculated" Teller ex-
claimed In tone OF quiet sarcasm, ITO
quiet and maintain the market, was it not,