The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-15

the conditions which compelled the Secre-
with the syndicate for the purchase or goia.
He said there was no dearth OF revenues III
an available cash balance in the treasury
q $ls5. 900 600 larger balance than On On June .t
co 1897 by Ss 10000 when it Was vas a.s"p IL. ~
gold reserve stood at $42, 600 Mr. VIII
son reviewed the history of the gold re-
Of specie payments. That reserve had not
been threatened until the panic OF lssa. M
00e of gold had been withdrawn In the
course of that panic dS90) the xS4-0voVO or
bank trust funds had been passed 70 ,l,s me
ayilable assets of the treasury. Since then
bonds had been sold three times TO re-
flemish the gold in, the treasury twice
within six months The previous operations
Of the treasury had resulted, he said. in
the United States exchanging its own bonds
for its own gold, and now Secretary Car
iis,e had done what Secretary Sherman did
time and time again when he was refunding
the public debt-he has purchased gold IN
other markets than our own. Mr.. Wilson
contrasted the situation of the treasury IN
1852 with its situation now in regard to the
Then no greenbacks were being presented
for redemption and the reserve was only
necessary for practical purposes TO support
the outstanding silver amounting. to but
s. % a00,0@0. To-day il supported the entire cur
tenGs fabrie S,eoooo od ostssandsng s m o sesaf af
overvalued silver and all the national bank
notes outstanding.
You admit" interrupted Mr.. Dingley.
that si1i n00,60o of gold have been purchased
to maintain the gold reserve. How. did the II,
ficiency in the revenues of $l09, ,G0oeOOF
CORNIRED BY DINGLEY.
"Stin harpng on my daughter" replied
Mr.. Wilson with wave of his hand, but
Mr.. Dingley insisted upon an answer to
his question, and aIr. Wilson replied that,
as he had stated on a former oceesion 1t
was partly true that by the operation 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 transferred to other accounts and had
been used to defray current expenses. He
called MIR. Dingleys attention to the fact
that under the national bank act OF 1871,
the bank notes being redeemab-e by the
treasury, could be used by conversion to
drain the treasury of gold as we'll as the
Mr.. Dingley, however. still persisted on
a more specific answer to his original aues-
a large amount of the gold received from
the sale of bonds had been used TO meet
,the deficiency in the revenues
Then Mr.. Dingley, recurring TO Mr.. Will
sons former statement about the transfer
Of the bank trust fund to the available as
sets of the treasury, declared that not one
dollar of that fund had been used to de-
fray current expenses.
.The difference between Your methods
and ours replied Mr.. Wilson, amid a
burst of Democratic applause, lis that
when we needed money we borrowed 1t.
When you needed it, you borrowed it from
Mr.. Dingley insisted that the fund was
not used until 1893, whereupon Mr.. Wilson
cited him to Secretary WINDOWS report,
stating that on Sept. 10, 1890 the only avail
able cash in the treasury was was the tn am amount
count in the preceding July.
This ended the fencing between the oppos-
ing leaders, ard Mr.. Wilson continued his
argument where it had been broken off by
Mr.. Dingleys interruption. Secretary Car
Isle In borrowing this gold had only. done
what Mr.. Sherman had done. He had sold
four-per-cent thirty-year bonds at the rate
of 1902 with the right to substitute at per
three-per-cent. gold bonds. IL the govern
ment continued to maintain it's traditional
policy the four-per-cent bonds would be
virtually payable in gold because the gov
rency on a parity. AS the bonds will be
paid in gold it was the sense of the ways
and means committee that there ought to
be no hesitation in making these bonds
payable in gold and saving to the govern
ment the interest charges amounting to
over $6.oe0000. The contract is already made
by which gold is being put into the treas
ury and placed on vessels for shipment TO
this country. 1t cannot be set aside: it
The question presented here Is whether we
viii substitute for a four-per-eent. coin
thirty-year bond three-per-cent. gold
bond.
MIR. Wilson asserted that for twenty-five
years the gold standard had been the prac-
teal money basis in this country: that
gentlemen confused the standard of pay
ment with the currency of payment. Two
experiments had failed to give relief, and
as 1t had under Secretary Sherman, to a
special contract.
Mr.. McMillin asked if it would notebe pos
sible TO raid the gold reserve in the future
as 1t had been in the past Mr. Wilson re-
piled that it has undoubtedly been possible
since the first day of the resumption of
specie payments, but said it would not be
done il we can maintain confidence so that
our currency will be as good as gold.
CLEVELAND EXCORIATED.
Mr.. Hopkins said that the resolution was
should, by the extraordinary methods of
President Cleveland and his Secretary of
the Treasury change its established policy
under thirty-five years of Republican rule
and make its bonds payable in gold. Why
did not the President, he asked call the
attention of these foreign capitalists to the
fact that this country had settled policy2
had made had been true, that coin was re-
ally as good gold in the contract and
President told these capitalists SO? II OPP
pose this resolution, he continued ..be-
cause cause it It will m in my inagment destroy the
1t would be necessary to put the word gold
into every bond. The bondholder was di-
rectly interested in driving this country to
a silver basis and sending gold to a pre-
MUM. The Rothschilds, by this method.
Secretary Folger had extended the vast sim
of $500 0,0000 00o fOur-per-cent. bonds at 3 per
cent. in the open sunlight before the Amer
the loans of this administration had before
been made in. the open market with the
American people in the light of day. They
had been made for ten years at less than
per cent. Now there had been made a
contract with foreign syndicate by which
the government received $950o.000 less than
similar bonds We're selling for in the omen
market on the very day the President had
sent his contract to Congress with tie bribe
of S16.000.000 to get its consent. A secret
loan was negotiated for higher rates than
any civilized county paying its debt
higher even than bankrupt Egypt little
Norway any other country.
The President said the speaker
''penned this message not from patriotic
purposes, but for politics, and tha. alone
He wanted to throw the responsibility on
Congress of making this loan negotiated
by his former law partner. fAppiause) /
say for one he asserted, 'and I hope /
speak for the entire Republican party. and
the great mass OF the Democratic party
that I cannot be made particeps criminis to
this attempt of the President to prosti-
tute the financial standing of this great
country"
Mr. Cox, of Tennessee-How does it hap
pen that by this contract this syndicate
will have an option on future bond issues
by the government?
Mr. Hopkins-Nobody but this syndicate
and the President answer that. loud
applause)
Mr.. Powers sent to the Clerks desk to be
read an amendment providing that nothing
in the resolution should be construed as