The herald., 1895-02-14
Dissenting Members of Congress
on the Bond Issue
REASONS FOR OPPOSITION
Action of the Executive Not Binding on
the Government
Objection Is nade on Five Grounds, the
Principal One of Which Is
s-. the Time Limit

mittee was submitted: Owing to the
limited time allowed for securing
the report, the undersigned dis
senting members of the committee are
precluded from presenting their views
with that elaboration which the impor-
lance of the subject would otherwise JUS
tify; but they beg to state briefly the most
important reason which led them to dis
approve of the measure recommended by
the majority of the committee:
First-The issue of bonds of any kind is
only needed to replenish the gold reserve;
and the gold reserve only needed replen-
ishing because the Secretary of the Treas
ury redeems United States and Treasury
notes in the coin selected by the note
holder. The note holder has no legal
right to choose the coin in which the obi
CATION shall be needed, but has been per-
mitted to exercise that right by policy
inaugurated by the Treasury Department
at or soon after the date of the resump-
ton of the specie payments.
The opinion OF the Secretary of the
Treasury recently given is clear on this
point.
No one contends that the executive de-
partment of the Government can bind
the Government or pledge its faith and
credit by the adoption of such policy.
To so hold would be to assert
that the executive can make and
repeal laws without the concurrence of
the Senate and House of Representatives
Believing that the Secretary of the Treas
ury has now by law the right to redeem
legal tender notes by the payment of
either gold or silver coin, whichever is most
convenient for the government, and be-
lieving the exercise of this discretion by
the Secretary of the Treasury is abso-
lutely necessary to protect the Govern
ment from organized and unorganized
raids upon the coin reserve, we are not
willing to endorse, directly or by implca-
ton, the administrative policy which
precipitated the present conditions.
"Neither are we wiling by authorizing
bonds for the purchase of gold, to pledge the
government to policy which discrimin-
ates against silver as standard money
and recognizes gold as the only money of
ultimate redemption. So long as the note
uolder is allowed to choose the coin in
whichshe is to be paid, so long will it be
lutllC W dbtClAPo w Ahdi1lpoll Soio 1C-
reserve.
We have no hesitation in declaring it
as our conviction that there is no remedy
permanent in character or promising in
results except an immediate exercise by
the Secretary of the Treasury of the right
to redeem United States notes and treas
ury notes in standard silver coin
whenever it is more conven-
lent for the government to do
so, and we further believe that the greatest
danger which can possibly follow such a
course is infinitely less than the evils
which are certain to follow an adherence
to the present plan:
Second-If we were willing to authorize
the issue of bonds at this time to pur-
chase gold we would still be opposed to
bonds payable specifically in gold because
an issue of such bonds would either
pledge the government to redemption of
all obligations in gold or make discrim-
1nation against coin obligations
now outstanding. There is no question
that the issue of gold bonds now
would at once be followed by demand
for an act making existing bonds payable
in gold, and it would be urged that it
would be disastrous to depart from the
policy of gold bonds when once naugur-
ated just as it is now urged that it will
be disastrous for the Government to re-
sumo a discretion which has been tenn
porarily surrendered to the note holder.
1t is impossible to er-estimate the in
fluence which would be exercised by
the issue of gold bonds by the Govern
ment because such an action would
naturally and necessarily encourage, if
not actually compel, the issue of gold
bonds by all public and private corpora
tions, and the making of gold contracts
by individuals generally. Such an in
creased strain on gold would manifest
itself in further rise in the purchasing
power of the dollar and in a further dis
tressing addition to the load of debt now
borne by the people.
Third-The minority is opposed to the
issue of bonds running for thirty years.
Fourth-If we were willing to authorize
the issue of thirty-year gold bonds we
would still be opposed to recognizing or
ratifying contract as harsh in it's terms
and as imperious in its demands as the
contract insisted upon by the bond pur-
chasers.
Fifth-If we were willing to approve of
such contract under ordinary circum-
stances we would still be opposed to APP
proving it when made by sovereign
Government with foreign tinanciers under
circumstances which suggest a desire on
the present subject of another country to
purchase change in the financial policy
of this nation for a sum stated.
further reasons were necessary, they
might be found in the fact that the con-
tract providing for the sale of coin bonds
at about 104 1-2 which would sell in the
market at about 119; in fact that contract
agrees to sell 30-year gold bonds, drawing
per cent interest for less than the gov
eminent six months ago sold 12-year
coin bonds and in the addition fact
that foreign investors are by the contract
given preference over American inves-
tors in the purchase of any bonds
which may be issued before August and
are also given a preference now over
the American investors who but a short
time ago stood ready to purchase more
bonds than were then offered.
[Signed] William J. Bryan.
Justin Whiting.
Dr. McMillin and Mr.. Wheeler, while
from the majority of the COM
mittee, reserved an expression of their
views until they have an opportunity to
present them more at length upon the