The Portland daily press., 1895-02-06
WASHINGTON NEWS.
Reeds Substitute for Banking and
Currency Bill.
THE FINANCE COMMITTEE ARE
STILL AT LOGGERHEADS.

Are IN TaVOT Oh ETeG SIlVGr DuU Cdnuob
Agree on a Bi1I-secretary OF the Navy
Has Heard Nothing Regarding the
Seizure of American Naval Officers in
China.
Washington, February 5.--The House went
into committee OF the whole on the currency
and banking bill. Mr.. Reed. Republican of
Maine, said it was possible tie science of
statesInanship might be exhibited in the bill
under discussion. but the art of statesman
ship certainly was not. What was needed
was q practical measure that would meet
the crisis, II there were crisis in financial
affairs. However much Man might ap-
prove of what was in the bill. 1t were the
better part for him to oppose and criticise it,
if it contained anything that. in his
opinion would prevent it's becoming law.
If the President and the party in power had
addressed themselves in different manner
to the treatment of the situation that con-
from ted them, the conditions would been
different. Legislation to provide the
necessary amount of reyene to meet the ex-
penses would have prevented the present
difficulties The cause of the trouble, Mr..
Reed said. was not the existence of $780,
mere bagatelle compa1 ed with the ability Of
the country TO pay. The first cause Of the
trouble was the passage of the tariff bill,
which had SO far resulted in aRdefc1enCy OF
S1u7, ,OOO, 600 in the revenues The next and
cause was the management Of the
treasury, by which the business depart
ment, in the absence Of revenues. drew up
on he reserve Of the banking department,
instead of borrowing money on its own
account to meet the demands upon 1t. The
President in his exigency. said MI. Reed,
appealed to Congress, and. they are face
to face with the situation. The Repu blican ms
are willing to help the country. irrespective
of party advantages, but it must be done in
accordance with what they believe to be
right, proper and honest. To
MEET THIS CkISlS
it is not necessary to go into a general
financial and currency legislation. General
financial legislation could not be had at the
dictation of any man, no matter who he
might be, Such legislation is not likely to
receive the necessary attention at this
stage of the session. The present bill had
ceased to be a practical measure, for even
were it to pass the House, it coui1 go no
further.
The trouble, Mr.. Reed said. was due to
the reissuanoe of greenbacks after being re-
deemed, together with the failure of the re-
ceipts to meet the expenditures. In support
of this position. Mr.. Reed quoted Horace
| White and the figures of the treasury.
| These latter showed that since this admin
istration came into power, the operations OF
| the treasury had resulted in the govern
hv of
S359, ,OOO, 900 demand notes. for which there
was 10 gold to meet them. In view OF what
we had met and vanquished in the matter
of finance. Mr.. Reed remarked. that ought
not to stagger us. That was not what
staggered us, that was due TO mad rush of
people to exchange greenbacks for gold.
THE REMEDY FOF THE TROUBLE
was, in his opinion, to separate the TWO
departments of the treasury and give to the
business department sufficient receipts to
meet the expenditures. There was in the
accomplishment of this, he admitted /.
difficulty arising from pride, he might
call it, in the pr esent advantageous tariff
bill. To admit that the bill could or should
be changed would in yolve confession, and
confession might'b suicide. Q-aughterJ Be-
side that he continued we must pay some
attention to the constituted authorities Of
the land, For the next two years they
would comprise the President and the Secre-
ta1y of the Treasury. who had decided
views upon the subject. The latter. with
the prescience which, Mr.. Reed said, he
wished for the sake of the sinful world had
not been so complete. 20 uaughter) had stated
that the treasury would enjoy surplus Of
| %ha the Draaant
calendar year of S23. .563. .O23. Mr.. Reed said
he was glad that the Secretary did not go
into cents. that might cast doubt upon the
accuracy of his calculation. So if the Presi-
dent and Secretary would not have addi-
tional revenue, and said they would have a
surplus. the situation must be treated on
that basis. Otherwise party feeling would
be aroused and the House would come to
no conclusion. proposition to meet the
difficulty which he had to make, said Mr..
Reed, was that to meet the deficiency in
receipts the Secretary of the Treasury
should be aut horized to issue three per cent
certificates of indebtedness in sums OF 500
or 800 and multiples thereof. leaving the
gold in the banking department untouched
for red dempition of greenbacks. This would
enable the people to determine whether
they really wanted gold in exchange for
green backs. and their possession in the
treasury might be guide to know wLat to
do with them in future. The surplus which
Secretary Carlisle predicted. if 1t should
come to exist. could be used to take up the
Gel ticates of indebtedness which might be
of two years duration or even less if de-
sired. The advantage this plan presented,
over the present plan of procedure, popular
rumor crediting the issue of 100000 ,OOO
within few days, was. said Mr.. Reed, that
these would take place of the long time
gold bonds. Should the government desire
to redeem the latter they would go up and
the premium would have to be paid for
them. Why is not that solution of our
trouble in every way. asked Mr.. Reed.
Mr.. Pence-"How do you provide for the
redemption of the certifioates?"
Mr. Reed-''In coin the same as all other
obligations of the government are redeem
able. The bill which contains my sug-
gestions avoids all questions which hinder
the passage of the pending measure. 1t
avoids the argument that by providing now
for the issue of distinctly gold bond the
distinction thereby is created against all