Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-02-18
Mr.. GRAY'S DEFENSE
He Asserts That the Presidents A.
ton Was Justified.
THE BOND CONTRACT HAD TO BE MADE
Criticisms of Other Senators Are
Replied To.
NJ ALTERS IN THE HOU S b

The Senate was a center of interest to-
day. as a result of the warm discussion OF
the financial question and the personal crit
icsms of the President on Saturday Mr..
Villas (Wis) had a roll Of manuscript ana
a pile of books before him, ready to take up
the financial debate where it was left off at
the previous session.
Mr. Stewart (Nev) was the first to con-
tinue the criticisms on the bond contract.
His resolution was called up declaring that
the government had no legal authority to
buy gold coin in preference to silver coin
for any cause whatever. Mr.. Stewart spoke
Of the humiliating position of the United
States in being held by the throat by a gold
combination which had the power to Co
cree and squeeze" the country up to next
October, when the contract expired
MIR. Grny's Defense.
Mr., Gray Oel), who is recognized as
close to the officers of the administration,
then took the floor He expressed surprise
that the Senators from Massachusetts
dodge and Colorado ONolcotU had so
far gone out of their way to indulge in
violent assault on the executive. The
President had performed a duty incum-
tent on him by law. That law was such
that any invasion of it would have been
a plain dereliction of duty. Congress had
made this law. 1t made 1T necessary 10
niaintain the parity between the metals
by redeeming in either. No sooner had
Congress assembled than the President APP
pealed to Congress concerning the financial
conditions. bill was framed on the lines
suggested by that MESA ge and the House
saw fit to. reject it. Again the President
appealed to Congress. Mr. Gray read from
the Presidents message urging patriotic
and bipartisan action to meet the emer-
gency. Does the Senator think" inter-
jected Mr.. Stewart, that the President
has re-establiShed confidence in affairs by
hiring the assistance of a foreign syndi-
Cate?"
Mr.. Gray said he would consider that
point later. Proceeding with the Presi-
dents message, the Senator read the Spe-
cific statement that the law did not provide
for bonds in gold. At that time Mr.. Lodge
had not complained of the conditions clear
ly set forth by the President but had wait
ed until now to present a scathing denun-
citation.
tinued Mr.. Gray, having thus presented
the situation to both branches of Con-
greSs-in appeals almost pathetic lii their
earnestness-the President was left alone
to struggle with the condition. and to meet
it,"
The Senator told of the tremendous
drains OF gold from the treasury. running
up to 100000 in one week shortly before
this contract was made. From December
1 last up to the time of the contract Sl7.-
GtouoO was withdrawn, and of this only
one-half was exported. showing that the
other half was boarded at home.
Some Questions Put to Him.
HAS the Senator lost sight of the fact"
asked Mr.. Wolcott, that the Secretary of
the Treasury has reported to us that he
had used slo5 100000 of that gold for cur
rency expenses
This did not divert Mr.. Gray from his line
of argument as to the gold Withdrawals for
,S nd hD1 al
here l want to ask" said Mr.. PETER. rs
there any law which compels the Secretary
of the Treasury to pay demand notes in
gold, instead of in siiver?'
Il have not said there was any such
law replied Mr.. Gray. Il know of no
such law. But the obligation to maintain
the parity between the metals makes ii
absolutely incumbent to treat these metals
equally.
Mr. Hill rose at this point 10 say that
the question of Mr.. Wolcott should not go
ury had not reported to the Senate. said
Mr. Hill. that he had used $loJ,nn,ooo of
the gold for current expenses. Mr.. Teller
wanted to read the Secretary's report but
Mr.. Gray would not yield.
CouId Not Hold Out Longer.
"And this drain of gold continued" re-
sumed Mr. Gray, until the subtreasurer
at New York reported that they could not
hold out another day. Then came the great
question. Was the country to so to a sill
yer basis between shutdown and sunup. or
was it to secure the gold absolutely neces-
sary to maintain the parity and exchange
ability between the two metals. What
would you have said if the President had
not met that emergency and performed his
duty? Would we nave heard such amin
adversionS as those of saturday Tor
not rescuing the country from the grave
crisis then presented? Action was impera-
tive and quick action. 1t was to be done in
tventy-four hours. What time was there
to advertise for bids for gold?
Mr. Gray forcibly urged the gravity OF
the condition, which compelled speedy ac-
ton and an appeal to those who mad
the gold.
Mr. Wolcott here came forward with an
other question.
"Does the Senator know of any one other
than Russell Sage who has hoarded sold
Il do" said Mi Gray. But I do not
it would be no pleasure if | did
The Senator said that in the stress of the
administration it could not go on the mar
ket with a popular Loan so called. 1t mad
m po to the bankers who had the gold.
The Senator spoke of the former trans
actions with them, and the fluctuations on
the bonds after their issue. tie knew
nothing of their motives, yet the demands
they made We're doubtless margin 10
protect them from fluctuations.
Reply to MIR. Lodge.
Returning to the attacks made on the
President Mr. Gray said the Senator from
Massachusetts Q4odge) had declared that
the President had made "wanton attack
on orr credit" The gravamen OF these
accusations against the President was that
he had plainly told Congress that the gold
bcnds we're worth more than coin ponds.
WAS any one so foolish as to doubt tnls
fact, The President had stated world
vide fact And yet this was denounced as
n .swanton attack on our credit. ~
Mr. GRAY urged the support OF the Hill
resolution for paying in the best money IN
use Without it there was only the good
faith of the administration to protect the
holders of these bonds in case or difference
between the metals. If silver was at
nremj,1m would any Senator suggest that
oIr obligations should not be paid In silver:
RepIying to a query by Mr.. Stewart. Mr.
GRAY declared that If we accepted the con-
tention of the Nevada Senator the United
States would write in Its bonds: These
bonds payable in silver If silver is at dis
Mr.. Hoar Mass.) asked If 1t was decent
that the contract had been so made as to
bring into question the good faith OF the
government.
Mr.. Gray vigorously resented the use of
the word decent as part Of this line Of
attack on the President.