The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-06-06
BUTLER'S ANTI-BOND BILL BAD
THE HOUSE WAYS AND MEANS
COMMITTEES AGAINST III.

Republican Members of the Com
mIttee-The Report Prepared by
Chairman DingIey.
Washington, June Representative
Dingley Of Maine, the chairman OF the
committee on ways and means. presented
to the House this afternoon the majority
report Of the committee on the Senate
bill ITO prohibit the further issuance or
interest-bearing bonds"
The report recites the resumption act
Of 1915, which provides for the coin re-
demption of United States legal tender
notes on and after Jan. /, 1879, and au-
thorizes the Secretary of the Treasury
TO provide a redemption fund from the
surplus revenues and by the sale Of bonds.
and which successfully established and
maintained the parity Of gold from 1870
to 1898 from the surplus revenue alone
Mr.. Dingley then points out that tho
Senate bill proposes TO repeal so much OF
the act as authorizes the secretary to
borrow money 10 maintain the redemption
fund. While the bill does not use the
word repeal" yet this, in the commit
tees opinion, is the legal effect Of the
language employed. He characterlzcs this
attempt to cloud this repeal by the refer
ence TO further authority Of congress, 20
as meaningless verbiage." For surely" q"
the report continues, every one knows
without a declaration to this effect that
congress may re-enact law which has
been repealed; and the repeal Is proposed
just as congress is ready TO adjourn for
six months and with the knowledge that
the Senate as at present constituted
would never consent to authorize an IS
sue Of bonds TO maintain the redemption
fund.-
The report next shows that the plenary
power embodied I'm the resumption act
was given TO the Secretary of the Treas
ufy, not only because the knowledge that
ne had such power would inspire conf
dence i'm the public credit but also because
eXigencies for the replenishment OF the
fund would inevitably arise when con-
gress was not i'm session.
d. II a proposition" the report continues,
" had been made to deprive the Secretary
OF the Treasury Of the power to borrow
money for maintaining the redemption
fund between 1873 ana 1898 Il might have
been plausibly argued that there was then
no necessity for borrowing, because the
surplus revenues were ample for that pur-
pose. But now TO propose this when there
Is, and has been for three years a large
denciency Of revenue, and consequently
not dollar can be added to the redemp-
tlon fund from that source. and when
tnere IS no other resource at hand for
maintaining the redemption fund, except
70 borrow, inevitably raises the inquiry
whether it is not the deliberate purpose
Of the promoters Of this bill to plunge
the government into reputation and de-
preciate the greenbacks.
What makes this inquiry all the more
pertinent Is the fact that majority Of
the Senate have already refused to concur
IN the House bill 10 provide $40000000 more
revenue to avoid further deficiencies, or
even to take up the House revenue bill
ana consider and amend Ii with counter
proposition looking to more revenue, and
lhaJ too, in the face of the fact that
the deficiency In the past three years,
including Sll 100000 Of matured Pacific
railroad bonds has exceeded $50, 600, 900,
and In the last six months over $40 00O. 900
one of the excuses which have been
given Tor the passage Of the Senate bill
10 deprive the Secretary of the Treasury
of the power TO borrow In order TO main
tain the redemption fun, as conferred
upon him by the resumption act of 1875
is that he has sold bonds to syndicates
instead of Offering them first as popular
loans: while We sympathize with this
criticism yet this affords a substantial
reason for amending the act Of 1875 so as
to require bonds issued under Ii to be
first offered to the American public, but
not for the absolute repeal of an authority
to borrow In an eXigency. The House
nVe months ago, sent to the Senate a bill
50 amending the act Of 1875 as 10 require
the Secretary, OF the Treasury to first
offer any bonds issued as popular lOan
but the Senate refused TO concur IN IT,
The antagOnism between the House and
Senate Is emphasized by other citations
act upon measures passed by the House
looking to the ameliOratiOn of the hnan-
cial stringency of the government. and
the report then proceeds to say; "The
last and perhaps most prominent, excuse
for the proposed repeal or so much of the
redemption act Of 1875 as authorizes the
Secretary of the Treasury to borrow coin
TO maintain the redemption fund Is that
by using the standard silver coin in the
treasury In the redemption of greenba acks
there Will be no necessity of borrowing
gOld.'
The report argues to demonstrate that
of 100000 silver dollars in the treasury
all excepting 100000 belong to the hold
ers, of outstanding silver certificates
and If the government wished to use sill
yer il would have to borrow IT, the same
as gold. AS to seigniOrage, the report
argues, that there can be no seigniOrage
until there is coinage and that therefore,
the so-called seigniorage on the silver bull
lion held in the treasury is no resource
to the treasury. Practically, therefore" 4"
the report says. the Senate bill under
consideration takes away from the Sec
retary or the treasury the power TO bOr-
row either gold or silver to maintain the
coin or redemption fund In the face Of the
fact that the government owns only 28-
900 silver dollars, and a little over $780,
900 Of gold that can be used for re-
demptiOn purposes, which fund would dis
appear IN a very brief period il It should
be understood that the power to borrow
money in an eXigency had been abrogated
the ineVi table result of such reckless
course would be reputation by the gov
such a panic IN the country as was never
before experienced"
The report concludes with the declara-
tion that in the present condition Of the
country, with a deficiency Of revenue and
distrust prevailing to an alarming ex-
tent, "it would be a most serious mistake
not TO use a stronger term, TO take away
almost the only prop that now remains
for the maintenance at par Of the legal
tender and notes which form so important
a part Of the currency of the United
States"
The bin is reported back therefore, with
and this recommendation the l3 republican
members of the committee endorse Two
democratic members. Messrs. Turner of
Georgia and Cobb Of Missouri. concur in
the adverse recommendation, but without
endorsing the report.
MissOurrs PopuIists.
St Louis June 5.-Chairman Roselle Of
the state committee Of the peoples party
has issued a call for a state convention TO
naslf an IaHHa~ lQ