Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-06-06

80 PiuS A'NfuueS ana by the sale of bonds
ahe which successfully este bllshed and
H'd,ntained the parity OF gold from 1910
10 1893 from the surplus revenue alone.
Mr. Dingley then points out that the
senate bill proposes TO repeal so much
OF the act as authorizes the Secretary 10
borrow money to maintain the redemp-
uoh fund. While the bill does not use the
Wotu repeal yet this. in the commit
ices opinion. Is the legal effect Of the
Language employed.
lie Characterizcs this attempt to cloud
this repeal by the reference TO the
iurther authority Of Congress" as
meaningless verbiage." For surely"
me report continues. "every one knows
without declaration to this effect that
congress may re-enact n 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been repealed.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 az at present Constituted
would never consent 90 authorize an
issue OF bonds to maintain the redemp-
tion fund"
The report shows that the plenary power
embodied In the resumption act was given
TO the Secretary OF the Treasury. not only
because the knowledge that he had such
power would inspire confidence in the
public credit. but also because exigencies
for the replenlshment Of the fund would
inevitably arise when Congress was not
In session.
is REPUTATION PURPOSED?
'Tf a proposition" the report continues.
had been made 10 deprive the Secretary
of the Treasury of the power to borrow
for the purpose OF maintaining the re-
demption fund between 1879 and 1899. IL
might have been plausibly argued that
there was then no necessity for borrow
ing, because the surplus revenues were
ample for that purpose. But now to pro-
pose this when there is. and has been for
three years, a large deficiency OF reve-
nuos. and consequently not n dollar can
be added TO the redemption fund from
that source. and when there is no other
resource at hand for maintaining the re-
dempton fund except to borrow. inevi-
tably raises the inquiry whether # is not
the deliberate purpose of the promoters
of this bill 10 plunge the government into
reputation and depreciate the green
backs.
What makes this inquiry all the more
pertinent is the fact that a majority OF
the Senate have already refused to con-
cur in the House bill TO provide SiO0000OO
more revenue to avoid further defcien-
cies, or even TO take up the House revenue
bill and consider and amend it with a
counter proposition looking to more revc-
nue., and that too. I'm the face of the fact
that the deficiency in the past three years,
including $n,0OOCOO Of matured Pacific
railroad bonds. has exceeded one hundred
and fifty millions. and i'm the last six
months over twenty millions.
"One Of the excuses which have
been given for the passage OF the Senate
bill TO deprive the Secretary OF the Trea-
sury Of the power TO borrow i'm order to
maintain the redemption fund as cen
fcrred upon him by the resumption act
OF 1875, is that he has sold bonds TO syn
dicates. instead Of offering them first as
popular loans. While we sympathize
with this criticism. yet it affords a sub
1875. so as to require bonds issued under
IT to be first offered to the American peo-
pie. but not ground for absolute with
drawal Of all authority 10 borrow in an
eXigency. The House five months ago
sent TO the Senate a bill so amending
the act Of 1875 as to require the Secretary
of the Treasury 10 first offer any bonds
issued as a popular loan. but the Senate
refused to concur in H."
The antagonism between the House and
Senate is emphasized by other citations
Of refusals on the part OF the Senate 10
act upon measures passed by the House
looking to the amelioration Of the finan-
cial stringency Of the government, and
then the report proceeds to say:
USE OF SILVER COIN.
1.-THE last. and perhaps most prominent,
excuse for the proposed repeal OF so
much Of the redemption act of 1875 as
authorizes the Secretary Of the Treasury
TO borrow coin to maintain the redemp-
tion fund. is that by using the standard
silver coin in the Treasury in the cedemp-
tion of greenbacks. there would be no
necessity for borrowing gold"
The report argues TO demonstrate that
OF 36i 0000Oo silver dollars in the Treasury.
all. excepting 100000 belong to the hold
ers of outstanding silver certificates. and
If the government wished 10 use silver, It
would have 10 borrow IT,. the same as
gold As 10 seigniorage. the report argues
that there can be no seigniOrage until
there is coinage, and that therefore the
so-called seigniOrage on the silver bullion
held i'm the Treasury is no resource TO the
Treasury.
Practically. therefore. the report says.
the Senate bill under consideration takes
away from the Secretary of the Treasury
the power to borrow either gold or silver
to maintain the coin redemption fund. In
the face Of the fact that the government
owns only 2S 100000 Of silver dollars, ana
a little over 100 100000 Of gold. that can be
used for redemption purpOses-which fund
would disappear in n very brief period
II 10 should be understood that the power
TO borrow money in an exigency had been
abr0Cated. and the inevitable result Of
such a reckless course would be repudia-
tOn by the government, depreciation OF
the currency and such a panic in the
as was never before eXpe-
rienced.
The report concludes with the declara-
tion that in the present condition Of
the country, with deficiency of revenue.
and distrust prevailing 10 an alarming
extent. II would be a most serious mis-
take. not 10 use a stronger term, to take
away almost the only prop that now re-
mains for the maintenance al par Of the
legal-tender notes. which form so inn
portant part Of the currency Of the
United States
The hin is reported back. therefore. with
a recommendation that 1t do not pass,
and this conclusion the thirteen Repub-
lican members Of the committee endorse.
Two Of the Democratic members Of the
Messrs. Turner, Of Georgia,
and Cobb. Of Missouri, concur in the ad-
verse recommendation, but without en-
dorsing the report.
CASE OF sEiBOARD AIRLINE.
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II IL Turned over to Department of