The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-06-06
CALL 1T REPUTATION
And Says Would Bring on a
Panic Unprecedented.
Earnest Solicitude for the
Greenback lis Expressed.

Washington. June chairman Ding
lev of the house ways and means com
rnittee has made O report to the house
on the senate resolution to prohibit
the issue of bonds without the consent
of congress The statement is signed
by the eleven Republican members and
two Democrats. Turner Of Georgia and
Cobb Of Missouri, who concur in the
recommendations without endorsing
the argument
The report says. Tt is not proposed
by the senate bill to repeal so much
of the resumption act as authorizes the
secretary of the treasury to borrow
coin to maintain the redemption funds;
yet this is the legal effect of the Ian
guage employed The attempt to cloud
this repeal by reference to further au-
thority of congress is meaningless YER
biage. for every one knows without
declaration TO this effect, that congress
may re-enact a law which mad 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repealed and the repeal is proposed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 ait present consti-
tuted VIII never authorize an issue eff
bonds to maintain the redemption
fund.
To propose this when there is. and
has been for three years. a large def
cheney of revenue inevitably raises the
inquiry whether it is not the dehberate
purpose OF the promoters of this oil To
plunge the government into repudiat ion
and cepreciate the greenbaclzs-
one excuse which has been given for
the passage of the bill is that the secre-
tary Of the treasury has sold bonds to
EEnulcales instead Of oIer1ng them first
as popular loans. While we sympathiza
with this, set this affords substantial
ground for amending the act Of 1873
80 as to require bonds issued under I'll
to be first offered to the American peO-
pie and not ground for absolute repeal
Of all authority to borrow in an ext
genCy.
Another excuse is that the secretary
of the treasury has Indirectly issued
and sold bonds to meet the deficiency
or revenue by using the redeemed
United states legal tender no IS for
current expenses and thus placing
them in q position for a second re
oemption- This affords grounds fer
such legislation as viii make It prac-
tically impossible to continue this prac-
tice. but not satisfactory ground for
taking from the secretary of the treas
urT all power to borrow for the purpose
Of maintaining the redemption fund.
after referring to the house bills for
g popular loan for revenue, the report
continues.
Instead Of concurring in these two
bills. the senate refused to provide the
needed revenue or TO authorize the is
sue Of temporary certificates of fndebt-
edness thus practically indOrsing the
Eecretary's course. inasmuch as in the
absence of both revenue and authority
to borrow to meet the deficiency the only
resource open to the secretary is the
use Of the redeemed United States le-
gal tender notes.
Our criticism of the secretary is not
that he used the redeemed United
states legal tender notes to meet the
deficiency in the absence of revenue
and authority to borrow for the distinct
OBJECT, for no other recourse has been
open to him unless the government
was TO stop, but the administration and
secretary have refused to recognize the
tact that the revenue has been and still
Is insufficient to meet the expenditures
ana have discouraged all steps to pro
VIDE sumcient revenue thereby practi-
cally insisting on a continuation Of the
conditions which made it necessary to
indirectly use for current expenses the
proceeds of bonds sold for redemption
purposes.
Practically. therefore. the senate bin
takes away from the secretary the DOW
er to borrow either sold or silver to
maintain the coin redemption fund in
the face of the fact that the govern
ment owns only PSI millions of silver
dollars and a. little over 100 millions of
gold that can be used for redemption
purposes. which fund would disappear
ia q very brief period if it should be
understood the power to borrow in an
e11gency had been abroEated The in
evttable result of such a reckless course
would be reputation by the govern
ment, depreciation Of the currency and
such G. panic in the country a was new
er before experienced"