New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-05
THE QUESTION or BORROWING.

Senator Elk!ns's resolution had an ovcrwhelm-
Ing ma jority for its consideration. ana the mo-
ton TO defer action on 1t until Tuesday pareN
prevailed by one majority 1t became evideht
that the Senate wanted stronger and more ei-
fective action. one Of the main objections pehS
thar q mere resolution declaring the Will OF IN"
Senate alone would have no binding force. ana
micbt he disrecardcd by the President, II IN the
evercisc Of his Judgment he thought il necessary
~ horrow money and deal with syndicate as
boforo This objection can readily be obviaied
on Tuesday by putting the prohibition in the
form of an net. which the House will undouDi-
edly he rs ready the Senate to pass without
dolov Good Judgment should be exercised IN
rho form Of the bill but if 1t is not open to OBJ
icc,ion ON that score IT ought to have in each
house a majority large enough to pass it over
veto
The speech of Senator Elkns brought ont
clearly the grave objections to the course winch
the President has contemplated. These ooJcc-
tions go far beyond the question OF decent IT,
snoct for Congress while it is engaged in en-
dcayoring TO provide for public needs II tiat
reason did not exist, it would still be "mhehlN
proper to prohibit any further issue OF pon"S
for the sole purpose Of covering up dchcieh'!
of revenue And 1t would he eminently proper
also. TO provide that any further issue OF pohuS'
IL actually needed. should be offered hrst 10 the
peoplc. in small denominations II desired anu III
such manner that the Government itseil Hi!
realize as much rs possible of the enormous prohl
which the Presidents syndicate gives away 10
favored bankers
II docs not seem 10 have been observed by
Senator, that the law now In force, under WHICH
the 1 per cent bonds were ISSUED last FEBRUARY!
proyidcd for small denominations. The authority
under which the President acted was that OF inc
resumption law Of 1915 january IN, which EN-
nou,orod him "to issue sell and dispose OF, at not
Gloss than par in coin. either OF the descriptions
.or honds Of the United States described in the
"act OF Congress approved July It, lS'o WIN
"like quantities. privileges and exemptions Inc
ac, Of July H. 1870 provided in Section Tor the
issue Of coupon or registered bonds OF the Oniteu
States. and of denominations or S'o OF SONIC
multiple Of tina sum payahic III the
"rreas,lrv of the United States after thirty years
from the date Of their Issue. bearing interest
Eat the rate OF per cent per annuh. ''her
provisions need not here be recited; II Is enough
that the President has abundant power uiiuer
This act 10 issue bonds OF small denominations
70 any one who may wish them, ana mus I'D
make the loan in every sense popular one
The act gives ample power to sell III any man
ner tina, the Secretary Of the Treasury may pre-
fer.
Thus II only remains for Congress to provide
,hot M bonds shall be issued unless for rcdcnp-
ton purposcs solely and strictly, and thlt none
shall be issued unless they are frs, offered To
popnlar subscription, perhaps at every p"Stofil'e
in the United States. and in denominations rs
low as $50 If 10y any desired That Kind OF loan
would reach the gold held by individuals in small
boards and would give Government the dement,
~ many millions which syndicate operations be-
STOW upon favored bankers. Probably II would
not reach the small boards rs enectually as II
the rate Of interest were lower, so that the In
dlvIdual purchasing would not have to pay much
above mar for the bonds. But If 1t IS lhprac
,icsble 10 authorize new issue OF bonds al MS
session on moro favorable terms. 1t Is ~ least
possible TO prohibit tho Offering Of bonds under
the old authority except for proper purpose
and exccpt under circumstances which permit
the people to realize the profit which me toy
eminent has hitherto been giving To iav'red
hankers