The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-01-09

The following is the full text OF the
speech OF Senator Stephen D. Ellins,
OF this state. delivered last Friday on
the resolution introduced by him on De-
cember 81. The debate was the most no.
table one that has occurred In the SEN
ate for some time past,
The resolution read us follows:
"Resolved, That II Is the sense OF the
senate that hereafter no bonds OF the
United States shall be sold ut private
sale or under private contract; and In
the case OF any sale OF bonds under e&.
listing laws, the same shall be made on
ly after due advertisement OF such sale
and proposals invited, and then only to
the highest bidder"
Mr.. Elkins, on being recognized by
the president Of the senate, said:
Mr.. President, inasmuch as there
seems TO be some apprehension or some
Misunderstanding In the minds OF sena-
tors MS to the import OF this resolution,
| viii try TO explain 1t. II does not
raise any question as TO the policy OF
selling bonds. II does not question
the action OF the President OF the Uuit-
cd States In proposing to sell bonds. The
simple question raised BY the resolu-
tlon liz one as TO the plan or method OF
selling bonds and 0S 10 what Is best for
the government under the Circumstance
es.
It appears from the papers that the
President In about 20 conclude cons
tract at private sale for the disposal OF
800, 100000 OF per cent bonds OF the
United States. My contention is that
sale OF government bonds under n
private contract will not result Us benz
aH al IN, ka. a q
should be sold after due notice ana ad.
vertlsement TO the highest bidder. In
other words, think Il best and 10 the
interest OF the government that the
bonds be sold directly to the people
rather than at private sale 10 n syndi-
cate. a
Law aud Policy OF the Government In
Selling PabIIe Property.
We have on the statute books of the
United stntesia law In regard TO the
disposition of public property in charge
OF officers OF the government. II has
been the policy OF the government uni
formiy that In the sale Of public proper
~ notice should first be given OF the
time and place as welt us the conditions
OF sale. and that II should be to the
highest bidder. The house blu which Is
now pending before the Finance CONF
mlttee meets this question pointedly,
and provides that in any sale OF bonds
II shall be done by advertisement.
Here we have the expression OF the
house OF representatives by n large ma
jority on this subject. II public Of
fcer OF the government, n quarter
master or any other officer In charge OF
public property. cannot sell even one
hundred or one thousand dollars worth
without giving notice OF the sale and
inviting proposals. or II an officer cnIt~
not buy without first giving notice and
asking hide, why Is II or how Is 1t that
the President OF the United States and
the secretary OF the treasury should be
hedged around by some privilege INT
Ing them out OF this policy or general
rule? Surely tt an officer OF the United
States can not sell n small amount OF
property without advertisement and
due notice. why should the President Of
the United States md the secretary OF
the treasury be permitted TO sell $780,
100000 OF public property without Civ
ing notice OF the time and place Of the
sale and inviting bids from the people?
This. SIR, is the question raised by the
resolution. contend that the uniform
policy OF the government OF the United
States and the law us well In regard to
subordinate officers should be carried
out IN case OF n sale Of bonds. In all
matters OF public concern officers OF the
government from the President down
should take the people into account
and take them into their confidence. es-
pecially in n transaction us large us one
involving St06.000.060.
War Loans.
Now. Mr.. President. We arc not with
out precedent in the matter Of floating
government bonds. We can 20 back TO
the period during and following the
war for presidents. Nearly all the
great loans Of the government In time
OF It's peril were popular loans. refer
10 the two greatest loans. The great
wnr loans were generally noated on n
commission to the bankers, and In most
cases these commissions did not exceed
~ per cent.
It is sntd the total amount OF COM
missions paid for floating the war loans
RgRregatIRg more than two thousand
five hundred millions. was about So
100000, while the profits TO the Syndl-
cate that purchased the SiXty-two mill
Ions OF bonds In February, 1895, under
private contract with the secretary OF
the treasury. is estimated to be greater
1862 i've hundred and fourteen millions
was placed with the people. and the
great 7-30 loan Of lS5i-G5. amounting to
$500 9a2,5DO, was popular loan. As !
understand, the cost to the government
In the way OF commissions Of floating
these two great loans with the people,
amounting TO more than one thousand
three hundred millions, was about one
half Of the estimated profits made by
the syndicate on the purchase OF sixty
ty-two millions they purchased In Feb
ruaty under private contract.
These lonnB were first advertised
They were iionted on the basis Of n paid
commission, and not by selling ont
right 10 Il syndicate under private con-
tract. II the government. when II was
in peril, could make popular lohnB on
1fs per cent commission, why can we
not do the same now In n time of pro-
found peace?
The commissions paid for floating the
great war lOnHB were In most cases
about ~ per cent, and In thoae times I
sldered fair commission. ] insist
now that 81 100000 would have been am
pie commission FOR setting the sixty
tw million of bonds OF the government
that we sold at the last sale and Il
sold ut private sale,
Now, Mr.. President, ] am not here TO
sny how much the syndicate made I'M
der the private contract entered into
Inst February. The trouble II that we
do not know the facts and that is one
OF the objections to such II contract
Ttf0 afIrF tV gtN m R,tl,a li5