The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-21
CLEVELAND AND CARLISLE AT OUTS.
The President Wants Bonds Issued and ths
Secretary Refuses To DO So.

CLEVELAND AND CARLISLE AT OUTS.
The Presidents Wants Bonds Issued and the
Secretary Refuses to DO So.
Special To the indianapolis Journal
WASHINGTON. April 20.-Presdent Cleve-
land and Secretary Carlisle have reached
the point in their relations of absolute dis
agreement. They have come to the place
where the autocrat of the White House
says "You shall" and the insubordinate
Secretary CT the Treasury deGantly replies
IL WON'T" President Cleveland has called
Secretary Carlisle 20 the White House sew
eral times this week and has said TO him IN
substance and IN the most positive terms.
mir. Secretary. / have decided that the
Treasury Department must issue bonds,
and. moreover. large amount of them. 10
my opinion that step IS essential TO main-
tain the gold reserve. and IL is also my
opinion TO eDcroach upon that reserve
would mean financial disaster To this
imperative announcement Mr.. Carlisle has
invariably replied in effect: Mr.. President.
i do not believe either in the necessity of
issuing bonds or that l have the legal
authority to do so. If you order bonds to
be issued they must be Issued by another
Secretary of the Treasury" -
The lay of the situation lies in the fact
thas Mr.. Carlisle only consented to resign
from the Senate and to enter the Cabinet
after reaching distinct understanding
that this administration would throw it's
influence il the direction. at least so long
rs the condition should be snspicious, of
making Mr.. Carlisle the next candidate of
the Democratic party for the presidency.
IL is Mr.. Carlisle's opinion that to Issue
bonds would make it simply impossible for
him to become q candidate before the peo-
pie. He would be held responsible, as
Eecretary of the Treasury. for the first
increase OF the interest-bearing public
debt within many years. In TACT. Mr.. Car
Isle Is said to have explained this frankly
10 the President. adding that he under
stood the temper of the next Congress; that
an overw helming majority of its members
only reflected the opinion of the still
greater majority of their constituents In
opposing any increase of the public debt.
If he were TO Issue bonds. he said. he might
visit the Capitol In vain next winter TO
persuade the Democratic Senators and Rep
resen tatiyes to vote tor administration
bills" on revenue and finance The tenn
porary relief IN the financial situation af-
forded Dg the incoming OF gold from the
West has for the moment postponed the
question of whether or not Nix. Carlisle
Will yield to his official su perior.
STATEMENT FROM MIR. CARLISLE.
Secretary Carlisle tonight made the fol-
lowing statement regarding the financial
situation:
In the exercise of the discretionary power con-
ferred upon the Secretary OF the Treasury by the
act OF July Il, $780, he has been paying gold
chase or silver bullion, and he will continue 10
do so as long as be has gold lawfully available
for thatpnrpose. Under this process the govern
ment has been. and Is now paying gold for silver
bullion and storing the silver in Its vaults,
where 1t Is useless for any purpose or circula-
ton or redemption as iron. lead or any other
commodity.
The government, In the first place. issues
coin treasury note IN payment Tor silver bullion,
aud then the coin treasury note IL presented at
eui'treasury and the gold Is paid out for Ii; so
that the effect is precisely the same III the gold
were paid directly Tor the silver III the first
Instance. About SsOO,00O of the gold which
Withdrawn from the subtreasury on last
Tuesday for shipment abroad was paid out on
these coin treasury notes. No order has been
made to stop the payment OF gold upon these
notes; nor has any one been authorized TO say
that such an order would be issued. The pur-
pose OF the government TO preserve Its own
credit unifnpaired and maintain the parity OF
the two metals ny all lawful means will not be
abandoned under any circumstances.
In view of the existing legislation, the only
question for consideration Is as TO the measures
that ought TO be adopted TO insure the accom-
lions there is. OF course for wide differences
or opinion. The total stock oi gold coin and gold
bullion now in this country. including what is held
10y the treasury. as well as what Is held by the
banks and individuals, amounts To about $74O,-
100000. When came into the Treasury De-
partment on the eth day OF March, the amount
OF free gold on hand had been reduced to $685.
600. but by arrangement with Western banks it
was increased until on the tirst
$s.0OO.O0O. Then heavy shipments began To be
made, and two days ago we had only about &c.,
600. but now it amounts TO 1855 900. after de-
Quoting what has beon Withdrawn from the sub
treasury to-day for shipment. Arrangements
procured from the West, and hope that suf
ncient quantity will be secured 10 keep the gold
reserve intact There il gold enough in the
country TO meet all the requirements OF the sit
uation. and II all who are really interested in
maintaining SOUND and stable currency would
assist the Secretary OF the Treasury TO the ex-
tent or their abilities the existing difficulties
would soon be removed.
In addition to this statement Secretary
Carlisle said that $500, 900 In gold had been
taken out of the subtreesury in New York
to-day. for export. The class of money
paid into the subtreasury for this gold
Withdrawal included 800, 900 in gold cerrif-
tcates. which. TO that amount did not re-
duce the gold reserve because they them
selves were practically gold. So the actual
gold reduction OF the day was only $500 600,
leaving the balance as stated above. Thus
Is the first considerable amount of gold
certificates paid into the subrreasnry for
gold export for many years. aud encourages
treasury officials TO hope that the banks.
seeing the situation, Will continue tn pre-
cont gold certificates in part pay ment. at
least. for gold Withdrawn for export.