St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-04-17
Discussion OF Carlisle's Right
to Dip Into the Reserve
Gold Fund.
Pertinence Of the Report OF
the Judiciary Committee
Of the House.
The Majority Found That the
Reserve Fund Must Be
Kept at $1O0,OOO,O00.
The Minority Takes a View
Almost Dramatically OPP
posed to This.

WASHINGTON, April 16.-The suspen
sion of the issue of gold certificates by
Secretary Carlisle, as announced yes
terday. recalls the representations made
last July by the judiciary committee of
the house upon the resolution intro
duced by Mr.. Dockery, of Missouri.
This resolution instructed the COM
mittee to inquire and report whether or
not, under the act to provide for the re-
sumption of specie payments, the secre-
tary of the treasury has the right to use
the proceeds of any money in the treas
ury, arising from the sale of bonds or
otherwise, as authorized under section
5 OF said act, for any purposes other
than those mentioned in said section 8.
The majority said: There is no linz
itation upon the authority Of the secre
tary of the treasury to sell bonds for the
purposes of redemption under the act
of 1879, but the proceeds derived from
such sales cannot be used for other than
redemption purposes" They also said
it was the intention Of congress to fix
The Minimum Amount
of this reserved fund at 100000 900 gold
and gold bullion and to maintain it at
that sum. Up to and including the year
1891 the total amount of gold certificates
issued under the act OF 1882 was $685.
$4,000, and the majority said: "These
gold certificates could not have been
lawfully iScuad 1nIacc or thc TINA of ic
Suance the reserve fund of 100000
gold coin and gold bullion was in the
treasury" AS to the replenishing of the
reserve fund in case of a diminution be-
low the sum of $10O,000,OOO, in
the absence Of available surplus
revenue by the redemption of legal ten
ders, the committee say that ''the sum
should be restored from the current coin
receipts of the government not other
wise appropriated, and when such reve-
nu es are transferred to the reserve fund
they are not subject to be used for any
other purpose" Mr.. Ray, of the minor
ity of the committee, submitted report
upon the resolutions, in which the oper-
ations of the treasury under the acts re-
ferred to were shown at considerable
length and with great detail. The pur-
poses of the laws were also discussed at
considerable length, and
The Minority
came to the following conclusions:
First-That there is nothing in the
resumption act requiring the secretary
of the treas ury to set apart any reserve
fund for the redemption of the United
States notes.
Third-That the only fund actually
provided land which is the reserve men
toned in the proviso of 1882 for the
redemption of United States notes is
the proceeds OF bonds sold from time to
time for redemption purposes. and that
such proceeds may be used at any time
for that purpose, but for no other.
Third-That the power to sell bonds
still exists and is limited only by the
amount Of United States notes out.
standing, less the proceeds of bonds
sold for that purpose and applied or
now on hand.
Fourth-That the secretary Of the
treasury has no power to act apart or
reserve or hold as against appropria-
tions made by congress, or for expendi-
lures authorized by law, any part of the
surplus revenues of the government for
the redemption of United States notes.
He may use such surplus for such pur-
pose, but herein his power ends.