The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-29
CARLISLE GOES TO GOTHAM.
The Bond Issue to Be Talked Over
With The Big Bankers.

A Little Hitch Over the Acceptance
of Checks in Payment of Customs
Duties Also To Be Strengthened
out-Prospeetive Bidders For Bonds
Holding on on Account of the In
juncti on Suit.
Washington, Jan. 28.-Two reasons i'm
PEELED Secretary Carlisle to go to New
York last night. One was to straighten
out the hitch that has occurred between
the collector of customs at New York and
the importers regarding the acceptance
of cheeks in payment of certain dues, and
the other was to ascertain the pros
poets of bids for the new bond
issue. Both these subjects are somewhat
allied. Under the old system in vogue in
New York, checks were received by the
collector in payment of certain duties. A
court decision, recently rendered, made
the collector responsible for all checks,
whether the banks cashed them or not.
This responsibility Collector Kilbreth,
after losing several hundred dollars, de-
clined to assume. The importers then, as
a matter Of retaliation, ceased to pay
their customs dues in gold checks, but de-
posted therefor silver certificates.
GOLD FALLS OFF.
While before this order was issued to
refuse checks, gold payments averaged
for the first twenty-five days 70 per cent.
they ran down the day the order was put
into effect TO less than one-half of ! per
cent. In a few days the loss in gold for
customs receipts aggregated more than
81 O0,000 In the present drain on the
gold for ordinary expenses of the
treasury, this state of affairs
A nf
transfer order was suggested for the
payment of customs dues and was thought
TO be agreeable to the impoP~cs banks
and treasury officials. Some of the i'm
porters, however. still object, it is said,
and Deputy Assistant Treasurer Muhle-
mans visit here on Saturday last had for
its object a settlement of the matter. He
returned with Secretary Carlisle to New
York last night.
BOND BUYERS TIMID.
The action of the House committee on
the judiciary, in reporting the Bailey
resolution favorably to the House, has
had the effect of deterring any large bids
so far from being received for the new
bonds. The action, too, of the Knights
of Labor in seeking an injunction
against Secretary Carlisle to prevent
him from issuing the bonds has
had a disquieting effect. Treasury
officials have no doubt of the power of the
secretary to use the gold derived from
these bonds for any legitimate govern
ment expense, and Secretary Carlisle will,
while in New York, assure all prospective
bidders that they need have no fears on
any score about bidding for the bonds,
and that they viii be amply protected.
AN ERRONEOUS IMPRESSION.
New York, Jan. 2S.-Secretary Carlisle
tonight made the following statement
''It. has been enormously published in
some newspapers that the committee on
judiciary of the House of Repre-
sentatives had agreed to and reported
resolution denying the authority
of the Secretary of the Treasury to issue
and sell bonds, as proposed in his recent
circular. And these publications have
evidently made an unfavorable impress
sion upon the minds of some who con-
templated making bids for these secur-
titles.
THE BAILEY RESOLUTION.
"The only resolution in relation to this
subject that has been before the commit
lee is as follows:
Resolved That it is the sense of the House
of Representatives that the Secretary of the
Treasury has no authority under the existing
law to issue and sell the bonds of the United
States except such as is conferred upon
him by the act approved Jan. IA, 1866, en-
titled an An act TO provide for the resump
tion Of specie payments, and that the money
derived from the sale OF bonds issued under
that act cannot be lawfully applied TO any
purposes except those specified therein
1T will be seen that this resolution as
sumes that the authority to issue bonds
was conferred upon the Secretary of the
Treasury by the act of Jan. IA, 1875, and
that such authority still exists. but it as
serts that the proceeds of the bonds can
not be lawfully used except for the pur-
poses of resumption"
THE POINT MADE BY BAILEY.
The official stenographic report of the
proceedings in the committee when the
Secretary of the Treasury appeared be-
fore it last Thursday, shows that his
authority to issue bouds was not cues
toned by any member, the only question
being whether he could use the proceeds
for any other purpose than the redemption
of United States notes. Mr.. Bailey, the
author of the resolution, distinctly admit
ted the existence of the authority. Ad-
dressing the secretary, Mr.. Bailey said:
1.-The resolution does not impeach your
right to issue bonds. 1t expressly recog-
nizes it, but questions your right to apply
the proceeds TO any purposes except those
specified in the act"
THE QUESTION NOT NEW ONE.
"The Judiciary committee Of the House
examined and reported upon the same
question during the Eifty-second congress,
and it then conceded that the au-
thority existed under the act of 1876
The question as to authority of the Secre-
tary of the Treasury TO use the money in
any particular manner or for any par
ticular purpose is wholly distinct
from the question as to his
authority to issue and sell the
bonds No matter what he may do with
the money, the validity of the bonds will
not be effected, and there is, therefore, no
reason why anv one should hesitate to in
vest in these securities on the ground that
the proceeds might possibly be used for
other than redemption purposes"
THE INCOME TAX.