New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-19
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IBY TELEGRAPH TO THE rRIBUNE.l
Washington, Jan. 1S.-Secretary Carlisle ~.
ceved to-day a number Of offers for his bona
One offer for 100000 at us. The Score
tary believes from offers already received thee
the total offerings will aggregate nearly S20o.
0CO 000 and that the price will reach 120
1t was to be expected that the announce
ment of a $5ooOoOOO bond issue would be re-
ceved with more or less oren hostility by the
Democratic and Populist elements in Congress.
The Democrats in the House are already on rec
ord through the majority Of the judiciary Com
mittee as strictly opposed to the Of the pro-
ceeds of the proposed sale Of bonds for any
other purpose than the redemption OF Outstand-
ing greenbacks. and the great majority OF the
Democrats in the Senate committed to the
same view. Mr.. Bailey's resolution reaffirmins
this Democratic view Of the limitations Of the
Secretary's powers is now before the House
Judiciary Committee. Two similar resolutions
denouncing Mr.. Carlise's proposed conversion OF
Resumption act bonds into available cash were
offered in the Senate to-day one by Mr. PETER.
of Kansas. and one by Mr. Allen, of Nebraska.
Though both these critics of the Secretarys
course are ranked as Populists. bitter opposition
tO the new bond issue was also expressed on the
floor Of the Senate by Mr.. Morgan. who in de-
Democrats caustically assailed the proposed sale
Of bonds as one more evidence Of the Admus-
trations utter subseryence II Wall Street in
fuences
The bond issue is not likely 20 be interfered
with by Congress. however, for the reason that
the Republican minority will unite so.dy with
a small fragment Of the majority TO sustain the
Secretary in a measure which he seems to
think essential to the maintenance of the public
credit Secretary Carlsles prudence. too In
springng his offer of bonds at time when the
Democrats Of the House are tied hand and foot
by the Wilson bill order Of business will pre-
vent action by the opponents of the bond issue
until any effort to stop the sale Is absolutely
hopeless The general drift of opinion on the
bond issue may be gathered from the following
expressions Of opinion:
OPINIONS of SOME CONGRESSMEN.
Chairman Wilson. of the Committee on Ways
and Means said that Congress should have
given authority TO Secretary Carlisle to issue a
low-rate short-tme bond; failing to receive that
authority. he assumed. the Secretary had done
the best he could under existing conditions.
The sale OF bonds" he continued. was nsces-
sary. and the Secretary has done the right
thing. There is. / suppose no serious conten-
ton that he has not the legal right TO s~ll
bonds That was settled by the report m de to
the House at the last Congress by Judge
Cuberson on the question of the power OF the
Secretary to use the proceeds of bond sales under
the act of January II. 1875. for any other pur-
pose than that of maintaining the gold
reserve"
Bourke Cochran. another member Of the Conn
mittee on Ways and Means, cordially approved
the proposed sale OF bonds. 1T was the only
thing to do" he said. "A constantly increasing
deficit means the speedy insolvency OF the
Treasury. and that would be followed by uni
versal bankruptcy. An empty Treasury would
cause a total suspension of credit, and there
would be no business transacted. | make
no comment upon the legal aspects OF
the case although in an article which
| wrote last March on the financial situation,
stated that the sale of bonds the most
practical manner Of relief open to the Treas
ury Department"
Mr.. Breckinridge. of Arkansas. one of the
Democratic members of the Ways and Means
Committee. finds nothing 10 critcise In the
Secretarys action. He thinks the Secretary
has an entire right sell bonds TO maintain
the redemption fund. but not for any other pur-
pose Mr. Breckinridge was asked If any menu
ber OF the House was likely to ofer resolu-
tion preventing the Secretary from borrowing
the money mo member of the Ways and Com
mittee" he replied. lis expected 10 take such
|
who is thinking of doing So.
DEMOCRATS WHO OPPOSE THE PLAN.
From talks had with Democratic Representa-
tives to-day It is manifest that many of them
question the Secretarys authority for his call.
one Eastern Democrat said that there was
probably a faint color of law for making the
issue but that inasmuch the Government
needed the money badly no one could impeach
the Secretarys motives or would try to prevent
him from obtaining the funds necessary To tide
the Government over the present emergency.
Mr. Bland is opposed 10 the bond ISSUE
There is no law on our statute po9ks ne
said. ITO keep up the parity or TWO KINDS OF
money. Furthermore the issue was entirely ul-
necessary. The coinage of the silver now in the
Treasury would furnish money enough TO run
the Government until mex. winter. BY that
time It would be known what our tariff and tax
legislation would yield
Mr. Oates a member Of the Judiciary Conn
mittee does not approve of Secretary CarisleS
bond issue. Congress he says. might author
ize the coinage Of the segniorage now in the
Treasury, amounting TO about S5o.~o.ooo. ana
issue notes against IT, The Government has THIS
silver. and if 1t can be used. he is of the opinion
that It should be. He does not think the Govern
ment should borrow under these circumstances.
Representative Amos j. Cummings Of New
York. inclined to question the authority OF
the Secretary To sell bonds under the conditions
of the call "The Resumption act" said Mr..
Cummings. does say he may sell bonds bearing
interest at a certain rate per cent for certain
purpose But Mr.. Carlisle imposes conditions
which practically change the character or the
bonds But II Is necessary. no doubt 10 procure
money from some source. and this probably is
the most available"
THE sEcRETARY's POWERS UNDER THE ACT o.
1873
Representative Cuberson. chairman OF the
Committee on the judiciary. which is now in.
vestigating the mower Of the Secretary OF the
Treasury to sell bonds under the act Of 1870. in
IA report made To the Lid Congress. referred 70
by Chairman Wilson. sad after quoting the
section referring to the sale of bonds:
This provision of the act contemplated ana
authorized a fund for redemption purposes. TO
consist OF. first, the surplus revenues from time
to time in the Treasury. and second, the pro-
cceds Of the sale of bonds TO the extent neces-
sary to carry the .,ct into full effect. There 10
no limitation upon the authority OF the Secre-
tary of the Treasury to sell bonds Tor the pur'
poses OF REDEMPTION under this act. but the pro.