The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-02-11
cARLIsLE ON FINANCE.



Given In the Hause Committee.
WAsarsGToS Ciry. Feb. 10. The COM
mittee on judiciary has made public the
stenographic report Of the secret hearing
before 1t by Secretary Carlisle some time
ego, in which the latter's views aud policy
on financial qnestioos are set forth. To
questions by memb4s of the committee
Carlisle said that tie effect Of coming the
seigniorage and issuing certificates against
it would be. as the Certificates called for a
dollar, as II they cdkne in for redemption,
and as there were nk dollars behind them
he would be compelled to redeem them in
gold or whatever else he might have. 1t
would take about two years to coin the
silver for that puspo.e. There was not
silver on hand for the purpose, because GER
titicates had been Issued against the silver
coined up to within s.. 600 900 or S. 0co, 600
to the total. Ii would not do to issue GER
titicases on the uncdined seigniorage, as
they would be greatly discredited in the
public mind. TheySwould call for silver
dollars, but there Would be no silver dol
lars to redeem them. and it might become
necessary to redeem them in gold. II all
other coinage ceased and the mints were
pushed it might b possible to coin 49,
coo 900 in silver per keas. On the bond
question Carlisle said his purpose in SELL
ing bonds was to (edeem United States
notes and treasury ss<stes and r.plenfsh the
reserve. but he might be confronted with
very serious question as TO what he
would do il congress fails to make proyi-
sion to supply the deficiency. He contin-
ued:
Suppose, for instance as usual, con-
gress makes an appropriation for pensions
to be paid out of any money In the treas
ury not otherwise appropriated, and sup
pose the secretary finds there 10 no money
in the treasury not otherwise appropri-
ated. except money realized from the sale
of bonds. He will be confronted with the
question whether he will stop payment on
pensions; whether he will stop payments
on public buildings. or rivers and harbors:
whether he will withhold salaries. or use
the money in the treasury not otherwise
appropriated. l believe IL Is my duty to
pay pensions and all other public obiiga.
tons. aud unless congress stops me shall
do so. While | stay here l shall endeavor
10 maintain the credit of the government
by paving Its obligations. / would not use
the proceeds of the bonds II 1t were possi-
bic to avoid 1t, out shall not let the obli-
cations of the government go to protest
and fail TO pay the appropriations of con-
gress for legitimate purposes and for car
rying on the expenses of the government
as long as there is dollar in the treasury"
Carlisle also stated his reluctance in is
suing bonds as TO the most desirable kind
of bonds TO be issued. He said he favored
short-time bonds with low rate of inter
est. in small denominations, which be be-
iieved the people would take who have
money in savings banks. They could be
sold or used in payment Of expenditures
and redeemed out of future revenues.
In reply TO a question by Bailey as TO
how bonds were to be paid, Carlisle said
the proposal called for gold coin.
Baiiey-This Is the first time there has
been any discrimination.
Cariisie-No; Secretary Sherman sold
bonds for gold coin.
Baiiey--f mean this is the irst since the
act of ISIS was passed. When Sherman
sold those bonds gold was the only legal
tenaer.
Cariisle-What the secretary of the
treasury said is substantially this: "Con-
gress has invested me with authority To
issue bonds and sell them for coin. Twill
rot issue bonds and sell them unless the
purchaser viii give gold coin for them,
because gold coin Is what is needed 70
maintain resumption and parity of the
os,es-The bonds are made payable in
coln.
CArlisIe-Not gold coin bat in coin. When
congress compelled the secretary oil the
treasury by law TO buy siSs 200. 900 worth
OF silver 1t specified in definite terms the
buying of silver, and he did is.
Carlisle's views were then secured on
the plan of another Issue of greenbacks
He was asked If il would no. be feasible
and practIcab,e TO authorize the secretary
of the treasury to issue treasury notes
sufficient TO relieve the wants and uecessi.
ties Of the treasury.
Carlisle-Why. OF course. coz greSs could
do that, and the secretary Of the treasury
would use them IL you ask me as q
financial question whether think il wise
for congress TO authorize an Issue of szsJ.-
0sl.o in greencscks / should say no. be-
cause believe N the hrst plsce there Is
an ample supply Of mosey in the country
fer tns business beng transacted. and
grea, deal mere than Is beiEg used.
At the conclusion OF the hearing Car
Isle expressed himself vigorously as 10
the validity of the present bond issee.
lie was asked by stone IL the bonds woaid
be c.ouded by legal questions. Carlisle
said no, hecsase IL the secretary al sh.
treasury should issue those bonds aud
take the god and dump il in the middle
of the Atlantic il wcu.d not vitae the
bonds
Great strenSth OF the sesxmfo<age Eli.
wtsaIxsroS CIrY. Feb. la.-- The strength