Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1894-02-14
CARLISLE ON FINANCE.
The Secretary TeStlfeS Regarding Coinage
of Silver and a Bond Issue.

of Silver and Bond Issue.
tary Carlisle s exact views and policy on
financial questions, including silver
seigniorage, bonds and finance in gen.
eral, are set forth and amplifed in an
important document which reached the
House committee on judiciary to-day.
The testimony of the secret hearings
shows that concerning the coinage of
silver selgnIOrage. 1t is as follows:
Representative Oates - want to ask
you IT there IS any objection to the PROPOSE
tion about coming the seigniorage and is
suing certificates against that?
Secretary Carlisle-Well, the effect of that
would be that the secretary of the treasury
would issue silver certificates calling for dol
lars: suppose when there were
no dollars behind them and if they came
in for redemption. as they might, tie secre-
tary of the treasury would be compelled, /
suppose, to use gold or whatever else he
hadtO redeem them
Mr.. Boatner-COuld YOU not coin the sill
yer and use that?
Secretary Carlisle-Yes, in about two
years; it would take about that time.
w. A. Stone of Pennsylvania-Hav you
not got enough silver to redeem it?
Secretary CarllSle-NO, sir; certificates are
outstanding against what we have, except
about So, O0O, 600 or SO, 600, 600.
Mr.. Somewhat would be the objection
to issuing certificates on account of the
seignorage?
Secretary Carlisle was going to state
that it we should issue certificates with
nothing behind them but bullion, l think
they would be greatly discredited in the
public mind
Mr.. Stone-And in order to keep up the
credit you would have to redeem them i'll
gold?
Secretary Carlisle-They would haveto be
redeemed in something.
MI. Stone-lf you redeemed it in silver it
would be discredited, and you would have
to redeem it i'll gold?
Secretary Carlisle-They would call for
silver dollars, and there are no silver dollars
to redeem them.
In answer to a question as to how fast the
coinage of the segniOrage could be pushed,
Mr. Carlisle said: IF all other coinage were
suspended at the minis, | estimate that we
could coin about 1000 900 silver dollars per
month, or S48. 200, 900 year"
The bond question was treated very elab-
orately by Mr. Carlisle. His purpose as to
using the proceeds of the sale of bonds is
sharply set forth in the following colloquy:
Mr.. Stone-I understand your purpose is
simply to sell bonds to redeem United
States notes and treasury notes and the sur
plus to replenish the reserve fund?
Secretary Carlisle-That is my purpose;
but | want to say to you, gentlemen, that
the secretary of the treasury may be con-
fronted hereafter with a very serious cues
ton as to what he will do III the event Con-
grcss fails or refuses to make provision to
supply the deficiency Suppose. for in
stance, Congress passes a law which it does
every session, making appropriations for
some particular purpOse-the payment Of
pensions for illustration-and makes it the
duty OF the secretary OF the treasury to pay
them out OF any money in the treasury not
otherwise appropriated, which is the Ian
guage of all your appropriation laws. and
the secretary OF the treasury makes a requi-
sitIOn upon the treasury department for
money 10 pay pensions. The secretary OF
the treasury finds no money in the treasury
not otherwise appropriated except
the money that has been realized from tin g
sale of bonds. He will be confronted with
the question whether he will stop the pay
ment of pensions, whether he will stop paw
ments upon public buildings whether lie
will stop payment for work upon rivers and
harbors, whether he will withhold salaries,
or use the money III the treasury not other
wise appropriated.
Mr.. Boatner-Would you consider it i'm
proper to give your opinion as to the duty
OF the secretary Of the treasury?
Secretary Carlisle-I will give it very
plainly. | believe that it is my duty to pay
pensions and all other public obligations,
and unless Congress stops me l shall do so.
While | stay there | shall enGeavor to
maintain the credit of the government by
paying its obligations.
Mr.. BOatner-Out of the proceeds of the
bonds which you propose to sell
Secretary Carlisle-I would not use the
proceeds or bonds if it were possible to
avoid it, but | would not let the obligations
of the government go to protest and fail to
pay the appropriations made by Congress
for legitimate purposes and for CARRYING on
the expenses of the government as long as
there is a dollar in the treasury.
Mr.. Carlisle further stated his reluctance
in rcsorting to bonds. AS to the kind of a
bond which Mr.. Carlisle thinks Congress
should authorize there was the following:
Mr. Boamer-The plan that you suggest
to remedy this trouble would be for the
secretary to issue bonds for specific pur-
pose; is that the point?
Secretary Carlisle think a short time
bonds should be authorized bearing a low
rate Of interest, to be Used in small denomi-
nations, which | think would be taken
largely by tie people who have money in
savings banks, and the secretary could sell
them or use the proceeds in payment of ex-
pcnditurcs, and redeem chem out Of the fur
Their revenues. That was my recommends
ton on the subject-simply because | saw
It was impossible for Congress to provide
by taxation any revenue which could be
collected in time for this fiscal year.
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