Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-18
TALKING OF BONDS.
Congressman Differ in Their 0pin-
ions.
DISCUSSING Mr.. CARLINLES ACTION
Many Approve the Course Taken
by the Secretary.

by the Secretary.
VIEWS OF SILVER MEN.
The expression Of opinion by democrats
on the subject of the call for bonds issued
by MIR. Carlisle is not generally favorable.
AS rule the democratic members Of Con-
gress want to avoid responsibility for an
action the popularity of which is at pres
ent problematical. The chances are that IL
the issue proves successful and not unpop-
ular, the action of Mr.. Carlisle will be as
sumed as the action of the party; but, on
the other hand, If there should be any wide
spread adverse sentiment, 1t is quite evil
dent that there will be disposition to
throw the responsibility on Mr.. Carlisle and
Mr.. Cleveland personally. The opinion is
expressed at the Treasury Department and
by the financial experts in Congress that
the full amount of bonds offered will be
accepted at a premium considerably in ad-
vance of the limit fixed by Mr.. Carlisle.
New York Opinions.
The news Of the issue Of the bond cir
cular yesterday was not definitely known
business. Bankers and capitalists express
ed the opinion that the loan would be sub
scribed several times over in the form in
which 1t had been offered. The policy Of
issuing the bonds was generally and heart
lily approved. There was a rumor that a
single capitalist had offered to take the en-
tire issue at the treasury price OF III. .223.
and 1t was said that J. Pierpont Morgan
was the person referred to. The view was
| IN vrhi @
issue was limited, namely. $50,O0OO00. was
not large enough, as about $16O.OOO.OOO
were needed to provide for immedite ne
cessities.
Mr.. Jesse Seligman expressed his salts
faction at Mr.. Carlisles action. but thought
1t a pity that 1t was not done sooner. He
said that the government should never al
low it's funds to run below the $1oo.ooo.ooo
reserve.
Representative Cannon.
Representative Cannon of Illinois said:
THE bond issue to be made by the Secre-
tary is nominally to maintain the resump-
ton fund and to keep the currency at a
parity, but in reality it is borrowing of
money by the United States to pay the cur
rent expenses Of the government. 1 do not
believe that it was the intention Of Con-
gress in enacting the law to authorize the
borrowing Of money for such purpose but
have no doubt that the appropriation of
the reserve fund to pay the running ex-
penses Is to be blessed by an opinion from
the Attorney General so constituting the
law and to authorize such an appropria-
ten.
.'rhe fact that the democratic party in In
power, and is engaged in enacting revenue
laws that will decrease the revenue $780,
OO0.OOO a year at a time when We are run
ming behind to the extent of $1S,VOu,o0o
renders some provision absolutely neces-
sary to increase the revenues at once by a
taxation or by a forced construction of the
law. The Secretary must borrow money 10
pay housekeeping expenses. The demo-
cratic Congress will not give the legisla-
tive authority; therefore the Secretary, to
save the treasury from bankruptcy and his
party from a more overwhelming con-
demnation, II that is possible, has con-
money.
"A bare announcement" added Mr. Cam
non. by the Secretary Of the Treasury last
May that he would borrow money under
the law OF 1873 IL 1t became necessary to
maintain the currency at par or to pay the
current expense of the government would
no doubt have prevented the money panic
and If the assurance had come from the
legislation until such became necessary to
decrease the revenues not needed, the coun-
try today would have been on the high
road to prosperity. and the revenues would
not have fallen Off. / say again the de-
crease Of the gold reserve fund in the
treasury has been made to pay the current
expense of the government and not to re-
deem the greenbacks or maintain the cur
rency at par.
Representative Dingley.
Representative Dingley Of Maine said, II
have no doubt that the act of 1875 gives
absolute authority to the secretary to is
sue and sell bonds for the purpose of main
tanning the gold redemption fund. 1 doubt,
however. whether that act, properly con-
strued, gives the secretary power to issue
and sell bonds to pay the current expenses
of the government. 1t seems to me that
to accomplish the latter object 1t would be
necessary to obtain additional legislation"
Representative Wilson.
Chairman Wilson Of the committee on
ways and means was not aware until in
formed by a reporter that the call for pro-
posals to purchase bonds had been issued
In explanation, he said his time and at
tention were SO occupied with the tariff bill
that he knew nothing of other affairs. Re-
curing to the proposed issue of bonds Mr.
Wilson said Congress should have given
Secretary Carlisle authority to issue a low
rate short-time bond; failing to receive
that authority, he assumed the secretary
had done the best he could under existing
conditions. 1.-The sale Of bonds." he contin-
ued was necessary, and the secretary has
done the right thing. There is. l suppose
no serious contention that he has not the
by the report made to the House. at the
last Congress by Judge Culberson, 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"
Mr.. BOurke Cochran.
Bourke Cochran, another member of the
committee on ways and means, cordially
approved the proposed sale of bonds. 1T
was the only thing to do. A constantly in
creasing deficit meant the speedy insolven-
cy Of the treasury, and that would be fol-
lowed by universal bankruptcy. An empty
treasury would cause a total suspension of
credit, and there would be no business
| transacted. l make no comment upon the
legal aspects Of the case, although in an
article which / wrote last March on the
financial situation 1 stated that the sale
| of bonds was the most practical manner Of
relief open to the Treasury Department
Mr.. Amos j. Cummings.
Representative Amos j. Cummings of
New York was inclined to question the
authority of the Secretary to sell bonds
under the conditions of the call. 1.-The re-
| sumption act" said MIR. Cummings, does
say he may sell bonds bearing interest at a
4