Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-26
The Result Of the Adoption Of the
Bailey Resolution.
PARTY SENTIMENT AGAINST BONDS.
Not Influenced by the Arguments
of Mr.. Carlisle.
THE REPUBLICAN POSITION

The House committee on the judiciary TO-
day took action calculated to still further
embarrass Secretary Carlisle in his efforts
to disentangle the Treasury Department
from it's present embarrassment. BY
vote of nine to four they reported the
Bailey resolution without amendment, de-
claring that it was the sense of the House
that the Secretary of the Treasury could
rot use money derived from the sale of
bonds for any other purpose than that of
the redemption of greenbacks. This action
on the part of the committee was probably
FASTENED by the sentiment developed IN the
democratic caucus last night. The Ques-
tion Of bond issue was not directly before
the caucus, but in discussing the income
tax 1t was said that it was a question of
income tax or bonds. and the sentiment
against the. issue of bonds as expressed on
every hand. was so generally adverse that
there was no room for doubt as to the an
tagonfsm Of the party to Mr.. Carlisle's 9
policy.
Text of the Resolution.
The full text of the resolution is az fol-
lows:
Resolved. That it is the sense of the
House of Representatives that the Secre-
tary Of the Treasury has no authority un-
der existing law to issue and sell the bonds
OF the United States except such as is con-
ferred upon him by the act approved jan
uary H. 1875, entitled an act Ito provide
for the resumption 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.
When Mr.. Bailey called up his resolution
he stated briefly the grounds upon which
ne based his contention. Some general
discussion followed. which developed the
fact that the opponents Of the resolution
did not deny that the resolution stated the
law. but doubted the expediency of acting
upon the matter after the Secretary had
issued his call. 1t was moved by Mr. lay
ton OF Ohio that the resolution be laid on
the table subject to call. In other words
while his motion did not provide that the
resolution be laid aside indefinitely, the
purpose was to prevent consideration at
the present time. Mr.. Layton's motion was
defeated by a vote of nine to four. The
next motion was made by Mr.. Bailey on
the adoption of the resolution and this was
carried by the same majority.
Not Influenced by Mr. Carlisle's Argu-
The action Of the committee plainly IN
dicates that the majority were not in
fiuenced by the arguments made by Secre-
| tary Carlisle yesterday when he appeared
before them 1t is Mr.. Baileys purpose
to call UP the resolution in the House at
the earliest moment after the tariff bill
| shall have been disposed of.
He believes that il will pass that body by
the same relative majority which it Sc
cured in the committee this morning. He
believes too. that favorable action upon
the committees resolution by the House
will result in the Secretary's applying the
proceeds of the sale of the bonds as re-
quired by law and not to meet the current
x.xr,,o nfr ho cnN ~ a
the Secretary would do for funds to meet
the present emergency Mr.. Bailey replied:
''Coin the seigniorage in the treasury. That
will meet our present necessities"
OF the six republicans present. five,
Messrs. Stone. Ray. Childs. Updegraff ard
Broderick, voted to report the resolution.
Mr.. Powers of Vermont voted in the mega
tive.
Mr.. w. A. Stone of Pennsylvania gave to
reporter today the following statement
embodying the reasons Of the Ave repubii-
can members of the committee for voting
in the affirmative: 1.-The republican party
has always maintained. since the acts of
1878 and 1892 that there should be kept, at
all times, by sale of bonds, IL necessary, a
reserve fund of slOO,OO0,OOO sacred to the
redemption of United States notes.
"The proposition of Secretary Carlisle is
practically to wipe out ard destroy the re-
serve fund by treating IL a balance in
the treasury, out Of which the appropria-
tions of Congress may be paid. This policy
is viewed with alarm. If Ii is carried out
it will have far more pernicious effect on
the business and credit of the country than
any temporary embarrassment that may
arise by the failure of Congress to provide
sufficient revenue to defray the current ex-
penses Of the government. Mr.. Carlisle is
largely responsible for the Wilson bill now
before the House. We believe this bill to be
the principal cause for the present def
cheney in the revenue. He cannot expect
us to support policy, which purposely re-
duces the revenue below the necessary
amount to pay the current expenses of the
government and then proposes to supply the
deficiency by selling United States bonds" !"