New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-17
A BOND ISSUE PROBABLE.
CARLISLE MA ego IT ALONE"
DEMOCRATIC THEORY CONFRONTED BY
AN IMPERATIVE CONDITION..


on HIS OWN RESPONSIBILITY BY
ADOPTING SECRETARY FOSTERS
VIEWS AND ACTING UNDER
THE LAW OF 1878.
[BY TELEGRAPH TO TIE TRIBuxEr
Washington, Jan. 16.-The failure Of the Sem
ate Committee on Finance to respond, at its
meeting to-day to Secretary Carlsle's urgent
appeal for authority to issue new short-term 3
per cent bonds to meet threatening deficit
seems TO settle conclusivey all chance Of the
passage of any such legislation during the pres
ent Treasury crisis. Mr.. Carlisle It is not too
much to say has known all along that he could
not obtain consent from the Democratic ma
1ority In Congress for new bond issue. and his
reported scruples about violating the accepted
Democratic construction Of the Resumption act
by issuing bonds under It to pay current Gov
ernment obligations have been simply feeble
bluff to distract attention from his real pur-
pose To follow exactly in the course proposed
some time ago by Secretary Foster.
The bill sent by Mr.. Carlisle to Senator Noor-
hees Is nothing but copy of an amendment
offered by Mr.. sherman IN the last Congress TO
one or the regular appropriation bills. This
amendment met with almost solid Democratic
opposition In the Senate and had to be aban-
doned. II hal not then the slightest chance Of
passage r a Democratic House nor has it now.
II the Treasury deficit Is 10 be met by an issue
OF bonds II Is apparent that under present con-
ditions In Congress Mr.. Carlisle will have to
save the public credit on his own responsibility.
and by an expedient heretofore condemned al
most universally by his political associates in
both legislative branches.
Mr.. voorhees, Oem.. Ind. chairman Of the
Senate Finance Committee this afternoon made
tho following statement TO United Press re-
porter:
The embarrassed condition Of the Treasury and
thcnecesslty for prompt action fors fully
realized There is not the slightest ground how
ever. for apprehension that the public credit will
suffer or be endangered. for the reason that
ample authority already exists by law for the
Secretary ~ the Treasury To strengthen his
coin reserve to any extent required and to meet
every d' mand that can be- legtimatcly made
The power Of III" Secretary for the issue Of
bonds needs nothing beyond what Is given by
the act II January Il. 1875. The only desirable
object 10 be attained by now legislation at this
time on that subject * To make a shorter time
bond with lower rate Of interest and yet the
Secretary feels assured that h. can regotate
bonds issued under the act # 1919. running only
ten years on practically per cent basis l.
seems. therefore. that It will BE- wiser. safer and
better FOR the financial and business interests
~ the country u rely upon an existing law
with which 10 meet he pr sent emergency
rather than to encounter the delays and un-
certainties always incident 70 protractcd discus
sion In the two houses Of Congress. This view
of the subject Is rendered more imperative by
the fact that the condition Of the Treasury ad-
mits of but llttl' II any. delay. and Of no
certainty AT all in the final action to be taken
IL wyuli he trhng with a very grave Grfair
TO pretend that new legisla ton concerning the
Issue of bonds can be accomplished at this time
and In ihe midst II present elements and parties
in public He. without elaborate. extensive and
practically indefinite debate II Is also obvious -
every uur that the consideration AMI discussion
4 the tariff now going on In Congress will
render any financial Legislation At this time far
moro difficult and complicated than IL might be
under other and different circumstances
1T ls proper - say IN this connection that the
Senate Financ, Committee for several weeks past
has had this subject under almost constant
consideration and that the bill submitted by
Mr. Carlisle has been examined and dis
cussel with the greatest care The inter-
est of the committee viii hy no means
b. abatei from thiy time forward. The
fact that mu. remains 10 bee done IS fully recog-
nlz,l Whatever deficiency In the revenues may
exist during tho current fiscal year will be-
promptly provided for by appropriate and efii-
Client legislation at the earliest practicable mo-
mcnt"
In accordance with the action Of the COM
mttec. Mr. Voorhees, later In the afternoon laid
Mr. Carslc's letter and the draft Of the bill
he had drawn before the Senate He asked
that The bill be- printed in bill form. but this
was objected t. by Mr. Teller on The ground
that it came from neither Senator nor COM
inttee. and was hot introduced as a bill. lnas-
much as ~ on" volunteered to Introduce the
Secrctary's bin. II was ordered 70 BE- printed sim
ply As a document.
Fifteen separate offers. agcregatnG $40 0O00.- =
0co 10 take bonds should Secretary Carlisle issue
them. have been received at tho Treasury De-
partment. one offer Ia take block of $4,000
600 was received from Il Ncw-York firm this
morning Another offer to take Sl1J vas re-
| ceivcd from a mechanic.
General commeadatlon was given IN Wall street
yesterday to the letter OF Secretary Carlisle 10
Senator Voorhees, asking for authority to issue 3
per cent bonds ana nt!matng that II Congress al
not act soon he would use the authority under the
Act Of ls7j to issue Government bonds at higher
rate Of Interest The banking community read
The letter with additional satisfaction, because 1t
was the first Indication Of definite financial po.Icy
| yet given by the Administration. To that extent
alone II would have been hailed as a welcome docu-
| men;. The whole financial interests Of NcT-York.
| which are now financing the recuperaton of the
country. have been hounderlng in doubt and
al1,nhy Iy with regard 10 the course that the
the National finances to some semblancc OF sOlVcn-
Gy, Out OF the foegy situation mas mas grown moth
ms s Iui uncertainty ana utta' nhd me o1S' IN,
dica1ns Of the revival IN business nave been looked
~ & asfamGg on account Gi tne un'er' d'SuS' OF
| 1t would be absurd 10 attempt to quote bank
TS arsI ss in any way h %n 'f6Ga 6rnar
| ment since last March. The record Of the spring
| the redemption Of Treasury coin notes VIII not
| easily be forgotten hut Wall street IS now anx-
| ous to hold up Mr. Carsles hands in any attempt
| he may make to preserve the credit OF me Na-
tion. a wholesome optimism peryndes the banking
| community and the universal opinion Is that the
Government can at any time enter the money mar
| ket and borrow every cent needed t. conduct It's
affairs deccntly Except for this confidence IN" low
state Of the Treasury reserves would long before
| this have disturbed the money markets. iiut bank
| era are confesslng in private parlors that thty
fear further depletion in the Treasury cash hold
! inRs. The gold balance has fallen below NZOcDWo
There is no, enough gold coin In the possession ot
Of gold certlG,at.s alone. Having been denuded
| Of nearly sl of it's currency, the Treasury loans
| only its goLl holdings To- meet such cash pay
ments as are imperatyey demanded from m day ' to to
day. To consider the Treasury situation IN itS en-
tirety Is something which practical bankers VIII not
do unless they are safe from the in'erViewers :
pencil.
The financial situation. howeyer Is aSknoWSiedsed
10 be so serious In us poSsipliitleS ti.. -
almost savagery in the private declarations OF
bankers that en- issue of Government bohus must
be made The very rumors OF bond n issue v,,s last
| week exerted n most beneficial effect upon Eaiues
The Improvement would probably have run further
Yesterday except adverse reports iTo g co
mitces which have the initation oid ~ Inv "n, sn,na