The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-26
PRINCESS FLOUR
Best Made. Ask your Grocer
CARLISLE EXPLAINS
The Secretary Before the House
Judiciary Committee.
He Says a Prospective Deficit of $780,
100000 Impelled Him to Offer Gov
ernment Bonds on Sale.

WASHINGTON, Jan. 25.-For the first
time in this Congress every member of the
judiciary committee of the House attended
it's meeting to-day, the magnet being Secre-
tary Carlisle's statement OF his position on
the bond issue. The resolution of Repre-
sentative Bailey, of Texas, declaring ii to be
the sense of the House that the Secretary
has authority to apply the proceeds of
bonds to any purpose but redemption was
before the committee.
Mr.. Carlisle spoke in an informal way for
hour and d half and was assisted by
several members of the committee 1t was
held by the Secretary that the law con-
ferred on him the authority to issue bonds,
although he stated frankly that until re-
Gently he had not entertained that opinion
on the question. Great pressure has been
brought to bear upon him, he said, for the
bond issue, and although Ahe regretted the
necessity for it. as the step did not seem
to meet the unanimous approval of the par
~, yet il was plain TO him that the neceS-
sity was imperative at this time. A deficit
OF 5000 ,0C0 would exist at the end OF the
fiscal year he estimated under existing con-
ditions or a result of proposed tariff leg
islation unless Congress gave relief to the
treasury, which he hoped it would do.
Representative Bailey asked Mr.. Carlisle
whether he thought that under the law on
which he based the right to issue bonds he
was empowered TO devote the proceeds to
the expenses of the government or to re-
deem notes issued under the Sherman act
Mr.. Bailey explained that he did not doubt
the right TO sell bonds for resumption but
did deny that the proceeds could be applied
to other ends.
The answer of Mr.. Carlisle was compre-
md in fhn lfFiY tive
planned that most of the appropriations
made by Congress stipulated that any
proprfated'' should be used for carrying
out the purposes of the act. Under this
authority the Secretary said that he could
expend for current expenses all the money
in the treasury down to the last dollar,
whether not it was the proceeds of
bonds. provided only that 1t was not other
wise appropriated He had the power also,
he said, TO sell more bonds as he the
necessity, governed by mis- own discretion,
so long the state of the treasury made
il necessary to borrow money.
The leading question from the Repub-
lican side was put by Mr.. Ray, of New
sire TO put this question, which you can
answer or not as YOU think best The
resolution declares that the proceeds OF
the bonds proposed to be sold can only be
used by the Secretary OF the Treasury for
purposes declared In the act of 1879, to-
wit, the redemption of United states notes.
mittee thinks that to be the law, do you
think 1t wise, advisable or expedient for
this committee. for the House OF Repre-
sentatives, to so formally vote or declare ?
Would not such declaration embarrass the
Treasury Department and intensity the
financial strain now the country
The reply was: II do not want to tell
this committee what TO do. but 7 can saw
that il would probably erlbarrass the
Treasury Department, although / hope Ii
will not become necessary to use any of
the proceeds OF bonds sold for the pay
nient of the current expenses of the gov
ernment."
Mr.. Ray was the author of the minority
report signed by all the Republican mem
bers of the committee of the Fifty-second
Congress, which sustained the right of the
Secretary To issue bonds, the Democrats
being a that time opposed. Mr. RAY holds
TO his former proposition, but denies that
the proceeds of a bond sale can be used
for current expenses The other Republic
ans of the committee are thought TO be
with him. From the tenor OF the discus
sion IT was judged that Messrs Bailey
6oatner and Dearmond are in favor OF
the Bailey resolution. The committee. will
meet tomorrow to consider the resolution
and perhaps will reach a vote upon whpther
or not II shall be favorably reported 10
the House.