Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1894-02-15
CARLISLE ON FINANCE
''5 secretary Testfes Regarding Coinage
OF Silver and a Bond ISSUE.


WASHINGTON, D. c., Feb. 1o.-secre-
e oafllsle sexact views and policy on
-. questions, including silver
ooiShlorage, bonds and finance in. gen
elai' are set forth and amplifed in an
Important document which reached the
mouse committee on judiciary TO-DAY.
a lne testimony of the secret hearings
shows that concerning the coinage of
SILVER selgniorage. It is as follows:
Representative Oates i want to ask
y s;o II there IS any objection to the PROPOSE
.icl ABOUT coming the seigniorage and is
SUING certificates against that?
secretary Carlisle-Well, the effect of that
MouIo pc that the secretary of the treasury
Ho.io issue silver certificates calling for dol
no dollars behind them, and if they came
an lof redemption, as they might, the secre-
lary OF the treasury would be compelled. I
suppose to use gold or whatever else he
nadto redeem them
MI. Boatner-Could you not coin the sill
yer and use that?
secretary Carlisle-Yes, in about two
years; 1t would take about that time
w. A. Stone, of Pennsylvania-Haye YOU
not got enough silver to redeem it?
secretary Carlisle-No, sir; certificates are
Outstanding against what we have, except
NJ.
Mr.. Somewhat would be the objection
TO issuing certificates on account of the
selgniorage?
Secretary Carlisle-I was going to state
that II we should issue certificates with
nothing behind them but bullion, | think
they would be greatly discredited in the
public mind.
MT Stone-And in order to keep I'D the
credit you would have to redeem them in
gold?
Secretary Carlisle-They would have to be
redeemed in something.
Mr.. Stone-If you redeemed it in silver it
would be discredited, and you would have
to redeem it in 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 selgniorage could be pushed,
MIR. Carlisle said: "If all other coinage were
suspended at the minis, l estimate that we
could coin about 200, 600 silver dollars per
month, or S48 100000 year.
The bond question was treated very elab-
oratcly by Mr.. Carlisle. His purpose as to
using the proceeds Of the sale of bonds is
sharply set forth in the following colloouy:
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 very serious oues-
ton as to what he will do in the event Con-
gress fails or refuses to make provision to
supply the deficiency. Suppose, for in
stance, Congress passes law, which it does
every session. making appropriations for
some particular purpose-the payment of
pensions for lllustratiOn-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 requi-
sition upon the treasury department for
money to pay pensions. The secretary of
the treasury finds no money in the treasury
not otherwise appropriated except
the money that has been realized from tn G
sale Of bonds He will be confronted with
the question whether he will stop the pay
ment OF pensions, whether he will stop pay
will stop payment for work upon rivers and
harbors, whether he will withhold salaries,
or use the money in 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 | shall do SO.
While l stay there | shall enGeavor to
maintain the credit Of the government by
paving its obligations
Mr. Boatncr-Out of the proceeds Of the
bonds which you propose to sell?
Secretary Carlisle would not use the
proceeds OF 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 dollar in the treasury.
Mr.. Carlisle further stated his reluctance
in resorting to bonds. AS to the kind of a
bond which Mr.. Carlisle thinks Congress
should authorize there was the following:
Mr.. Boatner-The plan that you suggest
to remedy this trouble would be for the
secretary to issue bonds for a specific pur-
pose; is that the point?
Secretary Carlisle think a short time
bonds should be authorized bearing low
rate of interest, to be Used III 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 il payment of ex-
penditures and redeem chem out of the fur
Their revenues. That was my recommends
ton on the subiect-simply because | saw
it was impossible for Congress to provide
bv taxation any revenue which could be
Al.