The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-26
CARLISLE on rnn BoSD rssoE
Hs Addresses the House Judteiary Cor-sit-
Tee on the Subject.


WASHINGTON. Jan. 25.-secretary Carlisle adj
dressed the House judiciary Committee to-
day on the subject OF his proposed bond Issue.
The committee has under onsideration a
resolution offered by Mr.. Bailey tDem., Tex.
declaring that the Secretary has no authority
under the present law TO issue bonds. The
sub committee having charge Of the rosolu-
ton reported IL favorably to the full commit
tee. The full committee postponed final action
on II until Secretary Carlisle could be heard.
Secretary Carlisle occupied an hour and n
half explaining his position regarding the pro-
posed bond issue ana answering questions re-
garding II. Ho spoke 81 tho deficiency. aud
said that 10 it continued to grow at it's present
rate it would be In the neighborhood OF $780,
600. 900 at tho end OF tho present year. lie
disliked. he said. to have to issue bonds. and
had given the matter much thought hefore
doing ST. At first lie doubted whether lie had
authority to do 80. but after much study ron
cluded that he had. Great pressure was broug ht
to bear TO have him issue the bonds.
In reply to questions by Mr.. Bailey OF Texas
Mr.. Carlisle Is reported to have said that under
the Resumption net he had authority to
issue bonds ard 10 use the proceeds for de.
fraviug the expenses o. the Government and
for the redemption OF notes issued under the
sherman law.
Mir. Bailey held that the proceeds Of bonds
tho purpose stipulated hy that aci that is. re.
demption. This was the point on which tho
Secretary ami Mr.. Bniley differed and Mr..
BAILEY claimed that he developed the fact that
the Secretary asserts the right to nse the pro-
cecds OF the proposed bond sale for GcfraylnE
the general expenses OF tho Government
Mr.. Ray tlep, y. 81 said; MIR. Secretary
desire To put this quest ION, which you ran
answer or not MS you think hest. The tesolu-
ton declares that the proceeds Of the bonds
proposed to he sold can only he used Iy the
Secretary Of the Treasury for the purrose de-
clarch IN tho act Of 1SNh. the redemption OF
United states notes, The question is this:
law do you think IT wise. Advisable or cXna-
dent for the committee or the House Of ep-
resentatives to 80 formally vote or declare |?
Would not such n declaration erhArrnss the
Treasury Department and intensity the Imam
cial strain now upon this country Z"
SECRETARY Carlisle replied: " 10 not want to
tel this ommtttee what to do, hut ! csn say
ury Department. although l hore 1t will not
become necessary to use any Of the proceeds
Of the sale OF bonds Tor the payment OF the
current expenses ~ the Government"
The Secretary further aaid that ms a matter
OF fart there WAS lot now and never had been
any actual segregation OF one hundred mil
lions OF gold or any other sum from the other
funds in the Treasury. There was no Law on
the subject requiring the Secretary to main
tain the gold reserve and II was mere fiction,
out Of the act for the reorganization Of ma
tional banks. and was based upon an assump-
ton. an understanding merely.
Secretary Carlisle also aRih that whenever
the other resources Of tho Treasury were ex-
hausted, and Congress had directed him to ex-
pend money for certain ohiects. he should un-
should always. while he remained at the head
OF the department. use all the power nd dis
erection vested In him to prevent the Govern
ment from going 20 protest.
Great int in tho matter was shown by
tho committee. and for the first time this SEES
sion every member was present