The Providence news. (Providence [R.I.]) 1891-1906, 1894-02-10
Mr.. CARuSE'S VIEWS
On the Coinage Of Seignior-
age Of the Silver Bullion
WOULD MAKE SILVER CERTIFICATES
Which He Would Redeem with Gold
from the Reserve If Necessary--His
Testimony Before the Judiciary
Committee.--Wants Bond Issue.

WARRINGTON, Feb. 10.-Secretary Car
isles exact views and policy, including
the matter of silver seigniorage, bonds
and business in general, are set forth
and amplified In the stenographic report
OF Mr.. Carlisle's hearing before the judic-
1ary committee tome time since. The
Secretary revised the proofs before they
reached the committee today.
At the secret hearing Representative
Oats said ;"l want to know "hat you think
OF the proposition that Is now pending
before the house of the coinage OF s55 ,000,-
600 of the seigniorage from silver and issu-
ing OF certificates upon that"
Secretary Carlisle" Well, the effect of
that would be that the Secretary of the
Treasury would issue silver certificates
calling for dollars, suppose IL there were
no dollars behind them, and IL they came
in for redemption, as they might, the Sec
retary would be- compelled to use gold or
whatever else he had to redeem them"
Mr.. Boatner-"Could you not coin the
silver and use that?"
Secretary Carlisle-"Yes, in about two
years; it would take about that time.'
Mr.. w. A. Stone penn. )-"Haye not
you got enough silver to redeem it?"
Secretary Carlisle--"No sir, certificates
are outstanding against what we have,
except about s5,00O,000 or 5000, ,000."
Mr.. Stone-"What would be the objec-
tion to issuing certificates on account OF
the seigniorage?"
Secretary Carlisle-sT was going to state
that il we should issue certificates with
nothing behind them but bullion, think
they would be greatly discredited In the
public mind"
Mr.. Stone-nAnd in order to keep up
the credit you would have to redeem them
in gold?"
Secretary CarlisIe-s'They would have TO
he rpdeefned In, aor,. fbiuU -
In answer TO a question as to how fast
coinage of the seiguiorage could be pro-
ceeded with Mr.. Carlisle said:
'tf all other coinage was suspended at
the mints estimate that we could coin
about 100000 silver dollars per month,
or si8, 900 coo year"
The bond question was treated elabor-
ately by Mr.. Carlisle. His purpose es to
using the proceeds OF the sale on bonds
Yves sharply set forth in the following
colloquy.
Mr. Stone SnT understand your purpose
is simply TO sell bonds 20 redeem United
States notes and Treasury notes, and the
surplus 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 confronted hereafter with a
very serious question as to what
he viii do In the event of Congress failing
OF rtiuelD8 W iltkt pToNElou " sup
ply the deficiency. Suppose, for
instance, Congress passed law, which
it does every session, making
appropriations for some particular pur-
pose-the payment OF pensions for Illus
trat:on--and makes it the duty of the
Secretary OF the Treasury to pay them
out of any money in the treasury
the language OF all OF your appropria-
ton laws--and the Secretary OF the In
terror makes a requisition upon the
treasury department for s5,000,oO0
to pay pensions. The Secretary of the
Treasury finds no money in the treasury,
not othervi'e appropriated, except the
money that has been realized from
the sale Of bonds. He will be
whether he will stop the payment
OF pensions, whether he will
stop the payment upon public
buildings, whether he will stop payment
for work upon rivers and harbors, whether
he will withhold salaries, or use the
money in the treasury not otherwise APP
Mr.. Boatner: "would you consider it
improper to give your opinion as to the
duty OF the Secretary of the Treasury ,"
Secretary Carlisle-'I will give it very
plainly. believe it is my duty to pay
pensions ana all other public
stops me, / shall do so while
stay there,s1 shall endeavor to maintain
the credit OF the government by paying
its obligations.
think a short time bond should be au-
thorizrd bearing low rate OF interest to
be issued In small denominations
which think woulu be taken
largely by the people who have money in
savings banks and the Secretary could
sell them or use the proceeds in the pay
ment OF expenditures and redeem
them out of the future revenues. That
was my recommendation on the subject
simply because l saw 1t was impossible
for Congress to provide by taxation any
revenue which could be collected in time
for this fiscal year."