Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1894-01-29
IMPORTERS STILL OBJECT.

Reasons Why Secretary Carlisle Went
to New York-A Hitch Between the
Importers aud the Collector of the
Port.
WASHINGTON, Jan. 2S.-Two reasons
impelled Secretary Carlisle to 60 to New
York last night One was to straighten
out the hitch that has occurred between
the collectors of customs at New York and
the importers regarding the acceptance of
checks in payment of custom dues aud the
other was to ascertain the bids for the new
bond issue. A court decision made the
collector responsible for checks whether
the bank cashsd them or not. This re-
sponsibility Collector Kilbreth, after losing
several hundred dollars, declined to as
sume. The importers then, as q matter of
retaliation, ceased to pay their customs
dues in gold checks, but deposited therefor
silver certificates.
While before the order was issued to re-
fuse checks gold payments averaged for
the first 25 days 20 per cent, they ran
down the day the order was put into effect
to / of per cent. The loss of gold in
customs aggregated more than 81, 0O0, 900
In the present drain on gold for ordinary
expenses this state of affairs was serious.
A new system of transfer orders was sug-
gested for payment Of customs and was
thought to be agreeable to importers, banks
and treasury officials. Some OF the i'm
porters still object.
The action Of the committee on the ju.
dietary in reporting the Bailey resolution
favorably has had the effect of deterring
any large bids so far for the new bonds.
The action Of the Knights of Labor In
seeking an injunction against Secretary
Carlisle has had difquieting effect.
Treasury officials have doubt of the
power of the secretary to use thu gold OBJ
tanned for these bonds for any legitimate
government expense, and Secretary Car
isle will, while IN New York, assure all
prospective bidders that they need have no
fears on any score about bidding, and that
they will be amply protected.
NEW YORK, Jsu. 28.-Secretsry Carlisle
to night made the following statement:
1t has been erroneously published in
some papers that the committee on the ju-
dietary had agreed to and reported a reso
luton denying the authority of the secre.
tary of the treasury to Issue and cell bonds
as proposed In his recent circular, and
these publicstious have evidently made an
unfavorsble impression upon the minds OF
some who contemplated making bids fol
these securities. The only relation to this
subject that has been before the COMMITTEES
Ia as follows:
Resolved, That 1t Is the sense of the
house that the secretary of the treasury
has no authority under existing law to
issue aud sell the bonds of the q nited
States except such as is conferred upon
him by the act approved January Is, 1875
entitled An Act to:Provids for the Re
sumption of Specie Payments and thai
the money derived from the sale of bond,
issued under the act cannot be lawfully
applied to any purposes except those spsci
Aed therein"
1t will be seen that the resolution az
sumes that the authority to issue bond
was conferred by act of January 4, 1875
and that such authority still exists, but 4
asserts that the proceeds Of the bonds can
not be lawfully used except for the pur
graphic report of the proceedings In tn
| COMMITTEES when the secretary of the treas
| ury appeared before 1t on Thursday show
l that his authority to issue bonds WAS no
| questioned, the only question bsfni
| whether he could use the proceeds for an,
| United States notes. Addressing the eec
rotary, Mr.. Bailey said:
"The resolution does not impeaeh you
right to issue bonds. 1t expressly recog
nizss It, but questions your right to appl.
the proceeds to any purposes except thos
specified in the sct."
The judiciary committee of the hous
examined and reported upon the sam
question during the Fifty-second congress
and 1t then conceded that the authority ez
listed under the act of 1875 The qusstio
a. to the authority of the secretary of tn
treasury to use the money in any partioula
manner or for any particular purpose
wholly distinct from the question as t
bis authority to Issue and sell the bonds
No matter what he may do with the none
the validity of the bonds will not be al
fected, and there 10 therefore no reason VIII
anyone should hesitate to invest in thes
securities on the ground that the proceed
might possibly be used for other than fec
eral purposes"