The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-29
BONDS WILL BE GOOD
Secretary Carlisle Makes a State
ment to Backward Bidders.
Intending Investors Need Not Be Fright
ened by Representative Bailey's
No Authority Resolution.

NEW YORK, JAN 2S.-John Griffin Car
Isle, Secretary Of the Treasury, is at the
Flfth-avenue Hotel in this city. He made
public tonight the following statement:
ut has been enormously published in
some newspapers that the committee on the
judiciary of the House of Representatives
had agreed TO and reported resolution
denying the authority of the Secretary of
the Treasury to issue and sell bonds
proposed in his recent circular, and these
publications have evidently made an unfa~
Vorable impression on the minds of some
who contemplated making bids for these
to this subject that has been before the
committee is as follows:
Resolved. That 1T is the sense OF the
House of Representatives that the Secre-
tary of the Treasury has no authority under
existing law to issue and sell bonds Of the
United States except such as is conferred
upon him by the act approved Jan IA 1876
entitled IAN act to provide for the resump
ton of specie payments" and that the mon
ey derived from the sale of bonds issued un-
der that act cannot be lawfully applied to
any purpose except those specified therein
1T will be seen that this resolution as
sumed that the authority to issue bonds
was conferred upon the Secretary of the
Treasury by the act of Jan. IA, 1870 and
that such authority still exists, but it as
serts that the proceeds of the bonds cannot
be lawfully used except for the purpose of
resumption. The official stenographic re-
port of the proceedings in the committee
when the Secretary OF the Treasury APP
peared before it last Thursday shows that
his authority TO issue bonds was not queS-
toned by any members, the only question
being whether he could use the proceeds
for any other purpose than the redemption
of United States notes Mr.. Bailey, the
author of the resolution, distinctly ad-
mitted the existence of the authority. Ad-
dressing the Secretary, Mr.. Bailey said
The resolution does not impeach your
right to issue bonds; 1t expressly recog-
nizes 1t, but questions your right to apply
the proceeds to any purpose except those
specified in the act
''The judiciary committee of the House
examined and reported upon this same ques-
tion during the Fifty-second Congress, and
il then conceded that the authority existed
under the act of 1875 The question as to
the authority of the Secretary of the Treas
ury to use the money in any particular
manner, or for any particular purpose, is
wholly distinct from the question as to his
authority TO issue and sell bonds No mat
ter what he may do with the money, the
validity of the bonds will not be affected
and there is, therefore, no reason why any
one should hesitate to invest in these secur-
tiles on the ground that the proceeds might
possibly be used for other than redemption
purposes"
Mr.. Carlisle would say nothing further on
the subject. He stated that his only pur-
pose In issuing this statement was to rec
tify errors of recently published reports re-
garding the issuance of bonds. Mr.. Carlisle
will leave this city this evening