New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-20
A RUSH FOR THE NEW BONDS
MANY OFFERS RECEIVED BY SECRETARY
CARLISLE

CHICAGO AND OTHER WESTERN CITIES BE-
GKNING TO BE HEARD FROM ACTION
| POSTPONED on REPRESENTATIVE
HAuEY's RESOLUTION
w. saington. Jan 19-Thc number Of offers to
| Inv Bonds received by Secretary Carlisle to-day
was surprisingly large. Hitherto these offers
| had come from the East, but az the Western
| mails come in Chicago and other Western cities
| are heard from Many kilograms were received
! aro, t,nging that formal offers by mail to buy
bones ere on the way. Most Of the offers come
~ co i7se from banks, but many come also from
! indi ,duals. A pensioner in Ohio writes that he
has formulated ST. 900 and desires a safe invest
me-, 1t is stated that the bonds will be ready
for sue about February
n Baileys resolution relating to the issue Of
Dor q by the Secretary of the Treasury dis
Gu, ID by the House Committee on the judiciary
10. ~ for half an hour or more. but no con-
CIV ion was 4. The resolution reads
resolved. That II is the Of the House
of representatives that the Secretary Of the
tt isury has authority under existing law to
Isl G and sell the bonds of the United States.
cei such is conferred upon him by the act
a. royed January H. 1870, entitled, An act TO
p VI le for the resumption Of specie payments
All The money derived from the sale Of bonds
fsuel under that act cannot be lawfully applied
to aly purpose except those specified therein
49, Bailey explained to the committee the
ga ms which had induced him to introduce the
rs ution He had seen it stated in the public
D. . he said. that II was the intention OF the
s., -etary Of the Treasury to sell bonds to make
e / the deficit i'm the reserve OF gold held for
r. .mption purposes. lie admitted that under
{ terms Of the Resumption act Of 1915 the
Secretary had power to sell bonds for a specific
purpose and his resolution VS. intended TO dis
cover whether or not the proceeds Of the bonds
were f. be- used for. other purposes than that
named in the act In view Of the general in
formation upon the subject Of Treasury finances,
Mr. Bailey said. be believed there WAS no
doubt in the mind # any member Of the COM
mittee that the gold to b. received for the bonds
would be treated exactly as all other money in
the Treasury was treated AMI paid out on de-
mand - meet current liabilities The gold
serve had been thus treated in the past 1t
was within the knowledge Of the members Of the
committee that this. was the fact for last sum
mer the salaries of members had been paid in
gold And that at a time. too. when there
was the greatest danger to the credit Of the
Government from the Giminution Of the gold
holdings Of the Treasury.
To the objection or criticism that the resolu-
ton imputed purpose or intention 10 the
Secretary Of the Treasury to violate the
law. which ought not t. be- made Mr.. Bailey
said the publication In the newspapers OF Thurs
day fully justified him in making the declara-
lions Contained I'm the resolution. That publ
cation told the country that III" Secretary had
invited proposals for the purchase Of S3O.0Oo0 600
IL bonds. Sold even at par. this amount Of
gold, together with the scNrnty-odd millions on
hand. would increas" the gold In the Treasury
{" over SlOp.0nO.oO0. which more than had
ever been considered Necessary for redemption
purposes.
Nj Bailey devoted some time to consideration
~ fhc amendment - tn" Resumption act which
Sc rotary Carlisle had asked the Senate Finance
Committee - ofl"r. Tho amendment authorizes
the Secretary 90 the Treasury. In addition 10 the
purposes st forth in the Resumption act. for
which b" may soil bonds t. sell them for the
purpose 81 maintaining the parity of all forms OF
money. either coined OF issued Under that
amendment, Mr. Bailey said. the Secretary Of
the Treasury might sell gold bonds - redeem
silver certificates and even silver dollars.
There did not appear in the course Of the dis !
ciIssion. in which most OF the members present |
took part any serious contention that the Score
iaIy had no right to issue bonds. on the other |
hand. That WIS expressly conceded by Judge !
oates "nd others. Bur there was contention |
that under the law the Secretary had the right /
- sell bonds only to repair deficit In tho gold
reserve. and that proceeds - bond sales could /
not be- used for the general expenses OF the Gov
eminent. ~ expression ~ any kind was made /
during the meeting from which the probable /
attitude II The committee toward the resolution /
could Doe ascerfoiued.
The cDmmitt"" Adjourned until Wednesday /
nest. when SECRETARY Carlisle could appear and !
civ" his views on the subject In IFS legal aspects
circular letter giving detailed information |
how o. max" bids fOr IA" new lend issue will |
Doe ISSUED from The Treasury next Monday. In /
me moan TIM" Offers are opened and properly /
tapulatcl FOR future Use. The circular will state /
how. in case ID" offers exceed d. amount 10 be !
sold. the bonds Will b. apportioncd; how the |
Qu' stion II offers at IN" same figure the date /
~ offer being different. will h" determined and |
numerous details az Ike character.