The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1894-02-01
CARLISLE
On tho Bonds, the Seigniorage and
the Deficit.
Certificates Against seieniorage Imross'-
bic, Rs Huiion Could Net lie Coiurs!--
The Issuance OF Bonds the Only
Remedy, Says tie Secretary.

WASHINGTON, Jan. GO Mr. Carlisle's
appearance before the house judiciary
committee Thursday resulted ii some
interesting statements and admissions
by the secretary.
The Bailey resolution declaring that
the secretary of the treasury had no
authority to use any portion Of the Pro-
ceeds fro.u the sale OF bonds for other
purposes than the redemption Of United
States notes was the rencing PROPOSE
ton. Secretary Carlisle mAde no at
tcmnt at spccch-malS;ng, nor did he
confine himself to any particular line Of
argument longer than necessary to an
swer questions.
The talk between the secretary and
the menl cr> OF the committee. which
developed i:r. Carlis!cs defense ~ rea-
sons Cor selling bonds, drifted into the
silver question or an inquiry as TO t!:c
sccx 'tsry's views on scgnioragc.
There has been in earnest effort On tho
part Of many democratic congressman
to procure the issue OF certificates
against the sc;gnicrage which it has
been calculated viii alnonnt to So, 000,-
coo when the bullion row on hand is
co;ne.l Throughout the country the
secr"tary's bond policy his tecn crit
icized, and .hc argument vas used that
he had no right TO resort 20 4 lC:d sale
while lie had ut his command this fifty
odd millions of segnioragc.
Mr. Corl>ie's reply can tc taken as
tic rcsit;oa of TIC administration on
this subject and settles at oncc ard for
all the issue which has been raised so
often.
'.lf issue certificates against sc:gr-
forage so-callcd,' said tho secretary.
~ mast have dollars in silver com with
which to redeem those certificates.
can not get these dollars unless coin
bullion on hand. and l can not coin
bullion on humid in less than three
years.
Such a clear statement as this Of the
requirements for an issue OF certificates
against an imaginary profit ca silver
seemed 10 bring conviction to members
of the Judiciary committee, rs it re-
vealed TO them the nbsurdity Of the
contention of those who have beer de-
rlan,;ing the creation Of notes which
would have nothing back Of them, and
which could not be redeeEad with dol
lars which would have no other exist
ence than the declaration printed on
the face OF The bills
In regard to the bond sale Mr.. Car
Isle stated that he had hut recently
adopted tho idea that the secretary OF
the treasury had this authority. but he
had waited until the last possible mo-
lnent for congress to take some action
for the relief of the treasury. The only
mistake he could now see that he had
made was in waiting so long.
He said the necessity Tor sale of
bonds was imperative, as the deficiency
was increasing at an alarming rate,
and that $50, 900, 900, if rot more, would
be the amount Of the shortage at the
end of the present fiscal YER unless
congress took immediate action. Cues
toned rs to his opinion of the right OF
the secretary to continue the sale OF
bonds, Mr. Carlisle frankly answered
that there was no limit under existing
law upon his powers IN his direction.
The most significant part of Mr.. Car
isles testimony was that in relation
to his right to use money obtained
from the sale of bonds for current OK
penses of the government lie said TO
the committee that if congress should
make IN appropriation for any pur-
pose "out of moneys not otherwise
appropriated" and ii the only avail
able asset at his command was money
received from the sale Of government
securities he would he compelled to
use that money and he would feel him
self perfectly justified IN doing So
The secretary gave the committee
figures to show shat what was known
as the reserve" for which 800, O0o, 900
of bonds had been sold, had all beer
exhausted by the redemption Of United
States notes.