The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-02-15
CARLISLE ON FINANCES.
TEsTI MoNY IN SECRET HEARING BY
THE COMMITTEE OF THE HOUSE.
Believes it His Duly to Maintain the Credit
of the Government and Will Use the
Proceeds Of Bond Sales For
That Purpose.

financial questions, including silver
seignorage bonds and finance in gem
eral, are set forth and amplified in an
important document which reached
the house Committee of judiciary to-
day. 1t is the stenographic report of
Carlisle's secret hearing before the
committee some time since. The tes =
timony of this secret hearing shows
that concerning coinage of silver
seigaorage: Representative Gate
asked: II want to ask you if there is
any objection to the proposition about
seignorage aud issuing certificates
against that
Secretary Carlisie-Well, the effect
of that would be that the secretary of
the treasury would issue silver certifi-
Gates calling for dollars l suppose
when there were no dollars behind
them and if they came in for 'redemp.
ton, as they might, the secretary of
the treasury would be compelled, |
suppose, to use gold or whatever else
he had to redeem them
| Mr.. Boatner-Coulh you not coin
the silver aud use that?
Mr.. Carlisle-Yes, in about two
years. 1t would take about that time.
Mr.. w. A. Stone (Pa )-Have you
not got enough silver to redeem it?
Mr Carlisle-No, sir; certificates are
outstanding agai st what we have
except about 5000 or $4,000.
Mr. Somewhat would be the OBJ
lection to issuing certificates on ac-
| count of Seiguorage?
Mr.. Carlisle-I was going to state
| that if we should issue certificates with
nothing behind them but bullion,
think they would be greatly discredit-
ed in the public miud.
Mr.. SGone-And in order to keep up
the credit you would have to redeem
them in gold
Mr.. Carlisle-They would have to be
redeemed in some' hing.
Mr.. Stone-If you redeemed it in
silver it would be discredited and you
would have to redeem it in gold?
Mr.. Carlisle-They would call for
silver dollars and there are no silver
dollars to redeem them.
In answer to the question as to how
fast the coinage OF seignorage could
be pushed Mr.. Carlisle said: IF all
other coinage was suspended at the
miuts, | estimate that we could coin
about 4,O00,000 silver dollars per
month, or S48. 600. 900 a year."
The bond question was treated very
eIaborately by Mr.. Carlisle. His pur-
pose as to using proceeds of sale of
bonds is sharply set forth in the fol
lowing colloqny.
Mr.. Stone-I understand your pur'
| Il, IN Cnll hnndC n rahpplD
| United States notes and treasury
notes. and the surplus is to replenlsh
the reserve fund
Mr. Carlisle-That is my purpose
but | want to say to you gentlemen
that the secretary of the treasury may
be confronted hereafter with very
serious question as to what be will dc
in event congress fails or refuses to
make provision to supply the deticien'
cy. Suppose for instance congress
passes a law, which it does every ses'
sion, making appropriations for some
particular purpose. the payment o
pensions for illustration, and makes il
the duty of the secretary of the treas
ury to pay them out of any money iI
the treasury not otherwise appropri
ated-which is the language OF all ap-
propriatiOu lawS-aud the secretary o
the interior makes requisition upoI
the treasury department for money tc
1 pay pensions, the secretary OF the
treasury finds no money in the
treasury not otherwise appropriated
except money that has been realized
from the sale Of bonds. He will be-
confronted by a question which will
arise as to the payment ef pensions
whether be will stop payment on pub
lie buildings. whether he will stop pay
ments Of work upon rivers and har
bors, whether he will withhold salaries
or use the money in the treasury moi
otherwise Appropriated.
Mr.. Boatner-Would yon consider i
improper to give your opinion as tt
the duty OF the secretary of the treas
url?
Mr.. Carlisle-I will give it yer!
plainly. | believe it to be my duty tx
pay pensions and all other public oh
legations, and unless congress stops III,
| shall do so. While l stay there
shall endeavor to maintain the credi
of the government by paying its obi
cations.
Mr.. Boatner-Out of the proceeds o
the bonds which you now propose t.
sell?
Mr.. Carlisle-I would not use thu
Proceeds OF the bonds if it were posi-
BILE to avoid it, but l would not lie
the obligations of the government g
to protest and fail to pay the appro
priatious made by congress for lagiti
mate purposes and for carrying on tht
expenses of the government as long a
there is dollar in the treasury.
Mr. Carlisle further stated his reluc
tauce in resorting to bond sales As t,
the kind of bond which AR. Carlisl
thinks congress should authorize there
was the following:
Mr.. Boatner-The plan that yo,
suggest to remedy this trouble woul,
b. Tor The secretary to issue bonds 70
specific purposes; il that the point?
Mr.. Carlisle-''I thiJk a short tim
bond should be authorized bearing
low rate Of interest, to be issued il
small denominations, which, | tim
would be taken largely by the peOp
who have money in savings banks
aud the secretary of the treasury cOul'
sell them or use the proceeds in pay
ment of expenditures and redeem
them out of further revenues. Tha
is my recommendation on the subject
Il eatN Il u