The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-02-11
Why the Secretary Is Opposed to
Issuing Greenbacks.
HIS NEW BONDS WILL BE VALID,
Even if He Dumps the Gold Into the
Middle of the Atlantic
Ocean.

policy on financial questions are set forth.
To questions by members of the commit
tee Carlisle said that the effect of coming
the segniorage and issuing certificates
against that would be, as the certificates
called for dollars. if they came in for re-
demption and there were no dollars behind
them, that he would be compelled to redeem
them in gold or whatever else he might
have. 1t would take about two years to
coin silver for that purpose. There is not
the silver on hand for the purpose. be-
cause certificates are Issued against silver
already coined up to within five or six
millions of the total. 1t would not do to
issue certificates on uncoined seigniorage,
as they would be greatly discredited in
the public mind. They would call for
silver dollars. but there would be no silver
dollars TO redeem them and Ii might be-
come necessary TO redeem them in gold.
If all other coinage ceased and the mints
were pushed it might be possible to coin
S4S,000,000 of silver per year.
On the bond question Carlisle said his
purpose in selling bonds was TO redeem
United States notes and treasury notes
and replenish the reserve; but he might
be confronted with a very serious question
as to what be would do If Congress failed
TO make provision TO supply the deficiency.
Suppose, for instance" he said, "as
usual, Congress makes an appropriation
for pensions TO be paid out Of any money
in the treasury not otherwise appropri-
ated, and suppose the Secretary finds there
is o money in the treasury not otherwise
appropriated except money realized from
the sale of bonds. he will be co nfronted
with the question whether he will stop
the payment of pensions; whether he will
stop the payments on public buildings,
on rivers and barbors, whether he will
withhold the salaries or use the money
in the treasury not otherwise appro-
priated. l believe it is my duty to
pay pensions and all other public
obligations, and unless Congress stops
me / shall do so. While l stay here
shall endeavor to maintain the credit of
the Government by paying its obligations.
l would not use the proceeds of bonds il
it we're possible to avoid it. but would not
let the obligations of the Government go to
protest and fail 10 pay the appropriations
of Congress for legitimate purposes and
for carrying on the expenses of the Gov
ernment as long as there is a dollar in the
treasury"
Carlisle also stated his reluctance in Is
suing bonds. As to the most desirable
kind of bonds to be issued he said be
favored a sbort-time bond with low ra te
OF interest. in small denominations. which
he believed .he people would take who
have money in she savings banks. They
could be sold or used in the payment Of
expend itures and redeemed out of future
reve nues.
In reply to question by Quay as to how
the bon DIS we're to be paid for Carlisle said
the proposal called for gold coin.
This is the first iime," said Mr.. Bailey,
there has been any discrimination"
NO." Carlisle replied, Secretary Sher-
man sold bonds for gold coin"
81 mean." said Mr.. Bailey, shat this is
the first time since the act of 1878 vas
passed. When Sherman sold those bonds
gold was the only legal tender"
"What the Secretary says" answered
Mr.. Carlisle. sis substantially this: Con-
gress has invested me with authority to
issue bonds and sell them for coin. [ will
not issue bonds and sell them unless the
purchaser will give gold coin for them.
because gold coin is what is needed to-
maintain resumption and the parity of the
two metals"
"Ars not the bonds made payable In
coin ?' Mr.. Oates asked.
mot gold coin," replied Mr.. Carlisle.
"but in coin. When Congress compelled
the Secretary of the Treasury by law to
buy S156, 600. 600 worth of silver it specified
in definite terms the buying of silver, and
he did il"
Carlisle's views were then secured on
the plan of another issue of greenbacks.
He was asked if it would not be feasible
and practicable to authorize the Secretary
of the Treasury to issue notes sufficient TO
relieve the wants and necessi ties of the
treasury.
why, of course" he answered, "Con-
gress could do that. ana the Secretary of
the Treasury would use them. II you ask
me as financial question whether think
it wise in Congress to authorize an issue of
$500, 600. 000 in greenba | should saw no.
because believe in the first place there is
an ample supply of coin in the country for
the business being transacted. and great
deal more than is being used"
In concluding the hearing Carlisle ex.
pressed himself vigorously as to the valid
ity of the present bond issue. He was
asked by Stone IL the bonds would be hurt
by legal questions.
NO." Carlisle said. "because if the Sec-
retary of the Treasury should issue those
bonds and take the gold and dump it in
the middle ef the Atlantic Ocean it would
not vitiate the bonds"