The herald., 1894-11-03
CARLISLE SETS HIMSELF RIGHT.
Senator Frye's Statements Con-
tradicted.
The Secretary Explains His Views
Oh Finance.
His Attitude Toward tho sherman Bill
and Action Conoerning the
Resumption of Notes
and Bonds.
By the Associated Press.

By the Associated Press.
WASHINGTON. Nov. 2.-Secretary Car
Isle today wrote the following important
letter, bearing on the political aud
financial situation:
"Mr. Phineas Phices, Boston, Mass.
'.DRAR IR:-Your telegram inquirjng
whether or not certain statements made
by Senator Frye in recent speeches are
correct, was received this morning, and
| embrace the very earliest opportunity
to reply. AS l understand the state
ments made by that senator, in an in.
tervieW published about year ago, and
very recently in speeches delivered at
Wilmington, Del, and at Melrose and
Malden, Mass, they are substanti ally
as follows.
"First--That the amendment offered
by Senator Sherman to the sundry civil
appropriation bill in February, 1898.
contained provision that ell our money
must be kept at o parity with gold, or "a
stated in the Wilmington speech, for the
redemption OF all money in gold.
"Second-ThatI approved this amend
ment when it was III consideration in
the senate committee on finance, but
afterwards caused its defeat in the house
OF representatives., by sending q tele-
gram and writing letter in opposition
to it.
"Third-A fortnight after that l gave
an interview in which l said we would
be obliged to redeem our money in sil-
yer, and that this alleged declaration
brought on panic and caused millions
and millions OF gold to be exported.
There ia scarcely the semblance OF
truth in any OF these statements, except
the one that | personally appeared be-
fore the senate committee on finance
when the Sherman bill was under con-
sideration. and recommended its adop'
ton. and if Senator Frye had added that
| continued to approve that and still ap-
prove it, he would have told the whole
truth upon the subject.
''If the Sherman amendment had
been incorporated into the appropria-
ton bill it would have been later on
than the act OF July. 1890, and serious
question would have arisen whether it
did not so limit the use of the proceeds
OF the bonds authorized by it, as to pro-
hibit the redemption in gold OF any OBJ
legations except that OF gold United
States notes.
'But, however this ght have been,
the amendment left the original bond
provision of the resumption act in full
force, end merely conferred additional
authority to iesue shorter bonds, bearing
a lower rate OF interest. | Was heartily
in favor OF it. and 80 informed the COM
mittee on finance and all others who
consulted me upon the subject"
Referring to the threat TO defeat the
sundry civil appropriation bill in the
house if the Sherman amendment was
insisted upon, the secretary says:
SIT was evident to ths friends OF tine
amendment in the house, that the pass-
age of the bill could and would be de-
feated, and an extra session of congress
rendered necessary unless they aban-
doned the amendment. l was absent
from the city at the time, but q number
OF kilograms were sent to me by the sup.
porters OF the amendment, stating the
situation and insisting that under the
circumstances it would not only be use
less to press it further, but that such q
course would probably prevent the pass
age of other important measures. Be-
fore responding to any OF these
kilograms, | carefully examined
the provisions of the resumption
act and other statutes relating to fnan.
cial matters, and came to the conclusion
that complete authority already existed
to issue and cell bonds and to use the
proceeds for redemption purposes, and
thereupon | sent telegram to mema
ber of the committee on appropriations
stating in substance that | did not con.
slider the amendment OF sufficient i'm.
portance to justify a contest which
might result in the defeat OF that bill
and other necessary legislation. There
was nothing in my telegram indicating
disapproval of the amendment, and
never wrote letter. as asserted by Mr..
Frye, to any body on the subject.
"In regard to the third statement OF
Senator Frye, | de'ire to say most en-
phatically that | never gave out euch an
interview at any time or place."
In conclusion the secretary says:
"These two STATEMENTS were intended
to mean, and do in fact mean, precisely
the same thing as evidence of my de.
termination to redeem all United States
notee and United States treasury notes
of 1890 in gold. | have only to refer to
facts which are well known that. on the
| came morning the statement was pub
| lished, gold was being promptly paid to
all who demanded it, although the re.
serve had fallen below $l00, 600. 900. and
that this practice has been continued
without interruption ever since.
ION the TIN day OF March, 1898, when
! | became secretary of the treasury, the
gold reserve was 500, 9SS, 900, but it was
afterwards increased to $l0S. 1000, 900 by
exchanges of notes for gold. notwith.
standing the fact that large amounts
were being weekly withdrawn for ex-
port. The records of the department
show that during the five months next
preceding the date of nv qualification
as secretary, the Withdrawals OF gold
from the treasury for export amounted
to $50, ,046 900, and that during the first
iva months after | took charge OF the
office the Withdrawals for export
amounted to $36 $40, 900.
In view of these facts, it is difficult tC
find any justification for Senator Frye'f
statement that anything said or done by
me officially or otherwise caused the ex
portation OF gold from this country.
Truly yours. }. u. CARLISLE"