Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-02-10
FINANCIAL VIEWS
Secretary Carlisle's Statements Be-
fore a House Committee.
AGAINST COMING THE SEIGNIORAGE
How He Will Use the Money
Derived From Bonds.
REINFORCEMENTS NEEDED

Secretary Carlisles exact views and pol
Icy on finacial questions, including silver
seigniorage bonds and finance in general.
are set forth and amplified in an important
document which reached the House COM
| mittee on judiciary today. 1t embraced the
stenographic report of Mr.. Carlisle's hear
ing before the committee some time since.
At the time Of the hearing care was taken
that nothing but the most meager and gen.
eral details of Mr.. Carlisle's utterances
should be made public. The testimony was
Transcribed and submitted to the Secretary
| for such correction and revision as he de-
sired to make. He also went over the
| proofs with care, so that the document sub
mitted today elaborates the Secretary's
| views after each statement has been care
| fully weighed by him.
Concerning the coinage of silver seignior-
| age Representative Oates asked:
Il want to know what you think of the
proposition that is now pending before the
House on a report from a committee of
the coinage of the $55.OOO,OOO of seigniorage
from silver and the issuing of certificates
upon that?'
Secretary Carlisle: "Well, 1 prefer not
to give an opinion about that unless the
gentlemen desire, because l believe that
comes before another committee"
1t was explained that the coinage COM
mittee had reported the Bland seigniorage
bill and later MIR. Oates asked:
Il want to ask you If there Is any OBJ
| lection to the proposition pending about
coming the seigniorage and issuing certifi-
Gates against that?"
No Dollar Back of the Certificates.
Secretary Carlisle: well, the effect of
| that would be that the Secretary of the
Treasury would issue silver certificates call
| ing for dollars, l suppose. when there were
no dollars behind them, and If they came
| in for redemption, as they might, the Sec
retary of the Treasury would be compelled,
l suppose, to use gold or whatever else he
had to redeem them"
Mr.. Boatner: Gould not you coin the
silver and use that?"
Secretary Carlisle: "Yes, in about two
years; 1t would take about that time"
MIR. w. A. Stone of Pennsylvania: Have
not you got enough silver to redeem it?'
Secretary Carlisle mo, sir; certificates
are outstanding against what we have, ex-
cept about $5,OO0.OO0 or $6,OOO,000."
Mr.. Stone: What would be the objection
to issuing certificates on account of the
seigniorage?'
Secretary Carlisle: II was going to state
| that IL we should issue certificates with
nothing behind them but bullion, / think
they would be greatly discredited in the
Mr.. Stone: 'And in order to keep up the
credit you would have to redeem them in
gold?"
Secretary Carlisle: They would have to
be redeemed in something"
Mr. Stone-"If you redeemed it in silver
1t would be discredited and you would have
to redeem 1t in gold"
Secretary Carlisle-"They would call for
silver dollars and there are no silver dol
lars to redeem them"
In answer to a question to how fast
| the coinage of the seigniorage could be push
ed Mr.. Carlisle said: IF all other coinage
SuSDended "A min I
that We could coin about 4oOO,O0O silver
dollars per month or s4s.OOO.OOO a year"
The bond question was treated very
elaborately by Mr. Carlisle. His purpose as
to using the proceeds of the sale of bonds
is sharply set forth in the following col
loquy.
Mr.. Stone-'T understand that your pur-
pose is simply to sell bonds to redeem
United States notes and treasury notes.
and the surplus to replenish the reserve
fundf"
How He VIII Use the Bonds.
Secretary Carlisle-"That is my purpose,
but want to say to you gentlemen that
the Secretary of the Treasury may be con-
fronted hereafter with a very serious ques-
ton, as to what he will do in the event
Congress fails or refuses to make provision
to supply the deficiency"
Suppose, for instance, Congress passes
law, which 1t does every session making
appropriations for some particular purpose
the payment Of PENSIONS for an illustra-
tion) and makes 1t the duty of the Secre-
! tary Of the Treasury to pay them out of
any money in the treasury not otherwise
appropriated (Which is the language of all
OF your appropriation laws) and the Secre-
tary OF the Interior makes a requisition
upon the Treasury Department for S. OOO 900
to pay pensions. The Secretary of the
Treasury finds no money in the treasury
OJn6rWtSe annrOnTiafa6
money that has been realized from the sale
of bonds. He will be confronted with the
question at once whether he will stop the
payment of pensions, whether he will stop
the payments upon public buildings whether
he will stop payment for work upon rivers
and harbors. whether he will withhold sal
aries, or use the money in the treasury not
otherwise appropriated
Mr. Boatner-Would you consider it i'm
proper to give your opinion to the duty
of the Secretary of the Treasury?
Secretary Carlisle-I will give II very
plainly. believe 1t is my duty to pay pen
sions and all other public obligations, and.
unless Congress stops me, l shall do so:
while stay there 1 shall endeavor to main
ing its obligations.
Mr.. Boatner-Out of the proceeds of the
bonds which you now propose to sell?
secretary Carlisle would not use the
proceeds of bonds If ii was possible TO
avoid it, but 1 would not let the obliga tions
OF the government go to protest and fail
TO pay the appropriations made by Con-
gress for legitimate purposes and for carry
ing on the expenses of the government as
long as there is a dollar in the treasury.
The Treasury Must BE Reinforced.
Mr.. Carlisle further stated his reluctance
in resorting to bonds in the following col
loquy:
Mr.. Boatner-In the present condition of
the treasury, and with the legislation that
is in sight, do you regard it as a necessity
that the treasury should be reinforced by
the sale of bonds?
Secretary Carlisle-I do, unquestionably,
or else 1 would never have proposed to
issue bonds. did 1t very reluctantly. I
hesitated long time, sometim IS | reared
i was waiting too long, but the situation
at last became so critical that I telt it was
my duty, and especially in view of what 1
regarded as a very uncertain prospect of
securing any immediate relief by congress
sional legislation.
AS to the kind of a bond which Mr. Car
Isle thinks Congress should authorize
there was the following:
Mr.. Boatner-The plan that you suggest
to remedy this trouble would be for the
Secretary to issue bonds for a specific pur-
pose; is that the point?
Secretary Carlisle-I think a short-time
bond should be authorized, bearing a low
rate of interest, to be issued in small de-
nominations, which. think, would be taken
L. l IL.