The herald., 1894-02-11
iARL|SLE'S FINANCIAL VIEWS,
The Secretary of the Treasury
= ON the SeigniOrage.
The Bond Question Also Discussed
at Length.
Report OF the sscretary's Statements to
the House Committee on Judiciary.
why the Bonds are Paya-
BILE in Gold.
By the Associated Press.

By the Associated Press.
WASHINGTON, Feb. 10.-The house
committee ON judiciary made public
btenographic report of the secret hear
!. Ing before it by Secretary Carlisle some
Time ago, in which the latter's views
and policy on financial questions are set
i, forth. In answer to questions by mem
bers of the committee, Carlisle said that
\ the effect OF the coinage Of the seignlor-
age and the issuing of certificates against
it would be such that, as the certih-
Gates called for dollars, if they came in
for redemption, and there were
no dollars behind them, 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 ia not the silver on hand for the
purpose, because certificates were is
sued against silver already coined up to
within five or six months OF The total.
1t would not do to issue certificates on
the uncoined seigniorage, as they would
be greatly discredited in the public
mind. They would call for silver dol
y lars, but there would be no silver dollars
to redeem them, and it might become
necessary to redeem in gold. II all
other coinage were closed, and the
mints pushed, it might be possible to
s~coin $48, 10000 silver per year.
On the bond question Carlisle said his
purpose in selling the bonds was to re-
deem United States notes and treasury
notes, and to replenish the reserve; but
he might be confronted with very seri-
GUS question as to what he would do
fafla fn pnako prOUIpinn Tn
supply the deficiency. Suppose, for in
stance, as usual. congress makes an APP
preparation for pensions to be paid out
any money in the treasury not otherwise
appropriated; and suppose the secretary
finds there ia no money in the treasury
not otherwise appropriated except the
money realized from the sale OF bonds.
He will be confronted with the question
whether he will stop payments on public
buildings, on river and harbors, whether
he will withhold salaries or use the
money in the treasury not otherwise ap-
propriated.
81 believe it is my duty to pay pensions
and all other public obligations, and
unless congress stops me l shall do SO.
While l stay here | shall endeavor to
maintain the credit of the government
by paying it's obligations. | would not
use tlb pTOCbtub VI bu0 II ~ WOIo
possible to avoid it, but l would not Let
the obligations of the goysrnn ent go TO
protest and fail to pay the Rpproprla-
tions of congress Tor legitimate purposes
and for carrying on the expenses of the
government 80 long as there is dollar
in the treasury"
Carlisle also stated his reluctance in
issuing bonds was as to the most desira-
BILE kind of bonds to be issued. He said
he favored short time bond with a low
rate OF interest, in small denominations,
WHICH he believed - the peaple y .sgis
Expenditures, and redeemed out Of
future revenues.
In reply to question by Bailey as to
how the bonds were to be paid for, Car
Isle said the proposal calls for gold
coin.
Bailey-This is the first time there
has been any discrimination.
Carlisle-No. Secretary Sherman cold
bonds for gold.
Bailey-I mean this is the frat since
the act of 1878 passed. When Sherman
sold these bonds, gold was the only
legal tender.
Carlisle-What the secretary SAWS ia
substantially this: Congress has in
vested me with authority to issue bonds
and sell them for coin. | will not issue
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.
Oates-The bonds are made PAYABLE
in coin.
Carlisle-Not gold coin, but in coin.
When congress- compelled the secretary
I oil the treasury by law to buy $l56, 00O,-
900 OF silver, it specified in definite
terms the buying OF silver; and he did it,
Carlisle's views were then secured on
the plan OF another issue Of greenbacks.
he was then asked if it would not be
feasible and practicable to authorize the
secretary OF the treasury to issue treas
ury notes sufficient to relieve the wants
and necessities OF the treasury.
Carlisle-Why, of course; congress
could do that, and the secretary OF the
treasury would use them. II YOU ask
me as financial question whether
think 1T wise in congress to authorize
the issue OF $500, 600, 600 in greenb backs,
should say no; because believe, in the
hrst place, there is an ample sum of
money in the country for the business
being transacted, and great deal more
than ia being used.
expressed himself vigorously as to the
validity of the present bond issue. He
vas asked by Stone II the bonds would
hurt by legal questions.
Carlisle-No; because if the secretary
the treasury should Issue those bonds
nd take gold and dump it in the mid.
Do of the Atlantic ocean, it would not
Sfiate the bonds.