New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-26
HIS RIGHT TO ISSUE BONDS
SECRETARY CARLISLE BEFORE THE
HOUSE JUDICIARY COMMITTEE.
HE STATES HIS VIEWS AND ANSWERS SOME
POINTED QUESTIONS SENATOR ALIENS
SPEECH AGAINST TIE PLAN.

POINTED jESTlONs-SENATOR ALIENS
SPEECH AGAINST TIE PLAN.
WASHINGTON. Jan 2j.-Secretary Carlisle addressed
the House judiciary Committee to-day upon the
subject Of his proposed bond issue. The committee
has under consideration resolution offered by MI.
Bailey Dem, TeX) declaring that the secretary
has no authority under the present law TO issue
bonds The subcommittee having charge of the
resolution reported II favoraby to the full COM
mittee The full committee discussed the matter
but or motion OF Mr.. Goodnight Dem, KY post
poned final action on 1t until Secretary carlisle
could be heard.
Secretary Carlisle occupied an hour and half
in explaining his position regarding the proposed
bond issue and answering questions regarding 1t.
He spoke of the deficiency. and said that If 1t
continued TO grow at its present rate II WOULD De
IN the neghborhood Of SsO0O0OoO at the end OF the
present year. He dsliked he said TO have 10 issue
bonds and had given the matter much thought
heforc doing so At first he doubted his authority
10 do so. but after much study concluded that ne
had Great measure was brought to bear to have
him issue the bonds.
In reply to questions by Mr. Bailey MY Gar
Isle is reported 20 have said that under the He-
sumption act he had authority TO issue bonds anu
10 use the proceeds for defraying the expenses 81
Government and for the redemption OF notes issued
under the Sherman law. '
Mr. Bailey held that the proceeds Of funds issued
under this act could only be used for the purpose
stipulated by that act. that is. resumption Inns
was the point which the secretary ana MI
Bailey differed. Mr.. Bailey said that the secretary
asserts the right to the proceeds OF the pro-
nosed bond sale for defrayng the genera! ex-
penses OF the Government
Mr. Ray (Rep. y. " said MI secretary
desire to put this question. which you can answer
or not as you think best. The resolution declares
that the proceeds Of the bonds proposed TO De sod
can only be used by the Secretary OF the treasury
tha
demption of United States notes. The question is
this: Suppose this committee thinks that TO be the
law do you think 1t wise advisable or exponent
for the committee the House of Representatives
20 formally TO vote or declare? Would not such a
declaration embarrass the Treasury Department
and intensity the financial strain now upon 'h's
Secretary Carlisle replied: 81 do not want to tel
this committee what to DO but can say 5eaa
ment although hope 1t Will not become hece G ~ ,
of the proceeds OF the SAFE oI oous 1Oi
the payment Of the current expenses OF the Govern
msnt" .o. .,u,,o- so,a that &C q matter O.
fact there was not now and never had been any
actual segregation OF S10O.c0Ocl0 Of gold or any
other from the other funds Of the JGasu ny
Secretary to maintain the gold reserve, ana II was
eon PIN dsvG IL hsa
National banks. and was based upon an assumption
erey C % e
and Congress had directed him 10 expend mE rn
for certain objects he should sbd1s wh
he remained at the head of the Department use al
the power and discretion vested in him TO prevent
the Governments obligations from going TO protest
Great interest the matter was SHOWN by the
Committee and for the first time this session every
member. was present - , >.,,
Populjst delivered a lega! argument against the
authority of the Secretary of the Treasury TO issue
per cent bonds His argument was TO TIE eft fec.
that the Resumption Act Of 1870 under which Mr.
Carlisle claims authority for the issue and sale OF
bonds ceased &c operative soon as Its purpose
the redemption OF outstanding legal-tender notes,
was accomplished and tha r n mas no more ei