The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1894-02-03
CARLISLE
On the Bonds, the Seisniorage and
q the Deficit
Certificates Against Scigniorage Impossls
BILE, ms Bullion Could Not Bc Coined
The Issuance of Bonds the Only
Remedy, Says che Secretary.

WASHINGTON, Jan. 90. --Mr. Carlisle's
appearance before the house judiciary
committee Thursday resulted in some
interesting statements andadmissions
by the secretary.
The Bailey resolution declaring that
the secretary of the treasury had ne
authority to use any portion of the pro-
ceeds from the sale of bonds for other
purposes than the redemption Of United
States notes was the pending proposi-
ton. Secretary Carlisle made no at.
tempt at speech-making, nor did hc
confine himself TO any particular line OF
argument longer than necessary to an-
swer questions.
The talk between the secretary and
the members of the committee, which
developed Mr.. Carlisle's defense or rea-
sons for selling bonds, drifted into the
silver question on an inquiry as to the
secretary's views on seigniorage.
There has been an earnest effort on the
part of many democratic congressman
to procure the issue of certificates
against the seigniorage which 1t has
been calculated will amonnt to S55, ,000,-
900 when the bullion now on hand is
coined. Throughout the country the
secretary's bond policy has been crit
icized, and the argument was used that
he had no right to resort to n bond sale
while he had at his command this fifty
odd millions of seigniorage.
Mr.. Carlisle's reply can be taken as
the position of the administration on
this subject and settles at once and for
.ol
often.
"If issue certificates against seign-
forage sc-called," said the secretary.
81 must have dollars in silver com with
which to redeem those certificates. I
can not get these dollars unless coin
bullion on hand, and / can not coin
bullion on hand in less than three
years"
Such a clear statement as this of the
requirements for an issue of certificates
against an imaginary profit on silver
seemed to bring conviction to members
OF the judiciary committee, as it re-
vealed to them the absurdity of the
contention of those who have been de.
nanding the creation of notes which
would have nothing back of them, and
which could not be redeemed with doll
lars which would have no other exist
ence than the declaration printed on
the face of the bills.
In regard to the bond sale, Mr.. Car.
Isle stated that he had but recently
adopted the idea that the secretary of
the treasury had this authority, but he
had waited until the last possible mo-
ment for congress to take some action
for the relief of the treasury. The only
mistake he could now see that he had
made was in waiting SO long. '
He said tho necessity for sale of
bonds was imperative, as the deficiency
was increasing at an alarming rate,
and that $50, 600. 900, if not more, would
be the amount of the shortage at the
end of the present fiscal year unless
congress took immediate action Ques-
toned as to his opinion of the right Of
the secretary to continue the sale Of
bonds, Mr.. Carlisle frankly answered
that there was no limit under existing
law upon his powers in this direction.
The most significant part of Mr.. Car
isles testimony was that in relation
to his right to use money obtained
from the sale of bonds for current ex-
penses of the government He said to
the committee that if congress should
make an appropriation for any pur-
pose ''out of moneys not otherwise
appropriated" and if the only avail
able asset at his command was money
received from the sale of government
securities, he would be compelled to
use that money and he would feel him
self perfectly justified in doing so.
The secretary gave the committee
figures to show that what was known
as the reserve" for which s95, 900, 900
of bonds had been sold, had all been
exhausted by the redemption of United
States notes