St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-15
CARLISLE is CAUTIOUS.
THE SECRETARY HAS HIS EYE ON
THE RESERVE.
WILL BEGIN ISSUING BONDS
Before the Reserve Drops to $50, =
100000 - Senator Voorhees,
Says the Secretary Will Act
Promptly and Effectively If an
Emergency Should Arise-The
Power or the Senate.

WASHINGTON. Jan. 14.-Some decisive
action to replenish the gold reserve in
the treasury must be- taken within the
next few weeks. If congress does not
take kindly to the suggestions offered
by Secretary Carlisle in his annual re-
port, and provide at once some means of
relief, the o2ly course left the officials
of the treasury debt will be for the sec
rotary to exercise the authority granted
him by the law of 1875 and issue bonds
for the purpose OF maintaining the gold
reserve. The position which confronts
the administration is one which they
have decided to handle with prompt
ness. All the available money now i'll
the treasury department consists of the
so-called gold reserve" which has now
been invaded S26, 5000, 900, and by the
first of the month the treasury depart
ment believes that the total amount will
have been reduced to s6S,000,000. Such
situation, it is thought, would again
start movement of gold toward Eu-
rope, which would still further reduce
the amount of gold held by the United
States. Secretary Carlisle has twice
appeared before the committee on
finance, and his presentation Of the
case to the members of that committee
has been
CLEAR AND EXPLICIT
in the statement of the situation. When
he next appears before the committee,
which may be tomorrow, it is probable
that he will emphasize his argument by
the presentation of a carefully prepared
statement on the condition IN which he
finds International finances, as well as
the methods proposed by him to afford
relief. Mr.. Carlisle prefers that congress
should deal with this m liter, but, if the
legislature fails within three or four
weeks to show any indications that it
intends to aid the secretary of the treas
ury, it is known that he will be forced
to avail himself of the authority granted
him by the act of rs and issue bonds
necessary to replenish the gold reserve.
1t is because Mr.. Carlisle desires that
congress should first act that lie has
thus far made no preparation for an Is
suancc of bonds, and all statements to
the effect that orders have been given
luC Jul VI anu
plates, etc.. are pure faDrications. Alb
solutely no action has been taken and
no plans decided upon. This much can
he officially stated. The attitude of tn
New York banks, as expressed in re-
cent publications in regard to the fur
nishing of gold for export, should such
| necessity arise, has possibly had some
effect in strengthe ming a feeling that
the government
SHOULD ISSUE BONDS
to protect the gold reserve. 1t is denied,
| however, that any agreement ever ex-
| listed by which the bonds were to fur
| nish gold. A prominent Democratic
senator said today that Secretary Car
| Isle would not allow the gold reserve
to fall below $50. 600. 600, and, should the
| reserve be reduced to nearly that point
| before congress acted. Mr.. Carlisle
would Immediately declare an issue of
bonds. When this statement was shown
| to Senator Voorhees,, the chairman of
| the finance committee, he declined to
either verify or deny it, only saying:
''The secretary Of the treasury has the
authority and the disposition to protect
the credit Of the government, and Ihave
no doubt that he will act promptly and
effectively if the emergency should
arise" Senator Voorhees, does not deny
the report that he is preparing bill to
| meet the emergency, but this statement
| would seem to indicate that he does not
expect to be called upon to formulate
| measure. With reference to the opinion
that bill for a bond issue cannot
originate in the senate, it can be stated
| that the lawyers of the senate are gen.
orally of the opinion that it can origin
ate there as well as in the house. Sena-
tor Gray says the house would probably
make row over such action on the part
of the senate, but that, in his opinion.
the issuance of bonds is not the raising
of revenue as provided for in the con-
StitutiOn.