The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-02-11
CARLISLE AND The BONDS.
The SeCretary'S Views Before the Ju-
dietary Committee.

Bonds.
Washington. Feb. 10.-Some time ago
Secretary Carlisle appeared before the
House judiciary committee to give his
views upon the subject of the issue of new
bonds. At the time of the hearing care
was taken that nothing but the most
meager and general details of Secretary
Carlisles utterance should be made
public The notes of the hearing
were transcribed and submitted to
the secretary for such revision of his re-
marks as he might desire to make, and
today the report of the proceedings was
submitted to the House judiciary com
mittee in printed document. The Bailey
resolution was before the committee at
the time and the purpose of the com
mittee was to ascertain if the secretary
held that he had authority to use the pro
ceeds of the bond sale for other than re-
demption purposes, although the inquiry
was broadened to take in the seigniorage
question and the expediency Of bond
issues
TO MAINTAIN THE GOVERNMENTS CREDIT.
Touching the first proposition the sec
retary said: 81 believe it is my duty to pay
pensions and all other public obligations,
and, uni less congress stops me, shall do
so while stay there l shall endeavor to
maintain the credit of the government by
paying its obligations.
Mr.. Boatner-Out of the proceeds of
the bonds, which you now propose to
sell2
Secretary Carlsle-I would not use the
proceeds of the bonds if it were possible
to avoid it, but l would not let the obli
cations of the government go to protest
and fail to pay the appropriations made
by congress for legitimate purposes and
for carrying on the expenses of the gov
ernment as long as there is dollar in the
treasury.
MUST MEET THE BILLS.
Replying to a question of Mr. Stone
whether his purpose was to use the pro-
ceeds of this bona issue to redeem United
States notes and treasury notes, and to
replenish the reserve fund, the secretary
said: That is my purpose, but want to
say to you, gentlemen, that the Secretary
of the Treasury may be confronted here
after with very serious question, as to
what he will do in the event that congress
fails or refuses TO make provisions to sup
ply the deficiency. Suppose, for instance,
congress passes a law, which it does every
session, making appropriations for some
particular purpose, the payment of pen
sions, for an illustration, and makes it
the duty of the Secretary of the Treasury
to pay them out of any money in the
treasury not otherwise appropriated,
which is the language of all your appro-
prlatlOn laws and the Secretary of the
Interior makes requisition upon
the treasury department for 5,000,
600 to pay pensions. The Secre-
ttary of the Treasury finds no money
In the treasury not otherwise
appropriated, except the 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 pay
ments upon public buildings, whether he
viii stop payment for work upon rivers
and harbors, whether he will withhold
salaries, or use the money in the treas
ury not otherwise appropriated.
NECESSARY FOR THE ISSUE.
The secretary was questioned as to the
necessity for his proposed bond issue,
and stated that he felt the necessity was
absolute, Said he: II did it very re-
luctantly. l hesitated long time. Some
times l feared was waiting too long, but
the situation at last became so critical
that felt it was my duty, and especially
IN view OF what | regarded as very un-
certain prospect of securing any immedi-
ate relief by congressional legislation"
He emphasized this point by saying
mat 1t was thing he dislked as much
as any gentleman upon this committee
ior he did not want to see the public
debt OF the country increased in any way
Whatever, or for any purpose whatever"
lie favored the idea of popular loan
low interest small denomination bond,
running for short time, so that the peo-
PIE having money in savings banks might
invest. These bonds would be elastic, as
they might be issued to meet treasury
expenditures and redeemed when there
was a surplus Of revenues. Such an is
sue he thought might be necessitated
because congress could not by taxation
alone provide the necessary revenues for
lnls fiscal year.
THE DEMAND FOR GOLD.
Mr.. Bailey, of Texas, the author of the
resolution which was the subject of in
curry, challenged the secretary's author
lVy 10 demand gold for the bonds, and
asked II this was not the first time this
discrimination had been shown.
Inc secretary replied: No; Secretary
sherman sold bonds for gold coin"
Mr. Ba1ley-l mean this is the first time
SINCE the act of 1878 was passed. When
Mr.. Sherman sold those bonds gold was
Ihe only legal tender.
secretary Carlisle--What the Secretary
u u Ihe treasury says is substantially this
congress has vested me with authority
70 issue bonds and sell them for coin [
VIII not issue bonds and sell them unless
the purchaser will give gold coin for
them, because gold coin is what is needed
70 70 maintain resumption and the parity of
lhe two metals.
!, Mr.. Oates-The bonds are made paya-
bic in coin?
:, secretary Carlisle-Not gold coin, but
du m com. When congress authorized the
secretary Of the Treasury and compelled
Ailn LIln by law to buy Sl56. 100000 worth of
suYer, it specified in definite terms the
Ouylng OF silver, and he did it,
OBJECTED TO AN ISSUE OF GREENBAoKs.
:, Inc secretary rejected the plan of an
ISSUE OF greenbacks TO meet the present
emergencies and said while he would use
sueih II congress authorized the issue, he
oeIleVed 1t TO be unwise, because there
was more money in the country now than
was IN use, He had no doubt Of his au.
tthorlly TO issue the bonds, and declared
enat II the Secretary of the Treasury
euouIu issue these bonds and take the
eoid and dump it into the middle Of the
bonds. '4''N'0 'N0
Mr.. Oates endeavored to sound the sec
ttssary upon the proposition to issue GER
ssLcales against the seigniorage. as con
Gulplated by the pending Bland bill
~ t2ectetary Carlisle Well, the effect Of
H1uat would be that the Secretary Of the