The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-17
Secretary Carlisle's Bond BIZ.

Secretary CARLISLE is entirely right In
seeking to get from Congress power to pro-
vide for the immediate necessities OF the
Treasury by the issue Of bonds. The excess
OF the nations expenditures over its in
come during the current fiscal year is al
ready more than S43, 900 600 and by June 30
1t will probably be over S7s.OOO.OOO. The
balance in the Treasury. including STA, OO0,-
900 In gold held for the redemption OF the
greenbacks, is now but So. 900, 900, SO that
unless more money is obtained from some
source. the Government will soon have,
practically. not dollar To go on with.
In this emergency the Secretary has sub
mitted to the Senate Committee on Finance
bill which Is curiously crooked and round
about in its provisions. Instead OF author
izing him. plainly and directly. to sell bonds
aud apply the proceeds to paying the Gov
ernment's debts. 1t merely amends the Re-
sumption act OF 1875 So as to prescribe a
lower rate OF interest for the bonds author
lied by that act. and then goes on to say:
And the proceeds of such bonds shall be cid and
used maintain he parity OF forms OF money coined
sued by the United states but the secretary OF the
Treasury hereby authorized to from time
such part OF such proceeds may be necessary sup
ply deficiencies the public during nseAl
year 1894"
Evidently. the Secretary desires by the
passage Of this bill to kill two birds with
one stone. He wants to establish by law
the Illegal and unauthorized gold redemp-
tion fund created by Secretary SHERMAN in
1878 as well as to obtain money-for his
present necessities. IL would be more
manly and honest to make both purposes
plain by separating them. either by de-
voting whole section to each. or by EN-
bOdying each In different bill.
In his accompanying letter to the com
mittee to whom Secretary CARLISLE has
submitted his bill, he says that "authOHty
10 issue and sell bonds for the purpose Of
maintaining specie payments was expressly
conferred upon the Secretary OF the Treas
ury by the act Of Jan. ID, 1875" Begging
the Secrctary's pardon. no such author
ity can be found in the act he mentions.
the Resumption act OF 1878. the title OF
which is ait act To provide for the Tesump-
tion Of specie payments That act direct
Ell the redemption In coin of the old legal
tender notes issued during the wsr. and
nothing more. IL says not word about
maintaining specie payments. because
lift had been faithfully executed, all the legal
NNhNNA9 OUTSTANDING Jan l. 1901 Nbllu nave
been long ago cancelled and destroyed
and coin would now be the only currency
paid out by the Government, In 1878.
however, Congress passed an act sub
stantially forbidding the execution of the
Resumption act. by forbidding the can
collation. OF the legal-tender notes; but
Secretary SHERMAN nevertheless went on
and created on his own responsibility
gold redemption fund which he persistent
~ declares was established by law. and
which Secretary CARLISLE, toward the
close Of his letter. threatens to replenish by
the sale of thlrty-year four per cent. bonds.
In case Congress does not pass the bill he
asks for We do not say that such a fund
ought not 20 be maintained. but no law
creating il has ever been passed and none
exists. Secretary CARLIsLE's proposed bill