The evening bulletin. [volume] (Maysville, Ky.) 1887-1905, 1894-01-16

urge promised legislative action on this
subject
With the permission of the committee
have prepared and presented for its consid-
Grafton bill which, If promptly passed,
would, in my opinion, meet all the re-
quirements of the situation, by providing
the necessary means for defraying the pub
lie expenses and replenishing the coin re-
serve to such an extent as to assure the
maintenance Of the parity Of all forms of
all United States currency.
While this proposed measure of relief
has not yet been disposed of or considered
by the committee, the great differences of
opinion which are known to exist in both
branches of congress concernia' the pro-
priety of granting additional or amended
authority to issue bonds in any form or
for any purpose, render it doubtful
whether new legislation upon the subject
can be secured in time to provide the
means which are imperatively demanded
IN order to preserve the credit and honor
Of the government.
Authority to issue and sell bonds, for the
purpose of maintaining specie payments,
was expressly conferred upon the secretary
of the treasury by the act Of Jan. H. 1875,
but it has not been exercised since 1879,
provided for, and the length of time such
bonds would have to run, have not been
satisfied that such an emergency existed as
would clearly justify their issue. But the
necessity for relief at this time is so urgent,
and the prospect of material improvement
in the financial condition of the govern
ment is so problematical that, unless au-
thority to issue and sell shorter bonds, or
nfh or oh ~ 20 IF
interest than that specified in the existing
law, is granted by congress at a very early
day, shall feel constrained by sense of
public duty to exercise the power already
conferred, to the extent, at least, of provid-
ing an adequate coin reserve If this &C
ton should be taken, congress ought,
nevertheless, to provide promptly for the
deficiency in the revenues during the cur
rent fiscal year, and l will from time to
time advise your committee of the con-
dition Of the treasury, in order that this
subject may receive due consideration.
have the honor to be yours very re-
spectfully, J. G.. CARLISLE, Secretary.
Section 3701, of the revised statutes,
provides that "all stocks, bonds, treasury
notes and other obligations of the United
States shall be exempt from taxation by
or under state or municipal or local au-
thority
On account of this general statute, it
was not proposed in the bill which the
secretary of the treasury laid before the
senate finance committee in the early
part of last week to make any provision
concerning the taxation of the bonds,
which he is asking congress to authorize
him to issue.
The house of representatives, by rule
adopted some time ago, has dedicated
all its time to the goth of the present
month to the consideration of the Wilson
tariff bill, and therefore it would have
been impossible for the secretary of the
treasury to procure any legislation in
that body before that time, and for this
reason Secretary Carlisle thought it nee
essary to make the application first to
which, he hopes, will act upon the meas
ure in time to provide the necessary
means for the government.
The bill, which is referred to in the
foregoing letter, is as follows:
An act to amend Section 3, of IAN act to
provide for resumption of specie pay
ments," approved Jan. IA, 1878. Be it
enacted by the senate and house of repre-
sentatives of the United States Of America.
in congress assembled, that Section g. Of
"An act to provide for resumption of
specie payments" approved Jan. IA, 1875,
be, and the same is hereby so amended
that in lieu of the descriptions of bonds
therein authorized, the secretary of the
treasury is hereby authorized to issue from
time to time, as he may deem necessary,
and in such form as he may prescribe,
coupon or registered bonds of the
United States in denominations of
IS dollars and multiples thereof,
redeemable in coin at the pleasure
of the United States after years
from date, bearing interest at
rate not exceeding 8 per cent per an
mum, payable quarterly in coin, aud to
sell the same at not less than par in coin;
and the proceeds of such bonds shall be
he held and used to maintain the parity of
all forms of money coined or issued by the
United States, but the secretary of the
treasury is hereby authorized to use from
time to time such part of such proceeds as
may be necessary to supply deficiencies in
the public revenues during the fiscal year
1894.
Section "A sum sufficient to carry the
provisions of this act into effect is hereby
appropriated out of any money in the
treasury not otherwise appropriated