The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-19
EAGER FOR THE NEW BONDS.
SECRETARY CARLISLE EXPECTS THE
OFFERS 10 REACH 5000, 900. 900,

Come from TO Pay for the BOuds-Popu-
list and SILVER Senators aud Representa-
uve- Oppose the sscretary's Policy.
WASHINGTON. Jan. 1S-Secretary Carlisle re-
eeived a number Of offers to-day for his new
bonds. One offer was for 100000 at Sl.1S
Secretary Carlisle believes. from offers already
received. that the total Offering will aggregate
nearly S2OO.O0oOOO and that the price will
reach 81. 20. making the bond practically bear
81 per cent. interest
In view Of the fact that the new issue Of
bonds will be sold for gold only It is interest
ing to note where tho gold in the United States
ia. offlcial returns made to Comptroller
Eckels by national banks. on Dec. 10 last.
throw some light on this subject. Since that
date the Treasury has lost about S13.0O0,OOO
in gold which has found its way into the banks.
1t is curious to note at this time that the ma
tionnl banks OF Now York city alone hold more
gold than the Treasury OF the United States. or
rather that II contains free gold" In the
figures given gold certificates are included In
the gold. The returns in the principal cities
show New York. SS300O,U00; Brooklyn.
s45oOoO; Washington. 5000. 900; Baltimore.
81 .o7o 600; Cincinnati. $l.20OOo0; New Or
leans 1910. 900: ST. Louis 81. 400. 900; Kansas
City, 81 ,Ol5. 900; Boston. 5000 600; Chicago.
SIP, 700 900: Philadelphia. $4,000. 900: Louis
VILE $500 OO San Francisco $780, 900;
Milwaukee. 100000.
Treasury officials who have taken the
trouble to search the records COLL attention to
tho fact that practically the same state Of
affairs existed In 1857. during the tendency OF
the Walker tariff. Revenue declined and
number OF loans and bond issues wero made
to keop up current expenses and pay maturing
bonds. From 1857 to 1881 the cash in the
Treasury had declined from SlS. 70l 900 in the
former year to S2.SB2 900 In the latter year.
and tho public debt for the same period. less
cash in the Treasury. had increased from
So, 99S. 900 in 1867 to sS7.71S.O0O In 1881. 1t
was at this period that what are known as war
loans began. reaching within four years
national debt OF 81. 1855. 431.57l.
Chairman Wilson OF the Com mittee on Ways
and Means. speaking OF the proposed issue OF
bonds, said that Congress should have given
Secretary Carlisle authority to issue a low rate
short time bond. Failing to receive that au-
| thority. the Secretary had done the best he
could under existing conditions. The sale
the eS SecictarS had done the right thing There
is, | suppose no serious con ention that he has
not the legal right to sell bonds That was
last Congress by Judge Culborson. on the ques-
tion OF the power Of the Secretary to use the
proceeds OF bonds and under the act OF Jan.
| II. 1875. for any other purpose than that OF
| maintaining the gold reserve"
! Committee on Ways and Means. cordially ap-
proved the proposed sale OF bonds; 1t was
| deficit meant the speedy Insolvency Of the
Treasury. and that would be followed by uni
wHsd cnaso e6a :usnenson Of credit and
there would be no business transacted. /
IN i SFs Sso S
last March on the financial situation ! sad
that the sale o. bonds was ths most PRACTICAL
m ssnt..,..,.. ,mo. crun,,,, =, Nav
a.. I'M al IN ftnastinn tha hortV nj
the Secretary TO sell bonds under conditions OF
the call. The resqmption act" said Mr..
eefta in'0 purpose Bat Mr. '" Carlisle
acter OF the bonds. But it is necessary. no
doubt to procure m tS from s2%9 source
Chairman dgnesn" Of the Com@itteeon the Judiciary.
OF he sH SSi. Of Sn ss
the act Of 1873 in report made to The Fifty.
ring to the sale Of bonds;
Thu, PEoy'9n Of tes act sOn,mps'sd and sHhof
ars the .urUlu. revenue: from 'm e., TO tm. m ne
ana ns 10 nrT n. sc INTO fn eseu
There no limitation upon ne authority OF the sscre;
redemption under This act but the proceeds derived
lion purposes
As to the method Of restoring tho gold re-
serve In case OF depletion, the report said
In tbs absence Of available surplus revenues by the
snd:Ii ss ;d% I'M '4GSa Ss 5:,ioTsd
o,hsr~rss arpropri.Isd. and when such
70 the reserve fund they are not saoi'e't to
be used for any other purpose
This report was made to the House July o.
1872 and laid on the table.
Mr. B.9fEnri6gs Of 81 6s Wsr S Ens shs
COMMITTEES. nnds nothing to leritieise 10 tho
'hr ss t sond the SSn
tain the ressmRtOH fInd but not iSE az any other
=. - 81 a Usa Eal Va n Faa
oiutlon preventing the Secretary from borrow
'nE No SoG m ieS Of the Ways and Means Com
mlttee'" said he lis expected to take such
action. nor do know OF anybody in tine House
From talks with leading Democratic rep
rssenta;iyes to-day. 1t Is manifest that many
authority for his call. One Eastern Democrat.
who seemed to reflect the foregoing sentiment,
ra,h t6e issue but that inasmuch as the
Government needed the money badly. no one
could impeach the SeeretaIy's motives or
funds necessSry to tide the Government over
the present emergency. -, 49,,
There is no law on our statute books, he said,
70 keep up the parity OF two kinds OF money.
sary The coinage Of the silver now in the
Treasury would furnish money enough to run
the Goyernment until next winter. BY that
time it would be kpowp what our tariff and
tax legislation would yield
Mr.. Oates Dem. Ala,l member OF the Ju-
tary CaTlsls's bond issue. He does not see
the absolute necessity Tor It Congress. he
says, might authorize the coinage OF the
seignioraRe OF the silver now In the Treasury,
amounting to about $50 100000. and issue
notes against II. The Government has this
silver and. II II can be used he Is OF the opin-
Ion thai il should ne He does not think the
Government should borrow under these cir
eumstances.
the proposed bond issue, said; It's an infer
nal outrage and ineXcusable. There Is no
reason why the Administrator cannot tide
over any embarrassment IN the matter OF
revenue and expenditure without paying in
terpst on the loan. HoW2 by issuing green
backs, the same as was done In war times.
Everybody will take them. because Of the
faith they have that they will DO redeemed.
Why what Is the difference between that and
the basis upon which bonds are issued Moth
ing at all They are sold upon the faith OF the
people that some one Is going to dig out OF the
earth the wealth that Will enable the Govern
mont 10 redeem them some time In the future.
Nobody cares how long that may he. You
can fix n date for the redemption OF the green
backs il you like, although, as a matter OF fact.
they are redeemed when they are accepted BY
tba afFi for dua6 A (ioVeTumanl that "A