St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-11


they might, the secretary Of the treasury
would be compelled, l suppose, to use
gold. or whatever else lie had to redeem
them.
Mr.. Boatner-Could YOU not coin the
silver and use that?
Secretary Carlisle - Yes, in about
two years; it would take about that
time.
w. A. Stone. of Pennsylvania-Have
you not got enough silver to redeem it?
Secretary Carlisle-No, sir. Certifi-
Gates ara outstanding against what we
have except about S5.000,000 or $1,000
900.
Mr.. Stone What would be the objec-
ton to issuing certificates on account
Of the seigniorage?
Secretary Carlisle-I was going to
state that if we should
ISSUE CERTIFICATES
with nothing behind them but bullion l
think they would be greatly discredited
in the public mind.
Mr.. St0ne-And in order to keep up
the credit you would have to redeem
them in gold?
Secretary Carlisle-They would have
to be redeemed in something.
Mr. StOne-If you redeemed it in
silver it would be discredited. and you
would have to redeem it in gold?
Secretary Carlisie-Thev would call
fOrsilver dollars, and there are no silver
dollars 10 redeem them.
In answer to question as to how fast
the coinage of the sei2niorage could be
pushed. Mr.. Carlisle said:
"lf all other coinage were suspended
at the minis l estimate that we would
coin about four million silver dollars
per month, or S4S 100000 year"
The bond question was treated very
deliberately by Mr.. Carlisle. His pur-
pose as to using the proceeds of the
sales of bonds is sharply set forth III the
following colloquy:
Mr.. StGne-I understand your purpose
is simply to sell bonds to redeem United
States and treasury notes, and the sur
plus TO replenish the reserve fund?
Secretary Carlisle-That is my pur-
pose, but | want 10 say to you. gentle
men, that the secretary of the treasury
may be confronted hereafter with
very
SERIOUS QUESTION,
as to what he will DO in the event con-
gress fails or refuses to make provision
to supply the deficiency. Suppose. for
instance, congress passes a law, which
it does every session. making appropria-
tons for some particular purpose-the
payment of pensions, for Illustration
and makes it the duty of the secretary
CT the treasury to pay them out Of any
money in the treasury not otherwise
which is the language of
all Of your appropriation laws-and the
secretary of the interior makes a raQui-
sition upon the treasury department for
money to pay pensions. The secretary
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 con-
frOnted with the question whether he
will stop the payment of pensions.
whether he will stop the payment upon
public buildings, whether he will stop
payment for work upon rivers and har-
borS, whether he will withhold salaries,
or use the money in the treasury not
otherwise appropriated.
MIR. Boatner-Would you consider it
improper to give your opinion as to the
duty of the secretary OF the treasury?
Secretary CarliSle-I will give it very
plainly. believe that it is my duty to
pay pensions, and all other
PUBLIC OBLIGATIONS.
and, unless congress stops me. [ shall
do so while [ stay there. L shall en-
deavOr to maintain the credit of the
government by paying its obligations.
MIR. BOatner-Out of the proceeds of
the bonds which you now propose to
sell?
Secretary Carlisle would not use
the proceeds of bonds if it were possible
to avoid it, but | would not let the obi
cations of the government go to protest
and fail to pay the appropriations made
to congress for legitimate purposes and
for carrying Oil the expenses of the
government, as long as there is dollar
in the treasury
Mr. Carlisle further stated his reluct-
Rnce IN resorting to bonds.
AS to the kind of bond which Mr..
Carlisle thinks congress should author
iZe, there was the following:
Mr.. BOatner - The plan that Won
suggest to remedy this trouble would be
tor the secretary to issue bonds for
specific purpose; is that the point?
Secretary Carlisle think a short
time bond should be authorized. bearing
low rate of interest, to be issued in
small denominations. which | think
would be taken largely by the people
who have money III savings banks, and
The secretary could sell them or use the
proceeds in payment of expenditures.
and redeem out of the further revenues.
That was my recommendation on the
subject, simply because L saw it was
impossible for congress to provide by
taxation any revenue which could be
collected in time for this fiscal year.
Mr.. Stone-And you Old not see anv
disposition OIL the part of congress TO
do it?
Secretary Carlisle Il concluded to
issue bonds under the existing author-
ity, a thing | dlsliked as much as any
gentleman upon this committee, for
did not want to see
THE PUBLIC DEBT
of the country increased in any way
whatever, or for any purpose whatever
The gold clause in Mr.. CarlisIe's
offer of bonds brought out the follow
ing explanation from the secretary:
Mr.. Bailey How are you to be paid
for the bonds now advertised for sale.
DO you demand gold coin?
Secretary Carlisle-Yes, sir; the pro-
poSal calls for gold coin.
Mr.. Bailey-This is the first time
there has been any discrimination.
Secretary Carlisle - No. Secretary
Sherman sold bonds for gold coin.
MI. Bailey mean this was the
hrSt since the act of 1878 was passed.
When Mr.. Sherman sold those bonds
gold was the only legal tender.
secretary CarlisIe-What the secre-
tary OF the treasury says is substantially
tlls: congress has invested ne with
authority TO issue bonds and sell them
LOT com. Will not Issue bonds and
sell them unless the purchaser Will rive
gold coin for them, because gold coin is