Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1894-01-26
LAW FOR THE ISSUE
CarIisIe's Authority to Offer
Bonds fo1sa'e.
WHAT mToGDA Ho3sE ooMH1rrEz

His Astherity BsseA seIshs CLAUSE In Ap.
To he Talsen from Funds In the Treasury
Not Otherwi-e Appr@rrsated"-Hc Ac-
knowledges . Ch.age or Views on the
sahjecs-Ths Esti..stcd Deficiency.
WASHINGTON, Jan. a6.-For the first time
in this congress every member of the
| judiciary committee of the house attended
its meeting. the magnet being Secretary
Carlisle's statement OF his position on the
bond issue. The resolution of Bailey of
Texas, declaring it to be the sense Of the
house that the secretary has NO authority
to apply the proceeds Of bonds to any pur-
pose but resumption. was before the COM
mittee. Carlisle spoke in an informal way
for an hour and half and was questioned
by several members Of the committee 1t
was held by the secretary that the law
conferred upon him the authority TO
issue bonds. although he stated frankly
that until recently he had not entertained
that opinion on the question. Great pres
sure had been brought to hear upon him,
he said. for the bond issue. and although
he regretted the necessity for it rs the step
did not seem to met ;the unanimous ap-
proval Of the party. get it was plain to
him that the necessity was imperative at
this time.
| ''Noa Otherwi.e appropriated"
A deficit of ss0.0OOO would ex:s: at
the end of the fiscal year, heestimated, un-
der existing conditions or as a result of
proposed tariff Legislation, unless congress
gave relief to the treasury, which Inc hoped
it would do. Representative Bailey asked
Carlisle whether he thought that under
the law on which he based the right to is
sue bonds he was empowered to devote the
proceeds to the expenses Of the government
or to redeem notes issued under the Sher-
man act. Bailey explained that he did
not question the right to sell bonds for re-
sumption, but did deny that the proceeds
could he applied to fther ends. The
answer Of Carlisle was comprehensive and
in the affirmative. He explained that
most Of the appropriations made Ivy con-
gress stipulated that nny money in the
treasury mot otherwise appropriated
should he used in carrying out the purpose
of the act.
Covers the Whole Case.
Under this authority the secretary said
the money in the treasury down to the last
dollar, whether or not il was tine proceeds
Of bonds. provided only that it was not
otherwise appropriated, He had the power
also. he thought. to sell more bonds as he
saw the necessity. governed by his own
discretion 80 long as the state of the
treasury made il necessary to borrow
money. The leading question from the
Republican side was put by Ray of New
York. who asked: Mr. Secretary, l Ge-
sire to put this question which YOU can
answer or not, as you think best: The
resolution declares that the proceeds of the
bonds proposed to he sold can only be used
by the secretary Of the treasury for pur.
poses declared in the art Of 1879, to wit.
The redemption of the United States notes
| Reply tn the Republican Question.
"The question is this: suppose this com.
mittee thinks that to he the law, do YOU
think it wise, advisable. or expetlient for
this committee-fOr the house of repre-.
sentatives-tO SO formally vote or declare.
Would not such declaration embarrass the
J treasury department 9nd intensity the
financial strain now on the countryr'
The reply was: Il do not want to tell
this committee what to do, but can say
that it would probably cmbarrass the
treasury department.. although hope i,
will not becOme necessary to use any of the
proceeds Of bonds sold for the payment o
the current expenses Of the government :
: Ray WAS the author of the minority re
: port signed by all the Republican mem
} hers Of the committee of the Fifty-seconl
congress, which sustained the right of tn.
secretary to issue bonds, the Democrats he
ing at that time opposed.
standing of the Com naittee.
l.-.n~y Il. l..