The times. [volume] (Richmond, Va.) 1890-1903, 1894-02-11
CARLISLES BOND ISSUE.
ugxr THE sEcRETAgr PROPOSES
TO DO WITH THE MONEY.
un, n. Forced, Unless stopped by Con-
,o t,se IL for Meeting the TX
psnses of the Government


. his views on the subject OF the Issue
-, hands. AT the time OF the hearing
..re was taken that nothing nut '"e
,s, noeasre and general details OF MI
-,,s,c.s n,terances should be made pun
1rhe notes Of the hearing were trans
-,lbed and submitted TO the Secie'"ig
COR such revision Of his remarks AZ ne
i,,, desire TO make, and to-day the re-
,,~t of the proceedings was snnhli''e"
'o the House judiciary Committee ~ T"
.,nred document. The Bailey resoiu''o"
-. hcforc the committee at the ''ne'
"a was TO ascertain II the S'0'''~y
"A that authority TO use the pIoSesuS
~ the bond sale for other Una" -
ON purposes. although the lhquiis ,.','.
.-aS.rcs so take in the selSnloi"Ss
o,estion and the eXpedlency o' '0'i'
issues.
The Secretary's Answers
,ro,chinc the first proposition, the sec
rstary said: ...rsio,s
- 6.lieve II is my duty TO pay pensions
and an other public oolisauo.s' "no'
,nless Congress stops me. shah 10 ~.
,,nt,e stay there l shall endeaVor 10
maintain the credit Of the 1oNe'h'nen'
by raying It's obligations.
Mr. Boatner: "Out OF the pioo'euS - %
the bonds which you now propose ~
seuy' 800.
Secretary Carlisle. q would not use
me proceeds OF the bonds II 1t were possi-
BILE TO avoid H.. but l would not ift t"e
oblieations OF the Government go 10 pro-
test and fall TO pay the Appropriations
made by Congress for legitimate PURPOSES
and FOR carrying on the expenses oi ,he
Government as long as there Is ooilar
900 the Treasury"
ReDiving 10 "A question by Mr.. stone as
fa whether his purpose was 10 use the
proceeds OF his bond issue TO redeem
United States Treasury notes and to re-
pienish the reserve fund, the Secretary
said:
Serious QUESTION.
THAT is my purpose. but want to say
fo YOU gentlemen that the Secretary OF
The Treasury may be confronted hereafter
with a very serious question as 10 what
ho will do in the event that Congress fails
or refuses to make provision TO supply
the deficiency. Suppose, for instance
Congress passes law, which II does every
session making appropriations tor some
particular purpose tthe payment OF pen
sions for an illustration. and makes 1t
tho dutv Of the Secretary Of the Treasury
10 pas them out Of any money IN the
Treasury not otherwise appropriated
(Which is the language of all your appro-
nriafion laws) and the Secretary of the
Interior makes requisiton upon the
Treasury Department for $50oO,0OO to pay
pensions.
"The Secretary Of the Treasury finds
no money i'm the Treasury not otherwise
appropriated except the money that has
been realized from the sale OF bonds. He
,,W be confronted with the question at
,rre whether ne will stop the payment
In ponqions. whether he will stop the
ravmcnts upon the public debt. or wheth-
.r he will stop payment for Work upon
,frers and harbors. whether he viii With
Ma salaries or use the money In the
treasury not otherwise appropriated
Necessity for the Issue.
'rhe Secretary was questoheu as u l wy
necessity for his proposed ponu i'su, 80,
and stated that ne felt the necessity WIS
absolute. He said; ,..a
"a did it very reluctantly. i hesl'"''u u
altogether some time. ieareu W.
waiting TOO long. but the situation al ias'
ler.rne so critical that ! felt II was my
duty especially in view Of what re-
,srded as "A very uncertain prospect OF
securing any immediate relief by Con-
gressional legislation
lie emphasized this point by SAYING
IL was a thing he disliked as much as any
gentleman upon this committee Tor ne
.did not want TO see the public debt
whatever or FOR any purpose whatever
He favored the idea of a popular loan
"a low interest, small denomination bono
running for a short time, so that he
penple having money in the savings
banks might invest. These bonds wouio
b. elastic. as they might be issued ''
meet treasury expenditures ana re-
deemed when there was surplus ol
revenues Such an Issue he thought mlsh
Doe nocessitated because Congress couio
not bv taxation alone provide the neces
sarv revenues for this fiscal year
Mr.. Bailey, Of Texas. the aulhor ol
the resolution which was the SUBJECT VI
inquiry. challenged the Secretary au
thoritv 10 demand gold for the Donds
ana asked n this was not the first tim'
denomination he'd been shown Th'
Secretary replied:
40, Secretary sherman sold bonus lol
gold coin" a..
Mr. Bailey: | mean this Is the frs
time since the act of 1873 was passed
When MIR. sherman sold those bonds
cold was the only legal tender.
c.cratarv Carlisle: What the Sccre
,ar,. nf the Treasury says Is substan
fs1v This: Congress has invested in'
Win authority TO issue bonds anu SCI
the,n for coin. / VIII not ISSUE D''iu y,
and seu them unless the puiehaSel WI
- ia coin for them. because gold coli
lion aud the parity Of the two metals.
Nr Oates: "Bonds are made PaSaup
in cDing' 80,
Secretary Carlisle: Not IN gold coin
bat I'm coin. When Congress authoil"e'
The Secretary Of the Treasury ana com
pouod him by law 10 buy NoeVv'U
worth Of silver u specified Ia dehnit'
terms the buying Of silver and ne dc
u"
The Secretary rejected the plan OF al
issue OF grecnbacks TO meet present emef
centics. and said that while ne would Us
them n Congress authorized the issue
he believed IL to be unwise. because there
was more money in the country nov
than was In use. lie had no doubt o
his authority 10 issue the bonds,s ant
declared that II the Secretary Of tn
Treasury should issue these bonds an'
take the gold and dump II into the mid
die of the Atlantic ocean IL would no
vitiate the bonds.
The ssi=niorage Proposition
Mr. Oates endeavored TO sound th
Secretary upon the proposition TO issu
certificates against the scigniorage. a.
contemplated by the pending Bland bill
secretary Carllsle well. the effect O
that would be that the Secretary OF IN
Treasury would Issue silver certificate
calling FOR dollars. / suppose, when thei
were no dollars behind them. and IL the
came In for redemption. as they ngn
the secfetary Of the Treasury would >
compelled. ! suppose. TO use goid or VIVA
4Il..4rat II.IH