The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1894-01-14
THE BOND QUESTION.
RIGHT OF SECRETARY CARLISLE
TO ISSUE BONDS.
-
No Authority to Issue Bonds for the
Purpose of Meeting Current
Expenses,
ADDITIONAL CLERK SECURED FOR THE
HOUSTON PosToPFIoB,
The Corpus Christi oollcotOrship Decision on
Judge Longs Pension-Te1m
Postal Matters,

! Washington, January ls.--Secretary Car
isles reported purpose OF issuing bonds by
virtue Of the general authority granted
the secretary OF the treausry under the
act OF 1875 has aroused the interest OF
some leading constitutional lawyers in tho
house as to the legality OF such action. 1t
Is well understood that Mr.. Carlisle would
not resort to the general act except FOR
the purpose OF meeting pressing demands
Tor cash.
Judge culberson of Texas, chairman Of
the judiciary committee. and most IL not
all his colleagues on that committee say
that while the secretary has the general
right TO issue bonds, he can not use the
proceeds derived from their sale except for
the single purpose Of redceming outstan-
Ing treasury notes. This, Of course would
preclude the possibility OF using the pro-
eeeds OF the bond issue Tor meeting cur
rent expenses.
Judge Culberson has made an exhaustive
study of the bond question, and in giving
his Views today he referred TO the report
made 20 congress on July G, 1892 II waa
in response to resolution OF inquiry pre-
scented by Representative Docllery asking
whether, under the act Of 1876, the Recre-
tary Of the treasury had the right TO use
tAhN hANNtSAH vi any MONIES IN me trClF~
ury arising from the sale OF bonds for
any purposes other than those mentioned
IN the act
Judge Culberson's report was signed by
Congressman oates OF Alabama, by New
OF Indiana, StocSdale of Mississippi Good
night OF Kentucky, Boatuer OF Louisiana
Layton OF ohio. Wolverton of Pennsylva-
Ma, Fellows OF New York, and buchanan
of NIginin. All OF these gentlemen, with
inc exception OF Messra. Fellows ami
buchanan are members of the present
mouse OF representatives., and are regarded
as authorities on legal questions.
In the report they say there Us no limit
alton upon the authority Of the secretary
of the treasury to sell bonds for the pur-
pose OF redemption under the act, but the
proceeds derived from such sales can not
be used for other than redemption pur-
poses.
4 minority report was also presented
at the time Judge Culberson's report was
put in. Mr. Raymond of New York. still
a 5uen1hnr of the house, md four other
republican members. Joined In the report
Judge CulbcrHon shys. however, thnt Sec
rotary Foster prepared the report The
minority insisted that the secretary of the
treasury had the right not only to Issue
bonds without any further authority from
congress, but also had the right to use the
proceeds from the sale for current ex-
penses
A peculiar feature of the CuIberson re-
port s In reference TO the emphatic Lam
gunge OF Mr. Bayard. now ambassador to
Great Britain, concerning the reserve
fund Of Sl00o0O.0O0 The expression was
used by Mr., Bnyard when member OF
the senate and while the act OF 1889 gas
under consideration. Mr. Bnyard said:
ut can not be too cmphatically stated
and repeated that gold was bought with
bonds OF the United Stntes with one pur-
pose only. IT was 60 procure and main
tain resumption, and IL II be used for any
thing else It Is a porversion of the funds
and breach OF trust"