The Coconino weekly sun., 1894-02-01
THAT BOND ISSUE.

rbe Secretary of the Treasury Before the
 uop.e Judiciary Commlttee-He Gives His Reasons for Issuing Bonds.
 WAsuINGToN, Jan. 26.-For the first time in this congress every member of the judiciary committee of the house attended its meeting yesterday, the magnet being Secretary Carlisle's state mont of his position on the bond issue. The resolution of Representative Bai- lev. of Texas, declaring it to be the sense of the house that the secretary has no authority to apply the proceeds of the bonds to any purpose but re- ,umption, was before the committee.
 Mir. Carlisle spoke in an informal manner for an hour and a half, and was questioned by several members of the committee. It was held by the secretary that the law conferred upon him the authority to issue bonds, all though he stated frankly that until re- gently he had not entertained that opinion of the question. Great pres sure has been brought to bear upon him, he said, for the bond issue, and, although he regretted the ne- cessity for it, as the step did not seem to meet the unanimous approval of the party, yet it was plain to him the necessity was imperative at this time. A deficit of S4s, 900, 900 would exist at the end of the fiscal year, he estimated, under existing conditions, or as a result of proposed tariff legisla- ton, unless congress gave relief to the treasury, which he hoped it would do.
 Representative Bailey asked Mir. Carlisle whether he thought that un- der the law on which he based the right to issue bonds he was empowered to devote the proceeds to the expenses of the government or to redeem notes issued under the sherman act Mir. Bailey explained he did not question the right to sell bonds for resumption, but did deny the proceeds could be ap- piled to other ends.
 The answer of Mir Carlisle was com- prehensive and in the affirmative He explained that most of the appropria- tions made by congress stipulated that any money in the treasury mot other wise appropriated" should be used for carrying out the purpose of the act. Under this the secretary said he could expcnd for current expenses all the money in the treasury whether or not it was the proceeds of bonds, provided only that it was not otherwise appro- priated. He had the power also, he thought, to sell more bonds as he saw the necessity, governed by his own dis erection so long as the state of the treas ury made it necessary to borrow money.
 The leading question from the repub- lican side was put by Mir. Ray, of New York, who asked: 'Mr. Secretary, I desire to put this question, which you can answer or not, as you think best The resolution declares that the pro Ceeds of the bonds proposed to be sold can only be used by the secretary of the treasury for the purposes declared in the act of 1879, to-wit: Redemption of United States notes. The question is this: Suppose this committee thinks that to be the law, do you think it wise, advisable or eXpedient for the house of representatives to so formally vote or declare2 Whether or not such declara- tion would embarrass the treasury de- partment and intensity the financial strain now on the country?"
 The reply was: "I do not want tc tell this committee what to do, but can say it would embarrass the treas ury department, although l hope il will not become necessary to use any of the proceeds of the bonds sold for the payment of the current expenses ot the government"
 Mir. Ray was the author of the mi nority report signed by all the repub' lican members of the committee in the Fifty-second congress, which sustained the right of the secretary to issue bonds the democrats being at tlfat time opposed. Mir. Ray holds to his former position, but denies the proceeds of 8 bond sale can be used for current ex penses. The other republicans of the committee are thought to be with him