Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-01-25
CARLISLE EXPL AIN S
His Talk Before the House Judiciary
Committee Today.
He Believes He Has AuthOrity-As to
Using the Funds for Public
Expenses.

For the first time in this Congress every
member of the judiciary committee Of the
House attended it's meeting today, the mag
net being Secretary Carlisle's statement Of
his position upon the bond issue.
The resolution Of Representative Bailey
Of Texas declaring 1t 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.
Mr.. Carlisle spoke In an informal way for
an hour and a half, and was questioned by
several members of the committee. FIRE.
Quently he refreshed his memory from
rotes upon the treasury's finances. 1t was
held by the Secretary that the law con-
ferred upon him the authority to issue
bonds. although he stated frankly that until
recently he had not entertained that opin-
ion on the question. Great pressure had
been brought to bear upon him. he said.
for the bond ISSUE: and although he re-
GREETED the necessity for it, as the step did
rot seem to meet the unanimous approval
of the party, yet 1t was plain to MIN that
the necessity was imperative at this time
A deficit of sSO,OO0,GO would exist at the
end of the fiscal year, he estimated under
existing conditions or as result OF pro-
posed tariff legislation, unless Congress gave
relief to the treasury, which. he hoped, 1t
would do.
Mr.. Bailey's Question.
Representative Bailey asked Mr.. Carlisle
whether he thought that under 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 re-
deem notes issued under the Sherman act
Mr. Bailey explained that he did not ques-
ton the right to sell bonds for resump-
ton. but did deny that the proceeds could
be applied to other ends.
A Comprehensive Reply.
The answer of Mr.. Carlisle was compre-
hensive and In the affirmative. He explained
that most of the appropriations made by
Congress stipulated that any money in the
treasury not otherwise appropriated ="
should be used for carrying out the pur-
poses of the act. Under this authority the
Secretary said that he could expend for cur
rent expenses all money in the treasury
down to the last dollar. whether or not it
was the proceeds Of bonds provided only
that 1t was not otherwise appropriated. He
had the power, also. he thought. to sell
more bonds, as he sew the need, governed
by his own discretion, SO long as the state
Of the treasury made 1t necessary to borrow
money.
Mr. Rays InterrOgatOry.
The leading question from the republican
side was put by Mr.. Ray Of New York.
this question. which you can answer or
not, as you think best: The resolution de-
clares that the proceeds of the bonds pro-
posed to be sold can only be used by the
Secretary Of the Treasury for the purposes
declared in the act of 1879, to wit. the re-
demption Of United States notes. The
question Is this: Suppose this committee
thinks that to be the law, do you think 1t
wise, advisable or expedient for this COM
mittee for the House Of Representatives to
SO formally vote or declare? Would not
such a declaration embarrass the Treasury
Department and intensity the financial
strain now on the country"
The Secretnry's Answer.
The reply was: II do not want to tell this
committee what to do. but can say that
1t would probably enbarrass the Treasury
Department, although hope 1t will not be-
come Lecessary to use any of the proceeds
Of bonds sold for the payment Of the cur
rent expenses of the gov eminent"
Mr.. Ray was the author Of the minority
report, signed by all the republican MEM
bers Of the committee last session. which
sustained the right of the Secretary to issue
bonds, the democrats being at the time OPP
posed to 1t.
Mr. Ray holds to his former position. but
denies that the proceeds of a bond sale can
be used for current expenses. The other
republicans Of the committee are thought
to be with him. From the tenor Of the dis
cussion it was judged that Messrs. Bailey
(TexD, Boatner q.a) and De Almond (Mo)
are in favor of the Bailey resolution.
The Secretary said that all money going
into the treasury became part of the gen.
eral assets, and that the hundred million
reserve was not constituted by law a spe-
cial fund
The committee will meet tomorrow to
consider the resolution and perhaps will
reach a vote upon whether or not 1t shall
be favorably reported to the House.