The times. [volume] (Richmond, Va.) 1890-1903, 1894-01-26
THE PROPOSED BOND ISSUE.
Secretary Cnrlisle Addresses the House Ju-
dietary Committee.

dietary Committee.
WASHINGTON, d. c.. Jan. 25.-Secre-
tary Carlisle addressed the House Judi
ciary Committee to-day upon the subject
Of his proposed bond issue. The commit
tee has under consideration a resolution
offered by Mr.. Bailey dem. TeX) de-
claring that the Secretary has no authority
under the present law to issue bonds.
The subcommittee having charge Of the
resolution reported II fayorabiy 10 the
fun committee. The full committee dis
cussed the matter, but on motion OF A,r
Goodnight Dem. Ky). postponed final
action ON it until Secretary Carlisle could
be heard from. The Secretary occupied
an hour and o. half explaining his posi-
tiOn regarding the proposed bond issue
and answering questions regarding IT,
He spoke Of the deficiency. and said
if il continued 70 grow at its present
rate it would be in the neighborhood of
$4,000 900 at the end Of the present year.
He disliked ne said, 10 have TO issue
bonds and had given the matter much
thought before doing so. At first, he
doubted his authority to do so. but after
much study concluded that he had. Great
pressure was brought to bear TO have
him issue the bonds.
Texas. Mr.. Carlisle is reported to have
said that under the resumption act he
had authority 10 issue bonds, and TO
use the proceeds for deiraying the eX-
penses Of the government and for the
redemption of notes issued under the
Sherman law. Mr. Bailey replied that the
proceeds OF bonds issued under this act
could only be used for the purposes stpu-
lated by that act; that is, redemption.
This was the point on which the Secretary
and Mr. Bailey differed, and Mr.. Bailey
claimed that he developed the fact that
the Secretary asserts the right TO use
the proceeds OF the proposed bond sale
for defraying the general expenses Of
the government.
Only for Purposes of Redemption.
Mr. Ray Rep., N. Y.,) said: "Mr
Secretary, | desire 10 put this question,
which you can answer or not, as you
think best The resolution declares that
the proceeds of the bonds proposed 10 be
sold can only be used by the Secretary OF
the Treasury for the purpose declared IN
the act OF 1873, the redemption Of United
States notes.
"The question is this: Suppose this COM
mittee thinks that 10 be the law, do you
think Il wise advisable. or eXpedient for
the committee or the House OF Kepresen-
tatives TO so formally vote or declare2
Would not such declaration embarrass
the Treasury Department and Intensity
the financial strait now upon this cOun-
try2"
Secretary Carlisle replied II do not
want 10 tell this committee what 10 do.
but / can say that il would probably
ernbarrass the Treasury Department, al
though I hope 1t will not become neces-
sary 10 use any OF the proceeds OF the
sale Of bonds for the payment OF the cur
rent expenses OF the government"
The Secretary further said that as a
matter Of fact there was not now ana
never had been any actual segregation
of one hundred millions Of gold. or any
other sum from the other funds in the
Treasury. There was no law on the sub
iect said the Secretary, requiring the Sec
retarv TO maintain this gold reserve, and IL
was a mere fction. a bookkeeping device.
n had grown largely out of the act Tor
the reorganization Of national banks ana
us basad upon an assumption, an under
standing. merely.
secretary Carlisle also said that when
ever the resources Of the Treasury were
exhausted, ana Congress had directed him
to expenl money for q certain object
he should unhesitatinely draw on the gold
reserve lie should always while he re-
NAMED az the head Of the Department. use
the power and discretion vested IN him
10 prevent the Government from going 10
protest.
Great interest IN the matter was shown
bv the committee. and, for the first time
TINS session, every member was present.