The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-16

of the Treasury by the act of Jan. II. 1875,
but 1t has not been exercised since 1879,
and on account of the high rate of interest
provided for and the length of time such
bonds would have to run, / have not been
satisfied that such an emergency hereto
fore existed as would clearly justify their
issue. But the necessity for relief at this
time is so urgent, and the prospect of ma
terial improvement in the financial condi-
tion Of the government is so problematical
that unless authority to issue and sell
shorter time bonds, or other obligations.
bearing a lower rate of interest than that
specified in the existing law, is granted ty
Congress at a very early day, 1 shall feel
constrained by a sense of public duty to
exercise the power already conferred, TO
the extent at least, of providing ade-
quate gold reserve. If this action should be
taken, Congress ought, nevertheless, to pro-
vide promptly for the deficiency in the rev.
enues during the current fiscal year, and 1
will, from time to time, advise your COM
mittee of the condition of the treasury, in
order that this subject may receive due
consideration"
Section 9701 of the Revised Statutes pro-
vides that "all stocks and bonds, treasury
notes and other obligations of the United
States shall be exempt from taxation by
or under State, or municipal, or local au-
thority." On account of this general statute
1t not proposed in the bill which
the Secretary of the Treasury laid before
the Senate finance committee in the early
part of last week to make any provision
concerning the taxation of the bonds
which he is asking Congress to authorize
him to issue.
The House of Representatives, by rule
adopted some time ago, has dedicated all
it's time, until the 18th of the present
month, to the consideration of the Wilson
tariff bill. and, therefore, it would have
been impossible for the Secretary of the
Treasury to procure any legislation in that
body before that time, and for this reason
Secretary Carlisle thought it necessary to
make the application first to the committee
finance of the Senate, which. he hopes.
will act upon the measure in time to pro-
vide the necessary means for the govern
ment.
CARLISLES BOND-ISSUE BILL
The bill which the Secretary referred to
in the foregoing letter, is entitled "An act
to amend Section of an act to provide for
the resumption of specie payments, approved
JAM A. 1875" 1t follows:
"Be 1t enacted by the Senate and House
OF Representatives of the United States of
ton Of an act to provide for resumption
OF specie payments, approved Jan. IL, 1875,
be, and the same is hereby SO amended that,
in lieu of the description of bonds therein
authorized, the Secretary of the Treasury is
hereby authorized to issue from time TO
time, as he may deem necessary, and in
such form he may prescribe, coupon or
registered bonds of the United States in de-
nominations Of S25 and multples thereof,
redeemabe in coin at the pleasure of the
United states after years from date,
bearing interest at a rate not exceeding
per cent. per annum, payable quarterly in
coin, and to sell the same at not
less than par in coin; and the
proceeds of such bonds shall be
held and used to maintain the parity of
all forms of money coined or issued by the
United States, but the Secretary of the
Treasury is hereby authorized to use from
time to time such part of such proceeds as
may be necessary TO supply deficiencies in
the public revenues during the fiscal year
1894.
"Sec. 2. A sum sufficient to carry the
provisions of this act into effect is hereby
appropriated out Of any money in the
treasury not otherwise appropriated"
Representative Bailey, of Texas. to-day in
troduced the following resolution:
Resolved That it is the sense of the
House of Representatives that the Secretary
30. the Treasury has no authority under eX-
istlng law to issue and sell the bonds of the
United States except such as Is conferred
on him by the act approved Jan. IA, 1875,
entitled AN act TO provide for the resump
tion of specie payment and that the money
derived from the sale Of bonds issued under
that act cannot be lawfully applied to any
purpose except those specified therein"
The resolution was referred to the judi
ciary committee. The committee is under
stood to be against the issue Of bonds.