The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-19
Condemned by Democrats and
Populists in Both Houses.
THE LAW VIOLATED. SOME SAY.
Brisk Demand for the Securities.
and at a Coed Price.
Rail Manufacturer Tom Johnson. Pro-
tected by Patents, Wants steel Rails
on Free List-Ssaator walthaI Re-
signs-Coilecter BIaehmas Con fir med

WAsHIseTos CITY. Jan. 1s.-Now that
Secretary Carlisle has taken action on the
bond ques non there 10 feeling of relief
among treasury officials. who have been
viewing with uneasiness the decreasing
gold reserve. Printing will be pushed
rapidly. but the bonds can hardly be ready
for delivery before February /. and will
bear interest from that time. Among the
large crowd Of callers on Carlisle today was
New Yorker who had come to announce
personally that he was willing 10 take the
whole $50. 600 900 Of bonds. 4 request for
his name was refused. The aggregate
amount of offers received before the circu-
lar was issued was $40 o0o. .000 All the
offers so far made have come from persons
and firms in New York city. One offer to
take SIC. 600 900 at f1s has been received.
II was announced tonight that Secretary
Carlisle would not make public the names
of persons Offering to take bonds. the
amount subscribed for or the figure offered
for them. To make public the figures
would give late bidders an opportunity TO
offer better terms than those offered by the
earlier bidders. 1t is said unothcially that
the s5o.eo0 o0o offer was at the minimum of
premium il7.22a There is said to be no
likelihood of acceptance of this offer or
any similar one. as it Is the secretary's de-
sire to make the loan popular one. to
which the public generally may subscribe.
On this theory it is proposed to encourage
offers for small lots from all sections of
the country, rather than have the entire
loan taken by few dealers in large blocks.
This idea naturally includes hope that
small denominations will be taken in pref
erence to larger ones. This would involve
the issue of great many more bonds. 1t
is believed from the bids already received
that the total offerings will aggregate
nearly 500 0o0, 900 and that the price will
reach lao, making the bonds practically
bear but pa per cent. The issue for the
present will be confined to denominations
of $50. 500 and 81, 600 coupon bonds, and
$50, 500, $1,000 and $1,000 registered
bonds. In case it Is deemed advisable, ar
rangements will be made for $500 coupons
and S. 600 registered bonds.
The plates for the new bonds were made
By the bureau OF engraving and printing
last spring by order Of ex-Secretary Fos-
ter, in anticipation of an Issue of bonds
during his administration, but the plan
for Issue was finally disapproved by Presi-
dent Harrison. TIE nsE issus of bonds
will be redeemabis in gold.
Estimates made by national banks show
that the national banks of New York CITY
alone hold more gold than the treasury of
the United States. or rather they contain
more free gold. In the figures given the
gold certificates are included in the gold.
Returns in the principal cities show:
New York. .sss. 900. .op Kansas City & I,oIsooo
baltimore - 9,979.tolf Boston $500. 9faOco
Brooklyu..... fSo,o1qchicago. ..... le.-oo.0e0
Washington. soa.ooliPhiiadelpnia.. x7.oo1.@o
Cincinnati. l.20o.oa Louisville 5000
New Orleans. 45o.00,s,sn Francisco ssOoj
st Louis .... 2,t0.ouo Milwaukee,. 10000
Treasury officials who have taken the
trouble TO search the records call attention
Ia the fact that during pendence Of the
Walker tariff of 1857 the revenues de-
clined and number of loans and bond
issues were made to keep up current ex-
penses and pay maturing bonds.
Leading members OF the house judiciary
committee are disposed TO criticise the
secretary's action. in view of the fact that
the senate has before it resolution de-
signed to prevent the issue of bonds. This
opinion is largely confined. however, to
men identified with the silver movement.
Such weli-known anti-silver men as Tracey
tary's course.
the bond issue. at is absolutely certain. !"
said be, that this government can get
along without dollar of increase of the
bonded indebtedness. 1t can be done by
reducing expenditures and by the addi-
tionaI revenue derived from the pending
tariff bill. In my opinion no party in
time of peace can successfully urge before
the people increase of the national debt
and of bonded Indebtedness.
Dingley of Maine saws: ~ have no
doubt the act of ISIS gives authority 10
the secretary to issue aud sell bonds to
maintain the gold redemption fund.
doaht. however whether the act proper Y
construed gives the secretary power to
issue and sell bonds to pay the current ex-
penses of the government 1t seems that
10 accomplish that object il will be neces-
.ary TO obtain additional legislation
Oates of Alabama opposed the issue of
bonds. He says: II think the people of
the country generally are opposed 10 in
crease of the public deb. unless there IL
great ecessity FOR il. and do not believe
in this instance such necessity exists"
Catehings of Mississippi says: There
appears TO be a necessity which we can not
avoid"
Jerry Simpson says: ''It is an Internal
outrage and inexcus aDle.
Johnson of Ohio says: Il do not like
the idea Of bond issue, but there was ne
eessity for the money. and | believe it is
much better TO borrow money 10 meet 3
temporary deficit than tx tax praciic-
ally permanent which would pile up sur
plus after the temporary strain had
passed
Chairman Wilson. OF the ways and
means committee, said he had been so en-
crossed with the tariff bill that he had not
been able TO give attention TO the bond
question. adding: The sale of bonds xAs
necessary. and the secretary has done the
right thing"
Bourke Cochran says: 1T vas only thing
TO do. The constantly increasing deficit
meant speedy insolvency of the treasury
and would have been followed By universal
bankruptcy"