The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-29
CARLISLE ON Ills BONDS.
BE ASSURES BANKERS THAr THEIa
TALIDITF IS NOR DISPUTED.


B"rdeu OF the Judiciary Comr.ittee's Dis-
cu.sion-Thnt use Co..,d.r. Hi- Look QUE.
Secretary Carlisle came over from washina-
ton yesterday. and at the Fifth Avenue Hotel
met Assistant Treasurer Conrad n. Jordan and
others. The main reason for the Secretary's
visit Mt this time is to learn how the proposed
bond issue is regarded by the banking CONS
munity OF New York city.
Up to date none Of the New York banks has
subscribed to the proposed issue. and the New
York Life Insurance Company which. through
Its President. John a. Mccall offered to take
S5.OO0.OO0. has withdrawn Its offer since the
terms OF tho proposed issue wero made known.
The Secretary dined last evening with Perry
Belmont and few friends. and on his return
to the hotel made the following statement:
1T has been enormously published in some
newspapers that the Committee on Judi
clary Of the House OF Representatives had
agreed to and reported a resolution denying
the authority Of the Secretary OF the Treasury
to Issue and sell bonds. as proposed in his re-
cent circular, and these publications have
evidently made an uniavorable impression
upon the minds Of some who contem plated
making bids for these securities
Inc only resolution in relation to this sub
lect'that has been before the committee is as
follows:
"ho r,L That is the Of tn. House Of Repre-
authority under existing mw to issne aud sell the
bonds OF the United states except such az conferred
upot him by the act approved Jan ~, 1870 entitled.
m:Sss Ana iGsy ne money derived RON he sale
to ANY purposes except those fed therein
" 1t will be seon that this resolution assumes
that the authority To- issue bonds was con-
the act OF january IL, 1878. and that such
authority authority stiil exists but Il asserts that the
except for the purposes OF resumption
The Official sterographic report OF the pros
ceedings in the committee when the Secretary
Of tho Treasury nppeared before 1t last thurs
day. shows that his authority to issue bonds
was not questioned by any member. the only
cceeds for any other purpose thgn the redslnp-
tion OF United states notes. Mr.. Bailey. the
author Of tho resolution, distinctly admitted
H.: Secretary. pr; Bailey said:
The resolution does not impeach your
right to issue bonds: 1t expressly recognizes
II. but questions your right to Amply the pro-
feeds to any purposes except those specified
The Judiciary Committee Of the House ex-
amined and reported upon this same aues.
then conceded that the AUTHORITY existed UNI
der the act Of 1879. The question as to the
use the money in any particular manner or
for any particular purpose. Is wholly distinct
and soil the bonds. No mattcr what he may
do with the money the validity OF the honis
will not be affected, and there L, therefore. 40
vest In these securities on tie ground that the
proceeds might possibly be used for otner
The Secretary said also that he would re-
mai main IN town Ior day or tive. and that should
they would be- cordially welcome.
WASHINGTON ACCOUNT OF cARLIsLE's MISSION
WAsEINGToN. Jan. 2S.-Two reasons im-
PEELED Sc, Secretary n Carlisle to 90 to New YORK
at New qSsk Gs3 sS aG
OF custom dues. aud the other was 10 ascer-
tain the prospects OF bids for the new bond
Under the old system in in yosue In New YORK.
checks were received by tho Collector In pay
dered by Judge Iscombe. made the Collector
responsible for all cheeks. whether the banks
Gasned L them or not This responsibility Col
por.ors then. IA n matter OF retaliation. ceased
:" pay their customs dues in gold checks, but
before this order was issued to refuse checks
gold payments averaged for tho first twenty
the day the order was put into effect to loss
than one hall OF one per cent. In u few days
gated more Thar than $2.00O. O60 In tie present
drnln on the gold for ordinary expenses Of the
new system Of transfer order was suggested
for the payment OF customs dues. and waI
th9psht 10 IT, aS,rs"6lG a. the mp0TTgTn .
importers. however. still object, u + saih aud
Deputy Assistant Treasurer. Mnhleman's visit
Rotary Carlisle TO New York last night.
Tho action Of tho House Committee on the
Judiciary in reporting the Bailey resolution
tRVordbly has had tho effect Of drtrrruG any
large bids So far from being rcCevad Tor tho
new bonds. The action. too. OF the knights ot
Labor In seeking an injunction against Serre-
taIy, Carlisle to prevent hin from isGuing
bonds has had diSquieting effect
Treasury officials have no doubt OF the
power IL the Secretary to US" the go "a derived
Tor these bonds for any Legitimate Government
expense. and Secretary 'ariss Will while in
New York assure all prospective bidders that
they need have no Fears on any score about
bidding for the bonds, and that they will 10
ain ply protected.
:. Material notifications will bo made in the
Knights OF Labor petition for an inUtnc-
ton against the issue OF bonds 10y Ssr-
reIary Carlisle before It is presented in
court tomorrow. The artornsys were mt
work upon it here until after midnight
last night and have heen In con ultltion again
nearly all DIV with Gen. Allen who will Ope1
the argument ia court at 10 \. W. tom 1rruw.
THE Petition has heen changed BY Joining
General secretary HAYS aud Mr.. Mcguire with
liranl Master Sovereign Ms petitioners, and
has been brnadened and strengthened n many
poets, particularly on technicni points.
which. as the counsel anticipate. will max eirhs
petitioners right to standing in court clearer