Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-02-13
CARLISLE QUESTIONED
As 10 Terms Of His Contract With the Foreign
Bond Syndicate.

Washington, Feb l2.-rOr three hours,
today, the ways and means committee of
the House was in session. For two
hours of this time Sec. Carlisle was be-
fore it. He furnished the committee a
copy of the contract made between the
administration and the foreign syndicate
which recently agreed to purchase the
new bond issue. The contract was very
short, but at the secretary's request a
resolution was adopted by the committee
that none of the proceedings connected
with this document should be made
public.
The secretary was subjected to 1uD-
ming fire of questions from the members
present. Grosvenor of Ohio, wanted to
know why these bonds were to be sold to
the syndicate at n price 9 per cent. below
the quotation for the As. The secretary
replied that the administration had made
the best terms with the syndicate that it
could.
Being asked If an attempt had been
made to secure the sense of the country
upon it, the secretary replied in the mega
tive This precipitated a discussion in
which the attitude of the administration
was severely criticised not only by the
Republic ms, but also by certain of the
Democ ic members.
Before leaving, Sec. Carlisle suggested
that proposition be reported from tho
committee TO relieve the treasury from
redecming the national bank currency
and compelling the banks to establish an
agency for the redemption of their own
currency. The effect of this proposition
would be practically to restore the law as
it stood before 1874.
Of
ton that power be given to the admins
tration to issue 3 per cent gold bond
whenever such action became necessary to
protect the gold reserve in the treasury.
1t also provided that none of this money
should be used for the current expenses
of the government.
The resolution offered by Wilson of
West Virginia, chairman of the commit
tee, yesterday, looking to the insurance of
500, 900. 600 of bonds, payable in gold.
also came up for consideration and it.
drew from Cochran of New York. an
emphatic declaration that he would OPP
pose this proposition and any other which
looked to the indorscm- mt of the contract
with the foreign syndicate.
Read and Hopkins questioned Sec.
Carlisle at considerable length regarding
the necessity for an issue of gold bond
They asked him if he thought that such
an issue of bonds would not be used to
meet current expenses. They also asked
about the estimated receipts of the govern
ment for the remainder of the calendar
year, ard if the secretary really believed
there would be a surplus within the next
eight or 10 months.
The secretary answered these questions
frankly, and, coming back again to the
question of contracting for the sale of the
bonds, he insisted that no favoritism had
been shown; that the administration hau
consulted with leading Eastern bankers
on the subject; had made the best terms
it could and would have done better If
possible
After the secretary's withdrawal from
the committee room, the various PROPOSE
tions pending were ordered to be referr
to a subcommittee. which reported to the
full committee at 3 O'Clock this after
noon.
The Democratic members of the sub
committee are Wilson, Turner and Bryan.
Payne and Hopkins were added on the
part of the Republicans, but it was sub
sequcntly agreed that the Republican
members of the committee should select
their own representatives. After tho com
mittee adjourned the Republicans selected
Reed and Hopkins.
The sub committee to which the
different propositions were referred was
late in assembling. 1t was in session
an hour and finally agreed that bill
should be reported to the full committee,
embodying the Presidents recommends
ton for a per cent. gold bond. 1t was
provided that the gold thus received
should not be used for current expenses
and the bill repealed; that part of the
national bank law which permits national
bank notes to be redeemed in greenbacks
The question was asked IL minority
report would be made on the bill. Mr.
Reed of Maine, replied that this was not
his plan, and that he favored proposition
looking to an increase of revenue.
Mr.. Wheeler of Alabama, offered
resolution going to show that the pay
nent of these bones in gold would be an
of our time-honored policy,
and Mr.. Brya, Of Nebraska, followed
with a resolution requiring that all the
obligations of government be paid in sill
yer.
After some discussion and without any
action upon the proposition reported to
the full committee an adjournment was
taken until 10 A. NJ. tomorrow