New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-04

Congress the Senate tWnlcn was the' N"ii''O
by the Republicans had adopted an amendment
10 the sundry Civil bill. 81 motion OF Mr.. Sher-
man authorizing the Secretary Of the Treasury
to issue 3 per cent fvc-year bonds. " necessary
- maintain the gold reserve. This amendment
met with violent opposition in the pemocrauc
House of Representatives Of the Lilo Congress
but in consequence OF the strong representations
Of Senator Carlisle, who was then a hefilDcr OF
the Finance Committee, and VINO, IL was Known
was soon t. become Secretary OF the treasury
an arrangement was made 10 overcome the opPo.
SitiOn in the House ana insure INC 'u'p'iO' W.
the amendment
Before that arrangement could be carried out
however Mr. Carlisle went 70 Lakewood 10 con-
sult with President-elect Cleveland, and on the
morning Of the day on which the motion was 10
be made in the House of Representatives 10 re-
cede from the disagreement 10 the Senate amend
mcnt a Geographic dispatch, dated at l-ake"oou
and signed by the future Secretary or the treas
ury was received by Representative breckiIi-
ridge Of Kentucky. which caused the effort 10
clOtha the Secretary with authority to issue snort
time bonds bearing a low rate OF interest 70 re,
plenish and maintain the gold reserve. II II should
become necessary. to be abandoned Wnen' tntie ,
fore the emergency did arise, In January , IoSf,
against which the Lid Congress- that had been
In almost continuous session for six months, HaI
neglected or refused to provide. the secretary VI
the Treasury found himself reduced 10 'he sineie
alternative of issuing OF the classes Oh o"I''
authorized by the Resumption Act OF lo'o' Ioi t Wv,
sole purpose Of maintaining the goId ressrtr toa
the redemption Of legal-ender notes issued oy the
TO pay current expenses of the Government.
MORE BAD FEELING AROUSED.
This action Of the Secretary of the Treasury
was sharplv challenged and severely criticised
h, leading Democrats in Congress, and an in
yes;4gation was at once begun by the committee
on the Judiciary Of the House of Representatives
Secretary Carlisle appeared before the committee
on January 25 1924, and in reply TO questions de-
cared that If the emergency should arise ne
woud use money received from the sale OF bon0s,
issued under the authority given by the Re
sumption Act, to pay current expenses author
lied by appropriation laws. He also said that
Congress could not provide against such an
emergency in the fiscal year ending June 80 1894
by means OF n revenue law, and he estimated
that the expenditures Of tnat year would exceed
thesrevenues by the sum of S7S,000,000. He also
said:
think short-time bond should be authorized
bearing low rate OF interest to be issued IN sInaI
denominatOns which think wou1 ne la,{eaH
taken by the people who nave none III nd use
banks. and the Secretary could sell mem AM ,' VS.
the proceeds In the payment OF eNpend' T ~ !,
was my recommendation on the subject Simply pc We
cause l saw II was Impossible ior OH couId he
collected in time for this fiscal year
Congress paid no heed to that recommendation
but.the Judiciary Committee promptly reported
and recommended the adoption of resolution
declaring that the Secretary OF the Ireasur! ma /
10 right to use the proceeds OF bonds issued
under the Resumption Act for the payment OF
current expenses Of the Government month
s.ter that report was made the House OF feprec
sentatives passed revenue bill the erect or
which according to leading Democrats. would
have been to cause yearly dehcit or S'oooooW
ANOTHER ISSUE OF BONDS MADE
Matters grew from bad 10 worse; at the end OF
,he fiscal year the deficit amounted to 500 00ocoo
and although the Lid Congress remained in
session two months longer. effort whatever
was made to replenish the revenues or clothe the
Secretary of the Treasury with authority 70 issue
either fve-year per cent bonds TO maintain the
gold reserve or one-year per cent bonds to meet
current expenses as he had recommended in MS
annual report for 1898. which recommendation
was repeated in his interview with the Judiciary
Committee in January. 1894, and urged in his le-
port for 1894
Before the latter report was transmitted TO
Congress. and only two and a half months after
the end of the second session Of the Lllld Con-
eress which had so sgnally and completely
failed and refused to do anything for me re!.c!
of .he Treasury, another issue OF S5o,oVooOo OF
bonds bearing per cent interest ana leuserl-
able at the pleasure of the Government Only
after the expiration Of ten years. became neces-
sary In the short space Of ten months an az
d!ton Of 800 900 600 the Understanding de0t
had been made necessary by the indifference
neglect and incapacity of the party IN power IN
Congress which had refused - do anything 70
prevent or avoid the necessity, and most or the
money obtained from the bond Sales-a0Out
sI17 200 00O-had been used before the LID Con-
gress reassembed in December 1894, 10 pay cur
rent expenditures under appropriations made by
that Congress despite the resolution favorab!y
reported bv the judiciary Committee Of the Dem
ocratic House Of Representatives, that the Sec
rotary of the Treasury had no authority or rlght
10 usa for that purpose money thus obtained.
CURRENCY TINKERING ATTEMPTED.
Immediately after the reassembling Of Congress
in December, 1894, currency unkering began in the
House Of Representatives on the lines recon-
roended bv the Secretary II the Treasury in his
annual report and approved by the president IN
his annual message of 1894 The Committee on
Banking and Currency, Of the House Of Repre-
sentatves when had been engaged for more than
q vear in futile efforts 10 frame currency meas
ure was intrusted with the duty OF framing a bill
in accordance with the new currency reform
policy Of the Administration. 50 eager was the
Democratic majority Of the committee to adopt
the recommendations Of the Executive ana 50
willing was it TO shun the responsibilities OF
task TO which II was wholly unequal that. after
listening for days to the statements and argu-
ments Of bankers. both National and state, and
students Of finance all Of whom, with single
execution opposed II and clearly demonstrated It's
imprac bility. the majority ADOPTED me cruue
iII.dicested and altogether inadequate bill. the
draft Of which had been dictated by Secretary
Carlisle TO his stenographer In single morning
and reported IL to the House without recon-
mendafon.
SO many defects were discovered IN the measure
that a substitute for IL was prepared before the
subject was brought up for consideration ana
that substitute took the place Of the original Dill
for the benefit of which n special order was pro-
posed by the Democratic majority OF the Con-
mittee on Rules-a special order which the House
refused 10 adopt So the substitute fell
The gold reserve steadily and rapidly continued
70 dvirdIe and before the erd Of January. 1872 II
had fallen SO low as 10 excite the utmost alarm
and a new issue of bonds was adVertlsed-this
time Of per cents redeemable at the pleasure Oh
The Government only after the expiration OF thlr-
~ wears on January 2S, President cleveland
again called the attention OF Congress 10 me des-
perate condition Of the National finances III d spe-
80 rr,essaen and urged the prompt enactment y