The daily morning journal and courier., 1895-02-13
CARLISLE PUT UNDER FIRE
W4s FOR TWO HOURS BEFORE THE WAYS AND MEANS COMMITTEE.

of the Contract With the Syndicate Which
 Recently Agreed to Purchase the Issue of
 New Bonds.
 Washington, Feb. 12-For three
 hours to-day the ways and means com
 mittee was in session. For two hours
 of this time Secretary Carlisle was be-
 fore it. He furnished the committee
 a copy of the contract with the syndi-
 cate which recently agreed to purchase
 the new bonds.
 The contract was very short, but at
 the secretary's request resolution was
 adopted by the committee that none
 of the proceedings connected with this 1 document should be made public. The
 secretary was subjected to a running
 fire of questions from the members
 present. MT. Grosvenor of Ohio wanted
 to know why these bonds were to be sold to the syndicate at price 6 per cent. below the quotation for the fours. The secretary replied that the adminis- tration had made the best terms pos
 sible Being asked if an attempt had | been made to secure the sense of the
 country, the secretary replied in the
 negative. This precipitated a discus sion, in which the administration was | severely criticised by democrats and
 republicans alike. Before leaving the l secretary suggested that a proposition | be reported from the committee to re- lieve the treasury from redeeming na- fi0na1 han nd | 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.
 MT. Tarsney of Missouri offered a
 resolution that power be given the ad-
 ministration to issue a per cent gold
 bond when such action became neces- sary to protect the gold reserve in the
 treasury. It also provided that none of this money should be used for the
 current expenses of the government.
 The resolution offered by MT. Wilson of West Virginia, yesterday, looking to
 the issuance of sixty-two millions of bonds payable in gold also came up
 for consideration and it drew from
 MT. Cochran of New York an emphatic
 declaration that he would oppose this proposition and any other which looked to the indorsement of the contract with the foreign syndicate.
 Messrs. Reed and Hopkins questioned Secretary Carlisle at length regarding the necessity for an issue of gold bonds They asked him if he thought that such an issue of bonds would stop the drain of gold and whether some of the money would not be used to meet current ex- penditures. They asked about the es- timated receipts of the government for the calendar year and if the secretary really believed there would be surplus within ten months.
 The secretary answered frankly and | coming back to the question of con- tracing for sale of bonds, he insisted l that no favoritism had been shown; that l the administration had consulted with | leading eastern bankers upon the sub | ject and had made the best terms it I could and would have done better if | possible. After the secretary's with | drawal the various propositions were | ordered referred to a subcommittee, | which reported to the full committee at | o'clock. The democrats are Messrs. | Wilson, Turner and Bryan. Messrs. | Payne and Hopkins were republicans. After the committee had adjourned the republicans selected Messrs. Reed and Hopkins.
 Later fuller details of what occurred | between MT. Carlisle and the commit tee came out, The contract with the syndicate covered two typewritten pages, which the secretary read. The contract was signed by J. Pierpont Nor gan of New York for J. S. Morgan of London, by August Belmont of New York for N. w. Rothschild of London, and by Secretary Carlisle. It was wit messed by Francis L. Stetson of New York, the presidents former law part ner. Secretary Carlisle asked that se- crecy be observed regarding the terms of the contract, because if the manner | and time of paying for the bonds were made known bankers and others might corner the gold which the syndicate must procure and thus embarrass it. He added that so far as the government was concerned there was nothing to 
 At one point in the hearing MT. Reed to the drain of gold from the treasury and reported the argument that has frequently been made, that if the greenbacks were retired the gold reserve would not need further replen- ishing
 MT. Carlisle then informed the com mittee that under the law of 1874 na- tional bank notes may be redeemed in It was for this reason that he subsequently suggested that an amendment be made to the law which will relieve the treasury from redeem Ing the national bank notes and com polling the banks to establish an agency l., for the redemption of their currency. A considerable part of Secretary Car isles remarks had reference to this provision, upon which the members seemed to desire the fullest informa- ion.
 The subcommittee to which the prop / ,sitions were referred was late in as- 3embling. It was in session an hour, md finally agreed that bill be report , d to the committee embodying the : recommendation for per z 'ent. gold bond. It was provided that {, he gold thus received should not be lsed for current expenses and the bill epealed that part of the national law itC hat t,Iy tn |