New-York tribune., 1895-02-13
MIR. CARLISLE EXPLAINS.
HE SHOWS THE COMMITTEE HIS CON
TRACT wIfH THE BOND SYNDICATE
ITS TERMS NOT MADE PuBIrC-A BILL AUTHOR
IzINo PER CENT BOND ISSUE MAY BE
REPORTED TO THE HOUSE TO-DAY
SUGGESTED CHANGES IN THE
NATIONAL BANKING Law
FREE COINAGE BILL
~ THE SENATE.
fpY TELEGRAPH TO THE TRIBUNE


IN THE SENATE.
rpy TELEGRAPH TO TRIBUNE.
Washington. Feb. 12-The comedy of financial
legislation under Democratic management contin-
ues TO drag along at the Capitol. a new turn was
given to-day To the absurdities or the situation ny
the decision OF the Democratic members OF 'he
Senate Finance Committee to report bill for the
unrestricted coinage OF silver This piece OF pravado
was determined upon at hurried conference last
evening preciptated by the natural fear that the
Republican Senators might. by joining forces win
Mr. German arrange for the passage or per cent
bond and an exchequer note rider on one OF the
pending appropriation bills. thus leaving 'he IN
nationist and free silver elements when cohtro
the Democratic side without either legislative
programme or legislative responsibility TIL late
hour last night 1t had been the intention OF Mr.
Voorhees, not 10 call meeting Of the Finance
Committee for this morning. but the news Whicn
reached the leaders Of the committee that the Re-
publican Senators at yesterdays conference had
shown a decided inclination TO support the bond
and ex,honuer note scheme to which Mr.. German
had also given his assent. forced a sudden change
OF plan and notices hastily dispatched to
call the committee together
Al a preliminary caucus held hy tho Democratic
members OF the committee this morning. Mr.. Nc
Pherson alone being absent 1t was decided to
abandon all the compromises In the way OF cur
rcncy and financial legislation offered by Mr.. Vest.
MIR Jones OF Arkansas. Mr.. voorhees, and others.
and to report a simple free coinage BILL the Gov
orurncnt 10 tskc a seigniorage the difference be-
tween the coin value OF the bullion and Its market
value This programme was carried through with
out difficulty In the full committee. Mr.. Jones' OF
Nevada. who figures as Populist. joining
with i've Democratic Senators. Messrs. Voorhees,
Harris Vest. Jones. OF Arkansas, and White, to
report plain free silver measure. Mr.. Mcpherson.
usual voted with the four Republicans. Messrs
Morrill,. sherman. Allison and Aldrich, against a
favorable report.
The OF the bill follows:
That from and after the passage OF this act the
Secretary OF the Treasury IL hereby authorized
and directed to receive at any United States mint.
from any citizen OF the United States. silver bull
lion OF standard hneness and coin the same into
on fr III. . oS Si s beCns to he
states and shall be the difference between the
bullion In New-York the day tho deposit Is
made and all expenditures for coinage done under
seishoras and the Sc secse,ary r" o the treasury
standard silver dollars equal In amount to the
price thereof. aforesaid. and whenever the said
the rreasupv p"srtiaca,es may be issued thereon.
In the manner now provided by law.
This action OF the committee breaks definitely the
deadlock in which 4, has been held for two months
and throws the responsibility FOR any currency or
financial legislation upon the Senate itself II also
greatly lessons tho chances OF the success OF any
rider" tor the relief OF the Treasury such Mr..
German and the Republicans have hoped to put
OF tho appropriation bills. Apparently
nothing Will he done In the Senate either in the
way Of authorizing per cent bond issue or OF sup
plying funds 20 meet the current Treasury deficen
cles IL IL equally certain that Free Coinage bill
cannot be passed. that the decision OF the Demo
cratic leaders to report and champion such bill
IS significant only as open and arrogant defiance
OF the President and reputation from a party
poln, OF view OF his whole financial programme and
policy.
In the' House Mr. Wilson continued his pathetic
and dcsp0ndent Efforts TO force through the Ways
and Means Committee some approving
the Presidents recent negotiations for a new issue
Of bords Mr. Wilson seems to have given up hope
OF inducing the House OF Representatives. TO acccp;
the ten-day option offered by the foreign bond
syndicate. and his chief ambition now is 70 commit
the Democratic management In the popular branch
to some more less academic Endorsement OF Mr..
Cleveland's present financial programme. The Com
mittce OF Ways and Means g.; again n great part
OF the day. but achieved nohias substantial beyond
embarrassing the Secretary OF the Treasury by pro-
tracing inquiry into the details OF the negotiations
for the bonds.
Mr.. Carlisle furnished the committee copy
OF the contract made between the Administration
and the syndicate. II covered two typewriter
pages and was signed by J. Perpont Morgan. OF
New-york for J. s. Morgan OF London: by August
Belmont. OF New-York for y. w. Rothschild. OF
London. and by Secretary Carlisle II was wilt
Presidents former law partner Secretary Carlisle
explained his reason for asking that IN Injunction
OF secrecy be observed regarding the terms or the
contract the ground that II the manner and
time OF paying for the bonds made known
bankers and others might corner the gold, which
the syndicate must procure TO pay for the bonds,
and thus greatly embarrass them. As "A matter
OF consideration for the syndicate therefore. he
preferred that nothing should be said outside the
committee-room regarding the contract aithough
he added that, so far as the 'ioVernment ~ con-
cerned. there IL nothing to conceal.
questions. Mr. Grosvcnor OF Ohio wanted to know
why these bonds be sold to the syndicate
AT a price per cent below the quotation for the As
The Secretary replied that the Administration had
made the best terms with the syndicate II could.
Being asked II an attempt had been made 10 Sc
cure the sense OF the countrS upon H. the Secre-
cussion In which the Administration was severely
criticised. not only by the Republicans. but by
certain OF the Democratic members as well.
At point the hearing Mr.. Reed referred To
the drain OF gold from the Treasury, and repeated
the argument that has frequently been made that
II the greenbacks were retired the gold reserve
then infdttned the committee that under the law or
1874 National bank notes may be offered at the
Treasury Department and redeemed In greenbacks.
IL was for this reason that he subsequently sug-
gested that an amendment be made 20 the law
which will relieve the Treasury from redeeming the
National bank notes AMI compelling the banks 10
rency. No inconsiderable part or Secretary Car.
Isles remarks had reference 20 this provision OF
the National Banking law, upon which the mem;
bers seemed desire the fullest Information, ana
which he gave them In detail
The resolution offered by Mr. Wilson. OF West
Virginia. the chairman OF the committee. yestcr-
payable I'm gold. also came up for consldera tion.
and II drew from Representative Bourke Cochran.
OF New York emphatic declaration that he
would oppose this proposition and any other