The herald., 1895-12-31

thing TO nave a IeliOW Step III duo ou'
away the very ground from under
your feet by doing what you intended,
and good deal more, too.
Secretary Carlisle On he House Tariff Bill
WASHINGTON. Dee. 27.-The cabinet
meeting today and tonight was, in many
respects one OF the most important held in
the viii te house since the war. Tho inter-
ests involved were so stupendous that most
of the cabinet officers went without their
dinners. and it was not until very late
hour that Var. Carlisle gave out the follow
ing official Interview:
"Wliat, in your opinion" he was asked,
twill be the effect upon tho financial situa-
ton of the tariff bill passed by the house of
representatives yesterday"
Il had supposed that very few could
now be found who believe that our finan-
cial difficulties were caused by deficiency
in the ordinary revenues OF the govern
ment, or that they could be relieved by IN
creasing taxes on commodities consumed
by the people. These difficulties are the
necessary results of our financial legisla-
ton, and they cannot be removed, even
temporarily. by tariff laws. nor by any
other measure which does not directly Ell
able the government 10 procure the means
necessary for the maintenance OF gold pay
ments.
"Do you think, then. that the bond bill
reported in the house today will furnish
any relief to the treasury"
II am satisfied there is but one perma-
nent remedy for our financial embagrass-
ments. and that Is legislation providing TOR
the retirement and cancellation of legal
tender notes, but recognizing The fact that
such "A measure would require time for its
consideration and for its complete eXecu-
ton if adopted. | had hoped that congress
would Immediately take the necessary
steps to assist-the government in its Efforts
TO procure and maintain such gold re-
serve as may he required to remove the
distrust and apprehension which have pre-
cpitated the present emergency.
The bi reported by the committee on
ways and means tails very far short of the
requirements of the situation and its pass
age will not beneiicially effect the situa-
ton which which we now have to deal. Our
difficulties were produced and have been
prolonged and aggravated by the fear that,
Notwithstanding all the efforts of the adj
ministration, we may ultimately be unable
to procure gold for the purpose of redeem
ing our notes, and CONSEQUENTLY be forced
to silver basis, and this fear cannot be
wholly removed until some action Is taken
by congress clearly indicating its purpose
to pay ali our obligations in gold when de-
manded by the holders.
Although there is no substantial reason
to distrust the character of our notes or
other securities. or to doubt the purpose of
the government 10 MAINTAIN gold pay
ments. the fact that there has been no leg
islative declaration upon the subject and
that no legal authority exists to make them
expressly payable i'll gold. not only pre-
vents the sale of cur bonds for the replen-
ishment of the reserve upon the most adj
vantageous terms, but increases the de-
mand for gold by the presentation of notes
at the very times when We are least able to
meet them without injury to orr credit. Ii
it was rot generally expected that the
three classes OF bonds already authorized
by law would be paid in gold at maturity,
If demanded, they could not be sold except
at an enormous sacrifice. but even this
general expectation is not sufficient TO alto
getAer satisfy investors. especially in
time of financial disturbances. About
sixteen millions of dollars in in
terest could have been saved to the people
on the last issue of bonds if congress had
consented to make them expressly payable
in goiu. instead of coin.
This condition is not at all improved by
the pending bill. which still requires all
bonds to be payable in coin, as heretoio ore,
and confcrs no new authority except the
power to issue and sell j per cent. bonds,
also payable in coin, after live years, with
interest payable in coin seni-annually. At
the present time, our thirty year, per
cent. bonds, with interesr payable quarter
", are selling in the market at the rate
which yields investors more than 3 per
cent. per annum. and this fact should not
be overlooked in determining whether or
not a five year per cent. coin bond could
now be sold at par, as the pending bill re-
qures.'
"What will be the effect of the provision
prohibiting the sale of bonds except after
public advertisement:
saiIIpip,r that n sufficient amount of
gold could re procured in that way, any
secretary of the treasury would prefer to
advertise for bids, but it is evident that
there may be circumstances when prompt
action 10 required in order to preserve the
credit of the government, and in such
cases a peremptory provision requiring a
public advertisement might defeat the OBJ
ject of the law and prevent any SAFE"
Speaking of the section of the bill which
authorizes issue of certificates to meet de.
ficiencies in the revenue, Secretary Carlisle
said: "Whiie there is no necessity at pres
ent for resorting to the exercise OF the
power which that section confers, and may
not be in the future the secretary of the
treasury ought always to have authority &c
issue and sell or use in payment of ex
penses short-time certificates, or bonds OF
the character described in the bill. Such
authority ought to have been conferred
upon him long ago. and it ought to be
|
as it is by the bill. Except as to this limi
tation, the second section of the bill Is q
good one"
Later the secretary added: ''Ii the stat
utes under which we have been issuing
/ bonds had provided for gold bonds instead
of bonds payable in coin the government
could have saved $4,000, 900 on the re
cent issues in the difference that wouC
have been offered in premiums. Now the
proposed measure presented by the ways
and means committee does not relieve The
government of the stumbling block. W.
can, under the present law, secure suct
! premiums OH an issue of thiriy-year pei
! cent bonds as will net as low rate ulti
ma;ely as any issue under the proposed
| short term, low rate bond provision of thu
ways and means committee. II the pro
/ posed change in the statutes will provide
/ for the Issuance of gold bonds the govern
! ment will be enabled TO proceed will
arrangements for an issue upon a basi
that will save millions over and above an.
result that might be obtained under thu
necessity OF a longer higher-ra;e issue."-
| julius Chambers i'll the New York journal
Every spoonful of DR.. Prices Bakin
| Powder does perfect work Of leavening.
True and Intelligent Patriotism
The patriotism of the intelligent sort i