Birmingham age-herald. [volume] (Birmingham, Ala.) 1890-1895, 1895-02-13
FOR TWO LONG HOURS
The House Committee on Ways
and Means
INVERTEBRATES CARLISLE
On the Bond Issue of the Adj
ministration-S Strict Secrecy
s the Word.

WASHINGTON, Feb. 12.--For three hours
today the ways and means committee Of
the house was in session. For two hours
of this time Secretary Carlisle was before
it. He furnished the committee copy ofthe
contract made between the administrat on
and the foreign syndicate which recently
agreed TO purchase the new bond issue.
The contract was very short, but at the
secretary's request q resolution was
adopted by the committee that none Of lhe
proceedings connected with this document
should be made public.
The secretary was subjected to run
ming fire OF questions from the members
present. Mr.. Grosvenor of Ohio wanted 10
know why these bonds were to be sold to
the syndicate at a price 6per cent below
the quotation for the AS. The secretary
replied that the administration had made
the best terms with the syndicate 1t could.
Being asked II an attempt bad been made
to secure the sense of the country upon it
the secretary replied in the negative. This
precipitated a discussion ,iu which The atti-
tude of the administration was severely
criticised not only by the republicans, but
by certain democratic members as well.
Before leaving Secretary Carlisle sug-
gested that proposition be reported from
the committee to relieve the secretary IRON
redeemiug 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 principally To restore the law as
it stood before 1874.
Mr.. Tarsney of Missouri offered resolu-
tion that power be given the administra-
tion to issue per cent gold bond when
ever such action became necessary to pro-
tee. the gold reserve in the treasury. 1t
fhnf nf
should be used for the current expenses OF
the government.
The resolution offered by Mr.. Wilson
OF West Virginia, the chairman OF the
ance of $4,000, 900 of bonds payable in
gold, also came up for consideration, and it
drew from Representative Bourke Cochran
OF New York an emphatic declaration that
he would oppose this proposition and any
other which looked to the Endorsement OF
the contract with the foreign syndicate.
Messrs. Reed and Hopkins between them
questioned Secretary Carlisle at con siderable
length regarding the necessity for an issu-
ance of gold bonds. Did he think that such
an issue OF bonds would stop the drain of
gold, and would not some of the money be
used to meet cure MT expenditures? They
also asked about the eStimated receipts oil
dhe government Tor the remainder OF the
calendar year, and il the secretary really
belived there would be surplus within
the next eight or ten months.
he secretary ANSWERED these questions
frankly aud coming back agaiu to the
question OF contracting for the sale OF the
bonds, he insisted that no favoritism had
been shown; that the administration had
consulted with leading eastern bankers
upon the subject; had made the best terms
itcould and would have done better II pos
sible.,
After the secretary's withdrawal from
the CONT mittee room The various PROPOSE
tions pending were ordered to be referred
TO Il su b. committee which Will report to
the full committee later in the afternoon.
The democratic members of the sub
committee are Messrs. Wilson, Turner aud
Bryan. Messrs. Payne and Hopkins were
added to the present republicans, but it
was su bsequeutly agreed that The republic
cal men, bers of the committee should Sc
il ct their own representatives. After the
committee adjourned the republicans met
Informally and selected Messrs. Reed IND
Hopkins.
La.er in the afternoon fuller details of
what occurred between Secretary Carlisle
and the committee became public. Secre-
tary Carlisle explained his reasun for ask
ing that an Injunction OF secrecy be OBJ
served regarding the terms OF the contract
on the ground that II the manner aud time
for paying Inr the bouds were made known
bankers and others might corner the gold
which the syndicate must procure to pay
Tor the bonds, aud thus greatly embarrass
them. AS matter OF consideration for the
syndicate, therefore, he preferred that
nothing should be said outside the commit
tee room r, garding he contract, although,
he added, so far as the government is
concerned there is nothing TO conceal.
Atone point in the hearing MIR. Reed
referred to the decline of gold In the'treas-
ury aud repeated the argument that has
frequently been made-tba il the green
backs were retired the gold reserve would
rot need oft replenishing. Mr.. Carlisle
then Informed the committee that under
the law OF 1874 national bank notes may be
offered at The treasury department and re-
deemed In green backs. IT was for this
reason that he subss quently suggested that
an. amendment be made to the law which
would relieve the treasury from redeeming
The national bank notes and compelling
the banks to establish an agency for the
redemption OF their currency.
No incousiderable part OF Secretary Car
isle's remarks had reference TO this pro-
vision of the uatiouai2 bank law, upon
which the members seemed to desire the
fullest Information and which he gave
them in detail.
The subcommittee to whom the differ
ent propositions were referred was late in
assembling this afternoon. They were in
session an hour, and it was finally agreed
that biIlfshouid be reported to the full
committee embcdying the presidents rec
ommendationsior per cent gold bond.
1t was also provided that the gold thus re-
ceived should not be used for current ex-
penses, and the bill also carried provision
repeating that part OF the national banklaw
which permits national bank notes to be
redeemed in green backs.
The question was asked II a minority re-
port would be made on the bill. Mr. Reed
replied that this was not his plan and that
be would favor any appropriation looking
TO an increase OF revenue.
The full committee met later, but ad.
journed until 10 O'Clock tomorrow morn
!. ing without taking action upon the report
OF the su b. committee.
WITH DUE HONORS