The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-28
GREENBACKS WILL HAVE TO GO
CARLISLE POINTS OUT THE ONLY
WAY TO SAVE OUR CREDIT.

The Bond Bill Reported by the Com
mfttee on Ways and Means Falls
short of the Requirements of the
SituatiOn-The Pending Tari6 Leg
isIation Absolutely superhuous-No
Certainty THAT "A New Issue of Coin
bonds VIII Bring Par.
Washington, Dec. 27.-Secretary Car
Isle this evening gave to reporter his
views of the tariff measure now pend
ing before congress.
What, in your opinion. viii be the ef-
feet upon the financial situation OF the
tariff bill passed by the House OF Repre-
sentatives yesterday" Mr.. Carlisle was
asked.
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 can be relieved by in
creasing taxes upon the commodities con-
sumed by the people. These difficulties
are the necessary results of our financial
legislation, and they cannot be removed
even temporarily, by tariff laws, or by any
other measures which do not directly en-
able the government to procure the means
necessary for the maintenance of gold
payments"
DO you think. then. that the bond bill
reported in the House to-day will furn-
ish any relief to the treasury"
Il am satisfied that there is but one
permanent remedy for our financial en-
barrassment, and that is legislation pro-
viding for the retiUement and cancellation
Of the legal tender notes, but recognize
ing the fact that such a measure would
require time for its consideration and for
hoped that congress would Immediately
take the necessary steps to assist the gov
ernment in dts efforts to procure and
maintain such gold reserve as may be
required to remove the distrust and APP
prehension which have precipitated the
present emergency.
ways and means falls very far short Of
the requirements of the situation, and its
passage will not beneficially af-
feet the situation with which we
ties were produced, and have been pro-
longed and aggravated by the fear that,
Notwithstanding all the efforts Of the ad-
ministration we may ultimately be unable
to procure gold for the purpose of re-
deemdng our notes and consequently be
forced to a silver basis, and this fear can
not be wholly removed until some action
is taken by congress clearly indicating
purpose to pay all our obligations in
gold when demanded by the holders.
Although there Is no substantial rea-
son to distrust the character of our notes
or other securities, or to doubt the pur-
pose of the government TO maintain gold
payments, the fact that there has been
no legislative declaration upon the sub
ject, and that no legal authority exists
to make them expressly payable in gold,
not only prevents the sale of our bonds
for the replenishment of the reserve upon
the most advantageous terms, but in
crease the demand for gold by the presen-
fat frT. nf a,ta nt f1rx fff,1Aaa laAr
we are least able to meet them without
injury to our credit.
"If it was not generally expected that
the classes of bonds already authorized
by law VIII be paid In gold at maturity, II
demanded, they will not now be sold ex-
cept at an enormous sacrifice, but even
this general expectation Is not sufficient
to altogether satisfy investors, especially
In times of financial disturbance.
about Sle.o00000 in interest could have
been saved to the people on the last issue
of bonds IL congress had consented to
make them expressly payable In gold in
stead of coin. This condition Is not at all
improved by the pending bill. which still
requires ali bonds TO be payable in coin
as heretofore, and confers no new au-
thority except the power to issue and sell
3 per cent. bonds, also payable in coin,
in coin semi-annually. At the present
time our thirty-year per cent bonds,
with interest payable quarterly, are SELL
Ing in the market at rates which yield
investors more than 3 per cent. per an
mum. and this fact should not be over
looked in determining whether or not a
five-year per cent coin bond could now
be sold at par, as the pending bill re-
quires."
What will be the effect of the provis-
ion prohibiting the sale of bonds except
after public advertisement"
Assuming that a sufficient amount of
gold could be procured In that way, any
Secretary of the Treasury would prefer
to advertise for bids but 1t is evident that
there may be circumstances when prompt
action is required in order to preserve the
credit of the government, and in such
cases, pre-emptory provision requiring
a public advertisement might defeat the
object of the law and prevent any sale"
Speaking of the second section of the
bill, which authorizes the issue of certif-
Gates to meet deficiencies in the revenue,
Secretary Carlisle said:
while there Is no necessity at the
present time for resorting to the exercise
Of the power which that section confers,
and may not be in the future the Secre-
tary of the Treasury ought always to have
the authority to issue and sell, or use in
the payment of expenses, short-timed GER
tffcates or bonds Of the character de-
scribed in the bill. Such authority ought
to have been conferred upon him long ago,
and 1t ought to be made permanent In
stead of being limited to 600, as 1t
Is by the bill. Except as TO this limita-
tion, the second section OF the bill is a
good one"
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