Birmingham state herald., 1895-12-28
SECRETARY CARLISLE TALKS
Does Not Believe the Tariff Measure Sufficiea to Meet the Present Demand-lts
 Various Features.


 Washington, Dec. 27.-Secretary Car Iisle this evening gave to a reporter his views of the tariff measure now pending before congress.
 What in your opinion will be the effect upon the financial situation of the tariff bill passed by the house of representa- tives yesterday?' MT. Carlisle was asked.
 T had supposed that very few could now be found who believe that our finan- cial difficulties were caused by a def- ciency in the ordinary revenues of the government, or that they can be relieved by increasing taxes upon the commodities consumed by the people. These diffi-| culties are the necessary rsults of our financial lgislation, and they cannot be removed, even temporarily, by tariff laws or by any other measures which do not directly enable the government to pro- cure the means necessary for the main- tenance of gold payments.
 Do you think then that the bond bill reported in the house today will furnish any relief to the treasury"
 q am satisfied that there Is but one permanent remedy for any financial em- barrassments, and that is legislation pro- viding for the retirement and cancella- tion of the legal tender notes; but, rec ognizing the fact that such a measure WOuIQ require ClI1e IOE It's CotiSAoCie and for it's complete execution If adopted, I had hoped that congress would imme- diately take the necessary steps to assist the government In it's efforts to procure and maintain such a gold reserve as may be required to remove the distrust and apprehenSions which have precipitated the present emergency. The bill re- ported by the committee on ways and means falls very far short of the require ments of the situation, and it's passage will not beneficially affect the situation with which we now have to deal. Our difficulties were produced. and have been prolonged and aggravated by the rear that, notwithstanding all the efforts oE the administration, we may ultimately be unable to procure gold for the purpose be forced to a. silver basis. and this fear cannot be wholly removed until some ac- tion is taken by congress clearly 1nd1- eating a purpose to pay all our obl1ga- tions in gold when demanded by the holders.
 Although there is no substantial req 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 SUD ject, and no legal authority exists to make them expressly payable in gold, not only prevents the sale of our bonds Tor the repIenishment of the reserve upon the most advantageous terms, but increases the demand for gold by the presentation of notes at the very time when we are least able to meet them without injury to our credit. If it was not generally ex- pected that the three classes of bonds already authorized by law will be paid in gold at maturity, If demanded. they will not be sold except at sacrifice; but even this general impression Is not suffi7 cient to altogether satisfy investors, es7 pecially in times of financial disturbance.
 'sAbout $16,0000o0 in interest could have been saved to the people on the last issue of bonds if congress had con sented to make them expressly payable in gold instead of coin. This condition is not at all approved by the pending bill, which still requires all bonds to be payable in coin as heretofore and con fers no new authority except the power to issue and sell per cent bonds, also payable in coin after five years, with int terest payable in coin semi-annually. At the present rate our thirty-year per cent bonds with interest payable quarterly are selling in the markets at rates which yield investors more than 3 per cent per annum and this fact should not be over looked in determining whether or not five year per cent coin bond could now be sold at par as the pending bill re- quiees.'
 What will be the effect of the provis- ion prohibiting the sale of bonds except after public advertisement"
 Assuming that sufficient amount of gold could be 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 is required in order to preserve the credit of the government, and in such a case peremptory provision requiring 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 cer- tificates to meet deficiencies in the reve- nue, Secretary Carlisle said:
 "While there is no necessity at the pres ent 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 time cer- tificates or bonds, of the character de- scribed in the bill. Such authority ought to have been conferred upon him long ago. and it ought to be made permanet instead of being limited to 900 as it is by the bill. Except as to this llmita- ton the second section of the bill is good one"