Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-13
WAYS AND MEANS.
Committee Discussion Of the Financial
Situation.
sEC'Y CARLISLE QUESTIONED
lie Furnishes q Copy Of the Com
tract Uctwccn the Admi ntstrntto"
aud the Foreign Syndicate for
Purchase Of New bonds.

Purchnsc Of New bonds.
WASHINGTON. u. C.. February T.
| For three hours today the ways All"
| Means Commit o Of the House was III
| session. For two hours OF this time
! Seer etary Carlisle was before II. lie iu'-
| nished the committee with copy OF
the contract made between tn admin
istration and the for ign syndiclte which
recently agreed TO purchase the new bond
issue The contract was very snort p"'
at tn, Sccrctary's request resolution
was adopted by the committee mat none
Of the proceedings connected with 'hls
document should be made public.
The Secretary was subjected to n run
ming fire of questions from the members
present Mr. Grosvcnor. Of Ohio. wanted
! 70 know why these bonds were to be
sold TO the syndicate at price per cent.
below the quotation for As? the Secre-
| tary replied that the administration had
made the best terms with the syndica''
| II could.
\ discussion then arose. in which the
attitude OF the administration was Sc
yerelv criticised not only by tn Repub-
ncans. but by certain OF the Democrats
as we'll
Before leaving Secretary Carlisle sug-
gested that proposition b. reported from
, the committee TO relieve the treasury
from redeeming national-hlnk currency.
and comp ling the banks TO establish an
agency for the redemption of their own
currency. The effect of this proposition
would be practically To restore the law
as it stood before 1874
RESOLUTIONS
Mr.. Tarsney. of Missouri of red a rso-
luton that power be given 10 the ADMIN
istration TO issue a per cent. gold bond
whenever such action became necessary
To protect tn. gold res rye in the Treas
ury.
1t also provided that none of this money
should lie used for the current expenses
OF the government.
The resolution offered Icy Mr. Wilson.
Of West Virginia. the chairman Of the
committee yesterday. looking 10 the is
suance Of So. 900 coo of bonds payable in
sold. also came Up FOR consideration. ana
II drew from Mr. Cochran. OF New York.
an emphatic declaration that h, 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 az
considerable length regarding the ne
Cessiiy for an issue 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 10 meet
current expenditures? They also askef
about the estimated receipts of the gov
eminent for the remainder Of the calen-
dar year and If the Secretary really b.
lieved there would h, surplus within
the next eight or ten months
The Secretary answered these ques-
tons frankly. and coming back again 10
the question of contracting for the sale
Of the bonds he insisted that no favorit-
ism had been shown; that the admins
traton had consulted with leading east
ern bankers upon the subject; had made
the best terms IL could. and would have
done better If possible.
RESOLUTIONS REFERRED.
After the Secretary's withdra wal from
the committeeman the various propo-
sitions pending were ordered 10 be re.
ferred 10 a subcommittee. which will
report to the fun committee later in the
afternoon
The Democratic members Of the sub.
committee are Mcssrs. Wilson. Turner.
and Bryan Messrs Payne and Hopkins
We're added on the part OF the Repub!i-
cans. but il was subsequently agreed that
the Republican members Of tn commit
tee should select their own representa-
tives. After the committee had adjourn
FL. the Republicans met Informally and
selected Messrs. Reed and Hopkins.
REASON FOR SECRECY.
Later in the afternoon fuller details OF
what occurred between Secretary Carlisle
ana the committee became public. Secrc-
tery Carlisle explained his reason for
asking that an injunction % secrecy be
observed regarding the terms OF the con-
tract. on the ground that II the manner
ana time Of paying for the bonds were
made known bankers and others might
corner the gold which Tho 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. although he added that - far as |
the government is concerned there is |
nothing 10 conceal.
Al one point in the hearing Mr. Reed |
referred 10 the drain Of gold from the |
Treasury. and repeated the argument that |
has frequently been made that If the |
ereenbacks were retired the gold reserve |
would not need further replenishing. Mr.. |
Carlisle then informed the committee that |
under the law of 1874 national bank notes |
may he offered at the Treasury Depart |
mont and redeemed in greenbacks. 1t WAS |
for this reason that he subsequently sug- |
Ees;ed that an amendment be made 10 |
the law which would relieve the Treasury |
from reieemng the national-bank notes |
and compel the banks to establish an |
agency for the redemption OF their cur
rcucy.
No inconsiierable part Of Secretary car
isles remarks had reference TO this pro-
vision OF the natiOnal-bank law. upon |
which the members of the committee
seemed to desire the fullest information.
and which he gave them In detail.
BILL AGREED on.
The subcommittee to whom the differ
cnt propositions were referred were late |
in assembling this afternoon. They were
in session an hour. and ii was finally |
agreed that a bin should be reported 10
the full committee. emb0dying the Pres-
dents recommendation for a 3 per cent.
gold bond 1t was also provided that the
gold thus received should not BE- used for
current expenses, and the bill also car
ried ii provision repeating that part Of |
the national-bdnk law which permits ma
notes to be redeemed in green
backs. The question was asked If Il mi
nOrty report would be made on the bill
Mr.. Reed replied that this was not his
plan, and that he would favor a PROPOSE |
ton looking to an increase of revenue
The full committee met later. but adj
iourned until 10 o'clock tomorrow, with
)ut taking action upon the report OF the