The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-02-13
MR.. CARLISLE CATECHISED
Secretary Before the Ways and
Means Committee of the House.
ADMINISTRATIONS CRITICISED
Democrats as Wen as Republicans Dis
euss the Attitude of the Administra'
tion on the Financial Question.
Cockran's objections.


By the United Press.
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 com
mittee Il copy of the contract made be-
tween the administration and the Tor
eign syndicate which recently agreed to
purchase the new bond issue. The con-
tract was very short, but at the secre-
tary's request resolution was adopted
that none of the proceedings connected
with this document should be made
public.
The secretary was subjected to a
running fire of questions from the men,
bers present. Mr.. Grosvenor wanted
to know why these bonds We're to be
sold to the syndicate at Il price 6 per
cent. below the quotation for the As.
The secretary replied that the admins
tration had made the best terms with
the syndicate it could. Being asked If
an attempt had been made to secure
the sense of the country upon it the
secretary replied in the negative.
This precipitateda a discussion in which
the attitude of the administration was
severely criticised not only by the Re
publicans, but by certain of the DEM
ocratic members as well. Before leav-
ing, Secretary Carlisle suggested that Il
proposition be reported from the COM
mittee to relieve the treasury from re-
deeming national bank currency and
compelling the banks to establish an
agency for the redemption of their own
currency. The effect of this PROPOSE
tion would be practically to restore the
law as ii stood before 1874
Mr.. Tarsney offered a resolution that
power be given to the administration
to issue per cent. gold bond when
ever such action became necessary to
protect the gold reserve in the treasury.
1t also provided that none of this money
should be used for the current expenses
/ of the government.
Mr.. Cochran Objects
The resolution offered by Mr.. Wilson
yesterday, looking to the issuance of
S6ZOOO,OOO OF bonds, payable in gold, also
came up for consideration and 1t drew
from Mr.. Bourke Cochran, of New
York, an emphatic declaration that he
would oppose this proposition and any
other which looked to the Endorsement
df the contract With the foreign syndi-
cate.
Messrs. Reed and Hopkins questioned
Secretary Carlisle at considerable
| length regarding the necessity 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 to meet current eX-
| penditures?
They also asked about the estimated
receipts of the government for the re-
mainder of the calendar year and if the
secretary really believed there would
be a surplus within the next eight OF
| ten months. The secretary answered
the questions frankly. and coming back
again to the question Of contracting fol-
the sale of bonds he insisted that nc
| favOritism had been shown: that the
| administration had consulted with
! leading bankers upon the subject had
made the best terms it could, and
would have done better If possible.
After the secretarys Withdrawal
from the committee room the various
propositions pending were ordered t.
be referred to a subcommittee, which
reported to the full committee at
o'clock this afternoon. The Democratic
members of the subcommittee are
Messrs. Wilson, Turner and Bryan
Messrs. Payne and Hopkins were added
on the part of the Republicans. but II
was subsequently agreed that the Re
publican members should select theii
own representatives. After the com
mittee adjourned the Republicans me
informally and selected Messrs. Reet
and Hopkins.
The Reason for Secrecy.
Later in the afternoon fuller details
Carlisle in the committee became pub
lie. The contract with the syndicate
covered two typewriter pages whicl
the secretary read to the committee
The contract was signed by j. Pierpon
Morgan, of New York. for j. S. Nor
gan of London; by August Belmont, o
New York, for n. w. Rothschild. o
London. and by Secretary Carlisle, I
was witnessed by Francis L. Stetson. o
New York, the presidents former Law
partner.
Secretary Carlisle explained his rea
son for asking that an injunction o
secrecy be observed regarding the term
of the contract ON the ground that !
the manner and time of paying for tn
bonds were made known. bankers an,
others might corner the gold which tn
syndicate must procure to pay for tn
bonds and thus greatly embarras
them.