The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-13
CARLISLE WITH A COMMITTEE
HE Is SUBJECTED no 4 RUNNING
FIRE OF QUESTIONS.

the Foreign Syndicate in Refer
enee 10 the New Bonds-rhe scerc-
tary Explains That Il Is the Most
Advantageous He l. Able to Make
Rt Present.
Washington. Feb. 12-For three hours
to-day the ways and means committee OF
the House was in session. For two hours
of this time Secretary Carlisle was be-
fore it. lie furnished the committee a
copy Of the contract made between the
administration and the foreign sydicate.
which recently agreed to purchase the new
bond issue The contract was very short.
but at the seeretary's request, resolu-
tlon was adopted by the committee 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 members present.
Mr.. Grosvenor of Ohio, wanted to know
why these bonds were to be sold TO the
syndicate at price g per cent. below the
quotation for the Is. The secretary re-
piled that the administration had made
the pest terms with the syndicate il could.
Being asked if an attempt had been
on it, the secretary replied in the mega
tive. This preciptated discussion, in
which the attitude of the admlnistrat on
was severely criticised. not only by the
republicans but by certain of the demo-
cratic members as well.
Before leaving, Secretary Carlisle sug-
gested that "a proposition be reported from
the committee to relieve the treasury
from redeeming the national bank cur
"a gornua11fuc~ % IaUtfe fp n
lish an agency for the redempt on of tie T
own currency. The effect of this PROPOSE
ton would be practically to restore the
law as it stood before 1874
Mr.. Tarsney OF Missouri offered a reso-
luton that power be given to the admins
tration to issue a 3 per cent gold bond
whenever 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.
The resolution offered by Mr.. Wilson OF
West Virginia, the chairman OF the COM
mittee yesterday looking to the issuance
of $62,00OOO0 of bonds payable in gold also
came up for consideration. and 1t 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
considerable length regarding the noces-
sity 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 cur
rent expenditures? They also asked about
the estimated receipts Of the government
for the r. ma nder Of the calendar year,
and If the secretary really believed there
would be a surplus within the next eight
or ten months.
The secretary answered th6R questions
frankly, and coming back again to the
question of contracting for the sale OF
the bonds, he insisted that no favorltisin
had been shown; that the administration
had consulted with leading western bank
ers upon the subject; had made the best
terms il could and would have done bet
ter if possible.
After the secretary's withdrawal from
the committee room the various PROPOSE
tions pending were ordered to be referred
to a subcommittee which was to report
TO the full committee later in the after
noon. The democratic members of the suo-
committee are Messrs. Wilson, Turner
and Bryan. Messrs. Payne and Hopkins
were ADDED on the part of the republl-
cans, but il was subsequently agreed that
the republican m embers Of the committee
should select their own representatives.
After the committee adjourned the re-
publicans met informally and selected
Messrs. Reed and Hopkins.
Later in the afternoon fuller details
of what occurred between Secretary
Carlisle and the committee became pub
lie. Secretary Carlisle explained his rea-
son for asking that an injunction Of
secrecy be observed regarding the term g
of the contract on the ground that I
the manner and time of paying for the
bonds were made known, bankers and
others might corner the gold which the
syndicate must procure to pay for the
bonds and thus greatly cmbarrass them.
AS a matter Of consideration for the
syndicate therefore, he preferred that
nothing be said outside the committee
room regarding the contract, al hough
he added that so far as the government
is concerned, there is nothing to con cal.
At one point in the hear ng Mr.. Reed
referred TO the dram OF gold from the
treasury and repeated Lpe argument that
has freauently been Made that II the
greenbacks were ret red the god reserve
would not need further replenish.ng. Mr..
Carlisle, then informed the committee
that under the law Of 1874 national bank
notes may be offered at the treasury de-
partment and redeemed in greenbacks.
IL was for this reason that he subse-
ouentlv suggested that an amendment
he made to the law which VIII relieve The
treasury from redeeming the national
hank notes and compelling the banks TO
establish an agency for the redemption
of their currency. No moons derable
mart of Secretary Carlisle's remarks had
reference 10 this provision of the ma
tional bank law, upon which the membtrs
seemed to desire the fullest Information
and which he gave them IN detail.
The sub-committeTAo whom the differ
emf propositions wefDreferred, were late
In assembling this afternoon. They were
In session an hour, and it was finally
agreed that a bill should be reported tc
ne fun committee. embodying the Pres
dents recommendation for 3 per cent
1old bond 1t was also provided that the
9old thus received should not be used
for current expenses, ana the bill also
carried a provision repeating that part
of the national bank law which permits
national bank notes TO be redeemed IN
greenbacks.
The question was asked II minority
report would be made on the bin. Mr.
reed replied that this was not his plan
and that he would favor a proposition
looking to an increase Of the revenue.
The full Mnmittee met later, but al
iourned - 10 o'clock tomorrow with.
out taking action upon the report Of the
subcommittee.