The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-28
And Says the Treasury. Difficulties
Are Not Caused by the Deficiency
I'm Government Receipts.
ISSUE OF BONDS PROBABLE
PRESIDENT CLEVELAND MAY TAKE
ACTION THE COMING WEEK.
Gold Reserve Now Down 10 G3,sGo.-
320. Over Two Millions Having
Bsen Withdrawn Yesterday.

WASHINGTON. Dec. 27.-Secrefary Car
Isle made statement tonight I'm response
TO the following question: What. In your
opinion. viii be the effect upon the fnan-
cial situation of the tariff bill passed by
the House OF Representatives yesterday
Il had" said Mr.. Carlisle, supposed that
very few could now be found who believe
that financial difficulties were caused
by deficiency in the ordinary revenues or
the government. or that they can lie re-
lieved by increasing taxes on the COM
modities consumed by the people. These
difficulties are the necessary results Of our
financial legislation. and they cannot be
removed. even temporarily. by tariff laws
nor by any other measures which do not
directly enable the government TO procure
tn means necessary for the maintenance
c old payments"
"T you think then that the bond bin
in the House to-day will furnish
elief to the treasury
am satisfied that there is but one
permanent remedy for our financial en-
barrassments. and that is legislation pro-
viding for the retirement and cancellation
of the legal-tender notes. but. recognizing
the fact that such a measure would re-
quire time for its consideration. and for
hoped that Congress would Immediately
take the necessary steps TO assist the gov
ernment in it's efforts to procure and main
tain such a gold reserve as may be re-
quired TO remove the distrust and appre-
hension which have precipltated the pres
ent emergency. The bill reported by the
committee on ways and means falls very
far short of the requirements OF the situa-
ton, and its passage will not beneficialiy
affect the situation with which we now
have to deal Our difficulties were pro-
duced, and have been prolonged and ag-
sravated By the fear that Notwithstanding
all the efforts of fdhe administration. wr
may ultimately be unable TO procure gold
for the purpose Of redeeming our notes ana
consequently be forced to silver basis.
and this fear cannot be wholly removed
until some action is taken by Congress
clearly indicating a purpose 10 pay all our
obligations in gold when demanded by the
holders. Although there is no Substantial
reason to distrust the character Of our
notes or other securities, or TO doubt the
purpose of the government TO maintain
gold payments. the facts that there has
been no legislative declaration upon the
subject and that no legal authority exists
TO make them expressly payable In gold.
not only prevent the sale OF our bonds for
the replenishment OF the reserve upon
,ho mos. advantageous terms, but
increase the demands for gold
NV the presentation of notes at the very
times when we are least able TO meet them
without injury to our credit. IL II was not
generally expected that the three classes
of bonds already authorized by law will be
paid in gold at maturity, IL demanded, they
could not be sold except at an enormous
sacrifice. but even this general expectation
IA not sufficient to altogether satisfy In
vestors. especially in times of financial dis
turbance. About S60.000.0o0 in interest
could have been saved 10 the
people on the last issue OF bonds
IL Congress had consented to make
them expressly payable in gold. Instead OF
coin. This condition is not at all improved
by the pending bill. which still requires all
bonds to be payable in cein. as heretofore,
and confers no new authority except tns
power TO issue and sell per cent. bonds,
also payable in coin. after hve years VITA
interest payable in coin sefni-dnnualiy Al
the present time our thirty-year per cent.
bonds, with interest payable quarterly, are
selling In the markets at rates which yieiu
investors more than per cent. per annum,
and this fact should not be overlooked Ia
determining whether or not nve-year
per cent. coin bond could now be sold al
par, as the pending bill requires
What will be the effect OF the provision
prohibiting the sale OF bonds except after
public advertisements
"Assuming that sufficient amount OF
gold could be procured in that way, any
Secretary of the Treasury would prefer 10
advertise FOR bids. but IL 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
a peremptory provision requiring a public
advertisement might defeat the object or
the law and prevent apy sale.
Speaking OF the second section OF the bill.
which authorizes the issue Of certificates TO
meet deficiencies In the revenue. Secretary
Carlisle said: while there Is no necessity
at the present time for resortlng 10 the ex-
ercise of the power which that section con-
fers and may not be In the future. the Sec
retary OF the Treasury ought always 70
have the authority 10 issue and sell or use.
In the payment Of expenses. short-fime GER
tificates, or bonds. OF the character de-
scribed in the bill. Such authority ought
10 have been conferred on him long ago.
and Ii ought 10 be made permanent. instead
OF being limited TO <o,0o.0oc as IL T. by the
bill Except as TO this Limitation. the sec
of he l.f L. "A or1