The record-union., 1896-06-10
Charged With the Investigation of the
Subject.
The Sale of the Bonds, i'm the Opinion
of the Secretary, Were Necessary
for the Preservation of the Credit
of the Government and Security of
the Business interests of the
People, and That They ACCOM-
plished Those Results.

plished Those Results.
| WASHINGTON, June 9.-The SEN
| ate Committee on Finance this morn
ing discussed the proposed investiga-
! ton of the sale of bonds, which is
/ ordered under the Senate resolution,
and finally decided that the investi-
cation should be open to the public.
| The reply Of Secretary Carlisle to
| the inquiries of the committee charged
| with the investigation of the sale of
bonds of the United States in the years
! 1S94-o-6 was made public this evening
! The Secretary traces the beginning of
| the sale back to the closing year of
| President Harrison's Administration,
and brings the history down to Cleve-
/ lands first issue of bonds in the follow
| ing statement:
! Largely on account of apprehen-
| sion in this country and abroad as to
| the ability of the Government of the
| United States to continue the current
redemption of its notes in gold coin,
| and maintain the parity of the two
metals, the exports of gold during the
| fiscal year 1893, which closed June 80,
| 1888, reached the unprecedented
amount of S10S, $50, S44, nearly all of
which was withdrawn from the public
| treasury by the presentation of notes
for redemption. During the three
months next preceding the 7th day of
| March, 1893, when 1 assumed control
| of this department, the withdrawals
OF gold from the treasury amounted to
$50, ,563, ,093, while the exports amounted
to S39, 100, ,730, and during the eight
months next succeeding that date the
! Withdrawals amounted to $50, 1871, ,219,
while the exports amounted to S39.-
| 599,529, showing an excess of with
drawals over exports to the amount of
| $40, ,237, $50.
| These withdrawals and shipments
began on large scale in June 1893
the last month of the fiscal year 1892
and continued with only short periods
| CT intermission until the close of the
| fiscal year 1893. On the 31st day Of
| December, 1892, the free gold in the
treasury amounted to S121 ,266, ,662 %,
1 but by January 81, 1893, it had been re-
duced to $10S, 1S1, ,713 50, and on the
18th of February it had fallen to S103,-
2S4,21S 81, or only So, 3,2S4 ,21S 91 in ex-
cess of the lawful reserve. The reserve
| would have fallen below 100000 coo
1 pNAciV~ -sASN1 Sli L, IOt.b IL my predecessor
IN office had not effected ARRANGEMENTS
IN January and February by which the
sum of $S,250,000 in gold was procured
| from certain bankers in New York in
exchange for United States notes and
otherwise.
During each of the months Of No
|. vember and December, 1892, and JAM
uary and February, 1893, the expendi-
| lures exceeded the receipts, the total
deficiency for the four months being
/ So,S10,34S 50, and on the 7th day of
| March, 1873 the availab BILE cash balance
III the treasury was 1924 ,G13,S10. which
/ includes S100,9S2, 40 in gold, or S9S2,-
/ 41c in excess of the lawful reserve: but
| by making exchange of currency for
/ gold with the banks in different parts
| of the country the amount was increas-
! cd to S101, ,462, $50 on the 25th of that
| month, although large Withdrawals
were made in the interval.
| Notwithstanding the most strenu-
| Gus efforts by the department to main
| tain the $780, 100000 reserve intact the
| presentation of notes for redemption to
| procure gold for shipment abroad con-
| tirued to such an extent that on the
22d day of April, 1893, for the first time
| since the fund was established it be-
! came necessary to use a part of it for
! redemption purposes, and it was re-
| duced to S93, 49,, ,357 but it was after
/ wards increased by exchanges of other
/ forms Of currency for gold, so that on
| the 10th day of August it had been fully
restored, and there was on hand S103,-
| GS3,290 in free gold; but by December
| so, 1883, it had fallen to $50, ,S61 601 IS,
! and was reduced on the 18th day of
] To- Ssen
! S24.
THE cash balance then in the treas
uyy, excluding the current liabilities.
| but including the gold reserve and all
subsidiary and minor coin, was only
SS3, ,961 ,402 Very little gold was be-
ing received on account of dues to the
| Government, and it was therefore i'm
possible to increase the reserve without
resorting to the issue and sale of bonds
under the authority conferred by the
Act of January IA, 1875, commonly
known as the Resumption Act At this
date there was no free gold coin in the
treasury, all the coin on hand being
covered by outstanding certificates The
| 500, ,557 ,S04 then held as free gold was
in the form OF bullion
Quoting the provisions of the law
/ w hiSii eiulllOllLSI ILLS COURSE TO De
| taken, Mr.. Carlisle proceeds to state
that on the 18th of January, 1894, bids
Were invited for S50,000,O0O Of 5 per
| cent. bonds on not to exceed 3 per
cent. basis. The proceeds of this sale
amounted to the sum of $500, ,917 6:a},
which was paid into the treasury in
gold coin and gold certificates
"On the 9th day of March, 1894, after
! this sale had been completed, the free
gold in the treasury amounted to the
sum of S107. .446 500, and after falling to
so, 1S9. 800 on the 7th day of August,
1884, it was slowly replenished by vol
untary exchanges of gold coin for
United States notes and other cur
rency by the banks, and by small re-
ceipts of gold in the payment of du-
ties to the Government, until the 4th
day of November, 1894, when it reached
/ the sum of SCI ,S1S,374
In the meantime, however, the fire.
quent presentation of notes for redemp-
| tion in gold by individuals and insti-
| tutions not desiring it for export clearly