Birmingham state herald., 1896-06-11
MIR. cARL1sLE,s "REPLY." ]"

In response to the inquiries of the sub- committee on finance of the senate charged with the investigation of the sale of United States bonds in 1894, 1895 and 1896 Secretary Carlisle has submitted his report. Judging from the synopsis fur nished the press, the document Is meager and unsatisfactory, to say the least of 1t.
 Referring to the notorious secret bond sale, by which syndicate of New York and London bond spectators were en- abled to gobble up the whole issue at a rulnous discount and make several mill lions of dollars without mourning any risk or investing any considerable amount of money, the secretary says:
 "At the time the contract of February 8, 1895, was made the emergency was so pressing that the whole purpose of the loan would have been defeated if the re- plenishment of the reserve had been postponed for a sufficient length of time to advertise for bids, and besides 1t was exceedingly doubtful whether. under the circumstances, any sales could have been made to the general public upon as fa- rable terms as to the rate of interest as were secured by that contract"
 Granting that the emergency was so pressing, as claimed by the secretary, that the whole purpose of the loan would have been defeated by delay for a suffi- cient length of time to advertise for bids, he does not explain how it was that the president and himself, exercising auto- cratic power, as they were at the time, and have been during this entire admin istration, over the financial affairs of the government, permitted the emergency to arise to such a dangerous point. A wise and careful management of the treasury would have anticipated and prevented the development of such condition.
 Again, Mr. Carlisle's assertion that "it was exceedingly doubtful whether, under the circumstances, any sales could have been made to the general public upon as favorable terms as to the rate of interest as were secured by that contract" is not only not supported by the history of the subsequent sale of bonds to the general public, but proven to be without reason- able foundation
 At the time of the secret bond sale the credit of the government was quite as good as it was at the time bonds were sold to the general public year later and was less in debt to the amount of years deficit and the sum of the bonds sold to the bond speculators syndicate. The country was on the high tide of re- stored confidence and revived prosperity brought about by the full operation of the British gold standard, and yet when a deal was made with the great financiers they manifested such great apprehension as to the stability and credit of the na- ton that the president and secretary of the treasury are thrown into spasms of fear and actually sell the governments paper at pawn brokers discount, where as when, only a few months later, they offered the same obligations to the gen. eral public they were bid for many times over at largely advanced prices. The people had confidence in the govern ment's integrity and ability to meet it's obligations if the bond syndicate that had been protecting the national credit had not, and were willing and glad to purchase its promises to pay fair and reasonable price without dickering as to whether they were to be redeemed in gold or silver.
 The truth of the whole matter is that the president and secretary of the treas ury in that secret bond sale either volun- tarily dscredited the government or per- mitted themselves to be frightened into doing so.