The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-01-04
ONLY ONE REMEDY.
Secretary Carlisle Talks on Financial
situation.

Washington, Dec. so. - Secretary
Carlisle gave TO a reporter his views on
the tariff measure now pending in con-
gress. He said:
Il had supposed that very few could
now DO found who believe that our lnan-
GIL difficulties were caused by "a deficiency
In the ordinary revenues OF the governs
nient, or that they can be relieved by In
croasing taxes upon the commodities con-
sumed by the people. These difficulties are
the necessary results OF our financial legis-
lation. and they cannot be removed. even
temporarily. by tarifr laws nor by any 9TH
er measures which do not directly enable
tho government to procure the racnns nee
essary for the maintenance az gold pay
ments."
do you think then that the bond bill
reported In the house will furnish any re-
licf 10 the treasury"
II am satisfied that there Is hut one per-
manent remedy for our financial embar-
easements. and that IS legislation rrovid-
Ing for the retirement and cancellation OF
the legal tender notes. but. recognising
the fact that such measure would re-
qusre time for its consideration, and for
its complete execution II adopted. had
hoped that congress would Immediately
take the necessary steps 70 assist the gov
eminent In It's efforts 10 procure and MAIN
tain such n gold reserve as may be re-
required 10 remove the dlstrust and APP
prohenslon which have prccipltnted the
present emergency. The bill reported by
the committee on ways and means falls
very far short OF the requirements % tie
situation, and Its passage win not benc-
fcIally affect the situation with which We
now have 70 deal.
"Our difficulties were produced and have
been prolonged and aggravated by the
fear that. Notwithstanding all the efforts
OF the administration, we may ultimately
ho tn nj N fnr tlas.r "a,
OF redeaming our notes, and consequently
be forced to n silver basis. and this fear
cannot be wholly removed until some ac-
ton Ia taken by congress clearly indicat-
ing a purpose to pay all our obligations
IN gold when demanded by the holders.
Although there II no substantial reason
to distrust the character OF our notes or
other securitlcs, or TO doubt the purpose
or the government to maintain gold pay
ment, the fact that there has been no
legislative declaration upon the subject
and that no legal authority exists 10 make
them expressly payable In gold, not only
prevents the sale OF our bonds for the re-
Punishment OF the reserve upon the most
advantageous terms. but Increases the
demands for gold by the presentation OF
notes nt the.very times when we are least
able TO meet them without injury TO our
credit
III IL was not generally expected that the
three classes OF bonds already authorized
by law will be- paid In gold at maturity. II
demanded. they could not be sold except
at an enormous sacrifice. but even this gem
cral expectation IL not sufficient 10 alto
gether satisfy tngestc.s especially in times
OF financial disturbance About SIG 100000
I'm interest could have been saved TO the
people on the last issue Of bonds II congress
had consented 10 make them expressly pay
able In gold, instead or coin. This condi-
tion Ii not at all improved by the pending
bill, which still requires all bonds TO be
payable In coin as heretofore. and conferA
no new authority except the power TO Issue
AM sell three per cent. bonds. also payable
I'm coin. after Ave years. with interest pay
allie I'm coin semi-annualiy. At the pres
eut time our 30 year four per cont. bonds.
with interest payable quarterly, are sell
ins In the markets at rates which yield In
vostors more than three per cent. per an
mum, and this fact should not DO over
looked In determining whether or not a
five-year threc-per cent. coin bond could
now be sold at par. as the pencing bin re-
Qulres:
bill, which authorizes tho issue OF GER
tincates 10 meet deficiencies In the rev.
cnue, Secretary Carlisle Said while
there n no necessity at tho present time
for resorting TO the exerciee CT the power
which that section confers. and may not
be ga future. the secretary OF the treasury
ought always TO have the authority TO
issue and sell or use In tho payment OF ex-
penses. short-timc certificates, or bonds,
OF the character described In the bill.
Such authority ought to have been con-
fcrred upon him a long time ago and II
ought 20 be made permanent instead OF be-
ing limited TO &b0O00.000 as IL Is by tho
bill Except as 20 this limitation, the Sec
ond section OF the bill II good one