The Providence news. (Providence [R.I.]) 1891-1906, 1896-06-10
Secretary Carlisle Makes
An Explanation.
He Declares That There Was
No Other Course Open.
For the Preservation of Credit Of
National Government.

Washington. June 10.-Secretary Car.
isles reply to the subcommittee of the
senate finance committee. charged with
the investigation of the sale OF United
States bonds during the years 1894. 1896
and 1896. was made public yesterday.
The statement is dated June 1. Review
ing the conditions which led to the bond
issues. the secretary says:
Largely on account Of apprehensions
In this country and abroad as TO the
ability of the government 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 reached the unpre-
cedented 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all OF which was withdrawn from the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 March 7, 1893.
when 1 assumed control OF this depart
ment, the Withdrawals OF gold from the
treasury amounted TO $35, ,563. .093, and
during the eight months next succeed
ing that date the Withdrawals amounted
TO $50 1877 ,2l9. while the exports amounted
to s39,9e9.529. These Withdrawals and
shipments began on q large scale I'm
June. 1892. and continued with only short
periods of intermission until the close OF
the fiscal year 1893. On Dec. 81, 1892, the
free gold in the treasury amounted TO
si21, ,266, ,662. 20, and on Feb. 2S IL had fallen
to Sl03 ,21891 The reserve fund
would have fallen below 800, 100000 be-
fore March /, 1893. IL my predecessor in
Office had not effected arrangements III
January and February by which the
o n0n t..e
cured from certain bankers at New York
In exchange for United States notes and
otherwise.
Notwithstanding the most strenu-
pus efforts by the department to main
tain S100 900, 900 reserve intact. the pres
entation of notes for redemption to pro-
cure gold for shipment abroad continued
10 such an extent that on April %, 1893,
for the first time since the fund was
established, IL became necessary to use
a part of II for redemption purposes, and
1t was reduced to $95.432, 1851. and was
reduced on Jan. IL, 1894. to s69. .757, ,s24.
The cash balance then in the treasury,
excluding the current liabilities. but in
cluding the gold reserve and all sub
sidiary and minor coin, was only $685.
e61 ,402. Very little gold was being re-
ceived. owing to dues to the government,
and 1t was therefore impossible 10 in
crease the reserve without resorting to
the issue and sale of bonds, under the
authority conferred by the resumption
act. The call Of Jan. IL. 1884. for an issue
of s5O.OOo,0Oo. brought to the treasury
s5s.600.9l7.
ION March 6. 1894. after this sale had
been completed, the free gold amounted
TO si07 .446S02. and after falling TO $751;
1895 Aug. z. 1894 1t was slowly replen-
ished by voluntary exchanges OF gold
coin for United states yetes and other
currency by the banks. and by small re-
ceipts of gold in the payment Of dues to
the government. until Nov. Ia. 1894,
when 1t reached SCI, ,S7S,374. In the mean
time the frequent presentation Of notes
for redemption In gold by individuals
and institutions not desiring IL for ex-