The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1896-01-04
cARLlsLE.s n

tial v-etoes-Neifher Measure Calculated
to Furnish ARMAMENT Relief from Our
Ftnaneial Embarrzssments-A speclde
Promise of Gold Payraents Required.
WASHINGTON, Dec. 2s.-Secretary
Carlisle gave to a reporter of the
United Press last evening his views on
the tariff measure now pending In con-
gress:
What, In your opinion viii be the
effect upon the financial situation Of
the tariff bill passed by the house Of
representatives yesterday" Mr.. Car
Isle was asked.
81 had supposed that very few
could now be found who believe that
our financial difficulties were caused
by a deficiency in the ordinary rev
enues of the government, or that they
can be relieved by Increasing taxes
upon the commodities consumed by
the people. These difficulties are the
necessary results of our financial legis-
lation, and they cannot be removed,
even temporarily, by the tariff laws,
nor by any other measures which do
not directly enable the governmental
procure the means necessary for the
maintenance of gold payments"
do you think, then, that the bond
bill reported in the house to-day will
furnish any relief to the treasury"
81 am satisfied that there is but one
permanent remedy for our financial
embarrassments and that is legislation
providing for the retirement and can
collation. of the legal tender notes; but,
recognizing the fact that such a meas
sure would require time for its
consideration, and for its COM
plete execution, if adopted,
I had hoped that congress would i'm
mcdiately take the necessary steps to
assist the government in its efforts to
procure and maintain such a gold re-
serve as may be required to remove the
distrust and apprehension which have
precipitated the present emergency.
The bill reported by the committee
on ways and means falls very far short
of the requirements of the situation,
and its passage will not bene6-
cially affect the situation with
which we now have to 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 be unable to procure
gold for the purpose of rcdeeming our
notes and, consequently, be forced to a
silver basis, and this fear can not be
wholly removed until some action is
taken by congress clearly indicating n
purpose to pay all u 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 govern
ment to maintain gold payment, the
fact 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
prevents the sale of our bonds for the
re~plenishment of the reserve upon the
most advantageous terms, but in
creases the demand for gold by the
presentation of notes at the very
times when we are least able to meet
them without injury to our credit. II
it was not generally expected that
these three classes of bonds already
authorized by law will be paid in gold
at maturity, If demanded, they could
not be sold except at an enormous sac
rifce, but even this general expectation
is not sufficient to altogether satisfy
investors, especially in times Of finan-
cial disturbance. About Sic, OOO,0 900 in
interest could have been saved to the
people On the last issue of bonds, II
congress had consented to make them
expressly payable in gold, instead of
coin. This condition is not at all inn
proved by the pending bill, which still
requires all bonds to be payable in
coin rs heretofore, and confers no new
authority except the power to issue and
sell three per cent. bonds payable in
coin, after five years, with interest
payable in coin semi-annually. At the
present time our 30-year four-per-cent.
bonds, with interest payable quarter
ly, are selling in the markets at rates
which yield investors more than three
per cent. per annum, and this fact
should not be overlooked in determin-
hhS "hCbuCl OI AOb q AfCJCat
per cent. coin bond could now be sold
at par. as the pending bill requires"
What will be the effect of the pro-
vision prohibiting the sale of bonds ex.
cept after public advertisements
Assuming hat a sufficient amount
of gold could be procured in that way,
any secretary of the treasury would
prefer to advertise for bids, but it is
evident that there may be circum-
stances when prompt action is required
in order to preserve the credit of the
government, and in such cases a per-
emptory provision requiring a public
advertisement might defeat the object
Of the law and prevent any 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 resorting to the exer-
else of the power which that section
confers and may not be in the future,
the secretary of the treasury ought al
ways to have the authority to
issue and sell or use in the
payment of expenses, short time
certificates or bonds, of the character
l--o-.l.l - A. A,l1 Crn6 ,,k1or,+r-