River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1896-01-02
ONLY ONE REMEDY.
Secretary Carlisle Talks on Financial
Situation.


Washington, Dec. so. = Secretary
Carlisle gave to reporter his views on
the tariff measure now pending in con-
gress. He said:
mad supposed that very few could
new be found who believe thar our finan-
ci-i diri1cuiffes were caused by a aeficienc'
IN the ordinary revenues of the COVER
ment, or that they can be relieved by n
crcaslng taxes upon the commodities ch-
sumed by the people. These difficultiesAre
the necessary results of our financial lgis-
lation, and they cannot be removed even
temporarily, by tariff laws nor by an 9th
er measures which do not directly -nable
the government to procure the meas nee
essary for the maintenance of ged pay
ments."
do you think then that the iond bill
reported in the house will furnisi any re-
lief TO the treasury"
The Only Remedy.
II am satisfied that there is Du one per-
manent remedy for our financial emisar-
easements. and that is Legislation provid-
ing for the retirement and caIrellation OF
The legal tender notes, but. recognizing
the fact that such a measure would re-
quire time for its consideration, and Tor
Its complete execution " adopted, had
hoped that congress would Immediately
take the necessary steps to assist the gov
eminent In its efforts to procure ana mann
tain such a gold reserve as may be re-
required TO remove the dlstrust and APP
prchension which have precipitated the
present emergency. Tie bill reported by
the committee on way and means falls
very far short of the rquirements OF the
situation. and its passage will not bene-
ficially affect the situation with which We
now have to deal.
Cause of the uficulty.
Our difficulties were produced and have
been prolonged and aggravated by the
fear that. notwilhs anding all the efforts
of the administration, we may ultimately
be unable to procure gold for the purpose
or redeeming oui notes, and consequently
be forced to silver basis, and this fear
cannot be wholly remoSe ed until some ac-
ton Is taken by congress- clearly lndicat-
Ing purpose to pay all our 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 government to maintain gold pay
ment, the fact that there has been no
legislative oecla' alton 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-
punishment of The reserve upon the most
advantageous terms, but increases the
demands for gold by the presentation OF
notes at the very times when We are least
able TO meet them without injury to our
credit.
Pending Bond Bill Insufficient.
IF 1t 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
eral expectation is not sufficient to alto
gether satisfy investors especially in times
OF financial disturbance About SIG 100000
in interest could have been saved to the
people on the last issue Of bondsif congress
had consented to make them expressly pay
able in gold, instead of coin. This condi-
ton Is not at all improved by the pending
bill, which still requires all bonds to be
payable in coin as heretofore, and confers
no new authority except the power to issue
an sell three per cent bonds, also payable
in coin. AFTER five years. with interest pay
atje in coin semi-annually. At the pres
EFT time our 30 year four per cent. bonds.
with interest payable quarterly, are sell
ing in the markets at rates which yield in
vestors more than three per cent. per an
nun, and this fact should not be over
looked in determining whether or not
five-year three-per cent. coin bond could
now I've sold at par, as the penoing bill re-
Qulres."
Speaking of the second section of the
bill, which authorizes the issue OF GER
titicates TO meet deficiencies in the rev.
enue, Secretary Carlisle said: While
there is no necessity at the present time
for resorting TO the exercise of the power
which that section confers, and may not
be in future, the secretary of the treasury
ought always to have the authority to
issue and sell or use in the payment of ex-
penses, Short-time certificates, or bonds,
of the character described in the bin.
Such authority ought to have been con-
fcrred upon him long time ago and IL
ought to be made permanent instead of be-
ing limited to s50.0e0,O00 as ii is by the
bill Except as to this limitation, the sec
Of 10 10