People's Pilot, Volume 5, Number 50, Rensselaer, Jasper County, 18 June 1896 — ABOUT BOND ISSUES. [ARTICLE]

ABOUT BOND ISSUES.

SECRETARY CARLISLE EXAMINED UNDER OATH. Answers Questions Put to Him by Senator Vest and other Alembers of t.he Committee Named to Investigate— Some Explanations, Secretary of the Treasury Carlisle was examined' , under oath at Washingtp by the senate committee appointed to investigate recent bond issues. The hearing was held in the rooms of the senate committee on finance, Senato:s Harris, Vest, Walthall, Jones (Nev.) and Piatt being present. Mr. Vest began the examination, asking for fuller explanation of the first bond contract -with the Morgan syndicate than had been given in Mr. Carlisle’s written statement. His main purpose, Secretary Carlisle said, was to prevent the shipments of gold from this country. Mr. Vest asked why the contract had been given to the syndicate, to which Mr. Carlisle replied with a lengthy explanation of the great emergency existing which would not permit a delay for the usual formalities of a bond sale. Mr. Carlisle went on to explain that the president was kept advised of al lthe phases of the negotiations. Mr. Walthall of Mississippi went into the question of how the negotiation with the syndicate had been initiated. The secretary’s impression was that it had been initiated on a visit to Mr. Belmont. One of Mr. Walthall’s questions brought out a statement from Mr. Carlisle as to the critical condition of the treasury at the time the syndicate contract was made. The fact was, he said, that the treasury had reached the point where there were gold certificates outstanding which it had no gold to meet. He had never stated this fact before. "I suppose you never contemplated paying in silver?” inquired Mr. Vest. The secretary replied that the present policy of paying gold had been followed so long that he did not consider it expedient to depart from it at a time of emergency. Mr. Platt inquired as to current reports that Mr. Carlisle at one time had contemplated paying in silver, but that “it had . come to the ears of the president, who said it must not be done.” Mr. Carlisle said he had heard of these reports, and the statement that the president had overruled him had not a wmrd of truth in it. Assistant Secretary Curtis was examined rapidly and pointedly by Mr. Vest. Mr. Curtis said he had gone to New York by direction of Secretary Carlisle before the syndicate bond contract was made to ascertain the temper of the siuation. He had visited bankers, officials, etc. “Did you expect to get the temper of the situation from the bankers?” asked Mr. Vest. The assitant secretary responded that he had talked with men at the clubs and with Mr. Fairchild and Mr. Stewart. His first specific instructions from Mr. Carlisle were to “go and see Belmont.* The secretary directed him to se what could be done to get gold from abroad, but authorized no proposition to be made. Mr. Belmont showed his unfavorable cablegrams from Europe. Mr. Vest’s questions indicated surprise that Mr. Belmont should know of the treasury’s need of gold and should be negotiating with Europe before Mr. Curtis had arrived.