Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1894-12-12
CURRENCY REFORMS.
Lyman CAGE, Of Chicago Discusses
The Money Question,
he FAvORs TnE BALTIMORE PLAN,
But Believes that Years May Inter.
Veno Before II eau Do
Realized.

WASHINGTON, Dec. ia letter
was received from Lyman j. Gage,
tho prominent banker Of Chicago, At
the opening Of the hearing Of the
House committee on banking and
currency toisy.
Reistiing 10 tno recommendation Of
tho PfotidoAt ani secretary of the
treasury, Gage said; agreeing with
the Cfiticisius u these officers Of toe
/ government ns 10 tue present weak.
ness VI our situation anu the rftat
uesltabliity Of separating the govern
ment fTum direct responsibility Tor
| currency isaues, I AM persuaded that
the country ~ net ready 70 Hocept their
recommendation. Auy change OF the
method should bu aO simple that all can
] comprehend IL, aud " should 10 aeon
that the incidental effect would not be
Ia any direction disturbing ~ trade,
commerce or Industry. 1 belieVe The
'ballimofo PLAN carries tnoirua princi.
| pies OF credit CURRENCY, bui VIZ cam
/ not reach IL by one STEP, and yesfa
| may intervene before 10 can DO
realized. Meantime tue way for tho
government 10 step out OF the
currency business and place the
burden Of redemption on the banks IL
plain authorize an Issue OF $3.50, O0O,-
OlO tW.-and a-hait per cent bonds, Jay
able at such time hs Congress may
elect twenty-five years dotirablul, 10
be offered M bscribern at psf, ACCEPT In
payment United States legal tender
notes or treasury noteF, tho same TO DO
cancelled; amend tho national bank
ACT no that banks can obtain mote
Issues 10 the face value Of bonds de.
posted aa security Tor circulation; re.
duco the tax on circulating nO,ts to
half OF one pcr cent.
"fhis done, national bank notes
would make good the vacuum cause
by the retirement OF government
notes. In fact there would be some
expansion under a., TO be followed later
Uy some contraction through forced
redemption OF bank issues, 10 II be true,
~ some claim, the volume OF the cir
eulating medium ia the United States
Is larger Than can DO maintained, ami
the outflow ui gold IL nR,ute's method
OF tqualiz.ng things. The problem
Il this-t0 take the government
out OF the note issuing business,
mt - without contracting the
currency Ia tue process; aecond -
without Inviting Nh expansion. Sec.
Rotary Chrlisle'a plan Il the danger In
VOWED under tue A.tangg gslion. Were
the above fuggostiOns 10 receive seri.
Gus confederation, there are some
featufoa VI tbs national bank act that
would require amendment In order 10
give note holders easter and cheaper
access 10 points Of redemption than
now exists. Redemption agouls Ia
cities should DO TcstOfed-but theae ato
details which I Will pass by.0
A letter was Also read from Edward
N. Clubs, treasurer Of the New York
Lille Insurance company, approving
tho national bank system with some
modification.
George Z. Butler, Of New Haven,
COnu,i prusentgI CURRENCY plan dii.
iotlng from the ssofulafy's and the
"BaliimJre plan" lie features
Include notes Issued up to eight Der
cent Of tho banks capital; removal Of
the comptroller Of currency 10 New
York, whore he IL 10 have control OF a
specie reserve made up OF 70 per cent
OF the notes issued. Buffers plan also
proposed n board OF bank Otlleefa ia
New York, presided over by the comp
trollut OF the currency; and also the
erection Of a suitable Building in New
York TOT currency bureau.