The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-13

y,surSoroS, D. C., Dec. IA letter
"a. read from Lyman ]. Gage, banker
,rd saaucier OF Chicago, at the open.
.of the hearing of the house commit.
q. on banking and currency to-day.
n, Gage had been invited to appear
S.fo,e the committee, but as he was un.
,bls 10 come his views were summar-
i,,dby letter. Referring to the recon-.
r,uda.ions OF the President aud secre-
.,rv Of the treasury, Mr.. Gage says:
GAvresinr with the criticisms made
hv these officers as to the present weak.
s..,ot our situation aud the great de-
INABILITY Of separating the government
hom The direct responsibilities OF cur
,sncy issues, ! am persuaded that the
,ountry Is not ready to accept their rec
concentrations as to the methods pro-
oo,ed. In making any change tue
mstbod should be so simple that all
can comprehend 1t, and it should be
'ssn that the incidental effects would
hal be in any direction disturbance to
t,sds, commerce or industry, l believe
,hs baltimore plan carries the true
sIinciples Of great currency, but We
tannet reach it by any one step and
ysars may intervene before it can be re-
.lIsd, In the meantime the way for
Ma government to step out OF the cur.
,sncy business and place the burden OF
REDEMPTION on the banks is plain
namely:
81 per cent bonds, payable at such time
a. Congress may elect, twenty-five
years desirable). TO be offered to sub
rdber at par. Accept in payment
Iulted States legal tender notes or treas.
uy notes, the same 10 DO cancelled.
Amend the national bank act go that
banks can obtain note issue to the face
value Of bonds deposited as security for
circulation. Reduce the tax on circu.
chatting notes to ore-haIf OF one per
cent
"This done, national bank notes would
make good the vacuum caused by the
retirement OF government notes. In
under it, TO be followed later by some
contraction, through forced REDEEM ptIon
Of bank issues, il it be true. as some
claim, that the volume OF circulating
media In the United State, is larger
than can be maintained and that the
outflow OF gold IS natures method OF
tauaIilins things. Ii this be so, il
contraction through the expectation OF
gold or by retirement OF portion Of
the paper money be logical sequence
Of gu! situation, then in that case. the
government being safe from demands.
the banks with circulation outstanding
would be obliged to bring their issue
within narrower limits. But all this
would work itself out and need not be
dwelt upon at length now.
THE problem is this-To take tho
government out OF the note-issuing bus
mess. First. without contracting the
currency in the process. Second, with.
gu! inviting expansion. Secretary Car
isles plan Is subject to the danger in
VOWED under the last suggestion.
Were the above suggestions to re-
eeive serious consideration there are
some features of the national bank act
that would require amendment in order
10 give note.holders easier and cheaper
access to the points OF redemption than
now exist Redemption agents in cities
should be restored-but these are de-
tails which l will pass by"
letter was also read from Edward
N.Gibbs approving the national bank
lTstem with some modification.
George c. Butler. Of New Haven,
Conn, then addressed the committee.
Represented currency plan differing
somewhat from the secretary's and the
Baltimore plan. Its features included
aoIe issues to so per cent OF banks
capital removal OF comptroller OF cur
,,enGy 10 New York, where ne should
have control OF the specie reserve made
utpo % per cent of notes issued. Mr..
Buffers plan also proposed a board OF
bank officers in New York, presided
over BY the comptroller OF the currency,
and the erection Of suitable building
IN New York for the currency bureau.