The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-12-24

HI Describes Two Kinds OF Bimetaltsm.
The Vast Amount of Currency Possible
Under This Bill
Washington, December 17.-Secretary
Gage resumed his exposition Of his
comprehensive bill before the house
committee on banking n currency
today. Chairman Walker had left the
city, and Mr.. Brosius, Of Pennsylvania,
presided. Before the bill proper was
taken up, some semi-polftical questions
were asked.
MI. Hill, republican, of Connecticut,
called Mr.. Cages attention to the
statement made yesterday that the
first of the bill was to commit
the country to the gold standard. You
are recognized as a rep~ublincan,'
said Mr.. Hill, addressing the secretary,
land you are familiar with the finan-
cial platform of the republican nation
al convention at st. Louis. DO you
consider that this purpose Of more
firmly fixing the gold on
the country conflicts with the principle
VI liz ol LOulS paul III
mo, sir" responded Mr.. Gage. "Not
as 1 look at the principle of bimetal-
lfsm. Bimetallism must mean one of
two things: Either it is two kinds OF
money of unequal value circulating
side by side, by reason of The exchange
of the less valuable for that Of greater
value, or else two kinds of money of
such intrinsic equality of value that
they will circulate naturally side by
side. We have 'bimetallic currency in
the United States now. A firm estab-
lishment of the gold standard with
such interchangeajbility with silver as
will make it acceptable on an equality
with gold, will this bmetal-
lism, the same as it has existed for
the last eighteen years"
The secretary went on to state that
this in no way prejudiced any steps
that might be taken to bring silver up
to a higher of value. The
bill, however, vas designated to give
such confidence in the financial ability
of the government that the discrim-
inations against silver would largely
decrease.
Mr.. Cox democrat. of Tennessee,
asked if the result of the Gage bin
eventually would not lead to one kind
III paper IIUlley-Ddilh dllN III
silver except subsidiary silver.
There is nothing in the plan to ope-
rate to that extent now" answered
the secretary. 1T is in that direction,
and, with further legislation developing
it might ultimately lead ito such a re-
suit; but 1 would not say that the sill
YER would be restricted to subsidiary
silver; I woul say a system of silver
which would be subordinate. 1T is
subordinate now"
After this diversion to the silver
question, the consideration of the bill
by sections was sumo at section Z.
This section provides that on the de-
post by a national bank of United
States bonds, United States notes,
treasury notes of 1890, or silver certifi-
Gates to an amount of not less than so
per cent. of it's capital, it shall receive
national bank notes, in addition to the
so per cent. otherwise provided, to the
amount of % per cent. of such deposit,
these additional notes not Being secur-
ed by the deposit of bonds or notes but
by the assets Of the bank and the gov
guaranty.
Mr.. Gage referred to the advantage
of this additional unsecured circulation,
in giving an elasticity to the COUNTRY
at points where lit was most needed. In
ans wer to questions by Mr.. NewlandS,
of Nevada, the secretary sale that the
amount of refunding bonds under the
bill would reach $1,13S, 000, 900, if all Of
them were issued. These bonds being
the basis for circulation. bank notes
could be issued to that mount. Be
sides these, the additional % per cent.
of unsecured circulation would give a
further issue of bank notes Of about
$500, 600, 900 But hat vase issue was
mnrn1V tho arg tjnn of n Cnnofya op6
was moi a reality. The banks could
not get all the bonds and use them for
issuing bank notes. On the contrary,
government bonds are always taken
largely by private investors, trust COM
panfes, insurance companies and par
ties across the water.
Mr.. Newland referred to "gold con-
tracts" and asked the secretary's view
of them.
Mr.. Gage said he did not consider it
desirable to interfere with private con-
tracts of this character any more than
was necessary.
The extent to which drains on the
government stock of gold would result
under the operations of the bill, ex-
cited much discussion.
Mr.. Gage stated that all r~ede1mptions
would be made in gold or it's eQuiva-
lent.
Proceeding to Section s, which pro-
vides for a deposit by the banks of a
sum equal to 10 per cent. of the circu-
lation, and also pledges the faith of the
United States to the redemption of the
bank notes, Mr.. Gage said the latter
feature was merely to make clear the
Same pledge as the government now
gave to the integrity of bank notes.
On Section 9, providing that issues of
national bank notes shall be in de-
nominations above $40, Mr.. Gage said
that the purpose of this was to give
the government the monopoly on small
bills in most common use.
When Section 10. providing for the
redemption of ank notes at the New
York s~ub-treasury and other designat-
ed points, was reached, Mr.. Cox asked
Mr.. Gage why he did not specify that
the redemption should be in gold or
other legal money.
The secretary answered that the less
discretionary mower impoSe6 on ar ov