The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-12-17
SECRETARY APPEARS BEFORE
BANKING COMMITTEE.
Explains His Proposed Law and is Then
Interrogated as to Probable Effect OF
the Various Changes sugGested-Hear-
ing VIII Be Resumed Today.

urge its provisions and, to meet any OBJ
iections raised by the committee The
Secretary was accompanied by Judge
" Connell, solicitor of the treasury.
Copies of the Secretarys report were
handed to members of the committee and
were scanned with great interest. After
being introduced to the various gentle
men of the committee, Mr.. Gage began
his statement, speaking in an easy, con-
versational manner and following notes.
He said in opening:
The objects I have in mind In the
series of provisions offered by me are four
in number.
thoroughly to the gold standard; remove,
so far as possible, doubts and fears on
that point, and thus strengthen the credit
of the United States both at home and
abroad
Second, to strengthen the treasury in
relation to its demand liabilities, in
which are included greenbacks, treasury
notes and the incidental obligation to
maintain on parity, though inter
changeabilitt with gold, SO far as may be
necessary, the present large volume OF
silver certificates and silver dollars.
Third, to do this in such a way and
not to contract the volume of circulation
in the hands of the people.
Fourth, to take an initial step toward
system of bank note issues without the
conditional deposit of public bonds as
security therefor. If we prosper as q
people the revenue of the government
ought to be somewhat i'll advance of its
IL skY,,,1< .l-l.L
United States be gradually reduced and
finally extinguished. Looking at the
question widely. from my best point of
knowledge and experience, | feel that If
these could be secured the condition of
the government in it's relation to the our
rency, would be much safer and stronger
than now, and that through the opera
tion of national bank note currency to
commercial and industrial interests of
the United States would be greatly ad-
vantaged. -
Turning from his notes, Mr.. Gage pro-
ceeded extemporaneously as follows:
LAS to the first proposition, to commit
the country more thoroughly to the gold
standard, remove, as far as possible,
doubts and fears on that point and thus
strengthen the United States both at
proposition to refund the bonded debt of
the United States, now payable in coin,
in bonds bearing on their face a lower
rate of interest and payable, principal
and interest in gold, is in measure
directed to that end.
''It costs nothing to the government.
whatever, SO far as the refunding of it is
concerned, except the expenditures neoes-
sary to print the bonds and to do the
clerical work. 1t takes ambiguity out of
the relations Of the government to its
creditors; 1t gives l believe, strength
and security and power to the whole COM
mercial and industrial system of the
United States, and the measures as 1t is
prepared here in the bill, will in my
opinion, accomplish that object.
The other measures which are before
you, which l am now ready to be ques-
toned about, have been drawn to com
pass not only the objects named, but the
various purposes already detailed by me.
If they are worthy objects they ought to
be recognized and secured. If they are
unworthy objects they ought to be re-
is not q wise one, as have outlined it,
the manner ought to be rejected or re-
formed or improved"
After this initial statement it was
deemed advisable to read the Secretary's
bill In detail, and discuss it section by
section.
IAO blAI was as AOA1OWos
For establishing redemption fund and
q division of issue and redemption in the
treasury of the United States and to
modify existing laws respecting laws re-
specting national banks and for other
purposes.
Be it enacted, etc., that there be estab-
lished in the treasury department. as q
part of the office of the treasurer of the
United States a division to be designated
Irp ho
redemption, to which shall be assigned,
under such regulations as the secretary of
the treasury may approve all records and
accounts relating TO the issue, redemption
and exchange as hereinafter provided of
the several classes of United States paper
money.
There shall be transferred from the
general fund in the treasury of the United
States and taken up on the books of said
division as redemption fund the sum of
Sl25, 000 600 in United States gold coin
and bullion and such further sums of
standard silver dollars and silver bullion
purchased under the act of Congress ap
proved July Ia, 1892 as shall equal the
silver certificates outside the treasury
and treasury notes of 1890 outstanding on
the date when this act shall take effect;
and thereafter the gold and silver coins
and bullion hereby transferred from the
general fund in the treasury as herein
provided shall be increased or diminished
as the case may be, in accordance with
the provisions of this act, and in no other
way.
Section 2. That all United States notes,
treasury notes, notes Of 1890 and silver
certificates presented for redemption snail
be redeemed from the redemption herein
provided, in accordance with the term OF
existing law. but the notes and certifi-
Gates, so redeemed shall be held in part of
said fund and shall notA be withdrawn
from such fund nor disbursed, except in
for an equivalent amount of
the coin in which said notes or certificates
were redeemed; but to enable the secre-
tary of the treasury more thoroughly to
carry out the provisions contained in this
act, he is hereby authorized to exchange
any of the funds in the division of issue
and redemption for any other fund which
may be in the general fund of the treas
ury department.
Provided, that nothing in this act shall