New-York tribune., 1897-12-17
PRICE THREE CENTS.
MR.. GAGE SUBMITS HIS BILL.
THE SECRETARY BEFORE THE BANKING
AND CURRENCY COMMITTEE.
HE EXPLAINS AND DEPENDS THE PROVISIONS o.
HIS MEASURE FOR REVISION OF THE CUR
RENcY AND BANKING LAws-OBJEc-
rIoNs OF Committeeman
ANSW Erred

TIoNs OF Committeeman
ANSWERED
Washington. :. 16.-Secretary Gage ap.
peared to-day before the Committee on Banking
and Currency Of the Housq to present bill en-
bodying his Views for a revision Of the currency
laws to explain and urge its provisions, and to
meet any objections raised by the committee.
The Secretary was accompanied by Judge
O'Conne Solicitor OF the Treasury. Copies OF
the Secretary's bill were handed TO members OF
the committee. and were scanned with great in
te-est After being introduced to the members
Of the committee Mr.. Gage began his statement.
speaking in easy conversational manner, and
following notes. He said in opening:
The objects have in mind in the series Of
provis ms offered by me are four In number:
l. To commit the country more thoroughly to
the gold standard. remove, 80 far as possible.
doubts and fears that point. and thus
strengthen the credit Of the United States both
at home and abroad. To strengthen the
Treasury in relation to rs demand liabilities. in
which are included greenbacks Treasury notes
and tho incidental obligation to maintain on q
parity through interchangeabfity with gold
so far as may be necessary. the present large
volume Of silver certificates and silver dollars
3. To do this In such a way as not to contract
the volume Of circulation In the hands OF the
people. 4. To take an initial step toward sys-
tenn OF bank note Issues without the conditional
deposit Of public bonds security therefor. II
we prosper a people the revenue OF the Gov
ernment ought to somewhat in advance Of its
expenditures. and the public debt Of the United
States gradually reduced and finally extin-
guished. Looking at the question widely from
my best point of knowledge and experience. I
feel that II these could be secured the condition
Of the Government, in It's relation to the cur
rency, would be much safer and stronger than
row, and that through the operation Of National
| bank note currency the commercial and indus
| trial interests Of the United States would be
| greatly advantaged."
| TO STRENGTHEN THE NATIONS CREDIT
Turning from his notes. Mr. Gage proceeded
! extemporaneously as follows: "As 20 the first
proposition-to commit the country more thor
oughly TO the gold standard remove as far a.
possible doubts and fears on that point, and
thus strengthen the United States both at homo
and abroad-l would say that the proposition to
refund the bonded debt Of the United States
now payable in coin, into bonds bearing their
face a lower rate OF interest, ard payable. prtn-
| cipal and interest, In gold, is measure directed
to that end. 1t costs nothing to the Govern
ment whatever so far as the refunding Of It is
concerned. except the expenditure necessary 10
print the bonds and do the clerical work. It
takes ambiguity out OF the relations Of the Gov
ernment to It's creditors. 1t gives, believe a
strength and security and power to the whole
commercial and industrial system of the United
| States and the measure as 1t is prepared here
in the bill will. in my opinion. accomplish that
| object.
| THE other measures which are before you,
which am now ready to be questioned about.
| % NIL fch nnf On1v he
objects named but the various purposes al
ready detailed by me. II they are worthy OBJ
| jects, they ought to be recognized and secured.
| II they are unworthy objects. they ought to be
rejected or If the manner Of securing them is
not wise one. as have outlined it, the manner
ought TO be rejected reformed or improved"
DISCUSSION OF THE BILL.
After this statement 1t was deemed advisable
to read the Secretary's bill In detail and dis
cuss II section by section. A wide range OF dis
cussion occurred on Section OF the bill In an.
swer to inquiries Mr.. Gage said its general pur-
| pose the as that set forth by the
| President He also said. in answer to query
| from Mr. Cox. of Tennessee, that there was no
probability that the parity between gold and
silver would be disturbed by the provision for
exchanging Treasury notes and silver certin-
Gates accumulated in the redemption fund for
coin, meaning gold.
On the bond section. Mr.. Gage changed the
bill. TO make the interest payable quar-
tery. He said the only purpose Of the section
was to refund outstanding bonds for low-in.
terest bonds payable in gold. This would not
reduce the gross amount Of the debt, but Il
would make saving on interest which the
Secretary roughly estimated at $4,000 900 an
nually.
tha ,opfn notA t0h otoaA An
some Of It's bond issues. He thought It possible
that these could be taken up in time at a rate
Of interest even below per cent, but this pro-
posed 2ls per cent rate was at least a step
toward reducing the interest charge.
Mr. Gage said he had excluded from his re-
| funding plan the bonds issued in 1895. although
in his recommendation to Congress these bonds
were enormously included. He said he preferred
to let these bonds alone. as a question had been
! raised at the time OF their issue as to their pay
| ment in gold. and he lid not wish to enter upon
that question. In reply TO Mr.. johnson. Of In
diana Mr.. Gage said the bill would exclude all
| the bonds issued under the Cleveland Admins
| tration.
| PLAN OF ISSUING BANKNOTEs
Mr. Gage explained In detail the plan Of issu-
| ing National banknotes for United States notes,
| Treasury notes and silver certificates and tho
| covering Of the latter demand notes for refund
| ing bonds He said the purpose OF this was to
| accumulate $500. OOO,0 900 OF the demand obliga-
tions, placing them aside where they would re-
leve to that extent the demands on the Treas
ury 1t was essential. he felt. that these demand
obligations should be materially reduced At
the same time he did not consider IT safe to
| contract the currency by $200,0000O0 at one
stroke. and for that reason he had provided for
issue Of National banknotes to fill the vacuum.
Mr.. Brosius asked how parity OF the metals
! could be maintained II demand obligations were
withdrawn from circulation and accumulated
| In the Treasury.
Mr. Gage said there would be ample demand
l-,otes outstanding beyond the $20O.0OO00O.
| Mr.. Brosius insisted that 1t would impose on