Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1897-10-20
CURRENCY TALK.
President Mckinley and Secretary Gage
Confer on the Financial Problem.
GAGE FOR A GOLD STANDARD
The Secretary Considering Plan for the
Separation of the Issue Department
from the Fiscal Department
of the Treasury.

WASHINGTON. Oct. l7.-The president
and Secretary Gage have had one or
two general talks regarding the recon-
mendations TO be mtide to congress re-
specting the currency, but have not
yet taken up the DIGESTION in detail
The president repeatedly has assured
the managers of tie so-called mon.
etary commission that he believed
in thorough discussion of the cur
rency subject at the coming session
of congress. Secretary Gage is seek
ing the opinions OF leading financiers
by means of some printed interrog
atories regarding the proposed plan
of currency reform. The secretary
has not yet formulated his plan, but
he has some indefinite ideas regarding
what should be done. The suggestion
that the bonded debt be refunded into
~, payable specifically in gold, was
embodied in the circulars of the secre-
tary. The other features attributed
to him-the issue of separate block of
$500, 900 such bonds for the purpose
of retiring the legal tender notes, and
for sale in Europe. in order to
strengthen the gold reserve-are
said to be incorrect. 1t is possible
that the secretary may ask certain
discretion in selling bonds abroad,
but there will be no separation OF
the bonds into two blocks, one for re-
delnption purposes and one for
strengthening the gold reserve. Sec
retary Gage is inclined to adhere
strictly to the gold standard. with nc
provision for silver except as a sub
sidiary coin of limited legal tender
power. This makes it extremely i'm
probable that any policy drafted by
him will pass the senate without inn
portant change. The recommendation
to congress that bonds be no longer
redeemable in coin, but specifically in
gold, would appear, also, as cutting
the ground from under Wolcott's feet
and defeating the results of his labors
in London and on the continent 1t is
not unlikely that the president will be
somewhat guarded in discussing this
phase of Secretary Cages plan, but
the conciliatory temper of Mr.. McKin-
ley may permit him to commend the
plan generally to the careful consider
alton of congress, without giving his
person al Endorsement to every detail.
Oro of the cardinal features of the
plan which Secretary Gage has under
consideration is the separation of the
issue department from the fiscal depart
ment of the treasury. This would be
accomplished by putting into a dis.
tinct fund all the gold and silver held
for redemption purposes, including
bullion, and charging against this
fund all the outstanding paper money
of the government. 1t would then be
possible to provide that the presenta-
tion of paper note for redemption in
gold should be accompanied by the re-
tention of the note in the treasury un
til gold came back to draw it out
again. 1t is believed that the condi
tions, which repeatedly have occurred.
by which the deficit in the treasury
caused constant issue of currency
resulting in imitation to the amount OF
the deficit, then would come to an end.
The changes in the banking law
which will be recommended by the
president and secretary have not as.
sumed final form. Secretary Gage
often expressed himself, before ap-
pointment to his present position, in
favor of a conservative issue of credit
currency. He has not at any time pro-
posed that this credit currency be is.
sued without security at WASHINGTON.