The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-18
GAGE RUNS THE GAUNTLET.
SEMI-POLITICAL QUESTIONS FIRED
AT THE SECRETARY.


Bill as Conflicting with the FL
nanciaI Plank of the st. Louis
Platform In Having for One of Its
Objects More Firmly Fixing of the
Gold Standard on the Country.
Nothing Inimical to silver In the
Measure.
Washington, Dec 17.-Secretary Gage
resumed his exposition of his comprehen-
sive currency bill before the House COM
mittee on banking and currency to-day.
Before the bill proper was taken up some
semi-political questions were asked Mr..
Hill, rep, of Connecticut, called Mr.. Cages
attention to the statement made yesterday
that the first purpose Of the bill was to
commit the country to the gold standard
You are recognized as a republican"
said MIR. HILL addressing the secretary,
"and you are familiar with the financial
platform of the republican national con-
vention at st. Louis. DO you consider
that this purpose of more firmly fixing the
gold standard on the country conflicts
with the principle of the st. Louis plat
form?"
NO sir" responded Mr.. Gage; mot as
1 look at the principle of bimetalism BIZ
metallsm must mean one of two things,
either 1t is two kinds of money of equal
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 a bimetallic cur
rency in the United States. firm estab-
ishment of the gold standard, with such
interchangeabillty with silver as will make
it acceptable on an equality with gold. win
maintain this bimetalism, 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 to higher stand
ard OF value. The bill, however. was
designed TO give such confidence in the
financial ability of the government that
The discrimination against silver would
largely decrease.
After this diversion to the silver ques-
tion, the consideration of the bin bv SEQ
tlons was resumed at section seven, where
the discussion closed yesterday. This sec
ton provides for an increase of the ma
tional bank note circulation to be secured
not by the deposit of bonds or notes
but by the assets of the bank and the
government guaranty. Mr.. Gage referred
| to the advantage of this additional un-
secured circulation, in giving elasticity to
the currency d points where IA was most
needed. He showed from the returns of
the controllers office how small a per-
centage of loss came from national banks
and urged that this unsecured crcula-
ton would entail a considerable obliga-
ton on the government by reason of it's
guarantee and would be overcome by the
n Y m hfa Irs,
demption fund.
Mr. Newlands of Nevada referred to
"gold contracts" and asked the secretary's s
view OF them. MIR. Gage said he did not
| consider it desirable to interfere with the
present contracts of this character any
| more than was necessary.
To Mr.. Prince of Illinois he exD1atned
that his expression Gold and other legal
money used in the bill, meant no refiec-
tion on silver or other classes of money.
The legal money included silver and the
expression merely served to cover a well
understood term.
The extent to which drains on the gov
ernment stock of gold would result under
the operation of the bill excited much dis
cussion Mr.. Gage stated that all redemp-
tlons would be made in gold or its equiv-
alent Mr. Fowler of New Jersey said
this opened serious question and induir-
ed If silver certificates would not be de-
|
taken by national bank notes. thus in
creasing the drain on our gold supply Mr.
Gage said that it was easy to conjure up
hypothetical objections, but he did not
look at any one as serious. ANY Secretary
of the Treasury, on receiving these silver
certificates would swap" them for green
backs, treasury notes, and other forms of
demand notes which served to drain gold
and thus build up the redemption fund
Regarding section s. which pledges the
faith of the United States to the redemp-
ton of bank notes, Mr.. Gage said that il
was merely to make clear the same pledge
as the government now gave to the integ-
rity of bank notes. He did not agree with
objections suggested that the 10 per cent
deposit required of the banks by this sec
ton and the per cent. tax on them for
safety fund would make it Improbable
for them to issue circulation
There were other advantages secured to
them which offset this objection. The
purpose of section 8, providing that issues
of national bank notes shall be in de-
nominations above $40, was to give the
government the monopoly on small bills
in most common use.
When section 10, providing for the re-
| demption of bank notes at the New York
sub-treasury and other designated 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
| SecTttdIy answered NHal tne less QiSCre-
tionary power imposed on an executive Of
hcer in the execution of a principle. the
better, for sometimes executive officers
might have indscretion and do foolish
things. Moreover this discretion existed
now.
When the remainder of the bill had been
read, general discussion began. In an
swer to a cross-hre question, Mr.. Gage
| said the bill could not result in a raid on
the treasury by bank notes. 1t was not
the substitution of an endless chain" of
greenbacks for another endless chain"
of bank notes. The banks would have to
redeem their own notes and 1t would be
| their object to do so or they would be
| closed But so long as a dollar of demand
| obligations was outstanding, so long this
| "endless chain" would go on. He said.
This bill is simply a step in the right al
rection and a most important step. It
would give the government SS25,-
| 100000 of the very liabilities
which are most likely to be brought
against it, OF this, sl25,OOO,OO0 il in gold
| Then with the further measure recon-
mended by the President, giving authority
for loan up to 100000 900 when REQUIRED.