The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-12-17
CAGES Financial BILL.
SECRETARY OF THE TREASURY
PRESENTS 1T TO CONGRESS.
Paper Paid In for Gold, Only TO
he Reissaed when Gold In Paia
In, AID for Bank Circulation.

WASHINGTON. Dec is-secresary
Gage appeared today before the house
committee on banking and currency TO
present bill smbodying his views for
the revision OF the currency, to explain
and urge its provisions, and 10 meet any
objections raised by the committee. After
! being introduced TO the various gentlemen
OF the committee the secretary said:
The objects I have enumerated in q
series of provisions offered BY me are four
In number.
"First-To commit the country thor
oughly 10 the gold standard, and remove
so Tar as possible doubts and fears on
that point, and thus strengthen the credit
OF the United States both at home and
'Second-To strengthen the treasury in
relation TO its demand liabilities. which
are included in greenbacks. treasury
notes, incidental obligations to maintain
on parity through interchangeabiiity
with geld, SO far as may be necessary.
the present large volume of silver GER
rncates and silver dollars.
''Third-To do this in such way as not
10 contract the volume of the circulation
In the hands of the people.
ouFtn-To take Initial steps toward g.
system of bank note issues without con-
ditional deposit Of public bonds as secur-
ity therefor.
II We prosper as a people. the revenue
or the government ought 10 be somewhat
public debt OF the United States grada-
ally. reduced and finally extinguished.
Looking at the question widely from my
pest point OF knowledge. and experience.
feel that IL these could be secured the
condition OF the government in It's reia-
ton 10 the currency would be much safer
and stronger than now, and that through
the operatlon OF the national bank note
currency, the commercial and industrial
interests of the United States would be
greatly advanced"
Mr.. Gage said the only purpose OF the
pond section was TO refund outstanding
bonds for low interest bonds payable in
gold. This would not reduce the gross
amount OF the debt, but 1t would make a
saving on interest which the secretary cal
crlated at 100000 annually. He had ex-
Guided from his refunding plan the bonds
issued In 1895. although in his recommsnda-
tons to congress these bonds were errone-
ously included. The bill would exclude all
the bonds Issued under the Cleveland ad-
ministration
Mr.. Gage explained in detail the plan of
Issuing national bank notes for United
States notes. treasury notes and silver GER
tificates and the covering of the latter de.
mand notes for refunding bonds. He said
the purpose of this was TO accumulate
S2ooo.VOo OF the demand obligations, plac-
Ing them aside where they would relieve to
some extent the demands from the treas
ury.
Mr. Broeus asked how the parity OF the
metals could be maintained If the demand
obligations were Withdrawn from circula-
ton and accumulated in the treasury. Mr.
Gage said there would be ample demand
notes outstanding beyond the $4,000 O0O
Mr.. Brosius asserted that the banks would
be called upon to maintain the parity. and
that If they were unable 10 do So the coun-
try would at once be forced to silver
basis.
Mr.. Gage smilingly remarked that he did
not see the situation In that light. He ap-
pretended no such emergency.
Mr.. Gage inthnated. in response to In
auiries OF Mr.. Prince. that there were
sa0Ooo.ooo of demand obligations outstand-
ing. Technically. the entire $93o, 600 900 was
subject to demand at any time and must be
| met with gold If this was required. There
fore, Ii was practically Impossible. he urg-
ed. that all these obligations should be
presented at any one time, or even a small
percentage OF them.
After this initial statement 1t was
deemed advisable to read the secretary.s
bill In detail. and discuss its relief by
| sections. The bill is as follows:
"A bill to provide for the funding of the
national deots for establishing a redemp-
demption in the treasury, and TO modify
existing laws respecting national hanks.
and for other purposes BE 1t enacted:
ry That there be established q, IN the treas
| the treasury OF the United States, a divi-
| sion to be designated and known as the
division OF kssue and redemption, to which
| shall be assigned, under such regulations
| as the secretary of the treasury may APP
prove all records and accounts relating 70
| 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
AIKEN ap on tbs books Of said s avson ana
| redemption fund, the sum of s2z.oo0 900
| in United States gold coin and bullion. and
| such further sums Of standard silver dol.
| lars and silver bullion purchased under tho
| act OF congress approved July II, 1880 as
| shall equal the silver certificates outside
| standing on the date when this act shah
| take effect: and thereafter the gold and sill
| yer coins and bullion hereby transferred
from the general fund In the treasury az
| herein provided. shall be increased or d.
| minished. as the case may be- in accord
| anee with the provisions of this act. and
sec g That all United States notes.
treasury notes OF 1880 and silver eertii-
| Gates presented for redemption shall be re-
| deemed from the redemption fund herein
existing laws, but the notes and certificates
| 80 redeemed shall be held in and consti-
| tute part of said fund and shall not be
withdrawn from said fund. nor disbursed.
| except in exchange for an equivalent
amount of tho coin in which said notes or
certificates were redeemed: but 10 invest
| the secretary of the treasury with author
| i;y TO carry out the provisions contained in
| this act. he is hereby authorized - ex-
| change any Of the funds In the department
| OF Issue and redemption 10 any fund which
| may be In the general funds In the treas
| ury department; provided. thai nothing IN
| this act shall he construed "a repeating
! that provision Of that act approved july Is.
/ $50 which provides that there shah be
| outstanding at any slime no more and no
! less ef the treasury notes authorized by
said act than he silver bullion and stand
ard silver dollars coined there and held by
| the treasury purchased by said notes.
Sec 8 That 5he secretary Of The treas
| ury be- and hereby Is authorized 70 receive
al the treasury any of the outstanding
bonds known as the 5 per cent bonds of
1904 and the s per cent. bonds OF 1870 is
sued respectively under the act approved
January r. iS-5 and the acts approved
July II ISIS ard she acts approved July IA
1870 and January ~ MS and TO ISSUE in
exchange therefor coupon and registered
bonds os the United States in such form,
"A n. may prescribe. IN denominations Of
$50 or some multiple 81 that SUM bearing
interest At the rate Of 21- Per cent per an
mum. payable setni-annuallv, and redeem
able after ten years at thu treasury AZ the
pleasure 81 TIE United States. ard the
bonds h~rehv authorized shah he pavah!e
pyircyDa' ana interest in United States
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