New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-17
TIE BILL OF SECRETARY GAGE.

The bill submitted by Secretary Gage and
offered in the House yesterday is avowedly In.
tended rather to elicit discussion and to pre-
pare the way for what the Secretary regards as
q comprehensive measure Of reform than with
expectation that 1t will be adopted at this
sion. Secretary Gage Is too able and experienced
10 look for It's adoption, and the single fact that
the President, while commencing the recon-
mendations Of his Secretary to the considera-
tlon Of Congress, proposed a much simpler meas
ure. and one less likely to excite differences OF
opinion makes ii clear that no action at this ses-
sion along the whole line Of the Secretary's sug-
gestions is to be expected. No one can read the
statement Of the Secretary before the committee
Of the House. in connection with the bill submit
ted, and his annual report explaining It's pur-
pose, without giving high praise to Mr. Gage for
his frankness and complete sincerity; and his
entire patriotism Of purpose none will question.
He thoroughly believes, beyond doubt, that the
plan he proposes is fitted to the needs Of the
country. That there are many who have not the
same conception Of the public needs or of the
right remedy, he cordially recognizes. But he
does not seek IN the least to conceal from view
those features Of his plan which NAV meet
greatest opposition.
measure that the ultimate purpose as stated by
Mr.. Gage himself should be clearly understood
before Its details are examined In his initial
statement he said the bill was "a first step tow.
"ard a system Of banknote issues without the
conditional deposit Of public bonds as secur-
'Ity." Later he said In answer to inquiries. as
reported. that the measure was "a first step
toward withdrawal Of the Government guar
"antee for banknotes, and interdependence be-
tween banks and the Government" These
statements are consistent and honorably frank,
and challenge the attention OF those who do not
desire TO take first step in that direction. To
Mr. Gage. as to many bankers it appears
the only wise and safe solution Of existing
difficulties but his annual report shows that
be is not blind to existing "prejudces regard
ing banks" and is aware that the point Of the
prejudice is the popular feeling that the volume
of circulation should not be within the control
Of those interested as lenders. II would have
been easy for a less candid and manly official to
gloss over the tendency of his plan, and it is
greatly TO the credit of Mr. Gage that he invites
public judgment OH precisely that point II IS
easy to see that the provision for a circulation
IN excess Of the amount secured by bond de-
posts is designed 10 accustoiu the public mind
10 a new estimate Of the value OF notes, not
according 10 the bonds behind them, but ac-
cording TO the com ctcnce and soundness Of the
banks from which they emanate. lie explains
that as the people are now accustomed to look
for bonded security for notes. he retains that
feature for the present. but reduces the interest
on bonds held MS security TO 2la per cent Some
bankers and fnanclers of experience already
question whether such bond might not fall be-
low par. In case OF foreign disturbance or any
other severe financial strain. and fear that II
that should happen the disrust Of people long
accustomed to 10 per cent margin between the
par value Of per cent bonds and the amount
Of notes issued against them might render the
proposed plan insecure. Such doubts the Secre-
tary presumably expects to meet and remove
before the measure he proposes can be passed
But he manfully makes It clear that bonded &c.
curity Of any kind does not seem to him per.
manent part Of a wise system Of currency
The proposal to create a separate department
Of the Treasury for Issue aud Redemption has
met the approval Of many eminent huanciers