The times., 1897-12-17

= blil IicBd-eu bS oeCftldIy bd5H1 anu
embodying the views expressed Dy him IN
his annual report, a $ printed in The Times,
was introduced yesterday by Mr. Walker,
chairman of thc Committee on Banking and
Currency.
BEFORE the bill was introduced, Mr.. Gage
appeared befote the committee and ex-
plaiued its provisions. He said.
we have got ' he SAID, 1890, 10000
Of demand obligations of all kinds that are
outstanding. Oftnis sum thereis work ms
balance OF S5U.0Uo,O0o Of demands in
the Treasury. We haye charge of this,
and il will not trouble Us. There is also
/ SlU,OO0,000 OF demands, the per cent
charged TO national banks, which also
will not bother us. There is also a loss OF
! from SiU,0OO,O0O TO $50, 100000 from
various causes and this viii not trouble
US. put the figure at 100000, which
makes a total Of S7O,O0O,00o which may
be deducted from the whole amount leav-
iug SS6U, ,UuO, 900 to be looked after.
Now l propose to take out Of his
amount 5000, 100000 of these demands,
thereby reducing the amount 10 S660.p0G,
600, aud that viii make 5000 900 coo
less of den and Obligations to trouble us.
! also propose to make the National banks
put up 10 per cent on $500 900, 600.
which VIII reduce our liability to S6I0.-
coo ,00O and fOr the Government 10 munup-
ulize the use Of all demand notes above
$40. There are S@46 100000 of deIG md
obligations under SO outstanding, and
%. 600 600 silver dollars. This makes
S39s 10000 of small denominations actu-
ally IN circulation. Two hundred and
fifty million dollars OF this sum is 80 firmly
tied up hat no Que can getit Itis hidden
in the pockets stockings, broken crockery
and other hiding places Of the people who
hoard it mp
That leaves S36O.OOO, 600, which is
divided amcHc 10000 banks in all parts
of the country ana in private han Is, and
we have Sl25. 100000 OF gold TO redeem
it. theoretically, IL could all be pre-
seuted at the same time for redemption.
but practically .t never could happen
should such be possible, there would not
zoe a bank open today. There is no dan
ger OF this $500 900 900 being presen. ed
al or near the same time for redemption
Mr.. Jordan, assistant treasurer at New
York Informs me that he is convinced ah u
IL il the last 100000, 600 Of demands
that has put us 10 shame.
In a separate bin TO be prepared which
viii embody the views OF the p resi- lent It
VIII lie provided that the Secretary Of the
I Treasury be empowered TO bOrr0w " any sum
not exceeding Slo0,00O.OOO for one year
as lie ma deem proper to meet eEigan lies.
| This win be a power that win seldom e
| exercised Now with the plan I have out
| lined and the practical liability which IL
1 would make the Government, l would us
! leave run the finances Of the Government
as those OF a bank for the liabilities WOULD
/ be d greater"
! in regarG 10 tlr' redemption nf bonds, ex-
| ceptinG those issued in 1929. Secretary
Gage said the object OF his plan is TO secure
| circulation, and that il viii require $50
! coo 600 more Of face value to redeem the
! outst andmg bonds designated, at a raie
Of , IL pcI cent interest. This would he
| necessary a 5 al equity o the bond holder.
4 His plan is moi an intereSt-saving one bat
/ TO secure 4 uniformity Of long time bonds.
These bonds are TO lie issued from time
/ TO time and are 10 be substituted for
/ Treasury notes and silver certificates aad
charged Go national banks at not less than
par Cnited states notes. Treasury uoycs
]
| part Of the redemption fund butthe an Junt
shall rot exceed 5000, 100000.
The object DC this, the Secretary eN
planned. Is 10 lay UP 100000 900 Of green
| backs In the Treasury until some one re-
| deems them in gold. To take this sun
| direct from the circulation, he said, woulG
| he contraction Of ,he currency 80 violent
| that ;he country could not endure 1t: but
4
discharge its obligations on demand, ana
| TO enable this to be done without an.
/ noyance he had provided his plan of a
| substitution OF bonds through the banks
| He predicted that within six months from
the passage Of the bill he proposes. the
! banks would bring in gold and exchange
it for grecnhaCks. The ability Of the
| Government 20 maintain a parity, he
| said, depended on the quantity of gold
| il possessed. Ranks, he declared, wolIl
he compelled TO pay gold to people il
| asked for, and if 4 bank refused the Gov
/ eminent could take possession Of it lnC
close it up. Silver can only be kept OF
a parity 10y exchanging gold for it,
If inquired Mr.. Brosius Of Pennsvl
vania, lit is an advantage to the Govern
ment to withdraw S20o,OOO,O 900 green
backs, would it not be a greater advantag,
To withdraw them all?'
In one respect, yes, replied Secretar,
Gage.
If the banks" continued Mr. Brosils
refused 10 redeem III gold, would we theI
go on silver basis?'
Yes, Mr. Gage replied, and then, check
ing himself, he said thatonly in theory con,
the $500, 100000 Of demand obligation
be presented at or near the same time 70
redemption. PractiC ally such thing coll,
I D.