New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-17

! TIL, ono objection to il thus far seems 10
be that the advent Of n different President or
Sacrotorv or Congress might deprive the pan OF
| nr,ctical usefulness Indeed, one suggestion IN
tho plan of Mr.. Gage seems to open the ques-
tion whether the two departments could DE IN
fact kept separate in all contingencies, since 1t
nrovIdos for exchange Of one kind Of money in
tbe Treasury for another kind In the issue De-
nar,ment. But in the end all such arrange
ments must depend exactly as the soiVcncy OF
the Treasury and the soundncss or the currency
now depend, upon the willingness or the people
to sustain an upright and wise policy. If they
remain willing and determined no system can
thwart them. and If they are not willing ana
determined no restraints can bind them. No
man who believes in sound money will question
the entire propriety Of Secretary Cages pro-
posal to require redemption In gold and pay
rnent of bonds III gold: but it Is now, as 1t was
in the last Congress. questionable whether bill
TO that end can be passed IN the Senate.
The proposal to take UP 5000 100000 of legal
tenders through National banks wishing to ex-
tend their circulation TO place the notes In the
Issue Department and give the banks 2l2 per
cent gold bonds for them. aud TO give them for
Issue instead s200, 100000 OF bank notes, with
the pledge of the Government for their re-
demption, IS obviously not a contraction Of the
currency. II IS Of course, questioned in Con
gress whether Government will gain in any
way to compensate for ts bonds TO pay 5000,
600 in gold each year, and in committee it wls
urged that the substitution OF a banknote
guaranteed by Government Cor a lega-tender
note issued by Government, would not lessen
the demand obligations Of the Treasury, but
would leave TO the banks the necessity Of main
tanning the parity Of gold, silver and paper
In circulation. On questions Of this nature,
doubtless, Secretary Gage will explain more
fully at the continued hearing to-day. His
already shows that his great practical
experience as banker enables him to meet
many Of the objections which are
raised to his plan. On one point fuller ex-
PLANTATION is perhaps desirable to remove the
difficulty Of those who think the volume or
Taper circulation too large already, whereas the
Issue Of banknotes in place Of S2OO,OOO'OOO
Government notes surrendered to the Issue De-
partmcnt and the additional issue OF more
banknotes without bonded security, but with
the guarantee Of redemption by Government,
would appear to initiate the paper circulation.
The taxation Of 2 per cent on such unsecured
issues would In ordinary times limit them, but
il is well to have clear assurance that the limita
ton would serve In times Of tendency toward
imitation.
The plan Of the Secretary merits the careful
consideration which 1t invites. At the same
time its examination makes the fact clearer
than II was beforc that no other measure OF
currency reform has as much chance Of success
ut this session as the simple measure proposed
BY the President. II all those who sincerely
seek such reform concentrate their efforts reso-
lutely In support OF the Presidents suggestion,
the session may not be fruitless. But If they
scatter their forces, each man urging the
measure which seems to him nearest perfec-
ton, while the opposition stands solidly against
any and every measure the right direction
not much good can be expected.