Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-16
Currency Bill Of the Secretary Of the
Treasury.
RETIRING fHE DEMAND OBLIGATIONS
Bank Notes to Be Substituted for
Government Paper.
PROPOSED ISSUE OF BONDS

Secretary Gage appeared today before the
House of Representatives to present a bill
embodying his views for a revision of the
currency, to explain and urge Its provisions
andrto meet any objections raised by the
committee. The Secretary was accompa-
MED by Judge OConnell, solicitor of the
treasury. Copies Of the Secretary's bill
were handed to members of the committee
and were scanned with great interest. Az
ter being introduced to the various gentle
men of the committee, Mr.. Gage began his
statement, speaking in an easy, converse
tional manner, and following notes. He
said in opening: '
1.-THE objects I have in mind in the series
of provisions offered by me are four in
number:
First, to commit the country more thor
oughly to the gold standard; remove, SO far
as possible doubts and fears on that point.
and thus strengthen the credit of the United
States both at home and abroad.
Second. to strengthen the treasury in
relation to its demand liabilities, in which
are included greenbacks, treasury notes
and the incidental obligation to maintain
on parity. through interchangeable
present large volume of silver certificates
and silver dollars
Third. to do this in such way as not
to contract the volume of circulation in the
hands Of the people.
Fourth. to take an initial step toward a
system of bank note issues without the
conditional deposit of public bonds as Sc
curity therefor. If we prosper as a people
the revenue of the government ought to be
somewhat in advance of it's expenditures,
and the public debt of the United States
gradually reduced and finally extinguished
Looking at the question widely. from my
best point of knowledge and experience, 1
feel that if these could be secured the con-
dition Of the government, in its relation to
the currency would be much safer and
stronger than now, and that through the
operation of national bank note currency
the commercial and industrial interests of
the United States would be greatly advan-
tagged
The Secretnry's Bill.
After this initial statement it was deemed
advisable to read the Secretary's bill in
detail and discuss it section by section.
The bill is follows:
A bill to provide for the refunding Of the
national debt for establishing a redemp
ton fund and a division of issue and re-
demption in the treasury of the United
States, and to modify existing laws re-
speeding national banks, and for other pur-
poses.
Be it enacted, etc, That there be estab-
lished in the Treasury Department, as
part of the Office of the treasurer of the
United States, a division to be designated
and known as the division of issue and re-
demption, to which shall be assigned. I'M
der such regulations as the Secretary of
the Treasury may approve, all records and
accounts relating to 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 the treasury of the
7 nj pd Sfute nj ak nm bo
of said division a redemption fund the
sum of $125OO0.000 in United States gold
coin and bullion and such further sums
OF standard silver dollars and silver bull
lion purchased Under the act of Congress
approved July IA, 1890. as shall equal the
silver certificates outside the treasury and
treasury notes of 1890 outstanding on the
date when this act shall take effect; and
thereafter the gold and silver coins and
bullion hereby transferred from the gem
eral fund in the treasury as herein pro-
vided shall be increased diminished, as
the case may be- in accordance with the
provisions of this act, and in no other way
Sec. 2. That all United States notes.
treasury notes Of 1890 and silver certifi-
Gates presented for redemption shall be
redeemed from the redemptiOn fund here
in provided, in accordance with the terms
of existing law; but the notes and GER
t:ficates SO redeemed shall be held in and
&C institute a part of said fund.- and shall
not be withdrawn from said fund nor dis
bursed except in exchange for an equva-
lent amount of coin, in which said notes Or
certificates were redeemed: but to enable
the Secretary of the Treasury more thor
oughly to carry out the provisions con-
tanned in this act, he is hereby authorized
to exchange any Of the funds in the di-
vision of issue and redemption for any
other funds which may be in the general
fund of the Treasury Department.: Pro-
vided, that nothing in this act shall be
construed repeating that provision of
the act approved July IA. 1880, which pro-
vides that there shall be outstanding at
any time no more and no less of the treas
ury notes authorized by said act than the
silver bullion and standard silver dollars
coined therefrom then held in the treas
ury purchased with said notes.
Sec. 3. That the Secretary Of the Treas
Try be, and he is hereby, authorized to
receive a. the treasury any of the out
standing bonds known as the five per
centum bonds of 1904 and the four per
centum consols of 1897. issued, respective
ly. Under the act approved January IA,
1875. and the acts approved July IA. 1870,
and January 20. 1871, and to issue in ex-
change therefor coupon or registered bonds
of the United States in such form as he
may prescI ibe, in denominations of fifty
dollars. or some multiple of that sum,
bearing interest at the rate of two and
OEe-half per centum per annum, payable
semi-annualy, and redeemable at the
pleasure of the United States after ten
years from the date of their issue. and
the bonds hereby authorized shall be pay
able. principal ard interest. in United
States gold coin Of the present standard
value and shall be exempt from all tax
alton by under state. municipal or local
authority: Provided, that none Of the
outstanding bonds shall be received at
valuation greater than their present
worth to yield an income of two and one
half per centum per annum, and that the
bonds hereby authorized shall be issued
at not less than par.
Section 4. That the bonds authorized by
this act and any other bonds of the United
States may be deposited with the treasurer
of the United States as security for the cir
culating notes of national banking asso-
Citations; and any national banking asso-
citation which may deposit the bonds herein
authorized to be deposited as security for
its circulating notes shall be entitled to re-
ceive from the controller of the currency
and to issue such notes to an amount equal
to the face value of such bonds: Provided,
that the aggregate amount of bonds de-
posted by any national banking associa-
ton, under any law, shall not exceed the
amount of its capital: and further provided.
that nothing herein contained shall be con-
stlued to modify or repeal the provisions
of section 5167 and section 5171 of the Re-
vised Statutes, authorizing the controller of
the currency to require additional deposit
of bonds, or OF lawful money, in case the
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