New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-18
Mr.. GAGE HEARD AGAIN.
FURTHER EXPLANATIONS OF HIS CUR
RENCY BILL.
MANY QUESTIONS FROM MEMBERS OF THE COM
AuTTEE ANswERED-THE MEASURE NOT
IN CONFLICT WITH THE ST. LOUIS
NEUTRALITY-SUSPICIOUS. OF

rency bill before the House Committee on BANK
ing and Currency to-day. Chairman "aiAer
had left the city. and Mr. Brosius, or FennsylVa-
MA presided Before the bill proper Was taken
up some semi political questions were asked
Mr. HILL Of Connecticut called Mr. cages at
tention to the statement made yesterday that
the first purpose Of the bill was TO commit the
country TO the gold standard
"you are recognized as a Republican" said
Mr.. Hill. addressing the Secretary and you are
familiar with the financial platform of the Re-
publican Nationa, Convention at st. Louis. DO
YOU consider that this purpose of more firmly
fixing the gold standard on the country con-
ficts with the principle Of the st. Louis plat
form?"
mo sir" replied VT Gage mot as look at
the principle C bimetallism. Bimetallism must
mean one of two things: Either it is two KINDS
of money Of unequal value circulating side oy
side bv reason Of the exchange or the less
valuable for that OF greater value or else TWO
kinds Of money Of such intrinsic equahty OF
value that they will circulate naturahy sue
by side We have a bimetaliic currency IN the
United States now A firm establishment OF the
gold standard with such interchanseaolh'y with
silver as will make It acceptable on an equah'y
with gold will maintain this bimetalilsn' the
sar,a as II has existed for the last eighteen
years"
The Secretary went on to say that this in no
way pretudiced any steps that might be taken
70 bring silver up 10 higher standard OF value
The bill. however, was desigred to give such
confidence in the financial ability OF the Gov
ernment that the determinations against Sill
yer would largely decrease.
Mr Cox OF Tennessee asked II the result OF
Mr.. Cages bill eventually would not lead 10
one kind OF paper money bank notes ano no
silver except subsidiary silver.
"There is nothing IN the plan to operate to
that extent now" answered the Secretary IL
,s In that direction, and with further leglsia-
ton developing It 1t might ultimately lead 10
such a result But l would not say that silver
would be restricted TO subsidiary silver. l would
say a system Of silver which would be subordi-
nate II is subordinate now.
THE UNSECURED CIRCULATION.
After this diversion to the silver question the
consideration OF the bill by sections was re-
su ned at Section 7. where the discussion closed
Yesterday This section provides that on the
deposit by a National bank OF United states
bonds United States notes, Treasury notes or
1890 or silver certificates to an amount OF not
less than 30 per cent Of its capital. It shall re-
ceive National bank notes. IN addition 10 the
90 per cent otherwise provided to the amount
notes not being secured by the deposit OF bonds
or notes but by the assets OF the bank and
the Government guarantee
Mr.. Gage referred 20 the advantage ~ this sd
ditionsl unsecured circulation In Swing an slas-
ticity at points where II was most needed He
showed from returns of the Controller
office how small percentage - i7sa CAME ff.H
National banks. ana urged ma thIH .ra.
circulation would entsn nr 'r.Hrsf
CATION on the Goyernw.rt tf raf
guarantee snA this eaaif tr -ty
email tax sn ths tsrh
fund -wlands, OF
In snsrrer f. s.......r ... the amount OF
N.r.fa ffr a.... &c bill would reach
u.f..|.a mem were issued. These
ff REGULATION. bank notes could
nat amount Besides these. the
- per cent OF unsecured circulation
give further issue Of bank notes Of
Jout $300000000 But that vast issue was
merely the creation of a spectre. and was not
a reality. The banks could not get all the bonds
and use them for issuing bank notes. On the
contrary. Government bonds were always taken
largely by private investors trust companieB
Insurance companies and people across the
water. Any effort by the banks to absorb all
the bonds would affect the price as to de-
feat the object in view And this also would
a check to the expansion Of bank cir
culation.
Mr.. Newlands referred to gold contracts"
and asked the Secretary's view Of them.
Mr.. Gage said he aid not think 1t desirable to
interfere with private contracts Of this charac-
ter any more than was necessary. To Mr.. Prince,
OF Illinois, he explained that his expression
gold and other legal money" used in the bill
meant no reflection silver or other classes
Of money The other legal money included silver,
and the expression merely served TO cover a
well-understood term
The extent to which drains on the Govern
ment's stock Of gold would result under the
operations Of the bill excited much discussion.
Mir Gage said that all redemptions would be
made in gold or its equivalent
Mr.. Fowler, Of New-Jersey said this opened
a serious question. The Secretary provided for
the issue Of bank notes on the deposit Of United
States notes (greenbacks), Treasury notes or
silver certificates The result, he declared
would be that the most undesirable form-sil-
yer certihcates-would be deposited and inn
pounded and their place taken by National bank
notes. The latter drew gold: the former did not |
hence MIR. Fowler asserted. the Secretary pro- |
posed increasing the drain on the gold supply
ar cage answered that II was easy to con- |
;uIe up hypothetical objections. but he did not |
I'm I'm a. uls one as serious. While II was true |
ula; sH.er certihcates might be deposited and |
% U'n no.es e issued against them, yet any Secre-
oay ;, W the treasury on receiving these silver
iln SolIncsres, n would exchange them for green |
oaons' S' iIeasuiy notes and other forms OF de- |
manu- NAM @ Hotes wnich served to drain gold. These
other forms OF notes We're always coming into |
th the Ire treasury s and they could readily be ex-
vnSn, i c une sliVer certificates. and thus the
redemption fund could be built M OF the gold
drawing class of Government notes.
REDEMPTION OF BANK NOTES
Proceeding to Section s, which nrov,des for
deposit by the banks OF a sum equal 70 10 ner
cent Of the circulation and also pIedpss N.
faith OF the United States to the redemptIon ~
the bank notes. Mr.. Gage said the later ,oat,r.