The times., 1897-12-18
3IE. COX'.s REPARTEE.
II EHlivens Meeting of the Bank
ing and Currency Committee.

ing and Currency Committee.
Free coinage OF silver cropped out at |
the meeting OF the Committee on Banking |
and Currency yester day in manner wholly !
une xpected by Secretary Gage, who had |
for two hours been explaining the pro-
visions Of this bill for 5ne contraction NJ |
the currency. II happened IN this way. |
Mr.. Fowler. Republican OF New Jersey. ia |
terrurted the Secretary 10 ask what he
denomiL 6ted Hypothetical question. He
said.
II the next Congress should be free
silver Congress 8"
That is not Hypothetical question
inJerjected Mr.. Hin, OF Connecticut.
No" quickly chimcd in Mr.. Cox, Of
Tennessee, THAT simply il a statement
OF fact This sally provoked loud laugh
ter, in which Secretary Gage was forced
TO join
Continuing, Mr.. Fowler asked if free
silver Congress could not overcome the 50
called good features OF Secretary Cages
| bin.
with th- aid OF the President ana the
! arrangement proposed We can get through
all right" replied the Secretary.
During Secretary Cages remarks before
| the committee, Solicitor Of the Treasury
| O'Conneu sat beside him as coach. and
! frequently made pertinent suggestions.
! Mr.. Walker, or Massachusetts was absent
/ and Mr. Brosius presided.
/ Tho thirteen sections oS the financial bill
/ We're taken up senadm, and in their con
| sideratiUn, among other Things, Mt. Gage
| said oil the first section, which permits ma
tional banks to take out additional circu-
| Iating notes 10 the amount Of % per cent,
based upon their assets, in case Of anY lie
! fault in the redemption OF these notes Blythe
| banks, tie bill provides that the Treasury
shall pay them from fund derived from an
annual tax Of percent paid by the banks
on the circulation. SO far in the history
OF Tire system, Mr.. Gage said, 800 banks
have failed.
Had tney been closed out by the Govern
ment, as contemplated in his bill, it is as
| timateG that tile Government would have
been Obliged to maze good a CefiCit Of
| $4,000; but against this, had the BANKS
taken ont the circulation provided for n
the bill for the period of their average
| life-eight years--they would have paidintO
the Treasury $3.50. 900. The theoretically
possible limit OF circulation Of national
bank notes under the bin, Secretary Gage
said, would be nearly 81 800 900 GOO
Tne actual probable circulation would he
$3.50 600, an increase Of 1890 900.
coo over the present stock.
In reply to a question ny Mr.. New!ands,
OF Nevada, regarding debt pa ying qualities
of several classes of money, Mr.. cage
said that in his opinion the tendency 10
make long term contracts pa yable in gold
was due to Ciistrust On the part OF the
people of the ability Of the Government
to maintain the parity of all money. 1t
would not he desirable for the ioyer I'M MT
to prohibit the enforcement OF these gold
contracts: il was not desirable for the
Government 10 interfere any further than
is absolutely necessary between citizens
in making contracts.
Secretary Gage said co Mr.. StalIings, Of
Alabama, that his bin did not require the
redemption OF national bank notes in
gold, because nc government should recog-
nize any money as Of a higher or more
desirable value than it's own obligations.
Concerning the proposed increase of
redemption fund from to 10 per cent
the Secretary said it swas his opinion
that the change should be made; the banks
could better afford to pay 1O per cent
under tho new conditions than per cent
| uAitltI tte SSlSiiilS Id ~ Al NdS his I'M
preston that suggestion of Mr.. HILL
OF Connecticut, was good one, that the
redemption fund should not be counted
against the deposit reserve OF banks.
Profit oD circulation, he believed, would
be increa sed under his bill.
He added that the Treasury Department
was spending $4,000 year trying 60 in
duce the people to take silver dollars, but
they will not have them, beyond certain
t sum, about $4,000 900. lie feared that
in the near future the Government vas to
be exposed &c the menace of Illicit silver
dollars to a dangerous degree. Continuing
he said relative to section that all
, bank notes under 81 would be destroyed
and larger notes issued to replace them
. for the Government wanted to monopolize
, these notes. AS to the tax on banks pro-
: vided for il section 2, Secretary Gage
said he believed national banks should be
taxed for privileges they enjoy
The Secretary concluded his remarks
! by saying i'll regard to small banks il
agricultural districts that have capita
OF S25, 900, they could easily accept proin
isSory notes for six months and meet sight
= demands. After the Secretary had con
Guided his remarks the committee thanked
him, and Adjourned until January 2.
TO CURE a COLD IN ONE DAY