The record-union., 1897-12-17
Presents a Bill EmhOdying His Views on
the Subject.
Explains It's Provisions and Urges
Action in the Matter-Favors
Committing the Country to
Gold Standard-FuIl Context OF
the Bill.


House of Representatives to present a
bin embodying his views for revision
of the currency, to explain and urge its
provisions, and to meet any objections
raised by the committee. The Secre-
tary was accompanied by Judge OCon-
nell, Solicitor Of the Treasury.
Copies of the Secretary's bill were
handed to members of the committee,
and were scanned with great interest.
After being introduced to the various
gentlemen of the committee, Mr. Gage
began his statement speaking in an
easy, conversational manner, and fol-
lowing notes. He said:
The objects 1 have in mind in the
series of provisions offered by me are
four in number:
"First-To commit the country 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, treas
ury notes, the incidental obligation TO
maintain on a parity. through inter
changeability with gold so far as may
be necessary. the present large volume
of silver certificates and silver dollars.
"Third-To do this in such a way as
not to contract the volume of circula-
ton in the hands of the people.
"Fourth-To take an initial step tow
ard a system of bank note issues, with
out the conditional deposit of public
bonds as security therefor.
If we prosper as a people the rev.
enues of the Government ought to be
somewhat in advance of its expendl-
lures, and the public debt of the Unit
ed States gradually reduced and finally
extinguished Looking at the question
widely, from my best point OF knowl-
edge and experience, L felt il these
could be secured the condition OF the
Government in its relation to the cur
rency would be much safer and strong
er than now, and that through the
operation of national bank note cur
rency the commercial and industrial in
terests of the United States would be
greatly advantaged."
Turning to his notes, Mr.. Gage pro-
ceeded extemporaneously as follows:
LAS to the first proposition-to COM
nit the country more thoroughly to the
gold standard, remove as far as possi-
BILE doubts and fears on that point,
and thus strengthen the United States
both at home and abroad-I would say
that the proposition to refund the
bonded debt Of the United States, now
payable in coin, into bonds bearing on
their face a lower rate of interest and
payable, principal and interest, in gold,
is measure directed to that end 1t
costs nothing to the Government
whether so far as. the refunding of it is
concerned, except the expenditure nee
essary to print the bonds and do the
clerical work. 1t takes ambiguity out
of the relations of the Government to
its creditors. 1t gives, l believe a
strength and security and power to the
whole commercial and industrial sys-
TEN of the United States, and the meas
ure. as it is prepared here in the bin,
in my opinion, will accomplish that OBJ
ject
THE other measures which are before
you. which I am now ready to be ques-
toned about, have been drawn to ac-
complish not only the objects named
but the various purposes already de-
tailed by me. If they are worthy OBJ
jects they ought to be recognized and
secured. If they are unworthy objects
they ought to be rejected, or if the
manner of securing them is not a wise
one, as I have outlined it. the manner
ought to be rejected or reformed or i'm
proved"
The discussion brought from Mr.
Gage another general statement Of all
the demand obligations Of the United
States. He said he spoke from the
experience of a practical banker, in
saying that all the demands against the
Government would not be presented at
one time. 1t was tenet of banking
that all demands did not come at once
If they did the banks would not last
long. For that reason, it was neces-
sary only to provide against a small
percentage of the demand
Mr.. Jordan, the sub-treasurer at New
York, had said to him that all the
trouble IN redemption was caused by
the last S200000.000 Of demands. The
Secretary concurred in this view. If.
therefore, 800 000,00o was set aside in
a redemption fund. II would to a large
extent relieve the demand
Newlands Of Nevada argued that a
contraction of the currency would oc-
cur under the Secretary's bill. If the
banks surrendered their notes and took
the refunding bonds which were pro-
posed as a basis for the notes
Mr.. Gage conceded that this might
occur, but he thought the chances of IT
We're exceedingly remote
Cox of Tennessee made the point that
under the bill banks would get circu-
iation up to the par value of bonds de-
posted at reduced rate OF interest,
wnlle at the same time the Government
was to pay 2l3 per cent. interest on the
ponds which the banks got their circu-
lation with.
af. cage answered that the proposal
OF ms Dill was but a first step. It had
10 recognize the fact that the national
banking law provided deposits of bonds
as the basis Of circulation. That being
the case. he had deemed II wise as a
1rst step to reduce the interest on
the bonds. When that desirable end
was accomplished, further stems could
be taken toward a withdrawal OF the
Governments guaranty for bank note
issues and the interdependence between
the banks and the Government
The hearing had Continues ,,ail
l2:3o. and as several members desired
to go on the floor OF the House II was
arranged that Mr. Gage womb rasune
his hearing before the committaa AZ 10
o'clock tomorrow.
In the course of his statement Mr..
Gage said his bill would he sunnle
mented at a later day by another meas