The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1897-12-23
MR.. GAGE AND HIS BILL.
The Secretary Presents His Meas
ure for Currency Revision.
Explains His Views At some Lenxth
Before the House Committee ON
BankinH-Full Text of
the Bill.

Banking-Full Text of
the Bill. :.
Washington, Dec. II. - Secretary
Gage appeared Thursday before the
committee on banking and currency of
the house of representatives to present
. bill 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 O'Con-
nell, solicitor for the treasury. Copies
OF the secretary's bill were handed to
members of the committee and were
scanned with great interest. After be-
ing introduced to the various gentle
men of the committee. Mr.. Gage began
his statement. speaking in an easy. con-
versational manner. and following
notes. He said:
Secretary Gage. Statement.
The object have in mind in the series
OF provisions offered by me are four In
NUMBER: First, to commit the country
more thoroughly to the gold standard, re-
move. 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 a parity, through interchangeability
with gold. so far as may be necessary.
the present large volume OF silver Ger
tiflcates and silver dollars.
Third. to do this in such a way as not
to contract the volume OF circulation in the
hands OF the people.
Fourth, 10 take an initial step toward a
system Of bank note issues without the
conditional deposit of public bonds as Sc
curlty therefor. If We prosper as a pco-
pie the revenue Of the government ought
to be somewhat in advance Of its experdi-
lures and the public debt of the United
states gradually reduced and finally ex-
tinguished. Looking at the question wide
ly, from my best point Of knowledge and
experience. 1 feel that If these could be
secured the condition 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 adVantaged.'
A wide range of discussion occurred on
section of the secretary's bill. In answer
to inquiries he said its general purpose
was the same as that set forth by the
president.
Mr.. Gage said the only purpose of the
bond section was to refund outstanding
bonds for low interest bonds payable in
gold. This would not reduce the gross
amount or the debt, but 1t would make a
saving on interest which the secretary
roughly calculated at s10,OvO,OOO annually.
Mr.. Gage explained in detail the plan Of
issuing national bank notes for United
States notes, treasury notes and silver GER
tifcates. and the covering of the latter
demand notes for refunding bonds. He
said the purpose OF this was TO accumulate
$2O0OOO.O0O of the demand obligations, plac-
Ing them aside where they would relieve
to that extent the demands on the treasury.
Full Text Of the Bill.
Following is the bill in full:
"A bill to provide for the refunding of
the national debt, for tablishlng a re-
demption fund, and division of issue and
redemption in the treasury OF the United
States, and to monty existing laws re-
speeding national banks. and tor other pur-
BE it enacted. ETC., that there be estab b.
lished in the treasury department, as a
part Of the office OF the treasurer of the
and known as the division Of issue and
redemption, to which shall be assigned.
Of The may app % ne ali
and accounts relating TO- the issue. re-
dem9tio9 and p exchange as hereinafter pro;
ytded or the several classes OF United
States paper money. There shall be trans
ferred from the general fund in the treas
the books OF said division as a redemption
fund the sum Of s125, 900. 900 in United States
s9a coin sf and 6Y 13ne ana such fuher
yer bullion purchased under the act of
Juy H. $780, shall
standing on the date when this act shall
syer oG An6 the god ana
from the general fund in the treasury as
herein provided shall be increased or d.
ance with the provisions of this act and
In no other way.
Redemption of Notes.
Sec. 2. That all United States notes,
treasury notes OF 1880 and silver ,certiti-
Gates presented for redemption shall be
redeemed from the redemption fund here
In provided. in accordance with the terms
Of existing laws. but the notes and GER
tificates so redeemed shall be held in and
constitute ,;e. part Of said fund. and shall
lent amount Of the coin in which said notes
able the secretary of the treasury more
thoroughly to carry out the provisions
Sed tn exchanse any ne Of IS Dys ut
division Of issue and redemption for any
other funds which may be in the general
that nothing in this act shall be construed
as repeating that provision Of the act APP
there shall be outstanding at any time no
hd PS 1s ia d the tS yye
therefrom then held in the treasury pur-
chased with said notes.
Exchange of Bonds.
Sec. 3. That the secretary OF the treas
ury be and he is hereby authorized to re-
ceiVe at the treasury any Of the Outstand-
ing bonds known as the five percentum
bonds Of 1904 and the four percentum con-
soils Of 1907 issued respectively under the
act approved January IA, 1875, and the acts
approved July IA, 1870, and January Co.
1871, and to issue In exchange therefor
coupon or registered bonds Of the United
denominations Of $50. or some multiple Of
that sum, bearing interest at the rate OF
annually, and redeemable at the pleasure
OF the United States after ten years from
the date of their issue, and the bonds here
by authorized shall be payable. principal
and interest, in United States gold coin
Of the present standard value, and shall
be exempt from all taxation by. or under
state, municipal or local authority, pro-
vided that none of the outstanding bonds
shall be received at a. valuation greater
than their present worth to yield an in
come Of 2h percentum per annum, and that
the bonds hereby authorized shall be issued
at not less than par.
Issue of Notes.
Sec. 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 circulation notes Of national bank
Ing associations; and any national banking
association which. may deposit the bonds
herein authorized to be deposited as sc.