The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-17
CAGES -FOUR OBJECTS
Plainly Stated Before the House
Currency Committee.
FIRST IS GOLD STANDARD
ALL DOUBTS TO BE DIsPELLED
ON THAT SCORE.
The Other Propositions Lead to the
Absorption of the Currency by
National Banks Without the De-
post of Bonds as seourity-Full
Text of the Bill.


appeared today before the committee
oil banking and currency of the house
of representatives, to present bill en-
bodying his views for a revision of the
currency, to explain. and urge its pro-
visions, and to meet any objections
raised by the committee. The secretary
was accompanied by Judge O'Conneu,
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 I have in mind
in the series of provisions offered by
me are four in number:
First. to commit the country thor
oushly to the gold standard; remove,
Sc 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 parity, through interchange
| ability with gold, so far as may be nee
essary, 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 to-
ward a system of bank note issues
without the conditional deposit of pub
lie bonds as security therefor
IF we prosper as a people, the reVe-
nue. Of the government ought to be
somewhat in advance of it's expendi-
lures, and the public debt of the Unit
ed States gradually reduced, and fin
ally extinguished. Looking at the
question widely, from my best point
| of knowledge and experience, feel that
if these could be secured, the condi-
/ ton of the government, in its relation
to the currency, would be much safer
and stronger than now, and
4 that through the operation of a. ma
tional bank note currency, the CONNER
cial and industrial interests of the
/ limited States would be greatly adj
| vantaged."
4 Turning from his notes, Mr.. Gage
!. proceeded extemporaneously as follows:
GOLD STANDARD.
CAS- to the first proposition-to com
nit the country more thoroughly to the
gold standard, remove, as far as pos
sible, doubts and fears on that point,
and thus strengthen the United States
both at home and Abroad would say
that the proposition to refund the bond
ed debt of the United States, now pay
able in coin, into bonds bearing on
their face a lower rate of interest. and
payable, principal and interest, in gold,
is a measure directed to that end It
costs nothing to the government,
whether, so far as the refunding of it
! is concerned, except the expenditure
necessary to print the bonds and do
the clerical work. 1t takes ambiguity
out of the relations of the government
to its creditors; it gives, believe, a
strength and security and power to the
whole commercial and industrial syS-
tenn Of the United States, and the
measure, as it IS prepared here in the
bill, in my opinion, will accomplish that
object. The other measures which are
| before you, which [ am now ready to
be questioned about, have been drawn
to accomplish, not only the objects
named, but the various purposes al
ready detailed by me. If they are
worthy objects, they ought to be .recog-
niZed and secured If they are I'M
worthy objects. they ought to be re-
jected, or. if the manner of securing
them is not wise one, as have ont
lined it, the manner ought to be reject
ed or reformed, or improved
was
deemed advisable to read the secre-
tary's bill in detail, and discuss its re-
lief by sections.
PURPOSE OF BOND SECTION.
A wide range of discussion was held
on section of the bill. In answer tc
inquiries, Mr.. Gage said it's genera
purposes We're the same as set forth by
him.
Mr.. Gage said the only purpose of the
bond section WAS to refund outstand-
ing bonds for low interest bonds pay
able in gold. This would not reduce
the gross amount of the debt, but il
would make saving on interest which
the secretary calculated at Sl0, eco 00(
annually. AT present the government
paid higher rates on some Gifts bono
issues He thought it possible thai
these could be taken in time at a rate
, OF interest even below 2 per cent, but
this proposed 21a per cent rate was al
least step toward reducing the inter.
est charge.
, Mr.. Gage said he had excluded from
his refunding plan the bonds issued il
1885, although in his recommendation t.
congress these bonds We're erroneously
included. He said he preferred to le
these bonds alone, as a question hat
been raised at the time of their issut
; as to their payment in gold, and he die
not wish to enter upon that question
The bill would exclude all the bonds is
sued under the Cleveland administra
ton.
Mr.. Gage explained in detail the pla1
of issuing national bank notes TO
United States notes, treasury notes ant
silver certificates. and the covering o
the latter demand notes for refundins
| bonds. He said the purpose of this wa
to accumulate 5000, 600, 600 of the deman,
: obligations. placing them aside, wher
{ they would relieve to some extent tn
} demands from the treasury It was es
} sential he said, that these demand OBJ
legations should be materially reduced
r At the same time he did not coaside
r it safe to contract the currency by $500,
600, 600 at one stroke and for that rea
son he had provided for issues of ma
tional bank notes to fill the vacuum
PERTINENT QUESTIONS.
Mr.. Brosius asked how the parity o
the metals could be maintained if tn
! demand obligations We're withdraw
from circulation and accumulated i,
! the treasury. Mr.. Gage said Their
would be ample demand notes out
standing beyond the 5000, 000,000
Mr.. Brosius asserted that the bank
would be called upon to maintain tn
4 parity,sand that if they were unable t
e do so. the country would at once b
4 forced to a silver basis.
Mr.. Gage smilingly remarked that h