Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-12-17
HAVE A GOLD STANDARD
That is Secretary Cages Definition Of Bimet.
allsn,.
PURPOSE OF THE NEW GAGE BILL


Washington, Dec. 17.-Secretary
Gage resumed his exposition of his ex-
tensive currency bill before the House
committee on banking and currency
today. Chairman Walker had left the
city and Mr. Brossius, Pennsylvania,
presided.
Before the bill proper was taken UP,
some semi-poitical questions were
asked. Mr.. Hill Ulep.. Conn., called
Mr. Cages attention to the statement
made yesterday that the first purpose
of the bill was to commit the country
to gold standard.
You are recognized as n Repub-
lican." said Mr.. Hin addressing the
secretary. land you are familiar with
the platform of the Republican party
at St Louis. DO you consider that this
purpose Of more firmly fixing the gold
standard on the country conflicts with
the plank OF the st. Louis PLATFORM
mo, SIR responded Mr.. Gage, mot
as l look at the question of binetal-.
lism. Bimetallism must mean one of
two things: either 1t is two kinds of
money of unequal value circulating
side by side by reason of the exchange
of the less valuable for that OF the
greater value. or else two kinds of
money of such intrinsic equality of
value that they will circulate naturally
side by side. We have "a blmetallic
currency In the United States now. a
firm establishment of the gold stand
ard. with such interchangeability as
will make 1t interchangeable on an
equality with gold will maintain this
blmetallism the same as It has existed
for the last eighteen years"
The treasurer went on to state that
this in no way prejudiced any steps
that might be taken to bring silver up
to higher standard of value. The
bill, however, was designed to give
such confidence in the financial ability
of the government that the discrim-
nations against silver would largely
decrease.
Cox (Dem., Tenn, )asked If the result
of the Gage bill eventually would not
lead to one kind of paper money-bank
notes-and no silver, except subsidiary
silver.
There is nothing in this plan to CO.
operate to that extent now" answered
MIR. Gage. 1T is in that direction and
with further legislation developing it
might ultimately lead to such a result
But | would not say that silver will be
restricted to subsidiary silver. / would
say n system of silver which would
be subordinate. 1t is subordinate
now"
After this diversion to the silver
question. the consideration of the bill
by sections was resumed at section T.
where the discussion closed yesterday
This section provided for an increase
of national bank note circulation to be
secured not by the deposit of bonds or
notes but by the assets of the bank
and the government guaranty. Mr. Gage
referred to the advantage of this id
oil La ta,a IT,, ,.s,
ing elasticity to the currency at points
where it was most needed. He showed
from the returns of the comptrollers
that small percentage of losses came
from national banks. and further than
this unsecured circulation, would fail
In any considerable obligation to the
government " reason of its guaranty
and this would be overcome by the
small tax on the bank constituting d
safety fund.
In answer to questions by Mr.. New
lands of Nevada, the secretary said
that the amount of the refunding bonds
under the bill would reach S1,136, 900 If
all Of them were issued. This being the
basis for circulation, bank notes could
be Issued to that amount. Besides
these, the additional % per cent of I'M
secured circulation would give fur
Their issue of bank notes of about SOO,-
100000. But that vast issue was
was not reality. The banks could not
get all the bonds and use them for is
suing bank notes. on the contrary,
government bonds are always taken
largely by private investors, trust
companies, insurance companies and
parties across the water. Any effort of
the banks TO absorb all the bonds
would so affect the price as to defeat
the objects in view. This also would
serve as check to the expansion of
bank circulation.
Mr.. Newlands referred to gold con-
tracts" and asked the secretary about
them. Mr.. Gage did not deem 1t de-
sirabie to interfere with private con-
tracts of this character any more
than was necessary. To Mr.. Prince,
of Illinois, he explained that his ex-
preston gold and other legal money"
used in the bill meant no reflection
on silver or other classes of money.
The other legal money included sill
YER and the expression merely served
to cover well understood term.
The extent to which drains on the
government stock of gold would re-
suit under the plans of the bill excited
much discussion.
Mr.. Gage stated that all redemptions
would be made in gold or its equiva-
lent.
MIR. Flower of New Jersey, said this
opened a serious question and in
huiiNh SINtI WOULD not
be deposited and impounded, and their
place taken by national bank notes.
thus increasing the decline in our gold
supply. MIR. Gage answered that II was
easy to conjecture up hypothetical OBJ
jections, but he did not look at this
case as serious. Any secretary of the
treasury on receiving these silver GER
tificates would swap" them for green
back treasury notes and other form of
government notes which serve to drain
notes and thus build up the redemp-
ton fund.
Stole Three Carloads of Apples.
Chicago, Dec. I'LL. C. bingham,
an employe of local commission COM
pany, has been arrested on charges of
obtaining money by false pretenses,
preferred by Sexton & Jordan, n COM
mission firm Of Lexington. Mo. Ding
ham was formerly a member of the
Lindley Commission company, and
acted as travelling salesman for the
company. In some way 1t is charged.
he swindled the Missouri firm out of