The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-18
GAGE CURRENCY BILL.
THE SECRETARY or THE TREAS
URY BEFORE THE COMMITTEE.
lie Defines Bi netaIIism for Fellow Re-
publican and Explains In Detail
HisProposed Measure.

Before the bill proper was taken wv
some semi-political questions were asheu'
Mr.. Hi (Republican OF CONNECTICUT
called Mr. Cages attention 10 the Stale-
ment made yesterday that the list Pul-
pose OF the bill was to commit the cou"-
try TO the gold standard.
You are recognized as a RepuDhcah,
said Mr.. Hill. addressing the secretary,
and you are familiar win the HlancIai
platform OF the Republican Nauohal
Convention at st. LOUIS. 10 YOU Ill .o,
slider that this purpose OF nloic nli.Iy
fixing the gold standard on the country
conflicts with the principles oil the D.
Louis PLATFORM"
BIMETALLGsM.
Nc. sir" responded Mr.. Gage, not as
look at the principle OF Dimetaiiisfn.
Bimetallism must mean one OF wv
thin gs-either II Ia two kinjs OF niunty
Of equal value circulating. slde Dy slue
by reason Of the exchange OF tne iesS
valuable for that of the greater Nalue'
OF two kinds Of money OF such intrinsic
eouality of value that they will circulate
naturally side by side. we nave - Dr.
metallic currency in tho United states
now: q firm establishment OF the solu
standard with such interchangeaDihty
with silver as will make II acceplaDIs on
an eouality with gold and VIII maintain
this bimetallism the same as IL mas tx
istan for the last eighteen years.
The Secretary then went on 10 STATE
that this In no way pre1udiced any steps
that might be taken 10 pIlng SILVER up
to a higher standard Of value Inc Dill.
however. was designed 20 give such con-
Gdence in the financial ability Of the gov
eminent that the determinations AGAINST
silver would largely decrease.
Mr.. Cox democrat OF TENNESSEE asked
II the result OF the Gage Dill eventually
would not lead 20 one kind o' paper
monev-bank nOtes-and no silver except
subsidiary silver.
''Th IRE is nothing IN the plan to operate
10 that extent now answered the sec
rotary ct is in that direction ana win
further legislation developing II; II might
ultimately lead to such result. But !
would not say that silver would ne re-
stricted 10 subsidiary silver would say
system Of silver, which would would. re SUD-
ordinate 1t Is subordinate now.
BY SECTIONS.
After this diversion to the silver ques-
ton the consideration OF the bill by sec
lions was resumed at section :. where the
discussion closed yesterday. ms secuon
provides that on the deposit by national
hank of United states bonds. United
States notes. treasury notes OF lN9O. or Sill
yer certificates TO an amount OF not iesS
than fifty per cent. OF us cdpitai' ~ iS5ui, dl
receive national bank notes in addition
TO The fifty per cent. otherwise provided.
10 the amount OF twenty-five per cent. OF
such deposit. these additional notes not
being secured by the deposit OF bonds or
the government guaranty.
Mr.. Gage referred TO the advantage or
this additional unsecured circulation IN
giving an elasticity TO the currency az
points where II was most needed. In an
swer 10 questions by Mr.. Newlands, or
Nevada the Secretary said that me
amount OF refunding bonds under the bill
would reach tl13S 600 600. II all OF them
were issued These bonds being the basis
for circulation bank notes could be issued
10 that amount Beside these, the addl-
ont |0f 81 NTf
circulation would give a further issue or
bank notes Of about 500 10000 but that
vast issue was merely the creation OF Il
spectre and was not reality. The banks
could not get all the bonds ana use them
for issuing bank notes.
on the contrary. government bonds are
always taken largely by private investors;
trust companies. insurance companies ana
parties across the water.
GOLD CONTRACT
Mr.. Newlands referred 10 gold con-
tracts" and asked the Secretarys view
OF them Mr.. Gage said he ala not cohsld-
or II desirable 10 interfere with private
contracts OF this character any more IMAM
was necessary. The extent 20 which
drains on the government stock Of gold
would result under the operations OF the
bill. excited much discussion.
Mir. Gage stated that all redemptions
would be made in gold or its equivalent.
Proceeding To section ). which provides
for deposit 10y the banks OF a sum equal
TO zen per cent. OF tItNidlipi oAu ei''
hedges the faith Of the United states 20
the redemption Of the bank notes MI.
Cage said the latter feature WAS merely
90 make clear the same pledge as the
government have 10 the integrity OF the
bank notes.
on section .. providing that issues OF
national bank nBes shall be in demon
nations above $40. Mr.. Gage said that
thc purpose of this was To- give the gov
e"dmcnt the monopoly on small blls IN
When seicion 10. providing for the re-
deption of bank notes at the New YORK
sub-treasury and other designated points
WIS reached. Mr.. Cox asked MIR. Gage
why he did not specify that redemption
should De in gold or other legal money.
The Secretary answered mat the less
discretionary power imposed on an tA-
ccutlve officer in the execution OF ptln-
ciple the better. for som .times executive
officers might has ndiscretion ana do
foolish things Moreover. this discretion
GENERAL DISCUSSION.
When the remainder Of he bill had
been read. a general discussion began: In
answer TO a cross fire OF questions, Mr..
Cage said the bill could not result In "a
raid on the Treasury by bank notes. ii
was not The substitution OF an endless
chain" Of Creenbacks for another end
less chain Of bank notes. The banks
would have to redeem their own notes
and il would be 10 their advantage 10 90
SO Or they would be closed. But so loNE
as "a dollar OF demand obligations was
outstanding 50 long this endless chain
would 20 on. He said:
This bill is simply step IN the flSht
dire, tiOn-and most Important step. III
would give the government S323.WOHO OF
the very Liabilities which are most likely
To be brought against IL. OF this sl23.-
LOO is in gold. This, then. with the
further measure recommended by the
President. giving authority for a loan ny
to 500 900 900 when required the govern
ment would be so strong in time OF
emergency as TO resist any stress. Faith
would De cstabis he'd and people would
not come TO the treasury from lack OF
faith but only from necessity
This brought on an interesting and
amusing discussion Of politics as relating
to finance.
Mr.. Brosus asked If the Secretary felt
that the bill would obviate any proba-
bility of the country's being forced TO a
silver basis. The Secretary thought II
would beyond question.
This closed Mr. Cages hearing and ne
was given "A vote Of thanks.
Several members sought 10 have an
other hearing during the holidays. hut
there was strenuous objection 10 this
and the original plan was adhered to OF
adiourning until January 10Th. when the
Gage bill. the Monetary Conference bill
and other financial measures will be
taken up.