New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-21
mr. CAGES CURRENCY PLAN.
SOME OF THE DETAILS EXPLAINED IN a
LETTER FROM THE SECRETARY.

pos,oc Hov on-"Tbe Journal" this morning says:
Two man nroposed by the Secretary OF the Treas
urv for reforming the currency Is OF vast impor-
.ance 10 the whole country. In commercial anu
financial centres Ike Boston. the interest on inc
MARI NJ all business men has been so great that
every detail OF the proposed plan mas peeh SCI
r,1sj with the greatest care and fully discussed.
A. result OF a study Of the various parts OF sec
rotary Cages plan and after consultation Win
,oadlne ananclers the Editor of The Boston Jour-
nal" addressed to Secretary Gage under date OF
November 49, letter embodyns the fouo"ihs
questions which cover the points or de'ai' upon
which doubt as to the Secretary's exact intention
has been expressed: .
rirs,-You nut no limit OF time within which the
Secretary OF the Treasury shall substitute interest,".
bearing bonds for deposit OF currency MoIia - IT,
be fair 10 make some limit and not allow the oahhs
70 f@ei that You got the money in and they got no
| interest, except the saving of one-half Oh per
Second-When you say that the Government sha ~
guarantee the payment of al clrcuaumS NO. or oriv
the banks. do you mean immediate paEmen Sr e
ultimate payment? II would make quite uiiiTrS Sns
In the treatment OF the notes OF any NY
TblTdmWe have also heard It questioned whether
II was wise to invest the per cent guarantee
held by the Government in bonds as tneK mis sht
h hHc s,ar ~ IN b wduii inn IN money
DC 5HeE VI G the redemption fund Of per cent 70
| be counted by the banks as part OF t"ei' 'ee''
| reserve? ,.,. =,
The following reply was received uhdeF aa'e u
November IS. from Secretary Gage:
Treasury Department. ONCE OF me secretary
| To the Editor OF The Boston journal -. .. ro
I avail myself of the first leisure moment 10 re-
nv m yours OF the 18th inst. in which you WISH
Recommendations | will. therefore. say; ,.,
NEirsfMThat II is the purpose in mind 10 suDsu-
into interest bearing bonds as security lor citcu
a,inc notes in substitution OF currency previous!
dcposcd as rapidly the Printing bredu cay sv.
| them issued and in proper ioriH' III I'S'' 'i' '
| would be very brief ,..-i, ~. cur-
cerond-Tha idea OF requiring a deposit OF cur ir
rancv 10 begin with Is to make sure that there VIII
he no contraction at all in this operation. Money
wil 90 out as fast It comes in Inc guar 49,
~ the Government" understand TO mean guar
antee for immediate payment. not uluihd'e pay
ment ,--..... -, .bo . nor cent guar
on,ee funds If invested in Government oohus M WI
sav that II 90 per cent gold bonds are issued .Ie
I,,Iation will not be violent unless tne dept ne
affcr should be greatly increased ana as ne e
ment would probably be growing sum tle lsh N uI
a fau could be easily sustained by that suaFa"
'e TTIurrrqbrbe redemption fund OF per cent may
cnnCide TO recommend 10 per cent ihsteau OIL - -.
not 70 be counted as part OF the ieSai 'ese''e
aGa 1i much gratifed at the friendly interest you
800 In he suggestions made by me- ! DO hot hiow
~, thev are the best that could De nldus ~
SaeI quite certain that II they could az Dc aaop
~, C.overnment would find itself as pank Oh 49,
nd that is what II L. and what II VIII De 10, SUM-
anrs 70 GOMEZ in an enormously better posion !tI'i
IL now is. Ab-'''-' -