The Wichita daily eagle., 1897-12-18
GAGE AS EXP0SlT0R
rs THE TARGET OF THE BANKING
AND CURRENCY COMMITTEE:
Resumes His Elucidation OF His Financial
Measure. Undertaking To Ksconche
His Gold standard Declaration Win
the ST. Louis Platform. and SO Defining
with More or Less Exactness His Attr-
tude Towards Siiver-Enect OF Section
2, Relating to the New Banking Basis,
Is Explained.

2, Relating to the New Banking Basis,
is Explained.
Washington, Dec. 17.-Secretary Gage
resumed his exposition Of his extensive
currency bill before the house committee
on banking and currency today. Chalr-
man Walker had left the city. and Mr..
Brossius presided.
Before the bill proper was taken up,
some semi-political questions were ask
ed. Mr.. Hill Rep, Conn) called Mr..
Cages attention to the statement made
Yesterday that the first purpose OF the
bill was to commit the country TO the gold
standard.
You are recognized as Republican,,
said Mr. Hill, addressing the secretary.
land YOU are familiar with the financial
platform of the Republican national con-
vention at st. Louis. Do you consider
this purpose Of more firmly fixing the
gold standard on the country conflicts
with the plank of the st. Louis plat
form?"
NO. sir" responded Mr.. Gage; mot as
I look a the principle Of bimetallism- Bi-
metallism must mean one of two things:
either il is two kinds Of money o. un-
equal value circulating side by side by
reason of the exchange of the less valu-
able 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 bl-
metallic currency in the United States
now. A firm establishment of the gold
standard, with such interchangeabillty
with silver as will make 1t acceptable
on an equality with gold, Will MAINTAIN
this bimetallsm the same as 1t has eX-
listed for the last eighteen years"
The secretary 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, how
ever, was designed 70 give such conil-
dence in the financial ability Of the gov
eminent that the discrimination against
Silver would largely decrease.
Mr.. Cox Dem., Tenn.) asked If the re-
suit of the Gage bill eventually would
not lead to one kind Of paper money
bank notes-and no silver, except subsid-
iary silver.
There is nothing in the plan to oper-
ate TO that extent now," answered Mr..
Gage.
1T is in that direction, and. with fur
ther legislation developing, it might ulti-
mately lead 10 such result. But L
would not say that silver will not be re-
stricted to subsidiary silver. 1 would
say, a system of silver which would be
subordinate. 1t is subordinate now
After this diversion to the silver ques-
rion the consideration of the bill by sec
tons was resumed al section Z, where
the discussion closed yesterday. This
section provides for an increase of ma
tional bank note circulation, ODE secur-
ed not by the deposit of onds or notes,
but the assets of the bank and the gov
ernment guaranty. Mr.. Gage referred TO
the advantage of this additional unSe-
cured circulation. in giving an elasticity
to the currency at points where it was
most needed. He showed from the re-
turns of the comptroller's office now
small a percentage OF loss came from
national banks and urged that this unse-
cured circulation would entail an incon-
siderable obligation on the government,
by reason of it's guaranty, and this
would be overcome by the small tax on
the bank constituting a safety fund.
In answer 10 questions by Mr.. New
lands of Nevada, the secretary said that
the amount of the refunding bonds un-
der the bill would reach s1.1Ss, 100000 il
all OF them were issued. This being the
basis for circulation, bank notes could be
issued 10 that amount Besides these,
the additional 20 per cent OF unsecured
circulation would give a further issue
OF bank notes Of about s3OO,OOO,oO But
that vast issue was merely the creation
OF a spectre and was not reality. The
banks could not get all the bonds and
use them for issuing bank notes. On the
contrary. government bonds are always
taken largely by private investors, trust
companies, insurance companies and par
ties across the water Any effort Of the
banks 10 absorb all the bonds would so
affsc; the banks as 20 defeat the OBJECT
in view. And this would also serve as a
check 10 the expansion of bank circula-
ion.
Mr.. Newlands referred the gold con-
tracts" and asked the secretary about
them. Mr.. Gage did not deem it desira-
BILE 10 interfere with private contracts OF
this character any more than was nee
essary. To Mr. Prince Qll) he explained
that his expression "gold and other legal
money" used in the bill meant no refiec-
ton on silver or other classes OF money.
The other legal money included silver.
and the expression merely served 10 COW
er a well understood term.
The extent to which the drains on he
government stock OF gold would resul;
under the plans OF the bill excited much
discussion
Mr.. Gage stated that all redemptions
would be made in gold or It's equivalent
Mr. Fowler N. j. said this opened a
serious question and inquired if silver
certificates would not be deposited and
. impounded and their place taken By na-
tional bank notes, thus increasing the
drain on our gold supply.
Mr.. Gage answered that /; was easy 70
conjure up hypothetical objections, out
| he did not lock a. this one as serious
Any secretary OF the treasury on recsiv-
! ing these silver certificat les would swap
them for green backs, treasury notes and
other forms OF demand notes which serv-
ed 20 drain gold, and nus build up the
redemption fund.
Regarding section s. which pledges the
faith OF the United States % the redsmp
/ ton OF bank notes. Mr.. Gage said ihi:
| was merely 70 make clear the sans
/ pledge as the government no~ gave Il
/ the integrity .. henk notes
He did no; agree with objections sug
gested that the 10 per cent deposit re
quired o.. the banks by this section ant