The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-12-18
SECRETARY GAGE
EXPLAINS HIS BILL
BEGINS Where He LeI| OIL Thursday
QDd Goes 10 Inc End.
DEFINES HIS IDEA OF BlRETALLISH
Bill Designed 10 Inspire Confidence iD f.
nanCial Strength of the Government.
Provision for Giving Elasticity 10 tho
Volume ofCurrcncy 10 Meet The Dcs
mnhds of Rusincss-No objection
10 Private Gold Contracts-Doe,
Not Think tho Purpose of tho RiII
Conflicts with the ST. Louis Plat.
form.
Washington. d.. c., Dec. II. 1897.
fOrnl.

~ ''eS'iiiso 'oii' ~. ", dec. Z, 1871.
secretary Gage resumed his exposi-
ton of his comprehensive currency bill
before the House Committee on Bank
ing and Currency to-day. Chairman
walker had left the city and Mr..
Brosius. of Pennsylvania, presided. Be
fore the bill proper was taken up some
seh1l-poiitical questions were asked.
Mr. Hill Qaep), OF Connecticut, called
MIR. Cages attention to the stutement
made yesterday that the first purposc
OIL the Dill was TO commit the country
to the gold standard.
fou are recognized as n Republi-
can" said Mr.. Hill, addressing the Sec
retarv' and you are familiar with the
financial platform Of the Republican
National convention at st. Louis. do
you consider that this purpose of firmly
hXing the gold standard on the country
conflicts with the principle of the st
Louis platform?"
NO SIR responded Mr.. Gage. "uot
as look at the principle of bimetnllism
binletalllsm must mean Cue of two
tnlhes: EITHER it is two kinds of money
OF unequal value CIRCULATING side bv
t,T thn
less valuable for that OF grea ter value
or else two kinds OF money OF snrh
intrinsic equality of value that thov
VIII circulate raturally side bv side
we nave bimetallic currency in Tho
united States now. \ firm establish
meht oil the gold standard with such
bilty with silver as will
.rnih -, ~ "ccePtanle on an equality with
gold will maintain this bimetallIsm ihn
same as it has existed for the last
eightecn years"
ne secretary went on to state that
lhls In no way prejudiced any si.n,
mat might be taken TO bring silver up
10 higher standard Of value The
Dill. however, was designed 10 rivn suni,
confidence in the financial oLjIitv ,c 'tIa
government that the discriminations
against silver would largely decrease
MT. Cox Dem.). of Tennessee, asked
II the result of the Gage bill cvcn,unlIv
would not, lead to one kind of nannr
moneE.bank notes-and no silver ex-
cept subsidiary silver?
There is nothin,, in tho nIop 70 on,
rate rate 10 lhat extent now" answered the
secretary. ut Is in that direction ond
win further legislation dcvclopinr II
IL might ultimately lead to such n rn.
suit But I would not say that silver
would be restricted to subsidiary sil-
yer. l would say n system of silver
Mnich would ne subordinate. 1t Is sub
ordinate now"
After this diversion TO the silver oune.
tlon, the consideration of the bill nv
sections was resumed at Section 7
"nen the discussion closed Yesterday
rms section provides tha; on the de-
post by national bank OF United
states bonds, United States notes ,rcas
uTy notes OF 1890 or silver certif9ltcs
10 an amount Of not less than 50 per
cent. OF lis capital, it shall receive ma
uohal bank notes. in addition to the
ao per cent. otherwise provided, to the
amount Of % per cent. of such depOsM
these additional notes not being secur-
ed by the deposit of bonds or notes bu,
by the assets OF the bank ana the Gov
eminent guaranty. Mr.. Gage referred
10 the advantage of this additional un-
secured circulation. in giving an elas;l-
city to the currency at points where II
was most needed
In answer 10 questions by Mr.. New
lands. of Nevada, the Secretary said
that the amount of refunding bonds un-
der the bill would reach 81 i%S, ,000, ,OOG. if
all of them were issued. These bonds
being the basis for circulation. bank
notes could be issued To that amount
Besides these, the ad,ttional % per
cent. Of unsecured circulation would
give further issue of bank notes OF
about $500 100000
But that vas: issue was merely the
creation of a spectre, and was not a
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 prl-
va;e investors. trust companies insu.-
ance companies and parties across the
wais7
MIR NeWlanda referred In cold cOn
tracts and asked the Secretary's view OF
them.
Mr.. Gage said he did not consider It
desirable to interfere with private con-
tracts of this character any more than
was necessary The extent 10 which
drains on the Government; stock OF gold
would result under the operation of the
bill. excited much discussion. Mr.. Gage
stated that all redemptions would be
made in gold or its equivalent. s
Proceeding TO Section s, which pro-