The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-17
SECRETARY OF THE TREASURY
PRESENTS his CURRENCY
BILL IN PERSON.
DISCUSSED 1T AT LENGTH.
POINTS ALSO BROUGHT OUT BY
MEMBERS OF [THEi HOUSE
COMMITTEE.
FULL DETAILS OF THE MEASURE.
It's Object to Establish the Gold
Standard and Reform the Coun-
try's Monetary System.


WASHINGTON. Dec. 16.-Secretary
Gage appeared today before the COM
mittee on banking and currency Of the
house of representatives to present a
bill embodying his views for revision
of the currency, to explain and urge
its provisions, and to meet any objec-
tons raised by the committee. The
secretary was accompanied by Judge
O'Connell, solicitor Of the treasury.
Copies of the secretary's bill were
handed to members of the committee
and were scanned with great interest.
After being introduced to the various
gentlemen of the committee, Mr. Gage
began his statement, speaking in an
easy, conversational manner. He said:
The objects / have in mind in the series
of provisions offered by me are four in num-
Der:
Eirst-To commit the country more thor
oughly to the gold standard; remove, SO far as
possible doubts and fears on that point,
and thus strengthen the credit of the United
States both at home and abroad.
Second-To strengthen the treasury In rela-
ton to its demand liabilities, in which are
incidental obligation to maintain on parity,
through interchangeability with gold, so far
as may be necessary, the present large vol
ume of silver certificates and silver dollars
Third-To do this in such way as not to
contract the volume OF a circulation in the
hands of the people
Fourth-To take an initial step toward a
system of bank note issues without the con-
therefor.
If we prosper as a people the revenue
of the government ought to be somewhat In
advance Of its expenditures, and the public
debt of the United States gradually reduced
and finally extinguished. Looking at the
question widely, from my best point Of
knowledge and experience, feel that If these
could be secured the condition of the govern
ment, in It's relation to the currency, would
be much safer and stronger than now, and
that through the operation of national bank
note currency, the commercial and industrial
interests of the United States would be great
ly advanced.
Turning from his notes Mr.. Gage
proceeded extemporaneously, as fol-
lows:
AS to the first proposttion-to commit the
country more thoroughly to the gold standard,
remove far possible doubts and fears
on that point and thus strengthen the United
States both at home and abroad would
say that the proposition to refund the bond
ed debt Of the United States, now payable in
coin into bonds, bearing on their face lower
rate of interest and payable, principal and in
terest, in gold, is a measure directed to that
end 1t costs nothing to the government
whatever so far as the refunding OF 1t is con-
cerned, except the expenditure necessary to
print the bonds and do the clerical work. 1t
takes ambiguity out Of the relations Of the
government to its creditors; 1t gives, l be-
lieve, strength and security and power TO
the whole commercial and industrial system
of the United States and the measure as 1t is
prepared here in the bill will, in my opinion,
accomplish that object. The other measures
TIT ~,
to be questioned about, have been drawn to
accomplish not only the objects named, but
the various purposes already detailed by me.
If they are worthy objects they ought to be
recognized and secured. If they are I'M
worthy objects they ought to be rejected; or,
If the manner of securing them is not a wise
one, as l have outlined it, the manner ought
to be rejected or reformed or improved.
After this initial statement it was
deemed advisable to read the secre-
ton by section.
THE GAGE BILL.
The text Of the bill is as follows:
bill to provide for the refunding of the
national debt. for establishing a redemption
in the treasury of the United States, and to
modify existing laws respecting national
banks, and for other purposes.
Be 1t enacted, ETC., that there be established
the Office of the treasurer of the United States
a division of issue and redemption, to which
shall be assigned under such regulations as
the secretary Of the treasury may approve,
all records and accounts relating to the issue,
redemption and exchange, as hereinafter
provided, of the several classes of United
States paper money. There shall be trans
ferred from the general fund in the treasury
Of the United States and taken up on the
books of said division as a redemption fund
the sum of s125, 900, 900 in United States gold
coin and bullion, and such further sums Of
standard silver dollars, and silver bullion
purchased under the act of congress ap-
proved July IA. 1890, as shall equal the silver
certificates outside the treasury. and treasury
notes of 1890 outstanding on the date when
this act shall take effect; and thereafter the
transferred from the general fund in the
treasury as herein provided shall be increased
or diminished as the case may be, In accord
ance with the provisions of this act, and in
no other way. 20
Section 2-That all United states notes, treas
ury notes of 1890 and silver certificates pre-
sented for redemption shall be redeemed from
the redemption fund herein provided, In
accordance with the terms of existing laws,
but the notes and certificates SO redeemed
shall be held In and constitute a part of
said fund, and shall not be withdrawn from
said fund nor disbursed, except in exchange
for an equivalent amount of the coin in
which said notes or certificates were re-
deemed. But to enable the secretary of the
treasury more thoroughly to carry out the
provisions contained in this act, he Is hereby
authorized to exchange any of the funds in
the division Of issue and redemption for any
other funds which may be in the general
fund of the treasury department. provided
that nothing In this act shall be construed
as repeating that provision of the act ap-
proved July IA, 1890, which provides that there
shall be outstanding at any time no more
and no less of the treasury notes authorized
by said act than the silver bullion and stan
dard silver dollars coined therefrom then held
in the treasury, purchased with said notes.
Section S-That the secretary Of the treasury
be and he is hereby authorized to receive at
the treasury any Of the outstanding bonds
known as the five per centum bonds Of 1904
and the four per centum consols of 1907, is
sued respectively under the act approved JAM
IA, 1875, and the acts approved July IA, 1870
and Jan. 20, 1871, and to Issue in exchange
therefor coupon or registered bonds of the
United States in such form as he may pre-
scribe, in denominations of fifty dollars, or
some multiple of that sum, bearing interest at
the rate of two and one-half per centum per
annum, payable semi-annually, and redeem
able at the pleasure Of the United States
after ten years from the date, of their ISSUE
and the bonds hereby authorized shall be
payable, principal and Einterest in United
States gold coin Of the present standard value
and shall be exempt from all Taxation by or
under state, municipal or local authority:
Provided, that none of the outstanding bonds
shall be received at valuation greater than
their present worth to yield an Income of
two and one-half per centum per annum, and
that the bonds hereby Authorized shall be is
sued at not less than par
FACE VALUE.
Section 4-That the bonds authorized by this
act and any other bonds Of the United