Connecticut western news., 1897-10-28
THEPLAN OF MR.GAGE
SECRETARY OF rREAsuRY's RecoM- INNOVATIONS REGARDING FINANCE.
He Proposes a Scheme For rpcresstnH the Circulation of the National Banks Public Debt 10 Bs Refunded In Two and a Half Per Cent Cold nonds.

Washington, Oct. 27.-Secrotary of the Treasury Gage has submitted to the president and cabinet the rccom- mendations as to financial legislation which he win make to congreHs in his annual report.
 While the details of the recrctary's plan of financial reform will not be made public until his report Is sent to congress, its general outlines can be given.
 The keynote of the secretary's scheme is the refunding of the present bonded debt of the country in gold bonds bear ing 2h per cent interest He believes that bonds which declare on their face that they are payable. principal and interest. in gold can easily be sold at that rate. As most of the present bond ed debt bears interest at ( and 5 per cent. the annual saving In interest by refunding would be about N7,OO0, GOO.
 This would more than pay the inter est on the S260. 900 900 additional 2M per cent gold bonds which would have to be issued to carry out the second fea- ture of the secretary's plan. which Ia the retirement of all the outstanding greenbacks and Serman notes. so as to leave no notes whatever outstanding which could be used 10 drain the treas ury of gold.
 With the retirement of the sherman notes the government would be les with silver bullion in the treasury vaults, purchased under the sherman law at cost of sl04 900, 900. This could either be sold at the market price or it could gradually be coined into silver dollars to the amount of s125,ooo,oo0.
 To Increase Bank Circulation.
 u~a af which would be withdrawn from cir- culatlon by the retirement of the green backs and the treasury notes Secreta- " Gage will propose a plan for increas- ing the national bank circulation much above its present limit He will pros pose that the banks be allowed to ia- sue notes up to the par value of the government bonds deposited by them. and he believes that practically all Of the additional bonds that would be is- sued to retire the government notes wosld be absorbed by the banks as q basis for circulation.
 The secretary will also propose some thing on the line of the SO called Bal timore plan, by which banks will be al- lowed 10 issue additional clrcuintiop, probably up to 2b per cent of their cap ital stock, ample provision being made for it's security. He will recommend that the tax on national bank circula- ton be reduced to just enough to cover the expense of administering the law and supervising the banks.
 In order to give increased circulation to the southern states and other locali- ties, in which the silver movement Rain- ed strength chiefly on the ground that more currency was needed for transact ing business the secretary will recom- mend that national banks be permitted to organize with s2b.0o0 capital. If is believed such n provision. coupled with proper safeguards to protect circulation, would give to these communities a safe and somewhat elastic currency. which could be put out by the local banks az 1t would be needed for moving the crops or meeting any other demand for | money.
 Secretary Gage explained his propoa- als in detail to the cabinet, and there was a general discussion of the plan, It is possible that he will modify some of the details before his report ls made | public but the general outline of his recommendation will be as here given, MT. Gage counts on the feature which proposes to give local banks and mors currency to the sparsely settled seer | tions of the country to aid in securing votes for his scheme from the senators from those states and hopes lt will be | possible to secure law embracing moet if not all of his recommendation. There will be no difficulty In passing it through 1 the house of representatives 1T it Is backed by the administration and Speaker Reed. The only difficulty Is ip | the senate.