Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1897-12-21
GAGE HEARD AGAIN.
Secretary Explains More Fully His
Currency Measure.
BILL Is DISCUSSED BY SECTIONS.

Refunding IfOnls Expected to Reach
ate PASSES n Big Batch of PEN
sion Dills-In the House.
Washington, Dec. IS. Secretary
Gage resumed his exposition of hi.
comprehensive currency bill before the
house committee on banking and cur
rency Friday. Chairman Walker had
left the city and Mr.. Brosius. Pennsyl
vania, presided.
Before tire bill proper was taken up
some semi-political questions were
asked. Mr.. Hill (rep., COMM called Mr.
Cages attention to the statement made
Thursday that the first purpose of the
bill was to commit the country to the
gold standard.
No Conflict with Platform.
gaid Mr.. Fill, addressing he secretary,
I''and you are familiar with the financial
platform of the republican national con-
ivention at st. Louis Do you consider
that this purpose Of more firmly fixing the
gold standard on the country conflicts
with the principle of the st. Louis plat
form?"
/ mo, SIR responded Mr.. Gage: mot as
I look at the principle of bimetallism. BIZ
metallism must mean one of two things:
EITHER it is two kinds Of money Of I'M
equal value, circulating side by side by
reason of the exchange of the less valu-
able for that of greater value, or else two
kinds Of money of such intrinsic equality
of value that they will circulate natural
1y side by side. We have bimetallic
currency in the United States now. A
firm establishment of the gold standard.
with such interchaugeability with silver
as will make it acceptable on an equality
with gold, will maintain this bimetallism
the same as it has existed for the last
as years.
The secretary went on to state that this
dn no way prejudiced any steps that might
be taken to bring silver up to higher
standard of value. The bill, however, was
financial ability of the government that
the Determinations against silver would
largely decrease.
Subsidiary silver.
Mr.. Cox (dem, Tenn) asked II the re-
suit of the Gage bill eventually would
not lead to one kind of paper money
bank notes--and no silver except sub
sidiary silver.
There is nothing in the plan to operate
to that extent now" answered Mr.. Gage.
SIT Is in that direction and, with further
legislation developing 1t. 1t might ultimate
ay lead to such result. But would not
say that silver will not be restricted to
subsidiary silver. l would say system Of
silver which would be subordinate. 1t is
subordinate noWt
Constellation of the Bill.
After this diversion to the silver ques-
tion, the consideration of the bill by Sec
~ nod, r.
discussion closed Thursday. This section
provides for an increase of national bank
note circulation to be secured not by the
deposit of bonds or notes, but by the as
sets OF the bank and the government guar
nnty. Mr.. Gage referred to the advantage
Of this additional unsecured circulation, in
giving an elasticity to the country at points
where 1t was most needed.
The RefundfnE Bonds.
I In answer to questions by Mr. New.
lands, of Nevada, the secretary said that
the amount of the refundlng bonds I'M
der the bill would reach 81. 1SS. 900, 900 If all
tof them were Issued. These being the basis
for circulation, bank notes could be issued
ito that amount. Besides these the addi-
tional 25 per cent of unsecured circulation
would give further issue of bank notes
of about $300,0O0.000. But that vast Issue
twas merely the creation of specter 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 pri-
waite investors. trust companies, insurance
companies and parties across the water
Amy effort by the banks to absorb all the
bonds would SO affect the price as to de-
feat the object in view.
Mr.. Newlands referred to gold con-
tracts" and asked the secretary's view on
Them.
Mr.. Gage said he did not consider 1t de-
Firable to interfere with private contracts
pf this character any more than was neces-
bary.
I Redemption of Dunk Notes.
Regarding Section 8. which pledges the
Faith OF the United States to the redemp-
fion Of the bank notes, Mr.. Gage said this
was merely to make>clear the same pledge
as the government now gave to the integ-
rity of the bank notes. He did not agree
with objections suggested that the ten per
cent. deposit required of the banks by this
section and the two per cent. tax on them
for safety fund would make 1t unprof1t-
able for them to issue circulation There
were other advantages secured to them
which offset this objection. The purpose Of
Section providing that issues Of ma
fional bank notes shall be in denominations
above ten dollars was to give the govern
ment the monopoly on small bills in most
icommon use.
Z When Section 10, providing for the re-
Exemption of bank notes at the New York
subtreasury and other designated points
was reached, Mr.. Cox asked Mr.. Gage why
he did not specify that the redemption
should be in gold or other legal money.
The secretary answered that the less dis
cretionary power imposed on an executive
officer in the execution Of principle the
better, for sometimes executive officers
might have indiscretion and do foolish
things. Moreover, this discretion existed
now.
No Raid ON Treasury.
When the remainder of the bill had been
read a general discussion began In answer
to cross fire of questions Mr.. Gage said
fhe bill could not result In a raid on the
treasury by bank notes. 1t was not tho
substitution of an endless chain" Of
Greenbacks for another endless chain" NJ
bank notes. The banks would have to re-
deem their own notes, and 1t would be to
their object to do SO or they would be
closed. But SO long as a dollar Of demand
rendless chain" would go on.
j He said: This bill is simply step in the
right direction, and most important stem,
1T would give the government s325 OOO. OOH
Of the very liabilities which were most
likely to be brought against it. OF this
ki25,OOO.oOo Is in gold. Then, with the fur
ther measure recommended by the presi-
dent. giving authority for loan up to
300 900 when required, the government
would be SO strong in time of emergency as
TO resist any stress. Faith would be estab-
lished and people would not come TO the
treasury for lack Of faith, but only from
necessity"
Mr.. Brosius asked If the secretary felt
that the bill would obviate any probability
of the country being forced to silver
basis. The secretary though! II would, be-
yQnd question.
4. This closed Mr.. Cages hearing, and he
was given a vote of thanks. Several mem
bers sought to have another hearing DUR
ing the holidays but there was strenuous