The Portland daily press., 1898-01-13
TO CURE THE CURRENCY.
Monetary Commission Explain Their
Scheme.
HEARING BEFORE HOUSE COM
MITTEE ON BANKING.

Ex-senator Edmunds Argues for the
Single staudard-Says Double Stand
ard,is Impos ss.ble-Retiremento of Green
backs Discussed by Ex-Secretary
FairchiId.
Washington, January 12.--The None
tary Commission was given C hearing to-
day by the House committee on banking
and currency on the commissioners bill
proposing comprehensive revision of the
currency.
Ex-senator Edmunds of Vermont,
chairman of tho commission. headed the
delegation, and with him were ex-Secre-
tary of the Treasury Fairchld of New
York; j. W. Fries of North Carolina,
representing the gold Democratic senti-
ment of the. South; I. J. Bush Of Ala.
bama, and Judge r. S. Taylor of In
diana, representing the Middle West.
Secretary Gage was also present, accom-
panied by the solicitor of the treasury.
Mr. Edmunds was the first speaker.
He said that the fundamental principle
which the commission had felt was to be
considered i esta blishing stable currt n ~
was, first, to know what the standard Of
value in this country is and is to be.
Many believed, and he was one Of these,
that it WAS impossible to have more than
one standard of value.
| MIR. Ednunds referred to the experience
of the great nations of the world, all
| eJ,o \ hot CT or ,du urd
meant stability and safety while legal at
tempts at double standards mean disaster
and panic.
From this universal experience Mr..
Edmunds said he and his associates had
come to the conclusion that the first prin-
cipls on which to base currency wa' to
have ono standard; that gold is the best
standard because it is the most BILE of
all standards of value, subject to the least
| fiuctuation from year to year. mat,
however, did not exclude the idea of bi-
| metallism, for it did not exclude the use
of silver or any other metal to the largest
extent that could be maintained on an
equality with the one fixed and invariable
standard of gold. That conclusion was
reached he said, with no prejudices, no
private political considerations but Solely
from the conviction of those Of the conf
mission representing the various sections
up the proposition of the commissions
bill proposing retirement of United
States notes, explaining and urging this
on the lines of the commissions report.
He closed with a strong appeal for early
action. The best time to rectify financial
evils he said was in time of peace and
prosperity. AS Mr. Edmunds was to be
engaged in tho Supreme court tomorrow
he asked that the committee PROFOUND
questions today.
Representative Cox. Democrat of Ten
nessee, propounded series of questions
intended to bring out that the effect of
the bill would be to convert all debus into
gold obligations. Mr.. .Edmunds answered
that it would convert every government.
obligation except a few OF minor form in
to gold obligations. He stated broadly
the effect would be to make all United
States obligations payable in gold. But
as TO private obligations between citizens
he answered in the negative, saying that
a proyiso in the commission S aabIH de-
clared "that nothing herein connectsd
shall be construed or held to affect the
present legal tender quality of the silver
dollar or the subsidiary or minor CONS or
the paper currency of the United States:
Mr. Cox insisted however that the
logical effect of compelling silver to be
obligations, public and private into gold
obligations. On this point Mr.. IEdmunds
and Mr. Cox differed widely and were not
able to reconcile their views
Mr.. Edmunds said the commission
represented the convictions Of communities
widely scattered and had presented is
mature conclusions to Congress.
Mr. Walker said the committee appfe-
ciated the efforts of the commission and
of Secretary Gage in seeking to remedy
currency conditions. He asked If tho Dill
was designed to change the legal tender
quality Of the standard silver dullar. Mr
Edmunds said that it would not. Inc
only purpose WAS to give the silver dollar
a distinct reference to one fixed STANDARD
without naming ratio. Existing condl-
tions were not changed, but doubts were
removed. The present law was open to
different convictions and the committee
had felt it to be duty to make it so clear
as to be beyond doubt or differing con-
victions
Mr.. Walker suggested the question OF
expense, in carrying so large question
before the House of Representatives with
356 lnembers ready for months OF debate:
Was it desirable to invite such "a conflict
MIR. Edmunds replied that it depended on
the degree of doubt which the bill cleared
up. But on the question OF practical ex-
pediencey the commission had reported
what it deemed to be essential and right
to proper adjustment of the currency.
Representative Newlands, siiverite OF
Nevada, discussed with MI. Edmunds the
effect of the bill in contracting the cur
rency. Mr.. Edmunds did not believe con.
traction would occur or that bank re-
serves would be iBjuriously affected by
having the supply of greenbacks limited
and in part displaced by the demand for
gold. MIR. Newland specified the limited
quantity of gold in this country to which