The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-01-19
CURRENCY HEARING.
Secretary Gage Explains His Plan of
Establishing the Gold Standard.

Washington, Jan. 1S.-Seeretary Gage
proceeded to-day with the currency
hearing before the house committee on
currency and banking. To-day's hear
ing took IA general range with u view
to developing Mr.. Cages views on gem
/ eral financial legislation including his
own of the currency revision. Chair
man Walker. i'm a series OF questions,
sought to show that the guaranty re-
quired on the Gage bill and the none
tary bill on unsecured circulation was
too great, thus imposing an onerouS
burden on the banks far beyond the
losses which experience had shown
would occur.
Mr.. Gage said that the safety fund
of his bill would be placed at a point
which he regarded safe. and if found
too high il could be reduced. Ex-See-
rotary Fairchild said it was felt that in
step of this character it would be
best to make the guaranty too great
rather than too little.
Mr. Gage stated in this connection his
opposition to the plan of imposing mu-
tual responsibility on all banks as pro-
Vidcd by the monetary commission bill.
1t would be an unfortunate require
ment, he felt, as it would operate to
keep desirable banks from entering the
system and imposing on themselves a
responsibility for outside banks
The banker as rule did not want
to be responsible for losses other than
his own. Whether the guaranty was
to be by = per cent. tax on banks
as he provided, or by mutual guar
anty from all banks, as the commits
sion provided. or some other adequate
plan. Mr.. Gage said he was willing to
concedc this detail SO long as some
safe security for the redemption of the
bank notes was provided
The committee occupied the after
noon going over the Walker currency
bill Chairman Walker sought to show
that of the currency bills pending, his
stood the best chance of passage. that
ii was least ohjectionab bic because
while accomplishing similar results il
did not fiaunt before the minority in
terests the direct preamble declaration
as to the gold unit of standard 1t
would, he said absolutely relieve the
government of having anything to do
with the current redemption of money
of any nature and from keeping any
except an ordinary exchequer balance
as in private establishment,
Secretary Gage. referring to the
statement of purposes in the Gage bill
as to fixing the gold standard more
firmly briefly explained why it was
best to incorporate that declaration
The obligations of the United States.
he said, are payable in coin. There is
deep dispute as to what that means
vi the one sue Oh the congress ii is
SAID the government can pay in silver:
the other says gold only. otherwise the
government is guilty of bad faith and
dishonesty as TO obligations. So long
as there is doubt there will be con-
slant pressure TO open the way for the
payments in silver. and the contention
was that better assurances of main
tanning the gold standard than now ex-
list should be given the country So
then, he thought it was the wisest
plan to make the positive and unequiv-
ocal declaration as to the purposes of
the bill.
Secretary Gage and ex-Secretary
Fairchild will be before the committee
tomorrow.