New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-18

on hand there was n tendency to distrust II not
panic and TO a demand for specie -,
Mr. walkers questions took a wide range GONG
into the technicaties and theories OF ii", "a va.
scenSc the effect OF Mr. rise CAKE IN "sd Mr. arcbd
aternated in giving their views. which IN ths MAJ,
conditions most conducive to profitable circulation.
Mr. Gage said II would be Impossible IN 'his 'ou,-
Try TO have a general rate Of interest. as pre-
vailed In England where the Bank OF tns'hnl
fixed the rate Here II varied IN many St"tes, .,
der statutory law. and the banks Of the country
had never been able to ccaescc on ruling rate
Mr iarchild in turn. explained that the rate
~ Tho RANK Of E,ngland was governed by thu mar
kei rate which compelled the estaolishmsnt OF trs
bank rate. TO this extent London and Ne" y or
were on the same basis. each Interest ratte Deins
responsive TO the market and the law Of supGy
and demand Further questions brought from III =;
Fairchild the statement that OF the effects 81
rise IN interest WAS to check me deh 1, ~ ~
gold. and this was the experience OF TIE BANK VI
Hir' Fowler asked II n per cent rate Of IN, eres,
from ms country. Nr Fairchild thought Il would
If the gold standard %as in operation ID, ores.
don that confidence depended on the assurance OF
coin redemption.
THE ENDLESS CHAIN" DEFINED.
Referring to the endless chain" process Mr.
Cage said IT figure OF speech applying 10 ail
financial operations where obligations came In and
went out in a circle SO long the obligations
were met the operation was not horribe thing
but was right and necessary. Mr.. Fnirchnd A.
scnted this. saying this circle by which red.mp-
but that the evil lay In the fact that the Govern
ment had no, the banking facilities 10 make ms
redemption absolutely regular and certain. La h.
ing these facilities fear was Inspired and the De-
mand FOR gold increased.
MIR Mitchell. OF New York. He'd attention 10
the provision OF the Gage bill for the accumulation
Of sreenbacks in the Treasury for the purpose Of
prfventing the endless chain"
Mr.. Gage said hat as applied TO the Govern
ment the endless chain was prejudcldl, hecau.e
The demand Liabilities Of the Government were 20
great mar the n10rG ro, P,Hv9 nd 20 Eve nona
d"nce OF prompt redemption and that was source
Mr Gage made a general statement Of what he
hoped TO see ultimately accomplished as permn,
ncnt financial system. 1T would be coniitloh oi
affairs with National bank notes made safe 20 the
people. without specific security therefor Nlscy
restricted by law az 10 proven; such Owls as
might arise and with the entire elimination Of the
United States Goyesnmen; from paying It's debts
Why not accomplish this now?' asked sir.
Extraordinarily there is no reason why 1t should
not bc done now practically there arc many rea.
sons" replied Mr.. Gage. The pred.spos.ton OF
the people is in favor Of Government notes. be
lleye the economic loss to the people from this -
TEN. although unknown, outweighs the narrow adj
vantage Of the mere saving OF interest secured py
minds Of the, people. They are timid and srSpi,
sketched without selfish and sordid motives The!
period OF wildcat banks II is desirable therefore
TO make the first step so simple as TO show the
people that It involves no dangers so that Ia time
spOnslye 10 public sentiment.
The extent Of gold shipments was gone into. Mr.
Prince. of Illinois brought out the point that since
Sir. Gage had been i'm the Treasury the gold sup
ply had increased from sl55,0o0ooo to Sl62@0go
At i2:a0 Mr.. Cages hearing closed until to-mor
when he will spend the day before the com
mittee.
After recess a wrangle over motions and counter.
motions to restrict the time of the committee mem
for over a am hour bs illumination of
EairchIld was then resumed.