The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-01-18

profitable circulation. Mr.. Gage said it
would be impossible In this country TO
have general rate of interest, as pre-
vailed in England, where the Bank Of
England fixed the rate. Here II varied
In the many states. under statutory law
and the banks of the country had never
been able to compromise on a rate of in
terest. Mr. Fairchild said the rate of the
Bank OF England was governed by the
money rate. which compelled the estao-
lishment Of a bank rate. To this ex-
tent London and New York were on the
same basis. each interest rate being re-
sponsive To the market and the law of
supply and demand.
Further questions brought from Mr.
Fairehild the statement that one of the
effects Of rise In interest was TO check the
denard for geld. and this was the eN-
perience of the Bark of England
Mr. Fowler asked If a 6 per cent rate
Of Interest would not stop the flow of
gold from this country. Mr. Falrchild
thought it would If the gold standard
was in operation.
Mr.. Gage responded to another extend
cd question that confidence depended on
the assurance of redemption Referring
20 the endless chain process. Mr. GAGE
said II was figure of speech APPLYING
TO al! financial operations where obIisa-
tons came in and went out on circle.
operation was not "a horrible thing" but
was right and necessary. Mr.. Fairchua
asSented to this. saying this circle hv
which redemption was accomplished was
essential In banking but the evf law ~
The fact that the government had not tie
banking facilities TO make this redernya-
lion absolutely regular and certain Lack
ing those facilities. fear was {nsrY3re1 ana
the demands for gold increa Sod.
Mitchell - New York called attention -
ira provisions OF the Gage bill for the ac-
emulation a greenbacks in the treasury.
chain
Gage said that as applied II the govern
ment ne endless chain was preiudicia} be-
cause t1e demand liabilities If the govern
Teut We're ~ great me theoretical nravi-
sAon OF gald is Inadequate to eve conf
Gence 81 prompt redemption "4n1 shat"
sad Gage, IS a source ~ an v,sal s-AsS
Gage made 2 general statement - What ha
hoped 10 So ultimately accomplished as =
permanent daanc.ai system.
II would - a condition Of affairs vr.ta
national banks made safe 30 th.4 r-f,f,!a
Wlsaaut si,ectit- security therefor wisely
evils rs might arts and WIZ the enfi~e
eimihsuon q the United States govern
debts 10 payment"
WHY not accomplish ttis ROW >" asked
Walker
Theoretically. there Is 10 reason ehv Il
should Hot DO done new: practically tSrra
are many reasons. The pre- disposition -
t1e people Il in favor Of government rs5.ez
] heieEa ths econonlic loss n the lsrsy,ls
from ih&1 system, although unknown ONT
weighs 20 narrow advantage, II rs,.s r,lsea
saving az Interest reserved bv These rr0,s-
eminent notes. Hu.. CsNuot ca4uEs ire
minds - IRE ueople Thev ar tsrf4 sr3
suspicious q bank note issues Tncv a.
Net 1@+feFe thaT any or can Uphold . s~S~
ten such hays sket chsts ot,t zr;.5c,sf
seiASA ao3 Srf3id motives They far II fss-
wolves hazard and loss They recall ere
T@~lod 81 wildcat banks II IL dezrs hle
therefore % make the @rst seen 50 sirylvs1q a 5
10 show he peopis that II involves ~ a. =
g.Ts. 50 tEat II tire The fa4 Seyeloor1,eyst
- tf'a 2ian would be responsive - lgsh3le
- nttTea:"
At I%-S5 GzEe's hearing cloSaJ ur.u -
morrow, ~ agteT-rtcszs wraneie over no
tors % restrict TIE tixy.a 81 the ron, -Y,fs--s
members II 'rterroeaying witnesses de-
layed the SESSION Of the banking and cur
rency committee for over an hoar IL ire
course OF tae discussion NeClesrv % Mn
reso.a made the statement that every Rs
publican on The committee favored the gold
standard proposition Of ne monetary COM
mission sln. when Hl.t u Connecticut pro-
tested that this vas not correct. TIE ax-
animation - ex~SecTetary FalFcALa was
taes resumed
BLACK burns DauG liter VIII Recover
WASHINGTON. Jan. Mrs Yare