The Portland daily press., 1898-01-13
Pursuing his questions, Mr.: Newlands
asked If the world had sufiiclency OF

Pursuing his questions, Mr.: Newlandss
asked If the world had su11clency OF
gold. -,
mot sufficiency of gold or OF virtue
answered Mr.. Edmunds, and t4ab Is
why we are struggling for both: lt was
this that led to the rush to the & klonalks.
Speaking in droll fashion MIR. Edlnunos
said that he thought that II Mr.. New
lands and himself looked after themselves
and lived ten years more they mlgnt see
such great stores Of gold discovered 1naV @
1t would be necessary to make silver Ine
standard of yalue because of its becoming
the more precious OF the two metals.
Ex-Secretary Feirchild next spoke Q, on
the banking features of the bill. I1o
prefaced this, however, by saying thaJ
monetary standards were no more subJect
to governmental control than the tloes
and winds 1t was natural and eco
nomto operation between individuals, IN
which each sought the best. Govern
ments had adopted standards already in
existence and thus serving the con-
venience of the people, but they had never
created standard. When government
sought to make q standard, is merely in
terrupted the natural law and embar
raised natural exchanges. 1t was no
more possible for y law to note this fact
of natural standard than to ignore the
existence of electricity. Making thing
a legal tender gave it no inherent value
Ex-Secretary Fairohild said that
the main ground for government interfer.
enoe in bank note circulation was TO
facilitate the rapidity of exchange by
giving regularity to an otherwise natural
operation between indidivuais. So as to
the government stamp on coin. The gov
ernlnent should aid in the natural opera
tions of exchange by aiding the rapidity
of money transactions and beyond this
the people should be lef5 to themselves.
This government service was not SO much
to the banks as to the great body of the
people who use the banks. The bankers
could place their capital elsewhere. But
the grean body Of the people used the
banks as benefcent instrument of
civilization and it was the people, not the
bankers, who were helped by wise govern
ment action. The design of the banking
feature OF the commissions bill was to
facilitate the natural operations OF BANK
ing and exchange by adding the govern
ment's aid toward rapidity, certainty and
safety OF these exchanges.
Mr. Newland moved that the commit
tee on ways and means and the commit
tee on coinage be invited to participate IN
these hearings.
Mr.. johnson of. Indiana opposed the
motion.
The motion was defeated, MIR. NeWlands
carrying the only vote for it.
Mr. Eairchild then went on with his
statement. He said the banking features
of tho bill sought to follow natural lines
by binding all the banks resources
rather than requiring deposit OF bonds
with a government trustee. 10 accom-
plish this all the banks were bound to-
gether in common action in a protection
of all the notes they issued. From per-
sonal inquiry, all the Losses from national
bank failures in 1898 would have occa-
stoned tax of less than one-elghth or one
per cent on the combined banks II this
proposed measure had been in force. such
q tax would not be an exceptional burden
fraud was infinitely small Mr.. Fairchild
said that the commission confined It's
plans to the protection Of bank notes not
to the protection of depositors as the
latter had private contract obligation
in which it was not necessary Tor the
government to enter.
Mr.. Cox asked if he was right in under
standing that the measure accomplished
two things. First, the establishment Of
the gold standard; second, The retirement
of all paper currency except national bank
notes Mr. Fairchild assented to this say
ing it was the practical effect of the bill.
Mr.. Fairchild will proceed with his state
ment tomorrow.
MIR. Bush of Admission, Ala, a member
Of the monetary commission, was next
heard. He said it would not be to the
credit of any party in power to check this
movement for currency reform or to fall
to embrace the opportunity to execute it
There were some who were SO bound up
in the tariff that they wished to con-
vince the country that the tariff would
accomplish everything. But the tariff
would not cure the vital evils OF the cur
rency.
At the conclusion of Mr.. Bush g state
ment the committee adjourned until to-
morrow.
Chairman Walker and Representative
Fowler of the committee met members of
the committee tonight with view to see-
ing if there was any basis of agreement
between their financial bills and those of
Secretary Gage.