The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-01-13
CHANGES IN THE CURRENCY.
HOUSE COMMITTEE HEARS M0NE~
TARY COMMISSION.

tai Principles to He Considered i'm
Establishing IA stable Currency
Gold the Hest Standard Becauso
the Most StabIe-Attempts to Hava
Two Standards Always Followed
by Disaster.
Washington, Jan. 12.-The monetary
commission was given a hearing to-day
by the House committee on banking and
currency on the commissions bill provid-
ing for a comprehensive revision of the
| currency. Ex-senator Edmunds Of Ver~
mont chairman of the commission, head-
ed the delegation, and with him were ex~
Secretary of the Treasury Fairchild OF
New York, J. w. Fries Of North Carolinas
representing the Gold Democratic senti-
ment of the South; T. ]. Bush of Ala
bama and Judge r. s. Taylor of Indianas
representing the Middle West.
Secretary Gage was also present. accom-
panied by the solicitor of the treasury.
The hearing attracted much interest, a
number of the members of the House, ac-
companied by ladies', being present.
Mr. Edmunds was the first speaker. He
said that the fundamental principle which
the commission had felt was to be consid-
cred in establishing a stable currency was
to first know what the standard value in
this country is and is to be.
Mr.. Edmunds referred to the experiences
of most nations OF the world. all showing.
he said, that a single standard meant sta
bility and safety. while attempts at double
standards meant disaster and panic. From
this universal experience Mr.. Edmunds
said he and his associates had come to
the conclusion that the first principle on
which to base currency was to have
one standard; that gold is the best stand
ard because II Is the most stable OF alf
standards of value.
THAT conclusion was reached" Mr. Ed
munds, added. with no preJudices, with
no private political considerations. but
solely from the conviction of those OF the
commission representing the various Sec
lions of the country"
Mr.. Edmunds. then took up the PROPOSE
tion OF the commissions bill proposing a
retirement Of the United States notes, ex-
planning and urging this on the lines OF
the commissions reports. He closed with
strong appeal for early action.
Representative Cox. Dem. of Tennessee
pr0pounded a series of questions intended
to bring out that the effect of the bill
would convert all debts. public ana pri-
Mr.. Edmunds answered that II would
convert every government obligation, ex-
cept few of minor form. into gold obii-
cations. and stated broadly. the effect
would be TO make ell United States obi-
cations payable in gold But as to private
obligations between citizens, Mr. Edmunds
answered emphatlcally In the negative.
Mr.. Walker asked IL the bill was design
ed to change the legal tender quality of
the standard silver dollar.
Mr.. Edmunds answered that II would
not. The only purpose was to give the
silver dollar a distinct reference to one
fixed standard without naming a ratio.
Existing conditions were not changed, bup
doubts were removed.
Mr.. Walker suggested the question of
expediencey In carrying SO large guess
| tion 10 the House of Representatives.
with 1856 members ready for months OF de-
bate.
Mr. Edmunds replied that the commls-
sion had reported what 1t deemed TO be-
essential to a right and proper adjust
ment OF the currency. and IL desired To-
stick to that right thing despite guess
| tions of expediency. This brought a
round OF applause, the first Of the day
Representatives Newlands, Sill, of Me-
| yada, discussed with Mr.. Edmunds tha
| effect of the bill in contracting the cur
! rency.
Mr.. Edmunds did not believe that con.
| traction of the currency would occur on
| that bank reserves would be iniuriousIv
affected by having the supply OF green-
backs limited. and in part displaced BY
| the demand for gold.
Mr.. Newlands asked If the world had a
| sufhcieney of gold
mot a sufficiency OF gold or of vir-
| tue answered Mr.. Edmunds, land thar
| Is why we are struggling for both THAT
is what led to the rush to the Klon--
dixie"
| He Drefaced this, however. by savings
| that monetary stands were no more sub
| Ject to governmental control than were
the tides ana winds. 1t was not a ques-
| ton OF economical operation The gov
| ernments had standards enough already Ia
| existence. When government sought 70
| make standard It merely Interrupted
| the natural law and embarrassed the
natural existing conditions.
The question was not one Of theory buE
one of fact, the same as that of the ex-
istence of steam or electricity. IL was no
| more impossible for a law to ignore this
fact or natural standard, than TO ignore
! the existence OF electricity. Making a
| thing a legal tender gave IL no inherenr
value The great body Of the people, he
said. used banks as the benefcent insfru-
| ment of civilization, and il was the peo-
pie. not the bankers, who were helped by
wise government action.
This view, he said removed narrow
| prejudices and placed the subject on =
| broader public plane. The discussion Of
| the banking feature Of the commissions
| bill was not to facilitate the natural op-
erations Of banking and exchange. buc
asking the governments aid toward RAJ.
| pidity, certainty and safety
/ Mr.. Cox asked If he was right In un-
| derstanding that the measure accom-
| plished two things: First the establish
| ment Of a gold standard; second the re-
! tirement Of all paper currency, except ma
| tional bank ndtes.
| Mr.. Fairchld assented TO this saying il
was the practical effect OF The bil
| Mr.. 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 the
movement in favor of currency reform
| and fail to embrace the opportunity to
/ execute It. There were senators so bound
| up in the tariff they wanted to show tho
| people that the tariff could accomplish
| rythng. But the tarif could not cure
| the vital evils OF the currency. 1t was
| quite as important for members OF Con-
/ gress to meet these evils as to construct