The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-01-19
CAGE ON TIE BANKS AND GOLD.
.-.,.,rTARY CONTINUES HIS TALK
TO THE HOUSE COMMITTEE.

chairman walker Tries to snow
Tbot the Guarantee Required in
.be Gage Bill and the Monetary
u,1 IN Unsecured Circulation Is
noo Great-The Secretary and ex-
secretary FairebiId Reply That 1t
=, Retter 10 Have IL Too Large
Than Too Small.
washington, Jan. 1S.-Secretary Gage
-r,,seded to-day with the currency hear
a., before the House committee on bank
ing and currency.
ro-day's hearing took a general range
with view to developing Mr.. Cages views
on general financial questions, and his
t,5ement on various measures, including
his own. for currency revision.
chairman Walker, in series of ques-
ti,as sought to show that the guarantee
,.,,iire5 in the Gage bill and the monetary
bfu on unsecured circulation was too great,
thus imposing an onerous burden on the
hanks far beyond the losses which eXpe-
rience has shown would occur.
Mr.. Gage said that the safety fund in his
hill was placed at point which he re-
earded as safe, and if found too high it
could be reduced.
Ex-Secretary Fairchild said it was felt
that in a strain of this character it had
bean deemed best to make the guarantee
roo great rather than too small.
Mr.. Gage stated in this connection bis
objections to the plan of imposing mutual
responsbiity on all banks as proposed in
The monetary commission bill. 1t would
he an unfortunate requirement, he felt,
as if would operate to keep desirable banks
from entering the system and imposing on
themselves a responsibility for outside
hanks The banker, as a rule, did not
u-ant TO be responsible for losses other than
his own Whether the guaranty was to be
nv , per cent. tax on banks, as provid-
cd or by a mutual guaranty from all
hanks as the commission provided, or some
other adequate plan, Mr. Gage said he was
willing to concede this detail so long as
some safe security for the redemption OF
the bank notes was provided
The committee occupied the afternoon
going over the Walker currency bill.
Chairman Walker sought to show that OF
the pending currency bills, his stood the
bssi chance of passage, that ii was the
least Objectionable, because, while accom-
p1jshing similar results, it did not Haunt
before the minority interests the direct
preambe declaration in regard to the gold
mite standard. 1t would, he said, abso-
lutely relieve the government of having
ANYTHING to do with the current redemp-
ton of money of any nature, and from
keeping anything except ap ordinary ex-
cheouer balance as in private establish
ment.
Secretary Gage, referring to the state
ment of purpose in the Gage bill, as to
fixing the gold standard more firmly,
briefly explained why it was best TO in
corporate that declaration. The obliga-
tons of the United States, said he, are
payable in coin. There is a deep dispute
as to what that means. On one side of
Congress it is said that the government
can pay in silver, the other says gold
only: otherwise it is guilty of bad faith
and dishonesty as regards its obligations
So long as there is a debt there will be
constant pressure to open the way for
payments in silver and the contention
was that better assurances of maintain
ing the gold standard than now exists
should be given the country. So, the Sec
rotary thought that it was the wisest plan
10 make a positive and unequVocal de-
ciaration as to the purposes of the bill.
Secretary Gage and ex-Secretary Fair
child will be before the committee again
tomorrow.