The sun., 1901-12-11
MIR. Gage on the Bond Purchases.

MIR. Gage on the Bond Purchases.
In an interview published in ycster-
DAYS Sun. the Secretary Of the Treasury
declared that the impression that his
bond purchases were being abused and
that his effort to put more money in
circulation was being defeated by the
action Of the banks in retiring 5000
900 of their own circulation, was based
on Misunderstanding. Mr.. GAGE stated
that as the Treasury is not now buying
. per cent. bonds and as about 50
per cent. Of the current circulation
retirements were in the per cents, il
is evident that the banks which have
recently effected retirements OF circula-
ton have not done so by selling bonds
TO the Government. Mr.. GAGE averred
thai while $1,000, 900 worth of bank
notes have been recently retired, new
circulation TO the amount Of SG,0cO,0U
has been issued, so that the net clrcula-
ton of the country has not been dimin-
,shod. Tor the sake OF accuracy. We
quote Mr. CAGES defence in his own
words TO the charge that the Treasury
is paying too high a price for the
bonds.
We have not paid more than VIC paid under the
oner of Apru 10 last. when the prices were deter
mined BY the average market value Of bonds
which had prevailed In the New York market for
several months before Therefore. We have no,
p.ld ARTIFICIAL prices. nor. In other words made
buyer "a ihe bond market
ii is true that the Treasury is not
now buying any of the per cent. bonds
on which the bank note circulation OF
the country is largely based But il Is
also true that the price al which th"
Treasury IL redeeming other bonds
tend, 10 advance the current mar ,ct
rate for the per cents, and 10 make
II possible for the banks retiring their
c..culation "a sell these bonds IN the
markc, at high figures. - far ~ the
net Increase of S.. .OON no ia the country's
circulating medium that has b,,' OBJ
tanned It seems, To begin with, that Il
Is rather an oKtravagant luKury to pro-
cure by any such redemptions at extraor-
dinary prices ~ have been recently ao-
cDmplshed The truth about the matter
is however ar Mr. GsGE must know very
we'll that the retirement of circulation
has only just begun, while the Govern
m.nt bond redomptions have gou" IN
Tor q long time In the course II two
or thre. months II things ~ on as
they ARE going NJ the present moment
there Will be a considerable droIeass m
circulation lIactly IA" wny iu which
he buoks lp,k al tie matter MAJ b"
gathered dearly from the uag alh
printed H. 1HErrN n last SUNDAY
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