The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-02
FIR. CAGES CURRENCY PLAN.

fore the Cabinet last Friday to get ah.ad
OF the Monetary Commission. 1t has
been announced that that commission
viii reaesemble on November Srd, and VIII
shortly thereafter announce its plans OF
reform. and Secretary Gage resolved that
no volunteer commission should pluck
honors that properly belonged to the head
Of the Governments finances.
There Is one feature In Mr.. Cages plan
which is entitled to unstinted praise. lie
proposes that the Government shall issue
a two and a half per cent. bond, principal
and interest payable in gold as the basis
OF his new currency. lie may recon-
mona anything else that he chooses If he
will only get Congress to pass an act
providing for Il csc bonds. 1t would be
purlic notice TO the whole world that the
United States were done with the free
silve, nonsense, ana for the world 70
become thoroughly satisfied Of that would
DO worth more 10 this country than the
finest mathematician in the world could
compute.
We do not feel hopeless about his pass
ing such a bill The Republican platform
gees no furthe- in respect TO silver than
to coclare for International bimetalism.
Wo'oott's mission has thoroughly tested
that. and he is on his way back home
10 tell his fellow-Republican Free-silver-
ites that IT IS breath wasted 10 talk TO
Europe about international bimetallism.
When, therefore the administration pre-
sents its measure 10 the Senate. Re
publican senator's will be forced 10 choose
between standing by their party or go
ing 70 tho emocratic-Populist combina-
ton. and wo rather think that with that
issue before them the Republican sena-
tors will stand together. The Admins
tration has a good chance, therefore, 10
pass a bill providing for Mr.. Cages gold
bond. and II It does that IT viii entitlo
itself to the grateful thanks Of all the
American people
Having said this much IN appreciation
Of Mr.. Cages plan We have said all that
we can say in approval Of IL.
His suggestion Of q new department OF
the Government TO be called the issue and
redemption department IS nothing but
part Of n trick 10 fool the people into
surrording s2Oo0OO.O0o Of the Governments
outstanding notes. All Of these ought 10
be surrendered and cancelled but the way
10 get that done is 10 move for it openly
and above board. a trick OF this sort will
be seen through n once, and will fool
no ore.
But we have no idea that the bait he
offers will catch any banker. Tie pro-
poses to give a banker who deposits
greenbacks an exemption from the tax on
his notes. That is the inducement 10 him
to deposit notes instead Of bonds. But
no time is fixed during which he is 10
have the redemption. It may be cancelled
at any time at the pleasure Of the Sec
rotary and then the Secretary is TO put
the bonds Of the banker at their market
price. They may be abnormally high
and a rumor Of war or anything else may
put them down. This VIII make the bank
or take the risk Of the ups and downs Of
the bonds. and he will not be willing
to do IL. A half per cent. tax exemption
IS not temptation enough TO him to in
duce him to take that risk lie will de-
post bonds rather than notes, and moth
irg will como OF this trap.
But this is al by the way The i'm
portant question is will Mr.. Cages sus-
gesticns OF currency reform bring the
country the nccdcd rclief' We have no
idea that they viii. It IS uncertain upon
tho face Of his paper whether he in
tends that banks may issue currency TO
the full amount OF their capital or to only
ore-haif with the additional twenty-five
per cent. OF the securities deposited. We
are inclined 70 think he contemplate this
621-2 per cent. OF the capital only.
But in neither event will the country
people get the relief they clamor for. The
Government is to endorse all the notes
that arc issued. and, this being so. all OF
them will 60 to the commercial centres
and leave the country people as bare OF
currency as they now are. II Is Of no con-
| sequence that a small bank Of $4,000 IS
| sues G21-2 per cent Of such notes. they
viii not stay amongst the people where
they are issued. but will all so of 10
New York and Chicago. This is demon
s;rated b. what takes place every fan in
tho South and the West. New York sends
millions Of notes into those regions in the
| fall TO move the crops. These notes are
not sent there to pay for cotton and
grain. These are paid for by exchange.
They are sent there to pay labor so that
they get out amongst the people. But in
three months all OF them have been gath
| cred up and have been sent back to New
York. II is the law OF their nature, by
which they are governed This same
| thing will happen with all the notes that
| Mr. Cages small banks issue. The pro-
cuCe and stock spectators will call for
all that are issued, and as more Of them
| come the spectators will increase. The
/ thing is automatic one creates the other.
| Mr.. Cages plan is nothing but amplii-
| cation of the national bank scheme,
| and that can never be made to suit the
| agricultural regions OF our vast country.
| The people must be allowed 10 have their
local hanks to issue local notes that wni