The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-09
Secretary Gage's Plan.

Secretary Gage's Plan.
An examination Of the detailed re"
port of the secretary OF thc treasury,
MIR. Gugc, discloscs that earlier news
paper abstracts uf his currency reform
plan signally failed to do it justice
The plan IN skeleton ard the plan as
elaborated and mcidly explained in the
report appear to be widely different
things If the secretary disappointed
expectations at the Chamber Of Com
mercc dinner he has more than full
filled them in his first annual commune
cation to congress
The position assumed by Secretary
Gage is a medal one wrich will prob
ably fail to satisfy the radicals Of either
extreme but t. doubtless approximates
To what will be- the ultimate course oC
legislation. Reduced to a few words,
he contends that 1890 100000 Of credit
currency such as we have outstanding
. today is a top-heavy and unstable
structur" 10 rest for its security upon
only $1O0 1000 Of gold reserve; and
as between cnlarging thl gold reserve
credit money he favors the latter
course Because the government
through successive stages Of lcgisla
tiun has thus complicated our currency
system, the government, he contends,
must assume the responsibility and
cost of simplif,'in and reforming it,
His plan, then, is tc permit national
In se n 1phncit Il. Br
hacks, silver certificates or treasury
notes to the aggregate amount of $780,
100000, in return for which they are
10 be permitted to issue an equal
amount of bank notes, plus also an
extra $50,00C.CGJ secured by first lien
upon the banks assets. Present gov
eminent bOEds are to be refunded to
the extent Of 5000 900 into 2,s per
cent. gold bonds payable after ten years
at the nations pleasure, and these are
gradually to he put i'm place of the
$2OO,O0O,OOO in greenbacks, silver certii-
Gates and treasury notes deposited by
the banks as a basis of circulation the
paper tokens thus lifted to he carried
into an issue and redemption depart
or reissue only in exchange for gold.
Bank notes thus issued are to be
guaranteed by the government, and to
secure the government against loss
from this quarter, the banks will be
required to pay a tax of , per cent. on
all unsecured circulation and also keep
in the treasury a 10 per cent. redemp-
In, h.,,. 1 9
the government having to struggle
under the responsibility of redeemng
its note issues, from which it derives
no profit whatever, it is proposed so
to replace these government note issues
with bank notes that the banks them
selves, while gaining in privilege Of
circulation, must thereafter pay the
freight The government to the eX-
tent of S2OO,0OOOO will so out of the
banking business only so far as to
make the banks shoulder the load as
well as share the benefits.
1t is to he noted with qualification
that Mr. Gage proposes to bite off at
the beginning only as much as he
thinks he can conveniently chew. His
plan would retire $2OO,OOO,OOO of govern
mcnt credit money, substituting in
lieu thereof $25O,O0O, 900 Of money rest
ing ilatly on a gold basis. but il would
leave untouched about $2l90O 900 re-
manning government credit paper, not
10 mention the deprecated silver coins
and silver certificates. The conversion
of this could be made later in the
event that the first experiment should
prove successful. He wisely argues
for caution and common sense in the
rather than for the impetuous ana rcc<-
less air!n,: of theories; and his Whole
tone is 80 different from the dogmat-
ism which has made offensive past
MugWump discussion Of this subject
that he will carry conviction where
many currency reformers have sue
ceeded only in exciting intense opro-
sitiOn.
We recommend to those of our read
Crs who did not read the very ample
summary in Yesterdays Tribune If
Secretary Cages report that they take
carly occasion 10 give 10 It their care
full consideration. The subject which
ii presents is one sure to become Iromi-
ncnt in the political discussions Of the
next few wears, and the manner of IT'S
presentation Is such as to remove many
Of the misconceptions and Inisappre-
tensions which confuse The popular
understanding,