The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-01
FINANCIAL IDEAS OF THE NEW
SECRETARY OF THE TREAS
URY.
RETIRE THE GREENBACKS.
SILVER SHOULD BE SOLD AND
TREASURY NOTES RE-
DEEMED.
MORE OF MAKESHIFTS.
Statements Attributed to the New
Secretary by the New York
World.

d NEW YORK, Feb. IA special to
the World from Chicago says: "The
World submitted in writing to Mr.. Ly-
man j. Gage number of questions con-
corning the most vital issues with
which he will deal as secretary of the
treasury. Mr.. Gage with great candor
and courtesy makes his position quite
clear on all of them as follows:
Our whole monetary system is the
resultant Of makeshift legislation and
unscientific compromises. 1t is time
that reforms began.
I'm my own opinion the greenbacks
should be permanently retired The sill
yer purchased under the Sherman act
should be gradually sold, and the treas
ury notes redeemed and Cancelled. Some
well-guarded system of bank note cir
culation, broader and more elastic than
the present national bank act provides,
should be inaugurated.
'.Such bank notes should be redeem
able at central place and be redeem
able in gold only.
Silver certificates, which form
nearly one-fifth of the circulating me-
dunn Of the United States, are danger
Gus. By their use volume Of inferior
money has found an abnormal use.
TEey are the most perplexing feature
in the much involved problem Of our
national finances.
There is no reason why the gov
eminent should act as a warehouse
man for either gold or silver Such a
function is outside it's proper limit Of
action.
But we are faced by a condition.
The enormous amount of $500, 100000 OF
silver, represented by 1888, 100000 in sill
yer certificates, added to the $3.50, 900, 900
purchased by the government under
the sherman act, constitutes a stand
ing menace to every business interest
ITO sum up, the defects Of our pres
ent currency system are:
First-CCnfusing heterogeneity which needs
simplifcaton.
Second-The greenback controverts the prin-
clple OF paper money, viz That every note
represent an existing commercial value.
Third-The treasury note is a standing evil
dence OF foolish Operation-the creation of
debt for the purchase on falling market of
a commodity for which the purchaser has no
use; it lies open to the just charge of being
both 1diotic and immoral.
Fourth-The national bank note merely
conforms to the true principle of paper mon
ey, but the unreasonable requirements for
security paralyze its efficiency and operate
to destroy its elasticity.
eiA' Oi the
use OF silver to larger extent than is con-
slstent with the safe preservation of that
metal on parity with gold.
Would national commission help
to promote reform?''
There is no reason to hope that it
would be Of great service in that di-
rection. Such commission, if rightly
elected, would throw a flood of light
upon these involved questions The in
formation it might gather would be
OF immense value to all our people,
and would guide us to wise legislation.
Emotion and sentiment are not safe
guides in matters of science A clear
apprehension of true principles will
lead to correct action.
Reaction will be slow, but it is COM
Ing, and 1t will be of long Duration"