Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-10-21
Cages Plan of Currency reform.

huNo pocu IElbbci, gives INC lulIoMiuB
as substantially correct version of the
proposal the Secretary submitted TO his
friends last summer:
!. Tbs issue of gold bonds, redeem
able, at the ontion Of the government,
after twenty and within fifty years, bear
ing interest at the rate of 2ls per cent;
these bonds 10 be used for refunding
the whole present bonded debt OF the
United States. as far as practicable. by
exchanging them for outstanding bonds
OF any issue on an equitable basis as to
interest, also, 1900, QUO, 900 of them to
be sold for cash.
.. The establishment Of separate
bureau in the Treasury, to be devoted
to ana entitled Tissue and Redemp-
tion;" fund of 1926, 600, 600 of gold to
be deposited in this bureau, made w
OF the gold already on band in the
Treasury, supplemented by the proceeds
OF the bond sales Just provided for the
bureau to redeem outstanding paper
money when offered for that purpose,
but TO disburse none Of this paper
money in turn except il exchange for
gold.
3. The extension Of the national
organization of banks with only $50, 600
capital in towns of 1000 inhabitants
or less; the repeal of all the tax on
bank circulation, except such amount
as may he necessary to pay the cost of
supervising the system and creating a
safety fund of So, 600, 900, which need
take only two or three years; authority
to the banks to deposit the ~ per cent
FafnnnlnD 10
their par value, Grst TO the extent Of
each banks capital, and then to % per
cent above that, the government secur-
ing itself by it's first lien on all the
assets Of u bank, by a redemption fund
of 10 per cent kept constantly on de-
posit as the 5 per cent fund is kept now,
and, finally, by the safety fund already
mentioned; provision for the redemp-
tion OF all notes III New York, and in
other reserve cities if dssired and the
restriction of bank notes to denomina-
tons of $40 aud upwards, with discre-
ton vested in the Secretary of tina
Treasury to issue silver certificates and
all government notes in ones, twos, fiYes
and higher denominations, as his best
judgment may dictate.
This, the correspondent adds, ia the
basis of Mr.. Cages plan, in defence of
which he stands ready to show that the
present annual interest charge OF $50,
0O0, 00b on the bonded debt of the
United States would be reduced to
$50, 900, 900, in spite of the increase in
the volume of bonds as proposed in the
first paragraph. The outstanding de-
mand liabilities of the government, in.
Guiding all forms of notes and certifi-
cates, now amounting to s842, 900, 600,
would, the Secretary thinks, through
the redemptiuus conducted by the Issue
and Redemption Bureau, with the $780, :
OO0, 600 OF gold received from tho sale
OF boDds, be reduced to SG42, OOO, 600,
aud the SIPS, 900, 900 of gold held
against this would amount to about 20
per cent. Finally, the increase in bank
note circulation would fill in the gan
caused by tho redemption Of 5000, 600, 1
600 OF the various forms Of government
paper money. Assuming that tho banks
would take advantage Of the extended
opportunity for issue, and adding 500, :.
5G0, OOO for the ~ per cent margin now
idle, and SIP. 900, 000 for the % nor
cent of excess, there would be total
increase of Sl3i, 800, 900 il the paper
currency ailoat, which 10 expected to
gladden. the hearts of believers in tho
quantitatiye theory of money, as well ns
to satisfy the Legitimate demands Of the
business community in tho South and
West Iu the crop moving SCISSORS, for
instance, tho excess issue allowed to ths
banks would save those in the sections
named from borrowing large sums in
the East. The South alone could thus
save the interest on loans of SIT, 900, 600
or SIS. 900, 600 every year.
The restriction OF the bank issues TO
notes for $40 and over ia intended to
give the government monopoly of the
issue OF the small money used by the
mass of the people in their daily hand.
to-hand transactions. The Secretary
could, by gradually changing tho Treas
ury notes OF 1890 into silver coin or
silver certi ficates, gradually put large
part of the minor trade of the country
upon a basis where that at least need
never menace the integrity Of the
Treasury gold reserve. Tho idea Of the
entire withdrawal of the greonbacks
from circulation he confesses he has
abandoned, not because no does not be =.
lieve in it, but because he considers it
politically impracticable.
1t is matter of regret that the head
Of the country's financial department
should be compelled to admit that any
measure of financial reform in which
he believes is politically impractica-
BILE, but such is the fact. There are
So many statesmen" in Congress who
know it all"--how to run the finances.
the army and navy and every other de-
partment OF our government in tho
most complete manusr-that ii ia i'm
possible to get any measure of currency
reform enacted without having the i'm
press of their craftsmanship" indoli
bly, stamped upon it,
There are good points included in
Secretary Gage 8 suggestions, and even
IL they do not cover the entire ground
there is no doubt that thoy would
effect vast improvement over the
present Unsatisfactory and threatening
system. 1t rumnins to 10 seen, how.
ever, what President Mckinley win do
about the matter. l'hora is a fear that
he will do nothing, relying upon the
DirGley bill as puuacea for all national
evils. But no tariff will remove I'm