The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-11-06
GAGE AND OUR MONEY.

The congress, in pursuance of infiat-
DRY steps already taken, in the way of
a currency commission, will attempt a
permanent settlement of the money
question this winter. Doubtless great
weight will be accorded the conclusions
and recommendations of Secretary of
the Treasury Gage, who was appointed
to his present position because of his
conceded financial ability. The Demo
cratic leaders outside Of the Bryan ilk
are anxious TO get the question settled
and the silver perplexity relegated be-
fore another national campaign. The
administration and the Republican
party are pledged TO such course. Sec
rotary Gage has partially formulated
and presented his scheme of currency,
which he expects will prove a remedy
for existing evils and fix and make dur
able public and private securities. He
holds that the foremost difficulty is
found in the problem CT how to main
tain our vast paper currency at par
OF paper must be kept SO as to be re-
deemable in gold. His first recommen-
dalton is that department shall be
created in the treasury to be known as
the Bureau of Issue and Redemption,
and that there be turned over to it the
sum of S125, 100000 in gold coin which
shall only be employed to redeem paper
money, such as treasury notes, green
backs and the like. These notes he then
proposes, shall not be reisSued except
in exchange for actual deposits of gold,
which, when thus received, shall be held
solely for purposes of redemption. The
effect of this plan would be TO place the
whole business Of issue and redemption
on a definite working basis where its
operations could be regulated by simple
principles of sound finance and free
from the loose, improvident asd danger
Gus methods which now control it.
With this much accomplished, the rest
of the needful work in currency reform
would be greatly simplified. Mr. Gage
believes that the loan bonds which are
10 mature in 1904 and 1907 could be re
funded at low rate of interest-say
215 per cent-and that if the govern
ment were to do so, making the new
issue specifically payable in gold instead
of in coin as now provided, the result
would he an immediate strengthening
of the public credit To adjust the
whole range of government obligations
to an explicit gold basis without causing
any serious contraction of the currency
Secretary Gage favors several very inn
portant changes in the national bank
law. AT present national bank cannot
be organized with a capital of less than |
$4,000. The secretary recommends !
that banks be chartered with a capital |
Of $4,000 in towns having 1000 inhab- |
itantS or less. He also advises that the |
tax on the circulation of national banks /
be reduced 10 one-half Of one per cent:
that such banks shall be permitted u /
issue notes equal in amount 10 the par /
value of the bonds which they have de- |
posted 10 secure their circulation, and |
that the government shall guarantee |
the payment of all bank notes. whether |
issued against deposited bonds or
against other assets
1t viii be seen that Mr.. Cages
schemes look to the enlargement OF the
powers and the multiplication of ma
uonal banks, which will thus meet any /
demand for larger volume of money.
or currency. based on The securities
named. He proposes that these nation
al banks shall be permitted TO deposit
with the United States treasury green
backs, treasury notes and silver cerdf-
Gates and receive in return bank notes.
which securities thus deposited the
treasury is 10 buy up or convert into ma
tional bonds when they can be obtained
and so held as guarantee OF the circu-
latiOn Of the national bank notes. In
other words, Mr.. Gage. by his scheme or
plan, seeks first 10 establish absolute !
for all kinds OF paper money
o. demand obligations Of the govern