The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-02-03
LYMAN j. CAGES VIEWS.
BELIEVES THE COUNTRY'S NONE
TARY SYSTEM SHOULD BE
CHANGED.
Greenbacks, Silver Certificates and
Treasury Notes Should He Re-
tired and Gold Bank
Notes Issued.

New York, Feb. "a special 10 the
World from Chicago says:
Mr. Lyman j. Gage, the new Secretary
of the Treasury, with greet cnudor and
courtesy makes his position quite clear
ON financial affairs. as follows:
Our whole monetary system IS the re
sliltant of makeshift legislaItion and iIn-
scientific compromises. lit is time that re
form 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 treasury
notes redeemed and cancelled. Some
well-guarded system of bank note circu-
lation broader and more elastic than the
present national bank act provides should
be iIraugurated.
Such bank notes should be redeemable
at central place, and be redeenaible in
gold only.
Silver certificates, which form nearly
one-ifth of the circulating medium of the
United States, are dangerous. BY their
use volume of inferior money has
found am abnormal use They are the
most perplexing feature in the much-in-
yolved problem of our national finances.
There is no reason why the govern
ment should act as a ware house man
for either gold or silver Such func-
ton is outside its proper limit of action.
But we are faced by a condition The
enormous amount of $500, 600, 900 of sill
yer, represented by $685., 100000 in sill
yer certificates, added TO the $3.50, ,000,-
600 purchased by the government under
the Sherman act, constitutes a standing
menace to every business interest.
TO sum up, the defects of our present
currency system are:
Il. Confusing heterogeneity, which
needs simpliication.
80. The greenback controyea'ts the prin-
ciple of paper money, VIZ: That every
note injected into the commercial system
should represent an existing commercial
value.
%. The treasury note lis a standing
evidence of a foolish operation-'the crea-
tion of a debt for the purchase ON a
failing market of a commodity for which
the purchaser has no use; it lies open to
the just charge of being both idiotic and
immoral
II. The national bank note merely con-
forms TO the true principle of paper mon-
IJT Oue pAE ui1ANds0udOiE
for security paralyzes its efficiency and
operate to destroy its elasticity.
''5. The silver certificates encourage
the use of silver to a larger extent than
is consistent with the safe preservation
of that metal on a parity with gold"
Would q national commission help to
promote reforms?
There is reason TO hope that it would
be 4 great service in that direction. Such
a commission If rightly elected would
throw flood Of light upon these involv-
ed questions. The information 1t 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 ap-
prehension of true principles will lead TO
correct action.
"lseaction win be slow, but it is com
ing, and it viii be OF long duration"
An Associated Press representative Mt
Chicago saw Mr.. Gage this morning. He
was very busy having before him about
1000 letters, but he took time to say:
Those are my views subject to such
modification as further thought may seem
to require. | must decline TO go into a
delneation of my views now, as | haven't
time to formulate them, and, | do not
think it would be proper or advance the
interests of the country" !"