Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-12-13
SECRETARY CAGES PLAN.


Secretary Cages plan for reforming
the currency, placing the circulating me-
dunn of the country on safe sound basis
aud relieving the treasury Of the burdens
imposed upon it during periods of fnan-
cial depression and commercial stagna-
ton, is as follows:
The absolute separation of the currency
operations of the treasury from its ordi-
nary operations in order to secure
the unquestlonabe soundness of the cur
rency.
The partial substitution of bank notes
for legal tenders and silver certificates.
The issue of limited amount of bank
notes secured on assets.
The separation of the currency opera
tions of the treaaury from its ordinary
operations he would effect by creating an
issue and redemption division. To this
he would give C) $125,ooo,0oO in gold;
(2) all the silver bullion and all the coined
silver held for silver certificates, and (3)
legal tenders up to $2O0,OO0O0O to be OBJ
tanned either from REDEEM tion or from
banks in exchange for bank-note curren-
cy. Once established, this division
should issue no legal tenders except for
gold.
To enable the banks to take out bank
notes in place of government notes be
would refund the loans maturing in 1904,
1907 and 1925 in 21la per entgold bond,
payable at the pleasure of the govern
ment after ten years. He would give any
bank the right to deposit legal tenders or
silver certificates up to so per cent of it's
capital and receive bank notes in ex-
change, the government notes 80 de-
posted being then turned over to the 49,
sue and redemption division, and the
banks taking at market price refundiDg
bonds the par value of which would equal
the bank notes issued to them. The un-
secured notes of the banks are to be linn
tied to rs per cent of their capital and
ject to tax of 2 per cent per annum.
The government assumes the payment of
all bank notes, being secured by the
bonds deposited, by a 10 per cent re-
demption fund, and by the proceeds of
the 2 per cent tax on uncovered bank
notes.
Mr.. Gage proposes no increase of the
debt, but on the contrary, he would OBJ
tain reduction of interest, dminution
Of the charge to be met by taxation. Nor
does he propose any contraction of the
currency. Every dollar of government
issues set apart with the issue and re-
demption division to be held until re-
issued for gold or may be replaced by a
bank note which will be of even more
stable value. And in addition he would
provide for an increase of the currency
whenever and wherever it is needed, and
an increase lasting only 30 long as it is
needed. This he does in recognition of
the perfectly we'll known requirements of
those sections of the country in which
the present banking facilities are made
quate.
But Mr.. Gage will probably be disap-
pointed in his hopes of carrying his
plan through congress. The greater
mum Der of the members of that body are
firmly impressed with the idea that the
present financial system is good enough.
1t has answered every purpose for many
years past, will serve equally as we'll for
years to come, and all bills introduced in
either the house or senate, will be prompt
ly pigeon.holed by the committees to
which they are referred.