The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-02-04
THE NEXT SECRETARY OF THE
TREASURY TALKS FREELY
ON VITAL ISSUES.
OUR MONETARY system OUT OF GEAR
Result of Makeshift Legislation-Grcen-
backs Should Be Permanently Re
tired-Silver Certificates are
Dangerous and Notes Worse.

New York, Feb. IA special to the
World from Chicago says:
The World submitted in writing to Mr.
Lyman j. Gage number of questions
concerning the most vital issues with
which he will deal as secretary of the
treasury. Mr.. Gage, with great candol
and courtesy makes his position quite
clear on all of them as follows:
sour whole monetary system is the re-
suit of makeshifi legislation and scientific
Incompetence 1t is time that reform
begins.
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 Sher.
man 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 inaugurated.
such bank notes should be redeema
BILE at a central place and redeemablc il
gold only
Silver certificates, which form nearly
one-tifth of the circulating medium OF
the United States, are dangerous BY
their use volume of inferior money has
found an abnormal use They are 4
most perplexing feature in the most veX.
ed problem CT our national finances.
There is no possible reason why the
government should act as warehouseman
for either gold or silver, such transac.
tons being outside its proper limit of ac.
ton.
But we are faced by condition
winch the enormous amount of $500, 600,
UUO OF silver, represented by S33S, 900,
OO0 in silver certificates, added to $50.
100000 purchased by the government un,
der the Sherman act, constitutes a men.
ace to every business interest. TO sum
up the situation the evils of our fnan.
cial system are:
"tirst-Confusing hetcIogcneity which
needs simplifying.
Second-The government controvcrts
the principle of paper money, viz: That
every note injected into the commercial
system should represent an existing com.
mercial value.
"Ihird-The treasury note is IL standing
evidence of foolish operation, the crea-
ton OF Il debt for the purchase OH fall
ing market of Il commodity for. which the
purchaser has no use. 1t lies open to
the just charge of being both diotc and
immoral.
"FOurth-Thc national bank note nearly
conforms to the true principle of paper
money, but the unreasonable require
ments for security paralyze its efficiency
and operate to destroy it's elasticity.
"Fifth-The silver certificates encour-
age the use of silver to a larger extent
than is consistent with the safe preser-
walton of that metal on II parity with
gold"
would an international conference help
to bring about reform?'
"There is reason to believe that il
would help to bring about such a result
An international conference would throw
light on the financial condition, the ad-
vantage of it would be to open the eyes
of the people and guide lis to wise legis-
lation.
Popular feelings are not safe guides
in matters of science. A clear appre-
hension of true principles will lead to cor
rect action.
Reaction will be slow, but it is coming
and it will be of long Duration