The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-01
McKinleY's Secretary of Treas
ury Lyman J. Gege
HastenS to Set Himself Right
With Wall Street.
NOTHING BUT GOLD
And Bank Notes Has Any Place
In Our Currency.
He Is Against Greenbacks and
Silver In Any Form.

New York, Feb. IA special to the
World from Chicago says: Mr.. Lyman
]. Gage, the new secretary of the treas
ury with great candor and courtesy
makes his position quite clear on finan-
cial affairs as follows: "Our whole
monetary system is the resultant of
makeshift legislation and unscientific
compromise. 1t is time that reform be-
gan.
In my own opinion the greenbacls
should be permanently retired. The sill
yer purchased under the Sherman act
should be gradually sold and the treas
ury notes redeemed and cancelled. Some
well guarded system of bank note cir
oulation, broader and more elastic than
the present national bank act provides,
should be inaugurated.
Such bank notes should be redeem
able at a central place and be redeem
able in gold only.
'SilVer certifica ties which form nearly
One-ffth of the circulating medium of
the United States are dangerous. By
their use a volume of inferior money
has found an abnormal use They are
the most perplexing feature in the much
involved problem of our national finan-
ces.
There is no reason why the govern
ment should act as a warehouse man
for either gold or silver. Such a func-
ton is outside its proper limit of &C
ton.
But we are faced by a condition. The
enormous amount of $500, 000 900 of sill
yer, represented by 1888 million in sill
YER certificate added to the $3.50 900, 900
purchased by the government under the
Sherman act constitutes a standing
menace to every business interest
ITO sum UP the facts of our present
currency system are:
'tFirSt-COnfuSing heterOgenity which
needs simplfication.
'Second-The greenbacks cOntroverts
the principle of paper money, viz: That
every note injected into the commercial
ShOn1G RYiSfir0
commercial value.
''Third-The treasury note is a stand
ing evidence of a foolish opera tion-the
creation of debt for the purchase on
falling market of a commodity for
which the purchaser has no use; it lies
open to the just charge of being both
idiOtic and immoral.
''Fourth-The national bank note
merely conforms to the true principle
of paper money, but the unreasonable
requirements for security paralyze it's
efficiency and operate to destroy its
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 parity with
gold"
Would a national commission help to
promote reform? ''
There is reason to hope that it would
be of great service in that direction.
Such a commission if rightly selected
would throw flood of light upon these
4ilNO4F6Q queSlIOflS- ne
might gather would be of immense val
lie to all our people and would guide US
to wise legislation.
Emotion and sentiment are not safe
guides in matters of science. A clear
apprehension of true principles will
lead to correct action.
Reaction will be slow but it is COM
ing and it will be of long duration"
An Associated Press representative
saw Mr.. Gage this morning. He was
very busy having before him about 1 900
letters, but he took time to say:"Those
are my views, subject to such modifica-
| ton as further thought may seem to
| require L must decline to go into a
| dehneation of my views now as I have
| not time to formulate them; and 1 do
| not think it would be proper. or advance
| the interests of the country"