The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-02-06
LEADING EDITORIALS.
From the indianapolis Sentinel.
CAGES
CUR REM tex
VYEWH

VIEWS, n, a., found
rather strong medicine even by those who
nave recognized the necessity OF some
change In case the gold standard is to be
maintained. Many persons see plainly that
the government can not we'll continue 10
redeem the greenbacks, on demand. in gold
so long as there are liable to be heavy de-
mands for gold for export, but Mr.. Gage
would not stop at merely retiring the
ereenbacks He proposes to rctire every
thing. The silver certificates are danger
ous' and should be retired and the silver
purchased under the sherman act should
he sold. The treasury notes also should
| TO- In other words, the country should have
no paper money but bank notes. unless it
may be gold certificates. This would be a
reformation of the currency with a ven
geance. and 1t is hardly possible that 1t
would find general supper. among business
| men, most OF whom understand that even
the retirement of theae greenbac<s alone
would have to be done gradually, and with
| provision for some other currency to &C.
cupy their place II general unsettling Of
business Is to be avoided in the change,
Mr.. Gage also makes some propositions OF
financial theory that are odd one is this:
"Ihat greenback controverts the principle
or paper money, viz; That every note in
iocted into the commercial system should
represent an existing commercial value"
That principle is correct enough as np-
piled to issues Of bank notes by citizens or
by corporations, but II has no application
to credit money issued by the government.
no government recognizes any higher Sc
curity than its own creditor at least, our
government does not--and the paper cur
rency issued by government rests directly
on Its credit. The groenback currency is
safe enough, and always has been, but I'M
der the peculiar stress that has been Great
ed by the establishment OF the single gold
standard 1t Is both inconvenient and dan
gerous to the government to keep these
demand notes in circulation. In other
words, 1t is desirable to avoid any form
of credit money for whose redemption de-
mand may be made on the government at
will After making this peculiar objection
to tho ereenback. Mr. Gage puts himself
into an entirely inconsistent position by his
remarks about National bank notes. lie
says:
'The National bank note nearly conforms
to the true principle OF paper money, but
the unreasonable requirements for security
fhiNlS ~ us tlhtltucy anu operate W Ut
stroy its elasticity"
The security FOR the National bank notes
IS government bonds. or In other words,
the credit of the government and that
credit is no better security for them than 1t
Is for the greenbacks. AS n matter Of fact
the security is perfectly good, and there
Ia nothing unreasonable about IT. Indeed
the security of the notes is the best feature
Of the National banking system. aud the
only one that has made it tolerated. There
Is no good reason for limiting the issue Of
the notes to 90 per cent of the security, for
they would be quite as safe Il issued to the
full amount II this change we're made
aud strictcr precautions for examinations
were provided. together with a system OF
convertible bonds for hank reserves, which
would give elasticity to the currency and
security to depostors. tine National bank
ing system would be the safest known to
the world, though many persons would con-
slider 1t an expensive one
The ideas of Mr.. CAGE as to the use OF
silver for currency represent merely the
strabismic views of the extreme goldbugs
and it is hardly worth while TO discuss
them. He realizes the advantages OF IL
currency commission and favors one as an
educational factor. In this respect he Is
sound