The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-06
LYMAN CAGES FINANCIAL
VIEWS.

The financial views of Mr.. Lyman
J. Gage, who is to be President-elect
McKinley's secretary of the treasury,
are being very much discussed these
days. There is abundant evidence of
what his views are.
In April, 1894, a number of the lead
ing business men of Chicago. one Of
whom was Mr.. Gage, signed the fol-
lowing declaration:
a committee has been formed in
Chicago for the promotion of inter
national bimetallism. The following is
their declaration of principles and pur-
poses, with the names attached:
The committee is formed for the
purpose of promoting the establish
ment of international bimetallism
upon the general plan of the Latin
Union, but with a broader basis. Those
concerned in the movement, while
earnestly opposed to free coinage of
silver or any increased use of silver
by this country, independent of inter-.
national action and agreement, believe
that the repeal of the purchase clause
of the Sherman act affords a fitting
and fortunate opportunity for advanc
ing the cause of international bimetal-
liSm. They believe that the day is not
far distant when the necessities of
commerce will compel the international
uSei of silver, as well as of gold, in
the currencies throughout the world"
1t is impossible to construe that to
mean anything like a declaration in
favor of free silver, though it clearly
favors international action in behalf OF
silver.
December 10, 1894, Mr.. Gage adj
dressed a letter to Hon. w. NJ. Spring
er, chairman of the house banking and
currency committee, Washington,
which letter is found on D. 119, Re
port of the Committee on Banking and
Currency" and is, in part, as follows:
Agreeing with criticisms made by
these officers of the government as to
the present weakness of our situation
and the great desira ability of Separat-
ing the government from the direct re-
sponsibility of currency issues, l am
persuaded that the country is not
ready to accept their recommendations
as to the methods proposed.
In making any change the method
should be so simple that all can COM
prehend it, and it should be seen that
the incidental effects would not be in
any direction disturbing to trade,
commerce or industry. l believe that
the Baltimore plan carries the true
principles of a credit currency, but we
cannot reach it by any one step, and
wears may intervene before it could be
realized. In the meantime the way for
the government to step out of the cur
rency business and place the burden of
redemption upon the banks is plain.
Authorize the issue of $3.50, 0000 900 of
21h per cent bonds payable at such
times as congress may elect (twenty
five years desirable), to be offered to
subscribers at par Accept in pay
ment United States legal tender notes
or treasury notes, the same to be can
celIed.
Amend the national banks act so
that banks can issue circulating notes
up to the face value of bonds deposited
as security for circulation.
Reduce the tax on circulating notes
to one-half of l per cent.
This done, national bank notes
would make good the vacuum caused
by the retirement of government notes;
in fact, there would be some expansion
under it to be followed later by some
through forced redemption |
of bank issues, if it be true, as some |
claim, that the volume of circulating |
medium in the United States is larger
than can be maintained, and that the !
outflow of gold is natures method of |
equalizing things.
If this be so, if contraction through |
the expectation of gold, or by the re-
tirement of a portion of the paper |
be a logical sequence of our |
situation, then in that case the govern |
ment, being safe from demands, the |
banks with circulation outstanding |
would be obliged to bring their issues |
narrower limits; but all this |
would work itself out, and need not be |
dwelt upon at length now.
The problem is this; to take the gov
eminent out of the note-issuing bust |
ness
l. Without contracting the currency
in the process.
?. Without inviting to expansion.
The most recent expression of his
financial views was given to the New