Cottonwood report. [volume] (Cottonwood, Idaho) 1893-1901, 1897-02-05
Mr.. GAGE ON FINANCE
VIEWS OF THE NEXT SECRETARY
OF THE TREASURY.
Regards Silver Certificates as a Most
Dangerous Form of Circulating
Medium, and a Menace.

New York, Jan. 3.-A special to the
World from Chicago says:
The World submitted 1t writing to Mr.
Lyman ]. Gage a number of questions
concerning the most vital issues with
which he will deal as secretary of the
treasury. Mr.. Gage, with great candor
and courtesy, makes his position quite
clear on all Of them, as follows:
Our whole monetary system is the re-
suit OF makeshift legislation, unscientific
compromises. 1t Is time that reform be-
gan. In my own opinion the greenbacks
should be permanently retired. The sill
yer purchased under the Sherman act
should be gradually sold and the treasury
notes redeemed and cancelled. Some we'll
guarded system Of bank note circulation
broader and more elastic than the pres
ent national bank act provides should
be inaugurated.
Such bank notes should be redeema-
BILE at central place, and be redeemable
In gold only. Silver certificates, which
form nearly one-fifth of the circulating
medium of the United States, are dam
gerous. By their use a volume of inferior
money has found an abnormal USE They
are the most perplexing features in the
much involved problem of our national
finances. There Is no reason why the
government should act as a warehouse
man for either gold or silver. Such a
function is outside Its proper limit of
action.
But we are faced by q condition. The
enormous amount of s500, 0O0 900 of silver
represented by $S4S, 100000 in silver certi-
ficates. added to the $50, 0OO,O 900 purchased
by the government under the Sherman
act, constitutes standing menace to ev-
cry business interest. To sum up the de-
fects OF our present currency: First, con-
fusing heterogeneity, which needs simpli-
hcatfon; second, the greenback contro-
verts the principle of paper money, viz.
that every note injected into the CONNER
cial system should represent an existing
commercial value; third, the treasury
note is a standing evidence of a foolish
operation-the creation of a debt for the
purchase on a falling market of a COM
modify for which the purchaser has no
use; 1t lies open 70 the Just charge of
being both idiotic and unnatural. The
national bank note merely conforms to
the principle Of paper money, but the I'M
reasonable requirements for security par
alyze its efficiency and operates to de-
stroy its elasticity; fifth, the silver GER
tifcate encourages the use of silver to a
larger extent than is consistent with the
safe preservation of that metal on a par
ity with gold. Would national COM
mission help to promote reform? There
Is reason to hope that 1t would be of
great use in that direction. Such COM
mission, If rightly elected, would throw
flood of light upon these involved oues-
tions. The information 1t might gather
would be Of immense value to our people
and would guide US to wise legislation.
Emotion and sentiment are not safe
guides In matters of finance. A clear ap-
prehension of true principles will lead to
correct action.
Reaction will be slow, but 1t is COM
ing, and 1t will be of long duration"