The times., 1897-11-04

| per representative of bOtn as of equal
| ulgnltF and value in all its operations. In
! the collection of its revenues, whether in
the form of excise taxes or OF customs
| dues, 1t has made Determinations against
neither while upon the other hand ii has
| held itself ready 10 pay TO the public
creditor whichever OF the two he might
choose To receive ar the more desirable
10 hlnl. Even further than TINS, it has de-
| clareu Itself ready Whenever necessary
! 10 the maintenance of this parity TO eX-
| change on even terms at the pleasure OF
| the holder either fOrm of the metallic
money for the other. These practical op-
eratlOns and declarations were necessary,
and they have operated to keep in concur
rent circulation on terms or equality the
two Kinds of metallic money, notwith-
standing the varying but never ceasing
| disparity between the natural or CONNER
1 cial value of The one as compared with
/ the other.
Nevertheless. il must he reoogniz ed
| that this unaert akiHg lnvplVes a large
financial responsibility, ana requires prop
er and adequate legislative provisions for
It's continued exercise.
For CUoi effrlntery the above statement
is something great and Gage-like. The
law declares it to be the policy Of the
| Government to maintain the equai power
of every dollar at all times, in the markets
aud in the payment of debt" But the
Secretary, like his prede cessor, while
forced TO accept them all, acts upon the
presumption that only gold is good enough
with which 10 pay Government debts, and
thereby places the nation at the feet OF
the Wall street gold ring. But all this
is threshing old straw. The Conspiracy
a gainst the money uf the Constitution and
Of the people would be without "A salts
factory foundation in the absence of this
old sophiaical argument, advanced by the
Secretary.
What Mr.. Gage recommends as The most
efficacious way TO XIII bimetallisIn, and
to get tie country once for all and hope
lessly on a single gold standard basis,
requires only t. be stated, TO be recognized
as a plan the fulfnIment of which would
swell the hearts Of Wall and Lombard
street gold jobbers with Joy and eladness,
but which, at the same time, would
amount TO a very dangerous thing for any
Senator or Representative to be caught
supporting. We VIII not waste space at
present on tie minutiae, while the lead
ing features are well worth noting.
The first one is the establishment OF
division Of issue and redemption. Among
other things, S200, ,0eo, 600 OF .sreeuhacks
are to be collected and deposited in this
division and reissued only in exchange
for gold. Thai disposes OF $500, ,000,0 600
of the peoples money at one chop. Next
AIT. cage w0uld refund the outstanding
bonded debt maturing in 1904 and 1907
by issuing 1-2 per cent bonds, principal
ard Interest payable in gold.
The advantage involved in this proposed
action lies In this: First, IL removes an
ambiguity from our contract obligations
an ambiguity which affects unravora bly,
the Government credit. The word COIN
now used 10 express the obligation in
the public debt Is an ambiguous word.
1t is no doubt understood by the more
discriminating public creditor to mean gold
cOlns ana the solemn act oi Congress
pIeugIug the WaintelaiISe o. Sile, ,,.,l
upon parity with gold coin makes It
impossible To construe the word COIN
as therein used 10 mean anything other
than gold or its fun equivalent. Yet, as
this is conclusion of logic rather tean
clear statement Of fact, the simpler
ana more humble investors, or WOuld-De
investors in the public debt, are confused
and doubtful, and the public credit is the
weaker therefor.
1t VIII be observed in the above that tn
Seer etarv's logic is not nearly clear -
his purpose. The next thing OF interest
IS his scheme for a reform II the national
banking law. % He would permit banks
with a eapnal Of S25. 000 in places having
a population Of 1000 or less. % He
would reduce the tax on circulation secured
hy bonds TO one-halr OF one per cent 4
year 60 AE9w banks TO issue notes to
.
he w 1uld perpetrate another small joke
Jn the sreeatzacks, silver certificates au.t
Treasur~ notes by allowing banks to de
posit $500 oe0 600 OF them and take out
national bank notes in exchange without
TAX on such ejaculation; the peoples money
so deposited to be retired at the Secretary
convenience and bonds substituted. q.
After hanks nave deposited 80 per cent OF
their capital ia bonds, greeubaci,s, silver
certificates or treasury NOTES, they are to
be allow ed to issue % per cent OF capital
against general assets. (5) The Government
is t0 guarantee the unsecured equally with
the secured circulation. &c, Z, g Provide
for aredemn:ion fund. for redemption in tho
city Of New York and other places, anu
restrict the issue of national hank notes
TO demonstrations OF ten dollars ana upward
/ am confident that under an act How
ing greater 1beiality OF issue and less
burdenSOIne rates OF taxation. these banks |
would avail themselves OF the opportunity
and lind IL To their interest to issue in
stead of but SIS, $50, 900, the amount |
which they have at present outstanding,
a sum equal to the fun amount of their |
capital, and in addition in the season of I
crop activities an additional unsecured |
volume OF circulation OF 20 per cent.
If the highest good OF the American |
nation is 10 he found in putting it com
pIeteiy and finally in pawn to th., gold |
and bond syndieates and thena tional banks, |
ana placing it il their pow er to expand OF |
contract the currency at viii, and 10 bring |
on panics AZ pleasure, ,WheIevet a good time /
appears fer 4 general foreclosure of pros
perity. then tie general scheme OF Mr.. |
Secretary Gage is to be admired Is |
promising all those results. Otherwise, we /
are unable TO approve OF it further than t.
express the opinion that the member of |
Congress who should vote for any measure /
ernlodying these recommendations OF Mr..
AcKhloy'- minister of finance would be
certain tc dig his political grave.