The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-04-02
WHAT GAGE SAID.
PROGRESSED IN 1891 THE PREDlcA-
MENT OF OUR TREASURY DE-
PAaTMENT IN 1893.


System.
The new secretary of the treasury,
Lyman j. Gage, is not "a novice either
IN the theory or practice of financial
affairs. Long before most bankers and
business men were greatly concerned
about our national finances he saw dan
ger ahead and prophesied what would
and what did--happen, unless certain
changes were made in our unscientific
and unsound financial system.
On Feb. 10, 1891, Mr.. Gage read
paper before the Sunset club in Chicago
After explaining how silver and gold
money had been evolved "by the free play
of human choice, ending in consensus Of
action, and never by conventional agree
ments made in advance" he discussed
our own monetary conditions He point
ed out how the United States, by &C
cepting both metals and by allowing its
creditors TO choose either kept together
the two metals, whose values were di-
verging rapidly To the question, Can
not the government continue this policy
Indefinitely and thus forever preserve a
higher value to the silver coin than its
equivalent in silver hullion?' he replied
that it could not. THE proportion Of
silver payments to the government, he
said will steadily increase until the
treasury department will he obliged to
either pay in silver or buy gold in ex-
change for it, With free coinage Of sill
yer, " he added "this result Will be the
sooner reached. Nothing could be
clearer or soundcr than this. 1t is pre-
cisoly what happened,
In the autumn Of 1894 he took part in
an elaborate discussion of the money
question at the Commercial club Of Chi
cac0 His address at this meeting is
often referred TO and is now of much in
| terest, since it contains what he says
are still substantially his ideas in regard
! to currency reform We quote below the
greater part of this address:
I'm speaking upon the subject of our
money system one must be aware that III
whatever he may say he will excite the
hostile criticism and draw forth bitter
| invective from some one or more OF the
various factions who are seeking to es-
tablish on new and experimental foun-
dations our much disturbed financial
structure.
Through oar heterogeneous system
the public mind has seemingly lost the
power to discriminate between real
things and the shadows or signs OF
things. 1t is necessary that DISCUSSES be
pulled aside and that real facts appear.
"There is, in truth, only one real
money-viz, metallic coin. 1t may be
composed Of gold or silver 1t might be
of something else, but it is not. Green
backs. treasury notes and national bank
notes are but promises to pay. In the
nature Of things they can be nothing
more. They pass as money, perform the
functions of money, often more conven-
iently than money itself Because of this
confusion comes, and we are led astray.
Seeing that the greenback is uttered 10y
the government; that it has, by the legal
tender quality impaired to 1t, the power
TO nav debts, and that it circulates with
all the power of money, discrimination
ceases-we call it money-and the idea
that government can create money 10y
its sanction or fiat becomes rooted IL
the mind. The distinctions just pointed
out are. however, fundamental distinc
tions. They should be taught III the
schools. They are simple, easy to be un
derstood even by a child.
1--WE admit that on many occasions
paper money, whether greenbacks, treas
urv notes or national bank notes, II
more to be desired than gold. Yet more
TO be desired than either, as proved by
the daily conduct of men, is credl
balance in solvent bank For, to secure
this better form of good, people volun
tarily give to the banker these promises
TO pay-yea, even gold itself-for
credit to an equal sum upon his books
With an entry upon their passpooK al
evidence of the transaction they CLAIM
TO have money in the bank. " In popu
, lar language, the claim is well enough
but, correctly speaking, it is positivei.
untrue. They have parted with thei
money. if money they had. 1t belong
70 the banker; it is no longer theirs.
"Tbe consideration they have received
} is an agreement from the banker u
meet their acquisitions upon him iron
time to time If the banker is falthfu
! to his obligations they have made n
, bad bargain, for all these things-green
: hacks. treasury notes, national BAN
notes and, to use the popular language
money in bank-are in their nature AM
essence one-viz, they are forms O
credit. Their value, each and al alike
lies in the ability of the owner to con
vert them at last into the only real forr
of money now existent-metailic com
And to push the question little fai
Their. the only value of the metallic col
lies. not in the coin as a com, but i
the power of the metal the coin contain
} to exchange for other things. =,
ut should here be noted that whli
our silver dollar is real money Its powe
70 exchange for other things Is MOI
than doubled by another and artlilcia
value impaired to it through the law
, ,rbicb gives il mower equal TO the dolla