The Weiser signal. [volume] (Weiser, Idaho) 1890-1904, 1897-02-04
Mr.. GAGE ON FINANCE
VIEWS OF THE NEXT SECRETARY
OF THE TREAsURY.
Regards silver Certificates ~ = Most
Dangerous F-rm of CircuIa4fne
Medium, and = Menace.

New York, Jan. sl.-A special to the
World from Chicago says:
The World submitted 1t writing to Mr..
Lyman j. Gage a number OF questions
concerning the most vital issues with
which he win 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 sil-
yer purchased under the Sherman act
should be gradually sold and tho treasury
notes redeemed and cancelled. Some well
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 redeemabls
In gold only. Silver certificates which
form nearly one-nfth 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 perpl-xing features In the
much involved problem OF our national
finances. There Is no reason why tho
government should act as warehouse
man for either gold or silver. Such .
function Is outside Its proper limit of
action.
But we are faced by n condition. The
enormous amount of $500 900, 900 OF silver
represented by $34S 900, 900 In silver certi-
ficates, added to the $3.50 900. 900 purchased
by the government under the Sherman
act constitutes a standing menace to ov-
cry business interest. To sum up the de-
fects Of our present currency: First, con-
fusing heterogeneity. which needs simpli-
f1cation; second. the greenback contro-
verts the principle of paper money, viz.
that every note injected into the commer-
| cial system should represent an existing
| commercial value; third. the treasury
| note s a standing evidence Of foolish
operauon-the creation OF debt for tho
purchase on q falling market Of COM
modify for which the purchaser has no
use; 1t lies open to the Just charge OF
being both idiotic and unnatural. Tho
national bank note merely conforms to
the principle of paper money. but the un-
| reasonable requirements for security par
alyze Its efficiency and operates to de-
stroy Its elasticity; fifth, the silver oer-
tificate encourages the use Of silver to q
larger extent than is consistent with the
safe preservation Of that metal on par
| ity with gold. Would national COM
mission help to promote reform? There
is reason to hope that It would be Of
great use in that direction. Such a COM
mission II rightly elected, would throw
a flood Of light upon these involved ques-
tions. The information 1t might gather
would be OF immense value to our peopIs
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 ia
correct action.
Reaction will be SLOW, but It Is COM
ing. and 1t will be OF long duration"