Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1898-12-10
MIR. CAGES SCHEME.
Secretary of the Treasury Advo-
Gates Bank Note Currency.
Heattacks Government Notes, Characterix-
ing Them as Disturbing and DerangiuE
Factora-Facts aud Figures About
Government Finances.


the secretarv NJ tho treasurv IN the
.,.., 49,. -. =. ...,-..s.,.,,
sPe"" VI VIC o"So VI
was maze puolic yesterday In the
report Secretary Gage says: The rev.
anues NJ the Government from all
.,.... o.. al. al go. .,a.a IT,.
'o' .". n ~, o-.e
oO, iosc, were e4vs, ooo,soo To- Ihe OK
penditures for the same period were
sbao 8si. 2Ol. "a
T., a;souss,,n ,h. o,a.t,or ~ In
~
creasihg tne american merchanI ma-
rine the secretary says:
War with Spain and tho annexation of the
Hawaiian archipelago which have changed
the poltical ana commercial relations OF tho
United States not only with Cuba, Porto Rico.
Hawaii and the Philippines. but also with the
.on.h ,, ooween wnon anu so'.n m 40
.os,s,,, aan,,,nn y, ~ = c,rma,I,a r,ar,,,,,s
p,,a,,a, ~, ,hn IrnI,ad S,,,os
tne suoJect VI honey III forso hico
Is discussed at length. The secretary
saws.
The existing currency Of TINT island consists
NJ silver coins known as pesos md centayos
| The coins ho,r no axed relation IN yo,d M,
heIng ans whore r. deemnble In tho yellow coin
| n Is unnecessary here IN mint out Mt nnv
length tho general evil results upop industry
and commerce az n currency medium M ont Of
hnrmonv win Tho wor.d's money ne 10 induce
a widely auctuating rato of exchange II is
hi,bIv imnortant that American canitL should
Ana no obstacles IN its transfer 10 and from
PORTO Rico
ia therefore. suggested TINT. nj the proper
time nction he taken nv congress- TO asslmilate
| the currencv NJ PORTO Rico IN thu, Of the
| ITni,cd states so far and so rnnidy as this cau
' no done without unduly disturbing existing
conditions ond CONTRACT relations in Porto
Rico. This IL Is believed. can be accomplished
| nv making customs dues I'm the island PAYABLE
IN American money. vet receiving the silver
| nasos and ecntavos nj n fixed relation 10 our
dollar
Ths sub;sct NJ currencv and banL-
..I .,o..L III. ..o,..,,
ing 10 ueae" ~ We A"s ses'e'J
| says:
In submitting my report feel II my duty TO
impress upon congress Us best may. the i'm
portant subject OF currency and banking re-
form. With financial system condemned by
the judgment OF the most experienced and wise.
both ut home and abroad. Its evils illustrated
in daily business and emphasized In recurring
panics, we fail. with an obtuse timidity. to face
the questions which must be met and rightly
solved before industry and commerce can be
established upon enduring conditions OF secu-
| rity.
| The arguments against government issues OF
paper money Us n medium for commercial ex-
changes have been fully made and need not be
repeated in detail Its rigidity. Its failure to
meet demands where demand Is most urgent,
/ the dependency OF the whole industrial struc-
/ turc upon the state OF the revenue and public
expenditure-these are important links In that
chain OF argument The menace TO our domcs-
| tic affairs, several times recurring from
threatened change In the standard under which
they are carried on. and our foreign trade set
tied. has been companion evil-perhaps the
greater OF the two
The proposal to substitute bank issues for
government notes is opposed with many honest
/ prcjudices and nssalled by bitter denunciations
The first arise from failure TO comprehend
the true philosophy OF paper currency and
must be patiently considered The latter OBJ
scure the question by reckless statements.
charging TINT oil propositions for currency re-
| form ore bank conspiracies TO exploit the peo-
Pile
! shall not be outside OF my duty II venture
to point out In at least one important respect.
the advantages TO the poorer districts OF the
| country OF properly constituted bank curren-
| cy. II NAV be done by fairiy describing the
course Of the financial movement Us IL now
goes on. and by presenting In contrast the
movement as II would 70 on under the condl-
| lions advocated. II Is familiar fact that,
In the period OF harvesting and crop moving.
the currency is strongly drawn from the
centers 10 the country districts When this
movement Is over, the currency again tends to-
ward the cen,ers The currency flows to the
center TO pay loans occasloned by its use and
other general Indebtedness. and also to secure
the benett Of the country banker for q portion
OF his funds which In dull period would other
wise lie unemployed In his hands At present,
the currencv 80 sent consists almost entirely
m lecnl.tender notes and treasury notes-that
IL 10 saw IN the money which the law recog-
nizes ne lawful reserve. THUS received by the
horlars In the monev centers IL becomes A
S'-''' " "