The herald., 1898-02-13

supreme court, who spoke eloquent
on THE Nations Anchor" the court {
which he is a member.
He was followed by Lyman J. Gage
secretary of the treasury.
GAGE ON FINANCE
The subject of the Hon. Lyman j
Gage, secretary Of the treasury, wa
Government Finances"
After giving a brief financial histor
of the nation during the administrator
of President Lincoln and up to the tim
of resumption of specie payments Il
1879, the speaker said:
"The expectation existed that redemp
tion meant retirement, at least grad
ual retirement, of the demand obliga
tions Statesmen, with scarcely an eX
ception, while supporting this issue
deprecated the seeming necessity an'
pleaded for narrowest and briefest us
of the dangerous agency.
s'Why were these notes not retired
Bywhat strange witchery of the imagin
alton has it come about that they ar
widely regarded not as evidences of un
paid debt, but as money itself?
ner foreboded when, speaking of sucl
forms of government issues, he said
THE medicine of the constitution mus
not become its daily bread We have
seen that at the beginning Of the war
with a banking system heterogeneous
unrelated by any common laws or rules
of action, yet with these disabilities the
associated banks had advanced $3.50,
600 900 in gold to the government with
out endangering specie payments. In
deed, the record shows that so rapid
were the governments disbursements,
and so strong the circulating current,
that with the payment of $150,000, 600
completed, the gold reserve of the banks
had been depleted only S7,000,0O0
Eve have seen that the interjection of
government notes into the field of circu-
1ation-excusable as it may have been
crowded bank note issues back for re-
demptfon, filled the bank vaults with
government notes in place of specie and
led to the suspension of specie payments
by both the banks and the government.
Viewed from the present point of time
there is a consensus of the best opinion
that had there then existed a banking
operative in all the states, the derang
ing influence Of government notes would
not have appeared; that specie pay
ments would have been maintained;
that prices of commodities would have
remained not far from a normal stand
ard; that the sudden fortunes won from
legitimate industry by speculative craft
and cunning would not have appeared in
dazzling mockery of a nations distress;
that hundreds Of millions lost through
depreciation of government notes would
have been saved to the people.
eff this be true, or apparently true,
the inquiry may be repeated, why, out
Of the inf1owing surplus were not these
notes, as the most dangerous part of the
war debt, returned and cancelled? Was
It considered, is it now considered, that
our war banners have been forever
furled? Resting, as we may, in a sense
Of security as to peace at home have all
the nations given us satisfactory
pledges against unjust aggression from
Why do we build warships and
spend millions in coast defenses and
maintain an army? Experience, bitter
costly, humiliating experience, has
taught us that behind the army and the
navy must be a strongly intrenched
treasury and an unquestioned credit. A
floating debt, payable on demand, is an
element of weakness. 1t is the very op-
poste of strength.
I'm pointing out the dangers of gov
paper money, Secretary Chase
the ever-present liability
to be called on for redemption beyond
the means of payment, however care |
fully provided and managed; the haz-
ard of panics precipitating demands for |
coin, concentrated on few points and |
/ single fund
'It requires but little reflection to con- |
1ince the mind that this danger, TO |
which for many years we have been ex-
posed, would be realized to its fullest
,Xtent in the initial movement of great |
var. In such a movement the folly of |
'ur present situation would be fully re-
yealed. The immunities of peace cannot |
,e accepted as safe conditions against |
he contingencies of war. 1t is this |
which justifies navies and coast de- |
enses. 1t is this which not only justifies |
,ut demands that in its finances the |
government shall pursue that policy |
which shall be safe, not only in time |
f peace, yet one so guarded and pro-
ected that no surprise can throw it into |
policy which will always |
'e able to reinforce the army and the |
lavy with the supporting power of an |
credit"
OTHER SPEAKERS
Great applause greeted Bishop Pot
er of New York when he arose to de-
yer an address on The Humor of Lin
oln."
The reverend gentleman told many
necdotes of Lincoln in a most happy
lanner and contributed greatly to the
njoyment of the evening.
The other addresses of the evening
Iere by President Garfield of the Uni
ersity of Ohio, who responded to Ed
cation and the Nation" and w. ].
alhoun of Danville, ILL.,, who replied
, illinois"
AT NEW YORK
anreta ru Roosaua1t Soe,c q 11oua por+,, |