The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-01-19
Estorhazy eases.

bAtornhHy cufcs.
gold Of all circulating notes of said Ma
tunal banking associations.
Herein IL poser. the faith OF the United
states is not good enough for the notek or
obligations Issued by government. Our plu
tocrats are afraid the United States would
be unable to. or refuse to, redeem It's
notes, but our secretary, also a multi mill
lionaire, after decaniing upou government
rotes, wants government io pledge it's
faith for the redemption OF bank notes,
mostly issued by bold speculntors, and In
stead OF going out OF the banking business
he wants government TO take up the hank
ing buslnt IS where tho bank + fails to do
or perform what he promised % do or per-
FORM that Is. TO redeem his Dutes. He ir-
tends that the banker shall enjoy all tina
Profits OF his dealings and that government
shall bear all the possible Losses.
In section 3 Mr.. Gage protests against
the issue of notes OF less denomination
than $40 This Is evidently a measure 10
force checks or other unsecured rotes INTO
circnlatioi among the labofing and small
farmer classes to prevent us much nj
POSSIBLE the getting OF anything what Is
considered as money into their hands, aud
III one OF the many speculative features OF
scientific tinancier!nR. IL IL not making
money out Of money by interest but II Is
making money out OF credit through GER
lain financial standing.
Section II reduces the heretofore low
rate of 81 per 800 notes isaued per an
mum OF y per cent, and under certain cir
cumstancCs such notes issued shall be free
rom any taxation. According TO the Re-
vised Statutes no banking asso iation shall
form without less capital than 100000.
Tho secretary wants congress 10 leave NJ
10 hit option 10 admit OF banka with mt
less than $4,000 capital and banks with
not less than $4,000 capital
This would give tho secretary large
field for Jobhing, vet from preceding state
ments as TO nnsonnl circulation Il may be
Implied The $4,000 capitalist might do as
much business as tho 100000 capitalist,
either within or outside Of tho 1000 pnpu-
tation and leaves as much, or even mofe,
unsonnd currency outstanding unredeemcd
awaiting redemption by tho United states
as the 800, 600 capitalist This might I've
very profitable TO the bankers but would
be q very costly affair for the government.
II would hring back the banking sysiem
TO us. against which President Jackson
fought SO va!iantly and fiually saved tho
nation from the octopus which had thrown
ms thousand arms around the country's re-
sources In nm effort 10 stranglc the re-,
sources and the nation, by the eternal!
President Jackson, II he could hear those
new tangled ideas about scientific fnan-
come back from his grave and smash the
bottom out of those Institutions organized
TO pntperige labor. TO wrest the profits
frcm the agrlcultrrlst. and to weigh down
Industry by heavy interest charges,
IN answer 10 Inquiries too secretary
says the purpose OF the bond section MAS
10 refund outstanding bonds sor bonds or
low interest payable In gold. In other
words the secretary Wants congress 10
change coin bonds into gold bonds, he
wants congress TO give oliver the death
blow OF course bpudholderB would he
very willing under the present regime.
when the gold dollar IL rated at double
the value OF the silver dollar 10 make sure
that the bond would be paid Ia this dear
money, Two per cent interest in goll coin
would be OF ms much ralue TO them as
per cent in silver coin. Aside from this IL
would be OF Immense value to the pluto
Gratis to have a majority OF congress de-
clare for gold as our only standard money,
and thereby make or declare silver coin
rodeomabe In gold II would be gaining
what Cleveland the first. Harrison and
Cleveland the second have been fighting
for and what Hanna aud Mckinley are
fighting fer now--ihe elevation OF piu-
tocracy and OF the gold power aud the low
ering 81 reduction OF tho mobocraoy or the
common people,
Upon point raised by Mr.. Prince, Mr..
Ntltt Ett1lOlNcus slIiS sNdtioHAt btuh iiJttS
would not constitute an ordinary demand
obligation against the government. as they
would BE- redeemed only in ease or gem
aral collapse OF the banks ana thp disap-
psaranee OF their securities" Mr. Gage
docs NOT apprehend this; yet that the oc-
cnrrenoe Is not only possible, but rroba-
BILE. and that such nm occurrences Is really
not expected, Is proved by the fact that Mr.,
Gage In his currency plan provides for II,
by trying to force government to redeem
ssich bank obligations. Government re-
demption OF bank notice would be actually
a bait held out for banks to collapse.
In the last Of Mr. Cages statement he
informs his audience that his bill would
AZ later date be supplemented by anpther
ineasure. In this, according to recon-
incubation OF the president, the secretary
wants congress 70 aAtAers=c him TO bur-
row, when circumstances demand 81, $780,
900 for q term not exceeding one year
He assures his audience thai this power
would not be exercised except at rare In
tervals. He said u would have steady
Ink effect from tho confidence It would
give tho market that the power existed.
Probably Mr. Mckinley is afraid OF .
similar otitcry OF the people they mato
eGainst the issuing OF Ssea. 100000 OF bonds
Nv biz predecessor. tho authority or the
IftulnR OF which was considered doubtful.
belne lsr-fetched. and the refusal 81 con-.
greel q making thcm gold bonds or
teNgre M, QaEc could not borrow 500 .0ON.-
- leAt bond isuue, ana this bond issue.