The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-19
SECRETARY GAGE A PRACTICAL
REFORMER

Secretary Gage continues to impress the
country with the soundness of his financial
views and the moderation with which he
expresses them. Although he is an earnest
advocate Of currency reform and has WELL
defined ideas as to how it should be accom-
plished, he is not so welded to his own
views that he is unwilling to accept those
Of others that seek to accomplish the same
| results in a different way. and If he cannot
get all he wants at once he is willing to
take what he can get, provided it looks in
the right direction. In his last statement
before the House committee on banking and
currency he made general statement of
what he hoped to see ultimately accom-
plished as a permanent financial system.
1T would be a condition of AFFAIRS says
the dispatch, with national bank notes
made safe to thepeople without specific Sc
curity therefor wisely restricted by law so
as to prevent such evils as might arise and
with the entire elimination of the United
States government from paying its debts
by giving other debts in payment" This is
one of the main results aimed at by the sec
retary's plan submitted in his annual report
and also by the plan of the monetary COM
mission. Both plans contemplate the issue
of national-bank notes based in whole or in
part on the assets of tie bank and other
wise made absolutely secure, and Secretary
Gage is reported to have said that he likes
the commissions plan better than his own.
Some persons are opposed to allowing the
issue of notes based on assets but the
tending in that direction. This is a feature
of the Canadian bank system which is high
ly praised, as it was also of the old State
Bank of Indiana, whose notes were always
as good as gold A strong argument in
favor of the system is that currency based
mainly on the assets of the bank would be
really and truly elastic, and far more so
than one based on a fixed amount of bonds
and limited by law. Without arguing the
merits of any particular plan, the secretary
favOrs the establishment of a national-bank
circulation of that kind and the permanent
retirement of all government promises to
pay But he doubts if the latter point can
be secured Immediately or at one step.
When the chairman of the committee
the secretary answered:
Theoretically, there is no reason why it
should not be done now; practically, there
are many reasons. The predispoSition of the
people is in favor of government notes. /
believe the economic loss to the people
from this system, although unknown, out
weighs the narrow advantage of the mere
saving of interest secured by these govern
ment notes. You cannot change the minds
of the people. They are timid and suspi-
cious of bank-note issues. They disueleve
that any one can uphold a system such
as have sketched without selhsn and sor-
did motives. They fear that it involves
hazard and loss They recall the period
of wildcat banks. 1t is desirable, therefore,
TO make the first step so simple as to show
the people that it involves no dangers. so
that in time the full development of the
plan would be responsive to public senti-
ment.
This shows the wisdom of man who,
while convinced of the necessity of accom-
plishing a certain end, also realizes the fact
that practical difficulties and popular pref
udices may necessitate the making haste
slowly. 1t is undoubtedly true, as Mr.. Gage
says, that there is a strong popular feel
ing in favor of government notes. The
greenbacks gain a great deal of fictitious
strength from the sentiment that surrounds
them. The fact that they are a violation
of sound finance and standing menace to
the credit of the government and the sta
bility of our currency does not make the
popular feeling in their favor any the less
a reality. Mr.. Gage would not invite the
active opposition of this sentiment by at
tempting too much at once, but would
first placate it by moderate measure and
then educate it to more radical one AS
middle course this may prove to be the
wisest. At all events it shows that Mr.
Gage is not one of those visionary reform
ers who, because they cannot get all they
want at once, refuse to take anything