The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-03-26
THEPOWEROF CREDIT
Sound Money Essential to American
Enterprise.
sccretary Gage Discourses Upon the
Prime Requisites In Our Com
mercial Life-No Change
of standard.

of Standard.
The chamber of commerce OF Pitts
burgh gave its annual banquet Satur-
day. March 10. at which Lyman j. Gage,
present as the guest of honor and prin-
cipal speaker. In his speech Mr.. Gage
touched upon the many questions as
follows
Should visitor from some alien planet.
where the conditions OF life did not require
that man should eat his bread I'm the sweat
OF his brow. come TO our country: should
he here obtain a vantage ground where his
eye could command It's whole extent; could
ne thus observe the detailed movement or
multiplied human activities. he would, II
an intelligent and reasoning being ind oc-
casion for both wonder and reflection. lie
would see everywhere, men toiling In the
field, I'm the shop and In the factory lie
would see trains OF cars being loaded with
the product OF the forest. the mine. the fac
tory. and the farm, speeding away 10
discharge at some distant point their
enormous burdens. In short. he would ma
our land hive OF industry.
III this visitor were reasoning being
he would want TO know how all this enor-
nous exchange OF labor for products and
products for labor was accomplished. II he
asked one OF our Inhabitants this question
even one OF more than average intelll-
gence-the prompt answer would probably
be: why, money does II. All these things
are exchanged for money, and money y ex-
changed for all these things. Everybody
wants money because IL Will buy all these
things. and everybody wants more or less
OF these things. and money Will buy them;
therefore everybody wants money
money is not the main active agent that
operates to accomplish this enormous vol
ume OF production and exchange. IL Is true
that all exchanges are effected IN terms OF
money, but the real operating agent is cred
Il and the instruments which embody or
represent II.
Power of Credit.
'It is my purpose to emphasize the SUI
perior power OF credit IN the affairs OF men.
and 10 consider briefly those influences
which hinder or help It's action. There Is In
sight I'm our country a volume OF money
gold and silver alone considered, all forms
OF paper money themselves being credit in
Notwithstanding like 1000 100000, but
in fairly prosperous times, like the present,
the volume OF credits, operating In pro-
ductivity and exchange, Is equal 10 at least
sl5, 900, 000.0 600. IL we can picture II as
stream or river we can fairly say the
rise and fall OF this stream registers indus
trial expansion or contraction. IL Is fed
this energizing stream-not from physical
tains. It's sources are in the minds OF men.
'It 10 not a misuse OF language TO say,
credit, with its multiform instruments, Is
the real money OF commerce. AS transac-
tions Increase, II Increases, as Industry
halts, It's volume Is reduced. IL is created
"a transfers OF goods and wares take place.
II expires or Is Cancelled In final settlements
through the bank or the clearinghouse. IL
Is always sufficient 10 itself.
Whatever disturbs these general faiths
and condolences unsettles commerce and
dsturbs Industry. Unhappily, the disturb
Ing influences are numerous, and by their
interposition from time 10 time, suffering
and ruin result. Wars. the fears OF war,
crop failures. widespread Industrial re-
volts, shocks arising from the betrayal OF
great fiduciary duties-these are some OF
the adverse influences But none OF these,
nor several Of them associated, are as
harmful as are the doubts and fears which
arise from the apprehension OF radical
change In the money standard, to which
all commodities and all credits stand final
ly related.
Basis of Doctrine.
"And yet we find n great party. In blind
disregard OF this fact. placing, as a founda-
ton stone 10 their political doctrine,
proposition charged with the most destruc-
tive consequences 10 our commercial and
Industrial life. This proposition Is urged
upon the people with a fanatic zeal which
would inspire admiration II enlisted I'm
useful or noble cause. But II Is zeal born
out OF nonreason, stimulated by prejudice
and fed by passion.
"The farmer must employ labor. and yet
carry the risk OF droughts and floods and
take his chance OF the markets for his ulti
mate realization. The manufactures must
embark his fortune In his buildings and ma
chimes. lie must employ labor and provide
for It's payment. The merchant Is subject
bankers relation-not less important-is
perhaps more delicate and more involved
than either OF the others. Popularity sup
posed TO be n dealer In money. he Is so only
IN an incidental and necessary way. He is
really dealer In credit.
And yet II is against these that the pollt-
ical leaders OF discomfort illuminate their
burning denunciatons. They claim that
the money standard 10 which for GO years
our industrial affairs have been related. Is
an oppression and a hindrance 10 prosper
ity. They charge that its maintenance Is
the result OF conspiracy born OF 'insat-
able sordid greed They seek TO push our
Industrial social fabric from the good
foundation or the worlds money on TO the
shifting, uncertain sands OF an obsolete sill
verism.
Era Of Progress.
'In spite OF the unsettlng influence OF
their doctrines. which have again and
again alarmed the TOfceS tnAt make lot
progress, which have more than once sent
capital into hiding, crippled industry. and
sent labor into idleness the evidences are
everywhere that we are In state OF
progress, not decadcnce. Let me cite a few
OF the evidences: Within % years accord
ing 10 them, the period OF our declne) our
population has Increased GO per cent.
Wealth has increased I'm ratio three times
az great as the population. That the dis
tribution OF increased wealth has been gem
cral IL proved by the savings banks, the
number OF whose depositors and their ag-
gregated Accommodations having grown
ratable with the Increase OF wealth.
"Our foreign commerco-now well on 60
s., 600 600 000-has increased In It's ratio 10
population. During these - years the for
eign commerce OF Great Britain Increased
l3 per cent that OF the United states ~
per cent Compared with Mexico the idyl-
lie land OF the silverite, our export trade
has increased IFS per cent, against an In
crease ia Mexico OF n per cent
what Of our domestic affairs9 our rail-
hoads have increased In mileage from TO-
600 in 1873 20 nearly 100000 miles In 1897. with