Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1898-03-31
THEPOWEROF CREDIT
Sound Money Essential to American
Enterprise.
Secretary Gage Discourses Upon the
Prime Requisites in Our Com
merciaI Life-No Change
of Standard.

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 in the sweat
of his brow, come to our country: should
he here obtain vantage ground where his
eye could command its whole extent; could
he thus observe the detailed movement OF
multiplied human activities, he would, II
an intelligent and reasoning being, find oc-
casion for both wonder and reflection. He
would see everywhere, men toiling in the
field, in the shop and in the factory. He
would see trains of cars being loaded with
the product of the forest, the mine. the fac
tory, and the farm, or speeding away to
discharge at some distant point their
enormous burdens In short, he would ma
our land a hive Of industry.
"If 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. If he
asked one of our Inhabitants this question
even one of more than average intelli-
gence-the prompt answer would probably
be: Why, money does 1t. All these things
are exchanged for oney, and money is eX-
changed for all these things. Everybody
wants money, because it 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. 1t is true
that all exchanges are effected in terms of
money. but the real operating agent is cred
it and the instruments which embody or
represent it.
Power of Credit.
at is my purpose to emphasize the su-
perior power of credit in the affairs OF men,
and to consider briefly those influences
which hinder or help its action. There is in
sight in our country a volume of money
gold and silver alone considered, all forms
of paper money themselves being credit in
Notwithstanding like 81 OO,OOO.OCO, but
In fairly prosperous times, like the present,
the volume of credits, operating in pro-
ductivity and exchange, is equal TO at least
$4,000, ,000, 600 If we can picture IL as a
stream or a river, can fairly say the
rise and fall of this stream registers indus
trial expansion or contraction. 1t is fed
this energizing stream-not from physical
waters coming down from snowclad noun
tains. Its sources are in the minds of men.
ut is not misuse of language to say,
credit, with its multiform Instruments, Is
the real money of commerce. As transac-
tionS increase, 1t increases as industry
halts, it's volume is reduced. 1t is created
is transfers of goods and wares take place.
1t expires or is canceleu III 1lndl SellltliIcltS
through the bank or the clearinghouse. II
is always sufficient TO itself
whatever disturbs these general faiths
and condolences unsettles commerce and
disturbs industry. Unhappily, the disturb
ing Influences are numerous, ana by thelr
interposition from time to time, sufeIlnS
and ruin result. Wars, the fears OF war,
crop failures, widespread industrial re-
volts, shocks arising from the betrayal of
great tiduciary 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 a radical
change in the money standard, to which
all commodities and all credits stand final
ly related.
Basis of Doctrine.
"And yet we find a great party, in blind
disregard of this fact, placing, as founda-
tion stone to their political doctrine, a
proposition charged with the most destrW-
tive consequences to our commercial and
industrial life. This proposition is urged
upon the people with a fanatic zeal which
would inspire admiration If enlisted in a
useful or noble cause. But it is zeal born
out of nonreason, stimula ted 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. He must employ labor and provide
for its payment. The merchant is subject
TO the same general rules of action The
bankers relation-not less important-is
perhaps more delicate and more involved
than either of the others. Popularity sup
posed to be dealer in money he is so only
in an incidental and necessary way. He is
really dealer in credit.
And yet it IS against these that the pol!t-
ical leaders of discomfort illuminate their
burning denunciations. They claim that
the money standard, to which for GO years
our industrial affairs have been related, is
an oppression and hindrance to prosper
ity. They charge that its maintenance is
the result Of a conspiracy born OF 'insati-
able sordid greed They seek to push our
industrial social fabric from the good
foundation of the worlds money on to the
shifting, uncertain sands of an obsolete Sill
verism.
Era of Progress.
I'm spite of the unsettling influence OF
their doctrines, which have again and
again alarmed the forces that make for
progress, which have more than once sent
capital into hiding, crippled industry, ana
sent labor into idleneSs, the evidences are
everywhere that we are in a state of
progress, net decadence. Let me cite few
of the evidences: Within % years accord
ing to them, the period of our decline) our
population has increased 62 per cent.
Wealth has increased IN q ratio lnTee tliilSS
as great as the population. That the dis
tribution Of increased wealth has been gen
eral is proved by the savings banks, the
number of whose depoSitorS and their ag-
greEated accommodations having grown
ratable with the increase of wealth.
"Our foreign commerce-now well on TO
81. 900 eco 0O0-has increased in its ratio TO
population. During these % years the for
eign commerce OF Great Britain increased
13 per cent, that of the United States 5l
per cent. Compared with Mexico, the idyl-
lie land of the silverte, our export trade
has increased lis per cent, against an in
crease in Mexico Of q per cent.
What Of our domestic affairs? Our rail-
hoads have increased in mileage from TO-
000 In 1873 to nearly 200, eco miles in 1897 with
a reduction in cost of freight carriage of So
per cent. The mileage of telegraph lines
has, during the same period, increased
from $1,000 miles to over S00,0O0 miles, with
an average reduction in message toll of 40
per cent. The production of raw iron has
increased from less than 100000 tons per
annun to about 12,CG0 GOO tons; coal, from
AZ, ,OO0. coo tons to lS0,00O,000 tons: petroleum,
from G,0C0,G 600 barrels to GO 600, eco barrels.