The Wichita daily eagle., 1898-01-04
Daily Eagle
NJ. NJ. MURDOCH, Editor
GAGE AND GREENBACKs

Lyman J. Gage, secretary of the Unit
ed States treasury, is unquestionabiy,
one of The clearest- headed financiers Of
this or any other country. He knows
all about that commodity which we call
money, whether it be in the form OF
metallic or paper currency, bullion or
bonds, securities or other values utlI-
lied as mediums Of exchange. He
knows what is stable and TO be relied
upon as a basis for national and inter
national transactions. and just how far
the people can go in their monetary leg
lslation with safety. But Lyman Gage
Is not politician. The pamphlet con
tanning his statements made before the
committee on banking and currency lies
before us. They consist Of declarations
and answers to questions touching the
draft of a bill submitted by his recon-
mending changes in the currency syS-
TEN of the country. We have also read
his reply to the criticisms of the Labor
Federation. While Mr.. Gage is favor
able to a currency system of gold, sill
yer and paper, he also looks to re-
1irement of the greenback and to max
ing national banks the source Of the pa
per money issue This. of course, is 10
avoid the troubles arising out of the
endless chain theory" which Cleveland
ever kept rolling under his tongue.
There is no danger to be apprehended
from the ''endless chain when the rev
enues Of the country equal or exceed
the expenditures. The country has no
business. in q time Of peace, to be run
ming into debt With money 10 meet
expenses in the treasury, the ''endleSs
chain.' if not a myth. is at least inoper-
ative.. Mr. Gage ought TO see that any
attempt TO retire the greenback and re-
place it with "a national bank issue
must mean trouble. if not disaster, 10
the Republican party. A majority OF
the people of this country may possibly
be in favor Of gold standard, of. a cur
rency system good as gold all around,
and so redeemable, but a majority OF
the people Of this country Will not listen
to a proposition to retire the paper
money issued by the government ana
substituting a national bank issue. AS
we said before. the government has no
business incurring debts or making ap-
preparations beyond IT'S ability 10 pay,
but when it does so, it can raise hun
dreds of millions in gold on It's bonds,
as Cleveland did in The late squeeze and
thereby save its credit by being prepar-
ed to redeem it's pledges and meet its
obligations But where would rhiS c0un-
try have been during the aforesaid
squeeze had our money system been
turned round and hts money issue in
the hands Of the banks? Where would
the banks have been? Banks cannot
raise gold at will, on a moments no
tice, when securities have gone fiat. A
failing banks bonds have no market
value. otherwise there would be no fail
ing banks Still, aside from all these
propositions, and whatever the present
congress may do in the way OF changes
in the currency system the treasury
note cannot be retired without making
trouble for the Republican party. 1t
may be prejudice, ignorance or want OF
intelligence, upon the part Of the major
ity, or what not, but that a large major
ity are against the substitution of ma
tional bank notes for the greenbacks
There is no question.
This money question is the reef that
threatens the Republican barque, With
the sixteen to one" silver sentiment
still alive and glowing. and Greater
New York in the hands of Tammany
ready to carry that state with solid
south and west for Bryan or any other
fusion nominee for president, on n sill
ver-greenback platform. the Republican
party must steer clear of such sweeping
and radical changes as the retirement
of the greenback, and to avoid. at what
ever sacrifice. making appropriations
beyond the ascertained revenues.