Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-01-21
TWELVE PAGES
SATURDAY. JANUARY Fl, 1899.
MONETARY ELASTICITY.

Secretary Gage. we fear. is a very i'll
informed man and one of two
narrow original resources to &C.
cupy the position he does, which
demands statesman, and much
more than a broker. to fill It, He
lays great stress on elasticity in curren-
cy.-and Yet he can see no provision
for it save In the wise and benevolent
discretion of those private money
mongers and lenders. the bankers. They
are to be empowered to print and issue
credit money" without security, at
their sweet will. to furnish our sole and
exclusive currency. on heavy interest.
In this credit money" to be contracted
and expanded at their pleasure, so as
to maintain that due "tightness of the
money market most favorable to the
mongers and bankers. That is the
plain upshot of 1t all. no matter in how
many fine words 1t be wrapped by the
Secretary, or his interviewer, E. V.
Smalley.
An elasticity in the hands OF lenders:
an elasticity wholly beyond the hands
OF borrowers or government: the vol
nme OF currency to be determined sole
ly by the makers of the credit money"
or which 1t is to consist,-a money
Wholly unsecured and based altogether
upon confidence" so often deceived
and misplaced especially in pecuniary
trusts: this credit money" to be mada
Hobson's choice" for the whole pub
lie Of the United States, by removing
every possible competitor from it's Way.
this is the sine qua non Of financial
reform. as 1t has finally fermented IN
the deep depths Of the Secretarvs
thought vat. Why, Mr.. Gage. If we did
not know you and your trusted posi.
ZION. we would certainly suppose Won
10 De the agent. attorney, promoter and
touter OF n gang of swindlers. putting
UP an open and shut" confidence
game. OF gigantic proportions on tho
United States and It's $4,000. 600 peon,e
That's precisely how Il would Iook
MI Gage. II we did not know you TO
be a Chicago banker Che peer n, n
Chicago Alderman any day. and hon.
orable Secretary or the Treasury OF This
Union 1t would be monstrous to i'm.
asihe mat elasticity had got into the
secretary's conscience and allowed him
10 betray the great public interests com
mltted to him. We were about TO saw
petray his trust" bat what Is his
trust? Is it the money-trust; and does
he recognize no other?
Let the banks and bankers he tho
admitted repositories and depositories
oil the supreme knowledge and wisdom
relating to money. currency and bank.
Ing Yet 1t would be supreme ienoropco
and folly to entrust them with the now
ers they so prcsumptuously and con-
ceitedly demand. They are not inmac-
ulate. nor Is their business of such a
character as to be noted in any age or
country mot even in 1899. at Chicaco)
FOR developing the unselnsh and public
spirited virtues. Money lenders are NOT
transformed into guardian angels by
being called bankers. though some of
them are very worthy gentlemen. MS
there are also others
Nor are they exclusive custodians OF
elasticity in currency. as the Secretary
thinks. Hon. John Sherman once. in his
prime Uhough not from Chicago, sug-
gested convertible bonds: to be held as
an investment when the demand for
money was not urgent. but to be dcpos-
tied in the Treasury for currency, when
that was needed. What is the matter
with that? 1t infrnges on the bank
ing business" does it? Yes; and IL very