The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-20
WEDNESDAY, DECEMBER 20, 1899
TWELVE PAGES.
Hazy Ideas of Finance.

YER since his appointment to the
treasury portfolio Secretary
Gage has been laboring earn
estly to secure the enactment of
measure to more thoroughly commit
the country to the gold standard" This
is the exact language employed by him
in one of his statements before the coin
age committee of the house.
In view of the fact that such policy
had never been advocated by any re-
publican president or secretary of
treasury, or by any national republican
convention, this course by Mr.. Gage
cannot be regarded as anything less
than in the highest degree radical. 1t is
a complete departure from all the ira
d.tions of the republican party.
That such change will be certain
to have a marked effect OF some kind
upon financial conditions and conse-
auently upon the welfare of the people
must be obvious without discussion 1t
10 plain, therefore, that either Mr.. Gage
or any one else who attempts to force
such cha nge of policy upon the coun-
try should thoroughly understand the
nature of the question with which he
is dealing.
Perhaps the secretary does this, but
Ii so the language he employs in ex-
pressing his ideas fails to indicate it.
Among other things he has declared
that coinage will add nothing to the
value of a metal-that it merely
changes its form, Whether he is ig-
norant enough to really believe such a
thing, or was merely trying to deceive,
the Standard does not pretend to know;
but it does know that it would be a
hard matter for any man to make a
statement that is farther from the
truth. He might just as well have
said that to convert a piece of wrought
iron into horseshoe will merely
changei is form and give no increase
Of value. But we all know better than
that The horseshoe is worth more than
the piece of iron was because it has
been made available for use to which
the unworl1ed iron cannot be put So
1t is with coin, provided it is legal ten
der. 1t is available for the payment
of debts, while the piece of uncoined
metal is not.
Again, Mr.. Gage, in a written state
ment to the coinage committee, denied
that the quantitative theory was sound
and asserted that an increase of money
supply had no effect upon prices or
business, except that when business
expanded then more money would be
needed to sustain it. In this statement
he showed a confusion of thought that
is inexplicable in man who has been
forty years in the banking business
He both denies and admits the guam
titative theory Of money in almost the
game sentence.
Take his own statement and assume
that business has expanded" thereb.
needing more money to carry 1t on
Why is more money needed and wha
will be the effect if the money is not t
be had? 1t is needed because there ar
more things to be exchanged for money
If wheat is a dollar a bushel and
bushel of the grain is to be exchanges
for cash, there must be a dollar Il
money to effect the exchange. But i
two bushels are to be sold at the sam
price, as a cash transa elton, two dollar
will be required. And this principl
holds good in all business wherein
money is employed.
Now to go on a step. Suppose tina
the increased money that is needle
eannot be obtained. What will be til
effect? One of three results will fol
low: Fewer things will be sold, or tn
same number will be sold at lowe
prices. or some of them must be sol
on credit. But when an article is sol
on credit 1t must be paid for some tins
so that the credit, after all, is only
temporary expedient. If the person OBJ
tanning the credit fails to pay when tn