The Winslow mail., 1899-10-05
QUEER TALK OF "EXPERTS. f"
secretary Gage on Question of Issu-
ing Gold Certificates-His
Strange Reasoning

to expert knowledge that nothing of
the sort now surprises US. 1t may be
that those who permit their friends to
call themselves experts submit to the
1nfilction with the same modesty which
causes a Georgian to bow to the in
evitable when his neighbors cal him
colonel" He may know as little
about military affairs as tame lion
knows about the jungle, but if his
neighbors take a notion to call him
COLONEL" he is compelled to submit to
the inevitable, and, in course of time,
It may be, he even goes so far as to
plume himself on the title. With this
precedent in view, we have long ago
ceased to be shocked or surprised when
a financial expert puts forth a state
ment which, on examination, refuses
to stick together.
1t will be remembered that the New
York Journal of Commerce, in view of
the scarcity of paper currency in the
metropolis, has been urging the Sec
retary to renew the issue of gold cer-
tificates which was suspended by Sec
retary Carlisle when the amount of
gold in the treasury fell below a hun
dred million, Our readers need not be
told that the editor of the journal of
Commerce is the soundest of ''sound
money" men. Indeed, if any respon-
sible person should favor what-..S
called imitation" in his. hsftcb; 70 b;s hn1
editor would forthwith tbs M dortor r
and remain ths,s.4
and 1el39fcs.
This, of course, is only another way
of saying that the Journal of Com
merce could not be induced to ad-
vocate any plan or proposition not
thoroughly in accord with the doc
trines anu devices of the gold party
And when it advocates the issue of
gold certificates we may be sure that
it does so in the interest of the mer-
camille and commercial communities,
which are its largest clients. The cer-
tificates in question are simply repre-
sentations of deposits of gold in the
treasury or subtreasury, and are used
as currency as being less cumbersome
and more convenient than gold itself,
gent is shown by the fact that con-
siderable pressure has been brought
to bear on the secretary of the treas
ury to carry out the law which pro
vides for the suspension only when the
amount of gold in the treasury falls
below one hundred million.
The secretary has not only refused
10 NIL h ha :
lately has kept locked in his own
bosom his reasons for refusing. 1t
was rumOred last week that such a
considerable pressure had been brought
to bear on Mr.. Gage that he was on the
point of consenting. But on Saturday
last, when he was approached by the
correspondent of the New York Even
ing Post, he denied the rumor, and
stated that he is holding the matter in
allegiance, being unable at this time
to say what course he will pursue. But
lie made no bones of stating the objec-
tions that had occurred to his mind,
and he puts them in this shape:
with all the greenbacks and silver GER
tiicates and Window notes now outstand-
Ing in the governments name, l question
the wisdom of a further expansion of the
paper currency by the addition of a mass
of gold certificates, which would compete
with the rest of the market already suffi-
ciently supplied. 1t is true that the de-
nominations of the gold certificates, being
never less than $40, would naturally pre-
vent their becoming an important COM
petitor in exchanges, as they relate to
the ordinary retail trade of the country;
but, on the other hand, there would be no
in 1dI
circulation should ever become redundant
and contraction should follow, the tenden-
cy of legal tender notes and silver certih-
Gates toward the treasury fer redemption
would be augmented by the added supply
in the circulation of gold certificates"
Now, the gold certificates, which the
secretary is urged to issue, will sim
ply be evidences of gold coin or bull
lion deposited in the treasury by banks
and other holders who find it incon-
venient to use the coin or the metal
in trade, or to store it away in their
vaults. The certificates, in their es-
sence, are warehouse receipts, and they
are issued against the gold instead of
exchanging greenbacks therefor. They
would not in any true sense be an eX-
pansion of the volume of money, but
would enable banks and business men
to utilize instantly a large amount of
gold which is now lying idle.
Moreover, if, as Mr.. Gage says, the
"market is already sufficiently sup
plied,' these certificates would not en-
ter into circulation at all, because
there would be no demand for them
They would be held by the banks sim
ply as evidences of gold deposited in
the treasury. On the other hand, if
there is 4 demand for them, as good
many people intimate with the trade
situation assert, they will simply rep
resent so much gold coin and will not
add dollar to the volume of money.
1t is somewhat difficult to follow the
secretary's reasoning in the conclud
ing remark attributed TO him. IF the
circulation should ever become redun-
dant and contraction should follow"
he says, 1.-The tendency of legal tender
notes and silver certificates toward the
treasury for redemption would be aug
mented by the added supply in the cir
culation of gold certificates"
Well. what of it? With respect to
the gold certificates, the treasury has
no responsibilities whatever save those
that belong TO a warehouseman. They
would not represent the gold which
has been exchanged for government
notes; they would simply stand for
gold which had been deposited in the