The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-07
Features of Annual Report of Sec
rotary Gage.
CONDITION OF FINANCES
STRONG STAND IN FAVOR OF
GOLD STANDARD.
Says That Immediate Agreement as
to Silver Is Too Remote to JUS
tify Present Consideration-Ex-
haustive Review of Banking and
Currency-Central Pacific Debt.


|. Washington, Dec. 6.-The most inter
!, esting feature of the annual report of
Secretary of the Treasury Lyman J.
Gage. made public today. is his refer
ence and recommendations regarding
financial matters. Mr.. Gage says:
The state of the treasury exhibits a
degree of financial strength never be-
fore equaled. 1t places the government
in position more favorable than has
before existed to take any steps con-
gress may consider wise toward inaug
urauag needful improvements in the
currency or judiciouS notifications in
the banking laws.
/ There are two points to which public
attention has long been directed. and
upon which legislative action has been
| earnestly desired. These are. first, the
money standard, and. second, better
Il adaptation of our currency system 10
the requirements of expanding trade
and industry. Both of these questions
are of prime Importance to our well-be-
ing as a people. and demand the con-
sideration which their Importance JUS
titles. Upon these two questions 1 feel
| it my duty to speak with earneStnesS.
First, as to the money standard.
Gold now constitutes that standard. 1t
is now, and for many years has been,
| the standard by which the values of all
commodities, whether foreign or domes-
| tic, have been measured or declared. 1t
is the standard to which reference has
been had in all contracts or undertake
| ings involving the future payment of
money. 1t is the standard which tests
the quality of value of the intermediate
currency with which wages are paid,
| and all. or nearly all. of the minor bus
mess affairs of tie people are carried IN.
| Merits of Gold and Silver.
1.-THE debate over the relative merits
| of gold and silver as the true and
proper money standard has been long
and exhaustive; but while the discus
sion has continued the advanced ma
tons of the earth, one after the other,
with hardly an exception, have adopt
ed gold as the more suitable for COM
mercial needs. Indeed, ii is vigorous
ly asserted, and with truth, that the
| United States is in this very category
that our money standard is gold-and
with some show of reason it is argued
that nothing is required other than to
let things alone Such a conclusion.
however. does not commend itself to
the Judgment of those to whom stabil-
ity in the future is not less important
than good conditions in the present.
1T has long been the desire and hope
of many intelligent and patriotic citi-
Zens to secure needful and enduring
stability in the money standard by an
international agreement in regard to
gold and silver, which would be effect
i've to that end. The realization of that
desire and hope seems now too remote
to justify present consideration; but If
those who still cherish il shall offer it
IL objection to the action above pro-
posed. 1t is sufficient answer to say
that stability on the gold standard is
the only stability now possible to US.
and if the time should come when in
ternational agreement offers a safe and
desirable substitution, the freedom OF
our representative form of government
Will give to our people the liberty of
choice.
Continue Gold Standard.
IF it be true, as true it undoubtedly
is, that gold is now our standard of
money values, the future needs only
the assurance that it will so continue
to be, until at least the people shall be
so united in their desire for a change
therein as TO be able to direct the voice
of both houses of congress and secure
the approving signature of the chief ex-
ecutive. The confidence that congress
will furnish this kind of a guaranty has
inspired enterprise, called capital into
use, improved the condition of labor
and given new impetus TO all our en-
ergies. To make this favorable state of
affairs permanent the highest security
should be given that the common de-
nominator of all calculations in value
shall remain unchanged.
1T is evident that a direct and eff
fective way to do this would be to
declare that the credit obligations of
the government itself, whether payable
on demand or at future period shall
be paid in gold coin of present weight
and fineness; or 1t would be equally
effective if, by positive law. it were
made mandatory upon the treasury de-
partment so to pay and receive the |
two kinds of money-silver and gold
as to maintain their parity under all !!
conditions. Such action would be in |
logical conformity to what has already |
been established as the policy" i. of |
the government. To the end contem-
plated the treasury should be clothed !
with sufficient powers to meet all emer- /
gencies. The establishment of an am !
pie fund, separate and apart from the /
general funds, 10 be held specifically |
as a redemption fund for demand liza |
bilities must be an important incident I
to such legislation. The recommended I
tions of the president in this particu-
lar. if formulated into law, seem TO be |
adequate"
Banking and Currency.
After an exhaustive review of the |
history of banking and currency. in |
their purposes explained, Mr.. Gage |
says:
Il beg now to point out some of the |
general limitations and restrictions !
which congress has imposed in this de-
partment. and to inquire as to their |
justice. wisdom and adequacy.
Il. As 10 conditions of capitaliza-
ton. The law requires a minimum cap
ital of $4,000 as precedent to, organi-
While this would seem to be a fair and I
moderate limit, il is undoubtedly too
large for the resources of small COM
where banking facilities are
much needed. and it is suggested that /
for places of population of 1000 or less
the minimum be reduced TO $25, 900.
-. The national bank act clearly
recognizes the note-issuing function as
a proper one, but it is plain that the
posed have, under changing conditions,
become substantially prohibitive in
their terms This ought to be re-
studied, and as large liberty given
as may be consistent with safety in
the exercise of that useful function.
Cash Banks Shall Carry.
"3. The law prescribes percentages
which national banks shall carry in
cash against their deposits and limits
the amount of risk which the bank
shall take in loans to any one individ-
ual. firm or corporation. The percent /,
age of cash reserves seems to have
justified in practice the provision of
the law, but the limitations on loans
inequality. The recommendations of
the comptroller of the currency on this
pofpf m he fo;1pd in his rppOrt 70 con- !