The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-11-04
GAGE FOR GOLD STANDARD
RECOMMENDATION OF THE SECRE-
TARY or THE TREASURY.
LAW and Not an Uncertain Dts-
crction-Convinced OF Necessity

NEW YORK. New. "A special 10 the
Herald from Washington says: Secretary
Of the Treasury Gage in discussing with
tae Herald correspondent the Hnancial
questions which will come up fer consider
alton ~ congress indicated very clearly
that. in his annual report. he Will repeat
In q general way his recommendation for
The establishment OF he gold standard in
law and for such reforms ia the banking
laws will give 10 the country 4 more
elastic currency.
Al "a time when many politicians seemed
TO te afraid ~ the world gold Secretary
Gaze perceived that the first step in the
direction OF monetary reform was 10 found
The gold standard upon law and not leave
* based merely upon the practice of tho
treasury department, which might at soma
time bee Endorsed by a secretary of tho
treasury of the Bryan school of politics.
tits declaration to this effect before tho
banking and currency committee of the
house 81 representatives caused a lot of
uneasiness among tiinid men. In and out Of
congress.
Secretary Gage stands today just whero
he stood two years ago on this important
question OF firmly establishing the base OF
the entire financial system Of the country
upon a positive legal enactment
lnseparable from the establishment Of
the monetary standard is the necessity ot
ing Il. That no such adequate method now
exists the secretary believes Is apparent
10 all who can recall the experience OF
1898. That the note issuing and redeeming
functions of the treasury must be entirely
separated from It's ordinary operations re-
laiing 10 revenues and expenditures Sec
rotary Gage believes 10 be essential. If the
gold standard established by law Is To be
successfully maintained In times OF iinan-
ciai stress, without deranging the business
OF the country
Secretary Gage Is. II possible, more
firmly convinced than ever OF the neces-
sity OF radical reform In tho banking
system OF the country.
He favors legislation which will permit
the establishment OF banks with $4,000
capital. 10 meet the demands OF small
communities. which viii. permit banks
TO issue circulation UP to the par value
az the securities deposited. which will
reduce the tax on bond secured circula-
ton. and which will permit tho issue
under such restrictions as shall secure
the note holder without impairinx the
security of the depositor-of a limited
amount of currency against the assets
Of the banks, these notes to pay tax
which Will secure the government against
| loss in guaranteeing them.
The secretary does not find 4 necessary
| 10 go back 20 1896 TO find q practical ar
| gument I'm support Of tho banking reform
| which he advocates. Il r. only necessary
| TO refer to the experience OF the last
| few years. when the demand for money
| TO move the crops has been felt at the
| money centers more than usual, because
/ supplemented by the need for moro
! money IN all the channels OF trade.
! brought about by the increased prosperity
| ~ the country. In the absence Of bank
| ing laws, which would enable the banks
| 10 respond to this increased demand ny
| putting out their notes. which would be
retired as soon as the need for them had
| passed. the only recourse Of the busi-
| ness community was to appeal 10 tho
treasury depart ment for aid. which was
| given by the anticipation of interest on
| the public debt.
Students OF finance agree with Secre-
tary Gage that a system Of banking
which cornpeis the treasury TO periodic
ally come 10 the relief Of the banks, is
feeling among the banks that the gov
eminent will come To their rescue when
they get into difficulties. which careful
management might avoid. but also be-
cause the government might not always
be able To give the relief when needed.
and widespread disaster might ensuc.
Secretary Gage would not discuss the
hearing az the recent financial situation
iiron the question Of bank reform fur
Their than 10 say that ne would probably
use IL in his report "to point. moral"