New-York tribune., 1899-12-23
NEW-JERSEY NEWS.
GAGE ON PUBLIC FINANCES
THE SECRETARY OF THE TREASURY
SPEAKS AT ORANGE.


PROBLEM AT THE ANNUAL DINNER OF
THE NEw-ENGLAND SOCIETY.
Orange Dec. 2 (speciaD.-The NewEngland So
ciety OF Orange celebrated Forefathers Day to-
night by a dinner in Upper Music Hall Covers
laid for two hundred guests. The hail was
decorated with evergreens and American nags,
while behind the presidents chair was mass OF
flowers and two large flags.
Camilus c. Kidder. president OF the society pre-
sided. and at the table Of honor were the speakers
OF the evening Secretary OF the Treasury Lyman D.
Gage. the Rev. Walter D. Buchanan. OF New-York;
Justice William w. Goodrich, OF New-York' ana
Severe Malet-Prevost who represented Venezuela
before the Paris Tribunal Other guests or honor
were Governor Foster NJ voorhees,. David A Ken
nedy and Everett Frazar ex-presidents Of the So
ciety, and Frederick W Kelsey. The chief address
Of the evening by Secretary Gage.
SOME ASPECTS OF THE PUBLIC FINANCES.
Secretary Gage spoke upon Some Aspects Of the
Public Finances" which he treated under four
principal divisions:
First-The Independent Treasury-ts desrability
measure Of safety TO the public funas ana no tb s
capital circulating in the form OF money. - - o,u
second-The effect and influence for good or eVl'
Third-The Money Standard.
FOurth-Bdnking ana currency
The Secretary dealt briefly with the hrst three
topics and devoted himself to the fourth PROPOSE
tion, saying In part:
While stability in the standard Is Of commandlng
lating medium OF exchange Is most desirable, X
Now, ii Is a fact as familiar to US as the most
common affairs OF life that trade is carried on,
goods exchanged and wages paid in much bSi rrs tns
credit substitutes in the form or book creli's
notes Of hand. checks and drafts ana n,rss "har
popularly named paper money. II is, OF COURSE
vitaly necessary to economic heath and soundness
that all these substitutes and Intermediates
have such relation TO reaI mUleS mh1S ito such
money-as TO be certainly convert1ie lhto lad lad
at the b1 will adj Sf the to the
society. and become a vast economizer IN tne USE
real capital and like all capital, must be erpeTpt pro-
duced at the cost OF sacrihce ana LaDoi' "a cra-
ated without cost and wi,nin the limits OK prui pi
dent safety. agents Of the highest soca adit 40 ~
transfer capital without the condition OF an I'M M
mediate equivalent In exchange NIthouI az would
ton which credit performs the use OF capIshl
1t e Te fo 81 rana Gould indeed be exchanged for
one FORM f U t canjtai but n would still be on
even terms Of so much capital for so muCn @ p,aea
credit gives to Character and ability the use Oh
capital upon the promise Of payment ased into
and thus the tools Of production are e9gd not
the hands OF the capable and wise, VINO couiu No'
Ss nos fnncon which the banker performs
Is Indispensable the efficiency Of tneCpgshed the CpgTbh
struments through which trade is accont,p T., Soore
II this is true as 10 foreign trace ~ 10 Htrhe
forciby true as to our domestic operations ,abnT
exchange and reexehange 0t tr raw or own borders
amounted during the year nov. c.oS1d5s, c.oS1d5ss,rd money
sII god %as less tban 81 900 600 900 and even as to this
the bulk OF II remained stationary IN St trede
yertss yaes er Fydehty PS with the credit machinery EN-
ployed. That machinery conslsteI or Go checks
drafts and paper money. so-caled az banEins
and effective TO the end designed oy tHe O"""'e
agency.
THE BANKER NEEDFUL FACTOR
not my purpose to iqqd l hs 9a9dfr needfu factor in
our industrial system SO also the merchant ana
R Rs miller Ha o. hf pbantSropy but the hope OF gain
Their respective services are not sctio hon
orabiy and Justly he. like the miller VINO gIilIs los
the grst with equal neness for all ana ro taHes nose
he se-ves; simply this and nothing more. MOI .oeros
Now OF all the instruments OF eredl, tner fn he
multiplied smaller affairs OF life such as ihe pay
ment OF wages the purchase OF commodiues ST., IN
small quantities at isolated points In the INTERIOR
and I'm the small retail purchases az the snoPq to
eIgsEt u the most effective for these purposes is
paper money or metallic com OF sIrs' ~ hUsjness
iiSo the hank check or bank draft best serves but
in the matters TO which have just referred they
must now pause again to speak more specifically rt ~
Of the bankers natural function. There Is Lack 9d
understanding Of this point II ouehI 10 oe deaIeT
clear II is popuarly supposed tna ne Is d ugaien ~.
well.
him but that is only TO meet such demand as may
from time 10 time be made upon MIN lor Nie ueuS 10
he owes That necessity IS an occasion of loss ail
expense not OF profit. II he were money deaIer
he wouid be ruined by his expenses, since ne re,
ceives IL and pays II out AT the same price ailu
without charge. He is really a dealer In creuils
end I'm exchange Stated more simply sun, ne
swans his credit well known and enectye as IL
ought 10 be- for the credit obgations or ms Gus,
he Ineffective in the market. The trahsacuQh IS
eydenced hy the note Of the customer, win OF
without security as the may be. while IN re-
turn the banker gives his customer an open cieulI
unon his books against which the latter may ara"
his checks or drafts. occasion may require
But IL often occurs that the customer purPOse
cannot be thus served He desires TO pay wages
or TO go the frontier to puy lunoer or @ VI
corn He must have a medium OF excnange ulreI.
ent from his own check or dratt. Ihey are not
well enough known to be available In such a case
the well known bankers notes or mana IN sulthoe
Denomination will exactly suit ms needs. SocleIE,
left in state OF comparative freedom, mas 1y $40"
stems worked out for itself those tools ana aPpL-
snces and methods best suited TO It's needs Inc
,rsctioe ~ banking is as natural an evolution as is
tbe locomotive the steamship ana IN lls reia-
tion 10 modern industry and commerce IL IS hardIy
les irnnortant and serviceable Note issuing was
a 6avelonment Of the natural function or a oanK,
tbst fpnction being 10 make private credit effective
"a Commercial and Industrial needs. what the
ban does in a large way with the alQ OF
cbAcks and drafts the bank note does in smaller.
but equally necessary way
P1GIpITY OF THE CURRENCY SYSTEM
II is claimed that society itself knows by expert,
once what tools methods. machinery, customs ana
hest needs, and is entitled 10