The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1899-12-23

New York. December 22.-Ths annual
forefathers day dinner Of the Orange New
England society was held tonight in up.
per Music hall, at Orange, N. J. The
hall was decorated with tbs national COL
ors and Christmas greens. About thirty
sat down TO the tables. President q. j..
Kidder pre- sided and acted as tosstnastsr.
The principal speaker of the evening was
Secretary of tas Treasury Gage, whose
topic was; "Some asl eets of the public
ilnancss."
SPEECH OF MR.. GAGE.
Hon. Lyman J. Gage, Secretary OF the
Treasury, said In part:
/ now raiss the question toward which
all have said concerning banking and
currency has been tending. That quss-
ton 10 this: low far shall the power Of
the law limit or inhii 1t what we have
agency evolved through the outwork Jugs
OF the Industrial and trade rslati 1nships
OF men to each other.
The answer depends upon our theory
OF the rights OF the al izan under the law.
There is n theory that men have no y shts
o her than thoss rived from, or cen.
isrred upon them, by the law. Those who
rover to assume and ois1harge the func
tim of bank ing, with lis conoon liant
of nots lug, is q p,il ilege conferred
by the law, and that this pii ilese shoDid
be granted only WITHIN such liu Its Rs this
law-mahiag power may be convinced tina.
the inexo rabie reqr irement5 OF tocisty
demand.
The other theory IL TINT men are en-
dowsd By nature W it'll cert il irnli snable
fights. among VII ich are life, liberty. aid
the pursuit of hapi mess. Ibey who hold
to til IL theory may justly cls / N that scci.
ETY. itssif knows BY expeI fence what tools,
methods, mach ioery, customs, and ar
engagements best cit It's needs, ami Is en-
titled to possess and enjoy them. The
primo ipIe, IL a true one, holds good Ia
banking. AS every where elsa. sui ject only
70 the counter principle that legal re-
stTt lot Is jusiiiiabie at tho ptint where
the acton OF the ci izep. alone or assoc lat
ed with ki8 fellows, Is or may be 10 in ial
TO the lights of others.
Ibis prineiple, as distingu ished from
Its oppos i5e. y IN, l thiok, be recogr lied
by the majoirty as Ia perfect harmony
" it'll AmsI i an ideas, and the gen ius of
eur oonsti sution. AIp'i2d to banking. it
would lsave 20 the banker anu his dealer
the arrangement Of tht IL mutual oreo L.
undsrtas iugs. 1t would allow the bank
sr to extend his credit through his notes
OF hard, or by an open credit on his
books, as might best suit the convenience
Of his dealers.
p.isty Of such limitation and restriction
sas will snve the general public from the
Injurious effects of reokls use OF such
Q liberty. Tho circulating notes Issued
by the banker should he conditioned by
safeguards ndtqt ate to protect the note
dealer from loss. Upon this point do not
want to be misunderstood. Ample safe
ON r1a fnr N ION nf the hnIdara nj
such notes must be provided Whether
such safeguards should consist Of specific
security deposited with the Government
in trust ms now required, or whether they
should bs furnished In some other
adequate form, is u question Of expedi-
ENJOY. The question ss 10 what IL truly
sxpsdient is, in this connection, an i'm
portant and many sided one, and l have
not the time TO cons ider 1t. Certain 1t
IA thai, under the present limitations and
req airsments Of law. our currency sys-
tem IL rigid, expensive and incapable CT
Ircperly nesting the public requirement..
Nor Is this a new discovery. Nine years
ago Mr.. Window, then Secretary Of the
Treasury. In his reporr to Congress used
the following language:
1.-THE demand for money, In this coun-
try, IL so Irregular that an amount of cir
ouIation which Will be ample during ten
months of tine year will frequently prove
IS to cause stringency and commercial
disaster. The crops OF the
country have reached pre- portions SO I'm
mense that their movement TO market
In August and September, annually caus-
es a dangerous absorption OF money. The
lack Of a sufficient supply to meet tie
increased demands during these months
may entail heavy losses upon the agri-
cultural as well as upon other business In
teIests.f
The truth of Secretary WINDOWS state
ment has been many times demonstrated.
1t Is recognized ana enforced by Presi-
dent Mckinley. In his late message TO
Congress he said: Increased activity In
industry, with its welcome attendant
larger employment for labor at higher
wages gives to the body of the people a
larger power TO absorb the circulating
medium 1t Is further true that year by
year, with larger areas OF land under cul.
tivation, the increasing Volume Of agri-
cultural products, cotton, corn and wheat
calls for larger volume OF money sup
ply"
The President continues: "In Its earlier
history, the national banking act seemed
to prove reasonable revenue through
which needful additions to the eiroula-
tion could from time to time be made.
Changing conditions have apparently
rendered it now imperative to that end.
The high margin In bond securities re-
quiIed, resulting from large premiums
which government bonds command In
the market, or the tax ON note issues. or
both, operating together. appear to be the
Influences which impair its public
utility"
1he explanatory paragraph will be re-
ceived by many with inoredulity. They
have been led to believe that the issue of
circulating notes by national banks Ia a
monopolized privilege, from which they
derive enormous profits. The facts may
bs briefly presented, and they best refute
the common error.
Under the most favorable circum-
Stances, the profits now derivable from
this source to a bank with a capital, say,
of 800 COO usip0 four mar cant bonds as a