The Savannah morning news., 1900-12-20
Mr.. GAGE ON FINANCE
sPEECH AT NEW NoRK nANKEns'
DINNER LAST NIGHT.
NOTE OF WARNING SOUNDED.
SILVER. CUnRENCY AND TRUST
QUESTIONS tot UCHED UPON.

suit. of the Present ~ystcm--t atom
netw~cn Industrial LiGr aud Pub
lac Finances EntircIs Too Close.
New York. Dec is.-The annual dinner
OF Group VIII Of The New York State
Bankers Association. comprising an tho
leading hanks aud banking houses OF old
New York city. was held al the Waldorf
Astoria this evening Some - members
and guests attended col Alfred g.
Barnes. president OF the AH,or Place Bank
and chairman OF the sroup. presided Al
has nght sat Lyman J. Gage. Secretary
OF the Treasury. Secretary Ions Of the
Navy. Wos TO have attended but was
Obliged To decline.
Secretary Cages address reviewed
briefly the history OF questions relating
to public finances since the close Of the
civil War Many Of these questions mast
yet bc considered as unsettled Parucu-
lar attention was dirc.te to the great
intimacy now apparent between the af-
fairs Of The treasury and the general op-
erniions OF the business which dli not cx-
ist ot the close OF that war
we have or win soon have subsianu-
ally six hundred million Of silver or paper
representative OF silver whose parity with
gold value the government Is under ohl-
cation 10 maintain. The ultimate mca-
sure OF this obligatio g. the difference be-
tween the commercial vain. Of the money
metal ana the face value at which Il cir
culatcs. This difference Is not far from
ssoos0Ooo
We have system Of bank note cur
rency whose volume II but family re
lated 10 the needs Of the community which
properly constructed bank currency
most economically serves Il ls now con
trolled as 20 volume by tho price Of inter
est-bearing United States bonds Ia wall
street
"Our independent treasury absorhs tho
circulating mefium when active business
most requires It's use. only again TO dis
hurse % when Telling revenues. the effect
of Industrial Guinness. bring about an ex-
cess or expenditure. Industrial activi-
~ Increases the public revenue. but is
checked. II NOT throtiled. by ils enlarz =
contributions TO the Idle funds Ia the pab-
DC treasury.
1T is these influences" said the secre-
tary. which have brought out Industrial
and commercial lie into a too dangerous
dependency upon our public finances
This marriage between these two whom
God iid not Join together. ought 10 De- put
asunder But not by any hasty south
Dakota divorce method Is the separation
to b. accomplished The children or tais
wedlOck must not b. dishonosad Time
attention and great care must be- exsr-
ciscd."
la closing. the Secretary said.
III the course Of trade with foreign ma
tions which has marked the hast three
or four years is TO continue, We are 10
assume not long hence a financial rela-
tionship heretofore unknown. In the long
past Ne have been under tribute OF I'M
terest for the use OF capital furnished
from abroad. the promise Is that We shall
soon become recipients OF interest on cap
ital furnished by ~ for use abroad. Aa
our horizon expands We must b. ready to
meet enlarging opportunities and 70 oc-
cupy wisely and well the broader field
where our powers are to 5e exercised
Here al home the cancellations OF
capital. the Capitalization Of lndustriea
excite new and serious inquiry as to the
consequences and effects they may carry
Ia their train. Are they the natural
and healihful unfolding OF true economic
movement? Will they carry beneficial
fruits which VIII ind an equitable dis
trihution tArough the body polite as a
whole, or viii they prove 10 be- engines of
power by the aid OF which the few can
exploit the many7
My faith Is strong IN the nrst diree-
ton, but the real meaning and future IN
nuences Of these modern phenomena
should be studied ami made clear TO the
general comprehension. Grave conse1uen-
ces depend upon u. Two dangers are ap-
parent. one Is that through prejudice ana
Ignorance We may block the Path of nat
ural progress. The other Is that the force
sne power Involved sH these great organi-
zations may be utilized for oppression and
robbery"