The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-12-20
ADDRESS BY SECRETARY CAGE.
Too Dangerous Dependence Upon
Pablo Finances.


| New York, Dec 19-The annual din
ner of Group VIII. of the New York
State Bankers association, comprising
all the leading banks and banking
houses of old New York city was held
at the Waldorf Astoria this evening.
Some $50 members and guests attended.
Colonel Alfred c. Barnes, president of
the Aston Place bank and chairman of
the group presided. AT his right sat
Lyman J. Gage, secretary of the treas
ury Secretary Long of the navy was
to have attended, but was obliged to
decline.
In introducing Mr. Gage to the guests
President Barnes said the New York
bankers Joined with the Baltimore
bankers in what the latter recently said
when they hoped that Secretary Gage
would remain in office for four years
more.
In his address Mr.. Gage reviewed
briefly the history of questions relating
to public finances since the close Of the
civil war and called attention to the
fact that many Of these questions must
yet be considered as unsettled. Par
ticular attention was directed to the
great intimacy now apparent between
the affairs of the treasury and the gen
eral operations of business which did
not exist at the close of that war. He
said that we have at present system
of bank-note currency whose volume is
but family related to the needs of the
community which properly construct
ed bank currency most economically
ic cd tn
ume by the price of Understanding
United States bonds in Wall street.
TT Is these influences" said the sec
rotary (which have brought our indus
trial and commercial life in too dan
gerous dependency upon our public
finances. This marriage between these
two whom God did not join together
ought to be put asunder. But not by
any hasty South Dakota divorce meth
cd is the separation to be accomplished.
The children of this wedlock must not
be dishonored Time, attention and
great care must be exercised"
Referring to the system of few lar
ger banks with multiplicity of branch
es, the secretary said that such sys-
tenn could not probably be established
in this country. while recognizing
the value of it as to strength" said he,
Eve are too afraid to centralize power
and authority. 1t antagonizes the spir-
it of our institutions Our political sys-
tenn is representative-itb begins in small
units.
Something like this is vaguely de-
fined in my thought as possible in our
banking system-non-conso of
interests, no absolute sovereignty, no
powerful head with authority to create
and control, but with all the power nee
essary to combine against common dan
gers; the individual bank an independ-
emit unit; the district clearing house a
center of association where the surplus
strength of the strong could be made
available to support with entire safety
and with proper reward the exposed po- !
sition of the monetarily weak, The dis |
.rict clearing houses, associated in a
similar way, might be made to consti-
ute the national clearing house and
hus in lines almost parallel to our po- !
itical institutions we might secure in
he field of banking what we enjoy in |
,ur national life, namely, individual
freedom with an associated strength,
which in the nation has been found |
quail to all emergencies.
Here at home In our land we are
witnesses to what is nearly a metamor-
,hosis In previous conditions and meth
IDS of business. The consolidation of
apital the Capitalization of industries,
xcite new and serious inquiry as to the
consequences and effects they may car
v in their train. Are they the natural
nd healthful unfolding of a true eco
omic movement viii they carry ben
fetal fruits which will find an equita-
lie distribution through the body poll
ic as a whole, or will they prove to be
ngines of power by the aid Of which
he few can exploit the many?
my faith is strong in the first direc-
ion, but the real meaning and future
Influences of these modern phenomena
hould be studied and made clear to the
eneral comprehension"