Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-12-23
BANKERS CALL GAGE JOUR-
VERY OWN" AND ASK HIM
TO STAY IN THE
CABINET.
Tho Secretary of tho Treasury declares
Against Grcenbacks and In Favor of
Futher Bank Currency Expasion.

on the financial views of the admins
tration last night. He was the princf-
Group s, of the New York State Bank
ers' Association, consisting of the men
in charge of the financial institutions
OF New York city.
MIR. Gage declared u policy adverse to
the greenbacks, referring to this form
OF currency and to the required main
tenace of the partly of silver with gold
as among other dangerous influences
on public and private finance. He ar
gued at length in favor of permitting
national banks to issue bank notes
based on their assets, instead of as
now, on deposits OF United States
bonds.
He spoke with qualification of the
financial and industrial growth which
is changing America from debtor to
creditor of Europe.
He said of the trusts:
1.-TWO dangers are apparent. One is
that through prejudice and Ignorance
we may block the path OF natural pro-
gress; the other is that the force and
power involved in these great organi-
cations may be utilized for oppression
and robbery"
BIG FINANCIERS AT TABLE.
The bankers dined in the banquet hall
of the WaldorfAstora. Colonel Alfred
T. Barnes, president of the Astor Place
Bank. presided over the $50 diners. At
the guests table with him and Score
tary Gage sat Warner Van Norden,
+. ID. kilburn James Stilman, ]. Pier
pont Morgan, IL. ii. Perkins. Jr., Colo
mel George Is. Davis, Joseph c. Hendrix
Rev. DR.. George r. Van De Water. ST
Clair McKelway, George f. Baker
Frederick ID: Tappen. James NJ Beck
j. Edward Simmons, Conrad N. Jor-
dan, William a. Nash, Simeon Ford
Richard Delaneld. Charles r. Flint
Rev DR.. Donald S. Mckay, William H
PERKINS and John d. butcher.
BITTER WORDS FOR BRYAN.
In introducing the Secretary Of the
Treasury, Colonel Barnes referred to
William Jennings Bryan in the follow
ing language:
THAT Don Quixote statesman who
has turned editor in order to lombard
the walls of the treasury with soft
money bombs. which will, like soft
tomatoes, leave nothing but a stain
there"
Colonel Barnes thus eoasted secro-
tary Gage: Himself a banker-one of
our Very own the price of bankers
and Secretaries of the Trcasury-may
he remain in Office for another four
years"
Both the slur at Bryan and the praise
OF Gage were applauded and cheered.
Secretary Gage said in part:
Having discovered, or believing we
had discovered, the greenback Cthough
adopted with fear and hesitation by all
thoughtful statesmen), to be a power
ful help in time OF war, we We're easily
led to believe in 1t as Il blessed agency
IN time OF peace. The greenbacll be-
came associated In the sentiment of
our people with things sacred. 1t was
'battlc-Scnrred - blood-stnined' and
every effort to throw upon it the light
or economic truth was and still is In
many quarters resented as a sacrile
gious deed.
THE GREENBACK rs DEBT.
what is the present situation? We
nave In circulation among the people
ana as n reserve fund in the banks.
three hundred and forty-six millions
OF government notes. They constitute
an enormous public debt payable on
demand. We have or will soon have
substantially six hundred millions OF
silver or paper representa- tivcs OF sill
Yer, whose parity with gold value the
government is under obligations to
MAINTAIN. The ultimate measure of
TINS obligation is the difference be-
tween the commercial value OF the
money metal and the face value at
which 1t circulates. This difference is
not far from three hundred millions of
dollars.
We have n system of bank note
currency whose volume Is but family
related TO the needs of n community
which u properly constructed bank
currency most economically serves.
1t is now controlled as to volume by
the price of interest bearing United
states bonds in Wall street.
our independent TREASURY absorbs
the circulating medium when active
business demands its use. only again
TO disburse 1t when falling revenues
the erect of industrial dullness, bring
about an excess in expenditures In
dustral' activity increases the public
revenue, but Is checked if not throt-
t,de ny It's enlarged contributions to
me idle funds in the public treasury
1T is these influences which have
brought our Industrial and commercial
life into too dangerous dependency
upon our public finances. This mar
rage between these two whom God did
join together ought to be put asunder.
But not by any hasty South Dakota
Divorce method is the separation to
be accomplished. The children of this
Wedlock must not be dishonored. Time.
attention and great care must be ex-
ercsed
WISER IN SOUTH AMERICA,
Secretary Gage quoted with approval
the policy OF n South American repub-
lie. expressed by its finance minister.
saying: Their banks issued notes to
circulate as money. limited in amount
by their relation to capital and by the
percentage of specie they are required
to carry against note issues In this
country they do not require bank notes
to be secured by the deposit Of gov
eminent bonds, because the bank note
Is considered entirely safe to the hold
er now and to require n deposit gov
ernment bonds would tie up bank cap
ital needed for the uses OF industry
and trade"
From this he drew an elaborate ar
gument for extending the powers of
banks to issue note currency against
their assets. instead of against depos-