The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-01-12
Secretary Gage and the Subtreas.
ury System.

The explanation made by Secretary
Gage in response to resolutions intro
duced in congress inquiring into his
management OF the public funds Is ex-
plicit and complete. 1t is document
valuable to those who may not have
familiarized themselves with the fiscal
system followed by the treasury under
the constraint of existing laws. Those
who know the regulations under which
the treasury has been operated for more
than . generation were aware, without
inquiry or reply. that every step which
he has taken was both in accord with
law and. as far as such law would per-
init. in harmony with the public in
terest.
The explanations Of the secretary IL
full and satisfactory. All that he has
done is in accordance with precedent
and law. Other secretaries have fol-
lowed the same course for the same
reasons; that 1t was to the public in
terest. AS far back as 1864 the secre-
terry Of the treasury was authorized by
law to name bank as fiscal agent Of
the government, and 1t received de-
posits after having given proper Sc
curity. In the same year collectors Of
internal revenue were directed to de-
post their receipts in certain national
banks, always with assurance against
possible loss. The policy Of Mr.. Gage
is neither more nor less than the policy
of his predecessors. approved by the
representatives OF the people, whenever
circumstances required IT.
The practice has acquired the air Of
novelty only because 1t is long since the
government was in possession Of
any considerable moneys that were not
required for immediate use. Under
Democratic policies and during the
time when the effect of those policies
was being corrected by remedial legls-
lation. the treasury was not embar-
raised by surplus. It's anxiety was
how to cover a deficit. There was no
need Of selecting depositary bank or
banks, because there was nothing to
deposit. The chief business of the Sec
rotary was to find money to meet ex-
penditures or to get purchasers for
bonds. With the return of prosperity
and the increase Of revenue, the practi-
cal question has to be faced whether
the treasury is warranted in holding
out of the channels of business from
5000, 100000 to 100000, 900 that has been
paid into it in the ordinary course. 1t
becomes most pressing and dangerous
question when there is stringency in
the market, arising not only from COM
partly from this very withdrawal of
funds. For that emergency the powers
that have been used were conferred
upon the secretary of the treasury; and
his complete and convincing statement
shows that he has exercised them eau
tiously, wisely and without fayoritism.
If we look for the reasons why such a
state of affairs should exist at all, why
an emergency is created, we find 1t in
the subtreasury system itself. The pill
ing up in the vaults of the government
., vast sums OF rnonev Tor which thera
= no outlet until II shall have been dis
bursed in accordance with appropria-
tons provided by law. or used for the
redemption of bonds, Is custom that
is bound to create exactly the situa-
ton with which Mr.. Gage has to DEAL
Given a condition of active trade. am
pie revenues and financial confidence.
and the stream OF money flows In to
government account. 1t passes into the
subtreasury. whence there is no inn
mediate exit The currency in circula-
eian Il diminished temporarily by that