The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1900-12-27
THE BANKS A BULwARK.
Secretary Gage Sees in Them a Guar.
antee for the Future.
SPEECH TO NEW YORK BANKERS.
Points Ga, the Great Change Which is Taking
Place In Our Position-.From a Debtor Ma
fion We Are Becoming a Creditor Nation'-
Banks Check Upon the Aggressions Of
capitalistic Combinations.

New York Especially The annual
dinner of Group VIII of the New York
State Bankers Association, comprising
leading financiers of New York city
was held at the Waldorf-Astoria. Col
Alfred G. Barnes, president of the AS
tor Place Bank, presided. At his right
sat Lyman ]. Gage Secretary Of the
Treasury.
In introducing Mr.. Gage as the prin-
cipal speaker of the evening 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 re-
main in office for four years more.
Secretary Gage in his address re-
viewed briefly the history of questions
relating to public finances since the
close OF the Civil War. and called at
tention to the fact that many of these
questions must yet be considered as
unsettled. Particular attention was
directed to the great intimacy now ap-
parent between the affairs of the
Treasury and the general operations
OF business. which did not exist at the
close OF that war.
Under the financial exigencles of
that awful strain" said the Secretary,
we learned to take up peoples goods
by giving them an indefinite promise
to pay, endowine that promise with
the power to discharge the obligations
OF private contract. Having discov-
cred, or believing we had discover
ed, the 'greenback' to be powerful
help in time of war, we were easily led
TO believe in 1t as blessed agency in
time of peace. The greenback became
associated in the sentiment of our peo
pie with things sacred.
I'VE now have in circulation among
the people and as a reserve fund in
the banks S346, 100000 of Government
notes. They constitute an enormous
public debt, payable on demand. We
have. or will soon have, substantially
100000, 900 of silver or paper repre-
sentatiyes of silver whose parity with
gold value the Government is under
obligation to maintain. The ultimate
measure of this obligation is the diff
ference between the commercial value
of the money metal and the face value
at which 1t circulates. This difference
is not far from $500, 100000.
1--WE have system of bank note cur
rency whose volume is but family re-
lated to the needs of the community,
which a 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 most requires its use, only
again to disburse it when falling reve-
nues, the effect Of industrial dulness,
bring about an excess in expenditures.
Industrial activity increases the public
revenue, but Is checked If not throttled
by its enlarged contributions to the
idle funds in the public Treasury.
1T is these Influences" said the Sec
retary which have brought oar indus
trial and commercial life into a too
dangerous dependency upon our public
finances. This marriage between
these two whom God did not join to-
gether ought to be put asunder But
not by any hasty South Dakota divorce
method is the separation to be accom-
plished. The children of this wedlock
must not be dishonored. Time, atten-
tion and great care must be exercised"