The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-20
MR.. GAGE TO BANKERS
SECRETARY OF THE TREASURY RE-
ITERATsEs wELL-KNOwN VIEWS.
Urges Reform I'm Our Banking and
Currency Systems-T. B. Ree0
Wants a Mixed Currency.

NEW YORK, Dec 1s.-Secretary OF the
Treasury Lyman ]. Gage was the guest of
honor and the principal speaker at the an
nual banquet of Group Eight OF the New
York State Bankers Association, held to-
night at the Waldorf Astoria. Nearly five
hundred members of the association and
their guests were present. George F. Baker,
president of the First National Bank was
toastmaster. Besides Secretary Gage the
speakers were ex-Speaker Thomas B. Reed,
the Rev. Dr. Donald Sage MacKay, ex-
Judge Henry f. Rowland and Amos Parker
Wilder. The toasts to which they respond
ed were, respectively: Business and Legis-
lation." The Corporate Conscience and the
Men Who Help to Make It." Lawyers and
Financiers' and 1.-The West and the Money
Power"
II was 10 o'clock when Mr.. Gage arose TO
speak and he was heartily greeted by the
diners. 1T is a strange anomaly that
while in nearly every other department of
life Improvement is the Indispensable rule"
he said "in the great field of banking
finance and exchange we go on with an in
different regard to the handicap imposed
by defective methods and dismiss with lit
tie consideration suggestions which, if
adopted. would advance society and busi-
ness affairs in the great economic field of
industry and exchange The evidences of
Improvement in all other departments of
life are manifest on every hand. Old ma
chinery is thrown away
I'm my late report to Congress- Mr..
Gage continued, Il took occasion to call at
tention TO the subject of banking and cur
rency, to point out what l believe to be de-
fects in business and to suggest some inn
provements in each which l believe are alb
solutely necessary in order to put into
safe and strong competitive relations with
those better equipped than we are in that
system OF machinery by which credit is
made as useful as capital, and by which the
products OF human industry are exchanged
for each other. l want TO excite I'm your
minds an interest in the great subject"
Mr.. Gage then briefly reviewed what nc
said was his report
Continuing, the secretary said: 1.-The
weakness of our banking system is in the
Isolation and entire separateness of the in
dividual banks over the country. When "A
period OF distrust or doubt comes over the
land there is seeking of personal safety
through that general instinct of self-preser-
Vatlon which drives men in a confused
mass over each other at the cry of fire
in the theater. / venCured TO suggest a
system of coalition between individual
members OF the banking community
throughout the country into one ceatral
institution, with convenient branches in
the larger cities. In which all banks should
be related or interested according to their
individual relative importance and which
in a certain sense should represent to the
banking interests of the country what the
Iederal government represents in our po-
/ itical system. Great prejudice exists, l
/ know. against the aggregation of great
wealth in the hands of a few men, Happi-
ly II is the law OF nature that larger gains
aggregated wealth by serving faithfully the
/ common interests than by exploiting the
community through a system of theft and
robbery"
The secretary urged that there be a re-
form of the currency system of the Ma
ton along the lines outlined in his report
to Congress, and declared that no time was
more favorable than the present for the
1udictous revision of the laws. He told OF
the reduction OF the interest charge of the
national debt. and, commenting upon it
said: The cash under the control of the
government Is larger than at any previous
time In its history. so large. indeed. 10
cause anxiety in your minds and in the
minds OF those Immediately responsible for
government finances. The financial strength
OF the government is now unsurpa ssed.
Other nations struggling with debt or in
volved in the enormous expenditures Incl
dental TO actual war or in the maintenance
OF great armies look with enviOus eyes
upon the happy condition of this people.
But times change. events succeed events.
and the brightness OF the to-day is
often obscured by the clouds that arise
tomorrow In periods OF strength ana
prosperity ii is the part of wisdom to make
provision against possible future periods
Ex-Speaker Thomas b. Reed followed Mr..
Gage. He said in part: All the dssatis-
.
seems TO be in the West and South. The
people down there have all about them
great natural resources as capable OF pro-
ducing wealth as those in the East. What
they want is the means 10 develop these
resources. The trouble with them has been
they thought they wanted currency when
they really wanted capital. For this reason
| believe in a mixed currency We must
remember that currency founded on gov
ernment bonds has received the sanction
Of forty years Of stump speaking. OF which
1 i hatrg Iona zfar fhn
been taught that there was something.
sacred about this kind OF currency But
government bonds slipping away and
/ the government Is becoming "A beggar and
something must be done. We must look to
| the future as well as 10 the past But all
thanks To Grant, Cleveland and John Sher-
man for an opportunity 10 discuss these
| questions. The voice of the people after
they have made up their minds Is the voice
OF God want 10 say 20 you to-day that
In the great problems that face this Nation
to-day we shall be fortunate II We get cold.
sensible disnassionats discussion"