The times., 1901-04-12
Circu lntion Statement.
The PhiIanthropic MIR. Gage.

plan proposed by that eminent human
itarian. Horace White. now Of New
York. which, if adopted, would relieve
the Treasury vaults OF their present un-
comfortable burden of cash. and dis
tribute it-all but fifty million dollars
among banks enjoying the favor of the
Secretary of the Treasury.
To people who would be the bene-
fciaries of such system, the scheme
proposed by Mr.. White and seconded
as we are told, by Mr.. Gage, must be
hypnotically attractive 1t is simple
and business-like proposition to place
ali of the money of the country IN the
hands of the Administration clique OF
capitalists and bankers. and without Sc
curity. at an interest charge of two pei
cent per annum. Even people unfa-
miliar with the mysteries of modern
bank practice can readily see what an
undisguised blessing this arrangement
would be to one of our best business
interests" Among other things. as we
understand AIr White. lit would do
away with the incentive to Treasury in
terference In the operations of the
money markets. under the stress Of So
called crises" That is exactly what il
would do Under the proposed system
the Secretary Of the Treasury would
have neither the incentive nor the pow
er 10 prevent the Money Trust from
locking up every dollar Of available
American cash, and squeezing the blood
out of the nation at will. In present
circumstances, the ability Of the Treas
ury to prevent a successful corner in
money and to check panics, by going to
the relief Of the market, is sad handi-
cap on the great trust-bank combina
tion. This would be at once removed
by the adoption Of the White-Gage
plan. The present annoyance. too, to
which bankers are subjected, Of having
10 deposit bonds as security for Gov
ernment loans, would be abolished. II
is true that. whereas the institutions
whose proprietors, as President Still
man. of the Standard Oil bank Justly
SAYS, were potential factors in the first
Mckinley campaign, now get the use Of
a hundred millions or so of the public
funds for nothing, under the new and
improved order Of things they would
have to pay two per cent year for the
accommodation. But il is plain to any
one who ever saw primer Of finance
that absolute control Of the entire vol
ume OF the circulating medium would
be worth that and more. There would
be no difficulty in lending the hundreds
Of millions around among the great cen
tres in a way 10 make them earn four
ont = Ha ,
not involve any loss 70 the combina-
ton, while it would place it in position
to hold every business enterprise in the
country and every mans property at
fits mercy. Certainly most commend
able project, from the White-Gage
point Of view
The calm insouciance with which Mr.
Gage appears TO approve such a pecu-
liar departure from the principles
which before his time. were considered
essential to the safety OF the nations
treasure box. is a significant reminder |
70 the American people Of what they
have to expect as a consequence Of their |
action at the polls last November. The |
scandal Of the custom house deal and |
Of the free use Of Government money by
a few favored banks We're common talk |
in every part Of the country prior TO the
election The result of the political
campaign was naturally, and perhaps
Justly. considered by the Administration |
as an endorsement Of its course in the |
connections mentioned It therefore. is
not to be wondered at that the chief |
financial officer Of the powers that be |
should think Il safe TO advocate another |
movement In the direction OF placing |
the currency under the control Of the /
Morgan and Rockefeller combination |
far in advance Of anything In that line |
hitherto dreamed OF as possible But. |
far from displaying hesitancy, the phi
lanthropic Mr.. Gage considers the idea |
OF turning over the whole of our ex- |
change medium to the tender mercies |
Of the trust as if such a thing were |
merely question Of business detail
To be perfectly fair, we must admit
that the proposition possesses not only
elements Of greatness but Of potential
advantage. not, Of course, to the Gov
ernment, but to the Administration. II
il not hard 10 conceive how proper
understanding with the favored banks
might lead to the accumulation OF po-
itical corruption fund so vast that
there could be little doubt of Its ability
10 purchase Presidential elections in
definitely; that is. Il We are 20 judge Of
the future venality OF voters by the ex-
perienoe OF the past. Mr.. Gage is too
upright man and too faithful pub
He officer to profit personally by the
enormous power he possesses 10 put his
fnancial friends in the way Of reaping
millions; and this power would be in
fnitely Increased under the proposed
Nhite-Gage system. But another Sec
Tetary might not be as pure and self
sacrificing, and no one can doubt that
the temptation 10 take a moderate com
mission on the sum OF Treasury favors
TO some individuals might be irreslsti-
BILE II would be comparatively easy for
6 person IN such position to make a
few million dollars year without trou-
Bile and without attracting any particu-
lar attention. II certainly would be
pleasant thing 70 enjoy the power of
5estowing the peoples money among
institutions in the confidence of the Ad-
fninistration, and without regard to
their claims 10 consideration otherwise:
but we are Of the opinion that It will
not be granted 20 any Secretary of the
Treasury. while as much as we have
left of the Repubiir remains fn nc Con |