The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-12
Circu iation Statement.
The phi1anthropic Mr.. 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 I'M
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-
ficiaries of such a 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
all 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 per
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 Mr.. White. lit would do
away with the incentive to Treasury in
reference In the operations of the
money markets. under the stress of So
called crises" That is exactly what ii
would do Under the proposed system
the Secretary of the Treasury would
have neither the incentive nor the pow
er TO 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
MI tlsr
ury to prevent a successful corner in
money. and to check panics, by gong to
the relief of the market, is a sad handi
cap on the great trust-bank combina-
ton. 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
TO deposit bonds as security for Gov
eminent loans would be abolished. 1t
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 ii 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 way to make them earn four
per cent or more. So the system would
not involve any loss TO 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 a 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
TO 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 II, 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 il 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
eminent but to the Administration. II
is not hard TO conceive how a proper
understanding with the favored banks
nigh: lead to the accumulation of a DO
litical corruption fund so vast that |
there could be little doubt of Its ability |
10 purchase Presidential elections in
definitely: that is. if we are to Judge of
the future yenality of voters by the ex-
perienoe of the past. Mr.. Gage is too
upright a man and too faithful a pub
lie officer to profit personally by the
enormous power he possesses TO put his
tnancial friends In the way of reaping
millions; and this power would be in
nnitely increased under the proposed
Rhite-Gage system. But another Sec
rotary might not be as pure and self
sacrificing, and no one can doubt that
the temptation to take a moderate COM
mission on the sum of Treasury favors
TO some individuals might be irreslsti-
Bile. II would be comparatively easy for
person In such a position to make a
few million dollars year without trou-
BILE, and without attracting any particu-
lar attention. It certainly would be a
pleasant thing 20 enjoy the power of
sestowing the peoples money among
Institutions in the confidence of the Ad-
mfnistraion, and without regard To
their claims 10 consideration otherwise;
but we are Of the opinion that # will
not be granted TO any Secretary of the
Treasury, while as much as we have
left of the Republic remains to U.S. Con-
gress is not likely TO view the White-i