Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-20
GAGE NLKS OF Cl[u|
Secretary Of the Treasury De.
livers Address to Bankers
In New York.
Explains the Need OF Fuller Use
OF Credits for Business
Men.
Contraction OF Credit Not Actual
Money Scarcity to Be
Feared.

AAVASy SS0ASASy w DS
Feared.
New York, Dec. 20.-Secretary of the
} treasury, Lyman Gage, was the guest
of honor and the principal speaker at
the annual banquet of Group Eight OF
the New York State Bankers Associa-
ton held last night at the Waldorf-As-
toria. Nearly 500 members of the asso-
citation and their guests were present.
George Baker, president of the First
National Bank, acted as toast-master.
Besides Secretary Gage the speakers
were: Ex-speaker Thomas b. Reed. the
4 Rev Mr. Donald Sage Mackay, ex-
Judge Henry E. Rowland and Amos
Parker Wilder. The toasts to which
they responded were, respectively:
Business and Legislation" The CO.
operate Conscience. and the Men Who
Help to Make It." Lawyers and FL
nanciers" and THE West and the Mon
4 ey Power.
1t was 10 o'clock when Mr.. Gage
1 aTOSS 10 Spedh, dlld AAS Nea' .iNsN' >H.s
| cheered by the diners. He said in part:
in my late report to congress TOOK
occasion to call attention to the sub
1 ject of banking and currency, to point
/ out what l believe to be defects in both,
and to suggest some improvements IN
each in which I believe are absolutely
| necessary in order to put us into sale
and strong competition relations Win
those better equipped than We are IN
that system OF machinery by when
credit is made as useful as capital ana
by which the products OF human lnous-
try are exchanged for each other.
want to excite In your minds an interest
in the subject.
I'm the report referred to attention
was called to what / consider our fund
amental weakness of our banking Fys-
TEN in the United States There was
explained the function that the Dark
performs as an Intermediary, thru
which credit is made available to the
uses OF production and Industry, ana
thus given power scarcely less great
than the power of capital itself An Ell
fort waa made TO show. in the words OF
very clear writer upon the subject OF
banking. that the bank is an institution
to swap what. except for the office OF
tho hank. would he non-available for the
uses oe life: and. In passing this point,
let me repeat a suggestion made a DAY
or two since by gentleman who SAID
the nomenclature OF the street ought to
he changed we read all the time, ne
said, of the rates for money. Today
money is quoted at per cent. tomer-
row Z and next day 6, to be followed
perhaps by rate as high as 10 or J..
and people become alarmed about the
scarcity of money as indicated by these
high rates. when substantially there mas
been on change in the volume OF money,
either in the hands of the people or re-
naming under the control OF the banks.
What ought to be quoted is not money,
but credit What is the price OF credit,
stated in the terms of interest? II IS
credit that is getting difficult not actual
money that is becoming scarce.
The weakness Of our banking system
Is in the isolation and entire separate
ness OF the Individual banks over the
country. I ventured to suggest sys-
tenn OF coalition between individual
members of the banking community
thru the country into one central instl-
tuition, with convenient branches IN the
larger cities in which all banks should
be related or interested according to
their relative Importance. and which IN
o certain sense should represent to the
banking interests Of the country what
the federal government represents In our
political system. Great prejudice exists,
I know, against the aggregation Of great
wealth in the hands of a few men. Hap
pity it 10 the law OF nature that larger
gains and better advantages can be Sc
cured to aggregated wealth by serving
faithfully the common interests than by
exploiting the community thru system |
of theft and robbery"
The secretary urged that there be I
reform of the currency system OF the
ration along the lines outlined in his
report to congress, and declared that no
time was more favorable than the presy /
ent for the judicious revision OF the
interest charge on the national debt.
and commenting upon 1t said:
THE cash under the control OF the
government is larger than at any pre-
ysous time in its history, so large In
deed as to cause anxiety in your minds
and in the minds of those more imme-
diately responsible for government
finances. The financial strength OF the
is now unsurpassed. Other
nations, struggling with debt or In
volved in the enormous expenditures
incidental to actual war or in the main
tenance of great armies, look with en-
vious eyes upon the happy condition OF
this people. But times change, events
succeed events, and the brightness OF
the sun today is often obscured by the
clouds that arise tomorrow. In periods
Of strength and prosperity 1t is the part
OF wisdom to make provision against
possible future periods of stress and
strain"
GAGE MAY RETIRE.
K 4. Said He Will Resiqn Some Time