New-York tribune., 1901-10-17
pFT(RE THE GREENBACKS.
-pErARY GAGE OUTLINES HIS FINAN-
cIAL CONVICTIONS.
upEsErvT A PRoPITIoUs TINE. HE SAYS. TO
ELIMINATE AN ELEMENT OF WEAKNESS
ADDRESS TO BANKERS.


.,uu,aukee Oct 16.-Secretary Gage delivered
ss,ass before the American Bankers As
s.,,on to-day. He was the programme
:. ,o-uorrow, but being here and desiring TO
- the city before the convention closed. a
s.rgs was made to enable him to speak to-
- He gave a brief outline OF his financial
news, as follo"s'
i believe il 10 he most desirable that the
,rand liabilities of the government, known as
oehSsit. sender notes should be put in the way Of
rassi-ernent and cancellation
sacondI believe that this can be accomplished
xttbout any burden of interest cost to the public
treasury
e,rcniation be and ought TO be so modified as
- make il more responsive TO commercial ana IN
susirial requirements. without any increase OF
ssk 10 the bill holder.
Fourth-I believe that beyond acting as guar
d;sn and for the people in relation TO ma
,ional banks. the government guarantee 10 bank
note issues should cease
FqftfI believe that the public moneys in excess
- reasonable working balance for daily use
should be deposited in national banks That
simple and safe system OF distribution OF funds can
fe devised have no doubt
sirth-I believe that in periods Of national peace
90 prosperity the public revenue should be some
sst in excess of public expenditure, and that the
surplus revenue should be applied 10 the reduc-
ion Of the public debt
After presenting some statistical facts show
ing the present strong and satisfactory condi-
ion of the national finances Mr.. Gage said:
Looked at from the standpoint of true states
naDsbip. it would appear that the present is the
most propitious hour in all our history. and as
tature to enter upon reasonable and judicious
measures TO eliminate all elements OF financial
and TO perfect now faulty system of cur
rency
Mr.. Gage was introduced by President Trow
bridge. and spoke in part as follows:
There is too close an intimacy between the gov
nsnt aaneg d ana Sur ne o 4ba a. %
present the injurious effect OF such init
. most propitious time for enactng reasonable re-
forms in the currency and banking laws.
relation between government finances-debt and
tsxation-and the general commercial or industrial
intimacy has been and is injuriously close. Memory
readily recalls those periods when our whole fnan-
rial and industrial progress has been severely
checked while great questions relating TO the con-
dtlon OF me peasury 1I me aI1 @ + Ws lts ny
tVsion the government is legal entity separate
stiOct iTnPersonaI Within its proper sphere of
action II is supreme nut it cannot transcend these
limits without harm 10 itself and injury the peo-
pe In other words. there are laws superior TO the
government laws which IL cannot defy and escape
penalty They are not written laws. but they are
have way Of self-operation. blessing the obedient
and banning the violator. OF these all men and all
governments should be afraid, and 10 their man
dates respect should be shown
Mr. Gage by way of illustration repeated the
substance Of conversation he had had with the
financial minister Of a South American republic.
whose government encouraged banking facilities
BIZ depositing its surplus funds subject to call,
with eight banks. all of which have branches.
These banks are permitted to issue notes 10 circu
late as money limited, however, in amount by their
relations TO capital and by the percentage Of
specie which they required TO carry against
note issues. Asked why his government did not
make the banks secure their notes by pledging
government bonds. thus charging the market for
The government securities, and lowering the rate
Of interest on the public debt the South American
replied
This apparent advantage might prove falacious
n the end. We consider the bank currency en-
tiTely straight 10 the holder IL now is. and to
require what you suggest would involve tie up
Of so much Of the bank capital, all of which, We
Try and trade. We think general industries and
business affairs should be involved 10 the smallest
doubly important that general business should be
protected from rather than exposed TO the per
tur5ationE in government finances when the latter
are under stress and strain. We deposit our Idle
funds among the eight banks and they serve as
important aid 10 industrial activity, while they
are always subject 10 our call when neeoed-
Commenting on the apparent reasonableness Of
the South Americans statement Mr.. Gage said:
On three particulars legal tender paper money,
bank note issues and the keeping of the public
moneys. we pay no regard 10 the opposing argu-
nent Nevertheless, the reasons set forth by that
finance minister for adhering TO a policy radi
cslly al variance with are deserving or
deep consideration. Have we not been guilty OF an
enormous economic waste by reason OF our peculiar
treasury system?
Secretary Gage finished speaking about o'clock.
The convention by a rising vote extended thanks
to Mr. stickney and TO the Secretary of the Treas
ury. The convention then adjourned until to-
morrow.