The Topeka state journal., 1901-10-16
Secretary Gage Again Urges Re-
tirement of Greenbacks.
Would Withdraw Backing From
National Bank Notes.
HE TALKS TO BANKERS
Favors Deposits of Surplus Rev
enues in the Banks.
And Their Use in Cancellation
of the Public Debt.

Milwaukee. Oct ia feature of to-
days session of the American Bankers
association, was the address delivered
by Lyman J. Gage, secretary of the
treasury. Mr.. Gage expressed the opln-
ion that there is too close an intimacy
between the governments finance and
our commercial affairs" but he added
that lit is a comfort and satisfaction
to note that at the present moment the
injurious effect of such intimacy ap-
pears to be at a minimum" The speak
er urged that the present is a most
prOpitious time for enacting reasonable
reforms in the currency and banking
laws
In every country said Mr.. Gage,
there is a more or less intimate rela-
tion between government finances
debt and taXatiOn-and the general
commercial or industrial affairs of such
country In our own country that in
tin acy has been and is injurlouSly
close. Memory readily recalls those
periods when our whole financial and
industrial progress has been severely
checked while great questions relating
to the condition of the treasury or the
standard of money have awaited decis-
1on- While under our system the peo-
pie constitute the government, yet in
its organization the government is
legal entity, separate, distinct, 1mper-
sonal Within its proper sphere of ac-
tion it is supreme, but ii cannot trans
cend these limits without harm to itself
AID injury to the people. In other
words. there are laws superior to the
government laws which it cannot defy
and escape penalty. They are not writ
ten laws, but they are discoverab bic,
these higher economic laws which have
a way of self-operatiOn. blessing the
obedient and banning the violator. OF
these all men and all governments
should be afraid, and to their mandates
respect should be shown
Have we not been guilty of an enor-
nous waste by reason of our peculiar
treasury system?
Permit me to summarize into several
brief propositions an expression of my
own financial convictions
First. / believe it to be most desir-
able that the demand liabilities of the
government known as legal tender notes
should be put in the way of retirement
and cancellation.
Second: 1 believe that this can be
accomplished without any burden of in
terest cost to the public treasury.
Third: / believe that our system of
bank note circulation can be and ought
to be so modified as to make it more re-
sponsive to commercial and industrial
requirements. without any increase of
risk to the bill holder.
Fourth: l believe that beyond act
ing a guardian and trustee for the
people in relation to national banks the
issues should cease.
Fifth. 1 believe that the public
moneys in excess of a reasonable work.
ing balance for daily use should be de-
posted in National banks. That sim
pie and safe system of distribution of
funds can be devised 1 haveno doubt.
sixth: believe that in periods of
national peace and prosperity the pub
lie revenue should be somewhat in ex-
cess of public expenditures, and that
the surplus revenue should be applied
to the reduction of the public debt"
After presenting some statistical
facts showing the present strong and
satisfactory condition of the national
finances, Mr.. Gage in conclusion said:
Looked at from the standpoint of
true craftsmanship. it would appear
that the present is the most propitious
hour in all our history, and as favor
able as any period we may hope for in
the future. to enter upon reasonable.
and judicious measures to eliminate all
elements of financial weakness which
experience has brought to light and to
perfect our now faulty system of cur
rency-"