The daily morning journal and courier., 1907-12-06
CORTELYOU ASKS POWER OF REMEDY secretary's Report Discusses Action Forced in Times of
 Financial Stress.
GREATER ELASTICITY
 OF CURRENCY NEEDED
Asks Congress to Promptly Provide Plan Automatic in
 it's Action.

Washington, Dec. 5.-The annual report of the Secretary of the Treas- ury is lengthy document full of de- tail. Like the Presidents message it Is too long for publication in full. Secre- tary Cortelyou pleads for power of remedy. He says: There is need of legislation that will give to the Secre- tary of the Treasury such power as will enable him to remedy mistakes made by the importer whose transac. tion is in good faith and who has no intent to evade the law or defraud the revenue.
 Abolish Fee System.
 The fee system of payment of pub lie officials is full of evils that are apparent and recognized. This system Is still in force In great part of the customs service The Congress han already recognized the advisabiiity of paying fixed salaries to officers at some of the principal ports and has passed such legislation. It is recommended that similar Legislation he enacted for all ports. The same idea has recently been adopted by the Congress in anolishing fees heretofore paid to United States consuls and putting them on a salary basis.
 Increase Duty Exemption.
 The advisability of increasing the amount of our duty exemption in the matter of articles acquired abroad now permitted citizens of this country returning from foreign travel is req commended to the serious constdera- ton of the Congress. The present est emption of $100 seems to mo to be an amount too low to meet the case of the average traveller and causes much and unnecessary annoyance and complaint. In rpy judgment this exemption should be increased to s200, which would provide for the personal purchases abroad of the average trav- eler and at the same time not be large enough to work injustice to domestic merchants by permitting articles of great value to be brought in without the payment of duty to compete with and injure their legitimate trade.
 Surety Companies
 Within the past few years there has been a great increase in the num- Der and amount of bonds written for the government by surety companies. It is estimated that the aggregate amount of such bonds written in fa- vor of the government during the last fiscal year approxlmated s400, 900, 900. In some instances companies have written single bonds in an amount greater than their total capital and surplus.
 "On February 1, 1907, my predeces- sor issued regulations fixing limit to the liability which any company might assume as sole surety on any single risk running to the Treasury Department and prescribing the gem eral conditions under which the husi- ness should be conducted Under its operations conditions have improved, but it seems essential, in view of the magnitude of the business and of the interests involved, that an insurance division should be created in this de- pertinent to supervise the general bonding business of the government, and with ample power to examine and investigate the solvency and methods of the various companies doins busi- ness with the government The de- pertinent could by this means better safeguard the interests of the govern.