The Montgomery advertiser., 1909-12-08

ready low market value of the 2 per
 cents. would unduly decline.
 At the same time. Mir. MacVeagh says 1t is desirable 10 complete the legislation respecting the new Pana- ma bonds to make them available so as to begin the settlement of the in- debtedness to the general fund of the | treasury of the Panama Canal. He suggests that if the sale of any of those bonds should produce more cash than the treasury balance needs. some | of the per oents. might be bought in the market for the sinking fund. | thus keeping the market price of the | latter class above par. Declaring I that the government has not, and l never has had a ? per cent. borrow | ing power, MT. Macveagh says 1t possibly would have been better new
 CT to have issued 2 per cent. bonds or | bonds at any rate below the govern l ment's borrowing power in the open market. He says that as basis for circulation they have no elasticity; | that they are practically all held by the banks as a basis of circulation; and that the banks would suffer so
 heavy a loss in an attempt to dis pose of them that the influence of
 the situation Is consequently decided | Iy against the retirement of circula- l tion.
 I The isSudnce or per cent DoHuS | at i 1-2 says Mir MacVeagh, would not change in any way the net in- terest result of its transactions with | the banks. Then again 1t would pro- vide bonds which investors would | want and which would have broad and wholesome market, aiding mate rialiy in increasing the elasticity of | the currency.
 Secretary MacVeagh, discussing the | ra ahub h fat n( pyfn fnA
 in progress as a result of the exten-
 sive frauds discovered at the port of
 New York says:
 ."It is clear that the influence of local politics and politicians upon the
 customs service, has been most dele- terious, and has promoted that laxity and low tone which prepare and fur nish an inviting soil for dishonesty and fraud. Unless the customs ser vice can bc released from the pay
 ment of political debts and exactions. 1t will be impossible to have an hon.
 est service for any length of time" He says that the work of reorgani-
 zation is mot complete. not nearly complete" but predicts that the nec- essary prosecutions being made will
 lead in the end to the establishment
 of an administration of the customs service that is fit for the govern
 ment of great nation"
 While purposely avoiding. as he says, expression of a preference for. any particular plan or system, MT.
 MacVeagh strongly urges, the need of
 retiring pension for aged employees.
 stating that the United states is the only nation that has no general le- gal retiring pension for the employees of its civil service.
 MT. MacVeagh's only reference to the new corporation tax is a para graph designed to clear up the ques- ton as to what form of return would be adopted. He says it must be as- sumed by the department that the
 single purpose of the law was to tax at per cent. the actual net profits of a corporation. as net profits are
 understood, and that the term met
 income" was used that there might be no confusion.
 examination by the office of the Comptroller of the Currency are noted
 in the report but no recommendation
 are made along this line.
 Mir. MacVeagh urges the need of
 contingent fund-probably $f00,000--
 for his department. R
 Touching briefly on the subject Of
 banking and currency reform, Secre-
 tary MacVeagh says: I've must have
 at least the beginning of a perman-
 ent system. At present we have
 neither an adjustable currency nor
 trustworthy surplus reserves two ab-
 solutely essential features of any
 banking system upon which the fi-
 nances and the commerce of this
 great nation can secure rest. To se-
 cure these essentials-to speak of no
 others-the looked for reform must
 deal with Fundamentals"