Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-11-10
BACKING COLLECTOR LOEB
Department Behind Him in Efforts
to Reform the Service.
CENTRAL BANK NOT DISCUSSED
Retirement for Aged and Infirm
Government Clerks to Be
Heartily Endorsed.

Secretary MacVeagh's annual report to
Congress will contain as its most i'm
portant feature a discussion of the New
York customs frauds He will make 1t
clear that the Treasury Department is
uhreservedly back of Collector Loeb I'm
his campaign against the rascaIs inside
and outside the government service who
have built up a system by which hun
dreds yearly defraud the government of
millions of dollars and harshly resent any
effort to unloosen them from the grip
they have had.
The central bank question will not fig
ure In the annual report Of the Secretary.
He said he did not propose now to take
up the suggestion for the establishment
Of central bank Of issue. certainly not
In any direct way.
Mr.. MacVeaeh. who was at his desk
today. after an absence of nearly three
months at his sumner home, in Dublin.
y. H.. and after long conference I'm
New York few days ago with Collector
Loeb and attorneys representing the De-
partment of Justice, who intend to bring
many prosecutions, admitted that the de-
partment is cooperating with Mr.. Loeb,
and, more than that expects him to
continue the course he has begun.
1uoTOuSn dOuSecleaU1nR.
Mr.. MacVeagh did not care to give
details Of the conference or the probable
outcome of his instructions to Mr.. Loeb.
He is In hearty accord with the purpose
TO prosecute government officials. i'm
porters or anybody else who can he
shown TO have been engaged in robbins
.he government At the same time he
thinks that prosecution is a mere incident
10 the rehabilitation and REORGANIZATION
OF the customs service In New York and
elsewhere so that repetition of the frauds
may pe prevented in the future. He sur
misses tnat the government is hot enough
aIter the guilty now to prevent much Of
the thleving going on at this time b,,f
ne Is anxious that the whole system bv
Mhlcn inspectors. importers and exporters
co-operated to defraud the government
shall be rooted out and a new one. With
innesty as It's basis. substituted
Mr- MacVeagh. as heretofore stated in
"e Star. Wit go over the whole New
aar,Tas, s'uatlon with President Taft at the
oouot that the President will heartiiv
sanction the housecleaning that is eoin1
on In the customs service 'e
Not Confined to New York.
Most Of the dirty work so far discover-
ed mas oeen at the port OF New York
where two.thirds Of the imports for this
i| 'OAhe III, out tne treasury Is not
cohhning Its Investigations alone to New
YORK Every port will be put through a
searching investigation, to ascertain n
the same system SO long employed by ra s.
calls at New York IL in operation or has
been in operation elsewhere
Secretary MacVeagh's annual MESA re
TO Congress will also heartily indorse the
general proposition Of retirement for
aged and infirm clerks Of the government.
and the Secretary will speak in high
terms of the loyalty and long and faith
Iui service or the superannuated clerks.
Dilemma Over Bonds.
NJ. MacVeagh has taken no steps TO try
u hold up the prices OF government
bonds. especially the 2 per cent conso,s
and Panama canal issues He is in a
Tlandary as to how or what he may be
able to do in this respect. The prices OF
Panama per cent bonds have fallen
below par, and the per cent consols are
quoted at little above par. The tendency
III both classes OF bonds is to still fur
ther sag
Mr.. MacVeagh has given nothing more
tlan passing consideration to sugge stions
'"i reducing the size OF paper money in
circulation in this country and OF clean
ing X by washing instead of reissuing. as
al present. Mr.. MacVeagh doubts wheth-
er ne VIII be able for many months to
Glve The matter serious Consideration
Inc plan mas been proposed as one of
economy In the saving OF the paper upon
which money is printed.