New-York tribune., 1909-12-09
rHr TRE4SrRr REPoRT

III AA@-4AA - q III 'aa
The most striking part of the report
OF Secretary MacNesgh L. that devoted
70 the Custom House frauds at this
port The language employed promises
ACKNOWLEDGING reform. 1T j. clear"
Mr. MacNeagh writes. that the infiu
.'ence of local politics and politicians
''upon the customs service has been
mostly deleterious and has promoted
that laXity and low tone which pre-
pare and furnish an inviting soil for
dishonesty and frasd." Unless the ser
vice can be- freed from the necessity 4
paying political debts, the Secretary de-
clares. IL viii be impossible 10 have IL
honest And ne remarks with exceed
in= sharpness: Amy considerable share
"of the cost Of this demora iZation 90
1.-THE public revenues 10 the efficiency Of
the service aud 10 public and private
''morality j. a, tremendous amount 10
pay IN - liquidation of the small
"debts Of political leaders
No sharper Indictment of the evils ~
politics in the public service couid be
drawn. Mr. MacVeagh speaks for IN
administration that is laying greater
cmphasis ON economy than any national
administration in many years has laid,
and he deyotes large part of his re-
port 10 this subject. alludins - the
beneficial effect upon nunicipal and
state sdministrat lions as among the ad-
vantages 10 be obtained from an eX-
ample Of wise and judicious saving by
the federal government His indignant
words about the cost of payinS petty
political debts by public appointments
indicate one way in which economy and
efficiency VIII he sought 4 high stand
ard Of appointments will be set by the
administration and will raise the tone
Of the public service.
Unlike most recent secretaries 0f the
Treasury. Mr.. MscNcagb does not feel
II incumbent upon him 70 discuss the
subject of currency and banking reform.
because the initiative In that matter IS
committed n the Monetary Commission.
But he expresses tho hope that neither
political parrissnship nor special inter-
est nor pride Of opinion VIII be al
lowed 10 ohstrucr q purely economic
reform Of such great significance %
''the nation in both is national and
international relations Regarding
present defects. he contents himself with
remsrkinc that we have neither an adj
unstable currencv nor Trustworthy sur
plus reserves
The reason for the former defect lies
in The requirement Of bond security for
hanknotes. and further bond issues and
their relation 70 the currency are one Of
the grave problems now before the
Tres sury Department Cp0n This sub
ject the Secretary expresses regret that
the 20 arnment ever issued bonds bear
iES a rate Of interest below the govern
ment's borrowing power ia The general
market That mistaken policy Is Pa
sponsible for the embarra ssment pre-
sented by the outstanding mass ~
per cent bonds. which maintain their
price only at the cost of The continuan .
of q had currency system and IN creates
a difficulty now that tho government Is
forced 10 a higher rate on us borrow
inCs
A 10 tho change of rate provided for
in the new Panama issues. Nr Nac-
Neach suggests that the tax ou circula-
tion based on these coming Ter cent
issues he made ~ per cent 80 as 10
take away any advantage they might
have for note issue purposes over the
: PeE cent issues taxed L per cent. A.
investments for hanks IN. TWO would
thus he equaIized Only 10 The general
investing public would The . per GEMS
have any advantage over the outsland-
inS issues. And we suppose that il -
the hope ~ The Secretary To- md mar
ket for the Panamas among the people
rather than among the banks for "a
financier with his ideas II the faults of
bond secured currency cannot look with
favor upon an increase in This Kind ~
currency Just - the nation Is ou fhe
threshold of financial reform His plan
seems 70 us sound, though we should
Ike 20 have seen the Panama bonds
made by law unavailable FOR circulation
purposes. Al any rate their issue under
the present law. which would create a
special demand for them among banks
for purposes of circulation. would be
a great mistake