The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1909-12-08

S,480 towns VIII be reached In this
campaign.
Organization Of the past" and observes
that even If our country is rich 1t
cannot afford to be wholly unscientifc
in its appropriations"
| Probably the most important recon-
mendation made by the secretary is
that the tax on bank circulation secur-
ed by United States bonds hereafter
deposited bearing interest higher than
two per cent, shall be increased in err
act proportion to the increase in the
rate of interest above per cent. He
advises continuance of the rate Of one
half of ono per cent circulation based
on per cent bonds. Mr.. MacVeagh
says that IL the Panama bonds author
ICED by the law Ct Aug. 5, 1909, should
be issued at per cent, they would
have much better circulation priv
ilege than the outstanding per cents,
the tax being only per cent. Mr.. Mac
yeag would make the tax on them
1h per cent; otherwise the already
low market value Of the Q per cents
would unduely decline
At the same tir.1e Mr.. MacVeagh says
1t is desirable to complete the legisla-
ton respecting the new Panama bonds
to make them available so as to begin
the settlement of the indebtedness 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 cents
might be bought in the market for the
sinking fund, thus keeping the market
price of the latter class above par.
Declaring that the government has not.
and nBUsF has had a Q per cent bor-
rowing power, Mr.. MacVeagh says it
possibly would have been better never
to have issued per cent bond or
bonds at any rate below the govern
ments borrowing power in the open
market He says that as a 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 loss in an attempt to dispose
of them that the influence of the stu |
alton is consequently decidedly against /
theretirement of circulation.
The issuance of 8 per cent bonds at |
IL says Mr. MaeVeagh, would net
change in any way the net interest |
result of its transactions with the |
banks. Then again it would provide |
bonds which investors would want and /
hich would have a broad and hole
some market aiding materially in in
creasing the elasticity of the currency
Secretary MacVeagh, discussing the
of the customs service
Al
frauds discovered at the port of New
York says;
TT is clear that the influence of local
politics and politicians upon the Gus
toms service, has been most deleterious,
and has promoted that laxity and low
tone which prepare and furnish an in
viting soil for dishonesty and fraud
Unless the customs service can be re-
leased from the payment of political
Of the customs service
debts and exactions It win be impos-
sible to have an honest service for
any length of time"
He says that the work of reorganiza-
ton is mot complete, not nearly COM
plete," but predicts that the necessary
being made win lead in
the end to the establishment of an adj
that is fit for the government of
great nation"
While purposely avoiding. as he says,
expression of preference for any par
ocular plan or system, MIR. Macveagh /
strongly urges the need of a retiring
pension for aged employees, stating
that the United States is the only ma
ton that has no general legal retiring
pension for the employees of its civil
service.
Mr.. Macveagh's only reference to the
new corporation tax is a paragraph
designed to clear up the question as
to what form of return would be adopt
ed. He says 1t must be assumed by
the department that the single pur-
pose OF he law was to tax at / per
cent the actual net profits of a corpora
ton, as net profits are understood, and
that the tenn "no income was used
that there might be no confusion.
The improved conditions in bank ex~
by the office of the comp
.rollor Of the currency are noted i'm
The report but no recommendations
are made along this line.
Mr.. MacVeagh urges the need of al
contingent. fund--probably 100000
or his department.
Touching briefly on the subject of
banking and currency reform, Secre-
airy MacVeagll says: We must have
Il least the beginning of q permanent
system. At present we have neither
IN adjustable currency nor trustworthy
surplus reserves, two absolutely es-
'ential features Of any banking sys- !
EN- upon which the finances and the
commerce Of this great nation can SEE
'ure rest. TO secure these essentials !
q speak Of no others the looked for ,
orm must deal with fundamentals.
!
This II Worth Remembering.