The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-12-17

legislation respecting the new PAN
ANA 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 two per cents might be
bought in the market for the sinking
fund, thus keeping the market price
of the latter class above par. De-
claring that the government has not,
and never has had, a two per cent
borrowing power, Mr.. MacVeagh
says it possibly would have been bet
ter never to have issued two per
cent bonds or bonds at any rate be-
low the governments borrowing pow
er 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 a loss
in an attempt to dispose of them that
the influence of the situation is con-
sequently decidedly against the re-
tirement of circulation.
The issuance of 8 per cent bonds
at l " says Mr.. McVeagh, would not
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 which would have a broad and
in increasing the elasticity of the cur
rency.
Secretary Macveagh, discussing
the rehabilitation of the customs SER
vice in progress as a result of the ex-
tensive frauds discovered at the port
of New York says:
ut is clear that the influence of
local politics and politicians upon the
customs service has been most dele
terious, and has promoted that lax
ity and low tone which prepare and
furnish an inviting soil for dishon-
esty and fraud. Unless the customs
service can be released from the pay
ment of political debts and e%xactions,
it will be impossible to have an hon.
est service for any length of time"
He says that the work of reor-
g~anization is mot complete nor near
ly complete" but predicts that the
necessary prosecutions being made
will lead in the end to the estab-
lishment of an administration of the
customs service that is fit for the
government Of a great nation"
While purposely avoiding, as he
says, expression of a preference for
any particular plan Or system, MI.
MacVeagh strongly urges the need
of a retiring pension for aged en-
ployes, stating that the United States
is the only nation that has no gen.
eral legal retiring pension for the
employees of it's civil service.
Mr.. 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 say it must be as
sumed by the department that the
single purpose of the law was to tax
at one 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.
The improved conditions in bank
| examination by the Office of the
COIupITOlleT Ol IHe OuIIeuCy are
noted in the report, but no recon-
m%endations are made along this line.
Mr.. McVeagh urges the need of a
contingent fund-probably 100000
for the department.
Touching briefly on the subject of
banking and currency reform, Sec
| rotary MacVeagh says: I'VE INST
have at least the beginning of a per-
manent system. At present we have
neither an adjustable currency nor
trustworthy surplus reserves, two abb
solutely essential features of any
banking system upon which the
finances and commerce of this great
nation can securely rest. To secure
these essentials-to speak of no 9TH
ers-the look-for reform must deal
with fundamentals"