The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1909-12-09
INA TONS EXPENSES
Will BE CUT DOWN

bonds to make them available So a
to begin the settlement of the in
debtedness to tho general fund OF tn,
treasury OF the Panama canal. H,
suggests that 10 the sale Of any o
those bonds should produce NOR,
cash than the treasury balance needs
some Of the two per cents might b,
bought in the market for the sinking
fund, thus keeping the market pric,
of the latter class above par. De.
claring that the government has not
and never has had, two per cen
borrowing power. Mr.. Macveagh say,
1t possibly would have been bette,
never to have issued two per cen
bonds or bonds at any rate below tn,
governments borrowing power In tn,
open market He says that as a basi,
for circulation they have no elastici.
ty; that they sie practically all held
by the banks as basis of circulation;
and that the banks would ,sufrer sc
heavy loss in an attempt to dispose
OF them that the influence OF the sit.
uation is consequently decidedly
against the retirement of circulation.
The issuance of 3 per cent. bonds
bonds which investors would want
and which would have broad and
wholesome market aiding materially
in increasing the elasticity OF the cur-
rency.
I, secrntary Macvcagh, declaring the
rehabilitation Of the customs service
In progress as result OF the extern
-slye frauds discovered at;;the port of
New York says:
lit is clear that the influence OF
local politics and politicians upon the
.customs service. has been most delete
rious. 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 be released from the pay
ment OF political debts and exactions,
~ will be impossible to have an hon
est service for any lengthsof time,
. lie says that the work Of reorganl-
zation is mot complete, not nearly
complete" but predicts that the nee
essary prosecutions being made will
lead in the end to the establishment
II an administration OF the customs
service that is fit for the government
OF great nation.
While purposely avoiding, as he
says, expression of a preference for
my particular plan orfssystem. MIR.
Macyeagh strongly urges the need of
a retiring pension for aged employees,
stating that the United States is the
only nation that has no general legal
retiring pension for the employees OF
It's civil service. g
Mr.. MacVeagh's only reference to
the new corporation tax is a, para
graph designed to clear up the sques-
ton as to what form OF return would
loe adopted He says IT must be as
ssumed by the department that the
single purpose Of the law to tax at
one per cent the actual net profits of
corporation, as net profits is I'M
derstood, and that the term met in
come" was used that there might be
no confusion.
The improved conditions in bank
examination by. the Office Iof the
Comptroller ofathe Currency are not
ed in the report but no recommen-
dations are made along this line.
Mr.. Macveagh urges the need of a
contingent fund-probably 500, 900
for his department.
Touching briefly on the subject of
banking and currency reform, ses-
rotary. Macveagh says: I'VE must
have at least the beginning Of per-
nianent system. At present we have
neither an adjustable currency nor
trustworthy surplus reserves. two abs
solutels essential features of any
banking system upon which the
finances and the. commerce of this
great nation can, secure rest * TO se-
cure these essenttaIs4A to speak of no
others-the looked-for reform must
deal with fundamentals."
D. In Hra