Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-12-08

> dtihhit dttd 10 Di'Fiut AH hHFH 81
nual rise or fall by some flexible fac
tors In our annual taxation"
deductions IN the present estimates
MIR. MacVeagh declares, result fror
improved handling OF the government
work and the postponement Of ex
p%endltures which can be delayed in al
effort TO adjust immediate expense
and receipts, He sounds a warning
however. that tho reductions in ap-
preparations viii be Disappointing un.
less equal attention is given to Other
important savings.
Secretary MacNcagh reviews the or.
eanizatlon. or rather lack Of organi-
%zation. OF the fiscal responsibilities OF
the executive and legislative branches
Of the government and the reorgani-
zation thereof now in progress. lie
voices the hope that there VIII be-
constant progress away from the ex-
treme Reorganization Of the past
and observes hat even ~ our n
trY Is rich II cannot afford 10 be
wholly u%nscientihc in lis apprQpria-
tons
Probably the most important rec
ommondation made By the secretary
is that the tax on bank circulation Sc
cured by United States bonds here
after deposited bearing interest higher
than 2 per cent, shall be increased in
exact proportion 70 the Increase in the
rate of interest above two per cent.
He advises continuance Of the rate OF
one-hHlf of one per cent FOR circula-
lion based on two per cent bonds. Mr..
MaeVenPh says that if the Panam
huuIa IA tthapfyHJ hNr tho In tg 2f AfgpIYat
.. 1909. should be issued at three
per cent. they would have a much
better circulation privilege than the
outstanding we per cents, the tax be-
ing only one per cent Mr.. MacVeaRh
would make the tax on them one and
per cent; otherwise the al
ready low market value Of the two
per cents would unduly decline.
AZ the same time, Mr.. MacVeagh
II Is desirable to complete the
legislation respecting the new Panama
bonds 10 make them available go as
to begin the settlement Of the indebt-
cdness to the general fund Of the
treasury OF the Panama canal. He
suggests that If the sale OF any Of
bonds should produce more cash
Than tho treasury balance needs, some
lf the Two per cents might be bought
In the mArket for the sinking fund.
keeping the market price OF the
after class above par. Declaring that
he government has not. and never
has had, II two per cent borrowing
power, Mr.. MacVeagh says IL possibly
would have been better never TO have
two per cent bonds or bonds at
rate below the governments Dor
power In the open market, lie
iays that as a basis for circulation
hey have no elasticity; that they are
practically all held by the banks as
basis of circulation, and that the
,anks would suffer go heavy a loss In
N attempt to dispose Of them that
he influence Of the situation Is con-
equently decidedly against the retire
nent Of circulation.
The issuance OF Q per cent bonds at
mo ana one-half. say Mr.. MacVeaGh. /
would not change in any way the net
interest result Of It's transaction with
he banks. Then again, II would pro-
ide bonds which investors would
want ana which would have a broad
nd wholesome market aiding materi-
iN NV fAHiik Ah' ttNNAlAAAN VI tlif |.
urrency
Secretary MaeNeaRh, discussing the
ehabilitatiun of the customs service
n progress as a result of the extern
i've frauds discovered at the port of I
Few York, says:
1T * clear hat the influence of
)cnl politics aud politicians upon the
sdrviee has beer most delo-
ana has promoted hat laxity
low tone which prepare and fur
ish an inviting soil Tor dishonesty
fraud, Unless the customs ser
lee ear be released from the payment
political debts ana cXactions. II viii
q impossible TO have an honest ser
Ice for any length of time"
lie says that the work Of r|porganiz-
tion is not complete o nearly =
omplctc,' but predicts that the nee
>sury prosecutions being made "Will
iu the n to- the establishment
E IAN administration of the customs
that rs iit for the government
{ q great nation"
While purposely avoiding. us he
iys, expression of a preference for
ny particular plan or system, Mr.
iacNeagh strongly urges the need Of
retiring pension Tor aged employees.
that the United states Is the i,
My nation that has no general legal /,
pension for the employees OF :,
s. civil service. ia
Mr. M~acNeaRh's only reference to "
new corporation tax Is a. para
designed to clear up the uucs- /,
as to what form uf return would !,
b adopted. He SAYS il must he as- \
imed hy the department that the %
ngle purpose al the law was To tax {,
u uer cent the actual net profits %
q corporation. as net profits are =
Understood. ANA that the term. met .
.rome.' WAS used that there might be +.
, confusion n
The improved conditions IN bank y
animation ly the Office of the comp
olltr of the currency are noted in o
Ic report hut uo recommendations 4
e. made along this line. is
Air MacN,aah urges the need of "a
.ntingent fund-prohahiy xt00. ooU- Il
r his department =
Touching briefly ou the subject OF 4
and currency reform. Score G.
~ MacNcaEh SAYS W must have al
least the beginning 90 Il pormun- ic
Il system. Al present we have u
ither am adjustable currency nor ~
- a. So