New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-08


Neagh says that Z. the Panama bands au-
ihorized by the law OF August g. 1909 should
De issued a. per cent they would have
much better circulation privilege than
the outstanding = per cents the tax being
only per cent Mr. MacVeagh would make
the tax on them liz per cent: otherwise
the already low market value Of the per
cents would unduly decline
At the same time the Secretary believes
Il Is desirable TO complete the legislation
respecting the new Panama bonds TO make
them available TO begin the settle
ment 81 the Indebtedness to the general
fund o. the treasury Of the Panama Canal
He suggests tina: IL he sale 90 any OF
these bonds should produce more cash
than the Treasury balance needs. some Of
the per cents might be bought I'm the
market for the sinking fund. thus keeping
the market price Of the latter class above
rar. Declaring that the government has
not. and never has had. ? per cent Dor
rowing power. Mr.. MacNeagh says II pos
sibly would have been better never to have
issued per cent bonds or bonds al any
rate below the governments borrowing
power in the open market. lie says that
basis for circulation they have no
elasticity; that they practically all held
= by the banks basis OF circulation, and
/ that the banks would suffer heavy a loss
in an attempt TO dispose OF them that the
! influence Of the situation is consequently
! decidedly against the retirement of circula-
ton.
The issuance OF per cent bonds at IA
says Mr. MscNeagh. would not change in
any way the net interest result OF its trans
actions with the banks. Then. again. il
would provide bonds which investors would
want and which would have broad and
J -h.,1a
oreasIng the elasticity of the currency
FOR RETIRING PENSION.
While purposely avoiding. as he says. ex-
preston Of a preference for any particular
! plan or system, Mr.. MacVeagh strongly
urges the need of a retiring pension for
/ aged employees. stating that the United
/ States is the only nation that has no gen
ersl legal retiring pension for the employees
( OF its civil service.
Mr.. MscVeagh'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 adopted. He says il must
be assumed by the department that the sin
Gle purpose OF the law was TO tax ! per
cent the actual net profits OF a corporation.
net profits are understood. and that the
term met income" was used that there
might be no confusion.
The improved conditions in bank exami-
nation by the Office of the Controller OF the
! Currency are noted in the report but no
recommendations are made along this line
Mr.. MacVeagh urges the need of con-
tingent fund-probably 500 0co-for his de
partment.
CUSTOMS REFORM
Regarding reforms in the customs ser
/ vice, he says:
The alarming revelations Of the condition
! OF the customs service at the port Of New
I York, which resulted from investigations
/ started during the last administration, con-
I fronted the Treasury Department in
/ March last with the necessity for still fur
| Their investigation and for a general over
I hauling and rehabilitation of the service
al that port. and for a general inquiry into
/ the condition OF the customs service a
/ whole The revelations of the sugar Gus
I toms frauds OF the American Sugar Re
/ filming Company showed long continuing
/ years this system had been thoroughly or
ganized. involving one of the largest cor
I pOrations of the country, and necessarily
considerable number Of men I'm the gov
I eminent service
4 been SO intrenched that over s2,lG0Ooo has
I been paid TO the government since March
An instance Of organized corruption OF d.
Z mansions like these could not be treated
as an isolated case. Since this case was
1 port a widespread Generalization. The
, Treasury Department therefore OF neces-
. sity has given great attention to uncover
ing the actual conditions at New York TO
/ bringing 10 punishment offenders who can
! he reached, and especially 10 reforming and
/ rehabiitating the service and putting il
/ upon basis OF decency. honesty and eff
/ cheney.
able time for undertaking this important
] reform. The revelations made and proven
We're startling and impressive that OPP
!. position silenced: and in this silence
4 the necessary, clearcut measures could be
carried out without meeting serious OBJ
I structions.
/ 1t soon develored that the frauds OF the
American Sugar Refining Company, while
/ perhaps the most important instances We're
T had been apprehended. symptoms Of a
diseased condition, not universal by any
/ means. but almost general And difficult
the facts Of such a condition 10 afford a
basis for rehs Utilization. this has been al
ready largely accomplished. Much has been
/ discovered 20 afford an understanding OF
I the situation, with the result of numerous
/ seizures, Of numerous prosecutions MADE
or projected. and Of important and success
I ful beginnings of a complete rehabthtau IN
I While the recovery of evaded duties and
the prosecution of individuals have been or
/ government Of these disgraceful conditions
is the knowledge and the light which guar
antee In time a wholesome reorganization
INFLUENCE OF POLITICS.
The influence OF local politics and poll
, iicians upon the customs service, he be
lieVes, promoted that laNity ana 10" Tone
/ which prepare and furnish an inviting soil
for dishonesty and fraud" Unless the Gus
/ toms service can be released from the pay-
ment Of political debts and exactions,' he
adds. and from meeting the supposed ex-
igencies OF political organizations, big and
little. il will be impossible TO have an non
est service for any length of time lie
then adds:
ANY considerable share Of the present
] cost of this demora liZstion 10 the pubic
/ revenues to the efficiency ~ the service
and to public and private morality IS
/ tremendous amount 90 pay In mere liqulda-
! ton OF the small debts of political leaders
/ II is also clear that the widespread iis-
! position Of returning American travellers
! 10 evade the payment of legal duties has
/ greatly helped 20 create the COndluons
! which have become intolerable- Those
/ Americans who travel abroad belong 20
! the sections Of the people which most
/ most responsible for IL: and the fact that
/ In so many instances these travellers are
! willing 10 defraud the government out OF
/ qonsidera BILE or even small sums creates
al atmosphere on the docks that strongly
tends 10 affect the morale Of the entire
] customs service. And when TO this is
Z added the frequent willingness upon the
! part OF these responsible citizens 10 spe-
I officially corrupt the governments men,
] then the decentralization is further accent
I uated.
Stil another explanation of tho inhu-
I ences which through a series OF years