The Detroit times., 1910-12-09
URGES REFORM To
PREVENT PAN|Cs
Secretary of Treasury Submits An
nual Report--Economy Is Also
Feature Of Document.

ury department. which was sent to
congress today.
Che estimated ordinary eXpendl-
lures for next year amount To 5000
I9i.0l3 Including Panama canal eN-
penses -S56 920,S41, which will be re-
paid TO the treasury by the sale OF
bonds-the grand total rs $6S1 A 1850.
the total appropriations Tor this year
wer, S72l,3l3,g00.
The appropriations for the ordinary
expenses OF the government were, FOR
1910, S693.3I3,l66: for 1911. $6S3ijS.-
800 The estimates for the next fiscal
year. beginning July !, are $6SOi9i'
0l3
There are difficulties in the way OF
making an estimate OF next years re-
ceipts. but In the best light available
Secretary MacVeagh places the
amount at $GS0,000,000. These ordin-
airy receipts If realized. will exceed
The ordinary disbursement by $i95oo,-
$50 But taking also into account the
estimates for the Panama canal the
deficit for the next year will be ST.
il4,SG0
Reform OF the currency Is the next
subject considered. Concerning II see
rotary MacVeagh says:
we can stop having panics, exactly
as we prefer II will not cost penny
TO prevent them: and Il has cost MS
untold millions and untold suffering
every time we had one. II Is for the
government to say whether II viii
have panics in the future or whether
IL Will not"
short as the present session is to
be. the secretary saws II would be n
great step forward II the subject or
remedy for existing financial condl
lions could at least arrive AZ some
form of defiuiteness and concentra-
ton before congress adjOurns. II has
received great consideration during
tn, past TWO or three years by econ
omic authorities under the lead Of the
National Monetary Commission. There
should be no need Of further hesita-
ton. he believes. In taking action
The whole financial history OF the
country" according 10 the report, Is
long series of troubles and agitation
and now that we have In sight the
establishment Of a real and perman-
ent banking and currency system that
will be both safe and sane, II makes
. one anxious To- see IL accomplished
AS TO the Weaknesses of the panic
breeding system Secretary Mac
Neagh declares: I'VE have no system
OF reserves. Our banking system de-
stroys our reserves. II concentrates
In New York what are pretended to
be reserves and then forces the New
York banks to lend and abolish them.
We have no way TO increase our
currency when il is needed. except
under the Northumberland law, which
will soon expire ana which Is only
Intended for emergencies. Under our
system ordinary transactions Of bust
ness cannot go forward uninterrupted
IN time OF stress and strain. And
vet the final test of a banking and cur
rency system is that the ordinary
banking facilities needed by business
shall he provided at all times and I'm.
der all circumstances.
The continuing deficit created by
the Panama canal expenditures, the
report says is bringing closer the time
when the indebtedness of the canal TO
The general fund OF the treasury will
have TO be paid al least in part. by a
sale OF some ~ he Panama canal
bords authorized by congress to the
amount OF S290.569 600 These may
be issued at any rate of interest neces-
SdlS up ~ llltt per ttiil IL Niit
bonds are 60 be used as a basis for
bank circulation. the secretary points
out. the tax on the circulation should
be ~ or . per cent IN order TO pro-
tecI the 9 per cent government bonds
now held by the banks. On the other
hand If authority were given to is
sue 100000 600 or 100000 600 pc?
cent bonds without the bank circula-
,.rsvi1opn II would hp 81 hln IN
gauge experlmentally the rate at
which the government could borrow on
an investment basis, and officials
would then be better able to formulate
financial policy for the future
As TO customs the report in part
says. The sugar frauds were found
to cover in one form or another near
ly all the sugar coming into New
York The total recovery of duty
amounted up 10 $4,000 The exis-
tence Of such extraordinary frauds III
volying corporations Of the largest and
most responsible kind has been such
q revelation az 10 throw suspicion over
IN, entire customs field and to oblge
us 10 investigate and overhaul in all
directions"
There is no practical way" Mac
Veagh says. ito put the government
service properly on its feet without
fair and just method OF civil service
retirement Fortunately. this retiring
provision can be made without the eX-
pense of one dollar To the govern
meut"
Congress is asked also TO provide FOR
the retirement OF the field force OF the
life saving service.
When the public expects that there
could be a saving OF $500. 000.o0e a year
I'm the expenses OF the executive de
partments MacVcagh observes il Is
laLOring under misconception that
j. very harmful The entire appro-
rriations for ordinary expenditures
Last wear were only $3.50, 600 900.
lie retails economies adopted In the
treasury and the reorganization OF
The force OF special agents
one way OF saving considerable
money referred to would be the elm
inalion of large number of customs
ports and some of the assay orftces
and minis that perform no service
Whatever and are of no use under
the sun
The report recommends that federal
buildings he OF artistic design.
AS TO postal savings banks the re-
puIt says
The prelimlnaries in the case of