The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-09

- c,-S III
reform, extension of the scope of the
national banking laws, in the event
or no Immediate general change OF
the monetary system; civil service re.
qiirement; q customs service free from
practical" politics; business like me-
thods in the daily transactions Of the
government and a general abolition of
red tape wherever 1t clogs the wheels
of the governments business, are
among the recommendations contained
in the annual report of Franklin Mac
Veagh, Secretary of the Treasury, pre-
scented to Congress to-day.
The expenses of the government in
the fiscal year 1912. for which this
session Of Congress is asked to ppro-
! PIRATE, are estimated at $630,49 4,O13.12.
The estimated expenditures OF the
Panama Canal are given as s56, $780,
S47.69, making a total of S6S7,414.-
S60.S1. The estimates, IL carried out,
represent net savings of about $1S,-
100000 in the executive departments
as compared with the appropriations
for the current fiscal year.
While the secretary's report esti-
mates the total expenses of govern
ment at s6S7,414, S6o.S1, the estimates
| which have been transmitted to Con-
gress ask for $T4s,414.S61. a difference
of s61,oo0,o00. Congress is asked to
appropriate this extra SCI, 900, 900 to
make the sinking fund law effective.
1t would be an appropriation to permit
the treasury to begin applying 1 per
cent. a yea to the discharge of the
national debt. The law authorizing
such a procedure has been a deal let
ter for some time, as Congress has
never appropriated any money.
Receipts for 1912. Secretary Mac
Vcagh estimates. will be s6S0.0o0 900.
which would leave an ordinary sur
plus of around s5o.oooiooo. If the
treasury should continue to pay for
the Panama Canal out of the cash
drawer as at present, such a surplus
would be turned to a deficit of ST.
414,S60.St.
Secretary M~acVeagh, expresses the
hope that the monetary question will
come into Congress detached from sec
tional or political considerations.
Panic Breeder.
Our system can fairly be called a
panic-breeding SYSTEM he says,
whereas every other great national
banking and currency system Is panic
preventing. AS long as we continue
under our present system we are liable
to panics and the dev%astations of
panlcs reach Republicans and Demo
! la dIid al pdIlS VI ne CoQlLi
alike. Panics are no longer neces-
sary, and no longer respectable. 1t
is for the government to say whether
We shall have panics In the future or
not. 1t is a mere matter of choice.
w nave nc system of reserves: our
banking system destroys them. 1t con-
centrates in New York what are pre-
tended to be reserves, and then forces
the New York banks to lend and
abolish them. Our system. instead OF
building up a reserve. destroys 1t as
fast as 1t i~nclines ITO accumulate"
In connection with his criticism OF
the money system, one of Secretary
MacVeagh's most important recon-
Panama bonds. of which $500. 600, 600
were authorized by the tariff act. The
secretary renews the recommendations
he made last year for legislation to
tax the new bonds at / 1-2 per cent, If
used by national banks for circulation
and intimates, as was announced in
news dispatches, a few days ago., that
1t might be more preferable to issue
the new securities for investment pur-
poses only at a rate of 8 per cent.
AS a check against the use OF the
bonds as the basis for a further In
hation of the national bank currency
he suggests that a circulation tax Of
even 2 per cent. would hive the effect
of making them Improbable for banks
to use fer such a purpose and at the
same time would make them attrae-
tive to investors without injuring the
. per cent. boz DIS, of which more than
500, 600, 900 are outstanding. Another
means of accomplishing the same end.
the secretary suggests, would be for
Congress to authorize an issue of $780,
100000 or 500. 100000 of the bonds at
3 per cent. without the circulation
privilege.
If there is no prospect of immediate
change in the monetary system the
secretary thinks the American ma
tional banking system SHOULD be de-
veloped to perform an International
function. There is a clear need OF
banking facilities in foreign countries.
where there is American commerce. he
says.
1--WE shall never be a full-hedged