Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-12-09
Wants Monetary Question Detached
from Sectional Consideration.
FUTURE MERE MATTER OF CHOICE
Government Must Make Decision as to
the Future.
BANKING LAWS NEED REVISION
Customs Service should ne Freed
from Practical Politics and Pay
ment of Duties by Checks
Authorized.


form, extension OF the scope Of the ma
tionhl banking laws, IN the event OF no
immediate general change OF the none
tary system; civil service retirement
customs service free from ''pracucsf' pol
itcs; business-llke methods In the daily
transactions OF the government and gen
eral abolition OF red tape wherever II
clogs the wheels Of the governments bus
mess, are among the recommendations
contained in the annual report Of Frank
IN MacVeash, secretary OF the treasury
presented 10 congress today.
The expenses OF the government in the
fiscal year 1912, for which this session Of
congress 10 asked 20 appropriate, are es-
timated at $3.50 i94Ot312 The estimated
expenditures on the Panama canal are
given as S56,92O s4769. making a total OF
fisI414. .s6OS. The estimates. II carried
out represent net savings Of about SIS
10000 IN the executive departments an
compared with the appropriations for the
current fiscal year.
While the secretary's report estimates
the total expenses Of government at $751;
n4s6O the estimates which have been
transmitted 10 congress ask for E4s,4l4s6l.
a difference OF Ss1 10000. Congress is asked
70 appropriate this extra S6l 100000 to make
the sinking fund law effective. II would be
an appropriation to permit the treasury to
begin applying 1 per cent year to the
discharge OF the national debt The law
authorizing such a procedure has been a
dead letter for some time, as congress has
never appropriated any money.
Receipts for Next Year.
Receipts for 1912 Secretary MacVeagh
estimates, will be S6sOOOO,OoO, which would.
leave an ordinary surplus Of around 90
OOOO0O II the treasury should continue to
nay for the Panama canal out OF the cash
drawer. as at present such a surplus
would be turned TO a deficit Of FhA-
s6Oa.
Secretary Macveagh expresses the hope
that the nonetary question viii come into
congress detached from sectional or po-
litical consideration.
''our system can fairly be called panic
breeding system" he says, whereas every
other great national banking and currency
system is panic-preventng. As long a. we
continue under our present system we are
liable TO panlcs. and the devastatiouB OF
panics reach republicans and democrats
and all parts Of the country alike. Panics
are no longer necessary and no longer re-
spectacle II Is for the government TO say
whether we shall have panics in the fu-
ture or not. II Is a mere matter OF choice.
I'VE have no system OF reserves; our
banking system destroys them. 1t eoncen-
tratss In New York what are pretended to
be reserves and then forces the New York
banks TO lend and abolish them. Our sys-
tenn instead OF building up a reserve. de-
stroys it as fast as It inclines 70 accumu-
late"
In connection with his criticism OF the
money system one OF Secretary Mac
Veagh's most important recommendations
concerns future issues OF Panama bonds.
Of which $4,000 900 were authorized by the
tariff act. The secretary renews the rec
concentrations he made last year for leg
islation 10 tax the new bonds at III per
cent n used by national banks for eircuia-
ton and intimates, as was announced IN
news dispatches few days ago, that II
might be more preferable TO issues the new
securities for investment purposes only At
a rate OF per cent
Tax on Bank Notes sUEEested.
As a check against the use OF the bonds
as the basis for a further initiation Of the
national bank currency, he suggests that
4 circulation tax OF even per cent would
have the effect OF making them unproht-
able for hanks 20 for such purpose
and az the same time would make them
attractive 70 investors without iniuring the
Oo. 90 are outstanding. Another means OF
accommodating the same end. the secretary
suggests. would be for congress 10 author
ize an issue OF S5OOO0oo0 or noo.0ooo0o Of
the bonds al 8 per cent. without the circu
lation privilege.
II there a. no prospect OF immediate
change In the monetary system the secre
tary thinks the American national bank
ing system should be developed to per
form an international function. There 4
a clear need OF banking facilities In for
eiEn countries where there Is America
commerce. ne says.
we shall never be a ful-fedged com
mercial nation" he SAYS. unless we hav
merchant ships OF our own and foreig
banks OF our own. We should have bank
Al an ports that are important 10 our com
merce."
The treasury's relations with the busi
ness communities are unbusinesslike. art
fetal and burdensome. the secretary de
clares. and he recommends legislation
permit the payment Of revenue to th
government by certified check guardin
the government against loss.
The recommendation that the treasur
be authorised to issue gold certincat'
against sold bullion and foreign gold col
Is renewed.
ProsecutioB of Frauds.
Beviewing the discovery OF frauds an
the subsequent reorganization Of the Gu
toms service. Secretary MacVeagh urge
appropriauons Tor rewards 20 those vi
aid the government. The rehabilitation
the customs service az New YORK h'
been marked he SAYS, hy a decided eliu
tuation 0f spoils Influences and practic
politics.
"American travellers are more and mo
realizing the indefensiblensss OF smu
eIfng. It's rank dishonesty and It's Tad e
ample and influence" says the report
Recommending a study Of the elassih
system OF employees. the secretary d