The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1910-12-16
URGES REFORM PLAN
MaevEAGh SAYS RED TAPE MUST
BE CUT WHERE 1T CLOGS
GovERNMENr BUSINESS.
ASKS FOR S687,4l4,86O.81
Annual Report Ridieuies Assertion
That Country Could Save 100000
600 Year-8ank System. He Says,
Is Breeder Of Panics.

Washington. Dec. 9.-Currency re-
form. extension of the scope OF the
national banking laws. II there are no
immediate general changes In the
monetary system: civil service retire
ments; customs service free from
practical politics: business-like meth
DDS In the daily transactions OF the
government and abolition OF red tape
wherever II clogs the wheels of the
governments business are among the
recommendations In the annual report
NJ Franklin MacVeagh. secretary OF
the treasury. presented TO congress.
Expenses OF government In the fs-
cal year 1912. for which this session
OF congress Is asked TO appropriate.
are estimated at $3.50. 4e4 .0l3.12 The
estimated expenditures OF the Panama
canal are given as 5000. S4769.
making a total OF 1857. AZ. se0.s1. The
estimates represent net savings OF
partments. compared with the APP
propriations for the current fiscal year
Secretary Macveagh expresses the
hope that the monetary question will
come into congress detached from sec
tional or political considerations.
Calls II Panic reeder.
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 la
Bile 10 panics. and the devastations OF
panics reach Republicans and Demo
Gratis. and all parts OF the country
sl,ks Panics are no longer necessary
and no longer respectable II is for
the government TO say whether we
shall have them I'm the future II is a
mere matter OF choice.
We have no system OF reserves:
our banking system destroys them. II
concentrates in New York what are
pretended to be reserves and then
forces the New York banks to lend
and abolish them. Our system. in
stead OF building up a reserve. de-
stroys II as fast as II lnclines to &C
emulate"
In connection with his criticism OF
the money system. one OF the secre-
tary's most important recommended
tions concerns future issues OF Pan
anna bonds. OF which 1920. 900 600
we're authorized by the tariff act The
secretary renews the recommenda.
tione he made last wear for Legislation
to tax the new bonds at TX per cent
II used by national banks for circula-
ton and intimates. as announced In
news dispatches a few days ago. that
II might be preferable to issue the new
securities for investment purposes
only at a rate OF 3 per cent.
Favors q Circulation Tax.
AS a check against the use OF the
bonds as the basis for a further infa-
ton OF the national-bank currency
Mr. Macveagh suggests that a circula.
ton tax Of even per cent would have
the effect of making them unprofit.
able for banks to use for such a pur.
pose and at the same time would
make them attractive TO investors
without injuring the per cent bonds.
OF which more than 100000. 900 are
outstanding. Another means OF &C
complishing the same end, the secre-
tary suggests. would be for congress
70 authorize an issue OF $4,000, 900
or 100000 900 OF the bonds at 3 per
cent. without the circulation provision.