Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-08-05
MORE CURRENCY,
LESS RED TAPE
INK OUT MANY REFORMS IN
TREASURY DEPARTMENT.
BUSINESS METHODS TO RULE
IN ROUTINE OF OFFICES
Planning to Put Into Effect Laws
hitting Currency Associs
Among Banks and Issuance Of y e
Money When Required to 7 act
Business of Country.
Especial Correspond

Especial Correspond
Washington. Aug 5.--Secretary of
the Treasury McVeagh's impatience
with the manner in which the govern
ment business is transacted in the vari-
Gus departments Is soon to be illus
trated by a general house cleaning in
that branch OF the government over
which he has direct supervision. Ever
since he came to Washington as
member of President Taft's cabinet
Secretary MacVeagh has been dissatis-
fed with the quarters provided for
government clerks and the manner In
which they performed their daily tasks
He has already instituted many re-
forms; in some instances necessitating
the discharge OF clerks who were en-
gagged in work entirely unnecessary.
and also in injecting into the treasury
department the methods of an up-to-
date business establishment.
There is a special committee COM
posed of treasury department employees
and assisted by experts temporarily
employed by the government. which is
devotlng itself exclusively to the prob
lem OF simplifying the work in that
department. Now Secretary Macveagh
4
the great granite structure in which his
department is esta blished. His plans
look to better ventilation and an ar
rangement Of the many divisions SO
that less time will be lost in chasing
| about the building. which occupies
about the space to be found in an
average city block. The idea, in short.
Is to make such improvements and
changes as will adjust the building to
the needs OF the department and the
accommodation of the public.
No More Delays.
When Secretary MacVeagh returns
from his summer home in New IIamp-
shire he will find that the department
| Is being operated much after the fash
| ion he would expect to find in opera
| tion in a mercantile establishment. Be
! fore he left Washington he was accus-
| toned to waiting five or ten minutes
for the head OF division with whom
it was necessary for him to be In al
most constant communications Such
state OF affairs Will no longer be toll
Grated. The treasury officials whose
business takes them to the secretarys
offices frequently during the day and
for whom the secretary is apt to call
at any moment. are to be transferred
to quarters close by the new offices
fixed up for the secretary. The entire
department is being arranged along
these lines and the officials in charge
OF the work express the opinion that
the work of the treasury department
will be done more expeditiously than
it has ever been done before.
Currency Associations.
Just at present the treasury depart
ment is vitality interested in the es-
tablishment OF national currency asso-
Citations. There is a feeling OF great
satisfaction that the obstacles in the
way of the formation OF such an asso-
citation in New York have been re-
moved, and 1t Is hoped that this fact
will encourage banking communities In
Pittsburg. Philadelphia Boston. Chi
cago and other great cities to follow
in the footsteps OF New York.
Treasury officials are being called
upon almost daily to state whether the
desire Of the government to organize
these associations, Is indicative of an
effor, to ward off an impending panic.
If there is a panic in the offing these
officials are unable to detect 1t. The
currency associations are being Gre
ated, OF course, for the purpose OF
meeting financial emergencies. The
fact that the organization of such as
sociations is being urged by the treas
ury departm ment does not justify the
belief or suggestion that the country
is confronted with unsound financial
conditions. The chief concern OF the
department is to get this emergency
machinery erected so that 1t can be
set in motion at the proper time. OBJ
viously II the banks and the govern
ment wait until there is n scarcity Of
money and delay action until there are
physical signs of panic 1t will be too
late to form currency associations, In
addition to which the formation OF the
associations at that time would only
tend to precipitate n panic instead OF
warding 1t Off
To Issue New Currency.
Under the terms of the law OF May
30. 1908, authorizing the creation of
currency associations and the issue of
additional currency. national banks oc-
cupying contiguous territory may or
ganize a national association There
must be at least ten rational banks IN
each currency association, and the ag
xregate capital and surplus OF such
national banks must be at least So
600, 900 No national bank may join a
national currency association unless 1t
has an unimpalred capital, and surplus
OF not less than 20 per cent. After the
formation Of an association any ma
tional bank belonging thereto, whose
outstanding circulating notes actually
issued by United States bonds ano unit
TO not less than 40 per cent OF Ats cap
,tal may obtain additional circulating
notes by depndtinE with the associa-
tton In trust for tho United Statos any
securities. including commercial paper.
Addisfonal notes viii only be issued
upon the recomnrenS1ation OF the comp
trolfer OF the currency and the ap-
proyal Of the secretary OF the treasury,