Perth Amboy evening news., 1910-12-09
GAN PREVENT
PAnICS HERE
of Secretary oil
Treasury Tells How.
.oial bu United Press vic.

Special By United Press Wire.
Washington, Dec, ECONOMY
that beats all records is the keynote
of the annual report of Secretary
Franklin MacYeagh, of the Treasury
Department, which was sent to Con-
gress today.
The estimated ordinary expendi-
lures for next year amount to $780,
494,O13. Including Panama Canal
expenses, $56,920,847, which will be
repaid to the Treasury by the sale
of bonds,-the grand total is $751;
414,S60. The total appropriations
for this rear were s721,313,9O0.
The appropriations for the .ordi-
nary expenses of the government
were, for 1910, s693.313,166; for
1911, $6S3,458,900. The estimates
for the next fiscal year, beginning
July l, are $630,494,013.
There are difficulties in the way
of making an estimate of next years
receipts but in the best light avail
able Secretary MacVeagh places the
amount at s6S0,000,0 900. These or
binary receipts II realized, will ex-
coed the ordinary disbursement by
S4~9,505,986. But taking also into
account the estimates for the Pam
anna Canal, the deficit for the next
year will be $7,414,860.
Reform Of the currency is the next
subject considered. Concerning 1t
Secretary MacVeagh says:
1--WE can continue to have panics
or We can stop having panics, ex-
actly as We prefer. 1t will not cost
a penny to prevent them; and 1t has
cost us untold millions and untold
suffering every time We had one. 1t
is for the government t. say wheth-
er it will have panics in the future
or whether it will not"
Short as the present session is to
be, the Secretary says, 1t would be a
great step forward If the subject of
q remedy for existing financial con-
ditions could at least arrive at some
form of definiteness and ~concentra-
ton before Congress %adjourns. 1t
has received great consideration
during the past two or three years
by economic authorities under the
lead OF the National Monetary Com
mission. There should be no need
of further hesitation, he believes, in
taking action.
THE whole financial history of
the country" according to the re-
port, sis a long series of troubles
and agitation, and now that we have
In sight the establishment of a real
and permanent banking and cur
rency system, that will be both safe
and sane, 1t makes one impatient to
see it accomplished"
AS to the weaknesses of the
"panic breaking SYSTEM" Secretary
MasVeagh declares: 1--WE have no
system of reserves. Our banking
system destroys our reserves. 1t
concentrates In New York what are
pretended to be reserves and then
forces the New York banks to Ind
and abolish theyn.
I'VE have no way to increase our
currency when 1t Is needed. except
under the Aldrich-Vreeland law,
which will soon expire and which is
only intended for emergencies. I'm
der our system ordinary transac-
tions of business cannot go forward
uninterrupted in a time of stress and
strain. And yet the final test of a
banking and currency system is that
the ordinary banking facilities need
ed by business shall be provided at
all times and under all circum-
stances"
The continuing deficit created by
the Panama Canal expenditures, the
report SAWS, is bringing closer the
time when the indebtedness of the
canal to the general fund OF the
Treasury viii have to be paid, at
least In part, by o sale o. some of
the Panama Canal bonds authorized
by Congress to the amount Of $780,
SOS, 900. These may be issued at
any rate Of interest necessary up to
three per cent. If the bonds are to
be used as a basis for bank circu-
lation, the Secretary points out, the
tax on the circulation should be 1 "
or two per cent. in order to protect
the two per cent. government bonds
now held oy the banks. On the 9TH
er hand, If authority yer given to
issue S50,000,000 or 100000 600
three per cent. bonds without the
bank circulation privilege, 1t would
be possible to gauge experimentally
the rate at which the government
could borrow on an investment ba-
SloJ anu oLiCiiiS "OU44 IhCh 10 utl-
ter able to formulate a financial poll
icy for the future.
AS to customs, the report In part
says: 1.-THE sugar frauds were found
to cover in one form OF. another
nearly all the sugar coming into
New York. The total recovery of
duty aomunted up TO s3,400,000.
The existence of such extraordinary
frauds involving corDorations of the
largest and most responsible kind
has been such a revelation as to
throw suspicion over the entire cus-
toms field and to oblige us to inves-
tigate and overhaul in all direc-
tions.
ut became necessary from the
outset to correct the palpable vices
of the system controlling importa-
tons by steamship passengers. 1t
was not simply that actual tourists
were violating the law, but the ir-
Irregularities of the servics on the
passenger docks and the example set
by those tourists had made the At
lantic steamships open runways for
professional smuggling. Genuine
passengers and professional snug
glers under the guise of genuine pas
sengers were not only smuggling by
can of false declarations, but
they were bribing the officers, cheat