Albuquerque morning journal., 1910-12-09
CUSTOM HOUSE
FREE FROM
POLITICS
ONE OF AMBITIONS OF
SECRETARY MACVEAGH
Currency Reform, Extension of
Banking Law and Business
Like Methods Also Urged By
Head of Treasury,

IBy Morning Journal Special Leased Wirei
Washington, Dec, S.--Currency re-
form; extension of the scope of the
national banking laws. In the event Of
no immediate general changes in the
monetary system; civil service retire.
ments, customs service free from
practical politics; business-like
methods i'm the daily transactions OF
the government and q general aboli-
ton of red tape wherever II clogs the
wheel Of governments business, are
among the recommendations con-
tanned in the annual report of Frank
lin MacNeaRh, secretary OF treasury,
presented TO congress today. The ex-
penses OF the government In the fiscal
year 1912, for which this session OF
congress is asked TO appropriate, are
estimated at $630.494 ,013.12. The es-
tlmated expenditures of the Panama
canal are given as $50, 6,920,S47.69,
making a total of S6ST Ala ,S60.S1. The
estimates, il carried out, represent
net savings of about S16.000,000 In the
executive departments, as compared
with the appropriations for the cur
rent fiscal year.
While the secretarys report esti-
mates the total expenses of the gov
crnment at s6s7, 414,S60, the estimates
which have been transmitted to con-
gress ask for S74S,414,S61, differ
ence OF SCI LOCO, 900. Congress Is
asked to appropriate this extra $61,
600 900 to make the sinking fund law
effective. II would be an appropria-
ton to permit the treasury TO begin
applying one per cent year to the
discharge of the national debt. Tho
law authorizing such procedure has
been q dead letter for some time, as
congress has never appropriated any
money.
Receipts for 1912, Secretary Mac
Veagh estimates, will be $3.50, 600, 900,
which would leave an ordinary sur
plus of a round $50,000.00o. II the
treasury should continue to pay for
the Panama canal out Of the Ncash
drawer as at present, such a surplus
would be turned to a deficit of $7,4l4,-
86O.S1
Secretary MacVeagh, expresses the
hope that the monetary question will
come into congress detached from
sectional or political considerations
"Our system can fairly be called
panic breeding system he says.
whereas, every other great national
banking and currency system IS panic
AS long as we continue
under our present system we are
liable to pancs and the devastations
)f panics reach republicans and dem
ltlAiAt anu All BAIAa VI tue
alike. Panlcs are no longer necessary
and no longer respectable. II is for
he government to say whether we
shall have panics In the future or not.
II is a mere matter of choice.
I'VE have no system of reserves;
)ur banking system destroys them It
In New York what are
'orces the New York banks to lend
md abolish them. our system, in
itead of building up a reserve, de-
itroys 1t as fast as it inclines to ac-
In connection with his criticism OF
he money system, one of the secre-
ary's most important recommended
ions concerns future issues of Pam
una bonds, Of which $3.50, 100000
we're authorized by the tariff act
The secretary renews the recommen-
lations made last year for legislation
o tax the new bonds at one and one
ialf per cent if used by national banks
or circulation, and intimates, as was
in news dispatches few
lays ago. that It might be more pref
rable to issue the new securities for
nvestment purposes only at rate OF
hree per cent.
As check against the use of the
unds as the basis for further infla-
ion of the national bank currency, he
uggests that a circulation tax OF
ven two per cent would have the
anks to use for such a purpose and
{ the same time would make them
ttractive to investors without iniur
lg the two per cent bonds, OF which
iore than 100000 are outstand-
~. Another means Of accomplish
* the same end, the secretary sug-
ests. would be for congress to au-
nor faya al
lO0.00O,000 of tho bonds at three
or cent without the circulation pro-
Ision II there Is no prospect of
change in the monetary
stem. the secretary thinks the Amer
an national banking system should
e developed to perform an internal
melton.
There is clear need of banking
cihties IN foreign countries, where
lere is American commerce, he says.
we shall never be a full fledged
numerical nation" he says, 'unless
@ have merchant ships Of our own
nd foreign banks Of our own. We
lould have banks at all ports that
e important to our commerce
The treasurys relations with the
isiness communities are unbusness-
xo artificial and burdensome. the
cretary says, and he recommends
gislation 10 permit the payment of
venue TO the government by certi-
I'd check guarding the government
.alnst loss
The recommendation that the treas
" be authorized to issue gold GER
icates against gold bullion and for
sn gold coin IS renewed.
Reviewing the discovery OF frauds
a the subsequent reorganization OF
q customs service, Secretary Mac
agh urges appropriations for re-
Irds to those who aid the govern
INT.
The rehabilitation OF the customs
vice az New York has been marked.
SAYS. by a decided elimination OF
oils. influences and practical poll
S.
American travellers are more and
IRE realizing the indefensibleness OF
its rank dishonesty and