El Paso herald. (El Paso, Tex.) 1901-1931, 1910-12-09
REFORM IN The
CURRENCY IS
URGED
Secretary of Treasury Says
Present Is Little Better
Than No System.

Washington D. G, Dec S--CuIIehCS'
reform. extension of the scope OF the
national banking laws, in the event o.
no Immediate general changes in the
monetary system: civil service retire
ments a customs service free from
practical politics: buSinessllke r1eth-
DDS in the daily transactions OF the
government and a general aboitioA OF
red tape wherever il clogs the "Hee'S
of the governments business, are
among the recommendations conlalneu
in the annual report Of Franklin Mac
Veagh, secretary of the treasury pre-
scented TO congress today
The expenses Of the government Ia
the fiscal year 1912, for which this SEES
sion of congress is asked to appropriate
are estimated at $3.50, 494, O13.l2- Inc
estimated expenditures of the Panama
canal are given as $50, 92O,S 47.6S, max
ing a total of 1857, Ala, s60-S1. The esu-
mates. if carried out, represent net say
ings of about s16.0O0,0OO,0OO IN the eA'
ecutive departments as compared VII"
fhe concentrations for the current us
cal year.
Governmental Expenses.
while the secretary's report estimates
tba total expenses of the government
eft s6S7 $50, the estimates ""iC.i
have been transmitted to congress ASH
for s74S.414,S61, difference OF sol'vOO'
oo0 Congress is asked to appropriate
this extra So, 100000 to make the slnh-
ing fund law effective. II WouIu pe'
en- appropriation to permit the treasuIy
to begin applying one percent d
10 the discharge of the national dent
Tba law authorizing such a procedure
no. bean a dead letter for some time, as
CONGRESS- has meyer appropriated the
money ,,o-
Receipts for 1912. secretary Mac
veorb estimates. will be $3.50 ,oOV'
which would leave an ordinary surplus
of around $50 100000. If the treasury
should continue to pay for the Panama
canal out Of the cash drawer as al pres
ent such surplus would De lurheo "
q deficit of S7,414,S6O.S1.
Panie-Breeding Money System.
Secretary MacVeagh expresses the
hone that the monetary question VIII
come into congress detached from sec
tional or political considerations:
-.Our system can fairly be called
manic breeding system, ne says
"where as every other national banking
and currency system is panlc-preVeht-
inp As long as we continue under our
,-.ecant system we are liable to panics
and the dex7stations by panlcs reac"
panuhIicans. Democrats and all parts
of the country alike. Panics are no
longer necessary and no longer respect
able. 1t Is for the government 10 say
whether we shall have panics IN the
future or not. 1t is a mere matter OF
choice.
I'VE have no system of reserves cuF
banking spstem destroys them- II so"-
ceatrates in New York what are pre-
tended TO be reserves and then forces
the New York banks to lend and aoouSn
them Our system instead Of building
nm reserve. destroys it as fast as IL
inclines to accumulate
In connection with his criticism Oh
fhe money system, one OF the secreta-
rvs most important recommendations
concerns future issues OF Panama
bonds. of which $3.50, 100000 were au-
thorized by the tariff act Inc score
tarv renews the recommendations MADE
last year for legislation to tax the new
bondS at one and one-half percent II
1sed by national banks for circulation
and intimates that it might be more
preferable to isSSe the new .secu'1Aes
FOR investment purposes only at rare
of three percent
AS a check against the use OF me
bonds as the basis for a further 1nfia-
ton of the national bank currency, ne
suggests that a circulation tax Of even
two Dercent would have the effect OF
making them unprofitable for banks.
Urges Foreign Banks.
There is a clear need of banking IA
cilities in foreign countries Fhere
there is American commerce, he says
I'VE shall never be a full Pledged
commercial nation he Says, unless
we have merchant ships OF our own
and foreign banks of our own We
should have banks at all ports that are
important to our commerce.
THE treasury relations with the bust
moss communities are unbusinesslike,
artificial and burdensone, he declares
and he recommends legislation to per-
nit the payment of revenue to the gov
eminent by certified check
The recommendation that the treasu-
~ be authorized to issue gold certlfl-
Gates against gold bullion and foreign
gold coin is renewed
Civil Service
The rehabilitation of the customs
service at New York has been marked,
he says.-by decided elimination OF
spoils influences and practical politics
A civil service requirement is absolute
Nv the requisite of a satisfactory sys-
fem. A complete state of efficiency IN
the government departments, ne says,
Is impossible without some way Of re-
firing clerks in a just and humane
manner.
Secretary MacVeagh strongly recon-
mends that all nonpolitical offices he
Included in the classified service AS
sistant appraisers Of customs shoul1
be detached from politics for the effl-
cheney of the service, he says
The secretary pays high tribute 20
the men of the life saving service and
urges some form of retirement 1or
them.
Government Economics.
The secretary takes notice of a state
ment made by a United States senator
that the business of the government
could be conducted with saving @f
5000 600 0OG a year. He says:
when it is the fact that the entire
ordinary expenditures of the govern
fnent last year were less than s66O.OO
600 and when a great part of those eX-
penditures is not >reducible at all, as,
for example the interest on the debt
and the pensions, one can readily see