Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-12-09
"Other Great National Bank.
ing and Currency Systems
Are Panic Preventing Sc.
cretary Adds, in Report
PANICS NOT NECESSARY
AND NOT RESPECTABLE
Asks for Civil Service, BusI-
ness-Like Methods, General
Abolition of Red Tape, Gus
tom Service Without Politics
tRy Associated press.l

WASHINGTON, Dec. S.-Currency re-
form, extension of the scope of the ma.
tional banking laws, in the event of no
immediate change of the monetary sys-
tenn; civil service requirements; a Gus
toms service, free from practical" poll
itics; business-like methods in the dali
ly transactions of the government ana
general abolition of red tape wherev-
er 1t clogs the wheels of the governs
ments business, are among the recon-
mendations contained in the annual re-
port of Franklin Macveagh. secretary
of the treasury, presented to congress
today. 81
The expenses OF the government In
the fiscal year 1912. for which this SEES
sion of congress is asked to approprI-
ate, are estimated at s63O,4s4,0I31s
The estimated expenditure on the PAM
anna canal are given as s5s.s2o.s47es.
making a total of ssS7.414.SS0 The
estimates, IL carried out. represent net
savings of about s1S.O00,000 in the ex-
ecutive departments as compared with
the appropriations for, the current fis-
cal year. 500
While the secretary's report esti-
ment at s6S7,414.S60. the estimates
which have been transmitted to congress
ask for s74S.414,S61, a difference of $751;
100000 Congress is asked to appropri-
ate this extra S61,000,000 to make the
sinking fund law effective. 1t would
be an appropriation to permit the treas
ury to begin applying 1 per cent q
year to the discharge of the national
debt The law authorizing such pro-
Cco Il Inal 11%% Co.
time, as congress has never approprf-
| ated any money.
RECEIPTS ssso.ooo, 900.
Receipts for 1912. Secretary Macveagh
estimates. will be ss0.O0O,eOO, which
would leave an ordinary surplus OF
around s50,000.00. II. the treasury should
continue 10 payssfor the Panama canal
out of the cash drawer as at present,
such a surplus would be turned to a de-
ficit of s7,414s60.s1.
Secretary MacVeagh expresses the
hope that the monetary question win
come into congress detached from sec
tional or political consideration.
Our system can fairly be called
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 liable
| les reach Republicans and Democrats
land all parts of the country alike. /
Panics are no longer necessary and no
longer respectable. II is for the gov
eminent to say whether we shall have
panics in the future or not. 1t Is
mere matter of choice.
I'VE have no system of reserves;
our banking system destroys them.
1t concentrates in New York what are
IN - and then
forces the New York banks to lend
and abolish them. Our system, instead
of building up reserve, destroys IL
as fast as it inclines to accumulate.
AS TO BONDS.
In connection with his criticism OF
the money system, one of Secretary
MacVeagh's most important recon-
mendations concerns future issues OF
Panama bonds of which s2s0.000.0o0
were authorized by the tariff act. The
secretary renews the recommendations
he made last year for legislation TO
tax the new bonds at IL per
cent III used by National banks
for circulation and intimates, as was
announced in news dispatches, few
DAYS ago, that it might be more pre-
ferable to issue the new securities Tor
investment purposes only at rate Ok
8 per cent.
AS a Cn6Ck dSdlHSl lAC o0S
bonds as the basis for further infla-
ton of the national bank currency, no
suggests that circulation tax or even
2 per cent would have the effect ox
making them Improbable for hanks 70
use for such purpose and at the
same time would make them attractive
to investors without injuring the
per cent bonds Of which more tnan
S7oo 600 900 are outstanding. Another
means of accomplishing the same end
the secretary suggests. would be Tor
congress TO authorize an issue OF sSo,-
oOo, 900 or s1oo.o0o,o0o of the nonosu -
~ cent without the circulation priv
ilege.
change in the monetary system me
secretary thinks the American na a,ss,
banking system should be envelopes
- nerform an international Junction.
There is clear need of banking facil-
tiles in foreign countries where tnefe
is American commerce. ne says.