The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-12-09
M'vE|GH MAKES
ANNUAL REPORT
URGES THE ABOLITION OF "RED
.TAPE"-cLoGs WHEELS OF
BUSINESS.
ALSO CURRENCY REFORM
Would Make National Banks lnterna
tionaI-Abolish Superfluus Gus
toms Houses, Mints and
Assay Offices.


Washington, Zee. S.'Crrrcrcy re-
form, extension OF TIE scope Of the
national Banking laws, in the event Of
no immediate geaaral Changes in the
monetary system; civil service retire
ments a customs service free from
practical politics; business-like me-
thods in the daily transactions Of the
government and a general abolition of
red tape, Wherever 1t CLOGS tie wAeels
of tie Povernnelts business. are
among the recommendations contain
ed in the annual report of Franklin
MacVeigh, secretary OF the tIsasury,
presented to congress today.
Government Finances.
The expenses OF government in tie
fiscal year 1912, for which this ses-
sion Of congress Is asked to appro-
pirate are estimated at $3.50, 49i ,013.12
Tile estimated expenditures cf the
Panama Canal are given as $500 ~
S47G9, making a total Of sG87.4t4,-
SS0.S1.
The estimates. II carried out, reD-
resent net savings of abort eichtren
million in the executive departments
as compared with the appropriations
for the current fiscal yea.
Receipts fo~ 1912, Secretary Mae
Weigh estimates, will be $GS0,009,000,
which would leave an ordinary sur
plus OF around S50,000,000. Ir re
treasury should continue to ra~ FIR
the Panama Canal ort Of the c's1
drawer as at present such 81 rs
would be Turned TO q deficit OF J7.tl4.-
SG5.S1
Monetary Reform Needed.
Secretary MacVeigh expresses the
hope that the monetary cuesfion will
come into congress detached from sec
tionaI or political coalitions.
"Our system can fairly te called a
panic breeding system" he says,
whereas every other great national
banking and currency system Is pan
ic-rreventing AS lo1g as we continue
our present system, we are Liable to
panics and tie deyastations Of pan
ics reach Republicans and Democrats
and all parts of the country alike.
Panics are no longer necessary and
no longer respectable. 1t Is for the
government to say whether we snail
nave panics in the future o. net. It
is mere matter of choice
I'VE have no system Of reserve s.
our banking system destroys them. 1t
concentrates in New York what are
pretended to be reserves and then
forces the New York banks to lenl
and abolish them. Our system instead
OF building rp a reserve destroys it
as fast as II inclines to accumulate" I"
Mould Start on Panama Bends.
In connection with his criticism Of
the money system, one OF the secre.
tary's most important reNommanda-
tions concerns future issues of Pana-
ma bonds of wliieh S290,000,0C0 were
authorize by b1e tariff act. The
secretary renews the recommends
tions he made last year for legislation
to tax the new bonds at ore and one
half per cent If used by national
banks for circulation ana intimates,
as was announced in news dispatches
a few days ago, that II might be more
preferable to issue the new securi-
ties for' investment purposes only at
rate Of three per cent?
As a check against the use of the
bonds as basis for a iurt' er infia-
tion of the national bank currency,
he suggests that a circulation tax of
even two per cent would have the ef-
feet of making then unprc itable for
banks to use for such purpose anc
at the same time would make th am
attractive to investors without iniu~-
ing the two per cent bonds Of which
more than S700,000,000 are outstand-
ing. Another means of accomplishing
the same end, the secretary suggests.
would he for congress to authorize an
issue OF $50,000,000 OF $l00.000,000 Of
tine bonds at three per cent without
the circulation provision.
Make National Banks International
If there Is no prospect of immediate
change in the monetary system the
secretary thinks the American nation
al banking system should be devel
oled to perform an International lfune
tiCn. There Is a & ear need Of bank
ing facilities In foreign countries
where there is American commerce
: he says
I'VE sNall never be full feaged
commercial natiou," he says, unit
we have merchant SHIPS Of our owr
and foreign banks Of our own We
should have banks at all ports that
are important 70 our commerce."
The treasury's relations with tht
business communities are unbusiness