The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1910-12-15
Currency System
"A Panic Breeder

II concentrates In New YORK what
are pretended TO be reserves and
then forces the New York banks to
lend and abolish them. Our sys.
TEN, instead Of building up a re.
serve, destroys It as fast as it In
clines to accumulate.
! In connection with his criticism OF
the money system, one OF, Secretary
Macyeagh's most important recon-
mendations concerns future issue:
of Panama bonds of which $780,.
100000 were authorized by the tar.
i'll act The secretary renews the
recommendations he made last year
for legislation to tax the new bonds
at one and one-half per cent if used by
national banks for circulation and
lintimates, as was announced in
news dispatches, a few days ago,
that 1t might be more preferable to
issue the new securities for invest
ment purposes only at rate OF
three per cent.
Circulation Tax.
As a check against the use OF
bonds as the basis for further in
I flation OF the national bank cur
rency, he suggests that circulation
tax of even two per cent would
have the effect OF making them I'M
profitable for banks to use for such
a purpose and at the same time
would make them attractive to in
Evestors without injuring the two
per cent bonds of which more than
$500, 100000 are outstanding. An
other means of accomplishing the
same end, the secretary suggests,
would be for Congress TO authorize
an issue of $5O,OOo,O0O or $780,
100000 of the bonds at three per
cent without the circulation priv
ilegs.
If there is no prospect of immedi-
ate change in the monetary system
the secretary thinks the American
national banking system should be
developed to perform an inter
national function. There is clear
need of banking facilities in foreign
countries where there is American
commerce, he says.
Merchant Ships.
1--WE shall never be full 1edged
commercial nation" he says, Jun
less we have merchant ships of our
own and foreign banks OF our own.
We should have banks at all ports
that are important 10 our com
merce."
The treasury's relations with the
business communities are unbusi-
ness-llke. artificial and burdensome,
the secretary declares, and he rec
ommends legislation to permit the
payment Of revenues to the gov
'ernment by certified check, guarding
the government against loss.
The recommendation that the
treasury be authorized to issue gold
certificates against gold bullion
and foreign gold coin is renewed.
Reviewing the discovery OF frauds
and the subsequent reorganization
of the customs service, Secretary
MGoveagh urges appropriations for
rewards TO those who aid the gov
eminent, The rehabilitation of the
customs service at New York has
been marked, he says, by decided
elimination of spoils influences and
practical politics.
American travellers are more and
more realizing the indefensibleness
of smuggling. its rank dishonesty
and its bad example and influence, :
says the report.
Civil Service Retirement.
Recommending a study of the
classified system OF employees the
secretary declares that civil ser
vice retirement is absolutely the
requisite of satisfactory system.
The contributory system OF retiring
allowances the secretary recon-
mends as the only one which has a
chance OF adoption and as best for
the men and women of the service.
He urges their friends to concen-
trate upon that movement A oom-
plete state of efficiency in the gov
eminent departments, he says. is
impossible without some way of re-
firing clerks in Just and humane
manner.
Secretary MacVeagh strongly rec
ommeuds that all non-political Off
ces be included in the classified
service. Assistant appraisers OF
customs should he detached from
politics for the efficiency of the SER
vice, he says. The secretary pays a
high tribute TO the men of the life
SAVING service aud urges some form
lor retirement for them.
4 Ridiculous Statement.