The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-12-08
In Annual Report, Secretary Of
Treasury Urges Extending
Scope Of Banking
Laws
WOULD ABOLISH RED TAPE
Asks Congress for Appropriations of
$748,414,86t for Coming Year
Panama Canal Expendi-
lures Big Item.

Washington, ID. c., Dec. s.-Curren.
cy reform extension of the scope OF
the national banking laws, i'm III,
event of no immediate general change
of the monetary system: civil servic,
retirements; a custom service free
from practical politics; business like
methods in the daily transactions OF
the government and a general abol-
tion OF red tape where ever il clogs
the wheels of the government busi
ness, are among the recommendation
contained In the annual report OF
Franklin MacVeagh, secretary of the
treasury, presented to Congress today.
The expenses of government in the
fiscal year 1912. for which this session
of Congress is asked to appropriate,
are estimated at $630,494,013.12. The
estimated expenditure on the Panama
Canal are given as $50, O,s47.69, maxi
ing total of $6S7, ,S6O.S1. The esti-
mates, if carried out, represent net
savings of about s1S,000,0OO in the
executive departments as compared
with the appropriation for the current
fiscal year.
while the secretary's report esti-
mates the total expenses of the gov
ernment at s6S7,414.S60, estimates
transmitted to congress ask for an
appropriation of $74S,414,S61. Congress
is asked to appropriate the difference
of S61,000,000 to make the sinking
fund law effective. 1t would permit
the treasury to begin applying one
per cent a year to discharge the ma
tional debt. The law authorizing such
a procedure, has been a dead letter
for some time as congress has never
appropriated any money.
Surplus Expected In 1912.
Receipts for 1912. Secretary Mac
Neagh estimates. will be $3.50, 900, 900
which would leave an ordinary sur
plus of around $5O,0O0,O00. If the
treasury should continue to pay for the
Panama Canal out of the cash drawer
as at present, such a surplus would
be turned to deficit of $7,414, ,S60.S1.
Secretary MacVeagh, expresses the
hope that the monetary question will
come into Congress detached from sec
tional or political considerations.
"Our system can fairly be called a
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
To panics and the devastations of pam
les reach Republicans and Democrats
and all parts of the country alike.
Panics are no longer necessary and no
longer respectable. II is for the gov
ernment to say whether we hall have
panics i'm the future or not. 1t is a
mere matter of choice.
I'VE have no system of reserve; our
banking system destroys them. 1t con-
centrates in New York what are pre-
tended to be reserves and then forces
the New York banks to lend and abol-
ish them. Our system, instead of
building up a reserve, destroys 1t as
fast as IL inclines to accumulate.
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 $290,000.00O
were authorized by the tariff act. The
Secretary renews the recommended
tions he made last year for legisla-
ton to tax the new bonds at one and
one half per cent, II used by Nation
al banks for circulation.
Banks of Foreign Countries.
II there is no prospect of Immediate
change i'm the monetary system the
Secretary thinks the American Ma
tional banking system should be dew
eloped to perform an international
function. There is a clear need OF
banking facilities in foreign countries
where there Is American commerce,
he says.
I'VE shall never be a full fedged
commcrcial nation" he says. unless
we have merohant 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's relations with the
business communities are unbusiness-
like artificial and burdensome, the
Secretary declares and he recommends
legislation TO permit the payment OF
revenue to the government by certi-
fed check guarding the government
against loss.
The recommendation that the treas
ury be authorized TO issue gold ceru-
ficates against gold bullion and foreign
gold coin is renewed.
Recommending a study of the cas-
sifed system OF employees the secre-
tary declares that a civil service re-