The free lance. (Fredericksburg, Va.) 1885-1926, 1910-12-10
URGE BANK REFORM
MaCVeagh Says Present
System Breeds PdniCS.
WOULD ABOLISH RED TAPE
Secretary of Treasury Anxious For
Foreign Facilities and New
Legislation to Prevent Finan-
cial Upheavals.

Washington, Dec 9.-Currency re
form, extension Of the scope OF the ma
tional banking laws, in the event OF no
immediate general change Of the none
tary system: civil service retirement, 4
customs service free from practical
politics." business-like methods In the
daily transactions OF the government,
and a general abolition OF red tape
wherever It clogs the wheels OF the
governments business, are among the
recommendation contained in the an
nual report of Franklin MacVeagh
secretary of the treasury, presented TO
congress.
The expenses Of the government in
the fiscal year 1912. for which this
session Of congress is asked to appro-
pirate. are estimated at 5000, 49i.013.12.
The estimated expenditures on the
Panama canal are given as $56,92O,
s47.6s. making a total of $6S7,4l4.-
S60Sl. The estimates. If carried out,
represent net savings OF about SIS.
100000 in the executive departments
as compared with the appropriations
for the current fiscal year.
While the secretary's report estl-
mates the total expenses Of govern
mont at $6S7, 414.S60. the estimate
which have been transmitted 10 con
gress ask for S74S.414S6l, a difference
OF $6l.0O0.00O. Congress is asked to
appropriate this extra SOL 100000 to
make the sinking fund law effective.
Receipts for 1912 Secretary Mac
Yea "a estimates. will be $3.50. 100000
which would leave an ordinary su
plus over the $500, 494,O13.12. estimated
ordinary expenditures OF around $50
O0O.00 If the treasury should con
tinue TO pay for the Panama canal out
of the cash drawer as at present such
a surplus would be turned into a de
felt OF $7.4l4S6OS1.
Wants Monetary Reform.
Secretary MacVeaCA expresses the
hope that the monetary question will
come into congress detached from sec
t!onal or political considerations.
Our system can fai ly be called a
panic-breeding system. he says.
whereas every other great national
ban ing and currency system Is panic
preventing As long as We continue
under our present system we are Liable
to Ianics and the devastations OF pan
les reach Republicans and Democrats
and all parts OF the country alike.
"Panics are no longer necessary and
no longer respectable. 1t Is for the
gOy, rnment to say whether We shall
have panics in the future or not. 1t
will not cost a penny to prevent them,
and it has cost MS untold millions and
untold suffering every time We have
had one.
We have no system OF reserve: our
banking system destroys them. II con-
ccntrates 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 il as
fast as 1t inclines to accumulate
Need Of international Banks.
II there is no prospect Of immediate
change in the monetary system the
secretary thinks the American ma
,ional banking system should be de-
yeloped at once to perform an inter
national function. There is a clear
need Of banking facilities in foreign
countries where there is American
commerce, he says.
we shall never be a full-Aedged
commercial nation" he says, unless
we have merchant ships of our own
and foreign banks Of our own. We
should have banks at all parts 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 recon-
mends legislation to get away from
the present archaic" system and TO
permit the payment Of revenue to the
government by certified check. guard
ing the government against loss.
Reviewing the discovery Of frauds
and the subsequent reorganization Of
the customs service, Secretary Mac
Veagh urges appropriations for re-
wards to those who aid the govern
ment. The rehabilitation Of the Gus
toms service at New York has been
marked, he says. by a decided elimi-
nation of spells influences and practi-
cal politics.
Formerly" says the secretary.
cheating the government making
false statements and bribing officials
was regarded as a joke. but now he
adds, American travellers are more
and more realizing the indefensble-
ness of smuggling. its rank dishonesty
and its bad example and influence
Believe Recluse Was Not Slain.