The Washington herald., 1910-12-09

! IiGuG EuDllN
In the beginning OF his report, MT
MacVeagh calls attention TO the fact
that more than slS.OoO,OOO has been saved
in the executive departments proper as
compared with the appropriations for the
current year The ordinary estimates for
1912. he says, are almost ST. 900 less
than the estimates ultimately reported 70
Congress for the year 1911. The redue-
ton In the estimates for 1912 is to be
added in the consideration OF reduced
government expenditures to the reduc-
ton made last year. since it is now al
most two years since the present adj
ministraton began the curtailment OF the
estimates.
| Speaking OF the Panama Canal. Mr..
MacVeagh declared that 1t might De
wise il Congress would authorize the Is
suance OF $50, 100000 or Sl00,0e0Ooo of per
cent panama Canal bonds. Congress au-
thorized the issuance of S290,569,OO0 worth
OF Panama bonds, at any rate OF INTEREST
up 10 per cent
Mr.. MacVea 81 believes that IL is pos
sible 10 make a trial issue of these bonds
without the circulation privilege, which
would put them into the hands Of invest
ors and would not affect the value OF the
2s. Therefore, they might not reach the
open market. and the value OF the Is
as a basis for circulation would never be
in danger.
Mr.. MacVeagh, however. insists that
the difference in the circulation tax for
the Is and for the proposed Panama
bonds should be equalized. The eircula-
ton tax on 8 is one-half of per cent
The tax On Panama S. therefore, Mr.
NlacVeagh believes. should be ! i-2 per
cent.
Panics Due 10 Present System.
Panics. Mr.. MacYeagh asserts. are like
ly to continue Ia this country so long as
We keep our present banking system.
"'Panics," says he. ARE no longer nee
essary and no longer respectable. They
are avoidable. but not under our system.
our system can fairly be called a panic
breeding system. 1t Is for the govern
ment 10 say whether it will have panics
In the future. 1t will not cost a penny
20 prevent them. We have no system OF
reserves. our banking system destroys
reserves. II concentrates in New York
what are pretended to be reserves. and
and abolish them. We have no way to
increase our currency when IL is needed,
except under the Aldrich-Vreeland Law,
which will soon expire and which is only
intended for emergencies.
There is a clear need. the Secretary
says, of American banks in foreign coun-
tries. where American commerce needs
banking facilities. We shall never be
Int fETTT- al
nation, he believes, until we have mer-
banks of our own.
Mr.. MacVeagh believes. also. that ma
tional banks should be permitted to do
the business of trust companies.
The regulation that payments OF rev.
enue to the government must be made in
actual currency. the Secretary holds. is
archaic. He sees no serious practical
danger in taking a certified check; all OF
the similar business OF the country, he
asserts, is done by checks, and they are
not even certified. He does not concede
that the government would be likely to
lose a penny ''m a thousand years" by
making this change
Under the present law gold certificates
may be issued only against United States
coin. Mr.. MacVeagh proposes that Con-
gress authorize the issuance Of such GER
tificates against foreign coin and bullion.
The sinking-fund law. Mr.. MacVeagh
says. has fallen into neglect 1t should
be revived. he thinks. to a point where it
can be obeyed.
When he speaks OF the attempts made
by the government to collect the duties
coming TO it from returning European
travellers, Mr.. MacVeagh does not conceal
his anger.
80 entirely oblivious wero a large
number Of our tourists to the moral con-
siderations involved in these crimes" he
says. that the attempt of the govern
ment to reform the service and make IL
honorable and useful met with criticism
and resentment exactly as II the gov
eminent and not the smugglers were
committing the crime
Morale of Service Improved.
1.-THE improvements made in the Gus
toms service have increased the revenue
at most OF the Eastern ports to a re-
markabIe degree. The morale through
out the service has been improved. and
the personnel. standards, and methods
are better"
Mr.. MacYeagh does not agree with the
widespread belief that the government
can save sSOO.OOO.OOO.
The popular impression as to the ex-
tent OF possible economy in the admins
tration. Of the executive departments"
says he. sis singularly exaggerated, and
this misconception is very harmful"
Mr.. MacVeagh hopes for an organized
coordination over appropriation bills
among themselves and of revenue esti-
mates and other estimates with appro-
pTiation bills. and of an organized CO.
operation between the executive and the
legislative departments, with r view of
securing as far as possible the advan-
tages that other governments enjoy by
reason of the budget system He says
that the question of expenditures of q
great government like the United States
is altogether too large and complex to
be handled scientifically by anything but
a thoroughly organized responsibility,
which shall represent both the legisIa-
tive and executive departments
His last paragraph is devoted to the
tariff board. I'VE have" says he, lat
last arrived at the possibility of a scien-
tific treatment of tariff legislation. We
have arrived where the interests Of all
OF the manufacturer.
those of the merchant, those of the con-
sumner, and those of the government
can receive fair, scientific. competent and
nonpartisan consideration on the basis
of reliable facts and knowledge. The
assistance of this board will
soon enable Congress, whenever it is
ready to legislate on the tariff, to pro-
coed properly"
Mason Before Naval COmIaittee.
Rear Admiral Newton F. Mason, Chief
Of the Bureau of Ordnance Of the Navy
appeared before the House