The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1910-12-09
By Associated Press.

BY Associated Press.
Washington, D. c., Dec. S.-Currency
reform; extension of the scope of the
national banking laws, in the event of
no immediate general changes in the
monetary system; civil service retire
ments, customs service free from
practical politics. business-like
methods in the daily transactions of
the government and general abolition
of red tape wherever it clogs the
wheels of the governments business,
are among the recommendations con-
tanned 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 $500, 0,49412. The es-
timated expenditures of the Panama
canal are given as $56,920, ,S47.69, max
ing a total of $6S7, ,414,86O.S1. The es-
Inmates, if carried out, represent net
savings of about $18,000,000 in the exc
cutive departments as compared with
the appropriations for the current
fiscal year.
Receipts for 1912, Secretary Mac
Veagh estimates, will be $680,000, 900
which would leave an ordinary surplus
of round $50,O00,00O. If the treasury
should continue to pay for the Panama
canal out of the cash drawer as at
present, such a surplus would be turn
ed to a deficit of 81 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 oi
panics reach republicans and demo
icrats and all parts of the country alike
Panics are no longer necessary and nc
longer respectable. 1t is for the gov
Iernment to say whether we shall have
panics in the future or not. 1t is &
mere matter of choice.
1--WE have no system of reserves
our banking system destroys them. 1
concentrates in New York what are
pretended to be reserves and theI
forces the New York banks to lenC
and abolish them. Our system, instead
Iof building up a reserve, destroys it al
fast as it inclines to accumulate"
In connection with his criticism o
the money system, one of the secre
Itary's most important recommends
ltions concerns future issues Of Panam;
bonds of which $290,OO0 900 were au
thorized by the tariff act. The secre
tary renews the recommendations h
made last year for legislation to tal
the new bonds at one and one-half pc
cent if used by national banks fo
circulation and intimates, as was an
nounced in news dispatches few day
ago, that it might be more preferable
Ito issue the new securities for invest
ment purposes only at a rate of thre
. per cent.
. AS a check against the use of tn
bonds as the basis for a further in
, flation of the national bank currency
he suggests that circulation tax o
even two per cent would have the et
! feet of making them improbable fo
| banks to use for such purpose an
at the same time would make them a.
Itractive to investors without injurin
the two per cent bonds of which NOR
! than $700,000,000 are outstanding. Al
: other means of accomplishing tn
) same end, the secretary suggests
| would be for congress to authorize a
: issue of s50,0O0,O00 or 500, 100000 {
! the bonds at three per cent withor
the circulation provision.