The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-12-08
Secretary of Treasury Submits His Annual
Report to ress---Recommends Cur
rency Reform Extension of Scope of
Banking Laws and Exclusion of
"PracticaE' Politics from
Customs Seruice.De-
clares Present Sys-
tennis Truly Panic.
Breeder.
I'm 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.
Iments, 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 $3.50. .494.12. The es
timated expenditures of the Panama
canal are given as $56,92OS47.69, max
ing total of $6S7 ,414,S60.S1. The es
Inmates, if carried out, represent net
savings of about $1S,000,000 in the exc
cutive departments as compared witt
the appropriations for the current
fiscal year.
Receipts for 1912, Secretary Mac
Veagh estimates, will be $6SO,O0O,OO(
which would leave an ordinary surplus
of round $5O,00OOOO. If the treasury
should continue to pay for the Panama
canal out of the cash drawer as a
Ipresent, such a surplus would be turn
ed to a deficit of $7,414,860.S1.
Secretary MaeVeagh, expresses The
hope that the monetary question viii
come into congress detached from sec
Itional or political considerations.
Our system can fairly be called ;
Ipanic-breeding system he says
whereas every other great nationa
banking and currency system is panic
preventing. AS long as we continu,
under our present system we are liabl
to panics and the devastations o
panics reach republicans and demo
Gratis and all parts of the country alike
Panics are no longer necessary and NJ
longer respectable. 1t is for the gov
ernment to say whether we shall hav
panics in the future or not. 1t is
mere matter of choice.
1--WE have no system of reserves
our banking system destroys them
concentrates in New York what ar
pretended to be reserves and the
forces the New York banks to lem
and abolish them. Our system, instea
of building up a reserve, destroys it a
lfast as it inclines to accumulate"
In connection with his criticism 0
the money system, one of the secre
tarys most important recommends
ltions concerns future issues of Panam
bonds of which $290,000,O00 were al
thorized by the tariff act. The secre
Itary renews the recommendation h
, made last year for legislation to ia
the new bonds at one and one-half pc
} cent if used by national banks fo
circulation and intimates, as was al
: nounced in news dispatches few day
! ago, that it might be more preferabl
Ito issue the new securities for inves
ment purposes only at rate of thre
per cent.
AS check against the use of th
bonds as the basis for further il
flation of the national bank currenc.
he suggests that a circulation tax {
even two per cent would have the e
feet of making them improbable fC
banks to use for such a purpose an
at the same time would make them a
tractive to investors without ilJurin
the two per cent bonds of which NOR
than 100000 are outstanding Al
other means of accomplishing tn
same end, the secretary suggests
would be for congress to authorize a
issue of $5O,OOO,OOO or $10O 100000 c
the bonds at three per cent withou
the circulation provision.