The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-12-19
Pledges Administration
Support to Aldrich
Currency Plan.
SEES NO REASON
FOR MORE DELAY
Secretary of Treasury Warns
Against Interholding of Bank
Stocks Lest Money Trust Be
Made Possible-Asks That
National and State Banks
Be Put on Same Footing.

washington. D. c.. December H.
appeals for the immediate reform OF
the country's banking and currency
system and scientific tarin Legislation.
based upon entirely new rcasons-the
practical experiences Of the customs
s.rfice-stand out prominently in The
ahhual report Of Secretary OF the
Treasury MacVcagh, submitted to Con
sress to-day. This statements of the
nations finances tris,les with urgent
suggestions for corrective financial
laws. enacted in the light OF the
lamp OF experience
The Secretary OF the Treasn-y fore
sees. according to the estimate Of ex-
pcrts' u surplus in the Treasury at the
end OF the nscai year 1913 of about
s29,oV0.VV0, exclusive or expenditures
on the Panama Canal. Including the
estimated canal disbursements, now
ever the Treasury VIII face dehcit
OF approximately siS,00p,UVQ. TIL. to-
tai estimate of expenditures for next
year, exclusive OF the Panama Canal
ana the postal service, payable from
postal revenue. are S637.3!o,Su3 The
estimates OF receipts available for the
general find are 657.UOV,uDQ. The es-
Inmates for tho construction OF the
Panama Canal during the next year
are si7,.6S.760. making a grand total
Of estimated expenditures of $685.
lsi.563.
No reason for Postponcment.
With all the preiimIlaries for re-
vising the financial system accom-
piishcd. Mr.. MacEeagh declares. there
Is no reason to postpone action.
The. tentative plan OF the Ma tional
Monetary Commission, outlined by It's
..h "a n In n
says. satisfies In its essentials the
larger part OF the expert opinion OF
the nation. and is supported by the
business men. The secretary pledges
the administration to do Its part in
Keeping this financial issue wholly
non-partisan, believing that the result
should be the product of both parties
In the contemplated reorganization
Of the financial structure. Mr. Mac
Neagh emphasizes the absolute need
of prohibiting all banks. national and
state. from holding stock in other
banks as safeguard asains, any
possible formation OF much feared
money trust" In the future. He urges
equality OF national ana State banks
in doing trust company and savings
bank business.
We must provide, and without res
ervation." he declares. for a perfect
equality of privileges and opportunity
between national and State banks
State banks must have every adyant-
age national banks have; and national
banks must have every advantage
State banks have. And this equality
cannot be attained unless national and
State banks are on the same footing
as 10 trust company banking and ms
to savings bank functions.
And IL Is INDISPENSABLE that tho now
law shall deny with great precision to
any bank included within its provis-
Ions. whether national or State, the
right to own stock in any other inde-
pendent bank. The law should not
fall to conciusively forbid such owner
ship. There is no immediate danger
to be apprehended from such holdings;
but now Is the time to protect for the
future the independence and individ-
uality of the banks: and to forestall in
their case the general tendency to the
formation of undue combinations and
trusts. The prohibition should be so
explicit that its spirit as Well as Its
letter could be enforced We must pre-
vent pcrpetually the concentration of
the banking power in the hands of
the few-a concentration which under
our present system is inevitable by
the mere operation of financial evolu-
ton"
Provide for Foreign Commerce.
The new banking system. the Secre-
tary of the Treasury AYERS, must pro-
vide with d!stinctness and complete
ness ample banking facilities for the
which, with proper government en-
couragcment, he believes will be world.
wide and world-varied.
TT is idle TO expect he adds, that
we shall ever have developed foreign
commerce without a developed foreign
banking system. Our present system
grew up in n period of isolation"
To Congress which Is expected to
remodel some OF the tariff schedules,
Mr.. MacVeagh urges from the stand :
point of experience the establishment
Of specific duties. instead of ad val
orem. wherever the nature of the ar
ticle involved makes that possible. He
says:
THE practice of adopting ad valorem
duties adds to the ease and quickness
with which legislation may be pro-
pared: but that Is its only helpful
quality-and that lonely quality has
its palpable drawbacks Ad valorem
duties lead directly to tho great ma
jority of all the frauds upon the reve-
nues with which the Treasury Depart
ment mas 10 contend; and they do all
they can to drive honest Importers out
of business. They add exceedingly to
the expense and responsibility Of ad-
ministration and are responsible In
largest measure for whatever democrat
ization exists In the importing and
customs business. Theoretically od
valorem duties may have an appeal,
but III practice they are delusion and
u snare"
Scientific lewiston.
The principle of scientific revision"
OF the tariff. Mr.. MaoVeagh continues,
should be applied not only to the ques-
Continued on Second Pagc.)