The Barre daily times. (Barre, Vt.) 1897-1959, 1911-12-18
By Secretary of the Treasury
Mac Veagh, He Tells Congress
WOULD RESTRICT BANKS
Macveagh Would Prohibit All Banks,
National or State, from Holding
Stock in Other Banks-Pleads
for Equality Of Privileges.

Washington, d. c., Dec. ls.-Appeals
for &he immediate reform OF the coun-
try's banking and currency system and
scientihc tariff legislation, based upon
entirely new reasons-the practical eX-
periences of the customs service-stand
out prominently in the annual report Of
Secretary OF the Treasury MacVeagh,
submitted to Congress to-day. This
statement of the nations finances bris-
ties with urgent suggestions for correc-
tive financial laws, enacted in the light
Of the lamp of experience"
The secretary OF the treasury fore
sees, according to the estimate OF ex-
perts, surplus in the treasury at the
end of the fiscal year 1918 of about $780,
100000, exclusive OF expenditures on the
Panama canal, Including the estimated
canal disbursements, however, the treas
ury will face deficit OF approximately
| $ls000000 The total estimates Of ex-
penditures for next year, exclusive OF
the Panama canal and the postal sery-
ice, payable from postal revenue, are
$637 920s03. The estimates OF receipts
available for the general fund are S687,-
100000. The estimates for the construc.
tion of the Panama canal during the
next year are S47,263,760, making a
grand total of estimated expenditures OF
| $685., ,563.
With all the preliminaries for revis-
ing the financial system accomplished,
Mr. MacVeagh declares there is no rea.
son TO postpone action.
! The tentative plan of the national
monetary commission, outlined by its
chairman, former Senator Aldrich, he
says, satisfies in its essentials the larger
part of the expert opinion of the ma
| tion and is supported by the business
men. The secretary pledges the admin
stration to do its part in keeping this
financial issue wholly non-partisan, be
! lieving that the result should be the
product of both parties.
In the contemplated reorganization OF.
the financial structure, Mr. MacVeagh
emphasizes the absolute need OF prohib.
iting all banks, national and state, from
holding stock in other banks, as a safe
guard against any possible formation
Of much feared money trust" in
the future. He urges equality of na.
tional and state banks in doing trust
company and savings bank business.
''We must provide, and without res
ervation," he declares, "for a perfect
equality OF privilege and opportunity
between national and state banks State
banks must have, every advantage ma
| tional banks have; and national banks
must have every advantage state banks
have And this equality cannot be at
tanned unless national and state banks
are on the same footing as to trust
company banking and as to savings
bank functions.
"And it is indispensable that the new
law shall deny with great precision to
any bank included within the provi-
sions, whether national or state, the
right to own stock in any other inde.
pendent bank. The law should not fail
to conclusively forbid such ownership.
There is no immediate danger to be APP
pretended from such holdings; but now
is the time to protect for the future the
independence and individuality of the
banks; and to forestall in their case the
general tendency to the formation OF un-
due combinations and trusts, The pro
hibition should be so explicit that its
spirit as well as its letter could be en-
forced. We must prevent perpetually
the concentration of the banking power
in the hands of the few--a concentra-
tion which under our present system is
inevitable by the mere operation of
financial evolution"
The new banking system, the secre-
tary Of the treasury AYERS, must pro-
vide with dstinctness and completeness
ample banking facilities for the foreign
commerce of the United States, which.
with proper government encouragement,
he believes will be worldwide and
world-varied.
ut is idle to expect" he adds, @that
we shall ever have developed foreign
commerce without developed foreign
banking system Our present system
grew up in a period of isolation"
Other recommendations of Mr.. Mae
Veagh includes: A contributory system
of civil service retirement; transfer to
the classified civil service of number
of customs officials from collector down
the imposition of the nominee fee Of
Sl00 for protests to the board of gem
eral appraisers in customs assessments;
extending the one hundred dollars ex-
emption from duty granted returning
residents to include articles for house.
hold use, souvenirs, curios or gifts pro-
vision for at least two vessels year
for the revenue cutter service; author.
ity for the use of certified checks in the |
payment of all dues to the government
revision of the sinking fund law so as
to make it something more than prac-
tically dead letter; laws adequately |
prohibiting the importation of opium;
and revision of the oleomargarine
statute.
nDrcInrMT cEpMrn