Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-18
SECRETARY OF TREASURY ASKS
IMMEDIATE ACTION ~
CONGRESS.
STOCK HOLDINGS IN OTHER
BANKS SHOULD BE STOPPED
Tendency Toward money Trusts"
Fr.usht With Danger, m'ev'ash
contsnds-Prsssnt Banking System
Handicap TO Development Of Foreign
Trade.

scientific tariff legislation, based upon
entirely new reasons-the practical ex-
periences Of the customs service
stand out prominently III the annual
report Of Secretary of the Treasury
Macveagh, submitted to congress to-
day. This statement of the nations d.
nances bristles with urgent suggestions
for corrective financial laws, enacted
in the light Of the lamp of exper-
renee"
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 1913 of about w.
900 O00 exclusive Of expenditures on
the Panama canal. Including the esti-
mated canal disbursements. however
the treasury will face deficit OF ap-
proximately S1s.000.000. The total es-
Inmates Of expenditures for next year.
exclusive Of the Panama canal and the
postal service, payable from postal
revenue, are $685.. e2o.e0s. The esti-
mates of receipts available for the gen.
eral fund are $6e7.o00,o0o. The esti-
mates for the construction OF the Pan
anna canal during the next year are
s47,263,760. making a grand total VI
estimated expenditures Of $6s5.lS4,ooo.
No Reason For Delay.
With sly the prelimiparies 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 It's
chairman, former Senator Aldrich. he
Az ia
larger part OF the expert opinion OF the
nation and IL supported by the business
men. The secretary pledges the ad-
ministrafion to do its part In keeping
this financial condition wholly nom
partisan. believing that the result
should be the product Of both parties.
Danger in Stock Control.
In the contemplated reorganization
OF the financial structure. Mr.. Mac
veagh emphasizes the absolute need OF
prohibiting all banks. national ana
state. from holding stock In other
banks. az a safeguard against any pos
sible formation OF much feared
money trust" in the future. He urges
equality Of national and state banks IN
doing trust company and savings bank
business.
1--WE must provide. and without res
eryation." he declares, for a perfect
equality Of privilege and opportunity
between national and state banks.
state banks must have every advant-
age national banks have: and national
banks must have every advantage state
banks have And this equality can not
be attained unless national and state
banks are on the same footing as to
trust company banking and as to saw
ings bank functions.
"And It is Indispensable that the new
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 indie
t,pendent bank. The law fhould not fall
to conclusively forbid such ownership.
There IL no immediate danger to be ap-
pretended from such holdings; but
now Ia the time to protect for the fu-
ture the independence and individual
ity of the banks. and to forestall IN
their case the general tendency to the
formation Of undue combinations and
+rnsts The prohibition should be so
explicit that its spirit as well as its
letter could be enforced. We must
prevent perpetually 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 evolution
4 Handicap ia. Commerce.
| The new banking system, the secre-
Itary Of the treasury AYERS, must pro-
vide with distinctness and complete
ness ample banking facilities for the
! foreign commerce Of the United
states. which, with proper government
encouragement he believes will be
world wide and world-varied.
i2-"It Il idle to expect" he adds. that
we shall ever have a developed foreign
com ierce without developed foreign
IbanKing system. Our present system
Larew up in D period of isolation"
~ : Specific Tariff Duties.
1, To congress which is expected to
I; remodel some Of the tariff schedules
Mr. Macvesgh urges from the stand
point Of experience the establishment
tpf specific duties, instead OF ad valor-
Fem. wterever the nature of the arti-
Sle involved makes that possible.N He
hays: -r...s
:'rhe practice Of adopting ad valorenl
ldutjes adds to the ease and quicknesa
With which legislation may be prepar-
led: but thai is its only helpful quality
l-and that lonely quality has its pal
pable drawbacks. Ad valorem duties
Head directly to the great majority Of
tan the frauds upon the revenues with
twfficfr the treasury department has t.
fcontHnd. And they do all they can to
.ldrfv1 honest importers out Of business
They. Add exceedingly to the expense
land responsibility Of administration
rama are responsible in largest measure
for whatever decentralization exists II
tthe importing and customs business
Theoretically .ad vaiorem duties ma,
thaye an appeal, but In practice the,
fare q. delusSon and . snare"
I the .princfpIe of scientific revision
Iltf the esriM,. Mr.. Macveagh continues
i ahoutd be applied not only to tn,
tqusseion of ruties, but also to classifi
y ca4tcn sof -ayticles and the language O
gltAs laSksosthat there may be no dotib
y x 8 - 81 TIE intent ccs.sress Whe,
E{iIe scisntihc method and spirit Of leg
EiS6atilik "a this subject 70 reduced I,
l1jSetiee. c4vering all features Of tn
1i3jQ NV. Affecting IT. ready interpre
y 15ous the secretary declares. an *
e. kelelnent q IL sdministratio!
- % aasosat e lltis.tion VA
stss ~ II < Z = 49, Y + 80 & -