Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-12-19
PREDICTS DEFICIT
Secretary of Treasury Estimates
Years Expense at $685., 1874, 563.
HE PROPOSES TwO REFORMS
Financial system and Methods o.
Collecting Customs shOuId Ne
Revised i'm Light of Ex-
perience.

prominently in the annual report of Sec
rotary Of the Treasury MacVeagh, sub
mitted to congress today.
The secretary OF the treasury foresees,
| according to the estirnate of experts.
surplus in the treasury at the end OF the
fiscal year 1913 Of about 500, 600 exclu-
sive OF expenditures on the Panama canal
Including the estimated canal disbursc-
ments the treasury will face a deficit OF
approximately S1S,0o0,O00. The total esti-
mates Of expenditures for next year, ex-
elusive of the Panama canal and the
postal service. payable from postal reve-
nue., are s637, 81, sO3. The estimates of re-
ceipts available for the general fund are
S667, 100000. The estimates for the CON
struction OF the Panama canal during the
next year are 7GO, making a grand
| total OF estimated expenditures of $685.
1874, SOS.
With all the prelinlinaries for revising
the financial system accomplished. Mr..
MacVeagh declares there is no reason to
postpone action.
The tentative plan of the National
Monetary commission, outlined by its
chairman, former Senator Aldrich, he
says satisfies in it's essen tails 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 nonpartisan, believing that
the result should be the product of both
parties.
banks Must he Independent.
In the contemplated reorganization of
the financial structure, Mr.. MacVeagh
emphasizes the absolute need of prohibit
ing 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 flu
ture. He urges equality of national and
state banks in doing trust company and
savings bank business.
The new banking system, the secretary
Of the treasury AYERS, must provide with
dlstinctness and completeness ample
banking facilities for the foreign COM
merce of the United States, which, with
proper government encouragement, he
believes, will be worldwide and world
varied.
1T is idle to expect" he adds, that
we shall ever have a developed foreign
commerce without developed foreign
banking system. Our present system grew
up in a period eof isolation"
To a congress which Is expected to
remodel some OF the tariff schedules Mr.
experience the establishment of specific
duties, instead of ad valorem. wherever
the nature OF the article involved makes
that possible. He says:
The practice of adopting ad valorem
duties adds to the ease and quickness
with which legislation may be prepared.
but that is its only helpful quality-and
that lonely quality has its palpable draw
backs. Ad valorem duties lead directly
to the great majority of all the frauds
upon the revenues with which the Treas
ury department has to 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 larg-
est measure for whatever decentralization
exists in the importing and customs
business. Theoretically ad valorem duties
may have an appeal. but in practice they
are delusion and a snare"
The principle OF scientific revision of
the tariff, Mr. Macveagh continues.
should be applied not only to the ques
ton Of duties, but also to classification
OF articles and the language of the law
so that there may be no doubt as to the
intent of congress.
There can be no question" he con-
cludes on this subject, that the need of
rendering the administration of the GUS
toms business OF the country simple,
prompt and certain, with a rational saw
ing of useless expenditure is an additional
reason of great weight for the enlightened
method of tariff legislation to which the
best sentiment of the country has been
looking forward for more than a quarter
OF century"
budget System Proposed.
Mr.. MacVeagh recommends the appoint
ment Of commission, consisting of
representatives OF congress and the execu-
tive departments, to evolve a budget sys-
tenn for the government. This is neces-
STATED he says by the widely scattered
and disintegrated responsibilities govern
ing estimates, appropriations and revenue.
The abolition of all the assay offices, ex-
cept the one at New York is urged by
the secretary. They cost the government
$lS5,00o yearly, and the whole amount is
thrown away" he adds.
Declaring that the work of rehabIIitat-
ing the customs service has been vigor-
ously prosecuted. the secretary says that
developments as to undervaluations and
frauds continue to be most impressive
and to make IL evident that the end of
the reform is not yet in sight" He hopes
a
year
The customs districts are being reorgan-
lied and the secretary announces that no
viii ask congress later to abolish a con-
siderable number OF useless and expensive
customs offices.
Other recommendations .l Mr.. Mac
Veagh include: A contributory system of
civil service retirement; transfer 10 the
classified civil service OF a number Of Gus
toms officials from collector down: tho
imposition OF the nominal Zee OF 81 Tor
protests to the board OF general an
pralsers In customs assessments; extend
ing the 500 exemption from duty granted
returning residents TO include articles for
household use, souvenirs, curios or gifts.
provision for at least two vessels a wear
for the revenue cutter service; AUTHORITY
for the use OF certified checks In the
payment OF ali dues TO the government.
revision OF the sinking fund law so as
to make 1t something more than practi-
eally dead letter; laws adequately nro-
hibitng the importation or opium; and a
revision OF the oleomargarine statute