Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-12-19
MAC VEACH APPEALS
FOR PROMPT REFORM
OF BANKING SYSTEM
Practical Experiences of Gus
toms Service Basis of Re-
concentrations for Imme-
diate Revision of Currency
(Ry Associated Press,

the immediate reform Of the countrys
banking and currency system and scien-
tific tariff legislation, based upon en-
tirely new reasons-the practical expe-
riences of the customs service-stand
out prominently in the annual report OF
Secretary of the Treasury. Macveagh.'
submitted to congress today. This state
ment OF the nations finances bristles
with urgent suggestions for corrective
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, 1913. Of about
s29,OOO.O 600. exclusive OF expenditures
on the Panama canal Including the es-
timated canal disbursements. however,
the treasury will face deficit OF ap-
proximately s1s,0Oo.ooo. The total ss-l
Inmates of expenditures for next year.
exclusive of the Panama canal and the
postal service. payable from postal rev.
enue. are s637, sos. The estimates
of receipts available for the general
fund are s6s7.0o0. 600. The estimates for
during the next year are $47,2ss.7so.
making a grand total of estimated ex-
penditures OF $es5.1s4.56s.
With al 1.-The preliminaries for revis-.
ing the financial system accomplished.
Mr.. MacVeagh declares there is no rea-
son to postpone action.
FAvORS ALDRICH PLAN.
The tentative plan OF the National
Monetary commission. outlined by its
chairman, former Senator Aldrfch, he
says satisfies In its essentials the larg-f
er part of the expert opinion OF the ma
ton and is supported by the business
men. The secretary pledges the admin
istration 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.. Maoveagb
emphasizes the absolute need OF prohib-
iting all banks. national and state, from
holding stock in other banks. as safe
guard against any possible formation
of a much feared money trust" in the
future. He urges equality of national
and state banks in doing trust compa-
ny and savings bank business.
-. must provide, and without res-
ervation," he declares. 'for eerfect
equality of privilege a. opportunity be-
tween 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 can not be at
tanned unless nationalA and state banks
are on the same footing as to trust CONF
pany banking and as to savings bank
functions.
And 1t Is indispensable that the new
law shall deny with great precision to
any bank included within its provisions,
whether national or state. the right to
own stock in any other Independents
bank. The law should not fail to conclu.
siveIy forbid such ownership. There is
no immediate danger TO be apprehended
from such holdings; but now is the time
to protect for the future the independence
and individuality of the banks; and to
foresta1l, in their case the general TEN
dency to the formation Of undue COM
bfnations and trusts The prohibition
should be so explicit that its spirit as
we'll as its letter could be enforced We
must prevent perpetual the concentra-
ton of the banking power in the hands
of the few-a concentration which UNI
der our present system Is inevitable By
the mere operation OF financial evolul
ton"
Y DEVELOP BANKING SYSTEM.
5 The new banking system. the secretary
OF the treasury AYERS, must provide With
distinctness and completeness ample
banking facilities for the foreign COM
merce of the United States. which. with
proper government announcement. hd
believes win be worldwide and world-
varied.
1T is idle to expect" he ADDS, that
we shall ever have a developed foreign
Commerce without "a developed foreign
banking system. Our present SYSTEM
grew up in a period of isolation
URGES SPECIFIC DUTIES.
To a congress which is expected to res
model some Of the tariff schedules, Mr,
MacVeagh urges from the standpoint Of
experience the establishment OF specifid
duties, instead of al valorem, wherevef
the nature OF the article involved makes
that possible. He says:
1.-THE practice Of adopting ad valorem
duties adds to the ease and quicknes5
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 treasi
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 adj
ministration and are responsible In
largest measure for whatever demoralizl
alton exists in the importing and GUS
toms business. Theoretically ad valore-n
duties may have an appeal, but in pracl
tice they are a delusion and a snare"
SCIENTIFIC REVISION"
The principle of "scieptiic revision
of the tariff Mr.. MacVeagh continues.
should be applied not only to the ques-
ton of duties, but also to cIassifca-
ton of articles and the language of the
law so that there may be no doubt as
TO the intent Of congress. When the
scientific method and spirit of legisla-
ton on this subject is reduced to praf-
tice, covering all features of the tariff
law, affecting its ready Interpretation,
the secretary declares. expensive ele-
ment of its administration and a large
amount of litigation viii be automati-
caIIy eliminated. Also, he adds, many
vexations of honest importers and a
vast mass of under-vaIuations ana
frauds by dishonest importers will dis