New-York tribune., 1911-12-19
M'VEAGH URGES BANKING
AND TARIFF REFORMS
Aldrlch Plan. He Says, Has
Eliminated PartisanShlp from
Monetary Question.
ITS ESSENTIALS APPROVED
Administration Pledged to Do Its
Surplus of $40, ,0OO,-
coo, Excluding Canal Dis
bursements, Predicted,

bursements, Predicted,
Washington Dec iS-Appesls for the
immediate reform Of the countrys banking
ana currency system and scientific tarin
legislation. based Oh entirely new reasons
the practical experiences Of the customs
service stand out prominently I'm the an
uuaI report Of Secretary MacNeagh. suo-
nitfed to ConcresS to-day. Bis review OF
the nations finances Is filed with urgent
suggestions for corrective financial laws
enacted in the light of experience.
The Secretary foresccs. according 10 the
estimate of experts. a surplus in the Treas
ury ~ the end Of the fiscal year 1913 OF
about 100000. exclusive Of expenditures
on the Panama Canal Including tho est
mated canal disbursements. however. the
Trsasury viii face deficit ~ approNi-
insteIy SlS"n.oa0 Tho total estimates Of
expenditures for next year. exclusive OF the
Panama Canal and the postal service pay
able from postal revenue. are $S57 go SO5.
Tho estimates of receipts available for The
general fund are :6s70OoOOO The estimates
for the construction OF the Panama Canal
10 the next wear are $i7263.760. making
total estimated expenditures Of sSS5.lSA5s5
With all the prehminaries for revising the
financial system accomplished Mr.. Mac
Nearh SAYS there is no reason TO postpone
action.
tentative Aldrieh Plan Approved.
Tn. tentative plan OF the National None
tary Commission. outlined by its chairman
ex-senator Aldrich, he says, satisfies in its
essentials the larger part of the expert
opinion OF the nation and IS supported by
business men. The Secretary pledges the
administration 10 do its part in keeping
this financial issue wholly non-partsan.
He says:
The common Endorsement Of the reform
and of its urgency marks in a peculiar man
ner tho non-DArtiSan character or Inc pres
ent movement. There IS no bit OF party
color left i'm the monetary question me
instinct OF the nation has eTadicated par
tisanShiD from this great business anu SO
cia question. Congress set the exam
ple by forming non-parusan cOiliiiiIa-
sion Ii found no difficulty IN rising
ont OF the air OF party 10 oeal WIN
this subject. And the example Nnlch the
Congress set has dominated the whole con
sideTation OF this question by commission
and people from that day TO this. II was
congress which determined that this ques-
ton should not become mixed up hste- I1sos
pered and possibly defeated by riNalrleS
and strife The nation took Congress at It's
word. and I'm all It's dealings with TINS cues
ton has been led by non-parussn instincts
great number Of tho people who have par
ticipated have all understood not only me
importance but the fitness Of keeping TINS
economical question on the non-partlsan
plano where II belongs and where alone II
can receive adequate treatment
So far as the administration Is concerned
n has heartily taken its cue from Congress
and has done. and will continue to DO. IFS
part in Keeping this great issue Wholly non
partisan The administration wants this
legislation 10 come from the whole Of Con
Eress and from both parties, and TO be for
the whole Of the people.
Guards Against Money Trust"
Nr. NIacveagh emphasizes the absolute
need Of prohibiting all hanks. national and
state. from holding stock in other banks,
ss safeguatd against tho possible forma-
ton Of money trust" In the future. lie
urges equality Of national and state banks
IN doing trust company and savings bank
business. adding:
We must provide. and without reserys-
tiou, tor a perfect equality of privilege
and opportunity between national and
state hanks state banks must have every
advantage national banks have, and ma
tional 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 savings bank
funcuons.
And It is indispensable that the new law
shall deny with great precision 10 any
hank included within its provision, whether
narion3l or state, the right 10 own stock
IN any other independent bank. The law
should not fail conclusively TO forbid such
ownership. There Is no immediate danger
70 be apprehended from such holdings; but
now Is the time 10 protect for the future
the independence and individuality of the
banks and 10 forestall i'm their case the
general tendency TO the formation Of undue
combinations and trusts. The prohibition
should be so explicit that It's spirit as well
as its letter could be enforced. We must
prevent perpetualY 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
The disabilities under which our country
labors are due not 70 the faults or failings
Of the individual banks. but 70 the fact
that these banks are not organized into a
cooperative and protective system: and
n follows that the fundamental and essen
rial feature of any reform is that the banks
should be thus organized. And organize
ton means the establishment Of central
Institution representative of the banks. But
this institution need not be and should not
he central bank. II must be purely and
only q central agency OF the banks. II was
natural 70 think ~ first of a central bank
but Il was early discovered that a central
bank could have no place In our system.
snd that II the approved and fortunate
features OF our present system were TO be
preserved. a. everybody determined they
should be, some other central institution
central bank could not perform the func-
lions waiting 70 he performed II could
rot I'll the need The thing required a
central instrution must be something new.
but also something normally evolved from
our present system The idea Of a national
reserve association has therefore grown
up; and n has grown up tust as the idea
of the clearing house grew up and II fol-
lows the clearing house 4 sequence on
= far larger and more important scale
Until lately ~ was not as clearly seen
a u IS now that the interests involved in
this great question are not confined 10 the
bankers and the large business community.
The interests OF every order Of society are
involved, especially IN the prevention Of
the barbarous disaster and havoc Of our
wholly unnecessary panicS, and scarcely
less in the hshitual interruption OF the
even flow OF business caused by the inCon-
Siancy Of banking facilities Farmers
working men, people Of the smaller bust
moss interests and people Al large are On
meshed in the imperfectionS Of our bank
ing and currency system. It is very fortu-
nate. therefore. that the question will be
presented 10 Congress this year in such
shape and with such information that its
committees and it's whole body can readily
act upon the question with perfect intelli-
cence. The present Congress will be con-
fronted with several other cardinal mat
ters: but none will be more urgent and
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