Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-18
Scientific Tariff Laws Also Ad-
vocated by Macveagh.
INSPIRED BY EXPERIENCE
Secretary of Treasury's Report
Bristles With Suggestions.
FOR CIVIL RETIREMENT PLAN
Renews His Former Recommends
tions-Statement Of Finances
Of the District.

Appeals for the immediate reform Of
the country's' banking and currency sys-
tenn and scientific tariff legislation. based
upon entirely new reasons-the practical
experiences OF tile customs service-stand
out prominently ins the annual report Of
Secretary Of the Treasury Macveagh.
submitted to Congress today. This state
fnent Of the nations finances bristles with
urgent suggestions for Corrective financial
laws. enacted in the light of the lamp
Of experience .'5s'e
The Secretary Of the Treasury .foresees,
according to, the estinatesof experts.
surplus.sn the Treasury at the end OF the
fiscal year 1918 Of about $29,o00.0O0. ex-
elusive Of expenditures on the Panama
canal. Including the estimated canal dis
bursements, however, the Treasury will
face a deficit Of approximately $1S.OO00oO
The total estimates of expenditures for
next year. exclusive of the Panama canal
and the postal service, payable from
postal revenue: are $6S7, 800. SO3 The esti-
ma&eea OF receipts available for the gen.
eral fund are $687 600 600. The estimates
during the next Year are 81 26a, 100, MAX
ing q grand total of estimated expendi-
lures Of $es5, 1S4,563.
No Reason for Delay.
With ali the preliminaries for revising
the financial system accomplished. Mr..
Macveagh declares there is no reason to
postpone action.
The tentative plan Of the national mon-
etary commission, outlined by its chair
man, former Senator Aldrich, he says.
satisfies In its essentials 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 non-partisan, believing that the
result should be the product Of both par
ties.
In the contemplated REORGANIZATION OF
the financial structure Mr.. MacVeagh en-
phasiEes the absolute need of prohibiting
all banks, national ana state, from hold-
ing stock In other banks as safeguard
much feared money crust: in the fature.
He urges equality q national ands state
banks in doing trust company. and saw.
ings bank business y ; =
I'VE must provide. and without. reser-
vatton, he DECLARES, Tor. perfect
equality Of privilege and opportunity be-
tween nationar and state banks State
banks must have every advantage nation
al banks have, and national banks, must
have every advantage state banks have.
And this equality canp0t .be attained un-
less national and state banks are on the
same footing as to trust company bank
ing and as to savings bank functions.
Should Guard Against Trusts.
And it 10 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 INDEPENDENT bank.
The law should not fall conclusiveIy to
forbid such ownership. There is no i'm,
mediate danger to be aapprehended from
such holdings: but now is the time to pro-
tect for the future the independence and
individuality OF the banks. and to fore
stall In their case the general tendency
to the. formation of undue combinations
and trusts. The prohibition should be
SO explicit that Its spirit as well as its
vent perpetually the concentration Of the
banking power in the hands Of the .ew-
concentration which under our present
system is inevitable by the mere opera
ton OF financial evolution"
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 encouragement, he be-
lieves, will be worldwide and world
varied.
1T Is idle to expect" he adds. that we
shall ever have a developed foreign COM
merce without a developed foreign bank
ing system. Our present system grew up
in a period of isolation"
To a Congress which is expected to re-
model some Of the tariff schedules Mr.
MacVeagh urges from the standpoint Of
experience the establishment of specific
duties. instead Of ad vaiorerh, wherever
the nature OF the article involved makes
that possible. He says: -,
Ads valorem Duties Expensive.
''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 lonelyfauaAfy has, Its palpable draw
backs. AID valotam duties lead directly
to the great majority OF a,is the frauds
~ IT.