The Birmingham age-herald., 1911-12-19
M'VEAGH WANTS REFORM OF HE
 BANKING SYSTEM
Secretary of the Treasury Submits His Annual Re-
 port To Co.,
URGES CORRECTIVE
 FINANCIAL LAWS
Foresees a Deficit in the Treasury At End of Fiscal Year 1913 of Eight
 cen Million Dollars-Total Expenses s637, ,92O,803


 l Washington. December 1s.-Appeals
 for the immediate reform of the coun- try's banking and currency system and
 scientific tariff Legislation. based upon
 entirely new reasons-the practical ex-
 perienees of the customs serviee-stand out prominently in the annual report of Secretary of the Treasury Mae Veagh submitted to Congress today. This statement of the nations finances birstles with urgent suggestions for corrective financial laws enacted in the l light of the lamp of experience 1 The Secretary of the Treasury fore- sees, according to the estimate of ex- perts, a surplus in the treasury at the
 end of the fiscal year 1913 of about
 s29,000,000, exclusive of expenditures
 on the Panama canal Including the estimated canal disbursements, how
 ever. the treasury will face deficit of approximately S1S0o0,00O. The total estimates of expenditures for next i year, exclusive of the Panama canal and the postal service. payable from postal revenue, are $637, ,920.S03. The estimates of receipts available for the general fund are s667 ,o00.000. Tile esti- mates for the construction of the Pan- anna canal during tue next year are $l7, 26S, 760, making a grand total of i estimated expenditures of s6S5fS4,5Gs. l Wants Immediate Action
 With all the prelminaries for re-
 visng the financial system accom- plished. Mr. Macyeagh declares there is no reason 10 postpone action. The tentative plan of the national monetary commission, outlined by it's chairman. former Senator Aldrch, lie says, satisfies in it's essentials the larger part of the expert opinion of the nation and is supported by the bus mess men, The secretary pledges the administration to do it's part in keep ing this financial issue wholly non partisan, believing that the result should be the prodact os both par-
 ties.
 1 In the contemplated reorga nization
 of the financial structure MT. Macveagh emphasizes the absolute need of pro- hibiting all banks national and state.
 from holding stock in other banks, sls a safeguard against any possible formation of much feared money 'trust' in the future. He ncges equal ity of national and state banks in do- ing trust company and saving bank business.
 We must provide and without reser- yation,'' he declares, for d perfect equa.4ty of privilege and opportunity between national and state banks. State banks must have every adVan- tage national banks have and na tional banks must have every adam tage state banks have. And thls equal l ity cannot be attaines unless national and state banks are on the same tool- ing as to trust company banking and as to savings bank functions.
 And it is indispensable that the new law shall deny with great precision to any bank included within it's provisions, whether national or state, the right 10 | own stock in any other Independent bank. The law should not tail to cOncluslNcly forbid such ownership. There is no inl- mediate danger to be apprehended from such holdings; but now is the time to | protect for the future the independence | and individuality of the bank; and to 1 forestall in thelr case the general ten l dency to the formation Of undac conl- | bnatons and trusts. The prohibition
 should be so explicit that it's spirit as
 well as its letter could be enforced We
 must prevent perpetually the concentrar | llOn or tue Dtllhll6 pONti III thG Hohps of the few--a concentration which under
 our present system is inevitable by the
 mere operation of financial evolution
 Needs of New System l The new banking system, the Secretary of the Treasury ayers, must provide with
 distinctness and completeness ample 1 banking facilities for the foreign com merce of the United States, which, with proper government announcement. he be- | lieves will be world wide and world va 1 ried.
 1 Tt is idle to expect, he adds, that we shall ever have developed foreign commerce without developed foreisa 1 banking system. our present system 1 grew up in q period of isolation. 1 To a Congress which is expected to remodel some of the tariff schedules, MT. MacVeagh urges from the standpoint or 1 experience the establishment of specific duties, instead of ad vaorem, wherever l the nature of the article involved makes that possible. He says
 sThe practice of adopting ad valorem duties adds to the ease and quickness with which legislation iNay be prepared,
 hut that is its only helpful quality-an1 | that lonely quality has it's palpable draw | backs Ad valorem duties lead directly | to the great majority of all the frauds upon the revenues with which the treas- 1 tiry department has to contend, and they do all they can to drive honest impor.- CTS out or business. lney add exceve'ns- l ly to the expense and responsibility or l administration, and are responsible m l largest measure for whatever demoraii-
 zation exists in the importing and GUS | toms business Theoretically ad vaiorem duties may have an appeal, but in prac- 1 tice they are deluson and snare
 Tariff Revision
 The principle of scientific revision Of | the tariff MT MacVeagh continues, should be applied not only to the quss- l ton of duties, but also to ciassincatioa 1 of articles and the language Of the law, 1 so that there may be no doubt as ,o tbe intent of Congress. When the scfen- t,e, metbod and spirit of legislation oa th,s subioet isl reduced to practice, GOV ! an,nr ali featttres of the tariff law, ar- | saot,ng its ready interpretation, the sec ,atarv declares an expensive element of | ~. alministra thon and large amount | c ,,tigation will be automatically elini- | .,a.,d Also. he adds, many vexations of | ,.est importehs and vast mass of , ,'''nderval,ationsi '' and frauds by dishonest f j,nnorters will disappear.
 .rhere can lbe no question, he con 1 4iTl l~