Arizona republican., 1911-12-21
HE DESIRES
 SOME CHANCE MCVeagh Makes His Annual
 Statement
 ADVOCATES REFORMS. Secretary of Treasury in His Annual Report Points Out Where the Present Currency Laws Should Be Amended.

i"I llit illlIHculdle reform or the Coun- | try's banking and currency system and
 scientific tariff legislation, based upon entirely new reasons-the practical 1 experiences of the customs service stand out prominently in the annual
 report of Secretary of the Treasury MacNeagh. submitted to congress to- day. This statement of the nations finances bristles with urgent sugges- tiOns for corrective financial laws, enacted in thel fight 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 S39,000.0OO. exclusive of the eXpendi- turestures for next year. exclusive of the Panama canal and the postal ser vice, payable from postal revenue, are $651,920,S03. The estimates of re- ceipts available for the general fund are $667.0O0,OO0. The estimates for the construction of the Panama canal during the next year are Si7,263, 7GO, making q grand total of estimated ex- penditures of s6S5. 5.1S4.5 565.
 With all the preliminaries for revis-
 ing the financial system accomplished. Mir. 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 its essentials the larger part of the expert opinion of the nation and is supported by the busi- ness men. The secretary pledges the administration to do its part in keep
 ing this financial issue wholly non- partisan. believing that the result should be the product of both parties
 In the contemplated reorganization of the financial structure, MT. Mac Ncagh emphasizes the absoluteneed of prohibiting all banks. national and state, from holding stock in other banks, as a safeguard against any possible formation of a much feared money trust" in the future He urges equality of national and state banks in doing trust company and savings bank business.
 We mustp rovide, and without res crvation," he declares. for d perfect
 
 between national and state banks. State banks must have every advan- tage national banks have; and national banks must have every advantage state banks have. And this equality can not be attained unless national and state banks are on the same foot ing as to trust company banking and as to savings bank functions
 And it is indispensable that the new law shall deny with great pre- cision to any bank included within its provisions. whether national or state, the right to own stock for any other independent bank. The law should not fail to conClusively forbid such ownership. There is no immediate danger to be apprehended from such holdings; but now is the time to pro tcct for the future the independence and individuality of the banks; and to forcstall in their case the general ten dcnCy to the formation of undue com binations and trusts. The prohibition should be so explicit that its spirit as well as it's letter could be enforced. We must prevent perpctually the con centration of the banking power in the hands of the few-a cOncentra- ton which under our present system is inevitable by the mere operation of financial evolution"
 The new banking system, the secre- tary of the treasury ayers. must pro vide with distinctness and complete nes sample banking facilities for the foreign commerce Of the United States which, with proper government en- enlargement he believes, will be world wide and world varied.
 Tt is idle to expect" he adds. that we shall ever have developed for eign commerce without a developed foreign banking system. The present system grew up in period of isola- ton"
 To congress which is expected to- some of the tariff schedules. Mir. MacVeagh urges from the stand point of experience the establishment of specific duties. instead of ad va lorem. wherever the nature of the ar ticle involved makes that possible. He says:
 The practice of adopting ad valOrem duties adds to the ease and quickness with which legislation may be pre- pared: but that iS it's only helpful that lonely quality has it's paIpable drawbacks. Ad valorem duties lead directly to the great ma jority of all the frauds upon the reve- nues with which the treasury depart ment has to contend: and they do all they can to drive honest importers put of business. They add exceeding | y to the expense and responsibility | Df administration and are responsible n largest measure for whatever de- exists in the importing md customs business. Theoretically. Id valorem duties may have an ap- ,eal but in practice they are delu- ion and snare
 The principle of scientific revision" f the tariff Mir. MacNcagh continues. hould be applied not only to the