Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-12-21
APPEALS FOR !. S.
BANKING REFORM
Practical Experience Of Customs
Service New Reason OF
Secretary MaoVeagh.
Washington. Dec. 1s.-Appeais for the

40 and currency system and scIenuhc
tariff legislation, based upon ehUreN Nv"
reasons, the practical experiences "i NV
customs service stand out rronlihsntN
IN the annual repori '' % go.
Treasury MacVeagh, submitted 10
xress to-day. This statement vi ''o
ton's finances bristles with urhe"'
sessions for corrective hnaiicia' US
oc,ed in the light OF the lamp Oh "a
enCe.' ..a,,.,. r,r,soes ,
r,a secretary of the treasury lore'oe''
aocordinr TO the estimate Vi eNpei'''
,r,Ius in the treasury at inc ehu ~
a,',ai year 1918 of about S29'"o'"o. emu
80 oxnonditures on the Parma
, Including the estimated carl DIS
,'.souents. however. the treasury Will
.a deficit of approximately s1,@o'Uo.
rho total estimates of eXpendit res ior
,,oxt wear exclusive of the Panama canal
and the postal service. payable rom pos
raj revenue, are 49,, 92O,s03 The 5stimates
of receipts available for the gereral FUND
are 1861 10000. The estimates for the con-
struction of the Panama canal during the
next year are $472G3, 100. making a grand
total of estimated expenditures of $780,
1853.
With all the prelminarios for revising
the financial system accomplished. Mr.
MacVeagh declares there is no reason 10
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
business men. The secretary pledges
the administration to do its part in
keeping this financial issue wholly
non partisan, believing that the re-
suit should be the product of both
parties.
CHECK ON MONEY TRUST.
In the contemplated reorganization
of the financial structure, Mr.. Mac
Veagh emphasizes the absolute need
of prohibiting all banks. national and
state, from holding stock in other
banks, as safeguard against any pos
sible formation OF much feared
money trust" in the future. He
urges equality of national and State
banks in doing trust company and
savings bank business.
We must provide. and without res
ervation' he declares, for a perfect
equality of privilege and opportunity
between national and State banks
state banks must have every advan-
taEe national banks have; and nation
NJ banks must have every advan-
tage state banks have. And this equal
lty cannot be attained unless National
and state banks are on the same foot
ing as to trust company banking ant
as to savngs bank functions.
And # is Indispensable that the
new Law shall deny with great pre-
cision 90 any bank included within
tine provisions, whether national u
state, tie right to own stock in any
other independent bank. The law
should not fail to conclusively forbid
such ownership. There is no imme
diate danger to be apprehended from
such holdings; but now is the time Ia
protect for the future the indepen-
Lcnce and individuality of the banks;
and to forestall in their case the gen
oral tendency to the formation of un-
due combinations and trusts The
prohibition should be so explicit that
it's spirit as well as its letter could be
enforced. We must prevent perpetu-
ally the concentration of the banking
power in the hands of the few. con
ccntration which under our present
system is inevitable by the mere OPP
GRAFTON of financial evolution"
FOREIGN BANKING DEMAND.
The new banking system. the secre-
tary of the treasury AYERS, must pro-
vide with distinctness and completes
ness ample banking facilities for the
foreign commerce of the United States
which, with proper government en-
no n,
world wide and world-varied.
1T Is idle to expect" he adds, "tha
we shall ever have a developed foreis
commerce without a developed foreig
banking system. Our present systel
grew up in "A period Of isolation.
To Congress which is expected
remodel some of the tariff schedules. NJ
MacVeagh urges from the standpoint
experience the establishment Of specit
duties, instead of ad valorem wherevt
the nature of the article involved max,
that possible. He SAYS:
The practice of adopting ad Valorel
duties adds to the ease and quickne'
with which LEGISLATION may he prepare,
but that is its only helpful quality, and tn;
lonely quality has It's palpable draw back
Ad valorem duties lead directly to Il
great majority Of all the frauds upon II
revenues with which the treasury depar
mcnt has to contend: and they do a
v they can to drive honest importers out
business. They add exceedingly to II
! expense ana responsibility of administr
tion and are responsible in largest mea
urc for whatever Generalization eXis
In the importing and customs bushes
Theoretically al valorem duties may ha'
an appeal but in practice they are
delusion and a snare"
SCIENTIFIC TARIFF REVISION
The principle of Scientific revision
of the tariff. Mr.. MacVeagh continue
should be applied not only to the que
tiOn Of duties, but also to classific
tion OF articles and the language
the law so that there may be no dou
as to the intent of Congress. VIII,
the scientific method and spirit of L.
islating on this subject is reduced
practice, covering all features of t
tariff law, affecting its ready inte
probation, the secretary declares,
expensive element of its admnistrati
and large amount of litigation w
be automatically eliminated, Also
adds, many veXations of honest II
porters and a vast mass OF under VI
nations and frauds by dishonest II
porters will disappear, he adds
There can be no question" he co
IL cludes on this subject, that the ne