The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1912-12-12
Is PRESSING NEED B
FOR BANK REFORMS


Washington, Dec. 9.@Strongly urg
Ing radical reform of the sunreasoned
n u~rscientifics banking and cnrren&
cy systemsof the United States. Frank
ury,. freely warns congress In his an
nua1 report submitted that the
federal government, as long as ths
present scheme exists. will be exclu-
sively responsible for the commercial.
Industrial and social disasters which
ton.
The present system promotes de-
velops panics and legislation lis urgent
declared MI. Macveagh. In outlining
his idea OF the necessary general pro-
visions OF In adequate relief measure.
Aside from affording flexible n LIAR
tic currency and reserves, such q res
vision, he says, should bring the banks
into organized cooperation and pros
vide Tor a central agency through which
they could work together, free OF po-
htical OF trust control.
Feresses Deficit.
According to the estimates OF the
treasury department, the secretary
foresees q deficit OF $22,b56,023, exclu-
sive Of Panama canal expenditures. for
the fiscal year ending June 80, 1914,
the first fiscal ear of President Will
son. administration. Including the ca
nal expenses, the deficit Is estimated at
$50, 730,465. The canal expenditures, he
adds, however, ma be paid under the
receipts for that year are $40, 100000,
while the ordinary appropriations are
estimated at $732,556.023, and the canal
ex-pendituresat $30,174,432. Undoubtedly
having probable tariff revision In mind.
the secretary that those es-
Inmates are based pon present con-
ditions and laws.
For the current fiscal year, ending
June 80, 1918, Mr.. MacVeagh estimates
tina there will be q surplus of $40,-s
200, 900, exclusive Of Panama canal ex-
penditures, and a deficit Of $1,800,000
including the hi transactions. He
estimates receipts for this year at STILL
100000 and ordinary disbursements at
$670, 500. 600.
In connection with financial reform.
Mr.. MacVeagh say the people are
helpless under existing evils. The pres-
ent system permits free action
at any time. because its liability to
sudden constraint and restriction Is al
Ways a part OF the nations financial
consciousness.
There never is a time" continues
The secretary of the treasury, when
there is any long look ahead; except
when we are in the midst of a panic
when there is a long look OF disaster
ahead. There Is never a long look OF
ease and convenience and prosperity
ahead"
In the crop moving season, MI. Mac
veagh points out. there Is q special
found an object lesson in h condi-3,
Ions during the past autumn when the
banks were called upon to finance the
movement Of record breaking crops, ne
cessitating the employment Of nearly
all Of their available under
"our constructing system"
Law Held Defective.
s0Vb3e reiinf which is so urgently
needed by the legitimate business and
enterprise of our people," he adds. lis
not relief from financial
built UP by a financial world itself, but
induced by the government. and forced
upon the business community and upon
American society. The banking and
currency system is h product OF fed
eral law And there a be no relief
from it until congress acts. And this
is why congressional action is urgent
A relief measure reforming the bank
ing and currency system, the secretary
declares, mus include. among Its nee
essary features, provisions for never
failing reserves n never failing cur
,rency, and for the perfect elasticity
and fiexibility Of both; for the perman-
ent organization and organized co-op-
Grafton of the banks, which are now
suffering and causing the nation to sur
fer by reason of their unorganiZed
SldLS i d. l. Oh aSCllSJy W tCPAS-
sent and act for the organized and CO.
operative banks-this agency to be Sc
curely free from political or trust con-
troll, but With the government having
adequate and intimate supervision of
1t; for independent banking units-so
independent that no one bank can be
owned, controlled or shared in in any
degree, directly or Indirectly, by any
other bank; for the equality Of all
banks, national or state, both as to
standard and as to functions-so that
every requirement made of a national
bank must be complied with equally
by a state bank, and every function or
privilege enjoyed by a state bank shall
be enjoyed by a national bank; for the
utilization and the fuidity of bank as
sets; for the scientific development OF
exchanges-domestic and foreign; for
foreign banking as an adjunct of our
foreign commerce; and for taking the
treasury department out of the bank
ing business"
Discussing customs reforms, Secre-
tary MacVeagh says that widespread
exposures by the present administra-
ton of frauds rave resulted in an an
nual saving to the government Of more
than 100000, 900, distinctly an under
estimate"
FACING DEATH, AGED