The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-05
MACvEAGH SCORES
CURRENCY SYSTEM
Sounds Warning Against Com
mercial, Industrial AMI
Social Disasters.
ADVOCATES WIDE REFORMS
Predicts Big Deficit in First
Fiscal Year OF Wilson's
Regime.

Washington, December 4-Strongly
urging radical reform OF the "unrea-
soned and unsclentinc' banking and
currency system Of the United states,
Franklin MacVeagh Secretary IF the
Treasury, freely warns Congress ia his
annual report. submitted to-day. that
the Federal government. as long as
the present scheme exists. xiii be eN-
clusively responsible Tor the CONNER
cial. Industrial and social disasters
which flow from panics and attack. d.
rectly or indirectly. every home In the
nation.
The present system promotes and
develops panics. and Legislation Is uFS-
ent. declared Mr.. MacNeag-. in out
lining his idea OF the necessary gen
erai provisions OF an adequate renef
measure. Aside from affOrding flexible
and elastic currency and reserves. SUCH
revision he says. should bring the
banks into organized cooperation ana
provide for a central agency through
which they could work together. free
OF political OF trust control
Tore.ees DeGcit.
According 10 the estimates 0. the
Treasury Department. the secretary
foresees a deficit OF $22.55e,o23. eH-
elusive Of Panama Canal expenditures.
for the fiscal year ending June 80. 1913.
the nFst hscal year OF President VIII
sons administration Including the
can5i expenses. the deficit is estimated
al S52150.455. The canal expenditures.
he adds. however, may be paid Under
the law from bond sales. The estimated
receipts for that year are $4,000, 900.
while the ordinary appropriations are
estimated at s.52.o5S,o2S. and the canai
expenditures at {3e,i74,452. UndouDt-
s6ly having probable tariff revision In
mind. the secretary announces that
these estimates are based upon pres
ent conditions and laws.
For the current fiscal year. ending
June 80 1919. SIR. NaeVeagh estimates
that there will be surplus Of 5000
0e0 exclusive Of Panama Canal ex-
penditures and deficit Of 1880, 900.
including the canal Transactions. he
estimates receipts for ;s.s year at
.7li 6eo. 900. and ordinary disburse-
menrs at ss7o.seo. 900.
In connection with financial reform.
Mr. MscVeagh says the people are
helpless Under existing eviis Tho
present system never permits free &C
ton at any time. because its liability
to Sudden constraint and restriction is
always a part OF the nations financial
consciousness
There never 10 time" continues
there is any long look ahead except
when we are in the midst Of q panic.
when there is q long look OF disaster
ahead. There Is never a long look OF
. ease and convenience and prosperity
ahead
An object Lesson.
In me crop moving season. NJ. Mac
Veagh points out. there Is special
stress and restraint. and the secretary
. found an object lesson in the condi-
{ tons during tie past autumn when
the movement OF record breaking
crops. nccessitatins the employment OF
nearly all OF their available resources
under our constructing system"
This relief. which !. so urgently
needed by the legitimate business and
enterprise Of our people he adds.
is not relief from a financial sttua-
ton built W BY a financial world IT
self but Is from system and condi-
lions super:nduced by the government
and forced upon the business COM
munity and upon American society
The banking and currency system -
the product OF Federal law, and there
can he no relief from It until con
gress acts And this is why congress
sional action IS urgent"
Pointing out that the bank. fortu-
natefv had been able TO finance the
crop movement OF the past autumn IN
aided BY the government. the secretary
saws that the anomalous relation De-
tween the Treasury Department anu
the general financial world 10 a part o,
the system to be reformed lie added;
Taxing large sums OF actual money
OIL; OF the ordinary fnaDcial Use ana
locking IL Up as a dead mass IN the
vaults OF Tire Treasury is a proceeding
as unscientific and unreasoned as any
other part OF or unreasoned and I'M
scientific banking and currency sys-
tenn"
relief measure reforming the bank