Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1912-12-04
RADICAL REFORMS
IN BANKING SYSTEM
URGED BY MACvEAGH
and THAT THEY CAUSE PNCS AND BRING DISASTER WHICH REACHES
into EVEN The HvNDlEST HOMES THROUGHOUT THE NATION
GOVERNMENT FACES TWENTY TWO
MILLION DOLLAR DEFICIT NOW

: And there can be no relief from il
j. until congress acts. And this is why
: congressional action is urgent
Pointing out that the banks fortu-
: nalely had been able to finance the
crop movement Of the past autumn
unaided by the government. the sec
retary says that the anomalous rela-
ton between the treasury department
= and the general financial world is Il
part of the system TO be reformed He
q added: Taking large sums of actual
money out of the ordinary financial
use and locking it up as dead mass
in the vaults of the treasury is a
proceeding as unscientfic and un"
reasoned as any other part Of our un-
reasoned and unscientihc banking and
currency system
4 relief measure reforming the
Lanking and currency system. the
secretary declares, must include,
among its necessary features, pro-
visions for never-failing reserves and
nevcr-failing currency, and for the
perfect elasticity and heXibility OF
and organized cooperation of the
banks, which are now suffering and
causing the nation to suffer by reason
Of their unorganiZed state: for cen.
/ t1al agency, to represent and act for
the organized and cooperative banks
this agency to be securely free from
political or trust control. but with
. a ha ,I
/ intillatc supervision of it; for in
dependent banking units-so indepen-
dCni that 10 one bank can be owned,
controlled or shared 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 re-
/ quirement made of a national bank
must be complied with equally Gr a
state bank, and every function or
privilege enjoyed by a state bank
shall be enjoyed by national bank:
for the utilization and the fluidty of
bank assets; for the scientific develop
ment of nges-domestc and for
eign; for foreign banking as an ad.
FOR taking the treasury department out
Of the banking business"
Discussing customs reforms, Secre-
tary MacNeagh says that widespread
exposures by the present administra-
ton of frauds have resulted in an an.
nual saving to the government of
more than $l0,000,O00, distinctly an
underestimate"
TO show that incoming travellers are
now more honestly declared their
baggage as the result of reforms. the
secretary points out that at New York
alone the revenues from travellers
imports have increased from yearly
average of $S90,6SS for the previous
administration. to about $21OO.00O in
l9l2 This class of frauds, he says,
has been not only conspicuous, but
almost defended
Regarding the pending investigation
o! the board of general appraisers at
New York by a commission appointed
by President Taft, Secretary Mac
Neagh says the board has drifted
rom its original institution as a
beard of customs review within the
treasury department to quasi-inde.
pcndence as court outside of it,
The department, he adds, needs a
board OF general appraisers within the
department TO supervise and unity
The appraising work of the country
Mr.. MacNeagh urges that all collec-
Icrs and surveyors of customs. naval
ollicerS, appraisers and assistant an
collectors of internal reve-
nue and all like officials of the treas
ury department whose appointment
requires confirmation by the senate be
transferred to the classified civil
service. Complete separation of the
treasury service, especialt the classi.
ned part of it, from practical politics,
S recommended by the secretary.
The abolition of ali assay offices in
me country except the one in New
ork is urged by Mr., MacNeagh. All
assay work, he adds, should be done
Al New York or at the mints.
Secretary MacNeagh announces his
ntention of reforming the treasury
departments business methods by a
scheme for the payment of govern
nent Obligations i'll such a manner as
- AVOID exchange on government
checks. He does not divulge the de-
ails but apparently contemplates the
distribution of government funds at
convenient points over the country for
he payment of checks. He points out
hat pension checks, for example, in
many instances are not really worth
heir face value because the difficulties
! collection enforce an exchange
barge.
Other recommendations by the sec
etary include: Construction of four
eVenue cutters and a building pre-
ram OF at least two cutters yearly
: luture; power presses for the
Sureau of Engraving and Printing.
(Contipued on page FOUR.