The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1912-12-04
PEOPLE ARE HELPLESS
UNDER EXISTING EVILS
Declares The Secretary In Urging FL
nancial Reform-"There is Never a
Time When There Is any Long Look
Ahead" Except in Midst Of a Panic.
(By Associated PreSS.)

Washington, Dec. 4.-Strongly urg-
mig radical reform of the "unreasoned
and unscientific" banking and cur
rency system of the United States,
Franklin MacVeagh, secretary of the
treasury, freely warns Congress in
his annual report submitted today
that the federal government, as long
as the present scheme exists, will be
exclusively responsible for the COM
mercial, industrial and social disas-
ters which flow from panics and at
tack, directly or indirectly, every
home in the nation.
The present system promotes and
develops panics and legislation in
urgent, declared Mr.. MacVeagh, in out
lining his idea of the necessary gen.
eral provisions of an adequate relief
measure. Aside from affording fex-
ible and elastic currency and reserves,
such a revision, he says, should bring
the banks into organized CO. opera
tion and provide for a central agency
through which they could work to-
gether, free of political or trust con-
troll
According to the estimates of the
Treasury Department, the secretary
foresees a deficit of $22, ,556.023, ex-
elusive of Panama Canal expenditures,
for the fiscal year ending June 80,
1914, the first fiscal year of President
Wilson's administration. Including
the Canal expenses, the deficit is es-
timated at $52, ,455. The canal
7 expenditures, he adds, however, may
be paid under the law from bond sales
The estimated receipts for that year
are $710,OOO,OOO, while the ordinary
appropriations are estimated at 1892,
556,023, and the canal expenditures al
S30,174,43 Undoubtedly having
probable tariff revision in mind, the
secretary announces that those esti
mates are based upon present condi
stions and laws.
For the current fiscal year, ending
June 80, 1918, Mr.. MacVeagh esti
mates that there will be surplus o.
$40,200,O0O, exclusive of Panama Cana
expenditures, and a deficit of $1.S00,
900, including the canal transactions
He estimates receipts for this yea
at $711, 100000 and ordinary disburse
ments at $67OSOO,vOO.
In connection with financial reform
Mr.. MacVeagh says the people are
helpless under existing evils. Th'
present system never permits free
action at any time, because its liabili
ty to sudden constraint and restriction
is always a part of the nations finan
cial Consciousness.
There never is a time continue
the secretary of the treasury "whel
there is any long look ahead; excep
when we are in the midst of a PAM
when there is long look of disaste
ahead There is never a long loo
of ease and convenience and prosperit
ahead"
In the crop moving season, Mr.. Nj
Veagh points out, there is a specis
stress and restraint and the secretar
found an object lesson in the cond
tions during the past autumn whe
the banks were called upon to financ
the movement of record-breakin
crops, necessitating the employmer
of nearly all of their available r
sources under "our constructing sy
tenn"
\ This relief which is so Urgent
needed By the legitimate business an
enterprise of our people" he adds, "
4 not relief from a financial situatio
built up by financial world itsel
but is from a system and condition
superinduced by the government; an
forced upon the business communi'
and upon American society TT
banking and currency system is Il
product of federal law. And the
can be no relief from it until co