Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-12-05
Secretary of Treasury Ask.
Congress to Act in Max
ing More Elastic Finan.
cial Laws for Country.
SCORES PRESENT
MONETARY SCHEME
Blames System in Vogue for
All Panics, Industrial and
Social Disasters; Calls it
Unscientific.

Washington, D. c.. Dec. 4.-Strongly
urging radical reform of the "unrea.
soned and unscientific" banking and
currency 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 disasters
which flow from panics and attack,
directly or indirectly, every home, In
the nation.
The present system promotes and
develops panics and legislation II
urgent, declares Mr.. Macveagh, in out.
lining his idea Of the necessary gen.
eral provisions of an adequate relief
measure. Aside from affording flexible
shd elastic currency and reserves,
such a revision, he says. should bring
the banks into organized cooperation
and provide for central agency
through which they could work to-
gether, free of political or trust con.
troll. &
Sees Big Deficiency.
According to the estimates Of the
treasury department, the secretary
foresees a deficit OF 322.556.O23. 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 esti
mated at $52.73O.455. The canal ex
penditures. 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. ap
propriations are estimated at $732.
656, ,023, and the canal expenditures Al
$50, ,174,432. Undoubtedly having prob
able tariff revision in mind. the secre
tary announces that these estimates
are based upon present conditions and
laws.
To BE Surplus This Year.
For the current fiscal year, endina
June 80, 1913, Mr.. MacVeagh. estimates
that there will be surplus of $40,
200, 900, exclusive Of Panama canal ex'
penditures, and deficit OF $1,800.00t
Including the canal transactions. HI
estimates receipts for this year Al
$711 100000 and ordinary disburse
ments at $e7o.so0,ooo.
Scores Present System.
In connection with financial reform
Mr.. Macveagh says the people are
helpless under existing evils. The
present system never permits free nc
ton at any time, because it's liability
to sudden constraint and restriction ia
always a part of the nations financial
consciousness.
There never is 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 long look of disaster
ahead. There Is never long look Of
ease and convenience and prosperity
ahead"
Must Provide Reserves.
A relief measure reforming tbs
banking and currency system the SEQ
retary declares, must include. among
it's necessary features. provisions for
never-failing reserves and never
falling currency and for the perfect
elasticity and flexibility OF both; for
the permanent organization and organ
lied cooperation of the banks, which
are now suffering and causing the ma
tion to suffer by reason Of their un-
organized state; for a central agency,
to represent and act for the organized
and cooperative banks-this agency to
be securely free from political or trust
control-but with the government
having adequate and intimate super
vision of it; 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 standards and as to func-
tions.
Place Many Under Civil Service
Mr.. MacVeagh Urges that all collec-
tors and surveyors of customs, naval
officers, appraisers and assistant ap-
praisers. collectors of internal revenue
and all like officials of the treasury de-
partment whose appointment requires
confirmation by the senate be, trans
ferred to the classified civil service.
Complete separation Of the treasury
service, especially the classified part
Of 1t from practical politics, Is recon-
mended by the secretary. 4
The abolition Of all assay Offices in
the country except the one at New
York, Is urged by Mr.. MacVeagh. All
assay work, he adds, should be done
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