The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1912-12-05
Secretary Of the Treasury Urges Rad.
icsI Reforms In "Unressoned
and U~nseientife Systems"

wAsHiSGTON. Dec. a. strongly
urging radical reform % TIE "unrsasoned
and unscientihc- banking and currency
system OF the United states. F,ranklln
hacNeagh. Secretary Of the Treasury.
freely warns Congress TO- Dis annual
report submitted today tina tie federal
government. ~ long as the present
scheme exists. viii be- EXCLUSIVELY f~esp8n.
slble for the commsrDili. Industrial and
social disasters which now from panlcs
home in the nation.
The present system promotes ana Do
hs-ppN uauics and legislation Is urgent.
declares Mr NarNeagh. iu outlining his
ldea OF the necessary general provisions
Of an adequate relief measure. Aside
from anording flexible and elastic cur
rency and reserves. such "a revision. he
says. SHOULD bring the banks into organ
lied cooperation and provide for a CEN
trail agency through which they could
work together. free Of political or trust
control
According 20 81 the Treasury
department. the S~-rratary Iorse-s "a
dehcll 81 t--."sb.oZ3. exclusive Of Pana-
ma canal Expenditures. for the fiscal year
ending June 30. 1914. the FIRST fiscal year
81 President Wilson = administration
Including the Canal expenses. the de-
hcit Is m al s~5...lO4sg The
canal Expenditure. be add however.
may be paid under the Law from bond
sales The estimated receipts for that
year are t7i0.OOO.00O while the ordinary
appropriations are estimated AT $50
.5s!ez5. ana the. canal eNp.dltu-es at
t39.l54.4a2. Undoubtedly HAVING pro-
bable tarin revision m mind. the see
rotary announces that the-,
arr based upon present conditions and
For the current fiscal year. ending
June 30. 1913. Mr. MacNeagh est mates
that there win be- a surplus Of $40
zoo. 1000. exclusive % Panama Canal az
penditures. and a dcuclt ~ $4,000 900
including the Canal transactions. lie
ESTIMATES receipts FOR this year at
1.ll QUO unn md nFIHnnrua J..
At $3.50. 100000.
In connection with uancia reform.
ar. AiaCN eagh says the people are help
less under existing evils The present
system never permits free action at any
time. because Its liability To- sudden
constralnt and restriction is always "a
ness.
There never Is a time continues the
secretary ~ the Treasury. when there
II any Ions look ahead. except when W.
are ia the midst of "a panic when there
is a long look of disaster anead. There
IL never - long look OF easc and cOuycu-
fence ana prosperity ahead
In TIE crop moving season. Mr.. Mac
N"dgh points uut. there is 81 SPECIAL
stress and restraint ana the Secretary
FOUND an object lesson Ia the conditions
curing thc past autumn when tire banks
were called uIon To- finance the move
ment OF record breaking crops. utces-f-
tatlng the employment Of nearly all Of
their available resources unl.r our
constricting system"
This Keller which Is SO urgently
needed BY a." legitimate business and
not relief from a financial Si:Iau1I
built up by "A financial world itself. but
~ from a system and conditions super
induced ~ the government and forced
upon the business community and moon
American society. The banking and
currency system II the product OF FED
from II until Congress acts. AMI tIi~
~ Why Congressional action is urgent
Pointing out that the banks fortunate
, nau been able 20 nance the crop
movement 81 the past autumn uuafdei
by the government. the Secretary saws
mat the anomalous relation between the
Treasury Department and the general
nhah'lai Nptld u a part of TIE system
TO he enforced. lie added Taxing large
sums ~ actual money out Of the ordi-
nary unaCial use and locking II nm As
a dead mass in the vaults 81 tie Treas
ury L. q proceeding as unsricutinc and
unrehsoned - any other part or our un-
currency system
\ relief measure reforming the bank
INK ANA currency system. the secretary
declares. mus include. among It's nee
ssssry features. provision ioI never
Ealing TeAeTvSs AHd uevtf-faIiug cur
rency and for the perfect ,isstic.ty and
ueNihiltty Of both. for a.. permanent
organization and organized c1-pp.rafibn
OF the banks. which are now suffering
and causing the nation Co suffer 10y reas-
on or their u"nOrEAniZ-l state FOR a
central agency. to represent and act for
the organized and Cooperative banks
TINS agency 20 be securely free from
political or trust control. but with tie
government having adequate AMI init
mat" supervision or o. for i~udsuruIsut
hanklug uutts-So ~uIsut that no
one bank can De- owned. controlled or
shared IN 90 any degree. directly or in
directly by any other bank for the
tluhltE or Hll banks. national or state.
both as To- standards and as Co functions
SO that every requirement mad. Of a
national bank must De- compiled with
Equally by e state bank. AMI every
junction " privilege enjoyed by a state
hank shall hr enjoyed bv a national
bank for The utilization and the fuidity
cf hank assets. for fr" scieIfIn. d-trIuu-
meut or eNcnanEes-Iomestir and for