Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-12-05

MacNeagii, Secretary of the Treasury,
freely warns Congress in his annual
report submitted today that the fed
eral government, rs long rs the pres
eBt sAieme exists, viii be. exclusively
responsible for the commercial indus
trial and social disasters Which flow
FROM panics and attack, directly or ia
directly, every home in the nation.
The prcsdnt system promotes and
develops paAbs and legislation is mr.
gent, declared Mr. MacVcagh. in out
lining his idea Of the necessary general
provisions OF an adequate relief meas-
ure. Aside from fffording flexible and
elastic currency Iand reserves such Il
revision, he s1ss,5 should brino the
banks INTO prglniyed corporation and
provide lW afcentral agency through
which they GOULD work together, free
OF political er trust control.
According TO the estimates of the
Treasury department, the Secretary
fersees y Yiefieit of go, 556 023. exclusive
of panaVsa Canal expenditures. for the
fiscal Var ending June 80, 1914, the
first fiysai year of President Wilson
adiaiTstrstion. Including the Canal
expeY les, the deficit is estimated At
So. - .451{ The canal expenditures. he
addy however, may y raid under the
law from bond sales. The estimated
RED jDts Tor that year are $40, 100000,
Willie tne ordinary appropriations are
estimated ut $132, 556 ,o23. and the canal
EXPENDITURES at ss0174,422. undoubted
" haH ing probable tariff revision III
miId the Secretary announces that
these estimates are based upon present
conditions and laws.
FSr tie current fiscal year, ending
June 30, 1919. Mr MaeVeagh estimates
that thfre Will BE- a surplus oil 0,2o0,-
ea0. exclusive Of Panama Canal expcn-
diturcs, and a deficit of $l,S00.0o0 in
Gliding the canal transactions. He esz
timates reeeipts-for this year at $11t-
o0eG0o and ordinary disbursements At
500 s90.9f0.
In cqnnection with financial reform,
Mr.. NdcVeash says the people are
belplGc@ under existing evils. Tie pres
ent system never permits free action
as any time. because its liability 70
Sudden consjraint and restriction IS
always part - tEe nationis financial
consciousness. Tier. never is time,
continues the Secretary OF the Treas
urg.. s,when there Is any Slong look
ahead: except when We are in the
midst Of a panic When there is long
look OF disaster ahead. There is never
a I6hg iools-4of ease ard convenience
and pro sperity ahead.
In the crop moving season. MIR. Mac
Vea@h points out, there is 4 special
stress aud restraint and the Secretary
foun6 IN. object lesson in the conditions
during the past autumn wien The
banks We're called upon to finance the
movement OF record breaking crops,
5neeessitating the employment of near
L. ali Of their available resources nn-
arter our constructing system.
%Tais. raiief Which is 50 urgently
needed BY The legitimate business and
enterprise Of our people" he adds, rs
MOI relief from 4 financial situation
hulfi up ny = iinancial world Itself,
hui rs rom q system and conditions
snper.nduced by the government; and
forced upon the business community
ana upon American society, The bank
ing and currency system is the product
al federal law: And there can he no
relief from it until Congress acts. And
this is why Congressional action is ur-
gent.
Pointing out that the banks fortu-
nately hal been able 10 finance the
crop movement of the past autumn
unaided by the government. theSSeere
tary says that The anomalous relation
between the Treasury Department and
the general financial world is part
OF the system To be(reformed. He add
ed. Taking large sums Of actual
money out If the ordinary finan-
eial use and locking it up as n
dead mass in the kaults of the
Treasury is a proceeding as unscicntifc
ana tnreasoned as any other part ef
our unreasoned. and unseientific bank
ing and currency system
\ relief measure reforming the bank
ing and curreacy system. the Secretary
declares. must include. among its
necessary features, provisions for neV-
failing reserves and neyer-fallinS
Ncurreney. and for the perfect elastic
ity and feasibility Of both; for Inc per-
nl2nent Organization and organized co.
operation of the banks. which arc now
suffering and causing the nation to SUI =
fer by reason OF their unDrsanized
fstaae: for a central agency, 10. repre-
sent and act for the organized ana CO
operative banks-this agency &c be Sc
cSre!y free from political or trust
control. but with the government hay
ing adequate and intimate supervision
a 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 rs to fnnctions-so that
every requirement made of a national
bank must be compiled with equally by
state bank, and every function or
privilege enjoyed by a state bank shalt
be enjoyed by 4 national bank; for
the utilization and the fluidity of bank
assets; for the scientific development
of cnanges--domestic and foreign; for
foreign banking as an calumet of our
foreign commerce; and for taking the
TreaSury Department out of tile bank
ing business.
Discussing customs reforms, Secreta-
ry MacVeagh says that Widespread
exposure by the present administration
Of frauds have resulted in an annual
saving TO the government Of more
than $4,000 900, distinctly an under
aefifS,nfn