Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1912-12-05
M'VEAGH FAvORs
BANKING REFORM
SECRETARY OF TREASURY
MAKES RECOMMENDA-
TONS IN REPORT.
PRESENT SCHEME FAULTY
DECLARES RESPONSIBILITY FOR
BUSINESS DISASTERS AND
PANICs Is THROWN UPON
THE GOVERNMENT.

washington, Dtc. 1.-ouohSy
urging radical reform OF the "un-
rereasoned and unscientific' bank
ing and currency reform Of 12S46
ing and currency system OF the Uni
ted States, Franklin MacVeagh. sec
retary OF the treasury. freely warns
congress In his annual report submit
TED today that the federal govern
ment, as long as the present scheme
exists, will be exclusively response
BILE for the commercial. 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 Is
urgent, declares Mr.. Macveagh. In
outlining his idea OF the necessary
general provisions OF an adequate re-
lief measure. Aside from affording
flexible and elastic currency and re-
serves, such revision, he says,
should bring the banks into organ
ICED cooperation and provide for a
central agency through which they
could work together, free OF politi-
cal or trust control.
According to the estimates OF the
treasury department, the secretary
forseees deficit OF s22.556,023. ex-
elusive of Panama Canal expeditures.
for the fiscal year ending June 80.
1914, the first fiscal year OF Pres
ident Wilson's administration. In
cluding the Canal expenses. the de-
ficit is estimated at $52.73o.456. The
canal expenditures. he adds, how
ever, may be paid under the law from
bond sales. The estimated receipts
for that year are $4,000. 900,
while the ordinary appropriations are
ed upon present and they are going
estimated at s732,556. 1923. and the
cana Expenditures at s30.174.432.
Undoubtedly having probable tariff
revision In mind. the Secretary an
nounces that these estimates are
based upon present conditions and
laws.
For the current fiscal year. end
ing June 30, 1913, Mr.. Macveagh es-
Inmates that there will be a surplus
OF $40,200,000, exclusive OF Pan
ANA Canal expenditures. and deficit
og si,sO0,000 including the canal
transactions. He estimates receipts
for this year at s7ll. 200. 600 and or
binary disbursements at s670.000,-
600.
In connection with financial re-
form, Mr.. Macveagh says the people
are helpless under existing evils.
The present system never permits
fre action at any time. because Its
liability to sudden contraint and re-
striction Is always a part OF the ma
tons financial consciousness.
There never Is time," continues
the secretary of the treasury. when
there is any long look ahad; except
when we are In the midst OF panic
when there is long look Of disaster
ahead There Is never long look
o Tease and convenience and pros
perity ahead"
In the crop moving season, Mr.
MacVeagh points out. there Is a spe-
cial stress and restraint and the Sec
retary found an object lesson In the
conditions during the past autumn
when the banks were called upon to
finance the movement OF record
breaking crops. necessitating the EN-.
ployment OF nearly all OF their avail.
able resources under "our construct
ing system"
This relief which Is so urgently
needed by the legitimate business and
enterprise OF our people," he adds
lis not relief from n financial situa
tion built up by q financial world II
self but is from a system and condl
tions superinduced by the govern
ment; and forced upon the business
community and upon American SO
ciety. The banking and currency
system is the product OF federal lew
And there can be no relief from 4
until congress acts. And this Is VIII,
congressional action is urgent.
Pointing out that the banks for
tunately had been able to finance IN,
crop Improvement OF the past autumn
unaided by the government. the sec
retary says that the anomalous re
latlon between the treasury depar;
ment and the general financial worl
is a part CT the system to be reform.
ed. lie sddei: Taking large suia
Of actual money out OF the ordinar-