The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1912-12-04
OF the United States 20 Avert
Possible Panics Says Sec
rotary MaeVeagh.
BIG DEFICIT AHEAD
Far More Elastic Currency
Needed Believes the
Cabinet Officer.

WASHINGTON, D. G., Dec D.
Strongly urging radical reform Of
the "unreasoned and uuscientifc'
banking and currency system OF the
United states, Franklin .8facVeagh,
secretary OF the treasury, freely
; warns Congress in his annual report
submitted today that the federal
government. as long as the present
scheme exists, WI be exclusively
responsible for the commercial, in
dustrial and social disasters which
flow from ps.1ics and attack, di-
rectIy or indirectly every home in
the nation.
The present system promotes and
develops pan.cs and legislation IS
urgent declared Mr.. MacVeagh, in
outlining his idea OF the necessary
general provisions OF an adequate
relief measure. Aside from Afford
ing flexible and elastic currency
and reserves, such a revision, he
says. should bring the banks into
more organized cooperation and
provide for a central agency through
which they could work together, free
of political or trust control.
According to the estimates of the
treasury department. the secretary
foresees a. deficit OF So, 566, o2S, ex-
elusive of Panama canal expend=
/. lures, for the fiscal year ending j ne
80. 1914 the first fiscal year OF
president Wilson'S administration
including the canal expenses the
dehcit is estimated at -$52,72O,452-
The canal expenditures, he adds
may he paid under ese law from
bond sales. The estimated receipts
for that year are S71o.0oOoOo'
while the ordinary appropriations
are estimated at $7$ 2;556.o23, and
the canal expenditures at S$0174'-
1872. Undoubtedly having probable
tarir revision in mind, the secretary
announces that these estimates are
based upon present conditions and
laws.
For the current fiscal year, ending
June 30, 1913. Mr.. MacVeagh esI-
mates that there will be surplus
of $4,000. 900, exclusive OF Panama
canal expenditures, and deficit OF
81. 500, 900 iacludiug the canal
transactions. He estimates receipts
for TINS year at $7II,OOO,ooo and
ordinary disbursements at $6Io,-
100000.
In connection with the financial
reform Mr.. MacVeagh says the peo-
pie are helpless under existaaE evils
The present system never permits
free action at any time, because its
liability to sudden constraint ana
restriction is always a part OF the
nations financial consciousness.
.eThere never is time" con-
tinues the secretary of the treasury
when there is any long look ahead;
except when we are IN the midst OF
panic when there is long look
OF disaster ahead. There is never a
long look of ease and convenience
and prosperity ahead"
In the crop moving season, Mr.
I MacVeagh points out, there is a
speciaI stress and restraint and the
secretary found an object. lesson in
the condition during the last au-
tuma when the banks we're called
upon to finance the movement Of rec-
ora breaking crops, necessitating the
employment Of nearly all OF the
available resources under our con-
structing system"
This relief, which is so urgoatly
needed by the legitimate business
and enterprise of our people," he
adds. sis not relief from financial
situation built up by a financial
world itself. but is from a system
and conditions superinduced by the
government; and forced upon the
business community and upon
American society. The banking and
currency system is the product OF
federal law: and there can be no re-
lief from it until Congress acts. And
this is why congressionl action is
( urgent"
pointing out that the banks for
tunateIy had been able to finance the
crop movement of the last autumn
unaided by the government. the
secretary says that the anomalous
j relation between the treasury de-
partment and the general financial
i'worId is a part of the system to be
reformed. he dded: Taking large
CONTINUED on page eighth