Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1912-12-04

Washington, ID. G.. Dec. i.-Strong
ll urging radical reform of the ''un
reasoned and unscientitic' banking
and currency system of the United
States, Franklin MaCNeagh, secretary
ot 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 ard social disas-
ters which follow panics and at
tack, directly or indirectly, every
home in the nation.
The present system promotes and
develops panics and Legislation is
urgent, declared Mr. Macy Neagh, in
outlining his idea of the necessary
general provisions Of an adequate re.
lief measure. Aside from affordng
flexible and elastic currency and re
serves, such Il revision, he says.
should bring the banks into more or.
gan2ed 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
forsees Il deficit Of $22 2o56,023, eXclus-
i've Of Panama Canal expenditures, for
the fiscal year ending June 30, 1914,
the first fiscal year of President Will
sens administration. Including the
canal expenses, the deficit is estimat-
ed at $50, 2,730,4 ,455. The canal eXpendi-
tures, he adds, may be paid under the
law from bond sales. The estimated
receipts for that year are $4,000 900
while the ordinary appropriations
are estimated at $132, ,556 ,023, and the
canal expenditures at $30174,423. I'm
Goubtediy, having probable tariff re-
vision in mind, the secretary an
ntunces that these estimates are bas-
et upon present conditions and laws.
For the present fiscal year, ending
June 80, 1913, Mr.. MacVeagh estimates
that there will be Il surplus of $40.
10000, exclusive of Panama Cana!
expenditures, and a deficit of 81 ,S00,-
GEO including the canal transactions .
lie estimates receipts for this year
al ST 100000 and ordinary disburse- I
ments at $G70,o00,o0o.
In connection with financial reform. .
Mr.. MacNeash says the people are
helpless under existing evils. The .
present system never permits free
action at any time. because its Iiabil 4
lty to sudden constraint and restric-
ton is always a part of the nations
financial consciousness.
There is never a time" continues
Ihe secretary Of the treasury, when
there is any long look ahead; except
when we are in the midst of panic
"hen there is a long look of disaster
ahead There is never Il long look Of
ease and convenience anG prosperity
lhead"
In the crop moving season, Mr.
NacNea2h points out. there is spec
al stress and restraint and the sec
'etary found an object lesson in the
conditions during the past autumn
Shen the banks were called upon to
nance the movement of record break
ng crops, necessitatng the employ ;
nent Of nearly all of their available
'esources under our constructing |
ystem."
This relief which is so urgently
leeded by the legitimate business :
nd enterprise of our people," he adds.
is not relief from a financial situa- {
ion built up by financial world +
'sell, but IS from system and con
ftons superinduced by the govern.
cent; and forced upon the business {
ommunity and upon American so, ,
lety. The banking and currency sys, ,
en- is the product of federal law. /,