The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-12-04
MACVEAGH
IS URGENT
FOR reform
Pr -
Radical Changes IN Banking
System Needed
Treasury Department Foresees
a Deficit n.5
Want a System Which Would
Dc Away With Panics

Washington, Dec. 4.--Strongly urg-
ed and unscientif1c" banking and cur
rency system of the United States,
Franklin MacVeagh, secretary of the
treasury, freely warns congress in his
annual report submitted today, that
the federal government, as long as the
present scheme exists, will be e&clus-
lively responsible for the commercial,
industrial and social disasters which
flow from panics and attack, directly
or indirectly, every home in the ma
ton. ~.... ........ ..-
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 organized CO.
operation and provide for a central
agency through which they could
work together, free of political or
trust control. @-.. 80 IS. .. 's T.
According to the estimates of the
treasury department the secretary
forsees deficit of $22,556,023, exclus-
i've of Panama canal expenditures, for
the fiscal year ending June 80, 1914.
the first fiscal year of President Will
sons administration. Including the
canal expenses, the deficit is estimat-
ed at $50, ,7S0,455. The canal expendi-
lures, he adds, however, may be paid
under the law from bond sales. The
estimated receipts for that year are
$710,0o0,000, while the ? ordinary ap-
preparations are estimated at 1892, :
nd k1,A al A
$50, ,l74,432. Undoubtedly having prob
able tariff revision in mind, the Sec
rotary announces that these estimates
are based upon present conditions and
laws.
For the current fiscal year, ending
June 80, 1918, Mr.. MacVeagh esti-
mates that there will be a surplus of
S40,2oO,00O, exclusive of Panama ca
nal expenditures, and a deficit of ST.
100000, including the canal transac-
tions. He estimates receipts for this
year at $711, ,000, 900 and ordinary dis
bursements at $3.50, 100000. "..,.
In connection with the financial re-
form, Mr.. MacVeagh says the people
are helpless, under existing evils The
present system never permits free ac-
tion at any time, because it's liability
to sudden constraint and restriction is
always a part of the nations tinanci-
al consciousness.
TheTe never was a time," continues
the secretary of the treasury, when
there is any long look ahead; except
when we are in the midst of a panic
when there is long look of disaster
ahead. There is never long look of
ease and convenience and prosperity
ahead .# '
In the crop moving season, Mr.. Mac
Veagh points out, there is a special
stress and restraint and the secretary
found an object lesson in the condi-
tions during the past autumn when
the banks were called upon to finance
the movement of record breaking
crops, necessitating the employment
of nearly all of their available re.
sources under "our constructing sys-
tenn
This relief, which is so urgently
needed by the legitimate business and
enterprise of our people," he adds, sis
not relief from financial situation
built up by 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 laws, and there can
be no relief from it until congress acts.
And this is why congressional action
is urgent"