New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-05
MACYEAGH OUTLINES
FINANCIAL REFORM
Urges Central Agency and TAX.
ing Treasury Department Out
of Banking Business.
PRESENT SYSTEM EVIL
Need of Flexible Currency and
Reserves Pointed Out
Deficit in Wilson's
First Year Seen.

Washington, Dec l.-Strongly urging
radical reform OF the 'unreasoned and
unscientifc" banking and currency sys-
tenn Of the United States, Franklin Mac
Veash. Secretary OF the Treasury freely
warns Congress in his annual report sub
| mitted to-day that the federal government
as long as the present scheme exists will
be exclusively responsible for the CON-
mercial. Industrial and social disasters
which flow from panics and attack. al
rectly or indirectly, every home In the
nation.
The present system promotes and de-
velops panics, and legislation is urgent,
declares Mr.. MacVeagh. in outlining his
idea OF the necessary general provisions
Of an adequate relief measure. Aside from
affording flexible and elastic currency and
reserves, such a revision, he says, should
bring the banks into organized co-opera-
ton and provide for a central agency
through which they could work together,
free Of political or trust control
According to the estimates of the Treas
ury Department. the Secretary foresees
deficit Of so. 5000, exclusive OF Pan
anna Canal expenditures, for the fiscal
year ending June 30, 1914, the first fiscal
year Of President Wilson's administration.
Including the canal expenses, the dencit
is estimated at $50, 49, 55. Tho canal tx
penditures. he adds. however, may be paid
under the law from bond sales. The es-
timated receipts for that year are $Il0,-
000, 900. while the ordinary appropriations
are estimated at s732. 55S,o23 and the canal
expenditures at So17i.432. Undoubtedly
having probable tariff revision In nina,
the Secretary announces that these es-
Inmates are based on present conditions
and laws.
Surplus for Current Year.
For the current fiscal year. ending June
30. 1913. Mr.. MacVeagh estimates that
there will be a surplus of $40 20O,oO ex-
elusive OF Panama Canal expenditures.
and deficit of 81 $4,000 including the
canal transactions. lie estimates receipts
for this year at S7li. oo0ooo and ordinary
disbursements At 1910 10000.
In connection with financial reform Mr..
Macveagh says the people are helpless
under existing evils. The present system
never permits free action at any time. be-
cause its liability to sudden constraint
and restriction is always part OF the
nations financial consciousness.
There never is a time" continues the
Secretary, when there is any long look
ahead, except when We are in the midst
of a panic, when there Is a long look OF
disaster ahead. There Is never long
look OF ease and convenience and pros
perity ahead"
In the crop-moving season, Mr.. Mac
Vcagh points out, there Is special stress
and restraint He finds an object lesson
In the conditions last autumn, when the
banks were called upon 10 finance the
movement OF record-breahng crops, ne
cessItatins the employment OF nearly all
their available resources under our con-
stricting system"
This relief, which is so urgently needed
by the legitimate business and enterprise
OF our people," he adds, rs not reher
from a financial situation built up oy
financial world Itself. but is from sys-
TEN and conditions superinduced by the
government and forced upon the business
community and upon American society
The banking and currency system Is inc
product OF federal law, and there can De
no relief from It until Congress acts. And
this is why Congressional action Is Ut
gent"