The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1912-12-05
Of tive United States 10 Avert
Possible Panics Says Sec
rotary MacVeagh.
BIG DEFICIT AHEAD
Far More Elastic Currency
Needed Believes the
Cabinet Officer

WASHINGTON, ID. c., Dec. a.
Strongly urging radical reform Of
the "unreasoned and unscientiac"
banking and currency system Of the
t,llted 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, VIII be exclusively
responsible for the commercial, in
dustrial and social disasters which
flow from palics and attack, di-
rectly or indirectly. every home in
the nation.
The present system promotes ana
develops panics 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 revision, he
says, should bring the banks into
more orga1ized cooperation and
provide for 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 deficit OF $2g, 566, O23, ex-
elusive of Panama canal expendi-
lures, for the fiscal year ending June
30, 1914, the first fiscal year OF
President Wilson's administration
Including the canal expenses the
deficit is estimated at s52,73O,455.
The canal expenditures, he adds,
may he paid under the law from
bond sales. The estimated receipts
for that year are $40, 900,
while the ordinary appropriations
are estimated at v732,556, 0.2S, and
tile canal expenditures at $50, 174,
I432. Undoubtedly having probable
tariff revision in mind, the secretary
announces that these estimates are
based upon present conditions and
laws.
For the current fiscal year, ending
June 80, 1913, Mr.. Macveagh esti-
mates that there will be a surplus
OF $4O,200,OOO, exclusive OF panama
canal expenditures, and a deficit OF
$l,SUO,OOO Excluding the canal
transactions. lie estimates receipts
for TINS year at s711. 100000 and
ordinary disbursements at sC7O,
500 900.
In connection with the financial
reform, Mr.. Macyeagh says the peo-
pie are helpless under existing evils
The present system never permits
free action at any time, because It's
liability to sudden coustraint and
restriction is always part of the
nations financial consciousness.
There never is time" con
tinues the secretary Of the treasury,
when there is any long look ahead;
except when we are N the midst Of
panic when there is long look
Of disaster ahead. There is never a
long look of ease and convenience
ana prosperity ahead"
In the crop moving season. Mr..
lMacVeagh points out, there is a
special 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 urgently
needed by the legitimate business
and enterprise OF our people," he
adds, lis not RELIEF from financial
situation built up by financial
world itself, but IS from system
ana 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 congressional action is
urgent"
Pointing out that the blanks, for
itunately had been able to finance the
crop movement OF the last autumn
unaided by the government, the
secretary says that the anomalous
relation between the treasury de
Ipartment and the general financial
world is a part of the system to be
reformed He dded; Taxing large
Continued on page nye)