The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-12-04
Says Banks Should Work Togeth-
er Through an unhampered
Central Agency
ANNUAL REPORT IS SUBMITTED

Washington, Dec. l.--Strongly urg
ing radical reform of the "unreason
ed and unscientitic" banking aud cur
roncy 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
llesent scheme exists and social dis =
asters which tlow from panics and
attack. directly or indirectly. every
lomc in the nation.
The present system promotes and
develops panics and legislation Is urg-
cnt, declared Mr.. MacNcagh, i'm out.
lining his idea of the necessary gen-
cral provisions of .an adequate relief
measure Aside from affording nex-
lille ana elastic currency and reserves,
such revision, he says, should bring
the banks into organized co-opcration
and provide for "A central agency
through which they could work to-
gcthcr. free of political or trust con-
trOl.
Foresces a Big Deficit.
According TO the estimates of the
treasury department, the secretary
fureSces a deficit of So. O23, cN
elusive uf Panama Canal expenditures.
for the fiscal year ending June 80, 1914
The first fiscal year of President viii
sons admins tration. Including the
canal expenses. the deficit is CStimat -
cd at $52,I30,i55. The canal eXpcndi
lures, he adds. however. may be paid
under the law from bond sales. The
estimated receipts for that year are
l0,0OJ.0O0, while the ordinary ap-
preparations are estimated at S73g.
''C.O23 and the canal expenditures at
$3o,lii,i32. Undoubtedly having prob
able tariff revision in mind, the Sec
rctary announces that these estimates
are based upon present conditions and
laws.
For the current fiscal year, ending
June 30. 1919 Mr.. MacNeagh csti-
mates that there viii be a surplus Of
$40, 300,000 exclusive of Panama cam
az expenditures, and q deficit of ST.
100000 including the canal transac-
iions. He estimates receipts for this
Year at $7tt.0OOOO0 aud ordinary dis
hursements at &G70. 500 OO0
People Arc Helpless Now.
In connection with financial re
form, Mr. MacNeagh SAYS the people
are helpless under existing evils. The
present system never permits free ac-
ton at any time because its liability
TO sudden constraint aud restriction
rs always a part of the nations imam
cial consciousness.
There never is time" continues
the secretary of the treasury, when
here is amy long look ahead; except
when we are in the midst of a panic
when there Is u long look of disaster
ahead. There is never a long look of
case and convenience aud prosperity
ahead"
In the crop moving season, Mr.
MacNcagh points out, there is - spc-
Cial stress and restraint ana the see
rotary found an object lesson In the
when the banks were called upon to
finance the movement of record
breaking crops, necessitating the en-
ployment of nearly all of their avail
able resources under "our construct
ing system"
This relief which is SO urgently
needed by the legitimate business and
enterprise of four people he adds, us
not relief from a financial situation
built up by "a financial world Itself
nut Is from "a system and conditions
superinduced by the government; ana
forced upon the business community
and upon American society. The
banking and currency system is the
product OF federal acts. And this IS
why Congressional action is urgent.
Central Agency Suggested.
Pointing out that the banks FORUM
ately had been able to finance the crop
movement of the past autumn unaid-
ed by the government the secretary
says that the anomalous relation be-
tween the treasury department and
the general financial world is part
oi the system to be reformed. He add
ed: Taking large sums of actual
money out of the ordinary financial
use ana locking it up as a dead mass
IN the vaults Of the treasury Us