The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1912-12-12
IS PRESSING NEED
! FOR BANK REFORMS
Secretary Mcveagh, In Report,
Holds Federal Government to
Blame for Panics.

Washington, Dec. 9~.-Strongiy urg-
ing radical reform Of the "u~nreasoned
and unscientific" banking and curren-
cy system of the United States, Frank
hn MacVeagh, secretary of the treas
ury, freely warns congress in his an
nual report submitted that the
federal government, as long as the
present scheme exists, will be exclu-
sively responsible for the commercial.
industrial and social disasters which
flow from panics and attack, directly
or indirectly every home in the na-
The present system promotes and de-
velops panics and legislation is urgent.
declared Mr.. MacVeagh, in outlining
mis- idea OF the necessary general pro
visions of an adequate relief measure.
Aside from affording flexible and elias
tic currency and reserves, such q re-
vision, he says, should bring the banks
into organized corporation and pro-
vide for a central agency through which
they could work together, free OF po-
Htical or trust control 81
Foresees Deficit.
According to the estimates OF the
treasury department, the secretary
foresees a deficit OF $22. $50, 023, exclu-
sive OF Panama canal expenditures, for
the fiscal year ending June 80, 1914.
the first fiscal year of President VIII
sons administration. Including the ca
nal expenses, the deficit Is estimated at
$52, 730,455. The canal expenditures, he
adds, however, may be paid under the
law from bond sales. The estimated
receipts for hat yea are $4,000 900,
while the ordinary appropriations are
estimated at 1882, $50, 023, and the canal
expendituresat $30,174,432. Undoubtedly
having probable tarif revision in mind.
the secretary announces that those es-
Inmates are based upon present con-
ditions and laws. ~.
For the current fiscal year, ending
June 30, 1913, Mr.. MacVeagh estimates
that there will be q surplus Of $40,-
200, 600, exclusive Of Panama canal ex-
p~enditures, and a deficit Of $1,800.00o
including the canal transactions. He
estimates receipts for this year at WILL
000, 900 and ordinary disbursements at
$3.50, 500, 900. g.
In connection with financial reform.
Mr.. MacVeagh says the people are
helpless under existing evils. The pres
ent system never permits free action
at any time, because its liability to
sudden constraint and restriction Is al
ways a part OF the nations financial
consciousness. @&M.& ~,
There never is q 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 a long look of disaster
dIlCdus L11ClS 10 AISNVA " ISA5 " ~
Ease n convenience and prosperity
ahead" 81
In the crop moving season, Mr.. Mac
Veagh points out. there is q 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, ne
cessitating the employment of nearly
all Of their available under
our constructing system"
Law Held Defective.
This relief, which is so urgently
needed by the legitimate business and
enterprise of our people" he adds, rs
not relief from O. financial situation
built up by a financial world itself, but
Is from a system and conditions super
induced by the government. and forced
upon the business community n upon
American society. The banking and
currency system is the product OF red
eral law. And there can be no relief
from it until congress acts. And this
Is why congressional action Is urgent
A relief measure reforming the bank
ing and currency system, the secretary
declares, must include, among its nee
essay features, provisions for never
failing reserves and never failing cur
rency, and for the perfect elasticity
and fexibility of both; for the perman-
Gil oIBdIllAdlAOll III OiSdiAASS" .So-Op-
Grafton of the banks, which are now
suffering and causing the nation to suf-
fer by reason of their unorganized
state: for a central agency, to repre-
sent and act for the organized and CO.
operative banks-this agency to be Sc
curely free from political or trust CON-
troll, but with the government having
adequate and intimate supervision OF
IT.: for independent banking units-so
independent that no n bank can be
owned, controlled or shared In in any
degree, directly or indirectly, by any
other bank: for the equality of all
banks, national or state. both. as to
standard and as to f~unctions-so that
every requirement made of q national
bank must be complied with equally
by a state bank, and every function or
privilege enjoyed by a state bank shall
be enjoyed by a national bank; for the
utilization and the 1uidity of bank as
sets: for the scientific development Of
exchanges-domestic and foreign; for
foreign banking as IN adjunct of our
foreign commerce.; ant for taking the
treasury department out of the bank
ing business" -
Discussing customs reforms, Secre-
tary MacVeagh says that widespread
exposures by the present administra-
tion Of frauds have resulted in an an
nual saving to the government OF more
than SO. 000, 900, distinctly an under
estimate"