Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-03
NJ ADOO EXPLAINS
FINANCIAL UNREST
In First Report to Congress He
Raps Propaganda of
Pessimism."

WASHINGTON, Dec. 3.-Secretary
McAdoo's first report to Congress, de-
livered today. is largely confined to
~ review of the achievements of the
treasury department in matters that
have been of nation wide interest; to
recommendations for increased ap-
propriations for bureaus under his
authority and for legislation which,
de declares, necessary to the better
conduct of the government and the
protection of the people.
The secretary discussed at some
length the subject of currency legis-
lation, reviewing the activities in his
department related to 1t. He speaks
Of an unrest in business circles fol-
lowing the beginning of the special
session, of Congress in April, refers
TO a propaganda of pessimism which,
designedly or not, produced condt-
ton of extreme nervousness and ten
sion," and points to his announce
ment In June that the treasury was
ready to issue $500, 000, 900 of emergency
currency under the Aldrich- Vreeland
act to prevent restriction of credits
ard to ease any situation.
Mr.. McAdoo details the treasury's
offer to ioan TO banks of the country
money to move the fall crops. The
sum of SAG, 500, 900 out of SOC, 900 es
timated to be needed, was apportioned
among the States.
1T WAS essential" says the secre-
tary, that the action of the depart
ment should be non-partisan and non
political; the crops of Republicans,
Democrats and Progressives, and all
other classes of people, had to be
moved, and the earnest effort If the
department was to have the benefits
of this action diffused as widely and
impartially as possible"
After praising the psychological
value of these incidents, the report
continues:
"They demonstrate clearly that any
improvement in our financial system
which will permanently establish con-
fidence. will in itself be an immense
gain, and IL that improved financial
system assures the opportunity to
secure at all times the Necessary
funds and credits to meet the eX-
panding and legitimate needs of the
commerce and industry of the coun-
try, it will be an achievement of en-
during benefits.
"These incidents also show conclL-
sively the enormous value of an al
truistic government agency in the
financial affairs of the currency. So
long. as the government has the power
to intervene i'll u beneficeEt and an
selfish way, the danger of panics and
of unjust practises will be largely,
If not wholly, destroyed. This Is one
of the chief objects sought in the
proposed reformation and reorganiza-
ton of our banking and currency sys-
tenn"
Secretary McAdoo estimates that
the revenues for the fiscal year ex-
elusive of postoffice receipts will be
$72S, 900, 900, only $S,0O0O00 less than the
estimates for the fiscal year 1914.
To make that total he expects the
customs to bring In $249, 600, ordi-
nary internal revenue $315, 100000, and
the income tax $105,00 900, of which
| $4,000 900 is to come from corpora
tions, the remainder from individ-
uals. From sales of public lands he
expects to cover into the treasury
| SO, 100000, and from miscellaneous
sources 6,000,0 900. He expresses the
| belief the ordinary receipts for 1915
will exceed the disbursements suffi-
GENTLY to pay out about $26,000,00(
from the treasury's general fund fol
| the Panama canal.
Expenditures for 1915 will exceed
the governments total income by
$73, 1851, TIT, according to an offlcia
statement today by the appropriation
committees of the House and Senate
based on Secretary McAdoos esti.
mates. AS worked out by the con.
gressional committees, the 1915. ex.
penditures will amount to $1,10S,6S
TIT, including postal appropriations
while they estimate the revenues al
81, OBS, 100000, including postal receipts
BY excluding, however, a $60,717, OOt
sinking fund appropriation to NEE
the public debt and s26, 1926, 9S5 for the
Panama canal, the latter to be re.
paid from the sale of bonds, the com
mittees expect a surplus of revenue.
over expenditures of s13, 362,207.