Evening star., 1913-12-03
Tells, in Report to Congress,
of Successful Efforts to
Avert Panic.
RESOURCES OF THE U. S.
STAND BACK OF BUSINESS
Says Unrest and Propaganda of
Pessimism' Produced Condition
Of Extreme Nervousness.


gress, delivered today, is largely con-
fined to a review Of the achievements of
the Treasury Department in matters that
have been of nationwide interest, to
recommendations for increased appropria-
tions for bureaus under his authority and
for legislation which he declares neces-
sary to the better conduct Of the gov
ernment and the protection of the peo-
pie.
The Secretary discusses at some length
the subject of currency legislation, re-
viewing the activities in his department
related to it. He speaks of an unrest
in business circles following the begin
April refers to a propaganda of pes
simism which. designedly Or not. pro-
duced a condition of extreme nervousness
and tension" and points to his announce
nent in June that the Treasury was
ready to issue $5OO.OOO,O COO of emergency
currency under the Aldrich- -Vreeland act
to prevent restriction Of credits and to
ease any situation.
Aid in Moving Crops.
Mr. McAdoo details the Treasury's offer
to loan to banks Of the country money
to move the fall crops. The sum Of
SAG. .5GOOOO out Of $JO,OOOOOO estimated to
be needed was apportioned among the
states
1T was essential says the Secretary.
that the action of the department should
be non-partisan and non n-polit.cal: the
crops of republicans democrats and pro-
gressives and all other classes OF peo-
pie had to be moved, and the earnest
effort of 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 conf
dence will in itself be an immense gain.
and if that improved financial system as.
sures the opportunity to secure at All
times the necessary funds and credits
to meet the expanding and legitimate
needs Of the commerce and industry or
the country it will be an achievement OF
enduring benefits.
Preventative Of Panics.
"These incidents also show con-
clusively the enormous value of an al
truistic governmental agency in the
financial affairs Of the country. So
long as the government has the power
to intervene in a beneicent and unset
fish way the danger of panics and of un-
wholly, destroyed. This is one of the
chief objects sought in the proposed
reformation and reorganization of our
banking and currency system Ihe peo-
pie of the country are to be cOngratu
lated upon the early prospect of sound
legislation on this vitaily important SUD-
ject. Should the Congress enact the
fundamentals Of the pending measure II
is believed tnat permanent protection Will
be provided against recurring CONNER
cial crises, and that adequate facilities
will be created for that legitimate and
sound expansion of credits so vital to
the prosperity of our great and growing
country.
OF the new tariff act Secretary McAdoo
SAYS it has not been II force sufficient
length of time to make possible an accu-
rate estimate of its ultimate revenue
producing powers. He asks congress 70
impose a nominal tax of l per cent proof
gallon on all alcohol withdrawn for de-
naturation-and Legislation requiring
every dealer in leaf tobacco to make an
inventory of stock January l OF each
year, and make a report OF his transac-
tions quarterly or monthly, and that
every dealer be required 10 give bond
Huge Loss of Revenue.
The present oleomargarine law is de-
clared to be unsatisfactory, and the gov
ernment is said to lose more taxes from
illicit practices in oleomargarine than
through moonshine stills. The difference
in the tax on colored and uncolored
"oleo" is held responsible for the loss,
and Congress is asked to imrose nat
nominal tax without any difference Tor
color, with provision for indlvldual
stamped original packages OF certain
sizes adequately marked and safeguard
ed. The law governing the sale OF adul-
terated butter is declared to have brought
about unfortunate conditions through the
difficulty Of it's just enforcement.
Among his principal recommendations
to Congress the Secretary placed the fol-
lowing:
Enlargement of the public health serv-
ice and a closer cooperation with state
authorities to prevent and stamp out
epidemics of disease
Building of four revenue cutters, LOT
need of which, the Secretary points out,
the service is seriously crippled.
Consolidation of the revenue cutter and
life-saving services into one organiza-
ton to be known as the coast guard.
Such a consolidation, the Secretary says,
would increase the efficiency of each serV-
ice with the idea that the new coast
serve in time of war. The increase In
cost would be about 100000. In that
connection the Secretary also recommends
passage of legislation for the retirement
of life savers on pension, and declares
that unless some such measure is made
law the efficiency Of the service Will be
impaired and it will become increasingly
difficult to obtain good men. He gives
point to his argument by showing that
the revenue cutter and life-savins serv-
ices saved 4,423 lives In 1913 and salvaged
property worth more than $16,OOUO0O.
For Relief in Floods.
Establishment Of revenue cutter head
quarters at Louisville or Cincinnati, at
st. Louis or some other point on the
upper Mississippi and at Helena, Ark, or
Vicksburg, Miss, is urged as measure
for the saving Of life i'll the foods time
in the Ohio and Mississippi valley. Three
light draught cutters fo cost about 500