Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1914-12-10
M'ADOO TELLS OF STEPS
TO RESTORE CONFIDENCE
Catastrophe of Calamitous Proper
tions,He Says, Was Mar
rowly Averted.
ANNUAL REPORT TO CONGRESS
Recommends That War Revenue Tax
Law Be Extended by Presidents
Proclamation Until End of Euro
pean Conflict.

WASHINGTON. December s.-secre-
tary MoAdoo. In his annual report to
Congress to-day, outlined at length
the steps taken by tho Treasury De-
partment to restore confidence and sup
port American business, shaken and.
weakened by the European war.
IA catastrophe OF calamitous, pro-
portions" said the report. was mar
rowly averted. It 10 a tribute to the
economic strength and. soundness of
the country. and to the patriotism of
Its people In every class and walk of
life that the shock has been SO admirably
withstood. A panic Of cataclysmic
proportions might easily have resulted,
and II It had, the injury to the country
would have been incalculable, and
many years would have been required
to overcome Its effects"
pool. the $135,003.o00 cotton loan fund,
Issues of emergency currency and the
deposit of crop-moving money in ma
tional banks, the situation WAS re-
lieved. and confidence was revived, tho
report says,
CONFIDENCE RESTORED
BY PROMPT ACTION
Through tho prompt and effective
action of the Treasury Department and
with the cordial and intelligent CO.
operation OF the banking and business
interests OF the country. the danger has
been averted," says the report.
Confidence has been restored, and
specie payments have been maintained
In the face Of the world. At no time
since the war broke out has there
been. to the knowledge of this de-
partment with the exception of few
Isolated cases, failure on the part
Of any solvent national bank to honor
to meet Its obligations. The general
revival OF business throughout the
country Is the best evidence that con-
fldence has been restored There Is
every reason why the country should
look forward to the future with con-
fidence, so far as its trade, commerce
and industry are concerned"
In spite Of drains from Europe, where
the nation owed about S450,0o0,0o0 at
the outbreak of the war Secretary Nc
Adoo says the that tho Treasury's gold
holdings show reduction of only $751;
666,279 on October 81. 1914. compared
with holdings Of @1.258.218.s57 on June
30, 1913.
Secretary McAdoo referred In some
detail to his action against banks
boarding up money, piling up reserves
and charging high interest rates with
out good cause. 1t was a disagreeable
duty, he said. but one which resulted in
determination on his own part to
withdraw government deposits from
banks not using such funds for Che
benefit Of their communities.
BENEFICIAL EFFECT
UPON THE SITUATION
This action" he said. had a salu-
tory influence. because 1t was followed
by general loosening up OF credits;
and while 1t is not for a moment con-
tended that the improvements Is at
tributable wholly to tho action OF the
department. 1t is. neverth eless, believed
to have had q beneficial effect upon
the situation"
Mr.. McAdoo's report is devoted
largely to review of the activities of
his department for the fiscal year end
Ing on June 80, before the war began,
but he included detailed statements Of
the Treasury's participation in various
postwar problems.
Tho secretary makes several recon-
mendations. He suggests to Congress
that the war revenue tax law should
not expire December 81. 1915. but that
Its operation should be extended until
the end OF the European war, by proc
lamation OF the President.
Discussing tho income tax law the
secretary advocates a change In the
law SO that persons having a gross In
come of $4,000 be required to make a
return instead OF those persons with
net income OF that amount or over.
such an amendment" he says,
would simplify the administration of
the law, assure moro complete returns
and materially increase the income
tax revenue. and save an immense
amount OF expense to which ths gov
eminent Is now subjected in maintain
ing 3 sufficient corps OF inspectors ana
investigators to hunt out. tho people
who have failed to make returns. He
recommends also the repeal of the
provision by which taxes do not accrue
until ten days after the close of the
fiscal year. and would make them ac-
crue July each year.
ADMINISTRATION OF LAW
Is MET WITH OBSTACLES
Although the law did not produce
the revenue expected, the secretary
says, 1t has proved satisfactory, and
explains the administration Of a law OF
that character has many obstacles to
overcome at the outset, and that folks