Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-12-10
WAR PANIC WAS
AvERTEO, ASSERTS
NJ AO00'S REPORT

treasury department to restore confidenc"
and support American business shaken
and weakened by the European war.
"A catastrophe of calamitous proper
tons" said the report, was narrowly
averted. II is n tribute to the economic
strength and souudness Of the country
and to the patriotism of its people in
every class and walk of life that the
shock has been so admirably wthstoo1.
\ panic OF cataclysmc proportions might
easily have resulted and II = had. the TN.
Jury TO the country would have been IN
calculahlo and many wears would have
been required to ovoroome its effects"
BY formation of the 500 0OO, 900 cold
pool. the S135 100000 cotton loan fund.
issues of emergency currency ana the
deposit ~ crop moving mouo, in ro-
tional banks tho situation was ro-
lieved. and confidence was revived. the
report SAYS
Through the prompt and "~cient
action Of the treasury department and
with the cordial md intelligent CO.
operation Of the banking and business
interests of the country. tho DANGER has
been nverted" savs tina report
Confidence has been restored and
in the face OF the world At no time
since the war brokc out has there been,
TO the knowledge of this department.. with
the exception OF n few isolated cases,
failure on the part Of any solvent ra-
ticnal bank to honor IT'S checks In cur
rcncr or money or to meet It's ohlica-
lions. The general revival Of business
throughout the country Is tho best cVi-
denco that confidence has been restored
There Is every reason why the country
should look forward to the future with
confidence so far as it's trade commerce
and industry arc concerned
In spite of drains from Europe where
the nation owed about $3.50 Go,ono at the
outbreak OF the war. Secretary McAdoo
says that the treasury's gold holdings
show reduction of only ssS $685. 7o on
October 81. 1914. compared with holdings
Of sl25S.91S557 on June 30. 1918
ABOUT boarding. MONEY.
Secretary McAdoo referred in some de-
tail to his action against banks which.
he publicly announced. were boarding up
money, niling up reserves and charging
high interest rates without good cause
II was a disaereeabe duty. he said but
one which resulted in determination on
his own part to withdraw government
deposits from banks not using such funds
for the benefit of their communities
This action" he said. had n salu-
tary influence, because ii was followed
by a general loosening up of credits.
and while 1t is not for a moment con-
tended that the Improvement is attrib-
utabl" wholly to the action Of the de
partment it is nevertheless. believed
to have had n beneficial effect upon tho
situation 80
Mr. MCAdoos report is devoted largely
to a review Of the activities of his de-
partment for the fiscal year ending on
June 30, before the war began, but he
included detailed statements of the treas
urys participation in various postwar
problems
The 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 proclama-
ton of the President
Discussing the income tax law the sec
rotary advocates a change In the law so
that persons having a gross income OF
81 600 be required to make a return in
stead of those persons with net in
come of that amount or over,
such an amendment" he says. would
simplify the administration Of the law.
assure more complete returns and ma
terially increase the income tax revenue.
and save an immense amount of expense
to which the government is now sub
jected in maintaining sufficient corps
OF inspectors and investigators to hunt
out the 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 nc
crue July each year.
Although the law did not produce the
revenue expected. the secretary says, ~
has proved satisfactory and explains the
| administration OF a law of that character
has many obstacles to overcome at the
outset and that folks arr unaccustomed
and must he educated to II
Taking the tables OF returns Mr.. Mo-
Adoo infers that there must be many who
failed TO pay the tax.
1T IS clear" says he, chat there were
thousands Of persons who failed alto
gcthor 10 make return a required hv
law. The remedy for this, Of course is 10
have the collectors of internal revenue in
each district make an assessment upon
those. who, IN the opinion of the collector.
arc liable to the tax, and in addition to
make such invcstisations as may be nee
rssary TO determine who in each district
have failed 10 make proper returns The
experience Of the department shows that
many erroneous and faulty returns have
been made" The work of discovering
such cases, he adds is being pushed for
ward with all possible rapidlty,
The collection Of revenue for the nscal
year ended Juno 20. 1911" says Mr.. Nc
Adoo, show the success Of the tariff
act OF October 3, 1919 as a revenue
| measure" He goes on to show that this
act was estimated as the producer of
C1o,WOO0 In its first year and what there
was actually collected 500, 320,oi, That,
however, included nine months under the
new law and three months under the
Payne Aldrich law. He shows that the
corporation and income tax features was
$3.50, ,2S9 or s9.Sn3593 in excess Of the
previous years receipts under the pre-
ceding revenue measure.
THE European war" said the secre-
| tary seriously affected the revenues Of
the government from imports The rev.
| enue from customs for October, 1914. was
| 1921 $50 and for October. 1918, 1t was $50
| l3s049, a decrease of sl3 500, 300 The re-
io a, a. 10, Pol li,asY IA m