The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1914-12-11
HOLDING UP BUSINESS
SAMUEL'S BIG HELPER
How Country Averted Serious
Financial Trouble
ALI IS TOLD BY Mr.. MeAD0o
Secretary Of the Treasury Submitted
Lengthy Report TO Congress; His
Recommendations
IAssoelated Press pIspateh.l

lASSofiItc1 l-FeSs lHSp1tCN-I
Washington, December 9.-Secre.
tary McAdoo in his annual report to
congress today outlined at length the
steps taken by the treasury depart.
ment TO restore confidence and sup
port American business. shaken and
weakened by the European war
~ catastrophe OF caiamitous pro-
portions" said the report, was mar
rowly ayerted. II Is a tribute TO the
economic strength and sOundness
of the country and TO the patriotism
Of It's people in every class and walk
Of life that the shock has been so
admirably wlthstood 4 panic OF cat
aclysmic proportions might easily
have resulted and II II had, the in
Jury to the country would have been
incalculable and many years would
have been required to overcome its
effects"
That BIG Gold Pool.
by formation OF the $4,000. 900
gold pool. the s135. 900, 900 cotton loan
fund. issues OF emergency currency
and the deposit OF crop moving
money In national banks. the situa.
iIon was relieved. and confidence
was revived, the report says.
Through the prompt and effective
action ofs the treasury department
and with the cordial and intelligent
cooperation Of the banking and busl-
ness interests Of tho country. the
danger has been avefted." says the
report. coincidence has been re.
stored and specie payments have
been mainland In the face OF the
world. AT no time since the wa
broke out has there been. TO the
knowledge OF this department. with
the exception OF few isolated cases
n failure on the part Of any soly-
ont national bank 10 honor it's checks
in currency or mony or to meet its
obligations. The general revival OF
business throughout the country Is
the best evidence that confidence
has been restored. There Is every
reason why the country should look
forward TO the future with conf.
denee so far as it's trade, commerce
and industry are concerned"
Reduction OF Gold.
In splits OF drains from Europe.
where the nation owed about $3.50.
treasury's gold
100000 at the outbreak of the war.
Secretary McAdoo says that tho
treasury's gold holdings show re-.
duction or only ss3.G56.279 On Octo.
her 81, 1914. compared with hold.
ings OF s1.25s.21s,s57 on June 30.
1913. u.
Secretary McAdoo referred In
some detail TO his action against
banks which. he publicly announce
we're boarding up money. pillng up
reserves and charging high inter
csts rates without good cause. u
was a .disagreeable duty he said
but one which resulted in a deter.
mination on his own part to with
draw government deposits from banks
not using such funds for the bene.
NJ. OF their communities.
Had ssIutsry Effect.
"This action" he said. had sal.
ntafy influence. because II was fol.
lowed by n general loosening up of
credits; and while Il is not for a
moment commended that the improve
ment Il attributable wholly TO the
action of the department II is. never
theless. believed TO have had ben
efctai effect upon the situation"
Mr.. McAdoo's report Is devoted
largely 20 review OF the activities
of his department for the, fiscal
year ending on June 80. before the
war began. but he included detailed
statements OF the Treasury's partici-
patton IN various postwar problems
The secretary makes several rec
concentrations. lie suggests to Con-
gress that the war revenue tax law
should not expire December 81,
1915, but that IFS operation should
be extended until the end OF the
European war. by proclamation Of
the president.
income Tax Law.
Discussing the income tax law the
secretary advocates change in the
law so that persons having gross
incomes OF 5000 be required TO make
return instead OF those persons
centinned on Page Two