The Barre daily times. (Barre, Vt.) 1897-1959, 1914-12-09
Says Sec. McAdoo as He Ex-
plains His Departments
Work to Ward 1t Off
ACKNOWLEDGES AID OF
BANKS AND BUSINESS
Says the Income Tax Law
Should Include Gross In
comes Of $4,000

Washington, d. c., Dec. 9.--Seeretary
McAdoo in his annual report to Congress
] to-day outlined at length the steps taken
by the treasury department to restore
confidence and support American bus
mess shaken and weakened by the Euro
pean war.
"A catastrophe OF calamitous proper
| tions,' said the report, "was narrowly
averted. 1t is 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 if it had, the in
jury to the country would have been in
calculable and many years would have
been required to overcome its effects"
BY formation of the Sl00,000,000 gold
pool the Sl35,000000 cotton loan fund.-
issues of emergency currency and the de-
posit of crop moving money in national
banks the situation was relieved, and
confidence was revived, the report says.
Through the prompt and effective ac-
tion OF the treasury department and with
the cordial and intelligent cooperation of
the banking and business interests of the
country. the danger has been averted,'
says the report. Confidence has been re-
stored 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 depart
ment. with the exception of a few isolat-
ad fg ft,tra mn ha re nf
solvent national bank to honor its checks
in currency or money or to meet its OBJ
legations. The general revival of bus
mess throughout the country il the best
evidence that confidence has been re-
stored. There is every reason why the
country should look forward to the flu
ture with confidence so far as its trade,
commerce and industry are concerned"
In spite Of drains from Europe, where
the nation owed about S450. 900 900 at the !
of the war, Secretary McAdoo |
says that the treasury's gold holdings |
show reduction of only $ss,656,279 ON /
Oct. 81, lol4, compared with holdings OF |
81 ,25S, ,2ls,357 on June 30, 1918.
McAdoo's Painful Duty.
Secretary McAdoo referred in some de,
tail to his action against banks which he
publicly announced We're boarding up
money, piling up reserves and charging
high interest rates without good cause
II was a dsagreeable 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 chad Statutory
because it was followed bv a
general loosening up of credits, and while
[ Ia not for moment contended that the
Improvement is attributable wholly 10
he action of the department. it is, new.
,rtheless, believed to have had benefi-
.ial effect upon the situation"
Mr.. McAdoo's report is devoted largely
o a review of the activities of his de.
,artment for the fiscal year ending on
Iune 30, before the war began. but he in ]
luded detailed statements OF the treas.
iry's participation in various postwar
lroblems.
Some Recommendation.
The secretary makes several recon-. :
He suggests 10 Congress I,
hat the war revenue tax law should not I
Xpire Dec. 81, 1918, but that its opera y
ion should be extended until the end Of I
be European war, by proclamation OF ]
De president IL
Discussing the income tax Law the sec
ptary advocates a change in the law 20
hat persons having a gross income Of
3 600 be required to make a return in :
tead Of those persons with a net income
that amount or over
such an amendment" be SAYS. would
implfy the administration Of the law -
ssurc more complete returns and mate a
iaily increase the income tax revenue. 4
nd save an immense amount Of expense :
p which the government is now subject a
in maintaining q sufficient corps Of a
lspeciors and investigators % hunt out =
b. people who have failed 60 make re-
1rns." He recommends also the rerpal !,
the provision By which taxes DO not !,
crrue uutl % DAYS after tire close Of TIE !,
seal year and would make them accrue
ulF : each year.
Although the law aid not rraf1es tl,e
venue expected. the secretary sHVA 4
be proved satisfactory and explains ti,a y
lministratiuu of lnw ~ that eharnr
y has maHv obstacles 10 Overcome ID
w. oHiset ard that folks are unaerus- 4.
usea aul rrust D. n8neateH ta IL