Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1914-12-10
GREAT catastrophe
NARROWLY AVERTED
M'ADOO TELLS or STEPS TO
PREVENT A WAR
PANIC.
TRIBUTE TO COUNTRY
All Coopcratcd to Keep TIP the
Credit of This
Country.

WASHINGTON. Dec. o. Secretary
McAdoo In his annual report to con.
grcss today outlined at length th'
steps taken by the treasury depart
mcnt 10 restore confidence and sup.
port American business, shaken and
weakened hy the European war.
"A catastrophe of calamitous pro-
portions said the report was mar
ruWiy aNcrtcd II is q tribute 10 IN,
economic strength aud soundness OF
the country ana To the patriotism "l
its people in every class and walk of
life that the shock has been so ad-
mirably Wlthstood A panic of cat
aclysmic proportions might easily
have resulted and If II had the INJURY
TO the country would have been M
calculable and many years Woul1
have been required to overcome l''
effects
By formation of the SlOO,O00,0O
gold pool, the $l35,OO0,0OO cotton
loan fund, issues Of emergency cur
rcncy and the deposit Of crop-moNlh'
money in national banks, the silua
ton was relieved, and confidence was
revived, the report says
Through the prompt and etiec-
tive action of the treasury depart
Hgent 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 oul
has there been, to the knowledge ol
this department, with the exception
of few Isolated eases, a failure on
the part Of any solvent national DahN
to honor its checks In currency or
money or to meet its Obligations. me
general revival of business through
out the country is the best evidence
that confidence has been restored
There is every reason why the coun-
trv should look forward to the fu-
ture with confidence so far as IT'S
trade, commerce and industry are
concerned
In spite of drains from Europe
where the nation owed about $45O'-
00O. GOO at the outbreak of the war
Secretary McAdoo says that the tro's-
trys gold holdings show reduction
of only $S3,656,279 on October 81,
1914, compared with holdings 81
S1,25S.21S,357 on June 30 1913.
Secretary McAdoo referred in some
detail to his action against banks
WllCn, ne DQDlltlN dIllbhhNNNi W.
boarding up money. piling up reserves
and charging high interest rates
without good cause. 1t was a dls-
agrceab BILE duty, he said, but one when
resulted in a determination on his own
part to withdraw government deposiIs
from banks not using such funds tol
the benefit of their communities
This action" he said, mad Sai 70
utory influence because it was tolc,
lowed by a general looscning up OF
credits: and while it is not for n
moment coutcndcd that the improve
ment is attributed wholly to the ac-
tior of the department IT is, never
thcless, believed to have had bene-
fic.al effect upon the situation
Mr.. MCAdoo's report is devoted
largely to review of the activities OF
his department for the fiscal year
ending on June 80, before the war
began, but he included detailed state
ments of the treasury's participation
in various postwar problems.
The secretary makes several rec
concentrations He suggests to con-
gross that the war revenue tax law
should not expire December 81, 1919,
but that it's operation should be eN-
tended until the end of the European