Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-12-10

Washington, December 9.-Secretary
MeAdoo in his annual report to Con-
gress 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.
"A catastrophe of calamitous pro-
portions" said the report, was mar
rowly averted 1t is 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 adj
mirably withstood. A panic of cata-
clysmic proportions might easily have
resulted and if 1t had, the injury to
the country would have been incalcu-
liable and many years would have been
required to overcome its effects
By information of the $100,00O,000 gold
pool, the $135, 100000 cotton loan fund,
issues of emergency currency and the
deposit of crop moving money in ma
tional banks, the situation was re-
lieyed, and confidence was revived,
the report says.
Through the prompt and effective
action of the Treasury Department
and with the cordial and intelligent
cooperation of the banking and bust
ness interests of the country, the dam
ger has been averted, says the report.
Confidence has been restored and
specie payments have been maintained
in the face of the world. Al no time
since the war broke out has there been,
to the knowledge of this department,
with the exception of few isolated
cases, a failure on the part of any SOL
vent national bank to honor it's checks
in currency or money or 10 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 confidence so far
as it's trade, commerce and industry
are concerned"
In spite of drains from Europe,
where the nation owed about $3.50, 000,-
900 at the outbreak of the war, Sec
rotary McAdoo says that the Treas
ury's gold holdings show reduction of
only sS3,656,279 on October 81, 1914,
compared with holdings OF $1,25S 2lS,357
on June 30, 1913
Secretary MeAdoo referred in some
detail to his action against banks
which, he publicly announced, were
boarding up money. piling up reserves
and charging high interest rates with
out good cause 1t was a disagree
able duty, he said, but one which re-
suited in 9 determination on his own
part to withdraw government deposits
,,t, F,.r DO for
the benefit of their communities.
This action he said, had a saiu-
tory influence, because it was followed
by general loosening up of credits
and while il is not for a moment con
tended that the Improvement is attri-
butable wholly to the action of the de
partment it is neNertheless. believed
to have had d banefcial effect upof
the situation" a1g
Mr.. McAdoosl report is devoted
largely to a review of the activities OF
his department for the fiscal year en-
ing on June so, before the war began
but he included detailed statements
of tie Ireasury's participation II
various postwar problems.
The Secretary makes several rec
concentrations. He suggests to Con
gress that the war revenue tax Law
should not expire December 81, 1915
but that its operation should be eX-
tended until the end of the European
war, by proclamation of the President
Discussing the income tax law thu
Secretary advocates a change IN thu
law so that persons having a gros:
income of $4,000 be required to make
a return instead of those persons witt
a net income of that amount or over
such an amendment he says
would simplify the administration o
the law, assure more complete returns
and materially increase the income ta'
revenue, and save an immense amour
of expense to which the government
is now subjected in maintaining
sufficient corps of inspectors and in
vestigators to hunt out the peopl'
who have failed to make returns.
He recommends also the repeal of thu
provision by which taxes do not accrue
until ten days after the close OF th'
fiscal year and would make them ac
crue July ] each year.
Although the law did not produce th'
revenue expected, the Secretary says
it has proved satisfactory and explains
the administration of law of tina
character has many obstacles to over
come at the outset and that folk ar
unaccustomed and must be educated
to it. Taking the tables of returns Mr.
McAdoo infers that there must 81
many who failed to pay the tax
1T is clear" says he, that Their
were thousands of persons who failet
altogether to make a return as re
quired by law. The remedy for this
of course, is to have the collectors o
internal revenue in each district max
an assessment upon those, who, il
the opinion of the collector are liabl
to the tax. and in addition, to maxi