The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-09
HAD 4 CLOSE CALL.

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life that the shock has been SO adj
mirably withstood. panic OF cAtA-
clysmic proportions might easily nave
resulted and II it had, the injury to
the country would have been tncalcu-
liable and many years would have been
required to overcome its effects.
BY formation of the $100.000,OO0
gold pool the $135, 10000 cotton loan
fund. issues of emergency currency
and the deposit of crop moving money
in national banks, the situation was
relieved, and fidence was revived,
the report says.
Through the prompt and effective
action of the treasury department and
with the cordial and intelligent CO.
operation of the banking and business
interests Of the country. the danger
has been averted." says the report
Confidence Restored.
Confidence has bee, restored and
specie payments have been main
time since the war broke out has
there been. to the knowledge Of this
department, with the exception OF a
few isolated cases, a failure on the
part of any solvent national bank 10
honor it's checks in currency or money
or to meet it's obligations. The gem
eral revival Of business throughout
the country is the best evidence that
confidence has IN restored. There
is every reason why the country
should look forward to the future
with confidence so far as its trade,
commerce and industry are con-
cerned."
In spite of drains from Europe,
where the nation owed about $780,
OOO,0 900 at the outbreak Of the war.
Secretary McAdoo says that the treas
ury's gold holdings show a reduction
of only $83.656,279 on October 81.
1914, compared with holdings OF $1,-
25S.21S.357 on June 80, 1913.
Secretary McAdoo referred In some
detail to his action against banks
which, he publicly announced. were
boarding up m, ney. piling up reserves
and charging high interest rates with
out good cause 1t was disagreeable
duty, he said. but one which resulted
in a 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 a salu-
tory influence. because it was followed
by a general loosening up OF credits:
and while ii is not for a moment con-
tended that the improvement is at
tributable wholly to the action OF the
department it is nevertheless, be-
lieved to have had beneficial effect
upon the situation"
His Recommendations.
Mr. McAdoo's report is devoted
largely to a review of the activities
of his department for the fiscal year
ending on June so, before the war be-
gan. 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-
gress that the war revenue tax Law
should not expire Dec. 81, 1915. but
that its operation should be extended
until the end of the European war.
by proclamation of the president.
Discussing the income tax law, the
secretary advocates a change In the
law so that persons having gross
income of $4,000 be required to make
a return instead of those persons with
a net income of that amount or over.
'Such an amendment" he says,
would simplify the administration of
the law, assure more complete re-
turns and materially increase the in
come tax revenue, and save an I'M
merse amount of expense to which
the government is now subjected In
maintaining a sufficient corps of in
spectors and investigators to hunt out
the people who have failed to make
returns" He recommends also the re-
peal of the provision by which taxes
do not accrue until ten days after the
close of the fiscal year and would
make them accrue July 1 each year.
Although the law did not produce
the revenue expected. the secretary
says, it has proved satisfactory and ex-
plains the administration of a law OF
that character has many obstacles to
overcome at the outset and that folk
are unaccustOmed and must be edu
Gated to it.
Many Failed to Pay.
Taking the tables of returns, Mr..
McAdoo infers that there must be
many who failed to pay the tax.
1T is clear" says he, that there
were thousands of persons who failed
altogether to make a return as re-
CURED by law. The remedy for this.
of course, Is to have the collectors Of
internal revenue in each district make
an assessment upon those, who. In the
opinion OF the collector are liable to
the tax, and in addition, to make such
Investigations az may be necessary to
determine who in each district have
failed to make proper returns. The
experience of the department shows
that many erroneous and faulty re-
turns have been made" The work OF
discovering such cases, he adds, is be-
ing pushed forward with all possible
rapidity.
1.-The collection of revenue for the
fiscal year ended June 80. 1914" says
Mr.. McAdoo, shows the success OF
the tariff act of Oct. 8, 1913, as reve-
nue. measure" He goes on to show
that this act was estimated as the pro-
Queer of $27O.00O,0OO in its first year
and that there was actually collected
$202, 320,014. That, however, includ-
ed nine months under the new law and
three months under the Payne-A1drich
law. He shows that the total raised
under the new law with it's corpora
ton and income tax features was
$363.7O1.2S9 or $9.SO3,5S3 in excess of
the previous years receipts under the
preceding revenue measure.
THE European war;" said the Sec