The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1914-12-09
Great CALAMITY
AVERTED BY u. s.
Continued From First Pare.

| Small Reduction Of Gold Holdings
In spite of drains from Europe,
where the nation owed about $780,
100000 at the outbreak of the war,
Secretary McAdoo says that the Treas
ury's gold holdings show a reduction
of only sSS,656,279 ON October 81,
1914, compared with holdings of ST.
25S,218,357 on June 30, 1918.
| Secretary McAdoo 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 disagreeable
duty, he said, but one which resulted
in a determination on his own part to
withdraw government deposits from
banks not using such founds for the
benefit of their communities.
This action, he said, chad a
salutary influence, because it was fol-
lowed by general loosening up of
credits; and while it is not for a mo-
ment contended that the improvement
is attributable wholly to the action of
the department it is, nevertheless, be-
lieved to have had beneficial effect
upon the situation
Should Extend War Tax
Mr.. McAdoo's report is devoted
largely to review of the activities of
his department for the fiscal year end
ing on June 80, before the war began,
but he included detailed statements of
the Treasury's participation in various
postwar problems.
The Secretary makes several recon-
mendations. He suggests to Congress
that the war revenue tax law should
not expire December 81, 1915, but that
it's operation should be extended until
the end of the European war, by proc
lamation of the President.
Income Tax Law Amendment
Discussing the income tax law, the
Secretary advocates change in the
law so that persons having a gross in
come 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 returns
and materially increase the income tax
revenue, and save an immense amount
of expense to which the government is
now subjected in maintaining suffi-
cient corps of inspectors and investiga-
tors to hunt out the people who have
failed to make returns He recon-
mends also the repeal 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
each year.
Although the law did not produce the
revenue expected, the Secretary says, it
has proved satisfactory and explains
the administration of law of that
character has many obstacles to over
come at the outset and that folk are
unaccust joined and must be educated to
it. Taking the tables of returns, Mr..
McAdoo infers that there must be many
who failed to pay the tax.
Thousands Failed to Make Return
at is clear" says he, "that there
were thousands of persons who failed
altogether to make return as required
by law. The remedy for this, of course,
is to have the collectors Of internal
revenue in each district make an assess
ment upon those who, in the opinion of
the collectors, are liable to the tax,
and, in addition, to make such investi-
cations as may be necessary to deter
mine WHO Ill tdCh ulobilSb uoNO IuiAob
to make proper returns. The expert
ence of the department shows that
many erroneous and faulty returns
have been made The work of dis
covering such eases, he adds, is being
pushed forward with all possible rapid
ity.
Success of the Tariff Act
''The collection of revenue for the
fiscal year ended June 80, 1914 says
Mr.. McAdoo. "show the success of the
tariff act of October 8, 1913, as a
revenue measure.' He goes on to show
that this act was estimated as the pro
ducer of $270,000,000 in its first veal
and that there was actually collected
S292,320,014. That, however, includ
ed nine months under the new law ano
three months under the Payne Aldrict
law. He shows that the total raised un
der the new law with its corporation
and income tax features was 1858,
7O1,289, or $9,S03,593 in excess OF
the previous year s receipts under the
preceding revenue measure.
, War Affected the Revenues
''The European war; said the Sec
retary, seriously affected the revenues
of the government from imports. The
! revenue from customs for October
: 1914, was $16,271,S29, and for Oc
tober, 1918, it was $90,138,049, {
decrease of $13,S66,220. The reduc
ton is solely due to the falling off il
importations. The estimate made 10y
the department indicated a yearly de
crease of between $60,000,000 anC
$10O, 100000. 1t is obvious that these
estimates cannot he accurate as no one
can forecast the course of events while
the titanic struggle in Europe is il
progress. To keep the treasury IL
strong condition in these abnorma
times was obviously the first duty Of
the hour. Upon it largely depended the
safety of business and finance in thi'
country"
Facilities of Parcel Post
Mr.. McAdoo again recommends tt
Congress the consolidation of the Rev
enue Cutter and Life Saving Services
to bear the name "Coast Guard Serv
ice." lie urged the building of two
more revenue cutters and the appro
priation for leprosarium for the use Of
the Public Health Service.
He announced that the Treasury De
partment is making study of THE ia
cilities of the parcel post in the trans
portation of money and securities be
tween the treasury, sub-treasuries anc
banks. He points out that the tota
payments for such service to express
companies during the last three years
have averaged $375,000 and expresses
the hope that plan for the use of tht
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