The chronicle=news., 1914-12-09
M'ADoO'S REPORT

ncalcuiublc ana many years would
have been required to overcome its
effects"
BY formation OF the 100000. 0Go
gold pool. the $l@5.0Q0.uG0 cotton
loan fund. issues of emergency cur
rcEcy and the deposit of crop moving
money i'll national banks. the situa-
ton was relieved, and confidence was
revived, the report says.
Through the prompt and effective
action of the treasury department
and with the cordial and Intelligent
corporation OF the banking and bust
ness interests Of the country, the
DANCE has been averted, says the
report.
Confidence has been restored and
specie payments have been maintain
Ell in the face of the world. At no
time since the war broke out has
department. with the exception of Il
few isolated cases, failure on the
part of any solvent national bank to
honor its checks in currency or
money o. to meet its obligations.
The general revival OF business thru
out tile country is the best evidence
that confidence has been restored
There is every reason why the coun-
try should loot, forward to the flu
tllre with confidence so far rs its
trade, commerce and industry are
concerned.
In spite of drains from Europe,
where the nation owed about 81 10.-
600. 900 at the out break of the war.
Secretary McAdoo says that the
trcasury's gold holdings show re
ductior of only sSS,6aG.273 on DC
tobcr 81, 1911. compared with hold
ines of Sl.25S,2lS ,351 on June 30,
1879.
Secretary McAdoo referred in some
detail 10 his action against banks
boarding MI money, piling up re
serves and charging high interest
rates without good cause. 1t was a
disasreeabIc duty, he said. but one
which resulted in determination on
his own part to withdraw govern
ment deposits from banks not using
such funds for the benefit of their
communities.
This action" he said. had a sal
utory influence. because il was fol-
lowed by general lousening up of
credits: and while it is not for mo-
mcnr conteEdcd that the improve
meat il attributable wholly to the
action OF the department il is, never
theless. believed to have had a bene-
fetal effect upon the situation.
Mr. McAdoos report IL devoted
largely 20 review of the activities
of his department for the fiscal year
ending on June 80, before the war
began. but he included detailed
statements OF The treaSury's Dartici-
patton in various post war problems.
The secretary makes several rec
concentrations. He suggests 10 con-
gress that the war revenue tan law
should not expire December II, 1915,
hui that its operation should be ey-
tended until the end of the Enropean
war. by proclamation of the presi-
dcnt.
Discussing the income tax lSw the
secretary advocates "a change in the
law so that persons having Il gross
income Of 50 900 be required to make
u return instead of those persons
with a net income CT that amount
or over.
Such an amendment he says,
would simplify the adninis'f aiion
of the law, assure more complete re-
turns and materially increase the IN
come tax revenue, ana save an I'M
mcnse amount OF expense to which
the government is now subjected Ill
maintaining sufficient corps OF in
spectors and investigators to hunt
out the people who have failed to
max, returns Re recommends
also the repeal of the provision ny
which taxes do not accrue until !"
dayc after the close of the fiscal year
and would max. them accrue July |
each year.
Althousl the law did not produce
the revenue expected. tho secretary
SAYS il has proved satisfactory an"
EXPLAINS the administration OF a la"
Of that character has many obSta-
clio. to overcome at the outset ana
,I,,t folk are unacc ustomcd and must
ne educated 20 it.
Taking the tables OF returns Mr..
MCAdCo infers that there must De
mauy who failed to pay the tax.
1T is clear says he. that there
- lie ,I whN lllI1u