El Paso herald. (El Paso, Tex.) 1901-1931, 1914-12-09
CONFIDENCE IN
j. 8. RESTORED
Secretary of Treasury Says
Great Calamity Was
Narrowly Averted.


-
Washington, D. c., Dec. "a catas-
trophe of calamitOus proportions was
averted by the formation of the 1900
100000 gold pool; the $135, 600, 600 cot
ton loan fund; issues of emergency
currency and the deposit Of crop NOV
ing money in national banks, saws sec
rotary OF the treasury ". G. McAdoo in
his annual report to congress today.
1T is a tribute to the economic
strength and soundness of the country
and to the patriotism of its people in
every class and walk Of life" saws the
report, that the shock has beer so ad-
mirably withstood, A panic of
cataclysmtc proportions might easily
have resulted and if it had, the injury
to the country would have been meal
culable and many years would have
been required to overcome its effects.
Through the prompt and effective
action of the treasury department. and
with the cordial and intelligent cooper
alton Of the banking and business in
terests Of the country, the danger has
, been averted' says the report Con
fidence has been restored and specie
payments have been maintained in the
face Of the word. At no 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 ma
tional bank to honor its checks in cur
AGnGy u AASAoy VI uuGbL It's OuAA66
tons.
THE general revival Of business
throughout the country is the best
evidence that confidence has been re-
stored. There is every reason why the
country should look forward to the fu-
ture with confidence so far as its trade,
commerce and industry are concerned"
adds secretary McAdoo.
In spite of drains from Europe, where
H. -nNfnn nu~n6 nhnvTH EFEn mn mn Of
the outbreak of the war, secretary Nc
AdOo says that the treasury's gold
holdings show a reduction of only
SIS, 656, 279 on October 81, 1914. COM
pared 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 money, piling up reserves
and charging high interest rates with
out good cause. 1t was a d~isagreeable
duty, he said, but one which resulted
in a determination on his part to
withdraw government deposits from
banks not using such funds for the
benefit Of their communities.
Forced L~OOseninE Of Credits.
""This action" he said, had a salu-
tory influence, because it was followed
by a general loosening up on credits;
and while it Is not for a moment con-
ended that the Improvement is attrib-
uNabAE NhDAAg ~ NAC az VI nv ~
partment 1t is. nevertheless, believed
to have had a beneficial effect upon
the situation"
Mr.. McAdoo's report is devoted large
" to a review Of the activities Of his
department for the fiscal year ending
on June 80, before the var began, but
he included detailed statements of the
treasury's participation in various post
war problems.
Would Continue Wa Tax.
TIKI raawafar~ mo los chz-nTa1 rap0m-
m-endations. He suggests to congress
that the war revenue tax law should
not expire December 81, 1915, but that
its operation should be extended until
the end Of the European war, by procla-
nation of the president.
Discussing the income tax law the
secretary advocated a change in the
law so that persons having a 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 returns
and materially increase the income tax
revenue, and save an immense amount
of expense to which the government is
now subjected in maintaining a suffi-
cient corps Of inspectors and Investlga-
tors to hum out the people who have
failed to make returns" He recon-
mends also the repeal Of the provision
b. which axes do not accrue until 10
days after the close Of the fiscal year
and would make them accrue July /
each year.
Income Tax Law Satisfactory.
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 70
overcome at the outset n that folk
are unaccustomed and must be educated
to il.
Taking the tables Of returns Mr.. Nc
ADO infers that there must be many
who failed to pay the tax.
Many Failed to Make Returns.
at is clear" says he, that there were
thousands Of persons who failed alto
gether to make a return as required by
law. The remedy for this, of course,
is to lave the collectors Of internal
revenue in each district maxi an as
seSsment upon those, who. in the op1n-
ion of the collector are liable to tha
tax, and in addition, to make such in
vestigations as may be necessary 10
determine who in each district have
failed to make proper returns. The eX-
p~erience Of the department shows that
many erroneous and faulty returns
have been made The work of discov-
ering c cases, he adds, is being
pushed forward with all possible
rapldity.
THE collection Of revenue for the
fiscal year ended June 80, 1914" says
Mr.. McAdoo, show the success Of the
tariff act of October 3, 1913, as a
revenue measure" He goes on to show
that this act was estimated as the pro-
Queer of $270, 900, 600 in its first year
and that there was actually collected
1922, 320,014. That, however, included
nine months under the new law and
three months under the Payne-Aldrich
law. He shows that the total raised
under the new law with it's corporation
and income tax features was 1853, 701,-
2S9 or $9,S03, 593 in excess of the
previous years receipts under the pre-
ceding revenue measure.
War Reduces Import Revenues.
THE European war" said the secre-
tary. seriously affected the revenues
of the government from imports. The
revenue from customs for October, 1914.
was S16.271,S29 and for October. 1913,
it was $50, 1873, 049, a decrease of $13.S66,-
220. The reduction is solely due to the
falling off in importations. The esti-
mate made by the department indicated
a yearly dprrnn co Of haFuaan eEO nm mn