Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-12-24
Treasury Head Tells How War
Cuts Revenue-Would Ex-
tend War Tax Time
(By Latest Mail.)

McAdoo in his annual report to Con-
gress. outlined at length the steps
taken by the treasury department to
restore confidence and support Amer
!can business, shaken and weakened
by the European war.
"A catastrophe Of calamitous proper
TONS" said the report, was narrowly
averted. II is a tribute to the eco
nomic 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 admirably
withstood. A panic Of cataclySmic
proportions might easily have resulted
and il 1t had the injury to the coun-
try would have been incaleulable and
many years would have been required
TO overcome its effects"
BY formation of the $100,00Q.OoO
gold pool, the S135, zoo. 900 cotton loan
fund, issues Of emergency currency
and the deposit Of crop moving money
IN national banks. the situation was
relieved and confidence was revived
the report says.
Prompt Action 70 Effective. s....-..
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 has been restored and spe
Gle payments have been maintained in
the face Of the world. At no time
since the war broke out has there
been, to the knowledge of this depart
ment, with the exception of a few. $50
lated cases, failure on the part oil
any solvent national bank to honor its
checks In currency or money or to
meet its obligations. The general re
viyal Of business throughout the coun
try Is the best evidence that conf
dence has been restored. There is
every reason why the country should
look forward to the future with conf
dence so far as its trade, commerce
and industry are. concerned"
In spite of drains from Europe,
where the nation owed about $450, 600,.
900 at the outbreak OF the war, Mr.,
McAdoo says the treasury's gold hold.
ings show q reduction of only $780,,
656,279 on Oct. 81, 1914. compared
with holdings of s1,25s,21S,357 in June
80, 1913. p. +. ~ :
Ban on Bank Hoardlns.
The secretary refers in some detail
to the action against banks which, he
publicly announced, were boarding up
money, piling up reserves and charg.
ing high interest rates without good
cause. TWAS. -dtsagreeable duty, he
said, but on which resulted in a de.
termination on his part to withdraw
government deposits from banks not
using such funds for the benefit of
their communities,
This action" he said, had salu-
tary influence, because &c was followed
by q general loosening up of credits,
and while Il is not for moment con.
tended that the Improvement is at
tributable wholly to the action OF the
department, it is, nevertheless, be-
lieYed to have had beneficial effect
upon the situation"
Mr.. McAdoo's report is devoted
largely to review Of the activities Oh
his department for the fiscal year end
ed June 30, before the war began, but
he Included detailed statements OF the
treasury's participation In various
postwar problems.
Would Extend War Tax Operation.
The secretary makes several recon-
mendations. He suggests to Congress
that the war revenue tax law should
not expire Dec. 81, 1916, but that its
operation should be extended until
the end of the European war, by pro-
clamation of the President.
Discussing the income tax law the
secretary advocates change in the
law so that persons having gross In
come: of $4,000 be required to make a
return instead of those persons with
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 in which the gov
ernment is now subjected in main
tanning sufficient corps of inspectors
and investigators to hunt out the peo-
~ nav IoAIC0 " InohC
He recommends also the repeal of the
provision by which taxes do not ae-
crue 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. 1t has proved satisfactory. He
EXPLAINS that the adminiafrafinn Cf o
law OF that character has many OBJ
staeles to overcome at the outset, and
that folk are unaccustomed and must
be educated to tt Taking the tables
OF returns Mr.. McAdoo infers that
there must be many who failed to pay
the tax. -
Says Thousands Are Dodgers.
1t is clear" says he, that there
were thousands OF persons who failed
altogether to make a return as re-
quired by law. The remedy for this.
Of course is tn have the e0llacfnrs Of