The Washington times., 1914-12-09

produced less than its trainers esti-
mated for the first year of its opera
ton. says the Secretary.
Notwithstanding. the results from
the income tax law for the first ten
months of its existence have been sat
isfactory. The admin stration of a
new law of this character encounters
great obstacles at the outset In the
( first place. the people of the country,
unaccustomed to an income tax, must
be educated to the law. This takes
time"
That many people dodced the tax
/ is the opinion of McAdoo. Many failed
. to make any returns, and the Secre-
tary feels it is necessary to make in
vestigations to determine persons
guilty of tax lodging.
McAdOo suggests revision of the law
by which every person with gross
income of g 900 or mere annually must
make a return, instead of. as al pres
ent. making a return on net income
of $1,000 or more.
Praise For Currency Act.
Of the Federal reserve system, Secre-
tary McAdoo predicts great things.
1T is sufficient to say that it gives
promise of being the most important
piece OF legislation, in the substantial
benefits that it will confer upon the
y.
enacted since the civil war. i look for
ward with the greatest confidence to its
effects upon American enterprise and
American business ! believ. that II
will stabilize credits, prevent those eX-
treme fluctuations in interest rates. and
in supply Of credits and money, from
which the country has so frequently
suffered, and that IT will assure that
legitimate expansion of responsive credit
facilities So long imperatively demanded
t. sV,#a &c mo nr1lsz n.a
enterprise. and industry both at home
and abroad.
THE Federal reserve act has also pro-
vided a means by which State banks
may more readily become national banks
and thus secure the benefits OF the Fed
eral Reserve system or by which they
may retain their State charters and
still become members OF the Federal
Reserve System and secure its benefits.
1T will be of great advantage to the
country to bring more thoroughly under
the supervision of the National Govern
ment than heretofore the entire bank
ing system of the country. II is a
serious defect in our financial structure
TO have so many State banks operating
under fOrty-eight different kinds OF
State laws If they shall. through wise
legislation and management. be brought
Ultimately into the Federal Reserve Sys-
TEN. so as 10 make the banking business
Of the country homogeneous and we'll
ordered whole. administered, regulated,
and supervised under the authority of
the National Government. a great and
lasting benefit will be secured TO the
American people. This may be. and it
is to be hoped will be, the natural evo-
luton OF the new Federal Reserve Sys-
tenn
Gold Reserve Grows.
With respect TO our stock of gold the
report says:
The political situation in Europe for
the past two years has been strained 20 |
such degree that foreign banks gem
orally have been making strenuous ef |
forts to increase their gold reserves. |
This undoubtedly accounts for the sale |
in large amounts OF American securi- |
ties thar had been held abroad. When |
war became imminent these sales be |
came more urgent. and were finally /
cut urT only BY the closing of the 4
stock exchanges.
However. Notwithstanding the heavy 1
gold exports that have occurred during 1
The past year. and particularly since |
last May, the gold holdings OF the |
Treausry on October 81. 1914, were 81
lso. So O7S. VII Oh. compared with 81 .2SS,-
2lS.357 or June ~. 1919. shows a reduC-
zion Of only SIS SjS.279 during this period |
Of most unusual demands. OF course.
the production Of our own gold mines