Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-12-09
EMERGENCY TAX
UNTIL WARS END,
NJ 'ADOO URGES
Secretary Would Also Have
Gross Incomes of 5000
Subject to Levy.
FIGURES SHOW
NEW TARIFFS SUCCESS
In Report Treasury Head Re-
counts Steps TO Restore Con-
fidence in Business.

WASHINGTON. Dec. 9.-secretary
MeAdoo. in his annual report to Con-
gress today outlined at length the
steps taken by the treasury depart
ment to restore confidence and sup
port American business, shaken and
weakened by tie European war.
a catastrophe of calamitous pro-
portions" said the report. was mar
rowly averted. 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 that the shock has been so ad-
mirably withstood. 4 panic of cata-
clysmic proportions might easily have
resulted, and If it had, the injury 10
the country would have been incai-
culable and many years would have
been required 10 overcome its e.
fects.
Bv formation of the 800. 100000 gold
pool, the S135, 900, 600 cotton loan fund,
issues of emergency currency and the
deposit of crop moving money in ma
tional banks. the situation was re-
lieved and confidence was revived.
the report says.
Through the prompt and effective
action of the treasury department
and with the cordial and intelligent
cooperation of the banking and busi-
ness interests of the country, the
danger has been averted," says the
report.
"Confldence has been restored and
specie payments have been main
tanned in the face of the world. Al
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 national nank 10
honor its checks in currency or money
or to meet its obligations. The gen
eraI revival of business throughout
the country is the best evidence that
confidence has been restored. There
is every reason why the country
should look forward to the future
with confidence so far as its trade,
commerce and industry are con-
eerned.s
Reduction of Sss,ess,g7s shown.
In spite OF drains from Europe
where the nation owed about siaO, ,Ooe,-
/ 600 at the outbreak Of the war, Sec
| ratarv McAdoo says that the treas
ui-y's gold holdings show reduction
of only ssS,656, ,2T9 on october 81, 1919
| compared with holdings OF sl,-oS, zls.
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 Win
out good cause 1t was disagreeaple
duty, he said, but one which resulted
in a determination on his own part
to withdraw government deposlts
from banks not using such funds Tor
the benefit of their communities.
This action he said, had salu-
tory influence. because it was followed
by a general loosening up of credits,
and while 1t was not for a moment
contended that the Improvement IS
attributable wholly TO the action OF
the department, 1t is, nevertheless, be-
lieved to have had a beneficial effect
upon the situation"
Mr.. McAdoo's report is devoted
largely to a review Of the activities
of his department for the fiscal year
ending June SO, before the war began,
but he included detailed statements
of the treasurys participation in Vari-
Gus postwar problems.
The secretary makes several recon-
Continued on Page 2, Column 81.