Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-12-09
PANIC NARROWLY
:. AVERTED-M' 'ADOO
Secretary Of the Treasury Presents
His Annual Report to
Congress

Washington, d. c., Dec. 9.-=Seefe-
tary McAdoo in his annual repor' 10
Congress to-day outlined at length the
steps taken by the Treasury Depart
ment to restore confidence and support
American business. shaken and weak
ened by the 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 wlthstood."
BY formation of the 500, 10000
gold pool, the $135, 100000 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.
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.
The general revival of business
throughout the country is the best evil
dence that confidence has been re-
stored. 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-
cerned."
In spite of drains from Europe,
where the nation owed about $450,-
600. 600 at the outbreak of the war,
Secretary McAdoo says that the Treas
ury's gold holdings show a reduction
of only SS3.656,279 on October 81,
1914, compared with holdings of
$1,25S,21S,357 on June 80. 1913.
The Secretary makes several recon-
mendations. He suggests to Congress
that the war revenue tax law should
not expire December 81, 1915, but that
it's operation should be extended until
the end of the European war by proc
lamaton of the President.
Discussing the income tax law, the
Secretary advocates u change in the
law so that persons having a gross in
come of $4,000 will be required to
make a return instead of those per-
sons with a net income of that amount
or over.
Although the law did not produce
the revenue expected, the Secretary
says 1t has proved satisfactory, and
explains the administration of law of
that character has many obstacles to
overcome at the outset and that folk
are unaccustomed and must be edu-
Gated to it.
Mr. McAdoo again recommends to
Congress the consolidation of the rove
nue. cutter and life saving services. to
bear the name coast guard service"
He urged the building of two more
revenue cutters and the appropriation
for a peprosarium for the use of the
Public Health Service.
Secretary McAdoo estimates the re-
ceipts of the government for the fiscal
year 1915. ending June 80, at
S72S,000,000, including 100000, 900
from customs and S54,000.000 from
the emergency war tax. Exclusive of
the Panama canal. he places disburse-
ments at $4,000, 900 for the current
year. Counting upon s2S,000,0 900 for
the canal out of the Treasury's general
fund, he places the excess of dis
bursements at $40, 100000.
For the fiscal year which ends June
80. 1916, Mr.. McAdoo says he expects
receipts amounting to S735. 900. 900.
with customs bringing $240, 900 900
and the emergency war taxes S54.-
100000. The Secretary places ordi-
nary expenditures for that head at
S7t3,765,105. with $19,0O0OOO addi-
tional for the Panama canal, leaving
q slight surplus