The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-09
NATION NEVER so RICH.
M'ADOO TELLS CONGRESS
Annual Report Is Paan Of Prosperity, Although Point
ing Out Need for Increased Revenues to Meet
Defence and Other Projects.

WASHINGTON, Dec. s.-A pean Of
prosperity is the leading feature Of the
annual report of the Secretary OF the
Treasury. made public to-day. The first
several pages are devoted entirely to COM
ment on improved business conditions
and a historical account Of tho steps by
which the Wilson Administration through
the Treasury Department and Federal
Reserve Board has aided in bringing
about these conditions.
Al the outset tho Secretary contrasts
conditions with those OF a little over q
year ago.. when he wrote his last report
to Congress. He docs not minimize the
unwbolesOme effects OF the war, but re-
fcrs to our Industrial situation as having
been FOR a time seriously hurt"
Il believe that II was not mex act 10
say" he adds. that but for the active
agency Of the Government In protecting
and conserving the business interests Of
the country during that critical period
grAve disaster would have resulted"
Mr.. McAdoo Incorporates special 70.
ports made To him by II. q. Dun & Co.,
Henry F. Dunn Of the Bradstreet Com
pany and President Babson OF the Bah
son Statistical Organization. These three
reports are unanimous In the opinion that
a nationwide business boom bids fair
TO continue until larger stretches Of pros-
pertty have been attained.
The Secretary recommends important
changes In the income tax law, one OF
them being that the present burdensome
method OF collecting tho tax at the
source be done away with.
Secretary McAdoo's Report.
The secretary's report says in part:
ut must be a source OF profound sat-
isfaction to the people of the United
States. regardless OF political Affiliations.
to contrast the conditions to-day with
those prevailing in this country in De-
cember. 1914. Then the country was
lust recovering from the terrific shock
OF tho European disaster. We had zone
through months OF serious. n not critical.
experiences. A countrywide panic OF
appalling proportions wac threatened but
averted. We had emerged with our
credit not only unimpaired but strength
ened.
THE railroad situation shows extYaor-
binary Improvement and strength. In
creases in gross and he, earnings have
been marked. In some cases being above
the highest point ever before recorded.
As recently as June !. 1915. there were
100000 idle cars. with "A corresponding
surplus of idle locomotives. Now there
are no lido cars or die locomotives In
the country, and tho railroads are buying
now equipment. A summary OF a recent
statement shows that the railroads have
placed orders In the months Of Septem-
Der and October for 6s3.S00 tons OF rs,ls.
2S0 locomotives, $4,000 freight ca rs, 90
passenger cars. besides lumber and fab.
ricated steel and iron. valued at mors
than SIS. 900. 900. In the basic industry
OF iron n steel the conditions arc phe-
nomenal. This great industry 10 said 10
be on a veritable boom. Every blast
or Is preparing to 20 into operation, and
The demand for steel n iron products
has so broAdened that the mills through.
out the country are working to full ca.
pacity."
Ala for Cotton Grower.
Secretary McAhoo praises the Depart
ment OF no Treasury for what II ala
for tho aid OF tho Southern cotton
farmers last summer when the an
nouncement In August that the British
Government n its allies had placed
cotton on the contraband list gave
ground for tho belief that the cotton
situation in the South would again be-
cofne demoralized as in 1914.
Gold holdings IN the United States are
now the largest on record. according 10
the report. The unprecedented situation
In Europe rapidly changed the United
States from q debtor TO a creditor ma
ton, Although the panicky condition ~