The Daytona daily news. [volume] (Daytona, Fla.) 1903-1926, 1915-12-08


Washington, Dec. S.-"The finan-
cial situation of this country has
never been so strong and so favorable
as now" says Secretary of the Treas
ury William G. McAdoo in his annual
report to the speaker of the house of
representatives. which was submitted
to congress today. "Our financial re-
sources are the greatest in our his
tory and our banking system. through
the creation and operation of the fed
eral reserve system, is now the
strongest in the world
The secretary asserts that the finan-
cial condition of the treasury is so
strong that, even though no addition
al revenue raising measures be put
into effect, there will be a balance
in the general fund on June 80, 1916,
of 1884, sos. Should the war tax,
which expires December 81, 1915, be
re-enacted and should the one cent
UOUuu uuIy OA ou6oA, WAANA NAANSA
present law will not be collected af-
ter May 1, 1916, be continued, the net
balance in the general fund on June
80, 1916, will stand at $88,644,605.
Should the $25.000,000 expenditure to
be made on the Panama canal be fl
nanced by the sale of bonds as pro-
vided by law. the net balance of June
80. 1916, would be $76.644.6O5. accord
ing to the secretary.
A recapitulation of the finances
shows total ordinary receipts Of the
treasury for the fiscal year ended
June 80, 1915, of $697, 910,S27. and To-
tai ordinary disbursements of $751;
399, 759. giving a deficiency for the
year Of $33,4S8.931. This is merely a
deficiency for the year and does not
represent the treasury as behind that
much, for it has not yet used up what
1t commenced the year with.
The secretary estimates that total
appropriations for the government for
the fiscal year ended June 80, 1917,
should be $90S, 765. 1923. an increase
over the 1916 appropriations of $751;
831, 4O1.
The outlook for the fiscal year 1917.
which will begin next July, is not so
bright. Mr.. McAdoo tells the con-
gress.
In his report Secretary McAdoo
declares that bond issue is mad
visable and says that additional reve-
nue. may be raised by maintaining the
present war tax and the sugar duty
by increasing the income tax and by
greater care in collections of all taxes
The secretary says that it is as poor
policy for a government to subsist
on the proceeds of bond sales as for
an individual to live on borrowed
money. Let the government procure
money through taxation that it need
not repay, says Mr.. McAdoo.
In view of this attitude of the sec
rotary and the general feeling among
administration leaders that retention
of the war tax and the sugar duty is
inevitable, it is believed here that the
government will not be deprived of
these sources of revenue, and this
being the case, Mr.. McAdoo says, an
expenditure of $93,S0O,0O0 on the pre-
paredness program will roll up a de-
ficiency of $50.S06,394 by June 30.
1917 tho Of he
To meet this deficiency, Mr.. McAdoo
would increase the internal revenue.
He figures that the total increase in
revenues needed is SIP, S06,394. pro-
yided $25,000.00O worth of Panama
canal bonds are not sold. If the issue
should be made, that much would be
subtracted from the amount of addi-
tional revenue required.
Mr. McAdoo's suggestions for rails
ing this additional revenue are to:
Increase the corporation and per-
sonal income taxes by providing high
err rates and, in the case of the per-
sonal income tax, reducing the $4,000
exemption for single persons and
$4,000 exemption for married folk to
$4,000 and $4,000 respectively.
Increase the taxes on gasoline.
crude and refined oils, horsepower OF
automobiles and other. internal com.
bustion engines and various other
things where collection could be made
at the source" Mr.. McAdoo also
says that, following the European
war, flood of imports may be ex-
pected which will increase customs
duties.