New Britain herald., 1915-12-08
RADICAL CHANGES
 IN INCOME TAX
(Continued From First Page.)


 sustained heavy losses through de- clines in the price of cotton. Every power of the Government was ex- erted to mitigate the situation and I believe it is not inexact to say that but for the active agency of the government in protecting and con- serving the business interests of the country during that critical period grave disaster would have resulted.
 "It is a pleasure to acknowledge that the efforts of the Government were seconded and supported by the earnest and patriotic cooperation of the business interests of the country. During the year there has been steady, healthy, forward movement in every line of activity, until now prosperity has been firmly estaollshed throughout the country
 MT. McAdoo included letters from mercantile agencies to support HIS statement, and quoted figures on ra1i- road and other business operations to show increased activities.
 Financial Situation Strong.
 "The financial situation of this country" he continued, has never been so strong and favorable as now.
  est in our history, and our banking system, through the creation of the Federal Reserve system, is now the strongest in the world. Tn every re- spect the economic and financial con- dition of the country is extraordinarily sound. It is greater than that of any ether nation and if we use our re- sources and our opportunities intel llgently, we shall establish the pros perity of this nation upon an impre- gnable foundaton for many years to ccme'' ...!,-y: .l,
 In that connection the secretarys report showed the stock of gold in the United States on Nov. 1, 1915. was $2,19S,113,762 compared with 5,S76,5S0 on January 2 and that it is by far the largest sum in gold ever held by one country. Indications were, he added, that the present stock would be greatly augmented.
 Treasury Department Operations.
 The report reviews at length, opera tions of the treasury department for the year, MT. McAdoo's deposits of gold in the Atlanta, Dallas and Rich mond federal reserve banks, and his decision to make reserve banks gov ernment Repositories and fiscal agents.
 Legislation recommended included $5O,O0O for second Pan-American financial conference in Washington in 1917 and $25,0OO for the use of the United States section of the interna- tional high commission on uniformity of laws for the two Americas.
 Opposes Public Buildings.
 The method of legislating for pub lie buildings in an omnibus bill re- ceived the secretary,s disapproval and he asked that it be discontinued. Needless waste of public money, he said, will be avoided if congress will hereafter not authorize the acquisition of pubic building sites until authoriza- ton is made for the buildings to go on the sites. He asked that the sec re tary of the treasury be authorized to fit the building to the city and not to make it just as imposing as the sum concentrated under the present system will permit.
 MT. McAdoo asked for two cruising cutters for the coast guard service on the Pacific coast, to cost $700, 900, a harbor cutter for New York to cost S125,OOO and one for San Francisco to cost $5O,OO0. He says that in plans for national defense the Coast Guard will have important assignment and that authorizations for the service will be valuable from military stand point.
 Reviewing the oleomargarine and whiskey frauds of the year the re- port again recommends changes in the oleo law to reduce the invitation to commit similar frauds.