Pine Bluff daily graphic., 1915-12-09
Secretary McAdoo Reports Financial Resources the
 Greatest in History.
pROPOSES INCREASE
 IN THE INCOME TAX
Would Tax People With Incomes of 5000 and $3,0OO, and Increase Rates on Big IncOmes-Thinks
 Federal Reserve Saved Cotton.

Washington, December S.-"The financial situation of this country has never ben so strong and so favorable as now," says Seer: tary of the Treasury William G. McAdoo in 3 his annual report to the speaker of the house of representatives, which was submitted 10 congress today. AOur financial resources are the greatest in cur history and our bank
 ng system, through the creation and operation of the federal reserve sys- tem is now the strongest in the wofld."
 The secretary asserts that the financial condition of the tr5asury is 50 strong that. even though no addi- sonal revenue raising measures be put into effect there will be a bal snce in the general fund On June 30, 1916 of $32 .644, ,605. Should the war tix which expires December 31: 1915, be re-enacted and should the one cent pound duty on sugar, which. under present law will no. be | collected after May 1, 1916. be con- hnued. the net balance in the general fund on June 90, 1916 will stand at tSS,644,6 ,605. Should the s25,000.000 sxpenditure to be made on ';he Pana- ma canal hs financed by the sale of bonds as provided by law, the net xbahnce of June 30,. 1916 would be N,644,605. according t the secretary.
 "A recapitulation of the finances shows total ordinary receipts of the treasury for the fiscal year ended June 30, 1915 of ,910,S27 and total oldinary disbursements of $731, ,299.- 7S9, giving deficiency for the year of $33,4SS,931. This is merely de- flcS:ncy for the year and does not represent the trea sury as behind that much. for it has not yet used up what l. commenced the year with. Proposes New Taxes.
 MT. McAdoo's suggestion for rais- Ing this additional revenue are to:
 Increase the corporation and personal income taxes by providing higher rates and, in the case of the psrsonal income tax, reducing the SOOO exemption for single persons and $40O0 exemption for married iolk to $2,O0O and $3,OO0 respectively.
 Increase the tax on gasoline, crude snd refined oils. horsepower of auto- mobiles and other internal combus- !lon engines and various other things where collection could be made a. the course" MT. McAdoo aso says that. following the Euro pean war. a. flood of imports may be expected which will increase customs duties.
 secretary McAdoo reports that the soun:ry is so prosperous that addi- Honal tax burdens can easily be borne. He says thar. his action in de- psitlng $15,000,000 in southern fed e.al reserve banks saved the cotton situaElon when that commodity was paced on the British contraband list and that confidence has returned sverywhere throughout the country, uaslness in all lin:s booming phe- nomenally.
 ,sl During She fiscal year 1915. $29,- Mlo42 was spent on the Panama .saai, .s, the secretary reports. Of this yISa'o14.S62 was for construction on ,as.,s ae canal proper and $7,572.679 for 'Ortifications and miscellaneous u uork. Total expenditures on the .ssa s@aama canal to June 30, 1915
 uisuhted to s219,471,636.