South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-12-08
SeC'y M'AdOO Says Financial
Situation of Country Has
Never Been as Strong
or Favorable as Now.
OFFERS SUGGESTIONS
FOR PASSING REVENUE
Opposed to Any Bond Issue
But FaVorS Increases in
the Corporation and
Income Taxes.

WASHINGTON. Dec. S.-"The
financial situation Of this country
has never been so strong and so
favorable as now" says Sec'y of the
Treasury William c. McAdOo in his
annual report TO the speaker OF the
house of representatives which was
submitted today our financial re-
sources are the greatest in our his
tory. and our banking system,
through the creation and operation
Of the federal reserve system, is now
the strongest in the world"
The secretary asserts that the
financial condition of the treasury is
so strong that, even though no addi-
tional revenue raising measures be
put into effect there will be a ball
ance in the general fund on June 30,
1916, of So, 644.605. Should the war
tax. which expires Dec. 81. 1915. be
reenacted, and should the one cent
a pound duty on sugar, which, under
present law will not be collected
until after May 1, 1916, be con-
tinued. the net balance in the gen.
eral fund on June 30. 1916, will
stand at $SS,644,605. Should the
S25. 900, 900 expenditure TO be made
on the Panama canal be financed
~ the sale Of bonds as provided by
law. the net balance Of June 30.
1916. would be S76,644,605, 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 S697,91O,S27 and
total ordinary disbursements or
S731.4SS.931. giving a deficiency for
the year of $33,4SS,931. This is
merely a deficiency for the year and
does not represent the treasury as
behind that much, for il has not yet
used up what it commenced the year
with.
should BE Increase.
The secretary estimates that total
appropriations for the government
for the fiscal year ended June 81,
1917. should be S90S,765.929 an in
crease over the 1916 appropriations
of $167,S31.4O1.
The outlook for the fiscal year
1917 which will begin next July is
not so bright, Mr.. McAdoo tells con-
gress.
IN his report Sec'y McAdoo de-
cares that a bond issue is inadvis-
aJle and says that additional rev.
cline 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.
Mr.. McAdoO says an expenditure
Of S93.SOO.OO on the preparedness
program will roll up a deficiency of
S5O.SO6.394 by June so. 1917. the
end of the 1917 fiscal year. To meet
this deficiency, Mr.. McAdoO would
increase the internal revenue. He
figures that the total increase in rev.
enues needed is $112.SO6.394. pro-
vided S25.OO0,OOO worth Of Panama
canal bonds are not sold. If the is
sue should be made. that much
would be SuhtraCted from the
amount OF additional revenue re-
quired.
Mr. McAdOo's suggestions for rails
ing this additional revenue are to:
Increase the corporation and per-
sonaI income tax by providing
higher rates and. in the case Of the
personal income tax. reducing the
$4,000 exemption for single persons
and $4,000 exemption for married
folk TO $4,000 and $4,000 respective
ly.
Increase the taxes on gasoline.
CONTINUED on PAGE THREED