Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-12-08

vAsHINGTON, Dec. S.-"The finan-
c,o, situation Of this country has never
so, so strong and so favorable as
rov." says Secretary OF the Treasury
william G. McAdoo. in his annual re-
Dor, TO the Speaker of the House OF
representatives, which was submitted
,o Congress today. "our financial re-
sources are the greatest in our history
and our banking system, through the
CREATION and operation Of the Federal
reserve system, is now the strongest in
the world"
In connection with his report Secretary
ucAdoo also submitted to Congress an
onnondix comprising replies he received
,rom the Dun and Bradstreet financial
agencies and Roger w. Babson, noted
ststistician, TO requests for brief reviews
NJ the financial and industrial situation
NJ the country. The appendix substan-
tiates in every way the report of the
Secretary, and speaks with enthusiasm OF
botb the present and the future.
"Nothing in history parallels the recent
nhenomenal expansion in national activ-
itles. and II is significant of the existing
state of the public mind that the advance
is regarded as more than ephemeral,' v
saws Dun's in part. "All the traditional
indices of prosperity are present. During
october for the first time in the annal
of the country, output OF pig iron reached
100000 tons; export trade due largely,
but not wholly. 10 the magnitude and
urgency of the war demands continues
Of unmatched proportions; bank clearinss
Ip.T., .
tanned, and railroad earnings show a
remarkable enhancement of the earning
power of the common carriers, with some
leading systems demanding maximum
revenues.
"That the effects OF the economic dis
turbance resulting from the war are
steadily being removed is indicated by
the fact that there were almost 81 per
cent. fewer insolvencies in the third quar-
ter than in the first quarter. with a re-
duction OF virtually 80 per cent. in the
amount of money involved. Throughout
all branches of enterprise evidences of
prosperity are steadily multiplying, prog
ress no longer being confined to a few
lines directly stimulated by the war"
The report of Bradstrcct's and that OF
Mr.. Babson are equally glowing as re-
CARDS both the domestic and foreign as
poets of the situation as ii concerns tho
United States.
Secretary NIcAdoo asserts that the finan-
cial condition of the Treasury is so
strong that, even though no additional
Tevenue-raising measures be put into ef-
feet, there will be a balance i'm the geu-
eral fund on June 80, 1916, of So, ,64i, sos.
Should the war tax, which expires De-
cember 81, 1915, be re-enaCted and should
the one-cent-a-pound duty on sugar,
which, under present law, will EoI lie
collected after May !, 1916, be continued
the net balance i'm the general fund on
June 80, 1916. will stand at sSS.6i4,6 600.
Should the S25,0OO,OOO expenditure to be
made on the Panama Canal be financed
by the sale of bonds as provided by law,
the net balance of June 80, 1915, would
be N6,6ii6Oj, according to the Secretary.
recapitulation of the finances shows
total ordinary receipts OF the treasury
for the fiscal year, ended June 30, 1915,
OF S6SI9lOS21, and total ordinary dis
bursements of S73l,399,7j9. giving a de-
fclency for the year of s33,4sS,93l. This
Is merely a deficiency for the year, and
does not represent the Treasury as be-
hind that much, for II has not yet used
up what II commenced the year with.
The Secretary estimates that total ap-
propriations for the Government for the
nseal year, ended June 30, 1917, should
be sos 65,929, an increase over the 1916
appropriations of sl67, ,s31, 4Ol,
The outlook for the fiscal year 1917
which will begin next July, is not so
bright, Mr., McAdoo tells the Congress.
In his report, Secretary McAdoo de-
elaTes that bond issue is inadvisable,
and says that additional revenue may be
raised by maintaining the present war
TAX and the sugar duty; by increasing the
income tax and by greater care i'm col
leetions Of all taxes. The Secretary says
that 1t is as poor policy for govern
ment to subsist ON the proceeds OF bond
sales as for an individual to live on bor-
foWed money. Let the Government pro-
cure money through taxation that 1t need
not repay, says Mr.. McAdoo.
In view of this attitude of the Secre-
tary and the general feeling among Ad-
ministration leaders that retention of The
war tax and the sugar duty is inevitable,
u Is believed here that the Government
VIII not be deprived of these sources of
revenue, and this being the case, Mr..
MeAdoo says, an expenditure of S93S0O,-
wv on the preparedness program will roll
up deficiency of S5O.S06, 39i by June 80,
lsiI' the end OF the 1917 fiscal year. To
AT