The Alaska citizen., 1916-12-18

1 McAdoo's annual report of the gov enmonrs finances. presented to con | gress today, estimates that the fiscal year ending June 30th, 1917, will show balance of $115.G0O.o GOO in the general fund but that the figures a year later June 30th, 1918. will show deficit in the general fund of SlS5.o0o.OOO
 Preliminary etimates place the cost of conducting the government for the coming fiscal year of 1918. exclusive of the postal service. which 1 is expected to be self sustaining, anG other deductions, at $1,27S,021,O00 | The ordinary receipts for the fiscal l year 1918 he estimates at 995,550 000. which iz $2S2,47l000 less than the estimated expense.
 Estimates of large expenditures for national defense carry the estimated outlay beyond the estimated income
 For the fiscal year 1916 now draw ing to a close, the secretary reports 1 great prosperity and expresses great l Q confidence for the future. Dur 1 ing the past year," the secretary says, the prosperity which set in so strong Iy during the fiscal year 1916 has grown in strength and volume and is now widely diffused throughout i the United States. Fundamental eco homie conditions have never been more sound, In all lines of industry efficiency of organization and pro duction have reached the highest point in the country's history Gen eral confidence in the future, health ful enterprise and development have been marked characteristics of the past year.
 The financial strength of the United States-the greatest in our history gives us a commanding pc sition in world finance. We have l been transformed from a debtor into a creditor nation. On November l, 1916, the stock of gold coin and bul- i lion held in the United States was estimated at $2,70O, ,136,976, an in crease of $714591S04 in the past sixteen months. This is the largest stock of gold ever held in the United ! States or in any other country in the world Through the operations of the Federal Reserve System and with our abundant supply of gold as a basis, the credit resources of the United States have become more than sufficient for home demand, and we have been able to finance our great domestic and foreign trade without strain and to extend vast amounts of credit to other nations throughout the world.
 The experience of the past two years has brought into strong re lief the value of the Federal Re erye System. It is not too much to say that our great prosperity could not exist without it. The usefulness of the system has been broadened re gently by the amendatory act of Sep tember ', 1916, which renders it more attractive to member bank and increases the scope and service of the Federal reserve banks. Due to the transference of vault and other reserves to Federal re. erVe banks, authorized by the original act and amendatory act, the resources of said banks are now more than $650,- 000,000, while the total reserves held are over $4O000O,O00, and, in addi ton, more than $230,00O0O0 is held by Federal reserve agents as special security against Federal reserve notes About one-fourth of the cOun- try's stock of gold is thus mobilized
 in the hands of the Federal reserve banks and agents.
 The increasing strength and eff ciency of the Federal reserve banks have enabled them to enlarge their direct service to the business com munity through the introduction of d definite and comprehensive system for the par clearance of checks throughout the country.
 Rates of discount at federal re serve banks have continued low throughout the year, and most of their open-market paper, consisting largely of acceptances growing out of foreign trade, has been taken be low 12 per cent basis. Rates of interest throughout the country have been reduced and stabilized with great advantage to the business of the country.
 Tt would have been impossible to finance our vast domestic and for