The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1916-12-08
Washington, Dec

Washington, December 6.-Secretary
McAdoo's annual report of the govern
ment's finances, presented to congress
today. estimates that the hsca. year
balance of sl15,Ooo,oOO In the general
fund but that the figures a year later
June 3Oth, 1918 will show defiict IN
the general fund of $1S5OO0,OOo. IRE
conducting the government for the ne
coming fiscal year 1918, exclusive OF
the postal service which IS expected
to be self sustaining and other deduc,
receipts for the fiscal year 1918 he es-
Inmates at 1896, $50 900. which is $2s2,-
All 900 less than the estimated expense.
Estimates of large expenditures END rt;n,o t toI
outlay beyond the estimated income
For the fiscal year 1916 now drawing
to a close, the secretary reports great
prosperity and expresses greatest con
past year." the secretary says, the
prosperity which set in so strongly
during the fiscal year 1915 has grown
i'm strength and volume and is now
widely diffused throughout the United
States. Fundamental economic con-
ditions have never been more SOUND:
In all lines of industry EFFICIENCY OF
organization and production have
trv's history. General confidence in
the future, healthful enterprise ana
development have been marked CHAR
acteristics of the year..
..The financial strength of the United
States-the greatest in our history.
gives us a commanding position IN
world finance. We have been trans
formed from debtor into creditor
nation On November l.; 1916: the
stock of gold coin and bullion in the
United States was estimated at $780,
1866, an increase of S14:5sI,So4 IN
the past sixteen months. This is the
largest stock of gold ever held in the
United States or in any other country
of the world. Through the operations
of the Federal Reserve. system and with
out abundant supply of gold as basis;
the credit resources of the United
States have become more than suffi-
cient for home demand, and we have
and foreign trade without strain and
to extend vast amount of credit TO
other nations throughout the world.
1.-The experience of the past two years
ue of the Federal Reserve system. 1t
is not too much to say that our great
prosperity could not exist without 1t.
The usefulness of the system has been
act of September z, 1916. which rem
ders it more attractive to member
banks and increases the scope and
services of the federal reserve banks;
other reserves to federal reserve banks.
authorized by the original act and
amendatory act, the resources of said
banks are now more than $3.50, 100000,
while the total reserves held are over
400. 600, 900. and, in addition more than
$3.50. 600, 900 is held by federal reserve
agents as special security against fed
eral reserve notes About one fourth
of the country'S stock of gold is thus
modified in the hands of the federal
reserve banks and agents.
1.-The increasing strength and ell
cheney of the federal reserve banks
have enabled them to enlarge their
direct service to the business cOmmu-
nifty through the introduction of "a
definite and comprehensive system for
the par clearance of checks throughout
sRates Of discount at federal reserve
the year. and most of their open-mar-
ket. paper,i consisting largely of ac-
ceptances, growing out of foreign trade,
has been taken below a 2k per cent
basis. 49, Rates of interest throughout
the country have been reduced and
stabilized with great advantage to the
business of the country.
''It would have been impossible to
finance our vast domestic and foreign
trade without the facilities provided
by the Federal Reserve system. Not
traordinary needs of business. but it
has established confidence securely.
Business has been able to go forward
without apprehension and the several
crises which the country has faced in
it's international relations during the
past two years have been accompanied
by no disturbances and have caused
not even a tremor in the financial
world The crops of 1915 and 1916