The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1916-12-06
PROSPERITY TEST
0FGURRENCYLA
SAYS Seem ADOO
limited States Now in Com
manding Position in
World Finance.
s2,7OO,136,976 IN GOLD
This Stupendous Amount Of
the Yellow Metal in
America.
tBy Associated prcsy

WASHINGTON, Dec. e. Secret
hry McAdoo's annual report OF the
governments finances. presented to
Congress today, estimates that the
fiscal year ending June 3Oth. 1917 will
! show a balance of $l15,O00.000 in the
general fund but that the figures n
year later-June Both, 1918 will show
p deficit In the general fund Of 1855.
100000.
Preliminary estimates place the cost
OF conducting the government for the
coming fiscal year 1918. exclusive of
, the postal service which Is expected
to be self sustaining and other deduc.
ions, at $1,27S,021. 900. The ordinary
receipts for the fiscal year 1918 he
estimates at S995.55OOOO which Is
$282,471 900 less than estimated exp.
ense.
Estimates OF large expenditures for
national defense carry the estimated
outlay beyond the estimated income
For the fiscal year 1916 now draw.
ing TO close, the Secretary reports
great prosperity and expresses great.
est confidence for the future. Dur.
ing the past year" the secretary saws.
~ PAOoPClllg NlllAll set III ~ SllOUH-
1y during the fiscal year 1915 has
grown In strength and volume and is
now widely diffused throughout the
United States Fundamental economic
conditions have never been more
sound. In all lines of industry effici.
ency Of organization and production
have reached the healthful enterprise
and DEVELOPMENT have marked charact.
eristics of the year.
The financial strength OF tho Init
I'D States-the greatest in our history
gives MS commanding position in
world finahce. We have been trans.
formed from a debtor into a creditor
nation. On November /. 1915. the
stock of gold coin and bullion in the
United States was estimated M S2.7ur.
136,976. an increase OF S7li.5a7. SGi in
the past 16 months This is tho lar
est stock OF gold ever held III ~"
United States or any other country 81
the world. Through tho operations us
the Federal Reserve system and WIKI
out abundant supply Of gold Is = uas;s
the credit resources al the United
States have become moro than gaTl
cient for home demand. and WC hayC
been able 10 finance oar great dome
tic and foreign trade without strain
and to extend vast amounts o. cr"di'
TO other nations throughout The world.
THE experience o. tn" pas two
years has brought INTO sIruu. rciirf
the value of the Federal iic~g.y,. ST..
TEN. 1t Is TO, "a" mu"n E. >iy ,;,t.
Our great prosperity '"ulD NOT "yis.
without II. The uScrTiUrss 81 tho SIS.
tenn has been brCadcncd recently by
the amendatory act nC ScT'emhA =.
1916, which renders il more attractive
70 member banks. an Increases the
scope and services 90 e., Fedora re.
serve banks. Euc T.. -. 'rsHs:Crrncc
CT vault and other -".Hrsns 10 Fed.
eral reserve banks, authorized By tho
original act and ndEerda;ory act. the
resources of said hanks are now more
than $3.50, .00G. while the total re.
serves held are over $500. 900. 600. and,
In addition, moro than 10000. 600 Is
held by Federal rCsCrv" agents as spc.
cial security againast Federal reserve
notes. About nnc.fourth of the coun.
try's stock ~ gold is thus modified
in the hands OF the Federal reserve
banks and agents.
THE increasing strength and chi.
cheney of the Federal reserve banks
have enabled them 10 enlarge their dir.
ect service to the business community
, through the Introduction Of a 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 below a az per
cent basis. Rates OF interest through.
ont the country have hann rehmcnh and