El Paso herald. (El Paso, Tex.) 1901-1931, 1916-12-06
NJ AD00 CAN SEE
DEFICIT COMING
( Financial Strength of Ma
ton, However, Is Greatest
in Country's History


Washington. D. c, Dec 6.-Secretary
NcA5oo'z annual report Of the govern
ment-s finances. presented to congress
TO-DAY. estimates that the fiscal year
ending June 80. 1917. VIII show bal
snce Of s115.OOO.0O0 in the general fund
? hut that the figurs year later-June
20. 1913. VIII show a deficit in the
general fund OF s1S5, 100000
Preliminary estimates place the cost
OF conducting the government for the
coming fiscal year 1913. exclusive Of
the postal service which is expected
to be self sustaining and other deduc-
lions. At s1,e7s. oal. 900. The ordinary
receipts for the fiscal year 1918 he
r estimates at s9s5.55O,O06 which IS
S2S2.4I1.e00 less than the eslimaleu
For the fiscal year now drawing to
a close, the secretary reports Sreal
prosperity and Expresses greatest con-
IIdence for the future
[. =. Leads In World Finance
The financial strength OF the United
States-the greatest in our history
gives us commanding position IN
world finance. We have been trans
formed from q debtor into creditor
nation. On November I. 1916, the stock
OF gold coin and bullion in the nlted
states WIS estimated at g. wv -'1-r'
an increase of s714591.Set in the past
1e months. This Is the largest stock
of gold ever held in the United states
or in any other country OF the world
says the report
THE experience Of the past two years
has brought into strong relief The value
of the federal reserve system Que 10
the transfer of vault and other re-
serves 10 federal reserve banks. the
resources Of said banks are now more
than S650.000.000, while the total re
serves held are over S4Ovvuu."uc- anu
in addition more than S23U,U0O,uvO 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 modified
in the hands of the federal reserve
banks and agents.
business Has Been Stabilized.
The Increasing strength and eff
cheney of the federal reserve banks
have enabled them TO enlarge their
direct service to the business COM
munirv-
Rates Of discount at federal re-
O. serve banks have continued low
throughout the year. and most Of their
open market paper. consisting largely
Of acceptances growing ont OF for
eign trade, has been taken below A I
. - percent basis Rates Of interest !
, throughout the country have been re- I
duced and stabilized
Business has been able to 90 for |
ard Wtlhoul apprehension ana the
several crises MnlFn the country mas I
laced IN its international relations dur
ing tie past two years have been &C ]
companied by no disturbances and /
have caused not even tremor in the /
financial world The crops Of 1915 and 1
1916 were financed without difficulty i
and TO the great advantage OF the !
farmers. and The Industrial troubles /
which al one time seemed imminent :
because Of the threatened railway !
strike last summer. We're not accom- 4
panied by the slightest financial I'M !
easinesS
PORK Barrel Public buildings.
One Of the features of the report
IS a discussion Of present methods OF
constructing public buildings
Il am convinced says the secretary.
that the methods pursued by the con
gress for the past j. years Of prOvid- !
ing federal buildings through socalled
Omnibusp ublic-building bills have re-
suited in the construction Of many I
public buildings in small towns and !
localities where they are not needed.
and at cost which is clearly unfusti- !
fled by any actual requirements
Common sense and business judE- |
ment would seem TO demand thar build
ings should not be erected where no 4
public necessity can he shown This !
result can be accomplished by divorc- /
ing the public building question from I
all local or political considerations and /
authorizing no public buildings until
n thorough and Intelligent iuVestiga- /
ton of each proposed building or pro- |
1ect has been made TO this department |
ana a full report thereon has been sub
mitted to congress
Fayars War Risk Bureau
The federal war risk insurance bu-
reau, M McAdOo says. should be ex-
tended a year TO September = 1915 |
since congress might not be in session
next september and il would be i'm
possible then to continue the work If
the European war is still IN progress /
and serious injury 10 American bust
ness might result. The report saws uD-
to November Il nearly 100 policies 1
were written by the bureau with total
risk of more than S14.610-o0o and |
losses amounting TO SSS3.S24- Premiums /
amounted TO s3,I42.535.
Customs Revenues Increase.
In speaking Of customs revenues
which increased about So. 500 600 over
the previous year. the secretary SAYS
the European conflict is still interior /
ing with such receipts
Appropriations are asked 10 enable
the public health service to prosecute J
nTestigation of infantile paralysis and |
fer the aviation section Of the coast
guard, authorized but given no funds
by congress
-. I,ooTo. H. NJ