Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-12-08
Secretary of Treasury in Re-
port to Congress, Expresses
Greatest Confidence in Flu
ture of the Country
CBy Associated Press. }

ance of slI5. 900, 900 in the general fund
but that the figures a year later-June
80. 1918. will show defiost in the gem
eral fund of S1S5.00O.O0O.
| Preliminary estimates place the cost
of conducting the government for the
coming fiscal year 1918, exclusive OF the
postal service. which is expected to De
| self-sustaining and other deductions, at
sI,2TS,O21. 900. The ordinary receipts Tor
/ the fiscal year 1918 he estimates at
| 1895, $4,000. which is S2s2,47l,OOO 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 drawing
| TO a close, the secretary reports great
prosperity. and expresses greatest con-
/ fidence for the future. During the
past year." the secretary says, the
prosperity which set in so strongly
during the fiscal year 1915 has grown in
strength and volume and is now widely
diffused throughout the United States.
/ Fundamental conditions have never
been more sound. In all lines of indus
/ try efficiency of organization and pro-
duction have reached the highest point
/ in the country's history. General con-
/ fidence in the future, healthy enterprise
and development have been marked
characteristics 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 a debtor into a creditor
nation. on November /, 1916, the stock
| of gold coin and bullion in the United
States was estimated at $4,000, 1876, 976,
an increase of S714,597, S04 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 our
credit resources or the United States
have become more than sufficient for
home demand, and we have been able
| to finance our great domestic and for
eign trade without strain and to extend
vast amounts of credit to other nations
throughout the world.
FEDERAL RESERVE SYSTEM.
THE experience of the past two years
has brought into strong relief the value
of the federal reserve system. II is
not too much to say our great pros
perity could not exist without it. The
usefulness of the system has been
| broadened recently by the amendatory
act Of September Z, 1916, which renders
IL more attractive to member banks and
increases the scope and service of the
federal reserve banks. Due to the
ANA~~4ASANAC4ACC u vault ana OIner re-
serves to federal reserve banks, author
/ lied by the original act and amenda-
tory act, the resources of said banks
are now more than $3.50, 0OO, 0OO while
| the total reserves held are over $780,
100000. and, in addi.ioa, more than
S23O,OO0,OO0 is held by federal reserve
agents as special security against fed
eral reserve notes. About one-fourth of
the countrys stock or gold is thus
modified in the hands of the federal
| reserve banks and agents.
The increasing strength and efficiency
of the federal reserve banks have enabled
them to enlarge their direct service to
the business community through the in
PRODUCTION of definite and comprehen-
sive system for the par clearance OF
checks throughout the country
Rates Of discount at federal reserve
banks have continued low throughout
the year, and most of their open-markst
| papers. consisting largely Of acceptances
growing out OF foreign trade, has been
taken below a 1-2 per cent basis. Rates
OF interest throughout the country have
been reduced and stabilized with great
advantage to the business % the country
1T would have been impossible to H.
nance our vast domestic and foreign
trade without the facilities provided by
the federal reserve system. Not only
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 its international relations
during the past two years have been ac-
| companied by no disturbances and have
caused not even a tremor in the financial
world. The crops of 1915 and 1916 were
financed without difficulty and to the
a a.
| industrial troubles which at one time
seemed imminent, because of the threat
ened railway strike last summer, were
not accompanied by the slightest finan-
cial uneasiness. Happily the country has
| been at peace and business and enter
prises have had the largest opportunity
for favoring development under the most
suspicious conditions.
/ IF we make intelligent. use of our
great power and exceptional financial re-
sources, we can cope successfully with
any conditions the future may develop"
/ One of the features of the report is a
/ discussion of present methods of con-
structing public buildings.
| II am convinced" says the secretary,
that the methods pursued by the con-
gress for the past 10 years of providing
I federal buildings through so-called ON
nibus-public- building bills have resulted
in the construction of many public build
/ ings in small towns and localities where
| they are not needed, and at a cost which
| is clearly unjustihed by any actual re-
/ quirements of the communities in which
/ they are erected. The conclusion IS ir-
resistible that authorizations for public
/ buildings in these small communities are
too frequently dictated by local reasons
4 and without regard TO the best interests
i of the government. The most serious
aspect is this: The annual operation and
maintenance of these buildings impose
| on the treasury a permanent and con
| stantly increasing burden.
/ Common sense ~and business judg-
ment would seem to demand that struc-
| lures for the transaction of government
/ business should be authorized only in
4 localities where they are imperatIvely
I needed, and that buildings should not
5e erected where no public necessity
an be shown. This result can be ac-
emphasized by divorcing the public
,uilding question from all local or po-
itical considerations and authorizing no
/ uublic buildings until thorough and
| intelligent investigation of each pro-
posed building or project has been made
10 this department and a full report
thereon has been submitted to congress-
/ Tf such reports were followed by the
Introduction and passage Of separate
measures TO cover each proposed build
/ ing project the abuses and evils of the
omnibus bill method would be eradi.