Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-12-06
McADOO SEES BIG
DEFICIT IN 1918
Secretary Of Treasury Submits Annual
Report and Recommsndations-Urgss
Amendment Of Anti Narcotic Law to
Relieve Drug Users.

Amendment Of Anti Narcotic Law to
Relieve Drug Users.
Washington. Dec. 6.-secretary Nc
Adoo's annual report of the govern
ment.s finances, presented to congress
today, estimates that the fiscal year
ending June 30, 1917, will show a bal
ance of s115,00o,000 in the general fund
bur that the figures year later-June
80, 191s-wilI show deficit in the gen.
eral fund Of $1s5.o0O,O00.
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-
tions, at $l,27S,021 900. The ordinary
receipts for the fiscal year 1918 he es-
Inmates at $685., 900, which Is $685.
471, ,00o less than the estimated ex-
|pense.
Estimates Of large expenditures for
national defense carry the estimated
outlay beyond the estimated income.
For the fiscal year 1915 now draw
ing to Close, the secreary reports
great prosperity and expresses great
est confidence 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 lif1us4 thruout the United
StateA Fun1niIle -esA -scunomic condi-
tions 11ave never. been more sound. In
all lines Of industry efficiency or or
Eganization and production have reach-
ed the highest point in the country's
history. General confidence in the fu-
ture, healthful enterprise and develop
ment have been marked characteristics
of the year.
"The financial strength of the Unit
ed States-the greatest in our history
gives US commanding position in
world finance. We have been trans
formed from a debtor into creditor
nation. On Nov. /, 1916. the stock Of
gold coin and bullion in the United
States was estimated at s2,700. 81. .976,
an increase of $714,597,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. Thru the operations of the Fed
eral Reserve System and with our
abundant supply of gold as 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 for
eign trade without strain and TO ex-
tend vast amounts of credit to other
nations thruout the world.
"The experience Of the past two
years has brought into strong relief
the value of the Federal Reserve Sys-
tenn. It is not too much to say that
our great prosperity could not exist
without it. The usefulness of the sys-
tenn has been brOadened recently by
the amendatory act of Sept. z, 1916,
which renders it more attractive 10
member banks and increases the scope
and services OF the federal reserve
banks Due to the transference of vault
and other reserves to federal reserve
banks, authorized by the original act
and amendatory act, the resources of
said banks are now more than $780,
600, 900, while the total reserves held
are over $40O, 1000. 900, and, in addition,
more than $3.50, 900. 900 is held by fed
eral reserve agents as special security
against federal reserve notes. About
one-f fourth of the country's stock of
gold is thus mobilized in the hands of
the federal reserve banks and agents
"It would have been impossible to
finance our vast domestic and foreign
trade without the facilities provided
by the Federal Reserve System. Not
only has IL met the normal and extra
ordinary needs of business. but it has
established confidence securely. Busi-
ness has been able to go forward with
out apprehension and the several crises
which the country has faced in its in
ternational relations during the past
two years nave been accompanied by
no disturbances and have caused not
even trenor in the financial world.
The crops Of 1915 and 1915 were
financed without difficulty and to the
great advantage Of the farmers, and
the industrial troubles which at one
time seemed imminent, because Of the
threatened railway strike last summer.
were not accompanied by the slightest
financial uneasiness
Mr.. McAdoo points out that for the
year the value of imports was about
$4S4, ,00O, 900 greater than the pfevious
year and those of exports $2,76s, ,58s, $40
greater. 4. :. ; i, ~
Congress is asked to amend the anti
narcotic law in view of the supreme
court interpretation OF the clause re-
lating to drugs In possession and to
provide funds to care for drug addictsl
thru government treatment
.'To cut or suddenly the supply OF |
drugs without curing the addict OF his
cravings or making any provision forI
the amelioratien OF his sufferings,
says the report, ..is not only tnhuman
but encourages evasions OF the law"