New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-07
M'ADOO REPORTS
ON U. S. FINANCES
Balance of S115,000,0 900 for
June, 1917, but Deficit OF
S1S5.000,000 in 1918

Washington. Dec Secretary Nc
Adoo's annual report OF the govern
ment's finances, presented to Congress
to-day, estimates that the fiscal year
ending June 80. 1917. will show bal
ance Of Sll50O0,0O0 in the general fund,
but that the figures year later-June
80. l9lS-win show deficit In the gen
eral fund Of Sls5,000,000.
Preliminary estimates place the cost
Of conducting the government for the
coming fiscal year 1915. exclusive Of the
postal service, which Is expected TO be
self-sustsining, and other deductions,
at $l,27s,O2l 900. The ordinary receipts
for the fiscal year 1918 he estimates st
1895, $4,000, which is S2S2,+7l 900 less
than the estimated expense.
Estimates Of large expenditures for
national defence carry the estimated
outlay beyond the estimated income.
Gold Stock Largest in World
For the fiscal year 1916, now drawing
20 close, the Secretary reports great
prosperity and expresses greatest con
fidence for the future. Continuing, he
says:
"The financial strength Of the United
Ststes-the greatest IN our history
gives Us commanding position IN
world finance. We have been trans
formed from a debtor into 4 creditor
nation. on November /, 1916, the stock
OF gold coin and bullion IN the United
.cfr O. 40 "a q .lN ltf @
an increase of S7l4597.s04 IN the last
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
abundant supply OF gold as a basis the
credit resources Of the United States
have become more than sufficient for
home demand, and We have been able
10 finance our great domestic and for
eign trade without strain and 10 eX-
tend vast amounts Of credit 10 other
nations throughout the world.
"The experience Of the last two years
has brought into strong relief the vaIle
Of the Federal Reserve system. IL is
not too much 20 say that our great
prosperity could not exist without IT,
The usefulness Of the system has been
broadened recently by the amendatory
act OF September Z, 1916, which rem
ders it more attractive TO member
banks and increases the scope and ser
vices Of the Federal Reserve banks.
due 10 the transference OF vault
and other reserves 10 Federal Reserve
banks. authorized by the original act
and amendatory act, the resources OF
said banks are now more than $780,
10000. while the total reserves held
are over 400.O00.00o, and, in addition,
more than S230.0O0,000 is held by Fed
cral Reserve AGENTS as special security
against Federal 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.
Effect of Reserve System
ut 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 extraordl-
nary needs Of business, but 1t mas
established confidence securely. Busl-
ness has been able TO 90 forward with
out apprehension, and the several
crises which the country mas laced IN
its international relations during the
last two years have been accompanied
bv no disturbances and have caused not
even a trcmor in the financial world.
"If we make intelligent use OF our
great power ard exceptional financial
resources we can cope successfully WIN
any conditions the future may de-
NelOp."