Omaha daily bee., 1916-12-07
M ADOO PREDICTS
LARGE DEFICIT
Shortage in General Fund at
End Of Coming Fiscal Year
Will Be S185,000,000
STOCK OF GOLD IS LARGE

Washington, Dec. o.-Secretary NC
Adoo's annual report of the govern
.,,,e s,,rces ,,escpted m copores
-. 49,, a.. e,o.I '...-
touay' es''iiia.es 'na' tne n''" ea'
ending June 50, 1917, will show a bal
ance of Slls,000,000 in the general
f,,d h,t that the 6oures wear later
- ,o,o M - 49,, :,
June ", isloJw W ei Sno ooo nno ' Ill
thg genera luna oi Sio', w. ~ ..
rreii,nlhary estiilidles pIaSe ' ne Isl 80.
OF cohuuetnlg 'he Io.o hn'en n,. ~, u nf
eoliiins lseai yea' iJio; ',us,se u
.ne posifi , sesao " nnd o, =, .A 3ed,c
IONS ~ 81 2z8 oil nm The ordinary
receipts for the fiscal year 1918 he es-
Inmates at 1895, $4,000, which is $780,
All 900 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 1916, now draw
ing to a close, the secretary reports
great prosperity and expresses great
est confidence for the future. During
the last 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 economic con-
ditions have never been more sound.
In all lines of industry efficiency of
organization and production have
reached the highest point in the coun-
try's history. General confidence in
the future, healthful enterprise and de-
velopment have been marked charac-
teiistics OF inc year.
United States Creditor Nation.
THE hnahcial strength of the
United States-the greatest in our
history-gives us commanding posi-
ton in world finance. We have been
transformed from a debtor into a
creditor nation. On November l., 1916,
the stock of gold coin and bullion in
the United States was estimated at
s., 700, l36,975, an increase Of $7l4,597,-
804 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 sys-
tenn 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 to finance our
great domestic and foreign trade with
out strain and to extend vast amounts
OF credit to other nations throughout
the world.
Reserve Praised Svstem.
or, -:.. g ~. H.. a..
ING eAPelienSe 81 VI. o ,as' a,s
years mas pioash sI Ln.o snons sn
wy SsIue " .ns .eu ~
s.n' - " W. ~ null oe,,,d ~ sa us.
~. s !. p Tha ,,.ef,,,r.ss 1 &c ~. sns
W. msnI ~. = -. II 10y danaI 1917, T.,
. I'm mas g J pios %. as cess 1919 y
,n1s ,.,s;nh .a.d. !. o.a s..r.c.;ns
~, m hanLs "a ;,c.sasas H.
- and ssrn;css &c tbs feds,sI -es
ssr. h.nts nue ~ ~. ,,ansfersrce
- s,.i. "a a.h.r s.sar,as - sadar,i
= ~a ha.Ls a,,.har;r.d -, ~ 800;
III ~. snd ,msndatoru ~ n. 20.
sa',rcs - s.;d hanLs 20 rou ,rors
shan s6sG oo0 mn, mh;,s ~ ,ot,i ~
sarves helJ sre over cam nm mn and
in addition. more than $3.50 0O0, 900 is
held by federal reserve agents as spe-
cial security against federal reserve
notes. About one-fourth Of the coun-
try's stock of gold is thus mobilized
in the hands of the federal reserve
banks and agents.
THE increasing strength and eff
/ Its !. .,s a. - ~