Weekly journal-miner., 1917-12-12
THRIFT, KEYNOTE OF M'ADO0'S
 MESSAGE

WASHINGTON, Dec. S.-Secre- tary of the Treasury McAdoo maHes thrift the keynote of his annual re- port to Congress. The people must save,' he says, and invest in gov ernment bonds. It is as imperative 10 sustain the governments credit as 1t IS to sustain our armies. l have indulgcd in the hope that additional bonds could be sold on such reason able terms that the remainder of the funds required to meet estimated ex- penditures for 1918 might be raised by these means and thus escape addi- tional revenue legislation at this scs- sion of congress. It IS my earnest conviction that the general economy of the country should be permitted to rcadjust itself to revenue laws before consideration should be given to the imposition of additional tax burdens.
 Of the possibility that interest rates on future Liberty Bonds issues might be raised the secretary said: "If a SlludllOll >llOulu NlltlO lnO government could not sell convertible and partly tax exempt bonds upon a four per cent basis. 1t would, 1 be- lievc. become necessary to seriously consider further revenue legislation. In my judgment an increase in the rate of interest Of such bonds would be extremely unwisc and hurtful
 Secretary McAdoo disclosed that he intends to recommend to congress later in the session constructive and regulatory laws to prevent capital from going into public or private en- tcrprises unnecessarily for the war
 Tt may also become necessary" Inc added, ito concert some constructive measures through which essential credits may be provided for those in dustrics and enterprises in the coun- try essential 10 the efficient and sue ccssful conduct of the war. The sub ject requires the best thought and study. IL is receiving most earnest consideration.
 "Thc courage and resources of the nation arc so abundant that Amcrica's success in the war is beyond question if they arc properly organized and used. The economic and financial condition of the country was never so strong and Americas spirit was never more aroused to the import ancc and necessity of going forward, rcsolutcly and regardless of sacrifice to the accomplishment of the great task to which God has called us."
 The federal reserve system rcceiv- ed Secretary McAdoo's praise for its part in the war financing program He pleaded for further strengthening of the reserve system by the entrance of State Banks and trust companies
 Intelligent men all over the coun- try" he said, "arc beginning to real izc that the financial power of the United States should be strengthened to the utmost limit, ii we arc to meet successfully the tremendous strain upon our resources occasioncd by our own part in the war and the credits which it is essential that we should extend 10 the foreign governments cooperating with us in the war and if we are to be equal to the demands. in large measure at least, of world leadership which will inevitably be thrust on Us as result of this war
 Financial strength can come along from a consolidation of the financial powers of the country under ono homogeneous system. It cannot be had under the present arrangement involving as it does forty-ninc scpar- ate banking systems or banking con trols in the United States. In the Federal system we have the one CO., hcsivc and powerful financial organ izationS: in inc country in addition to the Federal system WIG have 4S systems authorized and administered under the laws of each of the States oi the Union"