Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-12-10
PROGRESS MADE
/Nauks.,,.l e.> No. 49,,

PROGRESS MADE
Continued from Page .one)
the McFadden branch banking bill
without the Hull amendment re-
stricting branch banking in the
future.
The financial and industrial out
look received the lions share OF at
tention in the report. Mr.. Mellon
declared the domestic situation was
such that I'VE can look forward to
another satisfactory year. The
strength of the prosperity, he added,
is the "broadness OF its base" and
while spending has increased, 50
have saving accounts, life insurance
writings and the purchasing OF
sound securities by small investors.
The nations prosperity is shared
by the Treasury, the Secretary re-
ported, but he again demanded a
years test Of the new revenue law
before sanctioning any revision OF
the tax rates. He endorsed as a
permanent policy. however, the pro-
posal of President Coolidge to re-
turn to the taxpayers the large sur
pulses of the government such as
will be available this year.
In suggesting that Congress make
no move to continue the life Of the
War Debt Funding Commission,
which expires next February, Mr..
Mellon declared the work OF the
Commission had virtually been COM
pleted. He did not even mention
the possibility of further negotia-
tons with France, which appears
dissatisfied with the agreement eff
fected by her representatives in con-
sultation with the Commission, and
has not yet ratified it. He empha-
sized that this government has
maintained a consistent policy
against cancellation, and quoted at
length the discussions between for
elgn representatives and American
officials at the time the war loans
were made, as well as statements
by President Wilson, to show that
there had been no thought of can
collation. from the very outset.
The Commission has negotiated
settlements representing S9,S11,094,-
O94 or 81 per cent of the total, the
Secretary said. While Greece has
not concluded a settlement, he sug-
gested that if negotiations are nee
essary these might be conducted by
such members of the commission
as are available.
Reporting progress in the en-
forcement of the prohibition law.
Mr.. Mellon declared that if given the
legislation requested, 1.-The Treasury
feels confident that it's reorganized
force, given the essential coopera
ton and assistance of the Depart
ment of Justice, will be able, in the
future, to achieve even greater ef-
references in the enforcement Of
this law"
He believed the reorganized pro-
hlblt1on staff under the direction of
Assistant Secretary Andrews had in
the last year effectively stopped rum
smuggling and had gained the up
per hand on the diversion of in
dustrial alcohol and illicit distilline.
He emphasized that the fedora!
forces were centering their atten-
ton on the sources of supplies and
expected local authorities to reas-
sumo their responsibilities of law
enforcemenr.
Pronouncing the debt situation of
the government sound, MIR. Mellon
pointed out that in the seven years
since the close of the war the public
debt has been cut by $5,S41,2S9.
TO $l9,b43, 216,315 on last July 1. A
reduction of 1872. 977,572 was made
in the last year. I'VE have worked
hard and we have progressed" the
Secretary continued. During the
year commodity prices generally
have declined slightly and farm
prices have not yet been restored to
their relative position as compared
with all prices.
There is little unemployment
and wages are good. Industry is
active. There Is a close margin
between costs and prices which has
made competition severe, but due to
the great volume OF business and
quantity production profits. small in
each transaction, have been large in
the aggregate. The most notable
Improvement has been the restora-
ton of the railroads to their proper
place in the community. The rail-
roads are one of the principal
factors in the strength of this coun-
try"
Mr.. Mellon endorsed the prin-
clples of installment buying ana
the making of foreign loans, with
proper caution in each. Installment
buying is no menace, he said, if the
article has a real and permanent
value and if the payments are not
made too light in an effort to stiinu-
iate consumption in times Of de-
cline.
He said the Treasury was not
passing upon the soundness of mar
ticular foreign loans, problem en-
tlrely for private bankers.
IF foreign loan is productive
and by that l mean that the debtor
out of the use of the money borrow
terest, and make a profit for itself
then / think foreign loans are
sound" he said.
Warning against the trend in in
vestments and loans on securities
without proportionate increase in
short term commercial bills, how
ever. he continued:
Since it is the latter which are
the most easily liquidated, we are
gradually noting decline in assets
which may be rediscOunted at the
Federal Reserve banks and thus IN
what may be called the liquiditv of
bank assets. This trend has in no
way endangered the strength of our
banking system, but it is a move
ment which may require care lest IL
go too far"
He also suggested that there
might have been some oyerbuilding.
but called attention that this and
other unhealthy situations includ-
ing the "land boom in Florida" had
subsidized without serious injury.
Likewise. the bumper crop may hurt
the growers temporarily, he said.
but on the other hand it will give
the textile industry an opportunity
for recovery.
Urging the necessity for main
tanning adequate tax rates until the
real measure of present prosperity
and power Of the present revenue
bill had been made, Mr. Mellon saio
he had no objection to returning
this years prospective surplus by a
credit to income taxpayers of 30 per
cent on each Of their first two in
StallmentS~ next year. Droposa1