Evening star., 1928-12-05

"A NATIVE {
equipment also increased, but land val
ues declined slightly, so that the net
inventory increase was estimated at
$l32, 900, 900. = ~"-
"A survey of all the products indi-
Gates that the improvement was con-
fined primarily to cotton and grain.
particularly corn. While the gross in
come from these crops increased, the
total gross income from meat products
products, and fruits and vegetables de-
creased Since the close of the fiscal
year. however, the position of producers
OF animal products has been more fa-
vorablea owing to the abundance of
EheAp feed. crops and advancing prices
for animal products
E & :. s. 49, - Enfotcefhena Lmproved.
..s1 11spfovetnert In .psohibition enforce
naEI1t vas reported by Secretary Mellon,
.wfi6 said. however, that with new meth
DDS OF control. diversion of legal liquor,
including industrial alcohol, was no
longer the major problem Of domestic
law enforcement -tIllicit manufacture
tof spirits from sugars and grain" he
said, = is the principal source OF supply
of the domestic market" He saw signs
of the breaking up OF "the large ana
profitabie ilitit manufacturing opera
smuggfine. frofn the sea had been SO
successfuiiy conbated by the. United
states Coast Guard, the report said,
that ~ethis Illicit traffic has been tre-
mendously reduced and rum row has
been eliminated"
Narcotic drug control was said to
have improved, the Secretary declaring
that IAN even smaller percentage OF
narcotic drugs lawfully brought into
and manufactured within the United
Stats Has 1iiyerted rtos Illicit channels
/ during the past fiscal year than during
the fiscal year 1927"
The Federal building program Tor
both the Mh6le country and the District
SfEomnfbia was described briefly by the
Secretary, who mentioned the 25l proJ.
ects authorized to date, of which 244
are for the country at large, and seven
for the District Of Columbia.
New Money Described.
The new small size paper money ex-
uected to be put into the hands OF the
,uhlc next July was described at some
length. but no new announcement was
made, in addition to previous STATE
ments from the Treasury,
In reviewing the financial situation
Secretary Mellon called attention tnat
the gold stock of the United States de-
creased nearly $500,000,000 from the
81 60O. 600 900 on hand at the beginning
of the wear. The outward movement OF
gold, he says, had had far reachlng
I D is 'lsTt has contributed to the restoration
and fortifcation of the gold basis 1or
the seurrencies Of various countries. II
has,sinfluenced our credit SITUATION aIla
the policy of the Federal Reserve boaro' na
Between June 80, 1927, and june ou
1928, there was an increase OF niolt
than 100000, 900 in the total amour
of credit the Federal reserve pam pam
were called upon to provide, oue iarss
,v IN the unprecedented gold exports
The increase in Federal Reserve creol
took the form of an increase IN Dol
rowing -by member banks. Owing tt
the traditional reluctance Of American
hanks to remain in debt and the potlcS
of the Federal Reserve Banks TO dis'
courage continuous indebtedness, tn'
[ ra AVS sfcund themselves at the close O.
| the year in a position to lend much les
freely than a year previous
/ { : Discount Rate Raised.
The Secretary reviewed the. action o.
the Federal Reserve Board in eaSunl
money rates in 1927 by purchasing Sc
curities in the open market, which wa
| followed by the outward movement %
| Sold and a new low rate for money II
| August of that year.
| When it became apparent last Marci
| that repeated increases in credit wer'
/ taking place for speculative purpose
the Federal Reserve Bank, he said, re
sl1med its sale of securities and dis
| count rates were advanced TO ) pc
cent in all the districts except those o
| Kansas City, Dallas, Minneapolis ant
San Francisco, where they remain
Az per cent.
In the banking situation loans ant
investments OF all banks in TIE countr,
Increased $4,000, 100000. or about 81;
per cent, he pointed out. TITS was tn
largest growth since the year ending
June 80, 1925. --
Four Billion in Receipts.
The total ordinary receipts of tn
Government for the last fiscal year
| C6CEeJdIy MclAOl PihNCO az P1iV1@,oNo'
1856. q decline of $87.000,000 as com
pared with the previous fiscal yeal
Customs receipts declined $36,5o0,O0
to 1859 100000 while income take
dropped S51, 100000 to 900 ,00(
Miscellaneous internal revenue take
declined $23, ,40O, 900 to 1921 ,000,0 900, bu
payments from foreign government
increased So 800 900 to $208, 100000
The total expenditures chargeabl
against ordinary receipts for the flscs
wear the Secretary fixed at $3,643
5l9,875, or $149,935,356 more than i
the preceding year.
For the year the Surplus Of receipt
over expenditures ar Cunted to 1898
828, ,281, but most of it. or 1885,, 1853, III
had been expended by the end of tn
wear in public debt retirements. : 1t wa
$237, 100000 less than the year pre-
. vious.
At the close of the fiscal year til
, gross public debt of the United STATE
: Government amounted to $l76O4, ,29e
: 500 and the net cash balance in tn
general fund of the Treasury was $3.50
t l90,33l. The figures represent a dt
$ crease of $905 ,883, ,713 in the public del
and an increase of $27, ,592,2l0 in tf
l net balance for the year. @
In closing his report SecretaI
, Mellon reiterated his suggestion mac
4 a year ago that Congress remove Ii
/ Surtax from Government securities {
r we'll as the normal tax This, he sal
= would remove the disadvantage. of tt
= Government as compared to Sta
A hordS -. -. =, -. -