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Show 1 COUNTHY NEVER I SO PROSPEROUS, SAYSJH'ADOO Financial Situation Stronger Strong-er Than Ever Before, Declares De-clares Secretary of the Treasury. OPPOSES ANOTHER ISSUE OF BONDS Suggests Other Means of Raising Revenue, Including Includ-ing Retention of Duty on Sugar. WASHINGTON. D,r. )."Ib. linitn-rial linitn-rial bitimtion of this country hiti nrver ' " nrrnnj; hji I so fiivorulile n now," says S.vre!:iry f tho Tim.mry William M.'Ailoo in hi. unnuiil r''urt to thf spoukfr of tho ho-i of r.rci'ntu tiven, which niu milimiltrj to mnsn-i today. "Our finanrial rrsoun'ra ate tlio (jrcntt'st in our history an.l our 1'iinkinj; systorn, through 1 hi cr-ntiou aiul ocra i t ion of tin t.lTjil rr.crto sTstcru. ij do the strongest in tho wor'.J." The so-r.'tiiry a-rrt that the financial finan-cial coinhiion of thi trea-sury is .o ilrin: that, even though, no u Klitiolial revenue rni.-iri- measure. b jut into effect, there mil be B l.alauee in the ceneral funii on June .'M, lulo, of 'H,(i'J.i. ShoulJ the war tai, which tz pires D.-eeinher 31, 191."., be re ena te' and shoubl the one rent a poul.il or HU-ar, which under present law i!l nol "be collectc! after May 1, lUlci, be Von tinned, the net balance in the c:-.eru fund on Jims .10, U'lii, will stand a !".!". '""-'j. r-hould the J."i,'i .ij.U"d ei pi-nditure to b made on the I'anlma cnciil be Hnnneed by the saje of bonds as provi.b-d by law, the net balance or June 30, H'li, would be 7S.;iVi".' according to the secretary. Figures Are Submitted. A recapitulation of the finances ;iowj total ordinary receipts of the tr. i.Mirv for the fiscal year ended Juno 3", I'.Uo, of .'jr,ili),'.27 and total ordinary disbursements dis-bursements of 731,rtM,T.j9, diving deficiency for the year of $ 33, -I SS.iO I . This is merely a deficiency for tho year and does not represent the. treasury a-behind a-behind that much, for it has not vet used up what it eommenced the vear with. The secretary estimates that the total appropriations for the government for the fiscal year ending June 3H, 1017, should bo tH0S,7llf,!'-;l. an increase over 191R appropriations of .I'37,H31.401. The outlook for the fiscal year 1017, which will begin next July, Is not so bripht, Mr. MeAdoo tells congress. In his report, Peeretary McAdoo (in-clarcs (in-clarcs that e bond issue is inadvisable, and says that additional revenue may be raised by ninintainina; the present war tai and the sugar duty; by Increasing Increas-ing the income tat and by greater care i in collections of all taxes. The secretary secre-tary says that it ia as poor policy for a government to subsist on the proceeds of bond sales as for an individual to live on borrowed money. Let tho government gov-ernment procure money through taxation taxa-tion that it need not repay, says .Mr. McAdoo. To Meet Deficiency. In view of this attitude of the secretary secre-tary and the general feeling among administration ad-ministration leaders that retention of tho war tax and the sugar duty is inevitable, in-evitable, it i8 believed hero that tho government will not be deprived of theso sources of revenue, and this being the case, Mr. MeAdoo says, an expenditure expendi-ture of $03,800,000 on tho preparedness programmo will roll up a deficiency of $50,806,304 by Juno 30, 1917, the end of the 1017 fiscal year. To meet this deficiency, de-ficiency, Mr. McAdoo would increase tho internal revenue. He figures that the total increase in revenues needed is $112,806,304, provided $i;5,000,000 worth of Panama canal bonds arc not sold. If the issuo should ho made, that much would be subtracted from the amount of additional revenue required. Mr. MeAdoo 's suggestions for raising rais-ing this additional revenue are to: Increase tho corporation and personal per-sonal income taxes by providing higher rates and, in the easo of the personal Incomo tax, reducing tho $3000 exemption for singlo persons and $1000 exemption for married folk to $2000 and $3000 respectively. respec-tively. Increase the taxes on gasoline, crude and refined oils, horsepower of automobiles and other internal (Continued on Page Four.) PROSPERITY SHOW! li M'ADDD REPORT (Continued from Page One) combust on eng nes and arious other things where collection could be made at the source Cotton Growers Saved Mr McAdoo reports that the co ntr is so prosperous that add t onal tax bur dens can easily be borne Me savs that a s act on n depos t ng $1 j 00U 000 in southern federal rescr e Danks save I the cotton s tuat on and that coon ience has returned e ervwhere throughout the countr bus ness n all 1 nes boom ng phenon enall The federal rese e s) stein has had a successful jear h sajs demonstrat ng tie alue of a n ouc sjsten pro Ing elastic credits O r stock of golt o n and bull on ncrease t from $1 S0 8 6 58) on Jan ar 1915, to $ 108 118 h" on No cmbt I 1915 b far the largest amount of th s precious n ctal e er lell bj anj one co ntry sajs the secrctan The secretary en phas zes the need for a more extens o Hold ser ce of no le tax colle tors There ae w thout do bt wholes le e as o s of the incone tax law throughout the co ntrj, he sa 1 llo says the go em ent is los ng thro gl these o as ons ann all) a s n man t mcs the cost of ad I tonal nc to collect the tax and check p tl c rc turns nale Man) returns arc erronc ous somet moB througl gnorance au 1 somet mes through del 1 eratel ntcut to defra d the government the sccrctar con pis ns Defends His Action Tl c secretary lefends the cha ge he orler I O tober 1 19 lo n the form of the da I troas atatcmept Th s change wh h was atta kel b) Bep bl an feale s an be ng sn attcn pt to ug glr hg es so as to ponceal the alleged inpo r shed pon I t on of tl e treas r was really n ade to put the ac ount ng SVHtc n on a n ore b s nessl ke basis The se retarv also urges the necess t) for re is ng the s ok ng f nd lnws The Un ted Mates s nk ng f n 1 sn s Mc Adoo s a paper fiction or) little act al nono co st t t ng that find A n mber of anenlments to the come tax law are recsmn ended as fol lows Pop re nformallon as to the extent of nepme rather tl an act al w thhol 1 ng at the source except as to non res lent alle s oxe pt cert in nssociat ons anl organi?a t ons ot engaged n ga nf I p ts from the tax 1 roaden the 1 a bit nf fore gn corporations rc q re recel crB tr stees et to make returns proh b t orporat ons from ded t g from taxable in con e on a on of taxes pa d for lo al be efits nkc the Incon tax t n ft e I nstpa 1 of t ne kf) o p n h 1 fl 0 s flieiuyu I su)b thai cuitouia c ptii o tl e fi al ear end June 30 191a ount I to 1 bbOl tmpro cments. the netho h of iro ed c u the col t on. ot custo ns are re om nended To Guard Against Disease the se eta ges that all the po t q arant e Pus ness of the countr) oe re no ed from state jur sdict on and paced nder the federal governnent this espe ally in view of the fa t that the pub c health service rei orts ser ou outbreaks of cholera t ih s and other n al gnaut nfe tious d sea es n hurop Ihese w 11 be transm tted to th s cou tr upon the resumpt on ot mmigration after the war sa s Mr ilcVdoo Secretary 11c Adoo rev ews the woes of the treasury department in conne t on w th the acquisition of p bl c bu Id ng s tes throughout the co trv say ng that large sums ha e been ex pended for worthless real estate lie recon n ends the abol tion of an onin bus publie buildings pork barrel bill and the subst t t on of spec fi legislat on on each p bl build ng or site pro ect 1 on ts n cr ts He sa s that the ml Mtlt t ou of the k crap r t pc o p bl b Hi g for the ol I o eDtnl st) le of btr ture sten s exped nt large t es Iaort) Increased Guard To ch ng ou tie coast g arl M M loo ays this ser ce shoul I be -s panded not only beca se of ts cfh ci t work n sa ng 1 fe and proert but beca se of ts al e as a nat onal de fense a lj n t The coast g ar I s o operatiuj, vi tl tl e na dej t ent on nat onal defense plans he sa)s D r ng the fiscal ear 111 $ Q 18 042 was Bpent on tl e P in anal the sec etar r orts Of th s t U 3t" vas for o st t o on tl e a al i ro er a 1 $7 r 8 9 for the fo t h at o a 1 n scella eo s work lotal ox.pn 1 t res on the Tauana anal to I nc 30 191o arao te I to $ 1 4 1 mo |