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Show SAYS COM III HECOVER FHDMSLUMP Secretary McAdoo, in Annual An-nual Report, Declares Danger Point Is Past MAY SEND GOLD BY PARCEL POST The Treasury Department Would Then Save Large Sums Paid to Express Companies. tv a ? K I XG TON". Dec, P. Secretary Mc-S-x in Ms annual reron to congress to-av to-av cuthced at length tha steps taken vt. treat-ury department to restore cor fl i o n e and u p p o : t American b u s 1 -r.-?5. shaken and weakened by the Kuro-ejiri Kuro-ejiri war. "A catatrvr(,e of calamitous pror-or-v.:z&" sa-3 the report, "waa narrowly averted. It is a tnoute to the economic r.reTt soundness of the country asd ta the patriot ism of It a people In every class and walk of life that the sio-.'k has been so admirably withstood. A panic of cataclysmic proportion? might er.s-.v have resulted and. if It had. the i-'ury to tie country would have b-en iM&Icuiarle and many years would have seen rt-QUlred to overcome its effects." By formation of t-ve $:fv.eO'0CO roM pool, the 3lS3,OvO,rOO cotton loan fund, ia-t-.es cf emergency currency and the deposit de-posit of crop-moving money in national , .-srJss, the situation was relieved and lociidence was revived, the report siji, Danger Is Passed. "Ts roach the prcrcpt ar.d effect ire 3c-t.oz 3c-t.oz cS ti.e treasury devjrtment and with : cordial and intelligent co-operation r! tie banklcg and business interests of :rs country, tha danger baa been sorted," says the report. "Confliencc lias been restored and spe-:'e spe-:'e rajments have been maintained In :'z face of the world. At no time since L:e war broke out has there been, to u-.e knowledge of thia department, with :e exception of a few Isolated cases, a rll ire on the part of any solvent na-: na-: rl bank to honor Its checks in ctir---r : v or rr.on e y or to rr.eet its o b" '.3, -::c-s. The ceneral revival of business :irojghout the country is the be t evi-rce evi-rce confidence has been restored. T:eyt :s everv reason why the country i-.-f-M ic---k forward to the future with '0-::dence so far as its trade, commerce &r.d Industry are concerned." Gold Reduction Small. I e-.'-.e of drains from Europe, w-here ' h ration owed about J 4. "0. '"'CO.? 00 at Lhe :-iibrtas of the war. Secretary McAdoo rv-s that the tres.su.ry s sold holdings f.icw a reduction of only S;3. 655,179 on : 1 --tober 1. 1.-14. compared with hold- ! !rzs of ll.:5.21&."57 on June SO. 1?13. Secretary McAdoo referred in some de- , ail to h;S action against bank which, ! e rurhSv announces, were bearding i rp trnr.fvpilir-i up reserves and cfcag- . j-vj interest rates without good rv'se. It was a disagreeable duty, he Fai-i. b it ore which resulted !n a de- termination on h!a own part to -withdraw Eovemmert deposits from banks not us--jz such funds for the benefit of their c:-T.T. urn ties. "This action," he said, "had a salu-:a salu-:a influence, because it was followed tv'a general loosening up of credits; ard while it Is not for a moment ron--c-qed that the improvement is attributable attrib-utable wro'Jv to the action of the der-art- r j- iP revertheiej-a, believed to nave 'ai a beneficial effect upon the situation." situa-tion." Reviews Year's Work. K- McAdoo' a report i devoted largely to a review of the activities of his department de-partment for the fiscal year ended on J-r.e CO, before the war began, but he in-c' in-c' tided dea:2ed statements of the "easur.-'s participation in varions postwar post-war prc-mems. The secretary makes sevpral recom-rr.er-iarions. He rjjrests to congress that the war revenue tax law shouid not e.x P-re December 31, 1&15, but that Its operation op-eration should be extended until the end of the European war by proclamation of th president Discussing the Income tax law, the secretary sec-retary advocated a change in the law w that persons having a rtoss income of i iCOOO be required to make a return tn--tead of thoeei persons with a net income jf that amount or over. "ach an amendment." be says. "wouM dmplify the administration of the law, i-'sure more complete returns and materially mate-rially increase the income tax revenue, r.d save an immense amount of expense j 0 which the government !s now subjected j h maintaining a sufficient corps of in- i specters and investigators to hunt out the ' People who havq failed to make returns." , He recommends also the repeaJ of the 1 revisions by which taxes do not accrue ; Jntil ten days after the close of the fiscal ' j'tar and would make them accrue July 1 each year. 1 Obstacles Overcome. i Although the law did not produce the revenue expected, the secretary says, it as proved -"atlsfactory, and explains the jwmlnistratlon of a law of that character nas many obstacles to overcome at the cutset and that people are unaccustomed must be educated to it. J tables of returns, Mr. Mc- a-o infer? that there must be many who .I?4 to ay the tax. 't i? ritar." he ea-s, "that there were of persons who failed aJto-7 aJto-7 r:r- mke a return as required by pvr. The remedy ror this, of course, is o nave t--fj collectors of Internal revenue J- -a'jh district make an assessment upon ' nco. in the opinion of the collector 3-e i;ar,!e to tne tax. and in addition, to cax- lnvfes;t!eatlon as mav be nec- i,,!1!y 10 riAtermine who in each district i'.e fa:J: jo make proper returns. The perienire of tho dei;artment fihowg that t r'-'" erroneous and faulty returns hiive riil rcacle-" T'I!,5 -urk "'f discovering b -n cae?t he ad.is. Is ieing pushed for- ,.r-collection of revenue for the fi'cal srr enfi June 30, 1P14," nav Mr. Mr-''XJ', Mr-''XJ', "fen5's the success of the taiiff ptonc-r X. 11' 13, as a revenue !VT:r-r"" -fJe goes on to jay that this v - f'.a- eeiimated ay the producer of 1.;' -'- j.'.OI'O in its f i rt vear and that 7:;.': actuallv collected S2f-2.220.O14. If.': '".'J'ever, included nine months un- V ncw iaw an t'lfce months unrter j..; 'J&' ne-Aldrich law. He shows that t"- tf'Tr:! ra;?f ur.c-r the new law with 1. . c'rro.-a t;r.n ar,-j income tax features JJ" ?i';,7Ci.2&s or in excess of , r,;, J-.r'v- 1S y'-ar'f r'-'-tpts under the ... ; 'iiiC rf;". f-.n 1 : r pica ,;urf-. -e ijriptrao war,'' iawl tho eccre- tarr, "serious".? affected the revenues or tho" government from lmrj.irt- The revenue rev-enue from customs i?r October. ?14, '' J16.271,:? and for October. 1!13. '.: was j.?0.1S.043, a decree?" of $".3.s r'. Tb reduction ia soieiy due to 'he fa'.iinsr eft in inrjortatlon. Tie estimate made by the department indicated a yearly decrease de-crease of between town C:-y and OC'O.OC-O. It is orr-ious that theFe estimates cannot be accurate, bp r.o we ran forecast fore-cast the course of events while the titanic strugrie in Europe is in proeref. To ke-ep the treasury In strong ccrdjtlon tn these abnormaJ tlme3 was obviouy the first duty of tr.e hour. I'pon it largely depended the safety of business and finance fi-nance in this country." Would Unite Services. Mr. JlcAdoo again recommended to congress con-gress the consohdEtion of the revenue cutter and life-saving service, to bear the name "roast guard service." He urged the building of two more revenue cutters and the appropriation for a leprosarium fr the use of the public health prvice. He announced that-the treasury depan:-mer-t if making a study of the facilities of the parcel post in the transportation of monev and securities between the treasure, treas-ure, subtreasurles and banks. He points out that the total payments for such service ser-vice to express companies during the last three years have averr.gpd S375.O00 and expre?ses the hope that a plan for the ufe of the malls In conjunction with the express companies can be worked out to effect a large saving and also to insure a much faster delivery service. He asks congress once more to give him a contingent con-tingent fund of $20,'O to make effective Investigations, eradicating abuses, etc. Summaries of reports of his bureau chiefs are Included In the report. United States Treasurer Jhn Burke advises the authorization author-ization of a t7 gold certificate. The revenue cutter service asks for a coLter for use nar the Panama canal zone. Secretary McAdoo points out that the federal reserve re-serve board wil make a separate report. Estimates Receipts. Secretary McAdoo estimates the re- j celpts of the government, tor the fiscal year 1015, ending June 30. at $72,100.000. I including $220. 000, 000 from customs and ; $.:.4, 000.000 from emergency war tax. Exclusive Ex-clusive of the Panama canai. he places disbursement at JTlO.OftO.C'OO for the current cur-rent year. Counting upon JaS.OOO.OflO for the canal out of the treasurj-s general fund he places The excess of disbursements disburse-ments at $10,000,000. For the flcal year, which ends June 20, 1916, Mr. McAdoo says he expects receipts re-ceipts amounting to 5T35.000.OCO with customs cus-toms bringing $24O.0'"u,0O0 and the emergency emer-gency war tax $44.000,mmO. The secretary secre-tary places ordinarv expenditures for that year at $713.76?. 105. with $1.000.-00 $1.000.-00 additional for the Panama canal, leaving leav-ing a slight surplus. In his estimates, Mr. McAdoo puts the return from the Income tax for the current cur-rent fiscal vear at $"-. I'OO.f'OO; $40,000,0-00 from Individuals and $40,000,000 from corporations. cor-porations. For 1918 he expects the same tax to produce $.55,000,000. half to be paid by individuals, half by corporations. |