LOWER INCOME TAX.

Ashburton Guardian, Volume 50, Issue 47, 5 December 1929, Page 5

LOWER INCOME TAX.

UNITED STATES PROPOSAL. BRIGHT FINANCIAL PICTURE. (United Press Association— Copyright.) (Received This Day, 9.5 a.m.) WASHINGTON, December 4. President Hoover laid before- Congress to-day a recommendation for a reduction of 1 per cent, in the income tax totalling 160,000,000 dollars, and a request for 3,830,449,231 dollars for government use next year. He submitted a#sk&t picture of the state of the nation's finance, and stated thai the reduction of taxation by the last President had undoubtedly increased revenue and given a stimulus to business, partly' responsible for the upward jump in receipts.

A REPORT CONTRADICTED. QUESTION OF EMPLOYMENT(Received This Day, 9.5 a.m.) WASHINGTON, December 4. Considerable surprise was. caused here by the circulation of a report in Australia that the United States Federal Reserve contemplated expansion of the note issue in the interests of unemployment. It is pointed! cut that while the report shows cognisant c of the sensational importance or sucli step it lacks familiarity with the structure or purposes of the Federal Heserve system. The latter was instigated by President Wilson for the purpose cf controlling inflation. Examination of the Federal Reserve Act shows that the main body of notes can be issued only against commercial obligation. This would make impossible any arbitrary expansion. Moreover, the statement that unemployment to any extent, necessitating such desperate financial remedies, existed in the United States or was at all impending, was received with mcredulitv. The Australian report cannot be understood here and is considered fantastic.