TOO FAST.

Auckland Star, Volume LXII, Issue 209, 4 September 1931, Page 7

TOO FAST.

AMERICA'S SPENDING.

Drastic Measures to Balance

Budget.

HUGE LOAN OVERSUBSCRIBED

(United P.A.—Electric Telegraph—Copyright)

(Received 12.30 p.m.) WASHINGTON, September 3. With the disparity between revenue and expenditure steadily mounting, the deficit for the first two months of the fiscal year already being about £80,000,000, the President, Mr. Hoover, yesterday called into conference Mr. W. Wood, chairman of the Appropriations Committee of the House of Representatives. Mr. Wood later announced that drastic cuts would be made in the Army, Navy and Federal Farm Board appropriations as well as those of other Government Departments in order to avoid sharp increases in national taxation. "The Government inust bo more sober in spending," said Mr. Wood. "When the people were spending like drunkards they did. not object to the Government's spending in the same way, but the situation lias changed. If we can only cut down unnecessary expenditure we can gradually balance the Budget." The 800,000,000-dollar long-term bond issue (about £160,000,000), repayable at the Government's option after 20 years and bearing interest at 3 per cent, has been oversubscribed. The issue was offered owing to the dwindling resources and in order to meet the rapidly increasing deficit.