OVER THE AIR.

Auckland Star, Volume LXV, Issue 204, 29 August 1934, Page 7

OVER THE AIR.

FIRST ADDRESS.

AMERICAN TREASURER

Budgetary Situation Outlined

In Detail

NEW STABILISATION FUND

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

(Received 2.30 p.m.)

WASHINGTON, August 28.

For the first time since he assumed the difficult task of guiding the administration of the finances, Mr. Henry Morgenthau, Secretary of the Treasury, addressed the nation over the radio to-night outlining, in considerable detail, the Budgetary situation, the size of the deficit and how the Treasury hoped to reduce it.

The most significant part of the speech was the revelation that the 2,800,000,000 dollars "gold profit" accruing from the devaluation of the dollar were now earmarked in tho Treasury for the dollar stabilisation fund. It will "eventually" bo used to pay part of the national debt.

This naturally entails a measure of currency inflation, with currency printed against bullion and released for circulation. However, the word "eventually" is interpreted to mean at such a time as the financial structure is thoroughly sound and able to absorb it.

Mr. Morgenthau fixed the public debt at 27,000,000,000 dollars. However, it is actually less, with 1,800,000,000 cash in the Treasury, gold profits to come and the eventual or at least partial repayment of billions loaned to banks, corporations, home owners, farmers, etc.

He frankly admitted that the Administration was still spending in excess of its income and was likely so to continue for some time, but the Administration was confident that economic recovery would justify the expenditure.

VERGE OF UPHEAVAL.

Last-Minute Negotiations in U.S. Textile Dispute.

POSSIBILITY OF VIOLENCE,

WASHINGTON, August 28,

Faced with the largest industrial strike, either actual or threatened, under the "new deal" the officials of the National Labour Relations Board yesterday started a series of lastminute negotiations in an effort to prevent the strike of between 750,000 and 1,000,000 textile workers called for next Saturday.

Only the cotton workers have been definitely ordered to strike, but the silk, woollen and rayon workers are expected to follow almost immediately.

The unions are demanding a complete revision of the N.R.A. code, the granting of fewer hours of work and higher wages. The employers insist that, with raw cotton prices higher and sales in a slump, the demands cannot be met.

It is admitted by the unions that they havo less than 1,000,000 dollars in their treasury which will not last long unless the Government aids the strikers and their families, who will total about 3,000,000 people.

The relief administrators gay they are bound to extend aid to all destitute persons, and will do so to strikers unless the Department of Labour declares-the strike "unreasonable."

The possibility of violence is foreseen as the unionists allege that mill owners in Alabama and elsewhere are' accumulating machine-guns and other weapons.