U.S.A. GOVERNMENT PLANS

Dominion, Volume 31, Issue 41, 12 November 1937, Page 11

U.S.A. GOVERNMENT PLANS

Curtailment Of Federal Expenditure (Received November’ll, 9 p.m.) New York, November 11. The Secretary of the Treasury, Mr. Henry Morgenthau, in an address said the Administration plans no further “pump priming” expenditures. It plans to balance the 1938-39 Budget by the curtailment of 700,000,000 dollars Federal expenditure on public highways works, unemployment relief, and agricultural assistance. He appealed to the business industry and agricultural interests to co-operate toward the desired ends.

Mr. Morgenthau admitted that business indices had recently shown a declining tendency, but said the country was nearing the end of one of the most active years in its business history. He urged that capital should enter productive channels in private industry. The Washington correspondent of the "New York Times” states plans for stimulating a nation-wide private housing programme are emerging from the conference between President Roosevelt and five business leaders and Government advisers. The programme is designed to stimulate residential and industrial construction backed entirely by private capital. It is believed consideration is being given to the employment of social security reserve funds to foster a gigantic industrial and building drive. This would make possible the balancing of the Federal Budget and yet make available large sums of money for industrial loans. Other likely steps are relaxation of burdensome taxes and measures to halt mounting prices of goods. In the meantime business men genuinely are worried by the outlook.