MR. HOOVER’S ADDRESS

Greymouth Evening Star, 5 December 1929, Page 12

MR. HOOVER’S ADDRESS

EFFECT ON WALL STREET. (By Cable—Press Assn—Copyright.) - NEW YORK, December 3. Wall Street appeared to be well pleased with President Hoover’s message to Congress, paying particular attention to sections in the message concerning the revision of the banking laws, the consolidation of the railroads, and the supervision of public utilities. - Stocks were firm all the morning. They started forward briskly as the message was read, and continued an upswing until the close, when prices were up as far as 153-154 Money continued easy, and kerb sales also were generally higher. Sterling rose to the last New Year s level of 4.88 dollars 3.32 cents.

NAVAL CONSTRUCTION. (Received December 5, <ll a.ni.) WASHINGTON, December 4. Mr. Hoover laid before Congress, today, a recommendation , for a 1 per cent, income tax reduction, totalling 160,000,000 dollars, and a request for 3,830,449,231 dollars for Government use next year. . ■ e . He submitted a bright picture of the state of the nation’s finances, and stated the reduction of taxation by the past President had undoubtedly increased revenue, and given a stimulus to business, and was partly responsible for the upward jump in receipts. A total of 380,392,526 dollars is asked for the Navy, an increase of 163,999,aaa nvar 'IQ’QQ Alterations in battle*

ships, increased Navy pay and other improvements caused the increase. Dealing with the cruiser construction prograinme, the President said: “For fifteen cruisers and one- aircraft carrier authorised in February, 1929, provision is made to carry forward the work on two cruisers already laid down; for three cruisers and aircraft carrier to be laid down late in the fiscal year 1930, and for the remaining ten cruisers to be commenced late in the fiscal year.” A REPORT DENIED. WASHINGTON, December 4. Considerable- surprise was, caused here by the circulation of a report in Australia .that the United States Federal Reserve contemplated the expansion of the note issue, in the interests of unemployment. It is pointed out that while the report shows cognisance of the sensational import of such a step, it lacks familiarity with the structure or purposes of the FederaPßeserve system. TTie latter was investigated by Mr. Wilson for the purpose of controlling

inflation. . Examination of the Federal Reserve Act shows that main body notes can only be issued against commercial obligations. This would make impossible .any arbitrary. Jexpansion. Moreover, the information that unemployment to any ,extent i necessitating such desperate fihancial remedies existed in the United States, or was at all impending, was received with incredulity. The Australian report cannot be understood here, and is considered fantastic.