U.S.A. FINANCE

Greymouth Evening Star, 6 December 1929, Page 12

U.S.A. FINANCE

TREASURER’S STATEMENT. (By Cable—Press Assn.—Copyright.) WASHINGTON, December 4. Mr Mellon, in his annual report to Congress, announced his policy would be to take steps in future to give employers the benefit of any surplus of revenue, instead of applying such surplus to debt reduction. He presehted an optimistic picture of Governmental finances and business, despite the recent crash. He asked for particular attention to be given to the Federal Reserve system’s part in obviating a panic. He also took up the question of group and branch banking, expressing the hope that banking will proceed moderately and that hasty legislation to liberalise or construct limi tations now effective will be avoided. DEFENCE EXPENDITURE. WASHINGTON, December 5. Applying the principles of household accounting to the 3830 million dollars’ Budget of the Federal Government for 1931, Mr Hoover has calculated that approximately seventy-two per cent, of the total expenditure will go to national defence and fiscal burdens of past. wars. Only eight per cent, of the Budget estimates will be required, according to the President, for normal departmental Governmental functions, including fifty million dollars postal deficit. “WORK”—THE BEST REMEDY. WASHINGTON, December 5. After referring to the recent stock market disaster, Mr Hoover said: “We have fortunately since our previous crashes established a Federal Reserve

system. The first step in recovering confidence was made by the powerful effectiveness of that system, and the strong position of the bank?, the result of which has been steadily diminishing interest rates, with smooth rapid return into channels of business of money previously absorbed in speculative markets. This is are-

versal of our historic experience and a magnificent tribute to the system. Capital is becoming more abundant in all parts of the country. The bond market is growing stronger each day, and already public issues, held back, for m< nths, have begun to appear. Addressing the business conference called at his request by the United States Chamber of Commerce, Mr Hoover suggested work as the best prescription for the country’s economic ills, both real and imagined. The President predicted greater construction for 1930 than in the present year. He reviewed the start made through the series of White House conferences, and declared that these had removed unemployment from American homes. He said that the employers’ promises not to cut wages, and the Labour leaders not to start wages conflicts, not only assured the. consuming power of the country, but removed fear from millions of homes. He added, “I have no desire to preach. I may, however, mention one good old word, “Work.”

TAX REDUCTION. WASHINGTON, December 5. The House to-day by, a vote of 218 to 17 passed the Hawley resolution providing for 160 million dollars tax reduction. The measure goes to the Senate. It can be effected by cutting one per cent from the rate on individual and Corporation incomes. MILLIONAIRE DENIES BRIBERY. (Received 7 December 6, 10 a.m) WASHINGTON, December 5. The Senate witnessed a unique dramatic scene when William Vare, a multi-millionaire, appeared in person to demand the seat which was denied him by a Senatorial investigation

whose members found widespread bribery in connection with his election three years ago. It was the first time that a nonmember had been permitted to speak in this mann’er. Partly paralysed, Vare’s useless arm hung in his pocket while under tremendous emotion, gripping a desk to prevent his falling, he read a lengthy statement demanding justice and fairness. He accused other Senators of buying their way in. Vare’s physicians watched him closely, as he pleaded in a faltering voice. - -