DOLLAR UP AGAIN

Grey River Argus, 31 March 1932, Page 5

DOLLAR UP AGAIN

U.S.A. BUDGET BALANCE Assured by House’s New Attitude (Aus. A: N.Z. Cable Assn). WASHINGTON, March 29. The House and its leaders, Democrat, Republican and Independcur, alike, pledged themselves to-day, to the passage of a non-partisan tax bili. to balance the Budget. Responding to the call by Speaker Garner, for those members to stand who would support such a policy, virtually the entire membership arose, with a vigorous outburst of applause. The new rates brought in by the Ways and Means Committee, call l<»r an increase in postage and numerous special taxes, levies on sales, stocks, bonds and real estate, to replace the six/ hundred million dollars cut out ot the revenue bill by tho defeat of the sales ta> (Received March 30 at 7,10 p.m.) WASHINGTON. March 29. Apparently feeling the pressure of Ihe foreign reaction to the delay in balancing the U.S. Budget, the House of Representatives to-day accepted a warning voiced by Representative Garner, the fpeaker, in an impassionate address. He declared that the Budget must be balanced. The so-called “Insurgents” immediately disbanded. The House hurriedly passed a series of amendments to the Tax Bill consisting of “selected” manufactures and excise taxes calculated to raise 158 million dollars as a start towards the replacement of the loss of 550 million dollars’ revenue caused through the defeat of the Sales Tax Bill Tho indications are that a Bill balancing the Budget might be passed within a week. Representative Garner, forsaking the Speaker’s stand for the first time, was enthusiastically applauded throughout. He declared: “L believe that the House must adopt an increase in the taxes that will maintain the credit of the United States in the eyes of the world. ■ 1

It is generally believed that the attack on the dollar, and also the widespread feeling abroad that this country might forsake the gold standard, and other obvious indications of fear as to th*' country’s financial situation, prompted Representative Garner’s speech. Tt was largdy responsible for the favourable action of the House. T’he new excise duties passed place a ten per cent, tax on fins, jewellery, and other luxuries; a three per cent, tax on automobiles; and a two per cent, tax on trucks.

Although the excise taxes ore not altogether favourable to the industrial and financial interests, their passage by the House has resulted in a rally on the Now York markets. an ( | particularly a rally of American foreign exchange, where the dollar has regained practically all of the ground wh'ch it lost during the recent foreign selling.

The New York Stock Exchange is also fractionally higher with trading dull.

A COMPLICATION. WILL CONGRESS PASS BIG WAR VETERAN VOTE? WASHINGTON, March 29. Regarding the Budget problem there is a menace that Congress will pass legislation granting 2.500 million dollars which is necessary to complete tho payment of the world war veterans bonus certificate. It drew a sharp rebuke from President Hoover, he declaring that such action would “ irretrievably undermine the Government’s programme to build up and sustain the nation’s credit. It is understood that the payment roponent* have already pledged 167 of the House, while 177 are doubtful, although in the event of the passage, of the payments, a Presidential veto on them is considered to be assurred, but danger of the passage of the legislation over tho President’s veto is being increasingly felt. STORM IN TEACUP. WASHINGTON. March 29. The United States House of Representatives was thrown into turmoil tn-day, when Representative Laguardia (Republican. New York) attacked as a slur, the statement by Representative Martin (Democrat, Oregon) that" he (Laguardia) was a Socialist. Before order was restored, a dozen members were on their feet seeking recognition, while the, language used brought Representative Crisp (Democrat, Georgia) to say it violated the rules of the House. Representative Martin, who is a. retired General in the Army, had criticised members of his Party for bolting from the loaders and following “my Socialistic friend from New York..” Representative Laguardia shouted that this was a slur, As soon as he Could gain the floor, he said: “Every time there, is a slurring remark made against me, I’m going to stand up and nswer ii. F '