HOOVER’S SWAN SONG

Grey River Argus, 8 December 1932, Page 5

HOOVER’S SWAN SONG

MORE WAGE CUTTING With Deflation (Aus. & N.Z Cable Assn.) WASHINGTON, December 6. President Hoover today sent his liiial message to Congress. A blanket ing manufacturers’ sales tax, covering .irtually everything but food, and an additional eleven per rent, pay cut for Federal cnqiloye?s, were recommended to Congress by tho message, which also reaffirmed Mr Hoover’s previous stand on war debts, but did not touch upon prohibition. Air Hoover asserted that thre-* separate efforts were necessary foundations to any other action: — (1) Balancing the budget.

(2) Complete reorganisation of the banking system. (.”•)’ Wholehearted co-operation with other nations in the economic held. As for th? present state of the United States, he said the acute phases of t!: c crisis had obviously passed, and freedt m from industrial conflict was greater than was hitherto known. In addition to the manufacturers’ sales tax at a uniform, but unspecified. rate, some of his .far Hung proposals for balancing the budget, which he termed necessary to fully restored confidence in the future -were as fol(1) Widespread reorganisation of the Federal Government, with executive orders to be submitted within a few days for re-grouping and consol idating more than fifty Fed ral Departments and agencies. (2) A flat eleven per cent, slash in Federal salaries, with a thousand dollar exemption, in addition to the present eight and one-third reduction un-fit-r the 'furlough system. (3) Reduction in appropriation under those for the present fiscal year of S3O million dollars. This to bo offset in part by increases in uncontrollable items of a quarter million. (4) Drastic whittling down of expenditures for public works from 717.262,000 to 142,760,000 dollars. (5) Elimination of certain unnamed payments to veterans, arising from illconsidered legislation. The President, after asserting that measures already adopted had undoubtedly saved th<» country ’from economic disaster, devoted a full sec lion of his message to criticism on Hie banking system, declaring that widespread banking reforms were a national necessity. and the first re-

quisites for further recovery. He warned that inflation of currency or Governmental conduct of banking should not have part in any reforms.

II • said that if the United States was to secure recovery and protection for the future they must co-operate with foreign nations in many measures. He. limited the direct discussion on war debts to the following paragraph: The European Govern meats obligated 1 o us in war debts, have requested a suspension of payments due to the United States on December 15, accompanied by an exchange of views upon the debt question. Our Government has informed them we do not approve of the suspension of the December 15 payments. I have stated I would i-econicmnd to Congress a meth od to overcome the temporary exehang difficulties in connection with this payment from nations where it may be necessary.

The President linked the goals of world peace, and world disarmament an<[ world recovery, and spoke of cur rency depreciation and decrease in price levels in connection with the projected World Economic Conference. He added: “From these origins rise most of tho destructive trade barriers now stifling the commerce of tho world. We could by successful action increase security, and expand tradethrough the stability i n international exchange and monetary values. By such action world confidence could be restored. It; would bring courage and stability which will be reflected in every home, in our land.”