OPPOSED BY PRESIDENT

Hawera Star, Volume LI, 24 May 1932, Page 5

OPPOSED BY PRESIDENT

BOND ISSUE FOR RELIEF ASSISTANCE IN AMERICA PUBLIC! WORKS TOO COSTLY ALTERNATIVE CREDIT SCHEME (United p re3a Association —By Electric Telegraph Copyright.) WASHINGTON, May 22. In a. lengthy letter addressed to Mr Charles Parker, president of the American Society of Civic Engineers, and answering, a letter urging a bond issue to finance publio works construction, President Hoover has vigorously reiterated his opposition to such measures to relieve the depression. Political circles regard the letter as a direct answer to the recent Congressional agitation, for example, the proposal made on Thursday by the Speaker of the House of Representatives (Mr John N. Garner) for a bond issue of £200,000,000 for public works, a. £200,000,000 increase in bond issuing authorisation for loans to States, counties and cities, and a £20,000,000 appropriation for President Hoover to distribute as direct relict' where neeessary. . ~ The President in his letter urges the adoption of a relief credit programme to solve unemployment. The twelve points in this programme include the early balancing of the Budget and tlie expansion of credit through existing machinery. “The back of the depression- cannot be broken by any single Government undertaking; it can be done only with the co-operation of the banks, industry and agriculture in conjunction with the. Government,” Mr Hoover declares. Mr Hoover stresses the difference between “non-productive works” (such as public construction and buildings) and “income-producing works” financed by the 'Reconstruction Finance Corporation. The President is of opinion that the expenditure of great sums on public works will place too heavy a burden on the taxpayers in proportion to the number of men employed, which he estimates as relatively few.