HOOVER POLICY

Hawke's Bay Tribune, Volume XXI, Issue 305, 9 December 1931, Page 7

HOOVER POLICY

MEETING HEAVY DEFICIT FINANCIAL PLANS OUTLINED. STRENGTHENING CREDIT STRUCTURE. (Received 9, 8.35 a.m.) Washington, Dec. 8. President Hoover, in his annual address at the opening of Congress, outlined the efforts made to meet unemployment and other emergencies due to the depression, and added: “We must put some steel beams in the foundations of our credit structure.” He drew attention to the huge deficit in Government finance. He recommended the establishment of a group of discount banks throughout the country to make loans on homes and thus encourage homo building, and the creation of a reconstruction finance corporation with authority to issue its own debentures and aid a variety of businesses that were in difficulties due to the depression. Mr Hoover expressed opposition to a direct or indirect Government dole for the unemployed and blamed unemploy ment in Europe to this cause. He opposed any general congressional revision of the tariff. President Hoover said that unless taxes go up and expenditure down, the Government will have run behind by some 4,400,000,000 dollars by the end of next fiscal year. He did not specify the method of tax revision, but suggested that it be jade effective for only two years. He recommended that immigration restrictions should be more definitely backed by law and noted that the negotiations now in progress with Canada for the constructio: of the 9t. Lawrence waterway called for a further decrease in naval and other arms, and saying that this would be more possible if the pending negotiations were successful between France and Italy. • ' DOMESTIC SITUATION. In respect to the domestic economic situation, President Hoover said that largely, the crisis arose from an unjustified lack of confidence. They did not re quire more money or working capital. They needed to put vfliat they had to work. ' The first requirement towards restoring confidence the President listed as the financial stability of the United States Government. There was an indicated deficit for tho fiscal year of 2,123,000,000 dollars. lie proposed economy in Government expenses, and temporary increases in taxes and borrowing. Ho stated that the United States system was based on ideals of initiative and equality of opportunity. It was not an artificial thing, but the outgrowth of experience in America. He expressed faith in the spirit of the American people. President Hoover said that the United States would sustain the spirit of its peace treaties and of those , assuring the territorial integrity of China.