U.S. DEFICIT

Hawke's Bay Tribune, Volume XXI, Issue 306, 10 December 1931, Page 8

U.S. DEFICIT

TAX INCREASES MAINTAINING PUBLIC CONFIDENCE. HOOVER’S BUDGET MESSAGE. Washington, Dec. 9. President Ho r’s annual Budget message, placing the United States 1932 deficit at 2123 million dollars, announced that expenditures for the fiscal year ending June 30, 1932, were expected to increase over the original estimate by 437,000,000 dollars and receipts would probably fall short of the estimates by 2239 million dollars. The fall in receipts was due principally to reductions of income tax payments of 1140 million dollars, customs receipts 202,000,000 dollars, miscellaneous internal revenue receipts 132,000,000 dollars, and postponed payments of principal and interest on foreign debts 247,000,000 dollars. Pointing out that the 1931 deficit was 902,000,000 and that the estimated 1933 deficit would be 1417 millions, Mr Hoover asserted: “We cannot maintain public confidence nor the stability of the Federal Government without tax increases.” He said Congress would soon be requested to provide increases upon the general plan of taxation bs existed under the Bevenue Act, 1924, for a period to end two years from next July. WIDE GAP TO BRIDGE. President Hoover, addressing Congress, 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 _iade 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 construction of the St. 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. UNJUSTIFIED LACK OF CONDENCE. 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 S'ates Government. There was an indicated deficit for the fiscal year of 2,123,000,000 dollars. Ho proposed economy irflGovernment 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 peaco treaties and of those assuring the territorial integrity of China.