AMERICAN BUDGET

Hokitika Guardian, 6 December 1929, Page 5

AMERICAN BUDGET

(United Press Association—By Electric Telegraph—Copyright).

(Received this day at 8.30. a.m.) WASHINGTON, Dec. 5.

Applying the principles of household accounting to the 3830 million dollars budget of the Federal Government for 1031, Mr Hoover lias calculated that approximately 72 per cent, of the total expenditure will go to national defence and fiscal burdens of past wars. Only eight per cent, of the Budget estimates will be required, according to the President for normal departmental and governmental functions, inelud.ng fifty million dollars postal deficit. After referring to the recent stock market disaster, Mr Hoover said : “We have fortunately since our previous crashes established a Federal reserve system. The first step in recovering confidence was made by the powerful effectiveness of that system and the strong position of the hanks, the rev< It of which has been steadily diminishing interest rates, with the smooth, rapid return into channels of business of money previously absorbed in the speculative market. This is a reversal of our historic experience, and a magnificent tribute to the system. Capital is becoming more abundant in all parts of the country, the bond market is growing stronger each day, and already public 'issues heM back! for months have begun to appear.” HOOVER’S ADVICE,-WORK.

Addressing a business conference called at his request by the United States Chamber of Commerce President Hoover suggested work as the best prescription for the country’s economic ills, both real and imagined. The President predicted a greater construction for 1930 .than the present year. He reviewed the start made through a series of White House Conferences, and declared these had removed the fear of unemployment from Amrican homes. He said the employers promises not to cut wages, and the labour leaders not to start wage conflicts, not only assured the consuming power of the country, but removed the fear from millions of homes.

He added: “I have no desire to preach. I may, however, mention one good old word—work.”