AMERICAN POLITICS

New Zealand Herald, Volume LXXII, Issue 22000, 5 January 1935, Page 9

AMERICAN POLITICS

ASSEMBLY OF CONGRESS

NEW SPEAKER ELECTED i THE PRESIDENT'S MESSAGE EVE OF PRESENTATION By Telegraph—Press Association—Copyright {■Received January 4, 5.5 p.m.) WASHINGTON. Jan. 3 The "74th Congress of the United States, which is predominantly Democrat as the result of the November elections, assembled to-day. After a brief session both Houses adjourned until to-morrow, when President Roosevelt will present his annual message. With more than a two-thirds majority in thg House ,of Representatives the Democrats over-rode the Republican Opposition and elected Mr. Joseph Byrns Speaker to succeed Mr. Henry T. Rainey. Under the direction of the new Speaker the House immediately tightened the Parliamentary rules to allow the Government leaders to maintain a firm hand on legislation. The law which permitted legislation to be forced out of committee by the presentation of a petition bearing 145 signatures was repealed and it was made necessary for at least half the names in the House to be appended to such petitions. As usual a flood of legislation was presented, but little of it, without the President's support, is likely to become law. In all 2400 bills were submitted, a number being highly controversial. One bill seeks to order the Treasury to pay war veterans 2,000,000,000 dollars in compensation certificates, payments on which are not due until 1945. The President's message is expected to deal at length with his social security programme, the report on the relief administration's affairs and other important features of the "new deal." Treasury figures published to-day showed a half-yearly deficit at December 31 at the unprecedented total of 1,699,000,000 dollars, indicating a deficit at the end of the financial year of 3,500,000,000 dollars. The public debt has risen about 4,500,000,000 dollars, compared with December, 1933, and now stands at 28,500,000,000 dollars. ADVICE TO PRESIDENT BRITISH ECONOMIST WAY TO PROSPERITY LONDON. Dec. 29 "America's future depends on whether Mr. Keynes guessed right," says the New York correspondent of the News Chrofticle. He predicts that President Roosevelt, in his annual message to Congress, will urge the 120,000,000 Americans to spend their way to prosperity on the lines suggested by Mr. J. M. Keynes, noted English economist, when he visited White House. Mr. Keynes is secretary of the Royal Economic Society and a member of the British Economic Council. His theory that the nation "can lift itself by its bootstraps " will really be tested by President Roosevelt demanding the expenditure of £1,000,000,000 on public works, accompanied by a reduction of doles. It is considered that roads, buildings, dams, afforestation and similar projects are better calculated to "prime the pump of recovery." Nevertheless, conservative business interests are opposing the scheme. In spite of 10 years' violent criticism of the British dole, they are clamouring now for direct relief, instead of public works, on the ground that the Government will play havoc with the labour market by giving better wages and conditions than private industry. The ordinary Budget expenditure is expected to be £600,000,000 in addition to £200,000,000 for the homo owners' loans. Such lavishncss is frightening many people, but the majority are expected to support Mr. Roosevelt until either there is an inflation debauch or heavy taxation.