DRASTIC PROPOSALS

Poverty Bay Herald, Volume LIX, Issue 17956, 7 December 1932, Page 7

DRASTIC PROPOSALS

BALANCING U.S. BUDGET

HOOVER’S RECOMMENDATIONS THREE MAJOR PROBLEMS (ICler. Tel. Copyright—United Press Assn.) (Received Dee. 7, 11 a.m.) AVASHTNGTON, Dec. 0. A blanketing manufacturers’ sales tax, covering virtually everything but food, and an additional .11 per cent, pay cut for federal employees, was recommended to Congress to-day by Air Hoover.

In his final message, which reaffirmed his previous stand on war debts, and did not touch upon prohibition, Mr Hoover asserted that three separate efforts wore necessary foundations to any other action, balancing the Budget, a complete reorganisation of the banking system, and whole hearted co-operation with other nations in the economic field. As for the present state of the United States, he said acute phases of the crisis have obviously passed, and freedom from industrial conflict is greater than has hitherto been known. In addition to the manufacturers’ sales tax at a uniform but unspecified rate some of his far-flung proposals Unbalancing the Budget,'which he termed necessary to fully restore confidence in the future, are the following:— A widespread reorganisation of the federal Government, with executive orders fo be submitted within a flew days for regrouping and consolidating more than 50 Federal departments and agencies.

A flat 11 per cent, reduction in federal salaries, with a £2OO exemption, in addition to the present 8 1-3 percent. reduction under tho furlough system.

A reduction in appropriations under those for the present fiscal year of £160,000,000, this to be offset, in part, by increases in uncontrollable items of £50,000.

A drastic whittling down of expenditures for public works from £143,452, 400 to £88,554,000.

The elimination of certain unnamed payments to veterans arising from illconsidered legislation.

BANKING CRITICISED

Tho President, after asserting that the measures already adopted had undoubtedly saved the country from economic disaster, devoted a full section of his message to criticism of tho banking system, declaring that widespread banking reforms are a national necessity and are the first requisites for further recovery. Ho warned Congress that the inflation of currency, or governmental conduct of banking should not have part in any reforms. Turning to international relations, tho President said that if the United States was to secure recovery and protection for the future we must cooperate with foreign nations in many measures.

He limited the direct discussion of war debts to the following 'paragraph: “The European Governments obligated to us in war debts have requested a suspension of payments due to the United States on December Id, accompanied by an exchange of views upon the debt question. Our Govern ment has informed them that wo do not approve of tin: suspension of. the December Id payments. 1 have stated I would recommend to Congress methods to overcome the temporary exchange difficulties in' connection with this payment from nations where it may be necessary. ” The President linked the goals of world peace, world disarmament, and world recovery, and spoke of currency depreciation and the decrease in price levels in connection with the projected World Economic Conference. “From these origins,” he said, “rise most, of the destructive trade barriers now stifling the commerce of the world. We could, by successful action, increase security and expand trade through stability in international exchange and monetary values. By such action world confidence could be restored. It would bring courage and stability, which will be reflected in every homo in our land.”