LESS TAXATION

Southland Times, Issue 20950, 6 December 1929, Page 5

LESS TAXATION

AMERICAN INCOMES

RECOMMENDATION BY MR HOOVER

THE NAVAL PROGRAMME

(United Press Assn.—By Telegraph—Copyright.)

Washington, December 4.

President Hoover laid before Congress today a recommendation for a one per cent, income tax reduction totalling 160,000,000 dollars and a request for 3,830,449,231 dollars for Governmental use next year. He submitted a bright picture of the state of the nation’s finances and stated that the reduction of taxation by the past President had undoubtedly increased the revenue and given a stimulus to business, which had been partly responsible for the upward jump in receipts.

A total of 380,392,526 dollars is asked for the navy, an increase of 163,999,000 over 1928. Alterations in battleships, increased navy pay, and other improvements caused the increase.

Dealing with the cruiser construction programme, the President said: “For the fifteen cruisers and one aircraft carrier authorized in February, 1929, provision is made to carry forward the work on the two cruisers already laid down, for three cruisers and aircraft carrier to be laid down late in the fiscal year of 1930, and for the remaining ten cruisers to be commenced late in the fiscal year.”

DISPOSAL OF SUBPLUS

TREASURER’S NEW POLICY.

(Rec. 7 p.m.) Washington, December 4. Mr A. W. Mellon, Secretary of the Treasury, in his annual report to Congress, announced a policy by which steps would be taken in future to give taxpayers the benefit of the surplus of revenues instead of applying such surplus to debt reduction. The Secretary presented an optimistic picture of the Governmental finances and business, despite the recent crash. He asked for particular attention to the Federal reserve system’s part in obviating’ a panic. He also took up the question of group and branch banking expressing the hope that banking would proceed moderately and that hasty legislation to liberalize or constrict the limitations now effective would be avoided.

THE NOTE ISSUE

NO EXPANSION CONTEMPLATED.

REPLY TO AUSTRALIAN REPORT.

Washington, December 4

Considerable surprise was caused here by the circulation of a report in Australia that the United States Federal Reserve contemplated an expansion of the note issue in the interests of unemployment. It Is stated that while the report shows cognisance of the sensational import of such a step, it lacks familiarity with the structure or the purposes of the Federal reserve system. The latter was instigated by President Wilson for the purpose of controlling inflation. An examination of the Federal Reserve Act shows that the main body of notes can only be issued against commercial obligations. This would make impossible any arbitrary expansion. Moreover the information that unemployment to any extent, necessitating such desperate financial remedies, existed in the United States, or was at all impending, was received with incredulity. The Australian report cannot bo understood here, and is considered to be fantastic.