NEW SESSION

Southland Times, Issue 22214, 5 January 1934, Page 5

NEW SESSION

U.S. CONGRESS

PRESIDENT’S MESSAGE

PROCESS OF RECOVERY

“HARD BEGINNING OVER”

(United Press Assn.—Telegraph Copyright.)

Washington, January 3.

President Roosevelt addressed a joint session of the United States Congress on Wednesday, refraining from detailed specific recommendation of. legislation, but dealing in general with the recovery programme and the progress made during the last six months. His message to the seventy-third Congress marked the first time since the Coolidge Administration that the President had adopted the policy first revived by Mr Woodrow Wilson of personally addressing Congress. T 1 j President asked for co-operation “to continue the restoration of national well-being and what was equally important to build on the ruins of the past a new structure designed better to meet the present problems of modern civilization. We have ploughed the furrow and planted good seed. The hard beginning is over.” Mr Roosevelt has apparently planned to deal later with the exact legislation he proposes to recommend in line with practice, and this will be inaugurated at the special session in March. Monetary Programme. Mr Roosevelt referred to the gold and monetary programme as having a twofold purpose —“the strengthening of the whole financial structure and arriving, eventually, at a medium of exchange which will have, over the years, a less variable purchasing and debtpaying power for the people. Careful investigation and constant study prove that in the matter of foreign exchange rates certain sister nations find themselves so handicapped by internal and other conditions that they feel unable, at this time, to enter into stabilization discussions based on permanent and world-wide objectives.” “We are definitely in the process of recovery,” Mr Roosevelt declared. The communication was not over long, but it touched either directly or indirectly on problems facing the nation, both domestic and foreign, and was enunciated in unmistakable terms. He considered the new deal was working and had no intention of turning, back from the charted course in planning a basis for a new social structure. In the foreign field Mr Roosevelt also discussed war debts, disarmament and trade barriers. Regarding debts he merely mentioned the status as being that of December 15, and added he would communicate with Congress later on them. Disarmament and Tariffs. Regarding disarmament and tariffs he said “I have made it clear that the United States cannot take part in political arrangements in Europe, but that we stand ready to co-operate at any time in practical measures on a world basis looking to an immediate reduction of armaments and the lowering of barriers against commerce.” Mr Roosevelt reiterated the non-in-tervention policy he had enunciated in his Wilson Day speech, and added: “In other parts of the world, however, there is a fear of immediate or future aggression, and this spending of vast sums on armaments and the continued building up of defensive trade barriers will prevent any great progress towards peace or trade agreements.”

EFFECT ON MARKETS

WAVE OF SELLING STARTED.

(United Press Assn.—Telegraph Copyright.) New York, January 3.

On the first reading of the President’s message traders interpreted his reference to the exploration of stabilization possibilities as “bearish.” The news started an immediate wave of selling, which forced prices down from one to three points. Commodities sunk lower in sympathy, while conversely the dollar strengthened against foreign currencies. The Government’s gold prices were unchanged. The dollar closed at 63.07, sterling at 5.12 and the franc at 621;}. STRONGER HOLD PRESIDENT AND CONGRESS. (United Press Assn.—Telegraph Copyright.) (Rec. 7.0 p.m.) Washington, January 3. The comments of Republicans and Democrats did not, vary greatly, the reaction of both being that the President’s message was most effective, in solidifying his strength and increasing his hold on Congress when he makes specific recommendations later on currency, tariff and other problems.