UNITED STATES FINANCE.

Timaru Herald, Volume CXXV, Issue 18441, 6 December 1929, Page 9

UNITED STATES FINANCE.

Bright Picture Painted. REDUCTION OF TAXATION. (United Press Association —By Electrls Tel e*raph—Copyright.) WASHINGTON. December 4. President Hoover laid before Congress to-day 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 finance, and stated that a reduction of taxation by the past President had undoubtedly increased the revenue, and given a stimulus to business, and was partly responsible for the upward jump in receipts. A total of 380,392,526 dollars 18 asked for the Navy, an increase of 163,999,000 dollars over 1928. Alterations in battleships, increased navy pay and other improvements caused the increase.

( Dealing with the cruiser construc- ] tion programme, the President said: | “For fifteen cruisers and one aircraft j carrier authorised in February, 1929, I provision is made to carry forward the work on the two cruisers already laid down, for three cruisers and an aircraft carrier to be laid down late in the fiscal year, 1930, and for the remaining ten cruisers to be commenced late in the fiscal year.” SURPLUS OF REVENUES. POLICY IN THE FUTURE. (United Press Association—By Electrle Telegraph —Copyright.) (Received December 5, 7.10 p.m.) WASHINGTON, December 4. Mr Mellon, in his annual report to Congress, announced the policy to take steps in the future to give taxpayers the benefit of a surplus of revenues, instead of applying such surplus to debt reduction. The Secretary presented an optimistic picture of Governmental finances and business, despite the recent crash. He asked that particular attention be paid to the Federal Reserve systems, partly in obviating panic. He also took up the question of group and branch banking, expressing the hope that banking would proceed moderately, and that pasty legislation to liberalise or constrict limitations now effective would be avoided.