ENORMOUS SUM TO BE SPENT BY U.S. ON DEFENCE.

Star (Christchurch), Issue 18937, 6 December 1929, Page 1

ENORMOUS SUM TO BE SPENT BY U.S. ON DEFENCE.

72 PER CENT OF BUDGET ASSIGNED FOR PURPOSE. (United Press Assn.—By Electric Telegraph.—Copyright.) (Received December 6, 9.10 a.m.) WASHINGTON, December 5. . Applying the. principles of household accounting to the 3.830,000,000 dollars Budget of the Federal Government for 1931, President Hoover has calculated that approximately 72 per cent of the. total expenditure will go to national defence and the fiscal burdens of past ware. Only 8 per cent of the Budget estimates will be required, according to the: President, for normal departmental and governmental functions, including a 50,000,000 dollars postal deficit. Confidence Restored. After referring to the recent stock market disaster, President Hoover said: “We have fortunately, since our previous crashes* established a federal reserve system. The first step in recovering confidence was made by the powerful effectiveness of that system and the strong position of the banks, the result of wTiich has been steadily diminishing interest rates, with the smooth and rapid return into the channels of business of money previously absorbed in the speculative market. This is a reversal of our historic experience and a magnificent tribute to the system. Capital is becoming more abundant in all parts of the country. The bond market is growing stronger each day and already public issues held back for months have begun to appear.” Gospel of Work. Addressing a business conference called at his request by the United States Chamber of Commerce, President Hoover suggested work as the best prescription for the country’s economic ills, real and imagined. The President predicted greater construction for 1930 than the present year. He reviewed the start made through a series of White House Conferences and declared that these had removed the fear of unemployment from the American home. He said that the employers’ promises not to cut wages and the Labour leaders’ promises not to start wage conflicts, had not only assured the consuming power of the country, but had removed fear from millions of homes. He added: “I have no desire to preach. I may, however, mention one good old word—Work!”