CURE FOR ILLS

Wanganui Chronicle, Volume 75, Issue 290, 8 December 1932, Page 7

CURE FOR ILLS

ECONOMIC PROBLEMS HOOVER’S FINAL MESSAGE CO-OPERATION WITH NATIONS A FURTHER WAGE “CUT” (By Teitgraph—Press Association —Copyright.) WASHINGTON, Dec. 6. A blanketing manufacturers’ sales tax. covering virtually everything but food, and an additional 11 per cent, pay cut lor Federal employees were recommended to Congress to-day by President Hoover. In his liual message which reaffirmed his previous stand on war debts and did not touch upon prohibition, President Hoover asserted three separate efforts to be necessary foundations to any other action —balance the Budget, a complete reorganisation of the bank system, and wholehearted co-operation with other nations in the economic field. As for the present state of the United States, he said that the acute phases of the crisis have obviously passed and freedom from industrial conflict is greater than hitherto known. In addition to the manufacturers’ sales tax at a uniform but unspecified rate, here are some of his proposals for balancing the Budget, which he termed necessary to fully restore confidence in th- future: — A- widespread reorganisation of the Federal Government, with executive orders to be submitted within a few days for regrouping and consolidating more than 50 Federal departments and agencies. A flat 11 per cent, slash in Federal salaries with a 1000 dollar exemption in addition to the present 8 1-3 per cent, reduction under the furlough system. A reduction in appropriations under those for the present fiscal year of 830,000,000 dollars, this to be offset in part by increases in uncontrollable items of 250,000 dollars. A drastic whittling down in expenditures for public works from 712,202,000 dollars, to 442,796,000 dollars. The elimination of certain unnamed payments to. veterans arising from ill-considered legislation. The 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 the banking system, declaring that- -widespread banking reforms are a natibnal necessity and are the first requisites for further recovery. He warned Congress that inflation of the currency or Governmental conduct of banking should not have a part in any reforms. War Debts Turning to international relations, the President said that if the States is to secure recovery anVprotection for the future we must cooperate with foreign nations in many measures. He limited direct discussion on war debts to the following: “The European Governm ,s’ obligated to us in war debts hav< .equested a suspension of the payments due to the United States on December 15, to be accompanied by an exchange of views upon the debt question. Our Government has informed them that we do not approve of suspension of the December 15 payments. I have stated that 1 would recommend to Congress methods to overcome the temporary exchange difficulties in connection with this payment from the nations where it may be necessarv.

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 rise most of the destructive trade barriers now stfling 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 home in our **ud. ’'

REDUCED EXPENDITURE

DETAILS of the budget. Received Dec. 7, 11.5 p.m. WASHINGTON, Dec. 7. ihe President submitted the Bu get tor 1933-34 to Congress. Expend lure totals 4,218,000.0 Ge dollars, r presenting a reduction of 58U,UU0,ui dollars compared with :.e previo year, the largest item of estimated e penditure is v31,U77,0V0 dollars for e service men. The Navy Departme appropriation is 3U8,090,000 dolla and the War Department 276 000 O' The President tecomiueuds a map lacturers- excise tax of 21 per eel to produce additional tunds to me the present revenue deficiencies. the naval appropriation includ some 4,4UU,0U0 dollars for the moder ■«tion of two battleships and 38,841 MU dollars lor the construction of ne vessels, including two eight-inch gi cruisers and four destroyers ” The Budget message contains estimates of revenue, thus carrying i intimation of even a provisional <■ peetation ofjvar debtsjayment