A SENSATION.

Waikato Times, Volume 122, Issue 20475, 16 April 1938, Page 7

A SENSATION.

PRESIDENT INTERVENES AMERICAN TAXATION BILL A REVOLT IN CONGRESS United Press Assn.—Elec. Tel. Copyright WASHINGTON, April 14 Breaking White House precedent President Roosevelt caused a sensation in Washington by intervening In the conference between the Senate and the House of Representatives on the 5,300,000,000 dollars Tax Bill and demanding the retention both u? the undistributed profits tax and the present method of taxing capital gains as Income. This action has stirred up a revolt in Congress and brought legislators to the brink of a violent struggle rivalling the fight over the Reorganisation Bill. Simultaneously Mr Roosevelt is preparing plans to break the business recession, involving an outlay of 4,000,000,000 dollars for recovery and relief. He contemplates the use of the gold sterilisation fund. DRAMATIC APPEAL DEFEAT OF DEPRESSION COUNTRY’S ECONOMIC CRISIS VAST RECOVERY PROGRAMME United Press Assn.—Elec. Tel. Copvrlgnt WASHINGTON, April 14 In a dramatic radio appeal to the nation President Roosevelt placed the country’s economic crisis before the people and outlined a vast recovery programme. lie gave a pledge to muster all the Government’s resource's in an attempt to defeat depression. Mr Roosevelt apologised for speaking in Holy Week, but said the emergency confronting the nation demanded immediate action. He emphasised Ihe imperative need for all to act. together, and said: "This is the only way to save the present system of Government." j Democracy had disappeared in j several other great nations, he added, uut because the people disliked democracy, but because they had grown tired of unemployment and insecurity and of seeing their children hungry while they sat helpless in the face of Government, confusion, weakness and lack of leadership. Finally, in desperation, they chose to sacrifice their liberty in the hope of getting something to eat. Noef of Co-operation "We, in America,” said Mr Roosevelt, "know that our democratic institutions can be preserved and made to work, but in order to preserve them we must act .together and prove in practical operation that a democratic Government is equal to the task. Your Government must prove that it is stronger than the forces of ! business depression. 1 "We are a rich nation and can [afford lo pay for security and pros- | perily without having to sacrifice our j liberties into tlie bargain. It is going • to cost something lo get out of this jiecession this way, but the profit in getting out will pay the cost several times.” As though answering charges of dictatorship on his part and personal criticisms, President Roosevelt concluded. "1 shall never forget that 1 live in a house owned by the Ameri- ! can people and that I have been given * their trust —my friends and enemies I constantly seek to look beyond the doors of White House, beyond official- i dom, in the hopes and -fears of men • and women and into their homes. “I Believe I am Right” "I want to be sure that neither the battles nor burdens of office blind me to an intimate knowledge of the way in which the American people , want to live, and to the simple pur- j poses for which they put me here. I ' believe I am right in the course of my \ charter. To abandon the purpose of i building a greater, more stable and more tolerant America would be to : miss the tide, and perhaps to miss j the port." CREDIT EXPANSION MR ROOSEVELT'S PROPOSALS I REVIVAL IOF PUBLIC WORKS United Press Assn. Elec. Tel. Copyrlybt WASHINGTON, April 15 President Roosevelt proposed to congress a 4,512,000,000 dollars lending and spending credit expansion programme in the New Deal's second huge pump-priming campaign against depression. The plan falls into three general categories: First, the maintenance of relief; second, expansion of credit; third, revival of public works and additional funds for certain active New ! Deal recovery agencies. At Mr Roosevelt’s request Mr H. ' Morgenthau, Secretary to the Treasury, ordered the desterilisation of 1,392,000,000 dollars of gold and by 1 telegraph distributed the sum among the 12 Federal Reserve Banks for pri- ! vate loans. It is pointed out that the action ini volves the use of only the present ! amount of inactive gold, thus the I sterilisation of all gold imported each quarter in excess of 100,000,000 dolI lars will continue. I The Federal Reserve Board has j agreed to liberalise its requirements, and is freeing 750,000,000 dollars from reserves.