MR HOOVER

Hokitika Guardian, 8 December 1932, Page 3

MR HOOVER

BALANCES BUDGET,

A. SALES TAX

(United Press Association —By rjectrio

Telegraph—Copyright;

WASHINGTON, December 6

A blanketing manufacturers’ sales tax, covering vir.uail'iy everything but, food, and an. additional eleven per ; cent, pay cut for, Federal employees, wei;e. recommended .to Congress, today, by Air Hoover. , , In his final message, which reaffirmed- his previous stand on war debts, and did not touch, upon prohibition,., Mr Hoover asserted that three separate efforts were necessary foundations to any o:her action; (1) Balancing the budget; (2; Complete reorganisation of the, banking system, and (3) Wholehearted co-operation with other nations in the economic li,ski.

As for the present state of the United States, he said that the ■ cute 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 Kite, here are some of his farflung proposals for balancing the* budget,’ which he termed necessary to fully restored confidence in future. Q) Widoßoread reorganisation of the Federal Government, with executive orderrs to he submitted within a few d' -ys of re-grouping and consolidating more than fifty Federal Departments, and agencies; (2) A flat eleven ppr cent, slash in Federal salaries, mith c. thomir.d dollar exemption, in addition to the present eight -and onethird reduction under the furlough system; (3) Reduction in appropriation under these for the present fiscal year of 830 million dollars. This to he offset in pant by increases in uncontrollable items of a quarteimillion; M) Drastic whittling down of expenditures for public works from 717,262,000 to 442,769,000 dollars; (5) Elimination of certain unnamed payments to veterans, arising from- illco'',sklered legislation. The President, after asserting t’e measures already adopted, had undoubtedly saved the country from economic disaster, deveted a full section of his message to criticism on tlm banking ' system t declaring that widespread banking reforms .are a national necessity, and are the first requisites for further, recovery. He warned that the .inflation of currency or Governmental conduct of banking, should not have rbrt in any reforms. Turning to international relations, the President iso id that if the United States is to secure recovery and protection for the future we must cooperate with foreign nations in many measures.

, He limited, the direct, discussion on whr debts to the following paragraph: The European Governments obii g ted io. us in war debts, have requested a 'susperision of payments due to the United States on December 15,. accompanied by an exchange of views upon the debt question. Our Government has informed them we do not approve of the. suspension of the December 15 payments. I have, stated I would recommend to Congress a mn'hcd to overcome the . temporary exchange difficulties in connection with this payment from nations where it mav be necessary. .. The President linked the goals rf world peace., and world disarmament and world recovery, and spoke of currency depreciation and decrease . in price levels in eonnection with the projected World Economic Conference. “From these origins rise most of destructive .trade barriers now stifling the commerce of the world!. We could by. successful action increase security, and expand trbde through the stability in international exchange and monetary values. By such action world confidence could be restored. It would bring courage .and stability which will he reflected in every hon e in our land;” he said.

SALE OF BEER AND WINES. WASHINGTON, December 6. .Legjfd'tion to legalise and tax the sale of 2.7.') beer and wines was drafted to-day bv the Chairman (NTr James Collier).of the House Ways end Means Committee as a basis for the hearings, beginning to-morrow.

Mr Collier explained that the alcoholic percentage set was oho on simply as a basis on which to work. It will he for the committee to determine the. content desirable. . The same is true of the tax rate. He added, that his Bill, would levy five dollars per barrel: on beer, and twenty cents per gallon on natural grape wines without the addition of distilled spirits.

Only a majority is required in the House, and the Senate, to enact such a measure, as compared with the twothirds vot™ needed for the approval ,-.f , n constitutional amendment, sue! as that re ; ec“-«d on Mombv.