UNITED STATES BUDGET

Rotorua Morning Post, Volume 1, Issue 93, 10 December 1931, Page 5

UNITED STATES BUDGET

(Press. Assn.-

iMMkNSk DEFiciT PRESIDENT PROPOSES. HIGHER TAXES AND GOVERNMENT • ECONOMIES LACK OF CONFIDENCE BLAMED

— By Telegraph — Copyright).

Rec. Dec. 9, 5.5 p.m. WASHINGTON, Tuesday. . President Hoover, in ihi£ annual Budget message to Congress, places the United States deficit for 1932 at 2,123,000,000 doJlars. He announced that the expenditure for the fiscal year ending June 1932 ■ w:as expected to increase over the original estimates by 437,000,000 dollars. The receipt^ would, probably; fa}l sbort of tbe estimates by 2,239,000,000 dollars, due- principally to a reduction .infincome tax payments, of .1-,. 140, 000 dollars, customs receipts 202,000,000 dollars, miscellaneous internal ;.revenue receipts, 132,000,000 dollars, and outstanding payments of principal and interest on foreign debts, 247,000,000 dollars. Pointing out that the deficit in 19~31 was 902,000,000 dollars and the estimated fiefici.t in 1932 would be 1,147,000,000 dollars, Mr.Hoov.er.asserted: „"We cannot maintain public confidence nor the stability -of tbe Federal Government with out increasing taxes. He said that Congress would soon be requested to provide increases on the general plan of taxation as it existed under the Revenue Act of 1924 over a period to end two years from next July,. . . . _ 4 ■ Mr. Hoover emphasised that unless taxes go up and expenditure down

the Government will have run behind somp 4,400,000,000 dollars (approximately £1>100,000,000 .at the present exchange rate) by the end of the next ; fiscal year. He did not specify any method of tax revision, but suggested that it should be made effective for only two years. The President recommended that the immigration resfrictions be more definitely backed by the law, and noted that the negotiations now. in progress with Canada for the construction of the St. Lawrence waterway called for a further decrease in naval and other arms, saying this will be more possible if the pending negotiations between Franpe and Italy are successful. ... In respect to the domestic economic situation, Mr. Hoover said that largely the crisis arose. from .an nnjustified lack of confidence. They did not. require more. money or working capital; they needed to put what they had to work. As the first requirement towards restoring confidence, the President listed the .financial stability of the United States Government. He stated that the United States system was based on the ideals of initiative and equality of opportunity. It was not an artificial thing; it was the outgrowth of experience. He expressed faith in the spirit of the American people.