TAX BILL STRUGGLE

Rotorua Morning Post, Volume 2, Issue 242, 2 June 1932, Page 5

TAX BILL STRUGGLE

Press Assn.-

'RESIDENT FORCES DRAMATIC CLIMAX BY APPEARING f • ' IN SENATE WARNING AGAINST DELAY

— By TeJ-v^ranli — Copyright.)

Rec June 1, 8.15 p.m. WASHINGTON, Tuesday. The protracted struggle in Congress 0 balance the Budget reached a dramtic climax to-day, when the Presidnt, Mr. Herbert Hoover, almost nthout notifieation, appeared in the lenate and read a message urging the nmediate balancing of the Budget nd the adoption of the Manufactures lale Tax, excluding food, clothing and ther necessities. The President spoke on the weakess of the dollar on the foreign marets and the recent steady depletion x gold stocks. There were three major tasks which longress must accomplish, he said, amely reductions in expenditure, the assage of adequate revenue legisition and unemployment relief. He ave reasons why he considered the 'ax Bill in its present form was indequate. Effect of Delay The continued downward movelent in the economic lif e of the coun-i-y had been accelerated during the ast few days, and this was. due in art to the holding up of the financial rogramme of the Government. There ould be no doubt that, super-imposed n the other causes, the long-con-inued delays in the passage of legisition for the reduction in expenses, nd the provision of such additional wenues as to balance the Budget, >gether with the proposal of pro:cts which would greatly increase [overnmental expediture, had given se to doubt and anxiety, as to the bility of the Government to meet s responsibilities. These fears, no doubt, had been xaggerated in other countries, which new from bitter experience i^iat n unbalanced budget was the road > ruin. "We are determined to have the remrces of the United States on an nassailable basis," Mr. Hoover said. The immediate result of the delays as been the unjustified run on the merican dollar in foreign countries ithin the past few days. Despite the ational wealth and resources, and u' unparalleled gold resources, the allar stands at a serious defcline in ie markets of the world, for the rst timo in half a century. Must be Corrected 'This can and must be corrected, or ie reaction on the economic situ;ion will be such as to cause a great ss to our people and will further itard recovery. Nor has the conision in public mind, which has isen, following the doubt and fear, sen confined to foreign countries. refleets itself directly in diminish1 economic activity and increased lemployment within our own bords and among our own people." The President's message came at most, heetic moment. The Taxation Treasury Secretary, l'. Mills, had earlier appeared bere the Senate Finance Committee. e said that the pending Bill was me 285,000,000 dollars short of balicing the Budget and again urged e passage of the Saies Tax. Meanwhile, the Senate announced at it would not adjourn at the reilar hour to-day, indicating that ere is a possibility of attempting pass the measure to-night, although record vote on this matter is likely.