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Rotorua Morning Post, Volume 2, Issue 400, 8 December 1932, Page 5

NO POSTPONEMENT

HOOVER'S FOL1CY WAR DEBTS DEALT WITH INI STATEMENT TO CONGRESS BALANCING THE BUDGET Received December 7. "Washington, Dec. 6. The blanketing of the manufacturers' saies tax, covering virtually everytliing but food, and an additional 11 per cent. pay cnt for Feder)il employees wjsre recom,mended to Congress to-day by the President, Mr. H. Hoover. In his final message, which reaffirm- '

ed his previous stand on the war dehts | and did not touch up-on prohibition, jj Alr. Hoover asserted three separate i| efforts to he necessary foundations j to any other action, namely: — j . 1. Balaneing* the ibudget. 2. Complete reorganisation of the banking system; 3. Wholehearted eo-operation with other nations in the economie field.

Far-Flung Proposals In addition to fixing manufacturers' saies tax at a uniform hut unspecified rate here are some of his farflung proposals for balancing the budget, which, he termed necessary to fully restorcd confidence in future: Widespread re-organisation of the Federal Government with executive orders, to be submittsd within a few days, for the re-grouping and consolidating of more than 50 Federal departments and agencies; A flat 11 per cent, slash in Federal salaries with 1000 dollar exemption, in addition to the present 8 1-3 reductions under the furlough, system; A reduction in appropriations under those for the present fiscal year of 830,000,000 dollar s. This to be offset in pai't by increases in uncontrollable items of 250,000; Drastic whittling down of expenditure for public works from 717,262,000 dollars to 442,769,000 dollars. The elimination of certain unnamed payments to veterans arising from illconsidered legislation. The Banking System 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 a eriticism of the banking system, declaring that widespread banking reforms are a national necessity, anu are the first requisites for further rec'overy. Mr. Hoover warned Congress that an infiation of currency or Covernmental conduct of banking should not have a part in any reforms. Turning to international relations, the President said that if the Unitecl States is to secure recovery and pro-

tection for the future she must eo- | operate with foreign nations in many i measures. The President limited direct discussion of the war debts to the following paragraph: — € European Governments obligated to us in war debts have requested a suspension of the payments due to the United States on 1 December 15, accompanied by an i excliange of views upon the diebt ! question. Our Government has inI formed them that we do not approve of ,a suspension on December 15 payments. I have stated I would re..commend to Congress methods to overcome the temporary exchange difficulties in eonnection with this payment from nations where it may he necessary.