Evening Star Newspaper, December 6, 1932, Page 4

HOOVER MESSAGE COMMENT VARIED Statements on Sales Levy Recall Stubborn Debate in House Last Year. Presidegnt Hoover's message to Con- gress evoked a whirl of conflicting com- ment, Republicans in general giving it high peise and some Democrats assail- ing it with vigor. The sales tax recommendation espe- claliy was cited, the varied comments being reminiscent of the stubborn de- batz which preceded defeat of such a measure in the House last year. Representative Snell, the Republican seconded the tax proposal, and ed heartily on the sentiments for ting Federal spending. Need Is Demonstrated. “The outstanding recommendation,” 12 said, “is changes in the fundamental ing laws of the country. Experience last three years demonstrates it especially interested in the on raduced Government ex I Congress follows his ndations, the people will get re accord with his posi- n a limited manufac * sales We ought to have passed it last His statement on econcmic con- ditions should be studied by every business man in the country.” Begin Individual Study. Members of the Scnate Economy Committee, who for scveral days have bean listening to the petitions of Gov- empl-yes asking for repeal of €xisting economy act, began study- ing individually the new recommenda- tions in the President message. Senators Byrnes, Democrat, South Carolina, and McKellar, Democrat, ‘Tennessee, both indicated they were i sfied with the furlough plan, but favored some sort of percentage pay re- Guction. Senator Dickenson, Republican, Iowa, | also a member of the Economy Com- mittee, said he sees difficulties in the way of a further reduction in salaries, spect of restoring them were a year ago. With these two opposite lines of thought be- g "presented to Congress, the Iowa Senator said the result might be a con- tinuation of the existing Status for the coming fiscal year. : Will Consider Recommendations. Senator Bingham, Republican, Con- | neoticut, said the recommendations in ti presidential message Wwould be considered by the committee. ew of the testimony of the last few days by representatives of various organizations, it will no doubt _come as a shock to them,” Senator Bingham added. “But as-Jnembers of the com- mittee have pointed out during the hearing, we are faced with an actual situation and not a theory. I hope we can: work the problem out in & way that will be fair to all.” Byrnes Makes Comment. nator Bymes made this comment: B!! was my?;vor of a_ direct cut of 10 per cent ‘on every check peid out by the Govemjmient for compensation or pther purpese. other than contract. The furlough plan has resulted in a tremendous t0 the Government because of thestime of high-salaried employes ¢ ‘' interpreting it. ‘The controller meral has rendered more than 230 on the act. If the - President’ hds come to the :,iuect cut ‘policy, it occurs to me that the furlough should be sbolished and a direct cut 'of whatever percentage can be agreed mpon as fair and rea- scnable in this ethergency.” Senator MeKellar commented 28 fol- lows: K “I never-have m;;vored‘ mzo'laulh“n system. It is cumbersome, - derstand, and hard to put in practice. But.I think there ought to be a fiaf reasonable. cut and so adjusted as bring about. the five-day week. I have no doubt the matter will be (horou:hl: considered by the Economy Committee. Urges Higher Exemption. Senator Hattie W. Caraway, Demo- crat, Arkansas, .x.‘! the only woman member of the Sénate, urged greater consideration for Jow salaried employes by raising the exemption. ““If there must be another cut, the| exemption oughf to be greater than| $1,000,” Mrs, Caraway ukl’i Iltlf vex;y hard for people on small salaries to get alr now.” She said she wanted to study the subject further before say- ing where she thought the exemption should be placed. GOLD STANDARD HELD NECESSARY FOR WORLD Pierre Quesney Also Says Debts Must Be Removed and Tariff Systems Changed. By the Associated Press. PARIS, December 6.—Pierre Quesnay, director of the World Bank, sald in a soeech at the Sorbonne last night that| the destruction of economic civilization | cennot be avoided unless the interna- | tional gold standard is re-established, | the burden of international debt be removed and a radical change be made| in the tariff systems. He advocated creation of “an arbitral ecmmittee whose decisions would be obligatory for all nations on certain economic and financial questions, and which would be the supreme council of the government chiefs.” No country acting alone can bring about resumption of economic activity, he said. The existing “economy anarchy,” he added, is the result of a lack of organization of world produc- tion, SECOND BODY IS TAKEN FROM PLANE WRECKAGE Dragging Is Resumed for Other Victims of Crash in Lake Erie. By the Associated Press. DETROIT, December 6.—The body of Catherine Seis, 29, was recovered | late yesterday from the wreckag: of & plane crashed Saturday in Lake Erle with a party of two men and two women When the plane first was inspected Saturday, the body of Miss Marcella | Kopnitsky, 16, of Punxsutawney, Pa. | niece of Miss Seis, was removed. Then the wreckage sank. Dragging will be resumed for the bodies of Patrick Tuchey, 45-year-old war-time pilot and veteran commercial fiyer, and Thomas Neal Brown, mem- Two ENPLOYES R0 FOR PAY CUT FIGHT Federal Workers Will Make Every Effort to Check Fur- ther Reductions. An intensified warfare on the pro- | posal for a new Government’ pay cut | loomed today. The provisions of the economy act have been under fire by organized PFederal workers since they becamc operative, and with these proposed to | be carried over, and an additonal wage | reduction levied to bring the average to 14.8 per cent, as President Hoover explained in his message, it was cer- | tain that the employes would bring all | possible pressure to bear against the plan. John Arthur Shaw, president of the | American Federation of Government | Employes, an affiliate of the American | Federation of Labor, in commenting on | the new program, emphasized that his organization is cpposed to any Federal | wage cut at all, believing that this en- | courages unwarranted reduction in in- | dustr; t the National Federation of Fed- eral Employes, which likewise has op- posed the economy act vigorously, & statement was expected later in the day. | Message No Surprise. | | President Shaw, whose organization | | was created after the National Federa- | tion of Federal Employes had seceded | | from the American Federation of La- | bor, said the President’s recommenda- tion did not come as a surprise, “as| there has been something like that in the air.” “The American Federation of Gov- ernment Employes,” h> said, “opposes pay cuts either in Government or pri- vate industry.” Continuing, he said that by cutting| wages labor is cheapsned, and that this cnly gives an opportunity to business men inclined that way to cut down their personnel costs On the contrary, Shaw declared, there are business interests which feel that wage-cutting will only intensify the de- pression, and that the Government is | the “last line of defense” against the | | spread of retrenchment in this direc- | tion. | “The American Federation of Gov- ernment Employes.” their head con- cluded, “is not viewing this matter only | as Federal workers, but as private citi- | zens.” Seek Repeal of Act. Meanwhile demands for repeal of the economy act came from two postal groups—National Association of Letter Carriers and United National Associa- tion of Post Office Clerks of the United States, which have conducted an inter. mittent bombardment against the legis- lation since it came into operat: In an “argument for repeai” tl mer pointed out that the $41,000,000 | saving forecast in the Post Office De- | | partment this year by reason of the act is less than 1 per cent of total Federal expenditures for the fiscal year 1931, which are placed at $4,219,950,339, and but 2 per cent of the deficit for the fiscal year 1932, amounting to $2,000,- 000.000. The Post Office clerks. who submitted a memorial outlining their legislative demands both to the Postmaster Gen- eral and Congress, express opposition to a continuance “of the furlough act or any other form of wage reductipn at the expense of Government embloyes until it becomes a necessity and & last Tesort.” | . Both organizations call for elimina- | {tion of inequities that have developed in the administration of the act, laying emphasis on the plight of substitutes whus:“xk portunities have bzen partic ly cted by reason of the goveinmental _Tetrenchment prcgram, coupled with the falling volume of mail. BACONIAN CONTROVERSY BROUGHT UP IN REVIEW Shakespeare Society of Washington Presents Two Scenes From “The Winter's Tale.” The Baconian controversy appeared momentarily at the monthly meeting of the Stakespeare Soclety of Washington Iest evening when H. H. B. Myers of | the Library of Congress gave his annual | review of “The Year’s Books on Shake- speare.” | Referring to the claims of the Bacon | partisans,” Mr. Meyers quoted the epi-| gram of the late Dr. Charles William | magnficent sense of humanity, of in- |dividual and community responsibility | to & degree in which all America may | take great pride. THE EVENING STAR, WASHINGTON, D. C., TUESDAY, DECEMBER 6, 1932. TEXT OF PRESIDENT’S MESSAGE text of the President’s mes- sage, delivered to Congress to- day, follows: To the Senate and House of Representative In accordance with my constitutional duty, I transmit herewith to the Con- gress information upon the state of the Union, together with recommendation of measures for its consideration. Our country is at peace. Our na- tional defense has been maintained at a high state of effectiveness. All of the executive departments of the Govern- ment have been conducted during the year with a high devotion to public in- terest. There has been a far larger degree of freedom from industrial con- flict. than hitherto known. Education and science have made further ad-| vances. The public health is today at its highest known level. While we bave recently engaged in the aggres- sive contest of a national election, its very tranquility and acceptance of its results furnish abundant proof of the strength of our institutions. In the face of widespread hardship our people have demonstrated daily a for the welfare of the less fortunate. They have grown in their conceptions and organization for co-operative ac- tion for the common welfare. In the provision against distress dur- ing this Winter, the great private agencies of the country have been mo- 7ed again; the generosity of our people has again come into evidence Likewise the local authorities and the States are engaged everywhere in supplemental measures of relief. The provisions made for loans from the Reconstruction Pinance Corporation, to States that have ex-| hausted their own resources, guarantee that there should be no hunger or suf- fering from cold in the country. The large majority of States arc showing & sturdy co-operation in the spirit of the Federal aid. Condition of Heaith, The surgeon general, in charge of the Public Health Service, furnishes me with the following information upon the state of public health: Mortality rate per 1,000 of popula- tion on an annual basis from repre- sentative States: First 9 months of— Infant 1928 67.8 65.8 62.0 eneral . 119 S0 . 114 112 60.0 . 106 55.0 The sickness rates from data avail- able show the same trends. These facts indicate the fine endeavor of the agen- cies which have been mobilized for care of those in distress. Economic Situation. The unparalleled world-wide economic depression has continued through the year. Due to the Eurcpean collapse, the situation developed during last Fall and Winter into a series of most acute crises. The unprecedented emergency measures enacted and policies adopted undoubtedly saved the country from economic disaster. After serving to de- fend the national security, these meas- ures began in July to show their weight and influence toward improevement of conditions in many parts of the coun- try. The following tables of current business indicators show the general economic movement during the past 11 months. Monthly business. indices with sea- sonal variations eliminated: [Monthly Average Year and month Production Factory Employment Freight-car Loadings Industrial 1931 December 1932 January . February March . October The measures and policies which have procured this turn toward recovery should be continued until the depres- | sfon is passed, and then the emergency | agencies shouid be promptly liquidated. The expansion of credit facilities by the Federal Reserve System and the Recon- struction Finance Corporation has been of incalculable value. The loans of the latter for reproductive works, and to | Wallace to the effect that “it is not necessary for scholarship to concern | itself with the vagaries of ignorance.” | No one in the audience which filled the | Corcoran Gallery auditorium took up the challenge. Dr. E. V. Wilcox discussed the popu- | larity of tre American poet, Henry | Wadsworth Longfellow, abroad. He | declared that he is as widely read at | present in India as Rabindrinath Tagore. Under the direction of Miss A. M.| Fauntjeroy the society group of players gave two scenes from ‘The Winter's | Tale.” Murray Sheehan, who appeared | in a make-up strikingly reminiscent of | the personality of Shakespeare himself, | as depicted in his portraits, had the Tole of Leontes. May Jameson Bryant Was a charming and competent Paulina | Foote played Hermione | Others in the cast were | and Kitty William Heintz, Kent Dyer and Irma| | admirably. Vaughan. — . FOUR ESCAPE DEATH Army Bombing Plane Plunges in| Pacific Ocean in Test. LAGUNA BEACH, Calif., December 6 | (®).— Four Army ~aviators narrowly escaped death yesterday when a bomb- | ing plane in which they were making | | a speed test plunged into the Pacific Ocean. | Bruised and shaken, the men, Lieut. George Campbell, Corpl. G. W. Hollo- | well, Corpl. Mitchell Murphy and Pvt. | A. A. Hunzeker, managed to keep afloat | until a boat rescued them. The ship belonged to the 11th Bom- bardment Group, March Field. WOMAN FIGHTS BANDIT CHEYENNE, Wyo., December 6 (%), —The West has two-fisted women. J. W. Herrin, bookkeeper of a grocery store here, started to & bank yesterday with $5,000 in cash and checks when | an unarmed but masked robber jumped |'on his back. Herrin, who has only one arm, struggled with the man. Miss Margaret Talbot, Herrin’s as- sistant, ran to his aid and. delivered a railways for the creation of employ- ment; its support of the credit struc- | ture through loans to banks, insurance | compenies, railways, building and loan | associations, and to agriculture has pro- | tected the savings and insurance poli- | cies of millions of our citizens and has | relieved millions of borrowers from | duress; they have enabled industry and business to function and expand. The assistance given to Farm Loan Banks, the establishment of the Home Loan Banks and Agricultural Credit Associa- tions—all in their various ramifications— have placed large sums of money at the disposal of the people in protection and aid. Beyond this, the extensive organ- ization of the country in voluntary ac- tion has produced profound results. Direct Jobless Aid. The following table indicates direct axpenditures of the Federal Government in aid to unemploymept, agriculture, and financial relief over .the past four years. The sums applied to financial relief muitiply themseives many fold, being in considerable measure the ini- tial capital supplied to the Reconstruc- tion Finance Corporation, Farm Loan | Banks, etc., which will be recovered to | the Treasury: | | | Fiscal year ending June 30— 1930 | tion of the Federal Government which, | | public works during the past four years * Public Buildings, Highways, Rivers and Harbors and their maintenance, naval and other vessels construction, hospitals, etc. Major Points By the Assoclated Press. Here are the major proposals which President Hoover lald before Congress today for restoring economic equilibrium: A special manufacturers’ sales tax to cover practically all manufactures at a uniform rate, except necessary food and possibly some grades of clothing. Widespread reforms of the “first requisites for further recovery.” Sweeping reorganization o grouping and consolidating of more than 50 Federal departments and agencies. A flat 11 per cent pay cut $1,000 exemption, in addition under the furlough system. Reductions in appropriations under those for the present fiscal year of $830,000,000, offset in part by increases of $250,000,000 in “uncontroilcble items.” Curtailment of expenditures for public works from $717,- 262,000 to $442,769,000. Elimination of certain payments to veterans arising from “jll-considered legislation.” The second direction for action is the complete reorganization at once of our banking system. The shocks to our eco- nomic life have undoubtedly been mul- tiplied by the weakness of this system, and until they are remedied recovery will be greatly hampered. The third direction for immediate ac- | tion is vigorous and whole-souled co- operation with other governments in the economic field. That our major difficulties find their origins in the eco- nomic weakness of foreign nations re- quires no demonstration. The first need today is strengthening of commodity prices. That cannot be permanently accomplished by artificialities. It must be accomplished by expansion in con- sumption of goods through the return of stability and confidence in the world at large and that in turn cannot be fully accomplished without co-operation with other nations. Balancing the Budget. I shall in due course present the ex- ecutive budget to the Congress. It will show proposed reductions in appropria- | tions below those enacted by the last session of the Congress by over $830,- | 000,000. In addition I shall present the | necessary executive orders under the | recent act authorizing the reorganiza- if permitted to go into force, will pro- duce still further substantial econo- mies. These sums in reduction of ap- propriations will, however, be partially offset by an increase of about $250,- 000,000 in uncontrollable jtems such as increased debt services, ete. In the budget there is included only the campletion of the Federal public works projects already undertaken or under contract. Speeding up of Federal 2s an aid to employment has advanced many types of such improvements to | the point where further expansion can- not be justified in their usefulness to the Goverment or the people. As an| aid to unemployment we should be- yond the normal constructive programs substitute reproductive or so-called self-liquidating works, Loans for such purposes have been provided for through the Reconstruction Finance 1923-1925=100] Department Store Sales, Value Bullding Contracts, All Types tric Power Consumption Industrial Elec- 891 93.9 | 98.8 | 88.0 | 822 | 820 8.1 9.2 735 84.0 844 Corporation. This change in charac- ter of projects directly relieves the tax- payer and is capable of expansion into | & larger field than the direct Federal | works. The reproductive works consti- tute an addition to national wealth and to future employment, whereas further undue expansion of Federal public works is but a burden upon the future. The Federal construction program thus limited to commitments and work in progress under the proposed appro- priations contemplates expenditures for the next fiscal year, including naval and other vessel construction, as well | as other forms of public works and maintenance, of a total of $442,769,000, as compared with $717,262,000 for the present year. ‘The expenditure on such items over | the four years ending June 30 next| will amount to $2,350,000,000, or an | amount of construction work eight | times as great as the cost of the Pan- | ama Canal and, except for completion | of certain long-view projects, places | the Nation in many directions well | 2head of its requircments for some years | to come. A pormal program of about | $200,000,000 per annum should here- after provide for the country’s neces- sities and will permit substantial fu- ture reduction in Federal expenditures. Continuance of Furloughs. I recommend that the furlough sys- tem installed last year be continued, not only because of the economy pro- duced, but because, being tantamount to the “5-day week,” it sets an exam- ple which should be followed by the | Agricultural Relief and Public Works* Financial Loans $410,420,000 $156,100,000 574,870,000 196,700,000 655,880,000 712,700,000 | 717,260,000 52,000,000 | .. $2,358,430,000 $1,177,500,000 | | | agencies are placed cheek by jowl into Continued constructive policies pro- | country and because it embraces within | moting the economic recovery of the |its workings the “spread .work” prin- country must be the paramount duty of | ciple and thus serves to maintain a the Government. The result of the |number of public servants who would agencies we have created and the poli- | otherwise be deprived of all income. I | cles we have pursued has been to but- | feel, however, in view of the present |tress our whole domestic financial | economic situation and the decrease in | structure and greatly to restcre credit | the cost of living by over 20 per cent, | facilities. But progress in recovery re- |that some further sacrifice should be | quires another element as well—that is | made by salaried officials of the Gov- fully restored confidence in the future.|ernment over and above the 8! per 4 ciall, rominent Detroit | number of well placed blows. The rob- ?:rrnuny e L | ber fled without the money. Table Showing U. S. Salary Plan ‘The follow] table shows how the pay cut proposed in President Hoover's ‘message to Con‘:r'cs.s ‘would operate, with the reduction of 8Y; per cent applying to the flat salary and that of 11 per cent against the annual rate in excess of $1,000. Basic salary. $1,200 1,500 1,800 2,000 2,500 3,000 Net salary. $1,078.00 1,320.00 1,562.00 1,723.33 2,126.67 2,530.00 11 per cent red. (temporary). $22 55 28 110 8% per cent red. (economy act). $100.00 125.00 150.00 | Institutions end men may have Te- | sources and credit, but unless they have confidence progress is halting and in- secure. Strengthening Confidence. There are three definite directions in which action by the Government at cnce can contribute to strengthen fur- ther the forces of recovery by strength- ening of confidence. They are the nec- essary foundations to any other action, | and their accomplishment would at| once promote employment and increase prices. The first of these directions of action is the continuing reduction of all Gov- >rnment expenditures, whether national, State or local. The difficulties of the country demand undiminished efforts toward economy in government in every direction. Em:rw;id in this n:l;bltehn: is the unquestioned balancing Federal budget. That is the first ne- cessity of national stability and is the in an absolutely safe and foundation of further recovery. It must | port. be balanced | cent reduction under the furlough sys- |tem. I will recommend that after, ex- | empting the first $1,000 of salary there should be a temporary reduction for one year of 11 per cent of that part of all Government salaries in excess of the $1,000 exemption, the result of which, combined with the furlough system, will average about 14.8 per cent reduction in pay to those earning more than $1,000. I will recommend measures to elim- inate certain payments in the veterans’ services. I conceive these outlays were entirely beyond the criginal intentions of Congress in building up veterans’ al- lowances. Many abuses have grown up from f{ll-considered legislation. ‘They should be eliminated. The Nation should not ask for a reduction in allow- ances to men and dependents whose dis- abilities rise out of war service nor to those veterans with substantial service who have become totally disabled from non-war- causes and who are at the same time without other sure manner if full confidence is to be inspired. Emphasized banking system as one of the f the Govern}nent. with re- for Federal employes, with a to the present 8!5 reduction bility should fall upon the Federal Gov- ernment. Many of the economies recommend- ed in the budget were presented at the | last session of -the Congress but failed | of adoption. If the Economy and Ap- | propriations Committees of the Con- | gress in canvassing these proposed ex- penditures shall find further reductions which can be made without impairing essential Government services, it will be welcomed both by the country and by myself. But under ro circumstances | do I feel that the Congress should fail to uphold the total of reductions rec- ommended. Disappointment in Revenues. Some of the older revenues and some of the revenues provided under the act passed during the last session of the Congress, particularly those generally referred to as the nuisance taxes, have not been as prolific of income as had been hoped. Further revenue is neces- sary in addition to the amount of re- ductions in expenditures recommended. Many of the manufacturers’ excise taxes upon selected industries not only failed to produce satisfactory revenue, but they are in many ways unjust and dis- criminatory. The time has come when, if the Government to have an ade- quate of revende to assure a bal- anced budget, this system of special manufacturers’ excise taxes should be extended to cover practically all manu- factures at a uniform rate, except nec- essary food and possibly some grades of clothing. At the last session the Congress re- sponded to my request for authority b01 reorganize the Government depart- | ments. The act provides for the | grouping and consolidation of execu- | :ve and administrative agencies accord- | Ing to major purpose, and thereby re-| ducing the number and overlap and du- plication of effort. Executive orders issued for these purposes are required to be transmitted to the Congress while in session and do not become ef- fective until after the expiration of 60 calendar days after such transmission, unless the Congress shall sooner ap-| prove. I shall issue such executive orders within a few days grouping or consoli- dating over 50 executive and adminis- trative agencies including a large num- ber of commisisons and “independent” agercies. The second step, of course, remains that after these various bureaus and such groups, the administrative officers in charge of the groups shall eliminate their overlap and still further consoli- date these activities. Therein lie large economies. The Congress must be warned that a host of interested persons inside and outside the Government, whose vision is concentrated on some particular function, will at once protest against these proposals. These same sorts of activities have prevented reorganization of the Government for over a quarter of a century. They must be disregarded if the task is to be accomplished. Banking. ‘The basis of every other and every further effort toward recovery is to re- organize at once our banking system. The shocks to our economic system have undoubtedly multiplied by the weakness of our financial system. I first called attention of the Congress in 1929 to this condition, and I have unceasingly reccmmended remedy since that time. The subject has been exhaustively in- vestigated both by the committees of the Congress and the officers of the Federal Reserve System. The banking and financial system is presumed to serve in furnishing the essential lubricant to the wheels of in- dustry, agriculture, and commerce, that is, credit. Its diversion from proper use, its improper use, or its insufficiency | instantly brings hardship and disloca- | tion in economic life. As a system our banking has failed to meet this great emergency. It can be said withour ques- tion of doubt that our losses and dis- tress have been greatly augmented by its wholly inadequate organization. Its inability as a system to respond to cur needs is today a constant drain upon progress toward recovery. In this statement I am not referring to indi- vidual banks or bankers. Thousands of them have shown distinguished courage and ability. On the contrary, I am re- ferring to the system itself, which is so organized, or 50 lacking in organiza- tion, that in an emergency its very mechanism jeopardizes or paralyzes the | action of sound banks and its instabil- ity is responsible for periodic dangers 1o our whole economic system. Bank failures rose in 1931 to 10% per cent of all the banks as compared to 1% per cent of the failures of all other types of enterprise. Since January 1, 1930, we have had 4,665 banks suspend, with $3,300,000,000 in deposits. Partly from fears end drains from abroad, partly from these failures themselves (which, indeed, often caused closing of sound banks), we have witnessed hoard- ing of currency to an enormous sum, rising during the height of the crisis to over $1,600,000,000. The results from interreaction of cause and effect have expressed themselves in strangulation of credit which at times has almost stified the Natlon's business and agri- culture. ‘The losses, suffering and trag- edies of our people are incalculable. Not alone do they lie in the losses of savings to millions of homes, injury by deprival of working capital to thou- sands of small businesses, but also, in the frantic pressure to recall loans to meet pressure of hoarding and in liqui- dation of failed banks, millions of other people have suffered in the loss of their homes and farms, businesses have been ruined, unemployment increased, and farmers’ prices diminished. That this failure to function is un- necessary and is the fault of our par- ticular system is plainly indicated by the fact that in Great Britain, where the economic mechanism has suffered far greater shocks than our own, there has not been a single bank failure dur- ing the depression. Again in Canada, where the situation has been in large degree identical with our own, there have not been substantial bank failures. Defended in Crisis. ‘The creation of the Reconstruction Finance Corporation and the amend- ments to the Federal Reserve act served | Go to defend the Nation in a great crisis. They are not remedies; they are relief. It is inconceivable that the tion Corporation, which has extended aid to nearly 6,000 institutions and is manife but & temporary device, can 80 _on in itely. 1t is today s matter of satisfaction |1 Reconstruction have greatly lessened. Corporation acute f the danger and this faflure to respond to national necessities must be ended and the meaSures o end them can be safe- ly undertaken. Methods of reform have been exhaustively examined. There is no reason now why solution should not be found at the present session of the Congress. Inflation of currency or governmental conduct of banking can have no part in these reforms. The Government must abide within the fleld of constructive organization, regulation and the enforcement of safe practices only. Parallel with reform in the banking lews must be changes in the Federal Farm Loan g system and in the Joint Stock id Banks. Some of these changes should be directed to perma- nent improvement and some to emer- gency aid to our people where they wish to fight to save their farms and homes. I wish again to emphasize this view —that these widespread banking re- forms are a national necessity and are the first requisites for further recovery in agriculture and business. They should have immediate consideration as steps greatly needed to further recov- | ery. Co-operation With Nations. Our major difficulties during the past two years find their origins in the shocks from economic collapse abroad which in turn are the aftermath of the Great War. If we are to secure rapid and assured re_overy and protection for the | future we must co-operate with foreign nations in many measures. We have actively engaged in a World Disarmament Conference where, with success, we should reduce our own tax burdens and the tax burdens of other major nations. We should increase po- litical stability of the world. We should lessen the danger of war by increasing defensive powers and decreasing offen- sive pcwenvgéagmons, We would thus open new of econcmic expansion for the world. We are participating in the formula- tion of a World Economic Conference, successful results from which would contribute much to advance in agricul- tural prices, employment and business. Currency depreciation and correlated forces have contributed greatly to de- crease in price levels. Moreover, from these origins rise most of the destructive trade barriers now stifling the commerce of the world. We could by successful action increase security and expand trade through stability in international exchange and monetary values. By such action world confidence could be re- stored. It would bring courage and stability, which will reflect into every home in our land. The European governments, obligated to us in war debts, have requested that there should be suspension of payments due the United States December 15 next, to be accompanied by exchanm views upon this debt question. Government has informed them that we do not approve of suspension of the De- cember 15 payments. I have stated that I would recommend to the Congress methods to overcome temporary ex- change difficulties in connection with this payment from nations where it may be_necessary. In the meantime I wish to relterate that here arg three great fields of inter- national action which must be consid- ered not in part but as a whole. They are of most vital interest to our people. ‘Within them are not only grave dangers if we fail in right action but there also lie immense opportunities for good if we shall succeed. Within success there lie major remedies for economic distress and major progress in stability and se- curity of every fireside in our country. The welfare of our people is depend- ent upon successful issue of the great causes of world peace, world disarma- ment and organized world recovery. Nor is it too much to say that today as never before the welfare of mankind and the preservation of civilization depend upon our solutfon of these questions. Such solutions cannot be attained except by honest friendship, by adherence to agreements entered upon until mutually revised and by co-operation amongst nations in a determination to find solu- tions which will be mutually beneficial. Other Legislation. I have placed various legislative needs before the Congress in previous mes- sages and these views require no ampli- fication on this occasion. I have urged the need for reform in our transporta- tion and power regulation, in the anti- trust laws as applied to our national re- source industries, western range con- servation, extension, of Federal aid to child-health services, membership in the World Court, the ratification of the Great Lakes-St. Lawrence Seaway Treaty, revision of the bankruptcy acts, revision of Federal court procedure and | many other pressing problems. These and other special subjects I shall where necessary deal with by spe- cial communications to the Congress. The activities of our Government are 50 great, when combined with the emergency activities which have arisen out of the world crisis, that even the | briefest review of them would render the annual message unduly long. I shall therefore avail myself fif '.heglu:l that every detail of the Government is covered in the reports to the Congress by each of the departments and agen- cies of the Government. Conclusion. It seems to me appropriate upon this occasion to make certain general ob- servations upon the principles which must dominate the solution of problems now pressing upon the Nation. Legisla- tion in response to national needs will be effective only if every such act con- forms to a complete philosophy of the people’s purposes and destiny. Ours is a distinctive government with a unique history and background, _consciously dedicated to specific ideals of liberty and to a faith in the inviolable sanctity of the individual human spirit. Further- more, the continued existence and ade- quate functioning of our government in preservation of ordered stimulation of progress depends upon the maintenance of State, local, institu- tional and individual sense of responsi- bility. We have builded a system of in- dividualism peculiarly our own which must not be forgotten in any govern- mental acts, for from it have grown greater accomplishments than those of any other nation. On the social and economic sides, the background of our American system and the motivation of progress is essen- tially that we should allow free play of social and economic forces as far as will not limit equality of opportunity and as will at the same time stimulate the ini- tiative and enterprise of our people. In the maintenance of this balance the | Federa] Government can permit of no | privilege to any person or group. Itz should act as a regulatory agent and not | as a participant in economic and social ife. The moment the Government par- ticipates, it becomes a competitor with the people. As a competitor it becomes at once a tyranny in whatever direction | | |it may touch. We have around us| numerous such experiences, no_one of | | which can be found to have justified itself except in cases where the people | as a whole have met forces beyond their control, such as those of the Great War | and this great depression, where the full powers of the Federal Government must | be exerted to protect the people. But even these must be limited to an emergency sense and must be promptly ended when these dangers are overcome. With the free development of science and the consequent multitude of inven- tions, some of which are absolutely revolutionary in our national life, the vernment must not only stimulate the social and economic responsibility of individuals and private institutions but it must also give leadership to co- operative action amongst the people which will soften the effect of these revolutions and thus secure social trans- formations in an orderly manner. The that the rate of bank failures, of the upon the hoarding and hest form of self-government is the tary co-operation within our people for such purposes. liberty and |- NEW U.S. PAY (1 President Also Urges Sales Tax in Message to Congress. (Continued Prom First Page.) banking has falled to meet this great emergency,” he said. without question of doubt that our losses and distress have been greatly augmented by its wholly inadequate organization.” Failures Unnecessary. The President pointed out that bank failures rose in 1931 to 10’ per cent of all the banks as compared to 1% per cent failures of all other types of | enterprise. He added that since Jan- uary 1, 1930, this country has had 4,665 banks suspend, with $3,300,000,- 000 in deposits. “That this failure to function is un- necessary and is the fault of our par- ticular system,” he continued, *“is plain- ly indicated by the fact that in Great Britain, where the economic mechanism has suffered far greater shocks than our own, there has not been a singic bank failure during the depression. Again, in Canada, where the situation has been in large degree identical with our own, there have not been sul tial bank failures.” With regard to the foreign debts owed this Government the President said the | United S Government had informed the debtor nanomuf.h:', it did not -\‘:); prove their requests for suspension the debt payments due December 15. “I have stated,” said the President, | “that I would recommend to the Con- gress methods to overcome temporary exchange difficuities in connection with this payment from nations where it is necessary.” He said nothing about recommending to Congress the creation of a new agency to discuss the revision of the foreign debts, as requested by the for- eign nations. The President, in his re- cent conferences with President-elect Roosevelt and the Republican and Democratic leaders of Congress, found no encouragement to his proposal to set up such an agency. Considered as Whole. The discussion of the foreign debts | by the President was part of his gen- eral treatment of the subject of eco- nomic co-operation with gther nations. | He linked it with the question of dis- | armaments and with the coming Inter- national Economic Conference. Here, he said, are three great fields of inter- national action—disarmaments, debts and the Econcmic Conference—“which must be considered not in part, but as a whole. They are of most vital inter- est to our people. Within thent there are not only grave dangers if we fail in right action, but there also lie great opportunities for good if we succeed.” ‘“The welfare of our people is de- pendent upon successful issue of the | great causes of world peace, world dis- | armament and organized world recov- ery. Nor is it too much to say that to- day as never before the welfare of man- kind and the preservation of civiliza- tion depend upon our solution of these questions. Such solutions cannot be attained except by honest friendship, by adherence to agreements entered upon until mutually revised and by co- operation among nations in a deter- mination to find solutions which will be mutually beneficial.” ‘The painted by the President of the conditions in this country were not all black. He held eut great hope for recovery, described the steps which already have been taken to relieve con- ditions, including the setting up of the Reconstruction Finance Corporation and the great work of stabilization it has employment and destitution, the mor- tality rate in ‘this country, the Presi. dent said, is lower both for the whole people and for infants in 1932 than it was in 1929, the last year of the prosperity.” He showed, too, that the terially since last July, with more production, more employ- ment, more shipments of freight, more sales, greater value of exports and im- ports, greater consumption of electric | power and more building contracts. Incalculable Value. “The measures and policies,” said the President, “which have procured this turn toward recovery should be con- tinued until the depression is passed, and then the emergency agencies should be promptly liquidated. The expansion of credit facilities by the Federal Re- serve System and the Reconstruction Finance Corporation has been of incal- culable value.” The aid given by the Federal Gov- | ernment to the unemployed and to agri- | culture, the President said, had been | very great. In the last four fiscal years, including the present, he pointed out, a total of $2,358,430,000 had been put out by the Government for public works. and a total of $1.177.500.000 for agricultural relief and financial loans. ASKED BY HOOVER === “It can be said | side balanced budget. the Pr Government’s must! b in a safe and way if dence is to be restored in Of the cuts in Go i the uphold the total of reductions recom- mended. He said he would welcome further cuts in expenses if Congress should could find a way to them with- out impairing the essential Government services. In addition to the cuts in Govern- ment pay and expenditures for public work recommended, the President pro- posed the eliminaticn of certain pay- ments in the veterans® services, similar to those he proposed last year. He warned the Congress that when he submitted his recommendations for re- organization of the Government there would be many interesied persons, in- and outside the Government, knocking at the Capitol doors and urg- ing that these reorganizations be not made. For a quarter of a century such activities, he said, have prevented reor- ganization of the Government in the interest of econcmy and the taxpayer. Refers to Recent Election, In conclusion the President took oc- casion to stress the need of maintain- ing in this country the principles of in- dividualism and independence upon which the American peopls have grown great. “Ours,” he said, “is a distinctive Gov- ernment with a unique history and background, consciously dedicated to specific ideals of liberty and to a faith in the inviolable sanctity of the in- dividual human spirit.” He strongly urged & continuance of “ordered Iiberty.” One reference the President made to the recent campaign. While he pie- tured conditions in this country as far from disastrous, he said: “While we have recently engaged in the aggressive contest of a national election, its very tranquillity and the acceptance of its results furnish abundant proof of the strength of our institutions.” JOBLESS HUNDREDS TURN TO TRAPPING 5,000 or 6,000 Men in Eastern Ne- braska Are Seeking Pelts. Price Outlook Poor. By the Assoclated Press. LINCOLN, Nebr., December 6—The quest for fur, which lured early fortune hunters to the West has sent jobless men to the woodlands again this Fall But low prices indicate there'll be no pot of gold at the end of the trapline. ‘The trapping season started recently in Eastern Nebraska, with 5,000 o 6,000 men on the trail of muskrat, "coon, ‘possum, skunk and mink. Although a prairie region, the State shipped a quarter mil- lion dollars’, worth of fur to Eastern manufacturers last year and three or four times that amount in the days of peak prices. State Game Warden Frank O’Connell estimates, however, that this Winter's haul, even if larger than some others, would be worth little more than $125,000. The unemployed this year are joining farm beys in setting their traps along the creeks. Willlam H. Cadwallader, might be trapped, but sales would taper off as the trappers became discouraged. Prices were about 50 per cent less than those in 1931. While even in a day when fur fs the fuf A. P. TRAFFIC MANAGER. DIES OF HEART ATTACK By the Assoclated Press. CINCINNATI, December 6.—Harry A. ‘Wilson, 63, for more than 17 years traf- fic manager in the Cincinnati Bureau of the Associated Press, died yesterday of heart attack. He collapsed while at- ;egdln & motion picture show with e. Wilson joined the A. P. as a_tele- graph operator in Texas in 1894. While in Des Moines in 1901 he left the serv- ice to enter the insurance business in Milwaukee, but rejoined the new organi- zation in 1905 in Milwaukee. A son, Harry, jr, was killed in the World War. Wilson first learned of the cleqt.h“'whleknt hl:! son’s name came in a casualty e was copying fi A. P. wire. o g g S R Hours Are Lengthened. BUDAPEST (#).—The five-hour day for Hungarian government officials ended when Premier Goemboes decreed that working hours in_all governmnt offices be extended one hour, beginning at 8:30 am .and lasting until 2:30 p.m. — Chile's National Economic Council will attempt to. rehabilitate industry and commerce and eliminate unemploy=- ‘When he took up the question of a He FA S New! “TWIXT” COAT $l9.75 Between an Overcoat ment. % This ain’t ' No Santa Claus! ’s JIMMIE SAVO, MOUS funny man at the FOX this week, BUT he’s going to help PLAY Santa to little KIDDIES with the “Buaga BUNCH and Me,” over WMAL at 7:30. _MEN, play Santa TO yourself with a and a Topcoat. The perfect weight for mild Washington Win- ters. An exclusive Kaufman idea . . . in every conceivable model, and color and in the fabrics you like. NEW “Twixt” Coat BUY it on the famous BUDGET PLAN. D. J. KAUFMAN, Ine. 1005 Penna. Ave. 1744 Penna. Ave. - 14th and Eye Sts. /