The New York herald., 1922-10-18
HOOVER SHOWS HOW
POLICIES OF HARDING
POINT TOPROSPERITY
National Debt Cut More
Than Billion and Taxes
100000, 700.
MAIN DANGERS GONE
These Were Naval Rivalry
With England and Rising
Conflict With Japan
ALLIED CREDIT REVIEWED
Secretary Explains British OBJ
legation Is As Per Cent.
of the Total.
ALLIED CREDIT REVIEWED

specioi Dispatch 10 The NEW YORK HERALD.
GRAND RAPIDS, Oct. 17.-Secretary of
Commerce Hoover in a speech here
ness in Government reviewed the
work and accomplishments Of the Har-
ding Administration.
when the Administration came into
power in March. 1921" he said, I'VE
were in the midst of the greatest COM
modify crisis in our history, wherein
prices had fallen an average Of 40 per
cent. and the industrial productivity
of the country was operating on less
than a 60 per cent. basis. We were
confronted with stagnation of COM
mcrce, business and industry.
I'VE were faced with 100000 or
100000 unemployed. Our commerce
was suffering from overwhelming
taxes. The administration Of the Gov
ernment was wasteful and extrava-
CANT. Our expenditures on armament
were enormous and threatened further
increases. We were still without peace
with Germany and Austria. We were
in the midst OF gigantic naval races
with Great Britain. We were steadily
drifting into war with Japan. Respect
for America abroad was at it's lowest
ebb
Peace First Made Sure.
"1f we were TO have a recuperation
IN business the first necessity was TO
secure n solid peace. Therefore peace
treaties werc settled with the former
enemy by which American rights were
protected and business and commercial
relations with them were restored. The
Washington arms conference was sum-
moned and succeeded in not only re-
ducing navies OF the entire world but
beyond this IL settled the two outstand-
ing dangers In our generation-naval
rivalry with England and the rising con-
flict with Japan; reestablished respect
for America throughout the world: en-
abled us to at once reduce the expendi-
ture on ornaments and saved us from
vast increase of expenditure had we
maintained this race of arms.
THE second outstanding mark to be
attacked was the reduction of govern
mental expenditure and taxes. Depart
ments OF the Government have been
vigorously reorganized. Over $1,000
civilian employees have been discharged.
The army has been reduced from
$4,000 TO 13s,000 men. We have re-
duced the navy from $4,000 men 10
$4,000 men. The budget system was
created and accounting and coordina
ton OF governmental expenses was
established for the first time.
AS a result Of hammering for econ
ony in every direction. the expenditures
OF the Federal Government have been
reduced from s5.53s. .0O0, 900 for the year
ended June 80. 1921. to an expenditure
not exceeding sS,77o.0 1000. 600 for the
fiscal year ended June 30. 1928. for
which appropriations have already been
made and the budget settled. There has
therefore been reduction in expend-
iture by 100000.
Reduction In the Debt.
'In the meantime between March 3.
1921 and September 80. 1922, the ma
tional debt has been reduced from s24.-
045.000.00o to s22.sl2. 2.o00.60o, a reduc
tion of s1,233. 100000.
THE funding commission has been
established TO handle the foreign debt.
Practically no interest or payments on
principal has been made by foreign
Governments during tho previous ad-
minstraton. Under this funding COM
mission wo are rapidly reaching n set
Element with tho British Government.
which comprises 45 per cent of this
debt by which their payments are to
begin at once. This will bring into our
Treasury somewhere from Sl15,000,00
20 $500 300. 900 per annum.
"The various bureaus having to do
with care OF our veterans we're con-
soidated and reorganized, When the
administration came In there were
10000 cases OF disabled men accumu.
lated and not attended to. They have
been cleared up and to-day over $4,000
disabled men arc receiving assistance
from the Government In one form OF
another. including vocational training.
This Is indeed the only increase In ex-
penditure thht we have permitted for
here we have used over 500. 600 900 per
annum from economies in other direc-
tions.
Liberty bonds have been restored
10 par with an increase OF II per cent.
in value since March 4. 1921. or a saving
of over $30oC.000.O00 TO tho 1s 000 900
holders of Government securities. Grad
uaily the great national debt Is being
converted into new securities at lower
rates of interest. and with a steady
saving to taxpayers.
Vast Tax Reduction.
axes nave Dcen reduced Dy over
$500. 900 by repeal Of the nuisance
taxes and other war taxes. There re-
mains much to be done. but eighteen
months Is too short time TO do every
thing.
There are some who visualize our
Anal expenditure only in the gross
sum. and who from this assume that by
some fairy wand several billion more
can be cut off. Better understanding OF
the character of our expenditures would
correct that much misinformation. OF
this years budget of some 50, 40. .oo0. 900
Continued on Page Two.