The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-08
Congress Is Requested to
Form National Finance
Corporation to Help in
Revival of Business.
TEXT OF PRESIDENTS MES
SAGE ON PAGE 8.
BY RAYMOND CLAPPER
United Press STAFF Correspondent

WASHINGTON, Dec. 8.-PreSi-
dent Hoover today asked the peo-
pie to accept two-year increase in
taxes and urged congress to form a
national reconstruction finance cor
poration to aid in rehabilitation of
business.
Those two proposals were the
corner stones of the Presidents pro-
gram, given to congress today in the
most momentouS message chief
executive has delivered since the
war.
The time has come for aggressive,
forward action, the President main
tanned. The nations resources are
greater than ever before, he said. He
expressed confidence in the countryS
ability largely to overcome the de-
preston, regardless of conditions in
other parts of the world.
Urges Courage to Nation
All that is needed is to revive
confidence, he said; summon cour-
age and determination, loosen cred
it, and put to work the country'S
huge resources and stores of money.
He emphasized that aid to the
railroads must form a part of the
reconstruction program, as they af-
feet the vitalS of the country'S eco
nomic life.
He proposed temporary tax in
crease to end July l. 1884, which, it
is estimated unofficially, would
amount to almost $1,000000,O00 a
year. Details were reserved for a
later time, but Mr.. Hoover gave a
general warning that the country
must prepare to take on an in
creased emergency burden, due to
sharp declines in tax revenues.
He said there must be insistent
and determined reduction in govern
ment expenses, and that deficit must
be met partially by borrowing, for
an attempt to cover them by in
creased taxes would retard recov-
cry"
: Asks Emergency Taxation
He would fix the tax increase so
as to balance the budget for the
year beginning next July l, except
for statutory debt retirement. This
would require about 1921 900, 900. A
net increase in the national debt of
SILL 100000, exclusive of debt re-
tirement, is indicated for the cur
rent fiscal year, now almost half
over, so that the proposed tax in
crease is not expected to cover that
amount in full.
1.-THE additional taxation should
be imposed solely as an emergency
measure terminating definitely two
years from July / next" Mr.. Hoo
yer said.
Mr.. Hoover also presented the
broad outline of an emergency Gre
construction corporation" like the
former war finance corporation
1t would finance exports, agricul-
ture, industry, railways and finan-
clal institutions and would be liqui-
dated after two years He proposed
the federal government subscribe
reasonable capital" to it.
Opposes Tariff Pension
The amount of capital contem-
plated was not revealed, though I'M
official reports have been that it
would be about $1,00000O,0OO. 1t
would not overlap the recently
formed $500,000,00O National Credit
Corporation, organized to aid banks,
Mr.. Hoover declared he was OPP
posed to general tariff revision.
"Such action would disturb in
dustry, business and agriculture, j." he
said. 1T would prolong the de-
/ preston"
He also registered unqualified
opposition to any direct or indi-
rect government dole" There
were no specific unemployment re-
lief recommendations, though Mr.
Hoover said that through the gov
eminent construction program, the
federal pay roll and veterans aic
the federal taxpayer is contribut-
ing directly to the livelihood of TO-
100000 citizens. The Presidents I'M
employment committee, he said
gives assurance against suffering
during the coming winter"
Silent on Prohibition
Prohibition was not mentioned in
the message.
Because of its bearing on the de-
preston, the oncoming presidential
election, and the evenly divided
congress with its Democratic con-
trolled house, this message was
awaited with exceptional interest at
the Capitol.
Republican congressional leaders
Immediately threw the weight OF
their support behind President Hoo
ver's recommendation Off economic
legislation.
Democrats and independents were
temporarily silent, awaiting a fur
Their opportunity to inspect the mes
sage read in both houses.
Watson Urges Support
An appeal for favorable considera-
ton was made by Republican Floor
Leader Watson of the senate. He
said
81 look upon the message as re-
markedly strong document. 1t is
comprehensive and complete. His
suggestions for new methods of re-
lieving the country from its present
financial and industrial plight are
constructive to a high degree.
Assistant Floor Leader McNary of
the senate said:
1.-THE message is a very clear
presentation of the administration
program and worthy Of perusal by
every one"
Representative La Guardia Rep.,
N. ", one of the leaders of the
insurgent group, said:
THE Presidents heart seems to
be in the right place, but the punch
is just not there"
Speaker Garner declined to dis
'cuss the Hoover message