Evening star., 1931-12-08
HOOVER PROPOSES
2YEAR TAX RAISE
Message to Congress Also
Lists Economy and Cut
in Expenses.
Continued From First Page }

AnHuI wsf flnsnce corporation, III
order that the public may be abso
lutely assured and that the Govern
ment may be in position TO meet an,
public necessity"
Other recommendations proposed that
Congress authorize the subscription b,
the Treasury of further capitaI Ia ths
Federal land banks; that a method
should be devised TO make availab biz
quickly to uepositors some portion oi
Their deposits in closed banks: thai
there be established q system of home
loan discount banks; that steps be taken
10 extend, during emergencies the eligi-
bility provisions Of the Federal Reserve
act, and a revision Of the banking laws
In this connection the President said:
Our people have right to banking
system IN which their deposits shall be
safeguarded and the now of credit less
subject to storms The need of q
sounder system is plainly shown by the
extent of bank failures. recommend
the proper improvement of the banking
laws The Congress should investigate
the need for separation between differ
ent kinds of banking and enlargement
of branch banking under proper restric-
tions and the methods by which en-
larped membership in the Federal Re-
serve system may be brought about"
Nothing About Prohibition.
In his message the President stated
that he would send later two special
messages to Congress. one dealing with
foreign relations of the United States
end the other with enforcement of the
laws. His message said little about the
Hoover moratorium for intergovern-
al SNf@fx l~ot, yNrol,4
bition. These topics will be covered, 1t
Is understood, in the special messages
without in any way attempting to
minimize the extent OF the depression
and its effect on American life, the
President pictured the cloud with a sill
ver lining. He said:
eff we lift our vision beyond these
immediate emergencies we ind funda-
mental national gains even amid de-
preston. In meeting the problems of
this difficult period, we have witnessed
remarkable development of the sense
of cooperation in the community. For
the first time in the history Of our ma
jor economic oepressions there has been
notable absence of public disorders
and industrial conflict"
There has been an enlargement of
social and spiritual responsibility among
the people. the President said. Better
methods of business have resulted from
the stress and strain of the last two
years. Public Improvements have been
carried out on larger scale even than
In normal times and the country is
richer in physical property, newly dis
covered resources and in productive ca
pacity.
Disorders in 10 Countries.
Turning his attention to foreign af-
fairs, the President pointed out that
the economic depression has continued
ana deepeneo in every part of the world
during the last year. Within two wears.
he said. there have been revolutions or
acute social disorders in 10 countries.
embracing more than half the popuia-
tton of the world. He said that 10
countries have been unable to meet
their external obligations and that in
IA countries having one-fourth of the
total world population former monetary
sSanoaros rave been temporarily abari-
doned.
The President insisted that difficulties
In this country have originated In a.
large degree from this world situation
ano that American recuperation "has
oletaceo the necessity of corporation
Dy us with other nations in reasonable
cnort to restore world confidence and
economic stability"
In regard to the Manchurian situa-
tsof1, the President said:
The difficulties In China and Japan
nave given us great concern, not alone
Tor the maintenance of the KELLOGG
Friard pact. but for the maintenance
ol tne treaties TO which we are party
securing the territorial integrity of
Cnina. II is our purpose to assist in
YTGtnQ Solutions I'D.
spirit of those treaties. I shall deal AT
greater length with our foreign relations
N q later message"
Takes Up National Defense.
one OF the first subjects dealt with
py the President in his message was fhe
national defense. He insisted both the
Army and the Navy have been main
Islneo IN high state Of efficiency.
Curtanments In expenditure for these
departments, he said, will be made with
ont reducing existing personnel or i'm
pairing the morale of either establish
merit. He stated definitely, and in a
manner which may be Considered an
answer 10 the critics OF his naval poI-
ICY, tnat ne believed the NAVY should
or expanded TO meet the strength an
tnorized under the naval ltraitstion
treaties He said:
ne agreement between the LEADING
naval powers for a Limitation of nava1
armaments and establishment of their
EeistaRe strength and thus elimination
of competitive building also implies for
ourselves the gradual expansion of the
oenclent categories in our Navy to the
parties provided in those treaties
However, none Of the nations no rfies
to these agreements, is TODAY maintaine
ing the full rate of construction which
tne treaty size Of fleets would ir1ply
Inc President expressed q hope that
IN the future il would be possible Ia
reach international agreements stfll
further limiting the naval strength and
other military strength.
Antitrust Inquiry Advised.
Declaring that the railways present
the President said they Sb~,iId heve
more effective opportunity to reduce
operating costs by proper consolidation.
As tneir rates must be regulated in
pubic interest, SO also apprcyiraate
regulation should be applied to COM
peting services by some authority
The Presient recommended a Con-
gressional inquiry dealing with the
antitrust laws with view TO making
some change in these laws. He added,
iiVNcNeI. 40 Dol 1dvof their repeal.
Such action would open wide the door
to price fixing. monopoly and destruc-
ton Of healthy competition" He said,
however, that attention should be given
20 the industries founded upcn ma
tlonsl resources where destructive COM
petition produces great waste of these
resources and brings great har6Ships,
as In the bituminous coal, oil and
lumber industries.
The Federal Government. the Presi-
dent told the Congress, as an aid to en-
ployu1ent is engaged in the greatest pro-
gram Of public building, harbor food
control, highway, waterway aviation,
merchant and naval ship construction
IN al history. He said that expendi-
lures on these works during the caler-
dar year viii reach about s78o. 900 600
compared with $3.50 600 900 in 1928.
Through this increased constructor.
through the maintenance of fun com