The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-09
The Presidents Message

President Hoover sent to congress Tuesday the
best message since he took office. He recommended
a tax increase and promised to maintain the peace
treaties in the Manchurian crisis.
These two policies are vital Both represent
hopeful Hoover conversion. Until now he has OPP
posed a tax increase and has failed to uphold the
treaties violated by Japan.
Federal measures to cope with the depression de-
pend on higher taxes. World peace depends on
American defense of the treaties. The President
should and doubtless WILL receive the full co-opera-
ton Of congress in these policies.
These two policies do not exhaust his constructive
recommendations. Others include economic improve
ment through extension of federal land banks thaw-
ing Of frozen assets in closed banks creation of home
loan discount banks and of an emergency reconsuc-
ton corporation patterned after the former war
finance corporation essential banking reforms incud-
ing separation of different kinds of banking to safe
guard deposits emergency restriction Of immigration
reorganization of federal administrative departments
for economy and efficiency and armament reduction
With the exception of his unfortunate proposal
for widening the eligibility provisions OF the federal
reserve law his economic and financial program prob
ably will commend itself to congress and the nation
so far as that program goes.
But there is large and growing group in con-
gress and in the country which believes that on top
Of the Hoover program drastic federal measures
are necessary to stop the depression With that group
we agree.
Much larger federal public work projects are es-
senal to provide jobs for part Of the 100000 unem-
poyed and to provide business for closed factories
Direct federal aid to local relief agencies unable to
meet unemployment needs is imperative, Hoover's
statement that he is opposed to any direct or in
direct government dole overlooks the fact that his
administration is now giving generous doles and sub
sides to agriculture and the shipping and aviation
industries.
It overIooks the fact that the local unemployment
relief system, which he praises so highly, is dole
system in which than 10 per cent of the total
dole distributed comes from local governments in
stead Of private charity.
Many of those local governments no longer can
carry that dole load, and the unemployed will not
be fed unless the federal government helps-just
the federal government has given doles in the past,
on Hoover's urgent plea, to millions of other hunger
victims in this country and abroad.
Does are hateful but they are the only thing that
kept the unemployed alive last winter. Does will be
necessary until an enlightened government and in
dustry provide system of stabilized employment and
Of unemployment insurance in place of charity.
There are two other serious flaws in the Hoover
economic program He restricts the tax increase pre-
sumably the higher incomes to a twoyear period,
which is obviously too short time in which to meet
the prospective four-bilon-dolar operating deficit
And he opposes reduction of the high tariff which
is a major cause of the continuing depression.
Finally he evades the prohibition issue completely
and fails to support his Wickersham commissions
recommendation for modification repeal.