Imperial Valley press., 1931-12-08
CONGRESS
RECEIvES
MESSAGE:
President Urges Higher
Taxation For Next Two
Year Period.
URGES CONFIDENCE
Advocates Emergency Aid
To Agriculture And
Business World.
BY RAYMOND CLAPPER
United Press Staff Correspondent

WASHINGTON, Dec. 8. UP
President Hoover today asked the
| people to accept a two-year increase
in taxes and urged congress to form
a national reconstruction finance
| corporation to aid in rehabilitation
of business.
Those two proposals were the cor
| nerStoneS of the Presidents pro-
gram given to congress today in the
most momentous message a chief
executive has delivered since the
war.
The time has come for aggressive.
forward action, the President main
tanned. He expressed confidence in
the countrys ability largely to over
come the depression regardless OF
conditions in other parts of the
world.
All that is needed is to revive con-
fidence, he said, summon courage
and determination, loosen credit
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 re-
! construction program as they af-
feet the vitals of the country's econ-
omic life.
He proposed a temporary tax in
| crease to end July /, 1884 which 1t
! is unosficially estimated, would
amount to almost $1,000,000,000 q
year. Details we're reserved for a
latter time, but Mr.. Hoover gave q
general warning that the country
| must prepare to take on an In
creased emergency burden due to
the sharp declines in tax revenues.
The outstanding credit proposal
in the message was for creation OF
a reconstruction finance corporation
to extend emergency help to bus
mess and agriculture. It's capital
would be raised jointly by the gov
! ernment and private subscription.
Would Create Confidence
Its purpose is that by strength
ening the weak spots to thus liber-
ate the full strength of the nations
resources
Such a corporation, backed by
| possibly a billion dollars, would bp
/ expected to have a strong psyche
| logical effect on the country such
as was felt from the launching of
the recent national credit corpor-
alton.
| This proposal, coupled with the
/ tax increase recommendation, forms
/ the cornerstone of the Presidents
attempt to inspire confidence and
build a sound private and public fis-
cal foundation for economic recov-
, cry.
The first requirement of conf
| dence and of economic recovery is
financial stability of the United
States government" he said. II
| must at this time call attention to
the magnitude of the deficits which
have developed and the resulting
necessity for determined and cour-
ageous policies"
He said there musG be insistent
and determined reduction in gov
erunent expenses and that the de-
ficit must be partially met by bor-
rowing, for an attempt to cover
them by increased taxes would re-
| tard recovery"
He would fix the tax increase SO
as to balance the budget for the
year beginning next July except for
statutory debt retirement. This
would require about 1921 100000. A
net increase in the national debt Of
! S1,7l1 .0000 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 n full.
Mr. Hoover declared le was op-
| posed to general tariff revision.
Such action would disturb In
dustry, business and agriculture" he
said. 1T would proiong depres-
SION ~
He also registered unqualified op-
position to any direct or indirect
government DOLE there were no
specific unemployment relief rec
concentrations though Mr. Hoover
said that through the government
construction program the federal
payroll and veterans aid the fed
eral taxpayer is contributing direct
ly 70 the livelihood of 100000 cit
liens. The Presidents unempIoy-
ment committee, he said. gives as
surance against suffering during
the coming winter
Prohibition was not mentioned IN
the message.
The Hoover program included tho
following additional recommended
tions.
/ Railroads, whose stability was
described as necessary to economic
recovery, should be enabled 10 re-
duce costs by proper consolidation.
and competing services should be
subjected TO rate regulation.
.. Authorization by congress for
further government advances to
federal land banks TO make possg-
bic greater aid to agriculture.
3. Legislation TO enable federal re-
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