The Washington times., 1931-10-26
HOOVER To TURN
TO DOMESTIC
PROBLEMS
Visit Here of Premier Grand
Alone Remains to Divert
President From Home Needs
BY WILLIAM c. MURPHY. Jr.

BY WILLIAM c. MURPHY. Jr.
His conferences with Premier
Laval of France out Of the way,
President Hoover plans to devote
most Of his time and energy to
domestic problems between now
and the opening Of Congress on
December z.
save for a brief interlude. Of
international affairs necessitated
by the prospective visit Of Italian
Minister Grand, the affairs Of
the United States will occupy
the attention Of Mr.. Hoover and
his advisors for the coming six
weeks.
Message Important
Mr.. Hoover'S annual message
to Congress this year Is expected
to be one Of the most important
documents of its kind prepared
by an American President in
peacetime.
His recommendations viii be
watched with the keenest inter.
est and subjected to the most
searching scrutiny. not only be-
cause Of their bearing on possible
alienation of the economic de-
preston but also because Of their
political significance for the 1892
presidential campaign
- Faced with . Treasury deficit
almost certain to amount to ST..
100000 by the end Of the
present fiscal year-On top Of -
$1,000, 100000 deficit last year
Mr.. Hoover must attempt to find
some method Of improving the
Governments financial position
without adding unduly to the
burdens of business.
Sales Tax Probable
Recent limitations from off
cial sources tend to confirm the
belief that some form Of tax re-
vision will be propoSed-posSibly
q sales tax. Any proposal for
additional taxes is sure to stir
heated controversy in Congress.
At the same time the Admins
tration is seeking additional rev.
enues to wipe out the huge deficits,
1t is faced with demands for
additional expenditures to allevi.
ate unemployment. The Presi-
dent let it be known some time
ago that he will propose a definite
program Of unemployment relief.
Whether that will go beyond
the creation of the Clifford COM
mission, already set up, has not
been revealed but the expectation
is that Mr.. Hoover has something
additional in mind.
In the field of business and fl
nance, there are the problems of
frozen assets" in the nations
banks and the distressed condi-
ton of the railroads with its re.
percuSSionS in the security and in
vestment markets.
Steps already have been taken
along these lines through the for
nation Of the National Credit
Corporation and the Interstate
Commissions suggestion for a
railroad pool to be built up from
increased freight rates on speci-
fled commodities. However, both
Of these programs require supple
mental legislation to make them
more effective. .
Then there is the Presidents
battle for curtailment of govern.
ment expenditures which has. al
ready brought about condition
which can be described as tense,
between the White House and the
Navy Department. ~. -
Debt Leadership Abandoned
One definite result of the
HOOver-Laval conversations, for
the time being, is believed to be
the elimination Of the United
States from maneuverings for .
possible extension of the mora
forum on war debts and repair
atoms. .r..
That was indicated by the dec
laration that proposals along this
line S, ould originate in Europe,
which is interpreted to mean that
Germany should ask for an ex.
tension on her PREPARATIONS obi.
cations thus precipitating requests
for proportion extensions on
European debts to the United
States. ~ -
.