Evening star., 1932-05-31
HOOVER, IN PERSON,
URGES SALES TAX
Appears Before Senate, Cit.
ing Emergency Requiring
Quick Action.
Continued From First Page.)

Continued From First Pase)
special excise taxes to a more general
manufacturers excise tax and will sup
port the Congress If it should be
adopted
whether this be the course or not,
some further emergency tax source
should be incorporated in the pending
bill"
President Hoover, after he had been
briefly introduced to the Senate by
Vice President Curtis, who announced
simply, The President of the United
States" told the Senate.
"An emergency has developed in the
last few days which 1t Is my duty to
lay before the Senate"
Delays Raise Doubt.
He called attention to the continued
downward movement In the economic
life Of the country and said that it has
been accelerated IN the last few days
and that it relates in part definitely to
the financial program Of the Govern
ment.
Long continued delays in the passage
of legislation providing for reduction in
governmental expenditures and addi-
tional revenues designed to balance the
budget have been. in part responsible
for raising doubt as to the ability of the
American Government to meet its re-
sponsibilties.
These fears and doubts have been
foolishly exaggerated In foreign coun-
tries" said the President They know
from bitter experience that the course
of unbalanced budgets Is the road to
ruin. They do not realize that, slow
as our processes may be, We are de-
termined and have the resources to
place the finances of the United States
on an unsssailable basis"
Run on Dollar Created.
The immediate result of the doubt
created by delay and by proposals for
greatly increased governmental ex-
penditures has been to create an en-
tirely unjustified run upon the dollar
from foreign countries, the President
said
Today" said the President, "de-
spite our national wealth and resources
and unparalleled gold reserves, our dol
lar stands at discount in the markets
of the world
This can be and must be immedi-
ately corrected or the reaction upon
our economic situation will be such
as TO cause great losses to our people
and will still further retard recovery"
Sympathizes With Congress.
The President expressed his SYM
pathy with Congress in its present dif-
ficulties. He said that the decrease in
revenues due to the depression by up
ward of sl,70O 900, 600 and the neces-
sity to reduce Government expenditures
made sacrifice necessary for many
groups and sections.
The time has come when We must
all make sacrifices to some parts OF our
particular views and bring these dam
gers and degenerations to halt by ex-
peditious action.
Turning to the matter of tax legisla-
ton, the President said: We must
face the plain and unpalatable fact that
due to the degeneration of the economic
situation during the past month, the
estimates of fertility of taxes which
have been made from time to time,
Sed upon the then current prospect
of business, must be readjusted to take
account of the decreasing business ac-
tivity and shrinking values.
Il recognize the complaint that esti-
mates of the taxes required and reduc-
tions of expenses needed have been re-
peatedly increased, but on the other
hand 1t should be borne in mind that
if tax and economy legislation recon-
mended from time to time since last
December had been promptly enacted
there would have been less degeneration
and stagnation in the country
The President said that it may we'll
be that the income taxes have already
been raised to the point OF diminishing
rot,Jrrc throyoh oUo{doncA u,bich will
ensue by the use of tax-exempt secufi-
ties, and are already SO high as to ap-
proach the danger point in retardation
of enterprise.
1T is advisable that more relief
should be given to the earned income 4"
Discusses Relief.
Discussing the relief problem, the
President reiterated his proposals for
loans to the States to relieve distress
and broadening of the operations Of the
Reconstruction Finance Corporation. He
added:
II have not been able to favor the
expansion of the public works beyond
the program already proposed In the
budget"
He pointed out that since the begin
ming of the depression, the Federal
Government will have expended in ex-
cess Of 100000 in construction
and maintenance of one kind or an
other as against q normal program of
$3.50 ,000,0 for a similar period. The
President said his program avoids
drain upon the tax payer while the
public We ts program would lay bur-
den upor. MIN.
In conclusion, the President said:
"The natural wealth Of this country
is unimpaired and the inherent abilities
of our people to meet their problems
are being restrained by failure of the
Government to act. Time is of the
essence.
In your hands at this moment is the
answer to the question whether democ-
racy has the capacity to act speedily
enough to save itself In emergency.
The Nation urgently needs unity. 1t
needs solidarity before the world in
demonstrating that America has the
courage to look its difnculties in the
face and the capacity and resolution to
meet them"
Senate Galleries Filled.
Despite the fact that the Presidents
visit to the Senate was announced a
scant half hour before he appeared,
word spread ABOUT the CapltOl, ana
when he entered the Chamber, there
was a full attendance OF the Senate
and scores of members of the House
had crowded in. The galleries were
filled and the corridors outside banked
with people striving to gain admission.
As the President entered the Senate
chamber the whole assemblage rose.
There was no applause. and as soon
as the President accompanied by the
Vice President, had taken his place on
the rostrum the Senators resumed their
seats
The President read his message in a
conversational tone of voice which
scarcely carried to the far corners Of
S. -
Each Dollar Ia