The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-31


Foreign countries, swayed
by fear of a possibly unbal-
anced budget, had started IAN
entirely unjustifed run upon
the American dollar" he said,
as he spoke in measured
solemnity to the attentive
senate.
The Presidents descent on the
senate was made known only briefly
before he arrived, rushing by auto
mobile from the White House.
The senate had just passed the
Connally amendment increasing in
come taxes, and committee mac
heard from Treasurer Secretary
ogden L. Mills an advocacy of ex-
tension of excise taxes to meet q
deficit which the tax bill failed &c
cover.
The administration recommended
tions as related to the finance COM
mittee by Mills included sponsorship
of the sales tax idea and the higher
income rates OF the Connally
amendment.
Tells Of New Emergency
Mills said, however, that if the
senate did not wish to adopt the
sales tax amendment, it could raise
the necessary revenue through the
Connally amendment, a gasoline tax
of cent per gallon and restoration
of the exemption on admissions to
10 cents. These provisions without
the sales tax. Mills estimated, would
Weld "a total of SITS. 600 ,00O-close
to the estimated new deficiency oil
$685. 100000.
AN emergency" has developed in
the last few days. said Mr.. Hoover
and he felt it his duty to advise the
senate thereof.
Then he pictured a drab view OF
the nations affairs-doubt and
anxiety rampant over delays in con-
gress; foreign countries, realizing
that unbalanced budgets mark the
road to ruin" foolishly exaggerating
the effect of the present situation;
diminished business activity here
and a growing unwarranted run on
the dollar from abroad
The President voiced his sym
pathetic realization Of the task con-
fronting congress and the sacrifices
with which the nation is confronted.
Not for General Sales Tax
Correction Of the situation i'm
mediately is imperative, he said.
Congress must undertake:
/. Drastic reduction Of expendi-
lures.
2. Passage of adequate revenue
legislation.
8. Passage of adequate relief
legislation.
Then he swung into the tax prob
lem and advocated the general man
ufacturers' tax for limited period
and counselled the senate to make
wider economies than heretofore
planned.
Il have not and do favor gen.
eral sales tax" Mr.. Hoover said.
1T has not been proposed by the
treasury. This is not, however, to
be confused with an extension Of
the special manufacturers excise
taxes to a general manufacturers
excise tax with exemptions Of food
and clothing.
This is an entirely different tax
from a so-called sales tax and can
not by pyramided.
Committee Against 1t
Even this general manufacturers
excise tax has not been proposed
by the treasury, although at the
time such a tax was unanimously
recommended by the ways and
means committee by the house, rep
resenting both political parties and
their leaders in the house Of rep
resentatives. the secretary Of the
treasury accepted it in the hope
that immediate passage of the bill
would result.
In order, however. TO solve our
problem and give assurance to the
country and the world that we are
ready to meet our emergencies at
any sacrifice. I now favor an ex-
tension for a limited period Of the
many special excise taxes to more
general manufacturers excise tax.
and will support the congress If It
should be adopted
Whether this be the course or
not some future emergency tax
source should be incorporated in the
pending bill"
Ten minutes after Mr.. Hoover