Evening star., 1932-05-31
Text of Hoover's Speech

dollar to the world that We are
ready to meet our emergencies at
any sacrifice, have now come to
favor an extension for q limited Pc
riod Of the many special excise taxes
to more general manufacturers
excise tax and will support the Con-
gress if it should be adopted.
Whether this be the course or not,
some further emergency tax sources
should be incorporated in the pend
ing bill.
Our third problem is that of re-
lief. The sharp degeneration has
its many reflexes in distress and
hardship upon our people. hold
that the maintenance of the sense OF
individual and personal RESPONSE
bility Of men to their neighborS and
the proper separation of functions Of
the Federal and local Governments
requires the maintenance of the
fundamental principle that the OBJ
legation of distress rests upon the
indivioLls, upon the communities
and upon the States. In order,
however, that there may be no fall
ure on the part of any State to meet
its obligations in this direction !
have, after consultation with some
of the party leaders on both sides,
favored authorization to the Recon-
struction Finance Cooperation TO
loan up to $500, ,000, 900 to State gov
ernments where they are unable to
finance themselves In provision OF
relief to distress.
Such loans should be made by
purchase of State bonds by the cor
poratien, but where States are un-
able to issue bonds then loans should
be made upon application OF state
authorities and II they are not
regularized by the issuance OF bonds
within & period of IL to IL months
they should become a charge upon
the Federal aid funds to which such
States may be entitled.
Would Increase Powers.
in order to aid unemployment and
to avoid WastAful axparSion of pub
lie works have favored an authority
to the Reconstruction Corporation
to increase its issues of its securities
to the maximum Of $4,000, 100000
in order that 1t may extend It's
services both in aid to employment
and agriculture on a wide scale.
Under the methods proposed the
corporation Is to be ta) authorized
to buy bonds from political sub
divisions or public bodies to aid in
construction Of income producing
or self -liquidating projects; (b) to
make loans to establish enterprise
upon adequate security, for advance
ment of sound projects that will in
crease employment, but safeguarded
bv requirement that some portion
OF outside capital Is also provided
tc) to divert a portion Of the unex-
pended authorizations of agricul-
tural loans through the Secretary
OF Agriculture to the finance eX-
ports of agricultural product; I'D
to make loans to institutions upon
security OF agricultural commodities
to assure the carrying of normal
stocks of these commodities and
thus by stabiliAng their loan value
to steady their price levels; (e) to
make loans to the Federal Farm
Board to enable extension of finance
OF farm co-operatives.
I have not been able to favor the
expansion of public works beyond
the program already proposed in the
budget. have for many years ad-
vocated speeding up of public works
as relief to unemployment in times
of depression. Since the beginning
of this depression, in consonarce
with this view, the Federal Govern
ment will have expended in excess
of 81 500, 900 900 in construction and
maintenance of one kind or another
as against a normal program of per-
haps $3.50 900 900 for a similar period.
The budget for next year calls for
over S55o,000 600, or double our
usual outlay. If We shall now in
crease these programs We shall need
further. We have already forced
cation with any regard to the tax
payer and the avoidance of sheer
waste. 1t is not my desire on this oc-
casion to argue the comparative
merits Of extending such a program
and that of financing an even larger
program OF employment on produc-
tive works through the Reconstruct
tien Finance Corporation.
We are indeed all desirous of serv-
ing our fellow citizens who are in
difficulty and We must serve them
in such a fashion that we do not
increase the ranks of unemployed.
I may emphasize that this alterna-
tive program avoids drain upon the
taxpayer and, above all, II we are
to balance our budget and balance
1t in such fashion that our people
and the world may know it is bal
anced. we cannot make further ap-
preparations in any direction beyond
the amounts now before the Con-
gress.
Spirit Of HeIpfulness.
I am confident that If the Con-
gress could find in these suggestions
which come from members of both
parties ground for adjustment Of
legislation on those dominant par
ticulars and could bring it into i'm
mediate action, it would yield not
only relief to the country, but would
re-eStablish that confidence which
we SO Sorely need.
The natural wealth Of this country
Is unimpaired and the inherent abil-
tiles of our people to meet their
problems are being restrained by
failure of the Government to act.
Time is of the essence. Every day,s
delay makes new wounds and ex-
tends them. I come before you in
sympathy with the difficulties which
the problem presents and in a sin
cere spirit of helpfulness. I ask of
you to accept such a basis of practi-
cal adjustment essential to the well
fare of our people. In your hands
at this moment is the answer to the
question whether democracy has the
capacity to act speedily enough to
save itself in emergency. The Ma
ton urgently needs unity. It needs
solidarity before the world In demon-
strating that America has the eeur-
age to look its difficulties in the face
and the capacity and resolution to
meet them.