The Waterbury Democrat., 1932-12-06
By HENRY F. MIssELw1Tz

 United Press Stan Correspondent)
 Washington, Dec 6 6- (CP)- President Hoover sent his final an- nual message to congress to-day, demanding wholesale revision of banking laws, vigorous coopera- tion" with foreign nations in the economic field. and recommending a general manufacturers' sales tax.
 He urged additional salary cuts for government workers and promished a thorough reorganiZa- ton of government departments. The message was strong in tone and mildly encouraging in it's re- view of the economic situation. Statistics indicating progress since July were cited.
 The president touched on for eign war debts and let it be known that he would have Q subsequent communication covering this crisis in detail as soon as present nego- tiations are completed.
 He outlined three definite di- rections" for action to speed re- covery. They are:
 1-Continuation of reduction of all government costs.
 2-Complete reorganization at once of the nations banking sys- tenn.
 3-vigorous and whole-souled cooperation with other govern ments in the economic field.
 He touched. briefly on the budget for 1933-34, which he will outline in a message tomorrow. The pres ident declared the budget twill show proposed reduction in appro- priations below those enacted by the last session of the congress by over $S3O, 1000, ,000."
 He made clear, however, that "these sums in reduction of ap- propriations will be partly offset by an increase of about $250,000,- 900 in uncomfortable items such as increased debt services, etc." mak- ing the estimated saving about s5S0, 900 1000. according to his fig ures.
 The president said he would recommend an extension of the manufacturers excise taxes "tc cover practically all manufactures at uniform rate, except necessary food and possibly some grades of clothing"
 He pointed out that his budget message would recommend an ad- ditional II per cent pay cut on all salaries above $1,000 a year. The result, with the present so-called payless furlough system, would he an average "14.S per cent reduc- tion in pay to those earning more than $1,000."
 He also intends in the budget message, he said, to recommend measures to eliminate certain pay ments in the veterans services. and added many abuses have grown up from ill-considered leg islation. They should be elimi- nated."
 The president announced he in tended to take advantage of his newly acquired power for wide spread reorganization of the fed eral government, given in the last session of congress. He announced he, would issue the necessary ex- ecutive orders within a few days grouping or consolidating over 50 executive and administrative agen- cies."
 Unless congress rejects these f 0 h ming recommendation within 60 days, they become law.
 The president amplified his de- mand for complete revision of the banking laws by declaring that "the shocks to our economic sys- tenn have undoubtedly multiplied by the weakness of our financial system."
 He pointed out that in Great Britain there has not been a sim gle bank failure," but that bank failures in the United States "rose in 1881 to 10A per cent of all the banks"
 MT Hoover emphasized his con- tention that the nation's' economic ills were traceable mainly to the European collapse. He said:
 ''The unparalleled worldwide economic depression has continued through the year. Due to the Eu- ropean collapse, the situation de- veioped during the last fall and winter into a series of most acute crises. The unprecedented emer-. gency measures enacted and poli- cies adopted undoubtedly saved the country from economic disas- ter. .. If we are to secure rapid and assured recovery and protec- tion for the future, we must CO., operate with foreign nations in many measures"
 The president touched briefly on the war debts crisis:
 ',fhe European governments, ob- ligated to us in war debts, have re- quested that there should be sts- pension of payments due the Unit ed States on December 15 next, to be accompanied by exchange of views upon this debt question.
 "Our government has informed them that we do not approve of suspension of the December 1b payments. have stated that wolfld recommend to the congress