Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-06

President Also Urges Sales
Tax in Message to
Congress.
Continued From First Page.)

banking has failed to meet this great
emergency" he said. "It can be said
without question of doubt that our
losses and distress have been greatly
augmented by its wholly inadequate
organization"
Failures Unnecessary.
The President pointed out that bank
failures rose in 1881 to 1012 per cent
of all the banks as compared to 112
per cent failures of all other types OF
enterprise. He added that since jan
uary /, 1880, this country has had
4,665 banks suspend, with $4,000, 000,-
900 in deposits.
That this failure to function is I'M
necessary and is the fault OF our par
ticular system" he continued, lis plain
~ indicated by the fact that In Great
Britain, where the economic mechanism
has suffered far greater shocks than
our own, there has not been a single
bank failure during the depression.
Again, in Canada, where the situation
has been in large degree identical with
our own, there have not been substan-
tial bank failures"
With regard to the foreign debts owed
this Government the President said the
United States Government had informed
the debtor nations that it did not ap-
prove their requests for suspension OF
the debt payments due December Is.
ct have stated" said the President
that I would recommend to the Con-
gress methods to overcome temporary
exchange difficulties in connection with
this payment from nations where 1t is
necessary"
He said nothing about recommending
to Congress the creation of a new
agency to discuss the revision Of the
foreign debts, as requested by the for
eign nations. The President, in his re-
cent conferences with President-elect
Roosevelt and the Republican and
Democratic leaders Of Congress, found
no encouragement to his proposal to set
up such an agency.
Considered as Whole.
The discussion OF the foreign debts
by the President was part of his gen.
eral treatment of the subject of eco
nomic cooperation with other nations
He linked it with the question of dis
ornaments and with the coming Inter
national Economic Conference Here
he said, are three great fields of inter
national ACCOMPLISHMENTS, debt;
and the Economic Conference-"whicf
must be considered not in part, but a.
a whole. They are of most vital inter
est TO our people. Within them there
are not only grave dangers if we fail ir
right action, but there also lie great
opportunities for good if we succeed"
THE welfare Of our people is de-
pendent upon successful issue of thu
great causes of world peace. world dis.
armament and organized world recov.
| cry. Nor is it too much to say that TO-
day as never before the welfare of man
kind and the preservation of civiliZa.
ton depend upon our solution Of thest
| questions. Such solutions cannot bt
attained except by honest friendship
by adherence to agreements entered
upon until mutually revised and by CO.
operation among nations in a deter.
mination to find solutions which will bt
mutually beneficial"
The pictures painted by the Presiden
of the conditions in this country wer,
not all black. He held cut great hops
| for recovery, described the steps which
already have been taken to relieve con
ditions, including the setting up of thu
Reconstruction Finance CORPORATION ant
the great work Of sterilization it ha,
already accomplished Despite the de
preston, with its accompanying un
employment and restitution, the NOR
tally rate in this country, the Presi
| dent said, Is lower both for the who'll
people and for infants in 1882 than /
was in 1893, the last year of the ''grea
| prosperity" He showed, too, that tn
industrial situation and employment ha
improved materially since last JULY
with more production, more employ
ment, more shipments of freight, NOR
sales, greater value of exports and i'm
ports, greater consumption of electri
power and more building contracts.
IncalcuIabIe Value.
THE measures and policies" said tn
President, which have procured thi
! turn toward recovery should be con
| tinued until the depression Is passed
and then the emergency agencies shoulC
be promptly iquidated. The expansion
of credit facilities by the Federal Re
serve System and the Reconstruction
Finance Corporation has been Of meal
culable value"
The aid given by the Federal Gov
eminent to the unemployed and to agri
culture, the President said, had beer
very great. In the last four fiscal years
including the present, he pointed out, &
total of $2.358, 430 900 had been pu
out by the Government for publ,
works and a total of S1.177.500. 900 fo
agricultural relief and financial loans
When he took up the question of {