Imperial Valley press., 1932-12-06
HOOVER ASKS
REVISION FOR.
BANKING LAWS
Annual Message To Congress
Recommends Numerous Meas
ures To Bring Economy.
FOREIGN DEBTS MENTIONED
President Urges Manufacturers
Sales Tax To Aid In Balancing
Federal Budget.
By HENRY F. MISSELWITZ
United Press Staff Correspondent

ny iLlSh1 II. mloSELWlIZ
United Press Staff Correspondent
WASHINGTON, Dec. 6-Presi-
dent Hoover in his final annual
message to congress today de-
manded wholesale revision of the
banking laws and vigorous cooper
atom with foreign nations as the
basis for restoration of confidence
and return of economic stability.
Mr.. Hoover recommended a
broadened uniform general manu-
facturers sales tax as a means of
balancing the budget.
He urged additional salary cuts
for government workers and pro-
missed thorough reorganization of
government departments.
The message was vigorous in tone
and mildly encouraging in its out
look on the economic situation. Sta
tistics indicating progress since
July were cited.
The President touched on for
eign war debts and let it be known
he would have subsequent COM
munication covering this crisis in
detail as soon as present negotia-
tlonS are completed.
He outlined three definite direc-
tions" for action to speed recovery.
They are:
l. Continuation of reduction of
all government costs.
2. Complete reorganization at once
of the nations banking system.
g. Vigorous and whole-Souled CO.
operation with other governments
in the economic field.
Touching briefly on the budget
for 1933-34, which he will outline
in a message tomorrow the Presi-
dent declared the budget will >how
proposed reduction in appropria-
tionS below those enacted by the
last session of the congress by over
$3.50 000,0 ,0O0."
He made clear, however, that
"these sums in reduction of appro-
priations will be partially offset by
an increased debt service, ETC."
making the estimated saving about
$580000, 900, according to his fig
ures.
The President said he would re-
commend an extension of the man.
ufacturers' excise taxes ito cover
practically all manufacturers at a
uniform rate, except necessary food
and possibly some grades of cloth
ing.'
In government economy, he
pointed out that his budget message
would recommend an additional IL
per cent pay cut on all salaries
above $1,000 a year. The result,
with the present so-called payless
furlough system, would be an av-
erage "14.8 per cent reduction 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 in-considered legis-
lation. They should be eliminated"
The President announced he in
tended to take advantage of his
newly acquired power for wide
spread reorganization of the federal
government, given in the last ses-
sion of congress. He announced he
would issue the necessary executive
orders within few days grouping
or consolidating over so executive
and administrative agencies"
This has long been q project near
his heart. Unless congress rejects
these forthcoming recommendations
within so 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 system have
undoubtedly multiplied by the
weakness of our financial system"
He pointed out that in Great Brit
ain there has not been single
bank failure" but that Bank fail
ures in the United States rose in
1881 to 1012 per cent of all the
banks"