Evening star., 1932-10-23

these promises with the actual perform
ance of the body which, under the
constitution, initiates the fiscal policies
OF Government, the House Of Repre-
sentatives.
Despite all this obstruction, propose
to continue the fight for reduction Of
Government expenditures, and II there
is a fresh mandate from the people
there will be no denying my recon-
mendationS.
The Governor involves himself in a
labyrinth Of inaccurate statements In
irving to prove that the Secretary of
the treasury made errors in estimates
of future revenue. He insists we should
have increased taxation two years
earlier than was done. He ignores the
fact that Federal budget estimates are
made in October for the year beginning
the following July. He would appear to
expect that by crystal gazing or by
astrology the Secretary would nave Deen
able to prophesy the revenues year
ahead in the midst OF the greatest
crisis in history, and to nave tnus
anticipated the effect OF every crash IN
the world upon our revenues. l wish
II we're possible for human beings to
predict the action Of a Democratic
House a year or two in advance. II
we had been able to do this, we could
have interpreted the effect on the
revenues and budget Of the actions OF
the last Congress and their disturbances
in the whole economic system ana thelr
foray on the Treasury.
Cites Democratic Protest.
In this particular the Governor
might be interested to know that Ger
tain Democratic leaders in Congress
publicly protested that no taxes should
be imposed at all or that they should
be delayed still another year. and that
we should continue to live on our 1ate
The administration was the nrst 10 IN
sist that the undermined revenues OF
the country should be increased as
fundamental necessity to the mainte-
nance of stability of the United states
Government. The Governor implies
that as the result Of failure to read the
crystal of the future We have jeopar-
died the credit of the Federal Govern
ment. The answer is that the Gov
ernor does not know that only 10 days
ago the Treasury sold 0,OO0,o ,o0O OF
notes at 3 per cent interest. That ooes
not look like a discredited institution;
There is no government IN the worio
financing upon such a commence IN us
stability.
The Governors labored charge that
for some sinister purpose the facts were
misrepresented or concealed from the
neonle is too silly to merit serious con-
sideration. The actual Federal ex-
penditures and receipts are issued to
the public every day in the year at 9:30
o'clock in the morning.
Now I want to address myself to the
constructive policies of my admins
tration and the Republican party and
in addressing myself to this task !
want to address myself to the man VINO
has a Job, to the man who has no )ob
and Is looking for one. to the farmer
and the business man who are in DIM
Guilty. After all, the thing which Is
Of real importance Is not the misinfor-
nation furnished to the Democratic
candidate or the promises of that party
but the actual measures and forces
which we have in motion to restore
Jobs. agriculture and business.
Discusses Emergency Program.
1t has been my fate to have been
born and raised in contact with the
problems that come from distress and
striving to maintain a flreslde ano
home for loved ones. And l can say
without challenge that a large part OF
my life has been spent in contact ano
in efforts to solve human diftlculties.
Therefore l wish to discuss With you
the emergency program which we nave
put into action and propose for over.
coming this crisis, and to compare II
with the Democratic program as MADE
L,,f l,a Ia cf
some suggestions by the Democratic
candidate. In q previous address have
traced the origins Of this depression. !
have spoken Of the forces which dragged
down the prosperity Of our people and
brought suffering, distress and fear into
American homes. The first stage OF the
depression in this country was re-
action from the mania OF speculatlor
and flotation Of 1929. have traced the
measures we initiated to increase EN-
ployment, to hold wages, to assist agrl'
culture, to prevent distress and the
gradual recovery of the country from
the domestic phase year later. have
pictured the dreadful calamity which
then interrupted our recovery through
the tremendous earthquake Wnoe'
origins were in the World war ana lts
aftermath and the strains which II nae
placed upon the nations OF Europe. A
the result of these they collapsed one o,
one. finally eliminating at the END O
September last year, when Great Brit
ain abandoned the gold standard ane
was followed by a score OF other nations
| with financial panicS, overthrown gov
ernments and revolutions.
Foreigners Withdrew Gold.
In other places 1 have discussed thu
method by which this tremendou
world crisis was transmitted to th'
| United States. At the moment deslr'
only to- point out to you the effect. II
the weeks following abandonment o
| the gold standard in England the banl
| failures. measured in deposits, rose u
over $3.50, ,000, 900 per week, and hoard
ing rose to over $100000,000 a week
Foreigners. fearing that even we Nigh
be engulfed, drew out $725 100000 II
gold from us in six weeks.
We met the situation promptly. o.
october 3 a year ago secured from tn
bankers of the country the establish
ment of the National Credit Associa
ton. with half a billion dollars will
which to support the financial situation
On october 6 called meeting of tn
political leaders of both parties and Sc
cured q declaration of unity of nationa
action in the face of national danger.
The ship began to right itself. But
again at the end of November It becam
evident that the forces moving agains
us were more powerful than could b
stopped by these measures. Bank fail
ures and boarding increased, with
thousand other effects in increased un
employment and decreasing farm prices
Face Three Perils.
We were faced with three grea
perils. The first was that through tn
losses and decrease in profits Of bust
ness there was a sharp drop in FEEDERS
tax revenues Of $1,v00, 100000, or near
ly one-half the whole. We were face
with inability to pay our expenses Q
Government except by an increase Il
taxes or alternatively by enormous Dor
rowings.
| Second-The integrity Of the none
tary system was increasingly threatene
by the terrible impact Of foreign gol
withdrawals and our own boarding an
the inflexibility of the Federal Reserv