davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1932-12-06

ployment, whereas further undue
expansion of Federal public works
is but a burden upon the future.
The Federal construction pro-
gram thus limited to commit
ments and work in progress
under the proposed appropria-
tions contemplates expenditures
for the next fiscal year, includ-
ing naval and other vessel con-
struction, as well as other forms
of public works and maintenance,
of total of SAP, ,769 900, as COM
pared with $717,262 900 for the
present year.
The expenditure on such items
over the four years ending June
80 next will amount to $780,
100000, or an amount Of con-
struction work eight times as
great as the cost of the Panama
Canal and, except for completion
of certain long-view projects,
places the Nation in many direc-
tions well ahead of it's require
mentS for some years to come. A
normal program of about $780,.
100000 per annum should here
after provide for the country's
necessities and will permit sub
Stantial future reduction in Fed
eral expenditures.
I recommend that the furlough
The Washington times., 1932-12-06
Reduction of GoUernm entail Expenses
Necessary for u. S. Economic Recover,

Continued constructive policies
promoting the economic recovery
of the country must be the para
mount duty of the Government.
The result of the agencies we
have created and the policies we
have pursued has been to but
treSS our whole domestic finan.
cial structure and greatly to re-
store credit facilities. But prog
reSS in recovery requires another
element as well-that is fully re-
stored confidence in the future.
Institutions and men may have
resources and credit but unless
they have confidence progress is
halting and insecure.
There are three definite direc-
tions in which action by the Gov
ernment at once can contribute
to strengthen further the forces
of recovery by strengthening of
confidence. They are the ncces-
Sary foundations to any other
action, and their accomplishment
would at once promote employ
ment and increase prices.
The first of these directions Of
action is the continuing reduction
of all Government expenditures,
whether national, State, or local.
The difficulties of the country
demand undiminished efforts to-
ward economy in government in
every direction.
Embraced in this problem is
The Washington times., 1932-12-06

the unquestioned balancing of the
Federal budget. That is the first
necessity of national stability and
is the foundation of further-recov-
cry. 1t must be balanced in an
absolutely safe and sure manner
if full confidence is to be in.
Spired.
The second direction for action
is the complete reorganization at
once of our banking system. The
shocks to our economic life have
undoubtedly been multiplied by
the weakness of this system, and
until they are remedied recovery
will be greatly hampered.
The third direction for imme-
diate action is vigorous and whole
Souled cooperation with other gov
ernmentS in the economic field.
That our major difficulties find
their origins in the economic
weakness of foreign nations re-
quireS no demonstration.
The first need today is strength
ening of commodity prices. That
can not be permanently accom-
pliShed by artificialities. It must
be accomplished by expansion in
consumption of goods through the
return of stability and confidence
in the world at large and that in
turn can not be fully accomplish
ed without cooperation with other
nations
The Washington times., 1932-12-06

system installed last year be con-
tinued not only because of the
economy produced but because,
being tantamount to the "five-day
week." it sets an example which
should be followed by the country
and because it embraces within
it's workings the spread work"
principle and thus serves to
maintain number of public
servants who would otherwise be
deprived of all income.
I feel, however, in view of the
present economic situation and
the decrease in the cost of living
by over 20 per cent, that some
further sacrifice should be made
by salaried officials of the
Government over and above the
8 1-3 per cent reduction under
the furlough system.
I will recommend that after
exempting the first $1,000 of
salary there should be temporary
reduction for one year of II per
cent of that part of all Govern
ment salaries in excess of the
$1,000 exemption, the result of
which, combined with the fur
Tough system, will average about
14.8 per cent reduction in pay
to those earning more than
The Washington times., 1932-12-06
Government Should Act As Regulatory
A gent, Not Tyrant, in Economic Affairs

We have around us numerous
such experiences, no one of which
can be found to have justified it.
self in cases where the people
as a whole have met forces be-
yond their control, such as those
of the Great War and this great
depression. where the full powers
of the Federal Government must
be exerted to protect the people.
But even these must be limited
to an emergency sense and must
be promptly ended when these
dangers are overcome.
With the free development of
science and the consequent multi
tude of inventions, some of which
are absolutely revolutionary in
our national life, the Government
must not only stimulate the social
and economic responsibility of in
dividuals and private institutions
The Washington times., 1932-12-06

have not been substantial bank
failures.
The creation of the Reconstruc-
ton Finance Corporation and the
amendments to the Federal Re
serve act served to defend the
nation in a great crisis. They
are not remedies; they are relief.
It is inconceivable that the Re
construction Corporation, which
has extended aid to nearly 5000
institutions and is manifestly but
a temporary device, can go on
indefinitely.
It is today a matter of salts
faction that the rate Of bank
failures, of boarding, and the
demands upon the Reconstruction
Corporation have greatly lessened.
The acute phases of the crisis
have obviously passed and the
time has now come when this
national danger and this failure
to respond to national necessities
must be ended and the measures
to end them can be safely under
taken. Methods of reform have
been exhaustively examined.
There is no reason now why solu-
tion should not be found at the
present session of the Congress.
Initiation Of currency or gov
ernmental conduct of banking
can have no part in these reforms.
The Government must abide with
in the field of constructive organi-
zation. regulation, and the en-
forcement of safe practices only.
Parallel with reform in the
banking laws must be changes in
the Federal Farm Loan banking
system and in the Joint Stock
Land Banks. Some Of these
changes should be directed to
permanent improvement and some
to emergency aid to our people
where they wish to fight to save
their farms and homes.
I wish again to emphasize this
view-that these widespread bank
ing reforms are a national neces-
sity and are the first requisites
for further recovery in agricul-
ture and business. They should
have immediate consideration as
steps greatly needed to further re.
COVerV
The Washington times., 1932-12-06
Inadequate U. S. Banking System Blamed
For Failure to Meet COuntrv's Distress

The second step, of course, re-
mains that after these various
bureaus and agencies are placed
cheek by jowl into such groups.
the administrative officers in
charge of the groups shall elimin-
ate their overlap and still fur
ther consolidate these activities.
Therein lie large economies.
The Congress must be warned
that host of interested persons
inside and outside the Govern.
ment whose vision is concen.
trated on some particular func.
tion will at once protest against
these proposals. These same sorts
of activities have prevented re-
organization of the Government
for over a quarter of a century.
They must me disregarded if the
task is to be accomplished.
The basis Of every other and
every further effort toward re.
covery is to reorganize at once
our banking system. The shocks
to our economic system have un-
doubtedly multiplied by the weak.
ness of our financial system.
first called attention of the Con.
gress in 1929 to this condition,
and I have INCREASINGLY recon-
The Washington times., 1932-12-06
COMPLETE TEXT OF PRESIDENTS MESSAGE TO CONGRES
Salient Passages From
Presidents Message

"In the provision against distress during the winter
the great private agencies of the country have been
modified again. the generosity of the people has again
into evidence The provisions made for loans from
the Reconstruction Finance Corporation to States that
have exhausted their guarantee that there
should be no hunger suffering from cold
cat the last session. the Congress responded to my
request for authority reorganize the Government
partments Executive orders issued re-
qured to be transmitted to the Congress while in
sion and do not become effective until after 60 calendar
days after such transmission unless the Congress shall
sooner approve.
~ shall issue such executive orders within few days
grouping consolidating over so executive and admins
trative agencies, including large number of commits
sons and independent agencies.
Continued constructive policies promoting the eco
nomic recovery of the country must be the paramount
duty of the Government.
'The executive budget will show proposed reductions
in appropriations of $830000000 below those enacted by
the last Congress session. These will be partially
offset by increase of about $250OOO,OOO in uncon
trollable items.
"The creation of the Reconstruction Finance Corpora
tOn and the amendments to the Reserve Act served
defend the nation in great crisis. They not
remedies; they relief 1t is inconcevable that the
Reconstruction Corporation go indefinitely. ~
'Paralel with reform in the banking laws must be
changes in the Federal Farm Loan banking system and
the Joint Stock Land Banks. These widespread banking
reforms national necessity and the first requ-
sites for further recovery in agriculture and business
The Washington times., 1932-12-06
FARMERS SHOP
FOR HOLIDAY |

Farmers and residents of small
er communities in a radius of 35
miles to the National Capital, al
ways early shoppers, are respond
ing to the early holiday offerings
in greater numbers than ever this
year, according to Edward D.
Shaw, secretary of the Merchants
and Manufacturers Association.
A survey of the downtown
stores, Shaw said, shows that the
farmers and their families were
in the stores with their Christmas
lists before the residents of the
city. They realize, he said, the
advantage of making selections
from complete stocks and when
the clerks are under less pressure
At the tourist camp today it
was said that only a few of the
farmers were quartered there, but
that the entire number was ex-
pected by night. It was thought
that the cavalcade might have
broken down on the way. The
Nebraska Farmers Union is the
nucleus of the group but other
farm organizations are repre-
Sented.
The hall of Typographical
Temple was opened for the farm
erS present. 1t was said, however,
that a few had arrived early TO-
day to hold a short meeting and
had then adjourned. The prin-
cipal sessions begin tomorrow.
The Washington times., 1932-12-06
INADEQUATE j. s. BANK SYSTEM
BLAMED FOR FAILURE TO
COPE WITH THE CRISIS

tenn itself, which is so organized,
or so lacking in organization,
that in an emergency its very
mechanism jeopardizes or para.
lyzes the action of sound banks
and it's instability is responsible
for periodic dangers to our whole
economic system.
Bank failures rose in 1881 to
101a per cent of all the banks as
compared to 112 per cent Of the
failures of all other types Of en-.
terprise. Since January l, 1880,
we have had 1895 banks suspend,
with $3,300,000,000 in deposits.
Partly from fears and drains
from abroad, partly from these
failures themselves (Which indeed
often caused closing OF sound
bankS), we have witnessed hoard
ing of currency to an enormous
sum, rising during the height OF
the crisis to over 81 SOC, ,O0O, 600.
The results from interreaction Of
cause and effect have expressed
themselves in strangulation Of
credit which at times has almost
stifled the Nations business and
agriculture.
The losses, suffering and TRACE
dies of our people are incalcu-
liable. Not alone do they lie in
the losses of savings to millions
of homes, injury by deprival of
working capital to thousands Of
small businesses, but also, in the
frantic pressure to recall loans to
meet pressures Of boarding and
in liquidation Of failed banks,
millions of other people have
suffered in the loss of their homes
and farms, businesses have been
ruined, unemployment increased,
and farmers prices diminished.
That this failure to function is
unnecessary and is the fault Of
our particular system is plainly
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
The Washington times., 1932-12-06

ciples which must dominate the
solution of problems now pressing
upon the nation. Legislation in
response to national needs will be
effective only if every such act
conforms to a complete philosophy
Of the peoples purposes and des-
tiny.
Ours is a distinctive govern
ment with a unique history and
background, consciously dedicated
to specific ideals of liberty and to
a faith in the inviolable sanctity
of the individual human spirit.
Furthermore, the continued exist
ence and adequate functioning of
our government in preservation
OF ordered liberty nd stimulation
OF progress depends upon the
maintenance of State, local, insti-
tutional, and individual sense of
responsibility.
We have builded a system of in.
d1vldualism peculiarly our own
which must not be forgotten in
any governmental acts, for from
1t have grown greater accomplish
ments than those of any other
nation.
On the social and economic
sides. the background of our
American system and the motiva-
tion Of progress is essentially that
we should allow free play of social
and economic forces as far as will
not limit equality Of opportunity
and as will at the same time
The Washington times., 1932-12-06

Speeding up of Federal public
works during the past four years
as an aid to employment has
advanced many types of such
improvements to the point where
further expansion can not be
justified in their usefulness to
the Government or the people.
AS an aid to unemployment
we should beyond the normal con-
structive programs substitute re-
productive or So-called self
liquidating works. Loans for
such purposes have been provided
for through the Reconstruction
Finance Corporation.
This change in character of
projects directly relieves the tax
payer and is capable of expansion
into a larger field than the direct
Federal works. The reproductive
works constitute an addition to
national wealth and to future EN-.
The Washington times., 1932-12-06
Debts, Arms and Trade the Three Great
Foreign Problems the Country Faces

requested that there should be Sus-
pension of payments due the
United States on Decembr Is
next. to be accompanied by ex,
change of views upon this debt
question.
Our Government has informed
them that we do not approve of
suspension of the December IS
payments. I have stated that
would recommend to the Congress
methods to overcome temporary
exchange difficulties in connec.
ton with this payment from ma
tionS where it may be necessary
In the meantime I wish to re
iterate that here are three great
fields of international action
which must be considered not in
part but as whole. They are
of most vital interest to our peo
pie. Within them there are not
only grave dangers if we fail in
right action but there also lie
immense opportunities for good il
we shall succeed. Within success
there lie major remedies for our
economic distress and major prog
ress in stability and security tc
every fireside in our country.
The welfare of our people is
dependent upon successful issue
of the great causes of world
peace, world disarmament, and
organized world recovery.
Nor is it too much to say that
today as never before the welfare
OF mankind and the preservation
OF civilization depend upon our
solution of these questions. Such
solutions can not be attained ex
cept by honest friendship. by
adherence to agreements entered
upon until mutually revised and
by cooperation amongst nations
in determination to find solu.
tions which will be mutually bene.
ficial.
The Washington times., 1932-12-06

Our major difficulties during
the past two years find their orr
gins in the shocks from economic
collapse abroad which in turn are
the aftermath of the Great War.
If we are to secure rapid and as
sured recovery and protection for
the future we must cooperate with
foreign nations in many meas
ureS.
We have actively engaged in a
World Disarmament Conference
where, with success, we should re-
duce our own tax burdens and the
tax burdens of other major ma
tions.
We should increase political
stability of the world. We should
lessen the danger of war by in
creasing defensive powers and de-
creasing offensive powers Of ma
tions. We would thus open new
vistas of economic expansion for
the world.
We are participating in the
formulation of a World Economic
Conference, successful results
from which would contribute
much to advance in agricultural
prices, employment, and business.
Currency depreciation and cor
related forces have contributed
greatly to decrease in price levels.
Moreover, from these origins rise
most of the destructive trade bar
riers now stifling the commerce of
the world.
We could by successful action
increase security and expand
trade through stability in interna
tional exchange and monetary
values. BY such action world con-
fidence could be restored. It
would bring courage and stability,
which will reflect into every home
in our land.
The European governments, OBJ
llgated to us in war debts, have
The Washington times., 1932-12-06
Hoover Sales Tax Plea
Praised at Capitol

have failed to provide anticipated
revenue.
Representative Smell of New
York, Republican House leader,
said:
"The outstanding recon-
mendatiOn of this message is
changes in the fundamental
banking laws of the country.
Experience of the last three
years demonstrates it is needed.
'If Congress follows his econ
Omy recommendations the peO-
pie will get what they want.
II am in entire accord with
his position on a limited manu-
facturerS sales tax. We ought
to have passed it last year"
The Washington times., 1932-12-06
Reforms Recommended in Trust Laws,
Power, TranSp Ortation, Bankruptcy

I have placed various legislative
needs before the Congress in pre-
vious messages, and these views
require no amplification on this
occasion.
I have urged the need for re
form in our transportation and
power regulation. in the anti
trust laws as applied to our ma
tional resource industries. western
range conservation, extension OF
Federal aid to child-health serv,
ices, membership in the World
Court. the ratification of the
Great Lake-St. Lawrence Seaway
Treaty. revision of the bankruptcy
acts, revision of Federal court
procedure, and many other press
ing problems.
These and other special sub
jectS I shall where necessary deal
with by special communications
to the Congress.
The activities of our Govern.
ment are so great, when com
bined with the emergency activi
ties which have arisen out of the
world crisis. that even the brief
est review of them would render
the annual message unduly long
I shall therefore. avail myself OF
the fact that every detail of the
Government is covered in the re
ports to the Congress by each OF
the departments and agencies OF
the Government.
1t seems to me appropriate upon
this occasion to make certain gen
eral observations upon the prin
The Washington times., 1932-12-06
NAVY CUTS FACE
HARD BATTLE

Hating all naval vessel con-
struction. as recommended today
by President Hoover, will bring a,
sharp fight in Congress. leaders
predicted. :,
Representative McClintic of OK
lahoma, ranking Democrat on the
Naval Affairs Committee, already
has committed himself to deter
mined opposition to further ex,
penditures on capital ships at this
time.
The "big Navy" bloc, however,
is planning a last ditch battle to
keep the present rate of conStruc-
ton, although it is we'll below the
treaty limit. Members generally
declined to commit themselves be-
fore experts are heard by the
committee.
The Washington times., 1932-12-06
Urges Nation Continue to Aid Veterans,
Supports General Manufacturers Tax

will recommend measures to
eliminate certain payments in the
veterans services. I conceive
these outlays were entirely beyond
the original intentions of Con-
gress in building up veterans
allowances. Many abuses have
grown up from ill-considered legis-
lation, They should be eliminated.
The Nation should not ask for
a reduction in allowances to men
and dependents whose disabilities
rise out of war service nor to
those veterans with substantial
service who have become totally
disabled from non-war-connected
causes and who are at the same
time without other support. These
latter veterans are a charge on
the community at some point,
and I feel that in view of their
service to the Nation as whole
the responsibility should fall
upon the Federal Government.
Many of the economies recon-
mended in the Budget were pre-
sented at the last session of the
Congress but failed of adoption.
If the Economy and Appropria-
tionS Committees of the Con-
gress in canvassing these pro-
posed expenditures shall find
further reductions which can be
made without impairing essential
Government services, it will be
welcomed both by the country
and by myself. But under no
circumstances do I feel that the
Congress should fail to uphold
the total of reductions recon-
mended.
Some of the older revenues and
some of the revenues provided
under the act passed during the
last session of Congress, particu-
larly those generally referred to
The Washington times., 1932-12-06

President Hoover's message to
Congress was accorded a mixed
reception in Congress today.
His recommendation for a gen.
eral sales tax found great favor
in some quarters, but opposition
in others.
Representative Collier of Mis-
siSsippi, chairman of the power
full Ways and Means Committee,
declared he did not favor the
sales tax, although we may
have to come to it."
Smell for Sales Tax
A chain stores tax, Collier said.
might take the place of the So
called nuisance" taxes which
The Washington times., 1932-12-06

Loan Banks, the establishment of
the Home Loan Banks and Agri-
cultural Credit Associations-all
in their various ramifications have
placed large sums of money at
the disposal of the people in pro-
lection and aid. Beyond this, the
extensive organization of the
country in voluntary action has
produced profound results.
The following table indicates di.
rect expenditures of the Federal
Government in aid to unemploy-
ment, agriculture, and financial
relief over the past four years.
The sums applied to financial
relief multiply themselves many
fold, being in considerable meas
ure the initial capital supplied to
the Reconstruction Finance Cor
poration, Farm Loan Banks, etc.,
which will be recovered to the
Treasury.
The Washington times., 1932-12-06

but it must also give leadership
to cooperative action amongst
the people which will soften the
effect of these revolutions and
thus secure social transformations
in an orderly manner The high
est form of self-government is the
voluntary cooperation within our
people for such purposes.
But I would emphasize again
that social and economic solu--
tions, as such, will not avail to
satisfy the aspirations of the peo-
pie unless they conform with the
traditions of our race, deeply
grooved in their sentiments
through a century and half Of,
struggle for ideals of life that are
rooted in religion and fed from
purely spiritual springs.
HERBERT HOOVER. -,
The White House, :.
December 6, 1882.