Evening star., 1932-04-27
Hoover Tells State Executives
Taxation Is Problem for All
Government Units.
CONFERENCES SUGGESTED
TO STUDY FISCAL NEEDS
Chief Executive Declares Cost of
Administration Too Large a
Share of National Wealth.
BY the Associated Press

BY the Associated Press.
RICHMOND, Va, April 27.-As the
sure highway to national recovery"
President Hoover cited TO the Governors
Conference today the absolute neces-
sity' of reducing expenditures, better
distributed taxation and balanced bud
gets on the part of government.
Town councils, county commissions,
State Legislatures and the Congress
agree on these fundamentals, he said,
but to accomplish them we must have
the intelligent support of the people
themselves that selfish vested interest
and vested habit do not, by their organ
lied sectional and group oppositions or
individual action, defeat these high
purposes"
Suggests Conferences.
Expressing wish for greater CO.
operation toward settling governmental
problems, he suggested that the Gov
ernors sponsor in their States such
conferences as they have been holding
here. Having the local executives ex-
anime their difficulties together, he
said, would help toward realization
that local expenditures and taxes are
a part of a great national problem in
stability as well as one OF local
concern"
Stressing the need for adjustments,
the President told of Federal, State
and local government expenditures ris-
ing from $4,000, 100000 in 1913 to $l3,-
zoe. 900 900 in 1880 and the total out
standing debt going from $4,000, 600, 600
to $50, 500, 100000 in the same time.
Before the war, the total governmental
cost represented but per cent of the
national income and Mr.. Hoover esti-
mated the present proportion at above
20 per cent.
I'VE cannot restore economic sta
bility in the Nation by continuing 10
siphon SO large part OF private effort
into the Golfers of the Government"
he said. Its abstraction from the peo-
pie stiles the productivity, the con-
sumption and the recovery OF employ
ment.
Urges Tax Study.
Nor can we hide our heads in the
sand by borrowing to cover current
Government expenses, for thus We drain
the capital of the country into public
dustry and commerce"
He urged study of the tax problem
with a view toward reorganization to
distribute the burden more evenly and
cutting down duplication in taxation
BY the Federal State and local gov
ernments. Especially he spoke with dis
favor of the general property tax. relied
on heavily by States and local govern
ments.
Decreasing prices and decreasing in
come result in an increasing burden
upon property owners, both in rural
and urban communities, which IS now
becoming almost unbearable," he de-
clared. "The tax burden upon real
estate is wholly out OF proportion TO
that upon other forms of property and
income
There is no farm relief more needed
today than tax relief, for 1 believe 1t
can be demonstrated that the tax bur-
den upon the farmer today exceeds the
burden upon other groups"
In closing, the President paid tribute
''to the courage shown by our public
officials, both executive and legislative,
in these problems" Theirs is no path
of roses, he said, but lis one to invite
the anger of established interests"
To the public he addressed this mes
sage:
BE patient, be helpful; recognize the
completely and the difficulty of the
problem before these servants of your
combined public interest. Support them
in their task, for upon its successful
conclusion depends most momentous
contribution to our united security, our
hope of an early return to stability and
the common welfare of every man,
woman and child in our Nation
President Hoover and his party Of
approximately 80, reached Richmond
at So O'Clock. The President was
Immediately escorted by an honor
guard to the John Marshall Hotel.
The President was met by Gov. John
Garland Pollard of Virginia, host to
the conference; Gov Case of Rhode
Island. chairman of the Conference
Executive Committee, and Gov. Rolph
of California.
A presidential salute of 81 guns was
fired by a detail Of the Virginia Ma
tional Guard to herald Mr.. Hoover's
arrival
The Governors will repay the Presi-
Continued on Page 4, Column 80