Evening star., 1932-04-01
SMITH PROPOSES
ePO|NT PROGRAM
Urqes Prosperity Bonds and
Beer Tax to Balance
Budget.

BY the Associated Press.
NEW YORK, April Former Gov.
Alfred e. Smith last night called for 4
per cent beer and prosperity bonds to
relieve the country's economic ills. He
said he spoke as "citizen once honor
ed with the nomina tion for the presl-
dency of the United States"
Smith spoke freely on national affairs.
He advanced a six-point-tax program
calculated to balance the Federal budget
and chided the Federal Government for
what he termed an indifference toward
the whole question of unemployment.
"They seem to regard it." he said, "as
something that is just too bad and can
not be helped"
smith, speaking over the radio, said
his program would serve the dual pur-
pose OF relieving unemployment and
balancing the budget at the same time.
Suggests Prosperity Bonds.
He suggested an issue of prosperity
bonds. lust as we issued liberty bonds
during the World War" to foster an
expanded public works construction
program.
Bonding the cost of the $500 ,000,0
nIblic works progre m for 1888 he said,
would eliminate one-third Of the deficit.
Another third of the deficiency could
be made up, he said, by tax upon
beer. He urged Congress to enact
reasonable and sensible" det1nltlon OF
what constitutes an intoxicating oev-
erage and suggested that four per cent
would be well within any fair con-
struction of the eighteenth amend
ment."
Such move. Smith said. would
eliminate the necessity for the So
called nuisance levieS, upon which he
said an agreement "is apparently in
For the final one third. Smith ac-
cepted the additional taxes recon-
nended by President Hoover and the
Treasury and agreed to by the House.
In simplifying his proposal for
prosperity bonds the former Governor
said the pay-aS-you-go policy Of
financing public works in normal times
should be abandoned "in times OF
stress such as we are now passing
through"
Asserting the $50O00o,0 900 public
works program contemplated for 1888
was only a flea bite" the former Gov
ernnr suggested careful consideration"
Of expanding the program by pur-
chasing municipal securities to enable
the carrying out Of local building pro-
3ects.
Minimizes Dawes Board.
With reference to the Reconstruction
Finance Corporation, Smith said it
would be long while before anything
really beneficial will grow from this
effort"
Aside from passing the problem on
TO the localities" he continued, "the
Federal Government as such has done
nothing to stimulate employment and
relieve distress"
He observed that legalization of per
cent beer would stimulate business,
afford employment to countless thou
sands" and in the end prove to be
"both good economics and good politics" !"
His recommendations were predicated
upon the theory, Smith said in conclu-
sion, that Congress would not provide
for the soldiers bonus at this session.
"If they do" he warned, "and it is
to be provided by immediate taxation,
there IS no such thing as a balancing
Of the budget"
Six-poiHt Program.
Smiths six-point program follows:
Rigid economy in Government de-
partments.
Elimination Of overlapping govern
mental agencies and duplicated effort
with consequent saving in operating
expenses
That one-third of the deficit be made
up by the additional taxes recommended