Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-06
The State of the Union.


President Hoover today transmitted
10 Congress information upon the state
of the Union" together with certain
recommendations for legislation to i'm
prove conditions Undoubtedly to the
people of Washington, the seat Of the
National Government, his proposals re-
garding employment and pay Of Federal
workers will appear of vital interest.
He recommended a continuation of the
'furlough system" adopted by Congress
for the present fiscal year. and to this
he added salary cut Of eleven per cent
upon all Government pay in excess OF
$1,000. 1t is estimated that, added to the
Through without-pay cut, the average
salary cut for those receiving more than
$1,000 a year will be slightly in excess
of IA per cent. The cut now proposed
Is for one year.
The great need of reducing govern
mental expenses in the plan for bal
anced budget is cited by the President
as the reason for calling for a further
and additional pay cut for Government
employees He said that the cost of liv-
ing has been reduced by 20 per cent
and that therefore the Government EN-
ployeS and officials could better stand
the proposed cut.
Admitted that the Government ex-
penditures have run far too high, it Is
not a matter of record that Congress
has ever fastened to give the Federal
employees high pay to match the in
creasing cost of living. 1t would be
fairer now to lop big sums from the
Government expenditures in some other
direction than from the wages Of the
workers. Undoubtedly the recommended
tons to cut salaries will be strongly re-
sisted. The proponents of Government
pay cuts will seek to use the psychology
Of the unemployment situation to bolster
their cause. But it is always debatable
question whether it is possible to i'm
prove the condition of a whole people
by pulling down a certain group to a
lower level of wages.
The President suggested In his mes
sage, too, the need of new sources of
taxation and in effect recommended
d general manufacturers excise or sales
tax. The piecemeal attack on the tax
problem made by Congress at its last
session has proved insufficient to meet
the Governments needs. The Chief
Executive quite properly said that it
would be not only fairer, but far more
efficient to levy a reasonable and uni
form tax on manufacturers than to sim
gle out a few for higher rates of tax
aticn.
While Mr.. Hoover leaves no doubt
IN the mind that this country has a
struggle ahead of it to mount finally
out of the slough of the depression, he
pictures the country as going institu-
ton of great and enduring virility, with
much to be thankful for. He declares
that the public health, Notwithstanding
the hadships the people have en-
countered is better than before the de-
preston began. He points to the lack
Of industrial strife as a good sign, too,
and the improvement made in employ
ment and production and consumption
since last July.
Among his most important recon-
mendations to Congress is a proposal
that the banking system be reorgan-
lied and strengthened. The appalling
number Of bank failures in this
country-4,665 banks suspending since
January /, 1880, with deposits totaling
$4,000, ooo, u00-is given by the Presi-
dent as a clear indication that there is
. fault in the system. His statement
that during the same period in Great
Britain, which has been terribly hit by
the depression, no banks have failed
must convince any one that there is
need Of reform in this country.
The President stresses the need Of
economic cooperation with other ma
tons in the effort to restore a measure
Of prosperity throughout this country
and the world. Three lines of attack
are suggested-first, disarmament; Sec
ord, an economic conference soon to be
he'd, and, third, proper handling Of
the intergovernmental debts. No sug-
gestion is made Of debt cancellation by
the United States, but the implication
is that other avenues of payment thar
cash might well be opened