1938-04-16 — Page 7

THE CHINA MAIL, APRIL 16, 1938.

ENORMOUS

Page

ROOSEVELT

SPENDING PROGRAMME

New Attempt To End Business "Recession"

Five Thousand

Million Dollar

Plan Outlined

Washington, To-day.

A series of recommendations aiming at coping with the present recession of business in the United States are made by President Roosevelt in a special message to Congress which pro- vides inter alia for the appropriation of $1,550,- 000,000 to be used in the coming financial year for relief, including $1,250,000,0000 for work relief programme during the first seven months of the financial year.

Other recommendations include the immediate un- freezing of additional bank resources totally- ing some $2,150,000,000 by the de-sterilisation of $1,400,000,000 worth of gold and the reduc- tion of the reserve requirements of the mem- ber banks by $750,000,000.

was

The national income which It is also possible that a total of $1,500,000,000 will be employed in was $6,800,000,000 in 1937 has now the renewal of public works expen-dropped to about $5,600,000,000.- diture.

It is emphasised that the Govern-

or

All these amounts are to be spentment does not believe that it could within 18 months.

get an adequate rise in the nation- President Roosevelt described the al income by investing, lending programme as vital and suggested spending public funds. It is essen- that the Government be authorised (tial that private funds be put to to grant states and Municipalities work and all recognise that they $450,000,000 or to lend up to $1,-would be entitled to a fair profit.

for 000,000,000, without interest, public works.

President Roosevelt has also ask-

ed for authority to spend $300,000,-

REFORMS PLANNED

President Roosevelt gave several

000 on slum clearance and housing, instances of reforms necessary, in-

$100,000,000 on roads. and $62,- cluding the elimination in the fu-

000,000 on Government

and flood control works.

buildingsture of tax-exempt Government

HUGE EXPENDITURE

bonds, the imposition of income tax on Government salaries and, "a serious undertaking to solve the railroad problem and the pro- The estimates included in theblems

of monopolistic practices message show a total "recovery" ex-and price fixing." penditure over the next 18 months The President said he had

re-

of $3,012,000,000 including $950,-quested the Securities Exchange 000,000 from recoverable loans but Commission to simplify the regula not including the $2,150,000,000 al-tions so as to facilitate smal busi- ready mentioned nor the $1,500,nesses in raising capital 000,000 which the Reconstruction He concluded, “Let us unanim- Finance Corporation is authorised ously recognise the fact that the to lend to industry.

Federal debt can be paid only if the

President Roosevelt emphasises nation obtains a vastly increased ci- that the reform of Government and tizen income. We must start again business practices must accompany on à long steady upward incline in recovery.

the national income."-Reuter.

The message declares that the business recession was not due to Government interference

but was largely due to certain very undesir- able business practices including the infation of prices and over pro- duction

CONSUMER DEMAND

CHIANG'S EASTER BROADCAST

Hankow, To-day.

Generalissimo Chiang Kai-shek

the Central America, it goes on, is suffering will broadcast from

here this from a failure of consumer demand Broadcasting Station ... and against hopes, re-employment in evening at 8 pm. The theme of the address will be the Spring has not been proceeding Generalissimo's fast enough to create an economic "Why we must believe in Jesus".

Our Own Correspondent. upturn

-

The new British Ambassador to China, Sir Archibald Clark-Kerr,

and Lady Kerr, pose for photographers at Chungking, where the Ambassador on Tuesday presented his credentials to President Lin Sen. (C.M.P.S. Photo).

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