$500,000,000, for the fiscal year 1932 and to remain available until expended, for subscriptions to Capital Stock, Reconstruction Finance Corporation. I am transmitting this estimate of appropriation at this time so that the important operations of the corporation may be commenced at the earliest possible date. Further details regarding this estimate are set forth in the letter of the Director of the Bureau of the Budget, which is transmitted herewith. Respectfully, [The Speaker of the House of Representatives] HERBERT HOOVER NOTE: The message and accompanying papers are printed in House Document 232 (72d Cong., 1st sess.). 27 Statement About Signing the Reconstruction Finance Corporation Act. January 22, 1932 THE PRESIDENT said: "I have signed the Reconstruction Finance Corporation Act. "It brings into being a powerful organization with adequate resources, able to strengthen weaknesses that may develop in our credit, banking, and railway structure, in order to permit business and industry to carry on normal activities free from the fear of unexpected shocks and retarding influences. "Its purpose is to stop deflation in agriculture and industry and thus to increase employment by the restoration of men to their normal jobs. It is not created for the aid of big industries or big banks. Such institutions are amply able to take care of themselves. It is created for the support of the smaller banks and financial institutions, and through rendering their resources liquid to give renewed support to business, industry, and agriculture. It should give opportunity to mobilize the gigantic strength of our country for recovery. "In attaching my signature to this extremely important legislation, I wish to pay tribute to the patriotism of the men in both Houses of Congress who have given proof of their devotion to the welfare of their country irrespective of political affiliation." NOTE: As enacted, the Reconstruction Finance Corporation Act (H.R. 7360), approved January 22, 1932, is Public, No. 2 (47 Stat. 5). 28 Statement About Signing the Federal Farm January 23, 1932 THE PRESIDENT said: "I am glad to sign the third of our reconstruction measures-that providing additional capital to the Federal land banks. It should (a) reinforce the credit of the Federal land bank system and reassure investors in land bank bonds; (b) thus enable the banks to obtain capital for farmers at reasonable rates; and (c) above all bring relief and hope to many borrowers from the banks who have done their honest best but, because of circumstances beyond their control, have been unable temporarily to make the grade." NOTE: As enacted, the Federal Farm Loan Act, amendments (H.R. 6172), approved January 23, 1932, is Public, No. 3 (47 Stat. 12). The President referred to the act as the third of the reconstruction measures; the first two were the Foreign Debt Moratorium Resolution (see 1931 volume, Item 450), and the Reconstruction Finance Corporation Act (see Item 27). 29 Letter to the Speaker of the House Transmitting an Estimate of Appropriations for Federal Land Banks. January 25, 1932 Sir: I have the honor to transmit herewith for the consideration of Congress an estimate of appropriation for the Treasury Department for $125,000,000, for the fiscal year 1932 and to remain available until expended, for subscriptions to capital stock, Federal land banks. I am transmitting this estimate of appropriation at this time so that funds may be available for the stock subscriptions authorized by the act at the earliest possible date. Further details regarding this estimate are set forth in the letter of the Director of the Bureau of the Budget, which is transmitted herewith. Respectfully, [The Speaker of the House of Representatives] NOTE: The message and accompanying papers are printed in House Document 233 (72d Cong., 1st sess.). 30 Message to the Annual Dinner of the Society of the Genesee Honoring Lillian D. Wald. January 25, 1932 [Released January 25, 1932. Dated January 19, 1932] My dear Mr. Wiley: Please convey to the Society of the Genesee, and to its guest of honor, my felicitations on its thirty-third annual dinner. Miss Lillian D. Wald's untiring efforts in the amelioration of human suffering have rightly earned her the approbation of her fellow-citizens. The Geneseens have cause for pride in numbering Miss Wald among their company. Her position in our national life is unique. Her life has been marked by steadfastness and courage. My best wishes attend the success of the dinner and of the Society. Yours faithfully, HERBERT HOOVER [Mr. Louis Wiley, Chairman, Board of Governors, Society of the Genesee, The New York Times, 229 West 43rd Street, New York City] NOTE: The message was read at the society's annual dinner, held in the Hotel Commodore in New York City. Miss Wald was active in all branches of social work. 31 The President's News Conference of January 26, 1932 THE PRESIDENT. I haven't anything today of profound importance in the way of news. RECONSTRUCTION FINANCE CORPORATION By way of background, I have a number of questions about the fourth member of the Reconstruction Board. The problem there is the desire of the States north of Texas and west of the Mississippi River to have representation and the desire of the States in the Southeast, and it is a matter that will have to be worked out and probably will take some days to do so. It is to be worked out, as I told you before, with the Democratic leaders in and out of Congress. EUROPEAN CONCERN FOR U.S. FISCAL POLICY One matter has come up that might be of some importance to youjust as background in case anything develops. There is a good deal of discussion and misunderstanding going on in Europe about the meas ures that we have undertaken. There is a good deal of statement going on that we have undertaken policies of inflation. That is absolutely untrue, and arises from the different understanding of Europe of the word "inflation." Inflation in Europe means the printing of currency by the government to pay its expenses, and necessarily people in Europe get frightened when they hear the word inflation, or stoppage of deflation, or any other use of the word inflation. There are none of the proposals made in Congress or made by the administration that have the remotest element of inflation in them. We propose to make up our budget deficiency by the issue of bonds, which is not inflation, and we propose to balance the budget next year by taxation, which is certainly not inflation. The emergency measures which we have taken are the use of Government credit to loosen up frozen credits in institutions, and that is not inflation. Nothing in the nature of currency issues is contemplated or ever has been contemplated. SUPPLIES OF FOREIGN ORIGIN FOR U.S. GOVERNMENT There is one other little problem that has arisen on which I have some questions. In the purchase of supplies by the Government departments lately they have had bids for foreign goods under the American prices-possibly due to the foreigners being off the gold standard. It raised a question, and I shall be making a recommendation to Congress that our departments should give preference to American goods in bids where there are articles that are suitable for our use. DISTRICT OF COLUMBIA POSTMASTER And I have no news for quotation except one item that may interest the Washington papers, and that is the reappointment of the Washington Postmaster. QUESTIONS Q. Mr. President, do we understand that you are to ask Congress for legislation in reference to American goods? THE PRESIDENT. Yes. |