As regards the Budget, he expected-that there would be _
roughly a surplus this year of £45,000,000, and next y_ear of £24,600,000. He had, therefore, recommended a provisional reduction of the. Income Tax by 1. per cent. Legislation was already before Congress an the direct cost to the State was estimated at about 02,000,000. Then Mr. Hoover made an emphatic prediction to the effect that the indirect effect of lowering- the tax would be quite otherwise. " Experience has shown that each reduction in . taxes has resulted in revenue in excess of the mathematically computed return under the reduced rates." Mr. Hoover is famous as an architect of pros- perity, and Mr. Snowden who may have become tired of hearing the ancient doctrine which Mr. Hoover has just propounded may reflect that it comes from America with unusual freshness and force. Another matter in which the British Government would do well to watch Mr. Hoover's procedure is his official inspiration of private enterprise. He summons the leaders of industry to Washington ; he encourages them ; he asks for some statement of • the maximum of their effort ; he promises that the Government will " never let them down " ; but he also tells them that it is upon their unaided efforts in the end that the continuance of prosperity-will depend.
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