The Milwaukee Leader

Hoover Defends His
Handling of Slump;
Launches Campaign

ABOARD PRESIDENTIAL TRAIN, EN ROUTE MARION, Ohio—President Hoover's first speaking tour pointing toward the presidential election has met with a mixed reception, in the opinion of those traveling in his party today.

While the 5,000 at the Republican chicken dinner in Indianapolis last night were more enthusiastic than any audience he has addressed since becoming president, there was again, as he drove through the city, preparatory to leaving for Marion, Ohio, today, the same apathy and lack of demonstration which he experienced on his arrival yesterday.

Defenders of the president held it was no indication of lack of support any more than the terrific demonstrations received in 1928 by Gov. Alfred Smith indicated victorious votes. However, some eminent Indiana Republicans were being quoted privately as holding serious fears for the state in the coming election and preparations are being made for one of the hardest fights ever staged, which may involve a re-election battle by Senator James E. Watson, Republican senate leader, such as he never experienced.
BY RAYMOND CLAPPER
Staff Correspondent
The United Press

INDIANAPOLIS, Ind.—After receiving one of the most enthusiastic demonstrations of his presidential career at Indianapolis Fair grounds, President Hoover rose early today to proceed to Marion, Ohio, to join his predecessor, Calvin Coolidge, in dedicating the Harding Memorial.

This long delayed event was regarded as presenting President Hoover with a particularly difficult task in delivering an appropriate address, due to the tragic influences which crossed the path of the Harding administration.

President Hoover laid the basis of his re-election campaign in his speech in Indianapolis at a fried chicken dinner where 5,000 persons covering two acres ate in family style and then repeatedly cheered him as he preached the Republican doctrines of protective tariff, opposition to government ownership and
the dole, and outlined a hopeful pic-
ture of an "American plan" in con-
trast to the Russian five-year plan.
The American plan advanced by
Mr. Hoover calls for voluntary ex-
pansion of American activities to
accommodate an expansion of 20,-
000,000 population in the next 20
years.
Guests of Gov. Leslie.
Mr. and Mrs. Hoover spent the
night as guests of Gov. and Mrs.
Leslie at the executive mansion. Ar-
rangements were made to board the
train for Marion immediately after
breakfast. Following the Harding
ceremonies, President Hoover will
go to Columbus to review Civil war
veterans after which he will make
an overnight trip to Springfield;
Ill., to dedicate the remodelled Lin-
coln tomb tomorrow.
Several prominent Indianians,
Senator James E. Watson, Gov. Les-
lie. former Gov. Goodrich, former
Postmaster General New. National
Committeeman Bert Thurman, and
Oscar Foellinger. who managed the
Hoover Indiana pre-convention cam-
paign in 1928, were asked by the
president to accompany him on the
presidential special to Marion.
Mr. Hoover's address last night
was delivered at a chicken dinner
given under the auspices of the In-
diana Republican Editorial Assn.
It was a fighting defense of the
Republican tariff and his handling
of the depression.
Recovery Under Way.
"The underlying forces of recov-
ery are asserting themselves," Mr.
Hoover said without making any
specific predictions regarding the
immediate future.
Criticism of the activities of bear
raiders in Wall Street who have
pressed down major stocks like
United States Steel to below par
was voiced just after he condemned
those who would make political
capital out of the depression
through magnifying our unemploy-
ment and losses."
"Other small groups in the busi-
ness world," he continued, "make
their contribution to distress by
raids on our markets with purpose
to profit from depreciation of se-
curities and commodities. Both
groups are within the law; they are
equally condemned by our public
and business opinion; they are by
no means helpful to the nation."
Urges Tax Revision.
Mr. Hoover also said taxes on
capital gains "viciously promote
the booms and just as viciously in-
tensify depressions." He urged that
the whole national and local prob-
lem of the incidence of taxation be
reconsidered. An undue proportion
of taxes falls on farmers, home
owners, and all real property hold-
ers, the president declared.
Speaking in the heart of normally
Republican territory which, how-
ever, is regarded by both sides as
likely to be debatable next year,
Mr. Hoover struck a brief but bold-
ly defiant note against criticism of
the Republican tariff.
"Our tariff had proved so low
that our farmers were being crowd-
ed even from the domestic market
in many products which by use of
diversification they can substitute
to take up the slack in export busi-
ness," Mr. Hoover said. "From
that condition we have given him
protection and we stand upon it."
Pile Up Savings.
"Although fear has resulted in
unnecessary reduction in spending,
yet these very reductions are piling
up savings in our savings banks
until today they are the largest in
our history. Surplus money does
not remain idle for long. Ultimate-
ly it is the most insistent promoter
of enterprise and optimism. Con-
sumption of retail goods in many
lines is proceeding at a higher rate
than last year. The harvest pros-
pects indicate recovery from the
drought and increased employment
in handling the crop. Revolutions
in many countries have spent them-
themselves, and stability is on the as-
cendancy. The underlying forces of
recovery are asserting themselves."
The president said scores of "the-
oretical panaceas" and "economic
patent medicines" are being urged
on him and many, apparently ac-
quiring "an infection" from Rus-
sia's five-year plan, are suggesting
an advance plan for future develop-
ment of the United States.
"I am able to propose an Ameri
can plan to you. We plan to take
care of 20,000,000 increase in popu-
lation in the next 20 years. We
plan to build for them 4,000,000
new and better homes, thousands
of new and still more beautiful city
buildings, thousands of factories;