The President's News Conference

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 you-just as background in case anything develops. There is a good deal of discussion and misunderstanding going on in Europe about the measures 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 DEPARTMENTS AND AGENCIES

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.

Q. That is to take effect at once, Mr. President ?

THE PRESIDENT. Yes.