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The Commoner
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VOL; 20, S6. 3.2
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Prraeeii" -5VflbS6a Annual Message
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(Below is the full text of president Wilson's
final regular message to congress, whhm was sent
to ilio Senate anil House at W&slulngtdn, Decem
ber 7,-l920.)
When I addressed myself to performing the
duty laid upon the president by the constitution
to present to you an annual report on thest'atb
of-the. union 1 found myself dominated by att
Immortal sentence of Abraham Lincoln's, . "Let
us have faith right makes might, and in that
fith let us dare to do our duty as We understand t
Jt," a sontdnce immortal because it embodies
jn a form of Utter simplicity and .purity the
essential state of the nation, the faith in which
it was conceived and the faith in which it has
grown to glory and powor. With that faith and
the, birth of a nation founded upon It came the
qpe into the world that a new order would
prevail throughout the affairs of mankind, an
order Jn whioh reason and right would take
precedence- of covotousness and force, and I be- .
-lieve that I express the will and purpose of
every thoughtful American when I say that this
sentence marks for us In the plainest manner
the part we should play alike in the arrange
ment of our domestic affairs and in our exer
cise of influence upon the affairs of the world.
By this faith and by this faith alone, can the
world be lifted out of Its present confusion and
despair. It was this faith Which prevailed over
the wicked force of Germany. You will re
member that the beginning of the endof the
war came when the German people found them
selves fa'deu to face with the conscience of the
world and realized that right was everywhere
arraye.d against the wrqng that their govern
ment WAs attempting to perpetrate. I think, i4.
ihiref&r.V thafclt Is., true to say that this was the'"
A tajth whicH wdn the war. -
,--?,C$rtalniiy ..this fs the faith wlth whioh V bur
; Kathtfnt :menwent into the field and out upon
ifte sfea io make sure of victory. (
This Is the mission upon which democracy .
came into-he wo'vld, Demoorjicy is an Pgser
tioh tif tup. right pf, the Individual to live 'and to
tie treated justly as against any attempt on the
part of any combination of individuals to make
)awa which will overburden him or which will
destroy his equality among his fellows in the
matter of right of privilege, and I think we
all realize that the day has come when democ
racy is heing; put upon its final, test. The old
world is just now suffering from a wanton re
jection of the principle of democracy and' a
substitution of the principle pf autocracy ;as
asserted in the name but without the authority '
and sanction of the multitudes, This is the time
of all others where democracy should prove
its, purity and its spiritual power to prevail,
It is surely the manifest destiny of, the United
States to lead in the attempt to make this spirit
prevail' ... - ' .
HOW DESTINY MAY BE FULFILLED-, .:''"
.. . ',., " """ --,.' y '
ThV'e are two .ways in wlilcS .the United"
States can assist to accomplish, this great object,: -
First, by offering the example within her
pwn-hprders of the. will and ppwor of deniocr
racy to make and enforce laws which are un
questionably just and which are equal in their
administration laws .hich secure its full right
to labor and yet at the same time safeguard
tho integrity of property and particularfy of that
property which is devoted to the development
pf industry and the increase of the necessary
wealth of the world. -' . 1 i
-V Second, by standing for right and justice
a&x toward individual nations. The law of de
mocracy is for the protection of the weak and
the influence of every democracy- in theWorld
should be for the protection of the weak na
tion, the nation Which is struggling toward Its
. right and toward its proper recognition" and
privilege in the family of nations. The United
States cannot refuse this role of champion with
out putting, the stigma of rejection upon the
great and devoted men who brought its gov
ernment into existence and established it in "the
face of almost universal opposition and intrigue,
eren In. the face ot wanton force,. s, for example,
Against the orders in council -of Great Britain
, and the arbitrary Napoleonic decrees which in
volved us In what we know as the war of 1812.
X urge you to consider that .the Ulsplay of an
immediate disposition on the "part of the con
gress tp' remedy any injustices or evils that may"
have shown, themselves in. our own national '
life will afford the most effectual offset to the
forces of chaos and tyranny which are placing
so disastrous a part in the fortunes of. the
free peoples of more than one part of the world.
The .United States is of necessity the sample
democracy of the world and the triumph of
democracy depends upon it success,
WAR RECdVERY SLOW '
Re6ovory frpm the disturbing, and sometimes
disastrous effects of the late war has been ex
ceedingly slow on tho other side of the water
and hits given promise, I venture to say, of,
early completion only In our own fortunate
country, but even with us the recovery halts
and is impeded at times and there are im
mediately serviceable acts of legislation which
it seems to me we ought to attempt to assist
that recovery and prove the Indestructible re
cuperative force of a groat government of the
people, One- of these is to prove that a great
democracy can keep hpuso as successfully and in
as business-like a fashion as any other govern
ment. It seems to me that the first step towards
proving this is to supply ourselves with a, sys
tematic method of handling our estimates and
expenditures and bringing them to the point
where they will not be an unnecessary strain
upon our income or necessitate Unreasonable
taxation, in other words, a workable budget
system, and I respectfully suggest that two ele-i
ments are essential to such a system; namely,
hot only that the proposal of appropriations
should bo in the hands of a single body sitch as
a single appropriations committee in each house
of the congress, but also that this body should
be brought into, such co-pperation with the .de
partments of the government and with the
treasury of the; United States as would enable
it to act upon a complete conception of the
needs of the government and the resources from
which it must draw its income. I reluctantly
vetoed the budget bill passed hy the last sesr
.sion of the congress because of a constitutional
objection, The house of representatives subse
quently modified the hill in order to meet this
mature:" within thonex't twpaud a half years.
Cff this amount two.and a half billibns"are float
ing , debt and 4iVelbilli6ns Victory notes ami War
savings certificates. 'The fiscal program of tho
government must be determined with reference
toflAotJe maturities.
WOULD REDUCE EXPENDITURES
j Sound policy demands -that government ex
penditures be reduced to the lowest amount
whichwill permit the various servicer to operate
efficiently and that government receipt's from
taxes and salvage be maintained sufficiently high
tb provide for current requirements, including
interest -and sinking fund chargestm the public
debt and at the same time retire the floating
debt and part of the victory loan before matur-
"ity. With rigid economy, vigorous salvage op
erations and adequate revenues from taxation, a
surplus of current receipts oyer current expend
itures can be realized and should be applied to
the floating- debt. All branches of the govern-
- ment should co-operate to see that this program
is realized,
I canji'ot overemphasize the necessity bf'econ
nomy in government appropriations and expend
itures and the avoidance "by the congress of
practices which take money' from the treasury
by indefinite or revolving funds appropriations.
The estimates for the present year show that
over a billion dollars of .expenditures were
authorized hy the last congress in addition to
the amounts shown in the usual compiled state
ments of appropriations. This strikingly il
lustrates the importance of making direct and
specific appropriations. The relation between
the, current receipts and current expenditures
of the government during the present fiscal year,
as well as .during J:he last half of the last fiscal
year, has been disturbed by the extraordinary
burdens thrown upon th4 treasury by, thesHrahs
pbrtation act, in connection, with the return'' of
the railroads to pritatt control
MONEY PAID. TO RAlLROAPS
Over 4f6p6,OOO.,0OO has alriidy-beea paid to
the railroads .'under this act IS'BOjO.OO.OQO 'dur
ing th present fl'scal year and it 4g; estimated
that further payments" Aggregating possibly
$660,000,000, must still' be made to the-rail-
objection. ' In the revised form I believe that the ''f,??a !? 3 dwe?e ? Is ;'VWu8
bill coupled with action already taken by the
congress to revise" its rules and procedure, fur
nished the foundations for an effective budget
system. I earnestly hope therefore that one
of the first stqps taken by the present sessioh
of the congress will be to pass the budget bill,
IMPROVEMENTS XN FINANCES
The nation's finances have shown marked
improvement during the past yeari The total
ordinary .receipt of ?6,694000',000 for the
fiscal year 1920 exceed those of 1919 by $1,-
542,000,000 while the total4 net ordinary ex
penditures decreased from if 514,000,000 to
56,403,000,000. The gross public debt, which
Itliat these large payments have already serious
ly limited the government's progress.4n -retiring
the floating debt.. ".v-': " .
Closely connected with this, it' seems tame,
is the necessity for an immediate considera
tion of the revision pf pur tax laws. Simplifica
tion, of the income and profits taxes has become
an immediate necessity. These" taxes preformed
an indispensable service during th war. The
ned for their simplification, however, is very
s great in order to save he tax payer inconven
ience and jpxpense and. 'n crder to mr.ke his li-
.aomty more kcertam andv definite.
when it was
Other and
mbra detailed rGfinmmAnriivfinnHwitVi.vrBrnWl tn
taxea'will no doubt be laid befofe" ybu by the
ghest point on August 31, 1819, . secretaryVot the treasury and" the commissioner
?26,69G,000,000 had dropped on s ot internal revenue, r .- -5.'. , y;
1920. to $24.i7K.nnn.(r.on. .. ' ' " " ? :. --- f
PLEADS FQR. DISABLED vH r: '
Teachedits highest point on August 31, 1819,
November 30, 1920, to $24,175,000,00,
There has also been a marked decrease in
holdings of government War securities by the
banking institutions of the "cpuntry as well as
in the amount pf hills by the federal reserve
banks secured by government war obligations,
This fortunate result has relieved' the banks and
loft them freer to finance the ' needs of agri
culture, industry and commerce.' It has bOen.
due in large part to the "reduction; of the pubwe
debt, especially of the floating debt, but more
particularly to tho improved, distribution of
government securities among permanent invest
ors. The cessation of the government-borrowings
except through short term certificates of indebt
edness hap been, a matter of great consequence
to the people of the country at large, as well
as to the holders of liberty bonds and victory
notes and has an important bearing on the mat
ter of effective credit control. The year has been.
-characterized by the progressive withdrawal of
the treasury, from the dpmesticcredit market
. and from apposition pf dominant influence in
that market, - . .
The future course will necessarily depend
upon the extent pf which economies are prac
ticed and upon the burdens, placed upon the
treasury as well as upon. industrial developments
. and the maintenance of tax receipts at a suf
ficiently high "level,
The fundamental fact which at present domi
nates the government's financial situation is that
seven and a half billions of its war indebtedness
lHs my privilege to draw to theattehtibn of
congress to very sympathetic .consideration the
problem of providing adequate facilities or the
care and treatment of former members of tho
military and naval forces who are sick or dis
abled as-t.no result of their participation in the
war.- These heroic men can never be paid in
money-f or the service they patriotically ren
dered th nation. Their, reward will lie rather
in realization-of the fact that thpy vindicated
the rights of their country and aided in safe
guarding civilization, The nation's, gratitude
must be effectively revealed to them bythe most
ample provision for thpir medical carp and treat
ment as well as for, their vocational training
and placement. The time has come when a
.more complete program, can be formulated and
more .satisfactorily administered for their treat
ment and,. training and I earnestly urge thafthe
congress give the matter its early: consideration.
The secretary of the treasury and the boar.for
.vocatibnai education will 'outline Jn thprr an
. nual reports proposals covering medical car and
.rehabilitation, whiclv".,m sure.will engage ypur
earnest ,study und .cojgmanc youy mpst generous
suppprt",; ., ;. . ; ,-;f :-: ,.;i, . ,
PermiKme to emph.asi.zii once onpre the. need
; for action upon certain matters upfiit -which I
:clwet fttispine lengthen imy message to Ithe sec
i .ond; : sessipnv of i: the, jS Qth congress i ' The K neces
sity for example,, of encouraging the manufact
ure of dyestuffs and related! chemicals: the im-,
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