4 V v '?tW! i "-$14
The Commoner
'.
10
VOL. 19.
NO. 12
r
Ik
v.-
Br.
1
President Wilson's Annual Message 3?.,?:
Following to tha tost of Prosldont Wilson's
message to Congress, which was read soparate
ly to tho Houho und tho Senato December 2 : '
To tho Sonato and House of Representa
tives: I sincerely regrot I cannot be pronont at tno
opening of this session of tho congress. I am
thus prevented from presenting in as direct
a way as I could wish tho many questions that
are prosslng for solution nt this time. Happily,
I have tho advantago of tho advice of tho heads
of tho several oxecutivo departments who
havo lcopt in closo touch with affairs in their
detail, and whoso thoughtful recommendations
I earnestly second.
In tho matter of the railroads and the read
justment of their affairs, growing out of federal
control, I shall talco tho liberty nt a later day
of addressing you.
I hope that congress will bring to a conclu
sion at this session legislation looking to tho
establishment of a budget system. That there
should bo ono single authority responsible for
tho making of all appropriations, and that ap
propriations should be mado not independently
of oach other, but with roferonce to one single
comprehensive plan of expenditure properly re
lated to tho nation's income, there can be no
doubt. I believe tho burden of preparing ' tho
budget must, in tho nature of tho case, if
the work is to bo properly dono and responsi
bility concentrated instead of divided, rest upon
the executive. Tho budget so propared should
bo submitted to and approved or amended by
a single committee of each house of congress,
and no singlo appropriation should be mado
by tho congress, except such as may have been
included in tho budget propared by tho execu
tive or added by tho particular committoo of
congress charged with tho budget legislation.
Another and not less important aspect of tho
problem is tho ascertainment of the economy
and efllcloncy with which tho moneys appro
prlated are expended. Under oxisting law tho
only audit is for tho purpose of ascertaining
whother expenditures havo boon lawfully mado
within tho appropriations. No one Is author
ized or equipped to ascertain whother the money
has boon spont wisely, economically and ef
fectively. Tho auditors should bo highly
trained officials with permanent tenure in tho
treasury department, free of obligation to
or motives of consideration for this or any
subsequent administration, and authorized and
ompowored to oxaminq into and iuako report
upon tho methods employod and tho results
obtained by tho- executive departments of tho
government. Thoir reports should, bo made to
tho congress and to the secretury of tho
treasury.
FUTURE TAXATION PROBLEM
I trust that tho congress will give its im
mediate consideration to the problem of future
taxation. Simplification of tho income and prof
its taxes has become an immcdlato necessity.
Th030 taxes performed indepensable service
during tho war. They must, however, bo sim
plified, not only to save tho taxpayer incon
venience and' oxpense, but in order that his
liability may bo made cortain and definite
With reference to tho dotaila of tho revenue
law, the secret 7 ry of tho treasury and the
commissioner of internal revenue will lay be
fore you for your consideration certain amend
ments necessary or desirable in connection with
the administration of the law recommenda
tions which have my approval and support It
,8,?f4i10 wtmost importance that in .dealinir
with this matter tho presont law should not
ho disturbod so far as regards taxes for tho
vol? lW20, Payable in the calendar
year 1921. Tho congress might well onnsM
or whether the higher rates of income and
profits taxes can in peace times be effectively
productive of revenue, and whether they may
not, on tho contrary, bo destructive of busi
ness activity and productive of waste anr S
efllcloncy. There is a point at wh?ch in ?
times high rates of income and profits ?axe1
discourage energy, remove the incentive to new
enterprise encourage extravagant einonJmSI
and produce industrial stagntk with con
sequent unemployment and other attendant
Tho problem is not an oasv ono a f,i
mental change has taken place wtth rferenC0"
to the position of America in tlio world's af-
fa?rs. Tho prejudico and passions ongendored
by decades of controversy between two schools
of political and economic thought the one be
lievers in protection of American industries,
the other beliovors in tariff for revenue only
must be subordinated to the singlo consid
eration of tho public interest in tho light of
utterly changed conditions. Before tho war
America was heavily the debtor of tho. rest of
tho world, and tho Interest payments she had
to make to foreign countries on American se
curities held abroad, the expenditures of Ameri
can travellers abroad and the ocean freight
charges sho had to pay to others, about bal
anced tho value of her pro-war favorable bal
ance of trade. During tho war America's ox
ports havo been greatly stimulated and in
crpased prices havo Increased their value. On
the other hand, sho has purchased a large
proportion of tho Amorican securities previ
ously held abroad, has loaned some $9,000,000,
000 to foreign governments and has built her
own ships. Our favorable balance of trade has
thus been greatly increased and Europe has
been deprived of the means of meeting it here
tofore oxisting. -
Europe can have only -three ways of meet
ing the favorable balance of trade in peace
times by imports into this country of gold or
of goods or by establishing new credits. Europe
is in no position at tho present time to ship
gold to us, nor could wo contemplate largo
further imports of gold into this country with
out concern. The time has nearly passed for
International governmental loans, and it will
take time to develop in this country a market
for foreign securities. Anything, therefore,
which would tend to prevent foreign countries
from settling for our exports by shipments of
goods into this country could only have the
effect of preventing them from paying for our
exports, and therefore of preventing tho ex
ports from being mado. The productivity of
the country, greatly stimulated by the war
must find an outlet by oxports to foroign coun
r5 an any measures taken to prevent im
ports will Inevitably curtail exports, force cur
tailment of production, load the banking ma-
S2SS7 fith? C0Untry with credits to cary
unsold products and produce industrial stagna
tion and unemployment. If wo want to sell
we must be prepared to buy. Whalfver, ?her "
fore, may havo been our views during the
period of growth of American busines! con
cerning tariff legislation, we must now adjust
our own economic life to a changed condition
growing out of the fact that American business
sxnrtf dwSst Amerlca is the
ISOLATION ENDED BY WARV
. No policy of isolation will satisfy tho crow
ing needs and opportunities for America Tho
. provincial standards and policies of the Jst
XJJui hw held Ameran business as if ? a
strait jacket, must yield and give way to tho
w? UrSS? ih n"W day
wo live, a clay full of hope and nromisp fnr
American business if we will but tako advantage
oMho opportunities that are ours forTthoask!
The recent war has ended our isolation ami
TUnZ? Sf ? grat duty and reSonsibimyd
Tlio United States must share the exnanrtin
world markets. The United States des;?es fnr ?fS
self only equal opportunity with the1 other imZ
tions of the world, and through the process of
friendly co-operation and fair romniSm m
legitimate interests of the nation'cerned
may be successfully and equitably adjusted
There are other matters of taJortSS' n
on which I urged action at he last sess oPn
of congress, which are still pressing f of solu "
lZ'n J am B,uro U Is not Necessary f0r me
recognition ana rXf to our LldhS?"0? 0f
do no bettor than to quoo from mt .',,,, an
ago urging this vory action- y aBt mes"
"fd t!f Places tor'wZ? SSf arefiK
the daily work of tho countrv i ,u
done by developing and maiufalning X
adequate scale tho admirSii B "Pon an
created by the Department TLXZ??
ing men seeking work- and t ?JL '? PHC"
done, in at IcastU "eVfiehl? by J
nnlntert f ?rwJ"OI7 of tho Z , Ur.
der;a7LTMv5.&y which r; or n
in the Wthito ffieveCd Sfi
countrv whini, !. -. v,eoped reel. H?.tt4
ready 'prepared, or can' reSi " S,7
cultivation, and also 2 tt,a"y , ?"' &
or norrflnfa,i . " many of Mln .. or,
f zrnrr re.us which ue wiM,r"Vul.0Tr
Vii I .umo- abates; and I nnpo ru iao miu
liberty or recommending verv ,?.mof? le i
i'wih snaii receive tho im, rmy that Mil
stantial support of the ooniTn
In the mattor .,D,YE. INDUSTRY
call your attention to the Jff If at on' beg (0
in my last message urginVltfqhM18 Con
erence to the establish la"0n ref-1
ViSfi11? nf ? !n AmerIca.W, Clm
federation hni i t"88 l? which snerh,
facture of dyesuf d?eSt do ?e '
complete dependence upon ri0Chem!cals- Our
fore tho wni. nl .pon. Ger,nan suddIIp. kT
y-JHBSBl&
ftSrtwS" on' the on7 hand fVW '-i
and poisonous gases o, '""tt""!0 S"
has given tho industry an oXSLSon1Wr'
gramnir'o'f inTernXnTSmaJtnn,,l
nevertheless ,bo a noiZJ ?,!," monl' " wl.
make' oertai f ttl1".!"! li
many BtronK and wbII..' ?in M.a oil
The- German chemical todust,;uhThKi
capable of exeVcisingaVeturocToS:
ly insidious and dangerous kind" pecuur",
?UJ,!n? the Wa.r farmer Performed a vital
and willing service to the nation. By materS
iIifS?Alns P6 pr?duction his land ho'
supplied Amorica and the Allies with tho In"
creased amounts of food necessary to keep their ;
immense armies Jn tho field. He indlspeas
ably helped to win the war pf iw i
scarcely less need, sl increasing the production
in food and tho necessaries of life. I ask the
congress to consider means of encouraging ef
fort along these lines. Tho importance of do
ing everything possiblo to promote production
along economical lines, to improve marketing
and to make rural life more attractive and
healthful, is obvious.
I would urge approval of the plans already
proposed to the congress by the secrotary of
agriculture, to secure the essential facts re
quired for the propor study of this question,
through the proposed enlarged programmes for
farm management studies and crop estimates.
I would urge also, the continuance of federal
participation in the building of good roads, un
der the terms of existing law and under the
direction of present agencies; the need of
further action on the part of the slates and tho
federal government to preserve and develop
our forest resources, especially through the
practice of better forestry mothods on privato
hnldinca nrwl thn oYrnnalftn nf llift nilhllclV-
owned forests; better support for country.
scnoois and the more definite direction 01
their courses of study along lines related to
rural problems; and fuller provision for sani
tation in rural districts and tho building up
of needed hospital and medical facilities in
these localities Perhaps tho way might bo
cleared, for many of these desirable reforms by
a fresh comprehensive survey made of rural
conditions by a conference composed of rep
resentatives of the farmers and of the agricul
tural agencies responsible for leadership.
UNREST IN BODY POLITIC
"I would call your attention to the wide
spread condition of political restlessness m
our "body politic. Tho causes of this unrest,
while various and complicated, are super
ficial rather than deep seated. Broadly tney
arise from, or are connected with, the failure
on the part of our government to arrive spew
ily at' a' just and permanent peace permmins
return to normal conditions, from the trans
fusion of radical theories from seetiiiDB
European centres pending such delay from nean
less profiteering resulting in the increase
tho cost of living, and lastly from tho macww
tions of passionate and malevolent ag jww
With tho return to normal conditions, tins
rest will rapidly disappear. In the meani
it does much evil. ,, lfIl (Ms
It- seems to mo that in dealing wl J iVf
situation congress should not be impai .en
drastic, but should seek rather to rcoun.
causes. It Bhould endeavor to bring our
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