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About The Omaha morning bee. (Omaha [Neb.]) 1922-1927 | View Entire Issue (Dec. 4, 1924)
Strict Economy Keynote of President Coolidge’s Message — V. S. Adherence to World Court, Move to Stop War Urged in Note to Congress Enactment of Legislative Remedies for Agricultural Ills Rec ommended; Executive Declares State of Union ‘‘May Re Regarded ilh Encourage ment” l»y Every American. Further Consolidation of Railroads Suggested Following is the lext of the presidential message, read today before both houses of congress at Washington: % The present state of the union, upon which it is customary for the president to report to the congress under the provisions of the constitu tion, is such that it may be regarded with encouragement and satisfaction by every American. Our country is almost unique in lls ability to dis charge fully and promptly all Its ob 1 gatlons at home and abroad, and provide for all its inhabitants an in crease in material resources, in intel lectual vigor and in moral power. The nation holds a position unsurpassed i'l all former human experience. This does not mean that we do not have any problems. It is elementary ihat the increasing breadth of our ex perience necessarily increases the problems of our national life. But it does mean that if we will but apply ourselves industriously and honestly, we have ample powers with which to meet our problems and provide for their speedy solution. I do not pro fess that we *an secure an era of perfection in human existence, hut we can provide an era -of peace and prosperity, attended with freedom and Justice and made more and more satisfying by the ministrations of the charities and humanities of life. Our domestic problems are for (he most part economic. We have our enormous deht to pay. and we arc paying It. We have the high cost of government to diminish, and wc are diminishing it. We have a heavy bur den of taxation to reduce, and we are reducing it. But while remarkable progress has been made in these di rections, the work is yet far from ac complished, We still owe over $21, oa0.000.000, the cost of the national government is still about $^,500,000, 000, and the national taxes still amount to about $27 for each one of our Inhabitants. There yet. exists this enormous field for the applica tion of economy. In my opinion, the government ran do more to remedy the economic ills of the people by a system of rigid economy in public expenditure than can he accomplished through any other action. The costs of our na tional and local governments com bined now stand at a sum- dose to MOO for each inhabitant of the land. A little less than one-third of this is represented by national expenditure, i ml n little more than two-thirds by local pxiicndltme. It is an ominous fact lhat only the national govern merit Is reducing its debt. Others are increasing theirs at about $1,000,000. tuici each year. Tlje depression that overtook business, the disaster expert i need In agriculture, the lack of em ployment and the terrific shrinkage in all values which our country ex perienced In a ninet acute foi m in 1920, resulted In no small measure from the prohibitive taxes which were then levied on all productive effort. The establishment of n system of drastic economy In public expendi ture, which has enabled us to pay oft about one-fifth of the national debt since 1919, and almost cut in two the national tax burden since 1921, has been one of Ihe main causes in re establishing a prosperity which has come to include within its benefits almost every one of our inhabitants., Kconomy reaches everywhere. Jt carii* a blessing to everybody. The fallacy of the claim that the costs of government are borne by the rich and those who make a direct contribution to the national treasury can not lie too often exposed. So system has been devised, I do not think any system could be devised, under which any person living in this .country could escape being af fected by the cost of our government. It has a direct effect both upon the rate and the purchasing power of wages. It Is felt in the price of those prime necessities of existence, food, clothing, fuel and shelter. It would appear to be elementary that the more the government expends the more it must require every producer to contribute out of his production to the public treasury, and the less he will have for his own benefit. The continuing cost of public administra tion ran he met in only one way—by the work of the people. The higher they become, the more the people must work for the government. The less they are, the more the [leopte can work for themselves. The present estimated margin be tween public receipts and expendi tures for this fiscal year is very small. Perhaps the most Important work that this session of the con gress can do Is to continue a policy of economy and further reduce the cost of government. In order that we may have a reduction of taxes for the next fiscal year. .Nothing Is more likely to produce that public confidence which is the forerunner and the mainstay of prosperity, en courage and enlarge business oppor tunity with ample opportunity for employment at good wages, provide a larger market for agricultural prod ticts, and put Olir country In a stronger position to he aide to meet tiie world competition "In trade, than a i out inning policy of economy. Of i-ourre necesanrj costs must lie met, I roper functions of rlie government performed, and constant investments for capital account'and reproductive effort must lie carried on by our various department?. But the people must know that their government is placing upon them no unnecessary hurd'n. Taxes. ■ - ——-• i Everyone desires a reduction of taxes, an 1 there is a great preponder ance of sentiment in favor of taxa tion reform. When I approved the present fax law. I stated publicly that 1 did so in spite uncertain provisions which i believed unwise and harm ful. fine of the most r-dnring of thr * whs the making public of the amounts assessed against different Income tax payers. Although that damage has now been done. I believe its continuation to be detrimental to the public welfare and bound to de crease public revenues, so that it might to he repealed. Anybody can reduce taxes, but it Is not so easy to stand in the gap and resist the passage of increasing ap propriation bills which would make tax reduction Impossible. It will be very easy to measure the strength of the attachment to reduced taxation by the power with which increased appropriations are remitted. If at the close of the present session the con gress has kept ^ within the budget which I propose to present, it. will then he possible to have a moderate amount of tax reduction and all the tax reform that the congress may wish for during the next fiscal year. The country is now' feeding the direct stimulus which came from thp pafc sfge of the last revenue bill, and un dor the assurance of a reasonable sys tem of taxation there Is every pros pert of an era of prosperity of un* pioeedented proportions. l!ut it would b* idle to expect any such results un less business can continue free from excess profits taxation and be ac corded a system of surtaxes at rates which have for their object not the punishment of success or the dis couragement of business, but the i>to duct Ion of the greatest amount of Vcvenue from large Incomes. T am convinced that the larger incomes of j the country would actually yield more I revenue to the government Jf the basis of taxation were scientifically I revised downward. Moreover t he ef fect of the present method of this taxation is to increase the cost of in terest on productiv e enterprise and to increase the burden of rent. It is al together likely that such reduction would so encourage and stimulate in vestment that It would firmly estab I lish our country in the economic lead I erahlp of the world Waterways. m _> Meanwhile our internal development should go on. Provision should he made for flood control of such rivers as the Mississippi and the Colorado, anrl for the opening up of our Inland waterways to commerce. Considera tion Is fine to the project of better navigation from the (irenl Lakes to the gulf. Kvery effort Is being made to promote an agreement with Canada to build the St. Lawrence waterway. There are pending before the congress hills for further development of the Mississippi basin, for the tilling over of the Cape Cod canal in accordance with « moral obligation which seem* to have been incurred during tlie war, Und for thn Improvement of har iKirw on both the Pacific and the At Ian tic coasts. While Mils last should l»e divested of some of Its project* and we must proceed slowly, these Mils in general have my approval. Such works are productive of wealth and in the lop* run tend to a reduc tion of the t^x burden. Reclamation. | uui country tinh a well defined poll* in lx. Uegislatluu lx pendliiK Isixed on • v of reclamation established underlhe report uf I lie I'aci l-'lnding com statutory authority. Tills policy mission fur the fMopei relief uf thus** should he continued and made a self needing •xtenulqn of tlni« In which sustaining activity administered In a to meet their payments on Irrigated manner that will meet local require*Hind, and for additional amendment" rnents and bring our arid lands Into a and reforms of our reclamation laws, profitable state of cultivation al fast which ais all exceedingly Impoilant xa theie Is a market for their prod-arid should he enacted at once, Agriculture. _ j No more Important development haa taken plane In the !a*t year than the ^''*«4Klnnlnp of a reatoration of am Inu1 ■me to a proaperoua rondltlon. We i must permit nn division of classes In this country, with one occupation striving to secure sdvsnts*e over sn ;other. Kach must proceed under open -> High Spots in President’s Mesgesa There jet exists an enormous field for the application of economy. • • * The more the government expends the more it must require every producer to contribute. * * * If the present congress stays within the budget proposed taxes may be further reduced. * * * ltusiness must be freed from excess profits taxes. * * * ltusiness must have a system of surtaxed designed not to punish but to produce a greater revenue. * * * The people must know' that the government is not placing any un necessary burden upon them. • • * An unprecedented prosperity Is before 11s if we will act on this principle. • • * Develop internal waterways. x • * • 'Develop Irrigation as fast as there is a market for the'new faint production that will come as a result of extended acreage. * * • Agricultural prices have placed the farmer almost on a price level with the rest of the nation. * * • The agricultural commission expects to be ready to report in time for action by the present congress. * * * Muscle Shoals should be leased or sold and developed by private initia tive. Its primary purpose is to produce fertilizer. * • • Railroads should be consolidated into fewer but larger systems. * * * Present plans for establishing valuation of the railroad should be continued. . * • • Railroad labor board might be improved but should be further tried out. • * * Kmergency Fleet corporation should be given more adequate powers. * • • tilve supreme court power to reorganize its method of handling rases. • • • Investigate criminal code and procedure that reforms may he brought about in enforcement of criminal laws. • * * Stop the crime of lynching. • * • There must be no competition in building laud or sea armaments. “I shall resist any attempt to resort to the old methods and idd standards." • s » If the nation is to remain free the individual rights guaranteed under the constitution must he protected. L _._____; i opportunities and with a fair prospect of economic equality. The govern ment cannot successfully insure pros perity or fix prices hv legislative flat, livery business has its risk and its times of depression. It is well known that in the long run there will he a more even prosperity and a more sat isfactory range of prices under the natural working out of economic laws than when the government under takes the artificial 'support of mar kets and industries. Still we can so order our affairs, so protect our own people from foreign competition, so arrange our national finances, so ad minister our monetary system, so pro vide for the extension of credits, so improve methods of distribution, as to provide a better working machinery for the transaction of the business of the nation with the least possible fric tion and loss The government has been constantly increasing its efforts in these directions for the relief and permanent establishment of agricul ture on a sound and equal basis with other business. It is estimated that the value of the »rops for this harvest year tnav reach $13,000,000,000, which Is an Increase of over $3,000,000,000 in three years, it compares with $7,100,000,000 In 1013. and if we make deduction from the figures of 1 !*L*4 for the compara tively decreased value of the dollar, the yield this year still exceeds 1013 in purchasing power by over $1,000, 000,000. and in this Interval there has been no Increase in the number of farmers. Mostly by his own effort the farmer has decreased the cost of pro duction. A marked increase in the price of his products and some de crease in the price of his supplies has brought him about to n parity with the rest of the nation. The erop area of this season is estimated at 370,000, j oOO n res. which in n decline of 3,000, 000 acres from last year, and 6,000,000 acres from 1919. This has been a nor mal and natural application of eco nomic laws, which has placed agri culture on a foundation which is un deniably sound and beginning to be satisfactory. A decrease in the world supply of wheat lias resulted in a very large Increase in the price of that com modity. The position of all agricul tural products indicate*^, a better bal anced supply, but we ran not yet con elude that agriculture is recovered! from the effects of the war period or that it is permanently on a pros porous basis. The rattle industry has not yet recovered and In some sec tlons has been suffering from dry weather. Every effort must he made, both by government activity and by, private agencies. to Restore and maintain agriculture to a complete, normal relationship with other indus tries. It was on account of past depres sion. and In spite of present more encouraging conditions, that T have assembled an agricultural conference made up of those who are represen tative of this great industry in both its operating and economic sides. Everyone knows that the great need «>f the farmer is markets. The coun try Is not suffering on the side of production. Almost the entire diffi culty is on the side of distribution. This reaches hack, of course, to unit costs and diversification, and many allied subjects. It is exceedingly In tricate, for our domestic and for eign trade, transportation and hank ing. and In fact our entire economic system, are closely related to it. In time for action at this session, I hope to report to the congress such legis lative remedies as the conference may recommend. An appropriation should be made to defray their necessary ex penses. Muscle Shoals Tii* production of nitrogen for plant fo6l in peart ami explosives in war Is more and more important. It l*_one of the chief sustaining ele ments of life. It is estimated that soli exhaustion each year is repre sented by about 9,000,000 tons and re plenishment 1 >\ fi.I.VO.noo tons. The deficit of 3..V.O.OOO tons is reported to icprrscnt the impairment of 118,000, ooo acres of farm lands each yeRr. To men these necessities the gov ernment h*» been developing a vva ter power project at Muscle Shoal' to be equipped to produce nitrogen for explosives and fertiliser. It is my opinion thitt the support of agri culture is the chief problem to con sider In connection with this prop erty. It could by no means supply the present needs for nitrogen, but It would help and its development would encourage brimming other wa ter powers into lllte use. HievSial offers have been nude for the purchase of tilts fnoperty. Prob ably none of litem represent final ■ . " . terms. Much costly experimentation U necessary to produce commercial nitrogen. For that reason It Is n field better suited to private enter prise than to government operation. 1 should favor a sale of this property, or long-time lease, under rigid guar anties of commercial nitrogen pro duct Inn fit reasonable prices for ngrl cultural use. There would he a stir plus of power for nufny years over any possibility of Its Application to a developing manufacture of nitro gen. It may he found advantageous to dispose of the right to surplus power separately with such reserve tinns as will allow Its gradual with drnwal and application to nitrogen manufacture. A subcommittee of the committees on agriculture should in voAtlgal* this field and negoliate with prospective purchasers. If no advantageous offer be made, the de velopment should continue and the plant should be dedicated primarily to the production of materials for the fertilization of the soil -—1 1 .. ■■■ —-s Railways. j * V.) The railway* timing 1 he hint year have made hi III further progress In recuperation from the war. with in me gain* In efficiency and nhility ex peditiously to handle the traffic of the country. We have now passed through several periods of peak traf fir without the car shortage* which so frequently In the past ha\e brought hnvoc to our agricult tire and indus tries. The condition of many of our great freight tei iiiinitla Is still one of difficulty and results In Imposing large cost* on the public for inward hound freight, and on the railways! for outward-bound fieight. Owing | 16 the growth of our iai gt cities and the great Increase in the volume of traffic, particularly lit perishable*, the problem l* not only dtflh igr ©f solu tion. hut In some esses not wholly solvable by railway action alone. in my message last yeai I phasi/cd the nctendly for furthel legislation v\ltli o view to expediting tha cnnsollrlation of tun railway* into larger svsteme The principle of gov m nmeru rnntrnl of rates and profit*, now thoroughly lent tedded in nut go' nnnifin.il attitude toward natural ,1 monopolies such a* tin* railways. at once eliminate* the n»cd of <sunpetl tion by email unit* as i met hod nf rale adjustment. * *oinp«’t Itlon must It* preserved ns * stimulus to serv ice, but this will rxl>t and can be increased under enlarged systems Consequently the consolidation of the railway* into larger units for the pur pose of securing the euhstanl In 1 value* to the public which will come from larger operation has been thej logical conclusion of congress in It* previous enactments, aiul is also sup | ported by the bent opinion In the country. Such consolidation will a* j '-lira not only a greater element of competition a* to service, but It will afford economy In operation, greater liability In railway earnings, and more economical financing. It open* larg# possibilities of letter rquulUn tluii of rnt.es between different classes of traffic mo ns to relieve undue burdens upon ngi Ictiil oral products end raw materials genet ally, which mre now not possible without ruin to small units owing to the l«« k of dl'e« stty of tiafftc. It would also tend to eqimlUs raining* in such fashion j ;<s to reduce the importance of sec tion 15A, at which criticism, often misapplied, has been directed. A smaller number of units would offer less difficulties In labor adjustments and Would contribute much to the solution of terminal difficulties. The consolidations need to be car iled out with due regard to public interest and to the rights and estab lished life of various communities in our country. It does not seem to me necessary that we endeavor to antici pate any final plan or adhere to any artificial and unchangeable project which shall stipulate a fixed numh4p of systems, but rather we ought fin approach the problem with such a latitude of action that It can be work o'H out step by step in accordance! with a comprehensive consideration of public interest. Whether the nuxn ber of ^ultimate systems shall be more «>r less seems to me can only be de termined by time and actual experi ence in the development of such con solidations. Those portions of the present law contemplating consolidations are not fgjfHciently effective in producing ex peditious action and need amplifica tion of the authority of the Interstate Commerce commission, particularly In affording a period for voluntary pro posals to the commission and in sup plying government pressure to secure action after the expiration of such a period. There are other proposals before congress for amending the transpor tation acts. One of these contem plates a revision of the method of valuation for rate making purposes to be followed by a renewed valuation of the railways. The valuation* in stltuted by the Interstate t'ommerce commission 10 years ago have not yet been completed. They have cost the government an enormous sum, and they have imposed meat expenditure upon the railways, most of which has in effect come out of the public in increased rates. This work should not be abandoned or supplanted until Its results are known and can be con sidered. Another matter before the congress is legislation affecting the labor sec tions of tiie transportation act, Miu*h criticism has been directed at /the workings of tins section and. experi ence has shown that some useful amendment could be made to these provisions. It would be helpful if a plan could be adopted which, while retaining the practice of systematic collective bar gaining with conciliation and volun tary arbitration of labor differences, could also provide simplicity in rela tions and more direct local respon sibility of employes and managers. Hut such legislation will not meet the requirements of the situation unless It recognizes the principle that the public has a right to the uninterrupt ed service of transportation, and therefore a tight to be heard when there is danger that the nation may suffer great injury through ihe inter ruptlon of operations because of labor disputes, if these elements are not comprehended in proposed legislation, it would be better to gain further ex perience with the present organiza tion for dealing with these questions! before undertaking a change. Shipping Board L. . J The form of the organization of the Shipping board was based originally on its functions as a semijudicial body in regulation of rates. During the war It was loaded with enor mous administrative duties. It has been demonstrated time and again lhaf this form of organization results in Indecision, division of opinion and administrative functions, which make a wholly inadequate foundation for the conduct of a great business en terprise. The first principle In se curing the objective set out by con gress in building up the American merchant marine upon the great trade routes and subsequently riispos ing of It into private operation can not proceed with effectiveness unt.I the entire functions of the board are reorganized. The immediate re quirement Is to transfer into the Kmergency Fleet corporation the whole responsibility of operation of tile fleet and other properly. leaving to the Shipping board solely the duty of determining certain major policies which require deliberate action. The procedure under section of the merchant marine art has treated great difficulty and threatened frlc lion during the last 12 months. Its attempted application developed not only great opposition from exporters, I particularly as to burdens that may be Imposed upon agricultural prod ucts, but also great anxiety in the different seaport* as to the efTect upon their relative rate structures. This trouble will certainly recur K action is attempted under this sec tion. It Is uncertain in some of its terms and of great difficulty in inter pretation. It is my belief that action under this section should be su;-.iended un til the congress can reconsider the entire question in the light of the experieme that ha* been developed since its enactment. Nothing is so fundamental to the integrity of a republican form of government as honesty in all that te bates to the conduct of elections. I am of the opinion that the national laws governing the choice of mem hers of the congress should be extend ed to include appropriate representa tion of the respective parties at the ballot box and equality of represents lion on the various registration boards, wherever they exist. The Judiciary L_'_J The docket *>f the supreme court is becoming congested. At the open ing term last year it had .'92 rases, wiille this year it had «#&7 ruses. Justice long delayed Is Justice refus ed. l nle.*V the court be given power by preliminary and summary con sideration'to determine the import ante of cases, and by disposing of those which are not of public mo ment reserve Its time for the mote extended consideration of the re malnder. the congestion of the docket is likely to Increase. It is also de sirable th*rt the supreme court should have power to Improve and reform procedure in suits at law in the fed eral courts through the adoption of appropriate rule?. The judiciary committee of tin senate ho* reported favorably upon two bills providing for these reforms which should have the immediate favorable consider;) tion of tlie congress. 1 further recommend that provi sion he made for the appointment of a commission, to consist of three members of the federal judiciary and as many members of the bar. to ex amine the present criminal code of procedure ami recommend to the con gres« measure?* which may reform and expedite court procedure \tr the administration and enforcement of our criminal laws. * ---- Prison Reform. l. j I rending l>efore the congress Is s bill which has already passed one house providing for a refornintory to which rould he committed first offend er* and young men for the purpose of segregating them from contact with hardened criminal* and provid ing them with apecial training. In or der to reestablish In them the power to pursue a law abiding existence In the social and economic life of the nation. This is a matter of so much Importance as to warrant the early attention of the present session. Fur ther provision should nlso lie made, for a like reason, for a separate re formatory for women. National Police Bureau __ ReprrMMitativrn of th* Tntrrna tlonnl Pollco ronforonre will brlnu to tb* Attention of tb# ronsrro«* a pr<* po«A 1 for tbo #AtAbllabm^nt of a nn tional pollr# burfA'i. Puf'b Artlon would provide a central point for RAlherlnu. eompilinc. and Inter dis tributing t«» local police authorities much information whirh would be helpful in the prevention and deter tion of crime- 1 believe thi« bureau Is needed, and I recommend favor able consideration of th*« proposal District of Columbia Welfare. . j The welfare work of the District of Columbia lx administered bv sev eral different boards deullUK with charities and various correctional ef fori*. It would lr an Improvement if this work were con solid a fed and |»la« eil muler the till eetIon of a single rom mission. French Spoliation Claims. L_j\ During the last session of the eon* gi css legislation was introduced look ing to the payment of jhe remaining claims generally inferred to ns the French Minolta lion claims The con grrsi has provide*! for the pavnient of many similar claims. Those that remain unpaid have hern long pend ing. The beneficiaries thereunder have every reason to expect payment. Those claims have been examined by the court of claims and their validity and amount determined. The 1’nlted States ought to pay it* debts. 1 ie. omtnend action by the congress which will permit of ttjr payment of these remaining claims. The Wage Earner. j, Two very Important policies have been adopted by this country which, while extending theh benellts also In other directions, have been of .the utmost Importance t » the ware earn fc* *. One of these Is t lie protective tariff which enables our people, to live according to n beittr standard and receive a better rate of compensa tlon than any people, anv time, any* where on earth, ever enjoyed This saves the American market for th* product* nf the American workmen The other Is a |M>lb V of mo» e recent origin and sicks tn shield our wage earners from the disastrous competi tion of a Brest Influx of foreign peo pies This has been don# b; t hs ie •tilcllva immigration law. This saves the Vmerican .lot* for the Ameiir.tn workmen. I should like to *»*o the ndiotnist rat Ive foot ure* of this law rendered a little moie humane for the purpose of permitting thore al ready here u rrenter latitude In aecur li.fr admission if members of their twn families Hut 1 believe this law <n principle is necessary and sound, and destined to increase greatly the public welfare We muM maintain , our own economic position, >ve muit defend our own national Integrity. It i* crittfvi'iv to report that the pi ok res* of Inditalty. the enormous * increase in tndix tdital* productlvltv through la Iso saving device* and the high rale of wage* have all combined '• to fmutsh out people In genet a I aillt such an abundnnra not only of the i necessaries hut of the conveniences of life that we are by a natural evolu tmn »olvlnir our problem* of eronomt^^ffl and Boris 1 JUBflc*. ■ ■ - " " """ The Negro. These development* tow* brought about a very remarkable improve ment in tlie condition of the negro race. Gradually, but attrely, with the almost universal sympathy of those tiiunng whom they live, the colored people are working out their own destiny. 1 firmly believe that It I* better for all concerned that they should be cheerfully a.-coraeo int full constitutional rights, that they should he protected from all of those Impositions to which, from their po sition, they naturally fail a pr* , • specially from the crime of lynching, and that They should reielse every encouragement to 1 Jerome full par takers In ail dbe blessings of our common American citizenship. I Civil Service. The merit system* has long been recognized as the correct basis for employment in our civil service. 1 believe that first, second, and third i lass postmasters, and without cover ing In the present membership the field force of prohibition enforcement, should he brought within the classi fled service by statute law. othc wise the executive order of one ad ministration Is changed by the execu tive order of another administration and tlit tic real progress is made. What ever its defects, the merit system is certainly to be preferred to the spoils system. r Department Reorganization. W __ __J t One way to Have public money would be to pas* the pending bill for the reorganization of the various departments. This project ha* been pending for some time, and has had the most careful consideration of ex perts and the thorough study of a special congressional committee. This legislation is vital as a companion piece to the budget law. Legal au thority for a thorough reorganization of the federal structure with so latitude of action to the executive in the rearrangement of secondary fun' tions would make for continuing economy jn 1 he shift of government activities which must follow' every change in a developing country. Pp yond this many of the independent agencies of the government must b* placed under responsible cabinet ficials, if we are to have snfegua» of efficiency, economy, and probity. ™ Army and Navy. */ * V 1 Little has developed in relation to our national defense which need-, special attention. Progress Is con stantly being made in air navigation and requires pncouragenient? bnd development. Army aviators have made a succesful trip around the world, for which I recommend suit able recognition through provisions for promotion, compensation, and re tirement. I'nder the direction of the navy a new Zeppelin has l>een sue cgasfully brought from Europe across the Atlantic to our own country. Due to the eff.clent supervise"! of the secretary of war. the army of the t'niled States lias been 01 ganized with a small body of regulars and a moderate national guard and reserve. The defense test of September 12 demonstrated the efficiency of the operating plans. These methods anti operations are well worthy of con gressional support. S I'nder the limitation of armaments treaty a large saving in outlay and a considerable decrease in mainten ance of the navy has been accom plished. We should maintain the policy of constantly working toward the full treaty strength of the navy. Careful investigation is being made in this department of the relative im portance of aircraft, surface and sub marine vessels, in order that we may not fail to take advantage of all modern improvements for our na tional defense. A sjieo.'al commies, n also is investigating the problem of petroleum ofl for the navy, considei ing the best policy to Insure the fu* | tine ftuppli "f fuel oil and prevent thej threatened drainage of naval oil re serves, legislative action i* required' lo carrv on exper mepts In oil shale I reduction. «s large deposit* of this type tave been set aside for the use of the navy. We have been constantly besought to engage in compett*Ve armamen t Frequent reports will reach u« of the magnitude of the military equipment of other nations. .We shall do well to he little impressed by such reports or such actions. Any nation under taking to maintain a military estab lishment with aggressive and im perialistic designs will find itself se verely handicapped in the economic development of the world. I believe thoroughly in the army and navy, in adequate defense and preparation. But I am opposed to any policy of j competition in building and main- , tabling land or sea armaments. Our country has definitely relin quished ihe old standard of isealing I with other countries by terror and. j J force, and is definitely committee! to'\« the new standard of dealing with 1 them through friendship and under standing. This new policy should 1-e constantly kept in mind by the guid ing forces of the army and navy, 1 y the congress and by the country at large. I believe it holds a promise of great benefit to humanity. I shall re sist any attempt to resort to the old methods and the old standards. I am ' espe tally solicitous that foreign na- ' tions should comprehend th«* candor and sincerity with which w# have I adopted this position. While we J pose to maintain defensive and sup- ] pierntniary police forces by land and sea. and to train them through in- | spectlons and maneuvers upon appro priate occasions in order to maintain their efficiency, 1 wish every oilier nation to understand that ihis does net express anv unfriendliness or convey any hostile intent. 1 want the armed forces of America to be con sidered bv all people not as enemies but as friends, as the contribution which is made by this country' ft r ihe maintenance of the.peace and se ettrity of the world. J ^- X Veterans. L_> * With the authorisation for general hospitalisation of the veterans of all wars provided during the preaent year, tiie care anil treatment of those who have served their ■ ountrv in time of peril and the attitude of th< government toward them is not now so much one of needed legislation as one of careful, generous and humane administration. It will ever be recog nized that their welfare is of the first concern and always entitled to the most solicitous consideration on the part of their fellow citizens. They are organized in various associations, of which the chief and most repre sentative is the American I.eg on. Through iis officers the legion will present to '.lie i .ngresa numero .« suggestion for legislation. They rover such a wide variety of subjects that ;t is impossible to discuss them within the scope of this message. With many of the proposals I join in hearty ap proval and commend them all to tie sympathetic Investigation and consid eratlon of the congress /---—— > Foreign Relations. c 1 At no iveriod in the list yenf have nur foreign relation* been in *uch * satisfactory condition a* the' are at th* present time Our actions in •hr recent month* have greatly urengthened the American peltry of permanent pence with Independence Vhe attitude which our government took and maintained toward an ad lucintent of Kuropean reparation*. h\ pointing out that it war not a i» di lical but a business problem. Ini' .lemonstrated II* wl«dnm by It* actual results, We/deal re to see Rurope re stored that It may testime it* pro luctlvltj in the lnore»«e of industry snd it* support in the advance of .IvlliMtlon. We look with greflt gratification at the hopeful proepect if recuperation In Kurope through I lie Hawes plan. Such assistance i* all lie given through the action of I he public authorities and of oui t" i rate i itlgens, through friendly conn tel and cooperation, and through economic and financial auppoit. not For any warlike effort but f>r te productive enterprise, not to provide mean* for unsound government fi vanning but to establish sound bust eae administration*, should be tin lesltatinglv provided, litlmately nations, like Individuals in not depend upon each other tint mist detrend u|»on themselves. Koch .lie must work out Its own salvation IVe have every desire to help. Vtu; vlth all our resources we are power ess to gave units* our effort* meet vlth a constructive ie*pon*e. The iltuatton In our own country and gU! nc- 'hr vvoild ts on* that can '•* at Improved only by hard work and Sc 10* denial ]t is necessary to reduce ex oenditure*. increase savings and liquidate debts if i* in this dir*ctiop that there lies the greatest hope o! domestic tranquillity and tnterna tionai peace Our own rountry ought to furnish the leading example in this effort Our past adherence to this polio our constant refusal to nva t • tain a military establishment that could be thought to menace the se entity of others, our honorable deal ings with other nations whether great or small, has left us n the almost > constant enjoyment of peace • It is not necessiry to sties# the general desire of all the people of this count, v for the promotion of t-^vie 1^ is the leading principle of . 11 our foreign relations We have on every occasion iried to cooperate to this end in all ways that, were con sistent with out proper ndepende'’ - id our traditional policies. It will be my constant effort to maintain these principles, and to reinforce them by *i) appropriate agreement* and 1 re* t iee While we desire always to coopef-ste and to help, w# re equally delermlnevl to he Independ ent and free Right and truth and justice and humanitarian efforts will have the moral ttuppwrt of this couS lr\ all over the world. Hut w<* ik> not w ,*h to tvecome involved in tHa p,.ii;i. .1 (ontrove. *ie* of other*. Not is the country disposed to become a member of the lesiuie of nations or to assume the obHgatlona Impose,I by its covenant International Court. \mot ii < h** li*»'n (mo uf tin* nn»t nation* In advocating trUuinal*, or tli* »*ttl*m*nt of International tin* nit** of * \u»tlci»lil* rhatan*i Our *pr***ntath *» took a loading p*r» in | t hoa* i imfri m»wt » lit* It io«iilt*',t in tho i**i iUliahmorH ,*f Th* Hasu* trl Hinal rin.l later In providing for • permanent * oiirt of tntei national tua (Turn ta r«a< Xilfta. rdtwn On*) {
