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*)
{
