
 In reporting to the Congress the state of the Union, I find it impossible to characterize it other than one of general peace and prosperity. In some quarters our diplomacy is vexed with difficult and as yet unsolved problems, but nowhere are we met with armed conflict. If some occupations and areas are not flourishing, in none does there remain any acute chronic depression. What the country requires is not so much new policies as a steady continuation of those which are already being crowned with such abundant success. It can not be too often repeated that in common with all the world we are engaged in liquidating the war.
 In the present short session no great amount of new legislation is possible, but in order to comprehend what is most desirable some survey of our general situation is necessary. A large amount of time is consumed in the passage of appropriation bills. If each Congress in its opening session would make appropriations to continue for two years, very much time would be saved which could either be devoted to a consideration of the general needs of the country or would result in decreasing the work of legislation.
 
 Our present state of prosperity has been greatly promoted by three important causes, one of which is economy, resulting in reduction and reform in national taxation. Another is the elimination of many kinds of waste. The third is a general raising of the standards of efficiency. This combination has brought the perfectly astonishing result of a reduction in the index price of commodities and an increase in the index rate of wages. We have secured a lowering of the cost to produce and a raising of the ability to consume. Prosperity resulting from these causes rests on the securest of all foundations. It gathers strength from its own progress.
 In promoting this progress the chief part which the National Government plays lies in the field of economy. Whatever doubts may have been entertained as to the necessity of this policy and the beneficial results which would accrue from it to all the people of the Nation, its wisdom must now be considered thoroughly demonstrated. It may not have appeared to be a novel or perhaps brilliant conception, but it has turned out to be preeminently sound. It has  not failed to work. It has surely brought results. It does not have to be excused as a temporary expedient adopted as the lesser evil to remedy some abuse, it is not. a palliative seeking to treat symptoms, but a major operation for the, eradication at the source of a large number of social diseases.
 Nothing is easier than the expenditure of public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow it on somebody. But the results of extravagance are ruinous. The property of the country, like the freedom of the country, belongs to the people of the country. They have not empowered their Government to take a dollar of it except for a necessary public purpose. But if the Constitution conferred such right, sound economics would forbid it. Nothing is more, destructive of the progress of the Nation than government extravagance. It means an increase in the burden of taxation, dissipation of the returns from enterprise, a decrease in the real value of wages, with ultimate stagnation and decay. The whole theory of our institutions is based on the liberty and independence of the individual. He is dependent on himself for support and therefore entitled to the rewards of his own industry. He is not to be deprived of what he earns that others may be benefited by what they do not earn. What lie saves through his private effort is not to be wasted by Government extravagance.
 Our national activities have become so vast that it is necessary to scrutinize each item of public expenditure if we are to apply the principle of economy. At the last session we made an immediate increase in the annual budget of more than $100,000,000 in benefits conferred on the veterans of three wars, public buildings, and river and harbor improvement. Many projects are being broached requiring further large outlays. I am convinced that it would be greatly for the welfare of the country if we avoid at the present session all commitments except those of the most pressing nature. From a reduction of the debt and taxes will accrue a wider benefit to all the people of this country than from embarking on any new enterprise. When our war debt is decreased we shall have resources for expansion. Until that is accomplished we should confine ourselves to expenditures of the most urgent necessity.
 The Department of Commerce has performed a most important function in making plans and securing support of all kinds of national enterprise for the elimination of waste. Efficiency has been greatly promoted through good management and the constantly increasing cooperation of the wage earners throughout the whole realm of private business. It is my opinion that this whole development has been predicated on the foundation of a protective tariff.
 
 As a result of economy of administration by the Executive and of appropriation by the Congress, the end of this fiscal year will leave a surplus in the Treasury estimated at $383,000,000. Unless otherwise ordered, such surplus is used for the retirement of the war debt. A bond which can be retired today for 100 cents will cost the, people 104 1/4 cents to retire a year from now. While I favor a speedy reduction of the debt as already required by law and in accordance with the promises made to the holders of our Liberty bonds when they were issued, there is no reason why a balanced portion of surplus revenue should not be applied to a reduction of taxation. It can not be repeated too often that the enormous revenues of this Nation could not be collected without becoming a charge on all the people whether or not they directly pay taxes. Everyone who is paying or the bare necessities of fool and shelter and clothing, without considering the better things of life, is indirectly paying a national tax. The nearly 20,000,000 owners of securities, the additional scores of millions of holders of insurance policies and depositors in savings banks, are all paying a national tax. Millions of individuals and corporations are making a direct contribution to the National Treasury which runs from 11/2 to 25 per cent of their income, besides a number of special requirements, like automobile and admission taxes. Whenever the state of the Treasury will permit, I believe in a reduction of taxation. I think the taxpayers are entitled to it. But I am not advocating tax reduction merely for the benefit of the taxpayer; I am advocating it for the benefit of the country.
 If it appeared feasible, I should welcome permanent tax reduction at this time. The estimated surplus, however, for June 30, 1928, is not much larger than is required in a going business of nearly $4,000,000,000. We have had but a few months' experience under the present revenue act and shall need to know what is developed by the returns of income produced under it, which are not required t o be made until about the time this session terminates, and what the economic probabilities of the country are in the latter part of 1927, before we can reach any justifiable conclusion as to permanent tax reduction. Moreover the present surplus results from many nonrecurrent items. Meantime, it is possible to grant some real relief by a simple measure making reductions in the payments which accrue on the 15th of March and June, 1927. 1 am very strongly of the conviction that this is so much a purely business matter that it ought not to be dealt with in a partisan spirit. The Congress has already set the notable example of treating tax problems without much reference to party, which might well be continued. What I desire to advocate most earnestly is relief for the country from unnecessary tax burdens. We can not secure that if we stop to engage in a partisan controversy. As I do not think any change in the special taxes, or tiny permanent reduction is practical, I therefore urge both parties of the House Ways and Means Committee to agree on a bill granting the temporary relief which I have indicated. Such a reduction would directly affect millions of taxpayers, release large sums for investment in new enterprise, stimulating industrial production and agricultural consumption, and indirectly benefiting every family in the whole country. These are my convictions stated with full knowledge that it is for the Congress to decide whether they judge it best to make such a reduction or leave the surplus for the present year to be applied to retirement of the war debt. That also is eventually tax reduction.
 
 It is estimated that customs receipts for the present fiscal year will exceed $615,000,000, the largest which were ever secured from that source. The value of our imports for the last fiscal year was $4,466,000,000, an increase of more than 71 per cent since the present tariff law went into effect. Of these imports about 65 per cent, or, roughly, $2,900,000,000, came in free of duty, which means that the United States affords a duty-free market to other countries almost equal in value to the total imports of Germany and greatly exceeding the total imports of France. We have admitted a greater volume of free imports than any other country except England.
 We are, therefore, levying duties on about $1,550,000,000 of imports. Nearly half of this, or $700,000,000, is subject to duties for the protection of agriculture and have their origin in countries other than Europe. They substantially increased the prices received by our farmers for their produce. About $300,000.000 more is represented by luxuries such as costly rugs, furs, precious stones, etc. This leaves only about $550,000,000 of our imports under a schedule of duties which is in general under consideration when there is discussion of lowering the tariff. While the duties on this small portion, representing only about 12 per cent of our imports, undoubtedly represent the difference between a fair degree of prosperity or marked depression to many of our industries and the difference between good pay and steady work or wide unemployment to many of our wage earners, it is impossible to conceive how other countries or our own importers could be greatly benefited if these duties are reduced. Those who are starting an agitation for a reduction of tariff duties, partly at least for the benefit of those to whom money has been lent abroad, ought to know that there does not seem to be a very large field within the area of our imports in which probable reductions would be advantageous to foreign goods. Those who wish to benefit foreign producers are much more likely to secure that result by continuing the present enormous purchasing power which comes from our prosperity that hall?' increased our imports over 71 per cent in four years than from any advantages that are likely to accrue from a general tariff reduction.
 
 The important place which agriculture holds in the economic and social life of the Nation can not be overestimated. The National Government is justified in putting forth every effort to make the open country a desirable place to live. No condition meets this requirement which fails to supply a fair return on labor expended and capital invested. While some localities and some particular crops furnish exceptions, in general agriculture is continuing to make progress in recovering from the depression of 1921 and 1922. Animal products and food products are in a more encouraging position, while cotton, due to the high prices of past years supplemented by ideal weather conditions, has been stimulated to a point of temporary over production. Acting on the request of the cotton growing interests, appointed a committee to assist in carrying out their plans. As it result of this cooperation sufficient funds have been pledged to finance the storage and carrying of 4,000,000 bales of cotton. Whether those who own the cotton are willing to put a part of their stock into this plan depends on themselves. The Federal Government has cooperated in providing ample facilities. No method of meeting the situation would be adequate which does not contemplate a reduction of about one-third in the acreage for the coming year. The responsibility for making the plan effective lies with those who own and finance cotton and cotton lands.
 The Department of Agriculture estimates the net income of agriculture for the year 1920-21 at only $375,000,000; for 1924-25, $2,656,000,000; for 1925-26, $2,757,000,000. This increase has been brought about in part by the method already referred to, of Federal tax reduction, the elimination of waste, and increased efficiency in industry. The wide gap that existed a few years ago between the index price of agricultural products and the index price of other products has been gradually closing up, though the recent depression in cotton has somewhat enlarged it. Agriculture had on the whole been going higher while industry had been growing lower. Industrial and commercial activities, being carried on for the most part by corporations, are taxed at a much higher rate than farming, which is carried on by individuals. This will inevitably make industrial commodity costs high while war taxation lasts. It is because of this circumstance that national tax reduction has a very large indirect benefit upon the farmer, though it can not relieve him from the very great burden of the local taxes which he pays directly. We have practically relieved the farmer of any Federal income tax.
 There is agreement on all sides that some portions of our agricultural industry have lagged behind other industries in recovery from the war and that further improvement in methods of marketing of agricultural products is most desirable. There is belief also that the Federal Government can further contribute to these ends beyond the many helpful measures taken during the last five years through the different acts of Congress for advancing the interests of the farmers.
 The packers and stockyards act,
 Establishing of the intermediate credit banks for agricultural purposes,
 The Purnell Act for agricultural research,
 The Capper-Volstead Cooperative Marketing Act,
 The cooperative marketing act of 1926,
 Amendments to the warehousing act,
 The enlargement of the activities of the Department of Agriculture,
 Enlargement of the scope of loans by the Farm Loan Board,
 The tariff on agricultural products,
 The large Federal expenditure in improvement of waterways and highways,
 The reduction of Federal taxes, in all comprise a great series of governmental actions in the advancement of the special interest of agriculture.
 In determination of what further measures may be undertaken it seems to me there are certain pitfalls which must be avoided and our test in avoiding them should be to avoid disaster to the farmer himself.
 Acting upon my recommendation, the Congress has ordered the interstate Commerce Commission to investigate the freight-rate structure, directing that such changes shall be made in freight rates as will promote freedom of movement of agricultural products. Railroad consolidation which I am advocating would also result in a situation where rates could be made more advantageous for farm produce, as has recently been done in the revision of rates on fertilizers in the South. Additional benefit will accrue from the development of our inland waterways. The Mississippi River system carries a commerce of over 50,000,000 tons at a saving of nearly $18,000,000 annually. The Inland Waterways Corporation operates boats on 2,500 miles of navigable streams and through its relation with 165 railroads carries freight into and out of 45 States of the Union. During the past six months it has handled over 1,000,000 bushels of grain monthly and by its lower freight rates has raised the price of such grain to the farmer probably 21/2 cents to 3 cents a bushel. The highway system on which the Federal Government expends about $85,000,000 a year is of vital importance to the rural regions.
 The advantages to be derived from a more comprehensive and less expensive system. of transportation for agriculture ought to be supplemented by provision for an adequate supply of fertilizer at a lower cost than it is at. present obtainable. This advantage we are attempting to secure by the proposed development at Muscle Shoals, and there are promising experiments being made in synthetic chemistry for the production of nitrates.
 A survey should be made of the relation of Government grazing lands to the livestock industry. Additional legislation is desirable more definitely to establish the place of grazing in the administration of the national forests, properly subordinated to their functions of producing timber and conserving the water supply. Over 180,000,000 acres of grazing lands are still pastured as commons in the public domain with little or no regulation. This has made their use so uncertain that it has contributed greatly to the instability of the livestock industry. Very little of this land is suited to settlement or private ownership. Some plan ought to be adopted for its use in grazing, corresponding broadly to that already successfully applied to the national forests.
 The development of sound and strong cooperative associations is of fundamental importance to our agriculture. It is encouraging to note, therefore, that a vigorous and healthy growth in the cooperative movement is continuing. Cooperative associations reporting to the Department of Agriculture at the end of 1925 had on their membership rolls a total of 2,700,000 producers. Their total business in 1925 amounted to approximately $2,400,000,000, compared with $635,800,000 in 1915. Legislative action to assist cooperative associations and supplement their efforts was passed at the last session of Congress. Important credit measures were also provided by Congress in 1923 which have been of inestimable value to the cooperative associations. Although the Federal credit agencies have served agriculture well, I think it may be possible to broaden and strengthen the service of these institutions.
 Attention is again directed to the surplus problem of agriculture by the present cotton situation. Surpluses often affect prices of various farm commodities in a disastrous manner, and the problem urgently demand?, a solution. Discussions both in and out of Congress during the past few years have given us a better understanding of the subject, and it is my hope that out of the various proposals made the basis will be found for a sound and effective solution upon which agreement can be reached. In my opinion cooperative marketing associations will be important aids to the ultimate solution of the problem. It may well be, however, that additional measures will be needed to supplement their efforts. I believe all will agree that such measures should not conflict with the best interests of the cooperatives, but rather assist and strengthen them. In working out this problem to any sound conclusion it is necessary to avoid putting the Government into the business of production or marketing or attempting to enact legislation for the purpose of price fixing. The farmer does not favor any attempted remedies that partake of these elements. He has a sincere and candid desire for assistance. If matched by an equally sincere and candid consideration of the different remedies proposed ' a sound measure of relief ought to result. It is unfortunate that no general agreement has been reached by the various agricultural interests upon any of the proposed remedies. Out of the discussion of various proposals which can be had before the Committees of Agriculture some measure ought to be perfected which would be generally satisfactory.
 Due to the emergency arising from a heavy tropical storm in southern Florida, I authorized the Secretary of Agriculture to use certain funds in anticipation of legislation to enable the farmers in that region to plant their crops. The department will present a bill ratifying the loans which were made for this purpose.
 Federal legislation has been adopted authorizing the cooperation of the Government with States and private owners in the protection of forest lands from fire. This preventive measure is of such great importance that I have recommended for it an increased appropriation.
 Another preventive measure of great economic and sanitary importance is the eradication of tuberculosis in cattle. Active work is now in progress in one-fourth of the counties of the United States to secure this result. Over 12,000,000 cattle have been under treatment, and the average degree of infection has fallen from 4.9 per cent to 2.8 per cent. he Federal Government is making substantial expenditures for this purpose.
 Serious damage is threatened to the corn crop by the European corn borer. Since 1917 it has spread from eastern New England westward into Indiana and now covers about 100,000 square miles. It is one of the most formidable pests because it spreads rapidly and is exceedingly difficult of control. It has assumed a menace that is of national magnitude and warrants the Federal Government in extending its cooperation to the State and local agencies which are attempting to prevent its further spread and secure its eradication.
 The whole question of agriculture needs most careful consideration. In the past few years the Government has given this subject more attention than any other and has held more consultations in relation to it than on any other subject. While the Government is not to be blamed for failure to perform the impossible, the agricultural regions are entitled to know that they have its constant solicitude and sympathy. Many of the farmers are burdened with debts and taxes which they are unable to carry. We are expending in this country many millions of dollars each year to increase farm production. We ought now to put more emphasis on the question of farm marketing. If a sound solution of a permanent nature can be found for this problem, the Congress ought not to hesitate to adopt it.
 
 In previous messages I have referred to the national importance of the proper development of our water resources. The great projects of extension of the Mississippi system, the protection an development of the lower Colorado River, are before Congress, and I have previously commented upon them. I favor the necessary legislation to expedite these projects. Engineering studies are being made for connecting the Great Lakes with the North Atlantic either through an all-American canal or by way of the St. Lawrence River. These reports will undoubtedly be before the Congress during its present session. It is unnecessary to dwell upon the great importance of such a waterway not only to our mid-continental basin but to the commerce and development of practically the whole Nation. Our river and harbor improvement should be continued in accordance with the present policy. Expenditure of this character is compatible with economy; it is in the nature of capital investment. Work should proceed on the basic trunk lines if this work is to be a success. If the country will be content to be moderate and patient and permit improvements to be made where they will do the greatest general good, rather than insisting on expenditures at this time on secondary projects, our internal Waterways can be made a success. If proposes legislation results in a gross manifestation of local jealousies and selfishness, this program can not be carried out. Ultimately we can take care of extensions, but our first effort should be confined to the main arteries.
 Our inland commerce has been put to great inconvenience and expense by reason of the lowering of the water level of the Great Lakes. This is an international problem on which competent engineers are making reports. Out of their study it is expected that a feasible method will be developed for raising the level to provide relief for our commerce and supply water for drainage. Whenever a practical plan is presented it ought to be speedily adopted.
 
 It is increasingly evident that the Federal Government must in the future take a leading part in the impounding of water for conservation with incidental power for the development of the irrigable lands of the and region. The unused waters of the West are found mainly in large rivers. Works to store and distribute these have such magnitude and cost that they are not attractive to private enterprise. Water is the irreplaceable natural resource. Its precipitation can not be increased. Its storage on the higher reaches of streams, to meet growing needs, to be used repeatedly as it flows toward the seas, is a practical and prudent business policy.
 The United States promises to follow the course of older irrigation countries, where recent important irrigation developments have been carried out as national undertakings. It is gratifying, therefore, that conditions on Federal reclamation projects have become satisfactory. The gross value of crop, grown with water from project works increased from $110,000,000 in 1924 to $131,000,000 in 1925. The adjustments made last year by Congress relieved irrigators from paying construction costs on unprofitable land, and by so doing inspired new hope and confidence in ability to meet the payments required. Construction payments by water users last year were the largest in the history of the bureau.
 The anticipated reclamation fund will be fully absorbed for a number of years in the completion of old projects and the construction of projects inaugurated in the past three years. We should, however, continue to investigate and study the possibilities of a carefully planned development of promising projects, logically of governmental concern because of their physical magnitude, immense cost, and the interstate and international problems involved. Only in this way may we be fully prepared to meet intelligently the needs of our fast-growing population in the years to come.
 
 It would be difficult to conceive of any modern activity which contributes more to the necessities and conveniences of life than transportation. Without it our present agricultural production and practically all of our commerce would be completely prostrated. One of the large contributing causes to the present highly satisfactory state of our economic condition is the prompt and dependable service, surpassing all our previous records, rendered by the railroads. This power has been fostered by the spirit of cooperation between Federal and State regulatory commissions. To render this service more efficient and effective and to promote a more scientific regulation, the process of valuing railroad properties should be simplified and the primary valuations should be completed as rapidly as possible. The problem of rate reduction would be much simplified by a process of railroad consolidations. This principle has already been adopted as Federal law. Experience has shown that a more effective method must be provided. Studies have already been made and legislation introduced seeking to promote this end. It would be of great advantage if it could be taken up at once and speedily enacted. The railroad systems of the country and the convenience of all the people are waiting on this important decision.
 
 It is axiomatic that no agricultural and industrial country can get the full benefit of its own advantages without a merchant marine. We have been proceeding under the act of Congress that contemplates the establishment of trade routes to be ultimately transferred to private ownership and operation. Due to temporary conditions abroad and at home we have a large demand just now for certain types of freight vessels. Some suggestion has been made for new construction. I do not feel that we are yet warranted in entering, that field. Such ships as we might build could not be sold after they are launched for anywhere near what they would cost. We have expended over $250,000,000 out of the public Treasury in recent years to make up the losses of operation, not counting the depreciation or any cost whatever of our capital investment. The great need of our merchant marine is not for more ships but for more freight.
 Our merchants are altogether too indifferent about using American ships for the transportation of goods which they send abroad or bring home. Some of our vessels necessarily need repairs, which should be made. I do not believe that the operation of our fleet is as economical and efficient as it could be made if placed under a single responsible head, leaving the Shipping Board free to deal with general matters of policy and regulation.
 
 The Department of Commerce has for some years urgently presented the necessity for further legislation in order to protect radio listeners from interference between broadcasting stations and to carry out other regulatory functions. Both branches of Congress at the last session passed enactments intended to effect such regulation, but the two bills yet remain to be brought into agreement and final passage.
 Due to decisions of the courts, the authority of the department under the law of 1912 has broken down; many more stations have been operating than can be accommodated within the limited number of wave lengths available; further stations are in course of construction; many stations have departed from the scheme of allocation set down by the department, and the whole service of this most important public function has drifted into such chaos as seems likely, if not remedied, to destroy its great value. I most urgently recommend that this legislation should be speedily enacted.
 I do not believe it is desirable to set tip further independent agencies in the Government. Rather I believe it advisable to entrust the important functions of deciding who shall exercise the privilege of radio transmission and under what conditions, the assigning of wave lengths and determination of power, to a board to be assembled whenever action on such questions becomes necessary. There should be right of appeal to the courts from the decisions of such board. The administration of the decisions of the board and the other features of regulation and promotion of radio in the public interest, together with scientific research, should remain in the Department of Commerce. Such an arrangement makes for more expert, more efficient, and more economical administration that an independent agency or board, whose duties, after initial stages, require but little attention, in which administrative functions are confused with semijudicial functions and from which of necessity there must be greatly increased personnel and expenditure.
 
 The great body of our people are made up of wage earners. Several hundred thousands of them are on the pay rolls of the United States Government. Their condition very largely is fixed by legislation. We have recently provided increases in compensation under a method of reclassification and given them the advantage of a liberal retirement system as a support for their declining years. Most of them are under the merit system, which is a guaranty of  their intelligence, and the efficiency of their service is a demonstration of their loyalty. The Federal Government should continue to set a good example for all other employers.
 In the industries the condition of the wage earner has steadily improved. The 12-hour day is almost entirely unknown. Skilled labor is well compensated. But there are unfortunately a multitude of workers who have not yet come to share in the general prosperity of the Nation. Both the public authorities and private enterprise should be solicitous to advance the welfare of this class. The Federal Government has been seeking to secure this end through a protective tariff, through restrictive immigration, through requiring safety devices for the prevention of accidents, through the granting of workman's compensation, through civilian vocational rehabilitation and education, through employment information bureaus, and through such humanitarian relief as was provided in the maternity and infancy legislation. It is a satisfaction to report that a more general condition of contentment exists among wage earners and the country is more free from labor disputes than it has been for years. While restrictive immigration has been adopted in part for the benefit of the wage earner, and in its entirety for the benefit of the country, it ought not to cause a needless separation of families and dependents from their natural source of support contrary to the dictates of humanity.
 
 No progress appears to have been made within large areas of the bituminous coal industry toward creation of voluntary machinery by which greater assurance can be given to the public of peaceful adjustment of wage difficulties such as has been accomplished in the anthracite industry. This bituminous industry is one of primary necessity and bears a great responsibility to the Nation for continuity of supplies. As the wage agreements in the unionized section of the industry expire on April 1 next, and as conflicts may result which may imperil public interest, and have for many years often called for action of the Executive in protection of the public, I again recommend the passage of such legislation as will assist the Executive in dealing with such emergencies through a special temporary board of conciliation and mediation and through administrative agencies for the purpose of distribution of coal and protection of the consumers of coal from profiteering. At present the Executive is not only without authority to act but is actually prohibited by law from making any expenditure to meet the emergency of a coal famine.
 
 The Federal courts hold a high position in the administration of justice in the world. While individual judicial officers have sometimes been subjected to just criticism, the courts as a whole have maintained an exceedingly high standard. The Congress may well consider the question of supplying fair salaries and conferring upon the Supreme Court the same rule-making power on the law side of the district courts that they have always possessed on the equity side. A bill is also pending providing for retirement after a certain number of years of service, although they have not been consecutive, which should have your favorable consideration. These faithful servants of the Government are about the last that remain to be provided for in the postwar readjustments.
 
 There has been pending in Congress for nearly three years banking legislation to clarify the national bank act and reasonably to increase the powers of the national banks. I believe that within the limitation of sound banking principles Congress should now and for the future place the national banks upon a fair equality with their competitors, the State banks, and I trust that means may be found so that the differences on branch-banking legislation between the Senate and the House of Representatives may be settled along sound lines and the legislation promptly enacted.
 It would be difficult to overestimate the service which the Federal reserve system has already rendered to the country. It is necessary only to recall the chaotic condition of our banking organization at the time the Federal reserve system was put into operation. The old system consisted of a vast number of independent banking units, with scattered bank reserves which never could be mobilized in times of greatest need. In spite of vast banking resources, there was no coordination of reserves or any credit elasticity. As a consequence, a strain was felt even during crop-moving periods and when it was necessary to meet other seasonal and regularly recurring needs.
 The Federal reserve system is not a panacea for all economic or financial ills. It can not prevent depression in certain industries which are experiencing overexpansion of production or contraction of their markets. Its business is to furnish adequate credit and currency facilities. This it has succeeded in doing, both during the war and in the more difficult period of deflation and readjustment which followed. It enables us to look to the future with confidence and to make plans far ahead, based on the belief that the Federal reserve system will exercise a steadying influence on credit conditions and thereby prevent tiny sudden or severe reactions from the period of prosperity which we are now enjoying. In order that these plans may go forward, action should be taken at the present session on the question of renewing the banks' charters and thereby insuring a continuation of the policies and present usefulness of the Federal reserve system.
 
 I am in favor of reducing, rather than expanding, Government bureaus which seek to regulate and control the business activities of the people. Everyone is aware that abuses exist and will exist so long as we are limited by human imperfections. Unfortunately, human nature can not be changed by an act of the legislature. When practically the sole remedy for many evils lies in the necessity of the people looking out for themselves and reforming their own abuses, they will find that they are relying on a false security if the Government assumes to hold out the promise that it is looking out for them and providing reforms for them. This principle is preeminently applicable to the National Government. It is too much assumed that because an abuse exists it is the business of the National Government to provide a remedy. The presumption should be that it is the business of local and State governments. Such national action results in encroaching upon the salutary independence of the States and by undertaking to supersede their natural authority fills the land with bureaus and departments which are undertaking to do what it is impossible for them to accomplish and brings our whole system of government into disrespect and disfavor. We ought to maintain high standards. We ought to punish wrongdoing. Society has not only the privilege but the absolute duty of protecting itself and its individuals. But we can not accomplish this end by adopting a wrong method. Permanent success lies in local, rather than national action. Unless the locality rises to its own requirements, there is an almost irresistible impulse for the National Government to intervene. The States and the Nation should both realize that such action is to be adopted only as a last resort.
 
 The social well-being of our country requires our constant effort for the amelioration of race prejudice and the extension to all elements of equal opportunity and equal protection under the laws which are guaranteed by the. Constitution. The Federal Government especially is charged with this obligation in behalf of the colored people of the Nation. Not only their remarkable progress, their devotion and their loyalty, but, our duty to ourselves under our claim that we are an enlightened people requires us to use all our power to protect them from the crime of lynching. Although violence of this kind has very much decreased, while any of it remains we can not justify neglecting to make every effort to eradicate it by law.
 The education of the colored race under Government encouragement is proceeding successfully and ought to have continuing support. An increasing need exists for properly educated and trained medical skill to be devoted to the service of this race.
 
 This Government holds in sacred trusteeship islands which it has acquired in the East and West Indies. In all of them the people are more prosperous than at any previous time. A system of good roads, education, and general development is in progress. The people are better governed than ever before and generally content.
 In the Philippine Islands Maj. Gen. Leonard Wood has been Governor General for five years and has administered his office with tact and ability greatly to the success of the Filipino people. These are a proud and sensitive race, who are making such progress with our cooperation that we can view the results of this experiment with great satisfaction. As we are attempting to assist this race toward self-government, we should look upon their wishes with great respect, granting their requests immediately when they are right, yet maintaining a frank firmness in refusing when they are wrong. We shall measure their progress in no small part by their acceptance of the terms of the organic law under which the islands are governed and their faithful observance of its provisions. Need exists for clarifying the duties of the auditor and declaring them to be what everyone had supposed they were. We have placed our own expenditures under the supervision of the Comptroller General. It is not likely that the expenditures in the Philippine Islands need less supervision than our own. The Governor General is hampered in his selection of subordinates by the necessity of securing a confirmation, which has oftentimes driven him to the expediency of using Army officers in work for which civilian experts would be much better fitted. Means should be provided for this and such other purposes as he may require out of the revenue which this Government now turns back to the Philippine treasury.
 In order that these possessions might stiffer no seeming neglect, I have recently sent Col. Carmi A Thompson to the islands to make a survey in cooperation with the Governor General to suggest what might be done to improve conditions. Later, I may make a more extended report including recommendations. The economic development of the islands is very important. They ought not to be turned back to the people until they are both politically fitted for self-government and economically independent. Large areas are adaptable to the production of rubber. No one contemplates any time in the future either under the present or a more independent form of government when we should not assume some responsibility for their defense. For their economic advantage, for the employment of their people, and as a contribution to our power of defense which could not be carried on without rubber, I believe this industry should be encouraged. It is especially adapted to the Filipino people themselves, who might cultivate it individually on a small acreage. It could be carried on extensively by American capital in a way to furnish employment at good wages. I am opposed to the promotion of any policy that does not provide for absolute freedom on the part of the wage earners and do not think we should undertake to give power for large holdings of land in the islands against the opposition of the people of the locality. Any development of the islands must be solely with the first object of benefiting the people of the islands. At an early day, these possessions should be taken out from under all military control and administered entirely on the civil side of government.
 
 Our policy of national defense is not one of making war, but of insuring peace. The land and sea force of America, both in its domestic and foreign implications, is distinctly a peace force. It is an arm of the police power to guarantee order and the execution of the law at home and security to our citizens abroad. No self-respecting nation would neglect to provide an army and navy proportionate to its population, the extent of its territory, and the dignity of the place which it occupies in the world. When it is considered that no navy in the world, with one exception, approaches ours and none surpasses it, that our Regular Army of about 115,000 men is the equal of any other like number of troops, that our entire permanent and reserve land and sea force trained and training consists of a personnel of about 610,000, and that our annual appropriations are about $680,000,000 a year, expended under the direction of an exceedingly competent staff, it can not be said that our country is neglecting its national defense. It is true that a cult of disparagement exists, but that candid examination made by the Congress through its various committees has always reassured the country and demonstrated that it is maintaining the most adequate defensive forces in these present years that it has ever supported in time of peace.
 This general policy should be kept in effect. Here and there temporary changes may be made in personnel to meet requirements in other directions. Attention should be given to submarines, cruisers, and air forces. Particular points may need strengthening, but as a whole our military power is sufficient.
 The one weak place in the whole line is our still stupendous war debt. In any modern campaign the dollars are the shock troops. With a depleted treasury in the rear, no army can maintain itself in the field. A country loaded with debt is a country devoid of the first line of defense. Economy is the handmaid of preparedness. If we wish to be able to defend ourselves to the full extent of our power in the future, we shall discharge as soon as possible the financial burden of the last war. Otherwise we would face a crisis with a part of our capital resources already expended.
 The amount and kind of our military equipment is preeminently a question for the decision of the Congress, after giving due consideration to the advice of military experts and the available public revenue. Nothing is more laudable than the cooperation of the agricultural and industrial resources of the country for the purpose of supplying the needs of national defense. In time of peril the people employed in these interests volunteered in a most self-sacrificing way, often at the nominal charge of a dollar a year. But the Army and Navy are not supported for the benefit of supply concerns; supply concerns are supported for the benefit of the Army and Navy. The distribution of orders on what is needed from different concerns for the purpose of keeping up equipment and organization is perfectly justified, but any attempt to prevail upon the Government to purchase beyond its needs ought not to be tolerated. It is eminently fair that those who deal with the Government should do so at a reasonable profit. However, public money is expended not that some one may profit by it, but in order to serve a public purpose.
 While our policy of national defense will proceed in order that we may be independent and self-sufficient, I am opposed to engaging in any attempt at competitive armaments. No matter how much or how little some other country may feel constrained to provide, we can well afford to set the example, not of being dictated to by others, but of adopting our own standards. We are strong enough to pursue that method, which will be a most wholesome model for the rest of the world. We are eminently peaceful, but we are by no means weak. While we submit our differences with others, not to the adjudication of force, but of reason, it is not because we are unable to defend our rights. While we are doing our best to eliminate all resort to war for the purpose of settling disputes, we can not but remember that the peace we now enjoy had to be won by the sword and that if the rights of our country are to be defended we can not rely for that purpose upon anyone but ourselves. We can not shirk the responsibility, which is the first requisite of all government, of preserving its own integrity and maintaining the rights of its own citizens. It is only in accordance with these principles that we can establish any lasting foundations for an honorable and permanent peace.
 It is for these reasons that our country, like any other country, proposes to provide itself with an army and navy supported by a merchant marine. Yet these are not for competition with any other power. For years we have besought nations to disarm. We have recently expressed our willingness at Geneva to enter into treaties for the limitation of all types of warships according to the ratio adopted at the Washington Conference. This offer is still pending. While we are and shall continue to be armed it is not as a menace, but rather a common assurance of tranquility to all the peaceloving people of the world. For us to do any less would be to disregard our obligations, evade our responsibilities, and jeopardize our national honor.
 
 This country, not only because it is bound by honor but because of the satisfaction derived from it, has always lavished its bounty upon its veterans. For years a service pension has been bestowed upon the Grand Army on reaching a certain age. Like provision has been made for the survivors of the Spanish War. A liberal future compensation has been granted to all the veterans of the World War. But it is in the case of the, disabled and the dependents that the Government exhibits its greatest solicitude. This work is being well administered by the Veterans' Bureau. The main unfinished feature is that of hospitalization. This requirement is being rapidly met. Various veteran bodies will present to you recommendations which should have your careful consideration. At the last session we increased our annual expenditure for pensions and relief on account of the veterans of three wars. While I approve of proper relief for all suffering, I do not favor any further extension of our pension system at this time.
 
 We still have in the possession of the Government the alien property. It has always been the policy of America to hold that private enemy property should not be confiscated in time of war. This principle we have scrupulously observed. As this property is security for the claims of our citizens and our Government, we can not relinquish it without adequate provision for their reimbursement. Legislation for the return of this property, accompanied by suitable provisions for the liquidation of the claims of our citizens and our Treasury, should be adopted. If our Government releases to foreigners the security which it holds for Americans, it must at the same time provide satisfactory safeguards for meeting American claims.
 
 The duly authorized public authorities of this country have made prohibition the law of the land. Acting under the Constitution the Congress and the legislatures of practically all the, States have adopted legislation for its enforcement. Some abuses have arisen which require reform. Under the law the National Government has entrusted to the Treasury Department the especial duty of regulation and enforcement. Such supplementary legislation as it requires to meet existing conditions should be carefully and speedily enacted. Failure to support the Constitution and observe the law ought not to be tolerated by public opinion. Especially those in public places, who have taken their oath to support the Constitution, ought to be most scrupulous in its observance. Officers of the Department of Justice throughout the country should be vigilant in enforcing the law, but local authorities, which had always been mainly responsible for the enforcement of law in relation to intoxicating liquor, ought not to seek evasion by attempting to shift the burden wholly upon the Federal agencies. Under the Constitution the States are jointly charged with the Nation in providing for the enforcement of the prohibition amendment. Some people do not like the amendment, some do not like other parts of the Constitution, some do not like any of it. Those who entertain such sentiments have a perfect right to seek through legal methods for a change. But for any of our inhabitants to observe such parts of the Constitution as they like, while disregarding others, is a doctrine that would break down all protection of life and property and destroy the American system of ordered liberty.
 
 The foreign policy of this Government is well known. It is one of peace based on that mutual respect that arises from mutual regard for international rights arid the discharge of international obligations. It is our purpose to promote understanding and good will between ourselves and all other people. The American people are altogether lacking in an appreciation of the tremendous good fortune that surrounds their international position. We have no traditional enemies. We are not embarrassed over any disputed territory. We have no possessions that are coveted by others; they have none that are coveted by us. Our borders are unfortified. We fear no one; no one fears us. All the world knows that the whole extent of our influence is against war and in favor of peace, against the use of force and in favor of negotiation, arbitration, and adjudication as a method of adjusting international differences. We look with disfavor upon all aggressive warfare. We are strong enough so that no one can charge us with weakness if we are slow to anger. Our place is sufficiently established so that we need not be sensitive over trifles. Our resources, are large enough so that we can afford to be generous. At the same time we are a nation among nations and recognize a responsibility not only to ourselves, but in the interests of a stable and enlightened civilization, to protect and defend the international rights of our Government and our citizens.
 It is because of our historical detachment and the generations of comparative indifference toward it by other nations that our public is inclined to consider altogether too seriously the reports that we are criticized abroad. We never had a larger foreign trade than at the present time. Our good offices were never more sought and the necessity for our assistance and cooperation was never more universally declared in any time of peace. We know that the sentiments which we entertain toward all other nations are those of the most sincere friendship and good will and of all unbounded desire to help, which we are perfectly willing to have judged by their fruits. In our efforts to adjust our international obligations we have met with a response which, when everything is considered, I believe history will record as a most remarkable and gratifying demonstration of the sanctity with which civilized nations undertake to discharge their mutual obligations. Debt settlements have been negotiated with practically all of those who owed us and all finally adjusted but two, which are, in process of ratification. When we consider the real sacrifice that will be necessary on the part of other nations, considering all their circumstances, to meet their agreed payments, we ought to hold them in increased admiration and respect. It is true that we have extended to them very generous treatment, but it is also true that they have agreed to repay its all that we loaned to them and some interest.
 A special conference on the Chinese customs tariff provided for by the treaty between the nine powers relating to the Chinese customs tariff signed at Washington on February 6, 1922, was called by the Chinese Government to meet at Peking, on October 26, 1925. We participated in this conference through fully empowered delegates and, with good will, endeavored to cooperate with the other participating powers with a view to putting into effect promises made to China at the Washington conference, and considering any reasonable proposal that might be made by the Chinese Government for the revision of the treaties on the subject of China's tariff. With these aims in view the American delegation at the outset of the conference proposed to put into effect the surtaxes provided for by the Washington treaty and to proceed immediately to the negotiation of a treaty, which, among other things, was to make provision for the abolition of taxes collected on goods in transit, remove the tariff restrictions in existing treaties, and put into effect the national tariff law of China.
 Early in April of the present year the central Chinese Government was ousted from power by opposing warring factions. It became impossible under the circumstances to continue the negotiations. Finally, on July 3, the delegates of the foreign powers, including those of the United States, issued a statement expressing their unanimous and earnest desire to proceed with the work of the conference at the earliest possible moment when the delegates of the Chinese Government are in a position to resume discussions with the foreign delegates of the problems before the conference. We are prepared to resume the negotiations thus interrupted whenever a Government representing the Chinese people and acting on their behalf presents itself. The fact that constant warfare between contending Chinese factions has rendered it impossible to bring these negotiations to a successful conclusion is a matter of deep regret. Throughout these conflicts we have maintained a position of the most careful neutrality. Our naval vessels in Asiatic waters, pursuant to treaty rights, have been used only for the protection of American citizens.
 Silas H. Strawn, Esq., was sent to China as American commissioner to cooperate with commissioners of the other powers in the establishment of a commission to inquire into the present practice of extraterritorial jurisdiction in China, with a view to reporting to the Governments of the several powers their findings of fact in regard to these matters. The commission commenced its work in January, 1926, and agreed upon a joint report which was signed on September 16, 1926. The commission's report has been received and is being studied with a view to determining our future policy in regard to the question of extraterritorial privileges under treaties between the United States and China.
 The Preparatory Commission for the Disarmament Conference met at Geneva on May 18 and its work has been proceeding almost continuously since that date. It would be premature to attempt to form a judgment as to the progress that has been made. The commission has had before it a comprehensive list of questions touching upon all aspects of the question of the limitation of armament. In the commission's discussions many differences of opinion have developed. However, I am hopeful that at least some measure of agreement will be reached as the discussions continue. The American representation on the commission has consistently tried to be helpful, and has kept before it the practical objective to which the commission is working, namely, actual agreements for the limitation of armaments. Our representatives will continue their work in that direction.
 One of the most encouraging features of the commission's work thus far has been the agreement in principle among the naval experts of a majority of the powers parties to the Washington treaty limiting naval armament upon methods and standards for the comparison and further limitation of naval armament. It is needless to say that at the proper time I shall be prepared to proceed along practical lines to the conclusion of agreements carrying further the work begun at the Washington Conference in 1921.
 
 Many important subjects which it is impossible even to mention in the short space of an annual message you will find fully discussed in the departmental reports. A failure to include them here is not to be taken as indicating any lack of interest, but only a disinclination to state inadequately what has been much better done in other documents.
 
 We are embarking on an ambitious building program for the city of Washington. The Memorial Bridge is under way with all that it holds for use and beauty. New buildings are soon contemplated. This program should represent the best that exists in the art and science of architecture. Into these structures which must be considered as of a permanent nature ought to go the aspirations of the Nation, its ideals expressed in forms of beauty. If our country wishes to compete with others, let it not be in the support of armaments but in the making of a beautiful capital city. Let it express the soul of America. Whenever an American is at the seat of his Government, however traveled and cultured he may be, he ought to find a city of stately proportion, symmetrically laid out and adorned with the best that there is in architecture, which would arouse his imagination and stir his patriotic pride. In the coming years Washington should be not only the art center of our own country but the art center of the world. Around it should center all that is best in science, in learning, in letters, and in art. These are the results that justify the creation of those national resources with which we have been favored.
 
 America is not and must not be a country without ideals. They are useless if they are only visionary; they are only valuable if they are practical. A nation can not dwell constantly on the mountain tops. It has to be replenished and sustained through the ceaseless toil of the less inspiring valleys. But its face ought always to be turned upward, its vision ought always to be fixed on high.
 We need ideals that can be followed in daily life, that can be translated into terms of the home. We can not expect to be relieved from toil, but we do expect to divest it of degrading conditions. Work is honorable; it is entitled to an honorable recompense. We must strive mightily, but having striven there is a defect in our political and social system if we are not in general rewarded with success. To relieve the land of the burdens that came from the war, to release to the individual more of the fruits of his own industry, to increase his earning capacity and decrease his hours of labor, to enlarge the circle of his vision through good roads and better transportation, to lace before him the opportunity for education both in science and in art, to leave him free to receive the inspiration of religion, all these are ideals which deliver him from the servitude of the body and exalt him to the service of the soul. Through this emancipation from the things that are material, we broaden our dominion over the things that are spiritual.
In reporting to the Congress the state of the Union, I find it impossible to characterize it other than one of general peace and prosperity. In some quarters our diplomacy is vexed with difficult and as yet unsolved problems, but nowhere are we met with armed conflict. If some occupations and areas are not flourishing, in none does there remain any acute chronic depression. What the country requires is not so much new policies as a steady continuation of those which are already being crowned with such abundant success. It can not be too often repeated that in common with all the world we are engaged in liquidating the war. In the present short session no great amount of new legislation is possible, but in order to comprehend what is most desirable some survey of our general situation is necessary. A large amount of time is consumed in the passage of appropriation bills. If each Congress in its opening session would make appropriations to continue for two years, very much time would be saved which could either be devoted to a consideration of the general needs of the country or would result in decreasing the work of legislation. Our present state of prosperity has been greatly promoted by three important causes, one of which is economy, resulting in reduction and reform in national taxation. Another is the elimination of many kinds of waste. The third is a general raising of the standards of efficiency. This combination has brought the perfectly astonishing result of a reduction in the index price of commodities and an increase in the index rate of wages. We have secured a lowering of the cost to produce and a raising of the ability to consume. Prosperity resulting from these causes rests on the securest of all foundations. It gathers strength from its own progress. In promoting this progress the chief part which the National Government plays lies in the field of economy. Whatever doubts may have been entertained as to the necessity of this policy and the beneficial results which would accrue from it to all the people of the Nation, its wisdom must now be considered thoroughly demonstrated. It may not have appeared to be a novel or perhaps brilliant conception, but it has turned out to be preeminently sound. It has not failed to work. It has surely brought results. It does not have to be excused as a temporary expedient adopted as the lesser evil to remedy some abuse, it is not. a palliative seeking to treat symptoms, but a major operation for the, eradication at the source of a large number of social diseases. Nothing is easier than the expenditure of public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow it on somebody. But the results of extravagance are ruinous. The property of the country, like the freedom of the country, belongs to the people of the country. They have not empowered their Government to take a dollar of it except for a necessary public purpose. But if the Constitution conferred such right, sound economics would forbid it. Nothing is more, destructive of the progress of the Nation than government extravagance. It means an increase in the burden of taxation, dissipation of the returns from enterprise, a decrease in the real value of wages, with ultimate stagnation and decay. The whole theory of our institutions is based on the liberty and independence of the individual. He is dependent on himself for support and therefore entitled to the rewards of his own industry. He is not to be deprived of what he earns that others may be benefited by what they do not earn. What lie saves through his private effort is not to be wasted by Government extravagance. Our national activities have become so vast that it is necessary to scrutinize each item of public expenditure if we are to apply the principle of economy. At the last session we made an immediate increase in the annual budget of more than $100,000,000 in benefits conferred on the veterans of three wars, public buildings, and river and harbor improvement. Many projects are being broached requiring further large outlays. I am convinced that it would be greatly for the welfare of the country if we avoid at the present session all commitments except those of the most pressing nature. From a reduction of the debt and taxes will accrue a wider benefit to all the people of this country than from embarking on any new enterprise. When our war debt is decreased we shall have resources for expansion. Until that is accomplished we should confine ourselves to expenditures of the most urgent necessity. The Department of Commerce has performed a most important function in making plans and securing support of all kinds of national enterprise for the elimination of waste. Efficiency has been greatly promoted through good management and the constantly increasing cooperation of the wage earners throughout the whole realm of private business. It is my opinion that this whole development has been predicated on the foundation of a protective tariff. As a result of economy of administration by the Executive and of appropriation by the Congress, the end of this fiscal year will leave a surplus in the Treasury estimated at $383,000,000. Unless otherwise ordered, such surplus is used for the retirement of the war debt. A bond which can be retired today for 100 cents will cost the, people 104 1/4 cents to retire a year from now. While I favor a speedy reduction of the debt as already required by law and in accordance with the promises made to the holders of our Liberty bonds when they were issued, there is no reason why a balanced portion of surplus revenue should not be applied to a reduction of taxation. It can not be repeated too often that the enormous revenues of this Nation could not be collected without becoming a charge on all the people whether or not they directly pay taxes. Everyone who is paying or the bare necessities of fool and shelter and clothing, without considering the better things of life, is indirectly paying a national tax. The nearly 20,000,000 owners of securities, the additional scores of millions of holders of insurance policies and depositors in savings banks, are all paying a national tax. Millions of individuals and corporations are making a direct contribution to the National Treasury which runs from 11/2 to 25 per cent of their income, besides a number of special requirements, like automobile and admission taxes. Whenever the state of the Treasury will permit, I believe in a reduction of taxation. I think the taxpayers are entitled to it. But I am not advocating tax reduction merely for the benefit of the taxpayer; I am advocating it for the benefit of the country. If it appeared feasible, I should welcome permanent tax reduction at this time. The estimated surplus, however, for June 30, 1928, is not much larger than is required in a going business of nearly $4,000,000,000. We have had but a few months' experience under the present revenue act and shall need to know what is developed by the returns of income produced under it, which are not required t o be made until about the time this session terminates, and what the economic probabilities of the country are in the latter part of 1927, before we can reach any justifiable conclusion as to permanent tax reduction. Moreover the present surplus results from many nonrecurrent items. Meantime, it is possible to grant some real relief by a simple measure making reductions in the payments which accrue on the 15th of March and June, 1927. 1 am very strongly of the conviction that this is so much a purely business matter that it ought not to be dealt with in a partisan spirit. The Congress has already set the notable example of treating tax problems without much reference to party, which might well be continued. What I desire to advocate most earnestly is relief for the country from unnecessary tax burdens. We can not secure that if we stop to engage in a partisan controversy. As I do not think any change in the special taxes, or tiny permanent reduction is practical, I therefore urge both parties of the House Ways and Means Committee to agree on a bill granting the temporary relief which I have indicated. Such a reduction would directly affect millions of taxpayers, release large sums for investment in new enterprise, stimulating industrial production and agricultural consumption, and indirectly benefiting every family in the whole country. These are my convictions stated with full knowledge that it is for the Congress to decide whether they judge it best to make such a reduction or leave the surplus for the present year to be applied to retirement of the war debt. That also is eventually tax reduction. It is estimated that customs receipts for the present fiscal year will exceed $615,000,000, the largest which were ever secured from that source. The value of our imports for the last fiscal year was $4,466,000,000, an increase of more than 71 per cent since the present tariff law went into effect. Of these imports about 65 per cent, or, roughly, $2,900,000,000, came in free of duty, which means that the United States affords a duty-free market to other countries almost equal in value to the total imports of Germany and greatly exceeding the total imports of France. We have admitted a greater volume of free imports than any other country except England. We are, therefore, levying duties on about $1,550,000,000 of imports. Nearly half of this, or $700,000,000, is subject to duties for the protection of agriculture and have their origin in countries other than Europe. They substantially increased the prices received by our farmers for their produce. About $300,000.000 more is represented by luxuries such as costly rugs, furs, precious stones, etc. This leaves only about $550,000,000 of our imports under a schedule of duties which is in general under consideration when there is discussion of lowering the tariff. While the duties on this small portion, representing only about 12 per cent of our imports, undoubtedly represent the difference between a fair degree of prosperity or marked depression to many of our industries and the difference between good pay and steady work or wide unemployment to many of our wage earners, it is impossible to conceive how other countries or our own importers could be greatly benefited if these duties are reduced. Those who are starting an agitation for a reduction of tariff duties, partly at least for the benefit of those to whom money has been lent abroad, ought to know that there does not seem to be a very large field within the area of our imports in which probable reductions would be advantageous to foreign goods. Those who wish to benefit foreign producers are much more likely to secure that result by continuing the present enormous purchasing power which comes from our prosperity that hall?' increased our imports over 71 per cent in four years than from any advantages that are likely to accrue from a general tariff reduction. The important place which agriculture holds in the economic and social life of the Nation can not be overestimated. The National Government is justified in putting forth every effort to make the open country a desirable place to live. No condition meets this requirement which fails to supply a fair return on labor expended and capital invested. While some localities and some particular crops furnish exceptions, in general agriculture is continuing to make progress in recovering from the depression of 1921 and 1922. Animal products and food products are in a more encouraging position, while cotton, due to the high prices of past years supplemented by ideal weather conditions, has been stimulated to a point of temporary over production. Acting on the request of the cotton growing interests, appointed a committee to assist in carrying out their plans. As it result of this cooperation sufficient funds have been pledged to finance the storage and carrying of 4,000,000 bales of cotton. Whether those who own the cotton are willing to put a part of their stock into this plan depends on themselves. The Federal Government has cooperated in providing ample facilities. No method of meeting the situation would be adequate which does not contemplate a reduction of about one-third in the acreage for the coming year. The responsibility for making the plan effective lies with those who own and finance cotton and cotton lands. The Department of Agriculture estimates the net income of agriculture for the year 1920-21 at only $375,000,000; for 1924-25, $2,656,000,000; for 1925-26, $2,757,000,000. This increase has been brought about in part by the method already referred to, of Federal tax reduction, the elimination of waste, and increased efficiency in industry. The wide gap that existed a few years ago between the index price of agricultural products and the index price of other products has been gradually closing up, though the recent depression in cotton has somewhat enlarged it. Agriculture had on the whole been going higher while industry had been growing lower. Industrial and commercial activities, being carried on for the most part by corporations, are taxed at a much higher rate than farming, which is carried on by individuals. This will inevitably make industrial commodity costs high while war taxation lasts. It is because of this circumstance that national tax reduction has a very large indirect benefit upon the farmer, though it can not relieve him from the very great burden of the local taxes which he pays directly. We have practically relieved the farmer of any Federal income tax. There is agreement on all sides that some portions of our agricultural industry have lagged behind other industries in recovery from the war and that further improvement in methods of marketing of agricultural products is most desirable. There is belief also that the Federal Government can further contribute to these ends beyond the many helpful measures taken during the last five years through the different acts of Congress for advancing the interests of the farmers. The packers and stockyards act, Establishing of the intermediate credit banks for agricultural purposes, The Purnell Act for agricultural research, The Capper-Volstead Cooperative Marketing Act, The cooperative marketing act of 1926, Amendments to the warehousing act, The enlargement of the activities of the Department of Agriculture, Enlargement of the scope of loans by the Farm Loan Board, The tariff on agricultural products, The large Federal expenditure in improvement of waterways and highways, The reduction of Federal taxes, in all comprise a great series of governmental actions in the advancement of the special interest of agriculture. In determination of what further measures may be undertaken it seems to me there are certain pitfalls which must be avoided and our test in avoiding them should be to avoid disaster to the farmer himself. Acting upon my recommendation, the Congress has ordered the interstate Commerce Commission to investigate the freight-rate structure, directing that such changes shall be made in freight rates as will promote freedom of movement of agricultural products. Railroad consolidation which I am advocating would also result in a situation where rates could be made more advantageous for farm produce, as has recently been done in the revision of rates on fertilizers in the South. Additional benefit will accrue from the development of our inland waterways. The Mississippi River system carries a commerce of over 50,000,000 tons at a saving of nearly $18,000,000 annually. The Inland Waterways Corporation operates boats on 2,500 miles of navigable streams and through its relation with 165 railroads carries freight into and out of 45 States of the Union. During the past six months it has handled over 1,000,000 bushels of grain monthly and by its lower freight rates has raised the price of such grain to the farmer probably 21/2 cents to 3 cents a bushel. The highway system on which the Federal Government expends about $85,000,000 a year is of vital importance to the rural regions. The advantages to be derived from a more comprehensive and less expensive system. of transportation for agriculture ought to be supplemented by provision for an adequate supply of fertilizer at a lower cost than it is at. present obtainable. This advantage we are attempting to secure by the proposed development at Muscle Shoals, and there are promising experiments being made in synthetic chemistry for the production of nitrates. A survey should be made of the relation of Government grazing lands to the livestock industry. Additional legislation is desirable more definitely to establish the place of grazing in the administration of the national forests, properly subordinated to their functions of producing timber and conserving the water supply. Over 180,000,000 acres of grazing lands are still pastured as commons in the public domain with little or no regulation. This has made their use so uncertain that it has contributed greatly to the instability of the livestock industry. Very little of this land is suited to settlement or private ownership. Some plan ought to be adopted for its use in grazing, corresponding broadly to that already successfully applied to the national forests. The development of sound and strong cooperative associations is of fundamental importance to our agriculture. It is encouraging to note, therefore, that a vigorous and healthy growth in the cooperative movement is continuing. Cooperative associations reporting to the Department of Agriculture at the end of 1925 had on their membership rolls a total of 2,700,000 producers. Their total business in 1925 amounted to approximately $2,400,000,000, compared with $635,800,000 in 1915. Legislative action to assist cooperative associations and supplement their efforts was passed at the last session of Congress. Important credit measures were also provided by Congress in 1923 which have been of inestimable value to the cooperative associations. Although the Federal credit agencies have served agriculture well, I think it may be possible to broaden and strengthen the service of these institutions. Attention is again directed to the surplus problem of agriculture by the present cotton situation. Surpluses often affect prices of various farm commodities in a disastrous manner, and the problem urgently demand?, a solution. Discussions both in and out of Congress during the past few years have given us a better understanding of the subject, and it is my hope that out of the various proposals made the basis will be found for a sound and effective solution upon which agreement can be reached. In my opinion cooperative marketing associations will be important aids to the ultimate solution of the problem. It may well be, however, that additional measures will be needed to supplement their efforts. I believe all will agree that such measures should not conflict with the best interests of the cooperatives, but rather assist and strengthen them. In working out this problem to any sound conclusion it is necessary to avoid putting the Government into the business of production or marketing or attempting to enact legislation for the purpose of price fixing. The farmer does not favor any attempted remedies that partake of these elements. He has a sincere and candid desire for assistance. If matched by an equally sincere and candid consideration of the different remedies proposed ' a sound measure of relief ought to result. It is unfortunate that no general agreement has been reached by the various agricultural interests upon any of the proposed remedies. Out of the discussion of various proposals which can be had before the Committees of Agriculture some measure ought to be perfected which would be generally satisfactory. Due to the emergency arising from a heavy tropical storm in southern Florida, I authorized the Secretary of Agriculture to use certain funds in anticipation of legislation to enable the farmers in that region to plant their crops. The department will present a bill ratifying the loans which were made for this purpose. Federal legislation has been adopted authorizing the cooperation of the Government with States and private owners in the protection of forest lands from fire. This preventive measure is of such great importance that I have recommended for it an increased appropriation. Another preventive measure of great economic and sanitary importance is the eradication of tuberculosis in cattle. Active work is now in progress in one-fourth of the counties of the United States to secure this result. Over 12,000,000 cattle have been under treatment, and the average degree of infection has fallen from 4.9 per cent to 2.8 per cent. he Federal Government is making substantial expenditures for this purpose. Serious damage is threatened to the corn crop by the European corn borer. Since 1917 it has spread from eastern New England westward into Indiana and now covers about 100,000 square miles. It is one of the most formidable pests because it spreads rapidly and is exceedingly difficult of control. It has assumed a menace that is of national magnitude and warrants the Federal Government in extending its cooperation to the State and local agencies which are attempting to prevent its further spread and secure its eradication. The whole question of agriculture needs most careful consideration. In the past few years the Government has given this subject more attention than any other and has held more consultations in relation to it than on any other subject. While the Government is not to be blamed for failure to perform the impossible, the agricultural regions are entitled to know that they have its constant solicitude and sympathy. Many of the farmers are burdened with debts and taxes which they are unable to carry. We are expending in this country many millions of dollars each year to increase farm production. We ought now to put more emphasis on the question of farm marketing. If a sound solution of a permanent nature can be found for this problem, the Congress ought not to hesitate to adopt it. In previous messages I have referred to the national importance of the proper development of our water resources. The great projects of extension of the Mississippi system, the protection an development of the lower Colorado River, are before Congress, and I have previously commented upon them. I favor the necessary legislation to expedite these projects. Engineering studies are being made for connecting the Great Lakes with the North Atlantic either through an all-American canal or by way of the St. Lawrence River. These reports will undoubtedly be before the Congress during its present session. It is unnecessary to dwell upon the great importance of such a waterway not only to our mid-continental basin but to the commerce and development of practically the whole Nation. Our river and harbor improvement should be continued in accordance with the present policy. Expenditure of this character is compatible with economy; it is in the nature of capital investment. Work should proceed on the basic trunk lines if this work is to be a success. If the country will be content to be moderate and patient and permit improvements to be made where they will do the greatest general good, rather than insisting on expenditures at this time on secondary projects, our internal Waterways can be made a success. If proposes legislation results in a gross manifestation of local jealousies and selfishness, this program can not be carried out. Ultimately we can take care of extensions, but our first effort should be confined to the main arteries. Our inland commerce has been put to great inconvenience and expense by reason of the lowering of the water level of the Great Lakes. This is an international problem on which competent engineers are making reports. Out of their study it is expected that a feasible method will be developed for raising the level to provide relief for our commerce and supply water for drainage. Whenever a practical plan is presented it ought to be speedily adopted. It is increasingly evident that the Federal Government must in the future take a leading part in the impounding of water for conservation with incidental power for the development of the irrigable lands of the and region. The unused waters of the West are found mainly in large rivers. Works to store and distribute these have such magnitude and cost that they are not attractive to private enterprise. Water is the irreplaceable natural resource. Its precipitation can not be increased. Its storage on the higher reaches of streams, to meet growing needs, to be used repeatedly as it flows toward the seas, is a practical and prudent business policy. The United States promises to follow the course of older irrigation countries, where recent important irrigation developments have been carried out as national undertakings. It is gratifying, therefore, that conditions on Federal reclamation projects have become satisfactory. The gross value of crop, grown with water from project works increased from $110,000,000 in 1924 to $131,000,000 in 1925. The adjustments made last year by Congress relieved irrigators from paying construction costs on unprofitable land, and by so doing inspired new hope and confidence in ability to meet the payments required. Construction payments by water users last year were the largest in the history of the bureau. The anticipated reclamation fund will be fully absorbed for a number of years in the completion of old projects and the construction of projects inaugurated in the past three years. We should, however, continue to investigate and study the possibilities of a carefully planned development of promising projects, logically of governmental concern because of their physical magnitude, immense cost, and the interstate and international problems involved. Only in this way may we be fully prepared to meet intelligently the needs of our fast-growing population in the years to come. It would be difficult to conceive of any modern activity which contributes more to the necessities and conveniences of life than transportation. Without it our present agricultural production and practically all of our commerce would be completely prostrated. One of the large contributing causes to the present highly satisfactory state of our economic condition is the prompt and dependable service, surpassing all our previous records, rendered by the railroads. This power has been fostered by the spirit of cooperation between Federal and State regulatory commissions. To render this service more efficient and effective and to promote a more scientific regulation, the process of valuing railroad properties should be simplified and the primary valuations should be completed as rapidly as possible. The problem of rate reduction would be much simplified by a process of railroad consolidations. This principle has already been adopted as Federal law. Experience has shown that a more effective method must be provided. Studies have already been made and legislation introduced seeking to promote this end. It would be of great advantage if it could be taken up at once and speedily enacted. The railroad systems of the country and the convenience of all the people are waiting on this important decision. It is axiomatic that no agricultural and industrial country can get the full benefit of its own advantages without a merchant marine. We have been proceeding under the act of Congress that contemplates the establishment of trade routes to be ultimately transferred to private ownership and operation. Due to temporary conditions abroad and at home we have a large demand just now for certain types of freight vessels. Some suggestion has been made for new construction. I do not feel that we are yet warranted in entering, that field. Such ships as we might build could not be sold after they are launched for anywhere near what they would cost. We have expended over $250,000,000 out of the public Treasury in recent years to make up the losses of operation, not counting the depreciation or any cost whatever of our capital investment. The great need of our merchant marine is not for more ships but for more freight. Our merchants are altogether too indifferent about using American ships for the transportation of goods which they send abroad or bring home. Some of our vessels necessarily need repairs, which should be made. I do not believe that the operation of our fleet is as economical and efficient as it could be made if placed under a single responsible head, leaving the Shipping Board free to deal with general matters of policy and regulation. The Department of Commerce has for some years urgently presented the necessity for further legislation in order to protect radio listeners from interference between broadcasting stations and to carry out other regulatory functions. Both branches of Congress at the last session passed enactments intended to effect such regulation, but the two bills yet remain to be brought into agreement and final passage. Due to decisions of the courts, the authority of the department under the law of 1912 has broken down; many more stations have been operating than can be accommodated within the limited number of wave lengths available; further stations are in course of construction; many stations have departed from the scheme of allocation set down by the department, and the whole service of this most important public function has drifted into such chaos as seems likely, if not remedied, to destroy its great value. I most urgently recommend that this legislation should be speedily enacted. I do not believe it is desirable to set tip further independent agencies in the Government. Rather I believe it advisable to entrust the important functions of deciding who shall exercise the privilege of radio transmission and under what conditions, the assigning of wave lengths and determination of power, to a board to be assembled whenever action on such questions becomes necessary. There should be right of appeal to the courts from the decisions of such board. The administration of the decisions of the board and the other features of regulation and promotion of radio in the public interest, together with scientific research, should remain in the Department of Commerce. Such an arrangement makes for more expert, more efficient, and more economical administration that an independent agency or board, whose duties, after initial stages, require but little attention, in which administrative functions are confused with semijudicial functions and from which of necessity there must be greatly increased personnel and expenditure. The great body of our people are made up of wage earners. Several hundred thousands of them are on the pay rolls of the United States Government. Their condition very largely is fixed by legislation. We have recently provided increases in compensation under a method of reclassification and given them the advantage of a liberal retirement system as a support for their declining years. Most of them are under the merit system, which is a guaranty of their intelligence, and the efficiency of their service is a demonstration of their loyalty. The Federal Government should continue to set a good example for all other employers. In the industries the condition of the wage earner has steadily improved. The 12-hour day is almost entirely unknown. Skilled labor is well compensated. But there are unfortunately a multitude of workers who have not yet come to share in the general prosperity of the Nation. Both the public authorities and private enterprise should be solicitous to advance the welfare of this class. The Federal Government has been seeking to secure this end through a protective tariff, through restrictive immigration, through requiring safety devices for the prevention of accidents, through the granting of workman's compensation, through civilian vocational rehabilitation and education, through employment information bureaus, and through such humanitarian relief as was provided in the maternity and infancy legislation. It is a satisfaction to report that a more general condition of contentment exists among wage earners and the country is more free from labor disputes than it has been for years. While restrictive immigration has been adopted in part for the benefit of the wage earner, and in its entirety for the benefit of the country, it ought not to because a needless separation of families and dependents from their natural source of support contrary to the dictates of humanity. No progress appears to have been made within large areas of the bituminous coal industry toward creation of voluntary machinery by which greater assurance can be given to the public of peaceful adjustment of wage difficulties such as has been accomplished in the anthracite industry. This bituminous industry is one of primary necessity and bears a great responsibility to the Nation for continuity of supplies. As the wage agreements in the unionized section of the industry expire on April 1 next, and as conflicts may result which may imperil public interest, and have for many years often called for action of the Executive in protection of the public, I again recommend the passage of such legislation as will assist the Executive in dealing with such emergencies through a special temporary board of conciliation and mediation and through administrative agencies for the purpose of distribution of coal and protection of the consumers of coal from profiteering. At present the Executive is not only without authority to act but is actually prohibited by law from making any expenditure to meet the emergency of a coal famine. The Federal courts hold a high position in the administration of justice in the world. While individual judicial officers have sometimes been subjected to just criticism, the courts as a whole have maintained an exceedingly high standard. The Congress may well consider the question of supplying fair salaries and conferring upon the Supreme Court the same rule-making power on the law side of the district courts that they have always possessed on the equity side. A bill is also pending providing for retirement after a certain number of years of service, although they have not been consecutive, which should have your favorable consideration. These faithful servants of the Government are about the last that remain to be provided for in the postwar readjustments. There has been pending in Congress for nearly three years banking legislation to clarify the national bank act and reasonably to increase the powers of the national banks. I believe that within the limitation of sound banking principles Congress should now and for the future place the national banks upon a fair equality with their competitors, the State banks, and I trust that means may be found so that the differences on branch-banking legislation between the Senate and the House of Representatives may be settled along sound lines and the legislation promptly enacted. It would be difficult to overestimate the service which the Federal reserve system has already rendered to the country. It is necessary only to recall the chaotic condition of our banking organization at the time the Federal reserve system was put into operation. The old system consisted of a vast number of independent banking units, with scattered bank reserves which never could be mobilized in times of greatest need. In spite of vast banking resources, there was no coordination of reserves or any credit elasticity. As a consequence, a strain was felt even during crop-moving periods and when it was necessary to meet other seasonal and regularly recurring needs. The Federal reserve system is not a panacea for all economic or financial ills. It can not prevent depression in certain industries which are experiencing overexpansion of production or contraction of their markets. Its business is to furnish adequate credit and currency facilities. This it has succeeded in doing, both during the war and in the more difficult period of deflation and readjustment which followed. It enables us to look to the future with confidence and to make plans far ahead, based on the belief that the Federal reserve system will exercise a steadying influence on credit conditions and thereby prevent tiny sudden or severe reactions from the period of prosperity which we are now enjoying. In order that these plans may go forward, action should be taken at the present session on the question of renewing the banks' charters and thereby insuring a continuation of the policies and present usefulness of the Federal reserve system. I am in favor of reducing, rather than expanding, Government bureaus which seek to regulate and control the business activities of the people. Everyone is aware that abuses exist and will exist so long as we are limited by human imperfections. Unfortunately, human nature can not be changed by an act of the legislature. When practically the sole remedy for many evils lies in the necessity of the people looking out for themselves and reforming their own abuses, they will find that they are relying on a false security if the Government assumes to hold out the promise that it is looking out for them and providing reforms for them. This principle is preeminently applicable to the National Government. It is too much assumed that because an abuse exists it is the business of the National Government to provide a remedy. The presumption should be that it is the business of local and State governments. Such national action results in encroaching upon the salutary independence of the States and by undertaking to supersede their natural authority fills the land with bureaus and departments which are undertaking to do what it is impossible for them to accomplish and brings our whole system of government into disrespect and disfavor. We ought to maintain high standards. We ought to punish wrongdoing. Society has not only the privilege but the absolute duty of protecting itself and its individuals. But we can not accomplish this end by adopting a wrong method. Permanent success lies in local, rather than national action. Unless the locality rises to its own requirements, there is an almost irresistible impulse for the National Government to intervene. The States and the Nation should both realize that such action is to be adopted only as a last resort. The social well-being of our country requires our constant effort for the amelioration of race prejudice and the extension to all elements of equal opportunity and equal protection under the laws which are guaranteed by the. Constitution. The Federal Government especially is charged with this obligation in behalf of the colored people of the Nation. Not only their remarkable progress, their devotion and their loyalty, but, our duty to ourselves under our claim that we are an enlightened people requires us to use all our power to protect them from the crime of lynching. Although violence of this kind has very much decreased, while any of it remains we can not justify neglecting to make every effort to eradicate it by law. The education of the colored race under Government encouragement is proceeding successfully and ought to have continuing support. An increasing need exists for properly educated and trained medical skill to be devoted to the service of this race. This Government holds in sacred trusteeship islands which it has acquired in the East and West Indies. In all of them the people are more prosperous than at any previous time. A system of good roads, education, and general development is in progress. The people are better governed than ever before and generally content. In the Philippine Islands Maj. Gen. Leonard Wood has been Governor General for five years and has administered his office with tact and ability greatly to the success of the Filipino people. These are a proud and sensitive race, who are making such progress with our cooperation that we can view the results of this experiment with great satisfaction. As we are attempting to assist this race toward self-government, we should look upon their wishes with great respect, granting their requests immediately when they are right, yet maintaining a frank firmness in refusing when they are wrong. We shall measure their progress in no small part by their acceptance of the terms of the organic law under which the islands are governed and their faithful observance of its provisions. Need exists for clarifying the duties of the auditor and declaring them to be what everyone had supposed they were. We have placed our own expenditures under the supervision of the Comptroller General. It is not likely that the expenditures in the Philippine Islands need less supervision than our own. The Governor General is hampered in his selection of subordinates by the necessity of securing a confirmation, which has oftentimes driven him to the expediency of using Army officers in work for which civilian experts would be much better fitted. Means should be provided for this and such other purposes as he may require out of the revenue which this Government now turns back to the Philippine treasury. In order that these possessions might stiffer no seeming neglect, I have recently sent Col. Carmi A Thompson to the islands to make a survey in cooperation with the Governor General to suggest what might be done to improve conditions. Later, I may make a more extended report including recommendations. The economic development of the islands is very important. They ought not to be turned back to the people until they are both politically fitted for self-government and economically independent. Large areas are adaptable to the production of rubber. No one contemplates any time in the future either under the present or a more independent form of government when we should not assume some responsibility for their defense. For their economic advantage, for the employment of their people, and as a contribution to our power of defense which could not be carried on without rubber, I believe this industry should be encouraged. It is especially adapted to the Filipino people themselves, who might cultivate it individually on a small acreage. It could be carried on extensively by American capital in a way to furnish employment at good wages. I am opposed to the promotion of any policy that does not provide for absolute freedom on the part of the wage earners and do not think we should undertake to give power for large holdings of land in the islands against the opposition of the people of the locality. Any development of the islands must be solely with the first object of benefiting the people of the islands. At an early day, these possessions should be taken out from under all military control and administered entirely on the civil side of government. Our policy of national defense is not one of making war, but of insuring peace. The land and sea force of America, both in its domestic and foreign implications, is distinctly a peace force. It is an arm of the police power to guarantee order and the execution of the law at home and security to our citizens abroad. No self-respecting nation would neglect to provide an army and navy proportionate to its population, the extent of its territory, and the dignity of the place which it occupies in the world. When it is considered that no navy in the world, with one exception, approaches ours and none surpasses it, that our Regular Army of about 115,000 men is the equal of any other like number of troops, that our entire permanent and reserve land and sea force trained and training consists of a personnel of about 610,000, and that our annual appropriations are about $680,000,000 a year, expended under the direction of an exceedingly competent staff, it can not be said that our country is neglecting its national defense. It is true that a cult of disparagement exists, but that candid examination made by the Congress through its various committees has always reassured the country and demonstrated that it is maintaining the most adequate defensive forces in these present years that it has ever supported in time of peace. This general policy should be kept in effect. Here and there temporary changes may be made in personnel to meet requirements in other directions. Attention should be given to submarines, cruisers, and air forces. Particular points may need strengthening, but as a whole our military power is sufficient. The one weak place in the whole line is our still stupendous war debt. In any modern campaign the dollars are the shock troops. With a depleted treasury in the rear, no army can maintain itself in the field. A country loaded with debt is a country devoid of the first line of defense. Economy is the handmaid of preparedness. If we wish to be able to defend ourselves to the full extent of our power in the future, we shall discharge as soon as possible the financial burden of the last war. Otherwise we would face a crisis with a part of our capital resources already expended. The amount and kind of our military equipment is preeminently a question for the decision of the Congress, after giving due consideration to the advice of military experts and the available public revenue. Nothing is more laudable than the cooperation of the agricultural and industrial resources of the country for the purpose of supplying the needs of national defense. In time of peril the people employed in these interests volunteered in a most self-sacrificing way, often at the nominal charge of a dollar a year. But the Army and Navy are not supported for the benefit of supply concerns; supply concerns are supported for the benefit of the Army and Navy. The distribution of orders on what is needed from different concerns for the purpose of keeping up equipment and organization is perfectly justified, but any attempt to prevail upon the Government to purchase beyond its needs ought not to be tolerated. It is eminently fair that those who deal with the Government should do so at a reasonable profit. However, public money is expended not that some one may profit by it, but in order to serve a public purpose. While our policy of national defense will proceed in order that we may be independent and self-sufficient, I am opposed to engaging in any attempt at competitive armaments. No matter how much or how little some other country may feel constrained to provide, we can well afford to set the example, not of being dictated to by others, but of adopting our own standards. We are strong enough to pursue that method, which will be a most wholesome model for the rest of the world. We are eminently peaceful, but we are by no means weak. While we submit our differences with others, not to the adjudication of force, but of reason, it is not because we are unable to defend our rights. While we are doing our best to eliminate all resort to war for the purpose of settling disputes, we can not but remember that the peace we now enjoy had to be won by the sword and that if the rights of our country are to be defended we can not rely for that purpose upon anyone but ourselves. We can not shirk the responsibility, which is the first requisite of all government, of preserving its own integrity and maintaining the rights of its own citizens. It is only in accordance with these principles that we can establish any lasting foundations for an honorable and permanent peace. It is for these reasons that our country, like any other country, proposes to provide itself with an army and navy supported by a merchant marine. Yet these are not for competition with any other power. For years we have besought nations to disarm. We have recently expressed our willingness at Geneva to enter into treaties for the limitation of all types of warships according to the ratio adopted at the Washington Conference. This offer is still pending. While we are and shall continue to be armed it is not as a menace, but rather a common assurance of tranquility to all the peaceloving people of the world. For us to do any less would be to disregard our obligations, evade our responsibilities, and jeopardize our national honor. This country, not only because it is bound by honor but because of the satisfaction derived from it, has always lavished its bounty upon its veterans. For years a service pension has been bestowed upon the Grand Army on reaching a certain age. Like provision has been made for the survivors of the Spanish War. A liberal future compensation has been granted to all the veterans of the World War. But it is in the case of the, disabled and the dependents that the Government exhibits its greatest solicitude. This work is being well administered by the Veterans' Bureau. The main unfinished feature is that of hospitalization. This requirement is being rapidly met. Various veteran bodies will present to you recommendations which should have your careful consideration. At the last session we increased our annual expenditure for pensions and relief on account of the veterans of three wars. While I approve of proper relief for all suffering, I do not favor any further extension of our pension system at this time. We still have in the possession of the Government the alien property. It has always been the policy of America to hold that private enemy property should not be confiscated in time of war. This principle we have scrupulously observed. As this property is security for the claims of our citizens and our Government, we can not relinquish it without adequate provision for their reimbursement. Legislation for the return of this property, accompanied by suitable provisions for the liquidation of the claims of our citizens and our Treasury, should be adopted. If our Government releases to foreigners the security which it holds for Americans, it must at the same time provide satisfactory safeguards for meeting American claims. The duly authorized public authorities of this country have made prohibition the law of the land. Acting under the Constitution the Congress and the legislatures of practically all the, States have adopted legislation for its enforcement. Some abuses have arisen which require reform. Under the law the National Government has entrusted to the Treasury Department the especial duty of regulation and enforcement. Such supplementary legislation as it requires to meet existing conditions should be carefully and speedily enacted. Failure to support the Constitution and observe the law ought not to be tolerated by public opinion. Especially those in public places, who have taken their oath to support the Constitution, ought to be most scrupulous in its observance. Officers of the Department of Justice throughout the country should be vigilant in enforcing the law, but local authorities, which had always been mainly responsible for the enforcement of law in relation to intoxicating liquor, ought not to seek evasion by attempting to shift the burden wholly upon the Federal agencies. Under the Constitution the States are jointly charged with the Nation in providing for the enforcement of the prohibition amendment. Some people do not like the amendment, some do not like other parts of the Constitution, some do not like any of it. Those who entertain such sentiments have a perfect right to seek through legal methods for a change. But for any of our inhabitants to observe such parts of the Constitution as they like, while disregarding others, is a doctrine that would break down all protection of life and property and destroy the American system of ordered liberty. The foreign policy of this Government is well known. It is one of peace based on that mutual respect that arises from mutual regard for international rights arid the discharge of international obligations. It is our purpose to promote understanding and good will between ourselves and all other people. The American people are altogether lacking in an appreciation of the tremendous good fortune that surrounds their international position. We have no traditional enemies. We are not embarrassed over any disputed territory. We have no possessions that are coveted by others; they have none that are coveted by us. Our borders are unfortified. We fear no one; no one fears us. All the world knows that the whole extent of our influence is against war and in favor of peace, against the use of force and in favor of negotiation, arbitration, and adjudication as a method of adjusting international differences. We look with disfavor upon all aggressive warfare. We are strong enough so that no one can charge us with weakness if we are slow to anger. Our place is sufficiently established so that we need not be sensitive over trifles. Our resources, are large enough so that we can afford to be generous. At the same time we are a nation among nations and recognize a responsibility not only to ourselves, but in the interests of a stable and enlightened civilization, to protect and defend the international rights of our Government and our citizens. It is because of our historical detachment and the generations of comparative indifference toward it by other nations that our public is inclined to consider altogether too seriously the reports that we are criticized abroad. We never had a larger foreign trade than at the present time. Our good offices were never more sought and the necessity for our assistance and cooperation was never more universally declared in any time of peace. We know that the sentiments which we entertain toward all other nations are those of the most sincere friendship and good will and of all unbounded desire to help, which we are perfectly willing to have judged by their fruits. In our efforts to adjust our international obligations we have met with a response which, when everything is considered, I believe history will record as a most remarkable and gratifying demonstration of the sanctity with which civilized nations undertake to discharge their mutual obligations. Debt settlements have been negotiated with practically all of those who owed us and all finally adjusted but two, which are, in process of ratification. When we consider the real sacrifice that will be necessary on the part of other nations, considering all their circumstances, to meet their agreed payments, we ought to hold them in increased admiration and respect. It is true that we have extended to them very generous treatment, but it is also true that they have agreed to repay its all that we loaned to them and some interest. A special conference on the Chinese customs tariff provided for by the treaty between the nine powers relating to the Chinese customs tariff signed at Washington on February 6, 1922, was called by the Chinese Government to meet at Peking, on October 26, 1925. We participated in this conference through fully empowered delegates and, with good will, endeavored to cooperate with the other participating powers with a view to putting into effect promises made to China at the Washington conference, and considering any reasonable proposal that might be made by the Chinese Government for the revision of the treaties on the subject of China's tariff. With these aims in view the American delegation at the outset of the conference proposed to put into effect the surtaxes provided for by the Washington treaty and to proceed immediately to the negotiation of a treaty, which, among other things, was to make provision for the abolition of taxes collected on goods in transit, remove the tariff restrictions in existing treaties, and put into effect the national tariff law of China. Early in April of the present year the central Chinese Government was ousted from power by opposing warring factions. It became impossible under the circumstances to continue the negotiations. Finally, on July 3, the delegates of the foreign powers, including those of the United States, issued a statement expressing their unanimous and earnest desire to proceed with the work of the conference at the earliest possible moment when the delegates of the Chinese Government are in a position to resume discussions with the foreign delegates of the problems before the conference. We are prepared to resume the negotiations thus interrupted whenever a Government representing the Chinese people and acting on their behalf presents itself. The fact that constant warfare between contending Chinese factions has rendered it impossible to bring these negotiations to a successful conclusion is a matter of deep regret. Throughout these conflicts we have maintained a position of the most careful neutrality. Our naval vessels in Asiatic waters, pursuant to treaty rights, have been used only for the protection of American citizens. Silas H. Strawn, Esq., was sent to China as American commissioner to cooperate with commissioners of the other powers in the establishment of a commission to inquire into the present practice of extraterritorial jurisdiction in China, with a view to reporting to the Governments of the several powers their findings of fact in regard to these matters. The commission commenced its work in January, 1926, and agreed upon a joint report which was signed on September 16, 1926. The commission's report has been received and is being studied with a view to determining our future policy in regard to the question of extraterritorial privileges under treaties between the United States and China. The Preparatory Commission for the Disarmament Conference met at Geneva on May 18 and its work has been proceeding almost continuously since that date. It would be premature to attempt to form a judgment as to the progress that has been made. The commission has had before it a comprehensive list of questions touching upon all aspects of the question of the limitation of armament. In the commission's discussions many differences of opinion have developed. However, I am hopeful that at least some measure of agreement will be reached as the discussions continue. The American representation on the commission has consistently tried to be helpful, and has kept before it the practical objective to which the commission is working, namely, actual agreements for the limitation of armaments. Our representatives will continue their work in that direction. One of the most encouraging features of the commission's work thus far has been the agreement in principle among the naval experts of a majority of the powers parties to the Washington treaty limiting naval armament upon methods and standards for the comparison and further limitation of naval armament. It is needless to say that at the proper time I shall be prepared to proceed along practical lines to the conclusion of agreements carrying further the work begun at the Washington Conference in 1921. Many important subjects which it is impossible even to mention in the short space of an annual message you will find fully discussed in the departmental reports. A failure to include them here is not to be taken as indicating any lack of interest, but only a disinclination to state inadequately what has been much better done in other documents. We are embarking on an ambitious building program for the city of Washington. The Memorial Bridge is under way with all that it holds for use and beauty. New buildings are soon contemplated. This program should represent the best that exists in the art and science of architecture. Into these structures which must be considered as of a permanent nature ought to go the aspirations of the Nation, its ideals expressed in forms of beauty. If our country wishes to compete with others, let it not be in the support of armaments but in the making of a beautiful capital city. Let it express the soul of America. Whenever an American is at the seat of his Government, however traveled and cultured he may be, he ought to find a city of stately proportion, symmetrically laid out and adorned with the best that there is in architecture, which would arouse his imagination and stir his patriotic pride. In the coming years Washington should be not only the art center of our own country but the art center of the world. Around it should center all that is best in science, in learning, in letters, and in art. These are the results that justify the creation of those national resources with which we have been favored. America is not and must not be a country without ideals. They are useless if they are only visionary; they are only valuable if they are practical. A nation can not dwell constantly on the mountain tops. It has to be replenished and sustained through the ceaseless toil of the less inspiring valleys. But its face ought always to be turned upward, its vision ought always to be fixed on high. We need ideals that can be followed in daily life, that can be translated into terms of the home. We can not expect to be relieved from toil, but we do expect to divest it of degrading conditions. Work is honorable; it is entitled to an honorable recompense. We must strive mightily, but having striven there is a defect in our political and social system if we are not in general rewarded with success. To relieve the land of the burdens that came from the war, to release to the individual more of the fruits of his own industry, to increase his earning capacity and decrease his hours of labor, to enlarge the circle of his vision through good roads and better transportation, to lace before him the opportunity for education both in science and in art, to leave him free to receive the inspiration of religion, all these are ideals which deliver him from the servitude of the body and exalt him to the service of the soul. Through this emancipation from the things that are material, we broaden our dominion over the things that are spiritual.
in reporting to the congress the state of the union i find it impossible to characterize it other than one of general peace and prosperity in some quarters our diplomacy is vexed with difficult and as yet unsolved problems but nowhere are we met with armed conflict if some occupations and areas are not flourishing in none does there remain any acute chronic depression what the country requires is not so much new policies as a steady continuation of those which are already being crowned with such abundant success it can not be too often repeated that in common with all the world we are engaged in liquidating the war in the present short session no great amount of new legislation is possible but in order to comprehend what is most desirable some survey of our general situation is necessary a large amount of time is consumed in the passage of appropriation bills if each congress in its opening session would make appropriations to continue for two years very much time would be saved which could either be devoted to a consideration of the general needs of the country or would result in decreasing the work of legislation our present state of prosperity has been greatly promoted by three important causes one of which is economy resulting in reduction and reform in national taxation another is the elimination of many kinds of waste the third is a general raising of the standards of efficiency this combination has brought the perfectly astonishing result of a reduction in the index price of commodities and an increase in the index rate of wages we have secured a lowering of the cost to produce and a raising of the ability to consume prosperity resulting from these causes rests on the securest of all foundations it gathers strength from its own progress in promoting this progress the chief part which the national government plays lies in the field of economy whatever doubts may have been entertained as to the necessity of this policy and the beneficial results which would accrue from it to all the people of the nation its wisdom must now be considered thoroughly demonstrated it may not have appeared to be a novel or perhaps brilliant conception but it has turned out to be preeminently sound it has not failed to work it has surely brought results it does not have to be excused as a temporary expedient adopted as the lesser evil to remedy some abuse it is not a palliative seeking to treat symptoms but a major operation for the eradication at the source of a large number of social diseases nothing is easier than the expenditure of public money it does not appear to belong to anybody the temptation is overwhelming to bestow it on somebody but the results of extravagance are ruinous the property of the country like the freedom of the country belongs to the people of the country they have not empowered their government to take a dollar of it except for a necessary public purpose but if the constitution conferred such right sound economics would forbid it nothing is more destructive of the progress of the nation than government extravagance it means an increase in the burden of taxation dissipation of the returns from enterprise a decrease in the real value of wages with ultimate stagnation and decay the whole theory of our institutions is based on the liberty and independence of the individual he is dependent on himself for support and therefore entitled to the rewards of his own industry he is not to be deprived of what he earns that others may be benefited by what they do not earn what lie saves through his private effort is not to be wasted by government extravagance our national activities have become so vast that it is necessary to scrutinize each item of public expenditure if we are to apply the principle of economy at the last session we made an immediate increase in the annual budget of more than in benefits conferred on the veterans of three wars public buildings and river and harbor improvement many projects are being broached requiring further large outlays i am convinced that it would be greatly for the welfare of the country if we avoid at the present session all commitments except those of the most pressing nature from a reduction of the debt and taxes will accrue a wider benefit to all the people of this country than from embarking on any new enterprise when our war debt is decreased we shall have resources for expansion until that is accomplished we should confine ourselves to expenditures of the most urgent necessity the department of commerce has performed a most important function in making plans and securing support of all kinds of national enterprise for the elimination of waste efficiency has been greatly promoted through good management and the constantly increasing cooperation of the wage earners throughout the whole realm of private business it is my opinion that this whole development has been predicated on the foundation of a protective tariff as a result of economy of administration by the executive and of appropriation by the congress the end of this fiscal year will leave a surplus in the treasury estimated at unless otherwise ordered such surplus is used for the retirement of the war debt a bond which can be retired today for 100 cents will cost the people 104 cents to retire a year from now while i favor a speedy reduction of the debt as already required by law and in accordance with the promises made to the holders of our liberty bonds when they were issued there is no reason why a balanced portion of surplus revenue should not be applied to a reduction of taxation it can not be repeated too often that the enormous revenues of this nation could not be collected without becoming a charge on all the people whether or not they directly pay taxes everyone who is paying or the bare necessities of fool and shelter and clothing without considering the better things of life is indirectly paying a national tax the nearly owners of securities the additional scores of millions of holders of insurance policies and depositors in savings banks are all paying a national tax millions of individuals and corporations are making a direct contribution to the national treasury which runs from to 25 per cent of their income besides a number of special requirements like automobile and admission taxes whenever the state of the treasury will permit i believe in a reduction of taxation i think the taxpayers are entitled to it but i am not advocating tax reduction merely for the benefit of the taxpayer i am advocating it for the benefit of the country if it appeared feasible i should welcome permanent tax reduction at this time the estimated surplus however for june 30 1928 is not much larger than is required in a going business of nearly we have had but a few months experience under the present revenue act and shall need to know what is developed by the returns of income produced under it which are not required t o be made until about the time this session terminates and what the economic probabilities of the country are in the latter part of 1927 before we can reach any justifiable conclusion as to permanent tax reduction moreover the present surplus results from many nonrecurrent items meantime it is possible to grant some real relief by a simple measure making reductions in the payments which accrue on the 15th of march and june 1927 1 am very strongly of the conviction that this is so much a purely business matter that it ought not to be dealt with in a partisan spirit the congress has already set the notable example of treating tax problems without much reference to party which might well be continued what i desire to advocate most earnestly is relief for the country from unnecessary tax burdens we can not secure that if we stop to engage in a partisan controversy as i do not think any change in the special taxes or tiny permanent reduction is practical i therefore urge both parties of the house ways and means committee to agree on a bill granting the temporary relief which i have indicated such a reduction would directly affect millions of taxpayers release large sums for investment in new enterprise stimulating industrial production and agricultural consumption and indirectly benefiting every family in the whole country these are my convictions stated with full knowledge that it is for the congress to decide whether they judge it best to make such a reduction or leave the surplus for the present year to be applied to retirement of the war debt that also is eventually tax reduction it is estimated that customs receipts for the present fiscal year will exceed the largest which were ever secured from that source the value of our imports for the last fiscal year was an increase of more than 71 per cent since the present tariff law went into effect of these imports about 65 per cent or roughly came in free of duty which means that the united states affords a market to other countries almost equal in value to the total imports of germany and greatly exceeding the total imports of france we have admitted a greater volume of free imports than any other country except england we are therefore levying duties on about of imports nearly half of this or is subject to duties for the protection of agriculture and have their origin in countries other than europe they substantially increased the prices received by our farmers for their produce about more is represented by luxuries such as costly rugs furs precious stones etc this leaves only about of our imports under a schedule of duties which is in general under consideration when there is discussion of lowering the tariff while the duties on this small portion representing only about 12 per cent of our imports undoubtedly represent the difference between a fair degree of prosperity or marked depression to many of our industries and the difference between good pay and steady work or wide unemployment to many of our wage earners it is impossible to conceive how other countries or our own importers could be greatly benefited if these duties are reduced those who are starting an agitation for a reduction of tariff duties partly at least for the benefit of those to whom money has been lent abroad ought to know that there does not seem to be a very large field within the area of our imports in which probable reductions would be advantageous to foreign goods those who wish to benefit foreign producers are much more likely to secure that result by continuing the present enormous purchasing power which comes from our prosperity that hall increased our imports over 71 per cent in four years than from any advantages that are likely to accrue from a general tariff reduction the important place which agriculture holds in the economic and social life of the nation can not be overestimated the national government is justified in putting forth every effort to make the open country a desirable place to live no condition meets this requirement which fails to supply a fair return on labor expended and capital invested while some localities and some particular crops furnish exceptions in general agriculture is continuing to make progress in recovering from the depression of 1921 and 1922 animal products and food products are in a more encouraging position while cotton due to the high prices of past years supplemented by ideal weather conditions has been stimulated to a point of temporary over production acting on the request of the cotton growing interests appointed a committee to assist in carrying out their plans as it result of this cooperation sufficient funds have been pledged to finance the storage and carrying of bales of cotton whether those who own the cotton are willing to put a part of their stock into this plan depends on themselves the federal government has cooperated in providing ample facilities no method of meeting the situation would be adequate which does not contemplate a reduction of about in the acreage for the coming year the responsibility for making the plan effective lies with those who own and finance cotton and cotton lands the department of agriculture estimates the net income of agriculture for the year at only for for this increase has been brought about in part by the method already referred to of federal tax reduction the elimination of waste and increased efficiency in industry the wide gap that existed a few years ago between the index price of agricultural products and the index price of other products has been gradually closing up though the recent depression in cotton has somewhat enlarged it agriculture had on the whole been going higher while industry had been growing lower industrial and commercial activities being carried on for the most part by corporations are taxed at a much higher rate than farming which is carried on by individuals this will inevitably make industrial commodity costs high while war taxation lasts it is because of this circumstance that national tax reduction has a very large indirect benefit upon the farmer though it can not relieve him from the very great burden of the local taxes which he pays directly we have practically relieved the farmer of any federal income tax there is agreement on all sides that some portions of our agricultural industry have lagged behind other industries in recovery from the war and that further improvement in methods of marketing of agricultural products is most desirable there is belief also that the federal government can further contribute to these ends beyond the many helpful measures taken during the last five years through the different acts of congress for advancing the interests of the farmers the packers and stockyards act establishing of the intermediate credit banks for agricultural purposes the purnell act for agricultural research the cooperative marketing act the cooperative marketing act of 1926 amendments to the warehousing act the enlargement of the activities of the department of agriculture enlargement of the scope of loans by the farm loan board the tariff on agricultural products the large federal expenditure in improvement of waterways and highways the reduction of federal taxes in all comprise a great series of governmental actions in the advancement of the special interest of agriculture in determination of what further measures may be undertaken it seems to me there are certain pitfalls which must be avoided and our test in avoiding them should be to avoid disaster to the farmer himself acting upon my recommendation the congress has ordered the interstate commerce commission to investigate the structure directing that such changes shall be made in freight rates as will promote freedom of movement of agricultural products railroad consolidation which i am advocating would also result in a situation where rates could be made more advantageous for farm produce as has recently been done in the revision of rates on fertilizers in the south additional benefit will accrue from the development of our inland waterways the mississippi river system carries a commerce of over tons at a saving of nearly annually the inland waterways corporation operates boats on miles of navigable streams and through its relation with 165 railroads carries freight into and out of 45 states of the union during the past six months it has handled over bushels of grain monthly and by its lower freight rates has raised the price of such grain to the farmer probably cents to 3 cents a bushel the highway system on which the federal government expends about a year is of vital importance to the rural regions the advantages to be derived from a more comprehensive and less expensive system of transportation for agriculture ought to be supplemented by provision for an adequate supply of fertilizer at a lower cost than it is at present obtainable this advantage we are attempting to secure by the proposed development at muscle shoals and there are promising experiments being made in synthetic chemistry for the production of nitrates a survey should be made of the relation of government grazing lands to the livestock industry additional legislation is desirable more definitely to establish the place of grazing in the administration of the national forests properly subordinated to their functions of producing timber and conserving the water supply over acres of grazing lands are still pastured as commons in the public domain with little or no regulation this has made their use so uncertain that it has contributed greatly to the instability of the livestock industry very little of this land is suited to settlement or private ownership some plan ought to be adopted for its use in grazing corresponding broadly to that already successfully applied to the national forests the development of sound and strong cooperative associations is of fundamental importance to our agriculture it is encouraging to note therefore that a vigorous and healthy growth in the cooperative movement is continuing cooperative associations reporting to the department of agriculture at the end of 1925 had on their membership rolls a total of producers their total business in 1925 amounted to approximately compared with in 1915 legislative action to assist cooperative associations and supplement their efforts was passed at the last session of congress important credit measures were also provided by congress in 1923 which have been of inestimable value to the cooperative associations although the federal credit agencies have served agriculture well i think it may be possible to broaden and strengthen the service of these institutions attention is again directed to the surplus problem of agriculture by the present cotton situation surpluses often affect prices of various farm commodities in a disastrous manner and the problem urgently demand a solution discussions both in and out of congress during the past few years have given us a better understanding of the subject and it is my hope that out of the various proposals made the basis will be found for a sound and effective solution upon which agreement can be reached in my opinion cooperative marketing associations will be important aids to the ultimate solution of the problem it may well be however that additional measures will be needed to supplement their efforts i believe all will agree that such measures should not conflict with the best interests of the cooperatives but rather assist and strengthen them in working out this problem to any sound conclusion it is necessary to avoid putting the government into the business of production or marketing or attempting to enact legislation for the purpose of price fixing the farmer does not favor any attempted remedies that partake of these elements he has a sincere and candid desire for assistance if matched by an equally sincere and candid consideration of the different remedies proposed a sound measure of relief ought to result it is unfortunate that no general agreement has been reached by the various agricultural interests upon any of the proposed remedies out of the discussion of various proposals which can be had before the committees of agriculture some measure ought to be perfected which would be generally satisfactory due to the emergency arising from a heavy tropical storm in southern florida i authorized the secretary of agriculture to use certain funds in anticipation of legislation to enable the farmers in that region to plant their crops the department will present a bill ratifying the loans which were made for this purpose federal legislation has been adopted authorizing the cooperation of the government with states and private owners in the protection of forest lands from fire this preventive measure is of such great importance that i have recommended for it an increased appropriation another preventive measure of great economic and sanitary importance is the eradication of tuberculosis in cattle active work is now in progress in of the counties of the united states to secure this result over cattle have been under treatment and the average degree of infection has fallen from per cent to per cent he federal government is making substantial expenditures for this purpose serious damage is threatened to the corn crop by the european corn borer since 1917 it has spread from eastern new england westward into indiana and now covers about square miles it is one of the most formidable pests because it spreads rapidly and is exceedingly difficult of control it has assumed a menace that is of national magnitude and warrants the federal government in extending its cooperation to the state and local agencies which are attempting to prevent its further spread and secure its eradication the whole question of agriculture needs most careful consideration in the past few years the government has given this subject more attention than any other and has held more consultations in relation to it than on any other subject while the government is not to be blamed for failure to perform the impossible the agricultural regions are entitled to know that they have its constant solicitude and sympathy many of the farmers are burdened with debts and taxes which they are unable to carry we are expending in this country many millions of dollars each year to increase farm production we ought now to put more emphasis on the question of farm marketing if a sound solution of a permanent nature can be found for this problem the congress ought not to hesitate to adopt it in previous messages i have referred to the national importance of the proper development of our water resources the great projects of extension of the mississippi system the protection an development of the lower colorado river are before congress and i have previously commented upon them i favor the necessary legislation to expedite these projects engineering studies are being made for connecting the great lakes with the north atlantic either through an canal or by way of the lawrence river these reports will undoubtedly be before the congress during its present session it is unnecessary to dwell upon the great importance of such a waterway not only to our basin but to the commerce and development of practically the whole nation our river and harbor improvement should be continued in accordance with the present policy expenditure of this character is compatible with economy it is in the nature of capital investment work should proceed on the basic trunk lines if this work is to be a success if the country will be content to be moderate and patient and permit improvements to be made where they will do the greatest general good rather than insisting on expenditures at this time on secondary projects our internal waterways can be made a success if proposes legislation results in a gross manifestation of local jealousies and selfishness this program can not be carried out ultimately we can take care of extensions but our first effort should be confined to the main arteries our inland commerce has been put to great inconvenience and expense by reason of the lowering of the water level of the great lakes this is an international problem on which competent engineers are making reports out of their study it is expected that a feasible method will be developed for raising the level to provide relief for our commerce and supply water for drainage whenever a practical plan is presented it ought to be speedily adopted it is increasingly evident that the federal government must in the future take a leading part in the impounding of water for conservation with incidental power for the development of the irrigable lands of the and region the unused waters of the west are found mainly in large rivers works to store and distribute these have such magnitude and cost that they are not attractive to private enterprise water is the irreplaceable natural resource its precipitation can not be increased its storage on the higher reaches of streams to meet growing needs to be used repeatedly as it flows toward the seas is a practical and prudent business policy the united states promises to follow the course of older irrigation countries where recent important irrigation developments have been carried out as national undertakings it is gratifying therefore that conditions on federal reclamation projects have become satisfactory the gross value of crop grown with water from project works increased from in 1924 to in 1925 the adjustments made last year by congress relieved irrigators from paying construction costs on unprofitable land and by so doing inspired new hope and confidence in ability to meet the payments required construction payments by water users last year were the largest in the history of the bureau the anticipated reclamation fund will be fully absorbed for a number of years in the completion of old projects and the construction of projects inaugurated in the past three years we should however continue to investigate and study the possibilities of a carefully planned development of promising projects logically of governmental concern because of their physical magnitude immense cost and the interstate and international problems involved only in this way may we be fully prepared to meet intelligently the needs of our population in the years to come it would be difficult to conceive of any modern activity which contributes more to the necessities and conveniences of life than transportation without it our present agricultural production and practically all of our commerce would be completely prostrated one of the large contributing causes to the present highly satisfactory state of our economic condition is the prompt and dependable service surpassing all our previous records rendered by the railroads this power has been fostered by the spirit of cooperation between federal and state regulatory commissions to render this service more efficient and effective and to promote a more scientific regulation the process of valuing railroad properties should be simplified and the primary valuations should be completed as rapidly as possible the problem of rate reduction would be much simplified by a process of railroad consolidations this principle has already been adopted as federal law experience has shown that a more effective method must be provided studies have already been made and legislation introduced seeking to promote this end it would be of great advantage if it could be taken up at once and speedily enacted the railroad systems of the country and the convenience of all the people are waiting on this important decision it is axiomatic that no agricultural and industrial country can get the full benefit of its own advantages without a merchant marine we have been proceeding under the act of congress that contemplates the establishment of trade routes to be ultimately transferred to private ownership and operation due to temporary conditions abroad and at home we have a large demand just now for certain types of freight vessels some suggestion has been made for new construction i do not feel that we are yet warranted in entering that field such ships as we might build could not be sold after they are launched for anywhere near what they would cost we have expended over out of the public treasury in recent years to make up the losses of operation not counting the depreciation or any cost whatever of our capital investment the great need of our merchant marine is not for more ships but for more freight our merchants are altogether too indifferent about using american ships for the transportation of goods which they send abroad or bring home some of our vessels necessarily need repairs which should be made i do not believe that the operation of our fleet is as economical and efficient as it could be made if placed under a single responsible head leaving the shipping board free to deal with general matters of policy and regulation the department of commerce has for some years urgently presented the necessity for further legislation in order to protect radio listeners from interference between broadcasting stations and to carry out other regulatory functions both branches of congress at the last session passed enactments intended to effect such regulation but the two bills yet remain to be brought into agreement and final passage due to decisions of the courts the authority of the department under the law of 1912 has broken down many more stations have been operating than can be accommodated within the limited number of wave lengths available further stations are in course of construction many stations have departed from the scheme of allocation set down by the department and the whole service of this most important public function has drifted into such chaos as seems likely if not remedied to destroy its great value i most urgently recommend that this legislation should be speedily enacted i do not believe it is desirable to set tip further independent agencies in the government rather i believe it advisable to entrust the important functions of deciding who shall exercise the privilege of radio transmission and under what conditions the assigning of wave lengths and determination of power to a board to be assembled whenever action on such questions becomes necessary there should be right of appeal to the courts from the decisions of such board the administration of the decisions of the board and the other features of regulation and promotion of radio in the public interest together with scientific research should remain in the department of commerce such an arrangement makes for more expert more efficient and more economical administration that an independent agency or board whose duties after initial stages require but little attention in which administrative functions are confused with semijudicial functions and from which of necessity there must be greatly increased personnel and expenditure the great body of our people are made up of wage earners several hundred thousands of them are on the pay rolls of the united states government their condition very largely is fixed by legislation we have recently provided increases in compensation under a method of reclassification and given them the advantage of a liberal retirement system as a support for their declining years most of them are under the merit system which is a guaranty of their intelligence and the efficiency of their service is a demonstration of their loyalty the federal government should continue to set a good example for all other employers in the industries the condition of the wage earner has steadily improved the day is almost entirely unknown skilled labor is well compensated but there are unfortunately a multitude of workers who have not yet come to share in the general prosperity of the nation both the public authorities and private enterprise should be solicitous to advance the welfare of this class the federal government has been seeking to secure this end through a protective tariff through restrictive immigration through requiring safety devices for the prevention of accidents through the granting of workman compensation through civilian vocational rehabilitation and education through employment information bureaus and through such humanitarian relief as was provided in the maternity and infancy legislation it is a satisfaction to report that a more general condition of contentment exists among wage earners and the country is more free from labor disputes than it has been for years while restrictive immigration has been adopted in part for the benefit of the wage earner and in its entirety for the benefit of the country it ought not to because a needless separation of families and dependents from their natural source of support contrary to the dictates of humanity no progress appears to have been made within large areas of the bituminous coal industry toward creation of voluntary machinery by which greater assurance can be given to the public of peaceful adjustment of wage difficulties such as has been accomplished in the anthracite industry this bituminous industry is one of primary necessity and bears a great responsibility to the nation for continuity of supplies as the wage agreements in the unionized section of the industry expire on april 1 next and as conflicts may result which may imperil public interest and have for many years often called for action of the executive in protection of the public i again recommend the passage of such legislation as will assist the executive in dealing with such emergencies through a special temporary board of conciliation and mediation and through administrative agencies for the purpose of distribution of coal and protection of the consumers of coal from profiteering at present the executive is not only without authority to act but is actually prohibited by law from making any expenditure to meet the emergency of a coal famine the federal courts hold a high position in the administration of justice in the world while individual judicial officers have sometimes been subjected to just criticism the courts as a whole have maintained an exceedingly high standard the congress may well consider the question of supplying fair salaries and conferring upon the supreme court the same power on the law side of the district courts that they have always possessed on the equity side a bill is also pending providing for retirement after a certain number of years of service although they have not been consecutive which should have your favorable consideration these faithful servants of the government are about the last that remain to be provided for in the postwar readjustments there has been pending in congress for nearly three years banking legislation to clarify the national bank act and reasonably to increase the powers of the national banks i believe that within the limitation of sound banking principles congress should now and for the future place the national banks upon a fair equality with their competitors the state banks and i trust that means may be found so that the differences on legislation between the senate and the house of representatives may be settled along sound lines and the legislation promptly enacted it would be difficult to overestimate the service which the federal reserve system has already rendered to the country it is necessary only to recall the chaotic condition of our banking organization at the time the federal reserve system was put into operation the old system consisted of a vast number of independent banking units with scattered bank reserves which never could be mobilized in times of greatest need in spite of vast banking resources there was no coordination of reserves or any credit elasticity as a consequence a strain was felt even during periods and when it was necessary to meet other seasonal and regularly recurring needs the federal reserve system is not a panacea for all economic or financial ills it can not prevent depression in certain industries which are experiencing overexpansion of production or contraction of their markets its business is to furnish adequate credit and currency facilities this it has succeeded in doing both during the war and in the more difficult period of deflation and readjustment which followed it enables us to look to the future with confidence and to make plans far ahead based on the belief that the federal reserve system will exercise a steadying influence on credit conditions and thereby prevent tiny sudden or severe reactions from the period of prosperity which we are now enjoying in order that these plans may go forward action should be taken at the present session on the question of renewing the banks charters and thereby insuring a continuation of the policies and present usefulness of the federal reserve system i am in favor of reducing rather than expanding government bureaus which seek to regulate and control the business activities of the people everyone is aware that abuses exist and will exist so long as we are limited by human imperfections unfortunately human nature can not be changed by an act of the legislature when practically the sole remedy for many evils lies in the necessity of the people looking out for themselves and reforming their own abuses they will find that they are relying on a false security if the government assumes to hold out the promise that it is looking out for them and providing reforms for them this principle is preeminently applicable to the national government it is too much assumed that because an abuse exists it is the business of the national government to provide a remedy the presumption should be that it is the business of local and state governments such national action results in encroaching upon the salutary independence of the states and by undertaking to supersede their natural authority fills the land with bureaus and departments which are undertaking to do what it is impossible for them to accomplish and brings our whole system of government into disrespect and disfavor we ought to maintain high standards we ought to punish wrongdoing society has not only the privilege but the absolute duty of protecting itself and its individuals but we can not accomplish this end by adopting a wrong method permanent success lies in local rather than national action unless the locality rises to its own requirements there is an almost irresistible impulse for the national government to intervene the states and the nation should both realize that such action is to be adopted only as a last resort the social of our country requires our constant effort for the amelioration of race prejudice and the extension to all elements of equal opportunity and equal protection under the laws which are guaranteed by the constitution the federal government especially is charged with this obligation in behalf of the colored people of the nation not only their remarkable progress their devotion and their loyalty but our duty to ourselves under our claim that we are an enlightened people requires us to use all our power to protect them from the crime of lynching although violence of this kind has very much decreased while any of it remains we can not justify neglecting to make every effort to eradicate it by law the education of the colored race under government encouragement is proceeding successfully and ought to have continuing support an increasing need exists for properly educated and trained medical skill to be devoted to the service of this race this government holds in sacred trusteeship islands which it has acquired in the east and west indies in all of them the people are more prosperous than at any previous time a system of good roads education and general development is in progress the people are better governed than ever before and generally content in the philippine islands leonard wood has been governor general for five years and has administered his office with tact and ability greatly to the success of the filipino people these are a proud and sensitive race who are making such progress with our cooperation that we can view the results of this experiment with great satisfaction as we are attempting to assist this race toward we should look upon their wishes with great respect granting their requests immediately when they are right yet maintaining a frank firmness in refusing when they are wrong we shall measure their progress in no small part by their acceptance of the terms of the organic law under which the islands are governed and their faithful observance of its provisions need exists for clarifying the duties of the auditor and declaring them to be what everyone had supposed they were we have placed our own expenditures under the supervision of the comptroller general it is not likely that the expenditures in the philippine islands need less supervision than our own the governor general is hampered in his selection of subordinates by the necessity of securing a confirmation which has oftentimes driven him to the expediency of using army officers in work for which civilian experts would be much better fitted means should be provided for this and such other purposes as he may require out of the revenue which this government now turns back to the philippine treasury in order that these possessions might stiffer no seeming neglect i have recently sent carmi a thompson to the islands to make a survey in cooperation with the governor general to suggest what might be done to improve conditions later i may make a more extended report including recommendations the economic development of the islands is very important they ought not to be turned back to the people until they are both politically fitted for and economically independent large areas are adaptable to the production of rubber no one contemplates any time in the future either under the present or a more independent form of government when we should not assume some responsibility for their defense for their economic advantage for the employment of their people and as a contribution to our power of defense which could not be carried on without rubber i believe this industry should be encouraged it is especially adapted to the filipino people themselves who might cultivate it individually on a small acreage it could be carried on extensively by american capital in a way to furnish employment at good wages i am opposed to the promotion of any policy that does not provide for absolute freedom on the part of the wage earners and do not think we should undertake to give power for large holdings of land in the islands against the opposition of the people of the locality any development of the islands must be solely with the first object of benefiting the people of the islands at an early day these possessions should be taken out from under all military control and administered entirely on the civil side of government our policy of national defense is not one of making war but of insuring peace the land and sea force of america both in its domestic and foreign implications is distinctly a peace force it is an arm of the police power to guarantee order and the execution of the law at home and security to our citizens abroad no nation would neglect to provide an army and navy proportionate to its population the extent of its territory and the dignity of the place which it occupies in the world when it is considered that no navy in the world with one exception approaches ours and none surpasses it that our regular army of about men is the equal of any other like number of troops that our entire permanent and reserve land and sea force trained and training consists of a personnel of about and that our annual appropriations are about a year expended under the direction of an exceedingly competent staff it can not be said that our country is neglecting its national defense it is true that a cult of disparagement exists but that candid examination made by the congress through its various committees has always reassured the country and demonstrated that it is maintaining the most adequate defensive forces in these present years that it has ever supported in time of peace this general policy should be kept in effect here and there temporary changes may be made in personnel to meet requirements in other directions attention should be given to submarines cruisers and air forces particular points may need strengthening but as a whole our military power is sufficient the one weak place in the whole line is our still stupendous war debt in any modern campaign the dollars are the shock troops with a depleted treasury in the rear no army can maintain itself in the field a country loaded with debt is a country devoid of the first line of defense economy is the handmaid of preparedness if we wish to be able to defend ourselves to the full extent of our power in the future we shall discharge as soon as possible the financial burden of the last war otherwise we would face a crisis with a part of our capital resources already expended the amount and kind of our military equipment is preeminently a question for the decision of the congress after giving due consideration to the advice of military experts and the available public revenue nothing is more laudable than the cooperation of the agricultural and industrial resources of the country for the purpose of supplying the needs of national defense in time of peril the people employed in these interests volunteered in a most way often at the nominal charge of a dollar a year but the army and navy are not supported for the benefit of supply concerns supply concerns are supported for the benefit of the army and navy the distribution of orders on what is needed from different concerns for the purpose of keeping up equipment and organization is perfectly justified but any attempt to prevail upon the government to purchase beyond its needs ought not to be tolerated it is eminently fair that those who deal with the government should do so at a reasonable profit however public money is expended not that some one may profit by it but in order to serve a public purpose while our policy of national defense will proceed in order that we may be independent and i am opposed to engaging in any attempt at competitive armaments no matter how much or how little some other country may feel constrained to provide we can well afford to set the example not of being dictated to by others but of adopting our own standards we are strong enough to pursue that method which will be a most wholesome model for the rest of the world we are eminently peaceful but we are by no means weak while we submit our differences with others not to the adjudication of force but of reason it is not because we are unable to defend our rights while we are doing our best to eliminate all resort to war for the purpose of settling disputes we can not but remember that the peace we now enjoy had to be won by the sword and that if the rights of our country are to be defended we can not rely for that purpose upon anyone but ourselves we can not shirk the responsibility which is the first requisite of all government of preserving its own integrity and maintaining the rights of its own citizens it is only in accordance with these principles that we can establish any lasting foundations for an honorable and permanent peace it is for these reasons that our country like any other country proposes to provide itself with an army and navy supported by a merchant marine yet these are not for competition with any other power for years we have besought nations to disarm we have recently expressed our willingness at geneva to enter into treaties for the limitation of all types of warships according to the ratio adopted at the washington conference this offer is still pending while we are and shall continue to be armed it is not as a menace but rather a common assurance of tranquility to all the peaceloving people of the world for us to do any less would be to disregard our obligations evade our responsibilities and jeopardize our national honor this country not only because it is bound by honor but because of the satisfaction derived from it has always lavished its bounty upon its veterans for years a service pension has been bestowed upon the grand army on reaching a certain age like provision has been made for the survivors of the spanish war a liberal future compensation has been granted to all the veterans of the world war but it is in the case of the disabled and the dependents that the government exhibits its greatest solicitude this work is being well administered by the veterans bureau the main unfinished feature is that of hospitalization this requirement is being rapidly met various veteran bodies will present to you recommendations which should have your careful consideration at the last session we increased our annual expenditure for pensions and relief on account of the veterans of three wars while i approve of proper relief for all suffering i do not favor any further extension of our pension system at this time we still have in the possession of the government the alien property it has always been the policy of america to hold that private enemy property should not be confiscated in time of war this principle we have scrupulously observed as this property is security for the claims of our citizens and our government we can not relinquish it without adequate provision for their reimbursement legislation for the return of this property accompanied by suitable provisions for the liquidation of the claims of our citizens and our treasury should be adopted if our government releases to foreigners the security which it holds for americans it must at the same time provide satisfactory safeguards for meeting american claims the duly authorized public authorities of this country have made prohibition the law of the land acting under the constitution the congress and the legislatures of practically all the states have adopted legislation for its enforcement some abuses have arisen which require reform under the law the national government has entrusted to the treasury department the especial duty of regulation and enforcement such supplementary legislation as it requires to meet existing conditions should be carefully and speedily enacted failure to support the constitution and observe the law ought not to be tolerated by public opinion especially those in public places who have taken their oath to support the constitution ought to be most scrupulous in its observance officers of the department of justice throughout the country should be vigilant in enforcing the law but local authorities which had always been mainly responsible for the enforcement of law in relation to intoxicating liquor ought not to seek evasion by attempting to shift the burden wholly upon the federal agencies under the constitution the states are jointly charged with the nation in providing for the enforcement of the prohibition amendment some people do not like the amendment some do not like other parts of the constitution some do not like any of it those who entertain such sentiments have a perfect right to seek through legal methods for a change but for any of our inhabitants to observe such parts of the constitution as they like while disregarding others is a doctrine that would break down all protection of life and property and destroy the american system of ordered liberty the foreign policy of this government is well known it is one of peace based on that mutual respect that arises from mutual regard for international rights arid the discharge of international obligations it is our purpose to promote understanding and good will between ourselves and all other people the american people are altogether lacking in an appreciation of the tremendous good fortune that surrounds their international position we have no traditional enemies we are not embarrassed over any disputed territory we have no possessions that are coveted by others they have none that are coveted by us our borders are unfortified we fear no one no one fears us all the world knows that the whole extent of our influence is against war and in favor of peace against the use of force and in favor of negotiation arbitration and adjudication as a method of adjusting international differences we look with disfavor upon all aggressive warfare we are strong enough so that no one can charge us with weakness if we are slow to anger our place is sufficiently established so that we need not be sensitive over trifles our resources are large enough so that we can afford to be generous at the same time we are a nation among nations and recognize a responsibility not only to ourselves but in the interests of a stable and enlightened civilization to protect and defend the international rights of our government and our citizens it is because of our historical detachment and the generations of comparative indifference toward it by other nations that our public is inclined to consider altogether too seriously the reports that we are criticized abroad we never had a larger foreign trade than at the present time our good offices were never more sought and the necessity for our assistance and cooperation was never more universally declared in any time of peace we know that the sentiments which we entertain toward all other nations are those of the most sincere friendship and good will and of all unbounded desire to help which we are perfectly willing to have judged by their fruits in our efforts to adjust our international obligations we have met with a response which when everything is considered i believe history will record as a most remarkable and gratifying demonstration of the sanctity with which civilized nations undertake to discharge their mutual obligations debt settlements have been negotiated with practically all of those who owed us and all finally adjusted but two which are in process of ratification when we consider the real sacrifice that will be necessary on the part of other nations considering all their circumstances to meet their agreed payments we ought to hold them in increased admiration and respect it is true that we have extended to them very generous treatment but it is also true that they have agreed to repay its all that we loaned to them and some interest a special conference on the chinese customs tariff provided for by the treaty between the nine powers relating to the chinese customs tariff signed at washington on february 6 1922 was called by the chinese government to meet at peking on october 26 1925 we participated in this conference through fully empowered delegates and with good will endeavored to cooperate with the other participating powers with a view to putting into effect promises made to china at the washington conference and considering any reasonable proposal that might be made by the chinese government for the revision of the treaties on the subject of china tariff with these aims in view the american delegation at the outset of the conference proposed to put into effect the surtaxes provided for by the washington treaty and to proceed immediately to the negotiation of a treaty which among other things was to make provision for the abolition of taxes collected on goods in transit remove the tariff restrictions in existing treaties and put into effect the national tariff law of china early in april of the present year the central chinese government was ousted from power by opposing warring factions it became impossible under the circumstances to continue the negotiations finally on july 3 the delegates of the foreign powers including those of the united states issued a statement expressing their unanimous and earnest desire to proceed with the work of the conference at the earliest possible moment when the delegates of the chinese government are in a position to resume discussions with the foreign delegates of the problems before the conference we are prepared to resume the negotiations thus interrupted whenever a government representing the chinese people and acting on their behalf presents itself the fact that constant warfare between contending chinese factions has rendered it impossible to bring these negotiations to a successful conclusion is a matter of deep regret throughout these conflicts we have maintained a position of the most careful neutrality our naval vessels in asiatic waters pursuant to treaty rights have been used only for the protection of american citizens silas strawn was sent to china as american commissioner to cooperate with commissioners of the other powers in the establishment of a commission to inquire into the present practice of extraterritorial jurisdiction in china with a view to reporting to the governments of the several powers their findings of fact in regard to these matters the commission commenced its work in january 1926 and agreed upon a joint report which was signed on september 16 1926 the commission report has been received and is being studied with a view to determining our future policy in regard to the question of extraterritorial privileges under treaties between the united states and china the preparatory commission for the disarmament conference met at geneva on may 18 and its work has been proceeding almost continuously since that date it would be premature to attempt to form a judgment as to the progress that has been made the commission has had before it a comprehensive list of questions touching upon all aspects of the question of the limitation of armament in the commission discussions many differences of opinion have developed however i am hopeful that at least some measure of agreement will be reached as the discussions continue the american representation on the commission has consistently tried to be helpful and has kept before it the practical objective to which the commission is working namely actual agreements for the limitation of armaments our representatives will continue their work in that direction one of the most encouraging features of the commission work thus far has been the agreement in principle among the naval experts of a majority of the powers parties to the washington treaty limiting naval armament upon methods and standards for the comparison and further limitation of naval armament it is needless to say that at the proper time i shall be prepared to proceed along practical lines to the conclusion of agreements carrying further the work begun at the washington conference in 1921 many important subjects which it is impossible even to mention in the short space of an annual message you will find fully discussed in the departmental reports a failure to include them here is not to be taken as indicating any lack of interest but only a disinclination to state inadequately what has been much better done in other documents we are embarking on an ambitious building program for the city of washington the memorial bridge is under way with all that it holds for use and beauty new buildings are soon contemplated this program should represent the best that exists in the art and science of architecture into these structures which must be considered as of a permanent nature ought to go the aspirations of the nation its ideals expressed in forms of beauty if our country wishes to compete with others let it not be in the support of armaments but in the making of a beautiful capital city let it express the soul of america whenever an american is at the seat of his government however traveled and cultured he may be he ought to find a city of stately proportion symmetrically laid out and adorned with the best that there is in architecture which would arouse his imagination and stir his patriotic pride in the coming years washington should be not only the art center of our own country but the art center of the world around it should center all that is best in science in learning in letters and in art these are the results that justify the creation of those national resources with which we have been favored america is not and must not be a country without ideals they are useless if they are only visionary they are only valuable if they are practical a nation can not dwell constantly on the mountain tops it has to be replenished and sustained through the ceaseless toil of the less inspiring valleys but its face ought always to be turned upward its vision ought always to be fixed on high we need ideals that can be followed in daily life that can be translated into terms of the home we can not expect to be relieved from toil but we do expect to divest it of degrading conditions work is honorable it is entitled to an honorable recompense we must strive mightily but having striven there is a defect in our political and social system if we are not in general rewarded with success to relieve the land of the burdens that came from the war to release to the individual more of the fruits of his own industry to increase his earning capacity and decrease his hours of labor to enlarge the circle of his vision through good roads and better transportation to lace before him the opportunity for education both in science and in art to leave him free to receive the inspiration of religion all these are ideals which deliver him from the servitude of the body and exalt him to the service of the soul through this emancipation from the things that are material we broaden our dominion over the things that are spiritual
reporting congress state union find impossible characterize one general peace prosperity quarters diplomacy vexed difficult yet unsolved problems nowhere met armed conflict occupations areas flourishing none remain acute chronic depression country requires much new policies steady continuation already crowned abundant success often repeated common world engaged liquidating war present short session great amount new legislation possible order comprehend desirable survey general situation necessary large amount time consumed passage appropriation bills congress opening session would make appropriations continue two years much time would saved could either devoted consideration general needs country would result decreasing work legislation present state prosperity greatly promoted three important causes one economy resulting reduction reform national taxation another elimination many kinds waste third general raising standards efficiency combination brought perfectly astonishing result reduction index price commodities increase index rate wages secured lowering cost produce raising ability consume prosperity resulting causes rests securest foundations gathers strength progress promoting progress chief part national government plays lies field economy whatever doubts may entertained necessity policy beneficial results would accrue people nation wisdom must considered thoroughly demonstrated may appeared novel perhaps brilliant conception turned preeminently sound failed work surely brought results excused temporary expedient adopted lesser evil remedy abuse palliative seeking treat symptoms major operation eradication source large number social diseases nothing easier expenditure public money appear belong anybody temptation overwhelming bestow somebody results extravagance ruinous property country like freedom country belongs people country empowered government take dollar except necessary public purpose constitution conferred right sound economics would forbid nothing destructive progress nation government extravagance means increase burden taxation dissipation returns enterprise decrease real value wages ultimate stagnation decay whole theory institutions based liberty independence individual dependent support therefore entitled rewards industry deprived earns others may benefited earn lie saves private effort wasted government extravagance national activities become vast necessary scrutinize item public expenditure apply principle economy last session made immediate increase annual budget benefits conferred veterans three wars public buildings river harbor improvement many projects broached requiring large outlays convinced would greatly welfare country avoid present session commitments except pressing nature reduction debt taxes accrue wider benefit people country embarking new enterprise war debt decreased shall resources expansion accomplished confine expenditures urgent necessity department commerce performed important function making plans securing support kinds national enterprise elimination waste efficiency greatly promoted good management constantly increasing cooperation wage earners throughout whole realm private business opinion whole development predicated foundation protective tariff result economy administration executive appropriation congress end fiscal year leave surplus treasury estimated unless otherwise ordered surplus used retirement war debt bond retired today 100 cents cost people 104 cents retire year favor speedy reduction debt already required law accordance promises made holders liberty bonds issued reason balanced portion surplus revenue applied reduction taxation repeated often enormous revenues nation could collected without becoming charge people whether directly pay taxes everyone paying bare necessities fool shelter clothing without considering better things life indirectly paying national tax nearly owners securities additional scores millions holders insurance policies depositors savings banks paying national tax millions individuals corporations making direct contribution national treasury runs 25 per cent income besides number special requirements like automobile admission taxes whenever state treasury permit believe reduction taxation think taxpayers entitled advocating tax reduction merely benefit taxpayer advocating benefit country appeared feasible welcome permanent tax reduction time estimated surplus however june 30 1928 much larger required going business nearly months experience present revenue act shall need know developed returns income produced required made time session terminates economic probabilities country latter part 1927 reach justifiable conclusion permanent tax reduction moreover present surplus results many nonrecurrent items meantime possible grant real relief simple measure making reductions payments accrue 15th march june 1927 1 strongly conviction much purely business matter ought dealt partisan spirit congress already set notable example treating tax problems without much reference party might well continued desire advocate earnestly relief country unnecessary tax burdens secure stop engage partisan controversy think change special taxes tiny permanent reduction practical therefore urge parties house ways means committee agree bill granting temporary relief indicated reduction would directly affect millions taxpayers release large sums investment new enterprise stimulating industrial production agricultural consumption indirectly benefiting every family whole country convictions stated full knowledge congress decide whether judge best make reduction leave surplus present year applied retirement war debt also eventually tax reduction estimated customs receipts present fiscal year exceed largest ever secured source value imports last fiscal year increase 71 per cent since present tariff law went effect imports 65 per cent roughly came free duty means united states affords market countries almost equal value total imports germany greatly exceeding total imports france admitted greater volume free imports country except england therefore levying duties imports nearly half subject duties protection agriculture origin countries europe substantially increased prices received farmers produce represented luxuries costly rugs furs precious stones etc leaves imports schedule duties general consideration discussion lowering tariff duties small portion representing 12 per cent imports undoubtedly represent difference fair degree prosperity marked depression many industries difference good pay steady work wide unemployment many wage earners impossible conceive countries importers could greatly benefited duties reduced starting agitation reduction tariff duties partly least benefit money lent abroad ought know seem large field within area imports probable reductions would advantageous foreign goods wish benefit foreign producers much likely secure result continuing present enormous purchasing power comes prosperity hall increased imports 71 per cent four years advantages likely accrue general tariff reduction important place agriculture holds economic social life nation overestimated national government justified putting forth every effort make open country desirable place live condition meets requirement fails supply fair return labor expended capital invested localities particular crops furnish exceptions general agriculture continuing make progress recovering depression 1921 1922 animal products food products encouraging position cotton due high prices past years supplemented ideal weather conditions stimulated point temporary production acting request cotton growing interests appointed committee assist carrying plans result cooperation sufficient funds pledged finance storage carrying bales cotton whether cotton willing put part stock plan depends federal government cooperated providing ample facilities method meeting situation would adequate contemplate reduction acreage coming year responsibility making plan effective lies finance cotton cotton lands department agriculture estimates net income agriculture year increase brought part method already referred federal tax reduction elimination waste increased efficiency industry wide gap existed years ago index price agricultural products index price products gradually closing though recent depression cotton somewhat enlarged agriculture whole going higher industry growing lower industrial commercial activities carried part corporations taxed much higher rate farming carried individuals inevitably make industrial commodity costs high war taxation lasts circumstance national tax reduction large indirect benefit upon farmer though relieve great burden local taxes pays directly practically relieved farmer federal income tax agreement sides portions agricultural industry lagged behind industries recovery war improvement methods marketing agricultural products desirable belief also federal government contribute ends beyond many helpful measures taken last five years different acts congress advancing interests farmers packers stockyards act establishing intermediate credit banks agricultural purposes purnell act agricultural research cooperative marketing act cooperative marketing act 1926 amendments warehousing act enlargement activities department agriculture enlargement scope loans farm loan board tariff agricultural products large federal expenditure improvement waterways highways reduction federal taxes comprise great series governmental actions advancement special interest agriculture determination measures may undertaken seems certain pitfalls must avoided test avoiding avoid disaster farmer acting upon recommendation congress ordered interstate commerce commission investigate structure directing changes shall made freight rates promote freedom movement agricultural products railroad consolidation advocating would also result situation rates could made advantageous farm produce recently done revision rates fertilizers south additional benefit accrue development inland waterways mississippi river system carries commerce tons saving nearly annually inland waterways corporation operates boats miles navigable streams relation 165 railroads carries freight 45 states union past six months handled bushels grain monthly lower freight rates raised price grain farmer probably cents 3 cents bushel highway system federal government expends year vital importance rural regions advantages derived comprehensive less expensive system transportation agriculture ought supplemented provision adequate supply fertilizer lower cost present obtainable advantage attempting secure proposed development muscle shoals promising experiments made synthetic chemistry production nitrates survey made relation government grazing lands livestock industry additional legislation desirable definitely establish place grazing administration national forests properly subordinated functions producing timber conserving water supply acres grazing lands still pastured commons public domain little regulation made use uncertain contributed greatly instability livestock industry little land suited settlement private ownership plan ought adopted use grazing corresponding broadly already successfully applied national forests development sound strong cooperative associations fundamental importance agriculture encouraging note therefore vigorous healthy growth cooperative movement continuing cooperative associations reporting department agriculture end 1925 membership rolls total producers total business 1925 amounted approximately compared 1915 legislative action assist cooperative associations supplement efforts passed last session congress important credit measures also provided congress 1923 inestimable value cooperative associations although federal credit agencies served agriculture well think may possible broaden strengthen service institutions attention directed surplus problem agriculture present cotton situation surpluses often affect prices various farm commodities disastrous manner problem urgently demand solution discussions congress past years given us better understanding subject hope various proposals made basis found sound effective solution upon agreement reached opinion cooperative marketing associations important aids ultimate solution problem may well however additional measures needed supplement efforts believe agree measures conflict best interests cooperatives rather assist strengthen working problem sound conclusion necessary avoid putting government business production marketing attempting enact legislation purpose price fixing farmer favor attempted remedies partake elements sincere candid desire assistance matched equally sincere candid consideration different remedies proposed sound measure relief ought result unfortunate general agreement reached various agricultural interests upon proposed remedies discussion various proposals committees agriculture measure ought perfected would generally satisfactory due emergency arising heavy tropical storm southern florida authorized secretary agriculture use certain funds anticipation legislation enable farmers region plant crops department present bill ratifying loans made purpose federal legislation adopted authorizing cooperation government states private owners protection forest lands fire preventive measure great importance recommended increased appropriation another preventive measure great economic sanitary importance eradication tuberculosis cattle active work progress counties united states secure result cattle treatment average degree infection fallen per cent per cent federal government making substantial expenditures purpose serious damage threatened corn crop european corn borer since 1917 spread eastern new england westward indiana covers square miles one formidable pests spreads rapidly exceedingly difficult control assumed menace national magnitude warrants federal government extending cooperation state local agencies attempting prevent spread secure eradication whole question agriculture needs careful consideration past years government given subject attention held consultations relation subject government blamed failure perform impossible agricultural regions entitled know constant solicitude sympathy many farmers burdened debts taxes unable carry expending country many millions dollars year increase farm production ought put emphasis question farm marketing sound solution permanent nature found problem congress ought hesitate adopt previous messages referred national importance proper development water resources great projects extension mississippi system protection development lower colorado river congress previously commented upon favor necessary legislation expedite projects engineering studies made connecting great lakes north atlantic either canal way lawrence river reports undoubtedly congress present session unnecessary dwell upon great importance waterway basin commerce development practically whole nation river harbor improvement continued accordance present policy expenditure character compatible economy nature capital investment work proceed basic trunk lines work success country content moderate patient permit improvements made greatest general good rather insisting expenditures time secondary projects internal waterways made success proposes legislation results gross manifestation local jealousies selfishness program carried ultimately take care extensions first effort confined main arteries inland commerce put great inconvenience expense reason lowering water level great lakes international problem competent engineers making reports study expected feasible method developed raising level provide relief commerce supply water drainage whenever practical plan presented ought speedily adopted increasingly evident federal government must future take leading part impounding water conservation incidental power development irrigable lands region unused waters west found mainly large rivers works store distribute magnitude cost attractive private enterprise water irreplaceable natural resource precipitation increased storage higher reaches streams meet growing needs used repeatedly flows toward seas practical prudent business policy united states promises follow course older irrigation countries recent important irrigation developments carried national undertakings gratifying therefore conditions federal reclamation projects become satisfactory gross value crop grown water project works increased 1924 1925 adjustments made last year congress relieved irrigators paying construction costs unprofitable land inspired new hope confidence ability meet payments required construction payments water users last year largest history bureau anticipated reclamation fund fully absorbed number years completion old projects construction projects inaugurated past three years however continue investigate study possibilities carefully planned development promising projects logically governmental concern physical magnitude immense cost interstate international problems involved way may fully prepared meet intelligently needs population years come would difficult conceive modern activity contributes necessities conveniences life transportation without present agricultural production practically commerce would completely prostrated one large contributing causes present highly satisfactory state economic condition prompt dependable service surpassing previous records rendered railroads power fostered spirit cooperation federal state regulatory commissions render service efficient effective promote scientific regulation process valuing railroad properties simplified primary valuations completed rapidly possible problem rate reduction would much simplified process railroad consolidations principle already adopted federal law experience shown effective method must provided studies already made legislation introduced seeking promote end would great advantage could taken speedily enacted railroad systems country convenience people waiting important decision axiomatic agricultural industrial country get full benefit advantages without merchant marine proceeding act congress contemplates establishment trade routes ultimately transferred private ownership operation due temporary conditions abroad home large demand certain types freight vessels suggestion made new construction feel yet warranted entering field ships might build could sold launched anywhere near would cost expended public treasury recent years make losses operation counting depreciation cost whatever capital investment great need merchant marine ships freight merchants altogether indifferent using american ships transportation goods send abroad bring home vessels necessarily need repairs made believe operation fleet economical efficient could made placed single responsible head leaving shipping board free deal general matters policy regulation department commerce years urgently presented necessity legislation order protect radio listeners interference broadcasting stations carry regulatory functions branches congress last session passed enactments intended effect regulation two bills yet remain brought agreement final passage due decisions courts authority department law 1912 broken many stations operating accommodated within limited number wave lengths available stations course construction many stations departed scheme allocation set department whole service important public function drifted chaos seems likely remedied destroy great value urgently recommend legislation speedily enacted believe desirable set tip independent agencies government rather believe advisable entrust important functions deciding shall exercise privilege radio transmission conditions assigning wave lengths determination power board assembled whenever action questions becomes necessary right appeal courts decisions board administration decisions board features regulation promotion radio public interest together scientific research remain department commerce arrangement makes expert efficient economical administration independent agency board whose duties initial stages require little attention administrative functions confused semijudicial functions necessity must greatly increased personnel expenditure great body people made wage earners several hundred thousands pay rolls united states government condition largely fixed legislation recently provided increases compensation method reclassification given advantage liberal retirement system support declining years merit system guaranty intelligence efficiency service demonstration loyalty federal government continue set good example employers industries condition wage earner steadily improved day almost entirely unknown skilled labor well compensated unfortunately multitude workers yet come share general prosperity nation public authorities private enterprise solicitous advance welfare class federal government seeking secure end protective tariff restrictive immigration requiring safety devices prevention accidents granting workman compensation civilian vocational rehabilitation education employment information bureaus humanitarian relief provided maternity infancy legislation satisfaction report general condition contentment exists among wage earners country free labor disputes years restrictive immigration adopted part benefit wage earner entirety benefit country ought needless separation families dependents natural source support contrary dictates humanity progress appears made within large areas bituminous coal industry toward creation voluntary machinery greater assurance given public peaceful adjustment wage difficulties accomplished anthracite industry bituminous industry one primary necessity bears great responsibility nation continuity supplies wage agreements unionized section industry expire april 1 next conflicts may result may imperil public interest many years often called action executive protection public recommend passage legislation assist executive dealing emergencies special temporary board conciliation mediation administrative agencies purpose distribution coal protection consumers coal profiteering present executive without authority act actually prohibited law making expenditure meet emergency coal famine federal courts hold high position administration justice world individual judicial officers sometimes subjected criticism courts whole maintained exceedingly high standard congress may well consider question supplying fair salaries conferring upon supreme court power law side district courts always possessed equity side bill also pending providing retirement certain number years service although consecutive favorable consideration faithful servants government last remain provided postwar readjustments pending congress nearly three years banking legislation clarify national bank act reasonably increase powers national banks believe within limitation sound banking principles congress future place national banks upon fair equality competitors state banks trust means may found differences legislation senate house representatives may settled along sound lines legislation promptly enacted would difficult overestimate service federal reserve system already rendered country necessary recall chaotic condition banking organization time federal reserve system put operation old system consisted vast number independent banking units scattered bank reserves never could mobilized times greatest need spite vast banking resources coordination reserves credit elasticity consequence strain felt even periods necessary meet seasonal regularly recurring needs federal reserve system panacea economic financial ills prevent depression certain industries experiencing overexpansion production contraction markets business furnish adequate credit currency facilities succeeded war difficult period deflation readjustment followed enables us look future confidence make plans far ahead based belief federal reserve system exercise steadying influence credit conditions thereby prevent tiny sudden severe reactions period prosperity enjoying order plans may go forward action taken present session question renewing banks charters thereby insuring continuation policies present usefulness federal reserve system favor reducing rather expanding government bureaus seek regulate control business activities people everyone aware abuses exist exist long limited human imperfections unfortunately human nature changed act legislature practically sole remedy many evils lies necessity people looking reforming abuses find relying false security government assumes hold promise looking providing reforms principle preeminently applicable national government much assumed abuse exists business national government provide remedy presumption business local state governments national action results encroaching upon salutary independence states undertaking supersede natural authority fills land bureaus departments undertaking impossible accomplish brings whole system government disrespect disfavor ought maintain high standards ought punish wrongdoing society privilege absolute duty protecting individuals accomplish end adopting wrong method permanent success lies local rather national action unless locality rises requirements almost irresistible impulse national government intervene states nation realize action adopted last resort social country requires constant effort amelioration race prejudice extension elements equal opportunity equal protection laws guaranteed constitution federal government especially charged obligation behalf colored people nation remarkable progress devotion loyalty duty claim enlightened people requires us use power protect crime lynching although violence kind much decreased remains justify neglecting make every effort eradicate law education colored race government encouragement proceeding successfully ought continuing support increasing need exists properly educated trained medical skill devoted service race government holds sacred trusteeship islands acquired east west indies people prosperous previous time system good roads education general development progress people better governed ever generally content philippine islands leonard wood governor general five years administered office tact ability greatly success filipino people proud sensitive race making progress cooperation view results experiment great satisfaction attempting assist race toward look upon wishes great respect granting requests immediately right yet maintaining frank firmness refusing wrong shall measure progress small part acceptance terms organic law islands governed faithful observance provisions need exists clarifying duties auditor declaring everyone supposed placed expenditures supervision comptroller general likely expenditures philippine islands need less supervision governor general hampered selection subordinates necessity securing confirmation oftentimes driven expediency using army officers work civilian experts would much better fitted means provided purposes may require revenue government turns back philippine treasury order possessions might stiffer seeming neglect recently sent carmi thompson islands make survey cooperation governor general suggest might done improve conditions later may make extended report including recommendations economic development islands important ought turned back people politically fitted economically independent large areas adaptable production rubber one contemplates time future either present independent form government assume responsibility defense economic advantage employment people contribution power defense could carried without rubber believe industry encouraged especially adapted filipino people might cultivate individually small acreage could carried extensively american capital way furnish employment good wages opposed promotion policy provide absolute freedom part wage earners think undertake give power large holdings land islands opposition people locality development islands must solely first object benefiting people islands early day possessions taken military control administered entirely civil side government policy national defense one making war insuring peace land sea force america domestic foreign implications distinctly peace force arm police power guarantee order execution law home security citizens abroad nation would neglect provide army navy proportionate population extent territory dignity place occupies world considered navy world one exception approaches none surpasses regular army men equal like number troops entire permanent reserve land sea force trained training consists personnel annual appropriations year expended direction exceedingly competent staff said country neglecting national defense true cult disparagement exists candid examination made congress various committees always reassured country demonstrated maintaining adequate defensive forces present years ever supported time peace general policy kept effect temporary changes may made personnel meet requirements directions attention given submarines cruisers air forces particular points may need strengthening whole military power sufficient one weak place whole line still stupendous war debt modern campaign dollars shock troops depleted treasury rear army maintain field country loaded debt country devoid first line defense economy handmaid preparedness wish able defend full extent power future shall discharge soon possible financial burden last war otherwise would face crisis part capital resources already expended amount kind military equipment preeminently question decision congress giving due consideration advice military experts available public revenue nothing laudable cooperation agricultural industrial resources country purpose supplying needs national defense time peril people employed interests volunteered way often nominal charge dollar year army navy supported benefit supply concerns supply concerns supported benefit army navy distribution orders needed different concerns purpose keeping equipment organization perfectly justified attempt prevail upon government purchase beyond needs ought tolerated eminently fair deal government reasonable profit however public money expended one may profit order serve public purpose policy national defense proceed order may independent opposed engaging attempt competitive armaments matter much little country may feel constrained provide well afford set example dictated others adopting standards strong enough pursue method wholesome model rest world eminently peaceful means weak submit differences others adjudication force reason unable defend rights best eliminate resort war purpose settling disputes remember peace enjoy sword rights country defended rely purpose upon anyone shirk responsibility first requisite government preserving integrity maintaining rights citizens accordance principles establish lasting foundations honorable permanent peace reasons country like country proposes provide army navy supported merchant marine yet competition power years besought nations disarm recently expressed willingness geneva enter treaties limitation types warships according ratio adopted washington conference offer still pending shall continue armed menace rather common assurance tranquility peaceloving people world us less would disregard obligations evade responsibilities jeopardize national honor country bound honor satisfaction derived always lavished bounty upon veterans years service pension bestowed upon grand army reaching certain age like provision made survivors spanish war liberal future compensation granted veterans world war case disabled dependents government exhibits greatest solicitude work well administered veterans bureau main unfinished feature hospitalization requirement rapidly met various veteran bodies present recommendations careful consideration last session increased annual expenditure pensions relief account veterans three wars approve proper relief suffering favor extension pension system time still possession government alien property always policy america hold private enemy property confiscated time war principle scrupulously observed property security claims citizens government relinquish without adequate provision reimbursement legislation return property accompanied suitable provisions liquidation claims citizens treasury adopted government releases foreigners security holds americans must time provide satisfactory safeguards meeting american claims duly authorized public authorities country made prohibition law land acting constitution congress legislatures practically states adopted legislation enforcement abuses arisen require reform law national government entrusted treasury department especial duty regulation enforcement supplementary legislation requires meet existing conditions carefully speedily enacted failure support constitution observe law ought tolerated public opinion especially public places taken oath support constitution ought scrupulous observance officers department justice throughout country vigilant enforcing law local authorities always mainly responsible enforcement law relation intoxicating liquor ought seek evasion attempting shift burden wholly upon federal agencies constitution states jointly charged nation providing enforcement prohibition amendment people like amendment like parts constitution like entertain sentiments perfect right seek legal methods change inhabitants observe parts constitution like disregarding others doctrine would break protection life property destroy american system ordered liberty foreign policy government well known one peace based mutual respect arises mutual regard international rights arid discharge international obligations purpose promote understanding good people american people altogether lacking appreciation tremendous good fortune surrounds international position traditional enemies embarrassed disputed territory possessions coveted others none coveted us borders unfortified fear one one fears us world knows whole extent influence war favor peace use force favor negotiation arbitration adjudication method adjusting international differences look disfavor upon aggressive warfare strong enough one charge us weakness slow anger place sufficiently established need sensitive trifles resources large enough afford generous time nation among nations recognize responsibility interests stable enlightened civilization protect defend international rights government citizens historical detachment generations comparative indifference toward nations public inclined consider altogether seriously reports criticized abroad never larger foreign trade present time good offices never sought necessity assistance cooperation never universally declared time peace know sentiments entertain toward nations sincere friendship good unbounded desire help perfectly willing judged fruits efforts adjust international obligations met response everything considered believe history record remarkable gratifying demonstration sanctity civilized nations undertake discharge mutual obligations debt settlements negotiated practically owed us finally adjusted two process ratification consider real sacrifice necessary part nations considering circumstances meet agreed payments ought hold increased admiration respect true extended generous treatment also true agreed repay loaned interest special conference chinese customs tariff provided treaty nine powers relating chinese customs tariff signed washington february 6 1922 called chinese government meet peking october 26 1925 participated conference fully empowered delegates good endeavored cooperate participating powers view putting effect promises made china washington conference considering reasonable proposal might made chinese government revision treaties subject china tariff aims view american delegation outset conference proposed put effect surtaxes provided washington treaty proceed immediately negotiation treaty among things make provision abolition taxes collected goods transit remove tariff restrictions existing treaties put effect national tariff law china early april present year central chinese government ousted power opposing warring factions became impossible circumstances continue negotiations finally july 3 delegates foreign powers including united states issued statement expressing unanimous earnest desire proceed work conference earliest possible moment delegates chinese government position resume discussions foreign delegates problems conference prepared resume negotiations thus interrupted whenever government representing chinese people acting behalf presents fact constant warfare contending chinese factions rendered impossible bring negotiations successful conclusion matter deep regret throughout conflicts maintained position careful neutrality naval vessels asiatic waters pursuant treaty rights used protection american citizens silas strawn sent china american commissioner cooperate commissioners powers establishment commission inquire present practice extraterritorial jurisdiction china view reporting governments several powers findings fact regard matters commission commenced work january 1926 agreed upon joint report signed september 16 1926 commission report received studied view determining future policy regard question extraterritorial privileges treaties united states china preparatory commission disarmament conference met geneva may 18 work proceeding almost continuously since date would premature attempt form judgment progress made commission comprehensive list questions touching upon aspects question limitation armament commission discussions many differences opinion developed however hopeful least measure agreement reached discussions continue american representation commission consistently tried helpful kept practical objective commission working namely actual agreements limitation armaments representatives continue work direction one encouraging features commission work thus far agreement principle among naval experts majority powers parties washington treaty limiting naval armament upon methods standards comparison limitation naval armament needless say proper time shall prepared proceed along practical lines conclusion agreements carrying work begun washington conference 1921 many important subjects impossible even mention short space annual message find fully discussed departmental reports failure include taken indicating lack interest disinclination state inadequately much better done documents embarking ambitious building program city washington memorial bridge way holds use beauty new buildings soon contemplated program represent best exists art science architecture structures must considered permanent nature ought go aspirations nation ideals expressed forms beauty country wishes compete others let support armaments making beautiful capital city let express soul america whenever american seat government however traveled cultured may ought find city stately proportion symmetrically laid adorned best architecture would arouse imagination stir patriotic pride coming years washington art center country art center world around center best science learning letters art results justify creation national resources favored america must country without ideals useless visionary valuable practical nation dwell constantly mountain tops replenished sustained ceaseless toil less inspiring valleys face ought always turned upward vision ought always fixed high need ideals followed daily life translated terms home expect relieved toil expect divest degrading conditions work honorable entitled honorable recompense must strive mightily striven defect political social system general rewarded success relieve land burdens came war release individual fruits industry increase earning capacity decrease hours labor enlarge circle vision good roads better transportation lace opportunity education science art leave free receive inspiration religion ideals deliver servitude body exalt service soul emancipation things material broaden dominion things spiritual
report congress state union find impossible characterize one general peace prosperity quarter diplomacy vexed difficult yet unsolved problem nowhere meet arm conflict occupation area flourish none remain acute chronic depression country require much new policy steady continuation already crown abundant success often repeat common world engage liquidate war present short session great amount new legislation possible order comprehend desirable survey general situation necessary large amount time consume passage appropriation bill congress opening session would make appropriation continue two year much time would save could either devote consideration general need country would result decrease work legislation present state prosperity greatly promote three important cause one economy result reduction reform national taxation another elimination many kind waste third general raising standard efficiency combination bring perfectly astonish result reduction index price commodity increase index rate wage secure lower cost produce raise ability consume prosperity result cause rest secure foundation gather strength progress promote progress chief part national government play lie field economy whatever doubt may entertain necessity policy beneficial result would accrue people nation wisdom must consider thoroughly demonstrate may appear novel perhaps brilliant conception turn preeminently sound fail work surely bring result excuse temporary expedient adopt lesser evil remedy abuse palliative seek treat symptom major operation eradication source large number social disease nothing easy expenditure public money appear belong anybody temptation overwhelm bestow somebody result extravagance ruinous property country like freedom country belong people country empower government take dollar except necessary public purpose constitution confer right sound economics would forbid nothing destructive progress nation government extravagance mean increase burden taxation dissipation return enterprise decrease real value wage ultimate stagnation decay whole theory institution base liberty independence individual dependent support therefore entitle reward industry deprive earn others may benefit earn lie save private effort waste government extravagance national activity become vast necessary scrutinize item public expenditure apply principle economy last session make immediate increase annual budget benefit confer veteran three war public building river harbor improvement many project broach require large outlay convince would greatly welfare country avoid present session commitment except press nature reduction debt tax accrue wide benefit people country embark new enterprise war debt decrease shall resource expansion accomplish confine expenditure urgent necessity department commerce perform important function making plan secure support kind national enterprise elimination waste efficiency greatly promote good management constantly increase cooperation wage earner throughout whole realm private business opinion whole development predicate foundation protective tariff result economy administration executive appropriation congress end fiscal year leave surplus treasury estimate unless otherwise ordered surplus use retirement war debt bond retire today 100 cent cost people 104 cent retire year favor speedy reduction debt already require law accordance promise make holder liberty bond issue reason balanced portion surplus revenue apply reduction taxation repeat often enormous revenue nation could collect without become charge people whether directly pay tax everyone pay bare necessity fool shelter clothing without consider good thing life indirectly pay national tax nearly owner security additional score million holder insurance policy depositor saving bank pay national tax million individual corporation make direct contribution national treasury run 25 per cent income besides number special requirement like automobile admission tax whenever state treasury permit believe reduction taxation think taxpayer entitle advocate tax reduction merely benefit taxpayer advocate benefit country appear feasible welcome permanent tax reduction time estimate surplus however june 30 1928 much large require go business nearly month experience present revenue act shall need know developed return income produce require make time session terminates economic probability country latter part 1927 reach justifiable conclusion permanent tax reduction moreover present surplus result many nonrecurrent item meantime possible grant real relief simple measure make reduction payment accrue 15th march june 1927 1 strongly conviction much purely business matter ought deal partisan spirit congress already set notable example treat tax problem without much reference party might well continue desire advocate earnestly relief country unnecessary tax burden secure stop engage partisan controversy think change special tax tiny permanent reduction practical therefore urge party house way mean committee agree bill grant temporary relief indicate reduction would directly affect million taxpayer release large sum investment new enterprise stimulate industrial production agricultural consumption indirectly benefit every family whole country conviction state full knowledge congress decide whether judge best make reduction leave surplus present year apply retirement war debt also eventually tax reduction estimate custom receipt present fiscal year exceed large ever secure source value import last fiscal year increase 71 per cent since present tariff law go effect import 65 per cent roughly come free duty mean united state afford market country almost equal value total import germany greatly exceed total import france admit great volume free import country except england therefore levying duty import nearly half subject duty protection agriculture origin country europe substantially increase price receive farmer produce represented luxury costly rug furs precious stone etc leave import schedule duty general consideration discussion lower tariff duty small portion represent 12 per cent import undoubtedly represent difference fair degree prosperity mark depression many industry difference good pay steady work wide unemployment many wage earner impossible conceive country importer could greatly benefited duty reduce start agitation reduction tariff duty partly least benefit money lent abroad ought know seem large field within area import probable reduction would advantageous foreign good wish benefit foreign producer much likely secure result continue present enormous purchase power come prosperity hall increase import 71 per cent four year advantage likely accrue general tariff reduction important place agriculture hold economic social life nation overestimate national government justify put forth every effort make open country desirable place live condition meet requirement fails supply fair return labor expend capital invested locality particular crop furnish exception general agriculture continue make progress recover depression 1921 1922 animal product food product encouraging position cotton due high price past year supplement ideal weather condition stimulate point temporary production act request cotton grow interest appoint committee assist carry plan result cooperation sufficient fund pledge finance storage carry bale cotton whether cotton willing put part stock plan depend federal government cooperate provide ample facility method meeting situation would adequate contemplate reduction acreage come year responsibility making plan effective lie finance cotton cotton land department agriculture estimate net income agriculture year increase bring part method already refer federal tax reduction elimination waste increase efficiency industry wide gap exist year ago index price agricultural product index price product gradually close though recent depression cotton somewhat enlarge agriculture whole go high industry grow lower industrial commercial activity carry part corporation taxed much high rate farm carry individual inevitably make industrial commodity cost high war taxation last circumstance national tax reduction large indirect benefit upon farmer though relieve great burden local tax pay directly practically relieve farmer federal income tax agreement side portion agricultural industry lag behind industry recovery war improvement method market agricultural product desirable belief also federal government contribute end beyond many helpful measure take last five year different act congress advance interest farmer packer stockyard act establish intermediate credit bank agricultural purpose purnell act agricultural research cooperative marketing act cooperative marketing act 1926 amendment warehouse act enlargement activity department agriculture enlargement scope loan farm loan board tariff agricultural product large federal expenditure improvement waterways highway reduction federal tax comprise great series governmental action advancement special interest agriculture determination measure may undertake seem certain pitfall must avoid test avoid avoid disaster farmer act upon recommendation congress order interstate commerce commission investigate structure direct change shall make freight rate promote freedom movement agricultural product railroad consolidation advocate would also result situation rate could make advantageous farm produce recently do revision rate fertilizer south additional benefit accrue development inland waterway mississippi river system carry commerce ton save nearly annually inland waterway corporation operate boat mile navigable stream relation 165 railroad carry freight 45 state union past six month handle bushel grain monthly low freight rate raise price grain farmer probably cent 3 cent bushel highway system federal government expends year vital importance rural region advantage derive comprehensive less expensive system transportation agriculture ought supplement provision adequate supply fertilizer low cost present obtainable advantage attempt secure propose development muscle shoal promise experiment make synthetic chemistry production nitrate survey make relation government graze land livestock industry additional legislation desirable definitely establish place graze administration national forest properly subordinate function produce timber conserve water supply acres graze land still pasture common public domain little regulation make use uncertain contribute greatly instability livestock industry little land suit settlement private ownership plan ought adopt use graze correspond broadly already successfully apply national forest development sound strong cooperative association fundamental importance agriculture encourage note therefore vigorous healthy growth cooperative movement continue cooperative association report department agriculture end 1925 membership roll total producer total business 1925 amount approximately compare 1915 legislative action assist cooperative association supplement effort pass last session congress important credit measure also provide congress 1923 inestimable value cooperative association although federal credit agency serve agriculture well think may possible broaden strengthen service institution attention direct surplus problem agriculture present cotton situation surplus often affect price various farm commodity disastrous manner problem urgently demand solution discussion congress past year give u well understand subject hope various proposal make basis find sound effective solution upon agreement reach opinion cooperative marketing association important aid ultimate solution problem may well however additional measure need supplement effort believe agree measure conflict best interest cooperatives rather assist strengthen work problem sound conclusion necessary avoid put government business production marketing attempt enact legislation purpose price fix farmer favor attempt remedy partake element sincere candid desire assistance match equally sincere candid consideration different remedy propose sound measure relief ought result unfortunate general agreement reach various agricultural interest upon propose remedy discussion various proposal committee agriculture measure ought perfect would generally satisfactory due emergency arise heavy tropical storm southern florida authorize secretary agriculture use certain fund anticipation legislation enable farmer region plant crop department present bill ratify loan make purpose federal legislation adopt authorize cooperation government state private owner protection forest land fire preventive measure great importance recommend increase appropriation another preventive measure great economic sanitary importance eradication tuberculosis cattle active work progress county united state secure result cattle treatment average degree infection fall per cent per cent federal government make substantial expenditure purpose serious damage threaten corn crop european corn borer since 1917 spread eastern new england westward indiana cover square mile one formidable pest spread rapidly exceedingly difficult control assume menace national magnitude warrant federal government extend cooperation state local agency attempt prevent spread secure eradication whole question agriculture need careful consideration past year government give subject attention hold consultation relation subject government blame failure perform impossible agricultural region entitle know constant solicitude sympathy many farmer burden debt tax unable carry expend country many million dollar year increase farm production ought put emphasis question farm marketing sound solution permanent nature find problem congress ought hesitate adopt previous message refer national importance proper development water resource great project extension mississippi system protection development low colorado river congress previously comment upon favor necessary legislation expedite project engineering study make connect great lake north atlantic either canal way lawrence river report undoubtedly congress present session unnecessary dwell upon great importance waterway basin commerce development practically whole nation river harbor improvement continue accordance present policy expenditure character compatible economy nature capital investment work proceed basic trunk line work success country content moderate patient permit improvement make great general good rather insist expenditure time secondary project internal waterway make success propose legislation result gross manifestation local jealousy selfishness program carry ultimately take care extension first effort confine main artery inland commerce put great inconvenience expense reason lower water level great lakes international problem competent engineer make report study expect feasible method develop raise level provide relief commerce supply water drainage whenever practical plan present ought speedily adopt increasingly evident federal government must future take leading part impound water conservation incidental power development irrigable land region unused water west find mainly large river work store distribute magnitude cost attractive private enterprise water irreplaceable natural resource precipitation increase storage high reach stream meet grow need use repeatedly flow toward seas practical prudent business policy united state promise follow course old irrigation country recent important irrigation development carry national undertaking gratify therefore condition federal reclamation project become satisfactory gross value crop grown water project work increase 1924 1925 adjustment make last year congress relieve irrigators pay construction cost unprofitable land inspire new hope confidence ability meet payment require construction payment water user last year large history bureau anticipate reclamation fund fully absorb number year completion old project construction project inaugurate past three year however continue investigate study possibility carefully plan development promise project logically governmental concern physical magnitude immense cost interstate international problem involve way may fully prepared meet intelligently need population year come would difficult conceive modern activity contribute necessity convenience life transportation without present agricultural production practically commerce would completely prostrate one large contribute cause present highly satisfactory state economic condition prompt dependable service surpass previous record render railroad power foster spirit cooperation federal state regulatory commission render service efficient effective promote scientific regulation process value railroad property simplify primary valuation complete rapidly possible problem rate reduction would much simplify process railroad consolidation principle already adopt federal law experience show effective method must provide study already make legislation introduce seek promote end would great advantage could take speedily enact railroad system country convenience people wait important decision axiomatic agricultural industrial country get full benefit advantage without merchant marine proceed act congress contemplate establishment trade route ultimately transfer private ownership operation due temporary condition abroad home large demand certain type freight vessel suggestion make new construction feel yet warrant enter field ship might build could sell launch anywhere near would cost expended public treasury recent year make loss operation count depreciation cost whatever capital investment great need merchant marine ship freight merchant altogether indifferent use american ship transportation good send abroad bring home vessel necessarily need repair make believe operation fleet economical efficient could make place single responsible head leave ship board free deal general matter policy regulation department commerce year urgently present necessity legislation order protect radio listener interference broadcast station carry regulatory function branch congress last session pass enactment intend effect regulation two bill yet remain brought agreement final passage due decision court authority department law 1912 break many station operate accommodate within limited number wave length available station course construction many station depart scheme allocation set department whole service important public function drift chaos seem likely remedied destroy great value urgently recommend legislation speedily enact believe desirable set tip independent agency government rather believe advisable entrust important function decide shall exercise privilege radio transmission condition assign wave length determination power board assemble whenever action question becomes necessary right appeal court decision board administration decision board feature regulation promotion radio public interest together scientific research remain department commerce arrangement make expert efficient economical administration independent agency board whose duty initial stage require little attention administrative function confuse semijudicial function necessity must greatly increased personnel expenditure great body people make wage earner several hundred thousand pay roll united state government condition largely fixed legislation recently provide increase compensation method reclassification give advantage liberal retirement system support decline year merit system guaranty intelligence efficiency service demonstration loyalty federal government continue set good example employer industry condition wage earner steadily improve day almost entirely unknown skilled labor well compensate unfortunately multitude worker yet come share general prosperity nation public authority private enterprise solicitous advance welfare class federal government seek secure end protective tariff restrictive immigration require safety device prevention accident grant workman compensation civilian vocational rehabilitation education employment information bureau humanitarian relief provide maternity infancy legislation satisfaction report general condition contentment exist among wage earner country free labor dispute year restrictive immigration adopt part benefit wage earner entirety benefit country ought needless separation family dependents natural source support contrary dictate humanity progress appear make within large area bituminous coal industry toward creation voluntary machinery great assurance give public peaceful adjustment wage difficulty accomplish anthracite industry bituminous industry one primary necessity bear great responsibility nation continuity supply wage agreement unionized section industry expire april 1 next conflict may result may imperil public interest many year often call action executive protection public recommend passage legislation assist executive deal emergency special temporary board conciliation mediation administrative agency purpose distribution coal protection consumer coal profiteer present executive without authority act actually prohibit law make expenditure meet emergency coal famine federal court hold high position administration justice world individual judicial officer sometimes subject criticism court whole maintain exceedingly high standard congress may well consider question supply fair salary confer upon supreme court power law side district court always possess equity side bill also pending provide retirement certain number year service although consecutive favorable consideration faithful servant government last remain provide postwar readjustment pending congress nearly three year bank legislation clarify national bank act reasonably increase power national bank believe within limitation sound banking principle congress future place national bank upon fair equality competitor state bank trust mean may find difference legislation senate house representative may settle along sound line legislation promptly enact would difficult overestimate service federal reserve system already rendered country necessary recall chaotic condition bank organization time federal reserve system put operation old system consist vast number independent bank unit scatter bank reserve never could mobilize time great need spite vast banking resource coordination reserve credit elasticity consequence strain felt even period necessary meet seasonal regularly recur need federal reserve system panacea economic financial ill prevent depression certain industry experience overexpansion production contraction market business furnish adequate credit currency facility succeed war difficult period deflation readjustment follow enables u look future confidence make plan far ahead base belief federal reserve system exercise steady influence credit condition thereby prevent tiny sudden severe reaction period prosperity enjoy order plan may go forward action take present session question renew bank charter thereby insure continuation policy present usefulness federal reserve system favor reduce rather expand government bureau seek regulate control business activity people everyone aware abuse exist exist long limited human imperfection unfortunately human nature change act legislature practically sole remedy many evil lie necessity people look reform abuse find rely false security government assume hold promise look provide reform principle preeminently applicable national government much assume abuse exists business national government provide remedy presumption business local state government national action result encroach upon salutary independence state undertake supersede natural authority fill land bureaus department undertake impossible accomplish brings whole system government disrespect disfavor ought maintain high standard ought punish wrongdoing society privilege absolute duty protect individual accomplish end adopt wrong method permanent success lie local rather national action unless locality rise requirement almost irresistible impulse national government intervene state nation realize action adopt last resort social country require constant effort amelioration race prejudice extension element equal opportunity equal protection law guarantee constitution federal government especially charge obligation behalf colored people nation remarkable progress devotion loyalty duty claim enlighten people require u use power protect crime lynching although violence kind much decrease remain justify neglect make every effort eradicate law education color race government encouragement proceed successfully ought continue support increase need exist properly educate trained medical skill devote service race government hold sacred trusteeship island acquire east west indie people prosperous previous time system good road education general development progress people well govern ever generally content philippine island leonard wood governor general five year administer office tact ability greatly success filipino people proud sensitive race make progress cooperation view result experiment great satisfaction attempt assist race toward look upon wish great respect grant request immediately right yet maintain frank firmness refuse wrong shall measure progress small part acceptance term organic law island govern faithful observance provision need exists clarify duty auditor declare everyone suppose place expenditure supervision comptroller general likely expenditure philippine island need less supervision governor general hamper selection subordinate necessity secure confirmation oftentimes driven expediency use army officer work civilian expert would much well fitted mean provide purpose may require revenue government turn back philippine treasury order possession might stiffer seem neglect recently send carmi thompson island make survey cooperation governor general suggest might do improve condition later may make extended report include recommendation economic development island important ought turn back people politically fit economically independent large area adaptable production rubber one contemplates time future either present independent form government assume responsibility defense economic advantage employment people contribution power defense could carry without rubber believe industry encourage especially adapt filipino people might cultivate individually small acreage could carry extensively american capital way furnish employment good wage oppose promotion policy provide absolute freedom part wage earner think undertake give power large holding land islands opposition people locality development island must solely first object benefit people island early day possession take military control administer entirely civil side government policy national defense one make war insure peace land sea force america domestic foreign implication distinctly peace force arm police power guarantee order execution law home security citizen abroad nation would neglect provide army navy proportionate population extent territory dignity place occupy world consider navy world one exception approach none surpass regular army men equal like number troop entire permanent reserve land sea force train training consist personnel annual appropriation year expend direction exceedingly competent staff say country neglect national defense true cult disparagement exist candid examination make congress various committee always reassure country demonstrate maintain adequate defensive force present year ever support time peace general policy keep effect temporary change may make personnel meet requirement direction attention give submarine cruiser air force particular point may need strengthen whole military power sufficient one weak place whole line still stupendous war debt modern campaign dollar shock troop deplete treasury rear army maintain field country load debt country devoid first line defense economy handmaid preparedness wish able defend full extent power future shall discharge soon possible financial burden last war otherwise would face crisis part capital resource already expend amount kind military equipment preeminently question decision congress give due consideration advice military expert available public revenue nothing laudable cooperation agricultural industrial resource country purpose supply need national defense time peril people employ interest volunteer way often nominal charge dollar year army navy support benefit supply concern supply concern support benefit army navy distribution order need different concern purpose keep equipment organization perfectly justified attempt prevail upon government purchase beyond need ought tolerate eminently fair deal government reasonable profit however public money expend one may profit order serve public purpose policy national defense proceed order may independent oppose engage attempt competitive armament matter much little country may feel constrain provide well afford set example dictate others adopt standard strong enough pursue method wholesome model rest world eminently peaceful mean weak submit difference others adjudication force reason unable defend right best eliminate resort war purpose settle dispute remember peace enjoy sword right country defend rely purpose upon anyone shirk responsibility first requisite government preserve integrity maintain right citizen accordance principle establish lasting foundation honorable permanent peace reason country like country proposes provide army navy support merchant marine yet competition power year beseech nation disarm recently express willingness geneva enter treaty limitation type warship accord ratio adopt washington conference offer still pending shall continue armed menace rather common assurance tranquility peaceloving people world u less would disregard obligation evade responsibility jeopardize national honor country bind honor satisfaction derive always lavish bounty upon veteran year service pension bestow upon grand army reach certain age like provision make survivor spanish war liberal future compensation grant veteran world war case disable dependent government exhibit great solicitude work well administer veteran bureau main unfinished feature hospitalization requirement rapidly meet various veteran body present recommendation careful consideration last session increase annual expenditure pension relief account veteran three war approve proper relief suffer favor extension pension system time still possession government alien property always policy america hold private enemy property confiscate time war principle scrupulously observe property security claim citizens government relinquish without adequate provision reimbursement legislation return property accompany suitable provision liquidation claim citizens treasury adopted government release foreigner security hold american must time provide satisfactory safeguard meet american claim duly authorized public authority country make prohibition law land act constitution congress legislatures practically state adopt legislation enforcement abuse arisen require reform law national government entrust treasury department especial duty regulation enforcement supplementary legislation require meet existing condition carefully speedily enact failure support constitution observe law ought tolerate public opinion especially public place take oath support constitution ought scrupulous observance officer department justice throughout country vigilant enforce law local authority always mainly responsible enforcement law relation intoxicate liquor ought seek evasion attempt shift burden wholly upon federal agency constitution state jointly charge nation provide enforcement prohibition amendment people like amendment like part constitution like entertain sentiment perfect right seek legal method change inhabitant observe part constitution like disregard others doctrine would break protection life property destroy american system order liberty foreign policy government well known one peace base mutual respect arise mutual regard international right arid discharge international obligation purpose promote understanding good people american people altogether lack appreciation tremendous good fortune surround international position traditional enemy embarrass disputed territory possession covet others none covet u border unfortified fear one one fear u world know whole extent influence war favor peace use force favor negotiation arbitration adjudication method adjust international difference look disfavor upon aggressive warfare strong enough one charge u weakness slow anger place sufficiently establish need sensitive trifle resource large enough afford generous time nation among nation recognize responsibility interest stable enlightened civilization protect defend international right government citizen historical detachment generation comparative indifference toward nation public inclined consider altogether seriously report criticize abroad never large foreign trade present time good office never seek necessity assistance cooperation never universally declared time peace know sentiment entertain toward nation sincere friendship good unbounded desire help perfectly willing judged fruit effort adjust international obligation meet response everything consider believe history record remarkable gratify demonstration sanctity civilize nation undertake discharge mutual obligation debt settlement negotiate practically owe u finally adjust two process ratification consider real sacrifice necessary part nation consider circumstance meet agree payment ought hold increased admiration respect true extend generous treatment also true agree repay loan interest special conference chinese custom tariff provide treaty nine power relate chinese custom tariff sign washington february 6 1922 call chinese government meet peking october 26 1925 participate conference fully empower delegate good endeavored cooperate participate power view put effect promise make china washington conference consider reasonable proposal might make chinese government revision treaty subject china tariff aim view american delegation outset conference propose put effect surtax provide washington treaty proceed immediately negotiation treaty among thing make provision abolition tax collect good transit remove tariff restriction exist treaty put effect national tariff law china early april present year central chinese government oust power oppose warring faction become impossible circumstance continue negotiation finally july 3 delegate foreign power include united state issue statement express unanimous earnest desire proceed work conference early possible moment delegate chinese government position resume discussion foreign delegate problem conference prepare resume negotiation thus interrupt whenever government represent chinese people act behalf present fact constant warfare contend chinese faction render impossible bring negotiation successful conclusion matter deep regret throughout conflict maintain position careful neutrality naval vessel asiatic water pursuant treaty right use protection american citizen silas strawn sent china american commissioner cooperate commissioner power establishment commission inquire present practice extraterritorial jurisdiction china view report government several power finding fact regard matter commission commence work january 1926 agree upon joint report sign september 16 1926 commission report receive studied view determine future policy regard question extraterritorial privilege treaty united state china preparatory commission disarmament conference meet geneva may 18 work proceed almost continuously since date would premature attempt form judgment progress make commission comprehensive list question touch upon aspect question limitation armament commission discussion many difference opinion develop however hopeful least measure agreement reach discussion continue american representation commission consistently try helpful kept practical objective commission work namely actual agreement limitation armaments representative continue work direction one encouraging feature commission work thus far agreement principle among naval expert majority power party washington treaty limit naval armament upon method standard comparison limitation naval armament needless say proper time shall prepare proceed along practical line conclusion agreement carry work begin washington conference 1921 many important subject impossible even mention short space annual message find fully discuss departmental report failure include take indicating lack interest disinclination state inadequately much good do document embark ambitious build program city washington memorial bridge way hold use beauty new building soon contemplate program represent best exists art science architecture structure must consider permanent nature ought go aspiration nation ideal express form beauty country wish compete others let support armament make beautiful capital city let express soul america whenever american seat government however travel cultured may ought find city stately proportion symmetrically lay adorn best architecture would arouse imagination stir patriotic pride come year washington art center country art center world around center best science learn letter art result justify creation national resource favor america must country without ideal useless visionary valuable practical nation dwell constantly mountain top replenish sustained ceaseless toil less inspiring valley face ought always turn upward vision ought always fix high need ideal follow daily life translate term home expect relieve toil expect divest degrade condition work honorable entitle honorable recompense must strive mightily striven defect political social system general reward success relieve land burden come war release individual fruit industry increase earn capacity decrease hour labor enlarge circle vision good road good transportation lace opportunity education science art leave free receive inspiration religion ideal deliver servitude body exalt service soul emancipation thing material broaden dominion thing spiritual