Mr. President, Mr. Speaker, Members of the Congress of the United States: It looks like a good many of you have moved over to the left since I was here last! I come before you today to report on the State of the Union and, in the words of the Constitution, to recommend such measures as I judge necessary and expedient. I come also to welcome you as you take up your duties and to discuss with you the manner in which you and I should fulfill our obligations to the American people during the next 2 years. The power to mold the future of this Nation lies in our hands--yours and mine, and they are joined together by the Constitution. If in this year, and in the next, we can find the right course to take as each issue arises, and if, in spite of all difficulties, we have the courage and the resolution to take that course, then we shall achieve a state of well-being for our people without precedent in history. And if we continue to work with the other nations of the world earnestly, patiently, and wisely, we can--granting a will for peace on the part of our neighbors-make a lasting peace for the world. But, if we are to realize these ends, the Congress and the President, during the next 2 years, must work together. It is not unusual in our history that the majority of the Congress represents a party in opposition to the President's party. I am the twentieth President of the United States who, at some time during his term of office, has found his own party to be in the minority in one or both Houses of Congress. The first one was George Washington. Wilson was number eighteen, and Hoover was number nineteen. I realize that on some matters the Congress and the President may have honest differences of opinion. Partisan differences, however, did not cause material disagreements as to the conduct of the war. Nor, in the conduct of our international relations, during and since the war, have such partisan differences been material. On some domestic issues we may, and probably shall, disagree. That in itself is not to be feared. It is inherent in our form of Government. But there are ways of disagreeing; men who differ can still work together sincerely for the common good. We shall be risking the Nation's safety and destroying our opportunities for progress if we do not settle any disagreements in this spirit, without thought of partisan advantage. THE GENERAL DOMESTIC ECONOMY As the year 1947 begins, the state of our national economy presents great opportunities for all. We have virtually full employment. Our national production of goods and services is 50 percent higher than in any year prior to the war emergency. The national income in 1946 was higher than in any peacetime year. Our food production is greater than it has ever been. During the last 5 years our productive facilities have been expanded in almost every field. The American standard of living is higher now than ever before, and when the housing shortage can be overcome it will be even higher. During the past few months we have removed at a rapid rate the emergency controls that the Federal Government had to exercise during the war. The remaining controls will be retained only as long as they are needed to protect the public. Private enterprise must be given the greatest possible freedom to continue the expansion of economy. In my proclamation of December 31, 1946 I announced the termination of hostilities. This automatically ended certain temporary legislation and certain executive powers. Two groups of temporary laws still remain: the first are those which by Congressional mandate are to last during the "emergency"; the second are those which are to continue until the "termination of the war," I shall submit to the Congress recommendations for the repeal of certain of the statutes which by their terms continue for the duration of the "emergency." I shall at the same time recommend that others within this classification be extended until the state of war has been ended by treaty or by legislative action. As to those statutes which continue until the state of war has been terminated, I urge that the Congress promptly consider each statute individually, and repeal such emergency legislation where it is advisable. Now that nearly all wartime controls have been removed, the operation of our industrial system depends to a greater extent on the decisions of businessmen, farmers, and workers. These decisions must be wisely made with genuine concern for public welfare. The welfare of businessmen, farmers, and workers depends upon the economic well-being of those who buy their products. An important present source of danger to our economy is the possibility that prices might be raised to such an extent that the consuming public could not purchase the tremendous volume of goods and services which will be produced during 1947. We all know that recent price increases have denied to many of our workers much of the value of recent wage increases. Farmers have found that a large part of their increased income has been absorbed by increased prices. While some of our people have received raises in income which exceed price increases, the great majority have not. Those persons who live on modest fixed incomes--retired persons living on pensions, for example--and workers whose incomes are relatively inflexible, such as teachers and other civil servants--have suffered hardship. In the effort to bring about a sound and equitable price structure, each group of our population has its own responsibilities. It is up to industry not only to hold the line on existing prices, but to make reductions whenever profits justify such action. It is up to labor to refrain from pressing for unjustified wage increases that will force increases in the price level. And it is up to Government to do everything in its power to encourage high-volume Production, for that is what makes possible good wages, low prices, and reasonable profits. In a few days there will be submitted to the Congress the Economic Report of the President, and also the Budget Message. Those messages will contain many recommendations. Today I shall outline five major economic policies which I believe the Government should pursue during 1947. These policies are designed to meet our immediate needs and, at the same time, to provide for the long-range welfare of our free enterprise system: First, the promotion of greater harmony between labor and management. Second, restriction of monopoly and unfair business practices; assistance to small business; and the promotion of the free competitive system of private enterprise. Third, continuation of an aggressive program of home construction. Fourth, the balancing of the budget in the next fiscal year and the achieving of a substantial surplus to be applied to the reduction of the public debt. Fifth, protection of a fair level of return to farmers in post-war agriculture. LABOR AND MANAGEMENT The year just past--like the year after the first World War--was marred by labor management strife. Despite this outbreak of economic warfare in 1946, we are today producing goods and services in record volume. Nevertheless, it is essential to improve the methods for reaching agreement between labor and management and to reduce the number of strikes and lockouts. We must not, however, adopt punitive legislation. We must not in order to punish a few labor leaders, pass vindictive laws which will restrict the proper rights of the rank and file of labor. We must not, under the stress of emotion, endanger our American freedoms by taking ill-considered action which will lead to results not anticipated or desired. We must remember, in reviewing the record of disputes in 1946, that management shares with labor the responsibility for failure to reach agreements which would have averted strikes. For that reason, we must realize that industrial peace cannot be achieved merely by laws directed against labor unions. During the last decade and a half, we have established a national labor policy in this country based upon free collective bargaining as the process for determining wages and working conditions. That is still the national policy. And it should continue to be the national policy! But as yet, not all of us have learned what it means to bargain freely and fairly. Nor have all of us learned to carry the mutual responsibilities that accompany the right to bargain. There have been abuses and harmful practices which limit the effectiveness of our system of collective bargaining. Furthermore, we have lacked sufficient governmental machinery to aid labor and management in resolving their differences. Certain labor-management problems need attention at once and certain others, by reason of their complexity, need exhaustive investigation and study. We should enact legislation to correct certain abuses and to provide additional governmental assistance in bargaining. But we should also concern ourselves with the basic causes of labor-management difficulties. In the light of these considerations, I propose to you and urge your cooperation in effecting the following four-point program to reduce industrial strife: Point number one is the early enactment of legislation to prevent certain unjustifiable practices. First, under this point, are jurisdictional strikes. In such strikes the public and the employer are innocent bystanders who are injured by a collision between rival unions. This type of dispute hurts production, industry, and the public--and labor itself. I consider jurisdictional strikes indefensible. The National Labor Relations Act provides procedures for determining which union represents employees of a particular employer. In some jurisdictional disputes, however, minority unions strike to compel employers to deal with them despite a legal duty to bargain with the majority union. Strikes to compel an employer to violate the law are inexcusable. Legislation to prevent such strikes is clearly desirable. Another form of inter-union disagreement is the jurisdictional strike involving the question of which labor union is entitled to perform a particular task. When rival unions are unable to settle such disputes themselves, provision must be made for peaceful and binding determination of the issues. A second unjustifiable practice is the secondary boycott, when used to further jurisdictional disputes or to compel employers to violate the National Labor Relations Act. Not all secondary boycotts are unjustified. We must judge them on the basis of their objectives. For example, boycotts intended to protect wage rates and working conditions should be distinguished from those in furtherance of jurisdictional disputes. The structure of industry sometimes requires unions, as a matter of self-preservation, to extend the conflict beyond a particular employer. There should be no blanket prohibition against boycotts. The appropriate goal is legislation which prohibits secondary boycotts in pursuance of unjustifiable objectives, but does not impair the union's right to preserve its own existence and the gains made in genuine collective bargaining. A third practice that should be corrected is the use of economic force, by either labor or management, to decide issues arising out of the interpretation of existing contracts. Collective bargaining agreements, like other contracts, should be faithfully adhered to by both parties. In the most enlightened union-management relationships, disputes over the interpretation of contract terms are settled peaceably by negotiation or arbitration. Legislation should be enacted to provide machinery whereby unsettled disputes concerning the interpretation of an existing agreement may be referred by either party to final and binding arbitration. Point number two is the extension of facilities within the Department of Labor for assisting collective bargaining. One of our difficulties in avoiding labor strife arises from a lack of order in the collective bargaining process. The parties often do not have a dear understanding of their responsibility for settling disputes through their own negotiations. We constantly see instances where labor or management resorts to economic force without exhausting the possibilities for agreement through the bargaining process. Neither the parties nor the Government have a definite yardstick for determining when and how Government assistance should be invoked. There is need for integrated governmental machinery to provide the successive steps of mediation, voluntary arbitration, and--ultimately in appropriate cases--ascertainment of the facts of the dispute and the reporting of the facts to the public. Such machinery would facilitate and expedite the settlement of disputes. Point number three is the broadening of our program of social legislation to alleviate the causes of workers' insecurity. On June 11, 1946, in my message vetoing the Case Bill, I made a comprehensive statement of my views concerning labor-management relations. I said then, and I repeat now, that the solution of labor-management difficulties is to be found not only in legislation dealing directly with labor relations, but also in a program designed to remove the causes of insecurity felt by many workers in our industrial society. In this connection, for example, the Congress should consider the extension and broadening of our social security system, better housing, a comprehensive national health program, and provision for a fair minimum wage. Point number four is the appointment of a Temporary Joint Commission to inquire into the entire field of labor-management relations. I recommend that the Congress provide for the appointment of a Temporary Joint Commission to undertake this broad study. The President, the Congress, and management and labor have a continuing responsibility to cooperate in seeking and finding the solution of these problems. I therefore recommend that the Commission be composed as follows: twelve to be chosen by the Congress from members of both parties in the House and the Senate, and eight representing the public, management and labor, to be appointed by the President. The Commission should be charged with investigating and making recommendations upon certain major subjects, among others: First, the special and unique problem of nationwide strikes in vital industries affecting the public interest. In particular, the Commission should examine into the question of how to settle or prevent such strikes without endangering our general democratic freedoms. Upon a proper solution of this problem may depend the whole industrial future of the United States. The paralyzing effects of a nationwide strike in such industries as transportation, coal, oil, steel, or communications can result in national disaster. We have been able to avoid such disaster, in recent years, only by the use of extraordinary war powers. All those powers will soon be gone. In their place there must be created an adequate system and effective machinery in these vital fields. This problem will require careful study and a bold approach, but an approach consistent with the preservation of the rights of our people. The need is pressing. The Commission should give this its earliest attention. Second, the best methods and procedures for carrying out the collective bargaining process. This should include the responsibilities of labor and management to negotiate freely and fairly with each other, and to refrain from strikes or lockouts until all possibilities of negotiation have been exhausted. Third, the underlying causes of labor management disputes. Some of the subjects presented here for investigation involve long-range study. Others can be considered immediately by the Commission and its recommendations can be submitted to the Congress in the near future. I recommend that this Commission make its first report, including specific legislative recommendations, not later than March 15, 1947. RESTRICTION Of MONOPOLY AND PROMOTION OF PRIVATE ENTERPRISE The second major policy I desire to lay before you has to do with the growing concentration of economic power and the threat to free competitive private enterprise. In 1941 the Temporary National Economic Committee completed a comprehensive investigation into the workings of the national economy. The Committee's study showed that, despite a half century of anti-trust law enforcement, one of the gravest threats to our welfare lay in the increasing concentration of power in the hands of a small number of giant organizations. During the war, this long-standing tendency toward economic concentration was accelerated. As a consequence, we now find that to a greater extent than ever before, whole industries are dominated by one or a few large organizations which can restrict production in the interest of higher profits and thus reduce employment and purchasing power. In an effort to assure full opportunity and free competition to business we will vigorously enforce the anti-trust laws. There is much the Congress can do to cooperate and assist in this program. To strengthen and enforce the laws that regulate business practices is not enough. Enforcement must be supplemented by positive measures of aid to new enterprises. Government assistance, research programs, and credit powers should be designed and used to promote the growth of new firms and new industries. Assistance to small business is particularly important at this time when thousands of veterans who are potential business and industrial leaders are beginning their careers. We should also give special attention to the decentralization of industry and the development of areas that are now under-industrialized. HOUSING The third major policy is also of great importance to the national economy: an aggressive program to encourage housing construction. The first federal program to relieve the veterans' housing shortage was announced in February 1946. In 1946 one million family housing units have been put under construction and more than 665,000 units have already been completed. The rate of expansion in construction has broken all records. In the coming year the number of dwelling units built will approach, if not surpass, the top construction year of 1926. The primary responsibility to deliver housing at reasonable prices that veterans can afford rests with private industry and with labor. The Government will continue to expedite the flow of key building materials, to limit nonresidential construction, and to give financial support where it will do the most good. Measures to stimulate rental housing and new types of housing construction will receive special emphasis. To reach our long-range goal of adequate housing for all our people, comprehensive housing legislation is urgently required, similar to the non-partisan bill passed by the Senate last year. At a minimum, such legislation should open the way for rebuilding the blighted areas of our cities and should establish positive incentives for the investment of billions of dollars of private capital in large-scale rental housing projects. It should provide for improvement of housing in rural areas and for the construction, over a 4-year period, of half a million units of public low-rental housing. It should authorize a single peacetime federal housing agency to assure efficient use of our resources on the vast housing front. FISCAL AFFAIRS The fourth major policy has to do with the balancing of the budget. In a prosperous period such as the present one, the budget of the Federal Government should be balanced. Prudent management of public finance requires that we begin the process of reducing the public debt. The budget which I shall submit to you this week has a small margin of surplus. In the Budget Message I am making recommendations which, if accepted, will result in a substantially larger surplus which should be applied to debt retirement. One of these recommendations is that the Congress take early action to continue throughout the next fiscal year the war excise tax rates which, under the present law, will expire on June 30, 1947. Expenditures relating to the war are still high. Considerable sums are required to alleviate world famine and suffering. Aid to veterans will continue at peak level. The world situation is such that large military expenditures are required. Interest on the public debt and certain other costs are irreducible. For these reasons I have had to practice stringent economy in preparing the budget; and I hope that the Congress will cooperate in this program of economy. AGRICULTURE The fifth major policy has to do with the welfare of our farm population. Production of food reached record heights in 1946. Much of our tremendous grain crop can readily be sold abroad and thus will become no threat to our domestic markets. But in the next few years American agriculture can face the same dangers it did after World War I. In the early twenties the Nation failed to maintain outlets for the new productive capacity of our agricultural plant. It failed to provide means to protect the farmer while he adjusted his acreage to peacetime demands. The result we all remember too well. Farm production stayed up while demand and prices fell, in contrast with industry where prices stayed up and output declined, farm surpluses piled up, and disaster followed. We must make sure of meeting the problems which we failed to meet after the first World War. Present laws give considerable stability to farm prices for 1947 and 1948, and these 2 years must be utilized to maintain and develop markets for our great productive power. The purpose of these laws was to permit an orderly transition from war to peace. The Government plan of support prices was not designed to absorb, at great cost, the unlimited surpluses of a highly productive agriculture. We must not wait until the guarantees expire to set the stage for permanent farm welfare The farmer is entitled to a fair income. Ways can be found to utilize his new skills and better practices, to expand his markets at home and abroad, and to carry out the objectives of a balanced pattern of peacetime production without either undue sacrifice by farm people or undue expense to the Government. HEALTH AND GENERAL WELFARE Of all our national resources, none is of more basic value than the health of our people. Over a year ago I presented to the Congress my views on a national health program. The Congress acted on several of the recommendations in this program-mental health, the health of mothers and children, and hospital construction. I urge this Congress to complete the work begun last year and to enact the most important recommendation of the program--to provide adequate medical care to all who need it, not as charity but on the basis of payments made by the beneficiaries of the program. One administrative change would help greatly to further our national program in the fields of health, education, and welfare. I again recommend the establishment of a well-integrated Department of Welfare. VETERANS Fourteen million World War II servicemen have returned to civil life. The great majority have found their places as citizens of their communities and their Nation. It is a tribute to the fiber of our servicemen and to the flexibility of our economy that these adjustments have been made so rapidly and so successfully. More than two million of these veterans are attending schools or acquiring job skills through the financial assistance of the Federal Government. Thousands of sick and wounded veterans are daily receiving the best of medical and hospital care. Half a million have obtained loans, with Government guarantees, to purchase homes or farms or to embark upon new businesses. Compensation is being paid in almost two million cases for disabilities or death. More than three million are continuing to mainlain their low-cost National Service Life Insurance policies. Almost seven million veterans have been aided by unemployment and self-employment allowances. Exclusive of mustering-out payments and terminal leave pay, the program for veterans of all wars is costing over seven billion dollars a year--one-fifth of our total federal budget. This is the most far-reaching and complete veterans program ever conceived by any nation. Except for minor adjustments, I believe that our program of benefits for veterans is now complete. In the long run, the success of the program will not be measured by the number of veterans receiving financial aid or by the number of dollars we spend. History will judge us not by the money we spend, but by the further contribution we enable our veterans to make to their country. In considering any additional legislation, that must be our criterion. CIVIL RIGHTS We have recently witnessed in this country numerous attacks upon the constitutional rights of individual citizens as a result of racial and religious bigotry. Substantial segments of our people have been prevented from exercising fully their right to participate in the election of public officials, both locally and nationally. Freedom to engage in lawful callings has been denied. The will to fight these crimes should be in the hearts of every one of us. For the Federal Government that fight is now being carried on by the Department of Justice to the full extent of the powers that have been conferred upon it. While the Constitution withholds from the Federal Government the major task of preserving peace in the several States, I am not convinced that the present legislation reached the limit of federal power to protect the civil rights of its citizens. I have, therefore, by Executive Order,  established the President's Committee on Civil Rights to study and report on the whole problem of federally-secured civil rights, with a view to making recommendations to the Congress. 1 Executive Order 9808 (3 CFR, 1943-1948 Comp., p. 590.) NATURAL RESOURCES In our responsibility to promote the general welfare of the people, we have always to consider the natural resources of our country. They are the foundation of our life. In the development of the great river systems of America there is the major opportunity of our generation to contribute to the increase of the national wealth. This program is already well along; it should be pushed with full vigor. I must advise the Congress that we are rapidly becoming a "have not" Nation as to many of our minerals. The economic progress and the security of our country depend upon an expanding return of mineral discovery and upon improved methods of recovery. The Federal Government must do its part to meet this need. FOREIGN AFFAIRS Progress in reaching our domestic goals is closely related to our conduct of foreign affairs. All that I have said about maintaining a sound and prosperous economy and improving the welfare of our people has greater meaning because of the world leadership of the United States. What we do, or fail to do, at home affects not only ourselves but millions throughout the world. If we are to fulfill our responsibilities to ourselves and to other peoples, we must make sure that the United States is sound economically, socially, and politically. Only then will we be able to help bring about the elements of peace in other countries--political stability, economic advancement, and social progress. Peace treaties for Italy, Bulgaria, Rumania, and Hungary have finally been prepared. Following the signing of these treaties next month in Paris, they will be submitted to the Senate for ratification. This Government does not regard the treaties as completely satisfactory. Whatever their defects, however, I am convinced that they are as good as we can hope to obtain by agreement among the principal wartime Allies. Further dispute and delay would gravely jeopardize political stability in the countries concerned for many years. During the long months of debate on these treaties, we have made it clear to all nations that the United States will not consent to settlements at the expense of principles we regard as vital to a just and enduring peace. We have made it equally dear that we will not retreat to isolationism. Our policies will be the same during the forthcoming negotiations in Moscow on the German and Austrian treaties, and during the future conferences on the Japanese treaty. The delay in arriving at the first peace settlements is due partly to the difficulty of reaching agreement with the Soviet Union on the terms of settlement. Whatever differences there may have been between us and the Soviet Union, however, should not be allowed to obscure the fact that the basic interests of both nations lie in the early making of a peace under which the peoples of all countries may return, as free men and women, to the essential tasks of production and reconstruction. The major concern of each of us should be the promotion of collective security, not the advancement of individual security. Our policy toward the Soviet Union is guided by the same principles which determine our policies toward all nations. We seek only to uphold the principles of international justice which have been embodied in the Charter of the United Nations. We must now get on with the peace settlements. The occupying powers should recognize the independence of Austria and withdraw their troops. The Germans and the Japanese cannot be left in doubt and fear as to their future; they must know their national boundaries, their resources, and what reparations they must pay. Without trying to manage their internal affairs, we can insure that these countries do not re-arm. INTERNATIONAL RELIEF AND DISPLACED PERSONS The United States can be proud of its part in caring for the peoples reduced to want by the ravages of war, and in aiding nations to restore their national economies. We have shipped more supplies to the hungry peoples of the world since the end of the war than all other countries combined! However, insofar as admitting displaced persons is concerned, I do not feel that the United States has done its part. Only about 5,000 of them have entered this country since May, 1946. The fact is that the executive agencies are now doing all that is reasonably possible under the limitation of the existing law and established quotas. Congressional assistance in the form of new legislation is needed. I urge the Congress to turn its attention to this world problem, in an effort to find ways whereby we can fulfill our responsibilities to these thousands of homeless and suffering refugees of all faiths. INTERNATIONAL TRADE World economic cooperation is essential to world political cooperation. We have made a good start on economic cooperation through the International Bank, the International Monetary fund, and the Export-Import Bank. We must now take other steps for the reconstruction of world trade and we should continue to strive for an international trade system as free from obstructions as possible. ATOMIC ENERGY The United States has taken the lead in the endeavor to put atomic energy under effective international control. We seek no monopoly for ourselves or for any group of nations. We ask only that there be safeguards sufficient to insure that no nation will be able to use this power for military purposes. So long as all governments are not agreed on means of international control of atomic energy, the shadow of fear will obscure the bright prospects for the peaceful use of this enormous power. In accordance with the Atomic Energy Act of 1946, the Commission established under that law is assuming full jurisdiction over domestic atomic energy enterprise. The program of the Commission will, of course, be worked out in close collaboration with the military services in conformity with the wish of the Congress, but it is my fervent hope that the military significance of atomic energy will steadily decline. We look to the Commission to foster the development of atomic energy for industrial use and scientific and medical research. In the vigorous and effective development of peaceful uses of atomic energy rests our hope that this new force may ultimately be turned into a blessing for all nations. MILITARY POLICY In 1946 the Army and Navy completed the demobilization of their wartime forces. They are now maintaining the forces which we need for national defense and to fulfill our international obligations. We live in a world in which strength on the part of peace-loving nations is still the greatest deterrent to aggression. World stability can be destroyed when nations with great responsibilities neglect to maintain the means of discharging those responsibilities. This is an age when unforeseen attack could come with unprecedented speed. We must be strong enough to defeat, and thus forestall, any such attack. In our steady Progress toward a more rational world order, the need for large armed forces is progressively declining; but the stabilizing force of American military strength must not be weakened until our hopes are fully realized. When a system of collective security under the United Nations has been established, we shall be willing to lead in collective disarmament, but, until such a system becomes a reality, we must not again allow ourselves to become weak and invite attack. For those reasons, we need well-equipped, well-trained armed forces and we must be able to mobilize rapidly our resources in men and material for our own defense, should the need arise. The Army will be reduced to 1,070,000 officers and men by July 1, 1947. Half of the Army will be used for occupation duties abroad and most of the remainder will be employed at home in the support of these overseas forces. The Navy is supporting the occupation troops in Europe and in the Far East. Its fundamental mission--to support our national interests wherever required--is unchanged. The Navy, including the Marine Corps, will average 571,000 officers and men during the fiscal year 1948. We are encountering serious difficulties in maintaining our forces at even these reduced levels. Occupation troops are barely sufficient to carry out the duties which our foreign policy requires. Our forces at home are at a point where further reduction is impracticable. We should like an Army and a Navy composed entirely of long-term volunteers, but in spite of liberal inducements the basic needs of the Army are not now being met by voluntary enlistments. The War Department has advised me that it is unable to make an accurate forecast at the present time as to whether it will be possible to maintain the strength of the Army by relying exclusively on volunteers. The situation will be much clearer in a few weeks, when the results of the campaign for volunteers are known. The War Department will make its recommendations as to the need for the extension of Selective Service in sufficient time to enable the Congress to take action prior to the expiration of the present law on March 31st. The responsibility for maintaining our armed forces at the strength necessary for our national safety rests with the Congress. The development of a trained citizen reserve is also vital to our national security. This can best be accomplished through universal training. I have appointed an Advisory Commission on Universal Training to study the various plans for a training program, and I expect that the recommendations of the Commission will be of benefit to the Congress and to me in reaching decisions on this problem. The cost of the military establishment is substantial. There is one certain way by which we can cut costs and at the same time enhance our national security. That is by the establishment of a single Department of National Defense. I shall communicate with the Congress in the near future with reference to the establishment of a single Department of National Defense. National security does not consist only of an army, a navy, and an air force. It rests on a much broader basis. It depends on a sound economy of prices and wages, on prosperous agriculture, on satisfied and productive workers, on a competitive private enterprise free from monopolistic repression, on continued industrial harmony and production, on civil liberties and human freedoms-on all the forces which create in our men and women a strong moral fiber and spiritual stamina. But we have a higher duty and a greater responsibility than the attainment of our own national security. Our goal is collective security for all mankind. If we can work in a spirit of understanding and mutual respect, we can fulfill this solemn obligation which rests upon us. The spirit of the American people can set the course of world history. If we maintain and strengthen our cherished ideals, and if we share our great bounty with war-stricken people over the world, then the faith of our citizens in freedom and democracy will be spread over the whole earth and free men everywhere will share our devotion to those ideals. Let us have the will and the patience to this job together. May the Lord strengthen us in our faith. May He give us wisdom to lead the peoples of the world in His ways of peace.
Mr. President, Mr. Speaker, Members of the Congress of the United States: It looks like a good many of you have moved over to the left since I was here last! I come before you today to report on the State of the Union and, in the words of the Constitution, to recommend such measures as I judge necessary and expedient. I come also to welcome you as you take up your duties and to discuss with you the manner in which you and I should fulfill our obligations to the American people during the next 2 years. The power to mold the future of this Nation lies in our hands--yours and mine, and they are joined together by the Constitution. If in this year, and in the next, we can find the right course to take as each issue arises, and if, in spite of all difficulties, we have the courage and the resolution to take that course, then we shall achieve a state of well-being for our people without precedent in history. And if we continue to work with the other nations of the world earnestly, patiently, and wisely, we can--granting a will for peace on the part of our neighbors-make a lasting peace for the world. But, if we are to realize these ends, the Congress and the President, during the next 2 years, must work together. It is not unusual in our history that the majority of the Congress represents a party in opposition to the President's party. I am the twentieth President of the United States who, at some time during his term of office, has found his own party to be in the minority in one or both Houses of Congress. The first one was George Washington. Wilson was number eighteen, and Hoover was number nineteen. I realize that on some matters the Congress and the President may have honest differences of opinion. Partisan differences, however, did not because material disagreements as to the conduct of the war. Nor, in the conduct of our international relations, during and since the war, have such partisan differences been material. On some domestic issues we may, and probably shall, disagree. That in itself is not to be feared. It is inherent in our form of Government. But there are ways of disagreeing; men who differ can still work together sincerely for the common good. We shall be risking the Nation's safety and destroying our opportunities for progress if we do not settle any disagreements in this spirit, without thought of partisan advantage. THE GENERAL DOMESTIC ECONOMY As the year 1947 begins, the state of our national economy presents great opportunities for all. We have virtually full employment. Our national production of goods and services is 50 percent higher than in any year prior to the war emergency. The national income in 1946 was higher than in any peacetime year. Our food production is greater than it has ever been. During the last 5 years our productive facilities have been expanded in almost every field. The American standard of living is higher now than ever before, and when the housing shortage can be overcome it will be even higher. During the past few months we have removed at a rapid rate the emergency controls that the Federal Government had to exercise during the war. The remaining controls will be retained only as long as they are needed to protect the public. Private enterprise must be given the greatest possible freedom to continue the expansion of economy. In my proclamation of December 31, 1946 I announced the termination of hostilities. This automatically ended certain temporary legislation and certain executive powers. Two groups of temporary laws still remain: the first are those which by Congressional mandate are to last during the "emergency"; the second are those which are to continue until the "termination of the war," I shall submit to the Congress recommendations for the repeal of certain of the statutes which by their terms continue for the duration of the "emergency." I shall at the same time recommend that others within this classification be extended until the state of war has been ended by treaty or by legislative action. As to those statutes which continue until the state of war has been terminated, I urge that the Congress promptly consider each statute individually, and repeal such emergency legislation where it is advisable. Now that nearly all wartime controls have been removed, the operation of our industrial system depends to a greater extent on the decisions of businessmen, farmers, and workers. These decisions must be wisely made with genuine concern for public welfare. The welfare of businessmen, farmers, and workers depends upon the economic well-being of those who buy their products. An important present source of danger to our economy is the possibility that prices might be raised to such an extent that the consuming public could not purchase the tremendous volume of goods and services which will be produced during 1947. We all know that recent price increases have denied to many of our workers much of the value of recent wage increases. Farmers have found that a large part of their increased income has been absorbed by increased prices. While some of our people have received raises in income which exceed price increases, the great majority have not. Those persons who live on modest fixed incomes--retired persons living on pensions, for example--and workers whose incomes are relatively inflexible, such as teachers and other civil servants--have suffered hardship. In the effort to bring about a sound and equitable price structure, each group of our population has its own responsibilities. It is up to industry not only to hold the line on existing prices, but to make reductions whenever profits justify such action. It is up to labor to refrain from pressing for unjustified wage increases that will force increases in the price level. And it is up to Government to do everything in its power to encourage high-volume Production, for that is what makes possible good wages, low prices, and reasonable profits. In a few days there will be submitted to the Congress the Economic Report of the President, and also the Budget Message. Those messages will contain many recommendations. Today I shall outline five major economic policies which I believe the Government should pursue during 1947. These policies are designed to meet our immediate needs and, at the same time, to provide for the long-range welfare of our free enterprise system: First, the promotion of greater harmony between labor and management. Second, restriction of monopoly and unfair business practices; assistance to small business; and the promotion of the free competitive system of private enterprise. Third, continuation of an aggressive program of home construction. Fourth, the balancing of the budget in the next fiscal year and the achieving of a substantial surplus to be applied to the reduction of the public debt. Fifth, protection of a fair level of return to farmers in post-war agriculture. LABOR AND MANAGEMENT The year just past--like the year after the first World War--was marred by labor management strife. Despite this outbreak of economic warfare in 1946, we are today producing goods and services in record volume. Nevertheless, it is essential to improve the methods for reaching agreement between labor and management and to reduce the number of strikes and lockouts. We must not, however, adopt punitive legislation. We must not in order to punish a few labor leaders, pass vindictive laws which will restrict the proper rights of the rank and file of labor. We must not, under the stress of emotion, endanger our American freedoms by taking ill-considered action which will lead to results not anticipated or desired. We must remember, in reviewing the record of disputes in 1946, that management shares with labor the responsibility for failure to reach agreements which would have averted strikes. For that reason, we must realize that industrial peace cannot be achieved merely by laws directed against labor unions. During the last decade and a half, we have established a national labor policy in this country based upon free collective bargaining as the process for determining wages and working conditions. That is still the national policy. And it should continue to be the national policy! But as yet, not all of us have learned what it means to bargain freely and fairly. Nor have all of us learned to carry the mutual responsibilities that accompany the right to bargain. There have been abuses and harmful practices which limit the effectiveness of our system of collective bargaining. Furthermore, we have lacked sufficient governmental machinery to aid labor and management in resolving their differences. Certain labor-management problems need attention at once and certain others, by reason of their complexity, need exhaustive investigation and study. We should enact legislation to correct certain abuses and to provide additional governmental assistance in bargaining. But we should also concern ourselves with the basic causes of labor-management difficulties. In the light of these considerations, I propose to you and urge your cooperation in effecting the following four-point program to reduce industrial strife: Point number one is the early enactment of legislation to prevent certain unjustifiable practices. First, under this point, are jurisdictional strikes. In such strikes the public and the employer are innocent bystanders who are injured by a collision between rival unions. This type of dispute hurts production, industry, and the public--and labor itself. I consider jurisdictional strikes indefensible. The National Labor Relations Act provides procedures for determining which union represents employees of a particular employer. In some jurisdictional disputes, however, minority unions strike to compel employers to deal with them despite a legal duty to bargain with the majority union. Strikes to compel an employer to violate the law are inexcusable. Legislation to prevent such strikes is clearly desirable. Another form of inter-union disagreement is the jurisdictional strike involving the question of which labor union is entitled to perform a particular task. When rival unions are unable to settle such disputes themselves, provision must be made for peaceful and binding determination of the issues. A second unjustifiable practice is the secondary boycott, when used to further jurisdictional disputes or to compel employers to violate the National Labor Relations Act. Not all secondary boycotts are unjustified. We must judge them on the basis of their objectives. For example, boycotts intended to protect wage rates and working conditions should be distinguished from those in furtherance of jurisdictional disputes. The structure of industry sometimes requires unions, as a matter of self-preservation, to extend the conflict beyond a particular employer. There should be no blanket prohibition against boycotts. The appropriate goal is legislation which prohibits secondary boycotts in pursuance of unjustifiable objectives, but does not impair the union's right to preserve its own existence and the gains made in genuine collective bargaining. A third practice that should be corrected is the use of economic force, by either labor or management, to decide issues arising out of the interpretation of existing contracts. Collective bargaining agreements, like other contracts, should be faithfully adhered to by both parties. In the most enlightened union-management relationships, disputes over the interpretation of contract terms are settled peaceably by negotiation or arbitration. Legislation should be enacted to provide machinery whereby unsettled disputes concerning the interpretation of an existing agreement may be referred by either party to final and binding arbitration. Point number two is the extension of facilities within the Department of Labor for assisting collective bargaining. One of our difficulties in avoiding labor strife arises from a lack of order in the collective bargaining process. The parties often do not have a dear understanding of their responsibility for settling disputes through their own negotiations. We constantly see instances where labor or management resorts to economic force without exhausting the possibilities for agreement through the bargaining process. Neither the parties nor the Government have a definite yardstick for determining when and how Government assistance should be invoked. There is need for integrated governmental machinery to provide the successive steps of mediation, voluntary arbitration, and--ultimately in appropriate cases--ascertainment of the facts of the dispute and the reporting of the facts to the public. Such machinery would facilitate and expedite the settlement of disputes. Point number three is the broadening of our program of social legislation to alleviate the causes of workers' insecurity. On June 11, 1946, in my message vetoing the Case Bill, I made a comprehensive statement of my views concerning labor-management relations. I said then, and I repeat now, that the solution of labor-management difficulties is to be found not only in legislation dealing directly with labor relations, but also in a program designed to remove the causes of insecurity felt by many workers in our industrial society. In this connection, for example, the Congress should consider the extension and broadening of our social security system, better housing, a comprehensive national health program, and provision for a fair minimum wage. Point number four is the appointment of a Temporary Joint Commission to inquire into the entire field of labor-management relations. I recommend that the Congress provide for the appointment of a Temporary Joint Commission to undertake this broad study. The President, the Congress, and management and labor have a continuing responsibility to cooperate in seeking and finding the solution of these problems. I therefore recommend that the Commission be composed as follows: twelve to be chosen by the Congress from members of both parties in the House and the Senate, and eight representing the public, management and labor, to be appointed by the President. The Commission should be charged with investigating and making recommendations upon certain major subjects, among others: First, the special and unique problem of nationwide strikes in vital industries affecting the public interest. In particular, the Commission should examine into the question of how to settle or prevent such strikes without endangering our general democratic freedoms. Upon a proper solution of this problem may depend the whole industrial future of the United States. The paralyzing effects of a nationwide strike in such industries as transportation, coal, oil, steel, or communications can result in national disaster. We have been able to avoid such disaster, in recent years, only by the use of extraordinary war powers. All those powers will soon be gone. In their place there must be created an adequate system and effective machinery in these vital fields. This problem will require careful study and a bold approach, but an approach consistent with the preservation of the rights of our people. The need is pressing. The Commission should give this its earliest attention. Second, the best methods and procedures for carrying out the collective bargaining process. This should include the responsibilities of labor and management to negotiate freely and fairly with each other, and to refrain from strikes or lockouts until all possibilities of negotiation have been exhausted. Third, the underlying causes of labor management disputes. Some of the subjects presented here for investigation involve long-range study. Others can be considered immediately by the Commission and its recommendations can be submitted to the Congress in the near future. I recommend that this Commission make its first report, including specific legislative recommendations, not later than March 15, 1947. RESTRICTION Of MONOPOLY AND PROMOTION OF PRIVATE ENTERPRISE The second major policy I desire to lay before you has to do with the growing concentration of economic power and the threat to free competitive private enterprise. In 1941 the Temporary National Economic Committee completed a comprehensive investigation into the workings of the national economy. The Committee's study showed that, despite a half century of anti-trust law enforcement, one of the gravest threats to our welfare lay in the increasing concentration of power in the hands of a small number of giant organizations. During the war, this long-standing tendency toward economic concentration was accelerated. As a consequence, we now find that to a greater extent than ever before, whole industries are dominated by one or a few large organizations which can restrict production in the interest of higher profits and thus reduce employment and purchasing power. In an effort to assure full opportunity and free competition to business we will vigorously enforce the anti-trust laws. There is much the Congress can do to cooperate and assist in this program. To strengthen and enforce the laws that regulate business practices is not enough. Enforcement must be supplemented by positive measures of aid to new enterprises. Government assistance, research programs, and credit powers should be designed and used to promote the growth of new firms and new industries. Assistance to small business is particularly important at this time when thousands of veterans who are potential business and industrial leaders are beginning their careers. We should also give special attention to the decentralization of industry and the development of areas that are now under-industrialized. HOUSING The third major policy is also of great importance to the national economy: an aggressive program to encourage housing construction. The first federal program to relieve the veterans' housing shortage was announced in February 1946. In 1946 one million family housing units have been put under construction and more than 665,000 units have already been completed. The rate of expansion in construction has broken all records. In the coming year the number of dwelling units built will approach, if not surpass, the top construction year of 1926. The primary responsibility to deliver housing at reasonable prices that veterans can afford rests with private industry and with labor. The Government will continue to expedite the flow of key building materials, to limit nonresidential construction, and to give financial support where it will do the most good. Measures to stimulate rental housing and new types of housing construction will receive special emphasis. To reach our long-range goal of adequate housing for all our people, comprehensive housing legislation is urgently required, similar to the non-partisan bill passed by the Senate last year. At a minimum, such legislation should open the way for rebuilding the blighted areas of our cities and should establish positive incentives for the investment of billions of dollars of private capital in large-scale rental housing projects. It should provide for improvement of housing in rural areas and for the construction, over a 4-year period, of half a million units of public low-rental housing. It should authorize a single peacetime federal housing agency to assure efficient use of our resources on the vast housing front. FISCAL AFFAIRS The fourth major policy has to do with the balancing of the budget. In a prosperous period such as the present one, the budget of the Federal Government should be balanced. Prudent management of public finance requires that we begin the process of reducing the public debt. The budget which I shall submit to you this week has a small margin of surplus. In the Budget Message I am making recommendations which, if accepted, will result in a substantially larger surplus which should be applied to debt retirement. One of these recommendations is that the Congress take early action to continue throughout the next fiscal year the war excise tax rates which, under the present law, will expire on June 30, 1947. Expenditures relating to the war are still high. Considerable sums are required to alleviate world famine and suffering. Aid to veterans will continue at peak level. The world situation is such that large military expenditures are required. Interest on the public debt and certain other costs are irreducible. For these reasons I have had to practice stringent economy in preparing the budget; and I hope that the Congress will cooperate in this program of economy. AGRICULTURE The fifth major policy has to do with the welfare of our farm population. Production of food reached record heights in 1946. Much of our tremendous grain crop can readily be sold abroad and thus will become no threat to our domestic markets. But in the next few years American agriculture can face the same dangers it did after World War I. In the early twenties the Nation failed to maintain outlets for the new productive capacity of our agricultural plant. It failed to provide means to protect the farmer while he adjusted his acreage to peacetime demands. The result we all remember too well. Farm production stayed up while demand and prices fell, in contrast with industry where prices stayed up and output declined, farm surpluses piled up, and disaster followed. We must make sure of meeting the problems which we failed to meet after the first World War. Present laws give considerable stability to farm prices for 1947 and 1948, and these 2 years must be utilized to maintain and develop markets for our great productive power. The purpose of these laws was to permit an orderly transition from war to peace. The Government plan of support prices was not designed to absorb, at great cost, the unlimited surpluses of a highly productive agriculture. We must not wait until the guarantees expire to set the stage for permanent farm welfare The farmer is entitled to a fair income. Ways can be found to utilize his new skills and better practices, to expand his markets at home and abroad, and to carry out the objectives of a balanced pattern of peacetime production without either undue sacrifice by farm people or undue expense to the Government. HEALTH AND GENERAL WELFARE Of all our national resources, none is of more basic value than the health of our people. Over a year ago I presented to the Congress my views on a national health program. The Congress acted on several of the recommendations in this program-mental health, the health of mothers and children, and hospital construction. I urge this Congress to complete the work begun last year and to enact the most important recommendation of the program--to provide adequate medical care to all who need it, not as charity but on the basis of payments made by the beneficiaries of the program. One administrative change would help greatly to further our national program in the fields of health, education, and welfare. I again recommend the establishment of a well-integrated Department of Welfare. VETERANS Fourteen million World War II servicemen have returned to civil life. The great majority have found their places as citizens of their communities and their Nation. It is a tribute to the fiber of our servicemen and to the flexibility of our economy that these adjustments have been made so rapidly and so successfully. More than two million of these veterans are attending schools or acquiring job skills through the financial assistance of the Federal Government. Thousands of sick and wounded veterans are daily receiving the best of medical and hospital care. Half a million have obtained loans, with Government guarantees, to purchase homes or farms or to embark upon new businesses. Compensation is being paid in almost two million cases for disabilities or death. More than three million are continuing to mainlain their low-cost National Service Life Insurance policies. Almost seven million veterans have been aided by unemployment and self-employment allowances. Exclusive of mustering-out payments and terminal leave pay, the program for veterans of all wars is costing over seven billion dollars a year--one-fifth of our total federal budget. This is the most far-reaching and complete veterans program ever conceived by any nation. Except for minor adjustments, I believe that our program of benefits for veterans is now complete. In the long run, the success of the program will not be measured by the number of veterans receiving financial aid or by the number of dollars we spend. History will judge us not by the money we spend, but by the further contribution we enable our veterans to make to their country. In considering any additional legislation, that must be our criterion. CIVIL RIGHTS We have recently witnessed in this country numerous attacks upon the constitutional rights of individual citizens as a result of racial and religious bigotry. Substantial segments of our people have been prevented from exercising fully their right to participate in the election of public officials, both locally and nationally. Freedom to engage in lawful callings has been denied. The will to fight these crimes should be in the hearts of every one of us. For the Federal Government that fight is now being carried on by the Department of Justice to the full extent of the powers that have been conferred upon it. While the Constitution withholds from the Federal Government the major task of preserving peace in the several States, I am not convinced that the present legislation reached the limit of federal power to protect the civil rights of its citizens. I have, therefore, by Executive Order, established the President's Committee on Civil Rights to study and report on the whole problem of federally-secured civil rights, with a view to making recommendations to the Congress. 1 Executive Order 9808 (3 CFR, 1943-1948 Comp., p. 590.) NATURAL RESOURCES In our responsibility to promote the general welfare of the people, we have always to consider the natural resources of our country. They are the foundation of our life. In the development of the great river systems of America there is the major opportunity of our generation to contribute to the increase of the national wealth. This program is already well along; it should be pushed with full vigor. I must advise the Congress that we are rapidly becoming a "have not" Nation as to many of our minerals. The economic progress and the security of our country depend upon an expanding return of mineral discovery and upon improved methods of recovery. The Federal Government must do its part to meet this need. FOREIGN AFFAIRS Progress in reaching our domestic goals is closely related to our conduct of foreign affairs. All that I have said about maintaining a sound and prosperous economy and improving the welfare of our people has greater meaning because of the world leadership of the United States. What we do, or fail to do, at home affects not only ourselves but millions throughout the world. If we are to fulfill our responsibilities to ourselves and to other peoples, we must make sure that the United States is sound economically, socially, and politically. Only then will we be able to help bring about the elements of peace in other countries--political stability, economic advancement, and social progress. Peace treaties for Italy, Bulgaria, Rumania, and Hungary have finally been prepared. Following the signing of these treaties next month in Paris, they will be submitted to the Senate for ratification. This Government does not regard the treaties as completely satisfactory. Whatever their defects, however, I am convinced that they are as good as we can hope to obtain by agreement among the principal wartime Allies. Further dispute and delay would gravely jeopardize political stability in the countries concerned for many years. During the long months of debate on these treaties, we have made it clear to all nations that the United States will not consent to settlements at the expense of principles we regard as vital to a just and enduring peace. We have made it equally dear that we will not retreat to isolationism. Our policies will be the same during the forthcoming negotiations in Moscow on the German and Austrian treaties, and during the future conferences on the Japanese treaty. The delay in arriving at the first peace settlements is due partly to the difficulty of reaching agreement with the Soviet Union on the terms of settlement. Whatever differences there may have been between us and the Soviet Union, however, should not be allowed to obscure the fact that the basic interests of both nations lie in the early making of a peace under which the peoples of all countries may return, as free men and women, to the essential tasks of production and reconstruction. The major concern of each of us should be the promotion of collective security, not the advancement of individual security. Our policy toward the Soviet Union is guided by the same principles which determine our policies toward all nations. We seek only to uphold the principles of international justice which have been embodied in the Charter of the United Nations. We must now get on with the peace settlements. The occupying powers should recognize the independence of Austria and withdraw their troops. The Germans and the Japanese cannot be left in doubt and fear as to their future; they must know their national boundaries, their resources, and what reparations they must pay. Without trying to manage their internal affairs, we can insure that these countries do not re-arm. INTERNATIONAL RELIEF AND DISPLACED PERSONS The United States can be proud of its part in caring for the peoples reduced to want by the ravages of war, and in aiding nations to restore their national economies. We have shipped more supplies to the hungry peoples of the world since the end of the war than all other countries combined! However, insofar as admitting displaced persons is concerned, I do not feel that the United States has done its part. Only about 5,000 of them have entered this country since May, 1946. The fact is that the executive agencies are now doing all that is reasonably possible under the limitation of the existing law and established quotas. Congressional assistance in the form of new legislation is needed. I urge the Congress to turn its attention to this world problem, in an effort to find ways whereby we can fulfill our responsibilities to these thousands of homeless and suffering refugees of all faiths. INTERNATIONAL TRADE World economic cooperation is essential to world political cooperation. We have made a good start on economic cooperation through the International Bank, the International Monetary fund, and the Export-Import Bank. We must now take other steps for the reconstruction of world trade and we should continue to strive for an international trade system as free from obstructions as possible. ATOMIC ENERGY The United States has taken the lead in the endeavor to put atomic energy under effective international control. We seek no monopoly for ourselves or for any group of nations. We ask only that there be safeguards sufficient to insure that no nation will be able to use this power for military purposes. So long as all governments are not agreed on means of international control of atomic energy, the shadow of fear will obscure the bright prospects for the peaceful use of this enormous power. In accordance with the Atomic Energy Act of 1946, the Commission established under that law is assuming full jurisdiction over domestic atomic energy enterprise. The program of the Commission will, of course, be worked out in close collaboration with the military services in conformity with the wish of the Congress, but it is my fervent hope that the military significance of atomic energy will steadily decline. We look to the Commission to foster the development of atomic energy for industrial use and scientific and medical research. In the vigorous and effective development of peaceful uses of atomic energy rests our hope that this new force may ultimately be turned into a blessing for all nations. MILITARY POLICY In 1946 the Army and Navy completed the demobilization of their wartime forces. They are now maintaining the forces which we need for national defense and to fulfill our international obligations. We live in a world in which strength on the part of peace-loving nations is still the greatest deterrent to aggression. World stability can be destroyed when nations with great responsibilities neglect to maintain the means of discharging those responsibilities. This is an age when unforeseen attack could come with unprecedented speed. We must be strong enough to defeat, and thus forestall, any such attack. In our steady Progress toward a more rational world order, the need for large armed forces is progressively declining; but the stabilizing force of American military strength must not be weakened until our hopes are fully realized. When a system of collective security under the United Nations has been established, we shall be willing to lead in collective disarmament, but, until such a system becomes a reality, we must not again allow ourselves to become weak and invite attack. For those reasons, we need well-equipped, well-trained armed forces and we must be able to mobilize rapidly our resources in men and material for our own defense, should the need arise. The Army will be reduced to 1,070,000 officers and men by July 1, 1947. Half of the Army will be used for occupation duties abroad and most of the remainder will be employed at home in the support of these overseas forces. The Navy is supporting the occupation troops in Europe and in the Far East. Its fundamental mission--to support our national interests wherever required--is unchanged. The Navy, including the Marine Corps, will average 571,000 officers and men during the fiscal year 1948. We are encountering serious difficulties in maintaining our forces at even these reduced levels. Occupation troops are barely sufficient to carry out the duties which our foreign policy requires. Our forces at home are at a point where further reduction is impracticable. We should like an Army and a Navy composed entirely of long-term volunteers, but in spite of liberal inducements the basic needs of the Army are not now being met by voluntary enlistments. The War Department has advised me that it is unable to make an accurate forecast at the present time as to whether it will be possible to maintain the strength of the Army by relying exclusively on volunteers. The situation will be much clearer in a few weeks, when the results of the campaign for volunteers are known. The War Department will make its recommendations as to the need for the extension of Selective Service in sufficient time to enable the Congress to take action prior to the expiration of the present law on March 31st. The responsibility for maintaining our armed forces at the strength necessary for our national safety rests with the Congress. The development of a trained citizen reserve is also vital to our national security. This can best be accomplished through universal training. I have appointed an Advisory Commission on Universal Training to study the various plans for a training program, and I expect that the recommendations of the Commission will be of benefit to the Congress and to me in reaching decisions on this problem. The cost of the military establishment is substantial. There is one certain way by which we can cut costs and at the same time enhance our national security. That is by the establishment of a single Department of National Defense. I shall communicate with the Congress in the near future with reference to the establishment of a single Department of National Defense. National security does not consist only of an army, a navy, and an air force. It rests on a much broader basis. It depends on a sound economy of prices and wages, on prosperous agriculture, on satisfied and productive workers, on a competitive private enterprise free from monopolistic repression, on continued industrial harmony and production, on civil liberties and human freedoms-on all the forces which create in our men and women a strong moral fiber and spiritual stamina. But we have a higher duty and a greater responsibility than the attainment of our own national security. Our goal is collective security for all mankind. If we can work in a spirit of understanding and mutual respect, we can fulfill this solemn obligation which rests upon us. The spirit of the American people can set the course of world history. If we maintain and strengthen our cherished ideals, and if we share our great bounty with war-stricken people over the world, then the faith of our citizens in freedom and democracy will be spread over the whole earth and free men everywhere will share our devotion to those ideals. Let us have the will and the patience to this job together. May the Lord strengthen us in our faith. May He give us wisdom to lead the peoples of the world in His ways of peace.
president speaker members of the congress of the united states it looks like a good many of you have moved over to the left since i was here last i come before you today to report on the state of the union and in the words of the constitution to recommend such measures as i judge necessary and expedient i come also to welcome you as you take up your duties and to discuss with you the manner in which you and i should fulfill our obligations to the american people during the next 2 years the power to mold the future of this nation lies in our hands yours and mine and they are joined together by the constitution if in this year and in the next we can find the right course to take as each issue arises and if in spite of all difficulties we have the courage and the resolution to take that course then we shall achieve a state of for our people without precedent in history and if we continue to work with the other nations of the world earnestly patiently and wisely we can granting a will for peace on the part of our a lasting peace for the world but if we are to realize these ends the congress and the president during the next 2 years must work together it is not unusual in our history that the majority of the congress represents a party in opposition to the president party i am the twentieth president of the united states who at some time during his term of office has found his own party to be in the minority in one or both houses of congress the first one was george washington wilson was number eighteen and hoover was number nineteen i realize that on some matters the congress and the president may have honest differences of opinion partisan differences however did not because material disagreements as to the conduct of the war nor in the conduct of our international relations during and since the war have such partisan differences been material on some domestic issues we may and probably shall disagree that in itself is not to be feared it is inherent in our form of government but there are ways of disagreeing men who differ can still work together sincerely for the common good we shall be risking the nation safety and destroying our opportunities for progress if we do not settle any disagreements in this spirit without thought of partisan advantage the general domestic economy as the year 1947 begins the state of our national economy presents great opportunities for all we have virtually full employment our national production of goods and services is 50 percent higher than in any year prior to the war emergency the national income in 1946 was higher than in any peacetime year our food production is greater than it has ever been during the last 5 years our productive facilities have been expanded in almost every field the american standard of living is higher now than ever before and when the housing shortage can be overcome it will be even higher during the past few months we have removed at a rapid rate the emergency controls that the federal government had to exercise during the war the remaining controls will be retained only as long as they are needed to protect the public private enterprise must be given the greatest possible freedom to continue the expansion of economy in my proclamation of december 31 1946 i announced the termination of hostilities this automatically ended certain temporary legislation and certain executive powers two groups of temporary laws still remain the first are those which by congressional mandate are to last during the emergency the second are those which are to continue until the termination of the war i shall submit to the congress recommendations for the repeal of certain of the statutes which by their terms continue for the duration of the emergency i shall at the same time recommend that others within this classification be extended until the state of war has been ended by treaty or by legislative action as to those statutes which continue until the state of war has been terminated i urge that the congress promptly consider each statute individually and repeal such emergency legislation where it is advisable now that nearly all wartime controls have been removed the operation of our industrial system depends to a greater extent on the decisions of businessmen farmers and workers these decisions must be wisely made with genuine concern for public welfare the welfare of businessmen farmers and workers depends upon the economic of those who buy their products an important present source of danger to our economy is the possibility that prices might be raised to such an extent that the consuming public could not purchase the tremendous volume of goods and services which will be produced during 1947 we all know that recent price increases have denied to many of our workers much of the value of recent wage increases farmers have found that a large part of their increased income has been absorbed by increased prices while some of our people have received raises in income which exceed price increases the great majority have not those persons who live on modest fixed incomes retired persons living on pensions for example and workers whose incomes are relatively inflexible such as teachers and other civil servants have suffered hardship in the effort to bring about a sound and equitable price structure each group of our population has its own responsibilities it is up to industry not only to hold the line on existing prices but to make reductions whenever profits justify such action it is up to labor to refrain from pressing for unjustified wage increases that will force increases in the price level and it is up to government to do everything in its power to encourage production for that is what makes possible good wages low prices and reasonable profits in a few days there will be submitted to the congress the economic report of the president and also the budget message those messages will contain many recommendations today i shall outline five major economic policies which i believe the government should pursue during 1947 these policies are designed to meet our immediate needs and at the same time to provide for the welfare of our free enterprise system first the promotion of greater harmony between labor and management second restriction of monopoly and unfair business practices assistance to small business and the promotion of the free competitive system of private enterprise third continuation of an aggressive program of home construction fourth the balancing of the budget in the next fiscal year and the achieving of a substantial surplus to be applied to the reduction of the public debt fifth protection of a fair level of return to farmers in agriculture labor and management the year just past like the year after the first world war was marred by labor management strife despite this outbreak of economic warfare in 1946 we are today producing goods and services in record volume nevertheless it is essential to improve the methods for reaching agreement between labor and management and to reduce the number of strikes and lockouts we must not however adopt punitive legislation we must not in order to punish a few labor leaders pass vindictive laws which will restrict the proper rights of the rank and file of labor we must not under the stress of emotion endanger our american freedoms by taking action which will lead to results not anticipated or desired we must remember in reviewing the record of disputes in 1946 that management shares with labor the responsibility for failure to reach agreements which would have averted strikes for that reason we must realize that industrial peace can not be achieved merely by laws directed against labor unions during the last decade and a half we have established a national labor policy in this country based upon free collective bargaining as the process for determining wages and working conditions that is still the national policy and it should continue to be the national policy but as yet not all of us have learned what it means to bargain freely and fairly nor have all of us learned to carry the mutual responsibilities that accompany the right to bargain there have been abuses and harmful practices which limit the effectiveness of our system of collective bargaining furthermore we have lacked sufficient governmental machinery to aid labor and management in resolving their differences certain problems need attention at once and certain others by reason of their complexity need exhaustive investigation and study we should enact legislation to correct certain abuses and to provide additional governmental assistance in bargaining but we should also concern ourselves with the basic causes of difficulties in the light of these considerations i propose to you and urge your cooperation in effecting the following program to reduce industrial strife point number one is the early enactment of legislation to prevent certain unjustifiable practices first under this point are jurisdictional strikes in such strikes the public and the employer are innocent bystanders who are injured by a collision between rival unions this type of dispute hurts production industry and the public and labor itself i consider jurisdictional strikes indefensible the national labor relations act provides procedures for determining which union represents employees of a particular employer in some jurisdictional disputes however minority unions strike to compel employers to deal with them despite a legal duty to bargain with the majority union strikes to compel an employer to violate the law are inexcusable legislation to prevent such strikes is clearly desirable another form of disagreement is the jurisdictional strike involving the question of which labor union is entitled to perform a particular task when rival unions are unable to settle such disputes themselves provision must be made for peaceful and binding determination of the issues a second unjustifiable practice is the secondary boycott when used to further jurisdictional disputes or to compel employers to violate the national labor relations act not all secondary boycotts are unjustified we must judge them on the basis of their objectives for example boycotts intended to protect wage rates and working conditions should be distinguished from those in furtherance of jurisdictional disputes the structure of industry sometimes requires unions as a matter of to extend the conflict beyond a particular employer there should be no blanket prohibition against boycotts the appropriate goal is legislation which prohibits secondary boycotts in pursuance of unjustifiable objectives but does not impair the union right to preserve its own existence and the gains made in genuine collective bargaining a third practice that should be corrected is the use of economic force by either labor or management to decide issues arising out of the interpretation of existing contracts collective bargaining agreements like other contracts should be faithfully adhered to by both parties in the most enlightened relationships disputes over the interpretation of contract terms are settled peaceably by negotiation or arbitration legislation should be enacted to provide machinery whereby unsettled disputes concerning the interpretation of an existing agreement may be referred by either party to final and binding arbitration point number two is the extension of facilities within the department of labor for assisting collective bargaining one of our difficulties in avoiding labor strife arises from a lack of order in the collective bargaining process the parties often do not have a dear understanding of their responsibility for settling disputes through their own negotiations we constantly see instances where labor or management resorts to economic force without exhausting the possibilities for agreement through the bargaining process neither the parties nor the government have a definite yardstick for determining when and how government assistance should be invoked there is need for integrated governmental machinery to provide the successive steps of mediation voluntary arbitration and ultimately in appropriate cases ascertainment of the facts of the dispute and the reporting of the facts to the public such machinery would facilitate and expedite the settlement of disputes point number three is the broadening of our program of social legislation to alleviate the causes of workers insecurity on june 11 1946 in my message vetoing the case bill i made a comprehensive statement of my views concerning relations i said then and i repeat now that the solution of difficulties is to be found not only in legislation dealing directly with labor relations but also in a program designed to remove the causes of insecurity felt by many workers in our industrial society in this connection for example the congress should consider the extension and broadening of our social security system better housing a comprehensive national health program and provision for a fair minimum wage point number four is the appointment of a temporary joint commission to inquire into the entire field of relations i recommend that the congress provide for the appointment of a temporary joint commission to undertake this broad study the president the congress and management and labor have a continuing responsibility to cooperate in seeking and finding the solution of these problems i therefore recommend that the commission be composed as follows twelve to be chosen by the congress from members of both parties in the house and the senate and eight representing the public management and labor to be appointed by the president the commission should be charged with investigating and making recommendations upon certain major subjects among others first the special and unique problem of nationwide strikes in vital industries affecting the public interest in particular the commission should examine into the question of how to settle or prevent such strikes without endangering our general democratic freedoms upon a proper solution of this problem may depend the whole industrial future of the united states the paralyzing effects of a nationwide strike in such industries as transportation coal oil steel or communications can result in national disaster we have been able to avoid such disaster in recent years only by the use of extraordinary war powers all those powers will soon be gone in their place there must be created an adequate system and effective machinery in these vital fields this problem will require careful study and a bold approach but an approach consistent with the preservation of the rights of our people the need is pressing the commission should give this its earliest attention second the best methods and procedures for carrying out the collective bargaining process this should include the responsibilities of labor and management to negotiate freely and fairly with each other and to refrain from strikes or lockouts until all possibilities of negotiation have been exhausted third the underlying causes of labor management disputes some of the subjects presented here for investigation involve study others can be considered immediately by the commission and its recommendations can be submitted to the congress in the near future i recommend that this commission make its first report including specific legislative recommendations not later than march 15 1947 restriction of monopoly and promotion of private enterprise the second major policy i desire to lay before you has to do with the growing concentration of economic power and the threat to free competitive private enterprise in 1941 the temporary national economic committee completed a comprehensive investigation into the workings of the national economy the committee study showed that despite a half century of law enforcement one of the gravest threats to our welfare lay in the increasing concentration of power in the hands of a small number of giant organizations during the war this tendency toward economic concentration was accelerated as a consequence we now find that to a greater extent than ever before whole industries are dominated by one or a few large organizations which can restrict production in the interest of higher profits and thus reduce employment and purchasing power in an effort to assure full opportunity and free competition to business we will vigorously enforce the laws there is much the congress can do to cooperate and assist in this program to strengthen and enforce the laws that regulate business practices is not enough enforcement must be supplemented by positive measures of aid to new enterprises government assistance research programs and credit powers should be designed and used to promote the growth of new firms and new industries assistance to small business is particularly important at this time when thousands of veterans who are potential business and industrial leaders are beginning their careers we should also give special attention to the decentralization of industry and the development of areas that are now housing the third major policy is also of great importance to the national economy an aggressive program to encourage housing construction the first federal program to relieve the veterans housing shortage was announced in february 1946 in 1946 one million family housing units have been put under construction and more than units have already been completed the rate of expansion in construction has broken all records in the coming year the number of dwelling units built will approach if not surpass the top construction year of 1926 the primary responsibility to deliver housing at reasonable prices that veterans can afford rests with private industry and with labor the government will continue to expedite the flow of key building materials to limit nonresidential construction and to give financial support where it will do the most good measures to stimulate rental housing and new types of housing construction will receive special emphasis to reach our goal of adequate housing for all our people comprehensive housing legislation is urgently required similar to the bill passed by the senate last year at a minimum such legislation should open the way for rebuilding the blighted areas of our cities and should establish positive incentives for the investment of billions of dollars of private capital in rental housing projects it should provide for improvement of housing in rural areas and for the construction over a period of half a million units of public housing it should authorize a single peacetime federal housing agency to assure efficient use of our resources on the vast housing front fiscal affairs the fourth major policy has to do with the balancing of the budget in a prosperous period such as the present one the budget of the federal government should be balanced prudent management of public finance requires that we begin the process of reducing the public debt the budget which i shall submit to you this week has a small margin of surplus in the budget message i am making recommendations which if accepted will result in a substantially larger surplus which should be applied to debt retirement one of these recommendations is that the congress take early action to continue throughout the next fiscal year the war excise tax rates which under the present law will expire on june 30 1947 expenditures relating to the war are still high considerable sums are required to alleviate world famine and suffering aid to veterans will continue at peak level the world situation is such that large military expenditures are required interest on the public debt and certain other costs are irreducible for these reasons i have had to practice stringent economy in preparing the budget and i hope that the congress will cooperate in this program of economy agriculture the fifth major policy has to do with the welfare of our farm population production of food reached record heights in 1946 much of our tremendous grain crop can readily be sold abroad and thus will become no threat to our domestic markets but in the next few years american agriculture can face the same dangers it did after world war i in the early twenties the nation failed to maintain outlets for the new productive capacity of our agricultural plant it failed to provide means to protect the farmer while he adjusted his acreage to peacetime demands the result we all remember too well farm production stayed up while demand and prices fell in contrast with industry where prices stayed up and output declined farm surpluses piled up and disaster followed we must make sure of meeting the problems which we failed to meet after the first world war present laws give considerable stability to farm prices for 1947 and 1948 and these 2 years must be utilized to maintain and develop markets for our great productive power the purpose of these laws was to permit an orderly transition from war to peace the government plan of support prices was not designed to absorb at great cost the unlimited surpluses of a highly productive agriculture we must not wait until the guarantees expire to set the stage for permanent farm welfare the farmer is entitled to a fair income ways can be found to utilize his new skills and better practices to expand his markets at home and abroad and to carry out the objectives of a balanced pattern of peacetime production without either undue sacrifice by farm people or undue expense to the government health and general welfare of all our national resources none is of more basic value than the health of our people over a year ago i presented to the congress my views on a national health program the congress acted on several of the recommendations in this health the health of mothers and children and hospital construction i urge this congress to complete the work begun last year and to enact the most important recommendation of the program to provide adequate medical care to all who need it not as charity but on the basis of payments made by the beneficiaries of the program one administrative change would help greatly to further our national program in the fields of health education and welfare i again recommend the establishment of a department of welfare veterans fourteen million world war ii servicemen have returned to civil life the great majority have found their places as citizens of their communities and their nation it is a tribute to the fiber of our servicemen and to the flexibility of our economy that these adjustments have been made so rapidly and so successfully more than two million of these veterans are attending schools or acquiring job skills through the financial assistance of the federal government thousands of sick and wounded veterans are daily receiving the best of medical and hospital care half a million have obtained loans with government guarantees to purchase homes or farms or to embark upon new businesses compensation is being paid in almost two million cases for disabilities or death more than three million are continuing to mainlain their national service life insurance policies almost seven million veterans have been aided by unemployment and allowances exclusive of payments and terminal leave pay the program for veterans of all wars is costing over seven billion dollars a year of our total federal budget this is the most and complete veterans program ever conceived by any nation except for minor adjustments i believe that our program of benefits for veterans is now complete in the long run the success of the program will not be measured by the number of veterans receiving financial aid or by the number of dollars we spend history will judge us not by the money we spend but by the further contribution we enable our veterans to make to their country in considering any additional legislation that must be our criterion civil rights we have recently witnessed in this country numerous attacks upon the constitutional rights of individual citizens as a result of racial and religious bigotry substantial segments of our people have been prevented from exercising fully their right to participate in the election of public officials both locally and nationally freedom to engage in lawful callings has been denied the will to fight these crimes should be in the hearts of every one of us for the federal government that fight is now being carried on by the department of justice to the full extent of the powers that have been conferred upon it while the constitution withholds from the federal government the major task of preserving peace in the several states i am not convinced that the present legislation reached the limit of federal power to protect the civil rights of its citizens i have therefore by executive order established the president committee on civil rights to study and report on the whole problem of civil rights with a view to making recommendations to the congress 1 executive order 9808 3 cfr p 590 natural resources in our responsibility to promote the general welfare of the people we have always to consider the natural resources of our country they are the foundation of our life in the development of the great river systems of america there is the major opportunity of our generation to contribute to the increase of the national wealth this program is already well along it should be pushed with full vigor i must advise the congress that we are rapidly becoming a have not nation as to many of our minerals the economic progress and the security of our country depend upon an expanding return of mineral discovery and upon improved methods of recovery the federal government must do its part to meet this need foreign affairs progress in reaching our domestic goals is closely related to our conduct of foreign affairs all that i have said about maintaining a sound and prosperous economy and improving the welfare of our people has greater meaning because of the world leadership of the united states what we do or fail to do at home affects not only ourselves but millions throughout the world if we are to fulfill our responsibilities to ourselves and to other peoples we must make sure that the united states is sound economically socially and politically only then will we be able to help bring about the elements of peace in other countries political stability economic advancement and social progress peace treaties for italy bulgaria rumania and hungary have finally been prepared following the signing of these treaties next month in paris they will be submitted to the senate for ratification this government does not regard the treaties as completely satisfactory whatever their defects however i am convinced that they are as good as we can hope to obtain by agreement among the principal wartime allies further dispute and delay would gravely jeopardize political stability in the countries concerned for many years during the long months of debate on these treaties we have made it clear to all nations that the united states will not consent to settlements at the expense of principles we regard as vital to a just and enduring peace we have made it equally dear that we will not retreat to isolationism our policies will be the same during the forthcoming negotiations in moscow on the german and austrian treaties and during the future conferences on the japanese treaty the delay in arriving at the first peace settlements is due partly to the difficulty of reaching agreement with the soviet union on the terms of settlement whatever differences there may have been between us and the soviet union however should not be allowed to obscure the fact that the basic interests of both nations lie in the early making of a peace under which the peoples of all countries may return as free men and women to the essential tasks of production and reconstruction the major concern of each of us should be the promotion of collective security not the advancement of individual security our policy toward the soviet union is guided by the same principles which determine our policies toward all nations we seek only to uphold the principles of international justice which have been embodied in the charter of the united nations we must now get on with the peace settlements the occupying powers should recognize the independence of austria and withdraw their troops the germans and the japanese can not be left in doubt and fear as to their future they must know their national boundaries their resources and what reparations they must pay without trying to manage their internal affairs we can insure that these countries do not international relief and displaced persons the united states can be proud of its part in caring for the peoples reduced to want by the ravages of war and in aiding nations to restore their national economies we have shipped more supplies to the hungry peoples of the world since the end of the war than all other countries combined however insofar as admitting displaced persons is concerned i do not feel that the united states has done its part only about of them have entered this country since may 1946 the fact is that the executive agencies are now doing all that is reasonably possible under the limitation of the existing law and established quotas congressional assistance in the form of new legislation is needed i urge the congress to turn its attention to this world problem in an effort to find ways whereby we can fulfill our responsibilities to these thousands of homeless and suffering refugees of all faiths international trade world economic cooperation is essential to world political cooperation we have made a good start on economic cooperation through the international bank the international monetary fund and the bank we must now take other steps for the reconstruction of world trade and we should continue to strive for an international trade system as free from obstructions as possible atomic energy the united states has taken the lead in the endeavor to put atomic energy under effective international control we seek no monopoly for ourselves or for any group of nations we ask only that there be safeguards sufficient to insure that no nation will be able to use this power for military purposes so long as all governments are not agreed on means of international control of atomic energy the shadow of fear will obscure the bright prospects for the peaceful use of this enormous power in accordance with the atomic energy act of 1946 the commission established under that law is assuming full jurisdiction over domestic atomic energy enterprise the program of the commission will of course be worked out in close collaboration with the military services in conformity with the wish of the congress but it is my fervent hope that the military significance of atomic energy will steadily decline we look to the commission to foster the development of atomic energy for industrial use and scientific and medical research in the vigorous and effective development of peaceful uses of atomic energy rests our hope that this new force may ultimately be turned into a blessing for all nations military policy in 1946 the army and navy completed the demobilization of their wartime forces they are now maintaining the forces which we need for national defense and to fulfill our international obligations we live in a world in which strength on the part of nations is still the greatest deterrent to aggression world stability can be destroyed when nations with great responsibilities neglect to maintain the means of discharging those responsibilities this is an age when unforeseen attack could come with unprecedented speed we must be strong enough to defeat and thus forestall any such attack in our steady progress toward a more rational world order the need for large armed forces is progressively declining but the stabilizing force of american military strength must not be weakened until our hopes are fully realized when a system of collective security under the united nations has been established we shall be willing to lead in collective disarmament but until such a system becomes a reality we must not again allow ourselves to become weak and invite attack for those reasons we need armed forces and we must be able to mobilize rapidly our resources in men and material for our own defense should the need arise the army will be reduced to officers and men by july 1 1947 half of the army will be used for occupation duties abroad and most of the remainder will be employed at home in the support of these overseas forces the navy is supporting the occupation troops in europe and in the far east its fundamental mission to support our national interests wherever required is unchanged the navy including the marine corps will average officers and men during the fiscal year 1948 we are encountering serious difficulties in maintaining our forces at even these reduced levels occupation troops are barely sufficient to carry out the duties which our foreign policy requires our forces at home are at a point where further reduction is impracticable we should like an army and a navy composed entirely of volunteers but in spite of liberal inducements the basic needs of the army are not now being met by voluntary enlistments the war department has advised me that it is unable to make an accurate forecast at the present time as to whether it will be possible to maintain the strength of the army by relying exclusively on volunteers the situation will be much clearer in a few weeks when the results of the campaign for volunteers are known the war department will make its recommendations as to the need for the extension of selective service in sufficient time to enable the congress to take action prior to the expiration of the present law on march 31st the responsibility for maintaining our armed forces at the strength necessary for our national safety rests with the congress the development of a trained citizen reserve is also vital to our national security this can best be accomplished through universal training i have appointed an advisory commission on universal training to study the various plans for a training program and i expect that the recommendations of the commission will be of benefit to the congress and to me in reaching decisions on this problem the cost of the military establishment is substantial there is one certain way by which we can cut costs and at the same time enhance our national security that is by the establishment of a single department of national defense i shall communicate with the congress in the near future with reference to the establishment of a single department of national defense national security does not consist only of an army a navy and an air force it rests on a much broader basis it depends on a sound economy of prices and wages on prosperous agriculture on satisfied and productive workers on a competitive private enterprise free from monopolistic repression on continued industrial harmony and production on civil liberties and human all the forces which create in our men and women a strong moral fiber and spiritual stamina but we have a higher duty and a greater responsibility than the attainment of our own national security our goal is collective security for all mankind if we can work in a spirit of understanding and mutual respect we can fulfill this solemn obligation which rests upon us the spirit of the american people can set the course of world history if we maintain and strengthen our cherished ideals and if we share our great bounty with people over the world then the faith of our citizens in freedom and democracy will be spread over the whole earth and free men everywhere will share our devotion to those ideals let us have the will and the patience to this job together may the lord strengthen us in our faith may he give us wisdom to lead the peoples of the world in his ways of peace
president speaker members congress united states looks like good many moved left since last come today report state union words constitution recommend measures judge necessary expedient come also welcome take duties discuss manner fulfill obligations american people next 2 years power mold future nation lies hands mine joined together constitution year next find right course take issue arises spite difficulties courage resolution take course shall achieve state people without precedent history continue work nations world earnestly patiently wisely granting peace part lasting peace world realize ends congress president next 2 years must work together unusual history majority congress represents party opposition president party twentieth president united states time term office found party minority one houses congress first one george washington wilson number eighteen hoover number nineteen realize matters congress president may honest differences opinion partisan differences however material disagreements conduct war conduct international relations since war partisan differences material domestic issues may probably shall disagree feared inherent form government ways disagreeing men differ still work together sincerely common good shall risking nation safety destroying opportunities progress settle disagreements spirit without thought partisan advantage general domestic economy year 1947 begins state national economy presents great opportunities virtually full employment national production goods services 50 percent higher year prior war emergency national income 1946 higher peacetime year food production greater ever last 5 years productive facilities expanded almost every field american standard living higher ever housing shortage overcome even higher past months removed rapid rate emergency controls federal government exercise war remaining controls retained long needed protect public private enterprise must given greatest possible freedom continue expansion economy proclamation december 31 1946 announced termination hostilities automatically ended certain temporary legislation certain executive powers two groups temporary laws still remain first congressional mandate last emergency second continue termination war shall submit congress recommendations repeal certain statutes terms continue duration emergency shall time recommend others within classification extended state war ended treaty legislative action statutes continue state war terminated urge congress promptly consider statute individually repeal emergency legislation advisable nearly wartime controls removed operation industrial system depends greater extent decisions businessmen farmers workers decisions must wisely made genuine concern public welfare welfare businessmen farmers workers depends upon economic buy products important present source danger economy possibility prices might raised extent consuming public could purchase tremendous volume goods services produced 1947 know recent price increases denied many workers much value recent wage increases farmers found large part increased income absorbed increased prices people received raises income exceed price increases great majority persons live modest fixed incomes retired persons living pensions example workers whose incomes relatively inflexible teachers civil servants suffered hardship effort bring sound equitable price structure group population responsibilities industry hold line existing prices make reductions whenever profits justify action labor refrain pressing unjustified wage increases force increases price level government everything power encourage production makes possible good wages low prices reasonable profits days submitted congress economic report president also budget message messages contain many recommendations today shall outline five major economic policies believe government pursue 1947 policies designed meet immediate needs time provide welfare free enterprise system first promotion greater harmony labor management second restriction monopoly unfair business practices assistance small business promotion free competitive system private enterprise third continuation aggressive program home construction fourth balancing budget next fiscal year achieving substantial surplus applied reduction public debt fifth protection fair level return farmers agriculture labor management year past like year first world war marred labor management strife despite outbreak economic warfare 1946 today producing goods services record volume nevertheless essential improve methods reaching agreement labor management reduce number strikes lockouts must however adopt punitive legislation must order punish labor leaders pass vindictive laws restrict proper rights rank file labor must stress emotion endanger american freedoms taking action lead results anticipated desired must remember reviewing record disputes 1946 management shares labor responsibility failure reach agreements would averted strikes reason must realize industrial peace achieved merely laws directed labor unions last decade half established national labor policy country based upon free collective bargaining process determining wages working conditions still national policy continue national policy yet us learned means bargain freely fairly us learned carry mutual responsibilities accompany right bargain abuses harmful practices limit effectiveness system collective bargaining furthermore lacked sufficient governmental machinery aid labor management resolving differences certain problems need attention certain others reason complexity need exhaustive investigation study enact legislation correct certain abuses provide additional governmental assistance bargaining also concern basic causes difficulties light considerations propose urge cooperation effecting following program reduce industrial strife point number one early enactment legislation prevent certain unjustifiable practices first point jurisdictional strikes strikes public employer innocent bystanders injured collision rival unions type dispute hurts production industry public labor consider jurisdictional strikes indefensible national labor relations act provides procedures determining union represents employees particular employer jurisdictional disputes however minority unions strike compel employers deal despite legal duty bargain majority union strikes compel employer violate law inexcusable legislation prevent strikes clearly desirable another form disagreement jurisdictional strike involving question labor union entitled perform particular task rival unions unable settle disputes provision must made peaceful binding determination issues second unjustifiable practice secondary boycott used jurisdictional disputes compel employers violate national labor relations act secondary boycotts unjustified must judge basis objectives example boycotts intended protect wage rates working conditions distinguished furtherance jurisdictional disputes structure industry sometimes requires unions matter extend conflict beyond particular employer blanket prohibition boycotts appropriate goal legislation prohibits secondary boycotts pursuance unjustifiable objectives impair union right preserve existence gains made genuine collective bargaining third practice corrected use economic force either labor management decide issues arising interpretation existing contracts collective bargaining agreements like contracts faithfully adhered parties enlightened relationships disputes interpretation contract terms settled peaceably negotiation arbitration legislation enacted provide machinery whereby unsettled disputes concerning interpretation existing agreement may referred either party final binding arbitration point number two extension facilities within department labor assisting collective bargaining one difficulties avoiding labor strife arises lack order collective bargaining process parties often dear understanding responsibility settling disputes negotiations constantly see instances labor management resorts economic force without exhausting possibilities agreement bargaining process neither parties government definite yardstick determining government assistance invoked need integrated governmental machinery provide successive steps mediation voluntary arbitration ultimately appropriate cases ascertainment facts dispute reporting facts public machinery would facilitate expedite settlement disputes point number three broadening program social legislation alleviate causes workers insecurity june 11 1946 message vetoing case bill made comprehensive statement views concerning relations said repeat solution difficulties found legislation dealing directly labor relations also program designed remove causes insecurity felt many workers industrial society connection example congress consider extension broadening social security system better housing comprehensive national health program provision fair minimum wage point number four appointment temporary joint commission inquire entire field relations recommend congress provide appointment temporary joint commission undertake broad study president congress management labor continuing responsibility cooperate seeking finding solution problems therefore recommend commission composed follows twelve chosen congress members parties house senate eight representing public management labor appointed president commission charged investigating making recommendations upon certain major subjects among others first special unique problem nationwide strikes vital industries affecting public interest particular commission examine question settle prevent strikes without endangering general democratic freedoms upon proper solution problem may depend whole industrial future united states paralyzing effects nationwide strike industries transportation coal oil steel communications result national disaster able avoid disaster recent years use extraordinary war powers powers soon gone place must created adequate system effective machinery vital fields problem require careful study bold approach approach consistent preservation rights people need pressing commission give earliest attention second best methods procedures carrying collective bargaining process include responsibilities labor management negotiate freely fairly refrain strikes lockouts possibilities negotiation exhausted third underlying causes labor management disputes subjects presented investigation involve study others considered immediately commission recommendations submitted congress near future recommend commission make first report including specific legislative recommendations later march 15 1947 restriction monopoly promotion private enterprise second major policy desire lay growing concentration economic power threat free competitive private enterprise 1941 temporary national economic committee completed comprehensive investigation workings national economy committee study showed despite half century law enforcement one gravest threats welfare lay increasing concentration power hands small number giant organizations war tendency toward economic concentration accelerated consequence find greater extent ever whole industries dominated one large organizations restrict production interest higher profits thus reduce employment purchasing power effort assure full opportunity free competition business vigorously enforce laws much congress cooperate assist program strengthen enforce laws regulate business practices enough enforcement must supplemented positive measures aid new enterprises government assistance research programs credit powers designed used promote growth new firms new industries assistance small business particularly important time thousands veterans potential business industrial leaders beginning careers also give special attention decentralization industry development areas housing third major policy also great importance national economy aggressive program encourage housing construction first federal program relieve veterans housing shortage announced february 1946 1946 one million family housing units put construction units already completed rate expansion construction broken records coming year number dwelling units built approach surpass top construction year 1926 primary responsibility deliver housing reasonable prices veterans afford rests private industry labor government continue expedite flow key building materials limit nonresidential construction give financial support good measures stimulate rental housing new types housing construction receive special emphasis reach goal adequate housing people comprehensive housing legislation urgently required similar bill passed senate last year minimum legislation open way rebuilding blighted areas cities establish positive incentives investment billions dollars private capital rental housing projects provide improvement housing rural areas construction period half million units public housing authorize single peacetime federal housing agency assure efficient use resources vast housing front fiscal affairs fourth major policy balancing budget prosperous period present one budget federal government balanced prudent management public finance requires begin process reducing public debt budget shall submit week small margin surplus budget message making recommendations accepted result substantially larger surplus applied debt retirement one recommendations congress take early action continue throughout next fiscal year war excise tax rates present law expire june 30 1947 expenditures relating war still high considerable sums required alleviate world famine suffering aid veterans continue peak level world situation large military expenditures required interest public debt certain costs irreducible reasons practice stringent economy preparing budget hope congress cooperate program economy agriculture fifth major policy welfare farm population production food reached record heights 1946 much tremendous grain crop readily sold abroad thus become threat domestic markets next years american agriculture face dangers world war early twenties nation failed maintain outlets new productive capacity agricultural plant failed provide means protect farmer adjusted acreage peacetime demands result remember well farm production stayed demand prices fell contrast industry prices stayed output declined farm surpluses piled disaster followed must make sure meeting problems failed meet first world war present laws give considerable stability farm prices 1947 1948 2 years must utilized maintain develop markets great productive power purpose laws permit orderly transition war peace government plan support prices designed absorb great cost unlimited surpluses highly productive agriculture must wait guarantees expire set stage permanent farm welfare farmer entitled fair income ways found utilize new skills better practices expand markets home abroad carry objectives balanced pattern peacetime production without either undue sacrifice farm people undue expense government health general welfare national resources none basic value health people year ago presented congress views national health program congress acted several recommendations health health mothers children hospital construction urge congress complete work begun last year enact important recommendation program provide adequate medical care need charity basis payments made beneficiaries program one administrative change would help greatly national program fields health education welfare recommend establishment department welfare veterans fourteen million world war ii servicemen returned civil life great majority found places citizens communities nation tribute fiber servicemen flexibility economy adjustments made rapidly successfully two million veterans attending schools acquiring job skills financial assistance federal government thousands sick wounded veterans daily receiving best medical hospital care half million obtained loans government guarantees purchase homes farms embark upon new businesses compensation paid almost two million cases disabilities death three million continuing mainlain national service life insurance policies almost seven million veterans aided unemployment allowances exclusive payments terminal leave pay program veterans wars costing seven billion dollars year total federal budget complete veterans program ever conceived nation except minor adjustments believe program benefits veterans complete long run success program measured number veterans receiving financial aid number dollars spend history judge us money spend contribution enable veterans make country considering additional legislation must criterion civil rights recently witnessed country numerous attacks upon constitutional rights individual citizens result racial religious bigotry substantial segments people prevented exercising fully right participate election public officials locally nationally freedom engage lawful callings denied fight crimes hearts every one us federal government fight carried department justice full extent powers conferred upon constitution withholds federal government major task preserving peace several states convinced present legislation reached limit federal power protect civil rights citizens therefore executive order established president committee civil rights study report whole problem civil rights view making recommendations congress 1 executive order 9808 3 cfr p 590 natural resources responsibility promote general welfare people always consider natural resources country foundation life development great river systems america major opportunity generation contribute increase national wealth program already well along pushed full vigor must advise congress rapidly becoming nation many minerals economic progress security country depend upon expanding return mineral discovery upon improved methods recovery federal government must part meet need foreign affairs progress reaching domestic goals closely related conduct foreign affairs said maintaining sound prosperous economy improving welfare people greater meaning world leadership united states fail home affects millions throughout world fulfill responsibilities peoples must make sure united states sound economically socially politically able help bring elements peace countries political stability economic advancement social progress peace treaties italy bulgaria rumania hungary finally prepared following signing treaties next month paris submitted senate ratification government regard treaties completely satisfactory whatever defects however convinced good hope obtain agreement among principal wartime allies dispute delay would gravely jeopardize political stability countries concerned many years long months debate treaties made clear nations united states consent settlements expense principles regard vital enduring peace made equally dear retreat isolationism policies forthcoming negotiations moscow german austrian treaties future conferences japanese treaty delay arriving first peace settlements due partly difficulty reaching agreement soviet union terms settlement whatever differences may us soviet union however allowed obscure fact basic interests nations lie early making peace peoples countries may return free men women essential tasks production reconstruction major concern us promotion collective security advancement individual security policy toward soviet union guided principles determine policies toward nations seek uphold principles international justice embodied charter united nations must get peace settlements occupying powers recognize independence austria withdraw troops germans japanese left doubt fear future must know national boundaries resources reparations must pay without trying manage internal affairs insure countries international relief displaced persons united states proud part caring peoples reduced want ravages war aiding nations restore national economies shipped supplies hungry peoples world since end war countries combined however insofar admitting displaced persons concerned feel united states done part entered country since may 1946 fact executive agencies reasonably possible limitation existing law established quotas congressional assistance form new legislation needed urge congress turn attention world problem effort find ways whereby fulfill responsibilities thousands homeless suffering refugees faiths international trade world economic cooperation essential world political cooperation made good start economic cooperation international bank international monetary fund bank must take steps reconstruction world trade continue strive international trade system free obstructions possible atomic energy united states taken lead endeavor put atomic energy effective international control seek monopoly group nations ask safeguards sufficient insure nation able use power military purposes long governments agreed means international control atomic energy shadow fear obscure bright prospects peaceful use enormous power accordance atomic energy act 1946 commission established law assuming full jurisdiction domestic atomic energy enterprise program commission course worked close collaboration military services conformity wish congress fervent hope military significance atomic energy steadily decline look commission foster development atomic energy industrial use scientific medical research vigorous effective development peaceful uses atomic energy rests hope new force may ultimately turned blessing nations military policy 1946 army navy completed demobilization wartime forces maintaining forces need national defense fulfill international obligations live world strength part nations still greatest deterrent aggression world stability destroyed nations great responsibilities neglect maintain means discharging responsibilities age unforeseen attack could come unprecedented speed must strong enough defeat thus forestall attack steady progress toward rational world order need large armed forces progressively declining stabilizing force american military strength must weakened hopes fully realized system collective security united nations established shall willing lead collective disarmament system becomes reality must allow become weak invite attack reasons need armed forces must able mobilize rapidly resources men material defense need arise army reduced officers men july 1 1947 half army used occupation duties abroad remainder employed home support overseas forces navy supporting occupation troops europe far east fundamental mission support national interests wherever required unchanged navy including marine corps average officers men fiscal year 1948 encountering serious difficulties maintaining forces even reduced levels occupation troops barely sufficient carry duties foreign policy requires forces home point reduction impracticable like army navy composed entirely volunteers spite liberal inducements basic needs army met voluntary enlistments war department advised unable make accurate forecast present time whether possible maintain strength army relying exclusively volunteers situation much clearer weeks results campaign volunteers known war department make recommendations need extension selective service sufficient time enable congress take action prior expiration present law march 31st responsibility maintaining armed forces strength necessary national safety rests congress development trained citizen reserve also vital national security best accomplished universal training appointed advisory commission universal training study various plans training program expect recommendations commission benefit congress reaching decisions problem cost military establishment substantial one certain way cut costs time enhance national security establishment single department national defense shall communicate congress near future reference establishment single department national defense national security consist army navy air force rests much broader basis depends sound economy prices wages prosperous agriculture satisfied productive workers competitive private enterprise free monopolistic repression continued industrial harmony production civil liberties human forces create men women strong moral fiber spiritual stamina higher duty greater responsibility attainment national security goal collective security mankind work spirit understanding mutual respect fulfill solemn obligation rests upon us spirit american people set course world history maintain strengthen cherished ideals share great bounty people world faith citizens freedom democracy spread whole earth free men everywhere share devotion ideals let us patience job together may lord strengthen us faith may give us wisdom lead peoples world ways peace
president speaker member congress united state look like good many move leave since last come today report state union word constitution recommend measure judge necessary expedient come also welcome take duty discuss manner fulfill obligation american people next 2 year power mold future nation lie hand mine join together constitution year next find right course take issue arise spite difficulty courage resolution take course shall achieve state people without precedent history continue work nation world earnestly patiently wisely grant peace part last peace world realize end congress president next 2 year must work together unusual history majority congress represent party opposition president party twentieth president united state time term office find party minority one house congress first one george washington wilson number eighteen hoover number nineteen realize matter congress president may honest difference opinion partisan difference however material disagreement conduct war conduct international relation since war partisan difference material domestic issue may probably shall disagree fear inherent form government way disagree men differ still work together sincerely common good shall risk nation safety destroy opportunity progress settle disagreement spirit without think partisan advantage general domestic economy year 1947 begin state national economy present great opportunity virtually full employment national production good service 50 percent high year prior war emergency national income 1946 high peacetime year food production great ever last 5 year productive facility expand almost every field american standard living high ever housing shortage overcome even high past month remove rapid rate emergency control federal government exercise war remain control retain long need protect public private enterprise must give great possible freedom continue expansion economy proclamation december 31 1946 announce termination hostility automatically end certain temporary legislation certain executive power two group temporary law still remain first congressional mandate last emergency second continue termination war shall submit congress recommendation repeal certain statute term continue duration emergency shall time recommend others within classification extend state war end treaty legislative action statute continue state war terminate urge congress promptly consider statute individually repeal emergency legislation advisable nearly wartime control remove operation industrial system depend great extent decision businessmen farmer worker decision must wisely make genuine concern public welfare welfare businessmen farmer worker depend upon economic buy product important present source danger economy possibility price might raise extent consume public could purchase tremendous volume good service produce 1947 know recent price increase deny many worker much value recent wage increase farmer find large part increase income absorbed increase price people receive raise income exceed price increase great majority person live modest fix income retire person live pension example worker whose income relatively inflexible teacher civil servant suffer hardship effort bring sound equitable price structure group population responsibility industry hold line exist price make reduction whenever profit justify action labor refrain press unjustified wage increase force increase price level government everything power encourage production make possible good wage low price reasonable profit day submit congress economic report president also budget message message contain many recommendation today shall outline five major economic policy believe government pursue 1947 policy design meet immediate need time provide welfare free enterprise system first promotion great harmony labor management second restriction monopoly unfair business practice assistance small business promotion free competitive system private enterprise third continuation aggressive program home construction fourth balance budget next fiscal year achieve substantial surplus apply reduction public debt fifth protection fair level return farmer agriculture labor management year past like year first world war mar labor management strife despite outbreak economic warfare 1946 today produce good service record volume nevertheless essential improve method reach agreement labor management reduce number strike lockout must however adopt punitive legislation must order punish labor leader pass vindictive law restrict proper right rank file labor must stress emotion endanger american freedom take action lead result anticipated desire must remember reviewing record dispute 1946 management share labor responsibility failure reach agreement would avert strike reason must realize industrial peace achieve merely law direct labor union last decade half establish national labor policy country base upon free collective bargaining process determine wage work condition still national policy continue national policy yet u learn mean bargain freely fairly u learn carry mutual responsibility accompany right bargain abuse harmful practice limit effectiveness system collective bargaining furthermore lack sufficient governmental machinery aid labor management resolve difference certain problem need attention certain others reason complexity need exhaustive investigation study enact legislation correct certain abuse provide additional governmental assistance bargaining also concern basic cause difficulty light consideration propose urge cooperation effect follow program reduce industrial strife point number one early enactment legislation prevent certain unjustifiable practice first point jurisdictional strike strike public employer innocent bystander injure collision rival union type dispute hurt production industry public labor consider jurisdictional strike indefensible national labor relation act provide procedure determine union represent employee particular employer jurisdictional dispute however minority union strike compel employer deal despite legal duty bargain majority union strike compel employer violate law inexcusable legislation prevent strike clearly desirable another form disagreement jurisdictional strike involve question labor union entitle perform particular task rival union unable settle dispute provision must make peaceful binding determination issue second unjustifiable practice secondary boycott use jurisdictional dispute compel employer violate national labor relation act secondary boycott unjustified must judge basis objective example boycott intend protect wage rate work condition distinguish furtherance jurisdictional dispute structure industry sometimes require unions matter extend conflict beyond particular employer blanket prohibition boycott appropriate goal legislation prohibit secondary boycott pursuance unjustifiable objective impair union right preserve existence gain make genuine collective bargaining third practice correct use economic force either labor management decide issue arise interpretation exist contract collective bargaining agreement like contract faithfully adhere party enlighten relationship dispute interpretation contract term settle peaceably negotiation arbitration legislation enact provide machinery whereby unsettle dispute concern interpretation exist agreement may refer either party final binding arbitration point number two extension facility within department labor assist collective bargaining one difficulties avoid labor strife arise lack order collective bargaining process party often dear understanding responsibility settle dispute negotiation constantly see instance labor management resort economic force without exhaust possibility agreement bargaining process neither party government definite yardstick determine government assistance invoke need integrated governmental machinery provide successive step mediation voluntary arbitration ultimately appropriate case ascertainment fact dispute report fact public machinery would facilitate expedite settlement dispute point number three broaden program social legislation alleviate cause worker insecurity june 11 1946 message veto case bill make comprehensive statement view concern relation say repeat solution difficulty find legislation deal directly labor relation also program design remove cause insecurity felt many worker industrial society connection example congress consider extension broaden social security system well housing comprehensive national health program provision fair minimum wage point number four appointment temporary joint commission inquire entire field relation recommend congress provide appointment temporary joint commission undertake broad study president congress management labor continue responsibility cooperate seek find solution problem therefore recommend commission compose follow twelve chosen congress member party house senate eight represent public management labor appoint president commission charge investigate make recommendation upon certain major subject among others first special unique problem nationwide strike vital industry affect public interest particular commission examine question settle prevent strike without endanger general democratic freedom upon proper solution problem may depend whole industrial future unite state paralyze effect nationwide strike industry transportation coal oil steel communication result national disaster able avoid disaster recent year use extraordinary war power power soon go place must create adequate system effective machinery vital field problem require careful study bold approach approach consistent preservation right people need press commission give early attention second best method procedure carry collective bargaining process include responsibility labor management negotiate freely fairly refrain strike lockouts possibility negotiation exhaust third underlying cause labor management dispute subject present investigation involve study others consider immediately commission recommendation submit congress near future recommend commission make first report include specific legislative recommendation later march 15 1947 restriction monopoly promotion private enterprise second major policy desire lay grow concentration economic power threat free competitive private enterprise 1941 temporary national economic committee complete comprehensive investigation working national economy committee study show despite half century law enforcement one gravest threat welfare lay increase concentration power hand small number giant organization war tendency toward economic concentration accelerate consequence find great extent ever whole industry dominate one large organization restrict production interest high profit thus reduce employment purchase power effort assure full opportunity free competition business vigorously enforce law much congress cooperate assist program strengthen enforce law regulate business practice enough enforcement must supplement positive measure aid new enterprises government assistance research program credit power design used promote growth new firm new industry assistance small business particularly important time thousand veterans potential business industrial leader begin career also give special attention decentralization industry development area housing third major policy also great importance national economy aggressive program encourage housing construction first federal program relieve veteran housing shortage announce february 1946 1946 one million family housing unit put construction unit already complete rate expansion construction broken record come year number dwell unit build approach surpass top construction year 1926 primary responsibility deliver housing reasonable price veteran afford rest private industry labor government continue expedite flow key building material limit nonresidential construction give financial support good measure stimulate rental housing new type housing construction receive special emphasis reach goal adequate housing people comprehensive housing legislation urgently require similar bill pass senate last year minimum legislation open way rebuild blight area city establish positive incentive investment billion dollar private capital rental housing project provide improvement housing rural area construction period half million unit public housing authorize single peacetime federal housing agency assure efficient use resource vast housing front fiscal affair fourth major policy balance budget prosperous period present one budget federal government balance prudent management public finance require begin process reduce public debt budget shall submit week small margin surplus budget message make recommendation accept result substantially large surplus applied debt retirement one recommendations congress take early action continue throughout next fiscal year war excise tax rate present law expire june 30 1947 expenditure relate war still high considerable sum require alleviate world famine suffer aid veteran continue peak level world situation large military expenditure require interest public debt certain cost irreducible reason practice stringent economy prepare budget hope congress cooperate program economy agriculture fifth major policy welfare farm population production food reach record height 1946 much tremendous grain crop readily sell abroad thus become threat domestic market next year american agriculture face danger world war early twenty nation fail maintain outlets new productive capacity agricultural plant fail provide mean protect farmer adjust acreage peacetime demand result remember well farm production stay demand price fell contrast industry price stay output decline farm surplus pile disaster follow must make sure meeting problem fail meet first world war present law give considerable stability farm price 1947 1948 2 year must utilize maintain develop market great productive power purpose law permit orderly transition war peace government plan support price design absorb great cost unlimited surplus highly productive agriculture must wait guarantee expire set stage permanent farm welfare farmer entitle fair income way find utilize new skill well practice expand market home abroad carry objective balance pattern peacetime production without either undue sacrifice farm people undue expense government health general welfare national resource none basic value health people year ago present congress view national health program congress act several recommendation health health mother child hospital construction urge congress complete work begin last year enact important recommendation program provide adequate medical care need charity basis payment make beneficiary program one administrative change would help greatly national program field health education welfare recommend establishment department welfare veteran fourteen million world war ii serviceman return civil life great majority find place citizens community nation tribute fiber serviceman flexibility economy adjustment make rapidly successfully two million veteran attending school acquire job skill financial assistance federal government thousand sick wound veteran daily receive best medical hospital care half million obtained loan government guarantee purchase home farm embark upon new business compensation pay almost two million case disability death three million continue mainlain national service life insurance policy almost seven million veteran aided unemployment allowance exclusive payment terminal leave pay program veteran war cost seven billion dollar year total federal budget complete veteran program ever conceive nation except minor adjustment believe program benefit veteran complete long run success program measure number veteran receive financial aid number dollar spend history judge u money spend contribution enable veteran make country consider additional legislation must criterion civil right recently witness country numerous attack upon constitutional right individual citizen result racial religious bigotry substantial segment people prevent exercise fully right participate election public official locally nationally freedom engage lawful calling deny fight crime heart every one u federal government fight carry department justice full extent power confer upon constitution withholds federal government major task preserve peace several state convince present legislation reach limit federal power protect civil right citizen therefore executive order establish president committee civil right study report whole problem civil right view make recommendation congress 1 executive order 9808 3 cfr p 590 natural resource responsibility promote general welfare people always consider natural resource country foundation life development great river system america major opportunity generation contribute increase national wealth program already well along push full vigor must advise congress rapidly become nation many mineral economic progress security country depend upon expand return mineral discovery upon improve method recovery federal government must part meet need foreign affair progress reach domestic goal closely related conduct foreign affair say maintain sound prosperous economy improve welfare people great mean world leadership united state fail home affect million throughout world fulfill responsibility people must make sure united state sound economically socially politically able help bring element peace country political stability economic advancement social progress peace treaty italy bulgaria rumania hungary finally prepared follow sign treaty next month paris submit senate ratification government regard treaty completely satisfactory whatever defect however convince good hope obtain agreement among principal wartime ally dispute delay would gravely jeopardize political stability country concern many year long month debate treaty make clear nation united state consent settlement expense principle regard vital endure peace make equally dear retreat isolationism policy forthcoming negotiation moscow german austrian treaty future conference japanese treaty delay arrive first peace settlement due partly difficulty reach agreement soviet union term settlement whatever difference may u soviet union however allow obscure fact basic interest nation lie early make peace people country may return free men woman essential task production reconstruction major concern u promotion collective security advancement individual security policy toward soviet union guide principle determine policy toward nation seek uphold principle international justice embody charter united nation must get peace settlement occupy power recognize independence austria withdraw troop german japanese leave doubt fear future must know national boundary resource reparation must pay without try manage internal affair insure country international relief displaced person united state proud part caring people reduce want ravage war aid nation restore national economy ship supply hungry people world since end war country combine however insofar admit displaced person concerned feel united state do part enter country since may 1946 fact executive agency reasonably possible limitation exist law establish quotas congressional assistance form new legislation need urge congress turn attention world problem effort find way whereby fulfill responsibilities thousand homeless suffer refugee faiths international trade world economic cooperation essential world political cooperation make good start economic cooperation international bank international monetary fund bank must take step reconstruction world trade continue strive international trade system free obstruction possible atomic energy united state take lead endeavor put atomic energy effective international control seek monopoly group nation ask safeguard sufficient insure nation able use power military purpose long government agree mean international control atomic energy shadow fear obscure bright prospect peaceful use enormous power accordance atomic energy act 1946 commission establish law assume full jurisdiction domestic atomic energy enterprise program commission course work close collaboration military service conformity wish congress fervent hope military significance atomic energy steadily decline look commission foster development atomic energy industrial use scientific medical research vigorous effective development peaceful us atomic energy rest hope new force may ultimately turn bless nation military policy 1946 army navy complete demobilization wartime force maintain force need national defense fulfill international obligation live world strength part nation still great deterrent aggression world stability destroy nation great responsibility neglect maintain mean discharge responsibility age unforeseen attack could come unprecedented speed must strong enough defeat thus forestall attack steady progress toward rational world order need large armed force progressively decline stabilize force american military strength must weaken hope fully realize system collective security united nation establish shall willing lead collective disarmament system become reality must allow become weak invite attack reason need arm force must able mobilize rapidly resource men material defense need arise army reduce officer men july 1 1947 half army use occupation duty abroad remainder employ home support overseas force navy support occupation troop europe far east fundamental mission support national interest wherever require unchanged navy include marine corps average officer men fiscal year 1948 encounter serious difficulty maintain force even reduce level occupation troop barely sufficient carry duty foreign policy require force home point reduction impracticable like army navy compose entirely volunteer spite liberal inducement basic need army meet voluntary enlistment war department advise unable make accurate forecast present time whether possible maintain strength army rely exclusively volunteer situation much clear week result campaign volunteer know war department make recommendation need extension selective service sufficient time enable congress take action prior expiration present law march 31st responsibility maintaining arm force strength necessary national safety rest congress development train citizen reserve also vital national security best accomplish universal training appoint advisory commission universal train study various plan train program expect recommendation commission benefit congress reach decision problem cost military establishment substantial one certain way cut cost time enhance national security establishment single department national defense shall communicate congress near future reference establishment single department national defense national security consist army navy air force rest much broad basis depend sound economy price wag prosperous agriculture satisfy productive worker competitive private enterprise free monopolistic repression continue industrial harmony production civil liberty human force create men woman strong moral fiber spiritual stamen high duty great responsibility attainment national security goal collective security mankind work spirit understand mutual respect fulfill solemn obligation rest upon u spirit american people set course world history maintain strengthen cherish ideal share great bounty people world faith citizen freedom democracy spread whole earth free men everywhere share devotion ideal let u patience job together may lord strengthen u faith may give u wisdom lead people world way peace