
 No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment, harmonious relations between management and wage earner, freedom from industrial strife, and the highest record of years of prosperity. In the foreign field there is peace, the good will which comes from mutual understanding, and the knowledge that the problems which a short time ago appeared so ominous are yielding to the touch of manifest friendship. The great wealth created by our enterprise and industry, and saved by our economy, has had the widest distribution among our own people, and has gone out in a steady stream to serve the charity and the business of the world. The requirements of existence have passed beyond the standard of necessity into the region of luxury. Enlarging production is consumed by an increasing demand at home and an expanding commerce abroad. The country can regard the present with satisfaction and anticipate the future with optimism.
 The main source of these unexampled blessings lies in the integrity and character of the American people. They have had great faith, which they have supplemented with mighty works. They have been able to put trust in each other and trust in their Government. Their candor in dealing with foreign governments has commanded respect and confidence. Yet these remarkable powers would have been exerted almost in vain without the constant cooperation and careful administration of the Federal Government.
 We have been coming into a period which may be fairly characterized as a conservation of our national resources. Wastefulness in public business and private enterprise has been displaced by constructive economy. This has been accomplished by bringing our domestic and foreign relations more and more under a reign of law. A rule of force has been giving way to a rule of reason. We have substituted for the vicious circle of increasing expenditures, increasing tax rates, and diminishing profits the charmed circle of diminishing expenditures, diminishing tax rates, and increasing profits.
 Four times we have made a drastic revision of our internal revenue system, abolishing many taxes and substantially reducing almost all others. Each time the resulting stimulation to business has so increased taxable incomes and profits that a surplus has been produced. One-third of the national debt has been paid, while much of the other two-thirds has been refunded at lower rates, and these savings of interest and constant economies have enabled us to repeat the satisfying process of more tax reductions. Under this sound and healthful encouragement the national income has increased nearly 50 per cent, until it is estimated to stand well over $90,000,000,000. It has been a method which has performed the seeming miracle of leaving a much greater percentage of earnings in the hands of the taxpayers 'with scarcely any diminution of the Government revenue. That is constructive economy in the highest degree. It is the corner stone of prosperity. It should not fail to be continued.
 This action began by the application of economy to public expenditure. If it is to be permanent, it must be made so by the repeated application of economy. There is no surplus on which to base further tax revision at this time. Last June the estimates showed a threatened deficit for the current fiscal year of $94,000,000. Under my direction the departments began saving all they could out of their present appropriations. The last tax reduction brought 'an encouraging improvement in business, beginning early in October, which will also increase our revenue. The combination of economy and good times now indicates a surplus of about $37,000,000. This is a margin of less than I percent on out, expenditures and makes it obvious that the Treasury is in no condition to undertake increases in expenditures to be made before June 30. It is necessary therefore during the present session to refrain from new appropriations for immediate outlay, or if such are absolutely required to provide for them by new revenue; otherwise, we shall reach the end of the year with the unthinkable result of an unbalanced budget. For the first time during my term of office we face that contingency. I am certain that the Congress would not pass and I should not feel warranted in approving legislation which would involve us in that financial disgrace.
 On the whole the finances of the Government are most satisfactory. Last year the national debt was reduced about $906,000,000. The refunding and retirement of the second and third Liberty loans have just been brought to a successful conclusion, which will save about $75,000,0W a year in interest. The unpaid balance has been arranged  in maturities convenient for carrying out our permanent debt-paying Program.
 The enormous savings made have not been at the expense of any legitimate public need. The Government plant has been kept up and many improvements are tinder way, while its service is fully manned and the general efficiency of operation has increased. We have been enabled to undertake many new enterprises. Among these are the adjusted compensation of the veterans of the World War, which is costing us $112,000,000 a year; amortizing our liability to the civil service retirement funds, $20,000,000; increase of expenditures for rivers and harbors including flood control, $43,000,000; public buildings, $47,000,000. In 1928 we spent $50,000,000 in the adjustment of war claims and alien property. These are examples of a large list of items.
 
 When we turn from our domestic affairs to our foreign relations, we likewise perceive peace and progress. The Sixth International Conference of American States was held at Havana last winter. It contributed to a better understanding and cooperation among the nations'. Eleven important conventions were signed and 71 resolutions passed. Pursuant to the plan then adopted, this Government has invited the other 20 nations of this hemisphere to it conference on conciliation and arbitration, which meets in Washington on December 10. All the nations have accepted and the expectation is justified that important progress will be made in methods for resolving international differences by means of arbitration.
 During the year we have signed 11 new arbitration treaties, and 22 more are tinder negotiation.
 
 When a destructive and bloody revolution lately broke out in Nicaragua, at the earnest and repeated entreaties of its Government I dispatched our Marine forces there to protect the lives and interests of our citizens. To compose the contending parties, I sent there Col. Henry L. Stimson, former Secretary of War and now Governor General of the Philippine Islands, who secured an agreement that warfare should cease, a national election should be held and peace should be restored. Both parties conscientiously carried out this agreement, with the exception of a few bandits who later mostly surrendered or left the country. President Diaz appointed Brig. Gen. Frank R. McCoy, United States Army, president of the election board, which included also one member of each political party.
 A free and fair election has been held and has worked out so successfully that both parties have joined in requesting like cooperation from this country at the election four years hence, to which I have refrained from making any commitments, although our country must be gratified at such an exhibition of success and appreciation  Nicaragua is regaining its prosperity and has taken a long step in the direction of peaceful self-government.
 
 The long-standing differences between Chile and Peru have been sufficiently composed so that diplomatic relations have been resumed by the exchange of ambassadors. Negotiations are hopefully proceeding as this is written for the final adjustment of the differences over their disputed territory.
 
 Our relations with Mexico are on a more satisfactory basis than at any time since their revolution. Many misunderstandings have been resolved and the most frank and friendly negotiations promise a final adjustment of all unsettled questions. It is exceedingly gratifying that Ambassador Morrow has been able to bring our two neighboring countries, which have so many interests in common, to a position of confidence in each other and of respect for mutual sovereign rights.
 
 The situation in China which a few months ago was so threatening as to call for the dispatch of a large additional force has, been much composed. The Nationalist Government has established itself over the country and promulgated a new organic law announcing a program intended to promote the political and economic welfare of the people. We have recognized this Government, encouraged its progress, and have negotiated a treaty restoring to China complete  tariff autonomy and guaranteeing our citizens against discriminations. Our trade in that quarter is increasing and our forces are being reduced.
 
 Pending before the Congress is a recommendation for the settlement of the Greek debt and the Austrian debt. both of these are comparatively small and our country can afford to be generous. The rehabilitation of these countries await& their settlement. There would also be advantages to our trade. We could scarcely afford to be the only nation that refuses the relief which Austria seeks. The Congress has already granted Austria a long-time moratorium, which it is understood will be waived and immediate payments begun on her debt on the same basis which we have extended to other countries.
 
 One of the most important treaties ever laid before the Senate of the United States will be that which the 15 nations recently signed at Paris, and to which 44 other nations have declared their intention to adhere, renouncing war as a national policy and agreeing to resort only to peaceful means for the adjustment of international differences. It is the most solemn declaration against war, the most positive adherence to peace, that it is possible' for sovereign nations to  make. It does not supersede our inalienable sovereign right and duty of national defense or undertake to commit us before the event to any mode of action which the Congress might decide to be wise. it ever the treaty should be broken. But it is a new standard in the world around which can rally the informed and enlightened opinion of nations to prevent their governments from being forced into hostile action by the temporary outbreak of international animosities. The observance of this covenant, so simple and so straightforward, promises more for the peace of the world than any other agreement ever negotiated among the nations.
 
 The first duty of our Government to its own citizens and foreigners within its borders is the preservation of order. Unless and until that duty is met a government is not even eligible for recognition among the family of nations. The advancement of world civilization likewise is dependent upon that order among the people of different countries which we term peace. To insure our citizens against the infringement of their legal rights at home and abroad, to preserve order, liberty, and peace by making the law supreme, we have an Army and a Navy.
 Both of these are organized for defensive purposes. Our Army could not be much reduced, but does not need to be increased. Such new housing and repairs as are necessary are tinder way and the 6-year program in aviation is being put into effect in both branches of our service.
 Our Navy, according to generally accepted standards, is deficient in cruisers. We have 10 comparatively new vessels, 22 that are old, and 8 to be built. It is evident that renewals and replacements must be provided. This matter was thoroughly canvassed at the last session of the Congress and does not need restatement. The bill before the Senate with the elimination of the time clause should be passed. We have no intention of competing with any other country. This building program is for necessary replacements and to meet our needs for defense.
 The cost of national defense is stupendous. It has increased $118,000,000 in the past four years. The estimated expenditure for 1930 is $668,000,000. While this is made up of many items it is, after all, mostly dependent upon numbers. Our defensive needs do not can for any increase in the number of men in the Army or the Navy. We have reached the limit of what we ought to expend for that purpose.
 I wish to repeat again for the benefit of the timid and the suspicious that this country is neither militaristic nor imperialistic. Many people at home and abroad, who constantly make this charge, are the same ones who are even more solicitous to have us extend assistance to foreign countries. When such assistance is granted, the inevitable result is that we have foreign interests. For us to refuse the customary support and protection of such interests would be in derogation of the sovereignty of this Nation. Our largest foreign interests are in the British Empire, France, and Italy. Because we are constantly solicitous for those interests, I doubt if anyone would suppose that those countries feel we harbor toward them any militaristic or imperialistic design. As for smaller countries, we certainly do not want any of them. We are more anxious than they are to have their sovereignty respected. Our entire influence is in behalf of their independence. Cuba stands as a witness to our adherence to this principle.
 The position of this Government relative to the limitation of armaments, the results already secured, and the developments up to the present time are so well known to the Congress that they do not require any restatement.
 
 The magnitude of our present system of veterans' relief is without precedent, and the results have been far-reaching. For years a service pension has been granted to the Grand Army and lately to the survivors of the Spanish-American War. At the time we entered the World War however, Congress departed from the usual pension system followed by our Gove2rnment. Eleven years have elapsed since our laws were first enacted, initiating a system of compensation, rehabilitation, hospitalization, and insurance for the disabled of the World War and their dependents. The administration 'of all the laws concerning relief has been a difficult task, but it can safely be stated that these measures have omitted nothing in their desire to deal generously and humanely. We should continue to foster this system and provide all the facilities necessary for adequate care. It is the conception of our Government that the pension roll is an honor roll. It should include all those who are justly entitled to its benefits, but exclude all others.
 Annual expenditures for all forms of veterans' relief now approximate $765,000,000, and are increasing from year to year. It is doubtful if the peak of expenditures will be reached even under present legislation for sonic time yet to come. Further amendments to the existing law will be suggested by the American Legion, the Veterans of Foreign Wars of the United States, the Disabled American Veterans of the World War, and other like organizations, and it may be necessary for administrative purposes, or in order to remove some existing inequalities in the present law, to make further changes. I am sure that such recommendations its may be submitted to the Congress will receive your careful consideration. But because of the vast expenditure now being made, each year, with every assurance that it will increase, and because of the great liberality of the existing law, the proposal of any additional legislation dealing with this subject should receive most searching scrutiny from the Congress.
 You are familiar with the suggestion that the various public agencies now dealing with matters of veterans' relief be consolidated in one Government department. Some advantages to this plan seem apparent, especially in the simplification of administration find in the opportunity of bringing about a greater uniformity in the application of veterans' relief. I recommend that a survey be made by the proper committees of Congress dealing with this subject, in order to determine whether legislation to secure this consolidation is desirable.
 
 The past year has been marked by notable though not uniform improvement in agriculture. The general purchasing power of farm products and the volume of production have advanced. This means not only further progress, in overcoming the price disparity into which agriculture was plunged in 1920-21, but also increased efficiency on the part of farmers and a well-grounded confidence in the future of agriculture.
 The livestock industry has attained the best balance for many years and is prospering conspicuously. Dairymen, beef producers, an poultrymen are receiving substantially larger returns than last year. Cotton, although lower in price than at this time last year, was produced in greater volume and the prospect for cotton incomes is favorable. But progress is never uniform in a vast and highly diversified agriculture or industry. Cash grains, hay, tobacco, and potatoes will bring somewhat smaller returns this year than last. Present indications are, however, that the gross farm income will be somewhat larger than in the crop year 1927-28, when the total was $12,253,000,000. The corresponding figure for 1926-27 was $12,127,000,000, and in 1925-26, $12,670,000,000. Still better results would have been secured this year had there not been an undue increase in the production of certain crops. This is particularly true of potatoes, which have sold at an unremunerative price, or at a loss, as a direct result of over-expansion of acreage.
 The present status of agriculture, although greatly improved over that of a few years ago, bespeaks the need of further improvemen4 which calls for determined effort of farmers themselves, encouraged and assisted by wise public policy. The Government has been, and must continue to be, alive to the needs of agriculture.
 In the past eight years more constructive legislation of direct benefit to agriculture has been adopted than during any other period. The Department of Agriculture has been broadened and reorganized to insure greater efficiency. The department is laying greater stress on the economic and business phases of agriculture. It is lending every possible assistance to cooperative marketing associations. Regulatory and research work have been segregated in order that each field may be served more effectively.
 I can not too strongly commend, in the field of fact finding, the research work of the Department of Agriculture and the State experiment stations. The department now receives annually $4,000,000 more for research than in 1921. In addition, the funds paid to the States for experimentation purposes under the Purnell Act constitute an annual increase in Federal payments to State agricultural experiment stations of $2,400,000 over the amount appropriated in 1921. The program of support for research may wisely be continued and expanded. Since 1921 we have appropriated nearly an additional $2,000,000 for extension work, and this sum is to be increased next year under authorization by the Capper-Ketcham Act.
 
 While these developments in fundamental research, regulation, and dissemination of agricultural information are of distinct hell) to agriculture, additional effort is needed. The surplus problem demands attention. As emphasized in my last message, the Government should assume no responsibility in normal times for crop surplus clearly due to overextended acreage. The Government should, however, provide reliable information as a guide to private effort; and in this connection fundamental research on prospective supply and demand, as a guide to production and marketing, should be encouraged. Expenditure of public funds to bring in more new land should have most searching scrutiny, so long as our farmers face unsatisfactory prices for crops and livestock produced on land already under cultivation.
 Every proper effort should be made to put land to uses for which it is adapted. The reforestation of land best suited for timber production is progressing and should be encouraged, and to this end the forest taxation inquiry was instituted to afford a practical guide for public policy. Improvement bas been made in grazing regulation in the forest reserves, not only to protect the ranges, but to preserve the soil from erosion. Similar action is urgently needed to protect other public lands which are now overgrazed and rapidly eroding.
 Temporary expedients, though sometimes capable of appeasing the demands of the moment, can not permanently solve the surplus problem and might seriously aggravate it. Hence putting the Government directly into business, subsidies, and price fixing, and the alluring promises of political action as a substitute for private initiative, should be avoided.
 The Government should aid in promoting orderly marketing and in handling surpluses clearly due to weather and seasonal conditions. As a beginning there should be created a Federal farm board consisting of able and experienced men empowered to advise producers' associations in establishing central agencies or stabilization corporations to handle surpluses, to seek wore economical means of merchandising, and to aid the producer in securing returns according to the a14 of his product. A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus.
 Agriculture has lagged behind industry in achieving that unity of effort which modern economic life demands. The cooperative movement, which is gradually building the needed organization, is in harmony with public interest and therefore merits public encouragement.
 
 Important phases of public policy related to agriculture lie within the sphere of the States. While successive reductions in Federal taxes have relieved most farmers of direct taxes to the National Government, State and local levies have become a serious burden. This problem needs immediate and thorough study with a view to correction at the earliest possible moment. It will have to be made largely by the States themselves.
 
 It is desirable that the Government continue its helpful attitude toward American business. The activities of the Department of Commerce have contributed largely to the present satisfactory position in our international trade, which has reached about $9,000,000,000 annually. There should be no slackening of effort in that direction. it is also important that the department's assistance to domestic commerce be continued. There is probably no way in which the Government can aid sound economic progress more effectively than by cooperation with our business men to reduce wastes in distribution.
 
 Continued progress in civil aviation is most gratifying. Demands for airplanes and motors have taxed both the industry and the licensing and inspection service of the Department of Commerce to their capacity. While the compulsory licensing provisions of the air commerce act apply only to equipment and personnel engaged in interstate and foreign commerce, a Federal license may be procured by anyone possessing the necessary qualifications. State legislation, local airport regulations, and insurance requirements make such a license practically indispensable. This results in uniformity of regulation and increased safety in operation, which are essential to aeronautical development. Over 17,000 young men and women have now applied for Federal air pilot's licenses or permits. More than 80 per cent of them applied during the past year.
 Our national airway system exceeds 14,000 miles in length and has 7,500 miles lighted for night operations. Provision has been made for lighting 4,000 miles more during the current fiscal year and equipping an equal mileage with radio facilities. Three-quarters of our people are now served by these routes. With the rapid growth of air mail, express, and passenger service, this new transportation medium is daily becoming a more important factor in commerce. It is noteworthy that this development has taken place without governmental subsidies. Commercial passenger flights operating on schedule have reached 13,000 miles per day.
 During the next fortnight this Nation will entertain the nations of the world in a celebration of the twenty-fifth anniversary of the first successful airplane flight. The credit for this epoch-making achievement belongs to a citizen of our own country, Orville Wright.
 
 I desire to repeat my recommendation of an earlier message, that Congress enact the legislation necessary to make permanent the Parcel Post Convention with Cuba, both as a facility to American commerce and as a measure of equity to Cuba in the one class of goods which that country can send here by parcel post without detriment to our own trade.
 
 When I attended the Pan American Conference at Havana, the President of Cuba showed me a marble statue made from the original memorial that was overturned by a storm after it was erected on the Cuban shore to the memory of the men who perished in the destruction of the battleship Maine. As a testimony of friendship and appreciation of the Cuban Government and people lie most generously offered to present this to the. United States, and I assured him of my pleasure in accepting it. There is no location in the White House for placing so large and heavy a structure, and I therefore urge the Congress to provide by law for some locality where it can be set up.
 
 In previous annual messages I have suggested the enactment of laws to promote railroad consolidation with the view of increasing the efficiency of transportation and lessening its cost to the public. While, consolidations can and should be made under the present law until it is changed, vet the provisions of the act of 1920 have not been found fully adequate to meet the needs of other methods of consolidation. Amendments designed to remedy these defects have been considered at length by the respective committees of Congress and a bill was reported out late in the last session which I understand has the approval in principle of the Interstate Commerce Commission. It is to be hoped that this legislation may be enacted at an early date.
 Experience has shown that the interstate commerce law requires definition and clarification in several other respects, some of which have been pointed out by the Interstate Commerce Commission in its annual reports to the Congress. It will promote the public interest to have the Congress give early consideration to the recommendations there made.
 
 The cost of maintaining the United States Government merchant fleet has been steadily reduced. We have established American flag lines in foreign trade where they had never before existed as a means of promoting commerce and as a naval auxiliary. There have been sold to private American capital for operation within the past few years 14 of these lines, which, under the encouragement of the recent legislation passed by the Congress, give promise of continued successful operation. Additional legislation from time to time may be necessary to promote future advancement under private control.
 Through the cooperation of the Post Office Department and the Shipping Board long-term contracts are being made with American steamship lines for carrying mail, which already promise the construction of 15 to 20 new vessels and the gradual reestablishment of the American merchant marine as a private enterprise. No action of the National Government has been so beneficial to our shipping. The cost is being absorbed to a considerable extent by the disposal of unprofitable lines operated by the Shipping Board, for which the new law has made a market. Meanwhile it should be our policy to maintain necessary strategic lines under the Government operation until they can be transferred to private capital.
 
 In my message last year I expressed the view that we should lend our encouragement for more good roads to all the principal points on this hemisphere South of the Rio Grande. My view has not changed.
 The Pan American Union has recently endorsed it. In some of the countries to the south a great deal of progress is being made in road building. In, Others engineering features are often exacting and financing difficult. As those countries enter upon programs for road building we should be ready to contribute from our abundant experience to make their task easier of accomplishment. I prefer not to go into civil life to accomplish this end. We already furnish military and naval advisers, and following this precedent we could draw competent men from these same sources and from the Department of Agriculture.
 We should provide our southern neighbors, if they request it, with such engineer advisers for the construction of roads and bridges. Private interests should look with favor upon all reasonable loans sought by these countries to open main lines of travel. Such assistance should be given especially to any project for a highway designed to connect all the countries on this hemisphere and thus facilitate, intercourse and closer relations among, them.
 
 The friendly relations and the extensive, commercial intercourse with the Western Hemisphere to the south of us are being further cemented by the establishment and extension of air-mail routes. We shall soon have one from Key West, Fla., over Cuba, Haiti, and Santo Domingo to San Juan, P. R., where it will connect with another route to Trinidad. There will be another route from Key West to the Canal Zone, where connection will be made with a route across the northern coast of South America to Paramaribo. This will give us a circle around the Caribbean under our own control.  Additional connections will be made at Colon with a route running down the west coast of South America as far as Conception, Chile, and with the French air mail at Paramaribo running down the eastern coast of South America. The air service already spans our continent, with laterals running to Mexico and Canada, and covering a daily flight of over 28,000 miles, with an average cargo of 15 000 pounds.
 
 Our river and harbor improvements are proceeding with vigor. In the past few years we have increased the appropriation for this regular work $28,000,000, besides what is to be expended on flood control. The total appropriation for this year was over $91,000,000. The Ohio River is almost ready for opening; work on the Missouri and other rivers is under way. In accordance with the Mississippi flood law Army engineers are making investigations and surveys on other streams throughout the country with a view to flood control, navigation, waterpower, and irrigation. Our barge lines are being operated under generous appropriations, and negotiations are developing relative to the St. Lawrence waterway. To secure the largest benefits from all these waterways joint rates must be established with the railroads, preferably by agreement, but otherwise as a result of congressional action.
 We have recently passed several river and harbor bills. The work ordered by the Congress not, yet completed, will cost about $243,000,000, besides the hundreds of millions to be spent on the Mississippi flood way. Until we can see our way out of this expense no further river and harbor legislation should be passed, as expenditures to put it into effect would be four or five years away.
 
 For many years the Federal Government has been committed to the wise policy of reclamation and irrigation. While it has met with some failures due to unwise selection of projects and lack of thorough soil surveys, so that they could not be placed on a sound business basis, on the whole the service has been of such incalculable benefit in so many States that no one would advocate its abandonment. The program to which we are already committed, providing for the construction of new projects authorized by Congress and the completion of old projects, will tax the resources of the reclamation fund over a period of years. The high cost of improving and equipping farms adds to the difficulty of securing settlers for vacant farms on federal projects.
 Readjustments authorized by the reclamation relief act of May 25, 1926, have given more favorable terms of repayment to settlers. These new financial arrangements and the general prosperity on irrigation projects have resulted in increased collections by the Department of the Interior of charges due the reclamation fund. Nevertheless, the demand for still smaller yearly payments on some projects continues. These conditions should have consideration in connection with any proposed new projects.
 
 For several years the Congress has considered the erection of a dam on the Colorado River for flood-control, irrigation, and domestic water purposes, all of which ma properly be considered as Government functions. There would be an incidental creation of water power which could be used for generating electricity. As private enterprise can very well fill this field, there is no need for the Government to go into it. It is unfortunate that the States interested in this water have been unable to agree among themselves. Nevertheless, any legislation should give every possible safeguard to the present and prospective rights of each of them.
 The Congress will have before it, the detailed report of a special board appointed to consider the engineering and economic feasibility of this project. From the short summary which I have seen of it, I judge they consider the engineering problems can be met at somewhat increased cost over previous estimates. They prefer the Black Canyon site. On the economic features they are not so clear and appear to base their conclusions on many conditions which can not be established with certainty. So far as I can judge, however, from the summary, their conclusions appear sufficiently favorable, so that I feel warranted in recommending a measure which will protect the rights of the States, discharge the necessary Government functions, and leave the electrical field to private. enterprise.
 
 The development of other methods of producing nitrates will probably render this plant less important for that purpose than formerly. But we have it, and I am told it still provides a practical method of making nitrates for national defense and farm fertilizers. By dividing the property into its two component parts of power and nitrate plants it would be possible to dispose of the power, reserving the right to any concern that wished to make nitrates to use any power that might be needed for that purpose. Such a disposition of the power plant can be made that will return in rental about $2,000,000 per year. If the Congress would giant the Secretary of War authority to lease the nitrate plant on such terms as would insure the largest production of nitrates, the entire property could begin to function. Such a division, I am aware, has never seemed to appeal to the Congress. I should also gladly approve a bill granting authority to lease the entire property for the production of nitrates.
 I wish to avoid building another dam at public expense. Future operators should provide For that themselves. But if they were to be required to repay the cost of such dam with tile prevailing commercial rates for interest, this difficulty will be considerably lessened. Nor do I think this property should be made a vehicle for putting the United States Government indiscriminately into the private and retail field of power distribution and nitrate sales.
 
 The practical application of economy to the resources of the country calls for conservation. This does not mean that every resource should not be developed to its full degree, but it means that none of them should be wasted. We have a conservation board working on our oil problem. This is of the utmost importance to the future well-being of our people in this age of oil-burning engines and tile general application of gasoline to transportation. The Secretary of the Interior should not be compelled to lease oil lands of the Osage Indians when the market is depressed and the future supply is in jeopardy.
 While the area of lands remaining in public ownership is small, compared with the vast area in private ownership, the natural resources of those in public ownership are of immense present and future value. This is particularly trite as to minerals and water power. The proper bureaus have been classifying these resources to the end that they may be conserved. Appropriate estimates are being submitted, in the Budget, for the further prosecution of this important work.
 
 The policy of restrictive immigration should be maintained. Authority should be granted the Secretary of Labor to give immediate preference to learned professions and experts essential to new industries. The reuniting of families should be expedited. Our immigration and naturalization laws might well be codified.
 
 In its economic life our country has rejected the long accepted law of a limitation of the wage fund, which led to pessimism and despair because it was the doctrine of perpetual poverty, and has substituted for it the American conception that the only limit to profits and wages is production, which is the doctrine of optimism and hope because it leads to prosperity. Here and there the councils of labor are still darkened by the theory that only by limiting individual production can there be any assurance of permanent employment for increasing numbers, but in general, management and wage earner alike have become emancipated from this doom and have entered a new era in industrial thought which has unleashed the productive capacity of the individual worker with an increasing scale of wages and profits, the end of which is not yet. The application of this theory accounts for our widening distribution of wealth. No discovery ever did more to increase the happiness and prosperity of the people.
 Since 1922 increasing production has increased wages in general 12.9 per cent, while in certain selected trades they have run as high as 34.9 per cent and 38 per cent. Even in the boot and shoe shops the increase is over 5 per cent and in woolen mills 8.4 per cent, although these industries have not prospered like others. As the rise in living costs in this period is negligible, these figures represent real wage increases.
 The cause of constructive economy requires that the Government should cooperate with private interests to eliminate the waste arising from industrial accidents. This item, with all that has been done to reduce it, still reaches enormous proportions with great suffering to the workman and great loss to the country.
 
 The Federal Government should continue its solicitous care for the 8,500,000 women wage earners and its efforts in behalf of public health, which is reducing infant mortality and improving the bodily and mental condition of our citizens.
 
 The most marked change made in the civil service of the Government in the past eight years relates to the increase in salaries. The Board of Actuaries on the retirement act shows by its report, that July 1, 1921 the average salary of the 330,047 employees subject to the act was $1,307, while on June 30, 1927, the average salary of the corresponding, 405,263 was $1,969. This was an increase in six years of nearly 53 per cent. On top of this was the generous increase made at the last session of the Congress generally applicable to Federal employees and another bill increasing the pay in certain branches of the Postal Service beyond the large increase which was made three years ago. This raised the average level from $1,969 to $2,092, making an increase in seven years of over 63 per cent. While it is well known that in the upper brackets the pay in the Federal service is much smaller than in private employment, in the lower brackets, ranging well up over $3,000, it is much higher. It is higher not only in actual money paid, but in privileges granted, a vacation of 30 actual working days, or 5 weeks each year, with additional time running in some departments as high as 30 days for sick leave and the generous provisions of the retirement act. No other body of public servants ever occupied such a fortunate position.
 
 Through the Bureau of Education of the Department of the Interior the Federal Government, acting in an informative and advisory capacity, has rendered valuable service. While this province belongs peculiarly to the States, yet the promotion of education and efficiency in educational methods is a general responsibility of the Federal Government. A survey of negro colleges and universities in the United States has just been completed by the Bureau of Education through funds provided by the institutions themselves and through private sources. The present status of negro higher education was determined and recommendations were made for its advancement. This was one of the numerous cooperative undertakings of the bureau. Following the invitation of the Association of Land Grant Colleges and Universities, he Bureau of Education now has under way the survey of agricultural colleges, authorized by Congress. The purpose of the survey is to ascertain the accomplishments, the status, and the future objectives of this type of educational training. It is now proposed to undertake a survey of secondary schools, which educators insist is timely and essential.
 
 We, have laid out a public building program for the District of Columbia and the country at large running into hundreds of millions of dollars. Three important structures and one annex are already, under way and one addition has been completed in the City of Washington. in the country sites have been acquired, many buildings are in course of construction, and some are already completed. Plans for all this work are being prepared in order that it may be carried forward as rapidly as possible. This is the greatest building program ever assumed by this Nation. It contemplates structures of utility and of beauty. When it reaches completion the people will be well served and the Federal city will be supplied with the most beautiful and stately public buildings which adorn any capital in the world.
 
 The administration of Indian affairs has been receiving intensive study for several years. The Department of the Interior has been able to provide better supervision of health, education, and industrial advancement of this native race through additional funds provided by the Congress. The present cooperative arrangement existing between the Bureau of Indian Affairs and the Public Health Service should be extended. The Government's responsibility to the American Indian has been acknowledged by annual increases in appropriations to fulfill its obligations to them and to hasten the time when Federal supervision of their affairs may be properly and safely terminated. The movement in Congress and in some of the State legislatures for extending responsibility in Indian affairs to States should be encouraged. A complete participation by the Indian in our economic life is the end to be desired.
 
 For 65 years now our negro population has been under the peculiar care and solicitude of the National Government. The progress which they have made in education and the professions, in wealth and in the arts of civilization, affords one of the most remarkable incidents in this period of world history. They have demonstrated their ability to partake of the advantages of our institutions and to benefit by a free and more and more independent existence. Whatever doubt there may have been of their capacity to assume, the status granted to them by the Constitution of this Union is being rapidly dissipated. Their cooperation in the life of the Nation is constantly enlarging.
 Exploiting the negro problem for political ends is being abandoned and their protection is being increased by those States in which their percentage of population is largest. Every encouragement should be extended for the development of the race. The colored people have been the victims of the crime of lynching, which has in late years somewhat decreased. Some parts of the South already have wholesome laws for its restraint and punishment. Their example might well be followed by other States, and by such immediate remedial legislation as the Federal Government can extend under the Constitution.
 
 Under the guidance of Governor General Stimson the economic and political conditions of the Philippine Islands have been raised to a standard never before surpassed. The cooperation between his administration and the people of the islands is complete and harmonious. It would be an advantage if relief from double taxation could be granted by the Congress to our citizens doing business in the islands.
 
 Due to the terrific storm that swept Porto Rico last September, the people of that island suffered large losses. The Red Cross and the War Department went to their rescue. The property loss is being, retrieved. Sugar, tobacco, citrus fruit, and coffee, all suffered damage. The first three can largely look after themselves. The coffee growers will need some assistance, which should be *extended strictly on a business basis, and only after most careful investigation. The people of Porto Rico are not asking for charity.
 
 It is desirable that all the legal activities of the Government be consolidated under the supervision of the Attorney General. In
 1870 it was felt necessary to create the Department of Justice for this purpose. During the intervening period, either through legislation creating law officers or departmental action, additional legal positions not under the supervision of the Attorney General have been provided until there are now over 900. Such a condition is as harmful to the interest of the Government now as it was in 1870, and should be corrected by appropriate legislation.
 
 In order to prosecute the oil cases, I suggested and the Congress enacted a law providing for the appointment of two special counsel. They have pursued their work with signal ability, recovering all the leased lands besides nearly $30,000,000 in money, and nearly $17,000,000 in other property. They find themselves hampered by a statute, which the Attorney General construes as applying to them, prohibiting their appearing for private clients before any department. For this reason, one has been compelled to resign. No good result is secured by the application of this rule to these counsel, and as Mr. Roberts has consented to take reappointment if the rule is abrogated I recommend the passage of an amendment to the law creating their office exempting them from the general rule against taking other cases involving the Government.
 
 The country has duly adopted the eighteenth amendment. Those who object to it have the right to advocate its modification or repeal. Meantime) it is binding upon the National and State Governments and all our inhabitants. The Federal enforcement bureau is making every effort to prevent violations, especially through smuggling, manufacture, and transportation, and to prosecute generally all violations for which it can secure evidence. It is bound to continue this policy. Under the terms of the Constitution, however, the obligation is equally on the States to exercise the power which they have through the executive, legislative. judicial, and police branches of their governments in behalf of enforcement. The Federal Government is doing and will continue to do all it can in this direction and is entitled to7the active cooperation of the States.
 
 The country is in the midst of an era of prosperity more extensive and of peace more permanent than it has ever before experienced. But, having reached this position, we should not fail to comprehend that it can easily be lost. It needs more effort for its support than the less exalted places of the world. We shall not be permitted to take our case, but shall continue to be required to spend our days in unremitting toil. The actions of the Government must command the confidence of the country. Without this, our prosperity would be lost. We must extend to other countries the largest measure of generosity, moderation, and patience. In addition to dealing justly, we can well afford to walk humbly.
 The end of government is to keep open the opportunity for a more abundant life. Peace and prosperity are not finalities; they are only methods. It is too easy under their influence for a nation to become selfish and degenerate. This test has come to the United States. Our country has been provided with the resources with which it can enlarge its intellectual, moral, and spiritual life. The issue is in the hands of the people. Our faith in man and God is the justification for the belief in our continuing success.
No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment, harmonious relations between management and wage earner, freedom from industrial strife, and the highest record of years of prosperity. In the foreign field there is peace, the good will which comes from mutual understanding, and the knowledge that the problems which a short time ago appeared so ominous are yielding to the touch of manifest friendship. The great wealth created by our enterprise and industry, and saved by our economy, has had the widest distribution among our own people, and has gone out in a steady stream to serve the charity and the business of the world. The requirements of existence have passed beyond the standard of necessity into the region of luxury. Enlarging production is consumed by an increasing demand at home and an expanding commerce abroad. The country can regard the present with satisfaction and anticipate the future with optimism. The main source of these unexampled blessings lies in the integrity and character of the American people. They have had great faith, which they have supplemented with mighty works. They have been able to put trust in each other and trust in their Government. Their candor in dealing with foreign governments has commanded respect and confidence. Yet these remarkable powers would have been exerted almost in vain without the constant cooperation and careful administration of the Federal Government. We have been coming into a period which may be fairly characterized as a conservation of our national resources. Wastefulness in public business and private enterprise has been displaced by constructive economy. This has been accomplished by bringing our domestic and foreign relations more and more under a reign of law. A rule of force has been giving way to a rule of reason. We have substituted for the vicious circle of increasing expenditures, increasing tax rates, and diminishing profits the charmed circle of diminishing expenditures, diminishing tax rates, and increasing profits. Four times we have made a drastic revision of our internal revenue system, abolishing many taxes and substantially reducing almost all others. Each time the resulting stimulation to business has so increased taxable incomes and profits that a surplus has been produced. One-third of the national debt has been paid, while much of the other two-thirds has been refunded at lower rates, and these savings of interest and constant economies have enabled us to repeat the satisfying process of more tax reductions. Under this sound and healthful encouragement the national income has increased nearly 50 per cent, until it is estimated to stand well over $90,000,000,000. It has been a method which has performed the seeming miracle of leaving a much greater percentage of earnings in the hands of the taxpayers 'with scarcely any diminution of the Government revenue. That is constructive economy in the highest degree. It is the corner stone of prosperity. It should not fail to be continued. This action began by the application of economy to public expenditure. If it is to be permanent, it must be made so by the repeated application of economy. There is no surplus on which to base further tax revision at this time. Last June the estimates showed a threatened deficit for the current fiscal year of $94,000,000. Under my direction the departments began saving all they could out of their present appropriations. The last tax reduction brought 'an encouraging improvement in business, beginning early in October, which will also increase our revenue. The combination of economy and good times now indicates a surplus of about $37,000,000. This is a margin of less than I percent on out, expenditures and makes it obvious that the Treasury is in no condition to undertake increases in expenditures to be made before June 30. It is necessary therefore during the present session to refrain from new appropriations for immediate outlay, or if such are absolutely required to provide for them by new revenue; otherwise, we shall reach the end of the year with the unthinkable result of an unbalanced budget. For the first time during my term of office we face that contingency. I am certain that the Congress would not pass and I should not feel warranted in approving legislation which would involve us in that financial disgrace. On the whole the finances of the Government are most satisfactory. Last year the national debt was reduced about $906,000,000. The refunding and retirement of the second and third Liberty loans have just been brought to a successful conclusion, which will save about $75,000,0W a year in interest. The unpaid balance has been arranged in maturities convenient for carrying out our permanent debt-paying Program. The enormous savings made have not been at the expense of any legitimate public need. The Government plant has been kept up and many improvements are tinder way, while its service is fully manned and the general efficiency of operation has increased. We have been enabled to undertake many new enterprises. Among these are the adjusted compensation of the veterans of the World War, which is costing us $112,000,000 a year; amortizing our liability to the civil service retirement funds, $20,000,000; increase of expenditures for rivers and harbors including flood control, $43,000,000; public buildings, $47,000,000. In 1928 we spent $50,000,000 in the adjustment of war claims and alien property. These are examples of a large list of items. When we turn from our domestic affairs to our foreign relations, we likewise perceive peace and progress. The Sixth International Conference of American States was held at Havana last winter. It contributed to a better understanding and cooperation among the nations'. Eleven important conventions were signed and 71 resolutions passed. Pursuant to the plan then adopted, this Government has invited the other 20 nations of this hemisphere to it conference on conciliation and arbitration, which meets in Washington on December 10. All the nations have accepted and the expectation is justified that important progress will be made in methods for resolving international differences by means of arbitration. During the year we have signed 11 new arbitration treaties, and 22 more are tinder negotiation. When a destructive and bloody revolution lately broke out in Nicaragua, at the earnest and repeated entreaties of its Government I dispatched our Marine forces there to protect the lives and interests of our citizens. To compose the contending parties, I sent there Col. Henry L. Stimson, former Secretary of War and now Governor General of the Philippine Islands, who secured an agreement that warfare should cease, a national election should be held and peace should be restored. Both parties conscientiously carried out this agreement, with the exception of a few bandits who later mostly surrendered or left the country. President Diaz appointed Brig. Gen. Frank R. McCoy, United States Army, president of the election board, which included also one member of each political party. A free and fair election has been held and has worked out so successfully that both parties have joined in requesting like cooperation from this country at the election four years hence, to which I have refrained from making any commitments, although our country must be gratified at such an exhibition of success and appreciation Nicaragua is regaining its prosperity and has taken a long step in the direction of peaceful self-government. The long-standing differences between Chile and Peru have been sufficiently composed so that diplomatic relations have been resumed by the exchange of ambassadors. Negotiations are hopefully proceeding as this is written for the final adjustment of the differences over their disputed territory. Our relations with Mexico are on a more satisfactory basis than at any time since their revolution. Many misunderstandings have been resolved and the most frank and friendly negotiations promise a final adjustment of all unsettled questions. It is exceedingly gratifying that Ambassador Morrow has been able to bring our two neighboring countries, which have so many interests in common, to a position of confidence in each other and of respect for mutual sovereign rights. The situation in China which a few months ago was so threatening as to call for the dispatch of a large additional force has, been much composed. The Nationalist Government has established itself over the country and promulgated a new organic law announcing a program intended to promote the political and economic welfare of the people. We have recognized this Government, encouraged its progress, and have negotiated a treaty restoring to China complete tariff autonomy and guaranteeing our citizens against discriminations. Our trade in that quarter is increasing and our forces are being reduced. Pending before the Congress is a recommendation for the settlement of the Greek debt and the Austrian debt. both of these are comparatively small and our country can afford to be generous. The rehabilitation of these countries await& their settlement. There would also be advantages to our trade. We could scarcely afford to be the only nation that refuses the relief which Austria seeks. The Congress has already granted Austria a long-time moratorium, which it is understood will be waived and immediate payments begun on her debt on the same basis which we have extended to other countries. One of the most important treaties ever laid before the Senate of the United States will be that which the 15 nations recently signed at Paris, and to which 44 other nations have declared their intention to adhere, renouncing war as a national policy and agreeing to resort only to peaceful means for the adjustment of international differences. It is the most solemn declaration against war, the most positive adherence to peace, that it is possible' for sovereign nations to make. It does not supersede our inalienable sovereign right and duty of national defense or undertake to commit us before the event to any mode of action which the Congress might decide to be wise. it ever the treaty should be broken. But it is a new standard in the world around which can rally the informed and enlightened opinion of nations to prevent their governments from being forced into hostile action by the temporary outbreak of international animosities. The observance of this covenant, so simple and so straightforward, promises more for the peace of the world than any other agreement ever negotiated among the nations. The first duty of our Government to its own citizens and foreigners within its borders is the preservation of order. Unless and until that duty is met a government is not even eligible for recognition among the family of nations. The advancement of world civilization likewise is dependent upon that order among the people of different countries which we term peace. To insure our citizens against the infringement of their legal rights at home and abroad, to preserve order, liberty, and peace by making the law supreme, we have an Army and a Navy. Both of these are organized for defensive purposes. Our Army could not be much reduced, but does not need to be increased. Such new housing and repairs as are necessary are tinder way and the 6-year program in aviation is being put into effect in both branches of our service. Our Navy, according to generally accepted standards, is deficient in cruisers. We have 10 comparatively new vessels, 22 that are old, and 8 to be built. It is evident that renewals and replacements must be provided. This matter was thoroughly canvassed at the last session of the Congress and does not need restatement. The bill before the Senate with the elimination of the time clause should be passed. We have no intention of competing with any other country. This building program is for necessary replacements and to meet our needs for defense. The cost of national defense is stupendous. It has increased $118,000,000 in the past four years. The estimated expenditure for 1930 is $668,000,000. While this is made up of many items it is, after all, mostly dependent upon numbers. Our defensive needs do not can for any increase in the number of men in the Army or the Navy. We have reached the limit of what we ought to expend for that purpose. I wish to repeat again for the benefit of the timid and the suspicious that this country is neither militaristic nor imperialistic. Many people at home and abroad, who constantly make this charge, are the same ones who are even more solicitous to have us extend assistance to foreign countries. When such assistance is granted, the inevitable result is that we have foreign interests. For us to refuse the customary support and protection of such interests would be in derogation of the sovereignty of this Nation. Our largest foreign interests are in the British Empire, France, and Italy. Because we are constantly solicitous for those interests, I doubt if anyone would suppose that those countries feel we harbor toward them any militaristic or imperialistic design. As for smaller countries, we certainly do not want any of them. We are more anxious than they are to have their sovereignty respected. Our entire influence is in behalf of their independence. Cuba stands as a witness to our adherence to this principle. The position of this Government relative to the limitation of armaments, the results already secured, and the developments up to the present time are so well known to the Congress that they do not require any restatement. The magnitude of our present system of veterans' relief is without precedent, and the results have been far-reaching. For years a service pension has been granted to the Grand Army and lately to the survivors of the Spanish-American War. At the time we entered the World War however, Congress departed from the usual pension system followed by our Gove2rnment. Eleven years have elapsed since our laws were first enacted, initiating a system of compensation, rehabilitation, hospitalization, and insurance for the disabled of the World War and their dependents. The administration 'of all the laws concerning relief has been a difficult task, but it can safely be stated that these measures have omitted nothing in their desire to deal generously and humanely. We should continue to foster this system and provide all the facilities necessary for adequate care. It is the conception of our Government that the pension roll is an honor roll. It should include all those who are justly entitled to its benefits, but exclude all others. Annual expenditures for all forms of veterans' relief now approximate $765,000,000, and are increasing from year to year. It is doubtful if the peak of expenditures will be reached even under present legislation for sonic time yet to come. Further amendments to the existing law will be suggested by the American Legion, the Veterans of Foreign Wars of the United States, the Disabled American Veterans of the World War, and other like organizations, and it may be necessary for administrative purposes, or in order to remove some existing inequalities in the present law, to make further changes. I am sure that such recommendations its may be submitted to the Congress will receive your careful consideration. But because of the vast expenditure now being made, each year, with every assurance that it will increase, and because of the great liberality of the existing law, the proposal of any additional legislation dealing with this subject should receive most searching scrutiny from the Congress. You are familiar with the suggestion that the various public agencies now dealing with matters of veterans' relief be consolidated in one Government department. Some advantages to this plan seem apparent, especially in the simplification of administration find in the opportunity of bringing about a greater uniformity in the application of veterans' relief. I recommend that a survey be made by the proper committees of Congress dealing with this subject, in order to determine whether legislation to secure this consolidation is desirable. The past year has been marked by notable though not uniform improvement in agriculture. The general purchasing power of farm products and the volume of production have advanced. This means not only further progress, in overcoming the price disparity into which agriculture was plunged in 1920-21, but also increased efficiency on the part of farmers and a well-grounded confidence in the future of agriculture. The livestock industry has attained the best balance for many years and is prospering conspicuously. Dairymen, beef producers, an poultrymen are receiving substantially larger returns than last year. Cotton, although lower in price than at this time last year, was produced in greater volume and the prospect for cotton incomes is favorable. But progress is never uniform in a vast and highly diversified agriculture or industry. Cash grains, hay, tobacco, and potatoes will bring somewhat smaller returns this year than last. Present indications are, however, that the gross farm income will be somewhat larger than in the crop year 1927-28, when the total was $12,253,000,000. The corresponding figure for 1926-27 was $12,127,000,000, and in 1925-26, $12,670,000,000. Still better results would have been secured this year had there not been an undue increase in the production of certain crops. This is particularly true of potatoes, which have sold at an unremunerative price, or at a loss, as a direct result of over-expansion of acreage. The present status of agriculture, although greatly improved over that of a few years ago, bespeaks the need of further improvemen4 which calls for determined effort of farmers themselves, encouraged and assisted by wise public policy. The Government has been, and must continue to be, alive to the needs of agriculture. In the past eight years more constructive legislation of direct benefit to agriculture has been adopted than during any other period. The Department of Agriculture has been broadened and reorganized to insure greater efficiency. The department is laying greater stress on the economic and business phases of agriculture. It is lending every possible assistance to cooperative marketing associations. Regulatory and research work have been segregated in order that each field may be served more effectively. I can not too strongly commend, in the field of fact finding, the research work of the Department of Agriculture and the State experiment stations. The department now receives annually $4,000,000 more for research than in 1921. In addition, the funds paid to the States for experimentation purposes under the Purnell Act constitute an annual increase in Federal payments to State agricultural experiment stations of $2,400,000 over the amount appropriated in 1921. The program of support for research may wisely be continued and expanded. Since 1921 we have appropriated nearly an additional $2,000,000 for extension work, and this sum is to be increased next year under authorization by the Capper-Ketcham Act. While these developments in fundamental research, regulation, and dissemination of agricultural information are of distinct hell) to agriculture, additional effort is needed. The surplus problem demands attention. As emphasized in my last message, the Government should assume no responsibility in normal times for crop surplus clearly due to overextended acreage. The Government should, however, provide reliable information as a guide to private effort; and in this connection fundamental research on prospective supply and demand, as a guide to production and marketing, should be encouraged. Expenditure of public funds to bring in more new land should have most searching scrutiny, so long as our farmers face unsatisfactory prices for crops and livestock produced on land already under cultivation. Every proper effort should be made to put land to uses for which it is adapted. The reforestation of land best suited for timber production is progressing and should be encouraged, and to this end the forest taxation inquiry was instituted to afford a practical guide for public policy. Improvement bas been made in grazing regulation in the forest reserves, not only to protect the ranges, but to preserve the soil from erosion. Similar action is urgently needed to protect other public lands which are now overgrazed and rapidly eroding. Temporary expedients, though sometimes capable of appeasing the demands of the moment, can not permanently solve the surplus problem and might seriously aggravate it. Hence putting the Government directly into business, subsidies, and price fixing, and the alluring promises of political action as a substitute for private initiative, should be avoided. The Government should aid in promoting orderly marketing and in handling surpluses clearly due to weather and seasonal conditions. As a beginning there should be created a Federal farm board consisting of able and experienced men empowered to advise producers' associations in establishing central agencies or stabilization corporations to handle surpluses, to seek wore economical means of merchandising, and to aid the producer in securing returns according to the a14 of his product. A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus. Agriculture has lagged behind industry in achieving that unity of effort which modern economic life demands. The cooperative movement, which is gradually building the needed organization, is in harmony with public interest and therefore merits public encouragement. Important phases of public policy related to agriculture lie within the sphere of the States. While successive reductions in Federal taxes have relieved most farmers of direct taxes to the National Government, State and local levies have become a serious burden. This problem needs immediate and thorough study with a view to correction at the earliest possible moment. It will have to be made largely by the States themselves. It is desirable that the Government continue its helpful attitude toward American business. The activities of the Department of Commerce have contributed largely to the present satisfactory position in our international trade, which has reached about $9,000,000,000 annually. There should be no slackening of effort in that direction. it is also important that the department's assistance to domestic commerce be continued. There is probably no way in which the Government can aid sound economic progress more effectively than by cooperation with our business men to reduce wastes in distribution. Continued progress in civil aviation is most gratifying. Demands for airplanes and motors have taxed both the industry and the licensing and inspection service of the Department of Commerce to their capacity. While the compulsory licensing provisions of the air commerce act apply only to equipment and personnel engaged in interstate and foreign commerce, a Federal license may be procured by anyone possessing the necessary qualifications. State legislation, local airport regulations, and insurance requirements make such a license practically indispensable. This results in uniformity of regulation and increased safety in operation, which are essential to aeronautical development. Over 17,000 young men and women have now applied for Federal air pilot's licenses or permits. More than 80 per cent of them applied during the past year. Our national airway system exceeds 14,000 miles in length and has 7,500 miles lighted for night operations. Provision has been made for lighting 4,000 miles more during the current fiscal year and equipping an equal mileage with radio facilities. Three-quarters of our people are now served by these routes. With the rapid growth of air mail, express, and passenger service, this new transportation medium is daily becoming a more important factor in commerce. It is noteworthy that this development has taken place without governmental subsidies. Commercial passenger flights operating on schedule have reached 13,000 miles per day. During the next fortnight this Nation will entertain the nations of the world in a celebration of the twenty-fifth anniversary of the first successful airplane flight. The credit for this epoch-making achievement belongs to a citizen of our own country, Orville Wright. I desire to repeat my recommendation of an earlier message, that Congress enact the legislation necessary to make permanent the Parcel Post Convention with Cuba, both as a facility to American commerce and as a measure of equity to Cuba in the one class of goods which that country can send here by parcel post without detriment to our own trade. When I attended the Pan American Conference at Havana, the President of Cuba showed me a marble statue made from the original memorial that was overturned by a storm after it was erected on the Cuban shore to the memory of the men who perished in the destruction of the battleship Maine. As a testimony of friendship and appreciation of the Cuban Government and people lie most generously offered to present this to the. United States, and I assured him of my pleasure in accepting it. There is no location in the White House for placing so large and heavy a structure, and I therefore urge the Congress to provide by law for some locality where it can be set up. In previous annual messages I have suggested the enactment of laws to promote railroad consolidation with the view of increasing the efficiency of transportation and lessening its cost to the public. While, consolidations can and should be made under the present law until it is changed, vet the provisions of the act of 1920 have not been found fully adequate to meet the needs of other methods of consolidation. Amendments designed to remedy these defects have been considered at length by the respective committees of Congress and a bill was reported out late in the last session which I understand has the approval in principle of the Interstate Commerce Commission. It is to be hoped that this legislation may be enacted at an early date. Experience has shown that the interstate commerce law requires definition and clarification in several other respects, some of which have been pointed out by the Interstate Commerce Commission in its annual reports to the Congress. It will promote the public interest to have the Congress give early consideration to the recommendations there made. The cost of maintaining the United States Government merchant fleet has been steadily reduced. We have established American flag lines in foreign trade where they had never before existed as a means of promoting commerce and as a naval auxiliary. There have been sold to private American capital for operation within the past few years 14 of these lines, which, under the encouragement of the recent legislation passed by the Congress, give promise of continued successful operation. Additional legislation from time to time may be necessary to promote future advancement under private control. Through the cooperation of the Post Office Department and the Shipping Board long-term contracts are being made with American steamship lines for carrying mail, which already promise the construction of 15 to 20 new vessels and the gradual reestablishment of the American merchant marine as a private enterprise. No action of the National Government has been so beneficial to our shipping. The cost is being absorbed to a considerable extent by the disposal of unprofitable lines operated by the Shipping Board, for which the new law has made a market. Meanwhile it should be our policy to maintain necessary strategic lines under the Government operation until they can be transferred to private capital. In my message last year I expressed the view that we should lend our encouragement for more good roads to all the principal points on this hemisphere South of the Rio Grande. My view has not changed. The Pan American Union has recently endorsed it. In some of the countries to the south a great deal of progress is being made in road building. In, Others engineering features are often exacting and financing difficult. As those countries enter upon programs for road building we should be ready to contribute from our abundant experience to make their task easier of accomplishment. I prefer not to go into civil life to accomplish this end. We already furnish military and naval advisers, and following this precedent we could draw competent men from these same sources and from the Department of Agriculture. We should provide our southern neighbors, if they request it, with such engineer advisers for the construction of roads and bridges. Private interests should look with favor upon all reasonable loans sought by these countries to open main lines of travel. Such assistance should be given especially to any project for a highway designed to connect all the countries on this hemisphere and thus facilitate, intercourse and closer relations among, them. The friendly relations and the extensive, commercial intercourse with the Western Hemisphere to the south of us are being further cemented by the establishment and extension of air-mail routes. We shall soon have one from Key West, Fla., over Cuba, Haiti, and Santo Domingo to San Juan, P. R., where it will connect with another route to Trinidad. There will be another route from Key West to the Canal Zone, where connection will be made with a route across the northern coast of South America to Paramaribo. This will give us a circle around the Caribbean under our own control. Additional connections will be made at Colon with a route running down the west coast of South America as far as Conception, Chile, and with the French air mail at Paramaribo running down the eastern coast of South America. The air service already spans our continent, with laterals running to Mexico and Canada, and covering a daily flight of over 28,000 miles, with an average cargo of 15 000 pounds. Our river and harbor improvements are proceeding with vigor. In the past few years we have increased the appropriation for this regular work $28,000,000, besides what is to be expended on flood control. The total appropriation for this year was over $91,000,000. The Ohio River is almost ready for opening; work on the Missouri and other rivers is under way. In accordance with the Mississippi flood law Army engineers are making investigations and surveys on other streams throughout the country with a view to flood control, navigation, waterpower, and irrigation. Our barge lines are being operated under generous appropriations, and negotiations are developing relative to the St. Lawrence waterway. To secure the largest benefits from all these waterways joint rates must be established with the railroads, preferably by agreement, but otherwise as a result of congressional action. We have recently passed several river and harbor bills. The work ordered by the Congress not, yet completed, will cost about $243,000,000, besides the hundreds of millions to be spent on the Mississippi flood way. Until we can see our way out of this expense no further river and harbor legislation should be passed, as expenditures to put it into effect would be four or five years away. For many years the Federal Government has been committed to the wise policy of reclamation and irrigation. While it has met with some failures due to unwise selection of projects and lack of thorough soil surveys, so that they could not be placed on a sound business basis, on the whole the service has been of such incalculable benefit in so many States that no one would advocate its abandonment. The program to which we are already committed, providing for the construction of new projects authorized by Congress and the completion of old projects, will tax the resources of the reclamation fund over a period of years. The high cost of improving and equipping farms adds to the difficulty of securing settlers for vacant farms on federal projects. Readjustments authorized by the reclamation relief act of May 25, 1926, have given more favorable terms of repayment to settlers. These new financial arrangements and the general prosperity on irrigation projects have resulted in increased collections by the Department of the Interior of charges due the reclamation fund. Nevertheless, the demand for still smaller yearly payments on some projects continues. These conditions should have consideration in connection with any proposed new projects. For several years the Congress has considered the erection of a dam on the Colorado River for flood-control, irrigation, and domestic water purposes, all of which ma properly be considered as Government functions. There would be an incidental creation of water power which could be used for generating electricity. As private enterprise can very well fill this field, there is no need for the Government to go into it. It is unfortunate that the States interested in this water have been unable to agree among themselves. Nevertheless, any legislation should give every possible safeguard to the present and prospective rights of each of them. The Congress will have before it, the detailed report of a special board appointed to consider the engineering and economic feasibility of this project. From the short summary which I have seen of it, I judge they consider the engineering problems can be met at somewhat increased cost over previous estimates. They prefer the Black Canyon site. On the economic features they are not so clear and appear to base their conclusions on many conditions which can not be established with certainty. So far as I can judge, however, from the summary, their conclusions appear sufficiently favorable, so that I feel warranted in recommending a measure which will protect the rights of the States, discharge the necessary Government functions, and leave the electrical field to private. enterprise. The development of other methods of producing nitrates will probably render this plant less important for that purpose than formerly. But we have it, and I am told it still provides a practical method of making nitrates for national defense and farm fertilizers. By dividing the property into its two component parts of power and nitrate plants it would be possible to dispose of the power, reserving the right to any concern that wished to make nitrates to use any power that might be needed for that purpose. Such a disposition of the power plant can be made that will return in rental about $2,000,000 per year. If the Congress would giant the Secretary of War authority to lease the nitrate plant on such terms as would insure the largest production of nitrates, the entire property could begin to function. Such a division, I am aware, has never seemed to appeal to the Congress. I should also gladly approve a bill granting authority to lease the entire property for the production of nitrates. I wish to avoid building another dam at public expense. Future operators should provide For that themselves. But if they were to be required to repay the cost of such dam with tile prevailing commercial rates for interest, this difficulty will be considerably lessened. Nor do I think this property should be made a vehicle for putting the United States Government indiscriminately into the private and retail field of power distribution and nitrate sales. The practical application of economy to the resources of the country calls for conservation. This does not mean that every resource should not be developed to its full degree, but it means that none of them should be wasted. We have a conservation board working on our oil problem. This is of the utmost importance to the future well-being of our people in this age of oil-burning engines and tile general application of gasoline to transportation. The Secretary of the Interior should not be compelled to lease oil lands of the Osage Indians when the market is depressed and the future supply is in jeopardy. While the area of lands remaining in public ownership is small, compared with the vast area in private ownership, the natural resources of those in public ownership are of immense present and future value. This is particularly trite as to minerals and water power. The proper bureaus have been classifying these resources to the end that they may be conserved. Appropriate estimates are being submitted, in the Budget, for the further prosecution of this important work. The policy of restrictive immigration should be maintained. Authority should be granted the Secretary of Labor to give immediate preference to learned professions and experts essential to new industries. The reuniting of families should be expedited. Our immigration and naturalization laws might well be codified. In its economic life our country has rejected the long accepted law of a limitation of the wage fund, which led to pessimism and despair because it was the doctrine of perpetual poverty, and has substituted for it the American conception that the only limit to profits and wages is production, which is the doctrine of optimism and hope because it leads to prosperity. Here and there the councils of labor are still darkened by the theory that only by limiting individual production can there be any assurance of permanent employment for increasing numbers, but in general, management and wage earner alike have become emancipated from this doom and have entered a new era in industrial thought which has unleashed the productive capacity of the individual worker with an increasing scale of wages and profits, the end of which is not yet. The application of this theory accounts for our widening distribution of wealth. No discovery ever did more to increase the happiness and prosperity of the people. Since 1922 increasing production has increased wages in general 12.9 per cent, while in certain selected trades they have run as high as 34.9 per cent and 38 per cent. Even in the boot and shoe shops the increase is over 5 per cent and in woolen mills 8.4 per cent, although these industries have not prospered like others. As the rise in living costs in this period is negligible, these figures represent real wage increases. The because of constructive economy requires that the Government should cooperate with private interests to eliminate the waste arising from industrial accidents. This item, with all that has been done to reduce it, still reaches enormous proportions with great suffering to the workman and great loss to the country. The Federal Government should continue its solicitous care for the 8,500,000 women wage earners and its efforts in behalf of public health, which is reducing infant mortality and improving the bodily and mental condition of our citizens. The most marked change made in the civil service of the Government in the past eight years relates to the increase in salaries. The Board of Actuaries on the retirement act shows by its report, that July 1, 1921 the average salary of the 330,047 employees subject to the act was $1,307, while on June 30, 1927, the average salary of the corresponding, 405,263 was $1,969. This was an increase in six years of nearly 53 per cent. On top of this was the generous increase made at the last session of the Congress generally applicable to Federal employees and another bill increasing the pay in certain branches of the Postal Service beyond the large increase which was made three years ago. This raised the average level from $1,969 to $2,092, making an increase in seven years of over 63 per cent. While it is well known that in the upper brackets the pay in the Federal service is much smaller than in private employment, in the lower brackets, ranging well up over $3,000, it is much higher. It is higher not only in actual money paid, but in privileges granted, a vacation of 30 actual working days, or 5 weeks each year, with additional time running in some departments as high as 30 days for sick leave and the generous provisions of the retirement act. No other body of public servants ever occupied such a fortunate position. Through the Bureau of Education of the Department of the Interior the Federal Government, acting in an informative and advisory capacity, has rendered valuable service. While this province belongs peculiarly to the States, yet the promotion of education and efficiency in educational methods is a general responsibility of the Federal Government. A survey of negro colleges and universities in the United States has just been completed by the Bureau of Education through funds provided by the institutions themselves and through private sources. The present status of negro higher education was determined and recommendations were made for its advancement. This was one of the numerous cooperative undertakings of the bureau. Following the invitation of the Association of Land Grant Colleges and Universities, he Bureau of Education now has under way the survey of agricultural colleges, authorized by Congress. The purpose of the survey is to ascertain the accomplishments, the status, and the future objectives of this type of educational training. It is now proposed to undertake a survey of secondary schools, which educators insist is timely and essential. We, have laid out a public building program for the District of Columbia and the country at large running into hundreds of millions of dollars. Three important structures and one annex are already, under way and one addition has been completed in the City of Washington. in the country sites have been acquired, many buildings are in course of construction, and some are already completed. Plans for all this work are being prepared in order that it may be carried forward as rapidly as possible. This is the greatest building program ever assumed by this Nation. It contemplates structures of utility and of beauty. When it reaches completion the people will be well served and the Federal city will be supplied with the most beautiful and stately public buildings which adorn any capital in the world. The administration of Indian affairs has been receiving intensive study for several years. The Department of the Interior has been able to provide better supervision of health, education, and industrial advancement of this native race through additional funds provided by the Congress. The present cooperative arrangement existing between the Bureau of Indian Affairs and the Public Health Service should be extended. The Government's responsibility to the American Indian has been acknowledged by annual increases in appropriations to fulfill its obligations to them and to hasten the time when Federal supervision of their affairs may be properly and safely terminated. The movement in Congress and in some of the State legislatures for extending responsibility in Indian affairs to States should be encouraged. A complete participation by the Indian in our economic life is the end to be desired. For 65 years now our negro population has been under the peculiar care and solicitude of the National Government. The progress which they have made in education and the professions, in wealth and in the arts of civilization, affords one of the most remarkable incidents in this period of world history. They have demonstrated their ability to partake of the advantages of our institutions and to benefit by a free and more and more independent existence. Whatever doubt there may have been of their capacity to assume, the status granted to them by the Constitution of this Union is being rapidly dissipated. Their cooperation in the life of the Nation is constantly enlarging. Exploiting the negro problem for political ends is being abandoned and their protection is being increased by those States in which their percentage of population is largest. Every encouragement should be extended for the development of the race. The colored people have been the victims of the crime of lynching, which has in late years somewhat decreased. Some parts of the South already have wholesome laws for its restraint and punishment. Their example might well be followed by other States, and by such immediate remedial legislation as the Federal Government can extend under the Constitution. Under the guidance of Governor General Stimson the economic and political conditions of the Philippine Islands have been raised to a standard never before surpassed. The cooperation between his administration and the people of the islands is complete and harmonious. It would be an advantage if relief from double taxation could be granted by the Congress to our citizens doing business in the islands. Due to the terrific storm that swept Porto Rico last September, the people of that island suffered large losses. The Red Cross and the War Department went to their rescue. The property loss is being, retrieved. Sugar, tobacco, citrus fruit, and coffee, all suffered damage. The first three can largely look after themselves. The coffee growers will need some assistance, which should be *extended strictly on a business basis, and only after most careful investigation. The people of Porto Rico are not asking for charity. It is desirable that all the legal activities of the Government be consolidated under the supervision of the Attorney General. In 1870 it was felt necessary to create the Department of Justice for this purpose. During the intervening period, either through legislation creating law officers or departmental action, additional legal positions not under the supervision of the Attorney General have been provided until there are now over 900. Such a condition is as harmful to the interest of the Government now as it was in 1870, and should be corrected by appropriate legislation. In order to prosecute the oil cases, I suggested and the Congress enacted a law providing for the appointment of two special counsel. They have pursued their work with signal ability, recovering all the leased lands besides nearly $30,000,000 in money, and nearly $17,000,000 in other property. They find themselves hampered by a statute, which the Attorney General construes as applying to them, prohibiting their appearing for private clients before any department. For this reason, one has been compelled to resign. No good result is secured by the application of this rule to these counsel, and as Mr. Roberts has consented to take reappointment if the rule is abrogated I recommend the passage of an amendment to the law creating their office exempting them from the general rule against taking other cases involving the Government. The country has duly adopted the eighteenth amendment. Those who object to it have the right to advocate its modification or repeal. Meantime) it is binding upon the National and State Governments and all our inhabitants. The Federal enforcement bureau is making every effort to prevent violations, especially through smuggling, manufacture, and transportation, and to prosecute generally all violations for which it can secure evidence. It is bound to continue this policy. Under the terms of the Constitution, however, the obligation is equally on the States to exercise the power which they have through the executive, legislative. judicial, and police branches of their governments in behalf of enforcement. The Federal Government is doing and will continue to do all it can in this direction and is entitled to7the active cooperation of the States. The country is in the midst of an era of prosperity more extensive and of peace more permanent than it has ever before experienced. But, having reached this position, we should not fail to comprehend that it can easily be lost. It needs more effort for its support than the less exalted places of the world. We shall not be permitted to take our case, but shall continue to be required to spend our days in unremitting toil. The actions of the Government must command the confidence of the country. Without this, our prosperity would be lost. We must extend to other countries the largest measure of generosity, moderation, and patience. In addition to dealing justly, we can well afford to walk humbly. The end of government is to keep open the opportunity for a more abundant life. Peace and prosperity are not finalities; they are only methods. It is too easy under their influence for a nation to become selfish and degenerate. This test has come to the United States. Our country has been provided with the resources with which it can enlarge its intellectual, moral, and spiritual life. The issue is in the hands of the people. Our faith in man and God is the justification for the belief in our continuing success.
no congress of the united states ever assembled on surveying the state of the union has met with a more pleasing prospect than that which appears at the present time in the domestic field there is tranquility and contentment harmonious relations between management and wage earner freedom from industrial strife and the highest record of years of prosperity in the foreign field there is peace the good will which comes from mutual understanding and the knowledge that the problems which a short time ago appeared so ominous are yielding to the touch of manifest friendship the great wealth created by our enterprise and industry and saved by our economy has had the widest distribution among our own people and has gone out in a steady stream to serve the charity and the business of the world the requirements of existence have passed beyond the standard of necessity into the region of luxury enlarging production is consumed by an increasing demand at home and an expanding commerce abroad the country can regard the present with satisfaction and anticipate the future with optimism the main source of these unexampled blessings lies in the integrity and character of the american people they have had great faith which they have supplemented with mighty works they have been able to put trust in each other and trust in their government their candor in dealing with foreign governments has commanded respect and confidence yet these remarkable powers would have been exerted almost in vain without the constant cooperation and careful administration of the federal government we have been coming into a period which may be fairly characterized as a conservation of our national resources wastefulness in public business and private enterprise has been displaced by constructive economy this has been accomplished by bringing our domestic and foreign relations more and more under a reign of law a rule of force has been giving way to a rule of reason we have substituted for the vicious circle of increasing expenditures increasing tax rates and diminishing profits the charmed circle of diminishing expenditures diminishing tax rates and increasing profits four times we have made a drastic revision of our internal revenue system abolishing many taxes and substantially reducing almost all others each time the resulting stimulation to business has so increased taxable incomes and profits that a surplus has been produced of the national debt has been paid while much of the other has been refunded at lower rates and these savings of interest and constant economies have enabled us to repeat the satisfying process of more tax reductions under this sound and healthful encouragement the national income has increased nearly 50 per cent until it is estimated to stand well over it has been a method which has performed the seeming miracle of leaving a much greater percentage of earnings in the hands of the taxpayers scarcely any diminution of the government revenue that is constructive economy in the highest degree it is the corner stone of prosperity it should not fail to be continued this action began by the application of economy to public expenditure if it is to be permanent it must be made so by the repeated application of economy there is no surplus on which to base further tax revision at this time last june the estimates showed a threatened deficit for the current fiscal year of under my direction the departments began saving all they could out of their present appropriations the last tax reduction brought encouraging improvement in business beginning early in october which will also increase our revenue the combination of economy and good times now indicates a surplus of about this is a margin of less than i percent on out expenditures and makes it obvious that the treasury is in no condition to undertake increases in expenditures to be made before june 30 it is necessary therefore during the present session to refrain from new appropriations for immediate outlay or if such are absolutely required to provide for them by new revenue otherwise we shall reach the end of the year with the unthinkable result of an unbalanced budget for the first time during my term of office we face that contingency i am certain that the congress would not pass and i should not feel warranted in approving legislation which would involve us in that financial disgrace on the whole the finances of the government are most satisfactory last year the national debt was reduced about the refunding and retirement of the second and third liberty loans have just been brought to a successful conclusion which will save about a year in interest the unpaid balance has been arranged in maturities convenient for carrying out our permanent program the enormous savings made have not been at the expense of any legitimate public need the government plant has been kept up and many improvements are tinder way while its service is fully manned and the general efficiency of operation has increased we have been enabled to undertake many new enterprises among these are the adjusted compensation of the veterans of the world war which is costing us a year amortizing our liability to the civil service retirement funds increase of expenditures for rivers and harbors including flood control public buildings in 1928 we spent in the adjustment of war claims and alien property these are examples of a large list of items when we turn from our domestic affairs to our foreign relations we likewise perceive peace and progress the sixth international conference of american states was held at havana last winter it contributed to a better understanding and cooperation among the nations eleven important conventions were signed and 71 resolutions passed pursuant to the plan then adopted this government has invited the other 20 nations of this hemisphere to it conference on conciliation and arbitration which meets in washington on december 10 all the nations have accepted and the expectation is justified that important progress will be made in methods for resolving international differences by means of arbitration during the year we have signed 11 new arbitration treaties and 22 more are tinder negotiation when a destructive and bloody revolution lately broke out in nicaragua at the earnest and repeated entreaties of its government i dispatched our marine forces there to protect the lives and interests of our citizens to compose the contending parties i sent there henry stimson former secretary of war and now governor general of the philippine islands who secured an agreement that warfare should cease a national election should be held and peace should be restored both parties conscientiously carried out this agreement with the exception of a few bandits who later mostly surrendered or left the country president diaz appointed brig frank mccoy united states army president of the election board which included also one member of each political party a free and fair election has been held and has worked out so successfully that both parties have joined in requesting like cooperation from this country at the election four years hence to which i have refrained from making any commitments although our country must be gratified at such an exhibition of success and appreciation nicaragua is regaining its prosperity and has taken a long step in the direction of peaceful the differences between chile and peru have been sufficiently composed so that diplomatic relations have been resumed by the exchange of ambassadors negotiations are hopefully proceeding as this is written for the final adjustment of the differences over their disputed territory our relations with mexico are on a more satisfactory basis than at any time since their revolution many misunderstandings have been resolved and the most frank and friendly negotiations promise a final adjustment of all unsettled questions it is exceedingly gratifying that ambassador morrow has been able to bring our two neighboring countries which have so many interests in common to a position of confidence in each other and of respect for mutual sovereign rights the situation in china which a few months ago was so threatening as to call for the dispatch of a large additional force has been much composed the nationalist government has established itself over the country and promulgated a new organic law announcing a program intended to promote the political and economic welfare of the people we have recognized this government encouraged its progress and have negotiated a treaty restoring to china complete tariff autonomy and guaranteeing our citizens against discriminations our trade in that quarter is increasing and our forces are being reduced pending before the congress is a recommendation for the settlement of the greek debt and the austrian debt both of these are comparatively small and our country can afford to be generous the rehabilitation of these countries await their settlement there would also be advantages to our trade we could scarcely afford to be the only nation that refuses the relief which austria seeks the congress has already granted austria a moratorium which it is understood will be waived and immediate payments begun on her debt on the same basis which we have extended to other countries one of the most important treaties ever laid before the senate of the united states will be that which the 15 nations recently signed at paris and to which 44 other nations have declared their intention to adhere renouncing war as a national policy and agreeing to resort only to peaceful means for the adjustment of international differences it is the most solemn declaration against war the most positive adherence to peace that it is possible for sovereign nations to make it does not supersede our inalienable sovereign right and duty of national defense or undertake to commit us before the event to any mode of action which the congress might decide to be wise it ever the treaty should be broken but it is a new standard in the world around which can rally the informed and enlightened opinion of nations to prevent their governments from being forced into hostile action by the temporary outbreak of international animosities the observance of this covenant so simple and so straightforward promises more for the peace of the world than any other agreement ever negotiated among the nations the first duty of our government to its own citizens and foreigners within its borders is the preservation of order unless and until that duty is met a government is not even eligible for recognition among the family of nations the advancement of world civilization likewise is dependent upon that order among the people of different countries which we term peace to insure our citizens against the infringement of their legal rights at home and abroad to preserve order liberty and peace by making the law supreme we have an army and a navy both of these are organized for defensive purposes our army could not be much reduced but does not need to be increased such new housing and repairs as are necessary are tinder way and the program in aviation is being put into effect in both branches of our service our navy according to generally accepted standards is deficient in cruisers we have 10 comparatively new vessels 22 that are old and 8 to be built it is evident that renewals and replacements must be provided this matter was thoroughly canvassed at the last session of the congress and does not need restatement the bill before the senate with the elimination of the time clause should be passed we have no intention of competing with any other country this building program is for necessary replacements and to meet our needs for defense the cost of national defense is stupendous it has increased in the past four years the estimated expenditure for 1930 is while this is made up of many items it is after all mostly dependent upon numbers our defensive needs do not can for any increase in the number of men in the army or the navy we have reached the limit of what we ought to expend for that purpose i wish to repeat again for the benefit of the timid and the suspicious that this country is neither militaristic nor imperialistic many people at home and abroad who constantly make this charge are the same ones who are even more solicitous to have us extend assistance to foreign countries when such assistance is granted the inevitable result is that we have foreign interests for us to refuse the customary support and protection of such interests would be in derogation of the sovereignty of this nation our largest foreign interests are in the british empire france and italy because we are constantly solicitous for those interests i doubt if anyone would suppose that those countries feel we harbor toward them any militaristic or imperialistic design as for smaller countries we certainly do not want any of them we are more anxious than they are to have their sovereignty respected our entire influence is in behalf of their independence cuba stands as a witness to our adherence to this principle the position of this government relative to the limitation of armaments the results already secured and the developments up to the present time are so well known to the congress that they do not require any restatement the magnitude of our present system of veterans relief is without precedent and the results have been for years a service pension has been granted to the grand army and lately to the survivors of the war at the time we entered the world war however congress departed from the usual pension system followed by our gove2rnment eleven years have elapsed since our laws were first enacted initiating a system of compensation rehabilitation hospitalization and insurance for the disabled of the world war and their dependents the administration all the laws concerning relief has been a difficult task but it can safely be stated that these measures have omitted nothing in their desire to deal generously and humanely we should continue to foster this system and provide all the facilities necessary for adequate care it is the conception of our government that the pension roll is an honor roll it should include all those who are justly entitled to its benefits but exclude all others annual expenditures for all forms of veterans relief now approximate and are increasing from year to year it is doubtful if the peak of expenditures will be reached even under present legislation for sonic time yet to come further amendments to the existing law will be suggested by the american legion the veterans of foreign wars of the united states the disabled american veterans of the world war and other like organizations and it may be necessary for administrative purposes or in order to remove some existing inequalities in the present law to make further changes i am sure that such recommendations its may be submitted to the congress will receive your careful consideration but because of the vast expenditure now being made each year with every assurance that it will increase and because of the great liberality of the existing law the proposal of any additional legislation dealing with this subject should receive most searching scrutiny from the congress you are familiar with the suggestion that the various public agencies now dealing with matters of veterans relief be consolidated in one government department some advantages to this plan seem apparent especially in the simplification of administration find in the opportunity of bringing about a greater uniformity in the application of veterans relief i recommend that a survey be made by the proper committees of congress dealing with this subject in order to determine whether legislation to secure this consolidation is desirable the past year has been marked by notable though not uniform improvement in agriculture the general purchasing power of farm products and the volume of production have advanced this means not only further progress in overcoming the price disparity into which agriculture was plunged in but also increased efficiency on the part of farmers and a confidence in the future of agriculture the livestock industry has attained the best balance for many years and is prospering conspicuously dairymen beef producers an poultrymen are receiving substantially larger returns than last year cotton although lower in price than at this time last year was produced in greater volume and the prospect for cotton incomes is favorable but progress is never uniform in a vast and highly diversified agriculture or industry cash grains hay tobacco and potatoes will bring somewhat smaller returns this year than last present indications are however that the gross farm income will be somewhat larger than in the crop year when the total was the corresponding figure for was and in still better results would have been secured this year had there not been an undue increase in the production of certain crops this is particularly true of potatoes which have sold at an unremunerative price or at a loss as a direct result of of acreage the present status of agriculture although greatly improved over that of a few years ago bespeaks the need of further improvemen4 which calls for determined effort of farmers themselves encouraged and assisted by wise public policy the government has been and must continue to be alive to the needs of agriculture in the past eight years more constructive legislation of direct benefit to agriculture has been adopted than during any other period the department of agriculture has been broadened and reorganized to insure greater efficiency the department is laying greater stress on the economic and business phases of agriculture it is lending every possible assistance to cooperative marketing associations regulatory and research work have been segregated in order that each field may be served more effectively i can not too strongly commend in the field of fact finding the research work of the department of agriculture and the state experiment stations the department now receives annually more for research than in 1921 in addition the funds paid to the states for experimentation purposes under the purnell act constitute an annual increase in federal payments to state agricultural experiment stations of over the amount appropriated in 1921 the program of support for research may wisely be continued and expanded since 1921 we have appropriated nearly an additional for extension work and this sum is to be increased next year under authorization by the act while these developments in fundamental research regulation and dissemination of agricultural information are of distinct hell to agriculture additional effort is needed the surplus problem demands attention as emphasized in my last message the government should assume no responsibility in normal times for crop surplus clearly due to overextended acreage the government should however provide reliable information as a guide to private effort and in this connection fundamental research on prospective supply and demand as a guide to production and marketing should be encouraged expenditure of public funds to bring in more new land should have most searching scrutiny so long as our farmers face unsatisfactory prices for crops and livestock produced on land already under cultivation every proper effort should be made to put land to uses for which it is adapted the reforestation of land best suited for timber production is progressing and should be encouraged and to this end the forest taxation inquiry was instituted to afford a practical guide for public policy improvement bas been made in grazing regulation in the forest reserves not only to protect the ranges but to preserve the soil from erosion similar action is urgently needed to protect other public lands which are now overgrazed and rapidly eroding temporary expedients though sometimes capable of appeasing the demands of the moment can not permanently solve the surplus problem and might seriously aggravate it hence putting the government directly into business subsidies and price fixing and the alluring promises of political action as a substitute for private initiative should be avoided the government should aid in promoting orderly marketing and in handling surpluses clearly due to weather and seasonal conditions as a beginning there should be created a federal farm board consisting of able and experienced men empowered to advise producers associations in establishing central agencies or stabilization corporations to handle surpluses to seek wore economical means of merchandising and to aid the producer in securing returns according to the a14 of his product a revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions such a bill should carry authority for raising the money by loans or otherwise necessary to meet the expense as the treasury has no surplus agriculture has lagged behind industry in achieving that unity of effort which modern economic life demands the cooperative movement which is gradually building the needed organization is in harmony with public interest and therefore merits public encouragement important phases of public policy related to agriculture lie within the sphere of the states while successive reductions in federal taxes have relieved most farmers of direct taxes to the national government state and local levies have become a serious burden this problem needs immediate and thorough study with a view to correction at the earliest possible moment it will have to be made largely by the states themselves it is desirable that the government continue its helpful attitude toward american business the activities of the department of commerce have contributed largely to the present satisfactory position in our international trade which has reached about annually there should be no slackening of effort in that direction it is also important that the department assistance to domestic commerce be continued there is probably no way in which the government can aid sound economic progress more effectively than by cooperation with our business men to reduce wastes in distribution continued progress in civil aviation is most gratifying demands for airplanes and motors have taxed both the industry and the licensing and inspection service of the department of commerce to their capacity while the compulsory licensing provisions of the air commerce act apply only to equipment and personnel engaged in interstate and foreign commerce a federal license may be procured by anyone possessing the necessary qualifications state legislation local airport regulations and insurance requirements make such a license practically indispensable this results in uniformity of regulation and increased safety in operation which are essential to aeronautical development over young men and women have now applied for federal air pilot licenses or permits more than 80 per cent of them applied during the past year our national airway system exceeds miles in length and has miles lighted for night operations provision has been made for lighting miles more during the current fiscal year and equipping an equal mileage with radio facilities of our people are now served by these routes with the rapid growth of air mail express and passenger service this new transportation medium is daily becoming a more important factor in commerce it is noteworthy that this development has taken place without governmental subsidies commercial passenger flights operating on schedule have reached miles per day during the next fortnight this nation will entertain the nations of the world in a celebration of the anniversary of the first successful airplane flight the credit for this achievement belongs to a citizen of our own country orville wright i desire to repeat my recommendation of an earlier message that congress enact the legislation necessary to make permanent the parcel post convention with cuba both as a facility to american commerce and as a measure of equity to cuba in the one class of goods which that country can send here by parcel post without detriment to our own trade when i attended the pan american conference at havana the president of cuba showed me a marble statue made from the original memorial that was overturned by a storm after it was erected on the cuban shore to the memory of the men who perished in the destruction of the battleship maine as a testimony of friendship and appreciation of the cuban government and people lie most generously offered to present this to the united states and i assured him of my pleasure in accepting it there is no location in the white house for placing so large and heavy a structure and i therefore urge the congress to provide by law for some locality where it can be set up in previous annual messages i have suggested the enactment of laws to promote railroad consolidation with the view of increasing the efficiency of transportation and lessening its cost to the public while consolidations can and should be made under the present law until it is changed vet the provisions of the act of 1920 have not been found fully adequate to meet the needs of other methods of consolidation amendments designed to remedy these defects have been considered at length by the respective committees of congress and a bill was reported out late in the last session which i understand has the approval in principle of the interstate commerce commission it is to be hoped that this legislation may be enacted at an early date experience has shown that the interstate commerce law requires definition and clarification in several other respects some of which have been pointed out by the interstate commerce commission in its annual reports to the congress it will promote the public interest to have the congress give early consideration to the recommendations there made the cost of maintaining the united states government merchant fleet has been steadily reduced we have established american flag lines in foreign trade where they had never before existed as a means of promoting commerce and as a naval auxiliary there have been sold to private american capital for operation within the past few years 14 of these lines which under the encouragement of the recent legislation passed by the congress give promise of continued successful operation additional legislation from time to time may be necessary to promote future advancement under private control through the cooperation of the post office department and the shipping board contracts are being made with american steamship lines for carrying mail which already promise the construction of 15 to 20 new vessels and the gradual reestablishment of the american merchant marine as a private enterprise no action of the national government has been so beneficial to our shipping the cost is being absorbed to a considerable extent by the disposal of unprofitable lines operated by the shipping board for which the new law has made a market meanwhile it should be our policy to maintain necessary strategic lines under the government operation until they can be transferred to private capital in my message last year i expressed the view that we should lend our encouragement for more good roads to all the principal points on this hemisphere south of the rio grande my view has not changed the pan american union has recently endorsed it in some of the countries to the south a great deal of progress is being made in road building in others engineering features are often exacting and financing difficult as those countries enter upon programs for road building we should be ready to contribute from our abundant experience to make their task easier of accomplishment i prefer not to go into civil life to accomplish this end we already furnish military and naval advisers and following this precedent we could draw competent men from these same sources and from the department of agriculture we should provide our southern neighbors if they request it with such engineer advisers for the construction of roads and bridges private interests should look with favor upon all reasonable loans sought by these countries to open main lines of travel such assistance should be given especially to any project for a highway designed to connect all the countries on this hemisphere and thus facilitate intercourse and closer relations among them the friendly relations and the extensive commercial intercourse with the western hemisphere to the south of us are being further cemented by the establishment and extension of routes we shall soon have one from key west over cuba haiti and santo domingo to san juan where it will connect with another route to trinidad there will be another route from key west to the canal zone where connection will be made with a route across the northern coast of south america to paramaribo this will give us a circle around the caribbean under our own control additional connections will be made at colon with a route running down the west coast of south america as far as conception chile and with the french air mail at paramaribo running down the eastern coast of south america the air service already spans our continent with laterals running to mexico and canada and covering a daily flight of over miles with an average cargo of 15 000 pounds our river and harbor improvements are proceeding with vigor in the past few years we have increased the appropriation for this regular work besides what is to be expended on flood control the total appropriation for this year was over the ohio river is almost ready for opening work on the missouri and other rivers is under way in accordance with the mississippi flood law army engineers are making investigations and surveys on other streams throughout the country with a view to flood control navigation waterpower and irrigation our barge lines are being operated under generous appropriations and negotiations are developing relative to the lawrence waterway to secure the largest benefits from all these waterways joint rates must be established with the railroads preferably by agreement but otherwise as a result of congressional action we have recently passed several river and harbor bills the work ordered by the congress not yet completed will cost about besides the hundreds of millions to be spent on the mississippi flood way until we can see our way out of this expense no further river and harbor legislation should be passed as expenditures to put it into effect would be four or five years away for many years the federal government has been committed to the wise policy of reclamation and irrigation while it has met with some failures due to unwise selection of projects and lack of thorough soil surveys so that they could not be placed on a sound business basis on the whole the service has been of such incalculable benefit in so many states that no one would advocate its abandonment the program to which we are already committed providing for the construction of new projects authorized by congress and the completion of old projects will tax the resources of the reclamation fund over a period of years the high cost of improving and equipping farms adds to the difficulty of securing settlers for vacant farms on federal projects readjustments authorized by the reclamation relief act of may 25 1926 have given more favorable terms of repayment to settlers these new financial arrangements and the general prosperity on irrigation projects have resulted in increased collections by the department of the interior of charges due the reclamation fund nevertheless the demand for still smaller yearly payments on some projects continues these conditions should have consideration in connection with any proposed new projects for several years the congress has considered the erection of a dam on the colorado river for irrigation and domestic water purposes all of which ma properly be considered as government functions there would be an incidental creation of water power which could be used for generating electricity as private enterprise can very well fill this field there is no need for the government to go into it it is unfortunate that the states interested in this water have been unable to agree among themselves nevertheless any legislation should give every possible safeguard to the present and prospective rights of each of them the congress will have before it the detailed report of a special board appointed to consider the engineering and economic feasibility of this project from the short summary which i have seen of it i judge they consider the engineering problems can be met at somewhat increased cost over previous estimates they prefer the black canyon site on the economic features they are not so clear and appear to base their conclusions on many conditions which can not be established with certainty so far as i can judge however from the summary their conclusions appear sufficiently favorable so that i feel warranted in recommending a measure which will protect the rights of the states discharge the necessary government functions and leave the electrical field to private enterprise the development of other methods of producing nitrates will probably render this plant less important for that purpose than formerly but we have it and i am told it still provides a practical method of making nitrates for national defense and farm fertilizers by dividing the property into its two component parts of power and nitrate plants it would be possible to dispose of the power reserving the right to any concern that wished to make nitrates to use any power that might be needed for that purpose such a disposition of the power plant can be made that will return in rental about per year if the congress would giant the secretary of war authority to lease the nitrate plant on such terms as would insure the largest production of nitrates the entire property could begin to function such a division i am aware has never seemed to appeal to the congress i should also gladly approve a bill granting authority to lease the entire property for the production of nitrates i wish to avoid building another dam at public expense future operators should provide for that themselves but if they were to be required to repay the cost of such dam with tile prevailing commercial rates for interest this difficulty will be considerably lessened nor do i think this property should be made a vehicle for putting the united states government indiscriminately into the private and retail field of power distribution and nitrate sales the practical application of economy to the resources of the country calls for conservation this does not mean that every resource should not be developed to its full degree but it means that none of them should be wasted we have a conservation board working on our oil problem this is of the utmost importance to the future of our people in this age of engines and tile general application of gasoline to transportation the secretary of the interior should not be compelled to lease oil lands of the osage indians when the market is depressed and the future supply is in jeopardy while the area of lands remaining in public ownership is small compared with the vast area in private ownership the natural resources of those in public ownership are of immense present and future value this is particularly trite as to minerals and water power the proper bureaus have been classifying these resources to the end that they may be conserved appropriate estimates are being submitted in the budget for the further prosecution of this important work the policy of restrictive immigration should be maintained authority should be granted the secretary of labor to give immediate preference to learned professions and experts essential to new industries the reuniting of families should be expedited our immigration and naturalization laws might well be codified in its economic life our country has rejected the long accepted law of a limitation of the wage fund which led to pessimism and despair because it was the doctrine of perpetual poverty and has substituted for it the american conception that the only limit to profits and wages is production which is the doctrine of optimism and hope because it leads to prosperity here and there the councils of labor are still darkened by the theory that only by limiting individual production can there be any assurance of permanent employment for increasing numbers but in general management and wage earner alike have become emancipated from this doom and have entered a new era in industrial thought which has unleashed the productive capacity of the individual worker with an increasing scale of wages and profits the end of which is not yet the application of this theory accounts for our widening distribution of wealth no discovery ever did more to increase the happiness and prosperity of the people since 1922 increasing production has increased wages in general per cent while in certain selected trades they have run as high as per cent and 38 per cent even in the boot and shoe shops the increase is over 5 per cent and in woolen mills per cent although these industries have not prospered like others as the rise in living costs in this period is negligible these figures represent real wage increases the because of constructive economy requires that the government should cooperate with private interests to eliminate the waste arising from industrial accidents this item with all that has been done to reduce it still reaches enormous proportions with great suffering to the workman and great loss to the country the federal government should continue its solicitous care for the women wage earners and its efforts in behalf of public health which is reducing infant mortality and improving the bodily and mental condition of our citizens the most marked change made in the civil service of the government in the past eight years relates to the increase in salaries the board of actuaries on the retirement act shows by its report that july 1 1921 the average salary of the employees subject to the act was while on june 30 1927 the average salary of the corresponding was this was an increase in six years of nearly 53 per cent on top of this was the generous increase made at the last session of the congress generally applicable to federal employees and another bill increasing the pay in certain branches of the postal service beyond the large increase which was made three years ago this raised the average level from to making an increase in seven years of over 63 per cent while it is well known that in the upper brackets the pay in the federal service is much smaller than in private employment in the lower brackets ranging well up over it is much higher it is higher not only in actual money paid but in privileges granted a vacation of 30 actual working days or 5 weeks each year with additional time running in some departments as high as 30 days for sick leave and the generous provisions of the retirement act no other body of public servants ever occupied such a fortunate position through the bureau of education of the department of the interior the federal government acting in an informative and advisory capacity has rendered valuable service while this province belongs peculiarly to the states yet the promotion of education and efficiency in educational methods is a general responsibility of the federal government a survey of negro colleges and universities in the united states has just been completed by the bureau of education through funds provided by the institutions themselves and through private sources the present status of negro higher education was determined and recommendations were made for its advancement this was one of the numerous cooperative undertakings of the bureau following the invitation of the association of land grant colleges and universities he bureau of education now has under way the survey of agricultural colleges authorized by congress the purpose of the survey is to ascertain the accomplishments the status and the future objectives of this type of educational training it is now proposed to undertake a survey of secondary schools which educators insist is timely and essential we have laid out a public building program for the district of columbia and the country at large running into hundreds of millions of dollars three important structures and one annex are already under way and one addition has been completed in the city of washington in the country sites have been acquired many buildings are in course of construction and some are already completed plans for all this work are being prepared in order that it may be carried forward as rapidly as possible this is the greatest building program ever assumed by this nation it contemplates structures of utility and of beauty when it reaches completion the people will be well served and the federal city will be supplied with the most beautiful and stately public buildings which adorn any capital in the world the administration of indian affairs has been receiving intensive study for several years the department of the interior has been able to provide better supervision of health education and industrial advancement of this native race through additional funds provided by the congress the present cooperative arrangement existing between the bureau of indian affairs and the public health service should be extended the government responsibility to the american indian has been acknowledged by annual increases in appropriations to fulfill its obligations to them and to hasten the time when federal supervision of their affairs may be properly and safely terminated the movement in congress and in some of the state legislatures for extending responsibility in indian affairs to states should be encouraged a complete participation by the indian in our economic life is the end to be desired for 65 years now our negro population has been under the peculiar care and solicitude of the national government the progress which they have made in education and the professions in wealth and in the arts of civilization affords one of the most remarkable incidents in this period of world history they have demonstrated their ability to partake of the advantages of our institutions and to benefit by a free and more and more independent existence whatever doubt there may have been of their capacity to assume the status granted to them by the constitution of this union is being rapidly dissipated their cooperation in the life of the nation is constantly enlarging exploiting the negro problem for political ends is being abandoned and their protection is being increased by those states in which their percentage of population is largest every encouragement should be extended for the development of the race the colored people have been the victims of the crime of lynching which has in late years somewhat decreased some parts of the south already have wholesome laws for its restraint and punishment their example might well be followed by other states and by such immediate remedial legislation as the federal government can extend under the constitution under the guidance of governor general stimson the economic and political conditions of the philippine islands have been raised to a standard never before surpassed the cooperation between his administration and the people of the islands is complete and harmonious it would be an advantage if relief from double taxation could be granted by the congress to our citizens doing business in the islands due to the terrific storm that swept porto rico last september the people of that island suffered large losses the red cross and the war department went to their rescue the property loss is being retrieved sugar tobacco citrus fruit and coffee all suffered damage the first three can largely look after themselves the coffee growers will need some assistance which should be extended strictly on a business basis and only after most careful investigation the people of porto rico are not asking for charity it is desirable that all the legal activities of the government be consolidated under the supervision of the attorney general in 1870 it was felt necessary to create the department of justice for this purpose during the intervening period either through legislation creating law officers or departmental action additional legal positions not under the supervision of the attorney general have been provided until there are now over 900 such a condition is as harmful to the interest of the government now as it was in 1870 and should be corrected by appropriate legislation in order to prosecute the oil cases i suggested and the congress enacted a law providing for the appointment of two special counsel they have pursued their work with signal ability recovering all the leased lands besides nearly in money and nearly in other property they find themselves hampered by a statute which the attorney general construes as applying to them prohibiting their appearing for private clients before any department for this reason one has been compelled to resign no good result is secured by the application of this rule to these counsel and as roberts has consented to take reappointment if the rule is abrogated i recommend the passage of an amendment to the law creating their office exempting them from the general rule against taking other cases involving the government the country has duly adopted the eighteenth amendment those who object to it have the right to advocate its modification or repeal meantime it is binding upon the national and state governments and all our inhabitants the federal enforcement bureau is making every effort to prevent violations especially through smuggling manufacture and transportation and to prosecute generally all violations for which it can secure evidence it is bound to continue this policy under the terms of the constitution however the obligation is equally on the states to exercise the power which they have through the executive legislative judicial and police branches of their governments in behalf of enforcement the federal government is doing and will continue to do all it can in this direction and is entitled to7the active cooperation of the states the country is in the midst of an era of prosperity more extensive and of peace more permanent than it has ever before experienced but having reached this position we should not fail to comprehend that it can easily be lost it needs more effort for its support than the less exalted places of the world we shall not be permitted to take our case but shall continue to be required to spend our days in unremitting toil the actions of the government must command the confidence of the country without this our prosperity would be lost we must extend to other countries the largest measure of generosity moderation and patience in addition to dealing justly we can well afford to walk humbly the end of government is to keep open the opportunity for a more abundant life peace and prosperity are not finalities they are only methods it is too easy under their influence for a nation to become selfish and degenerate this test has come to the united states our country has been provided with the resources with which it can enlarge its intellectual moral and spiritual life the issue is in the hands of the people our faith in man and god is the justification for the belief in our continuing success
congress united states ever assembled surveying state union met pleasing prospect appears present time domestic field tranquility contentment harmonious relations management wage earner freedom industrial strife highest record years prosperity foreign field peace good comes mutual understanding knowledge problems short time ago appeared ominous yielding touch manifest friendship great wealth created enterprise industry saved economy widest distribution among people gone steady stream serve charity business world requirements existence passed beyond standard necessity region luxury enlarging production consumed increasing demand home expanding commerce abroad country regard present satisfaction anticipate future optimism main source unexampled blessings lies integrity character american people great faith supplemented mighty works able put trust trust government candor dealing foreign governments commanded respect confidence yet remarkable powers would exerted almost vain without constant cooperation careful administration federal government coming period may fairly characterized conservation national resources wastefulness public business private enterprise displaced constructive economy accomplished bringing domestic foreign relations reign law rule force giving way rule reason substituted vicious circle increasing expenditures increasing tax rates diminishing profits charmed circle diminishing expenditures diminishing tax rates increasing profits four times made drastic revision internal revenue system abolishing many taxes substantially reducing almost others time resulting stimulation business increased taxable incomes profits surplus produced national debt paid much refunded lower rates savings interest constant economies enabled us repeat satisfying process tax reductions sound healthful encouragement national income increased nearly 50 per cent estimated stand well method performed seeming miracle leaving much greater percentage earnings hands taxpayers scarcely diminution government revenue constructive economy highest degree corner stone prosperity fail continued action began application economy public expenditure permanent must made repeated application economy surplus base tax revision time last june estimates showed threatened deficit current fiscal year direction departments began saving could present appropriations last tax reduction brought encouraging improvement business beginning early october also increase revenue combination economy good times indicates surplus margin less percent expenditures makes obvious treasury condition undertake increases expenditures made june 30 necessary therefore present session refrain new appropriations immediate outlay absolutely required provide new revenue otherwise shall reach end year unthinkable result unbalanced budget first time term office face contingency certain congress would pass feel warranted approving legislation would involve us financial disgrace whole finances government satisfactory last year national debt reduced refunding retirement second third liberty loans brought successful conclusion save year interest unpaid balance arranged maturities convenient carrying permanent program enormous savings made expense legitimate public need government plant kept many improvements tinder way service fully manned general efficiency operation increased enabled undertake many new enterprises among adjusted compensation veterans world war costing us year amortizing liability civil service retirement funds increase expenditures rivers harbors including flood control public buildings 1928 spent adjustment war claims alien property examples large list items turn domestic affairs foreign relations likewise perceive peace progress sixth international conference american states held havana last winter contributed better understanding cooperation among nations eleven important conventions signed 71 resolutions passed pursuant plan adopted government invited 20 nations hemisphere conference conciliation arbitration meets washington december 10 nations accepted expectation justified important progress made methods resolving international differences means arbitration year signed 11 new arbitration treaties 22 tinder negotiation destructive bloody revolution lately broke nicaragua earnest repeated entreaties government dispatched marine forces protect lives interests citizens compose contending parties sent henry stimson former secretary war governor general philippine islands secured agreement warfare cease national election held peace restored parties conscientiously carried agreement exception bandits later mostly surrendered left country president diaz appointed brig frank mccoy united states army president election board included also one member political party free fair election held worked successfully parties joined requesting like cooperation country election four years hence refrained making commitments although country must gratified exhibition success appreciation nicaragua regaining prosperity taken long step direction peaceful differences chile peru sufficiently composed diplomatic relations resumed exchange ambassadors negotiations hopefully proceeding written final adjustment differences disputed territory relations mexico satisfactory basis time since revolution many misunderstandings resolved frank friendly negotiations promise final adjustment unsettled questions exceedingly gratifying ambassador morrow able bring two neighboring countries many interests common position confidence respect mutual sovereign rights situation china months ago threatening call dispatch large additional force much composed nationalist government established country promulgated new organic law announcing program intended promote political economic welfare people recognized government encouraged progress negotiated treaty restoring china complete tariff autonomy guaranteeing citizens discriminations trade quarter increasing forces reduced pending congress recommendation settlement greek debt austrian debt comparatively small country afford generous rehabilitation countries await settlement would also advantages trade could scarcely afford nation refuses relief austria seeks congress already granted austria moratorium understood waived immediate payments begun debt basis extended countries one important treaties ever laid senate united states 15 nations recently signed paris 44 nations declared intention adhere renouncing war national policy agreeing resort peaceful means adjustment international differences solemn declaration war positive adherence peace possible sovereign nations make supersede inalienable sovereign right duty national defense undertake commit us event mode action congress might decide wise ever treaty broken new standard world around rally informed enlightened opinion nations prevent governments forced hostile action temporary outbreak international animosities observance covenant simple straightforward promises peace world agreement ever negotiated among nations first duty government citizens foreigners within borders preservation order unless duty met government even eligible recognition among family nations advancement world civilization likewise dependent upon order among people different countries term peace insure citizens infringement legal rights home abroad preserve order liberty peace making law supreme army navy organized defensive purposes army could much reduced need increased new housing repairs necessary tinder way program aviation put effect branches service navy according generally accepted standards deficient cruisers 10 comparatively new vessels 22 old 8 built evident renewals replacements must provided matter thoroughly canvassed last session congress need restatement bill senate elimination time clause passed intention competing country building program necessary replacements meet needs defense cost national defense stupendous increased past four years estimated expenditure 1930 made many items mostly dependent upon numbers defensive needs increase number men army navy reached limit ought expend purpose wish repeat benefit timid suspicious country neither militaristic imperialistic many people home abroad constantly make charge ones even solicitous us extend assistance foreign countries assistance granted inevitable result foreign interests us refuse customary support protection interests would derogation sovereignty nation largest foreign interests british empire france italy constantly solicitous interests doubt anyone would suppose countries feel harbor toward militaristic imperialistic design smaller countries certainly want anxious sovereignty respected entire influence behalf independence cuba stands witness adherence principle position government relative limitation armaments results already secured developments present time well known congress require restatement magnitude present system veterans relief without precedent results years service pension granted grand army lately survivors war time entered world war however congress departed usual pension system followed gove2rnment eleven years elapsed since laws first enacted initiating system compensation rehabilitation hospitalization insurance disabled world war dependents administration laws concerning relief difficult task safely stated measures omitted nothing desire deal generously humanely continue foster system provide facilities necessary adequate care conception government pension roll honor roll include justly entitled benefits exclude others annual expenditures forms veterans relief approximate increasing year year doubtful peak expenditures reached even present legislation sonic time yet come amendments existing law suggested american legion veterans foreign wars united states disabled american veterans world war like organizations may necessary administrative purposes order remove existing inequalities present law make changes sure recommendations may submitted congress receive careful consideration vast expenditure made year every assurance increase great liberality existing law proposal additional legislation dealing subject receive searching scrutiny congress familiar suggestion various public agencies dealing matters veterans relief consolidated one government department advantages plan seem apparent especially simplification administration find opportunity bringing greater uniformity application veterans relief recommend survey made proper committees congress dealing subject order determine whether legislation secure consolidation desirable past year marked notable though uniform improvement agriculture general purchasing power farm products volume production advanced means progress overcoming price disparity agriculture plunged also increased efficiency part farmers confidence future agriculture livestock industry attained best balance many years prospering conspicuously dairymen beef producers poultrymen receiving substantially larger returns last year cotton although lower price time last year produced greater volume prospect cotton incomes favorable progress never uniform vast highly diversified agriculture industry cash grains hay tobacco potatoes bring somewhat smaller returns year last present indications however gross farm income somewhat larger crop year total corresponding figure still better results would secured year undue increase production certain crops particularly true potatoes sold unremunerative price loss direct result acreage present status agriculture although greatly improved years ago bespeaks need improvemen4 calls determined effort farmers encouraged assisted wise public policy government must continue alive needs agriculture past eight years constructive legislation direct benefit agriculture adopted period department agriculture broadened reorganized insure greater efficiency department laying greater stress economic business phases agriculture lending every possible assistance cooperative marketing associations regulatory research work segregated order field may served effectively strongly commend field fact finding research work department agriculture state experiment stations department receives annually research 1921 addition funds paid states experimentation purposes purnell act constitute annual increase federal payments state agricultural experiment stations amount appropriated 1921 program support research may wisely continued expanded since 1921 appropriated nearly additional extension work sum increased next year authorization act developments fundamental research regulation dissemination agricultural information distinct hell agriculture additional effort needed surplus problem demands attention emphasized last message government assume responsibility normal times crop surplus clearly due overextended acreage government however provide reliable information guide private effort connection fundamental research prospective supply demand guide production marketing encouraged expenditure public funds bring new land searching scrutiny long farmers face unsatisfactory prices crops livestock produced land already cultivation every proper effort made put land uses adapted reforestation land best suited timber production progressing encouraged end forest taxation inquiry instituted afford practical guide public policy improvement bas made grazing regulation forest reserves protect ranges preserve soil erosion similar action urgently needed protect public lands overgrazed rapidly eroding temporary expedients though sometimes capable appeasing demands moment permanently solve surplus problem might seriously aggravate hence putting government directly business subsidies price fixing alluring promises political action substitute private initiative avoided government aid promoting orderly marketing handling surpluses clearly due weather seasonal conditions beginning created federal farm board consisting able experienced men empowered advise producers associations establishing central agencies stabilization corporations handle surpluses seek wore economical means merchandising aid producer securing returns according a14 product revolving loan fund provided necessary financing agencies shall developed means financing operations regularly constituted credit institutions bill carry authority raising money loans otherwise necessary meet expense treasury surplus agriculture lagged behind industry achieving unity effort modern economic life demands cooperative movement gradually building needed organization harmony public interest therefore merits public encouragement important phases public policy related agriculture lie within sphere states successive reductions federal taxes relieved farmers direct taxes national government state local levies become serious burden problem needs immediate thorough study view correction earliest possible moment made largely states desirable government continue helpful attitude toward american business activities department commerce contributed largely present satisfactory position international trade reached annually slackening effort direction also important department assistance domestic commerce continued probably way government aid sound economic progress effectively cooperation business men reduce wastes distribution continued progress civil aviation gratifying demands airplanes motors taxed industry licensing inspection service department commerce capacity compulsory licensing provisions air commerce act apply equipment personnel engaged interstate foreign commerce federal license may procured anyone possessing necessary qualifications state legislation local airport regulations insurance requirements make license practically indispensable results uniformity regulation increased safety operation essential aeronautical development young men women applied federal air pilot licenses permits 80 per cent applied past year national airway system exceeds miles length miles lighted night operations provision made lighting miles current fiscal year equipping equal mileage radio facilities people served routes rapid growth air mail express passenger service new transportation medium daily becoming important factor commerce noteworthy development taken place without governmental subsidies commercial passenger flights operating schedule reached miles per day next fortnight nation entertain nations world celebration anniversary first successful airplane flight credit achievement belongs citizen country orville wright desire repeat recommendation earlier message congress enact legislation necessary make permanent parcel post convention cuba facility american commerce measure equity cuba one class goods country send parcel post without detriment trade attended pan american conference havana president cuba showed marble statue made original memorial overturned storm erected cuban shore memory men perished destruction battleship maine testimony friendship appreciation cuban government people lie generously offered present united states assured pleasure accepting location white house placing large heavy structure therefore urge congress provide law locality set previous annual messages suggested enactment laws promote railroad consolidation view increasing efficiency transportation lessening cost public consolidations made present law changed vet provisions act 1920 found fully adequate meet needs methods consolidation amendments designed remedy defects considered length respective committees congress bill reported late last session understand approval principle interstate commerce commission hoped legislation may enacted early date experience shown interstate commerce law requires definition clarification several respects pointed interstate commerce commission annual reports congress promote public interest congress give early consideration recommendations made cost maintaining united states government merchant fleet steadily reduced established american flag lines foreign trade never existed means promoting commerce naval auxiliary sold private american capital operation within past years 14 lines encouragement recent legislation passed congress give promise continued successful operation additional legislation time time may necessary promote future advancement private control cooperation post office department shipping board contracts made american steamship lines carrying mail already promise construction 15 20 new vessels gradual reestablishment american merchant marine private enterprise action national government beneficial shipping cost absorbed considerable extent disposal unprofitable lines operated shipping board new law made market meanwhile policy maintain necessary strategic lines government operation transferred private capital message last year expressed view lend encouragement good roads principal points hemisphere south rio grande view changed pan american union recently endorsed countries south great deal progress made road building others engineering features often exacting financing difficult countries enter upon programs road building ready contribute abundant experience make task easier accomplishment prefer go civil life accomplish end already furnish military naval advisers following precedent could draw competent men sources department agriculture provide southern neighbors request engineer advisers construction roads bridges private interests look favor upon reasonable loans sought countries open main lines travel assistance given especially project highway designed connect countries hemisphere thus facilitate intercourse closer relations among friendly relations extensive commercial intercourse western hemisphere south us cemented establishment extension routes shall soon one key west cuba haiti santo domingo san juan connect another route trinidad another route key west canal zone connection made route across northern coast south america paramaribo give us circle around caribbean control additional connections made colon route running west coast south america far conception chile french air mail paramaribo running eastern coast south america air service already spans continent laterals running mexico canada covering daily flight miles average cargo 15 000 pounds river harbor improvements proceeding vigor past years increased appropriation regular work besides expended flood control total appropriation year ohio river almost ready opening work missouri rivers way accordance mississippi flood law army engineers making investigations surveys streams throughout country view flood control navigation waterpower irrigation barge lines operated generous appropriations negotiations developing relative lawrence waterway secure largest benefits waterways joint rates must established railroads preferably agreement otherwise result congressional action recently passed several river harbor bills work ordered congress yet completed cost besides hundreds millions spent mississippi flood way see way expense river harbor legislation passed expenditures put effect would four five years away many years federal government committed wise policy reclamation irrigation met failures due unwise selection projects lack thorough soil surveys could placed sound business basis whole service incalculable benefit many states one would advocate abandonment program already committed providing construction new projects authorized congress completion old projects tax resources reclamation fund period years high cost improving equipping farms adds difficulty securing settlers vacant farms federal projects readjustments authorized reclamation relief act may 25 1926 given favorable terms repayment settlers new financial arrangements general prosperity irrigation projects resulted increased collections department interior charges due reclamation fund nevertheless demand still smaller yearly payments projects continues conditions consideration connection proposed new projects several years congress considered erection dam colorado river irrigation domestic water purposes properly considered government functions would incidental creation water power could used generating electricity private enterprise well fill field need government go unfortunate states interested water unable agree among nevertheless legislation give every possible safeguard present prospective rights congress detailed report special board appointed consider engineering economic feasibility project short summary seen judge consider engineering problems met somewhat increased cost previous estimates prefer black canyon site economic features clear appear base conclusions many conditions established certainty far judge however summary conclusions appear sufficiently favorable feel warranted recommending measure protect rights states discharge necessary government functions leave electrical field private enterprise development methods producing nitrates probably render plant less important purpose formerly told still provides practical method making nitrates national defense farm fertilizers dividing property two component parts power nitrate plants would possible dispose power reserving right concern wished make nitrates use power might needed purpose disposition power plant made return rental per year congress would giant secretary war authority lease nitrate plant terms would insure largest production nitrates entire property could begin function division aware never seemed appeal congress also gladly approve bill granting authority lease entire property production nitrates wish avoid building another dam public expense future operators provide required repay cost dam tile prevailing commercial rates interest difficulty considerably lessened think property made vehicle putting united states government indiscriminately private retail field power distribution nitrate sales practical application economy resources country calls conservation mean every resource developed full degree means none wasted conservation board working oil problem utmost importance future people age engines tile general application gasoline transportation secretary interior compelled lease oil lands osage indians market depressed future supply jeopardy area lands remaining public ownership small compared vast area private ownership natural resources public ownership immense present future value particularly trite minerals water power proper bureaus classifying resources end may conserved appropriate estimates submitted budget prosecution important work policy restrictive immigration maintained authority granted secretary labor give immediate preference learned professions experts essential new industries reuniting families expedited immigration naturalization laws might well codified economic life country rejected long accepted law limitation wage fund led pessimism despair doctrine perpetual poverty substituted american conception limit profits wages production doctrine optimism hope leads prosperity councils labor still darkened theory limiting individual production assurance permanent employment increasing numbers general management wage earner alike become emancipated doom entered new era industrial thought unleashed productive capacity individual worker increasing scale wages profits end yet application theory accounts widening distribution wealth discovery ever increase happiness prosperity people since 1922 increasing production increased wages general per cent certain selected trades run high per cent 38 per cent even boot shoe shops increase 5 per cent woolen mills per cent although industries prospered like others rise living costs period negligible figures represent real wage increases constructive economy requires government cooperate private interests eliminate waste arising industrial accidents item done reduce still reaches enormous proportions great suffering workman great loss country federal government continue solicitous care women wage earners efforts behalf public health reducing infant mortality improving bodily mental condition citizens marked change made civil service government past eight years relates increase salaries board actuaries retirement act shows report july 1 1921 average salary employees subject act june 30 1927 average salary corresponding increase six years nearly 53 per cent top generous increase made last session congress generally applicable federal employees another bill increasing pay certain branches postal service beyond large increase made three years ago raised average level making increase seven years 63 per cent well known upper brackets pay federal service much smaller private employment lower brackets ranging well much higher higher actual money paid privileges granted vacation 30 actual working days 5 weeks year additional time running departments high 30 days sick leave generous provisions retirement act body public servants ever occupied fortunate position bureau education department interior federal government acting informative advisory capacity rendered valuable service province belongs peculiarly states yet promotion education efficiency educational methods general responsibility federal government survey negro colleges universities united states completed bureau education funds provided institutions private sources present status negro higher education determined recommendations made advancement one numerous cooperative undertakings bureau following invitation association land grant colleges universities bureau education way survey agricultural colleges authorized congress purpose survey ascertain accomplishments status future objectives type educational training proposed undertake survey secondary schools educators insist timely essential laid public building program district columbia country large running hundreds millions dollars three important structures one annex already way one addition completed city washington country sites acquired many buildings course construction already completed plans work prepared order may carried forward rapidly possible greatest building program ever assumed nation contemplates structures utility beauty reaches completion people well served federal city supplied beautiful stately public buildings adorn capital world administration indian affairs receiving intensive study several years department interior able provide better supervision health education industrial advancement native race additional funds provided congress present cooperative arrangement existing bureau indian affairs public health service extended government responsibility american indian acknowledged annual increases appropriations fulfill obligations hasten time federal supervision affairs may properly safely terminated movement congress state legislatures extending responsibility indian affairs states encouraged complete participation indian economic life end desired 65 years negro population peculiar care solicitude national government progress made education professions wealth arts civilization affords one remarkable incidents period world history demonstrated ability partake advantages institutions benefit free independent existence whatever doubt may capacity assume status granted constitution union rapidly dissipated cooperation life nation constantly enlarging exploiting negro problem political ends abandoned protection increased states percentage population largest every encouragement extended development race colored people victims crime lynching late years somewhat decreased parts south already wholesome laws restraint punishment example might well followed states immediate remedial legislation federal government extend constitution guidance governor general stimson economic political conditions philippine islands raised standard never surpassed cooperation administration people islands complete harmonious would advantage relief double taxation could granted congress citizens business islands due terrific storm swept porto rico last september people island suffered large losses red cross war department went rescue property loss retrieved sugar tobacco citrus fruit coffee suffered damage first three largely look coffee growers need assistance extended strictly business basis careful investigation people porto rico asking charity desirable legal activities government consolidated supervision attorney general 1870 felt necessary create department justice purpose intervening period either legislation creating law officers departmental action additional legal positions supervision attorney general provided 900 condition harmful interest government 1870 corrected appropriate legislation order prosecute oil cases suggested congress enacted law providing appointment two special counsel pursued work signal ability recovering leased lands besides nearly money nearly property find hampered statute attorney general construes applying prohibiting appearing private clients department reason one compelled resign good result secured application rule counsel roberts consented take reappointment rule abrogated recommend passage amendment law creating office exempting general rule taking cases involving government country duly adopted eighteenth amendment object right advocate modification repeal meantime binding upon national state governments inhabitants federal enforcement bureau making every effort prevent violations especially smuggling manufacture transportation prosecute generally violations secure evidence bound continue policy terms constitution however obligation equally states exercise power executive legislative judicial police branches governments behalf enforcement federal government continue direction entitled to7the active cooperation states country midst era prosperity extensive peace permanent ever experienced reached position fail comprehend easily lost needs effort support less exalted places world shall permitted take case shall continue required spend days unremitting toil actions government must command confidence country without prosperity would lost must extend countries largest measure generosity moderation patience addition dealing justly well afford walk humbly end government keep open opportunity abundant life peace prosperity finalities methods easy influence nation become selfish degenerate test come united states country provided resources enlarge intellectual moral spiritual life issue hands people faith man god justification belief continuing success
congress united state ever assemble survey state union meet please prospect appear present time domestic field tranquility contentment harmonious relation management wage earner freedom industrial strife high record year prosperity foreign field peace good come mutual understanding knowledge problem short time ago appear ominous yield touch manifest friendship great wealth create enterprise industry save economy wide distribution among people go steady stream serve charity business world requirement existence pass beyond standard necessity region luxury enlarge production consume increase demand home expand commerce abroad country regard present satisfaction anticipate future optimism main source unexampled blessing lie integrity character american people great faith supplement mighty work able put trust trust government candor deal foreign government command respect confidence yet remarkable power would exert almost vain without constant cooperation careful administration federal government come period may fairly characterize conservation national resource wastefulness public business private enterprise displace constructive economy accomplish bring domestic foreign relation reign law rule force give way rule reason substitute vicious circle increase expenditure increase tax rate diminish profit charm circle diminish expenditure diminish tax rate increase profit four time make drastic revision internal revenue system abolish many tax substantially reduce almost others time result stimulation business increase taxable income profit surplus produce national debt pay much refund low rate savings interest constant economy enable u repeat satisfy process tax reduction sound healthful encouragement national income increase nearly 50 per cent estimate stand well method perform seem miracle leave much great percentage earnings hand taxpayer scarcely diminution government revenue constructive economy high degree corner stone prosperity fail continue action begin application economy public expenditure permanent must make repeated application economy surplus base tax revision time last june estimate show threatened deficit current fiscal year direction department begin save could present appropriation last tax reduction bring encouraging improvement business begin early october also increase revenue combination economy good time indicate surplus margin less percent expenditure make obvious treasury condition undertake increase expenditure make june 30 necessary therefore present session refrain new appropriation immediate outlay absolutely require provide new revenue otherwise shall reach end year unthinkable result unbalance budget first time term office face contingency certain congress would pass feel warranted approving legislation would involve u financial disgrace whole finance government satisfactory last year national debt reduce refund retirement second third liberty loan bring successful conclusion save year interest unpaid balance arrange maturity convenient carry permanent program enormous saving make expense legitimate public need government plant keep many improvement tinder way service fully man general efficiency operation increase enabled undertake many new enterprise among adjusted compensation veteran world war cost u year amortize liability civil service retirement fund increase expenditures river harbor include flood control public building 1928 spent adjustment war claim alien property example large list item turn domestic affair foreign relation likewise perceive peace progress sixth international conference american state hold havana last winter contribute well understanding cooperation among nation eleven important convention sign 71 resolution pass pursuant plan adopt government invite 20 nation hemisphere conference conciliation arbitration meet washington december 10 nation accepted expectation justify important progress make method resolve international difference mean arbitration year sign 11 new arbitration treaty 22 tinder negotiation destructive bloody revolution lately break nicaragua earnest repeat entreaty government dispatch marine force protect live interest citizen compose contend party send henry stimson former secretary war governor general philippine island secure agreement warfare cease national election hold peace restored party conscientiously carry agreement exception bandit later mostly surrender left country president diaz appoint brig frank mccoy united state army president election board include also one member political party free fair election hold work successfully party join request like cooperation country election four year hence refrain make commitment although country must gratify exhibition success appreciation nicaragua regain prosperity take long step direction peaceful difference chile peru sufficiently compose diplomatic relation resume exchange ambassador negotiation hopefully proceed write final adjustment difference dispute territory relation mexico satisfactory basis time since revolution many misunderstanding resolve frank friendly negotiation promise final adjustment unsettled question exceedingly gratify ambassador morrow able bring two neighboring country many interest common position confidence respect mutual sovereign right situation china month ago threaten call dispatch large additional force much compose nationalist government establish country promulgate new organic law announce program intend promote political economic welfare people recognize government encourage progress negotiate treaty restore china complete tariff autonomy guarantee citizen discrimination trade quarter increase force reduce pending congress recommendation settlement greek debt austrian debt comparatively small country afford generous rehabilitation country await settlement would also advantage trade could scarcely afford nation refuse relief austria seek congress already grant austria moratorium understood waive immediate payment begin debt basis extend country one important treaty ever lay senate united state 15 nation recently sign paris 44 nation declare intention adhere renounce war national policy agree resort peaceful mean adjustment international difference solemn declaration war positive adherence peace possible sovereign nation make supersede inalienable sovereign right duty national defense undertake commit u event mode action congress might decide wise ever treaty broken new standard world around rally inform enlightened opinion nation prevent government force hostile action temporary outbreak international animosity observance covenant simple straightforward promise peace world agreement ever negotiate among nation first duty government citizen foreigner within border preservation order unless duty meet government even eligible recognition among family nation advancement world civilization likewise dependent upon order among people different country term peace insure citizens infringement legal right home abroad preserve order liberty peace make law supreme army navy organize defensive purpose army could much reduce need increase new housing repair necessary tinder way program aviation put effect branch service navy accord generally accept standard deficient cruiser 10 comparatively new vessel 22 old 8 build evident renewal replacement must provide matter thoroughly canvass last session congress need restatement bill senate elimination time clause pass intention compete country build program necessary replacement meet need defense cost national defense stupendous increase past four year estimate expenditure 1930 make many item mostly dependent upon number defensive need increase number men army navy reach limit ought expend purpose wish repeat benefit timid suspicious country neither militaristic imperialistic many people home abroad constantly make charge one even solicitous u extend assistance foreign country assistance grant inevitable result foreign interest u refuse customary support protection interest would derogation sovereignty nation large foreign interest british empire france italy constantly solicitous interest doubt anyone would suppose country feel harbor toward militaristic imperialistic design small country certainly want anxious sovereignty respect entire influence behalf independence cuba stand witness adherence principle position government relative limitation armament result already secured development present time well know congress require restatement magnitude present system veteran relief without precedent result year service pension grant grand army lately survivor war time enter world war however congress depart usual pension system follow gove2rnment eleven year elapse since law first enact initiating system compensation rehabilitation hospitalization insurance disable world war dependent administration law concern relief difficult task safely state measure omit nothing desire deal generously humanely continue foster system provide facility necessary adequate care conception government pension roll honor roll include justly entitle benefit exclude others annual expenditure form veteran relief approximate increase year year doubtful peak expenditure reach even present legislation sonic time yet come amendment exist law suggest american legion veteran foreign war united state disable american veteran world war like organization may necessary administrative purpose order remove exist inequality present law make change sure recommendation may submit congress receive careful consideration vast expenditure make year every assurance increase great liberality exist law proposal additional legislation deal subject receive searching scrutiny congress familiar suggestion various public agency deal matter veteran relief consolidated one government department advantage plan seem apparent especially simplification administration find opportunity bring great uniformity application veteran relief recommend survey make proper committee congress deal subject order determine whether legislation secure consolidation desirable past year mark notable though uniform improvement agriculture general purchase power farm product volume production advance mean progress overcome price disparity agriculture plunge also increase efficiency part farmer confidence future agriculture livestock industry attain best balance many year prosper conspicuously dairyman beef producer poultryman receive substantially large return last year cotton although low price time last year produce great volume prospect cotton income favorable progress never uniform vast highly diversified agriculture industry cash grain hay tobacco potato bring somewhat small return year last present indication however gross farm income somewhat large crop year total corresponding figure still well result would secure year undue increase production certain crop particularly true potato sell unremunerative price loss direct result acreage present status agriculture although greatly improve year ago bespeaks need improvemen4 call determine effort farmer encourage assisted wise public policy government must continue alive need agriculture past eight year constructive legislation direct benefit agriculture adopt period department agriculture broaden reorganized insure great efficiency department lay great stress economic business phase agriculture lend every possible assistance cooperative marketing association regulatory research work segregate order field may serve effectively strongly commend field fact find research work department agriculture state experiment station department receive annually research 1921 addition fund pay state experimentation purpose purnell act constitute annual increase federal payment state agricultural experiment station amount appropriated 1921 program support research may wisely continue expand since 1921 appropriate nearly additional extension work sum increase next year authorization act development fundamental research regulation dissemination agricultural information distinct hell agriculture additional effort need surplus problem demand attention emphasize last message government assume responsibility normal time crop surplus clearly due overextend acreage government however provide reliable information guide private effort connection fundamental research prospective supply demand guide production marketing encouraged expenditure public fund bring new land search scrutiny long farmer face unsatisfactory price crop livestock produce land already cultivation every proper effort make put land us adapt reforestation land best suit timber production progress encouraged end forest taxation inquiry institute afford practical guide public policy improvement ba make graze regulation forest reserve protect range preserve soil erosion similar action urgently need protect public land overgrazed rapidly erode temporary expedient though sometimes capable appease demand moment permanently solve surplus problem might seriously aggravate hence put government directly business subsidy price fix allure promise political action substitute private initiative avoid government aid promote orderly marketing handling surplus clearly due weather seasonal condition begin create federal farm board consist able experience men empower advise producer association establish central agency stabilization corporation handle surplus seek wore economical mean merchandise aid producer secure return accord a14 product revolve loan fund provide necessary financing agency shall develop mean finance operation regularly constitute credit institution bill carry authority raise money loan otherwise necessary meet expense treasury surplus agriculture lag behind industry achieve unity effort modern economic life demand cooperative movement gradually build need organization harmony public interest therefore merit public encouragement important phase public policy relate agriculture lie within sphere state successive reduction federal tax relieve farmer direct tax national government state local levy become serious burden problem need immediate thorough study view correction early possible moment make largely state desirable government continue helpful attitude toward american business activity department commerce contribute largely present satisfactory position international trade reach annually slacken effort direction also important department assistance domestic commerce continue probably way government aid sound economic progress effectively cooperation business men reduce waste distribution continue progress civil aviation gratify demand airplane motor tax industry license inspection service department commerce capacity compulsory licensing provision air commerce act apply equipment personnel engage interstate foreign commerce federal license may procure anyone possess necessary qualification state legislation local airport regulation insurance requirement make license practically indispensable result uniformity regulation increase safety operation essential aeronautical development young men woman apply federal air pilot license permit 80 per cent apply past year national airway system exceed mile length mile light night operation provision make lighting mile current fiscal year equip equal mileage radio facility people serve route rapid growth air mail express passenger service new transportation medium daily become important factor commerce noteworthy development take place without governmental subsidy commercial passenger flight operate schedule reach mile per day next fortnight nation entertain nation world celebration anniversary first successful airplane flight credit achievement belongs citizen country orville wright desire repeat recommendation earlier message congress enact legislation necessary make permanent parcel post convention cuba facility american commerce measure equity cuba one class good country send parcel post without detriment trade attend pan american conference havana president cuba show marble statue make original memorial overturn storm erect cuban shore memory men perish destruction battleship maine testimony friendship appreciation cuban government people lie generously offer present united state assure pleasure accept location white house place large heavy structure therefore urge congress provide law locality set previous annual message suggest enactment law promote railroad consolidation view increase efficiency transportation lessen cost public consolidation make present law change vet provision act 1920 find fully adequate meet need method consolidation amendment design remedy defect consider length respective committee congress bill report late last session understand approval principle interstate commerce commission hop legislation may enact early date experience show interstate commerce law require definition clarification several respect point interstate commerce commission annual report congress promote public interest congress give early consideration recommendation make cost maintaining united state government merchant fleet steadily reduce establish american flag line foreign trade never exist mean promote commerce naval auxiliary sell private american capital operation within past year 14 line encouragement recent legislation pass congress give promise continue successful operation additional legislation time time may necessary promote future advancement private control cooperation post office department ship board contract make american steamship line carry mail already promise construction 15 20 new vessel gradual reestablishment american merchant marine private enterprise action national government beneficial shipping cost absorb considerable extent disposal unprofitable line operate ship board new law make market meanwhile policy maintain necessary strategic line government operation transfer private capital message last year express view lend encouragement good road principal point hemisphere south rio grande view change pan american union recently endorse country south great deal progress make road building others engineering feature often exact finance difficult country enter upon program road build ready contribute abundant experience make task easy accomplishment prefer go civil life accomplish end already furnish military naval adviser follow precedent could draw competent men source department agriculture provide southern neighbor request engineer adviser construction roads bridge private interest look favor upon reasonable loan sought country open main line travel assistance give especially project highway design connect country hemisphere thus facilitate intercourse closer relation among friendly relation extensive commercial intercourse western hemisphere south u cemented establishment extension route shall soon one key west cuba haiti santo domingo san juan connect another route trinidad another route key west canal zone connection make route across northern coast south america paramaribo give u circle around caribbean control additional connection make colon route run west coast south america far conception chile french air mail paramaribo run eastern coast south america air service already span continent lateral run mexico canada cover daily flight mile average cargo 15 000 pound river harbor improvement proceed vigor past year increase appropriation regular work besides expend flood control total appropriation year ohio river almost ready opening work missouri river way accordance mississippi flood law army engineer make investigation survey stream throughout country view flood control navigation waterpower irrigation barge line operate generous appropriation negotiation develop relative lawrence waterway secure large benefit waterways joint rate must establish railroad preferably agreement otherwise result congressional action recently pass several river harbor bill work ordered congress yet complete cost besides hundred million spend mississippi flood way see way expense river harbor legislation pass expenditure put effect would four five year away many year federal government commit wise policy reclamation irrigation meet failure due unwise selection project lack thorough soil survey could place sound business basis whole service incalculable benefit many state one would advocate abandonment program already commit provide construction new project authorize congress completion old project tax resource reclamation fund period year high cost improve equip farm add difficulty secure settler vacant farm federal project readjustment authorized reclamation relief act may 25 1926 give favorable term repayment settler new financial arrangement general prosperity irrigation project result increased collection department interior charge due reclamation fund nevertheless demand still small yearly payment project continue condition consideration connection propose new project several year congress consider erection dam colorado river irrigation domestic water purpose properly consider government function would incidental creation water power could use generate electricity private enterprise well fill field need government go unfortunate state interested water unable agree among nevertheless legislation give every possible safeguard present prospective right congress detail report special board appoint consider engineering economic feasibility project short summary see judge consider engineering problem meet somewhat increased cost previous estimate prefer black canyon site economic feature clear appear base conclusion many condition establish certainty far judge however summary conclusion appear sufficiently favorable feel warrant recommend measure protect right state discharge necessary government function leave electrical field private enterprise development method produce nitrate probably render plant less important purpose formerly tell still provide practical method make nitrate national defense farm fertilizer divide property two component part power nitrate plant would possible dispose power reserve right concern wish make nitrate use power might need purpose disposition power plant make return rental per year congress would giant secretary war authority lease nitrate plant term would insure large production nitrate entire property could begin function division aware never seem appeal congress also gladly approve bill grant authority lease entire property production nitrate wish avoid building another dam public expense future operator provide require repay cost dam tile prevail commercial rate interest difficulty considerably lessen think property make vehicle put united state government indiscriminately private retail field power distribution nitrate sale practical application economy resource country call conservation mean every resource develop full degree mean none waste conservation board work oil problem utmost importance future people age engine tile general application gasoline transportation secretary interior compel lease oil land osage indian market depress future supply jeopardy area land remain public ownership small compare vast area private ownership natural resource public ownership immense present future value particularly trite mineral water power proper bureau classify resource end may conserve appropriate estimate submit budget prosecution important work policy restrictive immigration maintain authority grant secretary labor give immediate preference learn profession expert essential new industry reunite family expedite immigration naturalization law might well codify economic life country reject long accepted law limitation wage fund lead pessimism despair doctrine perpetual poverty substitute american conception limit profit wage production doctrine optimism hope lead prosperity council labor still darken theory limit individual production assurance permanent employment increase number general management wage earner alike become emancipated doom enter new era industrial thought unleash productive capacity individual worker increase scale wage profit end yet application theory account widen distribution wealth discovery ever increase happiness prosperity people since 1922 increase production increase wage general per cent certain select trade run high per cent 38 per cent even boot shoe shop increase 5 per cent woolen mill per cent although industry prosper like others rise living cost period negligible figure represent real wage increase constructive economy require government cooperate private interest eliminate waste arise industrial accident item do reduce still reach enormous proportion great suffer workman great loss country federal government continue solicitous care woman wage earner effort behalf public health reduce infant mortality improve bodily mental condition citizen mark change make civil service government past eight year relate increase salary board actuaries retirement act show report july 1 1921 average salary employee subject act june 30 1927 average salary corresponding increase six year nearly 53 per cent top generous increase make last session congress generally applicable federal employee another bill increase pay certain branch postal service beyond large increase make three year ago raise average level make increase seven year 63 per cent well know upper bracket pay federal service much small private employment low bracket range well much high high actual money pay privileges grant vacation 30 actual work day 5 week year additional time run department high 30 day sick leave generous provision retirement act body public servant ever occupy fortunate position bureau education department interior federal government act informative advisory capacity render valuable service province belong peculiarly state yet promotion education efficiency educational method general responsibility federal government survey negro college university united state complete bureau education fund provide institution private source present status negro high education determine recommendation make advancement one numerous cooperative undertaking bureau follow invitation association land grant college university bureau education way survey agricultural college authorize congress purpose survey ascertain accomplishment status future objective type educational training propose undertake survey secondary school educator insist timely essential lay public building program district columbia country large run hundred million dollar three important structure one annex already way one addition complete city washington country sit acquire many building course construction already complete plan work prepared order may carry forward rapidly possible great building program ever assume nation contemplates structure utility beauty reach completion people well serve federal city supply beautiful stately public building adorn capital world administration indian affair receive intensive study several year department interior able provide good supervision health education industrial advancement native race additional fund provide congress present cooperative arrangement exist bureau indian affair public health service extend government responsibility american indian acknowledge annual increase appropriation fulfill obligation hasten time federal supervision affair may properly safely terminate movement congress state legislature extend responsibility indian affair state encourage complete participation indian economic life end desire 65 year negro population peculiar care solicitude national government progress make education profession wealth art civilization affords one remarkable incident period world history demonstrate ability partake advantage institution benefit free independent existence whatever doubt may capacity assume status grant constitution union rapidly dissipate cooperation life nation constantly enlarge exploit negro problem political end abandon protection increase state percentage population large every encouragement extend development race color people victim crime lynch late year somewhat decrease part south already wholesome law restraint punishment example might well follow state immediate remedial legislation federal government extend constitution guidance governor general stimson economic political condition philippine island raise standard never surpass cooperation administration people islands complete harmonious would advantage relief double taxation could grant congress citizen business island due terrific storm sweep porto rico last september people island suffer large loss red cross war department go rescue property loss retrieve sugar tobacco citrus fruit coffee suffer damage first three largely look coffee grower need assistance extend strictly business basis careful investigation people porto rico ask charity desirable legal activity government consolidate supervision attorney general 1870 felt necessary create department justice purpose intervening period either legislation create law officer departmental action additional legal position supervision attorney general provide 900 condition harmful interest government 1870 correct appropriate legislation order prosecute oil case suggest congress enact law provide appointment two special counsel pursue work signal ability recover lease land besides nearly money nearly property find hamper statute attorney general construes apply prohibit appear private client department reason one compel resign good result secure application rule counsel roberts consent take reappointment rule abrogate recommend passage amendment law create office exempt general rule take case involve government country duly adopt eighteenth amendment object right advocate modification repeal meantime bind upon national state government inhabitants federal enforcement bureau make every effort prevent violation especially smuggle manufacture transportation prosecute generally violation secure evidence bound continue policy term constitution however obligation equally state exercise power executive legislative judicial police branch government behalf enforcement federal government continue direction entitle to7the active cooperation state country midst era prosperity extensive peace permanent ever experience reach position fail comprehend easily lose need effort support less exalted place world shall permit take case shall continue require spend day unremitting toil action government must command confidence country without prosperity would lose must extend country large measure generosity moderation patience addition deal justly well afford walk humbly end government keep open opportunity abundant life peace prosperity finality method easy influence nation become selfish degenerate test come united state country provide resource enlarge intellectual moral spiritual life issue hand people faith man god justification belief continue success