To the Senate and House of Representatives: I have the honor to comply with the requirement of the Constitution that I should lay before the Congress information as to the state of the Union, and recommend consideration of such measures as are necessary and expedient. Substantial progress has been made during the year in national peace and security; the fundamental strength of the Nation's economic life is unimpaired; education and scientific discovery have made advances; our country is more alive to its problems of moral and spiritual welfare. ECONOMIC SITUATION During the past 12 months we have suffered with other Nations from economic depression. The origins of this depression lie to some extent within our own borders through a speculative period which diverted capital and energy into speculation rather than constructive enterprise. Had overspeculation in securities been the only force operating, we should have seen recovery many months ago, as these particular dislocations have generally readjusted themselves. Other deep-seated causes have been in action, however, chiefly the world-wide overproduction beyond even the demand of prosperous times for such important basic commodities as wheat, rubber, coffee, sugar, copper, silver, zinc, to some extent cotton, and other raw materials. The cumulative effects of demoralizing price falls of these important commodities in the process of adjustment of production to world consumption have produced financial crises in many countries and have diminished the buying power of these countries for imported goods to a degree which extended the difficulties farther afield by creating unemployment in all the industrial nations. The political agitation in Asia; revolutions in South America and political unrest in some European States; the methods of sale by Russia of her increasing agricultural exports to European markets; and our own drought--have all contributed to prolong and deepen the depression. In the larger view the major forces of the depression now lie outside of the United States, and our recuperation has been retarded by the unwarranted degree of fear and apprehension created by these outside forces. The extent of the depression is indicated by the following approximate percentages of activity during the past three months as compared with the highly prosperous year of 1928: Value of department-store sales 93% of 1928 
Volume of manufacturing production 80% of 1928 
Volume of mineral production 90% of 1928 
Volume of factory employment 84% of 1928 
Total of bank deposits 105% of 1928 
Wholesale prices--all commodities 83% of 1928 
Cost of living 94% of 1928 ........................................................................... Various other indexes indicate total decrease of activity from 1928 of from 15 to 20 per cent. There are many factors which give encouragement for the future. The fact that we are holding from 80 to 85 per cent of our normal activities and incomes; that our major financial and industrial institutions have come through the storm unimpaired; that price levels of major commodities have remained approximately stable for some time; that a number of industries are showing signs of increasing demand; that the world at large is readjusting itself to the situation; all reflect grounds for confidence. We should remember that these occasions have been met many times before, that they are but temporary, that our country is to-day stronger and richer in resources, in equipment, in skill, than ever in its history. We are in an extraordinary degree self-sustaining, we will overcome world influences and will lead the march of prosperity as we have always done hitherto. Economic depression can not be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body--the producers and consumers themselves. Recovery can be expedited and its effects mitigated by cooperative action. That cooperation requires that every individual should sustain faith and courage; that each should maintain his self-reliance; that each and every one should search for methods of improving his business or service; that the vast majority whose income is unimpaired should not hoard out of fear but should pursue their normal living and recreations; that each should seek to assist his neighbors who may be less fortunate; that each industry should assist its own employees; that each community and each State should assume its full responsibilities for organization of employment and relief of distress with that sturdiness and independence which built a great Nation. Our people are responding to these impulses in remarkable degree. The best contribution of government lies in encouragement of this voluntary cooperation in the community. The Government, National, State, and local, can join with the community in such programs and do its part. A year ago I, together with other officers of the Government, initiated extensive cooperative measures throughout the country. The first of these measures was an agreement of leading employers to maintain the standards of wages and of labor leaders to use their influence against strife. In a large sense these undertakings have been adhered to and we have not witnessed the usual reductions of wages which have always heretofore marked depressions. The index of union wage scales shows them to be today fully up to the level of any of the previous three years. In consequence the buying power of the country has been much larger than would otherwise have been the case. Of equal importance the Nation has had unusual peace in industry and freedom from the public disorder which has characterized previous depressions. The second direction of cooperation has been that our governments, National, State, and local, the industries and business so distribute employment as to give work to the maximum number of employees. The third direction of cooperation has been to maintain and even extend construction work and betterments in anticipation of the future. It has been the universal experience in previous depressions that public works and private construction have fallen off rapidly with the general tide of depression. On this occasion, however, the increased authorization and generous appropriations by the Congress and the action of States and municipalities have resulted in the expansion of public construction to an amount even above that in the most prosperous years. In addition the cooperation of public utilities, railways, and other large organizations has been generously given in construction and betterment work in anticipation of future need. The Department of Commerce advises me that as a result, the volume of this type of construction work, which amounted to roughly $6,300,000,000 in 1929, instead of decreasing will show a total of about $7,000,000,000 for 1930. There has, of course, been a substantial decrease in the types of construction which could not be undertaken in advance of need. The fourth direction of cooperation was the organization in such States and municipalities, as was deemed necessary, of committees to organize local employment, to provide for employment agencies, and to effect relief of distress. The result of magnificent cooperation throughout the country has been that actual suffering has been kept to a minimum during the past 12 months, and our unemployment has been far less in proportion than in other large industrial countries. Some time ago it became evident that unemployment would continue over the winter and would necessarily be added to from seasonal causes and that the savings of workpeople would be more largely depleted. We have as a Nation a definite duty to see that no deserving person in our country suffers from hunger or cold. I therefore set up a more extensive organization to stimulate more intensive cooperation throughout the country. There has been a most gratifying degree of response, from governors, mayors, and other public officials, from welfare organizations, and from employers in concerns both large and small. The local communities through their voluntary agencies have assumed the duty of relieving individual distress and are being generously supported by the public. The number of those wholly out of employment seeking for work was accurately determined by the census last April as about 2,500,000. The Department of Labor index of employment in the larger trades shows some decrease in employment since that time. The problem from a relief point of view is somewhat less than the published estimates of the number of unemployed would indicate. The intensive community and individual efforts in providing special employment outside the listed industries are not reflected in the statistical indexes and tend to reduce such published figures. Moreover, there is estimated to be a constant figure at all times of nearly 1,000,000 unemployed who are not without annual income but temporarily idle in the shift from one job to another. We have an average of about three breadwinners to each two families, so that every person unemployed does not represent a family without income. The view that the relief problems are less than the gross numbers would indicate is confirmed by the experience of several cities, which shows that the number of families in distress represents from 10 to 20 per cent of the number of the calculated unemployed. This is not said to minimize the very real problem which exists but to weigh its actual proportions. As a contribution to the situation the Federal Government is engaged upon the greatest program of waterway, harbor, flood control, public building, highway, and airway improvement in all our history. This, together with loans to merchant shipbuilders, improvement of the Navy and in military aviation, and other construction work of the Government will exceed $520,000,000 for this fiscal year. This compares with $253,000,000 in the fiscal year 1928. The construction works already authorized and the continuation of policies in Government aid will require a continual expenditure upwards of half a billion dollars annually. I favor still further temporary expansion of these activities in aid to unemployment during this winter. The Congress will, however, have presented to it numbers of projects, some of them under the guise of, rather than the reality of, their usefulness in the increase of employment during the depression. There are certain commonsense limitations upon any expansions of construction work. The Government must not undertake works that are not of sound economic purpose and that have not been subject to searching technical investigation, and which have not been given adequate consideration by the Congress. The volume of construction work in the Government is already at the maximum limit warranted by financial prudence as a continuing policy. To increase taxation for purposes of construction work defeats its own purpose, as such taxes directly diminish employment in private industry. Again any kind of construction requires, after its authorization, a considerable time before labor can be employed in which to make engineering, architectural, and legal preparations. Our immediate problem is the increase of employment for the next six months, and new plans which do not produce such immediate result or which extend commitments beyond this period are not warranted. The enlarged rivers and harbors, public building, and highway plans authorized by the Congress last session, however, offer an opportunity for assistance by the temporary acceleration of construction of these programs even faster than originally planned, especially if the technical requirements of the laws which entail great delays could be amended in such fashion as to speed up acquirements of land and the letting of contracts. With view, however, to the possible need for acceleration, we, immediately upon receiving those authorities from the Congress five months ago, began the necessary technical work in preparation for such possible eventuality. I have canvassed the departments of the Government as to the maximum amount that can be properly added to our present expenditure to accelerate all construction during the next six months, and I feel warranted in asking the Congress for an appropriation of from $100,000,000 to $150,000,000 to provide such further employment in this emergency. In connection therewith we need some authority to make enlarged temporary advances of Federal-highway aid to the States. I recommend that this appropriation be made distributable to the different departments upon recommendation of a committee of the Cabinet and approval by the President. Its application to works already authorized by the Congress assures its use in directions of economic importance and to public welfare. Such action will imply an expenditure upon construction of all kinds of over $650,000,000 during the next twelve months. AGRICULTURE The world-wide depression has affected agriculture in common with all other industries. The average price of farm produce has fallen to about 80 per cent of the levels of 1928. This average is, however, greatly affected by wheat and cotton, which have participated in world-wide overproduction and have fallen to about 60 per cent of the average price of the year 1928. Excluding these commodities, the prices of all other agricultural products are about 84 per cent of those of 1928. The average wholesale prices of other primary goods, such as nonferrous metals, have fallen to 76 per cent of 1928. The price levels of our major agricultural commodities are, in fact, higher than those in other principal producing countries, due to the combined result of the tariff and the operations of the Farm Board. For instance, wheat prices at Minneapolis are about 30 per cent higher than at Winnipeg, and at Chicago they are about 20 per cent higher than at Buenos Aires. Corn prices at Chicago are over twice as high as at Buenos Aires. Wool prices average more than 80 per cent higher in this country than abroad, and butter is 30 per cent higher in New York City than in Copenhagen. Aside from the misfortune to agriculture of the world-wide depression we have had the most severe drought. It has affected particularly the States bordering on the Potomac, Ohio, and Lower Mississippi Rivers, with some areas in Montana, Kansas, Oklahoma, and Texas. It has found its major expression in the shortage of pasturage and a shrinkage in the corn crop from an average of about 2,800,000,000 bushels to about 2,090,000,000 bushels. On August 14 I called a conference of the governors of the most acutely affected States, and as a result of its conclusions I appointed a national committee comprising the heads of the important Federal agencies under the chairmanship of the Secretary of Agriculture. The governors in turn have appointed State committees representative of the farmers, bankers, business men, and the Red Cross, and subsidiary committees have been established in most of the acutely affected counties. Railway rates were reduced on feed and livestock in and out of the drought areas, and over 50,000 cars of such products have been transported under these reduced rates. The Red Cross established a preliminary fund of $5,000,000 for distress relief purposes and established agencies for its administration in each county. Of this fund less than $500,000 has been called for up to this time as the need will appear more largely during the winter. The Federal Farm Loan Board has extended its credit facilities, and the Federal Farm Board has given financial assistance to all affected cooperatives. In order that the Government may meet its full obligation toward our countrymen in distress through no fault of their own, I recommend that an appropriation should be made to the Department of Agriculture to be loaned for the purpose of seed and feed for animals. Its application should as hitherto in such loans be limited to a gross amount to any one individual, and secured upon the crop. The Red Cross can relieve the cases of individual distress by the sympathetic assistance of our people. FINANCES OF THE GOVERNMENT I shall submit the detailed financial position of the Government with recommendations in the usual Budget message. I will at this time, however, mention that the Budget estimates of receipts and expenditures for the current year were formulated by the Treasury and the Budget Bureau at a time when it was impossible to forecast the severity of the business depression and have been most seriously affected by it. At that time a surplus of about $123,000,000 was estimated for this fiscal year and tax reduction which affected the fiscal year to the extent of $75,000,000 was authorized by the Congress, thus reducing the estimated surplus to about $48,000,000. Closely revised estimates now made by the Treasury and the Bureau of the Budget of the tax, postal, and other receipts for the current fiscal year indicate a decrease of about $430,000,000 from the estimate of a year ago, of which about $75,000,000 is due to tax reduction, leaving about $355,000,000 due to the depression. Moreover, legislation enacted by Congress subsequent to the submission of the Budget enlarging Federal construction work to expand employment and for increase in veterans' services and other items, have increased expenditures during the current fiscal year by about $225,000,000. Thus the decrease of $430,000,000 in revenue and the increase of $225,000,000 in expenditure adversely change the original Budget situation by about $655,000,000. This large sum is offset by the original estimated surplus a year ago of about $123,000,000, by the application of $185,000,000 of interest payments upon the foreign debt to current expenditures, by arrangements of the Farm Board through repayments, etc., in consequence of which they reduced their net cash demands upon the Treasury by $100,000,000 in this period, and by about $67,000,000 economies and deferments brought about in the Government, thus reducing the practical effect of the change in the situation to an estimated deficit of about $180,000,000 for the present fiscal year. I shall make suggestions for handling the present-year deficit in the Budget message, but I do not favor encroachment upon the statutory reduction of the public debt. While it will be necessary in public interest to further increase expenditures during the current fiscal year in aid to unemployment by speeding up construction work and aid to the farmers affected by the drought, I can not emphasize too strongly the absolute necessity to defer any other plans for increase of Government expenditures. The Budget for 1932 fiscal year indicates estimated expenditure of about $4,054,000,000, including postal deficit. The receipts are estimated at about $4,085,000,000 if the temporary tax reduction of last year be discontinued, leaving a surplus of only about $30,000,000. Most rigid economy is therefore necessary to avoid increase in taxes. NATIONAL DEFENSE Our Army and Navy are being maintained at a high state of efficiency, under officers of high training and intelligence, supported by a devoted personnel of the rank and file. The London naval treaty has brought important economies in the conduct of the Navy. The Navy Department will lay before the committees of the Congress recommendations for a program of authorization of new construction which should be initiated in the fiscal year of 1932. LEGISLATION This is the last session of the Seventy-first Congress. During its previous sittings it has completed a very large amount of important legislation, notably: The establishment of the Federal Farm Board; fixing congressional reapportionment; revision of the tariff, including the flexible provisions and a reorganization of the Tariff Commission; reorganization of the Radio Commission; reorganization of the Federal Power Commission; expansion of Federal prisons; reorganization of parole and probation system in Federal prisons; expansion of veterans' hospitals; establishment of disability allowances to veterans; consolidation of veteran activities; consolidation and strengthening of prohibition enforcement activities in the Department of Justice; organization of a Narcotics Bureau; large expansion of rivers and harbors improvements; substantial increase in Federal highways; enlargement of public buildings construction program; and the ratification of the London naval treaty. The Congress has before it legislation partially completed in the last sitting in respect to Muscle Shoals, bus regulation, relief of congestion in the courts, reorganization of border patrol in prevention of smuggling, law enforcement in the District of Columbia, and other subjects. 
It is desirable that these measures should be completed. The short session does not permit of extensive legislative programs, but there are a number of questions which, if time does not permit action, I recommend should be placed in consideration by the Congress, perhaps through committees cooperating in some instances with the Federal departments, with view to preparation for subsequent action. Among them are the following subjects: ELECTRICAL POWER I have in a previous message recommended effective regulation of interstate electrical power. Such regulation should preserve the independence and responsibility of the States. RAILWAYS We have determined upon a national policy of consolidation of the railways as a necessity of more stable and more economically operated transportation. Further legislation is necessary to facilitate such consolidation. In the public interest we should strengthen the railways that they may meet our future needs. ANTITRUST LAWS I recommend that the Congress institute an inquiry into some aspects of the economic working of these laws. I do not favor repeal of the Sherman Act. The prevention of monopolies is of most vital public importance. Competition is not only the basis of protection to the consumer but is the incentive to progress. However, the interpretation of these laws by the courts, the changes in business, especially in the economic effects upon those enterprises closely related to the use of the natural resources of the country, make such an inquiry advisable. The producers of these materials assert that certain unfortunate results of wasteful and destructive use of these natural resources together with a destructive competition which impoverishes both operator and worker can not be remedied because of the prohibitive interpretation of the antitrust laws. The well-known condition of the bituminous coal industry is an illustration. The people have a vital interest in the conservation of their natural resources; in the prevention of wasteful practices; in conditions of destructive competition which may impoverish the producer and the wage earner; and they have an equal interest in maintaining adequate competition. I therefore suggest that an inquiry be directed especially to the effect of the workings of the antitrust laws in these particular fields to determine if these evils can be remedied without sacrifice of the fundamental purpose of these laws. CAPITAL-GAINS TAX It is urged by many thoughtful citizens that the peculiar economic effect of the income tax on so-called capital gains at the present rate is to enhance speculative inflation and likewise impede business recovery. I believe this to be the case and I recommend that a study be made of the economic effects of this tax and of its relation to the general structure of our income tax law. IMMIGRATION There is need for revision of our immigration laws upon a more limited and more selective basis, flexible to the needs of the country. Under conditions of current unemployment it is obvious that persons coming to the United States seeking work would likely become either a direct or indirect public charge. As a temporary measure the officers issuing visas to immigrants have been, in pursuance of the law, instructed to refuse visas to applicants likely to fall into this class. As a result the visas issued have decreased from an average of about 24,000 per month prior to restrictions to a rate of about 7,000 during the last month. These are largely preferred persons under the law. Visas from Mexico are about 250 per month compared to about 4,000 previous to restrictions. The whole subject requires exhaustive reconsideration. DEPORTATION OF ALIEN CRIMINALS I urge the strengthening of our deportation laws so as to more fully rid ourselves of criminal aliens. Furthermore, thousands of persons have entered the country in violation of the immigration laws. The very method of their entry indicates their objectionable character, and our law-abiding foreign-born residents suffer in consequence. I recommend that the Congress provide methods of strengthening the Government to correct this abuse. POST OFFICE Due to deferment of Government building over many years, previous administrations had been compelled to enter upon types of leases for secondary facilities in large cities, some of which were objectionable as representing too high a return upon the value of the property. To prevent the occasion for further uneconomic leasing I recommend that the Congress authorize the building by the Government of its own facilities. VETERANS The Nation has generously expanded its care for veterans. The consolidation of all veterans' activities into the Veterans' Administration has produced substantial administrative economies. The consolidation also brings emphasis to the inequalities in service and allowances. The whole subject is under study by the administrator, and I recommend it should also be examined by the committees of the Congress. SOCIAL SERVICE I urge further consideration by the Congress of the recommendations I made a year ago looking to the development through temporary Federal aid of adequate State and local services for the health of children and the further stamping out of communicable disease, particularly in the rural sections. The advance of scientific discovery, methods, and social thought imposes a new vision in these matters. The drain upon the Federal Treasury is comparatively small. The results both economic and moral are of the utmost importance. GENERAL It is my belief that after the passing of this depression, when we can examine it in retrospect, we shall need to consider a number of other questions as to what action may be taken by the Government to remove Possible governmental influences which make for instability and to better organize mitigation of the effect of depression. It is as yet too soon to constructively formulate such measures. There are many administrative subjects, such as departmental reorganization, extension of the civil service, readjustment of the postal rates, etc., which at some appropriate time require the attention of the Congress. FOREIGN RELATIONS Our relations with foreign countries have been maintained upon a high basis of cordiality and good will. During the past year the London naval pact was completed, approved by the Senate, and ratified by the governments concerned. By this treaty we have abolished competition in the building of warships, have established the basis of parity of the United States with the strongest of foreign powers, and have accomplished a substantial reduction in war vessels. During the year there has been an extended political unrest in the world. Asia continues in disturbed condition, and revolutions have taken place in Brazil, Argentina, Peru, and Bolivia. Despite the jeopardy to our citizens and their property which naturally arises in such circumstances, we have, with the cooperation of the governments concerned, been able to meet all such instances without friction. We have resumed normal relations with the new Governments of Brazil, Argentina, Peru, and Bolivia immediately upon evidence that they were able to give protection to our citizens and their property, and that they recognized their international obligations. A commission which was supported by the Congress has completed its investigation and reported upon our future policies in respect to Haiti and proved of high value in securing the acceptance of these policies. An election has been held and a new government established. We have replaced our high commissioner by a minister and have begun the gradual withdrawal of our activities with view to complete retirement at the expiration of the present treaty in 1935. A number of arbitration and conciliation treaties have been completed or negotiated during the year, and will be presented for approval by the Senate. I shall, in a special message, lay before the Senate the protocols covering the statutes of the World Court which have been revised to accord with the sense of previous Senate reservations. HERBERT HOOVER 
The White House, 
December 2, 1930.
To the Senate and House of Representatives: I have the honor to comply with the requirement of the Constitution that I should lay before the Congress information as to the state of the Union, and recommend consideration of such measures as are necessary and expedient. Substantial progress has been made during the year in national peace and security; the fundamental strength of the Nation's economic life is unimpaired; education and scientific discovery have made advances; our country is more alive to its problems of moral and spiritual welfare. ECONOMIC SITUATION During the past 12 months we have suffered with other Nations from economic depression. The origins of this depression lie to some extent within our own borders through a speculative period which diverted capital and energy into speculation rather than constructive enterprise. Had overspeculation in securities been the only force operating, we should have seen recovery many months ago, as these particular dislocations have generally readjusted themselves. Other deep-seated causes have been in action, however, chiefly the world-wide overproduction beyond even the demand of prosperous times for such important basic commodities as wheat, rubber, coffee, sugar, copper, silver, zinc, to some extent cotton, and other raw materials. The cumulative effects of demoralizing price falls of these important commodities in the process of adjustment of production to world consumption have produced financial crises in many countries and have diminished the buying power of these countries for imported goods to a degree which extended the difficulties farther afield by creating unemployment in all the industrial nations. The political agitation in Asia; revolutions in South America and political unrest in some European States; the methods of sale by Russia of her increasing agricultural exports to European markets; and our own drought--have all contributed to prolong and deepen the depression. In the larger view the major forces of the depression now lie outside of the United States, and our recuperation has been retarded by the unwarranted degree of fear and apprehension created by these outside forces. The extent of the depression is indicated by the following approximate percentages of activity during the past three months as compared with the highly prosperous year of 1928: Value of department-store sales 93% of 1928 Volume of manufacturing production 80% of 1928 Volume of mineral production 90% of 1928 Volume of factory employment 84% of 1928 Total of bank deposits 105% of 1928 Wholesale prices--all commodities 83% of 1928 Cost of living 94% of 1928 ........................................................................... Various other indexes indicate total decrease of activity from 1928 of from 15 to 20 per cent. There are many factors which give encouragement for the future. The fact that we are holding from 80 to 85 per cent of our normal activities and incomes; that our major financial and industrial institutions have come through the storm unimpaired; that price levels of major commodities have remained approximately stable for some time; that a number of industries are showing signs of increasing demand; that the world at large is readjusting itself to the situation; all reflect grounds for confidence. We should remember that these occasions have been met many times before, that they are but temporary, that our country is to-day stronger and richer in resources, in equipment, in skill, than ever in its history. We are in an extraordinary degree self-sustaining, we will overcome world influences and will lead the march of prosperity as we have always done hitherto. Economic depression can not be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body--the producers and consumers themselves. Recovery can be expedited and its effects mitigated by cooperative action. That cooperation requires that every individual should sustain faith and courage; that each should maintain his self-reliance; that each and every one should search for methods of improving his business or service; that the vast majority whose income is unimpaired should not hoard out of fear but should pursue their normal living and recreations; that each should seek to assist his neighbors who may be less fortunate; that each industry should assist its own employees; that each community and each State should assume its full responsibilities for organization of employment and relief of distress with that sturdiness and independence which built a great Nation. Our people are responding to these impulses in remarkable degree. The best contribution of government lies in encouragement of this voluntary cooperation in the community. The Government, National, State, and local, can join with the community in such programs and do its part. A year ago I, together with other officers of the Government, initiated extensive cooperative measures throughout the country. The first of these measures was an agreement of leading employers to maintain the standards of wages and of labor leaders to use their influence against strife. In a large sense these undertakings have been adhered to and we have not witnessed the usual reductions of wages which have always heretofore marked depressions. The index of union wage scales shows them to be today fully up to the level of any of the previous three years. In consequence the buying power of the country has been much larger than would otherwise have been the case. Of equal importance the Nation has had unusual peace in industry and freedom from the public disorder which has characterized previous depressions. The second direction of cooperation has been that our governments, National, State, and local, the industries and business so distribute employment as to give work to the maximum number of employees. The third direction of cooperation has been to maintain and even extend construction work and betterments in anticipation of the future. It has been the universal experience in previous depressions that public works and private construction have fallen off rapidly with the general tide of depression. On this occasion, however, the increased authorization and generous appropriations by the Congress and the action of States and municipalities have resulted in the expansion of public construction to an amount even above that in the most prosperous years. In addition the cooperation of public utilities, railways, and other large organizations has been generously given in construction and betterment work in anticipation of future need. The Department of Commerce advises me that as a result, the volume of this type of construction work, which amounted to roughly $6,300,000,000 in 1929, instead of decreasing will show a total of about $7,000,000,000 for 1930. There has, of course, been a substantial decrease in the types of construction which could not be undertaken in advance of need. The fourth direction of cooperation was the organization in such States and municipalities, as was deemed necessary, of committees to organize local employment, to provide for employment agencies, and to effect relief of distress. The result of magnificent cooperation throughout the country has been that actual suffering has been kept to a minimum during the past 12 months, and our unemployment has been far less in proportion than in other large industrial countries. Some time ago it became evident that unemployment would continue over the winter and would necessarily be added to from seasonal causes and that the savings of workpeople would be more largely depleted. We have as a Nation a definite duty to see that no deserving person in our country suffers from hunger or cold. I therefore set up a more extensive organization to stimulate more intensive cooperation throughout the country. There has been a most gratifying degree of response, from governors, mayors, and other public officials, from welfare organizations, and from employers in concerns both large and small. The local communities through their voluntary agencies have assumed the duty of relieving individual distress and are being generously supported by the public. The number of those wholly out of employment seeking for work was accurately determined by the census last April as about 2,500,000. The Department of Labor index of employment in the larger trades shows some decrease in employment since that time. The problem from a relief point of view is somewhat less than the published estimates of the number of unemployed would indicate. The intensive community and individual efforts in providing special employment outside the listed industries are not reflected in the statistical indexes and tend to reduce such published figures. Moreover, there is estimated to be a constant figure at all times of nearly 1,000,000 unemployed who are not without annual income but temporarily idle in the shift from one job to another. We have an average of about three breadwinners to each two families, so that every person unemployed does not represent a family without income. The view that the relief problems are less than the gross numbers would indicate is confirmed by the experience of several cities, which shows that the number of families in distress represents from 10 to 20 per cent of the number of the calculated unemployed. This is not said to minimize the very real problem which exists but to weigh its actual proportions. As a contribution to the situation the Federal Government is engaged upon the greatest program of waterway, harbor, flood control, public building, highway, and airway improvement in all our history. This, together with loans to merchant shipbuilders, improvement of the Navy and in military aviation, and other construction work of the Government will exceed $520,000,000 for this fiscal year. This compares with $253,000,000 in the fiscal year 1928. The construction works already authorized and the continuation of policies in Government aid will require a continual expenditure upwards of half a billion dollars annually. I favor still further temporary expansion of these activities in aid to unemployment during this winter. The Congress will, however, have presented to it numbers of projects, some of them under the guise of, rather than the reality of, their usefulness in the increase of employment during the depression. There are certain commonsense limitations upon any expansions of construction work. The Government must not undertake works that are not of sound economic purpose and that have not been subject to searching technical investigation, and which have not been given adequate consideration by the Congress. The volume of construction work in the Government is already at the maximum limit warranted by financial prudence as a continuing policy. To increase taxation for purposes of construction work defeats its own purpose, as such taxes directly diminish employment in private industry. Again any kind of construction requires, after its authorization, a considerable time before labor can be employed in which to make engineering, architectural, and legal preparations. Our immediate problem is the increase of employment for the next six months, and new plans which do not produce such immediate result or which extend commitments beyond this period are not warranted. The enlarged rivers and harbors, public building, and highway plans authorized by the Congress last session, however, offer an opportunity for assistance by the temporary acceleration of construction of these programs even faster than originally planned, especially if the technical requirements of the laws which entail great delays could be amended in such fashion as to speed up acquirements of land and the letting of contracts. With view, however, to the possible need for acceleration, we, immediately upon receiving those authorities from the Congress five months ago, began the necessary technical work in preparation for such possible eventuality. I have canvassed the departments of the Government as to the maximum amount that can be properly added to our present expenditure to accelerate all construction during the next six months, and I feel warranted in asking the Congress for an appropriation of from $100,000,000 to $150,000,000 to provide such further employment in this emergency. In connection therewith we need some authority to make enlarged temporary advances of Federal-highway aid to the States. I recommend that this appropriation be made distributable to the different departments upon recommendation of a committee of the Cabinet and approval by the President. Its application to works already authorized by the Congress assures its use in directions of economic importance and to public welfare. Such action will imply an expenditure upon construction of all kinds of over $650,000,000 during the next twelve months. AGRICULTURE The world-wide depression has affected agriculture in common with all other industries. The average price of farm produce has fallen to about 80 per cent of the levels of 1928. This average is, however, greatly affected by wheat and cotton, which have participated in world-wide overproduction and have fallen to about 60 per cent of the average price of the year 1928. Excluding these commodities, the prices of all other agricultural products are about 84 per cent of those of 1928. The average wholesale prices of other primary goods, such as nonferrous metals, have fallen to 76 per cent of 1928. The price levels of our major agricultural commodities are, in fact, higher than those in other principal producing countries, due to the combined result of the tariff and the operations of the Farm Board. For instance, wheat prices at Minneapolis are about 30 per cent higher than at Winnipeg, and at Chicago they are about 20 per cent higher than at Buenos Aires. Corn prices at Chicago are over twice as high as at Buenos Aires. Wool prices average more than 80 per cent higher in this country than abroad, and butter is 30 per cent higher in New York City than in Copenhagen. Aside from the misfortune to agriculture of the world-wide depression we have had the most severe drought. It has affected particularly the States bordering on the Potomac, Ohio, and Lower Mississippi Rivers, with some areas in Montana, Kansas, Oklahoma, and Texas. It has found its major expression in the shortage of pasturage and a shrinkage in the corn crop from an average of about 2,800,000,000 bushels to about 2,090,000,000 bushels. On August 14 I called a conference of the governors of the most acutely affected States, and as a result of its conclusions I appointed a national committee comprising the heads of the important Federal agencies under the chairmanship of the Secretary of Agriculture. The governors in turn have appointed State committees representative of the farmers, bankers, business men, and the Red Cross, and subsidiary committees have been established in most of the acutely affected counties. Railway rates were reduced on feed and livestock in and out of the drought areas, and over 50,000 cars of such products have been transported under these reduced rates. The Red Cross established a preliminary fund of $5,000,000 for distress relief purposes and established agencies for its administration in each county. Of this fund less than $500,000 has been called for up to this time as the need will appear more largely during the winter. The Federal Farm Loan Board has extended its credit facilities, and the Federal Farm Board has given financial assistance to all affected cooperatives. In order that the Government may meet its full obligation toward our countrymen in distress through no fault of their own, I recommend that an appropriation should be made to the Department of Agriculture to be loaned for the purpose of seed and feed for animals. Its application should as hitherto in such loans be limited to a gross amount to any one individual, and secured upon the crop. The Red Cross can relieve the cases of individual distress by the sympathetic assistance of our people. FINANCES OF THE GOVERNMENT I shall submit the detailed financial position of the Government with recommendations in the usual Budget message. I will at this time, however, mention that the Budget estimates of receipts and expenditures for the current year were formulated by the Treasury and the Budget Bureau at a time when it was impossible to forecast the severity of the business depression and have been most seriously affected by it. At that time a surplus of about $123,000,000 was estimated for this fiscal year and tax reduction which affected the fiscal year to the extent of $75,000,000 was authorized by the Congress, thus reducing the estimated surplus to about $48,000,000. Closely revised estimates now made by the Treasury and the Bureau of the Budget of the tax, postal, and other receipts for the current fiscal year indicate a decrease of about $430,000,000 from the estimate of a year ago, of which about $75,000,000 is due to tax reduction, leaving about $355,000,000 due to the depression. Moreover, legislation enacted by Congress subsequent to the submission of the Budget enlarging Federal construction work to expand employment and for increase in veterans' services and other items, have increased expenditures during the current fiscal year by about $225,000,000. Thus the decrease of $430,000,000 in revenue and the increase of $225,000,000 in expenditure adversely change the original Budget situation by about $655,000,000. This large sum is offset by the original estimated surplus a year ago of about $123,000,000, by the application of $185,000,000 of interest payments upon the foreign debt to current expenditures, by arrangements of the Farm Board through repayments, etc., in consequence of which they reduced their net cash demands upon the Treasury by $100,000,000 in this period, and by about $67,000,000 economies and deferments brought about in the Government, thus reducing the practical effect of the change in the situation to an estimated deficit of about $180,000,000 for the present fiscal year. I shall make suggestions for handling the present-year deficit in the Budget message, but I do not favor encroachment upon the statutory reduction of the public debt. While it will be necessary in public interest to further increase expenditures during the current fiscal year in aid to unemployment by speeding up construction work and aid to the farmers affected by the drought, I can not emphasize too strongly the absolute necessity to defer any other plans for increase of Government expenditures. The Budget for 1932 fiscal year indicates estimated expenditure of about $4,054,000,000, including postal deficit. The receipts are estimated at about $4,085,000,000 if the temporary tax reduction of last year be discontinued, leaving a surplus of only about $30,000,000. Most rigid economy is therefore necessary to avoid increase in taxes. NATIONAL DEFENSE Our Army and Navy are being maintained at a high state of efficiency, under officers of high training and intelligence, supported by a devoted personnel of the rank and file. The London naval treaty has brought important economies in the conduct of the Navy. The Navy Department will lay before the committees of the Congress recommendations for a program of authorization of new construction which should be initiated in the fiscal year of 1932. LEGISLATION This is the last session of the Seventy-first Congress. During its previous sittings it has completed a very large amount of important legislation, notably: The establishment of the Federal Farm Board; fixing congressional reapportionment; revision of the tariff, including the flexible provisions and a reorganization of the Tariff Commission; reorganization of the Radio Commission; reorganization of the Federal Power Commission; expansion of Federal prisons; reorganization of parole and probation system in Federal prisons; expansion of veterans' hospitals; establishment of disability allowances to veterans; consolidation of veteran activities; consolidation and strengthening of prohibition enforcement activities in the Department of Justice; organization of a Narcotics Bureau; large expansion of rivers and harbors improvements; substantial increase in Federal highways; enlargement of public buildings construction program; and the ratification of the London naval treaty. The Congress has before it legislation partially completed in the last sitting in respect to Muscle Shoals, bus regulation, relief of congestion in the courts, reorganization of border patrol in prevention of smuggling, law enforcement in the District of Columbia, and other subjects. It is desirable that these measures should be completed. The short session does not permit of extensive legislative programs, but there are a number of questions which, if time does not permit action, I recommend should be placed in consideration by the Congress, perhaps through committees cooperating in some instances with the Federal departments, with view to preparation for subsequent action. Among them are the following subjects: ELECTRICAL POWER I have in a previous message recommended effective regulation of interstate electrical power. Such regulation should preserve the independence and responsibility of the States. RAILWAYS We have determined upon a national policy of consolidation of the railways as a necessity of more stable and more economically operated transportation. Further legislation is necessary to facilitate such consolidation. In the public interest we should strengthen the railways that they may meet our future needs. ANTITRUST LAWS I recommend that the Congress institute an inquiry into some aspects of the economic working of these laws. I do not favor repeal of the Sherman Act. The prevention of monopolies is of most vital public importance. Competition is not only the basis of protection to the consumer but is the incentive to progress. However, the interpretation of these laws by the courts, the changes in business, especially in the economic effects upon those enterprises closely related to the use of the natural resources of the country, make such an inquiry advisable. The producers of these materials assert that certain unfortunate results of wasteful and destructive use of these natural resources together with a destructive competition which impoverishes both operator and worker can not be remedied because of the prohibitive interpretation of the antitrust laws. The well-known condition of the bituminous coal industry is an illustration. The people have a vital interest in the conservation of their natural resources; in the prevention of wasteful practices; in conditions of destructive competition which may impoverish the producer and the wage earner; and they have an equal interest in maintaining adequate competition. I therefore suggest that an inquiry be directed especially to the effect of the workings of the antitrust laws in these particular fields to determine if these evils can be remedied without sacrifice of the fundamental purpose of these laws. CAPITAL-GAINS TAX It is urged by many thoughtful citizens that the peculiar economic effect of the income tax on so-called capital gains at the present rate is to enhance speculative inflation and likewise impede business recovery. I believe this to be the case and I recommend that a study be made of the economic effects of this tax and of its relation to the general structure of our income tax law. IMMIGRATION There is need for revision of our immigration laws upon a more limited and more selective basis, flexible to the needs of the country. Under conditions of current unemployment it is obvious that persons coming to the United States seeking work would likely become either a direct or indirect public charge. As a temporary measure the officers issuing visas to immigrants have been, in pursuance of the law, instructed to refuse visas to applicants likely to fall into this class. As a result the visas issued have decreased from an average of about 24,000 per month prior to restrictions to a rate of about 7,000 during the last month. These are largely preferred persons under the law. Visas from Mexico are about 250 per month compared to about 4,000 previous to restrictions. The whole subject requires exhaustive reconsideration. DEPORTATION OF ALIEN CRIMINALS I urge the strengthening of our deportation laws so as to more fully rid ourselves of criminal aliens. Furthermore, thousands of persons have entered the country in violation of the immigration laws. The very method of their entry indicates their objectionable character, and our law-abiding foreign-born residents suffer in consequence. I recommend that the Congress provide methods of strengthening the Government to correct this abuse. POST OFFICE Due to deferment of Government building over many years, previous administrations had been compelled to enter upon types of leases for secondary facilities in large cities, some of which were objectionable as representing too high a return upon the value of the property. To prevent the occasion for further uneconomic leasing I recommend that the Congress authorize the building by the Government of its own facilities. VETERANS The Nation has generously expanded its care for veterans. The consolidation of all veterans' activities into the Veterans' Administration has produced substantial administrative economies. The consolidation also brings emphasis to the inequalities in service and allowances. The whole subject is under study by the administrator, and I recommend it should also be examined by the committees of the Congress. SOCIAL SERVICE I urge further consideration by the Congress of the recommendations I made a year ago looking to the development through temporary Federal aid of adequate State and local services for the health of children and the further stamping out of communicable disease, particularly in the rural sections. The advance of scientific discovery, methods, and social thought imposes a new vision in these matters. The drain upon the Federal Treasury is comparatively small. The results both economic and moral are of the utmost importance. GENERAL It is my belief that after the passing of this depression, when we can examine it in retrospect, we shall need to consider a number of other questions as to what action may be taken by the Government to remove Possible governmental influences which make for instability and to better organize mitigation of the effect of depression. It is as yet too soon to constructively formulate such measures. There are many administrative subjects, such as departmental reorganization, extension of the civil service, readjustment of the postal rates, etc., which at some appropriate time require the attention of the Congress. FOREIGN RELATIONS Our relations with foreign countries have been maintained upon a high basis of cordiality and good will. During the past year the London naval pact was completed, approved by the Senate, and ratified by the governments concerned. By this treaty we have abolished competition in the building of warships, have established the basis of parity of the United States with the strongest of foreign powers, and have accomplished a substantial reduction in war vessels. During the year there has been an extended political unrest in the world. Asia continues in disturbed condition, and revolutions have taken place in Brazil, Argentina, Peru, and Bolivia. Despite the jeopardy to our citizens and their property which naturally arises in such circumstances, we have, with the cooperation of the governments concerned, been able to meet all such instances without friction. We have resumed normal relations with the new Governments of Brazil, Argentina, Peru, and Bolivia immediately upon evidence that they were able to give protection to our citizens and their property, and that they recognized their international obligations. A commission which was supported by the Congress has completed its investigation and reported upon our future policies in respect to Haiti and proved of high value in securing the acceptance of these policies. An election has been held and a new government established. We have replaced our high commissioner by a minister and have begun the gradual withdrawal of our activities with view to complete retirement at the expiration of the present treaty in 1935. A number of arbitration and conciliation treaties have been completed or negotiated during the year, and will be presented for approval by the Senate. I shall, in a special message, lay before the Senate the protocols covering the statutes of the World Court which have been revised to accord with the sense of previous Senate reservations. HERBERT HOOVER The White House, December 2, 1930.
to the senate and house of representatives i have the honor to comply with the requirement of the constitution that i should lay before the congress information as to the state of the union and recommend consideration of such measures as are necessary and expedient substantial progress has been made during the year in national peace and security the fundamental strength of the nation economic life is unimpaired education and scientific discovery have made advances our country is more alive to its problems of moral and spiritual welfare economic situation during the past 12 months we have suffered with other nations from economic depression the origins of this depression lie to some extent within our own borders through a speculative period which diverted capital and energy into speculation rather than constructive enterprise had overspeculation in securities been the only force operating we should have seen recovery many months ago as these particular dislocations have generally readjusted themselves other causes have been in action however chiefly the overproduction beyond even the demand of prosperous times for such important basic commodities as wheat rubber coffee sugar copper silver zinc to some extent cotton and other raw materials the cumulative effects of demoralizing price falls of these important commodities in the process of adjustment of production to world consumption have produced financial crises in many countries and have diminished the buying power of these countries for imported goods to a degree which extended the difficulties farther afield by creating unemployment in all the industrial nations the political agitation in asia revolutions in south america and political unrest in some european states the methods of sale by russia of her increasing agricultural exports to european markets and our own drought have all contributed to prolong and deepen the depression in the larger view the major forces of the depression now lie outside of the united states and our recuperation has been retarded by the unwarranted degree of fear and apprehension created by these outside forces the extent of the depression is indicated by the following approximate percentages of activity during the past three months as compared with the highly prosperous year of 1928 value of sales 93 of 1928 volume of manufacturing production 80 of 1928 volume of mineral production 90 of 1928 volume of factory employment 84 of 1928 total of bank deposits 105 of 1928 wholesale prices all commodities 83 of 1928 cost of living 94 of 1928 various other indexes indicate total decrease of activity from 1928 of from 15 to 20 per cent there are many factors which give encouragement for the future the fact that we are holding from 80 to 85 per cent of our normal activities and incomes that our major financial and industrial institutions have come through the storm unimpaired that price levels of major commodities have remained approximately stable for some time that a number of industries are showing signs of increasing demand that the world at large is readjusting itself to the situation all reflect grounds for confidence we should remember that these occasions have been met many times before that they are but temporary that our country is stronger and richer in resources in equipment in skill than ever in its history we are in an extraordinary degree we will overcome world influences and will lead the march of prosperity as we have always done hitherto economic depression can not be cured by legislative action or executive pronouncement economic wounds must be healed by the action of the cells of the economic body the producers and consumers themselves recovery can be expedited and its effects mitigated by cooperative action that cooperation requires that every individual should sustain faith and courage that each should maintain his that each and every one should search for methods of improving his business or service that the vast majority whose income is unimpaired should not hoard out of fear but should pursue their normal living and recreations that each should seek to assist his neighbors who may be less fortunate that each industry should assist its own employees that each community and each state should assume its full responsibilities for organization of employment and relief of distress with that sturdiness and independence which built a great nation our people are responding to these impulses in remarkable degree the best contribution of government lies in encouragement of this voluntary cooperation in the community the government national state and local can join with the community in such programs and do its part a year ago i together with other officers of the government initiated extensive cooperative measures throughout the country the first of these measures was an agreement of leading employers to maintain the standards of wages and of labor leaders to use their influence against strife in a large sense these undertakings have been adhered to and we have not witnessed the usual reductions of wages which have always heretofore marked depressions the index of union wage scales shows them to be today fully up to the level of any of the previous three years in consequence the buying power of the country has been much larger than would otherwise have been the case of equal importance the nation has had unusual peace in industry and freedom from the public disorder which has characterized previous depressions the second direction of cooperation has been that our governments national state and local the industries and business so distribute employment as to give work to the maximum number of employees the third direction of cooperation has been to maintain and even extend construction work and betterments in anticipation of the future it has been the universal experience in previous depressions that public works and private construction have fallen off rapidly with the general tide of depression on this occasion however the increased authorization and generous appropriations by the congress and the action of states and municipalities have resulted in the expansion of public construction to an amount even above that in the most prosperous years in addition the cooperation of public utilities railways and other large organizations has been generously given in construction and betterment work in anticipation of future need the department of commerce advises me that as a result the volume of this type of construction work which amounted to roughly in 1929 instead of decreasing will show a total of about for 1930 there has of course been a substantial decrease in the types of construction which could not be undertaken in advance of need the fourth direction of cooperation was the organization in such states and municipalities as was deemed necessary of committees to organize local employment to provide for employment agencies and to effect relief of distress the result of magnificent cooperation throughout the country has been that actual suffering has been kept to a minimum during the past 12 months and our unemployment has been far less in proportion than in other large industrial countries some time ago it became evident that unemployment would continue over the winter and would necessarily be added to from seasonal causes and that the savings of workpeople would be more largely depleted we have as a nation a definite duty to see that no deserving person in our country suffers from hunger or cold i therefore set up a more extensive organization to stimulate more intensive cooperation throughout the country there has been a most gratifying degree of response from governors mayors and other public officials from welfare organizations and from employers in concerns both large and small the local communities through their voluntary agencies have assumed the duty of relieving individual distress and are being generously supported by the public the number of those wholly out of employment seeking for work was accurately determined by the census last april as about the department of labor index of employment in the larger trades shows some decrease in employment since that time the problem from a relief point of view is somewhat less than the published estimates of the number of unemployed would indicate the intensive community and individual efforts in providing special employment outside the listed industries are not reflected in the statistical indexes and tend to reduce such published figures moreover there is estimated to be a constant figure at all times of nearly unemployed who are not without annual income but temporarily idle in the shift from one job to another we have an average of about three breadwinners to each two families so that every person unemployed does not represent a family without income the view that the relief problems are less than the gross numbers would indicate is confirmed by the experience of several cities which shows that the number of families in distress represents from 10 to 20 per cent of the number of the calculated unemployed this is not said to minimize the very real problem which exists but to weigh its actual proportions as a contribution to the situation the federal government is engaged upon the greatest program of waterway harbor flood control public building highway and airway improvement in all our history this together with loans to merchant shipbuilders improvement of the navy and in military aviation and other construction work of the government will exceed for this fiscal year this compares with in the fiscal year 1928 the construction works already authorized and the continuation of policies in government aid will require a continual expenditure upwards of half a billion dollars annually i favor still further temporary expansion of these activities in aid to unemployment during this winter the congress will however have presented to it numbers of projects some of them under the guise of rather than the reality of their usefulness in the increase of employment during the depression there are certain commonsense limitations upon any expansions of construction work the government must not undertake works that are not of sound economic purpose and that have not been subject to searching technical investigation and which have not been given adequate consideration by the congress the volume of construction work in the government is already at the maximum limit warranted by financial prudence as a continuing policy to increase taxation for purposes of construction work defeats its own purpose as such taxes directly diminish employment in private industry again any kind of construction requires after its authorization a considerable time before labor can be employed in which to make engineering architectural and legal preparations our immediate problem is the increase of employment for the next six months and new plans which do not produce such immediate result or which extend commitments beyond this period are not warranted the enlarged rivers and harbors public building and highway plans authorized by the congress last session however offer an opportunity for assistance by the temporary acceleration of construction of these programs even faster than originally planned especially if the technical requirements of the laws which entail great delays could be amended in such fashion as to speed up acquirements of land and the letting of contracts with view however to the possible need for acceleration we immediately upon receiving those authorities from the congress five months ago began the necessary technical work in preparation for such possible eventuality i have canvassed the departments of the government as to the maximum amount that can be properly added to our present expenditure to accelerate all construction during the next six months and i feel warranted in asking the congress for an appropriation of from to to provide such further employment in this emergency in connection therewith we need some authority to make enlarged temporary advances of aid to the states i recommend that this appropriation be made distributable to the different departments upon recommendation of a committee of the cabinet and approval by the president its application to works already authorized by the congress assures its use in directions of economic importance and to public welfare such action will imply an expenditure upon construction of all kinds of over during the next twelve months agriculture the depression has affected agriculture in common with all other industries the average price of farm produce has fallen to about 80 per cent of the levels of 1928 this average is however greatly affected by wheat and cotton which have participated in overproduction and have fallen to about 60 per cent of the average price of the year 1928 excluding these commodities the prices of all other agricultural products are about 84 per cent of those of 1928 the average wholesale prices of other primary goods such as nonferrous metals have fallen to 76 per cent of 1928 the price levels of our major agricultural commodities are in fact higher than those in other principal producing countries due to the combined result of the tariff and the operations of the farm board for instance wheat prices at minneapolis are about 30 per cent higher than at winnipeg and at chicago they are about 20 per cent higher than at buenos aires corn prices at chicago are over twice as high as at buenos aires wool prices average more than 80 per cent higher in this country than abroad and butter is 30 per cent higher in new york city than in copenhagen aside from the misfortune to agriculture of the depression we have had the most severe drought it has affected particularly the states bordering on the potomac ohio and lower mississippi rivers with some areas in montana kansas oklahoma and texas it has found its major expression in the shortage of pasturage and a shrinkage in the corn crop from an average of about bushels to about bushels on august 14 i called a conference of the governors of the most acutely affected states and as a result of its conclusions i appointed a national committee comprising the heads of the important federal agencies under the chairmanship of the secretary of agriculture the governors in turn have appointed state committees representative of the farmers bankers business men and the red cross and subsidiary committees have been established in most of the acutely affected counties railway rates were reduced on feed and livestock in and out of the drought areas and over cars of such products have been transported under these reduced rates the red cross established a preliminary fund of for distress relief purposes and established agencies for its administration in each county of this fund less than has been called for up to this time as the need will appear more largely during the winter the federal farm loan board has extended its credit facilities and the federal farm board has given financial assistance to all affected cooperatives in order that the government may meet its full obligation toward our countrymen in distress through no fault of their own i recommend that an appropriation should be made to the department of agriculture to be loaned for the purpose of seed and feed for animals its application should as hitherto in such loans be limited to a gross amount to any one individual and secured upon the crop the red cross can relieve the cases of individual distress by the sympathetic assistance of our people finances of the government i shall submit the detailed financial position of the government with recommendations in the usual budget message i will at this time however mention that the budget estimates of receipts and expenditures for the current year were formulated by the treasury and the budget bureau at a time when it was impossible to forecast the severity of the business depression and have been most seriously affected by it at that time a surplus of about was estimated for this fiscal year and tax reduction which affected the fiscal year to the extent of was authorized by the congress thus reducing the estimated surplus to about closely revised estimates now made by the treasury and the bureau of the budget of the tax postal and other receipts for the current fiscal year indicate a decrease of about from the estimate of a year ago of which about is due to tax reduction leaving about due to the depression moreover legislation enacted by congress subsequent to the submission of the budget enlarging federal construction work to expand employment and for increase in veterans services and other items have increased expenditures during the current fiscal year by about thus the decrease of in revenue and the increase of in expenditure adversely change the original budget situation by about this large sum is offset by the original estimated surplus a year ago of about by the application of of interest payments upon the foreign debt to current expenditures by arrangements of the farm board through repayments in consequence of which they reduced their net cash demands upon the treasury by in this period and by about economies and deferments brought about in the government thus reducing the practical effect of the change in the situation to an estimated deficit of about for the present fiscal year i shall make suggestions for handling the deficit in the budget message but i do not favor encroachment upon the statutory reduction of the public debt while it will be necessary in public interest to further increase expenditures during the current fiscal year in aid to unemployment by speeding up construction work and aid to the farmers affected by the drought i can not emphasize too strongly the absolute necessity to defer any other plans for increase of government expenditures the budget for 1932 fiscal year indicates estimated expenditure of about including postal deficit the receipts are estimated at about if the temporary tax reduction of last year be discontinued leaving a surplus of only about most rigid economy is therefore necessary to avoid increase in taxes national defense our army and navy are being maintained at a high state of efficiency under officers of high training and intelligence supported by a devoted personnel of the rank and file the london naval treaty has brought important economies in the conduct of the navy the navy department will lay before the committees of the congress recommendations for a program of authorization of new construction which should be initiated in the fiscal year of 1932 legislation this is the last session of the congress during its previous sittings it has completed a very large amount of important legislation notably the establishment of the federal farm board fixing congressional reapportionment revision of the tariff including the flexible provisions and a reorganization of the tariff commission reorganization of the radio commission reorganization of the federal power commission expansion of federal prisons reorganization of parole and probation system in federal prisons expansion of veterans hospitals establishment of disability allowances to veterans consolidation of veteran activities consolidation and strengthening of prohibition enforcement activities in the department of justice organization of a narcotics bureau large expansion of rivers and harbors improvements substantial increase in federal highways enlargement of public buildings construction program and the ratification of the london naval treaty the congress has before it legislation partially completed in the last sitting in respect to muscle shoals bus regulation relief of congestion in the courts reorganization of border patrol in prevention of smuggling law enforcement in the district of columbia and other subjects it is desirable that these measures should be completed the short session does not permit of extensive legislative programs but there are a number of questions which if time does not permit action i recommend should be placed in consideration by the congress perhaps through committees cooperating in some instances with the federal departments with view to preparation for subsequent action among them are the following subjects electrical power i have in a previous message recommended effective regulation of interstate electrical power such regulation should preserve the independence and responsibility of the states railways we have determined upon a national policy of consolidation of the railways as a necessity of more stable and more economically operated transportation further legislation is necessary to facilitate such consolidation in the public interest we should strengthen the railways that they may meet our future needs antitrust laws i recommend that the congress institute an inquiry into some aspects of the economic working of these laws i do not favor repeal of the sherman act the prevention of monopolies is of most vital public importance competition is not only the basis of protection to the consumer but is the incentive to progress however the interpretation of these laws by the courts the changes in business especially in the economic effects upon those enterprises closely related to the use of the natural resources of the country make such an inquiry advisable the producers of these materials assert that certain unfortunate results of wasteful and destructive use of these natural resources together with a destructive competition which impoverishes both operator and worker can not be remedied because of the prohibitive interpretation of the antitrust laws the condition of the bituminous coal industry is an illustration the people have a vital interest in the conservation of their natural resources in the prevention of wasteful practices in conditions of destructive competition which may impoverish the producer and the wage earner and they have an equal interest in maintaining adequate competition i therefore suggest that an inquiry be directed especially to the effect of the workings of the antitrust laws in these particular fields to determine if these evils can be remedied without sacrifice of the fundamental purpose of these laws tax it is urged by many thoughtful citizens that the peculiar economic effect of the income tax on capital gains at the present rate is to enhance speculative inflation and likewise impede business recovery i believe this to be the case and i recommend that a study be made of the economic effects of this tax and of its relation to the general structure of our income tax law immigration there is need for revision of our immigration laws upon a more limited and more selective basis flexible to the needs of the country under conditions of current unemployment it is obvious that persons coming to the united states seeking work would likely become either a direct or indirect public charge as a temporary measure the officers issuing visas to immigrants have been in pursuance of the law instructed to refuse visas to applicants likely to fall into this class as a result the visas issued have decreased from an average of about per month prior to restrictions to a rate of about during the last month these are largely preferred persons under the law visas from mexico are about 250 per month compared to about previous to restrictions the whole subject requires exhaustive reconsideration deportation of alien criminals i urge the strengthening of our deportation laws so as to more fully rid ourselves of criminal aliens furthermore thousands of persons have entered the country in violation of the immigration laws the very method of their entry indicates their objectionable character and our residents suffer in consequence i recommend that the congress provide methods of strengthening the government to correct this abuse post office due to deferment of government building over many years previous administrations had been compelled to enter upon types of leases for secondary facilities in large cities some of which were objectionable as representing too high a return upon the value of the property to prevent the occasion for further uneconomic leasing i recommend that the congress authorize the building by the government of its own facilities veterans the nation has generously expanded its care for veterans the consolidation of all veterans activities into the veterans administration has produced substantial administrative economies the consolidation also brings emphasis to the inequalities in service and allowances the whole subject is under study by the administrator and i recommend it should also be examined by the committees of the congress social service i urge further consideration by the congress of the recommendations i made a year ago looking to the development through temporary federal aid of adequate state and local services for the health of children and the further stamping out of communicable disease particularly in the rural sections the advance of scientific discovery methods and social thought imposes a new vision in these matters the drain upon the federal treasury is comparatively small the results both economic and moral are of the utmost importance general it is my belief that after the passing of this depression when we can examine it in retrospect we shall need to consider a number of other questions as to what action may be taken by the government to remove possible governmental influences which make for instability and to better organize mitigation of the effect of depression it is as yet too soon to constructively formulate such measures there are many administrative subjects such as departmental reorganization extension of the civil service readjustment of the postal rates which at some appropriate time require the attention of the congress foreign relations our relations with foreign countries have been maintained upon a high basis of cordiality and good will during the past year the london naval pact was completed approved by the senate and ratified by the governments concerned by this treaty we have abolished competition in the building of warships have established the basis of parity of the united states with the strongest of foreign powers and have accomplished a substantial reduction in war vessels during the year there has been an extended political unrest in the world asia continues in disturbed condition and revolutions have taken place in brazil argentina peru and bolivia despite the jeopardy to our citizens and their property which naturally arises in such circumstances we have with the cooperation of the governments concerned been able to meet all such instances without friction we have resumed normal relations with the new governments of brazil argentina peru and bolivia immediately upon evidence that they were able to give protection to our citizens and their property and that they recognized their international obligations a commission which was supported by the congress has completed its investigation and reported upon our future policies in respect to haiti and proved of high value in securing the acceptance of these policies an election has been held and a new government established we have replaced our high commissioner by a minister and have begun the gradual withdrawal of our activities with view to complete retirement at the expiration of the present treaty in 1935 a number of arbitration and conciliation treaties have been completed or negotiated during the year and will be presented for approval by the senate i shall in a special message lay before the senate the protocols covering the statutes of the world court which have been revised to accord with the sense of previous senate reservations herbert hoover the white house december 2 1930
senate house representatives honor comply requirement constitution lay congress information state union recommend consideration measures necessary expedient substantial progress made year national peace security fundamental strength nation economic life unimpaired education scientific discovery made advances country alive problems moral spiritual welfare economic situation past 12 months suffered nations economic depression origins depression lie extent within borders speculative period diverted capital energy speculation rather constructive enterprise overspeculation securities force operating seen recovery many months ago particular dislocations generally readjusted causes action however chiefly overproduction beyond even demand prosperous times important basic commodities wheat rubber coffee sugar copper silver zinc extent cotton raw materials cumulative effects demoralizing price falls important commodities process adjustment production world consumption produced financial crises many countries diminished buying power countries imported goods degree extended difficulties farther afield creating unemployment industrial nations political agitation asia revolutions south america political unrest european states methods sale russia increasing agricultural exports european markets drought contributed prolong deepen depression larger view major forces depression lie outside united states recuperation retarded unwarranted degree fear apprehension created outside forces extent depression indicated following approximate percentages activity past three months compared highly prosperous year 1928 value sales 93 1928 volume manufacturing production 80 1928 volume mineral production 90 1928 volume factory employment 84 1928 total bank deposits 105 1928 wholesale prices commodities 83 1928 cost living 94 1928 various indexes indicate total decrease activity 1928 15 20 per cent many factors give encouragement future fact holding 80 85 per cent normal activities incomes major financial industrial institutions come storm unimpaired price levels major commodities remained approximately stable time number industries showing signs increasing demand world large readjusting situation reflect grounds confidence remember occasions met many times temporary country stronger richer resources equipment skill ever history extraordinary degree overcome world influences lead march prosperity always done hitherto economic depression cured legislative action executive pronouncement economic wounds must healed action cells economic body producers consumers recovery expedited effects mitigated cooperative action cooperation requires every individual sustain faith courage maintain every one search methods improving business service vast majority whose income unimpaired hoard fear pursue normal living recreations seek assist neighbors may less fortunate industry assist employees community state assume full responsibilities organization employment relief distress sturdiness independence built great nation people responding impulses remarkable degree best contribution government lies encouragement voluntary cooperation community government national state local join community programs part year ago together officers government initiated extensive cooperative measures throughout country first measures agreement leading employers maintain standards wages labor leaders use influence strife large sense undertakings adhered witnessed usual reductions wages always heretofore marked depressions index union wage scales shows today fully level previous three years consequence buying power country much larger would otherwise case equal importance nation unusual peace industry freedom public disorder characterized previous depressions second direction cooperation governments national state local industries business distribute employment give work maximum number employees third direction cooperation maintain even extend construction work betterments anticipation future universal experience previous depressions public works private construction fallen rapidly general tide depression occasion however increased authorization generous appropriations congress action states municipalities resulted expansion public construction amount even prosperous years addition cooperation public utilities railways large organizations generously given construction betterment work anticipation future need department commerce advises result volume type construction work amounted roughly 1929 instead decreasing show total 1930 course substantial decrease types construction could undertaken advance need fourth direction cooperation organization states municipalities deemed necessary committees organize local employment provide employment agencies effect relief distress result magnificent cooperation throughout country actual suffering kept minimum past 12 months unemployment far less proportion large industrial countries time ago became evident unemployment would continue winter would necessarily added seasonal causes savings workpeople would largely depleted nation definite duty see deserving person country suffers hunger cold therefore set extensive organization stimulate intensive cooperation throughout country gratifying degree response governors mayors public officials welfare organizations employers concerns large small local communities voluntary agencies assumed duty relieving individual distress generously supported public number wholly employment seeking work accurately determined census last april department labor index employment larger trades shows decrease employment since time problem relief point view somewhat less published estimates number unemployed would indicate intensive community individual efforts providing special employment outside listed industries reflected statistical indexes tend reduce published figures moreover estimated constant figure times nearly unemployed without annual income temporarily idle shift one job another average three breadwinners two families every person unemployed represent family without income view relief problems less gross numbers would indicate confirmed experience several cities shows number families distress represents 10 20 per cent number calculated unemployed said minimize real problem exists weigh actual proportions contribution situation federal government engaged upon greatest program waterway harbor flood control public building highway airway improvement history together loans merchant shipbuilders improvement navy military aviation construction work government exceed fiscal year compares fiscal year 1928 construction works already authorized continuation policies government aid require continual expenditure upwards half billion dollars annually favor still temporary expansion activities aid unemployment winter congress however presented numbers projects guise rather reality usefulness increase employment depression certain commonsense limitations upon expansions construction work government must undertake works sound economic purpose subject searching technical investigation given adequate consideration congress volume construction work government already maximum limit warranted financial prudence continuing policy increase taxation purposes construction work defeats purpose taxes directly diminish employment private industry kind construction requires authorization considerable time labor employed make engineering architectural legal preparations immediate problem increase employment next six months new plans produce immediate result extend commitments beyond period warranted enlarged rivers harbors public building highway plans authorized congress last session however offer opportunity assistance temporary acceleration construction programs even faster originally planned especially technical requirements laws entail great delays could amended fashion speed acquirements land letting contracts view however possible need acceleration immediately upon receiving authorities congress five months ago began necessary technical work preparation possible eventuality canvassed departments government maximum amount properly added present expenditure accelerate construction next six months feel warranted asking congress appropriation provide employment emergency connection therewith need authority make enlarged temporary advances aid states recommend appropriation made distributable different departments upon recommendation committee cabinet approval president application works already authorized congress assures use directions economic importance public welfare action imply expenditure upon construction kinds next twelve months agriculture depression affected agriculture common industries average price farm produce fallen 80 per cent levels 1928 average however greatly affected wheat cotton participated overproduction fallen 60 per cent average price year 1928 excluding commodities prices agricultural products 84 per cent 1928 average wholesale prices primary goods nonferrous metals fallen 76 per cent 1928 price levels major agricultural commodities fact higher principal producing countries due combined result tariff operations farm board instance wheat prices minneapolis 30 per cent higher winnipeg chicago 20 per cent higher buenos aires corn prices chicago twice high buenos aires wool prices average 80 per cent higher country abroad butter 30 per cent higher new york city copenhagen aside misfortune agriculture depression severe drought affected particularly states bordering potomac ohio lower mississippi rivers areas montana kansas oklahoma texas found major expression shortage pasturage shrinkage corn crop average bushels bushels august 14 called conference governors acutely affected states result conclusions appointed national committee comprising heads important federal agencies chairmanship secretary agriculture governors turn appointed state committees representative farmers bankers business men red cross subsidiary committees established acutely affected counties railway rates reduced feed livestock drought areas cars products transported reduced rates red cross established preliminary fund distress relief purposes established agencies administration county fund less called time need appear largely winter federal farm loan board extended credit facilities federal farm board given financial assistance affected cooperatives order government may meet full obligation toward countrymen distress fault recommend appropriation made department agriculture loaned purpose seed feed animals application hitherto loans limited gross amount one individual secured upon crop red cross relieve cases individual distress sympathetic assistance people finances government shall submit detailed financial position government recommendations usual budget message time however mention budget estimates receipts expenditures current year formulated treasury budget bureau time impossible forecast severity business depression seriously affected time surplus estimated fiscal year tax reduction affected fiscal year extent authorized congress thus reducing estimated surplus closely revised estimates made treasury bureau budget tax postal receipts current fiscal year indicate decrease estimate year ago due tax reduction leaving due depression moreover legislation enacted congress subsequent submission budget enlarging federal construction work expand employment increase veterans services items increased expenditures current fiscal year thus decrease revenue increase expenditure adversely change original budget situation large sum offset original estimated surplus year ago application interest payments upon foreign debt current expenditures arrangements farm board repayments consequence reduced net cash demands upon treasury period economies deferments brought government thus reducing practical effect change situation estimated deficit present fiscal year shall make suggestions handling deficit budget message favor encroachment upon statutory reduction public debt necessary public interest increase expenditures current fiscal year aid unemployment speeding construction work aid farmers affected drought emphasize strongly absolute necessity defer plans increase government expenditures budget 1932 fiscal year indicates estimated expenditure including postal deficit receipts estimated temporary tax reduction last year discontinued leaving surplus rigid economy therefore necessary avoid increase taxes national defense army navy maintained high state efficiency officers high training intelligence supported devoted personnel rank file london naval treaty brought important economies conduct navy navy department lay committees congress recommendations program authorization new construction initiated fiscal year 1932 legislation last session congress previous sittings completed large amount important legislation notably establishment federal farm board fixing congressional reapportionment revision tariff including flexible provisions reorganization tariff commission reorganization radio commission reorganization federal power commission expansion federal prisons reorganization parole probation system federal prisons expansion veterans hospitals establishment disability allowances veterans consolidation veteran activities consolidation strengthening prohibition enforcement activities department justice organization narcotics bureau large expansion rivers harbors improvements substantial increase federal highways enlargement public buildings construction program ratification london naval treaty congress legislation partially completed last sitting respect muscle shoals bus regulation relief congestion courts reorganization border patrol prevention smuggling law enforcement district columbia subjects desirable measures completed short session permit extensive legislative programs number questions time permit action recommend placed consideration congress perhaps committees cooperating instances federal departments view preparation subsequent action among following subjects electrical power previous message recommended effective regulation interstate electrical power regulation preserve independence responsibility states railways determined upon national policy consolidation railways necessity stable economically operated transportation legislation necessary facilitate consolidation public interest strengthen railways may meet future needs antitrust laws recommend congress institute inquiry aspects economic working laws favor repeal sherman act prevention monopolies vital public importance competition basis protection consumer incentive progress however interpretation laws courts changes business especially economic effects upon enterprises closely related use natural resources country make inquiry advisable producers materials assert certain unfortunate results wasteful destructive use natural resources together destructive competition impoverishes operator worker remedied prohibitive interpretation antitrust laws condition bituminous coal industry illustration people vital interest conservation natural resources prevention wasteful practices conditions destructive competition may impoverish producer wage earner equal interest maintaining adequate competition therefore suggest inquiry directed especially effect workings antitrust laws particular fields determine evils remedied without sacrifice fundamental purpose laws tax urged many thoughtful citizens peculiar economic effect income tax capital gains present rate enhance speculative inflation likewise impede business recovery believe case recommend study made economic effects tax relation general structure income tax law immigration need revision immigration laws upon limited selective basis flexible needs country conditions current unemployment obvious persons coming united states seeking work would likely become either direct indirect public charge temporary measure officers issuing visas immigrants pursuance law instructed refuse visas applicants likely fall class result visas issued decreased average per month prior restrictions rate last month largely preferred persons law visas mexico 250 per month compared previous restrictions whole subject requires exhaustive reconsideration deportation alien criminals urge strengthening deportation laws fully rid criminal aliens furthermore thousands persons entered country violation immigration laws method entry indicates objectionable character residents suffer consequence recommend congress provide methods strengthening government correct abuse post office due deferment government building many years previous administrations compelled enter upon types leases secondary facilities large cities objectionable representing high return upon value property prevent occasion uneconomic leasing recommend congress authorize building government facilities veterans nation generously expanded care veterans consolidation veterans activities veterans administration produced substantial administrative economies consolidation also brings emphasis inequalities service allowances whole subject study administrator recommend also examined committees congress social service urge consideration congress recommendations made year ago looking development temporary federal aid adequate state local services health children stamping communicable disease particularly rural sections advance scientific discovery methods social thought imposes new vision matters drain upon federal treasury comparatively small results economic moral utmost importance general belief passing depression examine retrospect shall need consider number questions action may taken government remove possible governmental influences make instability better organize mitigation effect depression yet soon constructively formulate measures many administrative subjects departmental reorganization extension civil service readjustment postal rates appropriate time require attention congress foreign relations relations foreign countries maintained upon high basis cordiality good past year london naval pact completed approved senate ratified governments concerned treaty abolished competition building warships established basis parity united states strongest foreign powers accomplished substantial reduction war vessels year extended political unrest world asia continues disturbed condition revolutions taken place brazil argentina peru bolivia despite jeopardy citizens property naturally arises circumstances cooperation governments concerned able meet instances without friction resumed normal relations new governments brazil argentina peru bolivia immediately upon evidence able give protection citizens property recognized international obligations commission supported congress completed investigation reported upon future policies respect haiti proved high value securing acceptance policies election held new government established replaced high commissioner minister begun gradual withdrawal activities view complete retirement expiration present treaty 1935 number arbitration conciliation treaties completed negotiated year presented approval senate shall special message lay senate protocols covering statutes world court revised accord sense previous senate reservations herbert hoover white house december 2 1930
senate house representative honor comply requirement constitution lay congress information state union recommend consideration measure necessary expedient substantial progress make year national peace security fundamental strength nation economic life unimpaired education scientific discovery make advance country alive problem moral spiritual welfare economic situation past 12 month suffer nation economic depression origin depression lie extent within border speculative period divert capital energy speculation rather constructive enterprise overspeculation security force operate see recovery many month ago particular dislocation generally readjust cause action however chiefly overproduction beyond even demand prosperous time important basic commodity wheat rubber coffee sugar copper silver zinc extent cotton raw material cumulative effect demoralize price fall important commodity process adjustment production world consumption produce financial crisis many country diminish buy power country import good degree extend difficulty far afield create unemployment industrial nation political agitation asia revolution south america political unrest european state method sale russia increase agricultural export european market drought contribute prolong deepen depression large view major force depression lie outside united state recuperation retard unwarranted degree fear apprehension create outside force extent depression indicate follow approximate percentage activity past three month compare highly prosperous year 1928 value sale 93 1928 volume manufacture production 80 1928 volume mineral production 90 1928 volume factory employment 84 1928 total bank deposit 105 1928 wholesale price commodity 83 1928 cost live 94 1928 various index indicate total decrease activity 1928 15 20 per cent many factor give encouragement future fact hold 80 85 per cent normal activity incomes major financial industrial institution come storm unimpaired price level major commodity remain approximately stable time number industry show sign increase demand world large readjust situation reflect ground confidence remember occasion meet many time temporary country strong rich resource equipment skill ever history extraordinary degree overcome world influence lead march prosperity always do hitherto economic depression cure legislative action executive pronouncement economic wound must heal action cell economic body producer consumer recovery expedite effect mitigate cooperative action cooperation require every individual sustain faith courage maintain every one search method improve business service vast majority whose income unimpaired hoard fear pursue normal living recreation seek assist neighbor may less fortunate industry assist employee community state assume full responsibility organization employment relief distress sturdiness independence build great nation people respond impulse remarkable degree best contribution government lie encouragement voluntary cooperation community government national state local join community program part year ago together officer government initiate extensive cooperative measure throughout country first measure agreement lead employer maintain standard wage labor leader use influence strife large sense undertaking adhere witnessed usual reduction wage always heretofore marked depression index union wage scale show today fully level previous three year consequence buy power country much large would otherwise case equal importance nation unusual peace industry freedom public disorder characterize previous depression second direction cooperation government national state local industry business distribute employment give work maximum number employee third direction cooperation maintain even extend construction work betterment anticipation future universal experience previous depression public work private construction fall rapidly general tide depression occasion however increase authorization generous appropriation congress action state municipality result expansion public construction amount even prosperous year addition cooperation public utility railways large organization generously give construction betterment work anticipation future need department commerce advise result volume type construction work amount roughly 1929 instead decrease show total 1930 course substantial decrease type construction could undertake advance need fourth direction cooperation organization state municipality deem necessary committee organize local employment provide employment agency effect relief distress result magnificent cooperation throughout country actual suffer keep minimum past 12 month unemployment far less proportion large industrial country time ago become evident unemployment would continue winter would necessarily add seasonal cause saving workpeople would largely depleted nation definite duty see deserve person country suffers hunger cold therefore set extensive organization stimulate intensive cooperation throughout country gratify degree response governor mayor public official welfare organization employer concern large small local community voluntary agency assume duty relieve individual distress generously support public number wholly employment seek work accurately determine census last april department labor index employment large trade show decrease employment since time problem relief point view somewhat less published estimate number unemployed would indicate intensive community individual effort provide special employment outside listed industry reflect statistical index tend reduce publish figure moreover estimate constant figure time nearly unemployed without annual income temporarily idle shift one job another average three breadwinner two family every person unemployed represent family without income view relief problem less gross number would indicate confirmed experience several city show number family distress represent 10 20 per cent number calculate unemployed say minimize real problem exist weigh actual proportion contribution situation federal government engage upon great program waterway harbor flood control public build highway airway improvement history together loan merchant shipbuilder improvement navy military aviation construction work government exceed fiscal year compare fiscal year 1928 construction work already authorize continuation policy government aid require continual expenditure upwards half billion dollar annually favor still temporary expansion activity aid unemployment winter congress however present number project guise rather reality usefulness increase employment depression certain commonsense limitation upon expansion construction work government must undertake work sound economic purpose subject search technical investigation give adequate consideration congress volume construction work government already maximum limit warrant financial prudence continue policy increase taxation purpose construction work defeat purpose tax directly diminish employment private industry kind construction require authorization considerable time labor employ make engineering architectural legal preparation immediate problem increase employment next six month new plan produce immediate result extend commitment beyond period warrant enlarged river harbor public build highway plan authorize congress last session however offer opportunity assistance temporary acceleration construction program even faster originally plan especially technical requirement law entail great delay could amend fashion speed acquirement land let contract view however possible need acceleration immediately upon receive authority congress five month ago begin necessary technical work preparation possible eventuality canvass department government maximum amount properly add present expenditure accelerate construction next six month feel warrant ask congress appropriation provide employment emergency connection therewith need authority make enlarge temporary advance aid state recommend appropriation make distributable different department upon recommendation committee cabinet approval president application work already authorize congress assures use direction economic importance public welfare action imply expenditure upon construction kind next twelve month agriculture depression affect agriculture common industry average price farm produce fall 80 per cent level 1928 average however greatly affected wheat cotton participate overproduction fall 60 per cent average price year 1928 exclude commodity price agricultural product 84 per cent 1928 average wholesale price primary good nonferrous metal fall 76 per cent 1928 price level major agricultural commodity fact high principal produce country due combine result tariff operation farm board instance wheat price minneapolis 30 per cent high winnipeg chicago 20 per cent high buenos air corn price chicago twice high buenos air wool price average 80 per cent high country abroad butter 30 per cent high new york city copenhagen aside misfortune agriculture depression severe drought affect particularly state border potomac ohio low mississippi river area montana kansas oklahoma texas find major expression shortage pasturage shrinkage corn crop average bushel bushel august 14 call conference governor acutely affect state result conclusion appoint national committee comprise head important federal agency chairmanship secretary agriculture governor turn appoint state committee representative farmer banker business men red cross subsidiary committee establish acutely affected county railway rate reduce feed livestock drought area car product transport reduced rate red cross establish preliminary fund distress relief purpose establish agency administration county fund less called time need appear largely winter federal farm loan board extend credit facility federal farm board give financial assistance affect cooperative order government may meet full obligation toward countryman distress fault recommend appropriation make department agriculture loan purpose seed feed animal application hitherto loan limit gross amount one individual secure upon crop red cross relieve case individual distress sympathetic assistance people finance government shall submit detailed financial position government recommendation usual budget message time however mention budget estimate receipt expenditure current year formulate treasury budget bureau time impossible forecast severity business depression seriously affect time surplus estimate fiscal year tax reduction affect fiscal year extent authorize congress thus reduce estimate surplus closely revise estimate make treasury bureau budget tax postal receipt current fiscal year indicate decrease estimate year ago due tax reduction leave due depression moreover legislation enact congress subsequent submission budget enlarge federal construction work expand employment increase veteran service item increase expenditure current fiscal year thus decrease revenue increase expenditure adversely change original budget situation large sum offset original estimate surplus year ago application interest payment upon foreign debt current expenditures arrangement farm board repayments consequence reduce net cash demand upon treasury period economy deferment brought government thus reduce practical effect change situation estimate deficit present fiscal year shall make suggestion handle deficit budget message favor encroachment upon statutory reduction public debt necessary public interest increase expenditures current fiscal year aid unemployment speed construction work aid farmer affect drought emphasize strongly absolute necessity defer plan increase government expenditure budget 1932 fiscal year indicate estimate expenditure include postal deficit receipt estimate temporary tax reduction last year discontinue leave surplus rigid economy therefore necessary avoid increase tax national defense army navy maintain high state efficiency officer high train intelligence support devoted personnel rank file london naval treaty bring important economy conduct navy navy department lay committee congress recommendation program authorization new construction initiate fiscal year 1932 legislation last session congress previous sitting complete large amount important legislation notably establishment federal farm board fix congressional reapportionment revision tariff include flexible provision reorganization tariff commission reorganization radio commission reorganization federal power commission expansion federal prison reorganization parole probation system federal prison expansion veteran hospital establishment disability allowance veteran consolidation veteran activity consolidation strengthen prohibition enforcement activity department justice organization narcotic bureau large expansion river harbor improvements substantial increase federal highway enlargement public building construction program ratification london naval treaty congress legislation partially complete last sit respect muscle shoal bus regulation relief congestion court reorganization border patrol prevention smuggle law enforcement district columbia subject desirable measure complete short session permit extensive legislative program number question time permit action recommend place consideration congress perhaps committee cooperate instance federal department view preparation subsequent action among follow subject electrical power previous message recommend effective regulation interstate electrical power regulation preserve independence responsibility state railway determine upon national policy consolidation railways necessity stable economically operated transportation legislation necessary facilitate consolidation public interest strengthen railway may meet future need antitrust law recommend congress institute inquiry aspect economic work law favor repeal sherman act prevention monopoly vital public importance competition basis protection consumer incentive progress however interpretation law court change business especially economic effect upon enterprise closely relate use natural resource country make inquiry advisable producer material assert certain unfortunate result wasteful destructive use natural resource together destructive competition impoverishes operator worker remedied prohibitive interpretation antitrust law condition bituminous coal industry illustration people vital interest conservation natural resource prevention wasteful practice condition destructive competition may impoverish producer wage earner equal interest maintain adequate competition therefore suggest inquiry direct especially effect working antitrust law particular field determine evil remedied without sacrifice fundamental purpose law tax urge many thoughtful citizen peculiar economic effect income tax capital gain present rate enhance speculative inflation likewise impede business recovery believe case recommend study make economic effect tax relation general structure income tax law immigration need revision immigration law upon limited selective basis flexible need country condition current unemployment obvious person come united state seek work would likely become either direct indirect public charge temporary measure officer issue visa immigrant pursuance law instruct refuse visa applicant likely fall class result visa issue decreased average per month prior restriction rate last month largely preferred person law visa mexico 250 per month compare previous restriction whole subject require exhaustive reconsideration deportation alien criminal urge strengthen deportation law fully rid criminal alien furthermore thousand person enter country violation immigration law method entry indicate objectionable character resident suffer consequence recommend congress provide method strengthen government correct abuse post office due deferment government build many year previous administration compel enter upon type lease secondary facility large city objectionable represent high return upon value property prevent occasion uneconomic lease recommend congress authorize build government facility veterans nation generously expand care veteran consolidation veteran activity veteran administration produce substantial administrative economy consolidation also bring emphasis inequality service allowance whole subject study administrator recommend also examine committee congress social service urge consideration congress recommendation make year ago look development temporary federal aid adequate state local service health child stamp communicable disease particularly rural section advance scientific discovery method social think imposes new vision matter drain upon federal treasury comparatively small result economic moral utmost importance general belief pass depression examine retrospect shall need consider number question action may take government remove possible governmental influence make instability well organize mitigation effect depression yet soon constructively formulate measure many administrative subject departmental reorganization extension civil service readjustment postal rate appropriate time require attention congress foreign relation relation foreign country maintain upon high basis cordiality good past year london naval pact complete approved senate ratify government concern treaty abolish competition build warship establish basis parity united state strongest foreign power accomplish substantial reduction war vessel year extend political unrest world asia continue disturb condition revolution take place brazil argentina peru bolivia despite jeopardy citizen property naturally arise circumstance cooperation government concern able meet instance without friction resume normal relation new government brazil argentina peru bolivia immediately upon evidence able give protection citizen property recognize international obligation commission support congress complete investigation report upon future policy respect haiti prove high value secure acceptance policy election hold new government establish replaced high commissioner minister begin gradual withdrawal activity view complete retirement expiration present treaty 1935 number arbitration conciliation treaty complete negotiated year present approval senate shall special message lay senate protocol cover statute world court revise accord sense previous senate reservation herbert hoover white house december 2 1930