Mr. President, Mr. Speaker, Members of the Eighty-third Congress: It is a high honor again to present to the Congress my views on the state of the Union and to recommend measures to advance the security, prosperity, and well-being of the American people. All branches of this Government--and I venture to say both of our great parties--can support the general objective of the recommendations I make today, for that objective is the building of a stronger America. A nation whose every citizen has good reason for bold hope; where effort is rewarded and prosperity is shared; where freedom expands and peace is secure--that is what I mean by a stronger America. Toward this objective a real momentum has been developed during this Administration's first year in office. We mean to continue that momentum and to increase it. We mean to build a better future for this nation. Much for which we may be thankful has happened during the past year. First of all we are deeply grateful that our sons no longer die on the distant mountains of Korea. Although they are still called from our homes to military service, they are no longer called to the field of battle. The nation has just completed the most prosperous year in its history. The damaging effect of inflation on the wages, pensions, salaries and savings of us all has been brought under control. Taxes have begun to go down. The cost of our government has been reduced and its work proceeds with some 183,000 fewer employees; thus the discouraging trend of modern governments toward their own limitless expansion has in our case been reversed. The cost of armaments becomes less oppressive as we near our defense goals; yet we are militarily stronger every day. During the year, creation of the new Cabinet Department of Health, Education, and Welfare symbolized the government's permanent concern with the human problems of our citizens. Segregation in the armed forces and other Federal activities is on the way out. We have also made progress toward its elimination in the District of Columbia. These are steps in the continuing effort to eliminate inter-racial difficulty. Some developments beyond our shores have been equally encouraging. Communist aggression, halted in Korea, continues to meet in Indo-china the vigorous resistance of France and the Associated States, assisted by timely aid from our country. In West Germany, in Iran, and in other areas of the world, heartening political victories have been won by the forces of stability and freedom. Slowly but surely, the free world gathers strength. Meanwhile, from behind the iron curtain, there are signs that tyranny is in trouble and reminders that its structure is as brittle as its surface is hard. There has been in fact a great strategic change in the world during the past year. That precious intangible, the initiative, is becoming ours. Our policy, not limited to mere reaction against crises provoked by others, is free to develop along lines of our choice not only abroad, but also at home. As a major theme for American policy during the coming year, let our joint determination be to hold this new initiative and to use it. We shall use this initiative to promote three broad purposes: First, to protect the freedom of our people; second, to maintain a strong, growing economy; third, to concern ourselves with the human problems of the individual citizen. Only by active concern for each of these purposes can we be sure that we are on the forward road to a better and a stronger America. All my recommendations today are in furtherance of these three purposes. I. FOREIGN AFFAIRS American freedom is threatened so long as the world Communist conspiracy exists in its present scope, power and hostility. More closely than ever before, American freedom is interlocked with the freedom of other people. In the unity of the free world lies our best chance to reduce the Communist threat without war. In the task of maintaining this unity and strengthening all its parts, the greatest responsibility falls naturally on those who, like ourselves, retain the most freedom and strength. We shall, therefore, continue to advance the cause of freedom on foreign fronts. In the Far East, we retain our vital interest in Korea. We have negotiated with the Republic of Korea a mutual security pact, which develops our security system for the Pacific and which I shall promptly submit to the Senate for its consent to ratification. We are prepared to meet any renewal of armed aggression in Korea. We shall maintain indefinitely our bases in Okinawa. I shall ask the Congress to authorize continued material assistance to hasten the successful conclusion of the struggle in Indo-china. This assistance will also bring closer the day when the Associated States may enjoy the independence already assured by France. We shall also continue military and economic aid to the Nationalist Government of China. In South Asia, profound changes are taking place in free nations which are demonstrating their ability to progress through democratic methods. They provide an inspiring contrast to the dictatorial methods and backward course of events in Communist China. In these continuing efforts, the free peoples of South Asia can be assured of the support of the United States. In the Middle East, where tensions and serious problems exist, we will show sympathetic and impartial friendship. In Western Europe our policy rests firmly on the North Atlantic Treaty. It will remain so based as far ahead as we can see. Within its organization, the building of a united European community, including France and Germany, is vital to a free and self-reliant Europe. This will be promoted by the European Defense Community which offers assurance of European security. With the coming of unity to Western Europe, the assistance this Nation can render for the security of Europe and the free world will be multiplied in effectiveness. In the Western Hemisphere we shall continue to develop harmonious and mutually beneficial cooperation with our neighbors. Indeed, solid friendship with all our American neighbors is a cornerstone of our entire policy. In the world as a whole, the United Nations, admittedly still in a state of evolution, means much to the United States. It has given uniquely valuable services in many places where violence threatened. It is the only real world forum where we have the opportunity for international presentation and rebuttal. It is a place where the nations of the world can, if they have the will, take collective action for peace and justice. It is a place where the guilt can be squarely assigned to those who fail to take all necessary steps to keep the peace. The United Nations deserves our continued firm support. FOREIGN ASSISTANCE AND TRADE In the practical application of our foreign policy, we enter the field of foreign assistance and trade. Military assistance must be continued. Technical assistance must be maintained. Economic assistance can be reduced. However, our economic programs in Korea and in a few other critical places of the world are especially important, and I shall ask Congress to continue them in the next fiscal year. The forthcoming Budget Message will propose maintenance of the Presidential power of transferability of all assistance funds and will ask authority to merge these funds with the regular defense funds. It will also propose that the Secretary of Defense have primary responsibility for the administration of foreign military assistance in accordance with the policy guidance of the Secretary of State. The fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved. By continuing to surpass her prewar levels of economic activity, Western Europe gains self-reliance. Thus our relationship enters a new phase which can bring results beneficial to our taxpayers and our allies alike, if still another step is taken. This step is the creation of a healthier and freer system of trade and payments within the free world--a system in which our allies can earn their own way and our own economy can continue to flourish. The free world can no longer afford the kinds of arbitrary restraints on trade that have continued ever since the war. On this problem I shall submit to the Congress detailed recommendations, after our Joint Commission on Foreign Economic Policy has made its report. ATOMIC ENERGY PROPOSAL As we maintain our military strength during the coming year and draw closer the bonds with our allies, we shall be in an improved position to discuss outstanding issues with the Soviet Union. Indeed we shall be glad to do so whenever there is a reasonable prospect of constructive results. In this spirit the atomic energy proposals of the United States were recently presented to the United Nations General Assembly. A truly constructive Soviet reaction will make possible a new start toward an era of peace, and away from the fatal road toward atomic war. DEFENSE Since our hope is peace, we owe ourselves and the world a candid explanation of the military measures we are taking to make that peace secure. As we enter this new year, our military power continues to grow. This power is for our own defense and to deter aggression. We shall not be aggressors, but we and our allies have and will maintain a massive capability to strike back. Here are some of the considerations in our defense planning: First, while determined to use atomic power to serve the usages of peace, we take into full account our great and growing number of nuclear weapons and the most effective means of using them against an aggressor if they are needed to preserve our freedom. Our defense will be stronger if, under appropriate security safeguards, we share with our allies certain knowledge of the tactical use of our nuclear weapons. I urge the Congress to provide the needed authority. Second, the usefulness of these new weapons creates new relationships between men and materials. These new relationships permit economies in the use of men as we build forces suited to our situation in the world today. As will be seen from the Budget Message on January 21, the airpower of our Navy and Air Force is receiving heavy emphasis. Third, our armed forces must regain maximum mobility of action. Our strategic reserves must be centrally placed and readily deployable to meet sudden aggression against ourselves and our allies. Fourth, our defense must rest on trained manpower and its most economical and mobile use. A professional corps is the heart of any security organization. It is necessarily the teacher and leader of those who serve temporarily in the discharge of the obligation to help defend the Republic. Pay alone will not retain in the career service of our armed forces the necessary numbers of long-term personnel. I strongly urge, therefore, a more generous use of other benefits important to service morale. Among these are more adequate living quarters and family housing units and medical care for dependents. Studies of military manpower have just been completed by the National Security Training Commission and a Committee appointed by the Director of the Office of Defense Mobilization. Evident weaknesses exist in the state of readiness and organization of our reserve forces. Measures to correct these weaknesses will be later submitted to the Congress. Fifth, the ability to convert swiftly from partial to all-out mobilization is imperative to our security. For the first time, mobilization officials know what the requirements are for 1,000 major items needed for military uses. These data, now being related to civilian requirements and our supply potential, will show us the gaps in our mobilization base. Thus we shall have more realistic plant-expansion and stockpiling goals. We shall speed their attainment. This Nation is at last to have an up-to-date mobilization base--the foundation of a sound defense program. Another part of this foundation is, of course, our continental transport system. Some of our vital heavy materials come increasingly from Canada. Indeed our relations with Canada, happily always close, involve more and more the unbreakable ties of strategic interdependence. Both nations now need the St. Lawrence Seaway for security as well as for economic reasons. I urge the Congress promptly to approve our participation in its construction. Sixth, military and non-military measures for continental defense must be and are being strengthened. In the current fiscal year we are allocating to these purposes an increasing portion of our effort, and in the next fiscal year we shall spend nearly a billion dollars more for them than in 1953. An indispensable part of our continental security is our civil defense effort. This will succeed only as we have the complete cooperation of State Governors, Mayors, and voluntary citizen groups. With their help we can advance a cooperative program which, if an attack should come, would save many lives and lessen destruction. The defense program recommended in the 1955 Budget is consistent with all of the considerations which I have just discussed. It is based on a new military program unanimously recommended by the Joint Chiefs of Staff and approved by me following consideration by the National Security Council. This new program will make and keep America strong in an age of peril. Nothing should bar its attainment. The international and defense policies which I have outlined will enable us to negotiate from a position of strength as we hold our resolute course toward a peaceful world. We now turn to matters which are normally characterized as domestic, well realizing that what we do abroad affects every problem at home--from the amount of taxes to our very state of mind. INTERNAL SECURITY Under the standards established for the new employee security program, more than 2,200 employees have been separated from the Federal government. Our national security demands that the investigation of new employees and the evaluation of derogatory information respecting present employees be expedited and concluded at the earliest possible date. I shall recommend that the Congress provide additional funds where necessary to speed these important procedures. From the special employment standards of the Federal government I turn now to a matter relating to American citizenship. The subversive character of the Communist Party in the United States has been clearly demonstrated in many ways, including court proceedings. We should recognize by law a fact that is plain to all thoughtful citizens-that we are dealing here with actions akin to treason--that when a citizen knowingly participates in the Communist conspiracy he no longer holds allegiance to the United States. I recommend that Congress enact legislation to provide that a citizen of the United States who is convicted in the courts of hereafter conspiring to advocate the overthrow of this government by force or violence be treated as having, by such act, renounced his allegiance to the United States and forfeited his United States citizenship. In addition, the Attorney General will soon appear before your Committees to present his recommendations for needed additional legal weapons with which to combat subversion in our country and to deal with the question of claimed immunity. II. STRONG ECONOMY I turn now to the second great purpose of our government: Along with the protection of freedom, the maintenance of a strong and growing economy. The American economy is one of the wonders of the world. It undergirds our international position, our military security, and the standard of living of every citizen. This Administration is determined to keep our economy strong and to keep it growing. At this moment we are in transition from a wartime to a peacetime economy. I am confident that we can complete this transition without serious interruption in our economic growth. But we shall not leave this vital matter to chance. Economic preparedness is fully as important to the nation as military preparedness. Subsequent special messages and the economic report on January 28 will set forth plans of the Administration and its recommendations for Congressional action. These will include flexible credit and debt management policies; tax measures to stimulate consumer and business spending; suitable lending, guaranteeing, insuring, and grant-in-aid activities; strengthened old-age and unemployment insurance measures; improved agricultural programs; public-works plans laid well in advance; enlarged opportunities for international trade and investment. This mere enumeration of these subjects implies the vast amount of study, coordination, and planning, to say nothing of authorizing legislation, that altogether make our economic preparedness complete. If new conditions arise that require additional administrative or legislative action, the Administration will still be ready. A government always ready, as this is, to take well-timed and vigorous action, and a business community willing, as ours is, to plan ,boldly and with confidence, can between them develop a climate assuring steady economic growth. THE BUDGET I shall submit to the Congress on January 21 the first budget prepared by this Administration, for the period July 1, 1954, through June 1955. This budget is adequate to the current needs of the government. It recognizes that a Federal budget should be a stabilizing factor in the economy. Its tax and expenditure programs will foster individual initiative and economic growth. Pending the transmittal of my Budget Message, I shall mention here only a few points about our budgetary situation. First, one of our initial acts was to revise, with the cooperation of the Congress, the Budget prepared before this Administration took office. Requests for new appropriations were greatly reduced. In addition, the spending level provided in that Budget for the current fiscal year has been reduced by about $7,000,000,000. In the next fiscal year we estimate a further reduction in expenditures of more than $5,000,000,000. This will reduce the spending level over the two fiscal years by more than $12,000,000,000. We are also reducing further our requests for new appropriations. Second, despite the substantial loss of revenue in the coming fiscal year, resulting from tax reductions now in effect and tax adjustments which I shall propose, our reduced spending will move the new budget closer to a balance. Third, by keeping new appropriation requests below estimated revenues, we continue to reduce the tremendous accumulation of unfinanced obligations incurred by the Government under past appropriations. Fourth, until those claims on our Government's revenues are further reduced, the growth in the public debt cannot be entirely stopped. Because of this--because the government's bills have to be paid every month, while the tax money to pay them comes in with great unevenness within the fiscal year--and because of the need for flexibility to manage this enormous debt, I find it necessary to renew my request for an increase in the statutory debt limit. TAXES The new budget provides for a lower level of taxation than has prevailed in preceding years. Six days ago individual income taxes were reduced and the excess profits tax expired. These tax reductions are justified only because of the substantial reductions we already have made and are making in governmental expenditures. As additional reductions in expenditures are brought gradually but surely into sight, further reductions in taxes can and will be made. When budget savings and sound governmental financing are assured, tax burdens should be reduced so that taxpayers may spend their own money in their own way. While we are moving toward lower levels of taxation we must thoroughly revise our whole tax system. The groundwork for this revision has already been laid by the Committee on Ways and Means of the House of Representatives, in close consultation with the Department of the Treasury. We should now remove the more glaring tax inequities, particularly on small taxpayers; reduce restraints on the growth of small business; and make other changes that will encourage initiative, enterprise and production. Twenty-five recommendations toward these ends will be contained in my budget message. Without attempting to summarize these manifold reforms, I can here illustrate their tendency. For example, we propose more liberal tax treatment for dependent children who work, for widows or widowers with dependent children, and for medical expenses. For the business that wants to expand or modernize its plant, we propose liberalized tax treatment of depreciation, research and development expenses, and retained earnings. Because of the present need for revenue the corporation income tax should be kept at the current rate of 52% for another year, and the excise taxes scheduled to be reduced on April first, including those on liquor, tobacco, gasoline and automobiles, should be continued at present rates. Immediate extension of the Renegotiation Act of 1951 is also needed to eliminate excessive profits and to prevent waste of public funds in the purchase of defense materials. AGRICULTURE The well being of our 160 million people demands a stable and prosperous agriculture. Conversely, every farmer knows he cannot prosper unless all America prospers. As we seek to promote increases in our standard of living, we must be sure that the farmer fairly shares in that increase. Therefore, a farm program promoting stability and prosperity in all elements of our agriculture is urgently needed. Agricultural laws now in effect successfully accomplished their wartime purpose of encouraging maximum production of many crops. Today, production of these crops at such levels far exceeds present demand. Yet the laws encouraging such production are still in effect. The storage facilities of the Commodity Credit Corporation bulge with surplus stocks of dairy products, wheat, cotton, corn, and certain vegetable oils; and the Corporation's presently authorized borrowing authority--$6,750,000,000--is nearly exhausted. Some products, priced out of domestic markets, and others, priced out of world markets, have piled up in government hands. In a world in which millions of people are hungry, destruction of food would, of course, be unconscionable. Yet surplus stocks continue to threaten the market and in spite of the acreage controls authorized by present law, surpluses will continue to accumulate. We confront two alternatives. The first is to impose still greater acreage reductions for some crops and apply rigid Federal controls over the use of the diverted acres. This will regiment the production of every basic agricultural crop. It will place every producer of those crops under the domination and control of the Federal government in Washington. This alternative is contrary to the fundamental interests, not only of the farmer, but of the Nation as a whole. Nor is it a real solution to the problem facing us. The second alternative is to permit the market price for these agricultural products gradually to have a greater influence on the planning of production by farmers, while continuing the assistance of the government. This is the sound approach. To make it effective, surpluses existing when the new program begins must be insulated from the normal channels of trade for special uses. These uses would include school lunch programs, disaster relief, emergency assistance to foreign friends, and of particular importance the stockpiling of reserves for a national emergency. Building on the agricultural laws of 1948 and 1949, we should establish a price support program with enough flexibility to attract the production of needed supplies of essential commodities and to stimulate the consumption of those commodities that are flooding American markets. Transition to modernized parity must be accomplished gradually. In no case should there be an abrupt downward change in the dollar level or in the percentage level of price supports. Next Monday I shall transmit to the Congress my detailed recommendations embodying this approach. They have been developed through the cooperation of innumerable individuals vitally interested in agriculture. My special message on Monday will briefly describe the consultative and advisory processes to which this whole program has been subjected during the past ten months. I have chosen this farm program because it will build markets, protect the consumers' food supply, and move food into consumption instead of into storage. It is a program that will remove the threat to the farmer of these overhanging surpluses, a program, also, that will stimulate production when a commodity is scarce and encourage consumption when nature is bountiful. Moreover, it will promote the individual freedom, responsibility, and initiative which distinguish American agriculture. And, by helping our agriculture achieve full parity in the market, it promises our farmers a higher and steadier financial return over the years than any alternative plan. CONSERVATION Part of our Nation's precious heritage is its natural resources. It is the common responsibility of Federal, state, and local governments to improve and develop them, always working in the closest harmony and partnership. All Federal conservation and resource development projects are being reappraised. Sound projects now under way will be continued. New projects in which the Federal Government has a part must be economically sound, with local sharing of cost wherever appropriate and feasible. In the next fiscal year work will be started on twenty-three projects that meet these standards. The Federal Government will continue to construct and operate economically sound flood control, power, irrigation and water supply projects wherever these projects are beyond the capacity of local initiative, public or private, and consistent with the needs of the whole Nation. Our conservation program will also take into account the important role played by farmers in protecting our soil resources. I recommend enactment of legislation to strengthen agricultural conservation and upstream flood prevention work, and to achieve a better balance with major flood control structures in the down-stream areas. Recommendations will be made from time to time for the adoption of: A uniform and consistent water resources policy; A revised public lands policy; and A sound program for safeguarding the domestic production of critical and strategic metals and minerals. In addition we shall continue to protect and improve our national forests, parks, monuments and other natural and historic sites, as well as our fishery and wildlife resources. I hope that pending legislation to improve the conservation and management of publicly-owned grazing lands in national forests will soon be approved by the Congress. NATIONAL HIGHWAYS To protect the vital interest of every citizen in a safe and adequate highway system, the Federal Government is continuing its central role in the Federal Aid Highway Program. So that maximum progress can be made to overcome present inadequacies in the Interstate Highway System, we must continue the Federal gasoline tax at two cents per gallon. This will require cancellation of the ½¢ decrease which otherwise will become effective April 1st, and will maintain revenues so that an expanded highway program can be undertaken. When the Commission on Intergovernmental Relations completes its study of the present system of financing highway construction, I shall promptly submit it for consideration by the Congress and the governors of the states. POST OFFICE It is apparent that the substantial savings already made, and to be made, by the Post Office Department cannot eliminate the postal deficit. I recommend, therefore, that the Congress approve the bill now pending in the House of Representatives providing for the adjustment of certain postal rates. To handle the long term aspects of this, I also recommend that the Congress create a permanent commission to establish fair and reasonable postal rates from time to time in the future. III. HUMAN PROBLEMS Along with the protection of freedom and maintenance of a strong and growing economy, this Administration recognizes a third great purpose of government: concern for the human problems of our citizens. In a modern industrial society, banishment of destitution and cushioning the shock of personal disaster on the individual are proper concerns of all levels of government, including the federal government. This is especially true where remedy and prevention alike are beyond the individual's capacity. LABOR AND WELFARE Of the many problems in this area, those I shall first discuss are of particular concern to the members of our great labor force, who with their heads, hearts and hands produce so much of the wealth of our country. Protection against the hazards of temporary unemployment should be extended to some 6½ millions of workers, including civilian Federal workers, who now lack this safeguard. Moreover, the Secretary of Labor is making available to the states studies and recommendations in the fields of weekly benefits, periods of protection and extension of coverage. The Economic Report will consider the related matter of minimum wages and their coverage. The Labor Management Relations Act of 3947 is basically a sound law. However, six years of experience have revealed that in some respects it can be improved. On January 11, I shall forward to the Congress suggestions for changes designed to reinforce the basic objectives of the Act. Our basic social security program, the Old-Age and Survivors Insurance system, to which individuals contribute during their productive years and receive benefits based on previous earnings, is designed to shield them from destitution. Last year I recommended extension of the social insurance system to include more than 10,000,000 additional persons. I ask that this extension soon be accomplished. This and other major improvements in the insurance system will bring substantial benefit increases and broaden the membership of the insurance system, thus diminishing the need for Federal grants-in-aid for such purposes. A new formula will therefore be proposed, permitting progressive reduction in such grants as the need for them declines. Federal grant-in-aid welfare programs, now based on widely varying formulas, should be simplified. Concrete proposals on fourteen of them will be suggested to the appropriate Committees. The program for rehabilitation of the disabled especially needs strengthening. Through special vocational training, this program presently returns each year some 60,000 handicapped individuals to productive work. Far more disabled people can be saved each year from idleness and dependence if this program is gradually increased. My more detailed recommendations on this and the other social insurance problems I have mentioned will be sent to the Congress on January 14th. HEALTH I am flatly opposed to the socialization of medicine. The great need for hospital and medical services can best be met by the initiative of private plans. But it is unfortunately a fact that medical costs are rising and already impose severe hardships on many families. The Federal Government can do many helpful things and still carefully avoid the socialization of medicine. The Federal Government should encourage medical research in its battle with such mortal diseases as cancer and heart ailments, and should continue to help the states in their health and rehabilitation programs. The present Hospital Survey and Construction Act should be broadened in order to assist in the development of adequate facilities for the chronically ill, and to encourage the construction of diagnostic centers, rehabilitation facilities, and nursing homes. The war on disease also needs a better working relationship between Government and private initiative. Private and non-profit hospital and medical insurance plans are already in the field, soundly based on the experience and initiative of the people in their various communities. A limited Government reinsurance service would permit the private and non-profit insurance companies to offer broader protection to more of the many families which want and should have it. On January 18 I shall forward to the Congress a special message presenting this Administration's health program in its detail. EDUCATION Youth--our greatest resource--is being seriously neglected in a vital respect. The nation as a whole is not preparing teachers or building schools fast enough to keep up with the increase in our population. The preparation of teachers as, indeed, the control and direction of public education policy, is a state and local responsibility. However, the Federal Government should stand ready to assist states which demonstrably cannot provide sufficient school buildings. In order to appraise the needs, I hope that this year a conference on education will be held in each state, culminating in a national conference. From these conferences on education, every level of government--from the Federal Government to each local school board--should gain the information with which to attack this serious problem. HOUSING The details of a program to enlarge and improve the opportunities for our people to acquire good homes will be presented to the Congress by special message on January This program will include: Modernization of the home mortgage insurance program of the Federal Government; Redirection of the present system of loans and grants-in-aid to cities for slum clearance and redevelopment; Extension of the advantages of insured lending to private credit engaged in this task of rehabilitating obsolete neighborhoods; Insurance of long-term, mortgage loans, with small down payment for low-income families; and, until alternative programs prove more effective, Continuation of the public housing program adopted in the Housing Act of 1949. If the individual, the community, the State and federal governments will alike apply themselves, every American family can have a decent home. VETERANS ADMINISTRATION The internal reorganization of the Veterans Administration is proceeding with my full approval. When completed, it will afford a single agency whose services, including medical facilities, will be better adapted to the needs of those 20,000,000 veterans to whom this Nation owes so much. SUFFRAGE My few remaining recommendations all relate to a basic right of our citizens--that of being represented in the decisions of the government. I hope that the States will cooperate with the Congress in adopting uniform standards in their voting laws that will make it possible for our citizens in the armed forces overseas to vote. In the District of Columbia the time is long overdue for granting national suffrage to its citizens and also applying the principle of local self-government to the Nation's Capital. I urge the Congress to move promptly in this direction and also to revise District revenue measures to provide needed public works improvements. The people of Hawaii are ready for statehood. I renew my request for this legislation in order that Hawaii may elect its State officials and its representatives in Washington along with the rest of the country this fall. For years our citizens between the ages of 18 and 21 have, in time of peril, been summoned to fight for America. They should participate in the political process that produces this fateful summons. I urge Congress to propose to the States a constitutional amendment permitting citizens to vote when they reach the age of 18. CONCLUSION I want to add one final word about the general purport of these many recommendations. Our government's powers are wisely limited by the Constitution; but quite apart from those limitations, there are things which no government can do or should try to do. A government can strive, as ours is striving, to maintain an economic system whose doors are open to enterprise and ambition--those personal qualities on which economic growth largely depends. But enterprise and ambition are qualities which no government can supply. Fortunately no American government need concern itself on this score; our people have these qualities in good measure. A government can sincerely strive for peace, as ours is striving, and ask its people to make sacrifices for the sake of peace. But no government can place peace in the hearts of foreign rulers. It is our duty then to ourselves and to freedom itself to remain strong in all those ways--spiritual, economic, military--that will give us maximum safety against the possibility of aggressive action by others. No government can inoculate its people against the fatal materialism that plagues our age. Happily, our people, though blessed with more material goods than any people in history, have always reserved their first allegiance to the kingdom of the spirit, which is the true source of that freedom we value above all material things. But a government can try, as ours tries, to sense the deepest aspirations of the people, and to express them in political action at home and abroad. So long as action and aspiration humbly and earnestly seek favor in the sight of the Almighty, there is no end to America's forward road; there is no obstacle on it she will not surmount in her march toward a lasting peace in a free and prosperous world. DWIGHT D. EISENHOWER
Mr. President, Mr. Speaker, Members of the Eighty-third Congress: It is a high honor again to present to the Congress my views on the state of the Union and to recommend measures to advance the security, prosperity, and well-being of the American people. All branches of this Government--and I venture to say both of our great parties--can support the general objective of the recommendations I make today, for that objective is the building of a stronger America. A nation whose every citizen has good reason for bold hope; where effort is rewarded and prosperity is shared; where freedom expands and peace is secure--that is what I mean by a stronger America. Toward this objective a real momentum has been developed during this Administration's first year in office. We mean to continue that momentum and to increase it. We mean to build a better future for this nation. Much for which we may be thankful has happened during the past year. First of all we are deeply grateful that our sons no longer die on the distant mountains of Korea. Although they are still called from our homes to military service, they are no longer called to the field of battle. The nation has just completed the most prosperous year in its history. The damaging effect of inflation on the wages, pensions, salaries and savings of us all has been brought under control. Taxes have begun to go down. The cost of our government has been reduced and its work proceeds with some 183,000 fewer employees; thus the discouraging trend of modern governments toward their own limitless expansion has in our case been reversed. The cost of armaments becomes less oppressive as we near our defense goals; yet we are militarily stronger every day. During the year, creation of the new Cabinet Department of Health, Education, and Welfare symbolized the government's permanent concern with the human problems of our citizens. Segregation in the armed forces and other Federal activities is on the way out. We have also made progress toward its elimination in the District of Columbia. These are steps in the continuing effort to eliminate inter-racial difficulty. Some developments beyond our shores have been equally encouraging. Communist aggression, halted in Korea, continues to meet in Indo-china the vigorous resistance of France and the Associated States, assisted by timely aid from our country. In West Germany, in Iran, and in other areas of the world, heartening political victories have been won by the forces of stability and freedom. Slowly but surely, the free world gathers strength. Meanwhile, from behind the iron curtain, there are signs that tyranny is in trouble and reminders that its structure is as brittle as its surface is hard. There has been in fact a great strategic change in the world during the past year. That precious intangible, the initiative, is becoming ours. Our policy, not limited to mere reaction against crises provoked by others, is free to develop along lines of our choice not only abroad, but also at home. As a major theme for American policy during the coming year, let our joint determination be to hold this new initiative and to use it. We shall use this initiative to promote three broad purposes: First, to protect the freedom of our people; second, to maintain a strong, growing economy; third, to concern ourselves with the human problems of the individual citizen. Only by active concern for each of these purposes can we be sure that we are on the forward road to a better and a stronger America. All my recommendations today are in furtherance of these three purposes. I. FOREIGN AFFAIRS American freedom is threatened so long as the world Communist conspiracy exists in its present scope, power and hostility. More closely than ever before, American freedom is interlocked with the freedom of other people. In the unity of the free world lies our best chance to reduce the Communist threat without war. In the task of maintaining this unity and strengthening all its parts, the greatest responsibility falls naturally on those who, like ourselves, retain the most freedom and strength. We shall, therefore, continue to advance the because of freedom on foreign fronts. In the Far East, we retain our vital interest in Korea. We have negotiated with the Republic of Korea a mutual security pact, which develops our security system for the Pacific and which I shall promptly submit to the Senate for its consent to ratification. We are prepared to meet any renewal of armed aggression in Korea. We shall maintain indefinitely our bases in Okinawa. I shall ask the Congress to authorize continued material assistance to hasten the successful conclusion of the struggle in Indo-china. This assistance will also bring closer the day when the Associated States may enjoy the independence already assured by France. We shall also continue military and economic aid to the Nationalist Government of China. In South Asia, profound changes are taking place in free nations which are demonstrating their ability to progress through democratic methods. They provide an inspiring contrast to the dictatorial methods and backward course of events in Communist China. In these continuing efforts, the free peoples of South Asia can be assured of the support of the United States. In the Middle East, where tensions and serious problems exist, we will show sympathetic and impartial friendship. In Western Europe our policy rests firmly on the North Atlantic Treaty. It will remain so based as far ahead as we can see. Within its organization, the building of a united European community, including France and Germany, is vital to a free and self-reliant Europe. This will be promoted by the European Defense Community which offers assurance of European security. With the coming of unity to Western Europe, the assistance this Nation can render for the security of Europe and the free world will be multiplied in effectiveness. In the Western Hemisphere we shall continue to develop harmonious and mutually beneficial cooperation with our neighbors. Indeed, solid friendship with all our American neighbors is a cornerstone of our entire policy. In the world as a whole, the United Nations, admittedly still in a state of evolution, means much to the United States. It has given uniquely valuable services in many places where violence threatened. It is the only real world forum where we have the opportunity for international presentation and rebuttal. It is a place where the nations of the world can, if they have the will, take collective action for peace and justice. It is a place where the guilt can be squarely assigned to those who fail to take all necessary steps to keep the peace. The United Nations deserves our continued firm support. FOREIGN ASSISTANCE AND TRADE In the practical application of our foreign policy, we enter the field of foreign assistance and trade. Military assistance must be continued. Technical assistance must be maintained. Economic assistance can be reduced. However, our economic programs in Korea and in a few other critical places of the world are especially important, and I shall ask Congress to continue them in the next fiscal year. The forthcoming Budget Message will propose maintenance of the Presidential power of transferability of all assistance funds and will ask authority to merge these funds with the regular defense funds. It will also propose that the Secretary of Defense have primary responsibility for the administration of foreign military assistance in accordance with the policy guidance of the Secretary of State. The fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved. By continuing to surpass her prewar levels of economic activity, Western Europe gains self-reliance. Thus our relationship enters a new phase which can bring results beneficial to our taxpayers and our allies alike, if still another step is taken. This step is the creation of a healthier and freer system of trade and payments within the free world--a system in which our allies can earn their own way and our own economy can continue to flourish. The free world can no longer afford the kinds of arbitrary restraints on trade that have continued ever since the war. On this problem I shall submit to the Congress detailed recommendations, after our Joint Commission on Foreign Economic Policy has made its report. ATOMIC ENERGY PROPOSAL As we maintain our military strength during the coming year and draw closer the bonds with our allies, we shall be in an improved position to discuss outstanding issues with the Soviet Union. Indeed we shall be glad to do so whenever there is a reasonable prospect of constructive results. In this spirit the atomic energy proposals of the United States were recently presented to the United Nations General Assembly. A truly constructive Soviet reaction will make possible a new start toward an era of peace, and away from the fatal road toward atomic war. DEFENSE Since our hope is peace, we owe ourselves and the world a candid explanation of the military measures we are taking to make that peace secure. As we enter this new year, our military power continues to grow. This power is for our own defense and to deter aggression. We shall not be aggressors, but we and our allies have and will maintain a massive capability to strike back. Here are some of the considerations in our defense planning: First, while determined to use atomic power to serve the usages of peace, we take into full account our great and growing number of nuclear weapons and the most effective means of using them against an aggressor if they are needed to preserve our freedom. Our defense will be stronger if, under appropriate security safeguards, we share with our allies certain knowledge of the tactical use of our nuclear weapons. I urge the Congress to provide the needed authority. Second, the usefulness of these new weapons creates new relationships between men and materials. These new relationships permit economies in the use of men as we build forces suited to our situation in the world today. As will be seen from the Budget Message on January 21, the airpower of our Navy and Air Force is receiving heavy emphasis. Third, our armed forces must regain maximum mobility of action. Our strategic reserves must be centrally placed and readily deployable to meet sudden aggression against ourselves and our allies. Fourth, our defense must rest on trained manpower and its most economical and mobile use. A professional corps is the heart of any security organization. It is necessarily the teacher and leader of those who serve temporarily in the discharge of the obligation to help defend the Republic. Pay alone will not retain in the career service of our armed forces the necessary numbers of long-term personnel. I strongly urge, therefore, a more generous use of other benefits important to service morale. Among these are more adequate living quarters and family housing units and medical care for dependents. Studies of military manpower have just been completed by the National Security Training Commission and a Committee appointed by the Director of the Office of Defense Mobilization. Evident weaknesses exist in the state of readiness and organization of our reserve forces. Measures to correct these weaknesses will be later submitted to the Congress. Fifth, the ability to convert swiftly from partial to all-out mobilization is imperative to our security. For the first time, mobilization officials know what the requirements are for 1,000 major items needed for military uses. These data, now being related to civilian requirements and our supply potential, will show us the gaps in our mobilization base. Thus we shall have more realistic plant-expansion and stockpiling goals. We shall speed their attainment. This Nation is at last to have an up-to-date mobilization base--the foundation of a sound defense program. Another part of this foundation is, of course, our continental transport system. Some of our vital heavy materials come increasingly from Canada. Indeed our relations with Canada, happily always close, involve more and more the unbreakable ties of strategic interdependence. Both nations now need the St. Lawrence Seaway for security as well as for economic reasons. I urge the Congress promptly to approve our participation in its construction. Sixth, military and non-military measures for continental defense must be and are being strengthened. In the current fiscal year we are allocating to these purposes an increasing portion of our effort, and in the next fiscal year we shall spend nearly a billion dollars more for them than in 1953. An indispensable part of our continental security is our civil defense effort. This will succeed only as we have the complete cooperation of State Governors, Mayors, and voluntary citizen groups. With their help we can advance a cooperative program which, if an attack should come, would save many lives and lessen destruction. The defense program recommended in the 1955 Budget is consistent with all of the considerations which I have just discussed. It is based on a new military program unanimously recommended by the Joint Chiefs of Staff and approved by me following consideration by the National Security Council. This new program will make and keep America strong in an age of peril. Nothing should bar its attainment. The international and defense policies which I have outlined will enable us to negotiate from a position of strength as we hold our resolute course toward a peaceful world. We now turn to matters which are normally characterized as domestic, well realizing that what we do abroad affects every problem at home--from the amount of taxes to our very state of mind. INTERNAL SECURITY Under the standards established for the new employee security program, more than 2,200 employees have been separated from the Federal government. Our national security demands that the investigation of new employees and the evaluation of derogatory information respecting present employees be expedited and concluded at the earliest possible date. I shall recommend that the Congress provide additional funds where necessary to speed these important procedures. From the special employment standards of the Federal government I turn now to a matter relating to American citizenship. The subversive character of the Communist Party in the United States has been clearly demonstrated in many ways, including court proceedings. We should recognize by law a fact that is plain to all thoughtful citizens-that we are dealing here with actions akin to treason--that when a citizen knowingly participates in the Communist conspiracy he no longer holds allegiance to the United States. I recommend that Congress enact legislation to provide that a citizen of the United States who is convicted in the courts of hereafter conspiring to advocate the overthrow of this government by force or violence be treated as having, by such act, renounced his allegiance to the United States and forfeited his United States citizenship. In addition, the Attorney General will soon appear before your Committees to present his recommendations for needed additional legal weapons with which to combat subversion in our country and to deal with the question of claimed immunity. II. STRONG ECONOMY I turn now to the second great purpose of our government: Along with the protection of freedom, the maintenance of a strong and growing economy. The American economy is one of the wonders of the world. It undergirds our international position, our military security, and the standard of living of every citizen. This Administration is determined to keep our economy strong and to keep it growing. At this moment we are in transition from a wartime to a peacetime economy. I am confident that we can complete this transition without serious interruption in our economic growth. But we shall not leave this vital matter to chance. Economic preparedness is fully as important to the nation as military preparedness. Subsequent special messages and the economic report on January 28 will set forth plans of the Administration and its recommendations for Congressional action. These will include flexible credit and debt management policies; tax measures to stimulate consumer and business spending; suitable lending, guaranteeing, insuring, and grant-in-aid activities; strengthened old-age and unemployment insurance measures; improved agricultural programs; public-works plans laid well in advance; enlarged opportunities for international trade and investment. This mere enumeration of these subjects implies the vast amount of study, coordination, and planning, to say nothing of authorizing legislation, that altogether make our economic preparedness complete. If new conditions arise that require additional administrative or legislative action, the Administration will still be ready. A government always ready, as this is, to take well-timed and vigorous action, and a business community willing, as ours is, to plan ,boldly and with confidence, can between them develop a climate assuring steady economic growth. THE BUDGET I shall submit to the Congress on January 21 the first budget prepared by this Administration, for the period July 1, 1954, through June 1955. This budget is adequate to the current needs of the government. It recognizes that a Federal budget should be a stabilizing factor in the economy. Its tax and expenditure programs will foster individual initiative and economic growth. Pending the transmittal of my Budget Message, I shall mention here only a few points about our budgetary situation. First, one of our initial acts was to revise, with the cooperation of the Congress, the Budget prepared before this Administration took office. Requests for new appropriations were greatly reduced. In addition, the spending level provided in that Budget for the current fiscal year has been reduced by about $7,000,000,000. In the next fiscal year we estimate a further reduction in expenditures of more than $5,000,000,000. This will reduce the spending level over the two fiscal years by more than $12,000,000,000. We are also reducing further our requests for new appropriations. Second, despite the substantial loss of revenue in the coming fiscal year, resulting from tax reductions now in effect and tax adjustments which I shall propose, our reduced spending will move the new budget closer to a balance. Third, by keeping new appropriation requests below estimated revenues, we continue to reduce the tremendous accumulation of unfinanced obligations incurred by the Government under past appropriations. Fourth, until those claims on our Government's revenues are further reduced, the growth in the public debt cannot be entirely stopped. Because of this--because the government's bills have to be paid every month, while the tax money to pay them comes in with great unevenness within the fiscal year--and because of the need for flexibility to manage this enormous debt, I find it necessary to renew my request for an increase in the statutory debt limit. TAXES The new budget provides for a lower level of taxation than has prevailed in preceding years. Six days ago individual income taxes were reduced and the excess profits tax expired. These tax reductions are justified only because of the substantial reductions we already have made and are making in governmental expenditures. As additional reductions in expenditures are brought gradually but surely into sight, further reductions in taxes can and will be made. When budget savings and sound governmental financing are assured, tax burdens should be reduced so that taxpayers may spend their own money in their own way. While we are moving toward lower levels of taxation we must thoroughly revise our whole tax system. The groundwork for this revision has already been laid by the Committee on Ways and Means of the House of Representatives, in close consultation with the Department of the Treasury. We should now remove the more glaring tax inequities, particularly on small taxpayers; reduce restraints on the growth of small business; and make other changes that will encourage initiative, enterprise and production. Twenty-five recommendations toward these ends will be contained in my budget message. Without attempting to summarize these manifold reforms, I can here illustrate their tendency. For example, we propose more liberal tax treatment for dependent children who work, for widows or widowers with dependent children, and for medical expenses. For the business that wants to expand or modernize its plant, we propose liberalized tax treatment of depreciation, research and development expenses, and retained earnings. Because of the present need for revenue the corporation income tax should be kept at the current rate of 52% for another year, and the excise taxes scheduled to be reduced on April first, including those on liquor, tobacco, gasoline and automobiles, should be continued at present rates. Immediate extension of the Renegotiation Act of 1951 is also needed to eliminate excessive profits and to prevent waste of public funds in the purchase of defense materials. AGRICULTURE The well being of our 160 million people demands a stable and prosperous agriculture. Conversely, every farmer knows he cannot prosper unless all America prospers. As we seek to promote increases in our standard of living, we must be sure that the farmer fairly shares in that increase. Therefore, a farm program promoting stability and prosperity in all elements of our agriculture is urgently needed. Agricultural laws now in effect successfully accomplished their wartime purpose of encouraging maximum production of many crops. Today, production of these crops at such levels far exceeds present demand. Yet the laws encouraging such production are still in effect. The storage facilities of the Commodity Credit Corporation bulge with surplus stocks of dairy products, wheat, cotton, corn, and certain vegetable oils; and the Corporation's presently authorized borrowing authority--$6,750,000,000--is nearly exhausted. Some products, priced out of domestic markets, and others, priced out of world markets, have piled up in government hands. In a world in which millions of people are hungry, destruction of food would, of course, be unconscionable. Yet surplus stocks continue to threaten the market and in spite of the acreage controls authorized by present law, surpluses will continue to accumulate. We confront two alternatives. The first is to impose still greater acreage reductions for some crops and apply rigid Federal controls over the use of the diverted acres. This will regiment the production of every basic agricultural crop. It will place every producer of those crops under the domination and control of the Federal government in Washington. This alternative is contrary to the fundamental interests, not only of the farmer, but of the Nation as a whole. Nor is it a real solution to the problem facing us. The second alternative is to permit the market price for these agricultural products gradually to have a greater influence on the planning of production by farmers, while continuing the assistance of the government. This is the sound approach. To make it effective, surpluses existing when the new program begins must be insulated from the normal channels of trade for special uses. These uses would include school lunch programs, disaster relief, emergency assistance to foreign friends, and of particular importance the stockpiling of reserves for a national emergency. Building on the agricultural laws of 1948 and 1949, we should establish a price support program with enough flexibility to attract the production of needed supplies of essential commodities and to stimulate the consumption of those commodities that are flooding American markets. Transition to modernized parity must be accomplished gradually. In no case should there be an abrupt downward change in the dollar level or in the percentage level of price supports. Next Monday I shall transmit to the Congress my detailed recommendations embodying this approach. They have been developed through the cooperation of innumerable individuals vitally interested in agriculture. My special message on Monday will briefly describe the consultative and advisory processes to which this whole program has been subjected during the past ten months. I have chosen this farm program because it will build markets, protect the consumers' food supply, and move food into consumption instead of into storage. It is a program that will remove the threat to the farmer of these overhanging surpluses, a program, also, that will stimulate production when a commodity is scarce and encourage consumption when nature is bountiful. Moreover, it will promote the individual freedom, responsibility, and initiative which distinguish American agriculture. And, by helping our agriculture achieve full parity in the market, it promises our farmers a higher and steadier financial return over the years than any alternative plan. CONSERVATION Part of our Nation's precious heritage is its natural resources. It is the common responsibility of Federal, state, and local governments to improve and develop them, always working in the closest harmony and partnership. All Federal conservation and resource development projects are being reappraised. Sound projects now under way will be continued. New projects in which the Federal Government has a part must be economically sound, with local sharing of cost wherever appropriate and feasible. In the next fiscal year work will be started on twenty-three projects that meet these standards. The Federal Government will continue to construct and operate economically sound flood control, power, irrigation and water supply projects wherever these projects are beyond the capacity of local initiative, public or private, and consistent with the needs of the whole Nation. Our conservation program will also take into account the important role played by farmers in protecting our soil resources. I recommend enactment of legislation to strengthen agricultural conservation and upstream flood prevention work, and to achieve a better balance with major flood control structures in the down-stream areas. Recommendations will be made from time to time for the adoption of: A uniform and consistent water resources policy; A revised public lands policy; and A sound program for safeguarding the domestic production of critical and strategic metals and minerals. In addition we shall continue to protect and improve our national forests, parks, monuments and other natural and historic sites, as well as our fishery and wildlife resources. I hope that pending legislation to improve the conservation and management of publicly-owned grazing lands in national forests will soon be approved by the Congress. NATIONAL HIGHWAYS To protect the vital interest of every citizen in a safe and adequate highway system, the Federal Government is continuing its central role in the Federal Aid Highway Program. So that maximum progress can be made to overcome present inadequacies in the Interstate Highway System, we must continue the Federal gasoline tax at two cents per gallon. This will require cancellation of the ½¢ decrease which otherwise will become effective April 1st, and will maintain revenues so that an expanded highway program can be undertaken. When the Commission on Intergovernmental Relations completes its study of the present system of financing highway construction, I shall promptly submit it for consideration by the Congress and the governors of the states. POST OFFICE It is apparent that the substantial savings already made, and to be made, by the Post Office Department cannot eliminate the postal deficit. I recommend, therefore, that the Congress approve the bill now pending in the House of Representatives providing for the adjustment of certain postal rates. To handle the long term aspects of this, I also recommend that the Congress create a permanent commission to establish fair and reasonable postal rates from time to time in the future. III. HUMAN PROBLEMS Along with the protection of freedom and maintenance of a strong and growing economy, this Administration recognizes a third great purpose of government: concern for the human problems of our citizens. In a modern industrial society, banishment of destitution and cushioning the shock of personal disaster on the individual are proper concerns of all levels of government, including the federal government. This is especially true where remedy and prevention alike are beyond the individual's capacity. LABOR AND WELFARE Of the many problems in this area, those I shall first discuss are of particular concern to the members of our great labor force, who with their heads, hearts and hands produce so much of the wealth of our country. Protection against the hazards of temporary unemployment should be extended to some 6½ millions of workers, including civilian Federal workers, who now lack this safeguard. Moreover, the Secretary of Labor is making available to the states studies and recommendations in the fields of weekly benefits, periods of protection and extension of coverage. The Economic Report will consider the related matter of minimum wages and their coverage. The Labor Management Relations Act of 3947 is basically a sound law. However, six years of experience have revealed that in some respects it can be improved. On January 11, I shall forward to the Congress suggestions for changes designed to reinforce the basic objectives of the Act. Our basic social security program, the Old-Age and Survivors Insurance system, to which individuals contribute during their productive years and receive benefits based on previous earnings, is designed to shield them from destitution. Last year I recommended extension of the social insurance system to include more than 10,000,000 additional persons. I ask that this extension soon be accomplished. This and other major improvements in the insurance system will bring substantial benefit increases and broaden the membership of the insurance system, thus diminishing the need for Federal grants-in-aid for such purposes. A new formula will therefore be proposed, permitting progressive reduction in such grants as the need for them declines. Federal grant-in-aid welfare programs, now based on widely varying formulas, should be simplified. Concrete proposals on fourteen of them will be suggested to the appropriate Committees. The program for rehabilitation of the disabled especially needs strengthening. Through special vocational training, this program presently returns each year some 60,000 handicapped individuals to productive work. Far more disabled people can be saved each year from idleness and dependence if this program is gradually increased. My more detailed recommendations on this and the other social insurance problems I have mentioned will be sent to the Congress on January 14th. HEALTH I am flatly opposed to the socialization of medicine. The great need for hospital and medical services can best be met by the initiative of private plans. But it is unfortunately a fact that medical costs are rising and already impose severe hardships on many families. The Federal Government can do many helpful things and still carefully avoid the socialization of medicine. The Federal Government should encourage medical research in its battle with such mortal diseases as cancer and heart ailments, and should continue to help the states in their health and rehabilitation programs. The present Hospital Survey and Construction Act should be broadened in order to assist in the development of adequate facilities for the chronically ill, and to encourage the construction of diagnostic centers, rehabilitation facilities, and nursing homes. The war on disease also needs a better working relationship between Government and private initiative. Private and non-profit hospital and medical insurance plans are already in the field, soundly based on the experience and initiative of the people in their various communities. A limited Government reinsurance service would permit the private and non-profit insurance companies to offer broader protection to more of the many families which want and should have it. On January 18 I shall forward to the Congress a special message presenting this Administration's health program in its detail. EDUCATION Youth--our greatest resource--is being seriously neglected in a vital respect. The nation as a whole is not preparing teachers or building schools fast enough to keep up with the increase in our population. The preparation of teachers as, indeed, the control and direction of public education policy, is a state and local responsibility. However, the Federal Government should stand ready to assist states which demonstrably cannot provide sufficient school buildings. In order to appraise the needs, I hope that this year a conference on education will be held in each state, culminating in a national conference. From these conferences on education, every level of government--from the Federal Government to each local school board--should gain the information with which to attack this serious problem. HOUSING The details of a program to enlarge and improve the opportunities for our people to acquire good homes will be presented to the Congress by special message on January This program will include: Modernization of the home mortgage insurance program of the Federal Government; Redirection of the present system of loans and grants-in-aid to cities for slum clearance and redevelopment; Extension of the advantages of insured lending to private credit engaged in this task of rehabilitating obsolete neighborhoods; Insurance of long-term, mortgage loans, with small down payment for low-income families; and, until alternative programs prove more effective, Continuation of the public housing program adopted in the Housing Act of 1949. If the individual, the community, the State and federal governments will alike apply themselves, every American family can have a decent home. VETERANS ADMINISTRATION The internal reorganization of the Veterans Administration is proceeding with my full approval. When completed, it will afford a single agency whose services, including medical facilities, will be better adapted to the needs of those 20,000,000 veterans to whom this Nation owes so much. SUFFRAGE My few remaining recommendations all relate to a basic right of our citizens--that of being represented in the decisions of the government. I hope that the States will cooperate with the Congress in adopting uniform standards in their voting laws that will make it possible for our citizens in the armed forces overseas to vote. In the District of Columbia the time is long overdue for granting national suffrage to its citizens and also applying the principle of local self-government to the Nation's Capital. I urge the Congress to move promptly in this direction and also to revise District revenue measures to provide needed public works improvements. The people of Hawaii are ready for statehood. I renew my request for this legislation in order that Hawaii may elect its State officials and its representatives in Washington along with the rest of the country this fall. For years our citizens between the ages of 18 and 21 have, in time of peril, been summoned to fight for America. They should participate in the political process that produces this fateful summons. I urge Congress to propose to the States a constitutional amendment permitting citizens to vote when they reach the age of 18. CONCLUSION I want to add one final word about the general purport of these many recommendations. Our government's powers are wisely limited by the Constitution; but quite apart from those limitations, there are things which no government can do or should try to do. A government can strive, as ours is striving, to maintain an economic system whose doors are open to enterprise and ambition--those personal qualities on which economic growth largely depends. But enterprise and ambition are qualities which no government can supply. Fortunately no American government need concern itself on this score; our people have these qualities in good measure. A government can sincerely strive for peace, as ours is striving, and ask its people to make sacrifices for the sake of peace. But no government can place peace in the hearts of foreign rulers. It is our duty then to ourselves and to freedom itself to remain strong in all those ways--spiritual, economic, military--that will give us maximum safety against the possibility of aggressive action by others. No government can inoculate its people against the fatal materialism that plagues our age. Happily, our people, though blessed with more material goods than any people in history, have always reserved their first allegiance to the kingdom of the spirit, which is the true source of that freedom we value above all material things. But a government can try, as ours tries, to sense the deepest aspirations of the people, and to express them in political action at home and abroad. So long as action and aspiration humbly and earnestly seek favor in the sight of the Almighty, there is no end to America's forward road; there is no obstacle on it she will not surmount in her march toward a lasting peace in a free and prosperous world. DWIGHT D. EISENHOWER
president speaker members of the congress it is a high honor again to present to the congress my views on the state of the union and to recommend measures to advance the security prosperity and of the american people all branches of this government and i venture to say both of our great parties can support the general objective of the recommendations i make today for that objective is the building of a stronger america a nation whose every citizen has good reason for bold hope where effort is rewarded and prosperity is shared where freedom expands and peace is secure that is what i mean by a stronger america toward this objective a real momentum has been developed during this administration first year in office we mean to continue that momentum and to increase it we mean to build a better future for this nation much for which we may be thankful has happened during the past year first of all we are deeply grateful that our sons no longer die on the distant mountains of korea although they are still called from our homes to military service they are no longer called to the field of battle the nation has just completed the most prosperous year in its history the damaging effect of inflation on the wages pensions salaries and savings of us all has been brought under control taxes have begun to go down the cost of our government has been reduced and its work proceeds with some fewer employees thus the discouraging trend of modern governments toward their own limitless expansion has in our case been reversed the cost of armaments becomes less oppressive as we near our defense goals yet we are militarily stronger every day during the year creation of the new cabinet department of health education and welfare symbolized the government permanent concern with the human problems of our citizens segregation in the armed forces and other federal activities is on the way out we have also made progress toward its elimination in the district of columbia these are steps in the continuing effort to eliminate difficulty some developments beyond our shores have been equally encouraging communist aggression halted in korea continues to meet in the vigorous resistance of france and the associated states assisted by timely aid from our country in west germany in iran and in other areas of the world heartening political victories have been won by the forces of stability and freedom slowly but surely the free world gathers strength meanwhile from behind the iron curtain there are signs that tyranny is in trouble and reminders that its structure is as brittle as its surface is hard there has been in fact a great strategic change in the world during the past year that precious intangible the initiative is becoming ours our policy not limited to mere reaction against crises provoked by others is free to develop along lines of our choice not only abroad but also at home as a major theme for american policy during the coming year let our joint determination be to hold this new initiative and to use it we shall use this initiative to promote three broad purposes first to protect the freedom of our people second to maintain a strong growing economy third to concern ourselves with the human problems of the individual citizen only by active concern for each of these purposes can we be sure that we are on the forward road to a better and a stronger america all my recommendations today are in furtherance of these three purposes i foreign affairs american freedom is threatened so long as the world communist conspiracy exists in its present scope power and hostility more closely than ever before american freedom is interlocked with the freedom of other people in the unity of the free world lies our best chance to reduce the communist threat without war in the task of maintaining this unity and strengthening all its parts the greatest responsibility falls naturally on those who like ourselves retain the most freedom and strength we shall therefore continue to advance the because of freedom on foreign fronts in the far east we retain our vital interest in korea we have negotiated with the republic of korea a mutual security pact which develops our security system for the pacific and which i shall promptly submit to the senate for its consent to ratification we are prepared to meet any renewal of armed aggression in korea we shall maintain indefinitely our bases in okinawa i shall ask the congress to authorize continued material assistance to hasten the successful conclusion of the struggle in this assistance will also bring closer the day when the associated states may enjoy the independence already assured by france we shall also continue military and economic aid to the nationalist government of china in south asia profound changes are taking place in free nations which are demonstrating their ability to progress through democratic methods they provide an inspiring contrast to the dictatorial methods and backward course of events in communist china in these continuing efforts the free peoples of south asia can be assured of the support of the united states in the middle east where tensions and serious problems exist we will show sympathetic and impartial friendship in western europe our policy rests firmly on the north atlantic treaty it will remain so based as far ahead as we can see within its organization the building of a united european community including france and germany is vital to a free and europe this will be promoted by the european defense community which offers assurance of european security with the coming of unity to western europe the assistance this nation can render for the security of europe and the free world will be multiplied in effectiveness in the western hemisphere we shall continue to develop harmonious and mutually beneficial cooperation with our neighbors indeed solid friendship with all our american neighbors is a cornerstone of our entire policy in the world as a whole the united nations admittedly still in a state of evolution means much to the united states it has given uniquely valuable services in many places where violence threatened it is the only real world forum where we have the opportunity for international presentation and rebuttal it is a place where the nations of the world can if they have the will take collective action for peace and justice it is a place where the guilt can be squarely assigned to those who fail to take all necessary steps to keep the peace the united nations deserves our continued firm support foreign assistance and trade in the practical application of our foreign policy we enter the field of foreign assistance and trade military assistance must be continued technical assistance must be maintained economic assistance can be reduced however our economic programs in korea and in a few other critical places of the world are especially important and i shall ask congress to continue them in the next fiscal year the forthcoming budget message will propose maintenance of the presidential power of transferability of all assistance funds and will ask authority to merge these funds with the regular defense funds it will also propose that the secretary of defense have primary responsibility for the administration of foreign military assistance in accordance with the policy guidance of the secretary of state the fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved by continuing to surpass her prewar levels of economic activity western europe gains thus our relationship enters a new phase which can bring results beneficial to our taxpayers and our allies alike if still another step is taken this step is the creation of a healthier and freer system of trade and payments within the free world a system in which our allies can earn their own way and our own economy can continue to flourish the free world can no longer afford the kinds of arbitrary restraints on trade that have continued ever since the war on this problem i shall submit to the congress detailed recommendations after our joint commission on foreign economic policy has made its report atomic energy proposal as we maintain our military strength during the coming year and draw closer the bonds with our allies we shall be in an improved position to discuss outstanding issues with the soviet union indeed we shall be glad to do so whenever there is a reasonable prospect of constructive results in this spirit the atomic energy proposals of the united states were recently presented to the united nations general assembly a truly constructive soviet reaction will make possible a new start toward an era of peace and away from the fatal road toward atomic war defense since our hope is peace we owe ourselves and the world a candid explanation of the military measures we are taking to make that peace secure as we enter this new year our military power continues to grow this power is for our own defense and to deter aggression we shall not be aggressors but we and our allies have and will maintain a massive capability to strike back here are some of the considerations in our defense planning first while determined to use atomic power to serve the usages of peace we take into full account our great and growing number of nuclear weapons and the most effective means of using them against an aggressor if they are needed to preserve our freedom our defense will be stronger if under appropriate security safeguards we share with our allies certain knowledge of the tactical use of our nuclear weapons i urge the congress to provide the needed authority second the usefulness of these new weapons creates new relationships between men and materials these new relationships permit economies in the use of men as we build forces suited to our situation in the world today as will be seen from the budget message on january 21 the airpower of our navy and air force is receiving heavy emphasis third our armed forces must regain maximum mobility of action our strategic reserves must be centrally placed and readily deployable to meet sudden aggression against ourselves and our allies fourth our defense must rest on trained manpower and its most economical and mobile use a professional corps is the heart of any security organization it is necessarily the teacher and leader of those who serve temporarily in the discharge of the obligation to help defend the republic pay alone will not retain in the career service of our armed forces the necessary numbers of personnel i strongly urge therefore a more generous use of other benefits important to service morale among these are more adequate living quarters and family housing units and medical care for dependents studies of military manpower have just been completed by the national security training commission and a committee appointed by the director of the office of defense mobilization evident weaknesses exist in the state of readiness and organization of our reserve forces measures to correct these weaknesses will be later submitted to the congress fifth the ability to convert swiftly from partial to mobilization is imperative to our security for the first time mobilization officials know what the requirements are for major items needed for military uses these data now being related to civilian requirements and our supply potential will show us the gaps in our mobilization base thus we shall have more realistic and stockpiling goals we shall speed their attainment this nation is at last to have an mobilization base the foundation of a sound defense program another part of this foundation is of course our continental transport system some of our vital heavy materials come increasingly from canada indeed our relations with canada happily always close involve more and more the unbreakable ties of strategic interdependence both nations now need the lawrence seaway for security as well as for economic reasons i urge the congress promptly to approve our participation in its construction sixth military and measures for continental defense must be and are being strengthened in the current fiscal year we are allocating to these purposes an increasing portion of our effort and in the next fiscal year we shall spend nearly a billion dollars more for them than in 1953 an indispensable part of our continental security is our civil defense effort this will succeed only as we have the complete cooperation of state governors mayors and voluntary citizen groups with their help we can advance a cooperative program which if an attack should come would save many lives and lessen destruction the defense program recommended in the 1955 budget is consistent with all of the considerations which i have just discussed it is based on a new military program unanimously recommended by the joint chiefs of staff and approved by me following consideration by the national security council this new program will make and keep america strong in an age of peril nothing should bar its attainment the international and defense policies which i have outlined will enable us to negotiate from a position of strength as we hold our resolute course toward a peaceful world we now turn to matters which are normally characterized as domestic well realizing that what we do abroad affects every problem at home from the amount of taxes to our very state of mind internal security under the standards established for the new employee security program more than employees have been separated from the federal government our national security demands that the investigation of new employees and the evaluation of derogatory information respecting present employees be expedited and concluded at the earliest possible date i shall recommend that the congress provide additional funds where necessary to speed these important procedures from the special employment standards of the federal government i turn now to a matter relating to american citizenship the subversive character of the communist party in the united states has been clearly demonstrated in many ways including court proceedings we should recognize by law a fact that is plain to all thoughtful we are dealing here with actions akin to treason that when a citizen knowingly participates in the communist conspiracy he no longer holds allegiance to the united states i recommend that congress enact legislation to provide that a citizen of the united states who is convicted in the courts of hereafter conspiring to advocate the overthrow of this government by force or violence be treated as having by such act renounced his allegiance to the united states and forfeited his united states citizenship in addition the attorney general will soon appear before your committees to present his recommendations for needed additional legal weapons with which to combat subversion in our country and to deal with the question of claimed immunity ii strong economy i turn now to the second great purpose of our government along with the protection of freedom the maintenance of a strong and growing economy the american economy is one of the wonders of the world it undergirds our international position our military security and the standard of living of every citizen this administration is determined to keep our economy strong and to keep it growing at this moment we are in transition from a wartime to a peacetime economy i am confident that we can complete this transition without serious interruption in our economic growth but we shall not leave this vital matter to chance economic preparedness is fully as important to the nation as military preparedness subsequent special messages and the economic report on january 28 will set forth plans of the administration and its recommendations for congressional action these will include flexible credit and debt management policies tax measures to stimulate consumer and business spending suitable lending guaranteeing insuring and activities strengthened and unemployment insurance measures improved agricultural programs plans laid well in advance enlarged opportunities for international trade and investment this mere enumeration of these subjects implies the vast amount of study coordination and planning to say nothing of authorizing legislation that altogether make our economic preparedness complete if new conditions arise that require additional administrative or legislative action the administration will still be ready a government always ready as this is to take and vigorous action and a business community willing as ours is to plan boldly and with confidence can between them develop a climate assuring steady economic growth the budget i shall submit to the congress on january 21 the first budget prepared by this administration for the period july 1 1954 through june 1955 this budget is adequate to the current needs of the government it recognizes that a federal budget should be a stabilizing factor in the economy its tax and expenditure programs will foster individual initiative and economic growth pending the transmittal of my budget message i shall mention here only a few points about our budgetary situation first one of our initial acts was to revise with the cooperation of the congress the budget prepared before this administration took office requests for new appropriations were greatly reduced in addition the spending level provided in that budget for the current fiscal year has been reduced by about in the next fiscal year we estimate a further reduction in expenditures of more than this will reduce the spending level over the two fiscal years by more than we are also reducing further our requests for new appropriations second despite the substantial loss of revenue in the coming fiscal year resulting from tax reductions now in effect and tax adjustments which i shall propose our reduced spending will move the new budget closer to a balance third by keeping new appropriation requests below estimated revenues we continue to reduce the tremendous accumulation of unfinanced obligations incurred by the government under past appropriations fourth until those claims on our government revenues are further reduced the growth in the public debt can not be entirely stopped because of this because the government bills have to be paid every month while the tax money to pay them comes in with great unevenness within the fiscal year and because of the need for flexibility to manage this enormous debt i find it necessary to renew my request for an increase in the statutory debt limit taxes the new budget provides for a lower level of taxation than has prevailed in preceding years six days ago individual income taxes were reduced and the excess profits tax expired these tax reductions are justified only because of the substantial reductions we already have made and are making in governmental expenditures as additional reductions in expenditures are brought gradually but surely into sight further reductions in taxes can and will be made when budget savings and sound governmental financing are assured tax burdens should be reduced so that taxpayers may spend their own money in their own way while we are moving toward lower levels of taxation we must thoroughly revise our whole tax system the groundwork for this revision has already been laid by the committee on ways and means of the house of representatives in close consultation with the department of the treasury we should now remove the more glaring tax inequities particularly on small taxpayers reduce restraints on the growth of small business and make other changes that will encourage initiative enterprise and production recommendations toward these ends will be contained in my budget message without attempting to summarize these manifold reforms i can here illustrate their tendency for example we propose more liberal tax treatment for dependent children who work for widows or widowers with dependent children and for medical expenses for the business that wants to expand or modernize its plant we propose liberalized tax treatment of depreciation research and development expenses and retained earnings because of the present need for revenue the corporation income tax should be kept at the current rate of 52 for another year and the excise taxes scheduled to be reduced on april first including those on liquor tobacco gasoline and automobiles should be continued at present rates immediate extension of the renegotiation act of 1951 is also needed to eliminate excessive profits and to prevent waste of public funds in the purchase of defense materials agriculture the well being of our 160 million people demands a stable and prosperous agriculture conversely every farmer knows he can not prosper unless all america prospers as we seek to promote increases in our standard of living we must be sure that the farmer fairly shares in that increase therefore a farm program promoting stability and prosperity in all elements of our agriculture is urgently needed agricultural laws now in effect successfully accomplished their wartime purpose of encouraging maximum production of many crops today production of these crops at such levels far exceeds present demand yet the laws encouraging such production are still in effect the storage facilities of the commodity credit corporation bulge with surplus stocks of dairy products wheat cotton corn and certain vegetable oils and the corporation presently authorized borrowing authority is nearly exhausted some products priced out of domestic markets and others priced out of world markets have piled up in government hands in a world in which millions of people are hungry destruction of food would of course be unconscionable yet surplus stocks continue to threaten the market and in spite of the acreage controls authorized by present law surpluses will continue to accumulate we confront two alternatives the first is to impose still greater acreage reductions for some crops and apply rigid federal controls over the use of the diverted acres this will regiment the production of every basic agricultural crop it will place every producer of those crops under the domination and control of the federal government in washington this alternative is contrary to the fundamental interests not only of the farmer but of the nation as a whole nor is it a real solution to the problem facing us the second alternative is to permit the market price for these agricultural products gradually to have a greater influence on the planning of production by farmers while continuing the assistance of the government this is the sound approach to make it effective surpluses existing when the new program begins must be insulated from the normal channels of trade for special uses these uses would include school lunch programs disaster relief emergency assistance to foreign friends and of particular importance the stockpiling of reserves for a national emergency building on the agricultural laws of 1948 and 1949 we should establish a price support program with enough flexibility to attract the production of needed supplies of essential commodities and to stimulate the consumption of those commodities that are flooding american markets transition to modernized parity must be accomplished gradually in no case should there be an abrupt downward change in the dollar level or in the percentage level of price supports next monday i shall transmit to the congress my detailed recommendations embodying this approach they have been developed through the cooperation of innumerable individuals vitally interested in agriculture my special message on monday will briefly describe the consultative and advisory processes to which this whole program has been subjected during the past ten months i have chosen this farm program because it will build markets protect the consumers food supply and move food into consumption instead of into storage it is a program that will remove the threat to the farmer of these overhanging surpluses a program also that will stimulate production when a commodity is scarce and encourage consumption when nature is bountiful moreover it will promote the individual freedom responsibility and initiative which distinguish american agriculture and by helping our agriculture achieve full parity in the market it promises our farmers a higher and steadier financial return over the years than any alternative plan conservation part of our nation precious heritage is its natural resources it is the common responsibility of federal state and local governments to improve and develop them always working in the closest harmony and partnership all federal conservation and resource development projects are being reappraised sound projects now under way will be continued new projects in which the federal government has a part must be economically sound with local sharing of cost wherever appropriate and feasible in the next fiscal year work will be started on projects that meet these standards the federal government will continue to construct and operate economically sound flood control power irrigation and water supply projects wherever these projects are beyond the capacity of local initiative public or private and consistent with the needs of the whole nation our conservation program will also take into account the important role played by farmers in protecting our soil resources i recommend enactment of legislation to strengthen agricultural conservation and upstream flood prevention work and to achieve a better balance with major flood control structures in the areas recommendations will be made from time to time for the adoption of a uniform and consistent water resources policy a revised public lands policy and a sound program for safeguarding the domestic production of critical and strategic metals and minerals in addition we shall continue to protect and improve our national forests parks monuments and other natural and historic sites as well as our fishery and wildlife resources i hope that pending legislation to improve the conservation and management of grazing lands in national forests will soon be approved by the congress national highways to protect the vital interest of every citizen in a safe and adequate highway system the federal government is continuing its central role in the federal aid highway program so that maximum progress can be made to overcome present inadequacies in the interstate highway system we must continue the federal gasoline tax at two cents per gallon this will require cancellation of the decrease which otherwise will become effective april 1st and will maintain revenues so that an expanded highway program can be undertaken when the commission on intergovernmental relations completes its study of the present system of financing highway construction i shall promptly submit it for consideration by the congress and the governors of the states post office it is apparent that the substantial savings already made and to be made by the post office department can not eliminate the postal deficit i recommend therefore that the congress approve the bill now pending in the house of representatives providing for the adjustment of certain postal rates to handle the long term aspects of this i also recommend that the congress create a permanent commission to establish fair and reasonable postal rates from time to time in the future iii human problems along with the protection of freedom and maintenance of a strong and growing economy this administration recognizes a third great purpose of government concern for the human problems of our citizens in a modern industrial society banishment of destitution and cushioning the shock of personal disaster on the individual are proper concerns of all levels of government including the federal government this is especially true where remedy and prevention alike are beyond the individual capacity labor and welfare of the many problems in this area those i shall first discuss are of particular concern to the members of our great labor force who with their heads hearts and hands produce so much of the wealth of our country protection against the hazards of temporary unemployment should be extended to some 6½ millions of workers including civilian federal workers who now lack this safeguard moreover the secretary of labor is making available to the states studies and recommendations in the fields of weekly benefits periods of protection and extension of coverage the economic report will consider the related matter of minimum wages and their coverage the labor management relations act of 3947 is basically a sound law however six years of experience have revealed that in some respects it can be improved on january 11 i shall forward to the congress suggestions for changes designed to reinforce the basic objectives of the act our basic social security program the and survivors insurance system to which individuals contribute during their productive years and receive benefits based on previous earnings is designed to shield them from destitution last year i recommended extension of the social insurance system to include more than additional persons i ask that this extension soon be accomplished this and other major improvements in the insurance system will bring substantial benefit increases and broaden the membership of the insurance system thus diminishing the need for federal for such purposes a new formula will therefore be proposed permitting progressive reduction in such grants as the need for them declines federal welfare programs now based on widely varying formulas should be simplified concrete proposals on fourteen of them will be suggested to the appropriate committees the program for rehabilitation of the disabled especially needs strengthening through special vocational training this program presently returns each year some handicapped individuals to productive work far more disabled people can be saved each year from idleness and dependence if this program is gradually increased my more detailed recommendations on this and the other social insurance problems i have mentioned will be sent to the congress on january 14th health i am flatly opposed to the socialization of medicine the great need for hospital and medical services can best be met by the initiative of private plans but it is unfortunately a fact that medical costs are rising and already impose severe hardships on many families the federal government can do many helpful things and still carefully avoid the socialization of medicine the federal government should encourage medical research in its battle with such mortal diseases as cancer and heart ailments and should continue to help the states in their health and rehabilitation programs the present hospital survey and construction act should be broadened in order to assist in the development of adequate facilities for the chronically ill and to encourage the construction of diagnostic centers rehabilitation facilities and nursing homes the war on disease also needs a better working relationship between government and private initiative private and hospital and medical insurance plans are already in the field soundly based on the experience and initiative of the people in their various communities a limited government reinsurance service would permit the private and insurance companies to offer broader protection to more of the many families which want and should have it on january 18 i shall forward to the congress a special message presenting this administration health program in its detail education youth our greatest resource is being seriously neglected in a vital respect the nation as a whole is not preparing teachers or building schools fast enough to keep up with the increase in our population the preparation of teachers as indeed the control and direction of public education policy is a state and local responsibility however the federal government should stand ready to assist states which demonstrably can not provide sufficient school buildings in order to appraise the needs i hope that this year a conference on education will be held in each state culminating in a national conference from these conferences on education every level of government from the federal government to each local school board should gain the information with which to attack this serious problem housing the details of a program to enlarge and improve the opportunities for our people to acquire good homes will be presented to the congress by special message on january this program will include modernization of the home mortgage insurance program of the federal government redirection of the present system of loans and to cities for slum clearance and redevelopment extension of the advantages of insured lending to private credit engaged in this task of rehabilitating obsolete neighborhoods insurance of mortgage loans with small down payment for families and until alternative programs prove more effective continuation of the public housing program adopted in the housing act of 1949 if the individual the community the state and federal governments will alike apply themselves every american family can have a decent home veterans administration the internal reorganization of the veterans administration is proceeding with my full approval when completed it will afford a single agency whose services including medical facilities will be better adapted to the needs of those veterans to whom this nation owes so much suffrage my few remaining recommendations all relate to a basic right of our citizens that of being represented in the decisions of the government i hope that the states will cooperate with the congress in adopting uniform standards in their voting laws that will make it possible for our citizens in the armed forces overseas to vote in the district of columbia the time is long overdue for granting national suffrage to its citizens and also applying the principle of local to the nation capital i urge the congress to move promptly in this direction and also to revise district revenue measures to provide needed public works improvements the people of hawaii are ready for statehood i renew my request for this legislation in order that hawaii may elect its state officials and its representatives in washington along with the rest of the country this fall for years our citizens between the ages of 18 and 21 have in time of peril been summoned to fight for america they should participate in the political process that produces this fateful summons i urge congress to propose to the states a constitutional amendment permitting citizens to vote when they reach the age of 18 conclusion i want to add one final word about the general purport of these many recommendations our government powers are wisely limited by the constitution but quite apart from those limitations there are things which no government can do or should try to do a government can strive as ours is striving to maintain an economic system whose doors are open to enterprise and ambition those personal qualities on which economic growth largely depends but enterprise and ambition are qualities which no government can supply fortunately no american government need concern itself on this score our people have these qualities in good measure a government can sincerely strive for peace as ours is striving and ask its people to make sacrifices for the sake of peace but no government can place peace in the hearts of foreign rulers it is our duty then to ourselves and to freedom itself to remain strong in all those ways spiritual economic military that will give us maximum safety against the possibility of aggressive action by others no government can inoculate its people against the fatal materialism that plagues our age happily our people though blessed with more material goods than any people in history have always reserved their first allegiance to the kingdom of the spirit which is the true source of that freedom we value above all material things but a government can try as ours tries to sense the deepest aspirations of the people and to express them in political action at home and abroad so long as action and aspiration humbly and earnestly seek favor in the sight of the almighty there is no end to america forward road there is no obstacle on it she will not surmount in her march toward a lasting peace in a free and prosperous world dwight eisenhower
president speaker members congress high honor present congress views state union recommend measures advance security prosperity american people branches government venture say great parties support general objective recommendations make today objective building stronger america nation whose every citizen good reason bold hope effort rewarded prosperity shared freedom expands peace secure mean stronger america toward objective real momentum developed administration first year office mean continue momentum increase mean build better future nation much may thankful happened past year first deeply grateful sons longer die distant mountains korea although still called homes military service longer called field battle nation completed prosperous year history damaging effect inflation wages pensions salaries savings us brought control taxes begun go cost government reduced work proceeds fewer employees thus discouraging trend modern governments toward limitless expansion case reversed cost armaments becomes less oppressive near defense goals yet militarily stronger every day year creation new cabinet department health education welfare symbolized government permanent concern human problems citizens segregation armed forces federal activities way also made progress toward elimination district columbia steps continuing effort eliminate difficulty developments beyond shores equally encouraging communist aggression halted korea continues meet vigorous resistance france associated states assisted timely aid country west germany iran areas world heartening political victories forces stability freedom slowly surely free world gathers strength meanwhile behind iron curtain signs tyranny trouble reminders structure brittle surface hard fact great strategic change world past year precious intangible initiative becoming policy limited mere reaction crises provoked others free develop along lines choice abroad also home major theme american policy coming year let joint determination hold new initiative use shall use initiative promote three broad purposes first protect freedom people second maintain strong growing economy third concern human problems individual citizen active concern purposes sure forward road better stronger america recommendations today furtherance three purposes foreign affairs american freedom threatened long world communist conspiracy exists present scope power hostility closely ever american freedom interlocked freedom people unity free world lies best chance reduce communist threat without war task maintaining unity strengthening parts greatest responsibility falls naturally like retain freedom strength shall therefore continue advance freedom foreign fronts far east retain vital interest korea negotiated republic korea mutual security pact develops security system pacific shall promptly submit senate consent ratification prepared meet renewal armed aggression korea shall maintain indefinitely bases okinawa shall ask congress authorize continued material assistance hasten successful conclusion struggle assistance also bring closer day associated states may enjoy independence already assured france shall also continue military economic aid nationalist government china south asia profound changes taking place free nations demonstrating ability progress democratic methods provide inspiring contrast dictatorial methods backward course events communist china continuing efforts free peoples south asia assured support united states middle east tensions serious problems exist show sympathetic impartial friendship western europe policy rests firmly north atlantic treaty remain based far ahead see within organization building united european community including france germany vital free europe promoted european defense community offers assurance european security coming unity western europe assistance nation render security europe free world multiplied effectiveness western hemisphere shall continue develop harmonious mutually beneficial cooperation neighbors indeed solid friendship american neighbors cornerstone entire policy world whole united nations admittedly still state evolution means much united states given uniquely valuable services many places violence threatened real world forum opportunity international presentation rebuttal place nations world take collective action peace justice place guilt squarely assigned fail take necessary steps keep peace united nations deserves continued firm support foreign assistance trade practical application foreign policy enter field foreign assistance trade military assistance must continued technical assistance must maintained economic assistance reduced however economic programs korea critical places world especially important shall ask congress continue next fiscal year forthcoming budget message propose maintenance presidential power transferability assistance funds ask authority merge funds regular defense funds also propose secretary defense primary responsibility administration foreign military assistance accordance policy guidance secretary state fact reduce foreign economic assistance many areas gratifying evidence objectives achieved continuing surpass prewar levels economic activity western europe gains thus relationship enters new phase bring results beneficial taxpayers allies alike still another step taken step creation healthier freer system trade payments within free world system allies earn way economy continue flourish free world longer afford kinds arbitrary restraints trade continued ever since war problem shall submit congress detailed recommendations joint commission foreign economic policy made report atomic energy proposal maintain military strength coming year draw closer bonds allies shall improved position discuss outstanding issues soviet union indeed shall glad whenever reasonable prospect constructive results spirit atomic energy proposals united states recently presented united nations general assembly truly constructive soviet reaction make possible new start toward era peace away fatal road toward atomic war defense since hope peace owe world candid explanation military measures taking make peace secure enter new year military power continues grow power defense deter aggression shall aggressors allies maintain massive capability strike back considerations defense planning first determined use atomic power serve usages peace take full account great growing number nuclear weapons effective means using aggressor needed preserve freedom defense stronger appropriate security safeguards share allies certain knowledge tactical use nuclear weapons urge congress provide needed authority second usefulness new weapons creates new relationships men materials new relationships permit economies use men build forces suited situation world today seen budget message january 21 airpower navy air force receiving heavy emphasis third armed forces must regain maximum mobility action strategic reserves must centrally placed readily deployable meet sudden aggression allies fourth defense must rest trained manpower economical mobile use professional corps heart security organization necessarily teacher leader serve temporarily discharge obligation help defend republic pay alone retain career service armed forces necessary numbers personnel strongly urge therefore generous use benefits important service morale among adequate living quarters family housing units medical care dependents studies military manpower completed national security training commission committee appointed director office defense mobilization evident weaknesses exist state readiness organization reserve forces measures correct weaknesses later submitted congress fifth ability convert swiftly partial mobilization imperative security first time mobilization officials know requirements major items needed military uses data related civilian requirements supply potential show us gaps mobilization base thus shall realistic stockpiling goals shall speed attainment nation last mobilization base foundation sound defense program another part foundation course continental transport system vital heavy materials come increasingly canada indeed relations canada happily always close involve unbreakable ties strategic interdependence nations need lawrence seaway security well economic reasons urge congress promptly approve participation construction sixth military measures continental defense must strengthened current fiscal year allocating purposes increasing portion effort next fiscal year shall spend nearly billion dollars 1953 indispensable part continental security civil defense effort succeed complete cooperation state governors mayors voluntary citizen groups help advance cooperative program attack come would save many lives lessen destruction defense program recommended 1955 budget consistent considerations discussed based new military program unanimously recommended joint chiefs staff approved following consideration national security council new program make keep america strong age peril nothing bar attainment international defense policies outlined enable us negotiate position strength hold resolute course toward peaceful world turn matters normally characterized domestic well realizing abroad affects every problem home amount taxes state mind internal security standards established new employee security program employees separated federal government national security demands investigation new employees evaluation derogatory information respecting present employees expedited concluded earliest possible date shall recommend congress provide additional funds necessary speed important procedures special employment standards federal government turn matter relating american citizenship subversive character communist party united states clearly demonstrated many ways including court proceedings recognize law fact plain thoughtful dealing actions akin treason citizen knowingly participates communist conspiracy longer holds allegiance united states recommend congress enact legislation provide citizen united states convicted courts hereafter conspiring advocate overthrow government force violence treated act renounced allegiance united states forfeited united states citizenship addition attorney general soon appear committees present recommendations needed additional legal weapons combat subversion country deal question claimed immunity ii strong economy turn second great purpose government along protection freedom maintenance strong growing economy american economy one wonders world undergirds international position military security standard living every citizen administration determined keep economy strong keep growing moment transition wartime peacetime economy confident complete transition without serious interruption economic growth shall leave vital matter chance economic preparedness fully important nation military preparedness subsequent special messages economic report january 28 set forth plans administration recommendations congressional action include flexible credit debt management policies tax measures stimulate consumer business spending suitable lending guaranteeing insuring activities strengthened unemployment insurance measures improved agricultural programs plans laid well advance enlarged opportunities international trade investment mere enumeration subjects implies vast amount study coordination planning say nothing authorizing legislation altogether make economic preparedness complete new conditions arise require additional administrative legislative action administration still ready government always ready take vigorous action business community willing plan boldly confidence develop climate assuring steady economic growth budget shall submit congress january 21 first budget prepared administration period july 1 1954 june 1955 budget adequate current needs government recognizes federal budget stabilizing factor economy tax expenditure programs foster individual initiative economic growth pending transmittal budget message shall mention points budgetary situation first one initial acts revise cooperation congress budget prepared administration took office requests new appropriations greatly reduced addition spending level provided budget current fiscal year reduced next fiscal year estimate reduction expenditures reduce spending level two fiscal years also reducing requests new appropriations second despite substantial loss revenue coming fiscal year resulting tax reductions effect tax adjustments shall propose reduced spending move new budget closer balance third keeping new appropriation requests estimated revenues continue reduce tremendous accumulation unfinanced obligations incurred government past appropriations fourth claims government revenues reduced growth public debt entirely stopped government bills paid every month tax money pay comes great unevenness within fiscal year need flexibility manage enormous debt find necessary renew request increase statutory debt limit taxes new budget provides lower level taxation prevailed preceding years six days ago individual income taxes reduced excess profits tax expired tax reductions justified substantial reductions already made making governmental expenditures additional reductions expenditures brought gradually surely sight reductions taxes made budget savings sound governmental financing assured tax burdens reduced taxpayers may spend money way moving toward lower levels taxation must thoroughly revise whole tax system groundwork revision already laid committee ways means house representatives close consultation department treasury remove glaring tax inequities particularly small taxpayers reduce restraints growth small business make changes encourage initiative enterprise production recommendations toward ends contained budget message without attempting summarize manifold reforms illustrate tendency example propose liberal tax treatment dependent children work widows widowers dependent children medical expenses business wants expand modernize plant propose liberalized tax treatment depreciation research development expenses retained earnings present need revenue corporation income tax kept current rate 52 another year excise taxes scheduled reduced april first including liquor tobacco gasoline automobiles continued present rates immediate extension renegotiation act 1951 also needed eliminate excessive profits prevent waste public funds purchase defense materials agriculture well 160 million people demands stable prosperous agriculture conversely every farmer knows prosper unless america prospers seek promote increases standard living must sure farmer fairly shares increase therefore farm program promoting stability prosperity elements agriculture urgently needed agricultural laws effect successfully accomplished wartime purpose encouraging maximum production many crops today production crops levels far exceeds present demand yet laws encouraging production still effect storage facilities commodity credit corporation bulge surplus stocks dairy products wheat cotton corn certain vegetable oils corporation presently authorized borrowing authority nearly exhausted products priced domestic markets others priced world markets piled government hands world millions people hungry destruction food would course unconscionable yet surplus stocks continue threaten market spite acreage controls authorized present law surpluses continue accumulate confront two alternatives first impose still greater acreage reductions crops apply rigid federal controls use diverted acres regiment production every basic agricultural crop place every producer crops domination control federal government washington alternative contrary fundamental interests farmer nation whole real solution problem facing us second alternative permit market price agricultural products gradually greater influence planning production farmers continuing assistance government sound approach make effective surpluses existing new program begins must insulated normal channels trade special uses uses would include school lunch programs disaster relief emergency assistance foreign friends particular importance stockpiling reserves national emergency building agricultural laws 1948 1949 establish price support program enough flexibility attract production needed supplies essential commodities stimulate consumption commodities flooding american markets transition modernized parity must accomplished gradually case abrupt downward change dollar level percentage level price supports next monday shall transmit congress detailed recommendations embodying approach developed cooperation innumerable individuals vitally interested agriculture special message monday briefly describe consultative advisory processes whole program subjected past ten months chosen farm program build markets protect consumers food supply move food consumption instead storage program remove threat farmer overhanging surpluses program also stimulate production commodity scarce encourage consumption nature bountiful moreover promote individual freedom responsibility initiative distinguish american agriculture helping agriculture achieve full parity market promises farmers higher steadier financial return years alternative plan conservation part nation precious heritage natural resources common responsibility federal state local governments improve develop always working closest harmony partnership federal conservation resource development projects reappraised sound projects way continued new projects federal government part must economically sound local sharing cost wherever appropriate feasible next fiscal year work started projects meet standards federal government continue construct operate economically sound flood control power irrigation water supply projects wherever projects beyond capacity local initiative public private consistent needs whole nation conservation program also take account important role played farmers protecting soil resources recommend enactment legislation strengthen agricultural conservation upstream flood prevention work achieve better balance major flood control structures areas recommendations made time time adoption uniform consistent water resources policy revised public lands policy sound program safeguarding domestic production critical strategic metals minerals addition shall continue protect improve national forests parks monuments natural historic sites well fishery wildlife resources hope pending legislation improve conservation management grazing lands national forests soon approved congress national highways protect vital interest every citizen safe adequate highway system federal government continuing central role federal aid highway program maximum progress made overcome present inadequacies interstate highway system must continue federal gasoline tax two cents per gallon require cancellation decrease otherwise become effective april 1st maintain revenues expanded highway program undertaken commission intergovernmental relations completes study present system financing highway construction shall promptly submit consideration congress governors states post office apparent substantial savings already made made post office department eliminate postal deficit recommend therefore congress approve bill pending house representatives providing adjustment certain postal rates handle long term aspects also recommend congress create permanent commission establish fair reasonable postal rates time time future iii human problems along protection freedom maintenance strong growing economy administration recognizes third great purpose government concern human problems citizens modern industrial society banishment destitution cushioning shock personal disaster individual proper concerns levels government including federal government especially true remedy prevention alike beyond individual capacity labor welfare many problems area shall first discuss particular concern members great labor force heads hearts hands produce much wealth country protection hazards temporary unemployment extended 6½ millions workers including civilian federal workers lack safeguard moreover secretary labor making available states studies recommendations fields weekly benefits periods protection extension coverage economic report consider related matter minimum wages coverage labor management relations act 3947 basically sound law however six years experience revealed respects improved january 11 shall forward congress suggestions changes designed reinforce basic objectives act basic social security program survivors insurance system individuals contribute productive years receive benefits based previous earnings designed shield destitution last year recommended extension social insurance system include additional persons ask extension soon accomplished major improvements insurance system bring substantial benefit increases broaden membership insurance system thus diminishing need federal purposes new formula therefore proposed permitting progressive reduction grants need declines federal welfare programs based widely varying formulas simplified concrete proposals fourteen suggested appropriate committees program rehabilitation disabled especially needs strengthening special vocational training program presently returns year handicapped individuals productive work far disabled people saved year idleness dependence program gradually increased detailed recommendations social insurance problems mentioned sent congress january 14th health flatly opposed socialization medicine great need hospital medical services best met initiative private plans unfortunately fact medical costs rising already impose severe hardships many families federal government many helpful things still carefully avoid socialization medicine federal government encourage medical research battle mortal diseases cancer heart ailments continue help states health rehabilitation programs present hospital survey construction act broadened order assist development adequate facilities chronically ill encourage construction diagnostic centers rehabilitation facilities nursing homes war disease also needs better working relationship government private initiative private hospital medical insurance plans already field soundly based experience initiative people various communities limited government reinsurance service would permit private insurance companies offer broader protection many families want january 18 shall forward congress special message presenting administration health program detail education youth greatest resource seriously neglected vital respect nation whole preparing teachers building schools fast enough keep increase population preparation teachers indeed control direction public education policy state local responsibility however federal government stand ready assist states demonstrably provide sufficient school buildings order appraise needs hope year conference education held state culminating national conference conferences education every level government federal government local school board gain information attack serious problem housing details program enlarge improve opportunities people acquire good homes presented congress special message january program include modernization home mortgage insurance program federal government redirection present system loans cities slum clearance redevelopment extension advantages insured lending private credit engaged task rehabilitating obsolete neighborhoods insurance mortgage loans small payment families alternative programs prove effective continuation public housing program adopted housing act 1949 individual community state federal governments alike apply every american family decent home veterans administration internal reorganization veterans administration proceeding full approval completed afford single agency whose services including medical facilities better adapted needs veterans nation owes much suffrage remaining recommendations relate basic right citizens represented decisions government hope states cooperate congress adopting uniform standards voting laws make possible citizens armed forces overseas vote district columbia time long overdue granting national suffrage citizens also applying principle local nation capital urge congress move promptly direction also revise district revenue measures provide needed public works improvements people hawaii ready statehood renew request legislation order hawaii may elect state officials representatives washington along rest country fall years citizens ages 18 21 time peril summoned fight america participate political process produces fateful summons urge congress propose states constitutional amendment permitting citizens vote reach age 18 conclusion want add one final word general purport many recommendations government powers wisely limited constitution quite apart limitations things government try government strive striving maintain economic system whose doors open enterprise ambition personal qualities economic growth largely depends enterprise ambition qualities government supply fortunately american government need concern score people qualities good measure government sincerely strive peace striving ask people make sacrifices sake peace government place peace hearts foreign rulers duty freedom remain strong ways spiritual economic military give us maximum safety possibility aggressive action others government inoculate people fatal materialism plagues age happily people though blessed material goods people history always reserved first allegiance kingdom spirit true source freedom value material things government try tries sense deepest aspirations people express political action home abroad long action aspiration humbly earnestly seek favor sight almighty end america forward road obstacle surmount march toward lasting peace free prosperous world dwight eisenhower
president speaker member congress high honor present congress view state union recommend measure advance security prosperity american people branch government venture say great party support general objective recommendation make today objective building strong america nation whose every citizen good reason bold hope effort reward prosperity share freedom expand peace secure mean strong america toward objective real momentum develop administration first year office mean continue momentum increase mean build good future nation much may thankful happen past year first deeply grateful son longer die distant mountain korea although still call home military service longer call field battle nation complete prosperous year history damage effect inflation wage pension salary savings u bring control tax begin go cost government reduce work proceeds few employee thus discourage trend modern government toward limitless expansion case reverse cost armament become less oppressive near defense goal yet militarily strong every day year creation new cabinet department health education welfare symbolized government permanent concern human problem citizen segregation arm force federal activity way also make progress toward elimination district columbia step continue effort eliminate difficulty development beyond shore equally encouraging communist aggression halt korea continue meet vigorous resistance france associate state assist timely aid country west germany iran area world hearten political victory force stability freedom slowly surely free world gather strength meanwhile behind iron curtain sign tyranny trouble reminder structure brittle surface hard fact great strategic change world past year precious intangible initiative become policy limit mere reaction crisis provoke others free develop along line choice abroad also home major theme american policy come year let joint determination hold new initiative use shall use initiative promote three broad purpose first protect freedom people second maintain strong grow economy third concern human problem individual citizen active concern purpose sure forward road well strong america recommendation today furtherance three purpose foreign affair american freedom threaten long world communist conspiracy exist present scope power hostility closely ever american freedom interlock freedom people unity free world lie best chance reduce communist threat without war task maintain unity strengthen part great responsibility fall naturally like retain freedom strength shall therefore continue advance freedom foreign front far east retain vital interest korea negotiate republic korea mutual security pact develop security system pacific shall promptly submit senate consent ratification prepare meet renewal arm aggression korea shall maintain indefinitely base okinawa shall ask congress authorize continue material assistance hasten successful conclusion struggle assistance also bring closer day associate state may enjoy independence already assure france shall also continue military economic aid nationalist government china south asia profound change take place free nation demonstrate ability progress democratic method provide inspire contrast dictatorial method backward course event communist china continue effort free people south asia assured support unite state middle east tension serious problem exist show sympathetic impartial friendship western europe policy rest firmly north atlantic treaty remain base far ahead see within organization building united european community include france germany vital free europe promote european defense community offer assurance european security come unity western europe assistance nation render security europe free world multiply effectiveness western hemisphere shall continue develop harmonious mutually beneficial cooperation neighbor indeed solid friendship american neighbor cornerstone entire policy world whole united nation admittedly still state evolution mean much united state give uniquely valuable service many place violence threaten real world forum opportunity international presentation rebuttal place nation world take collective action peace justice place guilt squarely assign fail take necessary step keep peace united nation deserves continue firm support foreign assistance trade practical application foreign policy enter field foreign assistance trade military assistance must continue technical assistance must maintain economic assistance reduce however economic program korea critical place world especially important shall ask congress continue next fiscal year forthcoming budget message propose maintenance presidential power transferability assistance fund ask authority merge fund regular defense fund also propose secretary defense primary responsibility administration foreign military assistance accordance policy guidance secretary state fact reduce foreign economic assistance many area gratify evidence objective achieve continue surpass prewar level economic activity western europe gain thus relationship enters new phase bring result beneficial taxpayer ally alike still another step take step creation healthy freer system trade payment within free world system ally earn way economy continue flourish free world longer afford kind arbitrary restraint trade continue ever since war problem shall submit congress detailed recommendation joint commission foreign economic policy make report atomic energy proposal maintain military strength come year draw closer bond ally shall improve position discus outstanding issue soviet union indeed shall glad whenever reasonable prospect constructive result spirit atomic energy proposal united state recently present united nation general assembly truly constructive soviet reaction make possible new start toward era peace away fatal road toward atomic war defense since hope peace owe world candid explanation military measure take make peace secure enter new year military power continue grow power defense deter aggression shall aggressors ally maintain massive capability strike back consideration defense planning first determine use atomic power serve usages peace take full account great grow number nuclear weapon effective mean use aggressor need preserve freedom defense strong appropriate security safeguard share ally certain knowledge tactical use nuclear weapon urge congress provide need authority second usefulness new weapon create new relationship men material new relationship permit economy use men build force suit situation world today see budget message january 21 airpower navy air force receive heavy emphasis third armed force must regain maximum mobility action strategic reserve must centrally place readily deployable meet sudden aggression ally fourth defense must rest trained manpower economical mobile use professional corp heart security organization necessarily teacher leader serve temporarily discharge obligation help defend republic pay alone retain career service arm force necessary number personnel strongly urge therefore generous use benefit important service morale among adequate living quarter family housing unit medical care dependent study military manpower complete national security train commission committee appoint director office defense mobilization evident weakness exist state readiness organization reserve force measure correct weakness later submit congress fifth ability convert swiftly partial mobilization imperative security first time mobilization official know requirement major item need military us data related civilian requirement supply potential show u gap mobilization base thus shall realistic stockpiling goal shall speed attainment nation last mobilization base foundation sound defense program another part foundation course continental transport system vital heavy material come increasingly canada indeed relation canada happily always close involve unbreakable tie strategic interdependence nation need lawrence seaway security well economic reason urge congress promptly approve participation construction sixth military measure continental defense must strengthen current fiscal year allocating purpose increase portion effort next fiscal year shall spend nearly billion dollar 1953 indispensable part continental security civil defense effort succeed complete cooperation state governor mayor voluntary citizen group help advance cooperative program attack come would save many life lessen destruction defense program recommend 1955 budget consistent consideration discuss base new military program unanimously recommend joint chiefs staff approve follow consideration national security council new program make keep america strong age peril nothing bar attainment international defense policy outline enable u negotiate position strength hold resolute course toward peaceful world turn matter normally characterize domestic well realize abroad affect every problem home amount tax state mind internal security standard establish new employee security program employee separate federal government national security demand investigation new employee evaluation derogatory information respect present employee expedite conclude early possible date shall recommend congress provide additional fund necessary speed important procedure special employment standard federal government turn matter relate american citizenship subversive character communist party united state clearly demonstrate many way include court proceeding recognize law fact plain thoughtful deal action akin treason citizen knowingly participate communist conspiracy longer hold allegiance united state recommend congress enact legislation provide citizen united state convict court hereafter conspire advocate overthrow government force violence treat act renounce allegiance united state forfeit united state citizenship addition attorney general soon appear committee present recommendation need additional legal weapon combat subversion country deal question claim immunity ii strong economy turn second great purpose government along protection freedom maintenance strong grow economy american economy one wonder world undergirds international position military security standard living every citizen administration determine keep economy strong keep grow moment transition wartime peacetime economy confident complete transition without serious interruption economic growth shall leave vital matter chance economic preparedness fully important nation military preparedness subsequent special message economic report january 28 set forth plan administration recommendation congressional action include flexible credit debt management policy tax measure stimulate consumer business spending suitable lending guarantee insure activity strengthen unemployment insurance measure improve agricultural program plan lay well advance enlarge opportunity international trade investment mere enumeration subject imply vast amount study coordination plan say nothing authorize legislation altogether make economic preparedness complete new condition arise require additional administrative legislative action administration still ready government always ready take vigorous action business community willing plan boldly confidence develop climate assure steady economic growth budget shall submit congress january 21 first budget prepared administration period july 1 1954 june 1955 budget adequate current needs government recognize federal budget stabilize factor economy tax expenditure program foster individual initiative economic growth pending transmittal budget message shall mention point budgetary situation first one initial act revise cooperation congress budget prepared administration take office request new appropriation greatly reduce addition spending level provide budget current fiscal year reduce next fiscal year estimate reduction expenditures reduce spend level two fiscal year also reduce request new appropriation second despite substantial loss revenue come fiscal year result tax reduction effect tax adjustment shall propose reduced spending move new budget closer balance third keep new appropriation request estimate revenue continue reduce tremendous accumulation unfinanced obligation incurred government past appropriation fourth claim government revenue reduce growth public debt entirely stop government bill pay every month tax money pay come great unevenness within fiscal year need flexibility manage enormous debt find necessary renew request increase statutory debt limit tax new budget provide low level taxation prevail precede year six day ago individual income tax reduce excess profit tax expire tax reduction justify substantial reduction already make make governmental expenditure additional reduction expenditure bring gradually surely sight reduction tax make budget saving sound governmental financing assured tax burden reduce taxpayer may spend money way move toward low level taxation must thoroughly revise whole tax system groundwork revision already lay committee way mean house representative close consultation department treasury remove glare tax inequity particularly small taxpayer reduce restraint growth small business make change encourage initiative enterprise production recommendation toward end contain budget message without attempt summarize manifold reform illustrate tendency example propose liberal tax treatment dependent child work widow widower dependent child medical expense business want expand modernize plant propose liberalized tax treatment depreciation research development expense retain earnings present need revenue corporation income tax keep current rate 52 another year excise tax schedule reduce april first include liquor tobacco gasoline automobile continue present rate immediate extension renegotiation act 1951 also need eliminate excessive profit prevent waste public fund purchase defense material agriculture well 160 million people demand stable prosperous agriculture conversely every farmer know prosper unless america prospers seek promote increase standard live must sure farmer fairly share increase therefore farm program promoting stability prosperity elements agriculture urgently need agricultural law effect successfully accomplish wartime purpose encourage maximum production many crop today production crop level far exceed present demand yet law encourage production still effect storage facility commodity credit corporation bulge surplus stock dairy product wheat cotton corn certain vegetable oil corporation presently authorize borrow authority nearly exhaust product price domestic market others price world market piled government hand world million people hungry destruction food would course unconscionable yet surplus stock continue threaten market spite acreage control authorize present law surplus continue accumulate confront two alternative first impose still great acreage reduction crop apply rigid federal control use divert acre regiment production every basic agricultural crop place every producer crop domination control federal government washington alternative contrary fundamental interest farmer nation whole real solution problem face u second alternative permit market price agricultural product gradually great influence planning production farmer continue assistance government sound approach make effective surplus exist new program begin must insulate normal channel trade special us us would include school lunch program disaster relief emergency assistance foreign friend particular importance stockpile reserve national emergency build agricultural law 1948 1949 establish price support program enough flexibility attract production need supply essential commodity stimulate consumption commodity flood american market transition modernize parity must accomplish gradually case abrupt downward change dollar level percentage level price support next monday shall transmit congress detailed recommendation embody approach develop cooperation innumerable individual vitally interested agriculture special message monday briefly describe consultative advisory process whole program subject past ten month choose farm program build market protect consumer food supply move food consumption instead storage program remove threat farmer overhang surplus program also stimulate production commodity scarce encourage consumption nature bountiful moreover promote individual freedom responsibility initiative distinguish american agriculture help agriculture achieve full parity market promise farmer higher steady financial return year alternative plan conservation part nation precious heritage natural resource common responsibility federal state local government improve develop always work close harmony partnership federal conservation resource development project reappraise sound project way continue new project federal government part must economically sound local share cost wherever appropriate feasible next fiscal year work start project meet standard federal government continue construct operate economically sound flood control power irrigation water supply project wherever project beyond capacity local initiative public private consistent need whole nation conservation program also take account important role play farmer protect soil resource recommend enactment legislation strengthen agricultural conservation upstream flood prevention work achieve good balance major flood control structure area recommendation make time time adoption uniform consistent water resource policy revise public land policy sound program safeguarding domestic production critical strategic metal mineral addition shall continue protect improve national forest park monument natural historic site well fishery wildlife resource hope pending legislation improve conservation management graze land national forest soon approve congress national highway protect vital interest every citizen safe adequate highway system federal government continue central role federal aid highway program maximum progress make overcome present inadequacy interstate highway system must continue federal gasoline tax two cent per gallon require cancellation decrease otherwise become effective april 1st maintain revenue expand highway program undertaken commission intergovernmental relation completes study present system finance highway construction shall promptly submit consideration congress governor state post office apparent substantial saving already make make post office department eliminate postal deficit recommend therefore congress approve bill pending house representative provide adjustment certain postal rate handle long term aspect also recommend congress create permanent commission establish fair reasonable postal rate time time future iii human problem along protection freedom maintenance strong grow economy administration recognize third great purpose government concern human problem citizen modern industrial society banishment destitution cushion shock personal disaster individual proper concern level government include federal government especially true remedy prevention alike beyond individual capacity labor welfare many problem area shall first discuss particular concern member great labor force head heart hand produce much wealth country protection hazard temporary unemployment extend 6½ million worker include civilian federal worker lack safeguard moreover secretary labor make available state study recommendation field weekly benefit period protection extension coverage economic report consider relate matter minimum wage coverage labor management relation act 3947 basically sound law however six year experience reveal respect improve january 11 shall forward congress suggestion change design reinforce basic objective act basic social security program survivor insurance system individual contribute productive year receive benefit base previous earnings design shield destitution last year recommend extension social insurance system include additional person ask extension soon accomplish major improvement insurance system bring substantial benefit increase broaden membership insurance system thus diminish need federal purpose new formula therefore propose permit progressive reduction grant need decline federal welfare program base widely vary formula simplify concrete proposal fourteen suggest appropriate committee program rehabilitation disable especially needs strengthen special vocational training program presently return year handicap individual productive work far disabled people save year idleness dependence program gradually increase detailed recommendation social insurance problem mention send congress january 14th health flatly oppose socialization medicine great need hospital medical service best meet initiative private plan unfortunately fact medical cost rise already impose severe hardship many family federal government many helpful thing still carefully avoid socialization medicine federal government encourage medical research battle mortal disease cancer heart ailment continue help state health rehabilitation program present hospital survey construction act broaden order assist development adequate facility chronically ill encourage construction diagnostic center rehabilitation facility nurse home war disease also need well work relationship government private initiative private hospital medical insurance plan already field soundly base experience initiative people various community limited government reinsurance service would permit private insurance company offer broad protection many family want january 18 shall forward congress special message present administration health program detail education youth great resource seriously neglect vital respect nation whole preparing teacher building school fast enough keep increase population preparation teacher indeed control direction public education policy state local responsibility however federal government stand ready assist state demonstrably provide sufficient school building order appraise need hope year conference education hold state culminate national conference conference education every level government federal government local school board gain information attack serious problem housing detail program enlarge improve opportunity people acquire good home present congress special message january program include modernization home mortgage insurance program federal government redirection present system loan city slum clearance redevelopment extension advantage insure lend private credit engage task rehabilitate obsolete neighborhood insurance mortgage loan small payment family alternative program prove effective continuation public housing program adopt housing act 1949 individual community state federal government alike apply every american family decent home veteran administration internal reorganization veteran administration proceed full approval complete afford single agency whose service include medical facility well adapt need veteran nation owes much suffrage remain recommendation relate basic right citizen represent decision government hope state cooperate congress adopt uniform standard vote law make possible citizen arm force overseas vote district columbia time long overdue grant national suffrage citizen also apply principle local nation capital urge congress move promptly direction also revise district revenue measure provide need public work improvement people hawaii ready statehood renew request legislation order hawaii may elect state official representative washington along rest country fall year citizens age 18 21 time peril summon fight america participate political process produce fateful summons urge congress propose state constitutional amendment permit citizen vote reach age 18 conclusion want add one final word general purport many recommendation government power wisely limited constitution quite apart limitation thing government try government strive striving maintain economic system whose door open enterprise ambition personal quality economic growth largely depend enterprise ambition quality government supply fortunately american government need concern score people quality good measure government sincerely strive peace strive ask people make sacrifice sake peace government place peace heart foreign ruler duty freedom remain strong way spiritual economic military give u maximum safety possibility aggressive action others government inoculate people fatal materialism plague age happily people though bless material good people history always reserve first allegiance kingdom spirit true source freedom value material thing government try try sense deep aspiration people express political action home abroad long action aspiration humbly earnestly seek favor sight almighty end america forward road obstacle surmount march toward last peace free prosperous world dwight eisenhower