[Read before a joint session by a clerk of the House of Representatives] [ .] To the Congress of the United States: The opening of this new year must arouse in us all grateful thanks to a kind Providence whose protection has been ever present and whose bounty has been manifold and abundant. The State of the Union today demonstrates what can be accomplished under God by a free people; by their vision, their understanding of national problems, their initiative, their self-reliance, their capacity for work--and by their willingness to sacrifice whenever sacrifice is needed. In the past three years, responding to what our people want their Government to do, the Congress and the Executive have done much in building a stronger, better America. There has been broad progress in fostering the energies of our people, in providing greater opportunity for the satisfaction of their need, s, and in fulfilling their demands for the strength and security of the Republic. Our country is at peace. Our security posture commands respect. A spiritual vigor marks our national life. Our economy, approaching the 400 billion dollar mark, is at an unparalleled level of prosperity. The national income is more widely and fairly distributed than ever before. The number of Americans at work has reached an all-time high. As a people, we are achieving ever higher standards of living--earning more, producing more, consuming more, building more and investing more than ever before. Virtually all sectors of our society are sharing in these good times. Our farm families, if we act wisely, imaginatively and promptly to strengthen our present farm programs, can also look forward to sharing equitably in the prosperity they have helped to create. War in Korea ended two and a half years ago. The collective security system has been powerfully strengthened. Our defenses have been reinforced at sharply reduced costs. Programs to expand world trade and to harness the atom for the betterment of mankind have been carried forward. Our economy has been freed from governmental wage and price controls. Inflation has been halted; the cost of living stabilized. Government spending has been cut by more than ten billion dollars. Nearly three hundred thousand positions have been eliminated from the Federal payroll. Taxes have been substantially reduced. A balanced budget is in prospect. Social security has been extended to ten million more Americans and unemployment insurance to four million more. Unprecedented advances in civil rights have been made. The long-standing and deep-seated problems of agriculture have been forthrightly attacked. This record of progress has been accomplished with a self imposed caution against unnecessary and unwise interference in the private affairs of our people, of their communities and of the several States. If we of the Executive and Legislative Branches, keeping this caution ever in mind, address ourselves to the business of the year before us--and to the unfinished business of last year--with resolution, the outlook is bright with promise. Many measures of great national importance recommended last year to the Congress still demand immediate attention legislation for school and highway construction; health and immigration legislation; water resources legislation; legislation to complete the implementation of our foreign economic policy; such labor legislation as amendments of the Labor-Management Relations Act, extension of the Fair Labor Standards Act to additional groups not now covered, and occupational safety legislation; and legislation for construction of an atomic-powered exhibit vessel. Many new items of business likewise require our attention-measures that will further promote the release of the energies of our people; that will broaden opportunity for all of them; that will advance the Republic in its leadership toward a just peace; measures, in short, that are essential to the building of an everstronger, ever-better America. Every political and economic guide supports a valid confidence that wise effort will be rewarded by an even more plentiful harvest of human benefit than we now enjoy. Our resources are too many, our principles too dynamic, our purposes too worthy and the issues at stake too immense for us to entertain doubt or fear. But our responsibilities require that we approach this year's business with a sober humility. A heedless pride in our present strength and position would blind us to the facts of the past, to the pitfalls of the future. We must walk ever in the knowledge that we are enriched by a heritage earned in the labor and sacrifice of our forebears; that, for our children's children, we are trustees of a great Republic and a time-tested political system; that we prosper as a cooperating member of the family of nations. In this light the Administration has continued work on its program for the Republic, begun three years ago. Because the. vast spread of national and human interests is involved within it, I shall not in this Message attempt its detailed delineation. Instead, from time to time during this Session, there will be submitted to the Congress specific recommendations within specific fields. In the comprehensive survey required for their preparation, the Administration is guided by enduring objectives. The first is: THE DISCHARGE OF OUR WORLD RESPONSIBILITY Our world policy and our actions are dedicated to the achievement of peace with justice for all nations. With this purpose, we move in a wide variety of ways and through many agencies to remove the pall of fear; to strengthen the ties with our partners and to improve the cooperative cohesion of the free world; to reduce the burden of armaments, and to stimulate and inspire action among all nations for a world of justice and prosperity and peace. These national objectives are fully supported by both our political parties. In the past year, our search for a more stable and just peace has taken varied forms. Among the most important were the two Conferences at Geneva, in July and in the fall of last year. We explored the possibilities of agreement on critical issues that jeopardize the peace. The July meeting of Heads of Government held out promise to the world of moderation in the bitterness, of word and action, which tends to generate conflict and war. All were in agreement that a nuclear war would be an intolerable disaster which must not be permitted to occur. But in October, when the Foreign Ministers met again, the results demonstrated conclusively that the Soviet leaders are not yet willing to create the indispensable conditions for a secure and lasting peace. Nevertheless, it is clear that the conflict between international communism and freedom has taken on a new complexion. We know the Communist leaders have often practiced the tactics of retreat and zigzag. We know that Soviet and Chinese communism still poses a serious threat to the free world. And in the Middle East recent Soviet moves are hardly compatible with the reduction of international tension. Yet Communist tactics against the free nations have shifted in emphasis from reliance on violence and the threat of violence to reliance on division, enticement and duplicity. We must be well prepared to meet the current tactics which pose a dangerous though less obvious threat. At the same time, our policy must be dynamic as well as flexible, designed primarily to forward the achievement of our own objectives rather than to meet each shift and change on the Communist front. We must act in the firm assurance that the fruits of freedom are more attractive and desirable to mankind in the pursuit of happiness than the record of Communism. In the face of Communist military power, we must, of course, continue to maintain an effective system of collective security. This involves two things--a system which gives clear warning that armed aggression will be met by joint action of the free nations, and deterrent military power to make that warning effective. Moreover, the awesome power of the atom must be made to serve as a guardian of the free community and of the peace. In the last year, the free world has seen major gains for the system of collective security: the accession to the North Atlantic Treaty Organization and Western European Union of the sovereign Federal German Republic; the developing cooperation under the Southeast Asia Collective Defense Treaty; and the formation in the Middle East of the Baghdad Pact among Turkey, Iraq, Iran, Pakistan and the United Kingdom. In our own hemisphere, the inter-American system has continued to show its vitality in maintaining peace and a common approach to world problems. We now have security pacts with more than 40 other nations. In the pursuit of our national purposes, we have been steadfast in our support of the United Nations, now entering its second decade with a wider membership and ever-increasing influence and usefulness. In the release of our fifteen fliers from Communist China, an essential prelude was the world opinion mobilized by the General Assembly, which condemned their imprisonment and demanded their liberation. The successful Atomic Energy Conference held in Geneva under United Nations auspices and our Atoms for Peace program have been practical steps toward the world-wide use of this new energy source. Our sponsorship of such use has benefited our relations with other countries. Active negotiations are now in progress to create an International Agency to foster peaceful uses of atomic energy. During the past year the crucial problem of disarmament has moved to the forefront of practical political endeavor. At Geneva, I declared the readiness of the United States to exchange blueprints of the military establishments of our nation and the USSR, to be confirmed by reciprocal aerial reconnaissance. By this means, I felt mutual suspicions could be allayed and an atmosphere developed in which negotiations looking toward limitation of arms would have improved chances of success. In the United Nations Subcommittee on Disarmament last fall, this proposal was explored and the United States also declared itself willing to include reciprocal ground inspection of key points. By the overwhelming vote of 56 to 7, the United Nations on December 16 endorsed these proposals and gave them a top priority. Thereby, the issue is placed squarely before the bar of world opinion. We shall persevere in seeking a general reduction of armaments under effective inspection and control which are essential safeguards to ensure reciprocity and protect the security of all. In the coming year much remains to be done. While maintaining our military deterrent, we must intensify our efforts to achieve a just peace. In Asia we shall continue to give help to nations struggling to maintain their freedom against the threat of Communist coercion or subversion. In Europe we shall endeavor to increase not only the military strength of the North Atlantic Alliance but also its political cohesion and unity of purpose. We shall give such assistance as is feasible to the recently renewed effort of Western European nations to achieve a greater measure of integration, such as in the field of peaceful uses of atomic energy. In the Near East we shall spare no effort in seeking to promote a fair solution of the tragic dispute between the Arab States and Israel, all of whom we want as our friends. The United States is ready to do its part to assure enduring peace in that area. We hope that both sides will make the contributions necessary to achieve that purpose. In Latin America, we shall continue to cooperate vigorously in trade and other measures designed to assist economic progress in the area. Strong economic ties are an essential element in our free world partnership. Increasing trade and investment help all of us prosper together. Gratifying progress has been made in this direction, most recently by the three-year extension of our trade agreements legislation. I most earnestly request that the Congress approve our membership in the Organization for Trade Cooperation, which would assist the carrying out of the General Agreement on Tariffs and Trade to which we have been a party since 1948. Our membership in the OTC will provide the most effective and expeditious means for removing discriminations and restrictions against American exports and in making our trade agreements truly reciprocal. United States membership in the Organization will evidence our continuing desire to cooperate in promoting an expanded trade among the free nations. Thus the Organization, as proposed, is admirably suited to our own interests and to those of like-minded nations in working for steady expansion of trade and closer economic cooperation. Being strictly an administrative entity, the Organization for Trade Cooperation cannot, of course, alter the control by Congress of the tariff, import, and customs policies of the United States. We need to encourage investment overseas by avoiding unfair tax duplications, and to foster foreign trade by further simplification and improvement of our customs legislation. We must sustain and fortify our Mutual Security Program. Because the conditions of poverty and unrest in less developed areas make their people a special target of international communism, there is a need to help them achieve the economic growth and stability necessary to preserve their independence against communist threats and enticements. In order that our friends may better achieve the greater strength that is our common goal, they need assurance of continuity in economic assistance for development projects and programs which we approve and which require a period of years for planning and completion. Accordingly, I ask Congress to grant limited authority to make longer-term commitments for assistance to such projects, to be fulfilled from appropriations to be made in future fiscal years. These various steps will powerfully strengthen the economic foundation of our foreign policy. Together with constructive action abroad, they will maintain the present momentum toward general economic progress and vitality of the free world. In all things, change is the inexorable law of life. In much of the world the ferment of change is working strongly; but grave injustices are still uncorrected. We must not, by any sanction of ours, help to perpetuate these wrongs. I have particularly in mind the oppressive division of the German people, the bondage of millions elsewhere, and the exclusion of Japan from United Nations membership. We shall keep these injustices in the forefront of human consciousness and seek to maintain the pressure of world opinion to fight these vast wrongs in the interest both of justice and secure peace. Injustice thrives on ignorance. Because an understanding of the truth about America is one of our most powerful forces, I am recommending a substantial increase in budgetary support of the United States Information Agency. The sum of our international effort should be this: the waging of peace, with as much resourcefulness, with as great a sense of dedication and urgency, as we have ever mustered in defense of our country in time of war. In this effort, our weapon is not force. Our weapons are the principles and ideas embodied in our historic traditions, applied with the same vigor that in the past made America a living promise of freedom for all mankind. To accomplish these vital tasks, all of us should be concerned with the strength, effectiveness and morale .of our State Department and our Foreign Service. Another guide in the preparation of the Administration's program is: THE CONSTANT IMPROVEMENT OF OUR NATIONAL SECURITY Because peace is the keystone of our national policy, our defense program emphasizes an effective flexible type of power calculated to deter or repulse any aggression and to preserve the peace. Short of war, we have never had military strength better adapted to our needs with improved readiness for emergency use. The maintenance of this strong military capability for the indefinite future will continue to call for a large share of our national budget. Our military programs must meet the needs of today. To build less would expose the nation to aggression. To build excessively, under the influence of fear, could defeat our purposes and impair or destroy the very freedom and economic system our military defenses are designed to protect. We have improved the effectiveness and combat readiness of our forces by developing and making operational new weapons and by integrating the latest scientific developments, including new atomic weapons, into our military plans. We continue to push the production of the most modern military aircraft. The development of long-range missiles has been on an accelerated basis for some time. We are moving as rapidly as practicable toward nuclear-powered aircraft and ships. Combat capability, especially in terms of firepower, has been substantially increased. We have made the adjustments in personnel permitted by the cessation of the Korean War, the buildup of our allies and the introduction of new weapons. The services are all planning realistically on a long-term basis. To strengthen our continental defenses the United States and Canada, in the closest cooperation, have substantially augmented early warning networks. Great progress is being made in extending surveillance of the Arctic, the Atlantic and the Pacific approaches to North America. In the last analysis our real strength lies in the caliber of the men and women in our Armed Forces, active and Reserve. Much has been done to attract and hold capable military personnel, but more needs to be done. This year, I renew my request of last year for legislation to provide proper medical care for military dependents and a more equitable survivors' benefit program. The Administration will prepare additional recommendations designed to achieve the same objectives, including career incentives for medical and dental officers and nurses, and increases in the proportion of regular officers. Closely related to the mission of the Defense Department is the task of the Federal Civil Defense Administration. A particular point of relationship arises from the fact that the key to civil defense is the expanded continental defense program, including the distant early warning system. Our Federal civil defense authorities have made progress in their program, and now comprehensive studies are being conducted jointly by the Federal Civil Defense Administration, the States, and critical target cities to determine the best procedures that can be adopted in case of an atomic attack. We must strengthen Federal assistance to the States and cities in devising the most effective common defense. We have a broad and diversified mobilization base. We have the facilities, materials, skills and knowledge rapidly to expand the production of things we need for our defense whenever they are required. But mobilization base requirements change with changing technology and strategy. We must maintain flexibility to meet new requirements. I am requesting, therefore, that the Congress once again extend the Defense Production Act. Of great importance to our nation's security is a continuing alertness to internal subversive activity within or without our government. This Administration will not relax its efforts to deal forthrightly and vigorously in protection of this government and its citizens against subversion, at the same time fully protecting the constitutional rights of all citizens. A third objective of the Administration is: FISCAL INTEGRITY A public office is, indeed, a public trust. None of its aspects is more demanding than the proper management of the public finances. I refer now not only to the indispensable virtues of plain honesty and trustworthiness but also to the prudent, effective and conscientious use of tax money. I refer also to the attitude of mind that makes efficient and economical service to the people a watchword in our government. Over the long term, a balanced budget is a sure index to thrifty management--in a home, in a business or in the Federal Government. When achievement of a balanced budget is for long put off in a business or home, bankruptcy is the result. But in similar circumstances a government resorts to inflation of the money supply. This inevitably results in depreciation of the value of the money, and an increase in the cost of living. Every investment in personal security is threatened by this process of inflation, and the real values of the people's savings, whether in the form of insurance, bonds, pension and retirement funds or savings accounts are thereby shriveled. We have made long strides these past three years in bringing our Federal finances under control. The deficit for fiscal year 1953 was almost 9-1/2 billion dollars. Larger deficits seemed certain--deficits which would have depreciated the value of the dollar and pushed the cost of living still higher. But government waste and extravagance were searched out. Nonessential activities were dropped. Government expenses were carefully scrutinized. Total spending was cut by 14 billion dollars below the amount planned by the previous Administration for the fiscal year 1954. This made possible--and it was appropriate in the existing circumstances of transition to a peacetime economy--the largest tax cut in any year in our history. Almost 7-½ billion dollars were released and every taxpayer in the country benefited. Almost two-thirds of the savings went directly to individuals. This tax cut also helped to build up the economy, to make jobs in industry and to increase the production .of the many things desired to improve the scale of living for the great majority of Americans. The strong expansion of the economy, coupled with a constant care for efficiency in government operations and an alert guard against waste and duplication, has brought us to a prospective balance between income and expenditure. This is being done while we continue to strengthen our military security. I expect the budget to be in balance during the fiscal year ending June 30, 1956. I shall propose a balanced budget for the next fiscal year ending June 30, 1957. But the balance we are seeking cannot be accomplished without the continuing every-day effort of the Executive and Legislative Branches to keep expenditures under control. It will also be necessary to continue all of the present excise taxes without any reduction and the corporation income taxes at their present rates for another year beyond next April 1st. It is unquestionably true that our present tax level is very burdensome and, in the interest of long term and continuous economic growth, should be reduced when we prudently can. It is essential, in the sound management of the Government's finances, that we be mindful of our enormous national debt and of the obligation we have toward future Americans to reduce that debt whenever we can appropriately do so. Under conditions of high peacetime prosperity, such as now exist, we can never justify going further into debt to give ourselves a tax cut at the expense of our children. So, in the present state of our financial affairs, I earnestly believe that a tax cut can be deemed justifiable only when it will not unbalance the budget, a budget which makes provision for some reduction, even though modest, in our national debt. In this way we can best maintain fiscal integrity. A fourth aim of our program is: TO FOSTER A STRONG ECONOMY Our competitive enterprise system depends on the energy of free human beings, limited by prudent restraints in law, using free markets to plan, organize and distribute production, and spurred by the prospect of reward for successful effort. This system has developed our resources. It has marvelously expanded our productive capacity. Against the record of all other economic systems devised through the ages, this competitive system has proved the most creative user of human skills in the development of physical resources, and the richest rewarder of human effort. This is still true in this era when improved living standards and rising national requirements are accompanied by swift advances in technology and rapid obsolescence in machines and methods. Typical of these are the strides made in construction of plants to produce electrical energy from atomic power and of laboratories and installations for the application of this new force in industry, agriculture and the healing arts. These developments make it imperative--to assure effective functioning of our enterprise system--that the Federal Government concern itself with certain broad areas of our economic life. Most important of these is: Agriculture Our farm people are not sharing as they should in the general prosperity. They alone of all major groups have seen their incomes decline rather than rise. They are caught between two millstones--rising production costs and declining prices. Such harm to a part of the national economy so vitally important to everyone is of great concern to us all. No other resource is so indispensable as the land that feeds and clothes us. No group is more fundamental to our national life than our farmers. In successful prosecution of the war, the nation called for the utmost effort of its farmers. Their response was superb, their contribution unsurpassed. Farmers are not now to be blamed for the mountainous, price-depressing surpluses produced in response to wartime policies and laws that were too long continued. War markets are not the markets of peacetime. Failure to recognize that basic fact by a timely adjustment of wartime legislation brought its inevitable result in peacetime--surpluses, lower prices and lower incomes for our farmers. The dimensions of government responsibility are as broad and complex as the farm problem itself. We are here concerned not only with our essential continuing supplies of food and fiber, but also with a way of life. Both are indispensable to the well-being and strength of the nation. Consideration of these matters must be above and beyond politics. Our national farm policy, so vital to the welfare of farm people and all of us, must not become a field for political warfare. Too much is at stake. Our farm people expect of us, who have responsibility for their government, understanding of their problems and the will to help solve them. Our objective must be to help bring production into balance with existing and new markets, at prices that yield farmers a return for their work in line with what other Americans get. To reach this goal, deep-seated problems must be subjected to a stepped-up attack. There is no single easy solution. Rather, there must be a many-sided assault on the stubborn problems of surpluses, prices, costs, and markets; and a steady, persistent, imaginative advance in the relationship between farmers and their government. In a few days, by special message, I shall lay before the Congress my detailed recommendations for new steps that should be taken promptly to speed the transition in agriculture and thus assist our farmers to achieve their fair share of the national income. Basic to this program will be a new attack on the surplus problem-for even the best-conceived farm program cannot work under a multi-billion dollar weight of accumulated stocks. I shall urge authorization of a soil bank program to alleviate the problem of diverted acres and an overexpanded agricultural plant. This will include an acreage reserve to reduce current and accumulated surpluses of crops in most serious difficulty, and a conservation reserve to achieve other needed adjustments in the use of agricultural resources. I shall urge measures to strengthen our surplus disposal activities. I shall propose measures to strengthen individual commodity programs, to remove controls where possible, to reduce carryovers, and to stop further accumulations of surpluses. I shall ask the Congress to provide substantial new funds for an expanded drive on the research front, to develop new markets, new crops, and new uses. The Rural Development Program to better the lot of low-income farm families deserves full Congressional support. The Great Plains Program must go forward vigorously. Advances on these and other fronts will pull down the pricedepressing surpluses and raise farm income. In this time of testing in agriculture, we should all together, regardless of party, carry forward resolutely with a sound and forward looking program on which farm people may confidently depend, now and for years to come. I shall briefly mention four other subjects directly related to the well-being of the economy, preliminary to their fuller discussion in the Economic Report and later communications. Resources Conservation I wish to re-emphasize the critical importance of the wise use and conservation of our great natural resources of land, forests, minerals and water and their long-range development consistent with our agricultural policy. Water in particular now plays an increasing role in industrial processes, in the irrigation of land, in electric power, as well as in domestic uses. At the same time, it has the potential of damage and disaster. A comprehensive legislative program for water conservation will be submitted to the Congress during the Session. The development of our water resources cannot be accomplished overnight. The need is such that we must make faster progress and without delay. Therefore, I strongly recommend that action be taken at this Session on such wholly Federal projects as the Colorado River Storage Project and the Fryingpan-Arkansas Project; on the John Day partnership project, and other projects which provide for cooperative action between the Federal Government and non-Federal interests; and on legislation, which makes provision for Federal participation in small projects under the primary sponsorship of agencies of State and local government. During the past year the areas of our National Parks have been expanded, and new wildlife refuges have been created. The visits of our people to the Parks have increased much more rapidly than have the facilities to care for them. The Administration will submit recommendations to provide more adequate facilities to keep abreast of the increasing interest of our people in the great outdoors. Disaster Assistance A modern community is a complex combination of skills, specialized buildings, machines, communications and homes. Most importantly, it involves human lives. Disaster in many forms--by flood, frost, high winds, for instance--can destroy on a massive scale in a few hours the labor of many years. Through the past three years the Administration has repeatedly moved into action wherever disaster struck. The extent of State participation in relief activities, however, has been far from uniform and, in many cases, has been either inadequate or nonexistent. Disaster assistance legislation requires overhauling and an experimental program of flood-damage indemnities should be undertaken. The Administration will make detailed recommendations on these subjects. Area Redevelopment We must help deal with the pockets of chronic unemployment that here and there mar the nation's general industrial prosperity. Economic changes in recent years have been often so rapid and far-reaching that areas committed to a single local resource or industrial activity have found themselves temporarily deprived of their markets and their livelihood. Such conditions mean severe hardship for thousands of people as the slow process of adaptation to new circumstances goes on. This process can be speeded up. Last year I authorized a major study of the problem to find additional steps to supplement existing programs for the redevelopment of areas of chronic unemployment. Recommendations will be submitted, designed to supplement, with Federal technical and loan assistance local efforts to get on with this vital job. Improving such communities must, of course, remain the primary responsibility of the people living there and of their States. But a soundly conceived Federal partnership program can be of real assistance to them in their efforts. Highway Legislation. Legislation to provide a modern, interstate highway system is even more urgent this year than last, for 12 months have now passed in which we have fallen further behind in road construction needed for the personal safety, the general prosperity, the national security of the American people. During the year, the number of motor vehicles has increased from 58 to 61 million. During the past year over 38,000 persons lost their lives in highway accidents, while the fearful toll of injuries and property damage has gone on unabated. In my message of February 22, 1955, I urged that measures be taken to complete the vital 40,000 mile interstate system over a period of 10 years at an estimated Federal cost of approximately 25 billion dollars. No program was adopted. If we are ever to solve our mounting traffic problem, the whole interstate system must be authorized as one project, to be completed approximately within the specified time. Only in this way can industry efficiently gear itself to the job ahead. Only in this way can the required planning and engineering be accomplished without the confusion and waste unavoidable a piecemeal approach. Furthermore, as I pointed out last year, the pressing nature of this problem must not lead us to solutions outside the bounds of sound fiscal management. As in the case of other pressing problems, there must be an adequate plan of financing. To continue the drastically needed improvement in other national highway systems, I recommend the continuation of the Federal Aid Highway Program. Aside from agriculture and the four subjects specifically mentioned, an integral part of our efforts to foster a strong and expanding free economy is keeping open the door of opportunity to new and small enterprises, checking monopoly, and preserving a competitive environment. In this past year the steady improvement in the economic health of small business has reinforced the vitality of our competitive economy. We shall continue to help small business concerns to obtain access to adequate financing and to competent counsel on management, production, and marketing problems. Through measures already taken, opportunities for smallbusiness participation in government procurement programs, including military procurement, are greatly improved. The effectiveness of these measures will become increasingly apparent. We shall continue to make certain that small business has a fair opportunity to compete and has an economic environment in which it may prosper. In my message last year I referred to the appointment of an advisory committee to appraise and report to me on the deficiencies as well as the effectiveness of existing Federal transportation policies. I have commended the fundamental purposes and objectives of the committee's report. I earnestly recommend that the Congress give prompt attention to the committee's proposals. Essential to a prosperous economic environment for all business, small and large--for agriculture and industry and commerce-is efficiency in Government. To that end, exhaustive studies of the entire governmental structure were made by the Commission on Intergovernmental Relations and the Commission on the Organization of the Executive Branch of the Government--the reports of these Commissions are now under intensive review and already in the process of implementation in important areas. One specific and most vital governmental function merits study and action by the Congress. As part of our program of promoting efficiency in Government and getting the fiscal situation in hand, the Post Office Department in the past three years has been overhauled. Nearly one thousand new post offices have been provided. Financial practices have been modernized, and transportation and operating methods are being constantly improved. A new wage and incentive plan for the half million postal employees has been established. Never before has the postal system handled so much mail so quickly and so economically. The Post Office Department faces two serious problems. First, much of its physical plant--post offices and other buildings-is obsolete and inadequate. Many new buildings and the modernization of present ones are essential if we are to have improved mail service. The second problem is the Department's fiscal plight. It now faces an annual deficit of one-half billion dollars. Recommendations on postal facilities and on additional postal revenues will be submitted to the Congress. A final consideration in our program planning is: THE RESPONSE TO HUMAN CONCERNS A fundamental belief shines forth in this Republic. We believe in the worth and dignity of the individual. We know that if we are to govern ourselves wisely--in the tradition of America--we must have the opportunity to develop our individual capacities to the utmost. To fulfill the individual's aspirations in the American way of life, good education is fundamental. Good education is the outgrowth of good homes, good communities, good churches, and good schools. Today our schools face pressing problems--problems which will not yield to swift and easy solutions, or to any single action. They will yield only to a continuing, active, formed effort by the people toward achieving better schools. This kind of effort has been spurred by the thousands of conferences held in recent months by half a million citizens and educators in all parts of the country, culminating in the White House Conference on Education. In that Conference, some two thousand delegates, broadly representative of the nation, studied together the problems of the nation's schools. They concluded that the people of the United States must make a greater effort through their local, State, and Federal Governments to improve the education of our youth. This expression from the people must now be translated into action at all levels of government. So far as the Federal share of responsibility is concerned, I urge that the Congress move promptly to enact an effective program of Federal assistance to help erase the existing deficit of school classrooms. Such a program, which should be limited to a five-year period, must operate to increase rather than decrease local and State support of schools and to give the greatest help to the States and localities with the least financial resources. Federal aid should in no way jeopardize the freedom of local school systems. There will be presented to the Congress a recommended program of Federal assistance for school construction. Such a program should be accompanied by action to increase services to the nation's schools by the Office of Education and by legislation to provide continuation of payments to school districts where Federal activities have impaired the ability of those districts to provide adequate schools. Under the 1954 Amendments to the old-age and survivors' insurance program, protection was extended to some 10 million additional workers and benefits were increased. The system now helps protect 9 out of 10 American workers and their families against loss of income in old age or on the death of the breadwinner. The system is sound. It must be kept so. In developing improvements in the system, we must give the most careful consideration to population and social trends, and to fiscal requirements. With these considerations in mind, the Administration will present its recommendations for further expansion of coverage and other steps which can be taken wisely at this time. Other needs in the area of social welfare include increased child welfare services, extension of the program of aid to dependent children, intensified attack on juvenile delinquency, and special attention to the problems of mentally retarded children. The training of more skilled workers for these fields and the quest for new knowledge through research in social welfare are essential. Similarly the problems of our aged people need our attention. The nation has made dramatic progress in conquering disease--progress of profound human significance which can be greatly accelerated by an intensified effort in medical research. A well-supported, well-balanced program of research, including basic research, can open new frontiers of knowledge, prevent and relieve suffering, and prolong life. Accordingly I shall recommend a substantial increase in Federal funds for the support of such a program. As an integral part of this effort, I shall recommend a new plan to aid construction of non-Federal medical research and teaching facilities and to help provide more adequate support for the training of medical research manpower. Finally, we must aid in cushioning the heavy and rising costs of illness and hospitalization to individuals and families. Provision should be made, by Federal reinsurance or otherwise, to foster extension of voluntary health insurance coverage to many more persons, especially older persons and those in rural areas. Plans should be evolved to improve protection against the costs of prolonged or severe illness. These measures will help reduce the dollar barrier between many Americans and the benefits of modern medical care. The Administration health program will be submitted to the Congress in detail. The response of government to human concerns embraces, of course, other measures of broad public interest, and of special interest to our working men and women. The need still exists for improvement of the Labor Management Relations Act. The recommendations I submitted to the Congress last year take into account not only the interests of labor and management but also the public welfare. The needed amendments should be enacted without further delay. We must also carry forward the job of improving the wagehour law. Last year I requested the Congress to broaden the coverage of the minimum wage. I repeat that recommendation, and I pledge the full resources of the Executive Branch to assist the Congress in finding ways to attain this goal. Moreover, as requested last year, legislation should be passed to clarify and strengthen the eight-hour laws for the benefit of workers who are subject to Federal wage standards on Federal and Federally assisted construction and other public works. The Administration will shortly propose legislation to assure adequate disclosure of the financial affairs of each employee pension and welfare plan and to afford substantial protection to their beneficiaries in accordance with the objectives outlined in my message of January 11, 1954. Occupational safety still demands attention, as I pointed out last year, and legislation to improve the Longshoremen's and Harbor Workers' Compensation Act is still needed. The improvement of the District of Columbia Unemployment Insurance Law and legislation to provide employees in the District with non-occupational disability insurance are no less necessary now than 12 months ago. Legislation to apply the principle of equal pay for equal work without discrimination because of sex is a matter of simple justice. I earnestly urge the Congress to move swiftly to implement these needed labor measures. In the field of human needs, we must carry forward the housing program, which is contributing so greatly to the well-being of our people and the prosperity of our economy. Home ownership is now advanced to the point where almost three of every five families in our cities, towns, and suburbs own the houses they live in. For the housing program, most of the legislative authority already exists. However, a firm program of public housing is essential until the private building industry has found ways to provide more adequate housing for low-income families. The Administration will propose authority to contract for 35 thousand additional public housing units in each of the next 2 fiscal years for communities which will participate in an integrated attack on slums and blight. To meet the needs of the growing number of older people, several amendments to the National Housing Act will be proposed to assist the private homebuilding industry as well as charitable and non-profit organizations. With so large a number of the American people desiring to modernize and improve existing dwellings, I recommend that the Title 1 program for permanent improvements in the home be liberalized. I recommend increases in the general FHA mortgage insurance authority; the extension of the FHA military housing program; an increase in the authorization for Urban Planning grants; in the special assistance authority of the Federal National Mortgage Association; and continued support of the college housing program in a way that will not discourage private capital from helping to meet the needs of our colleges. The legislation I have recommended for workers in private industry should be accompanied by a parallel effort for the welfare of Government employees. We have accomplished much in this field, including a contributory life insurance program; equitable pay increases and a fringe benefits program, covering many needed personnel policy changes, from improved premium pay to a meaningful incentive award program. Additional personnel management legislation is needed in this Session. As I stated last year, an executive pay increase is essential to efficient governmental management. Such an increase, together with needed adjustments in the pay for the top career positions, is also necessary to the equitable completion of the Federal pay program initiated last year. Other legislation will be proposed, including legislation for prepaid group health insurance for employees and their dependents and to effect major improvements in the Civil Service retirement system. All of us share a continuing concern for those who have served this nation in the Armed Forces. The Commission on Veterans Pensions is at this time conducting a study of the entire field of veterans' benefits and will soon submit proposed improvements. We are proud of the progress our people have made in the field of civil rights. In Executive Branch operations throughout the nation, elimination of discrimination and segregation is all but completed. Progress is also being made among contractors engaged in furnishing Government services and requirements. Every citizen now has the opportunity to fit himself for and to hold a position of responsibility in the service of his country. In the District of Columbia, through the voluntary cooperation of the people, discrimination and segregation are disappearing from hotels, theaters, restaurants and other facilities. It is disturbing that in some localities allegations persist that Negro citizens are being deprived of their right to vote and are likewise being subjected to unwarranted economic pressures. I recommend that the substance of these charges be thoroughly examined by a Bipartisan Commission created by the Congress. It is hoped that such a commission will be established promptly so that it may arrive at findings which can receive early consideration. The stature of our leadership in the free world has increased through the past three years because we have made more progress than ever before in a similar period to assure our citizens equality in justice, in opportunity and in civil rights. We must expand this effort on every front. We must strive to have every person judged and measured by what he is, rather than by his color, race or religion. There will soon be recommended to the Congress a program further to advance the efforts of the Government, within the area of Federal responsibility, to accomplish these objectives. One particular challenge confronts us. In the Hawaiian Islands, East meets West. To the Islands, Asia and Europe and the Western Hemisphere, all the continents, have contributed their peoples and their cultures to display a unique example of a community that is a successful laboratory in human brotherhood. Statehood, supported by the repeatedly expressed desire of the Islands' people and by our traditions, would be a shining example of the American way to the entire earth. Consequently, I urgently request this Congress to grant statehood for Hawaii. Also, in harmony with the provisions I last year communicated to the Senate and House Committees on Interior and Insular Affairs, I trust that progress toward statehood for Alaska can be made in this Session. Progress is constant toward full integration of our Indian citizens into normal community life. During the past two years the Administration has provided school facilities for thousands of Indian children previously denied this opportunity. We must continue to meet the needs of increased numbers of Indian children. Provision should also be made for the education of adult Indians whose schooling in earlier years was neglected. In keeping with our responsibility of world leadership and in our own self interest, I again point out to the Congress the urgent need for revision of the immigration and nationality laws. Our nation has always welcomed immigrants to our shores. The wisdom of such a policy is clearly shown by the fact that America has been built by immigrants and the descendants of immigrants. That policy must be continued realistically with present day conditions in mind. I recommend that the number of persons admitted to this country annually be based not on the 1920 census but on the latest, the 1950 census. Provision should be made to allow for greater flexibility in the use of quotas so if one country does not use its share, the vacancies may be made available for the use of qualified individuals from other countries. The law should be amended to permit the Secretary of State and the Attorney General to waive the requirements of fingerprinting on a reciprocal basis for persons coming to this country for temporary visits. This and other changes in the law are long overdue and should be taken care of promptly. Detailed recommendations for revision of the immigration laws will be submitted to the Congress. I am happy to report substantial progress in the flow of immigrants under the Refugee Relief Act of 1953; however, I again request this Congress to approve without further delay the urgently needed amendments to that act which I submitted in the last Session. Because of the high prosperity in Germany and Austria, the number of immigrants from those countries will be reduced. This will make available thousands of unfilled openings which I recommend be distributed to Greece and Italy and to escapees from behind the Iron Curtain. Once again I ask the Congress to join with me in demonstrating our belief in the right of suffrage. I renew my request that the principle of self-government be extended and the right of suffrage granted to the citizens of the District of Columbia. To conclude: the vista before us is bright. The march of science, the expanding economy, the advance in collective security toward a just peace--in this threefold movement our people are creating new standards by which the future of the Republic may be judged. Progress, however, will be realized only as it is more than matched by a continuing growth in the spiritual strength of the nation. Our dedication to moral values must be complete in our dealings abroad and in our relationships among ourselves. We have single-minded devotion to the common good of America. Never must we forget that this means the well-being, the prosperity, the security of all Americans in every walk of life. To the attainment of these objectives, I pledge full energies of the Administration, as in the Session ahead, it works on a program for submission to you, the Congress of the United States. DWIGHT D. EISENHOWER
[Read before a joint session by a clerk of the House of Representatives] [ .] To the Congress of the United States: The opening of this new year must arouse in us all grateful thanks to a kind Providence whose protection has been ever present and whose bounty has been manifold and abundant. The State of the Union today demonstrates what can be accomplished under God by a free people; by their vision, their understanding of national problems, their initiative, their self-reliance, their capacity for work--and by their willingness to sacrifice whenever sacrifice is needed. In the past three years, responding to what our people want their Government to do, the Congress and the Executive have done much in building a stronger, better America. There has been broad progress in fostering the energies of our people, in providing greater opportunity for the satisfaction of their need, s, and in fulfilling their demands for the strength and security of the Republic. Our country is at peace. Our security posture commands respect. A spiritual vigor marks our national life. Our economy, approaching the 400 billion dollar mark, is at an unparalleled level of prosperity. The national income is more widely and fairly distributed than ever before. The number of Americans at work has reached an all-time high. As a people, we are achieving ever higher standards of living--earning more, producing more, consuming more, building more and investing more than ever before. Virtually all sectors of our society are sharing in these good times. Our farm families, if we act wisely, imaginatively and promptly to strengthen our present farm programs, can also look forward to sharing equitably in the prosperity they have helped to create. War in Korea ended two and a half years ago. The collective security system has been powerfully strengthened. Our defenses have been reinforced at sharply reduced costs. Programs to expand world trade and to harness the atom for the betterment of mankind have been carried forward. Our economy has been freed from governmental wage and price controls. Inflation has been halted; the cost of living stabilized. Government spending has been cut by more than ten billion dollars. Nearly three hundred thousand positions have been eliminated from the Federal payroll. Taxes have been substantially reduced. A balanced budget is in prospect. Social security has been extended to ten million more Americans and unemployment insurance to four million more. Unprecedented advances in civil rights have been made. The long-standing and deep-seated problems of agriculture have been forthrightly attacked. This record of progress has been accomplished with a self imposed caution against unnecessary and unwise interference in the private affairs of our people, of their communities and of the several States. If we of the Executive and Legislative Branches, keeping this caution ever in mind, address ourselves to the business of the year before us--and to the unfinished business of last year--with resolution, the outlook is bright with promise. Many measures of great national importance recommended last year to the Congress still demand immediate attention legislation for school and highway construction; health and immigration legislation; water resources legislation; legislation to complete the implementation of our foreign economic policy; such labor legislation as amendments of the Labor-Management Relations Act, extension of the Fair Labor Standards Act to additional groups not now covered, and occupational safety legislation; and legislation for construction of an atomic-powered exhibit vessel. Many new items of business likewise require our attention-measures that will further promote the release of the energies of our people; that will broaden opportunity for all of them; that will advance the Republic in its leadership toward a just peace; measures, in short, that are essential to the building of an everstronger, ever-better America. Every political and economic guide supports a valid confidence that wise effort will be rewarded by an even more plentiful harvest of human benefit than we now enjoy. Our resources are too many, our principles too dynamic, our purposes too worthy and the issues at stake too immense for us to entertain doubt or fear. But our responsibilities require that we approach this year's business with a sober humility. A heedless pride in our present strength and position would blind us to the facts of the past, to the pitfalls of the future. We must walk ever in the knowledge that we are enriched by a heritage earned in the labor and sacrifice of our forebears; that, for our children's children, we are trustees of a great Republic and a time-tested political system; that we prosper as a cooperating member of the family of nations. In this light the Administration has continued work on its program for the Republic, begun three years ago. Because the. vast spread of national and human interests is involved within it, I shall not in this Message attempt its detailed delineation. Instead, from time to time during this Session, there will be submitted to the Congress specific recommendations within specific fields. In the comprehensive survey required for their preparation, the Administration is guided by enduring objectives. The first is: THE DISCHARGE OF OUR WORLD RESPONSIBILITY Our world policy and our actions are dedicated to the achievement of peace with justice for all nations. With this purpose, we move in a wide variety of ways and through many agencies to remove the pall of fear; to strengthen the ties with our partners and to improve the cooperative cohesion of the free world; to reduce the burden of armaments, and to stimulate and inspire action among all nations for a world of justice and prosperity and peace. These national objectives are fully supported by both our political parties. In the past year, our search for a more stable and just peace has taken varied forms. Among the most important were the two Conferences at Geneva, in July and in the fall of last year. We explored the possibilities of agreement on critical issues that jeopardize the peace. The July meeting of Heads of Government held out promise to the world of moderation in the bitterness, of word and action, which tends to generate conflict and war. All were in agreement that a nuclear war would be an intolerable disaster which must not be permitted to occur. But in October, when the Foreign Ministers met again, the results demonstrated conclusively that the Soviet leaders are not yet willing to create the indispensable conditions for a secure and lasting peace. Nevertheless, it is clear that the conflict between international communism and freedom has taken on a new complexion. We know the Communist leaders have often practiced the tactics of retreat and zigzag. We know that Soviet and Chinese communism still poses a serious threat to the free world. And in the Middle East recent Soviet moves are hardly compatible with the reduction of international tension. Yet Communist tactics against the free nations have shifted in emphasis from reliance on violence and the threat of violence to reliance on division, enticement and duplicity. We must be well prepared to meet the current tactics which pose a dangerous though less obvious threat. At the same time, our policy must be dynamic as well as flexible, designed primarily to forward the achievement of our own objectives rather than to meet each shift and change on the Communist front. We must act in the firm assurance that the fruits of freedom are more attractive and desirable to mankind in the pursuit of happiness than the record of Communism. In the face of Communist military power, we must, of course, continue to maintain an effective system of collective security. This involves two things--a system which gives clear warning that armed aggression will be met by joint action of the free nations, and deterrent military power to make that warning effective. Moreover, the awesome power of the atom must be made to serve as a guardian of the free community and of the peace. In the last year, the free world has seen major gains for the system of collective security: the accession to the North Atlantic Treaty Organization and Western European Union of the sovereign Federal German Republic; the developing cooperation under the Southeast Asia Collective Defense Treaty; and the formation in the Middle East of the Baghdad Pact among Turkey, Iraq, Iran, Pakistan and the United Kingdom. In our own hemisphere, the inter-American system has continued to show its vitality in maintaining peace and a common approach to world problems. We now have security pacts with more than 40 other nations. In the pursuit of our national purposes, we have been steadfast in our support of the United Nations, now entering its second decade with a wider membership and ever-increasing influence and usefulness. In the release of our fifteen fliers from Communist China, an essential prelude was the world opinion mobilized by the General Assembly, which condemned their imprisonment and demanded their liberation. The successful Atomic Energy Conference held in Geneva under United Nations auspices and our Atoms for Peace program have been practical steps toward the world-wide use of this new energy source. Our sponsorship of such use has benefited our relations with other countries. Active negotiations are now in progress to create an International Agency to foster peaceful uses of atomic energy. During the past year the crucial problem of disarmament has moved to the forefront of practical political endeavor. At Geneva, I declared the readiness of the United States to exchange blueprints of the military establishments of our nation and the USSR, to be confirmed by reciprocal aerial reconnaissance. By this means, I felt mutual suspicions could be allayed and an atmosphere developed in which negotiations looking toward limitation of arms would have improved chances of success. In the United Nations Subcommittee on Disarmament last fall, this proposal was explored and the United States also declared itself willing to include reciprocal ground inspection of key points. By the overwhelming vote of 56 to 7, the United Nations on December 16 endorsed these proposals and gave them a top priority. Thereby, the issue is placed squarely before the bar of world opinion. We shall persevere in seeking a general reduction of armaments under effective inspection and control which are essential safeguards to ensure reciprocity and protect the security of all. In the coming year much remains to be done. While maintaining our military deterrent, we must intensify our efforts to achieve a just peace. In Asia we shall continue to give help to nations struggling to maintain their freedom against the threat of Communist coercion or subversion. In Europe we shall endeavor to increase not only the military strength of the North Atlantic Alliance but also its political cohesion and unity of purpose. We shall give such assistance as is feasible to the recently renewed effort of Western European nations to achieve a greater measure of integration, such as in the field of peaceful uses of atomic energy. In the Near East we shall spare no effort in seeking to promote a fair solution of the tragic dispute between the Arab States and Israel, all of whom we want as our friends. The United States is ready to do its part to assure enduring peace in that area. We hope that both sides will make the contributions necessary to achieve that purpose. In Latin America, we shall continue to cooperate vigorously in trade and other measures designed to assist economic progress in the area. Strong economic ties are an essential element in our free world partnership. Increasing trade and investment help all of us prosper together. Gratifying progress has been made in this direction, most recently by the three-year extension of our trade agreements legislation. I most earnestly request that the Congress approve our membership in the Organization for Trade Cooperation, which would assist the carrying out of the General Agreement on Tariffs and Trade to which we have been a party since 1948. Our membership in the OTC will provide the most effective and expeditious means for removing discriminations and restrictions against American exports and in making our trade agreements truly reciprocal. United States membership in the Organization will evidence our continuing desire to cooperate in promoting an expanded trade among the free nations. Thus the Organization, as proposed, is admirably suited to our own interests and to those of like-minded nations in working for steady expansion of trade and closer economic cooperation. Being strictly an administrative entity, the Organization for Trade Cooperation cannot, of course, alter the control by Congress of the tariff, import, and customs policies of the United States. We need to encourage investment overseas by avoiding unfair tax duplications, and to foster foreign trade by further simplification and improvement of our customs legislation. We must sustain and fortify our Mutual Security Program. Because the conditions of poverty and unrest in less developed areas make their people a special target of international communism, there is a need to help them achieve the economic growth and stability necessary to preserve their independence against communist threats and enticements. In order that our friends may better achieve the greater strength that is our common goal, they need assurance of continuity in economic assistance for development projects and programs which we approve and which require a period of years for planning and completion. Accordingly, I ask Congress to grant limited authority to make longer-term commitments for assistance to such projects, to be fulfilled from appropriations to be made in future fiscal years. These various steps will powerfully strengthen the economic foundation of our foreign policy. Together with constructive action abroad, they will maintain the present momentum toward general economic progress and vitality of the free world. In all things, change is the inexorable law of life. In much of the world the ferment of change is working strongly; but grave injustices are still uncorrected. We must not, by any sanction of ours, help to perpetuate these wrongs. I have particularly in mind the oppressive division of the German people, the bondage of millions elsewhere, and the exclusion of Japan from United Nations membership. We shall keep these injustices in the forefront of human consciousness and seek to maintain the pressure of world opinion to fight these vast wrongs in the interest both of justice and secure peace. Injustice thrives on ignorance. Because an understanding of the truth about America is one of our most powerful forces, I am recommending a substantial increase in budgetary support of the United States Information Agency. The sum of our international effort should be this: the waging of peace, with as much resourcefulness, with as great a sense of dedication and urgency, as we have ever mustered in defense of our country in time of war. In this effort, our weapon is not force. Our weapons are the principles and ideas embodied in our historic traditions, applied with the same vigor that in the past made America a living promise of freedom for all mankind. To accomplish these vital tasks, all of us should be concerned with the strength, effectiveness and morale .of our State Department and our Foreign Service. Another guide in the preparation of the Administration's program is: THE CONSTANT IMPROVEMENT OF OUR NATIONAL SECURITY Because peace is the keystone of our national policy, our defense program emphasizes an effective flexible type of power calculated to deter or repulse any aggression and to preserve the peace. Short of war, we have never had military strength better adapted to our needs with improved readiness for emergency use. The maintenance of this strong military capability for the indefinite future will continue to call for a large share of our national budget. Our military programs must meet the needs of today. To build less would expose the nation to aggression. To build excessively, under the influence of fear, could defeat our purposes and impair or destroy the very freedom and economic system our military defenses are designed to protect. We have improved the effectiveness and combat readiness of our forces by developing and making operational new weapons and by integrating the latest scientific developments, including new atomic weapons, into our military plans. We continue to push the production of the most modern military aircraft. The development of long-range missiles has been on an accelerated basis for some time. We are moving as rapidly as practicable toward nuclear-powered aircraft and ships. Combat capability, especially in terms of firepower, has been substantially increased. We have made the adjustments in personnel permitted by the cessation of the Korean War, the buildup of our allies and the introduction of new weapons. The services are all planning realistically on a long-term basis. To strengthen our continental defenses the United States and Canada, in the closest cooperation, have substantially augmented early warning networks. Great progress is being made in extending surveillance of the Arctic, the Atlantic and the Pacific approaches to North America. In the last analysis our real strength lies in the caliber of the men and women in our Armed Forces, active and Reserve. Much has been done to attract and hold capable military personnel, but more needs to be done. This year, I renew my request of last year for legislation to provide proper medical care for military dependents and a more equitable survivors' benefit program. The Administration will prepare additional recommendations designed to achieve the same objectives, including career incentives for medical and dental officers and nurses, and increases in the proportion of regular officers. Closely related to the mission of the Defense Department is the task of the Federal Civil Defense Administration. A particular point of relationship arises from the fact that the key to civil defense is the expanded continental defense program, including the distant early warning system. Our Federal civil defense authorities have made progress in their program, and now comprehensive studies are being conducted jointly by the Federal Civil Defense Administration, the States, and critical target cities to determine the best procedures that can be adopted in case of an atomic attack. We must strengthen Federal assistance to the States and cities in devising the most effective common defense. We have a broad and diversified mobilization base. We have the facilities, materials, skills and knowledge rapidly to expand the production of things we need for our defense whenever they are required. But mobilization base requirements change with changing technology and strategy. We must maintain flexibility to meet new requirements. I am requesting, therefore, that the Congress once again extend the Defense Production Act. Of great importance to our nation's security is a continuing alertness to internal subversive activity within or without our government. This Administration will not relax its efforts to deal forthrightly and vigorously in protection of this government and its citizens against subversion, at the same time fully protecting the constitutional rights of all citizens. A third objective of the Administration is: FISCAL INTEGRITY A public office is, indeed, a public trust. None of its aspects is more demanding than the proper management of the public finances. I refer now not only to the indispensable virtues of plain honesty and trustworthiness but also to the prudent, effective and conscientious use of tax money. I refer also to the attitude of mind that makes efficient and economical service to the people a watchword in our government. Over the long term, a balanced budget is a sure index to thrifty management--in a home, in a business or in the Federal Government. When achievement of a balanced budget is for long put off in a business or home, bankruptcy is the result. But in similar circumstances a government resorts to inflation of the money supply. This inevitably results in depreciation of the value of the money, and an increase in the cost of living. Every investment in personal security is threatened by this process of inflation, and the real values of the people's savings, whether in the form of insurance, bonds, pension and retirement funds or savings accounts are thereby shriveled. We have made long strides these past three years in bringing our Federal finances under control. The deficit for fiscal year 1953 was almost 9-1/2 billion dollars. Larger deficits seemed certain--deficits which would have depreciated the value of the dollar and pushed the cost of living still higher. But government waste and extravagance were searched out. Nonessential activities were dropped. Government expenses were carefully scrutinized. Total spending was cut by 14 billion dollars below the amount planned by the previous Administration for the fiscal year 1954. This made possible--and it was appropriate in the existing circumstances of transition to a peacetime economy--the largest tax cut in any year in our history. Almost 7-½ billion dollars were released and every taxpayer in the country benefited. Almost two-thirds of the savings went directly to individuals. This tax cut also helped to build up the economy, to make jobs in industry and to increase the production .of the many things desired to improve the scale of living for the great majority of Americans. The strong expansion of the economy, coupled with a constant care for efficiency in government operations and an alert guard against waste and duplication, has brought us to a prospective balance between income and expenditure. This is being done while we continue to strengthen our military security. I expect the budget to be in balance during the fiscal year ending June 30, 1956. I shall propose a balanced budget for the next fiscal year ending June 30, 1957. But the balance we are seeking cannot be accomplished without the continuing every-day effort of the Executive and Legislative Branches to keep expenditures under control. It will also be necessary to continue all of the present excise taxes without any reduction and the corporation income taxes at their present rates for another year beyond next April 1st. It is unquestionably true that our present tax level is very burdensome and, in the interest of long term and continuous economic growth, should be reduced when we prudently can. It is essential, in the sound management of the Government's finances, that we be mindful of our enormous national debt and of the obligation we have toward future Americans to reduce that debt whenever we can appropriately do so. Under conditions of high peacetime prosperity, such as now exist, we can never justify going further into debt to give ourselves a tax cut at the expense of our children. So, in the present state of our financial affairs, I earnestly believe that a tax cut can be deemed justifiable only when it will not unbalance the budget, a budget which makes provision for some reduction, even though modest, in our national debt. In this way we can best maintain fiscal integrity. A fourth aim of our program is: TO FOSTER A STRONG ECONOMY Our competitive enterprise system depends on the energy of free human beings, limited by prudent restraints in law, using free markets to plan, organize and distribute production, and spurred by the prospect of reward for successful effort. This system has developed our resources. It has marvelously expanded our productive capacity. Against the record of all other economic systems devised through the ages, this competitive system has proved the most creative user of human skills in the development of physical resources, and the richest rewarder of human effort. This is still true in this era when improved living standards and rising national requirements are accompanied by swift advances in technology and rapid obsolescence in machines and methods. Typical of these are the strides made in construction of plants to produce electrical energy from atomic power and of laboratories and installations for the application of this new force in industry, agriculture and the healing arts. These developments make it imperative--to assure effective functioning of our enterprise system--that the Federal Government concern itself with certain broad areas of our economic life. Most important of these is: Agriculture Our farm people are not sharing as they should in the general prosperity. They alone of all major groups have seen their incomes decline rather than rise. They are caught between two millstones--rising production costs and declining prices. Such harm to a part of the national economy so vitally important to everyone is of great concern to us all. No other resource is so indispensable as the land that feeds and clothes us. No group is more fundamental to our national life than our farmers. In successful prosecution of the war, the nation called for the utmost effort of its farmers. Their response was superb, their contribution unsurpassed. Farmers are not now to be blamed for the mountainous, price-depressing surpluses produced in response to wartime policies and laws that were too long continued. War markets are not the markets of peacetime. Failure to recognize that basic fact by a timely adjustment of wartime legislation brought its inevitable result in peacetime--surpluses, lower prices and lower incomes for our farmers. The dimensions of government responsibility are as broad and complex as the farm problem itself. We are here concerned not only with our essential continuing supplies of food and fiber, but also with a way of life. Both are indispensable to the well-being and strength of the nation. Consideration of these matters must be above and beyond politics. Our national farm policy, so vital to the welfare of farm people and all of us, must not become a field for political warfare. Too much is at stake. Our farm people expect of us, who have responsibility for their government, understanding of their problems and the will to help solve them. Our objective must be to help bring production into balance with existing and new markets, at prices that yield farmers a return for their work in line with what other Americans get. To reach this goal, deep-seated problems must be subjected to a stepped-up attack. There is no single easy solution. Rather, there must be a many-sided assault on the stubborn problems of surpluses, prices, costs, and markets; and a steady, persistent, imaginative advance in the relationship between farmers and their government. In a few days, by special message, I shall lay before the Congress my detailed recommendations for new steps that should be taken promptly to speed the transition in agriculture and thus assist our farmers to achieve their fair share of the national income. Basic to this program will be a new attack on the surplus problem-for even the best-conceived farm program cannot work under a multi-billion dollar weight of accumulated stocks. I shall urge authorization of a soil bank program to alleviate the problem of diverted acres and an overexpanded agricultural plant. This will include an acreage reserve to reduce current and accumulated surpluses of crops in most serious difficulty, and a conservation reserve to achieve other needed adjustments in the use of agricultural resources. I shall urge measures to strengthen our surplus disposal activities. I shall propose measures to strengthen individual commodity programs, to remove controls where possible, to reduce carryovers, and to stop further accumulations of surpluses. I shall ask the Congress to provide substantial new funds for an expanded drive on the research front, to develop new markets, new crops, and new uses. The Rural Development Program to better the lot of low-income farm families deserves full Congressional support. The Great Plains Program must go forward vigorously. Advances on these and other fronts will pull down the pricedepressing surpluses and raise farm income. In this time of testing in agriculture, we should all together, regardless of party, carry forward resolutely with a sound and forward looking program on which farm people may confidently depend, now and for years to come. I shall briefly mention four other subjects directly related to the well-being of the economy, preliminary to their fuller discussion in the Economic Report and later communications. Resources Conservation I wish to re-emphasize the critical importance of the wise use and conservation of our great natural resources of land, forests, minerals and water and their long-range development consistent with our agricultural policy. Water in particular now plays an increasing role in industrial processes, in the irrigation of land, in electric power, as well as in domestic uses. At the same time, it has the potential of damage and disaster. A comprehensive legislative program for water conservation will be submitted to the Congress during the Session. The development of our water resources cannot be accomplished overnight. The need is such that we must make faster progress and without delay. Therefore, I strongly recommend that action be taken at this Session on such wholly Federal projects as the Colorado River Storage Project and the Fryingpan-Arkansas Project; on the John Day partnership project, and other projects which provide for cooperative action between the Federal Government and non-Federal interests; and on legislation, which makes provision for Federal participation in small projects under the primary sponsorship of agencies of State and local government. During the past year the areas of our National Parks have been expanded, and new wildlife refuges have been created. The visits of our people to the Parks have increased much more rapidly than have the facilities to care for them. The Administration will submit recommendations to provide more adequate facilities to keep abreast of the increasing interest of our people in the great outdoors. Disaster Assistance A modern community is a complex combination of skills, specialized buildings, machines, communications and homes. Most importantly, it involves human lives. Disaster in many forms--by flood, frost, high winds, for instance--can destroy on a massive scale in a few hours the labor of many years. Through the past three years the Administration has repeatedly moved into action wherever disaster struck. The extent of State participation in relief activities, however, has been far from uniform and, in many cases, has been either inadequate or nonexistent. Disaster assistance legislation requires overhauling and an experimental program of flood-damage indemnities should be undertaken. The Administration will make detailed recommendations on these subjects. Area Redevelopment We must help deal with the pockets of chronic unemployment that here and there mar the nation's general industrial prosperity. Economic changes in recent years have been often so rapid and far-reaching that areas committed to a single local resource or industrial activity have found themselves temporarily deprived of their markets and their livelihood. Such conditions mean severe hardship for thousands of people as the slow process of adaptation to new circumstances goes on. This process can be speeded up. Last year I authorized a major study of the problem to find additional steps to supplement existing programs for the redevelopment of areas of chronic unemployment. Recommendations will be submitted, designed to supplement, with Federal technical and loan assistance local efforts to get on with this vital job. Improving such communities must, of course, remain the primary responsibility of the people living there and of their States. But a soundly conceived Federal partnership program can be of real assistance to them in their efforts. Highway Legislation. Legislation to provide a modern, interstate highway system is even more urgent this year than last, for 12 months have now passed in which we have fallen further behind in road construction needed for the personal safety, the general prosperity, the national security of the American people. During the year, the number of motor vehicles has increased from 58 to 61 million. During the past year over 38,000 persons lost their lives in highway accidents, while the fearful toll of injuries and property damage has gone on unabated. In my message of February 22, 1955, I urged that measures be taken to complete the vital 40,000 mile interstate system over a period of 10 years at an estimated Federal cost of approximately 25 billion dollars. No program was adopted. If we are ever to solve our mounting traffic problem, the whole interstate system must be authorized as one project, to be completed approximately within the specified time. Only in this way can industry efficiently gear itself to the job ahead. Only in this way can the required planning and engineering be accomplished without the confusion and waste unavoidable a piecemeal approach. Furthermore, as I pointed out last year, the pressing nature of this problem must not lead us to solutions outside the bounds of sound fiscal management. As in the case of other pressing problems, there must be an adequate plan of financing. To continue the drastically needed improvement in other national highway systems, I recommend the continuation of the Federal Aid Highway Program. Aside from agriculture and the four subjects specifically mentioned, an integral part of our efforts to foster a strong and expanding free economy is keeping open the door of opportunity to new and small enterprises, checking monopoly, and preserving a competitive environment. In this past year the steady improvement in the economic health of small business has reinforced the vitality of our competitive economy. We shall continue to help small business concerns to obtain access to adequate financing and to competent counsel on management, production, and marketing problems. Through measures already taken, opportunities for smallbusiness participation in government procurement programs, including military procurement, are greatly improved. The effectiveness of these measures will become increasingly apparent. We shall continue to make certain that small business has a fair opportunity to compete and has an economic environment in which it may prosper. In my message last year I referred to the appointment of an advisory committee to appraise and report to me on the deficiencies as well as the effectiveness of existing Federal transportation policies. I have commended the fundamental purposes and objectives of the committee's report. I earnestly recommend that the Congress give prompt attention to the committee's proposals. Essential to a prosperous economic environment for all business, small and large--for agriculture and industry and commerce-is efficiency in Government. To that end, exhaustive studies of the entire governmental structure were made by the Commission on Intergovernmental Relations and the Commission on the Organization of the Executive Branch of the Government--the reports of these Commissions are now under intensive review and already in the process of implementation in important areas. One specific and most vital governmental function merits study and action by the Congress. As part of our program of promoting efficiency in Government and getting the fiscal situation in hand, the Post Office Department in the past three years has been overhauled. Nearly one thousand new post offices have been provided. Financial practices have been modernized, and transportation and operating methods are being constantly improved. A new wage and incentive plan for the half million postal employees has been established. Never before has the postal system handled so much mail so quickly and so economically. The Post Office Department faces two serious problems. First, much of its physical plant--post offices and other buildings-is obsolete and inadequate. Many new buildings and the modernization of present ones are essential if we are to have improved mail service. The second problem is the Department's fiscal plight. It now faces an annual deficit of one-half billion dollars. Recommendations on postal facilities and on additional postal revenues will be submitted to the Congress. A final consideration in our program planning is: THE RESPONSE TO HUMAN CONCERNS A fundamental belief shines forth in this Republic. We believe in the worth and dignity of the individual. We know that if we are to govern ourselves wisely--in the tradition of America--we must have the opportunity to develop our individual capacities to the utmost. To fulfill the individual's aspirations in the American way of life, good education is fundamental. Good education is the outgrowth of good homes, good communities, good churches, and good schools. Today our schools face pressing problems--problems which will not yield to swift and easy solutions, or to any single action. They will yield only to a continuing, active, formed effort by the people toward achieving better schools. This kind of effort has been spurred by the thousands of conferences held in recent months by half a million citizens and educators in all parts of the country, culminating in the White House Conference on Education. In that Conference, some two thousand delegates, broadly representative of the nation, studied together the problems of the nation's schools. They concluded that the people of the United States must make a greater effort through their local, State, and Federal Governments to improve the education of our youth. This expression from the people must now be translated into action at all levels of government. So far as the Federal share of responsibility is concerned, I urge that the Congress move promptly to enact an effective program of Federal assistance to help erase the existing deficit of school classrooms. Such a program, which should be limited to a five-year period, must operate to increase rather than decrease local and State support of schools and to give the greatest help to the States and localities with the least financial resources. Federal aid should in no way jeopardize the freedom of local school systems. There will be presented to the Congress a recommended program of Federal assistance for school construction. Such a program should be accompanied by action to increase services to the nation's schools by the Office of Education and by legislation to provide continuation of payments to school districts where Federal activities have impaired the ability of those districts to provide adequate schools. Under the 1954 Amendments to the old-age and survivors' insurance program, protection was extended to some 10 million additional workers and benefits were increased. The system now helps protect 9 out of 10 American workers and their families against loss of income in old age or on the death of the breadwinner. The system is sound. It must be kept so. In developing improvements in the system, we must give the most careful consideration to population and social trends, and to fiscal requirements. With these considerations in mind, the Administration will present its recommendations for further expansion of coverage and other steps which can be taken wisely at this time. Other needs in the area of social welfare include increased child welfare services, extension of the program of aid to dependent children, intensified attack on juvenile delinquency, and special attention to the problems of mentally retarded children. The training of more skilled workers for these fields and the quest for new knowledge through research in social welfare are essential. Similarly the problems of our aged people need our attention. The nation has made dramatic progress in conquering disease--progress of profound human significance which can be greatly accelerated by an intensified effort in medical research. A well-supported, well-balanced program of research, including basic research, can open new frontiers of knowledge, prevent and relieve suffering, and prolong life. Accordingly I shall recommend a substantial increase in Federal funds for the support of such a program. As an integral part of this effort, I shall recommend a new plan to aid construction of non-Federal medical research and teaching facilities and to help provide more adequate support for the training of medical research manpower. Finally, we must aid in cushioning the heavy and rising costs of illness and hospitalization to individuals and families. Provision should be made, by Federal reinsurance or otherwise, to foster extension of voluntary health insurance coverage to many more persons, especially older persons and those in rural areas. Plans should be evolved to improve protection against the costs of prolonged or severe illness. These measures will help reduce the dollar barrier between many Americans and the benefits of modern medical care. The Administration health program will be submitted to the Congress in detail. The response of government to human concerns embraces, of course, other measures of broad public interest, and of special interest to our working men and women. The need still exists for improvement of the Labor Management Relations Act. The recommendations I submitted to the Congress last year take into account not only the interests of labor and management but also the public welfare. The needed amendments should be enacted without further delay. We must also carry forward the job of improving the wagehour law. Last year I requested the Congress to broaden the coverage of the minimum wage. I repeat that recommendation, and I pledge the full resources of the Executive Branch to assist the Congress in finding ways to attain this goal. Moreover, as requested last year, legislation should be passed to clarify and strengthen the eight-hour laws for the benefit of workers who are subject to Federal wage standards on Federal and Federally assisted construction and other public works. The Administration will shortly propose legislation to assure adequate disclosure of the financial affairs of each employee pension and welfare plan and to afford substantial protection to their beneficiaries in accordance with the objectives outlined in my message of January 11, 1954. Occupational safety still demands attention, as I pointed out last year, and legislation to improve the Longshoremen's and Harbor Workers' Compensation Act is still needed. The improvement of the District of Columbia Unemployment Insurance Law and legislation to provide employees in the District with non-occupational disability insurance are no less necessary now than 12 months ago. Legislation to apply the principle of equal pay for equal work without discrimination because of sex is a matter of simple justice. I earnestly urge the Congress to move swiftly to implement these needed labor measures. In the field of human needs, we must carry forward the housing program, which is contributing so greatly to the well-being of our people and the prosperity of our economy. Home ownership is now advanced to the point where almost three of every five families in our cities, towns, and suburbs own the houses they live in. For the housing program, most of the legislative authority already exists. However, a firm program of public housing is essential until the private building industry has found ways to provide more adequate housing for low-income families. The Administration will propose authority to contract for 35 thousand additional public housing units in each of the next 2 fiscal years for communities which will participate in an integrated attack on slums and blight. To meet the needs of the growing number of older people, several amendments to the National Housing Act will be proposed to assist the private homebuilding industry as well as charitable and non-profit organizations. With so large a number of the American people desiring to modernize and improve existing dwellings, I recommend that the Title 1 program for permanent improvements in the home be liberalized. I recommend increases in the general FHA mortgage insurance authority; the extension of the FHA military housing program; an increase in the authorization for Urban Planning grants; in the special assistance authority of the Federal National Mortgage Association; and continued support of the college housing program in a way that will not discourage private capital from helping to meet the needs of our colleges. The legislation I have recommended for workers in private industry should be accompanied by a parallel effort for the welfare of Government employees. We have accomplished much in this field, including a contributory life insurance program; equitable pay increases and a fringe benefits program, covering many needed personnel policy changes, from improved premium pay to a meaningful incentive award program. Additional personnel management legislation is needed in this Session. As I stated last year, an executive pay increase is essential to efficient governmental management. Such an increase, together with needed adjustments in the pay for the top career positions, is also necessary to the equitable completion of the Federal pay program initiated last year. Other legislation will be proposed, including legislation for prepaid group health insurance for employees and their dependents and to effect major improvements in the Civil Service retirement system. All of us share a continuing concern for those who have served this nation in the Armed Forces. The Commission on Veterans Pensions is at this time conducting a study of the entire field of veterans' benefits and will soon submit proposed improvements. We are proud of the progress our people have made in the field of civil rights. In Executive Branch operations throughout the nation, elimination of discrimination and segregation is all but completed. Progress is also being made among contractors engaged in furnishing Government services and requirements. Every citizen now has the opportunity to fit himself for and to hold a position of responsibility in the service of his country. In the District of Columbia, through the voluntary cooperation of the people, discrimination and segregation are disappearing from hotels, theaters, restaurants and other facilities. It is disturbing that in some localities allegations persist that Negro citizens are being deprived of their right to vote and are likewise being subjected to unwarranted economic pressures. I recommend that the substance of these charges be thoroughly examined by a Bipartisan Commission created by the Congress. It is hoped that such a commission will be established promptly so that it may arrive at findings which can receive early consideration. The stature of our leadership in the free world has increased through the past three years because we have made more progress than ever before in a similar period to assure our citizens equality in justice, in opportunity and in civil rights. We must expand this effort on every front. We must strive to have every person judged and measured by what he is, rather than by his color, race or religion. There will soon be recommended to the Congress a program further to advance the efforts of the Government, within the area of Federal responsibility, to accomplish these objectives. One particular challenge confronts us. In the Hawaiian Islands, East meets West. To the Islands, Asia and Europe and the Western Hemisphere, all the continents, have contributed their peoples and their cultures to display a unique example of a community that is a successful laboratory in human brotherhood. Statehood, supported by the repeatedly expressed desire of the Islands' people and by our traditions, would be a shining example of the American way to the entire earth. Consequently, I urgently request this Congress to grant statehood for Hawaii. Also, in harmony with the provisions I last year communicated to the Senate and House Committees on Interior and Insular Affairs, I trust that progress toward statehood for Alaska can be made in this Session. Progress is constant toward full integration of our Indian citizens into normal community life. During the past two years the Administration has provided school facilities for thousands of Indian children previously denied this opportunity. We must continue to meet the needs of increased numbers of Indian children. Provision should also be made for the education of adult Indians whose schooling in earlier years was neglected. In keeping with our responsibility of world leadership and in our own self interest, I again point out to the Congress the urgent need for revision of the immigration and nationality laws. Our nation has always welcomed immigrants to our shores. The wisdom of such a policy is clearly shown by the fact that America has been built by immigrants and the descendants of immigrants. That policy must be continued realistically with present day conditions in mind. I recommend that the number of persons admitted to this country annually be based not on the 1920 census but on the latest, the 1950 census. Provision should be made to allow for greater flexibility in the use of quotas so if one country does not use its share, the vacancies may be made available for the use of qualified individuals from other countries. The law should be amended to permit the Secretary of State and the Attorney General to waive the requirements of fingerprinting on a reciprocal basis for persons coming to this country for temporary visits. This and other changes in the law are long overdue and should be taken care of promptly. Detailed recommendations for revision of the immigration laws will be submitted to the Congress. I am happy to report substantial progress in the flow of immigrants under the Refugee Relief Act of 1953; however, I again request this Congress to approve without further delay the urgently needed amendments to that act which I submitted in the last Session. Because of the high prosperity in Germany and Austria, the number of immigrants from those countries will be reduced. This will make available thousands of unfilled openings which I recommend be distributed to Greece and Italy and to escapees from behind the Iron Curtain. Once again I ask the Congress to join with me in demonstrating our belief in the right of suffrage. I renew my request that the principle of self-government be extended and the right of suffrage granted to the citizens of the District of Columbia. To conclude: the vista before us is bright. The march of science, the expanding economy, the advance in collective security toward a just peace--in this threefold movement our people are creating new standards by which the future of the Republic may be judged. Progress, however, will be realized only as it is more than matched by a continuing growth in the spiritual strength of the nation. Our dedication to moral values must be complete in our dealings abroad and in our relationships among ourselves. We have single-minded devotion to the common good of America. Never must we forget that this means the well-being, the prosperity, the security of all Americans in every walk of life. To the attainment of these objectives, I pledge full energies of the Administration, as in the Session ahead, it works on a program for submission to you, the Congress of the United States. DWIGHT D. EISENHOWER
read before a joint session by a clerk of the house of representatives to the congress of the united states the opening of this new year must arouse in us all grateful thanks to a kind providence whose protection has been ever present and whose bounty has been manifold and abundant the state of the union today demonstrates what can be accomplished under god by a free people by their vision their understanding of national problems their initiative their their capacity for work and by their willingness to sacrifice whenever sacrifice is needed in the past three years responding to what our people want their government to do the congress and the executive have done much in building a stronger better america there has been broad progress in fostering the energies of our people in providing greater opportunity for the satisfaction of their need s and in fulfilling their demands for the strength and security of the republic our country is at peace our security posture commands respect a spiritual vigor marks our national life our economy approaching the 400 billion dollar mark is at an unparalleled level of prosperity the national income is more widely and fairly distributed than ever before the number of americans at work has reached an high as a people we are achieving ever higher standards of living earning more producing more consuming more building more and investing more than ever before virtually all sectors of our society are sharing in these good times our farm families if we act wisely imaginatively and promptly to strengthen our present farm programs can also look forward to sharing equitably in the prosperity they have helped to create war in korea ended two and a half years ago the collective security system has been powerfully strengthened our defenses have been reinforced at sharply reduced costs programs to expand world trade and to harness the atom for the betterment of mankind have been carried forward our economy has been freed from governmental wage and price controls inflation has been halted the cost of living stabilized government spending has been cut by more than ten billion dollars nearly three hundred thousand positions have been eliminated from the federal payroll taxes have been substantially reduced a balanced budget is in prospect social security has been extended to ten million more americans and unemployment insurance to four million more unprecedented advances in civil rights have been made the and problems of agriculture have been forthrightly attacked this record of progress has been accomplished with a self imposed caution against unnecessary and unwise interference in the private affairs of our people of their communities and of the several states if we of the executive and legislative branches keeping this caution ever in mind address ourselves to the business of the year before us and to the unfinished business of last year with resolution the outlook is bright with promise many measures of great national importance recommended last year to the congress still demand immediate attention legislation for school and highway construction health and immigration legislation water resources legislation legislation to complete the implementation of our foreign economic policy such labor legislation as amendments of the relations act extension of the fair labor standards act to additional groups not now covered and occupational safety legislation and legislation for construction of an exhibit vessel many new items of business likewise require our that will further promote the release of the energies of our people that will broaden opportunity for all of them that will advance the republic in its leadership toward a just peace measures in short that are essential to the building of an everstronger america every political and economic guide supports a valid confidence that wise effort will be rewarded by an even more plentiful harvest of human benefit than we now enjoy our resources are too many our principles too dynamic our purposes too worthy and the issues at stake too immense for us to entertain doubt or fear but our responsibilities require that we approach this year business with a sober humility a heedless pride in our present strength and position would blind us to the facts of the past to the pitfalls of the future we must walk ever in the knowledge that we are enriched by a heritage earned in the labor and sacrifice of our forebears that for our children children we are trustees of a great republic and a political system that we prosper as a cooperating member of the family of nations in this light the administration has continued work on its program for the republic begun three years ago because the vast spread of national and human interests is involved within it i shall not in this message attempt its detailed delineation instead from time to time during this session there will be submitted to the congress specific recommendations within specific fields in the comprehensive survey required for their preparation the administration is guided by enduring objectives the first is the discharge of our world responsibility our world policy and our actions are dedicated to the achievement of peace with justice for all nations with this purpose we move in a wide variety of ways and through many agencies to remove the pall of fear to strengthen the ties with our partners and to improve the cooperative cohesion of the free world to reduce the burden of armaments and to stimulate and inspire action among all nations for a world of justice and prosperity and peace these national objectives are fully supported by both our political parties in the past year our search for a more stable and just peace has taken varied forms among the most important were the two conferences at geneva in july and in the fall of last year we explored the possibilities of agreement on critical issues that jeopardize the peace the july meeting of heads of government held out promise to the world of moderation in the bitterness of word and action which tends to generate conflict and war all were in agreement that a nuclear war would be an intolerable disaster which must not be permitted to occur but in october when the foreign ministers met again the results demonstrated conclusively that the soviet leaders are not yet willing to create the indispensable conditions for a secure and lasting peace nevertheless it is clear that the conflict between international communism and freedom has taken on a new complexion we know the communist leaders have often practiced the tactics of retreat and zigzag we know that soviet and chinese communism still poses a serious threat to the free world and in the middle east recent soviet moves are hardly compatible with the reduction of international tension yet communist tactics against the free nations have shifted in emphasis from reliance on violence and the threat of violence to reliance on division enticement and duplicity we must be well prepared to meet the current tactics which pose a dangerous though less obvious threat at the same time our policy must be dynamic as well as flexible designed primarily to forward the achievement of our own objectives rather than to meet each shift and change on the communist front we must act in the firm assurance that the fruits of freedom are more attractive and desirable to mankind in the pursuit of happiness than the record of communism in the face of communist military power we must of course continue to maintain an effective system of collective security this involves two things a system which gives clear warning that armed aggression will be met by joint action of the free nations and deterrent military power to make that warning effective moreover the awesome power of the atom must be made to serve as a guardian of the free community and of the peace in the last year the free world has seen major gains for the system of collective security the accession to the north atlantic treaty organization and western european union of the sovereign federal german republic the developing cooperation under the southeast asia collective defense treaty and the formation in the middle east of the baghdad pact among turkey iraq iran pakistan and the united kingdom in our own hemisphere the system has continued to show its vitality in maintaining peace and a common approach to world problems we now have security pacts with more than 40 other nations in the pursuit of our national purposes we have been steadfast in our support of the united nations now entering its second decade with a wider membership and influence and usefulness in the release of our fifteen fliers from communist china an essential prelude was the world opinion mobilized by the general assembly which condemned their imprisonment and demanded their liberation the successful atomic energy conference held in geneva under united nations auspices and our atoms for peace program have been practical steps toward the use of this new energy source our sponsorship of such use has benefited our relations with other countries active negotiations are now in progress to create an international agency to foster peaceful uses of atomic energy during the past year the crucial problem of disarmament has moved to the forefront of practical political endeavor at geneva i declared the readiness of the united states to exchange blueprints of the military establishments of our nation and the ussr to be confirmed by reciprocal aerial reconnaissance by this means i felt mutual suspicions could be allayed and an atmosphere developed in which negotiations looking toward limitation of arms would have improved chances of success in the united nations subcommittee on disarmament last fall this proposal was explored and the united states also declared itself willing to include reciprocal ground inspection of key points by the overwhelming vote of 56 to 7 the united nations on december 16 endorsed these proposals and gave them a top priority thereby the issue is placed squarely before the bar of world opinion we shall persevere in seeking a general reduction of armaments under effective inspection and control which are essential safeguards to ensure reciprocity and protect the security of all in the coming year much remains to be done while maintaining our military deterrent we must intensify our efforts to achieve a just peace in asia we shall continue to give help to nations struggling to maintain their freedom against the threat of communist coercion or subversion in europe we shall endeavor to increase not only the military strength of the north atlantic alliance but also its political cohesion and unity of purpose we shall give such assistance as is feasible to the recently renewed effort of western european nations to achieve a greater measure of integration such as in the field of peaceful uses of atomic energy in the near east we shall spare no effort in seeking to promote a fair solution of the tragic dispute between the arab states and israel all of whom we want as our friends the united states is ready to do its part to assure enduring peace in that area we hope that both sides will make the contributions necessary to achieve that purpose in latin america we shall continue to cooperate vigorously in trade and other measures designed to assist economic progress in the area strong economic ties are an essential element in our free world partnership increasing trade and investment help all of us prosper together gratifying progress has been made in this direction most recently by the extension of our trade agreements legislation i most earnestly request that the congress approve our membership in the organization for trade cooperation which would assist the carrying out of the general agreement on tariffs and trade to which we have been a party since 1948 our membership in the otc will provide the most effective and expeditious means for removing discriminations and restrictions against american exports and in making our trade agreements truly reciprocal united states membership in the organization will evidence our continuing desire to cooperate in promoting an expanded trade among the free nations thus the organization as proposed is admirably suited to our own interests and to those of nations in working for steady expansion of trade and closer economic cooperation being strictly an administrative entity the organization for trade cooperation can not of course alter the control by congress of the tariff import and customs policies of the united states we need to encourage investment overseas by avoiding unfair tax duplications and to foster foreign trade by further simplification and improvement of our customs legislation we must sustain and fortify our mutual security program because the conditions of poverty and unrest in less developed areas make their people a special target of international communism there is a need to help them achieve the economic growth and stability necessary to preserve their independence against communist threats and enticements in order that our friends may better achieve the greater strength that is our common goal they need assurance of continuity in economic assistance for development projects and programs which we approve and which require a period of years for planning and completion accordingly i ask congress to grant limited authority to make commitments for assistance to such projects to be fulfilled from appropriations to be made in future fiscal years these various steps will powerfully strengthen the economic foundation of our foreign policy together with constructive action abroad they will maintain the present momentum toward general economic progress and vitality of the free world in all things change is the inexorable law of life in much of the world the ferment of change is working strongly but grave injustices are still uncorrected we must not by any sanction of ours help to perpetuate these wrongs i have particularly in mind the oppressive division of the german people the bondage of millions elsewhere and the exclusion of japan from united nations membership we shall keep these injustices in the forefront of human consciousness and seek to maintain the pressure of world opinion to fight these vast wrongs in the interest both of justice and secure peace injustice thrives on ignorance because an understanding of the truth about america is one of our most powerful forces i am recommending a substantial increase in budgetary support of the united states information agency the sum of our international effort should be this the waging of peace with as much resourcefulness with as great a sense of dedication and urgency as we have ever mustered in defense of our country in time of war in this effort our weapon is not force our weapons are the principles and ideas embodied in our historic traditions applied with the same vigor that in the past made america a living promise of freedom for all mankind to accomplish these vital tasks all of us should be concerned with the strength effectiveness and morale our state department and our foreign service another guide in the preparation of the administration program is the constant improvement of our national security because peace is the keystone of our national policy our defense program emphasizes an effective flexible type of power calculated to deter or repulse any aggression and to preserve the peace short of war we have never had military strength better adapted to our needs with improved readiness for emergency use the maintenance of this strong military capability for the indefinite future will continue to call for a large share of our national budget our military programs must meet the needs of today to build less would expose the nation to aggression to build excessively under the influence of fear could defeat our purposes and impair or destroy the very freedom and economic system our military defenses are designed to protect we have improved the effectiveness and combat readiness of our forces by developing and making operational new weapons and by integrating the latest scientific developments including new atomic weapons into our military plans we continue to push the production of the most modern military aircraft the development of missiles has been on an accelerated basis for some time we are moving as rapidly as practicable toward aircraft and ships combat capability especially in terms of firepower has been substantially increased we have made the adjustments in personnel permitted by the cessation of the korean war the buildup of our allies and the introduction of new weapons the services are all planning realistically on a basis to strengthen our continental defenses the united states and canada in the closest cooperation have substantially augmented early warning networks great progress is being made in extending surveillance of the arctic the atlantic and the pacific approaches to north america in the last analysis our real strength lies in the caliber of the men and women in our armed forces active and reserve much has been done to attract and hold capable military personnel but more needs to be done this year i renew my request of last year for legislation to provide proper medical care for military dependents and a more equitable survivors benefit program the administration will prepare additional recommendations designed to achieve the same objectives including career incentives for medical and dental officers and nurses and increases in the proportion of regular officers closely related to the mission of the defense department is the task of the federal civil defense administration a particular point of relationship arises from the fact that the key to civil defense is the expanded continental defense program including the distant early warning system our federal civil defense authorities have made progress in their program and now comprehensive studies are being conducted jointly by the federal civil defense administration the states and critical target cities to determine the best procedures that can be adopted in case of an atomic attack we must strengthen federal assistance to the states and cities in devising the most effective common defense we have a broad and diversified mobilization base we have the facilities materials skills and knowledge rapidly to expand the production of things we need for our defense whenever they are required but mobilization base requirements change with changing technology and strategy we must maintain flexibility to meet new requirements i am requesting therefore that the congress once again extend the defense production act of great importance to our nation security is a continuing alertness to internal subversive activity within or without our government this administration will not relax its efforts to deal forthrightly and vigorously in protection of this government and its citizens against subversion at the same time fully protecting the constitutional rights of all citizens a third objective of the administration is fiscal integrity a public office is indeed a public trust none of its aspects is more demanding than the proper management of the public finances i refer now not only to the indispensable virtues of plain honesty and trustworthiness but also to the prudent effective and conscientious use of tax money i refer also to the attitude of mind that makes efficient and economical service to the people a watchword in our government over the long term a balanced budget is a sure index to thrifty management in a home in a business or in the federal government when achievement of a balanced budget is for long put off in a business or home bankruptcy is the result but in similar circumstances a government resorts to inflation of the money supply this inevitably results in depreciation of the value of the money and an increase in the cost of living every investment in personal security is threatened by this process of inflation and the real values of the people savings whether in the form of insurance bonds pension and retirement funds or savings accounts are thereby shriveled we have made long strides these past three years in bringing our federal finances under control the deficit for fiscal year 1953 was almost billion dollars larger deficits seemed certain deficits which would have depreciated the value of the dollar and pushed the cost of living still higher but government waste and extravagance were searched out nonessential activities were dropped government expenses were carefully scrutinized total spending was cut by 14 billion dollars below the amount planned by the previous administration for the fiscal year 1954 this made possible and it was appropriate in the existing circumstances of transition to a peacetime economy the largest tax cut in any year in our history almost billion dollars were released and every taxpayer in the country benefited almost of the savings went directly to individuals this tax cut also helped to build up the economy to make jobs in industry and to increase the production the many things desired to improve the scale of living for the great majority of americans the strong expansion of the economy coupled with a constant care for efficiency in government operations and an alert guard against waste and duplication has brought us to a prospective balance between income and expenditure this is being done while we continue to strengthen our military security i expect the budget to be in balance during the fiscal year ending june 30 1956 i shall propose a balanced budget for the next fiscal year ending june 30 1957 but the balance we are seeking can not be accomplished without the continuing effort of the executive and legislative branches to keep expenditures under control it will also be necessary to continue all of the present excise taxes without any reduction and the corporation income taxes at their present rates for another year beyond next april 1st it is unquestionably true that our present tax level is very burdensome and in the interest of long term and continuous economic growth should be reduced when we prudently can it is essential in the sound management of the government finances that we be mindful of our enormous national debt and of the obligation we have toward future americans to reduce that debt whenever we can appropriately do so under conditions of high peacetime prosperity such as now exist we can never justify going further into debt to give ourselves a tax cut at the expense of our children so in the present state of our financial affairs i earnestly believe that a tax cut can be deemed justifiable only when it will not unbalance the budget a budget which makes provision for some reduction even though modest in our national debt in this way we can best maintain fiscal integrity a fourth aim of our program is to foster a strong economy our competitive enterprise system depends on the energy of free human beings limited by prudent restraints in law using free markets to plan organize and distribute production and spurred by the prospect of reward for successful effort this system has developed our resources it has marvelously expanded our productive capacity against the record of all other economic systems devised through the ages this competitive system has proved the most creative user of human skills in the development of physical resources and the richest rewarder of human effort this is still true in this era when improved living standards and rising national requirements are accompanied by swift advances in technology and rapid obsolescence in machines and methods typical of these are the strides made in construction of plants to produce electrical energy from atomic power and of laboratories and installations for the application of this new force in industry agriculture and the healing arts these developments make it imperative to assure effective functioning of our enterprise system that the federal government concern itself with certain broad areas of our economic life most important of these is agriculture our farm people are not sharing as they should in the general prosperity they alone of all major groups have seen their incomes decline rather than rise they are caught between two millstones rising production costs and declining prices such harm to a part of the national economy so vitally important to everyone is of great concern to us all no other resource is so indispensable as the land that feeds and clothes us no group is more fundamental to our national life than our farmers in successful prosecution of the war the nation called for the utmost effort of its farmers their response was superb their contribution unsurpassed farmers are not now to be blamed for the mountainous surpluses produced in response to wartime policies and laws that were too long continued war markets are not the markets of peacetime failure to recognize that basic fact by a timely adjustment of wartime legislation brought its inevitable result in peacetime surpluses lower prices and lower incomes for our farmers the dimensions of government responsibility are as broad and complex as the farm problem itself we are here concerned not only with our essential continuing supplies of food and fiber but also with a way of life both are indispensable to the and strength of the nation consideration of these matters must be above and beyond politics our national farm policy so vital to the welfare of farm people and all of us must not become a field for political warfare too much is at stake our farm people expect of us who have responsibility for their government understanding of their problems and the will to help solve them our objective must be to help bring production into balance with existing and new markets at prices that yield farmers a return for their work in line with what other americans get to reach this goal problems must be subjected to a attack there is no single easy solution rather there must be a assault on the stubborn problems of surpluses prices costs and markets and a steady persistent imaginative advance in the relationship between farmers and their government in a few days by special message i shall lay before the congress my detailed recommendations for new steps that should be taken promptly to speed the transition in agriculture and thus assist our farmers to achieve their fair share of the national income basic to this program will be a new attack on the surplus even the farm program can not work under a dollar weight of accumulated stocks i shall urge authorization of a soil bank program to alleviate the problem of diverted acres and an overexpanded agricultural plant this will include an acreage reserve to reduce current and accumulated surpluses of crops in most serious difficulty and a conservation reserve to achieve other needed adjustments in the use of agricultural resources i shall urge measures to strengthen our surplus disposal activities i shall propose measures to strengthen individual commodity programs to remove controls where possible to reduce carryovers and to stop further accumulations of surpluses i shall ask the congress to provide substantial new funds for an expanded drive on the research front to develop new markets new crops and new uses the rural development program to better the lot of farm families deserves full congressional support the great plains program must go forward vigorously advances on these and other fronts will pull down the pricedepressing surpluses and raise farm income in this time of testing in agriculture we should all together regardless of party carry forward resolutely with a sound and forward looking program on which farm people may confidently depend now and for years to come i shall briefly mention four other subjects directly related to the of the economy preliminary to their fuller discussion in the economic report and later communications resources conservation i wish to the critical importance of the wise use and conservation of our great natural resources of land forests minerals and water and their development consistent with our agricultural policy water in particular now plays an increasing role in industrial processes in the irrigation of land in electric power as well as in domestic uses at the same time it has the potential of damage and disaster a comprehensive legislative program for water conservation will be submitted to the congress during the session the development of our water resources can not be accomplished overnight the need is such that we must make faster progress and without delay therefore i strongly recommend that action be taken at this session on such wholly federal projects as the colorado river storage project and the project on the john day partnership project and other projects which provide for cooperative action between the federal government and interests and on legislation which makes provision for federal participation in small projects under the primary sponsorship of agencies of state and local government during the past year the areas of our national parks have been expanded and new wildlife refuges have been created the visits of our people to the parks have increased much more rapidly than have the facilities to care for them the administration will submit recommendations to provide more adequate facilities to keep abreast of the increasing interest of our people in the great outdoors disaster assistance a modern community is a complex combination of skills specialized buildings machines communications and homes most importantly it involves human lives disaster in many forms by flood frost high winds for instance can destroy on a massive scale in a few hours the labor of many years through the past three years the administration has repeatedly moved into action wherever disaster struck the extent of state participation in relief activities however has been far from uniform and in many cases has been either inadequate or nonexistent disaster assistance legislation requires overhauling and an experimental program of indemnities should be undertaken the administration will make detailed recommendations on these subjects area redevelopment we must help deal with the pockets of chronic unemployment that here and there mar the nation general industrial prosperity economic changes in recent years have been often so rapid and that areas committed to a single local resource or industrial activity have found themselves temporarily deprived of their markets and their livelihood such conditions mean severe hardship for thousands of people as the slow process of adaptation to new circumstances goes on this process can be speeded up last year i authorized a major study of the problem to find additional steps to supplement existing programs for the redevelopment of areas of chronic unemployment recommendations will be submitted designed to supplement with federal technical and loan assistance local efforts to get on with this vital job improving such communities must of course remain the primary responsibility of the people living there and of their states but a soundly conceived federal partnership program can be of real assistance to them in their efforts highway legislation legislation to provide a modern interstate highway system is even more urgent this year than last for 12 months have now passed in which we have fallen further behind in road construction needed for the personal safety the general prosperity the national security of the american people during the year the number of motor vehicles has increased from 58 to 61 million during the past year over persons lost their lives in highway accidents while the fearful toll of injuries and property damage has gone on unabated in my message of february 22 1955 i urged that measures be taken to complete the vital mile interstate system over a period of 10 years at an estimated federal cost of approximately 25 billion dollars no program was adopted if we are ever to solve our mounting traffic problem the whole interstate system must be authorized as one project to be completed approximately within the specified time only in this way can industry efficiently gear itself to the job ahead only in this way can the required planning and engineering be accomplished without the confusion and waste unavoidable a piecemeal approach furthermore as i pointed out last year the pressing nature of this problem must not lead us to solutions outside the bounds of sound fiscal management as in the case of other pressing problems there must be an adequate plan of financing to continue the drastically needed improvement in other national highway systems i recommend the continuation of the federal aid highway program aside from agriculture and the four subjects specifically mentioned an integral part of our efforts to foster a strong and expanding free economy is keeping open the door of opportunity to new and small enterprises checking monopoly and preserving a competitive environment in this past year the steady improvement in the economic health of small business has reinforced the vitality of our competitive economy we shall continue to help small business concerns to obtain access to adequate financing and to competent counsel on management production and marketing problems through measures already taken opportunities for smallbusiness participation in government procurement programs including military procurement are greatly improved the effectiveness of these measures will become increasingly apparent we shall continue to make certain that small business has a fair opportunity to compete and has an economic environment in which it may prosper in my message last year i referred to the appointment of an advisory committee to appraise and report to me on the deficiencies as well as the effectiveness of existing federal transportation policies i have commended the fundamental purposes and objectives of the committee report i earnestly recommend that the congress give prompt attention to the committee proposals essential to a prosperous economic environment for all business small and large for agriculture and industry and efficiency in government to that end exhaustive studies of the entire governmental structure were made by the commission on intergovernmental relations and the commission on the organization of the executive branch of the government the reports of these commissions are now under intensive review and already in the process of implementation in important areas one specific and most vital governmental function merits study and action by the congress as part of our program of promoting efficiency in government and getting the fiscal situation in hand the post office department in the past three years has been overhauled nearly one thousand new post offices have been provided financial practices have been modernized and transportation and operating methods are being constantly improved a new wage and incentive plan for the half million postal employees has been established never before has the postal system handled so much mail so quickly and so economically the post office department faces two serious problems first much of its physical plant post offices and other obsolete and inadequate many new buildings and the modernization of present ones are essential if we are to have improved mail service the second problem is the department fiscal plight it now faces an annual deficit of billion dollars recommendations on postal facilities and on additional postal revenues will be submitted to the congress a final consideration in our program planning is the response to human concerns a fundamental belief shines forth in this republic we believe in the worth and dignity of the individual we know that if we are to govern ourselves wisely in the tradition of america we must have the opportunity to develop our individual capacities to the utmost to fulfill the individual aspirations in the american way of life good education is fundamental good education is the outgrowth of good homes good communities good churches and good schools today our schools face pressing problems problems which will not yield to swift and easy solutions or to any single action they will yield only to a continuing active formed effort by the people toward achieving better schools this kind of effort has been spurred by the thousands of conferences held in recent months by half a million citizens and educators in all parts of the country culminating in the white house conference on education in that conference some two thousand delegates broadly representative of the nation studied together the problems of the nation schools they concluded that the people of the united states must make a greater effort through their local state and federal governments to improve the education of our youth this expression from the people must now be translated into action at all levels of government so far as the federal share of responsibility is concerned i urge that the congress move promptly to enact an effective program of federal assistance to help erase the existing deficit of school classrooms such a program which should be limited to a period must operate to increase rather than decrease local and state support of schools and to give the greatest help to the states and localities with the least financial resources federal aid should in no way jeopardize the freedom of local school systems there will be presented to the congress a recommended program of federal assistance for school construction such a program should be accompanied by action to increase services to the nation schools by the office of education and by legislation to provide continuation of payments to school districts where federal activities have impaired the ability of those districts to provide adequate schools under the 1954 amendments to the and survivors insurance program protection was extended to some 10 million additional workers and benefits were increased the system now helps protect 9 out of 10 american workers and their families against loss of income in old age or on the death of the breadwinner the system is sound it must be kept so in developing improvements in the system we must give the most careful consideration to population and social trends and to fiscal requirements with these considerations in mind the administration will present its recommendations for further expansion of coverage and other steps which can be taken wisely at this time other needs in the area of social welfare include increased child welfare services extension of the program of aid to dependent children intensified attack on juvenile delinquency and special attention to the problems of mentally retarded children the training of more skilled workers for these fields and the quest for new knowledge through research in social welfare are essential similarly the problems of our aged people need our attention the nation has made dramatic progress in conquering disease progress of profound human significance which can be greatly accelerated by an intensified effort in medical research a program of research including basic research can open new frontiers of knowledge prevent and relieve suffering and prolong life accordingly i shall recommend a substantial increase in federal funds for the support of such a program as an integral part of this effort i shall recommend a new plan to aid construction of medical research and teaching facilities and to help provide more adequate support for the training of medical research manpower finally we must aid in cushioning the heavy and rising costs of illness and hospitalization to individuals and families provision should be made by federal reinsurance or otherwise to foster extension of voluntary health insurance coverage to many more persons especially older persons and those in rural areas plans should be evolved to improve protection against the costs of prolonged or severe illness these measures will help reduce the dollar barrier between many americans and the benefits of modern medical care the administration health program will be submitted to the congress in detail the response of government to human concerns embraces of course other measures of broad public interest and of special interest to our working men and women the need still exists for improvement of the labor management relations act the recommendations i submitted to the congress last year take into account not only the interests of labor and management but also the public welfare the needed amendments should be enacted without further delay we must also carry forward the job of improving the wagehour law last year i requested the congress to broaden the coverage of the minimum wage i repeat that recommendation and i pledge the full resources of the executive branch to assist the congress in finding ways to attain this goal moreover as requested last year legislation should be passed to clarify and strengthen the laws for the benefit of workers who are subject to federal wage standards on federal and federally assisted construction and other public works the administration will shortly propose legislation to assure adequate disclosure of the financial affairs of each employee pension and welfare plan and to afford substantial protection to their beneficiaries in accordance with the objectives outlined in my message of january 11 1954 occupational safety still demands attention as i pointed out last year and legislation to improve the longshoremen and harbor workers compensation act is still needed the improvement of the district of columbia unemployment insurance law and legislation to provide employees in the district with disability insurance are no less necessary now than 12 months ago legislation to apply the principle of equal pay for equal work without discrimination because of sex is a matter of simple justice i earnestly urge the congress to move swiftly to implement these needed labor measures in the field of human needs we must carry forward the housing program which is contributing so greatly to the of our people and the prosperity of our economy home ownership is now advanced to the point where almost three of every five families in our cities towns and suburbs own the houses they live in for the housing program most of the legislative authority already exists however a firm program of public housing is essential until the private building industry has found ways to provide more adequate housing for families the administration will propose authority to contract for 35 thousand additional public housing units in each of the next 2 fiscal years for communities which will participate in an integrated attack on slums and blight to meet the needs of the growing number of older people several amendments to the national housing act will be proposed to assist the private homebuilding industry as well as charitable and organizations with so large a number of the american people desiring to modernize and improve existing dwellings i recommend that the title 1 program for permanent improvements in the home be liberalized i recommend increases in the general fha mortgage insurance authority the extension of the fha military housing program an increase in the authorization for urban planning grants in the special assistance authority of the federal national mortgage association and continued support of the college housing program in a way that will not discourage private capital from helping to meet the needs of our colleges the legislation i have recommended for workers in private industry should be accompanied by a parallel effort for the welfare of government employees we have accomplished much in this field including a contributory life insurance program equitable pay increases and a fringe benefits program covering many needed personnel policy changes from improved premium pay to a meaningful incentive award program additional personnel management legislation is needed in this session as i stated last year an executive pay increase is essential to efficient governmental management such an increase together with needed adjustments in the pay for the top career positions is also necessary to the equitable completion of the federal pay program initiated last year other legislation will be proposed including legislation for prepaid group health insurance for employees and their dependents and to effect major improvements in the civil service retirement system all of us share a continuing concern for those who have served this nation in the armed forces the commission on veterans pensions is at this time conducting a study of the entire field of veterans benefits and will soon submit proposed improvements we are proud of the progress our people have made in the field of civil rights in executive branch operations throughout the nation elimination of discrimination and segregation is all but completed progress is also being made among contractors engaged in furnishing government services and requirements every citizen now has the opportunity to fit himself for and to hold a position of responsibility in the service of his country in the district of columbia through the voluntary cooperation of the people discrimination and segregation are disappearing from hotels theaters restaurants and other facilities it is disturbing that in some localities allegations persist that negro citizens are being deprived of their right to vote and are likewise being subjected to unwarranted economic pressures i recommend that the substance of these charges be thoroughly examined by a bipartisan commission created by the congress it is hoped that such a commission will be established promptly so that it may arrive at findings which can receive early consideration the stature of our leadership in the free world has increased through the past three years because we have made more progress than ever before in a similar period to assure our citizens equality in justice in opportunity and in civil rights we must expand this effort on every front we must strive to have every person judged and measured by what he is rather than by his color race or religion there will soon be recommended to the congress a program further to advance the efforts of the government within the area of federal responsibility to accomplish these objectives one particular challenge confronts us in the hawaiian islands east meets west to the islands asia and europe and the western hemisphere all the continents have contributed their peoples and their cultures to display a unique example of a community that is a successful laboratory in human brotherhood statehood supported by the repeatedly expressed desire of the islands people and by our traditions would be a shining example of the american way to the entire earth consequently i urgently request this congress to grant statehood for hawaii also in harmony with the provisions i last year communicated to the senate and house committees on interior and insular affairs i trust that progress toward statehood for alaska can be made in this session progress is constant toward full integration of our indian citizens into normal community life during the past two years the administration has provided school facilities for thousands of indian children previously denied this opportunity we must continue to meet the needs of increased numbers of indian children provision should also be made for the education of adult indians whose schooling in earlier years was neglected in keeping with our responsibility of world leadership and in our own self interest i again point out to the congress the urgent need for revision of the immigration and nationality laws our nation has always welcomed immigrants to our shores the wisdom of such a policy is clearly shown by the fact that america has been built by immigrants and the descendants of immigrants that policy must be continued realistically with present day conditions in mind i recommend that the number of persons admitted to this country annually be based not on the 1920 census but on the latest the 1950 census provision should be made to allow for greater flexibility in the use of quotas so if one country does not use its share the vacancies may be made available for the use of qualified individuals from other countries the law should be amended to permit the secretary of state and the attorney general to waive the requirements of fingerprinting on a reciprocal basis for persons coming to this country for temporary visits this and other changes in the law are long overdue and should be taken care of promptly detailed recommendations for revision of the immigration laws will be submitted to the congress i am happy to report substantial progress in the flow of immigrants under the refugee relief act of 1953 however i again request this congress to approve without further delay the urgently needed amendments to that act which i submitted in the last session because of the high prosperity in germany and austria the number of immigrants from those countries will be reduced this will make available thousands of unfilled openings which i recommend be distributed to greece and italy and to escapees from behind the iron curtain once again i ask the congress to join with me in demonstrating our belief in the right of suffrage i renew my request that the principle of be extended and the right of suffrage granted to the citizens of the district of columbia to conclude the vista before us is bright the march of science the expanding economy the advance in collective security toward a just peace in this threefold movement our people are creating new standards by which the future of the republic may be judged progress however will be realized only as it is more than matched by a continuing growth in the spiritual strength of the nation our dedication to moral values must be complete in our dealings abroad and in our relationships among ourselves we have devotion to the common good of america never must we forget that this means the the prosperity the security of all americans in every walk of life to the attainment of these objectives i pledge full energies of the administration as in the session ahead it works on a program for submission to you the congress of the united states dwight eisenhower
read joint session clerk house representatives congress united states opening new year must arouse us grateful thanks kind providence whose protection ever present whose bounty manifold abundant state union today demonstrates accomplished god free people vision understanding national problems initiative capacity work willingness sacrifice whenever sacrifice needed past three years responding people want government congress executive done much building stronger better america broad progress fostering energies people providing greater opportunity satisfaction need fulfilling demands strength security republic country peace security posture commands respect spiritual vigor marks national life economy approaching 400 billion dollar mark unparalleled level prosperity national income widely fairly distributed ever number americans work reached high people achieving ever higher standards living earning producing consuming building investing ever virtually sectors society sharing good times farm families act wisely imaginatively promptly strengthen present farm programs also look forward sharing equitably prosperity helped create war korea ended two half years ago collective security system powerfully strengthened defenses reinforced sharply reduced costs programs expand world trade harness atom betterment mankind carried forward economy freed governmental wage price controls inflation halted cost living stabilized government spending cut ten billion dollars nearly three hundred thousand positions eliminated federal payroll taxes substantially reduced balanced budget prospect social security extended ten million americans unemployment insurance four million unprecedented advances civil rights made problems agriculture forthrightly attacked record progress accomplished self imposed caution unnecessary unwise interference private affairs people communities several states executive legislative branches keeping caution ever mind address business year us unfinished business last year resolution outlook bright promise many measures great national importance recommended last year congress still demand immediate attention legislation school highway construction health immigration legislation water resources legislation legislation complete implementation foreign economic policy labor legislation amendments relations act extension fair labor standards act additional groups covered occupational safety legislation legislation construction exhibit vessel many new items business likewise require promote release energies people broaden opportunity advance republic leadership toward peace measures short essential building everstronger america every political economic guide supports valid confidence wise effort rewarded even plentiful harvest human benefit enjoy resources many principles dynamic purposes worthy issues stake immense us entertain doubt fear responsibilities require approach year business sober humility heedless pride present strength position would blind us facts past pitfalls future must walk ever knowledge enriched heritage earned labor sacrifice forebears children children trustees great republic political system prosper cooperating member family nations light administration continued work program republic begun three years ago vast spread national human interests involved within shall message attempt detailed delineation instead time time session submitted congress specific recommendations within specific fields comprehensive survey required preparation administration guided enduring objectives first discharge world responsibility world policy actions dedicated achievement peace justice nations purpose move wide variety ways many agencies remove pall fear strengthen ties partners improve cooperative cohesion free world reduce burden armaments stimulate inspire action among nations world justice prosperity peace national objectives fully supported political parties past year search stable peace taken varied forms among important two conferences geneva july fall last year explored possibilities agreement critical issues jeopardize peace july meeting heads government held promise world moderation bitterness word action tends generate conflict war agreement nuclear war would intolerable disaster must permitted occur october foreign ministers met results demonstrated conclusively soviet leaders yet willing create indispensable conditions secure lasting peace nevertheless clear conflict international communism freedom taken new complexion know communist leaders often practiced tactics retreat zigzag know soviet chinese communism still poses serious threat free world middle east recent soviet moves hardly compatible reduction international tension yet communist tactics free nations shifted emphasis reliance violence threat violence reliance division enticement duplicity must well prepared meet current tactics pose dangerous though less obvious threat time policy must dynamic well flexible designed primarily forward achievement objectives rather meet shift change communist front must act firm assurance fruits freedom attractive desirable mankind pursuit happiness record communism face communist military power must course continue maintain effective system collective security involves two things system gives clear warning armed aggression met joint action free nations deterrent military power make warning effective moreover awesome power atom must made serve guardian free community peace last year free world seen major gains system collective security accession north atlantic treaty organization western european union sovereign federal german republic developing cooperation southeast asia collective defense treaty formation middle east baghdad pact among turkey iraq iran pakistan united kingdom hemisphere system continued show vitality maintaining peace common approach world problems security pacts 40 nations pursuit national purposes steadfast support united nations entering second decade wider membership influence usefulness release fifteen fliers communist china essential prelude world opinion mobilized general assembly condemned imprisonment demanded liberation successful atomic energy conference held geneva united nations auspices atoms peace program practical steps toward use new energy source sponsorship use benefited relations countries active negotiations progress create international agency foster peaceful uses atomic energy past year crucial problem disarmament moved forefront practical political endeavor geneva declared readiness united states exchange blueprints military establishments nation ussr confirmed reciprocal aerial reconnaissance means felt mutual suspicions could allayed atmosphere developed negotiations looking toward limitation arms would improved chances success united nations subcommittee disarmament last fall proposal explored united states also declared willing include reciprocal ground inspection key points overwhelming vote 56 7 united nations december 16 endorsed proposals gave top priority thereby issue placed squarely bar world opinion shall persevere seeking general reduction armaments effective inspection control essential safeguards ensure reciprocity protect security coming year much remains done maintaining military deterrent must intensify efforts achieve peace asia shall continue give help nations struggling maintain freedom threat communist coercion subversion europe shall endeavor increase military strength north atlantic alliance also political cohesion unity purpose shall give assistance feasible recently renewed effort western european nations achieve greater measure integration field peaceful uses atomic energy near east shall spare effort seeking promote fair solution tragic dispute arab states israel want friends united states ready part assure enduring peace area hope sides make contributions necessary achieve purpose latin america shall continue cooperate vigorously trade measures designed assist economic progress area strong economic ties essential element free world partnership increasing trade investment help us prosper together gratifying progress made direction recently extension trade agreements legislation earnestly request congress approve membership organization trade cooperation would assist carrying general agreement tariffs trade party since 1948 membership otc provide effective expeditious means removing discriminations restrictions american exports making trade agreements truly reciprocal united states membership organization evidence continuing desire cooperate promoting expanded trade among free nations thus organization proposed admirably suited interests nations working steady expansion trade closer economic cooperation strictly administrative entity organization trade cooperation course alter control congress tariff import customs policies united states need encourage investment overseas avoiding unfair tax duplications foster foreign trade simplification improvement customs legislation must sustain fortify mutual security program conditions poverty unrest less developed areas make people special target international communism need help achieve economic growth stability necessary preserve independence communist threats enticements order friends may better achieve greater strength common goal need assurance continuity economic assistance development projects programs approve require period years planning completion accordingly ask congress grant limited authority make commitments assistance projects fulfilled appropriations made future fiscal years various steps powerfully strengthen economic foundation foreign policy together constructive action abroad maintain present momentum toward general economic progress vitality free world things change inexorable law life much world ferment change working strongly grave injustices still uncorrected must sanction help perpetuate wrongs particularly mind oppressive division german people bondage millions elsewhere exclusion japan united nations membership shall keep injustices forefront human consciousness seek maintain pressure world opinion fight vast wrongs interest justice secure peace injustice thrives ignorance understanding truth america one powerful forces recommending substantial increase budgetary support united states information agency sum international effort waging peace much resourcefulness great sense dedication urgency ever mustered defense country time war effort weapon force weapons principles ideas embodied historic traditions applied vigor past made america living promise freedom mankind accomplish vital tasks us concerned strength effectiveness morale state department foreign service another guide preparation administration program constant improvement national security peace keystone national policy defense program emphasizes effective flexible type power calculated deter repulse aggression preserve peace short war never military strength better adapted needs improved readiness emergency use maintenance strong military capability indefinite future continue call large share national budget military programs must meet needs today build less would expose nation aggression build excessively influence fear could defeat purposes impair destroy freedom economic system military defenses designed protect improved effectiveness combat readiness forces developing making operational new weapons integrating latest scientific developments including new atomic weapons military plans continue push production modern military aircraft development missiles accelerated basis time moving rapidly practicable toward aircraft ships combat capability especially terms firepower substantially increased made adjustments personnel permitted cessation korean war buildup allies introduction new weapons services planning realistically basis strengthen continental defenses united states canada closest cooperation substantially augmented early warning networks great progress made extending surveillance arctic atlantic pacific approaches north america last analysis real strength lies caliber men women armed forces active reserve much done attract hold capable military personnel needs done year renew request last year legislation provide proper medical care military dependents equitable survivors benefit program administration prepare additional recommendations designed achieve objectives including career incentives medical dental officers nurses increases proportion regular officers closely related mission defense department task federal civil defense administration particular point relationship arises fact key civil defense expanded continental defense program including distant early warning system federal civil defense authorities made progress program comprehensive studies conducted jointly federal civil defense administration states critical target cities determine best procedures adopted case atomic attack must strengthen federal assistance states cities devising effective common defense broad diversified mobilization base facilities materials skills knowledge rapidly expand production things need defense whenever required mobilization base requirements change changing technology strategy must maintain flexibility meet new requirements requesting therefore congress extend defense production act great importance nation security continuing alertness internal subversive activity within without government administration relax efforts deal forthrightly vigorously protection government citizens subversion time fully protecting constitutional rights citizens third objective administration fiscal integrity public office indeed public trust none aspects demanding proper management public finances refer indispensable virtues plain honesty trustworthiness also prudent effective conscientious use tax money refer also attitude mind makes efficient economical service people watchword government long term balanced budget sure index thrifty management home business federal government achievement balanced budget long put business home bankruptcy result similar circumstances government resorts inflation money supply inevitably results depreciation value money increase cost living every investment personal security threatened process inflation real values people savings whether form insurance bonds pension retirement funds savings accounts thereby shriveled made long strides past three years bringing federal finances control deficit fiscal year 1953 almost billion dollars larger deficits seemed certain deficits would depreciated value dollar pushed cost living still higher government waste extravagance searched nonessential activities dropped government expenses carefully scrutinized total spending cut 14 billion dollars amount planned previous administration fiscal year 1954 made possible appropriate existing circumstances transition peacetime economy largest tax cut year history almost billion dollars released every taxpayer country benefited almost savings went directly individuals tax cut also helped build economy make jobs industry increase production many things desired improve scale living great majority americans strong expansion economy coupled constant care efficiency government operations alert guard waste duplication brought us prospective balance income expenditure done continue strengthen military security expect budget balance fiscal year ending june 30 1956 shall propose balanced budget next fiscal year ending june 30 1957 balance seeking accomplished without continuing effort executive legislative branches keep expenditures control also necessary continue present excise taxes without reduction corporation income taxes present rates another year beyond next april 1st unquestionably true present tax level burdensome interest long term continuous economic growth reduced prudently essential sound management government finances mindful enormous national debt obligation toward future americans reduce debt whenever appropriately conditions high peacetime prosperity exist never justify going debt give tax cut expense children present state financial affairs earnestly believe tax cut deemed justifiable unbalance budget budget makes provision reduction even though modest national debt way best maintain fiscal integrity fourth aim program foster strong economy competitive enterprise system depends energy free human beings limited prudent restraints law using free markets plan organize distribute production spurred prospect reward successful effort system developed resources marvelously expanded productive capacity record economic systems devised ages competitive system proved creative user human skills development physical resources richest rewarder human effort still true era improved living standards rising national requirements accompanied swift advances technology rapid obsolescence machines methods typical strides made construction plants produce electrical energy atomic power laboratories installations application new force industry agriculture healing arts developments make imperative assure effective functioning enterprise system federal government concern certain broad areas economic life important agriculture farm people sharing general prosperity alone major groups seen incomes decline rather rise caught two millstones rising production costs declining prices harm part national economy vitally important everyone great concern us resource indispensable land feeds clothes us group fundamental national life farmers successful prosecution war nation called utmost effort farmers response superb contribution unsurpassed farmers blamed mountainous surpluses produced response wartime policies laws long continued war markets markets peacetime failure recognize basic fact timely adjustment wartime legislation brought inevitable result peacetime surpluses lower prices lower incomes farmers dimensions government responsibility broad complex farm problem concerned essential continuing supplies food fiber also way life indispensable strength nation consideration matters must beyond politics national farm policy vital welfare farm people us must become field political warfare much stake farm people expect us responsibility government understanding problems help solve objective must help bring production balance existing new markets prices yield farmers return work line americans get reach goal problems must subjected attack single easy solution rather must assault stubborn problems surpluses prices costs markets steady persistent imaginative advance relationship farmers government days special message shall lay congress detailed recommendations new steps taken promptly speed transition agriculture thus assist farmers achieve fair share national income basic program new attack surplus even farm program work dollar weight accumulated stocks shall urge authorization soil bank program alleviate problem diverted acres overexpanded agricultural plant include acreage reserve reduce current accumulated surpluses crops serious difficulty conservation reserve achieve needed adjustments use agricultural resources shall urge measures strengthen surplus disposal activities shall propose measures strengthen individual commodity programs remove controls possible reduce carryovers stop accumulations surpluses shall ask congress provide substantial new funds expanded drive research front develop new markets new crops new uses rural development program better lot farm families deserves full congressional support great plains program must go forward vigorously advances fronts pull pricedepressing surpluses raise farm income time testing agriculture together regardless party carry forward resolutely sound forward looking program farm people may confidently depend years come shall briefly mention four subjects directly related economy preliminary fuller discussion economic report later communications resources conservation wish critical importance wise use conservation great natural resources land forests minerals water development consistent agricultural policy water particular plays increasing role industrial processes irrigation land electric power well domestic uses time potential damage disaster comprehensive legislative program water conservation submitted congress session development water resources accomplished overnight need must make faster progress without delay therefore strongly recommend action taken session wholly federal projects colorado river storage project project john day partnership project projects provide cooperative action federal government interests legislation makes provision federal participation small projects primary sponsorship agencies state local government past year areas national parks expanded new wildlife refuges created visits people parks increased much rapidly facilities care administration submit recommendations provide adequate facilities keep abreast increasing interest people great outdoors disaster assistance modern community complex combination skills specialized buildings machines communications homes importantly involves human lives disaster many forms flood frost high winds instance destroy massive scale hours labor many years past three years administration repeatedly moved action wherever disaster struck extent state participation relief activities however far uniform many cases either inadequate nonexistent disaster assistance legislation requires overhauling experimental program indemnities undertaken administration make detailed recommendations subjects area redevelopment must help deal pockets chronic unemployment mar nation general industrial prosperity economic changes recent years often rapid areas committed single local resource industrial activity found temporarily deprived markets livelihood conditions mean severe hardship thousands people slow process adaptation new circumstances goes process speeded last year authorized major study problem find additional steps supplement existing programs redevelopment areas chronic unemployment recommendations submitted designed supplement federal technical loan assistance local efforts get vital job improving communities must course remain primary responsibility people living states soundly conceived federal partnership program real assistance efforts highway legislation legislation provide modern interstate highway system even urgent year last 12 months passed fallen behind road construction needed personal safety general prosperity national security american people year number motor vehicles increased 58 61 million past year persons lost lives highway accidents fearful toll injuries property damage gone unabated message february 22 1955 urged measures taken complete vital mile interstate system period 10 years estimated federal cost approximately 25 billion dollars program adopted ever solve mounting traffic problem whole interstate system must authorized one project completed approximately within specified time way industry efficiently gear job ahead way required planning engineering accomplished without confusion waste unavoidable piecemeal approach furthermore pointed last year pressing nature problem must lead us solutions outside bounds sound fiscal management case pressing problems must adequate plan financing continue drastically needed improvement national highway systems recommend continuation federal aid highway program aside agriculture four subjects specifically mentioned integral part efforts foster strong expanding free economy keeping open door opportunity new small enterprises checking monopoly preserving competitive environment past year steady improvement economic health small business reinforced vitality competitive economy shall continue help small business concerns obtain access adequate financing competent counsel management production marketing problems measures already taken opportunities smallbusiness participation government procurement programs including military procurement greatly improved effectiveness measures become increasingly apparent shall continue make certain small business fair opportunity compete economic environment may prosper message last year referred appointment advisory committee appraise report deficiencies well effectiveness existing federal transportation policies commended fundamental purposes objectives committee report earnestly recommend congress give prompt attention committee proposals essential prosperous economic environment business small large agriculture industry efficiency government end exhaustive studies entire governmental structure made commission intergovernmental relations commission organization executive branch government reports commissions intensive review already process implementation important areas one specific vital governmental function merits study action congress part program promoting efficiency government getting fiscal situation hand post office department past three years overhauled nearly one thousand new post offices provided financial practices modernized transportation operating methods constantly improved new wage incentive plan half million postal employees established never postal system handled much mail quickly economically post office department faces two serious problems first much physical plant post offices obsolete inadequate many new buildings modernization present ones essential improved mail service second problem department fiscal plight faces annual deficit billion dollars recommendations postal facilities additional postal revenues submitted congress final consideration program planning response human concerns fundamental belief shines forth republic believe worth dignity individual know govern wisely tradition america must opportunity develop individual capacities utmost fulfill individual aspirations american way life good education fundamental good education outgrowth good homes good communities good churches good schools today schools face pressing problems problems yield swift easy solutions single action yield continuing active formed effort people toward achieving better schools kind effort spurred thousands conferences held recent months half million citizens educators parts country culminating white house conference education conference two thousand delegates broadly representative nation studied together problems nation schools concluded people united states must make greater effort local state federal governments improve education youth expression people must translated action levels government far federal share responsibility concerned urge congress move promptly enact effective program federal assistance help erase existing deficit school classrooms program limited period must operate increase rather decrease local state support schools give greatest help states localities least financial resources federal aid way jeopardize freedom local school systems presented congress recommended program federal assistance school construction program accompanied action increase services nation schools office education legislation provide continuation payments school districts federal activities impaired ability districts provide adequate schools 1954 amendments survivors insurance program protection extended 10 million additional workers benefits increased system helps protect 9 10 american workers families loss income old age death breadwinner system sound must kept developing improvements system must give careful consideration population social trends fiscal requirements considerations mind administration present recommendations expansion coverage steps taken wisely time needs area social welfare include increased child welfare services extension program aid dependent children intensified attack juvenile delinquency special attention problems mentally retarded children training skilled workers fields quest new knowledge research social welfare essential similarly problems aged people need attention nation made dramatic progress conquering disease progress profound human significance greatly accelerated intensified effort medical research program research including basic research open new frontiers knowledge prevent relieve suffering prolong life accordingly shall recommend substantial increase federal funds support program integral part effort shall recommend new plan aid construction medical research teaching facilities help provide adequate support training medical research manpower finally must aid cushioning heavy rising costs illness hospitalization individuals families provision made federal reinsurance otherwise foster extension voluntary health insurance coverage many persons especially older persons rural areas plans evolved improve protection costs prolonged severe illness measures help reduce dollar barrier many americans benefits modern medical care administration health program submitted congress detail response government human concerns embraces course measures broad public interest special interest working men women need still exists improvement labor management relations act recommendations submitted congress last year take account interests labor management also public welfare needed amendments enacted without delay must also carry forward job improving wagehour law last year requested congress broaden coverage minimum wage repeat recommendation pledge full resources executive branch assist congress finding ways attain goal moreover requested last year legislation passed clarify strengthen laws benefit workers subject federal wage standards federal federally assisted construction public works administration shortly propose legislation assure adequate disclosure financial affairs employee pension welfare plan afford substantial protection beneficiaries accordance objectives outlined message january 11 1954 occupational safety still demands attention pointed last year legislation improve longshoremen harbor workers compensation act still needed improvement district columbia unemployment insurance law legislation provide employees district disability insurance less necessary 12 months ago legislation apply principle equal pay equal work without discrimination sex matter simple justice earnestly urge congress move swiftly implement needed labor measures field human needs must carry forward housing program contributing greatly people prosperity economy home ownership advanced point almost three every five families cities towns suburbs houses live housing program legislative authority already exists however firm program public housing essential private building industry found ways provide adequate housing families administration propose authority contract 35 thousand additional public housing units next 2 fiscal years communities participate integrated attack slums blight meet needs growing number older people several amendments national housing act proposed assist private homebuilding industry well charitable organizations large number american people desiring modernize improve existing dwellings recommend title 1 program permanent improvements home liberalized recommend increases general fha mortgage insurance authority extension fha military housing program increase authorization urban planning grants special assistance authority federal national mortgage association continued support college housing program way discourage private capital helping meet needs colleges legislation recommended workers private industry accompanied parallel effort welfare government employees accomplished much field including contributory life insurance program equitable pay increases fringe benefits program covering many needed personnel policy changes improved premium pay meaningful incentive award program additional personnel management legislation needed session stated last year executive pay increase essential efficient governmental management increase together needed adjustments pay top career positions also necessary equitable completion federal pay program initiated last year legislation proposed including legislation prepaid group health insurance employees dependents effect major improvements civil service retirement system us share continuing concern served nation armed forces commission veterans pensions time conducting study entire field veterans benefits soon submit proposed improvements proud progress people made field civil rights executive branch operations throughout nation elimination discrimination segregation completed progress also made among contractors engaged furnishing government services requirements every citizen opportunity fit hold position responsibility service country district columbia voluntary cooperation people discrimination segregation disappearing hotels theaters restaurants facilities disturbing localities allegations persist negro citizens deprived right vote likewise subjected unwarranted economic pressures recommend substance charges thoroughly examined bipartisan commission created congress hoped commission established promptly may arrive findings receive early consideration stature leadership free world increased past three years made progress ever similar period assure citizens equality justice opportunity civil rights must expand effort every front must strive every person judged measured rather color race religion soon recommended congress program advance efforts government within area federal responsibility accomplish objectives one particular challenge confronts us hawaiian islands east meets west islands asia europe western hemisphere continents contributed peoples cultures display unique example community successful laboratory human brotherhood statehood supported repeatedly expressed desire islands people traditions would shining example american way entire earth consequently urgently request congress grant statehood hawaii also harmony provisions last year communicated senate house committees interior insular affairs trust progress toward statehood alaska made session progress constant toward full integration indian citizens normal community life past two years administration provided school facilities thousands indian children previously denied opportunity must continue meet needs increased numbers indian children provision also made education adult indians whose schooling earlier years neglected keeping responsibility world leadership self interest point congress urgent need revision immigration nationality laws nation always welcomed immigrants shores wisdom policy clearly shown fact america built immigrants descendants immigrants policy must continued realistically present day conditions mind recommend number persons admitted country annually based 1920 census latest 1950 census provision made allow greater flexibility use quotas one country use share vacancies may made available use qualified individuals countries law amended permit secretary state attorney general waive requirements fingerprinting reciprocal basis persons coming country temporary visits changes law long overdue taken care promptly detailed recommendations revision immigration laws submitted congress happy report substantial progress flow immigrants refugee relief act 1953 however request congress approve without delay urgently needed amendments act submitted last session high prosperity germany austria number immigrants countries reduced make available thousands unfilled openings recommend distributed greece italy escapees behind iron curtain ask congress join demonstrating belief right suffrage renew request principle extended right suffrage granted citizens district columbia conclude vista us bright march science expanding economy advance collective security toward peace threefold movement people creating new standards future republic may judged progress however realized matched continuing growth spiritual strength nation dedication moral values must complete dealings abroad relationships among devotion common good america never must forget means prosperity security americans every walk life attainment objectives pledge full energies administration session ahead works program submission congress united states dwight eisenhower
read joint session clerk house representative congress united state open new year must arouse u grateful thanks kind providence whose protection ever present whose bounty manifold abundant state union today demonstrate accomplish god free people vision understanding national problem initiative capacity work willingness sacrifice whenever sacrifice need past three year respond people want government congress executive do much building strong well america broad progress foster energy people provide great opportunity satisfaction need fulfil demand strength security republic country peace security posture command respect spiritual vigor mark national life economy approach 400 billion dollar mark unparalleled level prosperity national income widely fairly distribute ever number american work reach high people achieve ever high standard live earn produce consume building invest ever virtually sector society share good time farm family act wisely imaginatively promptly strengthen present farm program also look forward share equitably prosperity help create war korea end two half year ago collective security system powerfully strengthen defense reinforce sharply reduce cost program expand world trade harness atom betterment mankind carry forward economy free governmental wage price control inflation halt cost living stabilized government spending cut ten billion dollar nearly three hundred thousand position eliminate federal payroll tax substantially reduce balanced budget prospect social security extend ten million american unemployment insurance four million unprecedented advance civil right make problem agriculture forthrightly attack record progress accomplish self impose caution unnecessary unwise interference private affair people community several state executive legislative branch keep caution ever mind address business year u unfinished business last year resolution outlook bright promise many measure great national importance recommend last year congress still demand immediate attention legislation school highway construction health immigration legislation water resource legislation legislation complete implementation foreign economic policy labor legislation amendment relation act extension fair labor standard act additional group cover occupational safety legislation legislation construction exhibit vessel many new item business likewise require promote release energies people broaden opportunity advance republic leadership toward peace measure short essential building everstronger america every political economic guide support valid confidence wise effort reward even plentiful harvest human benefit enjoy resource many principle dynamic purpose worthy issue stake immense u entertain doubt fear responsibility require approach year business sober humility heedless pride present strength position would blind u fact past pitfall future must walk ever knowledge enriched heritage earn labor sacrifice forebears child child trustees great republic political system prosper cooperate member family nation light administration continue work program republic begin three year ago vast spread national human interest involve within shall message attempt detailed delineation instead time time session submit congress specific recommendation within specific field comprehensive survey require preparation administration guide endure objective first discharge world responsibility world policy action dedicate achievement peace justice nation purpose move wide variety way many agency remove pall fear strengthen tie partner improve cooperative cohesion free world reduce burden armament stimulate inspire action among nation world justice prosperity peace national objective fully support political party past year search stable peace take varied form among important two conference geneva july fall last year explore possibility agreement critical issue jeopardize peace july meet heads government hold promise world moderation bitterness word action tend generate conflict war agreement nuclear war would intolerable disaster must permit occur october foreign minister meet result demonstrate conclusively soviet leader yet willing create indispensable condition secure last peace nevertheless clear conflict international communism freedom take new complexion know communist leader often practice tactic retreat zigzag know soviet chinese communism still pose serious threat free world middle east recent soviet move hardly compatible reduction international tension yet communist tactic free nation shift emphasis reliance violence threat violence reliance division enticement duplicity must well prepare meet current tactic pose dangerous though less obvious threat time policy must dynamic well flexible design primarily forward achievement objective rather meet shift change communist front must act firm assurance fruit freedom attractive desirable mankind pursuit happiness record communism face communist military power must course continue maintain effective system collective security involve two thing system give clear warning arm aggression meet joint action free nation deterrent military power make warn effective moreover awesome power atom must make serve guardian free community peace last year free world see major gain system collective security accession north atlantic treaty organization western european union sovereign federal german republic develop cooperation southeast asia collective defense treaty formation middle east baghdad pact among turkey iraq iran pakistan united kingdom hemisphere system continue show vitality maintain peace common approach world problem security pacts 40 nation pursuit national purpose steadfast support unite nation enter second decade wider membership influence usefulness release fifteen flier communist china essential prelude world opinion mobilize general assembly condemn imprisonment demand liberation successful atomic energy conference hold geneva united nation auspex atoms peace program practical step toward use new energy source sponsorship use benefit relation country active negotiation progress create international agency foster peaceful us atomic energy past year crucial problem disarmament move forefront practical political endeavor geneva declare readiness united state exchange blueprint military establishment nation ussr confirm reciprocal aerial reconnaissance mean felt mutual suspicion could allay atmosphere develop negotiation look toward limitation arm would improve chance success united nation subcommittee disarmament last fall proposal explore united state also declare willing include reciprocal ground inspection key point overwhelming vote 56 7 united nation december 16 endorsed proposal give top priority thereby issue place squarely bar world opinion shall persevere seek general reduction armament effective inspection control essential safeguard ensure reciprocity protect security come year much remain do maintain military deterrent must intensify effort achieve peace asia shall continue give help nation struggle maintain freedom threat communist coercion subversion europe shall endeavor increase military strength north atlantic alliance also political cohesion unity purpose shall give assistance feasible recently renew effort western european nation achieve great measure integration field peaceful us atomic energy near east shall spare effort seek promote fair solution tragic dispute arab state israel want friend united state ready part assure endure peace area hope side make contribution necessary achieve purpose latin america shall continue cooperate vigorously trade measure design assist economic progress area strong economic tie essential element free world partnership increase trade investment help u prosper together gratify progress make direction recently extension trade agreement legislation earnestly request congress approve membership organization trade cooperation would assist carry general agreement tariff trade party since 1948 membership otc provide effective expeditious mean remove discrimination restriction american export make trade agreement truly reciprocal united state membership organization evidence continue desire cooperate promoting expand trade among free nation thus organization propose admirably suited interest nation work steady expansion trade closer economic cooperation strictly administrative entity organization trade cooperation course alter control congress tariff import custom policy united state need encourage investment overseas avoid unfair tax duplication foster foreign trade simplification improvement custom legislation must sustain fortify mutual security program condition poverty unrest less developed area make people special target international communism need help achieve economic growth stability necessary preserve independence communist threat enticement order friend may better achieve great strength common goal need assurance continuity economic assistance development project program approve require period year plan completion accordingly ask congress grant limit authority make commitment assistance project fulfil appropriation make future fiscal year various step powerfully strengthen economic foundation foreign policy together constructive action abroad maintain present momentum toward general economic progress vitality free world thing change inexorable law life much world ferment change work strongly grave injustice still uncorrected must sanction help perpetuate wrong particularly mind oppressive division german people bondage million elsewhere exclusion japan united nation membership shall keep injustice forefront human consciousness seek maintain pressure world opinion fight vast wrong interest justice secure peace injustice thrives ignorance understand truth america one powerful force recommend substantial increase budgetary support unite state information agency sum international effort wag peace much resourcefulness great sense dedication urgency ever muster defense country time war effort weapon force weapon principle idea embody historic tradition apply vigor past make america live promise freedom mankind accomplish vital task u concerned strength effectiveness morale state department foreign service another guide preparation administration program constant improvement national security peace keystone national policy defense program emphasize effective flexible type power calculate deter repulse aggression preserve peace short war never military strength well adapt need improved readiness emergency use maintenance strong military capability indefinite future continue call large share national budget military program must meet need today build less would expose nation aggression build excessively influence fear could defeat purpose impair destroy freedom economic system military defense design protect improve effectiveness combat readiness force develop make operational new weapon integrate late scientific development include new atomic weapon military plan continue push production modern military aircraft development missile accelerate basis time move rapidly practicable toward aircraft ship combat capability especially term firepower substantially increase make adjustment personnel permit cessation korean war buildup ally introduction new weapon service plan realistically basis strengthen continental defense united state canada close cooperation substantially augment early warning network great progress make extend surveillance arctic atlantic pacific approach north america last analysis real strength lie caliber men woman arm force active reserve much do attract hold capable military personnel need do year renew request last year legislation provide proper medical care military dependent equitable survivor benefit program administration prepare additional recommendation design achieve objective include career incentive medical dental officer nurse increase proportion regular officer closely related mission defense department task federal civil defense administration particular point relationship arise fact key civil defense expand continental defense program include distant early warning system federal civil defense authority make progress program comprehensive study conduct jointly federal civil defense administration state critical target city determine best procedure adopt case atomic attack must strengthen federal assistance state city devise effective common defense broad diversified mobilization base facility material skill knowledge rapidly expand production thing need defense whenever require mobilization base requirement change change technology strategy must maintain flexibility meet new requirement request therefore congress extend defense production act great importance nation security continue alertness internal subversive activity within without government administration relax effort deal forthrightly vigorously protection government citizen subversion time fully protect constitutional right citizen third objective administration fiscal integrity public office indeed public trust none aspects demand proper management public finance refer indispensable virtue plain honesty trustworthiness also prudent effective conscientious use tax money refer also attitude mind make efficient economical service people watchword government long term balance budget sure index thrifty management home business federal government achievement balance budget long put business home bankruptcy result similar circumstance government resort inflation money supply inevitably result depreciation value money increase cost live every investment personal security threaten process inflation real value people savings whether form insurance bond pension retirement fund savings account thereby shrivel make long strides past three year bring federal finance control deficit fiscal year 1953 almost billion dollar large deficit seem certain deficit would depreciate value dollar push cost living still higher government waste extravagance search nonessential activity drop government expense carefully scrutinize total spending cut 14 billion dollar amount plan previous administration fiscal year 1954 make possible appropriate exist circumstance transition peacetime economy large tax cut year history almost billion dollar release every taxpayer country benefit almost saving go directly individual tax cut also help build economy make job industry increase production many thing desire improve scale live great majority americans strong expansion economy couple constant care efficiency government operation alert guard waste duplication bring u prospective balance income expenditure do continue strengthen military security expect budget balance fiscal year end june 30 1956 shall propose balanced budget next fiscal year end june 30 1957 balance seek accomplish without continue effort executive legislative branch keep expenditure control also necessary continue present excise tax without reduction corporation income tax present rate another year beyond next april 1st unquestionably true present tax level burdensome interest long term continuous economic growth reduce prudently essential sound management government finance mindful enormous national debt obligation toward future american reduce debt whenever appropriately condition high peacetime prosperity exist never justify go debt give tax cut expense child present state financial affair earnestly believe tax cut deem justifiable unbalance budget budget make provision reduction even though modest national debt way best maintain fiscal integrity fourth aim program foster strong economy competitive enterprise system depend energy free human being limit prudent restraint law use free market plan organize distribute production spur prospect reward successful effort system develop resource marvelously expand productive capacity record economic system devise age competitive system prove creative user human skill development physical resource rich rewarder human effort still true era improve living standard rise national requirement accompany swift advance technology rapid obsolescence machine method typical stride make construction plant produce electrical energy atomic power laboratory installation application new force industry agriculture heal art development make imperative assure effective functioning enterprise system federal government concern certain broad area economic life important agriculture farm people share general prosperity alone major group see income decline rather rise catch two millstone rise production cost decline price harm part national economy vitally important everyone great concern u resource indispensable land feed clothe u group fundamental national life farmer successful prosecution war nation call utmost effort farmer response superb contribution unsurpassed farmer blame mountainous surplus produce response wartime policy law long continue war market market peacetime failure recognize basic fact timely adjustment wartime legislation bring inevitable result peacetime surplus low price low income farmer dimension government responsibility broad complex farm problem concern essential continue supply food fiber also way life indispensable strength nation consideration matter must beyond politics national farm policy vital welfare farm people u must become field political warfare much stake farm people expect u responsibility government understand problem help solve objective must help bring production balance exist new market price yield farmer return work line american get reach goal problem must subject attack single easy solution rather must assault stubborn problem surplus price cost market steady persistent imaginative advance relationship farmer government day special message shall lay congress detailed recommendation new step take promptly speed transition agriculture thus assist farmer achieve fair share national income basic program new attack surplus even farm program work dollar weight accumulated stock shall urge authorization soil bank program alleviate problem divert acre overexpanded agricultural plant include acreage reserve reduce current accumulate surplus crop serious difficulty conservation reserve achieve need adjustment use agricultural resource shall urge measure strengthen surplus disposal activity shall propose measure strengthen individual commodity program remove control possible reduce carryovers stop accumulation surpluses shall ask congress provide substantial new fund expand drive research front develop new market new crop new us rural development program well lot farm family deserve full congressional support great plain program must go forward vigorously advance front pull pricedepressing surplus raise farm income time test agriculture together regardless party carry forward resolutely sound forward look program farm people may confidently depend year come shall briefly mention four subject directly related economy preliminary fuller discussion economic report later communication resource conservation wish critical importance wise use conservation great natural resource land forest mineral water development consistent agricultural policy water particular play increase role industrial process irrigation land electric power well domestic us time potential damage disaster comprehensive legislative program water conservation submit congress session development water resource accomplish overnight need must make fast progress without delay therefore strongly recommend action take session wholly federal project colorado river storage project project john day partnership project project provide cooperative action federal government interest legislation make provision federal participation small project primary sponsorship agency state local government past year area national park expand new wildlife refuge create visit people park increase much rapidly facility care administration submit recommendation provide adequate facility keep abreast increase interest people great outdoors disaster assistance modern community complex combination skill specialized building machine communication home importantly involve human life disaster many form flood frost high wind instance destroy massive scale hour labor many year past three year administration repeatedly move action wherever disaster struck extent state participation relief activity however far uniform many case either inadequate nonexistent disaster assistance legislation require overhaul experimental program indemnity undertake administration make detailed recommendation subject area redevelopment must help deal pocket chronic unemployment mar nation general industrial prosperity economic change recent year often rapid area commit single local resource industrial activity find temporarily deprive market livelihood condition mean severe hardship thousand people slow process adaptation new circumstance go process speed last year authorize major study problem find additional step supplement exist program redevelopment area chronic unemployment recommendation submit design supplement federal technical loan assistance local effort get vital job improve community must course remain primary responsibility people live state soundly conceive federal partnership program real assistance effort highway legislation legislation provide modern interstate highway system even urgent year last 12 month pass fall behind road construction need personal safety general prosperity national security american people year number motor vehicle increase 58 61 million past year person lose life highway accident fearful toll injury property damage go unabated message february 22 1955 urge measure take complete vital mile interstate system period 10 year estimate federal cost approximately 25 billion dollar program adopt ever solve mount traffic problem whole interstate system must authorize one project complete approximately within specify time way industry efficiently gear job ahead way required planning engineering accomplish without confusion waste unavoidable piecemeal approach furthermore point last year press nature problem must lead u solution outside bound sound fiscal management case press problem must adequate plan finance continue drastically need improvement national highway system recommend continuation federal aid highway program aside agriculture four subject specifically mention integral part effort foster strong expand free economy keep open door opportunity new small enterprise check monopoly preserve competitive environment past year steady improvement economic health small business reinforce vitality competitive economy shall continue help small business concern obtain access adequate financing competent counsel management production marketing problem measure already take opportunity smallbusiness participation government procurement program include military procurement greatly improved effectiveness measure become increasingly apparent shall continue make certain small business fair opportunity compete economic environment may prosper message last year refer appointment advisory committee appraise report deficiency well effectiveness exist federal transportation policy commend fundamental purpose objectives committee report earnestly recommend congress give prompt attention committee proposal essential prosperous economic environment business small large agriculture industry efficiency government end exhaustive study entire governmental structure make commission intergovernmental relation commission organization executive branch government report commission intensive review already process implementation important area one specific vital governmental function merit study action congress part program promote efficiency government get fiscal situation hand post office department past three year overhaul nearly one thousand new post office provide financial practice modernize transportation operate method constantly improve new wage incentive plan half million postal employee establish never postal system handle much mail quickly economically post office department face two serious problem first much physical plant post office obsolete inadequate many new building modernization present one essential improved mail service second problem department fiscal plight face annual deficit billion dollar recommendation postal facility additional postal revenue submit congress final consideration program planning response human concern fundamental belief shine forth republic believe worth dignity individual know govern wisely tradition america must opportunity develop individual capacity utmost fulfill individual aspiration american way life good education fundamental good education outgrowth good home good community good church good school today school face press problem problem yield swift easy solution single action yield continue active form effort people toward achieve good school kind effort spur thousand conference hold recent month half million citizen educator part country culminate white house conference education conference two thousand delegate broadly representative nation study together problem nation school conclude people united state must make great effort local state federal government improve education youth expression people must translate action level government far federal share responsibility concern urge congress move promptly enact effective program federal assistance help erase exist deficit school classroom program limited period must operate increase rather decrease local state support school give great help state locality least financial resource federal aid way jeopardize freedom local school system present congress recommend program federal assistance school construction program accompany action increase service nation school office education legislation provide continuation payment school district federal activity impair ability district provide adequate school 1954 amendment survivors insurance program protection extend 10 million additional worker benefit increase system help protect 9 10 american worker family loss income old age death breadwinner system sound must keep develop improvement system must give careful consideration population social trend fiscal requirement consideration mind administration present recommendation expansion coverage step take wisely time need area social welfare include increase child welfare service extension program aid dependent child intensify attack juvenile delinquency special attention problem mentally retard child train skilled worker field quest new knowledge research social welfare essential similarly problem age people need attention nation make dramatic progress conquer disease progress profound human significance greatly accelerate intensified effort medical research program research include basic research open new frontier knowledge prevent relieve suffering prolong life accordingly shall recommend substantial increase federal fund support program integral part effort shall recommend new plan aid construction medical research teaching facility help provide adequate support train medical research manpower finally must aid cushion heavy rising cost illness hospitalization individual family provision make federal reinsurance otherwise foster extension voluntary health insurance coverage many person especially older person rural area plan evolve improve protection cost prolong severe illness measure help reduce dollar barrier many american benefit modern medical care administration health program submit congress detail response government human concern embrace course measure broad public interest special interest work men woman need still exist improvement labor management relation act recommendation submit congress last year take account interest labor management also public welfare need amendment enact without delay must also carry forward job improve wagehour law last year request congress broaden coverage minimum wage repeat recommendation pledge full resource executive branch assist congress find way attain goal moreover request last year legislation pass clarify strengthen law benefit worker subject federal wage standard federal federally assist construction public work administration shortly propose legislation assure adequate disclosure financial affair employee pension welfare plan afford substantial protection beneficiary accordance objective outline message january 11 1954 occupational safety still demand attention point last year legislation improve longshoreman harbor worker compensation act still need improvement district columbia unemployment insurance law legislation provide employee district disability insurance less necessary 12 month ago legislation apply principle equal pay equal work without discrimination sex matter simple justice earnestly urge congress move swiftly implement need labor measure field human need must carry forward housing program contribute greatly people prosperity economy home ownership advance point almost three every five family city towns suburbs house live housing program legislative authority already exist however firm program public housing essential private building industry find way provide adequate housing family administration propose authority contract 35 thousand additional public housing unit next 2 fiscal year community participate integrate attack slum blight meet need grow number old people several amendment national housing act propose assist private homebuilding industry well charitable organization large number american people desire modernize improve exist dwelling recommend title 1 program permanent improvement home liberalize recommend increase general fha mortgage insurance authority extension fha military housing program increase authorization urban planning grant special assistance authority federal national mortgage association continue support college housing program way discourage private capital help meet need college legislation recommend worker private industry accompany parallel effort welfare government employee accomplish much field include contributory life insurance program equitable pay increase fringe benefit program cover many need personnel policy change improve premium pay meaningful incentive award program additional personnel management legislation need session state last year executive pay increase essential efficient governmental management increase together need adjustment pay top career position also necessary equitable completion federal pay program initiate last year legislation propose include legislation prepay group health insurance employee dependent effect major improvement civil service retirement system u share continue concern serve nation arm force commission veteran pension time conduct study entire field veteran benefit soon submit proposed improvement proud progress people make field civil right executive branch operation throughout nation elimination discrimination segregation complete progress also make among contractor engage furnish government service requirement every citizen opportunity fit hold position responsibility service country district columbia voluntary cooperation people discrimination segregation disappear hotel theater restaurant facility disturb locality allegation persist negro citizen deprive right vote likewise subject unwarranted economic pressure recommend substance charge thoroughly examine bipartisan commission create congress hop commission establish promptly may arrive finding receive early consideration stature leadership free world increase past three year make progress ever similar period assure citizens equality justice opportunity civil right must expand effort every front must strive every person judge measure rather color race religion soon recommend congress program advance effort government within area federal responsibility accomplish objectives one particular challenge confronts u hawaiian island east meet west island asia europe western hemisphere continent contribute people culture display unique example community successful laboratory human brotherhood statehood support repeatedly express desire islands people tradition would shin example american way entire earth consequently urgently request congress grant statehood hawaii also harmony provision last year communicate senate house committee interior insular affair trust progress toward statehood alaska make session progress constant toward full integration indian citizen normal community life past two year administration provide school facility thousand indian child previously deny opportunity must continue meet need increase number indian child provision also make education adult indian whose school early year neglect keep responsibility world leadership self interest point congress urgent need revision immigration nationality law nation always welcome immigrant shore wisdom policy clearly show fact america build immigrant descendant immigrant policy must continue realistically present day condition mind recommend number person admit country annually base 1920 census late 1950 census provision make allow great flexibility use quota one country use share vacancy may make available use qualified individual country law amend permit secretary state attorney general waive requirement fingerprint reciprocal basis person come country temporary visit change law long overdue take care promptly detail recommendation revision immigration law submit congress happy report substantial progress flow immigrant refugee relief act 1953 however request congress approve without delay urgently need amendment act submit last session high prosperity germany austria number immigrant country reduce make available thousand unfilled opening recommend distribute greece italy escapee behind iron curtain ask congress join demonstrate belief right suffrage renew request principle extend right suffrage grant citizen district columbia conclude vista u bright march science expand economy advance collective security toward peace threefold movement people create new standard future republic may judge progress however realize match continue growth spiritual strength nation dedication moral value must complete dealing abroad relationship among devotion common good america never must forget mean prosperity security american every walk life attainment objective pledge full energy administration session ahead work program submission congress united state dwight eisenhower