The present state of the Union, upon which it is customary for the President to report to the Congress under the provisions of the Constitution, is such that it may be regarded with encouragement and satisfaction by every American. Our country is almost unique in its ability to discharge fully and promptly all its obligations at home and abroad, and provide for all its inhabitants an increase in material resources, in intellectual vigor and in moral power. The Nation holds a position unsurpassed in all former human experience. This does not mean that we do not have any problems. It is elementary that the increasing breadth of our experience necessarily increases the problems of our national life. But it does mean that if all will but apply ourselves industriously and honestly, we have ample powers with which to meet our problems and provide for I heir speedy solution. I do not profess that we can secure an era of perfection in human existence, but we can provide an era of peace and prosperity, attended with freedom and justice and made more and more satisfying by the ministrations of the charities and humanities of life.
 Our domestic problems are for the most part economic. We have our enormous debt to pay, and we are paying it. We have the high cost of government to diminish, and we are diminishing it. We have a heavy burden of taxation to reduce, and we are reducing it. But while remarkable progress has been made in these directions, the work is yet far from accomplished. We still owe over $21,000,000,000, the cost of the National Government is still about $3,500,000,000, and the national taxes still amount to about $27 for each one of our inhabitants. There yet exists this enormous field for the application of economy.
 In my opinion the Government can do more to remedy the economic ills of the people by a system of rigid economy in public expenditure than can be accomplished through any other action. The costs of our national and local governments combined now stand at a sum close to $100 for each inhabitant of the land. A little less than one-third of this is represented by national expenditure, and a little more than two-thirds by local expenditure. It is an ominous fact that only the National Government is reducing its debt. Others are increasing theirs at about $1,000,000,000 each year. The depression that overtook business, the disaster experienced in agriculture, the lack of employment and the terrific shrinkage in all values which our country experienced in a most acute form in 1920, resulted in no small measure from the prohibitive taxes which were then levied on all productive effort. The establishment of a system of drastic economy in public expenditure, which has enabled us to pay off about one-fifth of the national debt since 1919, and almost cut in two the national tax burden since 1921, has been one of the main causes in reestablishing a prosperity which has come to include within its benefits almost every one of our inhabitants. Economy reaches everywhere. It carries a blessing to everybody.
 The fallacy of the claim that the costs of government are borne by the rich and those who make a direct contribution to the National Treasury can not be too often exposed. No system has been devised, I do not think any system could be devised, under which any person living in this country could escape being affected by the cost of our government. It has a direct effect both upon the rate and the purchasing power of wages. It is felt in the price of those prime necessities of existence, food, clothing, fuel and shelter. It would appear to be elementary that the more the Government expends the more it must require every producer to contribute out of his production to the Public Treasury, and the less he will have for his own benefit. The continuing costs of public administration can be met in only one way -- by the work of the people. The higher they become, the more the people must work for the Government. The less they are, the more the people can work for themselves.
 The present estimated margin between public receipts and expenditures for this fiscal year is very small. Perhaps the most important work that this session of the Congress can do is to continue a policy of economy and further reduce the cost of government, in order that we may have a reduction of taxes for the next fiscal year. Nothing is more likely to produce that public confidence which is the forerunner and the mainstay of prosperity, encourage and enlarge business opportunity with ample opportunity for employment at good wages, provide a larger market for agricultural products, and put our country in a stronger position to be able to meet the world competition in trade, than a continuing policy of economy. Of course necessary costs must be met, proper functions of the Government performed, and constant investments for capital account and reproductive effort must be carried on by our various departments. But the people must know that their Government is placing upon them no unnecessary burden.
 
 Everyone desires a reduction of taxes, and there is a great preponderance of sentiment in favor of taxation reform. When I approved the present tax law, I stated publicly that I did so in spite of certain provisions which I believed unwise and harmful. One of the most glaring of these was the making public of the amounts assessed against different income-tax payers. Although that damage has now been done, I believe its continuation to be detrimental To the public welfare and bound to decrease public revenues, so that it ought to be repealed.
 Anybody can reduce taxes, but it is not so easy to stand in the gap and resist the passage of increasing appropriation bills which would make tax reduction impossible. It will be very easy to measure the strength of the attachment to reduced taxation by the power with which increased appropriations are resisted. If at the close of the present session the Congress has kept within the budget which I propose to present, it will then be possible to have a moderate amount of tax reduction and all the tax reform that the Congress may wish for during the next fiscal year. The country is now feeling the direct stimulus which came from the passage of the last revenue bill, and under the assurance of a reasonable system of taxation there is every prospect of an era of prosperity of unprecedented proportions. But it would be idle to expect any such results unless business can continue free from excess profits taxation and be accorded a system of surtaxes at rates which have for their object not the punishment of success or the discouragement of business, but the production of the greatest amount of revenue from large incomes. I am convinced that the larger incomes of the country would actually yield more revenue to the Government if the basis of taxation were scientifically revised downward. Moreover the effect of the present method of this taxation is to increase the cost of interest. on productive enterprise and to increase the burden of rent. It is altogether likely that such reduction would so encourage and stimulate investment that it would firmly establish our country in the economic leadership of the world.
 
 Meantime our internal development should go on. Provision should be made for flood control of such rivers as the Mississippi and the Colorado, and for the opening up of our inland waterways to commerce. Consideration is due to the project of better navigation from the Great Lakes to the Gulf. Every effort is being made to promote an agreement with Canada to build the, St. Lawrence waterway. There are pending before the Congress bills for further development of the Mississippi Basin, for the taking over of the Cape Cod Canal in accordance with a moral obligation which seems to have been incurred during the war, and for the improvement of harbors on both the Pacific and the Atlantic coasts. While this last should be divested of some of its projects and we must proceed slowly, these bills in general have my approval. Such works are productive of wealth and in the long run tend to a reduction of the tax burden.
 
 Our country has a well defined policy of reclamation established under statutory authority. This policy should be continued and made a self-sustaining activity administered in a manner that will meet local requirements and bring our and lands into a profitable state of cultivation as fast as there is a market for their products. Legislation is pending based on the report of the Fact Finding Commission for the proper relief of those needing extension of time in which to meet their payments on irrigated land, and for additional amendments and reforms of our reclamation laws, which are all exceedingly important and should be enacted at once.
 No more important development has taken place in the last year than the beginning of a restoration of agriculture to a prosperous condition. We must permit no division of classes in this country, with one occupation striving to secure advantage over another. Each must proceed under open opportunities and with a fair prospect of economic equality. The Government can not successfully insure prosperity or fix prices by legislative fiat. Every business has its risk and its times of depression. It is well known that in the long run there will be a more even prosperity and a more satisfactory range of prices under the natural working out of economic laws than when the Government undertakes the artificial support of markets and industries. Still we can so order our affairs, so protect our own people from foreign competition, so arrange our national finances, so administer our monetary system, so provide for the extension of credits, so improve methods of distribution, as to provide a better working machinery for the transaction of the business of the Nation with the least possible friction and loss. The Government has been constantly increasing its efforts in these directions for the relief and permanent establishment of agriculture on a sound and equal basis with other business.
 It is estimated that the value of the crops for this harvest year may reach $13,000,000,000, which is an increase of over $3,000,000,000 in three years. It compares with $7,100,000,000 in 1913, arid if we make deduction from the figures of 1924 for the comparatively decreased value of the dollar, the yield this year still exceeds 1913 in purchasing power by over $1,000,000,000, and in this interval there has been no increase in the number of farmers. Mostly by his own effort the farmer has decreased the cost of production. A marked increase in the price of his products and some decrease in the price of his supplies has brought him about to a parity with the rest of the Nation. The crop area of this season is estimated at 370,000,000 acres, which is a decline of 3,000,000 acres from last year, and 6,000,000 acres from 1919. This has been a normal and natural application of economic laws, which has placed agriculture on a foundation which is undeniably sound and beginning to be satisfactory.
 A decrease in the world supply of wheat has resulted in a very large increase in the price of that commodity. The position of all agricultural products indicates a better balanced supply, but we can not yet conclude that agriculture is recovered from the effects of the war period or that it is permanently on a prosperous basis. The cattle industry has not yet recovered and in some sections has been suffering from dry weather. Every effort must be made both by Government activity and by private agencies to restore and maintain agriculture to a complete normal relationship with other industries.
 It was on account of past depression, and in spite of present more encouraging conditions, that I have assembled an Agricultural Conference made up of those who are representative of this great industry in both its operating and economic sides. Everyone knows that the great need of the farmers is markets. The country is not suffering on the side of production. Almost the entire difficulty is on the side of distribution. This reaches back, of course, to unit costs and diversification, and many allied subjects. It is exceedingly intricate, for our domestic and foreign trade, transportation and banking, and in fact our entire economic system, are closely related to it. In time for action at this session, I hope to report to the Congress such legislative remedies as the conference may recommend. An appropriation should be made to defray their necessary expenses.
 
 The production of nitrogen for plant food in peace and explosives in war is more and more important. It is one of the chief sustaining elements of life. It is estimated that soil exhaustion each year is represented by about 9,000,000 tons and replenishment by 5,450,000 tons. The deficit of 3,550,000 tons is reported to represent the impairment of 118,000,000 acres of farm lands each year.
 To meet these necessities the Government has been developing a water power project at Muscle Shoals to be equipped to produce nitrogen for explosives and fertilizer. It is my opinion that the support of agriculture is the chief problem to consider in connection with this property. It could by no means supply the present needs for nitrogen, but it would help and its development would encourage bringing other water powers into like use.
 Several offers have been made for the purchase of this property. Probably none of them represent final terms. Much costly experimentation is necessary to produce commercial nitrogen. For that reason it is a field better suited to private enterprise than to Government operation. I should favor a sale of this property, or long-time lease, tinder rigid guaranties of commercial nitrogen production at reasonable prices for agricultural use. There would be a surplus of power for many years over any possibility of its application to a developing manufacture of nitrogen. It may be found advantageous to dispose of the right to surplus power separately with such reservations as will allow its gradual withdrawal and application to nitrogen manufacture. A subcommittee of the Committees on Agriculture should investigate this field and negotiate with prospective purchasers. If no advantageous offer be made, the development should continue and the plant should be dedicated primarily to the production of materials for the fertilization of the soil.
 
 The railways during the past year have made still further progress in recuperation from the war, with large rains in efficiency and ability expeditiously to handle the traffic of the country. We have now passed through several periods of peak traffic without the car shortages which so frequently in the past have brought havoc to our agriculture and industries. The condition of many of our great freight terminals is still one of difficulty and results in imposing, large costs on the public for inward-bound freight, and on the railways for outward-bound freight. Owing to the growth of our large cities and the great increase in the volume of traffic, particularly in perishables, the problem is not only difficult of solution, but in some cases not wholly solvable by railway action alone.
 In my message last year I emphasized the necessity for further legislation with a view to expediting the consolidation of our rail ways into larger systems. The principle of Government control of rates and profits, now thoroughly imbedded in our governmental attitude toward natural monopolies such as the railways, at once eliminates the need of competition by small units as a method of rate adjustment. Competition must be preserved as a stimulus to service , but this will exist and can be increased tinder enlarged systems. Consequently the consolidation of the railways into larger units for the purpose of securing the substantial values to the public which will come from larger operation has been the logical conclusion of Congress in its previous enactments, and is also supported by the best opinion in the country. Such consolidation will assure not only a greater element of competition as to service, but it will afford economy in operation, greater stability in railway earnings, and more economical financing. It opens large possibilities of better equalization of rates between different classes of traffic so as to relieve undue burdens upon agricultural products and raw materials generally, which are now not possible without ruin to small units owing to the lack of diversity of traffic. It would also tend to equalize earnings in such fashion as to reduce the importance of section 15A, at which criticism, often misapplied, has been directed. A smaller number of units would offer less difficulties in labor adjustments and would contribute much to the, solution of terminal difficulties.
 The consolidations need to be carried out with due regard to public interest and to the rights and established life of various communities in our country. It does not seem to me necessary that we endeavor to anticipate any final plan or adhere to an artificial and unchangeable project which shall stipulate a fixed number of systems, but rather we ought to approach the problem with such a latitude of action that it can be worked out step by step in accordance with a comprehensive consideration of public interest. Whether the number of ultimate systems shall be more or less seems to me can only be determined by time and actual experience in the development of such consolidations.
 Those portions of the present law contemplating consolidations ore not, sufficiently effective in producing expeditious action and need amplification of the authority of the Interstate Commerce Commission, particularly in affording a period for voluntary proposals to the commission and in supplying Government pressure to secure action after the expiration of such a period.
 There are other proposals before Congress for amending the transportation acts. One of these contemplates a revision of the method of valuation for rate-making purposes to be followed by a renewed valuation of the railways. The valuations instituted by the Interstate Commerce Commission 10 years ago have not yet been completed. They have cost the Government an enormous sum, and they have imposed great expenditure upon the railways, most of which has in effect come out of the public in increased rates. This work should not be abandoned or supplanted until its results are known and can be considered.
 Another matter before the Congress is legislation affecting the labor sections of the transportation act. Much criticism has been directed at the workings of this section and experience has shown that some useful amendment could be made to these provisions.
 It would be helpful if a plan could be adopted which, while retaining the practice of systematic collective bargaining with conciliation voluntary arbitration of labor differences, could also provide simplicity in relations and more direct local responsibility of employees and managers. But such legislation will not meet the requirements of the situation unless it recognizes the principle that t e public has a right to the uninterrupted service of transportation, and therefore a right to be heard when there is danger that the Nation may suffer great injury through the interruption of operations because of labor disputes. If these elements are not comprehended in proposed legislation, it would be better to gain further experience with the present organization for dealing with these questions before undertaking a change.
 
 The form of the organization of the Shipping Board was based originally on its functions as a semi judicial body in regulation of rates. During the war it was loaded with enormous administrative duties. It has been demonstrated time and again that this form of organization results in indecision, division of opinion and administrative functions, which make a wholly inadequate foundation for the conduct of a great business enterprise. The first principle in securing the objective set out by Congress in building up the American merchant marine upon the great trade routes and subsequently disposing of it into private operation can not proceed with effectiveness until the entire functions of the board are reorganized. The immediate requirement is to transfer into the Emergency Fleet, Corporation the whole responsibility of operation of the fleet and other property, leaving to the Shipping Board solely the duty of determining certain major policies which require deliberative action.
 The procedure under section 28 of the merchant marine act has created great difficulty and threatened friction during the past 12 months. Its attempted application developed not only great opposition from exporters, particularly as to burdens that may be imposed upon agricultural products, but also great anxiety in the different seaports as to the effect upon their relative rate structures. This trouble will certainly recur if action is attempted under this section. It is uncertain in some of its terms and of great difficulty in interpretation.
 It is my belief that action under this section should be suspended until the Congress can reconsider the entire question in the light of the experience that has been developed since its enactment.
 
 Nothing is so fundamental to the integrity of a republican form of government as honesty in all that relates to the conduct of elections. I am of the opinion that the national laws governing the choice of members of the Congress should be extended to include appropriate representation of the respective parties at the ballot box ant equality of representation on the various registration boards, wherever they exist.
 
 The docket of the Supreme Court is becoming congested. At the opening term last year it had 592 cases, while this year it had 687 cases. Justice long delayed is justice refused. Unless the court be given power by preliminary and summary consideration to determine the importance of cases, and by disposing of those which are not of public moment reserve its time for the more extended consideration of the remainder, the congestion of the docket is likely to increase. It is also desirable that Supreme Court should have power to improve and reform procedure in suits at law in the Federal courts through the adoption of appropriate rules. The Judiciary Committee of the Senate has reported favorably upon two bills providing for these reforms which should have the immediate favorable consideration of the Congress.
 I further recommend that provision be made for the appointment of a commission, to consist of two or three members of the Federal judiciary and as many members of the bar, to examine the present criminal code of procedure and recommend to the Congress measures which may reform and expedite court procedure in the administration and enforcement of our criminal laws.
 
 Pending before the Congress is a bill which has already passed one House providing for a reformatory to which could be committed first offenders and young men for the purpose of segregating them from contact with banned criminals and providing them with special training in order to reestablish in them the power to pursue a law-abiding existence in the social and economic life of the Nation. This is a matter of so much importance as to warrant the early attention of the present session. Further provision should also be made, for a like reason, for a separate reformatory for women.
 
 Representatives of the International Police Conference will bring to the attention of the Congress a proposal for the establishment of a national police bureau. Such action would provide a central point for gathering, compiling, and later distributing to local police authorities much information which would be helpful in the prevention and detection of crime. I believe this bureau is needed, and I recommend favorable consideration of this proposal.
 
 The welfare work of the District of Columbia is administered by several different boards dealing with charities and various correctional efforts. It would be an improvement if this work were consolidated and placed under the direction of a single commission.
 
 During the last session of the Congress legislation was introduced looking to the payment of the remaining claims generally referred to as the French spoliation claims. The Congress has provided for the payment of many similar claims. Those that remain unpaid have been long pending. The beneficiaries thereunder have every reason to expect payment. These claims have been examined by the Court of Claims and their validity and amount determined. The United States ought to pay its debts. I recommend action by the Congress which will permit of the payment of these remaining claims.
 
 Two very important policies have been adopted by this country which, while extending their benefits also in other directions, have been of the utmost importance to the wage earners. One of these is the protective tariff, which enables our people to live according to a better standard and receive a better rate of compensation than any people, any time, anywhere on earth, ever enjoyed. This saves the American market for the products of the American workmen. The other is a policy of more recent origin and seeks to shield our wage earners from the disastrous competition of a great influx of foreign peoples. This has been done by the restrictive immigration law. This saves the American job for the American workmen. I should like to see the administrative features of this law rendered a little more humane for the purpose of permitting those already here a greater latitude in securing admission of members of their own families. But I believe this law in principle is necessary and sound, and destined to increase greatly the public welfare. We must maintain our own economic position, we must defend our own national integrity.
 It is gratifying to report that the progress of industry, the enormous increase in individual productivity through labor-saving devices, and the high rate of wages have all combined to furnish our people in general with such an abundance not only of the necessaries but of the conveniences of life that we are by a natural evolution solving our problems of economic and social justice.
 
 These developments have brought about a very remarkable improvement in the condition of the negro race. Gradually, but surely, with the almost universal sympathy of those among whom they live, the colored people are working out their own destiny. I firmly believe that it is better for all concerned that they should be cheerfully accorded their full constitutional rights, that they should be protected from all of those impositions to which, from their position, they naturally fall a prey, especially from the crime of lynching and that they should receive every encouragement to become full partakers in all the blessings of our common American citizenship.
 
 The merit system has long been recognized as the correct basis for employment in our, civil service. I believe that first second, and third class postmasters, and without covering in the present membership tile field force of prohibition enforcement, should be brought within the classified service by statute law. Otherwise the Executive order of one administration is changed by the Executive order of another administration, and little real progress is made. Whatever its defects, the merit system is certainly to be preferred to the spoils system.
 
 One way to save public money would be to pass the pending bill for the reorganization of the various departments. This project has been pending for some time, and has had the most careful consideration of experts and the thorough study of a special congressional committee. This legislation is vital as a companion piece to the Budget law. Legal authority for a thorough reorganization of the Federal structure with some latitude of action to the Executive in the rearrangement of secondary functions would make for continuing economy in the shift of government activities which must follow every change in a developing country. Beyond this many of the independent agencies of the Government must be placed under responsible Cabinet officials, if we are to have safeguards of efficiency, economy, and probity.
 
 Little has developed in relation to our national defense which needs special attention. Progress is constantly being made in air navigation and requires encouragement and development. Army aviators have made a successful trip around the world, for which I recommend suitable recognition through provisions for promotion, compensation, and retirement. Under the direction of the Navy a new Zeppelin has been successfully brought from Europe across the Atlantic to our own country.
 Due to the efficient supervision of the Secretary of War the Army of the United States has been organized with a small body of Regulars and a moderate National Guard and Reserve. The defense test of September 12 demonstrated the efficiency of the operating plans. These methods and operations are well worthy of congressional support.
 Under the limitation of armaments treaty a large saving in outlay and a considerable decrease in maintenance of the Navy has been accomplished. We should maintain the policy of constantly working toward the full treaty strength of the Navy. Careful investigation is being made in this department of the relative importance of aircraft, surface and submarine vessels, in order that we may not fail to take advantage of all modern improvements for our national defense. A special commission also is investigating the problem of petroleum oil for the Navy, considering the best policy to insure the future supply of fuel oil and prevent the threatened drainage of naval oil reserves. Legislative action is required to carry on experiments in oil shale reduction, as large deposits of this type have been set aside for the use of the Navy.
 We have been constantly besought to engage in competitive armaments. Frequent reports will reach us of the magnitude of the military equipment of other, nations. We shall do well to be little impressed by such reports or such actions. Any nation undertaking to maintain a military establishment with aggressive and imperialistic designs will find itself severely handicapped in the economic development of the world. I believe thoroughly in the Army and Navy, in adequate defense and preparation. But I am opposed to any policy of competition in building and maintaining land or sea armaments.
 Our country has definitely relinquished the old standard of dealing with other countries by terror and force, and is definitely committed to the new standard of dealing with them through friendship and understanding. This new policy should be constantly kept in mind by the guiding forces of the Army and Navy, by the. Congress and by the country at large. I believe it holds a promise of great benefit to humanity. I shall resist any attempt to resort to the old methods and the old standards. I am especially solicitous that foreign nations should comprehend the candor and sincerity with which we have adopted this position. While we propose to maintain defensive and supplementary police forces by land and sea, and to train them through inspections and maneuvers upon appropriate occasions in order to maintain their efficiency, I wish every other nation to understand that this does not express any unfriendliness or convey any hostile intent. I want the armed forces of America to be considered by all peoples not as enemies but as friends as the contribution which is made by this country for the maintenance of the peace and security of the world.
 
 With the authorization for general hospitalization of the veterans of all wars provided during the present year, the care and treatment of those who have served their country in time of peril and the attitude of the Government toward them is not now so much one of needed legislation as one of careful, generous and humane administration. It will ever be recognized that their welfare is of the first concern and always entitled to the most solicitous consideration oil the part of their fellow citizens. They are organized in various associations, of which the chief and most representative is the American Legion. Through its officers the Legion will present to the Congress numerous suggestions for legislation. They cover such a wide variety of subjects that it is impossible to discuss them within the scope of this message. With many of the proposals I join in hearty approval and commend them all to the sympathetic investigation and consideration of the Congress.
 
 At no period in the past 12 years have our foreign relations been in such a satisfactory condition as they are at the present time. Our actions in the recent months have greatly strengthened the American policy of permanent peace with independence. The attitude which our Government took and maintained toward an adjustment of European reparations, by pointing out that it wits not a political but a business problem, has demonstrated its wisdom by its actual results. We desire to see Europe restored that it may resume its productivity in the increase of industry and its support in the advance of civilization. We look with great gratification at the hopeful prospect of recuperation in Europe through the Dawes plan. Such assistance as can be given through the action of the public authorities and of our private citizens, through friendly counsel and cooperation, and through economic and financial support, not for any warlike effort but for reproductive enterprise, not to provide means for unsound government financing but to establish sound business administration ' should be unhesitatingly provided.
 Ultimately nations, like individuals, can not depend upon each other but must depend upon themselves. Each one must work out its own salvation. We have every desire to help. But with all our resources we are powerless to save unless our efforts meet with a constructive response. The situation in our own country and all over the world is one Chat can be improved only by bard work and self-denial. It is necessary to reduce expenditures, increase savings and liquidate debts. It is in this direction that there lies the greatest hope of domestic tranquility and international peace. Our own country ought to finish the leading example in this effort. Our past adherence to this policy, our constant refusal to maintain a military establishment that could be thought to menace the security of others, our honorable dealings with other nations whether great or small, has left us in the almost constant enjoyment of peace.
 It is not necessary to stress the general desire of all the people of this country for the promotion of peace. It is the leading principle of all our foreign relations. We have on every occasion tried to cooperate to this end in all ways that were consistent with our proper independence and our traditional policies. It will be my constant effort to maintain these principles, and to reinforce them by all appropriate agreements and treaties. While we desire always to cooperate and to help, we are equally determined to be independent and free. Right and truth and justice and humanitarian efforts will have the moral support of this country all over the world. But we do not wish to become involved in the political controversies of others. Nor is the country disposed to become a member of the League of Nations or to assume the obligations imposed by its covenant.
 
 America has been one of the foremost nations in advocating tribunals for the settlement of international disputes of a justiciable character. Our representatives took a leading in those conferences which resulted in the establishment of e ague Tribunal, and later in providing for a Permanent Court of International Justice. I believe it would be for the advantage of this country and helpful to the stability of other nations for us to adhere to the protocol establishing, that court upon the conditions stated in the recommendation which is now before the Senate, and further that our country shall not be bound by advisory opinions which may be, rendered by the court upon questions which we have not voluntarily submitted for its judgment. This court would provide a practical and convenient tribunal before which we could go voluntarily, but to which we could not be summoned, for a determination of justiciable questions when they fail to be resolved by diplomatic negotiations.
 
 Many times I have expressed my desire to see the work of the Washington Conference on Limitation of Armaments appropriately supplemented by further agreements for a further reduction M for the purpose of diminishing the menace and waste of the competition in preparing instruments of international war. It has been and is my expectation that we might hopefully approach other great powers for further conference on this subject as soon as the carrying out of the present reparation plan as the established and settled policy of Europe has created a favorable opportunity. But on account of proposals which have already been made by other governments for a European conference, it will be necessary to wait to see what the outcome of their actions may be. I should not wish to propose or have representatives attend a conference which would contemplate commitments opposed to the freedom of action we desire to maintain unimpaired with respect to our purely domestic policies.
 
 Our country should also support efforts which are being made toward the codification of international law. We can look more hopefully, in the first instance, for research and studies that are likely to be productive of results, to a cooperation among representatives of the bar and members of international law institutes and societies, than to a conference of those who are technically representative of their respective governments, although, when projects have been developed, they must go to the governments for their approval. These expert professional studies are going on in certain quarters and should have our constant encouragement and approval.
 
 Much interest has of late been manifested in this country in the discussion of various proposals to outlaw aggressive war. I look with great sympathy upon the examination of this subject. It is in harmony with the traditional policy of our country, which is against aggressive war and for the maintenance of permanent and honorable peace. While, as I have said, we must safeguard our liberty to deal according to our own judgment with our domestic policies, we can not fail to view with sympathetic interest all progress to this desired end or carefully to study the measures that may be proposed to attain it.
 
 While we are desirous of promoting peace in every quarter of the globe, we have a special interest in the peace of this hemisphere. It is our constant desire that all causes of dispute in this area may be tranquilly and satisfactorily adjusted. Along with our desire for peace is the earnest hope for the increased prosperity of our sister republics of Latin America, and our constant purpose to promote cooperation with them which may be mutually beneficial and always inspired by the most cordial friendships.
 
 About $12,000,000,000 is due to our Government from abroad, mostly from European Governments. Great Britain, Finland, Hungary, Lithuania and Poland have negotiated settlements amounting close to $5,000,000,000. This represents the funding of over 42 per cent of the debt since the creation of the special Foreign Debt Commission. As the life of this commission is about to expire, its term should be extended. I am opposed to the cancellation of these debts and believe it for the best welfare of the world that they should be liquidated and paid as fast as possible. I do not favor oppressive measures, but unless money that is borrowed is repaid credit can not be secured in time of necessity, and there exists besides a moral obligation which our country can not ignore and no other country can evade. Terms and conditions may have to conform to differences in the financial abilities of the countries concerned, but the principle that each country should meet its obligation admits of no differences and is of universal application.
 It is axiomatic that our country can not stand still. It would seem to be perfectly plain from recent events that it is determined to go forward. But it wants no pretenses, it wants no vagaries. It is determined to advance in an orderly, sound and common-sense way. It does not propose to abandon the theory of the Declaration that the people have inalienable rights which no majority and no power of government can destroy. It does not propose to abandon the practice of the Constitution that provides for the protection of these rights. It believes that within these limitations, which are imposed not by the fiat of man but by the law of the Creator, self-government is just and wise. It is convinced that it will be impossible for the people to provide their own government unless they continue to own their own property.
 These are the very foundations of America. On them has been erected a Government of freedom and equality, of justice and mercy, of education and charity. Living under it and supporting it the people have come into great possessions on the material and spiritual sides of life. I want to continue in this direction. I know that the Congress shares with me that desire. I want our institutions to be more and more expressive of these principles. I want the people of all the earth to see in the American flag the symbol of a Government which intends no oppression at home and no aggression abroad, which in the spirit of a common brotherhood provides assistance in time of distress.
The present state of the Union, upon which it is customary for the President to report to the Congress under the provisions of the Constitution, is such that it may be regarded with encouragement and satisfaction by every American. Our country is almost unique in its ability to discharge fully and promptly all its obligations at home and abroad, and provide for all its inhabitants an increase in material resources, in intellectual vigor and in moral power. The Nation holds a position unsurpassed in all former human experience. This does not mean that we do not have any problems. It is elementary that the increasing breadth of our experience necessarily increases the problems of our national life. But it does mean that if all will but apply ourselves industriously and honestly, we have ample powers with which to meet our problems and provide for I heir speedy solution. I do not profess that we can secure an era of perfection in human existence, but we can provide an era of peace and prosperity, attended with freedom and justice and made more and more satisfying by the ministrations of the charities and humanities of life. Our domestic problems are for the most part economic. We have our enormous debt to pay, and we are paying it. We have the high cost of government to diminish, and we are diminishing it. We have a heavy burden of taxation to reduce, and we are reducing it. But while remarkable progress has been made in these directions, the work is yet far from accomplished. We still owe over $21,000,000,000, the cost of the National Government is still about $3,500,000,000, and the national taxes still amount to about $27 for each one of our inhabitants. There yet exists this enormous field for the application of economy. In my opinion the Government can do more to remedy the economic ills of the people by a system of rigid economy in public expenditure than can be accomplished through any other action. The costs of our national and local governments combined now stand at a sum close to $100 for each inhabitant of the land. A little less than one-third of this is represented by national expenditure, and a little more than two-thirds by local expenditure. It is an ominous fact that only the National Government is reducing its debt. Others are increasing theirs at about $1,000,000,000 each year. The depression that overtook business, the disaster experienced in agriculture, the lack of employment and the terrific shrinkage in all values which our country experienced in a most acute form in 1920, resulted in no small measure from the prohibitive taxes which were then levied on all productive effort. The establishment of a system of drastic economy in public expenditure, which has enabled us to pay off about one-fifth of the national debt since 1919, and almost cut in two the national tax burden since 1921, has been one of the main causes in reestablishing a prosperity which has come to include within its benefits almost every one of our inhabitants. Economy reaches everywhere. It carries a blessing to everybody. The fallacy of the claim that the costs of government are borne by the rich and those who make a direct contribution to the National Treasury can not be too often exposed. No system has been devised, I do not think any system could be devised, under which any person living in this country could escape being affected by the cost of our government. It has a direct effect both upon the rate and the purchasing power of wages. It is felt in the price of those prime necessities of existence, food, clothing, fuel and shelter. It would appear to be elementary that the more the Government expends the more it must require every producer to contribute out of his production to the Public Treasury, and the less he will have for his own benefit. The continuing costs of public administration can be met in only one way -- by the work of the people. The higher they become, the more the people must work for the Government. The less they are, the more the people can work for themselves. The present estimated margin between public receipts and expenditures for this fiscal year is very small. Perhaps the most important work that this session of the Congress can do is to continue a policy of economy and further reduce the cost of government, in order that we may have a reduction of taxes for the next fiscal year. Nothing is more likely to produce that public confidence which is the forerunner and the mainstay of prosperity, encourage and enlarge business opportunity with ample opportunity for employment at good wages, provide a larger market for agricultural products, and put our country in a stronger position to be able to meet the world competition in trade, than a continuing policy of economy. Of course necessary costs must be met, proper functions of the Government performed, and constant investments for capital account and reproductive effort must be carried on by our various departments. But the people must know that their Government is placing upon them no unnecessary burden. Everyone desires a reduction of taxes, and there is a great preponderance of sentiment in favor of taxation reform. When I approved the present tax law, I stated publicly that I did so in spite of certain provisions which I believed unwise and harmful. One of the most glaring of these was the making public of the amounts assessed against different income-tax payers. Although that damage has now been done, I believe its continuation to be detrimental To the public welfare and bound to decrease public revenues, so that it ought to be repealed. Anybody can reduce taxes, but it is not so easy to stand in the gap and resist the passage of increasing appropriation bills which would make tax reduction impossible. It will be very easy to measure the strength of the attachment to reduced taxation by the power with which increased appropriations are resisted. If at the close of the present session the Congress has kept within the budget which I propose to present, it will then be possible to have a moderate amount of tax reduction and all the tax reform that the Congress may wish for during the next fiscal year. The country is now feeling the direct stimulus which came from the passage of the last revenue bill, and under the assurance of a reasonable system of taxation there is every prospect of an era of prosperity of unprecedented proportions. But it would be idle to expect any such results unless business can continue free from excess profits taxation and be accorded a system of surtaxes at rates which have for their object not the punishment of success or the discouragement of business, but the production of the greatest amount of revenue from large incomes. I am convinced that the larger incomes of the country would actually yield more revenue to the Government if the basis of taxation were scientifically revised downward. Moreover the effect of the present method of this taxation is to increase the cost of interest. on productive enterprise and to increase the burden of rent. It is altogether likely that such reduction would so encourage and stimulate investment that it would firmly establish our country in the economic leadership of the world. Meantime our internal development should go on. Provision should be made for flood control of such rivers as the Mississippi and the Colorado, and for the opening up of our inland waterways to commerce. Consideration is due to the project of better navigation from the Great Lakes to the Gulf. Every effort is being made to promote an agreement with Canada to build the, St. Lawrence waterway. There are pending before the Congress bills for further development of the Mississippi Basin, for the taking over of the Cape Cod Canal in accordance with a moral obligation which seems to have been incurred during the war, and for the improvement of harbors on both the Pacific and the Atlantic coasts. While this last should be divested of some of its projects and we must proceed slowly, these bills in general have my approval. Such works are productive of wealth and in the long run tend to a reduction of the tax burden. Our country has a well defined policy of reclamation established under statutory authority. This policy should be continued and made a self-sustaining activity administered in a manner that will meet local requirements and bring our and lands into a profitable state of cultivation as fast as there is a market for their products. Legislation is pending based on the report of the Fact Finding Commission for the proper relief of those needing extension of time in which to meet their payments on irrigated land, and for additional amendments and reforms of our reclamation laws, which are all exceedingly important and should be enacted at once. No more important development has taken place in the last year than the beginning of a restoration of agriculture to a prosperous condition. We must permit no division of classes in this country, with one occupation striving to secure advantage over another. Each must proceed under open opportunities and with a fair prospect of economic equality. The Government can not successfully insure prosperity or fix prices by legislative fiat. Every business has its risk and its times of depression. It is well known that in the long run there will be a more even prosperity and a more satisfactory range of prices under the natural working out of economic laws than when the Government undertakes the artificial support of markets and industries. Still we can so order our affairs, so protect our own people from foreign competition, so arrange our national finances, so administer our monetary system, so provide for the extension of credits, so improve methods of distribution, as to provide a better working machinery for the transaction of the business of the Nation with the least possible friction and loss. The Government has been constantly increasing its efforts in these directions for the relief and permanent establishment of agriculture on a sound and equal basis with other business. It is estimated that the value of the crops for this harvest year may reach $13,000,000,000, which is an increase of over $3,000,000,000 in three years. It compares with $7,100,000,000 in 1913, arid if we make deduction from the figures of 1924 for the comparatively decreased value of the dollar, the yield this year still exceeds 1913 in purchasing power by over $1,000,000,000, and in this interval there has been no increase in the number of farmers. Mostly by his own effort the farmer has decreased the cost of production. A marked increase in the price of his products and some decrease in the price of his supplies has brought him about to a parity with the rest of the Nation. The crop area of this season is estimated at 370,000,000 acres, which is a decline of 3,000,000 acres from last year, and 6,000,000 acres from 1919. This has been a normal and natural application of economic laws, which has placed agriculture on a foundation which is undeniably sound and beginning to be satisfactory. A decrease in the world supply of wheat has resulted in a very large increase in the price of that commodity. The position of all agricultural products indicates a better balanced supply, but we can not yet conclude that agriculture is recovered from the effects of the war period or that it is permanently on a prosperous basis. The cattle industry has not yet recovered and in some sections has been suffering from dry weather. Every effort must be made both by Government activity and by private agencies to restore and maintain agriculture to a complete normal relationship with other industries. It was on account of past depression, and in spite of present more encouraging conditions, that I have assembled an Agricultural Conference made up of those who are representative of this great industry in both its operating and economic sides. Everyone knows that the great need of the farmers is markets. The country is not suffering on the side of production. Almost the entire difficulty is on the side of distribution. This reaches back, of course, to unit costs and diversification, and many allied subjects. It is exceedingly intricate, for our domestic and foreign trade, transportation and banking, and in fact our entire economic system, are closely related to it. In time for action at this session, I hope to report to the Congress such legislative remedies as the conference may recommend. An appropriation should be made to defray their necessary expenses. The production of nitrogen for plant food in peace and explosives in war is more and more important. It is one of the chief sustaining elements of life. It is estimated that soil exhaustion each year is represented by about 9,000,000 tons and replenishment by 5,450,000 tons. The deficit of 3,550,000 tons is reported to represent the impairment of 118,000,000 acres of farm lands each year. To meet these necessities the Government has been developing a water power project at Muscle Shoals to be equipped to produce nitrogen for explosives and fertilizer. It is my opinion that the support of agriculture is the chief problem to consider in connection with this property. It could by no means supply the present needs for nitrogen, but it would help and its development would encourage bringing other water powers into like use. Several offers have been made for the purchase of this property. Probably none of them represent final terms. Much costly experimentation is necessary to produce commercial nitrogen. For that reason it is a field better suited to private enterprise than to Government operation. I should favor a sale of this property, or long-time lease, tinder rigid guaranties of commercial nitrogen production at reasonable prices for agricultural use. There would be a surplus of power for many years over any possibility of its application to a developing manufacture of nitrogen. It may be found advantageous to dispose of the right to surplus power separately with such reservations as will allow its gradual withdrawal and application to nitrogen manufacture. A subcommittee of the Committees on Agriculture should investigate this field and negotiate with prospective purchasers. If no advantageous offer be made, the development should continue and the plant should be dedicated primarily to the production of materials for the fertilization of the soil. The railways during the past year have made still further progress in recuperation from the war, with large rains in efficiency and ability expeditiously to handle the traffic of the country. We have now passed through several periods of peak traffic without the car shortages which so frequently in the past have brought havoc to our agriculture and industries. The condition of many of our great freight terminals is still one of difficulty and results in imposing, large costs on the public for inward-bound freight, and on the railways for outward-bound freight. Owing to the growth of our large cities and the great increase in the volume of traffic, particularly in perishables, the problem is not only difficult of solution, but in some cases not wholly solvable by railway action alone. In my message last year I emphasized the necessity for further legislation with a view to expediting the consolidation of our rail ways into larger systems. The principle of Government control of rates and profits, now thoroughly imbedded in our governmental attitude toward natural monopolies such as the railways, at once eliminates the need of competition by small units as a method of rate adjustment. Competition must be preserved as a stimulus to service , but this will exist and can be increased tinder enlarged systems. Consequently the consolidation of the railways into larger units for the purpose of securing the substantial values to the public which will come from larger operation has been the logical conclusion of Congress in its previous enactments, and is also supported by the best opinion in the country. Such consolidation will assure not only a greater element of competition as to service, but it will afford economy in operation, greater stability in railway earnings, and more economical financing. It opens large possibilities of better equalization of rates between different classes of traffic so as to relieve undue burdens upon agricultural products and raw materials generally, which are now not possible without ruin to small units owing to the lack of diversity of traffic. It would also tend to equalize earnings in such fashion as to reduce the importance of section 15A, at which criticism, often misapplied, has been directed. A smaller number of units would offer less difficulties in labor adjustments and would contribute much to the, solution of terminal difficulties. The consolidations need to be carried out with due regard to public interest and to the rights and established life of various communities in our country. It does not seem to me necessary that we endeavor to anticipate any final plan or adhere to an artificial and unchangeable project which shall stipulate a fixed number of systems, but rather we ought to approach the problem with such a latitude of action that it can be worked out step by step in accordance with a comprehensive consideration of public interest. Whether the number of ultimate systems shall be more or less seems to me can only be determined by time and actual experience in the development of such consolidations. Those portions of the present law contemplating consolidations ore not, sufficiently effective in producing expeditious action and need amplification of the authority of the Interstate Commerce Commission, particularly in affording a period for voluntary proposals to the commission and in supplying Government pressure to secure action after the expiration of such a period. There are other proposals before Congress for amending the transportation acts. One of these contemplates a revision of the method of valuation for rate-making purposes to be followed by a renewed valuation of the railways. The valuations instituted by the Interstate Commerce Commission 10 years ago have not yet been completed. They have cost the Government an enormous sum, and they have imposed great expenditure upon the railways, most of which has in effect come out of the public in increased rates. This work should not be abandoned or supplanted until its results are known and can be considered. Another matter before the Congress is legislation affecting the labor sections of the transportation act. Much criticism has been directed at the workings of this section and experience has shown that some useful amendment could be made to these provisions. It would be helpful if a plan could be adopted which, while retaining the practice of systematic collective bargaining with conciliation voluntary arbitration of labor differences, could also provide simplicity in relations and more direct local responsibility of employees and managers. But such legislation will not meet the requirements of the situation unless it recognizes the principle that t e public has a right to the uninterrupted service of transportation, and therefore a right to be heard when there is danger that the Nation may suffer great injury through the interruption of operations because of labor disputes. If these elements are not comprehended in proposed legislation, it would be better to gain further experience with the present organization for dealing with these questions before undertaking a change. The form of the organization of the Shipping Board was based originally on its functions as a semi judicial body in regulation of rates. During the war it was loaded with enormous administrative duties. It has been demonstrated time and again that this form of organization results in indecision, division of opinion and administrative functions, which make a wholly inadequate foundation for the conduct of a great business enterprise. The first principle in securing the objective set out by Congress in building up the American merchant marine upon the great trade routes and subsequently disposing of it into private operation can not proceed with effectiveness until the entire functions of the board are reorganized. The immediate requirement is to transfer into the Emergency Fleet, Corporation the whole responsibility of operation of the fleet and other property, leaving to the Shipping Board solely the duty of determining certain major policies which require deliberative action. The procedure under section 28 of the merchant marine act has created great difficulty and threatened friction during the past 12 months. Its attempted application developed not only great opposition from exporters, particularly as to burdens that may be imposed upon agricultural products, but also great anxiety in the different seaports as to the effect upon their relative rate structures. This trouble will certainly recur if action is attempted under this section. It is uncertain in some of its terms and of great difficulty in interpretation. It is my belief that action under this section should be suspended until the Congress can reconsider the entire question in the light of the experience that has been developed since its enactment. Nothing is so fundamental to the integrity of a republican form of government as honesty in all that relates to the conduct of elections. I am of the opinion that the national laws governing the choice of members of the Congress should be extended to include appropriate representation of the respective parties at the ballot box ant equality of representation on the various registration boards, wherever they exist. The docket of the Supreme Court is becoming congested. At the opening term last year it had 592 cases, while this year it had 687 cases. Justice long delayed is justice refused. Unless the court be given power by preliminary and summary consideration to determine the importance of cases, and by disposing of those which are not of public moment reserve its time for the more extended consideration of the remainder, the congestion of the docket is likely to increase. It is also desirable that Supreme Court should have power to improve and reform procedure in suits at law in the Federal courts through the adoption of appropriate rules. The Judiciary Committee of the Senate has reported favorably upon two bills providing for these reforms which should have the immediate favorable consideration of the Congress. I further recommend that provision be made for the appointment of a commission, to consist of two or three members of the Federal judiciary and as many members of the bar, to examine the present criminal code of procedure and recommend to the Congress measures which may reform and expedite court procedure in the administration and enforcement of our criminal laws. Pending before the Congress is a bill which has already passed one House providing for a reformatory to which could be committed first offenders and young men for the purpose of segregating them from contact with banned criminals and providing them with special training in order to reestablish in them the power to pursue a law-abiding existence in the social and economic life of the Nation. This is a matter of so much importance as to warrant the early attention of the present session. Further provision should also be made, for a like reason, for a separate reformatory for women. Representatives of the International Police Conference will bring to the attention of the Congress a proposal for the establishment of a national police bureau. Such action would provide a central point for gathering, compiling, and later distributing to local police authorities much information which would be helpful in the prevention and detection of crime. I believe this bureau is needed, and I recommend favorable consideration of this proposal. The welfare work of the District of Columbia is administered by several different boards dealing with charities and various correctional efforts. It would be an improvement if this work were consolidated and placed under the direction of a single commission. During the last session of the Congress legislation was introduced looking to the payment of the remaining claims generally referred to as the French spoliation claims. The Congress has provided for the payment of many similar claims. Those that remain unpaid have been long pending. The beneficiaries thereunder have every reason to expect payment. These claims have been examined by the Court of Claims and their validity and amount determined. The United States ought to pay its debts. I recommend action by the Congress which will permit of the payment of these remaining claims. Two very important policies have been adopted by this country which, while extending their benefits also in other directions, have been of the utmost importance to the wage earners. One of these is the protective tariff, which enables our people to live according to a better standard and receive a better rate of compensation than any people, any time, anywhere on earth, ever enjoyed. This saves the American market for the products of the American workmen. The other is a policy of more recent origin and seeks to shield our wage earners from the disastrous competition of a great influx of foreign peoples. This has been done by the restrictive immigration law. This saves the American job for the American workmen. I should like to see the administrative features of this law rendered a little more humane for the purpose of permitting those already here a greater latitude in securing admission of members of their own families. But I believe this law in principle is necessary and sound, and destined to increase greatly the public welfare. We must maintain our own economic position, we must defend our own national integrity. It is gratifying to report that the progress of industry, the enormous increase in individual productivity through labor-saving devices, and the high rate of wages have all combined to furnish our people in general with such an abundance not only of the necessaries but of the conveniences of life that we are by a natural evolution solving our problems of economic and social justice. These developments have brought about a very remarkable improvement in the condition of the negro race. Gradually, but surely, with the almost universal sympathy of those among whom they live, the colored people are working out their own destiny. I firmly believe that it is better for all concerned that they should be cheerfully accorded their full constitutional rights, that they should be protected from all of those impositions to which, from their position, they naturally fall a prey, especially from the crime of lynching and that they should receive every encouragement to become full partakers in all the blessings of our common American citizenship. The merit system has long been recognized as the correct basis for employment in our, civil service. I believe that first second, and third class postmasters, and without covering in the present membership tile field force of prohibition enforcement, should be brought within the classified service by statute law. Otherwise the Executive order of one administration is changed by the Executive order of another administration, and little real progress is made. Whatever its defects, the merit system is certainly to be preferred to the spoils system. One way to save public money would be to pass the pending bill for the reorganization of the various departments. This project has been pending for some time, and has had the most careful consideration of experts and the thorough study of a special congressional committee. This legislation is vital as a companion piece to the Budget law. Legal authority for a thorough reorganization of the Federal structure with some latitude of action to the Executive in the rearrangement of secondary functions would make for continuing economy in the shift of government activities which must follow every change in a developing country. Beyond this many of the independent agencies of the Government must be placed under responsible Cabinet officials, if we are to have safeguards of efficiency, economy, and probity. Little has developed in relation to our national defense which needs special attention. Progress is constantly being made in air navigation and requires encouragement and development. Army aviators have made a successful trip around the world, for which I recommend suitable recognition through provisions for promotion, compensation, and retirement. Under the direction of the Navy a new Zeppelin has been successfully brought from Europe across the Atlantic to our own country. Due to the efficient supervision of the Secretary of War the Army of the United States has been organized with a small body of Regulars and a moderate National Guard and Reserve. The defense test of September 12 demonstrated the efficiency of the operating plans. These methods and operations are well worthy of congressional support. Under the limitation of armaments treaty a large saving in outlay and a considerable decrease in maintenance of the Navy has been accomplished. We should maintain the policy of constantly working toward the full treaty strength of the Navy. Careful investigation is being made in this department of the relative importance of aircraft, surface and submarine vessels, in order that we may not fail to take advantage of all modern improvements for our national defense. A special commission also is investigating the problem of petroleum oil for the Navy, considering the best policy to insure the future supply of fuel oil and prevent the threatened drainage of naval oil reserves. Legislative action is required to carry on experiments in oil shale reduction, as large deposits of this type have been set aside for the use of the Navy. We have been constantly besought to engage in competitive armaments. Frequent reports will reach us of the magnitude of the military equipment of other, nations. We shall do well to be little impressed by such reports or such actions. Any nation undertaking to maintain a military establishment with aggressive and imperialistic designs will find itself severely handicapped in the economic development of the world. I believe thoroughly in the Army and Navy, in adequate defense and preparation. But I am opposed to any policy of competition in building and maintaining land or sea armaments. Our country has definitely relinquished the old standard of dealing with other countries by terror and force, and is definitely committed to the new standard of dealing with them through friendship and understanding. This new policy should be constantly kept in mind by the guiding forces of the Army and Navy, by the. Congress and by the country at large. I believe it holds a promise of great benefit to humanity. I shall resist any attempt to resort to the old methods and the old standards. I am especially solicitous that foreign nations should comprehend the candor and sincerity with which we have adopted this position. While we propose to maintain defensive and supplementary police forces by land and sea, and to train them through inspections and maneuvers upon appropriate occasions in order to maintain their efficiency, I wish every other nation to understand that this does not express any unfriendliness or convey any hostile intent. I want the armed forces of America to be considered by all peoples not as enemies but as friends as the contribution which is made by this country for the maintenance of the peace and security of the world. With the authorization for general hospitalization of the veterans of all wars provided during the present year, the care and treatment of those who have served their country in time of peril and the attitude of the Government toward them is not now so much one of needed legislation as one of careful, generous and humane administration. It will ever be recognized that their welfare is of the first concern and always entitled to the most solicitous consideration oil the part of their fellow citizens. They are organized in various associations, of which the chief and most representative is the American Legion. Through its officers the Legion will present to the Congress numerous suggestions for legislation. They cover such a wide variety of subjects that it is impossible to discuss them within the scope of this message. With many of the proposals I join in hearty approval and commend them all to the sympathetic investigation and consideration of the Congress. At no period in the past 12 years have our foreign relations been in such a satisfactory condition as they are at the present time. Our actions in the recent months have greatly strengthened the American policy of permanent peace with independence. The attitude which our Government took and maintained toward an adjustment of European reparations, by pointing out that it wits not a political but a business problem, has demonstrated its wisdom by its actual results. We desire to see Europe restored that it may resume its productivity in the increase of industry and its support in the advance of civilization. We look with great gratification at the hopeful prospect of recuperation in Europe through the Dawes plan. Such assistance as can be given through the action of the public authorities and of our private citizens, through friendly counsel and cooperation, and through economic and financial support, not for any warlike effort but for reproductive enterprise, not to provide means for unsound government financing but to establish sound business administration ' should be unhesitatingly provided. Ultimately nations, like individuals, can not depend upon each other but must depend upon themselves. Each one must work out its own salvation. We have every desire to help. But with all our resources we are powerless to save unless our efforts meet with a constructive response. The situation in our own country and all over the world is one Chat can be improved only by bard work and self-denial. It is necessary to reduce expenditures, increase savings and liquidate debts. It is in this direction that there lies the greatest hope of domestic tranquility and international peace. Our own country ought to finish the leading example in this effort. Our past adherence to this policy, our constant refusal to maintain a military establishment that could be thought to menace the security of others, our honorable dealings with other nations whether great or small, has left us in the almost constant enjoyment of peace. It is not necessary to stress the general desire of all the people of this country for the promotion of peace. It is the leading principle of all our foreign relations. We have on every occasion tried to cooperate to this end in all ways that were consistent with our proper independence and our traditional policies. It will be my constant effort to maintain these principles, and to reinforce them by all appropriate agreements and treaties. While we desire always to cooperate and to help, we are equally determined to be independent and free. Right and truth and justice and humanitarian efforts will have the moral support of this country all over the world. But we do not wish to become involved in the political controversies of others. Nor is the country disposed to become a member of the League of Nations or to assume the obligations imposed by its covenant. America has been one of the foremost nations in advocating tribunals for the settlement of international disputes of a justiciable character. Our representatives took a leading in those conferences which resulted in the establishment of e ague Tribunal, and later in providing for a Permanent Court of International Justice. I believe it would be for the advantage of this country and helpful to the stability of other nations for us to adhere to the protocol establishing, that court upon the conditions stated in the recommendation which is now before the Senate, and further that our country shall not be bound by advisory opinions which may be, rendered by the court upon questions which we have not voluntarily submitted for its judgment. This court would provide a practical and convenient tribunal before which we could go voluntarily, but to which we could not be summoned, for a determination of justiciable questions when they fail to be resolved by diplomatic negotiations. Many times I have expressed my desire to see the work of the Washington Conference on Limitation of Armaments appropriately supplemented by further agreements for a further reduction M for the purpose of diminishing the menace and waste of the competition in preparing instruments of international war. It has been and is my expectation that we might hopefully approach other great powers for further conference on this subject as soon as the carrying out of the present reparation plan as the established and settled policy of Europe has created a favorable opportunity. But on account of proposals which have already been made by other governments for a European conference, it will be necessary to wait to see what the outcome of their actions may be. I should not wish to propose or have representatives attend a conference which would contemplate commitments opposed to the freedom of action we desire to maintain unimpaired with respect to our purely domestic policies. Our country should also support efforts which are being made toward the codification of international law. We can look more hopefully, in the first instance, for research and studies that are likely to be productive of results, to a cooperation among representatives of the bar and members of international law institutes and societies, than to a conference of those who are technically representative of their respective governments, although, when projects have been developed, they must go to the governments for their approval. These expert professional studies are going on in certain quarters and should have our constant encouragement and approval. Much interest has of late been manifested in this country in the discussion of various proposals to outlaw aggressive war. I look with great sympathy upon the examination of this subject. It is in harmony with the traditional policy of our country, which is against aggressive war and for the maintenance of permanent and honorable peace. While, as I have said, we must safeguard our liberty to deal according to our own judgment with our domestic policies, we can not fail to view with sympathetic interest all progress to this desired end or carefully to study the measures that may be proposed to attain it. While we are desirous of promoting peace in every quarter of the globe, we have a special interest in the peace of this hemisphere. It is our constant desire that all causes of dispute in this area may be tranquilly and satisfactorily adjusted. Along with our desire for peace is the earnest hope for the increased prosperity of our sister republics of Latin America, and our constant purpose to promote cooperation with them which may be mutually beneficial and always inspired by the most cordial friendships. About $12,000,000,000 is due to our Government from abroad, mostly from European Governments. Great Britain, Finland, Hungary, Lithuania and Poland have negotiated settlements amounting close to $5,000,000,000. This represents the funding of over 42 per cent of the debt since the creation of the special Foreign Debt Commission. As the life of this commission is about to expire, its term should be extended. I am opposed to the cancellation of these debts and believe it for the best welfare of the world that they should be liquidated and paid as fast as possible. I do not favor oppressive measures, but unless money that is borrowed is repaid credit can not be secured in time of necessity, and there exists besides a moral obligation which our country can not ignore and no other country can evade. Terms and conditions may have to conform to differences in the financial abilities of the countries concerned, but the principle that each country should meet its obligation admits of no differences and is of universal application. It is axiomatic that our country can not stand still. It would seem to be perfectly plain from recent events that it is determined to go forward. But it wants no pretenses, it wants no vagaries. It is determined to advance in an orderly, sound and common-sense way. It does not propose to abandon the theory of the Declaration that the people have inalienable rights which no majority and no power of government can destroy. It does not propose to abandon the practice of the Constitution that provides for the protection of these rights. It believes that within these limitations, which are imposed not by the fiat of man but by the law of the Creator, self-government is just and wise. It is convinced that it will be impossible for the people to provide their own government unless they continue to own their own property. These are the very foundations of America. On them has been erected a Government of freedom and equality, of justice and mercy, of education and charity. Living under it and supporting it the people have come into great possessions on the material and spiritual sides of life. I want to continue in this direction. I know that the Congress shares with me that desire. I want our institutions to be more and more expressive of these principles. I want the people of all the earth to see in the American flag the symbol of a Government which intends no oppression at home and no aggression abroad, which in the spirit of a common brotherhood provides assistance in time of distress.
the present state of the union upon which it is customary for the president to report to the congress under the provisions of the constitution is such that it may be regarded with encouragement and satisfaction by every american our country is almost unique in its ability to discharge fully and promptly all its obligations at home and abroad and provide for all its inhabitants an increase in material resources in intellectual vigor and in moral power the nation holds a position unsurpassed in all former human experience this does not mean that we do not have any problems it is elementary that the increasing breadth of our experience necessarily increases the problems of our national life but it does mean that if all will but apply ourselves industriously and honestly we have ample powers with which to meet our problems and provide for i heir speedy solution i do not profess that we can secure an era of perfection in human existence but we can provide an era of peace and prosperity attended with freedom and justice and made more and more satisfying by the ministrations of the charities and humanities of life our domestic problems are for the most part economic we have our enormous debt to pay and we are paying it we have the high cost of government to diminish and we are diminishing it we have a heavy burden of taxation to reduce and we are reducing it but while remarkable progress has been made in these directions the work is yet far from accomplished we still owe over the cost of the national government is still about and the national taxes still amount to about 27 for each one of our inhabitants there yet exists this enormous field for the application of economy in my opinion the government can do more to remedy the economic ills of the people by a system of rigid economy in public expenditure than can be accomplished through any other action the costs of our national and local governments combined now stand at a sum close to 100 for each inhabitant of the land a little less than of this is represented by national expenditure and a little more than by local expenditure it is an ominous fact that only the national government is reducing its debt others are increasing theirs at about each year the depression that overtook business the disaster experienced in agriculture the lack of employment and the terrific shrinkage in all values which our country experienced in a most acute form in 1920 resulted in no small measure from the prohibitive taxes which were then levied on all productive effort the establishment of a system of drastic economy in public expenditure which has enabled us to pay off about of the national debt since 1919 and almost cut in two the national tax burden since 1921 has been one of the main causes in reestablishing a prosperity which has come to include within its benefits almost every one of our inhabitants economy reaches everywhere it carries a blessing to everybody the fallacy of the claim that the costs of government are borne by the rich and those who make a direct contribution to the national treasury can not be too often exposed no system has been devised i do not think any system could be devised under which any person living in this country could escape being affected by the cost of our government it has a direct effect both upon the rate and the purchasing power of wages it is felt in the price of those prime necessities of existence food clothing fuel and shelter it would appear to be elementary that the more the government expends the more it must require every producer to contribute out of his production to the public treasury and the less he will have for his own benefit the continuing costs of public administration can be met in only one way by the work of the people the higher they become the more the people must work for the government the less they are the more the people can work for themselves the present estimated margin between public receipts and expenditures for this fiscal year is very small perhaps the most important work that this session of the congress can do is to continue a policy of economy and further reduce the cost of government in order that we may have a reduction of taxes for the next fiscal year nothing is more likely to produce that public confidence which is the forerunner and the mainstay of prosperity encourage and enlarge business opportunity with ample opportunity for employment at good wages provide a larger market for agricultural products and put our country in a stronger position to be able to meet the world competition in trade than a continuing policy of economy of course necessary costs must be met proper functions of the government performed and constant investments for capital account and reproductive effort must be carried on by our various departments but the people must know that their government is placing upon them no unnecessary burden everyone desires a reduction of taxes and there is a great preponderance of sentiment in favor of taxation reform when i approved the present tax law i stated publicly that i did so in spite of certain provisions which i believed unwise and harmful one of the most glaring of these was the making public of the amounts assessed against different payers although that damage has now been done i believe its continuation to be detrimental to the public welfare and bound to decrease public revenues so that it ought to be repealed anybody can reduce taxes but it is not so easy to stand in the gap and resist the passage of increasing appropriation bills which would make tax reduction impossible it will be very easy to measure the strength of the attachment to reduced taxation by the power with which increased appropriations are resisted if at the close of the present session the congress has kept within the budget which i propose to present it will then be possible to have a moderate amount of tax reduction and all the tax reform that the congress may wish for during the next fiscal year the country is now feeling the direct stimulus which came from the passage of the last revenue bill and under the assurance of a reasonable system of taxation there is every prospect of an era of prosperity of unprecedented proportions but it would be idle to expect any such results unless business can continue free from excess profits taxation and be accorded a system of surtaxes at rates which have for their object not the punishment of success or the discouragement of business but the production of the greatest amount of revenue from large incomes i am convinced that the larger incomes of the country would actually yield more revenue to the government if the basis of taxation were scientifically revised downward moreover the effect of the present method of this taxation is to increase the cost of interest on productive enterprise and to increase the burden of rent it is altogether likely that such reduction would so encourage and stimulate investment that it would firmly establish our country in the economic leadership of the world meantime our internal development should go on provision should be made for flood control of such rivers as the mississippi and the colorado and for the opening up of our inland waterways to commerce consideration is due to the project of better navigation from the great lakes to the gulf every effort is being made to promote an agreement with canada to build the lawrence waterway there are pending before the congress bills for further development of the mississippi basin for the taking over of the cape cod canal in accordance with a moral obligation which seems to have been incurred during the war and for the improvement of harbors on both the pacific and the atlantic coasts while this last should be divested of some of its projects and we must proceed slowly these bills in general have my approval such works are productive of wealth and in the long run tend to a reduction of the tax burden our country has a well defined policy of reclamation established under statutory authority this policy should be continued and made a activity administered in a manner that will meet local requirements and bring our and lands into a profitable state of cultivation as fast as there is a market for their products legislation is pending based on the report of the fact finding commission for the proper relief of those needing extension of time in which to meet their payments on irrigated land and for additional amendments and reforms of our reclamation laws which are all exceedingly important and should be enacted at once no more important development has taken place in the last year than the beginning of a restoration of agriculture to a prosperous condition we must permit no division of classes in this country with one occupation striving to secure advantage over another each must proceed under open opportunities and with a fair prospect of economic equality the government can not successfully insure prosperity or fix prices by legislative fiat every business has its risk and its times of depression it is well known that in the long run there will be a more even prosperity and a more satisfactory range of prices under the natural working out of economic laws than when the government undertakes the artificial support of markets and industries still we can so order our affairs so protect our own people from foreign competition so arrange our national finances so administer our monetary system so provide for the extension of credits so improve methods of distribution as to provide a better working machinery for the transaction of the business of the nation with the least possible friction and loss the government has been constantly increasing its efforts in these directions for the relief and permanent establishment of agriculture on a sound and equal basis with other business it is estimated that the value of the crops for this harvest year may reach which is an increase of over in three years it compares with in 1913 arid if we make deduction from the figures of 1924 for the comparatively decreased value of the dollar the yield this year still exceeds 1913 in purchasing power by over and in this interval there has been no increase in the number of farmers mostly by his own effort the farmer has decreased the cost of production a marked increase in the price of his products and some decrease in the price of his supplies has brought him about to a parity with the rest of the nation the crop area of this season is estimated at acres which is a decline of acres from last year and acres from 1919 this has been a normal and natural application of economic laws which has placed agriculture on a foundation which is undeniably sound and beginning to be satisfactory a decrease in the world supply of wheat has resulted in a very large increase in the price of that commodity the position of all agricultural products indicates a better balanced supply but we can not yet conclude that agriculture is recovered from the effects of the war period or that it is permanently on a prosperous basis the cattle industry has not yet recovered and in some sections has been suffering from dry weather every effort must be made both by government activity and by private agencies to restore and maintain agriculture to a complete normal relationship with other industries it was on account of past depression and in spite of present more encouraging conditions that i have assembled an agricultural conference made up of those who are representative of this great industry in both its operating and economic sides everyone knows that the great need of the farmers is markets the country is not suffering on the side of production almost the entire difficulty is on the side of distribution this reaches back of course to unit costs and diversification and many allied subjects it is exceedingly intricate for our domestic and foreign trade transportation and banking and in fact our entire economic system are closely related to it in time for action at this session i hope to report to the congress such legislative remedies as the conference may recommend an appropriation should be made to defray their necessary expenses the production of nitrogen for plant food in peace and explosives in war is more and more important it is one of the chief sustaining elements of life it is estimated that soil exhaustion each year is represented by about tons and replenishment by tons the deficit of tons is reported to represent the impairment of acres of farm lands each year to meet these necessities the government has been developing a water power project at muscle shoals to be equipped to produce nitrogen for explosives and fertilizer it is my opinion that the support of agriculture is the chief problem to consider in connection with this property it could by no means supply the present needs for nitrogen but it would help and its development would encourage bringing other water powers into like use several offers have been made for the purchase of this property probably none of them represent final terms much costly experimentation is necessary to produce commercial nitrogen for that reason it is a field better suited to private enterprise than to government operation i should favor a sale of this property or lease tinder rigid guaranties of commercial nitrogen production at reasonable prices for agricultural use there would be a surplus of power for many years over any possibility of its application to a developing manufacture of nitrogen it may be found advantageous to dispose of the right to surplus power separately with such reservations as will allow its gradual withdrawal and application to nitrogen manufacture a subcommittee of the committees on agriculture should investigate this field and negotiate with prospective purchasers if no advantageous offer be made the development should continue and the plant should be dedicated primarily to the production of materials for the fertilization of the soil the railways during the past year have made still further progress in recuperation from the war with large rains in efficiency and ability expeditiously to handle the traffic of the country we have now passed through several periods of peak traffic without the car shortages which so frequently in the past have brought havoc to our agriculture and industries the condition of many of our great freight terminals is still one of difficulty and results in imposing large costs on the public for freight and on the railways for freight owing to the growth of our large cities and the great increase in the volume of traffic particularly in perishables the problem is not only difficult of solution but in some cases not wholly solvable by railway action alone in my message last year i emphasized the necessity for further legislation with a view to expediting the consolidation of our rail ways into larger systems the principle of government control of rates and profits now thoroughly imbedded in our governmental attitude toward natural monopolies such as the railways at once eliminates the need of competition by small units as a method of rate adjustment competition must be preserved as a stimulus to service but this will exist and can be increased tinder enlarged systems consequently the consolidation of the railways into larger units for the purpose of securing the substantial values to the public which will come from larger operation has been the logical conclusion of congress in its previous enactments and is also supported by the best opinion in the country such consolidation will assure not only a greater element of competition as to service but it will afford economy in operation greater stability in railway earnings and more economical financing it opens large possibilities of better equalization of rates between different classes of traffic so as to relieve undue burdens upon agricultural products and raw materials generally which are now not possible without ruin to small units owing to the lack of diversity of traffic it would also tend to equalize earnings in such fashion as to reduce the importance of section 15a at which criticism often misapplied has been directed a smaller number of units would offer less difficulties in labor adjustments and would contribute much to the solution of terminal difficulties the consolidations need to be carried out with due regard to public interest and to the rights and established life of various communities in our country it does not seem to me necessary that we endeavor to anticipate any final plan or adhere to an artificial and unchangeable project which shall stipulate a fixed number of systems but rather we ought to approach the problem with such a latitude of action that it can be worked out step by step in accordance with a comprehensive consideration of public interest whether the number of ultimate systems shall be more or less seems to me can only be determined by time and actual experience in the development of such consolidations those portions of the present law contemplating consolidations ore not sufficiently effective in producing expeditious action and need amplification of the authority of the interstate commerce commission particularly in affording a period for voluntary proposals to the commission and in supplying government pressure to secure action after the expiration of such a period there are other proposals before congress for amending the transportation acts one of these contemplates a revision of the method of valuation for purposes to be followed by a renewed valuation of the railways the valuations instituted by the interstate commerce commission 10 years ago have not yet been completed they have cost the government an enormous sum and they have imposed great expenditure upon the railways most of which has in effect come out of the public in increased rates this work should not be abandoned or supplanted until its results are known and can be considered another matter before the congress is legislation affecting the labor sections of the transportation act much criticism has been directed at the workings of this section and experience has shown that some useful amendment could be made to these provisions it would be helpful if a plan could be adopted which while retaining the practice of systematic collective bargaining with conciliation voluntary arbitration of labor differences could also provide simplicity in relations and more direct local responsibility of employees and managers but such legislation will not meet the requirements of the situation unless it recognizes the principle that t e public has a right to the uninterrupted service of transportation and therefore a right to be heard when there is danger that the nation may suffer great injury through the interruption of operations because of labor disputes if these elements are not comprehended in proposed legislation it would be better to gain further experience with the present organization for dealing with these questions before undertaking a change the form of the organization of the shipping board was based originally on its functions as a semi judicial body in regulation of rates during the war it was loaded with enormous administrative duties it has been demonstrated time and again that this form of organization results in indecision division of opinion and administrative functions which make a wholly inadequate foundation for the conduct of a great business enterprise the first principle in securing the objective set out by congress in building up the american merchant marine upon the great trade routes and subsequently disposing of it into private operation can not proceed with effectiveness until the entire functions of the board are reorganized the immediate requirement is to transfer into the emergency fleet corporation the whole responsibility of operation of the fleet and other property leaving to the shipping board solely the duty of determining certain major policies which require deliberative action the procedure under section 28 of the merchant marine act has created great difficulty and threatened friction during the past 12 months its attempted application developed not only great opposition from exporters particularly as to burdens that may be imposed upon agricultural products but also great anxiety in the different seaports as to the effect upon their relative rate structures this trouble will certainly recur if action is attempted under this section it is uncertain in some of its terms and of great difficulty in interpretation it is my belief that action under this section should be suspended until the congress can reconsider the entire question in the light of the experience that has been developed since its enactment nothing is so fundamental to the integrity of a republican form of government as honesty in all that relates to the conduct of elections i am of the opinion that the national laws governing the choice of members of the congress should be extended to include appropriate representation of the respective parties at the ballot box ant equality of representation on the various registration boards wherever they exist the docket of the supreme court is becoming congested at the opening term last year it had 592 cases while this year it had 687 cases justice long delayed is justice refused unless the court be given power by preliminary and summary consideration to determine the importance of cases and by disposing of those which are not of public moment reserve its time for the more extended consideration of the remainder the congestion of the docket is likely to increase it is also desirable that supreme court should have power to improve and reform procedure in suits at law in the federal courts through the adoption of appropriate rules the judiciary committee of the senate has reported favorably upon two bills providing for these reforms which should have the immediate favorable consideration of the congress i further recommend that provision be made for the appointment of a commission to consist of two or three members of the federal judiciary and as many members of the bar to examine the present criminal code of procedure and recommend to the congress measures which may reform and expedite court procedure in the administration and enforcement of our criminal laws pending before the congress is a bill which has already passed one house providing for a reformatory to which could be committed first offenders and young men for the purpose of segregating them from contact with banned criminals and providing them with special training in order to reestablish in them the power to pursue a existence in the social and economic life of the nation this is a matter of so much importance as to warrant the early attention of the present session further provision should also be made for a like reason for a separate reformatory for women representatives of the international police conference will bring to the attention of the congress a proposal for the establishment of a national police bureau such action would provide a central point for gathering compiling and later distributing to local police authorities much information which would be helpful in the prevention and detection of crime i believe this bureau is needed and i recommend favorable consideration of this proposal the welfare work of the district of columbia is administered by several different boards dealing with charities and various correctional efforts it would be an improvement if this work were consolidated and placed under the direction of a single commission during the last session of the congress legislation was introduced looking to the payment of the remaining claims generally referred to as the french spoliation claims the congress has provided for the payment of many similar claims those that remain unpaid have been long pending the beneficiaries thereunder have every reason to expect payment these claims have been examined by the court of claims and their validity and amount determined the united states ought to pay its debts i recommend action by the congress which will permit of the payment of these remaining claims two very important policies have been adopted by this country which while extending their benefits also in other directions have been of the utmost importance to the wage earners one of these is the protective tariff which enables our people to live according to a better standard and receive a better rate of compensation than any people any time anywhere on earth ever enjoyed this saves the american market for the products of the american workmen the other is a policy of more recent origin and seeks to shield our wage earners from the disastrous competition of a great influx of foreign peoples this has been done by the restrictive immigration law this saves the american job for the american workmen i should like to see the administrative features of this law rendered a little more humane for the purpose of permitting those already here a greater latitude in securing admission of members of their own families but i believe this law in principle is necessary and sound and destined to increase greatly the public welfare we must maintain our own economic position we must defend our own national integrity it is gratifying to report that the progress of industry the enormous increase in individual productivity through devices and the high rate of wages have all combined to furnish our people in general with such an abundance not only of the necessaries but of the conveniences of life that we are by a natural evolution solving our problems of economic and social justice these developments have brought about a very remarkable improvement in the condition of the negro race gradually but surely with the almost universal sympathy of those among whom they live the colored people are working out their own destiny i firmly believe that it is better for all concerned that they should be cheerfully accorded their full constitutional rights that they should be protected from all of those impositions to which from their position they naturally fall a prey especially from the crime of lynching and that they should receive every encouragement to become full partakers in all the blessings of our common american citizenship the merit system has long been recognized as the correct basis for employment in our civil service i believe that first second and third class postmasters and without covering in the present membership tile field force of prohibition enforcement should be brought within the classified service by statute law otherwise the executive order of one administration is changed by the executive order of another administration and little real progress is made whatever its defects the merit system is certainly to be preferred to the spoils system one way to save public money would be to pass the pending bill for the reorganization of the various departments this project has been pending for some time and has had the most careful consideration of experts and the thorough study of a special congressional committee this legislation is vital as a companion piece to the budget law legal authority for a thorough reorganization of the federal structure with some latitude of action to the executive in the rearrangement of secondary functions would make for continuing economy in the shift of government activities which must follow every change in a developing country beyond this many of the independent agencies of the government must be placed under responsible cabinet officials if we are to have safeguards of efficiency economy and probity little has developed in relation to our national defense which needs special attention progress is constantly being made in air navigation and requires encouragement and development army aviators have made a successful trip around the world for which i recommend suitable recognition through provisions for promotion compensation and retirement under the direction of the navy a new zeppelin has been successfully brought from europe across the atlantic to our own country due to the efficient supervision of the secretary of war the army of the united states has been organized with a small body of regulars and a moderate national guard and reserve the defense test of september 12 demonstrated the efficiency of the operating plans these methods and operations are well worthy of congressional support under the limitation of armaments treaty a large saving in outlay and a considerable decrease in maintenance of the navy has been accomplished we should maintain the policy of constantly working toward the full treaty strength of the navy careful investigation is being made in this department of the relative importance of aircraft surface and submarine vessels in order that we may not fail to take advantage of all modern improvements for our national defense a special commission also is investigating the problem of petroleum oil for the navy considering the best policy to insure the future supply of fuel oil and prevent the threatened drainage of naval oil reserves legislative action is required to carry on experiments in oil shale reduction as large deposits of this type have been set aside for the use of the navy we have been constantly besought to engage in competitive armaments frequent reports will reach us of the magnitude of the military equipment of other nations we shall do well to be little impressed by such reports or such actions any nation undertaking to maintain a military establishment with aggressive and imperialistic designs will find itself severely handicapped in the economic development of the world i believe thoroughly in the army and navy in adequate defense and preparation but i am opposed to any policy of competition in building and maintaining land or sea armaments our country has definitely relinquished the old standard of dealing with other countries by terror and force and is definitely committed to the new standard of dealing with them through friendship and understanding this new policy should be constantly kept in mind by the guiding forces of the army and navy by the congress and by the country at large i believe it holds a promise of great benefit to humanity i shall resist any attempt to resort to the old methods and the old standards i am especially solicitous that foreign nations should comprehend the candor and sincerity with which we have adopted this position while we propose to maintain defensive and supplementary police forces by land and sea and to train them through inspections and maneuvers upon appropriate occasions in order to maintain their efficiency i wish every other nation to understand that this does not express any unfriendliness or convey any hostile intent i want the armed forces of america to be considered by all peoples not as enemies but as friends as the contribution which is made by this country for the maintenance of the peace and security of the world with the authorization for general hospitalization of the veterans of all wars provided during the present year the care and treatment of those who have served their country in time of peril and the attitude of the government toward them is not now so much one of needed legislation as one of careful generous and humane administration it will ever be recognized that their welfare is of the first concern and always entitled to the most solicitous consideration oil the part of their fellow citizens they are organized in various associations of which the chief and most representative is the american legion through its officers the legion will present to the congress numerous suggestions for legislation they cover such a wide variety of subjects that it is impossible to discuss them within the scope of this message with many of the proposals i join in hearty approval and commend them all to the sympathetic investigation and consideration of the congress at no period in the past 12 years have our foreign relations been in such a satisfactory condition as they are at the present time our actions in the recent months have greatly strengthened the american policy of permanent peace with independence the attitude which our government took and maintained toward an adjustment of european reparations by pointing out that it wits not a political but a business problem has demonstrated its wisdom by its actual results we desire to see europe restored that it may resume its productivity in the increase of industry and its support in the advance of civilization we look with great gratification at the hopeful prospect of recuperation in europe through the dawes plan such assistance as can be given through the action of the public authorities and of our private citizens through friendly counsel and cooperation and through economic and financial support not for any warlike effort but for reproductive enterprise not to provide means for unsound government financing but to establish sound business administration should be unhesitatingly provided ultimately nations like individuals can not depend upon each other but must depend upon themselves each one must work out its own salvation we have every desire to help but with all our resources we are powerless to save unless our efforts meet with a constructive response the situation in our own country and all over the world is one chat can be improved only by bard work and it is necessary to reduce expenditures increase savings and liquidate debts it is in this direction that there lies the greatest hope of domestic tranquility and international peace our own country ought to finish the leading example in this effort our past adherence to this policy our constant refusal to maintain a military establishment that could be thought to menace the security of others our honorable dealings with other nations whether great or small has left us in the almost constant enjoyment of peace it is not necessary to stress the general desire of all the people of this country for the promotion of peace it is the leading principle of all our foreign relations we have on every occasion tried to cooperate to this end in all ways that were consistent with our proper independence and our traditional policies it will be my constant effort to maintain these principles and to reinforce them by all appropriate agreements and treaties while we desire always to cooperate and to help we are equally determined to be independent and free right and truth and justice and humanitarian efforts will have the moral support of this country all over the world but we do not wish to become involved in the political controversies of others nor is the country disposed to become a member of the league of nations or to assume the obligations imposed by its covenant america has been one of the foremost nations in advocating tribunals for the settlement of international disputes of a justiciable character our representatives took a leading in those conferences which resulted in the establishment of e ague tribunal and later in providing for a permanent court of international justice i believe it would be for the advantage of this country and helpful to the stability of other nations for us to adhere to the protocol establishing that court upon the conditions stated in the recommendation which is now before the senate and further that our country shall not be bound by advisory opinions which may be rendered by the court upon questions which we have not voluntarily submitted for its judgment this court would provide a practical and convenient tribunal before which we could go voluntarily but to which we could not be summoned for a determination of justiciable questions when they fail to be resolved by diplomatic negotiations many times i have expressed my desire to see the work of the washington conference on limitation of armaments appropriately supplemented by further agreements for a further reduction m for the purpose of diminishing the menace and waste of the competition in preparing instruments of international war it has been and is my expectation that we might hopefully approach other great powers for further conference on this subject as soon as the carrying out of the present reparation plan as the established and settled policy of europe has created a favorable opportunity but on account of proposals which have already been made by other governments for a european conference it will be necessary to wait to see what the outcome of their actions may be i should not wish to propose or have representatives attend a conference which would contemplate commitments opposed to the freedom of action we desire to maintain unimpaired with respect to our purely domestic policies our country should also support efforts which are being made toward the codification of international law we can look more hopefully in the first instance for research and studies that are likely to be productive of results to a cooperation among representatives of the bar and members of international law institutes and societies than to a conference of those who are technically representative of their respective governments although when projects have been developed they must go to the governments for their approval these expert professional studies are going on in certain quarters and should have our constant encouragement and approval much interest has of late been manifested in this country in the discussion of various proposals to outlaw aggressive war i look with great sympathy upon the examination of this subject it is in harmony with the traditional policy of our country which is against aggressive war and for the maintenance of permanent and honorable peace while as i have said we must safeguard our liberty to deal according to our own judgment with our domestic policies we can not fail to view with sympathetic interest all progress to this desired end or carefully to study the measures that may be proposed to attain it while we are desirous of promoting peace in every quarter of the globe we have a special interest in the peace of this hemisphere it is our constant desire that all causes of dispute in this area may be tranquilly and satisfactorily adjusted along with our desire for peace is the earnest hope for the increased prosperity of our sister republics of latin america and our constant purpose to promote cooperation with them which may be mutually beneficial and always inspired by the most cordial friendships about is due to our government from abroad mostly from european governments great britain finland hungary lithuania and poland have negotiated settlements amounting close to this represents the funding of over 42 per cent of the debt since the creation of the special foreign debt commission as the life of this commission is about to expire its term should be extended i am opposed to the cancellation of these debts and believe it for the best welfare of the world that they should be liquidated and paid as fast as possible i do not favor oppressive measures but unless money that is borrowed is repaid credit can not be secured in time of necessity and there exists besides a moral obligation which our country can not ignore and no other country can evade terms and conditions may have to conform to differences in the financial abilities of the countries concerned but the principle that each country should meet its obligation admits of no differences and is of universal application it is axiomatic that our country can not stand still it would seem to be perfectly plain from recent events that it is determined to go forward but it wants no pretenses it wants no vagaries it is determined to advance in an orderly sound and way it does not propose to abandon the theory of the declaration that the people have inalienable rights which no majority and no power of government can destroy it does not propose to abandon the practice of the constitution that provides for the protection of these rights it believes that within these limitations which are imposed not by the fiat of man but by the law of the creator is just and wise it is convinced that it will be impossible for the people to provide their own government unless they continue to own their own property these are the very foundations of america on them has been erected a government of freedom and equality of justice and mercy of education and charity living under it and supporting it the people have come into great possessions on the material and spiritual sides of life i want to continue in this direction i know that the congress shares with me that desire i want our institutions to be more and more expressive of these principles i want the people of all the earth to see in the american flag the symbol of a government which intends no oppression at home and no aggression abroad which in the spirit of a common brotherhood provides assistance in time of distress
present state union upon customary president report congress provisions constitution may regarded encouragement satisfaction every american country almost unique ability discharge fully promptly obligations home abroad provide inhabitants increase material resources intellectual vigor moral power nation holds position unsurpassed former human experience mean problems elementary increasing breadth experience necessarily increases problems national life mean apply industriously honestly ample powers meet problems provide heir speedy solution profess secure era perfection human existence provide era peace prosperity attended freedom justice made satisfying ministrations charities humanities life domestic problems part economic enormous debt pay paying high cost government diminish diminishing heavy burden taxation reduce reducing remarkable progress made directions work yet far accomplished still owe cost national government still national taxes still amount 27 one inhabitants yet exists enormous field application economy opinion government remedy economic ills people system rigid economy public expenditure accomplished action costs national local governments combined stand sum close 100 inhabitant land little less represented national expenditure little local expenditure ominous fact national government reducing debt others increasing year depression overtook business disaster experienced agriculture lack employment terrific shrinkage values country experienced acute form 1920 resulted small measure prohibitive taxes levied productive effort establishment system drastic economy public expenditure enabled us pay national debt since 1919 almost cut two national tax burden since 1921 one main causes reestablishing prosperity come include within benefits almost every one inhabitants economy reaches everywhere carries blessing everybody fallacy claim costs government borne rich make direct contribution national treasury often exposed system devised think system could devised person living country could escape affected cost government direct effect upon rate purchasing power wages felt price prime necessities existence food clothing fuel shelter would appear elementary government expends must require every producer contribute production public treasury less benefit continuing costs public administration met one way work people higher become people must work government less people work present estimated margin public receipts expenditures fiscal year small perhaps important work session congress continue policy economy reduce cost government order may reduction taxes next fiscal year nothing likely produce public confidence forerunner mainstay prosperity encourage enlarge business opportunity ample opportunity employment good wages provide larger market agricultural products put country stronger position able meet world competition trade continuing policy economy course necessary costs must met proper functions government performed constant investments capital account reproductive effort must carried various departments people must know government placing upon unnecessary burden everyone desires reduction taxes great preponderance sentiment favor taxation reform approved present tax law stated publicly spite certain provisions believed unwise harmful one glaring making public amounts assessed different payers although damage done believe continuation detrimental public welfare bound decrease public revenues ought repealed anybody reduce taxes easy stand gap resist passage increasing appropriation bills would make tax reduction impossible easy measure strength attachment reduced taxation power increased appropriations resisted close present session congress kept within budget propose present possible moderate amount tax reduction tax reform congress may wish next fiscal year country feeling direct stimulus came passage last revenue bill assurance reasonable system taxation every prospect era prosperity unprecedented proportions would idle expect results unless business continue free excess profits taxation accorded system surtaxes rates object punishment success discouragement business production greatest amount revenue large incomes convinced larger incomes country would actually yield revenue government basis taxation scientifically revised downward moreover effect present method taxation increase cost interest productive enterprise increase burden rent altogether likely reduction would encourage stimulate investment would firmly establish country economic leadership world meantime internal development go provision made flood control rivers mississippi colorado opening inland waterways commerce consideration due project better navigation great lakes gulf every effort made promote agreement canada build lawrence waterway pending congress bills development mississippi basin taking cape cod canal accordance moral obligation seems incurred war improvement harbors pacific atlantic coasts last divested projects must proceed slowly bills general approval works productive wealth long run tend reduction tax burden country well defined policy reclamation established statutory authority policy continued made activity administered manner meet local requirements bring lands profitable state cultivation fast market products legislation pending based report fact finding commission proper relief needing extension time meet payments irrigated land additional amendments reforms reclamation laws exceedingly important enacted important development taken place last year beginning restoration agriculture prosperous condition must permit division classes country one occupation striving secure advantage another must proceed open opportunities fair prospect economic equality government successfully insure prosperity fix prices legislative fiat every business risk times depression well known long run even prosperity satisfactory range prices natural working economic laws government undertakes artificial support markets industries still order affairs protect people foreign competition arrange national finances administer monetary system provide extension credits improve methods distribution provide better working machinery transaction business nation least possible friction loss government constantly increasing efforts directions relief permanent establishment agriculture sound equal basis business estimated value crops harvest year may reach increase three years compares 1913 arid make deduction figures 1924 comparatively decreased value dollar yield year still exceeds 1913 purchasing power interval increase number farmers mostly effort farmer decreased cost production marked increase price products decrease price supplies brought parity rest nation crop area season estimated acres decline acres last year acres 1919 normal natural application economic laws placed agriculture foundation undeniably sound beginning satisfactory decrease world supply wheat resulted large increase price commodity position agricultural products indicates better balanced supply yet conclude agriculture recovered effects war period permanently prosperous basis cattle industry yet recovered sections suffering dry weather every effort must made government activity private agencies restore maintain agriculture complete normal relationship industries account past depression spite present encouraging conditions assembled agricultural conference made representative great industry operating economic sides everyone knows great need farmers markets country suffering side production almost entire difficulty side distribution reaches back course unit costs diversification many allied subjects exceedingly intricate domestic foreign trade transportation banking fact entire economic system closely related time action session hope report congress legislative remedies conference may recommend appropriation made defray necessary expenses production nitrogen plant food peace explosives war important one chief sustaining elements life estimated soil exhaustion year represented tons replenishment tons deficit tons reported represent impairment acres farm lands year meet necessities government developing water power project muscle shoals equipped produce nitrogen explosives fertilizer opinion support agriculture chief problem consider connection property could means supply present needs nitrogen would help development would encourage bringing water powers like use several offers made purchase property probably none represent final terms much costly experimentation necessary produce commercial nitrogen reason field better suited private enterprise government operation favor sale property lease tinder rigid guaranties commercial nitrogen production reasonable prices agricultural use would surplus power many years possibility application developing manufacture nitrogen may found advantageous dispose right surplus power separately reservations allow gradual withdrawal application nitrogen manufacture subcommittee committees agriculture investigate field negotiate prospective purchasers advantageous offer made development continue plant dedicated primarily production materials fertilization soil railways past year made still progress recuperation war large rains efficiency ability expeditiously handle traffic country passed several periods peak traffic without car shortages frequently past brought havoc agriculture industries condition many great freight terminals still one difficulty results imposing large costs public freight railways freight owing growth large cities great increase volume traffic particularly perishables problem difficult solution cases wholly solvable railway action alone message last year emphasized necessity legislation view expediting consolidation rail ways larger systems principle government control rates profits thoroughly imbedded governmental attitude toward natural monopolies railways eliminates need competition small units method rate adjustment competition must preserved stimulus service exist increased tinder enlarged systems consequently consolidation railways larger units purpose securing substantial values public come larger operation logical conclusion congress previous enactments also supported best opinion country consolidation assure greater element competition service afford economy operation greater stability railway earnings economical financing opens large possibilities better equalization rates different classes traffic relieve undue burdens upon agricultural products raw materials generally possible without ruin small units owing lack diversity traffic would also tend equalize earnings fashion reduce importance section 15a criticism often misapplied directed smaller number units would offer less difficulties labor adjustments would contribute much solution terminal difficulties consolidations need carried due regard public interest rights established life various communities country seem necessary endeavor anticipate final plan adhere artificial unchangeable project shall stipulate fixed number systems rather ought approach problem latitude action worked step step accordance comprehensive consideration public interest whether number ultimate systems shall less seems determined time actual experience development consolidations portions present law contemplating consolidations ore sufficiently effective producing expeditious action need amplification authority interstate commerce commission particularly affording period voluntary proposals commission supplying government pressure secure action expiration period proposals congress amending transportation acts one contemplates revision method valuation purposes followed renewed valuation railways valuations instituted interstate commerce commission 10 years ago yet completed cost government enormous sum imposed great expenditure upon railways effect come public increased rates work abandoned supplanted results known considered another matter congress legislation affecting labor sections transportation act much criticism directed workings section experience shown useful amendment could made provisions would helpful plan could adopted retaining practice systematic collective bargaining conciliation voluntary arbitration labor differences could also provide simplicity relations direct local responsibility employees managers legislation meet requirements situation unless recognizes principle e public right uninterrupted service transportation therefore right heard danger nation may suffer great injury interruption operations labor disputes elements comprehended proposed legislation would better gain experience present organization dealing questions undertaking change form organization shipping board based originally functions semi judicial body regulation rates war loaded enormous administrative duties demonstrated time form organization results indecision division opinion administrative functions make wholly inadequate foundation conduct great business enterprise first principle securing objective set congress building american merchant marine upon great trade routes subsequently disposing private operation proceed effectiveness entire functions board reorganized immediate requirement transfer emergency fleet corporation whole responsibility operation fleet property leaving shipping board solely duty determining certain major policies require deliberative action procedure section 28 merchant marine act created great difficulty threatened friction past 12 months attempted application developed great opposition exporters particularly burdens may imposed upon agricultural products also great anxiety different seaports effect upon relative rate structures trouble certainly recur action attempted section uncertain terms great difficulty interpretation belief action section suspended congress reconsider entire question light experience developed since enactment nothing fundamental integrity republican form government honesty relates conduct elections opinion national laws governing choice members congress extended include appropriate representation respective parties ballot box ant equality representation various registration boards wherever exist docket supreme court becoming congested opening term last year 592 cases year 687 cases justice long delayed justice refused unless court given power preliminary summary consideration determine importance cases disposing public moment reserve time extended consideration remainder congestion docket likely increase also desirable supreme court power improve reform procedure suits law federal courts adoption appropriate rules judiciary committee senate reported favorably upon two bills providing reforms immediate favorable consideration congress recommend provision made appointment commission consist two three members federal judiciary many members bar examine present criminal code procedure recommend congress measures may reform expedite court procedure administration enforcement criminal laws pending congress bill already passed one house providing reformatory could committed first offenders young men purpose segregating contact banned criminals providing special training order reestablish power pursue existence social economic life nation matter much importance warrant early attention present session provision also made like reason separate reformatory women representatives international police conference bring attention congress proposal establishment national police bureau action would provide central point gathering compiling later distributing local police authorities much information would helpful prevention detection crime believe bureau needed recommend favorable consideration proposal welfare work district columbia administered several different boards dealing charities various correctional efforts would improvement work consolidated placed direction single commission last session congress legislation introduced looking payment remaining claims generally referred french spoliation claims congress provided payment many similar claims remain unpaid long pending beneficiaries thereunder every reason expect payment claims examined court claims validity amount determined united states ought pay debts recommend action congress permit payment remaining claims two important policies adopted country extending benefits also directions utmost importance wage earners one protective tariff enables people live according better standard receive better rate compensation people time anywhere earth ever enjoyed saves american market products american workmen policy recent origin seeks shield wage earners disastrous competition great influx foreign peoples done restrictive immigration law saves american job american workmen like see administrative features law rendered little humane purpose permitting already greater latitude securing admission members families believe law principle necessary sound destined increase greatly public welfare must maintain economic position must defend national integrity gratifying report progress industry enormous increase individual productivity devices high rate wages combined furnish people general abundance necessaries conveniences life natural evolution solving problems economic social justice developments brought remarkable improvement condition negro race gradually surely almost universal sympathy among live colored people working destiny firmly believe better concerned cheerfully accorded full constitutional rights protected impositions position naturally fall prey especially crime lynching receive every encouragement become full partakers blessings common american citizenship merit system long recognized correct basis employment civil service believe first second third class postmasters without covering present membership tile field force prohibition enforcement brought within classified service statute law otherwise executive order one administration changed executive order another administration little real progress made whatever defects merit system certainly preferred spoils system one way save public money would pass pending bill reorganization various departments project pending time careful consideration experts thorough study special congressional committee legislation vital companion piece budget law legal authority thorough reorganization federal structure latitude action executive rearrangement secondary functions would make continuing economy shift government activities must follow every change developing country beyond many independent agencies government must placed responsible cabinet officials safeguards efficiency economy probity little developed relation national defense needs special attention progress constantly made air navigation requires encouragement development army aviators made successful trip around world recommend suitable recognition provisions promotion compensation retirement direction navy new zeppelin successfully brought europe across atlantic country due efficient supervision secretary war army united states organized small body regulars moderate national guard reserve defense test september 12 demonstrated efficiency operating plans methods operations well worthy congressional support limitation armaments treaty large saving outlay considerable decrease maintenance navy accomplished maintain policy constantly working toward full treaty strength navy careful investigation made department relative importance aircraft surface submarine vessels order may fail take advantage modern improvements national defense special commission also investigating problem petroleum oil navy considering best policy insure future supply fuel oil prevent threatened drainage naval oil reserves legislative action required carry experiments oil shale reduction large deposits type set aside use navy constantly besought engage competitive armaments frequent reports reach us magnitude military equipment nations shall well little impressed reports actions nation undertaking maintain military establishment aggressive imperialistic designs find severely handicapped economic development world believe thoroughly army navy adequate defense preparation opposed policy competition building maintaining land sea armaments country definitely relinquished old standard dealing countries terror force definitely committed new standard dealing friendship understanding new policy constantly kept mind guiding forces army navy congress country large believe holds promise great benefit humanity shall resist attempt resort old methods old standards especially solicitous foreign nations comprehend candor sincerity adopted position propose maintain defensive supplementary police forces land sea train inspections maneuvers upon appropriate occasions order maintain efficiency wish every nation understand express unfriendliness convey hostile intent want armed forces america considered peoples enemies friends contribution made country maintenance peace security world authorization general hospitalization veterans wars provided present year care treatment served country time peril attitude government toward much one needed legislation one careful generous humane administration ever recognized welfare first concern always entitled solicitous consideration oil part fellow citizens organized various associations chief representative american legion officers legion present congress numerous suggestions legislation cover wide variety subjects impossible discuss within scope message many proposals join hearty approval commend sympathetic investigation consideration congress period past 12 years foreign relations satisfactory condition present time actions recent months greatly strengthened american policy permanent peace independence attitude government took maintained toward adjustment european reparations pointing wits political business problem demonstrated wisdom actual results desire see europe restored may resume productivity increase industry support advance civilization look great gratification hopeful prospect recuperation europe dawes plan assistance given action public authorities private citizens friendly counsel cooperation economic financial support warlike effort reproductive enterprise provide means unsound government financing establish sound business administration unhesitatingly provided ultimately nations like individuals depend upon must depend upon one must work salvation every desire help resources powerless save unless efforts meet constructive response situation country world one chat improved bard work necessary reduce expenditures increase savings liquidate debts direction lies greatest hope domestic tranquility international peace country ought finish leading example effort past adherence policy constant refusal maintain military establishment could thought menace security others honorable dealings nations whether great small left us almost constant enjoyment peace necessary stress general desire people country promotion peace leading principle foreign relations every occasion tried cooperate end ways consistent proper independence traditional policies constant effort maintain principles reinforce appropriate agreements treaties desire always cooperate help equally determined independent free right truth justice humanitarian efforts moral support country world wish become involved political controversies others country disposed become member league nations assume obligations imposed covenant america one foremost nations advocating tribunals settlement international disputes justiciable character representatives took leading conferences resulted establishment e ague tribunal later providing permanent court international justice believe would advantage country helpful stability nations us adhere protocol establishing court upon conditions stated recommendation senate country shall bound advisory opinions may rendered court upon questions voluntarily submitted judgment court would provide practical convenient tribunal could go voluntarily could summoned determination justiciable questions fail resolved diplomatic negotiations many times expressed desire see work washington conference limitation armaments appropriately supplemented agreements reduction purpose diminishing menace waste competition preparing instruments international war expectation might hopefully approach great powers conference subject soon carrying present reparation plan established settled policy europe created favorable opportunity account proposals already made governments european conference necessary wait see outcome actions may wish propose representatives attend conference would contemplate commitments opposed freedom action desire maintain unimpaired respect purely domestic policies country also support efforts made toward codification international law look hopefully first instance research studies likely productive results cooperation among representatives bar members international law institutes societies conference technically representative respective governments although projects developed must go governments approval expert professional studies going certain quarters constant encouragement approval much interest late manifested country discussion various proposals outlaw aggressive war look great sympathy upon examination subject harmony traditional policy country aggressive war maintenance permanent honorable peace said must safeguard liberty deal according judgment domestic policies fail view sympathetic interest progress desired end carefully study measures may proposed attain desirous promoting peace every quarter globe special interest peace hemisphere constant desire causes dispute area may tranquilly satisfactorily adjusted along desire peace earnest hope increased prosperity sister republics latin america constant purpose promote cooperation may mutually beneficial always inspired cordial friendships due government abroad mostly european governments great britain finland hungary lithuania poland negotiated settlements amounting close represents funding 42 per cent debt since creation special foreign debt commission life commission expire term extended opposed cancellation debts believe best welfare world liquidated paid fast possible favor oppressive measures unless money borrowed repaid credit secured time necessity exists besides moral obligation country ignore country evade terms conditions may conform differences financial abilities countries concerned principle country meet obligation admits differences universal application axiomatic country stand still would seem perfectly plain recent events determined go forward wants pretenses wants vagaries determined advance orderly sound way propose abandon theory declaration people inalienable rights majority power government destroy propose abandon practice constitution provides protection rights believes within limitations imposed fiat man law creator wise convinced impossible people provide government unless continue property foundations america erected government freedom equality justice mercy education charity living supporting people come great possessions material spiritual sides life want continue direction know congress shares desire want institutions expressive principles want people earth see american flag symbol government intends oppression home aggression abroad spirit common brotherhood provides assistance time distress
present state union upon customary president report congress provision constitution may regard encouragement satisfaction every american country almost unique ability discharge fully promptly obligations home abroad provide inhabitant increase material resource intellectual vigor moral power nation hold position unsurpassed former human experience mean problem elementary increase breadth experience necessarily increase problem national life mean apply industriously honestly ample power meet problem provide heir speedy solution profess secure era perfection human existence provide era peace prosperity attend freedom justice make satisfy ministration charity humanity life domestic problem part economic enormous debt pay pay high cost government diminish diminish heavy burden taxation reduce reduce remarkable progress make direction work yet far accomplish still owe cost national government still national tax still amount 27 one inhabitant yet exist enormous field application economy opinion government remedy economic ill people system rigid economy public expenditure accomplish action cost national local government combine stand sum close 100 inhabitant land little less represented national expenditure little local expenditure ominous fact national government reduce debt others increase year depression overtook business disaster experience agriculture lack employment terrific shrinkage value country experience acute form 1920 result small measure prohibitive tax levy productive effort establishment system drastic economy public expenditure enable u pay national debt since 1919 almost cut two national tax burden since 1921 one main cause reestablish prosperity come include within benefit almost every one inhabitant economy reach everywhere carry bless everybody fallacy claim cost government borne rich make direct contribution national treasury often exposed system devise think system could devise person live country could escape affected cost government direct effect upon rate purchase power wage felt price prime necessity existence food clothing fuel shelter would appear elementary government expends must require every producer contribute production public treasury less benefit continue cost public administration meet one way work people higher become people must work government less people work present estimate margin public receipt expenditures fiscal year small perhaps important work session congress continue policy economy reduce cost government order may reduction tax next fiscal year nothing likely produce public confidence forerunner mainstay prosperity encourage enlarge business opportunity ample opportunity employment good wage provide large market agricultural product put country strong position able meet world competition trade continue policy economy course necessary cost must meet proper function government perform constant investment capital account reproductive effort must carry various department people must know government place upon unnecessary burden everyone desire reduction tax great preponderance sentiment favor taxation reform approve present tax law state publicly spite certain provision believe unwise harmful one glare make public amount assess different payer although damage do believe continuation detrimental public welfare bound decrease public revenue ought repeal anybody reduce tax easy stand gap resist passage increase appropriation bill would make tax reduction impossible easy measure strength attachment reduce taxation power increase appropriation resist close present session congress keep within budget propose present possible moderate amount tax reduction tax reform congress may wish next fiscal year country feel direct stimulus come passage last revenue bill assurance reasonable system taxation every prospect era prosperity unprecedented proportion would idle expect result unless business continue free excess profit taxation accord system surtaxes rate object punishment success discouragement business production great amount revenue large income convince large income country would actually yield revenue government basis taxation scientifically revise downward moreover effect present method taxation increase cost interest productive enterprise increase burden rent altogether likely reduction would encourage stimulate investment would firmly establish country economic leadership world meantime internal development go provision make flood control rivers mississippi colorado open inland waterway commerce consideration due project well navigation great lake gulf every effort make promote agreement canada build lawrence waterway pending congress bill development mississippi basin take cape cod canal accordance moral obligation seem incurred war improvement harbor pacific atlantic coast last divested project must proceed slowly bill general approval work productive wealth long run tend reduction tax burden country well defined policy reclamation establish statutory authority policy continue make activity administered manner meet local requirement bring land profitable state cultivation fast market product legislation pending base report fact find commission proper relief need extension time meet payment irrigate land additional amendment reform reclamation law exceedingly important enact important development take place last year begin restoration agriculture prosperous condition must permit division class country one occupation strive secure advantage another must proceed open opportunity fair prospect economic equality government successfully insure prosperity fix price legislative fiat every business risk time depression well know long run even prosperity satisfactory range price natural work economic law government undertakes artificial support market industry still order affair protect people foreign competition arrange national finance administer monetary system provide extension credit improve method distribution provide good work machinery transaction business nation least possible friction loss government constantly increase effort direction relief permanent establishment agriculture sound equal basis business estimate value crop harvest year may reach increase three year compare 1913 arid make deduction figure 1924 comparatively decreased value dollar yield year still exceed 1913 purchase power interval increase number farmer mostly effort farmer decrease cost production mark increase price product decrease price supply bring parity rest nation crop area season estimate acre decline acre last year acres 1919 normal natural application economic law place agriculture foundation undeniably sound begin satisfactory decrease world supply wheat result large increase price commodity position agricultural product indicate well balance supply yet conclude agriculture recover effect war period permanently prosperous basis cattle industry yet recover section suffer dry weather every effort must make government activity private agency restore maintain agriculture complete normal relationship industry account past depression spite present encouraging condition assemble agricultural conference make representative great industry operate economic side everyone know great need farmer market country suffer side production almost entire difficulty side distribution reach back course unit cost diversification many allied subject exceedingly intricate domestic foreign trade transportation bank fact entire economic system closely related time action session hope report congress legislative remedy conference may recommend appropriation make defray necessary expense production nitrogen plant food peace explosives war important one chief sustain element life estimate soil exhaustion year represent ton replenishment ton deficit ton report represent impairment acre farm land year meet necessities government develop water power project muscle shoal equip produce nitrogen explosive fertilizer opinion support agriculture chief problem consider connection property could mean supply present need nitrogen would help development would encourage bringing water power like use several offer make purchase property probably none represent final term much costly experimentation necessary produce commercial nitrogen reason field well suit private enterprise government operation favor sale property lease tinder rigid guaranty commercial nitrogen production reasonable price agricultural use would surplus power many year possibility application develop manufacture nitrogen may find advantageous dispose right surplus power separately reservation allow gradual withdrawal application nitrogen manufacture subcommittee committee agriculture investigate field negotiate prospective purchaser advantageous offer make development continue plant dedicate primarily production material fertilization soil railway past year make still progress recuperation war large rain efficiency ability expeditiously handle traffic country pass several period peak traffic without car shortage frequently past brought havoc agriculture industry condition many great freight terminal still one difficulty result impose large cost public freight railway freight owe growth large city great increase volume traffic particularly perishable problem difficult solution case wholly solvable railway action alone message last year emphasize necessity legislation view expedite consolidation rail way large system principle government control rate profit thoroughly imbed governmental attitude toward natural monopoly railways eliminates need competition small unit method rate adjustment competition must preserve stimulus service exist increase tinder enlarge system consequently consolidation railway large unit purpose secure substantial value public come large operation logical conclusion congress previous enactment also support best opinion country consolidation assure great element competition service afford economy operation great stability railway earnings economical financing open large possibility well equalization rate different class traffic relieve undue burden upon agricultural product raw material generally possible without ruin small unit owe lack diversity traffic would also tend equalize earnings fashion reduce importance section 15a criticism often misapply direct small number unit would offer less difficulty labor adjustment would contribute much solution terminal difficulty consolidation need carry due regard public interest right establish life various community country seem necessary endeavor anticipate final plan adhere artificial unchangeable project shall stipulate fixed number system rather ought approach problem latitude action work step step accordance comprehensive consideration public interest whether number ultimate system shall less seem determined time actual experience development consolidation portion present law contemplate consolidation ore sufficiently effective produce expeditious action need amplification authority interstate commerce commission particularly affording period voluntary proposal commission supply government pressure secure action expiration period proposal congress amend transportation act one contemplate revision method valuation purpose follow renew valuation railway valuation institute interstate commerce commission 10 year ago yet complete cost government enormous sum impose great expenditure upon railway effect come public increase rate work abandon supplanted result know consider another matter congress legislation affect labor section transportation act much criticism direct working section experience show useful amendment could make provision would helpful plan could adopt retain practice systematic collective bargaining conciliation voluntary arbitration labor difference could also provide simplicity relation direct local responsibility employee manager legislation meet requirement situation unless recognizes principle e public right uninterrupted service transportation therefore right heard danger nation may suffer great injury interruption operation labor dispute element comprehend propose legislation would better gain experience present organization deal question undertake change form organization ship board base originally function semi judicial body regulation rate war load enormous administrative duty demonstrate time form organization result indecision division opinion administrative function make wholly inadequate foundation conduct great business enterprise first principle secure objective set congress build american merchant marine upon great trade route subsequently dispose private operation proceed effectiveness entire function board reorganize immediate requirement transfer emergency fleet corporation whole responsibility operation fleet property leave ship board solely duty determine certain major policy require deliberative action procedure section 28 merchant marine act create great difficulty threaten friction past 12 month attempt application develop great opposition exporter particularly burden may impose upon agricultural product also great anxiety different seaport effect upon relative rate structure trouble certainly recur action attempted section uncertain term great difficulty interpretation belief action section suspend congress reconsider entire question light experience develop since enactment nothing fundamental integrity republican form government honesty relate conduct election opinion national law govern choice member congress extend include appropriate representation respective party ballot box ant equality representation various registration board wherever exist docket supreme court become congest open term last year 592 case year 687 case justice long delayed justice refuse unless court give power preliminary summary consideration determine importance case dispose public moment reserve time extend consideration remainder congestion docket likely increase also desirable supreme court power improve reform procedure suit law federal court adoption appropriate rule judiciary committee senate report favorably upon two bill provide reform immediate favorable consideration congress recommend provision make appointment commission consist two three member federal judiciary many member bar examine present criminal code procedure recommend congress measure may reform expedite court procedure administration enforcement criminal law pending congress bill already pass one house provide reformatory could commit first offender young men purpose segregate contact ban criminal provide special train order reestablish power pursue existence social economic life nation matter much importance warrant early attention present session provision also make like reason separate reformatory woman representative international police conference bring attention congress proposal establishment national police bureau action would provide central point gathering compiling later distribute local police authority much information would helpful prevention detection crime believe bureau need recommend favorable consideration proposal welfare work district columbia administer several different board deal charity various correctional effort would improvement work consolidate placed direction single commission last session congress legislation introduce look payment remain claim generally refer french spoliation claim congress provide payment many similar claim remain unpaid long pending beneficiary thereunder every reason expect payment claim examine court claim validity amount determine united state ought pay debt recommend action congress permit payment remain claim two important policy adopt country extend benefit also direction utmost importance wage earners one protective tariff enable people live accord well standard receive good rate compensation people time anywhere earth ever enjoy save american market product american workman policy recent origin seek shield wage earners disastrous competition great influx foreign people do restrictive immigration law save american job american workman like see administrative feature law render little humane purpose permit already great latitude secure admission member family believe law principle necessary sound destine increase greatly public welfare must maintain economic position must defend national integrity gratify report progress industry enormous increase individual productivity device high rate wage combine furnish people general abundance necessary conveniences life natural evolution solve problem economic social justice development bring remarkable improvement condition negro race gradually surely almost universal sympathy among live color people work destiny firmly believe well concern cheerfully accord full constitutional right protect imposition position naturally fall prey especially crime lynch receive every encouragement become full partaker blessing common american citizenship merit system long recognize correct basis employment civil service believe first second third class postmaster without cover present membership tile field force prohibition enforcement bring within classified service statute law otherwise executive order one administration change executive order another administration little real progress make whatever defect merit system certainly prefer spoil system one way save public money would pass pending bill reorganization various department project pending time careful consideration expert thorough study special congressional committee legislation vital companion piece budget law legal authority thorough reorganization federal structure latitude action executive rearrangement secondary function would make continue economy shift government activity must follow every change develop country beyond many independent agency government must place responsible cabinet official safeguard efficiency economy probity little developed relation national defense need special attention progress constantly make air navigation require encouragement development army aviator make successful trip around world recommend suitable recognition provision promotion compensation retirement direction navy new zeppelin successfully bring europe across atlantic country due efficient supervision secretary war army united state organize small body regular moderate national guard reserve defense test september 12 demonstrated efficiency operate plan method operation well worthy congressional support limitation armament treaty large save outlay considerable decrease maintenance navy accomplish maintain policy constantly work toward full treaty strength navy careful investigation make department relative importance aircraft surface submarine vessel order may fail take advantage modern improvement national defense special commission also investigate problem petroleum oil navy consider best policy insure future supply fuel oil prevent threaten drainage naval oil reserve legislative action require carry experiment oil shale reduction large deposit type set aside use navy constantly beseech engage competitive armament frequent report reach u magnitude military equipment nation shall well little impressed report action nation undertake maintain military establishment aggressive imperialistic design find severely handicapped economic development world believe thoroughly army navy adequate defense preparation oppose policy competition build maintain land sea armament country definitely relinquish old standard deal country terror force definitely commit new standard deal friendship understanding new policy constantly keep mind guiding force army navy congress country large believe hold promise great benefit humanity shall resist attempt resort old method old standard especially solicitous foreign nation comprehend candor sincerity adopt position propose maintain defensive supplementary police force land sea train inspection maneuver upon appropriate occasion order maintain efficiency wish every nation understand express unfriendliness convey hostile intent want arm force america consider people enemy friend contribution make country maintenance peace security world authorization general hospitalization veteran war provide present year care treatment serve country time peril attitude government toward much one need legislation one careful generous humane administration ever recognize welfare first concern always entitle solicitous consideration oil part fellow citizen organize various association chief representative american legion officer legion present congress numerous suggestion legislation cover wide variety subject impossible discus within scope message many proposal join hearty approval commend sympathetic investigation consideration congress period past 12 year foreign relation satisfactory condition present time action recent month greatly strengthen american policy permanent peace independence attitude government take maintain toward adjustment european reparation point wits political business problem demonstrate wisdom actual result desire see europe restore may resume productivity increase industry support advance civilization look great gratification hopeful prospect recuperation europe dawes plan assistance give action public authority private citizen friendly counsel cooperation economic financial support warlike effort reproductive enterprise provide mean unsound government finance establish sound business administration unhesitatingly provide ultimately nation like individual depend upon must depend upon one must work salvation every desire help resource powerless save unless effort meet constructive response situation country world one chat improve bard work necessary reduce expenditure increase saving liquidate debt direction lie great hope domestic tranquility international peace country ought finish lead example effort past adherence policy constant refusal maintain military establishment could think menace security others honorable dealing nation whether great small leave u almost constant enjoyment peace necessary stress general desire people country promotion peace lead principle foreign relation every occasion try cooperate end way consistent proper independence traditional policy constant effort maintain principle reinforce appropriate agreement treaty desire always cooperate help equally determine independent free right truth justice humanitarian effort moral support country world wish become involved political controversy others country dispose become member league nation assume obligation impose covenant america one foremost nation advocate tribunal settlement international dispute justiciable character representative take lead conference result establishment e ague tribunal later provide permanent court international justice believe would advantage country helpful stability nation u adhere protocol establish court upon condition state recommendation senate country shall bind advisory opinion may render court upon question voluntarily submit judgment court would provide practical convenient tribunal could go voluntarily could summon determination justiciable question fail resolve diplomatic negotiation many time express desire see work washington conference limitation armament appropriately supplement agreement reduction purpose diminish menace waste competition prepare instrument international war expectation might hopefully approach great power conference subject soon carry present reparation plan establish settled policy europe create favorable opportunity account proposal already make government european conference necessary wait see outcome action may wish propose representative attend conference would contemplate commitment oppose freedom action desire maintain unimpaired respect purely domestic policy country also support effort make toward codification international law look hopefully first instance research study likely productive result cooperation among representative bar member international law institute society conference technically representative respective government although project develop must go government approval expert professional study go certain quarter constant encouragement approval much interest late manifest country discussion various proposal outlaw aggressive war look great sympathy upon examination subject harmony traditional policy country aggressive war maintenance permanent honorable peace say must safeguard liberty deal accord judgment domestic policy fail view sympathetic interest progress desire end carefully study measure may propose attain desirous promote peace every quarter globe special interest peace hemisphere constant desire cause dispute area may tranquilly satisfactorily adjust along desire peace earnest hope increase prosperity sister republic latin america constant purpose promote cooperation may mutually beneficial always inspire cordial friendship due government abroad mostly european government great britain finland hungary lithuania poland negotiate settlement amount close represent fund 42 per cent debt since creation special foreign debt commission life commission expire term extend opposed cancellation debt believe best welfare world liquidate pay fast possible favor oppressive measure unless money borrow repay credit secure time necessity exist besides moral obligation country ignore country evade term condition may conform difference financial ability country concerned principle country meet obligation admits difference universal application axiomatic country stand still would seem perfectly plain recent event determine go forward want pretense want vagary determine advance orderly sound way propose abandon theory declaration people inalienable right majority power government destroy propose abandon practice constitution provide protection right believe within limitation impose fiat man law creator wise convince impossible people provide government unless continue property foundation america erected government freedom equality justice mercy education charity live support people come great possession material spiritual side life want continue direction know congress share desire want institution expressive principle want people earth see american flag symbol government intend oppression home aggression abroad spirit common brotherhood provide assistance time distress