To the Senate and House of Representatives: In accord with my constitutional duty, I transmit herewith to the Congress information upon the state of the Union together with recommendation of measures for its consideration. Our country is at peace. Our national defense has been maintained at a high state of effectiveness. All of the executive departments of the Government have been conducted during the year with a high devotion to public interest. There has been a far larger degree of freedom from industrial conflict than hitherto known. Education and science have made further advances. The public health is to-day at its highest known level. While we have recently engaged in the aggressive contest of a national election, its very tranquillity and the acceptance of its results furnish abundant proof of the strength of our institutions. In the face of widespread hardship our people have demonstrated daily a magnificent sense of humanity, of individual and community responsibility for the welfare of the less fortunate. They have grown in their conceptions and organization for cooperative action for the common welfare. In the provision against distress during this winter, the great private agencies of the country have been mobilized again; the generosity of our people has again come into evidence to a degree in which all America may take great pride. Likewise the local authorities and the States are engaged everywhere in supplemental measures of relief. The provisions made for loans from the Reconstruction Finance Corporation, to States that have exhausted their own resources, guarantee that there should be no hunger or suffering from cold in the country. The large majority of States are showing a sturdy cooperation in the spirit of the Federal aid. The Surgeon General, in charge of the Public Health Service, furnishes me with the following information upon the state of public health: MORTALITY RATE PER 1,000 OF POPULATION ON AN ANNUAL BASIS FROM REPRESENTATIVE STATES General Infant First 9 months of-- 
1928 11.9 67.8 
1929 12.0 65.8 
1930 11.4 62.0 
1931 11.2 60.0 
1932 10.6 55.0 The sickness rates from data available show the same trends. These facts indicate the fine endeavor of the agencies which have been mobilized for care of those in distress. ECONOMIC SITUATION The unparalleled world-wide economic depression has continued through the year. Due to the European collapse, the situation developed during last fall and winter into a series of most acute crises. The unprecedented emergency measures enacted and policies adopted undoubtedly saved the country from economic disaster. After serving to defend the national security, these measures began in July to show their weight and influence toward improvement of conditions in many parts of the country. The following tables of current business indicators show the general economic movement during the past eleven months. MONTHLY BUSINESS INDICES WITH SEASONAL VARIATIONS ELIMINATED 
[Monthly average 1923-1925=100] Industrial Factory Freight- Depart- Exports, Imports, Building Industrial 
Year and produc- employ- car ment store value value contracts, electric 
month tion ment loadings sales, all types power 
value consumption 1931 
December 74 69.4 69 81 46 48 38 89.1 1932 
January 72 68.1 64 78 39 42 31 93.9 
February 69 67.8 62 78 45 41 27 98.8 
March 67 66.4 61 72 41 37 26 88.0 
April 63 64.3 59 80 38 36 27 82.2 
May 60 62.1 54 73 37 34 26 82.0 
June 59 60.0 52 71 34 36 27 78.1 
July 58 58.3 51 67 32 27 27 79.2 
August 60 58.8 51 66 31 29 30 73.5 
September 66 60.3 54 70 33 32 30 84.0 
October 66 61.3 57 70 33 32 29 84.4 The measures and policies which have procured this turn toward recovery should be continued until the depression is passed, and then the emergency agencies should be promptly liquidated. The expansion of credit facilities by the Federal Reserve System and the Reconstruction Finance Corporation has been of incalculable value. The loans of the latter for reproductive works, and to railways for the creation of employment; its support of the credit structure through loans to banks, insurance companies, railways, building and loan associations, and to agriculture has protected the savings and insurance policies of millions of our citizens and has relieved millions of borrowers from duress; they have enabled industry and business to function and expand. The assistance given to Farm Loan Banks, the establishment of the Home Loan Banks and Agricultural Credit Associations--all in their various ramifications have placed large sums of money at the disposal of the people in protection and aid. Beyond this, the extensive organization of the country in voluntary action has produced profound results. The following table indicates direct expenditures of the Federal Government in aid to unemployment, agriculture, and financial relief over the past four years. The sums applied to financial relief multiply themselves many fold, being in considerable measure the initial capital supplied to the Reconstruction Finance Corporation, Farm Loan Banks, etc., which will be recovered to the Treasury. Agricultural 
Public works 1 relief and 
financial loans Fiscal year ending June 30-- 
1930 $410,420,000 $156,100,000 
1931 574,870,000 196,700,000 
1932 655,880,000 772,700,000 
1933 717,260,000 52,000,000 Total 2,358,430,000 1,177,500,000 
1 Public Building, Highways, Rivers and Harbors and their maintenance, naval and other vessels construction, hospitals, etc. Continued constructive policies promoting the economic recovery of the country must be the paramount duty of the Government. The result of the agencies we have created and the policies we have pursued has been to buttress our whole domestic financial structure and greatly to restore credit facilities. But progress in recovery requires another element as well--that is fully restored confidence in the future. Institutions and men may have resources and credit but unless they have confidence progress is halting and insecure. There are three definite directions in which action by the Government at once can contribute to strengthen further the forces of recovery by strengthening of confidence. They are the necessary foundations to any other action, and their accomplishment would at once promote employment and increase prices. The first of these directions of action is the continuing reduction of all Government expenditures, whether national, State, or local. The difficulties of the country demand undiminished efforts toward economy in government in every direction. Embraced in this problem is the unquestioned balancing of the Federal Budget. That is the first necessity of national stability and is the foundation of further recovery. It must be balanced in an absolutely safe and sure manner if full confidence is to be inspired. The second direction for action is the complete reorganization at once of our banking system. The shocks to our economic life have undoubtedly been multiplied by the weakness of this system, and until they are remedied recovery will be greatly hampered. The third direction for immediate action is vigorous and whole souled cooperation with other governments in the economic field. That our major difficulties find their origins in the economic weakness of foreign nations requires no demonstration. The first need to-day is strengthening of commodity prices. That can not be permanently accomplished by artificialities. It must be accomplished by expansion in consumption of goods through the return of stability and confidence in the world at large and that in turn can not be fully accomplished without cooperation with other nations. BALANCING THE BUDGET I shall in due course present the Executive Budget to the Congress. It will show proposed reductions in appropriations below those enacted by the last session of the Congress by over $830,000,000. In addition I shall present the necessary Executive orders under the recent act authorizing the reorganization of the Federal Government which, if permitted to go into force, will produce still further substantial economies. These sums in reduction of appropriations will, however, be partially offset by an increase of about $250,000,000 in uncontrollable items such as increased debt services, etc. In the Budget there is included only the completion of the Federal public works projects already undertaken or under contract. Speeding up of Federal public works during the past four years as an aid to employment has advanced many types of such improvements to the point where further expansion can not be justified in their usefulness to the Government or the people. As an aid to unemployment we should beyond the normal constructive programs substitute reproductive or so-called self-liquidating works. Loans for such purposes have been provided for through the Reconstruction Finance Corporation. This change in character of projects directly relieves the taxpayer and is capable of expansion into a larger field than the direct Federal works. The reproductive works constitute an addition to national wealth and to future employment, whereas further undue expansion of Federal public works is but a burden upon the future. The Federal construction program thus limited to commitments and work in progress under the proposed appropriations contemplates expenditures for the next fiscal year, including naval and other vessel construction, as well as other forms of public works and maintenance, of a total of $442,769,000, as compared with $717,262,000 for the present year. The expenditure on such items over the four years ending June 30 next will amount to $2,350,000,000, or an amount of construction work eight times as great as the cost of the Panama Canal and, except for completion of certain long-view projects, places the Nation in many directions well ahead of its requirements for some years to come. A normal program of about $200,000,000 per annum should hereafter provide for the country's necessities and will permit substantial future reduction in Federal expenditures. I recommend that the furlough system installed last year be continued not only because of the economy produced but because, being tantamount to the "5-day week," it sets an example which should be followed by the country and because it embraces within its workings the "spread work" principle and thus serves to maintain a number of public servants who would otherwise be deprived of all income. I feel, however, in view of the present economic situation and the decrease in the cost of living by over 20 per cent, that some further sacrifice should be made by salaried officials of the Government over and above the 8 1/3 per cent reduction under the furlough system. I will recommend that after exempting the first $1,000 of salary there should be a temporary reduction for one year of 11 per cent of that part of all Government salaries in excess of the $1,000 exemption, the result of which, combined with the furlough system, will average about 14.8 per cent reduction in pay to those earning more than $1,000. I will recommend measures to eliminate certain payments in the veterans' services. I conceive these outlays were entirely beyond the original intentions of Congress in building up veterans' allowances. Many abuses have grown up from ill-considered legislation. They should be eliminated. The Nation should not ask for a reduction in allowances to men and dependents whose disabilities rise out of war service nor to those veterans with substantial service who have become totally disabled from non-war-connected causes and who are at the same time without other support. These latter veterans are a charge on the community at some point, and I feel that in view of their service to the Nation as a whole the responsibility should fall upon the Federal Government. Many of the economies recommended in the Budget were presented at the last session of the Congress but failed of adoption. If the Economy and Appropriations Committees of the Congress in canvassing these proposed expenditures shall find further reductions which can be made without impairing essential Government services, it will be welcomed both by the country and by myself. But under no circumstances do I feel that the Congress should fail to uphold the total of reductions recommended. Some of the older revenues and some of the revenues provided under the act passed during the last session of the Congress, particularly those generally referred to as the nuisance taxes, have not been as prolific of income as had been hoped. Further revenue is necessary in addition to the amount of reductions in expenditures recommended. Many of the manufacturers' excise taxes upon selected industries not only failed to produce satisfactory revenue, but they are in many ways unjust and discriminatory. The time has come when, if the Government is to have an adequate basis of revenue to assure a balanced Budget, this system of special manufacturers' excise taxes should be extended to cover practically all manufactures at a uniform rate, except necessary food and possibly some grades of clothing. At the last session the Congress responded to my request for authority to reorganize the Government departments. The act provides for the grouping and consolidation of executive and administrative agencies according to major purpose, and thereby reducing the number and overlap and duplication of effort. Executive orders issued for these purposes are required to be transmitted to the Congress while in session and do not become effective until after the expiration of 60 calendar days after such transmission, unless the Congress shall sooner approve. I shall issue such Executive orders within a few days grouping or consolidating over fifty executive and administrative agencies including a large number of commissions and "independent" agencies. The second step, of course, remains that after these various bureaus and agencies are placed cheek by jowl into such groups, the administrative officers in charge of the groups shall eliminate their overlap and still further consolidate these activities. Therein lie large economies. The Congress must be warned that a host of interested persons inside and outside the Government whose vision is concentrated on some particular function will at once protest against these proposals. These same sorts of activities have prevented reorganization of the Government for over a quarter of a century. They must be disregarded if the task is to be accomplished. BANKING The basis of every other and every further effort toward recovery is to reorganize at once our banking system. The shocks to our economic system have undoubtedly multiplied by the weakness of our financial system. I first called attention of the Congress in 1929 to this condition, and I have unceasingly recommended remedy since that time. The subject has been exhaustively investigated both by the committees of the Congress and the officers of the Federal Reserve System. The banking and financial system is presumed to serve in furnishing the essential lubricant to the wheels of industry, agriculture, and commerce, that is, credit. Its diversion from proper use, its improper use, or its insufficiency instantly brings hardship and dislocation in economic life. As a system our banking has failed to meet this great emergency. It can be said without question of doubt that our losses and distress have been greatly augmented by its wholly inadequate organization. Its inability as a system to respond to our needs is to-day a constant drain upon progress toward recovery. In this statement I am not referring to individual banks or bankers. Thousands of them have shown distinguished courage and ability. On the contrary, I am referring to the system itself, which is so organized, or so lacking in organization, that in an emergency its very mechanism jeopardizes or paralyzes the action of sound banks and its instability is responsible for periodic dangers to our whole economic system. Bank failures rose in 1931 to 10 1/2 per cent of all the banks as compared to 1 1/2 per cent of the failures of all other types of enterprise. Since January 1, 1930, we have had 4,665 banks suspend, with $3,300,000,000 in deposits. Partly from fears and drains from abroad, partly from these failures themselves (which indeed often caused closing of sound banks), we have witnessed hoarding of currency to an enormous sum, rising during the height of the crisis to over $1,600,000,000. The results from interreaction of cause and effect have expressed themselves in strangulation of credit which at times has almost stifled the Nation's business and agriculture. The losses, suffering, and tragedies of our people are incalculable. Not alone do they lie in the losses of savings to millions of homes, injury by deprival of working capital to thousands of small businesses, but also, in the frantic pressure to recall loans to meet pressures of hoarding and in liquidation of failed banks, millions of other people have suffered in the loss of their homes and farms, businesses have been ruined, unemployment increased, and farmers' prices diminished. That this failure to function is unnecessary and is the fault of our particular system is plainly indicated by the fact that in Great Britain, where the economic mechanism has suffered far greater shocks than our own, there has not been a single bank failure during the depression. Again in Canada, where the situation has been in large degree identical with our own, there have not been substantial bank failures. The creation of the Reconstruction Finance Corporation and the amendments to the Federal Reserve Act served to defend the Nation in a great crisis. They are not remedies; they are relief. It is inconceivable that the Reconstruction Corporation, which has extended aid to nearly 6,000 institutions and is manifestly but a temporary device, can go on indefinitely. It is to-day a matter of satisfaction that the rate of bank failures, of hoarding, and the demands upon the Reconstruction Corporation have greatly lessened. The acute phases of the crisis have obviously passed and the time has now come when this national danger and this failure to respond to national necessities must be ended and the measures to end them can be safely undertaken. Methods of reform have been exhaustively examined. There is no reason now why solution should not be found at the present session of the Congress. Inflation of currency or governmental conduct of banking can have no part in these reforms. The Government must abide within the field of constructive organization, regulation, and the enforcement of safe practices only. Parallel with reform in the banking laws must be changes in the Federal Farm Loan Banking system and in the Joint Stock Land Banks. Some of these changes should be directed to permanent improvement and some to emergency aid to our people where they wish to fight to save their farms and homes. I wish again to emphasize this view--that these widespread banking reforms are a national necessity and are the first requisites for further recovery in agriculture and business. They should have immediate consideration as steps greatly needed to further recovery. ECONOMIC COOPERATION WITH OTHER NATIONS Our major difficulties during the past two years find their origins in the shocks from economic collapse abroad which in turn are the aftermath of the Great War. If we are to secure rapid and assured recovery and protection for the future we must cooperate with foreign nations in many measures. We have actively engaged in a World Disarmament Conference where, with success, we should reduce our own tax burdens and the tax burdens of other major nations. We should increase political stability of the world. We should lessen the danger of war by increasing defensive powers and decreasing offensive powers of nations. We would thus open new vistas of economic expansion for the world. We are participating in the formulation of a World Economic Conference, successful results from which would contribute much to advance in agricultural prices, employment, and business. Currency depreciation and correlated forces have contributed greatly to decrease in price levels. Moreover, from these origins rise most of the destructive trade barriers now stifling the commerce of the world. We could by successful action increase security and expand trade through stability in international exchange and monetary values. By such action world confidence could be restored. It would bring courage and stability, which will reflect into every home in our land. The European governments, obligated to us in war debts, have requested that there should be suspension of payments due the United States on December 15 next, to be accompanied by exchange of views upon this debt question. Our Government has informed them that we do not approve of suspension of the December 15 payments. I have stated that I would recommend to the Congress methods to overcome temporary exchange difficulties in connection with this payment from nations where it may be necessary. In the meantime I wish to reiterate that here are three great fields of international action which must be considered not in part but as a whole. They are of most vital interest to our people. Within them there are not only grave dangers if we fail in right action but there also tie immense opportunities for good if we shall succeed. Within success there lie major remedies for our economic distress and major progress in stability and security to every fireside in our country. The welfare of our people is dependent upon successful issue of the great causes of world peace, world disarmament, and organized world recovery. Nor is it too much to say that to-day as never before the welfare of mankind and the preservation of civilization depend upon our solution of these questions. Such solutions can not be attained except by honest friendship, by adherence to agreements entered upon until mutually revised and by cooperation amongst nations in a determination to find solutions which will be mutually beneficial. OTHER LEGISLATION I have placed various legislative needs before the Congress in previous messages, and these views require no amplification on this occasion. I have urged the need for reform in our transportation and power regulation, in the antitrust laws as applied to our national resource industries, western range conservation, extension of Federal aid to child health services, membership in the World Court, the ratification of the Great Lakes-St. Lawrence Seaway Treaty, revision of the bankruptcy acts, revision of Federal court procedure, and many other pressing problems. These and other special subjects I shall where necessary deal with by special communications to the Congress. The activities of our Government are so great, when combined with the emergency activities which have arisen out of the world crisis, that even the briefest review of them would render the annual message unduly long. I shall therefore avail myself of the fact that every detail of the Government is covered in the reports to the Congress by each of the departments and agencies of the Government. CONCLUSION It seems to me appropriate upon this occasion to make certain general observations upon the principles which must dominate the solution of problems now pressing upon the Nation. Legislation in response to national needs will be effective only if every such act conforms to a complete philosophy of the people's purposes and destiny. Ours is a distinctive government with a unique history and background, consciously dedicated to specific ideals of liberty and to a faith in the inviolable sanctity of the individual human spirit. Furthermore, the continued existence and adequate functioning of our government in preservation of ordered liberty and stimulation of progress depends upon the maintenance of State, local, institutional, and individual sense of responsibility. We have builded a system of individualism peculiarly our own which must not be forgotten in any governmental acts, for from it have grown greater accomplishments than those of any other nation. On the social and economic sides, the background of our American system and the motivation of progress is essentially that we should allow free play of social and economic forces as far as will not limit equality of opportunity and as will at the same time stimulate the initiative and enterprise of our people. In the maintenance of this balance the Federal Government can permit of no privilege to any person or group. It should act as a regulatory agent and not as a participant in economic and social life. The moment the Government participates, it becomes a competitor with the people. As a competitor it becomes at once a tyranny in whatever direction it may touch. We have around us numerous such experiences, no one of which can be found to have justified itself except in cases where the people as a whole have met forces beyond their control, such as those of the Great War and this great depression, where the full powers of the Federal Government must be exerted to protect the people. But even these must be limited to an emergency sense and must be promptly ended when these dangers are overcome. With the free development of science and the consequent multitude of inventions, some of which are absolutely revolutionary in our national life, the Government must not only stimulate the social and economic responsibility of individuals and private institutions but it must also give leadership to cooperative action amongst the people which will soften the effect of these revolutions and thus secure social transformations in an orderly manner. The highest form of self-government is the voluntary cooperation within our people for such purposes. But I would emphasize again that social and economic solutions, as such, will not avail to satisfy the aspirations of the people unless they conform with the traditions of our race deeply grooved in their sentiments through a century and a half of struggle for ideals of life that are rooted in religion and fed from purely spiritual springs. HERBERT HOOVER 
The White House, 
December 6, 1932.
To the Senate and House of Representatives: In accord with my constitutional duty, I transmit herewith to the Congress information upon the state of the Union together with recommendation of measures for its consideration. Our country is at peace. Our national defense has been maintained at a high state of effectiveness. All of the executive departments of the Government have been conducted during the year with a high devotion to public interest. There has been a far larger degree of freedom from industrial conflict than hitherto known. Education and science have made further advances. The public health is to-day at its highest known level. While we have recently engaged in the aggressive contest of a national election, its very tranquillity and the acceptance of its results furnish abundant proof of the strength of our institutions. In the face of widespread hardship our people have demonstrated daily a magnificent sense of humanity, of individual and community responsibility for the welfare of the less fortunate. They have grown in their conceptions and organization for cooperative action for the common welfare. In the provision against distress during this winter, the great private agencies of the country have been mobilized again; the generosity of our people has again come into evidence to a degree in which all America may take great pride. Likewise the local authorities and the States are engaged everywhere in supplemental measures of relief. The provisions made for loans from the Reconstruction Finance Corporation, to States that have exhausted their own resources, guarantee that there should be no hunger or suffering from cold in the country. The large majority of States are showing a sturdy cooperation in the spirit of the Federal aid. The Surgeon General, in charge of the Public Health Service, furnishes me with the following information upon the state of public health: MORTALITY RATE PER 1,000 OF POPULATION ON AN ANNUAL BASIS FROM REPRESENTATIVE STATES General Infant First 9 months of-- 1928 11.9 67.8 1929 12.0 65.8 1930 11.4 62.0 1931 11.2 60.0 1932 10.6 55.0 The sickness rates from data available show the same trends. These facts indicate the fine endeavor of the agencies which have been mobilized for care of those in distress. ECONOMIC SITUATION The unparalleled world-wide economic depression has continued through the year. Due to the European collapse, the situation developed during last fall and winter into a series of most acute crises. The unprecedented emergency measures enacted and policies adopted undoubtedly saved the country from economic disaster. After serving to defend the national security, these measures began in July to show their weight and influence toward improvement of conditions in many parts of the country. The following tables of current business indicators show the general economic movement during the past eleven months. MONTHLY BUSINESS INDICES WITH SEASONAL VARIATIONS ELIMINATED [Monthly average 1923-1925=100] Industrial Factory Freight- Depart- Exports, Imports, Building Industrial Year and produc- employ- car ment store value value contracts, electric month tion ment loadings sales, all types power value consumption 1931 December 74 69.4 69 81 46 48 38 89.1 1932 January 72 68.1 64 78 39 42 31 93.9 February 69 67.8 62 78 45 41 27 98.8 March 67 66.4 61 72 41 37 26 88.0 April 63 64.3 59 80 38 36 27 82.2 May 60 62.1 54 73 37 34 26 82.0 June 59 60.0 52 71 34 36 27 78.1 July 58 58.3 51 67 32 27 27 79.2 August 60 58.8 51 66 31 29 30 73.5 September 66 60.3 54 70 33 32 30 84.0 October 66 61.3 57 70 33 32 29 84.4 The measures and policies which have procured this turn toward recovery should be continued until the depression is passed, and then the emergency agencies should be promptly liquidated. The expansion of credit facilities by the Federal Reserve System and the Reconstruction Finance Corporation has been of incalculable value. The loans of the latter for reproductive works, and to railways for the creation of employment; its support of the credit structure through loans to banks, insurance companies, railways, building and loan associations, and to agriculture has protected the savings and insurance policies of millions of our citizens and has relieved millions of borrowers from duress; they have enabled industry and business to function and expand. The assistance given to Farm Loan Banks, the establishment of the Home Loan Banks and Agricultural Credit Associations--all in their various ramifications have placed large sums of money at the disposal of the people in protection and aid. Beyond this, the extensive organization of the country in voluntary action has produced profound results. The following table indicates direct expenditures of the Federal Government in aid to unemployment, agriculture, and financial relief over the past four years. The sums applied to financial relief multiply themselves many fold, being in considerable measure the initial capital supplied to the Reconstruction Finance Corporation, Farm Loan Banks, etc., which will be recovered to the Treasury. Agricultural Public works 1 relief and financial loans Fiscal year ending June 30-- 1930 $410,420,000 $156,100,000 1931 574,870,000 196,700,000 1932 655,880,000 772,700,000 1933 717,260,000 52,000,000 Total 2,358,430,000 1,177,500,000 1 Public Building, Highways, Rivers and Harbors and their maintenance, naval and other vessels construction, hospitals, etc. Continued constructive policies promoting the economic recovery of the country must be the paramount duty of the Government. The result of the agencies we have created and the policies we have pursued has been to buttress our whole domestic financial structure and greatly to restore credit facilities. But progress in recovery requires another element as well--that is fully restored confidence in the future. Institutions and men may have resources and credit but unless they have confidence progress is halting and insecure. There are three definite directions in which action by the Government at once can contribute to strengthen further the forces of recovery by strengthening of confidence. They are the necessary foundations to any other action, and their accomplishment would at once promote employment and increase prices. The first of these directions of action is the continuing reduction of all Government expenditures, whether national, State, or local. The difficulties of the country demand undiminished efforts toward economy in government in every direction. Embraced in this problem is the unquestioned balancing of the Federal Budget. That is the first necessity of national stability and is the foundation of further recovery. It must be balanced in an absolutely safe and sure manner if full confidence is to be inspired. The second direction for action is the complete reorganization at once of our banking system. The shocks to our economic life have undoubtedly been multiplied by the weakness of this system, and until they are remedied recovery will be greatly hampered. The third direction for immediate action is vigorous and whole souled cooperation with other governments in the economic field. That our major difficulties find their origins in the economic weakness of foreign nations requires no demonstration. The first need to-day is strengthening of commodity prices. That can not be permanently accomplished by artificialities. It must be accomplished by expansion in consumption of goods through the return of stability and confidence in the world at large and that in turn can not be fully accomplished without cooperation with other nations. BALANCING THE BUDGET I shall in due course present the Executive Budget to the Congress. It will show proposed reductions in appropriations below those enacted by the last session of the Congress by over $830,000,000. In addition I shall present the necessary Executive orders under the recent act authorizing the reorganization of the Federal Government which, if permitted to go into force, will produce still further substantial economies. These sums in reduction of appropriations will, however, be partially offset by an increase of about $250,000,000 in uncontrollable items such as increased debt services, etc. In the Budget there is included only the completion of the Federal public works projects already undertaken or under contract. Speeding up of Federal public works during the past four years as an aid to employment has advanced many types of such improvements to the point where further expansion can not be justified in their usefulness to the Government or the people. As an aid to unemployment we should beyond the normal constructive programs substitute reproductive or so-called self-liquidating works. Loans for such purposes have been provided for through the Reconstruction Finance Corporation. This change in character of projects directly relieves the taxpayer and is capable of expansion into a larger field than the direct Federal works. The reproductive works constitute an addition to national wealth and to future employment, whereas further undue expansion of Federal public works is but a burden upon the future. The Federal construction program thus limited to commitments and work in progress under the proposed appropriations contemplates expenditures for the next fiscal year, including naval and other vessel construction, as well as other forms of public works and maintenance, of a total of $442,769,000, as compared with $717,262,000 for the present year. The expenditure on such items over the four years ending June 30 next will amount to $2,350,000,000, or an amount of construction work eight times as great as the cost of the Panama Canal and, except for completion of certain long-view projects, places the Nation in many directions well ahead of its requirements for some years to come. A normal program of about $200,000,000 per annum should hereafter provide for the country's necessities and will permit substantial future reduction in Federal expenditures. I recommend that the furlough system installed last year be continued not only because of the economy produced but because, being tantamount to the "5-day week," it sets an example which should be followed by the country and because it embraces within its workings the "spread work" principle and thus serves to maintain a number of public servants who would otherwise be deprived of all income. I feel, however, in view of the present economic situation and the decrease in the cost of living by over 20 per cent, that some further sacrifice should be made by salaried officials of the Government over and above the 8 1/3 per cent reduction under the furlough system. I will recommend that after exempting the first $1,000 of salary there should be a temporary reduction for one year of 11 per cent of that part of all Government salaries in excess of the $1,000 exemption, the result of which, combined with the furlough system, will average about 14.8 per cent reduction in pay to those earning more than $1,000. I will recommend measures to eliminate certain payments in the veterans' services. I conceive these outlays were entirely beyond the original intentions of Congress in building up veterans' allowances. Many abuses have grown up from ill-considered legislation. They should be eliminated. The Nation should not ask for a reduction in allowances to men and dependents whose disabilities rise out of war service nor to those veterans with substantial service who have become totally disabled from non-war-connected causes and who are at the same time without other support. These latter veterans are a charge on the community at some point, and I feel that in view of their service to the Nation as a whole the responsibility should fall upon the Federal Government. Many of the economies recommended in the Budget were presented at the last session of the Congress but failed of adoption. If the Economy and Appropriations Committees of the Congress in canvassing these proposed expenditures shall find further reductions which can be made without impairing essential Government services, it will be welcomed both by the country and by myself. But under no circumstances do I feel that the Congress should fail to uphold the total of reductions recommended. Some of the older revenues and some of the revenues provided under the act passed during the last session of the Congress, particularly those generally referred to as the nuisance taxes, have not been as prolific of income as had been hoped. Further revenue is necessary in addition to the amount of reductions in expenditures recommended. Many of the manufacturers' excise taxes upon selected industries not only failed to produce satisfactory revenue, but they are in many ways unjust and discriminatory. The time has come when, if the Government is to have an adequate basis of revenue to assure a balanced Budget, this system of special manufacturers' excise taxes should be extended to cover practically all manufactures at a uniform rate, except necessary food and possibly some grades of clothing. At the last session the Congress responded to my request for authority to reorganize the Government departments. The act provides for the grouping and consolidation of executive and administrative agencies according to major purpose, and thereby reducing the number and overlap and duplication of effort. Executive orders issued for these purposes are required to be transmitted to the Congress while in session and do not become effective until after the expiration of 60 calendar days after such transmission, unless the Congress shall sooner approve. I shall issue such Executive orders within a few days grouping or consolidating over fifty executive and administrative agencies including a large number of commissions and "independent" agencies. The second step, of course, remains that after these various bureaus and agencies are placed cheek by jowl into such groups, the administrative officers in charge of the groups shall eliminate their overlap and still further consolidate these activities. Therein lie large economies. The Congress must be warned that a host of interested persons inside and outside the Government whose vision is concentrated on some particular function will at once protest against these proposals. These same sorts of activities have prevented reorganization of the Government for over a quarter of a century. They must be disregarded if the task is to be accomplished. BANKING The basis of every other and every further effort toward recovery is to reorganize at once our banking system. The shocks to our economic system have undoubtedly multiplied by the weakness of our financial system. I first called attention of the Congress in 1929 to this condition, and I have unceasingly recommended remedy since that time. The subject has been exhaustively investigated both by the committees of the Congress and the officers of the Federal Reserve System. The banking and financial system is presumed to serve in furnishing the essential lubricant to the wheels of industry, agriculture, and commerce, that is, credit. Its diversion from proper use, its improper use, or its insufficiency instantly brings hardship and dislocation in economic life. As a system our banking has failed to meet this great emergency. It can be said without question of doubt that our losses and distress have been greatly augmented by its wholly inadequate organization. Its inability as a system to respond to our needs is to-day a constant drain upon progress toward recovery. In this statement I am not referring to individual banks or bankers. Thousands of them have shown distinguished courage and ability. On the contrary, I am referring to the system itself, which is so organized, or so lacking in organization, that in an emergency its very mechanism jeopardizes or paralyzes the action of sound banks and its instability is responsible for periodic dangers to our whole economic system. Bank failures rose in 1931 to 10 1/2 per cent of all the banks as compared to 1 1/2 per cent of the failures of all other types of enterprise. Since January 1, 1930, we have had 4,665 banks suspend, with $3,300,000,000 in deposits. Partly from fears and drains from abroad, partly from these failures themselves (which indeed often caused closing of sound banks), we have witnessed hoarding of currency to an enormous sum, rising during the height of the crisis to over $1,600,000,000. The results from interreaction of because and effect have expressed themselves in strangulation of credit which at times has almost stifled the Nation's business and agriculture. The losses, suffering, and tragedies of our people are incalculable. Not alone do they lie in the losses of savings to millions of homes, injury by deprival of working capital to thousands of small businesses, but also, in the frantic pressure to recall loans to meet pressures of hoarding and in liquidation of failed banks, millions of other people have suffered in the loss of their homes and farms, businesses have been ruined, unemployment increased, and farmers' prices diminished. That this failure to function is unnecessary and is the fault of our particular system is plainly indicated by the fact that in Great Britain, where the economic mechanism has suffered far greater shocks than our own, there has not been a single bank failure during the depression. Again in Canada, where the situation has been in large degree identical with our own, there have not been substantial bank failures. The creation of the Reconstruction Finance Corporation and the amendments to the Federal Reserve Act served to defend the Nation in a great crisis. They are not remedies; they are relief. It is inconceivable that the Reconstruction Corporation, which has extended aid to nearly 6,000 institutions and is manifestly but a temporary device, can go on indefinitely. It is to-day a matter of satisfaction that the rate of bank failures, of hoarding, and the demands upon the Reconstruction Corporation have greatly lessened. The acute phases of the crisis have obviously passed and the time has now come when this national danger and this failure to respond to national necessities must be ended and the measures to end them can be safely undertaken. Methods of reform have been exhaustively examined. There is no reason now why solution should not be found at the present session of the Congress. Inflation of currency or governmental conduct of banking can have no part in these reforms. The Government must abide within the field of constructive organization, regulation, and the enforcement of safe practices only. Parallel with reform in the banking laws must be changes in the Federal Farm Loan Banking system and in the Joint Stock Land Banks. Some of these changes should be directed to permanent improvement and some to emergency aid to our people where they wish to fight to save their farms and homes. I wish again to emphasize this view--that these widespread banking reforms are a national necessity and are the first requisites for further recovery in agriculture and business. They should have immediate consideration as steps greatly needed to further recovery. ECONOMIC COOPERATION WITH OTHER NATIONS Our major difficulties during the past two years find their origins in the shocks from economic collapse abroad which in turn are the aftermath of the Great War. If we are to secure rapid and assured recovery and protection for the future we must cooperate with foreign nations in many measures. We have actively engaged in a World Disarmament Conference where, with success, we should reduce our own tax burdens and the tax burdens of other major nations. We should increase political stability of the world. We should lessen the danger of war by increasing defensive powers and decreasing offensive powers of nations. We would thus open new vistas of economic expansion for the world. We are participating in the formulation of a World Economic Conference, successful results from which would contribute much to advance in agricultural prices, employment, and business. Currency depreciation and correlated forces have contributed greatly to decrease in price levels. Moreover, from these origins rise most of the destructive trade barriers now stifling the commerce of the world. We could by successful action increase security and expand trade through stability in international exchange and monetary values. By such action world confidence could be restored. It would bring courage and stability, which will reflect into every home in our land. The European governments, obligated to us in war debts, have requested that there should be suspension of payments due the United States on December 15 next, to be accompanied by exchange of views upon this debt question. Our Government has informed them that we do not approve of suspension of the December 15 payments. I have stated that I would recommend to the Congress methods to overcome temporary exchange difficulties in connection with this payment from nations where it may be necessary. In the meantime I wish to reiterate that here are three great fields of international action which must be considered not in part but as a whole. They are of most vital interest to our people. Within them there are not only grave dangers if we fail in right action but there also tie immense opportunities for good if we shall succeed. Within success there lie major remedies for our economic distress and major progress in stability and security to every fireside in our country. The welfare of our people is dependent upon successful issue of the great causes of world peace, world disarmament, and organized world recovery. Nor is it too much to say that to-day as never before the welfare of mankind and the preservation of civilization depend upon our solution of these questions. Such solutions can not be attained except by honest friendship, by adherence to agreements entered upon until mutually revised and by cooperation amongst nations in a determination to find solutions which will be mutually beneficial. OTHER LEGISLATION I have placed various legislative needs before the Congress in previous messages, and these views require no amplification on this occasion. I have urged the need for reform in our transportation and power regulation, in the antitrust laws as applied to our national resource industries, western range conservation, extension of Federal aid to child health services, membership in the World Court, the ratification of the Great Lakes-St. Lawrence Seaway Treaty, revision of the bankruptcy acts, revision of Federal court procedure, and many other pressing problems. These and other special subjects I shall where necessary deal with by special communications to the Congress. The activities of our Government are so great, when combined with the emergency activities which have arisen out of the world crisis, that even the briefest review of them would render the annual message unduly long. I shall therefore avail myself of the fact that every detail of the Government is covered in the reports to the Congress by each of the departments and agencies of the Government. CONCLUSION It seems to me appropriate upon this occasion to make certain general observations upon the principles which must dominate the solution of problems now pressing upon the Nation. Legislation in response to national needs will be effective only if every such act conforms to a complete philosophy of the people's purposes and destiny. Ours is a distinctive government with a unique history and background, consciously dedicated to specific ideals of liberty and to a faith in the inviolable sanctity of the individual human spirit. Furthermore, the continued existence and adequate functioning of our government in preservation of ordered liberty and stimulation of progress depends upon the maintenance of State, local, institutional, and individual sense of responsibility. We have builded a system of individualism peculiarly our own which must not be forgotten in any governmental acts, for from it have grown greater accomplishments than those of any other nation. On the social and economic sides, the background of our American system and the motivation of progress is essentially that we should allow free play of social and economic forces as far as will not limit equality of opportunity and as will at the same time stimulate the initiative and enterprise of our people. In the maintenance of this balance the Federal Government can permit of no privilege to any person or group. It should act as a regulatory agent and not as a participant in economic and social life. The moment the Government participates, it becomes a competitor with the people. As a competitor it becomes at once a tyranny in whatever direction it may touch. We have around us numerous such experiences, no one of which can be found to have justified itself except in cases where the people as a whole have met forces beyond their control, such as those of the Great War and this great depression, where the full powers of the Federal Government must be exerted to protect the people. But even these must be limited to an emergency sense and must be promptly ended when these dangers are overcome. With the free development of science and the consequent multitude of inventions, some of which are absolutely revolutionary in our national life, the Government must not only stimulate the social and economic responsibility of individuals and private institutions but it must also give leadership to cooperative action amongst the people which will soften the effect of these revolutions and thus secure social transformations in an orderly manner. The highest form of self-government is the voluntary cooperation within our people for such purposes. But I would emphasize again that social and economic solutions, as such, will not avail to satisfy the aspirations of the people unless they conform with the traditions of our race deeply grooved in their sentiments through a century and a half of struggle for ideals of life that are rooted in religion and fed from purely spiritual springs. HERBERT HOOVER The White House, December 6, 1932.
to the senate and house of representatives in accord with my constitutional duty i transmit herewith to the congress information upon the state of the union together with recommendation of measures for its consideration our country is at peace our national defense has been maintained at a high state of effectiveness all of the executive departments of the government have been conducted during the year with a high devotion to public interest there has been a far larger degree of freedom from industrial conflict than hitherto known education and science have made further advances the public health is at its highest known level while we have recently engaged in the aggressive contest of a national election its very tranquillity and the acceptance of its results furnish abundant proof of the strength of our institutions in the face of widespread hardship our people have demonstrated daily a magnificent sense of humanity of individual and community responsibility for the welfare of the less fortunate they have grown in their conceptions and organization for cooperative action for the common welfare in the provision against distress during this winter the great private agencies of the country have been mobilized again the generosity of our people has again come into evidence to a degree in which all america may take great pride likewise the local authorities and the states are engaged everywhere in supplemental measures of relief the provisions made for loans from the reconstruction finance corporation to states that have exhausted their own resources guarantee that there should be no hunger or suffering from cold in the country the large majority of states are showing a sturdy cooperation in the spirit of the federal aid the surgeon general in charge of the public health service furnishes me with the following information upon the state of public health mortality rate per of population on an annual basis from representative states general infant first 9 months of 1928 1929 1930 1931 1932 the sickness rates from data available show the same trends these facts indicate the fine endeavor of the agencies which have been mobilized for care of those in distress economic situation the unparalleled economic depression has continued through the year due to the european collapse the situation developed during last fall and winter into a series of most acute crises the unprecedented emergency measures enacted and policies adopted undoubtedly saved the country from economic disaster after serving to defend the national security these measures began in july to show their weight and influence toward improvement of conditions in many parts of the country the following tables of current business indicators show the general economic movement during the past eleven months monthly business indices with seasonal variations eliminated monthly average industrial factory exports imports building industrial year and car ment store value value contracts electric month tion ment loadings sales all types power value consumption 1931 december 74 69 81 46 48 38 1932 january 72 64 78 39 42 31 february 69 62 78 45 41 27 march 67 61 72 41 37 26 april 63 59 80 38 36 27 may 60 54 73 37 34 26 june 59 52 71 34 36 27 july 58 51 67 32 27 27 august 60 51 66 31 29 30 september 66 54 70 33 32 30 october 66 57 70 33 32 29 the measures and policies which have procured this turn toward recovery should be continued until the depression is passed and then the emergency agencies should be promptly liquidated the expansion of credit facilities by the federal reserve system and the reconstruction finance corporation has been of incalculable value the loans of the latter for reproductive works and to railways for the creation of employment its support of the credit structure through loans to banks insurance companies railways building and loan associations and to agriculture has protected the savings and insurance policies of millions of our citizens and has relieved millions of borrowers from duress they have enabled industry and business to function and expand the assistance given to farm loan banks the establishment of the home loan banks and agricultural credit associations all in their various ramifications have placed large sums of money at the disposal of the people in protection and aid beyond this the extensive organization of the country in voluntary action has produced profound results the following table indicates direct expenditures of the federal government in aid to unemployment agriculture and financial relief over the past four years the sums applied to financial relief multiply themselves many fold being in considerable measure the initial capital supplied to the reconstruction finance corporation farm loan banks which will be recovered to the treasury agricultural public works 1 relief and financial loans fiscal year ending june 30 1930 1931 1932 1933 total 1 public building highways rivers and harbors and their maintenance naval and other vessels construction hospitals etc continued constructive policies promoting the economic recovery of the country must be the paramount duty of the government the result of the agencies we have created and the policies we have pursued has been to buttress our whole domestic financial structure and greatly to restore credit facilities but progress in recovery requires another element as well that is fully restored confidence in the future institutions and men may have resources and credit but unless they have confidence progress is halting and insecure there are three definite directions in which action by the government at once can contribute to strengthen further the forces of recovery by strengthening of confidence they are the necessary foundations to any other action and their accomplishment would at once promote employment and increase prices the first of these directions of action is the continuing reduction of all government expenditures whether national state or local the difficulties of the country demand undiminished efforts toward economy in government in every direction embraced in this problem is the unquestioned balancing of the federal budget that is the first necessity of national stability and is the foundation of further recovery it must be balanced in an absolutely safe and sure manner if full confidence is to be inspired the second direction for action is the complete reorganization at once of our banking system the shocks to our economic life have undoubtedly been multiplied by the weakness of this system and until they are remedied recovery will be greatly hampered the third direction for immediate action is vigorous and whole souled cooperation with other governments in the economic field that our major difficulties find their origins in the economic weakness of foreign nations requires no demonstration the first need is strengthening of commodity prices that can not be permanently accomplished by artificialities it must be accomplished by expansion in consumption of goods through the return of stability and confidence in the world at large and that in turn can not be fully accomplished without cooperation with other nations balancing the budget i shall in due course present the executive budget to the congress it will show proposed reductions in appropriations below those enacted by the last session of the congress by over in addition i shall present the necessary executive orders under the recent act authorizing the reorganization of the federal government which if permitted to go into force will produce still further substantial economies these sums in reduction of appropriations will however be partially offset by an increase of about in uncontrollable items such as increased debt services etc in the budget there is included only the completion of the federal public works projects already undertaken or under contract speeding up of federal public works during the past four years as an aid to employment has advanced many types of such improvements to the point where further expansion can not be justified in their usefulness to the government or the people as an aid to unemployment we should beyond the normal constructive programs substitute reproductive or works loans for such purposes have been provided for through the reconstruction finance corporation this change in character of projects directly relieves the taxpayer and is capable of expansion into a larger field than the direct federal works the reproductive works constitute an addition to national wealth and to future employment whereas further undue expansion of federal public works is but a burden upon the future the federal construction program thus limited to commitments and work in progress under the proposed appropriations contemplates expenditures for the next fiscal year including naval and other vessel construction as well as other forms of public works and maintenance of a total of as compared with for the present year the expenditure on such items over the four years ending june 30 next will amount to or an amount of construction work eight times as great as the cost of the panama canal and except for completion of certain projects places the nation in many directions well ahead of its requirements for some years to come a normal program of about per annum should hereafter provide for the country necessities and will permit substantial future reduction in federal expenditures i recommend that the furlough system installed last year be continued not only because of the economy produced but because being tantamount to the week it sets an example which should be followed by the country and because it embraces within its workings the spread work principle and thus serves to maintain a number of public servants who would otherwise be deprived of all income i feel however in view of the present economic situation and the decrease in the cost of living by over 20 per cent that some further sacrifice should be made by salaried officials of the government over and above the 8 per cent reduction under the furlough system i will recommend that after exempting the first of salary there should be a temporary reduction for one year of 11 per cent of that part of all government salaries in excess of the exemption the result of which combined with the furlough system will average about per cent reduction in pay to those earning more than i will recommend measures to eliminate certain payments in the veterans services i conceive these outlays were entirely beyond the original intentions of congress in building up veterans allowances many abuses have grown up from legislation they should be eliminated the nation should not ask for a reduction in allowances to men and dependents whose disabilities rise out of war service nor to those veterans with substantial service who have become totally disabled from causes and who are at the same time without other support these latter veterans are a charge on the community at some point and i feel that in view of their service to the nation as a whole the responsibility should fall upon the federal government many of the economies recommended in the budget were presented at the last session of the congress but failed of adoption if the economy and appropriations committees of the congress in canvassing these proposed expenditures shall find further reductions which can be made without impairing essential government services it will be welcomed both by the country and by myself but under no circumstances do i feel that the congress should fail to uphold the total of reductions recommended some of the older revenues and some of the revenues provided under the act passed during the last session of the congress particularly those generally referred to as the nuisance taxes have not been as prolific of income as had been hoped further revenue is necessary in addition to the amount of reductions in expenditures recommended many of the manufacturers excise taxes upon selected industries not only failed to produce satisfactory revenue but they are in many ways unjust and discriminatory the time has come when if the government is to have an adequate basis of revenue to assure a balanced budget this system of special manufacturers excise taxes should be extended to cover practically all manufactures at a uniform rate except necessary food and possibly some grades of clothing at the last session the congress responded to my request for authority to reorganize the government departments the act provides for the grouping and consolidation of executive and administrative agencies according to major purpose and thereby reducing the number and overlap and duplication of effort executive orders issued for these purposes are required to be transmitted to the congress while in session and do not become effective until after the expiration of 60 calendar days after such transmission unless the congress shall sooner approve i shall issue such executive orders within a few days grouping or consolidating over fifty executive and administrative agencies including a large number of commissions and independent agencies the second step of course remains that after these various bureaus and agencies are placed cheek by jowl into such groups the administrative officers in charge of the groups shall eliminate their overlap and still further consolidate these activities therein lie large economies the congress must be warned that a host of interested persons inside and outside the government whose vision is concentrated on some particular function will at once protest against these proposals these same sorts of activities have prevented reorganization of the government for over a quarter of a century they must be disregarded if the task is to be accomplished banking the basis of every other and every further effort toward recovery is to reorganize at once our banking system the shocks to our economic system have undoubtedly multiplied by the weakness of our financial system i first called attention of the congress in 1929 to this condition and i have unceasingly recommended remedy since that time the subject has been exhaustively investigated both by the committees of the congress and the officers of the federal reserve system the banking and financial system is presumed to serve in furnishing the essential lubricant to the wheels of industry agriculture and commerce that is credit its diversion from proper use its improper use or its insufficiency instantly brings hardship and dislocation in economic life as a system our banking has failed to meet this great emergency it can be said without question of doubt that our losses and distress have been greatly augmented by its wholly inadequate organization its inability as a system to respond to our needs is a constant drain upon progress toward recovery in this statement i am not referring to individual banks or bankers thousands of them have shown distinguished courage and ability on the contrary i am referring to the system itself which is so organized or so lacking in organization that in an emergency its very mechanism jeopardizes or paralyzes the action of sound banks and its instability is responsible for periodic dangers to our whole economic system bank failures rose in 1931 to 10 per cent of all the banks as compared to 1 per cent of the failures of all other types of enterprise since january 1 1930 we have had banks suspend with in deposits partly from fears and drains from abroad partly from these failures themselves which indeed often caused closing of sound banks we have witnessed hoarding of currency to an enormous sum rising during the height of the crisis to over the results from interreaction of because and effect have expressed themselves in strangulation of credit which at times has almost stifled the nation business and agriculture the losses suffering and tragedies of our people are incalculable not alone do they lie in the losses of savings to millions of homes injury by deprival of working capital to thousands of small businesses but also in the frantic pressure to recall loans to meet pressures of hoarding and in liquidation of failed banks millions of other people have suffered in the loss of their homes and farms businesses have been ruined unemployment increased and farmers prices diminished that this failure to function is unnecessary and is the fault of our particular system is plainly indicated by the fact that in great britain where the economic mechanism has suffered far greater shocks than our own there has not been a single bank failure during the depression again in canada where the situation has been in large degree identical with our own there have not been substantial bank failures the creation of the reconstruction finance corporation and the amendments to the federal reserve act served to defend the nation in a great crisis they are not remedies they are relief it is inconceivable that the reconstruction corporation which has extended aid to nearly institutions and is manifestly but a temporary device can go on indefinitely it is a matter of satisfaction that the rate of bank failures of hoarding and the demands upon the reconstruction corporation have greatly lessened the acute phases of the crisis have obviously passed and the time has now come when this national danger and this failure to respond to national necessities must be ended and the measures to end them can be safely undertaken methods of reform have been exhaustively examined there is no reason now why solution should not be found at the present session of the congress inflation of currency or governmental conduct of banking can have no part in these reforms the government must abide within the field of constructive organization regulation and the enforcement of safe practices only parallel with reform in the banking laws must be changes in the federal farm loan banking system and in the joint stock land banks some of these changes should be directed to permanent improvement and some to emergency aid to our people where they wish to fight to save their farms and homes i wish again to emphasize this view that these widespread banking reforms are a national necessity and are the first requisites for further recovery in agriculture and business they should have immediate consideration as steps greatly needed to further recovery economic cooperation with other nations our major difficulties during the past two years find their origins in the shocks from economic collapse abroad which in turn are the aftermath of the great war if we are to secure rapid and assured recovery and protection for the future we must cooperate with foreign nations in many measures we have actively engaged in a world disarmament conference where with success we should reduce our own tax burdens and the tax burdens of other major nations we should increase political stability of the world we should lessen the danger of war by increasing defensive powers and decreasing offensive powers of nations we would thus open new vistas of economic expansion for the world we are participating in the formulation of a world economic conference successful results from which would contribute much to advance in agricultural prices employment and business currency depreciation and correlated forces have contributed greatly to decrease in price levels moreover from these origins rise most of the destructive trade barriers now stifling the commerce of the world we could by successful action increase security and expand trade through stability in international exchange and monetary values by such action world confidence could be restored it would bring courage and stability which will reflect into every home in our land the european governments obligated to us in war debts have requested that there should be suspension of payments due the united states on december 15 next to be accompanied by exchange of views upon this debt question our government has informed them that we do not approve of suspension of the december 15 payments i have stated that i would recommend to the congress methods to overcome temporary exchange difficulties in connection with this payment from nations where it may be necessary in the meantime i wish to reiterate that here are three great fields of international action which must be considered not in part but as a whole they are of most vital interest to our people within them there are not only grave dangers if we fail in right action but there also tie immense opportunities for good if we shall succeed within success there lie major remedies for our economic distress and major progress in stability and security to every fireside in our country the welfare of our people is dependent upon successful issue of the great causes of world peace world disarmament and organized world recovery nor is it too much to say that as never before the welfare of mankind and the preservation of civilization depend upon our solution of these questions such solutions can not be attained except by honest friendship by adherence to agreements entered upon until mutually revised and by cooperation amongst nations in a determination to find solutions which will be mutually beneficial other legislation i have placed various legislative needs before the congress in previous messages and these views require no amplification on this occasion i have urged the need for reform in our transportation and power regulation in the antitrust laws as applied to our national resource industries western range conservation extension of federal aid to child health services membership in the world court the ratification of the great lawrence seaway treaty revision of the bankruptcy acts revision of federal court procedure and many other pressing problems these and other special subjects i shall where necessary deal with by special communications to the congress the activities of our government are so great when combined with the emergency activities which have arisen out of the world crisis that even the briefest review of them would render the annual message unduly long i shall therefore avail myself of the fact that every detail of the government is covered in the reports to the congress by each of the departments and agencies of the government conclusion it seems to me appropriate upon this occasion to make certain general observations upon the principles which must dominate the solution of problems now pressing upon the nation legislation in response to national needs will be effective only if every such act conforms to a complete philosophy of the people purposes and destiny ours is a distinctive government with a unique history and background consciously dedicated to specific ideals of liberty and to a faith in the inviolable sanctity of the individual human spirit furthermore the continued existence and adequate functioning of our government in preservation of ordered liberty and stimulation of progress depends upon the maintenance of state local institutional and individual sense of responsibility we have builded a system of individualism peculiarly our own which must not be forgotten in any governmental acts for from it have grown greater accomplishments than those of any other nation on the social and economic sides the background of our american system and the motivation of progress is essentially that we should allow free play of social and economic forces as far as will not limit equality of opportunity and as will at the same time stimulate the initiative and enterprise of our people in the maintenance of this balance the federal government can permit of no privilege to any person or group it should act as a regulatory agent and not as a participant in economic and social life the moment the government participates it becomes a competitor with the people as a competitor it becomes at once a tyranny in whatever direction it may touch we have around us numerous such experiences no one of which can be found to have justified itself except in cases where the people as a whole have met forces beyond their control such as those of the great war and this great depression where the full powers of the federal government must be exerted to protect the people but even these must be limited to an emergency sense and must be promptly ended when these dangers are overcome with the free development of science and the consequent multitude of inventions some of which are absolutely revolutionary in our national life the government must not only stimulate the social and economic responsibility of individuals and private institutions but it must also give leadership to cooperative action amongst the people which will soften the effect of these revolutions and thus secure social transformations in an orderly manner the highest form of is the voluntary cooperation within our people for such purposes but i would emphasize again that social and economic solutions as such will not avail to satisfy the aspirations of the people unless they conform with the traditions of our race deeply grooved in their sentiments through a century and a half of struggle for ideals of life that are rooted in religion and fed from purely spiritual springs herbert hoover the white house december 6 1932
senate house representatives accord constitutional duty transmit herewith congress information upon state union together recommendation measures consideration country peace national defense maintained high state effectiveness executive departments government conducted year high devotion public interest far larger degree freedom industrial conflict hitherto known education science made advances public health highest known level recently engaged aggressive contest national election tranquillity acceptance results furnish abundant proof strength institutions face widespread hardship people demonstrated daily magnificent sense humanity individual community responsibility welfare less fortunate grown conceptions organization cooperative action common welfare provision distress winter great private agencies country mobilized generosity people come evidence degree america may take great pride likewise local authorities states engaged everywhere supplemental measures relief provisions made loans reconstruction finance corporation states exhausted resources guarantee hunger suffering cold country large majority states showing sturdy cooperation spirit federal aid surgeon general charge public health service furnishes following information upon state public health mortality rate per population annual basis representative states general infant first 9 months 1928 1929 1930 1931 1932 sickness rates data available show trends facts indicate fine endeavor agencies mobilized care distress economic situation unparalleled economic depression continued year due european collapse situation developed last fall winter series acute crises unprecedented emergency measures enacted policies adopted undoubtedly saved country economic disaster serving defend national security measures began july show weight influence toward improvement conditions many parts country following tables current business indicators show general economic movement past eleven months monthly business indices seasonal variations eliminated monthly average industrial factory exports imports building industrial year car ment store value value contracts electric month tion ment loadings sales types power value consumption 1931 december 74 69 81 46 48 38 1932 january 72 64 78 39 42 31 february 69 62 78 45 41 27 march 67 61 72 41 37 26 april 63 59 80 38 36 27 may 60 54 73 37 34 26 june 59 52 71 34 36 27 july 58 51 67 32 27 27 august 60 51 66 31 29 30 september 66 54 70 33 32 30 october 66 57 70 33 32 29 measures policies procured turn toward recovery continued depression passed emergency agencies promptly liquidated expansion credit facilities federal reserve system reconstruction finance corporation incalculable value loans latter reproductive works railways creation employment support credit structure loans banks insurance companies railways building loan associations agriculture protected savings insurance policies millions citizens relieved millions borrowers duress enabled industry business function expand assistance given farm loan banks establishment home loan banks agricultural credit associations various ramifications placed large sums money disposal people protection aid beyond extensive organization country voluntary action produced profound results following table indicates direct expenditures federal government aid unemployment agriculture financial relief past four years sums applied financial relief multiply many fold considerable measure initial capital supplied reconstruction finance corporation farm loan banks recovered treasury agricultural public works 1 relief financial loans fiscal year ending june 30 1930 1931 1932 1933 total 1 public building highways rivers harbors maintenance naval vessels construction hospitals etc continued constructive policies promoting economic recovery country must paramount duty government result agencies created policies pursued buttress whole domestic financial structure greatly restore credit facilities progress recovery requires another element well fully restored confidence future institutions men may resources credit unless confidence progress halting insecure three definite directions action government contribute strengthen forces recovery strengthening confidence necessary foundations action accomplishment would promote employment increase prices first directions action continuing reduction government expenditures whether national state local difficulties country demand undiminished efforts toward economy government every direction embraced problem unquestioned balancing federal budget first necessity national stability foundation recovery must balanced absolutely safe sure manner full confidence inspired second direction action complete reorganization banking system shocks economic life undoubtedly multiplied weakness system remedied recovery greatly hampered third direction immediate action vigorous whole souled cooperation governments economic field major difficulties find origins economic weakness foreign nations requires demonstration first need strengthening commodity prices permanently accomplished artificialities must accomplished expansion consumption goods return stability confidence world large turn fully accomplished without cooperation nations balancing budget shall due course present executive budget congress show proposed reductions appropriations enacted last session congress addition shall present necessary executive orders recent act authorizing reorganization federal government permitted go force produce still substantial economies sums reduction appropriations however partially offset increase uncontrollable items increased debt services etc budget included completion federal public works projects already undertaken contract speeding federal public works past four years aid employment advanced many types improvements point expansion justified usefulness government people aid unemployment beyond normal constructive programs substitute reproductive works loans purposes provided reconstruction finance corporation change character projects directly relieves taxpayer capable expansion larger field direct federal works reproductive works constitute addition national wealth future employment whereas undue expansion federal public works burden upon future federal construction program thus limited commitments work progress proposed appropriations contemplates expenditures next fiscal year including naval vessel construction well forms public works maintenance total compared present year expenditure items four years ending june 30 next amount amount construction work eight times great cost panama canal except completion certain projects places nation many directions well ahead requirements years come normal program per annum hereafter provide country necessities permit substantial future reduction federal expenditures recommend furlough system installed last year continued economy produced tantamount week sets example followed country embraces within workings spread work principle thus serves maintain number public servants would otherwise deprived income feel however view present economic situation decrease cost living 20 per cent sacrifice made salaried officials government 8 per cent reduction furlough system recommend exempting first salary temporary reduction one year 11 per cent part government salaries excess exemption result combined furlough system average per cent reduction pay earning recommend measures eliminate certain payments veterans services conceive outlays entirely beyond original intentions congress building veterans allowances many abuses grown legislation eliminated nation ask reduction allowances men dependents whose disabilities rise war service veterans substantial service become totally disabled causes time without support latter veterans charge community point feel view service nation whole responsibility fall upon federal government many economies recommended budget presented last session congress failed adoption economy appropriations committees congress canvassing proposed expenditures shall find reductions made without impairing essential government services welcomed country circumstances feel congress fail uphold total reductions recommended older revenues revenues provided act passed last session congress particularly generally referred nuisance taxes prolific income hoped revenue necessary addition amount reductions expenditures recommended many manufacturers excise taxes upon selected industries failed produce satisfactory revenue many ways unjust discriminatory time come government adequate basis revenue assure balanced budget system special manufacturers excise taxes extended cover practically manufactures uniform rate except necessary food possibly grades clothing last session congress responded request authority reorganize government departments act provides grouping consolidation executive administrative agencies according major purpose thereby reducing number overlap duplication effort executive orders issued purposes required transmitted congress session become effective expiration 60 calendar days transmission unless congress shall sooner approve shall issue executive orders within days grouping consolidating fifty executive administrative agencies including large number commissions independent agencies second step course remains various bureaus agencies placed cheek jowl groups administrative officers charge groups shall eliminate overlap still consolidate activities therein lie large economies congress must warned host interested persons inside outside government whose vision concentrated particular function protest proposals sorts activities prevented reorganization government quarter century must disregarded task accomplished banking basis every every effort toward recovery reorganize banking system shocks economic system undoubtedly multiplied weakness financial system first called attention congress 1929 condition unceasingly recommended remedy since time subject exhaustively investigated committees congress officers federal reserve system banking financial system presumed serve furnishing essential lubricant wheels industry agriculture commerce credit diversion proper use improper use insufficiency instantly brings hardship dislocation economic life system banking failed meet great emergency said without question doubt losses distress greatly augmented wholly inadequate organization inability system respond needs constant drain upon progress toward recovery statement referring individual banks bankers thousands shown distinguished courage ability contrary referring system organized lacking organization emergency mechanism jeopardizes paralyzes action sound banks instability responsible periodic dangers whole economic system bank failures rose 1931 10 per cent banks compared 1 per cent failures types enterprise since january 1 1930 banks suspend deposits partly fears drains abroad partly failures indeed often caused closing sound banks witnessed hoarding currency enormous sum rising height crisis results interreaction effect expressed strangulation credit times almost stifled nation business agriculture losses suffering tragedies people incalculable alone lie losses savings millions homes injury deprival working capital thousands small businesses also frantic pressure recall loans meet pressures hoarding liquidation failed banks millions people suffered loss homes farms businesses ruined unemployment increased farmers prices diminished failure function unnecessary fault particular system plainly indicated fact great britain economic mechanism suffered far greater shocks single bank failure depression canada situation large degree identical substantial bank failures creation reconstruction finance corporation amendments federal reserve act served defend nation great crisis remedies relief inconceivable reconstruction corporation extended aid nearly institutions manifestly temporary device go indefinitely matter satisfaction rate bank failures hoarding demands upon reconstruction corporation greatly lessened acute phases crisis obviously passed time come national danger failure respond national necessities must ended measures end safely undertaken methods reform exhaustively examined reason solution found present session congress inflation currency governmental conduct banking part reforms government must abide within field constructive organization regulation enforcement safe practices parallel reform banking laws must changes federal farm loan banking system joint stock land banks changes directed permanent improvement emergency aid people wish fight save farms homes wish emphasize view widespread banking reforms national necessity first requisites recovery agriculture business immediate consideration steps greatly needed recovery economic cooperation nations major difficulties past two years find origins shocks economic collapse abroad turn aftermath great war secure rapid assured recovery protection future must cooperate foreign nations many measures actively engaged world disarmament conference success reduce tax burdens tax burdens major nations increase political stability world lessen danger war increasing defensive powers decreasing offensive powers nations would thus open new vistas economic expansion world participating formulation world economic conference successful results would contribute much advance agricultural prices employment business currency depreciation correlated forces contributed greatly decrease price levels moreover origins rise destructive trade barriers stifling commerce world could successful action increase security expand trade stability international exchange monetary values action world confidence could restored would bring courage stability reflect every home land european governments obligated us war debts requested suspension payments due united states december 15 next accompanied exchange views upon debt question government informed approve suspension december 15 payments stated would recommend congress methods overcome temporary exchange difficulties connection payment nations may necessary meantime wish reiterate three great fields international action must considered part whole vital interest people within grave dangers fail right action also tie immense opportunities good shall succeed within success lie major remedies economic distress major progress stability security every fireside country welfare people dependent upon successful issue great causes world peace world disarmament organized world recovery much say never welfare mankind preservation civilization depend upon solution questions solutions attained except honest friendship adherence agreements entered upon mutually revised cooperation amongst nations determination find solutions mutually beneficial legislation placed various legislative needs congress previous messages views require amplification occasion urged need reform transportation power regulation antitrust laws applied national resource industries western range conservation extension federal aid child health services membership world court ratification great lawrence seaway treaty revision bankruptcy acts revision federal court procedure many pressing problems special subjects shall necessary deal special communications congress activities government great combined emergency activities arisen world crisis even briefest review would render annual message unduly long shall therefore avail fact every detail government covered reports congress departments agencies government conclusion seems appropriate upon occasion make certain general observations upon principles must dominate solution problems pressing upon nation legislation response national needs effective every act conforms complete philosophy people purposes destiny distinctive government unique history background consciously dedicated specific ideals liberty faith inviolable sanctity individual human spirit furthermore continued existence adequate functioning government preservation ordered liberty stimulation progress depends upon maintenance state local institutional individual sense responsibility builded system individualism peculiarly must forgotten governmental acts grown greater accomplishments nation social economic sides background american system motivation progress essentially allow free play social economic forces far limit equality opportunity time stimulate initiative enterprise people maintenance balance federal government permit privilege person group act regulatory agent participant economic social life moment government participates becomes competitor people competitor becomes tyranny whatever direction may touch around us numerous experiences one found justified except cases people whole met forces beyond control great war great depression full powers federal government must exerted protect people even must limited emergency sense must promptly ended dangers overcome free development science consequent multitude inventions absolutely revolutionary national life government must stimulate social economic responsibility individuals private institutions must also give leadership cooperative action amongst people soften effect revolutions thus secure social transformations orderly manner highest form voluntary cooperation within people purposes would emphasize social economic solutions avail satisfy aspirations people unless conform traditions race deeply grooved sentiments century half struggle ideals life rooted religion fed purely spiritual springs herbert hoover white house december 6 1932
senate house representative accord constitutional duty transmit herewith congress information upon state union together recommendation measure consideration country peace national defense maintain high state effectiveness executive department government conduct year high devotion public interest far large degree freedom industrial conflict hitherto know education science make advance public health high know level recently engage aggressive contest national election tranquillity acceptance result furnish abundant proof strength institution face widespread hardship people demonstrate daily magnificent sense humanity individual community responsibility welfare less fortunate grown conception organization cooperative action common welfare provision distress winter great private agency country mobilize generosity people come evidence degree america may take great pride likewise local authority state engage everywhere supplemental measure relief provision make loan reconstruction finance corporation state exhaust resource guarantee hunger suffer cold country large majority state show sturdy cooperation spirit federal aid surgeon general charge public health service furnishes follow information upon state public health mortality rate per population annual basis representative state general infant first 9 month 1928 1929 1930 1931 1932 sickness rate data available show trend fact indicate fine endeavor agency mobilize care distress economic situation unparalleled economic depression continue year due european collapse situation develop last fall winter series acute crisis unprecedented emergency measure enact policy adopt undoubtedly saved country economic disaster serve defend national security measure begin july show weight influence toward improvement condition many part country follow table current business indicator show general economic movement past eleven month monthly business index seasonal variation eliminate monthly average industrial factory export import build industrial year car ment store value value contract electric month tion ment loading sale type power value consumption 1931 december 74 69 81 46 48 38 1932 january 72 64 78 39 42 31 february 69 62 78 45 41 27 march 67 61 72 41 37 26 april 63 59 80 38 36 27 may 60 54 73 37 34 26 june 59 52 71 34 36 27 july 58 51 67 32 27 27 august 60 51 66 31 29 30 september 66 54 70 33 32 30 october 66 57 70 33 32 29 measure policy procure turn toward recovery continue depression pass emergency agency promptly liquidate expansion credit facility federal reserve system reconstruction finance corporation incalculable value loan latter reproductive work railways creation employment support credit structure loan bank insurance company railways building loan association agriculture protect saving insurance policy million citizen relieve million borrower duress enable industry business function expand assistance give farm loan bank establishment home loan bank agricultural credit association various ramification place large sum money disposal people protection aid beyond extensive organization country voluntary action produce profound result follow table indicates direct expenditures federal government aid unemployment agriculture financial relief past four year sums apply financial relief multiply many fold considerable measure initial capital supply reconstruction finance corporation farm loan bank recover treasury agricultural public work 1 relief financial loan fiscal year end june 30 1930 1931 1932 1933 total 1 public building highway river harbor maintenance naval vessel construction hospital etc continued constructive policy promote economic recovery country must paramount duty government result agency create policy pursue buttress whole domestic financial structure greatly restore credit facility progress recovery require another element well fully restore confidence future institution men may resource credit unless confidence progress halt insecure three definite direction action government contribute strengthen force recovery strengthen confidence necessary foundation action accomplishment would promote employment increase price first direction action continue reduction government expenditures whether national state local difficulty country demand undiminished effort toward economy government every direction embrace problem unquestioned balance federal budget first necessity national stability foundation recovery must balance absolutely safe sure manner full confidence inspire second direction action complete reorganization banking system shock economic life undoubtedly multiply weakness system remedied recovery greatly hamper third direction immediate action vigorous whole souled cooperation government economic field major difficulty find origins economic weakness foreign nation require demonstration first need strengthen commodity price permanently accomplished artificiality must accomplish expansion consumption good return stability confidence world large turn fully accomplish without cooperation nation balance budget shall due course present executive budget congress show propose reduction appropriation enact last session congress addition shall present necessary executive order recent act authorize reorganization federal government permit go force produce still substantial economy sum reduction appropriation however partially offset increase uncontrollable item increase debt service etc budget include completion federal public work project already undertaken contract speed federal public work past four year aid employment advance many type improvement point expansion justify usefulness government people aid unemployment beyond normal constructive program substitute reproductive work loan purpose provide reconstruction finance corporation change character project directly relieve taxpayer capable expansion large field direct federal work reproductive work constitute addition national wealth future employment whereas undue expansion federal public work burden upon future federal construction program thus limited commitment work progress propose appropriation contemplate expenditure next fiscal year include naval vessel construction well form public work maintenance total compare present year expenditure item four year end june 30 next amount amount construction work eight time great cost panama canal except completion certain project place nation many direction well ahead requirement year come normal program per annum hereafter provide country necessity permit substantial future reduction federal expenditure recommend furlough system instal last year continue economy produce tantamount week set example follow country embrace within working spread work principle thus serve maintain number public servant would otherwise deprived income feel however view present economic situation decrease cost live 20 per cent sacrifice make salaried official government 8 per cent reduction furlough system recommend exempt first salary temporary reduction one year 11 per cent part government salary excess exemption result combine furlough system average per cent reduction pay earn recommend measure eliminate certain payment veteran service conceive outlay entirely beyond original intention congress building veteran allowance many abuse grown legislation eliminate nation ask reduction allowance men dependent whose disability rise war service veteran substantial service become totally disabled cause time without support latter veteran charge community point feel view service nation whole responsibility fall upon federal government many economy recommend budget present last session congress fail adoption economy appropriation committees congress canvass propose expenditure shall find reduction make without impair essential government service welcome country circumstance feel congress fail uphold total reduction recommend old revenue revenue provide act pass last session congress particularly generally refer nuisance tax prolific income hop revenue necessary addition amount reduction expenditures recommend many manufacturer excise tax upon select industry fail produce satisfactory revenue many way unjust discriminatory time come government adequate basis revenue assure balance budget system special manufacturer excise tax extend cover practically manufacture uniform rate except necessary food possibly grade clothing last session congress respond request authority reorganize government department act provide grouping consolidation executive administrative agency accord major purpose thereby reduce number overlap duplication effort executive order issue purpose require transmitted congress session become effective expiration 60 calendar day transmission unless congress shall sooner approve shall issue executive order within day group consolidate fifty executive administrative agency include large number commission independent agency second step course remain various bureau agency place cheek jowl group administrative officer charge group shall eliminate overlap still consolidate activity therein lie large economy congress must warn host interested person inside outside government whose vision concentrate particular function protest proposal sort activity prevent reorganization government quarter century must disregard task accomplished bank basis every every effort toward recovery reorganize banking system shock economic system undoubtedly multiply weakness financial system first call attention congress 1929 condition unceasingly recommend remedy since time subject exhaustively investigated committee congress officer federal reserve system bank financial system presume serve furnish essential lubricant wheel industry agriculture commerce credit diversion proper use improper use insufficiency instantly bring hardship dislocation economic life system bank failed meet great emergency say without question doubt loss distress greatly augment wholly inadequate organization inability system respond need constant drain upon progress toward recovery statement refer individual bank banker thousand show distinguished courage ability contrary refer system organize lack organization emergency mechanism jeopardize paralyzes action sound bank instability responsible periodic danger whole economic system bank failure rise 1931 10 per cent bank compare 1 per cent failure type enterprise since january 1 1930 bank suspend deposit partly fear drain abroad partly failure indeed often cause closing sound bank witness hoard currency enormous sum rise height crisis result interreaction effect express strangulation credit time almost stifled nation business agriculture loss suffer tragedy people incalculable alone lie loss saving million home injury deprival working capital thousand small business also frantic pressure recall loan meet pressure hoard liquidation fail bank million people suffer loss home farm business ruined unemployment increase farmer price diminish failure function unnecessary fault particular system plainly indicated fact great britain economic mechanism suffer far great shock single bank failure depression canada situation large degree identical substantial bank failure creation reconstruction finance corporation amendments federal reserve act serve defend nation great crisis remedy relief inconceivable reconstruction corporation extend aid nearly institution manifestly temporary device go indefinitely matter satisfaction rate bank failure hoard demand upon reconstruction corporation greatly lessen acute phase crisis obviously pass time come national danger failure respond national necessity must end measure end safely undertaken method reform exhaustively examine reason solution find present session congress inflation currency governmental conduct bank part reform government must abide within field constructive organization regulation enforcement safe practice parallel reform banking law must change federal farm loan banking system joint stock land bank change direct permanent improvement emergency aid people wish fight save farm home wish emphasize view widespread banking reform national necessity first requisites recovery agriculture business immediate consideration step greatly need recovery economic cooperation nation major difficulty past two year find origins shock economic collapse abroad turn aftermath great war secure rapid assure recovery protection future must cooperate foreign nation many measure actively engage world disarmament conference success reduce tax burden tax burden major nation increase political stability world lessen danger war increase defensive power decrease offensive power nation would thus open new vista economic expansion world participate formulation world economic conference successful result would contribute much advance agricultural price employment business currency depreciation correlate force contribute greatly decrease price level moreover origin rise destructive trade barrier stifle commerce world could successful action increase security expand trade stability international exchange monetary value action world confidence could restore would bring courage stability reflect every home land european government obligate u war debt request suspension payment due united state december 15 next accompany exchange view upon debt question government inform approve suspension december 15 payment state would recommend congress method overcome temporary exchange difficulty connection payment nation may necessary meantime wish reiterate three great field international action must consider part whole vital interest people within grave danger fail right action also tie immense opportunity good shall succeed within success lie major remedy economic distress major progress stability security every fireside country welfare people dependent upon successful issue great cause world peace world disarmament organize world recovery much say never welfare mankind preservation civilization depend upon solution question solution attain except honest friendship adherence agreement enter upon mutually revise cooperation amongst nation determination find solution mutually beneficial legislation place various legislative need congress previous message view require amplification occasion urge need reform transportation power regulation antitrust law apply national resource industry western range conservation extension federal aid child health service membership world court ratification great lawrence seaway treaty revision bankruptcy act revision federal court procedure many press problem special subject shall necessary deal special communication congress activity government great combined emergency activity arise world crisis even brief review would render annual message unduly long shall therefore avail fact every detail government cover report congress department agency government conclusion seem appropriate upon occasion make certain general observation upon principle must dominate solution problem press upon nation legislation response national need effective every act conform complete philosophy people purpose destiny distinctive government unique history background consciously dedicate specific ideal liberty faith inviolable sanctity individual human spirit furthermore continue existence adequate functioning government preservation order liberty stimulation progress depend upon maintenance state local institutional individual sense responsibility build system individualism peculiarly must forget governmental act grow great accomplishment nation social economic side background american system motivation progress essentially allow free play social economic force far limit equality opportunity time stimulate initiative enterprise people maintenance balance federal government permit privilege person group act regulatory agent participant economic social life moment government participate becomes competitor people competitor become tyranny whatever direction may touch around u numerous experience one find justified except case people whole meet force beyond control great war great depression full power federal government must exert protect people even must limit emergency sense must promptly end danger overcome free development science consequent multitude invention absolutely revolutionary national life government must stimulate social economic responsibility individual private institution must also give leadership cooperative action amongst people soften effect revolution thus secure social transformation orderly manner high form voluntary cooperation within people purpose would emphasize social economic solution avail satisfy aspiration people unless conform tradition race deeply groove sentiment century half struggle ideal life root religion fed purely spiritual spring herbert hoover white house december 6 1932