
 In meeting the constitutional requirement of informing the Congress upon the state of the Union, it is exceedingly gratifying to report that the general condition is one of progress and prosperity. Here and there are comparatively small and apparently temporary difficulties needing adjustment and improved administrative methods, such as are always to be expected, but in the fundamentals of government and business the results demonstrate that we are going in the right direction. The country does not appear to require radical departures from the policies already adopted so much as it needs a further extension of these policies and the improvement of details. The age of perfection is still in the somewhat distant future, but it is more in danger of being retarded by mistaken Government activity than it is from lack of legislation. We are by far the most likely to accomplish permanent good if we proceed with moderation.
 In our country the people are sovereign and independent, and must accept the resulting responsibilities. It is their duty to support themselves and support the Government. That is the business of the Nation, whatever the charity of the Nation may require. The functions which the Congress are to discharge are not those of local government but of National Government. The greatest solicitude should be exercised to prevent any encroachment upon the rights of the States or their various political subdivisions. Local self-government is one of our most precious possessions. It is the greatest contributing factor to the stability strength liberty, and progress of the Nation. It ought not to be in ringed by assault or undermined by purchase. It ought not to abdicate its power through weakness or resign its authority through favor. It does not at all follow that because abuses exist it is the concern of the Federal Government to attempt their reform.
 Society is in much more danger from encumbering the National Government beyond its wisdom to comprehend, or its ability to administer, than from leaving the local communities to bear their own burdens and remedy their own evils. Our local habit and custom is so strong, our variety of race and creed is so great the Federal authority is so tenuous, that the area within which it can function successfully is very limited. The wiser policy is to leave the localities, so far as we can, possessed of their own sources of revenue and charged with their own obligations.
 
 It is a fundamental principle of our country that the people are sovereign. While they recognize the undeniable authority of the state, they have established as its instrument a Government of limited powers. They hold inviolate in their own hands the jurisdiction over their own freedom and the ownership of their own property. Neither of these can be impaired except by due process of law. The wealth of our country is not public wealth, but private wealth. It does not belong to the Government, it belongs to the people. The Government has no justification in taking private Property except for a public purpose. It is always necessary to keep these principles in mind in the laying of taxes and in the making of appropriations. No right exists to levy on a dollar, or to order the expenditure of a dollar, of the money of the people, except for a necessary public purpose duly authorized by the Constitution. The power over the purse is the power over liberty.
 That is the legal limitation within which the Congress can act, How it will, proceed within this limitation is always a question of policy. When the country is prosperous and free from debt, when the rate of taxation is low, opportunity exists for assuming new burdens and undertaking new enterprises. Such a condition now prevails only to a limited extent. All proposals for assuming new obligations ought to be postponed, unless they are reproductive capital investments or are such as are absolutely necessary at this time. We still have an enormous debt of over $20,000,000,000, on which the interest and sinking-fund requirements are $1,320,000,000. Our appropriations for the Pension Office and the Veterans' Bureau are $600,000,000. The War and Navy Departments call for $642,000,000. Other requirements, exclusive of the Post Office ' which is virtually self-sustaining, brought the appropriations for the current year up to almost $3,100,060,000. This shows an expenditure of close to $30 for every inhabitant of our country. For the average family of five it means a tax, directly or indirectly paid, of about $150 for national purposes alone. The local tax adds much more. These enormous expenditures ought not to be increased, but through every possible effort they ought to be reduced.
 Only one of these great items can be ultimately extinguished. That is the item of our war debt. Already this has been reduced to about $6,000,000,000, which means an annual saving in interest of close to $250,000,000. The present interest charge is about $820,000,000 yearly. It would seem to be obvious that the sooner this debt can be retired the more the taxpayers will save in interest and the easier it will be to secure funds with which to prosecute needed running expenses, constructions, and improvements. This item of $820,000,000 for interest is a heavy charge on all the people of the country, and it seems to me that we might well consider whether it is not greatly worth while to dispense with it as early as possible by retiring the principal debt which it is required to serve.
 It has always been our policy to retire our debts. That of the Revolutionary War period, notwithstanding the additions made in 1812, was paid by 1835. and the Civil War debt within 23 years. Of the amount already paid, over $1,000,000,000 is a reduction in cash balances. That source is exhausted. Over one and two-thirds billions of dollars was derived from excess receipts. Tax reduction eliminates that. The sale of surplus war materials has been another element of our income. That is practically finished. With these eliminated, the reduction of the debt has been only about $500,000,000 each year, not an excessive sum on so large a debt.
 Proposals have been made to extend the payment over a period of 62 years. If $1,000,000,000 is paid at the end of 20 years, the cost to the taxpayers is the principal and, I f the interest is 4% per cent, a total of $1,850,000,000. If the same sum is paid at the end of 62 years, the cost is $3,635,000,000, or almost double. Here is another consideration: Compared with its purchasing power in 1913, the dollar we borrowed represented but 52 cents. As the value of our dollar increases, due to the falling prices of commodities, the burden of our debt increases. It has now risen to 631/2 cents. The taxpayer will be required to produce nearly twice the amount of commodities to pay his debt if the dollar returns to the 1913 value. The more we pay while prices are high, the easier it will be.
 Deflation of government after a war period is slower than deflation of business, where curtailment is either prompt and effective or disaster follows. There is room for further economy in the cost of the Federal Government, but a co n of current expenditures with pre-war expenditures is not able to the efficiency with which Government business is now being done. The expenditures of 19161 the last pre-war year, were $742,000,000, and in 1925 over $3,500,000,000, or nearly five times as great. If we subtract expenditures for debt retirements and interest, veterans' relief, increase of pensions, and other special outlays, consisting of refunds, trust investments, and like charges, we find that the general expenditures of the Government in 1925 were slightly more than twice as large as in 1916.
 As prices in 1925 were approximately 40 per cent higher than in 1916, the cost of the same Government must also have increased. But the Government is not 'the same. It is more expensive to collect the much greater revenue necessary and to administer our great debt. We have given enlarged and improved services to agriculture and commerce. Above all, America has grown in population and wealth. Government expenditures must always share in  this growth. Taking into account the factors I have mentioned, I believe that present Federal expenses are not far out of line with pre-war expenses. We have nearly accomplished the deflation.
 This does not mean that further economies will not come. As we reduce our debt our interest charges decline. There are many details yet to correct. The real improvement, however, must come not from additional curtailment of expenses, but by a more intelligent, more ordered spending. Our economy must be constructive. While we should avoid as far as possible increases in permanent current expenditures, oftentimes a capital outlay like internal improvements will result in actual constructive saving. That is economy in its best sense. It is an avoidance of waste that there may be the means for an outlay to-day which will bring larger returns to-morrow. We should constantly engage in scientific studies of our future requirements and adopt an orderly program for their service. Economy is the method by which we prepare to-day to afford the improvements of to-morrow.
 A mere policy of economy without any instrumentalities for putting it into operation would be very ineffective. The Congress has wisely set up the Bureau of the Budget to investigate and inform the President what recommendations he ought to make for current appropriations. This gives a centralized authority where a general and comprehensive understanding can be reached of the sources of income and the most equitable distribution of expenditures. How well it has worked is indicated by the fact that the departmental estimates for 1922, before the budget law, were $4,068,000,000 while the Budget estimates for 1927 are $3,156,000,000. This latter figure shows the reductions in departmental estimates for the coming year made possible by the operation of the Budget system that the Congress has provided.
 But it is evidently not enough to have care in making appropriations without any restraint upon expenditure. The Congress has provided that check by establishing the office of Comptroller General.
 The purpose of maintaining the Budget Director and the Comptroller General is to secure economy and efficiency in Government expenditure. No better method has been devised for the accomplishment of that end. These offices can not be administered in all the various details without making some errors both of fact and of judgment. But the important consideration remains that these are the instrumentalities of the Congress and that no other plan has ever been adopted which was so successful in promoting economy and efficiency. The Congress has absolute authority over the appropriations and is free to exercise its judgment, as the evidence may warrant, in increasing or decreasing budget recommendations. But it ought to resist every effort to weaken or break down this most beneficial system of supervising appropriations and expenditures. Without it all the claim of economy would be a mere pretense.
 
 The purpose of reducing expenditures is to secure a reduction in taxes. That purpose is about to be realized. With commendable promptness the Ways and Means Committee of the House has undertaken in advance of the meeting of the Congress to frame a revenue act. As the bill has proceeded through the committee it has taken on a nonpartisan character, and both Republicans and Democrats have joined in a measure which embodies many sound principles of tax reform. The bill will correct substantially the economic defects injected into the revenue act of 1924, as well as many which have remained as war-time legacies. In its present form it should provide sufficient revenue for the Government.
 The excessive surtaxes have been reduced, estate tax rates arv restored to more reasonable figures, with every prospect of withdrawing from the field when the States have had the opportunity to correct the abuses in their own inheritance tax laws, the gift tax and publicity section are to be repealed many miscellaneous taxes are lowered or abandoned, and the Board of Tax Appeals and the administrative features of the law are improved and strengthened. I approve of the bill in principle. In so far as income-tax exemptions are concerned, it seems, to me the committee has gone as far as it is Safe to go and somewhat further than I should have gone. Any further extension along these lines would, in my opinion, impair tile integrity of our income-tax system.
 I am advised that the bill will. be through the House by Christmas. For this prompt action the country call thank the good sense of the Ways and Means Committee in framing an economic measure upon economic considerations. If this attitude continues to be reflected through the Congress, the taxpayer will have his relief by the time his March 15th installment of income taxes is due. Nonpartisan effort means certain, quick action. Determination of a revenue law definitely, promptly and solely as a revenue law, is one of the greatest gifts a legislature can bestow upon its constituents. I commend the example of file Ways and Means Committee. If followed, it will place sound legislation upon the books in time to give the taxpayers the full benefit of tax reduction next year. This means that the bill should reach me prior to March 15.
 All these economic results are being sought not to benefit the rich, but to benefit the people. They are for the purpose of encouraging industry in order that employment may be plentiful. They seek to make business good in order that wages may be good. They encourage prosperity in order that poverty may be banished from the home. They, seek to lay the foundation which, through increased production, may, give the people a more bountiful supply of the necessaries of life, afford more leisure for the improvement of the mind, the appreciation of the arts of music and literature, sculpture and painting, and the beneficial enjoyment of outdoor sports and recreation, enlarge the resources which minister to charity and by all these means attempting to strengthen the spiritual life of the Nation.
 
 The policy of our foreign relations, casting aside any suggestion of force, rests solely on the foundation of peace, good will, and good works. We have sought, in our intercourse with other nations, better understandings through conference and exchange of views its befits beings endowed with reason. The results have been the gradual elimination of disputes, the settlement of controversies, and the establishment of a firmer friendship between America and the rest of the world that has ever existed tit any previous time.
 The example of this attitude has not been without its influence upon other countries. Acting upon it, an adjustment was made of the difficult problem of reparations. This was the second step toward peace in Europe. It paved the way for the agreements which were drawn tip at the Locarno Conference. When ratified, these will represent the third step toward peace. While they do not of themselves provide an economic rehabilitation, which is necessary for the progress of Europe, by strengthening the guarantees of peace they diminish the need for great armaments. If the energy which now goes into military effort is transferred to productive endeavor it will greatly assist economic progress.
 The Locarno agreements were made by the, European countries directly interested without ;any formal intervention of America, although on July 3 1 publicly advocated such agreements in an address made in Massachusetts. We have consistently refrained from intervening except when our help has been sought and we have felt it could be effectively given, as in the settlement of reparations and the London Conference. These recent Locarno agreements represent the success of this policy which we have been insisting ought to be adopted, of having European countries settle their own political problems without involving this country. This beginning seems to demonstrate that this policy is sound. It is exceedingly gratifying to observe this progress, both in its method and in its result promises so much that is beneficial to the world.
 When these agreements are finally adopted, they will provide guarantees of peace that make the present prime reliance upon force in some parts of Europe very much less necessary. The natural corollary to these treaties should be further international contracts for the limitation of armaments. This work was successfully begun at the Washington Conference. Nothing was done at that time concerning land forces because of European objection. Our standing army has been reduced to around 118,000, about the necessary police force for 115,000,000 people. We are not proposing to increase it, nor is it supposable that any foreign country looks with the slightest misapprehension upon our land forces. They do not menace anybody. They are rather a protection to everybody.
 The question of disarming upon land is so peculiarly European in its practical aspects that our country would look with particular gratitude upon any action which those countries might take to reduce their own military forces. This is in accordance with our policy of not intervening unless the European powers are unable to agree and make request for our assistance. Whenever they are able to agree of their own accord it is especially gratifying to its, and such agreements may be sure of our sympathetic support.
 It seems clear that it is the reduction of armies rather than of navies that is of the first importance to the world at the present time. We shall look with great satisfaction upon that effort and give it our approbation and encouragement. If that can be settled, we may more easily consider further reduction and limitation of naval armaments. For that purpose our country has constantly through its Executive, and through repeated acts of Congress, indicated its willingness to call such a conference. Under congressional sanction it would seem to be wise to participate in any conference of the great powers for naval limitation of armament proposed upon such conditions that it would hold a fair promise of being effective. The general policy of our country is for disarmament, and it ought not to hesitate to adopt any practical plan that might reasonably be expected to succeed. But it would not care to attend a conference which from its location or constituency would in all probability prove futile.
 In the further pursuit, of strengthening the bonds of peace and good will we have joined with other nations in an international conference held at Geneva and signed an agreement which will be laid before the Senate for ratification providing suitable measures for control and for publicity in international trade in arms, ammunition. and implements of war, and also executed a protocol providing for a prohibition of the use of poison gas in war, in accordance with the principles of Article 5 of the treaty relating thereto signed at tile Washington Conference. We are supporting the Pan American efforts that are being made toward the codification of international. law, and looking with sympathy oil the investigations conducted under philanthropic auspices of the proposal to agreements outlawing war. In accordance with promises made at the Washington Conference, we have urged the calling of and are now represented at the Chinese Customs Conference and on the Commission on Extraterritoriality, where it will be our policy so far as possible to meet the, aspirations of China in all ways consistent with the interests of the countries involved.
 
 Pending before the Senate for nearly three years is the proposal to adhere to the protocol establishing the Permanent Court of International Justice. A well-established line of precedents mark America's effort to effect the establishment of it court of this nature.. We took a leading part in laying the foundation on which it rests in the establishment of The Hague Court of Arbitration. It is that tribunal which nominates the judges who are elected by tile Council and Assembly of the League of Nations.
 The proposal submitted to the Senate was made dependent upon four conditions, the first of which is that by supporting the court we do not assume any obligations under the league; second, that we may participate upon an equality with other States in the election of judges; third, that the Congress shall determine what part of the expenses we shall bear; fourth, that the statute creating tile court shall not be amended without out consent; and to these I have proposed an additional condition to the effect that we are not to be bound by advisory opinions rendered without our consent.
 The court appears to be independent of the league. It is true tile judges are elected by tile Assembly and Council, but they are nominated by the Court of Arbitration, which we assisted to create and of which we are a part. The court was created by it statute, so-called, which is really a treaty made among some forty-eight different countries, that might properly be called a constitution of the court. This statute provides a method by which the judges are chosen ' so that when the Court of Arbitration nominates them and the Assembly and Council of the League elect them, they are not acting as instruments of the Court of Arbitration or instruments of the league, but as instruments of the statute.
 This will be even more apparent if our representatives sit with the members of the council and assembly in electing the judges. It is true they are paid through the league though not by the league, but by the countries which are members of the league and by our country if we accept the protocol. The judges are paid by the league only in the same sense that it could be said United States judges are paid by the Congress. The court derives all its authority from the statute and is so completely independent of the league that it could go on functioning if the league were disbanded, at least until the terms of the judges expired.
 The most careful provisions are made in the statute as to the qualifications of judges. Those who make the nominations are recommended to consult with their highest court of justice, their law schools and academies. The judges must be persons of high moral character, qualified to hold the highest judicial offices in that country, or be jurisconsults of recognized competence in international law. It must be assumed that these requirements will continue to be carefully met, and with America joining the countries already concerned it is difficult to comprehend how human ingenuity could better provide for the establishment of a court which would maintain its independence. It has to be recognized that independence is to a considerable extent a matter of ability, character, and personality. Some effort was made in the early beginnings to interfere with the independence of our Supreme Court. It did not succeed because of the quality of the men who made up that tribunal.
 It does not seem that the authority to give advisory opinions interferes with the independence of the court. Advisory opinions in and of themselves are not harmful, but may be used in such a way as to be very beneficial because they undertake to prevent injury rather than merely afford a remedy after the injury has been done. As a principle that only implies that the court shall function when proper application is made to it. Deciding the question involved upon issues submitted for an advisory opinion does not differ materially from deciding the question involved upon issues submitted by contending parties. Up to the present time the court has given an advisory opinion when it judged it had jurisdiction, and refused to give one when it judged it did not have jurisdiction. Nothing in the work of the court has yet been an indication that this is an impairment of its independence or that its practice differs materially from the giving of like opinions under the authority of the constitutions of several of our States.
 No provision of the statute seems to me to give this court any authority to be a political rather than a judicial court. We have brought cases in this country before our courts which, when they have been adjudged to be political, have been thereby dismissed. It is not improbable that political questions will be submitted to this court, but again up to the present time the court has refused to pass on political questions and our support would undoubtedly have a tendency to strengthen it in that refusal.
 We are not proposing to subject ourselves to any compulsory jurisdiction. If we support the court, we can never be obliged to submit any case which involves our interests for its decision. Our appearance before it would always be voluntary, for the purpose of presenting a case which we had agreed might be presented. There is  no more danger that others might bring cases before the court involving our interests which we did not wish to have brought, after we have adhered, and probably not so much, than there would be of bringing such cases if we do not adhere. I think that we would have the same legal or moral right to disregard such a finding in the one case that we would in the other.
 If we are going to support any court, it will not be one that we have set tip alone or which reflects only our ideals. Other nations have their customs and their institutions, their thoughts and their methods of life. If a court is going to be international, its composition will have to yield to what is good in all these various elements. Neither will it be possible to support a court which is exactly perfect, or under which we assume absolutely no obligations. If we are seeking that opportunity, we might as well declare that we are opposed to supporting any court. If any agreement is made, it will be because it undertakes to set up a tribunal which can do some of the things that other nations wish to have done. We shall not find ourselves bearing a disproportionate share of the world's burdens by our adherence, and we may as well remember that there is absolutely no escape for our country from bearing its share of the world's burdens in any case. We shall do far better service to ourselves and to others if we admit this and discharge our duties voluntarily, than if we deny it and are forced to meet the same obligations unwillingly
 It is difficult to imagine anything that would be more helpful to the world than stability, tranquility and international justice. We may say that we are contributing to these factors independently, but others less fortunately located do not and can not make a like contribution except through mutual cooperation. The old balance of power, mutual alliances, and great military forces were not brought bout by any mutual dislike for independence, but resulted from the domination of circumstances. Ultimately they were forced on us. Like all others engaged in the war whatever we said as a matter of fact we joined an alliance, we became a military power, we impaired our independence. We have more at stake than any one else in avoiding a repetition of that calamity. Wars do not, spring into existence. They arise from small incidents and trifling irritations which can be adjusted by an international court. We can contribute greatly to the advancement of our ideals by joining with other nations in maintaining such a tribunal.
 
 Gradually, settlements have been made which provide for the liquidation of debts due to our Government from foreign governments. Those made with Great Britain, Finland, Hungary Lithuania, and Poland have already been approved by the Congress. Since the adjournment, further agreements have been entered into with Belgium, Czechoslovakia, Latvia, Estonia, Italy, and Rumania. These 11 nations, which have already made settlements, represent $6,419,528,641 of the original principal of the loans. The principal sums without interest, still pending, are the debt of France, of $3,340,000,000; Greece, $15,000,000; Yugoslavia, $51,000,000; Liberia, $26,000; Russia, $192,000,000, which those at present in control have undertaken, openly to repudiate; Nicaragua, $84,000, which is being paid currently; and Austria, $24,000,000, on which by act of Congress a moratorium of 20 years has been granted. The only remaining sum is $12,000,000, due from Armenia, which has now ceased to exist as an independent nation.
 In accordance with the settlements made, the amount of principal and interest which is to be paid to the United States under these agreements aggregate $15,200,688,253.93. It is obvious that the remaining settlements, which will undoubtedly be made, will bring this sum up to an amount which will more than equal the principal due on our present national debt. While these settlements are very large in the aggregate, it has been felt that the terms granted were in all cases very generous. They impose no undue burden and are mutually beneficial in the observance of international faith and the improvement of international credit.
 Every reasonable effort will be made to secure agreements for liquidation with the remaining countries, whenever they are in such condition that they can be made. Those which have already been negotiated under the bipartisan commission established by the Congress have been made only after the most thoroughgoing and painstaking investigation, continued for a long time before meeting with the representatives of the countries concerned. It is believed that they represent in each instance the best that can be done and the wisest settlement that can be secured. One very important result is the stabilization of foreign currency, making exchange assist rather than embarrass our trade. Wherever sacrifices have been made of money, it will be more than amply returned in better understanding and friendship, while in so far as these adjustments will contribute to the financial stability of the debtor countries, to their good order, prosperity, and progress, they represent hope of improved trade relations and mutual contributions to the civilization of the world.
 
 Negotiations are progressing among the interested parties in relation to the final distribution of the assets in the hands of the Alien Property Custodian. Our Government and people are interested as creditors; the German Government and people are interested as debtors and owners of the seized property. Pending the outcome of these negotiations, I do not recommend any affirmative legislation. For the present we should continue in possession of this property which we hold as security for the settlement of claims due to our people and our Government.
 
 While not enough time has elapsed to afford a conclusive demonstration, such results as have been secured indicate that our immigration law is on the whole beneficial. It is undoubtedly a protection to the wage earners of this country. The situation should however, be carefully surveyed, in order to ascertain whether it is working a' needless hardship upon our own inhabitants. If it deprives them of the comfort and society of those bound to them by close family ties, such modifications should be adopted as will afford relief, always in accordance with the principle that our Government owes its first duty to our own people and that no alien, inhabitant of another country, has any legal rights whatever under our Constitution and laws. It is only through treaty, or through residence here that such rights accrue. But we should not, however, be forgetful of the obligations of a common humanity.
 While our country numbers among its best citizens many of those of foreign birth, yet those who now enter in violation of our laws bi that very act thereby place themselves in a class of undesirables. If investigation reveals that any considerable number are coming here in defiance of our immigration restrictions, it will undoubtedly create the necessity for the registration of all aliens. We ought to have no prejudice against an alien because lie is an alien. The standard which we apply to our inhabitants is that of manhood, not place of birth. Restrictive immigration is to a large degree for economic purposes. It is applied in order that we may not have a larger annual increment of good people within our borders than we can weave into our economic fabric in such a way as to supply their needs without undue injury to ourselves.
 
 Never before in time of peace has our country maintained so large and effective a military force. as it now has. The Army, Navy, Marine Corps, National Guard, and Organized Reserves represent a strength of about 558,400 men. These forces are well trained, well equipped, and high in morale.
 A sound selective service act giving broad authority for the mobilization in time of peril of all the resources of the country, both persons and materials, is needed to perfect our defense policy in accordance with our ideals of equality. The provision for more suitable housing to be paid for out of funds derived from the sale of excess lands, pending before the last Congress, ought to be brought forward and passed. Reasonable replacements ought to be made to maintain a sufficient ammunition reserve.
 The Navy has the full treaty tonnage of capital ships. Work is going forward in modernizing the older ones, building aircraft carriers, additional fleet submarines, and fast scout cruisers, but we are carefully avoiding anything that might be construed as a competition in armaments with other nations. The joint Army and Navy maneuvers at Hawaii, followed by the cruise of a full Battle Fleet to Australia and New Zealand, were successfully carried out. These demonstrations revealed a most satisfactory condition of the ships and the men engaged.
 Last year at my suggestion the General Board of the Navy made an investigation and report on the relation of aircraft to warships. As a result authorizations and appropriations were made for more scout cruisers and fleet submarines and for completing aircraft carriers and equipping them with necessary planes. Additional training in aviation was begun at the Military and Naval Academies. A method of coordination and cooperation of the Army and Navy and the principal aircraft builders is being perfected. At the suggestion of the Secretaries of War and Navy I appointed a special board to make a further study of the problem of aircraft.
 The report of the Air Board ought to be reassuring to the country, gratifying to the service and satisfactory to the Congress. It is thoroughly complete and represents the mature thought of the best talent in the country. No radical change in organization of the service seems necessary. The Departments of War, Navy, and Commerce should each be provided with an additional assistant secretary, not necessarily with statutory duties but who would be available under the direction of the Secretary to give especial attention to air navigation. We must have an air strength worthy of America. Provision should be made for two additional brigadier generals for the Army Air Service. Temporary rank corresponding to their duties should be awarded to active flying officers in both Army and Navy.
 Aviation is of great importance both for national defense and commercial development. We ought to proceed in its improvement by the necessary experiment and investigation. Our country is not behind in this art. It has made records for speed and for the excellence of its planes. It ought to go on maintaining its manufacturing plants capable of rapid production, giving national assistance to tile la in out of airways, equipping itself with a moderate number of planes and keeping an air force trained to the highest efficiency.
 While I am a thorough believer in national defense and entirely committed to the policy of adequate preparation, I am just as thoroughly opposed to instigating or participating in a policy of competitive armaments. Nor does preparation mean a policy of militarizing. Our people and industries are solicitous for the cause of 0111, country, and have great respect for the Army and Navy and foil the uniform worn by the men who stand ready at all times for our protection to encounter the dangers and perils necessary to military service, but all of these activities are to be taken not in behalf of aggression but in behalf of peace. They are the instruments by which we undertake to do our part to promote good will and support stability among all peoples.
 
 If any one desires to estimate the esteem in which the veterans of America are held by their fellow citizens, it is but necessary to remember that the current budget calls for an expenditure of about $650,000.000 in their behalf. This is nearly the amount of the total cost of the National Government, exclusive of the post office, before we entered the last war.
 At the two previous sessions of Congress legislation affecting veterans' relief was enacted and the law liberalized. This legislation brought into being a number of new provisions tending more nearly to meet the needs of our veterans, as well as afford the necessary authority to perfect the administration of these laws.
 Experience with the new legislation so far has clearly demonstrated its constructive nature. It has increased the benefits received by many and bas made eligible for benefits many others. Direct disbursements to the veteran or his dependents exceeding $21,000,000 have resulted, which otherwise would not have been made. The degree of utilization of our hospitals has increased through making facilities available to the incapacitated veteran regardless of service origin of the disability. This new legislation also has brought about a marked improvement of service to the veteran.
 The organizations of ex-service men have proposed additional legislative changes which you will consider, but until the new law and the modifications made at the last session of Congress are given a more thorough test further changes in the basic law should be few and made only after careful though sympathetic consideration.
 The principal work now before the Veterans' Bureau is the perfection of its organization and further improvements in service. Some minor legislative changes are deemed necessary to enable the bureau to retain that high grade of professional talent essential in handling the problems of the bureau. Such changes as tend toward the improvement of service and the carrying forward to completion of the hospital construction program are recommended for the consideration of the proper committees of Congress.
 With the enormous outlay that is now being made in behalf of the veterans and their dependents, with a tremendous war debt still requiring great annual expenditure, with the still high rate of taxation, while. every provision should be made for the relief of the disabled and the necessary care of dependents, the Congress may well consider whether the financial condition of the Government is not such that further bounty through the enlargement of general pensions and other emoluments ought not to be postponed.
 
 No doubt the position of agriculture as a whole has very much improved since the depression of three and four years ago. But there are many localities and many groups of individuals, apparently through no fault of their own, sometimes due to climatic conditions and sometimes to the prevailing price of a certain crop, still in a distressing condition. This is probably temporary, but it is none the less acute. National Government agencies, the Departments of Agriculture and Commerce, the Farm Loan Board, the intermediate credit banks, and the Federal Reserve Board are all cooperating to be of assistance and relief. On the other hand, there are localities and individuals who have had one of their most prosperous years. The general price level is fair, but here again there are exceptions both ways, some items being poor while others are excellent. In spite of a lessened production the farm income for this year will be about the same as last year and much above the three preceding years.
 Agriculture is a very complex industry. It does not consist of one problem, but of several. They can not be solved at one stroke. They have to be met in different ways, and small gains are not to be despised.
 It has appeared from all the investigations that I have been able to make that the farmers as a whole are determined to maintain the independence of their business., They do not wish to have meddling on the part of the Government or to be placed under the inevitable restrictions involved in any system of direct or indirect price-fixing, which would result from permitting the Government to operate in the agricultural markets. They are showing a very commendable skill in organizing themselves to transact their own business through cooperative. marketing, which will this year turn over about $2,500,000,000, or nearly one-fifth of the total agricultural business. In this they are receiving help from the Government. The Department of Agriculture should be strengthened in this facility, in order to be able to respond when these marketing associations 'want help. While it ought not to undertake undue regulation, it should be equipped to give prompt information on crop prospects, supply, demand, current receipts, imports, exports, and prices.
 A bill embodying these principles, which has been drafted under the advice and with the approval of substantially all the leaders and managers in the cooperative movement, will be presented to the Congress for its enactment. Legislation should also be considered to provide for leasing the unappropriated public domain for grazing purposes and adopting a uniform policy relative to grazing on the public lands and in the national forests.
 A more intimate relation should be established between agriculture and the other business activities of the Nation. They are mutually dependent and can each advance their own prosperity most by advancing the prosperity of the other. Meantime the Government will continue those activities which have resulted in an unprecedented amount of legislation and the pouring out of great sums of money during the last five years. The work for good roads, better land and water transportation, increased support for agricultural education, extension of credit facilities through the Farm Loan Boards and the intermediate credit banks, the encouragement of orderly marketing and a repression of wasteful speculation, will all be continued.
 Following every other depression, after a short period the price of farm produce has taken and maintained the lead in the advance. This advance had reached a climax before the war. Everyone will recall the discussion that went on for four or five years prior to 1914 concerning the high cost of living. This history is apparently beginning to repeat itself. While wholesale prices of other commodities have been declining, farm prices have been increasing. There is every reason to suppose that a new era in agricultural prosperity lies just before us, which will probably be unprecedented.
 
 The problem of Muscle Shoals seems to me to have assumed a place all out of proportion with its real importance. It probably does not represent in market value much more than a first-class battleship, yet it has been discussed in the Congress over a period of years and for months at a time. It ought to be developed for the production of nitrates primarily, and incidentally for power purposes. This would serve defensive, agricultural, and industrial purposes. I am in favor of disposing of this property to meet these purposes. The findings of the special commission will be transmitted to the Congress for their information. I am convinced that the best possible disposition can be made by direct authorization of the Congress. As a means of negotiation I recommend the immediate appointment of a small joint special committee chosen from the appropriate general standing committees of the House and Senate to receive bids, which when made should be reported with recommendations as to acceptance, upon which a law should be enacted, effecting a sale to the highest bidder who will agree to carry out these purposes.
 If anything were needed to demonstrate the almost utter incapacity of the National Government to deal directly with an industrial and commercial problem, it has been provided by our experience with this property. We have expended vast fortunes, we have taxed everybody, but we are unable to secure results, which benefit anybody. This property ought, to be transferred to private management under conditions which will dedicate it to the public purpose for which it was conceived.
 
 The National Government is committed to a policy of reclamation and irrigation which it desires to establish on a sound basis and continue in the interest of the localities concerned. Exhaustive studies have recently been made of Federal reclamation, which have resulted in improving the projects and adjusting many difficulties. About one third of the projects is in good financial condition, another third can probably be made profitable, while the other third is under unfavorable conditions. The Congress has already provided for a survey which will soon be embodied in a report. That ought to suggest a method of relief which will make unnecessary further appeals to the Congress. Unless this can be done, Federal reclamation will be considerably retarded. With the greatly increased cost of construction and operation, it has become necessary to plan in advance, by community organization and selective agriculture, methods sufficient to repay these increasing outlays.
 The human and economic interests of the farmer citizens suggest that the States should be required to exert some effort and assume some responsibility, especially in the intimate, detailed, and difficult work of securing settlers and developing farms which directly profit them, but only indirectly and remotely can reimburse the 'Nation. It is believed that the Federal Government should continue to be the agency for planning and constructing the great undertakings needed to regulate and bring into use the rivers the West, many of which are interstate in character, but the detailed work of creating agricultural communities and a rural civilization on the land made ready for reclamation ought to be either transferred to the State 'in its entirety or made a cooperative effort of the State and Federal Government.
 
 The maintenance of a merchant marine is of the utmost importance for national defense and the service of our commerce. We have a large number of ships engaged in that service. We also have a surplus supply, costly to care for, which ought to be sold. All the investigations that have been made under my direction, and those which have been prosecuted independently, have reached the conclusion that the fleet should be under the direct control of a single executive head, while the Shipping Board should exercise its judicial and regulatory functions in Accordance with its original conception. The report of Henry G. Dalton, a business man of broad experience, with a knowledge of shipping, made to me after careful investigation, will be transmitted for the information of the Congress, the studies pursued under the direction of the United States Chamber of Commerce will also be accessible, and added to these will be the report of the special committee of the House.
 I do not advocate the elimination of regional considerations, but it has become apparent that without centralized executive action the management of this great business, like the management of any other great business, will flounder in incapacity and languish under a division of council. A plain and unmistakable reassertion of this principle of unified control, which I have always been advised was the intention of the Congress to apply, is necessary to increase the efficiency of our merchant fleet.
 
 The perennial conflict in the coal industry is still going on to the great detriment of the wage earners, the owners, and especially to the public. With deposits of coal in this country capable of supplying its needs for hundreds of years, inability to manage and control this great resource for the benefit of all concerned is very close to a national economic failure. It has been the subject of repeated investigation and reiterated recommendation. Yet the industry seems never to have accepted modern methods of adjusting differences between employers and employees. The industry could serve the public much better and become subject to a much more effective method of control if regional consolidations and more freedom in the formation of marketing associations, under the supervision of the Department of Commerce, were permitted.
 At the present time the National Government has little or no authority to deal with this vital necessity of the life of the country. It has permitted itself to remain so powerless that its only attitude must be humble supplication. Authority should be lodged with the President and the Departments of Commerce and Labor, giving them power to deal with an emergency. They should be able to appoint temporary boards with authority to call for witnesses and documents, conciliate differences, encourage arbitration, and in case of threatened scarcity exercise control over distribution. Making the facts public under these circumstances through a statement from an authoritative source would be of great public benefit. The report of the last coal commission should be brought forward, reconsidered, and acted upon.
 
 Under the orderly processes of our fundamental institutions the Constitution was lately amended providing for national prohibition. The Congress passed an act for its enforcement, and similar acts have been provided by most of the States. It is the law of the land. It is the duty of all who come under its, jurisdiction to observe the spirit of that law, and it is the duty of the Department of Justice and the Treasury Department to enforce it. Action to prevent smuggling, illegal transportation in interstate commerce, abuse in the use of permits, and existence of sources of supply for illegal traffic is almost entirely imposed upon the Federal Government.
 Through treaties with foreign governments and increased activities of the Coast Guard, revenue agents, district attorneys and enforcement agents effort is being made to prevent these violations. But the Constitution also puts a concurrent duty on the States. We need their active and energetic cooperation, the vigilant action of their police, and the jurisdiction of their courts to assist in enforcement. I request of the people observance, of the public officers continuing efforts for enforcement, and of the Congress favorable action on the budget recommendation for the prosecution of this work.
 
 For many years our country has been employed in plans and M for the development of our intracoastal and inland waterways. This work along our coast is an important adjunct to our commerce. It will be carried on, together with the further opening up of our harbors, as our resources permit. The Government made an agreement during the war to take over the Cape Cod Canal, under which the owners made valuable concessions. This pledged faith of the Government ought to be redeemed.
 Two other main fields are under consideration. One is the Great Lakes and St. Lawrence, including the Erie Canal. This includes stabilizing the lake level, and is both a waterway and power project. A joint commission of the United States and Canada is working on plans and surveys which will not be completed until next April. No final determination can be made, apparently, except under treaty as to the participation of both countries. The other is the Mississippi River stem. This is almost entirely devoted to navigation. Work on the Ohio River will be completed in about three years. A modern channel connecting Chicago, New Orleans, Kansas City, and Pittsburgh should be laid out and work on the tributaries prosecuted. Some work is being done of a preparatory nature along the Missouri, and large expenditures are being made yearly in the lower reaches of the Mississippi and its tributaries which contribute both to flood control and navigation. Preliminary measures are being" taken on tile Colorado River project, which is exceedingly important for flood control, irrigation, power development, and water supply to the area concerned. It would seem to be very doubtful, however, whether it is practical to secure affirmative action of the Congress, except under a Joint agreement of the several States.
 The Government has already expended large sums upon scientific research and engineering investigation in promotion of this Colorado River project. The actual progress has been retarded for many years by differences among the seven States in the basin over their relative water rights and among different groups as to methods. In an attempt to settle the primary difficulty of the water rights, Congress authorized the Colorado River Commission which agreed on November 24, 1922, upon an interstate compact to settle these rights, subject to the ratification of the State legislatures and Congress. All seven States except Arizona at one time ratified, the Arizona Legislature making certain reservations which failed to meet the approval of the governor. Subsequently an attempt was made to establish the compact upon a six-State basis, but in this case California imposed reservations. There appears to be no division of opinion upon the major principles of the compact, but difficulty in separating contentions to methods of development from the discussion of it. It is imperative that flood control be undertaken for California and Arizona. preparation made for irrigation, for power, and for domestic water.
 Some or all of these questions are combined in every proposed development. The Federal Government is interested in some of these phases, State governments and municipalities and irrigation districts in others, and private corporations in still others. Because of all this difference of view it is most desirable that Congress should consider the creation of some agency that will be able to determine methods of improvement solely upon economic and engineering facts, that would be authorized to negotiate and settle, subject to the approval of Congress, the participation, rights, and obligations of each group in any particular works. Only by some such method can early construction be secured.
 
 Along with the development of navigation should go every possible encouragement for the development of our water power. While steam. still plays a dominant part, this is more and more becoming an era of electricity. Once installed, the cost is moderate, has not tended greatly to increase, and is entirely free from the unavoidable dirt and disagreeable features attendant upon the burning of coal. Every facility should be extended for the connection of the various units into a superpower plant, capable at all times of a current increasing uniformity over the entire system.
 
 The railroads throughout the country are in a fair state of prosperity. Their service is good and their supply of cars is abundant. Their condition would be improved and the public better served by a system of consolidations. I recommend that the Congress authorize such consolidations tinder the supervision of the Interstate Commerce Commission, with power to approve or disapprove when proposed parts are excluded or new parts added. I am informed that the railroad managers and their employees have reached a substantial agreement as to what legislation is necessary to regulate and improve their relationship. Whenever they bring forward such proposals, which seem sufficient also to protect the interests of the public, they should be enacted into law.
 It is gratifying to report that both the railroad managers and railroad employees are providing boards for the mutual adjustment of differences in harmony with the principles of conference, conciliation, and arbitration. The solution of their problems ought to be an example to all other industries. Those who ask the protections of civilization should be ready to use the methods of civilization.
 A strike in modern industry has many of the aspects of war in the modern world. It injures labor and it injures capital. If the industry involved is a basic one, it reduces the necessary economic surplus and, increasing the cost of living, it injures the economic welfare and general comfort of the whole people. It also involves a deeper cost. It tends to embitter and divide the community into warring classes and thus weakens the unity and power of our national life.
 Labor can make no permanent gains at the cost of the general welfare. All the victories won by organized labor in the past generation have been won through the support of public opinion. The manifest inclination of the managers and employees of the railroads to adopt a policy of action in harmony with these principles marks a new epoch in our industrial life.
 
 The time has come for careful investigation of the expenditures and success of the laws by which we have undertaken to administer our outlying possessions. A very large amount of money is being expended for administration in Alaska. It appears so far out of proportion to the number of inhabitants and the amount of production as to indicate cause for thorough investigation. Likewise consideration should be given to the experience under the law which governs the Philippines. From such reports as reach me there are indications that more authority should be given to the Governor General, so that he will not be so dependent upon the local legislative body to render effective our efforts to set an example of the sound administration and good government, which is so necessary for the preparation of the Philippine people for self-government under ultimate independence. If they are to be trained in these arts, it is our duty to provide for them the best that there is.
 
 The act of March 3, 1911, ought to be amended so that the term of years of service of judges of any court of the United States requisite for retirement with pay shall 6e computed to include not only continuous but aggregate service.
 
 The Government ought always to be alert on the side of the humanities. It Ought to encourage provisions for economic justice for the defenseless. It ought to extend its relief through its national and local agencies, as may be appropriate in each case, to the suffering and the needy. It ought to be charitable.
 Although more than 40 of our States have enacted measures in aid of motherhood, the District of Columbia is still without such a law. A carefully considered bill will be presented, which ought to have most thoughtful consideration in order that the Congress may adopt a measure which will be hereafter a model for all parts of the Union.
 
 In 1883 the Congress passed the civil service act, which from a modest beginning of 14,000 employees has grown until there are now 425,000 in the classified service. This has removed the clerical force of the Nation from the wasteful effects of the spoils system and made it more stable and efficient. The time has come to consider classifying all postmasters, collectors of customs, collectors of internal revenue, and prohibition agents, by an act covering in those at present in office, except when otherwise provided by Executive order.
 The necessary statistics are now being gathered to form the basis of a valuation of the civil service retirement fund based on current conditions of the service. It is confidently expected that this valuation will be completed in time to be made available to the Congress during the present session. It will afford definite knowledge of existing, and future liabilities under the present law and determination OF liabilities under any proposed change in the present law. We should have this information before creating further obligations for retirement annuities which will become liabilities to be met in the future from the money of the taxpayer.
 The classification act of 1923, with the subsequent legislative action providing for adjustment of the compensation of field service positions, has operated materially to improve employment conditions in the Federal service. The administration of the act is in the hands of an impartial board, functioning without the necessity of a direct appropriation. It would be inadvisable at this time to place in other hands the administration of this act.
 
 The proper function of the Federal Trade Commission is to supervise and correct those practices in commerce which are detrimental to fair competition. In this it performs a useful function and should be continued and supported. It was designed also to be a help to honest business. In my message to the Sixty-eighth Congress I recommended that changes in the procedure then existing be made. Since then the commission by its own action has reformed its rules, giving greater speed and economy in the disposal of its cases and full opportunity for those accused to be heard. These changes are improvements and, if necessary, provision should be made for their permanency.
 
 No final action has yet been taken on the measure providing for the reorganization of the various departments. I therefore suggest that this measure, which will be of great benefit to the efficient and economical administration of the business of the Government, be brought forward and passed.
 
 Nearly one-tenth of our population consists of the Negro race. The progress which they have made in all the arts of civilization in the last 60 years is almost beyond belief. Our country has no more loyal citizens. But they do still need sympathy, kindness, and helpfulness. They need reassurance that the requirements of the Government and society to deal out to them even-handed justice will be met. They should be protected from all violence and supported in the peaceable enjoyment of the fruits of their labor. Those who do violence to them should be punished for their crimes. No other course of action is worthy of the American people.
 Our country has many elements in its population, many different modes of thinking and living, all of which are striving in their own way to be loyal to the high ideals worthy of the crown of American citizenship. It is fundamental of our institutions that they seek to guarantee to all our inhabitants the right to live their own lives under the protection of the public law. This does not include any license to injure others materially, physically, morally, to Incite revolution, or to violate the established customs which have long bad the sanction of enlightened society.
 But it does mean the full right to liberty and equality before the law without distinction of race or creed. This condition can not be granted to others, or enjoyed by ourselves, except by the application of the principle of broadest tolerance. Bigotry is only another name for slavery. It reduces to serfdom not only those against whom it is directed, but also those who seek to apply it. An enlarged freedom can only be secured by the application of the golden rule. No other utterance ever presented such a practical rule of life.
 
 It is apparent that we are reaching into an era of great general prosperity. It will continue only so long as we shall use it properly. After all, there is but a fixed quantity of wealth in this country at any fixed time. The only way that we can all secure more of it is to create more. The element of time enters into production, If the people have sufficient moderation and contentment to be willing to improve their condition by the process of enlarging production, eliminating waste, and distributing equitably, a prosperity almost without limit lies before its. If the people are to be dominated by selfishness, seeking immediate riches by nonproductive speculation and by wasteful quarreling over the returns from industry, they will be confronted by the inevitable results of depression and privation. If they will continue industrious and thrifty, contented with fair wages and moderate profits, and the returns which accrue from tile development of oar natural resources, our prosperity will extend itself indefinitely.
 In all your deliberations you should remember that the purpose of legislation is to translate principles into action. It is an effort to have our country be better by doing better. Because the thoughts and ways of people are firmly fixed and not easily changed, the field within which immediate improvement can be secured is very narrow. Legislation can provide opportunity. Whether it is taken advantage of or not depends upon the people themselves. The Government of the United States has been created by the people. It is solely responsible to them. It will be most successful if it is conducted solely for their benefit. All its efforts would be of little avail unless they brought more justice, more enlightenment, more happiness and prosperity into the home. This means an opportunity to observe religion, secure education, and earn a living under a reign of law and order. It is the growth and improvement of the material and spiritual life of the Nation. We shall not be able to gain these ends merely by our own action. If they come at all, it will be because we have been willing to work in harmony with the abiding purpose of a Divine Providence.
In meeting the constitutional requirement of informing the Congress upon the state of the Union, it is exceedingly gratifying to report that the general condition is one of progress and prosperity. Here and there are comparatively small and apparently temporary difficulties needing adjustment and improved administrative methods, such as are always to be expected, but in the fundamentals of government and business the results demonstrate that we are going in the right direction. The country does not appear to require radical departures from the policies already adopted so much as it needs a further extension of these policies and the improvement of details. The age of perfection is still in the somewhat distant future, but it is more in danger of being retarded by mistaken Government activity than it is from lack of legislation. We are by far the most likely to accomplish permanent good if we proceed with moderation. In our country the people are sovereign and independent, and must accept the resulting responsibilities. It is their duty to support themselves and support the Government. That is the business of the Nation, whatever the charity of the Nation may require. The functions which the Congress are to discharge are not those of local government but of National Government. The greatest solicitude should be exercised to prevent any encroachment upon the rights of the States or their various political subdivisions. Local self-government is one of our most precious possessions. It is the greatest contributing factor to the stability strength liberty, and progress of the Nation. It ought not to be in ringed by assault or undermined by purchase. It ought not to abdicate its power through weakness or resign its authority through favor. It does not at all follow that because abuses exist it is the concern of the Federal Government to attempt their reform. Society is in much more danger from encumbering the National Government beyond its wisdom to comprehend, or its ability to administer, than from leaving the local communities to bear their own burdens and remedy their own evils. Our local habit and custom is so strong, our variety of race and creed is so great the Federal authority is so tenuous, that the area within which it can function successfully is very limited. The wiser policy is to leave the localities, so far as we can, possessed of their own sources of revenue and charged with their own obligations. It is a fundamental principle of our country that the people are sovereign. While they recognize the undeniable authority of the state, they have established as its instrument a Government of limited powers. They hold inviolate in their own hands the jurisdiction over their own freedom and the ownership of their own property. Neither of these can be impaired except by due process of law. The wealth of our country is not public wealth, but private wealth. It does not belong to the Government, it belongs to the people. The Government has no justification in taking private Property except for a public purpose. It is always necessary to keep these principles in mind in the laying of taxes and in the making of appropriations. No right exists to levy on a dollar, or to order the expenditure of a dollar, of the money of the people, except for a necessary public purpose duly authorized by the Constitution. The power over the purse is the power over liberty. That is the legal limitation within which the Congress can act, How it will, proceed within this limitation is always a question of policy. When the country is prosperous and free from debt, when the rate of taxation is low, opportunity exists for assuming new burdens and undertaking new enterprises. Such a condition now prevails only to a limited extent. All proposals for assuming new obligations ought to be postponed, unless they are reproductive capital investments or are such as are absolutely necessary at this time. We still have an enormous debt of over $20,000,000,000, on which the interest and sinking-fund requirements are $1,320,000,000. Our appropriations for the Pension Office and the Veterans' Bureau are $600,000,000. The War and Navy Departments call for $642,000,000. Other requirements, exclusive of the Post Office ' which is virtually self-sustaining, brought the appropriations for the current year up to almost $3,100,060,000. This shows an expenditure of close to $30 for every inhabitant of our country. For the average family of five it means a tax, directly or indirectly paid, of about $150 for national purposes alone. The local tax adds much more. These enormous expenditures ought not to be increased, but through every possible effort they ought to be reduced. Only one of these great items can be ultimately extinguished. That is the item of our war debt. Already this has been reduced to about $6,000,000,000, which means an annual saving in interest of close to $250,000,000. The present interest charge is about $820,000,000 yearly. It would seem to be obvious that the sooner this debt can be retired the more the taxpayers will save in interest and the easier it will be to secure funds with which to prosecute needed running expenses, constructions, and improvements. This item of $820,000,000 for interest is a heavy charge on all the people of the country, and it seems to me that we might well consider whether it is not greatly worth while to dispense with it as early as possible by retiring the principal debt which it is required to serve. It has always been our policy to retire our debts. That of the Revolutionary War period, notwithstanding the additions made in 1812, was paid by 1835. and the Civil War debt within 23 years. Of the amount already paid, over $1,000,000,000 is a reduction in cash balances. That source is exhausted. Over one and two-thirds billions of dollars was derived from excess receipts. Tax reduction eliminates that. The sale of surplus war materials has been another element of our income. That is practically finished. With these eliminated, the reduction of the debt has been only about $500,000,000 each year, not an excessive sum on so large a debt. Proposals have been made to extend the payment over a period of 62 years. If $1,000,000,000 is paid at the end of 20 years, the cost to the taxpayers is the principal and, I f the interest is 4% per cent, a total of $1,850,000,000. If the same sum is paid at the end of 62 years, the cost is $3,635,000,000, or almost double. Here is another consideration: Compared with its purchasing power in 1913, the dollar we borrowed represented but 52 cents. As the value of our dollar increases, due to the falling prices of commodities, the burden of our debt increases. It has now risen to 631/2 cents. The taxpayer will be required to produce nearly twice the amount of commodities to pay his debt if the dollar returns to the 1913 value. The more we pay while prices are high, the easier it will be. Deflation of government after a war period is slower than deflation of business, where curtailment is either prompt and effective or disaster follows. There is room for further economy in the cost of the Federal Government, but a co n of current expenditures with pre-war expenditures is not able to the efficiency with which Government business is now being done. The expenditures of 19161 the last pre-war year, were $742,000,000, and in 1925 over $3,500,000,000, or nearly five times as great. If we subtract expenditures for debt retirements and interest, veterans' relief, increase of pensions, and other special outlays, consisting of refunds, trust investments, and like charges, we find that the general expenditures of the Government in 1925 were slightly more than twice as large as in 1916. As prices in 1925 were approximately 40 per cent higher than in 1916, the cost of the same Government must also have increased. But the Government is not 'the same. It is more expensive to collect the much greater revenue necessary and to administer our great debt. We have given enlarged and improved services to agriculture and commerce. Above all, America has grown in population and wealth. Government expenditures must always share in this growth. Taking into account the factors I have mentioned, I believe that present Federal expenses are not far out of line with pre-war expenses. We have nearly accomplished the deflation. This does not mean that further economies will not come. As we reduce our debt our interest charges decline. There are many details yet to correct. The real improvement, however, must come not from additional curtailment of expenses, but by a more intelligent, more ordered spending. Our economy must be constructive. While we should avoid as far as possible increases in permanent current expenditures, oftentimes a capital outlay like internal improvements will result in actual constructive saving. That is economy in its best sense. It is an avoidance of waste that there may be the means for an outlay to-day which will bring larger returns to-morrow. We should constantly engage in scientific studies of our future requirements and adopt an orderly program for their service. Economy is the method by which we prepare to-day to afford the improvements of to-morrow. A mere policy of economy without any instrumentalities for putting it into operation would be very ineffective. The Congress has wisely set up the Bureau of the Budget to investigate and inform the President what recommendations he ought to make for current appropriations. This gives a centralized authority where a general and comprehensive understanding can be reached of the sources of income and the most equitable distribution of expenditures. How well it has worked is indicated by the fact that the departmental estimates for 1922, before the budget law, were $4,068,000,000 while the Budget estimates for 1927 are $3,156,000,000. This latter figure shows the reductions in departmental estimates for the coming year made possible by the operation of the Budget system that the Congress has provided. But it is evidently not enough to have care in making appropriations without any restraint upon expenditure. The Congress has provided that check by establishing the office of Comptroller General. The purpose of maintaining the Budget Director and the Comptroller General is to secure economy and efficiency in Government expenditure. No better method has been devised for the accomplishment of that end. These offices can not be administered in all the various details without making some errors both of fact and of judgment. But the important consideration remains that these are the instrumentalities of the Congress and that no other plan has ever been adopted which was so successful in promoting economy and efficiency. The Congress has absolute authority over the appropriations and is free to exercise its judgment, as the evidence may warrant, in increasing or decreasing budget recommendations. But it ought to resist every effort to weaken or break down this most beneficial system of supervising appropriations and expenditures. Without it all the claim of economy would be a mere pretense. The purpose of reducing expenditures is to secure a reduction in taxes. That purpose is about to be realized. With commendable promptness the Ways and Means Committee of the House has undertaken in advance of the meeting of the Congress to frame a revenue act. As the bill has proceeded through the committee it has taken on a nonpartisan character, and both Republicans and Democrats have joined in a measure which embodies many sound principles of tax reform. The bill will correct substantially the economic defects injected into the revenue act of 1924, as well as many which have remained as war-time legacies. In its present form it should provide sufficient revenue for the Government. The excessive surtaxes have been reduced, estate tax rates arv restored to more reasonable figures, with every prospect of withdrawing from the field when the States have had the opportunity to correct the abuses in their own inheritance tax laws, the gift tax and publicity section are to be repealed many miscellaneous taxes are lowered or abandoned, and the Board of Tax Appeals and the administrative features of the law are improved and strengthened. I approve of the bill in principle. In so far as income-tax exemptions are concerned, it seems, to me the committee has gone as far as it is Safe to go and somewhat further than I should have gone. Any further extension along these lines would, in my opinion, impair tile integrity of our income-tax system. I am advised that the bill will. be through the House by Christmas. For this prompt action the country call thank the good sense of the Ways and Means Committee in framing an economic measure upon economic considerations. If this attitude continues to be reflected through the Congress, the taxpayer will have his relief by the time his March 15th installment of income taxes is due. Nonpartisan effort means certain, quick action. Determination of a revenue law definitely, promptly and solely as a revenue law, is one of the greatest gifts a legislature can bestow upon its constituents. I commend the example of file Ways and Means Committee. If followed, it will place sound legislation upon the books in time to give the taxpayers the full benefit of tax reduction next year. This means that the bill should reach me prior to March 15. All these economic results are being sought not to benefit the rich, but to benefit the people. They are for the purpose of encouraging industry in order that employment may be plentiful. They seek to make business good in order that wages may be good. They encourage prosperity in order that poverty may be banished from the home. They, seek to lay the foundation which, through increased production, may, give the people a more bountiful supply of the necessaries of life, afford more leisure for the improvement of the mind, the appreciation of the arts of music and literature, sculpture and painting, and the beneficial enjoyment of outdoor sports and recreation, enlarge the resources which minister to charity and by all these means attempting to strengthen the spiritual life of the Nation. The policy of our foreign relations, casting aside any suggestion of force, rests solely on the foundation of peace, good will, and good works. We have sought, in our intercourse with other nations, better understandings through conference and exchange of views its befits beings endowed with reason. The results have been the gradual elimination of disputes, the settlement of controversies, and the establishment of a firmer friendship between America and the rest of the world that has ever existed tit any previous time. The example of this attitude has not been without its influence upon other countries. Acting upon it, an adjustment was made of the difficult problem of reparations. This was the second step toward peace in Europe. It paved the way for the agreements which were drawn tip at the Locarno Conference. When ratified, these will represent the third step toward peace. While they do not of themselves provide an economic rehabilitation, which is necessary for the progress of Europe, by strengthening the guarantees of peace they diminish the need for great armaments. If the energy which now goes into military effort is transferred to productive endeavor it will greatly assist economic progress. The Locarno agreements were made by the, European countries directly interested without ;any formal intervention of America, although on July 3 1 publicly advocated such agreements in an address made in Massachusetts. We have consistently refrained from intervening except when our help has been sought and we have felt it could be effectively given, as in the settlement of reparations and the London Conference. These recent Locarno agreements represent the success of this policy which we have been insisting ought to be adopted, of having European countries settle their own political problems without involving this country. This beginning seems to demonstrate that this policy is sound. It is exceedingly gratifying to observe this progress, both in its method and in its result promises so much that is beneficial to the world. When these agreements are finally adopted, they will provide guarantees of peace that make the present prime reliance upon force in some parts of Europe very much less necessary. The natural corollary to these treaties should be further international contracts for the limitation of armaments. This work was successfully begun at the Washington Conference. Nothing was done at that time concerning land forces because of European objection. Our standing army has been reduced to around 118,000, about the necessary police force for 115,000,000 people. We are not proposing to increase it, nor is it supposable that any foreign country looks with the slightest misapprehension upon our land forces. They do not menace anybody. They are rather a protection to everybody. The question of disarming upon land is so peculiarly European in its practical aspects that our country would look with particular gratitude upon any action which those countries might take to reduce their own military forces. This is in accordance with our policy of not intervening unless the European powers are unable to agree and make request for our assistance. Whenever they are able to agree of their own accord it is especially gratifying to its, and such agreements may be sure of our sympathetic support. It seems clear that it is the reduction of armies rather than of navies that is of the first importance to the world at the present time. We shall look with great satisfaction upon that effort and give it our approbation and encouragement. If that can be settled, we may more easily consider further reduction and limitation of naval armaments. For that purpose our country has constantly through its Executive, and through repeated acts of Congress, indicated its willingness to call such a conference. Under congressional sanction it would seem to be wise to participate in any conference of the great powers for naval limitation of armament proposed upon such conditions that it would hold a fair promise of being effective. The general policy of our country is for disarmament, and it ought not to hesitate to adopt any practical plan that might reasonably be expected to succeed. But it would not care to attend a conference which from its location or constituency would in all probability prove futile. In the further pursuit, of strengthening the bonds of peace and good will we have joined with other nations in an international conference held at Geneva and signed an agreement which will be laid before the Senate for ratification providing suitable measures for control and for publicity in international trade in arms, ammunition. and implements of war, and also executed a protocol providing for a prohibition of the use of poison gas in war, in accordance with the principles of Article 5 of the treaty relating thereto signed at tile Washington Conference. We are supporting the Pan American efforts that are being made toward the codification of international. law, and looking with sympathy oil the investigations conducted under philanthropic auspices of the proposal to agreements outlawing war. In accordance with promises made at the Washington Conference, we have urged the calling of and are now represented at the Chinese Customs Conference and on the Commission on Extraterritoriality, where it will be our policy so far as possible to meet the, aspirations of China in all ways consistent with the interests of the countries involved. Pending before the Senate for nearly three years is the proposal to adhere to the protocol establishing the Permanent Court of International Justice. A well-established line of precedents mark America's effort to effect the establishment of it court of this nature.. We took a leading part in laying the foundation on which it rests in the establishment of The Hague Court of Arbitration. It is that tribunal which nominates the judges who are elected by tile Council and Assembly of the League of Nations. The proposal submitted to the Senate was made dependent upon four conditions, the first of which is that by supporting the court we do not assume any obligations under the league; second, that we may participate upon an equality with other States in the election of judges; third, that the Congress shall determine what part of the expenses we shall bear; fourth, that the statute creating tile court shall not be amended without out consent; and to these I have proposed an additional condition to the effect that we are not to be bound by advisory opinions rendered without our consent. The court appears to be independent of the league. It is true tile judges are elected by tile Assembly and Council, but they are nominated by the Court of Arbitration, which we assisted to create and of which we are a part. The court was created by it statute, so-called, which is really a treaty made among some forty-eight different countries, that might properly be called a constitution of the court. This statute provides a method by which the judges are chosen ' so that when the Court of Arbitration nominates them and the Assembly and Council of the League elect them, they are not acting as instruments of the Court of Arbitration or instruments of the league, but as instruments of the statute. This will be even more apparent if our representatives sit with the members of the council and assembly in electing the judges. It is true they are paid through the league though not by the league, but by the countries which are members of the league and by our country if we accept the protocol. The judges are paid by the league only in the same sense that it could be said United States judges are paid by the Congress. The court derives all its authority from the statute and is so completely independent of the league that it could go on functioning if the league were disbanded, at least until the terms of the judges expired. The most careful provisions are made in the statute as to the qualifications of judges. Those who make the nominations are recommended to consult with their highest court of justice, their law schools and academies. The judges must be persons of high moral character, qualified to hold the highest judicial offices in that country, or be jurisconsults of recognized competence in international law. It must be assumed that these requirements will continue to be carefully met, and with America joining the countries already concerned it is difficult to comprehend how human ingenuity could better provide for the establishment of a court which would maintain its independence. It has to be recognized that independence is to a considerable extent a matter of ability, character, and personality. Some effort was made in the early beginnings to interfere with the independence of our Supreme Court. It did not succeed because of the quality of the men who made up that tribunal. It does not seem that the authority to give advisory opinions interferes with the independence of the court. Advisory opinions in and of themselves are not harmful, but may be used in such a way as to be very beneficial because they undertake to prevent injury rather than merely afford a remedy after the injury has been done. As a principle that only implies that the court shall function when proper application is made to it. Deciding the question involved upon issues submitted for an advisory opinion does not differ materially from deciding the question involved upon issues submitted by contending parties. Up to the present time the court has given an advisory opinion when it judged it had jurisdiction, and refused to give one when it judged it did not have jurisdiction. Nothing in the work of the court has yet been an indication that this is an impairment of its independence or that its practice differs materially from the giving of like opinions under the authority of the constitutions of several of our States. No provision of the statute seems to me to give this court any authority to be a political rather than a judicial court. We have brought cases in this country before our courts which, when they have been adjudged to be political, have been thereby dismissed. It is not improbable that political questions will be submitted to this court, but again up to the present time the court has refused to pass on political questions and our support would undoubtedly have a tendency to strengthen it in that refusal. We are not proposing to subject ourselves to any compulsory jurisdiction. If we support the court, we can never be obliged to submit any case which involves our interests for its decision. Our appearance before it would always be voluntary, for the purpose of presenting a case which we had agreed might be presented. There is no more danger that others might bring cases before the court involving our interests which we did not wish to have brought, after we have adhered, and probably not so much, than there would be of bringing such cases if we do not adhere. I think that we would have the same legal or moral right to disregard such a finding in the one case that we would in the other. If we are going to support any court, it will not be one that we have set tip alone or which reflects only our ideals. Other nations have their customs and their institutions, their thoughts and their methods of life. If a court is going to be international, its composition will have to yield to what is good in all these various elements. Neither will it be possible to support a court which is exactly perfect, or under which we assume absolutely no obligations. If we are seeking that opportunity, we might as well declare that we are opposed to supporting any court. If any agreement is made, it will be because it undertakes to set up a tribunal which can do some of the things that other nations wish to have done. We shall not find ourselves bearing a disproportionate share of the world's burdens by our adherence, and we may as well remember that there is absolutely no escape for our country from bearing its share of the world's burdens in any case. We shall do far better service to ourselves and to others if we admit this and discharge our duties voluntarily, than if we deny it and are forced to meet the same obligations unwillingly It is difficult to imagine anything that would be more helpful to the world than stability, tranquility and international justice. We may say that we are contributing to these factors independently, but others less fortunately located do not and can not make a like contribution except through mutual cooperation. The old balance of power, mutual alliances, and great military forces were not brought bout by any mutual dislike for independence, but resulted from the domination of circumstances. Ultimately they were forced on us. Like all others engaged in the war whatever we said as a matter of fact we joined an alliance, we became a military power, we impaired our independence. We have more at stake than any one else in avoiding a repetition of that calamity. Wars do not, spring into existence. They arise from small incidents and trifling irritations which can be adjusted by an international court. We can contribute greatly to the advancement of our ideals by joining with other nations in maintaining such a tribunal. Gradually, settlements have been made which provide for the liquidation of debts due to our Government from foreign governments. Those made with Great Britain, Finland, Hungary Lithuania, and Poland have already been approved by the Congress. Since the adjournment, further agreements have been entered into with Belgium, Czechoslovakia, Latvia, Estonia, Italy, and Rumania. These 11 nations, which have already made settlements, represent $6,419,528,641 of the original principal of the loans. The principal sums without interest, still pending, are the debt of France, of $3,340,000,000; Greece, $15,000,000; Yugoslavia, $51,000,000; Liberia, $26,000; Russia, $192,000,000, which those at present in control have undertaken, openly to repudiate; Nicaragua, $84,000, which is being paid currently; and Austria, $24,000,000, on which by act of Congress a moratorium of 20 years has been granted. The only remaining sum is $12,000,000, due from Armenia, which has now ceased to exist as an independent nation. In accordance with the settlements made, the amount of principal and interest which is to be paid to the United States under these agreements aggregate $15,200,688,253.93. It is obvious that the remaining settlements, which will undoubtedly be made, will bring this sum up to an amount which will more than equal the principal due on our present national debt. While these settlements are very large in the aggregate, it has been felt that the terms granted were in all cases very generous. They impose no undue burden and are mutually beneficial in the observance of international faith and the improvement of international credit. Every reasonable effort will be made to secure agreements for liquidation with the remaining countries, whenever they are in such condition that they can be made. Those which have already been negotiated under the bipartisan commission established by the Congress have been made only after the most thoroughgoing and painstaking investigation, continued for a long time before meeting with the representatives of the countries concerned. It is believed that they represent in each instance the best that can be done and the wisest settlement that can be secured. One very important result is the stabilization of foreign currency, making exchange assist rather than embarrass our trade. Wherever sacrifices have been made of money, it will be more than amply returned in better understanding and friendship, while in so far as these adjustments will contribute to the financial stability of the debtor countries, to their good order, prosperity, and progress, they represent hope of improved trade relations and mutual contributions to the civilization of the world. Negotiations are progressing among the interested parties in relation to the final distribution of the assets in the hands of the Alien Property Custodian. Our Government and people are interested as creditors; the German Government and people are interested as debtors and owners of the seized property. Pending the outcome of these negotiations, I do not recommend any affirmative legislation. For the present we should continue in possession of this property which we hold as security for the settlement of claims due to our people and our Government. While not enough time has elapsed to afford a conclusive demonstration, such results as have been secured indicate that our immigration law is on the whole beneficial. It is undoubtedly a protection to the wage earners of this country. The situation should however, be carefully surveyed, in order to ascertain whether it is working a' needless hardship upon our own inhabitants. If it deprives them of the comfort and society of those bound to them by close family ties, such modifications should be adopted as will afford relief, always in accordance with the principle that our Government owes its first duty to our own people and that no alien, inhabitant of another country, has any legal rights whatever under our Constitution and laws. It is only through treaty, or through residence here that such rights accrue. But we should not, however, be forgetful of the obligations of a common humanity. While our country numbers among its best citizens many of those of foreign birth, yet those who now enter in violation of our laws bi that very act thereby place themselves in a class of undesirables. If investigation reveals that any considerable number are coming here in defiance of our immigration restrictions, it will undoubtedly create the necessity for the registration of all aliens. We ought to have no prejudice against an alien because lie is an alien. The standard which we apply to our inhabitants is that of manhood, not place of birth. Restrictive immigration is to a large degree for economic purposes. It is applied in order that we may not have a larger annual increment of good people within our borders than we can weave into our economic fabric in such a way as to supply their needs without undue injury to ourselves. Never before in time of peace has our country maintained so large and effective a military force. as it now has. The Army, Navy, Marine Corps, National Guard, and Organized Reserves represent a strength of about 558,400 men. These forces are well trained, well equipped, and high in morale. A sound selective service act giving broad authority for the mobilization in time of peril of all the resources of the country, both persons and materials, is needed to perfect our defense policy in accordance with our ideals of equality. The provision for more suitable housing to be paid for out of funds derived from the sale of excess lands, pending before the last Congress, ought to be brought forward and passed. Reasonable replacements ought to be made to maintain a sufficient ammunition reserve. The Navy has the full treaty tonnage of capital ships. Work is going forward in modernizing the older ones, building aircraft carriers, additional fleet submarines, and fast scout cruisers, but we are carefully avoiding anything that might be construed as a competition in armaments with other nations. The joint Army and Navy maneuvers at Hawaii, followed by the cruise of a full Battle Fleet to Australia and New Zealand, were successfully carried out. These demonstrations revealed a most satisfactory condition of the ships and the men engaged. Last year at my suggestion the General Board of the Navy made an investigation and report on the relation of aircraft to warships. As a result authorizations and appropriations were made for more scout cruisers and fleet submarines and for completing aircraft carriers and equipping them with necessary planes. Additional training in aviation was begun at the Military and Naval Academies. A method of coordination and cooperation of the Army and Navy and the principal aircraft builders is being perfected. At the suggestion of the Secretaries of War and Navy I appointed a special board to make a further study of the problem of aircraft. The report of the Air Board ought to be reassuring to the country, gratifying to the service and satisfactory to the Congress. It is thoroughly complete and represents the mature thought of the best talent in the country. No radical change in organization of the service seems necessary. The Departments of War, Navy, and Commerce should each be provided with an additional assistant secretary, not necessarily with statutory duties but who would be available under the direction of the Secretary to give especial attention to air navigation. We must have an air strength worthy of America. Provision should be made for two additional brigadier generals for the Army Air Service. Temporary rank corresponding to their duties should be awarded to active flying officers in both Army and Navy. Aviation is of great importance both for national defense and commercial development. We ought to proceed in its improvement by the necessary experiment and investigation. Our country is not behind in this art. It has made records for speed and for the excellence of its planes. It ought to go on maintaining its manufacturing plants capable of rapid production, giving national assistance to tile la in out of airways, equipping itself with a moderate number of planes and keeping an air force trained to the highest efficiency. While I am a thorough believer in national defense and entirely committed to the policy of adequate preparation, I am just as thoroughly opposed to instigating or participating in a policy of competitive armaments. Nor does preparation mean a policy of militarizing. Our people and industries are solicitous for the because of 0111, country, and have great respect for the Army and Navy and foil the uniform worn by the men who stand ready at all times for our protection to encounter the dangers and perils necessary to military service, but all of these activities are to be taken not in behalf of aggression but in behalf of peace. They are the instruments by which we undertake to do our part to promote good will and support stability among all peoples. If any one desires to estimate the esteem in which the veterans of America are held by their fellow citizens, it is but necessary to remember that the current budget calls for an expenditure of about $650,000.000 in their behalf. This is nearly the amount of the total cost of the National Government, exclusive of the post office, before we entered the last war. At the two previous sessions of Congress legislation affecting veterans' relief was enacted and the law liberalized. This legislation brought into being a number of new provisions tending more nearly to meet the needs of our veterans, as well as afford the necessary authority to perfect the administration of these laws. Experience with the new legislation so far has clearly demonstrated its constructive nature. It has increased the benefits received by many and bas made eligible for benefits many others. Direct disbursements to the veteran or his dependents exceeding $21,000,000 have resulted, which otherwise would not have been made. The degree of utilization of our hospitals has increased through making facilities available to the incapacitated veteran regardless of service origin of the disability. This new legislation also has brought about a marked improvement of service to the veteran. The organizations of ex-service men have proposed additional legislative changes which you will consider, but until the new law and the modifications made at the last session of Congress are given a more thorough test further changes in the basic law should be few and made only after careful though sympathetic consideration. The principal work now before the Veterans' Bureau is the perfection of its organization and further improvements in service. Some minor legislative changes are deemed necessary to enable the bureau to retain that high grade of professional talent essential in handling the problems of the bureau. Such changes as tend toward the improvement of service and the carrying forward to completion of the hospital construction program are recommended for the consideration of the proper committees of Congress. With the enormous outlay that is now being made in behalf of the veterans and their dependents, with a tremendous war debt still requiring great annual expenditure, with the still high rate of taxation, while. every provision should be made for the relief of the disabled and the necessary care of dependents, the Congress may well consider whether the financial condition of the Government is not such that further bounty through the enlargement of general pensions and other emoluments ought not to be postponed. No doubt the position of agriculture as a whole has very much improved since the depression of three and four years ago. But there are many localities and many groups of individuals, apparently through no fault of their own, sometimes due to climatic conditions and sometimes to the prevailing price of a certain crop, still in a distressing condition. This is probably temporary, but it is none the less acute. National Government agencies, the Departments of Agriculture and Commerce, the Farm Loan Board, the intermediate credit banks, and the Federal Reserve Board are all cooperating to be of assistance and relief. On the other hand, there are localities and individuals who have had one of their most prosperous years. The general price level is fair, but here again there are exceptions both ways, some items being poor while others are excellent. In spite of a lessened production the farm income for this year will be about the same as last year and much above the three preceding years. Agriculture is a very complex industry. It does not consist of one problem, but of several. They can not be solved at one stroke. They have to be met in different ways, and small gains are not to be despised. It has appeared from all the investigations that I have been able to make that the farmers as a whole are determined to maintain the independence of their business., They do not wish to have meddling on the part of the Government or to be placed under the inevitable restrictions involved in any system of direct or indirect price-fixing, which would result from permitting the Government to operate in the agricultural markets. They are showing a very commendable skill in organizing themselves to transact their own business through cooperative. marketing, which will this year turn over about $2,500,000,000, or nearly one-fifth of the total agricultural business. In this they are receiving help from the Government. The Department of Agriculture should be strengthened in this facility, in order to be able to respond when these marketing associations 'want help. While it ought not to undertake undue regulation, it should be equipped to give prompt information on crop prospects, supply, demand, current receipts, imports, exports, and prices. A bill embodying these principles, which has been drafted under the advice and with the approval of substantially all the leaders and managers in the cooperative movement, will be presented to the Congress for its enactment. Legislation should also be considered to provide for leasing the unappropriated public domain for grazing purposes and adopting a uniform policy relative to grazing on the public lands and in the national forests. A more intimate relation should be established between agriculture and the other business activities of the Nation. They are mutually dependent and can each advance their own prosperity most by advancing the prosperity of the other. Meantime the Government will continue those activities which have resulted in an unprecedented amount of legislation and the pouring out of great sums of money during the last five years. The work for good roads, better land and water transportation, increased support for agricultural education, extension of credit facilities through the Farm Loan Boards and the intermediate credit banks, the encouragement of orderly marketing and a repression of wasteful speculation, will all be continued. Following every other depression, after a short period the price of farm produce has taken and maintained the lead in the advance. This advance had reached a climax before the war. Everyone will recall the discussion that went on for four or five years prior to 1914 concerning the high cost of living. This history is apparently beginning to repeat itself. While wholesale prices of other commodities have been declining, farm prices have been increasing. There is every reason to suppose that a new era in agricultural prosperity lies just before us, which will probably be unprecedented. The problem of Muscle Shoals seems to me to have assumed a place all out of proportion with its real importance. It probably does not represent in market value much more than a first-class battleship, yet it has been discussed in the Congress over a period of years and for months at a time. It ought to be developed for the production of nitrates primarily, and incidentally for power purposes. This would serve defensive, agricultural, and industrial purposes. I am in favor of disposing of this property to meet these purposes. The findings of the special commission will be transmitted to the Congress for their information. I am convinced that the best possible disposition can be made by direct authorization of the Congress. As a means of negotiation I recommend the immediate appointment of a small joint special committee chosen from the appropriate general standing committees of the House and Senate to receive bids, which when made should be reported with recommendations as to acceptance, upon which a law should be enacted, effecting a sale to the highest bidder who will agree to carry out these purposes. If anything were needed to demonstrate the almost utter incapacity of the National Government to deal directly with an industrial and commercial problem, it has been provided by our experience with this property. We have expended vast fortunes, we have taxed everybody, but we are unable to secure results, which benefit anybody. This property ought, to be transferred to private management under conditions which will dedicate it to the public purpose for which it was conceived. The National Government is committed to a policy of reclamation and irrigation which it desires to establish on a sound basis and continue in the interest of the localities concerned. Exhaustive studies have recently been made of Federal reclamation, which have resulted in improving the projects and adjusting many difficulties. About one third of the projects is in good financial condition, another third can probably be made profitable, while the other third is under unfavorable conditions. The Congress has already provided for a survey which will soon be embodied in a report. That ought to suggest a method of relief which will make unnecessary further appeals to the Congress. Unless this can be done, Federal reclamation will be considerably retarded. With the greatly increased cost of construction and operation, it has become necessary to plan in advance, by community organization and selective agriculture, methods sufficient to repay these increasing outlays. The human and economic interests of the farmer citizens suggest that the States should be required to exert some effort and assume some responsibility, especially in the intimate, detailed, and difficult work of securing settlers and developing farms which directly profit them, but only indirectly and remotely can reimburse the 'Nation. It is believed that the Federal Government should continue to be the agency for planning and constructing the great undertakings needed to regulate and bring into use the rivers the West, many of which are interstate in character, but the detailed work of creating agricultural communities and a rural civilization on the land made ready for reclamation ought to be either transferred to the State 'in its entirety or made a cooperative effort of the State and Federal Government. The maintenance of a merchant marine is of the utmost importance for national defense and the service of our commerce. We have a large number of ships engaged in that service. We also have a surplus supply, costly to care for, which ought to be sold. All the investigations that have been made under my direction, and those which have been prosecuted independently, have reached the conclusion that the fleet should be under the direct control of a single executive head, while the Shipping Board should exercise its judicial and regulatory functions in Accordance with its original conception. The report of Henry G. Dalton, a business man of broad experience, with a knowledge of shipping, made to me after careful investigation, will be transmitted for the information of the Congress, the studies pursued under the direction of the United States Chamber of Commerce will also be accessible, and added to these will be the report of the special committee of the House. I do not advocate the elimination of regional considerations, but it has become apparent that without centralized executive action the management of this great business, like the management of any other great business, will flounder in incapacity and languish under a division of council. A plain and unmistakable reassertion of this principle of unified control, which I have always been advised was the intention of the Congress to apply, is necessary to increase the efficiency of our merchant fleet. The perennial conflict in the coal industry is still going on to the great detriment of the wage earners, the owners, and especially to the public. With deposits of coal in this country capable of supplying its needs for hundreds of years, inability to manage and control this great resource for the benefit of all concerned is very close to a national economic failure. It has been the subject of repeated investigation and reiterated recommendation. Yet the industry seems never to have accepted modern methods of adjusting differences between employers and employees. The industry could serve the public much better and become subject to a much more effective method of control if regional consolidations and more freedom in the formation of marketing associations, under the supervision of the Department of Commerce, were permitted. At the present time the National Government has little or no authority to deal with this vital necessity of the life of the country. It has permitted itself to remain so powerless that its only attitude must be humble supplication. Authority should be lodged with the President and the Departments of Commerce and Labor, giving them power to deal with an emergency. They should be able to appoint temporary boards with authority to call for witnesses and documents, conciliate differences, encourage arbitration, and in case of threatened scarcity exercise control over distribution. Making the facts public under these circumstances through a statement from an authoritative source would be of great public benefit. The report of the last coal commission should be brought forward, reconsidered, and acted upon. Under the orderly processes of our fundamental institutions the Constitution was lately amended providing for national prohibition. The Congress passed an act for its enforcement, and similar acts have been provided by most of the States. It is the law of the land. It is the duty of all who come under its, jurisdiction to observe the spirit of that law, and it is the duty of the Department of Justice and the Treasury Department to enforce it. Action to prevent smuggling, illegal transportation in interstate commerce, abuse in the use of permits, and existence of sources of supply for illegal traffic is almost entirely imposed upon the Federal Government. Through treaties with foreign governments and increased activities of the Coast Guard, revenue agents, district attorneys and enforcement agents effort is being made to prevent these violations. But the Constitution also puts a concurrent duty on the States. We need their active and energetic cooperation, the vigilant action of their police, and the jurisdiction of their courts to assist in enforcement. I request of the people observance, of the public officers continuing efforts for enforcement, and of the Congress favorable action on the budget recommendation for the prosecution of this work. For many years our country has been employed in plans and M for the development of our intracoastal and inland waterways. This work along our coast is an important adjunct to our commerce. It will be carried on, together with the further opening up of our harbors, as our resources permit. The Government made an agreement during the war to take over the Cape Cod Canal, under which the owners made valuable concessions. This pledged faith of the Government ought to be redeemed. Two other main fields are under consideration. One is the Great Lakes and St. Lawrence, including the Erie Canal. This includes stabilizing the lake level, and is both a waterway and power project. A joint commission of the United States and Canada is working on plans and surveys which will not be completed until next April. No final determination can be made, apparently, except under treaty as to the participation of both countries. The other is the Mississippi River stem. This is almost entirely devoted to navigation. Work on the Ohio River will be completed in about three years. A modern channel connecting Chicago, New Orleans, Kansas City, and Pittsburgh should be laid out and work on the tributaries prosecuted. Some work is being done of a preparatory nature along the Missouri, and large expenditures are being made yearly in the lower reaches of the Mississippi and its tributaries which contribute both to flood control and navigation. Preliminary measures are being" taken on tile Colorado River project, which is exceedingly important for flood control, irrigation, power development, and water supply to the area concerned. It would seem to be very doubtful, however, whether it is practical to secure affirmative action of the Congress, except under a Joint agreement of the several States. The Government has already expended large sums upon scientific research and engineering investigation in promotion of this Colorado River project. The actual progress has been retarded for many years by differences among the seven States in the basin over their relative water rights and among different groups as to methods. In an attempt to settle the primary difficulty of the water rights, Congress authorized the Colorado River Commission which agreed on November 24, 1922, upon an interstate compact to settle these rights, subject to the ratification of the State legislatures and Congress. All seven States except Arizona at one time ratified, the Arizona Legislature making certain reservations which failed to meet the approval of the governor. Subsequently an attempt was made to establish the compact upon a six-State basis, but in this case California imposed reservations. There appears to be no division of opinion upon the major principles of the compact, but difficulty in separating contentions to methods of development from the discussion of it. It is imperative that flood control be undertaken for California and Arizona. preparation made for irrigation, for power, and for domestic water. Some or all of these questions are combined in every proposed development. The Federal Government is interested in some of these phases, State governments and municipalities and irrigation districts in others, and private corporations in still others. Because of all this difference of view it is most desirable that Congress should consider the creation of some agency that will be able to determine methods of improvement solely upon economic and engineering facts, that would be authorized to negotiate and settle, subject to the approval of Congress, the participation, rights, and obligations of each group in any particular works. Only by some such method can early construction be secured. Along with the development of navigation should go every possible encouragement for the development of our water power. While steam. still plays a dominant part, this is more and more becoming an era of electricity. Once installed, the cost is moderate, has not tended greatly to increase, and is entirely free from the unavoidable dirt and disagreeable features attendant upon the burning of coal. Every facility should be extended for the connection of the various units into a superpower plant, capable at all times of a current increasing uniformity over the entire system. The railroads throughout the country are in a fair state of prosperity. Their service is good and their supply of cars is abundant. Their condition would be improved and the public better served by a system of consolidations. I recommend that the Congress authorize such consolidations tinder the supervision of the Interstate Commerce Commission, with power to approve or disapprove when proposed parts are excluded or new parts added. I am informed that the railroad managers and their employees have reached a substantial agreement as to what legislation is necessary to regulate and improve their relationship. Whenever they bring forward such proposals, which seem sufficient also to protect the interests of the public, they should be enacted into law. It is gratifying to report that both the railroad managers and railroad employees are providing boards for the mutual adjustment of differences in harmony with the principles of conference, conciliation, and arbitration. The solution of their problems ought to be an example to all other industries. Those who ask the protections of civilization should be ready to use the methods of civilization. A strike in modern industry has many of the aspects of war in the modern world. It injures labor and it injures capital. If the industry involved is a basic one, it reduces the necessary economic surplus and, increasing the cost of living, it injures the economic welfare and general comfort of the whole people. It also involves a deeper cost. It tends to embitter and divide the community into warring classes and thus weakens the unity and power of our national life. Labor can make no permanent gains at the cost of the general welfare. All the victories won by organized labor in the past generation have been won through the support of public opinion. The manifest inclination of the managers and employees of the railroads to adopt a policy of action in harmony with these principles marks a new epoch in our industrial life. The time has come for careful investigation of the expenditures and success of the laws by which we have undertaken to administer our outlying possessions. A very large amount of money is being expended for administration in Alaska. It appears so far out of proportion to the number of inhabitants and the amount of production as to indicate because for thorough investigation. Likewise consideration should be given to the experience under the law which governs the Philippines. From such reports as reach me there are indications that more authority should be given to the Governor General, so that he will not be so dependent upon the local legislative body to render effective our efforts to set an example of the sound administration and good government, which is so necessary for the preparation of the Philippine people for self-government under ultimate independence. If they are to be trained in these arts, it is our duty to provide for them the best that there is. The act of March 3, 1911, ought to be amended so that the term of years of service of judges of any court of the United States requisite for retirement with pay shall 6e computed to include not only continuous but aggregate service. The Government ought always to be alert on the side of the humanities. It Ought to encourage provisions for economic justice for the defenseless. It ought to extend its relief through its national and local agencies, as may be appropriate in each case, to the suffering and the needy. It ought to be charitable. Although more than 40 of our States have enacted measures in aid of motherhood, the District of Columbia is still without such a law. A carefully considered bill will be presented, which ought to have most thoughtful consideration in order that the Congress may adopt a measure which will be hereafter a model for all parts of the Union. In 1883 the Congress passed the civil service act, which from a modest beginning of 14,000 employees has grown until there are now 425,000 in the classified service. This has removed the clerical force of the Nation from the wasteful effects of the spoils system and made it more stable and efficient. The time has come to consider classifying all postmasters, collectors of customs, collectors of internal revenue, and prohibition agents, by an act covering in those at present in office, except when otherwise provided by Executive order. The necessary statistics are now being gathered to form the basis of a valuation of the civil service retirement fund based on current conditions of the service. It is confidently expected that this valuation will be completed in time to be made available to the Congress during the present session. It will afford definite knowledge of existing, and future liabilities under the present law and determination OF liabilities under any proposed change in the present law. We should have this information before creating further obligations for retirement annuities which will become liabilities to be met in the future from the money of the taxpayer. The classification act of 1923, with the subsequent legislative action providing for adjustment of the compensation of field service positions, has operated materially to improve employment conditions in the Federal service. The administration of the act is in the hands of an impartial board, functioning without the necessity of a direct appropriation. It would be inadvisable at this time to place in other hands the administration of this act. The proper function of the Federal Trade Commission is to supervise and correct those practices in commerce which are detrimental to fair competition. In this it performs a useful function and should be continued and supported. It was designed also to be a help to honest business. In my message to the Sixty-eighth Congress I recommended that changes in the procedure then existing be made. Since then the commission by its own action has reformed its rules, giving greater speed and economy in the disposal of its cases and full opportunity for those accused to be heard. These changes are improvements and, if necessary, provision should be made for their permanency. No final action has yet been taken on the measure providing for the reorganization of the various departments. I therefore suggest that this measure, which will be of great benefit to the efficient and economical administration of the business of the Government, be brought forward and passed. Nearly one-tenth of our population consists of the Negro race. The progress which they have made in all the arts of civilization in the last 60 years is almost beyond belief. Our country has no more loyal citizens. But they do still need sympathy, kindness, and helpfulness. They need reassurance that the requirements of the Government and society to deal out to them even-handed justice will be met. They should be protected from all violence and supported in the peaceable enjoyment of the fruits of their labor. Those who do violence to them should be punished for their crimes. No other course of action is worthy of the American people. Our country has many elements in its population, many different modes of thinking and living, all of which are striving in their own way to be loyal to the high ideals worthy of the crown of American citizenship. It is fundamental of our institutions that they seek to guarantee to all our inhabitants the right to live their own lives under the protection of the public law. This does not include any license to injure others materially, physically, morally, to Incite revolution, or to violate the established customs which have long bad the sanction of enlightened society. But it does mean the full right to liberty and equality before the law without distinction of race or creed. This condition can not be granted to others, or enjoyed by ourselves, except by the application of the principle of broadest tolerance. Bigotry is only another name for slavery. It reduces to serfdom not only those against whom it is directed, but also those who seek to apply it. An enlarged freedom can only be secured by the application of the golden rule. No other utterance ever presented such a practical rule of life. It is apparent that we are reaching into an era of great general prosperity. It will continue only so long as we shall use it properly. After all, there is but a fixed quantity of wealth in this country at any fixed time. The only way that we can all secure more of it is to create more. The element of time enters into production, If the people have sufficient moderation and contentment to be willing to improve their condition by the process of enlarging production, eliminating waste, and distributing equitably, a prosperity almost without limit lies before its. If the people are to be dominated by selfishness, seeking immediate riches by nonproductive speculation and by wasteful quarreling over the returns from industry, they will be confronted by the inevitable results of depression and privation. If they will continue industrious and thrifty, contented with fair wages and moderate profits, and the returns which accrue from tile development of oar natural resources, our prosperity will extend itself indefinitely. In all your deliberations you should remember that the purpose of legislation is to translate principles into action. It is an effort to have our country be better by doing better. Because the thoughts and ways of people are firmly fixed and not easily changed, the field within which immediate improvement can be secured is very narrow. Legislation can provide opportunity. Whether it is taken advantage of or not depends upon the people themselves. The Government of the United States has been created by the people. It is solely responsible to them. It will be most successful if it is conducted solely for their benefit. All its efforts would be of little avail unless they brought more justice, more enlightenment, more happiness and prosperity into the home. This means an opportunity to observe religion, secure education, and earn a living under a reign of law and order. It is the growth and improvement of the material and spiritual life of the Nation. We shall not be able to gain these ends merely by our own action. If they come at all, it will be because we have been willing to work in harmony with the abiding purpose of a Divine Providence.
in meeting the constitutional requirement of informing the congress upon the state of the union it is exceedingly gratifying to report that the general condition is one of progress and prosperity here and there are comparatively small and apparently temporary difficulties needing adjustment and improved administrative methods such as are always to be expected but in the fundamentals of government and business the results demonstrate that we are going in the right direction the country does not appear to require radical departures from the policies already adopted so much as it needs a further extension of these policies and the improvement of details the age of perfection is still in the somewhat distant future but it is more in danger of being retarded by mistaken government activity than it is from lack of legislation we are by far the most likely to accomplish permanent good if we proceed with moderation in our country the people are sovereign and independent and must accept the resulting responsibilities it is their duty to support themselves and support the government that is the business of the nation whatever the charity of the nation may require the functions which the congress are to discharge are not those of local government but of national government the greatest solicitude should be exercised to prevent any encroachment upon the rights of the states or their various political subdivisions local is one of our most precious possessions it is the greatest contributing factor to the stability strength liberty and progress of the nation it ought not to be in ringed by assault or undermined by purchase it ought not to abdicate its power through weakness or resign its authority through favor it does not at all follow that because abuses exist it is the concern of the federal government to attempt their reform society is in much more danger from encumbering the national government beyond its wisdom to comprehend or its ability to administer than from leaving the local communities to bear their own burdens and remedy their own evils our local habit and custom is so strong our variety of race and creed is so great the federal authority is so tenuous that the area within which it can function successfully is very limited the wiser policy is to leave the localities so far as we can possessed of their own sources of revenue and charged with their own obligations it is a fundamental principle of our country that the people are sovereign while they recognize the undeniable authority of the state they have established as its instrument a government of limited powers they hold inviolate in their own hands the jurisdiction over their own freedom and the ownership of their own property neither of these can be impaired except by due process of law the wealth of our country is not public wealth but private wealth it does not belong to the government it belongs to the people the government has no justification in taking private property except for a public purpose it is always necessary to keep these principles in mind in the laying of taxes and in the making of appropriations no right exists to levy on a dollar or to order the expenditure of a dollar of the money of the people except for a necessary public purpose duly authorized by the constitution the power over the purse is the power over liberty that is the legal limitation within which the congress can act how it will proceed within this limitation is always a question of policy when the country is prosperous and free from debt when the rate of taxation is low opportunity exists for assuming new burdens and undertaking new enterprises such a condition now prevails only to a limited extent all proposals for assuming new obligations ought to be postponed unless they are reproductive capital investments or are such as are absolutely necessary at this time we still have an enormous debt of over on which the interest and requirements are our appropriations for the pension office and the veterans bureau are the war and navy departments call for other requirements exclusive of the post office which is virtually brought the appropriations for the current year up to almost this shows an expenditure of close to 30 for every inhabitant of our country for the average family of five it means a tax directly or indirectly paid of about 150 for national purposes alone the local tax adds much more these enormous expenditures ought not to be increased but through every possible effort they ought to be reduced only one of these great items can be ultimately extinguished that is the item of our war debt already this has been reduced to about which means an annual saving in interest of close to the present interest charge is about yearly it would seem to be obvious that the sooner this debt can be retired the more the taxpayers will save in interest and the easier it will be to secure funds with which to prosecute needed running expenses constructions and improvements this item of for interest is a heavy charge on all the people of the country and it seems to me that we might well consider whether it is not greatly worth while to dispense with it as early as possible by retiring the principal debt which it is required to serve it has always been our policy to retire our debts that of the revolutionary war period notwithstanding the additions made in 1812 was paid by and the civil war debt within 23 years of the amount already paid over is a reduction in cash balances that source is exhausted over one and billions of dollars was derived from excess receipts tax reduction eliminates that the sale of surplus war materials has been another element of our income that is practically finished with these eliminated the reduction of the debt has been only about each year not an excessive sum on so large a debt proposals have been made to extend the payment over a period of 62 years if is paid at the end of 20 years the cost to the taxpayers is the principal and i f the interest is 4 per cent a total of if the same sum is paid at the end of 62 years the cost is or almost double here is another consideration compared with its purchasing power in 1913 the dollar we borrowed represented but 52 cents as the value of our dollar increases due to the falling prices of commodities the burden of our debt increases it has now risen to cents the taxpayer will be required to produce nearly twice the amount of commodities to pay his debt if the dollar returns to the 1913 value the more we pay while prices are high the easier it will be deflation of government after a war period is slower than deflation of business where curtailment is either prompt and effective or disaster follows there is room for further economy in the cost of the federal government but a co n of current expenditures with expenditures is not able to the efficiency with which government business is now being done the expenditures of 19161 the last year were and in 1925 over or nearly five times as great if we subtract expenditures for debt retirements and interest veterans relief increase of pensions and other special outlays consisting of refunds trust investments and like charges we find that the general expenditures of the government in 1925 were slightly more than twice as large as in 1916 as prices in 1925 were approximately 40 per cent higher than in 1916 the cost of the same government must also have increased but the government is not same it is more expensive to collect the much greater revenue necessary and to administer our great debt we have given enlarged and improved services to agriculture and commerce above all america has grown in population and wealth government expenditures must always share in this growth taking into account the factors i have mentioned i believe that present federal expenses are not far out of line with expenses we have nearly accomplished the deflation this does not mean that further economies will not come as we reduce our debt our interest charges decline there are many details yet to correct the real improvement however must come not from additional curtailment of expenses but by a more intelligent more ordered spending our economy must be constructive while we should avoid as far as possible increases in permanent current expenditures oftentimes a capital outlay like internal improvements will result in actual constructive saving that is economy in its best sense it is an avoidance of waste that there may be the means for an outlay which will bring larger returns we should constantly engage in scientific studies of our future requirements and adopt an orderly program for their service economy is the method by which we prepare to afford the improvements of a mere policy of economy without any instrumentalities for putting it into operation would be very ineffective the congress has wisely set up the bureau of the budget to investigate and inform the president what recommendations he ought to make for current appropriations this gives a centralized authority where a general and comprehensive understanding can be reached of the sources of income and the most equitable distribution of expenditures how well it has worked is indicated by the fact that the departmental estimates for 1922 before the budget law were while the budget estimates for 1927 are this latter figure shows the reductions in departmental estimates for the coming year made possible by the operation of the budget system that the congress has provided but it is evidently not enough to have care in making appropriations without any restraint upon expenditure the congress has provided that check by establishing the office of comptroller general the purpose of maintaining the budget director and the comptroller general is to secure economy and efficiency in government expenditure no better method has been devised for the accomplishment of that end these offices can not be administered in all the various details without making some errors both of fact and of judgment but the important consideration remains that these are the instrumentalities of the congress and that no other plan has ever been adopted which was so successful in promoting economy and efficiency the congress has absolute authority over the appropriations and is free to exercise its judgment as the evidence may warrant in increasing or decreasing budget recommendations but it ought to resist every effort to weaken or break down this most beneficial system of supervising appropriations and expenditures without it all the claim of economy would be a mere pretense the purpose of reducing expenditures is to secure a reduction in taxes that purpose is about to be realized with commendable promptness the ways and means committee of the house has undertaken in advance of the meeting of the congress to frame a revenue act as the bill has proceeded through the committee it has taken on a nonpartisan character and both republicans and democrats have joined in a measure which embodies many sound principles of tax reform the bill will correct substantially the economic defects injected into the revenue act of 1924 as well as many which have remained as legacies in its present form it should provide sufficient revenue for the government the excessive surtaxes have been reduced estate tax rates arv restored to more reasonable figures with every prospect of withdrawing from the field when the states have had the opportunity to correct the abuses in their own inheritance tax laws the gift tax and publicity section are to be repealed many miscellaneous taxes are lowered or abandoned and the board of tax appeals and the administrative features of the law are improved and strengthened i approve of the bill in principle in so far as exemptions are concerned it seems to me the committee has gone as far as it is safe to go and somewhat further than i should have gone any further extension along these lines would in my opinion impair tile integrity of our system i am advised that the bill will be through the house by christmas for this prompt action the country call thank the good sense of the ways and means committee in framing an economic measure upon economic considerations if this attitude continues to be reflected through the congress the taxpayer will have his relief by the time his march 15th installment of income taxes is due nonpartisan effort means certain quick action determination of a revenue law definitely promptly and solely as a revenue law is one of the greatest gifts a legislature can bestow upon its constituents i commend the example of file ways and means committee if followed it will place sound legislation upon the books in time to give the taxpayers the full benefit of tax reduction next year this means that the bill should reach me prior to march 15 all these economic results are being sought not to benefit the rich but to benefit the people they are for the purpose of encouraging industry in order that employment may be plentiful they seek to make business good in order that wages may be good they encourage prosperity in order that poverty may be banished from the home they seek to lay the foundation which through increased production may give the people a more bountiful supply of the necessaries of life afford more leisure for the improvement of the mind the appreciation of the arts of music and literature sculpture and painting and the beneficial enjoyment of outdoor sports and recreation enlarge the resources which minister to charity and by all these means attempting to strengthen the spiritual life of the nation the policy of our foreign relations casting aside any suggestion of force rests solely on the foundation of peace good will and good works we have sought in our intercourse with other nations better understandings through conference and exchange of views its befits beings endowed with reason the results have been the gradual elimination of disputes the settlement of controversies and the establishment of a firmer friendship between america and the rest of the world that has ever existed tit any previous time the example of this attitude has not been without its influence upon other countries acting upon it an adjustment was made of the difficult problem of reparations this was the second step toward peace in europe it paved the way for the agreements which were drawn tip at the locarno conference when ratified these will represent the third step toward peace while they do not of themselves provide an economic rehabilitation which is necessary for the progress of europe by strengthening the guarantees of peace they diminish the need for great armaments if the energy which now goes into military effort is transferred to productive endeavor it will greatly assist economic progress the locarno agreements were made by the european countries directly interested without any formal intervention of america although on july 3 1 publicly advocated such agreements in an address made in massachusetts we have consistently refrained from intervening except when our help has been sought and we have felt it could be effectively given as in the settlement of reparations and the london conference these recent locarno agreements represent the success of this policy which we have been insisting ought to be adopted of having european countries settle their own political problems without involving this country this beginning seems to demonstrate that this policy is sound it is exceedingly gratifying to observe this progress both in its method and in its result promises so much that is beneficial to the world when these agreements are finally adopted they will provide guarantees of peace that make the present prime reliance upon force in some parts of europe very much less necessary the natural corollary to these treaties should be further international contracts for the limitation of armaments this work was successfully begun at the washington conference nothing was done at that time concerning land forces because of european objection our standing army has been reduced to around about the necessary police force for people we are not proposing to increase it nor is it supposable that any foreign country looks with the slightest misapprehension upon our land forces they do not menace anybody they are rather a protection to everybody the question of disarming upon land is so peculiarly european in its practical aspects that our country would look with particular gratitude upon any action which those countries might take to reduce their own military forces this is in accordance with our policy of not intervening unless the european powers are unable to agree and make request for our assistance whenever they are able to agree of their own accord it is especially gratifying to its and such agreements may be sure of our sympathetic support it seems clear that it is the reduction of armies rather than of navies that is of the first importance to the world at the present time we shall look with great satisfaction upon that effort and give it our approbation and encouragement if that can be settled we may more easily consider further reduction and limitation of naval armaments for that purpose our country has constantly through its executive and through repeated acts of congress indicated its willingness to call such a conference under congressional sanction it would seem to be wise to participate in any conference of the great powers for naval limitation of armament proposed upon such conditions that it would hold a fair promise of being effective the general policy of our country is for disarmament and it ought not to hesitate to adopt any practical plan that might reasonably be expected to succeed but it would not care to attend a conference which from its location or constituency would in all probability prove futile in the further pursuit of strengthening the bonds of peace and good will we have joined with other nations in an international conference held at geneva and signed an agreement which will be laid before the senate for ratification providing suitable measures for control and for publicity in international trade in arms ammunition and implements of war and also executed a protocol providing for a prohibition of the use of poison gas in war in accordance with the principles of article 5 of the treaty relating thereto signed at tile washington conference we are supporting the pan american efforts that are being made toward the codification of international law and looking with sympathy oil the investigations conducted under philanthropic auspices of the proposal to agreements outlawing war in accordance with promises made at the washington conference we have urged the calling of and are now represented at the chinese customs conference and on the commission on extraterritoriality where it will be our policy so far as possible to meet the aspirations of china in all ways consistent with the interests of the countries involved pending before the senate for nearly three years is the proposal to adhere to the protocol establishing the permanent court of international justice a line of precedents mark america effort to effect the establishment of it court of this nature we took a leading part in laying the foundation on which it rests in the establishment of the hague court of arbitration it is that tribunal which nominates the judges who are elected by tile council and assembly of the league of nations the proposal submitted to the senate was made dependent upon four conditions the first of which is that by supporting the court we do not assume any obligations under the league second that we may participate upon an equality with other states in the election of judges third that the congress shall determine what part of the expenses we shall bear fourth that the statute creating tile court shall not be amended without out consent and to these i have proposed an additional condition to the effect that we are not to be bound by advisory opinions rendered without our consent the court appears to be independent of the league it is true tile judges are elected by tile assembly and council but they are nominated by the court of arbitration which we assisted to create and of which we are a part the court was created by it statute which is really a treaty made among some different countries that might properly be called a constitution of the court this statute provides a method by which the judges are chosen so that when the court of arbitration nominates them and the assembly and council of the league elect them they are not acting as instruments of the court of arbitration or instruments of the league but as instruments of the statute this will be even more apparent if our representatives sit with the members of the council and assembly in electing the judges it is true they are paid through the league though not by the league but by the countries which are members of the league and by our country if we accept the protocol the judges are paid by the league only in the same sense that it could be said united states judges are paid by the congress the court derives all its authority from the statute and is so completely independent of the league that it could go on functioning if the league were disbanded at least until the terms of the judges expired the most careful provisions are made in the statute as to the qualifications of judges those who make the nominations are recommended to consult with their highest court of justice their law schools and academies the judges must be persons of high moral character qualified to hold the highest judicial offices in that country or be jurisconsults of recognized competence in international law it must be assumed that these requirements will continue to be carefully met and with america joining the countries already concerned it is difficult to comprehend how human ingenuity could better provide for the establishment of a court which would maintain its independence it has to be recognized that independence is to a considerable extent a matter of ability character and personality some effort was made in the early beginnings to interfere with the independence of our supreme court it did not succeed because of the quality of the men who made up that tribunal it does not seem that the authority to give advisory opinions interferes with the independence of the court advisory opinions in and of themselves are not harmful but may be used in such a way as to be very beneficial because they undertake to prevent injury rather than merely afford a remedy after the injury has been done as a principle that only implies that the court shall function when proper application is made to it deciding the question involved upon issues submitted for an advisory opinion does not differ materially from deciding the question involved upon issues submitted by contending parties up to the present time the court has given an advisory opinion when it judged it had jurisdiction and refused to give one when it judged it did not have jurisdiction nothing in the work of the court has yet been an indication that this is an impairment of its independence or that its practice differs materially from the giving of like opinions under the authority of the constitutions of several of our states no provision of the statute seems to me to give this court any authority to be a political rather than a judicial court we have brought cases in this country before our courts which when they have been adjudged to be political have been thereby dismissed it is not improbable that political questions will be submitted to this court but again up to the present time the court has refused to pass on political questions and our support would undoubtedly have a tendency to strengthen it in that refusal we are not proposing to subject ourselves to any compulsory jurisdiction if we support the court we can never be obliged to submit any case which involves our interests for its decision our appearance before it would always be voluntary for the purpose of presenting a case which we had agreed might be presented there is no more danger that others might bring cases before the court involving our interests which we did not wish to have brought after we have adhered and probably not so much than there would be of bringing such cases if we do not adhere i think that we would have the same legal or moral right to disregard such a finding in the one case that we would in the other if we are going to support any court it will not be one that we have set tip alone or which reflects only our ideals other nations have their customs and their institutions their thoughts and their methods of life if a court is going to be international its composition will have to yield to what is good in all these various elements neither will it be possible to support a court which is exactly perfect or under which we assume absolutely no obligations if we are seeking that opportunity we might as well declare that we are opposed to supporting any court if any agreement is made it will be because it undertakes to set up a tribunal which can do some of the things that other nations wish to have done we shall not find ourselves bearing a disproportionate share of the world burdens by our adherence and we may as well remember that there is absolutely no escape for our country from bearing its share of the world burdens in any case we shall do far better service to ourselves and to others if we admit this and discharge our duties voluntarily than if we deny it and are forced to meet the same obligations unwillingly it is difficult to imagine anything that would be more helpful to the world than stability tranquility and international justice we may say that we are contributing to these factors independently but others less fortunately located do not and can not make a like contribution except through mutual cooperation the old balance of power mutual alliances and great military forces were not brought bout by any mutual dislike for independence but resulted from the domination of circumstances ultimately they were forced on us like all others engaged in the war whatever we said as a matter of fact we joined an alliance we became a military power we impaired our independence we have more at stake than any one else in avoiding a repetition of that calamity wars do not spring into existence they arise from small incidents and trifling irritations which can be adjusted by an international court we can contribute greatly to the advancement of our ideals by joining with other nations in maintaining such a tribunal gradually settlements have been made which provide for the liquidation of debts due to our government from foreign governments those made with great britain finland hungary lithuania and poland have already been approved by the congress since the adjournment further agreements have been entered into with belgium czechoslovakia latvia estonia italy and rumania these 11 nations which have already made settlements represent of the original principal of the loans the principal sums without interest still pending are the debt of france of greece yugoslavia liberia russia which those at present in control have undertaken openly to repudiate nicaragua which is being paid currently and austria on which by act of congress a moratorium of 20 years has been granted the only remaining sum is due from armenia which has now ceased to exist as an independent nation in accordance with the settlements made the amount of principal and interest which is to be paid to the united states under these agreements aggregate it is obvious that the remaining settlements which will undoubtedly be made will bring this sum up to an amount which will more than equal the principal due on our present national debt while these settlements are very large in the aggregate it has been felt that the terms granted were in all cases very generous they impose no undue burden and are mutually beneficial in the observance of international faith and the improvement of international credit every reasonable effort will be made to secure agreements for liquidation with the remaining countries whenever they are in such condition that they can be made those which have already been negotiated under the bipartisan commission established by the congress have been made only after the most thoroughgoing and painstaking investigation continued for a long time before meeting with the representatives of the countries concerned it is believed that they represent in each instance the best that can be done and the wisest settlement that can be secured one very important result is the stabilization of foreign currency making exchange assist rather than embarrass our trade wherever sacrifices have been made of money it will be more than amply returned in better understanding and friendship while in so far as these adjustments will contribute to the financial stability of the debtor countries to their good order prosperity and progress they represent hope of improved trade relations and mutual contributions to the civilization of the world negotiations are progressing among the interested parties in relation to the final distribution of the assets in the hands of the alien property custodian our government and people are interested as creditors the german government and people are interested as debtors and owners of the seized property pending the outcome of these negotiations i do not recommend any affirmative legislation for the present we should continue in possession of this property which we hold as security for the settlement of claims due to our people and our government while not enough time has elapsed to afford a conclusive demonstration such results as have been secured indicate that our immigration law is on the whole beneficial it is undoubtedly a protection to the wage earners of this country the situation should however be carefully surveyed in order to ascertain whether it is working a needless hardship upon our own inhabitants if it deprives them of the comfort and society of those bound to them by close family ties such modifications should be adopted as will afford relief always in accordance with the principle that our government owes its first duty to our own people and that no alien inhabitant of another country has any legal rights whatever under our constitution and laws it is only through treaty or through residence here that such rights accrue but we should not however be forgetful of the obligations of a common humanity while our country numbers among its best citizens many of those of foreign birth yet those who now enter in violation of our laws bi that very act thereby place themselves in a class of undesirables if investigation reveals that any considerable number are coming here in defiance of our immigration restrictions it will undoubtedly create the necessity for the registration of all aliens we ought to have no prejudice against an alien because lie is an alien the standard which we apply to our inhabitants is that of manhood not place of birth restrictive immigration is to a large degree for economic purposes it is applied in order that we may not have a larger annual increment of good people within our borders than we can weave into our economic fabric in such a way as to supply their needs without undue injury to ourselves never before in time of peace has our country maintained so large and effective a military force as it now has the army navy marine corps national guard and organized reserves represent a strength of about men these forces are well trained well equipped and high in morale a sound selective service act giving broad authority for the mobilization in time of peril of all the resources of the country both persons and materials is needed to perfect our defense policy in accordance with our ideals of equality the provision for more suitable housing to be paid for out of funds derived from the sale of excess lands pending before the last congress ought to be brought forward and passed reasonable replacements ought to be made to maintain a sufficient ammunition reserve the navy has the full treaty tonnage of capital ships work is going forward in modernizing the older ones building aircraft carriers additional fleet submarines and fast scout cruisers but we are carefully avoiding anything that might be construed as a competition in armaments with other nations the joint army and navy maneuvers at hawaii followed by the cruise of a full battle fleet to australia and new zealand were successfully carried out these demonstrations revealed a most satisfactory condition of the ships and the men engaged last year at my suggestion the general board of the navy made an investigation and report on the relation of aircraft to warships as a result authorizations and appropriations were made for more scout cruisers and fleet submarines and for completing aircraft carriers and equipping them with necessary planes additional training in aviation was begun at the military and naval academies a method of coordination and cooperation of the army and navy and the principal aircraft builders is being perfected at the suggestion of the secretaries of war and navy i appointed a special board to make a further study of the problem of aircraft the report of the air board ought to be reassuring to the country gratifying to the service and satisfactory to the congress it is thoroughly complete and represents the mature thought of the best talent in the country no radical change in organization of the service seems necessary the departments of war navy and commerce should each be provided with an additional assistant secretary not necessarily with statutory duties but who would be available under the direction of the secretary to give especial attention to air navigation we must have an air strength worthy of america provision should be made for two additional brigadier generals for the army air service temporary rank corresponding to their duties should be awarded to active flying officers in both army and navy aviation is of great importance both for national defense and commercial development we ought to proceed in its improvement by the necessary experiment and investigation our country is not behind in this art it has made records for speed and for the excellence of its planes it ought to go on maintaining its manufacturing plants capable of rapid production giving national assistance to tile la in out of airways equipping itself with a moderate number of planes and keeping an air force trained to the highest efficiency while i am a thorough believer in national defense and entirely committed to the policy of adequate preparation i am just as thoroughly opposed to instigating or participating in a policy of competitive armaments nor does preparation mean a policy of militarizing our people and industries are solicitous for the because of 0111 country and have great respect for the army and navy and foil the uniform worn by the men who stand ready at all times for our protection to encounter the dangers and perils necessary to military service but all of these activities are to be taken not in behalf of aggression but in behalf of peace they are the instruments by which we undertake to do our part to promote good will and support stability among all peoples if any one desires to estimate the esteem in which the veterans of america are held by their fellow citizens it is but necessary to remember that the current budget calls for an expenditure of about in their behalf this is nearly the amount of the total cost of the national government exclusive of the post office before we entered the last war at the two previous sessions of congress legislation affecting veterans relief was enacted and the law liberalized this legislation brought into being a number of new provisions tending more nearly to meet the needs of our veterans as well as afford the necessary authority to perfect the administration of these laws experience with the new legislation so far has clearly demonstrated its constructive nature it has increased the benefits received by many and bas made eligible for benefits many others direct disbursements to the veteran or his dependents exceeding have resulted which otherwise would not have been made the degree of utilization of our hospitals has increased through making facilities available to the incapacitated veteran regardless of service origin of the disability this new legislation also has brought about a marked improvement of service to the veteran the organizations of men have proposed additional legislative changes which you will consider but until the new law and the modifications made at the last session of congress are given a more thorough test further changes in the basic law should be few and made only after careful though sympathetic consideration the principal work now before the veterans bureau is the perfection of its organization and further improvements in service some minor legislative changes are deemed necessary to enable the bureau to retain that high grade of professional talent essential in handling the problems of the bureau such changes as tend toward the improvement of service and the carrying forward to completion of the hospital construction program are recommended for the consideration of the proper committees of congress with the enormous outlay that is now being made in behalf of the veterans and their dependents with a tremendous war debt still requiring great annual expenditure with the still high rate of taxation while every provision should be made for the relief of the disabled and the necessary care of dependents the congress may well consider whether the financial condition of the government is not such that further bounty through the enlargement of general pensions and other emoluments ought not to be postponed no doubt the position of agriculture as a whole has very much improved since the depression of three and four years ago but there are many localities and many groups of individuals apparently through no fault of their own sometimes due to climatic conditions and sometimes to the prevailing price of a certain crop still in a distressing condition this is probably temporary but it is none the less acute national government agencies the departments of agriculture and commerce the farm loan board the intermediate credit banks and the federal reserve board are all cooperating to be of assistance and relief on the other hand there are localities and individuals who have had one of their most prosperous years the general price level is fair but here again there are exceptions both ways some items being poor while others are excellent in spite of a lessened production the farm income for this year will be about the same as last year and much above the three preceding years agriculture is a very complex industry it does not consist of one problem but of several they can not be solved at one stroke they have to be met in different ways and small gains are not to be despised it has appeared from all the investigations that i have been able to make that the farmers as a whole are determined to maintain the independence of their they do not wish to have meddling on the part of the government or to be placed under the inevitable restrictions involved in any system of direct or indirect which would result from permitting the government to operate in the agricultural markets they are showing a very commendable skill in organizing themselves to transact their own business through cooperative marketing which will this year turn over about or nearly of the total agricultural business in this they are receiving help from the government the department of agriculture should be strengthened in this facility in order to be able to respond when these marketing associations help while it ought not to undertake undue regulation it should be equipped to give prompt information on crop prospects supply demand current receipts imports exports and prices a bill embodying these principles which has been drafted under the advice and with the approval of substantially all the leaders and managers in the cooperative movement will be presented to the congress for its enactment legislation should also be considered to provide for leasing the unappropriated public domain for grazing purposes and adopting a uniform policy relative to grazing on the public lands and in the national forests a more intimate relation should be established between agriculture and the other business activities of the nation they are mutually dependent and can each advance their own prosperity most by advancing the prosperity of the other meantime the government will continue those activities which have resulted in an unprecedented amount of legislation and the pouring out of great sums of money during the last five years the work for good roads better land and water transportation increased support for agricultural education extension of credit facilities through the farm loan boards and the intermediate credit banks the encouragement of orderly marketing and a repression of wasteful speculation will all be continued following every other depression after a short period the price of farm produce has taken and maintained the lead in the advance this advance had reached a climax before the war everyone will recall the discussion that went on for four or five years prior to 1914 concerning the high cost of living this history is apparently beginning to repeat itself while wholesale prices of other commodities have been declining farm prices have been increasing there is every reason to suppose that a new era in agricultural prosperity lies just before us which will probably be unprecedented the problem of muscle shoals seems to me to have assumed a place all out of proportion with its real importance it probably does not represent in market value much more than a battleship yet it has been discussed in the congress over a period of years and for months at a time it ought to be developed for the production of nitrates primarily and incidentally for power purposes this would serve defensive agricultural and industrial purposes i am in favor of disposing of this property to meet these purposes the findings of the special commission will be transmitted to the congress for their information i am convinced that the best possible disposition can be made by direct authorization of the congress as a means of negotiation i recommend the immediate appointment of a small joint special committee chosen from the appropriate general standing committees of the house and senate to receive bids which when made should be reported with recommendations as to acceptance upon which a law should be enacted effecting a sale to the highest bidder who will agree to carry out these purposes if anything were needed to demonstrate the almost utter incapacity of the national government to deal directly with an industrial and commercial problem it has been provided by our experience with this property we have expended vast fortunes we have taxed everybody but we are unable to secure results which benefit anybody this property ought to be transferred to private management under conditions which will dedicate it to the public purpose for which it was conceived the national government is committed to a policy of reclamation and irrigation which it desires to establish on a sound basis and continue in the interest of the localities concerned exhaustive studies have recently been made of federal reclamation which have resulted in improving the projects and adjusting many difficulties about one third of the projects is in good financial condition another third can probably be made profitable while the other third is under unfavorable conditions the congress has already provided for a survey which will soon be embodied in a report that ought to suggest a method of relief which will make unnecessary further appeals to the congress unless this can be done federal reclamation will be considerably retarded with the greatly increased cost of construction and operation it has become necessary to plan in advance by community organization and selective agriculture methods sufficient to repay these increasing outlays the human and economic interests of the farmer citizens suggest that the states should be required to exert some effort and assume some responsibility especially in the intimate detailed and difficult work of securing settlers and developing farms which directly profit them but only indirectly and remotely can reimburse the it is believed that the federal government should continue to be the agency for planning and constructing the great undertakings needed to regulate and bring into use the rivers the west many of which are interstate in character but the detailed work of creating agricultural communities and a rural civilization on the land made ready for reclamation ought to be either transferred to the state its entirety or made a cooperative effort of the state and federal government the maintenance of a merchant marine is of the utmost importance for national defense and the service of our commerce we have a large number of ships engaged in that service we also have a surplus supply costly to care for which ought to be sold all the investigations that have been made under my direction and those which have been prosecuted independently have reached the conclusion that the fleet should be under the direct control of a single executive head while the shipping board should exercise its judicial and regulatory functions in accordance with its original conception the report of henry dalton a business man of broad experience with a knowledge of shipping made to me after careful investigation will be transmitted for the information of the congress the studies pursued under the direction of the united states chamber of commerce will also be accessible and added to these will be the report of the special committee of the house i do not advocate the elimination of regional considerations but it has become apparent that without centralized executive action the management of this great business like the management of any other great business will flounder in incapacity and languish under a division of council a plain and unmistakable reassertion of this principle of unified control which i have always been advised was the intention of the congress to apply is necessary to increase the efficiency of our merchant fleet the perennial conflict in the coal industry is still going on to the great detriment of the wage earners the owners and especially to the public with deposits of coal in this country capable of supplying its needs for hundreds of years inability to manage and control this great resource for the benefit of all concerned is very close to a national economic failure it has been the subject of repeated investigation and reiterated recommendation yet the industry seems never to have accepted modern methods of adjusting differences between employers and employees the industry could serve the public much better and become subject to a much more effective method of control if regional consolidations and more freedom in the formation of marketing associations under the supervision of the department of commerce were permitted at the present time the national government has little or no authority to deal with this vital necessity of the life of the country it has permitted itself to remain so powerless that its only attitude must be humble supplication authority should be lodged with the president and the departments of commerce and labor giving them power to deal with an emergency they should be able to appoint temporary boards with authority to call for witnesses and documents conciliate differences encourage arbitration and in case of threatened scarcity exercise control over distribution making the facts public under these circumstances through a statement from an authoritative source would be of great public benefit the report of the last coal commission should be brought forward reconsidered and acted upon under the orderly processes of our fundamental institutions the constitution was lately amended providing for national prohibition the congress passed an act for its enforcement and similar acts have been provided by most of the states it is the law of the land it is the duty of all who come under its jurisdiction to observe the spirit of that law and it is the duty of the department of justice and the treasury department to enforce it action to prevent smuggling illegal transportation in interstate commerce abuse in the use of permits and existence of sources of supply for illegal traffic is almost entirely imposed upon the federal government through treaties with foreign governments and increased activities of the coast guard revenue agents district attorneys and enforcement agents effort is being made to prevent these violations but the constitution also puts a concurrent duty on the states we need their active and energetic cooperation the vigilant action of their police and the jurisdiction of their courts to assist in enforcement i request of the people observance of the public officers continuing efforts for enforcement and of the congress favorable action on the budget recommendation for the prosecution of this work for many years our country has been employed in plans and m for the development of our intracoastal and inland waterways this work along our coast is an important adjunct to our commerce it will be carried on together with the further opening up of our harbors as our resources permit the government made an agreement during the war to take over the cape cod canal under which the owners made valuable concessions this pledged faith of the government ought to be redeemed two other main fields are under consideration one is the great lakes and lawrence including the erie canal this includes stabilizing the lake level and is both a waterway and power project a joint commission of the united states and canada is working on plans and surveys which will not be completed until next april no final determination can be made apparently except under treaty as to the participation of both countries the other is the mississippi river stem this is almost entirely devoted to navigation work on the ohio river will be completed in about three years a modern channel connecting chicago new orleans kansas city and pittsburgh should be laid out and work on the tributaries prosecuted some work is being done of a preparatory nature along the missouri and large expenditures are being made yearly in the lower reaches of the mississippi and its tributaries which contribute both to flood control and navigation preliminary measures are being taken on tile colorado river project which is exceedingly important for flood control irrigation power development and water supply to the area concerned it would seem to be very doubtful however whether it is practical to secure affirmative action of the congress except under a joint agreement of the several states the government has already expended large sums upon scientific research and engineering investigation in promotion of this colorado river project the actual progress has been retarded for many years by differences among the seven states in the basin over their relative water rights and among different groups as to methods in an attempt to settle the primary difficulty of the water rights congress authorized the colorado river commission which agreed on november 24 1922 upon an interstate compact to settle these rights subject to the ratification of the state legislatures and congress all seven states except arizona at one time ratified the arizona legislature making certain reservations which failed to meet the approval of the governor subsequently an attempt was made to establish the compact upon a basis but in this case california imposed reservations there appears to be no division of opinion upon the major principles of the compact but difficulty in separating contentions to methods of development from the discussion of it it is imperative that flood control be undertaken for california and arizona preparation made for irrigation for power and for domestic water some or all of these questions are combined in every proposed development the federal government is interested in some of these phases state governments and municipalities and irrigation districts in others and private corporations in still others because of all this difference of view it is most desirable that congress should consider the creation of some agency that will be able to determine methods of improvement solely upon economic and engineering facts that would be authorized to negotiate and settle subject to the approval of congress the participation rights and obligations of each group in any particular works only by some such method can early construction be secured along with the development of navigation should go every possible encouragement for the development of our water power while steam still plays a dominant part this is more and more becoming an era of electricity once installed the cost is moderate has not tended greatly to increase and is entirely free from the unavoidable dirt and disagreeable features attendant upon the burning of coal every facility should be extended for the connection of the various units into a superpower plant capable at all times of a current increasing uniformity over the entire system the railroads throughout the country are in a fair state of prosperity their service is good and their supply of cars is abundant their condition would be improved and the public better served by a system of consolidations i recommend that the congress authorize such consolidations tinder the supervision of the interstate commerce commission with power to approve or disapprove when proposed parts are excluded or new parts added i am informed that the railroad managers and their employees have reached a substantial agreement as to what legislation is necessary to regulate and improve their relationship whenever they bring forward such proposals which seem sufficient also to protect the interests of the public they should be enacted into law it is gratifying to report that both the railroad managers and railroad employees are providing boards for the mutual adjustment of differences in harmony with the principles of conference conciliation and arbitration the solution of their problems ought to be an example to all other industries those who ask the protections of civilization should be ready to use the methods of civilization a strike in modern industry has many of the aspects of war in the modern world it injures labor and it injures capital if the industry involved is a basic one it reduces the necessary economic surplus and increasing the cost of living it injures the economic welfare and general comfort of the whole people it also involves a deeper cost it tends to embitter and divide the community into warring classes and thus weakens the unity and power of our national life labor can make no permanent gains at the cost of the general welfare all the victories won by organized labor in the past generation have been won through the support of public opinion the manifest inclination of the managers and employees of the railroads to adopt a policy of action in harmony with these principles marks a new epoch in our industrial life the time has come for careful investigation of the expenditures and success of the laws by which we have undertaken to administer our outlying possessions a very large amount of money is being expended for administration in alaska it appears so far out of proportion to the number of inhabitants and the amount of production as to indicate because for thorough investigation likewise consideration should be given to the experience under the law which governs the philippines from such reports as reach me there are indications that more authority should be given to the governor general so that he will not be so dependent upon the local legislative body to render effective our efforts to set an example of the sound administration and good government which is so necessary for the preparation of the philippine people for under ultimate independence if they are to be trained in these arts it is our duty to provide for them the best that there is the act of march 3 1911 ought to be amended so that the term of years of service of judges of any court of the united states requisite for retirement with pay shall 6e computed to include not only continuous but aggregate service the government ought always to be alert on the side of the humanities it ought to encourage provisions for economic justice for the defenseless it ought to extend its relief through its national and local agencies as may be appropriate in each case to the suffering and the needy it ought to be charitable although more than 40 of our states have enacted measures in aid of motherhood the district of columbia is still without such a law a carefully considered bill will be presented which ought to have most thoughtful consideration in order that the congress may adopt a measure which will be hereafter a model for all parts of the union in 1883 the congress passed the civil service act which from a modest beginning of employees has grown until there are now in the classified service this has removed the clerical force of the nation from the wasteful effects of the spoils system and made it more stable and efficient the time has come to consider classifying all postmasters collectors of customs collectors of internal revenue and prohibition agents by an act covering in those at present in office except when otherwise provided by executive order the necessary statistics are now being gathered to form the basis of a valuation of the civil service retirement fund based on current conditions of the service it is confidently expected that this valuation will be completed in time to be made available to the congress during the present session it will afford definite knowledge of existing and future liabilities under the present law and determination of liabilities under any proposed change in the present law we should have this information before creating further obligations for retirement annuities which will become liabilities to be met in the future from the money of the taxpayer the classification act of 1923 with the subsequent legislative action providing for adjustment of the compensation of field service positions has operated materially to improve employment conditions in the federal service the administration of the act is in the hands of an impartial board functioning without the necessity of a direct appropriation it would be inadvisable at this time to place in other hands the administration of this act the proper function of the federal trade commission is to supervise and correct those practices in commerce which are detrimental to fair competition in this it performs a useful function and should be continued and supported it was designed also to be a help to honest business in my message to the congress i recommended that changes in the procedure then existing be made since then the commission by its own action has reformed its rules giving greater speed and economy in the disposal of its cases and full opportunity for those accused to be heard these changes are improvements and if necessary provision should be made for their permanency no final action has yet been taken on the measure providing for the reorganization of the various departments i therefore suggest that this measure which will be of great benefit to the efficient and economical administration of the business of the government be brought forward and passed nearly of our population consists of the negro race the progress which they have made in all the arts of civilization in the last 60 years is almost beyond belief our country has no more loyal citizens but they do still need sympathy kindness and helpfulness they need reassurance that the requirements of the government and society to deal out to them justice will be met they should be protected from all violence and supported in the peaceable enjoyment of the fruits of their labor those who do violence to them should be punished for their crimes no other course of action is worthy of the american people our country has many elements in its population many different modes of thinking and living all of which are striving in their own way to be loyal to the high ideals worthy of the crown of american citizenship it is fundamental of our institutions that they seek to guarantee to all our inhabitants the right to live their own lives under the protection of the public law this does not include any license to injure others materially physically morally to incite revolution or to violate the established customs which have long bad the sanction of enlightened society but it does mean the full right to liberty and equality before the law without distinction of race or creed this condition can not be granted to others or enjoyed by ourselves except by the application of the principle of broadest tolerance bigotry is only another name for slavery it reduces to serfdom not only those against whom it is directed but also those who seek to apply it an enlarged freedom can only be secured by the application of the golden rule no other utterance ever presented such a practical rule of life it is apparent that we are reaching into an era of great general prosperity it will continue only so long as we shall use it properly after all there is but a fixed quantity of wealth in this country at any fixed time the only way that we can all secure more of it is to create more the element of time enters into production if the people have sufficient moderation and contentment to be willing to improve their condition by the process of enlarging production eliminating waste and distributing equitably a prosperity almost without limit lies before its if the people are to be dominated by selfishness seeking immediate riches by nonproductive speculation and by wasteful quarreling over the returns from industry they will be confronted by the inevitable results of depression and privation if they will continue industrious and thrifty contented with fair wages and moderate profits and the returns which accrue from tile development of oar natural resources our prosperity will extend itself indefinitely in all your deliberations you should remember that the purpose of legislation is to translate principles into action it is an effort to have our country be better by doing better because the thoughts and ways of people are firmly fixed and not easily changed the field within which immediate improvement can be secured is very narrow legislation can provide opportunity whether it is taken advantage of or not depends upon the people themselves the government of the united states has been created by the people it is solely responsible to them it will be most successful if it is conducted solely for their benefit all its efforts would be of little avail unless they brought more justice more enlightenment more happiness and prosperity into the home this means an opportunity to observe religion secure education and earn a living under a reign of law and order it is the growth and improvement of the material and spiritual life of the nation we shall not be able to gain these ends merely by our own action if they come at all it will be because we have been willing to work in harmony with the abiding purpose of a divine providence
meeting constitutional requirement informing congress upon state union exceedingly gratifying report general condition one progress prosperity comparatively small apparently temporary difficulties needing adjustment improved administrative methods always expected fundamentals government business results demonstrate going right direction country appear require radical departures policies already adopted much needs extension policies improvement details age perfection still somewhat distant future danger retarded mistaken government activity lack legislation far likely accomplish permanent good proceed moderation country people sovereign independent must accept resulting responsibilities duty support support government business nation whatever charity nation may require functions congress discharge local government national government greatest solicitude exercised prevent encroachment upon rights states various political subdivisions local one precious possessions greatest contributing factor stability strength liberty progress nation ought ringed assault undermined purchase ought abdicate power weakness resign authority favor follow abuses exist concern federal government attempt reform society much danger encumbering national government beyond wisdom comprehend ability administer leaving local communities bear burdens remedy evils local habit custom strong variety race creed great federal authority tenuous area within function successfully limited wiser policy leave localities far possessed sources revenue charged obligations fundamental principle country people sovereign recognize undeniable authority state established instrument government limited powers hold inviolate hands jurisdiction freedom ownership property neither impaired except due process law wealth country public wealth private wealth belong government belongs people government justification taking private property except public purpose always necessary keep principles mind laying taxes making appropriations right exists levy dollar order expenditure dollar money people except necessary public purpose duly authorized constitution power purse power liberty legal limitation within congress act proceed within limitation always question policy country prosperous free debt rate taxation low opportunity exists assuming new burdens undertaking new enterprises condition prevails limited extent proposals assuming new obligations ought postponed unless reproductive capital investments absolutely necessary time still enormous debt interest requirements appropriations pension office veterans bureau war navy departments call requirements exclusive post office virtually brought appropriations current year almost shows expenditure close 30 every inhabitant country average family five means tax directly indirectly paid 150 national purposes alone local tax adds much enormous expenditures ought increased every possible effort ought reduced one great items ultimately extinguished item war debt already reduced means annual saving interest close present interest charge yearly would seem obvious sooner debt retired taxpayers save interest easier secure funds prosecute needed running expenses constructions improvements item interest heavy charge people country seems might well consider whether greatly worth dispense early possible retiring principal debt required serve always policy retire debts revolutionary war period notwithstanding additions made 1812 paid civil war debt within 23 years amount already paid reduction cash balances source exhausted one billions dollars derived excess receipts tax reduction eliminates sale surplus war materials another element income practically finished eliminated reduction debt year excessive sum large debt proposals made extend payment period 62 years paid end 20 years cost taxpayers principal f interest 4 per cent total sum paid end 62 years cost almost double another consideration compared purchasing power 1913 dollar borrowed represented 52 cents value dollar increases due falling prices commodities burden debt increases risen cents taxpayer required produce nearly twice amount commodities pay debt dollar returns 1913 value pay prices high easier deflation government war period slower deflation business curtailment either prompt effective disaster follows room economy cost federal government co n current expenditures expenditures able efficiency government business done expenditures 19161 last year 1925 nearly five times great subtract expenditures debt retirements interest veterans relief increase pensions special outlays consisting refunds trust investments like charges find general expenditures government 1925 slightly twice large 1916 prices 1925 approximately 40 per cent higher 1916 cost government must also increased government expensive collect much greater revenue necessary administer great debt given enlarged improved services agriculture commerce america grown population wealth government expenditures must always share growth taking account factors mentioned believe present federal expenses far line expenses nearly accomplished deflation mean economies come reduce debt interest charges decline many details yet correct real improvement however must come additional curtailment expenses intelligent ordered spending economy must constructive avoid far possible increases permanent current expenditures oftentimes capital outlay like internal improvements result actual constructive saving economy best sense avoidance waste may means outlay bring larger returns constantly engage scientific studies future requirements adopt orderly program service economy method prepare afford improvements mere policy economy without instrumentalities putting operation would ineffective congress wisely set bureau budget investigate inform president recommendations ought make current appropriations gives centralized authority general comprehensive understanding reached sources income equitable distribution expenditures well worked indicated fact departmental estimates 1922 budget law budget estimates 1927 latter figure shows reductions departmental estimates coming year made possible operation budget system congress provided evidently enough care making appropriations without restraint upon expenditure congress provided check establishing office comptroller general purpose maintaining budget director comptroller general secure economy efficiency government expenditure better method devised accomplishment end offices administered various details without making errors fact judgment important consideration remains instrumentalities congress plan ever adopted successful promoting economy efficiency congress absolute authority appropriations free exercise judgment evidence may warrant increasing decreasing budget recommendations ought resist every effort weaken break beneficial system supervising appropriations expenditures without claim economy would mere pretense purpose reducing expenditures secure reduction taxes purpose realized commendable promptness ways means committee house undertaken advance meeting congress frame revenue act bill proceeded committee taken nonpartisan character republicans democrats joined measure embodies many sound principles tax reform bill correct substantially economic defects injected revenue act 1924 well many remained legacies present form provide sufficient revenue government excessive surtaxes reduced estate tax rates arv restored reasonable figures every prospect withdrawing field states opportunity correct abuses inheritance tax laws gift tax publicity section repealed many miscellaneous taxes lowered abandoned board tax appeals administrative features law improved strengthened approve bill principle far exemptions concerned seems committee gone far safe go somewhat gone extension along lines would opinion impair tile integrity system advised bill house christmas prompt action country call thank good sense ways means committee framing economic measure upon economic considerations attitude continues reflected congress taxpayer relief time march 15th installment income taxes due nonpartisan effort means certain quick action determination revenue law definitely promptly solely revenue law one greatest gifts legislature bestow upon constituents commend example file ways means committee followed place sound legislation upon books time give taxpayers full benefit tax reduction next year means bill reach prior march 15 economic results sought benefit rich benefit people purpose encouraging industry order employment may plentiful seek make business good order wages may good encourage prosperity order poverty may banished home seek lay foundation increased production may give people bountiful supply necessaries life afford leisure improvement mind appreciation arts music literature sculpture painting beneficial enjoyment outdoor sports recreation enlarge resources minister charity means attempting strengthen spiritual life nation policy foreign relations casting aside suggestion force rests solely foundation peace good good works sought intercourse nations better understandings conference exchange views befits beings endowed reason results gradual elimination disputes settlement controversies establishment firmer friendship america rest world ever existed tit previous time example attitude without influence upon countries acting upon adjustment made difficult problem reparations second step toward peace europe paved way agreements drawn tip locarno conference ratified represent third step toward peace provide economic rehabilitation necessary progress europe strengthening guarantees peace diminish need great armaments energy goes military effort transferred productive endeavor greatly assist economic progress locarno agreements made european countries directly interested without formal intervention america although july 3 1 publicly advocated agreements address made massachusetts consistently refrained intervening except help sought felt could effectively given settlement reparations london conference recent locarno agreements represent success policy insisting ought adopted european countries settle political problems without involving country beginning seems demonstrate policy sound exceedingly gratifying observe progress method result promises much beneficial world agreements finally adopted provide guarantees peace make present prime reliance upon force parts europe much less necessary natural corollary treaties international contracts limitation armaments work successfully begun washington conference nothing done time concerning land forces european objection standing army reduced around necessary police force people proposing increase supposable foreign country looks slightest misapprehension upon land forces menace anybody rather protection everybody question disarming upon land peculiarly european practical aspects country would look particular gratitude upon action countries might take reduce military forces accordance policy intervening unless european powers unable agree make request assistance whenever able agree accord especially gratifying agreements may sure sympathetic support seems clear reduction armies rather navies first importance world present time shall look great satisfaction upon effort give approbation encouragement settled may easily consider reduction limitation naval armaments purpose country constantly executive repeated acts congress indicated willingness call conference congressional sanction would seem wise participate conference great powers naval limitation armament proposed upon conditions would hold fair promise effective general policy country disarmament ought hesitate adopt practical plan might reasonably expected succeed would care attend conference location constituency would probability prove futile pursuit strengthening bonds peace good joined nations international conference held geneva signed agreement laid senate ratification providing suitable measures control publicity international trade arms ammunition implements war also executed protocol providing prohibition use poison gas war accordance principles article 5 treaty relating thereto signed tile washington conference supporting pan american efforts made toward codification international law looking sympathy oil investigations conducted philanthropic auspices proposal agreements outlawing war accordance promises made washington conference urged calling represented chinese customs conference commission extraterritoriality policy far possible meet aspirations china ways consistent interests countries involved pending senate nearly three years proposal adhere protocol establishing permanent court international justice line precedents mark america effort effect establishment court nature took leading part laying foundation rests establishment hague court arbitration tribunal nominates judges elected tile council assembly league nations proposal submitted senate made dependent upon four conditions first supporting court assume obligations league second may participate upon equality states election judges third congress shall determine part expenses shall bear fourth statute creating tile court shall amended without consent proposed additional condition effect bound advisory opinions rendered without consent court appears independent league true tile judges elected tile assembly council nominated court arbitration assisted create part court created statute really treaty made among different countries might properly called constitution court statute provides method judges chosen court arbitration nominates assembly council league elect acting instruments court arbitration instruments league instruments statute even apparent representatives sit members council assembly electing judges true paid league though league countries members league country accept protocol judges paid league sense could said united states judges paid congress court derives authority statute completely independent league could go functioning league disbanded least terms judges expired careful provisions made statute qualifications judges make nominations recommended consult highest court justice law schools academies judges must persons high moral character qualified hold highest judicial offices country jurisconsults recognized competence international law must assumed requirements continue carefully met america joining countries already concerned difficult comprehend human ingenuity could better provide establishment court would maintain independence recognized independence considerable extent matter ability character personality effort made early beginnings interfere independence supreme court succeed quality men made tribunal seem authority give advisory opinions interferes independence court advisory opinions harmful may used way beneficial undertake prevent injury rather merely afford remedy injury done principle implies court shall function proper application made deciding question involved upon issues submitted advisory opinion differ materially deciding question involved upon issues submitted contending parties present time court given advisory opinion judged jurisdiction refused give one judged jurisdiction nothing work court yet indication impairment independence practice differs materially giving like opinions authority constitutions several states provision statute seems give court authority political rather judicial court brought cases country courts adjudged political thereby dismissed improbable political questions submitted court present time court refused pass political questions support would undoubtedly tendency strengthen refusal proposing subject compulsory jurisdiction support court never obliged submit case involves interests decision appearance would always voluntary purpose presenting case agreed might presented danger others might bring cases court involving interests wish brought adhered probably much would bringing cases adhere think would legal moral right disregard finding one case would going support court one set tip alone reflects ideals nations customs institutions thoughts methods life court going international composition yield good various elements neither possible support court exactly perfect assume absolutely obligations seeking opportunity might well declare opposed supporting court agreement made undertakes set tribunal things nations wish done shall find bearing disproportionate share world burdens adherence may well remember absolutely escape country bearing share world burdens case shall far better service others admit discharge duties voluntarily deny forced meet obligations unwillingly difficult imagine anything would helpful world stability tranquility international justice may say contributing factors independently others less fortunately located make like contribution except mutual cooperation old balance power mutual alliances great military forces brought bout mutual dislike independence resulted domination circumstances ultimately forced us like others engaged war whatever said matter fact joined alliance became military power impaired independence stake one else avoiding repetition calamity wars spring existence arise small incidents trifling irritations adjusted international court contribute greatly advancement ideals joining nations maintaining tribunal gradually settlements made provide liquidation debts due government foreign governments made great britain finland hungary lithuania poland already approved congress since adjournment agreements entered belgium czechoslovakia latvia estonia italy rumania 11 nations already made settlements represent original principal loans principal sums without interest still pending debt france greece yugoslavia liberia russia present control undertaken openly repudiate nicaragua paid currently austria act congress moratorium 20 years granted remaining sum due armenia ceased exist independent nation accordance settlements made amount principal interest paid united states agreements aggregate obvious remaining settlements undoubtedly made bring sum amount equal principal due present national debt settlements large aggregate felt terms granted cases generous impose undue burden mutually beneficial observance international faith improvement international credit every reasonable effort made secure agreements liquidation remaining countries whenever condition made already negotiated bipartisan commission established congress made thoroughgoing painstaking investigation continued long time meeting representatives countries concerned believed represent instance best done wisest settlement secured one important result stabilization foreign currency making exchange assist rather embarrass trade wherever sacrifices made money amply returned better understanding friendship far adjustments contribute financial stability debtor countries good order prosperity progress represent hope improved trade relations mutual contributions civilization world negotiations progressing among interested parties relation final distribution assets hands alien property custodian government people interested creditors german government people interested debtors owners seized property pending outcome negotiations recommend affirmative legislation present continue possession property hold security settlement claims due people government enough time elapsed afford conclusive demonstration results secured indicate immigration law whole beneficial undoubtedly protection wage earners country situation however carefully surveyed order ascertain whether working needless hardship upon inhabitants deprives comfort society bound close family ties modifications adopted afford relief always accordance principle government owes first duty people alien inhabitant another country legal rights whatever constitution laws treaty residence rights accrue however forgetful obligations common humanity country numbers among best citizens many foreign birth yet enter violation laws bi act thereby place class undesirables investigation reveals considerable number coming defiance immigration restrictions undoubtedly create necessity registration aliens ought prejudice alien lie alien standard apply inhabitants manhood place birth restrictive immigration large degree economic purposes applied order may larger annual increment good people within borders weave economic fabric way supply needs without undue injury never time peace country maintained large effective military force army navy marine corps national guard organized reserves represent strength men forces well trained well equipped high morale sound selective service act giving broad authority mobilization time peril resources country persons materials needed perfect defense policy accordance ideals equality provision suitable housing paid funds derived sale excess lands pending last congress ought brought forward passed reasonable replacements ought made maintain sufficient ammunition reserve navy full treaty tonnage capital ships work going forward modernizing older ones building aircraft carriers additional fleet submarines fast scout cruisers carefully avoiding anything might construed competition armaments nations joint army navy maneuvers hawaii followed cruise full battle fleet australia new zealand successfully carried demonstrations revealed satisfactory condition ships men engaged last year suggestion general board navy made investigation report relation aircraft warships result authorizations appropriations made scout cruisers fleet submarines completing aircraft carriers equipping necessary planes additional training aviation begun military naval academies method coordination cooperation army navy principal aircraft builders perfected suggestion secretaries war navy appointed special board make study problem aircraft report air board ought reassuring country gratifying service satisfactory congress thoroughly complete represents mature thought best talent country radical change organization service seems necessary departments war navy commerce provided additional assistant secretary necessarily statutory duties would available direction secretary give especial attention air navigation must air strength worthy america provision made two additional brigadier generals army air service temporary rank corresponding duties awarded active flying officers army navy aviation great importance national defense commercial development ought proceed improvement necessary experiment investigation country behind art made records speed excellence planes ought go maintaining manufacturing plants capable rapid production giving national assistance tile la airways equipping moderate number planes keeping air force trained highest efficiency thorough believer national defense entirely committed policy adequate preparation thoroughly opposed instigating participating policy competitive armaments preparation mean policy militarizing people industries solicitous 0111 country great respect army navy foil uniform worn men stand ready times protection encounter dangers perils necessary military service activities taken behalf aggression behalf peace instruments undertake part promote good support stability among peoples one desires estimate esteem veterans america held fellow citizens necessary remember current budget calls expenditure behalf nearly amount total cost national government exclusive post office entered last war two previous sessions congress legislation affecting veterans relief enacted law liberalized legislation brought number new provisions tending nearly meet needs veterans well afford necessary authority perfect administration laws experience new legislation far clearly demonstrated constructive nature increased benefits received many bas made eligible benefits many others direct disbursements veteran dependents exceeding resulted otherwise would made degree utilization hospitals increased making facilities available incapacitated veteran regardless service origin disability new legislation also brought marked improvement service veteran organizations men proposed additional legislative changes consider new law modifications made last session congress given thorough test changes basic law made careful though sympathetic consideration principal work veterans bureau perfection organization improvements service minor legislative changes deemed necessary enable bureau retain high grade professional talent essential handling problems bureau changes tend toward improvement service carrying forward completion hospital construction program recommended consideration proper committees congress enormous outlay made behalf veterans dependents tremendous war debt still requiring great annual expenditure still high rate taxation every provision made relief disabled necessary care dependents congress may well consider whether financial condition government bounty enlargement general pensions emoluments ought postponed doubt position agriculture whole much improved since depression three four years ago many localities many groups individuals apparently fault sometimes due climatic conditions sometimes prevailing price certain crop still distressing condition probably temporary none less acute national government agencies departments agriculture commerce farm loan board intermediate credit banks federal reserve board cooperating assistance relief hand localities individuals one prosperous years general price level fair exceptions ways items poor others excellent spite lessened production farm income year last year much three preceding years agriculture complex industry consist one problem several solved one stroke met different ways small gains despised appeared investigations able make farmers whole determined maintain independence wish meddling part government placed inevitable restrictions involved system direct indirect would result permitting government operate agricultural markets showing commendable skill organizing transact business cooperative marketing year turn nearly total agricultural business receiving help government department agriculture strengthened facility order able respond marketing associations help ought undertake undue regulation equipped give prompt information crop prospects supply demand current receipts imports exports prices bill embodying principles drafted advice approval substantially leaders managers cooperative movement presented congress enactment legislation also considered provide leasing unappropriated public domain grazing purposes adopting uniform policy relative grazing public lands national forests intimate relation established agriculture business activities nation mutually dependent advance prosperity advancing prosperity meantime government continue activities resulted unprecedented amount legislation pouring great sums money last five years work good roads better land water transportation increased support agricultural education extension credit facilities farm loan boards intermediate credit banks encouragement orderly marketing repression wasteful speculation continued following every depression short period price farm produce taken maintained lead advance advance reached climax war everyone recall discussion went four five years prior 1914 concerning high cost living history apparently beginning repeat wholesale prices commodities declining farm prices increasing every reason suppose new era agricultural prosperity lies us probably unprecedented problem muscle shoals seems assumed place proportion real importance probably represent market value much battleship yet discussed congress period years months time ought developed production nitrates primarily incidentally power purposes would serve defensive agricultural industrial purposes favor disposing property meet purposes findings special commission transmitted congress information convinced best possible disposition made direct authorization congress means negotiation recommend immediate appointment small joint special committee chosen appropriate general standing committees house senate receive bids made reported recommendations acceptance upon law enacted effecting sale highest bidder agree carry purposes anything needed demonstrate almost utter incapacity national government deal directly industrial commercial problem provided experience property expended vast fortunes taxed everybody unable secure results benefit anybody property ought transferred private management conditions dedicate public purpose conceived national government committed policy reclamation irrigation desires establish sound basis continue interest localities concerned exhaustive studies recently made federal reclamation resulted improving projects adjusting many difficulties one third projects good financial condition another third probably made profitable third unfavorable conditions congress already provided survey soon embodied report ought suggest method relief make unnecessary appeals congress unless done federal reclamation considerably retarded greatly increased cost construction operation become necessary plan advance community organization selective agriculture methods sufficient repay increasing outlays human economic interests farmer citizens suggest states required exert effort assume responsibility especially intimate detailed difficult work securing settlers developing farms directly profit indirectly remotely reimburse believed federal government continue agency planning constructing great undertakings needed regulate bring use rivers west many interstate character detailed work creating agricultural communities rural civilization land made ready reclamation ought either transferred state entirety made cooperative effort state federal government maintenance merchant marine utmost importance national defense service commerce large number ships engaged service also surplus supply costly care ought sold investigations made direction prosecuted independently reached conclusion fleet direct control single executive head shipping board exercise judicial regulatory functions accordance original conception report henry dalton business man broad experience knowledge shipping made careful investigation transmitted information congress studies pursued direction united states chamber commerce also accessible added report special committee house advocate elimination regional considerations become apparent without centralized executive action management great business like management great business flounder incapacity languish division council plain unmistakable reassertion principle unified control always advised intention congress apply necessary increase efficiency merchant fleet perennial conflict coal industry still going great detriment wage earners owners especially public deposits coal country capable supplying needs hundreds years inability manage control great resource benefit concerned close national economic failure subject repeated investigation reiterated recommendation yet industry seems never accepted modern methods adjusting differences employers employees industry could serve public much better become subject much effective method control regional consolidations freedom formation marketing associations supervision department commerce permitted present time national government little authority deal vital necessity life country permitted remain powerless attitude must humble supplication authority lodged president departments commerce labor giving power deal emergency able appoint temporary boards authority call witnesses documents conciliate differences encourage arbitration case threatened scarcity exercise control distribution making facts public circumstances statement authoritative source would great public benefit report last coal commission brought forward reconsidered acted upon orderly processes fundamental institutions constitution lately amended providing national prohibition congress passed act enforcement similar acts provided states law land duty come jurisdiction observe spirit law duty department justice treasury department enforce action prevent smuggling illegal transportation interstate commerce abuse use permits existence sources supply illegal traffic almost entirely imposed upon federal government treaties foreign governments increased activities coast guard revenue agents district attorneys enforcement agents effort made prevent violations constitution also puts concurrent duty states need active energetic cooperation vigilant action police jurisdiction courts assist enforcement request people observance public officers continuing efforts enforcement congress favorable action budget recommendation prosecution work many years country employed plans development intracoastal inland waterways work along coast important adjunct commerce carried together opening harbors resources permit government made agreement war take cape cod canal owners made valuable concessions pledged faith government ought redeemed two main fields consideration one great lakes lawrence including erie canal includes stabilizing lake level waterway power project joint commission united states canada working plans surveys completed next april final determination made apparently except treaty participation countries mississippi river stem almost entirely devoted navigation work ohio river completed three years modern channel connecting chicago new orleans kansas city pittsburgh laid work tributaries prosecuted work done preparatory nature along missouri large expenditures made yearly lower reaches mississippi tributaries contribute flood control navigation preliminary measures taken tile colorado river project exceedingly important flood control irrigation power development water supply area concerned would seem doubtful however whether practical secure affirmative action congress except joint agreement several states government already expended large sums upon scientific research engineering investigation promotion colorado river project actual progress retarded many years differences among seven states basin relative water rights among different groups methods attempt settle primary difficulty water rights congress authorized colorado river commission agreed november 24 1922 upon interstate compact settle rights subject ratification state legislatures congress seven states except arizona one time ratified arizona legislature making certain reservations failed meet approval governor subsequently attempt made establish compact upon basis case california imposed reservations appears division opinion upon major principles compact difficulty separating contentions methods development discussion imperative flood control undertaken california arizona preparation made irrigation power domestic water questions combined every proposed development federal government interested phases state governments municipalities irrigation districts others private corporations still others difference view desirable congress consider creation agency able determine methods improvement solely upon economic engineering facts would authorized negotiate settle subject approval congress participation rights obligations group particular works method early construction secured along development navigation go every possible encouragement development water power steam still plays dominant part becoming era electricity installed cost moderate tended greatly increase entirely free unavoidable dirt disagreeable features attendant upon burning coal every facility extended connection various units superpower plant capable times current increasing uniformity entire system railroads throughout country fair state prosperity service good supply cars abundant condition would improved public better served system consolidations recommend congress authorize consolidations tinder supervision interstate commerce commission power approve disapprove proposed parts excluded new parts added informed railroad managers employees reached substantial agreement legislation necessary regulate improve relationship whenever bring forward proposals seem sufficient also protect interests public enacted law gratifying report railroad managers railroad employees providing boards mutual adjustment differences harmony principles conference conciliation arbitration solution problems ought example industries ask protections civilization ready use methods civilization strike modern industry many aspects war modern world injures labor injures capital industry involved basic one reduces necessary economic surplus increasing cost living injures economic welfare general comfort whole people also involves deeper cost tends embitter divide community warring classes thus weakens unity power national life labor make permanent gains cost general welfare victories organized labor past generation support public opinion manifest inclination managers employees railroads adopt policy action harmony principles marks new epoch industrial life time come careful investigation expenditures success laws undertaken administer outlying possessions large amount money expended administration alaska appears far proportion number inhabitants amount production indicate thorough investigation likewise consideration given experience law governs philippines reports reach indications authority given governor general dependent upon local legislative body render effective efforts set example sound administration good government necessary preparation philippine people ultimate independence trained arts duty provide best act march 3 1911 ought amended term years service judges court united states requisite retirement pay shall 6e computed include continuous aggregate service government ought always alert side humanities ought encourage provisions economic justice defenseless ought extend relief national local agencies may appropriate case suffering needy ought charitable although 40 states enacted measures aid motherhood district columbia still without law carefully considered bill presented ought thoughtful consideration order congress may adopt measure hereafter model parts union 1883 congress passed civil service act modest beginning employees grown classified service removed clerical force nation wasteful effects spoils system made stable efficient time come consider classifying postmasters collectors customs collectors internal revenue prohibition agents act covering present office except otherwise provided executive order necessary statistics gathered form basis valuation civil service retirement fund based current conditions service confidently expected valuation completed time made available congress present session afford definite knowledge existing future liabilities present law determination liabilities proposed change present law information creating obligations retirement annuities become liabilities met future money taxpayer classification act 1923 subsequent legislative action providing adjustment compensation field service positions operated materially improve employment conditions federal service administration act hands impartial board functioning without necessity direct appropriation would inadvisable time place hands administration act proper function federal trade commission supervise correct practices commerce detrimental fair competition performs useful function continued supported designed also help honest business message congress recommended changes procedure existing made since commission action reformed rules giving greater speed economy disposal cases full opportunity accused heard changes improvements necessary provision made permanency final action yet taken measure providing reorganization various departments therefore suggest measure great benefit efficient economical administration business government brought forward passed nearly population consists negro race progress made arts civilization last 60 years almost beyond belief country loyal citizens still need sympathy kindness helpfulness need reassurance requirements government society deal justice met protected violence supported peaceable enjoyment fruits labor violence punished crimes course action worthy american people country many elements population many different modes thinking living striving way loyal high ideals worthy crown american citizenship fundamental institutions seek guarantee inhabitants right live lives protection public law include license injure others materially physically morally incite revolution violate established customs long bad sanction enlightened society mean full right liberty equality law without distinction race creed condition granted others enjoyed except application principle broadest tolerance bigotry another name slavery reduces serfdom directed also seek apply enlarged freedom secured application golden rule utterance ever presented practical rule life apparent reaching era great general prosperity continue long shall use properly fixed quantity wealth country fixed time way secure create element time enters production people sufficient moderation contentment willing improve condition process enlarging production eliminating waste distributing equitably prosperity almost without limit lies people dominated selfishness seeking immediate riches nonproductive speculation wasteful quarreling returns industry confronted inevitable results depression privation continue industrious thrifty contented fair wages moderate profits returns accrue tile development oar natural resources prosperity extend indefinitely deliberations remember purpose legislation translate principles action effort country better better thoughts ways people firmly fixed easily changed field within immediate improvement secured narrow legislation provide opportunity whether taken advantage depends upon people government united states created people solely responsible successful conducted solely benefit efforts would little avail unless brought justice enlightenment happiness prosperity home means opportunity observe religion secure education earn living reign law order growth improvement material spiritual life nation shall able gain ends merely action come willing work harmony abiding purpose divine providence
meet constitutional requirement inform congress upon state union exceedingly gratify report general condition one progress prosperity comparatively small apparently temporary difficulty need adjustment improve administrative method always expect fundamentals government business result demonstrate go right direction country appear require radical departure policy already adopt much need extension policy improvement detail age perfection still somewhat distant future danger retard mistaken government activity lack legislation far likely accomplish permanent good proceed moderation country people sovereign independent must accept result responsibility duty support support government business nation whatever charity nation may require function congress discharge local government national government great solicitude exercise prevent encroachment upon right state various political subdivision local one precious possession great contribute factor stability strength liberty progress nation ought ring assault undermined purchase ought abdicate power weakness resign authority favor follow abuse exist concern federal government attempt reform society much danger encumber national government beyond wisdom comprehend ability administer leave local community bear burden remedy evil local habit custom strong variety race creed great federal authority tenuous area within function successfully limited wiser policy leave locality far possess source revenue charge obligation fundamental principle country people sovereign recognize undeniable authority state establish instrument government limit power hold inviolate hand jurisdiction freedom ownership property neither impaired except due process law wealth country public wealth private wealth belong government belongs people government justification take private property except public purpose always necessary keep principle mind lay tax make appropriation right exists levy dollar order expenditure dollar money people except necessary public purpose duly authorize constitution power purse power liberty legal limitation within congress act proceed within limitation always question policy country prosperous free debt rate taxation low opportunity exist assume new burden undertake new enterprise condition prevail limited extent proposal assume new obligation ought postpone unless reproductive capital investment absolutely necessary time still enormous debt interest requirement appropriation pension office veteran bureau war navy department call requirement exclusive post office virtually bring appropriation current year almost show expenditure close 30 every inhabitant country average family five mean tax directly indirectly pay 150 national purpose alone local tax add much enormous expenditure ought increase every possible effort ought reduce one great item ultimately extinguished item war debt already reduce mean annual save interest close present interest charge yearly would seem obvious sooner debt retire taxpayer save interest easy secure fund prosecute need running expense construction improvement item interest heavy charge people country seem might well consider whether greatly worth dispense early possible retire principal debt require serve always policy retire debt revolutionary war period notwithstanding addition make 1812 pay civil war debt within 23 year amount already pay reduction cash balance source exhaust one billion dollar derive excess receipt tax reduction eliminate sale surplus war material another element income practically finish eliminate reduction debt year excessive sum large debt proposal make extend payment period 62 year pay end 20 year cost taxpayer principal f interest 4 per cent total sum pay end 62 year cost almost double another consideration compare purchase power 1913 dollar borrow represented 52 cent value dollar increase due fall price commodity burden debt increase rise cent taxpayer require produce nearly twice amount commodity pay debt dollar return 1913 value pay price high easy deflation government war period slow deflation business curtailment either prompt effective disaster follow room economy cost federal government co n current expenditure expenditures able efficiency government business do expenditures 19161 last year 1925 nearly five time great subtract expenditure debt retirement interest veteran relief increase pension special outlay consist refund trust investment like charge find general expenditure government 1925 slightly twice large 1916 price 1925 approximately 40 per cent high 1916 cost government must also increased government expensive collect much great revenue necessary administer great debt give enlarge improved service agriculture commerce america grown population wealth government expenditures must always share growth take account factor mention believe present federal expense far line expense nearly accomplished deflation mean economy come reduce debt interest charge decline many detail yet correct real improvement however must come additional curtailment expense intelligent order spend economy must constructive avoid far possible increase permanent current expenditure oftentimes capital outlay like internal improvement result actual constructive save economy best sense avoidance waste may mean outlay bring large return constantly engage scientific study future requirement adopt orderly program service economy method prepare afford improvement mere policy economy without instrumentality put operation would ineffective congress wisely set bureau budget investigate inform president recommendation ought make current appropriation give centralize authority general comprehensive understanding reach source income equitable distribution expenditures well work indicate fact departmental estimate 1922 budget law budget estimate 1927 latter figure show reduction departmental estimate come year make possible operation budget system congress provide evidently enough care make appropriation without restraint upon expenditure congress provide check establish office comptroller general purpose maintain budget director comptroller general secure economy efficiency government expenditure well method devise accomplishment end office administer various detail without make error fact judgment important consideration remain instrumentality congress plan ever adopt successful promote economy efficiency congress absolute authority appropriation free exercise judgment evidence may warrant increase decrease budget recommendation ought resist every effort weaken break beneficial system supervise appropriation expenditure without claim economy would mere pretense purpose reduce expenditure secure reduction tax purpose realize commendable promptness way mean committee house undertaken advance meeting congress frame revenue act bill proceed committee take nonpartisan character republican democrat join measure embodies many sound principle tax reform bill correct substantially economic defect inject revenue act 1924 well many remain legacy present form provide sufficient revenue government excessive surtax reduce estate tax rate arv restore reasonable figure every prospect withdraw field state opportunity correct abuse inheritance tax law gift tax publicity section repeal many miscellaneous tax lower abandon board tax appeal administrative feature law improve strengthen approve bill principle far exemption concerned seem committee go far safe go somewhat go extension along line would opinion impair tile integrity system advise bill house christmas prompt action country call thank good sense way mean committee frame economic measure upon economic consideration attitude continue reflect congress taxpayer relief time march 15th installment income tax due nonpartisan effort mean certain quick action determination revenue law definitely promptly solely revenue law one great gift legislature bestow upon constituent commend example file way mean committee follow place sound legislation upon book time give taxpayer full benefit tax reduction next year mean bill reach prior march 15 economic result seek benefit rich benefit people purpose encourage industry order employment may plentiful seek make business good order wage may good encourage prosperity order poverty may banish home seek lay foundation increase production may give people bountiful supply necessary life afford leisure improvement mind appreciation art music literature sculpture paint beneficial enjoyment outdoor sport recreation enlarge resource minister charity mean attempt strengthen spiritual life nation policy foreign relation cast aside suggestion force rest solely foundation peace good good work seek intercourse nation well understanding conference exchange view befits being endow reason result gradual elimination dispute settlement controversy establishment firm friendship america rest world ever exist tit previous time example attitude without influence upon country act upon adjustment make difficult problem reparation second step toward peace europe pave way agreement draw tip locarno conference ratify represent third step toward peace provide economic rehabilitation necessary progress europe strengthen guarantee peace diminish need great armament energy go military effort transfer productive endeavor greatly assist economic progress locarno agreement make european country directly interested without formal intervention america although july 3 1 publicly advocate agreement address make massachusetts consistently refrain intervene except help seek felt could effectively give settlement reparation london conference recent locarno agreement represent success policy insist ought adopt european country settle political problem without involve country begin seem demonstrate policy sound exceedingly gratify observe progress method result promise much beneficial world agreement finally adopt provide guarantee peace make present prime reliance upon force part europe much less necessary natural corollary treaty international contract limitation armament work successfully begin washington conference nothing do time concern land force european objection stand army reduce around necessary police force people propose increase supposable foreign country look slight misapprehension upon land force menace anybody rather protection everybody question disarm upon land peculiarly european practical aspect country would look particular gratitude upon action country might take reduce military force accordance policy intervene unless european power unable agree make request assistance whenever able agree accord especially gratify agreement may sure sympathetic support seem clear reduction army rather navy first importance world present time shall look great satisfaction upon effort give approbation encouragement settle may easily consider reduction limitation naval armament purpose country constantly executive repeat act congress indicate willingness call conference congressional sanction would seem wise participate conference great power naval limitation armament propose upon condition would hold fair promise effective general policy country disarmament ought hesitate adopt practical plan might reasonably expect succeed would care attend conference location constituency would probability prove futile pursuit strengthen bond peace good join nation international conference hold geneva sign agreement laid senate ratification provide suitable measure control publicity international trade arm ammunition implement war also execute protocol provide prohibition use poison gas war accordance principle article 5 treaty relate thereto sign tile washington conference support pan american effort make toward codification international law look sympathy oil investigation conduct philanthropic auspex proposal agreement outlaw war accordance promise make washington conference urge call represent chinese custom conference commission extraterritoriality policy far possible meet aspiration china way consistent interest country involve pending senate nearly three year proposal adhere protocol establish permanent court international justice line precedent mark america effort effect establishment court nature take lead part lay foundation rest establishment hague court arbitration tribunal nominates judge elect tile council assembly league nation proposal submit senate make dependent upon four condition first support court assume obligation league second may participate upon equality state election judge third congress shall determine part expense shall bear fourth statute create tile court shall amend without consent propose additional condition effect bound advisory opinion render without consent court appear independent league true tile judge elect tile assembly council nominate court arbitration assist create part court create statute really treaty make among different country might properly call constitution court statute provide method judge choose court arbitration nominate assembly council league elect act instrument court arbitration instrument league instrument statute even apparent representative sit member council assembly elect judge true pay league though league country member league country accept protocol judge pay league sense could say united state judge pay congress court derive authority statute completely independent league could go function league disband least term judge expire careful provision make statute qualification judge make nomination recommend consult high court justice law school academy judge must persons high moral character qualify hold high judicial office country jurisconsults recognize competence international law must assume requirement continue carefully meet america join country already concerned difficult comprehend human ingenuity could better provide establishment court would maintain independence recognize independence considerable extent matter ability character personality effort make early beginning interfere independence supreme court succeed quality men make tribunal seem authority give advisory opinion interfere independence court advisory opinion harmful may use way beneficial undertake prevent injury rather merely afford remedy injury do principle implies court shall function proper application make decide question involve upon issue submit advisory opinion differ materially decide question involve upon issue submit contend party present time court give advisory opinion judge jurisdiction refuse give one judge jurisdiction nothing work court yet indication impairment independence practice differs materially give like opinion authority constitution several state provision statute seem give court authority political rather judicial court bring case country court adjudge political thereby dismiss improbable political question submit court present time court refuse pass political question support would undoubtedly tendency strengthen refusal propose subject compulsory jurisdiction support court never oblige submit case involve interest decision appearance would always voluntary purpose present case agree might present danger others might bring case court involve interest wish bring adhere probably much would bring case adhere think would legal moral right disregard find one case would go support court one set tip alone reflect ideal nation custom institution thought method life court go international composition yield good various element neither possible support court exactly perfect assume absolutely obligation seek opportunity might well declare oppose support court agreement make undertakes set tribunal thing nation wish do shall find bearing disproportionate share world burden adherence may well remember absolutely escape country bear share world burden case shall far well service others admit discharge duty voluntarily deny forced meet obligation unwillingly difficult imagine anything would helpful world stability tranquility international justice may say contribute factor independently others less fortunately locate make like contribution except mutual cooperation old balance power mutual alliance great military force bring bout mutual dislike independence result domination circumstance ultimately force u like others engage war whatever say matter fact join alliance become military power impair independence stake one else avoid repetition calamity war spring existence arise small incident trifle irritation adjust international court contribute greatly advancement ideal join nation maintain tribunal gradually settlement make provide liquidation debt due government foreign government make great britain finland hungary lithuania poland already approve congress since adjournment agreement enter belgium czechoslovakia latvia estonia italy rumania 11 nation already make settlement represent original principal loan principal sum without interest still pending debt france greece yugoslavia liberia russia present control undertaken openly repudiate nicaragua pay currently austria act congress moratorium 20 year grant remain sum due armenia cease exist independent nation accordance settlement make amount principal interest pay united state agreement aggregate obvious remain settlement undoubtedly make bring sum amount equal principal due present national debt settlement large aggregate felt term grant case generous impose undue burden mutually beneficial observance international faith improvement international credit every reasonable effort make secure agreement liquidation remain country whenever condition make already negotiate bipartisan commission establish congress make thoroughgoing painstaking investigation continue long time meeting representative country concern believe represent instance best do wise settlement secure one important result stabilization foreign currency make exchange assist rather embarrass trade wherever sacrifice make money amply return well understand friendship far adjustment contribute financial stability debtor country good order prosperity progress represent hope improve trade relation mutual contribution civilization world negotiation progress among interested party relation final distribution asset hand alien property custodian government people interested creditor german government people interested debtor owner seize property pending outcome negotiation recommend affirmative legislation present continue possession property hold security settlement claim due people government enough time elapse afford conclusive demonstration result secure indicate immigration law whole beneficial undoubtedly protection wage earner country situation however carefully survey order ascertain whether work needless hardship upon inhabitant deprives comfort society bound close family tie modification adopt afford relief always accordance principle government owes first duty people alien inhabitant another country legal right whatever constitution law treaty residence right accrue however forgetful obligation common humanity country number among best citizen many foreign birth yet enter violation law bi act thereby place class undesirable investigation reveals considerable number come defiance immigration restriction undoubtedly create necessity registration alien ought prejudice alien lie alien standard apply inhabitant manhood place birth restrictive immigration large degree economic purpose apply order may large annual increment good people within border weave economic fabric way supply need without undue injury never time peace country maintain large effective military force army navy marine corps national guard organize reserve represent strength men force well train well equip high morale sound selective service act give broad authority mobilization time peril resource country person material need perfect defense policy accordance ideal equality provision suitable housing pay fund derive sale excess land pending last congress ought bring forward pass reasonable replacement ought make maintain sufficient ammunition reserve navy full treaty tonnage capital ship work go forward modernize old one build aircraft carrier additional fleet submarine fast scout cruiser carefully avoid anything might construe competition armament nation joint army navy maneuver hawaii follow cruise full battle fleet australia new zealand successfully carry demonstration reveal satisfactory condition ship men engage last year suggestion general board navy make investigation report relation aircraft warship result authorization appropriation make scout cruiser fleet submarine complete aircraft carrier equip necessary plane additional training aviation begin military naval academy method coordination cooperation army navy principal aircraft builder perfect suggestion secretary war navy appoint special board make study problem aircraft report air board ought reassure country gratify service satisfactory congress thoroughly complete represent mature think best talent country radical change organization service seem necessary department war navy commerce provide additional assistant secretary necessarily statutory duty would available direction secretary give especial attention air navigation must air strength worthy america provision make two additional brigadier general army air service temporary rank correspond duty award active fly officer army navy aviation great importance national defense commercial development ought proceed improvement necessary experiment investigation country behind art make record speed excellence plane ought go maintain manufacturing plant capable rapid production give national assistance tile la airways equip moderate number plane keep air force train high efficiency thorough believer national defense entirely committed policy adequate preparation thoroughly oppose instigate participate policy competitive armament preparation mean policy militarize people industry solicitous 0111 country great respect army navy foil uniform worn men stand ready time protection encounter danger peril necessary military service activity take behalf aggression behalf peace instrument undertake part promote good support stability among people one desire estimate esteem veteran america hold fellow citizen necessary remember current budget call expenditure behalf nearly amount total cost national government exclusive post office enter last war two previous session congress legislation affect veteran relief enact law liberalize legislation bring number new provision tend nearly meet need veteran well afford necessary authority perfect administration law experience new legislation far clearly demonstrated constructive nature increase benefit receive many ba make eligible benefit many others direct disbursement veteran dependent exceed result otherwise would make degree utilization hospital increase make facility available incapacitated veteran regardless service origin disability new legislation also bring marked improvement service veteran organization men propose additional legislative change consider new law modification make last session congress give thorough test change basic law make careful though sympathetic consideration principal work veteran bureau perfection organization improvement service minor legislative change deem necessary enable bureau retain high grade professional talent essential handling problem bureau change tend toward improvement service carry forward completion hospital construction program recommend consideration proper committee congress enormous outlay make behalf veteran dependent tremendous war debt still require great annual expenditure still high rate taxation every provision make relief disabled necessary care dependent congress may well consider whether financial condition government bounty enlargement general pension emolument ought postpone doubt position agriculture whole much improve since depression three four year ago many locality many group individual apparently fault sometimes due climatic condition sometimes prevail price certain crop still distress condition probably temporary none less acute national government agency departments agriculture commerce farm loan board intermediate credit bank federal reserve board cooperate assistance relief hand locality individual one prosperous year general price level fair exception way item poor others excellent spite lessen production farm income year last year much three precede year agriculture complex industry consist one problem several solve one stroke meet different way small gain despise appear investigation able make farmer whole determine maintain independence wish meddle part government place inevitable restriction involve system direct indirect would result permit government operate agricultural market show commendable skill organize transact business cooperative marketing year turn nearly total agricultural business receive help government department agriculture strengthen facility order able respond marketing association help ought undertake undue regulation equip give prompt information crop prospect supply demand current receipt import export price bill embody principle draft advice approval substantially leader manager cooperative movement present congress enactment legislation also consider provide lease unappropriated public domain grazing purpose adopt uniform policy relative graze public land national forest intimate relation establish agriculture business activity nation mutually dependent advance prosperity advance prosperity meantime government continue activity result unprecedented amount legislation pour great sum money last five year work good road well land water transportation increase support agricultural education extension credit facility farm loan board intermediate credit bank encouragement orderly market repression wasteful speculation continue follow every depression short period price farm produce take maintain lead advance advance reach climax war everyone recall discussion go four five year prior 1914 concern high cost live history apparently begin repeat wholesale price commodity decline farm price increase every reason suppose new era agricultural prosperity lie u probably unprecedented problem muscle shoal seem assumed place proportion real importance probably represent market value much battleship yet discuss congress period year month time ought develop production nitrate primarily incidentally power purpose would serve defensive agricultural industrial purpose favor dispose property meet purpose findings special commission transmit congress information convince best possible disposition make direct authorization congress mean negotiation recommend immediate appointment small joint special committee choose appropriate general stand committee house senate receive bid make reported recommendation acceptance upon law enact effect sale high bidder agree carry purpose anything need demonstrate almost utter incapacity national government deal directly industrial commercial problem provide experience property expend vast fortune tax everybody unable secure result benefit anybody property ought transfer private management condition dedicate public purpose conceive national government commit policy reclamation irrigation desire establish sound basis continue interest locality concern exhaustive study recently make federal reclamation result improve project adjust many difficulty one third project good financial condition another third probably make profitable third unfavorable condition congress already provide survey soon embody report ought suggest method relief make unnecessary appeal congress unless do federal reclamation considerably retard greatly increased cost construction operation become necessary plan advance community organization selective agriculture method sufficient repay increase outlay human economic interest farmer citizen suggest state require exert effort assume responsibility especially intimate detailed difficult work secure settler develop farm directly profit indirectly remotely reimburse believe federal government continue agency plan construct great undertaking need regulate bring use river west many interstate character detailed work create agricultural community rural civilization land make ready reclamation ought either transfer state entirety make cooperative effort state federal government maintenance merchant marine utmost importance national defense service commerce large number ship engage service also surplus supply costly care ought sell investigation make direction prosecute independently reach conclusion fleet direct control single executive head ship board exercise judicial regulatory function accordance original conception report henry dalton business man broad experience knowledge shipping make careful investigation transmit information congress study pursue direction united state chamber commerce also accessible add report special committee house advocate elimination regional consideration become apparent without centralized executive action management great business like management great business flounder incapacity languish division council plain unmistakable reassertion principle unify control always advise intention congress apply necessary increase efficiency merchant fleet perennial conflict coal industry still go great detriment wage earner owner especially public deposit coal country capable supply need hundred year inability manage control great resource benefit concern close national economic failure subject repeat investigation reiterate recommendation yet industry seem never accept modern method adjust difference employer employee industry could serve public much well become subject much effective method control regional consolidation freedom formation marketing association supervision department commerce permit present time national government little authority deal vital necessity life country permit remain powerless attitude must humble supplication authority lodge president department commerce labor give power deal emergency able appoint temporary board authority call witness document conciliate difference encourage arbitration case threaten scarcity exercise control distribution make fact public circumstance statement authoritative source would great public benefit report last coal commission bring forward reconsider act upon orderly process fundamental institution constitution lately amend provide national prohibition congress pass act enforcement similar act provide state law land duty come jurisdiction observe spirit law duty department justice treasury department enforce action prevent smuggle illegal transportation interstate commerce abuse use permit existence source supply illegal traffic almost entirely impose upon federal government treaty foreign government increase activity coast guard revenue agent district attorney enforcement agent effort make prevent violation constitution also put concurrent duty state need active energetic cooperation vigilant action police jurisdiction court assist enforcement request people observance public officer continue effort enforcement congress favorable action budget recommendation prosecution work many year country employ plan development intracoastal inland waterway work along coast important adjunct commerce carry together open harbor resource permit government make agreement war take cape cod canal owner make valuable concession pledge faith government ought redeem two main field consideration one great lake lawrence include erie canal include stabilize lake level waterway power project joint commission unite state canada work plan survey complete next april final determination make apparently except treaty participation country mississippi river stem almost entirely devoted navigation work ohio river complete three year modern channel connect chicago new orleans kansas city pittsburgh lay work tributary prosecute work do preparatory nature along missouri large expenditure make yearly low reach mississippi tributary contribute flood control navigation preliminary measure take tile colorado river project exceedingly important flood control irrigation power development water supply area concern would seem doubtful however whether practical secure affirmative action congress except joint agreement several state government already expend large sum upon scientific research engineering investigation promotion colorado river project actual progress retard many year difference among seven state basin relative water right among different group method attempt settle primary difficulty water right congress authorize colorado river commission agree november 24 1922 upon interstate compact settle right subject ratification state legislatures congress seven state except arizona one time ratify arizona legislature make certain reservation fail meet approval governor subsequently attempt make establish compact upon basis case california impose reservation appear division opinion upon major principle compact difficulty separate contention method development discussion imperative flood control undertaken california arizona preparation make irrigation power domestic water question combine every propose development federal government interested phase state government municipality irrigation district others private corporation still others difference view desirable congress consider creation agency able determine method improvement solely upon economic engineering fact would authorize negotiate settle subject approval congress participation right obligation group particular work method early construction secure along development navigation go every possible encouragement development water power steam still play dominant part become era electricity instal cost moderate tend greatly increase entirely free unavoidable dirt disagreeable feature attendant upon burn coal every facility extend connection various unit superpower plant capable time current increase uniformity entire system railroad throughout country fair state prosperity service good supply car abundant condition would improve public good serve system consolidation recommend congress authorize consolidation tinder supervision interstate commerce commission power approve disapprove propose part exclude new part add informed railroad manager employee reach substantial agreement legislation necessary regulate improve relationship whenever bring forward proposal seem sufficient also protect interest public enact law gratify report railroad manager railroad employee provide board mutual adjustment difference harmony principle conference conciliation arbitration solution problem ought example industry ask protection civilization ready use method civilization strike modern industry many aspect war modern world injure labor injures capital industry involve basic one reduce necessary economic surplus increase cost living injures economic welfare general comfort whole people also involve deep cost tends embitter divide community war class thus weaken unity power national life labor make permanent gain cost general welfare victory organize labor past generation support public opinion manifest inclination manager employee railroad adopt policy action harmony principle mark new epoch industrial life time come careful investigation expenditures success law undertaken administer outlying possession large amount money expend administration alaska appear far proportion number inhabitant amount production indicate thorough investigation likewise consideration give experience law governs philippine report reach indication authority give governor general dependent upon local legislative body render effective effort set example sound administration good government necessary preparation philippine people ultimate independence train art duty provide best act march 3 1911 ought amend term year service judge court united state requisite retirement pay shall 6e compute include continuous aggregate service government ought always alert side humanity ought encourage provision economic justice defenseless ought extend relief national local agency may appropriate case suffer needy ought charitable although 40 state enact measure aid motherhood district columbia still without law carefully consider bill present ought thoughtful consideration order congress may adopt measure hereafter model part union 1883 congress pass civil service act modest begin employee grown classify service remove clerical force nation wasteful effect spoil system make stable efficient time come consider classify postmaster collector custom collector internal revenue prohibition agent act cover present office except otherwise provide executive order necessary statistic gather form basis valuation civil service retirement fund base current condition service confidently expect valuation complete time make available congress present session afford definite knowledge exist future liability present law determination liability propose change present law information create obligation retirement annuities become liability meet future money taxpayer classification act 1923 subsequent legislative action provide adjustment compensation field service position operate materially improve employment condition federal service administration act hand impartial board function without necessity direct appropriation would inadvisable time place hand administration act proper function federal trade commission supervise correct practice commerce detrimental fair competition performs useful function continue support design also help honest business message congress recommend change procedure exist make since commission action reform rule give great speed economy disposal case full opportunity accuse heard change improvement necessary provision make permanency final action yet take measure provide reorganization various department therefore suggest measure great benefit efficient economical administration business government bring forward pass nearly population consist negro race progress make art civilization last 60 year almost beyond belief country loyal citizen still need sympathy kindness helpfulness need reassurance requirement government society deal justice meet protected violence support peaceable enjoyment fruit labor violence punish crime course action worthy american people country many element population many different mode think live strive way loyal high ideal worthy crown american citizenship fundamental institution seek guarantee inhabitant right live life protection public law include license injure others materially physically morally incite revolution violate establish custom long bad sanction enlighten society mean full right liberty equality law without distinction race creed condition grant others enjoy except application principle broad tolerance bigotry another name slavery reduces serfdom direct also seek apply enlarge freedom secure application golden rule utterance ever present practical rule life apparent reach era great general prosperity continue long shall use properly fix quantity wealth country fix time way secure create element time enters production people sufficient moderation contentment willing improve condition process enlarge production eliminate waste distribute equitably prosperity almost without limit lie people dominate selfishness seek immediate rich nonproductive speculation wasteful quarrel return industry confront inevitable result depression privation continue industrious thrifty content fair wage moderate profit return accrue tile development oar natural resource prosperity extend indefinitely deliberation remember purpose legislation translate principle action effort country well good thought way people firmly fix easily change field within immediate improvement secure narrow legislation provide opportunity whether take advantage depend upon people government united state create people solely responsible successful conduct solely benefit effort would little avail unless brought justice enlightenment happiness prosperity home mean opportunity observe religion secure education earn live reign law order growth improvement material spiritual life nation shall able gain end merely action come willing work harmony abide purpose divine providence