
 It is gratifying to report that for the fourth consecutive year the state of the Union in general is good. We are at peace. The country as a whole has had a prosperity never exceeded. Wages are at their highest range, employment is plentiful. Some parts of agriculture and industry have lagged; some localities have suffered from storm and flood. But such losses have been absorbed without serious detriment to our great economic structure. Stocks of goods are moderate and a wholesome caution is prevalent. Rates of interest for industry, agriculture, and government have been reduced. Savers and investors are providing capital for new construction in industry and public works. The purchasing power of agriculture has increased. If the people maintain that confidence which they are entitled to have in themselves, in each other, and in America, a comfortable prosperity will continue.
 
 Without constructive economy in Government expenditures we should not now be enjoying these results or these prospects. Because we are not now physically at war, some people are disposed to forget that our war debt still remains. The Nation must make financial sacrifices, accompanied by a stern self-denial in public expenditures, until we have conquered the disabilities of our public finance. While our obligation to veterans and dependents is large and continuing, the heavier burden of the national debt is being steadily eliminated. At the end of this fiscal year it will be reduced from about $26,600,000,000 to about $17,975,000,000. Annual interest, including war savings, will have been reduced from $1,055,000,000 to $670,0001,000. The sacrifices of the people, the economy of the Government, are showing remarkable results. They should be continued for the purpose of relieving the Nation of the burden of interest and debt and releasing revenue for internal improvements and national development.
 Not only the amount, but the rate, of Government interest has been reduced. Callable bonds have been refunded and paid, so that during this year the average rate of interest on the present public debt for the first time fell below 4 per cent. Keeping the credit of the Nation high is a tremendously profitable operation.
 
 The immediate fruit of economy and the retirement of the public debt is tax reduction. The annual saving in interest between 1925 and 1929 is $212,000,000. Without this no bill to relieve the taxpayers would be worth proposing. The three measures already enacted leave our Government revenues where they are not oppressive. Exemptions, have been increased until 115,000,000 people make but 2,500,000 individual taxable returns, so that further reduction should be mainly for the purpose of removing inequalities. The Secretary of the Treasury has recommended a measure which would give us a much better balanced system of taxation and without oppression produce sufficient revenue. It has my complete support.
 Unforeseen contingencies requiring money are always arising. Our probable surplus for June 30, 1929, is small. A slight depression in business would greatly reduce our revenue because of our present method of taxation. The people ought to take no selfish attitude of pressing for removing moderate and fair taxes which might produce a deficit. We must keep our budget balanced for each year. That is the corner stone of our national credit, the trifling price we pay to command the lowest rate of interest of any great power in the world. Any surplus can be applied to debt reduction, and debt reduction is tax reduction. Under the present circumstances it would be far better to leave the rates as they are than to enact a bill carrying the peril of a deficit. This is not a problem to be approached in a narrow or partisan spirit. All of those who participate in finding a reasonable solution will be entitled to participate in any credit that accrues from it without regard to party. The Congress has already demonstrated that tax legislation can be removed from purely political consideration into the realm of patriotic business principles.
 Any bill for tax reduction should be written by those who are responsible for raising, managing, and expending the finances of the Government. If special interests, too often selfish, always uninformed of the national needs as a whole, with hired agents using their proposed beneficiaries as engines of propaganda, are permitted to influence the withdrawal of their property from taxation, we shall have a law that is unbalanced and unjust, bad for business, bad for the country, probably resulting in a deficit, with disastrous financial Consequences. The Constitution has given the Members of the Congress sole authority to decide what tax measures shall be presented for approval. While welcoming information from any quarter, the Congress should continue to exercise its own judgment in a matter so vital and important to all the interests of the country as taxation.
 
 Being a nation relying not on force, but on fair dealing and good will, to maintain peace with others, we have provided a moderate military force in a form adapted solely to defense. It should be continued with a very generous supply of officers and with the present base of personnel, subject to fluctuations which may be temporarily desirable.
 The five-year program for our air forces is in keeping with this same policy and commensurate with the notable contributions of America to the science of aeronautics. The provisions of the law lately enacted are being executed as fast as the practical difficulties of an orderly and stable development permit.
 While our Army is small, prudence requires that it should be kept in a high state of efficiency and provided with such supplies as would permit of its immediate expansion. The garrison ration has lately been increased. Recommendations for an appropriation of $6,166,000 for new housing made to the previous Congress failed to pass. While most of the Army is well housed, some of it which is quartered in wartime training camps is becoming poorly housed. In the past three years $12,533,000 have been appropriated for reconstruction and repairs, and an authorization has been approved of $22,301,000 for new housing, under which $8,070,000 has already been appropriated. A law has also been passed, complying with the request of the War Department, allocating funds received from the sale of buildings and land for housing purposes. The work, however, is not completed, so that other appropriations are being recommended.
 Our Navy is likewise a weapon of defense. We have a foreign commerce and ocean lines of trade unsurpassed by any other country. We have outlying territory in the two great oceans and long stretches of seacoast studded with the richest cities in the world. We are responsible for the protection of a large population and the greatest treasure ever bestowed upon any people. We are charged with an international duty of defending the Panama Canal. To meet these responsibilities we need a very substantial sea armament. It needs aircraft development, which is being provided under the five-year program. It needs submarines as soon as the department decides upon the best type of construction. It needs airplane carriers and a material addition to its force of cruisers. We can plan for the future and begin a moderate building program.
 This country has put away the Old World policy of competitive armaments. It can never be relieved of the responsibility of adequate national defense. We have one treaty secured by an unprecedented attitude of generosity on our part for a limitation in naval armament. After most careful preparation, extending over months, we recently made every effort to secure a three-power treaty to the same end. We were granted much cooperation by Japan, but we were unable to come to an agreement with Great Britain. While the results of the conference were of considerable value, they were mostly of a negative character. We know now that no agreement can be reached which will be inconsistent with a considerable building program on our part. We are ready and willing to continue the preparatory investigations on the general subject of limitation of armaments which have been started under the auspices of the League of Nations.
 We have a considerable cruiser tonnage, but a part of it is obsolete. Everyone knew that had a three-power agreement been reached it would have left us with the necessity of continuing our building program. The failure to agree should not cause us to build either more or less than we otherwise should. Any future treaty of limitation will call on us for more ships. We should enter on no competition. We should refrain from no needful program. It should be made clear to all the world that lacking a definite agreement, the attitude of any other country is not to be permitted to alter our own policy. It should especially be demonstrated that propaganda will not cause us to change our course. Where there is no treaty limitation, the size of the Navy which America is to have will be solely for America to determine. No outside influence should enlarge it or diminish it. But it should be known to all that our military power holds no threat of aggrandizement. It is a guaranty of peace and security at home, and when it goes abroad it is an instrument for the protection of the legal rights of our citizens under international law, a refuge in time of disorder, and always the servant of world peace. Wherever our flag goes the rights of humanity increase.
 
 The United States Government fleet is transporting a large amount of freight and reducing its drain on the Treasury. The Shipping Board is constantly under pressure, to which it too often yields, to protect private interests, rather than serve the public welfare. More attention should be given to merchant ships as an auxiliary of the Navy. The possibility of including their masters and crews in the Naval Reserve, with some reasonable compensation, should be thoroughly explored as a method of encouraging private operation of shipping. Public operation is not a success. No investigation, of which I have caused several to be made, has failed to report that it could not succeed or to recommend speedy transfer to private ownership. Our exporters and importers are both indifferent about using American ships. It should be our policy to keep our present vessels in repair and dispose of them as rapidly as possible, rather than undertake any new construction. Their operation is a burden on the National Treasury, for which we are not receiving sufficient benefits.
 
 A rapid growth is taking place in aeronautics. The Department of Commerce has charge of the inspection and licensing system and the construction of national airways. Almost 8,000 miles are already completed and about 4,000 miles more contemplated. Nearly 4,400 miles are now equipped and over 3,000 miles more will have lighting and emergency landing fields by next July. Air mail contracts are expected to cover 24 of these lines. Daily airway flying is nearly 15,000 miles and is expected to reach 25,000 miles early next year.
 Flights for other purposes exceed 22,000 miles each day. Over 900 airports, completed and uncompleted, have been laid out. The demand for aircraft has greatly increased. The policy already adopted by the Congress is producing the sound development of this coming industry.
 
 Private enterprise is showing much interest in opening up aviation service to Mexico and Central and South America. We are particularly solicitous to have the United States take a leading part in this development. It is understood that the governments of our sister countries would be willing to cooperate. Their physical features, the undeveloped state of their transportation, make an air service especially adaptable to their usage. The Post Office Department should be granted power to make liberal long-term contracts for carrying our mail, and authority should be given to the Army and the Navy to detail aviators and planes to cooperate with private enterprise in establishing such mail service with the consent of the countries concerned. A committee of the Cabinet will later present a report on this subject.
 
 The importance and benefit of good roads is more and more coming to be appreciated. The National Government has been making liberal contributions to encourage their construction. The results and benefits have been very gratifying. National participation, however, should be confined to trunk-line systems. The national tax on automobiles is now nearly sufficient to meet this outlay. This tax is very small, and on low-priced cars is not more than $2 or $3 each year.
 While the advantage of having good roads is very large, the desire for improved highways is not limited to our own country. It should and does include all the Western Hemisphere. The principal points in Canada are already accessible. We ought to lend our encouragement in any way we can for more good roads to all the principal points in this hemisphere south of the Rio Grande. It has been our practice to supply these countries with military and naval advisers, when they have requested it, to assist them in national defense. The arts of peace are even more important to them and to us. Authority should be given by law to provide them at their request with engineering advisers for the construction of roads and bridges. In some of these countries already wonderful progress is being made in road building, but the engineering features are often very exacting and the financing difficult. Private interests should look with favor on all reasonable loans sought by these countries to open such main lines of travel.
 This general subject has been promoted by the Pan American Congress of Highways, which will convene again at Rio de Janeiro in July, 1928. It is desirable that the Congress should provide for the appointment of delegates to represent the Government of the United States.
 
 We have a temporary parcel-post convention with Cuba. The advantage of it is all on our side. During 1926 we shipped twelve times as many parcels, weighing twenty-four times as much, as we received. This convention was made on the understanding that we would repeal an old law prohibiting the importation of cigars and cigarettes in quantities less than 3,000 enacted in 1866 to discourage smuggling, for which it has long been unnecessary. This law unjustly discriminates against an important industry of Cuba. Its repeal has been recommended by the Treasury and Post Office Departments. Unless this is done our merchants and railroads will find themselves deprived of this large parcel-post business after the 1st of next March, the date of the expiration of the convention, which has been extended upon the specific understanding that it would expire at that time unless this legislation was enacted. We purchase large quantities of tobacco made in Cuba. It is not probable that our purchases would be any larger if this law was repealed, while it would be an advantage to many other industries in the United States.
 
 Conditions in the Philippine Islands have been steadily improved. Contentment and good order prevail. Roads, irrigation works, harbor improvements, and public buildings are being constructed. Public education and sanitation have been advanced. The Government is in a sound financial condition. These immediate results were especially due to the administration of Gov. Gen. Leonard Wood. The six years of his governorship marked a distinct improvement in the islands and rank as one of the outstanding accomplishments of this distinguished man. His death is a loss to the Nation and the islands.
 Greater progress could be made, more efficiency could be put. into administration, if the Congress would undertake to expend, through its appropriating power, all or a part of the customs revenues which are now turned over to the Philippine treasury. The powers of the auditor of the islands also need revision and clarification. The government of the islands is about 98 per cent in the hands of the Filipinos. An extension of the policy of self-government will be hastened by the demonstration on their part of their desire and their ability to carry out cordially and efficiently the provisions of the organic law enacted by the Congress for the government of the islands. It would be well for a committee of the Congress to visit the islands every two years.
 A fair degree of progress is being made in Porto Rico. Its agricultural products are increasing; its treasury position, which has given much concern, shows improvement. I am advised by the governor that educational facilities are still lacking. Roads are being constructed, which he represents are the first requisite for building schoolhouses. The loyalty of the island to the United States is exceedingly gratifying. A memorial will be presented to you requesting authority to have the governor elected by the people of Porto Rico. This was never done in the case of our own Territories. It is admitted that education outside of the towns is as yet very deficient. Until it has progressed further the efficiency of the government and the happiness of the people may need the guiding hand of an appointed governor. As it is not contemplated that any change should be made immediately, the general subject may well have the thoughtful study of the Congress.
 
 The number of commercial ships passing through the Panama Canal has increased from 3,967 in 1923 to 5,475 in 1927. The total amount of tolls turned into the Treasury is over $166,000,000, while all the operations of the canal have yielded a surplus of about $80,000,000. In order to provide additional storage of water and give some control over the floods of the Chagres River, it is proposed to erect a dam to cost about $12,000,000 at Alhajuela. It will take some five years to complete this work.
 
 The past year has seen a marked improvement in the general condition of agriculture. Production is better balanced and without acute shortage or heavy surplus. Costs have been reduced and the average output of the worker increased. The level of farm prices has risen while others have fallen, so that the purchasing power of the farmer is approaching a normal figure. The individual farmer is entitled to great credit for the progress made since 1921. He has adjusted his production and through cooperative organizations and other methods improved his marketing. He is using authenticated facts and employing sound methods which other industries are obliged to use to secure stability and prosperity. The old-fashioned haphazard system is being abandoned, economics are being applied to ascertain the best adapted unit of land, diversification is being promoted, and scientific methods are being used in production, and business principles in marketing.
 Agriculture has not fully recovered from postwar depression. The fact is that economic progress never marches forward in a straight line. It goes in waves. One part goes ahead, while another halts and another recedes. Everybody wishes agriculture to prosper. Any sound and workable proposal to help the farmer will have the earnest support of the Government. Their interests are not all identical. Legislation should assist as many producers in as many regions as possible. It should be the aim to assist the farmer to work out his own salvation socially and economically. No plan will be of any permanent value to him which does not leave him standing on his own foundation.
 In the past the Government has spent vast sums to bring land under cultivation. lt. is apparent that this has reached temporarily the saturation point. We have had a surplus of production and a poor market for land, which has only lately shown signs of improvement. The main problem which is presented for solution is one of dealing with a surplus of production. It is useless to propose a temporary expedient. What is needed is permanency and stability. Government price fixing is known to be unsound and bound to result in disaster. A Government subsidy would work out in the same way. It can not be sound for all of the people to hire some of the people to produce a crop which neither the producers nor the rest of the people want.
 Price fixing and subsidy will both increase the surplus, instead of diminishing it. Putting the Government directly into business is merely a combination of subsidy and price fixing aggravated by political pressure. These expedients would lead logically to telling the farmer by law what and how much he should plant and where he should plant it, and what and how much he should sell and where he should sell it. The most effective means of dealing with surplus crops is to reduce the surplus acreage. While this can not be done by the individual farmer, it can be done through the organizations already in existence, through the information published by the Department of Agriculture, and especially through banks and others who supply credit refusing to finance an acreage manifestly too large.
 It is impossible to provide by law for an assured success and prosperity for all those who engage in farming. If acreage becomes overextended, the Government can not assume responsibility for it. The Government can, however, assist cooperative associations and other organizations in orderly marketing and handling a surplus clearly due to weather and seasonal conditions, in order to save the producer from preventable loss. While it is probably impossible to secure this result at a single step, and much will have to be worked out by trial and rejection, a beginning could be made by setting up a Federal board or commission of able and experienced men in marketing, granting equal advantages under this board to the various agricultural commodities and sections of the country, giving encouragement to the cooperative movement in agriculture, and providing a revolving loan fund at a moderate rate of interest for the necessary financing. Such legislation would lay the foundation for a permanent solution of the surplus problem.
 This is not a proposal to lend more money to the farmer, who is already fairly well financed, but to lend money temporarily to experimental marketing associations which will no doubt ultimately be financed by the regularly established banks, as were the temporary operations of the War Finance Corporation. Cooperative marketing especially would be provided with means of buying or building physical properties.
 The National Government has almost entirely relieved the farmer from income taxes by successive tax reductions, but State and local taxes have increased, putting on him a grievous burden. A policy of rigid economy should be applied to State and local expenditures. This is clearly within the legislative domain of the States. The Federal Government has also improved our banking structure and system of agricultural credits. The farmer will be greatly benefited by similar action in many States. The Department of Agriculture is undergoing changes in organization in order more completely to separate the research and regulatory divisions, that each may be better administered. More emphasis is being placed on the research program, not only by enlarging the appropriations for State experiment stations but by providing funds for expanding the research work of the department. It is in this direction that much future progress can be expected.
 
 The present tariff rates supply the National Treasury with well over $600,000,000 of annual revenue. Yet, about 65 per cent of our imports come in duty free. Of the remaining 35 per cent of imports on which duties are laid about 23 per cent consists of luxuries and agricultural products, and the balance of about 12 per cent, amounting, to around $560,000,000 is made up of manufactures and merchandise. As no one is advocating any material reduction in the rates on agriculture or luxuries, it is only the comparatively small amount of about $560,000,000 of other imports that are really considered in any discussion of reducing tariff rates. While this amount, duty free, would be large enough seriously to depress many lines of business in our own country, it is of small importance when spread over the rest of the world.
 It is often stated that a reduction of tariff rates on industry would benefit agriculture. It would be interesting to know to what commodities it is thought this could be applied. Everything the farmer uses in farming is already on the free list. Nearly everything he sells is protected. It would seem to be obvious that it is better for tile country to have the farmer raise food to supply the domestic manufacturer than the foreign manufacturer. In one case our country would have only the farmer; in the other it would have the farmer and the manufacturer. Assuming that Europe would have more money if it sold us larger amounts of merchandise, it is not certain it would consume more food, or, if it did, that its purchases would be made in this country. Undoubtedly it would resort to the cheapest market, which is by no means ours. The largest and best and most profitable market for the farmer in the world is our own domestic market. Any great increase in manufactured imports means the closing of our own plants. Nothing would be worse for agriculture.
 Probably no one expects a material reduction in the rates on manufactures while maintaining the rates on agriculture. A material reduction in either would be disastrous to tile farmer. It would mean a general shrinkage of values, a deflation of prices, a reduction of wages, a general depression carrying our people down to the low standard of living in our competing countries. It is obvious that this would not improve but destroy our market for imports, which is best served by maintaining our present high purchasing power under which in the past five years imports have increased 63 per cent.
 
 It is exceedingly important that the Federal land and joint-stock land banks should furnish the best possible service for agriculture. Certain joint-stock banks have fallen into improper and unsound practices, resulting in the indictment of the officials of three of them. More money has been provided for examinations, and at the instance of the Treasury rules and regulations of the Federal Farm Board have been revised. Early last May three of its members resigned. Their places were filled with men connected with the War Finance Corporation. Eugene Meyer being designated as Farm Loan Commissioner. The new members have demonstrated their ability in the field of agricultural finance in the extensive operations of he War Finance Corporation. Three joint-stock banks have gone into receivership. It is necessary to preserve the public confidence in this system in order to find a market for their bonds. A recent flotation was made at a record low rate of 4 per cent. Careful supervision is absolutely necessary to protect the investor and enable these banks to exercise their chief function in serving agriculture.
 
 The last year has seen considerable changes in the problem of Muscle Shoals. Development of other methods show that nitrates can probably be produced at less cost than by the use of hydroelectric power. Extensive investigation made by the Department of War indicates that the nitrate plants on this project are of little value for national defense and can probably be disposed of within two years. The oxidation part of the plants, however, should be retained indefinitely. This leaves this project mostly concerned with power. It should, nevertheless, continue to be dedicated to agriculture. It is probable that this desire can be best served by disposing of the plant and applying the revenues received from it to research for methods of more economical production of concentrated fertilizer and to demonstrations and other methods of stimulating its use on the farm. But in disposing of the property preference should be given to proposals to use all or part of it for nitrate production and fertilizer manufacturing.
 
 For many years the Federal Government has been building a system of dikes along the Mississippi River for protection against high water. During the past season the lower States were overcome by a most disastrous flood. Many thousands of square miles were inundated a great many lives were lost, much livestock was drowned, and a very heavy destruction of property was inflicted upon the inhabitants. The American Red Cross at once went to the relief of the stricken communities. Appeals for contributions have brought in over $17,000,000. The Federal Government has provided services, equipment, and supplies probably amounting to about $7,000,000 more. Between $5,000,000 and $10,000,000 in addition have been provided by local railroads, the States, and their political units. Credits have been arranged by the Farm Loan Board, and three emergency finance corporations with a total capital of $3,000,000 have insured additional resources to the extent of $12,000,000. Through these means the 700,000 people in the flooded areas have been adequately supported. Provision has been made to care for those in need until after the 1st of January.
 The Engineering Corps of the Army has contracted to close all breaks in the dike system before the next season of high water. A most thorough and elaborate survey of the whole situation has been made and embodied in a report with recommendations for future flood control, which will be presented to the Congress. The carrying out of their plans will necessarily extend over a series of years. They will call for a raising and strengthening of the dike system with provision for emergency spillway's and improvements for the benefit of navigation.
 Under the present law the land adjacent to the dikes has paid one-third of the cost of their construction. This has been a most extraordinary concession from the plan adopted in relation to irrigation, where the general rule has been that the land benefited should bear the entire expense. It is true, of course, that the troublesome waters do not originate on the land to be reclaimed, but it is also true that such waters have a right of way through that section of the country and the land there is charged with that easement. It is the land of this region that is to be benefited. To say that it is unable to bear any expense of reclamation is the same thing as saying that it is not worth reclaiming. Because of expenses incurred and charges already held against this land, it seems probable that some revision will have to be made concerning the proportion of cost which it should bear. But it is extremely important that it should pay enough so that those requesting improvements will be charged with some responsibility for their cost, and the neighborhood where works are constructed have a pecuniary interest in preventing waste and extravagance and securing a wise and economical expenditure of public funds.
 It is necessary to look upon this emergency as a national disaster. It has been so treated from its inception. Our whole people have provided with great generosity for its relief. Most of the departments of the Federal Government have been engaged in the same effort. The governments of the afflicted areas, both State and municipal, can not be given too high praise for the courageous and helpful way in which they have come to the rescue of the people. If the sources directly chargeable can not meet the demand, the National Government should not fail to provide generous relief. This, however, does not mean restoration. The Government is not an insurer of its citizens against the hazard of the elements. We shall always have flood and drought, heat and cold, earthquake and wind, lightning and tidal wave, which are all too constant in their afflictions. The Government does not undertake to reimburse its citizens for loss and damage incurred under such circumstances. It is chargeable, however, with the rebuilding of public works and the humanitarian duty of relieving its citizens from distress.
 The people in the flooded area and their representatives have approached this problem in the most generous and broad-minded way. They should be met with a like spirit on the part of the National government. This is all one country. The public needs of each part must be provided for by the public at large. No required relief should be refused. An adequate plan should be adopted to prevent a recurrence of this disaster in order that the people may restore to productivity and comfort their fields and their towns.
 Legislation by this Congress should be confined to our principal and most pressing problem, the lower Mississippi, considering tributaries only so far as they materially affect the main flood problem. A definite Federal program relating to our waterways was proposed when the last Congress authorized a comprehensive survey of all the important streams of the country in order to provide for their improvement, including flood control, navigation, power, and irrigation. Other legislation should wait pending a report on this survey. The recognized needs of the Mississippi should not be made a vehicle for carrying other projects. All proposals for development should stand on their own merits. Any other method would result in ill-advised conclusions, great waste of money, and instead of promoting would delay the orderly and certain utilization of our water resources.
 Very recently several of the New England States have suffered somewhat similarly from heavy rainfall and high water. No reliable estimate of damage has yet been computed, but it is very large to private and public property. The Red Cross is generously undertaking what is needed for immediate relief, repair and reconstruction of houses, restocking of domestic animals, and food, clothing, and shelter. A considerable sum of money will be available through the regular channels in the Department of Agriculture for reconstruction of highways. It may be necessary to grant special aid for this purpose. Complete reports of what is required will undoubtedly be available early in the session.
 
 The Congress in its last session authorized the general improvements necessary to provide the Mississippi waterway system with better transportation. Stabilization of the levels of the Great Lakes and their opening to the sea by an effective shipway remain to be considered. Since the last session the Board of Engineers of the War Department has made a report on the proposal for a canal through the State of New York, and the Joint Board of Engineers, representing Canada and the United States, has finished a report on the St. Lawrence River. Both of these boards conclude that the St. Lawrence project is cheaper, affords a more expeditious method of placing western products in European markets, and will cost less to operate. The State Department has requested the Canadian Government to negotiate treaties necessary to provide for this improvement. It will also be necessary to secure an agreement with Canada to put in works necessary to prevent fluctuation in the levels of the Great Lakes.
 Legislation is desirable for the construction of a dam at Boulder Canyon on the Colorado River, primarily as a method of flood control and irrigation. A secondary result would be a considerable power development and a source of domestic water supply for southern California. Flood control is clearly a national problem, and water supply is a Government problem, but every other possibility should be exhausted before the Federal Government becomes engaged in the power business. The States which are interested ought to reach mutual agreement. This project is in reality their work. If they wish the Federal Government to undertake it, they should not hesitate to make the necessary concessions to each other. This subject is fully discussed in the annual report of the Secretary of the Interior. The Columbia River Basin project is being studied and will be one to be considered at some future time.
 The Inland Waterways Corporation is proving successful and especially beneficial to agriculture. A survey is being made to determine its future needs. It has never been contemplated that if inland rivers were opened to navigation it would then be necessary for the Federal Government to provide the navigation. Such a request is very nearly the equivalent of a declaration that their navigation is not profitable, that the commodities which they are to carry can be taken at a cheaper rate by some other method, in which case the hundreds of millions of dollars proposed to be expended for opening rivers to navigation would be not only wasted, but would entail further constant expenditures to carry the commodities of private persons for less than cost.
 The policy is well established that the Government should open public highways on land and on water, but for use of the public in their private capacity. It has put on some demonstration barge lines, but always with the expectation that if they prove profitable they would pass into private hands and if they do not prove profitable they will be withdrawn. The problems of transportation over inland waterways should be taken up by private enterprise, so that the public will have the advantage of competition in service. It is expected that some of our lines can be sold, some more demonstration work done, and that with the completion of the Ohio project a policy of private operation can be fully developed.
 
 After more than two generations of constant debate, our country adopted a system of national prohibition under all the solemnities involved in an amendment to the Federal Constitution. In obedience to this mandate the Congress and the States, with one or two notable exceptions, have passed required laws for its administration and enforcement. This imposes upon the citizenship of the country, and especially on all public officers, not only the duty to enforce, but the obligation to observe the sanctions of this constitutional provision and its resulting laws. If this condition could be secured, all question concerning prohibition would cease. The Federal Government is making every effort to accomplish these results through careful organization, large appropriations, and administrative effort. Smuggling has been greatly cut down, the larger sources of supply for illegal sale have been checked, and by means of injunction and criminal prosecution the process of enforcement is being applied. The same vigilance on the part of local governments would render these efforts much more successful. The Federal authorities propose to discharge their obligation for enforcement to the full extent of their ability.
 
 History does not anywhere record so much progress made in the same length of time as that which has been accomplished by the Negro race in the United States since the Emancipation Proclamation. They have come up from slavery to be prominent in education, the professions, art, science, agriculture, banking, and commerce. It is estimated that 50,000 of them are on the Government pay rolls, drawing about $50,000,000 each year. They have been the recipients of presidential appointments and their professional ability has arisen to a sufficiently high plane so that they have been intrusted with the entire management and control of the great veterans hospital at Tuskegee, where their conduct has taken high rank. They have shown that they have been worthy of all the encouragement which they have received. Nevertheless, they are too often subjected to thoughtless and inconsiderate treatment, unworthy alike of the white or colored races. They have especially been made the target of the foul crime of lynching. For several years these acts of unlawful violence had been diminishing. In the last year they have shown an increase. Every principle of order and law and liberty is opposed to this crime. The Congress should enact any legislation it can under the Constitution to provide for its elimination.
 
 The condition of the American Indian has much improved in recent years. Full citizenship was bestowed upon them on June 2, 1924, and appropriations for their care and advancement have been increased. Still there remains much to be done.
 Notable increases in appropriations for the several major functions performed by the Department of the Interior on behalf of the Indians have marked the last five years. In that time, successive annual increases in appropriations for their education total $1,804,325; for medical care, $578,000; and for industrial advancement, $205,000; or $2,582,325 more than would have been spent in the same period on the basis of appropriations for 1923 and the preceding years.
 The needs along health, educational, industrial and social lines however, are great, and the Budget estimates for 1929 include still further increases for Indian administration.
 To advance the time when the Indians may become self-sustaining, it is my belief that the Federal Government should continue to improve the facilities for their care, and as rapidly as possible turn its responsibility over to the States.
 
 Legislation authorizing a system of fuel administration and the appointment by the President of a Board of Mediation and Conciliation in case of actual or threatened interruption of production is needed. The miners themselves are now seeking information and action from the Government, which could readily be secured through such a board. It is believed that a thorough investigation and reconsideration of this proposed policy by the Congress will demonstrate that this recommendation is sound and should be adopted.
 
 The National Government is undertaking to join in the formation of a cooperative committee of lawyers, engineers, and public officers, to consider what legislation by the States or by the Congress can be adopted for the preservation and conservation of our supply of petroleum. This has come to be one of the main dependencies for transportation and power so necessary to our agricultural and industrial life. It is expected the report of this committee will be available for later congressional action. Meantime, the requirement that the Secretary of the Interior should make certain leases of land belonging to the Osage Indians, in accordance with the act of March 3, 1921, should be repealed. The authority to lease should be discretionary, in order that the property of the Indians way not be wasted and the public suffer a future lack of supply.
 
 Under treaty the property held by the Alien Property Custodian was to be retained until suitable provision had been made for the satisfaction of American claims. While still protecting the American claimants, in order to afford every possible accommodation to the nationals of the countries whose property was held, the Congress has made liberal provision for the return of a larger part of the property. All trusts under $10,000 were returned in full, and partial returns were made on the others. The total returned was approximately $350,000,000.
 There is still retained, however, about $250,000,000. The Mixed Claims Commission has made such progress in the adjudication of claims that legislation can now be enacted providing for the return of the property, which should be done under conditions which will protect our Government and our claimants. Such a measure will be proposed, and I recommend its enactment.
 
 In order to increase the efficiency of transportation and decrease its cost to the shipper, railroad consolidation must be secured. Legislation is needed to simplify the necessary procedure to secure such agreements and arrangements for consolidation, always under the control and with the approval of the Interstate Commerce Commission. Pending this, no adequate or permanent reorganization can be made of the freight-rate structure. Meantime, both agriculture and industry are compelled to wait for needed relief. This is purely a business question, which should be stripped of all local and partisan bias and decided on broad principles and its merits in order to promote the public welfare. A large amount of new construction and equipment, which will furnish employment for labor and markets for commodities of both factory and farm, wait on the decision of this important question. Delay is holding back the progress of our country.
 Many of the same arguments are applicable to the consolidation of the Washington traction companies.
 
 The care which this country has lavished on its veterans is known of all men. The yearly outlay for this purpose is about $750,000,000, or about the cost of running the Federal Government, outside of the Post Office Department, before the World War. The Congress will have before it recommendations of the American Legion, the Veterans of Foreign Wars, and other like organizations, which should receive candid consideration. We should continue to foster our system of compensation and rehabilitation, and provide hospitals and insurance. The magnitude of the undertaking is already so large that all requests calling for further expenditure should have the most searching scrutiny. Our present system of pensions is already sufficiently liberal. It was increased by the last Congress for Civil and Spanish War veterans and widows and for some dependents.
 It has been suggested that the various governmental agencies now dealing with veterans' relief be consolidated. This would bring many advantages. It is recommended that the proper committees of the Congress make a thorough survey of this subject, in order to determine if legislation to secure such consolidation is desirable.
 
 For many years it has been the policy of the Federal Government to encourage and foster the cause of education. Large sums of money are annually appropriated to carry on vocational training. Many millions go into agricultural schools. The general subject is under the immediate direction of a Commissioner of Education. While this subject is strictly a State and local function, it should continue to have the encouragement of the National Government. I am still of the opinion that much good could be accomplished through the establishment of a Department of Education and Relief, into which would be gathered all of these functions under one directing member of the Cabinet.
 
 Industrial relations have never been more peaceful. In recent months they have suffered from only one serious controversy. In all others difficulties have been adjusted, both management and labor wishing to settle controversies by friendly agreement rather than by compulsion. The welfare of women and children is being especially guarded by our Department of Labor. Its Children's Bureau is in cooperation with 26 State boards and 80 juvenile courts.
 Through its Bureau of Immigration it bas been found that medical examination abroad has saved prospective immigrants from much hardship. Some further legislation to provide for reuniting families when either the husband or the wife is in this country, and granting more freedom for the migration of the North American Indian tribes is desirable.
 The United States Employment Service has enabled about 2,000,000 men and women to gain paying positions in the last fiscal year. Particular attention has been given to assisting men past middle life and in providing field labor for harvesting agricultural crops. This has been made possible in part through the service of the Federal Board for Vocational Education, which is cooperating with the States in a program to increase the technical knowledge and skill of the wage earner.
 
 Construction is under way in the country and ground has been broken for carrying out a public-building program for Washington. We have reached a time when not only the conveniences but the architectural beauty of the public buildings of the Capital City should be given much attention. It will be necessary to purchase further land and provide the required continuing appropriations.
 
 Provision is being made to commemorate the two hundredth anniversary of the birth of George Washington. Suggestion has been made for the construction of a memorial road leading from the Capital to Mount Vernon, which may well have the consideration of the Congress, and the commission intrusted with preparations for the celebration will undoubtedly recommend publication of the complete writings of Washington and a series of writings by different authors relating to him.
 February 25, 1929. is the one hundred and fiftieth anniversary of the capture of Fort Sackville, at Vincennes, in the State of Indiana. This eventually brought into the Union what was known as the Northwest Territory, embracing the region north of the Ohio River between the Alleghenies and the Mississippi River. This expedition was led by George Rogers Clark. His heroic character and the importance of his victory are too little known and understood. They gave us not only this Northwest Territory but by means of that the prospect of reaching the Pacific. The State of Indiana is proposing to dedicate the site of Fort Sackville as a national shrine. The Federal Government may well make some provision for the erection under its own management of a fitting memorial at that point.
 
 It is the policy of the United States to promote peace. We are a peaceful people and committed to the settling of disputes by amicable adjustment rather than by force. We have believed that peace can best be secured by a faithful observance on our part of the principles of international law, accompanied by patience and conciliation, and requiring of others a like treatment for ourselves. We have lately had some difference with Mexico relative to the injuries inflicted upon our nationals and their property within that country. A firm adherence to our rights and a scrupulous respect for the sovereignty of Mexico, both in accordance with the law of nations, coupled with patience and forbearance, it is hoped will resolve all our differences without interfering with the friendly relationship between the two Governments.
 We have been compelled to send naval and marine forces to China to protect the lives and property of our citizens. Fortunately their simple presence there has been sufficient to prevent any material loss of life. But there has been considerable loss of property. That unhappy country is torn by factions and revolutions which bid fair to last for an indefinite period. Meanwhile we are protecting our citizens and stand ready to cooperate with any government which may emerge in promoting the welfare of the people of China. They have always had our friendship, and they should especially merit our consideration in these days of their distraction and distress.
 We were confronted by similar condition on a small scale in Nicaragua. Our marine and naval forces protected our citizens and their property and prevented a heavy sacrifice of life and the destruction of that country by a reversion to a state of revolution. Henry L. Stimson, former Secretary of War, was sent there to cooperate with our diplomatic and military officers in effecting a settlement between the contending parties. This was done on the assurance that we would cooperate in restoring a state of peace where our rights would be protected by giving our assistance in the conduct of the next presidential election, which occurs in a few months. With this assurance the population returned to their peacetime pursuits, with the exception of some small roving bands of outlaws.
 In general, our relations with other countries can be said to have improved within the year. While having a due regard for our own affairs, the protection of our own rights, and the advancement of our own people, we can afford to be liberal toward others. Our example has become of great importance in the world. It is recognized that we are independent, detached, and can and do take a disinterested position in relation to international affairs. Our charity embraces the earth. Our trade is far flung. Our financial favors are widespread. Those who are peaceful and law-abiding realize that not only have they nothing to fear from us, but that they can rely on our moral support. Proposals for promoting the peace of the world will have careful consideration. But we are not a people who are always seeking for a sign. We know that peace comes from honesty and fair dealing, from moderation, and a generous regard for the rights of others. The heart of the Nation is more important than treaties. A spirit of generous consideration is a more certain defense than great armaments. We should continue to promote peace by our example, and fortify it by such international covenants against war as we are permitted under our Constitution to make.
 
 Our country has made much progress. But it has taken, and will continue to take, much effort. Competition will be keen, the temptation to selfishness and arrogance will be severe, the provocations to deal harshly with weaker peoples will be many. All of these are embraced in the opportunity for true greatness. They will be overbalanced by cooperation by generosity, and a spirit of neighborly kindness. The forces of the universe are taking humanity in that direction. In doing good, in walking humbly, in sustaining its own people in ministering to other nations, America will work out its own mighty destiny.
It is gratifying to report that for the fourth consecutive year the state of the Union in general is good. We are at peace. The country as a whole has had a prosperity never exceeded. Wages are at their highest range, employment is plentiful. Some parts of agriculture and industry have lagged; some localities have suffered from storm and flood. But such losses have been absorbed without serious detriment to our great economic structure. Stocks of goods are moderate and a wholesome caution is prevalent. Rates of interest for industry, agriculture, and government have been reduced. Savers and investors are providing capital for new construction in industry and public works. The purchasing power of agriculture has increased. If the people maintain that confidence which they are entitled to have in themselves, in each other, and in America, a comfortable prosperity will continue. Without constructive economy in Government expenditures we should not now be enjoying these results or these prospects. Because we are not now physically at war, some people are disposed to forget that our war debt still remains. The Nation must make financial sacrifices, accompanied by a stern self-denial in public expenditures, until we have conquered the disabilities of our public finance. While our obligation to veterans and dependents is large and continuing, the heavier burden of the national debt is being steadily eliminated. At the end of this fiscal year it will be reduced from about $26,600,000,000 to about $17,975,000,000. Annual interest, including war savings, will have been reduced from $1,055,000,000 to $670,0001,000. The sacrifices of the people, the economy of the Government, are showing remarkable results. They should be continued for the purpose of relieving the Nation of the burden of interest and debt and releasing revenue for internal improvements and national development. Not only the amount, but the rate, of Government interest has been reduced. Callable bonds have been refunded and paid, so that during this year the average rate of interest on the present public debt for the first time fell below 4 per cent. Keeping the credit of the Nation high is a tremendously profitable operation. The immediate fruit of economy and the retirement of the public debt is tax reduction. The annual saving in interest between 1925 and 1929 is $212,000,000. Without this no bill to relieve the taxpayers would be worth proposing. The three measures already enacted leave our Government revenues where they are not oppressive. Exemptions, have been increased until 115,000,000 people make but 2,500,000 individual taxable returns, so that further reduction should be mainly for the purpose of removing inequalities. The Secretary of the Treasury has recommended a measure which would give us a much better balanced system of taxation and without oppression produce sufficient revenue. It has my complete support. Unforeseen contingencies requiring money are always arising. Our probable surplus for June 30, 1929, is small. A slight depression in business would greatly reduce our revenue because of our present method of taxation. The people ought to take no selfish attitude of pressing for removing moderate and fair taxes which might produce a deficit. We must keep our budget balanced for each year. That is the corner stone of our national credit, the trifling price we pay to command the lowest rate of interest of any great power in the world. Any surplus can be applied to debt reduction, and debt reduction is tax reduction. Under the present circumstances it would be far better to leave the rates as they are than to enact a bill carrying the peril of a deficit. This is not a problem to be approached in a narrow or partisan spirit. All of those who participate in finding a reasonable solution will be entitled to participate in any credit that accrues from it without regard to party. The Congress has already demonstrated that tax legislation can be removed from purely political consideration into the realm of patriotic business principles. Any bill for tax reduction should be written by those who are responsible for raising, managing, and expending the finances of the Government. If special interests, too often selfish, always uninformed of the national needs as a whole, with hired agents using their proposed beneficiaries as engines of propaganda, are permitted to influence the withdrawal of their property from taxation, we shall have a law that is unbalanced and unjust, bad for business, bad for the country, probably resulting in a deficit, with disastrous financial Consequences. The Constitution has given the Members of the Congress sole authority to decide what tax measures shall be presented for approval. While welcoming information from any quarter, the Congress should continue to exercise its own judgment in a matter so vital and important to all the interests of the country as taxation. Being a nation relying not on force, but on fair dealing and good will, to maintain peace with others, we have provided a moderate military force in a form adapted solely to defense. It should be continued with a very generous supply of officers and with the present base of personnel, subject to fluctuations which may be temporarily desirable. The five-year program for our air forces is in keeping with this same policy and commensurate with the notable contributions of America to the science of aeronautics. The provisions of the law lately enacted are being executed as fast as the practical difficulties of an orderly and stable development permit. While our Army is small, prudence requires that it should be kept in a high state of efficiency and provided with such supplies as would permit of its immediate expansion. The garrison ration has lately been increased. Recommendations for an appropriation of $6,166,000 for new housing made to the previous Congress failed to pass. While most of the Army is well housed, some of it which is quartered in wartime training camps is becoming poorly housed. In the past three years $12,533,000 have been appropriated for reconstruction and repairs, and an authorization has been approved of $22,301,000 for new housing, under which $8,070,000 has already been appropriated. A law has also been passed, complying with the request of the War Department, allocating funds received from the sale of buildings and land for housing purposes. The work, however, is not completed, so that other appropriations are being recommended. Our Navy is likewise a weapon of defense. We have a foreign commerce and ocean lines of trade unsurpassed by any other country. We have outlying territory in the two great oceans and long stretches of seacoast studded with the richest cities in the world. We are responsible for the protection of a large population and the greatest treasure ever bestowed upon any people. We are charged with an international duty of defending the Panama Canal. To meet these responsibilities we need a very substantial sea armament. It needs aircraft development, which is being provided under the five-year program. It needs submarines as soon as the department decides upon the best type of construction. It needs airplane carriers and a material addition to its force of cruisers. We can plan for the future and begin a moderate building program. This country has put away the Old World policy of competitive armaments. It can never be relieved of the responsibility of adequate national defense. We have one treaty secured by an unprecedented attitude of generosity on our part for a limitation in naval armament. After most careful preparation, extending over months, we recently made every effort to secure a three-power treaty to the same end. We were granted much cooperation by Japan, but we were unable to come to an agreement with Great Britain. While the results of the conference were of considerable value, they were mostly of a negative character. We know now that no agreement can be reached which will be inconsistent with a considerable building program on our part. We are ready and willing to continue the preparatory investigations on the general subject of limitation of armaments which have been started under the auspices of the League of Nations. We have a considerable cruiser tonnage, but a part of it is obsolete. Everyone knew that had a three-power agreement been reached it would have left us with the necessity of continuing our building program. The failure to agree should not because us to build either more or less than we otherwise should. Any future treaty of limitation will call on us for more ships. We should enter on no competition. We should refrain from no needful program. It should be made clear to all the world that lacking a definite agreement, the attitude of any other country is not to be permitted to alter our own policy. It should especially be demonstrated that propaganda will not because us to change our course. Where there is no treaty limitation, the size of the Navy which America is to have will be solely for America to determine. No outside influence should enlarge it or diminish it. But it should be known to all that our military power holds no threat of aggrandizement. It is a guaranty of peace and security at home, and when it goes abroad it is an instrument for the protection of the legal rights of our citizens under international law, a refuge in time of disorder, and always the servant of world peace. Wherever our flag goes the rights of humanity increase. The United States Government fleet is transporting a large amount of freight and reducing its drain on the Treasury. The Shipping Board is constantly under pressure, to which it too often yields, to protect private interests, rather than serve the public welfare. More attention should be given to merchant ships as an auxiliary of the Navy. The possibility of including their masters and crews in the Naval Reserve, with some reasonable compensation, should be thoroughly explored as a method of encouraging private operation of shipping. Public operation is not a success. No investigation, of which I have caused several to be made, has failed to report that it could not succeed or to recommend speedy transfer to private ownership. Our exporters and importers are both indifferent about using American ships. It should be our policy to keep our present vessels in repair and dispose of them as rapidly as possible, rather than undertake any new construction. Their operation is a burden on the National Treasury, for which we are not receiving sufficient benefits. A rapid growth is taking place in aeronautics. The Department of Commerce has charge of the inspection and licensing system and the construction of national airways. Almost 8,000 miles are already completed and about 4,000 miles more contemplated. Nearly 4,400 miles are now equipped and over 3,000 miles more will have lighting and emergency landing fields by next July. Air mail contracts are expected to cover 24 of these lines. Daily airway flying is nearly 15,000 miles and is expected to reach 25,000 miles early next year. Flights for other purposes exceed 22,000 miles each day. Over 900 airports, completed and uncompleted, have been laid out. The demand for aircraft has greatly increased. The policy already adopted by the Congress is producing the sound development of this coming industry. Private enterprise is showing much interest in opening up aviation service to Mexico and Central and South America. We are particularly solicitous to have the United States take a leading part in this development. It is understood that the governments of our sister countries would be willing to cooperate. Their physical features, the undeveloped state of their transportation, make an air service especially adaptable to their usage. The Post Office Department should be granted power to make liberal long-term contracts for carrying our mail, and authority should be given to the Army and the Navy to detail aviators and planes to cooperate with private enterprise in establishing such mail service with the consent of the countries concerned. A committee of the Cabinet will later present a report on this subject. The importance and benefit of good roads is more and more coming to be appreciated. The National Government has been making liberal contributions to encourage their construction. The results and benefits have been very gratifying. National participation, however, should be confined to trunk-line systems. The national tax on automobiles is now nearly sufficient to meet this outlay. This tax is very small, and on low-priced cars is not more than $2 or $3 each year. While the advantage of having good roads is very large, the desire for improved highways is not limited to our own country. It should and does include all the Western Hemisphere. The principal points in Canada are already accessible. We ought to lend our encouragement in any way we can for more good roads to all the principal points in this hemisphere south of the Rio Grande. It has been our practice to supply these countries with military and naval advisers, when they have requested it, to assist them in national defense. The arts of peace are even more important to them and to us. Authority should be given by law to provide them at their request with engineering advisers for the construction of roads and bridges. In some of these countries already wonderful progress is being made in road building, but the engineering features are often very exacting and the financing difficult. Private interests should look with favor on all reasonable loans sought by these countries to open such main lines of travel. This general subject has been promoted by the Pan American Congress of Highways, which will convene again at Rio de Janeiro in July, 1928. It is desirable that the Congress should provide for the appointment of delegates to represent the Government of the United States. We have a temporary parcel-post convention with Cuba. The advantage of it is all on our side. During 1926 we shipped twelve times as many parcels, weighing twenty-four times as much, as we received. This convention was made on the understanding that we would repeal an old law prohibiting the importation of cigars and cigarettes in quantities less than 3,000 enacted in 1866 to discourage smuggling, for which it has long been unnecessary. This law unjustly discriminates against an important industry of Cuba. Its repeal has been recommended by the Treasury and Post Office Departments. Unless this is done our merchants and railroads will find themselves deprived of this large parcel-post business after the 1st of next March, the date of the expiration of the convention, which has been extended upon the specific understanding that it would expire at that time unless this legislation was enacted. We purchase large quantities of tobacco made in Cuba. It is not probable that our purchases would be any larger if this law was repealed, while it would be an advantage to many other industries in the United States. Conditions in the Philippine Islands have been steadily improved. Contentment and good order prevail. Roads, irrigation works, harbor improvements, and public buildings are being constructed. Public education and sanitation have been advanced. The Government is in a sound financial condition. These immediate results were especially due to the administration of Gov. Gen. Leonard Wood. The six years of his governorship marked a distinct improvement in the islands and rank as one of the outstanding accomplishments of this distinguished man. His death is a loss to the Nation and the islands. Greater progress could be made, more efficiency could be put. into administration, if the Congress would undertake to expend, through its appropriating power, all or a part of the customs revenues which are now turned over to the Philippine treasury. The powers of the auditor of the islands also need revision and clarification. The government of the islands is about 98 per cent in the hands of the Filipinos. An extension of the policy of self-government will be hastened by the demonstration on their part of their desire and their ability to carry out cordially and efficiently the provisions of the organic law enacted by the Congress for the government of the islands. It would be well for a committee of the Congress to visit the islands every two years. A fair degree of progress is being made in Porto Rico. Its agricultural products are increasing; its treasury position, which has given much concern, shows improvement. I am advised by the governor that educational facilities are still lacking. Roads are being constructed, which he represents are the first requisite for building schoolhouses. The loyalty of the island to the United States is exceedingly gratifying. A memorial will be presented to you requesting authority to have the governor elected by the people of Porto Rico. This was never done in the case of our own Territories. It is admitted that education outside of the towns is as yet very deficient. Until it has progressed further the efficiency of the government and the happiness of the people may need the guiding hand of an appointed governor. As it is not contemplated that any change should be made immediately, the general subject may well have the thoughtful study of the Congress. The number of commercial ships passing through the Panama Canal has increased from 3,967 in 1923 to 5,475 in 1927. The total amount of tolls turned into the Treasury is over $166,000,000, while all the operations of the canal have yielded a surplus of about $80,000,000. In order to provide additional storage of water and give some control over the floods of the Chagres River, it is proposed to erect a dam to cost about $12,000,000 at Alhajuela. It will take some five years to complete this work. The past year has seen a marked improvement in the general condition of agriculture. Production is better balanced and without acute shortage or heavy surplus. Costs have been reduced and the average output of the worker increased. The level of farm prices has risen while others have fallen, so that the purchasing power of the farmer is approaching a normal figure. The individual farmer is entitled to great credit for the progress made since 1921. He has adjusted his production and through cooperative organizations and other methods improved his marketing. He is using authenticated facts and employing sound methods which other industries are obliged to use to secure stability and prosperity. The old-fashioned haphazard system is being abandoned, economics are being applied to ascertain the best adapted unit of land, diversification is being promoted, and scientific methods are being used in production, and business principles in marketing. Agriculture has not fully recovered from postwar depression. The fact is that economic progress never marches forward in a straight line. It goes in waves. One part goes ahead, while another halts and another recedes. Everybody wishes agriculture to prosper. Any sound and workable proposal to help the farmer will have the earnest support of the Government. Their interests are not all identical. Legislation should assist as many producers in as many regions as possible. It should be the aim to assist the farmer to work out his own salvation socially and economically. No plan will be of any permanent value to him which does not leave him standing on his own foundation. In the past the Government has spent vast sums to bring land under cultivation. lt. is apparent that this has reached temporarily the saturation point. We have had a surplus of production and a poor market for land, which has only lately shown signs of improvement. The main problem which is presented for solution is one of dealing with a surplus of production. It is useless to propose a temporary expedient. What is needed is permanency and stability. Government price fixing is known to be unsound and bound to result in disaster. A Government subsidy would work out in the same way. It can not be sound for all of the people to hire some of the people to produce a crop which neither the producers nor the rest of the people want. Price fixing and subsidy will both increase the surplus, instead of diminishing it. Putting the Government directly into business is merely a combination of subsidy and price fixing aggravated by political pressure. These expedients would lead logically to telling the farmer by law what and how much he should plant and where he should plant it, and what and how much he should sell and where he should sell it. The most effective means of dealing with surplus crops is to reduce the surplus acreage. While this can not be done by the individual farmer, it can be done through the organizations already in existence, through the information published by the Department of Agriculture, and especially through banks and others who supply credit refusing to finance an acreage manifestly too large. It is impossible to provide by law for an assured success and prosperity for all those who engage in farming. If acreage becomes overextended, the Government can not assume responsibility for it. The Government can, however, assist cooperative associations and other organizations in orderly marketing and handling a surplus clearly due to weather and seasonal conditions, in order to save the producer from preventable loss. While it is probably impossible to secure this result at a single step, and much will have to be worked out by trial and rejection, a beginning could be made by setting up a Federal board or commission of able and experienced men in marketing, granting equal advantages under this board to the various agricultural commodities and sections of the country, giving encouragement to the cooperative movement in agriculture, and providing a revolving loan fund at a moderate rate of interest for the necessary financing. Such legislation would lay the foundation for a permanent solution of the surplus problem. This is not a proposal to lend more money to the farmer, who is already fairly well financed, but to lend money temporarily to experimental marketing associations which will no doubt ultimately be financed by the regularly established banks, as were the temporary operations of the War Finance Corporation. Cooperative marketing especially would be provided with means of buying or building physical properties. The National Government has almost entirely relieved the farmer from income taxes by successive tax reductions, but State and local taxes have increased, putting on him a grievous burden. A policy of rigid economy should be applied to State and local expenditures. This is clearly within the legislative domain of the States. The Federal Government has also improved our banking structure and system of agricultural credits. The farmer will be greatly benefited by similar action in many States. The Department of Agriculture is undergoing changes in organization in order more completely to separate the research and regulatory divisions, that each may be better administered. More emphasis is being placed on the research program, not only by enlarging the appropriations for State experiment stations but by providing funds for expanding the research work of the department. It is in this direction that much future progress can be expected. The present tariff rates supply the National Treasury with well over $600,000,000 of annual revenue. Yet, about 65 per cent of our imports come in duty free. Of the remaining 35 per cent of imports on which duties are laid about 23 per cent consists of luxuries and agricultural products, and the balance of about 12 per cent, amounting, to around $560,000,000 is made up of manufactures and merchandise. As no one is advocating any material reduction in the rates on agriculture or luxuries, it is only the comparatively small amount of about $560,000,000 of other imports that are really considered in any discussion of reducing tariff rates. While this amount, duty free, would be large enough seriously to depress many lines of business in our own country, it is of small importance when spread over the rest of the world. It is often stated that a reduction of tariff rates on industry would benefit agriculture. It would be interesting to know to what commodities it is thought this could be applied. Everything the farmer uses in farming is already on the free list. Nearly everything he sells is protected. It would seem to be obvious that it is better for tile country to have the farmer raise food to supply the domestic manufacturer than the foreign manufacturer. In one case our country would have only the farmer; in the other it would have the farmer and the manufacturer. Assuming that Europe would have more money if it sold us larger amounts of merchandise, it is not certain it would consume more food, or, if it did, that its purchases would be made in this country. Undoubtedly it would resort to the cheapest market, which is by no means ours. The largest and best and most profitable market for the farmer in the world is our own domestic market. Any great increase in manufactured imports means the closing of our own plants. Nothing would be worse for agriculture. Probably no one expects a material reduction in the rates on manufactures while maintaining the rates on agriculture. A material reduction in either would be disastrous to tile farmer. It would mean a general shrinkage of values, a deflation of prices, a reduction of wages, a general depression carrying our people down to the low standard of living in our competing countries. It is obvious that this would not improve but destroy our market for imports, which is best served by maintaining our present high purchasing power under which in the past five years imports have increased 63 per cent. It is exceedingly important that the Federal land and joint-stock land banks should furnish the best possible service for agriculture. Certain joint-stock banks have fallen into improper and unsound practices, resulting in the indictment of the officials of three of them. More money has been provided for examinations, and at the instance of the Treasury rules and regulations of the Federal Farm Board have been revised. Early last May three of its members resigned. Their places were filled with men connected with the War Finance Corporation. Eugene Meyer being designated as Farm Loan Commissioner. The new members have demonstrated their ability in the field of agricultural finance in the extensive operations of he War Finance Corporation. Three joint-stock banks have gone into receivership. It is necessary to preserve the public confidence in this system in order to find a market for their bonds. A recent flotation was made at a record low rate of 4 per cent. Careful supervision is absolutely necessary to protect the investor and enable these banks to exercise their chief function in serving agriculture. The last year has seen considerable changes in the problem of Muscle Shoals. Development of other methods show that nitrates can probably be produced at less cost than by the use of hydroelectric power. Extensive investigation made by the Department of War indicates that the nitrate plants on this project are of little value for national defense and can probably be disposed of within two years. The oxidation part of the plants, however, should be retained indefinitely. This leaves this project mostly concerned with power. It should, nevertheless, continue to be dedicated to agriculture. It is probable that this desire can be best served by disposing of the plant and applying the revenues received from it to research for methods of more economical production of concentrated fertilizer and to demonstrations and other methods of stimulating its use on the farm. But in disposing of the property preference should be given to proposals to use all or part of it for nitrate production and fertilizer manufacturing. For many years the Federal Government has been building a system of dikes along the Mississippi River for protection against high water. During the past season the lower States were overcome by a most disastrous flood. Many thousands of square miles were inundated a great many lives were lost, much livestock was drowned, and a very heavy destruction of property was inflicted upon the inhabitants. The American Red Cross at once went to the relief of the stricken communities. Appeals for contributions have brought in over $17,000,000. The Federal Government has provided services, equipment, and supplies probably amounting to about $7,000,000 more. Between $5,000,000 and $10,000,000 in addition have been provided by local railroads, the States, and their political units. Credits have been arranged by the Farm Loan Board, and three emergency finance corporations with a total capital of $3,000,000 have insured additional resources to the extent of $12,000,000. Through these means the 700,000 people in the flooded areas have been adequately supported. Provision has been made to care for those in need until after the 1st of January. The Engineering Corps of the Army has contracted to close all breaks in the dike system before the next season of high water. A most thorough and elaborate survey of the whole situation has been made and embodied in a report with recommendations for future flood control, which will be presented to the Congress. The carrying out of their plans will necessarily extend over a series of years. They will call for a raising and strengthening of the dike system with provision for emergency spillway's and improvements for the benefit of navigation. Under the present law the land adjacent to the dikes has paid one-third of the cost of their construction. This has been a most extraordinary concession from the plan adopted in relation to irrigation, where the general rule has been that the land benefited should bear the entire expense. It is true, of course, that the troublesome waters do not originate on the land to be reclaimed, but it is also true that such waters have a right of way through that section of the country and the land there is charged with that easement. It is the land of this region that is to be benefited. To say that it is unable to bear any expense of reclamation is the same thing as saying that it is not worth reclaiming. Because of expenses incurred and charges already held against this land, it seems probable that some revision will have to be made concerning the proportion of cost which it should bear. But it is extremely important that it should pay enough so that those requesting improvements will be charged with some responsibility for their cost, and the neighborhood where works are constructed have a pecuniary interest in preventing waste and extravagance and securing a wise and economical expenditure of public funds. It is necessary to look upon this emergency as a national disaster. It has been so treated from its inception. Our whole people have provided with great generosity for its relief. Most of the departments of the Federal Government have been engaged in the same effort. The governments of the afflicted areas, both State and municipal, can not be given too high praise for the courageous and helpful way in which they have come to the rescue of the people. If the sources directly chargeable can not meet the demand, the National Government should not fail to provide generous relief. This, however, does not mean restoration. The Government is not an insurer of its citizens against the hazard of the elements. We shall always have flood and drought, heat and cold, earthquake and wind, lightning and tidal wave, which are all too constant in their afflictions. The Government does not undertake to reimburse its citizens for loss and damage incurred under such circumstances. It is chargeable, however, with the rebuilding of public works and the humanitarian duty of relieving its citizens from distress. The people in the flooded area and their representatives have approached this problem in the most generous and broad-minded way. They should be met with a like spirit on the part of the National government. This is all one country. The public needs of each part must be provided for by the public at large. No required relief should be refused. An adequate plan should be adopted to prevent a recurrence of this disaster in order that the people may restore to productivity and comfort their fields and their towns. Legislation by this Congress should be confined to our principal and most pressing problem, the lower Mississippi, considering tributaries only so far as they materially affect the main flood problem. A definite Federal program relating to our waterways was proposed when the last Congress authorized a comprehensive survey of all the important streams of the country in order to provide for their improvement, including flood control, navigation, power, and irrigation. Other legislation should wait pending a report on this survey. The recognized needs of the Mississippi should not be made a vehicle for carrying other projects. All proposals for development should stand on their own merits. Any other method would result in ill-advised conclusions, great waste of money, and instead of promoting would delay the orderly and certain utilization of our water resources. Very recently several of the New England States have suffered somewhat similarly from heavy rainfall and high water. No reliable estimate of damage has yet been computed, but it is very large to private and public property. The Red Cross is generously undertaking what is needed for immediate relief, repair and reconstruction of houses, restocking of domestic animals, and food, clothing, and shelter. A considerable sum of money will be available through the regular channels in the Department of Agriculture for reconstruction of highways. It may be necessary to grant special aid for this purpose. Complete reports of what is required will undoubtedly be available early in the session. The Congress in its last session authorized the general improvements necessary to provide the Mississippi waterway system with better transportation. Stabilization of the levels of the Great Lakes and their opening to the sea by an effective shipway remain to be considered. Since the last session the Board of Engineers of the War Department has made a report on the proposal for a canal through the State of New York, and the Joint Board of Engineers, representing Canada and the United States, has finished a report on the St. Lawrence River. Both of these boards conclude that the St. Lawrence project is cheaper, affords a more expeditious method of placing western products in European markets, and will cost less to operate. The State Department has requested the Canadian Government to negotiate treaties necessary to provide for this improvement. It will also be necessary to secure an agreement with Canada to put in works necessary to prevent fluctuation in the levels of the Great Lakes. Legislation is desirable for the construction of a dam at Boulder Canyon on the Colorado River, primarily as a method of flood control and irrigation. A secondary result would be a considerable power development and a source of domestic water supply for southern California. Flood control is clearly a national problem, and water supply is a Government problem, but every other possibility should be exhausted before the Federal Government becomes engaged in the power business. The States which are interested ought to reach mutual agreement. This project is in reality their work. If they wish the Federal Government to undertake it, they should not hesitate to make the necessary concessions to each other. This subject is fully discussed in the annual report of the Secretary of the Interior. The Columbia River Basin project is being studied and will be one to be considered at some future time. The Inland Waterways Corporation is proving successful and especially beneficial to agriculture. A survey is being made to determine its future needs. It has never been contemplated that if inland rivers were opened to navigation it would then be necessary for the Federal Government to provide the navigation. Such a request is very nearly the equivalent of a declaration that their navigation is not profitable, that the commodities which they are to carry can be taken at a cheaper rate by some other method, in which case the hundreds of millions of dollars proposed to be expended for opening rivers to navigation would be not only wasted, but would entail further constant expenditures to carry the commodities of private persons for less than cost. The policy is well established that the Government should open public highways on land and on water, but for use of the public in their private capacity. It has put on some demonstration barge lines, but always with the expectation that if they prove profitable they would pass into private hands and if they do not prove profitable they will be withdrawn. The problems of transportation over inland waterways should be taken up by private enterprise, so that the public will have the advantage of competition in service. It is expected that some of our lines can be sold, some more demonstration work done, and that with the completion of the Ohio project a policy of private operation can be fully developed. After more than two generations of constant debate, our country adopted a system of national prohibition under all the solemnities involved in an amendment to the Federal Constitution. In obedience to this mandate the Congress and the States, with one or two notable exceptions, have passed required laws for its administration and enforcement. This imposes upon the citizenship of the country, and especially on all public officers, not only the duty to enforce, but the obligation to observe the sanctions of this constitutional provision and its resulting laws. If this condition could be secured, all question concerning prohibition would cease. The Federal Government is making every effort to accomplish these results through careful organization, large appropriations, and administrative effort. Smuggling has been greatly cut down, the larger sources of supply for illegal sale have been checked, and by means of injunction and criminal prosecution the process of enforcement is being applied. The same vigilance on the part of local governments would render these efforts much more successful. The Federal authorities propose to discharge their obligation for enforcement to the full extent of their ability. History does not anywhere record so much progress made in the same length of time as that which has been accomplished by the Negro race in the United States since the Emancipation Proclamation. They have come up from slavery to be prominent in education, the professions, art, science, agriculture, banking, and commerce. It is estimated that 50,000 of them are on the Government pay rolls, drawing about $50,000,000 each year. They have been the recipients of presidential appointments and their professional ability has arisen to a sufficiently high plane so that they have been intrusted with the entire management and control of the great veterans hospital at Tuskegee, where their conduct has taken high rank. They have shown that they have been worthy of all the encouragement which they have received. Nevertheless, they are too often subjected to thoughtless and inconsiderate treatment, unworthy alike of the white or colored races. They have especially been made the target of the foul crime of lynching. For several years these acts of unlawful violence had been diminishing. In the last year they have shown an increase. Every principle of order and law and liberty is opposed to this crime. The Congress should enact any legislation it can under the Constitution to provide for its elimination. The condition of the American Indian has much improved in recent years. Full citizenship was bestowed upon them on June 2, 1924, and appropriations for their care and advancement have been increased. Still there remains much to be done. Notable increases in appropriations for the several major functions performed by the Department of the Interior on behalf of the Indians have marked the last five years. In that time, successive annual increases in appropriations for their education total $1,804,325; for medical care, $578,000; and for industrial advancement, $205,000; or $2,582,325 more than would have been spent in the same period on the basis of appropriations for 1923 and the preceding years. The needs along health, educational, industrial and social lines however, are great, and the Budget estimates for 1929 include still further increases for Indian administration. To advance the time when the Indians may become self-sustaining, it is my belief that the Federal Government should continue to improve the facilities for their care, and as rapidly as possible turn its responsibility over to the States. Legislation authorizing a system of fuel administration and the appointment by the President of a Board of Mediation and Conciliation in case of actual or threatened interruption of production is needed. The miners themselves are now seeking information and action from the Government, which could readily be secured through such a board. It is believed that a thorough investigation and reconsideration of this proposed policy by the Congress will demonstrate that this recommendation is sound and should be adopted. The National Government is undertaking to join in the formation of a cooperative committee of lawyers, engineers, and public officers, to consider what legislation by the States or by the Congress can be adopted for the preservation and conservation of our supply of petroleum. This has come to be one of the main dependencies for transportation and power so necessary to our agricultural and industrial life. It is expected the report of this committee will be available for later congressional action. Meantime, the requirement that the Secretary of the Interior should make certain leases of land belonging to the Osage Indians, in accordance with the act of March 3, 1921, should be repealed. The authority to lease should be discretionary, in order that the property of the Indians way not be wasted and the public suffer a future lack of supply. Under treaty the property held by the Alien Property Custodian was to be retained until suitable provision had been made for the satisfaction of American claims. While still protecting the American claimants, in order to afford every possible accommodation to the nationals of the countries whose property was held, the Congress has made liberal provision for the return of a larger part of the property. All trusts under $10,000 were returned in full, and partial returns were made on the others. The total returned was approximately $350,000,000. There is still retained, however, about $250,000,000. The Mixed Claims Commission has made such progress in the adjudication of claims that legislation can now be enacted providing for the return of the property, which should be done under conditions which will protect our Government and our claimants. Such a measure will be proposed, and I recommend its enactment. In order to increase the efficiency of transportation and decrease its cost to the shipper, railroad consolidation must be secured. Legislation is needed to simplify the necessary procedure to secure such agreements and arrangements for consolidation, always under the control and with the approval of the Interstate Commerce Commission. Pending this, no adequate or permanent reorganization can be made of the freight-rate structure. Meantime, both agriculture and industry are compelled to wait for needed relief. This is purely a business question, which should be stripped of all local and partisan bias and decided on broad principles and its merits in order to promote the public welfare. A large amount of new construction and equipment, which will furnish employment for labor and markets for commodities of both factory and farm, wait on the decision of this important question. Delay is holding back the progress of our country. Many of the same arguments are applicable to the consolidation of the Washington traction companies. The care which this country has lavished on its veterans is known of all men. The yearly outlay for this purpose is about $750,000,000, or about the cost of running the Federal Government, outside of the Post Office Department, before the World War. The Congress will have before it recommendations of the American Legion, the Veterans of Foreign Wars, and other like organizations, which should receive candid consideration. We should continue to foster our system of compensation and rehabilitation, and provide hospitals and insurance. The magnitude of the undertaking is already so large that all requests calling for further expenditure should have the most searching scrutiny. Our present system of pensions is already sufficiently liberal. It was increased by the last Congress for Civil and Spanish War veterans and widows and for some dependents. It has been suggested that the various governmental agencies now dealing with veterans' relief be consolidated. This would bring many advantages. It is recommended that the proper committees of the Congress make a thorough survey of this subject, in order to determine if legislation to secure such consolidation is desirable. For many years it has been the policy of the Federal Government to encourage and foster the because of education. Large sums of money are annually appropriated to carry on vocational training. Many millions go into agricultural schools. The general subject is under the immediate direction of a Commissioner of Education. While this subject is strictly a State and local function, it should continue to have the encouragement of the National Government. I am still of the opinion that much good could be accomplished through the establishment of a Department of Education and Relief, into which would be gathered all of these functions under one directing member of the Cabinet. Industrial relations have never been more peaceful. In recent months they have suffered from only one serious controversy. In all others difficulties have been adjusted, both management and labor wishing to settle controversies by friendly agreement rather than by compulsion. The welfare of women and children is being especially guarded by our Department of Labor. Its Children's Bureau is in cooperation with 26 State boards and 80 juvenile courts. Through its Bureau of Immigration it bas been found that medical examination abroad has saved prospective immigrants from much hardship. Some further legislation to provide for reuniting families when either the husband or the wife is in this country, and granting more freedom for the migration of the North American Indian tribes is desirable. The United States Employment Service has enabled about 2,000,000 men and women to gain paying positions in the last fiscal year. Particular attention has been given to assisting men past middle life and in providing field labor for harvesting agricultural crops. This has been made possible in part through the service of the Federal Board for Vocational Education, which is cooperating with the States in a program to increase the technical knowledge and skill of the wage earner. Construction is under way in the country and ground has been broken for carrying out a public-building program for Washington. We have reached a time when not only the conveniences but the architectural beauty of the public buildings of the Capital City should be given much attention. It will be necessary to purchase further land and provide the required continuing appropriations. Provision is being made to commemorate the two hundredth anniversary of the birth of George Washington. Suggestion has been made for the construction of a memorial road leading from the Capital to Mount Vernon, which may well have the consideration of the Congress, and the commission intrusted with preparations for the celebration will undoubtedly recommend publication of the complete writings of Washington and a series of writings by different authors relating to him. February 25, 1929. is the one hundred and fiftieth anniversary of the capture of Fort Sackville, at Vincennes, in the State of Indiana. This eventually brought into the Union what was known as the Northwest Territory, embracing the region north of the Ohio River between the Alleghenies and the Mississippi River. This expedition was led by George Rogers Clark. His heroic character and the importance of his victory are too little known and understood. They gave us not only this Northwest Territory but by means of that the prospect of reaching the Pacific. The State of Indiana is proposing to dedicate the site of Fort Sackville as a national shrine. The Federal Government may well make some provision for the erection under its own management of a fitting memorial at that point. It is the policy of the United States to promote peace. We are a peaceful people and committed to the settling of disputes by amicable adjustment rather than by force. We have believed that peace can best be secured by a faithful observance on our part of the principles of international law, accompanied by patience and conciliation, and requiring of others a like treatment for ourselves. We have lately had some difference with Mexico relative to the injuries inflicted upon our nationals and their property within that country. A firm adherence to our rights and a scrupulous respect for the sovereignty of Mexico, both in accordance with the law of nations, coupled with patience and forbearance, it is hoped will resolve all our differences without interfering with the friendly relationship between the two Governments. We have been compelled to send naval and marine forces to China to protect the lives and property of our citizens. Fortunately their simple presence there has been sufficient to prevent any material loss of life. But there has been considerable loss of property. That unhappy country is torn by factions and revolutions which bid fair to last for an indefinite period. Meanwhile we are protecting our citizens and stand ready to cooperate with any government which may emerge in promoting the welfare of the people of China. They have always had our friendship, and they should especially merit our consideration in these days of their distraction and distress. We were confronted by similar condition on a small scale in Nicaragua. Our marine and naval forces protected our citizens and their property and prevented a heavy sacrifice of life and the destruction of that country by a reversion to a state of revolution. Henry L. Stimson, former Secretary of War, was sent there to cooperate with our diplomatic and military officers in effecting a settlement between the contending parties. This was done on the assurance that we would cooperate in restoring a state of peace where our rights would be protected by giving our assistance in the conduct of the next presidential election, which occurs in a few months. With this assurance the population returned to their peacetime pursuits, with the exception of some small roving bands of outlaws. In general, our relations with other countries can be said to have improved within the year. While having a due regard for our own affairs, the protection of our own rights, and the advancement of our own people, we can afford to be liberal toward others. Our example has become of great importance in the world. It is recognized that we are independent, detached, and can and do take a disinterested position in relation to international affairs. Our charity embraces the earth. Our trade is far flung. Our financial favors are widespread. Those who are peaceful and law-abiding realize that not only have they nothing to fear from us, but that they can rely on our moral support. Proposals for promoting the peace of the world will have careful consideration. But we are not a people who are always seeking for a sign. We know that peace comes from honesty and fair dealing, from moderation, and a generous regard for the rights of others. The heart of the Nation is more important than treaties. A spirit of generous consideration is a more certain defense than great armaments. We should continue to promote peace by our example, and fortify it by such international covenants against war as we are permitted under our Constitution to make. Our country has made much progress. But it has taken, and will continue to take, much effort. Competition will be keen, the temptation to selfishness and arrogance will be severe, the provocations to deal harshly with weaker peoples will be many. All of these are embraced in the opportunity for true greatness. They will be overbalanced by cooperation by generosity, and a spirit of neighborly kindness. The forces of the universe are taking humanity in that direction. In doing good, in walking humbly, in sustaining its own people in ministering to other nations, America will work out its own mighty destiny.
it is gratifying to report that for the fourth consecutive year the state of the union in general is good we are at peace the country as a whole has had a prosperity never exceeded wages are at their highest range employment is plentiful some parts of agriculture and industry have lagged some localities have suffered from storm and flood but such losses have been absorbed without serious detriment to our great economic structure stocks of goods are moderate and a wholesome caution is prevalent rates of interest for industry agriculture and government have been reduced savers and investors are providing capital for new construction in industry and public works the purchasing power of agriculture has increased if the people maintain that confidence which they are entitled to have in themselves in each other and in america a comfortable prosperity will continue without constructive economy in government expenditures we should not now be enjoying these results or these prospects because we are not now physically at war some people are disposed to forget that our war debt still remains the nation must make financial sacrifices accompanied by a stern in public expenditures until we have conquered the disabilities of our public finance while our obligation to veterans and dependents is large and continuing the heavier burden of the national debt is being steadily eliminated at the end of this fiscal year it will be reduced from about to about annual interest including war savings will have been reduced from to the sacrifices of the people the economy of the government are showing remarkable results they should be continued for the purpose of relieving the nation of the burden of interest and debt and releasing revenue for internal improvements and national development not only the amount but the rate of government interest has been reduced callable bonds have been refunded and paid so that during this year the average rate of interest on the present public debt for the first time fell below 4 per cent keeping the credit of the nation high is a tremendously profitable operation the immediate fruit of economy and the retirement of the public debt is tax reduction the annual saving in interest between 1925 and 1929 is without this no bill to relieve the taxpayers would be worth proposing the three measures already enacted leave our government revenues where they are not oppressive exemptions have been increased until people make but individual taxable returns so that further reduction should be mainly for the purpose of removing inequalities the secretary of the treasury has recommended a measure which would give us a much better balanced system of taxation and without oppression produce sufficient revenue it has my complete support unforeseen contingencies requiring money are always arising our probable surplus for june 30 1929 is small a slight depression in business would greatly reduce our revenue because of our present method of taxation the people ought to take no selfish attitude of pressing for removing moderate and fair taxes which might produce a deficit we must keep our budget balanced for each year that is the corner stone of our national credit the trifling price we pay to command the lowest rate of interest of any great power in the world any surplus can be applied to debt reduction and debt reduction is tax reduction under the present circumstances it would be far better to leave the rates as they are than to enact a bill carrying the peril of a deficit this is not a problem to be approached in a narrow or partisan spirit all of those who participate in finding a reasonable solution will be entitled to participate in any credit that accrues from it without regard to party the congress has already demonstrated that tax legislation can be removed from purely political consideration into the realm of patriotic business principles any bill for tax reduction should be written by those who are responsible for raising managing and expending the finances of the government if special interests too often selfish always uninformed of the national needs as a whole with hired agents using their proposed beneficiaries as engines of propaganda are permitted to influence the withdrawal of their property from taxation we shall have a law that is unbalanced and unjust bad for business bad for the country probably resulting in a deficit with disastrous financial consequences the constitution has given the members of the congress sole authority to decide what tax measures shall be presented for approval while welcoming information from any quarter the congress should continue to exercise its own judgment in a matter so vital and important to all the interests of the country as taxation being a nation relying not on force but on fair dealing and good will to maintain peace with others we have provided a moderate military force in a form adapted solely to defense it should be continued with a very generous supply of officers and with the present base of personnel subject to fluctuations which may be temporarily desirable the program for our air forces is in keeping with this same policy and commensurate with the notable contributions of america to the science of aeronautics the provisions of the law lately enacted are being executed as fast as the practical difficulties of an orderly and stable development permit while our army is small prudence requires that it should be kept in a high state of efficiency and provided with such supplies as would permit of its immediate expansion the garrison ration has lately been increased recommendations for an appropriation of for new housing made to the previous congress failed to pass while most of the army is well housed some of it which is quartered in wartime training camps is becoming poorly housed in the past three years have been appropriated for reconstruction and repairs and an authorization has been approved of for new housing under which has already been appropriated a law has also been passed complying with the request of the war department allocating funds received from the sale of buildings and land for housing purposes the work however is not completed so that other appropriations are being recommended our navy is likewise a weapon of defense we have a foreign commerce and ocean lines of trade unsurpassed by any other country we have outlying territory in the two great oceans and long stretches of seacoast studded with the richest cities in the world we are responsible for the protection of a large population and the greatest treasure ever bestowed upon any people we are charged with an international duty of defending the panama canal to meet these responsibilities we need a very substantial sea armament it needs aircraft development which is being provided under the program it needs submarines as soon as the department decides upon the best type of construction it needs airplane carriers and a material addition to its force of cruisers we can plan for the future and begin a moderate building program this country has put away the old world policy of competitive armaments it can never be relieved of the responsibility of adequate national defense we have one treaty secured by an unprecedented attitude of generosity on our part for a limitation in naval armament after most careful preparation extending over months we recently made every effort to secure a treaty to the same end we were granted much cooperation by japan but we were unable to come to an agreement with great britain while the results of the conference were of considerable value they were mostly of a negative character we know now that no agreement can be reached which will be inconsistent with a considerable building program on our part we are ready and willing to continue the preparatory investigations on the general subject of limitation of armaments which have been started under the auspices of the league of nations we have a considerable cruiser tonnage but a part of it is obsolete everyone knew that had a agreement been reached it would have left us with the necessity of continuing our building program the failure to agree should not because us to build either more or less than we otherwise should any future treaty of limitation will call on us for more ships we should enter on no competition we should refrain from no needful program it should be made clear to all the world that lacking a definite agreement the attitude of any other country is not to be permitted to alter our own policy it should especially be demonstrated that propaganda will not because us to change our course where there is no treaty limitation the size of the navy which america is to have will be solely for america to determine no outside influence should enlarge it or diminish it but it should be known to all that our military power holds no threat of aggrandizement it is a guaranty of peace and security at home and when it goes abroad it is an instrument for the protection of the legal rights of our citizens under international law a refuge in time of disorder and always the servant of world peace wherever our flag goes the rights of humanity increase the united states government fleet is transporting a large amount of freight and reducing its drain on the treasury the shipping board is constantly under pressure to which it too often yields to protect private interests rather than serve the public welfare more attention should be given to merchant ships as an auxiliary of the navy the possibility of including their masters and crews in the naval reserve with some reasonable compensation should be thoroughly explored as a method of encouraging private operation of shipping public operation is not a success no investigation of which i have caused several to be made has failed to report that it could not succeed or to recommend speedy transfer to private ownership our exporters and importers are both indifferent about using american ships it should be our policy to keep our present vessels in repair and dispose of them as rapidly as possible rather than undertake any new construction their operation is a burden on the national treasury for which we are not receiving sufficient benefits a rapid growth is taking place in aeronautics the department of commerce has charge of the inspection and licensing system and the construction of national airways almost miles are already completed and about miles more contemplated nearly miles are now equipped and over miles more will have lighting and emergency landing fields by next july air mail contracts are expected to cover 24 of these lines daily airway flying is nearly miles and is expected to reach miles early next year flights for other purposes exceed miles each day over 900 airports completed and uncompleted have been laid out the demand for aircraft has greatly increased the policy already adopted by the congress is producing the sound development of this coming industry private enterprise is showing much interest in opening up aviation service to mexico and central and south america we are particularly solicitous to have the united states take a leading part in this development it is understood that the governments of our sister countries would be willing to cooperate their physical features the undeveloped state of their transportation make an air service especially adaptable to their usage the post office department should be granted power to make liberal contracts for carrying our mail and authority should be given to the army and the navy to detail aviators and planes to cooperate with private enterprise in establishing such mail service with the consent of the countries concerned a committee of the cabinet will later present a report on this subject the importance and benefit of good roads is more and more coming to be appreciated the national government has been making liberal contributions to encourage their construction the results and benefits have been very gratifying national participation however should be confined to systems the national tax on automobiles is now nearly sufficient to meet this outlay this tax is very small and on cars is not more than 2 or 3 each year while the advantage of having good roads is very large the desire for improved highways is not limited to our own country it should and does include all the western hemisphere the principal points in canada are already accessible we ought to lend our encouragement in any way we can for more good roads to all the principal points in this hemisphere south of the rio grande it has been our practice to supply these countries with military and naval advisers when they have requested it to assist them in national defense the arts of peace are even more important to them and to us authority should be given by law to provide them at their request with engineering advisers for the construction of roads and bridges in some of these countries already wonderful progress is being made in road building but the engineering features are often very exacting and the financing difficult private interests should look with favor on all reasonable loans sought by these countries to open such main lines of travel this general subject has been promoted by the pan american congress of highways which will convene again at rio de janeiro in july 1928 it is desirable that the congress should provide for the appointment of delegates to represent the government of the united states we have a temporary convention with cuba the advantage of it is all on our side during 1926 we shipped twelve times as many parcels weighing times as much as we received this convention was made on the understanding that we would repeal an old law prohibiting the importation of cigars and cigarettes in quantities less than enacted in 1866 to discourage smuggling for which it has long been unnecessary this law unjustly discriminates against an important industry of cuba its repeal has been recommended by the treasury and post office departments unless this is done our merchants and railroads will find themselves deprived of this large business after the 1st of next march the date of the expiration of the convention which has been extended upon the specific understanding that it would expire at that time unless this legislation was enacted we purchase large quantities of tobacco made in cuba it is not probable that our purchases would be any larger if this law was repealed while it would be an advantage to many other industries in the united states conditions in the philippine islands have been steadily improved contentment and good order prevail roads irrigation works harbor improvements and public buildings are being constructed public education and sanitation have been advanced the government is in a sound financial condition these immediate results were especially due to the administration of gov leonard wood the six years of his governorship marked a distinct improvement in the islands and rank as one of the outstanding accomplishments of this distinguished man his death is a loss to the nation and the islands greater progress could be made more efficiency could be put into administration if the congress would undertake to expend through its appropriating power all or a part of the customs revenues which are now turned over to the philippine treasury the powers of the auditor of the islands also need revision and clarification the government of the islands is about 98 per cent in the hands of the filipinos an extension of the policy of will be hastened by the demonstration on their part of their desire and their ability to carry out cordially and efficiently the provisions of the organic law enacted by the congress for the government of the islands it would be well for a committee of the congress to visit the islands every two years a fair degree of progress is being made in porto rico its agricultural products are increasing its treasury position which has given much concern shows improvement i am advised by the governor that educational facilities are still lacking roads are being constructed which he represents are the first requisite for building schoolhouses the loyalty of the island to the united states is exceedingly gratifying a memorial will be presented to you requesting authority to have the governor elected by the people of porto rico this was never done in the case of our own territories it is admitted that education outside of the towns is as yet very deficient until it has progressed further the efficiency of the government and the happiness of the people may need the guiding hand of an appointed governor as it is not contemplated that any change should be made immediately the general subject may well have the thoughtful study of the congress the number of commercial ships passing through the panama canal has increased from in 1923 to in 1927 the total amount of tolls turned into the treasury is over while all the operations of the canal have yielded a surplus of about in order to provide additional storage of water and give some control over the floods of the chagres river it is proposed to erect a dam to cost about at alhajuela it will take some five years to complete this work the past year has seen a marked improvement in the general condition of agriculture production is better balanced and without acute shortage or heavy surplus costs have been reduced and the average output of the worker increased the level of farm prices has risen while others have fallen so that the purchasing power of the farmer is approaching a normal figure the individual farmer is entitled to great credit for the progress made since 1921 he has adjusted his production and through cooperative organizations and other methods improved his marketing he is using authenticated facts and employing sound methods which other industries are obliged to use to secure stability and prosperity the haphazard system is being abandoned economics are being applied to ascertain the best adapted unit of land diversification is being promoted and scientific methods are being used in production and business principles in marketing agriculture has not fully recovered from postwar depression the fact is that economic progress never marches forward in a straight line it goes in waves one part goes ahead while another halts and another recedes everybody wishes agriculture to prosper any sound and workable proposal to help the farmer will have the earnest support of the government their interests are not all identical legislation should assist as many producers in as many regions as possible it should be the aim to assist the farmer to work out his own salvation socially and economically no plan will be of any permanent value to him which does not leave him standing on his own foundation in the past the government has spent vast sums to bring land under cultivation is apparent that this has reached temporarily the saturation point we have had a surplus of production and a poor market for land which has only lately shown signs of improvement the main problem which is presented for solution is one of dealing with a surplus of production it is useless to propose a temporary expedient what is needed is permanency and stability government price fixing is known to be unsound and bound to result in disaster a government subsidy would work out in the same way it can not be sound for all of the people to hire some of the people to produce a crop which neither the producers nor the rest of the people want price fixing and subsidy will both increase the surplus instead of diminishing it putting the government directly into business is merely a combination of subsidy and price fixing aggravated by political pressure these expedients would lead logically to telling the farmer by law what and how much he should plant and where he should plant it and what and how much he should sell and where he should sell it the most effective means of dealing with surplus crops is to reduce the surplus acreage while this can not be done by the individual farmer it can be done through the organizations already in existence through the information published by the department of agriculture and especially through banks and others who supply credit refusing to finance an acreage manifestly too large it is impossible to provide by law for an assured success and prosperity for all those who engage in farming if acreage becomes overextended the government can not assume responsibility for it the government can however assist cooperative associations and other organizations in orderly marketing and handling a surplus clearly due to weather and seasonal conditions in order to save the producer from preventable loss while it is probably impossible to secure this result at a single step and much will have to be worked out by trial and rejection a beginning could be made by setting up a federal board or commission of able and experienced men in marketing granting equal advantages under this board to the various agricultural commodities and sections of the country giving encouragement to the cooperative movement in agriculture and providing a revolving loan fund at a moderate rate of interest for the necessary financing such legislation would lay the foundation for a permanent solution of the surplus problem this is not a proposal to lend more money to the farmer who is already fairly well financed but to lend money temporarily to experimental marketing associations which will no doubt ultimately be financed by the regularly established banks as were the temporary operations of the war finance corporation cooperative marketing especially would be provided with means of buying or building physical properties the national government has almost entirely relieved the farmer from income taxes by successive tax reductions but state and local taxes have increased putting on him a grievous burden a policy of rigid economy should be applied to state and local expenditures this is clearly within the legislative domain of the states the federal government has also improved our banking structure and system of agricultural credits the farmer will be greatly benefited by similar action in many states the department of agriculture is undergoing changes in organization in order more completely to separate the research and regulatory divisions that each may be better administered more emphasis is being placed on the research program not only by enlarging the appropriations for state experiment stations but by providing funds for expanding the research work of the department it is in this direction that much future progress can be expected the present tariff rates supply the national treasury with well over of annual revenue yet about 65 per cent of our imports come in duty free of the remaining 35 per cent of imports on which duties are laid about 23 per cent consists of luxuries and agricultural products and the balance of about 12 per cent amounting to around is made up of manufactures and merchandise as no one is advocating any material reduction in the rates on agriculture or luxuries it is only the comparatively small amount of about of other imports that are really considered in any discussion of reducing tariff rates while this amount duty free would be large enough seriously to depress many lines of business in our own country it is of small importance when spread over the rest of the world it is often stated that a reduction of tariff rates on industry would benefit agriculture it would be interesting to know to what commodities it is thought this could be applied everything the farmer uses in farming is already on the free list nearly everything he sells is protected it would seem to be obvious that it is better for tile country to have the farmer raise food to supply the domestic manufacturer than the foreign manufacturer in one case our country would have only the farmer in the other it would have the farmer and the manufacturer assuming that europe would have more money if it sold us larger amounts of merchandise it is not certain it would consume more food or if it did that its purchases would be made in this country undoubtedly it would resort to the cheapest market which is by no means ours the largest and best and most profitable market for the farmer in the world is our own domestic market any great increase in manufactured imports means the closing of our own plants nothing would be worse for agriculture probably no one expects a material reduction in the rates on manufactures while maintaining the rates on agriculture a material reduction in either would be disastrous to tile farmer it would mean a general shrinkage of values a deflation of prices a reduction of wages a general depression carrying our people down to the low standard of living in our competing countries it is obvious that this would not improve but destroy our market for imports which is best served by maintaining our present high purchasing power under which in the past five years imports have increased 63 per cent it is exceedingly important that the federal land and land banks should furnish the best possible service for agriculture certain banks have fallen into improper and unsound practices resulting in the indictment of the officials of three of them more money has been provided for examinations and at the instance of the treasury rules and regulations of the federal farm board have been revised early last may three of its members resigned their places were filled with men connected with the war finance corporation eugene meyer being designated as farm loan commissioner the new members have demonstrated their ability in the field of agricultural finance in the extensive operations of he war finance corporation three banks have gone into receivership it is necessary to preserve the public confidence in this system in order to find a market for their bonds a recent flotation was made at a record low rate of 4 per cent careful supervision is absolutely necessary to protect the investor and enable these banks to exercise their chief function in serving agriculture the last year has seen considerable changes in the problem of muscle shoals development of other methods show that nitrates can probably be produced at less cost than by the use of hydroelectric power extensive investigation made by the department of war indicates that the nitrate plants on this project are of little value for national defense and can probably be disposed of within two years the oxidation part of the plants however should be retained indefinitely this leaves this project mostly concerned with power it should nevertheless continue to be dedicated to agriculture it is probable that this desire can be best served by disposing of the plant and applying the revenues received from it to research for methods of more economical production of concentrated fertilizer and to demonstrations and other methods of stimulating its use on the farm but in disposing of the property preference should be given to proposals to use all or part of it for nitrate production and fertilizer manufacturing for many years the federal government has been building a system of dikes along the mississippi river for protection against high water during the past season the lower states were overcome by a most disastrous flood many thousands of square miles were inundated a great many lives were lost much livestock was drowned and a very heavy destruction of property was inflicted upon the inhabitants the american red cross at once went to the relief of the stricken communities appeals for contributions have brought in over the federal government has provided services equipment and supplies probably amounting to about more between and in addition have been provided by local railroads the states and their political units credits have been arranged by the farm loan board and three emergency finance corporations with a total capital of have insured additional resources to the extent of through these means the people in the flooded areas have been adequately supported provision has been made to care for those in need until after the 1st of january the engineering corps of the army has contracted to close all breaks in the dike system before the next season of high water a most thorough and elaborate survey of the whole situation has been made and embodied in a report with recommendations for future flood control which will be presented to the congress the carrying out of their plans will necessarily extend over a series of years they will call for a raising and strengthening of the dike system with provision for emergency spillway and improvements for the benefit of navigation under the present law the land adjacent to the dikes has paid of the cost of their construction this has been a most extraordinary concession from the plan adopted in relation to irrigation where the general rule has been that the land benefited should bear the entire expense it is true of course that the troublesome waters do not originate on the land to be reclaimed but it is also true that such waters have a right of way through that section of the country and the land there is charged with that easement it is the land of this region that is to be benefited to say that it is unable to bear any expense of reclamation is the same thing as saying that it is not worth reclaiming because of expenses incurred and charges already held against this land it seems probable that some revision will have to be made concerning the proportion of cost which it should bear but it is extremely important that it should pay enough so that those requesting improvements will be charged with some responsibility for their cost and the neighborhood where works are constructed have a pecuniary interest in preventing waste and extravagance and securing a wise and economical expenditure of public funds it is necessary to look upon this emergency as a national disaster it has been so treated from its inception our whole people have provided with great generosity for its relief most of the departments of the federal government have been engaged in the same effort the governments of the afflicted areas both state and municipal can not be given too high praise for the courageous and helpful way in which they have come to the rescue of the people if the sources directly chargeable can not meet the demand the national government should not fail to provide generous relief this however does not mean restoration the government is not an insurer of its citizens against the hazard of the elements we shall always have flood and drought heat and cold earthquake and wind lightning and tidal wave which are all too constant in their afflictions the government does not undertake to reimburse its citizens for loss and damage incurred under such circumstances it is chargeable however with the rebuilding of public works and the humanitarian duty of relieving its citizens from distress the people in the flooded area and their representatives have approached this problem in the most generous and way they should be met with a like spirit on the part of the national government this is all one country the public needs of each part must be provided for by the public at large no required relief should be refused an adequate plan should be adopted to prevent a recurrence of this disaster in order that the people may restore to productivity and comfort their fields and their towns legislation by this congress should be confined to our principal and most pressing problem the lower mississippi considering tributaries only so far as they materially affect the main flood problem a definite federal program relating to our waterways was proposed when the last congress authorized a comprehensive survey of all the important streams of the country in order to provide for their improvement including flood control navigation power and irrigation other legislation should wait pending a report on this survey the recognized needs of the mississippi should not be made a vehicle for carrying other projects all proposals for development should stand on their own merits any other method would result in conclusions great waste of money and instead of promoting would delay the orderly and certain utilization of our water resources very recently several of the new england states have suffered somewhat similarly from heavy rainfall and high water no reliable estimate of damage has yet been computed but it is very large to private and public property the red cross is generously undertaking what is needed for immediate relief repair and reconstruction of houses restocking of domestic animals and food clothing and shelter a considerable sum of money will be available through the regular channels in the department of agriculture for reconstruction of highways it may be necessary to grant special aid for this purpose complete reports of what is required will undoubtedly be available early in the session the congress in its last session authorized the general improvements necessary to provide the mississippi waterway system with better transportation stabilization of the levels of the great lakes and their opening to the sea by an effective shipway remain to be considered since the last session the board of engineers of the war department has made a report on the proposal for a canal through the state of new york and the joint board of engineers representing canada and the united states has finished a report on the lawrence river both of these boards conclude that the lawrence project is cheaper affords a more expeditious method of placing western products in european markets and will cost less to operate the state department has requested the canadian government to negotiate treaties necessary to provide for this improvement it will also be necessary to secure an agreement with canada to put in works necessary to prevent fluctuation in the levels of the great lakes legislation is desirable for the construction of a dam at boulder canyon on the colorado river primarily as a method of flood control and irrigation a secondary result would be a considerable power development and a source of domestic water supply for southern california flood control is clearly a national problem and water supply is a government problem but every other possibility should be exhausted before the federal government becomes engaged in the power business the states which are interested ought to reach mutual agreement this project is in reality their work if they wish the federal government to undertake it they should not hesitate to make the necessary concessions to each other this subject is fully discussed in the annual report of the secretary of the interior the columbia river basin project is being studied and will be one to be considered at some future time the inland waterways corporation is proving successful and especially beneficial to agriculture a survey is being made to determine its future needs it has never been contemplated that if inland rivers were opened to navigation it would then be necessary for the federal government to provide the navigation such a request is very nearly the equivalent of a declaration that their navigation is not profitable that the commodities which they are to carry can be taken at a cheaper rate by some other method in which case the hundreds of millions of dollars proposed to be expended for opening rivers to navigation would be not only wasted but would entail further constant expenditures to carry the commodities of private persons for less than cost the policy is well established that the government should open public highways on land and on water but for use of the public in their private capacity it has put on some demonstration barge lines but always with the expectation that if they prove profitable they would pass into private hands and if they do not prove profitable they will be withdrawn the problems of transportation over inland waterways should be taken up by private enterprise so that the public will have the advantage of competition in service it is expected that some of our lines can be sold some more demonstration work done and that with the completion of the ohio project a policy of private operation can be fully developed after more than two generations of constant debate our country adopted a system of national prohibition under all the solemnities involved in an amendment to the federal constitution in obedience to this mandate the congress and the states with one or two notable exceptions have passed required laws for its administration and enforcement this imposes upon the citizenship of the country and especially on all public officers not only the duty to enforce but the obligation to observe the sanctions of this constitutional provision and its resulting laws if this condition could be secured all question concerning prohibition would cease the federal government is making every effort to accomplish these results through careful organization large appropriations and administrative effort smuggling has been greatly cut down the larger sources of supply for illegal sale have been checked and by means of injunction and criminal prosecution the process of enforcement is being applied the same vigilance on the part of local governments would render these efforts much more successful the federal authorities propose to discharge their obligation for enforcement to the full extent of their ability history does not anywhere record so much progress made in the same length of time as that which has been accomplished by the negro race in the united states since the emancipation proclamation they have come up from slavery to be prominent in education the professions art science agriculture banking and commerce it is estimated that of them are on the government pay rolls drawing about each year they have been the recipients of presidential appointments and their professional ability has arisen to a sufficiently high plane so that they have been intrusted with the entire management and control of the great veterans hospital at tuskegee where their conduct has taken high rank they have shown that they have been worthy of all the encouragement which they have received nevertheless they are too often subjected to thoughtless and inconsiderate treatment unworthy alike of the white or colored races they have especially been made the target of the foul crime of lynching for several years these acts of unlawful violence had been diminishing in the last year they have shown an increase every principle of order and law and liberty is opposed to this crime the congress should enact any legislation it can under the constitution to provide for its elimination the condition of the american indian has much improved in recent years full citizenship was bestowed upon them on june 2 1924 and appropriations for their care and advancement have been increased still there remains much to be done notable increases in appropriations for the several major functions performed by the department of the interior on behalf of the indians have marked the last five years in that time successive annual increases in appropriations for their education total for medical care and for industrial advancement or more than would have been spent in the same period on the basis of appropriations for 1923 and the preceding years the needs along health educational industrial and social lines however are great and the budget estimates for 1929 include still further increases for indian administration to advance the time when the indians may become it is my belief that the federal government should continue to improve the facilities for their care and as rapidly as possible turn its responsibility over to the states legislation authorizing a system of fuel administration and the appointment by the president of a board of mediation and conciliation in case of actual or threatened interruption of production is needed the miners themselves are now seeking information and action from the government which could readily be secured through such a board it is believed that a thorough investigation and reconsideration of this proposed policy by the congress will demonstrate that this recommendation is sound and should be adopted the national government is undertaking to join in the formation of a cooperative committee of lawyers engineers and public officers to consider what legislation by the states or by the congress can be adopted for the preservation and conservation of our supply of petroleum this has come to be one of the main dependencies for transportation and power so necessary to our agricultural and industrial life it is expected the report of this committee will be available for later congressional action meantime the requirement that the secretary of the interior should make certain leases of land belonging to the osage indians in accordance with the act of march 3 1921 should be repealed the authority to lease should be discretionary in order that the property of the indians way not be wasted and the public suffer a future lack of supply under treaty the property held by the alien property custodian was to be retained until suitable provision had been made for the satisfaction of american claims while still protecting the american claimants in order to afford every possible accommodation to the nationals of the countries whose property was held the congress has made liberal provision for the return of a larger part of the property all trusts under were returned in full and partial returns were made on the others the total returned was approximately there is still retained however about the mixed claims commission has made such progress in the adjudication of claims that legislation can now be enacted providing for the return of the property which should be done under conditions which will protect our government and our claimants such a measure will be proposed and i recommend its enactment in order to increase the efficiency of transportation and decrease its cost to the shipper railroad consolidation must be secured legislation is needed to simplify the necessary procedure to secure such agreements and arrangements for consolidation always under the control and with the approval of the interstate commerce commission pending this no adequate or permanent reorganization can be made of the structure meantime both agriculture and industry are compelled to wait for needed relief this is purely a business question which should be stripped of all local and partisan bias and decided on broad principles and its merits in order to promote the public welfare a large amount of new construction and equipment which will furnish employment for labor and markets for commodities of both factory and farm wait on the decision of this important question delay is holding back the progress of our country many of the same arguments are applicable to the consolidation of the washington traction companies the care which this country has lavished on its veterans is known of all men the yearly outlay for this purpose is about or about the cost of running the federal government outside of the post office department before the world war the congress will have before it recommendations of the american legion the veterans of foreign wars and other like organizations which should receive candid consideration we should continue to foster our system of compensation and rehabilitation and provide hospitals and insurance the magnitude of the undertaking is already so large that all requests calling for further expenditure should have the most searching scrutiny our present system of pensions is already sufficiently liberal it was increased by the last congress for civil and spanish war veterans and widows and for some dependents it has been suggested that the various governmental agencies now dealing with veterans relief be consolidated this would bring many advantages it is recommended that the proper committees of the congress make a thorough survey of this subject in order to determine if legislation to secure such consolidation is desirable for many years it has been the policy of the federal government to encourage and foster the because of education large sums of money are annually appropriated to carry on vocational training many millions go into agricultural schools the general subject is under the immediate direction of a commissioner of education while this subject is strictly a state and local function it should continue to have the encouragement of the national government i am still of the opinion that much good could be accomplished through the establishment of a department of education and relief into which would be gathered all of these functions under one directing member of the cabinet industrial relations have never been more peaceful in recent months they have suffered from only one serious controversy in all others difficulties have been adjusted both management and labor wishing to settle controversies by friendly agreement rather than by compulsion the welfare of women and children is being especially guarded by our department of labor its children bureau is in cooperation with 26 state boards and 80 juvenile courts through its bureau of immigration it bas been found that medical examination abroad has saved prospective immigrants from much hardship some further legislation to provide for reuniting families when either the husband or the wife is in this country and granting more freedom for the migration of the north american indian tribes is desirable the united states employment service has enabled about men and women to gain paying positions in the last fiscal year particular attention has been given to assisting men past middle life and in providing field labor for harvesting agricultural crops this has been made possible in part through the service of the federal board for vocational education which is cooperating with the states in a program to increase the technical knowledge and skill of the wage earner construction is under way in the country and ground has been broken for carrying out a program for washington we have reached a time when not only the conveniences but the architectural beauty of the public buildings of the capital city should be given much attention it will be necessary to purchase further land and provide the required continuing appropriations provision is being made to commemorate the two hundredth anniversary of the birth of george washington suggestion has been made for the construction of a memorial road leading from the capital to mount vernon which may well have the consideration of the congress and the commission intrusted with preparations for the celebration will undoubtedly recommend publication of the complete writings of washington and a series of writings by different authors relating to him february 25 is the one hundred and fiftieth anniversary of the capture of fort sackville at vincennes in the state of indiana this eventually brought into the union what was known as the northwest territory embracing the region north of the ohio river between the alleghenies and the mississippi river this expedition was led by george rogers clark his heroic character and the importance of his victory are too little known and understood they gave us not only this northwest territory but by means of that the prospect of reaching the pacific the state of indiana is proposing to dedicate the site of fort sackville as a national shrine the federal government may well make some provision for the erection under its own management of a fitting memorial at that point it is the policy of the united states to promote peace we are a peaceful people and committed to the settling of disputes by amicable adjustment rather than by force we have believed that peace can best be secured by a faithful observance on our part of the principles of international law accompanied by patience and conciliation and requiring of others a like treatment for ourselves we have lately had some difference with mexico relative to the injuries inflicted upon our nationals and their property within that country a firm adherence to our rights and a scrupulous respect for the sovereignty of mexico both in accordance with the law of nations coupled with patience and forbearance it is hoped will resolve all our differences without interfering with the friendly relationship between the two governments we have been compelled to send naval and marine forces to china to protect the lives and property of our citizens fortunately their simple presence there has been sufficient to prevent any material loss of life but there has been considerable loss of property that unhappy country is torn by factions and revolutions which bid fair to last for an indefinite period meanwhile we are protecting our citizens and stand ready to cooperate with any government which may emerge in promoting the welfare of the people of china they have always had our friendship and they should especially merit our consideration in these days of their distraction and distress we were confronted by similar condition on a small scale in nicaragua our marine and naval forces protected our citizens and their property and prevented a heavy sacrifice of life and the destruction of that country by a reversion to a state of revolution henry stimson former secretary of war was sent there to cooperate with our diplomatic and military officers in effecting a settlement between the contending parties this was done on the assurance that we would cooperate in restoring a state of peace where our rights would be protected by giving our assistance in the conduct of the next presidential election which occurs in a few months with this assurance the population returned to their peacetime pursuits with the exception of some small roving bands of outlaws in general our relations with other countries can be said to have improved within the year while having a due regard for our own affairs the protection of our own rights and the advancement of our own people we can afford to be liberal toward others our example has become of great importance in the world it is recognized that we are independent detached and can and do take a disinterested position in relation to international affairs our charity embraces the earth our trade is far flung our financial favors are widespread those who are peaceful and realize that not only have they nothing to fear from us but that they can rely on our moral support proposals for promoting the peace of the world will have careful consideration but we are not a people who are always seeking for a sign we know that peace comes from honesty and fair dealing from moderation and a generous regard for the rights of others the heart of the nation is more important than treaties a spirit of generous consideration is a more certain defense than great armaments we should continue to promote peace by our example and fortify it by such international covenants against war as we are permitted under our constitution to make our country has made much progress but it has taken and will continue to take much effort competition will be keen the temptation to selfishness and arrogance will be severe the provocations to deal harshly with weaker peoples will be many all of these are embraced in the opportunity for true greatness they will be overbalanced by cooperation by generosity and a spirit of neighborly kindness the forces of the universe are taking humanity in that direction in doing good in walking humbly in sustaining its own people in ministering to other nations america will work out its own mighty destiny
gratifying report fourth consecutive year state union general good peace country whole prosperity never exceeded wages highest range employment plentiful parts agriculture industry lagged localities suffered storm flood losses absorbed without serious detriment great economic structure stocks goods moderate wholesome caution prevalent rates interest industry agriculture government reduced savers investors providing capital new construction industry public works purchasing power agriculture increased people maintain confidence entitled america comfortable prosperity continue without constructive economy government expenditures enjoying results prospects physically war people disposed forget war debt still remains nation must make financial sacrifices accompanied stern public expenditures conquered disabilities public finance obligation veterans dependents large continuing heavier burden national debt steadily eliminated end fiscal year reduced annual interest including war savings reduced sacrifices people economy government showing remarkable results continued purpose relieving nation burden interest debt releasing revenue internal improvements national development amount rate government interest reduced callable bonds refunded paid year average rate interest present public debt first time fell 4 per cent keeping credit nation high tremendously profitable operation immediate fruit economy retirement public debt tax reduction annual saving interest 1925 1929 without bill relieve taxpayers would worth proposing three measures already enacted leave government revenues oppressive exemptions increased people make individual taxable returns reduction mainly purpose removing inequalities secretary treasury recommended measure would give us much better balanced system taxation without oppression produce sufficient revenue complete support unforeseen contingencies requiring money always arising probable surplus june 30 1929 small slight depression business would greatly reduce revenue present method taxation people ought take selfish attitude pressing removing moderate fair taxes might produce deficit must keep budget balanced year corner stone national credit trifling price pay command lowest rate interest great power world surplus applied debt reduction debt reduction tax reduction present circumstances would far better leave rates enact bill carrying peril deficit problem approached narrow partisan spirit participate finding reasonable solution entitled participate credit accrues without regard party congress already demonstrated tax legislation removed purely political consideration realm patriotic business principles bill tax reduction written responsible raising managing expending finances government special interests often selfish always uninformed national needs whole hired agents using proposed beneficiaries engines propaganda permitted influence withdrawal property taxation shall law unbalanced unjust bad business bad country probably resulting deficit disastrous financial consequences constitution given members congress sole authority decide tax measures shall presented approval welcoming information quarter congress continue exercise judgment matter vital important interests country taxation nation relying force fair dealing good maintain peace others provided moderate military force form adapted solely defense continued generous supply officers present base personnel subject fluctuations may temporarily desirable program air forces keeping policy commensurate notable contributions america science aeronautics provisions law lately enacted executed fast practical difficulties orderly stable development permit army small prudence requires kept high state efficiency provided supplies would permit immediate expansion garrison ration lately increased recommendations appropriation new housing made previous congress failed pass army well housed quartered wartime training camps becoming poorly housed past three years appropriated reconstruction repairs authorization approved new housing already appropriated law also passed complying request war department allocating funds received sale buildings land housing purposes work however completed appropriations recommended navy likewise weapon defense foreign commerce ocean lines trade unsurpassed country outlying territory two great oceans long stretches seacoast studded richest cities world responsible protection large population greatest treasure ever bestowed upon people charged international duty defending panama canal meet responsibilities need substantial sea armament needs aircraft development provided program needs submarines soon department decides upon best type construction needs airplane carriers material addition force cruisers plan future begin moderate building program country put away old world policy competitive armaments never relieved responsibility adequate national defense one treaty secured unprecedented attitude generosity part limitation naval armament careful preparation extending months recently made every effort secure treaty end granted much cooperation japan unable come agreement great britain results conference considerable value mostly negative character know agreement reached inconsistent considerable building program part ready willing continue preparatory investigations general subject limitation armaments started auspices league nations considerable cruiser tonnage part obsolete everyone knew agreement reached would left us necessity continuing building program failure agree us build either less otherwise future treaty limitation call us ships enter competition refrain needful program made clear world lacking definite agreement attitude country permitted alter policy especially demonstrated propaganda us change course treaty limitation size navy america solely america determine outside influence enlarge diminish known military power holds threat aggrandizement guaranty peace security home goes abroad instrument protection legal rights citizens international law refuge time disorder always servant world peace wherever flag goes rights humanity increase united states government fleet transporting large amount freight reducing drain treasury shipping board constantly pressure often yields protect private interests rather serve public welfare attention given merchant ships auxiliary navy possibility including masters crews naval reserve reasonable compensation thoroughly explored method encouraging private operation shipping public operation success investigation caused several made failed report could succeed recommend speedy transfer private ownership exporters importers indifferent using american ships policy keep present vessels repair dispose rapidly possible rather undertake new construction operation burden national treasury receiving sufficient benefits rapid growth taking place aeronautics department commerce charge inspection licensing system construction national airways almost miles already completed miles contemplated nearly miles equipped miles lighting emergency landing fields next july air mail contracts expected cover 24 lines daily airway flying nearly miles expected reach miles early next year flights purposes exceed miles day 900 airports completed uncompleted laid demand aircraft greatly increased policy already adopted congress producing sound development coming industry private enterprise showing much interest opening aviation service mexico central south america particularly solicitous united states take leading part development understood governments sister countries would willing cooperate physical features undeveloped state transportation make air service especially adaptable usage post office department granted power make liberal contracts carrying mail authority given army navy detail aviators planes cooperate private enterprise establishing mail service consent countries concerned committee cabinet later present report subject importance benefit good roads coming appreciated national government making liberal contributions encourage construction results benefits gratifying national participation however confined systems national tax automobiles nearly sufficient meet outlay tax small cars 2 3 year advantage good roads large desire improved highways limited country include western hemisphere principal points canada already accessible ought lend encouragement way good roads principal points hemisphere south rio grande practice supply countries military naval advisers requested assist national defense arts peace even important us authority given law provide request engineering advisers construction roads bridges countries already wonderful progress made road building engineering features often exacting financing difficult private interests look favor reasonable loans sought countries open main lines travel general subject promoted pan american congress highways convene rio de janeiro july 1928 desirable congress provide appointment delegates represent government united states temporary convention cuba advantage side 1926 shipped twelve times many parcels weighing times much received convention made understanding would repeal old law prohibiting importation cigars cigarettes quantities less enacted 1866 discourage smuggling long unnecessary law unjustly discriminates important industry cuba repeal recommended treasury post office departments unless done merchants railroads find deprived large business 1st next march date expiration convention extended upon specific understanding would expire time unless legislation enacted purchase large quantities tobacco made cuba probable purchases would larger law repealed would advantage many industries united states conditions philippine islands steadily improved contentment good order prevail roads irrigation works harbor improvements public buildings constructed public education sanitation advanced government sound financial condition immediate results especially due administration gov leonard wood six years governorship marked distinct improvement islands rank one outstanding accomplishments distinguished man death loss nation islands greater progress could made efficiency could put administration congress would undertake expend appropriating power part customs revenues turned philippine treasury powers auditor islands also need revision clarification government islands 98 per cent hands filipinos extension policy hastened demonstration part desire ability carry cordially efficiently provisions organic law enacted congress government islands would well committee congress visit islands every two years fair degree progress made porto rico agricultural products increasing treasury position given much concern shows improvement advised governor educational facilities still lacking roads constructed represents first requisite building schoolhouses loyalty island united states exceedingly gratifying memorial presented requesting authority governor elected people porto rico never done case territories admitted education outside towns yet deficient progressed efficiency government happiness people may need guiding hand appointed governor contemplated change made immediately general subject may well thoughtful study congress number commercial ships passing panama canal increased 1923 1927 total amount tolls turned treasury operations canal yielded surplus order provide additional storage water give control floods chagres river proposed erect dam cost alhajuela take five years complete work past year seen marked improvement general condition agriculture production better balanced without acute shortage heavy surplus costs reduced average output worker increased level farm prices risen others fallen purchasing power farmer approaching normal figure individual farmer entitled great credit progress made since 1921 adjusted production cooperative organizations methods improved marketing using authenticated facts employing sound methods industries obliged use secure stability prosperity haphazard system abandoned economics applied ascertain best adapted unit land diversification promoted scientific methods used production business principles marketing agriculture fully recovered postwar depression fact economic progress never marches forward straight line goes waves one part goes ahead another halts another recedes everybody wishes agriculture prosper sound workable proposal help farmer earnest support government interests identical legislation assist many producers many regions possible aim assist farmer work salvation socially economically plan permanent value leave standing foundation past government spent vast sums bring land cultivation apparent reached temporarily saturation point surplus production poor market land lately shown signs improvement main problem presented solution one dealing surplus production useless propose temporary expedient needed permanency stability government price fixing known unsound bound result disaster government subsidy would work way sound people hire people produce crop neither producers rest people want price fixing subsidy increase surplus instead diminishing putting government directly business merely combination subsidy price fixing aggravated political pressure expedients would lead logically telling farmer law much plant plant much sell sell effective means dealing surplus crops reduce surplus acreage done individual farmer done organizations already existence information published department agriculture especially banks others supply credit refusing finance acreage manifestly large impossible provide law assured success prosperity engage farming acreage becomes overextended government assume responsibility government however assist cooperative associations organizations orderly marketing handling surplus clearly due weather seasonal conditions order save producer preventable loss probably impossible secure result single step much worked trial rejection beginning could made setting federal board commission able experienced men marketing granting equal advantages board various agricultural commodities sections country giving encouragement cooperative movement agriculture providing revolving loan fund moderate rate interest necessary financing legislation would lay foundation permanent solution surplus problem proposal lend money farmer already fairly well financed lend money temporarily experimental marketing associations doubt ultimately financed regularly established banks temporary operations war finance corporation cooperative marketing especially would provided means buying building physical properties national government almost entirely relieved farmer income taxes successive tax reductions state local taxes increased putting grievous burden policy rigid economy applied state local expenditures clearly within legislative domain states federal government also improved banking structure system agricultural credits farmer greatly benefited similar action many states department agriculture undergoing changes organization order completely separate research regulatory divisions may better administered emphasis placed research program enlarging appropriations state experiment stations providing funds expanding research work department direction much future progress expected present tariff rates supply national treasury well annual revenue yet 65 per cent imports come duty free remaining 35 per cent imports duties laid 23 per cent consists luxuries agricultural products balance 12 per cent amounting around made manufactures merchandise one advocating material reduction rates agriculture luxuries comparatively small amount imports really considered discussion reducing tariff rates amount duty free would large enough seriously depress many lines business country small importance spread rest world often stated reduction tariff rates industry would benefit agriculture would interesting know commodities thought could applied everything farmer uses farming already free list nearly everything sells protected would seem obvious better tile country farmer raise food supply domestic manufacturer foreign manufacturer one case country would farmer would farmer manufacturer assuming europe would money sold us larger amounts merchandise certain would consume food purchases would made country undoubtedly would resort cheapest market means largest best profitable market farmer world domestic market great increase manufactured imports means closing plants nothing would worse agriculture probably one expects material reduction rates manufactures maintaining rates agriculture material reduction either would disastrous tile farmer would mean general shrinkage values deflation prices reduction wages general depression carrying people low standard living competing countries obvious would improve destroy market imports best served maintaining present high purchasing power past five years imports increased 63 per cent exceedingly important federal land land banks furnish best possible service agriculture certain banks fallen improper unsound practices resulting indictment officials three money provided examinations instance treasury rules regulations federal farm board revised early last may three members resigned places filled men connected war finance corporation eugene meyer designated farm loan commissioner new members demonstrated ability field agricultural finance extensive operations war finance corporation three banks gone receivership necessary preserve public confidence system order find market bonds recent flotation made record low rate 4 per cent careful supervision absolutely necessary protect investor enable banks exercise chief function serving agriculture last year seen considerable changes problem muscle shoals development methods show nitrates probably produced less cost use hydroelectric power extensive investigation made department war indicates nitrate plants project little value national defense probably disposed within two years oxidation part plants however retained indefinitely leaves project mostly concerned power nevertheless continue dedicated agriculture probable desire best served disposing plant applying revenues received research methods economical production concentrated fertilizer demonstrations methods stimulating use farm disposing property preference given proposals use part nitrate production fertilizer manufacturing many years federal government building system dikes along mississippi river protection high water past season lower states overcome disastrous flood many thousands square miles inundated great many lives lost much livestock drowned heavy destruction property inflicted upon inhabitants american red cross went relief stricken communities appeals contributions brought federal government provided services equipment supplies probably amounting addition provided local railroads states political units credits arranged farm loan board three emergency finance corporations total capital insured additional resources extent means people flooded areas adequately supported provision made care need 1st january engineering corps army contracted close breaks dike system next season high water thorough elaborate survey whole situation made embodied report recommendations future flood control presented congress carrying plans necessarily extend series years call raising strengthening dike system provision emergency spillway improvements benefit navigation present law land adjacent dikes paid cost construction extraordinary concession plan adopted relation irrigation general rule land benefited bear entire expense true course troublesome waters originate land reclaimed also true waters right way section country land charged easement land region benefited say unable bear expense reclamation thing saying worth reclaiming expenses incurred charges already held land seems probable revision made concerning proportion cost bear extremely important pay enough requesting improvements charged responsibility cost neighborhood works constructed pecuniary interest preventing waste extravagance securing wise economical expenditure public funds necessary look upon emergency national disaster treated inception whole people provided great generosity relief departments federal government engaged effort governments afflicted areas state municipal given high praise courageous helpful way come rescue people sources directly chargeable meet demand national government fail provide generous relief however mean restoration government insurer citizens hazard elements shall always flood drought heat cold earthquake wind lightning tidal wave constant afflictions government undertake reimburse citizens loss damage incurred circumstances chargeable however rebuilding public works humanitarian duty relieving citizens distress people flooded area representatives approached problem generous way met like spirit part national government one country public needs part must provided public large required relief refused adequate plan adopted prevent recurrence disaster order people may restore productivity comfort fields towns legislation congress confined principal pressing problem lower mississippi considering tributaries far materially affect main flood problem definite federal program relating waterways proposed last congress authorized comprehensive survey important streams country order provide improvement including flood control navigation power irrigation legislation wait pending report survey recognized needs mississippi made vehicle carrying projects proposals development stand merits method would result conclusions great waste money instead promoting would delay orderly certain utilization water resources recently several new england states suffered somewhat similarly heavy rainfall high water reliable estimate damage yet computed large private public property red cross generously undertaking needed immediate relief repair reconstruction houses restocking domestic animals food clothing shelter considerable sum money available regular channels department agriculture reconstruction highways may necessary grant special aid purpose complete reports required undoubtedly available early session congress last session authorized general improvements necessary provide mississippi waterway system better transportation stabilization levels great lakes opening sea effective shipway remain considered since last session board engineers war department made report proposal canal state new york joint board engineers representing canada united states finished report lawrence river boards conclude lawrence project cheaper affords expeditious method placing western products european markets cost less operate state department requested canadian government negotiate treaties necessary provide improvement also necessary secure agreement canada put works necessary prevent fluctuation levels great lakes legislation desirable construction dam boulder canyon colorado river primarily method flood control irrigation secondary result would considerable power development source domestic water supply southern california flood control clearly national problem water supply government problem every possibility exhausted federal government becomes engaged power business states interested ought reach mutual agreement project reality work wish federal government undertake hesitate make necessary concessions subject fully discussed annual report secretary interior columbia river basin project studied one considered future time inland waterways corporation proving successful especially beneficial agriculture survey made determine future needs never contemplated inland rivers opened navigation would necessary federal government provide navigation request nearly equivalent declaration navigation profitable commodities carry taken cheaper rate method case hundreds millions dollars proposed expended opening rivers navigation would wasted would entail constant expenditures carry commodities private persons less cost policy well established government open public highways land water use public private capacity put demonstration barge lines always expectation prove profitable would pass private hands prove profitable withdrawn problems transportation inland waterways taken private enterprise public advantage competition service expected lines sold demonstration work done completion ohio project policy private operation fully developed two generations constant debate country adopted system national prohibition solemnities involved amendment federal constitution obedience mandate congress states one two notable exceptions passed required laws administration enforcement imposes upon citizenship country especially public officers duty enforce obligation observe sanctions constitutional provision resulting laws condition could secured question concerning prohibition would cease federal government making every effort accomplish results careful organization large appropriations administrative effort smuggling greatly cut larger sources supply illegal sale checked means injunction criminal prosecution process enforcement applied vigilance part local governments would render efforts much successful federal authorities propose discharge obligation enforcement full extent ability history anywhere record much progress made length time accomplished negro race united states since emancipation proclamation come slavery prominent education professions art science agriculture banking commerce estimated government pay rolls drawing year recipients presidential appointments professional ability arisen sufficiently high plane intrusted entire management control great veterans hospital tuskegee conduct taken high rank shown worthy encouragement received nevertheless often subjected thoughtless inconsiderate treatment unworthy alike white colored races especially made target foul crime lynching several years acts unlawful violence diminishing last year shown increase every principle order law liberty opposed crime congress enact legislation constitution provide elimination condition american indian much improved recent years full citizenship bestowed upon june 2 1924 appropriations care advancement increased still remains much done notable increases appropriations several major functions performed department interior behalf indians marked last five years time successive annual increases appropriations education total medical care industrial advancement would spent period basis appropriations 1923 preceding years needs along health educational industrial social lines however great budget estimates 1929 include still increases indian administration advance time indians may become belief federal government continue improve facilities care rapidly possible turn responsibility states legislation authorizing system fuel administration appointment president board mediation conciliation case actual threatened interruption production needed miners seeking information action government could readily secured board believed thorough investigation reconsideration proposed policy congress demonstrate recommendation sound adopted national government undertaking join formation cooperative committee lawyers engineers public officers consider legislation states congress adopted preservation conservation supply petroleum come one main dependencies transportation power necessary agricultural industrial life expected report committee available later congressional action meantime requirement secretary interior make certain leases land belonging osage indians accordance act march 3 1921 repealed authority lease discretionary order property indians way wasted public suffer future lack supply treaty property held alien property custodian retained suitable provision made satisfaction american claims still protecting american claimants order afford every possible accommodation nationals countries whose property held congress made liberal provision return larger part property trusts returned full partial returns made others total returned approximately still retained however mixed claims commission made progress adjudication claims legislation enacted providing return property done conditions protect government claimants measure proposed recommend enactment order increase efficiency transportation decrease cost shipper railroad consolidation must secured legislation needed simplify necessary procedure secure agreements arrangements consolidation always control approval interstate commerce commission pending adequate permanent reorganization made structure meantime agriculture industry compelled wait needed relief purely business question stripped local partisan bias decided broad principles merits order promote public welfare large amount new construction equipment furnish employment labor markets commodities factory farm wait decision important question delay holding back progress country many arguments applicable consolidation washington traction companies care country lavished veterans known men yearly outlay purpose cost running federal government outside post office department world war congress recommendations american legion veterans foreign wars like organizations receive candid consideration continue foster system compensation rehabilitation provide hospitals insurance magnitude undertaking already large requests calling expenditure searching scrutiny present system pensions already sufficiently liberal increased last congress civil spanish war veterans widows dependents suggested various governmental agencies dealing veterans relief consolidated would bring many advantages recommended proper committees congress make thorough survey subject order determine legislation secure consolidation desirable many years policy federal government encourage foster education large sums money annually appropriated carry vocational training many millions go agricultural schools general subject immediate direction commissioner education subject strictly state local function continue encouragement national government still opinion much good could accomplished establishment department education relief would gathered functions one directing member cabinet industrial relations never peaceful recent months suffered one serious controversy others difficulties adjusted management labor wishing settle controversies friendly agreement rather compulsion welfare women children especially guarded department labor children bureau cooperation 26 state boards 80 juvenile courts bureau immigration bas found medical examination abroad saved prospective immigrants much hardship legislation provide reuniting families either husband wife country granting freedom migration north american indian tribes desirable united states employment service enabled men women gain paying positions last fiscal year particular attention given assisting men past middle life providing field labor harvesting agricultural crops made possible part service federal board vocational education cooperating states program increase technical knowledge skill wage earner construction way country ground broken carrying program washington reached time conveniences architectural beauty public buildings capital city given much attention necessary purchase land provide required continuing appropriations provision made commemorate two hundredth anniversary birth george washington suggestion made construction memorial road leading capital mount vernon may well consideration congress commission intrusted preparations celebration undoubtedly recommend publication complete writings washington series writings different authors relating february 25 one hundred fiftieth anniversary capture fort sackville vincennes state indiana eventually brought union known northwest territory embracing region north ohio river alleghenies mississippi river expedition led george rogers clark heroic character importance victory little known understood gave us northwest territory means prospect reaching pacific state indiana proposing dedicate site fort sackville national shrine federal government may well make provision erection management fitting memorial point policy united states promote peace peaceful people committed settling disputes amicable adjustment rather force believed peace best secured faithful observance part principles international law accompanied patience conciliation requiring others like treatment lately difference mexico relative injuries inflicted upon nationals property within country firm adherence rights scrupulous respect sovereignty mexico accordance law nations coupled patience forbearance hoped resolve differences without interfering friendly relationship two governments compelled send naval marine forces china protect lives property citizens fortunately simple presence sufficient prevent material loss life considerable loss property unhappy country torn factions revolutions bid fair last indefinite period meanwhile protecting citizens stand ready cooperate government may emerge promoting welfare people china always friendship especially merit consideration days distraction distress confronted similar condition small scale nicaragua marine naval forces protected citizens property prevented heavy sacrifice life destruction country reversion state revolution henry stimson former secretary war sent cooperate diplomatic military officers effecting settlement contending parties done assurance would cooperate restoring state peace rights would protected giving assistance conduct next presidential election occurs months assurance population returned peacetime pursuits exception small roving bands outlaws general relations countries said improved within year due regard affairs protection rights advancement people afford liberal toward others example become great importance world recognized independent detached take disinterested position relation international affairs charity embraces earth trade far flung financial favors widespread peaceful realize nothing fear us rely moral support proposals promoting peace world careful consideration people always seeking sign know peace comes honesty fair dealing moderation generous regard rights others heart nation important treaties spirit generous consideration certain defense great armaments continue promote peace example fortify international covenants war permitted constitution make country made much progress taken continue take much effort competition keen temptation selfishness arrogance severe provocations deal harshly weaker peoples many embraced opportunity true greatness overbalanced cooperation generosity spirit neighborly kindness forces universe taking humanity direction good walking humbly sustaining people ministering nations america work mighty destiny
gratify report fourth consecutive year state union general good peace country whole prosperity never exceed wage high range employment plentiful part agriculture industry lag locality suffer storm flood loss absorb without serious detriment great economic structure stock good moderate wholesome caution prevalent rate interest industry agriculture government reduce saver investor provide capital new construction industry public work purchase power agriculture increase people maintain confidence entitle america comfortable prosperity continue without constructive economy government expenditures enjoy result prospect physically war people dispose forget war debt still remain nation must make financial sacrifice accompany stern public expenditure conquer disability public finance obligation veteran dependent large continue heavy burden national debt steadily eliminate end fiscal year reduce annual interest include war saving reduce sacrifice people economy government show remarkable result continue purpose relieve nation burden interest debt release revenue internal improvement national development amount rate government interest reduce callable bond refund pay year average rate interest present public debt first time fell 4 per cent keep credit nation high tremendously profitable operation immediate fruit economy retirement public debt tax reduction annual save interest 1925 1929 without bill relieve taxpayer would worth propose three measure already enact leave government revenue oppressive exemption increase people make individual taxable return reduction mainly purpose remove inequality secretary treasury recommend measure would give u much well balanced system taxation without oppression produce sufficient revenue complete support unforeseen contingency require money always arise probable surplus june 30 1929 small slight depression business would greatly reduce revenue present method taxation people ought take selfish attitude press remove moderate fair tax might produce deficit must keep budget balanced year corner stone national credit trifle price pay command low rate interest great power world surplus applied debt reduction debt reduction tax reduction present circumstance would far well leave rate enact bill carry peril deficit problem approach narrow partisan spirit participate find reasonable solution entitle participate credit accrues without regard party congress already demonstrate tax legislation remove purely political consideration realm patriotic business principle bill tax reduction write responsible raise manage expend finance government special interest often selfish always uninformed national need whole hire agent use proposed beneficiary engines propaganda permit influence withdrawal property taxation shall law unbalance unjust bad business bad country probably result deficit disastrous financial consequence constitution give member congress sole authority decide tax measure shall present approval welcome information quarter congress continue exercise judgment matter vital important interest country taxation nation rely force fair deal good maintain peace others provide moderate military force form adapt solely defense continue generous supply officer present base personnel subject fluctuation may temporarily desirable program air force keep policy commensurate notable contribution america science aeronautics provision law lately enact execute fast practical difficulty orderly stable development permit army small prudence require kept high state efficiency provide supply would permit immediate expansion garrison ration lately increase recommendation appropriation new housing make previous congress fail pas army well house quarter wartime training camp become poorly house past three year appropriate reconstruction repair authorization approve new housing already appropriate law also pass comply request war department allocate fund receive sale building land housing purpose work however complete appropriation recommend navy likewise weapon defense foreign commerce ocean line trade unsurpassed country outlying territory two great ocean long stretch seacoast stud rich city world responsible protection large population great treasure ever bestow upon people charge international duty defend panama canal meet responsibility need substantial sea armament need aircraft development provide program need submarine soon department decide upon best type construction need airplane carrier material addition force cruiser plan future begin moderate building program country put away old world policy competitive armament never relieve responsibility adequate national defense one treaty secure unprecedented attitude generosity part limitation naval armament careful preparation extend month recently make every effort secure treaty end grant much cooperation japan unable come agreement great britain result conference considerable value mostly negative character know agreement reach inconsistent considerable building program part ready willing continue preparatory investigation general subject limitation armament start auspex league nation considerable cruiser tonnage part obsolete everyone know agreement reach would leave u necessity continue building program failure agree u build either less otherwise future treaty limitation call u ship enter competition refrain needful program make clear world lack definite agreement attitude country permit alter policy especially demonstrate propaganda u change course treaty limitation size navy america solely america determine outside influence enlarge diminish know military power hold threat aggrandizement guaranty peace security home go abroad instrument protection legal right citizens international law refuge time disorder always servant world peace wherever flag go right humanity increase united states government fleet transport large amount freight reduce drain treasury ship board constantly pressure often yield protect private interest rather serve public welfare attention give merchant ship auxiliary navy possibility include master crew naval reserve reasonable compensation thoroughly explore method encouraging private operation ship public operation success investigation cause several make fail report could succeed recommend speedy transfer private ownership exporter importer indifferent use american ship policy keep present vessel repair dispose rapidly possible rather undertake new construction operation burden national treasury receive sufficient benefit rapid growth take place aeronautics department commerce charge inspection license system construction national airway almost mile already complete mile contemplate nearly mile equip mile light emergency land field next july air mail contract expect cover 24 line daily airway fly nearly mile expect reach mile early next year flight purpose exceed mile day 900 airport complete uncompleted laid demand aircraft greatly increased policy already adopt congress produce sound development come industry private enterprise show much interest open aviation service mexico central south america particularly solicitous united state take lead part development understood government sister country would willing cooperate physical feature undeveloped state transportation make air service especially adaptable usage post office department grant power make liberal contract carry mail authority give army navy detail aviator plan cooperate private enterprise establish mail service consent country concern committee cabinet later present report subject importance benefit good road come appreciated national government make liberal contribution encourage construction result benefit gratify national participation however confine system national tax automobile nearly sufficient meet outlay tax small car 2 3 year advantage good road large desire improve highway limited country include western hemisphere principal point canada already accessible ought lend encouragement way good road principal point hemisphere south rio grande practice supply country military naval adviser request assist national defense art peace even important u authority give law provide request engineering adviser construction roads bridge country already wonderful progress make road building engineering feature often exact finance difficult private interest look favor reasonable loan sought country open main line travel general subject promote pan american congress highway convene rio de janeiro july 1928 desirable congress provide appointment delegate represent government unite state temporary convention cuba advantage side 1926 ship twelve time many parcel weigh time much receive convention make understand would repeal old law prohibit importation cigar cigarettes quantity less enacted 1866 discourage smuggle long unnecessary law unjustly discriminate important industry cuba repeal recommend treasury post office department unless do merchant railroad find deprived large business 1st next march date expiration convention extend upon specific understand would expire time unless legislation enact purchase large quantity tobacco make cuba probable purchase would large law repeal would advantage many industry united state condition philippine island steadily improve contentment good order prevail road irrigation work harbor improvement public building construct public education sanitation advance government sound financial condition immediate result especially due administration gov leonard wood six year governorship mark distinct improvement island rank one outstanding accomplishment distinguish man death loss nation islands great progress could make efficiency could put administration congress would undertake expend appropriate power part custom revenue turn philippine treasury power auditor island also need revision clarification government islands 98 per cent hand filipinos extension policy hasten demonstration part desire ability carry cordially efficiently provision organic law enact congress government island would well committee congress visit island every two year fair degree progress make porto rico agricultural product increase treasury position give much concern show improvement advise governor educational facility still lack road construct represent first requisite building schoolhouse loyalty island united state exceedingly gratify memorial present request authority governor elect people porto rico never do case territory admit education outside town yet deficient progressed efficiency government happiness people may need guide hand appoint governor contemplate change make immediately general subject may well thoughtful study congress number commercial ship pass panama canal increase 1923 1927 total amount toll turn treasury operation canal yield surplus order provide additional storage water give control flood chagres river propose erect dam cost alhajuela take five year complete work past year see mark improvement general condition agriculture production well balance without acute shortage heavy surplus cost reduce average output worker increase level farm price rise others fall purchase power farmer approach normal figure individual farmer entitle great credit progress make since 1921 adjusted production cooperative organization method improve marketing use authenticate fact employ sound method industry oblige use secure stability prosperity haphazard system abandon economics applied ascertain best adapt unit land diversification promote scientific method use production business principle market agriculture fully recover postwar depression fact economic progress never march forward straight line go wave one part go ahead another halt another recede everybody wish agriculture prosper sound workable proposal help farmer earnest support government interest identical legislation assist many producer many region possible aim assist farmer work salvation socially economically plan permanent value leave stand foundation past government spend vast sum bring land cultivation apparent reach temporarily saturation point surplus production poor market land lately show sign improvement main problem present solution one dealing surplus production useless propose temporary expedient need permanency stability government price fix know unsound bound result disaster government subsidy would work way sound people hire people produce crop neither producer rest people want price fix subsidy increase surplus instead diminish put government directly business merely combination subsidy price fix aggravated political pressure expedient would lead logically tell farmer law much plant plant much sell sell effective mean deal surplus crop reduce surplus acreage do individual farmer do organization already existence information publish department agriculture especially bank others supply credit refuse finance acreage manifestly large impossible provide law assure success prosperity engage farming acreage becomes overextended government assume responsibility government however assist cooperative association organization orderly market handle surplus clearly due weather seasonal condition order save producer preventable loss probably impossible secure result single step much work trial rejection beginning could make set federal board commission able experienced men market grant equal advantage board various agricultural commodity section country give encouragement cooperative movement agriculture provide revolve loan fund moderate rate interest necessary financing legislation would lay foundation permanent solution surplus problem proposal lend money farmer already fairly well financed lend money temporarily experimental marketing association doubt ultimately finance regularly establish bank temporary operation war finance corporation cooperative marketing especially would provide mean buy build physical property national government almost entirely relieved farmer income tax successive tax reduction state local tax increase put grievous burden policy rigid economy apply state local expenditure clearly within legislative domain state federal government also improve banking structure system agricultural credit farmer greatly benefit similar action many state department agriculture undergo change organization order completely separate research regulatory division may better administer emphasis place research program enlarge appropriation state experiment station provide fund expand research work department direction much future progress expect present tariff rate supply national treasury well annual revenue yet 65 per cent import come duty free remain 35 per cent import duty lay 23 per cent consist luxuries agricultural product balance 12 per cent amount around make manufacture merchandise one advocate material reduction rate agriculture luxury comparatively small amount import really consider discussion reduce tariff rate amount duty free would large enough seriously depress many line business country small importance spread rest world often state reduction tariff rate industry would benefit agriculture would interest know commodity think could apply everything farmer use farm already free list nearly everything sell protect would seem obvious good tile country farmer raise food supply domestic manufacturer foreign manufacturer one case country would farmer would farmer manufacturer assume europe would money sell u large amount merchandise certain would consume food purchase would make country undoubtedly would resort cheap market mean large best profitable market farmer world domestic market great increase manufacture import mean closing plant nothing would worse agriculture probably one expect material reduction rate manufacture maintain rate agriculture material reduction either would disastrous tile farmer would mean general shrinkage value deflation price reduction wag general depression carry people low standard living compete country obvious would improve destroy market import best serve maintain present high purchasing power past five year import increase 63 per cent exceedingly important federal land land bank furnish best possible service agriculture certain bank fall improper unsound practice result indictment official three money provide examination instance treasury rule regulation federal farm board revise early last may three member resign place fill men connect war finance corporation eugene meyer designate farm loan commissioner new member demonstrate ability field agricultural finance extensive operation war finance corporation three bank go receivership necessary preserve public confidence system order find market bond recent flotation make record low rate 4 per cent careful supervision absolutely necessary protect investor enable bank exercise chief function serve agriculture last year see considerable change problem muscle shoal development method show nitrate probably produce less cost use hydroelectric power extensive investigation make department war indicate nitrate plant project little value national defense probably dispose within two year oxidation part plant however retain indefinitely leave project mostly concerned power nevertheless continue dedicate agriculture probable desire best serve dispose plant apply revenue receive research method economical production concentrate fertilizer demonstration method stimulate use farm dispose property preference give proposal use part nitrate production fertilizer manufacture many year federal government build system dike along mississippi river protection high water past season lower state overcome disastrous flood many thousand square mile inundate great many live lost much livestock drown heavy destruction property inflict upon inhabitant american red cross go relief stricken community appeal contribution bring federal government provide service equipment supply probably amount addition provide local railroad state political unit credit arrange farm loan board three emergency finance corporation total capital insure additional resource extent mean people flood area adequately support provision make care need 1st january engineering corp army contract close break dike system next season high water thorough elaborate survey whole situation make embodied report recommendation future flood control present congress carry plan necessarily extend series year call raise strengthen dike system provision emergency spillway improvement benefit navigation present law land adjacent dike pay cost construction extraordinary concession plan adopt relation irrigation general rule land benefit bear entire expense true course troublesome water originate land reclaim also true water right way section country land charge easement land region benefit say unable bear expense reclamation thing say worth reclaim expense incur charge already hold land seem probable revision make concern proportion cost bear extremely important pay enough requesting improvement charge responsibility cost neighborhood work construct pecuniary interest prevent waste extravagance secure wise economical expenditure public fund necessary look upon emergency national disaster treat inception whole people provide great generosity relief department federal government engage effort government afflict area state municipal give high praise courageous helpful way come rescue people source directly chargeable meet demand national government fail provide generous relief however mean restoration government insurer citizen hazard element shall always flood drought heat cold earthquake wind lightning tidal wave constant affliction government undertake reimburse citizen loss damage incur circumstance chargeable however rebuild public work humanitarian duty relieve citizen distress people flood area representative approach problem generous way meet like spirit part national government one country public need part must provide public large require relief refuse adequate plan adopt prevent recurrence disaster order people may restore productivity comfort field town legislation congress confine principal pressing problem lower mississippi consider tributary far materially affect main flood problem definite federal program relating waterway propose last congress authorize comprehensive survey important stream country order provide improvement include flood control navigation power irrigation legislation wait pending report survey recognize need mississippi make vehicle carry project proposal development stand merit method would result conclusion great waste money instead promote would delay orderly certain utilization water resource recently several new england state suffer somewhat similarly heavy rainfall high water reliable estimate damage yet compute large private public property red cross generously undertake need immediate relief repair reconstruction house restock domestic animal food clothing shelter considerable sum money available regular channel department agriculture reconstruction highway may necessary grant special aid purpose complete report require undoubtedly available early session congress last session authorize general improvement necessary provide mississippi waterway system well transportation stabilization level great lake open sea effective shipway remain consider since last session board engineer war department make report proposal canal state new york joint board engineer represent canada united state finish report lawrence river board conclude lawrence project cheap affords expeditious method place western product european market cost less operate state department request canadian government negotiate treaty necessary provide improvement also necessary secure agreement canada put work necessary prevent fluctuation level great lakes legislation desirable construction dam boulder canyon colorado river primarily method flood control irrigation secondary result would considerable power development source domestic water supply southern california flood control clearly national problem water supply government problem every possibility exhaust federal government becomes engage power business state interested ought reach mutual agreement project reality work wish federal government undertake hesitate make necessary concession subject fully discuss annual report secretary interior columbia river basin project study one consider future time inland waterway corporation prove successful especially beneficial agriculture survey make determine future need never contemplate inland river open navigation would necessary federal government provide navigation request nearly equivalent declaration navigation profitable commodity carry take cheap rate method case hundred million dollar propose expended opening river navigation would waste would entail constant expenditure carry commodity private person less cost policy well establish government open public highway land water use public private capacity put demonstration barge line always expectation prove profitable would pass private hand prove profitable withdrawn problem transportation inland waterway take private enterprise public advantage competition service expect line sell demonstration work do completion ohio project policy private operation fully develop two generation constant debate country adopt system national prohibition solemnity involve amendment federal constitution obedience mandate congress state one two notable exception pass require law administration enforcement impose upon citizenship country especially public officer duty enforce obligation observe sanction constitutional provision result law condition could secure question concern prohibition would cease federal government make every effort accomplish result careful organization large appropriation administrative effort smuggle greatly cut large source supply illegal sale check mean injunction criminal prosecution process enforcement apply vigilance part local government would render effort much successful federal authority propose discharge obligation enforcement full extent ability history anywhere record much progress make length time accomplish negro race united state since emancipation proclamation come slavery prominent education profession art science agriculture bank commerce estimate government pay roll draw year recipient presidential appointment professional ability arise sufficiently high plane intrust entire management control great veteran hospital tuskegee conduct take high rank show worthy encouragement receive nevertheless often subject thoughtless inconsiderate treatment unworthy alike white colored race especially make target foul crime lynch several year act unlawful violence diminishing last year show increase every principle order law liberty oppose crime congress enact legislation constitution provide elimination condition american indian much improve recent year full citizenship bestow upon june 2 1924 appropriation care advancement increase still remain much do notable increase appropriation several major function perform department interior behalf indian mark last five year time successive annual increase appropriation education total medical care industrial advancement would spend period basis appropriation 1923 precede year need along health educational industrial social line however great budget estimate 1929 include still increase indian administration advance time indian may become belief federal government continue improve facility care rapidly possible turn responsibility state legislation authorize system fuel administration appointment president board mediation conciliation case actual threaten interruption production need miner seek information action government could readily secure board believe thorough investigation reconsideration propose policy congress demonstrate recommendation sound adopt national government undertake join formation cooperative committee lawyer engineer public officer consider legislation state congress adopt preservation conservation supply petroleum come one main dependency transportation power necessary agricultural industrial life expect report committee available late congressional action meantime requirement secretary interior make certain lease land belong osage indian accordance act march 3 1921 repealed authority lease discretionary order property indians way waste public suffer future lack supply treaty property hold alien property custodian retain suitable provision make satisfaction american claim still protect american claimant order afford every possible accommodation national country whose property hold congress make liberal provision return large part property trust return full partial return make others total return approximately still retain however mixed claim commission make progress adjudication claim legislation enact provide return property do condition protect government claimant measure propose recommend enactment order increase efficiency transportation decrease cost shipper railroad consolidation must secure legislation need simplify necessary procedure secure agreement arrangement consolidation always control approval interstate commerce commission pending adequate permanent reorganization make structure meantime agriculture industry compel wait need relief purely business question strip local partisan bias decide broad principle merit order promote public welfare large amount new construction equipment furnish employment labor market commodities factory farm wait decision important question delay hold back progress country many argument applicable consolidation washington traction company care country lavish veteran know men yearly outlay purpose cost run federal government outside post office department world war congress recommendation american legion veteran foreign war like organization receive candid consideration continue foster system compensation rehabilitation provide hospital insurance magnitude undertake already large request call expenditure search scrutiny present system pension already sufficiently liberal increase last congress civil spanish war veteran widow dependent suggest various governmental agency deal veteran relief consolidate would bring many advantage recommend proper committee congress make thorough survey subject order determine legislation secure consolidation desirable many year policy federal government encourage foster education large sum money annually appropriate carry vocational training many million go agricultural school general subject immediate direction commissioner education subject strictly state local function continue encouragement national government still opinion much good could accomplish establishment department education relief would gather function one direct member cabinet industrial relation never peaceful recent month suffer one serious controversy others difficulty adjust management labor wish settle controversy friendly agreement rather compulsion welfare woman child especially guard department labor child bureau cooperation 26 state board 80 juvenile court bureau immigration ba find medical examination abroad save prospective immigrant much hardship legislation provide reunite family either husband wife country grant freedom migration north american indian tribe desirable united state employment service enable men woman gain pay position last fiscal year particular attention give assist men past middle life provide field labor harvest agricultural crop make possible part service federal board vocational education cooperate state program increase technical knowledge skill wage earner construction way country ground broken carry program washington reach time convenience architectural beauty public building capital city give much attention necessary purchase land provide require continuing appropriation provision make commemorate two hundredth anniversary birth george washington suggestion make construction memorial road lead capital mount vernon may well consideration congress commission intrust preparation celebration undoubtedly recommend publication complete writing washington series writing different author relate february 25 one hundred fiftieth anniversary capture fort sackville vincennes state indiana eventually bring union know northwest territory embrace region north ohio river allegheny mississippi river expedition lead george rogers clark heroic character importance victory little know understood give u northwest territory mean prospect reach pacific state indiana propose dedicate site fort sackville national shrine federal government may well make provision erection management fit memorial point policy united state promote peace peaceful people commit settle dispute amicable adjustment rather force believe peace best secure faithful observance part principles international law accompany patience conciliation require others like treatment lately difference mexico relative injury inflict upon national property within country firm adherence right scrupulous respect sovereignty mexico accordance law nation couple patience forbearance hop resolve difference without interfere friendly relationship two government compel send naval marine force china protect live property citizen fortunately simple presence sufficient prevent material loss life considerable loss property unhappy country torn faction revolution bid fair last indefinite period meanwhile protect citizen stand ready cooperate government may emerge promote welfare people china always friendship especially merit consideration day distraction distress confront similar condition small scale nicaragua marine naval force protect citizen property prevent heavy sacrifice life destruction country reversion state revolution henry stimson former secretary war send cooperate diplomatic military officer effect settlement contend party do assurance would cooperate restore state peace right would protect give assistance conduct next presidential election occur month assurance population return peacetime pursuit exception small roving band outlaws general relation country say improve within year due regard affair protection right advancement people afford liberal toward others example become great importance world recognize independent detached take disinterested position relation international affair charity embrace earth trade far flung financial favor widespread peaceful realize nothing fear u rely moral support proposal promote peace world careful consideration people always seek sign know peace come honesty fair deal moderation generous regard right others heart nation important treaty spirit generous consideration certain defense great armament continue promote peace example fortify international covenant war permit constitution make country make much progress take continue take much effort competition keen temptation selfishness arrogance severe provocation deal harshly weak people many embraced opportunity true greatness overbalance cooperation generosity spirit neighborly kindness force universe take humanity direction good walking humbly sustain people minister nation america work mighty destiny