Message to Congress

Here follows a condensation of the President's message to Congress:

Introduction. "The age of perfection is still in the somewhat distant future, but it is more in danger of being retarded by mistaken government activity than it is from lack of legislation."

State Rights and Federal Subsidies. "Local self-government is one of our most precious possessions. It ought not to be infringed by assault or undermined by purchase....

"Society is in much more danger from encumbering the national government beyond its wisdom to comprehend or its ability to administer, than from leaving the local communities to bear their own burdens and remedy their own evils."

Economy. "We still have an enormous debt of over $20,000,000,000, on which the interest and sinking-fund requirements are $1,320,000,000. Our appropriations for the pension office and the veterans' bureau are $600,000,000. The War and Navy departments call for $642,000,000. Other requirements, exclusive of the postoffice, which is virtually self-sustaining, brought the appropriations for the current year up to almost $3,100,000,000. This shows an expenditure of close to $30 for every inhabitant of the country....

"Only one of these great items can be ultimately extinguished. That is the item of our War debt. Already this has been reduced by about $6,000,000,000, which means an annual saving in interest of close to $250,000,000. The present interest charge is about $820,000,000 yearly. . . .

"Proposals have been made to extend the payment over a period of 62 years. If $1,000,000,000 is paid at the end of 20 years, the cost to the taxpayers is the principal and, if the interest is 4 1/4%, a total of $1,850,000,000. If the same sum is paid at the end of 62 years, the cost is $3,635,000,000, or almost double....

"Real improvement, however, must come not from additional curtailment of expenses, but by a more intelligent, more ordered spending. Our economy must be constructive. While we should avoid as far as possible increases in permanent current expenditures, oftentimes a capital outlay like internal improvements will result in actual constructive saving. That is economy in its best sense."

Appropriating and Spending. "The purpose of maintaining the Budget Director and the Comptroller General is to secure economy and efficiency in government expenditure. No better method has been devised for the accomplishment of that end."

Tax Reduction. "With commendable promptness the Ways and Means Committee of the House has undertaken in advance of the meeting of Congress to frame a revenue act.... In its present form it should provide sufficient revenue for the government....

"I approve of the bill in principle. In so far as income tax exemptions are concerned, it seems to me the committee has gone as far as it is safe to go and somewhat further than I should have gone. Any further extension along these lines would, in my opinion, impair the integrity of our income tax system."

Foreign Policy. "The policy of our foreign relations, casting aside any suggestion of force, rests solely on the foundation of peace, good will, and good works."

Joining the World Court. "The proposal submitted to the Senate was made dependent upon four conditions: 1) that by supporting the Court we do not assume any obligations under the League; 2) that we may participate upon an equality with other states in the election of judges; 3), that the Congress shall determine what part of the expenses we shall bear; 4), that the statute creating the Court shall not be amended without our consent; and to these I have proposed an additional condition to the effect that we are not to be bound by advisory opinions rendered without our consent....

"If we are going to support any Court, it will not be one that we have set up alone or which reflects only our ideals. Other nations have their customs and their institutions, their thoughts and their methods of life. If a Court is going to be international, its composition will have to yield to what is good in all these various elements. Neither will it be possible to support a Court which is exactly perfect, or under which we assume absolutely no obligations. If we are seeking that opportunity, we might as well declare that we are opposed to supporting any Court. . . . We shall not find ourselves bearing a disproportionate share of the world's burdens by our adherence, and we may as well remember that there is absolutely no escape for our country from bearing its share of the world's burdens in any case. . . . The old balance of power, mutual alliances, and great military forces were not brought about by any mutual dislike for independence, but resulted from the domination of circumstances "

Debt Settlements. "Those made with Great Britain, Finland, Hungary, Lithuania, and Poland have already been approved by the Congress. Since the adjournment, further agreements have been entered into with Belgium, Czechoslovakia, Latvia, Esthonia, Italy and Roumania. These eleven nations, which have already made settlements, represent $6,419,528,641 of the original principal of the loans. The principal sums, without interest, still pending, are the debt of France, of $3,340,000,000; Greece, $15,000,000; Jugoslavia, $51,000,000; Liberia, $26,000; Russia, $192,000,000, which those at present in control have undertaken openly to repudiate; Nicaragua, $84,000, which is being paid currently, and Austria, $24,000,000, on which by act of Congress a moratorium of 20 years has been granted. The only remaining sum is $12,000,000, due from Armenia, which has now ceased to exist as an independent nation."

Alien Property. "Negotiations are progressing among the interested parties in relation to the final distribution of the assets in the hands of the alien property custodian. . . . Pending the outcome of these negotiations, I do not recommend any affirmative legislation."

Immigration. "While not enough time has elapsed to afford a conclusive demonstration, such results as have been secured indicate that our immigration law is on the whole beneficial. It is undoubtedly a protection to the wage earners of this country."

National Defense. "Never before in time of peace has our country maintained so large and effective a military force as it now has. The Army, Navy, Marine Corps, National Guard, and organized reserves represent a strength of about 558,400 men. . . .

"A sound selective service act giving broad authority for the mobilization in time of peril of all the resources of the country, both persons and materials, is needed to perfect our defensive policy in accordance with our ideals of equality. . . .

"The Navy has the full treaty tonnage of capital ships. Work is going forward in modernizing the older ones, building aircraft carriers, additional fleet submarines, and fast scout cruisers, but we are carefully avoiding anything that might be construed as a competition in armaments with other nations. . . .

"The report of the air board ought to be reassuring to the country, gratifying to the service and satisfactory to the Congress. It is thoroughly complete and represents the mature thought of the best talent in the country. No radical change in organization of the service seems necessary. We must have an air strength worthy of America."

Care of Veterans. "If anyone desires to estimate the esteem in which the veterans of America are held by their fellow citizens, it is but necessary to remember that the current budget calls for an expenditure of about $650,000,000 in their behalf. This is nearly the amount of the total cost of the national government, exclusive of the postoffice, before we entered the last war. . . .

"The organizations of ex-service men have proposed additional legislative changes which you will consider. Further changes in the basic law should be few and made only after careful though sympathetic consideration."

Agriculture. "No doubt the position of agriculture as a whole has very much improved since the depression of three and four years ago. . . .

Muscle Shoals. "The problem of Muscle Shoals seems to me to have assumed a place all out of proportion with its real importance. It probably does not represent in market value much more than a first-class battleship, yet it has been discussed in the Congress over a period of years and for months at a time. It ought to be developed for the production of nitrates primarily, and incidentally for power purposes. . . . I am convinced that the best possible disposition can be made by direct authorization of the Congress."

Reclamation. "About one-third of the projects is in good financial condition, another third can probably be made profitable, while the other third is under unfavorable conditions . . .

"The States should be required to exert some effort and assume some responsibility, especially in the intimate, detailed, and difficult work of securing settlers and developing farms which directly profit them but only indirectly and remotely can reimburse the nation. It is believed that the Federal government should continue to be the agency for planning and constructing the great undertakings.

"It has appeared from all the investigations that I have been able to make that the farmers as a whole are determined to maintain the independence of their business. They do not wish to have meddling on the part of the government. They are showing a very commendable skill in organizing themselves to transact their own business through cooperative marketing, which will this year turn over about $2,500,000,000, or nearly one-fifth of the total agricultural business. The Department of Agriculture should be strengthened in order to be able to respond when these marketing associations want help."

U. S. Merchant Marine, "We have a large number of ships engaged in that service. We also have a surplus supply, costly to care for, which ought to be sold. . . . The fleet should be under the direct control of a single executive head, while the Shipping Board should exercise its judicial and regulatory functions in accordance with its original conception."

Coal. "With deposits of coal in this country capable of supplying its needs for hundreds of years, inability to manage and control this great resource for the benefit of all concerned is very close to a national economic failure. ... At the present time the national government has little or no authority to deal with this vital necessity of the life of the country. It has permitted itself to remain so powerless that its only attitude must be humble supplication. Authority should be lodged with the President and the Departments of Commerce and Labor, giving them power to deal with an emergency. They should be able to appoint temporary boards with authority to call for witnesses and documents, conciliate differences, encourage arbitration, and in case of threatened scarcity exercise control over distribution."

Prohibition. "It is the law of the land. It is the duty of all who come under its jurisdiction to observe the spirit of that law, and it is the duty of the Department of Justice and the Treasury Department to enforce it. But the Constitution also puts a concurrent duty on the States. We need their active and energetic cooperation, the vigilant action of their police and the jurisdiction of their courts to assist in enforcement."

Waterways. "The Government made an agreement during the War to take over the Cape Cod canal, under which the owners made valuable concessions. This pledged faith of the Government ought to be redeemed.

"Two other main fields are under consideration. One is the Great Lakes and St. Lawrence, including the Erie canal. This includes stabilizing the lake level, and is both a waterway and power project. A joint commission of the United States and Canada is working on plans and surveys. . . . The other is the Mississippi River system. This is almost entirely devoted to navigation. Work on the Ohio River will be completed in about three years. A modern channel connecting Chicago, New Orleans, Kansas City and Pittsburgh should be laid out and work on the tributaries prosecuted. . . ."

Railways. "The railroads throughout the country are in a fair state of prosperity. Their condition would be improved and the public better served by a system of consolidations. I recommend that the Congress authorize such consolidations under the supervision of the Commerce. Commission, with power to approve or disapprove when proposed parts are excluded or new parts added."

Possessions. "A very large amount of money is being expended for administration in Alaska. It appears so far out of proportion to the number of inhabitants and the amount of production as to indicate cause for thorough investigation. Likewise consideration should be given to the experience under the law which governs the Philippines. More authority should be given to the Governor General."

Motherhood in the D. C. "Although more than 40 of our States have enacted measures in aid of motherhood, the District of Columbia is still without such a law."

Civil Service. "In 1883 the Congress passed the Civil Service Act, which from a modest beginning of 14,000 employes has grown until there are now 425,000 in the classified service. This has removed the clerical force of the nation from the wasteful effects of the spoils system and made it more stable and efficient. The time has come to consider classifying all postmasters, collectors of customs, collectors of internal revenue, and prohibition agents, by an act covering those at present in office, except when otherwise provided by executive order."

Reorganization of the Executive Branch. "No final action has yet been taken on the measure providing for the reorganization of the various departments. I therefore suggest that this measure, which will be of great benefit to the efficient and economical administration of the business of the government, be brought forward and passed."

Negroes. "Nearly one-tenth of our population consists of the negro race. The progress which they have made in all the arts of civilization in the last 60 years is almost beyond belief. Our country has no more loyal citizens. But they do still need sympathy, kindness, and helpfulness. Those who do violence to them should be punished for their crimes."

Conclusion. "Legislation can provide opportunity. Whether it is taken advantage of or not depends upon the people themselves."