Monday, Dec. 08, 1930

State of the Union

The President of the U. S. "shall from time to time give to the Congress information of the State of the Union and recommend to their consideration such measures as he shall judge necessary and expedient." So says the U. S. Constitution. President Hoover last week obeyed the injunction for his third time in 21 months of office. He did not go to the Capitol himself. Instead, clerks intoned his Message from the Nation's rostra. The Nation's legislators take an opportunity like this to go and eat their luncheons, gossip in the lobbies.

To legislators eager for immediate action on pet subjects, the Message seemed, when they read it. a rather vague, long view of the Union's state. The President said: "Substantial progress has been made during the year in national peace and security; the fundamental strength of the Nation's economic life is unimpaired; education and scientific discovery have made advances; our country is more alive to its problems of moral and spiritual welfare. . . ."

Depression. "During the last twelve months we have suffered with other nations from economic depression. . . . The extent of the depression is indicated by the following approximate percentages of activity during the past three months as compared with the highly prosperous year 1928.*

Value of department-store sales 93% of 1928

Volume of manufacturing production 80% of 1928

Volume of mineral production 90% of 1928

Volume of factory employment 84% of 1928

Total of bank deposits 105% of 1928

Wholesale prices--all commodities 83% of 1928

Cost of living 94% of 1928

"Economic wounds must be healed by the action of the cells of the economic body--the producers and consumers themselves. Recovery can be expedited . . . by co-operative action. . . . The co-operation of public utilities, railways and other large organizations has been generously given in construction. . . . The volume of this type of construction work, which amounted to roughly $6,300,000,000 in 1929, instead of decreasing will show a total of about $7,000,000,000 for 1930. . . . The Federal Government is engaged upon the greatest program of waterway, harbor, flood control, public building, highway, and airway improvement in all our history. This, together with loans to merchant shipbuilders, improvement of the Navy and in military aviation, and other construction work . . . will exceed $520,000,000 for this fiscal year. This compares with $253,000,000 in the fiscal year 1928. . . .

"I feel warranted in asking the Congress for an appropriation of from $100,000,000 to $150,000,000. In connection therewith we need some authority to make enlarged temporary advances of Federal-highway aid to the States. I recommend that this appropriation be made distributable to the different departments upon recommendation of a committee of the Cabinet and approval by the President. . . . "The Congress will have presented to it numbers of projects, some of them under the guise of, rather than the reality of, their use of employment during the depression. . . . I can not emphasize too strongly the absolute necessity to defer any other plans for increase of Government expenditures. . . .

"It is my belief that after the passing of this depression, when we can examine it in retrospect, we shall need to consider . . . what action may be taken by the Government to remove possible governmental influences which make for instability and to better organize mitigation of the effect of depression. It is as yet too soon to constructively formulate such measures. . . ."

Legislation. "The Congress has before it legislation partially completed in respect to Muscle Shoals, bus regulation, relief of congestion in the courts, reorganization of border patrol in prevention of smuggling, law enforcement in the District of Columbia. . . . It is desirable that these measures should be completed. . . . There are a number of questions which, if time does not permit action, I recommend should be placed in consideration . . . for subsequent action." Here the President briefly outlined the following subjects: 1) regulation of interstate electrical power; 2) consolidation of railways; 3) revision of the anti-Trust laws; 4) repeal of the capital-gains tax; 5) further restriction of immigration; 6) strengthening the deportation laws; 7) building of postoffices; 8) equalization of veterans' allowances; 9) Federal aid to State child health services.

Foreign Relations. Preparatory to announcing his World Court decision, the President announced: "Our relations with foreign countries have been maintained upon a high basis of cordiality and good will."

*It has long been the Hoover Administration's wise custom to use normal 1928 instead of sky-rocketing 1929, as a basis for comparison with 1930.

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