Casper Daily Tribune Newspaper, December 8, 1925, Page 8

PAGE EIGH1 (Continued From Page One) limited. The wiser policy 1s to leave the localities, so far as we cun, pos sessed of thefr own sources of reve- and charged with thelr own tions. Government Economy. It is a fundamental principle of our country that the people are sov- ereign. While they recogn’ze the undeniable authority of the state, they have established as {te Instru- ment a government of limited pow- ers. They hold inviolate in their own hunds the jurisdiction over their own freedom and the owner: ship of their own property, Neither of these can be impaired except by the process of law. The wealth of our country is not public wealth, but private wealth. It does not belong to the government, ft belongs to the people. The government has no justification in taking private prop- erty except for a publi. purpose. It is always necessary to keep these principles in mind In the paying of taxes and in the making of appropri. vations, No right exists to levy on a dollar, or to order the expenditure of a dollar, of the money of the peo- ple, except for a necessary public purpose duly authorized by the con- stitution. The power over the purse {s the power over liberty. That is the legal imitation within which the congress can act. How It will proceed within this imitation ts always a question of policy. When the country 1s prosperous and free from debt, when the rate of taxation {s low, opportunity exists for assum- ing new burdens and undertaking new enterprises. Such a condition now prevails only to a limited ex- tent. All proposals for assuming new obligations ought to be postponed, unless they are reproductive capital investments or are such as are ab- solutely necessary at this time. We still have an enormous debt of over $20,000,000,000. on which the Interest and sinking fund requirements are $1,320,000,000. Our appropriations for the pension office and the veterans’ bureau are $600,000,000. ‘The war and navy departments call for $642, 006,000. Other requirements, exclu- sive of the post office, which is virt- ually self-sustaining, brought the ap- propriations for the current year up to almost $3.100,000,000. This shows an expenditure of close to $30 for every inhabitant of our country. For the average family of five it means a tax, directly or indirectly paid, of about $150 for national purposes alone. The local tax adds much more. These enormous expenditures ought not to be Increased, but through every possible effort they ought to be reduced. Only one of these great items can be ultimately extinguished. That is the item of our war debt. Already this has has *een reduced ty about $6,000,000,000, which.means an an- ual saving in Interest of close to 250,000,000. The present interest charge {s about $820,000,000 yearly. It would seem to be obvious that the sooner this debt can be retired the more the taxpayers will save in in- terest and the easier it will be to secure funds with which to prosecute needed running expenses, construc- tions, and improvements.. This, itenr of $820,000,000 for interest is a heavy charge on all the people of the coun. try, and it seems to me that we might well consider whether {t 1s not greatly worth while to dispense with it as early as possible by re- tiring the principal debt which it ts required to serve. It has always been our policy to retire our debts. That of the Revo- lutionary war period, notwithstand- ing the additions made in 1812, was paid by 1835, and the Civil War debt within 23 years. Of the amount already paid ,over $1,000,000,000 is a reduction in cash balances. That source is exhausted. Over one and two-thirds billions of dollars was derived from excess receipts. Tax reduction eliminates that. The sale of surplus war~materials has been another element of our income. That is practically finished. With “these eliminated, the reduction of the debt has been only about, $500,000,000 each year, not-an excessive gum on fo large a debt. Proposals ‘have been made to: ex- tend the payment over a period of 62 years. If $1,900,000,000 is’ paid at the end of twenty years, the cost to the taxpayers the principal and, if the interest 1s 4% per cent, a total of $1,850,000,000. If the same sum is paid at the end of 62 years the cost 1s $3,635,000,000, or almost double. Here is another con- {der Compared with fis pur- 13, the dollar we lue of our d foen due to the falling pri the of commod- our debt In- risen to 63% 3 be required arly twice the amount of commodities to pay his debt if the dollar returns to the 1918 value. The mere we pay while prices lugh, the easler {t will be. burden now Deflation of government after 4 od is slower than deflation e where curtailment 19 either prompt and effective or dis aster follows. There 1s room for further economy in the cost of the federal government, but a compart von of current expenditures with prewar expenditures is not unfav. orable to the efficiency with which government business is now being done. The expenditures of 1916, the last pre-war year, were $742.00,000 and in 1925 over $3,500,000,000, or nearly five times as great. If we subtract expenditures for dekt re tirements and interest, veterans’ re Uef, increase of pensions, and other special outia consisting of re funds, trust tnvestments, and Ike charges, we find that the general expenditures of the government tn 1925 were slightly more than twice as large as in 1916 As prices in 1 were approx! mately 40 per cent higher than {n $16, the cost of the, same govern ment must also have increased. But the government {te not the same. It is more expensive to collect ¢ mueb er revenu ya ‘ ninister our ¢ \' ave given enlarged and tm; services to agriculture ar. merce. Above all, Ameri grown In popu and Government exper “1 Ways share in this grow! Tatts into count the (actors | liave mou tioned, I believe that present federal expenses are not far out of line with pre-war expenses. We have nearly accomplished the deflation. This does not mean that further economies will not come. As we re- duce our debt our Interest charges decline. There are many details yet to correct, The real {mprovement. however, must come not from. addl- tional curtailment of expenses, but by a more Intelligent, more ordered spending. Our economy must be con- structive. While we should avoid as far as possible increases in perma- nent current ' expenditures, often: umes a capita! outlay like Internal provements will result in actual constructive saving. That is econ- omy fn Its best sense, It is an avoid- ance of waste that there may be the means for an outlay today which will bring. larger returns tomor- row. We should constantly engage in Scientific studies of our future requirements and adopt an orderly program for thelr service. Economy is the method by which we prepare today to afford the Improvements of tomorrow. Budget A mere policy of economy with- out any instrumentalities for put- ting it into operation would be very ineffective. The congress. has wise- ly set up the bureau of the budget to investigate and inform the Pres!- dent what recommendations he ought to make for current appro- priations, This gives a centralized authority where a general and com- prehensive understanding can be reached of the sources of income and the most equitab’e distribution of expenditures. How well it hag worked {s indicated by the fact that the departmental estimates for 1922, before the budget law, were $4,068,- 000,000 while the budget estimates for 19p7 are §3,156,000,000. This lat- ter figure shows the reductions in departmentad estimates for the com- ing year made possible by the oper- ation of the budget system that the congress hag provided. But it is evidently not enough to have care in making appropriations without any restraint upon expen- diture. The congress has provided that check by establishing the of- fice of comptroller general. The purpose of maintaining the budget director and the comptroler | weneral is to secure economy and| efficiency {n government expendi: | ture. No better method has been} devised for the accomplishment of | that end. These offices can not be} administered in all the various de- tai’s without making some errors both of fact and of judgment. But the important consideration remains that these are the instrumentalities | of the congress and that no other plan has ever been adopted which was so successful in promoting eco- nomy und efficiency. The congress hag absolute authority over the ap- propriations and Is free to exercise its judgment, as the evidence may | warrant, in increasing or decreas. ing budget recommendations. But | it ought to resist every effort to} weaken or break down this most beneficial system of supervising ap- propriations and expenditures, Taxation The purpose of reducing expendi: | tures is to secure a reduction in) taxes. That purpose is about. to be} realized. With commendable prompt- ness the ways and means commit- tee of the house has undertaken in advance of the meeting of tie con- gress to frame a revenue act. AS the bill has proceeded through the committe> '* has taken on a non- partisan character, and both repub- licans and democrats have joined in a measure which embodies niany sound principles of tax reform. The bill wil correct substantially the economic defects injected into the revenue act of 1924, as well as many which have remained as war-time legacies. In its present form it should provide suffileent revenue for the government. The excessive surtaxes haye been reduced, estate tax rates are re- stored to more reasonable figures, with. every prospect. of withdrawing from. the field when the states have had ‘the opportunity to correct the abuses in their own Inheritance tax laws, the gift tax and publicity sec- tion are to be repealed, many mis- cellaneous taxeg are lowered or aban- doned, and the board of tax appeals and the administrative features of the law are improvedand strength- ened. I approve of the bill in prin- In so far as income tax ex- it seems to na8 gone as far as fe tosgo,and somewhat fur] an I shou'd have gone. Any | extension along these ine Id, in my opinion, tmpaiy the Integrity of our income® tax sys- am advised that the bill will be through the house by Christrhas. For this prompt action the country can thank the good sense of the Ways and meang committee {n fram- ing an economic measure upon eco- nomic considerations. If this atti- tude continues to be reflected through the congress, the taxpayer will have his relief by the time his March 15th installment f income taxes ts due, Nonpartisan effort means certain quick action, 'De- termination of a revenue law defi- nitely, promptly and solely as a revenue law, 1s one of the greatest gifts a legislature can bestow upon its"constituents. I commend the ex- ample of the ways and means com mittee. If followed, it will place sound legislation upon the books tn time to give the taxpayers the ful> benefit of tax reduction next year This means that the bill should} reach me prior to March 15, All these economic results are be- ing sought not to benefit the rich, but to benefit the people. ‘They are for thé purpose of encouraging {n- dustry in order that employment may be plentiful, They seek to make business good in order that wages may be good. ‘They encournge pros qerity in order that poverty may be banished from the home. They seek to lny the foundation which, through ‘oevensed production, may give the neople 2 more bountiful supply of | necessaries of Mfe, afford more} visure for the improvement of the ind the appreciation of the arts ’ mule and Mterature. sculpture 4 patntnt and the beneficial en: t sports and rec- large the resources which minister to charity and by all these means attempting to strengthen the spiritual Ife of the nation. Foreign Relations ‘The policy of our foreign relations, casting aside any suggestion of force, rests sole'y on the foundation of peace, good will, and good works. We have sought, in our Intercourse with other nations, better under: standings through conference and exchange of views as befits beings endowed with reason. The results have been the gradual elimination of disputes, the settlement of con- troversies, and the establishment of a firmer friendship between America and the rest of the world than has ever existed at any previous time. The example of this attitude has not been without {ts influence upon other countries, Acting upon {t. an adjustment was made of the diff- cult problem of reparations. This was the second step toward peace in Europe. It paved the way for the agreements” which were drawn up at the Locarno conference. When ratified, these will represent the third step toward peace. While they do not of themse'ves provide an economic rehabilitation, which {s y for the progress of Eu- by ‘strengthening the guaran- of peace they diminish the need for great armaments. If the energy which now goes into military effort is transferred to productive en: deavor, it will greatly assist eco- nomic progress. The Lorarno agreements were made by the European countries di- rectly Interested without any formal intervention of America, although on July 3 TI publicly advocated such agreements In an address made in Massachusetts, We have cons's- tently refrained from intervening except when our help haw been sought and we have felt {t could be effectively given, as the settle- ment of reparations and the Lon- don conference. These recent Lo- ca Agreements represent the suc- cess of this po'ley which we have been Insist'ng ought.to be adopted. of having European conutries rettle their own politteal problems with- out involving this country. This beginning seems to demonstrate that policy fs sound. It is exceed: rratifving to observe this ss, which both, In {ts method nd in its result promises so much t is beneficial to the world. When th agreements are final- ly adopted, they will provide guar- antles of peace that make the pres- t prime reliance upon force {n © parts of Europe very much necessary. The natural corol- lary to these treaties should be fur- ther international contracts for the limitation of armaments. ‘This worl: was successfully begun at the Wash- ington conference. Nothing was done at that time concerning land rees because of European objec- tion, Our standing army has been reduced to around 118000 about the necessary police force for 115,000 000 people. We are not proposing to increase ft, nor is it supposable that any foreign country looks with the slightest misapprehension upon our nd forces. They do not menace anyhody. They are rather a pro- teetion to everybedy. , The question of disarm!ng upon land Is so pecullarly European in its practical aspects that our country would look with particular gratitude upon any action which those coun: tries might take to reduce thelr own Che Casper Daily Eribune which {t rests in the establishment of The Hague Court of Arbitration: ; It ts that tribunal which nreminates the judges who are elected by the Council and Assembly of the League of Nations. The proposal submitted to the senate evas made dependent upon four ‘conditions, the first of which ig that by supporting the court we do not assume any obligatiéns under the. league; second,’ that we may Participate upon an equality with other states in the election of judge third, that the congress shall deter- mine what part of ‘the expenses we shall bear; fourth, that the statute creating the court shall not be amended without our consent; and to these Ihave proposed an additional condition to the effect that we are hot to be bound by advisory cpinions rendered without'our consent, The court appears to be independ- ent of the league, It !s true the Judges are elected by the assembly and council, but they are nominated by the court of arbitration, which we assisted to create and of which we are a part. The court wns created by a statute. so-called, which. {s real- ly a treaty made among some forty- elght different countries, that might properly be called a constitution of the court. This statute provides a method by which the juzses are chosen, so that when the Court of prabeiats AN nominates them and the assembly and gouncil of the league elect themmithey are not actingsa Instruments of the court of urbitra- tion or instruments of the league, but as instruments of the statute, This will be, even more apparent if our representativés sit with the members of tHe council/and assem- bly In electing’ the judges. It is true they are paid through the league though not by the league, but by the countries which are members of the league and by our country if we ac- cept the protocol, The judges are paid by the league one in the same sense that it could be said United States judges are paid by the con- gress. The court derives all its au- thority from the statute and Is so completely indeperdent of the league that it could go on functioning if the league were disbanded, at least unt{! the terms of the judges expired. The most careful provisions are made in the statute as to the quall- fications of judges. Those who make the nominations are recommended to consult with their highest court of Justice, thelr law schools and acad- emies. The Judges must be persons of high moral’ character, qualified to hold’ the ‘highest judicia}/ offices {n that country) or be jurtsconsults of! recognized competence in tnterna- tional law, » It must be assumed that these requirements will continue to be carefully met, and with America joining the countries already con- cerned It Is aifficult to comprehend how human ingenuity colild better hrovide for the establishment of a court which would maintain its tn- dependence, It has to be recognized that Independence is to a considera- ble extent a matter of ability, char- acter, and personality. Some effort was made In the early beginnings to interfere with the independence of Our supreme court. It did not suc- ceed becauge of the quality of the men who made up that tribunal. It does not seem that the author- ity to: glye -adyisory opinions inter- feres with the Independence of the court. Advisory opinions in and of themselves. are not harmful, but military forces. This is in accord- ance with our poliey of not. inter- vening unless the European powers are unable to agree and make re- quest for our assistance, Whenever they are able to agree of thelr own accord it is especially gratifying to us, and such agreements may be sure of our sympathetic support. It seems clear that it is the re- duction of armies rather than of navies that 1 of the first import- ance to the world at the present time. We shall look with great sat- isfaction upon that effort and give it our approbation and encourage- ment. If that can he settled, we may more ensily consider further re. duction and limitation of naval arm- sthents. For that purpose our coun- try has constantly through tts exec- utive, and through repeated acts of Congress, indicated its willingness to call such a conference, Under congressional sanction {t would/seem to be wise to participate in any cor: ference of the great powers for naval limitation of armament proposed, upon such conditions that {t would hold a fatr promise of being éffective: The general policy of our country {s for disarmament, and “{t ought not to hesitate to adopt any practical plan that might reasonably be ex: pected to suc But it would not care to attend a fonference which from its location ve constituency would In all probability prove futile. In the further pursuit of strength: ening: the bonds of peace, and good will we have joined with other na- tions in an international conference held at Geneva and signed an agree- ment which will be laid before the senate for ratification providing sult- able measures for control and for publicity in {international trade In arms. ammunition, and implements of war. and also executed a protocol providing for a prohibition of the use of polson gas In war, tn accord- ance with the principles of Article 6 of the treaty relating thereto signed at the Washington Conference. We are supporting the Pan American efforts that are belng made toward the codification of International law, and looking with sympathy on the investigations, belng conducted un- der. philanthropie auspices of the proposal to make agreements outlaw: ing war, Tn accordance with prom ises made at the Washington con- ference, we have urged the calling of and are now represented at the Chinese Customs conference and on the commission -on extra territorin}- ity, whére tt will be our pollcy so far as possible to meet the aspira- tions of China in all ways consistent with the interests of the countries involved. Court of International Justice. Pending before the senate for near- ly three years {s the proposal to ad- re@_to the protocol establishing the Permanent Court of International lustice. A well-established tine of precedents mark America’s effort to effect the establishment of a court of this nature. We took a leading part in Iaying tke foundation on may ,be used in such a way to be very beneficial because they under- take to prevent injury rather than merely, afford a remedy after the injury has been done. As a prin- ciple that only implies that the court shall function when reper applica- tion 1s made to it. Deciding the question involved upon issues. sub- mitted for an advisory opinion does not differ materially from de¢‘ding the question involved upon issues submitted by contending parties. Up to the present ‘time the-court h: given’ an advisory opinion when it judged it’ had jurisdiction, and re- fused to give one when i{t*judged it did not ve jurisdiction. Nothing in the work of the court has yet been an} Indication that this ia an impaliment of, its independence or that its practice differs materially from the giving of like opinions un: der the authority of the constitu: tions of our ‘states, No provis‘ons of the statute seems to me to sive. this court any au- thority to be bh’ politfeal rather than a judiclal court: We brought cases in this country before our courts which, when they have been ad- judged to be political, have been thereby dismissed, It ig not im probable that, political questions will be submitted to this court, but again up to the present time the court has refused to pass on political ques- {ions and our support would un- doubtedly _ have a tendency to strengthen it In that refusal. We are not propesing to, subject ourselyes to any compulsory juris- diction. If we. support the court. we can never be oWliged to subnilt any case which involves our inter- ests. for its. decision. Our appear- ance before'{t would always be vol- untary, for the purpose of present: Ing a case which we had agreed might be presented. There is no more danger that others might bring cases before the court involving our Interests which we did not wish to have ‘brought, after we have ad- hered, and probably not, so. much, than there would be of. such cases if I think that we would have \the same legal or moral right to disregard such a finding in the one case that we would In the other, If we are going to support any court, it will not be one that we have set up, alone or which reflect only our {deals, Other nations have thelr customs and thelr institutions, thelr thogbta and thelr methods of life. If a court ts going to he International. {ta comporition will have to yield to what {s good in all these various elements. Neither will 1t be posaible to support a court which {s exactly perfect, or under which we assuthe absoluicly no ob ‘gations. If we are secking that op- portunity, we might well declare that we are opposed to supporting spy court, Tf any, agreement is made, it will be because it under- takes to set up a tribunal which can do some of the things that other nations wish to have dine, We shall not find ourse!ys bearing a divproportionste si: se world’s burdens {n any case. We shall do far better service to ourselves and to others if we admit this and charge our duties voluntarily, than {if we deny ft and are forced to meet the same obligations unwillingly. It is difficult to {magine anything that would be more helpful to the world than stability, tranquility and International justice. We may say that we are contributing to these factors independently, but others less fortunately located do not and can not make a like contribution except through mutual cooperation. The old balance of power, mutual alliances, and great military forces were not brought about by any mu- tual dislike for independence, but resulted from the domination of cir- cumstances. Ultimately they were forced on us. Like all others en- gaged in the war whatever we said as a matter of fact we joined an alliance, we became a military pow- er, we impaired our independence. We have more at stake than any one else in avoiding a repetition of that calamity. Wars do not spring into existence. They arise from small incidents and trifilng Irrita- tions which can be adjusted by an international court. We can con- tribute greatly to the advancement of our ideals by joining with other nations in maintaining such a tri- bunal. Forelgn Debts Gradually, settlements have been made which provide for the liquida- tion of debts due to our government from’ foreign gpyernments. Then made with Great Britain, Finland. Hungary, Lithuan'a, and Poland have already been approved by the congress. Since the adjournment, further agreements have been, en- tered into with Belgium. Czechoslo- vakia, Latvia, Esthonia, Italy and Rumania. These eleven nations, which have already made. settle- ments, represent $6 419,528,641. of the original princtpal of the loans. ‘The principal sums with- 000,000; Liberia, $26,000; Russia, $192,000,000, which those at present in contro] have undertaken openly to repudiate; Nicaragua, $84.000. which ts 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 an independent nation. In accordance with the settle- ments made the amount of principal and interest which ig to be patd to the United States under these ngree- ments aggregates $15.200,688,253.93. Tt is obvious that the remaining set- tlements, which will undoubtedly be made, will bring this sum up to an amount which will more-than equal the principal due on our present na- tional debt. While these settlements are, very large in the aggregate. It has been felt that the terms granted were in all) cases very generous. They impose no undue burden and are mutually beneficial in the ob- servance of international falth and the improvement of international credit. ‘ Every reasonable effort will be ‘| made to secure agreements. for liq- uidation with the remaining coun- tries, whenever they are in such condition that they can be made, Those which have already been ne- gotiated under the bipartisan com- mission established by the congress have been made only after the most thoroughgoing and pairistaking in- vestigation, continued for a long tlme. before meeting with the rep- resentatives of the countriea con- cerned. It is be'eved that they rep- resent in each instance the beat that can be-done and the wisest gettle- ment that ctn be secured. One very important resuit is the stabilization ot foreign currency, making- ex change assist rather than embarrass our trade,, Wherever sacrifices have been made of money, it will be more than amply returned in better un- derstanding and friendship, while in so far-as these adjustments will contribute to the financial stability of the debtor countries, 'to their good order, prosperity and progrsse. they represent hope of improved trade relations and mutual contributions to the civilization of the world. ¢* > Alien Property - ‘Negotiations are | progressing among’ the interested ‘parties In re- lation to: the final distribution of the’assets in the hands of the alien property custodian, Our government and people are interested. as credi- tors; the German government and people are interested as debtors and owners of the seized property. -Pend- ing the outcome of these negotlations Ido not recommend any affirmative legislation. “For ‘the present we should continue in possession of this property which we hold as se- curity for the settlement of claims due to our people and) our govern: ment, € Immigration While not. enough time, has elipsed to afford a conclusive dem- onstration, such results as ‘e been secured indicate’ that, our. Immigra- tion law Is on the evhole beneficial. It ts undoubtedjy a protection to the wage earners of ‘this. country, The situation should, however, be carefully surveyed,-in-order to as- certain whether it 1s working a need- lest hardship upon our own inhabl- tants. If it deprives them of the comfort and society of those bound to them by close family ‘tles, such riodifications should be adopted as will afford relief, always in accord- ance with the principle that our government owes Its first duty to our people and that no allen, in- habitant of another country, has any jegal rights whatever under our constitution and laws, It ts only through treaty, or through residence here, that such rights accrue. But we should not, however, be forgetful of the obligation of a common hu- manity, While our country numbers among its best’ citizens many of those of foreign birth, yet those who now enter in violation of our lawe by that very act thereby place them. selves In nm clase of undesirables, If investigation reveals that any. coa- alderabie number are coming here tn defiance of our immigration restric: tions, it will undoubtedly create the necessity for the registration of all aliens, We ought’ to have no preju- dice against an alien because Le isan allen. The standard which we apply to our inhabitants Is that of man- hood, not. place of birth. Restric- tive immigration {s to‘a-large de- gree ‘for economic purposes. It 1s pplied In order thnt we may not. have a larger annual Increment. of good people within,our borders than Ws can weave into our economic fabric in*such a way as to supply thelr needs without undue injury to ourselves, National Defense Never before In tlme of peace has our country maintained so large and effective a military force as it now has. The Army, navy, marine corps, national guard, and organized reserves represent a strength of about 558,400 men, These forces are well trained, we!l equipped, and high in morale, A sound selective service act giv- ing broad authority for the, mobill- zation In time of petil of all the re- sources of the country, both persons and ‘materials, is needed to perfect our defens've policy in accorCance with our ideals of equality. provision for more suitable housing to be paid for out of funds derived from the sale of excess lands, pend- ing before the last congress, ought to be brought forward and passed; Reasonable replacements ought to be made to maintain a sufficient ammunition reserve. The navy has the full treaty ton- nage of capital ships. Work ts going forward in modernizing the older ones, building aircraft car- riers, additional fleet submarines, and fast scout cruisers, but we are carefully avoiding anything that might be construed as a competition ii, armaments with other nations. The joint army and navy mafeuvers at Hawaii, followed by the cruise of a full bat! fleet to Australia and New Zealand, were successfully car- ried out. These demonstrations re- vealed a most satisfactory condition of the ships and the men engaged, Last year at my suggestion the general soard of the navy made an investigation and report on the re- lation of aircraft to warships. As a@ result authorization and ypro- priations were made for more scout cruisers and fleet submarines and for completing aircraft carriers and equipping them with “necessary planes. Additional training In evia- tion was begun at the military and naval academies. A method of co- ordination and co-operation of the army and navy and the. principal alreraft builders is being perfected. At the suggestion of the secretar- jen of war and navy I appointed a epecial board té make a further study of the problenr of aircraft, ‘The report of the Air Board ought to be reassuring to the country, gratifying to the service and satlas- factory to the Congress. It is thor: oughly complete and represents the mature thought of the best talent in the country. No radical change In organization of the service seems necessary. The Departments of War, Navy, and Commerce should cneh be provided with an #* utional uesistant secretary, not neeossarily with statutory duties but who would be nvailable under the direction of the Secretary to give especial atten- tlon to alr navigation. We must have an a'r strength worthy of America. Provision should be made for two additional brigadier generals for-the Army Air Service. Tempo- rary rank corresponding to their duties should be awarded to active flying officers in both Army and Navy. Aviation {s of great importance both for national defense and. com- mercial development. We ought to Proceed in its improvement by the necessary experiment and investiga- tfon. Our country 1s not behind tn this art. It has made records for speed and for the excellence of its planes. It ought to go on main- taining its manufacturing . plants capable of rapid production, giving national assistance to the laying out of airways, equipping itself ‘vith a moderate number of planes, and keeping an alr force trained to the highest efficiency, ‘While I am a thorough believer in national defense and entirely com- mitted to the policy of dequate preparation, Tam just as thor uchiy opposed to instigating or participat- ing in a policy of competitive arma- ments. Nor does preparation mean a policy of mitilarizing. Our people and industries are solicitous for the cause of our country, and have great respect for the Army and Navy and for the uniform worn by the men who stand ready at all times for our protection to encoun- ter the dangers and perils necessary to military service, but all of these activities are to be taken not In be- half of aggression but in behalf of peace, They are the instruments by which we undertake to do our- part to promote good will and support stability among all peoples. Veterans, 2 ' If any one desires to estimate the esteem in which the veterans of America are held by their fellow clu- tens, {t is but necessary to remem- ber that the current budget calls for an expenditure of about $656.- 000,000 In their behalf. This ts nearly the amount of the total cost of the national government, exclusiy the postoffice, before we entered the lart war, At the two previous sessions of congress legislation affecting vet- erans’ relief was enacted and the law lUberalized. This legislation brought into being a number of new provisions tending more nefrly to meet the needs of our veterans, as well as afford the necessary author- | ity to perfect the administration of] beer declining, there laws. Experience with the new legisla tion so far has clearly demonstrated {ts constructive nature. It has in- creased the benefits received many and has made eligible for bene- (its many, others, Direct disburse- ments to the yeteran or his depend- ants exceeding $21,000,000 have ro sulted, which otherwise would not] real importance. have been made. The degree of uttl- {zation of our hospitals has increased | more than a firat-cl through making facilities available | yet it has been discursed {: to the incapacitated veteran regard- leas of service origin of the disabil- by | « lative echanges Which you will’ con- sider, but until the new law and the modifications made at the last ses- sion’ of congress are given a more thorough test further changes In the basic law should be few. and made only after careful, though sympa- thetic consideration. The principal work now before the Veterans’ Bureau is the perfec: tion of its organization and further improvements in service. Some mi- nor législative changes are deemed necessary to enable the bureau to rétain that high grade of professional talent essential in handling the Problems of the bureau, Such changes as tend toward the tm- provement of service and the carry- ing forward to compfétion of the hospital construction program are recomended for the consideration of the proper committees of con- ress. With the enormous outlay that. ts now being made in behalf of the veterang and thelr dependents, with @ tremendous war debt still requir- ing great annual expenditure, with the still hich rate of taxation, while every provision should be made for the relief of the disabled and the necessary care of dependents, the congress may well consider whether the financial condition of the govern- ment is not such that further boun- ty through the enlargement of gen- eral pensions and other emoluments ought not to be postponed. Agriculture, No doubt the position of agricul: ture as a whole has yery much im- proved since the depression: of three ‘and four years ago. But there are many localities and many groups of Individuals, apparently through no fault of. thelr own, sometimes due to climatic conditions and sometimes to the prevail{ng price of a certain crop, still in a distressing condition. This ts probably temporary. but {t Is mone the less acute, Natfonal Government agencies; the Depart- ments of Agriculture and Commerce, the Farm Loan Board, the tnterme- diate credit banks, and the Federal Reserve Board are all co-operating to be of assisinnce and rellef. On the other hand, there are localities and individuals who have had one of their most prosperous yeurs. T°¢ sereral price level {s fair, but here again there are exceptions both ways, some items being poor while others are excellent. In spite of a lessened production the farni Income for'this year will be about ‘he same as last year and: much above the three preceding years. Agriculture {s'a very com;ilex. in- dustry. It does not consist of one problem, bAt of several, They cin not be solved at one stroke They have to be met in different wavs, and smail galing are not to be de- spiced. It has appeared from all the, {n- vestications that I have heen able to make that the farmers as a whole are determined to maintain the In- dependence of thelr business. They do not wish to have meddling on the nart,of the Government or to be placed under the Inevitable re- strictlors involved in any system of direct or indirect price-fixing, which would result from permitting the Government to operate in the agri- cultural markets, They are show- ing a -very commendable skill in organizing. themselves to transact their_own business through co-opera- tive marketing, which will th's year turn over about $2,500,000,000. or nearly one-fifth of the total agricul- tural business. In this they are re- ceiving help from the Government. The Department of Agriculture should be strengthened in this facility, in. order to be able to re- spond when these marketing asso- clations want help. While it ought not to undertake undue regulation. it should. be equipped to give prompt information on crop prospect: yup ply. demand, current receipt: ports. exports, and prices: A bill embodying three principles, which Has been drafted under the alyice and withthe approval of substantially all the leaders and managera in the <o-operative move- rert, will be presented te the Con- giesn for its snactment, “Legisin- fon should alec he considered to provide for leastyz the unappro- printed public domain for grazing purposes and adopting a uniform policy relative to’ grazing ‘on the public lands and in the national forerte, A more intimate relation should be established between agriculture and the other business activities of the nation. They are mutually de- pendent and can each advance their own prosperity most by advancing the prosperity of the other. Mean time the government will continue those activities which have resulted in an unprecedented amount of leg- isfation and the pouring out of great sums of money during the last five yenrs. The work “for good roads. better land and water trans- portation, increased support for ag- credit facilities through extension of credit faciiities through the farm loan boards and: the intermediate credit banks, the encouragement of orderly marketing and a repression teful speculation, will all be continued, . ‘ Following every other depression, after short period jthe price cf farm produce has taken and main- tained the lead tn the advance, This advance had reached a climax be- fore the war, Everyone will recall th» discussion that went on for four or five years prior to 1914 concern- in; the high cost of Iving. ‘This history { apparently beginning to repeat Itself, While wholesale prices. of other commodities have farm prices have been Increasing. ‘There fs every rea- son to suppose that a new era In ag. ricultural prosperity lies just before which will probobly be unprec- ented, Muscle Shoals The problem of Muscle Shoals seems to me to have ansumed a place all out of proportion with its It probably does not represent in market value much hattleship, n the con- gress over a period of yeara and for n.onths ata time, It ought. to be ity, This new legislation also has| developed for the production of ni brought about a marked {mprove-| trates primarily, and ineldentally for ment of service to the veteran, Power purposes, Thin would serve , The organizations of ex-service | defensive, agricultural, and indus- men have pronpsed additional legis- © trial’ purposes. Y'am {n faver of TUESDAY; DECEMBER 8, 1925 $$ FULL TEXT OF MESSAGE DELIVERED BY PRESIDENT disposing of this property to meet these purposes, The Cindings of the special commission will be’ transmit. ted to the congress for thelr {nfor- mation. [ am convinced that th best possible disposition can be made by direct authorization of t’e con. gress. As a means of negotiation I recommend the immediate appoint. ment of a small joint special com. mittee chosen from the appropriate general standing committees of the house and senate to receive bids, which when made should be reperted with recommendations as to ‘accep. tance, upon which a law’ should be enacted, effecting a sale to the ‘hi, est bidder who will agree to carry out these purposes. If anything were needed to demon- strate the almost utter incapacity of the national government to dea directly with an industrial and cor meridal- problem, !t has been prc vided by ‘our experlence with this property, We have expended yast fortunes, we have taxed everybody, but we are unable to secure results which benefit anybody. This proper- ty ought to be transferred to pr management under conditions which will dedicate {t to the public pur. pose for which it was conceived. Reclamation, ‘The national government is com mitted to a policy of reclamation and \_ trrigation which it desires to/estab- lsh on a sound basis and continue in the interest of the localities con- cerned. Exhaustive studies have re- cently been made of federal reclama- tion, ‘which haye resulted {tn im- proving the projects and adjusting many difficulties. About one third of the projects 1s In good financla! condition, another third can prob- ably be mnde profitable, while the other third is under unfavorable con- ditions. The congress has already provided for a survey which w soon be embodied in a report. That ought to suggest. a method of re- Uef which will make unnecessary further appeals to the congress, U: less this can be done, federal rect: mation will be considerably retard- ed. With the greatly increased cost of construction and operation, it has become necessary to plan tn ad- vance, by community organization and selective agridulture, methods sufficient to repay these increasing outlays. ‘The huthan and economic inter- esta of the farmer, citizens suggest that the states should be required to exert some effort and assume some responsibility, especially in the {n- timate,, detailed, and difficujt work of securing settlers and developing farms which directly profit them, but.only indirecdly and remotely can retmburse the nation. It is believed that the federal government should continue to be the agency for plan- ning and constructing the great un- derwkings needed to réerulate and bring into use the rivers of the west many of which are interstate in character, but the detailed work of creating agricultural communities and a rural etvilization on the land made ready for reclamation ought to be either transferred to the state in its entirety or made a co-opera- tive effort of the state and federal government. Shipping. The maintenance of a merchant marine {s of the utmost {importance for national’ defense and the service of our commerce. We have a large number of ships engaged in that service. We also have a surplus supply, costly to. care for, which ought to be sold. All the invesit- gations that have been made un- der my direction. and, those which have been prosecuted independent- ly, have reached’ the conclusion that the fleet should be under the direct control of a single executive’ head while the shipping board should ex- ercise {ts judicial! and regulatory functions in accordance with its*or- iginal conception. ‘The report of Henry G. Dalton, a business man of broad experience, with a know!- edge of shipping, made to me after careful investigation, wiil be trans- mitted for the information of the congress, the studies pursued under the direction of the United States chamber of commerce will also be accessible, and added to these will be the report of the rpectal commit- tee of the hous ‘ Ido not advocate the elimination of regional consideration, but it has becbme apparent that, without cen- tralized executive actlon the man agement of th's great. bus‘ness, like the management of any other great business, will flounder in ineapac ity and languish under a. divi ef council, A plain and unmistal able reassertion of th’s princt unffled control, which I ha ways been advised was the inter tion of the congress to apply necessary to incrense the effici of our merchant fleet. Coal ‘The perennfal conflict in the coal! Industry is still going on to the great detriment of the wage earn ers, the owners, and especially t the piblic. With deposits of 1 in this country capable of supp!) Ing Its needs for hundreds of years Inability to manage, and control th! sreat!resource for fhe benefit of s!! concerned 1s very close to a nations! economic failure. It hag been the Subject of repeated invest'gation and retterated recommendation. Yet the Industry seems never to ‘ecepted modern methods of justing differences. between ployers and employees. The indus try could serve the public much bet ter and become subject to a much tore effective method of contro! !f regional consolidations and ‘more freedom tn the formation of mar keting associations, under the st Pervision of the department of com- merce, were permitted, At the present time the national Rovernment has little or no author ity to deal with this vital necess'ty of the Hie of the country. It has permitted {tself to remain so power lese that its only attitude must be humble supplication, Authorit should be lodged with the pres’ and the departments of commerce and labor, giviing them power deal with an emergency. ‘They should be able to appoint temporary boards with authority to. call for witnesses and documents. conciliat* differences, encourage arbitration and In case of threatened searcit exercise control over distribution Making the facts public under thes? ~ (Continued on Pwae Miaw em