Evening Star Newspaper, December 3, 1924, Page 4

Proposals for Domestic Legislation Cover Wide Range. HE present state of the Union, upon which it is customary for the Presi- dent to report to the Congress under the provisions of the Constitutlon, is such that it may be regarded with encour ment and satisfaction by every America Our country is almost uniquée in fis ab ¥ to discharge fully and promptly all its ot ions at home and abroad, and pro- vide for all its inhabitants an increase in material resources, in intellectual vigor and in moral power. T Natlon holds a position unsurpuassed in 1 former human experience. This does not mean that we do not have any probleins. It is elementary that the Incre ing bres h of our experience necessarily in- creascs the problems of our national life. But it docs mean that if we will but apply our s industriously and honestly, we have ample powers with which to meet our prob- lems and provide for their speedy solution. I do not profess that we can secure an era of perfection in human existence, but we can provide an era of peace and prosperity, ;Al». tended with freedom and justice and made more and yre satisfying by the ministra- tions of the arities and humanities of life. Our domestic problems are for the most part economic. We have our enormous debt to pay. and we are paying it. We have the high cost of Government to diminish, and we are diminishing it. We have a heavy burden axation to reduce, and we are reducing ¢ remarkable progress has been made directions, the work is yet far from Led. We still owe over $21,000.080 cost of the National Government is (hout $3.500,000,000, and the nations mount to about $27 f each e ibitants. There vet exists this enornious field-for the application of econom PN e TR R Y ECONOMY IN EXPENDITURE BEST REMEDY. in my opinion the Government can do more to remedy the economic ilis of the peoble by a system of rigid economy In public ex- penditure than can be accomplished through any other action The costs of our national and local governments combined now stand at & sum close to $100 for each inhabitant of the land A little less than one-third of this is represented by national expenditure, and a little more than two-thirds by local ex penditure. It is an ominous fact that only the National Government Is reducing its debt. Others are increasing theirs at about $1,000,- 000,000 cach vear. The depression that over- took busin . the disaster experienced in agriculture, the lack of employment and the terrific sirinkage in all values which our country experienced in a most acute form in 1820 resulted in no small measure from the prohibitive taxes which were then levied on 81l productive effort. The establishment of a ystem of drastic economy in public ex- penditure, which has enabled us to pay off ebout one-fifth of the national debt since 1919, &nd almost cut in two the national tax bur- den since 1921, has been one of the main causes In re-establishing a prosperity which has come to clude wi n its benefits almost every one of our inhabitants. Economy reaches everywhere. It carries a blessing to every- bods. The fallacy of the claim that the costs of government are borne by the rich and those who make a direct contribution to the National Treasury cannot be too often ex- posed. No system has been devised, I do not think any system could be devised, under which any person living in this country could escape being affected by the cost of our gov- ernment. It has a direct effect both upon the rate and the purchasing power of wages. It is felt in the price of those prime neces- sites of existence, food, clothing, fuel and shelter. It would appear to be elementary that the more the Government expends the more it must require every producer to con- tribute out of his production to the public treasury, and the less he will have for his own benefit. The continuing costs of publ administration can be met in only one way— by the work of the people. The higher they become, the more the people must work for the Government. The less they are, the more the people can work for themselves, The present estimated margin between public receipts and expenditures for this fiscal year is very small. Perhaps the most im- portant work that this session of the Con- gress can do Is to continue a policy of econ- omy and further reduce the cost of govern- ment, in order that we may have a reduction of taxes for the next fiscal year. Nothing is more likely to produce that public confidence which is the forerunner and the mainstay of prosperity. encourage and enlarge business opportunity with ample opportunity for em- ployment at good wages, provide a larger market for agricultural products, and put our country in a stronger position to be able to meet the world competition in trade, than a continuing policy of economy. Of course necessary costs must be met, proper functiong of the Government performed, and constant investments for capital account and repro- ductive effort must be carried on by our various departments. But the people must know that their Government is placing upen them no unnecessary burden. Every one desires a reduction of taxes, and there is a great preponderance of senti- ment in favor of taxation reform. When I approved the present tax law, I stated publicly that 1 did so in spite of certain provisions which I believed unwise and harmful. One of the most glaring of these was the making public of the amounts assessed against dif- ferent income tax pavers. Although that damage has now been done, I believe its con- tin ion to be detrimental to the public wel- fare and bound to decrease public revenues, so that it ought to be repealed. Anybody ecan reduce taxes, but it is not 20 easy to stand in the gap and resist the passage of increasing appropriation bills which would make tax reduction impossible. It will be very easy to measure the strength of the attachment to reduced taxation by the power with which increased appropriations are resistes. If at the close of the present gession the Ccngress has kept within the bud- get which I propose to present, it will then be possible to have a moderate amount of tax reduction and all the tax reform that the Congress may wish for during the next fiscal gear. The country is now feeling the direct stimulus which came from the passage of the ‘last revenue bill, and under the assurance of s reasonable system of taxation there is every prospect of an era of prosperity of unprece- dented proportions. But it would be idle to expect any such results umless business can continue free from excess profits taxation and be accorded a System Of surtaxes at rates which have for their object not the punish- v THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, bECEMBER 3, 1924, ext of President Coolidge’s Annual Message to the Congress Farm Relief, Tax Cut, on Program ment of success or the discouragement of business, but the production of the greatest amount of revenue from large incomes. 1 am convinced that the larger incomes of the country would actually yleld more revenue to the Government if the basls of taxation were scientifically revised downward. More- over the effect of the present method of this taxation is to increase the cost of interest on productive enterprise and to increase the burden of rent. It is altogether likely that such reduction would so encourage and stim- ulate investment that it would firmly estab- lish our country in the economic leadership of the world. l WATERWAYS. l Meantime our internal development should g0 on. Provision should be made for flood control of such rivers as the Mississippl and the Colorado, and for the opening up of our inland waterw s to commerce. Con- sideration Is due to the project of better nav- igation from the Great Lakes to the Gulf. Every effort is being made to promote an agreement with Canada to build the St Lawrence waterw . There are pending be- for the Congre: bills for further develop- ment of the Misslssippi Basin, for the taking over of the Cape Cod Canal in accordance with a moral obligation which seems to have been incurred during the war, and for the fmprovement of harbors on both the Pacific and Atlantic Coasts. While this last should be divested of some of its projects and we must proceed siowly, these general have my approval. Such works are roductive of wealth and in the long r tend to a re- duction of the tax burden. ‘ RECLAMATION. Our country has a well defined policy of reclamation established under statutory au- thority. This policy should be continued and made a self-sustaining actlvity administered fn a manner that will meet local requirements and bring our arid lands into a profitable state of cultivation as fast as there is a market for their products. Leglislation is pending based on the report of the Fact ¥Find- ing_Commission for the proper relief of those needing extension of time in which to meet Uieir payments on irrfigated land. and for ad- ditional amendments wnd reforms of our rec- lamation laws, which are all exceedingly im- portant and should be enacted at once. ‘ AGRICULTURE. No more important development has taken ce in the last year than the beginning of a restoration cf agricultur: to a prospero condition. We must permit no diviston of classes in this country, with one occupation striving to secure advantage over another. Each must proceed under open opportunities and with a fair prospect of economic equality. The Government fcannot successtully insure prosperity or fix prices by legislative flat. Every business has its risk and its times of depression. It is well known that in the long run there will be a more even prosperity and a more satisfactory range of prices under the matural working out of economic laws than when the Government undertakes the arti- ficial support of markets and industries. Still we can o order our affairs, So protect our own people from foreign competition, so arrange our national finances, so administer our mone- tary systems, so provide for the extension of credits, so improve methods of distribution, as to provide a better working machinery for the transaction of the business of the Nation with the least possible friction and loss. The Government has been constantly increasing its efforts in these directions for the relief and permanent establishment of agriculture on a sound and equal basis with other business. It is estimated that the value of the crops for this harvest year may reach $13,000,000,000. which is an increase of over $3,000,000,000 in three years. It compares with $7,100,000,000 in 1913, and if we make deduction from the figures of 1924 for the comparatively decreased value of the dollar, the yield this year still exceeds 1913 in purchasing power by over $1.000,000,000, and in this interval there has been no increase in the number of farmers. Mostly by his own effort the farmer has de- creased the cost of production. A marked in- erease in the price of his products and some decrease in the price of his supplies has brought him about to a parity with the rest of the Nation. The crop area of this season is estimated at 370,000,000 acres, which Is a decline of 3,000,000 acres from last year, and 6,000,000 acres from 1919. This has been a normal and natural application of economic laws, which has placed agriculture on a foundation which is undeniably sound and beginning to be satisfactory. WORLD SUPPLY OF WHEAT DROP! A decrease in the world supply of wheat has resulted in a very large increase in the price of that commodity. The position of all agricultural products indicates a better bal- anced supply, but we cannot yet conclude that agriculture is recovered from the effects of the war period or that it is permanently on a prosperous basis. The cattle industry has not yet recovered and in some sections has been suffering from dry weather. Every effort must be made, both by Government activity and by private agencies, to restore and main- tain agriculture to a complete normal rela- tionship with other industries. It was on account of past depression and in spite of present more encouraging con- ditions that I have assembled an agricultural conférence made up of those who are repre- sentatives of this great industry in both its operating and economic sides. Every one knows that the great need of the farmer is markets. The country Is not suffering on the side of production. Almost the entire difficulty is on the side of distribution. This reaches back, of course, to unit costs and diversification, and many allled subjects. It is exceedingly intri- cate, for our domestic and forelgn trade, transportation and banking, and in fact our entire economic system are closely related to it. In time for action at this session, I hope to report to the Congress such legisla- tive remedies as the conference may recom- mend. An appropriation should be made to de- fray their necessary expenses. I MUSCLE SHOALS. l The production of nitgrogen for plant food in peace and explosives in war Is more and more important. It is one of the chief sustain- ing elements of life. It Is estimated that soil exhaustion each year is represented by about 4,000,000 tons and replenishment by 5,450,000 tons. The deficit of 3,550,000 tons is reported to represent the impairment of 118,000,000 acres of farm lands each year. WOULD CONTINUE SHOALS PLANT. To meet these necessities the Government has been developing a water power project at Muscle Shoals to be equipped to produce nitro- gen for explosives and fertilizer. It is my opinion that the support of agriculture is the chief problem to consider in connection with this property. It could by no means supply the present needs for nitrogen, but it would help, and its development would encourage bringing other water powers into like use. Several offers have been made for the purchase of this property. Probably none of them represent final terms. Much costly ex- perimentation is necessary to produce com- mercial nitrogen. For that reason it is a fleld better sulted to private enterprise than to Government operation. I should favor a sale of this property, or long-time lease under rigid guarantles of commercial nitrugen pro- High Lights in President’s Message Wfi: have our enoromus debt to pay, and we are paying it.° We have the high cost of government to diminish, and we are diminishing it. We have a heavy burden of taxation to reduce, and we are reducing it. In my opinion the government can do more to remedy the economic ills of the people by a system of rigid economy in public expenditure than can be accomplished through any other action. Economy reaches everywhere. It carries a blessing to everybody. I am convinced that the large incomes of the country would actually yield more rev- enue to the government the basis of taxation were scientifically revised downward. The government cannot successfully insure prosperity or fix prices by legislative fiat. Every one knows that the great need of the farmer is markets. .The country is not suffering on the side of produc bution. Almost the entire difficulty is on the side of distri- Amending the Railroad Labor Board provisions will not meet the requirements of the situation unless it recognizes the principle that the public has a right to uninterrupted serv- ice of transportation. The immediate requirement of the merchant marine is to transfer into the Emergency Fleet Corporation the whole responsibility of operation of the fleet and other property, leaving to the Shipping Board solely the duty of determining certain major policies which require deliberative action. We have been constantly besought to engage in competitive armaments. Frequent reports will reach of the magnitude of the military equipment of other nations. We shall do well to be little impressed by such reports or actions. Any nation undertaking to maintain a military establishment with aggressive and imperialistic designs will find itself severely handicapped in the economec development of the world. I believe thor- oughly in the Army and Navy, in adequate defense and preparation. But I am opposed to any policy of competition in building and maintaining land or sea armaments. I want the armed forces of America to be considered by all peoples, not as enemies, but as friends, as the contribution which is made by this country for the maintenance of the peace and security of the world. Ultimately nations, like individuals, cannot depend upon each other, but must depend upon themselves. Each one must work out its own salvation. While we desire always to co-operate and help, we are equally determined to be independent and free. I believe it would be for the advantage of this country and helpful to the stability of other nations for us to adhere to the protocol establishing the World Court. I want the people of the earth to see in the American flag the symbol of a Govern- ment which intends no oppression at home and no oppression abroad. e e duction at reasonable prices for agricultural use. There would be a surplus of power for many years over any possibility of its ap- plication to a developing manufacture of nitrozen. It may be found advantageous to dispose of the right to surplus power separate- Iy with such reservations as will allow its gradual withdrawal and application to nitro- gen manufacture. A subcommittee of the committees of agriculture should investigate this field and pegotiate with prospective pur- chasers. If no advantageous offer be made, the development should continue and the plant should be dedicated primarily to the produc- tion of materials for the fertilization of the soil. RAILWAYS. The railwayvs during the past year have made still further progress in recuperation from the war, with large gains in efficlency and ability expeditiously to handle the traffic of the country. We have now passed through several periods of peak traffic without the car shortages which so frequently in the past have brought havoc to our agriculture and industries. The condition of many of our great freight terminals is still one of dif- ficulty and results in imposing large costs on the public for inward-bound freight, and on the railways for outward-bound freight. Ow- rg to the growth of our large cities and the great incrase in the volume of traffic, par- ticularly in perishables, the problem is not only difficult of solution, but in some cases not wholly solvable by railway action alone. In my message last year I emphasized the sity for further legislation with a view ing the consolidation of our rail- ways into larger systems. The principle of Government control of rates and profits, now thoroughly imbedded in our governmental at- titude toward natural monopolies such as the railways, at once eliminates the need of com- petition by small units as a method of rate adjustment. Competition must be preserved as a stimulus to service, but this will exist and can be increased under enlarged systems. Consequently the consolidation of the raflways into larger units for the purpose of securing the substantial values to the public which will come from larger operation has been the logi- cal conclusion of Congress in its previous enact- ments, and is also supported by the best opin- fon in the country. Such consolidation will assure not oniy a greater element of competi- tlon as to service, but it will afford economy in operation, greater stability in railway earn- ings, and more economical financing. It opens large possibilities of better equalization of rates betyeen different classes of traffic so as to re- lieve undue burdens upon agricultural products and raw materials generally, which are now not possible without ruin to small units owing to the lack of diversity of traffic. It would also tend to equalize earnings in such fashion as to reduce the importance of section 15A, at which criticism, often misapplied, has been directed. A smaller number of units would offer less diffi- cultles in labor adjustments and would con- tribute much to the solution of terminal diffi- culties. WOULD GUARD PUBLIC IN CONSOLIDATION. The consolidations need to be carried out with due regard to public interest and to the rights and established life of various communities in our country. It does not seem to me necessary + we endeavor to anticipate any final plan or adhere to any artificial and unchangeable project which shall stipulate a fixed number of systems, but rather we ought to approach the problem with such a latitude of action that it can be worked out step by step in accordance with a comprehensive consideration of public interest. ‘Whether the number of ultimate systems shall be more or less seems to me can only be deter- mined by time and actual experience in the de- velopment of such consolidations, Those portions of the present law contemplat- ing consolidations are not sufficiently effective in producing expeditious action and need ampli- fication of the authority of the Interstate Com- merce Commission, particularly in affording a period for voluntary proposals to the commis- sion and in supplying Government pressure to secure action after the expiration of such a period. There are other proposals before Congress for amending the transportation acts. One of these contemplates a revision of the method of valua- tion for rate-making purposes to be fol- lowed by a renewed valuation of the railways. The valuations instituted by the Interstate Commerce Commission 10 years ago have not yet been completed. They have cost the Government an enormous sum, and they have imposed great expenditure upon the rail- ways, most of which has in effect come out of the public in increased rates. This work should not be abandoned or supplanted until its results are known and can be considered. Another matter before the Congress is legis- lation affecting the labor sections of the trans- portation act. Much criticism has been directed at the workings of this section, and experience has shown that some useful amendment could be made to these provisions. It would be helpful if a plan could be adopted ‘which, while retaining the practice of systematie collective bargaining with conciliation and vol- untary arbitration of labor differences, could also provide simplicity in relations and more direct local responsibility of employes and man- agers. But such legislation will not meet the requirements of the situation unless It recog- nizes the principle that the public has a right to the uninterrupted service of transportation and therefore a right to be heard when there is danger that the Nation may suffer great in- jury through the interruption of operations be- cause of labor disputes. If these elements are not comprehended in proposed legislation, it would be better to gain further experience with the present organization for dealing with these questions before undertaking a change. SHIPPING BOARD. The form of the organization of the Shipping Board was based originally on its functioas as a semi-judicial body in regulation of rates. Dur- ing the war it was loaded with enormous ad- ministrative duties. It has been demonstrated time and again that this form of organization results in indecision, division of opinion and administrative functions, which make a wholly inadequate foundation for the conduct of a great business enterprise. The first principle in se- curing the objective set out by Congress in building up the American merchant marine upon the great trade routes and subsequently disposing of it into private operation cannot proceed with effectiveness until the entire func- tions of the board are reorganized. The imme- diate requirement is to transfer into the Emer- gency Fleet Corporation the whole responsibility of operation of the fleet and other property, leaving to the Shipping Board solely the duty of determining certaln major policies which re- quire deliberative action. The procedure under section 28 of the mer- chant marine act has created great difficul and threatened friction during the past 12 months. Its attempted application developed not only great opposition from exporters, par- ticularly as to burdens that may be imposed upon agricultural products, but also great anxiety in (he different seaports as to the effect upon their relative rate structures. This troubls will certalnly recur if action is attempted under this section. It is uncertain in some of its terms and of great difficulty in interpretation. It s my bellef that action under this section should be suspended until the Congress can re- consider the entire question in the light of the experience that has been developed since its enactment. NATIONAL ELECTION:! Nothing is so fundamental to the integrity of a Republican form of government as honesty in all that relates to the conduct of elections. I am of the opinion that the national laws gov- erning the choice of members of the Congress should be extended to include appropriate rep- resentation of the respective parties at the bal- lot box and equality of representation on the various registration boards, wherever they exist. THE JUDICIARY The docket of the Supreme Court is becom- ing congested. At the opening term last year it had 592 cases, while this year it had 687 cases. Justice long delayed Is justice refused. TUnless the court be given pewer by prelimi- nary and summary consideration to determine the importance of cases and by disposing of those which are not of public moment reserve its time for the more extended consideration of the remainder, the congestion of the docket is likely to increase. It is also desirable that the Supreme Court should have power to im- prove and reform procedure in shits at law in the Federal courts through the adoption of ap- propriate rules. The judiciary committee of the Senate has reported favorably upon two bills providing for these reforms which should have the immediate favorable consideration of the Congress. I further recommend that provision be made for the appointment of a commission, to con- sist of two or three members of the Federal judiciary and as many members of the bar, to examine the present criminal code of procedure and recommend to the Corfgress measures which may reform and expedite court procedure in the administration and enforcement of our criminal laws. " PRISON REFORM. . Pending before the Congress is a bill which has already passed one houss providing for a reformatory to which could be committed first offenders and young men for the purpose of segregating them from contact with hardened criminals and providing them with special train- ing, in order to re-establish in them the power to pursue a law-abiding existence in the soclal and economic life of the Nation. This is a mat- ter of so much importance as to warrant the early attention of the present session. Fur- ther provision should also be made, for a like reason, for a separate reformatory for women. NATIONAL POLICE BUREAU. Representatives of the International Police Conterence will bring to the attention of the Congress a proposal for the establishment of & national police bureau. Such action would provide a central point for gathering, compll- ing and later distributing to local police au- thorities much information which would be helpful in the prevention and detection of crime. I belleve this bureau is needed, and I recom- mend favorable consideration of this proposal. DISTRICT OF COLUMBIA WELFARE. « The welfare work of the District of Columbia is administered by several different boards deal- ing with charfties and various correctional el- forts. It would be an improvement if this work were consolidated and placed under the direction of a single commission. I FRENCH SPOLIATION CLAIMS. I -During the last session of the Congress legis- lation was introduced looking to the payment of the remaining claims generally referred to as the French spoliation claims. The Congress has provided for the payment of many similar claims. Those that remain unpaid have heen long pending. The beneficiaries thereunder have every reason to expect payment. These claims have been examined by the Court of Claims and their validity and amount determined. The United States ought to pay its debts. I recom- mend action by the Congress which will permit of the payment of these remaining claims. THE WAGE EARNT] Two very important policies have been adopted by this country which, while extending their benefits also in other directions, have been of the utmost importance to the wage earners. One of these is the protective tariff, which en- ables our people to live according to a better standard and receive a better rate of compen- sation| than any people, any time, anywhere=on earth,’ ever enjoyed. This saves the American market for the products of the American work- men. The other is a policy of more recent origin and seeks to shield our wage earners from the disastrous competition of a great in- flux of forelzn peoples. This has been done by the restrictive immigration law. This saves the American job for the American workmen. I should like to see the administrative features of this law rendered a little more humane for the purpose of permitting those already here a greater latitude in securing admission of members of their own families. But I believe this law in principle is necessary and sound, and destined to increase greatly the public wel- fare. We must maintain our own economic position, we must defend our own national in- tegrity. 1t is gratifying to report that tlie progress of industry, the enormous increase in individual product:vity througa iabor-saving devices, and the high rate of wages have all combined to furnish our people in general with such an abundance not only of the necessaries but of the conveniences of life that we are by a natural evolution solvinz our problems of economic and social justice. THE NEGRO. These developments have brought about a very remarkable improvement in the condition of the negro race. Gradually, but surely, with the almost universal sympathy of those among whom they live, the colored people are working out their own destiny. I firmly believe that it 1s better for all concerned that they should be cheerfully accorded their full constitutional rights, that they should be protected from all of those impositions to which, from their posi- tion, they naturally fall a prey, especially from the crime of lynching, and that they should re- ceive every encouragement to become full par- takers in all the blessings of our own common American citizenship. l CIVIL SERVICE. l The merit system has long been recognized as the correct basis for employment in our civil service. I believe that first, second and third class postmasters, and without covering in the present membership the field force of prohibition enforcement, should be brought within the classified service by statute law. Otherwise thg executive order of one administration is changed by the executive order of another ad- ministration, and little real progress is made. Whatever its defects, the merit system is cer- tainly to be preferred to the spoils system. DEPARTMENTAL REORGANIZATION. One way to save public money would be to pass the pending bill for the reorganization of the various departments. This project has been pending for some time, and has had the most careful consideration of experts and the thor- ough study of a special congressional com- mittee. This legislation is vital as a compan- ion piece to the budget law. Legal authority for a thorough reorganization of the Federal structure with some latitude of action to the executive in the rearrangement of secondary functions would make for continuing economy In the shift of Government activities which must follow every change in a developing country. Beyond this many of the independent agencies of the Government must be placed under re- sponsible cabinet officials, if we are to have safeguards of efficiency, economy, and probity. Little has developed in relation to our national defense which needs special attention. Progres is constantly being made in air navigation and requires encouragemet and development. Army aviators have made a successful trip around the world, for which I recommend suitable recogni- tion through provisions for promotion, compen- sation, and retirement. Under the direction of the Navy & new Zeppelin has been successfully brought from Europe across the Atlantic to our own country. Due to the efficient supervision of the Secre- tary of War the Army of the United States has been organized with a-small body of regulars and a moderate National Guard and reserve. The defense test of September 12 demonstrated the efficiency of the operating plans. These methods and operations are well worthy of con- gressional support. Under the limitation of armaments treaty a large saving in outlay and a considerable de- crease in :maintenance of the Navy has been accomplished. We should maintain the policy of constantly working toward the full treaty strength of the Navy. Careful investigation is being made In this department of the relative importance of afrcraft, surface and submarine vessels, in order that we may not fail to take advantage of all modern improvements for our national defense. A special commission also is investigating the problem of petroleum oil for the Navy, considering the best policy to insure the future supply of fuel ofl and prevent the threatened drainage of navil ofl reserves. Legis- lative action is required to carry on experiments in of! shale reduction, as large deposits of this type have been set aside for the use of the Navy. COMPETITIVE ARMAMENT DISCUSSED. We have Been constantly besought to engage in competitive armaments. Frequent reports will reach us of the magnitude of the military equipment of other nations. We shall do well to be little impressed by such reports or such actions. Any nation undertaking to maintain a military establishment with aggressive and imperialistic designs will find itse'f severely handicapped in the economic development of the world. I belleve thoroughly in the Army and Navy, in adequate defense and prepara- tion. But I am opposed to any policy of com- petition in building and maintaining land or sea armaments. Our country has definitely relinquished the Again Urges U. S. Join World €ourt Asks Careful Study of Proposals to Qutlaw Aggressive Warfare. old standard of dealing with other countries by terror and force, and is definitely committed to the new standard of dealing with them through friendship and understanding. This new policy should be constantly kept fn' mind by the gulding forces of the Army and Navy, by the Congress and by the country at large. 1 believe it holds a promise of great benefit to humanity. T shall resist any attempt to resort to the old methods and the old standards. 1 am especlally solicitous that forelgn nations should comprehend the candor and sincerlty with which we have adopted this position. While we propose to maintaln defensive and supplementary police forces by land and sea, and to train them through fnspections and maneuvers upon appropriate occasions in order to maintain their efficlency, 1 wish every other nation to understand that this does not express any unfriendliness or convey any hostile in- tent. 1 want the armed forces of America to be consfdered by all peoples not as enemies but as friends, as the contribution which is made by this country for the maintenance of the peace and security of the world. VETERANS. With the authorization for general hospitali- zation of the veterans of all wars provided dur- Ing the present year, the care and treatment of those who have served their country in time of peril and the attitude of the Government toward them is not now so much one of needed legislation as one of careful, generous and jumane administration. It will ever be recog- nized that their welfare is of the first concern and always entitled to the most solicitous con- sideration on the part of their fellow citizens. They are organized in various associations, of which the chief and most representative is the American Legion. Through its officers the legion will present ‘to the Congress numerous suggestions for legislation. They cbver such & wide variety of subjects that it is impossible to discuss them within the scope of this message. With many of the proposals I join in hearty approval and commend them all to the sympa- thetic investigation and consideration of the Congress. I FOREIGN RELATIONS. At no period in the past 12 years have our foreign relations been in such a satisfactory condition as they are at the present time. Our actions in the recent months have greatly strengthened the American policy of permanent peace with independence. The attitude which our Government took and maintained toward an adjustment of European reparations, by pointing out that it was not a political but a business problem, has demonstrated its wisdom by its actual results. We desire to see Europe restored that it may resume its productivity in the increase of industry and its support in the advance of civilization. We look with great gratification at the hopeful prospect of recu- peration in Europe through the Dawes plan. Such assistance as can be given through the action of the public authorities and of our private citizens, through friendly counsel and co-operation, and through economic and financial support, not for any warlike effort but for re- productive enterprise, not to provide,means for unsound government financing but to establish sound business administration, should be un- hesitatingly provided Ultimately nations, like individuals, cannot depend upon each other but must depend upon themselves. Each one must work out its own salvation. We have every desire to help. But with all our resources we are powerless to save unless our efforts meet with a construc- tive response. The situation in our own coun- try and all over the world is one that can be fmproved only by hard work and self-denial. It is necessary to reduce expenditures, increase savings and liquidate debts. It is in this direc- tion that there lies the greatest hope of domestic tranquillity and international peace. Our own country ought to furnish the leading example in this effort. Our past adherence to this policy, our constant refusal to maintain a mili- tary establishment that could be thought to menace the security of others, our honorable dealings with other nations whether great or small, has left us in the almost constant en- joyment of peace. % It is not necessary to stress the general de- sire of all the people of this tountry for the promotion of peace. It is the leading principle of all our foreizn relations. We have on every occasion tried to co-operate to this end in all ways that were consistent with our proper in- dependence and our traditional policies. It will Se my constant effort to maintain these prin- ciples, and to reinforce them by all appropriate agreements and treaties. While we desire al- ways to co-operate and to help, we are equally determined to be independent and free. Right and truth and justice and humanitarian efforts will have the moral support of this country all over the world. But we do not wish to become involved in the political controversies of others. Nor is the country disposed to become a member of the League of Nations or to assume the obli- gations imposed by its covenant. NTERNATIONAL COURT. America has been one of the foremost nations in advocating tribunals for the settlement of international disputes of a justiciable character. Our representatives took a leading part in those conferences which resulted in the establishment of The Hague Tribunal, and later in providing for a Permanent Court of International Justlice, I believe it would be for the advantage of this country and helpful to the stability of other nations for us to adhere to the protocol estab- lishing that court upon the conditions stated in the recommendation which is now before the Senate, and further that our country shall not be bound by advisory opinions which may be rendered by the court upon questions which we have not voluntarily submitted for its judg- ment. This court would provide a practical and convenient tribunal before which we could g0 voluntarily, but to which we could not be sum- moned, for a determination of justiciable ques- tions when they fail to be resolved by diplo- matic negotiations. DISARMAMENT CONFERENCI Many times I have expressed my desire to see the work of the Washington Conference on Limitation of Armaments appropriately supple- mented by further agreements for a further re- duction and for the purpose of diminishing the menace and waste of the competition in pre- paring instruments of international war. It has been and is my expectation that we might hope- fully approach other great powers for further conference on this subject as soon as the carry- ing out of the present reparation plan as the established and settled policy of Europe has created a favorable gpportunity. But on aec- count pf proposals which have already been made by other governments for a European conference, it will be necessary to wait to see what the outcome of their actions may be. I should not wish to propose or have representa- tives attend a conference which would contem- plate commitments opposed to the freedom of Plate o (Continued on Fifth Page.