Evening Star Newspaper, December 8, 1925, Page 34

" 84 THE EVENING STAR, WASHINGTON, D. U. T'UES‘DAY, DECEMBER 8, 1925. Remarkable Progress and Prosperity of United States Stressed by President LOWER TAXES AND WORLD COURT HAVE FIRST PLACE IN PROGRAM Creation of Division in Agriculture Department to Assist in Co-operative Farmers, in Line With Chicago Speech. (Continued from First Page) except for a necessary public purpose duly authorized by the Constitution. The power over the purse is the power over liberty Ny That is the | limitation within which the Congress can act. How it will proceed within this limitation is always a question of policy. \\!wn the country is prosperous and free from debt, when the rate of taxation for a; is low, opportunity exis um- ing new burdens and undertaking new { enterprises. Such a_condition now prevails only to a limited extent. All proposals for assuming new obliga- tlons ought to be postponed unles they reproductive capital inve: are ave such as are absolutely at this time. We still have an enormous debt of over $20,000,000,- h the interest and sinking e §1.320.000,000. for the Pen: ins’ Bureau on W squirements »priations ind the Vetc e of the Post ly self-sustain- fons for ments, exclusi hich is virtu ought the approp . current vear up to almost $3.100,- 000,000. This shows an_expenditure of to $30 for every inhabitant of our cc r the average family of five it means a tax, difectly or in- lirectly paid, of about $150 for na- 1l purposes alone. The local tax much more, These enormous Ires ou: not to be in- but through every possible iey ought to be reduced. War Debt Less by $6,000,000,000. Only one of these great items can be ultimately extinguished. That is the item of our war debt. Already this has heen reduced by about $6,000,- 600 000, which means an annual sav- e to $250,000,000. st_charge is about s . It would seem to be obvious that the sooner this debt can be retired the more the taxpayers will save in interest and the easler it will be to secure funds with which to prosecute needed running expenses, constructions and improvements. This ftem of $820,000,000 for interest is a 1l the people of the country, and it seems to me that we might well consider whether it is not greatly worth while to dispense with it as early as possible by retiring the principal debt which It is required to heavy charge on serve It has always been our policy to re- tire our deb That of the Revolu- tionary War period, notwithstanding the additions made in 1812, was pald 1835, and the Civil War debt within 3 ve: Of the amount already paid, over $£1,000,000,000 is a reduction in cash balances. That source s ex- ted. Over one and two-thirds bil- llons of dollars was derived from ex- ss receipts. reduction elimi- es that. The sale of surplus war materials has been another element of our income. That is practically fin- ished. With these eliminated, the re- duction of the debt has been only about $300,000,000 each year, not an excessive sum on so large a debt. States Cost to Taxpayers. P'roposals have been made to extend the pavment over a period of 62 years. I £1,000,000,000 is vaid at the end of 20 vears, the cost to the taxpayers is the principal, and if the interest is 41 per cent, a total of $1,850,000,000. If the same sum is pald at the end of 62 vears, the cost is $3,635,000,000, or al- most double. Here is another consid- eration: Compared with its purchas- ing power in 1913, the dollar we bor- rowed represented but 52 cent: As the value of our dollar increases, due 10 the falling prices of commodities, the burden of our debt increases. It has now risen to 6312 cents. The tax- paver will be required to produce nearly twice the amount of commodi- ties to pay his debt if the dollar re- turns to the 1913 value. The more we pay while prices are high, the easier it will be. Deflation of government after a war perfod is slower than deflation of business, where curtailment is either prompt _and effective or disaster fol- Tow: ‘There is room for further econ- omy in the cost of the Federal Gov- ernment, but a comparison of current expenditures with pre-war expendl- tures i{s not unfavorable to the effi- clency with which Government bus ness is now being done. The expendi- tures of 1916, the last pre-war year, were $742,000,000, and in 1925 over $3,500,000,000, or nearly filve times as great If we subtract expenditures for debt retirements and interest, vet- erans’ rellef, increase of pensions and other special outlays, consisting of re- funds, trust investments and like charges, we find that the general ex- penditures of the Government in 1925 were slightly more than twice as large s in 1916, Relative Cost Increases. As prices in 192 were approxi- mately 40 per cent higher than in 1916, the cost of the same Govern- ment must also have increased. But the Government is not the same. It 18 ma expensive to collect the much greater revenue necessary and to ad- minister our great debt. We have given enlarged and improved ser\'!ces! to agriculture and commerce. Above 21, America has grown in population and wealth. Government expenditures must always share in this growth. aking into account the factors I ave mentioned, I believe that present 1] expenses are not far out of h pre-war expenses. We have ccomplished the deflation. does not mean that further economies will not come. As we re. duce our debt our interest charges decline. There are many detalls yet to correct The real improvement, however, must come not from addi- tional curtailment of expenses, but by a more intelligent, more ordered spending. Our economy must be con- structive. While we should avold as far as possible increases in perma- nent current expenditures, oftentimes a capital outlay like internal improve- ments will result in actual construc- tive ving. That is economy in fits best sense. It is an avoldance of aste that there may be the means for an outlay today which will bring larger returns tomorrow. We should constantly engage in scientific studies of our future requirements and adopt an orderly program for thelr service, Jiconomy is the method by which we prepare today to afford the improve- ments of tomorrow. Budget. A mere policy of economy without any instrumentalities for putting it into operation would be very ineffec- tive. The Congress has wisely set up the Bureau of the Budget to investi- gate and inform the President what Fecommendations he ought to make for current appropriations. This 1 2 centralized authority where a gen- eral and comprehensive understand- ing can be reached of the sources of income and the most equitable dis- tribution of expenditures. How well it has worked is indicated by the fact that the departmental estimates for 4 Marketing Asked for 1922, before the budget law, were $4,065,000,000. while the budget esti- mates for 1927 are $3.156,000,000. This latter figure shows the reductions in departmental estimates for the coming year made possible by the operation of the budget system that the Con- gress has provided. But it is evidently not enough to have care in making appropriations without any restraint upon expendl- ture. The Congress has provided that check by establishing the office of controller general. The purpose of maintaining the budget director and the controller general is to_secure economy and effi- clency in Government expenditure. No better method has been devised for the accomplishment of that end. These officgs cannot be administered in all the various details without mak- ing some errors, both of fact and of judgment. But the Important con- sideration remains that these are the Instrumentalities of Congress and that no other plan has ever been adopted which was so successful in promoting economy and efficiency. The Congress has absolute authority over the appro- priations, and is free to exercise its judgment, as the evidence may war- rant, in increasing or decreasing bud. get recommendations. But it ought to resist every effort to weaken or break down this most beneficial system of supervising appropriations and expen- ditures. Without it all the claim of economy would be a mere pretense. Taxation. I The purpose of reducing expendi- tures is to secure a reduction in taxes. That purpose is about to be realized. With commendable promptness the ways and means committee of the House has undertaken in advance of the meeting of the Congress to frame a revenue act. As the bill has pro- ceeded through the committee it has taken on a non-partisan character, and both Republicans and Democrats have joined In a measure which embodies many sound principles ofitax reform. The bill will correct substantially the economy 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 sufficient revenue for the Gov- ernment. ‘The excessive surtaxes have been reduced, estate tax rates are restored to more reasonable figures, with every prospect of withdrawing from the field when the States have had the oppor- tunity to correct the abuses in their own inheritance tax laws, the gift tax and publicity sections are to be re- pealed, many miscellaneous taxes are lowered or abandoned, and the Board of Tax Appeals and the administra- tive features of the law are improved and strengthened. I approve of the bill in principle. In so far as income tax exemptions are concerned, it spems to me the committee has gone as far as it Is safe to go and some- what further than I should have gone. Any further extension along these lines would, in my opinion, impair the integrity of our income tax system. Prompt Action Is Predicted. I am advised that.gh#=bill will be through the House by Christmas. For this prompt action the country can thank the good sense of the ways and means committee in framing an eco- nomic measure upon economic con- siderations. If this attitude continues to be reflected through the Congress, the taxpayer will have his relief by the time his March 15 installment of income taxes is due. Non-partisan ef- fort means certain, quick action. De- termination of a revenue law defi- nitely, promptly and solely as a reve- nue law, is one of the greatest gifts a legislature can bestow upon its con- stituents. I commend the example of the ways and means committee. If followed, it will place sound legisla- tion upon the books in time to give the taxpayers the full benefit of tax reduction next year. This means that the bill should reach me prior to March 15. All these economic results are being sought not to benefit the rich but to benefit the people. They are for the purpose of encouraging industry in order that employment may be pienti- ful. They seek to make business good in order that wages may be good. They encourage prosperity in order that poverty may be banished from the home. They seek to lay the foun- dation which, through increased pro- duction, may give the people a more bountiful supply of the necessaries of life, afford more leisure for the im- provement of the mind, the apprecia- tion of the arts of music and litera- ture, sculpture and painting, and the beneficial enjoyment of outdoor sports and recreation, enlarge the resources which minister to charity and by all these means attempting to strengthen the spiritual life of the nation. | Foreign Relations. I The policy of our foreign relations, casting aside any suggestion of force, rests solely on the foundation of peace, good will and good works. We have sought in our intercourse with other nations better understandings through conference and exchange of views as befits beings endowed with reason. The results have been the gradual elimination of disputes, the settlement of controversies 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 its influence upon other countries. Acting upon it, an adjust- ment was made of the difficult prob- lem of reparations. This was the sec- ond 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 themselves pro- vide an economic rehablilitation, which is necessary for the progress of Eu- rope, by strengthening the guaranties of peace they diminish the need for great armaments. If the energy which now goes into military effort is trans- ferred to productive endeavor, it will greatly assist economic progress. The Locarno agreements were made by the European countries directly in- terested without any formal interven- tion of America, although on July 8 I publicly advocated such agreements in an address made In Massachusetts. ‘We have consistently refrained from intervening except when our help has been sought and we have felt it could be effectively given, as in the settle- ment of reparations and the London conference. These recent Locarno agreements represent the success of this policy which we have been insist- ing out to be adopted, of having European countries settle their own political problems without involving this country. This beginning seems to demonstrate that this policy is sound. Itis exmdlnglmhwmnlg :o observe this progress, n its method and in its result promises 80 much that is beneficlal to the world. ‘When these agreements are finally adopted they will provide guaranties of peace that make the present prime rellance upon force in some parts of Europe very much less necessary. 'he natural corollary to these treaties should be further international con- tracts for the limitation of armaments. This work was successfully begun at the Washington conference. Nothing was done at that time concerning land forces because of European ob- jection. Our standing army has been reduced to around 118,000, about the necessary police force for 115,000,000 people. “We are not proposing to in- crease 1t, nor is it supposable that any foreign country looks with the slight- est misapprehension upon our land forces. They do not menace anybody. They are rather a protection to every- body. The question of disarming upon land is so pecullarly European in its prac- tical aspects that our country would look with particular gratitude upon any action which those countries might take to reduce their own mili- tary forces. This is in accordance with our policy of not intervening un- less the European powers are unable to agree and make request for our assistance. Whenever they are able to agree of their own accord it is especially gratifying to us, and such agreements may be sure of our sym- pathetic support. It seems clear that it is the reduc- tion of armies rather than of navies that is of the first importance to the world at the present time. We shall look with great satisfaction upon that effort and give it our approbation and encouragement. If that can be settled, we may more easily consider further reduction and limitation of naval armaments. For that purpose our country has constantly through its Executive and through repeated acts of Congress indicated its willingness to call such a conference. Under con- gressfonal sanction it would seem to be wise to participate in any confer- ence of the great powers for. naval limitation of armament proposed upon such conditions that it would hold a fair promise of being effective. The general policy of our country is for disarmament, and it ought not to hesitate to adopt any practical plan that might reasonably be expected to succeed. But it would not care to at- tend a conference which from its lo- cation or constituency would in all Pprobability prove futile. Peace Agreement Signed. In the further pursuit of strength- ening the bonds of peace and good will we have joined with other nations in an international conference held at Geneva and signed an agreement which will be laid before the Senate for ratification providing suitable measures for control and for pub- licity in international trade in arms, ammunition and implements of war, and also executed a protocol providing for a prohibition of the use of poison gas In war, in accordance with the principles of article 5 of the treaty relating thereto signed at the Wash- ington conference.” We are support- Ing the pan-American efforts that are being made toward the codification of international law, and looking with sympathy on the investigations being conducted under philanthroplc aus- pices of the proposal to make agree- ments outlawing war. In accordance with promises made at the Washing- ton conference, we have urged the calling of and are now represented at the Chinese customs conference and on the commission of extrater: torfality, where it will be our policy 8o 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 nearly three years is the proposal to adhere to the protocol establishing the Per- manent Court of International Justice. A well established line of precedents mark America's effort to effect the establishment of a court of this na- ture. We took a leading part in lay- ing the foundation on which it rests in the establishment of The Hague Court of Arbitration. It is that tribu- nal which nominates the judges who are elected by the Council and Assem- bly of the League of Nations. The proposal submitted to the Sen- ate was made dependent upon four conditions, the first of which is that by supporting the court we do not sume any obligations under the league; second, that we may participate upon an equality with other states in the election of judges; third, that the Con- gress shall determine 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 I have proposed an additional condition to the effect that we are not to be bound by ad- visory opinions rendered without our consent. The court appears to be independent of the league. It {s true the judges are elected by the assembly and coun- cil, but they are nominated by the Court of Arbitration, which we as- sisted to create and of which we are a part. The court was created by a statute, so-called, which is really a treaty made among some 48 different countries, that might properly be called a constitution of the court.” This statute provides a method by which the judges are chosen, so that when the Court of Arbitration nominates them and the assembly and council of the league elect them they are not acting as instruments of the Court of Arbitration or instruments of the league, but as instruments of the statute. Not Paid by the League. This will be even more apparent if our representatives sit with the mem- bers of the council and assembly in electing the judges. It is true they are pald through the league though not by the league, but by the coun- tries which are members of the league and by our country if we accept the protocol. The judges are paid by the league only in the same sense that it could be sald United States judges are pald by the Congress. The court de- rives all its authority from the statute and {s so completely independent of the league that it could go on func- tioning if the league were disbanded, at least until the terms of the judges expired. The most careful provisions *are made in the statute as to the qualifi- cations of judges. Those who make the nominations are recommended to consult with their highest court of justice, their law schools and acad- emies. The judges must be persons of high moral character, qualified to hold the highest judicial offices in that country, or be jurisconsults of recog- nized competence in International law. It must be assumed that these re- quirements will continue to be care- fully met, and with America joining the countries already concerned it is difficult to comprehend how human ingenuity could better provide for the establishment of a court which would maintain its independence. It has to be recognized that independence is to a considerable extent a matter of abllity, character and personality. Some effort was made in the early beginnings to interfere with the inde- pendence of our Supreme Court. It did not succeed because of the quality of the men who made up that tribunal. View of Advisory Opinions. It does not seém that the authority to give advisory opinfons interferes with the independence of the court. Advisory opinions in and of them- selves are not harmful, but may be used in such a way as to be very bene- ficlal because they undertake to pre- vent injury rather than merely afford a remedy after the injury has been done. As a principle that only im- plies that the court shall function when proper application is made to it. Deciding the question involved upon issues submitted for an advisory opin- ion does not differ materially from declding the question {nvolved upon issues submitted by contending par- ties. Up to the present time the court has given an advisory opinfon when it judged it had jurisdiction, and re- fused to give one when it judged it did not have jurisdiction. Nothing in the work of the court has yet been an indication that this is an impairment of its independence or that its prac- tice differs materially from the giving of like opinions under the authority of the constitutions of several of our States. No provision of the statute seems to me to give this court any authority to be a political rather than a judicial court. We have brought cases in this country before our courts which, when they have been adjudged to be politi- cal, have been thereby dismissed. It is not_improbable that political ques- tlons will be submitted to this court, but again up to the present time the court has refused to pass on political questions, 'and our support would undoubtedly have a tendency to strengthen it in that refusal. We are not proposing to subject ourselves to any compulsory jurisdic- tion. If we support the court, we can never be obliged to submit any case which involves our interests for its decision. ~ Our appearance before it would always be voluntary, for the purpose of presenting a case which we had agreed might be presented. There is no more danger that others might bring cases before the court in- volving our interests which we did not to have brought, after we have adhered, and probably not so much, an there would be of bringing such cases If we do not adhere. I think that we would have the same legal or moral right to disregard such a find- ing in the one case that we would in the other. Other Nations Considered. If we are going support any court, it will not be one that we have set up alone or which reflects only our ideals. Other nations have their customs and their institutions, their thoughts and their methods of life. If a court is going to be interna- tional, its composition will have to vield to what is good in all these various elements. Neither will it be possible to support a court which is exactly perfect, or under which we assume absolutely no obligations. It we are seeking that opportunity, we might as well declare that we are op- posed to supporting any court. If any agreement is made, it will be be- cause it undertakes to set up a tribunal which can do some of the things that other nations wish to have done. We shall not find ourselves bearing = disproportionate share of the world's burdens by our adher- ence, and we may as well remember that there is absolutely no escape for our country from bearing its share of the world's burdens in any case. We shall do far better service to our- selves and to others if we admit this and discharge our dutles voluntarily, than if we deny it and are forced to meet the same obligations unwill- ingly. It is difficult to imagine anything that would be more helpful to the world than stability, tranquility and international justice. We may say that we are contributing to these fac- tors independently, but others less for- tunately located do not and cannot make ‘a like contribution _except through mutual co-operation. The ol balance of power, mutual alliances and €reat military forces were not brought about by any mutual dislike for inde- pendence, but resulted from the domi- nation of circumstances. Ultimately they were forced on us. Like all others engaged in the war, whatever we sald, as a matter of fact we joined an alllance, we became a military power, we impaired our independence. ‘We have more at stake than any one else in avoidiing a repetition of that calamity. Wars do not spring Into existence. They arise from small in. cidents and trifling {irritations which can be adjusted by an international court. We can contribute greatly to the advancement of our ideals by join- ing with other nations in maintaining such a tribunal. Foreign Debts. Gradually settlements have been made which provide for the liquida- tion of debts due to our Government from foreign governments. Those made with Great Britain, Finland, Hungary, Lithuania and Poland have already been approved by the Con- gress. Since the adjournment fur- ther agreements have been entered into with Belglum, Czechoslovakia, Latvia, Esthonia, Italy and Rumania. These 10 nations, which have already made settlements, represent $6,419,628,- 641 of the original principal of the loans. The principal sums without in- terest still pending are the debt of France of $3,340,000,000; Greece, $15,- 000,000; Jugoslavia, $51,000,000; Li- beria, $26,000; Russia, $192,000, 000, which those at present in con- irol have undertaken openly to repu- diate; Nicaragua, $84,000, which is be- ing paid currently, and Austria, $24,- 000,000, on which by act of Congress a moratorium of 20 years has been granted. The only remaining sum is $12,000,000, due from Armenia, which has now ceased to exist as an inde- pendent nation. X In accordance with the settlements made, the amount of principal and interest which is to be paild to the United States under these agreements aggregates $15,200,688,253.93. It is obvious that the remaining settle- ments, 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 im- pose no undue burden and are mutu- ally beneficial in the observance of international faith and the improve- ment of international credit. Pledges to Obtain Settlements. Every reasonable effort will be made to secure agreements for liquidation with the remaining countries when- ever they are in such condition that they can be made. Those which have already been negotiated under the bi- partisan commission established by the Congress have been made only after the most thoroughgoing and painstaking investigation, continued for a long time before meeting with the representatives of the countries concerned. It is belleved that they represent in each instance the best that can be done and the wisest set- tlement that can be secured. One very important result is the stabilization of foreign currency, making exchange assist rather than embarrass our trade. Wherever sacrifices have been made of money it will be more than amply returned in better understand. Our Stock of Wahl Pens and Ever- sharp Pencils is most complete Columbia Photo Supply Co. 1424 New York Ave. N.W. Christmas Cards ing and friendship, while in so far as these adjustments will contribute to the financial stability of the.debtor countries, to thelr good order. pros- perity and progress, they represent hope of improved trade relations and mutual contributions to the civiliza- tion of the world. Alien Property. Negotlations are progressing among the interested parties in_ relation to the final distribution of the assets in the hands of the alfen property custo- dian. Our Government and people are interested as creditors; the German govepnment and people’are interested as debtors and owners of the seized Pending the outcome of these negotiations, I do not recom- mend any affirmative legislation. For the present we should continue in pos- session of this property, which we hold as security for the settlement of claims due to our people and our Government. property. Immigration. ‘While not enough time has elapsed to afford a conclusive demonstration, such results as have been secured in- dicate that our Immigration law Is, on the whole, beneficlal. It is un- doubtedly a -protection to the wage earners of this country. The situa- tion should, however, be carefully surveyed, in order to ascertain whether it is working a needless hard- ship upon our own inhabitants. If it deprives them of the comfort and so- clety of those bound to them by close family tles, such modifications should be adopted as will afford relief, always in gecordance with the principle that our Government owes {ts first duty to our own people, and that no alien, in- babitant of another country, has any legal rights whatever under our Con- stitution and laws. It is only through treaty or through residence here that such rights accrue. But we should not, however, be forgetful of the obli- gations of a common humanity. ‘While our country numbers among its best citizens many of those of for- eign birth, yet those who now enter in violation of our laws by that very act thereby place themselves in a class of undesirables. If investigation reveals that any considerable number are coming here in defiance of our immi- gration restrictions, it will undoubtedly create the necessity for the registra- tion of all aliens. We ought to have no prejudice against an alien because he is an alien. The standard which we apply to our inhabitants is that of manhood, not place of birth. Restric- tive immigration is to a large degree for economic purposes. It i{s applied in order that we may not have a larger increment of good people within our borders than we can weave Into our economic fabric in such a way as to supply thelr needs without undue in- jury to ourselves. National Defense. Never before in time of peace has our country maintained so large and effective a_ military force as it now has. The Army, Navy, Marine Corps, National Guard and Organized Re. serves represent a strength of about 558,400 men. These forces are well trained, well equipped and high in morale. A sound selective service act giving broad authority for the mobilization in time of perii of all the resources of the country, both persons and mate- rials, is needed to perfect our defen- Gift sive policy in accordance with our ideals of equality. The provision for more suitable housing, to be paid for out of funds derived from the sale of excess lands, pending before the last Congress, ought to be brought forward and passed. Reasonable replacements ought to be made to maintain a suffi- clent ammunition reserve. The Navy has the full treaty ton- nage of capital ships. Work is going forward in modernizing the older ones, building aircraft carriers, additional fleet submarines and fast scout cruis- ers, but we are carefully avoiding anything that might be construed as a competition in armaments with other nations. The Jjoint Army and Navy maneuvers at Hawail, followed by the cruise of a full battle fleet to Australia and New Zealand, were suc- cessfully carried out. These demon- strations revealed a most satisfac- tory condition of the ships and the men engaged. Relation of Aircraft to Warships. Last year at my suggestion the Gen- eral Board of the Navy made an in- vestigation and report on the rela- tlon of aircraft to warships. ASs a re- sult, authorizations and appropria- tions were made for more scout cruis- ers and fleet submarines and for com- pleting aircraft carriers and equipping them with necessary planes. Addi- tional training in aviation was begun at the Military and Naval academies. A method of co-ordination and co-op- eration of the Army and Navy and the principal afrcraft builders is be- ing perfected. At the suggestion of the Secretarfes of War and Navy, I appointed a special board to make a turther study of the problem of air- craft. The report of the Air Board ought to be reassurinig to the country, grati- tying to the service and satisfactory to the Congress. It is thoroughly complete aand represents the mature thought of the hest talent in the country. No radical change in organi- zation of the service seems necessary. The departments of War, Navy and Commerce should each be provided with an additional assistant secre. tary, not necessarily with statutory duties, but who would be available under the direction of the Secretary to give especial attention to air navi- gation. We must have an air strength worthy of America. Provision should be made for two additional brigadier generals for the Army Air Service. Temporary rank corresponding to their duties should be awarded to ac- tive flying officers in both Army and Navy Aviation Held of Importance. Aviation 18 of great importance both for national defense and commercial development. We ought to proceed in its improvement by the nece: v experiment and investigation. has made records for s the excellence of its planes. It ought to go on maintaining its manufactur- ing plants capable tlon, giving national assistance to the laying out of airways, equipping it- self with a moderate number of planes and keeping an air force trained to the highest efficiency. While I am a thorough believer in national defense and entirely commit- ted to the policy of adequate prepara- tion, T am just as thoroughly opposed of rapid produc- to_instigating or participating in a policy of competitive armaments. Nor does” preparation mean a policy of militarizing. tries are our countr: Our people and indus- olicitous for the cause of and have great respect 3 and for the uniform worn by the men who stand ready at all times for our protection to encounter the dangers and perils necessary to mil POWER IN COAL EMERGENCIES IS REQUESTED FOR EXECUTIVE Ratification of War Debt Settlements, Reorganiza- tion of Departments and Birect Sale of Muscle Shoals Are Among Recommendations. of these activities are to be taken not in behalf 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 sta- bility among all peoples. l Veterans. If any one desires to estimate the esteem in which the veterans of Amer- Ica are held by their fellow citizens, it is but necessary to remember that the current budget calls for an expendi- ture of about $650,000,000 in their be- half. This is nearly the amount of the total cost of the National Govern- ment, exclusive of the post office, be- fore we entered the last war. At the two previous sessions of Congress legislation affecting veterans' relief was enacted and the law lib- eralized. This legislation brought into being a number of new provisions tending more nearly to meet the needs of our veterans, as well as afford the necessary authority to perfect the ad- ministration of these lats. Experience with the new legislation 8o far has clearly demonstrated its constructive nature. It has increased the benefits received by many and has made eligible for benefits .many others. Direct disbursements to the veteran or his dependernts exceeding $21,000,000 have resulted, which other- wise would not have been made. The degree of utilization of our hospitals has increased through making facili- ties available to the incapacitated vet- eran, regardless of service origin of the disability. This new legislation also has brought about a marked im- provement of service to the veteran. The organizations of ex-service men have proposed additional legislative changes which you will consider, but until the new law and the modifica- tions made at the last session of Con- gress are given a more thorough test further changes in the basic law should be few and made only after careful though sympathetic consid- eration. Principal Work of Bureau Cited. The principal work now before the Veterans' Bureau is the perfection of its organization and further improve- ments in service. Some minor legis- lative changes are deemed necessary to enable the bureau to retain that high grade of professional talent es- sential in handling the problems of the bureau. Such changes as tend toward the improvement of service and the carrying forward to comple- tion of the hospital construction pro- gram are recommended for the con- sideration of the proper committees of Congress. With the enormous outlay that is now being made in behalf of the vet- erans and their dependents, with a tremendous war debt still requiring great annual expenditure, with the still high rate of taxation, while every provision should be made for the re- lief of the disabled and the necessary care of dependents, the Congress may well consider whether the financial condition of the Government is not such that further bounty through the ervice, but allenlargement of general pensions and gestions from the | be_strengthened in other emolmuments ought not to he postponed. Agrioulture. No doubt the position of agricultura as a whole has very much improved since the depression of three and four years ago. But there are many locali tles and many groups of individuals apparently through no fault of their own, sometimes due to climatic con ditions and sometimes to the ~vevail- ing price of a certain crop, still in a distressing condition. This is proh- ably temporary, but it is none the less acute. Natlonal Government agencies, the Department of Agriculture and Commerce, the Farm Loan Board, the intermediate credit banks and the Federal Reserve Board are all co operating to be of assistance and re- lief. On the other hand, there are localities and individuals who have had one of thelr most prosperous years. The general price level is fair, but here again there are exceptions both ways, some items being poor while others are excellent. In s of a lessened production, the farm come for this vear will be about the same as last vear and much above the three preceding years. Agriculture is a very complex in- dustry. It does not consist of one problem but of several. They canno be solved at one stroke. They have to be met in different ways, and small Eains are not to be despised. It appeared from all the inves tions , that I h e been able to make that the farmers as a whole are determined to maintain the independ ence of their business. They do not wish to have meddlinig on the purt of the Government or to be placed under the inevitable restrictions involved in any system of direct or indirect price fixing, which would result from per mitting the Government to operate in the agricultural markets. Commendable Skill Developed. They are showing a very commend able skill in organizing themselves to transact their own business throuzh co-operative marketing, which will this year turn over about $2,500.000. 000, or nearly one-fifth of the al agricultural business. In this they : receiving help from the Government The Department of Agriculture this_facil order to be able to respond when th rketing associations want While it ought not to undertake due regulation, it should be cquipped to give prompt information on crop prospects, supply, demand, current re ceipts, imports, exports and prices A bill embodying these principles which has been drafted under the ad vice and with the approval of stantially all the leaders and mar agers in the co-operative movement will be presented to the Congress f its enactment. Legislation should a be considered to provide for leas the unappropriated public domain for grazing purposes and adopting a uni form policy relative to gr on the public lands and in the national forests. " N i (Continued on Page Thirty-five) Eversharp counter This miniatni " $it ) % Desk Set! A Wahl fountain pen ‘soldmounted. crystalovjet gless; as shown, only $12; with gold-flled Wi Pen . . 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