Evening Star Newspaper, December 4, 1928, Page 6

| SOURCE OF PROSPERITY HELD INTE Four Tax Reduct Cne-Third in RITY OF PUBLIC ions and Bebt Cited Cut of in tatement to Congress. President Coolidge’s mes: gress today follows “To the Congress of the Unite States “No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which ap- pears at the present time. In the comestic field there is tranquillity and contentment, harmonious relations be- | tween management and wage earner. sreedom from industrial strife, and the highest record of vears of prosperity In the foreign field there is peace, the good will which comes from mutual understanding. and the knowledge that the problems which a short time ago appeared so ominous are yielding tc | the touch of manifest friendship. | “The great wealth created by ou; enterprise and industry, and saved by our economy, has had the widest dis- tribution among our own people, and has gone out in a steady stream tg| serve the charity and the business o. | the world. The requirements of e: tence have passed beyond the standard ssity into the region of luxury. | Fnlarging production is consumed by | an increasing demand at home and an | expanding commerce abroad. Th- | country can regavd the present with satisfaction and ~ullcipate the future with optimism “The main s»iee of these ung pled blessings ##g in the integrity and character of fhe American people. They have hat® great faith. which they have supplemented with mighty works. They have been able to put trust in each other and trust in their Govern- ment. Their candor in dealing with foreign governments has commanded respect and confidence. Yet these re- markable powers would have been ex- | erted almost in vain without the con- | stant co-cperation and careful admin- | istration of the Federal Government. “We have boen coming into a period which mey %e fairly characterized as | a conservaton of our national re- sources Viastefulness in public busi- ness and flvate enterprise has been displaced dy constructive economy. This has been accomplished hy bring- ing our domestic and foreign relations more and more under a reign of law. A rule of force has been giving way tn 2 rule of reason. We have substituted for the vicious circle of increasing ex- penditures, increasing tax rates and diminishing profits the charmed circle ;\I diminishing expenditures, diminish- ng tax rat>s and increasing profits. Many Taxm Reduced And Some Are Abolished. “Four tines we have made a revision of our internal revenue :y?l:fi-c abolishing inany taxes and substantially Teducing almost all others. Eash time the resulting stimulation to business has so increased taxable incomes and prof- its that a surplus has been Pproduced. One-third of the national debt has been Paid, while much, of. the other two- thirds has héen refunded at lower rates, and these savings of interest and con- ;t:flx;t &oxsnogggsml’uve enabled us to re- 3 al roce: redg:t:rns. ving process of more tax “Under this sound and healthful en- couragement the national income has increased nearly 50 per cen:, until it iy estimated 'to stand well ogr $90,000,- 000,000. It has been a “hod which as performed the seeming miracle of lTeaving a much greater i2reentage of earnings in the hands of the taxpayers with scarcely any diminution of the Government ~ revenue. That con- structive economy in the highest degree. It is the corner stone of prosperity. It ~hould not fail to be continued. ‘“This action began by the application of economy to public ‘expenditure. If it is to be permanent, it must be made 5o by the repeated ‘application of econ- omy. There is no surplus on which to base further tax revision at this time. Last June the estimates showed a threatened deficit for the current fiscal year of $94,000,000. Under my direc- tion the departments began saving all they could out of their present appro- priations. The last tax reduction krought an encouraging improvement in business, beginning early in October, which will also increase our revenue. “The ‘combination of economy and good times now indicates a surplus of about $37,000,000. This is a margin of less than 1 per cent on our expenditures and makes it obvious that the Treasury is in no condition to undertake increases in expenditures to be made before June 30. It is necessary, therefore, during the present session to refrain from new appropriations for immediate outlay, or if such are absolutely required to pro- vide for them by new revenue; other- wise we shall reach the end of the yoar with the unthinkable resujt of an un- balanced . budget. For the first time during my term of office we face that contingen I am certain that the Congress would not pess and I should not feel warranted in approving legisla- tion which would involve us in that financial disgrace. Federal Finances Declared Most Satisfactory. “On the whole the finances of the Government are most satisfactory. Last year the national debt was reduced | about $906,000,000. The refunding and | retirement of the second and third Liberty loans have just been brought to a successful conclusion, which wiil save about 875,000,000 a year in interest. | ‘The unpaid balance has been arranged | in maturities con’ nt for carrying out our permanent debt-paying program. “The enormous saving: not been at the expense of any legiti- mate public need. The Governme: plant has been kept up and many im- | provements are under , while its service is fully manned and the gen- eral efficiency of operation has in- creased. W2 have been enabled undertake many new enterprises. Among these are the adjusted compen- sation of the veterans of the World ‘War, which is costing us $112,000,000 a | year; amortizing our liability (o the civil service retirement funds, $20,009 000; increase of expenditures for rivers and harbors, including flood control, | $43,000,000; public buildings, $47,090,000 In 1928 we spent $50.000,000 in the adjusiment of war claims and alien Thesz are examples of a of items. ge to Con- | | 1 | exam- | Peace and Progress in Foreign Relations Seen. n we turn from our domestic ernment I dispatched our Marine forces there 'to protect the lives and interests of our citizens. To compo: the contending parties, I sent the Col. Henrv L. Stimson, former Secre- its eral of the Philippine Islands, who se- cured an agreement that warfare should cease, a naticnal election should b> held and peace should be restored Bota parties conscientiously carried out this agrcement, with the exceptfon of a few bandits, who later mostly sur- rendered or left the country. President Diaz appointed Brig. Gen. Frank R McCoy, United States Army, president of the election board, which included aiso one member of cach political party. ‘A free and fair clection has been heid and has-worked out so_success- fully that both parties have joined i requesting like co-operation from this country at the election four years hence, to which I have refrained from mak- ing any commitments. although our ified at such an exhibition of success and_appreciation. Nicaragua Is regaining its prosperity and has taken a long step in the direc- tion of peaccful self-government. Tacna-Arica Dispute Nearing Final Settlement. “The long-standing erences be- tween Chile and Peru have been suffi- ciently composed so that diplomatic relations have been resumed by the exchange of ambassadors. Negotia- tions -are hopefully proceeding as this is written for the final adjustment of the differences over their disputed terri- tory. Mexico Relations on Satisfactory Ba: “Our relations with Mexico are on a more satisfactery basis than at any time since their revolution. Many mis understandings have been resolved, and the most frank and friendly nego- tiations promise a final adjustment of all unsettled questions. It is exceed- ingly gratifying that Ambassador Mor- row has been able to bring our two neighboring countries, which have so many interests in common, to a posi- tion of confidence in each other and of respect for mutual sovereign rights. Chiness Government Recognized by America. “The situation in China, which a few months” ago was so threatening as to call for the dispatch of a large addi- tional force, has been much composed. The Nationalist government has estab- lished itself over the country and pro- mulgated a new organic law announc- ing a program intended to promote the political and economic welfare of the eople. We have recognized this gov- ernment, encouraged its progress, and have nogotiated a treaty restoring to China complete tariff autonomy and guaranteeing ocur citizens against dis- criminations. Our trade in that quar- ter is increasing and ‘our forces are be- ing reduced. Greek and Austrian Debt Settlement Urged. “Pending before Congress is a recom- mendation for the settlement of the Greek and the Austrian debt. Both of ‘se are comparatively small and our country can afford to be gen- erous. Thé rehabilitation of these coun- tries awaits their settlement. There would also be advantages to our trade. We could scarcely afford to be the only nation that refuses the relief which Austria secks. The Congress has al- ready granted Austria a long-time mo- ratorium, which it is understood will be waived and immediate payments begun on her debt on the same basis which we have extended to other countries. Kellogg Treaty Held Important Step. “One of the most important treaties ever laid before the Senate of the United States will be that which the 15 nations recently signed at Paris, and ciared their intention to adhere, re- nouncing war as a national policy and agreeing to resort only to peaceful means for the adjustment of Interna- tional differences. It is the most solemn declaration against war, the most positive adherence to peace. that it is possible for sovercign nations to make. It does mot supersede our in- alienable sovereign right and duty of national defense or undertake to com- mit us before the event to any mode of action which the Congress might decide to be wise if ever the treaty should be broken. Put it is a new standard in the world around which can rally the informed and enlightened opinion of nations to prevent their governments from being forced into hostile action by the temporary outbreak of international animosities. The observance of this ward, promises more for the peace of the world than any other agreement cver negotiated among the nations. Need More Cruisers For National Defense. “The first duty of our Government to its own citizens and foreigners within its borders is the preservation of order. Unless and until that duty is met a government is not even eligible . for recognition among the family of na- tions. The advancement of world civ- ilization likewise is dependent upon that order among the people of different countries which we term peace. To insure our citizens against the infringe- ment of their legal rights at home and abroad, to prescrve order, liberty and peace by making the law supreme, we have an Army and a Navy, “Both of these are organized for de- fensive purposes. Our Army could not be much reduced, but does not need to be increased. Such new housing and repairs as are necessary are under way, and the five-year program in aviation is being put into effect in both branches of our service. “Our Navy, according to generally ac- cepted standards, is deficient in cruisers. ‘We have 10 comparatively new vessels, 22 that are old, and 8 to be built. It is evident that renewals and replace- ments must be provided. This matter w thoroughly canvassed at the last on of the Congress and does not {need restatement. The bill before the { Senate with the elimination of the time | clause should be passed. We have no |intention of competing with any other | country. This building program is for | necessary replacements and to meet our I needs for defense. affairs to our foreign relations, we like- se perceive peace and progress. The national Conference of rican States was inter. It contributed to a by the nations. Eleven important conven- tions were signed and 71 resolutions | call for hny increase in the number of | ing scrutiny, so long as our farmers face passed. Pursuant to the then adopted, thi the other 20 nations of this hemispher to a conference on conciliation and arbitration, which meets in Washingt on December 10. All the nations ha accepted and the expectation is justified plan differences by means of arbitration. “During the year we have signed 11 new arbifration treaties, and 22 more are under negotiation. Marin-s Protect Ni ;i Interests. “When a destructive and bloady revo- lution lately broke out in Nicaragua, at e earnest and repeated entreaties of r “The cost of national defense is stu- {pendous. It has increased $118,000,000 {in the past four years. The estimated held at Habana | expenditure for 1930 is $668,000,000. and demand, as a guide to production ter | While this is made up of many items, |and marketing, should be encouraged. ! understanding and co-operation among | it is, after ail, mostly dependent upon | Expenditure of public funds to bring in | | numbers. Our defensive needs do not {men in the Army or the Navy. We Government has invited | have reached the limit of what we stock produced on land already under ught to expend for that purpose. i "I wish to repeat again for the benefit n of the timid and the suspicious that to put land to uses for which it is | thiz country is neither militeristic nor 'adapted. The reforestation of land best | Many people at home that important progress will be made |and abroad who constantly make this in methods for resolving international | charge are the same ones who are even | this end the forest taxation inquiry was jmore solicitous to have us exiend as- |instituted to afford & practical guide for en such assistance is granted the Inevitable imperialistic. sistance to foreign countries. result is that we have foreign interests. For us to refuse the customary support and protection of such interests would b2 in_derogation of the sovereignty of Our largest forelgn inter- Empire, France | eroding. | | this Nation. ests are in the Britis and Italy, to which 44 other nations have de-| covenant, so simple and so straightfor- | Becaus: we arc constantly solicitous for those Interests I doubt if ' v one would suppose that those coun- | tries feel we harbor toward them any militaristic or imperfalistic design. A | for smaller couniries, we_certainly dc not want any of them. We are mor: anxious than they are to have th sovereignty respected. Our entire in- fluence is in behalf of their indepen { aence. Cuba stends as a witness to | xdherence to this principle. “The position of this Government rel- ative to the limitation of armaments the results already sccured and the de velopments up to the present time ar. so well known to Congress that they dc not require any resta. :ent. Veterans' Bureau. | Survey Recommended | “The magnitude of our present sys- tem of veterans’ relief is without prece dent, and the resulls have been far | reaching. For years a service pensior | tary of War and now Governor Gen-| has,been granted to the Grand Arm; | | an | and lately to survivors of the Spanish | American Wer. time we enteres [ the World War however, Congress de- | parted from the usual pension system | followed by our Government. Elever ars have elapsed since our laws werc | first enacted initiating a system of | compensation, rchabilitation, “hospital- | ization and insurapce for the disabled | of the World War and their dependents. | The administration of all the laws con- | cerning relief has been a difficult task, | but it can safely be stated that these | measures have omitted nothing in their | desire {0 deal generously and humanely We should continue to foster this sys | tem and provide all the facilities nec- | essary for adequate care. It is the con- | ception of our Government that the | pension roll is an honor roll. It should | include all those who are justly entitled | to its benefits, but exclude all others. “Annual expenditures for all forms of veterans' relief now approximate $765,000,000, and are increasing from year to year. It is doubtful if the peak of expenditures will be reached even | under presant legislation for some time | | yet to come. Further amendments to the existing law will be suggested by the | American Legion, the Veterans of For- cign Wars of the United States, the Disabled American Veterans of the World War and other like crganizations and it may be necessary for administra- tive purposes or in_ order to remove | some existing_inequalities in the pres- | ent law to make further changes. Iam.| sure that such recommendations as may | be submitted to the Congress will re- | ive your careful consideration. But | e of the vast expenditure now be- ing made each year, with every assur- ance that it will increase, and because of the great liberality of the existing law, the proposal of any additional leg- isiation dealing with this subic~t should receleve most searching scruliny from the Congress. “You are familiar with the suggestion that the various public agencles now dealing with matters of veterans' re- lief be consolidated in one Government department. Some advantages to this plan seem apparent. especially in the simplification of administration and in the opportunity of bringing about a greater uniformity in the applica- tion of veterans’ relief. I recommend that a survey be made by the proper committees of Congress dealing with this subject, in order to determine whether legislation to secure this con- solidation is desirable. Farm Situation Shows Improvement. “The past year has been marked by notable though not uniform improve- ment in agriculture. The general pur- chasing power of farm products and the volume of production have advanc- ed. This means not only further prog- ress in overcoming the price dispar- ity into which agriculture was plunged in 1920-21, but also increased efficiency on the part of farmers and a well grounded confidence in the future of agriculture. R “The live stock industry has attained the best balance for many years and is prospering conspicuously. Dairymen, beef producers and poultrymen are re- ceiving substantially larger returns than last year. Cotton, although lower in price than at this time last year, was produced in greater volume, and the prospect for cotton incomes is favorable. But progress is never uniform in o vast and highly diversified agriculture or industry. Cash grains, hay, tobacco, and potatoes will bring somewhat smaller returns this year than last. Present indications are, however, that the gross farm income will be some- what larger than in the crop year 1927-28, when the total was $12.253,- 000,000. The corresponding figure for 1926-27 was $12,127,000,000, and in 1925-26, $12,670,000,000. Still better re- sults would have been secured this year had there not been an undue increase in the production of certain crops. This is particularly true of potatoes, which have sold at an unremunerative price, or at a loss, as a direct result of overexpansion of acreage. “The present status of agriculture. although greatly improved over that of a few years ago, bespeaks the need of further improvement, which calls for determined effort of farmers them- selves, encouraged and assisted by wise public policy. The Government has becn, and must continue to be, alive mhlhc needs of agriculture, In the past eight years more con- structive legislation of direct benefit to agriculture has been adopted than during any other period. The Depart- ment of Agriculture has been broad- cned and reorganized to insure greater efficiency. The department is laying greater stress on the economic and bus- iness phases of agriculture. It is lend. ing every possible assistance to co. overative marketing associations. Reg- ulatory and research work have been segregated in-order that each field may he“I. 5:?,‘1. I:\u';e effectively. 0 0 strongly comma; the field of fact findigng. lhenll'e?g\'rgg work of the Department of Agriculture 2nd the State experiment stations. The department now receives annually $4.000,000 more for rescarch than in 1921. In addition, the funds paid to the States for exverimentation purposes under the Purnell act constitute an an- nual increase in Federal payments to State agricultural experiment stations of $2,400,000 over the amount appro- priated in 1921. The program of sup- port for research may wisely be con- tinued and expanded. Since 1921 we have appropriated nearly an additional | $2,000.000 for extension work, and this sum is to be increased next year under the authorization by the Capper- Ketcham act. Agricultural Surplus Remedy Held Necessary, “While these developments in funda- | ,mental research, regulation and dis- | jsemination of agricultural information | are of distinct help to agriculture, addi- tional effort is needed. The | problem demands attention. As empha- | \sized in my last message, the Govern- iment should assume no responsibility in normal times for crop surplus clearly {due to overextended acreage. The Gov- | | ernment should, however, provide reli- | !able information as a guide to private {effort, and in this connectiont funda- { mental research on prospective supply | | ye 1 | | more new land should have most search- unsatisfactory prices for crops and live | | cultivation. “Every proper effort should be made | | sulted for timber nroduction is progress- ing and should L en-ouraged, and to | | public policy. Improvement has been made in grazing regulation in the for- est reserves, not only to protect the ranges but to preserve the soil from | erosion. Similar action is urgently needed to protect other public lands which are now overgrazed and rapidly “Temporary expedients, though some- rplus | | JOHN CROCKETT, Reading clerk of the Senate, who read the President’s message to that body today. | | | { | to unwise selection of projects and | times capable of appeasing the demands of the moment, cannot permanently solve the surplus problem and might seriously aggravate it. Hence putting the Government directly into_business, subsidies and price fixing end the allur- ing promises of political action as a substitute for private initiative should be avoided. “The Government should aid in pro- moting orderly marketing and in han- dling surpluses clearly due to weather and seasonal conditions. As a beginning there should be created a Federal farm board consisting of able and experi- enced men empowered to advise ducers’ assoclations in establishing cen- tral agencies or stabilization corpora- tions to handle surpluses, to seck more cconomical means of merchandising, and to ald the producer in securing re- turns according to the quality of his product. A revolving loen fund should be provided for the necessary financing | until these agencies shall have devel oped means of financing their oper: tions through regularly —constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwiss, necessary {0 meet the expense. as the Treasury has no_surplus. ; “Agriculture has lagged behind in- dustry in_achieving that unity of ef- fort which modern economic life de- mands. The co-operative movement, which is gradually huilding the needed organization, is in harmony with pub- lic interest and therefore merits public encouragement. Responsibility Lies Within States’ Sphere. “Important phases of public policy related to egriculture llie within the sphere of the States. While successive reductions in Federal taxes have re- lieved most farmers of direct taxes to the ' National Government, State and local levies have become a serious bur- den. This problem needs immediate and thorough study with a view to cor- rection at the carliest possible moment. It wiil have to be made largely by the States themselves. Commerce Department Contributes to Trade. “It is desirable that the Go\'ernmentl continue its helpful attitude toward | American business. The activities of the Department of Commerce have con- tributed largely to the present satis- factory position in our international trade, which has reached about $9,000,- 000,000 annually. There should be no slackening of effort in that diraction. It is also important that the depart- ment’s assistance to domestic commerce be continued. There is probably no way in which the Government can aid sound economic progress more effectiv 1y than by co-operating with our busi- ness men to reduce wastes in distribu- tion. Progress in Civil Aviation Gratifying. “Continued progress in civil aviation is most gratifying. Demands for air- planes and motors have taxed both the industry and the licensing and inspec- tion service of the Department of Com- merce to their capacity. While the com- pulsory licensing provisions of the air commerce act apply only to equipment and personnel engaged in interstate and foreign commerce, a Federal license may be procured by any one possessing the necessary qualifications. State leg- islation, local airport regulations and insurance requirements make such a license practically indispensable. This results in uniformity of regulation and increased safety in operation, which are essential to aeronautical develop- ment. Over 17,000 young men and women have now applied for Federal air pilots’ licenses or permits. More than 80 per cent of them applied during the past year. “Our national airway system exceeds 14,000 miles in length and has 7,500 miles lighted for night operations. Pro- vision has been made for lighting 4,000 miles more during the current fiscal year. and equipping an equal imileage with radio facilities. Three-quarters of our people are mow served by these routes. With the rapid growth of air mail, express and passenger service, this new transportation medium is daily be- coming a more important factor in commerce. It is noteworthy that this development has taken place without governmental subsidies. Commercial passenger flights operating on schedule have reached 13,000 miles per day. “During the next fortnight this Na- tion will entertain the nations of the world in a celebration of the twenty- fifth anniversary of the first successful airplane flight. The credit for this aking achievement belongs to n of our own country, Orville Wright, Cuban Parcel Post Convention Urged. “I desire to repeat my recommenda- tion of an earlier message that Con- gress enact the legislation necessary to make permanent the parcel post con- vention with Cuba, both as a facility to American commerce and as a meas- ure of equity to Cuba in the one class of goods which that country can send here by parcel post without detriment to our ‘own trade. Maine Battleship Memorial Needs Home. “When I attended the Pan-American Conference at Havana, the President of Cuba showed me a marble statue made from the original memorial that was overturnad by a storm after it was erected on the Cuban shore to the memory of the men who perished in the destruction of the battleship Maine. As a testimony of friendship and ap- preciation of the Cuban government and people he most generously offered to present this to the United States, and I assured him of my pleasure in ac- ’hc-avy a structure, and I therefore urge cepting it. There is no location in the White House for placing so large and the Congress to provide by law for some locality where it can be set up. Railroad Consolidation Request Is Reiterated. “In previous annual messages I have suggested the enactment of laws to promote railroad consolidation with a view of increasing the efficiency of transportation and lessening its cost to the public. While consolidations can and should be made under the present law until it is changed, yet the provisions of the act of 1920 have not been found fully adequate to meet the needs of other methods of consolida- tion. Amendments designed to remedy these defects have been considered at length by the respective committees of Congress, and a bill was reported out late in the last session which I understand has the approval in prin- ciple of the Interstate Commerce Com- mission. It is to be hoped that this legislation may be enacted at an early date. “Experience has shown that the in- terstate commerce law requires defini- tion and clarification in several other respects, some of which have been pointed out by the Interstate Commerce Commission in its annual reports to the Congress. It will promote the public interest to have the Congress give early consideration to the recom- mendations there made. Merchant Marine Cost Shown Reduced. “The cost of maintaining the United States Government merchant fleet has been steadily reduced. We have estab- lished American flag lines in foreign trade where they had never before ex- isted as a means of promoting com- morce and as a naval auxiliary. There have been sold to private American capital for operation within the past few years 14 of these lines, which, un- der the encouragement of the recent legislation passed by the Congress, give promise of continued successful opera- tion. Additional legislation from time to time may be necessary to promote future advancement under private control. “Through the co-operation of the Post Office Department and the Ship- ping Board long-term contracts are be- ing made with American steamship lines for carrying mail, which already promise the construction of 15 to 20 new vessels and the gradual re-establishment of the American merchant marine 8s a private enterprise. No action of the National Government has been so beneficial to our shipping. The cost is being absorbed to a considerable ex- tent by the disposal of unprofitable lines operated by the Shipping Board, for which the new law has made a market. Meanwhile it should be our policy to maintain necessary strategic lines under the Government operation until they can be transferred to private capital. Inter-American Highway Aid Advised. “In my. messaze last year I expressed the view that we should lend our en- couragement for more good roads to all the principal points on this hemi- sphere south of the Rio Grand view has not changed. The Pan-Amer- ican Union has recently indorsed it. In some of the countries to the south a great deal of progress is being made in road building. In others engineering features are often exacting and financ- ing difficult. As those countries enter upon programs for road building we should be ready to contribute from our abundant experience to make their task easier of accomplishment. I prefer not to go into civil ) to accomplish this end. We already furnish military and naval advisers, and, following this prec- edent, we could draw competent men from thes> sam> sources and from the Department of Agriculture. “We should provide our Southern neighbors, i/ they request it, with such engineer advisers for the construction of roads and bridges. Private interests should look with favor upon all reason- able loans sought by these countries to open main lines of travel. Such as- sistance should be given especially to any project for a highway designed to connect all the countries on this hemi- sphere and thus facilitate intercourse and closer relations among them. Air Mail Service Rapidly Expanding. “The friendly relations and the ex- tensive commercial intercourse with the Western Hemisphere to the south of us are being further cemented by the es- tablishment and extension of air mail routes. We shall soon have one from Key West, Fla, over Cuba, Haiti, and Santo Domingo to San Juan, P. R, where it will connect with another route to Trinidad. There will be another route from Key West to the Canal Zone, where connection will be made with a route across the northern coast of South America to Paramaribo. This will give us a circle around the Carib- bean under our own control. Addi- tional connections will be made at Colon with a route running down the west coast of South America as far as Concepcion, Chile, and with the French air mail at Paramaribo running down the eastern coast of South America. The air service already spans our con- tinent, with laterals running to Mexico and Canada, and covering a daily flight of more than 28,000 miles, with an av- erage cargo of 15,000 pounds. Waterways Expense Curtailment Is Suggested. “Our river and harbor improvements are proceeding with vigor, In the past few years we have increased the ap- propriation for this regular work $28,- 000,000, besides what is to be expended on flood control. The total appropria- tion for this year was over $91,000,000. Army engineers are making investiga- tions and surveys on other streams | throughout the country with a view to flood control, navigation, waterpow- er, and irrigation. Our barge lines arc being operated under generous .appro- priations, and negotiations are develop- ing relative to the St. Lawrence water- way. To secure the largest benefits from all these waterways joint rates must be established with the railroads. preferably by agreement, but other- wise as a result of Congressional action. | “We have recently passed several | river and harbor bilis. The work or- dered by the Congress, not yet complet- ed, will cost about $243,000,000, besides the hundreds of millions to be spent on the Mississippi flood way. Until we can see our way out of this expense no further river and harbgr legislation | should be passed, as expenditures to put it into effect would be four or five years away. Irrigation of Arid Lands Will Tax Fund. “For many years the Federal Govern- ment has been committed to the wise policy of reclamation and irrigation. While it has met with some failures due | lack of thorough soil surveys, so that they could not be placed on a sound business basis, on the whole the service has been of such incalculable benefit in so many States that no one would ad- vocate its abandonment. The program to which we are already committed, providing for the construction of new projects authorized by Congress and the completion of old projects, will tax the resources of the reclamation fund over a period of years. The high cost of improving and equipping farms adds to the difficulty of securing settlers for vacant farms on Federal projects. “Readjustments authorized by the reclamation relief act of May 25, 1926, have given more favorable terms of re- payment to settlers. These new finan- cial arrangements and the general prosperity on irrigation projects have resulted in increased collections by the Department of the Interior of charges due the reclamation fund. Neverthe- less, the demand for still smaller yearly payments on some projects continues. These conditions should have considera- tion in connection with any proposed rew projects. Urges Private Boulder Dam Control. “For several years the Congress has considered the erection of a dam on the Colorado River for flood control, irriga- tion and domestic water purposes, all of which may properly be considered as Government functions. There would be an incidental creation of water power which could be used for generating elec- tricity. ~As private enterprise can very well fill this field, there is no need for the Government to go into it. It is un- fortunate that the States interested in this water have been unable to agree among themselves. Nevertheless, any legislation should give every possibie safeguard to the present and prospective rights of each of them. “The Congress will have before it the detailed report of a special board ap- pointed to consider the engineering and economic feasibility of this project. From the short summary which I have seen of it, I judge they consider the en- gineering problems can be met at some- what increased cost over previous esti- mates. They prefer the Black Canyon site. On the economic features they are not so clear and appear to base their conclusions on many conditions which cannot be established with certainty. So far as I can judge, however, from the summary, their conclusions appear sufficiently favorable, so that I feel war- ranted in recommending a measure which will protect the rights of the States, discharge the necessary Govern- ment functions and leave the electrical field to private enterprise. Muscle Shoals Lease. Approval Is Proposed. “The development of other methods of producing nitrates will probably ren- der this plant less important for that purpose than formerly. But we have it, and I am told it still provides a practi- cal method of making nitrates for na- tional defense and farm fertilizers. By dividing the property into its two com- ponent parts of power and nitrate plants it would be possible to dispose of the power, reserving the right to any con- cern that wished to make nitrates to use any power that might be needed for that purpose. Such a disposition of the power plant can be made that will re- turn in rental about $2,000,000 per year. If the Congress would grant the Secre- tary of War authority to lease the ni- trate plant on such terms as would in- sure the largest production of nitrates, the entire property could begin to fune- tion. Such a division, I am aware, has never seemed to appeal to the Congress. I should also gladly approve a bill grant- ing authority to lease the entire prop- eriy for the production of nitrates. “I wish to avoid building another dam at public expense. Future oper- ators should provide for that them- selves. But if they were to be required to repay the cost of such dam with the prevailing commercial rates for interest, this difficulty will be considerably less- ened. Nor do I think this property should be made a vehicle for putting the United States indiscriminately into the private and retail field of power distribution and nitrate sales. Natural Resources Conservation Is Urged. “The practical application of econ- omy to the resources of the country calls for consérvation. This does not mean that every resource should not be developed to its full ‘degree, but 1t means that none of them should be wasted. We have a conservation board working on our oil problem. This is of the utmost importance to the future well-being of our people in this age of oil-burning engines and the general application of gasoline to transborta- tion. The Secretary of the Interior should not be compelled to lease\oil lands of the Osage Indians when tg: market is depressed and the future sul ply is in jeopardy. “While the area of lands remaining in public ownership i: nall, compared with ihe vast area in private ownershio, the natural resources of those in pub- lic ownership are of immense prasent and future value. This is particularly true as to minerals and water power. The proper bureaus have been classify- ing these resources to the end that they may be conserved. Appropriate esti- mates are being submitted, in the budget, for the further prosecution of this important work. Tmmigration Policy Should Be Maintained. “The policy of restrictive immigration should be maintained. Authority should be granted the Secretary of Labor to give immediate preference to learned professions and experts essen- tial to new industries. The reuniting | of families should be expedited. Our immigration and naturalization laws might well be codified. Limit of Wages Based on Production. “In its economic life our country has rejected the long accepted law of a limitation of the wage fund, which led | to pessimism and despair because it was the doctrine of perpetual poverty, and | has substituted for it the American con- | ception that the only limit to prflfl!si and wages is production, which is the doctrine of optimism and hope because it leads to prosperity. Here and there | the councils of labor are still darkenad by the theory that only by limiting in- dividual production can there be any assurance of permanent employm>ni for increasing numbers, but in general, management and wage earner alike have become emancipated from this dcom and have entered a new era in industrial thought which has unleashed the productive capacity of the indi- vidual worker with an increasing scale The Ohio River is almost ready for opening; work on the Missouri and other rivers is under way. In accord- ance with the Mississipp! flood law v i { of wages and profits, the end of which is not vet. The application of this theory accounts for our widening dis- tribution of weala No discovery ever PRESIDENT’S MESSAGE CITES INCREASE IN NATION’S LIVING STANDARDSY} did more to increase the happiness and | prosperity of the people. “Since 1922 increasing production | has increased wages in general 12.9 per | cent, while in certain selected trades | they have run ag high as 34.9 per cent | and 38 per cent. Even in the boot and | shoe shops the increase is over 5 per cent and in woolen mills 8.4 per cent. | although these industries have not pros- pered like others. As the rise in living | costs in this period is negligible, these figures represent real wage increases. | “The cause of constructive economy | requires that the Government should | co-operate with private interests to| eliminate the waste arising from indus- trial accidents. This item, with all that has been done to reduce it, still reaches | enormous proportions with great suffer- | ing to the workman and great loss to | the country. | Infant Mortality Reduction Is Cited. | “The Federal Government Shom‘li continue its solicitous care for "‘"i 8,500,000 woman wage earners and its efforts in behalf of public health, which is reducing infant mortality and im- proving the bodily and mental condition of our citizens. Civil Service Pay Shows Big Increase. “The most marked change made in the civil service of the Government in the past eight years relates to the increase in salaries. The board of act- uaries on the retirement act shows by its report that July 1. 1921, the aver- sge salary of the 330,047 employes subject to the act was $1,307, while on | June 30, 1927, the average salary of the | corresponding 405,263 was $1,969. This was an increase in six vears of nea: 53 per cent. On top of this was th: generous increase made at the last ses- sion of the Congress generally applica- ble to Federal employes and another bill increasing the pay in certain branches of the postal service beyond the large ipcrease which was made three years ago. This raised the aver- age level from $1,969 to $2,092, making an increase in seven years of over 63 per cent. While it is well known that in the upper brackets the pay in the Federal service is much smaller than in private employment, in the lower brackets, ranging well up over $3,000, it is much higher. It is higher not only in actual money paid, but in privilege: granted, a vacation of 30 actual work: ing days, or 5 weeks each year, with additional time running in some depart- ments as high as 30 days for sick leave and the generous provisions of the re- tirement act. No other body of public servants ever occupied such a fortunate position. Education Bureau Renders Big Service. “Through thq, Burean of Education of the Department of the Interior thei Federal Government, acting in an in- formaiive and advisory capacity, has rendered valuable service. While this province belongs peculiarly to the States, yet the promotion of education and efficiency in educational methods is a general responsibility of the Fed- eral Government. A survey of negro colleges and universities in the United States has just been completed by the Bureau of Education- through funds provided by the' institutions themselves and through private sources. The pres- ent status of negro higher education was determined and recommendations were made for its advancement. This was one of the numerous co-operative undertakings of the bureau. Following the invitation of the Association of Land Grant Colleges and Universities, the Bureau of Education now has under way the survey of agricultural col- leges, authorized by Congress. The purpose of the survey is to ascertain the accomplishments, the status and the future objectives of this type of educational training. It is now pro- posed to undertake a survey of secon- dary schools, which educators insist is | timely and esseptial. Public Buildings Program Extensive. “We have laid out a public building | program for the District of Columbia and the country at large running into hundreds of millions of dollars. Three | important structures and one annex are already under way and one addi- tion has been completed in the City of Washington. In the country sites have been acquired, many buildings are in course of construction, and some are already completed. Plans for all this work are being prepared in order that it may be carried forward as rapidly as possible. This is the greatest building program ever assumed by this Nation. It contemplates structures of utility and of beauty. When it reaches completion the people will be well served and the | Federal City -vill be supplied with the | most beautiful and stately public build- xngsmwmch adorn any capital in the world. Indian Wards Better Supervised. “The administration of Indian affairs has been receiving intensive study for several years. The Department of the | Interior has been able to provide better | supervision of health, education and industrial advancement of this native race through additional funds provided by the Congress. The present co-opera- tive arrangement existing between the Bureau of Indian Affairs and the Pub- lic Health Service should be extended. The Government's responsibility to the American Indian has been acknow! edged by annual increases in appro- priations to fulfill its obligations to them and to hasten the time when Fed- eral supervision of their affairs may be properly ang safely terminated. The movement in: Congress and in some of the State legislatures for extending re- sponsibility in Indian affairs to States should be encouraged. A complete par- | ticipation by the Indian in our economic ' life is the end to be desired. Colored Progress Alded by Government.® “For 65 years now our negro popu- lation has been under the peculiar care and solicitude of the Natibpal Govern- ment. The progress which they have made in education and the professions, in wealth and in the arts of civilization affords one of the most remarkable 1 cidents in this period of world histor; They have demonstrated their gbility to partake of the advantages of our in- stitutions and to benefit by a free and | more and more independent existence. Whatever doubt there may have been of their capacity to assume the status | granted to them by the Constitution | of this Union is being rapidly dissipated. Their co-operation in the life of the | Nation is constantly enlarging. “Exploiting the negro problem for political ends is being abandoned and their protection is being increased by those States in which their percentage | of population is largest. Every encour- agement should be extended for the development of the race. The colored people have been the victims of the crime of lynching, which has in late | Porto Rico la INTERNATIONAL AFFAIRS PROGRESS DE\’IONSTRATED Kellogg Treaty to Outlaw War Referred to as New Step Against Hostile Actions. ernment can extend under the Consti= tuticn. Stimson Raises Philippines’ Standard. “Under the guidance of Governor General Stimson the economic and po- litical conditions of the Philippine Islands have been raisec to a standard never before surpassed. The co-opsra- tion between his aaministration and the people of the islands is complete and harmonious It would be an advantage if relief from double ta granted by the Congress to our citizens doing business in the islands. Porto Rico Coffee Growers Need Assistance. “Due to the torm that sweot t September, the people of that Island suffered large losses. The Red Cross and the War Depart- ment went to their rescue. The prop= erty loss is being retrieved. Sugar, to= bacco, citrus fruit, and coffee, all suf- fered damage. ‘The first three can largely look after themselves, The cof- fee growers will need some assistance, which should be extended strictly on a business basis, and only after most care- ful investigation. The people of Porto Rico are not asking for charity. Department of Justice Consolidation Is Required. “It is desirable that all the legal activities of the Government be con- solidated tnder the supervision of the Attorney General. In 1870 it was felt necessary to create the Department of Justice for this purpose. During the intervening period, either through legis- lation creating law officers or depart- mental action, additional legal positions not under the supervision of the Attor= ney General have been provided until there are now over 900. Such a condi- tion is as harmful to the inters the Government now as it was and should be corrected by appropr legislation. Advises New Law and Special 0il Counsel. “In order to prosecute the oil cases I suggested and the Congress enacted a law providing for the appointment uf two special counsel. They have ‘pur= sued their work with signal ability, re- covering all the leased lands, besides nearly $30,000,000 in money and nearly $17,000,000 in other proverty. They find themselves hamperes by a statute, which the Attorney General construes as applying to them, prohibiting their appearing for private clients before any department. For this reason one has been compelled to _esign. No good re- sult is secured by the application of this rule to these counsel, and as Mr. Rob- erts has consented to take reappoint- ment if the rule is abrogated, I recom- mend the passage of an amendment to the law creating their office exempting them from the general rule against. tak- ing other cases involving the Govern- ment. y F'rohibition Law Enforcement Is Urged. “The country has duly adopted the eighteenth amendment. Those who ob- ject to it have the right to advocate its modification or repeal. Meantime it is binding upon the National and State governments and all our inHabitants. The Federal enforéement bureau is n.aking every effort to prevent viola- tions, especially through smuggling, manufacture and transportation, and to prosecute generally all violations for which it can secure evidence. It is bound to continue this pelicy. Under the terms of the Constitution, howevcr, the obligation is equally on the States to exercise the power which they have through the executive, legislative, judi- cial and police branches of their gov- ernments in behalf of enforcement. The Federal Government is doing and will continue to do all it can in this direc~ tion, and is entitled to the active co- operation of the States. Era of Prosperity Needs Work to Hold. “The country is in the midst of an era of prosperity more extensive and of peace more permanent than it has ever before experienced. But, having reached this position, we should not fail to comprehend that it can easily be lost. It needs more effort for its support than the less exalted places of the world. We shall not be permitted to take our ease, but shall continue to be required to spend our days in unre- mitting toil. The actions of the Gov~ ernment must command the confidence of the country. Without this our pros- perity would be lost. We must extend to other countries the largest measure of generosity, moderation and patience. In addition to dealing justly, we can well afford to walk humbly. “The end of government is to keep open the opportunity for a more abun- dant life. Peace and prosperity are not finalities; they are only methods, It is too casy under their influence for a nation to become selfisl and degenerate,, This test has come to the United St . Our country has’ been provided wit the recources with which it can enlarge its intellectual, moral and spiritual Jifg,, The issueis inl the hands of the pe Our faith in man .nd God is the juat; fication for the belief in gur contin success. terri ate Sturtevant Blowers For’ ’gmlnl Buckwheat Coal FRIES, BEALL & SHARP 734 10th St. N.W. Want to Sell 4109 Leland Street Chevy Chase, Md. West of Conn. Ave, property: Detached, 4 bedrooms, sleeping porch, A. I, lot 50x130 ft. and garage atch house. This beautiful home ijs ideally located. I further information desired phone: J Dan G. Loomis years somewhat decreased. Some parts of the South already have wholesome laws for its restraint and punishment. Their example might well be followed by other States, and by such immediate remedial legislation as the Federal Gov- \2812 36th Place N.W. Cleve. 3455