To the Congress of the United States:
The present state of the Union, upon which it is customary for the President
to report to the Congress under the provisions of the Constitution, is such
that it may be regarded with encouragement and satisfaction by every American.
Our country is almost unique in its ability to discharge fully and promptly
all its obligations at home and abroad, and provide for all its inhabitants
an increase in material resources, in intellectual vigor and in moral power.
The Nation holds a position unsurpassed in all former human experience.
This does not mean that we do not have any problems. It is elementary that the
increasing breadth of our experience necessarily increases the problems of our
national life. But it does mean that if all will but apply ourselves industriously
and honestly, we have ample powers with which to meet our problems and provide
for I heir speedy solution. I do not profess that we can secure an era of perfection
in human existence, but we can provide an era of peace and prosperity, attended
with freedom and justice and made more and more satisfying by the ministrations
of the charities and humanities of life.
In my opinion the Government can do more to remedy the economic ills of the
people by a system of rigid economy in public expenditure than can be accomplished
through any other action. The costs of our national and local governments combined
now stand at a sum close to $100 for each inhabitant of the land. A little less
than one-third of this is represented by national expenditure, and a little
more than two-thirds by local expenditure. It is an ominous fact that only the
National Government is reducing its debt. Others are increasing theirs at about
$1,000,000,000 each year. The depression that overtook business, the disaster
experienced in agriculture, the lack of employment and the terrific shrinkage
in all values which our country experienced in a most acute form in 1920, resulted
in no small measure from the prohibitive taxes which were then levied on all
productive effort. The establishment of a system of drastic economy in public
expenditure, which has enabled us to pay off about one-fifth of the national
debt since 1919, and almost cut in two the national tax burden since 1921, has
been one of the main causes in reestablishing a prosperity which has come to
include within its benefits almost every one of our inhabitants. Economy reaches
everywhere. It carries a blessing to everybody.
The fallacy of the claim that the costs of government are borne by the rich
and those who make a direct contribution to the National Treasury can not be
too often exposed. No system has been devised, I do not think any system could
be devised, under which any person living in this country could escape being
affected by the cost of our government. It has a direct effect both upon the
rate and the purchasing power of wages. It is felt in the price of those prime
necessities of existence, food, clothing, fuel and shelter. It would appear
to be elementary that the more the Government expends the more it must require
every producer to contribute out of his production to the Public Treasury, and
the less he will have for his own benefit. The continuing costs of public administration
can be met in only one way ? by the work of the people. The higher they become,
the more the people must work for the Government. The less they are, the more
the people can work for themselves.
The present estimated margin between public receipts and expenditures for this
fiscal year is very small. Perhaps the most important work that this session
of the Congress can do is to continue a policy of economy and further reduce
the cost of government, in order that we may have a reduction of taxes for the
next fiscal year. Nothing is more likely to produce that public confidence which
is the forerunner and the mainstay of prosperity, encourage and enlarge business
opportunity with ample opportunity for employment at good wages, provide a larger
market for agricultural products, and put our country in a stronger position
to be able to meet the world competition in trade, than a continuing policy
of economy. Of course necessary costs must be met, proper functions of the Government
performed, and constant investments for capital account and reproductive effort
must be carried on by our various departments. But the people must know that
their Government is placing upon them no unnecessary burden.
TAXES
Everyone desires a reduction of taxes, and there is a great preponderance of
sentiment in favor of taxation reform. When I approved the present tax law,
I stated publicly that I did so in spite of certain provisions which I believed
unwise and harmful. One of the most glaring of these was the making public of
the amounts assessed against different income-tax payers. Although that damage
has now been done, I believe its continuation to be detrimental To the public
welfare and bound to decrease public revenues, so that it ought to be repealed.
Anybody can reduce taxes, but it is not so easy to stand in the gap and resist
the passage of increasing appropriation bills which would make tax reduction
impossible. It will be very easy to measure the strength of the attachment to
reduced taxation by the power with which increased appropriations are resisted.
If at the close of the present session the Congress has kept within the budget
which I propose to present, it will then be possible to have a moderate amount
of tax reduction and all the tax reform that the Congress may wish for during
the next fiscal year. The country is now feeling the direct stimulus which came
from the passage of the last revenue bill, and under the assurance of a reasonable
system of taxation there is every prospect of an era of prosperity of unprecedented
proportions. But it would be idle to expect any such results unless business
can continue free from excess profits taxation and be accorded a system of surtaxes
at rates which have for their object not the punishment of success or the discouragement
of business, but the production of the greatest amount of revenue from large
incomes. I am convinced that the larger incomes of the country would actually
yield more revenue to the Government if the basis of taxation were scientifically
revised downward. Moreover the effect of the present method of this taxation
is to increase the cost of interest. on productive enterprise and to increase
the burden of rent. It is altogether likely that such reduction would so encourage
and stimulate investment that it would firmly establish our country in the economic
leadership of the world.
WATERWAYS
Meantime our internal development should go on. Provision should be made for
flood control of such rivers as the Mississippi and the Colorado, and for the
opening up of our inland waterways to commerce. Consideration is due to the
project of better navigation from the Great Lakes to the Gulf. Every effort
is being made to promote an agreement with Canada to build the, St. Lawrence
waterway. There are pending before the Congress bills for further development
of the Mississippi Basin, for the taking over of the Cape Cod Canal in accordance
with a moral obligation which seems to have been incurred during the war, and
for the improvement of harbors on both the Pacific and the Atlantic coasts.
While this last should be divested of some of its projects and we must proceed
slowly, these bills in general have my approval. Such works are productive of
wealth and in the long run tend to a reduction of the tax burden.
RECLAMATION
Our country has a well defined policy of reclamation established under
statutory authority. This policy should be continued and made a self-sustaining
activity administered in a manner that will meet local requirements and bring
our and lands into a profitable state of cultivation as fast as there is a market
for their products. Legislation is pending based on the report of the Fact Finding
Commission for the proper relief of those needing extension of time in which
to meet their payments on irrigated land, and for additional amendments and
reforms of our reclamation laws, which are all exceedingly important and should
be enacted at once.
No more important development has taken place in the last year than
the beginning of a restoration of agriculture to a prosperous condition. We
must permit no division of classes in this country, with one occupation striving
to secure advantage over another. Each must proceed under open opportunities
and with a fair prospect of economic equality. The Government can not successfully
insure prosperity or fix prices by legislative fiat. Every business has its
risk and its times of depression. It is well known that in the long run there
will be a more even prosperity and a more satisfactory range of prices under
the natural working out of economic laws than when the Government undertakes
the artificial support of markets and industries. Still we can so order our
affairs, so protect our own people from foreign competition, so arrange our
national finances, so administer our monetary system, so provide for the extension
of credits, so improve methods of distribution, as to provide a better working
machinery for the transaction of the business of the Nation with the least possible
friction and loss. The Government has been constantly increasing its efforts
in these directions for the relief and permanent establishment of agriculture
on a sound and equal basis with other business.
It is estimated that the value of the crops for this harvest year may reach
$13,000,000,000, which is an increase of over $3,000,000,000 in three years.
It compares with $7,100,000,000 in 1913, arid if we make deduction from the
figures of 1924 for the comparatively decreased value of the dollar, the yield
this year still exceeds 1913 in purchasing power by over $1,000,000,000, and
in this interval there has been no increase in the number of farmers. Mostly
by his own effort the farmer has decreased the cost of production. A marked
increase in the price of his products and some decrease in the price of his
supplies has brought him about to a parity with the rest of the Nation. The
crop area of this season is estimated at 370,000,000 acres, which is a decline
of 3,000,000 acres from last year, and 6,000,000 acres from 1919. This has been
a normal and natural application of economic laws, which has placed agriculture
on a foundation which is undeniably sound and beginning to be satisfactory.
A decrease in the world supply of wheat has resulted in a very large increase
in the price of that commodity. The position of all agricultural products indicates
a better balanced supply, but we can not yet conclude that agriculture is recovered
from the effects of the war period or that it is permanently on a prosperous
basis. The cattle industry has not yet recovered and in some sections has been
suffering from dry weather. Every effort must be made both by Government activity
and by private agencies to restore and maintain agriculture to a complete normal
relationship with other industries.
It was on account of past depression, and in spite of present more encouraging
conditions, that I have assembled an Agricultural Conference made up of those
who are representative of this great industry in both its operating and economic
sides. Everyone knows that the great need of the farmers is markets. The country
is not suffering on the side of production. Almost the entire difficulty is
on the side of distribution. This reaches back, of course, to unit costs and
diversification, and many allied subjects. It is exceedingly intricate, for
our domestic and foreign trade, transportation and banking, and in fact our
entire economic system, are closely related to it. In time for action at this
session, I hope to report to the Congress such legislative remedies as the conference
may recommend. An appropriation should be made to defray their necessary expenses.
MUSCLE SHOALS
The production of nitrogen for plant food in peace and explosives in war is
more and more important. It is one of the chief sustaining elements of life.
It is estimated that soil exhaustion each year is represented by about 9,000,000
tons and replenishment by 5,450,000 tons. The deficit of 3,550,000 tons is reported
to represent the impairment of 118,000,000 acres of farm lands each year.
To meet these necessities the Government has been developing a water power
project at Muscle Shoals to be equipped to produce nitrogen for explosives and
fertilizer. It is my opinion that the support of agriculture is the chief problem
to consider in connection with this property. It could by no means supply the
present needs for nitrogen, but it would help and its development would encourage
bringing other water powers into like use.
Several offers have been made for the purchase of this property. Probably none
of them represent final terms. Much costly experimentation is necessary to produce
commercial nitrogen. For that reason it is a field better suited to private
enterprise than to Government operation. I should favor a sale of this property,
or long-time lease, tinder rigid guaranties of commercial nitrogen production
at reasonable prices for agricultural use. There would be a surplus of power
for many years over any possibility of its application to a developing manufacture
of nitrogen. It may be found advantageous to dispose of the right to surplus
power separately with such reservations as will allow its gradual withdrawal
and application to nitrogen manufacture. A subcommittee of the Committees on
Agriculture should investigate this field and negotiate with prospective purchasers.
If no advantageous offer be made, the development should continue and the plant
should be dedicated primarily to the production of materials for the fertilization
of the soil.
RAILWAYS
The railways during the past year have made still further progress in recuperation
from the war, with large rains in efficiency and ability expeditiously to handle
the traffic of the country. We have now passed through several periods of peak
traffic without the car shortages which so frequently in the past have brought
havoc to our agriculture and industries. The condition of many of our great
freight terminals is still one of difficulty and results in imposing, large
costs on the public for inward-bound freight, and on the railways for outward-bound
freight. Owing to the growth of our large cities and the great increase in the
volume of traffic, particularly in perishables, the problem is not only difficult
of solution, but in some cases not wholly solvable by railway action alone.
In my message last year I emphasized the necessity for further legislation
with a view to expediting the consolidation of our rail ways into larger systems.
The principle of Government control of rates and profits, now thoroughly imbedded
in our governmental attitude toward natural monopolies such as the railways,
at once eliminates the need of competition by small units as a method of rate
adjustment. Competition must be preserved as a stimulus to service , but this
will exist and can be increased tinder enlarged systems. Consequently the consolidation
of the railways into larger units for the purpose of securing the substantial
values to the public which will come from larger operation has been the logical
conclusion of Congress in its previous enactments, and is also supported by
the best opinion in the country. Such consolidation will assure not only a greater
element of competition as to service, but it will afford economy in operation,
greater stability in railway earnings, and more economical financing. It opens
large possibilities of better equalization of rates between different classes
of traffic so as to relieve undue burdens upon agricultural products and raw
materials generally, which are now not possible without ruin to small units
owing to the lack of diversity of traffic. It would also tend to equalize earnings
in such fashion as to reduce the importance of section 15A, at which criticism,
often misapplied, has been directed. A smaller number of units would offer less
difficulties in labor adjustments and would contribute much to the, solution
of terminal difficulties.
The consolidations need to be carried out with due regard to public interest
and to the rights and established life of various communities in our country.
It does not seem to me necessary that we endeavor to anticipate any final plan
or adhere to an artificial and unchangeable project which shall stipulate a
fixed number of systems, but rather we ought to approach the problem with such
a latitude of action that it can be worked out step by step in accordance with
a comprehensive consideration of public interest. Whether the number of ultimate
systems shall be more or less seems to me can only be determined by time and
actual experience in the development of such consolidations.
Those portions of the present law contemplating consolidations ore not, sufficiently
effective in producing expeditious action and need amplification of the authority
of the Interstate Commerce Commission, particularly in affording a period for
voluntary proposals to the commission and in supplying Government pressure to
secure action after the expiration of such a period.
There are other proposals before Congress for amending the transportation acts.
One of these contemplates a revision of the method of valuation for rate-making
purposes to be followed by a renewed valuation of the railways. The valuations
instituted by the Interstate Commerce Commission 10 years ago have not yet been
completed. They have cost the Government an enormous sum, and they have imposed
great expenditure upon the railways, most of which has in effect come out of
the public in increased rates. This work should not be abandoned or supplanted
until its results are known and can be considered.
Another matter before the Congress is legislation affecting the labor sections
of the transportation act. Much criticism has been directed at the workings
of this section and experience has shown that some useful amendment could be
made to these provisions.
It would be helpful if a plan could be adopted which, while retaining the practice
of systematic collective bargaining with conciliation voluntary arbitration
of labor differences, could also provide simplicity in relations and more direct
local responsibility of employees and managers. But such legislation will not
meet the requirements of the situation unless it recognizes the principle that
t e public has a right to the uninterrupted service of transportation, and therefore
a right to be heard when there is danger that the Nation may suffer great injury
through the interruption of operations because of labor disputes. If these elements
are not comprehended in proposed legislation, it would be better to gain further
experience with the present organization for dealing with these questions before
undertaking a change.
SHIPPING BOARD
The form of the organization of the Shipping Board was based originally on
its functions as a semi judicial body in regulation of rates. During the war
it was loaded with enormous administrative duties. It has been demonstrated
time and again that this form of organization results in indecision, division
of opinion and administrative functions, which make a wholly inadequate foundation
for the conduct of a great business enterprise. The first principle in securing
the objective set out by Congress in building up the American merchant marine
upon the great trade routes and subsequently disposing of it into private operation
can not proceed with effectiveness until the entire functions of the board are
reorganized. The immediate requirement is to transfer into the Emergency Fleet,
Corporation the whole responsibility of operation of the fleet and other property,
leaving to the Shipping Board solely the duty of determining certain major policies
which require deliberative action.
The procedure under section 28 of the merchant marine act has created great
difficulty and threatened friction during the past 12 months. Its attempted
application developed not only great opposition from exporters, particularly
as to burdens that may be imposed upon agricultural products, but also great
anxiety in the different seaports as to the effect upon their relative rate
structures. This trouble will certainly recur if action is attempted under this
section. It is uncertain in some of its terms and of great difficulty in interpretation.
It is my belief that action under this section should be suspended until the
Congress can reconsider the entire question in the light of the experience that
has been developed since its enactment.
NATIONAL ELECTIONS
Nothing is so fundamental to the integrity of a republican form of government
as honesty in all that relates to the conduct of elections. I am of the opinion
that the national laws governing the choice of members of the Congress should
be extended to include appropriate representation of the respective parties
at the ballot box ant equality of representation on the various registration
boards, wherever they exist.
THE JUDICIARY
The docket of the Supreme Court is becoming congested. At the opening term
last year it had 592 cases, while this year it had 687 cases. Justice long delayed
is justice refused. Unless the court be given power by preliminary and summary
consideration to determine the importance of cases, and by disposing of those
which are not of public moment reserve its time for the more extended consideration
of the remainder, the congestion of the docket is likely to increase. It is
also desirable that Supreme Court should have power to improve and reform procedure
in suits at law in the Federal courts through the adoption of appropriate rules.
The Judiciary Committee of the Senate has reported favorably upon two bills
providing for these reforms which should have the immediate favorable consideration
of the Congress.
I further recommend that provision be made for the appointment of a commission,
to consist of two or three members of the Federal judiciary and as many members
of the bar, to examine the present criminal code of procedure and recommend
to the Congress measures which may reform and expedite court procedure in the
administration and enforcement of our criminal laws.
PRISON REFORM
Pending before the Congress is a bill which has already passed one House providing
for a reformatory to which could be committed first offenders and young men
for the purpose of segregating them from contact with banned criminals and providing
them with special training in order to reestablish in them the power to pursue
a law-abiding existence in the social and economic life of the Nation. This
is a matter of so much importance as to warrant the early attention of the present
session. Further provision should also be made, for a like reason, for a separate
reformatory for women.
NATIONAL POLICE BUREAU
Representatives of the International Police Conference will bring to t e attention
of the Congress a proposal for the establishment of a national police bureau.
Such action would provide a central point for gathering, compiling, and later
distributing to local police authorities much information which would be helpful
in the prevention and detection of crime. I believe this bureau is needed, and
I recommend favorable consideration of this proposal.
DISTRICT OF COLUMBIA WELFARE
The welfare work of the District of Columbia is administered by several different
boards dealing with charities and various correctional efforts. It would be
an improvement if this work were consolidated and placed under the direction
of a single commission.
FRENCH SPOLIATION CLAIMS
During the last session of the Congress legislation was introduced looking
to the payment of the remaining claims generally referred to as the French spoliation
claims. The Congress has provided for the payment of many similar claims. Those
that remain unpaid have been long pending. The beneficiaries thereunder have
every reason to expect payment. These claims have been examined by the Court
of Claims and their validity and amount determined. The United States ought
to pay its debts. I recommend action by the Congress which will permit of the
payment of these remaining claims.
THE WAGE EARNER
Two very important policies have been adopted by this country which, while
extending their benefits also in other directions, have been of the utmost importance
to the wage earners. One of these is the protective tariff, which enables our
people to live according to a better standard and receive a better rate of compensation
than any people, any time, anywhere on earth, ever enjoyed. This saves the American
market for the products of the American workmen. The other is a policy of more
recent origin and seeks to shield our wage earners from the disastrous competition
of a great influx of foreign peoples. This has been done by the restrictive
immigration law. This saves the American job for the American workmen. I should
like to see the administrative features of this law rendered a little more humane
for the purpose of permitting those already here a greater latitude in securing
admission of members of their own families. But I believe this law in principle
is necessary and sound, and destined to increase greatly the public welfare.
We must maintain our own economic position, we must defend our own national
integrity.
It is gratifying to report that the progress of industry, the enormous increase
in individual productivity through labor-saving devices, and the high rate of
wages have all combined to furnish our people in general with such an abundance
not only of the necessaries but of the conveniences of life that we are by a
natural evolution solving our problems of economic and social justice.
THE NEGRO
These developments have brought about a very remarkable improvement in the
condition of the negro race. Gradually, but surely, with the almost universal
sympathy of those among whom they live, the colored people are working out their
own destiny. I firmly believe that it is better for all concerned that they
should be cheerfully accorded their full constitutional rights, that they should
be protected from all of those impositions to which, from their position, they
naturally fall a prey, especially from the crime of lynching and that they should
receive every encouragement to become full partakers in all the blessings of
our common American citizenship.
CIVIL SERVICE
The merit system has long been recognized as the correct basis for employment
in our, civil service. I believe that first second, and third class postmasters,
and without covering in the present membership tile field force of prohibition
enforcement, should be brought within the classified service by statute law.
Otherwise the Executive order of one administration is changed by the Executive
order of another administration, and little real progress is made. Whatever
its defects, the merit system is certainly to be preferred to the spoils system.
DEPARTMENTAL REORGANIZATION
One way to save public money would be to pass the pending bill for the reorganization
of the various departments. This project has been pending for some time, and
has had the most careful consideration of experts and the thorough study of
a special congressional committee. This legislation is vital as a companion
piece to the Budget law. Legal authority for a thorough reorganization of the
Federal structure with some latitude of action to the Executive in the rearrangement
of secondary functions would make for continuing economy in the shift of government
activities which must follow every change in a developing country. Beyond this
many of the independent agencies of the Government must be placed under responsible
Cabinet officials, if we are to have safeguards of efficiency, economy, and
probity.
ARMY AND NAVY
Little has developed in relation to our national defense which needs special
attention. Progress is constantly being made in air navigation and requires
encouragement and development. Army aviators have made a successful trip around
the world, for which I recommend suitable recognition through provisions for
promotion, compensation, and retirement. Under the direction of the Navy a new
Zeppelin has been successfully brought from Europe across the Atlantic to our
own country.
Due to the efficient supervision of the Secretary of War the Army of the United
States has been organized with a small body of Regulars and a moderate National
Guard and Reserve. The defense test of September 12 demonstrated the efficiency
of the operating plans. These methods and operations are well worthy of congressional
support.
Under the limitation of armaments treaty a large saving in outlay and a considerable
decrease in maintenance of the Navy has been accomplished. We should maintain
the policy of constantly working toward the full treaty strength of the Navy.
Careful investigation is being made in this department of the relative importance
of aircraft, surface and submarine vessels, in order that we may not fail to
take advantage of all modern improvements for our national defense. A special
commission also is investigating the problem of petroleum oil for the Navy,
considering the best policy to insure the future supply of fuel oil and prevent
the threatened drainage of naval oil reserves. Legislative action is required
to carry on experiments in oil shale reduction, as large deposits of this type
have been set aside for the use of the Navy.
We have been constantly besought to engage in competitive armaments. Frequent
reports will reach us of the magnitude of the military equipment of other, nations.
We shall do well to be little impressed by such reports or such actions. Any
nation undertaking to maintain a military establishment with aggressive and
imperialistic designs will find itself severely handicapped in the economic
development of the world. I believe thoroughly in the Army and Navy, in adequate
defense and preparation. But I am opposed to any policy of competition in building
and maintaining land or sea armaments.
Our country has definitely relinquished the old standard of dealing
with other countries by terror and force, and is definitely committed to the
new standard of dealing with them through friendship and understanding. This
new policy should be constantly kept in mind by the guiding forces of the Army
and Navy, by the. Congress and by the country at large. I believe it holds a
promise of great benefit to humanity. I shall resist any attempt to resort to
the old methods and the old standards. I am especially solicitous that foreign
nations should comprehend the candor and sincerity with which we have adopted
this position. While we propose to maintain defensive and supplementary police
forces by land and sea, and to train them through inspections and maneuvers
upon appropriate occasions in order to maintain their efficiency, I wish every
other nation to understand that this does not express any unfriendliness or
convey any hostile intent. I want the armed forces of America to be considered
by all peoples not as enemies but as friends as the contribution which is made
by this country for the maintenance of the peace and security of the world.
VETERANS
With the authorization for general hospitalization of the veterans of all wars
provided during the present year, the care and treatment of those who have served
their country in time of peril and the attitude of the Government toward them
is not now so much one of needed legislation as one of careful, generous and
humane administration. It will ever be recognized that their welfare is of the
first concern and always entitled to the most solicitous consideration oil the
part of their fellow citizens. They are organized in various associations, of
which the chief and most representative is the American Legion. Through its
officers the Legion will present to the Congress numerous suggestions for legislation.
They cover such a wide variety of subjects that it is impossible to discuss
them within the scope of this message. With many of the proposals I join in
hearty approval and commend them all to the sympathetic investigation and consideration
of the Congress.
FOREIGN RELATIONS
At no period in the past 12 years have our foreign relations been in such a
satisfactory condition as they are at the present time. Our actions in the recent
months have greatly strengthened the American policy of permanent peace with
independence. The attitude which our Government took and maintained toward an
adjustment of European reparations, by pointing out that it wits not a political
but a business problem, has demonstrated its wisdom by its actual results. We
desire to see Europe restored that it may resume its productivity in the increase
of industry and its support in the advance of civilization. We look with great
gratification at the hopeful prospect of recuperation in Europe through the
Dawes plan. Such assistance as can be given through the action of the public
authorities and of our private citizens, through friendly counsel and cooperation,
and through economic and financial support, not for any warlike effort but for
reproductive enterprise, not to provide means for unsound government financing
but to establish sound business administration ' should be unhesitatingly provided.
Ultimately nations, like individuals, can not depend upon each other but must
depend upon themselves. Each one must work out its own salvation. We have every
desire to help. But with all our resources we are powerless to save unless our
efforts meet with a constructive response. The situation in our own country
and all over the world is one Chat can be improved only by bard work and self-denial.
It is necessary to reduce expenditures, increase savings and liquidate debts.
It is in this direction that there lies the greatest hope of domestic tranquility
and international peace. Our own country ought to finish the leading example
in this effort. Our past adherence to this policy, our constant refusal to maintain
a military establishment that could be thought to menace the security of others,
our honorable dealings with other nations whether great or small, has left us
in the almost constant enjoyment of peace.
It is not necessary to stress the general desire of all the people of this
country for the promotion of peace. It is the leading principle of all our foreign
relations. We have on every occasion tried to cooperate to this end in all ways
that were consistent with our proper independence and our traditional policies.
It will be my constant effort to maintain these principles, and to reinforce
them by all appropriate agreements and treaties. While we desire always to cooperate
and to help, we are equally determined to be independent and free. Right and
truth and justice and humanitarian efforts will have the moral support of this
country all over the world. But we do not wish to become involved in the political
controversies of others. Nor is the country disposed to become a member of the
League of Nations or to assume the obligations imposed by its covenant.
INTERNATIONAL COURT
America has been one of the foremost nations in advocating tribunals for the
settlement of international disputes of a justiciable character. Our representatives
took a leading in those conferences which resulted in the establishment of e
ague Tribunal, and later in providing for a Permanent Court of International
Justice. I believe it would be for the advantage of this country and helpful
to the stability of other nations for us to adhere to the protocol establishing,
that court upon the conditions stated in the recommendation which is now before
the Senate, and further that our country shall not be bound by advisory opinions
which may be, rendered by the court upon questions which we have not voluntarily
submitted for its judgment. This court would provide a practical and convenient
tribunal before which we could go voluntarily, but to which we could not be
summoned, for a determination of justiciable questions when they fail to be
resolved by diplomatic negotiations.
DISARMAMENT CONFERENCE
Many times I have expressed my desire to see the work of the Washington Conference
on Limitation of Armaments appropriately supplemented by further agreements
for a further reduction M for the purpose of diminishing the menace and waste
of the competition in preparing instruments of international war. It has been
and is my expectation that we might hopefully approach other great powers for
further conference on this subject as soon as the carrying out of the present
reparation plan as the established and settled policy of Europe has created
a favorable opportunity. But on account of proposals which have already been
made by other governments for a European conference, it will be necessary to
wait to see what the outcome of their actions may be. I should not wish to propose
or have representatives attend a conference which would contemplate commitments
opposed to the freedom of action we desire to maintain unimpaired with respect
to our purely domestic policies.
INTERNATIONAL LAW
Our country should also support efforts which are being made toward the codification
of international law. We can look more hopefully, in the first instance, for
research and studies that are likely to be productive of results, to a cooperation
among representatives of the bar and members of international law institutes
and societies, than to a conference of those who are technically representative
of their respective governments, although, when projects have been developed,
they must go to the governments for their approval. These expert professional
studies are going on in certain quarters and should have our constant encouragement
and approval.
OUTLAW OF WAR
Much interest has of late been manifested in this country in the discussion
of various proposals to outlaw aggressive war. I look with great sympathy upon
the examination of this subject. It is in harmony with the traditional policy
of our country, which is against aggressive war and for the maintenance of permanent
and honorable peace. While, as I have said, we must safeguard our liberty to
deal according to our own judgment with our domestic policies, we can not fail
to view with sympathetic interest all progress to this desired end or carefully
to study the measures that may be proposed to attain it.
LATIN AMERICA
While we are desirous of promoting peace in every quarter of the globe, we
have a special interest in the peace of this hemisphere. It is our constant
desire that all causes of dispute in this area may be tranquilly and satisfactorily
adjusted. Along with our desire for peace is the earnest hope for the increased
prosperity of our sister republics of Latin America, and our constant purpose
to promote cooperation with them which may be mutually beneficial and always
inspired by the most cordial friendships.
FOREIGN DEBTS
About $12,000,000,000 is due to our Government from abroad, mostly from European
Governments. Great Britain, Finland, Hungary, Lithuania and Poland have negotiated
settlements amounting close to $5,000,000,000. This represents the funding of
over 42 per cent of the debt since the creation of the special Foreign Debt
Commission. As the life of this commission is about to expire, its term should
be extended. I am opposed to the cancellation of these debts and believe it
for the best welfare of the world that they should be liquidated and paid as
fast as possible. I do not favor oppressive measures, but unless money that
is borrowed is repaid credit can not be secured in time of necessity, and there
exists besides a moral obligation which our country can not ignore and no other
country can evade. Terms and conditions may have to conform to differences in
the financial abilities of the countries concerned, but the principle that each
country should meet its obligation admits of no differences and is of universal
application.
It is axiomatic that our country can not stand still. It would seem to be perfectly
plain from recent events that it is determined to go forward. But it wants no
pretenses, it wants no vagaries. It is determined to advance in an orderly,
sound and common-sense way. It does not propose to abandon the theory of the
Declaration that the people have inalienable rights which no majority and no
power of government can destroy. It does not propose to abandon the practice
of the Constitution that provides for the protection of these rights. It believes
that within these limitations, which are imposed not by the fiat of man but
by the law of the Creator, self-government is just and wise. It is convinced
that it will be impossible for the people to provide their own government unless
they continue to own their own property.
These are the very foundations of America. On them has been erected a Government
of freedom and equality, of justice and mercy, of education and charity. Living
under it and supporting it the people have come into great possessions on the
material and spiritual sides of life. I want to continue in this direction.
I know that the Congress shares with me that desire. I want our institutions
to be more and more expressive of these principles. I want the people of all
the earth to see in the American flag the symbol of a Government which intends
no oppression at home and no aggression abroad, which in the spirit of a common
brotherhood provides assistance in time of distress.
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