1914-1	1914	GENTLEMEN OF THE CONGRESS:  
1914-2	1914	The session upon which you are now entering will be the closing session of  the Sixty-third Congress, a Congress, I venture to say, which will long be  remembered for the great body of thoughtful and constructive work which it  has done, in loyal response to the thought and needs of the country. I  should like in this address to review the notable record and try to make  adequate assessment of it; but no doubt we stand too near the work that has  been done and are ourselves too much part of it to play the part of  historians toward it.  
1914-3	1914	Our program of legislation with regard to the regulation of business is now  virtually complete. It has been put forth, as we intended, as a whole, and  leaves no conjecture as to what is to follow. The road at last lies clear  and firm before business. It is a road which it can travel without fear or  embarrassment. It is the road to ungrudged, unclouded success. In it every  honest man, every man who believes that the public interest is part of his  own interest, may walk with perfect confidence.  
1914-4	1914	Moreover, our thoughts are now more of the future than of the past. While  we have worked at our tasks of peace the circumstances of the whole age  have been altered by war. What we have done for our own land and our own  people we did with the best that was in us, whether of character or of  intelligence, with sober enthusiasm and a confidence in the principles upon  which we were acting which sustained us at every step of the difficult  undertaking; but it is done. It has passed from our hands. It is now an  established part of the legislation of the country. Its usefulness, its  effects will disclose themselves in experience. What chiefly strikes us  now, as we look about us during these closing days of a year which will be  forever memorable in the history of the world, is that we face new tasks,  have been facing them these six months, must face them in the months to  come,-face them without partisan feeling, like men who have forgotten  everything but a common duty and the fact that we are representatives of a  great people whose thought is not of us but of what America owes to herself  and to all mankind in such circumstances as these upon which we look amazed  and anxious.  
1914-5	1914	War has interrupted the means of trade not only but also the processes of  production. In Europe it is destroying men and resources wholesale and upon  a scale unprecedented and appalling, There is reason to fear that the time  is near, if it be not already at hand, when several of the countries of  Europe will find it difficult to do for their people what they have  hitherto been always easily able to do,--many essential and fundamental  things. At any rate, they will need our help and our manifold services as  they have never needed them before; and we should be ready, more fit and  ready than we have ever been.  
1914-6	1914	It is of equal consequence that the nations whom Europe has usually  supplied with innumerable articles of manufacture and commerce of which  they are in constant need and without which their economic development  halts and stands still can now get only a small part of what they formerly  imported and eagerly look to us to supply their all but empty markets. This  is particularly true of our own neighbors, the States, great and small, of  Central and South America. Their lines of trade have hitherto run chiefly  athwart the seas, not to our ports but to the ports of Great Britain and of  the older continent of Europe. I do not stop to inquire why, or to make any  comment on probable causes. What interests us just now is not the  explanation but the fact, and our duty and opportunity in the presence of  it. Here are markets which we must supply, and we must find the means of  action. The United States, this great people for whom we speak and act,  should be ready, as never before, to serve itself and to serve mankind;  ready with its resources, its energies, its forces of production, and its  means of distribution.  
1914-7	1914	It is a very practical matter, a matter of ways and means. We have the  resources, but are we fully ready to use them? And, if we can make ready  what we have, have we the means at hand to distribute it? We are not fully  ready; neither have we the means of distribution. We are willing, but we  are not fully able. We have the wish to serve and to serve greatly,  generously; but we are not prepared as we should be. We are not ready to  mobilize our resources at once. We are not prepared to use them immediately  and at their best, without delay and without waste.  
1914-8	1914	To speak plainly, we have grossly erred in the way in which we have stunted  and hindered the development of our merchant marine. And now, when we need  ships, we have not got them. We have year after year debated, without end  or conclusion, the best policy to pursue with regard to the use of the ores  and forests and water powers of our national domain in the rich States of  the West, when we should have acted; and they are still locked up. The key  is still turned upon them, the door shut fast at which thousands of  vigorous men, full of initiative, knock clamorously for admittance. The  water power of our navigable streams outside the national domain also, even  in the eastern States, where we have worked and planned for generations, is  still not used as it might be, because we will and we won't; because the  laws we have made do not intelligently balance encouragement against  restraint. We withhold by regulation.  
1914-9	1914	I have come to ask you to remedy and correct these mistakes and omissions,  even at this short session of a Congress which would certainly seem to have  done all the work that could reasonably be expected of it. The time and the  circumstances are extraordinary, and so must our efforts be also.  
1914-10	1914	Fortunately, two great measures, finely conceived, the one to unlock, with  proper safeguards, the resources of the national domain, the other to  encourage the use of the navigable waters outside that domain for the  generation of power, have already passed the House of Representatives and  are ready for immediate consideration and action by the Senate. With the  deepest earnestness I urge their prompt passage. In them both we turn our  backs upon hesitation and makeshift and formulate a genuine policy of use  and conservation, in the best sense of those words. We owe the one measure  not only to the people of that great western country for whose free and  systematic development, as it seems to me, our legislation has done so  little, but also to the people of the Nation as a whole; and we as clearly  owe the other fulfillment of our repeated promises that the water power of  the country should in fact as well as in name be put at the disposal of  great industries which can make economical and profitable use of it, the  rights of the public being adequately guarded the while, and monopoly in  the use prevented. To have begun such measures and not completed them would  indeed mar the record of this great Congress very seriously. I hope and  confidently believe that they will be completed.  
1914-11	1914	And there is another great piece of legislation which awaits and should  receive the sanction of the Senate: I mean the bill which gives a larger  measure of self-government to the people of the Philippines. How better, in  this time of anxious questioning and perplexed policy, could we show our  confidence in the principles of liberty, as the source as well as the  expression of life, how better could we demonstrate our own self-possession  and steadfastness in the courses of justice and disinterestedness than by  thus going calmly forward to fulfill our promises to a dependent people,  who will now look more anxiously than ever to see whether we have indeed  the liberality, the unselfishness, the courage, the faith we have boasted  and professed. I can not believe that the Senate will let this great  measure of constructive justice await the action of another Congress. Its  passage would nobly crown the record of these two years of memorable  labor.  
1914-12	1914	But I think that you will agree with me that this does not complete the  toll of our duty. How are we to carry our goods to the empty markets of  which I have spoken if we have not the ships? How are we to build up a  great trade if we have not the certain and constant means of  transportation upon which all profitable and useful commerce depends? And  how are we to get the ships if we wait for the trade to develop without  them? To correct the many mistakes by which we have discouraged and all but  destroyed the merchant marine of the country, to retrace the steps by which  we have.. it seems almost deliberately, withdrawn our flag from the seas..  except where, here and there, a ship of war is bidden carry it or some  wandering yacht displays it, would take a long time and involve many  detailed items of legislation, and the trade which we ought immediately to  handle would disappear or find other channels while we debated the items.  
1914-13	1914	The case is not unlike that which confronted us when our own continent was  to be opened up to settlement and industry, and we needed long lines of  railway, extended means of transportation prepared beforehand, if  development was not to lag intolerably and wait interminably. We lavishly  subsidized the building of transcontinental railroads. We look back upon  that with regret now, because the subsidies led to many scandals of which  we are ashamed; but we know that the railroads had to be built, and if we  had it to do over again we should of course build them, but in another way.  Therefore I propose another way of providing the means of transportation,  which must precede, not tardily follow, the development of our trade with  our neighbor states of America. It may seem a reversal of the natural order  of things, but it is true, that the routes of trade must be actually  opened-by many ships and regular sailings and moderate charges-before  streams of merchandise will flow freely and profitably through them.  
1914-14	1914	Hence the pending shipping bill, discussed at the last session but as yet  passed by neither House. In my judgment such legislation is imperatively  needed and can not wisely be postponed. The Government must open these  gates of trade, and open them wide; open them before it is altogether  profitable to open them, or altogether reasonable to ask private capital to  open them at a venture. It is not a question of the Government monopolizing  the field. It should take action to make it certain that transportation at  reasonable rates will be promptly provided, even where the carriage is not  at first profitable; and then, when the carriage has become sufficiently  profitable to attract and engage private capital, and engage it in  abundance, the Government ought to withdraw. I very earnestly hope that the  Congress will be of this opinion, and that both Houses will adopt this  exceedingly important bill.  
1914-15	1914	The great subject of rural credits still remains to be dealt with, and it  is a matter of deep regret that the difficulties of the subject have seemed  to render it impossible to complete a bill for passage at this session. But  it can not be perfected yet, and therefore there are no other constructive  measures the necessity for which I will at this time call your attention  to; but I would be negligent of a very manifest duty were I not to call the  attention of the Senate to the fact that the proposed convention for safety  at sea awaits its confirmation and that the limit fixed in the convention  itself for its acceptance is the last day of the present month. The  conference in which this convention originated was called by the United  States; the representatives of the United States played a very influential  part indeed in framing the provisions of the proposed convention; and those  provisions are in themselves for the most part admirable. It would hardly  be consistent with the part we have played in the whole matter to let it  drop and go by the board as if forgotten and neglected. It was ratified in  May by the German Government and in August by the Parliament of Great  Britain. It marks a most hopeful and decided advance in international  civilization. We should show our earnest good faith in a great matter by  adding our own acceptance of it.  
1914-16	1914	There is another matter of which I must make special mention, if I am to  discharge my conscience, lest it should escape your attention. It may seem  a very small thing. It affects only a single item of appropriation. But  many human lives and many great enterprises hang upon it. It is the matter  of making adequate provision for the survey and charting of our coasts. It  is immediately pressing and exigent in connection with the immense coast  line of Alaska, a coast line greater than that of the United States  themselves, though it is also very important indeed with regard to the  older coasts of the continent. We can not use our great Alaskan domain,  ships will not ply thither, if those coasts and their many hidden dangers  are not thoroughly surveyed and charted. The work is incomplete at almost  every point. Ships and lives have been lost in threading what were supposed  to be well-known main channels. We have not provided adequate vessels or  adequate machinery for the survey and charting. We have used old vessels  that were not big enough or strong enough and which were so nearly  unseaworthy that our inspectors would not have allowed private owners to  send them to sea. This is a matter which, as I have said, seems small, but  is in reality very great. Its importance has only to be looked into to be  appreciated.  
1914-17	1914	Before I close may I say a few words upon two topics, much discussed out of  doors, upon which it is highly important that our judgment should be clear,  definite, and steadfast?  
1914-18	1914	One of these is economy in government expenditures. The duty of economy is  not debatable. It is manifest and imperative. In the appropriations we pass  we are spending the money of the great people whose servants we are,-not  our own. We are trustees and responsible stewards in the spending. The only  thing debatable and upon which we should be careful to make our thought and  purpose clear is the kind of economy demanded of us. I assert with the  greatest confidence that the people of the United States are not jealous of  the amount their Government costs if they are sure that they get what they  need and desire for the outlay, that the money is being spent for objects  of which they approve, and that it is being applied with good business  sense and management.  
1914-19	1914	Governments grow, piecemeal, both in their tasks and in the means by which  those tasks are to be performed, and very few Governments are organized, I  venture to say, as wise and experienced business men would organize them if  they had a clean sheet of paper to write upon. Certainly the Government of  the United States is not. I think that it is generally agreed that there  should be a systematic reorganization and reassembling of its parts so as  to secure greater efficiency and effect considerable savings in expense.  But the amount of money saved in that way would, I believe, though no doubt  considerable in itself, running, it may be, into the millions, be  relatively small,-small, I mean, in proportion to the total necessary  outlays of the Government. It would be thoroughly worth effecting, as every  saving would, great or small. Our duty is not altered by the scale of the  saving. But my point is that the people of the United States do not wish to  curtail the activities of this Government; they wish, rather, to enlarge  them; and with every enlargement, with the mere growth, indeed, of the  country itself, there must come, of course, the inevitable increase of  expense. The sort of economy we ought to practice may be effected, and  ought to be effected, by a careful study and assessment of the tasks to be  performed; and the money spent ought to be made to yield the best possible  returns in efficiency and achievement. And, like good stewards, we should  so account for every dollar of our appropriations as to make it perfectly  evident what it was spent for and in what way it was spent.  
1914-20	1914	It is not expenditure but extravagance that we should fear being criticized  for; not paying for the legitimate enterprise and undertakings of a great  Government whose people command what it should do, but adding what will  benefit only a few or pouring money out for what need not have been  undertaken at all or might have been postponed or better and more  economically conceived and carried out. The Nation is not niggardly; it is  very generous. It will chide us only if we forget for whom we pay money out  and whose money it is we pay. These are large and general standards, but  they are not very difficult of application to particular cases.  
1914-21	1914	The other topic I shall take leave to mention goes deeper into the  principles of our national life and policy. It is the subject of national  defense.  
1914-22	1914	It can not be discussed without first answering some very searching  questions. It is said in some quarters that we are not prepared for war.  What is meant by being prepared? Is it meant that we are not ready upon  brief notice to put a nation in the field, a nation of men trained to arms?  Of course we are not ready to do that; and we shall never be in time of  peace so long as we retain our present political principles and  institutions. And what is it that it is suggested we should be prepared to  do? To defend ourselves against attack? We have always found means to do  that, and shall find them whenever it is necessary without calling our  people away from their necessary tasks to render compulsory military  service in times of peace.  
1914-23	1914	Allow me to speak with great plainness and directness upon this great  matter and to avow my convictions with deep earnestness. I have tried to  know what America is, what her people think, what they are, what they most  cherish and hold dear. I hope that some of their finer passions are in my  own heart,--some of the great conceptions and desires which gave birth to  this Government and which have made the voice of this people a voice of  peace and hope and liberty among the peoples of the world, and that,  speaking my own thoughts, I shall, at least in part, speak theirs also,  however faintly and inadequately, upon this vital matter.  
1914-24	1914	We are at peace with all the world. No one who speaks counsel based on fact  or drawn from a just and candid interpretation of realities can say that  there is reason to fear that from any quarter our independence or the  integrity of our territory is threatened. Dread of the power of any other  nation we are incapable of. We are not jealous of rivalry in the fields of  commerce or of any other peaceful achievement. We mean to live our own  lives as we will; but we mean also to let live. We are, indeed, a true  friend to all the nations of the world, because we threaten none, covet the  possessions of none, desire the overthrow of none. Our friendship can be  accepted and is accepted without reservation, because it is offered in a  spirit and for a purpose which no one need ever question or suspect.  Therein lies our greatness. We are the champions of peace and of concord.  And we should be very jealous of this distinction which we have sought to  earn. Just now we should be particularly jealous of it because it is our  dearest present hope that this character and reputation may presently, in  God's providence, bring us an opportunity such as has seldom been  vouchsafed any nation, the opportunity to counsel and obtain peace in the  world and reconciliation and a healing settlement of many a matter that has  cooled and interrupted the friendship of nations. This is the time above  all others when we should wish and resolve to keep our strength by  self-possession, our influence by preserving our ancient principles of  action.  
1914-25	1914	From the first we have had a clear and settled policy with regard to  military establishments. We never have had, and while we retain our present  principles and ideals we never shall have, a large standing army. If asked,  Are you ready to defend yourselves? we reply, Most assuredly, to the  utmost; and yet we shall not turn America into a military camp. We will not  ask our young men to spend the best years of their lives making soldiers of  themselves. There is another sort of energy in us. It will know how to  declare itself and make itself effective should occasion arise. And  especially when half the world is on fire we shall be careful to make our  moral insurance against the spread of the conflagration very definite and  certain and adequate indeed.  
1914-26	1914	Let us remind ourselves, therefore, of the only thing we can do or will do.  We must depend in every time of national peril, in the future as in the  past, not upon a standing army, nor yet upon a reserve army, but upon a  citizenry trained and accustomed to arms. It will be right enough, right  American policy, based upon our accustomed principles and practices, to  provide a system by which every citizen who will volunteer for the training  may be made familiar with the use of modern arms, the rudiments of drill  and maneuver, and the maintenance and sanitation of camps. We should  encourage such training and make it a means of discipline which our young  men will learn to value. It is right that we should provide it not only,  but that we should make it as attractive as possible, and so induce our  young men to undergo it at such times as they can command a little freedom  and can seek the physical development they need, for mere health's sake, if  for nothing more. Every means by which such things can be stimulated is  legitimate, and such a method smacks of true American ideas. It is right,  too, that the National Guard of the States should be developed and  strengthened by every means which is not inconsistent with our obligations  to our own people or with the established policy of our Government. And  this, also, not because the time or occasion specially calls for such  measures, but because it should be our constant policy to make these  provisions for our national peace and safety.  
1914-27	1914	More than this carries with it a reversal of the whole history and  character of our polity. More than this, proposed at this time, permit me  to say, would mean merely that we had lost our self-possession, that we had  been thrown off our balance by a war with which we have nothing to do,  whose causes can not touch us, whose very existence affords us  opportunities of friendship and disinterested service which should make us  ashamed of any thought of hostility or fearful preparation for trouble.  This is assuredly the opportunity for which a people and a government like  ours were raised up, the opportunity not only to speak but actually to  embody and exemplify the counsels of peace and amity and the lasting  concord which is based on justice and fair and generous dealing.  
1914-28	1914	A powerful navy we have always regarded as our proper and natural means of  defense, and it has always been of defense that we have thought, never of  aggression or of conquest. But who shall tell us now what sort of navy to  build? We shall take leave to be strong upon the seas, in the future as in  the past; and there will be no thought of offense or of provocation in  that. Our ships are our natural bulwarks. When will the experts tell us  just what kind we should construct-and when will they be right for ten  years together, if the relative efficiency of craft of different kinds and  uses continues to change as we have seen it change under our very eyes in  these last few months?  
1914-29	1914	But I turn away from the subject. It is not new. There is no new need to  discuss it. We shall not alter our attitude toward it because some amongst  us are nervous and excited. We shall easily and sensibly agree upon a  policy of defense. The question has not changed its aspects because the  times are not normal. Our policy will not be for an occasion. It will be  conceived as a permanent and settled thing, which we will pursue at all  seasons, without haste and after a fashion perfectly consistent with the  peace of the world, the abiding friendship of states, and the unhampered  freedom of all with whom we deal. Let there be no misconception. The  country has been misinformed. We have not been negligent of national  defense. We are not unmindful of the great responsibility resting upon us.  We shall learn and profit by the lesson of every experience and every new  circumstance; and what is needed will be adequately done.  
1914-30	1914	I close, as I began, by reminding you of the great tasks and duties of  peace which challenge our best powers and invite us to build what will  last, the tasks to which we can address ourselves now and at all times with  free-hearted zest and with all the finest gifts of constructive wisdom we  possess. To develop our life and our resources; to supply our own people,  and the people of the world as their need arises, from the abundant plenty  of our fields and our marts of trade to enrich the commerce of our own  States and of the world with the products of our mines, our farms, and our  factories, with the creations of our thought and the fruits of our  character,-this is what will hold our attention and our enthusiasm  steadily, now and in the years to come, as we strive to show in our life as  a nation what liberty and the inspirations of an emancipated spirit may do  for men and for societies, for individuals, for states, and for mankind.  
1915-1	1915	GENTLEMEN OF THE CONGRESS:  
1915-2	1915	Since I last had the privilege of addressing you on the state of the Union  the war of nations on the other side of the sea, which had then only begun  to disclose its portentous proportions, has extended its threatening and  sinister scope until it has swept within its flame some portion of every  quarter of the globe, not excepting our own hemisphere, has altered the  whole face of international affairs, and now presents a prospect of  reorganization and reconstruction such as statesmen and peoples have never  been called upon to attempt before.  
1915-3	1915	We have stood apart, studiously neutral. It was our manifest duty to do so.  Not only did we have no part or interest in the policies which seem to have  brought the conflict on; it was necessary, if a universal catastrophe was  to be avoided, that a limit should be set to the sweep of destructive war  and that some part of the great family of nations should keep the processes  of peace alive, if only to prevent collective economic ruin and the  breakdown throughout the world of the industries by which its populations  are fed and sustained. It was manifestly the duty of the self-governed  nations of this hemisphere to redress, if possible, the balance of economic  loss and confusion in the other, if they could do nothing more. In the day  of readjustment and recuperation we earnestly hope and believe that they  can be of infinite service.  
1915-4	1915	In this neutrality, to which they were bidden not only by their separate  life and their habitual detachment from the politics of Europe but also by  a clear perception of international duty, the states of America have become  conscious of a new and more vital community of interest and moral  partnership in affairs, more clearly conscious of the many common  sympathies and interests and duties which bid them stand together.  
1915-5	1915	There was a time in the early days of our own great nation and of the  republics fighting their way to independence in Central and South America  when the government of the United States looked upon itself as in some sort  the guardian of the republics to the South of her as against any  encroachments or efforts at political control from the other side of the  water; felt it its duty to play the part even without invitation from them;  and I think that we can claim that the task was undertaken with a true and  disinterested enthusiasm for the freedom of the Americas and the unmolested  Self-government of her independent peoples. But it was always difficult to  maintain such a role without offense to the pride of the peoples whose  freedom of action we sought to protect, and without provoking serious  misconceptions of our motives, and every thoughtful man of affairs must  welcome the altered circumstances of the new day in whose light we now  stand, when there is no claim of guardianship or thought of wards but,  instead, a full and honorable association as of partners between ourselves  and our neighbors, in the interest of all America, north and south. Our  concern for the independence and prosperity of the states of Central and  South America is not altered. We retain unabated the spirit that has  inspired us throughout the whole life of our government and which was so  frankly put into words by President Monroe. We still mean always to make a  common cause of national independence and of political liberty in America.  But that purpose is now better understood so far as it concerns ourselves.  It is known not to be a selfish purpose. It is known to have in it no  thought of taking advantage of any government in this hemisphere or playing  its political fortunes for our own benefit. All the governments of America  stand, so far as we are concerned, upon a footing of genuine equality and  unquestioned independence.  
1915-6	1915	We have been put to the test in the case of Mexico, and we have stood the  test. Whether we have benefited Mexico by the course we have pursued  remains to be seen. Her fortunes are in her own hands. But we have at least  proved that we will not take advantage of her in her distress and undertake  to impose upon her an order and government of our own choosing. Liberty is  often a fierce and intractable thing, to which no bounds can be set, and to  which no bounds of a few men's choosing ought ever to be set. Every  American who has drunk at the true fountains of principle and tradition  must subscribe without reservation to the high doctrine of the Virginia  Bill of Rights, which in the great days in which our government was set up  was everywhere amongst us accepted as the creed of free men. That doctrine  is, "That government is, or ought to be, instituted for the common benefit,  protection, and security of the people, nation, or community"; that "of all  the various modes and forms of government, that is the best which is  capable of producing the greatest degree of happiness and safety, and is  most effectually secured against the danger of maladministration; and that,  when any government shall be found inadequate or contrary to these  purposes, a majority of the community hath an indubitable, inalienable, and  indefeasible right to reform, alter, or abolish it, in such manner as shall  be judged most conducive to the public weal." We have unhesitatingly  applied that heroic principle to the case of Mexico, and now hopefully  await the rebirth of the troubled Republic, which had so much of which to  purge itself and so little sympathy from any outside quarter in the radical  but necessary process. We will aid and befriend Mexico, but we will not  coerce her; and our course with regard to her ought to be sufficient proof  to all America that we seek no political suzerainty or selfish control.  
1915-7	1915	The moral is, that the states of America are not hostile rivals but  cooperating friends, and that their growing sense of community or interest,  alike in matters political and in matters economic, is likely to give them  a new significance as factors in international affairs and in the political  history of the world. It presents them as in a very deep and true sense a  unit in world affairs, spiritual partners, standing together because  thinking together, quick with common sympathies and common ideals.  Separated they are subject to all the cross currents of the confused  politics of a world of hostile rivalries; united in spirit and purpose they  cannot be disappointed of their peaceful destiny.  
1915-8	1915	This is Pan-Americanism. It has none of the spirit of empire in it. It is  the embodiment, the effectual embodiment, of the spirit of law and  independence and liberty and mutual service.  
1915-9	1915	A very notable body of men recently met in the City of Washington, at the  invitation and as the guests of this Government, whose deliberations are  likely to be looked back to as marking a memorable turning point in the  history of America. They were representative spokesmen of the several  independent states of this hemisphere and were assembled to discuss the  financial and commercial relations of the republics of the two continents  which nature and political fortune have so intimately linked together. I  earnestly recommend to your perusal the reports of their proceedings and of  the actions of their committees. You will get from them, I think, a fresh  conception of the ease and intelligence and advantage with which Americans  of both continents may draw together in practical cooperation and of what  the material foundations of this hopeful partnership of interest must  consist,-of how we should build them and of how necessary it is that we  should hasten their building.  
1915-10	1915	There is, I venture to point out, an especial significance just now  attaching to this whole matter of drawing the Americans together in bonds  of honorable partnership and mutual advantage because of the economic  readjustments which the world must inevitably witness within the next  generation, when peace shall have at last resumed its healthful tasks. In  the performance of these tasks I believe the Americas to be destined to  play their parts together. I am interested to fix your attention on this  prospect now because unless you take it within your view and permit the  full significance of it to command your thought I cannot find the right  light in which to set forth the particular matter that lies at the very  font of my whole thought as I address you to-day. I mean national defense.  
1915-11	1915	No one who really comprehends the spirit of the great people for whom we  are appointed to speak can fail to perceive that their passion is for  peace, their genius best displayed in the practice of the arts of peace.  Great democracies are not belligerent. They do not seek or desire war.  Their thought is of individual liberty and of the free labor that supports  life and the uncensored thought that quickens it. Conquest and dominion are  not in our reckoning, or agreeable to our principles. But just because we  demand unmolested development and the undisturbed government of our own  lives upon our own principles of right and liberty, we resent, from  whatever quarter it may come, the aggression we ourselves will not  practice. We insist upon security in prosecuting our self-chosen lines of  national development. We do more than that. We demand it also for others.  We do not confine our enthusiasm for individual liberty and free national  development to the incidents and movements of affairs which affect only  ourselves. We feel it wherever there is a people that tries to walk in  these difficult paths of independence and right. From the first we have  made common cause with all partisans of liberty on this side the sea, and  have deemed it as important that our neighbors should be free from all  outside domination as that we ourselves should be. We have set America  aside as a whole for the uses of independent nations and political freemen.  
1915-12	1915	Out of such thoughts grow all our policies. We regard war merely as a means  of asserting the rights of a people against aggression. And we are as  fiercely jealous of coercive or dictatorial power within our own nation as  of aggression from without. We will not maintain a standing army except for  uses which are as necessary in times of peace as in times of war; and we  shall always see to it that our military peace establishment is no larger  than is actually and continuously needed for the uses of days in which no  enemies move against us. But we do believe in a body of free citizens ready  and sufficient to take care of themselves and of the governments which they  have set up to serve them. In our constitutions themselves we have  commanded that "the right of the people to keep and bear arms shall not be  infringed," and our confidence has been that our safety in times of danger  would lie in the rising of the nation to take care of itself, as the  farmers rose at Lexington.  
1915-13	1915	But war has never been a mere matter of men and guns. It is a thing of  disciplined might. If our citizens are ever to fight effectively upon a  sudden summons, they must know how modern fighting is done, and what to do  when the summons comes to render themselves immediately available and  immediately effective. And the government must be their servant in this  matter, must supply them with the training they need to take care of  themselves and of it. The military arm of their government, which they will  not allow to direct them, they may properly use to serve them and make  their independence secure,-and not their own independence merely but the  rights also of those with whom they have made common cause, should they  also be put in jeopardy. They must be fitted to play the great role in the  world, and particularly in this hemisphere, for which they are qualified by  principle and by chastened ambition to play.  
1915-14	1915	It is with these ideals in mind that the plans of the Department of War for  more adequate national defense were conceived which will be laid before  you, and which I urge you to sanction and put into effect as soon as they  can be properly scrutinized and discussed. They seem to me the essential  first steps, and they seem to me for the present sufficient.  
1915-15	1915	They contemplate an increase of the standing force of the regular army from  its present strength of five thousand and twenty-three officers and one  hundred and two thousand nine hundred and eighty-five enlisted men of all  services to a strength of seven thousand one hundred and thirty-six  officers and one hundred and thirty-four thousand seven hundred and seven  enlisted men, or 141,843, all told, all services, rank and file, by the  addition of fifty-two companies of coast artillery, fifteen companies of  engineers, ten regiments of infantry, four regiments of field artillery,  and four aero squadrons, besides seven hundred and fifty officers required  for a great variety of extra service, especially the all important duty of  training the citizen force of which I shall presently speak, seven hundred  and ninety-two noncommissioned officers for service in drill, recruiting  and the like, and the necessary quota of enlisted men for the Quartermaster  Corps, the Hospital Corps, the Ordnance Department, and other similar  auxiliary services. These are the additions necessary to render the army  adequate for its present duties, duties which it has to perform not only  upon our own continental coasts and borders and at our interior army posts,  but also in the Philippines, in the Hawaiian Islands, at the Isthmus, and  in Porto Rico.  
1915-16	1915	By way of making the country ready to assert some part of its real power  promptly and upon a larger scale, should occasion arise, the plan also  contemplates supplementing the army by a force of four hundred thousand  disciplined citizens, raised in increments of one hundred and thirty-three  thousand a year throughout a period of three years. This it is proposed to  do by a process of enlistment under which the serviceable men of the  country would be asked to bind themselves to serve with the colors for  purposes of training for short periods throughout three years, and to come  to the colors at call at any time throughout an additional "furlough"  period of three years. This force of four hundred thousand men would be  provided with personal accoutrements as fast as enlisted and their  equipment for the field made ready to be supplied at any time. They would  be assembled for training at stated intervals at convenient places in  association with suitable units of the regular army. Their period of annual  training would not necessarily exceed two months in the year.  
1915-17	1915	It would depend upon the patriotic feeling of the younger men of the  country whether they responded to such a call to service or not. It would  depend upon the patriotic spirit of the employers of the country whether  they made it possible for the younger men in their employ to respond under  favorable conditions or not. I, for one, do not doubt the patriotic  devotion either of our young men or of those who give them  employment,--those for whose benefit and protection they would in fact  enlist. I would look forward to the success of such an experiment with  entire confidence.  
1915-18	1915	At least so much by way of preparation for defense seems to me to be  absolutely imperative now. We cannot do less.  
1915-19	1915	The programme which will be laid before you by the Secretary of the Navy is  similarly conceived. It involves only a shortening of the time within which  plans long matured shall be carried out; but it does make definite and  explicit a programme which has heretofore been only implicit, held in the  minds of the Committees on Naval Affairs and disclosed in the debates of  the two Houses but nowhere formulated or formally adopted. It seems to me  very clear that it will be to the advantage of the country for the Congress  to adopt a comprehensive plan for putting the navy upon a final footing of  strength and efficiency and to press that plan to completion within the  next five years. We have always looked to the navy of the country as our  first and chief line of defense; we have always seen it to be our manifest  course of prudence to be strong on the seas. Year by year we have been  creating a navy which now ranks very high indeed among the navies of the  maritime nations. We should now definitely determine how we shall complete  what we have begun, and how soon.  
1915-20	1915	The programme to be laid before you contemplates the construction within  five years of ten battleships, six battle cruisers, ten scout cruisers,  fifty destroyers, fifteen fleet submarines, eighty-five coast submarines,  four gunboats, one hospital ship, two ammunition ships, two fuel oil ships,  and one repair ship. It is proposed that of this number we shall the first  year provide for the construction of two battleships, two battle cruisers,  three scout cruisers, fifteen destroyers, five fleet submarines,  twenty-five coast submarines, two gunboats, and one hospital ship; the  second year, two battleships, one scout cruiser, ten destroyers, four fleet  submarines, fifteen coast submarines, one gunboat, and one fuel oil ship;  the third year, two battleships, one battle cruiser, two scout cruisers,  five destroyers, two fleet sub marines, and fifteen coast submarines; the  fourth year, two battleships, two battle cruisers, two scout cruisers, ten  destroyers, two fleet submarines, fifteen coast submarines, one ammunition  ship, and one fuel oil ship; and the fifth year, two battleships, one  battle cruiser, two scout cruisers, ten destroyers, two fleet submarines,  fifteen coast submarines, one gunboat, one ammunition ship, and one repair  ship.  
1915-21	1915	The Secretary of the Navy is asking also for the immediate addition to the  personnel of the navy of seven thousand five hundred sailors, twenty-five  hundred apprentice seamen, and fifteen hundred marines. This increase would  be sufficient to care for the ships which are to be completed within the  fiscal year 1917 and also for the number of men which must be put in  training to man the ships which will be completed early in 1918. It is also  necessary that the number of midshipmen at the Naval academy at Annapolis  should be increased by at least three hundred in order that the force of  officers should be more rapidly added to; and authority is asked to  appoint, for engineering duties only, approved graduates of engineering  colleges, and for service in the aviation corps a certain number of men  taken from civil life.  
1915-22	1915	If this full programme should be carried out we should have built or  building in 1921, according to the estimates of survival and standards of  classification followed by the General Board of the Department, an  effective navy consisting of twenty-seven battleships of the first line,  six battle cruisers, twenty-five battleships of the second line, ten  armored cruisers, thirteen scout cruisers, five first class cruisers, three  second class cruisers, ten third class cruisers, one hundred and eight  destroyers, eighteen fleet submarines, one hundred and fifty-seven coast  submarines, six monitors, twenty gunboats, four supply ships, fifteen fuel  ships, four transports, three tenders to torpedo vessels, eight vessels of  special types, and two ammunition ships. This would be a navy fitted to our  needs and worthy of our traditions.  
1915-23	1915	But armies and instruments of war are only part of what has to be  considered if we are to provide for the supreme matter of national  self-sufficiency and security in all its aspects. There are other great  matters which will be thrust upon our attention whether we will or not.  There is, for example, a very pressing question of trade and shipping  involved in this great problem of national adequacy. It is necessary for  many weighty reasons of national efficiency and development that we should  have a great merchant marine. The great merchant fleet we once used to make  us rich, that great body of sturdy sailors who used to carry our flag into  every sea, and who were the pride and often the bulwark of the nation, we  have almost driven out of existence by inexcusable neglect and indifference  and by a hopelessly blind and provincial policy of so-called economic  protection. It is high time we repaired our mistake and resumed our  commercial independence on the seas.  
1915-24	1915	For it is a question of independence. If other nations go to war or seek to  hamper each other's commerce, our merchants, it seems, are at their mercy,  to do with as they please. We must use their ships, and use them as they  determine. We have not ships enough of our own. We cannot handle our own  commerce on the seas. Our independence is provincial, and is only on land  and within our own borders. We are not likely to be permitted to use even  the ships of other nations in rivalry of their own trade, and are without  means to extend our commerce even where the doors are wide open and our  goods desired. Such a situation is not to be endured. It is of capital  importance not only that the United States should be its own carrier on the  seas and enjoy the economic independence which only an adequate merchant  marine would give it, but also that the American hemisphere as a whole  should enjoy a like independence and self-sufficiency, if it is not to be  drawn into the tangle of European affairs. Without such independence the  whole question of our political unity and self-determination is very  seriously clouded and complicated indeed.  
1915-25	1915	Moreover, we can develop no true or effective American policy without ships  of our own,--not ships of war, but ships of peace, carrying goods and  carrying much more: creating friendships and rendering indispensable  services to all interests on this side the water. They must move constantly  back and forth between the Americas. They are the only shuttles that can  weave the delicate fabric of sympathy, comprehension, confidence, and  mutual dependence in which we wish to clothe our policy of America for  Americans.  
1915-26	1915	The task of building up an adequate merchant marine for America private  capital must ultimately undertake and achieve, as it has undertaken and  achieved every other like task amongst us in the past, with admirable  enterprise, intelligence, and vigor; and it seems to me a manifest dictate  of wisdom that we should promptly remove every legal obstacle that may  stand in the way of this much to be desired revival of our old independence  and should facilitate in every possible way the building, purchase, and  American registration of ships. But capital cannot accomplish this great  task of a sudden. It must embark upon it by degrees, as the opportunities  of trade develop. Something must be done at once; done to open routes and  develop opportunities where they are as yet undeveloped; done to open the  arteries of trade where the currents have not yet learned to  run,-especially between the two American continents, where they are,  singularly enough, yet to be created and quickened; and it is evident that  only the government can undertake such beginnings and assume the initial  financial risks. When the risk has passed and private capital begins to  find its way in sufficient abundance into these new channels, the  government may withdraw. But it cannot omit to begin. It should take the  first steps, and should take them at once. Our goods must not lie piled up  at our ports and stored upon side tracks in freight cars which are daily  needed on the roads; must not be left without means of transport to any  foreign quarter. We must not await the permission of foreign ship-owners  and foreign governments to send them where we will.  
1915-27	1915	With a view to meeting these pressing necessities of our commerce and  availing ourselves at the earliest possible moment of the present  unparalleled opportunity of linking the two Americas together in bonds of  mutual interest and service, an opportunity which may never return again if  we miss it now, proposals will be made to the present Congress for the  purchase or construction of ships to be owned and directed by the  government similar to those made to the last Congress, but modified in some  essential particulars. I recommend these proposals to you for your prompt  acceptance with the more confidence because every month that has elapsed  since the former proposals were made has made the necessity for such action  more and more manifestly imperative. That need was then foreseen; it is now  acutely felt and everywhere realized by those for whom trade is waiting but  who can find no conveyance for their goods. I am not so much interested in  the particulars of the programme as I am in taking immediate advantage of  the great opportunity which awaits us if we will but act in this emergency.  In this matter, as in all others, a spirit of common counsel should  prevail, and out of it should come an early solution of this pressing  problem.  
1915-28	1915	There is another matter which seems to me to be very intimately associated  with the question of national safety and preparation for defense. That is  our policy towards the Philippines and the people of Porto Rico. Our  treatment of them and their attitude towards us are manifestly of the first  consequence in the development of our duties in the world and in getting a  free hand to perform those duties. We must be free from every unnecessary  burden or embarrassment; and there is no better way to be clear of  embarrassment than to fulfil our promises and promote the interests of  those dependent on us to the utmost. Bills for the alteration and reform of  the government of the Philippines and for rendering fuller political  justice to the people of Porto Rico were submitted to the sixty-third  Congress. They will be submitted also to you. I need not particularize  their details. You are most of you already familiar with them. But I do  recommend them to your early adoption with the sincere conviction that  there are few measures you could adopt which would more serviceably clear  the way for the great policies by which we wish to make good, now and  always, our right to lead in enterprises of peace and good will and  economic and political freedom.  
1915-29	1915	The plans for the armed forces of the nation which I have outlined, and for  the general policy of adequate preparation for mobilization and defense,  involve of course very large additional expenditures of money,-expenditures  which will considerably exceed the estimated revenues of the government. It  is made my duty by law, whenever the estimates of expenditure exceed the  estimates of revenue, to call the attention of the Congress to the fact and  suggest any means of meeting the deficiency that it may be wise or possible  for me to suggest. I am ready to believe that it would be my duty to do so  in any case; and I feel particularly bound to speak of the matter when it  appears that the deficiency will arise directly out of the adoption by the  Congress of measures which I myself urge it to adopt. Allow me, therefore,  to speak briefly of the present state of the Treasury and of the fiscal  problems which the next year will probably disclose.  
1915-30	1915	On the thirtieth of June last there was an available balance in the general  fund of the Treasury Of $104,170,105.78. The total estimated receipts for  the year 1916, on the assumption that the emergency revenue measure passed  by the last Congress will not be extended beyond its present limit, the  thirty-first of December, 1915, and that the present duty of one cent per  pound on sugar will be discontinued after the first of May, 1916, will be  $670,365,500. The balance of June last and these estimated revenues come,  therefore, to a grand total of $774,535,605-78. The total estimated  disbursements for the present fiscal year, including twenty-five millions  for the Panama Canal, twelve millions for probable deficiency  appropriations, and fifty thousand dollars for miscellaneous debt  redemptions, will be $753,891,000; and the balance in the general fund of  the Treasury will be reduced to $20,644,605.78. The emergency revenue act,  if continued beyond its present time limitation, would produce, during the  half year then remaining, about forty-one millions. The duty of one cent  per pound on sugar, if continued, would produce during the two months of  the fiscal year remaining after the first of May, about fifteen millions.  These two sums, amounting together to fifty-six millions, if added to the  revenues of the second half of the fiscal year, would yield the Treasury at  the end of the year an available balance Of $76,644,605-78.  
1915-31	1915	The additional revenues required to carry out the programme of military and  naval preparation of which I have spoken, would, as at present estimated,  be for the fiscal year, 1917, $93,800,000. Those figures, taken with the  figures for the present fiscal year which I have already given, disclose  our financial problem for the year 1917. Assuming that the taxes imposed by  the emergency revenue act and the present duty on sugar are to be  discontinued, and that the balance at the close of the present fiscal year  will be only $20,644,605.78, that the disbursements for the Panama Canal  will again be about twenty-five millions, and that the additional  expenditures for the army and navy are authorized by the Congress, the  deficit in the general fund of the Treasury on the thirtieth of June, 1917,  will be nearly two hundred and thirty-five millions. To this sum at least  fifty millions should be added to represent a safe working balance for the  Treasury, and twelve millions to include the usual deficiency estimates in  1917; and these additions would make a total deficit of some two hundred  and ninety-seven millions. If the present taxes should be continued  throughout this year and the next, however, there would be a balance in the  Treasury of some seventy-six and a half millions at the end of the present  fiscal year, and a deficit at the end of the next year of only some fifty  millions, or, reckoning in sixty-two millions for deficiency appropriations  and a safe Treasury balance at the end of the year, a total deficit of some  one hundred and twelve millions. The obvious moral of the figures is that  it is a plain counsel of prudence to continue all of the present taxes or  their equivalents, and confine ourselves to the problem of providing one  hundred and twelve millions of new revenue rather than two hundred and  ninety-seven millions.  
1915-32	1915	How shall we obtain the new revenue? We are frequently reminded that there  are many millions of bonds which the Treasury is authorized under existing  law to sell to reimburse the sums paid out of current revenues for the  construction of the Panama Canal; and it is true that bonds to the amount  of approximately $222,000,000 are now available for that purpose. Prior to  1913, $134,631,980 of these bonds had actually been sold to recoup the  expenditures at the Isthmus; and now constitute a considerable item of the  public debt. But I, for one, do not believe that the people of this country  approve of postponing the payment of their bills. Borrowing money is  short-sighted finance. It can be justified only when permanent things are  to be accomplished which many generations will certainly benefit by and  which it seems hardly fair that a single generation should pay for. The  objects we are now proposing to spend money for cannot be so classified,  except in the sense that everything wisely done may be said to be done in  the interest of posterity as well as in our own. It seems to me a clear  dictate of prudent statesmanship and frank finance that in what we are now,  I hope, about to undertake we should pay as we go. The people of the  country are entitled to know just what burdens of taxation they are to  carry, and to know from the outset, now. The new bills should be paid by  internal taxation.  
1915-33	1915	To what sources, then, shall we turn? This is so peculiarly a question  which the gentlemen of the House of Representatives are expected under the  Constitution to propose an answer to that you will hardly expect me to do  more than discuss it in very general terms. We should be following an  almost universal example of modern governments if we were to draw the  greater part or even the whole of the revenues we need from the income  taxes. By somewhat lowering the present limits of exemption and the figure  at which the surtax shall begin to be imposed, and by increasing, step by  step throughout the present graduation, the surtax itself, the income taxes  as at present apportioned would yield sums sufficient to balance the books  of the Treasury at the end of the fiscal year 1917 without anywhere making  the burden unreasonably or oppressively heavy. The precise reckonings are  fully and accurately set out in the report of the Secretary of the Treasury  which will be immediately laid before you.  
1915-34	1915	And there are many additional sources of revenue which can justly be  resorted to without hampering the industries of the country or putting any  too great charge upon individual expenditure. A tax of one cent per gallon  on gasoline and naphtha would yield, at the present estimated production,  $10,000,000; a tax of fifty cents per horse power on automobiles and  internal explosion engines, $15,000,000; a stamp tax on bank cheques,  probably $18,000,000; a tax of twenty-five cents per ton on pig iron,  $10,000,000; a tax of twenty-five cents per ton on fabricated iron and  steel, probably $10,000,000. In a country of great industries like this it  ought to be easy to distribute the burdens of taxation without making them  anywhere bear too heavily or too exclusively upon any one set of persons or  undertakings. What is clear is, that the industry of this generation should  pay the bills of this generation.  
1915-35	1915	I have spoken to you to-day, Gentlemen, upon a single theme, the thorough  preparation of the nation to care for its own security and to make sure of  entire freedom to play the impartial role in this hemisphere and in the  world which we all believe to have been providentially assigned to it. I  have had in my mind no thought of any immediate or particular danger  arising out of our relations with other nations. We are at peace with all  the nations of the world, and there is reason to hope that no question in  controversy between this and other Governments will lead to any serious  breach of amicable relations, grave as some differences of attitude and  policy have been land may yet turn out to be. I am sorry to say that the  gravest threats against our national peace and safety have been uttered  within our own borders. There are citizens of the United States, I blush to  admit, born under other flags but welcomed under our generous  naturalization laws to the full freedom and opportunity of America, who  have poured the poison of disloyalty into the very arteries of our national  life; who have sought to bring the authority and good name of our  Government into contempt, to destroy our industries wherever they thought  it effective for their vindictive purposes to strike at them, and to debase  our politics to the uses of foreign intrigue. Their number is not great as  compared with the whole number of those sturdy hosts by which our nation  has been enriched in recent generations out of virile foreign stock; but it  is great enough to have brought deep disgrace upon us and to have made it  necessary that we should promptly make use of processes of law by which we  may be purged of their corrupt distempers. America never witnessed anything  like this before. It never dreamed it possible that men sworn into its own  citizenship, men drawn out of great free stocks such as supplied some of  the best and strongest elements of that little, but how heroic, nation that  in a high day of old staked its very life to free itself from every  entanglement that had darkened the fortunes of the older nations and set up  a new standard here, that men of such origins and such free choices of  allegiance would ever turn in malign reaction against the Government and  people who had welcomed and nurtured them and seek to make this proud  country once more a hotbed of European passion. A little while ago such a  thing would have seemed incredible. Because it was incredible we made no  preparation for it. We would have been almost ashamed to prepare for it, as  if we were suspicious of ourselves, our own comrades and neighbors! But the  ugly and incredible thing has actually come about and we are without  adequate federal laws to deal with it. I urge you to enact such laws at the  earliest possible moment and feel that in doing so I am urging you to do  nothing less than save the honor and self-respect of the nation. Such  creatures of passion, disloyalty, and anarchy must be crushed out. They are  not many, but they are infinitely malignant, and the hand of our power  should close over them at once. They have formed plots to destroy property,  they have entered into conspiracies against the neutrality of the  Government, they have sought to pry into every confidential transaction of  the Government in order to serve interests alien to our own. It is possible  to deal with these things very effectually. I need not suggest the terms in  which they may be dealt with.  
1915-36	1915	I wish that it could be said that only a few men, misled by mistaken  sentiments of allegiance to the governments under which they were born, had  been guilty of disturbing the self-possession and misrepresenting the  temper and principles of the country during these days of terrible war,  when it would seem that every man who was truly an American would  instinctively make it his duty and his pride to keep the scales of judgment  even and prove himself a partisan of no nation but his own. But it cannot.  There are some men among us, and many resident abroad who, though born and  bred in the United States and calling themselves Americans, have so  forgotten themselves and their honor as citizens as to put their passionate  sympathy with one or the other side in the great European conflict above  their regard for the peace and dignity of the United States. They also  preach and practice disloyalty. No laws, I suppose, can reach corruptions  of the mind and heart; but I should not speak of others without also  speaking of these and expressing the even deeper humiliation and scorn  which every self-possessed and thoughtfully patriotic American must feel  when he thinks of them and of the discredit they are daily bringing upon  us.  
1915-37	1915	While we speak of the preparation of the nation to make sure of her  security and her effective power we must not fall into the patent error of  supposing that her real strength comes from armaments and mere safeguards  of written law. It comes, of course, from her people, their energy, their  success in their undertakings, their free opportunity to use the natural  resources of our great home land and of the lands outside our continental  borders which look to us for protection, for encouragement, and for  assistance in their development; from the organization and freedom and  vitality of our economic life. The domestic questions which engaged the  attention of the last Congress are more vital to the nation in this its  time of test than at any other time. We cannot adequately make ready for  any trial of our strength unless we wisely and promptly direct the force of  our laws into these all-important fields of domestic action. A matter which  it seems to me we should have very much at heart is the creation of the  right instrumentalities by which to mobilize our economic resources in any  time of national necessity. I take it for granted that I do not need your  authority to call into systematic consultation with the directing officers  of the army and navy men of recognized leadership and ability from among  our citizens who are thoroughly familiar, for example, with the  transportation facilities of the country and therefore competent to advise  how they may be coordinated when the need arises, those who can suggest the  best way in which to bring about prompt cooperation among the manufacturers  of the country, should it be necessary, and those who could assist to bring  the technical skill of the country to the aid of the Government in the  solution of particular problems of defense. I only hope that if I should  find it feasible to constitute such an advisory body the Congress would be  willing to vote the small sum of money that would be needed to defray the  expenses that would probably be necessary to give it the clerical and  administrative Machinery with which to do serviceable work.  
1915-38	1915	What is more important is, that the industries and resources of the country  should be available and ready for mobilization. It is the more imperatively  necessary, therefore, that we should promptly devise means for doing what  we have not yet done: that we should give intelligent federal aid and  stimulation to industrial and vocational education, as we have long done in  the large field of our agricultural industry; that, at the same time that  we safeguard and conserve the natural resources of the country we should  put them at the disposal of those who will use them promptly and  intelligently, as was sought to be done in the admirable bills submitted to  the last Congress from its committees on the public lands, bills which I  earnestly recommend in principle to your consideration; that we should put  into early operation some provision for rural credits which will add to the  extensive borrowing facilities already afforded the farmer by the Reserve  Bank Act, adequate instrumentalities by which long credits may be obtained  on land mortgages; and that we should study more carefully than they have  hitherto been studied the right adaptation of our economic arrangements to  changing conditions.  
1915-39	1915	Many conditions about which we I-lave repeatedly legislated are being  altered from decade to decade, it is evident, under our very eyes, and are  likely to change even more rapidly and more radically in the days  immediately ahead of us, when peace has returned to the world and the  nations of Europe once more take up their tasks of commerce and industry  with the energy of those who must bestir themselves to build anew. Just  what these changes will be no one can certainly foresee or confidently  predict. There are no calculable, because no stable, elements in the  problem. The most we can do is to make certain that we have the necessary  instrumentalities of information constantly at our service so that we may  be sure that we know exactly what we are dealing with when we come to act,  if it should be necessary to act at all. We must first certainly know what  it is that we are seeking to adapt ourselves to. I may ask the privilege of  addressing you more at length on this important matter a little later in  your session.  
1915-40	1915	In the meantime may I make this suggestion? The transportation problem is  an exceedingly serious and pressing one in this country. There has from  time to time of late been reason to fear that our railroads would not much  longer be able to cope with it successfully, as at present equipped and  coordinated I suggest that it would be wise to provide for a commission of  inquiry to ascertain by a thorough canvass of the whole question whether  our laws as at present framed and administered are as serviceable as they  might be in the solution of the problem. It is obviously a problem that  lies at the very foundation of our efficiency as a people. Such an inquiry  ought to draw out every circumstance and opinion worth considering and we  need to know all sides of the matter if we mean to do anything in the field  of federal legislation.  
1915-41	1915	No one, I am sure, would wish to take any backward step. The regulation of  the railways of the country by federal commission has had admirable results  and has fully justified the hopes and expectations of those by whom the  policy of regulation was originally proposed. The question is not what  should we undo? It is, whether there is anything else we can do that would  supply us with effective means, in the very process of regulation, for  bettering the conditions under which the railroads are operated and for  making them more useful servants of the country as a whole. It seems to me  that it might be the part of wisdom, therefore, before further legislation  in this field is attempted, to look at the whole problem of coordination  and efficiency in the full light of a fresh assessment of circumstance and  opinion, as a guide to dealing with the several parts of it.  
1915-42	1915	For what we are seeking now, what in my mind is the single thought of this  message, is national efficiency and security. We serve a great nation. We  should serve it in the spirit of its peculiar genius. It is the genius of  common men for self-government, industry, justice, liberty and peace. We  should see to it that it lacks no instrument, no facility or vigor of law,  to make it sufficient to play its part with energy, safety, and assured  success. In this we are no partisans but heralds and prophets of a new age.  
1916-1	1916	GENTLEMEN OF THE CONGRESS:  
1916-2	1916	In fulfilling at this time the duty laid upon me by the Constitution of  communicating to you from time to time information of the state of the  Union and recommending to your consideration such legislative measures as  may be judged necessary and expedient, I shall continue the practice, which  I hope has been acceptable to you, of leaving to the reports of the several  heads of the executive departments the elaboration of the detailed needs of  the public service and confine myself to those matters of more general  public policy with which it seems necessary and feasible to deal at the  present session of the Congress.  
1916-3	1916	I realize the limitations of time under which you will necessarily act at  this session and shall make my suggestions as few as possible; but there  were some things left undone at the last session which there will now be  time to complete and which it seems necessary in the interest of the public  to do at once.  
1916-4	1916	In the first place, it seems to me imperatively necessary that the earliest  possible consideration and action should be accorded the remaining measures  of the program of settlement and regulation which I had occasion to  recommend to you at the close of your last session in view of the public  dangers disclosed by the unaccommodated difficulties which then existed,  and which still unhappily continue to exist, between the railroads of the  country and their locomotive engineers, conductors and trainmen.  
1916-5	1916	I then recommended:  
1916-6	1916	First, immediate provision for the enlargement and administrative  reorganization of the Interstate Commerce Commission along the lines  embodied in the bill recently passed by the House of Representatives and  now awaiting action by the Senate; in order that the Commission may be  enabled to deal with the many great and various duties now devolving upon  it with a promptness and thoroughness which are, with its present  constitution and means of action, practically impossible.  
1916-7	1916	Second, the establishment of an eight-hour day as the legal basis alike of  work and wages in the employment of all railway employes who are actually  engaged in the work of operating trains in interstate transportation.  
1916-8	1916	Third, the authorization of the appointment by the President of a small  body of men to observe actual results in experience of the adoption of the  eight-hour day in railway transportation alike for the men and for the  railroads.  
1916-9	1916	Fourth, explicit approval by the Congress of the consideration by the  Interstate Commerce Commission of an increase of freight rates to meet such  additional expenditures by the railroads as may have been rendered  necessary by the adoption of the eight-hour day and which have not been  offset by administrative readjustments and economies, should the facts  disclosed justify the increase.  
1916-10	1916	Fifth, an amendment of the existing Federal statute which provides for the  mediation, conciliation and arbitration of such controversies as the  present by adding to it a provision that, in case the methods of  accommodation now provided for should fail, a full public investigation of  the merits of every such dispute shall be instituted and completed before a  strike or lockout may lawfully be attempted.  
1916-11	1916	And, sixth, the lodgment in the hands of the Executive of the power, in  case of military necessity, to take control of such portions and such  rolling stock of the railways of the country as may be required for  military use and to operate them for military purposes, with authority to  draft into the military service of the United States such train crews and  administrative officials as the circumstances require for their safe and  efficient use.  
1916-12	1916	The second and third of these recommendations the Congress immediately  acted on: it established the eight-hour day as the legal basis of work and  wages in train service and it authorized the appointment of a commission to  observe and report upon the practical results, deeming these the measures  most immediately needed; but it postponed action upon the other suggestions  until an opportunity should be offered for a more deliberate consideration  of them.  
1916-13	1916	The fourth recommendation I do not deem it necessary to renew. The power of  the Interstate Commerce Commission to grant an increase of rates on the  ground referred to is indisputably clear and a recommendation by the  Congress with regard to such a matter might seem to draw in question the  scope of the commission's authority or its inclination to do justice when  there is no reason to doubt either.  
1916-14	1916	The other suggestions-the increase in the Interstate Commerce Commission's  membership and in its facilities for performing its manifold duties; the  provision for full public investigation and assessment of industrial  disputes, and the grant to the Executive of the power to control and  operate the railways when necessary in time of war or other like public  necessity-I now very earnestly renew.  
1916-15	1916	The necessity for such legislation is manifest and pressing. Those who have  entrusted us with the responsibility and duty of serving and safeguarding  them in such matters would find it hard, I believe, to excuse a failure to  act upon these grave matters or any unnecessary postponement of action upon  them.  
1916-16	1916	Not only does the Interstate Commerce Commission now find it practically  impossible, with its present membership and organization, to perform its  great functions promptly and thoroughly, but it is not unlikely that it may  presently be found advisable to add to its duties still others equally  heavy and exacting. It must first be perfected as an administrative  instrument.  
1916-17	1916	The country cannot and should not consent to remain any longer exposed to  profound industrial disturbances for lack of additional means of  arbitration and conciliation which the Congress can easily and promptly  supply.  
1916-18	1916	And all will agree that there must be no doubt as to the power of the  Executive to make immediate and uninterrupted use of the railroads for the  concentration of the military forces of the nation wherever they are needed  and whenever they are needed.  
1916-19	1916	This is a program of regulation, prevention and administrative efficiency  which argues its own case in the mere statement of it. With regard to one  of its items, the increase in the efficiency of the Interstate Commerce  Commission, the House of Representatives has already acted; its action  needs only the concurrence of the Senate.  
1916-20	1916	I would hesitate to recommend, and I dare say the Congress would hesitate  to act upon the suggestion should I make it, that any man in any I  occupation should be obliged by law to continue in an employment which he  desired to leave.  
1916-21	1916	To pass a law which forbade or prevented the individual workman to leave  his work before receiving the approval of society in doing so would be to  adopt a new principle into our jurisprudence, which I take it for granted  we are not prepared to introduce.  
1916-22	1916	But the proposal that the operation of the railways of the country shall  not be stopped or interrupted by the concerted action of organized bodies  of men until a public investigation shall have been instituted, which shall  make the whole question at issue plain for the judgment of the opinion of  the nation, is not to propose any such principle.  
1916-23	1916	It is based upon the very different principle that the concerted action of  powerful bodies of men shall not be permitted to stop the industrial  processes of the nation, at any rate before the nation shall have had an  opportunity to acquaint itself with the merits of the case as between  employe and employer, time to form its opinion upon an impartial statement  of the merits, and opportunity to consider all practicable means of  conciliation or arbitration.  
1916-24	1916	I can see nothing in that proposition but the justifiable safeguarding by  society of the necessary processes of its very life. There is nothing  arbitrary or unjust in it unless it be arbitrarily and unjustly done. It  can and should be done with a full and scrupulous regard for the interests  and liberties of all concerned as well as for the permanent interests of  society itself.  
1916-25	1916	Three matters of capital importance await the action of the Senate which  have already been acted upon by the House of Representatives; the bill  which seeks to extend greater freedom of combination to those engaged in  promoting the foreign commerce of the country than is now thought by some  to be legal under the terms of the laws against monopoly; the bill amending  the present organic law of Porto Rico; and the bill proposing a more  thorough and systematic regulation of the expenditure of money in  elections, commonly called the Corrupt Practices Act.  
1916-26	1916	I need not labor my advice that these measures be enacted into law. Their  urgency lies in the manifest circumstances which render their adoption at  this time not only opportune but necessary. Even delay would seriously  jeopard the interests of the country and of the Government.  
1916-27	1916	Immediate passage of the bill to regulate the expenditure of money in  elections may seem to be less necessary than the immediate enactment of the  other measures to which I refer, because at least two years will elapse  before another election in which Federal offices are to be filled; but it  would greatly relieve the public mind if this important matter were dealt  with while the circumstances and the dangers to the public morals of the  present method of obtaining and spending campaign funds stand clear under  recent observation, and the methods of expenditure can be frankly studied  in the light of present experience; and a delay would have the further very  serious disadvantage of postponing action until another election was at  hand and some special object connected with it might be thought to be in  the mind of those who urged it. Action can be taken now with facts for  guidance and without suspicion of partisan purpose.  
1916-28	1916	I shall not argue at length the desirability of giving a freer hand in the  matter of combined and concerted effort to those who shall undertake the  essential enterprise of building up our export trade. That enterprise will  presently, will immediately assume, has indeed already assumed a magnitude  unprecedented in our experience. We have not the necessary  instrumentalities for its prosecution; it is deemed to be doubtful whether  they could be created upon an adequate scale under our present laws.  
1916-29	1916	We should clear away all legal obstacles and create a basis of undoubted  law for it which will give freedom without permitting unregulated license.  The thing must be done now, because the opportunity is here and may escape  us if we hesitate or delay.  
1916-30	1916	The argument for the proposed amendments of the organic law of Porto Rico  is brief and conclusive. The present laws governing the island and  regulating the rights and privileges of its people are not just. We have  created expectations of extended privilege which we have not satisfied.  There is uneasiness among the people of the island and even a suspicious  doubt with regard to our intentions concerning them which the adoption of  the pending measure would happily remove. We do not doubt what we wish to  do in any essential particular. We ought to do it at once.  
1916-31	1916	At the last session of the Congress a bill was passed by the Senate which  provides for the promotion of vocational and industrial education, which is  of vital importance to the whole country because it concerns a matter, too  long neglected, upon which the thorough industrial preparation of the  country for the critical years of economic development immediately ahead of  us in very large measure depends.  
1916-32	1916	May I not urge its early and favorable consideration by the House of  Representatives and its early enactment into law? It contains plans which  affect all interests and all parts of the country, and I am sure that there  is no legislation now pending before the Congress whose passage the country  awaits with more thoughtful approval or greater impatience to see a great  and admirable thing set in the way of being done.  
1916-33	1916	There are other matters already advanced to the stage of conference between  the two houses of which it is not necessary that I should speak. Some  practicable basis of agreement concerning them will no doubt be found an  action taken upon them.  
1916-34	1916	Inasmuch as this is, gentlemen, probably the last occasion I shall have to  address the Sixty-fourth Congress, I hope that you will permit me to say  with what genuine pleasure and satisfaction I have co-operated with you in  the many measures of constructive policy with which you have enriched the  legislative annals of the country. It has been a privilege to labor in such  company. I take the liberty of congratulating you upon the completion of a  record of rare serviceableness and distinction.  
1917-1	1917	GENTLEMEN OF THE CONGRESS:  
1917-2	1917	Eight months have elapsed since I last had the honor of addressing you.  They have been months crowded with events of immense and grave significance  for us. I shall not undertake to detail or even to summarize those events.  The practical particulars of the part we have played in them will be laid  before you in the reports of the executive departments. I shall discuss  only our present outlook upon these vast affairs, our present duties, and  the immediate means of accomplishing the objects we shall hold always in  view.  
1917-3	1917	I shall not go back to debate the causes of the war. The intolerable wrongs  done and planned against us by the sinister masters of Germany have long  since become too grossly obvious and odious to every true American to need  to be rehearsed. But I shall ask you to consider again and with a very  grave scrutiny our objectives and the measures by which we mean to attain  them; for the purpose of discussion here in this place is action, and our  action must move straight toward definite ends. Our object is, of course,  to win the war; and we shall not slacken or suffer ourselves to be diverted  until it is won. But it is worth while asking and answering the question,  When shall we consider the war won?  
1917-4	1917	From one point of view it is not necessary to broach this fundamental  matter. I do not doubt that the American people know what the war is about  and what sort of an outcome they will regard as a realization of their  purpose in it.  
1917-5	1917	As a nation we are united in spirit and intention. I pay little heed to  those who tell me otherwise. I hear the voices of dissent-who does not? I  bear the criticism and the clamor of the noisily thoughtless and  troublesome. I also see men here and there fling themselves in impotent  disloyalty against the calm, indomitable power of the Nation. I hear men  debate peace who understand neither its nature nor the way in which we may  attain it with uplifted eyes and unbroken spirits. But I know that none of  these speaks for the Nation. They do not touch the heart of anything. They  may safely be left to strut their uneasy hour and be forgotten.  
1917-6	1917	But from another point of view I believe that it is necessary to say  plainly what we here at the seat of action consider the war to be for and  what part we mean to play in the settlement of its searching issues. We are  the spokesmen of the American people, and they have a right to know whether  their purpose is ours. They desire peace by the overcoming of evil, by the  defeat once for all of the sinister forces that interrupt peace and render  it impossible, and they wish to know how closely our thought runs with  theirs and what action we propose. They are impatient with those who desire  peace by any sort of compromise deeply and indignantly impatient--but they  will be equally impatient with us if we do not make it plain to them what  our objectives are and what we are planning for in seeking to make conquest  of peace by arms.  
1917-7	1917	I believe that I speak for them when I say two things: First, that this  intolerable thing of which the masters of Germany have shown us the ugly  face, this menace of combined intrigue and force which we now see so  clearly as the German power, a thing without conscience or honor of  capacity for covenanted peace, must be crushed and, if it be not utterly  brought to an end, at least shut out from the friendly intercourse of the  nations; and second, that when this thing and its power are indeed defeated  and the time comes that we can discuss peace when the German people have  spokesmen whose word we can believe and when those spokesmen are ready in  the name of their people to accept the common judgment of the nations as to  what shall henceforth be the bases of law and of covenant for the life of  the world-we shall be willing and glad to pay the full price for peace, and  pay it ungrudgingly.  
1917-8	1917	We know what that price will be. It will be full, impartial justice-justice  done at every point and to every nation that the final settlement must  affect, our enemies as well as our friends.  
1917-9	1917	You catch, with me, the voices of humanity that are in the air. They grow  daily more audible, more articulate, more persuasive, and they come from  the hearts of men everywhere. They insist that the war shall not end in  vindictive action of any kind; that no nation or people shall be robbed or  punished because the irresponsible rulers of a single country have  themselves done deep and abominable wrong. It is this thought that has been  expressed in the formula, "No annexations, no contributions, no punitive  indemnities."  
1917-10	1917	Just because this crude formula expresses the instinctive judgment as to  right of plain men everywhere, it has been made diligent use of by the  masters of German intrigue to lead the people of Russia astray and the  people of every other country their agents could reach-in order that a  premature peace might be brought about before autocracy has been taught its  final and convincing lesson and the people of the world put in control of  their own destinies.  
1917-11	1917	But the fact that a wrong use has been made of a just idea is no reason why  a right use should not be made of it. It ought to be brought under the  patronage of its real friends. Let it be said again that autocracy must  first be shown the utter futility of its claim to power or leadership in  the modern world. It is impossible to apply any standard of justice so long  as such forces are unchecked and undefeated as the present masters of  Germany command. Not until that has been done can right be set up as  arbiter and peacemaker among the nations. But when that has been done-as,  God willing, it assuredly will be-we shall at last be free to do an  unprecedented thing, and this is the time to avow our purpose to do it. We  shall be free to base peace on generosity and justice, to the exclusions of  all selfish claims to advantage even on the part of the victors.  
1917-12	1917	Let there be no misunderstanding. Our present and immediate task is to win  the war and nothing shall turn us aside from it until it is  accomplished. Every power and resource we possess, whether of men, of  money, or of materials, is being devoted and will continue to be devoted to  that purpose until it is achieved. Those who desire to bring peace about  before that purpose is achieved I counsel to carry their advice elsewhere.  We will not entertain it. We shall regard the war as won only when the  German people say to us, through properly accredited representatives, that  they are ready to agree to a settlement based upon justice and reparation  of the wrongs their rulers have done. They have done a wrong to Belgium  which must be repaired. They have established a power over other lands and  peoples than their own--over the great empire of Austria-Hungary, over  hitherto free Balkan states, over Turkey and within Asia-which must be  relinquished.  
1917-13	1917	Germany's success by skill, by industry, by knowledge, by enterprise we did  not grudge or oppose, but admired, rather. She had built up for herself a  real empire of trade and influence, secured by the peace of the world. We  were content to abide by the rivalries of manufacture, science and commerce  that were involved for us in her success, and stand or fall as we had or  did not have the brains and the initiative to surpass her. But at the  moment when she had conspicuously won her triumphs of peace she threw them  away, to establish in their stead what the world will no longer permit to  be established, military and political domination by arms, by which to oust  where she could not excel the rivals she most feared and hated. The peace  we make must remedy that wrong. It must deliver the once fair lands and  happy peoples of Belgium and Northern France from the Prussian conquest and  the Prussian menace, but it must deliver also the peoples of  Austria-Hungary, the peoples of the Balkans and the peoples of Turkey,  alike in Europe and Asia, from the impudent and alien dominion of the  Prussian military and commercial autocracy.  
1917-14	1917	We owe it, however, to ourselves, to say that we do not wish in any way to  impair or to rearrange the Austro-Hungarian Empire. It is no affair of ours  what they do with their own life, either industrially or politically. We do  not purpose or desire to dictate to them in any way. We only desire to see  that their affairs are left in their own hands, in all matters, great or  small. We shall hope to secure for the peoples of the Balkan peninsula and  for the people of the Turkish Empire the right and opportunity to make  their own lives safe, their own fortunes secure against oppression or  injustice and from the dictation of foreign courts or parties.  
1917-15	1917	And our attitude and purpose with regard to Germany herself are of a like  kind. We intend no wrong against the German Empire, no interference with  her internal affairs. We should deem either the one or the other absolutely  unjustifiable, absolutely contrary to the principles we have professed to  live by and to hold most sacred throughout our life as a nation.  
1917-16	1917	The people of Germany are being told by the men whom they now permit to  deceive them and to act as their masters that they are fighting for the  very life and existence of their empire, a war of desperate self-defense  against deliberate aggression. Nothing could be more grossly or wantonly  false, and we must seek by the utmost openness and candor as to our real  aims to convince them of its falseness. We are in fact fighting for their  emancipation from the fear, along with our own-from the fear as well as  from the fact of unjust attack by neighbors or rivals or schemers after  world empire. No one is threatening the existence or the independence of  the peaceful enterprise of the German Empire.  
1917-17	1917	The worst that can happen to the detriment the German people is this, that  if they should still, after the war is over, continue to be obliged to live  under ambitious and intriguing masters interested to disturb the peace of  the world, men or classes of men whom the other peoples of the world could  not trust, it might be impossible to admit them to the partnership of  nations which must henceforth guarantee the world's peace. That partnership  must be a partnership of peoples, not a mere partnership of governments. It  might be impossible, also, in such untoward circumstances, to admit Germany  to the free economic intercourse which must inevitably spring out of the  other partnerships of a real peace. But there would be no aggression in  that; and such a situation, inevitable, because of distrust, would in the  very nature of things sooner or later cure itself, by processes which would  assuredly set in.  
1917-18	1917	The wrongs, the very deep wrongs, committed in this war will have to be  righted. That, of course. But they cannot and must not be righted by the  commission of similar wrongs against Germany and her allies. The world will  not permit the commission of similar wrongs as a means of reparation and  settlement. Statesmen must by this time have learned that the opinion of  the world is everywhere wide awake and fully comprehends the issues  involved. No representative of any self-governed nation will dare disregard  it by attempting any such covenants of selfishness and compromise as were  entered into at the Congress of Vienna. The thought of the plain people  here and everywhere throughout the world, the people who enjoy no privilege  and have very simple and unsophisticated standards of right and wrong, is  the air all governments must henceforth breathe if they would live.  
1917-19	1917	It is in the full disclosing light of that thought that all policies must  be received and executed in this midday hour of the world's life. Ger. man  rulers have been able to upset the peace of the world only because the  German people were not suffered under their tutelage to share the  comradeship of the other peoples of the world either in thought or in  purpose. They were allowed to have no opinion of their own which might be  set up as a rule of conduct for those who exercised authority over them.  But the Congress that concludes this war will feel the full strength of the  tides that run now in the hearts and consciences of free men everywhere.  Its conclusions will run with those tides.  
1917-20	1917	All those things have been true from the very beginning of this stupendous  war; and I cannot help thinking that if they had been made plain at the  very outset the sympathy and enthusiasm of the Russian people might have  been once for all enlisted on the side of the Allies, suspicion and  distrust swept away, and a real and lasting union of purpose effected. Had  they believed these things at the very moment of their revolution, and had  they been confirmed in that belief since, the sad reverses which have  recently marked the progress of their affairs towards an ordered and stable  government of free men might have been avoided. The Russian people have  been poisoned by the very same falsehoods that have kept the German people  in the dark, and the poison has been administered by the very same hand.  The only possible antidote is the truth. It cannot be uttered too plainly  or too often.  
1917-21	1917	From every point of view, therefore, it has seemed to be my duty to speak  these declarations of purpose, to add these specific interpretations to  what I took the liberty of saying to the Senate in January. Our entrance  into the war has not altered out attitude towards the settlement that must  come when it is over.  
1917-22	1917	When I said in January that the nations of the world were entitled not only  to free pathways upon the sea, but also to assured and unmolested access to  those-pathways, I was thinking, and I am thinking now, not of the smaller  and weaker nations alone which need our countenance and support, but also  of the great and powerful nations and of our present enemies as well as our  present associates in the war. I was thinking, and am thinking now, of  Austria herself, among the rest, as well as of Serbia and of Poland.  
1917-23	1917	Justice and equality of rights can be had only at a great price. We are  seeking permanent, not temporary, foundations for the peace of the world,  and must seek them candidly and fearlessly. As always, the right will prove  to be the expedient.  
1917-24	1917	What shall we do, then, to push this great war of freedom and justice to  its righteous conclusion? We must clear away with a thorough hand all  impediments to success, and we must make every adjustment of law that will  facilitate the full and free use of our whole capacity and force as a  fighting unit.  
1917-25	1917	One very embarrassing obstacle that stands hi our way is that we are at war  with Germany but not with her allies. I, therefore, very earnestly  recommend that the Congress immediately declare the United States in a  state of war with Austria-Hungary. Does it seem strange to you that this  should be the conclusion of the argument I have just addressed to you? It  is not. It is in fact the inevitable logic of what I have said.  Austria-Hungary is for the time being not her own mistress but simply the  vassal of the German Government.  
1917-26	1917	We must face the facts as they are and act upon them without sentiment in  this stern business. The Government of Austria and Hungary is not acting  upon its own initiative or in response to the wishes and feelings of its  own peoples, but as the instrument of another nation. We must meet its  force with our own and regard the Central Powers as but one. The war can be  successfully conducted in no other way.  
1917-27	1917	The same logic would lead also to a declaration of war against Turkey and  Bulgaria. They also are the tools of Germany, but they are mere tools and  do not yet stand in the direct path of our necessary action. We shall go  wherever the necessities of this war carry us, but it seems to me that we  should go only where immediate and practical considerations lead us, and  not heed any others.  
1917-28	1917	The financial and military measures which must be adopted will suggest  themselves as the war and its undertakings develop, but I will take the  liberty of proposing to you certain other acts of legislation which seem to  me to be needed for the support of the war and for the release of our whole  force and energy.  
1917-29	1917	It will be necessary to extend in certain particulars the legislation of  the last session with regard to alien enemies, and also necessary, I  believe, to create a very definite and particular control over the entrance  and departure of all persons into and from the United States.  
1917-30	1917	Legislation should be enacted defining as a criminal offense every wilful  violation of the presidential proclamation relating to alien enemies  promulgated under section 4o67 of the revised statutes and providing  appropriate punishments; and women, as well as men, should be included  under the terms of the acts placing restraints upon alien enemies.  
1917-31	1917	It is likely that as time goes on many alien enemies will be willing to be  fed and housed at the expense of the Government in the detention camps, and  it would be the purpose of the legislation I have suggested to confine  offenders among them in the penitentiaries and other similar institutions  where they could be made to work as other criminals do.  
1917-32	1917	Recent experience has convinced me that the Congress must go further in  authorizing the Government to set limits to prices. The law of supply and  demand, I am sorry to say, has been replaced by the law of unrestrained  selfishness. While we have eliminated profiteering in several branches of  industry, it still runs impudently rampant in others. The farmers for  example, complain with a great deal of justice that, while the regulation  of food prices restricts their incomes, no restraints are placed upon the  prices of most of the things they must themselves purchase; and similar  inequities obtain on all sides.  
1917-33	1917	It is imperatively necessary that the consideration of the full use of the  water power of the country, and also of the consideration of the systematic  and yet economical development of such of the natural resources of the  country as are still under the control of the Federal Government should be  immediately resumed and affirmatively and constructively dealt with at the  earliest possible moment. The pressing need of such legislation is daily  becoming more obvious.  
1917-34	1917	The legislation proposed at the last session with regard to regulated  combinations among our exporters in order to provide for our foreign trade  a more effective organization and method of co-operation ought by all means  to be completed at this session.  
1917-35	1917	And I beg that the members of the House of Representatives will permit me  to express the opinion that it will be impossible to deal in any but a very  wasteful and extravagant fashion with the enormous appropriations of the  public moneys which must continue to be made if the war is to be properly  sustained, unless the House will consent to return to its former practice  of initiating and preparing all appropriation bills through a single  committee, in order that responsibility may be centered, expenditures  standardized and made uniform, and waste and duplication as much as  possible avoided.  
1917-36	1917	Additional legislation may also become necessary before the present  Congress again adjourns in order to effect the most efficient co-ordination  and operation of the railways and other transportation systems of the  country; but to that I shall, if circumstances should demand, call the  attention of Congress upon another occasion.  
1917-37	1917	If I have overlooked anything that ought to be done for the more effective  conduct of the war, your own counsels will supply the omission. What I am  perfectly clear about is that in the present session of the Congress our  whole attention and energy should be concentrated on the vigorous, rapid  and successful prosecution of the great task of winning the war.  
1917-38	1917	We can do this with all the greater zeal and enthusiasm because we know  that for us this is a war of high principle, debased by no selfish ambition  of conquest or spoliation; because we know, and all the world knows, that  we have been forced into it to save the very institutions we five under  from corruption and destruction. The purpose of the Central Powers strikes  straight at the very heart of everything we believe in; their methods of  warfare outrage every principle of humanity and of knightly honor; their  intrigue has corrupted the very thought and spirit of many of our people;  their sinister and secret diplomacy has sought to take our very territory  away from us and disrupt the union of the states. Our safety would be at an  end, our honor forever sullied and brought into contempt, were we to permit  their triumph. They are striking at the very existence of democracy and  liberty.  
1917-39	1917	It is because it is for us a war of high, disinterested purpose, in which  all the free peoples of the world are banded together for the vindication  of right, a war for the preservation of our nation, of all that it has held  dear, of principle and of purpose, that we feel ourselves doubly  constrained to propose for its outcome only that which is righteous and of  irreproachable intention, for our foes as well as for our friends. The  cause being just and holy, the settlement must be of like motive and  equality. For this we can fight, but for nothing less noble or less worthy  of our traditions. For this cause we entered the war and for this cause  will we battle until the last gun is fired.  
1917-40	1917	I have spoken plainly because this seems to me the time when it is most  necessary to speak plainly, in order that all the world may know that, even  in the heat and ardor of the struggle and when our whole thought is of  carrying the war through to its end, we have not forgotten any ideal or  principle for which the name of America has been held in honor among the  nations and for which it has been our glory to contend in the great  generations that went before us. A supreme moment of history has come. The  eyes of the people have been opened and they see. The hand of God is laid  upon the nations. He will show them favor, I devoutly believe, only if they  rise to the clear heights of His own justice and mercy.  
1918-1	1918	GENTLEMEN OF THE CONGRESS:  
1918-2	1918	The year that has elapsed since I last stood before you to fulfil my  constitutional duty to give to the Congress from time to time information  on the state of the Union has been so crowded with great events, great  processes, and great results that I cannot hope to give you an adequate  picture of its transactions or of the far-reaching changes which have been  wrought of our nation and of the world. You have yourselves witnessed these  things, as I have. It is too soon to assess them; and we who stand in the  midst of them and are part of them are less qualified than men of another  generation will be to say what they mean, or even what they have been. But  some great outstanding facts are unmistakable and constitute, in a sense,  part of the public business with which it is our duty to deal. To state  them is to set the stage for the legislative and executive action which  must grow out of them and which we have yet to shape and determine.  
1918-3	1918	A year ago we had sent 145,918 men overseas. Since then we have sent  1,950,513, an average of 162,542 each month, the number in fact rising, in  May last, to 245,951, in June to 278,760, in July to 307,182, and  continuing to reach similar figures in August and September, in August  289,570 and in September 257,438. No such movement of troops ever took  place before, across three thousand miles of sea, followed by adequate  equipment and supplies, and carried safely through extraordinary dangers of  attack,-dangers which were alike strange and infinitely difficult to guard  against. In all this movement only seven hundred and fifty-eight men were  lost by enemy attack, six hundred and thirty of whom were upon a single  English transport which was sunk near the Orkney Islands.  
1918-4	1918	I need not tell you what lay back of this great movement of men and  material. It is not invidious to say that back of it lay a supporting  organization of the industries of the country and of all its productive  activities more complete, more thorough in method and effective in result,  more spirited and unanimous in purpose and effort than any other great  belligerent had been able to effect. We profited greatly by the experience  of the nations which had already been engaged for nearly three years in the  exigent and exacting business, their every resource and every executive  proficiency taxed to the utmost. We were their pupils. But we learned  quickly and acted with a promptness and a readiness of cooperation that  justify our great pride that we were able to serve the world with  unparalleled energy and quick accomplishment.  
1918-5	1918	But it is not the physical scale and executive efficiency of preparation,  supply, equipment and despatch that I would dwell upon, but the mettle and  quality of the officers and men we sent over and of the sailors who kept  the seas, and the spirit of the nation that stood behind them. No soldiers  or sailors ever proved themselves more quickly ready for the test of battle  or acquitted themselves with more splendid courage and achievement when put  to the test. Those of us who played some part in directing the great  processes by which the war was pushed irresistibly forward to the final  triumph may now forget all that and delight our thoughts with the story of  what our men did. Their officers understood the grim and exacting task they  had undertaken and performed it with an audacity, efficiency, and  unhesitating courage that touch the story of convoy and battle with  imperishable distinction at every turn, whether the enterprise were great  or small, from their great chiefs, Pershing and Sims, down to the youngest  lieutenant; and their men were worthy of them,-such men as hardly need to  be commanded, and go to their terrible adventure blithely and with the  quick intelligence of those who know just what it is they would accomplish.  I am proud to be the fellow-countryman of men of such stuff and valor. Those  of us who stayed at home did our duty; the war could not have been won or  the gallant men who fought it given their opportunity to win it otherwise;  but for many a long day we shall think ourselves "accurs'd we were not  there, and hold our manhoods cheap while any speaks that fought" with these  at St. Mihiel or Thierry. The memory of those days of triumphant battle  will go with these fortunate men to their graves; and each will have his  favorite memory. "Old men forget; yet all shall be forgot, but hell  remember with advantages what feats he did that day!"  
1918-6	1918	What we all thank God for with deepest gratitude is that our men went in  force into the line of battle just at the critical moment when the whole  fate of the world seemed to hang in the balance and threw their fresh  strength into the ranks of freedom in time to turn the whole tide and sweep  of the fateful struggle,-turn it once for all, so that thenceforth it was  back, back, back for their enemies, always back, never again forward! After  that it was only a scant four months before the commanders of the Central  Empires knew themselves beaten; and now their very empires are in  liquidation!  
1918-7	1918	And throughout it all how fine the spirit of the nation was: what unity of  purpose, what untiring zeal! What elevation of purpose ran through all its  splendid display of strength, its untiring accomplishment! I have said that  those of us who stayed at home to do the work of organization and supply  will always wish that we had been with the men whom we sustained by our  labor; but we can never be ashamed. It has been an inspiring thing to be  here in the midst of fine men who had turned aside from every private  interest of their own and devoted the whole of their trained capacity to  the tasks that supplied the sinews of the whole great undertaking! The  patriotism, the unselfishness, the thoroughgoing devotion and distinguished  capacity that marked their toilsome labors, day after day, month after  month, have made them fit mates and comrades of the men in the trenches and  on the sea. And not the men here in Washington only. They have but directed  the vast achievement. Throughout innumerable factories, upon innumerable  farms, in the depths of coal mines and iron mines and copper mines,  wherever the stuffs of industry were to be obtained and prepared, in the  shipyards, on the railways, at the docks, on the sea, in every labor that  was needed to sustain the battle lines, men have vied with each other to do  their part and do it well. They can look any man-at-arms in the face, and  say, We also strove to win and gave the best that was in us to make our  fleets and armies sure of their triumph!  
1918-8	1918	And what shall we say of the women,-of their instant intelligence,  quickening every task that they touched; their capacity for organization  and cooperation, which gave their action discipline and enhanced the  effectiveness of everything they attempted; their aptitude at tasks to  which they had never before set their hands; their utter self-sacrifice  alike in what they did and in what they gave? Their contribution to the  great result is beyond appraisal. They have added a new lustre to the  annals of American womanhood.  
1918-9	1918	The least tribute we can pay them is to make them the equals of men in  political rights as they have proved themselves their equals in every field  of practical work they have entered, whether for themselves or for their  country. These great days of completed achievement would be sadly marred  were we to omit that act of justice. Besides the immense practical services  they have rendered the women of the country have been the moving spirits in  the systematic economies by which our people have voluntarily assisted to  supply the suffering peoples of the world and the armies upon every front  with food and everything else that we had that might serve the common  cause. The details of such a story can never be fully written, but we carry  them at our hearts and thank God that we can say that we are the kinsmen of  such.  
1918-10	1918	And now we are sure of the great triumph for which every sacrifice was  made. It has come, come in its completeness, and with the pride and  inspiration of these days of achievement quick within us, we turn to the  tasks of peace again,-a peace secure against the violence of irresponsible  monarchs and ambitious military coteries and made ready for a new order,  for new foundations of justice and fair dealing.  
1918-11	1918	We are about to give order and organization to this peace not only for  ourselves but for the other peoples of the world as well, so far as they  will suffer us to serve them. It is international justice that we seek, not  domestic safety merely. Our thoughts have dwelt of late upon Europe, upon  Asia, upon the near and the far East, very little upon the acts of peace  and accommodation that wait to be performed at our own doors. While we are  adjusting our relations with the rest of the world is it not of capital  importance that we should clear away all grounds of misunderstanding with  our immediate neighbors and give proof of the friendship we really feel? I  hope that the members of the Senate will permit me to speak once more of  the unratified treaty of friendship and adjustment with the Republic of  Colombia. I very earnestly urge upon them an early and favorable action  upon that vital matter. I believe that they will feel, with me, that the  stage of affairs is now set for such action as will be not only just but  generous and in the spirit of the new age upon which we have so happily  entered.  
1918-12	1918	So far as our domestic affairs are concerned the problem of our return to  peace is a problem of economic and industrial readjustment. That problem is  less serious for us than it may turn out too he for the nations which have  suffered the disarrangements and the losses of war longer than we. Our  people, moreover, do not wait to be coached and led. They know their own  business, are quick and resourceful at every readjustment, definite in  purpose, and self-reliant in action. Any leading strings we might seek to  put them in would speedily become hopelessly tangled because they would pay  no attention to them and go their own way. All that we can do as their  legislative and executive servants is to mediate the process of change  here, there, and elsewhere as we may. I have heard much counsel as to the  plans that should be formed and personally conducted to a happy  consummation, but from no quarter have I seen any general scheme of  "reconstruction" emerge which I thought it likely we could force our  spirited business men and self-reliant laborers to accept with due pliancy  and obedience.  
1918-13	1918	While the war lasted we set up many agencies by which to direct the  industries of the country in the services it was necessary for them to  render, by which to make sure of an abundant supply of the materials  needed, by which to check undertakings that could for the time be dispensed  with and stimulate those that were most serviceable in war, by which to  gain for the purchasing departments of the Government a certain control  over the prices of essential articles and materials, by which to restrain  trade with alien enemies, make the most of the available shipping, and  systematize financial transactions, both public and private, so that there  would be no unnecessary conflict or confusion,-by which, in short, to put  every material energy of the country in harness to draw the common load  and make of us one team in the accomplishment of a great task. But the  moment we knew the armistice to have been signed we took the harness off.  Raw materials upon which the Government had kept its hand for fear there  should not be enough for the industries that supplied the armies have been  released and put into the general market again. Great industrial plants  whose whole output and machinery had been taken over for the uses of the  Government have been set free to return to the uses to which they were put  before the war. It has not been possible to remove so readily or so quickly  the control of foodstuffs and of shipping, because the world has still to  be fed from our granaries and the ships are still needed to send supplies  to our men overseas and to bring the men back as fast as the disturbed  conditions on the other side of the water permit; but even there restraints  are being relaxed as much as possible and more and more as the weeks go by.  
1918-14	1918	Never before have there been agencies in existence in this country which  knew so much of the field of supply, of labor, and of industry as the War  Industries Board, the War Trade Board, the Labor Department, the Food  Administration, and the Fuel Administration have known since their labors  became thoroughly systematized; and they have not been isolated agencies;  they have been directed by men who represented the permanent Departments of  the Government and so have been the centres of unified and cooperative  action. It has been the policy of the Executive, therefore, since the  armistice was assured (which is in effect a complete submission of the  enemy) to put the knowledge of these bodies at the disposal of the business  men of the country and to offer their intelligent mediation at every point  and in every matter where it was desired. It is surprising how fast the  process of return to a peace footing has moved in the three weeks since the  fighting stopped. It promises to outrun any inquiry that may be instituted  and any aid that may be offered. It will not be easy to direct it any  better than it will direct itself. The American business man is of quick  initiative.  
1918-15	1918	The ordinary and normal processes of private initiative will not, however,  provide immediate employment for all of the men of our returning armies.  Those who are of trained capacity, those who are skilled workmen, those who  have acquired familiarity with established businesses, those who are ready  and willing to go to the farms, all those whose aptitudes are known or will  be sought out by employers will find no difficulty, it is safe to say, in  finding place and employment. But there will be others who will be at a  loss where to gain a livelihood unless pains are taken to guide them and  put them in the way of work. There will be a large floating residuum of  labor which should not be left wholly to shift for itself. It seems to me  important, therefore, that the development of public works of every sort  should be promptly resumed, in order that opportunities should be created  for unskilled labor in particular, and that plans should be made for such  developments of our unused lands and our natural resources as we have  hitherto lacked stimulation to undertake.  
1918-16	1918	I particularly direct your attention to the very practical plans which the  Secretary of the Interior has developed in his annual report and before  your Committees for the reclamation of arid, swamp, and cutover lands which  might, if the States were willing and able to cooperate, redeem some three  hundred million acres of land for cultivation. There are said to be fifteen  or twenty million acres of land in the West, at present arid, for whose  reclamation water is available, if properly conserved. There are about two  hundred and thirty million acres from which the forests have been cut but  which have never yet been cleared for the plow and which lie waste and  desolate. These lie scattered all over the Union. And there are nearly  eighty million acres of land that lie under swamps or subject to periodical  overflow or too wet for anything but grazing, which it is perfectly  feasible to drain and protect and redeem. The Congress can at once direct  thousands of the returning soldiers to the reclamation of the arid lands  which it has already undertaken, if it will but enlarge the plans and  appropriations which it has entrusted to the Department of the Interior. It  is possible in dealing with our unused land to effect a great rural and  agricultural development which will afford the best sort of opportunity to  men who want to help themselves and the Secretary of the Interior has  thought the possible methods out in a way which is worthy of your most  friendly attention.  
1918-17	1918	I have spoken of the control which must yet for a while, perhaps for a long  long while, be exercised over shipping because of the priority of service  to which our forces overseas are entitled and which should also be accorded  the shipments which are to save recently liberated peoples from starvation  and many devastated regions from permanent ruin. May I not say a special  word about the needs of Belgium and northern France? No sums of money paid  by way of indemnity will serve of themselves to save them from hopeless  disadvantage for years to come. Something more must be done than merely  find the money. If they had money and raw materials in abundance to-morrow  they could not resume their place in the industry of the world  to-morrow,-the very important place they held before the flame of war swept  across them. Many of their factories are razed to the ground. Much of their  machinery is destroyed or has been taken away. Their people are scattered  and many of their best workmen are dead. Their markets will be taken by  others, if they are not in some special way assisted to rebuild their  factories and replace their lost instruments of manufacture. They should  not be left to the vicissitudes of the sharp competition for materials and  for industrial facilities which is now to set in. I hope, therefore, that  the Congress will not be unwilling, if it should become necessary, to grant  to some such agency as the War Trade Board the right to establish  priorities of export and supply for the benefit of these people whom we  have been so happy to assist in saving from the German terror and whom we  must not now thoughtlessly leave to shift for themselves in a pitiless  competitive market.  
1918-18	1918	For the steadying, and facilitation of our own domestic business  readjustments nothing is more important than the immediate determination of  the taxes that are to be levied for 1918, 1919, and 1920. As much of the  burden of taxation must be lifted from business as sound methods of  financing the Government will permit, and those who conduct the great  essential industries of the country must be told as exactly as possible  what obligations to the Government they will be expected to meet in the  years immediately ahead of them. It will be of serious consequence to the  country to delay removing all uncertainties in this matter a single day  longer than the right processes of debate justify. It is idle to talk of  successful and confident business reconstruction before those uncertainties  are resolved.  
1918-19	1918	If the war had continued it would have been necessary to raise at least  eight billion dollars by taxation payable in the year 1919; but the war has  ended and I agree with the Secretary of the Treasury that it will be safe  to reduce the amount to six billions. An immediate rapid decline in the  expenses of the Government is not to be looked for. Contracts made for war  supplies will, indeed, be rapidly cancelled and liquidated, but their  immediate liquidation will make heavy drains on the Treasury for the months  just ahead of us. The maintenance of our forces on the other side of the  sea is still necessary. A considerable proportion of those forces must  remain in Europe during the period of occupation, and those which are  brought home will be transported and demobilized at heavy expense for  months to come. The interest on our war debt must of course be paid and  provision made for the retirement of the obligations of the Government  which represent it. But these demands will of course fall much below what a  continuation of military operations would have entailed and six billions  should suffice to supply a sound foundation for the financial operations of  the year.  
1918-20	1918	I entirely concur with the Secretary of the Treasury in recommending that  the two billions needed in addition to the four billions provided by  existing law be obtained from the profits which have accrued and shall  accrue from war contracts and distinctively war business, but that these  taxes be confined to the war profits accruing in 1918, or in 1919 from  business originating in war contracts. I urge your acceptance of his  recommendation that provision be made now, not subsequently, that the taxes  to be paid in 1920 should be reduced from six to four billions. Any  arrangements less definite than these would add elements of doubt and  confusion to the critical period of industrial readjustment through which  the country must now immediately pass, and which no true friend of the  nation's essential business interests can afford to be responsible for  creating or prolonging. Clearly determined conditions, clearly and simply  charted, are indispensable to the economic revival and rapid industrial  development which may confidently be expected if we act now and sweep all  interrogation points away.  
1918-21	1918	I take it for granted that the Congress will carry out the naval programme  which was undertaken before we entered the war. The Secretary of the Navy  has submitted to your Committees for authorization that part of the  programme which covers the building plans of the next three years. These  plans have been prepared along the lines and in accordance with the policy  which the Congress established, not under the exceptional conditions of the  war, but with the intention of adhering to a definite method of development  for the navy. I earnestly recommend the uninterrupted pursuit of that  policy. It would clearly be unwise for us to attempt to adjust our  programmes to a future world policy as yet undetermined.  
1918-22	1918	The question which causes me the greatest concern is the question of the  policy to be adopted towards the railroads. I frankly turn to you for  counsel upon it. I have no confident judgment of my own. I do not see how  any thoughtful man can have who knows anything of the complexity of the  problem. It is a problem which must be studied, studied immediately, and  studied without bias or prejudice. Nothing can be gained by becoming  partisans of any particular plan of settlement.  
1918-23	1918	It was necessary that the administration of the railways should be taken  over by the Government so long as the war lasted. It would have been  impossible otherwise to establish and carry through under a single  direction the necessary priorities of shipment. It would have been  impossible otherwise to combine maximum production at the factories and  mines and farms with the maximum possible car supply to take the products  to the ports and markets; impossible to route troop shipments and freight  shipments without regard to the advantage or-disadvantage of the roads  employed; impossible to subordinate, when necessary, all questions of  convenience to the public necessity; impossible to give the necessary  financial support to the roads from the public treasury. But all these  necessities have now been served, and the question is, What is best for the  railroads and for the public in the future?  
1918-24	1918	Exceptional circumstances and exceptional methods of administration were  not needed to convince us that the railroads were not equal to the immense  tasks of transportation imposed upon them by the rapid and continuous  development of the industries of the country. We knew that already. And we  knew that they were unequal to it partly because their full cooperation was  rendered impossible by law and their competition made obligatory, so that  it has been impossible to assign to them severally the traffic which could  best be carried by their respective lines in the interest of expedition and  national economy.  
1918-25	1918	We may hope, I believe, for the formal conclusion of the war by treaty by  the time Spring has come. The twenty-one months to which the present control  of the railways is limited after formal proclamation of peace shall have  been made will run at the farthest, I take it for granted, only to the  January of 1921. The full equipment of the railways which the federal  administration had planned could not be completed within any such period.  The present law does not permit the use of the revenues of the several  roads for the execution of such plans except by formal contract with their  directors, some of whom will consent while some will not, and therefore  does not afford sufficient authority to undertake improvements upon the  scale upon which it would be necessary to undertake them. Every approach to  this difficult subject-matter of decision brings us face to face,  therefore, with this unanswered question: What is it right that we should  do with the railroads, in the interest of the public and in fairness to  their owners?  
1918-26	1918	Let me say at once that I have no answer ready. The only thing that is  perfectly clear to me is that it is not fair either to the public or to the  owners of the railroads to leave the question unanswered and that it will  presently become my duty to relinquish control of the roads, even before  the expiration of the statutory period, unless there should appear some  clear prospect in the meantime of a legislative solution. Their release  would at least produce one element of a solution, namely certainty and a  quick stimulation of private initiative.  
1918-27	1918	I believe that it will be serviceable for me to set forth as explicitly as  possible the alternative courses that lie open to our choice. We can simply  release the roads and go back to the old conditions of private management,  unrestricted competition, and multiform regulation by both state and  federal authorities; or we can go to the opposite extreme and establish  complete government control, accompanied, if necessary, by actual  government ownership; or we can adopt an intermediate course of modified  private control, under a more unified and affirmative public regulation and  under such alterations of the law as will permit wasteful competition to be  avoided and a considerable degree of unification of administration to be  effected, as, for example, by regional corporations under which the  railways of definable areas would be in effect combined in single systems.  
1918-28	1918	The one conclusion that I am ready to state with confidence is that it  would be a disservice alike to the country and to the owners of the  railroads to return to the old conditions unmodified. Those are conditions  of restraint without development. There is nothing affirmative or helpful  about them. What the country chiefly needs is that all its means of  transportation should be developed, its railways, its waterways, its  highways, and its countryside roads. Some new element of policy, therefore,  is absolutely necessary--necessary for the service of the public, necessary  for the release of credit to those who are administering the railways,  necessary for the protection of their security holders. The old policy may  be changed much or little, but surely it cannot wisely be left as it was. I  hope that the Con will have a complete and impartial study of the whole  problem instituted at once and prosecuted as rapidly as possible. I stand  ready and anxious to release the roads from the present control and I must  do so at a very early date if by waiting until the statutory limit of time  is reached I shall be merely prolonging the period of doubt and uncertainty  which is hurtful to every interest concerned.  
1918-29	1918	I welcome this occasion to announce to the Congress my purpose to join in  Paris the representatives of the governments with which we have been  associated in the war against the Central Empires for the purpose of  discussing with them the main features of the treaty of peace. I realize  the great inconveniences that will attend my leaving the country,  particularly at this time, but the conclusion that it was my paramount duty  to go has been forced upon me by considerations which I hope will seem as  conclusive to you as they have seemed to me.  
1918-30	1918	The Allied governments have accepted the bases of peace which I outlined to  the Congress on the eighth of January last, as the Central Empires also  have, and very reasonably desire my personal counsel in their  interpretation and application, and it is highly desirable that I should  give it in order that the sincere desire of our Government to contribute  without selfish purpose of any kind to settlements that will be of common  benefit to all the nations concerned may be made fully manifest. The peace  settlements which are now to be agreed upon are of transcendent importance  both to us and to the rest of the world, and I know of no business or  interest which should take precedence of them. The gallant men of our armed  forces on land and sea have consciously fought for the ideals which they  knew to be the ideals of their country; I have sought to express those  ideals; they have accepted my statements of them as the substance of their  own thought and purpose, as the associated governments have accepted them;  I owe it to them to see to it, so far as in me lies, that no false or  mistaken interpretation is put upon them, and no possible effort omitted to  realize them. It is now my duty to play my full part in making good what  they offered their life's blood to obtain. I can think of no call to  service which could transcend this.  
1918-31	1918	I shall be in close touch with you and with affairs on this side the water,  and you will know all that I do. At my request, the French and English  governments have absolutely removed the censorship of cable news which  until within a fortnight they had maintained and there is now no censorship  whatever exercised at this end except upon attempted trade communications  with enemy countries. It has been necessary to keep an open wire constantly  available between Paris and the Department of State and another between  France and the Department of War. In order that this might be done with the  least possible interference with the other uses of the cables, I have  temporarily taken over the control of both cables in order that they may be  used as a single system. I did so at the advice of the most experienced  cable officials, and I hope that the results will justify my hope that the  news of the next few months may pass with the utmost freedom and with the  least possible delay from each side of the sea to the other.  
1918-32	1918	May I not hope, Gentlemen of the Congress, that in the delicate tasks I  shall have to perform on the other side of the sea, in my efforts truly and  faithfully to interpret the principles and purposes of the country we love,  I may have the encouragement and the added strength of your united support?  I realize the magnitude and difficulty of the duty I am undertaking; I am  poignantly aware of its grave responsibilities. I am the servant of the  nation. I can have no private thought or purpose of my own in performing  such an errand. I go to give the best that is in me to the common  settlements which I must now assist in arriving at in conference with the  other working heads of the associated governments. I shall count upon your  friendly countenance and encouragement. I shall not be inaccessible. The  cables and the wireless will render me available for any counsel or service  you may desire of me, and I shall be happy in the thought that I am  constantly in touch with the weighty matters of domestic policy with which  we shall have to deal. I shall make my absence as brief as possible and  shall hope to return with the happy assurance that it has been possible to  translate into action the great ideals for which America has striven.  
1919-1	1919	TO THE SENATE AND HOUSE OF REPRESENTATIVES:  
1919-2	1919	I sincerely regret that I cannot be present at the opening of this session  of the Congress. I am thus prevented from presenting in as direct a way as  I could wish the many questions that are pressing for solution at this  time. Happily, I have had the advantage of the advice of the heads of the  several executive departments who have kept in close touch with affairs in  their detail and whose thoughtful recommendations I earnestly second.  
1919-3	1919	In the matter of the railroads and the readjustment of their affairs  growing out of Federal control, I shall take the liberty at a later date of  addressing you.  
1919-4	1919	I hope that Congress will bring to a conclusion at this session legislation  looking to the establishment of a budget system. That there should be one  single authority responsible for the making of all appropriations and that  appropriations should be made not independently of each other, but with  reference to one single comprehensive plan of expenditure properly related  to the nation's income, there can be no doubt I believe the burden of  preparing the budget must, in the nature of the case, if the work is to be  properly done and responsibility concentrated instead of divided, rest upon  the executive. The budget so prepared should be submitted to and approved  or amended by a single committee of each House of Congress and no single  appropriation should be made by the Congress, except such as may have been  included in the budget prepared by the executive or added by the particular  committee of Congress charged with the budget legislation.  
1919-5	1919	Another and not less important aspect of the problem is the ascertainment  of the economy and efficiency with which the moneys appropriated are  expended. Under existing law the only audit is for the purpose of  ascertaining whether expenditures have been lawfully made within the  appropriations. No one is authorized or equipped to ascertain whether the  money has been spent wisely, economically and effectively. The auditors  should be highly trained officials with permanent tenure in the Treasury  Department, free of obligations to or motives of consideration for this or  any subsequent administration, and authorized and empowered to examine into  and make report upon the methods employed and the results obtained by the  executive departments of the Government. Their reports should be made to  the Congress and to the Secretary of the Treasury.  
1919-6	1919	I trust that the Congress will give its immediate consideration to the  problem of future taxation. Simplification of the income and profits taxes  has become an immediate necessity. These taxes performed indispensable  service during the war. They must, however, be simplified, not only to save  the taxpayer inconvenience and expense, but in order that his liability may  be made certain and definite.  
1919-7	1919	With reference to the details of the Revenue Law, the Secretary of the  Treasury and the Commissioner of Internal Revenue will lay before you for  your consideration certain amendments necessary or desirable in connection  with the administration of the law-recommendations which have my approval  and support. It is of the utmost importance that in dealing with this  matter the present law should not be disturbed so far as regards taxes for  the calendar year 1920 payable in the calendar year 1921. The Congress  might well consider whether the higher rates of income and profits taxes  can in peace times be effectively productive of revenue, and whether they  may not, on the contrary, be destructive of business activity and  productive of waste and inefficiency. There is a point at which in peace  times high rates of income and profits taxes discourage energy, remove the  incentive to new enterprises, encourage extravagant expenditures and  produce industrial stagnation with consequent unemployment and other  attendant evils.  
1919-8	1919	The problem is not an easy one. A fundamental change has taken place with  reference to the position of America in the world's affairs. The prejudice  and passions engendered by decades of controversy between two schools of  political and economic thought,-the one believers in protection of American  industries, the other believers in tariff for revenue only,-must be  subordinated to the single consideration of the public interest in the light  of utterly changed conditions. Before the war America was heavily the  debtor of the rest of the world and the interest payments she had to make  to foreign countries on American securities held abroad, the expenditures  of American travelers abroad and the ocean freight charges she had to pay  to others, about balanced the value of her pre-war favorable balance of  trade. During the war America's exports have been greatly stimulated, and  increased prices have increased their value. On the other hand, she has  purchased a large proportion of the American securities previously held  abroad, has loaned some $9,000,000,000 to foreign governments, and has  built her own ships. Our favorable balance of trade has thus been greatly  increased and Europe has been deprived of the means of meeting it  heretofore existing. Europe can have only three ways of meeting the  favorable balance of trade in peace times: by imports into this country of  gold or of goods, or by establishing new credits. Europe is in no position  at the present time to ship gold to us nor could we contemplate large  further imports of gold into this country without concern. The time has  nearly passed for international governmental loans and it will take time to  develop in this country a market for foreign securities. Anything,  therefore, which would tend to prevent foreign countries from settling for  our exports by shipments of goods into this country could only have the  effect of preventing them from paying for our exports and therefore of  preventing the exports from being made. The productivity of the country,  greatly stimulated by the war, must find an outlet by exports to foreign  countries, and any measures taken to prevent imports will inevitably  curtail exports, force curtailment of production, load the banking  machinery of the country with credits to carry unsold products and produce  industrial stagnation and unemployment. If we want to sell, we must be  prepared to buy. Whatever, therefore, may have been our views during the  period of growth of American business concerning tariff legislation, we  must now adjust our own economic life to a changed condition growing out of  the fact that American business is full grown and that America is the  greatest capitalist in the world.  
1919-9	1919	No policy of isolation will satisfy the growing needs and opportunities of  America. The provincial standards and policies of the past, which have held  American business as if in a strait-jacket, must yield and give way to the  needs and exigencies of the new day in which we live, a day full of hope  and promise for American business, if we will but take advantage of the  opportunities that are ours for the asking. The recent war has ended our  isolation and thrown upon us a great duty and responsibility. The United  States must share the expanding world market. The United States desires for  itself only equal opportunity with the other nations of the world, and that  through the process of friendly cooperation and fair competition the  legitimate interests of the nations concerned may be successfully and  equitably adjusted.  
1919-10	1919	There are other matters of importance upon which I urged action at the last  session of Congress which are still pressing for solution. I am sure it is  not necessary for me again to remind you that there is one immediate and  very practicable question resulting from the war which we should meet in  the most liberal spirit. It is a matter of recognition and relief to our  soldiers. I can do no better than to quote from my last message urging this  very action:  
1919-11	1919	"We must see to it that our returning soldiers are assisted in every  practicable way to find the places for which they are fitted in the daily  work of the country. This can be done by developing and maintaining upon an  adequate scale the admirable organization created by the Department of  Labor for placing men seeking work; and it can also be done, in at least  one very great field, by creating new opportunities for individual  enterprise. The Secretary of the Interior has pointed out the way by which  returning soldiers may be helped to find and take up land in the hitherto  undeveloped regions of the country which the Federal Government has already  prepared, or can readily prepare, for cultivation and also on many of the  cutover or neglected areas which lie within the limits of the older states;  and I once more take the liberty of recommending very urgently that his  plans shall receive the immediate and substantial support of the  Congress."  
1919-12	1919	In the matter of tariff legislation, I beg to call your attention to the  statements contained in my last message urging legislation with reference  to the establishment of the chemical and dyestuffs industry in America:  
1919-13	1919	"Among the industries to which special consideration should be given is  that of the manufacture of dyestuffs and related chemicals. Our complete  dependence upon German supplies before the war made the interruption of  trade a cause of exceptional economic disturbance. The close relation  between the manufacture of dyestuffs, on the one hand, and of explosive and  poisonous gases, on the other, moreover, has given the industry an  exceptional significance and value. Although the United States will gladly  and unhesitatingly join in the programme of international disarmament, it  will, nevertheless, be a policy of obvious prudence to make certain of the  successful maintenance of many strong and well-equipped chemical plants.  The German chemical industry, with which we will be brought into  competition, was and may well be again, a thoroughly knit monopoly capable  of exercising a competition of a peculiarly insidious and dangerous kind."  
1919-14	1919	During the war the farmer performed a vital and willing service to the  nation. By materially increasing the production of his land, he supplied  America and the Allies with the increased amounts of food necessary to keep  their immense armies in the field. He indispensably helped to win the war.  But there is now scarcely less need of increasing the production in food  -and the necessaries of life. I ask the Congress to consider means of  encouraging effort along these lines. The importance of doing everything  possible to promote production along economical lines, to improve  marketing, and to make rural life more attractive and healthful, is  obvious. I would urge approval of the plans already proposed to the  Congress by the Secretary of Agriculture, to secure the essential facts  required for the proper study of this question, through the proposed  enlarged programmes for farm management studies and crop estimates. I would  urge, also, the continuance of Federal participation in the building of  good roads, under the terms of existing law and under the direction of  present agencies; the need of further action on the part of the States and  the Federal Government to preserve and develop our forest resources,  especially through the practice of better forestry methods on private  holdings and the extension of the publicly owned forests; better support  for country schools and the more definite direction of their courses of  study along lines related to rural problems; and fuller provision for  sanitation in rural districts and the building up of needed hospital and  medical facilities in these localities. Perhaps the way might be cleared  for many of these desirable reforms by a fresh, comprehensive survey made  of rural conditions by a conference composed of representatives of the  farmers and of the agricultural agencies responsible for leadership.  
1919-15	1919	I would call your attention to the widespread condition of political  restlessness in our body politic. The causes of this unrest, while various  and complicated, are superficial rather than deep-seated. Broadly, they  arise from or are connected with the failure on the part of our Government  to arrive speedily at a just and permanent peace permitting return to  normal conditions, from the transfusion of radical theories from seething  European centers pending such delay, from heartless profiteering resulting  in the increase of the cost of living, and lastly from the machinations of  passionate and malevolent agitators. With the return to normal conditions,  this unrest will rapidly disappear. In the meantime, it does much evil. It  seems to me that in dealing with this situation Congress should not be  impatient or drastic but should seek rather to remove the causes. It should  endeavor to bring our country back speedily to a peace basis, with  ameliorated living conditions under the minimum of restrictions upon  personal liberty that is consistent with our reconstruction problems. And  it should arm the Federal Government with power to deal in its criminal  courts with those persons who by violent methods would abrogate our  time-tested institutions. With the free expression of opinion and with the  advocacy of orderly political change, however fundamental, there must be no  interference, but towards passion and malevolence tending to incite crime  and insurrection under guise of political evolution there should be no  leniency. Legislation to this end has been recommended by the Attorney  General and should be enacted. In this direct connection, I would call your  attention to my recommendations on August 8th, pointing out legislative  measures which would be effective in controlling and bringing down the  present cost of living, which contributes so largely to this unrest. On  only one of these recommendations has the Congress acted. If the  Government's campaign is to be effective, it is necessary that the other  steps suggested should be acted on at once.  
1919-16	1919	I renew and strongly urge the necessity of the extension of the present  Food Control Act as to the period of time in which it shall remain in  operation. The Attorney General has submitted a bill providing for an  extension of this Act for a period of six months. As it now stands, it is  limited in operation to the period of the war and becomes inoperative upon  the formal proclamation of peace. It is imperative that it should be  extended at once. The Department of justice has built up extensive  machinery for the purpose of enforcing its provisions; all of which must be  abandoned upon the conclusion of peace unless the provisions of this Act  are extended.  
1919-17	1919	During this period the Congress will have an opportunity to make similar  permanent provisions and regulations with regard to all goods destined for  interstate commerce and to exclude them from interstate shipment, if the  requirements of the law are not compiled with. Some such regulation is  imperatively necessary. The abuses that have grown up in the manipulation  of prices by the withholding of foodstuffs and other necessaries of life  cannot otherwise be effectively prevented. There can be no doubt of either  the necessity of the legitimacy of such measures.  
1919-18	1919	As I pointed out in my last message, publicity can accomplish a great deal  in this campaign. The aims of the Government must be clearly brought to the  attention of the consuming public, civic organizations and state officials,  who are in a position to lend their assistance to our efforts. You have  made available funds with which to carry on this campaign, but there is no  provision in the law authorizing their expenditure for the purpose of  making the public fully informed about the efforts of the Government.  Specific recommendation has been made by the Attorney General in this  regard. I would strongly urge upon you its immediate adoption, as it  constitutes one of the preliminary steps to this campaign.  
1919-19	1919	I also renew my recommendation that the Congress pass a law regulating cold  storage as it is regulated, for example, by the laws of the State of New  Jersey, which limit the time during which goods may be kept in storage,  prescribe the method of disposing of them if kept beyond the permitted  period, and require that goods released from storage shall in all cases  bear the date of their receipt. It would materially add to the  serviceability of the law, for the purpose we now have in view, if it were  also prescribed that all goods released from storage for interstate  shipment should have plainly marked upon each package the selling or market  price at which they went into storage. By this means the purchaser would  always be able to learn what profits stood between him and the producer or  the wholesale dealer.  
1919-20	1919	I would also renew my recommendation that all goods destined for interstate  commerce should in every case, where their form or package makes it  possible, be plainly marked with the price at which they left the hands of  the producer.  
1919-21	1919	We should formulate a law requiring a Federal license of all corporations  engaged in interstate commerce and embodying in the license or in the  conditions under which it is to be issued, specific regulations designed to  secure competitive selling and prevent unconscionable profits in the method  of marketing. Such a law would afford a welcome opportunity to effect other  much needed reforms in the business of interstate shipment and in the  methods of corporations which are engaged in it; but for the moment I  confine my recommendations to the object immediately in hand, which is to  lower the cost of living.  
1919-22	1919	No one who has observed the march of events in the last year can fail to  note the absolute need of a definite programme to bring about an  improvement in the conditions of labor. There can be no settled conditions  leading to increased production and a reduction in the cost of living if  labor and capital are to be antagonists instead of partners. Sound thinking  and an honest desire to serve the interests of the whole nation, as  distinguished from the interests of a class, must be applied to the  solution of this great and pressing problem. The failure of other nations  to consider this matter in a vigorous way has produced bitterness and  jealousies and antagonisms, the food of radicalism. The only way to keep  men from agitating against grievances is to remove the grievances. An  unwillingness even to discuss these matters produces only dissatisfaction  and gives comfort to the extreme elements in our country which endeavor to  stir up disturbances in order to provoke governments to embark upon a  course of retaliation and repression. The seed of revolution is repression.  The remedy for these things must not be negative in character. It must be  constructive. It must comprehend the general interest. The real antidote  for the unrest which manifests itself is not suppression, but a deep  consideration of the wrongs that beset our national life and the  application of a remedy.  
1919-23	1919	Congress has already shown its willingness to deal with these industrial  wrongs by establishing the eight-hour day as the standard in every field of  labor. It has sought to find a way to prevent child labor. It has served  the whole country by leading the way in developing the means of preserving  and safeguarding lives and health in dangerous industries. It must now help  in the difficult task of finding a method that will bring about a genuine  democratization of industry, based upon the full recognition of the right  of those who work, in whatever rank, to participate in some organic way in  every decision which directly affects their welfare. It is with this  purpose in mind that I called a conference to meet in Washington on  December 1st, to consider these problems in all their broad aspects, with  the idea of bringing about a better understanding between these two  interests.  
1919-24	1919	The great unrest throughout the world, out of which has emerged a demand  for an immediate consideration of the difficulties between capital and  labor, bids us put our own house in order. Frankly, there can be no  permanent and lasting settlements between capital and labor which do not  recognize the fundamental concepts for which labor has been struggling  through the years. The whole world gave its recognition and endorsement to  these fundamental purposes in the League of Notions. The statesmen gathered  at Versailles recognized the fact that world stability could not be had by  reverting to industrial standards and conditions against which the average  workman of the world had revolted. It is, therefore, the task of the states  men of this new day of change and readjustment to recognize world  conditions and to seek to bring about, through legislation, conditions that  will mean the ending of age-long antagonisms between capital and labor and  that will hopefully lead to the building up of a comradeship which will  result not only in greater contentment among the mass of workmen but also  bring about a greater production and a greater prosperity to business  itself.  
1919-25	1919	To analyze the particulars in the demands of labor is to admit the justice  of their complaint in many matters that lie at their basis. The workman  demands an adequate wage, sufficient to permit him to live in comfort,  unhampered by the fear of poverty and want in his old age. He demands the  right to live and the right to work amidst sanitary surroundings, both in  home and in workshop, surroundings that develop and do not retard his own  health and wellbeing; and the right to provide for his children's wants in  the matter of health and education. In other words, it is his desire to  make the conditions of his life and the lives of those dear to him  tolerable and easy to bear.  
1919-26	1919	The establishment of the principles regarding labor laid down ill the  covenant of the League of Nations offers us the way to industrial peace and  conciliation. No other road lies open to us. Not to pursue this one is  longer to invite enmities, bitterness, and antagonisms which in the end  only lead to industrial and social disaster. The unwilling workman is not a  profitable servant. An employee whose industrial life is hedged about by  hard and unjust conditions, which he did not create and over which he has  no control, lacks that fine spirit of enthusiasm and volunteer effort which  are the necessary ingredients of a great producing entity. Let us be frank  about this solemn matter. The evidences of world-wide unrest which manifest  themselves in violence throughout the world bid us pause and consider the  means to be found to stop the spread of this contagious thing before it  saps the very vitality of the nation itself. Do we gain strength by  withholding the remedy? Or is it not the business of statesmen to treat  these manifestations of unrest which meet us on every hand as evidences of  an economic disorder and to apply constructive remedies wherever necessary,  being sure that in the application of the remedy we touch not the vital  tissues of our industrial and economic life? There can be no recession of  the tide of unrest until constructive instrumentalities are set up to stem  that tide.  
1919-27	1919	Governments must recognize the right of men collectively to bargain for  humane objects that have at their base the mutual protection and welfare of  those engaged in all industries. Labor must not be longer treated as a  commodity. It must be regarded as the activity of human beings, possessed  of deep yearnings and desires. The business man gives his best thought to  the repair and replenishment of his machinery, so that its usefulness will  not be impaired and its power to produce may always be at its height and  kept in full vigor and motion. No less regard ought to be paid to the human  machine, which after all propels the machinery of the world and is the  great dynamic force that lies back of all industry and progress. Return to  the old standards of wage and industry in employment are unthinkable. The  terrible tragedy of war which has just ended and which has brought the  world to the verge of chaos and disaster would be in vain if there should  ensue a return to the conditions of the past. Europe itself, whence has  come the unrest which now holds the world at bay, is an example of  standpatism in these vital human matters which America might well accept as  an example, not to be followed but studiously to be avoided. Europe made  labor the differential, and the price of it all is enmity and antagonism  and prostrated industry, The right of labor to live in peace and comfort  must be recognized by governments and America should be the first to lay  the foundation stones upon which industrial peace shall be built.  
1919-28	1919	Labor not only is entitled to an adequate wage, but capital should receive  a reasonable return upon its investment and is entitled to protection at  the hands of the Government in every emergency. No Government worthy of the  name can "play" these elements against each other, for there is a mutuality  of interest between them which the Government must seek to express and to  safeguard at all cost.  
1919-29	1919	The right of individuals to strike is inviolate and ought not to be  interfered with by any process of Government, but there is a predominant  right and that is the right of the Government to protect all of its people  and to assert its power and majesty against the challenge of any class. The  Government, when it asserts that right, seeks not to antagonize a class but  simply to defend the right of the whole people as against the irreparable  harm and injury that might be done by the attempt by any class to usurp a  power that only Government itself has a right to exercise as a protection  to all.  
1919-30	1919	In the matter of international disputes which have led to war, statesmen  have sought to set up as a remedy arbitration for war. Does this not point  the way for the settlement of industrial disputes, by the establishment of  a tribunal, fair and just alike to all, which will settle industrial  disputes which in the past have led to war and disaster? America,  witnessing the evil consequences which have followed out of such disputes  between these contending forces, must not admit itself impotent to deal  with these matters by means of peaceful processes. Surely, there must be  some method of bringing together in a council of peace and amity these two  great interests, out of which will come a happier day of peace and  cooperation, a day that will make men more hopeful and enthusiastic in  their various tasks, that will make for more comfort and happiness in  living and a more tolerable condition among all classes of men. Certainly  human intelligence can devise some acceptable tribunal for adjusting the  differences between capital and labor.  
1919-31	1919	This is the hour of test and trial for America. By her prowess and  strength, and the indomitable courage of her soldiers, she demonstrated her  power to vindicate on foreign battlefields her conceptions of liberty and  justice. Let not her influence as a mediator between capital and labor be  weakened and her own failure to settle matters of purely domestic concern  be proclaimed to the world. There are those in this country who threaten  direct action to force their will, upon a majority. Russia today, with its  blood and terror, is a painful object lesson of the power of minorities. It  makes little difference what minority it is; whether capital or labor, or  any other class; no sort of privilege will ever be permitted to dominate  this country. We are a partnership or nothing that is worth while. We are a  democracy, where the majority are the masters, or all the hopes and  purposes of the men who founded this government have been defeated and  forgotten. In America there is but one way by which great reforms can be  accomplished and the relief sought by classes obtained, and that is through  the orderly processes of representative government. Those who would propose  any other method of reform are enemies of this country. America will not be  daunted by threats nor lose her composure or calmness in these distressing  times. We can afford, in the midst of this day of passion and unrest, to be  self-contained and sure. The instrument of all reform in America is the  ballot. The road to economic and social reform in America is the straight  road of justice to all classes and conditions of men. Men have but to  follow this road to realize the full fruition of their objects and  purposes. Let those beware who would take the shorter road of disorder and  revolution. The right road is the road of justice and orderly process.  
1920-1	1920	GENTLEMEN OF THE CONGRESS:  
1920-2	1920	When I addressed myself to performing the duty laid upon the President by  the Constitution to present to you an annual report on the state of the  Union, I found my thought dominated by an immortal sentence of Abraham  Lincoln's--"Let us have faith that right makes might, and in that faith let  us dare to do our duty as we understand it"--a sentence immortal because it  embodies in a form of utter simplicity and purity the essential faith of  the nation, the faith in which it was conceived, and the faith in which it  has grown to glory and power. With that faith and the birth of a nation  founded upon it came the hope into the world that a new order would prevail  throughout the affairs of mankind, an order in which reason and right would  take precedence over covetousness and force; and I believe that I express  the wish and purpose of every thoughtful American when I say that this  sentence marks for us in the plainest manner the part we should play alike  in the arrangement of our domestic affairs and in our exercise of influence  upon the affairs of the world.  
1920-3	1920	By this faith, and by this faith alone, can the world be lifted out of its  present confusion and despair. It was this faith which prevailed over the  wicked force of Germany. You will remember that the beginning of the end of  the war came when the German people found themselves face to face with the  conscience of the world and realized that right was everywhere arrayed  against the wrong that their government was attempting to perpetrate. I  think, therefore, that it is true to say that this was the faith which won  the war. Certainly this is the faith with which our gallant men went into  the field and out upon the seas to make sure of victory.  
1920-4	1920	This is the mission upon which Democracy came into the world. Democracy is  an assertion of the right of the individual to live and to be treated  justly as against any attempt on the part of any combination of individuals  to make laws which will overburden him or which will destroy his equality  among his fellows in the matter of right or privilege; and I think we all  realize that the day has come when Democracy is being put upon its final  test. The Old World is just now suffering from a wanton rejection of the  principle of democracy and a substitution of the principle of autocracy as  asserted in the name, but without the authority and sanction, of the  multitude. This is the time of all others when Democracy should prove its  purity and its spiritual power to prevail. It is surely the manifest  destiny of the United States to lead in the attempt to make this spirit  prevail.  
1920-5	1920	There are two ways in which the United States can assist to accomplish this  great object. First, by offering the example within her own borders of the  will and power of Democracy to make and enforce laws which are  unquestionably just and which are equal in their administration-laws which  secure its full right to Labor and yet at the same time safeguard the  integrity of property, and particularly of that property which is devoted  to the development of industry and the increase of the necessary wealth of  the world. Second, by standing for right and justice as toward individual  nations. The law of Democracy is for the protection of the weak, and the  influence of every democracy in the world should be for the protection of  the weak nation, the nation which is struggling toward its right and toward  its proper recognition and privilege in the family of nations.  
1920-6	1920	The United States cannot refuse this role of champion without putting the  stigma of rejection upon the great and devoted men who brought its  government into existence and established it in the face of almost  universal opposition and intrigue, even in the face of wanton force, as,  for example, against the Orders in Council of Great Britain and the  arbitrary Napoleonic decrees which involved us in what we know as the War  of 1812.  
1920-7	1920	I urge you to consider that the display of an immediate disposition on the  part of the Congress to remedy any injustices or evils that may have shown  themselves in our own national life will afford the most effectual offset  to the forces of chaos and tyranny which are playing so disastrous a part  in the fortunes of the free peoples of more than one part of the world. The  United States is of necessity the sample democracy of the world, and the  triumph of Democracy depends upon its success.  
1920-8	1920	Recovery from the disturbing and sometimes disastrous effects of the late  war has been exceedingly slow on the other side of the water, and has given  promise, I venture-to say, of early completion only in our own fortunate  country; but even with us the recovery halts and is impeded at times, and  there are immediately serviceable acts of legislation which it seems to me  we ought to attempt, to assist that recovery and prove the indestructible  recuperative force of a great government of the people. One of these is to  prove that a great democracy can keep house as successfully and in as  business-like a fashion as any other government. It seems to me that the  first step toward providing this is to supply ourselves with a systematic  method of handling our estimates and expenditures and bringing them to the  point where they will not be an unnecessary strain upon our income or  necessitate unreasonable taxation; in other words, a workable budget  system. And I respectfully suggest that two elements are essential to such  a system-namely, not only that the proposal of appropriations should be in  the hands of a single body, such as a single appropriations committee in  each house of the Congress, but also that this body should be brought into  such cooperation with the Departments of the Government and with the  Treasury of the United States as would enable it to act upon a complete  conspectus of the needs of the Government and the resources from which it  must draw its income.  
1920-9	1920	I reluctantly vetoed the budget bill passed by the last session of the  Congress because of a constitutional objection. The House of  Representatives subsequently modified the bill in order to meet this  objection. In the revised form, I believe that the bill, coupled with  action already taken by the Congress to revise its rules and procedure,  furnishes the foundation for an effective national budget system. I  earnestly hope, therefore, that one of the first steps to be taken by the  present session of the Congress will be to pass the budget bill.  
1920-10	1920	The nation's finances have shown marked improvement during the last year.  The total ordinary receipts of $6,694,000,000 for the fiscal year 1920  exceeded those for 1919 by $1,542,000,000, while the total net ordinary  expenditures decreased from $18,514,000,000 to $6,403,000,000. The gross  public debt, which reached its highest point on August 31, 1919, when it  was $26,596,000,000, had dropped on November 30, 1920, to $24,175,000,000.  
1920-11	1920	There has also been a marked decrease in holdings of government war  securities by the banking institutions of the country, as well as in the  amount of bills held by the Federal Reserve Banks secured by government war  obligations. This fortunate result has relieved the banks and left them  freer to finance the needs of Agriculture, Industry, and Commerce. It has  been due in large part to the reduction of the public debt, especially of  the floating debt, but more particularly to the improved distribution of  government securities among permanent investors. The cessation of the  Government's borrowings, except through short-term certificates of  indebtedness, has been a matter of great consequence to the people of the  country at large, as well as to the holders of Liberty Bonds and Victory  Notes, and has had an important bearing on the matter of effective credit  control.  
1920-12	1920	The year has been characterized by the progressive withdrawal of the  Treasury from the domestic credit market and from a position of dominant  influence in that market. The future course will necessarily depend upon  the extent to which economies are practiced and upon the burdens placed  upon the Treasury, as well as upon industrial developments and the  maintenance of tax receipts at a sufficiently high level. The fundamental  fact which at present dominates the Government's financial situation is  that seven and a half billions of its war indebtedness mature within the  next two and a half years. Of this amount, two and a half billions are  floating debt and five billions, Victory Notes and War. Savings  Certificates. The fiscal program of the Government must be determined with  reference to these maturities. Sound policy demands that Government  expenditures be reduced to the lowest amount which will permit the various  services to operate efficiently and that Government receipts from taxes and  salvage be maintained sufficiently high to provide for current  requirements, including interest and sinking fund charges on the public  debt, and at the same time retire the floating debt and part of the Victory  Loan before maturity.  
1920-13	1920	With rigid economy, vigorous salvage operations, and adequate revenues from  taxation, a surplus of current receipts over current expenditures can be  realized and should be applied to the floating debt. All branches of the  Government should cooperate to see that this program is realized. I cannot  overemphasize the necessity of economy in Government appropriations and  expenditures and the avoidance by the Congress of practices which take  money from the Treasury by indefinite or revolving fund appropriations. The  estimates for the present year show that over a billion dollars of  expenditures were authorized by the last Congress in addition to the  amounts shown in the usual compiled statements of appropriations. This  strikingly illustrates the importance of making direct and specific  appropriations. The relation between the current receipts and current  expenditures of the Government during the present fiscal year, as well as  during the last half of the last fiscal year, has been disturbed by the  extraordinary burdens thrown upon the Treasury by the Transportation Act,  in connection with the return of the railroads to private control. Over  $600,000,000 has already been paid to the railroads under this  act-$350,000,000 during the present fiscal year; and it is estimated that  further payments aggregating possibly $650,000,000 must still be made to  the railroads during the current year. It is obvious that these large  payments have already seriously limited the Government's progress in  retiring the floating debt.  
1920-14	1920	Closely connected with this, it seems to me, is the necessity for an  immediate consideration of the revision of our tax laws. Simplification of  the income and profits taxes has become an immediate necessity. These taxes  performed an indispensable service during the war. The need for their  simplification, however, is very great, in order to save the taxpayer  inconvenience and expense and in order to make his liability more certain  and definite. Other and more detailed recommendations with regard to taxes  will no doubt be laid before you by the Secretary of the Treasury and the  Commissioner of Internal Revenue.  
1920-15	1920	It is my privilege to draw to the attention of Congress for very  sympathetic consideration the problem of providing adequate facilities for  the care and treatment of former members of the military and naval forces  who are sick and disabled as the result of their participation in the war.  These heroic men can never be paid in money for the service they  patriotically rendered the nation. Their reward will lie rather in  realization of the fact that they vindicated the rights of their country  and aided in safeguarding civilization. The nation's gratitude must be  effectively revealed to them by the most ample provision for their medical  care and treatment as well as for their vocational training and placement.  The time has come when a more complete program can be formulated and more  satisfactorily administered for their treatment and training, and I  earnestly urge that the Congress give the matter its early consideration.  The Secretary of the Treasury and the Board for Vocational Education will  outline in their annual reports proposals covering medical care and  rehabilitation which I am sure will engage your earnest study and commend  your most generous support.  
1920-16	1920	Permit me to emphasize once more the need for action upon certain matters  upon which I dwelt at some length in my message to the second session of  the Sixty-sixth Congress. The necessity, for example, of encouraging the  manufacture of dyestuffs and related chemicals; the importance of doing  everything possible to promote agricultural production along economic  lines, to improve agricultural marketing, and to make rural life more  attractive and healthful; the need for a law regulating cold storage in  such a way as to limit the time during which goods may be kept in storage,  prescribing the method of disposing of them if kept beyond the permitted  period, and requiring goods released from storage in all cases to bear the  date of their receipt. It would also be most serviceable if it were  provided that all goods released from cold storage for interstate shipment  should have plainly marked upon each package the selling or market price at  which they went into storage, in order that the purchaser might be able to  learn what profits stood between him and the producer or the wholesale  dealer. Indeed, It would be very serviceable to the public if all goods  destined for interstate commerce were made to carry upon every packing case  whose form made it possible a plain statement of the price at which they  left the hands of the producer. I respectfully call your attention also to  the recommendations of the message referred to with regard to a federal  license for all corporations engaged in interstate commerce.  
1920-17	1920	In brief, the immediate legislative need of the time is the removal of all  obstacles to the realization of the best ambitions of our people in their  several classes of employment and the strengthening of all  instrumentalities by. which difficulties are to be met and removed and  justice dealt out, whether by law or by some form of mediation and  conciliation. I do not feel it to be my privilege at present to, suggest  the detailed and particular methods by which these objects may be attained,  but I have faith that the inquiries of your several committees will  discover the way and the method.  
1920-18	1920	In response to what I believe to be the impulse of sympathy and opinion  throughout the United States, I earnestly suggest that the Congress  authorize the Treasury of the United States to make to the struggling  government of Armenia such a loan as was made to several of the Allied  governments during the war, and I would also suggest that it would be  desirable to provide in the legislation itself that the expenditure of the  money thus loaned should be under the supervision of a commission, or at  least a commissioner, from the United States in order that revolutionary  tendencies within Armenia itself might not be afforded by the loan a  further tempting opportunity.  
1920-19	1920	Allow me to call your attention to the fact that the people of the  Philippine Islands have succeeded in maintaining a stable government since  the last action of the Congress in their behalf, and have thus fulfilled  the condition set by the Congress as precedent to a consideration of  granting independence to the Islands. I respectfully submit that this  condition precedent having been fulfilled, it is now our liberty and our  duty to keep our promise to the people of those islands by granting them  the independence which they so honorably covet.  
1920-20	1920	I have not so much laid before you a series of recommendations, gentlemen,  as sought to utter a confession of faith, of the faith in which I was bred  and which it is my solemn purpose to stand by until my last fighting day. I  believe this to be the faith of America, the faith of the future, and of  all the victories which await national action in the days to come, whether  in America or elsewhere.  
1921-1	1921	MR. SPEAKER AND MEMBERS OF THE CONGRESS:  
1921-2	1921	It is a very gratifying privilege to come to the Congress with the Republic  at peace with all the nations of the world. More, it is equally gratifying  to report that our country is not only free from every impending, menace of  war, but there are growing assurances of the permanency of the peace which  we so deeply cherish.  
1921-3	1921	For approximately ten years we have dwelt amid menaces of war or as  participants in war's actualities, and the inevitable aftermath, with its  disordered conditions, bits added to the difficulties of government which  adequately can not be appraised except by, those who are in immediate  contact and know the responsibilities. Our tasks would be less difficult if  we had only ourselves to consider, but so much of the world was involved,  the disordered conditions are so well-nigh universal, even among nations  not engaged in actual warfare, that no permanent readjustments can be  effected without consideration of our inescapable relationship to world  affairs in finance and trade. Indeed, we should be unworthy of our best  traditions if we were unmindful of social, moral, and political conditions  which are not of direct concern to us, but which do appeal to the human  sympathies and the very becoming interest of a people blest with our  national good fortune.  
1921-4	1921	It is not my purpose to bring to you a program of world restoration. In the  main such a program must be worked out by the nations more directly  concerned. They must themselves turn to the heroic remedies for the  menacing conditions under which they are struggling, then we can help, and  we mean to help. We shall do so unselfishly because there is compensation  in the consciousness of assisting, selfishly because the commerce and  international exchanges in trade, which marked our high tide of fortunate  advancement, are possible only when the nations of all continents are  restored to stable order and normal relationship.  
1921-5	1921	In the main the contribution of this Republic to restored normalcy in the  world must come through the initiative of the executive branch of the  Government, but the best of intentions and most carefully considered  purposes would fail utterly if the sanction and the cooperation of Congress  were not cheerfully accorded.  
1921-6	1921	I am very sure we shall have no conflict of opinion about constitutional  duties or authority. During the anxieties of war, when necessity seemed  compelling there were excessive grants of authority and all extraordinary  concentration of powers in the Chief Executive. The repeal of war-time  legislation and the automatic expirations which attended the peace  proclamations have put an end to these emergency excesses but I have the  wish to go further than that. I want to join you ill restoring-, ill the  most cordial way, the spirit of coordination and cooperation, and that  mutuality of confidence and respect which is necessary ill representative  popular government.  
1921-7	1921	Encroachment upon the functions of Congress or attempted dictation of its  policy are not to be thought of, much less attempted, but there is all  insistent call for harmony of purpose and concord of action to speed the  solution of the difficult problems confronting both the legislative and  executive branches of the Government.  
1921-8	1921	It is worth while to make allusion here to the character of our Clove  Government, mindful as one must be that an address to you is no less it  message to all our people, for whom you speak most intimately. Ours is it  popular Government through political parties. We divide along political  lines, and I would ever have it so. I do not mean that partisan preferences  should hinder any public servant in the performance of a conscientious and  patriotic official duty. We saw partisan lines utterly obliterated when war  imperiled, and our faith in the Republic was riveted anew. We ought not to  find these partisan lines obstructing the expeditious solution of the  urgent problems of peace.  
1921-9	1921	Granting that we are fundamentally a representative popular Government,  with political parties the governing agencies, I believe the political  party in power should assume responsibility, determine upon policies ill  the conference which supplements conventions and election campaigns, and  then strive for achievement through adherence to the accepted policy.  
1921-10	1921	There is vastly greater security, immensely more of the national  viewpoint, much larger and prompter accomplishment where our divisions are  along party lines, in the broader and loftier sense, than to divide  geographically, or according to pursuits, or personal following. For a  century and a third, parties have been charged with responsibility and held  to strict accounting. When they fail, they are relieved of authority; and  the system has brought its to a national eminence no less than a world  example.  
1921-11	1921	Necessarily legislation is a matter of compromise. The full ideal is seldom  attained. In that meeting of minds necessary to insure results, there must  and will be accommodations and compromises, but in the estimate of  convictions and sincere put-poses the supreme responsibility to national  interest must not be ignored. The shield to the high-minded public servant  who adheres to party policy is manifest, but the higher purpose is the good  of the Republic as a whole.  
1921-12	1921	It would be ungracious to withhold acknowledgment of the really large  volume and excellent quality of work accomplished by the extraordinary  session of Congress which so recently adjourned. I am not unmindful of the  very difficult tasks with which you were called to deal, and no one can  ignore the insistent conditions which, during recent years, have called for  the continued and almost exclusive attention of your membership to public  work. It would suggest insincerity if I expressed complete accord with  every expression recorded in your roll calls, but we are all agreed about  the difficulties and the inevitable divergence of opinion in seeking the  reduction, amelioration and readjustment of the burdens of taxation. Later  on, when other problems are solved, I shall make some recommendations about  renewed consideration of our tax program, but for the immediate time before  us we must be content with the billion dollar reduction in the tax draft  upon the people, and diminished irritations, banished uncertainty and  improved methods of collection. By your sustainment of the rigid economies  already inaugurated, with hoped-for extension of these economies and added  efficiencies in administration, I believe further reductions may be enacted  and hindering burdens abolished.  
1921-13	1921	In these urgent economies we shall be immensely assisted by the budget  system for which you made provision in the extraordinary session. The first  budget is before you. Its preparation is a signal achievement, and the  perfection of the system, a thing impossible in the few months available  for its initial trial, will mark its enactment as the beginning of the  greatest reformation in governmental practices since the beginning of the  Republic.  
1921-14	1921	There is pending a grant of authority to the administrative branch of the  Government for the funding and settlement of our vast foreign loans growing  out of our grant of war credits. With the hands of the executive branch  held impotent to deal with these debts we are hindering urgent  readjustments among our debtors and accomplishing nothing for ourselves. I  think it is fair for the Congress to assume that the executive branch of  the Government would adopt no major policy in dealing with these matters  which would conflict with the purpose of Congress in authorizing the loans,  certainly not without asking congressional approval, but there are minor  problems incident to prudent loan transactions and the safeguarding of our  interests which can not even be attempted without this authorization. It  will be helpful to ourselves and it will improve conditions among our  debtors if funding and the settlement of defaulted interest may be  negotiated.  
1921-15	1921	The previous Congress, deeply concerned in behalf of our merchant marine,  in 1920 enacted the existing shipping law, designed for the upbuilding of  the American merchant marine. Among other things provided to encourage our  shipping on the world's seas, the Executive was directed to give notice of  the termination of all existing commercial treaties in order to admit of  reduced duties on imports carried in American bottoms. During the life of  the act no Executive has complied with this order of the Congress. When the  present administration came into responsibility it began an early inquiry  into the failure to execute the expressed purpose of the Jones Act. Only  one conclusion has been possible. Frankly, Members of House and Senate,  eager its I am to join you in the making of an American merchant marine  commensurate with our commerce, the denouncement of our commercial  treaties would involve us in a chaos of trade relationships and add  indescribably to the confusion of the already disordered commercial world.  Our power to do so is not disputed, but power and ships, without comity of  relationship, will not give us the expanded trade which is inseparably  linked with a great merchant marine. Moreover, the applied reduction of  duty, for which the treaty denouncements were necessary, encouraged only  the carrying of dutiable imports to our shores, while the tonnage which  unfurls the flag on the seas is both free and dutiable, and the cargoes  which make it nation eminent in trade are outgoing, rather than incoming.  
1921-16	1921	It is not my thought to lay the problem before you in detail today. It is  desired only to say to you that the executive branch of the Government,  uninfluenced by the protest of any nation, for none has been made, is well  convinced that your proposal, highly intended and heartily supported here,  is so fraught with difficulties and so marked by tendencies to discourage  trade expansion, that I invite your tolerance of noncompliance for only a  few weeks until a plan may be presented which contemplates no greater draft  upon the Public Treasury, and which, though yet too crude to offer it  to-day, gives such promise of expanding our merchant marine, that it will  argue its own approval. It is enough to say to-day that we are so possessed  of ships, and the American intention to establish it merchant marine is so  unalterable, that a plain of reimbursement, at no other cost than is  contemplated in the existing act, will appeal to the pride and encourage  the hope of all the American people.  
1921-17	1921	There is before you the completion of the enactment of what has been termed  a "permanent" tariff law, the word "permanent" being used to distinguish  it from the emergency act which the Congress expedited early in the  extraordinary session, and which is the law today. I can not too strongly  urge in early completion of this necessary legislation It is needed to  stabilize our industry at home; it is essential to make more definite our  trade relations abroad. More, it is vital to the preservation of many of  our own industries which contribute so notably to the very lifeblood of our  Nation.  
1921-18	1921	There is now, and there always will be, a storm of conflicting opinion  about any tariff revision. We can not go far wrong when we base our tariffs  on the policy of preserving the productive activities which enhance  employment and add to our national prosperity.  
1921-19	1921	Again comes the reminder that we must not be unmindful of world conditions,  that peoples are struggling for industrial rehabilitation and that we can  not dwell in industrial and commercial exclusion and at the same time do  the just thing in aiding world reconstruction and readjustment. We do not  seek a selfish aloofness, and we could not profit by it, were it possible.  We recognize the necessity of buying wherever we sell, and the permanency  of trade lies in its acceptable exchanges. In our pursuit of markets we  must give as well as receive. We can not sell to others who do not produce,  nor can we buy unless we produce at home. Sensible of every obligation of  humanity, commerce and finance, linked as they are in the present world  condition, it is not to be argued that we need destroy ourselves to be  helpful to others. With all my heart I wish restoration to the peoples  blighted by the awful World War, but the process of restoration does not  lie in our acceptance of like conditions. It were better to, remain on firm  ground, strive for ample employment and high standards of wage at home, and  point the way to balanced budgets, rigid economies, and resolute, efficient  work as the necessary remedies to cure disaster.  
1921-20	1921	Everything relating to trade, among ourselves and among nations, has been  expanded, excessive, inflated, abnormal, and there is a madness in finance  which no American policy alone will cure. We are a creditor Nation, not by  normal processes, but made so by war. It is not an unworthy selfishness to  seek to save ourselves, when the processes of that salvation are not only  not denied to others, but commended to them. We seek to undermine for  others no industry by which they subsist; we are obligated to permit the  undermining of none of our own which make for employment and maintained  activities.  
1921-21	1921	Every contemplation, it little matters in which direction one turns,  magnifies the difficulty of tariff legislation, but the necessity of the  revision is magnified with it. Doubtless we are justified in seeking it.  More flexible policy than we have provided heretofore. I hope a way will be  found to make for flexibility and elasticity, so that rates may be adjusted  to meet unusual and changing conditions which can not be accurately  anticipated. There are problems incident to unfair practices, and to  exchanges which madness in money have made almost unsolvable. I know of no  manner in which to effect this flexibility other than the extension of the  powers of the Tariff Commission so that it can adapt itself to it  scientific and wholly just administration of the law.  
1921-22	1921	I am not unmindful of the constitutional difficulties. These can be met by  giving authority to the Chief Executive, who could proclaim-additional  duties to meet conditions which the Congress may designate.  
1921-23	1921	At this point I must disavow any desire to enlarge the Executive's powers  or add to the responsibilities of the office. They are already too large.  If there were any other plan I would prefer it.  
1921-24	1921	The grant of authority to proclaim would necessarily bring the Tariff  Commission into new and enlarged activities, because no Executive could  discharge such a duty except upon the information acquired and  recommendations made by this commission. But the plan is feasible, and the  proper functioning of the board would give its it better administration of  a defined policy than ever can be made possible by tariff duties prescribed  without flexibility.  
1921-25	1921	There is a manifest difference of opinion about the merits of American  valuation. Many nations have adopted delivery valuation as the basis for  collecting duties; that is, they take the cost of the imports delivered at  the port of entry as the basis for levying duty. It is no radical  departure, in view of varying conditions and the disordered state of money  values, to provide for American valuation, but there can not be ignored the  danger of such a valuation, brought to the level of our own production  costs, making our tariffs prohibitive. It might do so in many instances  where imports ought to be encouraged. I believe Congress ought well  consider the desirability of the only promising alternative, namely, a  provision authorizing proclaimed American valuation, under prescribed  conditions, on any given list of articles imported.  
1921-26	1921	In this proposed flexibility, authorizing increases to meet conditions so  likely to change, there should also be provision for decreases. A rate may  be just to-day, and entirely out of proportion six months from to-day. If  our tariffs are to be made equitable, and not necessarily burden our  imports and hinder our trade abroad, frequent adjustment will be necessary  for years to come. Knowing the impossibility of modification by act of  Congress for any one or a score of lines without involving a long array of  schedules, I think we shall go a long ways toward stabilization, if there  is recognition of the Tariff Commission's fitness to recommend urgent  changes by proclamation.  
1921-27	1921	I am sure about public opinion favoring the early determination of our  tariff policy. There have been reassuring signs of a business revival from  the deep slump which all the world has been experiencing. Our unemployment,  which gave its deep concern only a few weeks ago, has grown encouragingly  less, and new assurances and renewed confidence will attend the  congressional declaration that American industry will be held secure.  
1921-28	1921	Much has been said about the protective policy for ourselves making it  impossible for our debtors to discharge their obligations to us. This is a  contention not now pressing for decision. If we must choose between a  people in idleness pressing for the payment of indebtedness, or a people  resuming the normal ways of employment and carrying the credit, let us  choose the latter. Sometimes we appraise largest the human ill most vivid  in our minds. We have been giving, and are giving now, of our influence and  appeals to minimize the likelihood of war and throw off the crushing  burdens of armament. It is all very earnest, with a national soul  impelling. But a people unemployed, and gaunt with hunger, face a situation  quite as disheartening as war, and our greater obligation to-day is to do  the Government's part toward resuming productivity and promoting fortunate  and remunerative employment.  
1921-29	1921	Something more than tariff protection is required by American agriculture.  To the farmer has come the earlier and the heavier burdens of readjustment.  There is actual depression in our agricultural industry, while agricultural  prosperity is absolutely essential to the general prosperity of the  country.  
1921-30	1921	Congress has sought very earnestly to provide relief. It has promptly given  such temporary relief as has been possible, but the call is insistent for  the permanent solution. It is inevitable that large crops lower the prices  and short crops advance them. No legislation can cure that fundamental law.  But there must be some economic solution for the excessive variation in  returns for agricultural production.  
1921-31	1921	It is rather shocking to be told, and to have the statement strongly  supported, that 9,000,000 bales of cotton, raised on American plantations  in a given year, will actually be worth more to the producers than  13,000,000 bales would have been. Equally shocking is the statement that  700,000,000 bushels of wheat, raised by American farmers, would bring them  more money than a billion bushels. Yet these are not exaggerated  statements. In a world where there are tens of millions who need food and  clothing which they can not get, such a condition is sure to indict the  social system which makes it possible.  
1921-32	1921	In the main the remedy lies in distribution and marketing. Every proper  encouragement should be given to the cooperative marketing programs. These  have proven very helpful to the cooperating communities in Europe. In  Russia the cooperative community has become the recognized bulwark of law  and order, and saved individualism from engulfment in social paralysis.  Ultimately they will be accredited with the salvation of the Russian  State.  
1921-33	1921	There is the appeal for this experiment. Why not try it? No one challenges  the right of the farmer to a larger share of the consumer's pay for his  product, no one disputes that we can not live without the farmer. He is  justified in rebelling against the transportation cost. Given a fair  return for his labor, he will have less occasion to appeal for financial  aid; and given assurance that his labors shall not be in vain, we reassure  all the people of a production sufficient to meet our National requirement  and guard against disaster.  
1921-34	1921	The base of the pyramid of civilization which rests upon the soil is  shrinking through the drift of population from farm to city. For a  generation we have been expressing more or less concern about this  tendency. Economists have warned and statesmen have deplored. We thought  for at time that modern conveniences and the more intimate contact would  halt the movement, but it has gone steadily on. Perhaps only grim necessity  will correct it, but we ought to find a less drastic remedy.  
1921-35	1921	The existing scheme of adjusting freight rates hits been favoring the  basing points, until industries are attracted to some centers and repelled  from others. A great volume of uneconomic and wasteful transportation has  attended, and the cost increased accordingly. The grain-milling and  meat-packing industries afford ample illustration, and the attending  concentration is readily apparent. The menaces in concentration are not  limited to the retardingly influences on agriculture. Manifestly the.  conditions and terms of railway transportation ought not be permitted to  increase this undesirable tendency. We have a just pride in our great  cities, but we shall find a greater pride in the Nation, which has it  larger distribution of its population into the country, where comparatively  self-sufficient smaller communities may blend agricultural and  manufacturing interests in harmonious helpfulness and enhanced good  fortune. Such a movement contemplates no destruction of things wrought, of  investments made, or wealth involved. It only looks to a general policy of  transportation of distributed industry, and of highway construction, to  encourage the spread of our population and restore the proper balance  between city and country. The problem may well have your earnest  attention.  
1921-36	1921	It has been perhaps the proudest claim of our American civilization that in  dealing with human relationships it has constantly moved toward such  justice in distributing the product of human energy that it has improved  continuously the economic status of the mass of people. Ours has been a  highly productive social organization. On the way up from the elemental  stages of society we have eliminated slavery and serfdom and are now far on  the way to the elimination of poverty.  
1921-37	1921	Through the eradication of illiteracy and the diffusion of education  mankind has reached a stage where we may fairly say that in the United  States equality of opportunity has been attained, though all are not  prepared to embrace it. There is, indeed, a too great divergence between  the economic conditions of the most and the least favored classes in the  community. But even that divergence has now come to the point where we  bracket the very poor and the very rich together as the least fortunate  classes. Our efforts may well be directed to improving the status of both.  
1921-38	1921	While this set of problems is commonly comprehended under the general  phrase "Capital and labor," it is really vastly broader. It is a question  of social and economic organization. Labor has become a large contributor,  through its savings, to the stock of capital; while the people who own the  largest individual aggregates of capital are themselves often hard and  earnest laborers. Very often it is extremely difficult to draw the line of  demarcation between the two groups; to determine whether a particular  individual is entitled to be set down as laborer or as capitalist. In a  very large proportion of cases he is both, and when he is both he is the  most useful citizen.  
1921-39	1921	The right of labor to organize is just as fundamental and necessary as is  the right of capital to organize. The right of labor to negotiate, to deal  with and solve its particular problems in an organized way, through its  chosen agents, is just as essential as is the right of capital to organize,  to maintain corporations, to limit the liabilities of stockholders. Indeed,  we have come to recognize that the limited liability of the citizen as a  member of a labor organization closely parallels the limitation of  liability of the citizen as a stockholder in a corporation for profit.  Along this line of reasoning we shall make the greatest progress toward  solution of our problem of capital and labor.  
1921-40	1921	In the case of the corporation which enjoys the privilege of limited  liability of stockholders, particularly when engaged in in the public  service, it is recognized that the outside public has a large concern  which must be protected; and so we provide regulations, restrictions, and  in some cases detailed supervision. Likewise in the case of labor  organizations, we might well apply similar and equally well-defined  principles of regulation and supervision in order to conserve the public's  interests as affected by their operations.  
1921-41	1921	Just as it is not desirable that a corporation shall be allowed to impose  undue exactions upon the public, so it is not desirable that a labor  organization shall be permitted to exact unfair terms of employment or  subject the public to actual distresses in order to enforce its terms.  Finally, just as we are earnestly seeking for procedures whereby to adjust  and settle political differences between nations without resort to war, so  we may well look about for means to settle the differences between  organized capital and organized labor without resort to those forms of  warfare which we recognize under the name of strikes, lockouts, boycotts,  and the like.  
1921-42	1921	As we have great bodies of law carefully regulating the organization and  operations of industrial and financial corporations, as we have treaties  and compacts among nations which look to the settlement of differences  without the necessity of conflict in arms, so we might well have plans of  conference, of common counsel, of mediation, arbitration, and judicial  determination in controversies between labor and capital. To accomplish  this would involve the necessity to develop a thoroughgoing code of  practice in dealing with such affairs It might be well to frankly set forth  the superior interest of the community as a whole to either the labor group  or the capital group. With rights, privileges, immunities, and modes of  organization thus carefully defined, it should be possible to set up  judicial or quasi judicial tribunals for the consideration and  determination of all disputes which menace the public welfare.  
1921-43	1921	In an industrial society such as ours the strike, the lockout, and the  boycott are as much out of place and as disastrous in their results as is  war or armed revolution in the domain of politics. The same disposition to  reasonableness, to conciliation, to recognition of the other side's point  of view, the same provision of fair and recognized tribunals and processes,  ought to make it possible to solve the one set of questions its easily as  the other. I believe the solution is possible.  
1921-44	1921	The consideration of such a policy would necessitate the exercise of care  and deliberation in the construction of a code and a charter of elemental  rights, dealing with the relations of employer and employee. This  foundation in the law, dealing with the modern conditions of social and  economic life, would hasten the building of the temple of peace in industry  which a rejoicing nation would acclaim.  
1921-45	1921	After each war, until the last, the Government has been enabled to give  homes to its returned soldiers, and a large part of our settlement and  development has attended this generous provision of land for the Nation's  defenders.  
1921-46	1921	There is yet unreserved approximately 200,000,000 acres in the public  domain, 20,000,000 acres of which are known to be susceptible of  reclamation and made fit for homes by provision for irrigation.  
1921-47	1921	The Government has been assisting in the development of its remaining  lands, until the estimated increase in land values in the irrigated  sections is full $500,000,000 and the crops of 1920 alone on these lands  are estimated to exceed $100,000,000. Under the law authorization these  expenditures for development the advances are to be returned and it would  be good business for the Government to provide for the reclamation of the  remaining 20,000,000 acres, in addition to expediting the completion of  projects long under way.  
1921-48	1921	Under what is known as the coal and gas lease law, applicable also to  deposits of phosphates and other minerals on the public domain, leases are  now being made on the royalty basis, and are producing large revenues to  the Government. Under this legislation, 10 per centum of all royalties is  to be paid directly to the Federal Treasury, and of the remainder 50 per  centum is to be used for reclamation of arid lands by irrigation, and 40  per centum is to be paid to the States, in which the operations are  located, to be used by them for school and road purposes.  
1921-49	1921	These resources are so vast, and the development is affording so reliable a  basis of estimate, that the Interior Department expresses the belief that  ultimately the present law will add in royalties and payments to the  treasuries of the Federal Government and the States containing these public  lands a total of $12,000,000,000. This means, of course, an added wealth of  many times that sum. These prospects seem to afford every justification of  Government advances in reclamation and irrigation.  
1921-50	1921	Contemplating the inevitable and desirable increase of population, there is  another phase of reclamation full worthy of consideration. There are  79,000,000 acres of swamp and cut-over lands which may be reclaimed and  made as valuable as any farm lands we possess. These acres are largely  located in Southern States, and the greater proportion is owned by the  States or by private citizens. Congress has a report of the survey of this  field for reclamation, and the feasibility is established. I gladly commend  Federal aid, by way of advances, where State and private participation is  assured.  
1921-51	1921	Home making is one of the greater benefits which government can bestow.  Measures are pending embodying this sound policy to which we may well  adhere. It is easily possible to make available permanent homes which will  provide, in turn, for prosperous American families, without injurious  competition with established activities, or imposition on wealth already  acquired.  
1921-52	1921	While we are thinking of promoting the fortunes of our own people I am sure  there is room in the sympathetic thought of America for fellow human beings  who are suffering and dying of starvation in Russia. A severe drought in  the Valley of the Volga has plunged 15,000,000 people into grievous famine.  Our voluntary agencies are exerting themselves to the utmost to save the  lives of children in this area, but it is now evident that unless relief is  afforded the loss of life will extend into many millions. America can not  be deaf to such a call as that.  
1921-53	1921	We do not recognize the government of Russia, nor tolerate the propaganda  which emanates therefrom, but we do not forget the traditions of Russian  friendship. We may put aside our consideration of all international  politics and fundamental differences in government. The big thing is the  call of the suffering and the dying. Unreservedly I recommend the  appropriation necessary to supply the American Relief Administration with  10,000,000 bushels of corn and 1,000,000 bushels of seed grains, not alone  to halt the wave of death through starvation, but to enable spring planting  in areas where the seed grains have been exhausted temporarily to stem  starvation.  
1921-54	1921	The American Relief Administration is directed in Russia by former officers  of our own armies, and has fully demonstrated its ability to transport and  distribute relief through American hands without hindrance or loss. The  time has come to add the Government's support to the wonderful relief  already wrought out of the generosity of the American private purse.  
1921-55	1921	I am not unaware that we have suffering and privation at home. When it  exceeds the capacity for the relief within the States concerned, it will  have Federal consideration. It seems to me we should be indifferent to our  own heart promptings, and out of accord with the spirit which acclaims the  Christmastide, if we do not give out of our national abundance to lighten  this burden of woe upon a people blameless and helpless in famine's peril.  
1921-56	1921	There are it full score of topics concerning which it would be becoming to  address you, and on which I hope to make report at a later time. I have  alluded to the things requiring your earlier attention. However, I can not  end this limited address without a suggested amendment to the organic law.  
1921-57	1921	Many of us belong to that school of thought which is hesitant about  altering the fundamental law. I think our tax problems, the tendency of  wealth to seek nontaxable investment, and the menacing increase of public  debt, Federal, State and municipal-all justify a proposal to change the  Constitution so as to end the issue of nontaxable bonds. No action can  change the status of the many billions outstanding, but we can guard  against future encouragement of capital's paralysis, while a halt in the  growth of public indebtedness would be beneficial throughout our whole  land.  
1921-58	1921	Such a change in the Constitution must be very thoroughly considered before  submission. There ought to be known what influence it will have on the  inevitable refunding of our vast national debt, how it will operate on the  necessary refunding of State and municipal debt, how the advantages of  Nation over State and municipality, or the contrary, may be avoided.  Clearly the States would not ratify to their own apparent disadvantage. I  suggest the consideration because the drift of wealth into nontaxable  securities is hindering the flow of large capital to our industries,  manufacturing, agricultural, and carrying, until we are discouraging the  very activities which make our wealth.  
1921-59	1921	Agreeable to your expressed desire and in complete accord with the purposes  of the executive branch of the Government, there is in Washington, as you  happily know, an International Conference now most earnestly at work on  plans for the limitation of armament, a naval holiday, and the just  settlement of problems which might develop into causes of international  disagreement.  
1921-60	1921	It is easy to believe a world-hope is centered on this Capital City. A most  gratifying world-accomplishment is not improbable.  
1922-1	1922	MEMBERS OF THE CONGRESS:  
1922-2	1922	So many problems are calling for solution that a recital of all of them, in  the face of the known limitations of a short session of Congress, would  seem to lack sincerity of purpose. It is four years since the World War  ended, but the inevitable readjustment of the social and economic order is  not more than barely begun. There is no acceptance of pre-war conditions  anywhere in the world. In a very general way humanity harbors individual  wishes to go on with war-time compensation for production, with pre-war  requirements in expenditure. In short, everyone, speaking broadly, craves  readjustment for everybody except himself, while there can be no just and  permanent readjustment except when all participate.  
1922-3	1922	The civilization which measured its strength of genius and the power of  science and the resources of industries, in addition to testing the limits  of man power and the endurance and heroism of men and women--that same  civilization is brought to its severest test in restoring a tranquil order  and committing humanity to the stable ways of peace.  
1922-4	1922	If the sober and deliberate appraisal of pre-war civilization makes it seem  a worth-while inheritance, then with patience and good courage it will be  preserved. There never again will be precisely the old order; indeed, I  know of no one who thinks it to be desirable For out of the old order came  the war itself, and the new order, established and made secure, never will  permit its recurrence.  
1922-5	1922	It is no figure of speech to say we have come to the test of Our  civilization. The world has been passing--is today passing through of a  great crisis. The conduct of war itself is not more difficult than the  solution of the problems which necessarily follow. I am not speaking at  this moment of the problem in its wider aspect of world rehabilitation or  of international relationships. The reference is to our own social,  financial, and economic problems at home. These things are not to be  considered solely as problems apart from all international relationship,  but every nation must be able to carry on for itself, else its  international relationship will have scant importance.  
1922-6	1922	Doubtless our own people have emerged from the World War tumult less  impaired than most belligerent powers; probably we have made larger  progress toward reconstruction. Surely we have been fortunate in  diminishing unemployment, and our industrial and business activities, which  are the lifeblood of our material existence, have been restored as in no  other reconstruction period of like length in the history of the world. Had  we escaped the coal and railway strikes, which had no excuse for their  beginning and less justification for their delayed settlement, we should  have done infinitely better. But labor was insistent on holding to the war  heights, and heedless forces of reaction sought the pre-war levels, and  both were wrong. In the folly of conflict our progress was hindered, and  the heavy cost has not yet been fully estimated. There can be neither  adjustment nor the penalty of the failure to readjust in which all do not  somehow participate.  
1922-7	1922	The railway strike accentuated the difficulty of the American farmer. The  first distress of readjustment came to the farmer, and it will not be a  readjustment fit to abide until he is relieved. The distress brought to the  farmer does not affect him alone. Agricultural ill fortune is a national  ill fortune. That one-fourth of our population which produces the food of  the Republic and adds so largely to our export commerce must participate in  the good fortunes of the Nation, else there is none worth retaining.  
1922-8	1922	Agriculture is a vital activity in our national life. In it we had our  beginning, and its westward march with the star of the empire has reflected  the growth of the Republic. It has its vicissitudes which no legislation  will prevent, its hardships for which no law can provide escape. But the  Congress can make available to the farmer the financial facilities which  have been built up under Government aid and supervision for other  commercial and industrial enterprises. It may be done on the same solid  fundamentals and make the vitally important agricultural industry more  secure, and it must be done.  
1922-9	1922	This Congress already has taken cognizance of the misfortune which  precipitate deflation brought to American agriculture. Your measures of  relief and the reduction of the Federal reserve discount rate undoubtedly  saved the country from widespread disaster. The very proof of helpfulness  already given is the strongest argument for the permanent establishment of  widened credits, heretofore temporarily extended through the War Finance  Corporation.  
1922-10	1922	The Farm Loan Bureau, which already has proven its usefulness through the  Federal land banks, may well have its powers enlarged to provide ample farm  production credits as well as enlarged land credits. It is entirely  practical to create a division in the Federal land banks to deal with  production credits, with the limitations of time so adjusted to the farm  turnover as the Federal reserve system provides for the turnover in the  manufacturing and mercantile world. Special provision must be made for  live-stock production credits, and the limit of land loans may be safely  enlarged. Various measures are pending before you, and the best judgment of  Congress ought to be expressed in a prompt enactment at the present  session.  
1922-11	1922	But American agriculture needs more than added credit facilities. The  credits will help to solve the pressing problems growing out of  war-inflated land values and the drastic deflation of three years ago, but  permanent and deserved agricultural good fortune depends on better and  cheaper transportation.  
1922-12	1922	Here is an outstanding problem, demanding the most rigorous consideration  of the Congress and the country. It has to do with more than agriculture.  It provides the channel for the flow of the country's commerce. But the  farmer is particularly hard hit. His market, so affected by the world  consumption, does not admit of the price adjustment to meet carrying  charges. In the last half of the year now closing the railways, broken in  carrying capacity because of motive power and rolling stock out of order,  though insistently declaring to the contrary, embargoed his shipments or  denied him cars when fortunate markets were calling. Too frequently  transportation failed while perishable products were turning from possible  profit to losses counted in tens of millions.  
1922-13	1922	I know of no problem exceeding in importance this one of transportation. In  our complex and interdependent modern life transportation is essential to  our very existence. Let us pass for the moment the menace in the possible  paralysis of such service as we have and note the failure, for whatever  reason, to expand our transportation to meet the Nation's needs.  
1922-14	1922	The census of 1880 recorded a population of 50,000,000. In two decades more  we may reasonably expect to count thrice that number. In the three decades  ending in 1920 the country's freight by rail increased from 631,000,000  tons to 2,234,000,000 tons; that is to say, while our population was  increasing, less than 70 per cent, the freight movement increased over 250  per cent.  
1922-15	1922	We have built 40 per cent of the world's railroad mileage, and yet find it  inadequate to our present requirements. When we contemplate the inadequacy  of to-day it is easy to believe that the next few decades will witness the  paralysis of our transportation-using social scheme or a complete  reorganization on some new basis. Mindful of the tremendous costs of  betterments, extensions, and expansions, and mindful of the staggering  debts of the world to-day, the difficulty is magnified. Here is a problem  demanding wide vision and the avoidance of mere makeshifts. No matter what  the errors of the past, no matter how we acclaimed construction and then  condemned operations in the past, we have the transportation and the honest  investment in the transportation which sped us on to what we are, and we  face conditions which reflect its inadequacy to-day, its greater inadequacy  to-morrow, and we contemplate transportation costs which much of the  traffic can not and will not continue to pay.  
1922-16	1922	Manifestly, we have need to begin on plans to coordinate all transportation  facilities. We should more effectively connect up our rail lines with our  carriers by sea. We ought to reap some benefit from the hundreds of  millions expended on inland waterways, proving our capacity to utilize as  well as expend. We ought to turn the motor truck into a railway feeder and  distributor instead of a destroying competitor.  
1922-17	1922	It would be folly to ignore that we live in a motor age. The motor car  reflects our standard of living and gauges the speed of our present-day  life. It long ago ran down Simple Living, and never halted to inquire about  the prostrate figure which fell as its victim. With full recognition of  motor-car transportation we must turn it to the most practical use. It can  not supersede the railway lines, no matter how generously we afford it  highways out of the Public Treasury. If freight traffic by motor were  charged with its proper and proportionate share of highway construction, we  should find much of it wasteful and more costly than like service by rail.  Yet we have paralleled the railways, a most natural line of construction,  and thereby taken away from the agency of expected service much of its  profitable traffic, which the taxpayers have been providing the highways,  whose cost of maintenance is not yet realized.  
1922-18	1922	The Federal Government has a right to inquire into the wisdom of this  policy, because the National Treasury is contributing largely to this  highway construction. Costly highways ought to be made to serve as feeders  rather than competitors of the railroads, and the motor truck should become  a coordinate factor in our great distributing system.  
1922-19	1922	This transportation problem can not be waived aside. The demand for lowered  costs on farm products and basic materials can not be ignored. Rates  horizontally increased, to meet increased wage outlays during the war  inflation, are not easily reduced. When some very moderate wage reductions  were effected last summer there was a 5 per cent horizontal reduction in  rates. I sought at that time, in a very informal way, to have the railway  managers go before the Interstate Commerce Commission and agree to a  heavier reduction on farm products and coal and other basic commodities,  and leave unchanged the freight tariffs which a very large portion of the  traffic was able to bear. Neither the managers nor the commission tile@@  suggestion, so we had the horizontal reduction saw fit to adopt too slight  to be felt by the higher class cargoes and too little to benefit the heavy  tonnage calling most loudly for relief.  
1922-20	1922	Railways are not to be expected to render the most essential service in our  social organization without a air return on capital invested, but the  Government has gone so far in the regulation of rates and rules of  operation that it has the responsibility of pointing the way to the reduced  freight costs so essential to our national welfare.  
1922-21	1922	Government operation does not afford the cure. It was Government operation  which brought us to the very order of things against which we now rebel,  and we are still liquidating the costs of that supreme folly.  
1922-22	1922	Surely the genius of the railway builders has not become extinct among the  railway managers. New economies, new efficiencies in cooperation must be  found. The fact that labor takes 50 to 60 per cent of total railway  earnings makes limitations within which to effect economies very difficult,  but the demand is no less insistent on that account.  
1922-23	1922	Clearly the managers are without that intercarrier, cooperative  relationship so highly essential to the best and most economical operation.  They could not function in harmony when the strike threatened the paralysis  of all railway transportation. The relationship of the service to public  welfare, so intimately affected by State and Federal regulation, demands  the effective correlation and a concerted drive to meet an insistent and  justified public demand.  
1922-24	1922	The merger of lines into systems, a facilitated interchange of freight  cars, the economic use of terminals, and the consolidation of facilities  are suggested ways of economy and efficiency.  
1922-25	1922	I remind you that Congress provided a Joint Commission of Agricultural  Inquiry which made an exhaustive investigation of car service and  transportation, and unanimously recommended in its report of October 15,  1921, the pooling of freight cars under a central agency. This report well  deserves your serious consideration. I think well of the central agency,  which shall be a creation of the railways themselves, to provide, under the  jurisdiction of the Interstate Commerce Commission, the means for financing  equipment for carriers which are otherwise unable to provide their  proportion of car equipment adequate to transportation needs. This same  agency ought to point the way to every possible economy in maintained  equipment and the necessary interchanges in railway commerce.  
1922-26	1922	In a previous address to the Congress I called to your attention the  insufficiency of power to enforce the decisions of the Railroad Labor  Board. Carriers have ignored its decisions, on the one hand, railway  workmen have challenged its decisions by a strike, on the other hand.  
1922-27	1922	The intent of Congress to establish a tribunal to which railway labor and  managers may appeal respecting questions of wages and working conditions  can not be too strongly commended. It is vitally important that some such  agency should be a guaranty against suspended operation. The public must be  spared even the threat of discontinued service.  
1922-28	1922	Sponsoring the railroads as we do, it is an obligation that labor shall be  assured the highest justice and every proper consideration of wage and  working conditions, but it is an equal obligation to see that no concerted  action in forcing demands shall deprive the public of the transportation  service essential to its very existence. It is now impossible to safeguard  public interest, because the decrees of the board are unenforceable against  either employer or employee.  
1922-29	1922	The Labor Board itself is not so constituted as best to serve the public  interest. With six partisan members on a board of nine, three partisans  nominated by the employees and three by the railway managers, it is  inevitable that the partisan viewpoint is maintained throughout hearings  and in decisions handed down. Indeed, the few exceptions to a strictly  partisan expression in decisions thus far rendered have been followed by  accusations of betrayal of the partisan interests represented. Only the  public group of three is free to function in unbiased decisions. Therefore  the partisan membership may well be abolished, and decisions should be made  by an impartial tribunal.  
1922-30	1922	I am well convinced that the functions of this tribunal could be much  better carried on here in Washington. Even were it to be continued as a  separate tribunal, there ought to be contact with the Interstate Commerce  Commission, which has supreme authority in the rate making to which wage  cost bears an indissoluble relationship Theoretically, a fair and living  wage must be determined quite apart from the employer's earning capacity,  but in practice, in the railway service, they are inseparable. The record  of advanced rates to meet increased wages, both determined by the  Government, is proof enough.  
1922-31	1922	The substitution of a labor division in the Interstate Commerce Commission  made up from its membership, to hear and decide disputes relating to wages  and working conditions which have failed of adjustment by proper committees  created by the railways and their employees, offers a more effective plan.  
1922-32	1922	It need not be surprising that there is dissatisfaction over delayed  hearings and decisions by the present board when every trivial dispute is  carried to that tribunal. The law should require the railroads and their  employees to institute means and methods to negotiate between themselves  their constantly arising differences, limiting appeals to the Government  tribunal to disputes of such character as are likely to affect the public  welfare.  
1922-33	1922	This suggested substitution will involve a necessary increase in the  membership of the commission, probably four, to constitute the labor  division. If the suggestion appeals to the Congress, it will be well to  specify that the labor division shall be constituted of representatives of  the four rate-making territories, thereby assuring a tribunal conversant  with the conditions which obtain in the different ratemaking sections of  the country.  
1922-34	1922	I wish I could bring to you the precise recommendation for the prevention  of strikes which threaten the welfare of the people and menace public  safety. It is an impotent civilization and an inadequate government which  lacks the genius and the courage to guard against such a menace to public  welfare as we experienced last summer. You were aware of the Government's  great concern and its futile attempt to aid in an adjustment. It will  reveal the inexcusable obstinacy which was responsible for so much distress  to the country to recall now that, though all disputes are not yet  adjusted, the many settlements which have been made were on the terms which  the Government proposed in mediation.  
1922-35	1922	Public interest demands that ample power shall be conferred upon the. labor  tribunal, whether it is the present board or the suggested substitute, to  require its rulings to be accepted by both parties to a disputed question.  
1922-36	1922	Let there be no confusion about the purpose of the suggested conferment of  power to make decisions effective. There can be no denial of constitutional  rights of either railway workmen or railway managers. No man can be denied  his right to labor when and how he chooses, or cease to labor when he so  elects, but, since the Government assumes to safeguard his interests while  employed in an essential public service, the security of society itself  demands his retirement from the service shall not be so timed and related  as to effect the destruction of that service. This vitally essential public  transportation service, demanding so much of brain and brawn, so much for  efficiency and security, ought to offer the most attractive working  conditions and the highest of wages paid to workmen in any employment.  
1922-37	1922	In essentially every branch, from track repairer to the man at the  locomotive throttle, the railroad worker is responsible for the safety of  human lives and the care of vast property. His high responsibility might  well rate high his pay within the limits the traffic will bear; but the  same responsibility, plus governmental protection, may justly deny him and  his associates a withdrawal from service without a warning or under  circumstances which involve the paralysis of necessary transportation. We  have assumed so great a responsibility in necessary regulation that we  unconsciously have assumed the responsibility for maintained service;  therefore the lawful power for the enforcement of decisions is necessary  to sustain the majesty of government and to administer to the public  welfare.  
1922-38	1922	During its longer session the present Congress enacted a new tariff law.  The protection of the American standards of living demanded the insurance  it provides against the distorted conditions of world commerce The framers  of the law made provision for a certain flexibility of customs duties,  whereby it is possible to readjust them as developing conditions may  require. The enactment has imposed a large responsibility upon the  Executive, but that responsibility will be discharged with a broad  mindfulness of the whole business situation. The provision itself admits  either the possible fallibility of rates or their unsuitableness to  changing conditions. I believe the grant of authority may be promptly and  discreetly exercised, ever mindful of the intent and purpose to safeguard  American industrial activity, and at the same time prevent the exploitation  of the American consumer and keep open the paths of such liberal exchanges  as do not endanger our own productivity.  
1922-39	1922	No one contemplates commercial aloofness nor any other aloofness  contradictory to the best American traditions or loftiest human purposes.  Our fortunate capacity for comparative self-containment affords the firm  foundation on which to build for our own security, and a like foundation on  which to build for a future of influence and importance in world commerce.  Our trade expansion must come of capacity and of policies of righteousness  and reasonableness in till our commercial relations.  
1922-40	1922	Let no one assume that our provision for maintained good fortune at home,  and our unwillingness to assume the correction of all the ills of the  world, means a reluctance to cooperate with other peoples or to assume  every just obligation to promote human advancement anywhere in the world.  
1922-41	1922	War made its a creditor Nation. We did not seek an excess possession of the  world's gold, and we have neither desire to profit Unduly by its possession  nor permanently retain it. We do not seek to become an international  dictator because of its power.  
1922-42	1922	The voice of the United States has a respectful hearing in international  councils, because we have convinced the world that we have no selfish ends  to serve, no old grievances to avenge, no territorial or other greed to  satisfy. But the voice being heard is that of good counsel, not of  dictation. It is the voice of sympathy and fraternity and helpfulness,  seeking to assist but not assume for the United States burdens which  nations must bear for themselves. We would rejoice to help rehabilitate  currency systems and facilitate all commerce which does not drag us to the  very levels of those we seek to lift up.  
1922-43	1922	While I have everlasting faith in our Republic, it would be folly, indeed,  to blind ourselves to our problems at home. Abusing the hospitality of our  shores are the advocates of revolution, finding their deluded followers  among those who take on the habiliments of an American without knowing an  American soul. There is the recrudescence of hyphenated Americanism which  we thought to have been stamped out when we committed the Nation, life and  soul, to the World War.  
1922-44	1922	There is a call to make the alien respect our institutions while he  accepts our hospitality. There is need to magnify the American viewpoint to  the alien who seeks a citizenship among us. There is need to magnify the  national viewpoint to Americans throughout the land. More there is a demand  for every living being in the United States to respect and abide by the  laws of the Republic. Let men who are rending the moral fiber of the  Republic through easy contempt for the prohibition law, because they think  it restricts their personal liberty, remember that they set the example and  breed a contempt for law which will ultimately destroy the Republic.  
1922-45	1922	Constitutional prohibition has been adopted by the Nation. It is the  supreme law of the land. In plain speaking, there are conditions relating  to its enforcement which savor of nation-wide scandal. It is the most  demoralizing factor in our public life.  
1922-46	1922	Most of our people assumed that the adoption of the eighteenth amendment  meant the elimination of the question from our politics. On the contrary,  it has been so intensified as an issue that many voters are disposed to  make all political decisions with reference to this single question. It is  distracting the public mind and prejudicing the judgment of the  electorate.  
1922-47	1922	The day is unlikely to come when the eighteenth amendment will be repealed.  The fact may as well be recognized and our course adapted accordingly. If  the statutory provisions for its enforcement are contrary to deliberate  public opinion, which I do not believe the rigorous and literal enforcement  will concentrate public attention on any requisite modification. Such a  course, conforms with the law and saves the humiliation of the Government  and the humiliation of our people before the world, and challenges the  destructive forces engaged in widespread violation, official corruption and  individual demoralization.  
1922-48	1922	The eighteenth amendment involves the concurrent authority of State and  Federal Governments, for the enforcement of the policy it defines. A  certain lack of definiteness, through division of responsibility is thus  introduced. In order to bring about a full understanding of duties and  responsibilities as thus distributed, I purpose to invite the governors of  the States and Territories, at an early opportunity, to a conference with  the Federal Executive authority. Out of the full and free considerations  which will thus be possible, it is confidently believed, will emerge a more  adequate, comprehension of the whole problem, and definite policies of  National and State cooperation in administering the laws.  
1922-49	1922	There are pending bills for the registration of the alien who has come to  our shores. I wish the passage of such an act might be expedited. Life amid  American opportunities is worth the cost of registration if it is worth the  seeking, and the Nation has the right to know who are citizens in the  making or who live among us anti share our advantages while seeking to  undermine our cherished institutions. This provision will enable us to  guard against the abuses in immigration, checking the undesirable whose  irregular Willing is his first violation of our laws. More, it will  facilitate the needed Americanizing of those who mean to enroll as fellow  citizens.  
1922-50	1922	Before enlarging the immigration quotas we had better provide registration  for aliens, those now here or continually pressing for admission, and  establish our examination boards abroad, to make sure of desirables only.  By the examination abroad we could end the pathos at our ports, when men  and women find our doors closed, after long voyages and wasted savings,  because they are unfit for admission It would be kindlier and safer to tell  them before they embark.  
1922-51	1922	Our program of admission and treatment of immigrants is very intimately  related to the educational policy of the Republic With illiteracy estimated  at front two-tenths of 1 per cent to less than 2 per cent in 10 of the  foremost nations of Europe it rivets our attention to it serious problem  when we are reminded of a 6 per cent illiteracy in the United States. The  figures are based on the test which defines an Illiterate as one having no  schooling whatever. Remembering the wide freedom of our public schools  with compulsory attendance in many States in the Union, one is convinced  that much of our excessive illiteracy comes to us from abroad, and the  education of the immigrant becomes it requisite to his Americanization. It  must be done if he is fittingly to exercise the duties as well as enjoy the  privileges of American citizenship. Here is revealed the special field for  Federal cooperation in furthering education.  
1922-52	1922	From the very beginning public education has been left mainly in the hands  of the States. So far as schooling youth is concerned the policy has been  justified, because no responsibility can be so effective as that of the  local community alive to its task. I believe in the cooperation of the  national authority to stimulate, encourage, and broaden the work of the  local authorities. But it is the especial obligation of the Federal  Government to devise means and effectively assist in the education of the  newcomer from foreign lands, so that the level of American education may be  made the highest that is humanly possible.  
1922-53	1922	Closely related to this problem of education is the abolition of child  labor. Twice Congress has attempted the correction of the evils incident to  child employment. The decision of the Supreme Court has put this problem  outside the proper domain of Federal regulation until the Constitution is  so amended as to give the Congress indubitable authority. I recommend the  submission of such an amendment.  
1922-54	1922	We have two schools of thought relating to amendment of the Constitution.  One need not be committed to the belief that amendment is weakening the  fundamental law, or that excessive amendment is essential to meet every  ephemeral whim. We ought to amend to meet the demands of the people when  sanctioned by deliberate public opinion.  
1922-55	1922	One year ago I suggested the submission of an amendment so that we may  lawfully restrict the issues of tax-exempt securities, and I renew that  recommendation now. Tax-exempt securities are drying up the sources of  Federal taxation and they are encouraging unproductive and extravagant  expenditures by States and municipalities. There is more than the menace in  mounting public debt, there is the dissipation of capital which should be  made available to the needs of productive industry. The proposed amendment  will place the State and Federal Governments and all political subdivisions  on an exact equality, and will correct the growing menace of public  borrowing, which if left unchecked may soon threaten the stability of our  institutions.  
1922-56	1922	We are so vast and so varied in our national interests that scores of  problems are pressing for attention. I must not risk the wearying of your  patience with detailed reference.  
1922-57	1922	Reclamation and irrigation projects, where waste land may be made available  for settlement and productivity, are worthy of your favorable  consideration.  
1922-58	1922	When it is realized that we are consuming our timber four times as rapidly  as we are growing it, we must encourage the greatest possible cooperation  between the Federal Government, the various States, and the owners of  forest lands, to the end that protection from fire shall be made more  effective and replanting encouraged.  
1922-59	1922	The fuel problem is under study now by a very capable fact-finding  commission, and any attempt to deal with the coal problem, of such deep  concern to the entire Nation, must await the report of the commission.  
1922-60	1922	There are necessary studies of great problems which Congress might well  initiate. The wide spread between production costs and prices which  consumers pay concerns every citizen of the Republic. It contributes very  largely to the unrest in agriculture and must stand sponsor for much  against which we inveigh in that familiar term--the high cost of living.  
1922-61	1922	No one doubts the excess is traceable to the levy of the middleman, but it  would be unfair to charge him with all responsibility before we appraise  what is exacted of him by our modernly complex life. We have attacked the  problem on one side by the promotion of cooperative marketing, and we might  well inquire into the benefits of cooperative buying. Admittedly, the  consumer is much to blame himself, because of his prodigal expenditure and  his exaction of service, but Government might well serve to point the way  of narrowing the spread of price, especially between the production of food  and its consumption.  
1922-62	1922	A superpower survey of the eastern industrial region has recently been  completed, looking to unification of steam, water, and electric powers, and  to a unified scheme of power distribution. The survey proved that vast  economies in tonnage movement of freights, and in the efficiency of the  railroads, would be effected if the superpower program were adopted. I am  convinced that constructive measures calculated to promote such an  industrial development--I am tempted to say, such an industrial  revolution-would be well worthy the careful attention and fostering  interest of the National Government.  
1922-63	1922	The proposed survey of a plan to draft all the resources of the Republic,  human and material, for national defense may well have your approval. I  commended such a program in case of future war, in the inaugural address.  of March 4, 1921, and every experience in the adjustment and liquidation of  war claims and the settlement of war obligations persuades me we ought to  be prepared for such universal call to armed defense.  
1922-64	1922	I bring you no apprehension of war. The world is abhorrent of it, and our  own relations are not only free from every threatening cloud, but we have  contributed our larger influence toward making armed conflict less likely.  
1922-65	1922	Those who assume that we played our part in the World War and later took  ourselves aloof and apart, unmindful of world obligations, give scant  credit to the helpful part we assume in international relationships.  
1922-66	1922	Whether all nations signatory ratify all the treaties growing out of the  Washington Conference on Limitation of Armament or some withhold approval,  the underlying policy of limiting naval armament has the sanction of the  larger naval powers, and naval competition is suspended. Of course,  unanimous ratification is much to be desired.  
1922-67	1922	The four-power pact, which abolishes every probability of war on the  Pacific, has brought new confidence in a maintained peace, and I can well  believe it might be made a model for like assurances wherever in the world  any common interests are concerned.  
1922-68	1922	We have had expressed the hostility of the American people to a  supergovernment or to any commitment where either a council or an assembly  of leagued powers may chart our course. Treaties of armed alliance can have  no likelihood of American sanction, but we believe in respecting the rights  of nations, in the value of conference and consultation, in the  effectiveness of leaders of nations looking each other in the face ace  before resorting to the arbitrament of arms.  
1922-69	1922	It has been our fortune both to preach and promote international  understanding. The influence of the United States in bringing near the  settlement of an ancient dispute between South American nations is added  proof of the glow of peace in ample understanding. In Washington to-day are  met the delegates of the Central American nations, gathered at the table of  international understanding, to stabilize their Republics and remove every  vestige of disagreement. They are met here by our invitation, not in our  aloofness, and they accept our hospitality because they have faith in our  unselfishness and believe in our helpfulness. Perhaps we are selfish in  craving their confidence and friendship, but such a selfishness we proclaim  to the world, regardless of hemisphere, or seas dividing.  
1922-70	1922	I would like the Congress and the people of the Nation to believe that in a  firm and considerate way we are insistent on American rights wherever they  may be questioned, and deny no rights of others in the assertion of our  own. Moreover we are cognizant of the world's struggles for full  readjustment and rehabilitation, and we have shirked no duty which comes of  sympathy, or fraternity, or highest fellowship among nations. Every  obligation consonant with American ideals and sanctioned under our form of  government is willingly met. When we can not support we do not demand. Our  constitutional limitations do not forbid the exercise of a moral influence,  the measure of which is not less than the high purposes we have sought to  serve.  
1922-71	1922	After all there is less difference about the part this great Republic shall  play in furthering peace and advancing humanity than in the manner of  playing it. We ask no one to assume responsibility for us; we assume no  responsibility which others must bear for themselves, unless nationality is  hopelessly swallowed up in internationalism.  
1923-1	1923	Since the close of the last Congress the Nation has lost President Harding.  The world knew his kindness and his humanity, his greatness and his  character. He has left his mark upon history. He has made justice more  certain and peace more secure. The surpassing tribute paid to his memory as  he was borne across the continent to rest at last at home revealed the  place he held in the hearts of the American people. But this is not the  occasion for extended reference to the man or his work. In this presence,  among these who knew and loved him, that is unnecessary. But we who were  associated with him could not resume together the functions of our office  without pausing for a moment, and in his memory reconsecrating ourselves to  the service of our country. He is gone. We remain. It is our duty, under  the inspiration of his example, to take up the burdens which he was  permitted to lay down, and to develop and support the wise principles of  government which he represented.  
1923-2	1923	FOREIGN AFFAIRS  
1923-3	1923	For us peace reigns everywhere. We desire to perpetuate it always by  granting full justice to others and requiring of others full justice to  ourselves.  
1923-4	1923	Our country has one cardinal principle to maintain in its foreign policy.  It is an American principle. It must be an American policy. We attend to  our own affairs, conserve our own strength, and protect the interests of  our own citizens; but we recognize thoroughly our obligation to help  others, reserving to the decision of our own Judgment the time, the place,  and the method. We realize the common bond of humanity. We know the  inescapable law of service.  
1923-5	1923	Our country has definitely refused to adopt and ratify the covenant of the  League of Nations. We have not felt warranted in assuming the  responsibilities which its members have assumed. I am not proposing any  change in this policy; neither is the Senate. The incident, so far as we  are concerned, is closed. The League exists as a foreign agency. We hope it  will be helpful. But the United States sees no reason to limit its own  freedom and independence of action by joining it. We shall do well to  recognize this basic fact in all national affairs and govern ourselves  accordingly.  
1923-6	1923	WORLD COURT  
1923-7	1923	Our foreign policy has always been guided by two principles. The one is the  avoidance of permanent political alliances which would sacrifice our proper  independence. The other is the peaceful settlement of controversies between  nations. By example and by treaty we have advocated arbitration. For nearly  25 years we have been a member of The Hague Tribunal, and have long sought  the creation of a permanent World Court of Justice. I am in full accord  with both of these policies. I favor the establishment of such a court  intended to include the whole world. That is, and has long been, an  American policy.  
1923-8	1923	Pending before the Senate is a proposal that this Government give its  support to the Permanent Court of International Justice, which is a new and  somewhat different plan. This is not a partisan question. It should not  assume an artificial importance. The court is merely a convenient  instrument of adjustment to which we could go, but to which we could not  be brought. It should be discussed with entire candor, not by a political  but by a judicial method, without pressure and without prejudice.  Partisanship has no place in our foreign relations. As I wish to see a  court established, and as the proposal presents the only practical plan on  which many nations have ever agreed, though it may not meet every desire, I  therefore commend it to the favorable consideration of the Senate, with the  proposed reservations clearly indicating our refusal to adhere to the  League of Nations.  
1923-9	1923	RUSSIA  
1923-10	1923	Our diplomatic relations, lately so largely interrupted, are now being  resumed, but Russia presents notable difficulties. We have every desire to  see that great people, who are our traditional friends, restored to their  position among the nations of the earth. We have relieved their pitiable  destitution with an enormous charity. Our Government offers no objection  to the carrying on of commerce by our citizens with the people of Russia.  Our Government does not propose, however, to enter into relations with  another regime which refuses to recognize the sanctity of international  obligations. I do not propose to barter away for the privilege of trade any  of the cherished rights of humanity. I do not propose to make merchandise  of any American principles. These rights and principles must go wherever  the sanctions of our Government go.  
1923-11	1923	But while the favor of America is not for sale, I am willing to make very  large concessions for the purpose of rescuing the people of Russia. Already  encouraging evidences of returning to the ancient ways of society can be  detected. But more are needed. Whenever there appears any disposition to  compensate our citizens who were despoiled, and to recognize that debt  contracted with our Government, not by the Czar, but by the newly formed  Republic of Russia; whenever the active spirit of enmity to our  institutions is abated; whenever there appear works mete for repentance;  our country ought to be the first to go to the economic and moral rescue of  Russia. We have every desire to help and no desire to injure. We hope the  time is near at hand when we can act.  
1923-12	1923	DEBTS  
1923-13	1923	The current debt and interest due from foreign Governments, exclusive of  the British debt of $4,600,000,000, is about $7,200,000,000. I do not favor  the cancellation of this debt, but I see no objection to adjusting it in  accordance with the principle adopted for the British debt. Our country  would not wish to assume the role of an oppressive creditor, but would  maintain the principle that financial obligations between nations are  likewise moral obligations which international faith and honor require  should be discharged.  
1923-14	1923	Our Government has a liquidated claim against Germany for the expense of  the army of occupation of over $255,000,000. Besides this, the Mixed Claims  Commission have before them about 12,500 claims of American citizens,  aggregating about $1,225,000,000. These claims have already been reduced by  a recent decision, but there are valid claims reaching well toward  $500,000,000. Our thousands of citizens with credits due them of hundreds  of millions of dollars have no redress save in the action of our  Government. These are very substantial interests, which it is the duty of  our Government to protect as best it can. That course I propose to pursue.  
1923-15	1923	It is for these reasons that we have a direct interest in the economic  recovery of Europe. They are enlarged by our desire for the stability of  civilization and the welfare of humanity. That we are making sacrifices to  that end none can deny. Our deferred interest alone amounts to a million  dollars every day. But recently we offered to aid with our advice and  counsel. We have reiterated our desire to see France paid and Germany  revived. We have proposed disarmament. We have earnestly sought to compose  differences and restore peace. We shall persevere in well-doing, not by  force, but by reason.  
1923-16	1923	FOREIGN PAPERS  
1923-17	1923	Under the law the papers pertaining to foreign relations to be printed are  transmitted as a part of this message. Other volumes of these papers will  follow.  
1923-18	1923	FOREIGN SERVICE  
1923-19	1923	The foreign service of our Government needs to be reorganized and  improved.  
1923-20	1923	FISCAL CONDITION  
1923-21	1923	Our main problems are domestic problems. Financial stability is the first  requisite of sound government. We can not escape the effect of world  conditions. We can not avoid the inevitable results of the economic  disorders which have reached all nations. But we shall diminish their harm  to us in proportion as we continue to restore our Government finances to a  secure and endurable position. This we can and must do. Upon that firm  foundation rests the only hope of progress and prosperity. From that source  must come relief for the people.  
1923-22	1923	This is being, accomplished by a drastic but orderly retrenchment, which is  bringing our expenses within our means. The origin of this has been the  determination of the American people, the main support has been the courage  of those in authority, and the effective method has been the Budget System.  The result has involved real sacrifice by department heads, but it has been  made without flinching. This system is a law of the Congress. It represents  your will. It must be maintained, and ought to be strengthened by the  example of your observance. Without a Budget System there can be no fixed  responsibility and no constructive scientific economy.  
1923-23	1923	This great concentration of effort by the administration and Congress has  brought the expenditures, exclusive of the self-supporting Post. Office  Department, down to three billion dollars. It is possible, in consequence,  to make a large reduction in the taxes of the people, which is the sole  object of all curtailment. This is treated at greater length in the Budget  message, and a proposed plan has been presented in detail in a statement by  the Secretary of the Treasury which has my unqualified approval. I  especially commend a decrease on earned incomes, and further abolition of  admission, message, and nuisance taxes. The amusement and educational  value of moving pictures ought not to be taxed. Diminishing charges against  moderate incomes from investment will afford immense relief, while a  revision of the surtaxes will not only provide additional money for capital  investment, thus stimulating industry and employing more but will not  greatly reduce the revenue from that source, and may in the future actually  increase it.  
1923-24	1923	Being opposed to war taxes in time of peace, I am not in favor of  excess-profits taxes. A very great service could be rendered through  immediate enactment of legislation relieving the people of some of the  burden of taxation. To reduce war taxes is to give every home a better  chance.  
1923-25	1923	For seven years the people have borne with uncomplaining courage the  tremendous burden of national and local taxation. These must both be  reduced. The taxes of the Nation must be reduced now as much as prudence  will permit, and expenditures must be reduced accordingly. High taxes reach  everywhere and burden everybody. They gear most heavily upon the poor. They  diminish industry and commerce. They make agriculture unprofitable. They  increase the rates on transportation. They are a charge on every necessary  of life. Of all services which the Congress can render to the country, I  have no hesitation in declaring t neglect it, to postpone it, to obstruct  it by unsound proposals, is to become unworthy of public confidence and  untrue to public trust. The country wants this measure to have the right of  way over an others.  
1923-26	1923	Another reform which is urgent in our fiscal system is the abolition of the  right to issue tax-exempt securities. The existing system not only permits  a large amount of the wealth of the Notion to escape its just burden but  acts as a continual stimulant to municipal extravagance. This should be  prohibited by constitutional amendment. All the wealth of the Nation ought  to contribute its fair share to the expenses of the Nation.  
1923-27	1923	TARIFF TAW  
1923-28	1923	The present tariff law has accomplished its two main objects. It has  secured an abundant revenue and been productive of an abounding prosperity.  Under it the country has had a very large export and import trade. A  constant revision of the tariff by the Congress is disturbing and harmful.  The present law contains an elastic provision authorizing the President to  increase or decrease present schedules not in excess of 50 per centum to  meet the difference in cost of production at home and abroad. This does  not, to my mind, warrant a rewriting g of the whole law, but does mean, and  will be so administered, that whenever the required investigation shows  that inequalities of sufficient importance exist in any schedule, the power  to change them should and will be applied.  
1923-29	1923	SHIPPING  
1923-30	1923	The entire well being of our country is dependent upon transportation by  sea and land. Our Government during the war acquired a large merchant fleet  which should be transferred, as soon as possible, to private ownership and  operation under conditions which would secure two results: First, and of  prime importance, adequate means for national defense; second, adequate  service to American commerce. Until shipping conditions are such that our  fleet can be disposed of advantageously under these conditions, it will be  operated as economically as possible under such plans as may be devised  from time to time by the Shipping Board. We must have a merchant marine  which meets these requirements, and we shall have to pay the cost of its  service.  
1923-31	1923	PUBLIC IMPROVEMENTS  
1923-32	1923	The time has come to resume in a moderate way the opening of our  intracoastal waterways; the control of flood waters of the Mississippi and  of the Colorado Rivers; the improvement of the waterways from the Great  Lakes toward the Gulf of Mexico; and the development of the great power and  navigation project of the St. Lawrence River, for which efforts are now  being made to secure the necessary treaty with Canada. These projects can  not all be undertaken at once, but all should have the immediate  consideration of the Congress and be adopted as fast as plans can be  matured and the necessary funds become available. This is not incompatible  with economy, for their nature does not require so much a public  expenditure as a capital investment which will be reproductive, as  evidenced by the marked increase in revenue from the Panama Canal. Upon  these projects depend much future industrial and agricultural progress.  They represent the protection of large areas from flood and the addition of  a great amount of cheap power and cheap freight by use of navigation, chief  of which is the bringing of ocean-going ships to the Great Lakes.  
1923-33	1923	Another problem of allied character is the superpower development of the  Northeastern States, consideration of which is growing under the direction  of the Department of Commerce by joint conference with the local  authorities.  
1923-34	1923	RAILROADS  
1923-35	1923	Criticism of the railroad law has been directed, first, to the section  laying down the rule by which rates are fixed, and providing for payment to  the Government and use of excess earnings; second, to the method for the  adjustment of wage scales; and third, to the authority permitting  consolidations.  
1923-36	1923	It has been erroneously assumed that the act undertakes to guarantee  railroad earnings. The law requires that rates should be just and  reasonable. That has always been the rule under which rates have been  fixed. To make a rate that does not yield a fair return results in  confiscation, and confiscatory rates are of course unconstitutional. Unless  the Government adheres to the rule of making a rate that will yield a fair  return, it must abandon rate making altogether. The new and important  feature of that part of the law is the recapture and redistribution of  excess rates. The constitutionality of this method is now before the  Supreme Court for adjudication. Their decision should be awaited before  attempting further legislation on this subject. Furthermore, the importance  of this feature will not be great if consolidation goes into effect.  
1923-37	1923	The settlement of railroad labor disputes is a matter of grave public  concern. The Labor Board was established to protect the public in the  enjoyment of continuous service by attempting to insure justice between the  companies and their employees. It has been a great help, but is not  altogether satisfactory to the public, the employees, or the companies. If  a substantial agreement can be reached among the groups interested, there  should be no hesitation in enacting such agreement into law. If it is not  reached, the Labor Board may very well be left for the present to protect  the public welfare.  
1923-38	1923	The law for consolidations is not sufficiently effective to be expeditious.  Additional legislation is needed giving authority for voluntary  consolidations, both regional and route, and providing Government machinery  to aid and stimulate such action, always subject to the approval of the  Interstate Commerce Commission. This should authorize the commission to  appoint committees for each proposed group, representing the public and the  component roads, with power to negotiate with individual security holders  for an exchange of their securities for those of the, consolidation on such  terms and conditions as the commission may prescribe for avoiding any  confiscation and preserving fair values. Should this permissive  consolidation prove ineffective after a limited period, the authority of  the Government will have to be directly invoked.  
1923-39	1923	Consolidation appears to be the only feasible method for the maintenance of  an adequate system of transportation with an opportunity so to adjust  freight rates as to meet such temporary conditions as now prevail in some  agricultural sections. Competent authorities agree that an entire  reorganization of the rate structure for freight is necessary. This should  be ordered at once by the Congress.  
1923-40	1923	DEPARTMENT OF JUSTICE  
1923-41	1923	As no revision of the laws of the United States has been made since 1878, a  commission or committee should be created to undertake this work. The  Judicial Council reports that two more district judges are needed in the  southern district of New York, one in the northern district of Georgia, and  two more circuit judges in the Circuit Court of Appeals of the Eighth  Circuit. Legislation should be considered for this purpose.  
1923-42	1923	It is desirable to expedite the hearing and disposal of cases. A  commission of Federal judges and lawyers should be created to recommend  legislation by which the procedure in the Federal trial courts may be  simplified and regulated by rules of court, rather than by statute; such  rules to be submitted to the Congress and to be in force until annulled or  modified by the Congress. The Supreme Court needs legislation revising and  simplifying the laws governing review by that court, and enlarging the  classes of cases of too little public importance to be subject to review.  Such reforms would expedite the transaction of the business of the courts.  The administration of justice is likely to fail if it be long delayed.  
1923-43	1923	The National Government has never given adequate attention to its prison  problems. It ought to provide employment in such forms of production as can  be used by the Government, though not sold to the public in competition  with private business, for all prisoners who can be placed at work, and for  which they should receive a reasonable compensation, available for their  dependents.  
1923-44	1923	Two independent reformatories are needed; one for the segregation of women,  and another for the segregation of young men serving their first sentence.  
1923-45	1923	The administration of justice would be facilitated greatly by including in  the Bureau of Investigation of the Department of Justice a Division of  Criminal Identification, where there would be collected this information  which is now indispensable in the suppression of crime.  
1923-46	1923	PROHIBITION  
1923-47	1923	The prohibition amendment to the Constitution requires the Congress. and  the President to provide adequate laws to prevent its violation. It is my  duty to enforce such laws. For that purpose a treaty is being negotiated  with Great Britain with respect to the right of search of hovering  vessels. To prevent smuggling, the Coast Card should be greatly  strengthened, and a supply of swift power boats should be provided. The  major sources of production should be rigidly regulated, and every effort  should be made to suppress interstate traffic. With this action on the part  of the National Government, and the cooperation which is usually rendered  by municipal and State authorities, prohibition should be made effective.  Free government has no greater menace than disrespect for authority and  continual violation of law. It is the duty of a citizen not only to observe  the law but to let it be known that he is opposed to its violation.  
1923-48	1923	THE NEGRO  
1923-49	1923	Numbered among our population are some 12,000,000 colored people. Under our  Constitution their rights are just as sacred as those of any other citizen.  It is both a public and a private duty to protect those rights. The  Congress ought to exercise all its powers of prevention and punishment  against the hideous crime of lynching, of which the negroes are by no means  the sole sufferers, but for which they furnish a majority of the victims.  
1923-50	1923	Already a considerable sum is appropriated to give the negroes vocational  training in agriculture. About half a million dollars is recommended for  medical courses at Howard University to help contribute to the education of  500 colored doctors needed each year. On account of the integration of  large numbers into industrial centers, it has been proposed that a  commission be created, composed of members from both races, to formulate a  better policy for mutual understanding and confidence. Such an effort is to  be commended. Everyone would rejoice in the accomplishment of the results  which it seeks. But it is well to recognize that these difficulties are to  a large extent local problems which must be worked out by the mutual  forbearance and human kindness of each community. Such a method gives much  more promise of a real remedy than outside interference.  
1923-51	1923	CIVIL SERVICE  
1923-52	1923	The maintenance and extension of the classified civil service is  exceedingly important. There are nearly 550,000 persons in the executive  civil service drawing about $700,000,000 of yearly compensation.  Four-fifths of these are in the classified service. This method of  selection of the employees of the United States is especially desirable for  the Post Office Department. The Civil Service Commission has recommended  that postmasters at first, second, and third class offices be classified.  Such action, accompanied by a repeal of the four-year term of office, would  undoubtedly be an improvement. I also recommend that the field force for  prohibition enforcement be brought within the classified civil service  without covering in the present membership. The best method for selecting  public servants is the merit system.  
1923-53	1923	PUBLIC BUILDINGS  
1923-54	1923	Many of the departments in Washington need better housing facilities. Some  are so crowded that their work is impeded, others are so scattered that  they lose their identity. While I do not favor at this time a general  public building law, I believe it is now necessary, in accordance with  plans already sanctioned for a unified and orderly system for the  development of this city, to begin the carrying out of those plans by  authorizing the erection of three or four buildings most urgently needed by  an annual appropriation of $5,000,000.  
1923-55	1923	REGULATORY LEGISLATION  
1923-56	1923	Cooperation with other maritime powers is necessary for complete protection  of our coast waters from pollution. Plans for this are under way, but  await certain experiments for refuse disposal. Meantime laws prohibiting  spreading oil and oil refuse from vessels in our own territorial waters  would be most helpful against this menace and should be speedily enacted.  
1923-57	1923	Laws should be passed regulating aviation.  
1923-58	1923	Revision is needed of the laws regulating radio interference.  
1923-59	1923	Legislation and regulations establishing load liner, to provide safe  loading of vessels leaving our ports are necessary and recodification of  our navigation laws is vital.  
1923-60	1923	Revision of procedure of the Federal Trade Commission will give more  constructive purpose to this department.  
1923-61	1923	If our Alaskan fisheries are to be saved from destruction, there must be  further legislation declaring a general policy and delegating the authority  to make rules and regulations to an administrative body.  
1923-62	1923	ARMY AND NAVY  
1923-63	1923	For several years we have been decreasing the personnel of the Army and  Navy, and reducing their power to the danger point. Further reductions  should not be made. The Army is a guarantee of the security of our citizens  at home; the Navy is a guarantee of the security of our citizens abroad.  Both of these services should be strengthened rather than weakened.  Additional planes are needed for the Army, and additional submarines for  the Navy. The defenses of Panama must be perfected. We want no more  competitive armaments. We want no more war. But we want no weakness that  invites imposition. A people who neglect their national defense are putting  in jeopardy their national honor.  
1923-64	1923	INSULAR POSSESSIONS  
1923-65	1923	Conditions in the insular possessions on the whole have been good. Their  business has been reviving. They are being administered according to law.  That effort has the full support of the administration. Such  recommendations as may conic from their people or their governments should  have the most considerate attention.  
1923-66	1923	EDUCATION AND WELFARE  
1923-67	1923	Our National Government is not doing as much as it legitimately can do to  promote the welfare of the people. Our enormous material wealth, our  institutions, our whole form of society, can not be considered fully  successful until their benefits reach the merit of every individual. This  is not a suggestion that the Government should, or could, assume for the  people the inevitable burdens of existence. There is no method by which we  can either be relieved of the results of our own folly or be guaranteed a  successful life. There is an inescapable personal responsibility for the  development of character, of industry, of thrift, and of self-control.  These do not come from the Government, but from the people themselves. But  the Government can and should always be expressive of steadfast  determination, always vigilant, to maintain conditions under which these  virtues are most likely to develop and secure recognition and reward. This  is the American policy.  
1923-68	1923	It is in accordance with this principle that we have enacted laws for the  protection of the public health and have adopted prohibition in narcotic  drugs and intoxicating liquors. For purposes of national uniformity we  ought to provide, by constitutional amendment and appropriate legislation,  for a limitation of child labor, and in all cases under the exclusive  jurisdiction of the Federal Government a minimum wage law for women, which  would undoubtedly find sufficient power of enforcement in the influence of  public opinion.  
1923-69	1923	Having in mind that education is peculiarly a local problem, and that it  should always be pursued with the largest freedom of choice by students and  parents, nevertheless, the Federal Government might well give the benefit  of its counsel and encouragement more freely in this direction. If anyone  doubts the need of concerted action by the States of the Nation for this  purpose, it is only necessary to consider the appalling figures of  illiteracy representing a condition which does not vary much in all parts  of the Union. I do not favor the making of appropriations from the National  Treasury to be expended directly on local education, but I do consider it a  fundamental requirement of national activity which, accompanied by allied  subjects of welfare, is worthy of a separate department and a place in the  Cabinet. The humanitarian side of government should not be repressed, but  should be cultivated.  
1923-70	1923	Mere intelligence, however, is not enough. Enlightenment must be  accompanied by that moral power which is the product of the home and of  rebellion. Real education and true welfare for the people rest inevitably  on this foundation, which the Government can approve and commend, but which  the people themselves must create.  
1923-71	1923	IMMIGRATION  
1923-72	1923	American institutions rest solely on good citizenship. They were created by  people who had a background of self-government. New arrivals should be  limited to our capacity to absorb them into the ranks of good citizenship.  America must be kept American. For this purpose, it is necessary to  continue a policy of restricted immigration. It would be well to make such  immigration of a selective nature with some inspection at the source, and  based either on a prior census or upon the record of naturalization. Either  method would insure the admission of those with the largest capacity and  best intention of becoming citizens. I am convinced that our present  economic and social conditions warrant a limitation of those to be  admitted. We should find additional safety in a law requiring the immediate  registration of all aliens. Those who do not want to be partakers of the  American spirit ought not to settle in America.  
1923-73	1923	VETERANS  
1923-74	1923	No more important duty falls on the Government of the United States than  the adequate care of its veterans. Those suffering disabilities incurred in  the service must have sufficient hospital relief and compensation. Their  dependents must be supported. Rehabilitation and vocational training must  be completed. All of this service must be clean, must be prompt and  effective, and it must be administered in a spirit of the broadest and  deepest human sympathy. If investigation reveals any present defects of  administration or need Of legislation, orders will be given for the  immediate correction of administration, and recommendations for legislation  should be given the highest preference.  
1923-75	1923	At present there are 9,500 vacant beds in Government hospitals, I recommend  that all hospitals be authorized at once to receive and care for, without  hospital pay, the veterans of all wars needing such care, whenever there  are vacant beds, and that immediate steps be taken to enlarge and build new  hospitals to serve all such cases.  
1923-76	1923	The American Legion will present to the Congress a legislative program  too extensive for detailed discussion here. It is a carefully matured plan.  While some of it I do not favor, with much of it I am in hearty accord, and  I recommend that a most painstaking effort be made to provide remedies for  any defects in the administration of the present laws which their  experience has revealed. The attitude of the Government toward these  proposals should be one of generosity. But I do not favor the granting of a  bonus.  
1923-77	1923	COAL  
1923-78	1923	The cost of coal has become unbearably high. It places a great burden on  our industrial and domestic life. The public welfare requires a reduction  in the price of fuel. With the enormous deposits in existence, failure of  supply ought not to be tolerated. Those responsible for the conditions in  this industry should undertake its reform and free it from any charge of  profiteering.  
1923-79	1923	The report of the Coal Commission will be before the Congress. It comprises  all the facts. It represents the mature deliberations and conclusions of  the best talent and experience that ever made a national survey of the  production and distribution of fuel. I do not favor Government ownership or  operation of coal mines. The need is for action under private ownership  that will secure greater continuity of production and greater public  protection. The Federal Government probably has no peacetime authority to  regulate wages, prices, or profits in coal at the mines or among dealers,  but by ascertaining and publishing facts it can exercise great influence.  
1923-80	1923	The source of the difficulty in the bituminous coal fields is the  intermittence of operation which causes great waste of both capital and  labor. That part of the report dealing with this problem has much  significance, and is suggestive of necessary remedies. By amending, the car  rules, by encouraging greater unity of ownership, and possibly by  permitting common selling agents for limited districts on condition that  they accept adequate regulations and guarantee that competition between  districts be unlimited, distribution, storage, and continuity ought to be  improved.  
1923-81	1923	The supply of coal must be constant. In case of its prospective  interruption, the President should have authority to appoint a commission  empowered to deal with whatever emergency situation might arise, to aid  conciliation and voluntary arbitration, to adjust any existing or  threatened controversy between the employer and the employee when  collective bargaining fails, and by controlling distribution to prevent  profiteering in this vital necessity. This legislation is exceedingly  urgent, and essential to the exercise of national authority for the  protection of the people. Those who undertake the responsibility of  management or employment in this industry do so with the full knowledge  that the public interest is paramount, and that to fail through any motive  of selfishness in its service is such a betrayal of duty as warrants  uncompromising action by the Government.  
1923-82	1923	REORGANIZATION  
1923-83	1923	A special joint committee has been appointed to work out a plan for a  reorganization of the different departments and bureaus of the Government  more scientific and economical than the present system. With the exception  of the consolidation of the War and Navy Departments and some minor  details, the plan has the general sanction of the President and the  Cabinet. It is important that reorganization be enacted into law at the  present session.  
1923-84	1923	AGRICULTURE  
1923-85	1923	Aided by the sound principles adopted by the Government, the business of  the country has had an extraordinary revival. Looked at as a whole, the  Nation is in the enjoyment of remarkable prosperity. Industry and commerce  are thriving. For the most tart agriculture is successful, eleven staples  having risen in value from about $5,300,000,000 two years ago to about.  $7,000,000,000 for the current year. But range cattle are still low in  price, and some sections of the wheat area, notably Minnesota, North  Dakota, and on west, have many cases of actual distress. With his products  not selling on a parity with the products of industry, every sound remedy  that can be devised should be applied for the relief of the farmer. He  represents a character, a type of citizenship, and a public necessity that  must be preserved and afforded every facility for regaining prosperity.  
1923-86	1923	The distress is most acute among those wholly dependent upon one crop..  Wheat acreage was greatly expanded and has not yet been sufficiently  reduced. A large amount is raised for export, which has to meet the  competition in the world market of large amounts raised on land much  cheaper and much more productive.  
1923-87	1923	No complicated scheme of relief, no plan for Government fixing of prices,  no resort to the public Treasury will be of any permanent value in  establishing agriculture. Simple and direct methods put into operation by  the farmer himself are the only real sources for restoration.  
1923-88	1923	Indirectly the farmer must be relieved by a reduction of national and local  taxation. He must be assisted by the reorganization of the freight-rate  structure which could reduce charges on his production. To make this fully  effective there ought to be railroad consolidations. Cheaper fertilizers  must be provided.  
1923-89	1923	He must have organization. His customer with whom he exchanges products o  he farm for those of industry is organized, labor is organized, business is  organized, and there is no way for agriculture to meet this unless it, too,  is organized. The acreage of wheat is too large. Unless we can meet the  world market at a profit, we must stop raising for export. Organization  would help to reduce acreage. Systems of cooperative marketing created by  the farmers themselves, supervised by competent management, without doubt  would be of assistance, but, the can not wholly solve the problem. Our  agricultural schools ought to have thorough courses in the theory of  organization and cooperative marketing.  
1923-90	1923	Diversification is necessary. Those farmers who raise their living on their  land are not greatly in distress. Such loans as are wisely needed to assist  buying stock and other materials to start in this direction should be  financed through a Government agency as a temporary and emergency  expedient.  
1923-91	1923	The remaining difficulty is the disposition of exportable wheat. I do not  favor the permanent interference of the Government in this problem. That  probably would increase the trouble by increasing production. But it seems  feasible to provide Government assistance to exports, and authority should  be given the War Finance Corporation to grant, in its discretion, the most  liberal terms of payment for fats and grains exported for the direct  benefit of the farm.  
1923-92	1923	MUSCLE SHOALS  
1923-93	1923	The Government is undertaking to develop a great water-power project known  as Muscle Shoals, on which it has expended many million dollars. The work  is still going on. Subject to the right to retake in time of war, I  recommend that this property with a location for auxiliary steam plant and  rights of way be sold. This would end the present burden of expense and  should return to the Treasury the largest price possible to secure.  
1923-94	1923	While the price is an important element, there is another consideration  even more compelling. The agriculture of the Nation needs a greater supply  and lower cost of fertilizer. This is now imported in large quantities. The  best information I can secure indicates that present methods of power  production would not be able profitably to meet the price at which these  imports can be sold. To obtain a supply from this water power would require  long and costly experimentation to perfect a process for cheap production.  Otherwise our purpose would fail completely. It seems desirable, therefore,  in order to protect and promote the public welfare, to have adequate  covenants that such experimentation be made and carried on to success. The  great advantage of low-priced nitrates must be secured for the direct  benefit of the farmers and the indirect benefit of the public in time of  peace, and of the Government in time of war. If this main object be  accomplished, the amount of money received for the property is not a  primary or major consideration.  
1923-95	1923	Such a solution will involve complicated negotiations, and there is no  authority for that purpose. I therefore recommend that the Congress  appoint a small joint committee to consider offers, conduct negotiations,  and report definite recommendations.  
1923-96	1923	RECLAMATION  
1923-97	1923	By reason of many contributing causes, occupants of our reclamation  projects are in financial difficulties, which in some cases are acute.  Relief should be granted by definite authority of law empowering the  Secretary of the Interior in his discretion to suspend, readjust, and  reassess all charges against water users. This whole question is being  considered by experts. You will have the advantage of the facts and  conclusions which they may develop. This situation, involving a Government  investment of more than $135,000,000, and affecting more than 30,000 water  users, is serious. While relief which is necessary should be granted, yet  contracts with the Government which can be met should be met. The  established general policy of these projects should not be abandoned for  any private control.  
1923-98	1923	HIGHWAYS AND FORESTS  
1923-99	1923	Highways and reforestation should continue to have the interest and support  of the Government. Everyone is anxious for good highways. I have made a  liberal proposal in the Budget for the continuing payment to the States by  the Federal Government of its share for this necessary public improvement.  No expenditure of public money contributes so much to the national wealth  as for building good roads.  
1923-100	1923	Reforestation has an importance far above the attention it usually secures.  A special committee of the Senate is investigating this need, and I shall  welcome a constructive policy based on their report.  
1923-101	1923	It is 100 years since our country announced the Monroe doctrine. This  principle has been ever since, and is now, one of the main foundations of  our foreign relations. It must be maintained. But in maintaining it we must  not be forgetful that a great change has taken place. We are no longer a  weak Nation, thinking mainly of defense, dreading foreign imposition. We  are great and powerful. New powers bring new responsibilities. Our ditty  then was to protect ourselves. Added to that, our duty now is to help give  stability to the world. We want idealism. We want that vision which lifts  men and nations above themselves. These are virtues by reason of their own  merit. But they must not be cloistered; they must not be impractical; they  must not be ineffective.  
1923-102	1923	The world has had enough of the curse of hatred and selfishness, of  destruction and war. It has had enough of the wrongful use of material  power. For the healing of the nations there must be good will and charity,  confidence and peace. The time has come for a more practical use of moral  power, and more reliance upon the principle that right makes its own might.  Our authority among the nations must be represented by justice and mercy.  It is necessary not only to have faith, but to make sacrifices for our  faith. The spiritual forces of the world make all its final determinations.  It is with these voices that America should speak. Whenever they declare a  righteous purpose there need be no doubt that they will be heard. America  has taken her place in the world as a Republic--free, independent,  powerful. The best service that can be rendered to humanity is the  assurance that this place will be maintained.  
1924-1	1924	To the Congress of the United States:  
1924-2	1924	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.  
1924-3	1924	Our domestic problems are for the most part economic. We have our enormous  debt to pay, and we are paying it. We have the high cost of government to  diminish, and we are diminishing it. We have a heavy burden of taxation to  reduce, and we are reducing it. But while remarkable progress has been made  in these directions, the work is yet far from accomplished. We still owe  over $21,000,000,000, the cost of the National Government is still about  $3,500,000,000, and the national taxes still amount to about $27 for each  one of our inhabitants. There yet exists this enormous field for the  application of economy.  
1924-4	1924	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.  
1924-5	1924	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.  
1924-6	1924	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.  
1924-7	1924	TAXES  
1924-8	1924	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.  
1924-9	1924	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.  
1924-10	1924	WATERWAYS  
1924-11	1924	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.  
1924-12	1924	RECLAMATION  
1924-13	1924	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.  
1924-14	1924	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.  
1924-15	1924	It is estimated that the value of the crops for this harvest year may reach  $13,000,000,000, which is an increase of over $3,000,000,000 in three  years. It compares with $7,100,000,000 in 1913, and if we make deduction  from the figures of 1924 for the comparatively decreased value of the  dollar, the yield this year still exceeds 1913 in purchasing power by over  $1,000,000,000, and in this interval there has been no increase in the  number of farmers. Mostly by his own effort the farmer has 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.  
1924-16	1924	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.  
1924-17	1924	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.  
1924-18	1924	MUSCLE SHOALS  
1924-19	1924	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.  
1924-20	1924	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.  
1924-21	1924	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.  
1924-22	1924	RAILWAYS  
1924-23	1924	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.  
1924-24	1924	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.  
1924-25	1924	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.  
1924-26	1924	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.  
1924-27	1924	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.  
1924-28	1924	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.  
1924-29	1924	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.  
1924-30	1924	SHIPPING BOARD  
1924-31	1924	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.  
1924-32	1924	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.  
1924-33	1924	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.  
1924-34	1924	NATIONAL ELECTIONS  
1924-35	1924	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.  
1924-36	1924	THE JUDICIARY  
1924-37	1924	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.  
1924-38	1924	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.  
1924-39	1924	PRISON REFORM  
1924-40	1924	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.  
1924-41	1924	NATIONAL POLICE BUREAU  
1924-42	1924	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.  
1924-43	1924	DISTRICT OF COLUMBIA WELFARE  
1924-44	1924	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.  
1924-45	1924	FRENCH SPOLIATION CLAIMS  
1924-46	1924	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.  
1924-47	1924	THE WAGE EARNER  
1924-48	1924	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.  
1924-49	1924	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.  
1924-50	1924	THE NEGRO  
1924-51	1924	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.  
1924-52	1924	CIVIL SERVICE  
1924-53	1924	The merit system has long been recognized as the correct basis for  employment in our, civil service. I believe that first second, and third  class postmasters, and without covering in the present membership the  field force of prohibition enforcement, should be brought within the  classified service by statute law. Otherwise 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.  
1924-54	1924	DEPARTMENTAL REORGANIZATION  
1924-55	1924	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.  
1924-56	1924	ARMY AND NAVY  
1924-57	1924	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.  
1924-58	1924	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.  
1924-59	1924	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.  
1924-60	1924	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.  
1924-61	1924	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.  
1924-62	1924	VETERANS  
1924-63	1924	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.  
1924-64	1924	FOREIGN RELATIONS  
1924-65	1924	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.  
1924-66	1924	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.  
1924-67	1924	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.  
1924-68	1924	INTERNATIONAL COURT  
1924-69	1924	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.  
1924-70	1924	DISARMAMENT CONFERENCE  
1924-71	1924	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.  
1924-72	1924	INTERNATIONAL LAW  
1924-73	1924	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.  
1924-74	1924	OUTLAW OF WAR  
1924-75	1924	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.  
1924-76	1924	LATIN AMERICA  
1924-77	1924	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.  
1924-78	1924	FOREIGN DEBTS  
1924-79	1924	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.  
1924-80	1924	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.  
1924-81	1924	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.  
1925-1	1925	Members of the Congress:  
1925-2	1925	In meeting the constitutional requirement of informing the Congress upon  the state of the Union, it is exceedingly gratifying to report that the  general condition is one of progress and prosperity. Here and there are  comparatively small and apparently temporary difficulties needing  adjustment and improved administrative methods, such as are always to be  expected, but in the fundamentals of government and business the results  demonstrate that we are going in the right direction. The country does not  appear to require radical departures from the policies already adopted so  much as it needs a further extension of these policies and the improvement  of details. The age of perfection is still in the somewhat distant future,  but it is more in danger of being retarded by mistaken Government activity  than it is from lack of legislation. We are by far the most likely to  accomplish permanent good if we proceed with moderation.  
1925-3	1925	In our country the people are sovereign and independent, and must accept  the resulting responsibilities. It is their duty to support themselves and  support the Government. That is the business of the Nation, whatever the  charity of the Nation may require. The functions which the Congress are to  discharge are not those of local government but of National Government. The  greatest solicitude should be exercised to prevent any encroachment upon  the rights of the States or their various political subdivisions. Local  self-government is one of our most precious possessions. It is the greatest  contributing factor to the stability strength liberty, and progress of the  Nation. It ought not to be in ringed by assault or undermined by purchase.  It ought not to abdicate its power through weakness or resign its authority  through favor. It does not at all follow that because abuses exist it is  the concern of the Federal Government to attempt the r reform.  
1925-4	1925	Society is in much more danger from encumbering the National Government  beyond its wisdom to comprehend, or its ability to administer, than from  leaving the local communities to bear their own burdens and remedy their  own evils. Our local habit and custom is so strong, our variety of race and  creed is so great the Federal authority is so tenuous, that the area within  which it can function successfully is very limited. The wiser policy is to  leave the localities, so far as we can, possessed of their own sources of  revenue and charged with their own obligations.  
1925-5	1925	GOVERNMENT ECONOMY  
1925-6	1925	It is a fundamental principle of our country that the people are sovereign.  While they recognize the undeniable authority of the state, they have  established as its instrument a Government of limited powers. They hold  inviolate in their own hands the jurisdiction over their own freedom and  the ownership of their own property. Neither of these can be impaired  except by due process of law. The wealth of our country is not public  wealth, but private wealth. It does not belong to the Government, it  belongs to the people. The Government has no justification in taking  private Property except for a public purpose. It is always necessary to  keep these principles in mind in the laying of taxes and in the making of  appropriations. No right exists to levy on a dollar, or to order the  expenditure of a dollar, of the money of the people, except for a necessary  public purpose duly authorized by the Constitution. The power over the  purse is the power over liberty.  
1925-7	1925	That is the legal limitation within which the Congress can act, How it  will, proceed within this limitation is always a question of policy. When  the country is prosperous and free from debt, when the rate of taxation is  low, opportunity exists for assuming new burdens and undertaking new  enterprises. Such a condition now prevails only to a limited extent. All  proposals for assuming new obligations ought to be postponed, unless they  are reproductive capital investments or are such as are absolutely  necessary at this time. We still have an enormous debt of over  $20,000,000,000, on which the interest and sinking-fund requirements are  $1,320,000,000. Our appropriations for the Pension Office and the Veterans'  Bureau are $600,000,000. The War and Navy Departments call for  $642,000,000. Other requirements, exclusive of the Post Office which is  virtually self-sustaining, brought the appropriations for the current year  up to almost $3,100,060,000. This shows an expenditure of close to $30 for  every inhabitant of our country. For the average family of five it means a  tax, directly or indirectly paid, of about $150 for national purposes  alone. The local tax adds much more. These enormous expenditures ought not  to be increased, but through every possible effort they ought to be  reduced.  
1925-8	1925	Only one of these great items can be ultimately extinguished. That is the  item of our war debt. Already this has been reduced to about  $6,000,000,000, which means an annual saving in interest of close to  $250,000,000. The present interest charge is about $820,000,000 yearly. It  would seem to be obvious that the sooner this debt can be retired the more  the taxpayers will save in interest and the easier it will be to secure  funds with which to prosecute needed running expenses, constructions, and  improvements. This item of $820,000,000 for interest is a heavy charge on  all the people of the country, and it seems to me that we might well  consider whether it is not greatly worth while to dispense with it as early  as possible by retiring the principal debt which it is required to serve.  
1925-9	1925	It has always been our policy to retire our debts. That of the  Revolutionary War period, notwithstanding the additions made in 1812, was  paid by 1835. and the Civil War debt within 23 years. Of the amount already  paid, over $1,000,000,000 is a reduction in cash balances. That source is  exhausted. Over one and two-thirds billions of dollars was derived from  excess receipts. Tax reduction eliminates that. The sale of surplus war  materials has been another element of our income. That is practically  finished. With these eliminated, the reduction of the debt has been only  about $500,000,000 each year, not an excessive sum on so large a debt.  
1925-10	1925	Proposals have been made to extend the payment over a period of 62 years.  If $1,000,000,000 is paid at the end of 20 years, the cost to the taxpayers  is the principal and, if the interest is 4% per cent, a total of  $1,850,000,000. If the same sum is paid at the end of 62 years, the cost is  $3,635,000,000, or almost double. Here is another consideration: Compared  with its purchasing power in 1913, the dollar we borrowed represented but  52 cents. As the value of our dollar increases, due to the falling prices  of commodities, the burden of our debt increases. It has now risen to 631/2  cents. The taxpayer will be required to produce nearly twice the amount of  commodities to pay his debt if the dollar returns to the 1913 value. The  more we pay while prices are high, the easier it will be.  
1925-11	1925	Deflation of government after a war period is slower than deflation of  business, where curtailment is either prompt and effective or disaster  follows. There is room for further economy in the cost of the Federal  Government, but a co n of current expenditures with pre-war expenditures is  not able to the efficiency with which Government business is now being  done. The expenditures of 19161 the last pre-war year, were $742,000,000,  and in 1925 over $3,500,000,000, or nearly five times as great. If we  subtract expenditures for debt retirements and interest, veterans' relief,  increase of pensions, and other special outlays, consisting of refunds,  trust investments, and like charges, we find that the general expenditures  of the Government in 1925 were slightly more than twice as large as in  1916.  
1925-12	1925	As prices in 1925 were approximately 40 per cent higher than in 1916, the  cost of the same Government must also have increased. But the Government is  not the same. It is more expensive to collect the much greater revenue  necessary and to administer our great debt. We have given enlarged and  improved services to agriculture and commerce. Above all, America has grown  in population and wealth. Government expenditures must always share in  this growth. Taking into account the factors I have mentioned, I believe  that present Federal expenses are not far out of line with pre-war  expenses. We have nearly accomplished the deflation.  
1925-13	1925	This does not mean that further economies will not come. As we reduce our  debt our interest charges decline. There are many details yet to correct.  The real improvement, however, must come not from additional curtailment of  expenses, but by a more intelligent, more ordered spending. Our economy  must be constructive. While we should avoid as far as possible increases in  permanent current expenditures, oftentimes a capital outlay like internal  improvements will result in actual constructive saving. That is economy in  its best sense. It is an avoidance of waste that there may be the means for  an outlay to-day which will bring larger returns to-morrow. We should  constantly engage in scientific studies of our future requirements and  adopt an orderly program for their service. Economy is the method by which  we prepare to-day to afford the improvements of to-morrow.  
1925-14	1925	A mere policy of economy without any instrumentalities for putting it into  operation would be very ineffective. The Congress has wisely set up the  Bureau of the Budget to investigate and inform the President what  recommendations he ought to make for current appropriations. This gives a  centralized authority where a general and comprehensive understanding can  be reached of the sources of income and the most equitable distribution of  expenditures. How well it has worked is indicated by the fact that the  departmental estimates for 1922, before the budget law, were $4,068,000,000  while the Budget estimates for 1927 are $3,156,000,000. This latter figure  shows the reductions in departmental estimates for the coming year made  possible by the operation of the Budget system that the Congress has  provided.  
1925-15	1925	But it is evidently not enough to have care in making appropriations  without any restraint upon expenditure. The Congress has provided that  check by establishing the office of Comptroller General.  
1925-16	1925	The purpose of maintaining the Budget Director and the Comptroller General  is to secure economy and efficiency in Government expenditure. No better  method has been devised for the accomplishment of that end. These offices  can not be administered in all the various details without making some  errors both of fact and of judgment. But the important consideration  remains that these are the instrumentalities of the Congress and that no  other plan has ever been adopted which was so successful in promoting  economy and efficiency. The Congress has absolute authority over the  appropriations and is free to exercise its judgment, as the evidence may  warrant, in increasing or decreasing budget recommendations. But it ought  to resist every effort to weaken or break down this most beneficial system  of supervising appropriations and expenditures. Without it all the claim of  economy would be a mere pretense.  
1925-17	1925	TAXATION  
1925-18	1925	The purpose of reducing expenditures is to secure a reduction in taxes.  That purpose is about to be realized. With commendable promptness the Ways  and Means Committee of the House has undertaken in advance of the meeting  of the Congress to frame a revenue act. As the bill has proceeded through  the committee it has taken on a nonpartisan character, and both Republicans  and Democrats have joined in a measure which embodies many sound principles  of tax reform. The bill will correct substantially the economic defects  injected into the revenue act of 1924, as well as many which have remained  as war-time legacies. In its present form it should provide sufficient  revenue for the Government.  
1925-19	1925	The excessive surtaxes have been reduced, estate tax rates are restored to  more reasonable figures, with every prospect of withdrawing from the field  when the States have had the opportunity to correct the abuses in their own  inheritance tax laws, the gift tax and publicity section are to be repealed  many miscellaneous taxes are lowered or abandoned, and the Board of Tax  Appeals and the administrative features of the law are improved and  strengthened. I approve of the bill in principle. In so far as income-tax  exemptions are concerned, it seems, to me the committee has gone as far as  it is Safe to go and somewhat further than I should have gone. Any further  extension along these lines would, in my opinion, impair the integrity of  our income-tax system.  
1925-20	1925	I am advised that the bill will be through the House by Christmas. For  this prompt action the country call thank the good sense of the Ways and  Means Committee in framing an economic measure upon economic  considerations. If this attitude continues to be reflected through the  Congress, the taxpayer will have his relief by the time his March 15th  installment of income taxes is due. Nonpartisan effort means certain, quick  action. Determination of a revenue law definitely, promptly and solely as a  revenue law, is one of the greatest gifts a legislature can bestow upon its  constituents. I commend the example of file Ways and Means Committee. If  followed, it will place sound legislation upon the books in time to give  the taxpayers the full benefit of tax reduction next year. This means that  the bill should reach me prior to March 15.  
1925-21	1925	All these economic results are being sought not to benefit the rich, but to  benefit the people. They are for the purpose of encouraging industry in  order that employment may be plentiful. They seek to make business good in  order that wages may be good. They encourage prosperity in order that  poverty may be banished from the home. They, seek to lay the foundation  which, through increased production, may, give the people a more bountiful  supply of the necessaries of life, afford more leisure for the improvement  of the mind, the appreciation of the arts of music and literature,  sculpture and painting, and the beneficial enjoyment of outdoor sports and  recreation, enlarge the resources which minister to charity and by all  these means attempting to strengthen the spiritual life of the Nation.  
1925-22	1925	FOREIGN RELATIONS  
1925-23	1925	The policy of our foreign relations, casting aside any suggestion of force,  rests solely on the foundation of peace, good will, and good works. We have  sought, in our intercourse with other nations, better understandings  through conference and exchange of views its befits beings endowed with  reason. The results have been the gradual elimination of disputes, the  settlement of controversies, and the establishment of a firmer friendship  between America and the rest of the world that has ever existed tit any  previous time.  
1925-24	1925	The example of this attitude has not been without its influence upon other  countries. Acting upon it, an adjustment was made of the difficult problem  of reparations. This was the second step toward peace in Europe. It paved  the way for the agreements which were drawn up at the Locarno Conference.  When ratified, these will represent the third step toward peace. While they  do not of themselves provide an economic rehabilitation, which is necessary  for the progress of Europe, by strengthening the guarantees of peace they  diminish the need for great armaments. If the energy which now goes into  military effort is transferred to productive endeavor it will greatly  assist economic progress.  
1925-25	1925	The Locarno agreements were made by the, European countries directly  interested without any formal intervention of America, although on July 3  I publicly advocated such agreements in an address made in Massachusetts.  We have consistently refrained from intervening except when our help has  been sought and we have felt it could be effectively given, as in the  settlement of reparations and the London Conference. These recent Locarno  agreements represent the success of this policy which we have been  insisting ought to be adopted, of having European countries settle their  own political problems without involving this country. This beginning seems  to demonstrate that this policy is sound. It is exceedingly gratifying to  observe this progress, both in its method and in its result promises so  much that is beneficial to the world.  
1925-26	1925	When these agreements are finally adopted, they will provide guarantees of  peace that make the present prime reliance upon force in some parts of  Europe very much less necessary. The natural corollary to these treaties  should be further international contracts for the limitation of armaments.  This work was successfully begun at the Washington Conference. Nothing was  done at that time concerning land forces because of European objection. Our  standing army has been reduced to around 118,000, about the necessary  police force for 115,000,000 people. We are not proposing to increase it,  nor is it supposable that any foreign country looks with the slightest  misapprehension upon our land forces. They do not menace anybody. They are  rather a protection to everybody.  
1925-27	1925	The question of disarming upon land is so peculiarly European in its  practical aspects that our country would look with particular gratitude  upon any action which those countries might take to reduce their own  military forces. This is in accordance with our policy of not intervening  unless the European powers are unable to agree and make request for our  assistance. Whenever they are able to agree of their own accord it is  especially gratifying to its, and such agreements may be sure of our  sympathetic support.  
1925-28	1925	It seems clear that it is the reduction of armies rather than of navies  that is of the first importance to the world at the present time. We shall  look with great satisfaction upon that effort and give it our approbation  and encouragement. If that can be settled, we may more easily consider  further reduction and limitation of naval armaments. For that purpose our  country has constantly through its Executive, and through repeated acts of  Congress, indicated its willingness to call such a conference. Under  congressional sanction it would seem to be wise to participate in any  conference of the great powers for naval limitation of armament proposed  upon such conditions that it would hold a fair promise of being effective.  The general policy of our country is for disarmament, and it ought not to  hesitate to adopt any practical plan that might reasonably be expected to  succeed. But it would not care to attend a conference which from its  location or constituency would in all probability prove futile.  
1925-29	1925	In the further pursuit, of strengthening the bonds of peace and good will  we have joined with other nations in an international conference held at  Geneva and signed an agreement which will be laid before the Senate for  ratification providing suitable measures for control and for publicity in  international trade in arms, ammunition, and implements of war, and also  executed a protocol providing for a prohibition of the use of poison gas in  war, in accordance with the principles of Article 5 of the treaty relating  thereto signed at the Washington Conference. We are supporting the Pan  American efforts that are being made toward the codification of  international law, and looking with sympathy oil the investigations  conducted under philanthropic auspices of the proposal to agreements  outlawing war. In accordance with promises made at the Washington  Conference, we have urged the calling of and are now represented at the  Chinese Customs Conference and on the Commission on Extraterritoriality,  where it will be our policy so far as possible to meet the, aspirations of  China in all ways consistent with the interests of the countries involved.  
1925-30	1925	COURT OF INTERNATIONAL JUSTICE  
1925-31	1925	Pending before the Senate for nearly three years is the proposal to adhere  to the protocol establishing the Permanent Court of International Justice.  A well-established line of precedents mark America's effort to effect the  establishment of it court of this nature.. We took a leading part in laying  the foundation on which it rests in the establishment of The Hague Court of  Arbitration. It is that tribunal which nominates the judges who are elected  by the Council and Assembly of the League of Nations.  
1925-32	1925	The proposal submitted to the Senate was made dependent upon four  conditions, the first of which is that by supporting the court we do not  assume any obligations under the league; second, that we may participate  upon an equality with other States in the election of judges; third, that  the Congress shall determine what part of the expenses we shall bear;  fourth, that the statute creating the court shall not be amended without  out consent; and to these I have proposed an additional condition to the  effect that we are not to be bound by advisory opinions rendered without  our consent.  
1925-33	1925	The court appears to be independent of the league. It is true the judges  are elected by the Assembly and Council, but they are nominated by the  Court of Arbitration, which we assisted to create and of which we are a  part. The court was created by it statute, so-called, which is really a  treaty made among some forty-eight different countries, that might properly  be called a constitution of the court. This statute provides a method by  which the judges are chosen so that when the Court of Arbitration  nominates them and the Assembly and Council of the League elect them, they  are not acting as instruments of the Court of Arbitration or instruments of  the league, but as instruments of the statute.  
1925-34	1925	This will be even more apparent if our representatives sit with the members  of the council and assembly in electing the judges. It is true they are  paid through the league though not by the league, but by the countries  which are members of the league and by our country if we accept the  protocol. The judges are paid by the league only in the same sense that it  could be said United States judges are paid by the Congress. The court  derives all its authority from the statute and is so completely independent  of the league that it could go on functioning if the league were disbanded,  at least until the terms of the judges expired.  
1925-35	1925	The most careful provisions are made in the statute as to the  qualifications of judges. Those who make the nominations are recommended to  consult with their highest court of justice, their law schools and  academies. The judges must be persons of high moral character, qualified to  hold the highest judicial offices in that country, or be jurisconsults of  recognized competence in international law. It must be assumed that these  requirements will continue to be carefully met, and with America joining  the countries already concerned it is difficult to comprehend how human  ingenuity could better provide for the establishment of a court which would  maintain its independence. It has to be recognized that independence is to  a considerable extent a matter of ability, character, and personality. Some  effort was made in the early beginnings to interfere with the independence  of our Supreme Court. It did not succeed because of the quality of the men  who made up that tribunal.  
1925-36	1925	It does not seem that the authority to give advisory opinions interferes  with the independence of the court. Advisory opinions in and of themselves  are not harmful, but may be used in such a way as to be very beneficial  because they undertake to prevent injury rather than merely afford a remedy  after the injury has been done. As a principle that only implies that the  court shall function when proper application is made to it. Deciding the  question involved upon issues submitted for an advisory opinion does not  differ materially from deciding the question involved upon issues submitted  by contending parties. Up to the present time the court has given an  advisory opinion when it judged it had jurisdiction, and refused to give  one when it judged it did not have jurisdiction. Nothing in the work of the  court has yet been an indication that this is an impairment of its  independence or that its practice differs materially from the giving of  like opinions under the authority of the constitutions of several of our  States.  
1925-37	1925	No provision of the statute seems to me to give this court any authority to  be a political rather than a judicial court. We have brought cases in this  country before our courts which, when they have been adjudged to be  political, have been thereby dismissed. It is not improbable that political  questions will be submitted to this court, but again up to the present time  the court has refused to pass on political questions and our support would  undoubtedly have a tendency to strengthen it in that refusal.  
1925-38	1925	We are not proposing to subject ourselves to any compulsory jurisdiction.  If we support the court, we can never be obliged to submit any case which  involves our interests for its decision. Our appearance before it would  always be voluntary, for the purpose of presenting a case which we had  agreed might be presented. There is no more danger that others might bring  cases before the court involving our interests which we did not wish to  have brought, after we have adhered, and probably not so much, than there  would be of bringing such cases if we do not adhere. I think that we would  have the same legal or moral right to disregard such a finding in the one  case that we would in the other.  
1925-39	1925	If we are going to support any court, it will not be one that we have set  up alone or which reflects only our ideals. Other nations have their  customs and their institutions, their thoughts and their methods of life.  If a court is going to be international, its composition will have to yield  to what is good in all these various elements. Neither will it be possible  to support a court which is exactly perfect, or under which we assume  absolutely no obligations. If we are seeking that opportunity, we might as  well declare that we are opposed to supporting any court. If any agreement  is made, it will be because it undertakes to set up a tribunal which can do  some of the things that other nations wish to have done. We shall not find  ourselves bearing a disproportionate share of the world's burdens by our  adherence, and we may as well remember that there is absolutely no escape  for our country from bearing its share of the world's burdens in any case.  We shall do far better service to ourselves and to others if we admit this  and discharge our duties voluntarily, than if we deny it and are forced to  meet the same obligations unwillingly.  
1925-40	1925	It is difficult to imagine anything that would be more helpful to the world  than stability, tranquility and international justice. We may say that we  are contributing to these factors independently, but others less  fortunately located do not and can not make a like contribution except  through mutual cooperation. The old balance of power, mutual alliances, and  great military forces were not brought bout by any mutual dislike for  independence, but resulted from the domination of circumstances. Ultimately  they were forced on us. Like all others engaged in the war whatever we said  as a matter of fact we joined an alliance, we became a military power, we  impaired our independence. We have more at stake than any one else in  avoiding a repetition of that calamity. Wars do not, spring into existence.  They arise from small incidents and trifling irritations which can be  adjusted by an international court. We can contribute greatly to the  advancement of our ideals by joining with other nations in maintaining such  a tribunal.  
1925-41	1925	FOREIGN DEBTS  
1925-42	1925	Gradually, settlements have been made which provide for the liquidation of  debts due to our Government from foreign governments. Those made with Great  Britain, Finland, Hungary Lithuania, and Poland have already been approved  by the Congress. Since the adjournment, further agreements have been  entered into with Belgium, Czechoslovakia, Latvia, Estonia, Italy, and  Rumania. These 11 nations, which have already made settlements, represent  $6,419,528,641 of the original principal of the loans. The principal sums  without interest, still pending, are the debt of France, of $3,340,000,000;  Greece, $15,000,000; Yugoslavia, $.51,000,000; Liberia, $26,000; Russia,  $192,000,000, which those at present in control have undertaken, openly to  repudiate; Nicaragua, $84,000, which is being paid currently; and Austria,  $24,000,000, on which by act of Congress a moratorium of 20 years has been  granted. The only remaining sum is $12,000,000, due from Armenia, which has  now ceased to exist as an independent nation.  
1925-43	1925	In accordance with the settlements made, the amount of principal and  interest which is to be paid to the United States under these agreements  aggregate $15,200,688,253.93. It is obvious that the remaining settlements,  which will undoubtedly be made, will bring this sum up to an amount which  will more than equal the principal due on our present national debt. While  these settlements are very large in the aggregate, it has been felt that  the terms granted were in all cases very generous. They impose no undue  burden and are mutually beneficial in the observance of international faith  and the improvement of international credit.  
1925-44	1925	Every reasonable effort will be made to secure agreements for liquidation  with the remaining countries, whenever they are in such condition that they  can be made. Those which have already been negotiated under the bipartisan  commission established by the Congress have been made only after the most  thoroughgoing and painstaking investigation, continued for a long time  before meeting with the representatives of the countries concerned. It is  believed that they represent in each instance the best that can be done and  the wisest settlement that can be secured. One very important result is the  stabilization of foreign currency, making exchange assist rather than  embarrass our trade. Wherever sacrifices have been made of money, it will  be more than amply returned in better understanding and friendship, while  in so far as these adjustments will contribute to the financial stability  of the debtor countries, to their good order, prosperity, and progress,  they represent hope of improved trade relations and mutual contributions to  the civilization of the world.  
1925-45	1925	ALIEN PROBLEM  
1925-46	1925	Negotiations are progressing among the interested parties in relation to  the final distribution of the assets in the hands of the Alien Property  Custodian. Our Government and people are interested as creditors; the  German Government and people are interested as debtors and owners of the  seized property. Pending the outcome of these negotiations, I do not  recommend any affirmative legislation. For the present we should continue  in possession of this property which we hold as security for the settlement  of claims due to our people and our Government.  
1925-47	1925	IMMIGRATION  
1925-48	1925	While not enough time has elapsed to afford a conclusive demonstration,  such results as have been secured indicate that our immigration law is on  the whole beneficial. It is undoubtedly a protection to the wage earners of  this country. The situation should however, be carefully surveyed, in order  to ascertain whether it is working a needless hardship upon our own  inhabitants. If it deprives them of the comfort and society of those bound  to them by close family ties, such modifications should be adopted as will  afford relief, always in accordance with the principle that our Government  owes its first duty to our own people and that no alien, inhabitant of  another country, has any legal rights whatever under our Constitution and  laws. It is only through treaty, or through residence here that such rights  accrue. But we should not, however, be forgetful of the obligations of a  common humanity.  
1925-49	1925	While our country numbers among its best citizens many of those of foreign  birth, yet those who now enter in violation of our laws by that very act  thereby place themselves in a class of undesirables. Investigation  reveals that any considerable number are coming here in defiance of our  immigration restrictions, it will undoubtedly create the necessity for the  registration of all aliens. We ought to have no prejudice against an alien  because he is an alien. The standard which we apply to our inhabitants is  that of manhood, not place of birth. Restrictive immigration is to a large  degree for economic purposes. It is applied in order that we may not have a  larger annual increment of good people within our borders than we can weave  into our economic fabric in such a way as to supply their needs without  undue injury to ourselves.  
1925-50	1925	NATIONAL DEFENSE  
1925-51	1925	Never before in time of peace has our country maintained so large and  effective a military force as it now has. The Army, Navy, Marine Corps,  National Guard, and Organized Reserves represent a strength of about  558,400 men. These forces are well trained, well equipped, and high in  morale.  
1925-52	1925	A sound selective service act giving broad authority for the mobilization  in time of peril of all the resources of the country, both persons and  materials, is needed to perfect our defense policy in accordance with our  ideals of equality. The provision for more suitable housing to be paid for  out of funds derived from the sale of excess lands, pending before the last  Congress, ought to be brought forward and passed. Reasonable replacements  ought to be made to maintain a sufficient ammunition reserve.  
1925-53	1925	The Navy has the full treaty tonnage of capital ships. Work is going  forward in modernizing the older ones, building aircraft carriers,  additional fleet submarines, and fast scout cruisers, but we are carefully  avoiding anything that might be construed as a competition in armaments  with other nations. The joint Army and Navy maneuvers at Hawaii, followed  by the cruise of a full Battle Fleet to Australia and New Zealand, were  successfully carried out. These demonstrations revealed a most satisfactory  condition of the ships and the men engaged.  
1925-54	1925	Last year at my suggestion the General Board of the Navy made an  investigation and report on the relation of aircraft to warships. As a  result authorizations and appropriations were made for more scout cruisers  and fleet submarines and for completing aircraft carriers and equipping  them with necessary planes. Additional training in aviation was begun at  the Military and Naval Academies. A method of coordination and cooperation  of the Army and Navy and the principal aircraft builders is being  perfected. At the suggestion of the Secretaries of War and Navy I appointed  a special board to make a further study of the problem of aircraft.  
1925-55	1925	The report of the Air Board ought to be reassuring to the country,  gratifying to the service and satisfactory to the Congress. It is  thoroughly complete and represents the mature thought of the best talent in  the country. No radical change in organization of the service seems  necessary. The Departments of War, Navy, and Commerce should each be  provided with an additional assistant secretary, not necessarily with  statutory duties but who would be available under the direction of the  Secretary to give especial attention to air navigation. We must have an air  strength worthy of America. Provision should be made for two additional  brigadier generals for the Army Air Service. Temporary rank corresponding  to their duties should be awarded to active flying officers in both Army  and Navy.  
1925-56	1925	Aviation is of great importance both for national defense and commercial  development. We ought to proceed in its improvement by the necessary  experiment and investigation. Our country is not behind in this art. It has  made records for speed and for the excellence of its planes. It ought to go  on maintaining its manufacturing plants capable of rapid production, giving  national assistance to the la in out of airways, equipping itself with a  moderate number of planes and keeping an air force trained to the highest  efficiency.  
1925-57	1925	While I am a thorough believer in national defense and entirely committed  to the policy of adequate preparation, I am just as thoroughly opposed to  instigating or participating in a policy of competitive armaments. Nor does  preparation mean a policy of militarizing. Our people and industries are  solicitous for the cause of 0111, country, and have great respect for the  Army and Navy and foil the uniform worn by the men who stand ready at all  times for our protection to encounter the dangers and perils necessary to  military service, but all of these activities are to be taken not in behalf  of aggression but in behalf of peace. They are the instruments by which we  undertake to do our part to promote good will and support stability among  all peoples.  
1925-58	1925	VETERANS  
1925-59	1925	If any one desires to estimate the esteem in which the veterans of America  are held by their fellow citizens, it is but necessary to remember that the  current budget calls for an expenditure of about $650,000.000 in their  behalf. This is nearly the amount of the total cost of the National  Government, exclusive of the post office, before we entered the last war.  
1925-60	1925	At the two previous sessions of Congress legislation affecting veterans'  relief was enacted and the law liberalized. This legislation brought into  being a number of new provisions tending more nearly to meet the needs of  our veterans, as well as afford the necessary authority to perfect the  administration of these laws.  
1925-61	1925	Experience with the new legislation so far has clearly demonstrated its  constructive nature. It has increased the benefits received by many and has  made eligible for benefits many others. Direct disbursements to the veteran  or his dependents exceeding $21,000,000 have resulted, which otherwise  would not have been made. The degree of utilization of our hospitals has  increased through making facilities available to the incapacitated veteran  regardless of service origin of the disability. This new legislation also  has brought about a marked improvement of service to the veteran.  
1925-62	1925	The organizations of ex-service men have proposed additional legislative  changes which you will consider, but until the new law and the  modifications made at the last session of Congress are given a more  thorough test further changes in the basic law should be few and made only  after careful though sympathetic consideration.  
1925-63	1925	The principal work now before the Veterans' Bureau is the perfection of its  organization and further improvements in service. Some minor legislative  changes are deemed necessary to enable the bureau to retain that high grade  of professional talent essential in handling the problems of the bureau.  Such changes as tend toward the improvement of service and the carrying  forward to completion of the hospital construction program are recommended  for the consideration of the proper committees of Congress.  
1925-64	1925	With the enormous outlay that is now being made in behalf of the veterans  and their dependents, with a tremendous war debt still requiring great  annual expenditure, with the still high rate of taxation, while every  provision should be made for the relief of the disabled and the necessary  care of dependents, the Congress may well consider whether the financial  condition of the Government is not such that further bounty through the  enlargement of general pensions and other emoluments ought not to be  postponed.  
1925-65	1925	AGRICULTURE  
1925-66	1925	No doubt the position of agriculture as a whole has very much improved  since the depression of three and four years ago. But there are many  localities and many groups of individuals, apparently through no fault of  their own, sometimes due to climatic conditions and sometimes to the  prevailing price of a certain crop, still in a distressing condition. This  is probably temporary, but it is none the less acute. National Government  agencies, the Departments of Agriculture and Commerce, the Farm Loan Board,  the intermediate credit banks, and the Federal Reserve Board are all  cooperating to be of assistance and relief. On the other hand, there are  localities and individuals who have had one of their most prosperous years.  The general price level is fair, but here again there are exceptions both  ways, some items being poor while others are excellent. In spite of a  lessened production the farm income for this year will be about the same as  last year and much above the three preceding years.  
1925-67	1925	Agriculture is a very complex industry. It does not consist of one problem,  but of several. They can not be solved at one stroke. They have to be met  in different ways, and small gains are not to be despised.  
1925-68	1925	It has appeared from all the investigations that I have been able to make  that the farmers as a whole are determined to maintain the independence of  their business. They do not wish to have meddling on the part of the  Government or to be placed under the inevitable restrictions involved in  any system of direct or indirect price-fixing, which would result from  permitting the Government to operate in the agricultural markets. They are  showing a very commendable skill in organizing themselves to transact their  own business through cooperative marketing, which will this year turn over  about $2,500,000,000, or nearly one-fifth of the total agricultural  business. In this they are receiving help from the Government. The  Department of Agriculture should be strengthened in this facility, in order  to be able to respond when these marketing associations want help. While  it ought not to undertake undue regulation, it should be equipped to give  prompt information on crop prospects, supply, demand, current receipts,  imports, exports, and prices.  
1925-69	1925	A bill embodying these principles, which has been drafted under the advice  and with the approval of substantially all the leaders and managers in the  cooperative movement, will be presented to the Congress for its enactment.  Legislation should also be considered to provide for leasing the  unappropriated public domain for grazing purposes and adopting a uniform  policy relative to grazing on the public lands and in the national  forests.  
1925-70	1925	A more intimate relation should be established between agriculture and the  other business activities of the Nation. They are mutually dependent and  can each advance their own prosperity most by advancing the prosperity of  the other. Meantime the Government will continue those activities which  have resulted in an unprecedented amount of legislation and the pouring out  of great sums of money during the last five years. The work for good roads,  better land and water transportation, increased support for agricultural  education, extension of credit facilities through the Farm Loan Boards and  the intermediate credit banks, the encouragement of orderly marketing and a  repression of wasteful speculation, will all be continued.  
1925-71	1925	Following every other depression, after a short period the price of farm  produce has taken and maintained the lead in the advance. This advance had  reached a climax before the war. Everyone will recall the discussion that  went on for four or five years prior to 1914 concerning the high cost of  living. This history is apparently beginning to repeat itself. While  wholesale prices of other commodities have been declining, farm prices have  been increasing. There is every reason to suppose that a new era in  agricultural prosperity lies just before us, which will probably be  unprecedented.  
1925-72	1925	MUSCLE SHOALS  
1925-73	1925	The problem of Muscle Shoals seems to me to have assumed a place all out of  proportion with its real importance. It probably does not represent in  market value much more than a first-class battleship, yet it has been  discussed in the Congress over a period of years and for months at a time.  It ought to be developed for the production of nitrates primarily, and  incidentally for power purposes. This would serve defensive, agricultural,  and industrial purposes. I am in favor of disposing of this property to  meet these purposes. The findings of the special commission will be  transmitted to the Congress for their information. I am convinced that the  best possible disposition can be made by direct authorization of the  Congress. As a means of negotiation I recommend the immediate appointment  of a small joint special committee chosen from the appropriate general  standing committees of the House and Senate to receive bids, which when  made should be reported with recommendations as to acceptance, upon which a  law should be enacted, effecting a sale to the highest bidder who will  agree to carry out these purposes.  
1925-74	1925	If anything were needed to demonstrate the almost utter incapacity of the  National Government to deal directly with an industrial and commercial  problem, it has been provided by our experience with this property. We have  expended vast fortunes, we have taxed everybody, but we are unable to  secure results, which benefit anybody. This property ought, to be  transferred to private management under conditions which will dedicate it  to the public purpose for which it was conceived.  
1925-75	1925	RECLAMATION  
1925-76	1925	The National Government is committed to a policy of reclamation and  irrigation which it desires to establish on a sound basis and continue in  the interest of the localities concerned. Exhaustive studies have recently  been made of Federal reclamation, which have resulted in improving the  projects and adjusting many difficulties. About one third of the projects  is in good financial condition, another third can probably be made  profitable, while the other third is under unfavorable conditions. The  Congress has already provided for a survey which will soon be embodied in a  report. That ought to suggest a method of relief which will make  unnecessary further appeals to the Congress. Unless this can be done,  Federal reclamation will be considerably retarded. With the greatly  increased cost of construction and operation, it has become necessary to  plan in advance, by community organization and selective agriculture,  methods sufficient to repay these increasing outlays.  
1925-77	1925	The human and economic interests of the farmer citizens suggest that the  States should be required to exert some effort and assume some  responsibility, especially in the intimate, detailed, and difficult work of  securing settlers and developing farms which directly profit them, but only  indirectly and remotely can reimburse the Nation. It is believed that the  Federal Government should continue to be the agency for planning and  constructing the great undertakings needed to regulate and bring into use  the rivers the West, many of which are interstate in character, but the  detailed work of creating agricultural communities and a rural civilization  on the land made ready for reclamation ought to be either transferred to  the State in its entirety or made a cooperative effort of the State and  Federal Government.  
1925-78	1925	SHIPPING  
1925-79	1925	The maintenance of a merchant marine is of the utmost importance for  national defense and the service of our commerce. We have a large number of  ships engaged in that service. We also have a surplus supply, costly to  care for, which ought to be sold. All the investigations that have been  made under my direction, and those which have been prosecuted  independently, have reached the conclusion that the fleet should be under  the direct control of a single executive head, while the Shipping Board  should exercise its judicial and regulatory functions in Accordance with  its original conception. The report of Henry G. Dalton, a business man of  broad experience, with a knowledge of shipping, made to me after careful  investigation, will be transmitted for the information of the Congress, the  studies pursued under the direction of the United States Chamber of  Commerce will also be accessible, and added to these will be the report of  the special committee of the House.  
1925-80	1925	I do not advocate the elimination of regional considerations, but it has  become apparent that without centralized executive action the management of  this great business, like the management of any other great business, will  flounder in incapacity and languish under a division of council. A plain  and unmistakable reassertion of this principle of unified control, which I  have always been advised was the intention of the Congress to apply, is  necessary to increase the efficiency of our merchant fleet.  
1925-81	1925	COAL  
1925-82	1925	The perennial conflict in the coal industry is still going on to the great  detriment of the wage earners, the owners, and especially to the public.  With deposits of coal in this country capable of supplying its needs for  hundreds of years, inability to manage and control this great resource for  the benefit of all concerned is very close to a national economic failure.  It has been the subject of repeated investigation and reiterated  recommendation. Yet the industry seems never to have accepted modern  methods of adjusting differences between employers and employees. The  industry could serve the public much better and become subject to a much  more effective method of control if regional consolidations and more  freedom in the formation of marketing associations, under the supervision  of the Department of Commerce, were permitted.  
1925-83	1925	At the present time the National Government has little or no authority to  deal with this vital necessity of the life of the country. It has permitted  itself to remain so powerless that its only attitude must be humble  supplication. Authority should be lodged with the President and the  Departments of Commerce and Labor, giving them power to deal with an  emergency. They should be able to appoint temporary boards with authority  to call for witnesses and documents, conciliate differences, encourage  arbitration, and in case of threatened scarcity exercise control over  distribution. Making the facts public under these circumstances through a  statement from an authoritative source would be of great public benefit.  The report of the last coal commission should be brought forward,  reconsidered, and acted upon.  
1925-84	1925	PROHIBITION  
1925-85	1925	Under the orderly processes of our fundamental institutions the  Constitution was lately amended providing for national prohibition. The  Congress passed an act for its enforcement, and similar acts have been  provided by most of the States. It is the law of the land. It is the duty  of all who come under its, jurisdiction to observe the spirit of that law,  and it is the duty of the Department of Justice and the Treasury Department  to enforce it. Action to prevent smuggling, illegal transportation in  interstate commerce, abuse in the use of permits, and existence of sources  of supply for illegal traffic is almost entirely imposed upon the Federal  Government.  
1925-86	1925	Through treaties with foreign governments and increased activities of the  Coast Guard, revenue agents, district attorneys and enforcement agents  effort is being made to prevent these violations. But the Constitution also  puts a concurrent duty on the States. We need their active and energetic  cooperation, the vigilant action of their police, and the jurisdiction of  their courts to assist in enforcement. I request of the people observance,  of the public officers continuing efforts for enforcement, and of the  Congress favorable action on the budget recommendation for the prosecution  of this work.  
1925-87	1925	WATERWAY DEVELOPMENT  
1925-88	1925	For many years our country has been employed in plans and M for the  development of our intracoastal and inland waterways. This work along our  coast is an important adjunct to our commerce. It will be carried on,  together with the further opening up of our harbors, as our resources  permit. The Government made an agreement during the war to take over the  Cape Cod Canal, under which the owners made valuable concessions. This  pledged faith of the Government ought to be redeemed.  
1925-89	1925	Two other main fields are under consideration. One is the Great Lakes and  St. Lawrence, including the Erie Canal. This includes stabilizing the lake  level, and is both a waterway and power project. A joint commission of the  United States and Canada is working on plans and surveys which will not be  completed until next April. No final determination can be made, apparently,  except under treaty as to the participation of both countries. The other is  the Mississippi River stem. This is almost entirely devoted to navigation.  Work on the Ohio River will be completed in about three years. A modern  channel connecting Chicago, New Orleans, Kansas City, and Pittsburgh should  be laid out and work on the tributaries prosecuted. Some work is being done  of a preparatory nature along the Missouri, and large expenditures are  being made yearly in the lower reaches of the Mississippi and its  tributaries which contribute both to flood control and navigation.  Preliminary measures are being taken on the Colorado River project, which  is exceedingly important for flood control, irrigation, power development,  and water supply to the area concerned. It would seem to be very doubtful,  however, whether it is practical to secure affirmative action of the  Congress, except under a Joint agreement of the several States.  
1925-90	1925	The Government has already expended large sums upon scientific research and  engineering investigation in promotion of this Colorado River project. The  actual progress has been retarded for many years by differences among the  seven States in the basin over their relative water rights and among  different groups as to methods. In an attempt to settle the primary  difficulty of the water rights, Congress authorized the Colorado River  Commission which agreed on November 24, 1922, upon an interstate compact to  settle these rights, subject to the ratification of the State legislatures  and Congress. All seven States except Arizona at one time ratified, the  Arizona Legislature making certain reservations which failed to meet the  approval of the governor. Subsequently an attempt was made to establish the  compact upon a six-State basis, but in this case California imposed  reservations. There appears to be no division of opinion upon the major  principles of the compact, but difficulty in separating contentions to  methods of development from the discussion of it. It is imperative that  flood control be undertaken for California and Arizona. preparation made  for irrigation, for power, and for domestic water.  
1925-91	1925	Some or all of these questions are combined in every proposed development.  The Federal Government is interested in some of these phases, State  governments and municipalities and irrigation districts in others, and  private corporations in still others. Because of all this difference of  view it is most desirable that Congress should consider the creation of  some agency that will be able to determine methods of improvement solely  upon economic and engineering facts, that would be authorized to negotiate  and settle, subject to the approval of Congress, the participation, rights,  and obligations of each group in any particular works. Only by some such  method can early construction be secured.  
1925-92	1925	WATER POWER  
1925-93	1925	Along with the development of navigation should go every possible  encouragement for the development of our water power. While steam still  plays a dominant part, this is more and more becoming an era of  electricity. Once installed, the cost is moderate, has not tended greatly  to increase, and is entirely free from the unavoidable dirt and  disagreeable features attendant upon the burning of coal. Every facility  should be extended for the connection of the various units into a  superpower plant, capable at all times of a current increasing uniformity  over the entire system.  
1925-94	1925	RAILROADS  
1925-95	1925	The railroads throughout the country are in a fair state of prosperity.  Their service is good and their supply of cars is abundant. Their condition  would be improved and the public better served by a system of  consolidations. I recommend that the Congress authorize such consolidations  tinder the supervision of the Interstate Commerce Commission, with power to  approve or disapprove when proposed parts are excluded or new parts added.  I am informed that the railroad managers and their employees have reached a  substantial agreement as to what legislation is necessary to regulate and  improve their relationship. Whenever they bring forward such proposals,  which seem sufficient also to protect the interests of the public, they  should be enacted into law.  
1925-96	1925	It is gratifying to report that both the railroad managers and railroad  employees are providing boards for the mutual adjustment of differences in  harmony with the principles of conference, conciliation, and arbitration.  The solution of their problems ought to be an example to all other  industries. Those who ask the protections of civilization should be ready  to use the methods of civilization.  
1925-97	1925	A strike in modern industry has many of the aspects of war in the modern  world. It injures labor and it injures capital. If the industry involved is  a basic one, it reduces the necessary economic surplus and, increasing the  cost of living, it injures the economic welfare and general comfort of the  whole people. It also involves a deeper cost. It tends to embitter and  divide the community into warring classes and thus weakens the unity and  power of our national life.  
1925-98	1925	Labor can make no permanent gains at the cost of the general welfare. All  the victories won by organized labor in the past generation have been won  through the support of public opinion. The manifest inclination of the  managers and employees of the railroads to adopt a policy of action in  harmony with these principles marks a new epoch in our industrial life.  
1925-99	1925	OUTLYING POSSESSIONS  
1925-100	1925	The time has come for careful investigation of the expenditures and success  of the laws by which we have undertaken to administer our outlying  possessions. A very large amount of money is being expended for  administration in Alaska. It appears so far out of proportion to the number  of inhabitants and the amount of production as to indicate cause for  thorough investigation. Likewise consideration should be given to the  experience under the law which governs the Philippines. From such reports  as reach me there are indications that more authority should be given to  the Governor General, so that he will not be so dependent upon the local  legislative body to render effective our efforts to set an example of the,  sound administration and good government, which is so necessary for the  preparation of the Philippine people for self-government under ultimate  independence. If they are to be trained in these arts, it is our duty to  provide for them the best that there is.  
1925-101	1925	RETIREMENT OF JUDGES  
1925-102	1925	The act of March 3, 1911, ought to be amended so that the term of years of  service of judges of any court of the United States requisite for  retirement with pay shall be computed to include not only continuous but  aggregate service.  
1925-103	1925	MOTHERS' AID  
1925-104	1925	The Government ought always to be alert on the side of the humanities. It  Ought to encourage provisions for economic justice for the defenseless. It  ought to extend its relief through its national and local agencies, as may  be appropriate in each case, to the suffering and the needy. It ought to be  charitable.  
1925-105	1925	Although more than 40 of our States have enacted measures in aid of  motherhood, the District of Columbia is still without such a law. A  carefully considered bill will be presented, which ought to have most  thoughtful consideration in order that the Congress may adopt a measure  which will be hereafter a model for all parts of the Union.  
1925-106	1925	CIVIL SERVICE  
1925-107	1925	In 1883 the Congress passed the civil service act, which from a modest  beginning of 14,000 employees has grown until there are now 425,000 in the  classified service. This has removed the clerical force of the Nation from  the wasteful effects of the spoils system and made it more stable and  efficient. The time has come to consider classifying all postmasters,  collectors of customs, collectors of internal revenue, and prohibition  agents, by an act covering in those at present in office, except when  otherwise provided by Executive order.  
1925-108	1925	The necessary statistics are now being gathered to form the basis of a  valuation of the civil service retirement fund based on current conditions  of the service. It is confidently expected that this valuation will be  completed in time to be made available to the Congress during the present  session. It will afford definite knowledge of existing, and future  liabilities under the present law and determination OF liabilities under  any proposed change in the present law. We should have this information  before creating further obligations for retirement annuities which will  become liabilities to be met in the future from the money of the taxpayer.  
1925-109	1925	The classification act of 1923, with the subsequent legislative action  providing for adjustment of the compensation of field service positions,  has operated materially to improve employment conditions in the Federal  service. The administration of the act is in the hands of an impartial  board, functioning without the necessity of a direct appropriation. It  would be inadvisable at this time to place in other hands the  administration of this act.  
1925-110	1925	FEDERAL TRADE COMMISSION  
1925-111	1925	The proper function of the Federal Trade Commission is to supervise and  correct those practices in commerce which are detrimental to fair  competition. In this it performs a useful function and should be continued  and supported. It was designed also to be a help to honest business. In my  message to the Sixty-eighth Congress I recommended that changes in the  procedure then existing be made. Since then the commission by its own  action has reformed its rules, giving greater speed and economy in the  disposal of its cases and full opportunity for those accused to be heard.  These changes are improvements and, if necessary, provision should be made  for their permanency.  
1925-112	1925	REORGANIZATION  
1925-113	1925	No final action has yet been taken on the measure providing for the  reorganization of the various departments. I therefore suggest that this  measure, which will be of great benefit to the efficient and economical  administration of the business of the Government, be brought forward and  passed.  
1925-114	1925	THE NEGRO  
1925-115	1925	Nearly one-tenth of our population consists of the Negro race. The progress  which they have made in all the arts of civilization in the last 60 years  is almost beyond belief. Our country has no more loyal citizens. But they  do still need sympathy, kindness, and helpfulness. They need reassurance  that the requirements of the Government and society to deal out to them  even-handed justice will be met. They should be protected from all violence  and supported in the peaceable enjoyment of the fruits of their labor.  Those who do violence to them should be punished for their crimes. No other  course of action is worthy of the American people.  
1925-116	1925	Our country has many elements in its population, many different modes of  thinking and living, all of which are striving in their own way to be loyal  to the high ideals worthy of the crown of American citizenship. It is  fundamental of our institutions that they seek to guarantee to all our  inhabitants the right to live their own lives under the protection of the  public law. This does not include any license to injure others materially,  physically, morally, to Incite revolution, or to violate the established  customs which have long had the sanction of enlightened society.  
1925-117	1925	But it does mean the full right to liberty and equality before the law  without distinction of race or creed. This condition can not be granted to  others, or enjoyed by ourselves, except by the application of the principle  of broadest tolerance. Bigotry is only another name for slavery. It reduces  to serfdom not only those against whom it is directed, but also those who  seek to apply it. An enlarged freedom can only be secured by the  application of the golden rule. No other utterance ever presented such a  practical rule of life.  
1925-118	1925	CONCLUSION  
1925-119	1925	It is apparent that we are reaching into an era of great general  prosperity. It will continue only so long as we shall use it properly.  After all, there is but a fixed quantity of wealth in this country at any  fixed time. The only way that we can all secure more of it is to create  more. The element of time enters into production, If the people have  sufficient moderation and contentment to be willing to improve their  condition by the process of enlarging production, eliminating waste, and  distributing equitably, a prosperity almost without limit lies before its.  If the people are to be dominated by selfishness, seeking immediate riches  by nonproductive speculation and by wasteful quarreling over the returns  from industry, they will be confronted by the inevitable results of  depression and privation. If they will continue industrious and thrifty,  contented with fair wages and moderate profits, and the returns which  accrue from the development of oar natural resources, our prosperity will  extend itself indefinitely.  
1925-120	1925	In all your deliberations you should remember that the purpose of  legislation is to translate principles into action. It is an effort to have  our country be better by doing better. Because the thoughts and ways of  people are firmly fixed and not easily changed, the field within which  immediate improvement can be secured is very narrow. Legislation can  provide opportunity. Whether it is taken advantage of or not depends upon  the people themselves. The Government of the United States has been created  by the people. It is solely responsible to them. It will be most successful  if it is conducted solely for their benefit. All its efforts would be of  little avail unless they brought more justice, more enlightenment, more  happiness and prosperity into the home. This means an opportunity to  observe religion, secure education, and earn a living under a reign of law  and order. It is the growth and improvement of the material and spiritual  life of the Nation. We shall not be able to gain these ends merely by our  own action. If they come at all, it will be because we have been willing to  work in harmony with the abiding purpose of a Divine Providence.  
1926-1	1926	Members of the Congress:  
1926-2	1926	In reporting to the Congress the state of the Union, I find it impossible  to characterize it other than one of general peace and prosperity. In some  quarters our diplomacy is vexed with difficult and as yet unsolved  problems, but nowhere are we met with armed conflict. If some occupations  and areas are not flourishing, in none does there remain any acute chronic  depression. What the country requires is not so much new policies as a  steady continuation of those which are already being crowned with such  abundant success. It can not be too often repeated that in common with all  the world we are engaged in liquidating the war.  
1926-3	1926	In the present short session no great amount of new legislation is  possible, but in order to comprehend what is most desirable some survey of  our general situation is necessary. A large amount of time is consumed in  the passage of appropriation bills. If each Congress in its opening session  would make appropriations to continue for two years, very much time would  be saved which could either be devoted to a consideration of the general  needs of the country or would result in decreasing the work of legislation.  ECONOMY  
1926-4	1926	Our present state of prosperity has been greatly promoted by three  important causes, one of which is economy, resulting in reduction and  reform in national taxation. Another is the elimination of many kinds of  waste. The third is a general raising of the standards of efficiency. This  combination has brought the perfectly astonishing result of a reduction in  the index price of commodities and an increase in the index rate of wages.  We have secured a lowering of the cost to produce and a raising of the  ability to consume. Prosperity resulting from these causes rests on the  securest of all foundations. It gathers strength from its own progress.  
1926-5	1926	In promoting this progress the chief part which the National Government  plays lies in the field of economy. Whatever doubts may have been  entertained as to the necessity of this policy and the beneficial results  which would accrue from it to all the people of the Nation, its wisdom must  now be considered thoroughly demonstrated. It may not have appeared to be a  novel or perhaps brilliant conception, but it has turned out to be  preeminently sound. It has not failed to work. It has surely brought  results. It does not have to be excused as a temporary expedient adopted as  the lesser evil to remedy some abuse, it is not a palliative seeking to  treat symptoms, but a major operation for the, eradication at the source of  a large number of social diseases.  
1926-6	1926	Nothing is easier than the expenditure of public money. It does not appear  to belong to anybody. The temptation is overwhelming to bestow it on  somebody. But the results of extravagance are ruinous. The property of the  country, like the freedom of the country, belongs to the people of the  country. They have not empowered their Government to take a dollar of it  except for a necessary public purpose. But if the Constitution conferred  such right, sound economics would forbid it. Nothing is more, destructive  of the progress of the Nation than government extravagance. It means an  increase in the burden of taxation, dissipation of the returns from  enterprise, a decrease in the real value of wages, with ultimate stagnation  and decay. The whole theory of our institutions is based on the liberty and  independence of the individual. He is dependent on himself for support and  therefore entitled to the rewards of his own industry. He is not to be  deprived of what he earns that others may be benefited by what they do not  earn. What he saves through his private effort is not to be wasted by  Government extravagance.  
1926-7	1926	Our national activities have become so vast that it is necessary to  scrutinize each item of public expenditure if we are to apply the principle  of economy. At the last session we made an immediate increase in the annual  budget of more than $100,000,000 in benefits conferred on the veterans of  three wars, public buildings, and river and harbor improvement. Many  projects are being broached requiring further large outlays. I am convinced  that it would be greatly for the welfare of the country if we avoid at the  present session all commitments except those of the most pressing nature.  From a reduction of the debt and taxes will accrue a wider benefit to all  the people of this country than from embarking on any new enterprise. When  our war debt is decreased we shall have resources for expansion. Until that  is accomplished we should confine ourselves to expenditures of the most  urgent necessity.  
1926-8	1926	The Department of Commerce has performed a most important function in  making plans and securing support of all kinds of national enterprise for  the elimination of waste. Efficiency has been greatly promoted through good  management and the constantly increasing cooperation of the wage earners  throughout the whole realm of private business. It is my opinion that this  whole development has been predicated on the foundation of a protective  tariff.  
1926-9	1926	TAX REDUCTION  
1926-10	1926	As a result of economy of administration by the Executive and of  appropriation by the Congress, the end of this fiscal year will leave a  surplus in the Treasury estimated at $383,000,000. Unless otherwise  ordered, such surplus is used for the retirement of the war debt. A bond  which can be retired today for 100 cents will cost the people 104 1/4  cents to retire a year from now. While I favor a speedy reduction of the  debt as already required by law and in accordance with the promises made to  the holders of our Liberty bonds when they were issued, there is no reason  why a balanced portion of surplus revenue should not be applied to a  reduction of taxation. It can not be repeated too often that the enormous  revenues of this Nation could not be collected without becoming a charge on  all the people whether or not they directly pay taxes. Everyone who is  paying or the bare necessities of fool and shelter and clothing, without  considering the better things of life, is indirectly paying a national tax.  The nearly 20,000,000 owners of securities, the additional scores of  millions of holders of insurance policies and depositors in savings banks,  are all paying a national tax. Millions of individuals and corporations are  making a direct contribution to the National Treasury which runs from 11/2  to 25 per cent of their income, besides a number of special requirements,  like automobile and admission taxes. Whenever the state of the Treasury  will permit, I believe in a reduction of taxation. I think the taxpayers  are entitled to it. But I am not advocating tax reduction merely for the  benefit of the taxpayer; I am advocating it for the benefit of the  country.  
1926-11	1926	If it appeared feasible, I should welcome permanent tax reduction at this  time. The estimated surplus, however, for June 30, 1928, is not much larger  than is required in a going business of nearly $4,000,000,000. We have had  but a few months' experience under the present revenue act and shall need  to know what is developed by the returns of income produced under it, which  are not required t o be made until about the time this session terminates,  and what the economic probabilities of the country are in the latter part  of 1927, before we can reach any justifiable conclusion as to permanent tax  reduction. Moreover the present surplus results from many nonrecurrent  items. Meantime, it is possible to grant some real relief by a simple  measure making reductions in the payments which accrue on the 15th of March  and June, 1927. I am very strongly of the conviction that this is so much a  purely business matter that it ought not to be dealt with in a partisan  spirit. The Congress has already set the notable example of treating tax  problems without much reference to party, which might well be continued.  What I desire to advocate most earnestly is relief for the country from  unnecessary tax burdens. We can not secure that if we stop to engage in a  partisan controversy. As I do not think any change in the special taxes, or  tiny permanent reduction is practical, I therefore urge both parties of the  House Ways and Means Committee to agree on a bill granting the temporary  relief which I have indicated. Such a reduction would directly affect  millions of taxpayers, release large sums for investment in new enterprise,  stimulating industrial production and agricultural consumption, and  indirectly benefiting every family in the whole country. These are my  convictions stated with full knowledge that it is for the Congress to  decide whether they judge it best to make such a reduction or leave the  surplus for the present year to be applied to retirement of the war debt.  That also is eventually tax reduction.  
1926-12	1926	PROTECTIVE TARIFF  
1926-13	1926	It is estimated that customs receipts for the present fiscal year will  exceed $615,000,000, the largest which were ever secured from that source.  The value of our imports for the last fiscal year was $4,466,000,000, an  increase of more than 71 per cent since the present tariff law went into  effect. Of these imports about 65 per cent, or, roughly, $2,900,000,000,  came in free of duty, which means that the United States affords a  duty-free market to other countries almost equal in value to the total  imports of Germany and greatly exceeding the total imports of France. We  have admitted a greater volume of free imports than any other country  except England.  
1926-14	1926	We are, therefore, levying duties on about $1,550,000,000 of imports.  Nearly half of this, or $700,000,000, is subject to duties for the  protection of agriculture and have their origin in countries other than  Europe. They substantially increased the prices received by our farmers for  their produce. About $300,000.000 more is represented by luxuries such as  costly rugs, furs, precious stones, etc. This leaves only about  $550,000,000 of our imports under a schedule of duties which is in general  under consideration when there is discussion of lowering the tariff. While  the duties on this small portion, representing only about 12 per cent of  our imports, undoubtedly represent the difference between a fair degree of  prosperity or marked depression to many of our industries and the  difference between good pay and steady work or wide unemployment to many of  our wage earners, it is impossible to conceive how other countries or our  own importers could be greatly benefited if these duties are reduced. Those  who are starting an agitation for a reduction of tariff duties, partly at  least for the benefit of those to whom money has been lent abroad, ought to  know that there does not seem to be a very large field within the area of  our imports in which probable reductions would be advantageous to foreign  goods. Those who wish to benefit foreign producers are much more likely to  secure that result by continuing the present enormous purchasing power  which comes from our prosperity that increased our imports over 71  per cent in four years than from any advantages that are likely to accrue  from a general tariff reduction.  
1926-15	1926	AGRICULTURE  
1926-16	1926	The important place which agriculture holds in the economic and social life  of the Nation can not be overestimated. The National Government is  justified in putting forth every effort to make the open country a  desirable place to live. No condition meets this requirement which fails to  supply a fair return on labor expended and capital invested. While some  localities and some particular crops furnish exceptions, in general  agriculture is continuing to make progress in recovering from the  depression of 1921 and 1922. Animal products and food products are in a  more encouraging position, while cotton, due to the high prices of past  years supplemented by ideal weather conditions, has been stimulated to a  point of temporary over production. Acting on the request of the cotton  growing interests, appointed a committee to assist in carrying out their  plans. As it result of this cooperation sufficient funds have been pledged  to finance the storage and carrying of 4,000,000 bales of cotton. Whether  those who own the cotton are willing to put a part of their stock into this  plan depends on themselves. The Federal Government has cooperated in  providing ample facilities. No method of meeting the situation would be  adequate which does not contemplate a reduction of about one-third in the  acreage for the coming year. The responsibility for making the plan  effective lies with those who own and finance cotton and cotton lands.  
1926-17	1926	The Department of Agriculture estimates the net income of agriculture for  the year 1920-21 at only $375,000,000; for 1924-25, $2,656,000,000; for  1925-26, $2,757,000,000. This increase has been brought about in part by  the method already referred to, of Federal tax reduction, the elimination  of waste, and increased efficiency in industry. The wide gap that existed a  few years ago between the index price of agricultural products and the  index price of other products has been gradually closing up, though the  recent depression in cotton has somewhat enlarged it. Agriculture had on  the whole been going higher while industry had been growing lower.  Industrial and commercial activities, being carried on for the most part by  corporations, are taxed at a much higher rate than farming, which is  carried on by individuals. This will inevitably make industrial commodity  costs high while war taxation lasts. It is because of this circumstance  that national tax reduction has a very large indirect benefit upon the  farmer, though it can not relieve him from the very great burden of the  local taxes which he pays directly. We have practically relieved the farmer  of any Federal income tax.  
1926-18	1926	There is agreement on all sides that some portions of our agricultural  industry have lagged behind other industries in recovery from the war and  that further improvement in methods of marketing of agricultural products  is most desirable. There is belief also that the Federal Government can  further contribute to these ends beyond the many helpful measures taken  during the last five years through the different acts of Congress for  advancing the interests of the farmers.  
1926-19	1926	The packers and stockyards act,  
1926-20	1926	Establishing of the intermediate credit banks for agricultural purposes,  
1926-21	1926	The Purnell Act for agricultural research,  
1926-22	1926	The Capper-Volstead Cooperative Marketing Act,  
1926-23	1926	The cooperative marketing act of 1926,  
1926-24	1926	Amendments to the warehousing act,  
1926-25	1926	The enlargement of the activities of the Department of Agriculture,  
1926-26	1926	Enlargement of the scope of loans by the Farm Loan Board,  
1926-27	1926	The tariff on agricultural products,  
1926-28	1926	The large Federal expenditure in improvement of waterways and highways,  
1926-29	1926	The reduction of Federal taxes, in all comprise a great series of  governmental actions in the advancement of the special interest of  agriculture.  
1926-30	1926	In determination of what further measures may be undertaken it seems to me  there are certain pitfalls which must be avoided and our test in avoiding  them should be to avoid disaster to the farmer himself.  
1926-31	1926	Acting upon my recommendation, the Congress has ordered the interstate  Commerce Commission to investigate the freight-rate structure, directing  that such changes shall be made in freight rates as will promote freedom of  movement of agricultural products. Railroad consolidation which I am  advocating would also result in a situation where rates could be made more  advantageous for farm produce, as has recently been done in the revision of  rates on fertilizers in the South. Additional benefit will accrue from the  development of our inland waterways. The Mississippi River system carries a  commerce of over 50,000,000 tons at a saving of nearly $18,000,000  annually. The Inland Waterways Corporation operates boats on 2,500 miles of  navigable streams and through its relation with 165 railroads carries  freight into and out of 45 States of the Union. During the past six months  it has handled over 1,000,000 bushels of grain monthly and by its lower  freight rates has raised the price of such grain to the farmer probably  21/2 cents to 3 cents a bushel. The highway system on which the Federal  Government expends about $85,000,000 a year is of vital importance to the  rural regions.  
1926-32	1926	The advantages to be derived from a more comprehensive and less expensive  system of transportation for agriculture ought to be supplemented by  provision for an adequate supply of fertilizer at a lower cost than it is  at present obtainable. This advantage we are attempting to secure by the  proposed development at Muscle Shoals, and there are promising experiments  being made in synthetic chemistry for the production of nitrates.  
1926-33	1926	A survey should be made of the relation of Government grazing lands to the  livestock industry. Additional legislation is desirable more definitely to  establish the place of grazing in the administration of the national  forests, properly subordinated to their functions of producing timber and  conserving the water supply. Over 180,000,000 acres of grazing lands are  still pastured as commons in the public domain with little or no  regulation. This has made their use so uncertain that it has contributed  greatly to the instability of the livestock industry. Very little of this  land is suited to settlement or private ownership. Some plan ought to be  adopted for its use in grazing, corresponding broadly to that already  successfully applied to the national forests.  
1926-34	1926	The development of sound and strong cooperative associations is of  fundamental importance to our agriculture. It is encouraging to note,  therefore, that a vigorous and healthy growth in the cooperative movement  is continuing. Cooperative associations reporting to the Department of  Agriculture at the end of 1925 had on their membership rolls a total of  2,700,000 producers. Their total business in 1925 amounted to approximately  $2,400,000,000, compared with $635,800,000 in 1915. Legislative action to  assist cooperative associations and supplement their efforts was passed at  the last session of Congress. Important credit measures were also provided  by Congress in 1923 which have been of inestimable value to the cooperative  associations. Although the Federal credit agencies have served agriculture  well, I think it may be possible to broaden and strengthen the service of  these institutions.  
1926-35	1926	Attention is again directed to the surplus problem of agriculture by the  present cotton situation. Surpluses often affect prices of various farm  commodities in a disastrous manner, and the problem urgently demands a  solution. Discussions both in and out of Congress during the past few years  have given us a better understanding of the subject, and it is my hope that  out of the various proposals made the basis will be found for a sound and  effective solution upon which agreement can be reached. In my opinion  cooperative marketing associations will be important aids to the ultimate  solution of the problem. It may well be, however, that additional measures  will be needed to supplement their efforts. I believe all will agree that  such measures should not conflict with the best interests of the  cooperatives, but rather assist and strengthen them. In working out this  problem to any sound conclusion it is necessary to avoid putting the  Government into the business of production or marketing or attempting to  enact legislation for the purpose of price fixing. The farmer does not  favor any attempted remedies that partake of these elements. He has a  sincere and candid desire for assistance. If matched by an equally sincere  and candid consideration of the different remedies proposed a sound  measure of relief ought to result. It is unfortunate that no general  agreement has been reached by the various agricultural interests upon any  of the proposed remedies. Out of the discussion of various proposals which  can be had before the Committees of Agriculture some measure ought to be  perfected which would be generally satisfactory.  
1926-36	1926	Due to the emergency arising from a heavy tropical storm in southern  Florida, I authorized the Secretary of Agriculture to use certain funds in  anticipation of legislation to enable the farmers in that region to plant  their crops. The department will present a bill ratifying the loans which  were made for this purpose.  
1926-37	1926	Federal legislation has been adopted authorizing the cooperation of the  Government with States and private owners in the protection of forest lands  from fire. This preventive measure is of such great importance that I have  recommended for it an increased appropriation.  
1926-38	1926	Another preventive measure of great economic and sanitary importance is the  eradication of tuberculosis in cattle. Active work is now in progress in  one-fourth of the counties of the United States to secure this result. Over  12,000,000 cattle have been under treatment, and the average degree of  infection has fallen from 4.9 per cent to 2.8 per cent. he Federal  Government is making substantial expenditures for this purpose.  
1926-39	1926	Serious damage is threatened to the corn crop by the European corn borer.  Since 1917 it has spread from eastern New England westward into Indiana and  now covers about 100,000 square miles. It is one of the most formidable  pests because it spreads rapidly and is exceedingly difficult of control.  It has assumed a menace that is of national magnitude and warrants the  Federal Government in extending its cooperation to the State and local  agencies which are attempting to prevent its further spread and secure its  eradication.  
1926-40	1926	The whole question of agriculture needs most careful consideration. In the  past few years the Government has given this subject more attention than  any other and has held more consultations in relation to it than on any  other subject. While the Government is not to be blamed for failure to  perform the impossible, the agricultural regions are entitled to know that  they have its constant solicitude and sympathy. Many of the farmers are  burdened with debts and taxes which they are unable to carry. We are  expending in this country many millions of dollars each year to increase  farm production. We ought now to put more emphasis on the question of farm  marketing. If a sound solution of a permanent nature can be found for this  problem, the Congress ought not to hesitate to adopt it.  
1926-41	1926	DEVELOPMENT OF WATER RESOURCES  
1926-42	1926	In previous messages I have referred to the national importance of the  proper development of our water resources. The great projects of extension  of the Mississippi system, the protection an development of the lower  Colorado River, are before Congress, and I have previously commented upon  them. I favor the necessary legislation to expedite these projects.  Engineering studies are being made for connecting the Great Lakes with the  North Atlantic either through an all-American canal or by way of the St.  Lawrence River. These reports will undoubtedly be before the Congress  during its present session. It is unnecessary to dwell upon the great  importance of such a waterway not only to our mid-continental basin but to  the commerce and development of practically the whole Nation. Our river and  harbor improvement should be continued in accordance with the present  policy. Expenditure of this character is compatible with economy; it is in  the nature of capital investment. Work should proceed on the basic trunk  lines if this work is to be a success. If the country will be content to be  moderate and patient and permit improvements to be made where they will do  the greatest general good, rather than insisting on expenditures at this  time on secondary projects, our internal Waterways can be made a success.  If proposes legislation results in a gross manifestation of local  jealousies and selfishness, this program can not be carried out. Ultimately  we can take care of extensions, but our first effort should be confined to  the main arteries.  
1926-43	1926	Our inland commerce has been put to great inconvenience and expense by  reason of the lowering of the water level of the Great Lakes. This is an  international problem on which competent engineers are making reports. Out  of their study it is expected that a feasible method will be developed for  raising the level to provide relief for our commerce and supply water for  drainage. Whenever a practical plan is presented it ought to be speedily  adopted.  
1926-44	1926	RECLAMATION  
1926-45	1926	It is increasingly evident that the Federal Government must in the future  take a leading part in the impounding of water for conservation with  incidental power for the development of the irrigable lands of the and  region. The unused waters of the West are found mainly in large rivers.  Works to store and distribute these have such magnitude and cost that they  are not attractive to private enterprise. Water is the irreplaceable  natural resource. Its precipitation can not be increased. Its storage on  the higher reaches of streams, to meet growing needs, to be used repeatedly  as it flows toward the seas, is a practical and prudent business policy.  
1926-46	1926	The United States promises to follow the course of older irrigation  countries, where recent important irrigation developments have been carried  out as national undertakings. It is gratifying, therefore, that conditions  on Federal reclamation projects have become satisfactory. The gross value  of crop, grown with water from project works increased from $110,000,000  in 1924 to $131,000,000 in 1925. The adjustments made last year by Congress  relieved irrigators from paying construction costs on unprofitable land,  and by so doing inspired new hope and confidence in ability to meet the  payments required. Construction payments by water users last year were the  largest in the history of the bureau.  
1926-47	1926	The anticipated reclamation fund will be fully absorbed for a number of  years in the completion of old projects and the construction of projects  inaugurated in the past three years. We should, however, continue to  investigate and study the possibilities of a carefully planned development  of promising projects, logically of governmental concern because of their  physical magnitude, immense cost, and the interstate and international  problems involved. Only in this way may we be fully prepared to meet  intelligently the needs of our fast-growing population in the years to  come.  
1926-48	1926	TRANSPORTATION  
1926-49	1926	It would be difficult to conceive of any modern activity which contributes  more to the necessities and conveniences of life than transportation.  Without it our present agricultural production and practically all of our  commerce would be completely prostrated. One of the large contributing  causes to the present highly satisfactory state of our economic condition  is the prompt and dependable service, surpassing all our previous records,  rendered by the railroads. This power has been fostered by the spirit of  cooperation between Federal and State regulatory commissions. To render  this service more efficient and effective and to promote a more scientific  regulation, the process of valuing railroad properties should be simplified  and the primary valuations should be completed as rapidly as possible. The  problem of rate reduction would be much simplified by a process of railroad  consolidations. This principle has already been adopted as Federal law.  Experience has shown that a more effective method must be provided. Studies  have already been made and legislation introduced seeking to promote this  end. It would be of great advantage if it could be taken up at once and  speedily enacted. The railroad systems of the country and the convenience  of all the people are waiting on this important decision.  
1926-50	1926	MERCHANT MARINE  
1926-51	1926	It is axiomatic that no agricultural and industrial country can get the  full benefit of its own advantages without a merchant marine. We have been  proceeding under the act of Congress that contemplates the establishment of  trade routes to be ultimately transferred to private ownership and  operation. Due to temporary conditions abroad and at home we have a large  demand just now for certain types of freight vessels. Some suggestion has  been made for new construction. I do not feel that we are yet warranted in  entering, that field. Such ships as we might build could not be sold after  they are launched for anywhere near what they would cost. We have expended  over $250,000,000 out of the public Treasury in recent years to make up the  losses of operation, not counting the depreciation or any cost whatever of  our capital investment. The great need of our merchant marine is not for  more ships but for more freight.  
1926-52	1926	Our merchants are altogether too indifferent about using American ships for  the transportation of goods which they send abroad or bring home. Some of  our vessels necessarily need repairs, which should be made. I do not  believe that the operation of our fleet is as economical and efficient as  it could be made if placed under a single responsible head, leaving the  Shipping Board free to deal with general matters of policy and regulation.  
1926-53	1926	RADIO LEGISLATION  
1926-54	1926	The Department of Commerce has for some years urgently presented the  necessity for further legislation in order to protect radio listeners from  interference between broadcasting stations and to carry out other  regulatory functions. Both branches of Congress at the last session passed  enactments intended to effect such regulation, but the two bills yet remain  to be brought into agreement and final passage.  
1926-55	1926	Due to decisions of the courts, the authority of the department under the  law of 1912 has broken down; many more stations have been operating than  can be accommodated within the limited number of wave lengths available;  further stations are in course of construction; many stations have departed  from the scheme of allocation set down by the department, and the whole  service of this most important public function has drifted into such chaos  as seems likely, if not remedied, to destroy its great value. I most  urgently recommend that this legislation should be speedily enacted.  
1926-56	1926	I do not believe it is desirable to set up further independent agencies in  the Government. Rather I believe it advisable to entrust the important  functions of deciding who shall exercise the privilege of radio  transmission and under what conditions, the assigning of wave lengths and  determination of power, to a board to be assembled whenever action on such  questions becomes necessary. There should be right of appeal to the courts  from the decisions of such board. The administration of the decisions of  the board and the other features of regulation and promotion of radio in  the public interest, together with scientific research, should remain in  the Department of Commerce. Such an arrangement makes for more expert, more  efficient, and more economical administration that an independent agency or  board, whose duties, after initial stages, require but little attention, in  which administrative functions are confused with semijudicial functions and  from which of necessity there must be greatly increased personnel and  expenditure.  
1926-57	1926	THE WAGE EARNER  
1926-58	1926	The great body of our people are made up of wage earners. Several hundred  thousands of them are on the pay rolls of the United States Government.  Their condition very largely is fixed by legislation. We have recently  provided increases in compensation under a method of reclassification and  given them the advantage of a liberal retirement system as a support for  their declining years. Most of them are under the merit system, which is a  guaranty of their intelligence, and the efficiency of their service is a  demonstration of their loyalty. The Federal Government should continue to  set a good example for all other employers.  
1926-59	1926	In the industries the condition of the wage earner has steadily improved.  The 12-hour day is almost entirely unknown. Skilled labor is well  compensated. But there are unfortunately a multitude of workers who have  not yet come to share in the general prosperity of the Nation. Both the  public authorities and private enterprise should be solicitous to advance  the welfare of this class. The Federal Government has been seeking to  secure this end through a protective tariff, through restrictive  immigration, through requiring safety devices for the prevention of  accidents, through the granting of workman's compensation, through civilian  vocational rehabilitation and education, through employment information  bureaus, and through such humanitarian relief as was provided in the  maternity and infancy legislation. It is a satisfaction to report that a  more general condition of contentment exists among wage earners and the  country is more free from labor disputes than it has been for years. While  restrictive immigration has been adopted in part for the benefit of the  wage earner, and in its entirety for the benefit of the country, it ought  not to cause a needless separation of families and dependents from their  natural source of support contrary to the dictates of humanity.  
1926-60	1926	BITUMINOUS COAL  
1926-61	1926	No progress appears to have been made within large areas of the bituminous  coal industry toward creation of voluntary machinery by which greater  assurance can be given to the public of peaceful adjustment of wage  difficulties such as has been accomplished in the anthracite industry. This  bituminous industry is one of primary necessity and bears a great  responsibility to the Nation for continuity of supplies. As the wage  agreements in the unionized section of the industry expire on April 1 next,  and as conflicts may result which may imperil public interest, and have for  many years often called for action of the Executive in protection of the  public, I again recommend the passage of such legislation as will assist  the Executive in dealing with such emergencies through a special temporary  board of conciliation and mediation and through administrative agencies for  the purpose of distribution of coal and protection of the consumers of coal  from profiteering. At present the Executive is not only without authority  to act but is actually prohibited by law from making any expenditure to  meet the emergency of a coal famine.  
1926-62	1926	JUDICIARY  
1926-63	1926	The Federal courts hold a high position in the administration of justice in  the world. While individual judicial officers have sometimes been subjected  to just criticism, the courts as a whole have maintained an exceedingly  high standard. The Congress may well consider the question of supplying  fair salaries and conferring upon the Supreme Court the same rule-making  power on the law side of the district courts that they have always  possessed on the equity side. A bill is also pending providing for  retirement after a certain number of years of service, although they have  not been consecutive, which should have your favorable consideration. These  faithful servants of the Government are about the last that remain to be  provided for in the postwar readjustments.  
1926-64	1926	BANKING  
1926-65	1926	There has been pending in Congress for nearly three years banking  legislation to clarify the national bank act and reasonably to increase the  powers of the national banks. I believe that within the limitation of sound  banking principles Congress should now and for the future place the  national banks upon a fair equality with their competitors, the State  banks, and I trust that means may be found so that the differences on  branch-banking legislation between the Senate and the House of  Representatives may be settled along sound lines and the legislation  promptly enacted.  
1926-66	1926	It would be difficult to overestimate the service which the Federal reserve  system has already rendered to the country. It is necessary only to recall  the chaotic condition of our banking organization at the time the Federal  reserve system was put into operation. The old system consisted of a vast  number of independent banking units, with scattered bank reserves which  never could be mobilized in times of greatest need. In spite of vast  banking resources, there was no coordination of reserves or any credit  elasticity. As a consequence, a strain was felt even during crop-moving  periods and when it was necessary to meet other seasonal and regularly  recurring needs.  
1926-67	1926	The Federal reserve system is not a panacea for all economic or financial  ills. It can not prevent depression in certain industries which are  experiencing overexpansion of production or contraction of their markets.  Its business is to furnish adequate credit and currency facilities. This it  has succeeded in doing, both during the war and in the more difficult  period of deflation and readjustment which followed. It enables us to look  to the future with confidence and to make plans far ahead, based on the  belief that the Federal reserve system will exercise a steadying influence  on credit conditions and thereby prevent tiny sudden or severe reactions  from the period of prosperity which we are now enjoying. In order that  these plans may go forward, action should be taken at the present session  on the question of renewing the banks' charters and thereby insuring a  continuation of the policies and present usefulness of the Federal reserve  system.  
1926-68	1926	FEDERAL REGULATION  
1926-69	1926	I am in favor of reducing, rather than expanding, Government bureaus which  seek to regulate and control the business activities of the people.  Everyone is aware that abuses exist and will exist so long as we are  limited by human imperfections. Unfortunately, human nature can not be  changed by an act of the legislature. When practically the sole remedy for  many evils lies in the necessity of the people looking out for themselves  and reforming their own abuses, they will find that they are relying on a  false security if the Government assumes to hold out the promise that it is  looking out for them and providing reforms for them. This principle is  preeminently applicable to the National Government. It is too much assumed  that because an abuse exists it is the business of the National Government  to provide a remedy. The presumption should be that it is the business of  local and State governments. Such national action results in encroaching  upon the salutary independence of the States and by undertaking to  supersede their natural authority fills the land with bureaus and  departments which are undertaking to do what it is impossible for them to  accomplish and brings our whole system of government into disrespect and  disfavor. We ought to maintain high standards. We ought to punish  wrongdoing. Society has not only the privilege but the absolute duty of  protecting itself and its individuals. But we can not accomplish this end  by adopting a wrong method. Permanent success lies in local, rather than  national action. Unless the locality rises to its own requirements, there  is an almost irresistible impulse for the National Government to intervene.  The States and the Nation should both realize that such action is to be  adopted only as a last resort.  
1926-70	1926	THE NEGRO  
1926-71	1926	The social well-being of our country requires our constant effort for the  amelioration of race prejudice and the extension to all elements of equal  opportunity and equal protection under the laws which are guaranteed by  the. Constitution. The Federal Government especially is charged with this  obligation in behalf of the colored people of the Nation. Not only their  remarkable progress, their devotion and their loyalty, but, our duty to  ourselves under our claim that we are an enlightened people requires us to  use all our power to protect them from the crime of lynching. Although  violence of this kind has very much decreased, while any of it remains we  can not justify neglecting to make every effort to eradicate it by law.  
1926-72	1926	The education of the colored race under Government encouragement is  proceeding successfully and ought to have continuing support. An increasing  need exists for properly educated and trained medical skill to be devoted  to the service of this race.  
1926-73	1926	INSULAR POSSESSIONS  
1926-74	1926	This Government holds in sacred trusteeship islands which it has acquired  in the East and West Indies. In all of them the people are more prosperous  than at any previous time. A system of good roads, education, and general  development is in progress. The people are better governed than ever before  and generally content.  
1926-75	1926	In the Philippine Islands Maj. Gen. Leonard Wood has been Governor General  for five years and has administered his office with tact and ability  greatly to the success of the Filipino people. These are a proud and  sensitive race, who are making such progress with our cooperation that we  can view the results of this experiment with great satisfaction. As we are  attempting to assist this race toward self-government, we should look upon  their wishes with great respect, granting their requests immediately when  they are right, yet maintaining a frank firmness in refusing when they are  wrong. We shall measure their progress in no small part by their acceptance  of the terms of the organic law under which the islands are governed and  their faithful observance of its provisions. Need exists for clarifying the  duties of the auditor and declaring them to be what everyone had supposed  they were. We have placed our own expenditures under the supervision of the  Comptroller General. It is not likely that the expenditures in the  Philippine Islands need less supervision than our own. The Governor General  is hampered in his selection of subordinates by the necessity of securing a  confirmation, which has oftentimes driven him to the expediency of using  Army officers in work for which civilian experts would be much better  fitted. Means should be provided for this and such other purposes as he may  require out of the revenue which this Government now turns back to the  Philippine treasury.  
1926-76	1926	In order that these possessions might stiffer no seeming neglect, I have  recently sent Col. Carmi A. Thompson to the islands to make a survey in  cooperation with the Governor General to suggest what might be done to  improve conditions. Later, I may make a more extended report including  recommendations. The economic development of the islands is very important.  They ought not to be turned back to the people until they are both  politically fitted for self-government and economically independent. Large  areas are adaptable to the production of rubber. No one contemplates any  time in the future either under the present or a more independent form of  government when we should not assume some responsibility for their defense.  For their economic advantage, for the employment of their people, and as a  contribution to our power of defense which could not be carried on without  rubber, I believe this industry should be encouraged. It is especially  adapted to the Filipino people themselves, who might cultivate it  individually on a small acreage. It could be carried on extensively by  American capital in a way to furnish employment at good wages. I am opposed  to the promotion of any policy that does not provide for absolute freedom  on the part of the wage earners and do not think we should undertake to  give power for large holdings of land in the islands against the opposition  of the people of the locality. Any development of the islands must be  solely with the first object of benefiting the people of the islands. At an  early day, these possessions should be taken out from under all military  control and administered entirely on the civil side of government.  
1926-77	1926	NATIONAL DEFENSE  
1926-78	1926	Our policy of national defense is not one of making war, but of insuring  peace. The land and sea force of America, both in its domestic and foreign  implications, is distinctly a peace force. It is an arm of the police power  to guarantee order and the execution of the law at home and security to our  citizens abroad. No self-respecting nation would neglect to provide an army  and navy proportionate to its population, the extent of its territory, and  the dignity of the place which it occupies in the world. When it is  considered that no navy in the world, with one exception, approaches ours  and none surpasses it, that our Regular Army of about 115,000 men is the  equal of any other like number of troops, that our entire permanent and  reserve land and sea force trained and training consists of a personnel of  about 610,000, and that our annual appropriations are about $680,000,000 a  year, expended under the direction of an exceedingly competent staff, it  can not be said that our country is neglecting its national defense. It is  true that a cult of disparagement exists, but that candid examination made  by the Congress through its various committees has always reassured the  country and demonstrated that it is maintaining the most adequate defensive  forces in these present years that it has ever supported in time of peace.  
1926-79	1926	This general policy should be kept in effect. Here and there temporary  changes may be made in personnel to meet requirements in other directions.  Attention should be given to submarines, cruisers, and air forces.  Particular points may need strengthening, but as a whole our military power  is sufficient.  
1926-80	1926	The one weak place in the whole line is our still stupendous war debt. In  any modern campaign the dollars are the shock troops. With a depleted  treasury in the rear, no army can maintain itself in the field. A country  loaded with debt is a country devoid of the first line of defense. Economy  is the handmaid of preparedness. If we wish to be able to defend ourselves  to the full extent of our power in the future, we shall discharge as soon  as possible the financial burden of the last war. Otherwise we would face a  crisis with a part of our capital resources already expended.  
1926-81	1926	The amount and kind of our military equipment is preeminently a question  for the decision of the Congress, after giving due consideration to the  advice of military experts and the available public revenue. Nothing is  more laudable than the cooperation of the agricultural and industrial  resources of the country for the purpose of supplying the needs of national  defense. In time of peril the people employed in these interests  volunteered in a most self-sacrificing way, often at the nominal charge of  a dollar a year. But the Army and Navy are not supported for the benefit of  supply concerns; supply concerns are supported for the benefit of the Army  and Navy. The distribution of orders on what is needed from different  concerns for the purpose of keeping up equipment and organization is  perfectly justified, but any attempt to prevail upon the Government to  purchase beyond its needs ought not to be tolerated. It is eminently fair  that those who deal with the Government should do so at a reasonable  profit. However, public money is expended not that some one may profit by  it, but in order to serve a public purpose.  
1926-82	1926	While our policy of national defense will proceed in order that we may be  independent and self-sufficient, I am opposed to engaging in any attempt at  competitive armaments. No matter how much or how little some other country  may feel constrained to provide, we can well afford to set the example, not  of being dictated to by others, but of adopting our own standards. We are  strong enough to pursue that method, which will be a most wholesome model  for the rest of the world. We are eminently peaceful, but we are by no  means weak. While we submit our differences with others, not to the  adjudication of force, but of reason, it is not because we are unable to  defend our rights. While we are doing our best to eliminate all resort to  war for the purpose of settling disputes, we can not but remember that the  peace we now enjoy had to be won by the sword and that if the rights of our  country are to be defended we can not rely for that purpose upon anyone but  ourselves. We can not shirk the responsibility, which is the first  requisite of all government, of preserving its own integrity and  maintaining the rights of its own citizens. It is only in accordance with  these principles that we can establish any lasting foundations for an  honorable and permanent peace.  
1926-83	1926	It is for these reasons that our country, like any other country, proposes  to provide itself with an army and navy supported by a merchant marine. Yet  these are not for competition with any other power. For years we have  besought nations to disarm. We have recently expressed our willingness at  Geneva to enter into treaties for the limitation of all types of warships  according to the ratio adopted at the Washington Conference. This offer is  still pending. While we are and shall continue to be armed it is not as a  menace, but rather a common assurance of tranquility to all the peaceloving  people of the world. For us to do any less would be to disregard our  obligations, evade our responsibilities, and jeopardize our national honor.  
1926-84	1926	VETERANS  
1926-85	1926	This country, not only because it is bound by honor but because of the  satisfaction derived from it, has always lavished its bounty upon its  veterans. For years a service pension has been bestowed upon the Grand Army  on reaching a certain age. Like provision has been made for the survivors  of the Spanish War. A liberal future compensation has been granted to all  the veterans of the World War. But it is in the case of the, disabled and  the dependents that the Government exhibits its greatest solicitude. This  work is being well administered by the Veterans' Bureau. The main  unfinished feature is that of hospitalization. This requirement is being  rapidly met. Various veteran bodies will present to you recommendations  which should have your careful consideration. At the last session we  increased our annual expenditure for pensions and relief on account of the  veterans of three wars. While I approve of proper relief for all suffering,  I do not favor any further extension of our pension system at this time.  
1926-86	1926	ALIEN PROPERTY  
1926-87	1926	We still have in the possession of the Government the alien property. It  has always been the policy of America to hold that private enemy property  should not be confiscated in time of war. This principle we have  scrupulously observed. As this property is security for the claims of our  citizens and our Government, we can not relinquish it without adequate  provision for their reimbursement. Legislation for the return of this  property, accompanied by suitable provisions for the liquidation of the  claims of our citizens and our Treasury, should be adopted. If our  Government releases to foreigners the security which it holds for  Americans, it must at the same time provide satisfactory safeguards for  meeting American claims.  
1926-88	1926	PROHIBITION  
1926-89	1926	The duly authorized public authorities of this country have made  prohibition the law of the land. Acting under the Constitution the Congress  and the legislatures of practically all the, States have adopted  legislation for its enforcement. Some abuses have arisen which require  reform. Under the law the National Government has entrusted to the Treasury  Department the especial duty of regulation and enforcement. Such  supplementary legislation as it requires to meet existing conditions should  be carefully and speedily enacted. Failure to support the Constitution and  observe the law ought not to be tolerated by public opinion. Especially  those in public places, who have taken their oath to support the  Constitution, ought to be most scrupulous in its observance. Officers of  the Department of Justice throughout the country should be vigilant in  enforcing the law, but local authorities, which had always been mainly  responsible for the enforcement of law in relation to intoxicating liquor,  ought not to seek evasion by attempting to shift the burden wholly upon the  Federal agencies. Under the Constitution the States are jointly charged  with the Nation in providing for the enforcement of the prohibition  amendment. Some people do not like the amendment, some do not like other  parts of the Constitution, some do not like any of it. Those who entertain  such sentiments have a perfect right to seek through legal methods for a  change. But for any of our inhabitants to observe such parts of the  Constitution as they like, while disregarding others, is a doctrine that  would break down all protection of life and property and destroy the  American system of ordered liberty.  
1926-90	1926	FOREIGN RELATIONS  
1926-91	1926	The foreign policy of this Government is well known. It is one of peace  based on that mutual respect that arises from mutual regard for  international rights and the discharge of international obligations. It is  our purpose to promote understanding and good will between ourselves and  all other people. The American people are altogether lacking in an  appreciation of the tremendous good fortune that surrounds their  international position. We have no traditional enemies. We are not  embarrassed over any disputed territory. We have no possessions that are  coveted by others; they have none that are coveted by us. Our borders are  unfortified. We fear no one; no one fears us. All the world knows that the  whole extent of our influence is against war and in favor of peace, against  the use of force and in favor of negotiation, arbitration, and adjudication  as a method of adjusting international differences. We look with disfavor  upon all aggressive warfare. We are strong enough so that no one can charge  us with weakness if we are slow to anger. Our place is sufficiently  established so that we need not be sensitive over trifles. Our resources,  are large enough so that we can afford to be generous. At the same time we  are a nation among nations and recognize a responsibility not only to  ourselves, but in the interests of a stable and enlightened civilization,  to protect and defend the international rights of our Government and our  citizens.  
1926-92	1926	It is because of our historical detachment and the generations of  comparative indifference toward it by other nations that our public is  inclined to consider altogether too seriously the reports that we are  criticized abroad. We never had a larger foreign trade than at the present  time. Our good offices were never more sought and the necessity for our  assistance and cooperation was never more universally declared in any time  of peace. We know that the sentiments which we entertain toward all other  nations are those of the most sincere friendship and good will and of all  unbounded desire to help, which we are perfectly willing to have judged by  their fruits. In our efforts to adjust our international obligations we  have met with a response which, when everything is considered, I believe  history will record as a most remarkable and gratifying demonstration of  the sanctity with which civilized nations undertake to discharge their  mutual obligations. Debt settlements have been negotiated with practically  all of those who owed us and all finally adjusted but two, which are, in  process of ratification. When we consider the real sacrifice that will be  necessary on the part of other nations, considering all their  circumstances, to meet their agreed payments, we ought to hold them in  increased admiration and respect. It is true that we have extended to them  very generous treatment, but it is also true that they have agreed to repay  its all that we loaned to them and some interest.  
1926-93	1926	A special conference on the Chinese customs tariff provided for by the  treaty between the nine powers relating to the Chinese customs tariff  signed at Washington on February 6, 1922, was called by the Chinese  Government to meet at Peking, on October 26, 1925. We participated in this  conference through fully empowered delegates and, with good will,  endeavored to cooperate with the other participating powers with a view to  putting into effect promises made to China at the Washington conference,  and considering any reasonable proposal that might be made by the Chinese  Government for the revision of the treaties on the subject of China's  tariff. With these aims in view the American delegation at the outset of  the conference proposed to put into effect the surtaxes provided for by the  Washington treaty and to proceed immediately to the negotiation of a  treaty, which, among other things, was to make provision for the abolition  of taxes collected on goods in transit, remove the tariff restrictions in  existing treaties, and put into effect the national tariff law of China.  
1926-94	1926	Early in April of the present year the central Chinese Government was  ousted from power by opposing warring factions. It became impossible under  the circumstances to continue the negotiations. Finally, on July 3, the  delegates of the foreign powers, including those of the United States,  issued a statement expressing their unanimous and earnest desire to proceed  with the work of the conference at the earliest possible moment when the  delegates of the Chinese Government are in a position to resume discussions  with the foreign delegates of the problems before the conference. We are  prepared to resume the negotiations thus interrupted whenever a Government  representing the Chinese people and acting on their behalf presents itself.  The fact that constant warfare between contending Chinese factions has  rendered it impossible to bring these negotiations to a successful  conclusion is a matter of deep regret. Throughout these conflicts we have  maintained a position of the most careful neutrality. Our naval vessels in  Asiatic waters, pursuant to treaty rights, have been used only for the  protection of American citizens.  
1926-95	1926	Silas H. Strawn, Esq., was sent to China as American commissioner to  cooperate with commissioners of the other powers in the establishment of a  commission to inquire into the present practice of extraterritorial  jurisdiction in China, with a view to reporting to the Governments of the  several powers their findings of fact in regard to these matters. The  commission commenced its work in January, 1926, and agreed upon a joint  report which was signed on September 16, 1926. The commission's report has  been received and is being studied with a view to determining our future  policy in regard to the question of extraterritorial privileges under  treaties between the United States and China.  
1926-96	1926	The Preparatory Commission for the Disarmament Conference met at Geneva on  May 18 and its work has been proceeding almost continuously since that  date. It would be premature to attempt to form a judgment as to the  progress that has been made. The commission has had before it a  comprehensive list of questions touching upon all aspects of the question  of the limitation of armament. In the commission's discussions many  differences of opinion have developed. However, I am hopeful that at least  some measure of agreement will be reached as the discussions continue. The  American representation on the commission has consistently tried to be  helpful, and has kept before it the practical objective to which the  commission is working, namely, actual agreements for the limitation of  armaments. Our representatives will continue their work in that direction.  
1926-97	1926	One of the most encouraging features of the commission's work thus far has  been the agreement in principle among the naval experts of a majority of  the powers parties to the Washington treaty limiting naval armament upon  methods and standards for the comparison and further limitation of naval  armament. It is needless to say that at the proper time I shall be prepared  to proceed along practical lines to the conclusion of agreements carrying  further the work begun at the Washington Conference in 1921.  
1926-98	1926	DEPARTMENT REPORTS  
1926-99	1926	Many important subjects which it is impossible even to mention in the short  space of an annual message you will find fully discussed in the  departmental reports. A failure to include them here is not to be taken as  indicating any lack of interest, but only a disinclination to state  inadequately what has been much better done in other documents.  
1926-100	1926	THE CAPITAL CITY  
1926-101	1926	We are embarking on an ambitious building program for the city of  Washington. The Memorial Bridge is under way with all that it holds for use  and beauty. New buildings are soon contemplated. This program should  represent the best that exists in the art and science of architecture. Into  these structures which must be considered as of a permanent nature ought to  go the aspirations of the Nation, its ideals expressed in forms of beauty.  If our country wishes to compete with others, let it not be in the support  of armaments but in the making of a beautiful capital city. Let it express  the soul of America. Whenever an American is at the seat of his Government,  however traveled and cultured he may be, he ought to find a city of stately  proportion, symmetrically laid out and adorned with the best that there is  in architecture, which would arouse his imagination and stir his patriotic  pride. In the coming years Washington should be not only the art center of  our own country but the art center of the world. Around it should center  all that is best in science, in learning, in letters, and in art. These are  the results that justify the creation of those national resources with  which we have been favored.  
1926-102	1926	AMERICAN IDEALS  
1926-103	1926	America is not and must not be a country without ideals. They are useless  if they are only visionary; they are only valuable if they are practical. A  nation can not dwell constantly on the mountain tops. It has to be  replenished and sustained through the ceaseless toil of the less inspiring  valleys. But its face ought always to be turned upward, its vision ought  always to be fixed on high.  
1926-104	1926	We need ideals that can be followed in daily life, that can be translated  into terms of the home. We can not expect to be relieved from toil, but we  do expect to divest it of degrading conditions. Work is honorable; it is  entitled to an honorable recompense. We must strive mightily, but having  striven there is a defect in our political and social system if we are not  in general rewarded with success. To relieve the land of the burdens that  came from the war, to release to the individual more of the fruits of his  own industry, to increase his earning capacity and decrease his hours of  labor, to enlarge the circle of his vision through good roads and better  transportation, to lace before him the opportunity for education both in  science and in art, to leave him free to receive the inspiration of  religion, all these are ideals which deliver him from the servitude of the  body and exalt him to the service of the soul. Through this emancipation  from the things that are material, we broaden our dominion over the things  that are spiritual.  
1927-1	1927	Members of the Congress:  
1927-2	1927	It is gratifying to report that for the fourth consecutive year the state  of the Union in general is good. We are at peace. The country as a whole  has had a prosperity never exceeded. Wages are at their highest range,  employment is plentiful. Some parts of agriculture and industry have  lagged; some localities have suffered from storm and flood. But such losses  have been absorbed without serious detriment to our great economic  structure. Stocks of goods are moderate and a wholesome caution is  prevalent. Rates of interest for industry, agriculture, and government have  been reduced. Savers and investors are providing capital for new  construction in industry and public works. The purchasing power of  agriculture has increased. If the people maintain that confidence which  they are entitled to have in themselves, in each other, and in America, a  comfortable prosperity will continue.  
1927-3	1927	CONSTRUCTIVE ECONOMY  
1927-4	1927	Without constructive economy in Government expenditures we should not now  be enjoying these results or these prospects. Because we are not now  physically at war, some people are disposed to forget that our war debt  still remains. The Nation must make financial sacrifices, accompanied by a  stern self-denial in public expenditures, until we have conquered the  disabilities of our public finance. While our obligation to veterans and  dependents is large and continuing, the heavier burden of the national debt  is being steadily eliminated. At the end of this fiscal year it will be  reduced from about $26,600,000,000 to about $17,975,000,000. Annual  interest, including war savings, will have been reduced from $1,055,000,000  to $670,0001,000. The sacrifices of the people, the economy of the  Government, are showing remarkable results. They should be continued for  the purpose of relieving the Nation of the burden of interest and debt and  releasing revenue for internal improvements and national development.  
1927-5	1927	Not only the amount, but the rate, of Government interest has been reduced.  Callable bonds have been refunded and paid, so that during this year the  average rate of interest on the present public debt for the first time fell  below 4 per cent. Keeping the credit of the Nation high is a tremendously  profitable operation.  
1927-6	1927	TAX REDUCTION  
1927-7	1927	The immediate fruit of economy and the retirement of the public debt is tax  reduction. The annual saving in interest between 1925 and 1929 is  $212,000,000. Without this no bill to relieve the taxpayers would be worth  proposing. The three measures already enacted leave our Government revenues  where they are not oppressive. Exemptions, have been increased until  115,000,000 people make but 2,500,000 individual taxable returns, so that  further reduction should be mainly for the purpose of removing  inequalities. The Secretary of the Treasury has recommended a measure which  would give us a much better balanced system of taxation and without  oppression produce sufficient revenue. It has my complete support.  
1927-8	1927	Unforeseen contingencies requiring money are always arising. Our probable  surplus for June 30, 1929, is small. A slight depression in business would  greatly reduce our revenue because of our present method of taxation. The  people ought to take no selfish attitude of pressing for removing moderate  and fair taxes which might produce a deficit. We must keep our budget  balanced for each year. That is the corner stone of our national credit,  the trifling price we pay to command the lowest rate of interest of any  great power in the world. Any surplus can be applied to debt reduction, and  debt reduction is tax reduction. Under the present circumstances it would  be far better to leave the rates as they are than to enact a bill carrying  the peril of a deficit. This is not a problem to be approached in a narrow  or partisan spirit. All of those who participate in finding a reasonable  solution will be entitled to participate in any credit that accrues from it  without regard to party. The Congress has already demonstrated that tax  legislation can be removed from purely political consideration into the  realm of patriotic business principles.  
1927-9	1927	Any bill for tax reduction should be written by those who are responsible  for raising, managing, and expending the finances of the Government. If  special interests, too often selfish, always uninformed of the national  needs as a whole, with hired agents using their proposed beneficiaries as  engines of propaganda, are permitted to influence the withdrawal of their  property from taxation, we shall have a law that is unbalanced and unjust,  bad for business, bad for the country, probably resulting in a deficit,  with disastrous financial Consequences. The Constitution has given the  Members of the Congress sole authority to decide what tax measures shall be  presented for approval. While welcoming information from any quarter, the  Congress should continue to exercise its own judgment in a matter so vital  and important to all the interests of the country as taxation.  
1927-10	1927	NATIONAL DEFENSE  
1927-11	1927	Being a nation relying not on force, but on fair dealing and good will, to  maintain peace with others, we have provided a moderate military force in a  form adapted solely to defense. It should be continued with a very generous  supply of officers and with the present base of personnel, subject to  fluctuations which may be temporarily desirable.  
1927-12	1927	The five-year program for our air forces is in keeping with this same  policy and commensurate with the notable contributions of America to the  science of aeronautics. The provisions of the law lately enacted are being  executed as fast as the practical difficulties of an orderly and stable  development permit.  
1927-13	1927	While our Army is small, prudence requires that it should be kept in a high  state of efficiency and provided with such supplies as would permit of its  immediate expansion. The garrison ration has lately been increased.  Recommendations for an appropriation of $6,166,000 for new housing made to  the previous Congress failed to pass. While most of the Army is well  housed, some of it which is quartered in wartime training camps is becoming  poorly housed. In the past three years $12,533,000 have been appropriated  for reconstruction and repairs, and an authorization has been approved of  $22,301,000 for new housing, under which $8,070,000 has already been  appropriated. A law has also been passed, complying with the request of the  War Department, allocating funds received from the sale of buildings and  land for housing purposes. The work, however, is not completed, so that  other appropriations are being recommended.  
1927-14	1927	Our Navy is likewise a weapon of defense. We have a foreign commerce and  ocean lines of trade unsurpassed by any other country. We have outlying  territory in the two great oceans and long stretches of seacoast studded  with the richest cities in the world. We are responsible for the protection  of a large population and the greatest treasure ever bestowed upon any  people. We are charged with an international duty of defending the Panama  Canal. To meet these responsibilities we need a very substantial sea  armament. It needs aircraft development, which is being provided under the  five-year program. It needs submarines as soon as the department decides  upon the best type of construction. It needs airplane carriers and a  material addition to its force of cruisers. We can plan for the future and  begin a moderate building program.  
1927-15	1927	This country has put away the Old World policy of competitive armaments. It  can never be relieved of the responsibility of adequate national defense.  We have one treaty secured by an unprecedented attitude of generosity on  our part for a limitation in naval armament. After most careful  preparation, extending over months, we recently made every effort to secure  a three-power treaty to the same end. We were granted much cooperation by  Japan, but we were unable to come to an agreement with Great Britain. While  the results of the conference were of considerable value, they were mostly  of a negative character. We know now that no agreement can be reached which  will be inconsistent with a considerable building program on our part. We  are ready and willing to continue the preparatory investigations on the  general subject of limitation of armaments which have been started under  the auspices of the League of Nations.  
1927-16	1927	We have a considerable cruiser tonnage, but a part of it is obsolete.  Everyone knew that had a three-power agreement been reached it would have  left us with the necessity of continuing our building program. The failure  to agree should not cause us to build either more or less than we otherwise  should. Any future treaty of limitation will call on us for more ships. We  should enter on no competition. We should refrain from no needful program.  It should be made clear to all the world that lacking a definite agreement,  the attitude of any other country is not to be permitted to alter our own  policy. It should especially be demonstrated that propaganda will not cause  us to change our course. Where there is no treaty limitation, the size of  the Navy which America is to have will be solely for America to determine.  No outside influence should enlarge it or diminish it. But it should be  known to all that our military power holds no threat of aggrandizement. It  is a guaranty of peace and security at home, and when it goes abroad it is  an instrument for the protection of the legal rights of our citizens under  international law, a refuge in time of disorder, and always the servant of  world peace. Wherever our flag goes the rights of humanity increase.  
1927-17	1927	MERCHANT MARINE  
1927-18	1927	The United States Government fleet is transporting a large amount of  freight and reducing its drain on the Treasury. The Shipping Board is  constantly under pressure, to which it too often yields, to protect private  interests, rather than serve the public welfare. More attention should be  given to merchant ships as an auxiliary of the Navy. The possibility of  including their masters and crews in the Naval Reserve, with some  reasonable compensation, should be thoroughly explored as a method of  encouraging private operation of shipping. Public operation is not a  success. No investigation, of which I have caused several to be made, has  failed to report that it could not succeed or to recommend speedy transfer  to private ownership. Our exporters and importers are both indifferent  about using American ships. It should be our policy to keep our present  vessels in repair and dispose of them as rapidly as possible, rather than  undertake any new construction. Their operation is a burden on the National  Treasury, for which we are not receiving sufficient benefits.  
1927-19	1927	COMMERCIAL AVIATION  
1927-20	1927	A rapid growth is taking place in aeronautics. The Department of Commerce  has charge of the inspection and licensing system and the construction of  national airways. Almost 8,000 miles are already completed and about 4,000  miles more contemplated. Nearly 4,400 miles are now equipped and over 3,000  miles more will have lighting and emergency landing fields by next July.  Air mail contracts are expected to cover 24 of these lines. Daily airway  flying is nearly 15,000 miles and is expected to reach 25,000 miles early  next year.  
1927-21	1927	Flights for other purposes exceed 22,000 miles each day. Over 900 airports,  completed and uncompleted, have been laid out. The demand for aircraft has  greatly increased. The policy already adopted by the Congress is producing  the sound development of this coming industry.  
1927-22	1927	WESTERN HEMISPHERE AIR MAIL  
1927-23	1927	Private enterprise is showing much interest in opening up aviation service  to Mexico and Central and South America. We are particularly solicitous to  have the United States take a leading part in this development. It is  understood that the governments of our sister countries would be willing to  cooperate. Their physical features, the undeveloped state of their  transportation, make an air service especially adaptable to their usage.  The Post Office Department should be granted power to make liberal  long-term contracts for carrying our mail, and authority should be given to  the Army and the Navy to detail aviators and planes to cooperate with  private enterprise in establishing such mail service with the consent of  the countries concerned. A committee of the Cabinet will later present a  report on this subject.  
1927-24	1927	GOOD ROADS  
1927-25	1927	The importance and benefit of good roads is more and more coming to be  appreciated. The National Government has been making liberal contributions  to encourage their construction. The results and benefits have been very  gratifying. National participation, however, should be confined to  trunk-line systems. The national tax on automobiles is now nearly  sufficient to meet this outlay. This tax is very small, and on low-priced  cars is not more than $2 or $3 each year.  
1927-26	1927	While the advantage of having good roads is very large, the desire for  improved highways is not limited to our own country. It should and does  include all the Western Hemisphere. The principal points in Canada are  already accessible. We ought to lend our encouragement in any way we can  for more good roads to all the principal points in this hemisphere south of  the Rio Grande. It has been our practice to supply these countries with  military and naval advisers, when they have requested it, to assist them in  national defense. The arts of peace are even more important to them and to  us. Authority should be given by law to provide them at their request with  engineering advisers for the construction of roads and bridges. In some of  these countries already wonderful progress is being made in road building,  but the engineering features are often very exacting and the financing  difficult. Private interests should look with favor on all reasonable loans  sought by these countries to open such main lines of travel.  
1927-27	1927	This general subject has been promoted by the Pan American Congress of  Highways, which will convene again at Rio de Janeiro in July, 1928. It is  desirable that the Congress should provide for the appointment of delegates  to represent the Government of the United States.  
1927-28	1927	CUBAN PARCEL POST  
1927-29	1927	We have a temporary parcel-post convention with Cuba. The advantage of it  is all on our side. During 1926 we shipped twelve times as many parcels,  weighing twenty-four times as much, as we received. This convention was  made on the understanding that we would repeal an old law prohibiting the  importation of cigars and cigarettes in quantities less than 3,000 enacted  in 1866 to discourage smuggling, for which it has long been unnecessary.  This law unjustly discriminates against an important industry of Cuba. Its  repeal has been recommended by the Treasury and Post Office Departments.  Unless this is done our merchants and railroads will find themselves  deprived of this large parcel-post business after the 1st of next March,  the date of the expiration of the convention, which has been extended upon  the specific understanding that it would expire at that time unless this  legislation was enacted. We purchase large quantities of tobacco made in  Cuba. It is not probable that our purchases would be any larger if this law  was repealed, while it would be an advantage to many other industries in  the United States.  
1927-30	1927	INSULAR POSSESSIONS  
1927-31	1927	Conditions in the Philippine Islands have been steadily improved.  Contentment and good order prevail. Roads, irrigation works, harbor  improvements, and public buildings are being constructed. Public education  and sanitation have been advanced. The Government is in a sound financial  condition. These immediate results were especially due to the  administration of Gov. Gen. Leonard Wood. The six years of his governorship  marked a distinct improvement in the islands and rank as one of the  outstanding accomplishments of this distinguished man. His death is a loss  to the Nation and the islands.  
1927-32	1927	Greater progress could be made, more efficiency could be put into  administration, if the Congress would undertake to expend, through its  appropriating power, all or a part of the customs revenues which are now  turned over to the Philippine treasury. The powers of the auditor of the  islands also need revision and clarification. The government of the islands  is about 98 per cent in the hands of the Filipinos. An extension of the  policy of self-government will be hastened by the demonstration on their  part of their desire and their ability to carry out cordially and  efficiently the provisions of the organic law enacted by the Congress for  the government of the islands. It would be well for a committee of the  Congress to visit the islands every two years.  
1927-33	1927	A fair degree of progress is being made in Porto Rico. Its agricultural  products are increasing; its treasury position, which has given much  concern, shows improvement. I am advised by the governor that educational  facilities are still lacking. Roads are being constructed, which he  represents are the first requisite for building schoolhouses. The loyalty  of the island to the United States is exceedingly gratifying. A memorial  will be presented to you requesting authority to have the governor elected  by the people of Porto Rico. This was never done in the case of our own  Territories. It is admitted that education outside of the towns is as yet  very deficient. Until it has progressed further the efficiency of the  government and the happiness of the people may need the guiding hand of an  appointed governor. As it is not contemplated that any change should be  made immediately, the general subject may well have the thoughtful study of  the Congress.  
1927-34	1927	PANAMA CANAL  
1927-35	1927	The number of commercial ships passing through the Panama Canal has  increased from 3,967 in 1923 to 5,475 in 1927. The total amount of tolls  turned into the Treasury is over $166,000,000, while all the operations of  the canal have yielded a surplus of about $80,000,000. In order to provide  additional storage of water and give some control over the floods of the  Chagres River, it is proposed to erect a dam to cost about $12,000,000 at  Alhajuela. It will take some five years to complete this work.  
1927-36	1927	AGRICULTURE  
1927-37	1927	The past year has seen a marked improvement in the general condition of  agriculture. Production is better balanced and without acute shortage or  heavy surplus. Costs have been reduced and the average output of the worker  increased. The level of farm prices has risen while others have fallen, so  that the purchasing power of the farmer is approaching a normal figure. The  individual farmer is entitled to great credit for the progress made since  1921. He has adjusted his production and through cooperative organizations  and other methods improved his marketing. He is using authenticated facts  and employing sound methods which other industries are obliged to use to  secure stability and prosperity. The old-fashioned haphazard system is  being abandoned, economics are being applied to ascertain the best adapted  unit of land, diversification is being promoted, and scientific methods are  being used in production, and business principles in marketing.  
1927-38	1927	Agriculture has not fully recovered from postwar depression. The fact is  that economic progress never marches forward in a straight line. It goes in  waves. One part goes ahead, while another halts and another recedes.  Everybody wishes agriculture to prosper. Any sound and workable proposal to  help the farmer will have the earnest support of the Government. Their  interests are not all identical. Legislation should assist as many  producers in as many regions as possible. It should be the aim to assist  the farmer to work out his own salvation socially and economically. No plan  will be of any permanent value to him which does not leave him standing on  his own foundation.  
1927-39	1927	In the past the Government has spent vast sums to bring land under  cultivation. It is apparent that this has reached temporarily the  saturation point. We have had a surplus of production and a poor market for  land, which has only lately shown signs of improvement. The main problem  which is presented for solution is one of dealing with a surplus of  production. It is useless to propose a temporary expedient. What is needed  is permanency and stability. Government price fixing is known to be unsound  and bound to result in disaster. A Government subsidy would work out in the  same way. It can not be sound for all of the people to hire some of the  people to produce a crop which neither the producers nor the rest of the  people want.  
1927-40	1927	Price fixing and subsidy will both increase the surplus, instead of  diminishing it. Putting the Government directly into business is merely a  combination of subsidy and price fixing aggravated by political pressure.  These expedients would lead logically to telling the farmer by law what and  how much he should plant and where he should plant it, and what and how  much he should sell and where he should sell it. The most effective means  of dealing with surplus crops is to reduce the surplus acreage. While this  can not be done by the individual farmer, it can be done through the  organizations already in existence, through the information published by  the Department of Agriculture, and especially through banks and others who  supply credit refusing to finance an acreage manifestly too large.  
1927-41	1927	It is impossible to provide by law for an assured success and prosperity  for all those who engage in farming. If acreage becomes overextended, the  Government can not assume responsibility for it. The Government can,  however, assist cooperative associations and other organizations in orderly  marketing and handling a surplus clearly due to weather and seasonal  conditions, in order to save the producer from preventable loss. While it  is probably impossible to secure this result at a single step, and much  will have to be worked out by trial and rejection, a beginning could be  made by setting up a Federal board or commission of able and experienced  men in marketing, granting equal advantages under this board to the various  agricultural commodities and sections of the country, giving encouragement  to the cooperative movement in agriculture, and providing a revolving loan  fund at a moderate rate of interest for the necessary financing. Such  legislation would lay the foundation for a permanent solution of the  surplus problem.  
1927-42	1927	This is not a proposal to lend more money to the farmer, who is already  fairly well financed, but to lend money temporarily to experimental  marketing associations which will no doubt ultimately be financed by the  regularly established banks, as were the temporary operations of the War  Finance Corporation. Cooperative marketing especially would be provided  with means of buying or building physical properties.  
1927-43	1927	The National Government has almost entirely relieved the farmer from income  taxes by successive tax reductions, but State and local taxes have  increased, putting on him a grievous burden. A policy of rigid economy  should be applied to State and local expenditures. This is clearly within  the legislative domain of the States. The Federal Government has also  improved our banking structure and system of agricultural credits. The  farmer will be greatly benefited by similar action in many States. The  Department of Agriculture is undergoing changes in organization in order  more completely to separate the research and regulatory divisions, that  each may be better administered. More emphasis is being placed on the  research program, not only by enlarging the appropriations for State  experiment stations but by providing funds for expanding the research work  of the department. It is in this direction that much future progress can be  expected.  
1927-44	1927	THE PROTECTIVE TARIFF  
1927-45	1927	The present tariff rates supply the National Treasury with well over  $600,000,000 of annual revenue. Yet, about 65 per cent of our imports come  in duty free. Of the remaining 35 per cent of imports on which duties are  laid about 23 per cent consists of luxuries and agricultural products, and  the balance of about 12 per cent, amounting, to around $560,000,000 is made  up of manufactures and merchandise. As no one is advocating any material  reduction in the rates on agriculture or luxuries, it is only the  comparatively small amount of about $560,000,000 of other imports that are  really considered in any discussion of reducing tariff rates. While this  amount, duty free, would be large enough seriously to depress many lines of  business in our own country, it is of small importance when spread over the  rest of the world.  
1927-46	1927	It is often stated that a reduction of tariff rates on industry would  benefit agriculture. It would be interesting to know to what commodities it  is thought this could be applied. Everything the farmer uses in farming is  already on the free list. Nearly everything he sells is protected. It would  seem to be obvious that it is better for the country to have the farmer  raise food to supply the domestic manufacturer than the foreign  manufacturer. In one case our country would have only the farmer; in the  other it would have the farmer and the manufacturer. Assuming that Europe  would have more money if it sold us larger amounts of merchandise, it is  not certain it would consume more food, or, if it did, that its purchases  would be made in this country. Undoubtedly it would resort to the cheapest  market, which is by no means ours. The largest and best and most profitable  market for the farmer in the world is our own domestic market. Any great  increase in manufactured imports means the closing of our own plants.  Nothing would be worse for agriculture.  
1927-47	1927	Probably no one expects a material reduction in the rates on manufactures  while maintaining the rates on agriculture. A material reduction in either  would be disastrous to the farmer. It would mean a general shrinkage of  values, a deflation of prices, a reduction of wages, a general depression  carrying our people down to the low standard of living in our competing  countries. It is obvious that this would not improve but destroy our market  for imports, which is best served by maintaining our present high  purchasing power under which in the past five years imports have increased  63 per cent.  
1927-48	1927	FARM LOAN SYSTEM  
1927-49	1927	It is exceedingly important that the Federal land and joint-stock land  banks should furnish the best possible service for agriculture. Certain  joint-stock banks have fallen into improper and unsound practices,  resulting in the indictment of the officials of three of them. More money  has been provided for examinations, and at the instance of the Treasury  rules and regulations of the Federal Farm Board have been revised. Early  last May three of its members resigned. Their places were filled with men  connected with the War Finance Corporation. Eugene Meyer being designated  as Farm Loan Commissioner. The new members have demonstrated their ability  in the field of agricultural finance in the extensive operations of he War  Finance Corporation. Three joint-stock banks have gone into receivership.  It is necessary to preserve the public confidence in this system in order  to find a market for their bonds. A recent flotation was made at a record  low rate of 4 per cent. Careful supervision is absolutely necessary to  protect the investor and enable these banks to exercise their chief  function in serving agriculture.  
1927-50	1927	MUSCLE SHOALS  
1927-51	1927	The last year has seen considerable changes in the problem of Muscle  Shoals. Development of other methods show that nitrates can probably be  produced at less cost than by the use of hydroelectric power. Extensive  investigation made by the Department of War indicates that the nitrate  plants on this project are of little value for national defense and can  probably be disposed of within two years. The oxidation part of the plants,  however, should be retained indefinitely. This leaves this project mostly  concerned with power. It should, nevertheless, continue to be dedicated to  agriculture. It is probable that this desire can be best served by  disposing of the plant and applying the revenues received from it to  research for methods of more economical production of concentrated  fertilizer and to demonstrations and other methods of stimulating its use  on the farm. But in disposing of the property preference should be given to  proposals to use all or part of it for nitrate production and fertilizer  manufacturing.  
1927-52	1927	FLOOD CONTROL  
1927-53	1927	For many years the Federal Government has been building a system of dikes  along the Mississippi River for protection against high water. During the  past season the lower States were overcome by a most disastrous flood. Many  thousands of square miles were inundated a great many lives were lost, much  livestock was drowned, and a very heavy destruction of property was  inflicted upon the inhabitants. The American Red Cross at once went to the  relief of the stricken communities. Appeals for contributions have brought  in over $17,000,000. The Federal Government has provided services,  equipment, and supplies probably amounting to about $7,000,000 more.  Between $5,000,000 and $10,000,000 in addition have been provided by local  railroads, the States, and their political units. Credits have been  arranged by the Farm Loan Board, and three emergency finance corporations  with a total capital of $3,000,000 have insured additional resources to the  extent of $12,000,000. Through these means the 700,000 people in the  flooded areas have been adequately supported. Provision has been made to  care for those in need until after the 1st of January.  
1927-54	1927	The Engineering Corps of the Army has contracted to close all breaks in the  dike system before the next season of high water. A most thorough and  elaborate survey of the whole situation has been made and embodied in a  report with recommendations for future flood control, which will be  presented to the Congress. The carrying out of their plans will necessarily  extend over a series of years. They will call for a raising and  strengthening of the dike system with provision for emergency spillway's  and improvements for the benefit of navigation.  
1927-55	1927	Under the present law the land adjacent to the dikes has paid one-third of  the cost of their construction. This has been a most extraordinary  concession from the plan adopted in relation to irrigation, where the  general rule has been that the land benefited should bear the entire  expense. It is true, of course, that the troublesome waters do not  originate on the land to be reclaimed, but it is also true that such waters  have a right of way through that section of the country and the land there  is charged with that easement. It is the land of this region that is to be  benefited. To say that it is unable to bear any expense of reclamation is  the same thing as saying that it is not worth reclaiming. Because of  expenses incurred and charges already held against this land, it seems  probable that some revision will have to be made concerning the proportion  of cost which it should bear. But it is extremely important that it should  pay enough so that those requesting improvements will be charged with some  responsibility for their cost, and the neighborhood where works are  constructed have a pecuniary interest in preventing waste and extravagance  and securing a wise and economical expenditure of public funds.  
1927-56	1927	It is necessary to look upon this emergency as a national disaster. It has  been so treated from its inception. Our whole people have provided with  great generosity for its relief. Most of the departments of the Federal  Government have been engaged in the same effort. The governments of the  afflicted areas, both State and municipal, can not be given too high praise  for the courageous and helpful way in which they have come to the rescue of  the people. If the sources directly chargeable can not meet the demand, the  National Government should not fail to provide generous relief. This,  however, does not mean restoration. The Government is not an insurer of its  citizens against the hazard of the elements. We shall always have flood and  drought, heat and cold, earthquake and wind, lightning and tidal wave,  which are all too constant in their afflictions. The Government does not  undertake to reimburse its citizens for loss and damage incurred under such  circumstances. It is chargeable, however, with the rebuilding of public  works and the humanitarian duty of relieving its citizens from distress.  
1927-57	1927	The people in the flooded area and their representatives have approached  this problem in the most generous and broad-minded way. They should be met  with a like spirit on the part of the National government. This is all one  country. The public needs of each part must be provided for by the public  at large. No required relief should be refused. An adequate plan should be  adopted to prevent a recurrence of this disaster in order that the people  may restore to productivity and comfort their fields and their towns.  
1927-58	1927	Legislation by this Congress should be confined to our principal and most  pressing problem, the lower Mississippi, considering tributaries only so  far as they materially affect the main flood problem. A definite Federal  program relating to our waterways was proposed when the last Congress  authorized a comprehensive survey of all the important streams of the  country in order to provide for their improvement, including flood control,  navigation, power, and irrigation. Other legislation should wait pending a  report on this survey. The recognized needs of the Mississippi should not  be made a vehicle for carrying other projects. All proposals for  development should stand on their own merits. Any other method would result  in ill-advised conclusions, great waste of money, and instead of promoting  would delay the orderly and certain utilization of our water resources.  
1927-59	1927	Very recently several of the New England States have suffered somewhat  similarly from heavy rainfall and high water. No reliable estimate of  damage has yet been computed, but it is very large to private and public  property. The Red Cross is generously undertaking what is needed for  immediate relief, repair and reconstruction of houses, restocking of  domestic animals, and food, clothing, and shelter. A considerable sum of  money will be available through the regular channels in the Department of  Agriculture for reconstruction of highways. It may be necessary to grant  special aid for this purpose. Complete reports of what is required will  undoubtedly be available early in the session.  
1927-60	1927	INLAND NAVIGATION  
1927-61	1927	The Congress in its last session authorized the general improvements  necessary to provide the Mississippi waterway system with better  transportation. Stabilization of the levels of the Great Lakes and their  opening to the sea by an effective shipway remain to be considered. Since  the last session the Board of Engineers of the War Department has made a  report on the proposal for a canal through the State of New York, and the  Joint Board of Engineers, representing Canada and the United States, has  finished a report on the St. Lawrence River. Both of these boards conclude  that the St. Lawrence project is cheaper, affords a more expeditious method  of placing western products in European markets, and will cost less to  operate. The State Department has requested the Canadian Government to  negotiate treaties necessary to provide for this improvement. It will also  be necessary to secure an agreement with Canada to put in works necessary  to prevent fluctuation in the levels of the Great Lakes.  
1927-62	1927	Legislation is desirable for the construction of a dam at Boulder Canyon on  the Colorado River, primarily as a method of flood control and irrigation.  A secondary result would be a considerable power development and a source  of domestic water supply for southern California. Flood control is clearly  a national problem, and water supply is a Government problem, but every  other possibility should be exhausted before the Federal Government becomes  engaged in the power business. The States which are interested ought to  reach mutual agreement. This project is in reality their work. If they wish  the Federal Government to undertake it, they should not hesitate to make  the necessary concessions to each other. This subject is fully discussed in  the annual report of the Secretary of the Interior. The Columbia River  Basin project is being studied and will be one to be considered at some  future time.  
1927-63	1927	The Inland Waterways Corporation is proving successful and especially  beneficial to agriculture. A survey is being made to determine its future  needs. It has never been contemplated that if inland rivers were opened to  navigation it would then be necessary for the Federal Government to provide  the navigation. Such a request is very nearly the equivalent of a  declaration that their navigation is not profitable, that the commodities  which they are to carry can be taken at a cheaper rate by some other  method, in which case the hundreds of millions of dollars proposed to be  expended for opening rivers to navigation would be not only wasted, but  would entail further constant expenditures to carry the commodities of  private persons for less than cost.  
1927-64	1927	The policy is well established that the Government should open public  highways on land and on water, but for use of the public in their private  capacity. It has put on some demonstration barge lines, but always with the  expectation that if they prove profitable they would pass into private  hands and if they do not prove profitable they will be withdrawn. The  problems of transportation over inland waterways should be taken up by  private enterprise, so that the public will have the advantage of  competition in service. It is expected that some of our lines can be sold,  some more demonstration work done, and that with the completion of the Ohio  project a policy of private operation can be fully developed.  
1927-65	1927	PROHIBITION  
1927-66	1927	After more than two generations of constant debate, our country adopted a  system of national prohibition under all the solemnities involved in an  amendment to the Federal Constitution. In obedience to this mandate the  Congress and the States, with one or two notable exceptions, have passed  required laws for its administration and enforcement. This imposes upon the  citizenship of the country, and especially on all public officers, not only  the duty to enforce, but the obligation to observe the sanctions of this  constitutional provision and its resulting laws. If this condition could be  secured, all question concerning prohibition would cease. The Federal  Government is making every effort to accomplish these results through  careful organization, large appropriations, and administrative effort.  Smuggling has been greatly cut down, the larger sources of supply for  illegal sale have been checked, and by means of injunction and criminal  prosecution the process of enforcement is being applied. The same vigilance  on the part of local governments would render these efforts much more  successful. The Federal authorities propose to discharge their obligation  for enforcement to the full extent of their ability.  
1927-67	1927	THE NEGRO  
1927-68	1927	History does not anywhere record so much progress made in the same length  of time as that which has been accomplished by the Negro race in the United  States since the Emancipation Proclamation. They have come up from slavery  to be prominent in education, the professions, art, science, agriculture,  banking, and commerce. It is estimated that 50,000 of them are on the  Government pay rolls, drawing about $50,000,000 each year. They have been  the recipients of presidential appointments and their professional ability  has arisen to a sufficiently high plane so that they have been intrusted  with the entire management and control of the great veterans hospital at  Tuskegee, where their conduct has taken high rank. They have shown that  they have been worthy of all the encouragement which they have received.  Nevertheless, they are too often subjected to thoughtless and inconsiderate  treatment, unworthy alike of the white or colored races. They have  especially been made the target of the foul crime of lynching. For several  years these acts of unlawful violence had been diminishing. In the last  year they have shown an increase. Every principle of order and law and  liberty is opposed to this crime. The Congress should enact any legislation  it can under the Constitution to provide for its elimination.  
1927-69	1927	AMERICAN INDIAN  
1927-70	1927	The condition of the American Indian has much improved in recent years.  Full citizenship was bestowed upon them on June 2, 1924, and appropriations  for their care and advancement have been increased. Still there remains  much to be done.  
1927-71	1927	Notable increases in appropriations for the several major functions  performed by the Department of the Interior on behalf of the Indians have  marked the last five years. In that time, successive annual increases in  appropriations for their education total $1,804,325; for medical care,  $578,000; and for industrial advancement, $205,000; or $2,582,325 more than  would have been spent in the same period on the basis of appropriations for  1923 and the preceding years.  
1927-72	1927	The needs along health, educational, industrial and social lines however,  are great, and the Budget estimates for 1929 include still further  increases for Indian administration.  
1927-73	1927	To advance the time when the Indians may become self-sustaining, it is my  belief that the Federal Government should continue to improve the  facilities for their care, and as rapidly as possible turn its  responsibility over to the States.  
1927-74	1927	COAL  
1927-75	1927	Legislation authorizing a system of fuel administration and the appointment  by the President of a Board of Mediation and Conciliation in case of actual  or threatened interruption of production is needed. The miners themselves  are now seeking information and action from the Government, which could  readily be secured through such a board. It is believed that a thorough  investigation and reconsideration of this proposed policy by the Congress  will demonstrate that this recommendation is sound and should be adopted.  
1927-76	1927	PETROLEUM CONSERVATION  
1927-77	1927	The National Government is undertaking to join in the formation of a  cooperative committee of lawyers, engineers, and public officers, to  consider what legislation by the States or by the Congress can be adopted  for the preservation and conservation of our supply of petroleum. This has  come to be one of the main dependencies for transportation and power so  necessary to our agricultural and industrial life. It is expected the  report of this committee will be available for later congressional action.  Meantime, the requirement that the Secretary of the Interior should make  certain leases of land belonging to the Osage Indians, in accordance with  the act of March 3, 1921, should be repealed. The authority to lease should  be discretionary, in order that the property of the Indians way not be  wasted and the public suffer a future lack of supply.  
1927-78	1927	ALIEN PROPERTY  
1927-79	1927	Under treaty the property held by the Alien Property Custodian was to be  retained until suitable provision had been made for the satisfaction of  American claims. While still protecting the American claimants, in order to  afford every possible accommodation to the nationals of the countries whose  property was held, the Congress has made liberal provision for the return  of a larger part of the property. All trusts under $10,000 were returned in  full, and partial returns were made on the others. The total returned was  approximately $350,000,000.  
1927-80	1927	There is still retained, however, about $250,000,000. The Mixed Claims  Commission has made such progress in the adjudication of claims that  legislation can now be enacted providing for the return of the property,  which should be done under conditions which will protect our Government and  our claimants. Such a measure will be proposed, and I recommend its  enactment.  
1927-81	1927	RAILROAD CONSOLIDATION  
1927-82	1927	In order to increase the efficiency of transportation and decrease its cost  to the shipper, railroad consolidation must be secured. Legislation is  needed to simplify the necessary procedure to secure such agreements and  arrangements for consolidation, always under the control and with the  approval of the Interstate Commerce Commission. Pending this, no adequate  or permanent reorganization can be made of the freight-rate structure.  Meantime, both agriculture and industry are compelled to wait for needed  relief. This is purely a business question, which should be stripped of all  local and partisan bias and decided on broad principles and its merits in  order to promote the public welfare. A large amount of new construction and  equipment, which will furnish employment for labor and markets for  commodities of both factory and farm, wait on the decision of this  important question. Delay is holding back the progress of our country.  
1927-83	1927	Many of the same arguments are applicable to the consolidation of the  Washington traction companies.  
1927-84	1927	VETERANS  
1927-85	1927	The care which this country has lavished on its veterans is known of all  men. The yearly outlay for this purpose is about $750,000,000, or about the  cost of running the Federal Government, outside of the Post Office  Department, before the World War. The Congress will have before it  recommendations of the American Legion, the Veterans of Foreign Wars, and  other like organizations, which should receive candid consideration. We  should continue to foster our system of compensation and rehabilitation,  and provide hospitals and insurance. The magnitude of the undertaking is  already so large that all requests calling for further expenditure should  have the most searching scrutiny. Our present system of pensions is already  sufficiently liberal. It was increased by the last Congress for Civil and  Spanish War veterans and widows and for some dependents.  
1927-86	1927	It has been suggested that the various governmental agencies now dealing  with veterans' relief be consolidated. This would bring many advantages. It  is recommended that the proper committees of the Congress make a thorough  survey of this subject, in order to determine if legislation to secure such  consolidation is desirable.  
1927-87	1927	EDUCATION  
1927-88	1927	For many years it has been the policy of the Federal Government to  encourage and foster the cause of education. Large sums of money are  annually appropriated to carry on vocational training. Many millions go  into agricultural schools. The general subject is under the immediate  direction of a Commissioner of Education. While this subject is strictly a  State and local function, it should continue to have the encouragement of  the National Government. I am still of the opinion that much good could be  accomplished through the establishment of a Department of Education and  Relief, into which would be gathered all of these functions under one  directing member of the Cabinet.  
1927-89	1927	DEPARTMENT OF LABOR  
1927-90	1927	Industrial relations have never been more peaceful. In recent months they  have suffered from only one serious controversy. In all others difficulties  have been adjusted, both management and labor wishing to settle  controversies by friendly agreement rather than by compulsion. The welfare  of women and children is being especially guarded by our Department of  Labor. Its Children's Bureau is in cooperation with 26 State boards and 80  juvenile courts.  
1927-91	1927	Through its Bureau of Immigration it has been found that medical  examination abroad has saved prospective immigrants from much hardship.  Some further legislation to provide for reuniting families when either the  husband or the wife is in this country, and granting more freedom for the  migration of the North American Indian tribes is desirable.  
1927-92	1927	The United States Employment Service has enabled about 2,000,000 men and  women to gain paying positions in the last fiscal year. Particular  attention has been given to assisting men past middle life and in providing  field labor for harvesting agricultural crops. This has been made possible  in part through the service of the Federal Board for Vocational Education,  which is cooperating with the States in a program to increase the technical  knowledge and skill of the wage earner.  
1927-93	1927	PUBLIC BUILDINGS  
1927-94	1927	Construction is under way in the country and ground has been broken for  carrying out a public-building program for Washington. We have reached a  time when not only the conveniences but the architectural beauty of the  public buildings of the Capital City should be given much attention. It  will be necessary to purchase further land and provide the required  continuing appropriations.  
1927-95	1927	HISTORICAL CELEBRATIONS  
1927-96	1927	Provision is being made to commemorate the two hundredth anniversary of the  birth of George Washington. Suggestion has been made for the construction  of a memorial road leading from the Capital to Mount Vernon, which may well  have the consideration of the Congress, and the commission intrusted with  preparations for the celebration will undoubtedly recommend publication of  the complete writings of Washington and a series of writings by different  authors relating to him.  
1927-97	1927	February 25, 1929. is the one hundred and fiftieth anniversary of the  capture of Fort Sackville, at Vincennes, in the State of Indiana. This  eventually brought into the Union what was known as the Northwest  Territory, embracing the region north of the Ohio River between the  Alleghenies and the Mississippi River. This expedition was led by George  Rogers Clark. His heroic character and the importance of his victory are  too little known and understood. They gave us not only this Northwest  Territory but by means of that the prospect of reaching the Pacific. The  State of Indiana is proposing to dedicate the site of Fort Sackville as a  national shrine. The Federal Government may well make some provision for  the erection under its own management of a fitting memorial at that point.  
1927-98	1927	FOREIGN RELATIONS  
1927-99	1927	It is the policy of the United States to promote peace. We are a peaceful  people and committed to the settling of disputes by amicable adjustment  rather than by force. We have believed that peace can best be secured by a  faithful observance on our part of the principles of international law,  accompanied by patience and conciliation, and requiring of others a like  treatment for ourselves. We have lately had some difference with Mexico  relative to the injuries inflicted upon our nationals and their property  within that country. A firm adherence to our rights and a scrupulous  respect for the sovereignty of Mexico, both in accordance with the law of  nations, coupled with patience and forbearance, it is hoped will resolve  all our differences without interfering with the friendly relationship  between the two Governments.  
1927-100	1927	We have been compelled to send naval and marine forces to China to protect  the lives and property of our citizens. Fortunately their simple presence  there has been sufficient to prevent any material loss of life. But there  has been considerable loss of property. That unhappy country is torn by  factions and revolutions which bid fair to last for an indefinite period.  Meanwhile we are protecting our citizens and stand ready to cooperate with  any government which may emerge in promoting the welfare of the people of  China. They have always had our friendship, and they should especially  merit our consideration in these days of their distraction and distress.  
1927-101	1927	We were confronted by similar condition on a small scale in Nicaragua. Our  marine and naval forces protected our citizens and their property and  prevented a heavy sacrifice of life and the destruction of that country by  a reversion to a state of revolution. Henry L. Stimson, former Secretary of  War, was sent there to cooperate with our diplomatic and military officers  in effecting a settlement between the contending parties. This was done on  the assurance that we would cooperate in restoring a state of peace where  our rights would be protected by giving our assistance in the conduct of  the next presidential election, which occurs in a few months. With this  assurance the population returned to their peacetime pursuits, with the  exception of some small roving bands of outlaws.  
1927-102	1927	In general, our relations with other countries can be said to have improved  within the year. While having a due regard for our own affairs, the  protection of our own rights, and the advancement of our own people, we can  afford to be liberal toward others. Our example has become of great  importance in the world. It is recognized that we are independent,  detached, and can and do take a disinterested position in relation to  international affairs. Our charity embraces the earth. Our trade is far  flung. Our financial favors are widespread. Those who are peaceful and  law-abiding realize that not only have they nothing to fear from us, but  that they can rely on our moral support. Proposals for promoting the peace  of the world will have careful consideration. But we are not a people who  are always seeking for a sign. We know that peace comes from honesty and  fair dealing, from moderation, and a generous regard for the rights of  others. The heart of the Nation is more important than treaties. A spirit  of generous consideration is a more certain defense than great armaments.  We should continue to promote peace by our example, and fortify it by such  international covenants against war as we are permitted under our  Constitution to make.  
1927-103	1927	AMERICAN PROGRESS  
1927-104	1927	Our country has made much progress. But it has taken, and will continue to  take, much effort. Competition will be keen, the temptation to selfishness  and arrogance will be severe, the provocations to deal harshly with weaker  peoples will be many. All of these are embraced in the opportunity for true  greatness. They will be overbalanced by cooperation by generosity, and a  spirit of neighborly kindness. The forces of the universe are taking  humanity in that direction. In doing good, in walking humbly, in sustaining  its own people in ministering to other nations, America will work out its  own mighty destiny.  
1928-1	1928	To the Congress of the United States:  
1928-2	1928	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 appears at  the present time. In the domestic field there is tranquility and  contentment, harmonious relations between management and wage earner,  freedom from industrial strife, and the highest record of years 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 to the touch of manifest  friendship. The great wealth created by our enterprise and industry, and  saved by our economy, has had the widest distribution among our own people,  and has gone out in a steady stream to serve the charity and the business  of the world. The requirements of existence have passed beyond the standard  of necessity into the region of luxury. Enlarging production is consumed by  an increasing demand at home and an expanding commerce abroad. The country  can regard the present with satisfaction and anticipate the future with  optimism.  
1928-3	1928	The main source of these unexampled blessings lies in the integrity and  character of the American people. They have had great faith, which they  have supplemented with mighty works. They have been able to put trust in  each other and trust in their Government. Their candor in dealing with  foreign governments has commanded respect and confidence. Yet these  remarkable powers would have been exerted almost in vain without the  constant cooperation and careful administration of the Federal Government.  
1928-4	1928	We have been coming into a period which may be fairly characterized as a  conservation of our national resources. Wastefulness in public business and  private enterprise has been displaced by constructive economy. This has  been accomplished by bringing our domestic and foreign relations more and  more under a reign of law. A rule of force has been giving way to a rule of  reason. We have substituted for the vicious circle of increasing  expenditures, increasing tax rates, and diminishing profits the charmed  circle of diminishing expenditures, diminishing tax rates, and increasing  profits.  
1928-5	1928	Four times we have made a drastic revision of our internal revenue system,  abolishing many taxes and substantially reducing almost all others. Each  time the resulting stimulation to business has so increased taxable incomes  and profits that a surplus has been reduced. One-third of the national  debt has been paid, while much of the other two-thirds has been refunded at  lower rates, and these savings of interest and constant economies have  enabled us to repeat the satisfying process of more tax reductions. Under  this sound and healthful encouragement the national income has increased  nearly 50 per cent, until it is estimated to stand well over  $90,000,000,000. It gas been a method which has performed the seeming  miracle of leaving a much greater percentage of earnings in the hands of  the taxpayers with scarcely any diminution of the Government revenue. That  is constructive economy in the highest degree. It is the corner stone of  prosperity. It should not fail to be continued.  
1928-6	1928	This action began by the application of economy to public expenditure. If  it is to be permanent, it must be made so by the repeated application of  economy. 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 direction the departments began saving  all they could out of their present appropriations. The last tax reduction  brought 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 I percent on out, 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 provide for them by new revenue; otherwise, we  shall reach the end of the year with the unthinkable result of an unbalanced  budget. For the first time during my term of office we face that  contingency. I am certain that the Congress would not pass and I should not  feel warranted in approving legislation which would involve us in that  financial disgrace.  
1928-7	1928	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 will save about $75,000,000 a year in  interest. The unpaid balance has been arranged in maturities convenient  for carrying out our permanent debt-paying Program.  
1928-8	1928	The enormous savings made have not been at the expense of any legitimate  public need. The Government plant has been kept up and many improvements  are tinder way, while its service is fully manned and the general  efficiency of operation has increased. We have been enabled to undertake  many new enterprises. Among these are the adjusted compensation of the  veterans of the World War, which is costing us $112,000,000 a year;  amortizing our liability to the civil service retirement funds,  $20,000,000; increase of expenditures for rivers and harbors including  flood control, $43,000,000; public buildings, $47,000,000. In 1928 we spent  $50,000,000 in the adjustment of war claims and alien property. These are  examples of a large list of items.  
1928-9	1928	FOREIGN RELATIONS  
1928-10	1928	When we turn from our domestic affairs to our foreign relations, we  likewise perceive peace and progress. The Sixth International Conference of  American States was held at Habana last winter. It contributed to a better  understanding and cooperation among the nations'. Eleven important  conventions were signed and 71 resolutions passed. Pursuant to the plan  then adopted, this Government has invited the other 20 nations of this  hemisphere to it conference on conciliation and arbitration, which meets in  Washington on December 10. All the nations have accepted and the  expectation is justified that important progress will be made in methods  for resolving international differences by means of arbitration.  
1928-11	1928	During the year we have signed 11 new arbitration treaties, and 22 more are  tinder negotiation.  
1928-12	1928	NICARAGUA  
1928-13	1928	When a destructive and bloody revolution lately broke out in Nicaragua, at  the earnest and repeated entreaties of its Government I dispatched our  Marine forces there to protect the lives and interests of our citizens. To  compose the contending parties, I sent there Col. Henry L. Stimson, former  Secretary of War and now Governor General of the Philippine Islands, who  secured an agreement that warfare should cease, a national election should  be held and peace should be restored. Both parties conscientiously carried  out this agreement, with the exception of a few bandits who later mostly  surrendered or left the country. President Diaz appointed Brig. Gen. Frank  R. McCoy, United States Army, president of the election board, which  included also one member of each political party.  
1928-14	1928	A free and fair election has been held and has worked out so successfully  that both parties have joined in requesting like cooperation from this  country at the election four years hence, to which I have refrained from  making any commitments, although our country must be gratified at such an  exhibition of success and appreciation.  
1928-15	1928	Nicaragua is regaining its prosperity and has taken a long step in the  direction of peaceful self-government.  
1928-16	1928	TACNA-ARICA  
1928-17	1928	The long-standing differences between Chile and Peru have been sufficiently  composed so that diplomatic relations have been resumed by the exchange of  ambassadors. Negotiations are hopefully proceeding as this is written for  the final adjustment of the differences over their disputed territory.  
1928-18	1928	MEXICO  
1928-19	1928	Our relations with Mexico are on a more satisfactory basis than at any time  since their revolution. Many misunderstandings have been resolved and the  most frank and friendly negotiations promise a final adjustment of all  unsettled questions. It is exceedingly gratifying that Ambassador Morrow  has been able to bring our two neighboring countries, which have so many  interests in common, to a position of confidence in each other and of  respect for mutual sovereign rights.  
1928-20	1928	CHINA  
1928-21	1928	The situation in China which a few months ago was so threatening as to call  for the dispatch of a large additional force has, been much composed. The  Nationalist Government has established itself over the country and  promulgated a new organic law announcing a program intended to promote the  political and economic welfare of the people. We have recognized this  Government, encouraged its progress, and have negotiated a treaty  restoring to China complete tariff autonomy and guaranteeing our citizens  against discriminations. Our trade in that quarter is increasing and our  forces are being reduced.  
1928-22	1928	GREEK AND AUSTRIAN DEBTS  
1928-23	1928	Pending before the Congress is a recommendation for the settlement of the  Greek debt and the Austrian debt. Both of these are comparatively small and  our country can afford to be generous. The rehabilitation of these  countries 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 seeks. The Congress has already granted Austria a  long-time moratorium, 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.  
1928-24	1928	PEACE TREATY  
1928-25	1928	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 to which 44 other nations have declared their intention to adhere,  renouncing war as a national policy and agreeing to resort only to peaceful  means for the adjustment of international differences. It is the most  solemn declaration against war, the most positive adherence to peace, that  it is possible for sovereign nations to make. It does not supersede our  inalienable sovereign right and duty of national defense or undertake to  commit us before the event to any mode of action which the Congress might  decide to be wise if ever the treaty should be broken. But 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 covenant, so simple and so straightforward, promises more  for the peace of the world than any other agreement ever negotiated among  the nations.  
1928-26	1928	NATIONAL DEFENSE  
1928-27	1928	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  nations. The advancement of world civilization likewise is dependent upon  that order among the people of different countries which we term peace. To  insure our citizens against the infringement of their legal rights at home  and abroad, to preserve order, liberty, and peace by making the law  supreme, we have an Army and a Navy.  
1928-28	1928	Both of these are organized for defensive purposes. Our Army could not be  much reduced, but does not need to be increased. Such new housing and  repairs as are necessary are tinder way and the 6-year program in aviation  is being put into effect in both branches of our service.  
1928-29	1928	Our Navy, according to generally accepted 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 replacements must be provided.  This matter was thoroughly canvassed at the last session 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 needs for defense.  
1928-30	1928	The cost of national defense is stupendous. It has increased $118,000,000  in the past four years. The estimated expenditure for 1930 is $668,000,000.  While this is made up of many items it is, after all, mostly dependent upon  numbers. Our defensive needs do not can for any increase in the number of  men in the Army or the Navy. We have reached the limit of what we ought to  expend for that purpose.  
1928-31	1928	I wish to repeat again for the benefit of the timid and the suspicious that  this country is neither militaristic nor imperialistic. Many people at home  and abroad, who constantly make this charge, are the same ones who are even  more solicitous to have us extend assistance to foreign countries. When  such assistance is granted, the inevitable result is that we have foreign  interests. For us to refuse the customary support and protection of such  interests would be in derogation of the sovereignty of this Nation. Our  largest foreign interests are in the British Empire, France, and Italy.  Because we are constantly solicitous for those interests, I doubt if anyone  would suppose that those countries feel we harbor toward them any  militaristic or imperialistic design. As for smaller countries, we  certainly do not want any of them. We are more anxious than they are to have  their sovereignty respected. Our entire influence is in behalf of their  independence. Cuba stands as a witness to our adherence to this principle.  
1928-32	1928	The position of this Government relative to the limitation of armaments,  the results already secured, and the developments up to the present time  are so well known to the Congress that they do not require any restatement.  
1928-33	1928	VETERANS  
1928-34	1928	The magnitude of our present system of veterans' relief is without  precedent, and the results have been far-reaching. For years a service  pension has been granted to the Grand Army and lately to the survivors of  the Spanish-American War. At the time we entered the World War however,  Congress departed from the usual pension system followed by our  Government. Eleven years have elapsed since our laws were first enacted,  initiating a system of compensation, rehabilitation, hospitalization, and  insurance for the disabled of the World War and their dependents. The  administration of all the laws concerning relief has been a difficult  task, but it can safely be stated that these measures have omitted nothing  in their desire to deal generously and humanely. We should continue to  foster this system and provide all the facilities necessary for adequate  care. It is the conception 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.  
1928-35	1928	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 present legislation for  sonic time yet to come. Further amendments to the existing law will be  suggested by the American Legion, the Veterans of Foreign Wars of the  United States, the Disabled American Veterans of the World War, and other  like organizations, and it may be necessary for administrative purposes, or  in order to remove some existing inequalities in the present law, to make  further changes. I am sure that such recommendations its may be submitted  to the Congress will receive your careful consideration. But because of the  vast expenditure now being made, each year, with every assurance that it  will increase, and because of the great liberality of the existing law, the  proposal of any additional legislation dealing with this subject should  receive most searching scrutiny from the Congress.  
1928-36	1928	You are familiar with the suggestion that the various public agencies now  dealing with matters of veterans' relief be consolidated in one Government  department. Some advantages to this plan seem apparent, especially in the  simplification of administration find in the opportunity of bringing about  a greater uniformity in the application 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  consolidation is desirable.  
1928-37	1928	AGRICULTURE  
1928-38	1928	The past year has been marked by notable though not uniform improvement in  agriculture. The general purchasing power of farm products and the volume  of production have advanced. This means not only further progress, in  overcoming the price disparity 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.  
1928-39	1928	The livestock industry has attained the best balance for many years and is  prospering conspicuously. Dairymen, beef producers, and poultrymen are  receiving 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 a 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 somewhat 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 results  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.  
1928-40	1928	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 themselves, encouraged and assisted by wise  public policy. The Government has been, and must continue to be, alive to  the needs of agriculture.  
1928-41	1928	In the past eight years more constructive legislation of direct benefit to  agriculture has been adopted than during any other period. The Department  of Agriculture has been broadened and reorganized to insure greater  efficiency. The department is laying greater stress on the economic and  business phases of agriculture. It is lending every possible assistance to  cooperative marketing associations. Regulatory and research work have been  segregated in order that each field may be served more effectively.  
1928-42	1928	I can not too strongly commend, in the field of fact finding, the research  work of the Department of Agriculture and the State experiment stations.  The department now receives annually $4,000,000 more for research than in  1921. In addition, the funds paid to the States for experimentation  purposes under the Purnell Act constitute an annual increase in Federal  payments to State agricultural experiment stations of $2,400,000 over the  amount appropriated in 1921. The program of support for research may wisely  be continued 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 authorization by the Capper-Ketcham Act.  
1928-43	1928	THE SURPLUS PROBLEM  
1928-44	1928	While these developments in fundamental research, regulation, and  dissemination of agricultural information are of distinct help to  agriculture, additional effort is needed. The surplus problem demands  attention. As emphasized in my last message, the Government should assume  no responsibility in normal times for crop surplus clearly due to  overextended acreage. The Government should, however, provide reliable  information as a guide to private effort; and in this connection fundamental  research on prospective supply and demand, as a guide to production and  marketing, should be encouraged. Expenditure of public funds to bring in  more new land should have most searching scrutiny, so long as our farmers  face unsatisfactory prices for crops and livestock produced on land already  under cultivation.  
1928-45	1928	Every proper effort should be made to put land to uses for which it is  adapted. The reforestation of land best suited for timber production is  progressing and should be encouraged, and to this end the forest taxation  inquiry was instituted to afford a practical guide for public policy.  Improvement has been made in grazing regulation in the forest 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 eroding.  
1928-46	1928	Temporary expedients, though sometimes capable of appeasing the demands of  the moment, can not permanently solve the surplus problem and might  seriously aggravate it. Hence putting the Government directly into  business, subsidies, and price fixing, and the alluring promises of  political action as a substitute for private initiative, should be  avoided.  
1928-47	1928	The Government should aid in promoting orderly marketing and in handling  surpluses clearly due to weather and seasonal conditions. As a beginning  there should be created a Federal farm board consisting of able and  experienced men empowered to advise producers' associations in establishing  central agencies or stabilization corporations to handle surpluses, to seek  wore economical means of merchandising, and to aid the producer in securing  returns according to the a14 of his product. A revolving loan fund should  be provided for the necessary financing until these agencies shall have  developed means of financing their operations through regularly constituted  credit institutions. Such a bill should carry authority for raising the  money, by loans or otherwise, necessary to meet the expense, as the  Treasury has no surplus.  
1928-48	1928	Agriculture has lagged behind industry in achieving that unity of effort  which modern economic life demands. The cooperative movement, which is  gradually building the needed organization, is in harmony with public  interest and therefore merits public encouragement.  
1928-49	1928	THE RESPONSIBILITY OF THE STATES  
1928-50	1928	Important phases of public policy related to agriculture lie within the  sphere of the States. While successive reductions in Federal taxes have  relieved most farmers of direct taxes to the National Government, State and  local levies have become a serious burden. This problem needs immediate and  thorough study with a view to correction at the earliest possible moment.  It will have to be made largely by the States themselves.  
1928-51	1928	COMMERCE  
1928-52	1928	It is desirable that the Government continue its helpful attitude toward  American business. The activities of the Department of Commerce have  contributed largely to the present satisfactory position  in our international trade, which has reached about $9,000,000,000  annually. There should be no slackening of effort in that direction. It is  also important that the department's assistance to domestic commerce be  continued. There is probably no way in which the Government can aid sound  economic progress more effectively than by cooperation with our business  men to reduce wastes in distribution.  
1928-53	1928	COMMERCIAL AERONAUTICS  
1928-54	1928	Continued progress in civil aviation is most gratifying. Demands for  airplanes and motors have taxed both the industry and the licensing and  inspection service of the Department of Commerce to their capacity. While  the compulsory 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 anyone possessing the necessary  qualifications. State legislation, 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 development. Over 17,000 young men and women have  now applied for Federal air pilot's licenses or permits. More than 80 per  cent of them applied during the past year.  
1928-55	1928	Our national airway system exceeds 14,000 miles in length and has 7,500  miles lighted for night operations. Provision has been made for lighting  4,000 miles more during the current fiscal year and equipping an equal  mileage with radio facilities. Three-quarters of our people are now served  by these routes. With the rapid growth of air mail, express, and passenger  service, this new transportation medium is daily becoming 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.  
1928-56	1928	During the next fortnight this Nation 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 epoch-making achievement  belongs to a citizen of our own country, Orville Wright.  
1928-57	1928	CUBAN PARCEL POST  
1928-58	1928	I desire to repeat my recommendation of an earlier message, that Congress  enact the legislation necessary to make permanent the Parcel Post  Convention with Cuba, both as a facility to American commerce and as a  measure 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.  
1928-59	1928	"MAINE" BATTLESHIP MEMORIAL  
1928-60	1928	When I attended the Pan American Conference at Habana, the President of  Cuba showed me a marble statue made from the original memorial that was  overturned 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 appreciation 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 accepting it. There is no location in the  White House for placing so large and heavy a structure, and I therefore  urge the Congress to provide by law for some locality where it can be  set up.  
1928-61	1928	RAILROADS  
1928-62	1928	In previous annual messages I have suggested the enactment of laws to  promote railroad consolidation with the 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, vet the provisions of the act of 1920 have not been found fully  adequate to meet the needs of other methods of consolidation. 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 principle of the  Interstate Commerce Commission. It is to be hoped that this legislation may  be enacted at an early date.  
1928-63	1928	Experience has shown that the interstate commerce law requires definition  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 recommendations there made.  
1928-64	1928	MERCHANT MARINE  
1928-65	1928	The cost of maintaining the United States Government merchant fleet has  been steadily reduced. We have established American flag lines in foreign  trade where they had never before existed as a means of promoting commerce  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, under the  encouragement of the recent legislation passed by the Congress, give  promise of continued successful operation. Additional legislation from time  to time may be necessary to promote future advancement under private  control.  
1928-66	1928	Through the cooperation of the Post Office Department and the Shipping  Board long-term contracts are being made with American steamship lines for  carrying mail, which already promise the construction of 15 to 20 new  vessels and the gradual reestablishment of the American merchant marine as  a private enterprise. No action of the National Government has been so  beneficial to our shipping. The cost is being absorbed to a considerable  extent 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.  
1928-67	1928	INTER-AMERICAN HIGHWAY  
1928-68	1928	In my message last year I expressed the view that we should lend our  encouragement for more good roads to all the principal points on this  hemisphere South of the Rio Grande. My view has not changed.  
1928-69	1928	The Pan American 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 financing 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 life to accomplish this end.  We already furnish military and naval advisors, and following this  precedent we could draw competent men from these same sources and from the  Department of Agriculture.  
1928-70	1928	We should provide our southern neighbors, if they request it, with such  engineer advisors for the construction of roads and bridges. Private  interests should look with favor upon all reasonable loans sought by  these countries to open main lines of travel. Such assistance should be  given especially to any project for a highway designed to connect all the  countries on this hemisphere and thus facilitate, intercourse and closer  relations among, them.  
1928-71	1928	AIR MAIL SERVICE  
1928-72	1928	The friendly relations and the extensive, commercial intercourse with the  Western Hemisphere to the south of us are being further cemented by the  establishment 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 Caribbean under our own control. Additional  connections will be made at Colon with a route running down the west coast  of South America as far as Conception, Chile, and with the French air mail  at Paramaribo running down the eastern coast of South America. The air  service already spans our continent, with laterals running to Mexico and  Canada, and covering a daily flight of over 28,000 miles, with an average  cargo of 15 000 pounds.  
1928-73	1928	WATERWAYS  
1928-74	1928	Our river and harbor improvements are proceeding with vigor. In the past  few years Ave have increased the appropriation for this regular work  $28,000,000, besides what is to be expended on flood control. The total  appropriation for this year was over $91,000,000. The Ohio River is almost  ready for opening; work on the Missouri and other rivers is under way. In  accordance with the Mississippi flood law Army engineers are making  investigations and surveys on other streams throughout the country with a  view to flood control, navigation, waterpower, and irrigation. Our barrier  lines are being operated under generous appropriations, and negotiations  are developing relative to the St. Lawrence waterway. To Secure the largest  benefits from all these waterways joint rates must be established with the  railroads, preferably by agreement, but otherwise as a result of  congressional action.  
1928-75	1928	We have recently passed several river and harbor bills. The work ordered by  the Congress not, yet completed, will cost about $243,  
1928-76	1928	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 harbor legislation should be passed, as expenditures to put it into  effect would be four or five years away.  
1928-77	1928	IRRIGATION OF ARID LANDS  
1928-78	1928	For many years the Federal Government has been committed to the wise policy  of reclamation and irrigation. While it has met with some failures due to  unwise selection of projects and 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 advocate 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.  
1928-79	1928	Readjustments authorized by the reclamation relief act of May 25, 1926,  have given more favorable terms of repayment to settlers. These new  financial 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. Nevertheless, the demand for still  smaller yearly payments on some projects continues. These conditions should  have consideration in connection with any proposed new projects.  
1928-80	1928	COLORADO RIVER  
1928-81	1928	For several years the Congress has considered the erection of a dam on the  Colorado River for flood-control, irrigation, and domestic water purposes,  all of which ma properly be considered as Government functions. There would  be an incidental creation of water power which could be used for generating  electricity. As private enterprise can very well fill this field, there is  no need for the Government to go into it. It is unfortunate that the States  interested in this water have been unable to agree among themselves.  Nevertheless, any legislation should give every possible safeguard to the  present and prospective rights of each of them.  
1928-82	1928	The Congress will have before it, the detailed report of a special board  appointed to consider the engineering and economic feasibility of this  project. From the short summary which I have seen of it, 11 judge they  consider the engineering problems can be met at somewhat increased cost  over previous estimates. 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 can not be established with certainty. So far as I can  judge, however, from the summary, their conclusions appear sufficiently  favorable, so that I feel warranted in recommending a measure which will  protect the rights of the States, discharge the necessary Government  functions, and leave the electrical field to private enterprise.  
1928-83	1928	MUSCLE SHOALS  
1928-84	1928	The development of other methods of producing nitrates will probably render  this plant less important for that purpose than formerly. But we have it,  and I am told it still provides a practical method of making nitrates for  national defense and farm fertilizers. By dividing the property into its  two component parts of power and nitrate plants it would be possible to  dispose of the power, reserving the right to any concern 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 return in rental  about $2,000,000 per year. If the Congress would giant the Secretary of War  authority to lease the nitrate plant on such terms as would insure the  largest production of nitrates, the entire property could begin to  function. Such a division, I am aware, has never seemed to appeal to the  Congress. I should also gladly approve a bill granting authority to lease  the entire property for the production of nitrates.  
1928-85	1928	I wish to avoid building another dam at public expense. Future operators  should provide for that themselves. 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 lessened. Nor do I think  this property should be made a vehicle for putting the United States  Government indiscriminately into the private and retail field of power  distribution and nitrate sales.  
1928-86	1928	CONSERVATION  
1928-87	1928	The practical application of economy to the resources of the country calls  for conservation. This does not mean that every resource should not be  developed to its full degree, but it 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  transportation. The Secretary of the Interior should not be compelled to  lease oil lands of the Osage Indians when the market is depressed and the  future supply is in jeopardy.  
1928-88	1928	While the area of lands remaining in public ownership is small, compared  with the vast area in private ownership, the natural resources of those in  public ownership are of immense present and future value. This is  particularly trite as to minerals and water power. The proper bureaus have  been classifying these resources to the end that they may be conserved.  Appropriate estimates are being submitted, in the Budget, for the further  prosecution of this important work.  
1928-89	1928	IMMIGRATION  
1928-90	1928	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 essential to new industries. The reuniting  of families should be expedited. Our immigration and naturalization laws  might well be codified.  
1928-91	1928	WAGE EARNER  
1928-92	1928	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 conception that the only limit to profits 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 darkened by the theory that  only by limiting individual production can there be any assurance of  permanent employment for increasing numbers, but in general, management and  wage earner alike have become emancipated from this doom and have entered a  new era in industrial thought which has unleashed the productive capacity  of the individual worker with an increasing scale of wages and profits, the  end of which is not yet. The application of this theory accounts for our  widening distribution of wealth. No discovery ever did more to increase the  happiness and prosperity of the people.  
1928-93	1928	Since 1922 increasing production has increased wages in general 12.9 per  cent, while in certain selected trades they have run as 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 prospered like others. As the rise in living costs in this period is  negligible, these figures represent real wage increases.  
1928-94	1928	The cause of constructive economy requires that the Government should  cooperate with private interests to eliminate the waste arising from  industrial accidents. This item, with all that has been done to reduce it,  still reaches enormous proportions with great suffering to the workman and  great loss to the country.  
1928-95	1928	WOMEN AND CHILDREN  
1928-96	1928	The Federal Government should continue its solicitous care for the  8,500,000 women wage earners and its efforts in behalf of public health,  which is reducing infant mortality and improving the bodily and mental  condition of our citizens.  
1928-97	1928	CIVIL SERVICE  
1928-98	1928	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  Actuaries on the retirement act shows by its report, that July 1, 1921 the  average salary of the 330,047 employees 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 years of nearly 53 per cent. On top  of this was the generous increase made at the last session of the Congress  generally applicable to Federal employees and another bill increasing the  pay in certain branches of the Postal Service beyond the large increase  which was made three years ago. This raised the average 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 privileges granted, a vacation of 30 actual  working days, or 5 weeks each year, with additional time running in some  departments as high as 30 days for sick leave and the generous provisions  of the retirement act. No other body of public servants ever occupied such  a fortunate position.  
1928-99	1928	EDUCATION  
1928-100	1928	Through the Bureau of Education of the Department of the Interior the  Federal Government, acting in an informative 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 Federal 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 present status of  negro higher education was determined and recommendations were made for its  advancement. This was one of the numerous cooperative undertakings of the  bureau. Following the invitation of the Association of Land Grant Colleges  and Universities, he Bureau of Education now has under way the survey of  agricultural colleges, 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 proposed to undertake a survey  of secondary schools, which educators insist is timely and essential.  
1928-101	1928	PUBLIC BUILDINGS  
1928-102	1928	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  addition 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 will be supplied with the most beautiful and  stately public buildings which adorn any capital in the world.  
1928-103	1928	THE AMERICAN INDIAN  
1928-104	1928	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  cooperative arrangement existing between the Bureau of Indian Affairs and  the Public Health Service should be extended. The Government's  responsibility to the American Indian has been acknowledged by annual  increases in appropriations to fulfill its obligations to them and to  hasten the time when Federal supervision of their affairs may be properly  and safely terminated. The movement in Congress and in some of the State  legislatures for extending responsibility in Indian affairs to States  should be encouraged. A complete participation by the Indian in our  economic life is the end to be desired.  
1928-105	1928	THE NEGRO  
1928-106	1928	For 65 years now our negro Population has been under the peculiar care and  solicitude of the National Government. 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 incidents in this period of world  history. They have demonstrated their ability to partake of the advantages  of our institutions 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 cooperation in the life of the Nation is  constantly enlarging.  
1928-107	1928	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 encouragement should be extended  for t le development of the race. The colored people have been the victims  of the crime of lynching, which has in late 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 Government can extend  under the Constitution.  
1928-108	1928	PHILIPPINE ISLANDS  
1928-109	1928	Under the guidance of Governor General Stimson the economic and political  conditions of the Philippine Islands have been raised to a standard never  before surpassed. The cooperation between his administration and the people  of the islands is complete and harmonious. It would be an advantage if  relief from double taxation could be granted by the Congress to our  citizens doing business in the islands.  
1928-110	1928	PORTO RICO  
1928-111	1928	Due to the terrific storm that swept Porto Rico last September, the people  of that island suffered large losses. The Red Cross and the War Department  went to their rescue. The property loss is being, retrieved. Sugar,  tobacco, citrus fruit, and coffee, all suffered damage. The first three can  largely look after themselves. The coffee growers will need some  assistance, which should be extended strictly on a business basis, and  only after most careful investigation. The people of Porto Rico are not  asking for charity.  
1928-112	1928	DEPARTMENT OF JUSTICE  
1928-113	1928	It is desirable that all the legal activities of the Government be  consolidated under 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 legislation creating  law officers or departmental action, additional legal positions not under  the supervision of the Attorney General have been provided until there are  now over 900. Such a condition is as harmful to the interest of the  Government now as it was in 1870, and should be corrected by appropriate  legislation.  
1928-114	1928	SPECIAL GOVERNMENT COUNSEL  
1928-115	1928	In order to prosecute the oil cases, I suggested and the Congress enacted a  law providing for the appointment of two special counsel. They have pursued  their work with signal ability, recovering all the leased lands besides  nearly $30,000,000 in money, and nearly $17,000,000 in other property. They  find themselves hampered 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 resign. No good  result is secured by the application of this rule to these counsel, and as  Mr. Roberts has consented to take reappointment if the rule is abrogated I  recommend the passage of an amendment to the law creating their office  exempting them from the general rule against taking other cases involving  the Government.  
1928-116	1928	PROHIBITION  
1928-117	1928	The country has duly adopted the eighteenth amendment. Those who object 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 enforcement bureau is making every effort to prevent  violations, especially through smuggling, manufacture, and transportation,  and to prosecute generally all violations for which it can secure evidence.  It is bound to continue this policy. Under the terms of the Constitution,  however, the obligation is equally on the States to exercise the power  which they have through the executive, legislative, judicial, and police  branches of their governments in behalf of enforcement. The Federal  Government is doing and will continue to do all it can in this direction  and is entitled to the active cooperation of the States.  
1928-118	1928	CONCLUSION  
1928-119	1928	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 case, but shall  continue to be required to spend our days in unremitting toil. The actions  of the Government must command the confidence of the country. Without this,  our prosperity 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.  
1928-120	1928	The end of government is to keep open the opportunity for a more  abundant life. Peace and prosperity are not finalities; they are only  methods. It is too easy under their influence for a nation to become  selfish and degenerate. This test has come to the United States. Our  country has been provided with the resources with which it can enlarge its  intellectual, moral, and spiritual life. The issue is in the hands of the  people. Our faith in man and God is the justification for the belief in our  continuing success.  
1929-1	1929	To the Senate and House of Representatives:  
1929-2	1929	The Constitution requires that the President "shall, from time to time,  give to the Congress information of the state of the Union, and recommend  to their consideration such measures as he shall judge necessary and  expedient." In complying with that requirement I wish to emphasize that  during the past year the Nation has continued to grow in strength; our  people have advanced in comfort; we have gained in knowledge; the education  of youth has been more widely spread; moral and spiritual forces have been  maintained; peace has become more assured. The problems with which we are  confronted are the problems of growth and of progress. In their solution we  have to determine the facts, to develop the relative importance to be  assigned to such facts, to formulate a common judgment upon them, and to  realize solutions in spirit of conciliation.  
1929-3	1929	FOREIGN RELATIONS  
1929-4	1929	We are not only at peace with all the world, but the foundations for future  peace are being substantially strengthened. To promote peace is our  long-established policy. Through the Kellogg-Briand pact a great moral  standard has been raised in the world. By it fifty-four nations have  covenanted to renounce war and to settle all disputes by pacific means.  Through it a new world outlook has been inaugurated which has profoundly  affected the foreign policies of nations. Since its inauguration we have  initiated new efforts not only in the organization of the machinery of  peace but also to eliminate dangerous forces which produce controversies  amongst nations.  
1929-5	1929	In January, 1926, the Senate gave its consent to adherence to the Court of  International Justice with certain reservations. In September of this year  the statute establishing the court has, by the action of the nations  signatory, been amended to meet the Senate's reservations and to go even  beyond those reservations to make clear that the court is a true  international court of justice. I believe it will be clear to everyone that  no controversy or question in which this country has or claims an interest  can be passed on by the court without our consent at the time the question  arises. The doubt about advisory opinions has been completely safeguarded.  Our adherence to the International Court is, as now constituted, not the  slightest step toward entry into the League of Nations. As I have before  indicated, I shall direct that our signature be affixed to the protocol of  adherence and shall submit it for the approval of the Senate with a special  message at some time when it is convenient to deal with it.  
1929-6	1929	In the hope of reducing friction in the world, and with the desire that we  may reduce the great economic burdens of naval armament, we have joined in  conference with Great Britain, France, Italy, and Japan to be held in  London in January to consider the further limitation and reduction of naval  arms. We hold high hopes that success may attend this effort.  
1929-7	1929	At the beginning of the present administration the neighboring State of  Mexico was best with domestic insurrection. We maintained the embargo upon  the shipment of arms to Mexico but permitted the duly constituted  Government to procure supplies from our surplus war stocks. Fortunately,  the Mexican Government by its own strength successfully withstood the  insurrection with but slight damage. Opportunity of further peaceful  development is given to that country. At the request of the Mexican  Government, we have since lifted the embargo on shipment of arms  altogether. The two governments have taken further steps to promote  friendly relationships and so solve our differences. Conventions prolonging  for a period of two years the life of the general and special claims  commissions have been concluded.  
1929-8	1929	In South America we are proud to have had part in the settlement of the  long-standing dispute between Chile and Peru in the disposal of the  question of Tacna-Arica.  
1929-9	1929	The work of the commission of inquiry and conciliation between Bolivia and  Paraguay, in which a representative of this Government participated, has  successfully terminated an incident which seemed to threaten war. The  proposed plan for final settlement as suggested by the neutral governments  is still under consideration.  
1929-10	1929	This Government has continued its efforts to act as a mediator in boundary  difficulties between Guatemala and Honduras.  
1929-11	1929	A further instance of profound importance in establishing good will was the  inauguration of regular air mail service between the United States and  Caribbean, Central American, and South American countries.  
1929-12	1929	We still have marines on foreign soil--in Nicaragua, Haiti, and China. In  the large sense we do not wish to be represented abroad in such manner.  About 1,600 marines remain in Nicaragua at the urgent request of that  government and the leaders of all parties pending the training of a  domestic constabulary capable of insuring tranquility. We have already  reduced these forces materially and we are anxious to withdraw them further  as the situation warrants. In Haiti we have about 700 marines, but it is a  much more difficult problem, the solution of which is still obscure. If  Congress approves, I shall dispatch a commission to Haiti to review and  study the matter in an endeavor to arrive at some more definite policy than  at present. Our forces in China constitute 2,605 men, which we hope also  further to reduce to the normal legation guard.  
1929-13	1929	It is my desire to establish more firmly our understanding and  relationships with the Latin American countries by strengthening the  diplomatic missions to those countries. It is my hope to secure men long  experienced in our Diplomatic Service, who speak the languages of the  peoples to whom they are accredited, as chiefs of our diplomatic missions  in these States. I shall send to the Senate at an early date the  nominations of several such men.  
1929-14	1929	The Congress has by numerous wise and foresighted acts in the past few  years greatly strengthened the character of our representation abroad. It  has made liberal provision for the establishment of suitable quarters for  our foreign staffs in the different countries. In order, however, that we  may further develop the most effective force in this, one of the most  responsible functions of our Government, I shall recommend to the Congress  more liberal appropriations for the work of the State Department. I know of  no expenditure of public money from which a greater economic and moral  return can come to us than by assuring the most effective conduct of our  foreign relations.  
1929-15	1929	NATIONAL DEFENSE  
1929-16	1929	To preserve internal order and freedom from encroachment is the first  purpose of government. Our Army and Navy are being maintained in a most  efficient state under officers of high intelligence and zeal. The extent  and expansion of their numbers and equipment as at present authorized are  ample for this purpose.  
1929-17	1929	We can well be deeply concerned, however, at the growing expense. From a  total expenditure for national defense purposes in 1914 of $267,000,000, it  naturally rose with the Great War, but receded again to $612,000,000 in  1924, when again it began to rise until during the current fiscal year the  expenditures will reach to over $730,000,000, excluding all civilian  services of those departments. Programs now authorized will carry it to  still larger figures in future years. While the remuneration paid to our  soldiers and sailors is justly at a higher rate than that of any other  country in the world, and while the cost of subsistence is higher, yet the  total of our expenditures is in excess of those of the most highly  militarized nations of the world.  
1929-18	1929	Upon the conference shortly to be held in London will depend such  moderation as we can make in naval expenditure. If we shall be compelled to  undertake the naval construction implied in the Washington arms treaty as  well as other construction which would appear to be necessary if no  international agreement can be completed, we shall be committed during the  next six years to a construction expenditure of upward of $1,200,000,000  besides the necessary further increase in costs for annual upkeep.  
1929-19	1929	After 1914 the various Army contingents necessarily expanded to the end of  the Great War and then receded to the low point in 1924, when expansion  again began. In 1914 the officers and men in our regular forces, both Army  and Navy, were about 164,000, in 1924 there were about 256,000, and in 1929  there were about 250,000. Our citizens' army, however, including the  National Guard and other forms of reserves, increase these totals up to  about 299,000 in 1914, about 672,000 in 1924, and about 728,000 in 1929.  
1929-20	1929	Under the Kellogg pact we have undertaken never to use war as an instrument  of national policy. We have, therefore, undertaken by covenant to use these  equipments solely for defensive purposes. From a defense point of view our  forces should be proportioned to national need and should, therefore, to  some extent be modified by the prospects of peace, which were never  brighter than to-day.  
1929-21	1929	It should be borne in mind that the improvement in the National Guard by  Federal support begun in 1920 has definitely strengthened our national  security by rendering them far more effective than ever heretofore. The  advance of aviation has also greatly increased our effectiveness in  defense. In addition to the very large program of air forces which we are  maintaining in the Army and Navy, there has been an enormous growth of  commercial aviation. This has provided unanticipated reserves in  manufacturing capacity and in industrial and air personnel, which again  adds to our security.  
1929-22	1929	I recommend that Congress give earnest consideration to the possibilities  of prudent action which will give relief from our continuously mounting  expenditures.  
1929-23	1929	FINANCES OF THE GOVERNMENT  
1929-24	1929	The finances of the Government are in sound condition. I shall submit the  detailed evidences and the usual recommendations in the special Budget  message. I may, however, summarize our position. The public debt on June 30  this year stood at $16,931,000,000, compared to the maximum in August,  1919, of $26,596,000,000. Since June 30 it has been reduced by a further  $238,000,000. In the Budget to be submitted the total appropriations  recommended for the fiscal year 1931 are $3,830,445,231, as compared to  $3,976,141,651 for the present fiscal year. The present fiscal year,  however, includes $150,000,000 for the Federal Farm Board, as to which no  estimate can as yet be determined for 1931.  
1929-25	1929	Owing to the many necessary burdens assumed by Congress in previous years  which now require large outlays, it is with extreme difficulty that we  shall be able to keep the expenditures for the next fiscal year within the  bounds of the present year. Economies in many directions have permitted  some accommodation of pressing needs, the net result being an increase, as  shown above, of about one-tenth of 1 per cent above the present fiscal  year. We can not fail to recognize the obligations of the Government in  support of the public welfare but we must coincidentally bear in mind the  burden of taxes and strive to find relief through some tax reduction. Every  dollar so returned fertilizes the soil of prosperity.  
1929-26	1929	TAX REDUCTION  
1929-27	1929	The estimate submitted to me by the Secretary of the Treasury and the  Budget Director indicates that the Government will close the fiscal year  1930 with a surplus of about $225,000,000 and the fiscal year 1931 with a  surplus of about $123,000,000. Owing to unusual circumstances, it has been  extremely difficult to estimate future revenues with accuracy.  
1929-28	1929	I believe, however, that the Congress will be fully justified in giving the  benefits of the prospective surpluses to the taxpayers, particularly as  ample provision for debt reduction has been made in both years through the  form of debt retirement from ordinary revenues. In view of the uncertainty  in respect of future revenues and the comparatively small size of the  indicated surplus in 1931, relief should take the form of a provisional  revision of tax rates.  
1929-29	1929	I recommend that the normal income tax rates applicable to the incomes of  individuals for the calendar year 1929 be reduced from 5, 3, and 1 1/2;  per cent, to 4, 2, and 1/2; per cent, and that the tax on the income of  corporations for the calendar year 1929 be reduced from 12 to 11 per cent.  It is estimated that this will result in a reduction of $160,000,000 in  income taxes to be collected during the calendar year 1930. The loss in  revenue will be divided approximately equally between the fiscal years 1930  and 1931. Such a program will give a measure of tax relief to the maximum  number of taxpayers, with relatively larger benefits to taxpayers with  small or moderate incomes.  
1929-30	1929	FOREIGN DEBTS  
1929-31	1929	The past year has brought us near to completion of settlements of the  indebtedness of foreign governments to the United States.  
1929-32	1929	The act of Congress approved February 4, 1929, authorized the settlement  with the Government of Austria along lines similar to the terms of  settlement offered by that Government to its other relief creditors. No  agreement has yet been concluded with that government, but the form of  agreement has been settled and its execution only awaits the Government of  Austria securing the assent by all the other relief creditors of the terms  offered. The act of Congress approved February 14, 1929, authorized the  settlement with the Government of Greece, and an agreement was concluded on  May 10, 1929.  
1929-33	1929	The Government of France ratified the agreement with us on July 27, 1929.  This agreement will shortly be before the Congress and I recommend its  approval.  
1929-34	1929	The only indebtedness of foreign governments to the United States now  unsettled is that of Russia and Armenia.  
1929-35	1929	During the past year a committee of distinguished experts under American  leadership submitted a plan looking to a revision of claims against Germany  by the various Governments. The United States denied itself any  participation in the war settlement of general reparations and our claims  are comparatively small in amount. They arise from costs of the army of  occupation and claims of our private citizens for losses under awards from  the Mixed Claims Commission established under agreement with the German  Government. In finding a basis for settlement it was necessary for the  committee of experts to request all the Governments concerned to make some  contribution to the adjustment and we have felt that we should share a  proportion of the concessions made.  
1929-36	1929	The State and Treasury Departments will be in a position shortly to submit  for your consideration a draft of an agreement to be executed between the  United States and Germany providing for the payments of these revised  amounts. A more extensive statement will be submitted at that time.  
1929-37	1929	The total amount of indebtedness of the various countries to the United  States now funded is $11,579,465,885. This sum was in effect provided by  the issue of United States Government bonds to our own people. The payments  of the various Governments to us on account of principal and interest for  1930 are estimated at a total of about $239,000,000, for 1931 at about  $236,000,000, for 1932 at about $246,000,000. The measure of American  compromise in these settlements may be appreciated from the fact that our  taxpayers are called upon to find annually about $475,000,000 in interest  and in addition to redeem the principal of sums borrowed by the United  States Government for these purposes.  
1929-38	1929	ALIEN ENEMY PROPERTY  
1929-39	1929	The wise determination that this property seized in war should be returned  to its owners has proceeded with considerable rapidity. Of the original  seized cash and property (valued at a total of about $625,000,000), all but  $111,566,700 has been returned. Most of the remainder should be disposed of  during the next year.  
1929-40	1929	GENERAL ECONOMIC SITUATION  
1929-41	1929	The country has enjoyed a large degree of prosperity and sound progress  during the past year with a steady improvement in methods of production and  distribution and consequent advancement in standards of living. Progress  has, of course, been unequal among industries, and some, such as coal,  lumber, leather, and textiles, still lag behind. The long upward trend of  fundamental progress, however, gave rise to over-optimism as to profits,  which translated itself into a wave of uncontrolled speculation in  securities, resulting in the diversion of capital from business to the  stock market and the inevitable crash. The natural consequences have been a  reduction in the consumption of luxuries and semi-necessities by those who  have met with losses, and a number of persons thrown temporarily out of  employment. Prices of agricultural products dealt in upon the great markets  have been affected in sympathy with the stock crash.  
1929-42	1929	Fortunately, the Federal reserve system had taken measures to strengthen  the position against the day when speculation would break, which together  with the strong position of the banks has carried the whole credit system  through the crisis without impairment. The capital which has been hitherto  absorbed in stock-market loans for speculative purposes is now returning to  the normal channels of business. There has been no inflation in the prices  of commodities; there has been no undue accumulation of goods, and foreign  trade has expanded to a magnitude which exerts a steadying influence upon  activity in industry and employment.  
1929-43	1929	The sudden threat of unemployment and especially the recollection of the  economic consequences of previous crashes under a much less secured  financial system created unwarranted pessimism and fear. It was recalled  that past storms of similar character had resulted in retrenchment of  construction, reduction of wages, and laying off of workers. The natural  result was the tendency of business agencies throughout the country to  pause in their plans and proposals for continuation and extension of their  businesses, and this hesitation unchecked could in itself intensify into a  depression with widespread unemployment and suffering.  
1929-44	1929	I have, therefore, instituted systematic, voluntary measures of cooperation  with the business institutions and with State and municipal authorities to  make certain that fundamental businesses of the country shall continue as  usual, that wages and therefore consuming power shall not be reduced, and  that a special effort shall be made to expand construction work in order to  assist in equalizing other deficits in employment. Due to the enlarged  sense of cooperation and responsibility which has grown in the business  world during the past few years the response has been remarkable and  satisfactory. We have canvassed the Federal Government and instituted  measures of prudent expansion in such work that should be helpful, and upon  which the different departments will make some early recommendations to  Congress.  
1929-45	1929	I am convinced that through these measures we have reestablished  confidence. Wages should remain stable. A very large degree of industrial  unemployment and suffering which would otherwise have occurred has been  prevented. Agricultural prices have reflected the returning confidence. The  measures taken must be vigorously pursued until normal conditions are  restored.  
1929-46	1929	AGRICULTURE  
1929-47	1929	The agricultural situation is improving. The gross farm income as estimated  by the Department of Agriculture for the crop season 1926-27 was  $12,100,000,000; for 1927-28 it was $12,300,000,000; for 1928-29 it was  $12,500,000,000; and estimated on the basis of prices since the last  harvest the value of the 1929-30 crop would be over $12,650,000,000. The  slight decline in general commodity prices during the past few years  naturally assists the farmers' buying power.  
1929-48	1929	The number of farmer bankruptcies is very materially decreased below  previous years. The decline in land values now seems to be arrested and  rate of movement from the farm to the city has been reduced. Not all  sections of agriculture, of course, have fared equally, and some areas have  suffered from drought. Responsible farm leaders have assured me that a  large measure of confidence is returning to agriculture and that a feeling  of optimism pervades that industry.  
1929-49	1929	The most extensive action for strengthening the agricultural industry ever  taken by any government was inaugurated through the farm marketing act of  June 15 last. Under its provisions the Federal Farm Board has been  established, comprised of men long and widely experienced in agriculture  and sponsored by the farm organizations of the country. During its short  period of existence the board has taken definite steps toward a more  efficient organization of agriculture, toward the elimination of waste in  marketing, and toward the upbuilding of farmers' marketing organizations on  sounder and more efficient lines. Substantial headway has been made in the  organization of four of the basic commodities--grain, cotton, livestock,  and wool. Support by the board to cooperative marketing organizations and  other board activities undoubtedly have served to steady the farmers'  market during the recent crisis and have operated also as a great stimulus  to the cooperative organization of agriculture. The problems of the  industry are most complex, and the need for sound organization is  imperative. Yet the board is moving rapidly along the lines laid out for it  in the act, facilitating the creation by farmers of farmer-owned and  farmer-controlled organizations and federating them into central  institutions, with a view to increasing the bargaining power of  agriculture, preventing and controlling surpluses, and mobilizing the  economic power of agriculture.  
1929-50	1929	THE TARIFF  
1929-51	1929	The special session of Congress was called to expedite the fulfillment of  party pledges of agricultural relief and the tariff. The pledge of farm  relief has been carried out. At that time I stated the principles upon  which I believed action should be taken in respect to the tariff: "An  effective tariff upon agricultural products, that will compensate the  farmer's higher costs and higher standards of living, has a dual purpose.  Such a tariff not only protects the farmer in our domestic market but it  also stimulates him to diversify his crops and to grow products that he  could not otherwise produce, and thus lessens his dependence upon exports  to foreign markets. The great expansion of production abroad under the  conditions I have mentioned renders foreign competition in our export  markets increasingly serious. It seems but natural, therefore, that the  American farmer, having been greatly handicapped in his foreign market by  such competition from the younger expanding countries, should ask that  foreign access to our domestic market should be regulated by taking into  account the differences in our costs of production.  
1929-52	1929	"In considering the tariff for other industries than agriculture, we find  that there have been economic shifts necessitating a readjustment of some  of the tariff schedules. Seven years of experience under the tariff bill  enacted in 1922 have demonstrated the wisdom of Congress in the enactment  of that measure. On the whole it has worked well. In the main our wages  have been maintained at high levels; our exports and imports have steadily  increased; with some exceptions our manufacturing industries have been  prosperous. Nevertheless, economic changes have taken place during that  time which have placed certain domestic products at a disadvantage and new  industries have come into being, all of which create the necessity for some  limited changes in the schedules and in the administrative clauses of the  laws as written in 1922.  
1929-53	1929	"It would seem to me that the test of necessity for revision is, in the  main, whether there has been a substantial slackening of activity in an  industry during the past few years, and a consequent decrease of employment  due to insurmountable competition in the products of that industry. It is  not as if we were setting up a new basis of protective duties. We did that  seven years ago. What we need to remedy now is whatever substantial loss of  employment may have resulted from shifts since that time.  
1929-54	1929	"In determining changes in our tariff we must not fail to take into account  the broad interests of the country as a whole, and such interests include  our trade relations with other countries." No condition has arisen in my  view to change these principles stated at the opening of the special  session. I am firmly of the opinion that their application to the pending  revision will give the country the kind of a tariff law it both needs and  wants. It would be most helpful if action should be taken at an early  moment, more especially at a time when business and agriculture are both  cooperating to minimize future uncertainties. It is just that they should  know what the rates are to be.  
1929-55	1929	Even a limited revision requires the consideration and readjustment of many  items. The exhaustive inquiries and valuable debate from men representative  of all parts of the country which is needed to determine the detailed rates  must necessarily be accomplished in the Congress. However perfectly this  rate structure may be framed at any given time, the shifting of economic  forces which inevitably occurs will render changes in some items desirable  between the necessarily long intervals of congressional revision.  Injustices are bound to develop, such as were experienced by the dairymen,  the flaxseed producers, the glass industry, and others, under the 1922  rates. For this reason, I have been most anxious that the broad principle  of the flexible tariff as provided in the existing law should be preserved  and its delays in action avoided by more expeditious methods of determining  the costs of production at home and abroad, with executive authority to  promulgate such changes upon recommendation of the Tariff Commission after  exhaustive investigation. Changes by the Congress in the isolated items  such as those to which I have referred would have been most unlikely both  because of the concentrations of oppositions in the country, who could see  no advantage to their own industry or State, and because of the difficulty  of limiting consideration by the Congress to such isolated cases.  
1929-56	1929	There is no fundamental conflict between the interests of the farmer and  the worker. Lowering of the standards of living of either tends to destroy  the other. The prosperity of one rests upon the well-being of the other.  Nor is there any real conflict between the East and the West or the North  and the South in the United States. The complete interlocking of economic  dependence, the common striving for social and spiritual progress, our  common heritage as Americans, and the infinite web of national sentiment,  have created a solidarity in a great people unparalleled in all human  history. These invisible bonds should not and can not be shattered by  differences of opinion growing out of discussion of a tariff.  
1929-57	1929	PUBLIC BUILDINGS  
1929-58	1929	Under the provisions of various acts of Congress $300,000,000 has been  authorized for public buildings and the land upon which to construct them,  being $75,000,000 for the District of Columbia and $225,000,000 for the  country at large. Excluding $25,000,000 which is for the acquisition of  land in the so-called "triangle" in this city, this public building  legislation provides for a five-year program for the District of Columbia  and between an eight and nine year program for the country at large. Of  this sum approximately $27,400,000 was expended up to June 30 last, of  which $11,400,000 has been expended in the District and $16,000,000  outside.  
1929-59	1929	Even this generous provision for both the District of Columbia and the  country is insufficient For most pressing governmental needs. Expensive  rents and inadequate facilities are extravagance and not economy. In the  District even after the completion of these projects we shall have fully  20,000 clerks housed in rented and temporary war buildings which can last  but a little longer.  
1929-60	1929	I therefore recommend that consideration should be given to the extension  of authorizations both for the country at large and for the District of  Columbia again distributed over a term of years. A survey of the need in  both categories has been made by the Secretary of the Treasury and the  Postmaster General. It would be helpful in the present economic situation  if such steps were taken as would enable early construction work.  
1929-61	1929	An expedition and enlargement of the program in the District would bring  about direct economies in construction by enabling the erection of  buildings in regular sequence. By maintaining a stable labor force in the  city, contracts can be made on more advantageous terms.  
1929-62	1929	The earlier completion of this program which is an acknowledged need would  add dignity to the celebration in 1932 of the two hundredth anniversary of  the birth of President Washington.  
1929-63	1929	In consideration of these projects which contribute so much to dignify the  National Capital I should like to renew the suggestion that the Fine Arts  Commission should be required to pass upon private buildings which are  proposed for sites facing upon public buildings and parks. Without such  control much of the effort of the Congress in beautification of the Capital  will be minimized.  
1929-64	1929	THE WATERWAYS AND FLOOD CONTROL  
1929-65	1929	The development of inland waterways has received new impulse from the  completion during this year of the canalization of the Ohio to a uniform  9-foot depth. The development of the other segments of the Mississippi  system should be expedited and with this in view I am recommending an  increase in appropriations for rivers and harbors from $50,000,000 to  $55,000,000 per annum which, together with about $4,000,000 per annum  released by completion of the Ohio, should make available after providing  for other river and harbor works a sum of from $25,000,000 to $30,000,000  per annum for the Mississippi system and thus bring it to early  completion.  
1929-66	1929	Conflict of opinion which has arisen over the proposed floodway from the  Arkansas River to the Gulf of Mexico via the Atchafalaya River has led me  to withhold construction upon this portion of the Mississippi flood control  plan until it could be again reviewed by the engineers for any further  recommendation to Congress. The other portions of the project are being  vigorously prosecuted and I have recommended an increase in appropriations  for this from $30,000,000 of the present year to $35,000,000 during the  next fiscal year.  
1929-67	1929	Expansion of our intracoastal waterways to effective barge depths is well  warranted. We are awaiting the action of Canada upon the St. Lawrence  waterway project.  
1929-68	1929	HIGHWAYS  
1929-69	1929	There are over 3,000,000 miles of legally established highways in the  United States, of which about 10 per cent are included in the State highway  systems, the remainder being county and other local roads. About 626,000  miles have been improved with some type of surfacing, comprising some 63  per cent of the State highway systems and 16 per cent of the local roads.  Of the improved roads about 102,000 miles are hard surfaced, comprising  about 22 per cent of the State highway systems and about 8 per cent of the  local roads.  
1929-70	1929	While proper planning should materially reduce the listed mileage of public  roads, particularly in the agricultural districts, and turn these roads  back to useful purposes, it is evident that road construction must be a  long-continued program. Progress in improvement is about 50,000 miles of  all types per annum, of which some 12,000 miles are of the more durable  types. The total expenditures of Federal, State, and local governments last  year for construction and maintenance assumed the huge total of  $1,660,000,000.  
1929-71	1929	Federal aid in the construction of the highway systems in conjunction with  the States has proved to be beneficial and stimulating. We must ultimately  give consideration to the increase of our contribution to these systems,  particularly with a view to stimulating the improvement of farm-to-market  roads.  
1929-72	1929	POST OFFICE  
1929-73	1929	Our Post Office deficit has now increased to over $80,000,000 a year, of  which perhaps $14,000,000 is due to losses on ocean mail and air mail  contracts. The department is making an exhaustive study of the sources of  the deficit with view to later recommendation to Congress in respect to  it.  
1929-74	1929	The Post Office quarters are provided in part by the Federal construction,  in part by various forms of rent and lease arrangements. The practice has  grown up in recent years of contracting long term leases under which both  rent and amortization principal cost of buildings is included. I am advised  that fully 40 per cent could be saved from many such rent and lease  agreements even after allowing interest on the capital required at the  normal Government rate. There are also many objectionable features to some  of these practices. The provision of adequate quarters for the Post Office  should be put on a sound basis.  
1929-75	1929	A revision of air mail rates upon a more systematic and permanent footing  is necessary. The subject is under study, and if legislation should prove  necessary the subject will be presented to the Congress. In the meantime I  recommend that the Congress should consider the desirability of authorizing  further expansion of the South American services.  
1929-76	1929	COMMERCIAL AVIATION  
1929-77	1929	During the past year progress in civil aeronautics has been remarkable.  This is to a considerable degree due to the wise assistance of the Federal  Government through the establishment and maintenance of airways by the  Department of Commerce and the mail contracts from the Post Office  Department. The Government-improved airways now exceed 25,000 miles--more  than 14,000 miles of which will be lighted and equipped for night-flying  operations by the close of the current year. Airport construction through  all the States is extremely active. There are now 1,000 commercial and  municipal airports in operation with an additional 1,200 proposed for early  development.  
1929-78	1929	Through this assistance the Nation is building a sound aviation system,  operated by private enterprise. Over 6,400 planes are in commercial use,  and 9,400 pilots are licensed by the Government. Our manufacturing capacity  has risen to 7,500 planes per annum. The aviation companies have increased  regular air transportation until it now totals 90,000 miles per  day--one-fourth of which is flown by night. Mail and express services now  connect our principal cities, and extensive services for passenger  transportation have been inaugurated, and others of importance are  imminent. American air lines now reach into Canada and Mexico, to Cuba,  Porto Rico, Central America, and most of the important countries of South  America.  
1929-79	1929	RAILWAYS  
1929-80	1929	As a whole, the railroads never were in such good physical and financial  condition, and the country has never been so well served by them. The  greatest volume of freight traffic ever tendered is being carried at a  speed never before attained and with satisfaction to the shippers.  Efficiencies and new methods have resulted in reduction in the cost of  providing freight transportation, and freight rates show a continuous  descending line from the level enforced by the World War.  
1929-81	1929	We have, however, not yet assured for the future that adequate system of  transportation through consolidations which was the objective of the  Congress in the transportation act. The chief purpose of consolidation is  to secure well-balanced systems with more uniform and satisfactory rate  structure, a more stable financial structure, more equitable distribution  of traffic, greater efficiency, and single-line instead of multiple-line  hauls. In this way the country will have the assurance of better service  and ultimately at lower and more even rates than would otherwise be  attained. Legislation to simplify and expedite consolidation methods and  better to protect public interest should be enacted.  
1929-82	1929	Consideration should also be given to relief of the members of the  Commission from the necessity of detailed attention to comparatively  inconsequential matters which, under the existing law, must receive their  direct and personal consideration. It is in the public interest that the  members of the Commission should not be so pressed by minor matters that  they have inadequate time for investigation and consideration of the larger  questions committed to them for solution. As to many of these minor  matters, the function of the Commission might well be made revisory, and  the primary responsibility delegated to subordinate officials after the  practice long in vogue in the executive departments.  
1929-83	1929	MERCHANT MARINE  
1929-84	1929	Under the impulse of the merchant marine act of 1928 the transfer to  private enterprise of the Government-owned steamship lines is going forward  with increasing success. The Shipping Board now operates about 18 lines,  which is less than half the number originally established, and the estimate  of expenditures for the coming fiscal year is based upon reduction in  losses on Government lines by approximately one-half. Construction loans  have been made to the amount of approximately $75,000,000 out of the  revolving fund authorized by Congress and have furnished an additional aid  to American shipping and further stimulated the building of vessels in  American yards.  
1929-85	1929	Desirous of securing the full values to the Nation of the great effort to  develop our merchant marine by the merchant marine act soon after the  inauguration of the present administration, I appointed an  interdepartmental committee, consisting of the Secretary of Commerce, as  chairman, the Secretary of the Navy, the Postmaster General, and the  chairman of the Shipping Board, to make a survey of the policies being  pursued under the act of 1928 in respect of mail contracts; to inquire into  its workings and to advise the Postmaster General in the administration of  the act.  
1929-86	1929	In particular it seemed to me necessary to determine if the result of the  contracts already let would assure the purpose expressed in the act, "to  further develop an American merchant marine, to assure its permanence in  the transportation of the foreign trade of the United States, and for other  purposes," and to develop a coordinated policy by which these purposes may  be translated into actualities.  
1929-87	1929	In review of the mail contracts already awarded it was found that they  aggregated 25 separate awards imposing a governmental obligation of a  little over $12,000,000 per annum. Provision had been imposed in five of  the contracts for construction of new vessels with which to replace and  expand services. These requirements come to a total of 12 vessels in the  10-year period, aggregating 122,000 tons. Some other conditions in the  contracts had not worked out satisfactorily.  
1929-88	1929	That study has now been substantially completed and the committee has  advised the desirability and the necessity of securing much larger  undertakings as to service and new construction in future contracts. The  committee at this time is recommending the advertising of 14 additional  routes, making substantial requirements for the construction of new vessels  during the life of each contract recommended. A total of 40 new vessels  will be required under the contracts proposed, about half of which will be  required to be built during the next three years. The capital cost of this  new construction will be approximately $250,000,000, involving  approximately 460,000 gross tons. Should bidders be found who will make  these undertakings, it will be necessary to recommend to Congress an  increase in the authorized expenditure by the Post Office of about  $5,500,000 annually. It will be most advantageous to grant such an  authority.  
1929-89	1929	A conflict as to the administration of the act has arisen in the contention  of persons who have purchased Shipping Board vessels that they are entitled  to mail contracts irrespective of whether they are the lowest bidder, the  Post Office, on the other hand, being required by law to let contracts in  that manner. It is urgent that Congress should clarify this situation.  
1929-90	1929	THE BANKING SYSTEM  
1929-91	1929	It is desirable that Congress should consider the revision of some portions  of the banking law.  
1929-92	1929	The development of "group" and "chain" banking presents many new problems.  The question naturally arises as to whether if allowed to expand without  restraint these methods would dangerously concentrate control of credit,  and whether they would not in any event seriously threaten one of the  fundamentals of the American credit system--which is that credit which is  based upon banking deposits should be controlled by persons within those  areas which furnish these deposits and thus be subject to the restraints of  local interest and public opinion in those areas. To some degree, however,  this movement of chain or group banking is a groping for stronger support  to the banks and a more secure basis for these institutions.  
1929-93	1929	The growth in size and stability of the metropolitan banks is in marked  contrast to the trend in the country districts, with its many failures and  the losses these failures have imposed upon the agricultural community.  
1929-94	1929	The relinquishment of charters of national banks in great commercial  centers in favor of State charters indicates that some conditions surround  the national banks which render them unable to compete with State banks;  and their withdrawal results in weakening our national banking system.  
1929-95	1929	It has been proposed that permission should be granted to national banks to  engage in branch banking of a nature that would preserve within limited  regions the local responsibility and the control of such credit  institutions.  
1929-96	1929	All these subjects, however, require careful investigation, and it might be  found advantageous to create a joint commission embracing Members of the  Congress and other appropriate Federal officials for subsequent report.  
1929-97	1929	ELECTRICAL POWER REGULATION  
1929-98	1929	The Federal Power Commission is now comprised of three Cabinet officers,  and the duties involved in the competent conduct of the growing  responsibilities of this commission far exceed the time and attention which  these officials can properly afford from other important duties. I  recommended that authority be given for the appointment of full-time  commissioners to replace them.  
1929-99	1929	It is also desirable that the authority of the commission should be  extended to certain phases of power regulation. The nature of the electric  utilities industry is such that about 90 per cent of all power generation  and distribution is intrastate in character, and most of the States have  developed their own regulatory systems as to certificates of convenience,  rates, and profits of such utilities. To encroach upon their authorities  and responsibilities would be an encroachment upon the rights of the  States. There are cases, however, of interstate character beyond the  jurisdiction of the States. To meet these cases it would be most desirable  if a method could be worked out by which initial action may be taken  between the commissions of the States whose joint action should be made  effective by the Federal Power Commission with a reserve to act on its own  motion in case of disagreement or nonaction by the States.  
1929-100	1929	THE RADIO COMMISSION  
1929-101	1929	I recommend the reorganization of the Radio Commission into a permanent  body from its present temporary status. The requirement of the present law  that the commissioners shall be appointed from specified zones should be  abolished and a general provision made for their equitable selection from  different parts of the country. Despite the effort of the commissioners,  the present method develops a public insistence that the commissioners are  specially charged with supervision of radio affairs in the zone from which  each is appointed. As a result there is danger that the system will  degenerate from a national system into five regional agencies with varying  practices, varying policies, competitive tendencies, and consequent failure  to attain its utmost capacity for service to the people as a whole.  
1929-102	1929	MUSCLE SHOALS  
1929-103	1929	It is most desirable that this question should be disposed of. Under  present conditions the income from these plants is less than could  otherwise be secured for its use, and more especially the public is not  securing the full benefits which could be obtained from them.  
1929-104	1929	It is my belief that such parts of these plants as would be useful and the  revenues from the remainder should be dedicated for all time to the farmers  of the United States for investigation and experimentation on a commercial  scale in agricultural chemistry. By such means advancing discoveries of  science can be systematically applied to agricultural need, and development  of the chemical industry of the Tennessee Valley can be assured.  
1929-105	1929	I do not favor the operation by the Government of either power or  manufacturing business except as an unavoidable by-product of some other  major public purpose.  
1929-106	1929	Any form of settlement of this question will imply entering upon a contract  or contracts for the lease of the plants either as a whole or in parts and  the reservation of facilities, products, or income for agricultural  purposes. The extremely technical and involved nature of such contracts  dealing with chemical and electrical enterprises, added to the unusual  difficulties surrounding these special plants, and the rapid commercial  changes now in progress in power and synthetic nitrogen manufacture, lead  me to suggest that Congress create a special commission, not to investigate  and report as in the past, but with authority to negotiate and complete  some sort of contract or contracts on behalf of the Government, subject, of  course, to such general requirements as Congress may stipulate.  
1929-107	1929	BOULDER DAM  
1929-108	1929	The Secretary of the Interior is making satisfactory progress in  negotiation of the very complex contracts required for the sale of the  power to be generated at this project. These contracts must assure the  return of all Government outlays upon the project. I recommend that the  necessary funds be appropriated for the initiation of this work as soon as  the contracts are in the hands of Congress.  
1929-109	1929	CONSERVATION  
1929-110	1929	Conservation of national resources is a fixed policy of the Government.  Three important questions bearing upon conservation of the public lands  have become urgent.  
1929-111	1929	Conservation of our oil and gas resources against future need is a national  necessity. The working of the oil permit system in development of oil and  gas resources on the public domain has been subject to great abuse. I  considered it necessary to suspend the issuance of such permits and to  direct the review of all outstanding permits as to compliance of the  holders with the law. The purpose was not only to end such abuse but to  place the Government in position to review the entire subject.  
1929-112	1929	We are also confronted with a major problem in conservation due to the  overgrazing on public lands. The effect of overgrazing (which has now  become general) is not only to destroy the ranges but by impairing the  ground coverage seriously to menace the water supply in many parts of the  West through quick run-off, spring floods, and autumn drought.  
1929-113	1929	We have a third problem of major dimensions in the reconsideration of our  reclamation policy. The inclusion of most of the available lands of the  public domain in existing or planned reclamation projects largely completes  the original purpose of the Reclamation Service. There still remains the  necessity for extensive storage of water in the arid States which renders  it desirable that we should give a wider vision and purpose to this  service.  
1929-114	1929	To provide for careful consideration of these questions and also of better  division of responsibilities in them as between the State and Federal  Governments, including the possible transfer to the States for school  purposes of the lands unreserved for forests, parks, power, minerals, etc.,  I have appointed a Commission on Conservation of the Public Domain, with a  membership representing the major public land States and at the same time  the public at large. I recommend that Congress should authorize a moderate  sum to defray their expenses.  
1929-115	1929	SOCIAL SERVICE  
1929-116	1929	The Federal Government provides for an extensive and valuable program of  constructive social service, in education, home building, protection to  women and children, employment, public health, recreation, and many other  directions.  
1929-117	1929	In a broad sense Federal activity in these directions has been confined to  research and dissemination of information and experience, and at most to  temporary subsidies to the States in order to secure uniform advancement in  practice and methods. Any other attitude by the Federal Government will  undermine one of the most precious possessions of the American people; that  is, local and individual responsibility. We should adhere to this policy.  
1929-118	1929	Federal officials can, however, make a further and most important  contribution by leadership in stimulation of the community and voluntary  agencies, and by extending Federal assistance in organization of these  forces and bringing about cooperation among them.  
1929-119	1929	As an instance of this character, I have recently, in cooperation with the  Secretaries of Interior and Labor, laid the foundations of an exhaustive  inquiry into the facts precedent to a nation-wide White House conference on  child health and protection. This cooperative movement among interested  agencies will impose no expense upon the Government. Similar nation-wide  conferences will be called in connection with better housing and recreation  at a later date.  
1929-120	1929	In view of the considerable difference of opinion as to the policies which  should be pursued by the Federal Government with respect to education, I  have appointed a committee representative of the important educational  associations and others to investigate and present recommendations. In  cooperation with the Secretary of the Interior, I have also appointed a  voluntary committee of distinguished membership to assist in a nation-wide  movement for abolition of illiteracy.  
1929-121	1929	I have recommended additional appropriations for the Federal employment  service in order that it may more fully cover its cooperative work with  State and local services. I have also recommended additional appropriations  for the Women's and Children's Bureaus for much needed research as to facts  which I feel will prove most helpful.  
1929-122	1929	PUBLIC HEALTH  
1929-123	1929	The advance in scientific discovery as to disease and health imposes new  considerations upon us. The Nation as a whole is vitally interested in the  health of all the people; in protection from spread of contagious disease;  in the relation of physical and mental disabilities to criminality; and in  the economic and moral advancement which is fundamentally associated with  sound body and mind. The organization of preventive measures and health  education in its personal application is the province of public health  service. Such organization should be as universal as public education. Its  support is a proper burden upon the taxpayer. It can not be organized with  success, either in its sanitary or educational phases, except under public  authority. It should be based upon local and State responsibility, but I  consider that the Federal Government has an obligation of contribution to  the establishment of such agencies.  
1929-124	1929	In the practical working out of organization, exhaustive experiment and  trial have demonstrated that the base should be competent organization of  the municipality, county, or other local unit. Most of our municipalities  and some 400 rural counties out of 3,000 now have some such unit  organization. Where highly developed, a health unit comprises at least a  physician, sanitary engineer, and community nurse with the addition, in  some cases, of another nurse devoted to the problems of maternity and  children. Such organization gives at once a fundamental control of  preventive measures and assists in community instruction. The Federal  Government, through its interest in control of contagion, acting through  the United States Public Health Service and the State agencies, has in the  past and should in the future concern itself with this development,  particularly in the many rural sections which are unfortunately far behind  in progress. Some parts of the funds contributed under the Sheppard-Towner  Act through the Children's Bureau of the Department of Labor have also  found their way into these channels.  
1929-125	1929	I recommend to the Congress that the purpose of the Sheppard-Towner Act  should be continued through the Children's Bureau for a limited period of  years; and that the Congress should consider the desirability of confining  the use of Federal funds by the States to the building up of such county or  other local units, and that such outlay should be positively coordinated  with the funds expended through the United States Public Health Service  directed to other phases of the same county or other local unit  organization. All funds appropriated should of course be applied through  the States, so that the public health program of the county or local unit  will be efficiently coordinated with that of the whole State.  
1929-126	1929	FEDERAL PRISONS  
1929-127	1929	Closely related to crime conditions is the administration of the Federal  prison system. Our Federal penal institutions are overcrowded, and this  condition is daily becoming worse. The parole and probation systems are  inadequate. These conditions make it impossible to perform the work of  personal reconstruction of prisoners so as to prepare them for return to  the duties of citizenship. In order to relieve the pressing evils I have  directed the temporary transfer of the Army Disciplinary Barracks at  Leavenworth to the Department of Justice for use as a Federal prison. Not  only is this temporary but it is inadequate for present needs.  
1929-128	1929	We need some new Federal prisons and a reorganization of our probation and  parole systems; and there should be established in the Department of  Justice a Bureau of Prisons with a sufficient force to deal adequately with  the growing activities of our prison institutions. Authorization for the  improvements should be given speedily, with initial appropriations to allow  the construction of the new institutions to be undertaken at once.  IMMIGRATION  
1929-129	1929	Restriction of immigration has from every aspect proved a sound national  policy. Our pressing problem is to formulate a method by which the limited  number of immigrants whom we do welcome shall be adapted to our national  setting and our national needs.  
1929-130	1929	I have been opposed to the basis of the quotas now in force and I have  hoped that we could find some practical method to secure what I believe  should be our real national objective; that is, fitness of the immigrant as  to physique, character, training, and our need of service. Perhaps some  system of priorities within the quotas could produce these results and at  the same time enable some hardships in the present system to be cleared up.  I recommend that the Congress should give the subject further study, in  which the executive departments will gladly cooperate with the hope of  discovering such method as will more fully secure our national necessities.  VETERANS  
1929-131	1929	It has been the policy of our Government almost from its inception to make  provision for the men who have been disabled in defense of our country.  This policy should be maintained. Originally it took the form of land  grants and pensions. This system continued until our entry into the World  War. The Congress at that time inaugurated a new plan of compensation,  rehabilitation, hospitalization, medical care and treatment, and insurance,  whereby benefits were awarded to those veterans and their immediate  dependents whose disabilities were attributable to their war service. The  basic principle in this legislation is sound.  
1929-132	1929	In a desire to eliminate all possibilities of injustice due to difficulties  in establishing service connection of disabilities, these principles have  been to some degree extended. Veterans whose diseases or injuries have  become apparent within a brief period after the war are now receiving  compensation; insurance benefits have been liberalized. Emergency officers  are now receiving additional benefits. The doors of the Government's  hospitals have been opened to all veterans, even though their diseases or  injuries were not the result of their war service. In addition adjusted  service certificates have been issued to 3,433,300 veterans. This in itself  will mean an expenditure of nearly $3,500,000,000 before 1945, in addition  to the $600,000,000 which we are now appropriating annually for our  veterans' relief.  
1929-133	1929	The administration of all laws concerning the veterans and their dependents  has been upon the basis of dealing generously, humanely, and justly. While  some inequalities have arisen, substantial and adequate care has been given  and justice administered. Further improvement in administration may require  some amendment from time to time to the law, but care should be taken to  see that such changes conform to the basic principles of the legislation.  
1929-134	1929	I am convinced that we will gain in efficiency, economy, and more uniform  administration and better definition of national policies if the Pension  Bureau, the National Home for Volunteer Soldiers, and the Veterans' Bureau  are brought together under a single agency. The total appropriations to  these agencies now exceed $800,000,000 per annum.  
1929-135	1929	CIVIL SERVICE  
1929-136	1929	Approximately four-fifths of all the employees in the executive civil  service now occupy positions subject to competitive examination under the  civil service law.  
1929-137	1929	There are, however, still commanding opportunities for extending the  system. These opportunities lie within the province of Congress and not the  President. I recommend that a further step be taken by authorization that  appointments of third-class postmasters be made under the civil service  law.  
1929-138	1929	DEPARTMENTAL REORGANIZATION  
1929-139	1929	This subject has been under consideration for over 20 years. It was  promised by both political parties in the recent campaign. It has been  repeatedly examined by committees and commissions--congressional,  executive, and voluntary. The conclusions of these investigations have been  unanimous that reorganization is a necessity of sound administration; of  economy; of more effective governmental policies and of relief to the  citizen from unnecessary harassment in his relations with a multitude of  scattered governmental agencies. But the presentation of any specific plan  at once enlivens opposition from every official whose authority may be  curtailed or who fears his position is imperiled by such a result; of  bureaus and departments which wish to maintain their authority and  activities; of citizens and their organizations who are selfishly  interested, or who are inspired by fear that their favorite bureau may, in  a new setting, be less subject to their influence or more subject to some  other influence.  
1929-140	1929	It seems to me that the essential principles of reorganization are two in  number. First, all administrative activities of the same major purpose  should be placed in groups under single-headed responsibility; second, all  executive and administrative functions should be separated from boards and  commissions and placed under individual responsibility, while  quasi-legislative and quasi-judicial and broadly advisory functions should  be removed from individual authority and assigned to boards and  commissions. Indeed, these are the fundamental principles upon which our  Government was founded, and they are the principles which have been adhered  to in the whole development of our business structure, and they are the  distillation of the common sense of generations.  
1929-141	1929	For instance, the conservation of national resources is spread among eight  agencies in five departments. They suffer from conflict and overlap. There  is no proper development and adherence to broad national policies and no  central point where the searchlight of public opinion may concentrate  itself. These functions should be grouped under the direction of some such  official as an assistant secretary of conservation. The particular  department or cabinet officer under which such a group should be placed is  of secondary importance to the need of concentration. The same may be said  of educational services, of merchant marine aids, of public works, of  public health, of veterans' services, and many others, the component parts  of which are widely scattered in the various departments and independent  agencies. It is desirable that we first have experience with these  different groups in action before we create new departments. These may be  necessary later on.  
1929-142	1929	With this background of all previous experience I can see no hope for the  development of a sound reorganization of the Government unless Congress be  willing to delegate its authority over the problem (subject to defined  principles) to the Executive, who should act upon approval of a joint  committee of Congress or with the reservation of power of revision by  Congress within some limited period adequate for its consideration.  PROHIBITION  
1929-143	1929	The first duty of the President under his oath of office is to secure the  enforcement of the laws. The enforcement of the laws enacted to give effect  to the eighteenth amendment is far from satisfactory and this is in part  due to the inadequate organization of the administrative agencies of the  Federal Government. With the hope of expediting such reorganization, I  requested on June 6 last that Congress should appoint a joint committee to  collaborate with executive agencies in preparation of legislation. It would  be helpful if it could be so appointed. The subject has been earnestly  considered by the Law Enforcement Commission and the administrative  officials of the Government. Our joint conclusions are that certain steps  should be taken at once. First, there should be an immediate concentration  of responsibility and strengthening of enforcement agencies of the Federal  Government by transfer to the Department of Justice of the Federal  functions of detection and to a considerable degree of prosecution, which  are now lodged in the Prohibition Bureau in the Treasury; and at the same  time the control of the distribution of industrial alcohol and legalized  beverages should remain in the Treasury. Second, provision should be made  for relief of congestion in the Federal courts by modifying and simplifying  the procedure for dealing with the large volume of petty prosecutions under  various Federal acts. Third, there should be a codification of the laws  relating to prohibition to avoid the necessity which now exists of  resorting to more than 25 statutes enacted at various times over 40 years.  Technical defects in these statutes that have been disclosed should be  cured. I would add to these recommendations the desirability of  reorganizing the various services engaged in the prevention of smuggling  into one border patrol under the Coast Guard. Further recommendations upon  the subject as a whole will be developed after further examination by the  Law Enforcement Commission, but it is not to be expected that any criminal  law will ever be fully enforced so long as criminals exist.  
1929-144	1929	The District of Columbia should be the model of city law enforcement in the  Nation. While conditions here are much better than in many other cities,  they are far from perfect, and this is due in part to the congestion of  criminal cases in the Supreme Court of the District, resulting in long  delays. Furthermore, there is need for legislation in the District  supplementing the national prohibition act, more sharply defining and  enlarging the duties and powers of the District Commissioners and the  police of the District, and opening the way for better cooperation in the  enforcement of prohibition between the District officials and the  prohibition officers of the Federal Government. It is urgent that these  conditions be remedied.  
1929-145	1929	LAW ENFORCEMENT AND OBSERVANCE  
1929-146	1929	No one will look with satisfaction upon the volume of crime of all kinds  and the growth of organized crime in our country. We have pressing need so  to organize our system of administering criminal justice as to establish  full vigor and effectiveness. We need to reestablish faith that the highest  interests of our country are served by insistence upon the swift and  even-handed administration of justice to all offenders, whether they be  rich or poor. That we shall effect improvement is vital to the preservation  of our institutions. It is the most serious issue before our people.  
1929-147	1929	Under the authority of Congress I have appointed a National Commission on  Law Observance and Enforcement, for an exhaustive study of the entire  problem of the enforcement of our laws and the improvement of our judicial  system, including the special problems and abuses growing out of the  prohibition laws. The commission has been invited to make the widest  inquiry into the shortcomings of the administration of justice and into the  causes and remedies for them. It has organized its work under subcommittees  dealing with the many contributory causes of our situation and has enlisted  the aid of investigators in fields requiring special consideration. I am  confident that as a result of its studies now being carried forward it will  make a notable contribution to the solution of our pressing problems.  
1929-148	1929	Pending further legislation, the Department of Justice has been striving to  weed out inefficiency wherever it exists, to stimulate activity on the part  of its prosecuting officers, and to use increasing care in examining into  the qualifications of those appointed to serve as prosecutors. The  department is seeking systematically to strengthen the law enforcement  agencies week by week and month by month, not by dramatic displays but by  steady pressure; by removal of negligent officials and by encouragement and  assistance to the vigilant. During the course of these efforts it has been  revealed that in some districts causes contributing to the congestion of  criminal dockets, and to delays and inefficiency in prosecutions, have been  lack of sufficient forces in the offices of United States attorneys, clerks  of courts, and marshals. These conditions tend to clog the machinery of  justice. The last conference of senior circuit judges has taken note of  them and indorsed the department's proposals for improvement. Increases in  appropriations are necessary and will be asked for in order to reenforce  these offices.  
1929-149	1929	The orderly administration of the law involves more than the mere machinery  of law enforcement. The efficient use of that machinery and a spirit in our  people in support of law are alike essential. We have need for improvement  in both. However much we may perfect the mechanism, still if the citizen  who is himself dependent upon some laws for the protection of all that he  has and all that he holds dear, shall insist on selecting the particular  laws which he will obey, he undermines his own safety and that of his  country. His attitude may obscure, but it can not conceal, the ugly truth  that the lawbreaker, whoever he may be, is the enemy of society. We can no  longer gloss over the unpleasant reality which should be made vital in the  consciousness of every citizen, that he who condones or traffics with  crime, who is indifferent to it and to the punishment of the criminal, or  to the lax performance of official duty, is himself the most effective  agency for the breakdown of society.  
1929-150	1929	Law can not rise above its source in good citizenship--in what right-minded  men most earnestly believe and desire. If the law is upheld only by  Government officials, then all law is at an end. Our laws are made by the  people themselves; theirs is the right to work for their repeal; but until  repeal it is an equal duty to observe them and demand their enforcement.  
1929-151	1929	I have been gratified at the awakening sense of this responsibility in our  citizens during the past few months, and gratified that many instances have  occurred which refuted the cynicism which has asserted that our system  could not convict those who had defied the law and possessed the means to  resist its execution. These things reveal a moral awakening both in the  people and in officials which lies at the very foundation of the rule of  law.  
1929-152	1929	CONCLUSION  
1929-153	1929	The test of the rightfulness of our decisions must be whether we have  sustained and advanced the ideals of the American people; self-government  in its foundations of local government; justice whether to the individual  or to the group; ordered liberty; freedom from domination; open opportunity  and equality of opportunity; the initiative and individuality of our  people; prosperity and the lessening of poverty; freedom of public opinion;  education; advancement of knowledge; the growth of religious spirit; the  tolerance of all faiths; the foundations of the home and the advancement of  peace.  
1929-154	1929	The White House,  
1929-155	1929	December 3, 1929  
1930-1	1930	To the Senate and House of Representatives:  
1930-2	1930	I have the honor to comply with the requirement of the Constitution that I  should lay before the Congress information as to the state of the Union,  and recommend consideration of such measures as are necessary and  expedient.  
1930-3	1930	Substantial progress has been made during the year in national peace and  security; the fundamental strength of the Nation's economic life is  unimpaired; education and scientific discovery have made advances; our  country is more alive to its problems of moral and spiritual welfare.  
1930-4	1930	ECONOMIC SITUATION  
1930-5	1930	During the past 12 months we have suffered with other Nations from economic  depression.  
1930-6	1930	The origins of this depression lie to some extent within our own borders  through a speculative period which diverted capital and energy into  speculation rather than constructive enterprise. Had overspeculation in  securities been the only force operating, we should have seen recovery many  months ago, as these particular dislocations have generally readjusted  themselves.  
1930-7	1930	Other deep-seated causes have been in action, however, chiefly the  world-wide overproduction beyond even the demand of prosperous times for  such important basic commodities as wheat, rubber, coffee, sugar, copper,  silver, zinc, to some extent cotton, and other raw materials. The  cumulative effects of demoralizing price falls of these important  commodities in the process of adjustment of production to world consumption  have produced financial crises in many countries and have diminished the  buying power of these countries for imported goods to a degree which  extended the difficulties farther afield by creating unemployment in all  the industrial nations. The political agitation in Asia; revolutions in  South America and political unrest in some European States; the methods of  sale by Russia of her increasing agricultural exports to European markets;  and our own drought--have all contributed to prolong and deepen the  depression.  
1930-8	1930	In the larger view the major forces of the depression now lie outside of  the United States, and our recuperation has been retarded by the  unwarranted degree of fear and apprehension created by these outside  forces.  
1930-9	1930	The extent of the depression is indicated by the following approximate  percentages of activity during the past three months as compared with the  highly prosperous year of 1928:  
1930-10	1930	Value of department-store sales - 93% of 1928  
1930-11	1930	Volume of manufacturing production - 80% of 1928  
1930-12	1930	Volume of mineral production - 90% of 1928  
1930-13	1930	Volume of factory employment - 84% of 1928  
1930-14	1930	Total of bank deposits - 105% of 1928  
1930-15	1930	Wholesale prices--all commodities - 83% of 1928  
1930-16	1930	Cost of living - 94% of 1928  
1930-17	1930	Various other indexes indicate total decrease of activity from 1928 of from  15 to 20 per cent.  
1930-18	1930	There are many factors which give encouragement for the future. The fact  that we are holding from 80 to 85 per cent of our normal activities and  incomes; that our major financial and industrial institutions have come  through the storm unimpaired; that price levels of major commodities have  remained approximately stable for some time; that a number of industries  are showing signs of increasing demand; that the world at large is  readjusting itself to the situation; all reflect grounds for confidence. We  should remember that these occasions have been met many times before, that  they are but temporary, that our country is to-day stronger and richer in  resources, in equipment, in skill, than ever in its history. We are in an  extraordinary degree self-sustaining, we will overcome world influences and  will lead the march of prosperity as we have always done hitherto.  
1930-19	1930	Economic depression can not be cured by legislative action or executive  pronouncement. Economic wounds must be healed by the action of the cells of  the economic body--the producers and consumers themselves. Recovery can be  expedited and its effects mitigated by cooperative action. That cooperation  requires that every individual should sustain faith and courage; that each  should maintain his self-reliance; that each and every one should search  for methods of improving his business or service; that the vast majority  whose income is unimpaired should not hoard out of fear but should pursue  their normal living and recreations; that each should seek to assist his  neighbors who may be less fortunate; that each industry should assist its  own employees; that each community and each State should assume its full  responsibilities for organization of employment and relief of distress with  that sturdiness and independence which built a great Nation.  
1930-20	1930	Our people are responding to these impulses in remarkable degree. The best  contribution of government lies in encouragement of this voluntary  cooperation in the community. The Government, National, State, and local,  can join with the community in such programs and do its part. A year ago I,  together with other officers of the Government, initiated extensive  cooperative measures throughout the country.  
1930-21	1930	The first of these measures was an agreement of leading employers to  maintain the standards of wages and of labor leaders to use their influence  against strife. In a large sense these undertakings have been adhered to  and we have not witnessed the usual reductions of wages which have always  heretofore marked depressions. The index of union wage scales shows them to  be today fully up to the level of any of the previous three years. In  consequence the buying power of the country has been much larger than would  otherwise have been the case. Of equal importance the Nation has had  unusual peace in industry and freedom from the public disorder which has  characterized previous depressions.  
1930-22	1930	The second direction of cooperation has been that our governments,  National, State, and local, the industries and business so distribute  employment as to give work to the maximum number of employees.  
1930-23	1930	The third direction of cooperation has been to maintain and even extend  construction work and betterments in anticipation of the future. It has  been the universal experience in previous depressions that public works and  private construction have fallen off rapidly with the general tide of  depression. On this occasion, however, the increased authorization and  generous appropriations by the Congress and the action of States and  municipalities have resulted in the expansion of public construction to an  amount even above that in the most prosperous years. In addition the  cooperation of public utilities, railways, and other large organizations  has been generously given in construction and betterment work in  anticipation of future need. The Department of Commerce advises me that as  a result, the volume of this type of construction work, which amounted to  roughly $6,300,000,000 in 1929, instead of decreasing will show a total of  about $7,000,000,000 for 1930. There has, of course, been a substantial  decrease in the types of construction which could not be undertaken in  advance of need.  
1930-24	1930	The fourth direction of cooperation was the organization in such States and  municipalities, as was deemed necessary, of committees to organize local  employment, to provide for employment agencies, and to effect relief of  distress.  
1930-25	1930	The result of magnificent cooperation throughout the country has been that  actual suffering has been kept to a minimum during the past 12 months, and  our unemployment has been far less in proportion than in other large  industrial countries. Some time ago it became evident that unemployment  would continue over the winter and would necessarily be added to from  seasonal causes and that the savings of workpeople would be more largely  depleted. We have as a Nation a definite duty to see that no deserving  person in our country suffers from hunger or cold. I therefore set up a  more extensive organization to stimulate more intensive cooperation  throughout the country. There has been a most gratifying degree of  response, from governors, mayors, and other public officials, from welfare  organizations, and from employers in concerns both large and small. The  local communities through their voluntary agencies have assumed the duty of  relieving individual distress and are being generously supported by the  public.  
1930-26	1930	The number of those wholly out of employment seeking for work was  accurately determined by the census last April as about 2,500,000. The  Department of Labor index of employment in the larger trades shows some  decrease in employment since that time. The problem from a relief point of  view is somewhat less than the published estimates of the number of  unemployed would indicate. The intensive community and individual efforts  in providing special employment outside the listed industries are not  reflected in the statistical indexes and tend to reduce such published  figures. Moreover, there is estimated to be a constant figure at all times  of nearly 1,000,000 unemployed who are not without annual income but  temporarily idle in the shift from one job to another. We have an average  of about three breadwinners to each two families, so that every person  unemployed does not represent a family without income. The view that the  relief problems are less than the gross numbers would indicate is confirmed  by the experience of several cities, which shows that the number of  families in distress represents from 10 to 20 per cent of the number of the  calculated unemployed. This is not said to minimize the very real problem  which exists but to weigh its actual proportions.  
1930-27	1930	As a contribution to the situation the Federal Government is engaged upon  the greatest program of waterway, harbor, flood control, public building,  highway, and airway improvement in all our history. This, together with  loans to merchant shipbuilders, improvement of the Navy and in military  aviation, and other construction work of the Government will exceed  $520,000,000 for this fiscal year. This compares with $253,000,000 in the  fiscal year 1928. The construction works already authorized and the  continuation of policies in Government aid will require a continual  expenditure upwards of half a billion dollars annually.  
1930-28	1930	I favor still further temporary expansion of these activities in aid to  unemployment during this winter. The Congress will, however, have presented  to it numbers of projects, some of them under the guise of, rather than the  reality of, their usefulness in the increase of employment during the  depression. There are certain commonsense limitations upon any expansions  of construction work. The Government must not undertake works that are not  of sound economic purpose and that have not been subject to searching  technical investigation, and which have not been given adequate  consideration by the Congress. The volume of construction work in the  Government is already at the maximum limit warranted by financial prudence  as a continuing policy. To increase taxation for purposes of construction  work defeats its own purpose, as such taxes directly diminish employment in  private industry. Again any kind of construction requires, after its  authorization, a considerable time before labor can be employed in which to  make engineering, architectural, and legal preparations. Our immediate  problem is the increase of employment for the next six months, and new  plans which do not produce such immediate result or which extend  commitments beyond this period are not warranted.  
1930-29	1930	The enlarged rivers and harbors, public building, and highway plans  authorized by the Congress last session, however, offer an opportunity for  assistance by the temporary acceleration of construction of these programs  even faster than originally planned, especially if the technical  requirements of the laws which entail great delays could be amended in such  fashion as to speed up acquirements of land and the letting of contracts.  
1930-30	1930	With view, however, to the possible need for acceleration, we, immediately  upon receiving those authorities from the Congress five months ago, began  the necessary technical work in preparation for such possible eventuality.  I have canvassed the departments of the Government as to the maximum amount  that can be properly added to our present expenditure to accelerate all  construction during the next six months, and I feel warranted in asking the  Congress for an appropriation of from $100,000,000 to $150,000,000 to  provide such further employment in this emergency. In connection therewith  we need some authority to make enlarged temporary advances of  Federal-highway aid to the States.  
1930-31	1930	I recommend that this appropriation be made distributable to the different  departments upon recommendation of a committee of the Cabinet and approval  by the President. Its application to works already authorized by the  Congress assures its use in directions of economic importance and to public  welfare. Such action will imply an expenditure upon construction of all  kinds of over $650,000,000 during the next twelve months.  
1930-32	1930	AGRICULTURE  
1930-33	1930	The world-wide depression has affected agriculture in common with all other  industries. The average price of farm produce has fallen to about 80 per  cent of the levels of 1928. This average is, however, greatly affected by  wheat and cotton, which have participated in world-wide overproduction and  have fallen to about 60 per cent of the average price of the year 1928.  Excluding these commodities, the prices of all other agricultural products  are about 84 per cent of those of 1928. The average wholesale prices of  other primary goods, such as nonferrous metals, have fallen to 76 per cent  of 1928.  
1930-34	1930	The price levels of our major agricultural commodities are, in fact, higher  than those in other principal producing countries, due to the combined  result of the tariff and the operations of the Farm Board. For instance,  wheat prices at Minneapolis are about 30 per cent higher than at Winnipeg,  and at Chicago they are about 20 per cent higher than at Buenos Aires. Corn  prices at Chicago are over twice as high as at Buenos Aires. Wool prices  average more than 80 per cent higher in this country than abroad, and  butter is 30 per cent higher in New York City than in Copenhagen.  
1930-35	1930	Aside from the misfortune to agriculture of the world-wide depression we  have had the most severe drought. It has affected particularly the States  bordering on the Potomac, Ohio, and Lower Mississippi Rivers, with some  areas in Montana, Kansas, Oklahoma, and Texas. It has found its major  expression in the shortage of pasturage and a shrinkage in the corn crop  from an average of about 2,800,000,000 bushels to about 2,090,000,000  bushels.  
1930-36	1930	On August 14 I called a conference of the governors of the most acutely  affected States, and as a result of its conclusions I appointed a national  committee comprising the heads of the important Federal agencies under the  chairmanship of the Secretary of Agriculture. The governors in turn have  appointed State committees representative of the farmers, bankers, business  men, and the Red Cross, and subsidiary committees have been established in  most of the acutely affected counties. Railway rates were reduced on feed  and livestock in and out of the drought areas, and over 50,000 cars of such  products have been transported under these reduced rates. The Red Cross  established a preliminary fund of $5,000,000 for distress relief purposes  and established agencies for its administration in each county. Of this  fund less than $500,000 has been called for up to this time as the need  will appear more largely during the winter. The Federal Farm Loan Board has  extended its credit facilities, and the Federal Farm Board has given  financial assistance to all affected cooperatives.  
1930-37	1930	In order that the Government may meet its full obligation toward our  countrymen in distress through no fault of their own, I recommend that an  appropriation should be made to the Department of Agriculture to be loaned  for the purpose of seed and feed for animals. Its application should as  hitherto in such loans be limited to a gross amount to any one individual,  and secured upon the crop.  
1930-38	1930	The Red Cross can relieve the cases of individual distress by the  sympathetic assistance of our people.  
1930-39	1930	FINANCES OF THE GOVERNMENT  
1930-40	1930	I shall submit the detailed financial position of the Government with  recommendations in the usual Budget message. I will at this time, however,  mention that the Budget estimates of receipts and expenditures for the  current year were formulated by the Treasury and the Budget Bureau at a  time when it was impossible to forecast the severity of the business  depression and have been most seriously affected by it. At that time a  surplus of about $123,000,000 was estimated for this fiscal year and tax  reduction which affected the fiscal year to the extent of $75,000,000 was  authorized by the Congress, thus reducing the estimated surplus to about  $48,000,000. Closely revised estimates now made by the Treasury and the  Bureau of the Budget of the tax, postal, and other receipts for the current  fiscal year indicate a decrease of about $430,000,000 from the estimate of  a year ago, of which about $75,000,000 is due to tax reduction, leaving  about $355,000,000 due to the depression. Moreover, legislation enacted by  Congress subsequent to the submission of the Budget enlarging Federal  construction work to expand employment and for increase in veterans'  services and other items, have increased expenditures during the current  fiscal year by about $225,000,000.  
1930-41	1930	Thus the decrease of $430,000,000 in revenue and the increase of  $225,000,000 in expenditure adversely change the original Budget situation  by about $655,000,000. This large sum is offset by the original estimated  surplus a year ago of about $123,000,000, by the application of  $185,000,000 of interest payments upon the foreign debt to current  expenditures, by arrangements of the Farm Board through repayments, etc.,  in consequence of which they reduced their net cash demands upon the  Treasury by $100,000,000 in this period, and by about $67,000,000 economies  and deferments brought about in the Government, thus reducing the practical  effect of the change in the situation to an estimated deficit of about  $180,000,000 for the present fiscal year. I shall make suggestions for  handling the present-year deficit in the Budget message, but I do not favor  encroachment upon the statutory reduction of the public debt.  
1930-42	1930	While it will be necessary in public interest to further increase  expenditures during the current fiscal year in aid to unemployment by  speeding up construction work and aid to the farmers affected by the  drought, I can not emphasize too strongly the absolute necessity to defer  any other plans for increase of Government expenditures. The Budget for  1932 fiscal year indicates estimated expenditure of about $4,054,000,000,  including postal deficit. The receipts are estimated at about  $4,085,000,000 if the temporary tax reduction of last year be discontinued,  leaving a surplus of only about $30,000,000. Most rigid economy is  therefore necessary to avoid increase in taxes.  
1930-43	1930	NATIONAL DEFENSE  
1930-44	1930	Our Army and Navy are being maintained at a high state of efficiency, under  officers of high training and intelligence, supported by a devoted  personnel of the rank and file. The London naval treaty has brought  important economies in the conduct of the Navy. The Navy Department will  lay before the committees of the Congress recommendations for a program of  authorization of new construction which should be initiated in the fiscal  year of 1932.  
1930-45	1930	LEGISLATION  
1930-46	1930	This is the last session of the Seventy-first Congress. During its previous  sittings it has completed a very large amount of important legislation,  notably: The establishment of the Federal Farm Board; fixing congressional  reapportionment; revision of the tariff, including the flexible provisions  and a reorganization of the Tariff Commission; reorganization of the Radio  Commission; reorganization of the Federal Power Commission; expansion of  Federal prisons; reorganization of parole and probation system in Federal  prisons; expansion of veterans' hospitals; establishment of disability  allowances to veterans; consolidation of veteran activities; consolidation  and strengthening of prohibition enforcement activities in the Department  of Justice; organization of a Narcotics Bureau; large expansion of rivers  and harbors improvements; substantial increase in Federal highways;  enlargement of public buildings construction program; and the ratification  of the London naval treaty.  
1930-47	1930	The Congress has before it legislation partially completed in the last  sitting in respect to Muscle Shoals, bus regulation, relief of congestion  in the courts, reorganization of border patrol in prevention of smuggling,  law enforcement in the District of Columbia, and other subjects.  
1930-48	1930	It is desirable that these measures should be completed.  
1930-49	1930	The short session does not permit of extensive legislative programs, but  there are a number of questions which, if time does not permit action, I  recommend should be placed in consideration by the Congress, perhaps  through committees cooperating in some instances with the Federal  departments, with view to preparation for subsequent action. Among them are  the following subjects:  
1930-50	1930	ELECTRICAL POWER  
1930-51	1930	I have in a previous message recommended effective regulation of interstate  electrical power. Such regulation should preserve the independence and  responsibility of the States.  
1930-52	1930	RAILWAYS  
1930-53	1930	We have determined upon a national policy of consolidation of the railways  as a necessity of more stable and more economically operated  transportation. Further legislation is necessary to facilitate such  consolidation. In the public interest we should strengthen the railways  that they may meet our future needs.  
1930-54	1930	ANTITRUST LAWS  
1930-55	1930	I recommend that the Congress institute an inquiry into some aspects of the  economic working of these laws. I do not favor repeal of the Sherman Act.  The prevention of monopolies is of most vital public importance.  Competition is not only the basis of protection to the consumer but is the  incentive to progress. However, the interpretation of these laws by the  courts, the changes in business, especially in the economic effects upon  those enterprises closely related to the use of the natural resources of  the country, make such an inquiry advisable. The producers of these  materials assert that certain unfortunate results of wasteful and  destructive use of these natural resources together with a destructive  competition which impoverishes both operator and worker can not be remedied  because of the prohibitive interpretation of the antitrust laws. The  well-known condition of the bituminous coal industry is an illustration.  The people have a vital interest in the conservation of their natural  resources; in the prevention of wasteful practices; in conditions of  destructive competition which may impoverish the producer and the wage  earner; and they have an equal interest in maintaining adequate  competition. I therefore suggest that an inquiry be directed especially to  the effect of the workings of the antitrust laws in these particular fields  to determine if these evils can be remedied without sacrifice of the  fundamental purpose of these laws.  
1930-56	1930	CAPITAL-GAINS TAX  
1930-57	1930	It is urged by many thoughtful citizens that the peculiar economic effect  of the income tax on so-called capital gains at the present rate is to  enhance speculative inflation and likewise impede business recovery. I  believe this to be the case and I recommend that a study be made of the  economic effects of this tax and of its relation to the general structure  of our income tax law.  
1930-58	1930	IMMIGRATION  
1930-59	1930	There is need for revision of our immigration laws upon a more limited and  more selective basis, flexible to the needs of the country.  
1930-60	1930	Under conditions of current unemployment it is obvious that persons coming  to the United States seeking work would likely become either a direct or  indirect public charge. As a temporary measure the officers issuing visas  to immigrants have been, in pursuance of the law, instructed to refuse  visas to applicants likely to fall into this class. As a result the visas  issued have decreased from an average of about 24,000 per month prior to  restrictions to a rate of about 7,000 during the last month. These are  largely preferred persons under the law. Visas from Mexico are about 250  per month compared to about 4,000 previous to restrictions. The whole  subject requires exhaustive reconsideration.  
1930-61	1930	DEPORTATION OF ALIEN CRIMINALS  
1930-62	1930	I urge the strengthening of our deportation laws so as to more fully rid  ourselves of criminal aliens. Furthermore, thousands of persons have  entered the country in violation of the immigration laws. The very method  of their entry indicates their objectionable character, and our law-abiding  foreign-born residents suffer in consequence. I recommend that the Congress  provide methods of strengthening the Government to correct this abuse.  
1930-63	1930	POST OFFICE  
1930-64	1930	Due to deferment of Government building over many years, previous  administrations had been compelled to enter upon types of leases for  secondary facilities in large cities, some of which were objectionable as  representing too high a return upon the value of the property. To prevent  the occasion for further uneconomic leasing I recommend that the Congress  authorize the building by the Government of its own facilities.  
1930-65	1930	VETERANS  
1930-66	1930	The Nation has generously expanded its care for veterans. The consolidation  of all veterans' activities into the Veterans' Administration has produced  substantial administrative economies. The consolidation also brings  emphasis to the inequalities in service and allowances. The whole subject  is under study by the administrator, and I recommend it should also be  examined by the committees of the Congress.  
1930-67	1930	SOCIAL SERVICE  
1930-68	1930	I urge further consideration by the Congress of the recommendations I made  a year ago looking to the development through temporary Federal aid of  adequate State and local services for the health of children and the  further stamping out of communicable disease, particularly in the rural  sections. The advance of scientific discovery, methods, and social thought  imposes a new vision in these matters. The drain upon the Federal Treasury  is comparatively small. The results both economic and moral are of the  utmost importance.  
1930-69	1930	GENERAL  
1930-70	1930	It is my belief that after the passing of this depression, when we can  examine it in retrospect, we shall need to consider a number of other  questions as to what action may be taken by the Government to remove  Possible governmental influences which make for instability and to better  organize mitigation of the effect of depression. It is as yet too soon to  constructively formulate such measures.  
1930-71	1930	There are many administrative subjects, such as departmental  reorganization, extension of the civil service, readjustment of the postal  rates, etc., which at some appropriate time require the attention of the  Congress.  
1930-72	1930	FOREIGN RELATIONS  
1930-73	1930	Our relations with foreign countries have been maintained upon a high basis  of cordiality and good will.  
1930-74	1930	During the past year the London naval pact was completed, approved by the  Senate, and ratified by the governments concerned. By this treaty we have  abolished competition in the building of warships, have established the  basis of parity of the United States with the strongest of foreign powers,  and have accomplished a substantial reduction in war vessels.  
1930-75	1930	During the year there has been an extended political unrest in the world.  Asia continues in disturbed condition, and revolutions have taken place in  Brazil, Argentina, Peru, and Bolivia. Despite the jeopardy to our citizens  and their property which naturally arises in such circumstances, we have,  with the cooperation of the governments concerned, been able to meet all  such instances without friction.  
1930-76	1930	We have resumed normal relations with the new Governments of Brazil,  Argentina, Peru, and Bolivia immediately upon evidence that they were able  to give protection to our citizens and their property, and that they  recognized their international obligations.  
1930-77	1930	A commission which was supported by the Congress has completed its  investigation and reported upon our future policies in respect to Haiti and  proved of high value in securing the acceptance of these policies. An  election has been held and a new government established. We have replaced  our high commissioner by a minister and have begun the gradual withdrawal  of our activities with view to complete retirement at the expiration of the  present treaty in 1935.  
1930-78	1930	A number of arbitration and conciliation treaties have been completed or  negotiated during the year, and will be presented for approval by the  Senate.  
1930-79	1930	I shall, in a special message, lay before the Senate the protocols covering  the statutes of the World Court which have been revised to accord with the  sense of previous Senate reservations.  
1930-80	1930	The White House,  
1930-81	1930	December 2, 1930  
1931-1	1931	To the Senate and House of Representatives:  
1931-2	1931	It is my duty under the Constitution to transmit to the Congress  information on the state of the Union and to recommend for its  consideration necessary and expedient measures.  
1931-3	1931	The chief influence affecting the state of the Union during the past year  has been the continued world-wide economic disturbance. Our national  concern has been to meet the emergencies it has created for us and to lay  the foundations for recovery.  
1931-4	1931	If we lift our vision beyond these immediate emergencies we find  fundamental national gains even amid depression. In meeting the problems of  this difficult period, we have witnessed a remarkable development of the  sense of cooperation in the community. For the first time in the history of  our major economic depressions there has been a notable absence of public  disorders and industrial conflict. Above all there is an enlargement of  social and spiritual responsibility among the people. The strains and  stresses upon business have resulted in closer application, in saner  policies, and in better methods. Public improvements have been carried out  on a larger scale than even in normal times. The country is richer in  physical property, in newly discovered resources, and in productive  capacity than ever before. There has been constant gain in knowledge and  education; there has been continuous advance in science and invention;  there has been distinct gain in public health. Business depressions have  been recurrent in the life of our country and are but transitory. The  Nation has emerged from each of them with increased strength and virility  because of the enlightenment they have brought, the readjustments and the  larger understanding of the realities and obligations of life and work  which come from them.  
1931-5	1931	NATIONAL DEFENSE  
1931-6	1931	Both our Army and Navy have been maintained in a high state of efficiency.  The ability and devotion of both officers and men sustain the highest  traditions of the service. Reductions and postponements in expenditure of  these departments to meet the present emergency are being made without  reducing existing personnel or impairing the morale of either  establishment.  
1931-7	1931	The agreement between the leading naval powers for limitation of naval  armaments and establishment of their relative strength and thus elimination  of competitive building also implies for ourselves the gradual expansion of  the deficient categories in our Navy to the parities provided in those  treaties. However, none of the other nations, parties to these agreements,  is to-day maintaining the full rate of construction which the treaty size  of fleets would imply.  
1931-8	1931	Although these agreements secured the maximum reduction of fleets which it  was at that time possible to attain, I am hopeful that the naval powers,  party to these agreements, will realize that establishment of relative  strength in itself offers opportunity for further reduction without injury  to any of them. This would be the more possible if pending negotiations are  successful between France and Italy. If the world is to regain its  standards of life, it must further decrease both naval and other arms. The  subject will come before the General Disarmament Conference which meets in  Geneva on February 2.  
1931-9	1931	FOREIGN AFFAIRS  
1931-10	1931	We are at peace with the world. We have cooperated with other nations to  preserve peace. The rights of our citizens abroad have been protected.  
1931-11	1931	The economic depression has continued and deepened in every part of the  world during the past year. In many countries political instability,  excessive armaments, debts, governmental expenditures, and taxes have  resulted in revolutions, in unbalanced budgets and monetary collapse and  financial panics, in dumping of goods upon world markets, and in diminished  consumption of commodities.  
1931-12	1931	Within two years there have been revolutions or acute social disorders in  19 countries, embracing more than half the population of the world. Ten  countries have been unable to meet their external obligations. In 14  countries, embracing a quarter of the world's population, former monetary  standards have been temporarily abandoned. In a number of countries there  have been acute financial panics or compulsory restraints upon banking.  These disturbances have many roots in the dislocations from the World War.  Every one of them has reacted upon us. They have sharply affected the  markets and prices of our agricultural and industrial products. They have  increased unemployment and greatly embarrassed our financial and credit  system.  
1931-13	1931	As our difficulties during the past year have plainly originated in large  degree from these sources, any effort to bring about our own recuperation  has dictated the necessity of cooperation by us with other nations in  reasonable effort to restore world confidence and economic stability.  
1931-14	1931	Cooperation of our Federal reserve system and our banks with the central  banks in foreign countries has contributed to localize and ameliorate a  number of serious financial crises or moderate the pressures upon us and  thus avert disasters which would have affected us.  
1931-15	1931	The economic crisis in Germany and Central Europe last June rose to the  dimensions of a general panic from which it was apparent that without  assistance these nations must collapse. Apprehensions of such collapse had  demoralized our agricultural and security markets and so threatened other  nations as to impose further dangers upon us. But of highest importance was  the necessity of cooperation on our part to relieve the people of Germany  from imminent disasters and to maintain their important relations to  progress and stability in the world. Upon the initiative of this Government  a year's postponement of reparations and other intergovernmental debts was  brought about. Upon our further initiative an agreement was made by  Germany's private creditors providing for an extension of such credits  until the German people can develop more permanent and definite forms of  relief.  
1931-16	1931	We have continued our policy of withdrawing our marines from Haiti and  Nicaragua.  
1931-17	1931	The difficulties between China and Japan have given us great concern, not  alone for the maintenance of the spirit of the Kellogg-Briand Pact, but for  the maintenance of the treaties to which we are a party assuring the  territorial integrity of China. It is our purpose to assist in finding  solutions sustaining the full spirit of those treaties.  
1931-18	1931	I shall deal at greater length with our foreign relations in a later  message.  
1931-19	1931	THE DOMESTIC SITUATION  
1931-20	1931	Many undertakings have been organized and forwarded during the past year to  meet the new and changing emergencies which have constantly confronted us.  
1931-21	1931	Broadly the community has cooperated to meet the needs of honest distress,  and to take such emergency measures as would sustain confidence in our  financial system and would cushion the violence of liquidation in industry  and commerce, thus giving time for orderly readjustment of costs,  inventories, and credits without panic and widespread bankruptcy. These  measures have served those purposes and will promote recovery.  
1931-22	1931	In these measures we have striven to mobilize and stimulate private  initiative and local and community responsibility. There has been the least  possible Government entry into the economic field, and that only in  temporary and emergency form. Our citizens and our local governments have  given a magnificent display of unity and action, initiative and patriotism  in solving a multitude of difficulties and in cooperating with the Federal  Government.  
1931-23	1931	For a proper understanding of my recommendations to the Congress it is  desirable very briefly to review such activities during the past year.  
1931-24	1931	The emergencies of unemployment have been met by action in many directions.  The appropriations for the continued speeding up of the great Federal  construction program have provided direct and indirect aid to employment  upon a large scale. By organized unity of action, the States and  municipalities have also maintained large programs of public improvement.  Many industries have been prevailed upon to anticipate and intensify  construction. Industrial concerns and other employers have been organized  to spread available work amongst all their employees, instead of  discharging a portion of them. A large majority have maintained wages at as  high levels as the safe conduct of their business would permit. This course  has saved us from industrial conflict and disorder which have characterized  all previous depressions. Immigration has been curtailed by administrative  action. Upon the basis of normal immigration the decrease amounts to about  300,000 individuals who otherwise would have been added to our  unemployment. The expansion of Federal employment agencies under  appropriations by the Congress has proved most effective. Through the  President's organization for unemployment relief, public and private  agencies were successfully mobilized last winter to provide employment and  other measures against distress. Similar organization gives assurance  against suffering during the coming winter. Committees of leading citizens  are now active at practically every point of unemployment. In the large  majority they have been assured the funds necessary which, together with  local government aids, will meet the situation. A few exceptional  localities will be further organized. The evidence of the Public Health  Service shows an actual decrease of sickness and infant and general  mortality below normal years. No greater proof could be adduced that our  people have been protected from hunger and cold and that the sense of  social responsibility in the Nation has responded to the need of the  unfortunate.  
1931-25	1931	To meet the emergencies in agriculture the loans authorized by Congress for  rehabilitation in the drought areas have enabled farmers to produce  abundant crops in those districts. The Red Cross undertook and  magnificently administered relief for over 2,500,000 drought sufferers last  winter. It has undertaken this year to administer relief to 100,000  sufferers in the new drought area of certain Northwest States. The action  of the Federal Farm Board in granting credits to farm cooperatives saved  many of them from bankruptcy and increased their purpose and strength. By  enabling farm cooperatives to cushion the fall in prices of farm products  in 1930 and 1931 the Board secured higher prices to the farmer than would  have been obtained otherwise, although the benefits of this action were  partially defeated by continued world overproduction. Incident to this  action the failure of a large number of farmers and of country banks was  averted which could quite possibly have spread into a major disaster. The  banks in the South have cooperated with the Farm Board in creation of a  pool for the better marketing of accumulated cotton. Growers have been  materially assisted by this action. Constant effort has been made to reduce  overproduction in relief of agriculture and to promote the foreign buying  of agricultural products by sustaining economic stability abroad.  
1931-26	1931	To meet our domestic emergencies in credit and banking arising from the  reaction to acute crisis abroad the National Credit Association was set up  by the banks with resources of $500,000,000 to support sound banks against  the frightened withdrawals and hoarding. It is giving aid to reopen solvent  banks which have been closed. Federal officials have brought about many  beneficial unions of banks and have employed other means which have  prevented many bank closings. As a result of these measures the hoarding  withdrawals which had risen to over $250,000,000 per week after the British  crisis have substantially ceased.  
1931-27	1931	FURTHER MEASURES  
1931-28	1931	The major economic forces and weaknesses at home and abroad have now been  exposed and can be appraised, and the time is ripe for forward action to  expedite our recovery.  
1931-29	1931	Although some of the causes of our depression are due to speculation,  inflation of securities and real estate, unsound foreign investments, and  mismanagement of financial institutions, yet our self-contained national  economy, with its matchless strength and resources, would have enabled us  to recover long since but for the continued dislocations, shocks, and  setbacks from abroad.  
1931-30	1931	Whatever the causes may be, the vast liquidation and readjustments which  have taken place have left us with a large degree of credit paralysis,  which together with the situation in our railways and the conditions  abroad, are now the outstanding obstacles to recuperation. If we can put  our financial resources to work and can ameliorate the financial situation  in the railways, I am confident we can make a large measure of recovery  independent of the rest of the world. A strong America is the highest  contribution to world stability.  
1931-31	1931	One phase of the credit situation is indicated in the banks. During the  past year banks, representing 3 per cent of our total deposits have been  closed. A large part of these failures have been caused by withdrawals for  hoarding, as distinguished from the failures early in the depression where  weakness due to mismanagement was the larger cause of failure. Despite  their closing, many of them will pay in full. Although such withdrawals  have practically ceased, yet $1,100,000,000 of currency was previously  withdrawn which has still to return to circulation. This represents a large  reduction of the ability of our banks to extend credit which would  otherwise fertilize industry and agriculture. Furthermore, many of our  bankers, in order to prepare themselves to meet possible withdrawals, have  felt compelled to call in loans, to refuse new credits, and to realize upon  securities, which in turn has demoralized the markets. The paralysis has  been further augmented by the steady increase in recent years of the  proportion of bank assets invested in long-term securities, such as  mortgages and bonds. These securities tend to lose their liquidity in  depression or temporarily to fall in value so that the ability of the banks  to meet the shock of sudden withdrawal is greatly lessened and the  restriction of all kinds of credit is thereby increased. The continuing  credit paralysis has operated to accentuate the deflation and liquidation  of commodities, real estate, and securities below any reasonable basis of  values.  
1931-32	1931	All of this tends to stifle business, especially the smaller units, and  finally expresses itself in further depression of prices and values, in  restriction on new enterprise, and in increased unemployment.  
1931-33	1931	The situation largely arises from an unjustified lack of confidence. We  have enormous volumes of idle money in the banks and in hoarding. We do not  require more money or working capital--we need to put what we have to  work.  
1931-34	1931	The fundamental difficulties which have brought about financial strains in  foreign countries do not exist in the United States. No external drain on  our resources can threaten our position, because the balance of  international payments is in our favor; we owe less to foreign countries  than they owe to us; our industries are efficiently organized; our currency  and bank deposits are protected by the greatest gold reserve in history.  
1931-35	1931	Our first step toward recovery is to reestablish confidence and thus  restore the flow of credit which is the very basis of our economic life. We  must put some steel beams in the foundations of our credit structure. It is  our duty to apply the full strength of our Government not only to the  immediate phases, but to provide security against shocks and the repetition  of the weaknesses which have been proven.  
1931-36	1931	The recommendations which I here lay before the Congress are designed to  meet these needs by strengthening financial, industrial, and agricultural  life through the medium of our existing institutions, and thus to avoid the  entry of the Government into competition with private business.  
1931-37	1931	FEDERAL GOVERNMENT FINANCE  
1931-38	1931	The first requirement of confidence and of economic recovery is financial  stability of the United States Government. I shall deal with fiscal  questions at greater length in the Budget message. But I must at this time  call attention to the magnitude of the deficits which have developed and  the resulting necessity for determined and courageous policies. These  deficits arise in the main from the heavy decrease in tax receipts due to  the depression and to the increase in expenditure on construction in aid to  unemployment, aids to agriculture, and upon services to veterans.  
1931-39	1931	During the fiscal year ending June 30 last we incurred a deficit of about  $903,000,000, which included the statutory reduction of the debt and  represented an increase of the national debt by $616,000,000. Of this,  however, $153,000,000 is offset by increased cash balances.  
1931-40	1931	In comparison with the fiscal year 1928 there is indicated a fall in  Federal receipts for the present fiscal year amounting to $1,683,000,000,  of which $1,034,000,000 is in individual and corporate income taxes alone.  During this fiscal year there will be an increased expenditure, as compared  to 1928, on veterans of $255,000,000, and an increased expenditure on  construction work which may reach $520,000,000. Despite large economies in  other directions, we have an indicated deficit, including the statutory  retirement of the debt, of $2,123,000,000, and an indicated net debt  increase of about $1,711,000,000.  
1931-41	1931	The Budget for the fiscal year beginning July 1 next, after allowing for  some increase of taxes under the present laws and after allowing for  drastic reduction in expenditures, still indicates a deficit of  $1,417,000,000. After offsetting the statutory debt retirements this would  indicate an increase in the national debt for the fiscal year 1933 of about  $921,000,000.  
1931-42	1931	Several conclusions are inevitable. We must have insistent and determined  reduction in Government expenses. We must face a temporary increase in  taxes. Such increase should not cover the whole of these deficits or it  will retard recovery. We must partially finance the deficit by borrowing.  It is my view that the amount of taxation should be fixed so as to balance  the Budget for 1933 except for the statutory debt retirement. Such  Government receipts would assure the balance of the following year's budget  including debt retirement. It is my further view that the additional  taxation should be imposed solely as an emergency measure terminating  definitely two years from July 1 next. Such a basis will give confidence in  the determination of the Government to stabilize its finance and will  assure taxpayers of its temporary character. Even with increased taxation,  the Government will reach the utmost safe limit of its borrowing capacity  by the expenditures for which we are already obligated and the  recommendations here proposed. To go further than these limits in either  expenditures, taxes, or borrowing will destroy confidence, denude commerce  and industry of its resources, jeopardize the financial system, and  actually extend unemployment and demoralize agriculture rather than relieve  it.  
1931-43	1931	FEDERAL LAND BANKS  
1931-44	1931	I recommend that the Congress authorize the subscription by the Treasury of  further capital to the Federal land banks to be retired as provided in the  original act, or when funds are available, and that repayments of such  capital be treated as a fund available for further subscriptions in the  same manner. It is urgent that the banks be supported so as to stabilize  the market values of their bonds and thus secure capital for the farmers at  low rates, that they may continue their services to agriculture and that  they may meet the present situation with consideration to the farmers.  
1931-45	1931	DEPOSITS IN CLOSED BANKS  
1931-46	1931	A method should be devised to make available quickly to depositors some  portion of their deposits in closed banks as the assets of such banks may  warrant. Such provision would go far to relieve distress in a multitude of  families, would stabilize values in many communities, and would liberate  working capital to thousands of concerns. I recommend that measures be  enacted promptly to accomplish these results and I suggest that the  Congress should consider the development of such a plan through the Federal  Reserve Banks.  
1931-47	1931	HOME-LOAN DISCOUNT BANKS  
1931-48	1931	I recommend the establishment of a system of home-loan discount banks as  the necessary companion in our financial structure of the Federal Reserve  Banks and our Federal Land Banks. Such action will relieve present  distressing pressures against home and farm property owners. It will  relieve pressures upon and give added strength to building and loan  associations, savings banks, and deposit banks, engaged in extending such  credits. Such action would further decentralize our credit structure. It  would revive residential construction and employment. It would enable such  loaning institutions more effectually to promote home ownership. I  discussed this plan at some length in a statement made public November 14,  last. This plan has been warmly indorsed by the recent National Conference  upon Home Ownership and Housing, whose members were designated by the  governors of the States and the groups interested.  
1931-49	1931	RECONSTRUCTION FINANCE CORPORATION  
1931-50	1931	In order that the public may be absolutely assured and that the Government  may be in position to meet any public necessity, I recommend that an  emergency Reconstruction Corporation of the nature of the former War  Finance Corporation should be established. It may not be necessary to use  such an instrumentality very extensively. The very existence of such a  bulwark will strengthen confidence. The Treasury should be authorized to  subscribe a reasonable capital to it, and it should be given authority to  issue its own debentures. It should be placed in liquidation at the end of  two years. Its purpose is that by strengthening the weak spots to thus  liberate the full strength of the Nation's resources. It should be in  position to facilitate exports by American agencies; make advances to  agricultural credit agencies where necessary to protect and aid the  agricultural industry; to make temporary advances upon proper securities to  established industries, railways, and financial institutions which can not  otherwise secure credit, and where such advances will protect the credit  structure and stimulate employment. Its functions would not overlap those  of the National Credit Corporation.  
1931-51	1931	FEDERAL RESERVE ELIGIBILITY  
1931-52	1931	On October 6th I issued a statement that I should recommend to the Congress  an extension during emergencies of the eligibility provisions in the  Federal reserve act. This statement was approved by a representative  gathering of the Members of both Houses of the Congress, including members  of the appropriate committees. It was approved by the officials of the  Treasury Department, and I understand such an extension has been approved  by a majority of the governors of the Federal reserve banks. Nothing should  be done which would lower the safeguards of the system.  
1931-53	1931	The establishment of the mortgage-discount banks herein referred to will  also contribute to further reserve strength in the banks without  inflation.  
1931-54	1931	BANKING LAWS  
1931-55	1931	Our people have a right to a banking system in which their deposits shall  be safeguarded and the flow of credit less subject to storms. The need of a  sounder system is plainly shown by the extent of bank failures. I recommend  the prompt improvement of the banking laws. Changed financial conditions  and commercial practices must be met. The Congress should investigate the  need for separation between different kinds of banking; an enlargement of  branch banking under proper restrictions; and the methods by which enlarged  membership in the Federal reserve system may be brought about.  
1931-56	1931	POSTAL SAVINGS BANKS  
1931-57	1931	The Postal Savings deposits have increased from about $200,000,000 to about  $550,000,000 during the past year. This experience has raised important  practical questions in relation to deposits and investments which should  receive the attention of the Congress.  
1931-58	1931	RAILWAYS  
1931-59	1931	The railways present one of our immediate and pressing problems. They are  and must remain the backbone of our transportation system. Their prosperity  is interrelated with the prosperity of all industries. Their fundamental  service in transportation, the volume of their employment, their buying  power for supplies from other industries, the enormous investment in their  securities, particularly their bonds, by insurance companies, savings  banks, benevolent and other trusts, all reflect their partnership in the  whole economic fabric. Through these institutions the railway bonds are in  a large sense the investment of every family. The well-maintained and  successful operation and the stability of railway finances are of primary  importance to economic recovery. They should have more effective  opportunity to reduce operating costs by proper consolidation. As their  rates must be regulated in public interest, so also approximate regulation  should be applied to competing services by some authority. The methods of  their regulation should be revised. The Interstate Commerce Commission has  made important and far-reaching recommendations upon the whole subject,  which I commend to the early consideration of the Congress.  
1931-60	1931	ANTITRUST LAWS  
1931-61	1931	In my message of a year ago I commented on the necessity of congressional  inquiry into the economic action of the antitrust laws. There is wide  conviction that some change should be made especially in the procedure  under these laws. I do not favor their repeal. Such action would open wide  the door to price fixing, monopoly, and destruction of healthy competition.  Particular attention should be given to the industries rounded upon natural  resources, especially where destructive competition produces great wastes  of these resources and brings great hardships upon operators, employees,  and the public. In recent years there has been continued demoralization in  the bituminous coal, oil, and lumber industries. I again commend the matter  to the consideration of the Congress.  
1931-62	1931	UNEMPLOYMENT  
1931-63	1931	As an aid to unemployment the Federal Government is engaged in the greatest  program of public-building, harbor, flood-control, highway, waterway,  aviation, merchant and naval ship construction in all history. Our  expenditures on these works during this calendar year will reach about  $780,000,000 compared with $260,000,000 in 1928. Through this increased  construction, through the maintenance of a full complement of Federal  employees, and through services to veterans it is estimated that the  Federal taxpayer is now directly contributing to the livelihood of  10,000,000 of our citizens.  
1931-64	1931	We must avoid burdens upon the Government which will create more  unemployment in private industry than can be gained by further expansion of  employment by the Federal Government. We can now stimulate employment and  agriculture more effectually and speedily through the voluntary measures in  progress, through the thawing out of credit, through the building up of  stability abroad, through the home loan discount banks, through an  emergency finance corporation and the rehabilitation of the railways and  other such directions.  
1931-65	1931	I am opposed to any direct or indirect Government dole. The breakdown and  increased unemployment in Europe is due in part to such practices. Our  people are providing against distress from unemployment in true American  fashion by a magnificent response to public appeal and by action of the  local governments.  
1931-66	1931	GENERAL LEGISLATION  
1931-67	1931	There are many other subjects requiring legislative action at this session  of the Congress. I may list the following among them:  
1931-68	1931	VETERANS' SERVICES  
1931-69	1931	The law enacted last March authorizing loans of 50 per cent upon  adjusted-service certificates has, together with the loans made under  previous laws, resulted in payments of about $1,260,000,000. Appropriations  have been exhausted. The Administrator of Veterans' Affairs advises that a  further appropriation of $200,000,000 is required at once to meet the  obligations made necessary by existing legislation.  
1931-70	1931	There will be demands for further veterans' legislation; there are  inequalities in our system of veterans' relief; it is our national duty to  meet our obligations to those who have served the Nation. But our present  expenditure upon these services now exceeds $1,000,000,000 per annum. I am  opposed to any extension of these expenditures until the country has  recovered from the present situation.  
1931-71	1931	ELECTRICAL-POWER REGULATION  
1931-72	1931	I have recommended in previous messages the effective regulation of  interstate electrical power as the essential function of the reorganized  Federal Power Commission. I renew the recommendation. It is urgently needed  in public protection.  
1931-73	1931	MUSCLE SHOALS  
1931-74	1931	At my suggestion, the Governors and Legislatures of Alabama and Tennessee  selected three members each for service on a committee to which I appointed  a representative of the farm organizations and two representatives of the  War Department for the purpose of recommending a plan for the disposal of  these properties which would be in the interest of the people of those  States and the agricultural industry throughout the country. I shall  transmit the recommendations to the Congress.  
1931-75	1931	REORGANIZATION OF FEDERAL DEPARTMENTS  
1931-76	1931	I have referred in previous messages to the profound need of further  reorganization and consolidation of Federal administrative functions to  eliminate overlap and waste, and to enable coordination and definition of  Government policies now wholly impossible in scattered and conflicting  agencies which deal with parts of the same major function. I shall lay  before the Congress further recommendations upon this subject, particularly  in relation to the Department of the Interior. There are two directions of  such reorganization, however, which have an important bearing upon the  emergency problems with which we are confronted.  
1931-77	1931	SHIPPING BOARD  
1931-78	1931	At present the Shipping Board exercises large administrative functions  independent of the Executive. These administrative functions should be  transferred to the Department of Commerce, in keeping with that single  responsibility which has been the basis of our governmental structure since  its foundation. There should be created in that department a position of  Assistant Secretary for Merchant Marine, under whom this work and the  several bureaus having to do with merchant marine may be grouped.  
1931-79	1931	The Shipping Board should be made a regulatory body acting also in advisory  capacity on loans and policies, in keeping with its original conception.  Its regulatory powers should be amended to include regulation of coastwise  shipping so as to assure stability and better service. It is also worthy of  consideration that the regulation of rates and services upon the inland  waterways should be assigned to such a reorganized board.  
1931-80	1931	REORGANIZATION OF PUBLIC WORKS ADMINISTRATION  
1931-81	1931	I recommend that all building and construction activities of the Government  now carried on by many departments be consolidated into an independent  establishment under the President to be known as the "Public Works  Administration" directed by a Public Works Administrator. This agency  should undertake all construction work in service to the different  departments of the Government (except naval and military work). The  services of the Corps of Army Engineers should be delegated in rotation for  military duty to this administration in continuation of their supervision  of river and harbor work. Great economies, sounder policies, more effective  coordination to employment, and expedition in all construction work would  result from this consolidation.  
1931-82	1931	LAW ENFORCEMENT  
1931-83	1931	I shall present some recommendations in a special message looking to the  strengthening of criminal-law enforcement and improvement in judicial  procedure connected therewith.  
1931-84	1931	INLAND WATERWAY AND HARBOR IMPROVEMENT  
1931-85	1931	These improvements are now proceeding upon an unprecedented scale. Some  indication of the volume of work in progress is conveyed by the fact that  during the current year over 380,000,000 cubic yards of material have been  moved--an amount equal to the entire removal in the construction of the  Panama Canal. The Mississippi waterway system, connecting Chicago, Kansas  City, Pittsburgh, and New Orleans, will be in full operation during 1933.  Substantial progress is being made upon the projects of the upper Missouri,  upper Mississippi, etc.  
1931-86	1931	Negotiations are now in progress with Canada for the construction of the  St. Lawrence Waterway.  
1931-87	1931	THE TARIFF  
1931-88	1931	Wages and standards of living abroad have been materially lowered during  the past year. The temporary abandonment of the gold standard by certain  countries has also reduced their production costs compared to ours.  Fortunately any increases in the tariff which may be necessary to protect  agriculture and industry from these lowered foreign costs, or decreases in  items which may prove to be excessive, may be undertaken at any time by the  Tariff Commission under authority which it possesses by virtue of the  tariff act of 1930. The commission during the past year has reviewed the  rates upon over 254 items subject to tariff. As a result of vigorous and  industrious action, it is up to date in the consideration of pending  references and is prepared to give prompt attention to any further  applications. This procedure presents an orderly method for correcting  inequalities. I am opposed to any general congressional revision of the  tariff. Such action would disturb industry, business, and agriculture. It  would prolong the depression.  
1931-89	1931	IMMIGRATION AND DEPORTATION  
1931-90	1931	I recommend that immigration restriction now in force under administrative  action be placed upon a more definite basis by law. The deportation laws  should be strengthened. Aliens lawfully in the country should be protected  by the issuance of a certificate of residence.  
1931-91	1931	PUBLIC HEALTH  
1931-92	1931	I again call attention to my previous recommendations upon this subject,  particularly in its relation to children. The moral results are of the  utmost importance.  
1931-93	1931	CONCLUSION  
1931-94	1931	It is inevitable that in these times much of the legislation proposed to  the Congress and many of the recommendations of the Executive must be  designed to meet emergencies. In reaching solutions we must not jeopardize  those principles which we have found to be the basis of the growth of the  Nation. The Federal Government must not encroach upon nor permit local  communities to abandon that precious possession of local initiative and  responsibility. Again, just as the largest measure of responsibility in the  government of the Nation rests upon local self-government, so does the  largest measure of social responsibility in our country rest upon the  individual. If the individual surrenders his own initiative and  responsibilities, he is surrendering his own freedom and his own liberty.  It is the duty of the National Government to insist that both the local  governments and the individual shall assume and bear these responsibilities  as a fundamental of preserving the very basis of our freedom.  
1931-95	1931	Many vital changes and movements of vast proportions are taking place in  the economic world. The effect of these changes upon the future can not be  seen clearly as yet. Of this, however, we are sure: Our system, based upon  the ideals of individual initiative and of equality of opportunity, is not  an artificial thing. Rather it is the outgrowth of the experience of  America, and expresses the faith and spirit of our people. It has carried  us in a century and a half to leadership of the economic world. If our  economic system does not match our highest expectations at all times, it  does not require revolutionary action to bring it into accord with any  necessity that experience may prove. It has successfully adjusted itself to  changing conditions in the past. It will do so again. The mobility of our  institutions, the richness of our resources, and the abilities of our  people enable us to meet them unafraid. It is a distressful time for many  of our people, but they have shown qualities as high in fortitude, courage,  and resourcefulness as ever in our history. With that spirit, I have faith  that out of it will come a sounder life, a truer standard of values, a  greater recognition of the results of honest effort, and a healthier  atmosphere in which to rear our children. Ours must be a country of such  stability and security as can not fail to carry forward and enlarge among  all the people that abundant life of material and spiritual opportunity  which it has represented among all nations since its beginning.  
1931-96	1931	The White House,  
1931-97	1931	December 8, 1931  
1932-1	1932	To the Senate and House of Representatives:  
1932-2	1932	In accord with my constitutional duty, I transmit herewith to the Congress  information upon the state of the Union together with recommendation of  measures for its consideration.  
1932-3	1932	Our country is at peace. Our national defense has been maintained at a high  state of effectiveness. All of the executive departments of the Government  have been conducted during the year with a high devotion to public  interest. There has been a far larger degree of freedom from industrial  conflict than hitherto known. Education and science have made further  advances. The public health is to-day at its highest known level. While we  have recently engaged in the aggressive contest of a national election, its  very tranquillity and the acceptance of its results furnish abundant proof  of the strength of our institutions.  
1932-4	1932	In the face of widespread hardship our people have demonstrated daily a  magnificent sense of humanity, of individual and community responsibility  for the welfare of the less fortunate. They have grown in their conceptions  and organization for cooperative action for the common welfare.  
1932-5	1932	In the provision against distress during this winter, the great private  agencies of the country have been mobilized again; the generosity of our  people has again come into evidence to a degree in which all America may  take great pride. Likewise the local authorities and the States are engaged  everywhere in supplemental measures of relief. The provisions made for  loans from the Reconstruction Finance Corporation, to States that have  exhausted their own resources, guarantee that there should be no hunger or  suffering from cold in the country. The large majority of States are  showing a sturdy cooperation in the spirit of the Federal aid.  
1932-6	1932	The Surgeon General, in charge of the Public Health Service, furnishes me  with the following information upon the state of public health:  
1932-7	1932	MORTALITY RATE PER 1,000 OF POPULATION ON AN ANNUAL BASIS FROM  REPRESENTATIVE STATES - General - Infant  
1932-8	1932	First 9 months of-- - -  
1932-9	1932	1928 - 11.9 - 67.8  
1932-10	1932	1929 - 12.0 - 65.8  
1932-11	1932	1930 - 11.4 - 62.0  
1932-12	1932	1931 - 11.2 - 60.0  
1932-13	1932	1932 - 10.6 - 55.0  
1932-14	1932	The sickness rates from data available show the same trends. These facts  indicate the fine endeavor of the agencies which have been mobilized for  care of those in distress.  
1932-15	1932	ECONOMIC SITUATION  
1932-16	1932	The unparalleled world-wide economic depression has continued through the  year. Due to the European collapse, the situation developed during last  fall and winter into a series of most acute crises. The unprecedented  emergency measures enacted and policies adopted undoubtedly saved the  country from economic disaster. After serving to defend the national  security, these measures began in July to show their weight and influence  toward improvement of conditions in many parts of the country. The  following tables of current business indicators show the general economic  movement during the past eleven months.  
1932-17	1932	MONTHLY BUSINESS INDICES WITH SEASONAL VARIATIONS ELIMINATED  
1932-18	1932	Year and Month - Industrial Production - Factory Employment - Freight-car  loadings - Department Store sales, value - Exports, value - Imports, value  - Building Contracts, all types - Industrial Electric power consumption  
1932-19	1932	1931 - - - - - - - -  
1932-20	1932	December - 74 - 69.4 - 69 - 81 - 46 - 48 - 38 - 89.1  
1932-21	1932	1932 - - - - - - - -  
1932-22	1932	January - 72 - 68.1 - 64 - 78 - 39 - 42 - 31 - 93.9  
1932-23	1932	February - 69 - 67.8 - 62 - 78 - 45 - 41 - 27 - 98.8  
1932-24	1932	March - 67 - 66.4 - 61 - 72 - 41 - 37 - 26 - 88.0  
1932-25	1932	April - 63 - 64.3 - 59 - 80 - 38 - 36 - 27 - 82.2  
1932-26	1932	May - 60 - 62.1 - 54 - 73 - 37 - 34 - 26 - 82.0  
1932-27	1932	June - 59 - 60.0 - 52 - 71 - 34 - 36 - 27 - 78.1  
1932-28	1932	July - 58 - 58.3 - 51 - 67 - 32 - 27 - 27 - 79.2  
1932-29	1932	August - 60 - 58.8 - 51 - 66 - 31 - 29 - 30 - 73.5  
1932-30	1932	September - 66 - 60.3 - 54 - 70 - 33 - 32 - 30 - 84.0  
1932-31	1932	October - 66 - 61.1 - 57 - 70 - 33 - 32 - 29 - 84.4  
1932-32	1932	The measures and policies which have procured this turn toward recovery  should be continued until the depression is passed, and then the emergency  agencies should be promptly liquidated. The expansion of credit facilities  by the Federal Reserve System and the Reconstruction Finance Corporation  has been of incalculable value. The loans of the latter for reproductive  works, and to railways for the creation of employment; its support of the  credit structure through loans to banks, insurance companies, railways,  building and loan associations, and to agriculture has protected the  savings and insurance policies of millions of our citizens and has relieved  millions of borrowers from duress; they have enabled industry and business  to function and expand. The assistance given to Farm Loan Banks, the  establishment of the Home Loan Banks and Agricultural Credit  Associations--all in their various ramifications have placed large sums of  money at the disposal of the people in protection and aid. Beyond this, the  extensive organization of the country in voluntary action has produced  profound results.  
1932-33	1932	The following table indicates direct expenditures of the Federal Government  in aid to unemployment, agriculture, and financial relief over the past  four years. The sums applied to financial relief multiply themselves many  fold, being in considerable measure the initial capital supplied to the  Reconstruction Finance Corporation, Farm Loan Banks, etc., which will be  recovered to the Treasury.  
1932-34	1932	- Public works (1) - Agricultural relief and financial loans  
1932-35	1932	Fiscal year ending June 30 - -  
1932-36	1932	1930 - $410,420,000 - $156,100,000  
1932-37	1932	1931 - 574,870,000 - 196,700,000  
1932-38	1932	1932 - 655,880,000 - 772,700,000  
1932-39	1932	1933 - 717,260,000 - 52,000,000 -  
1934-1	1934	Mr. President, Mr. Speaker, Senators and Representatives in Congress:  
1934-2	1934	I come before you at the opening of the Regular Session of the 73d  Congress, not to make requests for special or detailed items of  legislation; I come, rather, to counsel with you, who, like myself, have  been selected to carry out a mandate of the whole people, in order that  without partisanship you and I may cooperate to continue the restoration of  our national wellbeing and, equally important, to build on the ruins of the  past a new structure designed better to meet the present problems of modern  civilization.  
1934-3	1934	Such a structure includes not only the relations of industry and  agriculture and finance to each other but also the effect which all of  these three have on our individual citizens and on the whole people as a  Nation.  
1934-4	1934	Now that we are definitely in the process of recovery, lines have been  rightly drawn between those to whom this recovery means a return to old  methods--and the number of these people is small--and those for whom  recovery means a reform of many old methods, a permanent readjustment of  many of our ways of thinking and therefore of many of our social and  economic arrangements. . . . .  
1934-5	1934	Civilization cannot go back; civilization must not stand still. We have  undertaken new methods. It is our task to perfect, to improve, to alter  when necessary, but in all cases to go forward. To consolidate what we are  doing, to make our economic and social structure capable of dealing with  modern life is the joint task of the legislative, the judicial, and the  executive branches of the national Government.  
1934-6	1934	Without regard to party, the overwhelming majority of our people seek a  greater opportunity for humanity to prosper and find happiness. They  recognize that human welfare has not increased and does not increase  through mere materialism and luxury, but that it does progress through  integrity, unselfishness, responsibility and justice.  
1934-7	1934	In the past few months, as a result of our action, we have demanded of many  citizens that they surrender certain licenses to do as they please in  their business relationships; but we have asked this in exchange for the  protection which the State can give against exploitation by their fellow  men or by combinations of their fellow men.  
1934-8	1934	I congratulate this Congress upon the courage, the earnestness and the  efficiency with which you met the crisis at the Special Session. It was  your fine understanding of the national problem that furnished the example  which the country has so splendidly followed. I venture to say that the  task confronting the First Congress of 1789 was no greater than your own.  
1934-9	1934	I shall not attempt to set forth either the many phases of the crisis which  we experienced last March, or the many measures which you and I undertook  during the Special Session that we might initiate recovery and reform.  
1934-10	1934	It is sufficient that I should speak in broad terms of the results of our  common counsel. The credit of the Government has been fortified by drastic  reduction in the cost of its permanent agencies through the Economy Act.  
1934-11	1934	With the twofold purpose of strengthening the whole financial structure and  of arriving eventually at a medium of exchange which over the years will  have less variable purchasing and debt paying power for our people than  that of the past, I have used the authority granted me to purchase all  American-produced gold and silver and to buy additional gold in the world  markets. Careful investigation and constant study prove that in the matter  of foreign exchange rates certain of our sister Nations find themselves so  handicapped by internal and other conditions that they feel unable at this  time to enter into stabilization discussion based on permanent and  world-wide objectives.  
1934-12	1934	The overwhelming majority of the banks, both national and State, which  reopened last spring, are in sound condition and have been brought within  the protection of Federal insurance. In the case of those banks which were  not permitted to reopen, nearly six hundred million dollars of frozen  deposits are being restored to the depositors through the assistance of the  national Government.  
1934-13	1934	We have made great strides toward the objectives of the National Industrial  Recovery Act, for not only have several millions of our unemployed been  restored to work, but industry is organizing itself with a greater  understanding that reasonable profits can be earned while at the same time  protection can be assured to guarantee to labor adequate pay and proper  conditions of work. Child labor is abolished. Uniform standards of hours  and wages apply today to 95 percent of industrial employment within the  field of the National Industrial Recovery Act. We seek the definite end of  preventing combinations in furtherance of monopoly and in restraint of  trade, while at the same time we seek to prevent ruinous rivalries within  industrial groups which in many cases resemble the gang wars of the  underworld and in which the real victim in every case is the public  itself.  
1934-14	1934	Under the authority of this Congress, we have brought the component parts  of each industry together around a common table, just as we have brought  problems affecting labor to a common meeting ground. Though the machinery,  hurriedly devised, may need readjustment from time to time, nevertheless I  think you will agree with me that we have created a permanent feature of  our modernized industrial structure and that it will continue under the  supervision but not the arbitrary dictation of Government itself.  
1934-15	1934	You recognized last spring that the most serious part of the debt burden  affected those who stood in danger of losing their farms and their homes. I  am glad to tell you that refinancing in both of these cases is proceeding  with good success and in all probability within the financial limits set by  the Congress.  
1934-16	1934	But agriculture had suffered from more than its debts. Actual experience  with the operation of the Agricultural Adjustment Act leads to my belief  that thus far the experiment of seeking a balance between production and  consumption is succeeding and has made progress entirely in line with  reasonable expectations toward the restoration of farm prices to parity. I  continue in my conviction that industrial progress and prosperity can only  be attained by bringing the purchasing power of that portion of our  population which in one form or another is dependent upon agriculture up to  a level which will restore a proper balance between every section of the  country and between every form of work.  
1934-17	1934	In this field, through carefully planned flood control, power development  and land-use policies in the Tennessee Valley and in other, great  watersheds, we are seeking the elimination of waste, the removal of poor  lands from agriculture and the encouragement of small local industries,  thus furthering this principle of a better balanced national life. We  recognize the great ultimate cost of the application of this rounded policy  to every part off the Union. Today we are creating heavy obligations to  start the work because of the great unemployment needs of the moment. I  look forward, however, to the time in the not distant future, when annual  appropriations, wholly covered by current revenue, will enable the work to  proceed under a national plan. Such a national plan will, in a generation  or two, return many times the money spent on it; more important, it will  eliminate the use of inefficient tools, conserve and increase natural  resources, prevent waste, and enable millions of our people to take better  advantage of the opportunities which God has given our country.  
1934-18	1934	I cannot, unfortunately, present to you a picture of complete optimism  regarding world affairs.  
1934-19	1934	The delegation representing the United States has worked in close  cooperation with the other American Republics assembled at Montevideo to  make that conference an outstanding success. We have, I hope, made it clear  to our neighbors that we seek with them future avoidance of territorial  expansion and of interference by one Nation in the internal affairs of  another. Furthermore, all of us are seeking the restoration of commerce in  ways which will preclude the building up of large favorable trade balances  by any one Nation at the expense of trade debits on the part of other  Nations.  
1934-20	1934	In other parts of the world, however, fear of immediate or future  aggression and with it the spending of vast sums on armament and the  continued building up of defensive trade barriers prevent any great  progress in peace or trade agreements. I have made it clear that the United  States cannot take part in political arrangements in Europe but that we  stand ready to cooperate at any time in practicable measures on a world  basis looking to immediate reduction of armaments and the lowering of the  barriers against commerce.  
1934-21	1934	I expect to report to you later in regard to debts owed the Government and  people of this country by the Governments and peoples of other countries.  Several Nations, acknowledging the debt, have paid in small part; other  Nations have failed to pay. One Nation--Finland--has paid the installments  due this country in full.  
1934-22	1934	Returning to home problems, we have been shocked by many notorious examples  of injuries done our citizens by persons or groups who have been living off  their neighbors by the use of methods either unethical or criminal.  
1934-23	1934	In the first category--a field which does not involve violations of the  letter of our laws--practices have been brought to light which have shocked  those who believed that we were in the past generation raising the ethical  standards of business. They call for stringent preventive or regulatory  measures. I am speaking of those individuals who have evaded the spirit and  purpose of our tax laws, of those high officials of banks or corporations  who have grown rich at the expense of their stockholders or the public, of  those reckless speculators with their own or other people's money whose  operations have injured the values of the farmers' crops and the savings  of the poor.  
1934-24	1934	In the other category, crimes of organized banditry, coldblooded shooting,  lynching and kidnapping have threatened our security.  
1934-25	1934	These violations of ethics and these violations of law call on the strong  arm of Government for their immediate suppression; they call also on the  country for an aroused public opinion.  
1934-26	1934	The adoption of the Twenty-first Amendment should give material aid to the  elimination of those new forms of crime which came from the illegal traffic  in liquor.  
1934-27	1934	I shall continue to regard it as my duty to use whatever means may be  necessary to supplement State, local and private agencies for the relief of  suffering caused by unemployment. With respect to this question, I have  recognized the dangers inherent in the direct giving of relief and have  sought the means to provide not mere relief, but the opportunity for useful  and remunerative work. We shall, in the process of recovery, seek to move  as rapidly as possible from direct relief to publicly supported work and  from that to the rapid restoration of private employment.  
1934-28	1934	It is to the eternal credit of the American people that this tremendous  readjustment of our national life is being accomplished peacefully, without  serious dislocation, with only a minimum of injustice and with a great,  willing spirit of cooperation throughout the country.  
1934-29	1934	Disorder is not an American habit. Self-help and self-control are the  essence of the American tradition--not of necessity the form of that  tradition, but its spirit. The program itself comes from the American  people.  
1934-30	1934	It is an integrated program, national in scope. Viewed in the large, it is  designed to save from destruction and to keep for the future the genuinely  important values created by modern society. The vicious and wasteful parts  of that society we could not save if we wished; they have chosen the way of  self-destruction. We would save useful mechanical invention, machine  production, industrial efficiency, modern means of communication, broad  education. We would save and encourage the slowly growing impulse among  consumers to enter the industrial market place equipped with sufficient  organization to insist upon fair prices and honest sales.  
1934-31	1934	But the unnecessary expansion of industrial plants, the waste of natural  resources, the exploitation of the consumers of natural monopolies, the  accumulation of stagnant surpluses, child labor, and the ruthless  exploitation of all labor, the encouragement of speculation with other  people's money, these were consumed in the fires that they themselves  kindled; we must make sure that as we reconstruct our life there be no soil  in which such weeds can grow again.  
1934-32	1934	We have plowed the furrow and planted the good seed; the hard beginning is  over. If we would reap the full harvest, we must cultivate the soil where  this good seed is sprouting and the plant is reaching up to mature growth.  
1934-33	1934	A final personal word. I know that each of you will appreciate that. I am  speaking no mere politeness when I assure you how much I value the fine  relationship that we have shared during these months of hard and incessant  work. Out of these friendly contacts we are, fortunately, building a strong  and permanent tie between the legislative and executive branches of the  Government. The letter of the Constitution wisely declared a separation,  but the impulse of common purpose declares a union. In this spirit we join  once more in serving the American people.  
1935-1	1935	Mr. President, Mr. Speaker, Members of the Senate and of the House of  Representatives:  
1935-2	1935	The Constitution wisely provides that the Chief Executive shall report to  the Congress on the state of the Union, for through you, the chosen  legislative representatives, our citizens everywhere may fairly judge the  progress of our governing. I am confident that today, in the light of the  events of the past two years, you do not consider it merely a trite phrase  when I tell you that I am truly glad to greet you and that I look forward  to common counsel, to useful cooperation, and to genuine friendships  between us.  
1935-3	1935	We have undertaken a new order of things; yet we progress to it under the  framework and in the spirit and intent of the American Constitution. We  have proceeded throughout the Nation a measurable distance on the road  toward this new order. Materially, I can report to you substantial benefits  to our agricultural population, increased industrial activity, and profits  to our merchants. Of equal moment, there is evident a restoration of that  spirit of confidence and faith which marks the American character. Let him,  who, for speculative profit or partisan purpose, without just warrant would  seek to disturb or dispel this assurance, take heed before he assumes  responsibility for any act which slows our onward steps.  
1935-4	1935	Throughout the world, change is the order of the day. In every Nation  economic problems, long in the making, have brought crises of many kinds  for which the masters of old practice and theory were unprepared. In most  Nations social justice, no longer a distant ideal, has become a definite  goal, and ancient Governments are beginning to heed the call.  
1935-5	1935	Thus, the American people do not stand alone in the world in their desire  for change. We seek it through tested liberal traditions, through processes  which retain all of the deep essentials of that republican form of  representative government first given to a troubled world by the United  States.  
1935-6	1935	As the various parts in the program begun in the Extraordinary Session of  the 73rd Congress shape themselves in practical administration, the unity  of our program reveals itself to the Nation. The outlines of the new  economic order, rising from the disintegration of the old, are apparent. We  test what we have done as our measures take root in the living texture of  life. We see where we have built wisely and where we can do still better.  
1935-7	1935	The attempt to make a distinction between recovery and reform is a narrowly  conceived effort to substitute the appearance of reality for reality  itself. When a man is convalescing from illness, wisdom dictates not only  cure of the symptoms, but also removal of their cause.  
1935-8	1935	It is important to recognize that while we seek to outlaw specific abuses,  the American objective of today has an infinitely deeper, finer and more  lasting purpose than mere repression. Thinking people in almost every  country of the world have come to realize certain fundamental difficulties  with which civilization must reckon. Rapid changes--the machine age, the  advent of universal and rapid communication and many other new factors--have  brought new problems. Succeeding generations have attempted to keep pace by  reforming in piecemeal fashion this or that attendant abuse. As a result,  evils overlap and reform becomes confused and frustrated. We lose sight,  from time to time, of our ultimate human objectives.  
1935-9	1935	Let us, for a moment, strip from our simple purpose the confusion that  results from a multiplicity of detail and from millions of written and  spoken words.  
1935-10	1935	We find our population suffering from old inequalities, little changed by  vast sporadic remedies. In spite of our efforts and in spite of our talk,  we have not weeded out the over privileged and we have not effectively  lifted up the underprivileged. Both of these manifestations of injustice  have retarded happiness. No wise man has any intention of destroying what  is known as the profit motive; because by the profit motive we mean the  right by work to earn a decent livelihood for ourselves and for our  families.  
1935-11	1935	We have, however, a clear mandate from the people, that Americans must  forswear that conception of the acquisition of wealth which, through  excessive profits, creates undue private power over private affairs and, to  our misfortune, over public affairs as well. In building toward this end we  do not destroy ambition, nor do we seek to divide our wealth into equal  shares on stated occasions. We continue to recognize the greater ability of  some to earn more than others. But we do assert that the ambition of the  individual to obtain for him and his a proper security, a reasonable  leisure, and a decent living throughout life, is an ambition to be  preferred to the appetite for great wealth and great power.  
1935-12	1935	I recall to your attention my message to the Congress last June in which I  said: "among our objectives I place the security of the men, women and  children of the Nation first." That remains our first and continuing task;  and in a very real sense every major legislative enactment of this Congress  should be a component part of it.  
1935-13	1935	In defining immediate factors which enter into our quest, I have spoken to  the Congress and the people of three great divisions:  
1935-14	1935	1. The security of a livelihood through the better use of the national  resources of the land in which we live.  
1935-15	1935	2. The security against the major hazards and vicissitudes of life.  
1935-16	1935	3. The security of decent homes.  
1935-17	1935	I am now ready to submit to the Congress a broad program designed  ultimately to establish all three of these factors of security--a program  which because of many lost years will take many future years to fulfill.  
1935-18	1935	A study of our national resources, more comprehensive than any previously  made, shows the vast amount of necessary and practicable work which needs  to be done for the development and preservation of our natural wealth for  the enjoyment and advantage of our people in generations to come. The sound  use of land and water is far more comprehensive than the mere planting of  trees, building of dams, distributing of electricity or retirement of  sub-marginal land. It recognizes that stranded populations, either in the  country or the city, cannot have security under the conditions that now  surround them.  
1935-19	1935	To this end we are ready to begin to meet this problem--the intelligent care  of population throughout our Nation, in accordance with an intelligent  distribution of the means of livelihood for that population. A definite  program for putting people to work, of which I shall speak in a moment, is  a component part of this greater program of security of livelihood through  the better use of our national resources.  
1935-20	1935	Closely related to the broad problem of livelihood is that of security  against the major hazards of life. Here also, a comprehensive survey of  what has been attempted or accomplished in many Nations and in many States  proves to me that the time has come for action by the national Government.  I shall send to you, in a few days, definite recommendations based on these  studies. These recommendations will cover the broad subjects of  unemployment insurance and old age insurance, of benefits for children,  form others, for the handicapped, for maternity care and for other aspects  of dependency and illness where a beginning can now be made.  
1935-21	1935	The third factor--better homes for our people--has also been the subject of  experimentation and study. Here, too, the first practical steps can be made  through the proposals which I shall suggest in relation to giving work to  the unemployed.  
1935-22	1935	Whatever we plan and whatever we do should be in the light of these three  clear objectives of security. We cannot afford to lose valuable time in  haphazard public policies which cannot find a place in the broad outlines  of these major purposes. In that spirit I come to an immediate issue made  for us by hard and inescapable circumstance--the task of putting people to  work. In the spring of 1933 the issue of destitution seemed to stand apart;  today, in the light of our experience and our new national policy, we find  we can put people to work in ways which conform to, initiate and carry  forward the broad principles of that policy.  
1935-23	1935	The first objectives of emergency legislation of 1933 were to relieve  destitution, to make it possible for industry to operate in a more rational  and orderly fashion, and to put behind industrial recovery the impulse of  large expenditures in Government undertakings. The purpose of the National  Industrial Recovery Act to provide work for more people succeeded in a  substantial manner within the first few months of its life, and the Act has  continued to maintain employment gains and greatly improved working  conditions in industry.  
1935-24	1935	The program of public works provided for in the Recovery Act launched the  Federal Government into a task for which there was little time to make  preparation and little American experience to follow. Great employment has  been given and is being given by these works.  
1935-25	1935	More than two billions of dollars have also been expended in direct relief  to the destitute. Local agencies of necessity determined the recipients of  this form of relief. With inevitable exceptions the funds were spent by  them with reasonable efficiency and as a result actual want of food and  clothing in the great majority of cases has been overcome.  
1935-26	1935	But the stark fact before us is that great numbers still remain  unemployed.  
1935-27	1935	A large proportion of these unemployed and their dependents have been  forced on the relief rolls. The burden on the Federal Government has grown  with great rapidity. We have here a human as well as an economic problem.  When humane considerations are concerned, Americans give them precedence.  The lessons of history, confirmed by the evidence immediately before me,  show conclusively that continued dependence upon relief induces a spiritual  and moral disintegration fundamentally destructive to the national fibre.  To dole out relief in this way is to administer a narcotic, a subtle  destroyer of the human spirit. It is inimical to the dictates of sound  policy. It is in violation of the traditions of America. Work must be found  for able-bodied but destitute workers.  
1935-28	1935	The Federal Government must and shall quit this business of relief.  
1935-29	1935	I am not willing that the vitality of our people be further sapped by the  giving of cash, of market baskets, of a few hours of weekly work cutting  grass, raking leaves or picking up .papers in the public parks. We must  preserve not only the bodies of the unemployed from destitution but also  their self-respect, their self-reliance and courage and determination. This  decision brings me to the problem of what the Government should do with  approximately five million unemployed now on the relief rolls.  
1935-30	1935	About one million and a half of these belong to the group which in the past  was dependent upon local welfare efforts. Most of them are unable for one  reason or another to maintain themselves independently--for the most part,  through no fault of their own. Such people, in the days before the great  depression, were cared for by local efforts--by States, by counties, by  towns, by cities, by churches and by private welfare agencies. It is my  thought that in the future they must be cared for as they were before. I  stand ready through my own personal efforts, and through the public  influence of the office that I hold, to help these local agencies to get  the means necessary to assume this burden.  
1935-31	1935	The security legislation which I shall propose to the Congress will, I am  confident, be of assistance to local effort in the care of this type of  cases. Local responsibility can and will be resumed, for, after all, common  sense tells us that the wealth necessary for this task existed and still  exists in the local community, and the dictates of sound administration  require that this responsibility be in the first instance a local one.  There are, however, an additional three and one half million employable  people who are on relief. With them the problem is different and the  responsibility is different. This group was the victim of a nation-wide  depression caused by conditions which were not local but national. The  Federal Government is the only governmental agency with sufficient power  and credit to meet this situation. We have assumed this task and we shall  not shrink from it in the future. It is a duty dictated by every  intelligent consideration of national policy to ask you to make it possible  for the United States to give employment to all of these three and one half  million employable people now on relief, pending their absorption in a  rising tide of private employment.  
1935-32	1935	It is my thought that with the exception of certain of the normal public  building operations of the Government, all emergency public works shall be  united in a single new and greatly enlarged plan.  
1935-33	1935	With the establishment of this new system we can supersede the Federal  Emergency Relief Administration with a coordinated authority which will be  charged with the orderly liquidation of our present relief activities and  the substitution of a national chart for the giving of work.  
1935-34	1935	This new program of emergency public employment should be governed by a  number of practical principles.  
1935-35	1935	(1) All work undertaken should be useful--not just for a day, or a year,  but useful in the sense that it affords permanent improvement in living  conditions or that it creates future new wealth for the Nation.  
1935-36	1935	(2) Compensation on emergency public projects should be in the form of  security payments which should be larger than the amount now received as a  relief dole, but at the same time not so large as to encourage the  rejection of opportunities for private employment or the leaving of private  employment to engage in Government work.  
1935-37	1935	(3) Projects should be undertaken on which a large percentage of direct  labor can be used.  
1935-38	1935	(4) Preference should be given to those projects which will be  self-liquidating in the sense that there is a reasonable expectation that  the Government will get its money back at some future time.  
1935-39	1935	(5) The projects undertaken should be selected and planned so as to compete  as little as possible with private enterprises. This suggests that if it  were not for the necessity of giving useful work to the unemployed now on  relief, these projects in most instances would not now be undertaken.  
1935-40	1935	(6) The planning of projects would seek to assure work during the coming  fiscal year to the individuals now on relief, or until such time as private  employment is available. In order to make adjustment to increasing private  employment, work should be planned with a view to tapering it off in  proportion to the speed with which the emergency workers are offered  positions with private employers.  
1935-41	1935	(7) Effort should be made to locate projects where they will serve the  greatest unemployment needs as shown by present relief rolls, and the broad  program of the National Resources Board should be freely used for guidance  in selection. Our ultimate objective being the enrichment of human lives,  the Government has the primary duty to use its emergency expenditures as  much as possible to serve those who cannot secure the advantages of private  capital.  
1935-42	1935	Ever since the adjournment of the 73d Congress, the Administration has been  studying from every angle the possibility and the practicability of new  forms of employment. As a result of these studies I have arrived at certain  very definite convictions as to the amount of money that will be necessary  for the sort of public projects that I have described. I shall submit these  figures in my budget message. I assure you now they will be within the  sound credit of the Government.  
1935-43	1935	The work itself will cover a wide field including clearance of slums, which  for adequate reasons cannot be undertaken by private capital; in rural  housing of several kinds, where, again, private capital is unable to  function; in rural electrification; in the reforestation of the great  watersheds of the Nation; in an intensified program to prevent soil erosion  and to reclaim blighted areas; in improving existing road systems and in  constructing national highways designed to handle modern traffic; in the  elimination of grade crossings; in the extension and enlargement of the  successful work of the Civilian Conservation Corps; in non-Federal works,  mostly self-liquidating and highly useful to local divisions of Government;  and on many other projects which the Nation needs and cannot afford to  neglect.  
1935-44	1935	This is the method which I propose to you in order that we may better meet  this present-day problem of unemployment. Its greatest advantage is that it  fits logically and usefully into the long-range permanent policy of  providing the three types of security which constitute as a whole an  American plan for the betterment of the future of the American people.  
1935-45	1935	I shall consult with you from time to time concerning other measures of  national importance. Among the subjects that lie immediately before us are  the consolidation of Federal regulatory administration over all forms of  transportation, the renewal and clarification of the general purposes of  the National Industrial Recovery Act, the strengthening of our facilities  for the prevention, detection and treatment of crime and criminals, the  restoration of sound conditions in the public utilities field through  abolition of the evil features of holding companies, the gradual tapering  off of the emergency credit activities of Government, and improvement in  our taxation forms and methods.  
1935-46	1935	We have already begun to feel the bracing effect upon our economic system  of a restored agriculture. The hundreds of millions of additional income  that farmers are receiving are finding their way into the channels of  trade. The farmers' share of the national income is slowly rising. The  economic facts justify the widespread opinion of those engaged in  agriculture that our provisions for maintaining a balanced production give  at this time the most adequate remedy for an old and vexing problem. For  the present, and especially in view of abnormal world conditions,  agricultural adjustment with certain necessary improvements in methods  should continue.  
1935-47	1935	It seems appropriate to call attention at this time to the fine spirit  shown during the past year by our public servants. I cannot praise too  highly the cheerful work of the Civil Service employees, and of those  temporarily working for the Government. As for those thousands in our  various public agencies spread throughout the country who, without  compensation, agreed to take over heavy responsibilities in connection with  our various loan agencies and particularly in direct relief work, I cannot  say too much. I do not think any country could show a higher average of  cheerful and even enthusiastic team-work than has been shown by these men  and women.  
1935-48	1935	I cannot with candor tell you that general international relationships  outside the borders of the United States are improved. On the surface of  things many old jealousies are resurrected, old passions aroused; new  strivings for armament and power, in more than one land, rear their ugly  heads. I hope that calm counsel and constructive leadership will provide  the steadying influence and the time necessary for the coming of new and  more practical forms of representative government throughout the world  wherein privilege and power will occupy a lesser place and world welfare a  greater.  
1935-49	1935	I believe, however, that our own peaceful and neighborly attitude toward  other Nations is coming to be understood and appreciated. The maintenance  of international peace is a matter in which we are deeply and unselfishly  concerned. Evidence of our persistent and undeniable desire to prevent  armed conflict has recently been more than once afforded.  
1935-50	1935	There is no ground for apprehension that our relations with any Nation will  be otherwise than peaceful. Nor is there ground for doubt that the people  of most Nations seek relief from the threat and burden attaching to the  false theory that extravagant armament cannot be reduced and limited by  international accord.  
1935-51	1935	The ledger of the past year shows many more gains than losses. Let us not  forget that, in addition to saving millions from utter destitution, child  labor has been for the moment outlawed, thousands of homes saved to their  owners and most important of all, the morale of the Nation has been  restored. Viewing the year 1934 as a whole, you and I can agree that we  have a generous measure of reasons for giving thanks.  
1935-52	1935	It is not empty optimism that moves me to a strong hope in the coming year.  We can, if we will, make 1935 a genuine period of good feeling, sustained  by a sense of purposeful progress. Beyond the material recovery, I sense a  spiritual recovery as well. The people of America are turning as never  before to those permanent values that are not limited to the physical  objectives of life. There are growing signs of this on every hand. In the  face of these spiritual impulses we are sensible of the Divine Providence  to which Nations turn now, as always, for guidance and fostering care.  
1936-1	1936	Mr. President, Mr. Speaker, Members of the Senate and of the House of  Representatives:  
1936-2	1936	We are about to enter upon another year of the responsibility which the  electorate of the United States has placed in our hands. Having come so  far, it is fitting that we should pause to survey the ground which we have  covered and the path which lies ahead.  
1936-3	1936	On the fourth day of March, 1933, on the occasion of taking the oath of  office as President of the United States, I addressed the people of our  country. Need I recall either the scene or the national circumstances  attending the occasion? The crisis of that moment was almost exclusively a  national one. In recognition of that fact, so obvious to the millions in  the streets and in the homes of America, I devoted by far the greater part  of that address to what I called, and the Nation called, critical days  within our own borders.  
1936-4	1936	You will remember that on that fourth of March, 1933, the world picture was  an image of substantial peace. International consultation and widespread  hope for the bettering of relations between the Nations gave to all of us a  reasonable expectation that the barriers to mutual confidence, to increased  trade, and to the peaceful settlement of disputes could be progressively  removed. In fact, my only reference to the field of world policy in that  address was in these words: "I would dedicate this Nation to the policy of  the good neighbor--the neighbor who resolutely respects himself and, because  he does so, respects the rights of others--a neighbor who respects his  obligations and respects the sanctity of his agreements in and with a world  of neighbors."  
1936-5	1936	In the years that have followed, that sentiment has remained the dedication  of this Nation. Among the Nations of the great Western Hemisphere the  policy of the good neighbor has happily prevailed. At no time in the four  and a half centuries of modern civilization in the Americas has there  existed--in any year, in any decade, in any generation in all that time--a  greater spirit of mutual understanding, of common helpfulness, and of  devotion to the ideals of serf-government than exists today in the  twenty-one American Republics and their neighbor, the Dominion of Canada.  This policy of the good neighbor among the Americas is no longer a hope, no  longer an objective remaining to be accomplished. It is a fact, active,  present, pertinent and effective. In this achievement, every American  Nation takes an understanding part. There is neither war, nor rumor of war,  nor desire for war. The inhabitants of this vast area, two hundred and  fifty million strong, spreading more than eight thousand miles from the  Arctic to the Antarctic, believe in, and propose to follow, the policy of  the good neighbor. They wish with all their heart that the rest of the  world might do likewise.  
1936-6	1936	The rest of the world--Ah! there is the rub.  
1936-7	1936	Were I today to deliver an Inaugural Address to the people of the United  States, I could not limit my comments on world affairs to one paragraph.  With much regret I should be compelled to devote the greater part to world  affairs. Since the summer of that same year of 1933, the temper and the  purposes of the rulers of many of the great populations in Europe and in  Asia have not pointed the way either to peace or to good-will among men.  Not only have peace and good-will among men grown more remote in those  areas of the earth during this period, but a point has been reached where  the people of the Americas must take cognizance of growing ill-will, of  marked trends toward aggression, of increasing armaments, of shortening  tempers--a situation which has in it many of the elements that lead to the  tragedy of general war.  
1936-8	1936	On those other continents many Nations, principally the smaller peoples, if  left to themselves, would be content with their boundaries and willing to  solve within themselves and in cooperation with their neighbors their  individual problems, both economic and social. The rulers of those Nations,  deep in their hearts, follow these peaceful and reasonable aspirations of  their peoples. These rulers must remain ever vigilant against the  possibility today or tomorrow of invasion or attack by the rulers of other  peoples who fail to subscribe to the principles of bettering the human race  by peaceful means.  
1936-9	1936	Within those other Nations--those which today must bear the primary,  definite responsibility for jeopardizing world peace--what hope lies? To  say the least, there are grounds for pessimism. It is idle for us or for  others to preach that the masses of the people who constitute those Nations  which are dominated by the twin spirits of autocracy and aggression, are  out of sympathy with their rulers, that they are allowed no opportunity to  express themselves, that they would change things if they could.  
1936-10	1936	That, unfortunately, is not so clear. It might be true that the masses of  the people in those Nations would change the policies of their Governments  if they could be allowed full freedom and full access to the processes of  democratic government as we understand them. But they do not have that  access; lacking it they follow blindly and fervently the lead of those who  seek autocratic power.  
1936-11	1936	Nations seeking expansion, seeking the rectification of injustices  springing from former wars, or seeking outlets for trade, for population or  even for their own peaceful contributions to the progress of civilization,  fail to demonstrate that patience necessary to attain reasonable and  legitimate objectives by peaceful negotiation or by an appeal to the finer  instincts of world justice.  
1936-12	1936	They have therefore impatiently reverted to the old belief in the law of  the sword, or to the fantastic conception that they, and they alone, are  chosen to fulfill a mission and that all the others among the billion and a  half of human beings in the world must and shall learn from and be subject  to them.  
1936-13	1936	I recognize and you will recognize that these words which I have chosen  with deliberation will not prove popular in any Nation that chooses to fit  this shoe to its foot. Such sentiments, however, will find sympathy and  understanding in those Nations where the people themselves are honestly  desirous of peace but must constantly align themselves on one side or the  other in the kaleidoscopic jockeying for position which is characteristic  of European and Asiatic relations today. For the peace-loving Nations, and  there are many of them, find that their very identity depends on their  moving and moving again on the chess board of international politics.  
1936-14	1936	I suggested in the spring of 1933 that 85 or 90 percent of all the people  in the world were content with the territorial limits of their respective  Nations and were willing further to reduce their armed forces if every  other Nation in the world would agree to do likewise.  
1936-15	1936	That is equally true today, and it is even more true today that world peace  and world good-will are blocked by only 10 or 15 percent of the world's  population. That is why efforts to reduce armies have thus far not only  failed, but have been met by vastly increased armaments on land and in the  air. That is why even efforts to continue the existing limits on naval  armaments into the years to come show such little current success.  
1936-16	1936	But the policy of the United States has been clear and consistent. We have  sought with earnestness in every possible way to limit world armaments and  to attain the peaceful solution of disputes among all Nations.  
1936-17	1936	We have sought by every legitimate means to exert our moral influence  against repression, against intolerance, against autocracy and in favor of  freedom of expression, equality before the law, religious tolerance and  popular rule.  
1936-18	1936	In the field of commerce we have undertaken to encourage a more reasonable  interchange of the world's goods. In the field of international finance we  have, so far as we are concerned, put an end to dollar diplomacy, to money  grabbing, to speculation for the benefit of the powerful and the rich, at  the expense of the small and the poor.  
1936-19	1936	As a consistent part of a clear policy, the United States is following a  twofold neutrality toward any and all Nations which engage in wars that are  not of immediate concern to the Americas. First, we decline to encourage  the prosecution of war by permitting belligerents to obtain arms,  ammunition or implements of war from the United States. Second, we seek to  discourage the use by belligerent Nations of any and all American products  calculated to facilitate the prosecution of a war in quantities over and  above our normal exports of them in time of peace.  
1936-20	1936	I trust that these objectives thus clearly and unequivocally stated will be  carried forward by cooperation between this Congress and the President.  
1936-21	1936	I realize that I have emphasized to you the gravity of the situation which  confronts the people of the world. This emphasis is justified because of  its importance to civilization and therefore to the United States. Peace is  jeopardized by the few and not by the many. Peace is threatened by those  who seek selfish power. The world has witnessed similar eras--as in the  days when petty kings and feudal barons were changing the map of Europe  every fortnight, or when great emperors and great kings were engaged in a  mad scramble for colonial empire. We hope that we are not again at the  threshold of such an era. But if face it we must, then the United States  and the rest of the Americas can play but one role: through a well-ordered  neutrality to do naught to encourage the contest, through adequate defense  to save ourselves from embroilment and attack, and through example and all  legitimate encouragement and assistance to persuade other Nations to return  to the ways of peace and good-will.  
1936-22	1936	The evidence before us clearly proves that autocracy in world affairs  endangers peace and that such threats do not spring from those Nations  devoted to the democratic ideal. If this be true in world affairs, it  should have the greatest weight in the determination of domestic policies.  
1936-23	1936	Within democratic Nations the chief concern of the people is to prevent the  continuance or the rise of autocratic institutions that beget slavery at  home and aggression abroad. Within our borders, as in the world at large,  popular opinion is at war with a power-seeking minority.  
1936-24	1936	That is no new thing. It was fought out in the Constitutional Convention of  1787. From time to time since then, the battle has been continued, under  Thomas Jefferson, Andrew Jackson, Theodore Roosevelt and Woodrow Wilson.  
1936-25	1936	In these latter years we have witnessed the domination of government by  financial and industrial groups, numerically small but politically dominant  in the twelve years that succeeded the World War. The present group of  which I speak is indeed numerically small and, while it exercises a large  influence and has much to say in the world of business, it does not, I am  confident, speak the true sentiments of the less articulate but more  important elements that constitute real American business.  
1936-26	1936	In March, 1933, I appealed to the Congress of the United States and to the  people of the United States in a new effort to restore power to those to  whom it rightfully belonged. The response to that appeal resulted in the  writing of a new chapter in the history of popular government. You, the  members of the Legislative branch, and I, the Executive, contended for and  established a new relationship between Government and people.  
1936-27	1936	What were the terms of that new relationship? They were an appeal from the  clamor of many private and selfish interests, yes, an appeal from the  clamor of partisan interest, to the ideal of the public interest.  Government became the representative and the trustee of the public  interest. Our aim was to build upon essentially democratic institutions,  seeking all the while the adjustment of burdens, the help of the needy, the  protection of the weak, the liberation of the exploited and the genuine  protection of the people's property.  
1936-28	1936	It goes without saying that to create such an economic constitutional  order, more than a single legislative enactment was called for. We, you in  the Congress and I as the Executive, had to build upon a broad base. Now,  after thirty-four months of work, we contemplate a fairly rounded whole. We  have returned the control of the Federal Government to the City of  Washington.  
1936-29	1936	To be sure, in so doing, we have invited battle. We have earned the hatred  of entrenched greed. The very nature of the problem that we faced made it  necessary to drive some people from power and strictly to regulate others.  I made that plain when I took the oath of office in March, 1933. I spoke of  the practices of the unscrupulous money-changers who stood indicted in the  court of public opinion. I spoke of the rulers of the exchanges of  mankind's goods, who failed through their own stubbornness and their own  incompetence. I said that they had admitted their failure and had  abdicated.  
1936-30	1936	Abdicated? Yes, in 1933, but now with the passing of danger they forget  their damaging admissions and withdraw their abdication.  
1936-31	1936	They seek the restoration of their selfish power. They offer to lead us  back round the same old corner into the same old dreary street.  
1936-32	1936	Yes, there are still determined groups that are intent upon that very  thing. Rigorously held up to popular examination, their true character  presents itself. They steal the livery of great national constitutional  ideals to serve discredited special interests. As guardians and trustees  for great groups of individual stockholders they wrongfully seek to carry  the property and the interests entrusted to them into the arena of partisan  politics. They seek--this minority in business and industry--to control and  often do control and use for their own purposes legitimate and highly  honored business associations; they engage in vast propaganda to spread  fear and discord among the people--they would "gang up" against the people's  liberties.  
1936-33	1936	The principle that they would instill into government if they succeed in  seizing power is well shown by the principles which many of them have  instilled into their own affairs: autocracy toward labor, toward  stockholders, toward consumers, toward public sentiment. Autocrats in  smaller things, they seek autocracy in bigger things. "By their fruits ye  shall know them."  
1936-34	1936	If these gentlemen believe, as they say they believe, that the measures  adopted by this Congress and its predecessor, and carried out by this  Administration, have hindered rather than promoted recovery, let them be  consistent. Let them propose to this Congress the complete repeal of these  measures. The way is open to such a proposal.  
1936-35	1936	Let action be positive and not negative. The way is open in the Congress of  the United States for an expression of opinion by yeas and nays. Shall we  say that values are restored and that the Congress will, therefore, repeal  the laws under which we have been bringing them back? Shall we say that  because national income has grown with rising prosperity, we shall repeal  existing taxes and thereby put off the day of approaching a balanced budget  and of starting to reduce the national debt? Shall we abandon the  reasonable support and regulation of banking? Shall we restore the dollar  to its former gold content?  
1936-36	1936	Shall we say to the farmer, "The prices for your products are in part  restored. Now go and hoe your own row?"  
1936-37	1936	Shall we say to the home owners, "We have reduced your rates of interest.  We have no further concern with how you keep your home or what you pay for  your money. That is your affair?"  
1936-38	1936	Shall we say to the several millions of unemployed citizens who face the  very problem of existence, of getting enough to eat, "We will withdraw from  giving you work. We will turn you back to the charity of your communities  and those men of selfish power who tell you that perhaps they will employ  you if the Government leaves them strictly alone?"  
1936-39	1936	Shall we say to the needy unemployed, "Your problem is a local one except  that perhaps the Federal Government, as an act of mere generosity, will be  willing to pay to your city or to your county a few grudging dollars to  help maintain your soup kitchens?"  
1936-40	1936	Shall we say to the children who have worked all day in the factories,  "Child labor is a local issue and so are your starvation wages; something  to be solved or left unsolved by the jurisdiction of forty-eight States?"  
1936-41	1936	Shall we say to the laborer, "Your right to organize, your relations with  your employer have nothing to do with the public interest; if your employer  will not even meet with you to discuss your problems and his, that is none  of our affair?"  
1936-42	1936	Shall we say to the unemployed and the aged, "Social security lies not  within the province of the Federal Government; you must seek relief  elsewhere?"  
1936-43	1936	Shall we say to the men and women who live in conditions of squalor in  country and in city, "The health and the happiness of you and your children  are no concern of ours?"  
1936-44	1936	Shall we expose our population once more by the repeal of laws which  protect them against the loss of their honest investments and against the  manipulations of dishonest speculators? Shall we abandon the splendid  efforts of the Federal Government to raise the health standards of the  Nation and to give youth a decent opportunity through such means as the  Civilian Conservation Corps?  
1936-45	1936	Members of the Congress, let these challenges be met. If this is what these  gentlemen want, let them say so to the Congress of the United States. Let  them no longer hide their dissent in a cowardly cloak of generality. Let  them define the issue. We have been specific in our affirmative action. Let  them be specific in their negative attack.  
1936-46	1936	But the challenge faced by this Congress is more menacing than merely a  return to the past--bad as that would be. Our resplendent economic autocracy  does not want to return to that individualism of which they prate, even  though the advantages under that system went to the ruthless and the  strong. They realize that in thirty-four months we have built up new  instruments of public power. In the hands of a people's Government this  power is wholesome and proper. But in the hands of political puppets of an  economic autocracy such power would provide shackles for the liberties of  the people. Give them their way and they will take the course of every  autocracy of the past--power for themselves, enslavement for the public.  
1936-47	1936	Their weapon is the weapon of fear. I have said, "The only thing we have to  fear is fear itself." That is as true today as it was in 1933. But such  fear as they instill today is not a natural fear, a normal fear; it is a  synthetic, manufactured, poisonous fear that is being spread subtly,  expensively and cleverly by the same people who cried in those other days,  "Save us, save us, lest we perish."  
1936-48	1936	I am confident that the Congress of the United States well understands the  facts and is ready to wage unceasing warfare against those who seek a  continuation of that spirit of fear. The carrying out of the laws of the  land as enacted by the Congress requires protection until final  adjudication by the highest tribunal of the land. The Congress has the  right and can find the means to protect its own prerogatives.  
1936-49	1936	We are justified in our present confidence. Restoration of national income,  which shows continuing gains for the third successive year, supports the  normal and logical policies under which agriculture and industry are  returning to full activity. Under these policies we approach a balance of  the national budget. National income increases; tax receipts, based on that  income, increase without the levying of new taxes. That is why I am able to  say to this, the Second Session of the 74th Congress, that it is my belief  based on existing laws that no new taxes, over and above the present taxes,  are either advisable or necessary.  
1936-50	1936	National income increases; employment increases. Therefore, we can look  forward to a reduction in the number of those citizens who are in need.  Therefore, also, we can anticipate a reduction in our appropriations for  relief.  
1936-51	1936	In the light of our substantial material progress, in the light of the  increasing effectiveness of the restoration of popular rule, I recommend to  the Congress that we advance; that we do not retreat. I have confidence  that you will not fail the people of the Nation whose mandate you have  already so faithfully fulfilled.  
1936-52	1936	I repeat, with the same faith and the same determination, my words of March  4, 1933: "We face the arduous days that lie before us in the warm courage  of national unity; with a clear consciousness of seeking old and precious  moral values; with a clean satisfaction that comes from the stern  performance of duty by old and young alike. We aim at the assurance of a  rounded and permanent national life. We do not distrust the future of  essential democracy."  
1936-53	1936	I cannot better end this message on the state of the Union than by  repeating the words of a wise philosopher at whose feet I sat many, many  years ago.  
1936-54	1936	"What great crises teach all men whom the example and counsel of the brave  inspire is the lesson: Fear not, view all the tasks of life as sacred, have  faith in the triumph of the ideal, give daily all that you have to give, be  loyal and rejoice whenever you find yourselves part of a great ideal  enterprise. You, at this moment, have the honor to belong to a generation  whose lips are touched by fire. You live in a land that now enjoys the  blessings of peace. But let nothing human be wholly alien to you. The human  race now passes through one of its great crises. New ideas, new issues--a  new call for men to carry on the work of righteousness, of charity, of  courage, of patience, and of loyalty. . . . However memory bring back this  moment to your minds, let it be able to say to you: That was a great  moment. It was the beginning of a new era. . . . This world in its crisis  called for volunteers, for men of faith in life, of patience in service, of  charity and of insight. I responded to the call however I could. I  volunteered to give myself to my Master--the cause of humane and brave  living. I studied, I loved, I labored, unsparingly and hopefully, to be  worthy of my generation."  
1937-1	1937	Mr. President, Mr. Speaker, Members of the Congress of the United States:  
1937-2	1937	For the first time in our national history a President delivers his Annual  Message to a new Congress within a fortnight of the expiration of his term  of office. While there is no change in the Presidency this year, change  will occur in future years. It is my belief that under this new  constitutional practice, the President should in every fourth year, in so  far as seems reasonable, review the existing state of our national affairs  and outline broad future problems, leaving specific recommendations for  future legislation to be made by the President about to be inaugurated.  
1937-3	1937	At this time, however, circumstances of the moment compel me to ask your  immediate consideration of: First, measures extending the life of certain  authorizations and powers which, under present statutes, expire within a  few weeks; second, an addition to the existing Neutrality Act to cover  specific points raised by the unfortunate civil strife in Spain; and,  third, a deficiency appropriation bill for which I shall submit estimates  this week.  
1937-4	1937	In March, 1933, the problems which faced our Nation and which only our  national Government had the resources to meet were more serious even than  appeared on the surface.  
1937-5	1937	It was not only that the visible mechanism of economic life had broken  down. More disturbing was the fact that long neglect of the needs of the  underprivileged had brought too many of our people to the verge of doubt as  to the successful adaptation of our historic traditions to the complex  modern world. In that lay a challenge to our democratic form of Government  itself.  
1937-6	1937	Ours was the task to prove that democracy could be made to function in the  world of today as effectively as in the simpler world of a hundred years  ago. Ours was the task to do more than to argue a theory. The times  required the confident answer of performance to those whose instinctive  faith in humanity made them want to believe that in the long run democracy  would prove superior to more extreme forms of Government as a process of  getting action when action was wisdom, without the spiritual sacrifices  which those other forms of Government exact.  
1937-7	1937	That challenge we met. To meet it required unprecedented activities under  Federal leadership to end abuses, to restore a large measure of material  prosperity, to give new faith to millions of our citizens who had been  traditionally taught to expect that democracy would provide continuously  wider opportunity and continuously greater security in a world where  science was continuously making material riches more available to man.  
1937-8	1937	In the many methods of attack with which we met these problems, you and I,  by mutual understanding and by determination to cooperate, helped to make  democracy succeed by refusing to permit unnecessary disagreement to arise  between two of our branches of Government. That spirit of cooperation was  able to solve difficulties of extraordinary magnitude and ramification with  few important errors, and at a cost cheap when measured by the immediate  necessities and the eventual results.  
1937-9	1937	I look forward to a continuance of that cooperation in the next four years.  I look forward also to a continuance of the basis of that cooperation--  mutual respect for each other's proper sphere of functioning in a democracy  which is working well, and a common-sense realization of the need for play  in the joints of the machine.  
1937-10	1937	On that basis, it is within the right of the Congress to determine which of  the many new activities shall be continued or abandoned, increased or  curtailed.  
1937-11	1937	On that same basis, the President alone has the responsibility for their  administration. I find that this task of Executive management has reached  the point where our administrative machinery needs comprehensive  overhauling. I shall, therefore, shortly address the Congress more fully in  regard to modernizing and improving the Executive branch of the  Government.  
1937-12	1937	That cooperation of the past four years between the Congress and the  President has aimed at the fulfillment of a twofold policy: first, economic  recovery through many kinds of assistance to agriculture, industry and  banking; and, second, deliberate improvement in the personal security and  opportunity of the great mass of our people.  
1937-13	1937	The recovery we sought was not to be merely temporary. It was to be a  recovery protected from the causes of previous disasters. With that aim in  view--to prevent a future similar crisis--you and I joined in a series of  enactments--safe banking and sound currency, the guarantee of bank deposits,  protection for the investor in securities, the removal of the threat of  agricultural surpluses, insistence on collective bargaining, the outlawing  of sweat shops, child labor and unfair trade practices, and the beginnings  of security for the aged and the worker.  
1937-14	1937	Nor was the recovery we sought merely a purposeless whirring of machinery.  It is important, of course, that every man and woman in the country be able  to find work, that every factory run, that business and farming as a whole  earn profits. But Government in a democratic Nation does not exist solely,  or even primarily, for that purpose.  
1937-15	1937	It is not enough that the wheels turn. They must carry us in the direction  of a greater satisfaction in life for the average man. The deeper purpose  of democratic government is to assist as many of its citizens as possible,  especially those who need it most, to improve their conditions of life, to  retain all personal liberty which does not adversely affect their  neighbors, and to pursue the happiness which comes with security and an  opportunity for recreation and culture.  
1937-16	1937	Even with our present recovery we are far from the goal of that deeper  purpose. There are far-reaching problems still with us for which democracy  must find solutions if it is to consider itself successful.  
1937-17	1937	For example, many millions of Americans still live in habitations which not  only fail to provide the physical benefits of modern civilization but breed  disease and impair the health of future generations. The menace exists not  only in the slum areas of the very large cities, but in many smaller cities  as well. It exists on tens of thousands of farms, in varying degrees, in  every part of the country.  
1937-18	1937	Another example is the prevalence of an un-American type of tenant farming.  I do not suggest that every farm family has the capacity to earn a  satisfactory living on its own farm. But many thousands of tenant farmers,  indeed most of them, with some financial assistance and with some advice  and training, can be made self-supporting on land which can eventually  belong to them. The Nation would be wise to offer them that chance instead  of permitting them to go along as they do now, year after year, with  neither future security as tenants nor hope of ownership of their homes nor  expectation of bettering the lot of their children.  
1937-19	1937	Another national problem is the intelligent development of our social  security system, the broadening of the services it renders, and practical  improvement in its operation. In many Nations where such laws are in  effect, success in meeting the expectations of the community has come  through frequent amendment of the original statute.  
1937-20	1937	And, of course, the most far-reaching and the most inclusive problem of all  is that of unemployment and the lack of economic balance of which  unemployment is at once the result and the symptom. The immediate question  of adequate relief for the needy unemployed who are capable of performing  useful work, I shall discuss with the Congress during the coming months.  The broader task of preventing unemployment is a matter of long-range  evolutionary policy. To that we must continue to give our best thought and  effort. We cannot assume that immediate industrial and commercial activity  which mitigates present pressures justifies the national Government at this  time in placing the unemployment problem in a filing cabinet of finished  business.  
1937-21	1937	Fluctuations in employment are tied to all other wasteful fluctuations in  our mechanism of production and distribution. One of these wastes is  speculation. In securities or commodities, the larger the volume of  speculation, the wider become the upward and downward swings and the more  certain the result that in the long run there will be more losses than  gains in the underlying wealth of the community.  
1937-22	1937	And, as is now well known to all of us, the same net loss to society comes  from reckless overproduction and monopolistic underproduction of natural  and manufactured commodities.  
1937-23	1937	Overproduction, underproduction and speculation are three evil sisters who  distill the troubles of unsound inflation and disastrous deflation. It is  to the interest of the Nation to have Government help private enterprise to  gain sound general price levels and to protect those levels from wide  perilous fluctuations. We know now that if early in 1931 Government had  taken the steps which were taken two and three years later, the depression  would never have reached the depths of the beginning of 1933.  
1937-24	1937	Sober second thought confirms most of us in the belief that the broad  objectives of the National Recovery Act were sound. We know now that its  difficulties arose from the fact that it tried to do too much. For example,  it was unwise to expect the same agency to regulate the length of working  hours, minimum wages, child labor and collective bargaining on the one hand  and the complicated questions of unfair trade practices and business  controls on the other.  
1937-25	1937	The statute of N.R.A. has been outlawed. The problems have not. They are  still with us.  
1937-26	1937	That decent conditions and adequate pay for labor, and just return for  agriculture, can be secured through parallel and simultaneous action by  forty-eight States is a proven impossibility. It is equally impossible to  obtain curbs on monopoly, unfair trade practices and speculation by State  action alone. There are those who, sincerely or insincerely, still cling to  State action as a theoretical hope. But experience with actualities makes  it clear that Federal laws supplementing State laws are needed to help  solve the problems which result from modern invention applied in an  industrialized Nation which conducts its business with scant regard to  State lines.  
1937-27	1937	During the past year there has been a growing belief that there is little  fault to be found with the Constitution of the United States as it stands  today. The vital need is not an alteration of our fundamental law, but an  increasingly enlightened view with reference to it. Difficulties have grown  out of its interpretation; but rightly considered, it can be used as an  instrument of progress, and not as a device for prevention of action.  
1937-28	1937	It is worth our while to read and reread the preamble of the Constitution,  and Article I thereof which confers the legislative powers upon the  Congress of the United States. It is also worth our while to read again the  debates in the Constitutional Convention of one hundred and fifty years  ago. From such reading, I obtain the very definite thought that the members  of that Convention were fully aware that civilization would raise problems  for the proposed new Federal Government, which they themselves could not  even surmise; and that it was their definite intent and expectation that a  liberal interpretation in the years to come would give to the Congress the  same relative powers over new national problems as they themselves gave to  the Congress over the national problems of their day.  
1937-29	1937	In presenting to the Convention the first basic draft of the Constitution,  Edmund Randolph explained that it was the purpose "to insert essential  principles only, lest the operation of government should be clogged by  rendering those provisions permanent and unalterable which ought to be  accommodated to times and events."  
1937-30	1937	With a better understanding of our purposes, and a more intelligent  recognition of our needs as a Nation, it is not to be assumed that there  will be prolonged failure to bring legislative and judicial action into  closer harmony. Means must be found to adapt our legal forms and our  judicial interpretation to the actual present national needs of the largest  progressive democracy in the modern world.  
1937-31	1937	That thought leads to a consideration of world problems. To go no further  back than the beginning of this century, men and women everywhere were  seeking conditions of life very different from those which were customary  before modern invention and modern industry and modern communications had  come into being. The World war, for all of its tragedy, encouraged these  demands, and stimulated action to fulfill these new desires.  
1937-32	1937	Many national Governments seemed unable adequately to respond; and, often  with the improvident assent of the masses of the people themselves, new  forms of government were set up with oligarchy taking the place of  democracy. In oligarchies, militarism has leapt forward, while in those  Nations which have retained democracy, militarism has waned.  
1937-33	1937	I have recently visited three of our sister Republics in South America. The  very cordial receptions with which I was greeted were in tribute to  democracy. To me the outstanding observation of that visit was that the  masses of the peoples of all the Americas are convinced that the democratic  form of government can be made to succeed and do not wish to substitute for  it any other form of government. They believe that democracies are best  able to cope with the changing problems of modern civilization within  themselves, and that democracies are best able to maintain peace among  themselves.  
1937-34	1937	The Inter-American Conference, operating on these fundamental principles of  democracy, did much to assure peace in this Hemisphere. Existing peace  machinery was improved. New instruments to maintain peace and eliminate  causes of war were adopted. Wider protection of the interests of the  American Republics in the event of war outside the Western Hemisphere was  provided. Respect for, and observance of, international treaties and  international law were strengthened. Principles of liberal trade policies,  as effective aids to the maintenance of peace, were reaffirmed. The  intellectual and cultural relationships among American Republics were  broadened as a part of the general peace program.  
1937-35	1937	In a world unhappily thinking in terms of war, the representatives of  twenty-one Nations sat around a table, in an atmosphere of complete  confidence and understanding, sincerely discussing measures for maintaining  peace. Here was a great and a permanent achievement directly affecting the  lives and security of the two hundred and fifty million human beings who  dwell in this Western Hemisphere. Here was an example which must have a  wholesome effect upon the rest of the world.  
1937-36	1937	In a very real sense, the Conference in Buenos Aires sent forth a message  on behalf of all the democracies of the world to those Nations which live  otherwise. Because such other Governments are perhaps more spectacular, it  was high time for democracy to assert itself.  
1937-37	1937	Because all of us believe that our democratic form of government can cope  adequately with modern problems as they arise, it is patriotic as well as  logical for us to prove that we can meet new national needs with new laws  consistent with an historic constitutional framework clearly intended to  receive liberal and not narrow interpretation.  
1937-38	1937	The United States of America, within itself, must continue the task of  making democracy succeed.  
1937-39	1937	In that task the Legislative branch of our Government will, I am confident,  continue to meet the demands of democracy whether they relate to the  curbing of abuses, the extension of help to those who need help, or the  better balancing of our interdependent economies.  
1937-40	1937	So, too, the Executive branch of the Government must move forward in this  task, and, at the same time, provide better management for administrative  action of all kinds.  
1937-41	1937	The Judicial branch also is asked by the people to do its part in making  democracy successful. We do not ask the Courts to call non-existent powers  into being, but we have a right to expect that conceded powers or those  legitimately implied shall be made effective instruments for the common  good.  
1937-42	1937	The process of our democracy must not be imperiled by the denial of  essential powers of free government.  
1937-43	1937	Your task and mine is not ending with the end of the depression. The people  of the United States have made it clear that they expect us to continue our  active efforts in behalf of their peaceful advancement.  
1937-44	1937	In that spirit of endeavor and service I greet the 75th Congress at the  beginning of this auspicious New Year.  
1938-1	1938	Mr. President, Mr. Speaker, Members of the Senate and of the House of  Representatives:  
1938-2	1938	In addressing the Congress on the state of the Union present facts and  future hazards demand that I speak clearly and earnestly of the causes  which underlie events of profound concern to all.  
1938-3	1938	In spite of the determination of this Nation for peace, it has become clear  that acts and policies of nations in other parts of the world have  far-reaching effects not only upon their immediate neighbors but also on  us.  
1938-4	1938	I am thankful that I can tell you that our Nation is at peace. It has been  kept at peace despite provocations which in other days, because of their  seriousness, could well have engendered war. The people of the United  States and the Government of the United States have shown capacity for  restraint and a civilized approach to the purposes of peace, while at the  same time we maintain the integrity inherent in the sovereignty of  130,000,000 people, lest we weaken or destroy our influence for peace and  jeopardize the sovereignty itself.  
1938-5	1938	It is our traditional policy to live at peace with other nations. More than  that, we have been among the leaders in advocating the use of pacific  methods of discussion and conciliation in international differences. We  have striven for the reduction of military forces.  
1938-6	1938	But in a world of high tension and disorder, in a world where stable  civilization is actually threatened, it becomes the responsibility of each  nation which strives for peace at home and peace with and among others to  be strong enough to assure the observance of those fundamentals of peaceful  solution of conflicts which are the only ultimate basis for orderly  existence.  
1938-7	1938	Resolute in our determination to respect the rights of others, and to  command respect for the rights of ourselves, we must keep ourselves  adequately strong in self-defense.  
1938-8	1938	There is a trend in the world away from the observance both of the letter  and the spirit of treaties. We propose to observe, as we have in the past,  our own treaty obligations to the limit; but we cannot be certain of  reciprocity on the part of others.  
1938-9	1938	Disregard for treaty obligations seems to have followed the surface trend  away from the democratic representative form of government. It would seem,  therefore, that world peace through international agreements is most safe  in the hands of democratic representative governments--or, in other words,  peace is most greatly jeopardized in and by those nations where democracy  has been discarded or has never developed.  
1938-10	1938	I have used the words "surface trend," for I still believe that civilized  man increasingly insists and in the long run will insist on genuine  participation in his own government. Our people believe that over the years  democracies of the world will survive, and that democracy will be restored  or established in those nations which today know it not. In that faith lies  the future peace of mankind.  
1938-11	1938	At home, conditions call for my equal candor. Events of recent months are  new proof that we cannot conduct a national government after the practice  of 1787, or 1837 or 1887, for the obvious reason that human needs and human  desires are infinitely greater, infinitely more difficult to meet than in  any previous period in the life of our Republic. Hitherto it has been an  acknowledged duty of government to meet these desires and needs: nothing  has occurred of late to absolve the Congress, the Courts or the President  from that task. It faces us as squarely, as insistently, as in March,  1933.  
1938-12	1938	Much of trouble in our own lifetime has sprung from a long period of  inaction--from ignoring what fundamentally was happening to us, and from a  time-serving unwillingness to face facts as they forced themselves upon  us.  
1938-13	1938	Our national life rests on two nearly equal producing forces, agriculture  and industry, each employing about one-third of our citizens. The other  third transports and distributes the products of the first two, or performs  special services for the whole.  
1938-14	1938	The first great force, agriculture--and with it the production of timber,  minerals and other natural resources--went forward feverishly and  thoughtlessly until nature rebelled and we saw deserts encroach, floods  destroy, trees disappear and soil exhausted.  
1938-15	1938	At the same time we have been discovering that vast numbers of our farming  population live in a poverty more abject than that of many of the farmers  of Europe whom we are wont to call peasants; that the prices of our  products of agriculture are too often dependent on speculation by  non-farming groups; and that foreign nations, eager to become  self-sustaining or ready to put virgin land under the plough are no longer  buying our surpluses of cotton and wheat and lard and tobacco and fruit as  they had before.  
1938-16	1938	Since 1933 we have knowingly faced a choice of three remedies. First, to  cut our cost of farm production below that of other nations--an obvious  impossibility in many crops today unless we revert to human slavery or its  equivalent.  
1938-17	1938	Second, to make the government the guarantor of farm prices and the  underwriter of excess farm production without limit--a course which would  bankrupt the strongest government in the world in a decade.  
1938-18	1938	Third, to place the primary responsibility directly on the farmers  themselves, under the principle of majority rule, so that they may decide,  with full knowledge of the facts of surpluses, scarcities, world markets  and domestic needs, what the planting of each crop should be in order to  maintain a reasonably adequate supply which will assure a minimum adequate  price under the normal processes of the law of supply and demand.  
1938-19	1938	That means adequacy of supply but not glut. It means adequate reserves  against the day of drought. It is shameless misrepresentation to call this  a policy of scarcity. It is in truth insurance before the fact, instead of  government subsidy after the fact.  
1938-20	1938	Any such plan for the control of excessive surpluses and the speculation  they bring has two enemies. There are those well meaning theorists who harp  on the inherent right of every free born American to do with his land what  he wants--to cultivate it well--or badly; to conserve his timber by cutting  only the annual increment thereof--or to strip it clean, let fire burn the  slash, and erosion complete the ruin; to raise only one crop--and if that  crop fails, to look for food and support from his neighbors or his  government.  
1938-21	1938	That, I assert is not an inherent right of citizenship. For if a man farms  his land to the waste of the soil or the trees, he destroys not only his  own assets but the Nation's assets as well. Or if by his methods he makes  himself, year after year, a financial hazard of the community and the  government, he becomes not only a social problem but an economic menace.  The day has gone by when it could be claimed that government has no  interest in such ill-considered practices and no right through  representative methods to stop them.  
1938-22	1938	The other group of enemies is perhaps less well-meaning. It includes those  who for partisan purposes oppose each and every practical effort to help  the situation, and also those who make money from undue fluctuations in  crop prices.  
1938-23	1938	I gladly note that measures which seek to initiate a government program for  a balanced agriculture are now in conference between the two Houses of the  Congress. In their final consideration, I hope for a sound consistent  measure which will keep the cost of its administration within the figure of  current government expenditures in aid of agriculture. The farmers of this  Nation know that a balanced output can be put into effect without excessive  cost and with the cooperation of the great majority of them.  
1938-24	1938	If this balance can be created by an all-weather farm program, our farm  population will soon be assured of relatively constant purchasing power.  From this will flow two other practical results: the consuming public will  be protected against excessive food and textile prices, and the industries  of the Nation and their workers will find a steadier demand for wares sold  to the agricultural third of our people.  
1938-25	1938	To raise the purchasing power of the farmer is, however, not enough. It  will not stay raised if we do not also raise the purchasing power of that  third of the Nation which receives its income from industrial employment.  Millions of industrial workers receive pay so low that they have little  buying power. Aside from the undoubted fact that they thereby suffer great  human hardship, they are unable to buy adequate food and shelter, to  maintain health or to buy their share of manufactured goods.  
1938-26	1938	We have not only seen minimum wage and maximum hour provisions prove their  worth economically and socially under government auspices in 1933, 1934 and  1935, but the people of this country, by an overwhelming vote, are in favor  of having the Congress--this Congress--put a floor below which industrial  wages shall not fall, and a ceiling beyond which the hours of industrial  labor shall not rise.  
1938-27	1938	Here again let us analyze the opposition. A part of it is sincere in  believing that an effort thus to raise the purchasing power of lowest paid  industrial workers is not the business of the Federal Government. Others  give "lip service" to a general objective, but do not like any specific  measure that is proposed. In both cases it is worth our while to wonder  whether some of these opponents are not at heart opposed to any program for  raising the wages of the underpaid or reducing the hours of the  overworked.  
1938-28	1938	Another group opposes legislation of this type on the ground that cheap  labor will help their locality to acquire industries and outside capital,  or to retain industries which today are surviving only because of existing  low wages and long hours. It has been my thought that, especially during  these past five years, this Nation has grown away from local or sectional  selfishness and toward national patriotism and unity. I am disappointed by  some recent actions and by some recent utterances which sound like the  philosophy of half a century ago.  
1938-29	1938	There are many communities in the United States where the average family  income is pitifully low. It is in those communities that we find the  poorest educational facilities and the worst conditions of health. Why? It  is not because they are satisfied to live as they do. It is because those  communities have the lowest per capita wealth and income; therefore, the  lowest ability to pay taxes; and, therefore, inadequate functioning of  local government.  
1938-30	1938	Such communities exist in the East, in the Middle West, in the Far West,  and in the South. Those who represent such areas in every part of the  country do their constituents ill service by blocking efforts to raise  their incomes, their property values and, therefore, their whole scale of  living. In the long run, the profits from Child labor, low pay and overwork  enure not to the locality or region where they exist but to the absentee  owners who have sent their capital into these exploited communities to  gather larger profits for themselves. Indeed, new enterprises and new  industries which bring permanent wealth will come more readily to those  communities which insist on good pay and reasonable hours, for the simple  reason that there they will find a greater industrial efficiency and  happier workers.  
1938-31	1938	No reasonable person seeks a complete uniformity in wages in every part of  the United States; nor does any reasonable person seek an immediate and  drastic change from the lowest pay to the highest pay. We are seeking, of  course, only legislation to end starvation wages and intolerable hours;  more desirable wages are and should continue to be the product of  collective bargaining.  
1938-32	1938	Many of those who represent great cities have shown their understanding of  the necessity of helping the agricultural third of the Nation. I hope that  those who represent constituencies primarily agricultural will not  underestimate the importance of extending like aid to the industrial  third.  
1938-33	1938	Wage and hour legislation, therefore, is a problem which is definitely  before this Congress for action. It is an essential part of economic  recovery. It has the support of an overwhelming majority of our people in  every walk of life. They have expressed themselves through the ballot box.  
1938-34	1938	Again I revert to the increase of national purchasing power as an  underlying necessity of the day. If you increase that purchasing power for  the farmers and for the industrial workers, especially for those in both  groups who have least of it today, you will increase the purchasing power  of the final third of our population--those who transport and distribute the  products of farm and factory, and those of the professions who serve all  groups. I have tried to make clear to you, and through you to the people of  the United States, that this is an urgency which must be met by complete  and not by partial action.  
1938-35	1938	If it is met, if the purchasing power of the Nation as a whole--in other  words, the total of the Nation's income--can be still further increased,  other happy results will flow from such increase.  
1938-36	1938	We have raised the Nation's income from thirty-eight billion dollars in the  year 1932 to about sixty-eight billion dollars in the year 1937. Our goal,  our objective is to raise it to ninety or one hundred billion dollars.  
1938-37	1938	We have heard much about a balanced budget, and it is interesting to note  that many of those who have pleaded for a balanced budget as the sole need  now come to me to plead for additional government expenditures at the  expense of unbalancing the budget. As the Congress is fully aware, the  annual deficit, large for several years, has been declining the last fiscal  year and this. The proposed budget for 1939, which I shall shortly send to  the Congress, will exhibit a further decrease in the deficit, though not a  balance between income and outgo.  
1938-38	1938	To many who have pleaded with me for an immediate balancing of the budget,  by a sharp curtailment or even elimination of government functions, I have  asked the question: "What present expenditures would you reduce or  eliminate?" And the invariable answer has been "that is not my business--I  know nothing of the details, but I am sure that it could be done." That is  not what you or I would call helpful citizenship.  
1938-39	1938	On only one point do most of them have a suggestion. They think that relief  for the unemployed by the giving of work is wasteful, and when I pin them  down I discover that at heart they are actually in favor of substituting a  dole in place of useful work. To that neither I nor, I am confident, the  Senators and Representatives in the Congress will ever consent.  
1938-40	1938	I am as anxious as any banker or industrialist or business man or investor  or economist that the budget of the United States Government be brought  into balance as quickly as possible. But I lay down certain conditions  which seem reasonable and which I believe all should accept.  
1938-41	1938	The first condition is that we continue the policy of not permitting any  needy American who can and is willing to work to starve because the Federal  Government does not provide the work.  
1938-42	1938	The second is that the Congress and the Executive join hands in eliminating  or curtailing any Federal activity which can be eliminated or curtailed or  even postponed without harming necessary government functions or the safety  of the Nation from a national point of view.  
1938-43	1938	The third is to raise the purchasing power of the Nation to the point that  the taxes on this purchasing power--or, in other words, on the Nation's  income--will be sufficient to meet the necessary expenditures of the  national government.  
1938-44	1938	I have hitherto stated that, in my judgment, the expenditures of the  national government cannot be cut much below seven billion dollars a year  without destroying essential functions or letting people starve. That sum  can be raised and will be cheerfully provided by the American people, if we  can increase the Nation's income to a point well beyond the present level.  
1938-45	1938	This does not mean that as the Nation's income goes up the Federal  expenditures should rise in proportion. On the contrary, the Congress and  the Executive should use every effort to hold the normal Federal  expenditures to approximately the present level, thus making it possible,  with an increase in the Nation's income and the resulting increase in tax  receipts, not only to balance future budgets but to reduce the debt.  
1938-46	1938	In line with this policy fall my former recommendations for the  reorganization and improvement of the administrative structure of the  government, both for immediate Executive needs and for the planning of  future national needs. I renew those recommendations.  
1938-47	1938	In relation to tax changes, three things should be kept in mind. First, the  total sum to be derived by the Federal Treasury must not be decreased as a  result of any changes in schedules. Second, abuses by individuals or  corporations designed to escape tax-paying by using various methods of  doing business, corporate and otherwise--abuses which we have sought, with  great success, to end--must not be restored. Third, we should rightly change  certain provisions where they are proven to work definite hardship,  especially on the small business men of the Nation. But, speculative income  should not be favored over earned income.  
1938-48	1938	It is human nature to argue that this or that tax is responsible for every  ill. It is human nature on the part of those who pay graduated taxes to  attack all taxes based on the principle of ability to pay. These are the  same complainants who for a generation blocked the imposition of a  graduated income tax. They are the same complainants who would impose the  type of flat sales tax which places the burden of government more on those  least able to pay and less on those most able to pay.  
1938-49	1938	Our conclusion must be that while proven hardships should be corrected,  they should not be corrected in such a way as to restore abuses already  terminated or to shift a greater burden to the less fortunate.  
1938-50	1938	This subject leads naturally into the wider field of the public attitude  toward business. The objective of increasing the purchasing power of the  farming third, the industrial third and the service third of our population  presupposes the cooperation of what we call capital and labor.  
1938-51	1938	Capital is essential; reasonable earnings on capital are essential; but  misuse of the powers of capital or selfish suspension of the employment of  capital must be ended, or the capitalistic system will destroy itself  through its own abuses.  
1938-52	1938	The overwhelming majority of business men and bankers intend to be good  citizens. Only a small minority have displayed poor citizenship by engaging  in practices which are dishonest or definitely harmful to society. This  statement is straightforward and true. No person in any responsible place  in the Government of the United States today has ever taken any position  contrary to it.  
1938-53	1938	But, unfortunately for the country, when attention is called to, or attack  is made on specific misuses of capital, there has been a deliberate purpose  on the part of the condemned minority to distort the criticism into an  attack on all capital. That is wilful deception but it does not long  deceive.  
1938-54	1938	If attention is called to, or attack made on, certain wrongful business  practices, there are those who are eager to call it "an attack on all  business." That, too, is wilful deception that will not long deceive. Let  us consider certain facts:  
1938-55	1938	There are practices today which most people believe should be ended. They  include tax avoidance through corporate and other methods, which I have  previously mentioned; excessive capitalization, investment write-ups and  security manipulations; price rigging and collusive bidding in defiance of  the spirit of the antitrust laws by methods which baffle prosecution under  the present statutes. They include high-pressure salesmanship which creates  cycles of overproduction within given industries and consequent recessions  in production until such time as the surplus is consumed; the use of patent  laws to enable larger corporations to maintain high prices and withhold  from the public the advantages of the progress of science; unfair  competition which drives the smaller producer out of business locally,  regionally or even on a national scale; intimidation of local or state  government to prevent the enactment of laws for the protection of labor by  threatening to move elsewhere; the shifting of actual production from one  locality or region to another in pursuit of the cheapest wage scale.  
1938-56	1938	The enumeration of these abuses does not mean that business as a whole is  guilty of them. Again, it is deception that will not long deceive to tell  the country that an attack on these abuses is an attack on business.  
1938-57	1938	Another group of problems affecting business, which cannot be termed  specific abuses, gives us food for grave thought about the future.  Generically such problems arise out of the concentration of economic  control to the detriment of the body politic--control of other people's  money, other people's labor, other people's lives.  
1938-58	1938	In many instances such concentrations cannot be justified on the ground of  operating efficiency, but have been created for the sake of securities  profits, financial control, the suppression of competition and the ambition  for power over others. In some lines of industry a very small numerical  group is in such a position of influence that its actions are of necessity  followed by the other units operating in the same field.  
1938-59	1938	That such influences operate to control banking and finance is equally  true, in spite of the many efforts, through Federal legislation, to take  such control out of the hands of a small group. We have but to talk with  hundreds of small bankers throughout the United States to realize that  irrespective of local conditions, they are compelled in practice to accept  the policies laid down by a small number of the larger banks in the Nation.  The work undertaken by Andrew Jackson and Woodrow Wilson is not finished  yet.  
1938-60	1938	The ownership of vast properties or the organization of thousands of  workers creates a heavy obligation of public service. The power should not  be sought or sanctioned unless the responsibility is accepted as well. The  man who seeks freedom from such responsibility in the name of individual  liberty is either fooling himself or trying to cheat his fellow men. He  wants to eat the fruits of orderly society without paying for them.  
1938-61	1938	As a Nation we have rejected any radical revolutionary program. For a  permanent correction of grave weaknesses in our economic system we have  relied on new applications of old democratic processes. It is not necessary  to recount what has been accomplished in preserving the homes and  livelihood of millions of workers on farms and in cities, in reconstructing  a sound banking and credit system, in reviving trade and industry, in  reestablishing security of life and property. All we need today is to look  upon the fundamental, sound economic conditions to know that this business  recession causes more perplexity than fear on the part of most people and  to contrast our prevailing mental attitude with the terror and despair of  five years ago.  
1938-62	1938	Furthermore, we have a new moral climate in America. That means that we ask  business and finance to recognize that fact, to cure such inequalities as  they can cure without legislation but to join their government in the  enactment of legislation where the ending of abuses and the steady  functioning of our economic system calls for government assistance. The  Nation has no obligation to make America safe either for incompetent  business men or for business men who fail to note the trend of the times  and continue the use of machinery of economics and practices of finance as  outworn as the cotton spindle of 1870.  
1938-63	1938	Government can be expected to cooperate in every way with the business of  the Nation provided the component parts of business abandon practices which  do not belong to this day and age, and adopt price and production policies  appropriate to the times.  
1938-64	1938	In regard to the relationship of government to certain processes of  business, to which I have referred, it seems clear to me that existing laws  undoubtedly require reconstruction. I expect, therefore, to address the  Congress in a special message on this subject, and I hope to have the help  of business in the efforts of government to help business.  
1938-65	1938	I have spoken of labor as another essential in the three great groups of  the population in raising the Nation's income. Definite strides in  collective bargaining have been made and the right of labor to organize has  been nationally accepted. Nevertheless in the evolution of the process  difficult situations have arisen in localities and among groups.  Unfortunate divisions relating to jurisdiction among the workers themselves  have retarded production within given industries and have, therefore,  affected related industries. The construction of homes and other buildings  has been hindered in some localities not only by unnecessarily high prices  for materials but also by certain hourly wage scales.  
1938-66	1938	For economic and social reasons our principal interest for the near future  lies along two lines: first, the immediate desirability of increasing the  wages of the lowest paid groups in all industry; and, second, in thinking  in terms of regularizing the work of the individual worker more greatly  through the year--in other words, in thinking more in terms of the worker's  total pay for a period of a whole year rather than in terms of his  remuneration by the hour or by the day.  
1938-67	1938	In the case of labor as in the case of capital, misrepresentation of the  policy of the government of the United States is deception which will not  long deceive. In both cases we seek cooperation. In every case power and  responsibility must go hand in hand.  
1938-68	1938	I have spoken of economic causes which throw the Nation's income out of  balance; I have spoken of practices and abuses which demand correction  through the cooperation of capital and labor with the government. But no  government can help the destinies of people who insist in putting sectional  and class consciousness ahead of general weal. There must be proof that  sectional and class interests are prepared more greatly than they are today  to be national in outlook.  
1938-69	1938	A government can punish specific acts of spoliation; but no government can  conscript cooperation. We have improved some matters by way of remedial  legislation. But where in some particulars that legislation has failed we  cannot be sure whether it fails because some of its details are unwise or  because it is being sabotaged. At any rate, we hold our objectives and our  principles to be sound. We will never go back on them.  
1938-70	1938	Government has a final responsibility for the well-being of its  citizenship. If private cooperative endeavor fails to provide work for  willing hands and relief for the unfortunate, those suffering hardship from  no fault of their own have a right to call upon the Government for aid; and  a government worthy of its name must make fitting response.  
1938-71	1938	It is the opportunity and the duty of all those who have faith in  democratic methods as applied in industry, in agriculture and in business,  as well as in the field of politics, to do their utmost to cooperate with  government--without regard to political affiliation, special interests or  economic prejudices--in whatever program may be sanctioned by the chosen  representatives of the people.  
1938-72	1938	That presupposes on the part of the representatives of the people, a  program, its enactment and its administration.  
1938-73	1938	Not because of the pledges of party programs alone, not because of the  clear policies of the past five years, but chiefly because of the need of  national unity in ending mistakes of the past and meeting the necessities  of today, we must carry on. I do not propose to let the people down.  
1938-74	1938	I am sure the Congress of the United States will not let the people down.  
1939-1	1939	Mr. Vice President, Mr. Speaker, Members of the Senate and the Congress:  
1939-2	1939	In Reporting on the state of the nation, I have felt it necessary on  previous occasions to advise the Congress of disturbance abroad and of the  need of putting our own house in order in the face of storm signals from  across the seas. As this Seventy-sixth Congress opens there is need for  further warning.  
1939-3	1939	A war which threatened to envelop the world in flames has been averted; but  it has become increasingly clear that world peace is not assured.  
1939-4	1939	All about us rage undeclared wars--military and economic. All about us grow  more deadly armaments--military and economic. All about us are threats of  new aggression military and economic.  
1939-5	1939	Storms from abroad directly challenge three institutions indispensable to  Americans, now as always. The first is religion. It is the source of the  other two--democracy and international good faith.  
1939-6	1939	Religion, by teaching man his relationship to God, gives the individual a  sense of his own dignity and teaches him to respect himself by respecting  his neighbors.  
1939-7	1939	Democracy, the practice of self-government, is a covenant among free men to  respect the rights and liberties of their fellows.  
1939-8	1939	International good faith, a sister of democracy, springs from the will of  civilized nations of men to respect the rights and liberties of other  nations of men.  
1939-9	1939	In a modern civilization, all three--religion, democracy and international  good faith--complement and support each other.  
1939-10	1939	Where freedom of religion has been attacked, the attack has come from  sources opposed to democracy. Where democracy has been overthrown, the  spirit of free worship has disappeared. And where religion and democracy  have vanished, good faith and reason in international affairs have given  way to strident ambition and brute force.  
1939-11	1939	An ordering of society which relegates religion, democracy and good faith  among nations to the background can find no place within it for the ideals  of the Prince of Peace. The United States rejects such an ordering, and  retains its ancient faith.  
1939-12	1939	There comes a time in the affairs of men when they must prepare to defend,  not their homes alone, but the tenets of faith and humanity on which their  churches, their governments and their very civilization are founded. The  defense of religion, of democracy and of good faith among nations is all  the same fight. To save one we must now make up our minds to save all.  
1939-13	1939	We know what might happen to us of the United States if the new  philosophies of force were to encompass the other continents and invade our  own. We, no more than other nations, can afford to be surrounded by the  enemies of our faith and our humanity. Fortunate it is, therefore, that in  this Western Hemisphere we have, under a common ideal of democratic  government, a rich diversity of resources and of peoples functioning  together in mutual respect and peace.  
1939-14	1939	That Hemisphere, that peace, and that ideal we propose to do our share in  protecting against storms from any quarter. Our people and our resources  are pledged to secure that protection. From that determination no American  flinches.  
1939-15	1939	This by no means implies that the American Republics disassociate  themselves from the nations of other continents. It does not mean the  Americas against the rest of the world. We as one of the Republics  reiterate our willingness to help the cause of world peace. We stand on our  historic offer to take counsel with all other nations of the world to the  end that aggression among them be terminated, that the race of armaments  cease and that commerce be renewed.  
1939-16	1939	But the world has grown so small and weapons of attack so swift that no  nation can be safe in its will to peace so long as any other powerful  nation refuses to settle its grievances at the council table.  
1939-17	1939	For if any government bristling with implements of war insists on policies  of force, weapons of defense give the only safety.  
1939-18	1939	In our foreign relations we have learned from the past what not to do. From  new wars we have learned what we must do.  
1939-19	1939	We have learned that effective timing of defense, and the distant points  from which attacks may be launched are completely different from what they  were twenty years ago.  
1939-20	1939	We have learned that survival cannot be guaranteed by arming after the  attack begins--for there is new range and speed to offense.  
1939-21	1939	We have learned that long before any overt military act, aggression begins  with preliminaries of propaganda, subsidized penetration, the loosening of  ties of good will, the stirring of prejudice and the incitement to  disunion.  
1939-22	1939	We have learned that God-fearing democracies of the world which observe the  sanctity of treaties and good faith in their dealings with other nations  cannot safely be indifferent to international lawlessness anywhere. They  cannot forever let pass, without effective protest, acts of aggression  against sister nations--acts which automatically undermine all of us.  
1939-23	1939	Obviously they must proceed along practical, peaceful lines. But the mere  fact that we rightly decline to intervene with arms to prevent acts of  aggression does not mean that we must act as if there were no aggression at  all. Words may be futile, but war is not the only means of commanding a  decent respect for the opinions of mankind. There are many methods short of  war, but stronger and more effective than mere words, of bringing home to  aggressor governments the aggregate sentiments of our own people.  
1939-24	1939	At the very least, we can and should avoid any action, or any lack of  action, which will encourage, assist or build up an aggressor. We have  learned that when we deliberately try to legislate neutrality, our  neutrality laws may operate unevenly and unfairly--may actually give aid to  an aggressor and deny it to the victim. The instinct of self-preservation  should warn us that we ought not to let that happen any more.  
1939-25	1939	And we have learned something else--the old, old lesson that probability of  attack is mightily decreased by the assurance of an ever ready defense.  Since 1931, nearly eight years ago, world events of thunderous import have  moved with lightning speed. During these eight years many of our people  clung to the hope that the innate decency of mankind would protect the  unprepared who showed their innate trust in mankind. Today we are all  wiser--and sadder.  
1939-26	1939	Under modern conditions what we mean by "adequate defense"--a policy  subscribed to by all of us--must be divided into three elements. First, we  must have armed forces and defenses strong enough to ward off sudden attack  against strategic positions and key facilities essential to ensure  sustained resistance and ultimate victory. Secondly, we must have the  organization and location of those key facilities so that they may be  immediately utilized and rapidly expanded to meet all needs without danger  of serious interruption by enemy attack.  
1939-27	1939	In the course of a few days I shall send you a special message making  recommendations for those two essentials of defense against danger which we  cannot safely assume will not come.  
1939-28	1939	If these first two essentials are reasonably provided for, we must be able  confidently to invoke the third element, the underlying strength of  citizenship--the self-confidence, the ability, the imagination and the  devotion that give the staying power to see things through.  
1939-29	1939	A strong and united nation may be destroyed if it is unprepared against  sudden attack. But even a nation well armed and well organized from a  strictly military standpoint may, after a period of time, meet defeat if it  is unnerved by self-distrust, endangered by class prejudice, by dissension  between capital and labor, by false economy and by other unsolved social  problems at home.  
1939-30	1939	In meeting the troubles of the world we must meet them as one people--with a  unity born of the fact that for generations those who have come to our  shores, representing many kindreds and tongues, have been welded by common  opportunity into a united patriotism. If another form of government can  present a united front in its attack on a democracy, the attack must and  will be met by a united democracy. Such a democracy can and must exist in  the United States.  
1939-31	1939	A dictatorship may command the full strength of a regimented nation. But  the united strength of a democratic nation can be mustered only when its  people, educated by modern standards to know what is going on and where  they are going, have conviction that they are receiving as large a share of  opportunity for development, as large a share of material success and of  human dignity, as they have a right to receive.  
1939-32	1939	Our nation's program of social and economic reform is therefore a part of  defense, as basic as armaments themselves.  
1939-33	1939	Against the background of events in Europe, in Africa and in Asia during  these recent years, the pattern of what we have accomplished since 1933  appears in even clearer focus.  
1939-34	1939	For the first time we have moved upon deep-seated problems affecting our  national strength and have forged national instruments adequate to meet  them.  
1939-35	1939	Consider what the seemingly piecemeal struggles of these six years add up  to in terms of realistic national preparedness.  
1939-36	1939	We are conserving and developing natural resources--land, water power,  forests.  
1939-37	1939	We are trying to provide necessary food, shelter and medical care for the  health of our population.  
1939-38	1939	We are putting agriculture--our system of food and fibre supply--on a  sounder basis.  
1939-39	1939	We are strengthening the weakest spot in our system of industrial supply--  its long smouldering labor difficulties.  
1939-40	1939	We have cleaned up our credit system so that depositor and investor alike  may more readily and willingly make their capital available for peace or  war.  
1939-41	1939	We are giving to our youth new opportunities for work and education.  
1939-42	1939	We have sustained the morale of all the population by the dignified  recognition of our obligations to the aged, the helpless and the needy.  
1939-43	1939	Above all, we have made the American people conscious of their  interrelationship and their interdependence. They sense a common destiny  and a common need of each other. Differences of occupation, geography, race  and religion no longer obscure the nation's fundamental unity in thought  and in action.  
1939-44	1939	We have our difficulties, true--but we are a wiser and a tougher nation than  we were in 1929, or in 1932.  
1939-45	1939	Never have there been six years of such far-flung internal preparedness in  our history. And this has been done without any dictator's power to  command, without conscription of labor or confiscation of capital, without  concentration camps and without a scratch on freedom of speech, freedom of  the press or the rest of the Bill of Rights.  
1939-46	1939	We see things now that we could not see along the way. The tools of  government which we had in 1933 are outmoded. We have had to forge new  tools for a new role of government operating in a democracy--a role of new  responsibility for new needs and increased responsibility for old needs,  long neglected.  
1939-47	1939	Some of these tools had to be roughly shaped and still need some machining  down. Many of those who fought bitterly against the forging of these new  tools welcome their use today. The American people, as a whole, have  accepted them. The Nation looks to the Congress to improve the new  machinery which we have permanently installed, provided that in the process  the social usefulness of the machinery is not destroyed or impaired.  
1939-48	1939	All of us agree that we should simplify and improve laws if experience and  operation clearly demonstrate the need. For instance, all of us want better  provision for our older people under our social security legislation. For  the medically needy we must provide better care.  
1939-49	1939	Most of us agree that for the sake of employer and employee alike we must  find ways to end factional labor strife and employer-employee disputes.  
1939-50	1939	Most of us recognize that none of these tools can be put to maximum  effectiveness unless the executive processes of government are  revamped--reorganized, if you will--into more effective combination. And  even after such reorganization it will take time to develop administrative  personnel and experience in order to use our new tools with a minimum of  mistakes. The Congress, of course, needs no further information on this.  
1939-51	1939	With this exception of legislation to provide greater government  efficiency, and with the exception of legislation to ameliorate our  railroad and other transportation problems, the past three Congresses have  met in part or in whole the pressing needs of the new order of things.  
1939-52	1939	We have now passed the period of internal conflict in the launching of our  program of social reform. Our full energies may now be released to  invigorate the processes of recovery in order to preserve our reforms, and  to give every man and woman who wants to work a real job at a living wage.  
1939-53	1939	But time is of paramount importance. The deadline of danger from within and  from without is not within our control. The hour-glass may be in the hands  of other nations. Our own hour-glass tells us that we are off on a race to  make democracy work, so that we may be efficient in peace and therefore  secure in national defense.  
1939-54	1939	This time element forces us to still greater efforts to attain the full  employment of our labor and our capital.  
1939-55	1939	The first duty of our statesmanship is to bring capital and man-power  together.  
1939-56	1939	Dictatorships do this by main force. By using main force they apparently  succeed at it--for the moment. However we abhor their methods, we are  compelled to admit that they have obtained substantial utilization of all  their material and human resources. Like it or not, they have solved, for a  time at least, the problem of idle men and idle capital. Can we compete  with them by boldly seeking methods of putting idle men and idle capital  together and, at the same time, remain within our American way of life,  within the Bill of Rights, and within the bounds of what is, from our point  of view, civilization itself?  
1939-57	1939	We suffer from a great unemployment of capital. Many people have the idea  that as a nation we are overburdened with debt and are spending more than  we can afford. That is not so. Despite our Federal Government expenditures  the entire debt of our national economic system, public and private  together, is no larger today than it was in 1929, and the interest thereon  is far less than it was in 1929.  
1939-58	1939	The object is to put capital--private as well as public--to work.  
1939-59	1939	We want to get enough capital and labor at work to give us a total turnover  of business, a total national income, of at least eighty billion dollars a  year. At that figure we shall have a substantial reduction of unemployment;  and the Federal Revenues will be sufficient to balance the current level of  cash expenditures on the basis of the existing tax structure. That figure  can be attained, working within the framework of our traditional profit  system.  
1939-60	1939	The factors in attaining and maintaining that amount of national income are  many and complicated.  
1939-61	1939	They include more widespread understanding among business men of many  changes which world conditions and technological improvements have brought  to our economy over the last twenty years--changes in the interrelationship  of price and volume and employment, for example--changes of the kind in  which business men are now educating themselves through excellent  opportunities like the so-called "monopoly investigation."  
1939-62	1939	They include a perfecting of our farm program to protect farmers' income  and consumers' purchasing power from alternate risks of crop gluts and crop  shortages.  
1939-63	1939	They include wholehearted acceptance of new standards of honesty in our  financial markets.  
1939-64	1939	They include reconcilement of enormous, antagonistic interests--some of them  long in litigation--in the railroad and general transportation field.  
1939-65	1939	They include the working out of new techniques--private, state and  federal--to protect the public interest in and to develop wider markets for  electric power.  
1939-66	1939	They include a revamping of the tax relationships between federal, state  and local units of government, and consideration of relatively small tax  increases to adjust inequalities without interfering with the aggregate  income of the American people.  
1939-67	1939	They include the perfecting of labor organization and a universal  ungrudging attitude by employers toward the labor movement, until there is  a minimum of interruption of production and employment because of disputes,  and acceptance by labor of the truth that the welfare of labor itself  depends on increased balanced out-put of goods.  
1939-68	1939	To be immediately practical, while proceeding with a steady evolution in  the solving of these and like problems, we must wisely use  instrumentalities, like Federal investment, which are immediately available  to us.  
1939-69	1939	Here, as elsewhere, time is the deciding factor in our choice of remedies.  
1939-70	1939	Therefore, it does not seem logical to me, at the moment we seek to  increase production and consumption, for the Federal Government to consider  a drastic curtailment of its own investments.  
1939-71	1939	The whole subject of government investing and government income is one  which may be approached in two different ways.  
1939-72	1939	The first calls for the elimination of enough activities of government to  bring the expenses of government immediately into balance with income of  government. This school of thought maintains that because our national  income this year is only sixty billion dollars, ours is only a sixty  billion dollar country; that government must treat it as such; and that  without the help of government, it may some day, somehow, happen to become  an eighty billion dollar country.  
1939-73	1939	If the Congress decides to accept this point of view, it will logically  have to reduce the present functions or activities of government by  one-third. Not only will the Congress have to accept the responsibility for  such reduction; but the Congress will have to determine which activities  are to be reduced.  
1939-74	1939	Certain expenditures we cannot possibly reduce at this session, such as the  interest on the public debt. A few million dollars saved here or there in  the normal or in curtailed work of the old departments and commissions will  make no great saving in the Federal budget. Therefore, the Congress would  have to reduce drastically some of certain large items, very large items,  such as aids to agriculture and soil conservation, veterans' pensions,  flood control, highways, waterways and other public works, grants for  social and health security, Civilian Conservation Corps activities, relief  for the unemployed, or national defense itself.  
1939-75	1939	The Congress alone has the power to do all this, as it is the appropriating  branch of the government.  
1939-76	1939	The other approach to the question of government spending takes the  position that this Nation ought not to be and need not be only a sixty  billion dollar nation; that at this moment it has the men and the resources  sufficient to make it at least an eighty billion dollar nation. This school  of thought does not believe that it can become an eighty billion dollar  nation in the near future if government cuts its operations by one-third.  It is convinced that if we were to try it, we would invite disaster--and  that we would not long remain even a sixty billion dollar nation. There are  many complicated factors with which we have to deal, but we have learned  that it is unsafe to make abrupt reductions at any time in our net  expenditure program.  
1939-77	1939	By our common sense action of resuming government activities last spring,  we have reversed a recession and started the new rising tide of prosperity  and national income which we are now just beginning to enjoy.  
1939-78	1939	If government activities are fully maintained, there is a good prospect of  our becoming an eighty billion dollar country in a very short time. With  such a national income, present tax laws will yield enough each year to  balance each year's expenses.  
1939-79	1939	It is my conviction that down in their hearts the American public--industry,  agriculture, finance--want this Congress to do whatever needs to be done to  raise our national income to eighty billion dollars a year.  
1939-80	1939	Investing soundly must preclude spending wastefully. To guard against  opportunist appropriations, I have on several occasions addressed the  Congress on the importance of permanent long-range planning. I hope,  therefore, that following my recommendation of last year, a permanent  agency will be set up and authorized to report on the urgency and  desirability of the various types of government investment.  
1939-81	1939	Investment for prosperity can be made in a democracy.  
1939-82	1939	I hear some people say, "This is all so complicated. There are certain  advantages in a dictatorship. It gets rid of labor trouble, of  unemployment, of wasted motion and of having to do your own thinking."  
1939-83	1939	My answer is, "Yes, but it also gets rid of some other things which we  Americans intend very definitely to keep--and we still intend to do our own  thinking."  
1939-84	1939	It will cost us taxes and the voluntary risk of capital to attain some of  the practical advantages which other forms of government have acquired.  
1939-85	1939	Dictatorship, however, involves costs which the American people will never  pay: The cost of our spiritual values. The cost of the blessed right of  being able to say what we please. The cost of freedom of religion. The cost  of seeing our capital confiscated. The cost of being cast into a  concentration camp. The cost of being afraid to walk down the street with  the wrong neighbor. The cost of having our children brought up, not as free  and dignified human beings, but as pawns molded and enslaved by a machine.  
1939-86	1939	If the avoidance of these costs means taxes on my income; if avoiding these  costs means taxes on my estate at death, I would bear those taxes willingly  as the price of my breathing and my children breathing the free air of a  free country, as the price of a living and not a dead world.  
1939-87	1939	Events abroad have made it increasingly clear to the American people that  dangers within are less to be feared than dangers from without. If,  therefore, a solution of this problem of idle men and idle capital is the  price of preserving our liberty, no formless selfish fears can stand in the  way.  
1939-88	1939	Once I prophesied that this generation of Americans had a rendezvous with  destiny. That prophecy comes true. To us much is given; more is expected.  
1939-89	1939	This generation will "nobly save or meanly lose the last best hope of  earth. . . . The way is plain, peaceful, generous, just--a way which if  followed the world will forever applaud and God must forever bless."  
1940-1	1940	Mr. Vice President, Mr. Speaker, Members of the Senate and the House of  Representatives:  
1940-2	1940	I wish each and every one of you a very happy New Year.  
1940-3	1940	As the Congress reassembles, the impact of war abroad makes it natural to  approach "the state of the union" through a discussion of foreign affairs.  
1940-4	1940	But it is important that those who hear and read this message should in no  way confuse that approach with any thought that our Government is  abandoning, or even overlooking, the great significance of its domestic  policies.  
1940-5	1940	The social and economic forces which have been mismanaged abroad until they  have resulted in revolution, dictatorship and war are the same as those  which we here are struggling to adjust peacefully at home.  
1940-6	1940	You are well aware that dictatorships--and the philosophy of force that  justifies and accompanies dictatorships--have originated in almost every  case in the necessity for drastic action to improve internal conditions in  places where democratic action for one reason or another has failed to  respond to modern needs and modern demands.  
1940-7	1940	It was with far-sighted wisdom that the framers of our Constitution brought  together in one magnificent phrase three great concepts--"common defense,"  "general welfare" and "domestic tranquility."  
1940-8	1940	More than a century and a half later we, who are here today, still believe  with them that our best defense is the promotion of our general welfare and  domestic tranquillity.  
1940-9	1940	In previous messages to the Congress I have repeatedly warned that, whether  we like it or not, the daily lives of American citizens will, of necessity,  feel the shock of events on other continents. This is no longer mere  theory; because it has been definitely proved to us by the facts of  yesterday and today.  
1940-10	1940	To say that the domestic well-being of one hundred and thirty million  Americans is deeply affected by the well-being or the ill-being of the  populations of other nations is only to recognize in world affairs the  truth that we all accept in home affairs.  
1940-11	1940	If in any local unit--a city, county, State or region--low standards of  living are permitted to continue, the level of the civilization of the  entire nation will be pulled downward.  
1940-12	1940	The identical principle extends to the rest of the civilized world. But  there are those who wishfully insist, in innocence or ignorance or both,  that the United States of America as a self-contained unit can live happily  and prosperously, its future secure, inside a high wall of isolation while,  outside, the rest of Civilization and the commerce and culture of mankind  are shattered.  
1940-13	1940	I can understand the feelings of those who warn the nation that they will  never again consent to the sending of American youth to fight on the soil  of Europe. But, as I remember, nobody has asked them to consent--for nobody  expects such an undertaking.  
1940-14	1940	The overwhelming majority of our fellow citizens do not abandon in the  slightest their hope and their expectation that the United States will not  become involved in military participation in these wars.  
1940-15	1940	I can also understand the wishfulness of those who oversimplify the whole  situation by repeating that all we have to do is to mind our own business  and keep the nation out of war. But there is a vast difference between  keeping out of war and pretending that this war is none of our business.  
1940-16	1940	We do not have to go to war with other nations, but at least we can strive  with other nations to encourage the kind of peace that will lighten the  troubles of the world, and by so doing help our own nation as well.  
1940-17	1940	I ask that all of us everywhere think things through with the single aim of  how best to serve the future of our own nation. I do not mean merely its  future relationship with the outside world. I mean its domestic future as  well--the work, the security, the prosperity, the happiness, the life of all  the boys and girls in the United States, as they are inevitably affected by  such world relationships. For it becomes clearer and clearer that the  future world will be a shabby and dangerous place to live in--yes, even for  Americans to live in--if it is ruled by force in the hands of a few.  
1940-18	1940	Already the crash of swiftly moving events over the earth has made us all  think with a longer view. Fortunately, that thinking cannot be controlled  by partisanship. The time is long past when any political party or any  particular group can curry or capture public favor by labeling itself the  "peace party" or the "peace bloc." That label belongs to the whole United  States and to every right thinking man, woman and child within it.  
1940-19	1940	For out of all the military and diplomatic turmoil, out of all the  propaganda, and counter-propaganda of the present conflicts, there are two  facts which stand out, and which the whole world acknowledges.  
1940-20	1940	The first is that never before has the Government of the United States of  America done so much as in our recent past to establish and maintain the  policy of the Good Neighbor with its sister nations.  
1940-21	1940	The second is that in almost every nation in the world today there is a  true public belief that the United States has been, and will continue to  be, a potent and active factor in seeking the reestablishment of world  peace.  
1940-22	1940	In these recent years we have had a clean record of peace and good-will. It  is an open book that cannot be twisted or defamed. It is a record that must  be continued and enlarged.  
1940-23	1940	So I hope that Americans everywhere will work out for themselves the  several alternatives which lie before world civilization, which necessarily  includes our own.  
1940-24	1940	We must look ahead and see the possibilities for our children if the rest  of the world comes to be dominated by concentrated force alone--even though  today we are a very great and a very powerful nation.  
1940-25	1940	We must look ahead and see the effect on our own future if all the small  nations of the world have their independence snatched from them or become  mere appendages to relatively vast and powerful military systems.  
1940-26	1940	We must look ahead and see the kind of lives our children would have to  lead if a large part of the rest of the world were compelled to worship a  god imposed by a military ruler, or were forbidden to worship God at all;  if the rest of the world were forbidden to read and hear the facts--the  daily news of their own and other nations--if they were deprived of the  truth that makes men free.  
1940-27	1940	We must look ahead and see the effect on our future generations if world  trade is controlled by any nation or group of nations which sets up that  control through military force.  
1940-28	1940	It is, of course, true that the record of past centuries includes  destruction of many small nations, the enslavement of peoples, and the  building of empires on the foundation of force. But wholly apart from the  greater international morality which we seek today, we recognize the  practical fact that with modern weapons and modern conditions, modern man  can no longer lead a civilized life if we are to go back to the practice of  wars and conquests of the seventeenth and eighteenth centuries.  
1940-29	1940	Summing up this need of looking ahead, and in words of common sense and  good American citizenship. I hope that we shall have fewer American  ostriches in our midst. It is not good for the ultimate health of ostriches  to bury their heads in the sand.  
1940-30	1940	Only an ostrich would look upon these wars through the eyes of cynicism or  ridicule.  
1940-31	1940	Of course, the peoples of other nations have the right to choose their own  form of Government. But we in this nation still believe that such choice  should be predicated on certain freedoms which we think are essential  everywhere. We know that we ourselves shall never be wholly safe at home  unless other governments recognize such freedoms.  
1940-32	1940	Twenty-one American Republics, expressing the will of two hundred and fifty  million people to preserve peace and freedom in this Hemisphere, are  displaying a unanimity of ideals and practical relationships which gives  hope that what is being done here can be done on other continents. We in  all the Americas are coming to the realization that we can retain our  respective nationalities without, at the same time, threatening the  national existence of our neighbors.  
1940-33	1940	Such truly friendly relationships, for example, permit us to follow our own  domestic policies with reference to our agricultural products, while at the  same time we have the privilege of trying to work out mutual assistance  arrangements for a world distribution of world agricultural surpluses.  
1940-34	1940	And we have been able to apply the same simple principle to many  manufactured products--surpluses of which must be sold in the world export  markets if we intend to continue a high level of production and  employment.  
1940-35	1940	For many years after the World War blind economic selfishness in most  countries, including our own, resulted in a destructive mine-field of trade  restrictions which blocked the channels of commerce among nations. Indeed,  this policy was one of the contributing causes of existing wars. It dammed  up vast unsalable surpluses, helping to bring about unemployment and  suffering in the United States and everywhere else.  
1940-36	1940	To point the way to break up that log-jam our Trade Agreements Act was  passed--based upon a policy of equality of treatment among nations and of  mutually profitable arrangements of trade.  
1940-37	1940	It is not correct to infer that legislative powers have been transferred  from the Congress to the Executive Branch of the Government. Everyone  recognizes that general tariff legislation is a Congressional function; but  we know that, because of the stupendous task involved in the fashioning and  the passing of a general tariff law, it is advisable to provide at times of  emergency some flexibility to make the general law adjustable to quickly  changing conditions.  
1940-38	1940	We are in such a time today. Our present trade agreement method provides a  temporary flexibility and is, therefore, practical in the best sense. It  should be kept alive to serve our trade interests--agricultural and  industrial--in many valuable ways during the existing wars.  
1940-39	1940	But what is more important, the Trade Agreements Act should be extended as  an indispensable part of the foundation of any stable and enduring peace.  
1940-40	1940	The old conditions of world trade made for no enduring peace; and when the  time comes, the United States must use its influence to open up the trade  channels of the world, in all nations, in order that no one nation need  feel compelled in later days to seek by force of arms what it can well gain  by peaceful conference. For that purpose, too, we need the Trade Agreements  Act even more today than when it was passed.  
1940-41	1940	I emphasize the leadership which this nation can take when the time comes  for a renewal of world peace. Such an influence will be greatly weakened if  this Government becomes a dog in the manger of trade selfishness.  
1940-42	1940	The first President of the United States warned us against entangling  foreign alliances. The present President of the United States subscribes to  and follows that precept.  
1940-43	1940	I hope that most of you will agree that trade cooperation with the rest of  the world does not violate that precept in any way.  
1940-44	1940	Even as through these trade agreements we prepare to cooperate in a world  that wants peace, we must likewise be prepared to take care of ourselves if  the world cannot attain peace.  
1940-45	1940	For several years past we have been compelled to strengthen our own  national defense. That has created a very large portion of our Treasury  deficits. This year in the light of continuing world uncertainty, I am  asking the Congress for Army and Navy increases which are based not on  panic but on common sense. They are not as great as enthusiastic alarmists  seek. They are not as small as unrealistic persons claiming superior  private information would demand.  
1940-46	1940	As will appear in the annual budget tomorrow, the only important increase  in any part of the budget is the estimate for national defense. Practically  all other important items show a reduction. But you know, you can't eat  your cake and have it too. Therefore, in the hope that we can continue in  these days of increasing economic prosperity to reduce the Federal deficit,  I am asking the Congress to levy sufficient additional taxes to meet the  emergency spending for national defense.  
1940-47	1940	Behind the Army and Navy, of course, lies our ultimate line of defense--"the  general welfare" of our people. We cannot report, despite all the progress  that we have made in our domestic problems--despite the fact that production  is back to 1929 levels--that all our problems are solved. The fact of  unemployment of millions of men and women remains a symptom of a number of  difficulties in our economic system not yet adjusted.  
1940-48	1940	While the number of the unemployed has decreased very greatly, while their  immediate needs for food and clothing--as far as the Federal Government is  concerned--have been largely met, while their morale has been kept alive by  giving them useful public work, we have not yet found a way to employ the  surplus of our labor which the efficiency of our industrial processes has  created.  
1940-49	1940	We refuse the European solution of using the unemployed to build up  excessive armaments which eventually result in dictatorships and war. We  encourage an American way--through an increase of national income which is  the only way we can be sure will take up the slack. Much progress has been  made; much remains to be done.  
1940-50	1940	We recognize that we must find an answer in terms of work and opportunity.  
1940-51	1940	The unemployment problem today has become very definitely a problem of  youth as well as of age. As each year has gone by hundreds of thousands of  boys and girls have come of working age. They now form an army of unused  youth. They must be an especial concern of democratic Government.  
1940-52	1940	We must continue, above all things, to look for a solution of their special  problem. For they, looking ahead to life, are entitled to action on our  part and not merely to admonitions of optimism or lectures on economic  laws.  
1940-53	1940	Some in our midst have sought to instill a feeling of fear and defeatism in  the minds of the American people about this problem.  
1940-54	1940	To face the task of finding jobs faster than invention can take them  away--is not defeatism. To warble easy platitudes that if we would only go  back to ways that have failed, everything would be all right--is not  courage.  
1940-55	1940	In 1933 we met a problem of real fear and real defeatism. We faced the  facts--with action and not with words alone.  
1940-56	1940	The American people will reject the doctrine of fear, confident that in the  'thirties we have been building soundly a new order of things, different  from the order of the 'twenties. In this dawn of the decade of the  'forties, with our program of social improvement started, we will continue  to carry on the processes of recovery, so as to preserve our gains and  provide jobs at living wages.  
1940-57	1940	There are, of course, many other items of great public interest which could  be enumerated in this message--the continued conservation of our natural  resources, the improvement of health and of education, the extension of  social security to larger groups, the freeing of large areas from  restricted transportation discriminations, the extension of the merit  system and many others.  
1940-58	1940	Our continued progress in the social and economic field is important not  only for the significance of each part of it but for the total effect which  our program of domestic betterment has upon that most valuable asset of a  nation in dangerous times--its national unity.  
1940-59	1940	The permanent security of America in the present crisis does not lie in  armed force alone. What we face is a set of world-wide forces of  disintegration--vicious, ruthless, destructive of all the moral, religious  and political standards which mankind, after centuries of struggle, has  come to cherish most.  
1940-60	1940	In these moral values, in these forces which have made our nation great, we  must actively and practically reassert our faith.  
1940-61	1940	These words--"national unity"--must not be allowed to be come merely a  high-sounding phrase, a vague generality, a pious hope, to which everyone  can give lip-service. They must be made to have real meaning in terms of  the daily thoughts and acts of every man, woman and child in our land  during the coming year and during the years that lie ahead.  
1940-62	1940	For national unity is, in a very real and a very deep sense, the  fundamental safeguard of all democracy.  
1940-63	1940	Doctrines that set group against group, faith against faith, race against  race, class against class, fanning the fires of hatred in men too  despondent, too desperate to think for themselves, were used as  rabble-rousing slogans on which dictators could ride to power. And once in  power they could saddle their tyrannies on whole nations and on their  weaker neighbors.  
1940-64	1940	This is the danger to which we in America must begin to be more alert. For  the apologists for foreign aggressors, and equally those selfish and  partisan groups at home who wrap themselves in a false mantle of  Americanism to promote their own economic, financial or political  advantage, are now trying European tricks upon us, seeking to muddy the  stream of our national thinking, weakening us in the face of danger, by  trying to set our own people to fighting among themselves. Such tactics are  what have helped to plunge Europe into war. We must combat them, as we  would the plague, if American integrity and American security are to be  preserved. We cannot afford to face the future as a disunited people.  
1940-65	1940	We must as a united people keep ablaze on this continent the flames of  human liberty, of reason, of democracy and of fair play as living things to  be preserved for the better world that is to come.  
1940-66	1940	Overstatement, bitterness, vituperation, and the beating of drums have  contributed mightily to ill-feeling and wars between nations. If these  unnecessary and unpleasant actions are harmful in the international field,  if they have hurt in other parts of the world, they are also harmful in the  domestic scene. Peace among ourselves would seem to have some of the  advantage of peace between us and other nations. In the long run history  amply demonstrates that angry controversy surely wins less than calm  discussion.  
1940-67	1940	In the spirit, therefore, of a greater unselfishness, recognizing that the  world--including the United States of America--passes through perilous  times, I am very hopeful that the closing session of the Seventy-sixth  Congress will consider the needs of the nation and of humanity with  calmness, with tolerance and with cooperative wisdom.  
1940-68	1940	May the year 1940 be pointed to by our children as another period when  democracy justified its existence as the best instrument of government yet  devised by mankind.  
1941-1	1941	Mr. President, Mr. Speaker, Members of the Seventy-seventh Congress:  
1941-2	1941	I address you, the Members of the Seventy-seventh Congress, at a moment  unprecedented in the history of the Union. I use the word "unprecedented,"  because at no previous time has American security been as seriously  threatened from without as it is today.  
1941-3	1941	Since the permanent formation of our Government under the Constitution, in  1789, most of the periods of crisis in our history have related to our  domestic affairs. Fortunately, only one of these--the four-year War Between  the States--ever threatened our national unity. Today, thank God, one  hundred and thirty million Americans, in forty-eight States, have forgotten  points of the compass in our national unity.  
1941-4	1941	It is true that prior to 1914 the United States often had been disturbed by  events in other Continents. We had even engaged in two wars with European  nations and in a number of undeclared wars in the West Indies, in the  Mediterranean and in the Pacific for the maintenance of American rights and  for the principles of peaceful commerce. But in no case had a serious  threat been raised against our national safety or our continued  independence.  
1941-5	1941	What I seek to convey is the historic truth that the United States as a  nation has at all times maintained clear, definite opposition, to any  attempt to lock us in behind an ancient Chinese wall while the procession  of civilization went past. Today, thinking of our children and of their  children, we oppose enforced isolation for ourselves or for any other part  of the Americas.  
1941-6	1941	That determination of ours, extending over all these years, was proved, for  example, during the quarter century of wars following the French  Revolution.  
1941-7	1941	While the Napoleonic struggles did threaten interests of the United States  because of the French foothold in the West Indies and in Louisiana, and  while we engaged in the War of 1812 to vindicate our right to peaceful  trade, it is nevertheless clear that neither France nor Great Britain, nor  any other nation, was aiming at domination of the whole world.  
1941-8	1941	In like fashion from 1815 to 1914--ninety-nine years--no single war in  Europe or in Asia constituted a real threat against our future or against  the future of any other American nation.  
1941-9	1941	Except in the Maximilian interlude in Mexico, no foreign power sought to  establish itself in this Hemisphere; and the strength of the British fleet  in the Atlantic has been a friendly strength. It is still a friendly  strength.  
1941-10	1941	Even when the World War broke out in 1914, it seemed to contain only small  threat of danger to our own American future. But, as time went on, the  American people began to visualize what the downfall of democratic nations  might mean to our own democracy.  
1941-11	1941	We need not overemphasize imperfections in the Peace of Versailles. We need  not harp on failure of the democracies to deal with problems of world  reconstruction. We should remember that the Peace of 1919 was far less  unjust than the kind of "pacification" which began even before Munich, and  which is being carried on under the new order of tyranny that seeks to  spread over every continent today. The American people have unalterably set  their faces against that tyranny.  
1941-12	1941	Every realist knows that the democratic way of life is at this moment  being directly assailed in every part of the world--assailed either by  arms, or by secret spreading of poisonous propaganda by those who seek to  destroy unity and promote discord in nations that are still at peace.  
1941-13	1941	During sixteen long months this assault has blotted out the whole pattern  of democratic life in an appalling number of independent nations, great and  small. The assailants are still on the march, threatening other nations,  great and small.  
1941-14	1941	Therefore, as your President, performing my constitutional duty to "give to  the Congress information of the state of the Union," I find it, unhappily,  necessary to report that the future and the safety of our country and of  our democracy are overwhelmingly involved in events far beyond our  borders.  
1941-15	1941	Armed defense of democratic existence is now being gallantly waged in four  continents. If that defense fails, all the population and all the resources  of Europe, Asia, Africa and Australasia will be dominated by the  conquerors. Let us remember that the total of those populations and their  resources in those four continents greatly exceeds the sum total of the  population and the resources of the whole of the Western Hemisphere--many  times over.  
1941-16	1941	In times like these it is immature--and incidentally, untrue--for anybody to  brag that an unprepared America, single-handed, and with one hand tied  behind its back, can hold off the whole world.  
1941-17	1941	No realistic American can expect from a dictator's peace international  generosity, or return of true independence, or world disarmament, or  freedom of expression, or freedom of religion--or even good business.  
1941-18	1941	Such a peace would bring no security for us or for our neighbors. "Those,  who would give up essential liberty to purchase a little temporary safety,  deserve neither liberty nor safety."  
1941-19	1941	As a nation, we may take pride in the fact that we are softhearted; but we  cannot afford to be soft-headed.  
1941-20	1941	We must always be wary of those who with sounding brass and a tinkling  cymbal preach the "ism" of appeasement.  
1941-21	1941	We must especially beware of that small group of selfish men who would clip  the wings of the American eagle in order to feather their own nests.  
1941-22	1941	I have recently pointed out how quickly the tempo of modern warfare could  bring into our very midst the physical attack which we must eventually  expect if the dictator nations win this war.  
1941-23	1941	There is much loose talk of our immunity from immediate and direct invasion  from across the seas. Obviously, as long as the British Navy retains its  power, no such danger exists. Even if there were no British Navy, it is not  probable that any enemy would be stupid enough to attack us by landing  troops in the United States from across thousands of miles of ocean, until  it had acquired strategic bases from which to operate.  
1941-24	1941	But we learn much from the lessons of the past years in Europe--particularly  the lesson of Norway, whose essential seaports were captured by treachery  and surprise built up over a series of years.  
1941-25	1941	The first phase of the invasion of this Hemisphere would not be the landing  of regular troops. The necessary strategic points would be occupied by  secret agents and their dupes--and great numbers of them are already here,  and in Latin America.  
1941-26	1941	As long as the aggressor nations maintain the offensive, they--not we--will  choose the time and the place and the method of their attack.  
1941-27	1941	That is why the future of all the American Republics is today in serious  danger.  
1941-28	1941	That is why this Annual Message to the Congress is unique in our history.  
1941-29	1941	That is why every member of the Executive Branch of the Government and  every member of the Congress faces great responsibility and great  accountability.  
1941-30	1941	The need of the moment is that our actions and our policy should be devoted  primarily--almost exclusively--to meeting this foreign peril. For all our  domestic problems are now a part of the great emergency.  
1941-31	1941	Just as our national policy in internal affairs has been based upon a  decent respect for the rights and the dignity of all our fellow men within  our gates, so our national policy in foreign affairs has been based on a  decent respect for the rights and dignity of all nations, large and small.  And the justice of morality must and will win in the end.  
1941-32	1941	Our national policy is this:  
1941-33	1941	First, by an impressive expression of the public will and without regard to  partisanship, we are committed to all-inclusive national defense.  
1941-34	1941	Second, by an impressive expression of the public will and without regard  to partisanship, we are committed to full support of all those resolute  peoples, everywhere, who are resisting aggression and are thereby keeping  war away from our Hemisphere. By this support, we express our determination  that the democratic cause shall prevail; and we strengthen the defense and  the security of our own nation.  
1941-35	1941	Third, by an impressive expression of the public will and without regard to  partisanship, we are committed to the proposition that principles of  morality and considerations for our own security will never permit us to  acquiesce in a peace dictated by aggressors and sponsored by appeasers. We  know that enduring peace cannot be bought at the cost of other people's  freedom.  
1941-36	1941	In the recent national election there was no substantial difference between  the two great parties in respect to that national policy. No issue was  fought out on this line before the American electorate. Today it is  abundantly evident that American citizens everywhere are demanding and  supporting speedy and complete action in recognition of obvious danger.  
1941-37	1941	Therefore, the immediate need is a swift and driving increase in our  armament production.  
1941-38	1941	Leaders of industry and labor have responded to our summons. Goals of speed  have been set. In some cases these goals are being reached ahead of time;  in some cases we are on schedule; in other cases there are slight but not  serious delays; and in some cases--and I am sorry to say very important  cases--we are all concerned by the slowness of the accomplishment of our  plans.  
1941-39	1941	The Army and Navy, however, have made substantial progress during the past  year. Actual experience is improving and speeding up our methods of  production with every passing day. And today's best is not good enough for  tomorrow.  
1941-40	1941	I am not satisfied with the progress thus far made. The men in charge of  the program represent the best in training, in ability, and in patriotism.  They are not satisfied with the progress thus far made. None of us will be  satisfied until the job is done.  
1941-41	1941	No matter whether the original goal was set too high or too low, our  objective is quicker and better results. To give you two illustrations:  
1941-42	1941	We are behind schedule in turning out finished airplanes; we are working  day and night to solve the innumerable problems and to catch up.  
1941-43	1941	We are ahead of schedule in building warships but we are working to get  even further ahead of that schedule.  
1941-44	1941	To change a whole nation from a basis of peacetime production of implements  of peace to a basis of wartime production of implements of war is no small  task. And the greatest difficulty comes at the beginning of the program,  when new tools, new plant facilities, new assembly lines, and new ship ways  must first be constructed before the actual materiel begins to flow  steadily and speedily from them.  
1941-45	1941	The Congress, of course, must rightly keep itself informed at all times of  the progress of the program. However, there is certain information, as the  Congress itself will readily recognize, which, in the interests of our own  security and those of the nations that we are supporting, must of needs be  kept in confidence.  
1941-46	1941	New circumstances are constantly begetting new needs for our safety. I  shall ask this Congress for greatly increased new appropriations and  authorizations to carry on what we have begun.  
1941-47	1941	I also ask this Congress for authority and for funds sufficient to  manufacture additional munitions and war supplies of many kinds, to be  turned over to those nations which are now in actual war with aggressor  nations.  
1941-48	1941	Our most useful and immediate role is to act as an arsenal for them as well  as for ourselves. They do not need man power, but they do need billions of  dollars worth of the weapons of defense.  
1941-49	1941	The time is near when they will not be able to pay for them all in ready  cash. We cannot, and we will not, tell them that they must surrender,  merely because of present inability to pay for the weapons which we know  they must have.  
1941-50	1941	I do not recommend that we make them a loan of dollars with which to pay  for these weapons--a loan to be repaid in dollars.  
1941-51	1941	I recommend that we make it possible for those nations to continue to  obtain war materials in the United States, fitting their orders into our  own program. Nearly all their materiel would, if the time ever came, be  useful for our own defense.  
1941-52	1941	Taking counsel of expert military and naval authorities, considering what  is best for our own security, we are free to decide how much should be kept  here and how much should be sent abroad to our friends who by their  determined and heroic resistance are giving us time in which to make ready  our own defense.  
1941-53	1941	For what we send abroad, we shall be repaid within a reasonable time  following the close of hostilities, in similar materials, or, at our  option, in other goods of many kinds, which they can produce and which we  need.  
1941-54	1941	Let us say to the democracies: "We Americans are vitally concerned in your  defense of freedom. We are putting forth our energies, our resources and  our organizing powers to give you the strength to regain and maintain a  free world. We shall send you, in ever-increasing numbers, ships, planes,  tanks, guns. This is our purpose and our pledge."  
1941-55	1941	In fulfillment of this purpose we will not be intimidated by the threats of  dictators that they will regard as a breach of international law or as an  act of war our aid to the democracies which dare to resist their  aggression. Such aid is not an act of war, even if a dictator should  unilaterally proclaim it so to be.  
1941-56	1941	When the dictators, if the dictators, are ready to make war upon us, they  will not wait for an act of war on our part. They did not wait for Norway  or Belgium or the Netherlands to commit an act of war.  
1941-57	1941	Their only interest is in a new one-way international law, which lacks  mutuality in its observance, and, therefore, becomes an instrument of  oppression.  
1941-58	1941	The happiness of future generations of Americans may well depend upon how  effective and how immediate we can make our aid felt. No one can tell the  exact character of the emergency situations that we may be called upon to  meet. The Nation's hands must not be tied when the Nation's life is in  danger.  
1941-59	1941	We must all prepare to make the sacrifices that the emergency--almost as  serious as war itself--demands. Whatever stands in the way of speed and  efficiency in defense preparations must give way to the national need.  
1941-60	1941	A free nation has the right to expect full cooperation from all groups. A  free nation has the right to look to the leaders of business, of labor, and  of agriculture to take the lead in stimulating effort, not among other  groups but within their own groups.  
1941-61	1941	The best way of dealing with the few slackers or trouble makers in our  midst is, first, to shame them by patriotic example, and, if that fails, to  use the sovereignty of Government to save Government.  
1941-62	1941	As men do not live by bread alone, they do not fight by armaments alone.  Those who man our defenses, and those behind them who build our defenses,  must have the stamina and the courage which come from unshakable belief in  the manner of life which they are defending. The mighty action that we are  calling for cannot be based on a disregard of all things worth fighting  for.  
1941-63	1941	The Nation takes great satisfaction and much strength from the things which  have been done to make its people conscious of their individual stake in  the preservation of democratic life in America. Those things have toughened  the fibre of our people, have renewed their faith and strengthened their  devotion to the institutions we make ready to protect.  
1941-64	1941	Certainly this is no time for any of us to stop thinking about the social  and economic problems which are the root cause of the social revolution  which is today a supreme factor in the world.  
1941-65	1941	For there is nothing mysterious about the foundations of a healthy and  strong democracy. The basic things expected by our people of their  political and economic systems are simple. They are:  
1941-66	1941	Equality of opportunity for youth and for others.  
1941-67	1941	Jobs for those who can work.  
1941-68	1941	Security for those who need it.  
1941-69	1941	The ending of special privilege for the few.  
1941-70	1941	The preservation of civil liberties for all.  
1941-71	1941	The enjoyment of the fruits of scientific progress in a wider and  constantly rising standard of living.  
1941-72	1941	These are the simple, basic things that must never be lost sight of in the  turmoil and unbelievable complexity of our modern world. The inner and  abiding strength of our economic and political systems is dependent upon  the degree to which they fulfill these expectations.  
1941-73	1941	Many subjects connected with our social economy call for immediate  improvement.  
1941-74	1941	As examples:  
1941-75	1941	We should bring more citizens under the coverage of old-age pensions and  unemployment insurance.  
1941-76	1941	We should widen the opportunities for adequate medical care.  
1941-77	1941	We should plan a better system by which persons deserving or needing  gainful employment may obtain it.  
1941-78	1941	I have called for personal sacrifice. I am assured of the willingness of  almost all Americans to respond to that call.  
1941-79	1941	A part of the sacrifice means the payment of more money in taxes. In my  Budget Message I shall recommend that a greater portion of this great  defense program be paid for from taxation than we are paying today. No  person should try, or be allowed, to get rich out of this program; and the  principle of tax payments in accordance with ability to pay should be  constantly before our eyes to guide our legislation.  
1941-80	1941	If the Congress maintains these principles, the voters, putting patriotism  ahead of pocketbooks, will give you their applause.  
1941-81	1941	In the future days, which we seek to make secure, we look forward to a  world founded upon four essential human freedoms.  
1941-82	1941	The first is freedom of speech and expression--everywhere in the world.  
1941-83	1941	The second is freedom of every person to worship God in his own  way--everywhere in the world.  
1941-84	1941	The third is freedom from want--which, translated into world terms, means  economic understandings which will secure to every nation a healthy  peacetime life for its inhabitants--everywhere in the world.  
1941-85	1941	The fourth is freedom from fear--which, translated into world terms, means a  world-wide reduction of armaments to such a point and in such a thorough  fashion that no nation will be in a position to commit an act of physical  aggression against any neighbor--anywhere in the world.  
1941-86	1941	That is no vision of a distant millennium. It is a definite basis for a  kind of world attainable in our own time and generation. That kind of world  is the very antithesis of the so-called new order of tyranny which the  dictators seek to create with the crash of a bomb.  
1941-87	1941	To that new order we oppose the greater conception--the moral order. A good  society is able to face schemes of world domination and foreign revolutions  alike without fear.  
1941-88	1941	Since the beginning of our American history, we have been engaged in  change--in a perpetual peaceful revolution--a revolution which goes on  steadily, quietly adjusting itself to changing conditions--without the  concentration camp or the quick-lime in the ditch. The world order which we  seek is the cooperation of free countries, working together in a friendly,  civilized society.  
1941-89	1941	This nation has placed its destiny in the hands and heads and hearts of its  millions of free men and women; and its faith in freedom under the guidance  of God. Freedom means the supremacy of human rights everywhere. Our support  goes to those who struggle to gain those rights or keep them. Our strength  is our unity of purpose. To that high concept there can be no end save  victory.  
1942-1	1942	In fulfilling my duty to report upon the State of the Union, I am proud to  say to you that the spirit of the American people was never higher than it  is today--the Union was never more closely knit together--this country was  never more deeply determined to face the solemn tasks before it.  
1942-2	1942	The response of the American people has been instantaneous, and it will be  sustained until our security is assured.  
1942-3	1942	Exactly one year ago today I said to this Congress: "When the dictators. . .  are ready to make war upon us, they will not wait for an act of war on  our part. . . . They--not we--will choose the time and the place and the  method of their attack."  
1942-4	1942	We now know their choice of the time: a peaceful Sunday morning--December  7, 1941.  
1942-5	1942	We know their choice of the place: an American outpost in the Pacific.  
1942-6	1942	We know their choice of the method: the method of Hitler himself.  
1942-7	1942	Japan's scheme of conquest goes back half a century. It was not merely a  policy of seeking living room: it was a plan which included the subjugation  of all the peoples in the Far East and in the islands of the Pacific, and  the domination of that ocean by Japanese military and naval control of the  western coasts of North, Central, and South America.  
1942-8	1942	The development of this ambitious conspiracy was marked by the war against  China in 1894; the subsequent occupation of Korea; the war against Russia  in 1904; the illegal fortification of the mandated Pacific islands  following 1920; the seizure of Manchuria in 1931; and the invasion of China  in 1937.  
1942-9	1942	A similar policy of criminal conquest was adopted by Italy. The Fascists  first revealed their imperial designs in Libya and Tripoli. In 1935 they  seized Abyssinia. Their goal was the domination of all North Africa, Egypt,  parts of France, and the entire Mediterranean world.  
1942-10	1942	But the dreams of empire of the Japanese and Fascist leaders were modest in  comparison with the gargantuan aspirations of Hitler and his Nazis. Even  before they came to power in 1933, their plans for that conquest had been  drawn. Those plans provided for ultimate domination, not of any one section  of the world, but of the whole earth and all the oceans on it.  
1942-11	1942	When Hitler organized his Berlin-Rome-Tokyo alliance, all these plans of  conquest became a single plan. Under this, in addition to her own schemes  of conquest, Japan's role was obviously to cut off our supply of weapons of  war to Britain, and Russia and China--weapons which increasingly were  speeding the day of Hitler's doom. The act of Japan at Pearl Harbor was  intended to stun us--to terrify us to such an extent that we would divert  our industrial and military strength to the Pacific area, or even to our  own continental defense.  
1942-12	1942	The plan has failed in its purpose. We have not been stunned. We have not  been terrified or confused. This very reassembling of the Seventy-seventh  Congress today is proof of that; for the mood of quiet, grim resolution  which here prevails bodes ill for those who conspired and collaborated to  murder world peace.  
1942-13	1942	That mood is stronger than any mere desire for revenge. It expresses the  will of the American people to make very certain that the world will never  so suffer again.  
1942-14	1942	Admittedly, we have been faced with hard choices. It was bitter, for  example, not to be able to relieve the heroic and historic defenders of  Wake Island. It was bitter for us not to be able to land a million men in a  thousand ships in the Philippine Islands.  
1942-15	1942	But this adds only to our determination to see to it that the Stars and  Stripes will fly again over Wake and Guam. Yes, see to it that the brave  people of the Philippines will be rid of Japanese imperialism; and will  live in freedom, security, and independence.  
1942-16	1942	Powerful and offensive actions must and will be taken in proper time. The  consolidation of the United Nations' total war effort against our common  enemies is being achieved.  
1942-17	1942	That was and is the purpose of conferences which have been held during the  past two weeks in Washington, and Moscow and Chungking. That is the primary  objective of the declaration of solidarity signed in Washington on January  1, 1942, by 26 Nations united against the Axis powers.  
1942-18	1942	Difficult choices may have to be made in the months to come. We do not  shrink from such decisions. We and those united with us will make those  decisions with courage and determination.  
1942-19	1942	Plans have been laid here and in the other capitals for coordinated and  cooperative action by all the United Nations--military action and economic  action. Already we have established, as you know, unified command of land,  sea, and air forces in the southwestern Pacific theater of war. There will  be a continuation of conferences and consultations among military staffs,  so that the plans and operations of each will fit into the general strategy  designed to crush the enemy. We shall not fight isolated wars--each Nation  going its own way. These 26 Nations are united--not in spirit and  determination alone, but in the broad conduct of the war in all its  phases.  
1942-20	1942	For the first time since the Japanese and the Fascists and the Nazis  started along their blood-stained course of conquest they now face the fact  that superior forces are assembling against them. Gone forever are the days  when the aggressors could attack and destroy their victims one by one  without unity of resistance. We of the United Nations will so dispose our  forces that we can strike at the common enemy wherever the greatest damage  can be done him.  
1942-21	1942	The militarists of Berlin and Tokyo started this war. But the massed,  angered forces of common humanity will finish it.  
1942-22	1942	Destruction of the material and spiritual centers of civilization--this has  been and still is the purpose of Hitler and his Italian and Japanese  chessmen. They would wreck the power of the British Commonwealth and Russia  and China and the Netherlands--and then combine all their forces to achieve  their ultimate goal, the conquest of the United States.  
1942-23	1942	They know that victory for us means victory for freedom.  
1942-24	1942	They know that victory for us means victory for the institution of  democracy--the ideal of the family, the simple principles of common decency  and humanity.  
1942-25	1942	They know that victory for us means victory for religion. And they could  not tolerate that. The world is too small to provide adequate "living room"  for both Hitler and God. In proof of that, the Nazis have now announced  their plan for enforcing their new German, pagan religion all over the  world--a plan by which the Holy Bible and the Cross of Mercy would be  displaced by Mein Kampf and the swastika and the naked sword.  
1942-26	1942	Our own objectives are clear; the objective of smashing the militarism  imposed by war lords upon their enslaved peoples the objective of  liberating the subjugated Nations--the objective of establishing and  securing freedom of speech, freedom of religion, freedom from want, and  freedom from fear everywhere in the world.  
1942-27	1942	We shall not stop short of these objectives--nor shall we be satisfied  merely to gain them and then call it a day. I know that I speak for the  American people--and I have good reason to believe that I speak also for  all the other peoples who fight with us--when I say that this time we are  determined not only to win the war, but also to maintain the security of  the peace that will follow.  
1942-28	1942	But we know that modern methods of warfare make it a task, not only of  shooting and fighting, but an even more urgent one of working and  producing.  
1942-29	1942	Victory requires the actual weapons of war and the means of transporting  them to a dozen points of combat.  
1942-30	1942	It will not be sufficient for us and the other United Nations to produce a  slightly superior supply of munitions to that of Germany, Japan, Italy, and  the stolen industries in the countries which they have overrun.  
1942-31	1942	The superiority of the United Nations in munitions and ships must be  overwhelming--so overwhelming that the Axis Nations can never hope to catch  up with it. And so, in order to attain this overwhelming superiority the  United States must build planes and tanks and guns and ships to the utmost  limit of our national capacity. We have the ability and capacity to produce  arms not only for our own forces, but also for the armies, navies, and air  forces fighting on our side.  
1942-32	1942	And our overwhelming superiority of armament must be adequate to put  weapons of war at the proper time into the hands of those men in the  conquered Nations who stand ready to seize the first opportunity to revolt  against their German and Japanese oppressors, and against the traitors in  their own ranks, known by the already infamous name of "Quislings." And I  think that it is a fair prophecy to say that, as we get guns to the  patriots in those lands, they too will fire shots heard 'round the world.  
1942-33	1942	This production of ours in the United States must be raised far above  present levels, even though it will mean the dislocation of the lives and  occupations of millions of our own people. We must raise our sights all  along the production line. Let no man say it cannot be done. It must be  done--and we have undertaken to do it.  
1942-34	1942	I have just sent a letter of directive to the appropriate departments and  agencies of our Government, ordering that immediate steps be taken:  
1942-35	1942	First, to increase our production rate of airplanes so rapidly that in this  year, 1942, we shall produce 60,000 planes, 10,000 more than the goal that  we set a year and a half ago. This includes 45,000 combat planes--bombers,  dive bombers, pursuit planes. The rate of increase will be maintained and  continued so that next year, 1943, we shall produce 125,000 airplanes,  including 100,000 combat planes.  
1942-36	1942	Second, to increase our production rate of tanks so rapidly that in this  year, 1942, we shall produce 45,000 tanks; and to continue that increase so  that next year, 1943, we shall produce 75,000 tanks.  
1942-37	1942	Third, to increase our production rate of anti-aircraft guns so rapidly  that in this year, 1942, we shall produce 20,000 of them; and to continue  that increase so that next year, 1943, we shall produce 35,000  anti-aircraft guns.  
1942-38	1942	And fourth, to increase our production rate of merchant ships so rapidly  that in this year, 1942, we shall build 6,000,000 deadweight tons as  compared with a 1941 completed production of 1,100,000. And finally, we  shall continue that increase so that next year, 1943, we shall build  10,000,000 tons of shipping.  
1942-39	1942	These figures and similar figures for a multitude of other implements of  war will give the Japanese and the Nazis a little idea of just what they  accomplished in the attack at Pearl Harbor.  
1942-40	1942	And I rather hope that all these figures which I have given will become  common knowledge in Germany and Japan.  
1942-41	1942	Our task is hard--our task is unprecedented--and the time is short. We must  strain every existing armament-producing facility to the utmost. We must  convert every available plant and tool to war production. That goes all the  way from the greatest plants to the smallest--from the huge automobile  industry to the village machine shop.  
1942-42	1942	Production for war is based on men and women--the human hands and brains  which collectively we call Labor. Our workers stand ready to work long  hours; to turn out more in a day's work; to keep the wheels turning and the  fires burning twenty-four hours a day, and seven days a week. They realize  well that on the speed and efficiency of their work depend the lives of  their sons and their brothers on the fighting fronts.  
1942-43	1942	Production for war is based on metals and raw materials--steel, copper,  rubber, aluminum, zinc, tin. Greater and greater quantities of them will  have to be diverted to war purposes. Civilian use of them will have to be  cut further and still further--and, in many cases, completely eliminated.  
1942-44	1942	War costs money. So far, we have hardly even begun to pay for it. We have  devoted only 15 percent of our national income to national defense. As will  appear in my Budget Message tomorrow, our war program for the coming fiscal  year will cost 56 billion dollars or, in other words, more than half of the  estimated annual national income. That means taxes and bonds and bonds and  taxes. It means cutting luxuries and other non-essentials. In a word, it  means an "all-out" war by individual effort and family effort in a united  country.  
1942-45	1942	Only this all-out scale of production will hasten the ultimate all-out  victory. Speed will count. Lost ground can always be regained--lost time  never. Speed will save lives; speed will save this Nation which is in  peril; speed will save our freedom and our civilization--and slowness has  never been an American characteristic.  
1942-46	1942	As the United States goes into its full stride, we must always be on guard  against misconceptions which will arise, some of them naturally, or which  will be planted among us by our enemies.  
1942-47	1942	We must guard against complacency. We must not underrate the enemy. He is  powerful and cunning--and cruel and ruthless. He will stop at nothing that  gives him a chance to kill and to destroy. He has trained his people to  believe that their highest perfection is achieved by waging war. For many  years he has prepared for this very conflict--planning, and plotting, and  training, arming, and fighting. We have already tasted defeat. We may  suffer further setbacks. We must face the fact of a hard war, a long war, a  bloody war, a costly war.  
1942-48	1942	We must, on the other hand, guard against defeatism. That has been one of  the chief weapons of Hitler's propaganda machine--used time and again with  deadly results. It will not be used successfully on the American people.  
1942-49	1942	We must guard against divisions among ourselves and among all the other  United Nations. We must be particularly vigilant against racial  discrimination in any of its ugly forms. Hitler will try again to breed  mistrust and suspicion between one individual and another, one group and  another, one race and another, one Government and another. He will try to  use the same technique of falsehood and rumor-mongering with which he  divided France from Britain. He is trying to do this with us even now. But  he will find a unity of will and purpose against him, which will persevere  until the destruction of all his black designs upon the freedom and safety  of the people of the world.  
1942-50	1942	We cannot wage this war in a defensive spirit. As our power and our  resources are fully mobilized, we shall carry the attack against the  enemy--we shall hit him and hit him again wherever and whenever we can reach  him.  
1942-51	1942	We must keep him far from our shores, for we intend to bring this battle to  him on his own home grounds.  
1942-52	1942	American armed forces must be used at any place in all the world where it  seems advisable to engage the forces of the enemy. In some cases these  operations will be defensive, in order to protect key positions. In other  cases, these operations will be offensive, in order to strike at the common  enemy, with a view to his complete encirclement and eventual total defeat.  
1942-53	1942	American armed forces will operate at many points in the Far East.  
1942-54	1942	American armed forces will be on all the oceans--helping to guard the  essential communications which are vital to the United Nations.  
1942-55	1942	American land and air and sea forces will take stations in the British  Isles--which constitute an essential fortress in this great world  struggle.  
1942-56	1942	American armed forces will help to protect this hemisphere--and also help to  protect bases outside this hemisphere, which could be used for an attack on  the Americas.  
1942-57	1942	If any of our enemies, from Europe or from Asia, attempt long-range raids  by "suicide" squadrons of bombing planes, they will do so only in the hope  of terrorizing our people and disrupting our morale. Our people are not  afraid of that. We know that we may have to pay a heavy price for freedom.  We will pay this price with a will. Whatever the price, it is a thousand  times worth it. No matter what our enemies, in their desperation, may  attempt to do to us--we will say, as the people of London have said, "We  can take it." And what's more we can give it back and we will give it  back--with compound interest.  
1942-58	1942	When our enemies challenged our country to stand up and fight, they  challenged each and every one of us. And each and every one of us has  accepted the challenge--for himself and for his Nation.  
1942-59	1942	There were only some 400 United States Marines who in the heroic and  historic defense of Wake Island inflicted such great losses on the enemy.  Some of those men were killed in action; and others are now prisoners of  war. When the survivors of that great fight are liberated and restored to  their homes, they will learn that a hundred and thirty million of their  fellow citizens have been inspired to render their own full share of  service and sacrifice.  
1942-60	1942	We can well say that our men on the fighting fronts have already proved  that Americans today are just as rugged and just as tough as any of the  heroes whose exploits we celebrate on the Fourth of July.  
1942-61	1942	Many people ask, "When will this war end?" There is only one answer to  that. It will end just as soon as we make it end, by our combined efforts,  our combined strength, our combined determination to fight through and work  through until the end--the end of militarism in Germany and Italy and  Japan. Most certainly we shall not settle for less.  
1942-62	1942	That is the spirit in which discussions have been conducted during the  visit of the British Prime Minister to Washington. Mr. Churchill and I  understand each other, our motives and our purposes. Together, during the  past two weeks, we have faced squarely the major military and economic  problems of this greatest world war.  
1942-63	1942	All in our Nation have been cheered by Mr. Churchill's visit. We have been  deeply stirred by his great message to us. He is welcome in our midst, and  we unite in wishing him a safe return to his home.  
1942-64	1942	For we are fighting on the same side with the British people, who fought  alone for long, terrible months, and withstood the enemy with fortitude and  tenacity and skill.  
1942-65	1942	We are fighting on the same side with the Russian people who have seen the  Nazi hordes swarm up to the very gates of Moscow, and who with almost  superhuman will and courage have forced the invaders back into retreat.  
1942-66	1942	We are fighting on the same side as the brave people of China--those  millions who for four and a half long years have withstood bombs and  starvation and have whipped the invaders time and again in spite of the  superior Japanese equipment and arms. Yes, we are fighting on the same side  as the indomitable Dutch. We are fighting on the same side as all the other  Governments in exile, whom Hitler and all his armies and all his Gestapo  have not been able to conquer.  
1942-67	1942	But we of the United Nations are not making all this sacrifice of human  effort and human lives to return to the kind of world we had after the last  world war.  
1942-68	1942	We are fighting today for security, for progress, and for peace, not only  for ourselves but for all men, not only for one generation but for all  generations. We are fighting to cleanse the world of ancient evils, ancient  ills.  
1942-69	1942	Our enemies are guided by brutal cynicism, by unholy contempt for the human  race. We are inspired by a faith that goes back through all the years to  the first chapter of the Book of Genesis: "God created man in His own  image."  
1942-70	1942	We on our side are striving to be true to that divine heritage. We are  fighting, as our fathers have fought, to uphold the doctrine that all men  are equal in the sight of God. Those on the other side are striving to  destroy this deep belief and to create a world in their own image--a world  of tyranny and cruelty and serfdom.  
1942-71	1942	That is the conflict that day and night now pervades our lives.  
1942-72	1942	No compromise can end that conflict. There never has been--there never can  be--successful compromise between good and evil. Only total victory can  reward the champions of tolerance, and decency, and freedom, and faith.  
1943-1	1943	Mr. Vice President, Mr. Speaker, Members of the Seventy-eighth Congress:  
1943-2	1943	This Seventy-eighth Congress assembles in one of the great moments in the  history of the Nation. The past year was perhaps the most crucial for  modern civilization; the coming year will be filled with violent conflicts--  yet with high promise of better things.  
1943-3	1943	We must appraise the events of 1942 according to their relative importance;  we must exercise a sense of proportion.  
1943-4	1943	First in importance in the American scene has been the inspiring proof of  the great qualities of our fighting men. They have demonstrated these  qualities in adversity as well as in victory. As long as our flag flies  over this Capitol, Americans will honor the soldiers, sailors, and marines  who fought our first battles of this war against overwhelming odds the  heroes, living and dead, of Wake and Bataan and Guadalcanal, of the Java  Sea and Midway and the North Atlantic convoys. Their unconquerable spirit  will live forever.  
1943-5	1943	By far the largest and most important developments in the whole world-wide  strategic picture of 1942 were the events of the long fronts in Russia:  first, the implacable defense of Stalingrad; and, second, the offensives by  the Russian armies at various points that started in the latter part of  November and which still roll on with great force and effectiveness.  
1943-6	1943	The other major events of the year were: the series of Japanese advances in  the Philippines, the East Indies, Malaya, and Burma; the stopping of that  Japanese advance in the mid-Pacific, the South Pacific, and the Indian  Oceans; the successful defense of the Near East by the British  counterattack through Egypt and Libya; the American-British occupation of  North Africa. Of continuing importance in the year 1942 were the unending  and bitterly contested battles of the convoy routes, and the gradual  passing of air superiority from the Axis to the United Nations.  
1943-7	1943	The Axis powers knew that they must win the war in 1942--or eventually lose  everything. I do not need to tell you that our enemies did not win the war  in 1942.  
1943-8	1943	In the Pacific area, our most important victory in 1942 was the air and  naval battle off Midway Island. That action is historically important  because it secured for our use communication lines stretching thousands of  miles in every direction. In placing this emphasis on the Battle of Midway,  I am not unmindful of other successful actions in the Pacific, in the air  and on land and afloat--especially those on the Coral Sea and New Guinea  and in the Solomon Islands. But these actions were essentially defensive.  They were part of the delaying strategy that characterized this phase of  the war.  
1943-9	1943	During this period we inflicted steady losses upon the enemy--great losses  of Japanese planes and naval vessels, transports and cargo ships. As early  as one year ago, we set as a primary task in the war of the Pacific a  day-by-day and week-by-week and month-by-month destruction of more Japanese  war materials than Japanese industry could replace. Most certainly, that  task has been and is being performed by our fighting ships and planes. And  a large part of this task has been accomplished by the gallant crews of our  American submarines who strike on the other side of the Pacific at Japanese  ships--right up at the very mouth of the harbor of Yokohama.  
1943-10	1943	We know that as each day goes by, Japanese strength in ships and planes is  going down and down, and American strength in ships and planes is going up  and up. And so I sometimes feel that the eventual outcome can now be put on  a mathematical basis. That will become evident to the Japanese people  themselves when we strike at their own home islands, and bomb them  constantly from the air.  
1943-11	1943	And in the attacks against Japan, we shall be joined with the heroic people  of China--that great people whose ideals of peace are so closely akin to our  own. Even today we are flying as much lend-lease material into China as  ever traversed the Burma Road, flying it over mountains 17,000 feet high,  flying blind through sleet and snow. We shall overcome all the formidable  obstacles, and get the battle equipment into China to shatter the power of  our common enemy. From this war, China will realize the security, the  prosperity and the dignity, which Japan has sought so ruthlessly to  destroy.  
1943-12	1943	The period of our defensive attrition in the Pacific is drawing to a close.  Now our aim is to force the Japanese to fight. Last year, we stopped them.  This year, we intend to advance.  
1943-13	1943	Turning now to the European theater of war, during this past year it was  clear that our first task was to lessen the concentrated pressure on the  Russian front by compelling Germany to divert part of her manpower and  equipment to another theater of war. After months of secret planning and  preparation in the utmost detail, an enormous amphibious expedition was  embarked for French North Africa from the United States and the United  Kingdom in literally hundreds of ships. It reached its objectives with very  small losses, and has already produced an important effect upon the whole  situation of the war. It has opened to attack what Mr. Churchill well  described as "the under-belly of the Axis," and it has removed the always  dangerous threat of an Axis attack through West Africa against the South  Atlantic Ocean and the continent of South America itself.  
1943-14	1943	The well-timed and splendidly executed offensive from Egypt by the British  Eighth Army was a part of the same major strategy of the United Nations.  
1943-15	1943	Great rains and appalling mud and very limited communications have delayed  the final battles of Tunisia. The Axis is reinforcing its strong positions.  But I am confident that though the fighting will be tough, when the final  Allied assault is made, the last vestige of Axis power will be driven from  the whole of the south shores of the Mediterranean.  
1943-16	1943	Any review of the year 1942 must emphasize the magnitude and the diversity  of the military activities in which this Nation has become engaged. As I  speak to you, approximately one and a half million of our soldiers,  sailors, marines, and fliers are in service outside of our continental  limits, all through the world. Our merchant seamen, in addition, are  carrying supplies to them and to our allies over every sea lane.  
1943-17	1943	Few Americans realize the amazing growth of our air strength, though I am  sure our enemy does. Day in and day out our forces are bombing the enemy  and meeting him in combat on many different fronts in every part of the  world. And for those who question the quality of our aircraft and the  ability of our fliers, I point to the fact that, in Africa, we are shooting  down two enemy planes to every one we lose, and in the Pacific and the  Southwest Pacific we are shooting them down four to one.  
1943-18	1943	We pay great tribute--the tribute of the United States of America--to the  fighting men of Russia and China and Britain and the various members of the  British Commonwealth--the millions of men who through the years of this war  have fought our common enemies, and have denied to them the world conquest  which they sought.  
1943-19	1943	We pay tribute to the soldiers and fliers and seamen of others of the  United Nations whose countries have been overrun by Axis hordes.  
1943-20	1943	As a result of the Allied occupation of North Africa, powerful units of the  French Army and Navy are going into action. They are in action with the  United Nations forces. We welcome them as allies and as friends. They join  with those Frenchmen who, since the dark days of June, 1940, have been  fighting valiantly for the liberation of their stricken country.  
1943-21	1943	We pay tribute to the fighting leaders of our allies, to Winston Churchill,  to Joseph Stalin, and to the Generalissimo Chiang Kai-shek. Yes, there is a  very great unanimity between the leaders of the United Nations. This unity  is effective in planning and carrying out the major strategy of this war  and in building up and in maintaining the lines of supplies.  
1943-22	1943	I cannot prophesy. I cannot tell you when or where the United Nations are  going to strike next in Europe. But we are going to strike--and strike  hard. I cannot tell you whether we are going to hit them in Norway, or  through the Low Countries, or in France, or through Sardinia or Sicily, or  through the Balkans, or through Poland--or at several points  simultaneously. But I can tell you that no matter where and when we strike  by land, we and the British and the Russians will hit them from the air  heavily and relentlessly. Day in and day out we shall heap tons upon tons  of high explosives on their war factories and utilities and seaports.  
1943-23	1943	Hitler and Mussolini will understand now the enormity of their  miscalculations--that the Nazis would always have the advantage of superior  air power as they did when they bombed Warsaw, and Rotterdam, and London  and Coventry. That superiority has gone--forever.  
1943-24	1943	Yes, the Nazis and the Fascists have asked for it--and they are going to get  it.  
1943-25	1943	Our forward progress in this war has depended upon our progress on the  production front.  
1943-26	1943	There has been criticism of the management and conduct of our war  production. Much of this self-criticism has had a healthy effect. It has  spurred us on. It has reflected a normal American impatience to get on with  the job. We are the kind of people who are never quite satisfied with  anything short of miracles.  
1943-27	1943	But there has been some criticism based on guesswork and even on malicious  falsification of fact. Such criticism creates doubts and creates fears, and  weakens our total effort.  
1943-28	1943	I do not wish to suggest that we should be completely satisfied with our  production progress today, or next month, or ever. But I can report to you  with genuine pride on what has been accomplished in 1942.  
1943-29	1943	A year ago we set certain production goals for 1942 and for 1943. Some  people, including some experts, thought that we had pulled some big figures  out of a hat just to frighten the Axis. But we had confidence in the  ability of our people to establish new records. And that confidence has  been justified.  
1943-30	1943	Of course, we realized that some production objectives would have to be  changed--some of them adjusted upward, and others downward; some items  would be taken out of the program altogether, and others added. This was  inevitable as we gained battle experience, and as technological  improvements were made.  
1943-31	1943	Our 1942 airplane production and tank production fell short,  numerically--stress the word numerically of the goals set a year ago.  Nevertheless, we have plenty of reason to be proud of our record for 1942.  We produced 48,000 military planes--more than the airplane production of  Germany, Italy, and Japan put together. Last month, in December, we  produced 5,500 military planes and the rate is rapidly rising. Furthermore,  we must remember that as each month passes by, the averages of our types  weigh more, take more man-hours to make, and have more striking power.  
1943-32	1943	In tank production, we revised our schedule--and for good and sufficient  reasons. As a result of hard experience in battle, we have diverted a  portion of our tank-producing capacity to a stepped-up production of new,  deadly field weapons, especially self-propelled artillery.  
1943-33	1943	Here are some other production figures:  
1943-34	1943	In 1942, we produced 56,000 combat vehicles, such as tanks and  self-propelled artillery.  
1943-35	1943	In 1942, we produced 670,000 machine guns, six times greater than our  production in 1941 and three times greater than our total production during  the year and a half of our participation in the first World War.  
1943-36	1943	We produced 21,000 anti-tank guns, six times greater than our 1941  production.  
1943-37	1943	We produced ten and a quarter billion rounds of small-arms ammunition, five  times greater than our 1941 production and three times greater than our  total production in the first World War.  
1943-38	1943	We produced 181 million rounds of artillery ammunition, twelve times  greater than our 1941 production and ten times greater than our total  production in the first World War.  
1943-39	1943	I think the arsenal of democracy is making good.  
1943-40	1943	These facts and figures that I have given will give no great aid and  comfort to the enemy. On the contrary, I can imagine that they will give  him considerable discomfort. I suspect that Hitler and Tojo will find it  difficult to explain to the German and Japanese people just why it is that  "decadent, inefficient democracy" can produce such phenomenal quantities of  weapons and munitions--and fighting men.  
1943-41	1943	We have given the lie to certain misconceptions--which is an extremely  polite word--especially the one which holds that the various blocs or  groups within a free country cannot forego their political and economic  differences in time of crisis and work together toward a common goal.  
1943-42	1943	While we have been achieving this miracle of production, during the past  year our armed forces have grown from a little over 2,000,000 to 7,000,000.  In other words, we have withdrawn from the labor force and the farms some  5,000,000 of our younger workers. And in spite of this, our farmers have  contributed their share to the common effort by producing the greatest  quantity of food ever made available during a single year in all our  history.  
1943-43	1943	I wonder is there any person among us so simple as to believe that all this  could have been done without creating some dislocations in our normal  national life, some inconveniences, and even some hardships?  
1943-44	1943	Who can have hoped to have done this without burdensome Government  regulations which are a nuisance to everyone--including those who have the  thankless task of administering them?  
1943-45	1943	We all know that there have been mistakes--mistakes due to the inevitable  process of trial and error inherent in doing big things for the first time.  We all know that there have been too many complicated forms and  questionnaires. I know about that. I have had to fill some of them out  myself.  
1943-46	1943	But we are determined to see to it that our supplies of food and other  essential civilian goods are distributed on a fair and just basis--to rich  and poor, management and labor, farmer and city dweller alike. We are  determined to keep the cost of living at a stable level. All this has  required much information. These forms and questionnaires represent an  honest and sincere attempt by honest and sincere officials to obtain this  information.  
1943-47	1943	We have learned by the mistakes that we have made.  
1943-48	1943	Our experience will enable us during the coming year to improve the  necessary mechanisms of wartime economic controls, and to simplify  administrative procedures. But we do not intend to leave things so lax that  loopholes will be left for cheaters, for chiselers, or for the manipulators  of the black market.  
1943-49	1943	Of course, there have been disturbances and inconveniences--and even  hardships. And there will be many, many more before we finally win. Yes,  1943 will not be an easy year for us on the home front. We shall feel in  many ways in our daily lives the sharp pinch of total war.  
1943-50	1943	Fortunately, there are only a few Americans who place appetite above  patriotism. The overwhelming majority realize that the food we send abroad  is for essential military purposes, for our own and Allied fighting forces,  and for necessary help in areas that we occupy.  
1943-51	1943	We Americans intend to do this great job together. In our common labors we  must build and fortify the very foundation of national unity--confidence in  one another.  
1943-52	1943	It is often amusing, and it is sometimes politically profitable, to picture  the City of Washington as a madhouse, with the Congress and the  Administration disrupted with confusion and indecision and general  incompetence.  
1943-53	1943	However--what matters most in war is results. And the one pertinent fact is  that after only a few years of preparation and only one year of warfare, we  are able to engage, spiritually as well as physically, in the total waging  of a total war.  
1943-54	1943	Washington may be a madhouse--but only in the sense that it is the Capital  City of a Nation which is fighting mad. And I think that Berlin and Rome  and Tokyo, which had such contempt for the obsolete methods of democracy,  would now gladly use all they could get of that same brand of madness.  
1943-55	1943	And we must not forget that our achievements in production have been  relatively no greater than those of the Russians and the British and the  Chinese who have developed their own war industries under the incredible  difficulties of battle conditions. They have had to continue work through  bombings and blackouts. And they have never quit.  
1943-56	1943	We Americans are in good, brave company in this war, and we are playing our  own, honorable part in the vast common effort.  
1943-57	1943	As spokesmen for the United States Government, you and I take off our hats  to those responsible for our American production--to the owners, managers,  and supervisors, to the draftsmen and the engineers, and to the workers--  men and women--in factories and arsenals and shipyards and mines and mills  and forests--and railroads and on highways.  
1943-58	1943	We take off our hats to the farmers who have faced an unprecedented task of  feeding not only a great Nation but a great part of the world.  
1943-59	1943	We take off our hats to all the loyal, anonymous, untiring men and women  who have worked in private employment and in Government and who have  endured rationing and other stringencies with good humor and good will.  
1943-60	1943	Yes, we take off our hats to all Americans who have contributed so  magnificently to our common cause.  
1943-61	1943	I have sought to emphasize a sense of proportion in this review of the  events of the war and the needs of the war.  
1943-62	1943	We should never forget the things we are fighting for. But, at this  critical period of the war, we should confine ourselves to the larger  objectives and not get bogged down in argument over methods and details.  
1943-63	1943	We, and all the United Nations, want a decent peace and a durable peace. In  the years between the end of the first World War and the beginning of the  second World War, we were not living under a decent or a durable peace.  
1943-64	1943	I have reason to know that our boys at the front are concerned with two  broad aims beyond the winning of the war; and their thinking and their  opinion coincide with what most Americans here back home are mulling over.  They know, and we know, that it would be inconceivable--it would, indeed, be  sacrilegious--if this Nation and the world did not attain some real,  lasting good out of all these efforts and sufferings and bloodshed and  death.  
1943-65	1943	The men in our armed forces want a lasting peace, and, equally, they want  permanent employment for themselves, their families, and their neighbors  when they are mustered out at the end of the war.  
1943-66	1943	Two years ago I spoke in my Annual Message of four freedoms. The blessings  of two of them--freedom of speech and freedom of religion--are an essential  part of the very life of this Nation; and we hope that these blessings will  be granted to all men everywhere.  
1943-67	1943	'The people at home, and the people at the front, are wondering a little  about the third freedom--freedom from want. To them it means that when they  are mustered out, when war production is converted to the economy of peace,  they will have the right to expect full employment--full employment for  themselves and for all able-bodied men and women in America who want to  work.  
1943-68	1943	They expect the opportunity to work, to run their farms, their stores, to  earn decent wages. They are eager to face the risks inherent in our system  of free enterprise.  
1943-69	1943	They do not want a postwar America which suffers from undernourishment or  slums--or the dole. They want no get-rich-quick era of bogus "prosperity"  which will end for them in selling apples on a street corner, as happened  after the bursting of the boom in 1929.  
1943-70	1943	When you talk with our young men and our young women, you will find they  want to work for themselves and for their families; they consider that they  have the right to work; and they know that after the last war their fathers  did not gain that right.  
1943-71	1943	When you talk with our young men and women, you will find that with the  opportunity for employment they want assurance against the evils of all  major economic hazards--assurance that will extend from the cradle to the  grave. And this great Government can and must provide this assurance.  
1943-72	1943	I have been told that this is no time to speak of a better America after  the war. I am told it is a grave error on my part.  
1943-73	1943	I dissent.  
1943-74	1943	And if the security of the individual citizen, or the family, should become  a subject of national debate, the country knows where I stand.  
1943-75	1943	I say this now to this Seventy-eighth Congress, because it is wholly  possible that freedom from want--the right of employment, the right of  assurance against life's hazards--will loom very large as a task of America  during the coming two years.  
1943-76	1943	I trust it will not be regarded as an issue--but rather as a task for all of  us to study sympathetically, to work out with a constant regard for the  attainment of the objective, with fairness to all and with injustice to  none.  
1943-77	1943	In this war of survival we must keep before our minds not only the evil  things we fight against but the good things we are fighting for. We fight  to retain a great past--and we fight to gain a greater future.  
1943-78	1943	Let us remember, too, that economic safety for the America of the future is  threatened unless a greater economic stability comes to the rest of the  world. We cannot make America an island in either a military or an economic  sense. Hitlerism, like any other form of crime or disease, can grow from  the evil seeds of economic as well as military feudalism.  
1943-79	1943	Victory in this war is the first and greatest goal before us. Victory in  the peace is the next. That means striving toward the enlargement of the  security of man here and throughout the world--and, finally, striving for  the fourth freedom--freedom from fear.  
1943-80	1943	It is of little account for any of us to talk of essential human needs, of  attaining security, if we run the risk of another World War in ten or  twenty or fifty years. That is just plain common sense. Wars grow in size,  in death and destruction, and in the inevitability of engulfing all  Nations, in inverse ratio to the shrinking size of the world as a result of  the conquest of the air. I shudder to think of what will happen to  humanity, including ourselves, if this war ends in an inconclusive peace,  and another war breaks out when the babies of today have grown to fighting  age.  
1943-81	1943	Every normal American prays that neither he nor his sons nor his grandsons  will be compelled to go through this horror again.  
1943-82	1943	Undoubtedly a few Americans, even now, think that this Nation can end this  war comfortably and then climb back into an American hole and pull the hole  in after them.  
1943-83	1943	But we have learned that we can never dig a hole so deep that it would be  safe against predatory animals. We have also learned that if we do not pull  the fangs of the predatory animals of this world, they will multiply and  grow in strength--and they will be at our throats again once more in a  short generation.  
1943-84	1943	Most Americans realize more clearly than ever before that modern war  equipment in the hands of aggressor Nations can bring danger overnight to  our own national existence or to that of any other Nation--or island--or  continent.  
1943-85	1943	It is clear to us that if Germany and Italy and Japan--or any one of them--  remain armed at the end of this war, or are permitted to rearm, they will  again, and inevitably, embark upon an ambitious career of world conquest.  They must be disarmed and kept disarmed, and they must abandon the  philosophy, and the teaching of that philosophy, which has brought so much  suffering to the world.  
1943-86	1943	After the first World War we tried to achieve a formula for permanent  peace, based on a magnificent idealism. We failed. But, by our failure, we  have learned that we cannot maintain peace at this stage of human  development by good intentions alone.  
1943-87	1943	Today the United Nations are the mightiest military coalition in all  history. They represent an overwhelming majority of the population of the  world. Bound together in solemn agreement that they themselves will not  commit acts of aggression or conquest against any of their neighbors, the  United Nations can and must remain united for the maintenance of peace by  preventing any attempt to rearm in Germany, in Japan, in Italy, or in any  other Nation which seeks to violate the Tenth Commandment--"Thou shalt not  covet."  
1943-88	1943	There are cynics, there are skeptics who say it cannot be done. The  American people and all the freedom-loving peoples of this earth are now  demanding that it must be done. And the will of these people shall  prevail.  
1943-89	1943	The very philosophy of the Axis powers is based on a profound contempt for  the human race. If, in the formation of our future policy, we were guided  by the same cynical contempt, then we should be surrendering to the  philosophy of our enemies, and our victory would turn to defeat.  
1943-90	1943	The issue of this war is the basic issue between those who believe in  mankind and those who do not--the ancient issue between those who put their  faith in the people and those who put their faith in dictators and tyrants.  There have always been those who did not believe in the people, who  attempted to block their forward movement across history, to force them  back to servility and suffering and silence.  
1943-91	1943	The people have now gathered their strength. They are moving forward in  their might and power--and no force, no combination of forces, no trickery,  deceit, or violence, can stop them now. They see before them the hope of  the world--a decent, secure, peaceful life for men everywhere.  
1943-92	1943	I do not prophesy when this war will end.  
1943-93	1943	But I do believe that this year of 1943 will give to the United Nations a  very substantial advance along the roads that lead to Berlin and Rome and  Tokyo.  
1943-94	1943	I tell you it is within the realm of possibility that this Seventy-eighth  Congress may have the historic privilege of helping greatly to save the  world from future fear.  
1943-95	1943	Therefore, let us all have confidence, let us redouble our efforts.  
1943-96	1943	A tremendous, costly, long-enduring task in peace as well as in war is  still ahead of us.  
1943-97	1943	But, as we face that continuing task, we may know that the state of this  Nation is good--the heart of this Nation is sound--the spirit of this Nation  is strong--the faith of this Nation is eternal.  
1944-1	1944	To the Congress:  
1944-2	1944	This Nation in the past two years has become an active partner in the  world's greatest war against human slavery.  
1944-3	1944	We have joined with like-minded people in order to defend ourselves in a  world that has been gravely threatened with gangster rule.  
1944-4	1944	But I do not think that any of us Americans can be content with mere  survival. Sacrifices that we and our allies are making impose upon us all a  sacred obligation to see to it that out of this war we and our children  will gain something better than mere survival.  
1944-5	1944	We are united in determination that this war shall not be followed by  another interim which leads to new disaster--that we shall not repeat the  tragic errors of ostrich isolationism--that we shall not repeat the excesses  of the wild twenties when this Nation went for a joy ride on a roller  coaster which ended in a tragic crash.  
1944-6	1944	When Mr. Hull went to Moscow in October, and when I went to Cairo and  Teheran in November, we knew that we were in agreement with our allies in  our common determination to fight and win this war. But there were many  vital questions concerning the future peace, and they were discussed in an  atmosphere of complete candor and harmony.  
1944-7	1944	In the last war such discussions, such meetings, did not even begin until  the shooting had stopped and the delegates began to assemble at the peace  table. There had been no previous opportunities for man-to-man discussions  which lead to meetings of minds. The result was a peace which was not a  peace.  
1944-8	1944	That was a mistake which we are not repeating in this war.  
1944-9	1944	And right here I want to address a word or two to some suspicious souls who  are fearful that Mr. Hull or I have made "commitments" for the future which  might pledge this Nation to secret treaties, or to enacting the role of  Santa Claus.  
1944-10	1944	To such suspicious souls--using a polite terminology--I wish to say that Mr.  Churchill, and Marshal Stalin, and Generalissimo Chiang Kai-shek are all  thoroughly conversant with the provisions of our Constitution. And so is  Mr. Hull. And so am I.  
1944-11	1944	Of course we made some commitments. We most certainly committed ourselves  to very large and very specific military plans which require the use of all  Allied forces to bring about the defeat of our enemies at the earliest  possible time.  
1944-12	1944	But there were no secret treaties or political or financial commitments.  
1944-13	1944	The one supreme objective for the future, which we discussed for each  Nation individually, and for all the United Nations, can be summed up in  one word: Security.  
1944-14	1944	And that means not only physical security which provides safety from  attacks by aggressors. It means also economic security, social security,  moral security--in a family of Nations.  
1944-15	1944	In the plain down-to-earth talks that I had with the Generalissimo and  Marshal Stalin and Prime Minister Churchill, it was abundantly clear that  they are all most deeply interested in the resumption of peaceful progress  by their own peoples--progress toward a better life. All our allies want  freedom to develop their lands and resources, to build up industry, to  increase education and individual opportunity, and to raise standards of  living.  
1944-16	1944	All our allies have learned by bitter experience that real development will  not be possible if they are to be diverted from their purpose by repeated  wars--or even threats of war.  
1944-17	1944	China and Russia are truly united with Britain and America in recognition  of this essential fact:  
1944-18	1944	The best interests of each Nation, large and small, demand that all  freedom-loving Nations shall join together in a just and durable system of  peace. In the present world situation, evidenced by the actions of Germany,  Italy, and Japan, unquestioned military control over disturbers of the  peace is as necessary among Nations as it is among citizens in a community.  And an equally basic essential to peace is a decent standard of living for  all individual men and women and children in all Nations. Freedom from fear  is eternally linked with freedom from want.  
1944-19	1944	There are people who burrow through our Nation like unseeing moles, and  attempt to spread the suspicion that if other Nations are encouraged to  raise their standards of living, our own American standard of living must  of necessity be depressed.  
1944-20	1944	The fact is the very contrary. It has been shown time and again that if the  standard of living of any country goes up, so does its purchasing power--  and that such a rise encourages a better standard of living in neighboring  countries with whom it trades. That is just plain common sense--and it is  the kind of plain common sense that provided the basis for our discussions  at Moscow, Cairo, and Teheran.  
1944-21	1944	Returning from my journeyings, I must confess to a sense of "let-down" when  I found many evidences of faulty perspective here in Washington. The faulty  perspective consists in overemphasizing lesser problems and thereby  underemphasizing the first and greatest problem.  
1944-22	1944	The overwhelming majority of our people have met the demands of this war  with magnificent courage and understanding. They have accepted  inconveniences; they have accepted hardships; they have accepted tragic  sacrifices. And they are ready and eager to make whatever further  contributions are needed to win the war as quickly as possible--if only  they are given the chance to know what is required of them.  
1944-23	1944	However, while the majority goes on about its great work without complaint,  a noisy minority maintains an uproar of demands for special favors for  special groups. There are pests who swarm through the lobbies of the  Congress and the cocktail bars of Washington, representing these special  groups as opposed to the basic interests of the Nation as a whole. They  have come to look upon the war primarily as a chance to make profits for  themselves at the expense of their neighbors--profits in money or in terms  of political or social preferment.  
1944-24	1944	Such selfish agitation can be highly dangerous in wartime. It creates  confusion. It damages morale. It hampers our national effort. It muddies  the waters and therefore prolongs the war.  
1944-25	1944	If we analyze American history impartially, we cannot escape the fact that  in our past we have not always forgotten individual and selfish and  partisan interests in time of war--we have not always been united in purpose  and direction. We cannot overlook the serious dissensions and the lack of  unity in our war of the Revolution, in our War of 1812, or in our War  Between the States, when the survival of the Union itself was at stake.  
1944-26	1944	In the first World War we came closer to national unity than in any  previous war. But that war lasted only a year and a half, and increasing  signs of disunity began to appear during the final months of the conflict.  
1944-27	1944	In this war, we have been compelled to learn how interdependent upon each  other are all groups and sections of the population of America.  
1944-28	1944	Increased food costs, for example, will bring new demands for wage  increases from all war workers, which will in turn raise all prices of all  things including those things which the farmers themselves have to buy.  Increased wages or prices will each in turn produce the same results. They  all have a particularly disastrous result on all fixed income groups.  
1944-29	1944	And I hope you will remember that all of us in this Government represent  the fixed income group just as much as we represent business owners,  workers, and farmers. This group of fixed income people includes: teachers,  clergy, policemen, firemen, widows and minors on fixed incomes, wives and  dependents of our soldiers and sailors, and old-age pensioners. They and  their families add up to one-quarter of our one hundred and thirty million  people. They have few or no high pressure representatives at the Capitol.  In a period of gross inflation they would be the worst sufferers.  
1944-30	1944	If ever there was a time to subordinate individual or group selfishness to  the national good, that time is now. Disunity at home--bickerings,  self-seeking partisanship, stoppages of work, inflation, business as usual,  politics as usual, luxury as usual these are the influences which can  undermine the morale of the brave men ready to die at the front for us  here.  
1944-31	1944	Those who are doing most of the complaining are not deliberately striving  to sabotage the national war effort. They are laboring under the delusion  that the time is past when we must make prodigious sacrifices--that the war  is already won and we can begin to slacken off. But the dangerous folly of  that point of view can be measured by the distance that separates our  troops from their ultimate objectives in Berlin and Tokyo--and by the sum of  all the perils that lie along the way.  
1944-32	1944	Overconfidence and complacency are among our deadliest enemies. Last  spring--after notable victories at Stalingrad and in Tunisia and against the  U-boats on the high seas--overconfidence became so pronounced that war  production fell off. In two months, June and July, 1943, more than a  thousand airplanes that could have been made and should have been made were  not made. Those who failed to make them were not on strike. They were  merely saying, "The war's in the bag--so let's relax."  
1944-33	1944	That attitude on the part of anyone--Government or management or labor--can  lengthen this war. It can kill American boys.  
1944-34	1944	Let us remember the lessons of 1918. In the summer of that year the tide  turned in favor of the allies. But this Government did not relax. In fact,  our national effort was stepped up. In August, 1918, the draft age limits  were broadened from 21-31 to 18-45. The President called for "force to the  utmost," and his call was heeded. And in November, only three months later,  Germany surrendered.  
1944-35	1944	That is the way to fight and win a war--all out--and not with half-an-eye on  the battlefronts abroad and the other eye-and-a-half on personal, selfish,  or political interests here at home.  
1944-36	1944	Therefore, in order to concentrate all our energies and resources on  winning the war, and to maintain a fair and stable economy at home, I  recommend that the Congress adopt:  
1944-37	1944	(1) A realistic tax law--which will tax all unreasonable profits, both  individual and corporate, and reduce the ultimate cost of the war to our  sons and daughters. The tax bill now under consideration by the Congress  does not begin to meet this test.  
1944-38	1944	(2) A continuation of the law for the renegotiation of war contracts--which  will prevent exorbitant profits and assure fair prices to the Government.  For two long years I have pleaded with the Congress to take undue profits  out of war.  
1944-39	1944	(3) A cost of food law--which will enable the Government (a) to place a  reasonable floor under the prices the farmer may expect for his production;  and (b) to place a ceiling on the prices a consumer will have to pay for  the food he buys. This should apply to necessities only; and will require  public funds to carry out. It will cost in appropriations about one percent  of the present annual cost of the war.  
1944-40	1944	(4) Early reenactment of the stabilization statute of October, 1942. This  expires June 30, 1944, and if it is not extended well in advance, the  country might just as well expect price chaos by summer.  
1944-41	1944	We cannot have stabilization by wishful thinking. We must take positive  action to maintain the integrity of the American dollar.  
1944-42	1944	(5) A national service law--which, for the duration of the war, will  prevent strikes, and, with certain appropriate exceptions, will make  available for war production or for any other essential services every  able-bodied adult in this Nation.  
1944-43	1944	These five measures together form a just and equitable whole. I would not  recommend a national service law unless the other laws were passed to keep  down the cost of living, to share equitably the burdens of taxation, to  hold the stabilization line, and to prevent undue profits.  
1944-44	1944	The Federal Government already has the basic power to draft capital and  property of all kinds for war purposes on a basis of just compensation.  
1944-45	1944	As you know, I have for three years hesitated to recommend a national  service act. Today, however, I am convinced of its necessity. Although I  believe that we and our allies can win the war without such a measure, I am  certain that nothing less than total mobilization of all our resources of  manpower and capital will guarantee an earlier victory, and reduce the toll  of suffering and sorrow and blood.  
1944-46	1944	I have received a joint recommendation for this law from the heads of the  War Department, the Navy Department, and the Maritime Commission. These are  the men who bear responsibility for the procurement of the necessary arms  and equipment, and for the successful prosecution of the war in the field.  They say:  
1944-47	1944	"When the very life of the Nation is in peril the responsibility for  service is common to all men and women. In such a time there can be no  discrimination between the men and women who are assigned by the Government  to its defense at the battlefront and the men and women assigned to  producing the vital materials essential to successful military operations.  A prompt enactment of a National Service Law would be merely an expression  of the universality of this responsibility."  
1944-48	1944	I believe the country will agree that those statements are the solemn  truth.  
1944-49	1944	National service is the most democratic way to wage a war. Like selective  service for the armed forces, it rests on the obligation of each citizen to  serve his Nation to his utmost where he is best qualified.  
1944-50	1944	It does not mean reduction in wages. It does not mean loss of retirement  and seniority rights and benefits. It does not mean that any substantial  numbers of war workers will be disturbed in their present jobs. Let these  facts be wholly clear.  
1944-51	1944	Experience in other democratic Nations at war--Britain, Canada, Australia,  and New Zealand--has shown that the very existence of national service  makes unnecessary the widespread use of compulsory power. National service  has proven to be a unifying moral force based on an equal and comprehensive  legal obligation of all people in a Nation at war.  
1944-52	1944	There are millions of American men and women who are not in this war at  all. It is not because they do not want to be in it. But they want to know  where they can best do their share. National service provides that  direction. It will be a means by which every man and woman can find that  inner satisfaction which comes from making the fullest possible  contribution to victory.  
1944-53	1944	I know that all civilian war workers will be glad to be able to say many  years hence to their grandchildren: "Yes, I, too, was in service in the  great war. I was on duty in an airplane factory, and I helped make hundreds  of fighting planes. The Government told me that in doing that I was  performing my most useful work in the service of my country."  
1944-54	1944	It is argued that we have passed the stage in the war where national  service is necessary. But our soldiers and sailors know that this is not  true. We are going forward on a long, rough road--and, in all journeys, the  last miles are the hardest. And it is for that final effort--for the total  defeat of our enemies--that we must mobilize our total resources. The  national war program calls for the employment of more people in 1944 than  in 1943.  
1944-55	1944	It is my conviction that the American people will welcome this win-the-war  measure which is based on the eternally just principle of "fair for one,  fair for all."  
1944-56	1944	It will give our people at home the assurance that they are standing  four-square behind our soldiers and sailors. And it will give our enemies  demoralizing assurance that we mean business--that we, 130,000,000  Americans, are on the march to Rome, Berlin, and Tokyo.  
1944-57	1944	I hope that the Congress will recognize that, although this is a political  year, national service is an issue which transcends politics. Great power  must be used for great purposes.  
1944-58	1944	As to the machinery for this measure, the Congress itself should determine  its nature--but it should be wholly nonpartisan in its make-up.  
1944-59	1944	Our armed forces are valiantly fulfilling their responsibilities to our  country and our people. Now the Congress faces the responsibility for  taking those measures which are essential to national security in this the  most decisive phase of the Nation's greatest war.  
1944-60	1944	Several alleged reasons have prevented the enactment of legislation which  would preserve for our soldiers and sailors and marines the fundamental  prerogative of citizenship--the right to vote. No amount of legalistic  argument can becloud this issue in the eyes of these ten million American  citizens. Surely the signers of the Constitution did not intend a document  which, even in wartime, would be construed to take away the franchise of  any of those who are fighting to preserve the Constitution itself.  
1944-61	1944	Our soldiers and sailors and marines know that the overwhelming majority of  them will be deprived of the opportunity to vote, if the voting machinery  is left exclusively to the States under existing State laws--and that there  is no likelihood of these laws being changed in time to enable them to vote  at the next election. The Army and Navy have reported that it will be  impossible effectively to administer forty-eight different soldier voting  laws. It is the duty of the Congress to remove this unjustifiable  discrimination against the men and women in our armed forces--and to do it  as quickly as possible.  
1944-62	1944	It is our duty now to begin to lay the plans and determine the strategy for  the winning of a lasting peace and the establishment of an American  standard of living higher than ever before known. We cannot be content, no  matter how high that general standard of living may be, if some fraction of  our people--whether it be one-third or one-fifth or one-tenth--is ill-fed,  ill-clothed, ill housed, and insecure.  
1944-63	1944	This Republic had its beginning, and grew to its present strength, under  the protection of certain inalienable political rights--among them the right  of free speech, free press, free worship, trial by jury, freedom from  unreasonable searches and seizures. They were our rights to life and  liberty.  
1944-64	1944	As our Nation has grown in size and stature, however--as our industrial  economy expanded--these political rights proved inadequate to assure us  equality in the pursuit of happiness.  
1944-65	1944	We have come to a clear realization of the fact that true individual  freedom cannot exist without economic security and independence.  "Necessitous men are not free men." People who are hungry and out of a job  are the stuff of which dictatorships are made.  
1944-66	1944	In our day these economic truths have become accepted as self-evident. We  have accepted, so to speak, a second Bill of Rights under which a new basis  of security and prosperity can be established for all regardless of  station, race, or creed.  
1944-67	1944	Among these are:  
1944-68	1944	The right to a useful and remunerative job in the industries or shops or  farms or mines of the Nation;  
1944-69	1944	The right to earn enough to provide adequate food and clothing and  recreation;  
1944-70	1944	The right of every farmer to raise and sell his products at a return which  will give him and his family a decent living;  
1944-71	1944	The right of every businessman, large and small, to trade in an atmosphere  of freedom from unfair competition and domination by monopolies at home or  abroad;  
1944-72	1944	The right of every family to a decent home;  
1944-73	1944	The right to adequate medical care and the opportunity to achieve and enjoy  good health;  
1944-74	1944	The right to adequate protection from the economic fears of old age,  sickness, accident, and unemployment;  
1944-75	1944	The right to a good education.  
1944-76	1944	All of these rights spell security. And after this war is won we must be  prepared to move forward, in the implementation of these rights, to new  goals of human happiness and well-being.  
1944-77	1944	America's own rightful place in the world depends in large part upon how  fully these and similar rights have been carried into practice for our  citizens. For unless there is security here at home there cannot be lasting  peace in the world.  
1944-78	1944	One of the great American industrialists of our day--a man who has rendered  yeoman service to his country in this crisis--recently emphasized the grave  dangers of "rightist reaction" in this Nation. All clear-thinking  businessmen share his concern. Indeed, if such reaction should develop--if  history were to repeat itself and we were to return to the so-called  "normalcy" of the 1920's--then it is certain that even though we shall have  conquered our enemies on the battlefields abroad, we shall have yielded to  the spirit of Fascism here at home.  
1944-79	1944	I ask the Congress to explore the means for implementing this economic bill  of rights--for it is definitely the responsibility of the Congress so to  do. Many of these problems are already before committees of the Congress in  the form of proposed legislation. I shall from time to time communicate  with the Congress with respect to these and further proposals. In the event  that no adequate program of progress is evolved, I am certain that the  Nation will be conscious of the fact.  
1944-80	1944	Our fighting men abroad--and their families at home--expect such a program  and have the right to insist upon it. It is to their demands that this  Government should pay heed rather than to the whining demands of selfish  pressure groups who seek to feather their nests while young Americans are  dying.  
1944-81	1944	The foreign policy that we have been following--the policy that guided us at  Moscow, Cairo, and Teheran--is based on the common sense principle which was  best expressed by Benjamin Franklin on July 4, 1776: "We must all hang  together, or assuredly we shall all hang separately."  
1944-82	1944	I have often said that there are no two fronts for America in this war.  There is only one front. There is one line of unity which extends from the  hearts of the people at home to the men of our attacking forces in our  farthest outposts. When we speak of our total effort, we speak of the  factory and the field, and the mine as well as of the battleground--we  speak of the soldier and the civilian, the citizen and his Government.  
1944-83	1944	Each and every one of us has a solemn obligation under God to serve this  Nation in its most critical hour--to keep this Nation great--to make this  Nation greater in a better world.  
1945-1	1945	To the Congress:  
1945-2	1945	In considering the State of the Union, the war and the peace that is to  follow are naturally uppermost in the minds of all of us.  
1945-3	1945	This war must be waged--it is being waged--with the greatest and most  persistent intensity. Everything we are and have is at stake. Everything we  are and have will be given. American men, fighting far from home, have  already won victories which the world will never forget.  
1945-4	1945	We have no question of the ultimate victory. We have no question of the  cost. Our losses will be heavy.  
1945-5	1945	We and our allies will go on fighting together to ultimate total victory.  
1945-6	1945	We have seen a year marked, on the whole, by substantial progress toward  victory, even though the year ended with a setback for our arms, when the  Germans launched a ferocious counter-attack into Luxembourg and Belgium  with the obvious objective of cutting our line in the center.  
1945-7	1945	Our men have fought with indescribable and unforgettable gallantry under  most difficult conditions, and our German enemies have sustained  considerable losses while failing to obtain their objectives.  
1945-8	1945	The high tide of this German effort was reached two days after Christmas.  Since then we have reassumed the offensive, rescued the isolated garrison  at Bastogne, and forced a German withdrawal along the whole line of the  salient. The speed with which we recovered from this savage attack was  largely possible because we have one supreme commander in complete control  of all the Allied armies in France. General Eisenhower has faced this  period of trial with admirable calm and resolution and with steadily  increasing success. He has my complete confidence.  
1945-9	1945	Further desperate attempts may well be made to break our lines, to slow our  progress. We must never make the mistake of assuming that the Germans are  beaten until the last Nazi has surrendered.  
1945-10	1945	And I would express another most serious warning against the poisonous  effects of enemy propaganda.  
1945-11	1945	The wedge that the Germans attempted to drive in western Europe was less  dangerous in actual terms of winning the war than the wedges which they are  continually attempting to drive between ourselves and our allies.  
1945-12	1945	Every little rumor which is intended to weaken our faith in our allies is  like an actual enemy agent in our midst--seeking to sabotage our war  effort. There are, here and there, evil and baseless rumors against the  Russians--rumors against the British--rumors against our own American  commanders in the field.  
1945-13	1945	When you examine these rumors closely, you will observe that every one of  them bears the same trade-mark--"Made in Germany."  
1945-14	1945	We must resist this divisive propaganda--we must destroy it--with the same  strength and the same determination that our fighting men are displaying as  they resist and destroy the panzer divisions.  
1945-15	1945	In Europe, we shall resume the attack and--despite temporary setbacks here  or there--we shall continue the attack relentlessly until Germany is  completely defeated.  
1945-16	1945	It is appropriate at this time to review the basic strategy which has  guided us through three years of war, and which will lead, eventually, to  total victory.  
1945-17	1945	The tremendous effort of the first years of this war was directed toward  the concentration of men and supplies in the various theaters of action at  the points where they could hurt our enemies most.  
1945-18	1945	It was an effort--in the language of the military men--of deployment of our  forces. Many battles--essential battles--were fought; many victories--vital  victories--were won. But these battles and these victories were fought and  won to hold back the attacking enemy, and to put us in positions from which  we and our allies could deliver the final, decisive blows.  
1945-19	1945	In the beginning our most important military task was to prevent our  enemies--the strongest and most violently aggressive powers that ever have  threatened civilization--from winning decisive victories. But even while we  were conducting defensive, delaying actions, we were looking forward to the  time when we could wrest the initiative from our enemies and place our  superior resources of men and materials into direct competition with them.  
1945-20	1945	It was plain then that the defeat of either enemy would require the massing  of overwhelming forces--ground, sea, and air--in positions from which we  and our allies could strike directly against the enemy homelands and  destroy the Nazi and Japanese war machines.  
1945-21	1945	In the case of Japan, we had to await the completion of extensive  preliminary operations--operations designed to establish secure supply lines  through the Japanese outer-zone defenses. This called for overwhelming sea  power and air power--supported by ground forces strategically employed  against isolated outpost garrisons.  
1945-22	1945	Always--from the very day we were attacked--it was right militarily as well  as morally to reject the arguments of those shortsighted people who would  have had us throw Britain and Russia to the Nazi wolves and concentrate  against the Japanese. Such people urged that we fight a purely defensive  war against Japan while allowing the domination of all the rest of the  world by Nazism and Fascism.  
1945-23	1945	In the European theater the necessary bases for the massing of ground and  air power against Germany were already available in Great Britain. In the  Mediterranean area we could begin ground operations against major elements  of the German Army as rapidly as we could put troops in the field, first in  North Africa and then in Italy.  
1945-24	1945	Therefore, our decision was made to concentrate the bulk of our ground and  air forces against Germany until her utter defeat. That decision was based  on all these factors; and it was also based on the realization that, of our  two enemies, Germany would be more able to digest quickly her conquests,  the more able quickly to convert the manpower and resources of her  conquered territory into a war potential.  
1945-25	1945	We had in Europe two active and indomitable allies--Britain and the Soviet  Union--and there were also the heroic resistance movements in the occupied  countries, constantly engaging and harassing the Germans. We cannot forget  how Britain held the line, alone, in 1940 and 1941; and at the same time,  despite ferocious bombardment from the air, built up a tremendous armaments  industry which enabled her to take the offensive at El Alamein in 1942.  
1945-26	1945	We cannot forget the heroic defense of Moscow and Leningrad and Stalingrad,  or the tremendous Russian offensives of 1943 and 1944 which destroyed  formidable German armies.  
1945-27	1945	Nor can we forget how, for more than seven long years, the Chinese people  have been sustaining the barbarous attacks of the Japanese and containing  large enemy forces on the vast areas of the Asiatic mainland.  
1945-28	1945	In the future we must never forget the lesson that we have learned--that we  must have friends who will work with us in peace as they have fought at our  side in war.  
1945-29	1945	As a result of the combined effort of the Allied forces, great military  victories were achieved in 1944: The liberation of France, Belgium, Greece,  and parts of The Netherlands, Norway, Poland, Yugoslavia, and  Czechoslovakia; the surrender of Rumania and Bulgaria; the invasion of  Germany itself and Hungary; the steady march through the Pacific islands to  the Philippines, Guam, and Saipan; and the beginnings of a mighty air  offensive against the Japanese islands.  
1945-30	1945	Now, as this Seventy-ninth Congress meets, we have reached the most  critical phase of the war.  
1945-31	1945	The greatest victory of the last year was, of course, the successful breach  on June 6, 1944, of the German "impregnable" seawall of Europe and the  victorious sweep of the Allied forces through France and Belgium and  Luxembourg--almost to the Rhine itself.  
1945-32	1945	The cross-channel invasion of the Allied armies was the greatest amphibious  operation in the history of the world. It overshadowed all other operations  in this or any other war in its immensity. Its success is a tribute to the  fighting courage of the soldiers who stormed the beaches--to the sailors  and merchant seamen who put the soldiers ashore and kept them supplied--and  to the military and naval leaders who achieved a real miracle of planning  and execution. And it is also a tribute to the ability of two Nations,  Britain and America, to plan together, and work together, and fight  together in perfect cooperation and perfect harmony.  
1945-33	1945	This cross-channel invasion was followed in August by a second great  amphibious operation, landing troops in southern France. In this, the same  cooperation and the same harmony existed between the American, French, and  other Allied forces based in North Africa and Italy.  
1945-34	1945	The success of the two invasions is a tribute also to the ability of many  men and women to maintain silence, when a few careless words would have  imperiled the lives of hundreds of thousands, and would have jeopardized  the whole vast undertakings.  
1945-35	1945	These two great operations were made possible by success in the Battle of  the Atlantic.  
1945-36	1945	Without this success over German submarines, we could not have built up our  invasion forces or air forces in Great Britain, nor could we have kept a  steady stream of supplies flowing to them after they had landed in France.  
1945-37	1945	The Nazis, however, may succeed in improving their submarines and their  crews. They have recently increased their U-boat activity. The Battle of  the Atlantic--like all campaigns in this war--demands eternal vigilance. But  the British, Canadian, and other Allied navies, together with our own, are  constantly on the alert.  
1945-38	1945	The tremendous operations in western Europe have overshadowed in the public  mind the less spectacular but vitally important Italian front. Its place in  the strategic conduct of the war in Europe has been obscured, and--by some  people unfortunately--underrated.  
1945-39	1945	It is important that any misconception on that score be corrected--now.  
1945-40	1945	What the Allied forces in Italy are doing is a well-considered part in our  strategy in Europe, now aimed at only one objective--the total defeat of  the Germans. These valiant forces in Italy are continuing to keep a  substantial portion of the German Army under constant pressure--including  some 20 first-line German divisions and the necessary supply and transport  and replacement troops--all of which our enemies need so badly elsewhere.  
1945-41	1945	Over very difficult terrain and through adverse weather conditions, our  Fifth Army and the British Eighth Army--reinforced by units from other  United Nations, including a brave and well equipped unit of the Brazilian  Army--have, in the past year, pushed north through bloody Cassino and the  Anzio beachhead, and through Rome until now they occupy heights overlooking  the valley of the Po.  
1945-42	1945	The greatest tribute which can be paid to the courage and fighting ability  of these splendid soldiers in Italy is to point out that although their  strength is about equal to that of the Germans they oppose, the Allies have  been continuously on the offensive.  
1945-43	1945	That pressure, that offensive, by our troops in Italy will continue.  
1945-44	1945	The American people--and every soldier now fighting in the Apennines--should  remember that the Italian front has not lost any of the importance which it  had in the days when it was the only Allied front in Europe.  
1945-45	1945	In the Pacific during the past year, we have conducted the fastest-moving  offensive in the history of modern warfare. We have driven the enemy back  more than 3,000 miles across the Central Pacific. A year ago, our conquest  of Tarawa was a little more than a month old.  
1945-46	1945	A year ago, we were preparing for our invasion of Kwajalein, the second of  our great strides across the Central Pacific to the Philippines.  
1945-47	1945	A year ago, General MacArthur was still fighting in New Guinea almost 1,500  miles from his present position in the Philippine Islands.  
1945-48	1945	We now have firmly established bases in the Mariana Islands, from which our  Super fortresses bomb Tokyo itself--and will continue to blast Japan in  ever-increasing numbers.  
1945-49	1945	Japanese forces in the Philippines have been cut in two. There is still  hard fighting ahead--costly fighting. But the liberation of the Philippines  will mean that Japan has been largely cut off from her conquests in the  East Indies.  
1945-50	1945	The landing of our troops on Leyte was the largest amphibious operation  thus far conducted in the Pacific.  
1945-51	1945	Moreover, these landings drew the Japanese Fleet into the first great sea  battle which Japan has risked in almost two years. Not since the night  engagements around Guadalcanal in November-December, 1942, had our Navy  been able to come to grips with major units of the Japanese Fleet. We had  brushed against their fleet in the first battle of the Philippine Sea in  June, 1944, but not until last October were we able really to engage a  major portion of the Japanese Navy in actual combat. The naval engagement  which raged for three days was the heaviest blow ever struck against  Japanese sea power.  
1945-52	1945	As a result of that battle, much of what is left of the Japanese Fleet has  been driven behind the screen of islands that separates the Yellow Sea, the  China Sea, and the Sea of Japan from the Pacific.  
1945-53	1945	Our Navy looks forward to any opportunity which the lords of the Japanese  Navy will give us to fight them again.  
1945-54	1945	The people of this Nation have a right to be proud of the courage and  fighting ability of the men in the armed forces--on all fronts. They also  have a right to be proud of American leadership which has guided their sons  into battle.  
1945-55	1945	The history of the generalship of this war has been a history of teamwork  and cooperation, of skill and daring. Let me give you one example out of  last year's operations in the Pacific.  
1945-56	1945	Last September Admiral Halsey led American naval task forces into  Philippine waters and north to the East China Sea, and struck heavy blows  at Japanese air and sea power.  
1945-57	1945	At that time it was our plan to approach the Philippines by further stages,  taking islands which we may call A, C, and E. However, Admiral Halsey  reported that a direct attack on Leyte appeared feasible. When General  MacArthur received the reports from Admiral Halsey's task forces, he also  concluded that it might be possible to attack the Japanese in the  Philippines directly--bypassing islands A, C, and E.  
1945-58	1945	Admiral Nimitz thereupon offered to make available to General MacArthur  several divisions which had been scheduled to take the intermediate  objectives. These discussions, conducted at great distances, all took place  in one day.  
1945-59	1945	General MacArthur immediately informed the Joint Chiefs of Staff here in  Washington that he was prepared to initiate plans for an attack on Leyte in  October. Approval of the change in plan was given on the same day.  
1945-60	1945	Thus, within the space of 24 hours, a major change of plans was  accomplished which involved Army and Navy forces from two different  theaters of operations--a change which hastened the liberation of the  Philippines and the final day of victory--a change which saved lives which  would have been expended in the capture of islands which are now  neutralized far behind our lines.  
1945-61	1945	Our over-all strategy has not neglected the important task of rendering all  possible aid to China. Despite almost insuperable difficulties, we  increased this aid during 1944. At present our aid to China must be  accomplished by air transport--there is no other way. By the end of 1944,  the Air Transport Command was carrying into China a tonnage of supplies  three times as great as that delivered a year ago, and much more, each  month, than the Burma Road ever delivered at its peak.  
1945-62	1945	Despite the loss of important bases in China, the tonnage delivered by air  transport has enabled General Chennault's Fourteenth Air Force, which  includes many Chinese flyers, to wage an effective and aggressive campaign  against the Japanese. In 1944 aircraft of the Fourteenth Air Force flew  more than 35,000 sorties against the Japanese and sank enormous tonnage of  enemy shipping, greatly diminishing the usefulness of the China Sea lanes.  
1945-63	1945	British, Dominion, and Chinese forces together with our own have not only  held the line in Burma against determined Japanese attacks but have gained  bases of considerable importance to the supply line into China.  
1945-64	1945	The Burma campaigns have involved incredible hardship, and have demanded  exceptional fortitude and determination. The officers and men who have  served with so much devotion in these far distant jungles and mountains  deserve high honor from their countrymen.  
1945-65	1945	In all of the far-flung operations of our own armed forces--on land, and sea  and in the air--the final job, the toughest job, has been performed by the  average, easy-going, hard-fighting young American, who carries the weight  of battle on his own shoulders.  
1945-66	1945	It is to him that we and all future generations of Americans must pay  grateful tribute.  
1945-67	1945	But--it is of small satisfaction to him to know that monuments will be  raised to him in the future. He wants, he needs, and he is entitled to  insist upon, our full and active support--now.  
1945-68	1945	Although unprecedented production figures have made possible our victories,  we shall have to increase our goals even more in certain items.  
1945-69	1945	Peak deliveries of supplies were made to the War Department in December,  1943. Due in part to cutbacks, we have not produced as much since then.  Deliveries of Army supplies were down by 15 percent by July, 1944, before  the upward trend was once more resumed.  
1945-70	1945	Because of increased demands from overseas, the Army Service Forces in the  month of October, 1944, had to increase its estimate of required production  by 10 percent. But in November, one month later, the requirements for 1945  had to be increased another 10 percent, sending the production goal well  above anything we have yet attained. Our armed forces in combat have  steadily increased their expenditure of medium and heavy artillery  ammunition. As we continue the decisive phases of this war, the munitions  that we expend will mount day by day.  
1945-71	1945	In October, 1944, while some were saying the war in Europe was over, the  Army was shipping more men to Europe than in any previous month of the  war.  
1945-72	1945	One of the most urgent immediate requirements of the armed forces is more  nurses. Last April the Army requirement for nurses was set at 50,000.  Actual strength in nurses was then 40,000. Since that time the Army has  tried to raise the additional 10,000. Active recruiting has been carried  on, but the net gain in eight months has been only 2,000. There are now  42,000 nurses in the Army.  
1945-73	1945	Recent estimates have increased the total number needed to 60,000. That  means that 18,000 more nurses must be obtained for the Army alone and the  Navy now requires 2,000 additional nurses.  
1945-74	1945	The present shortage of Army nurses is reflected in undue strain on the  existing force. More than a thousand nurses are now hospitalized, and part  of this is due to overwork. The shortage is also indicated by the fact that  11 Army hospital units have been sent overseas without their complement of  nurses. At Army hospitals in the United States there is only 1 nurse to 26  beds, instead of the recommended 1 to 15 beds.  
1945-75	1945	It is tragic that the gallant women who have volunteered for service as  nurses should be so overworked. It is tragic that our wounded men should  ever want for the best possible nursing care.  
1945-76	1945	The inability to get the needed nurses for the Army is not due to any  shortage of nurses; 280,000 registered nurses are now practicing in this  country. It has been estimated by the War Manpower Commission that 27,000  additional nurses could be made available to the armed forces without  interfering too seriously with the needs of the civilian population for  nurses.  
1945-77	1945	Since volunteering has not produced the number of nurses required, I urge  that the Selective Service Act be amended to provide for the induction of  nurses into the armed forces. The need is too pressing to await the outcome  of further efforts at recruiting.  
1945-78	1945	The care and treatment given to our wounded and sick soldiers have been the  best known to medical science. Those standards must be maintained at all  costs. We cannot tolerate a lowering of them by failure to provide adequate  nursing for the brave men who stand desperately in need of it.  
1945-79	1945	In the continuing progress of this war we have constant need for new types  of weapons, for we cannot afford to fight the war of today or tomorrow with  the weapons of yesterday. For example, the American Army now has developed  a new tank with a gun more powerful than any yet mounted on a fast-moving  vehicle. The Army will need many thousands of these new tanks in 1945.  
1945-80	1945	Almost every month finds some new development in electronics which must be  put into production in order to maintain our technical superiority--and in  order to save lives. We have to work every day to keep ahead of the enemy  in radar. On D-Day, in France, with our superior new equipment, we located  and then put out of operation every warning set which the Germans had along  the French coast.  
1945-81	1945	If we do not keep constantly ahead of our enemies in the development of new  weapons, we pay for our backwardness with the life's blood of our sons.  
1945-82	1945	The only way to meet these increased needs for new weapons and more of them  is for every American engaged in war work to stay on his war job--for  additional American civilians, men and women, not engaged in essential  work, to go out and get a war job. Workers who are released because their  production is cut back should get another job where production is being  increased. This is no time to quit or change to less essential jobs.  
1945-83	1945	There is an old and true saying that the Lord hates a quitter. And this  Nation must pay for all those who leave their essential jobs--or all those  who lay down on their essential jobs for nonessential reasons.  And--again--that payment must be made with the life's blood of our sons.  
1945-84	1945	Many critical production programs with sharply rising needs are now  seriously hampered by manpower shortages. The most important Army needs are  artillery ammunition, cotton duck, bombs, tires, tanks, heavy trucks, and  even B-29's. In each of these vital programs, present production is behind  requirements.  
1945-85	1945	Navy production of bombardment ammunition is hampered by manpower  shortages; so is production for its huge rocket program. Labor shortages  have also delayed its cruiser and carrier programs, and production of  certain types of aircraft.  
1945-86	1945	There is critical need for more repair workers and repair parts; this Jack  delays the return of damaged fighting ships to their places in the fleet,  and prevents ships now in the fighting line from getting needed  overhauling.  
1945-87	1945	The pool of young men under 26 classified as I-A is almost depleted.  Increased replacements for the armed forces will take men now deferred who  are at work in war industry. The armed forces must have an assurance of a  steady flow of young men for replacements. Meeting this paramount need will  be difficult, and will also make it progressively more difficult to attain  the 1945 production goals.  
1945-88	1945	Last year, after much consideration, I recommended that the Congress adopt  a national service act as the most efficient and democratic way of insuring  full production for our war requirements. This recommendation was not  adopted.  
1945-89	1945	I now again call upon the Congress to enact this measure for the total  mobilization of all our human resources for the prosecution of the war. I  urge that this be done at the earliest possible moment.  
1945-90	1945	It is not too late in the war. In fact, bitter experience has shown that in  this kind of mechanized warfare where new weapons are constantly being  created by our enemies and by ourselves, the closer we come to the end of  the war, the more pressing becomes the need for sustained war production  with which to deliver the final blow to the enemy.  
1945-91	1945	There are three basic arguments for a national service law:  
1945-92	1945	First, it would assure that we have the right numbers of workers in the  right places at the right times.  
1945-93	1945	Second, it would provide supreme proof to all our fighting men that we are  giving them what they are entitled to, which is nothing less than our total  effort.  
1945-94	1945	And, third, it would be the final, unequivocal answer to the hopes of the  Nazis and the Japanese that we may become halfhearted about this war and  that they can get from us a negotiated peace.  
1945-95	1945	National service legislation would make it possible to put ourselves in a  position to assure certain and speedy action in meeting our manpower  needs.  
1945-96	1945	It would be used only to the extent absolutely required by military  necessities. In fact, experience in Great Britain and in other Nations at  war indicates that use of the compulsory powers of national service is  necessary only in rare instances.  
1945-97	1945	This proposed legislation would provide against loss of retirement and  seniority rights and benefits. It would not mean reduction in wages.  
1945-98	1945	In adopting such legislation, it is not necessary to discard the voluntary  and cooperative processes which have prevailed up to this time. This  cooperation has already produced great results. The contribution of our  workers to the war effort has been beyond measure. We must build on the  foundations that have already been laid and supplement the measures now in  operation, in order to guarantee the production that may be necessary in  the critical period that lies ahead.  
1945-99	1945	At the present time we are using the inadequate tools at hand to do the  best we can by such expedients as manpower ceilings, and the use of  priority and other powers, to induce men and women to shift from  non-essential to essential war jobs.  
1945-100	1945	I am in receipt of a joint letter from the Secretary of War and the  Secretary of the Navy, dated January 3, 1945, which says:  
1945-101	1945	"With the experience of three years of war and after the most thorough  consideration, we are convinced that it is now necessary to carry out the  statement made by the Congress in the joint resolutions declaring that a  state of war existed with Japan and Germany: That 'to bring the conflict to  a successful conclusion, all of the resources of the country are hereby  pledged by the Congress of the United States.'  
1945-102	1945	"In our considered judgment, which is supported by General Marshall and  Admiral King, this requires total mobilization of our manpower by the  passage of a national war service law. The armed forces need this  legislation to hasten the day of final victory, and to keep to a minimum  the cost in lives.  
1945-103	1945	"National war service, the recognition by law of the duty of every citizen  to do his or her part in winning the war, will give complete assurance that  the need for war equipment will be filled. In the coming year we must  increase the output of many weapons and supplies on short notice. Otherwise  we shall not keep our production abreast of the swiftly changing needs of  war. At the same time it will be necessary to draw progressively many men  now engaged in war production to serve with the armed forces, and their  places in war production must be filled promptly. These developments will  require the addition of hundreds of thousands to those already working in  war industry. We do not believe that these needs can be met effectively  under present methods.  
1945-104	1945	"The record made by management and labor in war industry has been a notable  testimony to the resourcefulness and power of America. The needs are so  great, nevertheless, that in many instances we have been forced to recall  soldiers and sailors from military duty to do work of a civilian character  in war production, because of the urgency of the need for equipment and  because of inability to recruit civilian labor."  
1945-105	1945	Pending action by the Congress on the broader aspects of national service,  I recommend that the Congress immediately enact legislation which will be  effective in using the services of the 4,000,000 men now classified as IV-F  in whatever capacity is best for the war effort.  
1945-106	1945	In the field of foreign policy, we propose to stand together with the  United Nations not for the war alone but for the victory for which the war  is fought.  
1945-107	1945	It is not only a common danger which unites us but a common hope. Ours is  an association not of Governments but of peoples--and the peoples' hope is  peace. Here, as in England; in England, as in Russia; in Russia, as in  China; in France, and through the continent of Europe, and throughout the  world; wherever men love freedom, the hope and purpose of the people are  for peace--a peace that is durable and secure.  
1945-108	1945	It will not be easy to create this peoples' peace. We delude ourselves if  we believe that the surrender of the armies of our enemies will make the  peace we long for. The unconditional surrender of the armies of our enemies  is the first and necessary step--but the first step only.  
1945-109	1945	We have seen already, in areas liberated from the Nazi and the Fascist  tyranny, what problems peace will bring. And we delude ourselves if we  attempt to believe wishfully that all these problems can be solved  overnight.  
1945-110	1945	The firm foundation can be built--and it will be built. But the continuance  and assurance of a living peace must, in the long run, be the work of the  people themselves.  
1945-111	1945	We ourselves, like all peoples who have gone through the difficult  processes of liberation and adjustment, know of our own experience how  great the difficulties can be. We know that they are not difficulties  peculiar to any continent or any Nation. Our own Revolutionary War left  behind it, in the words of one American historian, "an eddy of lawlessness  and disregard of human life." There were separatist movements of one kind  or another in Vermont, Pennsylvania, Virginia, Tennessee, Kentucky, and  Maine. There were insurrections, open or threatened, in Massachusetts and  New Hampshire. These difficulties we worked out for ourselves as the  peoples of the liberated areas of Europe, faced with complex problems of  adjustment, will work out their difficulties for themselves.  
1945-112	1945	Peace can be made and kept only by the united determination of free and  peace-loving peoples who are willing to work together--willing to help one  another--willing to respect and tolerate and try to understand one another's  opinions and feelings.  
1945-113	1945	The nearer we come to vanquishing our enemies the more we inevitably become  conscious of differences among the victors.  
1945-114	1945	We must not let those differences divide us and blind us to our more  important common and continuing interests in winning the war and building  the peace.  
1945-115	1945	International cooperation on which enduring peace must be based is not a  one-way street.  
1945-116	1945	Nations like individuals do not always see alike or think alike, and  international cooperation and progress are not helped by any Nation  assuming that it has a monopoly of wisdom or of virtue.  
1945-117	1945	In the future world the misuse of power, as implied in the term "power  politics," must not be a controlling factor in international relations.  That is the heart of the principles to which we have subscribed. We cannot  deny that power is a factor in world politics any more than we can deny its  existence as a factor in national politics. But in a democratic world, as  in a democratic Nation, power must be linked with responsibility, and  obliged to defend and justify itself within the framework of the general  good.  
1945-118	1945	Perfectionism, no less than isolationism or imperialism or power politics,  may obstruct the paths to international peace. Let us not forget that the  retreat to isolationism a quarter of a century ago was started not by a  direct attack against international cooperation but against the alleged  imperfections of the peace.  
1945-119	1945	In our disillusionment after the last war we preferred international  anarchy to international cooperation with Nations which did not see and  think exactly as we did. We gave up the hope of gradually achieving a  better peace because we had not the courage to fulfill our responsibilities  in an admittedly imperfect world.  
1945-120	1945	We must not let that happen again, or we shall follow the same tragic road  again--the road to a third world war.  
1945-121	1945	We can fulfill our responsibilities for maintaining the security of our own  country only by exercising our power and our influence to achieve the  principles in which we believe and for which we have fought.  
1945-122	1945	In August, 1941, Prime Minister Churchill and I agreed to the principles of  the Atlantic Charter, these being later incorporated into the Declaration  by United Nations of January 1, 1942. At that time certain isolationists  protested vigorously against our right to proclaim the principles--and  against the very principles themselves. Today, many of the same people are  protesting against the possibility of violation of the same principles.  
1945-123	1945	It is true that the statement of principles in the Atlantic Charter does  not provide rules of easy application to each and every one of this  war-torn world's tangled situations. But it is a good and a useful thing--  it is an essential thing--to have principles toward which we can aim.  
1945-124	1945	And we shall not hesitate to use our influence--and to use it now--to secure  so far as is humanly possible the fulfillment of the principles of the  Atlantic Charter. We have not shrunk from the military responsibilities  brought on by this war. We cannot and will not shrink from the political  responsibilities which follow in the wake of battle.  
1945-125	1945	I do not wish to give the impression that all mistakes can be avoided and  that many disappointments are not inevitable in the making of peace. But we  must not this time lose the hope of establishing an international order  which will be capable of maintaining peace and realizing through the years  more perfect justice between Nations.  
1945-126	1945	To do this we must be on our guard not to exploit and exaggerate the  differences between us and our allies, particularly with reference to the  peoples who have been liberated from Fascist tyranny. That is not the way  to secure a better settlement of those differences or to secure  international machinery which can rectify mistakes which may be made.  
1945-127	1945	I should not be frank if I did not admit concern about many situations--the  Greek and Polish for example. But those situations are not as easy or as  simple to deal with as some spokesmen, whose sincerity I do not question,  would have us believe. We have obligations, not necessarily legal, to the  exiled Governments, to the underground leaders, and to our major allies who  came much nearer the shadows than we did.  
1945-128	1945	We and our allies have declared that it is our purpose to respect the right  of all peoples to choose the form of government under which they will live  and to see sovereign rights and self-government restored to those who have  been forcibly deprived of them. But with internal dissension, with many  citizens of liberated countries still prisoners of war or forced to labor  in Germany, it is difficult to guess the kind of self-government the people  really want.  
1945-129	1945	During the interim period, until conditions permit a genuine expression of  the people's will, we and our allies have a duty, which we cannot ignore,  to use our influence to the end that no temporary or provisional  authorities in the liberated countries block the eventual exercise of the  peoples' right freely to choose the government and institutions under  which, as freemen, they are to live.  
1945-130	1945	It is only too easy for all of us to rationalize what we want to believe,  and to consider those leaders we like responsible and those we dislike  irresponsible. And our task is not helped by stubborn partisanship, however  understandable on the part of opposed internal factions.  
1945-131	1945	It is our purpose to help the peace-loving peoples of Europe to live  together as good neighbors, to recognize their common interests and not to  nurse their traditional grievances against one another.  
1945-132	1945	But we must not permit the many specific and immediate problems of  adjustment connected with the liberation of Europe to delay the  establishment of permanent machinery for the maintenance of peace. Under  the threat of a common danger, the United Nations joined together in war to  preserve their independence and their freedom. They must now join together  to make secure the independence and freedom of all peace-loving states, so  that never again shall tyranny be able to divide and conquer.  
1945-133	1945	International peace and well-being, like national peace and well-being,  require constant alertness, continuing cooperation, and organized effort.  
1945-134	1945	International peace and well-being, like national peace and well-being, can  be secured only through institutions capable of life and growth.  
1945-135	1945	Many of the problems of the peace are upon us even now while the conclusion  of the war is still before us. The atmosphere of friendship and mutual  understanding and determination to find a common ground of common  understanding, which surrounded the conversations at Dumbarton Oaks, gives  us reason to hope that future discussions will succeed in developing the  democratic and fully integrated world security system toward which these  preparatory conversations were directed.  
1945-136	1945	We and the other United Nations are going forward, with vigor and  resolution, in our efforts to create such a system by providing for it  strong and flexible institutions of joint and cooperative action.  
1945-137	1945	The aroused conscience of humanity will not permit failure in this supreme  endeavor.  
1945-138	1945	We believe that the extraordinary advances in the means of  intercommunication between peoples over the past generation offer a  practical method of advancing the mutual understanding upon which peace and  the institutions of peace must rest, and it is our policy and purpose to  use these great technological achievements for the common advantage of the  world.  
1945-139	1945	We support the greatest possible freedom of trade and commerce.  
1945-140	1945	We Americans have always believed in freedom of opportunity, and equality  of opportunity remains one of the principal objectives of our national  life. What we believe in for individuals, we believe in also for Nations.  We are opposed to restrictions, whether by public act or private  arrangement, which distort and impair commerce, transit, and trade.  
1945-141	1945	We have house-cleaning of our own to do in this regard. But it is our hope,  not only in the interest of our own prosperity but in the interest of the  prosperity of the world, that trade and commerce and access to materials  and markets may be freer after this war than ever before in the history of  the world.  
1945-142	1945	One of the most heartening events of the year in the international field  has been the renaissance of the French people and the return of the French  Nation to the ranks of the United Nations. Far from having been crushed by  the terror of Nazi domination, the French people have emerged with stronger  faith than ever in the destiny of their country and in the soundness of the  democratic ideals to which the French Nation has traditionally contributed  so greatly.  
1945-143	1945	During her liberation, France has given proof of her unceasing  determination to fight the Germans, continuing the heroic efforts of the  resistance groups under the occupation and of all those Frenchmen  throughout the world who refused to surrender after the disaster of 1940.  
1945-144	1945	Today, French armies are again on the German frontier, and are again  fighting shoulder to shoulder with our sons.  
1945-145	1945	Since our landings in Africa, we have placed in French hands all the arms  and material of war which our resources and the military situation  permitted. And I am glad to say that we are now about to equip large new  French forces with the most modern weapons for combat duty.  
1945-146	1945	In addition to the contribution which France can make to our common  victory, her liberation likewise means that her great influence will again  be available in meeting the problems of peace.  
1945-147	1945	We fully recognize France's vital interest in a lasting solution of the  German problem and the contribution which she can make in achieving  international security. Her formal adherence to the declaration by United  Nations a few days ago and the proposal at the Dumbarton Oaks discussions,  whereby France would receive one of the five permanent seats in the  proposed Security Council, demonstrate the extent to which France has  resumed her proper position of strength and leadership.  
1945-148	1945	I am clear in my own mind that, as an essential factor in the maintenance  of peace in the future, we must have universal military training after this  war, and I shall send a special message to the Congress on this subject.  
1945-149	1945	An enduring peace cannot be achieved without a strong America--strong in  the social and economic sense as well as in the military sense.  
1945-150	1945	In the State of the Union message last year I set forth what I considered  to be an American economic bill of rights.  
1945-151	1945	I said then, and I say now, that these economic truths represent a second  bill of rights under which a new basis of security and prosperity can be  established for all--regardless of station, race, or creed.  
1945-152	1945	Of these rights the most fundamental, and one on which the fulfillment of  the others in large degree depends, is the "right to a useful and  remunerative job in the industries or shops or farms or mines of the  Nation." In turn, others of the economic rights of American citizenship,  such as the right to a decent home, to a good education, to good medical  care, to social security, to reasonable farm income, will, if fulfilled,  make major contributions to achieving adequate levels of employment.  
1945-153	1945	The Federal Government must see to it that these rights become  realities--with the help of States, municipalities, business, labor, and  agriculture.  
1945-154	1945	We have had full employment during the war. We have had it because the  Government has been ready to buy all the materials of war which the country  could produce--and this has amounted to approximately half our present  productive capacity.  
1945-155	1945	After the war we must maintain full employment with Government performing  its peacetime functions. This means that we must achieve a level of demand  and purchasing power by private consumers--farmers, businessmen, workers,  professional men, housewives--which is sufficiently high to replace wartime  Government demands; and it means also that we must greatly increase our  export trade above the prewar level.  
1945-156	1945	Our policy is, of course, to rely as much as possible on private enterprise  to provide jobs. But the American people will not accept mass unemployment  or mere makeshift work. There will be need for the work of everyone willing  and able to work--and that means close to 60,000,000 jobs.  
1945-157	1945	Full employment means not only jobs--but productive jobs. Americans do not  regard jobs that pay substandard wages as productive jobs.  
1945-158	1945	We must make sure that private enterprise works as it is supposed to work--  on the basis of initiative and vigorous competition, without the stifling  presence of monopolies and cartels.  
1945-159	1945	During the war we have guaranteed investment in enterprise essential to the  war effort. We should also take appropriate measures in peacetime to secure  opportunities for new small enterprises and for productive business  expansion for which finance would otherwise be unavailable.  
1945-160	1945	This necessary expansion of our peacetime productive capacity will require  new facilities, new plants, and new equipment.  
1945-161	1945	It will require large outlays of money which should be raised through  normal investment channels. But while private capital should finance this  expansion program, the Government should recognize its responsibility for  sharing part of any special or abnormal risk of loss attached to such  financing.  
1945-162	1945	Our full-employment program requires the extensive development of our  natural resources and other useful public works. The undeveloped resources  of this continent are still vast. Our river-watershed projects will add new  and fertile territories to the United States. The Tennessee Valley  Authority, which was constructed at a cost of $750,000,000--the cost of  waging this war for less than 4 days--was a bargain. We have similar  opportunities in our other great river basins. By harnessing the resources  of these river basins, as we have in the Tennessee Valley, we shall provide  the same kind of stimulus to enterprise as was provided by the Louisiana  Purchase and the new discoveries in the West during the nineteenth  century.  
1945-163	1945	If we are to avail ourselves fully of the benefits of civil aviation, and  if we are to use the automobiles we can produce, it will be necessary to  construct thousands of airports and to overhaul our entire national highway  system.  
1945-164	1945	The provision of a decent home for every family is a national necessity, if  this country is to be worthy of its greatness--and that task will itself  create great employment opportunities. Most of our cities need extensive  rebuilding. Much of our farm plant is in a state of disrepair. To make a  frontal attack on the problems of housing and urban reconstruction will  require thoroughgoing cooperation between industry and labor, and the  Federal, State, and local Governments.  
1945-165	1945	An expanded social security program, and adequate health and education  programs, must play essential roles in a program designed to support  individual productivity and mass purchasing power. I shall communicate  further with the Congress on these subjects at a later date.  
1945-166	1945	The millions of productive jobs that a program of this nature could bring  are jobs in private enterprise. They are jobs based on the expanded demand  for the output of our economy for consumption and investment. Through a  program of this character we can maintain a national income high enough to  provide for an orderly retirement of the public debt along with reasonable  tax reduction.  
1945-167	1945	Our present tax system geared primarily to war requirements must be revised  for peacetime so as to encourage private demand.  
1945-168	1945	While no general revision of the tax structure can be made until the war  ends on all fronts, the Congress should be prepared to provide tax  modifications at the end of the war in Europe, designed to encourage  capital to invest in new enterprises and to provide jobs. As an integral  part of this program to maintain high employment, we must, after the war is  over, reduce or eliminate taxes which bear too heavily on consumption.  
1945-169	1945	The war will leave deep disturbances in the world economy, in our national  economy, in many communities, in many families, and in many individuals. It  will require determined effort and responsible action of all of us to find  our way back to peacetime, and to help others to find their way back to  peacetime--a peacetime that holds the values of the past and the promise of  the future.  
1945-170	1945	If we attack our problems with determination we shall succeed. And we must  succeed. For freedom and peace cannot exist without security.  
1945-171	1945	During the past year the American people, in a national election,  reasserted their democratic faith.  
1945-172	1945	In the course of that campaign various references were made to "strife"  between this Administration and the Congress, with the implication, if not  the direct assertion, that this Administration and the Congress could never  work together harmoniously in the service of the Nation.  
1945-173	1945	It cannot be denied that there have been disagreements between the  legislative and executive branches--as there have been disagreements during  the past century and a half.  
1945-174	1945	I think we all realize too that there are some people in this Capital City  whose task is in large part to stir up dissension, and to magnify normal  healthy disagreements so that they appear to be irreconcilable conflicts.  
1945-175	1945	But--I think that the over-all record in this respect is eloquent: The  Government of the United States of America--all branches of it--has a good  record of achievement in this war.  
1945-176	1945	The Congress, the Executive, and the Judiciary have worked together for the  common good.  
1945-177	1945	I myself want to tell you, the Members of the Senate and of the House of  Representatives, how happy I am in our relationships and friendships. I  have not yet had the pleasure of meeting some of the new Members in each  House, but I hope that opportunity will offer itself in the near future.  
1945-178	1945	We have a great many problems ahead of us and we must approach them with  realism and courage.  
1945-179	1945	This new year of 1945 can be the greatest year of achievement in human  history.  
1945-180	1945	Nineteen forty-five can see the final ending of the Nazi-Fascist reign of  terror in Europe.  
1945-181	1945	Nineteen forty-five can see the closing in of the forces of retribution  about the center of the malignant power of imperialistic Japan.  
1945-182	1945	Most important of all--1945 can and must see the substantial beginning of  the organization of world peace. This organization must be the fulfillment  of the promise for which men have fought and died in this war. It must be  the justification of all the sacrifices that have been made--of all the  dreadful misery that this world has endured.  
1945-183	1945	We Americans of today, together with our allies, are making history--and I  hope it will be better history than ever has been made before.  
1945-184	1945	We pray that we may be worthy of the unlimited opportunities that God has  given us.  
1946-1	1946	To the Congress of the United States:  
1946-2	1946	A quarter century ago the Congress decided that it could no longer consider  the financial programs of the various departments on a piecemeal basis.  Instead it has called on the President to present a comprehensive Executive  Budget. The Congress has shown its satisfaction with that method by  extending the budget system and tightening its controls. The bigger and  more complex the Federal Program, the more necessary it is for the Chief  Executive to submit a single budget for action by the Congress.  
1946-3	1946	At the same time, it is clear that the budgetary program and the general  program of the Government are actually inseparable. The president bears the  responsibility for recommending to the Congress a comprehensive set of  proposals on all Government activities and their financing. In formulating  policies, as in preparing budgetary estimates, the Nation and the Congress  have the right to expect the President to adjust and coordinate the views  of the various departments and agencies to form a unified program. And that  program requires consideration in connection with the Budget, which is the  annual work program of the Government.  
1946-4	1946	Since our programs for this period which combines war liquidation with  reconversion to a peacetime economy are inevitably large and numerous it is  imperative that they be planned and executed with the utmost efficiency and  the utmost economy. We have cut the war program to the maximum extent  consistent with national security. We have held our peacetime programs to  the level necessary to our national well-being and the attainment of our  postwar objectives. Where increased programs have been recommended, the  increases have been held as low as is consistent with these goals. I can  assure the Congress of the necessity of these programs. I can further  assure the Congress that the program as a whole is well within our capacity  to finance it. All the programs I have recommended for action are included  in the Budget figures.  
1946-5	1946	For these reasons I have chosen to combine the customary Message on the  State of the Union with the annual Budget Message, and to include in the  Budget not only estimates for functions authorized by the Congress, but  also for those which I recommend for its action.  
1946-6	1946	I am also transmitting herewith the Fifth Quarterly Report of the Director  of War Mobilization and Reconversion.[1] It is a comprehensive discussion of  the present state of the reconversion program and of the immediate and  long-range needs and recommendations.  
1946-7	1946	[Footnote 1: The report dated January 1, 1946, and entitled "Battle for  Production" is printed in House Document 398 (79th Cong., 2d sess.).]  
1946-8	1946	This constitutes, then, as complete a report as I find it possible to  prepare now. It constitutes a program of government in relation to the  Nation's needs.  
1946-9	1946	With the growing responsibility of modern government to foster economic  expansion and to promote conditions that assure full and steady employment  opportunities, it has become necessary to formulate and determine the  Government program in the light of national economic conditions as a whole.  In both the executive and the legislative branches we must make  arrangements which will permit us to formulate the Government program in  that light. Such an approach has become imperative if the American  political and economic system is to succeed under the conditions of  economic instability and uncertainty which we have to face. The Government  needs to assure business, labor, and agriculture that Government policies  will take due account of the requirements of a full employment economy. The  lack of that assurance would, I believe, aggravate the economic  instability.  
1946-10	1946	With the passage of a full employment bill which I confidently anticipate  for the very near future, the executive and legislative branches of  government will be empowered to devote their best talents and resources in  subsequent years to preparing and acting on such a program.  
1946-11	1946	I. FROM WAR TO PEACE--THE YEAR  
1946-12	1946	OF DECISION  
1946-13	1946	In his last Message on the State of the Union, delivered one year ago,  President Roosevelt said:  
1946-14	1946	"This new year of 1945 can be the greatest year of achievement in human  history.  
1946-15	1946	"1945 can see the final ending of the Nazi-Fascist reign of terror in  Europe.  
1946-16	1946	"1945 can see the closing in of the forces of retribution about the center  of the malignant power of imperialistic Japan.  
1946-17	1946	"Most important of all--1945 can and must see the substantial beginning of  the organization of world peace."  
1946-18	1946	All those hopes, and more, were fulfilled in the year 1945. It was the  greatest year of achievement in human history. It saw the end of the  Nazi-Fascist terror in Europe, and also the end of the malignant power of  Japan. And it saw the substantial beginning of world organization for  peace. These momentous events became realities because of the steadfast  purpose of the United Nations and of the forces that fought for freedom  under their flags. The plain fact is that civilization was saved in 1945 by  the United Nations.  
1946-19	1946	Our own part in this accomplishment was not the product of any single  service. Those who fought on land, those who fought on the sea, and those  who fought in the air deserve equal credit. They were supported by other  millions in the armed forces who through no fault of their own could not go  overseas and who rendered indispensable service in this country. They were  supported by millions in all levels of government, including many  volunteers, whose devoted public service furnished basic organization and  leadership. They were also supported by the millions of Americans in  private life--men and women in industry, in commerce, on the farms, and in  all manner of activity on the home front--who contributed their brains and  their brawn in arming, equipping, and feeding them. The country was brought  through four years of peril by an effort that was truly national in  character.  
1946-20	1946	Everlasting tribute and gratitude will be paid by all Americans to those  brave men who did not come back, who will never come back--the 330,000 who  died that the Nation might live and progress. All Americans will also  remain deeply conscious of the obligation owed to that larger number of  soldiers, sailors, and marines who suffered wounds and sickness in their  service. They may be certain that their sacrifice will never be forgotten  or their needs neglected.  
1946-21	1946	The beginning of the year 1946 finds the United States strong and  deservedly confident. We have a record of enormous achievements as a  democratic society in solving problems and meeting opportunities as they  developed. We find ourselves possessed of immeasurable advantages--vast and  varied natural resources; great plants, institutions, and other facilities;  unsurpassed technological and managerial skills; an alert, resourceful, and  able citizenry. We have in the United States Government rich resources in  information, perspective, and facilities for doing whatever may be found  necessary to do in giving support and form to the widespread and  diversified efforts of all our people.  
1946-22	1946	And for the immediate future the business prospects are generally so  favorable that there is danger of such feverish and opportunistic activity  that our grave postwar problems may be neglected. We need to act now with  full regard for pitfalls; we need to act with foresight and balance. We  should not be lulled by the immediate alluring prospects into forgetting  the fundamental complexity of modern affairs, the catastrophe that can come  in this complexity, or the values that can be wrested from it.  
1946-23	1946	But the long-range difficulties we face should no more lead to despair than  our immediate business prospects should lead to the optimism which comes  from the present short-range prospect. On the foundation of our victory we  can build a lasting peace, with greater freedom and security for mankind in  our country and throughout the world. We will more certainly do this if we  are constantly aware of the fact that we face crucial issues and prepare  now to meet them.  
1946-24	1946	To achieve success will require both boldness in setting our sights and  caution in steering our way on an uncharted course. But we have no luxury  of choice. We must move ahead. No return to the past is possible.  
1946-25	1946	Our Nation has always been a land of great opportunities for those people  of the world who sought to become part of us. Now we have become a land of  great responsibilities to all the people of all the world. We must squarely  recognize and face the fact of those responsibilities. Advances in science,  in communication, in transportation, have compressed the world into a  community. The economic and political health of each member of the world  community bears directly on the economic and political health of each other  member.  
1946-26	1946	The evolution of centuries has brought us to a new era in world history in  which manifold relationships between nations must be formalized and  developed in new and intricate ways.  
1946-27	1946	The United Nations Organization now being established represents a minimum  essential beginning. It must be developed rapidly and steadily. Its work  must be amplified to fill in the whole pattern that has been outlined.  Economic collaboration, for example, already charted, now must be carried  on as carefully and as comprehensively as the political and security  measures.  
1946-28	1946	It is important that the nations come together as States in the Assembly  and in the Security Council and in the other specialized assemblies and  councils that have been and will be arranged. But this is not enough. Our  ultimate security requires more than a process of consultation and  compromise.  
1946-29	1946	It requires that we begin now to develop the United Nations Organization as  the representative of the world as one society. The United Nations  Organization, if we have the will adequately to staff it and to make it  work as it should, will provide a great voice to speak constantly and  responsibly in terms of world collaboration and world well-being.  
1946-30	1946	There are many new responsibilities for us as we enter into this new  international era. The whole power and will and wisdom of our Government  and of our people should be focused to contribute to and to influence  international action. It is intricate, continuing business. Many  concessions and adjustments will be required.  
1946-31	1946	The spectacular progress of science in recent years makes these necessities  more vivid and urgent. That progress has speeded internal development and  has changed world relationships so fast that we must realize the fact of a  new era. It is an era in which affairs have become complex and rich in  promise. Delicate and intricate relationships, involving us all in  countless ways, must be carefully considered.  
1946-32	1946	On the domestic scene, as well as on the international scene, we must lay a  new and better foundation for cooperation. We face a great peacetime  venture; the challenging venture of a free enterprise economy making full  and effective use of its rich resources and technical advances. This is a  venture in which business, agriculture, and labor have vastly greater  opportunities than heretofore. But they all also have vastly greater  responsibilities. We will not measure up to those responsibilities by the  simple return to "normalcy" that was tried after the last war.  
1946-33	1946	The general objective, on the contrary, is to move forward to find the way  in time of peace to the full utilization and development of our physical  and human resources that were demonstrated so effectively in the war.  
1946-34	1946	To accomplish this, it is not intended that the Federal Government should  do things that can be done as well for the Nation by private enterprise, or  by State and local governments. On the contrary, the war has demonstrated  how effectively we can organize our productive system and develop the  potential abilities of our people by aiding the efforts of private  enterprise.  
1946-35	1946	As we move toward one common objective there will be many and urgent  problems to meet.  
1946-36	1946	Industrial peace between management and labor will have to be  achieved--through the process of collective bargaining--with Government  assistance but not Government compulsion. This is a problem which is the  concern not only of management, labor, and the Government, but also the  concern of every one of us.  
1946-37	1946	Private capital and private management are entitled to adequate reward for  efficiency, but business must recognize that its reward results from the  employment of the resources of the Nation. Business is a public trust and  must adhere to national standards in the conduct of its affairs. These  standards include as a minimum the establishment of fair wages and fair  employment practices.  
1946-38	1946	Labor also has its own new peacetime responsibilities. Under our collective  bargaining system, which must become progressively more secure, labor  attains increasing political as well as economic power, and this, as with  all power, means increased responsibility.  
1946-39	1946	The lives of millions of veterans and war workers will be greatly affected  by the success or failure of our program of war liquidation and  reconversion. Their transition to peacetime pursuits will be determined by  our efforts to break the bottlenecks in key items of production, to make  surplus property immediately available where it is needed, to maintain an  effective national employment service, and many other reconversion  policies. Our obligations to the people who won the war will not be paid if  we fail to prevent inflation and to maintain employment opportunities.  
1946-40	1946	While our peacetime prosperity will be based on the private enterprise the  government can and must assist in many ways. It is the Government's  responsibility to see that our economic system remains competitive, that  new businesses have adequate opportunities, and that our national resources  are restored and improved. Government must realize the effect of its  operations on the whole economy. It is the responsibility of Government to  gear its total program to the achievement of full production and full  employment.  
1946-41	1946	Our basic objective--toward which all others lead--is to improve the  welfare of the American people. In addition to economic prosperity, this  means that we use social security in the fullest sense of the word. And  people must be protected from excessive want during old age, sickness, and  unemployment. Opportunities for a good economy and adequate medical care  must be readily available. Every family should build a decent home. The new  economic rights to which I have referred on previous occasions is a charter  of economic freedom which seeks to assure that all who will may work toward  their own security and the general advancement; that we become a  well-housed people, a well-nourished people, an educated people, a people  socially and economically secure, an alert and responsible people.  
1946-42	1946	These and other problems which may face us can be met by the cooperation of  all of us in furthering a positive and well-balanced Government program--a  program which will further national and international well-being.  
1946-43	1946	II. THE FEDERAL PROGRAM  
1946-44	1946	INTERNATIONAL AFFAIRS  
1946-45	1946	I. FOREIGN POLICY  
1946-46	1946	The year 1945 brought with it the final defeat of our enemies. There lies  before us now the work of building a just and enduring peace.  
1946-47	1946	Our most immediate task toward that end is to deprive our enemies  completely and forever of their power to start another war. Of even greater  importance to the preservation of international peace is the need to  preserve the wartime agreement of the United Nations and to direct it into  the ways of peace.  
1946-48	1946	Long before our enemies surrendered, the foundations had been laid on which  to continue this unity in the peace to come. The Atlantic meeting in 1941  and the conferences at Casablanca, Quebec, Moscow, Cairo, Tehran, and  Dumbarton Oaks each added a stone to the structure.  
1946-49	1946	Early in 1945, at Yalta, the three major powers broadened and solidified  this base of understanding. There fundamental decisions were reached  concerning the occupation and control of Germany. There also a formula was  arrived at for the interim government of the areas in Europe which were  rapidly being wrested from Nazi control. This formula was based on the  policy of the United States that people be permitted to choose their own  form of government by their own freely expressed choice without  interference from any foreign source.  
1946-50	1946	At Potsdam, in July 1945, Marshal Stalin, Prime Ministers Churchill and  Attlee, and I met to exchange views primarily with respect to Germany. As a  result, agreements were reached which outlined broadly the policy to be  executed by the Allied Control Council. At Potsdam there was also  established a Council of Foreign Ministers which convened for the first  time in London in September. The Council is about to resume its primary  assignment of drawing up treaties of peace with Italy, Rumania, Bulgaria,  Hungary, and Finland.  
1946-51	1946	In addition to these meetings, and, in accordance with the agreement at  Yalta, the Foreign Ministers of Great Britain, the Soviet Union, and the  United States conferred together in San Francisco last spring, in Potsdam  in July, in London in September, and in Moscow in December. These meetings  have been useful in promoting understanding and agreement among the three  governments.  
1946-52	1946	Simply to name all the international meetings and conferences is to suggest  the size and complexity of the undertaking to prevent international war in  which the United States has now enlisted for the duration of history.  
1946-53	1946	It is encouraging to know that the common effort of the United Nations to  learn to live together did not cease with the surrender of our enemies.  
1946-54	1946	When difficulties arise among us, the United States does not propose to  remove them by sacrificing its ideals or its vital interests. Neither do we  propose, however, to ignore the ideals and vital interests of our friends.  
1946-55	1946	Last February and March an Inter-American Conference on Problems of War and  Peace was held in Mexico City. Among the many significant accomplishments  of that Conference was an understanding that an attack by any country  against any one of the sovereign American republics would be considered an  act of aggression against all of them; and that if such an attack were made  or threatened, the American republics would decide jointly, through  consultations in which each republic has equal representation, what  measures they would take for their mutual protection. This agreement  stipulates that its execution shall be in full accord with the Charter of  the United Nations Organization.  
1946-56	1946	The first meeting of the General Assembly of the United Nations now in  progress in London marks the real beginning of our bold adventure toward  the preservation of world peace, to which is bound the dearest hope of  men.  
1946-57	1946	We have solemnly dedicated ourselves and all our will to the success of the  United Nations Organization. For this reason we have sought to insure that  in the peacemaking the smaller nations shall have a voice as well as the  larger states. The agreement reached at Moscow last month preserves this  opportunity in the making of peace with Italy, Rumania, Bulgaria, Hungary,  and Finland. The United States intends to preserve it when the treaties  with Germany and Japan are drawn.  
1946-58	1946	It will be the continuing policy of the United States to use all its  influence to foster, support, and develop the United Nations Organization  in its purpose of preventing international war. If peace is to endure it  must rest upon justice no less than upon power. The question is how justice  among nations is best achieved. We know from day-to-day experience that the  chance for a just solution is immeasurably increased when everyone directly  interested is given a voice. That does not mean that each must enjoy an  equal voice, but it does mean that each must be heard.  
1946-59	1946	Last November, Prime Minister Attlee, Prime Minister MacKenzie King, and I  announced our proposal that a commission be established within the  framework of the United Nations to explore the problems of effective  international control of atomic energy.  
1946-60	1946	The Soviet Union, France, and China have joined us in the purpose of  introducing in the General Assembly a resolution for the establishment of  such a commission. Our earnest wish is that the work of this commission go  forward carefully and thoroughly, but with the greatest dispatch. I have  great hope for the development of mutually effective safeguards which will  permit the fullest international control of this new atomic force.  
1946-61	1946	I believe it possible that effective means can be developed through the  United Nations Organization to prohibit, outlaw, and prevent the use of  atomic energy for destructive purposes.  
1946-62	1946	The power which the United States demonstrated during the war is the fact  that underlies every phase of our relations with other countries. We cannot  escape the responsibility which it thrusts upon us. What we think, plan,  say, and do is of profound significance to the future of every corner of  the world.  
1946-63	1946	The great and dominant objective of United States foreign policy is to  build and preserve a just peace. The peace we seek is not peace for twenty  years. It is permanent peace. At a time when massive changes are occurring  with lightning speed throughout the world, it is often difficult to  perceive how this central objective is best served in one isolated complex  situation or another. Despite this very real difficulty, there are certain  basic propositions to which the United States adheres and to which we shall  continue to adhere.  
1946-64	1946	One proposition is that lasting peace requires genuine understanding and  active cooperation among the most powerful nations. Another is that even  the support of the strongest nations cannot guarantee a peace unless it is  infused with the quality of justice for all nations.  
1946-65	1946	On October 27, 1945, I made, in New York City, the following public  statement of my understanding of the fundamental foreign policy of the  United States. I believe that policy to be in accord with the opinion of  the Congress and of the people of the United States. I believe that that  policy carries out our fundamental objectives.  
1946-66	1946	1. We seek no territorial expansion or selfish advantage. We have no plans  for aggression against any other state, large or small. We have no  objective which need clash with the peaceful aims of any other nation.  
1946-67	1946	2. We believe in the eventual return of sovereign rights and  self-government to all peoples who have been deprived of them by force.  
1946-68	1946	3. We shall approve no territorial changes in any friendly part of the  world unless they accord with the freely expressed wishes of the people  concerned.  
1946-69	1946	4. We believe that all peoples who are prepared for self-government should  be permitted to choose their own form of government by their own freely  expressed choice, without interference from any foreign source. That is  true in Europe, in Asia, in Africa, as well as in the Western Hemisphere.  
1946-70	1946	5. By the combined and cooperative action of our war allies, we shall help  the defeated enemy states establish peaceful democratic governments of  their own free choice. And we shall try to attain a world in which nazism,  fascism, and military aggression cannot exist.  
1946-71	1946	6. We shall refuse to recognize any government imposed upon any nation by  the force of any foreign power. In some cases it may be impossible to  prevent forceful imposition of such a government. But the United States  will not recognize any such government.  
1946-72	1946	7. We believe that all nations should have the freedom of the seas and  equal rights to the navigation of boundary rivers and waterways and of  rivers and waterways which pass through more than one country.  
1946-73	1946	8. We believe that all states which are accepted in the society of nations  should have access on equal terms to the trade and the raw materials of the  world.  
1946-74	1946	9. We believe that the sovereign states of the Western Hemisphere, without  interference from outside the Western Hemisphere, must work together as  good neighbors in the solution of their common problems.  
1946-75	1946	10. We believe that full economic collaboration between all nations, great  and small, is essential to the improvement of living conditions all over  the world, and to the establishment of freedom from fear and freedom from  want.  
1946-76	1946	11. We shall continue to strive to promote freedom of expression and  freedom of religion throughout the peace-loving areas of the world.  
1946-77	1946	12. We are convinced that the preservation of peace between nations  requires a United Nations Organization composed of all the peace-loving  nations of the world who are willing jointly to use force, if necessary, to  insure peace.  
1946-78	1946	That is our foreign policy.  
1946-79	1946	We may not always fully succeed in our objectives. There may be instances  where the attainment of those objectives is delayed. But we will not give  our full sanction and approval to actions which fly in the face of these  ideals.  
1946-80	1946	The world has a great stake in the political and economic future of  Germany. The Allied Control Council has now been in operation there for a  substantial period of time. It has not met with unqualified success. The  accommodation of varying views of four governments in the day-to-day civil  administration of occupied territory is a challenging task. In my judgment,  however, the Council has made encouraging progress in the face of most  serious difficulties. It is my purpose at the earliest practicable date to  transfer from military to civilian personnel the execution of United States  participation in the government of occupied territory in Europe. We are  determined that effective control shall be maintained in Germany until we  are satisfied that the German people have regained the right to a place of  honor and respect.  
1946-81	1946	On the other side of the world, a method of international cooperation has  recently been agreed upon for the treatment of Japan. In this pattern of  control, the United States, with the full approval of its partners, has  retained primary authority and primary responsibility. It will continue to  do so until the Japanese people, by their own freely expressed choice,  choose their own form of government.  
1946-82	1946	Our basic policy in the Far East is to encourage the development of a  strong, independent, united, and democratic China. That has been the  traditional policy of the United States.  
1946-83	1946	At Moscow the United States, the Union of Soviet Socialist Republics, and  Great Britain agreed to further this development by supporting the efforts  of the national government and nongovernmental Chinese political elements  in bringing about cessation of civil strife and in broadening the basis of  representation in the Government. That is the policy which General Marshall  is so ably executing today.  
1946-84	1946	It is the purpose of the Government of the United States to proceed as  rapidly as is practicable toward the restoration of the sovereignty of  Korea and the establishment of a democratic government by the free choice  of the people of Korea.  
1946-85	1946	At the threshold of every problem which confronts us today in international  affairs is the appalling devastation, hunger, sickness, and pervasive human  misery that mark so many areas of the world.  
1946-86	1946	By joining and participating in the work of the United Nations Relief and  Rehabilitation Administration the United States has directly recognized and  assumed an obligation to give such relief assistance as is practicable to  millions of innocent and helpless victims of the war. The Congress has  earned the gratitude of the world by generous financial contributions to  the United Nations Relief and Rehabilitation Administration.  
1946-87	1946	We have taken the lead, modest though it is, in facilitating under our  existing immigration quotas the admission to the United States of refugees  and displaced persons from Europe.  
1946-88	1946	We have joined with Great Britain in the organization of a commission to  study the problem of Palestine. The Commission is already at work and its  recommendations will be made at an early date.  
1946-89	1946	The members of the United Nations have paid us the high compliment of  choosing the United States as the site of the United Nations headquarters.  We shall be host in spirit as well as in fact, for nowhere does there abide  a fiercer determination that this peace shall live than in the hearts of  the American people.  
1946-90	1946	It is the hope of all Americans that in time future historians will speak  not of World War I and World War II, but of the first and last world wars.  
1946-91	1946	2. FOREIGN ECONOMIC POLICY  
1946-92	1946	The foreign economic policy of the United States is designed to promote our  own prosperity, and at the same time to aid in the restoration and  expansion of world markets and to contribute thereby to world peace and  world security. We shall continue our efforts to provide relief from the  devastation of war, to alleviate the sufferings of displaced persons, to  assist in reconstruction and development, and to promote the expansion of  world trade.  
1946-93	1946	We have already joined the International Monetary Fund and the  International Bank for Reconstruction and Development. We have expanded the  Export-Import Bank and provided it with additional capital. The Congress  has renewed the Trade Agreements Act which provides the necessary framework  within which to negotiate a reduction of trade barriers on a reciprocal  basis. It has given our support to the United Nations Relief and  Rehabilitation Administration.  
1946-94	1946	In accordance with the intentions of the Congress, lend-lease, except as to  continuing military lend-lease in China, was terminated upon the surrender  of Japan. The first of the lend-lease settlement agreements has been  completed with the United Kingdom. Negotiations with other lend-lease  countries are in progress. In negotiating these agreements, we intend to  seek settlements which will not encumber world trade through war debts of a  character that proved to be so detrimental to the stability of the world  economy after the last war.  
1946-95	1946	We have taken steps to dispose of the goods which on VJ-day were in the  lend-lease pipe line to the various lend-lease countries and to allow them  long-term credit for the purpose where necessary. We are also making  arrangements under which those countries may use the lend-lease inventories  in their possession and acquire surplus property abroad to assist in their  economic rehabilitation and reconstruction. These goods will be accounted  for at fair values.  
1946-96	1946	The proposed loan to the United Kingdom, which I shall recommend to the  Congress in a separate message, will contribute to easing the transition  problem of one of our major partners in the war. It will enable the whole  sterling area and other countries affiliated with it to resume trade on a  multilateral basis. Extension of this credit will enable the United Kingdom  to avoid discriminatory trade arrangements of the type which destroyed  freedom of trade during the 1930's. I consider the progress toward  multilateral trade which will be achieved by this agreement to be in itself  sufficient warrant for the credit.  
1946-97	1946	The view of this Government is that, in the longer run, our economic  prosperity and the prosperity of the whole world are best served by the  elimination of artificial barriers to international trade, whether in the  form of unreasonable tariffs or tariff preferences or commercial quotas or  embargoes or the restrictive practices of cartels.  
1946-98	1946	The United States Government has issued proposals for the expansion of  world trade and employment to which the Government of the United Kingdom  has given its support on every important issue. These proposals are  intended to form the basis for a trade and employment conference to be held  in the middle of this year. If that conference is a success, I feel  confident that the way will have been adequately prepared for an expanded  and prosperous world trade.  
1946-99	1946	We shall also continue negotiations looking to the full and equitable  development of facilities for transportation and communications among  nations.  
1946-100	1946	The vast majority of the nations of the world have chosen to work together  to achieve, on a cooperative basis, world security and world prosperity.  The effort cannot succeed without full cooperation of the United States. To  play our part, we must not only resolutely carry out the foreign policies  we have adopted but also follow a domestic policy which will maintain full  production and employment in the United States. A serious depression here  can disrupt the whole fabric of the world economy.  
1946-101	1946	3. OCCUPIED COUNTRIES  
1946-102	1946	The major tasks of our Military Establishment in Europe following VE-day,  and in the Pacific since the surrender of Japan, have been those of  occupation and military government. In addition we have given much needed  aid to the peoples of the liberated countries.  
1946-103	1946	The end of the war in Europe found Germany in a chaotic condition.  Organized government had ceased to exist, transportation systems had been  wrecked, cities and industrial facilities had been bombed into ruins. In  addition to the tasks of occupation we had to assume all of the functions  of government. Great progress has been made in the repatriation of  displaced persons and of prisoners of war. Of the total of 3,500,000  displaced persons found in the United States zone only 460,000 now remain.  
1946-104	1946	The extensive complications involved by the requirement of dealing with  three other governments engaged in occupation and with the governments of  liberated countries require intensive work and energetic cooperation. The  influx of some 2 million German refugees into our zone of occupation is a  pressing problem, making exacting demands upon an already overstrained  internal economy.  
1946-105	1946	Improvements in the European economy during 1945 have made it possible for  our military authorities to relinquish to the governments of all liberated  areas, or to the United Nations Relief and Rehabilitation Administration,  the responsibility for the provision of food and other civilian relief  supplies. The Army's responsibilities in Europe extend now only to our  zones of occupation in Germany and Austria and to two small areas in  northern Italy.  
1946-106	1946	By contrast with Germany, in Japan we have occupied a country still  possessing an organized and operating governmental system. Although  severely damaged, the Japanese industrial and transportation systems have  been able to insure at least a survival existence for the population. The  repatriation of Japanese military and civilian personnel from overseas is  proceeding as rapidly as shipping and other means permit.  
1946-107	1946	In order to insure that neither Germany nor Japan will again be in a  position to wage aggressive warfare, the armament making potential of these  countries is being dismantled and fundamental changes in their social and  political structures are being effected. Democratic systems are being  fostered to the end that the voice of the common man may be heard in the  councils of his government.  
1946-108	1946	For the first time in history the legal culpability of war makers is being  determined. The trials now in progress in Nurnberg-and those soon to begin  in Tokyo--bring before the bar of international justice those individuals  who are charged with the responsibility for the sufferings of the past six  years. We have high hope that this public portrayal of the guilt of these  evildoers will bring wholesale and permanent revulsion on the part of the  masses of our former enemies against war, militarism, aggression, and  notions of race superiority.  
1946-109	1946	4. DEMOBILIZATION OF OUR ARMED FORCES  
1946-110	1946	The cessation of active campaigning does not mean that we can completely  disband our fighting forces. For their sake and for the sake of their loved  ones at home, I wish that we could. But we still have the task of clinching  the victories we have won--of making certain that Germany and Japan can  never again wage aggressive warfare, that they will not again have the  means to bring on another world war. The performance of that task requires  that, together with our allies, we occupy the hostile areas, complete the  disarmament of our enemies, and take the necessary measures to see to it  that they do not rearm.  
1946-111	1946	As quickly as possible, we are bringing about the reduction of our armed  services to the size required for these tasks of occupation and  disarmament. The Army and the Navy are following both length-of-service and  point systems as far as possible in releasing men and women from the  service. The points are based chiefly on length and character of service,  and on the existence of dependents.  
1946-112	1946	Over 5 million from the Army have already passed through the separation  centers.  
1946-113	1946	The Navy, including the Marine Corps and the Coast Guard, has discharged  over one and a half million.  
1946-114	1946	Of the 12 million men and women serving in the Army and Navy at the time of  the surrender of Germany, one-half have already been released. The greater  part of these had to be brought back to this country from distant parts of  the world.  
1946-115	1946	Of course there are cases of individual hardship in retention of personnel  in the service. There will be in the future. No system of such size can  operate to perfection. But the systems are rounded on fairness and justice,  and they are working at full speed. We shall try to avoid mistakes,  injustices, and hardship--as far as humanly possible.  
1946-116	1946	We have already reached the point where shipping is no longer the  bottleneck in the return of troops from the European theater. The governing  factor now has become the requirement for troops in sufficient strength to  carry out their missions.  
1946-117	1946	In a few months the same situation will exist in the Pacific. By the end of  June, 9 out of 10 who were serving in the armed forces on VE-day will have  been released. Demobilization will continue thereafter, but at a slower  rate, determined by our military responsibilities.  
1946-118	1946	Our national safety and the security of the world will require substantial  armed forces, particularly in overseas service. At the same time it is  imperative that we relieve those who have already done their duty, and that  we relieve them as fast as we can. To do that, the Army and the Navy are  conducting recruiting drives with considerable success.  
1946-119	1946	The Army has obtained nearly 400,000 volunteers in the past four months,  and the Navy has obtained 80,000. Eighty percent of these volunteers for  the regular service have come from those already with the colors. The  Congress has made it possible to offer valuable inducements to those who  are eligible for enlistment. Every effort will be made to enlist the  required number of young men.  
1946-120	1946	The War and Navy Departments now estimate that by a year from now we still  will need a strength of about 2 million including officers, for the armed  forces--Army, Navy, and Air. I have reviewed their estimates and believe  that the safety of the Nation will require the maintenance of an armed  strength of this size for the calendar year that is before us.  
1946-121	1946	In case the campaign for volunteers does not produce that number, it will  be necessary by additional legislation to extend the Selective Service Act  beyond May 16, the date of expiration under existing law. That is the only  way we can get the men and bring back our veterans. There is no other way.  Action along this line should not be postponed beyond March, in order to  avoid uncertainty and disruption.  
1946-122	1946	DOMESTIC AFFAIRS  
1946-123	1946	I. THE ECONOMIC OUTLOOK  
1946-124	1946	Prophets of doom predicted that the United States could not escape a  runaway inflation during the war and an economic collapse after the war.  These predictions have not been borne out. On the contrary, the record of  economic stabilization during the war and during the period of reconversion  has been an outstanding accomplishment.  
1946-125	1946	We know, however, that nothing is as dangerous as overconfidence, in war or  in peace. We have had to fight hard to hold the line. We have made  strenuous efforts to speed reconversion. But neither the danger of a  postwar inflation nor of a subsequent collapse in production and employment  is yet overcome. We must base our policies not on unreasoning optimism or  pessimism but upon a candid recognition of our objectives and upon a  careful analysis of foreseeable trends.  
1946-126	1946	Any precise appraisal of the economic outlook at this time is particularly  difficult. The period of demobilization and reconversion is fraught with  uncertainties. There are also serious gaps in our statistical information.  Certain tendencies are, however, fairly clear and recognition of them  should serve as background for the consideration of next year's Federal  Program. In general, the outlook for business is good, and it is likely to  continue to be good--provided we control inflation and achieve peace in  management labor relations.  
1946-127	1946	Civilian production and employment can be expected to increase throughout  the next year. This does not mean, however, that continuing full employment  is assured. It is probable that demobilization of the armed forces will  proceed faster than the increase in civilian employment opportunities. Even  if substantial further withdrawals from the labor market occur,  unemployment will increase temporarily. The extent to which this  unemployment will persist depends largely on the speed of industrial  expansion and the effectiveness of the policies of the Federal Government.  
1946-128	1946	Along with extraordinary demand there are still at this time many critical  shortages resulting from the war. These extraordinary demands and shortages  may lead to a speculative boom, especially in the price of securities, real  estate, and inventories.  
1946-129	1946	Therefore, our chief worry still is inflation. While we control this  inflationary pressure we must look forward to the time when this  extraordinary demand will subside. It will be years before we catch up with  the demand for housing. The extraordinary demand for other durable goods,  for the replenishment of inventories, and for exports may be satisfied  earlier. No backlog of demand can exist very long in the face of our  tremendous productive capacity. We must expect again to face the problem of  shrinking demand and consequent slackening in sales, production, and  employment. This possibility of a deflationary spiral in the future will  exist unless we now plan and adopt an effective full employment program.  
1946-130	1946	2. GENERAL POLICIES--IMMEDIATE AND LONG-RANGE  
1946-131	1946	During the war, production for civilian use was limited by war needs and  available manpower. Economic stabilization required measures, to spread  limited supplies equitably by rationing, price controls, increased taxes,  savings bond campaigns, and credit controls. Now, with the surrender of our  enemies, economic stabilization requires that policies be directed toward  promoting an increase in supplies at low unit prices.  
1946-132	1946	We must encourage the development of resources and enterprises in all parts  of the country, particularly in underdeveloped areas. For example, the  establishment of new peacetime industries in the Western States and in the  South would, in my judgment, add to existing production and markets rather  than merely bring about a shifting of production. I am asking the  Secretaries of Agriculture, Commerce, and Labor to explore jointly methods  for stimulating new industries, particularly in areas with surplus  agricultural labor.  
1946-133	1946	We must also aid small businessmen and particularly veterans who are  competent to start their own businesses. The establishment and development  of efficient small business ventures, I believe, will not take away from,  but rather will add to, the total business of all enterprises.  
1946-134	1946	Even with maximum encouragement of Production, we cannot hope to remove  scarcities within a short time. The most serious deficiencies will persist  in the fields of residential housing, building materials, and consumers'  durable goods. The critical situation makes continued rent control, price  control, and priorities, allocations, and inventory controls absolutely  essential. Continued control of consumer credit will help to reduce the  pressure on prices of durable goods and will also prolong the period during  which the backlog demand will be effective.  
1946-135	1946	While we are meeting these immediate needs we must look forward to a  long-range program of security and increased standard of living.  
1946-136	1946	The best protection of purchasing power is a policy of full production and  full employment opportunities. Obviously, an employed worker is a better  customer than an unemployed worker. There always will be, however, some  frictional unemployment. In the present period of transition we must deal  with such temporary unemployment as results from the fact that  demobilization will proceed faster than reconversion or industrial  expansion. Such temporary unemployment is probably unavoidable in a period  of rapid change. The unemployed worker is a victim of conditions beyond his  control. He should be enabled to maintain a reasonable standard of living  for himself and his family.  
1946-137	1946	The most serious difficulty in the path of reconversion and expansion is  the establishment of a fair wage structure.  
1946-138	1946	The ability of labor and management to work together, and the wage and  price policies which they develop, are social and economic issues of first  importance.  
1946-139	1946	Both labor and management have a special interest. Labor's interest is very  direct and personal because working conditions, wages, and prices affect  the very life and happiness of the worker and his family.  
1946-140	1946	Management has a no less direct interest because on management rests the  responsibility for conducting a growing and prosperous business.  
1946-141	1946	But management and labor have identical interests in the long run. Good  wages mean good markets. Good business means more jobs and better wages. In  this age of cooperation and in our highly organized economy the problems of  one very soon become the problems of all.  
1946-142	1946	Better human relationships are an urgent need to which organized labor and  management should address themselves. No government policy can make men  understand each other, agree, and get along unless they conduct themselves  in a way to foster mutual respect and good will.  
1946-143	1946	The Government can, however, help to develop machinery which, with the  backing of public opinion, will assist labor and management to resolve  their disagreements in a peaceful manner and reduce the number and duration  of strikes.  
1946-144	1946	All of us realize that productivity--increased output per man--is in the  long run the basis of our standard of living. Management especially must  realize that if labor is to work wholeheartedly for an increase in  production, workers must be given a just share of increased output in  higher wages.  
1946-145	1946	Most industries and most companies have adequate leeway within which to  grant substantial wage increases. These increases will have a direct effect  in increasing consumer demand to the high levels needed. Substantial wage  increases are good business for business because they assure a large market  for their products; substantial wage increases are good business for labor  because they increase labor's standard of living; substantial wage  increases are good business for the country as a whole because capacity  production means an active, healthy, friendly citizenry enjoying the  benefits of democracy under our free enterprise system.  
1946-146	1946	Labor and management in many industries have been operating successfully  under the Government's wage-price policy. Upward revisions of wage scales  have been made in thousands of establishments throughout the Nation since  VJ-day. It is estimated that about 6 million workers, or more than 20  percent of all employees in nonagricultural and nongovernmental  establishments, have received wage increases since August 18, 1945. The  amounts of increases given by individual employers concentrate between 10  and 15 percent, but range from less than 5 percent to over 30 percent.  
1946-147	1946	The United States Conciliation Service since VJ-day has settled over 3,000  disputes affecting over 1,300,000 workers without a strike threat and has  assisted in settling about 1,300 disputes where strikes were threatened  which involved about 500,000 workers. Only workers directly involved, and  not those in related industries who might have been indirectly affected,  are included in these estimates.  
1946-148	1946	Many of these adjustments have occurred in key industries and would have  seemed to us major crises if they had not been settled peaceably.  
1946-149	1946	Within the framework of the wage-price policy there has been definite  success, and it is to be expected that this success will continue in a vast  majority of the cases arising in the months ahead.  
1946-150	1946	However, everyone who realizes the extreme need for a swift and orderly  reconversion must feel a deep concern about the number of major strikes now  in progress. If long continued, these strikes could put a heavy brake on  our program.  
1946-151	1946	I have already made recommendations to the Congress as to the procedure  best adapted to meeting the threat of work stoppages in Nation-wide  industries without sacrificing the fundamental rights of labor to bargain  collectively and ultimately to strike in support of their position.  
1946-152	1946	If we manage our economy properly, the future will see us on a level of  production half again as high as anything we have ever accomplished in  peacetime. Business can in the future pay higher wages and sell for lower  prices than ever before. This is not true now for all companies, nor will  it ever be true for all, but for business generally it is true.  
1946-153	1946	We are relying on all concerned to develop, through collective bargaining,  wage structures that are fair to labor, allow for necessary business  incentives, and conform with a policy designed to "hold the line" on  prices.  
1946-154	1946	Production and more production was the byword during the war and still is  during the transition from war to peace. However, when deferred demand  slackens, we shall once again face the deflationary dangers which beset  this and other countries during the 1930's. Prosperity can be assured only  by a high level of demand supported by high current income; it cannot be  sustained by deferred needs and use of accumulated savings.  
1946-155	1946	If we take the right steps in time we can certainly avoid the disastrous  excesses of runaway booms and headlong depressions. We must not let a year  or two of prosperity lull us into a false feeling of security and a  repetition of the mistakes of the 1920's that culminated in the crash of  1929.  
1946-156	1946	During the year ahead the Government will be called upon to act in many  important fields of economic policy from taxation and foreign trade to  social security and housing. In every case there will be alternatives. We  must choose the alternatives which will best measure up to our need for  maintaining production and employment in the future. We must never lose  sight of our long-term objectives: the broadening of markets--the  maintenance of steadily rising demand. This demand can come from only three  sources: consumers, businesses, or government.  
1946-157	1946	In this country the job of production and distribution is in the hands of  businessmen, farmers, workers, and professional people-in the hands of our  citizens. We want to keep it that way. However, it is the Government's  responsibility to help business, labor, and farmers do their jobs.  
1946-158	1946	There is no question in my mind that the Government, acting on behalf of  all the people, must assume the ultimate responsibility for the economic  health of the Nation. There is no other agency that can. No other  organization has the scope or the authority, nor is any other agency  accountable, to all the people. This does not mean that the Government has  the sole responsibility, nor that it can do the job alone, nor that it can  do the job directly.  
1946-159	1946	All of the policies of the Federal Government must be geared to the  objective of sustained full production and full employment-to raise  consumer purchasing power and to encourage business investment. The  programs we adopt this year and from now on will determine our ability to  achieve our objectives. We must continue to pay particular attention to our  fiscal, monetary, and tax policy, programs to aid business--especially  small business--and transportation, labor-management relations and  wage-price policy, social security and health, education, the farm program,  public works, housing and resource development, and economic foreign  policy.  
1946-160	1946	For example, the kinds of tax measures we have at different times--whether  we raise our revenue in a way to encourage consumer spending and business  investment or to discourage it--have a vital bearing on this question. It  is affected also by regulations on consumer credit and by the money market,  which is strongly influenced by the rate of interest on Government  securities. It is affected by almost every step we take.  
1946-161	1946	In short, the way we handle the proper functions of government, the way we  time the exercise of our traditional and legitimate governmental functions,  has a vital bearing on the economic health of the Nation.  
1946-162	1946	These policies are discussed in greater detail in the accompanying Fifth  Quarterly Report of the Director of War Mobilization and Reconversion.  
1946-163	1946	3. LEGISLATION HERETOFORE RECOMMENDED  
1946-164	1946	AND STILL PENDING  
1946-165	1946	To attain some of these objectives and to meet the other needs of the  United States in the reconversion and postwar period, I have from time to  time made various recommendations to the Congress.  
1946-166	1946	In making these recommendations I have indicated the reasons why I deemed  them essential for progress at home and abroad. A few--a very few--of these  recommendations have been enacted into law by the Congress. Most of them  have not. I here reiterate some of them, and discuss others later in this  Message. I urge upon the Congress early consideration of them. Some are  more urgent than others, but all are necessary.  
1946-167	1946	(1) Legislation to authorize the President to create fact-finding boards  for the prevention of stoppages of work in Nationwide industries after  collective bargaining and conciliation and voluntary arbitration have  failed--as recommended by me on December 3, 1945.  
1946-168	1946	(2) Enactment of a satisfactory full employment bill such as the Senate  bill now in conference between the Senate and the House--as recommended by  me on September 6, 1945.  
1946-169	1946	(3) Legislation to supplement the unemployment insurance benefits for  unemployed workers now provided by the different States--as recommended by  me on May 1945.  
1946-170	1946	(4) Adoption of a permanent Fair Employment Practice Act--as recommended by  me on September 6, 1945.  
1946-171	1946	(5) Legislation substantially raising the amount of minimum wages now  provided by law--as recommended by me on September 6, 1945.  
1946-172	1946	(6) Legislation providing for a comprehensive program for scientific  research--as recommended by me on September 6, 1945.  
1946-173	1946	(7) Legislation enacting a health and medical care program--as recommended  by me on November 19, 1945.  
1946-174	1946	(8) Legislation adopting the program of universal training--as recommended  by me on October 23, 1945.  
1946-175	1946	(9) Legislation providing an adequate salary scale for all Government  employees in all branches of the Government--as recommended by me on  September 6, 1945.  
1946-176	1946	(10) Legislation making provision for succession to the Presidency in the  event of the death or incapacity or disqualification of the President and  Vice President--as recommended by me on June 19, 1945.  
1946-177	1946	(11) Legislation for the unification of the armed services--as recommended  by me on December 19, 1945.  
1946-178	1946	(12) Legislation for the domestic use and control of atomic energy--as  recommended by me on October 3, 1945.  
1946-179	1946	(13) Retention of the United States Employment Service in the Federal  Government for a period at least up to June 30, 1947--as recommended by me  on September 6, 1945.  
1946-180	1946	(14) Legislation to increase unemployment allowances for veterans in line  with increases for civilians--as recommended by me on September 6, 1945.  
1946-181	1946	(15) Social security coverage for veterans for their period of military  service--as recommended by me on September 6, 1945.  
1946-182	1946	(16) Extension of crop insurance--as recommended by me on September 6,  1945.  
1946-183	1946	(17) Legislation permitting the sale of ships by the Maritime Commission at  home and abroad--as recommended by me on September 6, 1945. I further  recommend that this legislation include adequate authority for chartering  vessels both here and abroad.  
1946-184	1946	(18) Legislation to take care of the stock piling of materials in which the  United States is naturally deficient--as recommended by me on September 6,  1945.  
1946-185	1946	(19) Enactment of Federal airport legislation-as recommended by me on  September 6, 1945.  
1946-186	1946	(20) Legislation repealing the Johnson Act on foreign loans--as recommended  by me on September 6, 1945.  
1946-187	1946	(21) Legislation for the development of the Great Lakes-St. Lawrence River  Basin-as recommended by me on October 3, 1945.  
1946-188	1946	4. POLICIES IN SPECIFIC FIELDS  
1946-189	1946	(a) Extension of Price Control Act.  
1946-190	1946	Today inflation is our greatest immediate domestic problem. So far the  fight against inflation has been waged successfully. Since May 1943,  following President Roosevelt's "hold the line" order and in the face of  the greatest pressures which this country has ever seen, the cost of living  index has risen only three percent. Wholesale prices in this same period  have been held to an increase of two and one-half percent.  
1946-191	1946	This record has been made possible by the vigorous efforts of the agencies  responsible for this program. But their efforts would have been fruitless  if they had not had the solid support of the great masses of our people.  The Congress is to be congratulated for its role in providing the  legislation under which this work has been carried out.  
1946-192	1946	On VJ-day it was clear to all thinking people that the danger of inflation  was by no means over. Many of us can remember vividly our disastrous  experience following World War I. Then the very restricted wartime controls  were lifted too quickly, and as a result prices and rents moved more  rapidly upward. In the year and a half following the armistice, rents,  food, and clothing shot to higher and still higher levels.  
1946-193	1946	When the inevitable crash occurred less than two years after the end of the  war, business bankruptcies were widespread. Profits were wiped out.  Inventory losses amounted to billions of dollars. Farm income dropped by  one-half. Factory pay rolls dropped 40 percent, and nearly one-fifth of all  our industrial workers were walking the streets in search of jobs. This was  a grim greeting, indeed, to offer our veterans who had just returned from  overseas.  
1946-194	1946	When I addressed the Congress in September, I emphasized that we must  continue to hold the price line until the production of goods caught up  with the tremendous demands. Since then we have seen demonstrated the  strength of the inflationary pressures which we have to face.  
1946-195	1946	Retail sales in the closing months of 1945 ran 12 percent above the  previous peak for that season, which came in 1944. Prices throughout the  entire economy have been pressing hard against the price ceilings. The  prices of real estate, which cannot now be controlled under the law, are  rising rapidly. Commercial rents are not included in the present price  control law and, where they are not controlled by State law, have been  increasing, causing difficulties to many businessmen.  
1946-196	1946	It will be impossible to maintain a high purchasing power or an expanding  production unless we can keep prices at levels which can be met by the vast  majority of our people. Full production is the greatest weapon against  inflation, but until we can produce enough goods to meet the threat of  inflation the Government will have to exercise its wartime control over  prices.  
1946-197	1946	I am sure that the people of the United States are disturbed by the demands  made by several business groups with regard to price and rent control.  
1946-198	1946	I am particularly disturbed at the effect such thinking may have on  production and employment. If manufacturers continue to hold back goods and  decline to submit bids when invited--as I am informed some are doing--in  anticipation of higher prices which would follow the end of price controls,  we shall inevitably slow down production and create needless unemployment.  On the other hand, there are the vast majority of American businessmen who  are not holding back goods, but who need certainty about the Government  pricing policy in order to fix their own long-range pricing policies.  
1946-199	1946	Businessmen are entitled therefore to a dear statement of the policy of the  Government on the subject. Tenants and housewives, farmers and  workers--consumers in general--have an equal right.  
1946-200	1946	We are all anxious to eliminate unnecessary controls just as rapidly as we  can do so. The steps that we have already taken in many directions toward  that end are a clear indication of our policy.  
1946-201	1946	The present Price Control Act expires on June 30, 1946. If we expect to  maintain a steady economy we shall have to maintain price and rent control  for many months to come. The inflationary pressures on prices and rents,  with relatively few exceptions, are now at an all-time peak. Unless the  Price Control Act is renewed there will be no limit to which our price  levels would soar. Our country would face a national disaster.  
1946-202	1946	We cannot wait to renew the act until immediately before it expires.  Inflation results from psychological as well as economic conditions. The  country has a clear right to know where the Congress stands on this  all-important problem. Any uncertainty now as to whether the act will be  extended gives rise to price speculation, to withholding of goods from the  market in anticipation of rising prices, and to delays in achieving maximum  production.  
1946-203	1946	I do not doubt that the Congress will be beset by many groups who will urge  that the legislation that I have proposed should either be eliminated or  modified to the point where it is nearly useless. The Congress has a clear  responsibility to meet this challenge with courage and determination. I  have every confidence that it will do so.  
1946-204	1946	I strongly urge that the Congress now resolve all doubts and as soon as  possible adopt legislation continuing rent and price control in effect for  a full year from June 30, 1946.  
1946-205	1946	(b) Food subsidies.  
1946-206	1946	If the price line is to be held, if our people are to be protected against  the inflationary dangers which confront us, we must do more than extend the  Price Control Act. In September we were hopeful that the inflationary  pressures would by this time have begun to diminish. We were particularly  hopeful on food. Indeed, it was estimated that food prices at retail would  drop from 3 to 5 percent in the first six months following the end of the  war.  
1946-207	1946	In anticipation of this decline in food prices, it was our belief that food  subsidies could be removed gradually during the winter and spring months,  and eliminated almost completely by June 30 of this year. It was our  feeling that the food subsidies could be dropped without an increase to the  consumer in the present level of food prices or in the over-all cost of  living.  
1946-208	1946	As matters stand today, however, food prices are pressing hard against the  ceilings. The expected decline in food prices has not occurred, nor is it  likely to occur for many months to come. This brings me to the reluctant  conclusion that food subsidies must be continued beyond June 30, 1946.  
1946-209	1946	If we fail to take this necessary step, meat prices on July 1 will be from  3 to 5 cents higher than their average present levels; butter will be at  least 12 cents a pound higher, in addition to the 5 cents a pound increase  of last fall; milk will increase from 1 to 2 cents a quart; bread will  increase about 1 cent a loaf; sugar will increase over 1 cent a pound;  cheese, in addition to the increase of 4 cents now planned for the latter  part of this month, will go up an additional 8 cents. In terms of  percentages we may find the cost-of-living index for food increased by more  than 8 percent, which in turn would result in more than a 3-percent  increase in the cost of living.  
1946-210	1946	If prices of food were allowed to increase by these amounts, I must make it  clear to the Congress that, in my opinion, it would become extremely  difficult for us to control the forces of inflation.  
1946-211	1946	None of us likes subsidies. Our farmers, in particular, have always been  opposed to them.  
1946-212	1946	But I believe our farmers are as deeply conscious as any group in the land  of the havoc which inflation can create. Certainly in the past eighteen  months there has been no group which has fought any harder in support of  the Government's price control program. I am confident that, if the facts  are placed before them and if they see clearly the evils between which we  are forced to choose, they will understand the reasons why subsidies must  be continued.  
1946-213	1946	The legislation continuing the use of food subsidies into the new fiscal  year should be tied down specifically to certain standards. A very proper  requirement, in my opinion, would be that subsidies be removed as soon as  it is indicated that the cost of living will decline below the present  levels.  
1946-214	1946	(c) Extension of War Powers Act.  
1946-215	1946	The Second War Powers Act has recently been extended by the Congress for  six months instead of for a year. It will now expire, unless further  extended, on June 30, 1946. This act is the basis for priority and  inventory controls governing the use of scarce materials, as well as for  other powers essential to orderly reconversion.  
1946-216	1946	I think that this Administration has given adequate proof of the fact that  it desires to eliminate wartime controls as quickly and as expeditiously as  possible. However, we know that there will continue to be shortages of  certain materials caused by the war even after June 30, 1946. It is  important that businessmen know now that materials in short supply are  going to be controlled and distributed fairly as long as these war-born  shortages continue.  
1946-217	1946	I, therefore, urge the Congress soon to extend the Second War Powers Act.  We cannot afford to wait until just before the act expires next June. To  wait would cause the controls to break down in a short time, and would  hamper our production and employment program.  
1946-218	1946	(d) Small business and competition.  
1946-219	1946	A rising birth rate for small business, and a favorable environment for its  growth, are not only economic necessities but also important practical  demonstrations of opportunity in a democratic free society. A great many  veterans and workers with new skills and experience will want to start in  for themselves. The opportunity must be afforded them to do so. They are  the small businessmen of the future.  
1946-220	1946	Actually when we talk about small business we are talking about almost all  of the Nation's individual businesses. Nine out of every ten concerns fall  into this category, and 45 percent of all workers are employed by them.  Between 30 and 40 percent of the total value of all business transactions  are handled by small business.  
1946-221	1946	It is obvious national policy to foster the sound development of small  business. It helps to maintain high levels of employment and national  income and consumption of the goods and services that the Nation can  produce. It encourages the competition that keeps our free enterprise  economy vigorous and expanding. Small business, because of its flexibility,  assists in the rapid exploitation of scientific and technological  discoveries. Investment in small business can absorb a large volume of  savings that might otherwise not be tapped.  
1946-222	1946	The Government should encourage and is encouraging small-business  initiative and originality to stimulate progress through competition.  
1946-223	1946	During the war, the Smaller War Plants Corporation assisted small concerns  to make a maximum contribution to victory. The work of the Smaller War  Plants Corporation is being carried on in peacetime by the Federal Loan  Agency and the Department of Commerce. The fundamental approach to the job  of encouraging small concerns must be based on:  
1946-224	1946	1. Arrangements for making private and public financial resources available  on reasonable terms.  
1946-225	1946	2. Provision of technical advice and assistance to business as a whole on  production, research, and management problems. This will help equalize  competitive relationships between large and small companies, for many of  the small companies cannot afford expensive technical research, accounting,  and tax advice.  
1946-226	1946	3. Elimination of trade practices and agreements which reduce competition  and discriminate against new or small enterprises.  
1946-227	1946	We speak a great deal about the free enterprise economy of our country. It  is competition that keeps it free. It is competition that keeps it growing  and developing. The truth is that we need far more competition in the  future than we have had in the immediate past.  
1946-228	1946	By strangling competition, monopolistic activity prevents or deters  investment in new or expanded production facilities. This lessens the  opportunity for employment and chokes off new outlets for idle savings.  Monopoly maintains prices at artificially high levels and reduces  consumption which, with lower prices, would rise and support larger  production and higher employment. Monopoly, not being subject to  competitive pressure, is slow to take advantage of technical advances which  would lower prices or improve quality. All three of these monopolistic  activities very directly lower the standard of living--through higher  prices and lower quality of product--which free competition would improve.  
1946-229	1946	The Federal Government must protect legitimate business and consumers from  predatory and monopolistic practices by the vigilant enforcement of  regulatory legislation. The program will be designed to have a maximum  impact upon monopolistic bottlenecks and unfair competitive practices  hindering expansion in employment.  
1946-230	1946	During the war, enforcement of antimonopoly laws was suspended in a number  of fields. The Government must now take major steps not only to maintain  enforcement of antitrust laws but to encourage new and competing  enterprises in every way. The deferred demand of the war years and the  large accumulations of liquid assets provide ample incentive for expansion.  Equalizing of business opportunity, under full and free competition, must  be a prime responsibility in the reconversion period and in the years that  follow. Many leading businessmen have recognized the importance of such  action both to themselves and to the economy as a whole.  
1946-231	1946	But we must do more than break up trusts and monopolies after they have  begun to strangle competition. We must take positive action to foster new,  expanding enterprises. By legislation and by administration we must take  specific steps to discourage the formation or the strengthening of  competition-restricting business. We must have an over-all antimonopoly  policy which can be applied by all agencies of the Government in exercising  the functions assigned to them--a policy designed to encourage the  formation and growth of new and freely competitive enterprises.  
1946-232	1946	Among the many departments and agencies which have parts in the program  affecting business and competition, the Department of Commerce has a  particularly important role. That is why I have recommended a substantial  increase in appropriations for the next fiscal year for this Department.  
1946-233	1946	In its assistance to industry, the Department of Commerce will concentrate  its efforts on these primary objectives: Promotion of a large and  well-balanced foreign trade; provision of improved technical assistance and  management aids, especially for small enterprises; and strengthening of  basic statistics on business operations, both by industries and by regions.  To make new inventions and discoveries available more promptly to all  businesses, small and large, the Department proposes to expand its own  research activities, promote research by universities, improve Patent  Office procedures, and develop a greatly expanded system of field offices  readily accessible to the businesses they serve.  
1946-234	1946	Many gaps exist in the private financial mechanism, especially in the  provision of long-term funds for small- and medium sized enterprises. In  the peacetime economy the Reconstruction Finance Corporation will take the  leadership in assuring adequate financing for small enterprises which  cannot secure funds from other sources. Most of the funds should and will  be provided by private lenders; but the Reconstruction Finance Corporation  will share any unusual risks through guarantees of private loans, with  direct loans only when private capital is unwilling to participate on a  reasonable basis.  
1946-235	1946	(e) Minimum wage.  
1946-236	1946	Full employment and full production may be achieved only by maintaining a  level of consumer income far higher than that of the prewar period. A high  level of consumer income will maintain the market for the output of our  mills, farms, and factories, which we have demonstrated during the war  years that we can produce. One of the basic steps which the Congress can  take to establish a high level of consumer income is to amend the Fair  Labor Standards Act to raise substandard wages to a decent minimum and to  extend similar protection to additional workers who are not covered by the  present act.  
1946-237	1946	Substandard wages are bad for business and for the farmer. Substandard  wages provide only a substandard market for the goods and services produced  by American industry and agriculture.  
1946-238	1946	At the present time the Fair Labor Standards Act prescribes a minimum wage  of 40 cents an hour for those workers who are covered by the act. The  present minimum wage represents an annual income of about $800 to those  continuously employed for 50 weeks--clearly a wholly inadequate budget for  an American family. I am in full accord with the proposal now pending in  the Congress that the statutory minimum be raised immediately to 65 cents  an hour, with further increases to 70 cents after one year and to 75 cents  after two years. I also favor the proposal that the industry committee  procedure be used to set rates higher than 65 cents per hour during the  two-year interval before the 75-cent basic wage would otherwise become  applicable.  
1946-239	1946	The proposed minimum wage of 65 cents an hour would assure the worker an  annual income of about $1,300 a year in steady employment. This amount is  clearly a modest goal. After considering cost-of-living increases in recent  years, it is little more than a 10-cent increase over the present legal  minimum. In fact, if any large number of workers earn less than this  amount, we will find it impossible to maintain the levels of purchasing  power needed to sustain the stable prosperity which we desire. Raising the  minimum to 75 cents an hour will provide the wage earner with an annual  income of $1,500 if he is fully employed.  
1946-240	1946	The proposed higher minimum wage levels are feasible without involving  serious price adjustments or serious geographic dislocations.  
1946-241	1946	Today about 20 percent of our manufacturing wage earners--or about 2  million-earn less than 65 cents an hour. Because wages in most industries  have risen during the war, this is about the same as the proportion-17  percent--who were earning less than 40 cents an hour in 1941.  
1946-242	1946	I also recommend that minimum wage protection be extended to several groups  of workers not now covered. The need for a decent standard of living is by  no means limited to those workers who happen to be covered by the act as it  now stands. It is particularly vital at this period of readjustment in the  national economy and readjustment in employment of labor to extend minimum  wage protection as far as possible.  
1946-243	1946	Lifting the basic minimum wage is necessary, it is justified as a matter of  simple equity to workers, and it will prove not only feasible but also  directly beneficial to the Nation's employers.  
1946-244	1946	(f) Agricultural programs.  
1946-245	1946	The farmers of America generally are entering the crop year of 1946 in  better financial condition than ever before. Farm mortgage debt is the  lowest in 30 years. Farmers' savings are the largest in history. Our  agricultural plant is in much better condition than after World War I. Farm  machinery and supplies are expected to be available in larger volume, and  farm labor problems will be less acute.  
1946-246	1946	The demand for farm products will continue strong during the next year or  two because domestic purchases will be supplemented by a high level of  exports and foreign relief shipments. It is currently estimated that from 7  to 10 percent of the total United States food supply may be exported in the  calendar year 1946.  
1946-247	1946	Farm prices are expected to remain at least at their present levels in the  immediate future, and for at least the next 12 months they are expected to  yield a net farm income double the 1935-39 average and higher than in any  year prior to 1943.  
1946-248	1946	We can look to the future of agriculture with greater confidence than in  many a year in the past. Agriculture itself is moving confidently ahead,  planning for another year of big production, taking definite and positive  steps to lead the way toward an economy of abundance.  
1946-249	1946	Agricultural production goals for 1946 call for somewhat greater acreage  than actually was planted in 1945. Agriculture is prepared to demonstrate  that it can make a peacetime contribution as great as its contribution  toward the winning of the war.  
1946-250	1946	In spite of supplying our armed forces and our allies during the war with a  fifth to a fourth of our total food output, farmers were still able to  provide our civilians with 8 percent more food per capita than the average  for the five years preceding the war. Since the surrender of Japan,  civilian food consumption has risen still further. By the end of 1945 the  amount of the increase in food consumption was estimated to be as high as  15 percent over the prewar average. The record shows that the people of  this country want and need more food and that they will buy more food if  only they have the jobs and the purchasing power. The first essential  therefore in providing fully for the welfare of agriculture is to maintain  full employment and a high level of purchasing power throughout the  Nation.  
1946-251	1946	For the period immediately ahead we shall still have the problem of  supplying enough food. If we are to do our part in aiding the war-stricken  and starving countries some of the food desires of our own people will not  be completely satisfied, at least until these nations have had an  opportunity to harvest another crop. During the next few months the need  for food in the world will be more serious than at any time during the war.  And, despite the large shipments we have already made, and despite what we  shall send, there remain great needs abroad.  
1946-252	1946	Beyond the relief feeding period, there will still be substantial foreign  outlets for our farm commodities. The chief dependence of the farmer,  however, as always, must be upon the buying power of our own people.  
1946-253	1946	The first obligation of the Government to agriculture for the reconversion  period is to make good on its price-support commitments. This we intend to  do, with realistic consideration for the sound patterns of production that  will contribute most to the long-time welfare of agriculture and the whole  Nation. The period during which prices are supported will provide an  opportunity for farmers individually to strengthen their position in  changing over from a wartime to a peacetime basis of production. It will  provide an opportunity for the Congress to review the needs of agriculture  and make changes in national legislation where experience has shown changes  to be needed. In this connection, the Congress will wish to consider  legislation to take the place of the 1937 Sugar Act which expires at the  end of this year. During this period we must do a thorough job of basic  planning to the end that agriculture shall be able to contribute its full  share toward a healthy national economy.  
1946-254	1946	Our long-range agricultural policies should have two main objectives:  First, to assure the people on the farms a fair share of the national  income; and, second, to encourage an agricultural production pattern that  is best fitted to the Nation's needs. To accomplish this second objective  we shall have to take into consideration changes that have taken place and  will continue to take place in the production of farm commodities--changes  that affect costs and efficiency and volume.  
1946-255	1946	What we seek ultimately is a high level of food production and consumption  that will provide good nutrition for everyone. This cannot be accomplished  by agriculture alone. We can be certain of our capacity to produce food,  but we have often failed to distribute it as well as we should and to see  that our people can afford to buy it. The way to get good nutrition for the  whole Nation is to provide employment opportunities and purchasing power  for all groups that will enable them to buy full diets at market prices.  
1946-256	1946	Wherever purchasing power fails to reach this level we should see that they  have some means of getting adequate food at prices in line with their  ability to buy. Therefore, we should have available supplementary programs  that will enable all our people to have enough of the right kind of food.  
1946-257	1946	For example, one of the best possible contributions toward building a  stronger, healthier Nation would be a permanent school-lunch program on a  scale adequate to assure every school child a good lunch at noon. The  Congress, of course, has recognized this need for a continuing school-lunch  program and legislation to that effect has been introduced and hearings  held. The plan contemplates the attainment of this objective with a minimum  of Federal expenditures. I hope that the legislation will be enacted in  time for a permanent program to start with the beginning of the school year  next fall.  
1946-258	1946	We have the technical knowledge and the productive capacity to provide  plenty of good food for every man, woman, and child in the United States.  It is time we made that possibility a reality.  
1946-259	1946	(g) Resource development.  
1946-260	1946	The strength of our Nation and the welfare of the people rest upon the  natural resources of the country. We have learned that proper conservation  of our lands, including our forests and minerals, and wise management of  our waters will add immensely to our national wealth.  
1946-261	1946	The first step in the Government's conservation program must be to find out  just what are our basic resources, and how they should be used. We need to  take, as soon as possible, an inventory of the lands, the minerals, and the  forests of the Nation.  
1946-262	1946	During the war it was necessary to curtail some of our long-range plans for  development of our natural resources, and to emphasize programs vital to  the prosecution of the war. Work was suspended on a number of flood control  and reclamation projects and on the development of our national forests and  parks. This work must now be resumed, and new projects must be undertaken  to provide essential services and to assist in the process of economic  development.  
1946-263	1946	The rivers of America offer a great opportunity to our generation in the  management of the national wealth. By a wise use of Federal funds, most of  which will be repaid into the Treasury, the scourge of floods and drought  can be curbed, water can be brought to arid lands, navigation can be  extended, and cheap power can be brought alike to the farms and to the  industries of our land.  
1946-264	1946	Through the use of the waters of the Columbia River, for example, we are  creating a rich agricultural area as large as the State of Delaware. At the  same time, we are producing power at Grand Coulee and at Bonneville which  played a mighty part in winning the war and which will found a great  peacetime industry in the Northwest. The Tennessee Valley Authority will  resume its peacetime program of promoting full use of the resources of the  Valley. We shall continue our plans for the development of the Missouri  Valley, the Arkansas Valley, and the Central Valley of California.  
1946-265	1946	The Congress has shown itself alive to the practical requirements for a  beneficial use of our water resources by providing that preference in the  sale of power be given to farmers' cooperatives and public agencies. The  public power program thus authorized must continue to be made effective by  building the necessary generating and transmission facilities to furnish  the maximum of firm power needed at the wholesale markets, which are often  distant from the dam sites.  
1946-266	1946	These great developmental projects will open the frontiers of agriculture,  industry, and commerce. The employment opportunities thus offered will also  go far to ease the transition from war to peace.  
1946-267	1946	(h) Public works.  
1946-268	1946	During the war even urgently needed Federal, State, and local construction  projects were deferred in order to release sources for war production. In  resuming public works construction, it is desirable to proceed only at a  moderate rate, since demand for private construction will be abnormally  high for some time. Our public works program should be timed to reach its  peak after demand for private construction has begun to taper off.  Meanwhile, however, plans should be prepared if we are to act promptly when  the present extraordinary private demand begins to run out.  
1946-269	1946	The Congress made money available to Federal agencies for their public  works planning in the fiscal year 1946. I strongly recommend that this  policy be continued and extended in the fiscal year 1947.  
1946-270	1946	State and local governments also have an essential role to play in a  national public works program. In my message of September 6, 1945, I  recommended that the Congress vote such grants to State and local  governments as will insure that each level of government makes its proper  contribution to a balanced public construction program. Specifically, the  Federal Government should aid State and local governments in planning their  own public works programs, in undertaking projects related to Federal  programs of regional development, and in constructing such public works as  are necessary to carry out the various policies of the Federal Government.  
1946-271	1946	Early in 1945 the Congress made available advances to State and local  governments for planning public works projects, and recently made  additional provision to continue these advances through the fiscal year  1946. I believe that further appropriations will be needed for the same  purpose for the fiscal year 1947.  
1946-272	1946	The Congress has already made provision for highway programs. It is now  considering legislation which would expand Federal grants and loans in  several other fields, including construction of airports, hospital and  health centers, housing, water pollution control facilities, and  educational plant facilities. I hope that early action will be taken to  authorize these Federal programs.  
1946-273	1946	With respect to public works of strictly local importance, State and local  governments should proceed without Federal assistance except in planning.  This rule should be subject to review when and if the prospect of highly  adverse general economic developments warrants it.  
1946-274	1946	All loans and grants for public works should be planned and administered in  such a way that they are brought into accord with the other elements of the  Federal Program.  
1946-275	1946	Our long-run objective is to achieve a program of direct Federal and  Federally assisted public works which is planned in advance and  synchronized with business conditions. In this way it can make its greatest  contribution to general economic stability.  
1946-276	1946	(1) National housing program.  
1946-277	1946	Last September I stated in my message to the Congress that housing was high  on the list of matters calling for decisive action.  
1946-278	1946	Since then the housing shortage in countless communities, affecting  millions of families, has magnified this call to action.  
1946-279	1946	Today we face both an immediate emergency and a major postwar problem.  
1946-280	1946	Since VJ-day the wartime housing shortage has been growing steadily worse  and pressure on real estate values has increased. Returning veterans often  cannot find a satisfactory place for their families to live, and many who  buy have to pay exorbitant prices. Rapid demobilization inevitably means  further overcrowding.  
1946-281	1946	A realistic and practical attack on the emergency will require aggressive  action by local governments, with Federal aid, to exploit all opportunities  and to give the veterans as far as possible first chance at vacancies. It  will require continuation of rent control in shortage areas as well as  legislation to permit control of sales prices. It will require maximum  conversion of temporary war units for veterans' housing and their  transportation to communities with the most pressing needs; the Congress  has already appropriated funds for this purpose.  
1946-282	1946	The inflation in the price of housing is growing daily.  
1946-283	1946	As a result of the housing shortage, it is inevitable that the present  dangers of inflation in home values will continue unless the Congress takes  action in the immediate future.  
1946-284	1946	Legislation is now pending in the Congress which would provide for ceiling  prices for old and new houses. The authority to fix such ceilings is  essential. With such authority, our veterans and other prospective home  owners would be protected against a skyrocketing of home prices. The  country would be protected from the extension of the present inflation in  home values which, if allowed to continue, will threaten not only the  stabilization program but our opportunities for attaining a sustained high  level of home construction.  
1946-285	1946	Such measures are necessary stopgaps-but only stopgaps. This emergency  action, taken alone, is good--but not enough. The housing shortage did not  start with the war or with demobilization; it began years before that and  has steadily accumulated. The speed with which the Congress establishes the  foundation for a permanent, long-range housing program will determine how  effectively we grasp the immense opportunity to achieve our goal of decent  housing and to make housing a major instrument of continuing prosperity and  full employment in the years ahead. It will determine whether we move  forward to a stable and healthy housing enterprise and toward providing a  decent home for every American family.  
1946-286	1946	Production is the only fully effective answer. To get the wheels turning, I  have appointed an emergency housing expediter. I have approved  establishment of priorities designed to assure an ample share of scarce  materials to builders of houses for which veterans will have preference.  Additional price and wage adjustments will be made where necessary, and  other steps will be taken to stimulate greater production of bottleneck  items. I recommend consideration of every sound method for expansion in  facilities for insurance of privately financed housing by the Federal  Housing Administration and resumption of previously authorized low-rent  public housing projects suspended during the war.  
1946-287	1946	In order to meet as many demands of the emergency situation as possible, a  program of emergency measures is now being formulated for action. These  will include steps in addition to those already taken. As quickly as this  program can be formulated, announcement will be made.  
1946-288	1946	Last September I also outlined to the Congress the basic principles for the  kind of decisive, permanent legislation necessary for a long-range housing  program.  
1946-289	1946	These principles place paramount the fact that housing construction and  financing for the overwhelming majority of our citizens should be done by  private enterprise. They contemplate also that we afford governmental  encouragement to privately financed house construction for families of  moderate income, through extension of the successful system of insurance of  housing investment; that research be undertaken to develop better and  cheaper methods of building homes; that communities be assisted in  appraising their housing needs; that we commence a program of Federal aid,  with fair local participation, to stimulate and promote the rebuilding and  redevelopment of slums and blighted areas--with maximum use of private  capital. It is equally essential that we use public funds to assist  families of low income who could not otherwise enjoy adequate housing, and  that we quicken our rate of progress in rural housing.  
1946-290	1946	Legislation now under consideration by the Congress provides for a  comprehensive attack jointly by private enterprise, State and local  authorities, and the Federal Government. This legislation would make  permanent the National Housing Agency and give it authority and funds for  much needed technical and economic research. It would provide additional  stimulus for privately financed housing construction. This stimulus  consists of establishing a new system of yield insurance to encourage  large-scale investment in rental housing and broadening the insuring powers  of the Federal Housing Administration and the lending powers of the Federal  savings and loan associations.  
1946-291	1946	Where private industry cannot build, the Government must step in to do the  job. The bill would encourage expansion in housing available for the lowest  income groups by continuing to provide direct subsidies for low-rent  housing and rural housing. It would facilitate land assembly for urban  redevelopment by loans and contributions to local public agencies where the  localities do their share.  
1946-292	1946	Prompt enactment of permanent housing legislation along these lines will  not interfere with the emergency action already under way. On the contrary,  it would lift us out of a potentially perpetual state of housing emergency.  It would offer the best hope and prospect to millions of veterans and other  American families that the American system can offer more to them than  temporary makeshifts.  
1946-293	1946	I have said before that the people of the United States can be the best  housed people in the world. I repeat that assertion, and I welcome the  cooperation of the Congress in achieving that goal.  
1946-294	1946	(j) Social security and health.  
1946-295	1946	Our Social Security System has just celebrated its tenth anniversary.  During the past decade this program has supported the welfare and morale of  a large part of our people by removing some of the hazards and hardships of  the aged, the unemployed, and widows and dependent children.  
1946-296	1946	But, looking back over 10 years' experience and ahead to the future, we  cannot fail to see defects and serious inadequacies in our system as it now  exists. Benefits are in many cases inadequate; a great many persons are  excluded from coverage; and provision has not been made for social  insurance to cover the cost of medical care and the earnings lost by the  sick and the disabled.  
1946-297	1946	In the field of old-age security, there seems to be no adequate reason for  excluding such groups as the self-employed, agricultural and domestic  workers, and employees of nonprofit organizations. Since many of these  groups earn wages too low to permit significant savings for old age, they  are in special need of the assured income that can be provided by old-age  insurance.  
1946-298	1946	We must take urgent measures for the readjustment period ahead. The  Congress for some time has been considering legislation designed to  supplement at Federal expense, during the immediate reconversion period,  compensation payments to the unemployed. Again I urge the Congress to enact  legislation liberalizing unemployment compensation benefits and extending  the coverage. Providing for the sustained consumption by the unemployed  persons and their families is more than a welfare policy; it is sound  economic policy. A sustained high level of consumer purchases is a basic  ingredient of a prosperous economy.  
1946-299	1946	During the war, nearly 5 million men were rejected for military service  because of physical or mental defects which in many cases might have been  prevented or corrected. This is shocking evidence that large sections of  the population are at substandard levels of health. The need for a program  that will give everyone opportunity for medical care is obvious. Nor can  there be any serious doubt of the Government's responsibility for helping  in this human and social problem.  
1946-300	1946	The comprehensive health program which I recommended on November 19, 1945,  will require substantial additions to the Social Security System and, in  conjunction with other changes that need to be made, will require further  consideration of the financial basis for social security. The system of  prepaid medical care which I have recommended is expected eventually to  require amounts equivalent to 4 percent of earnings up to $3,600 a year,  which is about the average of present expenditures by individuals for  medical care. The pooling of medical costs, under a plan which permits each  individual to make a free choice of doctor and hospital, would assure that  individuals receive adequate treatment and hospitalization when they are  faced with emergencies for which they cannot budget individually. In  addition, I recommended insurance benefits to replace part of the earnings  lost through temporary sickness and permanent disability.  
1946-301	1946	Even without these proposed major additions, it would now be time to  undertake a thorough reconsideration of our social security laws. The  structure should be expanded and liberalized. Provision should be made for  extending coverage credit to veterans for the period of their service in  the armed forces. In the financial provisions we must reconcile the  actuarial needs of social security, including health insurance, with the  requirements of a revenue system that is designed to promote a high level  of consumption and full employment.  
1946-302	1946	(k) Education.  
1946-303	1946	Although the major responsibility for financing education rests with the  States, some assistance has long been given by the Federal Government.  Further assistance is desirable and essential. There are many areas and  some whole States where good schools cannot be provided without imposing an  undue local tax burden on the citizens. It is essential to provide adequate  elementary and secondary schools everywhere, and additional educational  opportunities for large numbers of people beyond the secondary level.  Accordingly, I repeat the proposal of last year's Budget Message that the  Federal Government provide financial aid to assist the States in assuring  more nearly equal opportunities for a good education. The proposed Federal  grants for current educational expenditures should be made for the purpose  of improving the educational system where improvement is most needed. They  should not be used to replace existing non-Federal expenditures, or even to  restore merely the situation which existed before the war.  
1946-304	1946	In the future we expect incomes considerably higher than before the war.  Higher incomes should make it possible for State and local governments and  for individuals to support higher and more nearly adequate expenditures for  education. But inequality among the States will still remain, and Federal  help will still be needed.  
1946-305	1946	As a part of our total public works program, consideration should be given  to the need for providing adequate buildings for schools and other  educational institutions. In view of current arrears in the construction of  educational facilities, I believe that legislation to authorize grants for  educational facilities, to be matched by similar expenditures by State and  local authorities, should receive the favorable consideration of the  Congress.  
1946-306	1946	The Federal Government has not sought, and will not seek, to dominate  education in the States. It should continue its historic role of leadership  and advice and, for the purpose of equalizing educational opportunity, it  should extend further financial support to the cause of education in areas  where this is desirable.  
1946-307	1946	(l) Federal Government personnel.  
1946-308	1946	The rapid reconversion of the Federal Government from war to peace is  reflected in the demobilization of its civilian personnel. The number of  these employees in continental United States has been reduced by more than  500,000 from the total of approximately 2,900,000 employed in the final  months of the war. I expect that by next June we shall have made a further  reduction of equal magnitude and that there will be continuing reductions  during the next fiscal year. Of the special wartime agencies now remaining,  only a few are expected to continue actively into the next fiscal year.  
1946-309	1946	At the same time that we have curtailed the number of employees, we have  shortened the workweek by one-sixth or more throughout the Government and  have restored holidays. The process of readjustment has been complicated  and costs have been increased by a heavy turn-over in the remaining  personnel--particularly by the loss of some of our best administrators.  Thousands of war veterans have been reinstated or newly employed in the  civil service. Many civilians have been transferred from war agencies to  their former peacetime agencies. Recruitment standards, which had to be  relaxed during the war, are now being tightened.  
1946-310	1946	The elimination last autumn of overtime work for nearly all Federal  employees meant a sharp cut in their incomes. For salaried workers, the  blow was softened but by no means offset by the increased rates of pay  which had become effective July 1. Further adjustments to compensate for  increased living costs are required. Moreover, we have long needed a  general upward revision of Federal Government salary scales at all levels  in all branches--legislative, judicial, and executive. Too many in  Government have had to sacrifice too much in economic advantage to serve  the Nation.  
1946-311	1946	Adequate salaries will result in economies and improved efficiency in the  conduct of Government business--gains that will far outweigh the immediate  costs. I hope the Congress will expedite action on salary legislation for  all Federal employees in all branches of the Government. The only exception  I would make is in the case of workers whose pay rates are established by  wage boards; a blanket adjustment would destroy the system by which their  wages are kept aligned with prevailing rates in particular localities. The  wage boards should be sensitive now, as they were during the war, to  changes in local prevailing wage rates and should make adjustments  accordingly.  
1946-312	1946	I hope also that the Congress may see fit to enact legislation for the  adequate protection of the health and safety of Federal employees, for  their coverage under a system of unemployment compensation, and for their  return at Government expense to their homes after separation from wartime  service.  
1946-313	1946	(m) Territories, insular possessions, and the District of Columbia.  
1946-314	1946	The major governments of the world face few problems as important and as  perplexing as those relating to dependent peoples. This Government is  committed to the democratic principle that it is for the dependent peoples  themselves to decide what their status shall be. To this end I asked the  Congress last October to provide a means by which the people of Puerto Rico  might choose their form of government and ultimate status with respect to  the United States. I urge, too, that the Congress promptly accede to the  wishes of the people of Hawaii that the Territory be admitted to statehood  in our Union, and that similar action be taken with respect to Alaska as  soon as it is certain that this is the desire of the people of that great  Territory. The people of the Virgin Islands should be given an increasing  measure of self-government.  
1946-315	1946	We have already determined that the Philippine Islands are to be  independent on July 4, 1946. The ravages of war and enemy occupation,  however, have placed a heavy responsibility upon the United States. I urge  that the Congress complete, as promptly and as generously as may be  possible, legislation which will aid economic rehabilitation for the  Philippines. This will be not only a just acknowledgment of the loyalty of  the people of the Philippines, but it will help to avoid the economic chaos  which otherwise will be their heritage from our common war. Perhaps no  event in the long centuries of colonialism gives more hope for the pattern  of the future than the independence of the Philippines.  
1946-316	1946	The District of Columbia, because of its special relation to the Federal  Government, has been treated since 1800 as a dependent area. We should move  toward a greater measure of local self-government consistent with the  constitutional status of the District. We should take adequate steps to  assure that citizens of the United States are not denied their franchise  merely because they reside at the Nation's Capital.  
1946-317	1946	III. THE BUDGET FOR THE FEDERAL PROGRAM  
1946-318	1946	FOR THE FISCAL YEAR 1947  
1946-319	1946	SUMMARY OF THE BUDGET  
1946-320	1946	For the first time since the fiscal year 1930 the Budget for the next  fiscal year will require no increase in the national debt.  
1946-321	1946	Expenditures of all kinds, authorized and recommended, in the next year are  estimated at just above 35.8 billion dollars. Net receipts are estimated at  31.5 billion dollars. The estimated difference of 4.3 billion dollars will  be met by a reduction in the very substantial balance which will be in the  Treasury during the next fiscal year.  
1946-322	1946	A large part of the activities outside defense and war liquidation,  aftermath of war, and international finance, classified as "other  activities" in a following table, is still due to repercussions of the war.  These "other activities" include more than 2 billion dollars for aids to  agriculture and net outlays for the Commodity Credit Corporation-almost  double the expenditures for the same purposes in prewar years. This  increase is due mainly to expenditures for purposes of price stabilization  and price support resulting from the war food production program. Other  increases in this category are due to the fact that certain wartime  agencies now in the process of liquidation are included in this group of  activities. If all expenditures for those activities which are directly or  indirectly related to the war are excluded, the residual expenditures are  below those for corresponding activities in prewar years. In making this  comparison account should be taken of the fact that, while prewar  expenditures were affected by direct relief and work relief for the  unemployed, the postwar budgets are affected by the considerable increase  in pay rates and other increases in costs and prices.  
1946-323	1946	To elaborate, the Budget, as I have remarked above, reflects on both sides  of the ledger the Government's program as recommended by the Executive. It  includes estimates not only of expenditures and receipts for which  legislative authority already exists, but also of expenditures and receipts  for which authorization is recommended.  
1946-324	1946	The Budget total for the next fiscal year, the year that ends on June 30,  1947, is estimated at just above 35.8 billion dollars-about a third of the  budgets for global war, although nearly four times the prewar budgets. This  estimate is based on the assumption that a rapid liquidation of the war  program will be associated with rapid reconversion and expansion of  peacetime production. The total includes net outlays of Government  corporations.  
1946-325	1946	The estimated expenditures in the next and current fiscal year compare as  follows with those of a year of global war and a prewar year:  
1946-326	1946	Total Budget expenditures  
1946-327	1946	Fiscal year: (in millions)  
1946-328	1946	1947 $35, 860  
1946-329	1946	1946 67,229  
1946-330	1946	1945 100, 031  
1946-331	1946	1940 9,252  
1946-332	1946	Although allowances for occupation, demobilization, and defense are  drastically reduced in the fiscal year 1947, they will still amount to 42  percent of the total Budget. The so-called "aftermath of war" expenditures  account for a further 30 percent of the total. The total of all other  programs, which was drastically cut during the war, is increasing again as  liquidation of the war program proceeds and renewed emphasis is placed on  the peacetime objectives of the Government.  
1946-333	1946	On the other side of the ledger, net receipts are estimated at 31.5 billion  dollars. This estimate assumes that all existing taxes will continue all  through the fiscal year 1947. Included are the extraordinary receipts from  the disposal of surplus property.  
1946-334	1946	As a result, estimated expenditures will exceed estimated receipts by 4.3  billion dollars. This amount can be provided by a reduction in the cash  balance in the Treasury. Thus, after a long period of increasing public  debt resulting from depression budgets and war budgets, it is anticipated  that no increase in the Federal debt will be required next year.  
1946-335	1946	FEDERAL BUDGET EXPENDITURES AND BUDGET RECEIPTS  
1946-336	1946	Including net outlays of Government corporations and credit agencies (based  on existing and proposed legislation)  
1946-337	1946	Fiscal year  
1946-338	1946	Expenditures: 1946 1947  
1946-339	1946	Defense, war, and war liquidation $49,000 $15,000  
1946-340	1946	Aftermath of war: Veterans, interest, refunds 10,813 10,793  
1946-341	1946	International finance (including proposed legislation) 2,614 2,754  
1946-342	1946	Other activities 4,552 5,813  
1946-343	1946	Activities based on proposed legislation  
1946-344	1946	(excluding international finance) 2501,500  
1946-345	1946	Total expenditures 67, 229 35, 860  
1946-346	1946	Receipts (net) 38, 60931,513  
1946-347	1946	Excess of expenditures 28,620 4,347  
1946-348	1946	The current fiscal year, 1946, is a year of transition. When the year  opened, in July 1945, we were still fighting a major war, and Federal  expenditures were running at an annual rate of about 100 billion dollars.  By June 1946 that rate will be more than cut in half. The Budget total for  the current fiscal year is now estimated at 67.2 billion dollars, of which  more than two-thirds provides for war and war liquidation. Since net  receipts are estimated at 38.6 billion dollars, there will be an excess of  expenditures of 28.6 billion dollars for the current fiscal year.  
1946-349	1946	For all programs discussed in this Message I estimate the total of Budget  appropriations and authorizations (including reappropriations and permanent  appropriations) at 30,982 million dollars for the fiscal year 1947. Of this  amount, present permanent appropriations are expected to provide 5,755  million dollars, principally for interest. This leaves 24,224 million  dollars to be made available through new appropriations, exclusive of  appropriations to liquidate contract authorizations; 900 million dollars in  new contract authorizations; and 103 million dollars through the  reappropriation of unliquidated balances of previous appropriations. The  appropriations needed to liquidate contract authorizations are estimated at  1,113 million dollars.  
1946-350	1946	In the Budget for the year ahead only over-all estimates are included at  this time for the major war agencies and for net outlays of Government  corporations. Detailed recommendations will be transmitted in the spring  for the war agencies; and the business-type budgets of Government  corporations will likewise be transmitted in accordance with the recently  adopted Government Corporation Control Act.  
1946-351	1946	Similarly, only over-all estimates are provided for new programs  recommended in this Message; detailed recommendations will be transmitted  after authorizing legislation has been enacted. It should be recognized  that many of the estimates for new programs recommended in this Message are  initial year figures. These figures will be affected by the date the  legislation is enacted and by the time needed for getting a program under  way. New programs, such as that for a national research agency, will  require larger amounts in later years. The estimates exclude major elements  of the proposed national health program since the greater part of these  will be covered by expenditures from trust funds.  
1946-352	1946	The Budget total includes expenditures for capital outlay as well as for  current operations. An estimated 1,740 million dollars will be expended in  the fiscal year 1947 for direct Federal public works and for loans and  grants for public works.  
1946-353	1946	THE ECONOMIC IMPACT Of THE LIQUIDATION  
1946-354	1946	OF THE WAR PROGRAM  
1946-355	1946	Government programs are of such importance in the development of production  and employment opportunities--domestic and international--that it has  become essential to formulate and consider the Federal Budget in the light  of the Nation's budget as a whole. The relationship between the receipts,  expenditures, and savings of consumers, business, and government is shown  in the accompanying table.  
1946-356	1946	Considering the whole Nation, total expenditures must equal the total  receipts, because what any individual or group spends becomes receipts of  other individuals or groups. Such equality can be achieved on either a high  level of incomes or on a low or depression level of incomes.  
1946-357	1946	Tremendous orders for munitions during the war shifted production and  employment into high gear. Total goods produced and services rendered for  private as well as for Government purposes--the Nation's budget-reached  about 200 billion dollars in the calendar year 1944. Federal, State, and  local government expenditures represented half of this total.  
1946-358	1946	Corresponding estimates for the past 3 months depict the national economy  in the process of demobilization and reconversion.  
1946-359	1946	The wartime annual rate of Federal expenditures has been reduced by 32  billion dollars, while the Nation's budget total has dropped only half as  much. The drop in total value of production and services has been less  drastic because increasing private activities have absorbed in large  measure the manpower and materials released from war production and war  services.  
1946-360	1946	The largest increase in private activities has occurred in business  investments, which include residential and other construction, producers'  durable equipment, accumulation of inventories, and net exports. Under  conditions of global war, expenditures for private construction and  equipment were held to a minimum and inventories were depleted. With the  beginning of reconversion these developments have been reversed.  Residential construction and outlays for plant and equipment are on the  increase; inventories, too, are being replenished. International  transactions (excluding lend-lease and international relief which are  included under war expenditures) showed an import surplus under conditions  of global war. In the past 3 months private exports have been slightly in  excess of imports, for the first time since 1941.  
1946-361	1946	Consumers' budgets show a significant change. On the income side, their  total has declined but little because the reduction in "take-home" pay of  war workers is, to a large extent, offset for the time being by the  mustering-out payments received by war veterans and by unemployment  compensation received by the unemployed. On the expenditure side, however,  consumers' budgets, restricted during the war, have in creased  substantially as a result of the fact that scarce goods are beginning to  appear on the market and wartime restraints are disappearing. Thus,  consumers' current savings are declining substantially from the  extraordinarily high wartime rate and some wartime savings are beginning to  be used for long-delayed purchases.  
1946-362	1946	THE GOVERNMENT'S BUDGET AND THE NATION'S BUDGET  
1946-363	1946	Calendar year 1944 and October-December 1945  
1946-364	1946	Oct.-Dec. 1945 (start of  
1946-365	1946	reconversion) (in seasonally  
1946-366	1946	Calendar Year 1944 (global war) adjusted annual rates)  
1946-367	1946	______________________ ____________________  
1946-368	1946	Excess Excess  
1946-369	1946	Expendi- (+), def- Expendi- (+),def-  
1946-370	1946	Economic Group Receipts tures icit(-) Receipts tures icit(-) CONSUMERS  
1946-371	1946	Income after taxes $134 ....... ...... $132 ...... .......  
1946-372	1946	Expenditures ......$98............$107 .......  
1946-373	1946	Excess of receipts, savings (+) ...... ...... +$35 ...... ...... +$25  BUSINESS  
1946-374	1946	Undistributed profits and reserves $13 ...... ...... $9 ...... ......  
1946-375	1946	Gross capital formation:  
1946-376	1946	Domestic ...... $4 ...... ...... $15 ......  
1946-377	1946	Net exports1 ......--2............1......  
1946-378	1946	Total, gross capital formation ......2............16......  
1946-379	1946	Excess of receipts (+) or capital  
1946-380	1946	formation (--) ...... ...... +$11 ...... ...... --$7  
1946-381	1946	STATE AND LOCAL GOVERNMENT  
1946-382	1946	Receipts from the public, other  
1946-383	1946	than borrowing $10 ...... ...... $11 ...... ......  
1946-384	1946	Payments to the public ...... $8............$9......  
1946-385	1946	Excess of receipts (+) ............+$2............+$2  
1946-386	1946	FEDERAL GOVERNMENT  
1946-387	1946	Receipts from the public, other  
1946-388	1946	than borrowing $48 ...... ....... $44 ...... ......  
1946-389	1946	Payments to the public ......$96 .............$64......  
1946-390	1946	Excess of payments (--) ............--$48............. --$20  
1946-391	1946	Less: Adjustments2 $7 $7 ....... $14 $14 .......  
1946-392	1946	TOTAL: GROSS NATIONAL PRODUCT  
1946-393	1946	Receipts $198 ....... ...... $182 ...... ......  
1946-394	1946	Expenditures ......$198............ $182......  
1946-395	1946	Balance ...... ...... 0 ...... ...... ......  
1946-396	1946	1 Excludes exports for lend-lease and relief which are included in Federal  Government expenditures.  
1946-397	1946	2 Mainly government expenditures for other than goods and services, such as  mustering-out pay and unemployment compensation.  
1946-398	1946	Unemployment has increased less than was expected during this first period  of demobilization and reconversion. It is true that 6 million men and women  have been discharged from the armed forces since May 1945 and more than 5  million have been laid off from war work. On the other hand, more than a  million civilians have been enlisted in the armed forces, a considerable  number of war veterans have not immediately sought jobs, and many war  workers, especially women, have withdrawn from the labor force. In  addition, many industries, and especially service trades which were  undermanned during the war, are beginning now, for the first time in years,  to recruit an adequate labor force. The reduced workweek has also  contributed to the absorption of those released from war service and war  work.  
1946-399	1946	In general, the drastic cut in war programs has thrown the economy into  lower gear; it has not thrown it out of gear. Our economic machine  demonstrates remarkable resiliency, although there are many difficulties  that must still be overcome. The rapid termination of war contracts, prompt  clearance of unneeded Government-owned equipment from private plants, and  other reconversion policies have greatly speeded up the beginning of  peacetime work in reconverted plants.  
1946-400	1946	Although the first great shock of demobilization and war-work termination  has thus been met better than many observers expected, specific industries  and specific regions show much unevenness in the progress of reconversion.  
1946-401	1946	The Quarterly Report of the Director of War Mobilization and Reconversion  analyzes the difficulties in recruiting personnel and obtaining materials  that hamper reconversion in certain industries and proposes policies to  deal with these situations. The lack of adequate housing is one of the main  factors checking the flow of workers into areas where job opportunities  exist.  
1946-402	1946	FEDERAL REVENUE, BORROWING, AND THE  
1946-403	1946	PUBLIC DEBT  
1946-404	1946	I. FINANCIAL REQUIREMENTS AND TAX POLICY  
1946-405	1946	Recommendations for tax legislation should be considered not only in the  light of the financial requirements of the ensuing year, but also in the  light of future years' financial requirements and a full consideration of  economic conditions.  
1946-406	1946	Expenditures are estimated at nearly 36 billion dollars in the fiscal year  1947; they can hardly be expected to be reduced to less than 25 billion  dollars in subsequent years. Net receipts in the fiscal year 1947 are  estimated at 31.5 billion dollars.  
1946-407	1946	Included in this estimate are 2 billion dollars of receipts from disposal  and rental of surplus property and 190 million dollars of receipts from  renegotiation of wartime contracts. These sources of receipts will  disappear in future years. Tax collections for the fiscal year 1947 also  will not yet fully reflect the reduction in corporate tax liabilities  provided in the Revenue Act of 1945. If the extraordinary receipts from the  disposal of surplus property and renegotiation of contracts be disregarded,  and if the tax reductions adopted in the Revenue Act of 1945 were fully  effective, present tax rates would yield about 27 billion dollars.  
1946-408	1946	These estimates for the fiscal year 1947 are based on the assumption of  generally favorable business conditions but not on an income reflecting  full employment and the high productivity that we hope to achieve. In  future years the present tax system, in conjunction with a full employment  level of national income, could be expected to yield more than 30 billion  dollars, which is substantially above the anticipated peacetime level of  expenditures.  
1946-409	1946	In view of the still extraordinarily large expenditures in the coming year  and continuing inflationary pressures, I am making no recommendation for  tax reduction at this time.  
1946-410	1946	We have already had a substantial reduction in taxes from wartime peaks.  The Revenue Act of 1945 was a major tax-reduction measure. It decreased the  total tax load by more than one-sixth, an amount substantially in excess of  the reductions proposed by the Secretary of the Treasury to congressional  tax committees in October 1945. These proposed reductions were designed to  encourage reconversion and peacetime business expansion.  
1946-411	1946	The possibility of further tax reductions must depend on the budgetary  situation and the economic situation. The level of anticipated expenditures  for the fiscal year 1947 and the volume of outstanding public debt require  the maintenance of large revenues.  
1946-412	1946	Moreover, inflationary pressures still appear dangerously powerful, and  ill-advised tax reduction would operate to strengthen them still further.  
1946-413	1946	My decision not to recommend additional tax reductions at this time is made  in the light of existing economic conditions and prospects.  
1946-414	1946	2. BORROWING AND THE PUBLIC DEBT  
1946-415	1946	The successful conclusion of the Victory loan marked the end of war  borrowing and the beginning of the transition to postwar debt management.  
1946-416	1946	Because of the success of the Victory loan, I am happy to report that the  Treasury will not need to borrow any new money from the public during the  remainder of the present fiscal year except through regular sales of  savings bonds and savings notes. Furthermore, a part of the large cash  balance now in the Treasury will be used for debt redemption so that the  public debt which now amounts to about 278 billion dollars will decrease by  several billion dollars during the next 18 months. The present statutory  debt limit of 300 billion dollars will provide an ample margin for all of  the public-debt transactions through the fiscal year 1947. The net effect  of the excess of expenditures and debt redemption on the Treasury cash  balance, as compared with selected previous years, is shown in the  following table:  
1946-417	1946	EXCESS Of BUDGET EXPENDITURES, THE PUBLIC DEBT, AND THE TREASURY CASH  BALANCE IN SELECTED YEARS  
1946-418	1946	Excess of At end of period  
1946-419	1946	Budget ex- _____________________  
1946-420	1946	penditures Public Cash bal-  
1946-421	1946	Fiscal Year over receipts debt ance  
1946-422	1946	1940 $3. 9 $43. 0 $1. 9  
1946-423	1946	1945 53. 6 258. 7 24. 7 1946:  
1946-424	1946	July-Dec. 1945 18. 1 278. 1 26. 0  
1946-425	1946	Jan.-June 1946 10. 5 275. 0 11. 9  
1946-426	1946	1947 4. 3 271. 0 3. 2  
1946-427	1946	Although the public debt is expected to decline, a substantial volume of  refinancing will be required, because of the large volume of maturing  obligations. Redemptions of savings bonds also have been running high in  recent months and are expected to remain large for some time. The issuance  of savings bonds will be continued. These bonds represent a convenient  method of investment for small savers, and also an anti-inflationary method  of refinancing. Government agencies and trust funds are expected to buy  about 2.5 billion dollars of Government securities during the next 6  months, and 2.8 billion dollars more during the fiscal year 1947. Through  these and other debt operations, the distribution of the Federal debt among  the various types of public and private owners will change, even though the  total is expected to decline.  
1946-428	1946	The interest policies followed in the refinancing operations will have a  major impact not only on the provision for interest payments in future  budgets, but also on the level of interest rates prevailing in private  financing. The average rate of interest on the debt is now a little under 2  percent. Low interest rates will be an important force in promoting the  full production and full employment in the postwar period for which we are  all striving. Close wartime cooperation between the Treasury Department and  the Federal Reserve System has made it possible to finance the most  expensive war in history at low and stable rates of interest. This  cooperation will continue.  
1946-429	1946	No less important than the level of interest rates paid on the debt is the  distribution of its ownership. Of the total debt, more than half represents  direct savings of individuals or investments of funds received from  individual savings by life insurance companies, mutual savings banks,  savings and loan associations, private or Government trust funds, and other  agencies.  
1946-430	1946	Most of the remaining debt--more than 100 billion dollars--is held by the  commercial banks and the Federal Reserve banks. Heavy purchases by the  banks were necessary to provide adequate funds to finance war expenditures.  A considerable portion of these obligations are short-term in character and  hence will require refinancing in the coming months and years. Since they  have been purchased out of newly created bank funds, continuance of the  present low rates of interest is entirely appropriate. To do otherwise  would merely increase bank profits at the expense of the taxpayer.  
1946-431	1946	The 275-billion dollar debt poses a problem that requires careful  consideration in the determination of financial and economic policies. We  have learned that the problem, serious as it is, can be managed. Its  management will require determined action to keep our Federal Budget in  order and to relate our fiscal policies to the requirements of an expanding  economy. The more successful we are in achieving full production and full  employment the easier it will be to manage the debt and pay for the debt  service. Large though the debt is, it is within our economic capacity. The  interest charges on it amount to but a small proportion of our national  income. The Government is determined, by a resolute policy of economic  stabilization, to protect the interests of the millions of American  citizens who have invested in its securities.  
1946-432	1946	During the past 6 months the net revenue receipts of the Federal Government  have been about 20 billion dollars, almost as much as during the closing 6  months of 1944 when the country was still engaged in all-out warfare. The  high level of these receipts reflects the smoothness of the reconversion  and particularly the strength of consumer demand. But the receipts so far  collected, it must be remembered, do not reflect any of the tax reductions  made by the Revenue Act of 1945. These reductions will not have their full  effect on the revenue collected until the fiscal year 1948.  
1946-433	1946	It is good to move toward a balanced budget and a start on the retirement  of the debt at a time when demand for goods is strong and the business  outlook is good. These conditions prevail today. Business is good and there  are still powerful forces working in the direction of inflation. This is  not the time for tax reduction.  
1946-434	1946	RECOMMENDATIONS FOR SPECIFIC FEDERAL ACTIVITIES  
1946-435	1946	1. WAR LIQUIDATION AND NATIONAL DEFENSE  
1946-436	1946	(a) War expenditures.  
1946-437	1946	The fiscal year 1947 will see a continuance of war liquidation and  occupation. During this period we shall also lay the foundation for our  peacetime system of national defense.  
1946-438	1946	In the fiscal year that ended on June 30, 1945, almost wholly a period of  global warfare, war expenditures amounted to 90.5 billion dollars. For the  fiscal year 1946 war expenditures were originally estimated at 70 billion  dollars. That estimate was made a year ago while we were still engaged in  global warfare. After victory over Japan this estimate was revised to 50.5  billion dollars. Further cut-backs and accelerated demobilization have made  possible an additional reduction in the rate of war spending. During the  first 6 months 32.9 billion dollars were spent. It is now estimated that  16.1 billion dollars will be spent during the second 6 months, or a total  of 49 billion dollars during the whole fiscal year.  
1946-439	1946	For the fiscal year 1947 it is estimated, tentatively, that expenditures  for war liquidation, for occupation, and for national defense will be  reduced to 15 billion dollars. The War and Navy Departments are expected to  spend 13 billion dollars; expenditures of other agencies, such as the  United States Maritime Commission, the War Shipping Administration, and the  Office of Price Administration, and payments to the United Nations Relief  and Rehabilitation Administration are estimated at 3 billion dollars.  Allowing for estimated net receipts of 1 billion dollars arising from war  activities of the Reconstruction finance Corporation, the estimated total  of war expenditures is 15 billion dollars. At this time only a tentative  break-down of the total estimate for war and defense activities can be  indicated.  
1946-440	1946	An expenditure of 15 billion dollars for war liquidation, occupation, and  national defense is a large sum for a year which begins 10 months after  fighting has ended. It is 10 times our expenditures for defense before the  war; it amounts to about 10 percent of our expected national income. This  estimate reflects the immense job that is involved in winding up a global  war effort and stresses the great responsibility that victory has placed  upon this country. The large expenditures needed for our national defense  emphasize the great scope for effective organization in furthering economy  and efficiency. To this end I have recently recommended to the Congress  adoption of legislation combining the War and Navy Departments into a  single Department of National Defense.  
1946-441	1946	A large part of these expenditures is still to be attributed to the costs  of the war. Assuming, somewhat arbitrarily, that about one-half of the  15-billion-dollar outlay for the fiscal year 1947 is for war liquidation,  aggregate expenditures by this Government for the second World War are now  estimated at 347 billion dollars through June 30, 1947. Of this, about 9  billion dollars will have been recovered through renegotiation and sale of  surplus property by June 30, 1947; this has been reflected in the estimates  of receipts.  
1946-442	1946	Demobilization and strength of armed forces.--Demobilization of our armed  forces is proceeding rapidly. At the time of victory in Europe, about 12.3  million men and women were in the armed forces; 7.6 million were overseas.  By the end of December 1945 our armed forces had been reduced to below 7  million. By June 30, 1946, they will number about 2.9 million, of whom 1.8  million will be individuals enlisted and inducted after VE-day.  Mustering-out pay is a large item of our war liquidation expense; it will  total 2.5 billion dollars in the fiscal year 1946, and about 500 million  dollars in the fiscal year 1947.  
1946-443	1946	In the fiscal year 1947 the strength of our armed forces will still be  above the ultimate peacetime level. As I have said, War and Navy Department  requirements indicate a strength of about 2 million in the armed forces a  year from now. This is necessary to enable us to do our share in the  occupation of enemy territories and in the preservation of peace in a  troubled world. Expenditures for pay, subsistence, travel, and  miscellaneous expenses of the armed forces, excluding mustering-out pay,  are estimated at 5 billion dollars.  
1946-444	1946	Contract settlement and surplus property disposal.--The winding up of war  procurement is the second most important liquidation job. By the end of  November a total of 301,000 prime contracts involving commitments of 64  billion dollars had been terminated. Of this total, 67,000 contracts with  commitments of 35 billion dollars remained to be settled. Termination  payments on these contracts are estimated at about 3.5 billion dollars. It  is expected that more than half of these terminated contracts will be  settled during the current fiscal year, leaving payments of about 1.5  billion dollars for the fiscal year 1947.  
1946-445	1946	Another important aspect of war supply liquidation is the disposal of  surplus property. Munitions, ships, plants, installations, and supplies,  originally costing 50 billion dollars or more, will ultimately be declared  surplus. The sale value of this property will be far less than original  cost and disposal expenses are estimated at 10 to 15 cents on each dollar  realized. Disposal units within existing agencies have been organized to  liquidate surplus property under the direction of the Surplus Property  Administration. Overseas disposal activities have been centralized in the  State Department to permit this program to be carried on in line with  over-all foreign policy. Thus far only about 13 billion dollars of the  ultimate surplus, including 5 billion dollars of unsalable aircraft, has  been declared. Of this amount, 2.3 billion dollars have been disposed of,  in sales yielding 600 million dollars. The tremendous job of handling  surplus stocks will continue to affect Federal expenditures and receipts  for several years. The speed and effectiveness of surplus disposal  operations will be of great importance for the domestic economy as well as  for foreign economic policies.  
1946-446	1946	War supplies, maintenance, and relief.-Adequate provision for the national  defense requires that we keep abreast of scientific and technical advances.  The tentative estimates for the fiscal year 1947 make allowance for  military research, limited procurement of weapons in the developmental  state, and some regular procurement of munitions which were developed but  not mass-produced when the war ended. Expenditures for procurement and  construction will constitute one-third or less of total defense outlays,  compared to a ratio of two-thirds during the war years.  
1946-447	1946	The estimates also provide for the maintenance of our war-expanded naval  and merchant fleets, military installations, and stocks of military  equipment and supplies. Our naval combatant fleet is three times its  pre-Pearl Harbor tonnage. Our Merchant Marine is five times its prewar  size. The War Department has billions of dollars worth of equipment and  supplies. Considerable maintenance and repair expense is necessary for the  equipment which we desire to retain in active status or in war reserve.  Expenses will be incurred for winnowing the stocks of surpluses, for  preparing lay-up facilities for the reserve fleets, and for storage of  reserve equipment and supplies.  
1946-448	1946	Military expenditures .in the current fiscal year include 650 million  dollars for civilian supplies for the prevention of starvation and disease  in occupied areas. Expenditures on this account will continue in the fiscal  year 1947. The war expenditures also cover the expenses of civilian  administration in occupied areas.  
1946-449	1946	During the war, 15 cents of each dollar of our war expenditures was for  lend-lease aid. With lend-lease terminated, I expect the direct operations  under this program to be substantially completed in the current fiscal  year. The expenditures estimated for the fiscal year 1947 under this  program are mainly interagency reimbursements for past transactions.  
1946-450	1946	Relief and rehabilitation expenditures are increasing. It is imperative  that we give all necessary aid within our means to the people who have  borne the ravages of war. I estimate that in the fiscal year 1946  expenditures for the United Nations Relief and Rehabilitation  Administration will total 1.3 billion dollars and in the following year 1.2  billion dollars. Insofar as possible, procurement for this purpose will be  from war surpluses.  
1946-451	1946	(b) Authorizations for war and national defense.  
1946-452	1946	During the war, authorizations and appropriations had to be enacted well in  advance of obligation and spending to afford ample time for planning of  production by the procurement services and by industry. Thus our cumulative  war program authorized in the period between July 1, 1940, and July 1,  1945, was 431 billion dollars, including net war commitments of Government  corporations. Expenditures against those authorizations totaled 290 billion  dollars. This left 141 billion dollars in unobligated authorizations and  unliquidated obligations.  
1946-453	1946	With the end of fighting, it became necessary to adjust war authorizations  to the requirements of war liquidation and continuing national defense.  Intensive review of the war authorizations by both the executive and the  legislative branches has been continued since VJ-day. As a result, the  authorized war program is being brought more nearly into line with  expenditures.  
1946-454	1946	Recisions and authorizations through the fiscal year 1946.--Readjusting the  war program, as the Congress well knows, is not an easy task.  Authorizations must not be too tight, lest we hamper necessary operations;  they must not be too ample, lest we lose control of spending. Last  September, I transmitted to the Congress recommendations on the basis of  which the Congress voted H.R. 4407 to repeal 50.3 billion dollars of  appropriations and authorizations. I found it necessary to veto this bill  because it was used as a vehicle for legislation that would impair the  reemployment program. However, in order to preserve the fine work of the  Congress on the recisions, I asked the Director of the Bureau of the Budget  to place the exact amounts indicated for repeal in a nonexpendable reserve,  and to advise the departments and agencies accordingly. This has been  done.  
1946-455	1946	In accord with Public Law 132 of the Seventy-ninth Congress, I have  transmitted recommendations for additional rescissions for the current  fiscal year of appropriations amounting to 5.8 billion dollars and of  contract authorizations totaling 420 million dollars. The net reduction in  authority to obligate will be 5.0 billion dollars, because, of the  appropriations, 1.2 billion dollars will have to be restored in subsequent  years to liquidate contract authorizations still on the books.  
1946-456	1946	The appropriations recommended for repeal include 2,827 million dollars for  the Navy Department, 1,421 million dollars for the War Department, 850  million dollars for lend-lease, 384 million dollars for the War Shipping  Administration, and 260 million dollars for the United States Maritime  Commission. The contract authorizations proposed for repeal are for the  Maritime Commission.  
1946-457	1946	In addition, there are unused tonnage authorizations for construction of  naval vessels now valued at 5.4 billion dollars. In September 1945, I  suggested that this authority be reviewed by the appropriate committees of  the Congress, and the Congress has moved to bar construction under these  authorizations during the remainder of the fiscal year 1946. I propose to  continue this prohibition in the Navy budget estimates for the fiscal year  1947 and now renew my recommendation that legislation be enacted at the  earliest time to dear the statute books of these authorizations.  
1946-458	1946	The amounts indicated for repeal in H.R. 4407 and the further rescissions  which I have recommended, excluding duplications and deferred cash payments  on existing authorizations, represent a cut in the authorized war program  of 60.8 billion dollars. The war authorizations will also be reduced 3'7  billion dollars by carrying receipts of revolving accounts to surplus, by  lapses, and by cancellation and repayment of commitments of the Government  war corporations.  
1946-459	1946	On the other hand, supplemental appropriations of 600 million dollars will  be required for the United Nations Relief and Rehabilitation  Administration.  
1946-460	1946	In the net, it is estimated that the cumulative authorized war and national  defense program will amount to 368 billion dollars on June 30, 1946.  Expenditures of 49 billion dollars during the fiscal year 1946 will have  pushed cumulative expenditures to 339 billion dollars. The unexpended  balances will be down to 28 billion dollars on June 30, 1946.  
1946-461	1946	New authorizations for national defense and war liquidation in the fiscal  year 1947.-The expenditures of 15 billion dollars for national defense and  war liquidation in the fiscal year 1947 will be partly for payment of  contractual obligations incurred in the past, and partly for the payment of  new obligations. The unexpended balances on June 30, 1946, will be  scattered among hundreds of separate appropriations. Thus, while some  appropriation accounts will have unused balances, others will require  additional appropriations.  
1946-462	1946	It is estimated that authorizations to incur new obligations of 11,772  million dollars will be needed during the fiscal year 1947, mainly for the  War and Navy Departments. Of the required authorizations, 11,365 million  dollars will be in new appropriations, 400 million dollars in new contract  authority, and 7 million dollars in reappropriations of unobligated  balances. In addition, appropriations of 825 million dollars will be needed  to liquidate obligations under existing contract authorizations.  
1946-463	1946	Taking into account the tentative authorizations and expenditures estimated  for the fiscal year 1947, and offsets of 3 billion dollars in war  commitments of Government corporations, the cumulative authorized war and  national defense program on June 30, 1947, will be 376 billion dollars;  total expenditures, 354 billion dollars; and unexpended balances, 22  billion dollars.  
1946-464	1946	The 22 billion dollars of unexpended balances tentatively indicated as of  June 30, 1947, comprise both unobligated authorizations and unliquidated  obligations. Most of the unliquidated obligations result from transactions  booked during the war years. A large part of the 22 billion dollars would  never be spent even if not repealed, for the appropriations will lapse in  due course. For example, several billion dollars of these unliquidated  obligations represent unsettled inter- and intra-departmental agency  accounts for war procurement. Legislation is being requested to facilitate  the adjustment of some of these inter-agency accounts. Another 6 billion  dollars is set aside for contract termination payments. If contract  settlement costs continue in line with recent experience, it is likely that  part of the 6 billion dollars will remain unspent.  
1946-465	1946	On the other hand, some of the 22 billion dollars would be available for  obligation and expenditure unless impounded. In certain appropriations,  such as those for long-cycle procurement, considerable carry-over of  unliquidated obligations into future years is to be expected and is  necessary. However, substantial further rescissions can and should be made  when the war liquidation program tapers off and budgetary requirements for  national defense are clarified. As I have said, I shall continue to review  the war authorizations and from time to time recommend excess balances for  repeal.  
1946-466	1946	As in recent years, detailed recommendations concerning most appropriations  for the national defense program are postponed until the spring. In  connection with the war activities of the United States Maritime Commission  and certain other agencies, however, I now make specific recommendations  for the fiscal year 1947. No additional authorizations or appropriations  will be necessary for the Maritime Commission since sufficient balances  will be left after the above-mentioned rescissions to carry out the program  now contemplated for the fiscal year 1947.  
1946-467	1946	2. AFTERMATH OF WAR  
1946-468	1946	Nearly one-third--11 billion dollars--of estimated Federal expenditures in  the fiscal year 1947 will be for purposes that are largely inherited from  the war--payments to veterans, interest on the Federal debt, and refunds of  taxes.  
1946-469	1946	(a) For veterans.  
1946-470	1946	"Veterans' pensions and benefits" has become one of the largest single  categories in the Federal Budget. I am recommending for this purpose total  appropriations of 4,787 million dollars for the fiscal year 1947.  Expenditures in the fiscal year are estimated, under present legislation,  at 4,208 million dollars. These expenditures will help our veterans through  their readjustment period and provide lasting care for those who were  disabled.  
1946-471	1946	The Congress has provided unemployment allowances for veterans during their  readjustment period. Expenditure of 850 million dollars for this purpose is  anticipated for the fiscal year 1947. In addition, readjustment allowances  for self-employed veterans are expected to cost 340 million dollars in the  fiscal year 1947.  
1946-472	1946	On May 28, 1945, in asking the Congress to raise the ceiling on benefits  for civilian unemployed to not less than 25 dollars a week during the  immediate reconversion period, I suggested that the Congress also consider  liberalizing veterans' allowances. Elsewhere in this Message I reiterate my  recommendation with respect to emergency unemployment compensation. I also  recommend increasing veterans' unemployment allowances from 20 dollars to  25 dollars a week. This would involve additional expenditures estimated at  approximately 220 million dollars for the fiscal year.  
1946-473	1946	Included in the 1947 Budget is an expenditure of 535 million dollars for  veterans' education under provisions of the Servicemen's Readjustment Act.  This amount includes both tuition expenses and maintenance allowances. It  is expected that half a million veterans will be enrolled in our schools  and colleges during the year.  
1946-474	1946	The ultimate benefit which veterans receive from the loan guarantee  provisions of the Servicemen's Readjustment Act depends largely on the  success of our stabilization program in restraining building costs and real  estate values. Under the revised procedure contained in recent amendments,  the administrative workload will be minimized by the almost complete  transfer of authority for approving the guarantees to private lending  agencies and private appraisers designated by the Veterans Administration.  This authority carries with it the responsibility for restricting the  guarantees to loans on reasonably valued properties. Costs of the program,  other than for administration, are estimated at 21 million dollars in the  fiscal year 1947.  
1946-475	1946	Pensions for veterans will require expenditures estimated at 1,748 million  dollars for the fiscal year 1947. Two-thirds of this amount will be  received by veterans of the war which we have just won. This figure  includes 55 million dollars of increased pensions for student-veterans in  our vocational rehabilitation program. In addition, 170 million dollars  will be expended in transfers to the National Service Life Insurance fund  from general and special accounts.  
1946-476	1946	Expenditures under the appropriation for salaries and expenses of the  Veterans Administration are estimated at 528 million dollars in the fiscal  year 1947. This includes 260 million dollars for medical care and the  operation of some 103,000 hospital and domiciliary beds.  
1946-477	1946	A separate appropriation for hospital and domiciliary facilities,  additional to the total for veterans' pensions and benefits, covers  construction that will provide some 13,000 hospital beds as part of the  500-million dollar hospital construction program already authorized by the  Congress. The estimated expenditures of 130 million dollars for this  purpose are classified in the Budget as part of the general public works  program for the next fiscal year.  
1946-478	1946	(b) For interest.  
1946-479	1946	Interest payments on the public debt are estimated at 5 billion dollars in  the fiscal year 1947, an increase of 250 million dollars from the revised  estimate for the current fiscal year. This increase reflects chiefly  payment of interest on additions to the debt this year. Assuming  continuance of present interest rates, the Government's interest bill is  now reaching the probable postwar level.  
1946-480	1946	(c) For refunds.  
1946-481	1946	An estimated total of 1,585 million dollars of refunds will be paid to  individuals and corporations during the fiscal year 1947. Slightly over  half of this amount, or 800 million dollars, will be accessory to the  simplified pay-as-you-go method of tax collection, and will be the result  of overwithholding and over declaration of expected income. Most of the  remainder will arise from loss and excess-profits credit carrybacks,  recomputed amortization on war plants, and special relief from the excess  profits tax.  
1946-482	1946	This category of expenditures is thus losing gradually its  "aftermath-of-war" character, and by the succeeding year will reflect  almost entirely the normal operation of loss carry-backs and current tax  collection.  
1946-483	1946	3. AGRICULTURAL PROGRAMS  
1946-484	1946	The agricultural programs contemplated for the fiscal year 1947 are those  which are essential for the provision of an adequate supply of food and  other agricultural commodities with a fair return to American farmers. To  support these objectives, expenditures by the Department of Agriculture  estimated at 784 million dollars from general and special accounts will be  required in the fiscal year 1947. This compares with estimated expenditures  of 676 million dollars in 1946. These figures exclude expenditures by the  Department of Agriculture on account of lend-lease, the United Nations  Relief and Rehabilitation Administration, and other war expenditures. The  expenditure for the fiscal year 1947 is composed of 553 million dollars for  "aids to agriculture," 35 million dollars for general public works, and 196  million dollars for other services of the Department.  
1946-485	1946	Net outlays for the price stabilization, price support, and other programs  of the Commodity Credit Corporation are expected to increase from about 750  million dollars in the fiscal year 1946 to about 1,500 million dollars in  1947. Cash advances made on loans by the farm Security Administration and  the Rural Electrification Administration are expected to amount to 266  million dollars in the fiscal year 1946 and 351 million dollars in 1947;  and after receipts from principal and interest are taken into account, net  loan expenditures of these two agencies will amount to 120 and 209 million  dollars in the two fiscal years.  
1946-486	1946	To provide for the expenditures from general and special accounts, I  recommend for the fiscal year 1947 appropriations of million dollars  (including the existing permanent appropriation of an amount equal to 30  percent of estimated annual customs receipts) and a reappropriation of 88  million dollars of prior-year balances from customs receipts. In addition  there is a recommended authorization of 367.5 million dollars for borrowing  from the Reconstruction finance Corporation for the loan programs of the  farm Security Administration and the Rural Electrification Administration.  It is expected that the operations of the Commodity Credit Corporation will  be financed during the coming year through the 500 million dollars of  lend-lease funds which the Congress has earmarked for price support  purposes, a supplemental appropriation to restore impaired capital of the  Corporation, and the borrowing authority of the Corporation.  
1946-487	1946	Some detailed recommendations follow for major agricultural programs.  
1946-488	1946	Conservation and use of land.--I am recommending that 270 million dollars  be appropriated for "conservation and use of agricultural land  resources"--the so-called AAA program--for the fiscal year 1947, compared  with 356 million dollars in the current year. This reduction of 86 million  dollars is in large part accounted for by elimination of the wartime flax  production incentive project and other nonrecurring items; the proposed  reduction in normal activities is less than 33 million dollars.  
1946-489	1946	For the past several years, this program has consisted largely of payments  to farmers for application of fertilizer and other approved soil management  practices. I am convinced that farmers generally are now fully alert to the  benefits, both immediate and long-term, which they derive from the  practices encouraged by this program. I believe, therefore, that this  subsidization should continue to be reduced.  
1946-490	1946	Rural electrification.--It is proposed that the loan authorization for the  Rural Electrification Administration for the fiscal year 1947 be increased  from 200 million dollars to 250 million dollars. During the war period, REA  was limited by the scarcity of materials and manpower. But that situation  is rapidly changing, and the REA program, which was materially stepped up  for the fiscal year 1946, can be increased still more. It is my belief that  a feasible and practical rural electrification program should be carried  forward as rapidly as possible. This will involve total loans of  approximately 1,800 million dollars over the next 10 years, much of which  will be repaid during that period.  
1946-491	1946	Other programs.--It is recommended that the continuing forest  land-acquisition program be resumed at the rate of 3 million dollars  annually, which is about the minimum rate at which this program can be  economically carried on. The lands involved in this program can contribute  fully to the national welfare only when brought into the national forest  system for protection and development.  
1946-492	1946	Such programs as those of the farm Security Administration and the farm  Credit Administration are estimated to be continued during the fiscal year  1947 at about the same level as in the fiscal year 1946. Recent action by  the Congress has Permitted some expansion of the school lunch program. I  hope it will be continued and expanded. The budgets of the Federal Crop  Insurance Corporation and the federal farm Mortgage Corporation will be  transmitted in the spring under the terms of the Government Corporation  Control Act.  
1946-493	1946	4. TRANSPORTATION  
1946-494	1946	Transportation is one of the major fields for both public and private  investment. Our facilities for transportation and communication must be  constantly improved to serve better the convenience of the public and to  facilitate the sound growth and development of the whole economy.  
1946-495	1946	Federal capital outlays for transportation facilities are expected to  approximate 519 million dollars in the fiscal year 1947. State and local  governments may spend 400 million dollars. Private investment, over half of  it by railways, may approach 1,150 million dollars.  
1946-496	1946	The Congress has already taken steps for the resumption of work on  improvement of rivers and harbors and on the construction of new  Federal-aid highways. Much needed work on airports can begin when the  Congress enacts legislation now in conference between the two Houses.  
1946-497	1946	The Federal expenditure estimates for the fiscal year 1947 include 53  million dollars for new construction in rivers, harbors, and the Panama  Canal and 291 million dollars for highways and grade-crossing elimination,  assuming that the States expend some 275 million dollars on the Federal-aid  system. Additional expenditures for highways totaling 36 million dollars  are anticipated by the forest Service, National Park Service, and the  Territory of Alaska. Civil airways and airports will involve expenditures  of 35 million dollars under existing authority. Additional Federal  expenditures exceeding 20 million dollars (to be matched by States and  municipalities) may be made during the fiscal year 1947 under the airport  legislation now in conference between the two Houses of the Congress.  
1946-498	1946	The United States now controls almost two-thirds of the world's merchant  shipping, most of it Government-owned, compared with little more than  one-seventh of the world's tonnage in 1939. This places a heavy  responsibility upon the Nation to provide for speedy and efficient world  commerce as a contribution to general economic recovery.  
1946-499	1946	The estimates for the United States Maritime Commission and War Shipping  Administration provide for the transition of shipping operation from a war  to a peace basis; the sale, chartering, or lay-up of much of the war-built  fleet; and for a program of ship construction of some 84 million dollars in  the fiscal year 1947 to round out the merchant fleet for peacetime use.  
1946-500	1946	Federal aids, subsidies, and regulatory controls for transportation should  follow the general principle of benefiting the national economy as a whole.  They should seek to improve the transportation system and increase its  efficiency with resulting lower rates and superior service. Differential  treatment which benefits one type of transportation to the detriment of  another should be avoided save when it is demonstrated clearly to be in the  public interest.  
1946-501	1946	5. RESOURCE DEVELOPMENT  
1946-502	1946	Total capital outlays for resource development are estimated at 653 million  dollars in the fiscal year 1947 as compared with 452 million dollars in  1946. These include capital expenditures by the Rural Electrification  Administration and expenditures for resource development by other  organizational units in the Department of Agriculture which are also  mentioned above under "agricultural programs."  
1946-503	1946	The reclamation and flood control projects which I am recommending for the  fiscal year 1947 will involve capital outlays of approximately 319 million  dollars as compared with 245 million dollars in the fiscal year 1946. These  expenditures cover programs of the Corps of Engineers, the Bureau of  Reclamation, the Bureau of Indian Affairs, the Department of Agriculture,  and the International Boundary and Water Commission, United States and  Mexico. A number of these projects are multiple-purpose projects, providing  not only for reclamation and irrigation of barren land and flood control,  but also for the production of power needed for industrial development of  the areas.  
1946-504	1946	Expenditures for power transmission and distribution facilities by the  Bonneville Power Administration are expected to increase from 12 million  dollars in the fiscal year 1946 to 15 million dollars in the next fiscal  year. In addition, the Southwestern Power Administration will undertake a  new program involving expenditures of about 16 million dollars in the  fiscal year 1947. The Rural Electrification Administration will require  expenditures during the current fiscal year estimated at 156 million  dollars; in the fiscal year 1947, at 241 million dollars.  
1946-505	1946	The TVA program includes completion of major multiple-purpose  projects--navigation, flood control, and power facilities--and additions to  chemical plants and related facilities. Expenditures for these capital  improvement programs are estimated at 30 million dollars in the fiscal year  1946 and 39 million dollars in the fiscal year 1947.  
1946-506	1946	Expenditures for construction of roads and other developmental works in the  national forests, parks, and other public lands, and for capital outlays  for fish and wildlife development will increase from below 9 million  dollars in the fiscal year 1946 to 24 million dollars in the fiscal year  1947.  
1946-507	1946	6. SOCIAL SECURITY AND HEALTH  
1946-508	1946	Benefit payments out of the Old-Age and Survivors Insurance Trust fund  during 1947 are estimated at 407 million dollars, while withdrawals by the  States from the Unemployment Trust fund for compensation payments are  expected to total 1 billion dollars. These disbursements are financed out  of social security contributions.  
1946-509	1946	The appropriations from general and special accounts for the social  security program, which cover Federal administrative expenses and grants to  States for assistance programs, are estimated at 593 million dollars for  the fiscal year 1947, an increase of 57 million dollars over the current  year. The increase anticipates greater administrative workload and higher  grants to match increasing State payments. The social security program does  not include all the Federal health services under existing legislation. For  the other health services classified under general government and national  defense, appropriations are estimated at 102 million dollars for the fiscal  year 1947.  
1946-510	1946	Some expansion in peacetime medical research and other programs of the  Public Health Service is provided for in the appropriation estimates for  these purposes totaling approximately 87 million dollars for the fiscal  year 1947 which are submitted under provisions of existing law. Part of  this will be provided through the social security appropriations, the  remainder through other appropriations. About 28 million dollars is  recommended for maternity care and health services for children under  existing law, mainly under the emergency provision for the wives and  infants of servicemen. While we should avoid duplication of maternity and  child health services which will be provided through the proposed general  system of prepaid medical care, legislation is needed to supplement such  services. For medical education, I have recommended legislation authorizing  grants-in-aid to public and nonprofit institutions. The existing sources of  support for medical schools require supplementation to sustain the  expansion that is needed.  
1946-511	1946	Hospitals, sanitation works, and additional facilities at medical schools  will be required for an adequate national health program. Legislation is  now pending in the Congress to authorize grants for the construction of  hospitals and health centers and grants and loans for water-pollution  control. I hope the Congress will act favorably on generous authorizing  legislation.  
1946-512	1946	7. RESEARCH AND EDUCATION  
1946-513	1946	The Budget provides for continuation and desirable expansion of the  research activities that are carried on throughout the Federal  establishment and through previously authorized grants to the States.  Additional appropriations will be required for the proposed central Federal  research agency which I recommended last September 6. That agency will  coordinate existing research activities and administer funds for new  research activities wherever they are needed; it will not itself conduct  research. The plan contemplates expenditures through the new research  agency of approximately 40 million dollars for the first year.  
1946-514	1946	These amounts are small in relation to the important contribution they can  make to the national income, the welfare of our people, and the common  defense. Expenditures must be limited for the time being by the capacity of  research agencies to make wise use of funds. The maintenance of our  position as a nation, however, will require more emphasis on research  expenditures in the future than in the past.  
1946-515	1946	Educational expenditures will require a significant share of the national  income in the fiscal year 1947. State, local, and private expenditures for  the current support of elementary, secondary, and higher education are  expected to be substantially above 3 billion dollars in that year. These  nonfederal expenditures will be supplemented by Federal expenditures  estimated at 625 million dollars in the present Budget. Of this amount, the  estimate for veterans' education, as previously mentioned, is 535 million  dollars. Other amounts include 21 million dollars for the support of  vocational education in public schools, 5 million dollars for the  land-grant colleges, 50 million dollars for the present school-lunch and  milk program, 1 million dollars for the Office of Education, and  approximately 13 million dollars for various other items. In view of the  major policy issues which are still under study by the Congress and the  Administration, no specific amount has been determined for the Federal  grants, previously recommended in this Message, which would assist the  States generally in assuring more nearly equal opportunities for a good  education.  
1946-516	1946	Notwithstanding the urgent need for additional school and college  buildings, careful planning will be required for the expenditures to be  made under the proposed legislation to aid the States in providing  educational facilities. A major share of the grants for the first year  would be for surveys and plans.  
1946-517	1946	I have already outlined the broad objectives of our foreign economic  policy. In the present section I shall indicate the Federal outlays which  the execution of these programs may require in the fiscal years 1946 and  1947.  
1946-518	1946	(a) On the termination of lend-lease, the lend-lease countries were  required to pay for goods in the lend-lease pipe line either in cash or by  borrowing from the United States or by supplying goods and services to the  United States. Credits for this purpose have already been extended to  Soviet Union, France, the Netherlands, and Belgium amounting to 675 million  dollars. The settlement credit of 650 million dollars to the United Kingdom  includes an amount preliminarily fixed at 118 million dollars which  represents the excess of purchases by the United Kingdom from the pipe line  over goods and services supplied by the United Kingdom to the United States  since VJ-day and the balance of various claims by one government against  the other.  
1946-519	1946	Credits are also being negotiated with lend-lease countries to finance the  disposition of lend-lease inventories and installations and property  declared to be surplus. For instance, 532 million dollars of the settlement  credit to the United Kingdom is for this purpose. These credits will  involve no new expenditures by this Government, since they merely provide  for deferred repayment by other governments for good: services which have  been financed from war appropriations.  
1946-520	1946	(b) Expenditures from the appropriations to United Nations Relief and  Rehabilitation Administration, which were discarded under war expenditures  above, are estimated to be 1.3 billion dollars in the fiscal year 1946 and  1.2 billion dollars in the fiscal year 1947.  
1946-521	1946	(c) To assist other countries in the restoration of their economies the  Export-Import Bank has already negotiated loans in the fiscal year 1946  amounting in total to about 1,010 million dollars and an additional 195  million dollars will probably be committed shortly. The Bank is also  granting loans to carry out its original purpose of directly expanding the  foreign trade of the United States. In this connection the Bank has  established a fund of 100 million dollars to finance the export of cotton  from the United States. The Export-Import Bank has thus loaned or committed  approximately 1,300 million dollars during the current fiscal year and it  is expected that demands on its resources will increase in the last 6  months of the fiscal year 1946. Requests for loans are constantly being  received by the Bank from countries desiring to secure goods and services  in this country for the reconstruction or development of their economies.  On July 31, 1945, the lending authority of the Expert-Import Bank was  increased to a total of 3,500 million dollars. I anticipate that during the  period covered by this Budget the Bank will reach this limit. The bulk of  the expenditures from the loans already granted will fall in the fiscal  year 1946 while the bulk of the expenditures from loans yet to be  negotiated will fall in the fiscal year 1947. In view of the urgent need  for the Bank's credit, I may find it necessary to request a further  increase in its lending authority at a later date.  
1946-522	1946	(d) The proposed line of credit of 3,750 million dollars to the United  Kingdom will be available up to the end of 1951 and will be used to assist  the United Kingdom in financing the deficit in its balance of payments  during the transition period. The rate at which the United Kingdom will  draw on the credit will depend on the rapidity with which it can reconvert  its economy and adapt its trade to the postwar world. The anticipated rate  of expenditure is likely to be heaviest during the next 2 years.  
1946-523	1946	(e) Since the Bretton Woods Agreements have now been approved by the  required number of countries, both the International Monetary fund and the  International Bank for Reconstruction and Development will commence  operations during 1946. The organization of these institutions will  undoubtedly take some time, and it is unlikely that their operations will  reach any appreciable scale before the beginning of the fiscal year 1947.  
1946-524	1946	Of the 2,750 million dollars required for the fund, 1,800 million dollars  will be provided in cash or notes from the exchange stabilization fund  established under the Gold Reserve Act of 1934. The remaining 950 million  dollars will be paid initially in the form of non-interest-bearing notes  issued by the Secretary of the Treasury. It is not anticipated that the  fund will require in cash any of the 950 million dollars during the fiscal  years 1946 and 1947. Consequently, no cash withdrawals from the Treasury  will be required in connection with the fund in these years.  
1946-525	1946	The subscription to the Bank amounts to 3,175 million dollars. Of this  total, 2 percent must be paid immediately and the Bank is required to call  a further 8 percent of the subscription during its first year of  operations. The balance of the subscription is payable when required by the  Bank either for direct lending or to make good its guarantees. It is likely  that the United States will be required to pay little if any more than the  initial 10 percent before the end of the fiscal year 1947.  
1946-526	1946	I anticipate that net expenditures of the Export-Import Bank and  expenditures arising from the British credit and the Bretton Woods  Agreements will amount to 2,614 million dollars, including the noncash item  of 950 million dollars for the fund, in the fiscal year 1946, and 2,754  million dollars in the fiscal year 1947.  
1946-527	1946	GENERAL GOVERNMENT  
1946-528	1946	The responsibilities of the Government, in both domestic and international  affairs, have increased greatly in the past decade. Consequently, the  Government is larger than it was before the war, and its general operating  costs are higher. We cannot shrink the Government to prewar dimensions  unless we slough off these new responsibilities--and we cannot do that  without paying an excessive price in terms of our national welfare. We can,  however, enhance its operating efficiency through improved organization. I  expect to make such improvements under the authority of the Reorganization  Act of 1945.  
1946-529	1946	The appropriations which I am recommending for general government for the  fiscal year 1947 are 1,604 million dollars under existing legislation. This  is an increase of 458 million dollars over the total of enacted  appropriations for the current fiscal year, but a substantial part of this  increase is due to the fact that the appropriations for the fiscal year  1946 were made prior to the general increase of employees' salaries last  July 1, for which allowance is made in the anticipated supplemental  appropriations for 1946. The recommended total for 1947 for general  government, like the estimates for national defense and other specific  programs, does not allow for the further salary increases for Government  employees which, I hope, will be authorized by pending legislation, but-the  tentative lump-sum estimates under proposed legislation contemplate that  such salary increases will be effective almost at once.  
1946-530	1946	Expenditures for general government in the fiscal year 1947 are expected to  continue the slowly rising trend which began in 1943. This category  includes a great variety of items--not merely the overhead costs of the  Government. It includes all the expenditures of the Cabinet departments,  other than for national defense, aids to agriculture, general public works,  and the social security program. It includes also expenditures of the  legislative branch, the Judiciary, and many of the independent agencies of  the executive branch. Consequently, the estimated increase in 1947 in the  total of general government expenditures reflects a variety of influences.  
1946-531	1946	Now included in general government are certain activities formerly  classified under national defense. Some of these, such as certain functions  of the former foreign Economic Administration and the War Manpower  Commission, are still needed during the period of reconversion; others are  in the process of liquidation. A few wartime activities, for example, the  international information and foreign intelligence services and some of the  wartime programs for controlling disease and crime, have become part of our  regular government establishment. Expenditures for these former wartime  functions explain about 40 percent of the increase in expenditures for  general government.  
1946-532	1946	Other increases are for civil aeronautics promotion, the business and  manufacturing censuses, and other expanded business services of the  Department of Commerce which have been referred to above; the forest and  Soil Conservation Services and other committees of the Department of  certain conservation activities of the Department of the Interior; and the  collection of internal revenue in the Treasury Department.  
1946-533	1946	The necessity for reestablishing postal services curtailed during the war  and advances in the rates of pay for postal employees have increased  substantially the estimated expenditures for postal service for both the  current and the next fiscal year. It is not expected that this increase  will cause expenditures to exceed postal revenues in either year, although  an excess of expenditures may occur in the fiscal year 1947 if salaries are  increased further.  
1946-534	1946	Expenditures for our share of the administrative budgets of the United  Nations and other permanent international bodies will increase sharply in  the fiscal year 1947, yet will remain a small part of our total Budget. The  budget for the United Nations has not yet been determined; an estimate for  our contribution will be submitted later. Our contributions to the food and  Agriculture Organization, the International Labor Office, the Pan American  Union, and other similar international agencies will aggregate about 3  million dollars for the fiscal year 1947. The administrative expenses of  the International Monetary fund and the International Bank will be met from  their general funds.  
1946-535	1946	We have won a great war--we, the nations of plain people who hate war. In  the test of that war we found a strength of unity that brought us  through--a strength that crushed the power of those who sought by force to  deny our faith in the dignity of man.  
1946-536	1946	During this trial the voices of disunity among us were silent or were  subdued to an occasional whine that warned us that they were still among  us. Those voices are beginning to cry aloud again. We must learn constantly  to turn deaf ears to them. They are voices which foster fear and suspicion  and intolerance and hate. They seek to destroy our harmony, our  understanding of each other, our American tradition of "live and let live."  They have become busy again, trying to set race against race, creed against  creed, farmer against city dweller, worker against employer, people against  their own governments. They seek only to do us mischief. They must not  prevail.  
1946-537	1946	It should be impossible for any man to contemplate without a sense of  personal humility the tremendous events of the 12 months since the last  annual Message, the great tasks that confront us, the new and huge problems  of the coming months and years. Yet these very things justify the deepest  confidence in the future of this Nation of free men and women.  
1946-538	1946	The plain people of this country found the courage and the strength, the  self-discipline, and the mutual respect to fight and to win, with the help  of our allies, under God. I doubt if the tasks of the future are more  difficult. But if they are, then I say that our strength and our knowledge  and our understanding will be equal to those tasks.  
1946-539	1946	As printed above, references to tables appearing in the budget document  have been omitted.  
1947-1	1947	Mr. President, Mr. Speaker, Members of the Congress of the United States:  
1947-2	1947	It looks like a good many of you have moved over to the left since I was  here last!  
1947-3	1947	I come before you today to report on the State of the Union and, in the  words of the Constitution, to recommend such measures as I judge necessary  and expedient.  
1947-4	1947	I come also to welcome you as you take up your duties and to discuss with  you the manner in which you and I should fulfill our obligations to the  American people during the next 2 years.  
1947-5	1947	The power to mold the future of this Nation lies in our hands--yours and  mine, and they are joined together by the Constitution.  
1947-6	1947	If in this year, and in the next, we can find the right course to take as  each issue arises, and if, in spite of all difficulties, we have the  courage and the resolution to take that course, then we shall achieve a  state of well-being for our people without precedent in history. And if we  continue to work with the other nations of the world earnestly, patiently,  and wisely, we can--granting a will for peace on the part of our  neighbors-make a lasting peace for the world.  
1947-7	1947	But, if we are to realize these ends, the Congress and the President,  during the next 2 years, must work together. It is not unusual in our  history that the majority of the Congress represents a party in opposition  to the President's party. I am the twentieth President of the United States  who, at some time during his term of office, has found his own party to be  in the minority in one or both Houses of Congress. The first one was George  Washington. Wilson was number eighteen, and Hoover was number nineteen.  
1947-8	1947	I realize that on some matters the Congress and the President may have  honest differences of opinion. Partisan differences, however, did not cause  material disagreements as to the conduct of the war. Nor, in the conduct of  our international relations, during and since the war, have such partisan  differences been material.  
1947-9	1947	On some domestic issues we may, and probably shall, disagree. That in  itself is not to be feared. It is inherent in our form of Government. But  there are ways of disagreeing; men who differ can still work together  sincerely for the common good. We shall be risking the Nation's safety and  destroying our opportunities for progress if we do not settle any  disagreements in this spirit, without thought of partisan advantage.  
1947-10	1947	THE GENERAL DOMESTIC ECONOMY  
1947-11	1947	As the year 1947 begins, the state of our national economy presents great  opportunities for all. We have virtually full employment. Our national  production of goods and services is 50 percent higher than in any year  prior to the war emergency. The national income in 1946 was higher than in  any peacetime year. Our food production is greater than it has ever been.  During the last 5 years our productive facilities have been expanded in  almost every field. The American standard of living is higher now than ever  before, and when the housing shortage can be overcome it will be even  higher.  
1947-12	1947	During the past few months we have removed at a rapid rate the emergency  controls that the Federal Government had to exercise during the war. The  remaining controls will be retained only as long as they are needed to  protect the public. Private enterprise must be given the greatest possible  freedom to continue the expansion of economy.  
1947-13	1947	In my proclamation of December 31, 1946 I announced the termination of  hostilities. This automatically ended certain temporary legislation and  certain executive powers.  
1947-14	1947	Two groups of temporary laws still remain: the first are those which by  Congressional mandate are to last during the "emergency"; the second are  those which are to continue until the "termination of the war,"  
1947-15	1947	I shall submit to the Congress recommendations for the repeal of certain of  the statutes which by their terms continue for the duration of the  "emergency." I shall at the same time recommend that others within this  classification be extended until the state of war has been ended by treaty  or by legislative action. As to those statutes which continue until the  state of war has been terminated, I urge that the Congress promptly  consider each statute individually, and repeal such emergency legislation  where it is advisable.  
1947-16	1947	Now that nearly all wartime controls have been removed, the operation of  our industrial system depends to a greater extent on the decisions of  businessmen, farmers, and workers. These decisions must be wisely made with  genuine concern for public welfare. The welfare of businessmen, farmers,  and workers depends upon the economic well-being of those who buy their  products.  
1947-17	1947	An important present source of danger to our economy is the possibility  that prices might be raised to such an extent that the consuming public  could not purchase the tremendous volume of goods and services which will  be produced during 1947.  
1947-18	1947	We all know that recent price increases have denied to many of our workers  much of the value of recent wage increases. Farmers have found that a large  part of their increased income has been absorbed by increased prices. While  some of our people have received raises in income which exceed price  increases, the great majority have not. Those persons who live on modest  fixed incomes--retired persons living on pensions, for example--and workers  whose incomes are relatively inflexible, such as teachers and other civil  servants--have suffered hardship.  
1947-19	1947	In the effort to bring about a sound and equitable price structure, each  group of our population has its own responsibilities.  
1947-20	1947	It is up to industry not only to hold the line on existing prices, but to  make reductions whenever profits justify such action.  
1947-21	1947	It is up to labor to refrain from pressing for unjustified wage increases  that will force increases in the price level.  
1947-22	1947	And it is up to Government to do everything in its power to encourage  high-volume Production, for that is what makes possible good wages, low  prices, and reasonable profits.  
1947-23	1947	In a few days there will be submitted to the Congress the Economic Report  of the President, and also the Budget Message. Those messages will contain  many recommendations. Today I shall outline five major economic policies  which I believe the Government should pursue during 1947. These policies  are designed to meet our immediate needs and, at the same time, to provide  for the long-range welfare of our free enterprise system:  
1947-24	1947	First, the promotion of greater harmony between labor and management.  
1947-25	1947	Second, restriction of monopoly and unfair business practices; assistance  to small business; and the promotion of the free competitive system of  private enterprise.  
1947-26	1947	Third, continuation of an aggressive program of home construction.  
1947-27	1947	Fourth, the balancing of the budget in the next fiscal year and the  achieving of a substantial surplus to be applied to the reduction of the  public debt.  
1947-28	1947	Fifth, protection of a fair level of return to farmers in post-war  agriculture.  
1947-29	1947	LABOR AND MANAGEMENT  
1947-30	1947	The year just past--like the year after the first World War--was marred by  labor management strife.  
1947-31	1947	Despite this outbreak of economic warfare in 1946, we are today producing  goods and services in record volume. Nevertheless, it is essential to  improve the methods for reaching agreement between labor and management and  to reduce the number of strikes and lockouts.  
1947-32	1947	We must not, however, adopt punitive legislation. We must not in order to  punish a few labor leaders, pass vindictive laws which will restrict the  proper rights of the rank and file of labor. We must not, under the stress  of emotion, endanger our American freedoms by taking ill-considered action  which will lead to results not anticipated or desired.  
1947-33	1947	We must remember, in reviewing the record of disputes in 1946, that  management shares with labor the responsibility for failure to reach  agreements which would have averted strikes. For that reason, we must  realize that industrial peace cannot be achieved merely by laws directed  against labor unions.  
1947-34	1947	During the last decade and a half, we have established a national labor  policy in this country based upon free collective bargaining as the process  for determining wages and working conditions.  
1947-35	1947	That is still the national policy.  
1947-36	1947	And it should continue to be the national policy!  
1947-37	1947	But as yet, not all of us have learned what it means to bargain freely and  fairly. Nor have all of us learned to carry the mutual responsibilities  that accompany the right to bargain. There have been abuses and harmful  practices which limit the effectiveness of our system of collective  bargaining. Furthermore, we have lacked sufficient governmental machinery  to aid labor and management in resolving their differences.  
1947-38	1947	Certain labor-management problems need attention at once and certain  others, by reason of their complexity, need exhaustive investigation and  study.  
1947-39	1947	We should enact legislation to correct certain abuses and to provide  additional governmental assistance in bargaining. But we should also  concern ourselves with the basic causes of labor-management difficulties.  
1947-40	1947	In the light of these considerations, I propose to you and urge your  cooperation in effecting the following four-point program to reduce  industrial strife:  
1947-41	1947	Point number one is the early enactment of legislation to prevent certain  unjustifiable practices.  
1947-42	1947	First, under this point, are jurisdictional strikes. In such strikes the  public and the employer are innocent bystanders who are injured by a  collision between rival unions. This type of dispute hurts production,  industry, and the public--and labor itself. I consider jurisdictional  strikes indefensible.  
1947-43	1947	The National Labor Relations Act provides procedures for determining which  union represents employees of a particular employer. In some jurisdictional  disputes, however, minority unions strike to compel employers to deal with  them despite a legal duty to bargain with the majority union. Strikes to  compel an employer to violate the law are inexcusable. Legislation to  prevent such strikes is clearly desirable.  
1947-44	1947	Another form of inter-union disagreement is the jurisdictional strike  involving the question of which labor union is entitled to perform a  particular task. When rival unions are unable to settle such disputes  themselves, provision must be made for peaceful and binding determination  of the issues.  
1947-45	1947	A second unjustifiable practice is the secondary boycott, when used to  further jurisdictional disputes or to compel employers to violate the  National Labor Relations Act.  
1947-46	1947	Not all secondary boycotts are unjustified. We must judge them on the basis  of their objectives. For example, boycotts intended to protect wage rates  and working conditions should be distinguished from those in furtherance of  jurisdictional disputes. The structure of industry sometimes requires  unions, as a matter of self-preservation, to extend the conflict beyond a  particular employer. There should be no blanket prohibition against  boycotts. The appropriate goal is legislation which prohibits secondary  boycotts in pursuance of unjustifiable objectives, but does not impair the  union's right to preserve its own existence and the gains made in genuine  collective bargaining.  
1947-47	1947	A third practice that should be corrected is the use of economic force, by  either labor or management, to decide issues arising out of the  interpretation of existing contracts.  
1947-48	1947	Collective bargaining agreements, like other contracts, should be  faithfully adhered to by both parties. In the most enlightened  union-management relationships, disputes over the interpretation of  contract terms are settled peaceably by negotiation or arbitration.  Legislation should be enacted to provide machinery whereby unsettled  disputes concerning the interpretation of an existing agreement may be  referred by either party to final and binding arbitration.  
1947-49	1947	Point number two is the extension of facilities within the Department of  Labor for assisting collective bargaining.  
1947-50	1947	One of our difficulties in avoiding labor strife arises from a lack of  order in the collective bargaining process. The parties often do not have a  dear understanding of their responsibility for settling disputes through  their own negotiations. We constantly see instances where labor or  management resorts to economic force without exhausting the possibilities  for agreement through the bargaining process. Neither the parties nor the  Government have a definite yardstick for determining when and how  Government assistance should be invoked. There is need for integrated  governmental machinery to provide the successive steps of mediation,  voluntary arbitration, and--ultimately in appropriate cases--ascertainment  of the facts of the dispute and the reporting of the facts to the public.  Such machinery would facilitate and expedite the settlement of disputes.  
1947-51	1947	Point number three is the broadening of our program of social legislation  to alleviate the causes of workers' insecurity.  
1947-52	1947	On June 11, 1946, in my message vetoing the Case Bill, I made a  comprehensive statement of my views concerning labor-management relations.  I said then, and I repeat now, that the solution of labor-management  difficulties is to be found not only in legislation dealing directly with  labor relations, but also in a program designed to remove the causes of  insecurity felt by many workers in our industrial society. In this  connection, for example, the Congress should consider the extension and  broadening of our social security system, better housing, a comprehensive  national health program, and provision for a fair minimum wage.  
1947-53	1947	Point number four is the appointment of a Temporary Joint Commission to  inquire into the entire field of labor-management relations.  
1947-54	1947	I recommend that the Congress provide for the appointment of a Temporary  Joint Commission to undertake this broad study.  
1947-55	1947	The President, the Congress, and management and labor have a continuing  responsibility to cooperate in seeking and finding the solution of these  problems. I therefore recommend that the Commission be composed as follows:  twelve to be chosen by the Congress from members of both parties in the  House and the Senate, and eight representing the public, management and  labor, to be appointed by the President.  
1947-56	1947	The Commission should be charged with investigating and making  recommendations upon certain major subjects, among others:  
1947-57	1947	First, the special and unique problem of nationwide strikes in vital  industries affecting the public interest. In particular, the Commission  should examine into the question of how to settle or prevent such strikes  without endangering our general democratic freedoms.  
1947-58	1947	Upon a proper solution of this problem may depend the whole industrial  future of the United States. The paralyzing effects of a nationwide strike  in such industries as transportation, coal, oil, steel, or communications  can result in national disaster. We have been able to avoid such disaster,  in recent years, only by the use of extraordinary war powers. All those  powers will soon be gone. In their place there must be created an adequate  system and effective machinery in these vital fields. This problem will  require careful study and a bold approach, but an approach consistent with  the preservation of the rights of our people. The need is pressing. The  Commission should give this its earliest attention.  
1947-59	1947	Second, the best methods and procedures for carrying out the collective  bargaining process. This should include the responsibilities of labor and  management to negotiate freely and fairly with each other, and to refrain  from strikes or lockouts until all possibilities of negotiation have been  exhausted.  
1947-60	1947	Third, the underlying causes of labor management disputes.  
1947-61	1947	Some of the subjects presented here for investigation involve long-range  study. Others can be considered immediately by the Commission and its  recommendations can be submitted to the Congress in the near future.  
1947-62	1947	I recommend that this Commission make its first report, including specific  legislative recommendations, not later than March 15, 1947.  
1947-63	1947	RESTRICTION Of MONOPOLY AND PROMOTION OF PRIVATE ENTERPRISE  
1947-64	1947	The second major policy I desire to lay before you has to do with the  growing concentration of economic power and the threat to free competitive  private enterprise. In 1941 the Temporary National Economic Committee  completed a comprehensive investigation into the workings of the national  economy. The Committee's study showed that, despite a half century of  anti-trust law enforcement, one of the gravest threats to our welfare lay  in the increasing concentration of power in the hands of a small number of  giant organizations.  
1947-65	1947	During the war, this long-standing tendency toward economic concentration  was accelerated. As a consequence, we now find that to a greater extent  than ever before, whole industries are dominated by one or a few large  organizations which can restrict production in the interest of higher  profits and thus reduce employment and purchasing power.  
1947-66	1947	In an effort to assure full opportunity and free competition to business we  will vigorously enforce the anti-trust laws. There is much the Congress can  do to cooperate and assist in this program.  
1947-67	1947	To strengthen and enforce the laws that regulate business practices is not  enough. Enforcement must be supplemented by positive measures of aid to new  enterprises. Government assistance, research programs, and credit powers  should be designed and used to promote the growth of new firms and new  industries. Assistance to small business is particularly important at this  time when thousands of veterans who are potential business and industrial  leaders are beginning their careers.  
1947-68	1947	We should also give special attention to the decentralization of industry  and the development of areas that are now under-industrialized.  
1947-69	1947	HOUSING  
1947-70	1947	The third major policy is also of great importance to the national economy:  an aggressive program to encourage housing construction. The first federal  program to relieve the veterans' housing shortage was announced in February  1946. In 1946 one million family housing units have been put under  construction and more than 665,000 units have already been completed. The  rate of expansion in construction has broken all records.  
1947-71	1947	In the coming year the number of dwelling units built will approach, if not  surpass, the top construction year of 1926. The primary responsibility to  deliver housing at reasonable prices that veterans can afford rests with  private industry and with labor. The Government will continue to expedite  the flow of key building materials, to limit nonresidential construction,  and to give financial support where it will do the most good. Measures to  stimulate rental housing and new types of housing construction will receive  special emphasis.  
1947-72	1947	To reach our long-range goal of adequate housing for all our people,  comprehensive housing legislation is urgently required, similar to the  non-partisan bill passed by the Senate last year. At a minimum, such  legislation should open the way for rebuilding the blighted areas of our  cities and should establish positive incentives for the investment of  billions of dollars of private capital in large-scale rental housing  projects. It should provide for improvement of housing in rural areas and  for the construction, over a 4-year period, of half a million units of  public low-rental housing. It should authorize a single peacetime federal  housing agency to assure efficient use of our resources on the vast housing  front.  
1947-73	1947	FISCAL AFFAIRS  
1947-74	1947	The fourth major policy has to do with the balancing of the budget. In a  prosperous period such as the present one, the budget of the Federal  Government should be balanced. Prudent management of public finance  requires that we begin the process of reducing the public debt. The budget  which I shall submit to you this week has a small margin of surplus. In the  Budget Message I am making recommendations which, if accepted, will result  in a substantially larger surplus which should be applied to debt  retirement. One of these recommendations is that the Congress take early  action to continue throughout the next fiscal year the war excise tax rates  which, under the present law, will expire on June 30, 1947.  
1947-75	1947	Expenditures relating to the war are still high. Considerable sums are  required to alleviate world famine and suffering. Aid to veterans will  continue at peak level. The world situation is such that large military  expenditures are required. Interest on the public debt and certain other  costs are irreducible. For these reasons I have had to practice stringent  economy in preparing the budget; and I hope that the Congress will  cooperate in this program of economy.  
1947-76	1947	AGRICULTURE  
1947-77	1947	The fifth major policy has to do with the welfare of our farm population.  
1947-78	1947	Production of food reached record heights in 1946. Much of our tremendous  grain crop can readily be sold abroad and thus will become no threat to our  domestic markets. But in the next few years American agriculture can face  the same dangers it did after World War I. In the early twenties the Nation  failed to maintain outlets for the new productive capacity of our  agricultural plant. It failed to provide means to protect the farmer while  he adjusted his acreage to peacetime demands.  
1947-79	1947	The result we all remember too well. Farm production stayed up while demand  and prices fell, in contrast with industry where prices stayed up and  output declined, farm surpluses piled up, and disaster followed.  
1947-80	1947	We must make sure of meeting the problems which we failed to meet after the  first World War. Present laws give considerable stability to farm prices  for 1947 and 1948, and these 2 years must be utilized to maintain and  develop markets for our great productive power.  
1947-81	1947	The purpose of these laws was to permit an orderly transition from war to  peace. The Government plan of support prices was not designed to absorb, at  great cost, the unlimited surpluses of a highly productive agriculture.  
1947-82	1947	We must not wait until the guarantees expire to set the stage for permanent  farm welfare.  
1947-83	1947	The farmer is entitled to a fair income.  
1947-84	1947	Ways can be found to utilize his new skills and better practices, to expand  his markets at home and abroad, and to carry out the objectives of a  balanced pattern of peacetime production without either undue sacrifice by  farm people or undue expense to the Government.  
1947-85	1947	HEALTH AND GENERAL WELFARE  
1947-86	1947	Of all our national resources, none is of more basic value than the health  of our people. Over a year ago I presented to the Congress my views on a  national health program. The Congress acted on several of the  recommendations in this program-mental health, the health of mothers and  children, and hospital construction. I urge this Congress to complete the  work begun last year and to enact the most important recommendation of the  program--to provide adequate medical care to all who need it, not as  charity but on the basis of payments made by the beneficiaries of the  program.  
1947-87	1947	One administrative change would help greatly to further our national  program in the fields of health, education, and welfare. I again recommend  the establishment of a well-integrated Department of Welfare.  
1947-88	1947	VETERANS  
1947-89	1947	Fourteen million World War II servicemen have returned to civil life. The  great majority have found their places as citizens of their communities and  their Nation. It is a tribute to the fiber of our servicemen and to the  flexibility of our economy that these adjustments have been made so rapidly  and so successfully.  
1947-90	1947	More than two million of these veterans are attending schools or acquiring  job skills through the financial assistance of the Federal Government.  Thousands of sick and wounded veterans are daily receiving the best of  medical and hospital care. Half a million have obtained loans, with  Government guarantees, to purchase homes or farms or to embark upon new  businesses. Compensation is being paid in almost two million cases for  disabilities or death. More than three million are continuing to maintain  their low-cost National Service Life Insurance policies. Almost seven  million veterans have been aided by unemployment and self-employment  allowances.  
1947-91	1947	Exclusive of mustering-out payments and terminal leave pay, the program for  veterans of all wars is costing over seven billion dollars a  year--one-fifth of our total federal budget. This is the most far-reaching  and complete veterans program ever conceived by any nation.  
1947-92	1947	Except for minor adjustments, I believe that our program of benefits for  veterans is now complete. In the long run, the success of the program will  not be measured by the number of veterans receiving financial aid or by the  number of dollars we spend. History will judge us not by the money we  spend, but by the further contribution we enable our veterans to make to  their country. In considering any additional legislation, that must be our  criterion.  
1947-93	1947	CIVIL RIGHTS  
1947-94	1947	We have recently witnessed in this country numerous attacks upon the  constitutional rights of individual citizens as a result of racial and  religious bigotry. Substantial segments of our people have been prevented  from exercising fully their right to participate in the election of public  officials, both locally and nationally. Freedom to engage in lawful  callings has been denied.  
1947-95	1947	The will to fight these crimes should be in the hearts of every one of us.  
1947-96	1947	For the Federal Government that fight is now being carried on by the  Department of Justice to the full extent of the powers that have been  conferred upon it. While the Constitution withholds from the Federal  Government the major task of preserving peace in the several States, I am  not convinced that the present legislation reached the limit of federal  power to protect the civil rights of its citizens.  
1947-97	1947	I have, therefore, by Executive Order,[1] established the President's  Committee on Civil Rights to study and report on the whole problem of  federally-secured civil rights, with a view to making recommendations to  the Congress.  
1947-98	1947	[Footnote 1: Executive Order 9808 (3 CFR, 1943-1948 Comp., p. 590.)]  
1947-99	1947	NATURAL RESOURCES  
1947-100	1947	In our responsibility to promote the general welfare of the people, we have  always to consider the natural resources of our country. They are the  foundation of our life. In the development of the great river systems of  America there is the major opportunity of our generation to contribute to  the increase of the national wealth. This program is already well along; it  should be pushed with full vigor.  
1947-101	1947	I must advise the Congress that we are rapidly becoming a "have not" Nation  as to many of our minerals. The economic progress and the security of our  country depend upon an expanding return of mineral discovery and upon  improved methods of recovery. The Federal Government must do its part to  meet this need.  
1947-102	1947	FOREIGN AFFAIRS  
1947-103	1947	Progress in reaching our domestic goals is closely related to our conduct  of foreign affairs. All that I have said about maintaining a sound and  prosperous economy and improving the welfare of our people has greater  meaning because of the world leadership of the United States. What we do,  or fail to do, at home affects not only ourselves but millions throughout  the world. If we are to fulfill our responsibilities to ourselves and to  other peoples, we must make sure that the United States is sound  economically, socially, and politically. Only then will we be able to help  bring about the elements of peace in other countries--political stability,  economic advancement, and social progress.  
1947-104	1947	Peace treaties for Italy, Bulgaria, Rumania, and Hungary have finally been  prepared. Following the signing of these treaties next month in Paris, they  will be submitted to the Senate for ratification. This Government does not  regard the treaties as completely satisfactory. Whatever their defects,  however, I am convinced that they are as good as we can hope to obtain by  agreement among the principal wartime Allies. Further dispute and delay  would gravely jeopardize political stability in the countries concerned for  many years.  
1947-105	1947	During the long months of debate on these treaties, we have made it clear  to all nations that the United States will not consent to settlements at  the expense of principles we regard as vital to a just and enduring peace.  We have made it equally dear that we will not retreat to isolationism. Our  policies will be the same during the forthcoming negotiations in Moscow on  the German and Austrian treaties, and during the future conferences on the  Japanese treaty.  
1947-106	1947	The delay in arriving at the first peace settlements is due partly to the  difficulty of reaching agreement with the Soviet Union on the terms of  settlement. Whatever differences there may have been between us and the  Soviet Union, however, should not be allowed to obscure the fact that the  basic interests of both nations lie in the early making of a peace under  which the peoples of all countries may return, as free men and women, to  the essential tasks of production and reconstruction. The major concern of  each of us should be the promotion of collective security, not the  advancement of individual security.  
1947-107	1947	Our policy toward the Soviet Union is guided by the same principles which  determine our policies toward all nations. We seek only to uphold the  principles of international justice which have been embodied in the Charter  of the United Nations.  
1947-108	1947	We must now get on with the peace settlements. The occupying powers should  recognize the independence of Austria and withdraw their troops. The  Germans and the Japanese cannot be left in doubt and fear as to their  future; they must know their national boundaries, their resources, and what  reparations they must pay. Without trying to manage their internal affairs,  we can insure that these countries do not re-arm.  
1947-109	1947	INTERNATIONAL RELIEF AND DISPLACED PERSONS  
1947-110	1947	The United States can be proud of its part in caring for the peoples  reduced to want by the ravages of war, and in aiding nations to restore  their national economies. We have shipped more supplies to the hungry  peoples of the world since the end of the war than all other countries  combined!  
1947-111	1947	However, insofar as admitting displaced persons is concerned, I do not feel  that the United States has done its part. Only about 5,000 of them have  entered this country since May, 1946. The fact is that the executive  agencies are now doing all that is reasonably possible under the limitation  of the existing law and established quotas. Congressional assistance in the  form of new legislation is needed. I urge the Congress to turn its  attention to this world problem, in an effort to find ways whereby we can  fulfill our responsibilities to these thousands of homeless and suffering  refugees of all faiths.  
1947-112	1947	INTERNATIONAL TRADE  
1947-113	1947	World economic cooperation is essential to world political cooperation. We  have made a good start on economic cooperation through the International  Bank, the International Monetary fund, and the Export-Import Bank. We must  now take other steps for the reconstruction of world trade and we should  continue to strive for an international trade system as free from  obstructions as possible.  
1947-114	1947	ATOMIC ENERGY  
1947-115	1947	The United States has taken the lead in the endeavor to put atomic energy  under effective international control. We seek no monopoly for ourselves or  for any group of nations. We ask only that there be safeguards sufficient  to insure that no nation will be able to use this power for military  purposes. So long as all governments are not agreed on means of  international control of atomic energy, the shadow of fear will obscure the  bright prospects for the peaceful use of this enormous power.  
1947-116	1947	In accordance with the Atomic Energy Act of 1946, the Commission  established under that law is assuming full jurisdiction over domestic  atomic energy enterprise. The program of the Commission will, of course, be  worked out in close collaboration with the military services in conformity  with the wish of the Congress, but it is my fervent hope that the military  significance of atomic energy will steadily decline. We look to the  Commission to foster the development of atomic energy for industrial use  and scientific and medical research. In the vigorous and effective  development of peaceful uses of atomic energy rests our hope that this new  force may ultimately be turned into a blessing for all nations.  
1947-117	1947	MILITARY POLICY  
1947-118	1947	In 1946 the Army and Navy completed the demobilization of their wartime  forces. They are now maintaining the forces which we need for national  defense and to fulfill our international obligations.  
1947-119	1947	We live in a world in which strength on the part of peace-loving nations is  still the greatest deterrent to aggression. World stability can be  destroyed when nations with great responsibilities neglect to maintain the  means of discharging those responsibilities.  
1947-120	1947	This is an age when unforeseen attack could come with unprecedented speed.  We must be strong enough to defeat, and thus forestall, any such attack. In  our steady Progress toward a more rational world order, the need for large  armed forces is progressively declining; but the stabilizing force of  American military strength must not be weakened until our hopes are fully  realized. When a system of collective security under the United Nations has  been established, we shall be willing to lead in collective disarmament,  but, until such a system becomes a reality, we must not again allow  ourselves to become weak and invite attack.  
1947-121	1947	For those reasons, we need well-equipped, well-trained armed forces and we  must be able to mobilize rapidly our resources in men and material for our  own defense, should the need arise.  
1947-122	1947	The Army will be reduced to 1,070,000 officers and men by July 1, 1947.  Half of the Army will be used for occupation duties abroad and most of the  remainder will be employed at home in the support of these overseas  forces.  
1947-123	1947	The Navy is supporting the occupation troops in Europe and in the Far East.  Its fundamental mission--to support our national interests wherever  required--is unchanged. The Navy, including the Marine Corps, will average  571,000 officers and men during the fiscal year 1948.  
1947-124	1947	We are encountering serious difficulties in maintaining our forces at even  these reduced levels. Occupation troops are barely sufficient to carry out  the duties which our foreign policy requires. Our forces at home are at a  point where further reduction is impracticable. We should like an Army and  a Navy composed entirely of long-term volunteers, but in spite of liberal  inducements the basic needs of the Army are not now being met by voluntary  enlistments.  
1947-125	1947	The War Department has advised me that it is unable to make an accurate  forecast at the present time as to whether it will be possible to maintain  the strength of the Army by relying exclusively on volunteers. The  situation will be much clearer in a few weeks, when the results of the  campaign for volunteers are known. The War Department will make its  recommendations as to the need for the extension of Selective Service in  sufficient time to enable the Congress to take action prior to the  expiration of the present law on March 31st. The responsibility for  maintaining our armed forces at the strength necessary for our national  safety rests with the Congress.  
1947-126	1947	The development of a trained citizen reserve is also vital to our national  security. This can best be accomplished through universal training. I have  appointed an Advisory Commission on Universal Training to study the various  plans for a training program, and I expect that the recommendations of the  Commission will be of benefit to the Congress and to me in reaching  decisions on this problem.  
1947-127	1947	The cost of the military establishment is substantial. There is one certain  way by which we can cut costs and at the same time enhance our national  security. That is by the establishment of a single Department of National  Defense. I shall communicate with the Congress in the near future with  reference to the establishment of a single Department of National Defense.  
1947-128	1947	National security does not consist only of an army, a navy, and an air  force. It rests on a much broader basis. It depends on a sound economy of  prices and wages, on prosperous agriculture, on satisfied and productive  workers, on a competitive private enterprise free from monopolistic  repression, on continued industrial harmony and production, on civil  liberties and human freedoms-on all the forces which create in our men and  women a strong moral fiber and spiritual stamina.  
1947-129	1947	But we have a higher duty and a greater responsibility than the attainment  of our own national security. Our goal is collective security for all  mankind.  
1947-130	1947	If we can work in a spirit of understanding and mutual respect, we can  fulfill this solemn obligation which rests upon us.  
1947-131	1947	The spirit of the American people can set the course of world history. If  we maintain and strengthen our cherished ideals, and if we share our great  bounty with war-stricken people over the world, then the faith of our  citizens in freedom and democracy will be spread over the whole earth and  free men everywhere will share our devotion to those ideals.  
1947-132	1947	Let us have the will and the patience to this job together.  
1947-133	1947	May the Lord strengthen us in our faith.  
1947-134	1947	May He give us wisdom to lead the peoples of the world in His ways of  peace.  
1948-1	1948	Mr. President, Mr. Speaker, and Members of the 80th Congress:  
1948-2	1948	We are here today to consider the state of the Union.  
1948-3	1948	On this occasion, above all others, the Congress and the President should  concentrate their attention, not upon party but upon the country; not upon  things which divide us but upon those which bind us together--the enduring  principles of our American system, and our common aspirations for the  future welfare and security of the people of the United States.  
1948-4	1948	The United States has become great because [p.2] we, as a people, have been  able to work together for great objectives even while differing about  details.  
1948-5	1948	The elements of our strength are many. They include our democratic  government, our economic system, our great natural resources. But these are  only partial explanations.  
1948-6	1948	The basic source of our strength is spiritual. For we are a people with a  faith. We believe in the dignity of man. We believe that he was created in  the image of the Father of us all.  
1948-7	1948	We do not believe that men exist merely to strengthen the state or to be  cogs in the economic machine. We do believe that governments are created to  serve the people and that economic systems exist to minister to their  wants. We have a profound devotion to the welfare and rights of the  individual as a human being.  
1948-8	1948	The faith of our people has particular meaning at this time in history  because of the unsettled and changing state of the world.  
1948-9	1948	The victims of war in many lands are striving to rebuild their lives, and  are seeking assurance that the tragedy of war will not occur again.  Throughout the world new ideas are challenging the old. Men of all nations  are reexamining the beliefs by which they live. Great scientific and  industrial changes have released new forces which will affect the future  course of civilization.  
1948-10	1948	The state of our Union reflects the changing nature of the modern world. On  all sides there is heartening evidence of great energy--of capacity for  economic development-and even more important, capacity for spiritual  growth. But accompanying this great activity there are equally great  questions, great anxieties, and great aspirations. They represent the  concern of an enlightened people that conditions should be so arranged as  to make life more worthwhile.  
1948-11	1948	We must devote ourselves to finding answers to these anxieties and  aspirations. We seek answers which will embody the moral and spiritual  elements of tolerance, unselfishness, and brotherhood upon which true  freedom and opportunity must rest.  
1948-12	1948	As we examine the state of our Union today, we can benefit from viewing it  on a basis of the accomplishments of the last decade and of our goals for  the next. How far have we come during the last 10 years and how far can we  go in the next 10?  
1948-13	1948	It was 10 years ago that the determination of dictators to wage war upon  mankind became apparent. The years that followed brought untold death and  destruction.  
1948-14	1948	We shared in the human suffering of the war, but we were fortunate enough  to escape most of war's destruction. We were able through these 10 years to  expand the productive strength of our farms and factories.  
1948-15	1948	More important, however, is the fact that these years brought us new  courage, new confidence in the ideals of our free democracy. Our deep  belief in freedom and justice was reinforced in the crucible of war.  
1948-16	1948	On the foundations of our greatly strengthened economy and our renewed  confidence in democratic values, we can continue to move forward.  
1948-17	1948	There are some who look with fear and distrust upon planning for the  future. Yet our great national achievements have been attained by those  with vision. Our Union was formed, our frontiers were pushed back, and our  great industries were built by men who looked ahead.  
1948-18	1948	I propose that we look ahead today toward those goals for the future which  have the greatest bearing upon the foundations of our democracy and the  happiness of our people.  
1948-19	1948	I do so, confident in the thought that with clear objectives and with firm  determination, we can, in the next 10 years, build upon the [p.3]  accomplishments of the past decade to achieve a glorious future. Year by  year, beginning now, we must make a substantial part of this progress.  
1948-20	1948	Our first goal is to secure fully the essential human rights of our  citizens.  
1948-21	1948	The United States has always had a deep concern for human rights. Religious  freedom, free speech, and freedom of thought are cherished realities in our  land. Any denial of human rights is a denial of the basic beliefs of  democracy and of our regard for the worth of each individual.  
1948-22	1948	Today, however, some of our citizens are still denied equal opportunity for  education, for jobs and economic advancement, and for the expression of  their views at the polls. Most serious of all, some are denied equal  protection under laws. Whether discrimination is based on race, or creed,  or color, or land of origin, it is utterly contrary to American ideals of  democracy.  
1948-23	1948	The recent report of the President's Committee on Civil Rights points the  way to corrective action by the Federal Government and by State and local  governments. Because of the need for effective Federal action, I shall send  a special message to the Congress on this important subject.  
1948-24	1948	We should also consider our obligation to assure the fullest possible  measure of civil rights to the people of our territories and possessions. I  believe that the time has come for Alaska and Hawaii to be admitted to the  Union as States.  
1948-25	1948	Our second goal is to protect and develop our human resources.  
1948-26	1948	The safeguarding of the rights of our citizens must be accompanied by an  equal regard for their opportunities for development and their protection  from economic insecurity. In this Nation the ideals of freedom and equality  can be given specific meaning in terms of health, education, social  security, and housing.  
1948-27	1948	Over the past 12 years we have erected a sound framework of social security  legislation. Many millions of our citizens are now protected against the  loss of income which can come with unemployment, old age, or the death of  wage earners. Yet our system has gaps and inconsistencies; it is only half  finished.  
1948-28	1948	We should now extend unemployment compensation, old age benefits, and  survivors' benefits to millions who are not now protected. We should also  raise the level of benefits.  
1948-29	1948	The greatest gap in our social security structure is the lack of adequate  provision for the Nation's health. We are rightly proud of the high  standards of medical care we know how to provide in the United States. The  fact is, however, that most of our people cannot afford to pay for the care  they need.  
1948-30	1948	I have often and strongly urged that this condition demands a national  health program. The heart of the program must be a national system of  payment for medical care based on well-tried insurance principles. This  great Nation cannot afford to allow its citizens to suffer needlessly from  the lack of proper medical care.  
1948-31	1948	Our ultimate aim must be a comprehensive insurance system to protect all  our people equally against insecurity and ill health.  
1948-32	1948	Another fundamental aim of our democracy is to provide an adequate  education for every person.  
1948-33	1948	Our educational systems face a financial crisis. It is deplorable that in a  Nation as rich as ours there are millions of children who do not have  adequate schoolhouses or enough teachers for a good elementary or secondary  education. If there are educational inadequacies in any State, the whole  Nation suffers. The Federal Government has a responsibility for providing  financial aid to meet this crisis.  
1948-34	1948	In addition, we must make possible greater equality of opportunity to all  our citizens for education. Only by so doing can we insure that our  citizens will be capable of understanding and sharing the responsibilities  of democracy.  
1948-35	1948	The Government's programs for health, education, and security are of such  great importance to our democracy that we should now establish an executive  department for their administration.  
1948-36	1948	Health and education have their beginning in the home. No matter what our  hospitals or schools are like, the youth of our Nation are handicapped when  millions of them live in city slums and country shacks. Within the next  decade, we must see that every American family has a decent home. As an  immediate step we need the long-range housing program which I have  recommended on many occasions to this Congress. This should include  financial aids designed to yield more housing at lower prices. It should  provide public housing for low-income families, and vigorous development of  new techniques to lower the cost of building.  
1948-37	1948	Until we can overcome the present drastic housing shortage, we must extend  and strengthen rent control.  
1948-38	1948	We have had, and shall continue to have, a special interest in the welfare  of our veterans. Over 14 million men and women who served in the armed  forces in World War II have now returned to civilian life. Over 2 million  veterans are being helped through school. Millions have been aided while  finding jobs, and have been helped in buying homes, in obtaining medical  care, and in adjusting themselves to physical handicaps.  
1948-39	1948	All but a very few veterans have successfully made the transition from  military life to their home communities. The success of our veterans'  program is proved by this fact. This Nation is proud of the eagerness shown  by our veterans to become self-reliant and self-supporting citizens.  
1948-40	1948	Our third goal is to conserve and use our natural resources so that they  can contribute most effectively to the welfare of our people.  
1948-41	1948	The resources given by nature to this country are rich and extensive. The  material foundations of our growth and economic development are the bounty  of our fields, the wealth of our mines and forests, and the energy of our  waters. As a Nation, we are coming to appreciate more each day the dose  relationship between the conservation of these resources and the  preservation of our national strength.  
1948-42	1948	We are doing far less than we know how to do to make use of our resources  without destroying them. Both the public and private use of these resources  must have the primary objective of maintaining and increasing these basic  supports for an expanding future.  
1948-43	1948	We must continue to take specific steps toward this goal. We must  vigorously defend our natural wealth against those who would misuse it for  selfish gain.  
1948-44	1948	We need accurate and comprehensive knowledge of our mineral resources and  must intensify our efforts to develop new supplies and to acquire  stockpiles of scarce materials.  
1948-45	1948	We need to protect and restore our land-public and private--through  combating erosion and rebuilding the fertility of the soil.  
1948-46	1948	We must expand our reclamation program to bring millions of acres of arid  land into production, and to improve water supplies for additional millions  of acres. This will provide new opportunities for veterans and others,  particularly in the West, and aid in providing a rising living standard for  a growing population.  
1948-47	1948	We must protect and restore our forests by sustained-yield forestry and by  planting [p.5] new trees in areas now slashed and barren.  
1948-48	1948	We must continue to erect multiple-purpose dams on our great rivers--not  only to reclaim land, but also to prevent floods, to extend our inland  waterways and to provide hydroelectric power. This public power must not be  monopolized for private gain. Only through well-established policies of  transmitting power directly to its market and thus encouraging widespread  use at low rates can the Federal Government assure the people of their full  share of its benefits. Additional power--public and private--is needed to  raise the ceilings now imposed by power shortages on industrial and  agricultural development.  
1948-49	1948	We should achieve the wise use of resources through the integrated  development of our great river basins. We can learn much from our Tennessee  Valley experience. We should no longer delay in applying the lessons of  that vast undertaking to our other great river basins.  
1948-50	1948	Our fourth goal is to lift the standard of living for all our people by  strengthening our economic system and sharing more broadly among our people  the goods we produce.  
1948-51	1948	The amazing economic progress of the past 10 years points the way for the  next 10.  
1948-52	1948	Today 14 million more people have jobs than in 1938.  
1948-53	1948	Our yearly output of goods and services has increased by two-thirds.  
1948-54	1948	The average income of our people, measured in dollars of equal purchasing  power, has increased--after taxes--by more than 50 percent.  
1948-55	1948	In no other 10 years have farmers, businessmen, and wage earners made such  great gains.  
1948-56	1948	We may not be able to expand as rapidly in the next decade as in the last,  because we are now starting from full employment and very high production.  But we can increase our annual output by at least one-third above the  present level. We can lift our standard of living to nearly double what it  was 10 years ago.  
1948-57	1948	If we distribute these gains properly, we can go far toward stamping out  poverty in our generation.  
1948-58	1948	To do this, agriculture, business, and labor must move forward together.  
1948-59	1948	Permanent farm prosperity and agricultural abundance will be achieved only  as our whole economy grows and prospers. The farmer can sell more food at  good prices when the incomes of wage earners are high and when there is  full employment. Adequate diets for every American family, and the needs of  our industries at full production, will absorb a farm output well above our  present levels.  
1948-60	1948	Although the average farmer is now better off than ever before, farm  families as a whole have only begun to catch up with the standards of  living enjoyed in the cities. In 1946, the average income of farm people  was $779, contrasted with an average income of $1,288 for nonfarm people.  Within the next decade, we should eliminate elements of inequality in these  living standards.  
1948-61	1948	To this end our farm program should enable the farmer to market his varied  crops at fair price levels and to improve his standard of living.  
1948-62	1948	We need to continue price supports for major farm commodities on a basis  which will afford reasonable protection against fluctuations in the levels  of production and demand. The present price support program must be  reexamined and modernized.  
1948-63	1948	Crop insurance should be strengthened and its benefits extended in order to  protect the farmer against the special hazards to which he is subject.  
1948-64	1948	We also need to improve the means for getting farm products into markets  and into the hands of consumers. Cooperatives which [p.6] directly or  indirectly serve this purpose must be encouraged--not discouraged. The  school lunch program should be continued and adequately financed.  
1948-65	1948	We need to go forward with the rural electrification program to bring the  benefits of electricity to all our farm population.  
1948-66	1948	We can, and must, aid and encourage farmers to conserve their soil  resources and restore the fertility of the land that has suffered from  neglect or unwise use.  
1948-67	1948	All these are practical measures upon which we should act immediately to  enable agriculture to make its full contribution to our prosperity.  
1948-68	1948	We must also strengthen our economic system within the next decade by  enlarging our industrial capacity within the framework of our free  enterprise system.  
1948-69	1948	We are today far short of the industrial capacity we need for a growing  future. At least $50 billion should be invested by industry to improve and  expand our productive facilities over the next few years. But this is only  the beginning. The industrial application of atomic energy and other  scientific advances will constantly open up further opportunities for  expansion. Farm prosperity and high employment will call for an immensely  increased output of goods and services.  
1948-70	1948	Growth and vitality in our economy depend on vigorous private enterprise.  Free competition is the key to industrial development, full production and  employment, fair prices, and an ever improving standard of living.  Competition is seriously limited today in many industries by the  concentration of economic power and other elements of monopoly. The  appropriation of sufficient funds to permit proper enforcement of the  present antitrust laws is essential. Beyond that we should go on to  strengthen our legislation to protect competition.  
1948-71	1948	Another basic element of a strong economic system is the well-being of the  wage earners.  
1948-72	1948	We have learned that the well-being of workers depends on high production  and consequent high employment. We have learned equally well that the  welfare of industry and agriculture depends on high incomes for our  workers.  
1948-73	1948	The Government has wisely chosen to set a floor under wages. But our  40-cent minimum wage is inadequate and obsolete. I recommend the lifting of  the minimum wage to 75 cents an hour.  
1948-74	1948	In general, however, we must continue to rely on our sound system of  collective bargaining to set wage scales. Workers' incomes should increase  at a rate consistent with the maintenance of sound price, profit, and wage  relationships and with increase of productivity.  
1948-75	1948	The Government's part in labor-management relations is now largely  controlled by the terms of the Labor-Management Relations Act of 1947. I  made my attitude clear on this act in my veto message to the Congress last  June. Nothing has occurred since to change my opinion of this law. As long  as it remains the law of the land, however, I shall carry out my  constitutional duty and administer it.  
1948-76	1948	As we look ahead we can understand the crucial importance of restraint and  wisdom in arriving at new labor-management contracts. Work stoppages would  result in a loss of production--a loss which could bring higher prices for  our citizens and could also deny the necessities of life to the  hard-pressed peoples of other lands. It is my sincere hope that the  representatives of labor and of industry will bear in mind that the Nation  as a whole has a vital stake in the success of their bargaining efforts.  
1948-77	1948	If we surmount our current economic difficulties, we can move ahead to a  great increase [p.7] in our national income which will enable all our  people to enjoy richer and fuller lives.  
1948-78	1948	All of us must advance together. One-fifth of our families now have average  annual incomes of less than $850. We must see that our gains in national  income are made more largely available to those with low incomes, whose  need is greatest. This will benefit us all through providing a stable  foundation of buying power to maintain prosperity.  
1948-79	1948	Business, labor, agriculture, and Government, working together, must  develop the policies which will make possible the realization of the full  benefits of our economic system.  
1948-80	1948	Our fifth goal is to achieve world peace based on principles of freedom and  justice and the equality of all nations.  
1948-81	1948	Twice within our generation, world wars have taught us that we cannot  isolate ourselves from the rest of the world.  
1948-82	1948	We have learned that the loss of freedom in any area of the world means a  loss of freedom to ourselves--that the loss of independence by any nation  adds directly to the insecurity of the United States and all free nations.  
1948-83	1948	We have learned that a healthy world economy is essential to world  peace--that economic distress is a disease whose evil effects spread far  beyond the boundaries of the afflicted nation.  
1948-84	1948	For these reasons the United States is vigorously following policies  designed to achieve a peaceful and prosperous world.  
1948-85	1948	We are giving, and will continue to give, our full support to the United  Nations. While that organization has encountered unforeseen and unwelcome  difficulties, I am confident of its ultimate success. We are also devoting  our efforts toward world economic recovery and the revival of world trade.  These actions are closely related and mutually supporting.  
1948-86	1948	We believe that the United States can be an effective force for world peace  only if it is strong. We look forward to the day when nations will decrease  their armaments. Yet so long as there remains serious opposition to the  ideals of a peaceful world, we must maintain strong armed forces.  
1948-87	1948	The passage of the National Security Act by the Congress at its last  session was a notable step in providing for the security of this country. A  further step which I consider of even greater importance is the early  provision for universal training. There are many elements in a balanced  national security program, all interrelated and necessary, but universal  training should be the foundation for them all. A favorable decision by the  Congress at an early date is of world importance. I am convinced that such  action is vital to the security of this Nation and to the maintenance of  its leadership.  
1948-88	1948	The United States is engaged today in many international activities  directed toward the creation of lasting peaceful relationships among  nations.  
1948-89	1948	We have been giving substantial aid to Greece and Turkey to assist those  nations in preserving their integrity against foreign pressures. Had it not  been for our aid, their situation today might well be radically different.  The continued integrity of those countries will have a powerful effect upon  other nations in the Middle East and in Europe struggling to maintain their  independence while they repair the damages of war.  
1948-90	1948	The United States has special responsibilities with respect to the  countries in which we have occupation forces: Germany, Austria, Japan, and  Korea. Our efforts to reach agreements on peace settlements for these  countries have so far been blocked. But we [p.8] shall continue to exert  our utmost efforts to obtain satisfactory settlements for each of these  nations.  
1948-91	1948	Many thousands of displaced persons, still living in camps overseas, should  be allowed entry into the United States. I again urge the Congress to pass  suitable legislation at once so that this Nation may do its share in caring  for the homeless and suffering refugees of all faiths. I believe that the  admission of these persons will add to the strength and energy of this  Nation.  
1948-92	1948	We are moving toward our goal of world peace in many ways. But the most  important efforts which we are now making are those which support world  economic reconstruction. We are seeking to restore the world trading system  which was shattered by the war and to remedy the economic paralysis which  grips many countries.  
1948-93	1948	To restore world trade we have recently taken the lead in bringing about  the greatest reduction of world tariffs that the world has ever seen. The  extension of the provisions of the Reciprocal Trade Agreements Act, which  made this achievement possible, is of extreme importance. We must also go  on to support the International Trade Organization, through which we hope  to obtain worldwide agreement on a code of fair conduct in international  trade.  
1948-94	1948	Our present major effort toward economic reconstruction is to support the  program for recovery developed by the countries of Europe. In my recent  message to the Congress, I outlined the reasons why it is wise and  necessary for the United States to extend this support.  
1948-95	1948	I want to reaffirm my belief in the soundness and the promise of this  proposal. When the European economy is strengthened, the product of its  industry will be of benefit to many other areas of economic distress. The  ability of free men to overcome hunger and despair will be a moral stimulus  to the entire world.  
1948-96	1948	We intend to work also with other nations in achieving world economic  recovery. We shall continue our cooperation with the nations of the Western  Hemisphere. A special program of assistance to China, to provide urgent  relief needs and to speed reconstruction, will be submitted to the  Congress.  
1948-97	1948	Unfortunately, not all governments share the hope of the people of the  United States that economic reconstruction in many areas of the world can  be achieved through cooperative effort among nations. In spite of these  differences we will go forward with our efforts to overcome economic  paralysis.  
1948-98	1948	No nation by itself can carry these programs to success; they depend upon  the cooperative and honest efforts of all participating countries. Yet the  leadership is inevitably ours.  
1948-99	1948	I consider it of the highest importance that the Congress should authorize  support for the European recovery program for the period from April 1,  1948, to June 30, 1952, with an initial amount for the first 15 months of  $6.8 billion. I urge the Congress to act promptly on this vital measure of  our foreign policy--on this decisive contribution to world peace.  
1948-100	1948	We are following a sound, constructive, and practical course in carrying  out our determination to achieve peace.  
1948-101	1948	We are fighting poverty, hunger, and suffering.  
1948-102	1948	This leads to peace--not war.  
1948-103	1948	We are building toward a world where all nations, large and small alike,  may live free from the fear of aggression. This leads to peace--not war.  
1948-104	1948	Above all else, we are striving to achieve a concord among the peoples of  the world based upon the dignity of the individual and the brotherhood of  man.  
1948-105	1948	This leads to peace--not war.  
1948-106	1948	We can go forward with confidence that we are following sound policies,  both at home and with other nations, which will lead us toward our great  goals for economic, social and moral achievement.  
1948-107	1948	As we enter the new year, we must surmount one major problem which affects  all our goals. That is the problem of inflation.  
1948-108	1948	Already inflation in this country is undermining the living standards of  millions of families. Food costs too much. Housing has reached fantastic  price levels. Schools and hospitals are in financial distress. Inflation  threatens to bring on disagreement and strife between labor and  management.  
1948-109	1948	Worst of all, inflation holds the threat of another depression, just as we  had a depression after the unstable boom following the First World War.  
1948-110	1948	When I announced last October that the Congress was being called into  session, I described the price increases which had taken place since June  1946. Wholesale prices had increased 40 percent; retail prices had  increased 23 percent.  
1948-111	1948	Since October prices have continued to rise. Wholesale prices have gone up  at an annual rate of 18 percent. Retail prices have gone up at an annual  rate of 10 percent.  
1948-112	1948	The events which have occurred since I presented my 10-point anti-inflation  program to the Congress in November have made it even clearer that all 10  points are essential.  
1948-113	1948	High prices must not be our means of rationing.  
1948-114	1948	We must deal effectively and at once with the high cost of living.  
1948-115	1948	We must stop the spiral of inflation.  
1948-116	1948	I trust that within the shortest possible time the Congress will make  available to the Government the weapons that are so desperately needed in  the fight against inflation.  
1948-117	1948	One of the most powerful anti-inflationary factors in our economy today is  the excess of Government revenues over expenditures.  
1948-118	1948	Government expenditures have been and must continue to be held at the  lowest safe levels. Since V-J day Federal expenditures have been sharply  reduced. They have been cut from more than $63 billion in the fiscal year  1946 to less than $38 billion in the present fiscal year. The number of  civilian employees has been cut nearly in half--from 3 3/4 million down to  2 million.  
1948-119	1948	On the other hand, Government revenues must not be reduced. Until inflation  has been stopped there should be no cut in taxes that is not offset by  additions at another point in our tax structure.  
1948-120	1948	Certain adjustments should be made within our existing tax structure that  will not affect total receipts, yet will adjust the tax burden so that  those least able to pay will have their burden lessened by the transfer of  a portion of it to those best able to pay.  
1948-121	1948	Many of our families today are suffering hardship because of the high cost  of living. At the same time profits of corporations have reached an  all-time record in 1947. Corporate profits total $17 billion after taxes.  This compared with $12.5 billion in 1946, the previous high year.  
1948-122	1948	Because of this extraordinarily high level of profits, corporations can  well afford to carry a larger share of the taxload at this time.  
1948-123	1948	During this period in which the high cost of living is bearing down on so  many of our families, tax adjustments should be made to ease their burden.  The low-income group particularly is being pressed very hard. To this group  a tax adjustment would result in a saving that could be used to buy the  necessities of life.  
1948-124	1948	I recommend therefore that, effective January 1, 1948, a cost of living tax  credit be extended to our people consisting of a credit of $40 to each  individual taxpayer and an additional credit of $40 for each dependent.  [p.10] Thus the income tax of a man with a wife and two children would be  reduced $160. The credit would be extended to all taxpayers, but it would  be particularly helpful to those in the low-income group.  
1948-125	1948	It is estimated that such a tax credit would reduce Federal revenue by $3.2  billion. This reduction should be made up by increasing the tax on  corporate profits in an amount that will produce this sum--with appropriate  adjustments for small corporations.  
1948-126	1948	This is the proper method of tax relief at this time. It gives relief to  those who need it most without cutting the total tax revenue of the  Government.  
1948-127	1948	When the present danger of inflation has passed we should consider tax  reduction based upon a revision of our entire tax structure.  
1948-128	1948	When we have conquered inflation, we shall be in a position to move forward  toward our chosen goals.  
1948-129	1948	As we do so, let us keep ever before us our high purposes. We are  determined that every citizen of this Nation shall have an equal right and  an equal opportunity to grow in wisdom and in stature and to take his place  in the control of his Nation's destiny.  
1948-130	1948	We are determined that the productive resources of this Nation shall be  used wisely and fully for the benefit of all.  
1948-131	1948	We are determined that the democratic faith of our people and the strength  of our resources shall contribute their full share to the attainment of  enduring peace in the world.  
1948-132	1948	It is our faith in human dignity that underlies these purposes. It is this  faith that keeps us a strong and vital people.  
1948-133	1948	This is a time to remind ourselves of these fundamentals. For today the  whole world looks to us for leadership.  
1948-134	1948	This is the hour to rededicate ourselves to the faith in mankind that makes  us strong.  
1948-135	1948	This is the hour to rededicate ourselves to the faith in God that gives us  confidence as we face the challenge of the years ahead.  
1949-1	1949	Mr. President, Mr. Speaker, Members of the Congress:  
1949-2	1949	I am happy to report to this 81st Congress that the state of the Union is  good. Our Nation is better able than ever before to meet the needs of the  American people, and to give them their fair chance in the pursuit of  happiness. This great Republic is foremost among the nations of the world  in the search for peace.  
1949-3	1949	During the last 16 years, our people have been creating a society which  offers new opportunities for every man to enjoy his share of the good  things of life.  
1949-4	1949	In this society, we are conservative about the values and principles which  we cherish; but we are forward-looking in protecting those values and  principles and in extending their benefits. We have rejected the  discredited theory that the fortunes of the Nation should be in the hands  of a privileged few. We have abandoned the "trickledown" concept of  national prosperity. Instead, we believe that our economic system should  rest on a democratic foundation and that wealth should be created for the  benefit of all.  
1949-5	1949	The recent election shows that the people of the United States are in favor  of this kind of society and want to go on improving it.  
1949-6	1949	The American people have decided that poverty is just as wasteful and just  as unnecessary as preventable disease. We have pledged our common resources  to help one another in the hazards and struggles of individual life. We  believe that no unfair prejudice or artificial distinction should bar any  citizen of the United States of America from an education, or from good  health, or from a job that he is capable of performing.  
1949-7	1949	The attainment of this kind of society demands the best efforts of every  citizen in every walk of life, and it imposes increasing responsibilities  on the Government.  
1949-8	1949	The Government must work with industry, labor, and the farmers in keeping  our economy running at full speed. The Government must see that every  American has a chance to obtain his fair share of our increasing abundance.  These responsibilities go hand in hand.  
1949-9	1949	We cannot maintain prosperity unless we have a fair distribution of  opportunity and a widespread consumption of the products of our factories  and farms.  
1949-10	1949	Our Government has undertaken to meet these responsibilities.  
1949-11	1949	We have made tremendous public investments in highways, hydroelectric  power projects, soil conservation, and reclamation. We have established a  system of social security. We have enacted laws protecting the rights and  the welfare of our working people and the income of our farmers. These  Federal policies have paid for themselves many times over. They have  strengthened the material foundations of our democratic ideals. Without  them, our present prosperity would be impossible.  
1949-12	1949	Reinforced by these policies, our private enterprise system has reached new  heights of production. Since the boom year of 1929, while our population  has increased by only 20 percent, our agricultural production has increased  by 45 percent, and our industrial production has increased by 75 percent.  We are turning out far more goods and more wealth per worker than we have  ever done before.  
1949-13	1949	This progress has confounded the gloomy prophets--at home and abroad who  predicted the downfall of American capitalism. The people of the United  States, going their own way, confident in their own powers, have achieved  the greatest prosperity the world has even seen.  
1949-14	1949	But, great as our progress has been, we still have a long way to go.  
1949-15	1949	As we look around the country, many of our shortcomings stand out in bold  relief.  
1949-16	1949	We are suffering from excessively high prices.  
1949-17	1949	Our production is still not large enough to satisfy our demands.  
1949-18	1949	Our minimum wages are far too low.  
1949-19	1949	Small business is losing ground to growing monopoly.  
1949-20	1949	Our farmers still face an uncertain future. And too many of them lack the  benefits of our modern civilization.  
1949-21	1949	Some of our natural resources are still being wasted.  
1949-22	1949	We are acutely short of electric power, although the means for developing  such power are abundant.  
1949-23	1949	Five million families are still living in slums and firetraps. Three  million families share their homes with others.  
1949-24	1949	Our health is far behind the progress of medical science. Proper medical  care is so expensive that it is out of the reach of the great majority of  our citizens.  
1949-25	1949	Our schools, in many localities, are utterly inadequate.  
1949-26	1949	Our democratic ideals are often thwarted by prejudice and intolerance.  
1949-27	1949	Each of these shortcomings is also an opportunity-an opportunity for the  Congress and the President to work for the good of the people.  
1949-28	1949	Our first great opportunity is to protect our economy against the evils of  "boom and bust."  
1949-29	1949	This objective cannot be attained by government alone. Indeed, the greater  part of the task must be performed by individual efforts under our system  of free enterprise. We can keep our present prosperity, and increase it,  only if free enterprise and free government work together to that end.  
1949-30	1949	We cannot afford to float along ceaselessly on a postwar boom until it  collapses. It is not enough merely to prepare to weather a recession if it  comes. Instead, government and business must work together constantly to  achieve more and more jobs and more and more production--which mean more  and more prosperity for all the people.  
1949-31	1949	The business cycle is man-made; and men of good will, working together, can  smooth it out.  
1949-32	1949	So far as business is concerned, it should plan for steady, vigorous  expansion--seeking always to increase its output, lower its prices, and  avoid the vices of monopoly and restriction. So long as business does this,  it will be contributing to continued prosperity, and it will have the help  and encouragement of the Government.  
1949-33	1949	The Employment Act of 1946 pledges the Government to use all its resources  to promote maximum employment, production, and purchasing power. This means  that the Government is firmly committed to protect business and the people  against the dangers of recession and against the evils of inflation. This  means that the Government must adapt its plans and policies to meet  changing circumstances.  
1949-34	1949	At the present time, our prosperity is threatened by inflationary pressures  at a number of critical points in our economy. And the Government must be  in a position to take effective action at these danger spots. To that end,  I recommend that the Congress enact legislation for the following  purposes:  
1949-35	1949	First, to continue the power to control consumer credit and enlarge the  power to control bank credit.  
1949-36	1949	Second, to grant authority to regulate speculation on the commodity  exchanges.  
1949-37	1949	Third, to continue export control authority and to provide adequate  machinery for its enforcement.  
1949-38	1949	Fourth, to continue the priorities and allocation authority in the field of  transportation.  
1949-39	1949	Fifth, to authorize priorities and allocations for key materials in short  supply.  
1949-40	1949	Sixth, to extend and strengthen rent control.  
1949-41	1949	Seventh, to provide standby authority to impose price ceilings for scarce  commodities which basically affect essential industrial production or the  cost of living, and to limit unjustified wage adjustments which would force  a break in an established price ceiling.  
1949-42	1949	Eighth, to authorize an immediate study of the adequacy of production  facilities for materials in critically short supply, such as steel; and, if  found necessary, to authorize Government loans for the expansion of  production facilities to relieve such shortages, and to authorize the  construction of such facilities directly, if action by private industry  fails to meet our needs.  
1949-43	1949	The Economic Report, which I shall submit to the Congress shortly, will  discuss in detail the economic background for these recommendations.  
1949-44	1949	One of the most important factors in maintaining prosperity is the  Government's fiscal policy. At this time, it is essential not only that the  Federal budget be balanced, but also that there be a substantial surplus to  reduce inflationary pressures, and to permit a sizable reduction in the  national debt, which now stands at $252 billion. I recommend, therefore,  that the Congress enact new tax legislation to bring in an additional $4  billion of Government revenue. This should come principally from additional  corporate taxes. A portion should come from revised estate and gift taxes.  Consideration should be given to raising personal income rates in the  middle and upper brackets.  
1949-45	1949	If we want to keep our economy running in high gear, we must be sure that  every group has the incentive to make its full contribution to the national  welfare. At present, the working men and women of the Nation are unfairly  discriminated against by a statute that abridges their rights, curtails  their constructive efforts, and hampers our system of free collective  bargaining. That statute is the Labor-Management Relations Act of 1947,  sometimes called the Taft-Hartley Act.  
1949-46	1949	That act should be repealed!  
1949-47	1949	The Wagner Act should be reenacted. However, certain improvements, which I  recommended to the Congress 2 years ago, are needed. Jurisdictional strikes  and unjustified secondary boycotts should be prohibited. The use of  economic force to decide issues arising out of the interpretation of  existing contracts should be prevented. Without endangering our democratic  freedoms, means should be provided for setting up machinery for preventing  strikes in vital industries which affect the public interest.  
1949-48	1949	The Department of Labor should be rebuilt and strengthened and those units  properly belonging within that department should be placed in it.  
1949-49	1949	The health of our economy and its maintenance at high levels further  require that the minimum wage fixed by law should be raised to at least 75  cents an hour.  
1949-50	1949	If our free enterprise economy is to be strong and healthy, we must  reinvigorate the forces of competition. We must assure small business the  freedom and opportunity to grow and prosper. To this purpose, we should  strengthen our antitrust laws by closing those loopholes that permit  monopolistic mergers and consolidations.  
1949-51	1949	Our national farm program should be improved-not only in the interest of  the farmers, but for the lasting prosperity of the whole Nation. Our goals  should be abundant farm production and parity income for agriculture.  Standards of living on the farm should be just as good as anywhere else in  the country.  
1949-52	1949	Farm price supports are an essential part of our program to achieve these  ends. Price supports should be used to prevent farm price declines which  are out of line with general price levels, to facilitate adjustments in  production to consumer demands, and to promote good land use. Our price  support legislation must be adapted to these objectives. The authority of  the Commodity Credit Corporation to provide adequate storage space for  crops should be restored.  
1949-53	1949	Our program for farm prosperity should also seek to expand the domestic  market for agricultural products, particularly among low-income groups, and  to increase and stabilize foreign markets.  
1949-54	1949	We should give special attention to extending modern conveniences and  services to our farms. Rural electrification should be pushed forward. And  in considering legislation relating to housing, education, health, and  social security, special attention should be given to rural problems.  
1949-55	1949	Our growing population and the expansion of our economy depend upon the  wise management of our land, water, forest, and mineral wealth. In our  present dynamic economy, the task of conservation is not to lockup our  resources but to develop and improve them. Failure, today, to make the  investments which are necessary to support our progress in the future would  be false economy.  
1949-56	1949	We must push forward the development of our rivers for power, irrigation,  navigation, and flood control. We should apply the lessons of our Tennessee  Valley experience to our other great river basins.  
1949-57	1949	I again recommend action be taken by the Congress to approve the St.  Lawrence Seaway and Power project. This is about the fifth time I have  recommended it.  
1949-58	1949	We must adopt a program for the planned use of the petroleum reserves under  the sea, which are--and must remain--vested in the Federal Government. We  must extend our programs of soil conservation. We must place our forests on  a sustained yield basis, and encourage the development of new sources of  vital minerals.  
1949-59	1949	In all this we must make sure that the benefits of these public  undertakings are directly available to the people. Public power should be  carried to consuming areas by public transmission lines where necessary to  provide electricity at the lowest possible rates. Irrigation waters should  serve family farms and not land speculators.  
1949-60	1949	The Government has still other opportunities--to help raise the standard of  living of our citizens. These opportunities lie in the fields of social  security, health, education, housing, and civil rights.  
1949-61	1949	The present coverage of the social security laws is altogether inadequate;  the benefit payments are too low. One-third of our workers are not covered.  Those who receive old-age and survivors insurance benefits receive an  average payment of only $25 a month. Many others who cannot work because  they are physically disabled are left to the mercy of charity. We should  expand our social security program, both as to the size of the benefits and  the extent of coverage, against the economic hazards due to unemployment,  old age, sickness, and disability.  
1949-62	1949	We must spare no effort to raise the general level of health in this  country. In a nation as rich as ours, it is a shocking fact that tens of  millions lack adequate medical care. We are short of doctors, hospitals,  nurses. We must remedy these shortages. Moreover, we need--and we must have  without further delay--a system of prepaid medical insurance which will  enable every American to afford good medical care.  
1949-63	1949	It is equally shocking that millions of our children are not receiving a  good education. Millions of them are in overcrowded, obsolete buildings. We  are short of teachers, because teachers' salaries are too low to attract  new teachers, or to hold the ones we have. All these school problems will  become much more acute as a result of the tremendous increase in the  enrollment in our elementary schools in the next few years. I cannot repeat  too strongly my desire for prompt Federal financial aid to the States to  help them operate and maintain their school systems.  
1949-64	1949	The governmental agency which now administers the programs of health,  education, and social security should be given full departmental status.  
1949-65	1949	The housing shortage continues to be acute. As an immediate step, the  Congress should enact the provisions for low-rent public housing, slum  clearance, farm housing, and housing research which I have repeatedly  recommended. The number of low-rent public housing units provided for in the  legislation should be increased to 1 million units in the next 7 years.  Even this number of units will not begin to meet our need for new housing.  
1949-66	1949	Most of the houses we need will have to be built by private enterprise,  without public subsidy. By producing too few rental units and too large a  proportion of high-priced houses, the building industry is rapidly pricing  itself out of the market. Building costs must be lowered.  
1949-67	1949	The Government is now engaged in a campaign to induce all segments of the  building industry to concentrate on the production of lower priced housing.  Additional legislation to encourage such housing will be submitted.  
1949-68	1949	The authority which I have requested, to allocate materials in short supply  and to impose price ceilings on such materials, could be used, if found  necessary, to channel more materials into homes large enough for family  life at prices which wage earners can afford.  
1949-69	1949	The driving force behind our progress is our faith in our democratic  institutions. That faith is embodied in the promise of equal rights and  equal opportunities which the founders of our Republic proclaimed to their  countrymen and to the whole world.  
1949-70	1949	The fulfillment of this promise is among the highest purposes of  government. The civil rights proposals I made to the 80th Congress, I now  repeat to the 81st Congress. They should be enacted in order that the  Federal Government may assume the leadership and discharge the obligations  dearly placed upon it by the Constitution.  
1949-71	1949	I stand squarely behind those proposals.  
1949-72	1949	Our domestic programs are the foundation of our foreign policy. The world  today looks to us for leadership because we have so largely realized,  within our borders, those benefits of democratic government for which most  of the peoples of the world are yearning.  
1949-73	1949	We are following a foreign policy which is the outward expression of the  democratic faith we profess. We are doing what we can to encourage free  states and free peoples throughout the world, to aid the suffering and  afflicted in foreign lands, and to strengthen democratic nations against  aggression.  
1949-74	1949	The heart of our foreign policy is peace. We are supporting a world  organization to keep peace and a world economic policy to create prosperity  for mankind. Our guiding star is the principle of international  cooperation. To this concept we have made a national commitment as profound  as anything in history.  
1949-75	1949	To it we have pledged our resources and our honor.  
1949-76	1949	Until a system of world security is established upon which we can safely  rely, we cannot escape the burden of creating and maintaining armed forces  sufficient to deter aggression. We have made great progress in the last  year in the effective organization of our Armed Forces, but further  improvements in our national security legislation are necessary. Universal  training is essential to the security of the United States.  
1949-77	1949	During the course of this session I shall have occasion to ask the Congress  to consider several measures in the field of foreign policy. At this time,  I recommend that we restore the Reciprocal Trade Agreements Act to full  effectiveness, and extend it for 3 years. We should also open our doors to  displaced persons without unfair discrimination.  
1949-78	1949	It should be clear by now to all citizens that we are not seeking to freeze  the status quo. We have no intention of preserving the injustices of the  past. We welcome the constructive efforts being made by many nations to  achieve a better life for their citizens. In the European recovery program,  in our good-neighbor policy and in the United Nations, we have begun to  batter down those national walls which block the economic growth and the  social advancement of the peoples of the world.  
1949-79	1949	We believe that if we hold resolutely to this course, the principle of  international cooperation will eventually command the approval even of  those nations which are now seeking to weaken or subvert it.  
1949-80	1949	We stand at the opening of an era which can mean either great achievement  or terrible catastrophe for ourselves and for all mankind.  
1949-81	1949	The strength of our Nation must continue to be used in the interest of all  our people rather than a privileged few. It must continue to be used  unselfishly in the struggle for world peace and the betterment of mankind  the world over.  
1949-82	1949	This is the task before us.  
1949-83	1949	It is not an easy one. It has many complications, and there will be strong  opposition from selfish interests.  
1949-84	1949	I hope for cooperation from farmers, from labor, and from business. Every  segment of our population and every individual has a right to expect from  our Government a fair deal.  
1949-85	1949	In 1945, when I came down before the Congress for the first time on April  16, I quoted to you King Solomon's prayer that he wanted wisdom and the  ability to govern his people as they should be governed. I explained to you  at that time that the task before me was one of the greatest in the history  of the world, and that it was necessary to have the complete cooperation of  the Congress and the people of the United States.  
1949-86	1949	Well now, we are taking a new start with the same situation. It is  absolutely essential that your President have the complete cooperation of  the Congress to carry out the great work that must be done to keep the  peace in this world, and to keep this country prosperous.  
1949-87	1949	The people of this great country have a right to expect that the Congress  and the President will work in closest cooperation with one objective--the  welfare of the people of this Nation as a whole.  
1949-88	1949	In the months ahead I know that I shall be able to cooperate with this  Congress.  
1949-89	1949	Now, I am confident that the Divine Power which has guided us to this time  of fateful responsibility and glorious opportunity will not desert us now.  
1949-90	1949	With that help from Almighty God which we have humbly acknowledged at every  turning point in our national life, we shall be able to perform the great  tasks which He now sets before us.  
1950-1	1950	Mr. President, Mr. Speaker, Members of the Congress:  
1950-2	1950	A year ago I reported to this Congress that the state of the Union was  good. I am happy to be able to report to you today that the state of the  Union continues to be good. Our Republic continues to increase in the  enjoyment of freedom within its borders, and to offer strength and  encouragement to all those who love freedom throughout the world.  
1950-3	1950	During the past year we have made notable progress in strengthening the  foundations of peace and freedom, abroad and at home.  
1950-4	1950	We have taken important steps in securing the North Atlantic community  against aggression. We have continued our successful support of European  recovery. We have returned to our established policy of expanding  international trade through reciprocal agreement. We have strengthened our  support of the United Nations.  
1950-5	1950	While great problems still confront us, the greatest danger has  receded--the possibility which faced us 3 years ago that most of Europe and  the Mediterranean area might collapse under totalitarian pressure. Today,  the free peoples of the world have new vigor and new hope for the cause of  peace.  
1950-6	1950	In our domestic affairs, we have made notable advances toward broader  opportunity and a better life for all our citizens.  
1950-7	1950	We have met and reversed the first significant downturn in economic  activity since the war. In accomplishing this, Government programs for  maintaining employment and purchasing power have been of tremendous  benefit. As the result of these programs, and the wisdom and good judgment  of our businessmen and workers, major readjustments have been made without  widespread suffering.  
1950-8	1950	During the past year, we have also made a good start in providing housing  for low-income groups; we have raised minimum wages; we have gone forward  with the development of our natural resources; we have given a greater  assurance of stability to the farmer; and we have improved the organization  and efficiency of our Government.  
1950-9	1950	Today, by the grace of God, we stand a free and prosperous nation with  greater possibilities for the future than any people ever had before in the  history of the world.  
1950-10	1950	We are now, in this year of 1950, nearing the midpoint of the 20th  century.  
1950-11	1950	The first half of this century will be known as the most turbulent and  eventful period in recorded history. The swift pace of events promises to  make the next 50 years decisive in the history of man on this planet.  
1950-12	1950	The scientific and industrial revolution which began two centuries ago has,  in the last 50 years, caught up the peoples of the globe in a common  destiny. Two world-shattering wars have proved that no corner of the earth  can be isolated from the affairs of mankind.  
1950-13	1950	The human race has reached a turning point. Man has opened the secrets of  nature and mastered new powers. If he uses them wisely, he can reach new  heights of civilization. If he uses them foolishly, they may destroy him.  
1950-14	1950	Man must create the moral and legal framework for the world which will  insure that his new powers are used for good and not for evil. In shaping  the outcome, the people of the United States will play a leading role.  
1950-15	1950	Among all the great changes that have occurred in the last 50 years, none  is more important than the change in the position of the United States in  world affairs. Fifty years ago we were a country devoted largely to our own  internal affairs. Our industry was growing, and we had new interests in the  Far East and in the Caribbean, but we were primarily concerned with the  development of vast areas of our own continental territory.  
1950-16	1950	Today, our population has doubled. Our national production has risen from  about $50 billion, in terms of today's prices, to the staggering figure of  $255 billion a year. We have a more productive economic system and a  greater industrial potential than any other nation on the globe. Our  standard of living is an inspiration for all other peoples. Even the  slightest changes in our economic and social life have their effect on  other countries all around the world.  
1950-17	1950	Our tremendous strength has brought with it tremendous responsibilities. We  have moved from the outer edge to the center of world affairs. Other  nations look to us for a wise exercise of our economic and military  strength, and for vigorous support of the ideals of representative  government and a free society. We will not fail them.  
1950-18	1950	Our objective in the world is peace. Our country has joined with others in  the task of achieving peace. We know now that this is not an easy task, or  a short one. But we are determined to see it through. Both of our great  political parties are committed to working together--and I am sure they  will continue to work together--to achieve this end. We are prepared to  devote our energy and our resources to this task, because we know that our  own security and the future of mankind are at stake.  
1950-19	1950	Right here, I want to say that no one appreciates more than I the  bipartisan cooperation in foreign affairs which has been enjoyed by this  administration.  
1950-20	1950	Our success in working with other nations to achieve peace depends largely  on what we do at home. We must preserve our national strength. Strength is  not simply a matter of arms and force. It is a matter of economic growth,  and social health, and vigorous institutions, public and private. We can  achieve peace only if we maintain our productive energy, our democratic  institutions, and our firm belief in individual freedom.  
1950-21	1950	Our surest guide in the days that lie ahead will be the spirit in which  this great Republic was rounded. We must make our decisions in the  conviction that all men are created equal, that they are equally entitled  to life, liberty, and the pursuit of happiness, and that the duty of  government is to serve these ends.  
1950-22	1950	This country of ours has experienced many blessings, but none greater than  its dedication to these principles. At every point in our history, these  ideals have served to correct our failures and shortcomings, to spur us on  to greater efforts, and to keep clearly before us the primary purpose of  our existence as a nation. They have enshrined for us, a principle of  government, the moral imperative to do justice, and the divine command to  men to love one another.  
1950-23	1950	These principles give meaning to all that we do.  
1950-24	1950	In foreign policy, they mean that we can never be tolerant of oppression or  tyranny. They mean that we must throw our weight on the side of greater  freedom and a better life for all peoples. These principles confirm us in  carrying out the specific programs for peace which we have already begun.  
1950-25	1950	We shall continue to give our wholehearted support to the United Nations.  We believe that this organization can ultimately provide the framework of  international law and morality without which mankind cannot survive. It has  already set up new standards for the conduct of nations in the Declaration  of Human Rights and the Convention on Genocide. It is moving ahead to give  meaning to the concept of world brotherhood through a wide variety of  cultural, economic, and technical activities.  
1950-26	1950	The events of the past year again showed the value of the United Nations in  bringing about the peaceful adjustment of tense international  controversies. In Indonesia and in Palestine the efforts of the United  Nations have put a stop to bloodshed and paved the way to peaceful  settlements.  
1950-27	1950	We are working toward the time when the United Nations will control weapons  of mass destruction and will have the forces to preserve international law  and order. While the world remains unsettled, however, and as long as our  own security and the security of the free world require, we will maintain a  strong and well-balanced defense organization. The Selective Service System  is an essential part of our defense plans, and it must be continued.  
1950-28	1950	Under the principles of the United Nations Charter we must continue to  share in the common defense of free nations against aggression. At the last  session this Congress laid the basis for this joint effort. We now must put  into effect the common defense plans that are being worked out.  
1950-29	1950	We shall continue our efforts for world economic recovery, because world  prosperity is the only sure foundation of a permanent peace.  
1950-30	1950	As an immediate means to this end we must continue our support of the  European recovery program. This program has achieved great success in the  first 2 years of its operation, but it has not yet been completed. If we  were to stop this program now, or cripple it, just because it is  succeeding, we should be doing exactly what the enemies of democracy want  us to do. We should be just as foolish as a man who, for reasons of false  economy, failed to put a roof on his house after building the foundation  and the walls.  
1950-31	1950	World prosperity also requires that we do all we can to expand world trade.  As a major step in this direction we should promptly join the International  Trade Organization. The purpose of this organization, which the United  States has been foremost in creating, is to establish a code of fair  practice, and an international authority for adjusting differences in  international commercial relations. It is an effort to prevent the kind of  anarchy and irresponsibility in world trade which did so much to bring  about the world depression of the 1930's. An expanding world economy  requires the improvement of living standards and the development of  resources in areas where human poverty and misery now prevail. Without such  improvement the recovery of Europe and the future of our own economy will  not be secure. I urge that the Congress adopt the legislation now before it  to provide for increasing the flow of technical assistance and capital  investment in underdeveloped regions.  
1950-32	1950	It is more essential now than ever, if the ideals of freedom and  representative government are to prevail in these areas, and particularly  in the Far East, that their peoples experience, in their own lives, the  benefits of scientific and economic advances. This program will require the  movement of large amounts of capital from the industrial nations, and  particularly from the United States, to productive uses in the  underdeveloped areas of the world. Recent world events make prompt action  imperative.  
1950-33	1950	This program is in the interest of all peoples-and has nothing in common  with either the old imperialism of the last century or the new imperialism  of the Communists.  
1950-34	1950	Our aim for a peaceful, democratic world of free peoples will be achieved  in the long run, not by force of arms, but by an appeal to the minds and  hearts of men. If the peace policy of the democratic nations is to be  successful, they must demonstrate that the benefits of their way of life  can be increased and extended to all nations and all races.  
1950-35	1950	In the world today we are confronted with the danger that the rising demand  of people everywhere for freedom and a better life may be corrupted and  betrayed by the false promises of communism. In its ruthless struggle for  power, communism seizes upon our imperfections, and takes advantage of the  delays and setbacks which the democratic nations experience in their effort  to secure a better life for their citizens. This challenge to us is more  than a military challenge. It is a challenge to the honesty of our  profession of the democratic faith; it is a challenge to the efficiency and  stability of our economic system; it is a challenge to the willingness to  work with other peoples for world peace and for world prosperity.  
1950-36	1950	For my part I welcome that challenge. I believe that our country, at this  crucial point in world history, will meet that challenge successfully. I  believe that, in cooperation with the other free nations of the world, we  shall extend the full benefits of the democratic way of life to millions  who do not now enjoy them, and preserve mankind from dictatorship and  tyranny.  
1950-37	1950	I believe that we shall succeed in our struggle for this peace, because I  have seen the success we have had in our own country in following the  principles of freedom. Over the last 50 years, the ideals of liberty and  equal opportunity to which this Nation is dedicated have been increasingly  realized in the lives of our people.  
1950-38	1950	The ideal of equal opportunity no longer means simply the opportunity which  a man has to advance beyond his fellows. Some of our citizens do achieve  greater success than others as a reward for individual merit and effort,  and this is as it should be. At the same time our country must be more than  a land of opportunity for a select few. It must be a land of opportunity  for all of us. In such a land we can grow and prosper together.  
1950-39	1950	The simple truth that we can all go forward together is often questioned by  selfish or shortsighted persons. It is strange that this is so, for this  proposition is so clearly demonstrated by our national history. During the  last 50 years, for example, our Nation has grown enormously in material  well-being. This growth has come about, not by concentrating the benefits  of our progress in the hands of a few, but by increasing the wealth of the  great body of our Nation and our citizens.  
1950-40	1950	In the last 50 years the income of the average family has increased so  greatly that its buying power has doubled. The average hours of work have  declined from 60 to 40 a week, the whole hourly production of the average  worker has tripled. Average wages, allowing for price changes, have  increased from about 45 cents an hour to $1.40 an hour.  
1950-41	1950	We have accomplished what to earlier ages of mankind would have been a  miracle--we work shorter hours, we produce more, and we live better.  
1950-42	1950	Increasing freedom from poverty and drudgery has given a fuller meaning to  American life. Our people are better educated; we have more opportunities  for travel and recreation and enjoyment of the arts. We enjoy more personal  liberty in the United States today than ever before.  
1950-43	1950	If we can continue in the spirit of cooperative adventure which has marked  the recent years of our progress, we can expect further scientific  advances, further increases in our standard of living, and a still wider  enjoyment of democratic freedom.  
1950-44	1950	No one, of course, can foretell the future exactly. However, if we assume  that we shall grow as fast in the future as we have grown in the past, we  can get a good idea of how much our country should grow in the next 50  years.  
1950-45	1950	At present our total national production is $255 billion a year. Our  working population and our output per worker are increasing. If our  productive power continues to increase at the same rate as it has increased  over the past 50 years, our total national production 50 years from now  will be nearly four times as much as it is today. Allowing for the expected  growth in population, this would mean that the real income of the average  family in the year 2000 A.D. would be about three times what it is today.  
1950-46	1950	These are estimates of what we can do in the future, but we can reach these  heights only if we follow the right policies. We have learned by bitter  experience that progress is not automatic--that wrong policies lead to  depression and disaster. We cannot achieve these gains unless we have a  stable economy and avoid the catastrophes of boom and bust that have set us  back in the past.  
1950-47	1950	These gains cannot be achieved unless our businessmen maintain their spirit  of initiative and enterprise and operate in a competitive economy. They  cannot be achieved unless our workingmen and women and their unions help to  increase productivity and obtain for labor a fair share of the benefits of  our economic system. They cannot be achieved unless we have a stable and  prosperous agriculture. They cannot be achieved unless we conserve and  develop our natural resources in the public interest. Our system will not  work unless our people are healthy, well-educated, and confident of the  future. It will not work unless all citizens can participate fully in our  national life.  
1950-48	1950	In achieving these gains the Government has a special responsibility to  help create and maintain the conditions which will permit the growth we  know is possible. Foremost among these conditions is the need for a fair  distribution of our increasing prosperity among all the great groups of our  population who help to bring it about-labor, business, agriculture.  
1950-49	1950	Businessmen must continue to have the incentives necessary for investment  and for the development of new lines of enterprise. In the future growth of  this country, lie possibilities for hundreds of thousands of new and  independent businesses. As our national production increases, as it doubles  and redoubles in the next 50 years, the number of independent and competing  enterprises should also increase. If the number does not increase, our  constantly growing economy will fall under the control of a few dominant  economic groups whose powers will be so great that they will be a challenge  to democratic institutions.  
1950-50	1950	To avoid this danger, we must curb monopoly and provide aids to independent  business so that it may have the credit and capital to compete in a system  of free enterprise. I recommend that the Congress complete action at this  session on the pending bill to close the loopholes in the Clayton Act which  now permit monopolistic mergers. I also hope before this session is over to  transmit to the Congress a series of proposals to strengthen the  antimonopoly laws, to assist small business, and to encourage the growth of  new enterprises.  
1950-51	1950	In the case of labor, free collective bargaining must be protected and  encouraged. Collective bargaining is not only a fundamental economic  freedom for labor. It is also a strengthening and stabilizing influence for  our whole economy.  
1950-52	1950	The Federal statute now governing labor relations is punitive in purpose  and one-sided in operation. This statute is, and always has been,  inconsistent with the practice of true and effective collective bargaining.  It should be repealed and replaced by a law that is fair to all and in  harmony with our democratic ideals.  
1950-53	1950	A full understanding of the problems of modern labor relations is of such  importance that I recommend the establishment of a labor extension service  to encourage educational activities in this field.  
1950-54	1950	Another essential for our continued growth is a stable and prosperous  agriculture. For many years we have been building a program to give the  farmer a reasonable measure of protection against the special hazards to  which he is exposed. That program was improved at the last session of the  Congress. However, our farm legislation is still not adequate.  
1950-55	1950	Although the Congress has properly declared as a matter of national policy  that safeguards must be maintained against slumps in farm prices, there are  serious shortcomings in the methods now available for carrying out this  policy. Mandatory price supports should be provided for the commodities not  now covered which are major sources of farm income.  
1950-56	1950	Moreover, we should provide a method of supporting farm income at fair  levels which will, at the same time, avoid piling up unmanageable surpluses  and allow consumers to obtain the full benefit of our abundant agricultural  production. A system of production payments gives the greatest promise of  accomplishing this purpose. I recommend that the use of such a system be  authorized.  
1950-57	1950	One of the most important factors in our continued growth is the  construction of more good, up-to-date housing. In a country such as ours  there is no reason why decent homes should not be within the reach of all.  With the help of various Government programs we have made great progress in  the last few years in increasing the number of homes.  
1950-58	1950	Despite this increase, there is still an acute shortage of housing for the  lower and middle-income groups, especially in large metropolitan areas. We  have laid the groundwork for relieving the plight of lower-income families  in the Housing Act of 1949. To aid the middle-income families, I recommend  that the Congress enact new legislation authorizing a vigorous program to  help cooperatives and other nonprofit groups build housing which these  families can afford.  
1950-59	1950	Rent control has done a great deal to prevent the housing shortage from  having had worse effects during this postwar period of adjustment. Rent  control is still necessary to prevent widespread hardship and sharp  curtailment of the buying power of millions of consumers in metropolitan  areas. I recommend, therefore, that rent control be continued for another  year.  
1950-60	1950	If we are to achieve a better life for all, the natural resources of the  country must be regarded as a public trust. We must use our precious assets  of soil, water, and forest, and grassland in such a way that they become  constantly more productive and more valuable. Government investment in the  conservation and development of our resources is necessary to the future  economic expansion of the country.  
1950-61	1950	We need to enlarge the production and transmission of public power. That is  true not only in those regions which have already received great benefits  from Federal power projects, but also in regions such as New England where  the benefits of large-scale public power development have not yet been  experienced.  
1950-62	1950	In our hydroelectric and irrigation undertakings, as well as in our other  resource programs, we must continue policies to assure that their benefits  will be spread among the many and not restricted to the favored few.  
1950-63	1950	Important resource legislation which should be passed at this session  includes the authorization of the St. Lawrence seaway and power project and  the establishment of the Columbia Valley Administration--the establishment  of the Columbia Valley Administration, I don't want you to miss that.  
1950-64	1950	Through wise Government policies and Government expenditures for the  conservation and development of our natural resources, we can be sure of  transmitting to our children and our children's children a country far  richer and more productive than the one we know today.  
1950-65	1950	The value of our natural resources is constantly being increased by the  progress of science. Research is finding new ways of using such natural  assets as minerals, sea water, and plant life. In the peaceful development  of atomic energy, particularly, we stand on the threshold of new wonders.  The first experimental machines for producing useful power from atomic  energy are now under construction. We have made only the first beginnings  in this field, but in the perspective of history they may loom larger than  the first airplane, or even the first tools that started man on the road to  civilization.  
1950-66	1950	To take full advantage of the increasing possibilities of nature we must  equip ourselves with increasing knowledge. Government has a responsibility  to see that our country maintains its position in the advance of science.  As a step toward this end, the Congress should complete action on the  measure to create a National Science Foundation.  
1950-67	1950	Another duty of the Government is to promote the economic security, the  health, and the education of its citizens. By so doing, we strengthen both  our economy and the structure of our society. In a nation as rich as ours,  all citizens should be able to live in decency and health.  
1950-68	1950	Our Social Security System should be developed into the main reliance of  our people for basic protection against the economic hazards of old-age,  unemployment, and illness. I earnestly hope that the Congress will complete  action at this session on legislation to increase the benefits and extend  the coverage of old-age and survivors' insurance. The widespread movement  to provide pensions in private industry dramatizes the need for  improvements in the public insurance system.  
1950-69	1950	I also urge that the Congress strengthen our unemployment compensation law  to meet present-day needs more adequately. The economic downturn of the  past year was the first real test that our system of unemployment insurance  has had to meet. That test has proved the wisdom of the system, but it has  also made strikingly apparent the need for improving its operation and  increasing its coverage and its benefits.  
1950-70	1950	In the field of health there are immense opportunities to extend to more of  our people the benefits of the amazing advances in medical science. We have  made a good beginning in expanding our hospitals, but we must also go on to  remedy the shortages of doctors, nurses, and public health services, and to  establish a system of medical insurance which will enable all Americans to  afford good medical care.  
1950-71	1950	We must take immediate steps to strengthen our educational system. In many  parts of our country, young people are being handicapped for life because  of a poor education. The rapidly increasing number of children of school  age, coupled with the shortage of qualified teachers, makes this problem  more critical each year. I believe that the Congress should no longer delay  in providing Federal assistance to the States so that they can maintain  adequate schools.  
1950-72	1950	As we go forward in achieving greater economic security and greater  opportunity for all our people, we should make every effort to extend the  benefits of our democratic institutions to every citizen. The religious  ideals which we profess, and the heritage of freedom which we have received  from the past, clearly place that duty upon us. I again urge the Congress  to enact the civil rights proposals I made in February 1948. These  proposals are for the enactment of Federal statutes which will protect all  our people in the exercise of their democratic rights and their search for  economic opportunity, grant statehood to Alaska and Hawaii, provide a  greater measure of self-government for our island possessions, and accord  home rule to the District of Columbia. Some of those proposals have been  before the Congress for a long time. Those who oppose them, as well as  those who favor them, should recognize that it is the duty of the elected  representatives of the people to let these proposals come to a vote.  
1950-73	1950	Our democratic ideals, as well as our best interests, require that we do  our fair share in providing homes for the unfortunate victims of war and  tyranny. In so doing, we shall add strength to our democracy through the  abilities and skills which these men and women will bring here. I urge the  prompt enactment by the Congress of the legislation now before it to extend  and broaden the existing displaced persons law and remove its  discriminatory features.  
1950-74	1950	The measures I am recommending to the Congress concerning both our foreign  and our domestic policies represent a carefully considered program to meet  our national needs. It is a program which necessarily requires large  expenditures of funds. More than 70 percent of the Government's  expenditures are required to meet the costs of past wars and to work for  world peace. This is the dominant factor in our fiscal policy. At the same  time, the Government must make substantial expenditures which are necessary  to the growth and expansion of the domestic economy.  
1950-75	1950	At present, largely because of the ill-considered tax reduction of the Both  Congress, the Government is not receiving enough revenue to meet its  necessary expenditures.  
1950-76	1950	To meet this situation, I am proposing that Federal expenditures be held to  the lowest levels consistent with our international requirements and the  essential needs of economic growth, and the well-being of our people. I  think I had better read that over; you interrupted me in the middle.  
1950-77	1950	To meet this situation, I am proposing that Federal expenditures be held to  the lowest levels consistent with our international requirements and the  essential needs of economic growth, and the well-being of our people. Don't  forget that last phrase. At the same time, we must guard against the folly  of attempting budget slashes which would impair our prospects for peace or  cripple the programs essential to our national strength.  
1950-78	1950	The budget recommendations I shall shortly transmit to the Congress show  that we can expect a substantial improvement in our fiscal position over  the next few years, as the cost of some of our extraordinary postwar  programs declines, and as the Government revenue rises as a result of  growth in employment and national income. To further improve our fiscal  outlook, we should make some changes in our tax system which will reduce  present inequities, stimulate business activity, and yield a moderate  amount of additional revenue. I expect to transmit specific recommendations  to the Congress on this subject at a very early date.  
1950-79	1950	The fiscal policy I am recommending is the quickest and safest way of  achieving a balanced budget.  
1950-80	1950	As we move forward into the second half of the 20th century, we must always  bear in mind the central purpose of our national life. We do not seek  material prosperity for ourselves because we love luxury; we do not aid  other nations because we wish to increase our power. We have not devised  programs for the security and well-being of our people because we are  afraid or unwilling to take risks. This is not the meaning of our past  history or our present course.  
1950-81	1950	We work for a better life for all, so that all men may put to good use the  great gifts with which they have been endowed by their Creator. We seek to  establish those material conditions of life in which, without exception,  men may live in dignity, perform useful work, serve their communities, and  worship God as they see fit.  
1950-82	1950	These may seem simple goals, but they are not little ones. They are worth a  great deal more than all the empires and conquests of history. They are not  to be achieved by military aggression or political fanaticism. They are to  be achieved by humbler means-by hard work, by a spirit of self-restraint in  our dealings with one another, and by a deep devotion to the principles of  justice and equality.  
1950-83	1950	It should make us truly thankful, as we look back to the beginnings of this  country, that we have come so far along the road to a better life for all.  It should make us humble to think, as we look ahead, how much farther we  have to go to accomplish, at home and abroad, the objectives that were set  out for us at the founding of this great Nation.  
1950-84	1950	As we approach the halfway mark of the 20th century, we should ask for  continued strength and guidance from that Almighty Power who has placed  before us such great opportunities for the good of mankind in the years to  come.  
1951-1	1951	Mr. President, Mr. Speaker, Members of the Congress:  
1951-2	1951	This 82d Congress faces as grave a task as any Congress in the history of  our Republic. The actions you take will be watched by the whole world.  These actions will measure the ability of a free people, acting through  their chosen representatives and their free institutions, to meet a deadly  challenge to their way of life.  
1951-3	1951	We can meet this challenge foolishly or wisely. We can meet it timidly or  bravely, shamefully or honorably.  
1951-4	1951	I know that the 82d Congress will meet this challenge in a way worthy of  our great heritage. I know that your debates will be earnest, responsible,  constructive, and to the point. I know that from these debates there will  come the great decisions needed to carry us forward.  
1951-5	1951	At this critical time, I am glad to say that our country is in a healthy  condition. Our democratic institutions are sound and strong. We have more  men and women at work than ever before. We are able to produce more than  ever before--in fact, far more than any country ever produced in the  history of the world.  
1951-6	1951	I am confident that we can succeed in the great task that lies before us.  
1951-7	1951	We will succeed, but we must all do our part. We must all act together as  citizens of this great Republic.  
1951-8	1951	As we meet here today, American soldiers are fighting a bitter campaign in  Korea. We pay tribute to their courage, devotion, and gallantry.  
1951-9	1951	Our men are fighting, alongside their United Nations allies, because they  know, as we do, that the aggression in Korea is part of the attempt of the  Russian Communist dictatorship to take over the world, step by step.  
1951-10	1951	Our men are fighting a long way from home, but they are fighting for our  lives and our liberties. They are fighting to protect our right to meet  here today--our right to govern ourselves as a free nation.  
1951-11	1951	The threat of world conquest by Soviet Russia endangers our liberty and  endangers the kind of world in which the free spirit of man can survive.  This threat is aimed at all peoples who strive to win or defend their own  freedom and national independence.  
1951-12	1951	Indeed, the state of our Nation is in great part the state of our friends  and allies throughout the world. The gun that points at them points at us,  also. The threat is a total threat and the danger is a common danger.  
1951-13	1951	All free nations are exposed and all are in peril. Their only security lies  in banding together. No one nation can find protection in a selfish search  for a safe haven from the storm.  
1951-14	1951	The free nations do not have any aggressive purpose. We want only peace in  the world--peace for all countries. No threat to the security of any nation  is concealed in our plans and programs.  
1951-15	1951	We had hoped that the Soviet Union, with its security assured by the  Charter of the United Nations, would be willing to live and let live. But I  am sorry to say that has not been the case.  
1951-16	1951	The imperialism of the czars has been replaced by the even more ambitious,  more crafty, and more menacing imperialism of the rulers of the Soviet  Union.  
1951-17	1951	This new imperialism has powerful military forces. It is keeping millions  of men under arms. It has a large air force and a strong submarine force.  It has complete control of the men and equipment of its satellites. It has  kept its subject peoples and its economy in a state of perpetual  mobilization.  
1951-18	1951	The present rulers of the Soviet Union have shown that they are willing to  use this power to destroy the free nations and win domination over the  whole world.  
1951-19	1951	The Soviet imperialists have two ways of going about their destructive  work. They use the method of subversion and internal revolution, and they  use the method of external aggression. In preparation for either of these  methods of attack, they stir up class strife and disorder. They encourage  sabotage. They put out poisonous propaganda. They deliberately try to  prevent economic improvement.  
1951-20	1951	If their efforts are successful, they foment a revolution, as they did in  Czechoslovakia and China, and as they tried, unsuccessfully, to do in  Greece. If their methods of subversion are blocked, and if they think they  can get away with outright warfare, they resort to external aggression.  This is what they did when they loosed the armies of their puppet states  against the Republic of Korea, in an evil war by proxy.  
1951-21	1951	We of the free world must be ready to meet both of these methods of Soviet  action. We must not neglect one or the other.  
1951-22	1951	The free world has power and resources to meet these two forms of  aggression--resources that are far greater than those of the Soviet  dictatorship. We have skilled and vigorous peoples, great industrial  strength, and abundant sources of raw materials. And above all, we cherish  liberty. Our common ideals are a great part of our strength. These ideals  are the driving force of human progress.  
1951-23	1951	The free nations believe in the dignity and the worth of man.  
1951-24	1951	We believe in independence for all nations.  
1951-25	1951	We believe that free and independent nations can band together into a world  order based on law. We have laid the cornerstone of such a peaceful world  in the United Nations.  
1951-26	1951	We believe that such a world order can and should spread the benefits of  modern science and industry, better health and education, more food and  rising standards of living--throughout the world.  
1951-27	1951	These ideals give our cause a power and vitality that Russian communism can  never command.  
1951-28	1951	The free nations, however, are bound together by more than ideals. They are  a real community bound together also by the ties of self-interest and  self-preservation. If they should fall apart, the results would be fatal to  human freedom.  
1951-29	1951	Our own national security is deeply involved with that of the other free  nations. While they need our support, we equally need theirs. Our national  safety would be gravely prejudiced if the Soviet Union were to succeed in  harnessing to its war machine the resources and the manpower of the free  nations on the borders of its empire.  
1951-30	1951	If Western Europe were to fall to Soviet Russia, it would double the Soviet  supply of coal and triple the Soviet supply of steel. If the free countries  of Asia and Africa should fall to Soviet Russia, we would lose the sources  of many of our most vital raw materials, including uranium, which is the  basis of our atomic power. And Soviet command of the manpower of the free  nations of Europe and Asia would confront us with military forces which we  could never hope to equal.  
1951-31	1951	In such a situation, the Soviet Union could impose its demands on the  world, without resort to conflict, simply through the preponderance of its  economic and military power. The Soviet Union does not have to attack the  United States to secure domination of the world. It can achieve its ends by  isolating us and swallowing up all our allies. Therefore, even if we were  craven enough I do not believe we could be--but, I say, even if we were  craven enough to abandon our ideals, it would be disastrous for us to  withdraw from the community of free nations.  
1951-32	1951	We are the most powerful single member of this community, and we have a  special responsibility. We must take the leadership in meeting the  challenge to freedom and in helping to protect the rights of independent  nations.  
1951-33	1951	This country has a practical, realistic program of action for meeting this  challenge.  
1951-34	1951	First, we shall have to extend economic assistance, where it can be  effective. The best way to stop subversion by the Kremlin is to strike at  the roots of social injustice and economic disorder. People who have jobs,  homes, and hopes for the future will defend themselves against the  underground agents of the Kremlin. Our programs of economic aid have done  much to turn back Communism,  
1951-35	1951	In Europe the Marshall plan has had an electrifying result. As European  recovery progressed, the strikes led by the Kremlin's agents in Italy and  France failed. All over Western Europe the Communist Party took worse and  worse beatings at the polls.  
1951-36	1951	The countries which have received Marshall plan aid have been able, through  hard work, to expand their productive strength-in many cases, to levels  higher than ever before in their history. Without this strength they would  be completely incapable of defending themselves today. They are now ready  to use this strength in helping to build a strong combined defense against  aggression.  
1951-37	1951	We shall need to continue some economic aid to European countries. This aid  should now be specifically related to the building of their defenses.  
1951-38	1951	In other parts of the world our economic assistance will need to be more  broadly directed toward economic development. In the Near East, in Africa,  in Asia, we must do what we can to help people who are striving to advance  from misery, poverty, and hunger. We must also continue to help the  economic growth of our good neighbors in this hemisphere. These actions  will bring greater strength for the free world. They will give many people  a real stake in the future and reason to defend their freedom. They will  mean increased production of goods they need and materials we need.  
1951-39	1951	Second, we shall need to continue our military assistance to countries  which want to defend themselves.  
1951-40	1951	The heart of our common defense effort is the North Atlantic community. The  defense of Europe is the basis for the defense of the whole free  world--ourselves included. Next to the United States, Europe is the largest  workshop in the world. It is also a homeland of the great religious beliefs  shared by many of our citizens beliefs which are now threatened by the tide  of atheistic communism.  
1951-41	1951	Strategically, economically, and morally, the defense of Europe is a part  of our own defense. That is why we have joined with the countries of Europe  in the North Atlantic Treaty, pledging ourselves to work with them.  
1951-42	1951	There has been much discussion recently over whether the European countries  are willing to defend themselves. Their actions are answering this  question.  
1951-43	1951	Our North Atlantic Treaty partners have strict systems of universal  military training. Several have recently increased the term of service. All  have taken measures to improve the quality of training. Forces are being  trained and expanded as rapidly as the necessary arms and equipment can be  supplied from their factories and ours. Our North Atlantic Treaty partners,  together, are building armies bigger than our own.  
1951-44	1951	None of the North Atlantic Treaty countries, including our own country, has  done enough yet. But real progress is being made. Together, we have worked  out defense plans. The military leaders of our own country took part in  working out these plans, and are agreed that they are sound and within our  capabilities.  
1951-45	1951	To put these plans into action, we sent to Europe last week one of our  greatest military commanders, General Dwight D. Eisenhower.  
1951-46	1951	General Eisenhower went to Europe to assume command of the united forces of  the North Atlantic Treaty countries, including our own forces in Germany.  
1951-47	1951	The people of Europe have confidence in General Eisenhower. They know his  ability to put together a fighting force of allies. His mission is vital to  our security. We should all stand behind him, and give him every bit of  help we can.  
1951-48	1951	Part of our job will be to reinforce the military strength of our European  partners by sending them weapons and equipment as our military production  expands.  
1951-49	1951	Our program of military assistance extends to the nations in the Near East  and the Far East which are trying to defend their freedom. Soviet communism  is trying to make these nations into colonies, and to use their people as  cannon fodder in new wars of conquest. We want their people to be free men  and to enjoy peace.  
1951-50	1951	Our country has always stood for freedom for the peoples of Asia. Long,  long ago it stood for the freedom of the peoples of Asia. Our history shows  this. We have demonstrated it in the Philippines. We have demonstrated it  in our relations with Indonesia, India, and with China. We hope to join in  restoring the people of Japan to membership in the community of free  nations.  
1951-51	1951	It is in the Far East that we have taken up arms, under the United Nations,  to preserve the principle of independence for free nations. We are fighting  to keep the forces of Communist aggression from making a slave state out of  Korea.  
1951-52	1951	Korea has tremendous significance for the world. It means that free  nations, acting through the United Nations, are fighting together against  aggression.  
1951-53	1951	We will understand the importance of this best if we look back into  history. If the democracies had stood up against the invasion of Manchuria  in 1931, or the attack on Ethiopia in 1935, or the seizure of Austria in  1938, if they had stood together against aggression on those occasions as  the United Nations has done in Korea, the whole history of our time would  have been different.  
1951-54	1951	The principles for which we are fighting in Korea are right and just. They  are the foundations of collective security and of the future of free  nations. Korea is not only a country undergoing the torment of aggression;  it is also a symbol. It stands for right and justice in the world against  oppression and slavery. The free world must always stand for these  principles--and we will stand with the free world.  
1951-55	1951	As the third part of our program, we will continue to work for peaceful  settlements in international disputes. We will support the United Nations  and remain loyal to the great principles of international cooperation laid  down in its charter.  
1951-56	1951	We are willing, as we have always been, to negotiate honorable settlements  with the Soviet Union. But we will not engage in appeasement.  
1951-57	1951	The Soviet rulers have made it clear that we must have strength as well as  right on our side. If we build our strength--and we are building it--the  Soviet rulers may face the facts and lay aside their plans to take over the  world.  
1951-58	1951	That is what we hope will happen, and that is what we are trying to bring  about. That is the only realistic road to peace.  
1951-59	1951	These are the main elements of the course our Nation must follow as a  member of the community of free nations. These are the things we must do to  preserve our security and help create a peaceful world. But they will be  successful only if we increase the strength of our own country.  
1951-60	1951	Here at home we have some very big jobs to do. We are building much  stronger military forces--and we are building them fast. We are preparing  for full wartime mobilization, if that should be necessary. And we are  continuing to build a strong and growing economy, able to maintain whatever  effort may be required for as long as necessary.  
1951-61	1951	We are building our own Army, Navy, and Air Force to an active strength of  nearly 3 1/2 million men and women. We are stepping up the training of the  reserve forces, and establishing more training facilities, so that we can  rapidly increase our active forces far more on short notice.  
1951-62	1951	We are going to produce all the weapons and equipment that such an armed  force will need. Furthermore, we will make weapons for our allies, and  weapons for our own reserve supplies. On top of this, we will build the  capacity to turn out on short notice arms and supplies that may be needed  for a full-scale war.  
1951-63	1951	Fortunately, we have a good start on this because of our enormous plant  capacity and because of the equipment on hand from the last war. For  example, many combat ships are being returned to active duty from the  "mothball fleet" and many others can be put into service on very short  notice. We have large reserves of arms and ammunition and thousands of  workers skilled in arms production.  
1951-64	1951	In many cases, however, our stocks of weapons are low. In other cases,  those on hand are not the most modern. We have made remarkable technical  advances. We have developed new types of jet planes and powerful new tanks.  We are concentrating on producing the newest types of weapons and producing  them as fast as we can.  
1951-65	1951	This production drive is more selective than the one we had during World  War II, but it is just as urgent and intense. It is a big program and it is  a costly one.  
1951-66	1951	Let me give you two concrete examples. Our present program calls for  expanding the aircraft industry so that it will have the capacity to  produce 50,000 modern military planes a year. We are preparing the capacity  to produce 35,000 tanks a year. We are not now ordering that many planes or  that many tanks, and we hope that we never have to, but we mean to be able  to turn them out if we need them.  
1951-67	1951	The planes we are producing now are much bigger, much better, and much more  expensive than the planes we had during the last war.  
1951-68	1951	We used to think that the B-17 was a huge plane, and the blockbuster it  carried a huge load. But the B-36 can carry five of these blockbusters in  its belly, and it can carry them five times as far. Of course, the B-36 is  much more complicated to build than the B-17, and far more expensive. One  B-17 costs $275,000, while now one B-36 costs $3 1/2 million.  
1951-69	1951	I ask you to remember that what we are doing is to provide the best and  most modern military equipment in the world for our fighting forces.  
1951-70	1951	This kind of defense production program has two parts.  
1951-71	1951	The first part is to get our defense production going as fast as possible.  We have to convert plants and channel materials to defense production. This  means heavy cuts in civilian uses of copper, aluminum, rubber, and other  essential materials. It means shortages in various consumer goods.  
1951-72	1951	The second part is to increase our capacity to produce and to keep our  economy strong for the long pull. We do not know how long Communist  aggression will threaten the world.  
1951-73	1951	Only by increasing our output can we carry the burden of preparedness for  an indefinite period in the future. This means that we will have to build  more power plants and more steel mills, grow more cotton, mine more copper,  and expand our capacity in many other ways.  
1951-74	1951	The Congress will need to consider legislation, at this session, affecting  all the aspects of our mobilization job. The main subjects on which  legislation will be needed are:  
1951-75	1951	First, appropriations for our military buildup.  
1951-76	1951	Second, extension and revision of the Selective Service Act.  
1951-77	1951	Third, military and economic aid to help build up the strength of the free  world.  
1951-78	1951	Fourth, revision and extension of the authority to expand production and to  stabilize prices, wages, and rents.  
1951-79	1951	Fifth, improvement of our agricultural laws to help obtain the kinds of  farm products we need for the defense effort.  
1951-80	1951	Sixth, improvement of our labor laws to help provide stable  labor-management relations and to make sure that we have steady production  in this emergency.  
1951-81	1951	Seventh, housing and training of defense workers and the full use of all  our manpower resources.  
1951-82	1951	Eighth, means for increasing the supply of doctors, nurses, and other  trained medical personnel critically needed for the defense effort.  
1951-83	1951	Ninth, aid to the States to meet the most urgent needs of our elementary  and secondary schools. Some of our plans will have to be deferred for the  time being. But we should do all we can to make sure our children are being  trained as good and useful citizens in the critical times ahead.  
1951-84	1951	Tenth, a major increase in taxes to meet the cost of the defense effort.  
1951-85	1951	The Economic Report and the Budget Message will discuss these subjects  further. In addition, I shall send to the Congress special messages  containing detailed recommendations on legislation needed at this Session.  
1951-86	1951	In the months ahead the Government must give priority to activities that  are urgent--like military procurement and atomic energy and power  development. It must practice rigid economy in its nondefense activities.  Many of the things we would normally do must be curtailed or postponed.  
1951-87	1951	But in a long-term defense effort like this one, we cannot neglect the  measures needed to maintain a strong economy and a healthy democratic  society.  
1951-88	1951	The Congress, therefore, should give continued attention to the measures  which our country will need for the long pull. And it should act upon such  legislation as promptly as circumstances permit.  
1951-89	1951	To take just one example--we need to continue and complete the work of  rounding out our system of social insurance. We still need to improve our  protection against unemployment and old age. We still need to provide  insurance against the loss of earnings through sickness, and against the  high costs of modern medical care.  
1951-90	1951	And above all, we must remember that the fundamentals of our strength rest  upon the freedoms of our people. We must continue our efforts to achieve  the full realization of our democratic ideals. We must uphold the freedom  of speech and the freedom of conscience in our land. We must assure equal  rights and equal opportunities to all our citizens.  
1951-91	1951	As we go forward this year in the defense of freedom, let us keep dearly  before us the nature of our present effort.  
1951-92	1951	We are building up our strength, in concert with other free nations, to  meet the danger of aggression that has been turned loose on the world. The  strength of the free nations is the world's best hope of peace.  
1951-93	1951	I ask the Congress for unity in these crucial days.  
1951-94	1951	Make no mistake about my meaning. I do not ask, or expect, unanimity. I do  not ask for an end to debate. Only by debate can we arrive at decisions  which are wise, and which reflect the desires of the American people. We do  not have a dictatorship in this country, and we never will have one in this  country.  
1951-95	1951	When I request unity, what I am really asking for is a sense of  responsibility on the part of every Member of this Congress. Let us debate  the issues, but let every man among us weigh his words and his deeds. There  is a sharp difference between harmful criticism and constructive criticism.  If we are truly responsible as individuals, I am sure that we will be  unified as a government.  
1951-96	1951	Let us keep our eyes on the issues and work for the things we all believe  in.  
1951-97	1951	Let each of us put our country ahead of our party, and ahead of our own  personal interests.  
1951-98	1951	I had the honor to be a Member of the Senate during World War II, and I  know from experience that unity of purpose and of effort is possible in the  Congress without any lessening of the vitality of our two-party system.  
1951-99	1951	Let us all stand together as Americans. Let us stand together with all men  everywhere who believe in human liberty.  
1951-100	1951	Peace is precious to us. It is the way of life we strive for with all the  strength and wisdom we possess. But more precious than peace are freedom  and justice. We will fight, if fight we must, to keep our freedom and to  prevent justice from being destroyed.  
1951-101	1951	These are the things that give meaning to our lives, and which we  acknowledge to be greater than ourselves.  
1951-102	1951	This is our cause--peace, freedom, justice. We will pursue this cause with  determination and humility, asking divine guidance that in all we do we may  follow the will of God.  
1952-1	1952	Mr. President, Mr. Speaker, Members of the Congress:  
1952-2	1952	I have the honor to report to the Congress on the state of the Union.  
1952-3	1952	At the outset, I should like to speak of the necessity for putting first  things first as we work together this year for the good of our country.  
1952-4	1952	The United States and the whole free world are passing through a period of  grave danger. Every action you take here in Congress, and every action that  I take as President, must be measured against the test of whether it helps  to meet that danger.  
1952-5	1952	This will be a presidential election year-the year in which politics plays  a large part in our lives--a larger part than usual. That is perfectly  proper. But we have a greater responsibility to conduct our political  fights in a manner that does not harm the national interest.  
1952-6	1952	We can find plenty of things to differ about without destroying our free  institutions and without abandoning our bipartisan foreign policy for  peace.  
1952-7	1952	When everything is said and done, all of us--Republicans and Democrats  alike--all of us are Americans; and we are all going to sink or swim  together.  
1952-8	1952	We are moving through a perilous time. Faced with a terrible threat of  aggression, our Nation has embarked upon a great effort to help establish  the kind of world in which peace shall be secure. Peace is our goal-not  peace at any price, but a peace based on freedom and justice. We are now in  the midst of our effort to reach that goal. On the whole, we have been  doing very well.  
1952-9	1952	Last year, 1951, was a year in which we threw back aggression, added  greatly to our military strength, and improved the chances for peace and  freedom in many parts of the world.  
1952-10	1952	This year, 1952, is a critical year in the defense effort of the whole free  world. If we falter we can lose all the gains we have made. If we drive  ahead, with courage and vigor and determination, we can by the end of 1952  be in a position of much greater security. The way will be dangerous for  the years ahead, but if we put forth our best efforts this year--and next  year--we can be "over the hump" in our effort to build strong defenses.  
1952-11	1952	When we look at the record of the past year, 1951, we find important things  on both the credit and the debit side of the ledger. We have made great  advances. At the same time we have run into new problems which must be  overcome.  
1952-12	1952	Now let us look at the credit side first.  
1952-13	1952	Peace depends upon the free nations sticking together, and making a  combined effort to check aggression and prevent war. In this respect, 1951  was a year of great achievement.  
1952-14	1952	In Korea the forces of the United Nations turned hack the Chinese Communist  invasion-and did it without widening the area of conflict. The action of  the United Nations in Korea has been a powerful deterrent to a third world  war. However, the situation in Korea remains very hazardous. The outcome of  the armistice negotiation still remains uncertain.  
1952-15	1952	In Indochina and Malaya, our aid has helped our allies to hold back the  Communist advance, although there are signs of further trouble in that  area.  
1952-16	1952	In 1951 we strengthened the chances of peace in the Pacific region by the  treaties with Japan and the defense arrangements with Australia, New  Zealand, and the Philippines.  
1952-17	1952	In Europe combined defense has become a reality. The free nations have  created a real fighting force. This force is not yet as strong as it needs  to be; but it is already a real obstacle to any attempt by hostile forces  to sweep across Europe to the Atlantic.  
1952-18	1952	In 1951 we also moved to strengthen the security of Europe by the agreement  to bring Greece and Turkey into the North Atlantic Treaty.  
1952-19	1952	The United Nations, the world's greatest hope for peace, has come through a  year of trial stronger and more useful than ever. The free nations have  stood together in blocking Communist attempts to tear up the charter.  
1952-20	1952	At the present session of the United Nations in Paris, we, together with  the British and the French, offered a plan to reduce and control all  armaments under a foolproof inspection system. This is a concrete,  practical proposal for disarmament.  
1952-21	1952	But what happened? Vishinsky laughed at it. Listen to what he said: "I  could hardly sleep at all last night .... I could not sleep because I kept  laughing." The world will be a long time forgetting the spectacle of that  fellow laughing at disarmament.  
1952-22	1952	Disarmament is not a joke. Vishinsky's laughter met with shock and anger  from the people all over the world. And, as a result, Mr. Stalin's  representative received orders to stop laughing and start talking.  
1952-23	1952	If the Soviet leaders were to accept this proposal, it would lighten the  burden of armaments, and permit the resources of the earth to be devoted to  the good of mankind. But until the Soviet Union accepts a sound disarmament  proposal, and joins in peaceful settlements, we have no choice except to  build up our defenses.  
1952-24	1952	During this past year we added more than a million men and women to our  Armed Forces. The total is now nearly 3 1/2 million. We have made rapid  progress in the field of atomic weapons. We have turned out billion worth  of military supplies and equipment, three times as much as the year  before.  
1952-25	1952	Economic conditions in the country are good. There are 61 million people on  the job; wages, farm incomes, and business profits are at high levels.  Total production of goods and services in our country has increased 8  percent over last year--about twice the normal rate of growth.  
1952-26	1952	Perhaps the most amazing thing about our economic progress is the way we  are increasing our basic capacity to produce. For example, we are now in  the second year of a 3-year program which will double our output of  aluminum, increase our electric power supply by 40 percent, and increase  our steelmaking capacity by 15 percent. We can then produce 120 million  tons of steel a year, as much as all the rest of the world put together.  
1952-27	1952	This expansion will mean more jobs and higher standards of living for all  of us in the years ahead. At the present time it means greater strength for  us and for the rest of the free world in the fight for peace.  
1952-28	1952	Now, I must turn to the debit side of the ledger for the past year.  
1952-29	1952	The outstanding fact to note on the debit side of the ledger is that the  Soviet Union, in 1951, continued to expand its military production and  increase its already excessive military power.  
1952-30	1952	It is true that the Soviets have run into increasing difficulties. Their  hostile policies have awakened stern resistance among free men throughout  the world. And behind the Iron Curtain the Soviet rule of force has created  growing political and economic stresses in the satellite nations.  
1952-31	1952	Nevertheless, the grim fact remains that the Soviet Union is increasing its  armed might. It is still producing more war planes than the free nations.  It has set off two more atomic explosions. The world still walks in the  shadow of another world war.  
1952-32	1952	And here at home, our defense preparations are far from complete.  
1952-33	1952	During 1951 we did not make adequate progress in building up civil defense  against atomic attack. This is a major weakness in our plans for peace,  since inadequate civilian defense is an open invitation to a surprise  attack. Failure to provide adequate civilian defense has the same effect as  adding to the enemy's supply of atomic bombs.  
1952-34	1952	In the field of defense production we have run into difficulties and delays  in designing and producing the latest types of airplanes and tanks. Some  machine tools and metals are still in extremely short supply.  
1952-35	1952	In other free countries the defense buildup has created severe economic  problems. It has increased inflation in Europe and has endangered the  continued recovery of our allies.  
1952-36	1952	In the Middle East political tensions and the oil controversy in Iran are  keeping the region in a turmoil. In the Far East the dark threat of  Communist imperialism still hangs over many nations.  
1952-37	1952	This, very briefly, is the good side and the bad side of the picture.  
1952-38	1952	Taking the good and bad together, we have made real progress this last year  along the road to peace. We have increased the power and unity of the free  world. And while we were doing this, we have avoided world war on the one  hand, and appeasement on the other. This is a hard road to follow, but the  events of the last year show that it is the right road to peace.  
1952-39	1952	We cannot expect to complete the job overnight. The free nations may have  to maintain for years the larger military forces needed to deter  aggression. We must build steadily, over a period of years, toward  political solidarity and economic progress among the free nations in all  parts of the world.  
1952-40	1952	Our task will not be easy; but if we go at it with a will, we can look  forward to steady progress. On our side are all the great resources of  freedom--the ideals of religion and democracy, the aspiration of people for  a better life, and the industrial and technical power of a free  civilization.  
1952-41	1952	These advantages outweigh anything the slave world can produce. The only  thing that can defeat us is our own state of mind. We can lose if we  falter.  
1952-42	1952	The middle period of a great national effort like this is a very difficult  time. The way seems long and hard. The goal seems far distant. Some people  get discouraged. That is only natural.  
1952-43	1952	But if there are any among us who think we ought to ease up in the fight  for peace, I want to remind them of three things--just three things.  
1952-44	1952	First: The threat of world war is still very real. We had one Pearl  Harbor--let's not get caught off guard again. If you don't think the threat  of Communist armies is real, talk to some of our men back from Korea.  
1952-45	1952	Second: If the United States had to try to stand alone against a  Soviet-dominated world, it would destroy the life we know and the ideals we  hold dear. Our allies are essential to us, just as we are essential to  them. The more shoulders there are to bear the burden the lighter that  burden will be.  
1952-46	1952	Third: The things we believe in most deeply are under relentless attack. We  have the great responsibility of saving the basic moral and spiritual  values of our civilization. We have started out well--with a program for  peace that is unparalleled in history. If we believe in ourselves and the  faith we profess, we will stick to that job until it is victoriously  finished.  
1952-47	1952	This is a time for courage, not for grumbling and mumbling.  
1952-48	1952	Now, let us take a look at the things we have to do.  
1952-49	1952	The thing that is uppermost in the minds of all of us is the situation in  Korea. We must, and we will, keep up the fight there until we get the kind  of armistice that will put an end to the aggression and protect the safety  of our forces and the security of the Republic of Korea. Beyond that we  shall continue to work for a settlement in Korea that upholds the  principles of the United Nations.  
1952-50	1952	We went into Korea because we knew that Communist aggression had to be met  firmly if freedom was to be preserved in the world. We went into the fight  to save the Republic of Korea, a free country, established under the United  Nations. These are our aims. We will not give up until we attain them.  
1952-51	1952	Meanwhile, we must continue to strengthen the forces of freedom throughout  the world.  
1952-52	1952	I hope the Senate will take early and favorable action on the Japanese  peace treaty, on our security pacts with the Pacific countries, and on the  agreement to bring Greece and Turkey into the North Atlantic Treaty.  
1952-53	1952	We are also negotiating an agreement with the German Federal Republic under  which it can play an honorable and equal part among nations and take its  place in the defense of Western Europe.  
1952-54	1952	But treaties and plans are only the skeleton of our defense structure. The  sinew and muscle of defense are the forces and equipment which must be  provided.  
1952-55	1952	In Europe we must go on helping our friends and allies to build up their  military forces. This means we must send weapons in large volume to our  European allies. I have directed that weapons for Europe be given a very  high priority. Economic aid is necessary, too, to supply the margin of  difference between success and failure in making Europe a strong partner in  our joint defense.  
1952-56	1952	In the long run we want to see Europe freed from any dependence on our aid.  Our European allies want that just as bad as we do. The steps that are now  being taken to build European unity should help bring that about. Six  European countries are pooling their coal and steel production under the  Schuman plan. Work is going forward on the merger of European national  forces on the Continent into a single army. These great projects should  become realities in 1952.  
1952-57	1952	We should do all we can to help and encourage the move toward a strong and  united Europe.  
1952-58	1952	In Asia the new Communist empire is a daily threat to millions of people.  The peoples of Asia want to be free to follow their own way of life. They  want to preserve their culture and their traditions against communism, just  as much as we want to preserve ours. They are laboring under terrific  handicaps--poverty, ill health, feudal systems of land ownership, and the  threat of internal subversion or external attack. We can and we must  increase our help to them.  
1952-59	1952	This means military aid, especially to those places like Indochina which  might be hardest hit by some new Communist attack.  
1952-60	1952	It also means economic aid, both technical know-how and capital  investment.  
1952-61	1952	This last year we made available millions of bushels of wheat to relieve  famine in India. But far more important, in the long run, is the work  Americans are doing in India to help the Indian farmers themselves raise  more grain. With the help of our technicians, Indian farmers, using simple,  inexpensive means, have been able since 1948 to double the crops in one  area in India. One farmer there raised 63 bushels of wheat to the acre,  where 13 bushels had been the average before.  
1952-62	1952	This is point 4--our point 4 program at work. It is working--not only in  India but in Iran, Paraguay, Liberia--in 33 countries around the globe. Our  technical missionaries are out there. We need more of them. We need more  funds to speed their efforts, because there is nothing of greater  importance in all our foreign policy. There is nothing that shows more  clearly what we stand for, and what we want to achieve.  
1952-63	1952	My friends of the Congress, less than one-third of the expenditure for the  cost of World War II would have created the developments necessary to feed  the whole world so we wouldn't have to stomach communism. That is what we  have got to fight, and unless we fight that battle and win it, we can't win  the cold war or a hot one either.  
1952-64	1952	We have recently lost a great public servant who was leading this effort to  bring opportunity and hope to the people of half the world. Dr. Henry  Bennett and his associates died in line of duty on a point 4 mission. It is  up to us to carry on the great work for which they gave their lives.  
1952-65	1952	During the coming year we must not forget the suffering of the people who  live behind the Iron Curtain. In those areas minorities are being  oppressed, human rights violated, religions persecuted. We should continue  to expose those wrongs. We should continue and expand the activities of the  Voice of America, which brings our message of hope and truth to those  peoples and other peoples throughout the world.  
1952-66	1952	I have just had an opportunity to discuss many of these world problems with  Prime Minister Churchill. We have had a most satisfactory series of  meetings. We thoroughly reviewed the situation in Europe, the Middle East,  and the Far East. We both look forward to steady progress toward peace  through the cooperative action and teamwork of the free nations.  
1952-67	1952	Turning from our foreign policies, let us consider the jobs we have here at  home as a part of our program for peace.  
1952-68	1952	The first of these jobs is to move ahead full steam on the defense  program.  
1952-69	1952	Our objective is to have a well-equipped active defense force large  enough--in concert with the forces of our allies--to deter aggression and  to inflict punishing losses on the enemy immediately if we should be  attacked. This active force must be backed by adequate reserves, and by the  plants and tools to turn out the tremendous quantities of new weapons that  would be needed if war came. We are not building an active force adequate  to carry on full scale war, but we are putting ourselves in a position to  mobilize very rapidly if we have to.  
1952-70	1952	This year I shall recommend some increases in the size of the active force  we are building, with particular emphasis on air power. This means we shall  have to continue large-scale production of planes and other equipment for a  longer period of time than we had originally planned.  
1952-71	1952	Planes and tanks and other weapons-what the military call "hard goods"--are  now beginning to come off the production lines in volume. Deliveries of  hard goods now amount to about a billion and a half dollars worth a month.  A year from now, we expect that rate to be doubled.  
1952-72	1952	We shall have to hold to a high rate of military output for about a year  after that. In 1954 we hope to have enough equipment so that we can reduce  the production of most military items substantially. The next 2 years  should therefore be the peak period of defense production.  
1952-73	1952	Defense needs will take a lot of steel, aluminum, copper, nickel, and other  scarce materials. This means smaller production of some civilian goods. The  cutbacks will be nothing like those during World War II, when most civilian  production was completely stopped. But there will be considerably less of  some goods than we have been used to these past 2 or 3 years.  
1952-74	1952	The very critical part of our defense job this year is to keep down  inflation.  
1952-75	1952	We can control inflation if we make up our minds to do it.  
1952-76	1952	On the executive side of the Government, we intend to hold the line on  prices just as tightly as the law allows. We will permit only those wage  increases which are clearly justified under sound stabilization policies;  and we will see to it that industries absorb cost increases out of earnings  wherever feasible, before they are authorized to raise prices. We will do  that, at any rate, except where the recent amendments to the law  specifically require us to give further price increases.  
1952-77	1952	Congress has a tremendous responsibility in this matter. Our stabilization  law was shot full of holes at the last session. This year, it will be one  of the main tasks before the Congress to repair the damage and enact a  strong anti-inflation law.  
1952-78	1952	As a part of our program to keep our country strong, we are determined to  preserve the financial strength of the Government. This means high taxes  over the next few years. We must see to it that these taxes are shared  among the people as fairly as possible. I expect to discuss these matters  in the Economic Report and the Budget Message which will soon be presented  to the Congress.  
1952-79	1952	Our tax laws must be fair. And we must make absolutely certain they are  administered fairly, without fear or favor of any kind for anybody. To this  end, steps have already been taken to remedy weaknesses which have been  disclosed in the administration of the tax laws. In addition, I hope the  Congress will approve my reorganization plan for the Bureau of Internal  Revenue. We must do everything necessary in order to make just as certain  as is humanly possible that every taxpayer receives equal treatment under  the law.  
1952-80	1952	To carry the burden of defense we must have a strong, productive, and  expanding economy here at home. We cannot neglect those things that have  made us the great and powerful nation we are today.  
1952-81	1952	Our strength depends upon the health, the morale, the freedom of our  people. We can take on the burden of leadership in the fight for world  peace because, for nearly 20 years, the Government and the people have been  working together for the general welfare. We have given more and more of  out citizens a fair chance at decent, useful, productive lives. That is the  reason we are as strong as we are today.  
1952-82	1952	This Government of ours--the Congress and the executive both--must keep on  working to bring about a fair deal for all the American people. Some people  will say that we haven't the time or the money this year for measures for  the welfare of the people. But if we want to win the fight for peace, this  is a part of the job we cannot ignore.  
1952-83	1952	We will have to give up some things, we will have to go forward on others  at a slower pace. But, so far as I am concerned, I do not think we can give  up the things that are vital to our national strength.  
1952-84	1952	I believe most people in this country will agree with me on that.  
1952-85	1952	I think most farmers understand that soil conservation and rural  electrification and agricultural research are not frills or luxuries, but  real necessities in order to boost our farm production.  
1952-86	1952	I think most workers understand that decent housing and good working  conditions are not luxuries, but necessities if the working men and women  of this country are to continue to out-produce the rest of the world.  
1952-87	1952	I think our businessmen know that scientific research and transportation  services and more steel mills and power projects are not luxuries, but  necessities to keep our business and our industry in the forefront of  industrial progress.  
1952-88	1952	I think everybody knows that social insurance and better schools and health  services are not frills, but necessities in helping all Americans to be  useful and productive citizens, who can contribute their full share in the  national effort to protect and advance our way of life.  
1952-89	1952	We cannot do all we want to in times like these--we have to choose the  things that will contribute most to defense--but we must continue to make  progress if we are to be a strong nation in the years ahead.  
1952-90	1952	Let me give you some examples.  
1952-91	1952	We are going right ahead with the urgently needed work to develop our  natural resources, to conserve our soil, and to prevent floods. We are  going to produce essential power and build the lines that are necessary and  that we have to have to transmit it to our farms and factories. We are  going to encourage exploration for new mineral deposits.  
1952-92	1952	We are going to keep on building essential highways and taking any other  steps that will assure the Nation an adequate transportation system--on  land, on the sea, and in the air.  
1952-93	1952	We must move right ahead this year to see that defense workers and  soldiers' families get decent housing at rents they can afford to pay.  
1952-94	1952	We must begin our long deferred program of Federal aid to education--to  help the States meet the present crisis in the operation of our schools.  And we must help with the construction of schools in areas where they are  critically needed because of the defense effort.  
1952-95	1952	We urgently need to train more doctors and other health personnel, through  aid to medical education. We also urgently need to expand the basic public  health services in our home communities--especially in defense areas. The  Congress should go ahead with these two measures immediately.  
1952-96	1952	I have set up an impartial commission to make a thorough study of the  Nation's health needs. One of the things this commission is looking into is  how to bring the cost of modern medical care within the reach of all the  people. I have repeatedly recommended national health insurance as the best  way to do this. So far as I know, it is still the best way. If there are  any better answers, I hope this commission will find them. But of one thing  I am sure: something must be done, and done soon.  
1952-97	1952	This year we ought to make a number of urgently needed improvements in our  social security law. For one thing, benefits under old-age and survivors  insurance should be raised $5 a month above the present average of $42. For  another thing, the States should be given special aid to help them increase  public assistance payments. By doing these things now, we can ease the  pressure of living costs for people who depend on those fixed payments.  
1952-98	1952	We should also make some cost-of-living adjustments for those receiving  veterans' compensation for death or disability incurred in the service of  our country. In addition, now is the time to start a sensible program of  readjustment benefits for our veterans who have seen service since the  fighting broke out in Korea.  
1952-99	1952	Another thing the Congress should do at this session is to strengthen our  system of farm price supports to meet the defense emergency. The "sliding  scale" in the price support law should not be allowed to penalize farmers  for increasing production to meet defense needs. We should also find a new  and less costly method for supporting perishable commodities than the law  now provides.  
1952-100	1952	We need to act promptly to improve our labor law. The Taft-Hartley Act has  many serious and far-reaching defects. Experience has demonstrated this so  clearly that even the sponsors of the act now admit that it needs to be  changed. A fair law, fair to both management and labor, is indispensable to  sound labor relations and to full, uninterrupted production. I intend to  keep on working for a fair law until we get one.  
1952-101	1952	As we build our strength to defend the freedom in the world, we ourselves  must extend the benefits of freedom more widely among all our own people.  We need to take action toward the wider enjoyment of civil rights. Freedom  is the birthright of every American.  
1952-102	1952	The executive branch has been making real progress toward full equality of  treatment and opportunity--in the Armed Forces, in the civil service, and  in private firms working for the Government. Further advances require  action by Congress, and I hope that means will be provided to give the  Members of the Senate and the House a chance to vote on them.  
1952-103	1952	I am glad to hear that home rule for the District of Columbia will be the  first item of business before the Senate. I hope that it, as well as  statehood for Hawaii and Alaska, will be adopted promptly.  
1952-104	1952	All these measures I have been talking about--measures to advance the  well-being of our people--demonstrate to the world the forward movement of  our free society.  
1952-105	1952	This demonstration of the way free men govern themselves has a more  powerful influence on the people of the world--on both sides of the Iron  Curtain--than all the trick slogans and pie-in-the-sky promises of the  Communists.  
1952-106	1952	But our shortcomings, as well as our progress, are watched from abroad. And  there is one shortcoming I want to speak about plainly.  
1952-107	1952	Our kind of government above all others cannot tolerate dishonesty among  public servants.  
1952-108	1952	Some dishonest people worm themselves into almost every human organization.  It is all the more shocking, however, when they make their way into a  Government such as ours, which is based on the principle of justice for  all. Such unworthy public servants must be weeded out. I intend to see to  it that Federal employees who have been guilty of misconduct are punished  for it. I also intend to see to it that the honest and hard-working great  majority of our Federal employees are protected against partisan slander  and malicious attack.  
1952-109	1952	I have already made some recommendations to the Congress to help accomplish  these purposes. I intend to submit further recommendations to this end. I  will welcome the wholehearted cooperation of the Congress in this effort.  
1952-110	1952	I also think that the Congress can do a great deal to strengthen confidence  in our institutions by applying rigorous standards of moral integrity to  its own operations, and by finding an effective way to control campaign  expenditures, and by protecting the rights of individuals in congressional  investigations.  
1952-111	1952	To meet the crisis which now hangs over the world, we need many different  kinds of strength--military, economic, political, and moral. And of all  these, I am convinced that moral strength is the most vital.  
1952-112	1952	When you come right down to it, it is the courage and the character of our  Nation--and of each one of us as individuals-that will really decide how  well we meet this challenge.  
1952-113	1952	We are engaged in a great undertaking at home and abroad--the greatest, in  fact, that any nation has ever been privileged to embark upon. We are  working night and day to bring peace to the world and to spread the  democratic ideals of justice and self-government to all people. Our  accomplishments are already remarkable. We ought to be full of pride in  what we are doing, and full of confidence and hope in the outcome. No  nation ever had greater resources, or greater energy, or nobler traditions  to inspire it.  
1952-114	1952	And yet, day in and day out, we see a long procession of timid and fearful  men who wring their hands and cry out that we have lost the way, that we  don't know what we are doing, that we are bound to fail. Some say we should  give up the struggle for peace, and others say we should have a war and get  it over with. That's a terrible statement. I had heard it made, but they  want us to forget the great objective of preventing another world war--the  objective for which our soldiers have been fighting in the hills of Korea.  
1952-115	1952	If we are to be worthy of all that has been done for us by our soldiers in  the field, we must be true to the ideals for which they are fighting. We  must reject the counsels of defeat and despair. We must have the  determination to complete the great work for which our men have laid down  their lives.  
1952-116	1952	In all we do, we should remember who we are and what we stand for. We are  Americans. Our forefathers had far greater obstacles than we have, and much  poorer chances of success. They did not lose heart, or turn aside from  their goals. In the darkest of all winters in American history, at Valley  Forge, George Washington said: "We must not, in so great a contest, expect  to meet with nothing but sunshine." With that spirit they won their fight  for freedom.  
1952-117	1952	We must have that same faith and vision. In the great contest in which we  are engaged today, we cannot expect to have fair weather all the way. But  it is a contest just as important for this country and for all men, as the  desperate struggle that George Washington fought through to victory.  
1952-118	1952	Let us prove, again, that we are not merely sunshine patriots and summer  soldiers. Let us go forward, trusting in the God of Peace, to win the goals  we seek.  
1953-1	1953	Mr. President, Mr. Speaker, Members of the Eighty-third Congress:  
1953-2	1953	I welcome the honor of appearing before you to deliver my first message to  the Congress.  
1953-3	1953	It is manifestly the joint purpose of the congressional leadership and of  this administration to justify the summons to governmental responsibility  issued last November by the American people. The grand labors of this  leadership will involve:  
1953-4	1953	Application of America's influence in world affairs with such fortitude and  such foresight that it will deter aggression and eventually secure peace;  
1953-5	1953	Establishment of a national administration of such integrity and such  efficiency that its honor at home will ensure respect abroad;  
1953-6	1953	Encouragement of those incentives that inspire creative initiative in our  economy, so that its productivity may fortify freedom everywhere; and  
1953-7	1953	Dedication to the well-being of all our citizens and to the attainment of  equality of opportunity for all, so that our Nation will ever act with the  strength of unity in every task to which it is called.  
1953-8	1953	The purpose of this message is to suggest certain lines along which our  joint efforts may immediately be directed toward realization of these four  ruling purposes.  
1953-9	1953	The time that this administration has been in office has been too brief to  permit preparation of a detailed and comprehensive program of recommended  action to cover all phases of the responsibilities that devolve upon our  country's new leaders. Such a program will be filled out in the weeks ahead  as, after appropriate study, I shall submit additional recommendations for  your consideration. Today can provide only a sure and substantial  beginning.  
1953-10	1953	II.  
1953-11	1953	Our country has come through a painful period of trial and disillusionment  since the victory of 1945. We anticipated a world of peace and cooperation.  The calculated pressures of aggressive communism have forced us, instead,  to live in a world of turmoil.  
1953-12	1953	From this costly experience we have learned one clear lesson. We have  learned that the free world cannot indefinitely remain in a posture of  paralyzed tension, leaving forever to the aggressor the choice of time and  place and means to cause greatest hurt to us at least cost to himself.  
1953-13	1953	This administration has, therefore, begun the definition of a new, positive  foreign policy. This policy will be governed by certain fixed ideas. They  are these:  
1953-14	1953	(1) Our foreign policy must be clear, consistent, and confident. This means  that it must be the product of genuine, continuous cooperation between the  executive and the legislative branches of this Government. It must be  developed and directed in the spirit of true bipartisanship.  
1953-15	1953	(2) The policy we embrace must be a coherent global policy. The freedom we  cherish and defend in Europe and in the Americas is no different from the  freedom that is imperiled in Asia.  
1953-16	1953	(3) Our policy, dedicated to making the free world secure, will envision  all peaceful methods and devices--except breaking faith with our friends.  We shall never acquiesce in the enslavement of any people in order to  purchase fancied gain for ourselves. I shall ask the Congress at a later  date to join in an appropriate resolution making clear that this Government  recognizes no kind of commitment contained in secret understandings of the  past with foreign governments which permit this kind of enslavement.  
1953-17	1953	(4) The policy we pursue will recognize the truth that no single country,  even one so powerful as ours, can alone defend the liberty of all nations  threatened by Communist aggression from without or subversion within.  Mutual security means effective mutual cooperation. For the United States,  this means that, as a matter of common sense and national interest, we  shall give help to other nations in the measure that they strive earnestly  to do their full share of the common task. No wealth of aid could  compensate for poverty of spirit. The heart of every free nation must be  honestly dedicated to the preserving of its own independence and security.  
1953-18	1953	(5) Our policy will be designed to foster the advent of practical unity in  Western Europe. The nations of that region have contributed notably to the  effort of sustaining the security of the free world. From the jungles of  Indochina and Malaya to the northern shores of Europe, they have vastly  improved their defensive strength. Where called upon to do so, they have  made costly and bitter sacrifices to hold the line of freedom.  
1953-19	1953	But the problem of security demands closer cooperation among the nations of  Europe than has been known to date. Only a more closely integrated economic  and political system can provide the greatly increased economic strength  needed to maintain both necessary military readiness and respectable living  standards.  
1953-20	1953	Europe's enlightened leaders have long been aware of these facts. All the  devoted work that has gone into the Schuman plan, the European Army, and  the Strasbourg Conference has testified to their vision and determination.  These achievements are the more remarkable when we realize that each of  them has marked a victory--for France and for Germany alike over the  divisions that in the past have brought such tragedy to these two great  nations and to the world.  
1953-21	1953	The needed unity of Western Europe manifestly cannot be manufactured from  without; it can only be created from within. But it is right and necessary  that we encourage Europe's leaders by informing them of the high value we  place upon the earnestness of their efforts toward this goal. Real progress  will be conclusive evidence to the American people that our material  sacrifices in the cause of collective security are matched by essential  political, economic, and military accomplishments in Western Europe.  
1953-22	1953	(6) Our foreign policy will recognize the importance of profitable and  equitable world trade.  
1953-23	1953	A substantial beginning can and should be made by our friends themselves.  Europe, for example, is now marked by checkered areas of labor surplus and  labor shortage, of agricultural areas needing machines and industrial areas  needing food. Here and elsewhere we can hope that our friends will take the  initiative in creating broader markets and more dependable currencies, to  allow greater exchange of goods and services among themselves.  
1953-24	1953	Action along these lines can create an economic environment that will  invite vital help from us.  
1953-25	1953	This help includes:  
1953-26	1953	First: Revising our customs regulations to remove procedural obstacles to  profitable trade. I further recommend that the Congress take the Reciprocal  Trade Agreements Act under immediate study and extend it by appropriate  legislation. This objective must not ignore legitimate safeguarding of  domestic industries, agriculture, and labor standards. In all executive  study and recommendations on this problem labor and management and farmers  alike will be earnestly consulted.  
1953-27	1953	Second: Doing whatever Government properly can to encourage the flow of  private American investment abroad. This involves, as a serious and  explicit purpose of our foreign policy, the encouragement of a hospitable  climate for such investment in foreign nations.  
1953-28	1953	Third: Availing ourselves of facilities overseas for the economical  production of manufactured articles which are needed for mutual defense and  which are not seriously competitive with our own normal peacetime  production.  
1953-29	1953	Fourth: Receiving from the rest of the world, in equitable exchange for  what we supply, greater amounts of important raw materials which we do not  ourselves possess in adequate quantities.  
1953-30	1953	III.  
1953-31	1953	In this general discussion of our foreign policy, I must make special  mention of the war in Korea.  
1953-32	1953	This war is, for Americans, the most painful phase of Communist aggression  throughout the world. It is clearly a part of the same calculated assault  that the aggressor is simultaneously pressing in Indochina and in Malaya,  and of the strategic situation that manifestly embraces the island of  Formosa and the Chinese Nationalist forces there. The working out of any  military solution to the Korean war will inevitably affect all these  areas.  
1953-33	1953	The administration is giving immediate increased attention to the  development of additional Republic of Korea forces. The citizens of that  country have proved their capacity as fighting men and their eagerness to  take a greater share in the defense of their homeland. Organization,  equipment, and training will allow them to do so. Increased assistance to  Korea for this purpose conforms fully to our global policies.  
1953-34	1953	In June 1950, following the aggressive attack on the Republic of Korea, the  United States Seventh Fleet was instructed both to prevent attack upon  Formosa and also to insure that Formosa should not be used as a base of  operations against the Chinese Communist mainland.  
1953-35	1953	This has meant, in effect, that the United States Navy was required to  serve as a defensive arm of Communist China. Regardless of the situation in  1950, since the date of that order the Chinese Communists have invaded  Korea to attack the United Nations forces there. They have consistently  rejected the proposals of the United Nations Command for an armistice. They  recently joined with Soviet Russia in rejecting the armistice proposal  sponsored in the United Nations by the Government of India. This proposal  had been accepted by the United States and 53 other nations.  
1953-36	1953	Consequently there is no longer any logic or sense in a condition that  required the United States Navy to assume defensive responsibilities on  behalf of the Chinese Communists, thus permitting those Communists, with  greater impunity, to kill our soldiers and those of our United Nations  allies in Korea.  
1953-37	1953	I am, therefore, issuing instructions that the Seventh Fleet no longer be  employed to shield Communist China. This order implies no aggressive intent  on our part. But we certainly have no obligation to protect a nation  fighting us in Korea.  
1953-38	1953	IV.  
1953-39	1953	Our labor for peace in Korea and in the world imperatively demands the  maintenance by the United States of a strong fighting service ready for any  contingency.  
1953-40	1953	Our problem is to achieve adequate military strength within the limits of  endurable strain upon our economy. To amass military power without regard  to our economic capacity would be to defend ourselves against one kind of  disaster by inviting another.  
1953-41	1953	Both military and economic objectives demand a single national military  policy, proper coordination of our armed services, and effective  consolidation of certain logistics activities.  
1953-42	1953	We must eliminate waste and duplication of effort in the armed services.  
1953-43	1953	We must realize clearly that size alone is not sufficient. The biggest  force is not necessarily the best--and we want the best.  
1953-44	1953	We must not let traditions or habits of the past stand in the way of  developing an efficient military force. All members of our forces must be  ever mindful that they serve under a single flag and for a single cause.  
1953-45	1953	We must effectively integrate our armament programs and plan them in such  careful relation to our industrial facilities that we assure the best use  of our manpower and our materials.  
1953-46	1953	Because of the complex technical nature of our military organization and  because of the security reasons involved, the Secretary of Defense must  take the initiative and assume the responsibility for developing plans to  give our Nation maximum safety at minimum cost. Accordingly, the new  Secretary of Defense and his civilian and military associates will, in the  future, recommend such changes in present laws affecting our defense  activities as may be necessary to clarify responsibilities and improve the  total effectiveness of our defense effort.  
1953-47	1953	This effort must always conform to policies laid down in the National  Security Council.  
1953-48	1953	The statutory function of the National Security Council is to assist the  President in the formulation and coordination of significant domestic,  foreign, and military policies required for the security of the Nation. In  these days of tension it is essential that this central body have the  vitality to perform effectively its statutory role. I propose to see that  it does so.  
1953-49	1953	Careful formulation of policies must be followed by clear understanding of  them by all peoples. A related need, therefore, is to make more effective  all activities of the Government related to international information.  
1953-50	1953	I have recently appointed a committee of representative and informed  citizens to survey this subject and to make recommendations in the near  future for legislative, administrative, or other action.  
1953-51	1953	A unified and dynamic effort in this whole field is essential to the  security of the United States and of the other peoples in the community of  free nations. There is but one sure way to avoid total war--and that is to  win the cold war.  
1953-52	1953	While retaliatory power is one strong deterrent to a would-be aggressor,  another powerful deterrent is defensive power. No enemy is likely to  attempt an attack foredoomed to failure.  
1953-53	1953	Because the building of a completely impenetrable defense against attack is  still not possible, total defensive strength must include civil defense  preparedness. Because we have incontrovertible evidence that Soviet Russia  possesses atomic weapons, this kind of protection becomes sheer necessity.  
1953-54	1953	Civil defense responsibilities primarily belong to the State and local  governments--recruiting, training, and organizing volunteers to meet any  emergency. The immediate job of the Federal Government is to provide  leadership, to supply technical guidance, and to continue to strengthen its  civil defense stockpile of medical, engineering, and related supplies and  equipment. This work must go forward without lag.  
1953-55	1953	V.  
1953-56	1953	I have referred to the inescapable need for economic health and strength if  we are to maintain adequate military power and exert influential leadership  for peace in the world.  
1953-57	1953	Our immediate task is to chart a fiscal and economic policy that can:  
1953-58	1953	(1) Reduce the planned deficits and then balance the budget, which means,  among other things, reducing Federal expenditures to the safe minimum;  
1953-59	1953	(2) Meet the huge costs of our defense;  
1953-60	1953	(3) Properly handle the burden of our inheritance of debt and obligations;  
1953-61	1953	(4) Check the menace of inflation;  
1953-62	1953	(5) Work toward the earliest possible reduction of the tax burden;  
1953-63	1953	(6) Make constructive plans to encourage the initiative of our citizens.  
1953-64	1953	It is important that all of us understand that this administration does not  and cannot begin its task with a clean slate. Much already has been written  on the record, beyond our power quickly to erase or to amend. This record  includes our inherited burden of indebtedness and obligations and  deficits.  
1953-65	1953	The current year's budget, as you know, carries a 5.9 billion dollar  deficit; and the budget, which was presented to you before this  administration took office, indicates a budgetary deficit of 9.9 billion  for the fiscal year ending June 30, 1954. The national debt is now more  than 265 billion dollars. In addition, the accumulated obligational  authority of the Federal Government for future payment totals over 80  billion dollars. Even this amount is exclusive of large contingent  liabilities, so numerous and extensive as to be almost beyond description.  
1953-66	1953	The bills for the payment of nearly all of the 80 billion dollars of  obligations will be presented during the next 4 years. These bills, added  to the current costs of government we must meet, make a formidable burden.  
1953-67	1953	The present authorized Government-debt limit is 275 billion dollars. The  forecast presented by the outgoing administration with the fiscal year 1954  budget indicates that--before the end of the fiscal year and at the peak of  demand for payments during the year--the total Government debt may approach  and even exceed that limit. Unless budgeted deficits are checked, the  momentum of past programs will force an increase of the statutory debt  limit.  
1953-68	1953	Permit me this one understatement: to meet and to correct this situation  will not be easy.  
1953-69	1953	Permit me this one assurance: every department head and I are determined to  do everything we can to resolve it.  
1953-70	1953	The first order of business is the elimination of the annual deficit. This  cannot be achieved merely by exhortation. It demands the concerted action  of all those in responsible positions in the Government and the earnest  cooperation of the Congress.  
1953-71	1953	Already, we have begun an examination of the appropriations and  expenditures of all departments in an effort to find significant items that  may be decreased or canceled without damage to our essential requirements.  
1953-72	1953	Getting control of the budget requires also that State and local  governments and interested groups of citizens restrain themselves in their  demands upon the Congress that the Federal Treasury spend more and more  money for all types of projects.  
1953-73	1953	A balanced budget is an essential first measure in checking further  depreciation in the buying power of the dollar. This is one of the critical  steps to be taken to bring an end to planned inflation. Our purpose is to  manage the Government's finances so as to help and not hinder each family  in balancing its own budget.  
1953-74	1953	Reduction of taxes will be justified only as we show we can succeed in  bringing the budget under control. As the budget is balanced and inflation  checked, the tax burden that today stifles initiative can and must be  eased.  
1953-75	1953	Until we can determine the extent to which expenditures can be reduced, it  would not be wise to reduce our revenues.  
1953-76	1953	Meanwhile, the tax structure as a whole demands review. The Secretary of  the Treasury is undertaking this study immediately. We must develop a  system of taxation which will impose the least possible obstacle to the  dynamic growth of the country. This includes particularly real opportunity  for the growth of small businesses. Many readjustments in existing taxes  will be necessary to serve these objectives and also to remove existing  inequities. Clarification and simplification in the tax laws as well as the  regulations will be undertaken.  
1953-77	1953	In the entire area of fiscal policy--which must, in its various aspects, be  treated in recommendations to the Congress in coming weeks--there can now  be stated certain basic facts and principles.  
1953-78	1953	First. It is axiomatic that our economy is a highly complex and sensitive  mechanism. Hasty and ill-considered action of any kind could seriously  upset the subtle equation that encompasses debts, obligations,  expenditures, defense demands, deficits, taxes, and the general economic  health of the Nation. Our goals can be clear, our start toward them can be  immediate--but action must be gradual.  
1953-79	1953	Second. It is clear that too great a part of the national debt comes due in  too short a time. The Department of the Treasury will undertake at suitable  times a program of extending part of the debt over longer periods and  gradually placing greater amounts in the hands of longer-term investors.  
1953-80	1953	Third. Past differences in policy between the Treasury and the Federal  Reserve Board have helped to encourage inflation. Henceforth, I expect that  their single purpose shall be to serve the whole Nation by policies  designed to stabilize the economy and encourage the free play of our  people's genius for individual initiative.  
1953-81	1953	In encouraging this initiative, no single item in our current problems has  received more thoughtful consideration by my associates, and by the many  individuals called into our counsels, than the matter of price and wage  control by law.  
1953-82	1953	The great economic strength of our democracy has developed in an atmosphere  of freedom. The character of our people resists artificial and arbitrary  controls of any kind. Direct controls, except those on credit, deal not  with the real causes of inflation but only with its symptoms. In times of  national emergency, this kind of control has a role to play. Our whole  system, however, is based upon the assumption that, normally, we should  combat wide fluctuations in our price structure by relying largely on the  effective use of sound fiscal and monetary policy, and upon the natural  workings of economic law.  
1953-83	1953	Moreover, American labor and American business can best resolve their wage  problems across the bargaining table. Government should refrain from  sitting in with them unless, in extreme cases, the public welfare requires  protection.  
1953-84	1953	We are, of course, living in an international situation that is neither an  emergency demanding full mobilization, nor is it peace. No one can know how  long this condition will persist. Consequently, we are forced to learn many  new things as we go along-clinging to what works, discarding what does  not.  
1953-85	1953	In all our current discussions on these and related facts, the weight of  evidence is clearly against the use of controls in their present forms.  They have proved largely unsatisfactory or unworkable. They have not  prevented inflation; they have not kept down the cost of living.  Dissatisfaction with them is wholly justified. I am convinced that now--as  well as in the long run--free and competitive prices will best serve the  interests of all the people, and best meet the changing, growing needs of  our economy.  
1953-86	1953	Accordingly, I do not intend to ask for a renewal of the present wage and  price controls on April 30, 1953, when present legislation expires. In the  meantime, steps will be taken to eliminate controls in an orderly manner,  and to terminate special agencies no longer needed for this purpose. It is  obviously to be expected that the removal of these controls will result in  individual price changes--some up, some down. But a maximum of freedom in  market prices as well as in collective bargaining is characteristic of a  truly free people.  
1953-87	1953	I believe also that material and product controls should be ended, except  with respect to defense priorities and scarce and critical items essential  for our defense. I shall recommend to the Congress that legislation be  enacted to continue authority for such remaining controls of this type as  will be necessary after the expiration of the existing statute on June 30,  1953.  
1953-88	1953	I recommend the continuance of the authority for Federal control over rents  in those communities in which serious housing shortages exist. These are  chiefly the so-called defense areas. In these and all areas the Federal  Government should withdraw from the control of rents as soon as  practicable. But before they are removed entirely, each legislature should  have full opportunity to take over, within its own State, responsibility  for this function.  
1953-89	1953	It would be idle to pretend that all our problems in this whole field of  prices will solve themselves by mere Federal withdrawal from direct  controls.  
1953-90	1953	We shall have to watch trends closely. If the freer functioning of our  economic system, as well as the indirect controls which can be  appropriately employed, prove insufficient during this period of strain and  tension, I shall promptly ask the Congress to enact such legislation as may  be required.  
1953-91	1953	In facing all these problems--wages, prices, production, tax rates, fiscal  policy, deficits--everywhere we remain constantly mindful that the time for  sacrifice has not ended. But we are concerned with the encouragement of  competitive enterprise and individual initiative precisely because we know  them to be our Nation's abiding sources of strength.  
1953-92	1953	VI.  
1953-93	1953	Our vast world responsibility accents with urgency our people's elemental  right to a government whose clear qualities are loyalty, security,  efficiency, economy, and integrity.  
1953-94	1953	The safety of America and the trust of the people alike demand that the  personnel of the Federal Government be loyal in their motives and reliable  in the discharge of their duties. Only a combination of both loyalty and  reliability promises genuine security.  
1953-95	1953	To state this principle is easy; to apply it can be difficult. But this  security we must and shall have. By way of example, all principal new  appointees to departments and agencies have been investigated at their own  request by the Federal Bureau of Investigation.  
1953-96	1953	Confident of your understanding and cooperation, I know that the primary  responsibility for keeping out the disloyal and the dangerous rests  squarely upon the executive branch. When this branch so conducts itself as  to require policing by another branch of the Government, it invites its own  disorder and confusion.  
1953-97	1953	I am determined to meet this responsibility of the Executive. The heads of  all executive departments and agencies have been instructed to initiate at  once effective programs of security with respect to their personnel. The  Attorney General will advise and guide the departments and agencies in the  shaping of these programs, designed at once to govern the employment of new  personnel and to review speedily any derogatory information concerning  incumbent personnel.  
1953-98	1953	To carry out these programs, I believe that the powers of the executive  branch under existing law are sufficient. If they should prove inadequate,  the necessary legislation will be requested.  
1953-99	1953	These programs will be both fair to the rights of the individual and  effective for the safety of the Nation. They will, with care and justice,  apply the basic principle that public employment is not a right but a  privilege.  
1953-100	1953	All these measures have two clear purposes: Their first purpose is to make  certain that this Nation's security is not jeopardized by false servants.  Their second purpose is to clear the atmosphere of that unreasoned  suspicion that accepts rumor and gossip as substitutes for evidence.  
1953-101	1953	Our people, of course, deserve and demand of their Federal Government more  than security of personnel. They demand, also, efficient and logical  organization, true to constitutional principles.  
1953-102	1953	I have already established a Committee on Government Organization. The  Committee is using as its point of departure the reports of the Hoover  Commission and subsequent studies by several independent agencies. To  achieve the greater efficiency and economy which the Committee analyses  show to be possible, I ask the Congress to extend the present Government  Reorganization Act for a period of 18 months or 2 years beyond its  expiration date of April 1, 1953.  
1953-103	1953	There is more involved here than realigning the wheels and smoothing the  gears of administrative machinery. The Congress rightfully-expects the  Executive to take the initiative in discovering and removing outmoded  functions and eliminating duplication.  
1953-104	1953	One agency, for example, whose head has promised early and vigorous action  to provide greater efficiency is the Post Office. One of the oldest  institutions of our Federal Government, its service should be of the best.  Its employees should merit and receive the high regard and esteem of the  citizens of the Nation. There are today in some areas of the postal  service, both waste and incompetence to be corrected. With the cooperation  of the Congress, and taking advantage of its accumulated experience in  postal affairs, the Postmaster General will institute a program directed at  improving service while at the same time reducing costs and decreasing  deficits.  
1953-105	1953	In all departments, dedication to these basic precepts of security and  efficiency, integrity, and economy can and will produce an administration  deserving of the trust the people have placed in it.  
1953-106	1953	Our people have demanded nothing less than good, efficient government. They  shall get nothing less.  
1953-107	1953	VII.  
1953-108	1953	Vitally important are the water and minerals, public lands and standing  timber, forage and wild-life of this country. A fast-growing population will  have vast future needs in these resources. We must more than match the  substantial achievements in the half-century since President Theodore  Roosevelt awakened the Nation to the problem of conservation.  
1953-109	1953	This calls for a strong Federal program in the field of resource  development. Its major projects should be timed, where possible to assist  in leveling off peaks and valleys in our economic life. Soundly planned  projects already initiated should be carried out. New ones will be planned  for the future.  
1953-110	1953	The best natural resources program for America will not result from  exclusive dependence on Federal bureaucracy. It will involve a partnership  of the States and local communities, private citizens, and the Federal  Government, all working together. This combined effort will advance the  development of the great river valleys of our Nation and the power that  they can generate. Likewise, such a partnership can be effective in the  expansion throughout the Nation of upstream storage; the sound use of  public lands; the wise conservation of minerals; and the sustained yield of  our forests.  
1953-111	1953	There has been much criticism, some of it apparently justified, of the  confusion resulting from overlapping Federal activities in the entire field  of resource-conservation. This matter is being exhaustively studied and  appropriate reorganization plans will be developed.  
1953-112	1953	Most of these particular resource problems pertain to the Department of the  Interior. Another of its major concerns is our country's island  possessions. Here, one matter deserves attention. The platforms of both  political parties promised immediate statehood to Hawaii. The people of  that Territory have earned that status. Statehood should be granted  promptly with the first election scheduled for 1954.  
1953-113	1953	VIII.  
1953-114	1953	One of the difficult problems which face the new administration is that of  the slow, irregular decline of farm prices. This decline, which has been  going on for almost 2 years, has occurred at a time when most nonfarm  prices and farm costs of production are extraordinarily high.  
1953-115	1953	Present agricultural legislation provides for the mandatory support of the  prices of basic farm commodities at 90 percent of parity. The Secretary of  Agriculture and his associates will, of course, execute the present act  faithfully and thereby seek to mitigate the consequences of the downturn in  farm income.  
1953-116	1953	This price-support legislation will expire at the end of 1954.  
1953-117	1953	So we should begin now to consider what farm legislation we should develop  for 1955 and beyond. Our aim should be economic stability and full parity  of income for American farmers. But we must seek this goal in ways that  minimize governmental interference in the farmers' affairs, that permit  desirable shifts in production, and that encourage farmers themselves to  use initiative in meeting changing economic conditions.  
1953-118	1953	A continuing study reveals nothing more emphatically than the complicated  nature of this subject. Among other things, it shows that the prosperity of  our agriculture depends directly upon the prosperity of the whole  country--upon the purchasing power of American consumers. It depends also  upon the opportunity to ship abroad large surpluses of particular  commodities, and therefore upon sound economic relationships between the  United States and many foreign countries. It involves research and  scientific investigation, conducted on an extensive scale. It involves  special credit mechanisms and marketing, rural electrification, soil  conservation, and other programs.  
1953-119	1953	The whole complex of agricultural programs and policies will be studied by  a Special Agricultural Advisory Commission, as I know it will by  appropriate committees of the Congress. A nonpartisan group of respected  authorities in the field of agriculture has already been appointed as an  interim advisory group.  
1953-120	1953	The immediate changes needed in agricultural programs are largely budgetary  and administrative in nature. New policies and new programs must await the  completion of the far-reaching studies which have already been launched.  
1953-121	1953	IX.  
1953-122	1953	The determination of labor policy must be governed not by the vagaries of  political expediency but by the firmest principles and convictions. Slanted  partisan appeals to American workers, spoken as if they were a group apart,  necessitating a special language and treatment, are an affront to the  fullness of their dignity as American citizens.  
1953-123	1953	The truth in matters of labor policy has become obscured in controversy.  The very meaning of economic freedom as it affects labor has become  confused. This misunderstanding has provided a climate of opinion favoring  the growth of governmental paternalism in labor relations. This tendency,  if left uncorrected, could end only by producing a bureaucratic despotism.  Economic freedom is, in fact, the requisite of greater prosperity for every  American who earns his own living.  
1953-124	1953	In the field of labor legislation, only a law that merits the respect and  support of both labor and management can help reduce the loss of wages and  of production through strikes and stoppages, and thus add to the total  economic strength of our Nation.  
1953-125	1953	We have now had 5 years' experience with the Labor Management Act of 1947,  commonly known as the Taft-Hartley Act. That experience has shown the need  for some corrective action, and we should promptly proceed to amend that  act.  
1953-126	1953	I know that the Congress is already proceeding with renewed studies of this  subject. Meanwhile, the Department of Labor is at once beginning work to  devise further specific recommendations for your consideration.  
1953-127	1953	In the careful working out of legislation, I know you will give thoughtful  consideration--as will we in the executive branch--to the views of labor,  and of management, and of the general public. In this process, it is only  human that each of us should bring forward the arguments of self-interest.  But if all conduct their arguments in the overpowering light of national  interest--which is enlightened self-interest--we shall get the right  answers. I profoundly hope that every citizen of our country will follow  with understanding your progress in this work. The welfare of all of us is  involved.  
1953-128	1953	Especially must we remember that the institutions of trade unionism and  collective bargaining are monuments to the freedom that must prevail in our  industrial life. They have a century of honorable achievement behind them.  Our faith in them is proven, firm, and final.  
1953-129	1953	Government can do a great deal to aid the settlement of labor disputes  without allowing itself to be employed as an ally of either side. Its  proper role in industrial strife is to encourage the processes of mediation  and conciliation. These processes can successfully be directed only by a  government free from the taint of any suspicion that it is partial or  punitive.  
1953-130	1953	The administration intends to strengthen and to improve the services which  the Department of Labor can render to the worker and to the whole national  community. This Department was created--just 40 years ago--to serve the  entire Nation. It must aid, for example, employers and employees alike in  improving training programs that will develop skilled and competent  workers. It must enjoy the confidence and respect of labor and industry in  order to play a significant role in the planning of America's economic  future. To that end, I am authorizing the Department of Labor to establish  promptly a tripartite advisory committee consisting of representatives of  employers, labor, and the public.  
1953-131	1953	X.  
1953-132	1953	Our civil and social rights form a central part of the heritage we are  striving to defend on all fronts and with all our strength. I believe with  all my heart that our vigilant guarding of these rights is a sacred  obligation binding upon every citizen. To be true to one's own freedom is,  in essence, to honor and respect the freedom of all others.  
1953-133	1953	A cardinal ideal in this heritage we cherish is the equality of rights of  all citizens of every race and color and creed.  
1953-134	1953	We know that discrimination against minorities persists despite our  allegiance to this ideal. Such discrimination--confined to no one section  of the Nation--is but the outward testimony to the persistence of distrust  and of fear in the hearts of men.  
1953-135	1953	This fact makes all the more vital the fighting of these wrongs by each  individual, in every station of life, in his every deed.  
1953-136	1953	Much of the answer lies in the power of fact, fully publicized; of  persuasion, honestly pressed; and of conscience, justly aroused. These are  methods familiar to our way of life, tested and proven wise.  
1953-137	1953	I propose to use whatever authority exists in the office of the President  to end segregation in the District of Columbia, including the Federal  Government, and any segregation in the Armed Forces.  
1953-138	1953	Here in the District of Columbia, serious attention should be given to the  proposal to develop and authorize, through legislation, a system to provide  an effective voice in local self-government. While consideration of this  proceeds, I recommend an immediate increase of two in the number of  District Commissioners to broaden representation of all elements of our  local population. This will be a first step toward insuring that this  Capital provide an honored example to all communities of our Nation.  
1953-139	1953	In this manner, and by the leadership of the office of the President  exercised through friendly conferences with those in authority in our  States and cities, we expect to make true and rapid progress in civil  rights and equality of employment opportunity.  
1953-140	1953	There is one sphere in which civil rights are inevitably involved in  Federal legislation. This is the sphere of immigration.  
1953-141	1953	It is a manifest right of our Government to limit the number of immigrants  our Nation can absorb. It is also a manifest right of our Government to set  reasonable requirements on the character and the numbers of the people who  come to share our land and our freedom.  
1953-142	1953	It is well for us, however, to remind ourselves occasionally of an equally  manifest fact: we are--one and all--immigrants or sons and daughters of  immigrants.  
1953-143	1953	Existing legislation contains injustices. It does, in fact, discriminate. I  am informed by Members of the Congress that it was realized, at the time of  its enactment, that future study of the basis of determining quotas would  be necessary.  
1953-144	1953	I am therefore requesting the Congress to review this legislation and to  enact a statute that will at one and the same time guard our legitimate  national interests and be faithful to our basic ideas of freedom and  fairness to all.  
1953-145	1953	In another but related area--that of social rights--we see most clearly the  new application of old ideas of freedom.  
1953-146	1953	This administration is profoundly aware of two great needs born of our  living in a complex industrial economy. First, the individual citizen must  have safeguards against personal disaster inflicted by forces beyond his  control; second, the welfare of the people demands effective and economical  performance by the Government of certain indispensable social services.  
1953-147	1953	In the light of this responsibility, certain general purposes and certain  concrete measures are plainly indicated now.  
1953-148	1953	There is urgent need for greater effectiveness in our programs, both public  and private, offering safeguards against the privations that too often come  with unemployment, old age, illness, and accident. The provisions of the  old-age and survivors insurance law should promptly be extended to cover  millions of citizens who have been left out of the social-security system.  No less important is the encouragement of privately sponsored pension  plans. Most important of all, of course, is renewed effort to check the  inflation which destroys so much of the value of all social-security  payments.  
1953-149	1953	Our school system demands some prompt, effective help. During each of the  last 9 years, more than 1 1/2 million children have swelled the elementary  and secondary school population of the country. Generally, the school  population is proportionately higher in States with low per capita income.  This whole situation calls for careful congressional study and action. I am  sure that you share my conviction that the firm conditions of Federal aid  must be proved need and proved lack of local income.  
1953-150	1953	One phase of the school problem demands special action. The school  population of many districts has been greatly increased by the swift  growth of defense activities. These activities have added little or nothing  to the tax resources of the communities affected. Legislation aiding  construction of schools in the districts expires on June 30. This law  should be renewed; and likewise, the partial payments for current operating  expenses for these particular school districts should be made, including  the deficiency requirement of the current fiscal year.  
1953-151	1953	Public interest similarly demands one prompt specific action in protection  of the general consumer. The Food and Drug Administration should be  authorized to continue its established and necessary program of factory  inspections. The invalidation of these inspections by the Supreme Court of  December 8, 1952, was based solely on the fact that the present law  contained inconsistent and unclear provisions. These must be promptly  corrected.  
1953-152	1953	I am well aware that beyond these few immediate measures there remains much  to be done. The health and housing needs of our people call for  intelligently planned programs. Involved are the solvency of the whole  security system; and its guarding against exploitation by the  irresponsible.  
1953-153	1953	To bring clear purpose and orderly procedure into this field, I anticipate  a thorough study of the proper relationship among Federal, State, and local  programs. I shall shortly send you specific recommendations for  establishing such an appropriate commission, together with a reorganization  plan defining new administrative status for all Federal activities in  health, education, and social security.  
1953-154	1953	I repeat that there are many important subjects of which I make no mention  today. Among these is our great and growing body of veterans. America has  traditionally been generous in caring for the disabled--and the widow and  the orphan of the fallen. These millions remain close to all our hearts.  Proper care of our uniformed citizens and appreciation of the past service  of our veterans are part of our accepted governmental responsibilities.  
1953-155	1953	XI  
1953-156	1953	We have surveyed briefly some problems of our people and a portion of the  tasks before us.  
1953-157	1953	The hope of freedom itself depends, in real measure, upon our strength, our  heart, and our wisdom.  
1953-158	1953	We must be strong in arms. We must be strong in the source of all our  armament, our productivity. We all--workers and farmers, foremen and  financiers, technicians and builders--all must produce, produce more, and  produce yet more.  
1953-159	1953	We must be strong, above all, in the spiritual resources upon which all  else depends. We must be devoted with all our heart to the values we  defend. We must know that each of these values and virtues applies with  equal force at the ends of the earth and in our relations with our neighbor  next door. We must know that freedom expresses itself with equal eloquence  in the right of workers to strike in the nearby factory, and in the  yearnings and sufferings of the peoples of Eastern Europe.  
1953-160	1953	As our heart summons our strength, our wisdom must direct it.  
1953-161	1953	There is, in world affairs, a steady course to be followed between an  assertion of strength that is truculent and a confession of helplessness  that is cowardly.  
1953-162	1953	There is, in our affairs at home, a middle way between untrammeled freedom  of the individual and the demands for the welfare of the whole Nation. This  way must avoid government by bureaucracy as carefully as it avoids neglect  of the helpless.  
1953-163	1953	In every area of political action, free men must think before they can  expect to win.  
1953-164	1953	In this spirit must we live and labor: confident of our strength,  compassionate in our heart, clear in our mind.  
1953-165	1953	In this spirit, let us together turn to the great tasks before us.  
1954-1	1954	Mr. President, Mr. Speaker, Members of the Eighty-third Congress:  
1954-2	1954	It is a high honor again to present to the Congress my views on the state  of the Union and to recommend measures to advance the security, prosperity,  and well-being of the American people.  
1954-3	1954	All branches of this Government--and I venture to say both of our great  parties--can support the general objective of the recommendations I make  today, for that objective is the building of a stronger America. A nation  whose every citizen has good reason for bold hope; where effort is rewarded  and prosperity is shared; where freedom expands and peace is secure--that  is what I mean by a stronger America.  
1954-4	1954	Toward this objective a real momentum has been developed during this  Administration's first year in office. We mean to continue that momentum  and to increase it. We mean to build a better future for this nation.  
1954-5	1954	Much for which we may be thankful has happened during the past year.  
1954-6	1954	First of all we are deeply grateful that our sons no longer die on the  distant mountains of Korea. Although they are still called from our homes  to military service, they are no longer called to the field of battle.  
1954-7	1954	The nation has just completed the most prosperous year in its history. The  damaging effect of inflation on the wages, pensions, salaries and savings  of us all has been brought under control. Taxes have begun to go down. The  cost of our government has been reduced and its work proceeds with some  183,000 fewer employees; thus the discouraging trend of modern governments  toward their own limitless expansion has in our case been reversed. The  cost of armaments becomes less oppressive as we near our defense goals; yet  we are militarily stronger every day. During the year, creation of the new  Cabinet Department of Health, Education, and Welfare symbolized the  government's permanent concern with the human problems of our citizens.  
1954-8	1954	Segregation in the armed forces and other Federal activities is on the way  out. We have also made progress toward its elimination in the District of  Columbia. These are steps in the continuing effort to eliminate  inter-racial difficulty.  
1954-9	1954	Some developments beyond our shores have been equally encouraging.  Communist aggression, halted in Korea, continues to meet in Indo-china the  vigorous resistance of France and the Associated States, assisted by timely  aid from our country. In West Germany, in Iran, and in other areas of the  world, heartening political victories have been won by the forces of  stability and freedom. Slowly but surely, the free world gathers strength.  Meanwhile, from behind the iron curtain, there are signs that tyranny is in  trouble and reminders that its structure is as brittle as its surface is  hard.  
1954-10	1954	There has been in fact a great strategic change in the world during the  past year. That precious intangible, the initiative, is becoming ours. Our  policy, not limited to mere reaction against crises provoked by others, is  free to develop along lines of our choice not only abroad, but also at  home. As a major theme for American policy during the coming year, let our  joint determination be to hold this new initiative and to use it.  
1954-11	1954	We shall use this initiative to promote three broad purposes: First, to  protect the freedom of our people; second, to maintain a strong, growing  economy; third, to concern ourselves with the human problems of the  individual citizen.  
1954-12	1954	Only by active concern for each of these purposes can we be sure that we  are on the forward road to a better and a stronger America. All my  recommendations today are in furtherance of these three purposes.  
1954-13	1954	I. FOREIGN AFFAIRS  
1954-14	1954	American freedom is threatened so long as the world Communist conspiracy  exists in its present scope, power and hostility. More closely than ever  before, American freedom is interlocked with the freedom of other people.  In the unity of the free world lies our best chance to reduce the Communist  threat without war. In the task of maintaining this unity and strengthening  all its parts, the greatest responsibility falls naturally on those who,  like ourselves, retain the most freedom and strength.  
1954-15	1954	We shall, therefore, continue to advance the cause of freedom on foreign  fronts.  
1954-16	1954	In the Far East, we retain our vital interest in Korea. We have negotiated  with the Republic of Korea a mutual security pact, which develops our  security system for the Pacific and which I shall promptly submit to the  Senate for its consent to ratification. We are prepared to meet any renewal  of armed aggression in Korea. We shall maintain indefinitely our bases in  Okinawa. I shall ask the Congress to authorize continued material  assistance to hasten the successful conclusion of the struggle in  Indo-china. This assistance will also bring closer the day when the  Associated States may enjoy the independence already assured by France. We  shall also continue military and economic aid to the Nationalist Government  of China.  
1954-17	1954	In South Asia, profound changes are taking place in free nations which are  demonstrating their ability to progress through democratic methods. They  provide an inspiring contrast to the dictatorial methods and backward  course of events in Communist China. In these continuing efforts, the free  peoples of South Asia can be assured of the support of the United States.  
1954-18	1954	In the Middle East, where tensions and serious problems exist, we will show  sympathetic and impartial friendship.  
1954-19	1954	In Western Europe our policy rests firmly on the North Atlantic Treaty. It  will remain so based as far ahead as we can see. Within its organization,  the building of a united European community, including France and Germany,  is vital to a free and self-reliant Europe. This will be promoted by the  European Defense Community which offers assurance of European security.  With the coming of unity to Western Europe, the assistance this Nation can  render for the security of Europe and the free world will be multiplied in  effectiveness.  
1954-20	1954	In the Western Hemisphere we shall continue to develop harmonious and  mutually beneficial cooperation with our neighbors. Indeed, solid  friendship with all our American neighbors is a cornerstone of our entire  policy.  
1954-21	1954	In the world as a whole, the United Nations, admittedly still in a state of  evolution, means much to the United States. It has given uniquely valuable  services in many places where violence threatened. It is the only real  world forum where we have the opportunity for international presentation  and rebuttal. It is a place where the nations of the world can, if they  have the will, take collective action for peace and justice. It is a place  where the guilt can be squarely assigned to those who fail to take all  necessary steps to keep the peace. The United Nations deserves our  continued firm support.  
1954-22	1954	FOREIGN ASSISTANCE AND TRADE  
1954-23	1954	In the practical application of our foreign policy, we enter the field of  foreign assistance and trade.  
1954-24	1954	Military assistance must be continued. Technical assistance must be  maintained. Economic assistance can be reduced. However, our economic  programs in Korea and in a few other critical places of the world are  especially important, and I shall ask Congress to continue them in the next  fiscal year.  
1954-25	1954	The forthcoming Budget Message will propose maintenance of the Presidential  power of transferability of all assistance funds and will ask authority to  merge these funds with the regular defense funds. It will also propose that  the Secretary of Defense have primary responsibility for the administration  of foreign military assistance in accordance with the policy guidance of  the Secretary of State.  
1954-26	1954	The fact that we can now reduce our foreign economic assistance in many  areas is gratifying evidence that its objectives are being achieved. By  continuing to surpass her prewar levels of economic activity, Western  Europe gains self-reliance. Thus our relationship enters a new phase which  can bring results beneficial to our taxpayers and our allies alike, if  still another step is taken.  
1954-27	1954	This step is the creation of a healthier and freer system of trade and  payments within the free world--a system in which our allies can earn their  own way and our own economy can continue to flourish. The free world can no  longer afford the kinds of arbitrary restraints on trade that have  continued ever since the war. On this problem I shall submit to the  Congress detailed recommendations, after our Joint Commission on Foreign  Economic Policy has made its report.  
1954-28	1954	ATOMIC ENERGY PROPOSAL  
1954-29	1954	As we maintain our military strength during the coming year and draw closer  the bonds with our allies, we shall be in an improved position to discuss  outstanding issues with the Soviet Union. Indeed we shall be glad to do so  whenever there is a reasonable prospect of constructive results. In this  spirit the atomic energy proposals of the United States were recently  presented to the United Nations General Assembly. A truly constructive  Soviet reaction will make possible a new start toward an era of peace, and  away from the fatal road toward atomic war.  
1954-30	1954	DEFENSE  
1954-31	1954	Since our hope is peace, we owe ourselves and the world a candid  explanation of the military measures we are taking to make that peace  secure.  
1954-32	1954	As we enter this new year, our military power continues to grow. This power  is for our own defense and to deter aggression. We shall not be aggressors,  but we and our allies have and will maintain a massive capability to strike  back.  
1954-33	1954	Here are some of the considerations in our defense planning:  
1954-34	1954	First, while determined to use atomic power to serve the usages of peace,  we take into full account our great and growing number of nuclear weapons  and the most effective means of using them against an aggressor if they are  needed to preserve our freedom. Our defense will be stronger if, under  appropriate security safeguards, we share with our allies certain knowledge  of the tactical use of our nuclear weapons. I urge the Congress to provide  the needed authority.  
1954-35	1954	Second, the usefulness of these new weapons creates new relationships  between men and materials. These new relationships permit economies in the  use of men as we build forces suited to our situation in the world today.  As will be seen from the Budget Message on January 21, the airpower of our  Navy and Air Force is receiving heavy emphasis.  
1954-36	1954	Third, our armed forces must regain maximum mobility of action. Our  strategic reserves must be centrally placed and readily deployable to meet  sudden aggression against ourselves and our allies.  
1954-37	1954	Fourth, our defense must rest on trained manpower and its most economical  and mobile use. A professional corps is the heart of any security  organization. It is necessarily the teacher and leader of those who serve  temporarily in the discharge of the obligation to help defend the Republic.  Pay alone will not retain in the career service of our armed forces the  necessary numbers of long-term personnel. I strongly urge, therefore, a  more generous use of other benefits important to service morale. Among  these are more adequate living quarters and family housing units and  medical care for dependents.  
1954-38	1954	Studies of military manpower have just been completed by the National  Security Training Commission and a Committee appointed by the Director of  the Office of Defense Mobilization. Evident weaknesses exist in the state  of readiness and organization of our reserve forces. Measures to correct  these weaknesses will be later submitted to the Congress.  
1954-39	1954	Fifth, the ability to convert swiftly from partial to all-out mobilization  is imperative to our security. For the first time, mobilization officials  know what the requirements are for 1,000 major items needed for military  uses. These data, now being related to civilian requirements and our supply  potential, will show us the gaps in our mobilization base. Thus we shall  have more realistic plant-expansion and stockpiling goals. We shall speed  their attainment. This Nation is at last to have an up-to-date mobilization  base--the foundation of a sound defense program.  
1954-40	1954	Another part of this foundation is, of course, our continental transport  system. Some of our vital heavy materials come increasingly from Canada.  Indeed our relations with Canada, happily always close, involve more and  more the unbreakable ties of strategic interdependence. Both nations now  need the St. Lawrence Seaway for security as well as for economic reasons.  I urge the Congress promptly to approve our participation in its  construction.  
1954-41	1954	Sixth, military and non-military measures for continental defense must be  and are being strengthened. In the current fiscal year we are allocating to  these purposes an increasing portion of our effort, and in the next fiscal  year we shall spend nearly a billion dollars more for them than in 1953.  
1954-42	1954	An indispensable part of our continental security is our civil defense  effort. This will succeed only as we have the complete cooperation of State  Governors, Mayors, and voluntary citizen groups. With their help we can  advance a cooperative program which, if an attack should come, would save  many lives and lessen destruction.  
1954-43	1954	The defense program recommended in the 1955 Budget is consistent with all  of the considerations which I have just discussed. It is based on a new  military program unanimously recommended by the Joint Chiefs of Staff and  approved by me following consideration by the National Security Council.  This new program will make and keep America strong in an age of peril.  Nothing should bar its attainment.  
1954-44	1954	The international and defense policies which I have outlined will enable us  to negotiate from a position of strength as we hold our resolute course  toward a peaceful world. We now turn to matters which are normally  characterized as domestic, well realizing that what we do abroad affects  every problem at home--from the amount of taxes to our very state of mind.  
1954-45	1954	INTERNAL SECURITY  
1954-46	1954	Under the standards established for the new employee security program, more  than 2,200 employees have been separated from the Federal government. Our  national security demands that the investigation of new employees and the  evaluation of derogatory information respecting present employees be  expedited and concluded at the earliest possible date. I shall recommend  that the Congress provide additional funds where necessary to speed these  important procedures.  
1954-47	1954	From the special employment standards of the Federal government I turn now  to a matter relating to American citizenship. The subversive character of  the Communist Party in the United States has been clearly demonstrated in  many ways, including court proceedings. We should recognize by law a fact  that is plain to all thoughtful citizens-that we are dealing here with  actions akin to treason--that when a citizen knowingly participates in the  Communist conspiracy he no longer holds allegiance to the United States.  
1954-48	1954	I recommend that Congress enact legislation to provide that a citizen of  the United States who is convicted in the courts of hereafter conspiring to  advocate the overthrow of this government by force or violence be treated  as having, by such act, renounced his allegiance to the United States and  forfeited his United States citizenship.  
1954-49	1954	In addition, the Attorney General will soon appear before your Committees  to present his recommendations for needed additional legal weapons with  which to combat subversion in our country and to deal with the question of  claimed immunity.  
1954-50	1954	II. STRONG ECONOMY  
1954-51	1954	I turn now to the second great purpose of our government: Along with the  protection of freedom, the maintenance of a strong and growing economy.  
1954-52	1954	The American economy is one of the wonders of the world. It undergirds our  international position, our military security, and the standard of living  of every citizen. This Administration is determined to keep our economy  strong and to keep it growing.  
1954-53	1954	At this moment we are in transition from a wartime to a peacetime economy.  I am confident that we can complete this transition without serious  interruption in our economic growth. But we shall not leave this vital  matter to chance. Economic preparedness is fully as important to the nation  as military preparedness.  
1954-54	1954	Subsequent special messages and the economic report on January 28 will set  forth plans of the Administration and its recommendations for Congressional  action. These will include flexible credit and debt management policies;  tax measures to stimulate consumer and business spending; suitable lending,  guaranteeing, insuring, and grant-in-aid activities; strengthened old-age  and unemployment insurance measures; improved agricultural programs;  public-works plans laid well in advance; enlarged opportunities for  international trade and investment. This mere enumeration of these subjects  implies the vast amount of study, coordination, and planning, to say  nothing of authorizing legislation, that altogether make our economic  preparedness complete.  
1954-55	1954	If new conditions arise that require additional administrative or  legislative action, the Administration will still be ready. A government  always ready, as this is, to take well-timed and vigorous action, and a  business community willing, as ours is, to plan boldly and with  confidence, can between them develop a climate assuring steady economic  growth.  
1954-56	1954	THE BUDGET  
1954-57	1954	I shall submit to the Congress on January 21 the first budget prepared by  this Administration, for the period July 1, 1954, through June 1955. This  budget is adequate to the current needs of the government. It recognizes  that a Federal budget should be a stabilizing factor in the economy. Its  tax and expenditure programs will foster individual initiative and economic  growth.  
1954-58	1954	Pending the transmittal of my Budget Message, I shall mention here only a  few points about our budgetary situation.  
1954-59	1954	First, one of our initial acts was to revise, with the cooperation of the  Congress, the Budget prepared before this Administration took office.  Requests for new appropriations were greatly reduced. In addition, the  spending level provided in that Budget for the current fiscal year has been  reduced by about $7,000,000,000. In the next fiscal year we estimate a  further reduction in expenditures of more than $5,000,000,000. This will  reduce the spending level over the two fiscal years by more than  $12,000,000,000. We are also reducing further our requests for new  appropriations.  
1954-60	1954	Second, despite the substantial loss of revenue in the coming fiscal year,  resulting from tax reductions now in effect and tax adjustments which I  shall propose, our reduced spending will move the new budget closer to a  balance.  
1954-61	1954	Third, by keeping new appropriation requests below estimated revenues, we  continue to reduce the tremendous accumulation of unfinanced obligations  incurred by the Government under past appropriations.  
1954-62	1954	Fourth, until those claims on our Government's revenues are further  reduced, the growth in the public debt cannot be entirely stopped. Because  of this--because the government's bills have to be paid every month, while  the tax money to pay them comes in with great unevenness within the fiscal  year--and because of the need for flexibility to manage this enormous debt,  I find it necessary to renew my request for an increase in the statutory  debt limit.  
1954-63	1954	TAXES  
1954-64	1954	The new budget provides for a lower level of taxation than has prevailed in  preceding years. Six days ago individual income taxes were reduced and the  excess profits tax expired. These tax reductions are justified only because  of the substantial reductions we already have made and are making in  governmental expenditures. As additional reductions in expenditures are  brought gradually but surely into sight, further reductions in taxes can  and will be made. When budget savings and sound governmental financing are  assured, tax burdens should be reduced so that taxpayers may spend their  own money in their own way.  
1954-65	1954	While we are moving toward lower levels of taxation we must thoroughly  revise our whole tax system. The groundwork for this revision has already  been laid by the Committee on Ways and Means of the House of  Representatives, in close consultation with the Department of the Treasury.  We should now remove the more glaring tax inequities, particularly on small  taxpayers; reduce restraints on the growth of small business; and make  other changes that will encourage initiative, enterprise and production.  Twenty-five recommendations toward these ends will be contained in my  budget message.  
1954-66	1954	Without attempting to summarize these manifold reforms, I can here  illustrate their tendency. For example, we propose more liberal tax  treatment for dependent children who work, for widows or widowers with  dependent children, and for medical expenses. For the business that wants  to expand or modernize its plant, we propose liberalized tax treatment of  depreciation, research and development expenses, and retained earnings.  
1954-67	1954	Because of the present need for revenue the corporation income tax should  be kept at the current rate of 52% for another year, and the excise taxes  scheduled to be reduced on April first, including those on liquor, tobacco,  gasoline and automobiles, should be continued at present rates.  
1954-68	1954	Immediate extension of the Renegotiation Act of 1951 is also needed to  eliminate excessive profits and to prevent waste of public funds in the  purchase of defense materials.  
1954-69	1954	AGRICULTURE  
1954-70	1954	The well being of our 160 million people demands a stable and prosperous  agriculture. Conversely, every farmer knows he cannot prosper unless all  America prospers. As we seek to promote increases in our standard of  living, we must be sure that the farmer fairly shares in that increase.  Therefore, a farm program promoting stability and prosperity in all  elements of our agriculture is urgently needed.  
1954-71	1954	Agricultural laws now in effect successfully accomplished their wartime  purpose of encouraging maximum production of many crops. Today, production  of these crops at such levels far exceeds present demand. Yet the laws  encouraging such production are still in effect. The storage facilities of  the Commodity Credit Corporation bulge with surplus stocks of dairy  products, wheat, cotton, corn, and certain vegetable oils; and the  Corporation's presently authorized borrowing authority--$6,750,000,000--is  nearly exhausted. Some products, priced out of domestic markets, and  others, priced out of world markets, have piled up in government hands. In  a world in which millions of people are hungry, destruction of food would,  of course, be unconscionable. Yet surplus stocks continue to threaten the  market and in spite of the acreage controls authorized by present law,  surpluses will continue to accumulate.  
1954-72	1954	We confront two alternatives. The first is to impose still greater acreage  reductions for some crops and apply rigid Federal controls over the use of  the diverted acres. This will regiment the production of every basic  agricultural crop. It will place every producer of those crops under the  domination and control of the Federal government in Washington. This  alternative is contrary to the fundamental interests, not only of the  farmer, but of the Nation as a whole. Nor is it a real solution to the  problem facing us.  
1954-73	1954	The second alternative is to permit the market price for these agricultural  products gradually to have a greater influence on the planning of  production by farmers, while continuing the assistance of the government.  This is the sound approach. To make it effective, surpluses existing when  the new program begins must be insulated from the normal channels of trade  for special uses. These uses would include school lunch programs, disaster  relief, emergency assistance to foreign friends, and of particular  importance the stockpiling of reserves for a national emergency.  
1954-74	1954	Building on the agricultural laws of 1948 and 1949, we should establish a  price support program with enough flexibility to attract the production of  needed supplies of essential commodities and to stimulate the consumption  of those commodities that are flooding American markets. Transition to  modernized parity must be accomplished gradually. In no case should there  be an abrupt downward change in the dollar level or in the percentage level  of price supports.  
1954-75	1954	Next Monday I shall transmit to the Congress my detailed recommendations  embodying this approach. They have been developed through the cooperation  of innumerable individuals vitally interested in agriculture. My special  message on Monday will briefly describe the consultative and advisory  processes to which this whole program has been subjected during the past  ten months.  
1954-76	1954	I have chosen this farm program because it will build markets, protect the  consumers' food supply, and move food into consumption instead of into  storage. It is a program that will remove the threat to the farmer of these  overhanging surpluses, a program, also, that will stimulate production when  a commodity is scarce and encourage consumption when nature is bountiful.  Moreover, it will promote the individual freedom, responsibility, and  initiative which distinguish American agriculture. And, by helping our  agriculture achieve full parity in the market, it promises our farmers a  higher and steadier financial return over the years than any alternative  plan.  
1954-77	1954	CONSERVATION  
1954-78	1954	Part of our Nation's precious heritage is its natural resources. It is the  common responsibility of Federal, state, and local governments to improve  and develop them, always working in the closest harmony and partnership.  
1954-79	1954	All Federal conservation and resource development projects are being  reappraised. Sound projects now under way will be continued. New projects  in which the Federal Government has a part must be economically sound, with  local sharing of cost wherever appropriate and feasible. In the next fiscal  year work will be started on twenty-three projects that meet these  standards. The Federal Government will continue to construct and operate  economically sound flood control, power, irrigation and water supply  projects wherever these projects are beyond the capacity of local  initiative, public or private, and consistent with the needs of the whole  Nation.  
1954-80	1954	Our conservation program will also take into account the important role  played by farmers in protecting our soil resources. I recommend enactment  of legislation to strengthen agricultural conservation and upstream flood  prevention work, and to achieve a better balance with major flood control  structures in the down-stream areas.  
1954-81	1954	Recommendations will be made from time to time for the adoption of:  
1954-82	1954	A uniform and consistent water resources policy;  
1954-83	1954	A revised public lands policy; and  
1954-84	1954	A sound program for safeguarding the domestic production of critical and  strategic metals and minerals.  
1954-85	1954	In addition we shall continue to protect and improve our national forests,  parks, monuments and other natural and historic sites, as well as our  fishery and wildlife resources. I hope that pending legislation to improve  the conservation and management of publicly-owned grazing lands in national  forests will soon be approved by the Congress.  
1954-86	1954	NATIONAL HIGHWAYS  
1954-87	1954	To protect the vital interest of every citizen in a safe and adequate  highway system, the Federal Government is continuing its central role in  the Federal Aid Highway Program. So that maximum progress can be made to  overcome present inadequacies in the Interstate Highway System, we must  continue the Federal gasoline tax at two cents per gallon. This will  require cancellation of the 1/2 cent decrease which otherwise will become  effective April 1st, and will maintain revenues so that an expanded highway  program can be undertaken.  
1954-88	1954	When the Commission on Intergovernmental Relations completes its study of  the present system of financing highway construction, I shall promptly  submit it for consideration by the Congress and the governors of the  states.  
1954-89	1954	POST OFFICE  
1954-90	1954	It is apparent that the substantial savings already made, and to be made,  by the Post Office Department cannot eliminate the postal deficit. I  recommend, therefore, that the Congress approve the bill now pending in the  House of Representatives providing for the adjustment of certain postal  rates. To handle the long term aspects of this, I also recommend that the  Congress create a permanent commission to establish fair and reasonable  postal rates from time to time in the future.  
1954-91	1954	III. HUMAN PROBLEMS  
1954-92	1954	Along with the protection of freedom and maintenance of a strong and  growing economy, this Administration recognizes a third great purpose of  government: concern for the human problems of our citizens. In a modern  industrial society, banishment of destitution and cushioning the shock of  personal disaster on the individual are proper concerns of all levels of  government, including the federal government. This is especially true where  remedy and prevention alike are beyond the individual's capacity.  
1954-93	1954	LABOR AND WELFARE  
1954-94	1954	Of the many problems in this area, those I shall first discuss are of  particular concern to the members of our great labor force, who with their  heads, hearts and hands produce so much of the wealth of our country.  
1954-95	1954	Protection against the hazards of temporary unemployment should be extended  to some 6 1/2 millions of workers, including civilian Federal workers, who  now lack this safeguard. Moreover, the Secretary of Labor is making  available to the states studies and recommendations in the fields of weekly  benefits, periods of protection and extension of coverage. The Economic  Report will consider the related matter of minimum wages and their coverage.  
1954-96	1954	The Labor Management Relations Act of 3947 is basically a sound law.  However, six years of experience have revealed that in some respects it can  be improved. On January 11, I shall forward to the Congress suggestions for  changes designed to reinforce the basic objectives of the Act.  
1954-97	1954	Our basic social security program, the Old-Age and Survivors Insurance  system, to which individuals contribute during their productive years and  receive benefits based on previous earnings, is designed to shield them  from destitution. Last year I recommended extension of the social insurance  system to include more than 10,000,000 additional persons. I ask that this  extension soon be accomplished. This and other major improvements in the  insurance system will bring substantial benefit increases and broaden the  membership of the insurance system, thus diminishing the need for Federal  grants-in-aid for such purposes. A new formula will therefore be proposed,  permitting progressive reduction in such grants as the need for them  declines.  
1954-98	1954	Federal grant-in-aid welfare programs, now based on widely varying  formulas, should be simplified. Concrete proposals on fourteen of them will  be suggested to the appropriate Committees.  
1954-99	1954	The program for rehabilitation of the disabled especially needs  strengthening. Through special vocational training, this program presently  returns each year some 60,000 handicapped individuals to productive work.  Far more disabled people can be saved each year from idleness and  dependence if this program is gradually increased. My more detailed  recommendations on this and the other social insurance problems I have  mentioned will be sent to the Congress on January 14th.  
1954-100	1954	HEALTH  
1954-101	1954	I am flatly opposed to the socialization of medicine. The great need for  hospital and medical services can best be met by the initiative of private  plans. But it is unfortunately a fact that medical costs are rising and  already impose severe hardships on many families. The Federal Government  can do many helpful things and still carefully avoid the socialization of  medicine.  
1954-102	1954	The Federal Government should encourage medical research in its battle with  such mortal diseases as cancer and heart ailments, and should continue to  help the states in their health and rehabilitation programs. The present  Hospital Survey and Construction Act should be broadened in order to assist  in the development of adequate facilities for the chronically ill, and to  encourage the construction of diagnostic centers, rehabilitation  facilities, and nursing homes. The war on disease also needs a better  working relationship between Government and private initiative. Private and  non-profit hospital and medical insurance plans are already in the field,  soundly based on the experience and initiative of the people in their  various communities.  
1954-103	1954	A limited Government reinsurance service would permit the private and  non-profit insurance companies to offer broader protection to more of the  many families which want and should have it. On January 18 I shall forward  to the Congress a special message presenting this Administration's health  program in its detail.  
1954-104	1954	EDUCATION  
1954-105	1954	Youth--our greatest resource--is being seriously neglected in a vital  respect. The nation as a whole is not preparing teachers or building  schools fast enough to keep up with the increase in our population.  
1954-106	1954	The preparation of teachers as, indeed, the control and direction of public  education policy, is a state and local responsibility. However, the Federal  Government should stand ready to assist states which demonstrably cannot  provide sufficient school buildings. In order to appraise the needs, I hope  that this year a conference on education will be held in each state,  culminating in a national conference. From these conferences on education,  every level of government--from the Federal Government to each local school  board--should gain the information with which to attack this serious  problem.  
1954-107	1954	HOUSING  
1954-108	1954	The details of a program to enlarge and improve the opportunities for our  people to acquire good homes will be presented to the Congress by special  message on January 25.  
1954-109	1954	This program will include:  
1954-110	1954	Modernization of the home mortgage insurance program of the Federal  Government;  
1954-111	1954	Redirection of the present system of loans and grants-in-aid to cities for  slum clearance and redevelopment;  
1954-112	1954	Extension of the advantages of insured lending to private credit engaged in  this task of rehabilitating obsolete neighborhoods;  
1954-113	1954	Insurance of long-term, mortgage loans, with small down payment for  low-income families; and, until alternative programs prove more effective,  
1954-114	1954	Continuation of the public housing program adopted in the Housing Act of  1949.  
1954-115	1954	If the individual, the community, the State and federal governments will  alike apply themselves, every American family can have a decent home.  
1954-116	1954	VETERANS ADMINISTRATION  
1954-117	1954	The internal reorganization of the Veterans Administration is proceeding  with my full approval. When completed, it will afford a single agency whose  services, including medical facilities, will be better adapted to the needs  of those 20,000,000 veterans to whom this Nation owes so much.  
1954-118	1954	SUFFRAGE  
1954-119	1954	My few remaining recommendations all relate to a basic right of our  citizens--that of being represented in the decisions of the government.  
1954-120	1954	I hope that the States will cooperate with the Congress in adopting uniform  standards in their voting laws that will make it possible for our citizens  in the armed forces overseas to vote.  
1954-121	1954	In the District of Columbia the time is long overdue for granting national  suffrage to its citizens and also applying the principle of local  self-government to the Nation's Capital. I urge the Congress to move  promptly in this direction and also to revise District revenue measures to  provide needed public works improvements.  
1954-122	1954	The people of Hawaii are ready for statehood. I renew my request for this  legislation in order that Hawaii may elect its State officials and its  representatives in Washington along with the rest of the country this  fall.  
1954-123	1954	For years our citizens between the ages of 18 and 21 have, in time of  peril, been summoned to fight for America. They should participate in the  political process that produces this fateful summons. I urge Congress to  propose to the States a constitutional amendment permitting citizens to  vote when they reach the age of 18.  
1954-124	1954	CONCLUSION  
1954-125	1954	I want to add one final word about the general purport of these many  recommendations.  
1954-126	1954	Our government's powers are wisely limited by the Constitution; but quite  apart from those limitations, there are things which no government can do  or should try to do.  
1954-127	1954	A government can strive, as ours is striving, to maintain an economic  system whose doors are open to enterprise and ambition--those personal  qualities on which economic growth largely depends. But enterprise and  ambition are qualities which no government can supply. Fortunately no  American government need concern itself on this score; our people have  these qualities in good measure.  
1954-128	1954	A government can sincerely strive for peace, as ours is striving, and ask  its people to make sacrifices for the sake of peace. But no government can  place peace in the hearts of foreign rulers. It is our duty then to  ourselves and to freedom itself to remain strong in all those  ways--spiritual, economic, military--that will give us maximum safety  against the possibility of aggressive action by others.  
1954-129	1954	No government can inoculate its people against the fatal materialism that  plagues our age. Happily, our people, though blessed with more material  goods than any people in history, have always reserved their first  allegiance to the kingdom of the spirit, which is the true source of that  freedom we value above all material things.  
1954-130	1954	But a government can try, as ours tries, to sense the deepest aspirations  of the people, and to express them in political action at home and abroad.  So long as action and aspiration humbly and earnestly seek favor in the  sight of the Almighty, there is no end to America's forward road; there is  no obstacle on it she will not surmount in her march toward a lasting peace  in a free and prosperous world.  
1954-131	1954	The Address as reported from the floor appears in the Congressional Record  (vol. 100, p. 62).  
1955-1	1955	Mr. President, Mr. Speaker, Members of the Congress:  
1955-2	1955	First, I extend cordial greetings to the 84th Congress. We shall have much  to do together; I am sure that we shall get it done--and, that we shall do  it in harmony and good will.  
1955-3	1955	At the outset, I believe it would be well to remind ourselves of this great  fundamental in our national life: our common belief that every human being  is divinely endowed with dignity and worth and inalienable rights. This  faith, with its corollary--that to grow and flourish people must be  free--shapes the interests and aspirations of every American.  
1955-4	1955	From this deep faith have evolved three main purposes of our Federal  Government:  
1955-5	1955	First, to maintain justice and freedom among ourselves and to champion them  for others so that we may work effectively for enduring peace;  
1955-6	1955	Second, to help keep our economy vigorous and expanding, thus sustaining  our international strength and assuring better jobs, better living, better  opportunities for every citizen;  
1955-7	1955	And third, to concern ourselves with the human problems of our people so  that every American may have the opportunity to lead a healthy, productive  and rewarding life.  
1955-8	1955	Foremost among these broad purposes of government is our support of  freedom, justice and peace.  
1955-9	1955	It is of the utmost importance, that each of us understand the true nature  of the struggle now taking place in the world.  
1955-10	1955	It is not a struggle merely of economic theories, or of forms of  government, or of military power. At issue is the true nature of man.  Either man is the creature whom the Psalmist described as "a little lower  than the angels," crowned with glory and honor, holding "dominion over the  works" of his Creator; or man is a soulless, animated machine to be  enslaved, used and consumed by the state for its own glorification.  
1955-11	1955	It is, therefore, a struggle which goes to the roots of the human spirit,  and its shadow falls across the long sweep of man's destiny. This prize, so  precious, so fraught with ultimate meaning, is the true object of the  contending forces in the world.  
1955-12	1955	In the past year, there has been progress justifying hope, both for  continuing peace and for the ultimate rule of freedom and justice in the  world. Free nations are collectively stronger than at any time in recent  years.  
1955-13	1955	Just as nations of this Hemisphere, in the historic Caracas and Rio  conferences, have closed ranks against imperialistic Communism and  strengthened their economic ties, so free nations elsewhere have forged new  bonds of unity.  
1955-14	1955	Recent agreements between Turkey and Pakistan have laid a foundation for  increased strength in the Middle East. With our understanding support,  Egypt and Britain, Yugoslavia and Italy, Britain and Iran have resolved  dangerous differences. The security of the Mediterranean has been enhanced  by an alliance among Greece, Turkey and Yugoslavia. Agreements in Western  Europe have paved the way for unity to replace past divisions which have  undermined Europe's economic and military vitality. The defense of the West  appears likely at last to include a free, democratic Germany participating  as an equal in the councils of NATO.  
1955-15	1955	In Asia and the Pacific, the pending Manila Pact supplements our treaties  with Australia, New Zealand, the Philippines, Korea and Japan and our  prospective treaty with the Republic of China. These pacts stand as solemn  warning that future military aggression and subversion against the free  nations of Asia will meet united response. The Pacific Charter, also  adopted at Manila, is a milestone in the development of human freedom and  self-government in the Pacific area.  
1955-16	1955	Under the auspices of the United Nations, there is promise of progress in  our country's plan for the peaceful use of atomic energy.  
1955-17	1955	Finally, today the world is at peace. It is, to be sure, an secure peace.  Yet all humanity finds hope in the simple fact that for an appreciable time  there has been no active major battlefield on earth. This same fact  inspires us to work all the more effectively with other nations for the  well-being, the freedom, the dignity, of every human on earth.  
1955-18	1955	These developments are heartening indeed, and we are hopeful of continuing  progress. But sobering problems remain.  
1955-19	1955	The massive military machines and ambitions of the Soviet-Communist bloc  still create uneasiness in the world. All of us are aware of the continuing  reliance of the Soviet Communists on military force, of the power of their  weapons, of their present resistance to realistic armament limitation, and  of their continuing effort to dominate or intimidate free nations on their  periphery. Their steadily growing power includes an increasing strength in  nuclear weapons. This power, combined with the proclaimed intentions of the  Communist leaders to communize the world, is the threat confronting us  today.  
1955-20	1955	To protect our nations and our peoples from the catastrophe of a nuclear  holocaust, free nations must maintain countervailing military power to  persuade the Communists of the futility of seeking their ends through  aggression. If Communist rulers understand that America's response to  aggression will be swift and decisive--that never shall we buy peace at the  expense of honor or faith--they will be powerfully deterred from launching  a military venture engulfing their own peoples and many others in disaster.  This, of course, is merely world stalemate. But in this stalemate each of  us may and must exercise his high duty to strive in every honorable way for  enduring peace.  
1955-21	1955	The military threat is but one menace to our freedom and security. We must  not only deter aggression; we must also frustrate the effort of Communists  to gain their goals by subversion. To this end, free nations must maintain  and reinforce their cohesion, their internal security, their political and  economic vitality, and their faith in freedom.  
1955-22	1955	In such a world, America's course is dear:  
1955-23	1955	We must tirelessly labor to make the peace more just and durable.  
1955-24	1955	We must strengthen the collective defense under the United Nations Charter  and gird ourselves with sufficient military strength and productive  capacity to discourage resort to war and protect our nation's vital  interests.  
1955-25	1955	We must continue to support and strengthen the United Nations. At this very  moment, by vote of the United Nations General Assembly, its  Secretary-General is in Communist China on a mission of deepest concern to  all Americans: seeking the release of our never-to-be-forgotten American  aviators and all other United Nations prisoners wrongfully detained by the  Communist regime.  
1955-26	1955	We must also encourage the efforts being made in the United Nations to  limit armaments and to harness the atom to peaceful rise.  
1955-27	1955	We must expand international trade and investment and assist friendly  nations whose own best efforts are still insufficient to provide the  strength essential to the security of the free world.  
1955-28	1955	We must be willing to use the processes of negotiation whenever they will  advance the cause of just and secure peace to which the United States and  other free nations are dedicated.  
1955-29	1955	In respect to all these matters, we must, through a vigorous information  program, keep the peoples of the world truthfully advised of our actions  and purposes. This problem has been attacked with new vigor during the past  months. I urge that the Congress give its earnest consideration to the  great advantages that can accrue to our country through the successful  operations of this program.  
1955-30	1955	We must also carry forward our educational exchange program. This sharing  of knowledge and experience between our citizens and those of free  countries is a powerful factor in the development and maintenance of true  partnership among free peoples.  
1955-31	1955	To advance these many efforts, the Congress must act in this session on  appropriations, legislation, and treaties. Today I shall mention especially  our foreign economic and military programs.  
1955-32	1955	The recent economic progress in many free nations has been most heartening.  The productivity of labor and the production of goods and services are  increasing in ever-widening areas. There is a growing will to improve the  living standards of all men. This progress is important to all our people.  It promises us allies who are strong and self-reliant; it promises a  growing world market for the products of our mines, our factories, and our  farms.  
1955-33	1955	But only through steady effort can we hope to continue this progress.  Barriers still impede trade and the flow of capital needed to develop each  nation's human and material resources. Wise reduction of these barriers is  a long-term objective of our foreign economic policy--a policy of an  evolutionary and selective nature, assuring broad benefits to our own and  other peoples.  
1955-34	1955	We must gradually reduce certain tariff obstacles to trade. These actions  should, of course, be accompanied by a similar lowering of trade barriers  by other nations, so that we may move steadily toward greater economic  advantage for all. We must further simplify customs administration and  procedures. We must facilitate the flow of capital and continue technical  assistance, both directly and through the United Nations, to less developed  countries to strengthen their independence and raise their living  standards. Many another step must be taken in and among the nations of the  free world to release forces of private initiative. In our own nation,  these forces have brought strength and prosperity; once released, they will  generate rising incomes in these other countries with which to buy the  products of American industry, labor and agriculture.  
1955-35	1955	On January 10, by special message, I shall submit specific recommendations  for carrying forward the legislative phases of our foreign economic  policy.  
1955-36	1955	Our many efforts to build a better world include the maintenance of our  military strength. This is a vast undertaking. Major national security  programs consume two-thirds of the entire Federal budget. Over four million  Americans--servicemen and civilians--are on the rolls of the defense  establishment. During the past two years, by eliminating duplication and  overstaffing, by improved procurement and inventory controls, and by  concentrating on the essentials, many billions of dollars have been saved  in our defense activities. I should like to mention certain fundamentals  underlying this vast program.  
1955-37	1955	First, a realistic limitation of armaments and an enduring, just peace  remain our national goals; we maintain powerful military forces because  there is no present alternative--forces designed for deterrent and  defensive purposes alone but able instantly to strike back with destructive  power in response to an attack.  
1955-38	1955	Second, we must stay alert to the fact that undue reliance on one weapon or  preparation for only one kind of warfare simply invites an enemy to resort  to another. We must, therefore, keep in our armed forces balance and  flexibility adequate for our purposes and objectives.  
1955-39	1955	Third, to keep our armed forces abreast of the advances of science, our  military planning must be flexible enough to utilize the new weapons and  techniques which flow ever more speedily from our research and development  programs. The forthcoming military budget therefore emphasizes modern  airpower in the Air Force, Navy and Marine Corps and increases the emphasis  on new weapons, especially those of rapid and destructive striking power.  It assures the maintenance of effective, retaliatory force as the principal  deterrent to overt aggression. It accelerates the continental defense  program and the build-up of ready military reserve forces. It continues a  vigorous program of stockpiling strategic and critical materials and  strengthening our mobilization base. The budget also contemplates the  strategic concentration of our strength through redeployment of certain  forces. It provides for reduction of forces in certain categories and their  expansion in others, to fit them to the military realities of our time.  These emphases in our defense planning have been made at my personal  direction after long and thoughtful study. In my judgment, they will give  our nation a defense accurately adjusted to the national need.  
1955-40	1955	Fourth, pending a world agreement on armament limitation, we must continue  to improve and expand our supplies of nuclear weapons for our land, naval  and air forces, while, at the same time, continuing our encouraging  progress in the peaceful use of atomic power.  
1955-41	1955	And fifth, in the administration of these costly programs, we must demand  the utmost in efficiency and ingenuity. We must assure our people not only  of adequate protection but also of a defense that can be carried forward  from year to year until the threat of aggression has disappeared.  
1955-42	1955	To help maintain this kind of armed strength and improve its efficiency, I  must urge the enactment of several important measures in this session.  
1955-43	1955	The first concerns the selective service act which expires next June 30th.  For the foreseeable future, our standing forces must remain much larger  than voluntary methods can sustain. We must, therefore, extend the  statutory authority to induct men for two years of military service.  
1955-44	1955	The second kind of measure concerns the rapid turnover of our most  experienced servicemen. This process seriously weakens the combat readiness  of our armed forces and is exorbitantly expensive. To encourage more  trained servicemen to remain in uniform, I shall, on the thirteenth of this  month, propose a number of measures to increase the attractions of a  military career. These measures will include more adequate medical care for  dependents, survivors' benefits, more and better housing, and selective  adjustments in military pay and other allowances.  
1955-45	1955	And third--also on January 13--I shall present a program to rebuild and  strengthen the civilian components of our armed forces. This is a  comprehensive program, designed to make better use of our manpower of  military age. Because it will go far in assuring fair and equitable  participation in military training and service, it is of particular  importance to our combat veterans. In keeping with the historic military  policy of our Republic, this program is designed to build and maintain  powerful civilian reserves immediately capable of effective military  service in an emergency in lieu of maintaining active duty forces in excess  of the nation's immediate need.  
1955-46	1955	Maintenance of an effective defense requires continuance of our aggressive  attack on subversion at home. In this effort we have, in the past two  years, made excellent progress. FBI investigations have been powerfully  reinforced by a new Internal Security Division in the Department of  Justice; the security activities of the Immigration and Naturalization  Service have been revitalized; an improved and strengthened security system  is in effect throughout the government; the Department of Justice and the  FBI have been armed with effective new legal weapons forged by the 83rd  Congress.  
1955-47	1955	We shall continue to ferret out and to destroy Communist subversion.  
1955-48	1955	We shall, in the process, carefully preserve our traditions and the basic  rights of our citizens.  
1955-49	1955	Our civil defense program is also a key element in the protection of our  country. We are developing cooperative methods with State Governors,  Mayors, and voluntary citizen groups, as well as among Federal agencies, in  building the civil defense organization. Its significance in time of war is  obvious; its swift assistance in disaster areas last year proved its  importance in time of peace.  
1955-50	1955	An industry capable of rapid expansion and essential materials and  facilities swiftly available in time of emergency are indispensable to our  defense. I urge, therefore, a two-year extension of the Defense Production  Act and Title II of the First War Powers Act of 1941. These are  cornerstones of our program for the development and maintenance of an  adequate mobilization base. At this point, I should like to make this  additional observation. Our quest for peace and freedom necessarily  presumes that we who hold positions of public trust must rise above self  and section--that we must subordinate to the general good our partisan, our  personal pride and prejudice. Tirelessly, with united purpose, we must  fortify the material and spiritual foundations of this land of freedom and  of free nations throughout the world. As never before, there is need for  unhesitating cooperation among the branches of our government.  
1955-51	1955	At this time the executive and legislative branches are under the  management of different political parties. This fact places both parties on  trial before the American people.  
1955-52	1955	In less perilous days of the past, division of governmental responsibility  among our great parties has produced a paralyzing indecision. We must not  let this happen in our time. We must avoid a paralysis of the will for  peace and international security.  
1955-53	1955	In the traditionally bipartisan areas--military security and foreign  relations--I can report to you that I have already, with the leaders of  this Congress, expressed assurances of unreserved cooperation. Yet, the  strength of our country requires more than mere maintenance of military  strength and success in foreign affairs; these vital matters are in turn  dependent upon concerted and vigorous action in a number of supporting  programs. I say, therefore, to the 84th Congress:  
1955-54	1955	In all areas basic to the strength of America, there will be--to the extent  I can insure them--cooperative, constructive relations between the  Executive and Legislative Branches of this government. Let the general good  be our yardstick on every great issue of our time.  
1955-55	1955	Our efforts to defend our freedom and to secure a just peace are, of  course, inseparable from the second great purpose of our government: to  help maintain a strong, growing economy--an economy vigorous and free, in  which there are ever-increasing opportunities, just rewards for effort, and  a stable prosperity that is widely shared.  
1955-56	1955	In the past two years, many important governmental Actions helped our  economy adjust to conditions of peace; these and other actions created a  climate for renewed economic growth. Controls were removed from wages,  prices and materials. Tax revisions encouraged increased private spending  and employment. Federal expenditures were sharply reduced, making possible  a record tax cut. These actions, together with flexible monetary and debt  management policies, helped to halt inflation and stabilize the value of  the dollar. A program of cooperation and partnership in resource  development was begun. Social security and unemployment insurance laws were  broadened and strengthened. New laws started the long process of balancing  farm production with farm markets. Expanded shipbuilding and stockpiling  programs strengthened key sectors of the economy, while improving our  mobilization base. A comprehensive new housing law brought impressive  progress in an area fundamental to our economic strength and closed  loopholes in the old laws permitting dishonest manipulation. Many of these  programs are just beginning to exert their main stimulating effect upon the  economy generally and upon specific communities and industries throughout  the country.  
1955-57	1955	The past year--1954--was one of the most prosperous years in our history.  Business activity now surges with new strength. Production is rising.  Employment is high. Toward the end of last year average weekly wages in  manufacturing were higher than ever before. Personal income after taxes is  at a record level. So is consumer spending. Construction activity is  reaching new peaks. Export demand for our goods is strong. State and local  government expenditures on public works are rising. Savings are high, and  credit is readily available.  
1955-58	1955	So, today, the transition to a peacetime economy is largely behind us.  
1955-59	1955	The economic outlook is good.  
1955-60	1955	The many promising factors I have mentioned do not guarantee sustained  economic expansion; however, they do give us a strong position from which  to carry forward our economic growth. If we as a people act wisely, within  ten years our annual national output can rise from its present level of  about $360 billion to $500 billion, measured in dollars of stable buying  power.  
1955-61	1955	My Budget Message on January 17, the Economic Report on the 20th of this  month, and several special messages will set forth in detail major programs  to foster the growth of our economy and to protect the integrity of the  people's money. Today I shall discuss these programs only in general  terms.  
1955-62	1955	Government efficiency and economy remain essential to steady progress  toward a balanced budget. More than ten billion dollars were cut from the  spending program proposed in the budget of January 9, 1953. Expenditures of  that year were six and a half billion below those of the previous year. In  the current fiscal year, government spending will be nearly four and a half  billion dollars less than in the fiscal year which ended last June 30. New  spending authority has been held below expenditures, reducing government  obligations accumulated over the years.  
1955-63	1955	Last year we had a large tax cut and, for the first time in seventy-five  years a basic revision of Federal tax laws. It is now clear that defense  and other essential government costs must remain at a level precluding  further tax reductions this year. Although excise and corporation income  taxes must, therefore, be continued at their present rates, further tax  cuts will be possible when justified by lower expenditures and by revenue  increases arising from the nation's economic growth. I am hopeful that such  reductions can be made next year.  
1955-64	1955	At the foundation of our economic growth are the raw materials and energy  produced from our minerals and fuels, lands and forests, and water  resources. With respect to them, I believe that the nation must adhere to  three fundamental policies: first, to develop, wisely use and conserve  basic resources from generation to generation; second, to follow the  historic pattern of developing these resources primarily by private  citizens under fair provisions of law, including restraints for proper  conservation; and third, to treat resource development as a partnership  undertaking--a partnership in which the participation of private citizens  and State and local governments is as necessary as Federal participation.  
1955-65	1955	This policy of partnership and cooperation is producing good results, most  immediately noticeable in respect to water resources. First, it has  encouraged local public bodies and private citizens to plan their own power  sources. Increasing numbers of applications to the Federal Power Commission  to conduct surveys and prepare plans for power development, notably in the  Columbia River Basin, are evidence of local response.  
1955-66	1955	Second, the Federal Government and local and private organizations have  been encouraged to coordinate their developments. This is important because  Federal hydroelectric developments supply but a small fraction of the  nation's power needs. Such partnership projects as Priest Rapids in  Washington, the Coosa River development in Alabama, and Markham Ferry in  Oklahoma already have the approval of the Congress. This year justifiable  projects of a similar nature will again have Administration support.  
1955-67	1955	Third, the Federal Government must shoulder its own partnership obligations  by undertaking projects of such complexity and size that their success  requires Federal development. In keeping with this principle, I again urge  the Congress to approve the development of the Upper Colorado River Basin  to conserve and assure better use of precious water essential to the future  of the West.  
1955-68	1955	In addition, the 1956 budget will recommend appropriations to start six new  reclamation and more than thirty new Corps of Engineers projects of varying  size. Going projects and investigations of potential new resource  developments will be continued.  
1955-69	1955	Although this partnership approach is producing encouraging results, its  full success requires a nation-wide comprehensive water resources policy  firmly based in law. Such a policy is under preparation and when completed  will be submitted to the Congress.  
1955-70	1955	In the interest of their proper conservation, development and use,  continued vigilance will be maintained over our fisheries, wildlife  resources, the national parks and forests, and the public lands; and we  shall continue to encourage an orderly development of the nation's mineral  resources.  
1955-71	1955	A modern, efficient highway system is essential to meet the needs of our  growing population, our expanding economy, and our national security. We  are accelerating our highway improvement program as rapidly as possible  under existing State and Federal laws and authorizations. However, this  effort will not in itself assure our people of an adequate highway system.  On my recommendation, this problem has been carefully considered by the  Conference of State Governors and by a special Advisory Committee on a  National Highway Program, composed of leading private citizens. I have  received the recommendations of the Governors' Conference and will shortly  receive the views of the special Advisory Committee. Aided by their  findings, I shall submit on January 27th detailed recommendations which  will meet our most pressing national highway needs.  
1955-72	1955	In further recognition of the importance of transportation to our economic  strength and security, the Administration, through a Cabinet committee, is  thoroughly examining existing Federal transportation policies to determine  their effect on the adequacy of transportation services. This is the first  such comprehensive review directly undertaken by the Executive Branch of  the government in modern times. We are not only examining major problems  facing the various modes of transport; we are also studying closely the  inter-relationships of civilian and government requirements for  transportation. Legislation will be recommended to correct policy  deficiencies which we may find.  
1955-73	1955	The nation's public works activities are tremendous in scope. It is  expected that more than $ 12 billion will be expended in 1955 for the  development of land, water and other resources; control of floods, and  navigation and harbor improvements; construction of roads, schools, and  municipal water supplies, and disposal of domestic and industrial wastes.  Many of the Federal, State and local agencies responsible for this work  are, in their separate capacities, highly efficient. But public works  activities are closely inter-related and have a substantial influence on  the growth of the country. Moreover, in times of threatening economic  contraction, they may become a valuable sustaining force. To these ends,  efficient planning and execution of the nation's public works require both  the coordination of Federal activities and effective cooperation with State  and local governments.  
1955-74	1955	The Council of Economic Advisers, through its public works planning  section, has made important advances during the past year in effecting this  coordination and cooperation. In view of the success of these initial  efforts, and to give more emphasis and continuity to this essential  coordination, I shall request the Congress to appropriate funds for the  support of an Office of Coordinator of Public Works in the Executive Office  of the President.  
1955-75	1955	A most significant element in our growing economy is an agriculture that is  stable, prosperous and free. The problems of our agriculture have evolved  over many years and cannot be solved overnight; nevertheless, governmental  actions last year hold great promise of fostering a better balance between  production and markets and, consequently, a better and more stable income  for our farmers.  
1955-76	1955	Through vigorous administration and through new authority provided by the  83rd Congress, surplus farm products are now moving into consumption. From  February 1953 through November 1954, the rate of increase of  government-held surpluses has been reduced by our moving into use more than  2.3 billion dollars' worth of government-owned farm commodities; this  amount is equal to more than seven percent of a year's production of all  our farms and ranches. Domestic consumption remains high, and farm exports  will be higher than last year. As a result of the flexibility provided by  the Agricultural Act of 1954, we can move toward less restrictive acreage  controls.  
1955-77	1955	Thus, farm production is gradually adjusting to markets, markets are being  expanded, and stocks are moving into use. We can now look forward to an  easing of the influences depressing farm prices, to reduced government  expenditures for purchase of surplus products, and to less Federal  intrusion into the lives and plans of our farm people. Agricultural  programs have been redirected toward better balance, greater stability and  sustained prosperity. We are headed in the right direction. I urgently  recommend to the Congress that we continue resolutely on this road.  
1955-78	1955	Greater attention must be directed to the needs of low-income farm  families. Twenty-eight per cent of our farm-operator families have net cash  incomes of less than $1,000 per year. Last year, at my request, careful  studies were made of the problems of these farm people. I shall later  submit recommendations designed to assure the steady alleviation of their  most pressing concerns.  
1955-79	1955	Because drought also remains a serious agricultural problem, I shall  recommend legislation to strengthen Federal disaster assistance programs.  This legislation will prescribe an improved appraisal of need, better  adjustment of the various programs to local conditions, and a more  equitable sharing of costs between the States and the Federal Government.  
1955-80	1955	The prosperity of our small business enterprises is an indispensable  element in the maintenance of our economic strength. Creation of the Small  Business Administration and recently enacted tax laws facilitating small  business expansion are but two of many important steps we have taken to  encourage our smaller enterprises. I recommend that the Congress extend the  Small Business Act of 1953 which is due to expire next June.  
1955-81	1955	We come now to the third great purpose of our government-its concern for  the health, productivity and well-being of all our people.  
1955-82	1955	Every citizen wants to give full expression to his God-given talents and  abilities and to have the recognition and respect accorded under our  religious and political traditions. Americans also want a good material  standard of living--not simply to accumulate possessions, but to fulfill a  legitimate aspiration for an environment in which their families may live  meaningful and happy lives. Our people are committed, therefore, to the  creation and preservation of opportunity for every citizen to lead a more  rewarding life. They are equally committed to the alleviation of misfortune  and distress among their fellow citizens.  
1955-83	1955	The aspirations of most of our people can best be fulfilled through their  own enterprise and initiative, without government interference. This  Administration, therefore, follows two simple rules: first, the Federal  Government should perform an essential task only when it cannot otherwise  be adequately performed; and second, in performing that task, our  government must not impair the self-respect, freedom and incentive of the  individual. So long as these two rules are observed, the government can  fully meet its obligation without creating a dependent population or a  domineering bureaucracy.  
1955-84	1955	During the past two years, notable advances were made in these functions of  government. Protection of old-age and survivors' insurance was extended to  an additional ten million of our people, and the benefits were  substantially increased. Legislation was enacted to provide unemployment  insurance protection to some four million additional Americans.  Stabilization of living costs and the halting of inflation protected the  value of pensions and savings. A broad program now helps to bring good  homes within the reach of the great majority of our people. With the  States, we are providing rehabilitation facilities and more clinics,  hospitals, and nursing homes for patients with chronic illnesses. Also with  the States, we have begun a great and fruitful expansion in the restoration  of disabled persons to employment and useful lives. In the areas of Federal  responsibility, we have made historic progress in eliminating from among  our people demeaning practices based on race or color.  
1955-85	1955	All of us may be proud of these achievements during the past two years. Yet  essential Federal tasks remain to be done.  
1955-86	1955	As part of our efforts to provide decent, safe and sanitary housing for  low-income families, we must carry forward the housing program authorized  during the 83rd Congress. We must also authorize contracts for a firm  program of 35,000 additional public housing units in each of the next two  fiscal years. This program will meet the most pressing obligations of the  Federal Government into the 1958 fiscal year for planning and building  public housing. By that time the private building industry, aided by the  Housing Act of 1954, will have had the opportunity to assume its full role  in providing adequate housing for our low income families.  
1955-87	1955	The health of our people is one of our most precious assets. Preventable  sickness should be prevented; knowledge available to combat disease and  disability should be fully used. Otherwise, we as a people are guilty not  only of neglect of human suffering but also of wasting our national  strength.  
1955-88	1955	Constant advances in medical care are not available to enough of our  citizens. Clearly our nation must do more to reduce the impact of accident  and disease. Two fundamental problems confront us: first, high and  ever-rising costs of health services; second, serious gaps and shortages in  these services.  
1955-89	1955	By special message on January 24, I shall propose a coordinated program to  strengthen and improve existing health services. This program will continue  to reject socialized medicine. It will emphasize individual and local  responsibility. Under it the Federal Government will neither dominate nor  direct, but serve as a helpful partner. Within this framework, the program  can be broad in scope.  
1955-90	1955	My recommendations will include a Federal health reinsurance service to  encourage the development of more and better voluntary health insurance  coverage by private organizations. I shall also recommend measures to  improve the medical care of that group of our citizens who, because of  need, receive Federal-State public assistance. These two proposals will  help more of our people to meet the costs of health services.  
1955-91	1955	To reduce the gaps in these services, I shall propose:  
1955-92	1955	New measures to facilitate construction of needed health facilities and  help reduce shortages of trained health personnel;  
1955-93	1955	Vigorous steps to combat the misery and national loss involved in mental  illness;  
1955-94	1955	Improved services for crippled children and for maternal and child health;  
1955-95	1955	Better consumer protection under our existing pure food and drug laws; and,  finally,  
1955-96	1955	Strengthened programs to combat the increasingly serious pollution of our  rivers and streams and the growing problem of air pollution.  
1955-97	1955	These measures together constitute a comprehensive program holding rich  promise for better health for all of our people.  
1955-98	1955	Last year's expansion of social security coverage and our new program of  improved medical care for public assistance recipients together suggest  modification of the formula for Federal sharing in old age assistance  payments. I recommend modification of the formula where such payments will,  in the future, supplement benefits received under the old age and survivors  insurance system.  
1955-99	1955	It is the inalienable right of every person, from childhood on, to have  access to knowledge. In our form of society, this right of the individual  takes on a special meaning, for the education of all our citizens is  imperative to the maintenance and invigoration of America's free  institutions.  
1955-100	1955	Today, we face grave educational problems. Effective and up-to-date  analyses of these problems and their solutions are being carried forward  through the individual State conferences and the White House Conference to  be completed this year.  
1955-101	1955	However, such factors as population growth, additional responsibilities of  schools, and increased and longer school attendance have produced an  unprecedented classroom shortage. This shortage is of immediate concern to  all of our people. Positive, affirmative action must be taken now.  
1955-102	1955	Without impairing in any way the responsibilities of our States,  localities, communities, or families, the Federal government can and should  serve as an effective-catalyst in dealing with this problem. I shall  forward a special message to the Congress on February 15, presenting an  affirmative program dealing with this shortage.  
1955-103	1955	To help the States do a better and more timely job, we must strengthen  their resources for preventing and dealing with juvenile delinquency. I  shall propose Federal legislation to assist the States to promote concerted  action in dealing with this nationwide problem. I shall carry forward the  vigorous efforts of the Administration to improve the international control  of the traffic in narcotics and, in cooperation with State and local  agencies, to combat narcotic addiction in our country.  
1955-104	1955	I should like to speak now of additional matters of importance to all our  people and especially to our wage earners.  
1955-105	1955	During the past year certain industrial changes and the readjustment of the  economy to conditions of peace brought unemployment and other difficulties  to various localities and industries. These problems are engaging our most  earnest attention. But for the overwhelming majority of our working people,  the past year has meant good jobs. Moreover, the earnings and savings of  our wage earners are no longer depreciating in value. Because of  cooperative relations between labor and management, fewer working days were  lost through strikes in 1954 than in any year in the past decade.  
1955-106	1955	The outlook for our wage earners can be made still more promising by  several legislative actions.  
1955-107	1955	First, in the past five years we have had economic growth which will  support an increase in the Federal minimum wage. In the light of present  economic conditions, I recommend its increase to ninety cents an hour. I  also recommend that many others, at present excluded, be given the  protection of a minimum wage.  
1955-108	1955	Second, I renew my recommendation of last year for amendment of the Labor  Management Relations Act of 1947 to further the basic objectives of this  statute. I especially call to the attention of the Congress amendments  dealing with the right of economic strikers to vote in representation  elections and the need for equalizing the obligation under the Act to file  disclaimers of Communist affiliation.  
1955-109	1955	Third, the Administration will propose other important measures including  occupational safety, workmen's compensation for longshoremen and harbor  workers, and the "Eight Hour Laws" applicable to Federal contractors.  Legislation will also be proposed respecting nonoccupational disability  insurance and unemployment compensation in the District of Columbia.  
1955-110	1955	In considering human needs, the Federal Government must take special  responsibility for citizens in its direct employ. On January 11 I shall  propose a pay adjustment plan for civilian employees outside the Postal  Field Service to correct inequities and increase individual pay rates. I  shall also recommend voluntary health insurance on a contributory basis for  Federal employees and their dependents. In keeping with the Group Life  Insurance Act passed in the 83rd Congress, this protection should be  provided on the group insurance principle and purchased from private  facilities. Also on January 11 I shall recommend a modern pay plan,  including pay increases, for postal field employees. As part of this  program, and to carry forward our progress toward elimination of the large  annual postal deficit. I shall renew my request for an increase in postal  rates. Again I urge that in the future the fixing of rates be delegated to  an impartial, independent body.  
1955-111	1955	More adequate training programs to equip career employees of the government  to render improved public service will be recommended, as will improvements  in the laws affecting employees serving on foreign assignments.  
1955-112	1955	Needed improvements in survivor, disability, and retirement benefits for  Federal civilian and military personnel have been extensively considered by  the Committee on Retirement Policy for Federal personnel. The Committee's  proposals would strengthen and improve benefits for our career people in  government, and I endorse their broad objectives. Full contributory  coverage under old-age and survivors' insurance should be made available to  all Federal personnel, just as in private industry. For career military  personnel, the protection of the old-age and survivors' insurance system  would be an important and long-needed addition, especially to their present  unequal and inadequate survivorship protection. The military retirement pay  system should remain separate and unchanged. Certain adjustments in the  present civilian personnel retirement systems will be needed to reflect the  additional protection of old-age and survivors' insurance. However, these  systems also are a basic part of a total compensation and should be  separately and independently retained.  
1955-113	1955	I also urge the Congress to approve a long overdue increase in the salaries  of Members of the Congress and of the Federal judiciary to a level  commensurate with their heavy responsibilities.  
1955-114	1955	Our concern for the individual in our country requires that we consider  several additional problems.  
1955-115	1955	We must continue our program to help our Indian citizens improve their lot  and make their full contribution to national life. Two years ago I advised  the Congress of injustices under existing immigration laws. Through humane  administration, the Department of Justice is doing what it legally can to  alleviate hardships. Clearance of aliens before arrival has been initiated,  and except for criminal offenders, the imprisonment of aliens awaiting  admission or deportation has been stopped. Certain provisions of law,  however, have the effect of compelling action in respect to aliens which  are inequitable in some instances and discriminatory in others. These  provisions should be corrected in this session of the Congress.  
1955-116	1955	As the complex problems of Alaska are resolved, that Territory should  expect to achieve statehood. In the meantime, there is no justification for  deferring the admission to statehood of Hawaii. I again urge approval of  this measure.  
1955-117	1955	We have three splendid opportunities to demonstrate the strength of our  belief in the right of suffrage. First, I again urge that a Constitutional  amendment be submitted to the States to reduce the voting age for Federal  elections. Second, I renew my request that the principle of self-government  be extended and the right of suffrage granted to the citizens of the  District of Columbia. Third, I again recommend that we work with the States  to preserve the voting fights of citizens in the nation's service  overseas.  
1955-118	1955	In our determination to keep faith with those who in the past have met the  highest call of citizenship, we now have under study the system of benefits  for veterans and for surviving dependents of deceased veterans and  servicemen. Studies will be undertaken to determine the need for measures  to ease the readjustment to civilian life of men required to enter the  armed forces for two years of service.  
1955-119	1955	In the advancement of the various activities which will make our  civilization endure and flourish, the Federal Government should do more to  give official recognition to the importance of the arts and other cultural  activities. I shall recommend the establishment of a Federal Advisory  Commission on the Arts within the Department of Health, Education and  Welfare, to advise the Federal Government on ways to encourage artistic  endeavor and appreciation. I shall also propose that awards of merit be  established whereby we can honor our fellow citizens who make great  contribution to the advancement of our civilization.  
1955-120	1955	Every citizen rightly expects efficient and economical administration of  these many government programs I have outlined today. I strongly recommend  extension of the Reorganization Act and the law establishing the Commission  on Intergovernmental Relations, both of which expire this spring. Thus the  Congress will assure continuation of the excellent progress recently made  in improving government organization and administration. In this connection  we are looking forward with great interest to the reports which will soon  be going to the Congress from the Commission on Organization of the  Executive Branch of the Government. I am sure that these studies, made  under the chairmanship of former President Herbert Hoover with the  assistance of more than two hundred distinguished citizens, will be of  great value in paving the way toward more efficiency and economy in the  government.  
1955-121	1955	And now, I return to the point at which I began--the faith of our people.  
1955-122	1955	The many programs here summarized are, I believe, in full keeping with  their needs, interests and aspirations. The obligations upon us are clear:  
1955-123	1955	To labor earnestly, patiently, prayerfully, for peace, for freedom, for  justice, throughout the world;  
1955-124	1955	To keep our economy vigorous and free, that our people may lead fuller,  happier lives;  
1955-125	1955	To advance, not merely by our words but by our acts, the determination of  our government that every citizen shall have opportunity to develop to his  fullest capacity.  
1955-126	1955	As we do these things, before us is a future filled with opportunity and  hope. That future will be ours if in our time we keep alive the patience,  the courage, the confidence in tomorrow, the deep faith, of the millions  who, in years past, made and preserved us this nation.  
1955-127	1955	A decade ago, in the death and desolation of European battlefields, I saw  the courage and resolution, I felt the inspiration, of American youth. In  these young men I felt America's buoyant confidence and irresistible  will-to-do. In them I saw, too, a devout America, humble before God.  
1955-128	1955	And so, I know with all my heart--and I deeply believe that all Americans  know--that, despite the anxieties of this divided world, our faith, and the  cause in which we all believe, will surely prevail.  
1955-129	1955	The address as reported from the floor appears in the Congressional Record  (vol. 101, p. 94).  
1956-1	1956	To the Congress of the United States:  
1956-2	1956	The opening of this new year must arouse in us all grateful thanks to a  kind Providence whose protection has been ever present and whose bounty has  been manifold and abundant. The State of the Union today demonstrates what  can be accomplished under God by a free people; by their vision, their  understanding of national problems, their initiative, their self-reliance,  their capacity for work--and by their willingness to sacrifice whenever  sacrifice is needed.  
1956-3	1956	In the past three years, responding to what our people want their  Government to do, the Congress and the Executive have done much in building  a stronger, better America. There has been broad progress in fostering the  energies of our people, in providing greater opportunity for the  satisfaction of their needs, and in fulfilling their demands for the  strength and security of the Republic.  
1956-4	1956	Our country is at peace. Our security posture commands respect. A spiritual  vigor marks our national life. Our economy, approaching the 400 billion  dollar mark, is at an unparalleled level of prosperity. The national income  is more widely and fairly distributed than ever before. The number of  Americans at work has reached an all-time high. As a people, we are  achieving ever higher standards of living--earning more, producing more,  consuming more, building more and investing more than ever before.  
1956-5	1956	Virtually all sectors of our society are sharing in these good times. Our  farm families, if we act wisely, imaginatively and promptly to strengthen  our present farm programs, can also look forward to sharing equitably in  the prosperity they have helped to create.  
1956-6	1956	War in Korea ended two and a half years ago. The collective security system  has been powerfully strengthened. Our defenses have been reinforced at  sharply reduced costs. Programs to expand world trade and to harness the  atom for the betterment of mankind have been carried forward. Our economy  has been freed from governmental wage and price controls. Inflation has  been halted; the cost of living stabilized.  
1956-7	1956	Government spending has been cut by more than ten billion dollars. Nearly  three hundred thousand positions have been eliminated from the Federal  payroll. Taxes have been substantially reduced. A balanced budget is in  prospect. Social security has been extended to ten million more Americans  and unemployment insurance to four million more. Unprecedented advances in  civil rights have been made. The long-standing and deep-seated problems of  agriculture have been forthrightly attacked.  
1956-8	1956	This record of progress has been accomplished with a self imposed caution  against unnecessary and unwise interference in the private affairs of our  people, of their communities and of the several States.  
1956-9	1956	If we of the Executive and Legislative Branches, keeping this caution ever  in mind, address ourselves to the business of the year before us--and to  the unfinished business of last year--with resolution, the outlook is  bright with promise.  
1956-10	1956	Many measures of great national importance recommended last year to the  Congress still demand immediate attention legislation for school and  highway construction; health and immigration legislation; water resources  legislation; legislation to complete the implementation of our foreign  economic policy; such labor legislation as amendments of the  Labor-Management Relations Act, extension of the Fair Labor Standards Act  to additional groups not now covered, and occupational safety legislation;  and legislation for construction of an atomic-powered exhibit vessel.  
1956-11	1956	Many new items of business likewise require our attention-measures that  will further promote the release of the energies of our people; that will  broaden opportunity for all of them; that will advance the Republic in its  leadership toward a just peace; measures, in short, that are essential to  the building of an everstronger, ever-better America.  
1956-12	1956	Every political and economic guide supports a valid confidence that wise  effort will be rewarded by an even more plentiful harvest of human benefit  than we now enjoy. Our resources are too many, our principles too dynamic,  our purposes too worthy and the issues at stake too immense for us to  entertain doubt or fear. But our responsibilities require that we approach  this year's business with a sober humility.  
1956-13	1956	A heedless pride in our present strength and position would blind us to the  facts of the past, to the pitfalls of the future. We must walk ever in the  knowledge that we are enriched by a heritage earned in the labor and  sacrifice of our forebears; that, for our children's children, we are  trustees of a great Republic and a time-tested political system; that we  prosper as a cooperating member of the family of nations.  
1956-14	1956	In this light the Administration has continued work on its program for the  Republic, begun three years ago. Because the vast spread of national and  human interests is involved within it, I shall not in this Message attempt  its detailed delineation. Instead, from time to time during this Session,  there will be submitted to the Congress specific recommendations within  specific fields. In the comprehensive survey required for their  preparation, the Administration is guided by enduring objectives. The first  is:  
1956-15	1956	THE DISCHARGE OF OUR WORLD RESPONSIBILITY  
1956-16	1956	Our world policy and our actions are dedicated to the achievement of peace  with justice for all nations.  
1956-17	1956	With this purpose, we move in a wide variety of ways and through many  agencies to remove the pall of fear; to strengthen the ties with our  partners and to improve the cooperative cohesion of the free world; to  reduce the burden of armaments, and to stimulate and inspire action among  all nations for a world of justice and prosperity and peace. These national  objectives are fully supported by both our political parties.  
1956-18	1956	In the past year, our search for a more stable and just peace has taken  varied forms. Among the most important were the two Conferences at Geneva,  in July and in the fall of last year. We explored the possibilities of  agreement on critical issues that jeopardize the peace.  
1956-19	1956	The July meeting of Heads of Government held out promise to the world of  moderation in the bitterness, of word and action, which tends to generate  conflict and war. All were in agreement that a nuclear war would be an  intolerable disaster which must not be permitted to occur. But in October,  when the Foreign Ministers met again, the results demonstrated conclusively  that the Soviet leaders are not yet willing to create the indispensable  conditions for a secure and lasting peace.  
1956-20	1956	Nevertheless, it is clear that the conflict between international communism  and freedom has taken on a new complexion.  
1956-21	1956	We know the Communist leaders have often practiced the tactics of retreat  and zigzag. We know that Soviet and Chinese communism still poses a serious  threat to the free world. And in the Middle East recent Soviet moves are  hardly compatible with the reduction of international tension.  
1956-22	1956	Yet Communist tactics against the free nations have shifted in emphasis  from reliance on violence and the threat of violence to reliance on  division, enticement and duplicity. We must be well prepared to meet the  current tactics which pose a dangerous though less obvious threat. At the  same time, our policy must be dynamic as well as flexible, designed  primarily to forward the achievement of our own objectives rather than to  meet each shift and change on the Communist front. We must act in the firm  assurance that the fruits of freedom are more attractive and desirable to  mankind in the pursuit of happiness than the record of Communism.  
1956-23	1956	In the face of Communist military power, we must, of course, continue to  maintain an effective system of collective security. This involves two  things--a system which gives clear warning that armed aggression will be  met by joint action of the free nations, and deterrent military power to  make that warning effective. Moreover, the awesome power of the atom must  be made to serve as a guardian of the free community and of the peace.  
1956-24	1956	In the last year, the free world has seen major gains for the system of  collective security: the accession to the North Atlantic Treaty  Organization and Western European Union of the sovereign Federal German  Republic; the developing cooperation under the Southeast Asia Collective  Defense Treaty; and the formation in the Middle East of the Baghdad Pact  among Turkey, Iraq, Iran, Pakistan and the United Kingdom. In our own  hemisphere, the inter-American system has continued to show its vitality in  maintaining peace and a common approach to world problems. We now have  security pacts with more than 40 other nations.  
1956-25	1956	In the pursuit of our national purposes, we have been steadfast in our  support of the United Nations, now entering its second decade with a wider  membership and ever-increasing influence and usefulness. In the release of  our fifteen fliers from Communist China, an essential prelude was the world  opinion mobilized by the General Assembly, which condemned their  imprisonment and demanded their liberation. The successful Atomic Energy  Conference held in Geneva under United Nations auspices and our Atoms for  Peace program have been practical steps toward the world-wide use of this  new energy source. Our sponsorship of such use has benefited our relations  with other countries. Active negotiations are now in progress to create an  International Agency to foster peaceful uses of atomic energy.  
1956-26	1956	During the past year the crucial problem of disarmament has moved to the  forefront of practical political endeavor. At Geneva, I declared the  readiness of the United States to exchange blueprints of the military  establishments of our nation and the USSR, to be confirmed by reciprocal  aerial reconnaissance. By this means, I felt mutual suspicions could be  allayed and an atmosphere developed in which negotiations looking toward  limitation of arms would have improved chances of success.  
1956-27	1956	In the United Nations Subcommittee on Disarmament last fall, this proposal  was explored and the United States also declared itself willing to include  reciprocal ground inspection of key points. By the overwhelming vote of 56  to 7, the United Nations on December 16 endorsed these proposals and gave  them a top priority. Thereby, the issue is placed squarely before the bar  of world opinion. We shall persevere in seeking a general reduction of  armaments under effective inspection and control which are essential  safeguards to ensure reciprocity and protect the security of all.  
1956-28	1956	In the coming year much remains to be done.  
1956-29	1956	While maintaining our military deterrent, we must intensify our efforts to  achieve a just peace. In Asia we shall continue to give help to nations  struggling to maintain their freedom against the threat of Communist  coercion or subversion. In Europe we shall endeavor to increase not only  the military strength of the North Atlantic Alliance but also its political  cohesion and unity of purpose. We shall give such assistance as is feasible  to the recently renewed effort of Western European nations to achieve a  greater measure of integration, such as in the field of peaceful uses of  atomic energy.  
1956-30	1956	In the Near East we shall spare no effort in seeking to promote a fair  solution of the tragic dispute between the Arab States and Israel, all of  whom we want as our friends. The United States is ready to do its part to  assure enduring peace in that area. We hope that both sides will make the  contributions necessary to achieve that purpose. In Latin America, we shall  continue to cooperate vigorously in trade and other measures designed to  assist economic progress in the area.  
1956-31	1956	Strong economic ties are an essential element in our free world  partnership. Increasing trade and investment help all of us prosper  together. Gratifying progress has been made in this direction, most  recently by the three-year extension of our trade agreements legislation.  
1956-32	1956	I most earnestly request that the Congress approve our membership in the  Organization for Trade Cooperation, which would assist the carrying out of  the General Agreement on Tariffs and Trade to which we have been a party  since 1948. Our membership in the OTC will provide the most effective and  expeditious means for removing discriminations and restrictions against  American exports and in making our trade agreements truly reciprocal.  United States membership in the Organization will evidence our continuing  desire to cooperate in promoting an expanded trade among the free nations.  Thus the Organization, as proposed, is admirably suited to our own  interests and to those of like-minded nations in working for steady  expansion of trade and closer economic cooperation. Being strictly an  administrative entity, the Organization for Trade Cooperation cannot, of  course, alter the control by Congress of the tariff, import, and customs  policies of the United States.  
1956-33	1956	We need to encourage investment overseas by avoiding unfair tax  duplications, and to foster foreign trade by further simplification and  improvement of our customs legislation.  
1956-34	1956	We must sustain and fortify our Mutual Security Program. Because the  conditions of poverty and unrest in less developed areas make their people  a special target of international communism, there is a need to help them  achieve the economic growth and stability necessary to preserve their  independence against communist threats and enticements.  
1956-35	1956	In order that our friends may better achieve the greater strength that is  our common goal, they need assurance of continuity in economic assistance  for development projects and programs which we approve and which require a  period of years for planning and completion. Accordingly, I ask Congress to  grant limited authority to make longer-term commitments for assistance to  such projects, to be fulfilled from appropriations to be made in future  fiscal years.  
1956-36	1956	These various steps will powerfully strengthen the economic foundation of  our foreign policy. Together with constructive action abroad, they will  maintain the present momentum toward general economic progress and vitality  of the free world.  
1956-37	1956	In all things, change is the inexorable law of life. In much of the world  the ferment of change is working strongly; but grave injustices are still  uncorrected. We must not, by any sanction of ours, help to perpetuate these  wrongs. I have particularly in mind the oppressive division of the German  people, the bondage of millions elsewhere, and the exclusion of Japan from  United Nations membership.  
1956-38	1956	We shall keep these injustices in the forefront of human consciousness and  seek to maintain the pressure of world opinion to fight these vast wrongs  in the interest both of justice and secure peace.  
1956-39	1956	Injustice thrives on ignorance. Because an understanding of the truth about  America is one of our most powerful forces, I am recommending a substantial  increase in budgetary support of the United States Information Agency.  
1956-40	1956	The sum of our international effort should be this: the waging of peace,  with as much resourcefulness, with as great a sense of dedication and  urgency, as we have ever mustered in defense of our country in time of war.  In this effort, our weapon is not force. Our weapons are the principles and  ideas embodied in our historic traditions, applied with the same vigor that  in the past made America a living promise of freedom for all mankind.  
1956-41	1956	To accomplish these vital tasks, all of us should be concerned with the  strength, effectiveness and morale .of our State Department and our Foreign  Service.  
1956-42	1956	Another guide in the preparation of the Administration's program is:  
1956-43	1956	THE CONSTANT IMPROVEMENT OF OUR NATIONAL SECURITY  
1956-44	1956	Because peace is the keystone of our national policy, our defense program  emphasizes an effective flexible type of power calculated to deter or  repulse any aggression and to preserve the peace. Short of war, we have  never had military strength better adapted to our needs with improved  readiness for emergency use. The maintenance of this strong military  capability for the indefinite future will continue to call for a large  share of our national budget. Our military programs must meet the needs of  today. To build less would expose the nation to aggression. To build  excessively, under the influence of fear, could defeat our purposes and  impair or destroy the very freedom and economic system our military  defenses are designed to protect.  
1956-45	1956	We have improved the effectiveness and combat readiness of our forces by  developing and making operational new weapons and by integrating the latest  scientific developments, including new atomic weapons, into our military  plans. We continue to push the production of the most modern military  aircraft. The development of long-range missiles has been on an accelerated  basis for some time. We are moving as rapidly as practicable toward  nuclear-powered aircraft and ships. Combat capability, especially in terms  of firepower, has been substantially increased. We have made the  adjustments in personnel permitted by the cessation of the Korean War, the  buildup of our allies and the introduction of new weapons. The services are  all planning realistically on a long-term basis.  
1956-46	1956	To strengthen our continental defenses the United States and Canada, in the  closest cooperation, have substantially augmented early warning networks.  Great progress is being made in extending surveillance of the Arctic, the  Atlantic and the Pacific approaches to North America.  
1956-47	1956	In the last analysis our real strength lies in the caliber of the men and  women in our Armed Forces, active and Reserve. Much has been done to  attract and hold capable military personnel, but more needs to be done.  This year, I renew my request of last year for legislation to provide  proper medical care for military dependents and a more equitable survivors'  benefit program. The Administration will prepare additional recommendations  designed to achieve the same objectives, including career incentives for  medical and dental officers and nurses, and increases in the proportion of  regular officers.  
1956-48	1956	Closely related to the mission of the Defense Department is the task of the  Federal Civil Defense Administration. A particular point of relationship  arises from the fact that the key to civil defense is the expanded  continental defense program, including the distant early warning system.  Our Federal civil defense authorities have made progress in their program,  and now comprehensive studies are being conducted jointly by the Federal  Civil Defense Administration, the States, and critical target cities to  determine the best procedures that can be adopted in case of an atomic  attack. We must strengthen Federal assistance to the States and cities in  devising the most effective common defense.  
1956-49	1956	We have a broad and diversified mobilization base. We have the facilities,  materials, skills and knowledge rapidly to expand the production of things  we need for our defense whenever they are required. But mobilization base  requirements change with changing technology and strategy. We must maintain  flexibility to meet new requirements. I am requesting, therefore, that the  Congress once again extend the Defense Production Act.  
1956-50	1956	Of great importance to our nation's security is a continuing alertness to  internal subversive activity within or without our government. This  Administration will not relax its efforts to deal forthrightly and  vigorously in protection of this government and its citizens against  subversion, at the same time fully protecting the constitutional rights of  all citizens.  
1956-51	1956	A third objective of the Administration is:  
1956-52	1956	FISCAL INTEGRITY  
1956-53	1956	A public office is, indeed, a public trust. None of its aspects is more  demanding than the proper management of the public finances. I refer now  not only to the indispensable virtues of plain honesty and trustworthiness  but also to the prudent, effective and conscientious use of tax money. I  refer also to the attitude of mind that makes efficient and economical  service to the people a watchword in our government.  
1956-54	1956	Over the long term, a balanced budget is a sure index to thrifty  management--in a home, in a business or in the Federal Government. When  achievement of a balanced budget is for long put off in a business or home,  bankruptcy is the result. But in similar circumstances a government resorts  to inflation of the money supply. This inevitably results in depreciation  of the value of the money, and an increase in the cost of living. Every  investment in personal security is threatened by this process of inflation,  and the real values of the people's savings, whether in the form of  insurance, bonds, pension and retirement funds or savings accounts are  thereby shriveled.  
1956-55	1956	We have made long strides these past three years in bringing our Federal  finances under control. The deficit for fiscal year 1953 was almost 9-1/2  billion dollars. Larger deficits seemed certain--deficits which would have  depreciated the value of the dollar and pushed the cost of living still  higher. But government waste and extravagance were searched out.  Nonessential activities were dropped. Government expenses were carefully  scrutinized. Total spending was cut by 14 billion dollars below the amount  planned by the previous Administration for the fiscal year 1954.  
1956-56	1956	This made possible--and it was appropriate in the existing circumstances of  transition to a peacetime economy--the largest tax cut in any year in our  history. Almost 7-1/2 billion dollars were released and every taxpayer in  the country benefited. Almost two-thirds of the savings went directly to  individuals. This tax cut also helped to build up the economy, to make jobs  in industry and to increase the production .of the many things desired to  improve the scale of living for the great majority of Americans.  
1956-57	1956	The strong expansion of the economy, coupled with a constant care for  efficiency in government operations and an alert guard against waste and  duplication, has brought us to a prospective balance between income and  expenditure. This is being done while we continue to strengthen our  military security.  
1956-58	1956	I expect the budget to be in balance during the fiscal year ending June 30,  1956.  
1956-59	1956	I shall propose a balanced budget for the next fiscal year ending June 30,  1957.  
1956-60	1956	But the balance we are seeking cannot be accomplished without the  continuing every-day effort of the Executive and Legislative Branches to  keep expenditures under control. It will also be necessary to continue all  of the present excise taxes without any reduction and the corporation  income taxes at their present rates for another year beyond next April  1st.  
1956-61	1956	It is unquestionably true that our present tax level is very burdensome  and, in the interest of long term and continuous economic growth, should be  reduced when we prudently can. It is essential, in the sound management of  the Government's finances, that we be mindful of our enormous national debt  and of the obligation we have toward future Americans to reduce that debt  whenever we can appropriately do so. Under conditions of high peacetime  prosperity, such as now exist, we can never justify going further into debt  to give ourselves a tax cut at the expense of our children. So, in the  present state of our financial affairs, I earnestly believe that a tax cut  can be deemed justifiable only when it will not unbalance the budget, a  budget which makes provision for some reduction, even though modest, in our  national debt. In this way we can best maintain fiscal integrity.  
1956-62	1956	A fourth aim of our program is:  
1956-63	1956	TO FOSTER A STRONG ECONOMY  
1956-64	1956	Our competitive enterprise system depends on the energy of free human  beings, limited by prudent restraints in law, using free markets to plan,  organize and distribute production, and spurred by the prospect of reward  for successful effort. This system has developed our resources. It has  marvelously expanded our productive capacity. Against the record of all  other economic systems devised through the ages, this competitive system  has proved the most creative user of human skills in the development of  physical resources, and the richest rewarder of human effort.  
1956-65	1956	This is still true in this era when improved living standards and rising  national requirements are accompanied by swift advances in technology and  rapid obsolescence in machines and methods. Typical of these are the  strides made in construction of plants to produce electrical energy from  atomic power and of laboratories and installations for the application of  this new force in industry, agriculture and the healing arts. These  developments make it imperative--to assure effective functioning of our  enterprise system--that the Federal Government concern itself with certain  broad areas of our economic life. Most important of these is:  
1956-66	1956	Agriculture  
1956-67	1956	Our farm people are not sharing as they should in the general prosperity.  They alone of all major groups have seen their incomes decline rather than  rise. They are caught between two millstones--rising production costs and  declining prices. Such harm to a part of the national economy so vitally  important to everyone is of great concern to us all. No other resource is  so indispensable as the land that feeds and clothes us. No group is more  fundamental to our national life than our farmers.  
1956-68	1956	In successful prosecution of the war, the nation called for the utmost  effort of its farmers. Their response was superb, their contribution  unsurpassed. Farmers are not now to be blamed for the mountainous,  price-depressing surpluses produced in response to wartime policies and  laws that were too long continued. War markets are not the markets of  peacetime. Failure to recognize that basic fact by a timely adjustment of  wartime legislation brought its inevitable result in peacetime--surpluses,  lower prices and lower incomes for our farmers.  
1956-69	1956	The dimensions of government responsibility are as broad and complex as the  farm problem itself. We are here concerned not only with our essential  continuing supplies of food and fiber, but also with a way of life. Both  are indispensable to the well-being and strength of the nation.  Consideration of these matters must be above and beyond politics. Our  national farm policy, so vital to the welfare of farm people and all of us,  must not become a field for political warfare. Too much is at stake.  
1956-70	1956	Our farm people expect of us, who have responsibility for their government,  understanding of their problems and the will to help solve them. Our  objective must be to help bring production into balance with existing and  new markets, at prices that yield farmers a return for their work in line  with what other Americans get.  
1956-71	1956	To reach this goal, deep-seated problems must be subjected to a stepped-up  attack. There is no single easy solution. Rather, there must be a  many-sided assault on the stubborn problems of surpluses, prices, costs,  and markets; and a steady, persistent, imaginative advance in the  relationship between farmers and their government.  
1956-72	1956	In a few days, by special message, I shall lay before the Congress my  detailed recommendations for new steps that should be taken promptly to  speed the transition in agriculture and thus assist our farmers to achieve  their fair share of the national income.  
1956-73	1956	Basic to this program will be a new attack on the surplus problem-for even  the best-conceived farm program cannot work under a multi-billion dollar  weight of accumulated stocks.  
1956-74	1956	I shall urge authorization of a soil bank program to alleviate the problem  of diverted acres and an overexpanded agricultural plant. This will include  an acreage reserve to reduce current and accumulated surpluses of crops in  most serious difficulty, and a conservation reserve to achieve other needed  adjustments in the use of agricultural resources. I shall urge measures to  strengthen our surplus disposal activities.  
1956-75	1956	I shall propose measures to strengthen individual commodity programs, to  remove controls where possible, to reduce carryovers, and to stop further  accumulations of surpluses. I shall ask the Congress to provide substantial  new funds for an expanded drive on the research front, to develop new  markets, new crops, and new uses. The Rural Development Program to better  the lot of low-income farm families deserves full Congressional support.  The Great Plains Program must go forward vigorously. Advances on these and  other fronts will pull down the pricedepressing surpluses and raise farm  income.  
1956-76	1956	In this time of testing in agriculture, we should all together, regardless  of party, carry forward resolutely with a sound and forward looking program  on which farm people may confidently depend, now and for years to come.  
1956-77	1956	I shall briefly mention four other subjects directly related to the  well-being of the economy, preliminary to their fuller discussion in the  Economic Report and later communications.  
1956-78	1956	Resources Conservation  
1956-79	1956	I wish to re-emphasize the critical importance of the wise use and  conservation of our great natural resources of land, forests, minerals and  water and their long-range development consistent with our agricultural  policy. Water in particular now plays an increasing role in industrial  processes, in the irrigation of land, in electric power, as well as in  domestic uses. At the same time, it has the potential of damage and  disaster.  
1956-80	1956	A comprehensive legislative program for water conservation will be  submitted to the Congress during the Session. The development of our water  resources cannot be accomplished overnight. The need is such that we must  make faster progress and without delay. Therefore, I strongly recommend  that action be taken at this Session on such wholly Federal projects as the  Colorado River Storage Project and the Fryingpan-Arkansas Project; on the  John Day partnership project, and other projects which provide for  cooperative action between the Federal Government and non-Federal  interests; and on legislation, which makes provision for Federal  participation in small projects under the primary sponsorship of agencies  of State and local government.  
1956-81	1956	During the past year the areas of our National Parks have been expanded,  and new wildlife refuges have been created. The visits of our people to the  Parks have increased much more rapidly than have the facilities to care for  them. The Administration will submit recommendations to provide more  adequate facilities to keep abreast of the increasing interest of our  people in the great outdoors.  
1956-82	1956	Disaster Assistance  
1956-83	1956	A modern community is a complex combination of skills, specialized  buildings, machines, communications and homes. Most importantly, it  involves human lives. Disaster in many forms--by flood, frost, high winds,  for instance--can destroy on a massive scale in a few hours the labor of  many years.  
1956-84	1956	Through the past three years the Administration has repeatedly moved into  action wherever disaster struck. The extent of State participation in  relief activities, however, has been far from uniform and, in many cases,  has been either inadequate or nonexistent. Disaster assistance legislation  requires overhauling and an experimental program of flood-damage  indemnities should be undertaken. The Administration will make detailed  recommendations on these subjects.  
1956-85	1956	Area Redevelopment  
1956-86	1956	We must help deal with the pockets of chronic unemployment that here and  there mar the nation's general industrial prosperity. Economic changes in  recent years have been often so rapid and far-reaching that areas committed  to a single local resource or industrial activity have found themselves  temporarily deprived of their markets and their livelihood.  
1956-87	1956	Such conditions mean severe hardship for thousands of people as the slow  process of adaptation to new circumstances goes on. This process can be  speeded up. Last year I authorized a major study of the problem to find  additional steps to supplement existing programs for the redevelopment of  areas of chronic unemployment. Recommendations will be submitted, designed  to supplement, with Federal technical and loan assistance local efforts to  get on with this vital job. Improving such communities must, of course,  remain the primary responsibility of the people living there and of their  States. But a soundly conceived Federal partnership program can be of real  assistance to them in their efforts.  
1956-88	1956	Highway Legislation.  
1956-89	1956	Legislation to provide a modern, interstate highway system is even more  urgent this year than last, for 12 months have now passed in which we have  fallen further behind in road construction needed for the personal safety,  the general prosperity, the national security of the American people.  During the year, the number of motor vehicles has increased from 58 to 61  million. During the past year over 38,000 persons lost their lives in  highway accidents, while the fearful toll of injuries and property damage  has gone on unabated.  
1956-90	1956	In my message of February 22, 1955, I urged that measures be taken to  complete the vital 40,000 mile interstate system over a period of 10 years  at an estimated Federal cost of approximately 25 billion dollars. No  program was adopted.  
1956-91	1956	If we are ever to solve our mounting traffic problem, the whole interstate  system must be authorized as one project, to be completed approximately  within the specified time. Only in this way can industry efficiently gear  itself to the job ahead. Only in this way can the required planning and  engineering be accomplished without the confusion and waste unavoidable a  piecemeal approach. Furthermore, as I pointed out last year, the pressing  nature of this problem must not lead us to solutions outside the bounds of  sound fiscal management. As in the case of other pressing problems, there  must be an adequate plan of financing. To continue the drastically needed  improvement in other national highway systems, I recommend the continuation  of the Federal Aid Highway Program.  
1956-92	1956	Aside from agriculture and the four subjects specifically mentioned, an  integral part of our efforts to foster a strong and expanding free economy  is keeping open the door of opportunity to new and small enterprises,  checking monopoly, and preserving a competitive environment. In this past  year the steady improvement in the economic health of small business has  reinforced the vitality of our competitive economy. We shall continue to  help small business concerns to obtain access to adequate financing and to  competent counsel on management, production, and marketing problems.  
1956-93	1956	Through measures already taken, opportunities for smallbusiness  participation in government procurement programs, including military  procurement, are greatly improved. The effectiveness of these measures will  become increasingly apparent. We shall continue to make certain that small  business has a fair opportunity to compete and has an economic environment  in which it may prosper.  
1956-94	1956	In my message last year I referred to the appointment of an advisory  committee to appraise and report to me on the deficiencies as well as the  effectiveness of existing Federal transportation policies. I have commended  the fundamental purposes and objectives of the committee's report. I  earnestly recommend that the Congress give prompt attention to the  committee's proposals.  
1956-95	1956	Essential to a prosperous economic environment for all business, small and  large--for agriculture and industry and commerce-is efficiency in  Government. To that end, exhaustive studies of the entire governmental  structure were made by the Commission on Intergovernmental Relations and  the Commission on the Organization of the Executive Branch of the  Government--the reports of these Commissions are now under intensive review  and already in the process of implementation in important areas.  
1956-96	1956	One specific and most vital governmental function merits study and action  by the Congress. As part of our program of promoting efficiency in  Government and getting the fiscal situation in hand, the Post Office  Department in the past three years has been overhauled. Nearly one thousand  new post offices have been provided. Financial practices have been  modernized, and transportation and operating methods are being constantly  improved. A new wage and incentive plan for the half million postal  employees has been established. Never before has the postal system handled  so much mail so quickly and so economically.  
1956-97	1956	The Post Office Department faces two serious problems. First, much of its  physical plant--post offices and other buildings-is obsolete and  inadequate. Many new buildings and the modernization of present ones are  essential if we are to have improved mail service. The second problem is  the Department's fiscal plight. It now faces an annual deficit of one-half  billion dollars.  
1956-98	1956	Recommendations on postal facilities and on additional postal revenues will  be submitted to the Congress.  
1956-99	1956	A final consideration in our program planning is:  
1956-100	1956	THE RESPONSE TO HUMAN CONCERNS  
1956-101	1956	A fundamental belief shines forth in this Republic. We believe in the worth  and dignity of the individual. We know that if we are to govern ourselves  wisely--in the tradition of America--we must have the opportunity to  develop our individual capacities to the utmost.  
1956-102	1956	To fulfill the individual's aspirations in the American way of life, good  education is fundamental. Good education is the outgrowth of good homes,  good communities, good churches, and good schools. Today our schools face  pressing problems--problems which will not yield to swift and easy  solutions, or to any single action. They will yield only to a continuing,  active, formed effort by the people toward achieving better schools.  
1956-103	1956	This kind of effort has been spurred by the thousands of conferences held  in recent months by half a million citizens and educators in all parts of  the country, culminating in the White House Conference on Education. In  that Conference, some two thousand delegates, broadly representative of the  nation, studied together the problems of the nation's schools.  
1956-104	1956	They concluded that the people of the United States must make a greater  effort through their local, State, and Federal Governments to improve the  education of our youth. This expression from the people must now be  translated into action at all levels of government.  
1956-105	1956	So far as the Federal share of responsibility is concerned, I urge that the  Congress move promptly to enact an effective program of Federal assistance  to help erase the existing deficit of school classrooms. Such a program,  which should be limited to a five-year period, must operate to increase  rather than decrease local and State support of schools and to give the  greatest help to the States and localities with the least financial  resources. Federal aid should in no way jeopardize the freedom of local  school systems. There will be presented to the Congress a recommended  program of Federal assistance for school construction.  
1956-106	1956	Such a program should be accompanied by action to increase services to the  nation's schools by the Office of Education and by legislation to provide  continuation of payments to school districts where Federal activities have  impaired the ability of those districts to provide adequate schools.  
1956-107	1956	Under the 1954 Amendments to the old-age and survivors' insurance program,  protection was extended to some 10 million additional workers and benefits  were increased. The system now helps protect 9 out of 10 American workers  and their families against loss of income in old age or on the death of the  breadwinner. The system is sound. It must be kept so. In developing  improvements in the system, we must give the most careful consideration to  population and social trends, and to fiscal requirements. With these  considerations in mind, the Administration will present its recommendations  for further expansion of coverage and other steps which can be taken wisely  at this time.  
1956-108	1956	Other needs in the area of social welfare include increased child welfare  services, extension of the program of aid to dependent children,  intensified attack on juvenile delinquency, and special attention to the  problems of mentally retarded children. The training of more skilled  workers for these fields and the quest for new knowledge through research  in social welfare are essential. Similarly the problems of our aged people  need our attention.  
1956-109	1956	The nation has made dramatic progress in conquering disease--progress of  profound human significance which can be greatly accelerated by an  intensified effort in medical research. A well-supported, well-balanced  program of research, including basic research, can open new frontiers of  knowledge, prevent and relieve suffering, and prolong life. Accordingly I  shall recommend a substantial increase in Federal funds for the support of  such a program. As an integral part of this effort, I shall recommend a new  plan to aid construction of non-Federal medical research and teaching  facilities and to help provide more adequate support for the training of  medical research manpower.  
1956-110	1956	Finally, we must aid in cushioning the heavy and rising costs of illness  and hospitalization to individuals and families. Provision should be made,  by Federal reinsurance or otherwise, to foster extension of voluntary  health insurance coverage to many more persons, especially older persons  and those in rural areas. Plans should be evolved to improve protection  against the costs of prolonged or severe illness. These measures will help  reduce the dollar barrier between many Americans and the benefits of modern  medical care.  
1956-111	1956	The Administration health program will be submitted to the Congress in  detail.  
1956-112	1956	The response of government to human concerns embraces, of course, other  measures of broad public interest, and of special interest to our working  men and women. The need still exists for improvement of the Labor  Management Relations Act. The recommendations I submitted to the Congress  last year take into account not only the interests of labor and management  but also the public welfare. The needed amendments should be enacted  without further delay.  
1956-113	1956	We must also carry forward the job of improving the wagehour law. Last year  I requested the Congress to broaden the coverage of the minimum wage. I  repeat that recommendation, and I pledge the full resources of the  Executive Branch to assist the Congress in finding ways to attain this  goal. Moreover, as requested last year, legislation should be passed to  clarify and strengthen the eight-hour laws for the benefit of workers who  are subject to Federal wage standards on Federal and Federally assisted  construction and other public works.  
1956-114	1956	The Administration will shortly propose legislation to assure adequate  disclosure of the financial affairs of each employee pension and welfare  plan and to afford substantial protection to their beneficiaries in  accordance with the objectives outlined in my message of January 11, 1954.  Occupational safety still demands attention, as I pointed out last year,  and legislation to improve the Longshoremen's and Harbor Workers'  Compensation Act is still needed. The improvement of the District of  Columbia Unemployment Insurance Law and legislation to provide employees in  the District with non-occupational disability insurance are no less  necessary now than 12 months ago. Legislation to apply the principle of  equal pay for equal work without discrimination because of sex is a matter  of simple justice. I earnestly urge the Congress to move swiftly to  implement these needed labor measures.  
1956-115	1956	In the field of human needs, we must carry forward the housing program,  which is contributing so greatly to the well-being of our people and the  prosperity of our economy. Home ownership is now advanced to the point  where almost three of every five families in our cities, towns, and suburbs  own the houses they live in.  
1956-116	1956	For the housing program, most of the legislative authority already exists.  However, a firm program of public housing is essential until the private  building industry has found ways to provide more adequate housing for  low-income families. The Administration will propose authority to contract  for 35 thousand additional public housing units in each of the next 2  fiscal years for communities which will participate in an integrated attack  on slums and blight.  
1956-117	1956	To meet the needs of the growing number of older people, several amendments  to the National Housing Act will be proposed to assist the private  homebuilding industry as well as charitable and non-profit organizations.  
1956-118	1956	With so large a number of the American people desiring to modernize and  improve existing dwellings, I recommend that the Title 1 program for  permanent improvements in the home be liberalized.  
1956-119	1956	I recommend increases in the general FHA mortgage insurance authority; the  extension of the FHA military housing program; an increase in the  authorization for Urban Planning grants; in the special assistance  authority of the Federal National Mortgage Association; and continued  support of the college housing program in a way that will not discourage  private capital from helping to meet the needs of our colleges.  
1956-120	1956	The legislation I have recommended for workers in private industry should  be accompanied by a parallel effort for the welfare of Government  employees. We have accomplished much in this field, including a  contributory life insurance program; equitable pay increases and a fringe  benefits program, covering many needed personnel policy changes, from  improved premium pay to a meaningful incentive award program.  
1956-121	1956	Additional personnel management legislation is needed in this Session. As I  stated last year, an executive pay increase is essential to efficient  governmental management. Such an increase, together with needed adjustments  in the pay for the top career positions, is also necessary to the equitable  completion of the Federal pay program initiated last year. Other  legislation will be proposed, including legislation for prepaid group  health insurance for employees and their dependents and to effect major  improvements in the Civil Service retirement system.  
1956-122	1956	All of us share a continuing concern for those who have served this nation  in the Armed Forces. The Commission on Veterans Pensions is at this time  conducting a study of the entire field of veterans' benefits and will soon  submit proposed improvements.  
1956-123	1956	We are proud of the progress our people have made in the field of civil  rights. In Executive Branch operations throughout the nation, elimination  of discrimination and segregation is all but completed. Progress is also  being made among contractors engaged in furnishing Government services and  requirements. Every citizen now has the opportunity to fit himself for and  to hold a position of responsibility in the service of his country. In the  District of Columbia, through the voluntary cooperation of the people,  discrimination and segregation are disappearing from hotels, theaters,  restaurants and other facilities.  
1956-124	1956	It is disturbing that in some localities allegations persist that Negro  citizens are being deprived of their right to vote and are likewise being  subjected to unwarranted economic pressures. I recommend that the substance  of these charges be thoroughly examined by a Bipartisan Commission created  by the Congress. It is hoped that such a commission will be established  promptly so that it may arrive at findings which can receive early  consideration.  
1956-125	1956	The stature of our leadership in the free world has increased through the  past three years because we have made more progress than ever before in a  similar period to assure our citizens equality in justice, in opportunity  and in civil rights. We must expand this effort on every front. We must  strive to have every person judged and measured by what he is, rather than  by his color, race or religion. There will soon be recommended to the  Congress a program further to advance the efforts of the Government, within  the area of Federal responsibility, to accomplish these objectives.  
1956-126	1956	One particular challenge confronts us. In the Hawaiian Islands, East meets  West. To the Islands, Asia and Europe and the Western Hemisphere, all the  continents, have contributed their peoples and their cultures to display a  unique example of a community that is a successful laboratory in human  brotherhood.  
1956-127	1956	Statehood, supported by the repeatedly expressed desire of the Islands'  people and by our traditions, would be a shining example of the American  way to the entire earth. Consequently, I urgently request this Congress to  grant statehood for Hawaii. Also, in harmony with the provisions I last  year communicated to the Senate and House Committees on Interior and  Insular Affairs, I trust that progress toward statehood for Alaska can be  made in this Session.  
1956-128	1956	Progress is constant toward full integration of our Indian citizens into  normal community life. During the past two years the Administration has  provided school facilities for thousands of Indian children previously  denied this opportunity. We must continue to meet the needs of increased  numbers of Indian children. Provision should also be made for the education  of adult Indians whose schooling in earlier years was neglected.  
1956-129	1956	In keeping with our responsibility of world leadership and in our own self  interest, I again point out to the Congress the urgent need for revision of  the immigration and nationality laws. Our nation has always welcomed  immigrants to our shores. The wisdom of such a policy is clearly shown by  the fact that America has been built by immigrants and the descendants of  immigrants. That policy must be continued realistically with present day  conditions in mind.  
1956-130	1956	I recommend that the number of persons admitted to this country annually be  based not on the 1920 census but on the latest, the 1950 census. Provision  should be made to allow for greater flexibility in the use of quotas so if  one country does not use its share, the vacancies may be made available for  the use of qualified individuals from other countries.  
1956-131	1956	The law should be amended to permit the Secretary of State and the Attorney  General to waive the requirements of fingerprinting on a reciprocal basis  for persons coming to this country for temporary visits. This and other  changes in the law are long overdue and should be taken care of promptly.  Detailed recommendations for revision of the immigration laws will be  submitted to the Congress.  
1956-132	1956	I am happy to report substantial progress in the flow of immigrants under  the Refugee Relief Act of 1953; however, I again request this Congress to  approve without further delay the urgently needed amendments to that act  which I submitted in the last Session. Because of the high prosperity in  Germany and Austria, the number of immigrants from those countries will be  reduced. This will make available thousands of unfilled openings which I  recommend be distributed to Greece and Italy and to escapees from behind  the Iron Curtain.  
1956-133	1956	Once again I ask the Congress to join with me in demonstrating our belief  in the right of suffrage. I renew my request that the principle of  self-government be extended and the right of suffrage granted to the  citizens of the District of Columbia.  
1956-134	1956	To conclude: the vista before us is bright. The march of science, the  expanding economy, the advance in collective security toward a just  peace--in this threefold movement our people are creating new standards by  which the future of the Republic may be judged.  
1956-135	1956	Progress, however, will be realized only as it is more than matched by a  continuing growth in the spiritual strength of the nation. Our dedication  to moral values must be complete in our dealings abroad and in our  relationships among ourselves. We have single-minded devotion to the common  good of America. Never must we forget that this means the well-being, the  prosperity, the security of all Americans in every walk of life.  
1956-136	1956	To the attainment of these objectives, I pledge full energies of the  Administration, as in the Session ahead, it works on a program for  submission to you, the Congress of the United States.  
1957-1	1957	To the Congress of the United States:  
1957-2	1957	I appear before the Congress today to report on the State of the Union and  the relationships of the Union to the other nations of the world. I come  here, firmly convinced that at no time in the history of the Republic have  circumstances more emphatically underscored the need, in all echelons of  government, for vision and wisdom and resolution.  
1957-3	1957	You meet in a season of stress that is testing the fitness of political  systems and the validity of political philosophies. Each stress stems in  part from causes peculiar to itself. But every stress is a reflection of a  universal phenomenon.  
1957-4	1957	In the world today, the surging and understandable tide of nationalism is  marked by widespread revulsion and revolt against tyranny, injustice,  inequality and poverty. As individuals, joined in a common hunger for  freedom, men and women and even children pit their spirit against guns and  tanks. On a larger scale, in an ever more persistent search for the  self-respect of authentic sovereignty and the economic base on which  national independence must rest, peoples sever old ties; seek new  alliances; experiment--sometimes dangerously--in their struggle to satisfy  these human aspirations.  
1957-5	1957	Particularly, in the past year, this tide has changed the pattern of  attitudes and thinking among millions. The changes already accomplished  foreshadow a world transformed by the spirit of freedom. This is no faint  and pious hope. The forces now at work in the minds and hearts of men will  not be spent through many years. In the main, today's expressions of  nationalism are, in spirit, echoes of our forefathers' struggle for  independence.  
1957-6	1957	This Republic cannot be aloof to these events heralding a new epoch in the  affairs of mankind.  
1957-7	1957	Our pledged word, our enlightened self-interest, our character as a Nation  commit us to a high role in world affairs: a role of vigorous leadership,  ready strength, sympathetic understanding.  
1957-8	1957	The State of the Union, at the opening of the 85th Congress continues to  vindicate the wisdom of the principles on which this Republic is rounded.  Proclaimed in the Constitution of the Nation and in many of our historic  documents, and rounded in devout religious convictions, these principles  enunciate:  
1957-9	1957	A vigilant regard for human liberty.  
1957-10	1957	A wise concern for human welfare.  
1957-11	1957	A ceaseless effort for human progress.  
1957-12	1957	Fidelity to these principles, in our relations with other peoples, has won  us new friendships and has increased our opportunity for service within the  family of nations. The appeal of these principles is universal, lighting  fires in the souls of men everywhere. We shall continue to uphold them,  against those who deny them and in counselling with our friends.  
1957-13	1957	At home, the application of these principles to the complex problems of our  national life has brought us to an unprecedented peak in our economic  prosperity and has exemplified in our way of life the enduring human values  of mind and spirit.  
1957-14	1957	Through the past four years these principles have guided the legislative  programs submitted by the Administration to the Congress. As we attempt to  apply them to current events, domestic and foreign, we must take into  account the complex entity that is the United States of America; what  endangers it; what can improve it.  
1957-15	1957	The visible structure is our American economy itself. After more than a  century and a half of constant expansion, it is still rich in a wide  variety of natural resources. It is first among nations in its people's  mastery of industrial skills. It is productive beyond our own needs of many  foodstuffs and industrial products. It is rewarding to all our citizens in  opportunity to earn and to advance in self-realization and in  self-expression. It is fortunate in its wealth of educational and cultural  and religious centers. It is vigorously dynamic in the limitless initiative  and willingness to venture that characterize free enterprise. It is  productive of a widely shared prosperity.  
1957-16	1957	Our economy is strong, expanding, and fundamentally sound. But in any  realistic appraisal, even the optimistic analyst will realize that in a  prosperous period the principal threat to efficient functioning of a free  enterprise system is inflation. We look back on four years of prosperous  activities during which prices, the cost of living, have been relatively  stable--that is, inflation has been held in check. But it is clear that the  danger is always present, particularly if the government might become  profligate in its expenditures or private groups might ignore all the  possible results on our economy of unwise struggles for immediate gain.  
1957-17	1957	This danger requires a firm resolution that the Federal Government shall  utilize only a prudent share of the Nation's resources, that it shall live  within its means, carefully measuring against need alternative proposals  for expenditures.  
1957-18	1957	Through the next four years, I shall continue to insist that the executive  departments and agencies of Government search out additional ways to save  money and manpower. I urge that the Congress be equally watchful in this  matter.  
1957-19	1957	We pledge the Government's share in guarding the integrity of the dollar.  But the Government's efforts cannot be the entire campaign against  inflation, the thief that can rob the individual of the value of the  pension and social security he has earned during his productive life. For  success, Government's efforts must be paralleled by the attitudes and  actions of individual citizens.  
1957-20	1957	I have often spoken of the purpose of this Administration to serve the  national interest of 170 million people. The national interest must take  precedence over temporary advantages which may be secured by particular  groups at the expense of all the people.  
1957-21	1957	In this regard I call on leaders in business and in labor to think well on  their responsibility to the American people. With all elements of our  society, they owe the Nation a vigilant guard against the inflationary  tendencies that are always at work in a dynamic economy operating at  today's high levels. They can powerfully help counteract or accentuate such  tendencies by their wage and price policies.  
1957-22	1957	Business in its pricing policies should avoid unnecessary price increases  especially at a time like the present when demand in so many areas presses  hard on short supplies. A reasonable profit is essential to the new  investments that provide more jobs in an expanding economy. But business  leaders must, in the national interest, studiously avoid those price rises  that are possible only because of vital or unusual needs of the whole  nation.  
1957-23	1957	If our economy is to remain healthy, increases in wages and other labor  benefits, negotiated by labor and management, must be reasonably related to  improvements in productivity. Such increases are beneficial, for they  provide wage earners with greater purchasing power. Except where necessary  to correct obvious injustices, wage increases that outrun productivity,  however, are an inflationary factor. They make for higher prices for the  public generally and impose a particular hardship on those whose welfare  depends on the purchasing power of retirement income and savings. Wage  negotiations should also take cognizance of the right of the public  generally to share in the benefits of improvements in technology.  
1957-24	1957	Freedom has been defined as the opportunity for self-discipline. This  definition has a special application to the areas of wage and price policy  in a free economy. Should we persistently fail to discipline ourselves,  eventually there will be increasing pressure on government to redress the  failure. By that process freedom will step by step disappear. No subject on  the domestic scene should more attract the concern of the friends of  American working men and women and of free business enterprise than the  forces that threaten a steady depreciation of the value of our money.  
1957-25	1957	Concerning developments in another vital sector of our  economy--agriculture--I am gratified that the long slide in farm income has  been halted and that further improvement is in prospect. This is heartening  progress. Three tools that we have developed--improved surplus disposal,  improved price support laws, and the soil bank--are working to reduce  price-depressing government stocks of farm products. Our concern for the  well-being of farm families demands that we constantly search for new ways  by which they can share more fully in our unprecedented prosperity.  Legislative recommendations in the field of agriculture are contained in  the Budget Message.  
1957-26	1957	Our soil, water, mineral, forest, fish, and wildlife resources are being  conserved and improved more effectively. Their conservation and development  are vital to the present and future strength of the Nation. But they must  not be the concern of the Federal Government alone. State and local  entities, and private enterprise should be encouraged to participate in  such projects.  
1957-27	1957	I would like to make special mention of programs for making the best uses  of water, rapidly becoming our most precious natural resource, just as it  can be, when neglected, a destroyer of both life and wealth. There has been  prepared and published a comprehensive water report developed by a Cabinet  Committee and relating to all phases of this particular problem.  
1957-28	1957	In the light of this report, there are two things I believe we should keep  constantly in mind. The first is that each of our great river valleys  should be considered as a whole. Piecemeal operations within each lesser  drainage area can be self-defeating or, at the very least, needlessly  expensive. The second is that the domestic and industrial demands for water  grow far more rapidly than does our population.  
1957-29	1957	The whole matter of making the best use of each drop of water from the  moment it touches our soil until it reaches the oceans, for such purposes  as irrigation, flood control, power production, and domestic and industrial  uses clearly demands the closest kind of cooperation and partnership  between municipalities, States and the Federal Government. Through  partnership of Federal, state and local authorities in these vast projects  we can obtain the economy and efficiency of development and operation that  springs from a lively sense of local responsibility.  
1957-30	1957	Until such partnership is established on a proper and logical basis of  sharing authority, responsibility and costs, our country will never have  both the fully productive use of water that it so obviously needs and  protection against disastrous flood.  
1957-31	1957	If we fail in this, all the many tasks that need to be done in America  could be accomplished only at an excessive cost, by the growth of a  stifling bureaucracy, and eventually with a dangerous degree of centralized  control over our national life.  
1957-32	1957	In all domestic matters, I believe that the people of the United States  will expect of us effective action to remedy past failure in meeting  critical needs.  
1957-33	1957	High priority should be given the school construction bill. This will  benefit children of all races throughout the country-and children of all  races need schools now. A program designed to meet emergency needs for more  classrooms should be enacted without delay. I am hopeful that this program  can be enacted on its own merits, uncomplicated by provisions dealing with  the complex problems of integration. I urge the people in all sections of  the country to approach these problems with calm and reason, with mutual  understanding and good will, and in the American tradition of deep respect  for the orderly processes of law and justice.  
1957-34	1957	I should say here that we have much reason to be proud of the progress our  people are making in mutual understanding--the chief buttress of human and  civil rights. Steadily we are moving closer to the goal of fair and equal  treatment of citizens without regard to race or color. But unhappily much  remains to be done.  
1957-35	1957	Last year the Administration recommended to the Congress a four-point  program to reinforce civil rights. That program included:  
1957-36	1957	(1) creation of a bipartisan commission to investigate asserted violations  of civil rights and to make recommendations;  
1957-37	1957	(2) creation of a civil rights division in the Department of Justice in  charge of an Assistant Attorney General;  
1957-38	1957	(3) enactment by the Congress of new laws to aid in the enforcement of  voting rights; and  
1957-39	1957	(4) amendment of the laws so as to permit the Federal Government to seek  from the civil courts preventive relief in civil rights cases.  
1957-40	1957	I urge that the Congress enact this legislation.  
1957-41	1957	Essential to the stable economic growth we seek is a system of well-adapted  and efficient financial institutions. I believe the time has come to  conduct a broad national inquiry into the nature, performance and adequacy  of our financial system, both in terms of its direct service to the whole  economy and in terms of its function as the mechanism through which  monetary and credit policy takes effect. I believe the Congress should  authorize the creation of a commission of able and qualified citizens to  undertake this vital inquiry. Out of their findings and recommendations the  Administration would develop and present to the Congress any legislative  proposals that might be indicated for the purpose of improving our  financial machinery.  
1957-42	1957	In this message it seems unnecessary that I should repeat recommendations  involving our domestic affairs that have been urged upon the Congress  during the past four years, but which, in some instances, did not reach the  stage of completely satisfactory legislation.  
1957-43	1957	The Administration will, through future messages either directly from me or  from heads of the departments and agencies, transmit to the Congress  specific recommendations. These will involve our financial and fiscal  affairs, our military and civil defenses; the administration of justice;  our agricultural economy; our domestic and foreign commerce; the urgently  needed increase in our postal rates; the development of our natural  resources; our labor laws, including our labor-management relations  legislation, and vital aspects of the health, education and welfare of our  people. There will be special recommendations dealing with such subjects as  atomic energy, the furthering of public works, the continued efforts to  eliminate government competition with the businesses of tax-paying  citizens.  
1957-44	1957	A number of legislative recommendations will be mentioned specifically in  my forthcoming Budget Message, which will reach you within the week. That  message will also recommend such sums as are needed to implement the  proposed action.  
1957-45	1957	Turning to the international scene:  
1957-46	1957	The existence of a strongly armed imperialistic dictatorship poses a  continuing threat to the free world's and thus to our own Nation's security  and peace. There are certain truths to be remembered here.  
1957-47	1957	First, America alone and isolated cannot assure even its own security. We  must be joined by the capability and resolution of nations that have proved  themselves dependable defenders of freedom. Isolation from them invites  war. Our security is also enhanced by the immeasurable interest that joins  us with all peoples who believe that peace with justice must be preserved,  that wars of aggression are crimes against humanity.  
1957-48	1957	Another truth is that our survival in today's world requires modern,  adequate, dependable military strength. Our Nation has made great strides  in assuring a modern defense, so armed in new weapons, so deployed, so  equipped, that today our security force is the most powerful in our  peacetime history. It can punish heavily any enemy who undertakes to attack  us. It is a major deterrent to war.  
1957-49	1957	By our research and development more efficient weapons-some of amazing  capabilities--are being constantly created. These vital efforts we shall  continue. Yet we must not delude ourselves that safety necessarily  increases as expenditures for military research or forces in being go up.  Indeed, beyond a wise and reasonable level, which is always changing and is  under constant study, money spent on arms may be money wasted on sterile  metal or inflated costs, thereby weakening the very security and strength  we seek.  
1957-50	1957	National security requires far more than military power. Economic and moral  factors play indispensable roles. Any program that endangers our economy  could defeat us. Any weakening of our national will and resolution, any  diminution of the vigor and initiative of our individual citizens, would  strike a blow at the heart of our defenses.  
1957-51	1957	The finest military establishment we can produce must work closely in  cooperation with the forces of our friends. Our system of regional pacts,  developed within the Charter of the United Nations, serves to increase both  our own security and the security of other nations.  
1957-52	1957	This system is still a recent introduction on the world scene. Its problems  are many and difficult, because it insists on equality among its members  and brings into association some nations traditionally divided. Repeatedly  in recent months, the collapse of these regional alliances has been  predicted. The strains upon them have been at times indeed severe. Despite  these strains our regional alliances have proved durable and strong, and  dire predictions of their disintegration have proved completely false.  
1957-53	1957	With other free nations, we should vigorously prosecute measures that will  promote mutual strength, prosperity and welfare within the free world.  Strength is essentially a product of economic health and social well-being.  Consequently, even as we continue our programs of military assistance, we  must emphasize aid to our friends in building more productive economies and  in better satisfying the natural demands of their people for progress.  Thereby we shall move a long way toward a peaceful world.  
1957-54	1957	A sound and safeguarded agreement for open skies, unarmed aerial sentinels,  and reduced armament would provide a valuable contribution toward a durable  peace in the years ahead. And we have been persistent in our effort to  reach such an agreement. We are willing to enter any reliable agreement  which would reverse the trend toward ever more devastating nuclear weapons;  reciprocally provide against the possibility of surprise attack; mutually  control the outer space missile and satellite development; and make  feasible a lower level of armaments and armed forces and an easier burden  of military expenditures. Our continuing negotiations in this field are a  major part of our quest for a confident peace in this atomic age.  
1957-55	1957	This quest requires as well a constructive attitude among all the nations  of the free world toward expansion of trade and investment, that can give  all of us opportunity to work out economic betterment.  
1957-56	1957	An essential step in this field is the provision of an administrative  agency to insure the orderly and proper operation of existing arrangements  trader which multilateral trade is now carried on. To that end I urge  Congressional authorization for United States membership in the proposed  Organization for Trade Cooperation, an action which will speed removal of  discrimination against our export trade.  
1957-57	1957	We welcome the efforts of a number of our European friends to achieve an  integrated community to develop a common market. We likewise welcome their  cooperative effort in the field of atomic energy.  
1957-58	1957	To demonstrate once again our unalterable purpose to make of the atom a  peaceful servant of humanity, I shortly shall ask the Congress to authorize  full United States participation in the International Atomic Energy  Agency.  
1957-59	1957	World events have magnified both the responsibilities and the opportunities  of the United States Information Agency. Just as, in recent months, the  voice of communism has become more shaken and confused, the voice of truth  must be more clearly heard. To enable our Information Agency to cope with  these new responsibilities and opportunities, I am asking the Congress to  increase appreciably the appropriations for this program and for  legislation establishing a career service for the Agency's overseas foreign  service officers.  
1957-60	1957	The recent historic events in Hungary demand that all free nations share to  the extent of their capabilities in the responsibility of granting asylum  to victims of Communist persecution. I request the Congress promptly to  enact legislation to regularize the status in the United States of  Hungarian refugees brought here as parolees. I shall shortly recommend to  the Congress by special message the changes in our immigration laws that I  deem necessary in the light of our world responsibilities.  
1957-61	1957	The cost of peace is something we must face boldly, fearlessly. Beyond  money, it involves changes in attitudes, the renunciation of old  prejudices, even the sacrifice of some seeming self-interest.  
1957-62	1957	Only five days ago I expressed to you the grave concern of your Government  over the threat of Soviet aggression in the Middle East. I asked for  Congressional authorization to help counter this threat. I say again that  this matter is of vital and immediate importance to the Nation's and the  free world's security and peace. By our proposed programs in the Middle  East, we hope to assist in establishing a climate in which constructive and  long-term solutions to basic problems of the area may be sought.  
1957-63	1957	From time to time, there will be presented to the Congress requests for  other legislation in the broad field of international affairs. All requests  will reflect the steadfast purpose of this Administration to pursue peace,  based on justice. Although in some cases details will be new, the  underlying purpose and objectives will remain the same.  
1957-64	1957	All proposals made by the Administration in this field are based on the  free world's unity. This unity may not be immediately obvious unless we  examine link by link the chain of relationships that binds us to every area  and to every nation. In spirit the free world is one because its people  uphold the right of independent existence for all nations. I have already  alluded to their economic interdependence. But their interdependence  extends also into the field of security.  
1957-65	1957	First of all, no reasonable man will question the absolute need for our  American neighbors to be prosperous and secure. Their security and  prosperity are inextricably bound to our own. And we are, of course,  already joined with these neighbors by historic pledges.  
1957-66	1957	Again, no reasonable man will deny that the freedom and prosperity and  security of Western Europe are vital to our own prosperity and security. If  the institutions, the skills, the manpower of its peoples were to fall  under the domination of an aggressive imperialism, the violent change in  the balance of world power and in the pattern of world commerce could not  be fully compensated for by any American measures, military or economic.  
1957-67	1957	But these people, whose economic strength is largely dependent on free and  uninterrupted movement of oil from the Middle East, cannot prosper--indeed,  their economies would be severely impaired--should that area be controlled  by an enemy and the movement of oil be subject to its decisions.  
1957-68	1957	Next, to the Eastward, are Asiatic and Far Eastern peoples, recently  returned to independent control of their own affairs or now emerging into  sovereign statehood. Their potential strength constitutes new assurance for  stability and peace in the world--if they can retain their independence.  Should they lose freedom and be dominated by an aggressor, the world-wide  effects would imperil the security of the free world.  
1957-69	1957	In short, the world has so shrunk that all free nations are our neighbors.  Without cooperative neighbors, the United States cannot maintain its own  security and welfare, because:  
1957-70	1957	First, America's vital interests are world-wide, embracing both hemispheres  and every continent.  
1957-71	1957	Second, we have community of interest with every nation in the free world.  
1957-72	1957	Third, interdependence of interests requires a decent respect for the  rights and the peace of all peoples.  
1957-73	1957	These principles motivate our actions within the United Nations. There,  before all the world, by our loyalty to them, by our practice of them, let  us strive to set a standard to which all who seek justice and who hunger  for peace can rally.  
1957-74	1957	May we at home, here at the Seat of Government, in all the cities and towns  and farmlands of America, support these principles in a personal effort of  dedication. Thereby each of us can help establish a secure world order in  which opportunity for freedom and justice will be more widespread, and in  which the resources now dissipated on the armaments of war can be released  for the life and growth of all humanity.  
1957-75	1957	When our forefathers prepared the immortal document that proclaimed our  independence, they asserted that every individual is endowed by his Creator  with certain inalienable rights. As we gaze back through history to that  date, it is clear that our nation has striven to live up to this  declaration, applying it to nations as well as to individuals.  
1957-76	1957	Today we proudly assert that the government of the United States is still  committed to this concept, both in its activities at home and abroad.  
1957-77	1957	The purpose is Divine; the implementation is human.  
1957-78	1957	Our country and its government have made mistakes--human mistakes. They  have been of the head--not of the heart. And it is still true that the  great concept of the dignity of all men, alike created in the image of the  Almighty, has been the compass by which we have tried and are trying to  steer our course.  
1957-79	1957	So long as we continue by its guidance, there will be true progress in  human affairs, both among ourselves and among those with whom we deal.  
1957-80	1957	To achieve a more perfect fidelity to it, I submit, is a worthy ambition as  we meet together in these first days of this, the first session of the 85th  Congress.  
1957-81	1957	The Address as reported from the floor appears in the Congressional Record  (vol. 103, p. 387).  
1958-1	1958	Mr. President, Mr. Speaker, Members of the 85th Congress:  
1958-2	1958	It is again my high privilege to extend personal greetings to the members  of the 85th Congress.  
1958-3	1958	All of us realize that, as this new session begins, many Americans are  troubled about recent world developments which they believe may threaten  our nation's safety. Honest men differ in their appraisal of America's  material and intellectual strength, and the dangers that confront us. But  all know these dangers are real.  
1958-4	1958	The purpose of this message is to outline the measures that can give the  American people a confidence--just as real--in their own security.  
1958-5	1958	I am not here to justify the past, gloss over the problems of the present,  or propose easy solutions for the future.  
1958-6	1958	I am here to state what I believe to be right and what I believe to be  wrong; and to propose action for correcting what I think wrong! I.  
1958-7	1958	There are two tasks confronting us that so far outweigh all other that I  shall devote this year's message entirely to them. The first is to ensure  our safety through strength.  
1958-8	1958	As to our strength, I have repeatedly voiced this conviction: We now have a  broadly based and efficient defensive strength, including a great deterrent  power, which is, for the present, our main guarantee against war; but,  unless we act wisely and promptly, we could lose that capacity to deter  attack or defend ourselves.  
1958-9	1958	My profoundest conviction is that the American people will say, as one man:  No matter what the exertions or sacrifices, we shall maintain that  necessary strength!  
1958-10	1958	But we could make no more tragic mistake than merely to concentrate on  military strength.  
1958-11	1958	For if we did only this, the future would hold nothing for the world but an  Age of Terror.  
1958-12	1958	And so our second task is to do the constructive work of building a genuine  peace. We must never become so preoccupied with our desire for military  strength that we neglect those areas of economic development, trade,  diplomacy, education, ideas and principles where the foundations of real  peace must be laid. II.  
1958-13	1958	The threat to our safety, and to the hope of a peaceful world, can be  simply stated. It is communist imperialism.  
1958-14	1958	This threat is not something imagined by critics of the Soviets. Soviet  spokesmen, from the beginning, have publicly and frequently declared their  aim to expand their power, one way or another, throughout the world.  
1958-15	1958	The threat has become increasingly serious as this expansionist aim has  been reinforced by an advancing industrial, military and scientific  establishment.  
1958-16	1958	But what makes the Soviet threat unique in history is its  all--inclusiveness. Every human activity is pressed into service as a  weapon of expansion. Trade, economic development, military power, arts,  science, education, the whole world of ideas--all are harnessed to this  same chariot of expansion.  
1958-17	1958	The Soviets are, in short, waging total cold war.  
1958-18	1958	The only answer to a regime that wages total cold war is to wage total  peace.  
1958-19	1958	This means bringing to bear every asset of our personal and national lives  upon the task of building the conditions in which security and peace can  grow. III.  
1958-20	1958	Among our assets, let us first briefly glance at our military power.  
1958-21	1958	Military power serves the cause of security by making prohibitive the cost  of any aggressive attack.  
1958-22	1958	It serves the cause of peace by holding up a shield behind which the  patient constructive work of peace can go on.  
1958-23	1958	But it can serve neither cause if we make either of two mistakes. The one  would be to overestimate our strength, and thus neglect crucially important  actions in the period just ahead. The other would be to underestimate our  strength. Thereby we might be tempted to become irresolute in our foreign  relations, to dishearten our friends, and to lose our national poise and  perspective in approaching the complex problems ahead.  
1958-24	1958	Any orderly balance-sheet of military strength must be in two parts. The  first is the position as of today. The second is the position in the period  ahead.  
1958-25	1958	As of today: our defensive shield comprehends a vast complex of ground,  sea, and air units, superbly equipped and strategically deployed around the  world. The most powerful deterrent to war in the world today lies in the  retaliatory power of our Strategic Air Command and the aircraft of our  Navy. They present to any potential attacker who would unleash war upon the  world the prospect of virtual annihilation of his own country.  
1958-26	1958	Even if we assume a surprise attack on our bases, with a marked reduction  in our striking power, our bombers would immediately be on their way in  sufficient strength to accomplish this mission of retaliation. Every  informed government knows this. It is no secret.  
1958-27	1958	Since the Korean Armistice, the American people have spent $225 billion in  maintaining and strengthening this overall defensive shield. This is the  position as of today.  
1958-28	1958	Now as to the period ahead: Every part of our military establishment must  and will be equipped to do its defensive job with the most modern weapons  and methods. But it is particularly important to our planning that we make  a candid estimate of the effect of long-range ballistic missiles on the  present deterrent power I have described.  
1958-29	1958	At this moment, the consensus of opinion is that we are probably somewhat  behind the Soviets in some areas of long-range ballistic missile  development. But it is my conviction, based on close study of all relevant  intelligence, that if we make the necessary effort, we will have the  missiles, in the needed quantity and in time, to sustain and strengthen the  deterrent power of our increasingly efficient bombers. One encouraging fact  evidencing this ability is the rate of progress we have achieved since we  began to concentrate on these missiles.  
1958-30	1958	The intermediate ballistic missiles, Thor and Jupiter, have already been  ordered into production. The parallel progress in the intercontinental  ballistic missile effort will be advanced by our plans for acceleration.  The development of the submarine-based Polaris missile system has  progressed so well that its future procurement schedules are being moved  forward markedly.  
1958-31	1958	When it is remembered that our country has concentrated on the development  of ballistic missiles for only about a third as long as the Soviets, these  achievements show a rate of progress that speaks for itself. Only a brief  time back, we were spending at the rate of only about one million dollars a  year on long range ballistic missiles. In 1957 we spent more than one  billion dollars on the Arias, Titan, Thor, Jupiter, and Polaris programs  alone.  
1958-32	1958	But I repeat, gratifying though this rate of progress is, we must still do  more!  
1958-33	1958	Our real problem, then, is not our strength today; it is rather the vital  necessity of action today to ensure our strength tomorrow.  
1958-34	1958	What I have just said applies to our strength as a single country. But we  are not alone. I have returned from the recent NATO meeting with renewed  conviction that, because we are a part of a world-wide community of free  and peaceful nations, our own security is immeasurably increased.  
1958-35	1958	By contrast, the Soviet Union has surrounded itself with captive and sullen  nations. Like a crack in the crust of an uneasily sleeping volcano, the  Hungarian uprising revealed the depth and intensity of the patriotic  longing for liberty that still burns within these countries.  
1958-36	1958	The world thinks of us as a country which is strong, but which will never  start a war. The world also thinks of us as a land which has never enslaved  anyone and which is animated by humane ideals. This friendship, based on  common ideals, is one of our greatest sources of strength.  
1958-37	1958	It cements into a cohesive security arrangement the aggregate of the  spiritual, military and economic strength of all those nations which, with  us, are allied by treaties and agreements.  
1958-38	1958	Up to this point, I have talked solely about our military strength to deter  a possible future war.  
1958-39	1958	I now want to talk about the strength we need to win a different kind of  war--one that has already been launched against us.  
1958-40	1958	It is the massive economic offensive that has been mounted by the communist  imperialists against free nations.  
1958-41	1958	The communist imperialist regimes have for some time been largely  frustrated in their attempts at expansion based directly on force. As a  result, they have begun to concentrate heavily on economic penetration,  particularly of newly-developing countries, as a preliminary to political  domination.  
1958-42	1958	This non-military drive, if underestimated, could defeat the free world  regardless of our military strength. This danger is all the greater  precisely because many of us fail or refuse to recognize it. Thus, some  people may be tempted to finance our extra military effort by cutting  economic assistance. But at the very time when the economic threat is  assuming menacing proportions, to fail to strengthen our own effort would  be nothing less than reckless folly!  
1958-43	1958	Admittedly, most of us did not anticipate the psychological impact upon the  world of the launching of the first earth satellite. Let us not make the  same kind of mistake in another field, by failing to anticipate the much  more serious impact of the Soviet economic offensive.  
1958-44	1958	As with our military potential, our economic assets are more than equal to  the task. Our independent farmers produce an abundance of food and fibre.  Our free workers are versatile, intelligent, and hardworking. Our  businessmen are imaginative and resourceful. The productivity, the  adaptability of the American economy is the solid foundation-stone of our  security structure.  
1958-45	1958	We have just concluded another prosperous year. Our output was once more  the greatest in the nation's history. In the latter part of the year, some  decline in employment and output occurred, following the exceptionally  rapid expansion of recent years. In a free economy, reflecting as it does  the independent judgments of millions of people, growth typically moves  forward unevenly. But the basic forces of growth remain unimpaired. There  are solid grounds for confidence that economic growth will be resumed  without an extended interruption. Moreover, the Federal government,  constantly alert to signs of weakening in any part of our economy, always  stands ready, with its full power, to take any appropriate further action  to promote renewed business expansion.  
1958-46	1958	If our history teaches us anything, it is this lesson: so far as the  economic potential of our nation is concerned, the believers in the future  of America have always been the realists. I count myself as one of this  company.  
1958-47	1958	Our long-range problem, then, is not the stamina of our enormous engine of  production. Our problem is to make sure that we use these vast economic  forces confidently and creatively, not only in direct military defense  efforts, but likewise in our foreign policy, through such activities as  mutual economic aid and foreign trade.  
1958-48	1958	In much the same way, we have tremendous potential resources on other  non-military fronts to help in countering the Soviet threat: education,  science, research, and, not least, the ideas and principles by which we  live. And in all these cases the task ahead is to bring these resources  more sharply to bear upon the new tasks of security and peace in a  swiftly-changing world. IV.  
1958-49	1958	There are many items in the Administration's program, of a kind frequently  included in a State of the Union Message, with which I am not dealing  today. They are important to us and to our prosperity. But I am reserving  them for treatment in separate communications because of my purpose today  of speaking only about matters bearing directly upon our security and  peace.  
1958-50	1958	I now place before you an outline of action designed to focus our resources  upon the two tasks of security and peace.  
1958-51	1958	In this special category I list eight items requiring action. They are not  merely desirable. They are imperative.  
1958-52	1958	1. DEFENSE REORGANIZATION  
1958-53	1958	The first need is to assure ourselves that military organization  facilitates rather than hinders the functioning of the military  establishment in maintaining the security of the nation.  
1958-54	1958	Since World War II, the purpose of achieving maximum organizational  efficiency in a modern defense establishment has several times occasioned  action by the Congress and by the Executive.  
1958-55	1958	The advent of revolutionary new devices, bringing with them the problem of  overall continental defense, creates new difficulties, reminiscent of those  attending the advent of the airplane half a century ago.  
1958-56	1958	Some of the important new weapons which technology has produced do not fit  into any existing service pattern. They cut across all services, involve  all services, and transcend all services, at every stage from development  to operation. In some instances they defy classification according to  branch of service.  
1958-57	1958	Unfortunately, the uncertainties resulting from such a situation, and the  jurisdictional disputes attending upon it, tend to bewilder and confuse the  public and create the impression that service differences are damaging the  national interest.  
1958-58	1958	Let us proudly remember that the members of the Armed Forces give their  basic allegiance solely to the United States. Of that fact all of us are  certain. But pride of service and mistaken zeal in promoting particular  doctrine has more than once occasioned the kind of difficulty of which I  have just spoken.  
1958-59	1958	I am not attempting today to pass judgment on the charge of harmful service  rivalries. But one thing is sure. Whatever they are, America wants them  stopped.  
1958-60	1958	Recently I have had under special study the never-ending problem of  efficient organization, complicated as it is by new weapons. Soon my  conclusions will be finalized. I shall promptly take such Executive action  as is necessary and, in a separate message, I shall present appropriate  recommendations to the Congress.  
1958-61	1958	Meanwhile, without anticipating the detailed form that a reorganization  should take, I can state its main lines in terms of objectives:  
1958-62	1958	A major purpose of military organization is to achieve real unity in the  Defense establishment in all the principal features of military activities.  Of all these, one of the most important to our nation's security is  strategic planning and control. This work must be done under unified  direction.  
1958-63	1958	The defense structure must be one which, as a whole, can assume, with top  efficiency and without friction, the defense of America. The Defense  establishment must therefore plan for a better integration of its defensive  resources, particularly with respect to the newer weapons now building and  under development. These obviously require full coordination in their  development, production and use. Good organization can help assure this  coordination.  
1958-64	1958	In recognition of the need for single control in some of our most advanced  development projects, the Secretary of Defense has already decided to  concentrate into one organization all the anti-missile and satellite  technology undertaken within the Department of Defense.  
1958-65	1958	Another requirement of military organization is a clear subordination of  the military services to duly constituted civilian authority. This control  must be real; not merely on the surface.  
1958-66	1958	Next there must be assurance that an excessive number of compartments in  organization will not create costly and confusing compartments in our  scientific and industrial effort.  
1958-67	1958	Finally, to end inter-service disputes requires clear organization and  decisive central direction, supported by the unstinted cooperation of every  individual in the defense establishment, civilian and military.  
1958-68	1958	2. ACCELERATED DEFENSE EFFORT  
1958-69	1958	The second major action item is the acceleration of the defense effort in  particular areas affected by the fast pace of scientific and technological  advance.  
1958-70	1958	Some of the points at which improved and increased effort are most  essential are these:  
1958-71	1958	We must have sure warning in case of attack. The improvement of warning  equipment is becoming increasingly important as we approach the period when  long-range missiles will come into use.  
1958-72	1958	We must protect and disperse our striking forces and increase their  readiness for instant reaction. This means more base facilities and standby  crews.  
1958-73	1958	We must maintain deterrent retaliatory power. This means, among other  things, stepped-up long range missile programs; accelerated programs for  other effective missile systems; and, for some years, more advanced  aircraft.  
1958-74	1958	We must maintain freedom of the seas. This means nuclear submarines and  cruisers; improved anti-submarine weapons; missile ships; and the like.  
1958-75	1958	We must maintain all necessary types of mobile forces to deal with local  conflicts, should there be need. This means further improvements in  equipment, mobility, tactics and fire power.  
1958-76	1958	Through increases in pay and incentive, we must maintain in the armed  forces the skilled manpower modern military forces require.  
1958-77	1958	We must be forward-looking in our research and development to anticipate  and achieve the unimagined weapons of the future.  
1958-78	1958	With these and other improvements, we intend to assure that our vigilance,  power, and technical excellence keep abreast of any realistic threat we  face.  
1958-79	1958	3. MUTUAL AID  
1958-80	1958	Third: We must continue to strengthen our mutual security efforts. Most  people now realize that our programs of military aid and defense support  are an integral part of our own defense effort. If the foundations of the  Free World structure were progressively allowed to crumble under the  pressure of communist imperialism, the entire house of freedom would be in  danger of collapse.  
1958-81	1958	As for the mutual economic assistance program, the benefit to us is  threefold. First, the countries receiving this aid become bulwarks against  communist encroachment as their military defenses and economies are  strengthened. Nations that are conscious of a steady improvement in their  industry, education, health and standard of living are not apt to fall prey  to the blandishments of communist imperialists.  
1958-82	1958	Second, these countries are helped to reach the point where mutually  profitable trade can expand between them and us.  
1958-83	1958	Third, the mutual confidence that comes from working together on  constructive projects creates an atmosphere in which real understanding and  peace can flourish.  
1958-84	1958	To help bring these multiple benefits, our economic aid effort should be  made more effective.  
1958-85	1958	In proposals for future economic aid, I am stressing a greater use of  repayable loans, through the Development Loan Fund, through funds generated  by sale of surplus farm products, and through the Export-Import Bank.  
1958-86	1958	While some increase in Government funds will be required, it remains our  objective to encourage shifting to the use of private capital sources as  rapidly as possible.  
1958-87	1958	One great obstacle to the economic aid program in the past has been, not a  rational argument against it on the merits, but a catchword: "give-away  program."  
1958-88	1958	The real fact is that no investment we make in our own security and peace  can pay us greater dividends than necessary amounts of economic aid to  friendly nations.  
1958-89	1958	This is no "give-away."  
1958-90	1958	Let's stick to facts!  
1958-91	1958	We cannot afford to have one of our most essential security programs shot  down with a slogan!  
1958-92	1958	4. MUTUAL TRADE  
1958-93	1958	Fourth: Both in our national interest, and in the interest of world peace,  we must have a five-year extension of the Trade Agreements Act with  broadened authority to negotiate.  
1958-94	1958	World trade supports a significant segment of American industry and  agriculture. It provides employment for four and one-half million American  workers. It helps supply our ever increasing demand for raw materials. It  provides the opportunity for American free enterprise to develop on a  worldwide scale. It strengthens our friends and increases their desire to  be friends. World trade helps to lay the groundwork for peace by making all  free nations of the world stronger and more self-reliant.  
1958-95	1958	America is today the world's greatest trading nation. If we use this great  asset wisely to meet the expanding demands of the world, we shall not only  provide future opportunities for our own business, agriculture, and labor,  but in the process strengthen our security posture and other prospects for  a prosperous, harmonious world.  
1958-96	1958	As President McKinley said, as long ago as 1901: "Isolation is no longer  possible or desirable .... The period of exclusiveness is past."  
1958-97	1958	5. SCIENTIFIC COOPERATION WITH OUR ALLIES  
1958-98	1958	Fifth: It is of the highest importance that the Congress enact the  necessary legislation to enable us to exchange appropriate scientific and  technical information with friendly countries as part of our effort to  achieve effective scientific cooperation.  
1958-99	1958	It is wasteful in the extreme for friendly allies to consume talent and  money in solving problems that their friends have already solved--all  because of artificial barriers to sharing. We cannot afford to cut  ourselves off from the brilliant talents and minds of scientists in  friendly countries. The task ahead will be hard enough without handcuffs of  our own making.  
1958-100	1958	The groundwork for this kind of cooperation has already been laid in  discussions among NATO countries. Promptness in following through with  legislation will be the best possible evidence of American unity of purpose  in cooperating with our friends.  
1958-101	1958	6. EDUCATION AND RESEARCH  
1958-102	1958	Sixth: In the area of education and research, I recommend a balanced  program to improve our resources, involving an investment of about a  billion dollars over a four year period. This involves new activities by  the Department of Health, Education and Welfare designed principally to  encourage improved teaching quality and student opportunities in the  interests of national security. It also provides a five-fold increase in  sums available to the National Science Foundation for its special  activities in stimulating and improving science education.  
1958-103	1958	Scrupulous attention has been paid to maintaining local control of  educational policy, spurring the maximum amount of local effort, and to  avoiding undue stress on the physical sciences at the expense of other  branches of learning.  
1958-104	1958	In the field of research, I am asking for substantial increases in basic  research funds, including a doubling of the funds available to the National  Science Foundation for this purpose.  
1958-105	1958	But Federal action can do only a part of the job. In both education and  research, redoubled exertions will be necessary on the part of all  Americans if we are to rise to the demands of our times. This means hard  work on the part of state and local governments, private industry, schools  and colleges, private organizations and foundations, teachers, parents,  and--perhaps most important of all--the student himself, with his bag of  books and his homework.  
1958-106	1958	With this kind of all-inclusive campaign, I have no doubt that we can  create the intellectual capital we need for the years ahead, invest it in  the right places--and do all this, not as regimented pawns, but as free men  and women!  
1958-107	1958	7. SPENDING AND SAVING  
1958-108	1958	Seventh: To provide for this extra effort for security, we must apply stern  tests of priority to other expenditures, both military and civilian. This  extra effort involves, most immediately, the need for a supplemental  defense appropriation of $1.3 billion for fiscal year 1958.  
1958-109	1958	In the 1959 budget, increased expenditures for missiles, nuclear ships,  atomic energy, research and development, science and education, a special  contingency fund to deal with possible new technological discoveries, and  increases in pay and incentives to obtain and retain competent manpower add  up to a total increase over the comparable figures in the 1957 budget of  about $4 billion.  
1958-110	1958	I believe that, in spite of these necessary increases, we should strive to  finance the 1959 security effort out of expected revenues. While we now  believe that expected revenues and expenditures will roughly balance, our  real purpose will be to achieve adequate security, but always with the  utmost regard for efficiency and careful management.  
1958-111	1958	This purpose will require the cooperation of Congress in making careful  analysis of estimates presented, reducing expenditure on less essential  military programs and installations, postponing some new civilian programs,  transferring some to the states, and curtailing or eliminating others.  
1958-112	1958	Such related matters as the national debt ceiling and tax revenues will be  dealt with in later messages.  
1958-113	1958	8. WORKS OF PEACE  
1958-114	1958	My last call for action is not primarily addressed to the Congress and  people of the United States. Rather, it is a message from the people of the  United States to all other peoples, especially those of the Soviet Union.  
1958-115	1958	This is the spirit of what we would like to say:  
1958-116	1958	"In the last analysis, there is only one solution to the grim problems that  lie ahead. The world must stop the present plunge toward more and more  destructive weapons of war, and turn the corner that will start our steps  firmly on the path toward lasting peace.  
1958-117	1958	"Our greatest hope for success lies in a universal fact: the people of the  world, as people, have always wanted peace and want peace now.  
1958-118	1958	"The problem, then, is to find a way of translating this universal desire  into action.  
1958-119	1958	"This will require more than words of peace. It requires works of peace."  
1958-120	1958	Now, may I try to give you some concrete examples of the kind of works of  peace that might make a beginning in the new direction.  
1958-121	1958	For a start our people should learn to know each other better. Recent  negotiations in Washington have provided a basis in principle for greater  freedom of communication and exchange of people. I urge the Soviet  government to cooperate in turning principle into practice by prompt and  tangible actions that will break down the unnatural barriers that have  blocked the flow of thought and understanding between our people.  
1958-122	1958	Another kind of work of peace is cooperation on projects of human welfare.  For example, we now have it within our power to eradicate from the face of  the earth that age-old scourge of mankind: malaria. We are embarking with  other nations in an all-out five-year campaign to blot out this curse  forever. We invite the Soviets to join with us in this great work of  humanity.  
1958-123	1958	Indeed, we would be willing to pool our efforts with the Soviets in other  campaigns against the diseases that are the common enemy of all  mortals--such as cancer and heart disease.  
1958-124	1958	If people can get together on such projects, is it not possible that we  could then go on to a full-scale cooperative program of Science for Peace?  
1958-125	1958	We have as a guide and inspiration the success of our Atoms-for-Peace  proposal, which in only a few years, under United Nations auspices, became  a reality in the International Atomic Energy Agency.  
1958-126	1958	A program of Science for Peace might provide a means of funneling into one  place the results of research from scientists everywhere and from there  making it available to all parts of the world.  
1958-127	1958	There is almost no limit to the human betterment that could result from  such cooperation. Hunger and disease could increasingly be driven from the  earth. The age-old dream of a good life for all could, at long last, be  translated into reality.  
1958-128	1958	But of all the works of peace, none is more needed now than a real first  step toward disarmament.  
1958-129	1958	Last August the United Nations General Assembly, by an overwhelming vote,  approved a disarmament plan that we and our allies sincerely believed to be  fair and practical. The Soviets have rejected both the plan, and the  negotiating procedure set up by the United Nations. As a result,  negotiation on this supremely important issue is now at a stand-still.  
1958-130	1958	But the world cannot afford to stand still on disarmament! We must never  give up the search for a basis of agreement.  
1958-131	1958	Our allies from time to time develop differing ideas on how to proceed. We  must concert these convictions among ourselves. Thereafter, any reasonable  proposal that holds promise for disarmament and reduction of tension must  be heard, discussed, and, if possible, negotiated.  
1958-132	1958	But a disarmament proposal, to hold real promise, must at the minimum have  one feature: reliable means to ensure compliance by all. It takes actions  and demonstrated integrity on both sides to create and sustain confidence.  And confidence in a genuine disarmament agreement is vital, not only to the  signers of the agreement, but also to the millions of people all over the  world who are weary of tensions and armaments.  
1958-133	1958	I say once more, to all peoples, that we will always go the extra mile with  anyone on earth if it will bring us nearer a genuine peace.  
1958-134	1958	CONCLUSION  
1958-135	1958	These, then, are the ways in which we must funnel our energies more  efficiently into the task of advancing security and peace.  
1958-136	1958	These actions demand and expect two things of the American people:  sacrifice, and a high degree of understanding. For sacrifice to be  effective it must be intelligent. Sacrifice must be made for the right  purpose and in the right place--even if that place happens to come close to  home!  
1958-137	1958	After all, it is no good demanding sacrifice in general terms one day, and  the next day, for local reasons, opposing the elimination of some unneeded  Federal facility.  
1958-138	1958	It is pointless to condemn Federal spending in general, and the next moment  condemn just as strongly an effort to reduce the particular Federal grant  that touches one's own interest.  
1958-139	1958	And it makes no sense whatever to spend additional billions on military  strength to deter a potential danger, and then, by cutting aid and trade  programs, let the world succumb to a present danger in economic guise.  
1958-140	1958	My friends of the Congress: The world is waiting to see how wisely and  decisively a free representative government will now act.  
1958-141	1958	I believe that this Congress possesses and will display the wisdom promptly  to do its part in translating into law the actions demanded by our nation's  interests. But, to make law effective, our kind of government needs the  full voluntary support of millions of Americans for these actions.  
1958-142	1958	I am fully confident that the response of the Congress and of the American  people will make this time of test a time of honor. Mankind then will see  more clearly than ever that the future belongs, not to the concept of the  regimented atheistic state, but to the people--the God-fearing,  peace-loving people of all the world.  
1958-143	1958	The Address as reported from the floor appears in the Congressional Record  (vol. 104, p. 171).  
1959-1	1959	Mr. President, Mr. Speaker, Members of the 86th Congress, my fellow  citizens:  
1959-2	1959	This is the moment when Congress and the Executive annually begin their  cooperative work to build a better America.  
1959-3	1959	One basic purpose unites us: To promote strength and security, side by side  with liberty and opportunity.  
1959-4	1959	As we meet today, in the 170th year of the Republic, our Nation must  continue to provide--as all other free governments have had to do  throughout time--a satisfactory answer to a question as old as history. It  is: Can Government based upon liberty and the God-given rights of man,  permanently endure when ceaselessly challenged by a dictatorship, hostile  to our mode of life, and controlling an economic and military power of  great and growing strength?  
1959-5	1959	For us the answer has always been found, and is still found in the  devotion, the vision, the courage and the fortitude of our people.  
1959-6	1959	Moreover, this challenge we face, not as a single powerful nation, but as  one that has in recent decades reached a position of recognized leadership  in the Free World.  
1959-7	1959	We have arrived at this position of leadership in an era of remarkable  productivity and growth. It is also a time when man's power of mass  destruction has reached fearful proportions.  
1959-8	1959	Possession of such capabilities helps create world suspicion and tension.  We, on our part, know that we seek only a just peace for all, with  aggressive designs against no one. Yet we realize that there is uneasiness  in the world because of a belief on the part of peoples that through  arrogance, miscalculation or fear of attack, catastrophic war could be  launched. Keeping the peace in today's world more than ever calls for the  utmost in the nation's resolution, wisdom, steadiness and unremitting  effort.  
1959-9	1959	We cannot build peace through desire alone. Moreover, we have learned the  bitter lesson that international agreements, historically considered by us  as sacred, are regarded in Communist doctrine and in practice to be mere  scraps of paper. The most recent proof of their disdain of international  obligations, solemnly undertaken, is their announced intention to abandon  their responsibilities respecting Berlin.  
1959-10	1959	As a consequence, we can have no confidence in any treaty to which  Communists are a party except where such a treaty provides within itself  for self-enforcing mechanisms. Indeed, the demonstrated disregard of the  Communists of their own pledges is one of the greatest obstacles to success  in substituting the Rule of Law for rule by force.  
1959-11	1959	Yet step by step we must strengthen the institutions of peace--a peace that  rests upon justice--a peace that depends upon a deep knowledge and dear  understanding by all peoples of the cause and consequences of possible  failure in this great purpose.  
1959-12	1959	To achieve this peace we seek to prevent war at any place and in any  dimension. If, despite our best efforts, a local dispute should flare into  armed hostilities, the next problem would be to keep the conflict from  spreading, and so compromising freedom. In support of these objectives we  maintain forces of great power and flexibility.  
1959-13	1959	Our formidable air striking forces are a powerful deterrent to general war.  Large and growing portions of these units can depart from their bases in a  matter of minutes.  
1959-14	1959	Similar forces are included in our naval fleets.  
1959-15	1959	Ground and other tactical formations can move with swiftness and precision,  when requested by friendly and responsible governments, to help curb  threatened aggression. The stabilizing influence of this capacity has been  dramatically demonstrated more than once over the past year.  
1959-16	1959	Our military and related scientific progress has been highly gratifying.  
1959-17	1959	Great strides have been made in the development of ballistic missiles.  Intermediate range missiles are now being deployed in operational units.  The Arias intercontinental ballistic missile program has been marked by  rapid development as evidenced by recent successful tests. Missile training  units have been established and launching sites are far along in  construction.  
1959-18	1959	New aircraft that fly at twice the speed of sound are entering our  squadrons.  
1959-19	1959	We have successfully placed five satellites in orbit, which have gathered  information of scientific importance never before available. Our latest  satellite illustrates our steady advance in rocketry and foreshadows new  developments in world-wide communications.  
1959-20	1959	Warning systems constantly improve.  
1959-21	1959	Our atomic submarines have shattered endurance records and made historic  voyages under the North Polar Sea.  
1959-22	1959	A major segment of our national scientific and engineering community is  working intensively to achieve new and greater developments. Advance in  military technology requires adequate financing but, of course, even more,  it requires talent and time.  
1959-23	1959	All this is given only as a matter of history; as a record of our progress  in space and ballistic missile fields in no more than four years of  intensive effort. At the same time we clearly recognize that some of the  recent Soviet accomplishments in this particular technology are indeed  brilliant.  
1959-24	1959	Under the law enacted last year the Department of Defense is being  reorganized to give the Secretary of Defense full authority over the  military establishment. Greater efficiency, more cohesive effort and  speedier reaction to emergencies are among the many advantages we are  already noting from these changes.  
1959-25	1959	These few highlights point up our steady military gains. We are rightfully  gratified by the achievements they represent. But we must remember that  these imposing armaments are purchased at great cost.  
1959-26	1959	National Security programs account for nearly sixty percent of the entire  Federal budget for this coming fiscal year.  
1959-27	1959	Modern weapons are exceedingly expensive.  
1959-28	1959	The overall cost of introducing ATLAS into our armed forces will average  $35 million per missile on the firing line.  
1959-29	1959	This year we are investing an aggregate of close to $7 billion in missile  programs alone.  
1959-30	1959	Other billions go for research, development, test and evaluation of new  weapons systems.  
1959-31	1959	Our latest atomic submarines will cost $50 millions each, while some  special types will cost three times as much.  
1959-32	1959	We are now ordering fighter aircraft which are priced at fifty times as  much as the fighters of World War II.  
1959-33	1959	We are buying certain bombers that cost their weight in gold.  
1959-34	1959	These sums are tremendous, even when compared with the marvelous resiliency  and capacity of our economy.  
1959-35	1959	Such expenditures demand both balance and perspective in our planning for  defense. At every turn, we must weigh, judge and select. Needless  duplication of weapons and forces must be avoided.  
1959-36	1959	We must guard against feverish building of vast armaments to meet glibly  predicted moments of so-called "maximum peril." The threat we face is not  sporadic or dated: It is continuous. Hence we must not be swayed in our  calculations either by groundless fear or by complacency. We must avoid  extremes, for vacillation between extremes is inefficient, costly, and  destructive of morale. In these days of unceasing technological advance, we  must plan our defense expenditures systematically and with care, fully  recognizing that obsolescence compels the never-ending replacement of older  weapons with new ones.  
1959-37	1959	The defense budget for the coming year has been planned on the basis of  these principles and considerations. Over these many months I have  personally participated in its development.  
1959-38	1959	The aim is a sensible posture of defense. The secondary aim is increased  efficiency and avoidance of waste. Both are achieved by this budgetary  plan.  
1959-39	1959	Working by these guide lines I believe with all my heart that America can  be as sure of the strength and efficiency of her armed forces as she is of  their loyalty. I am equally sure that the nation will thus avoid useless  expenditures which, in the name of security, might tend to undermine the  economy and, therefore, the nation's safety.  
1959-40	1959	Our own vast strength is only a part of that required for dependable  security. Because of this we have joined with nearly 50 other nations in  collective security arrangements. In these common undertakings each nation  is expected to contribute what it can in sharing the heavy load. Each  supplies part of a strategic deployment to protect the forward boundaries  of freedom.  
1959-41	1959	Constantly we seek new ways to make more effective our contribution to this  system of collective security. Recently I have asked a Committee of eminent  Americans of both parties to re-appraise our military assistance programs  and the relative emphasis which should be placed on military and economic  aid.  
1959-42	1959	I am hopeful that preliminary recommendations of this Committee will be  available in time to assist in shaping the Mutual Security program for the  coming fiscal year.  
1959-43	1959	Any survey of the free world's defense structure cannot fail to impart a  feeling of regret that so much of our effort and resources must be devoted  to armaments. At Geneva and elsewhere we continue to seek technical and  other agreements that may help to open up, with some promise, the issues of  international disarmament. America will never give up the hope that  eventually all nations can, with mutual confidence, drastically reduce  these non-productive expenditures. II.  
1959-44	1959	The material foundation of our national safety is a strong and expanding  economy. This we have--and this we must maintain. Only with such an economy  can we be secure and simultaneously provide for the well-being of our  people.  
1959-45	1959	A year ago the nation was experiencing a decline in employment and output.  Today that recession is fading into history, and this without gigantic,  hastily-improvised public works projects or untimely tax reductions. A  healthy and vigorous recovery has been under way since last May. New homes  are being built at the highest rate in several years. Retail sales are at  peak levels. Personal income is at an all-time high.  
1959-46	1959	The marked forward thrust of our economy reaffirms our confidence in  competitive enterprise. But--clearly--wisdom and prudence in both the  public and private sectors of the economy are always necessary.  
1959-47	1959	Our outlook is this: 1960 commitments for our armed forces, the Atomic  Energy Commission and Military Assistance exceed 47 billion dollars. In the  foreseeable future they are not likely to be significantly lower. With an  annual population increase of three million, other governmental costs are  bound to mount.  
1959-48	1959	After we have provided wisely for our military strength, we must judge how  to allocate our remaining government resources most effectively to promote  our well-being and economic growth.  
1959-49	1959	Federal programs that will benefit all citizens are moving forward.  
1959-50	1959	Next year we will be spending increased amounts on health programs; on  Federal assistance to science and education; on the development of the  nation's water resources; on the renewal of urban areas; and on our vast  system of Federal-aid highways.  
1959-51	1959	Each of these additional outlays is being made necessary by the surging  growth of America.  
1959-52	1959	Let me illustrate. Responsive to this growth, Federal grants and long term  loans to assist 14 major types of capital improvements in our cities will  total over 2 billion dollars in 1960--double the expenditure of two years  ago. The major responsibility for development in these fields rests in the  localities, even though the Federal Government will continue to do its  proper part in meeting the genuine needs of a burgeoning population.  
1959-53	1959	But the progress of our economy can more than match the growth of our  needs. We need only to act wisely and confidently.  
1959-54	1959	Here, I hope you will permit me to digress long enough to express something  that is much on my mind.  
1959-55	1959	The basic question facing us today is more than mere survival--the military  defense of national life and territory. It is the preservation of a way of  life.  
1959-56	1959	We must meet the world challenge and at the same time permit no stagnation  in America.  
1959-57	1959	Unless we progress, we regress.  
1959-58	1959	We can successfully sustain security and remain true to our heritage of  freedom if we clearly visualize the tasks ahead and set out to perform them  with resolution and fervor. We must first define these tasks and then  understand what we must do to perform them.  
1959-59	1959	If progress is to be steady we must have long term guides extending far  ahead, certainly five, possibly even ten years. They must reflect the  knowledge that before the end of five years we will have a population of  over 190 million. They must be goals that stand high, and so inspire every  citizen to climb always toward mounting levels of moral, intellectual and  material strength. Every advance toward them must stir pride in individual  and national achievements.  
1959-60	1959	To define these goals, I intend to mobilize help from every available  source.  
1959-61	1959	We need more than politically ordained national objectives to challenge the  best efforts of free men and women. A group of selfless and devoted  individuals, outside of government, could effectively participate in making  the necessary appraisal of the potentials of our future. The result would  be establishment of national goals that would not only spur us on to our  finest efforts, but would meet the stern test of practicality.  
1959-62	1959	The Committee I plan will comprise educators and representatives of labor,  management, finance, the professions and every other kind of useful  activity.  
1959-63	1959	Such a study would update and supplement, in the light of continuous  changes in our society and its economy, the monumental work of the  Committee on Recent Social Trends which was appointed in 1931 by President  Hoover. Its report has stood the test of time and has had a beneficial  influence on national development. The new Committee would be concerned,  among other things, with the acceleration of our economy's growth and the  living standards of our people, their health and education, their better  assurance of life and liberty and their greater opportunities. It would  also be concerned with methods to meet such goals and what levels of  government--Local, State, or Federal--might or should be particularly  concerned.  
1959-64	1959	As one example, consider our schools, operated under the authority of local  communities and states. In their capacity and in their quality they conform  to no recognizable standards. In some places facilities are ample, in  others meager. Pay of teachers ranges between wide limits, from the  adequate to the shameful. As would be expected, quality of teaching varies  just as widely. But to our teachers we commit the most valuable possession  of the nation and of the family--our children.  
1959-65	1959	We must have teachers of competence. To obtain and hold them we need  standards. We need a National Goal. Once established I am certain that  public opinion would compel steady progress toward its accomplishment.  
1959-66	1959	Such studies would be helpful, I believe, to government at all levels and  to all individuals. The goals so established could help us see our current  needs in perspective. They will spur progress.  
1959-67	1959	We do not forget, of course, that our nation's progress and fiscal  integrity are interdependent and inseparable. We can afford everything we  clearly need, but we cannot afford one cent of waste. We must examine every  item of governmental expense critically. To do otherwise would betray our  nation's future. Thrift is one of the characteristics that has made this  nation great. Why should we ignore it now?  
1959-68	1959	We must avoid any contribution to inflationary processes, which could  disrupt sound growth in our economy.  
1959-69	1959	Prices have displayed a welcome stability in recent months and, if we are  wise and resolute, we will not tolerate inflation in the years to come. But  history makes clear the risks inherent in any failure to deal firmly with  the .basic causes of inflation. Two of the most important of these causes  are the wage-price spiral and continued deficit financing.  
1959-70	1959	Inflation would reduce job opportunities, price us out of world markets,  shrink the value of savings and penalize the thrift so essential to finance  a growing economy.  
1959-71	1959	Inflation is not a Robin Hood, taking from the rich to give to the poor.  Rather, it deals most cruelly with those who can least protect themselves.  It strikes hardest those millions of our citizens whose incomes do not  quickly rise with the cost of living. When prices soar, the pensioner and  the widow see their security undermined, the man of thrift sees his savings  melt away; the white collar worker, the minister, and the teacher see their  standards of living dragged down.  
1959-72	1959	Inflation can be prevented. But this demands statesmanship on the part of  business and labor leaders and of government at all levels.  
1959-73	1959	We must encourage the self-discipline, the restraint necessary to curb the  wage-price spiral and we must meet current costs from current revenue.  
1959-74	1959	To minimize the danger of future soaring prices and to keep our economy  sound and expanding, I shall present to the Congress certain proposals.  
1959-75	1959	First, I shall submit a balanced budget for the next year, a year expected  to be the most prosperous in our history. It is a realistic budget with  wholly attainable objectives.  
1959-76	1959	If we cannot live within our means during such a time of rising prosperity,  the hope for fiscal integrity will fade. If we persist in living beyond our  means, we make it difficult for every family in our land to balance its own  household budget. But to live within our means would be a tangible  demonstration of the self-discipline needed to assure a stable dollar.  
1959-77	1959	The Constitution entrusts the Executive with many functions, but the  Congress--and the Congress alone--has the power of the purse. Ultimately  upon Congress rests responsibility for determining the scope and amount of  Federal spending.  
1959-78	1959	By working together, the Congress and the Executive can keep a balance  between income and outgo. If this is done there is real hope that we can  look forward to a time in the foreseeable future when needed tax reforms  can be accomplished.  
1959-79	1959	In this hope, I am requesting the Secretary of the Treasury to prepare  appropriate proposals for revising, at the proper time, our tax structure,  to remove inequities and to enhance incentives for all Americans to work,  to save, and to invest. Such recommendations will be made as soon as our  fiscal condition permits. These prospects will be brightened if 1960  expenditures do not exceed the levels recommended.  
1959-80	1959	Second, I shall recommend to the Congress that the Chief Executive be given  the responsibility either to approve or to veto specific items in  appropriations and authorization bills. This would save tax dollars.  
1959-81	1959	Third, to reduce Federal operations in an area where private enterprise can  do the job, I shall recommend legislation for greater flexibility in  extending Federal credit, and in improving the procedures under which  private credits are insured or guaranteed. Present practices have  needlessly added large sums to Federal expenditures.  
1959-82	1959	Fourth, action is required to make more effective use of the large Federal  expenditures for agriculture and to achieve greater fiscal control in this  area.  
1959-83	1959	Outlays of the Department of Agriculture for the current fiscal year for  the support of farm prices on a very few farm products will exceed five  billion dollars. That is a sum equal to approximately two-fifths of the net  income of all farm operators in the entire United States.  
1959-84	1959	By the end of this fiscal year it is estimated that there will be in  Government hands surplus farm products worth about nine billion dollars.  And by July 1, 1959, Government expenditures for storage, interest, and  handling of its agricultural inventory will reach a rate of one billion  dollars a year.  
1959-85	1959	This level of expenditure for farm products could be made willingly for a  temporary period if it were leading to a sound solution of the problem. But  unfortunately this is not true. We need new legislation.  
1959-86	1959	In the past I have sent messages to the Congress requesting greater freedom  for our farmers to manage their own farms and greater freedom for markets  to reflect the wishes of producers and consumers. Legislative changes that  followed were appropriate in direction but did not go far enough.  
1959-87	1959	The situation calls for prompt and forthright action. Recommendation for  action will be contained in a message to be transmitted to the Congress  shortly.  
1959-88	1959	These fiscal and related actions will help create an environment of price  stability for economic growth. However, certain additional measures are  needed.  
1959-89	1959	I shall ask Congress to amend the Employment Act of 1946 to make it clear  that Government intends to use all appropriate means to protect the buying  power of the dollar.  
1959-90	1959	I am establishing a continuing Cabinet group on Price Stability for  Economic Growth to study governmental and private policies affecting costs,  prices, and economic growth. It will strive also to build a better public  understanding of the conditions necessary for maintaining growth and price  stability.  
1959-91	1959	Studies are being undertaken to improve our information on prices, wages,  and productivity.  
1959-92	1959	I believe all citizens in all walks of life will support this program of  action to accelerate economic growth and promote price stability. III.  
1959-93	1959	I take up next certain aspects of our international situation and our  programs to strengthen it.  
1959-94	1959	America's security can be assured only within a world community strong,  stable, independent nations, in which the concepts of freedom, justice and  human dignity can flourish.  
1959-95	1959	There can be no such thing as Fortress America. If ever we were reduced to  the isolation implied by that term, we would occupy a prison, not a  fortress. The question whether we can afford to help other nations that  want to defend their freedom but cannot fully do so from their own means,  has only one answer: we can and we must, we have been doing so since 1947.  
1959-96	1959	Our foreign policy has long been dedicated to building a permanent and just  peace.  
1959-97	1959	During the past six years our free world security arrangements have been  bolstered and the bonds of freedom have been more closely knit. Our friends  in Western Europe are experiencing new internal vitality, and are  increasingly more able to resist external threats.  
1959-98	1959	Over the years the world has come to understand clearly that it is our firm  policy not to countenance aggression. In Lebanon, Taiwan, and Berlin--our  stand has been dear, right, and expressive of the determined will of a  united people.  
1959-99	1959	Acting with other free nations we have undertaken the solemn obligation to  defend the people of free Berlin against any effort to destroy their  freedom. In the meantime we shall constantly seek meaningful agreements to  settle this and other problems, knowing full well that not only the  integrity of a single city, but the hope of all free peoples is at stake.  
1959-100	1959	We need, likewise, to continue helping to build the economic base so  essential to the Free World's stability and strength.  
1959-101	1959	The International Monetary Fund and the World Bank have both fully proven  their worth as instruments of international financial cooperation. Their  Executive Directors have recommended an increase in each member country's  subscription. I am requesting the Congress for immediate approval of our  share of these increases.  
1959-102	1959	We are now negotiating with representatives of the twenty Latin American  Republics for the creation of an inter-American financial institution. Its  purpose would be to join all the American Republics in a common institution  which would promote and finance development in Latin America, and make more  effective the use of capital from the World Bank, the Export-Import Bank,  and private sources.  
1959-103	1959	Private enterprise continues to make major contributions to economic  development in all parts of the world. But we have not yet marshalled the  full potential of American business for this task, particularly in  countries which have recently attained their independence. I shall present  to this Congress a program designed to encourage greater participation by  private enterprise in economic development abroad.  
1959-104	1959	Further, all of us know that to advance the cause of freedom we must do  much more than help build sound economies. The spiritual, intellectual, and  physical strength of people throughout the world will in the last analysis  determine their willingness and their ability to resist Communism.  
1959-105	1959	To give a single illustration of our many efforts in these fields: We have  been a participant in the effort that has been made over the past few years  against one of the great scourges of mankind--disease. Through the Mutual  Security program public health officials are being trained by American  universities to serve in less developed countries. We are engaged in  intensive malaria eradication projects in many parts of the world.  America's major successes in our own country prove the feasibility of  success everywhere.  
1959-106	1959	By these and other means we shall continue and expand our campaign against  the afflictions that now bring needless suffering and death to so many of  the world's people. We wish to be part of a great shared effort toward the  triumph of health. IV.  
1959-107	1959	America is best described by one word, freedom.  
1959-108	1959	If we hope to strengthen freedom in the world we must be ever mindful of  how our own conduct reacts elsewhere. No nation has ever been so  floodlighted by world opinion as the United States is today. Everything we  do is carefully scrutinized by other peoples throughout the world. The bad  is seen along with the good.  
1959-109	1959	Because we are human we err. But as free men we are also responsible for  correcting the errors and imperfections of our ways.  
1959-110	1959	Last January I made comprehensive recommendations to the Congress for  legislation in the labor-management field. To my disappointment, Congress  failed to act. The McClellan Committee disclosures of corruption,  racketeering, and abuse of trust and power in labor-management affairs have  aroused America and amazed other peoples. They emphasize the need for  improved local law enforcement and the enactment of effective Federal  legislation to protect the public interest and to insure the rights and  economic freedoms of millions of American workers. Halfhearted measures  will not do. I shall recommend prompt enactment of legislation designed:  
1959-111	1959	To safeguard workers' funds in union treasuries against misuse of any kind  whatsoever.  
1959-112	1959	To protect the rights and freedoms of individual union members, including  the basic right to free and secret elections of officers.  
1959-113	1959	To advance true and responsible collective bargaining.  
1959-114	1959	To protect the public and innocent third parties from unfair and coercive  practices such as boycotting and blackmail picketing.  
1959-115	1959	The workers and the public must have these vital protections.  
1959-116	1959	In other areas of human rights--freedom from discrimination in voting, in  public education, in access to jobs, and in other respects--the world is  likewise watching our conduct.  
1959-117	1959	The image of America abroad is not improved when school children, through  closing of some of our schools and through no fault of their own, are  deprived of their opportunity for an education.  
1959-118	1959	The government of a free people has no purpose more noble than to work for  the maximum realization of equality of opportunity under law. This is not  the sole responsibility of any one branch of our government. The judicial  arm, which has the ultimate authority for interpreting the Constitution,  has held that certain state laws and practices discriminate upon racial  grounds and are unconstitutional. Whenever the supremacy of the  Constitution of the United States is challenged I shall continue to take  every action necessary to uphold it.  
1959-119	1959	One of the fundamental concepts of our constitutional system is that it  guarantees to every individual, regardless of race, religion, or national  origin, the equal protection of the laws. Those of us who are privileged to  hold public office have a solemn obligation to make meaningful this  inspiring objective. We can fulfill that obligation by our leadership in  teaching, persuading, demonstrating, and in enforcing the law.  
1959-120	1959	We are making noticeable progress in the field of civil rights--we are  moving forward toward achievement of equality of opportunity for all people  everywhere in the United States. In the interest of the nation and of each  of its citizens, that progress must continue.  
1959-121	1959	Legislative proposals of the Administration in this field will be submitted  to the Congress early in the session. All of us should help to make clear  that the government is united in the common purpose of giving support to  the law and the decisions of the Courts.  
1959-122	1959	By moving steadily toward the goal of greater freedom under law, for our  own people, we shall be the better prepared to work for the cause of  freedom under law throughout the world.  
1959-123	1959	All peoples are solely tired of the fear, destruction, and the waste of  war. As never before, the world knows the human and material costs of war  and seeks to replace force with a genuine role of law among nations.  
1959-124	1959	It is my purpose to intensify efforts during the coming two years in  seeking ways to supplement the procedures of the United Nations and other  bodies with similar objectives, to the end that the rule of law may replace  the rule of force in the affairs of nations. Measures toward this end will  be proposed later, including a re-examination of our own relation to the  International Court of Justice.  
1959-125	1959	Finally--let us remind ourselves that Marxist scripture is not new; it is  not the gospel of the future. Its basic objective is dictatorship, old as  history. What is new is the shining prospect that man can build a world  where all can live in dignity.  
1959-126	1959	We seek victory--not over any nation or people--but over the ancient  enemies of us all; victory over ignorance, poverty, disease, and human  degradation wherever they may be found.  
1959-127	1959	We march in the noblest of causes--human freedom.  
1959-128	1959	If we make ourselves worthy of America's ideals, if we do not forget that  our nation was founded on the premise that all men are creatures of God's  making, the world will come to know that it is free men who carry forward  the true promise of human progress and dignity.  
1959-129	1959	The Address as reported from the floor appears in the Congressional Record  of January 9, 1959 (vol. 105, p. 163).  
1960-1	1960	Mr. President, Mr. Speaker, Members of the 86th Congress:  
1960-2	1960	Seven years ago I entered my present office with one long-held resolve  overriding all others. I was then, and remain now, determined that the  United States shall become an ever more potent resource for the cause of  peace--realizing that peace cannot be for ourselves alone, but for peoples  everywhere. This determination is shared by the entire Congress--indeed, by  all Americans.  
1960-3	1960	My purpose today is to discuss some features of America's position, both at  home and in her relations to others.  
1960-4	1960	First, I point out that for us, annual self-examination is made a definite  necessity by the fact that we now live in a divided world of uneasy  equilibrium, with our side committed to its own protection and against  aggression by the other.  
1960-5	1960	With both sides of this divided world in possession of unbelievably  destructive weapons, mankind approaches a state where mutual annihilation  becomes a possibility. No other fact of today's world equals this in  importance--it colors everything we say, plan, and do.  
1960-6	1960	There is demanded of us, vigilance, determination, and the dedication of  whatever portion of our resources that will provide adequate security,  especially a real deterrent to aggression. These things we are doing.  
1960-7	1960	All these facts emphasize the importance of striving incessantly for a just  peace.  
1960-8	1960	Only through the strengthening of the spiritual, intellectual, economic and  defensive resources of the Free World can we, in confidence, make progress  toward this goal.  
1960-9	1960	Second, we note that recent Soviet deportment and pronouncements suggest  the possible opening of a somewhat less strained period in the  relationships between the Soviet Union and the Free World. If these  Pronouncements be genuine, there is brighter hope of diminishing the  intensity of past rivalry and eventually of substituting persuasion for  coercion. Whether this is to become an era of lasting promise remains to be  tested by actions.  
1960-10	1960	Third, we now stand in the vestibule of a vast new technological age-one  that, despite its capacity for human destruction, has an equal capacity to  make poverty and human misery obsolete. If our efforts are wisely  directed--and if our unremitting efforts for dependable peace begin to  attain some success--we can surely become participants in creating an age  characterized by justice and rising levels of human well-being.  
1960-11	1960	Over the past year the Soviet Union has expressed an interest in measures  to reduce the common peril of war.  
1960-12	1960	While neither we nor any other Free World nation can permit ourselves to be  misled by pleasant promises until they are tested by performance, yet we  approach this apparently new opportunity with the utmost seriousness. We  must strive to break the calamitous cycle of frustrations and crises which,  if unchecked, could spiral into nuclear disaster; the ultimate insanity.  
1960-13	1960	Though the need for dependable agreements to assure against resort to force  in settling disputes is apparent to both sides yet as in other issues  dividing men and nations, we cannot expect sudden and revolutionary  results. But we must find some place to begin.  
1960-14	1960	One obvious road on which to make a useful start is in the widening of  communication between our two peoples. In this field there are, both sides  willing, countless opportunities--most of them well known to us all--for  developing mutual understanding, the true foundation of peace.  
1960-15	1960	Another avenue may be through the reopening, on January twelfth, of  negotiations looking to a controlled ban on the testing of nuclear weapons.  Unfortunately, the closing statement from the Soviet scientists who met  with our scientists at Geneva in an unsuccessful effort to develop an  agreed basis for a test ban, gives the clear impression that their  conclusions have been politically guided. Those of the British and American  scientific representatives are their own freely-formed, individual and  collective opinion. I am hopeful that as new negotiations begin, truth--not  political opportunism--will be the guiding light of the deliberations.  
1960-16	1960	Still another avenue may be found in the field of disarmament, in which the  Soviets have professed a readiness to negotiate seriously. They have not,  however, made clear the plans they may have, if any, for mutual inspection  and verification--the essential condition for any extensive measure of  disarmament.  
1960-17	1960	There is one instance where our initiative for peace has recently been  successful. A multi-lateral treaty signed last month provides for the  exclusively peaceful use of Antarctica, assured by a system of inspection.  It provides for free and cooperative scientific research in that continent,  and prohibits nuclear explosions there pending general international  agreement on the subject. The Treaty is a significant contribution toward  peace, international cooperation, and the advancement of science. I shall  transmit its text to the Senate for consideration and approval in the near  future.  
1960-18	1960	The United States is always ready to participate with the Soviet Union in  serious discussion of these or any other subjects that may lead to peace  with justice.  
1960-19	1960	Certainly it is not necessary to repeat that the United States has no  intention of interfering in the internal affairs of any nation; likewise we  reject any attempt to impose its system on us or on other peoples by force  or subversion.  
1960-20	1960	This concern for the freedom of other peoples is the intellectual and  spiritual cement which has allied us with more than forty other nations in  a common defense effort. Not for a moment do we forget that our own fate is  firmly fastened to that of these countries; we will not act in any way  which would jeopardize our solemn commitments to them.  
1960-21	1960	We and our friends are, of course, concerned with self-defense. Growing out  of this concern is the realization that all people of the Free World have a  great stake in the progress, in freedom, of the uncommitted and newly  emerging nations. These peoples, desperately hoping to lift themselves to  decent levels of living must not, by our neglect, be forced to seek help  from, and finally become virtual satellites of, those who proclaim their  hostility to freedom.  
1960-22	1960	Their natural desire for a better life must not be frustrated by  withholding from them necessary technical and investment assistance. This  is a problem to be solved not by America alone, but also by every nation  cherishing the same ideals and in position to provide help.  
1960-23	1960	In recent years America's partners and friends in Western Europe and Japan  have made great economic progress. Their newly found economic strength is  eloquent testimony to the striking success of the policies of economic  cooperation which we and they have pursued.  
1960-24	1960	The international economy of 1960 is markedly different from that of the  early postwar years. No longer is the United States the only major  industrial country capable of providing substantial amounts of the  resources so urgently needed in the newly-developing countries.  
1960-25	1960	To remain secure and prosperous themselves, wealthy nations must extend the  kind of cooperation to the less fortunate members that will inspire hope,  confidence and progress. A rich nation can for a time, without noticeable  damage to itself, pursue a course of self-indulgence, making its single  goal the material ease and comfort of its own citizens-thus repudiating its  own spiritual and material stake in a peaceful and prosperous society of  nations. But the enmities it will incur, the isolation into which it will  descend, and the internal moral and physical softness that will be  engendered, will, in the long term, bring it to disaster.  
1960-26	1960	America did not become great through softness and self-indulgence. Her  miraculous progress and achievements flow from other qualities far more  worthy and substantial--  
1960-27	1960	--adherence to principles and methods consonant with our religious  philosophy  
1960-28	1960	--a satisfaction in hard work  
1960-29	1960	--the readiness to sacrifice for worthwhile causes  
1960-30	1960	--the courage to meet every challenge to her progress  
1960-31	1960	--the intellectual honesty and capacity to recognize the true path of her  own best interests.  
1960-32	1960	To us and to every nation of the Free World, rich or poor, these qualities  are necessary today as never before if we are to march together to greater  security, prosperity and peace.  
1960-33	1960	I believe the industrial countries are ready to participate actively in  supplementing the efforts of the developing countries to achieve progress.  
1960-34	1960	The immediate need for this kind of cooperation is underscored by the  strain in our international balance of payments. Our surplus from foreign  business transactions has in recent years fallen substantially short of the  expenditures we make abroad to maintain our military establishments  overseas, to finance private investment, and to provide assistance to the  less developed nations. In 1959 our deficit in balance of payments  approached $4 billion.  
1960-35	1960	Continuing deficits of anything like this magnitude would, over time,  impair our own economic growth and check the forward progress of the Free  World.  
1960-36	1960	We must meet this situation by promoting a rising volume of exports and  world trade. Further, we must induce all industrialized nations of the Free  World to work together in a new cooperative endeavor to help lift the  scourge of poverty from less fortunate nations. This will provide for  better sharing of this burden and for still further profitable trade.  
1960-37	1960	New nations, and others struggling with the problems of development, will  progress only if they demonstrate faith in their own destiny and possess  the will and use their own resources to fulfill it. Moreover, progress in a  national transformation can be only gradually earned; there is no easy and  quick way to follow from the oxcart to the jet plane. But, just as we drew  on Europe for assistance in our earlier years, so now do those new and  emerging nations that have this faith and determination deserve help.  
1960-38	1960	Over the last fifteen years, twenty nations have gained political  independence. Others are doing so each year. Most of them are woefully  lacking in technical capacity and in investment capital; without Free World  support in these matters they cannot effectively progress in freedom.  
1960-39	1960	Respecting their need, one of the major focal points of our concern is the  South Asian region. Here, in two nations alone, are almost five hundred  million people, all working, and working hard, to raise their standards,  and in doing so, to make of themselves a strong bulwark against the spread  of an ideology that would destroy liberty.  
1960-40	1960	I cannot express to you the depth of my conviction that, in our own and  Free World interests, we must cooperate with others to help these people  achieve their legitimate ambitions, as expressed in their different  multi-year plans. Through the World Bank and other instrumentalities, as  well as through individual action by every nation in position to help, we  must squarely face this titanic challenge.  
1960-41	1960	All of us must realize, of course, that development in freedom by the newly  emerging nations, is no mere matter of obtaining outside financial  assistance. An indispensable element in this process is a strong and  continuing determination on the part of these nations to exercise the  national discipline necessary for any sustained development period. These  qualities of determination are particularly essential because of the fact  that the process of improvement will necessarily be gradual and laborious  rather than revolutionary. Moreover, everyone should be aware that the  development process is no short term phenomenon. Many years are required  for even the most favorably situated countries.  
1960-42	1960	I shall continue to urge the American people, in the interests of their own  security, prosperity and peace, to make sure that their own part of this  great project be amply and cheerfully supported. Free World decisions in  this matter may spell the difference between world disaster and world  progress in freedom.  
1960-43	1960	Other countries, some of which I visited last month, have similar needs.  
1960-44	1960	A common meeting ground is desirable for those nations which are prepared  to assist in the development effort. During the past year I have discussed  this matter with the leaders of several Western Nations.  
1960-45	1960	Because of its wealth of experience, the Organization for European Economic  Cooperation could help with initial studies. The goal is to enlist all  available economic resources in the industrialized Free World-especially  private investment capital. But I repeat that .this help, no matter how  great, can be lastingly effective only if it is used as a supplement to the  strength of spirit and will of the people of the newly-developing nations.  
1960-46	1960	By extending this help we hope to make possible the enthusiastic enrollment  of these nations under freedom's banner. No more startling contrast to a  system of sullen satellites could be imagined.  
1960-47	1960	If we grasp this opportunity to build an age of productive partnership  between the less fortunate nations and those that have already achieved a  high state of economic advancement, we will make brighter the outlook for a  world order based upon security, freedom and peace. Otherwise, the outlook  could be dark indeed. We face what may be a turning point in history, and  we must act decisively.  
1960-48	1960	As a nation we can successfully pursue these objectives only from a  position of broadly based strength.  
1960-49	1960	No matter how earnest is our quest for guaranteed peace, we must maintain a  high degree of military effectiveness at the same time we are engaged in  negotiating the issue of arms reduction. Until tangible and mutually  enforceable arms reduction measures are worked out, we will not weaken the  means of defending our institutions.  
1960-50	1960	America possesses an enormous defense power. It is my studied conviction  that no nation will ever risk general war against us unless we should be so  foolish as to neglect the defense forces we now so powerfully support. It  is world-wide knowledge that any nation which might be tempted today to  attack the United States, even though our country might sustain great  losses, would itself promptly suffer a terrible destruction. But I once  again assure all peoples and all nations that the United States, except in  defense, will never turn loose this destructive power.  
1960-51	1960	During the past year, our long-range striking power, unmatched today in  manned bombers, has taken on new strength as the Atlas intercontinental  ballistic missile has entered the operational inventory. In fourteen recent  test launchings, at ranges of over 5,000 miles, Atlas has been striking on  an average within two miles of the target. This is less than the length of  a jet runway--well within the circle of total destruction. Such performance  is a great tribute to American scientists and engineers, who in the past  five years have had to telescope time and technology to develop these  long-range ballistic missiles, where America had none before.  
1960-52	1960	This year, moreover, growing numbers of nuclear-powered submarines will  enter our active forces, some to be armed with Polaris missiles. These  remarkable ships and weapons, ranging the oceans, will be capable of  accurate fire on targets virtually anywhere on earth. Impossible to destroy  by surprise attack, they will become one of our most effective sentinels  for peace.  
1960-53	1960	To meet situations of less than general nuclear war, we continue to  maintain our carrier forces, our many service units abroad, our always  ready Army strategic forces and Marine Corps divisions, and the civilian  components. The continuing modernization of these forces is a costly but  necessary process, and is scheduled to go forward at a rate which will  steadily add to our strength.  
1960-54	1960	The deployment of a portion of these forces beyond our shores, on land and  sea, is persuasive demonstration of our determination to stand  shoulder-to-shoulder with our allies for collective security. Moreover, I  have directed that steps be taken to program our military assistance to  these allies on a longer range basis. This is necessary for a sounder  collective defense system.  
1960-55	1960	Next I refer to our effort in space exploration, which is often mistakenly  supposed to be an integral part of defense research and development.  
1960-56	1960	First, America has made great contributions in the past two years to the  world's fund of knowledge of astrophysics and space science. These  discoveries are of present interest chiefly to the scientific community;  but they are important foundation-stones for more extensive exploration of  outer space for the ultimate benefit of all mankind.  
1960-57	1960	Second, our military missile program, going forward so successfully, does  not suffer from our present lack of very large rocket engines, which are so  necessary in distant space exploration. I am assured by experts that the  thrust of our present missiles is fully adequate for defense requirements.  
1960-58	1960	Third, the United States is pressing forward in the development of large  rocket engines to place much heavier vehicles into space for exploration  purposes.  
1960-59	1960	Fourth, in the meantime, it is necessary to remember that we have only  begun to probe the environment immediately surrounding the earth. Using  launch systems presently available, we are developing satellites to scout  the world's weather; satellite relay stations to facilitate and extend  communications over the globe; for navigation aids to give accurate  bearings to ships and aircraft; and for perfecting instruments to collect  and transmit the data we seek. This is the area holding the most promise  for early and useful applications of space technology.  
1960-60	1960	Fifth, we have just completed a year's experience with our new space law. I  believe it deficient in certain particulars and suggested improvements will  be submitted shortly.  
1960-61	1960	The accomplishment of the many tasks I have alluded to requires the  continuous strengthening of the spiritual, intellectual, and economic  sinews of American life. The steady purpose of our society is to assure  justice, before God, for every individual. We must be ever alert that  freedom does not wither through the careless amassing of restrictive  controls or the lack of courage to deal boldly with the giant issues of the  day.  
1960-62	1960	A year ago, when I met with you, the nation was emerging from an economic  downturn, even though the signs of resurgent prosperity were not then  sufficiently convincing to the doubtful. Today our surging strength is  apparent to everyone. 1960 promises to be the most prosperous year in our  history.  
1960-63	1960	Yet we continue to be afflicted by nagging disorders.  
1960-64	1960	Among current problems that require solution are:  
1960-65	1960	--the need to protect the public interest in situations of prolonged  labor-management stalemate;  
1960-66	1960	--the persistent refusal to come to grips with a critical problem in one  sector of American agriculture;  
1960-67	1960	--the continuing threat of inflation, together with the persisting tendency  toward fiscal irresponsibility;  
1960-68	1960	--in certain instances the denial to some of our citizens of equal  protection of the law.  
1960-69	1960	Every American was disturbed by the prolonged dispute in the steel industry  and the protracted delay in reaching a settlement.  
1960-70	1960	We are all relieved that a settlement has at last been achieved in that  industry. Percentagewise, by this settlement the increase to the steel  companies in employment costs is lower than in any prior wage settlement  since World War II. It is also gratifying to note that despite the increase  in wages and benefits several of the major steel producers have announced  that there will be no increase in steel prices at this time. The national  interest demands that in the period of industrial peace which has been  assured by the new contract both management and labor make every possible  effort to increase efficiency and productivity in the manufacture of steel  so that price increases can be avoided.  
1960-71	1960	One of the lessons of this story is that the potential danger to the entire  Nation of longer and greater strikes must be met. To insure against such  possibilities we must of course depend primarily upon the good commonsense  of the responsible individuals. It is my intention to encourage regular  discussions between management and labor outside the bargaining table, to  consider the interest of the public as well as their mutual interest in the  maintenance of industrial peace, price stability and economic growth.  
1960-72	1960	To me, it seems almost absurd for the United States to recognize the need,  and so earnestly to seek, for cooperation among the nations unless we can  achieve voluntary, dependable, abiding cooperation among the important  segments of our own free society.  
1960-73	1960	Failure to face up to basic issues in areas other than those of  labor-management can cause serious strains on the firm freedom supports of  our society.  
1960-74	1960	I refer to agriculture as one of these areas.  
1960-75	1960	Our basic farm laws were written 27 years ago, in an emergency effort to  redress hardship caused by a world-wide depression. They were  continued--and their economic distortions intensified--during World War II  in order to provide incentives for production of food needed to sustain a  war-torn free world.  
1960-76	1960	Today our farm problem is totally different. It is that of effectively  adjusting to the changes caused by a scientific revolution. When the  original farm laws were written, an hour's farm labor produced only one  fourth as much wheat as at present. Farm legislation is woefully  out-of-date, ineffective, and expensive.  
1960-77	1960	For years we have gone on with an outmoded system which not only has failed  to protect farm income, but also has produced soaring, threatening  surpluses. Our farms have been left producing for war while America has  long been at peace.  
1960-78	1960	Once again I urge Congress to enact legislation that will gear production  more closely to markets, make costly surpluses more manageable, provide  greater freedom in farm operations, and steadily achieve increased net farm  incomes.  
1960-79	1960	Another issue that we must meet squarely is that of living within our  means. This requires restraint in expenditure, constant reassessment of  priorities, and the maintenance of stable prices.  
1960-80	1960	We must prevent inflation. Here is an opponent of so many guises that it is  sometimes difficult to recognize. But our clear need is to stop continuous  and general price rises--a need that all of us can see and feel.  
1960-81	1960	To prevent steadily rising costs and prices calls for stern self-discipline  by every citizen. No person, city, state, or organized group can afford to  evade the obligation to resist inflation, for every American pays its  crippling tax.  
1960-82	1960	Inflation's ravages do not end at the water's edge. Increases in prices of  the goods we sell abroad threaten to drive us out of markets that once were  securely ours. Whether domestic prices, so high as to be noncompetitive,  result from demands for too-high profit margins or from increased labor  costs that outrun growth in productivity, the final result is seriously  damaging to the nation.  
1960-83	1960	We must fight inflation as we would a fire that imperils our home. Only by  so doing can we prevent it from destroying our salaries, savings, pensions  and insurance, and from gnawing away the very roots of a free, healthy  economy and the nation's security.  
1960-84	1960	One major method by which the Federal government can counter inflation and  rising prices is to insure that its expenditures are below its revenues.  The debt with which we are now confronted is about 290 billion dollars.  With interest charges alone now costing taxpayers about 9 1/2 billions, it  is clear that this debt growth must stop. You will be glad to know that  despite the unsettling influences of the recent steel strike, we estimate  that our accounts will show, on June 30, this year, a favorable balance of  approximately $200 million.  
1960-85	1960	I shall present to the Congress for 1961 a balanced budget. In the area of  defense, expenditures continue at the record peace-time levels of the last  several years. With a single exception, expenditures in every major  category of Health, Education and Welfare will be equal or greater than  last year. In Space expenditures the amounts are practically doubled. But  the over-all guiding goal of this budget is national need-not response to  specific group, local or political insistence.  
1960-86	1960	Expenditure increases, other than those I have indicated, are largely  accounted for by the increased cost of legislation previously enacted.[1]  
1960-87	1960	[Footnote 1: At this point the President interpolated the two paragraphs  shown in brackets.]  
1960-88	1960	[I repeat, this budget will be a balanced one. Expenditures will be 79  billion 8 hundred million. The amount of income over outgo, described  in the budget as a Surplus, to be applied against our national debt, is  4 billion 2 hundred million. Personally, I do not feel that any amount can  be properly called a "Surplus" as long as the nation is in debt. I prefer  to think of such an item as "reduction on our children's inherited  mortgage." Once we have established such payments as normal practice, we  can profitably make improvements in our tax structure and thereby truly  reduce the heavy burdens of taxation.  
1960-89	1960	[In any event, this one reduction will save taxpayers, each year,  approximately 2 hundred million dollars in interest costs.]  
1960-90	1960	This budget will help ease pressures in our credit and capital markets. It  will enhance the confidence of people all over the world in the strength of  our economy and our currency and in our individual and collective ability  to be fiscally responsible.  
1960-91	1960	In the management of the huge public debt the Treasury is unfortunately not  free of artificial barriers. Its ability to deal with the difficult  problems in this field has been weakened greatly by the unwillingness of  the Congress to remove archaic restrictions. The need for a freer hand in  debt management is even more urgent today because the costs of the  undesirable financing practices which the Treasury has been forced into are  mounting. Removal of this roadblock has high priority in my legislative  recommendations.  
1960-92	1960	Still another issue relates to civil rights.  
1960-93	1960	In all our hopes and plans for a better world we all recognize that  provincial and racial prejudices must be combatted. In the long perspective  of history, the right to vote has been one of the strongest pillars of a  free society. Our first duty is to protect this right against all  encroachment. In spite of constitutional guarantees, and notwithstanding  much progress of recent years, bias still deprives some persons in this  country of equal protection of the laws.  
1960-94	1960	Early in your last session I recommended legislation which would help  eliminate several practices discriminating against the basic rights of  Americans. The Civil Rights Commission has developed additional  constructive recommendations. I hope that these will be among the matters  to be seriously considered in the current session. I trust that Congress  will thus signal to the world that our Government is striving for equality  under law for all our people.  
1960-95	1960	Each year and in many ways our nation continues to undergo profound change  and growth.  
1960-96	1960	In the past 18 months we have hailed the entry of two more States of the  Union--Alaska and Hawaii. We salute these two western stars proudly.  
1960-97	1960	Our vigorous expansion, which we all welcome as a sign of health and  vitality, is many-sided. We are, for example, witnessing explosive growth  in metropolitan areas.  
1960-98	1960	By 1975 the metropolitan areas of the United States will occupy twice the  territory they do today. The roster of urban problems with which they must  cope is staggering. They involve water supply, cleaning the air, adjusting  local tax systems, providing for essential educational, cultural, and  social services, and destroying those conditions which breed delinquency  and crime.  
1960-99	1960	In meeting these, we must, if we value our historic freedoms, keep within  the traditional framework of our Federal system with powers divided between  the national and state governments. The uniqueness of this system may  confound the casual observer, but it has worked effectively for nearly 200  years.  
1960-100	1960	I do not doubt that our urban and other perplexing problems can be solved  in the traditional American method. In doing so we must realize that  nothing is really solved and ruinous tendencies are set in motion by  yielding to the deceptive bait of the "easy" Federal tax dollar.  
1960-101	1960	Our educational system provides a ready example. All recognize the vital  necessity of having modern school plants, well-qualified and adequately  compensated teachers, and of using the best possible teaching techniques  and curricula.  
1960-102	1960	We cannot be complacent about educating our youth.  
1960-103	1960	But the route to better trained minds is not through the swift  administration of a Federal hypodermic or sustained financial transfusion.  The educational process, essentially a local and personal responsibility,  cannot be made to leap ahead by crash, centralized governmental action.  
1960-104	1960	The Administration has proposed a carefully reasoned program for helping  eliminate current deficiencies. It is designed to stimulate classroom  construction, not by substitution of Federal dollars for state and local  funds, but by incentives to extend and encourage state and local efforts.  This approach rejects the notion of Federal domination or control. It is  workable, and should appeal to every American interested in advancement of  our educational system in the traditional American way. I urge the Congress  to take action upon it.  
1960-105	1960	There is one other subject concerning which I renew a recommendation I made  in my State of the Union Message last January. I then advised the Congress  of my purpose to intensify our efforts to replace force with a rule of law  among nations. From many discussions abroad, I am convinced that purpose is  widely and deeply shared by other peoples and nations of the world.  
1960-106	1960	In the same Message I stated that our efforts would include a reexamination  of our own relation to the International Court of Justice. The Court was  established by the United Nations to decide international legal disputes  between nations. In 1946 we accepted the Court's jurisdiction, but subject  to a reservation of the right to determine unilaterally whether a matter  lies essentially within domestic jurisdiction. There is pending before the  Senate, a Resolution which would repeal our present self-judging  reservation. I support that Resolution and urge its prompt passage. If this  is done, I intend to urge similar acceptance of the Court's jurisdiction by  every member of the United Nations.  
1960-107	1960	Here perhaps it is not amiss for me to say to the Members of the Congress,  in this my final year of office, a word about the institutions we  respectively represent and the meaning which the relationships between our  two branches has for the days ahead.  
1960-108	1960	I am not unique as a President in having worked with a Congress controlled  by the opposition party--except that no other President ever did it for  quite so long! Yet in both personal and official relationships we have  weathered the storms of the past five years. For this I am grateful.  
1960-109	1960	My deep concern in the next twelve months, before my successor takes  office, is with our joint Congressional-Executive duty to our own and to  other nations. Acting upon the beliefs I have expressed here today, I shall  devote my full energies to the tasks at hand, whether these involve travel  for promoting greater world understanding, negotiations to reduce  international discord, or constant discussions and communications with the  Congress and the American people on issues both domestic and foreign.  
1960-110	1960	In pursuit of these objectives, I look forward to, and shall dedicate  myself to, a close and constructive association with the Congress.  
1960-111	1960	Every minute spent in irrelevant interbranch wrangling is precious time  taken from the intelligent initiation and adoption of coherent policies for  our national survival and progress.  
1960-112	1960	We seek a common goal--brighter opportunity for our own citizens and a  world peace with justice for all.  
1960-113	1960	Before us and our friends is the challenge of an ideology which, for more  than four decades, has trumpeted abroad its purpose of gaining ultimate  victory over all forms of government at variance with its own.  
1960-114	1960	We realize that however much we repudiate the tenets of imperialistic  Communism, it represents a gigantic enterprise grimly pursued by leaders  who compel its subjects to subordinate their freedom of action and spirit  and personal desires for some hoped-for advantage in the future.  
1960-115	1960	The Communists can present an array of material accomplishments over the  past fifteen years that lends a false persuasiveness to many of their  glittering promises to the uncommitted peoples.  
1960-116	1960	The competition they provide is formidable.  
1960-117	1960	But in our scale of values we place freedom first--our whole national  existence and development have been geared to that basic concept and are  responsible for the position of free world leadership to which we have  succeeded. It is the highest prize that any nation can possess; it is one  that Communism can never offer. And America's record of material  accomplishment in freedom is written not only in the unparalleled  prosperity of our own nation, but in the many billions we have devoted to  the reconstruction of Free World economics wrecked by World War II and in  the effective help of many more billions we have given in saving the  independence of many others threatened by outside domination. Assuredly we  have the capacity for handling the problems in the new era of the world's  history we are now entering.  
1960-118	1960	But we must use that capacity intelligently and tirelessly, regardless of  personal sacrifice.  
1960-119	1960	The fissure that divides our political planet is deep and wide.  
1960-120	1960	We live, moreover, in a sea of semantic disorder in which old labels no  longer faithfully describe.  
1960-121	1960	Police states are called "people's democracies."  
1960-122	1960	Armed conquest of free people is called "liberation."  
1960-123	1960	Such slippery slogans make more difficult the problem of communicating true  faith, facts and beliefs.  
1960-124	1960	We must make clear our peaceful intentions, our aspirations for a better  world. So doing, we must use language to enlighten the mind, not as the  instrument of the studied innuendo and distorter of truth.  
1960-125	1960	And we must live by what we say.  
1960-126	1960	On my recent visit to distant lands I found one statesman after another  eager to tell me of the elements of their government that had been borrowed  from our American Constitution, and from the indestructible ideals set  forth in our Declaration of Independence.  
1960-127	1960	As a nation we take pride that our own constitutional system, and the  ideals which sustain it, have been long viewed as a fountainhead of  freedom.  
1960-128	1960	By our every action we must strive to make ourselves worthy of this trust,  ever mindful that an accumulation of seemingly minor encroachments upon  freedom gradually could break down the entire fabric of a free society.  
1960-129	1960	So persuaded, we shall get on with the task before us.  
1960-130	1960	So dedicated, and with faith in the Almighty, humanity shall one day  achieve the unity in freedom to which all men have aspired from the dawn of  time.  
1960-131	1960	The Address as reported from the floor appears in the Congressional Record  of January 7, 1960 (vol. 106, p. 135).  
1961-1	1961	Mr. Speaker, Mr. Vice President, Members of the Congress:  
1961-2	1961	It is a pleasure to return from whence I came. You are among my oldest  friends in Washington--and this House is my oldest home. It was here, more  than 14 years ago, that I first took the oath of Federal office. It was  here, for 14 years, that I gained both knowledge and inspiration from  members of both parties in both Houses--from your wise and generous  leaders--and from the pronouncements which I can vividly recall, sitting  where you now sit--including the programs of two great Presidents, the  undimmed eloquence of Churchill, the soaring idealism of Nehru, the  steadfast words of General de Gaulle. To speak from this same historic  rostrum is a sobering experience. To be back among so many friends is a  happy one.  
1961-3	1961	I am confident that that friendship will continue. Our Constitution wisely  assigns both joint and separate roles to each branch of the government; and  a President and a Congress who hold each other in mutual respect will  neither permit nor attempt any trespass. For my part, I shall withhold from  neither the Congress nor the people any fact or report, past, present, or  future, which is necessary for an informed judgment of our conduct and  hazards. I shall neither shift the burden of executive decisions to the  Congress, nor avoid responsibility for the outcome of those decisions.  
1961-4	1961	I speak today in an hour of national peril and national opportunity. Before  my term has ended, we shall have to test anew whether a nation organized  and governed such as ours can endure. The outcome is by no means certain.  The answers are by no means clear. All of us together--this Administration,  this Congress, this nation--must forge those answers.  
1961-5	1961	But today, were I to offer--after little more than a week in  office--detailed legislation to remedy every national ill, the Congress  would rightly wonder whether the desire for speed had replaced the duty of  responsibility.  
1961-6	1961	My remarks, therefore, will be limited. But they will also be candid. To  state the facts frankly is not to despair the future nor indict the past.  The prudent heir takes careful inventory of his legacies, and gives a  faithful accounting to those whom he owes an obligation of trust. And,  while the occasion does not call for another recital of our blessings and  assets, we do have no greater asset than the willingness of a free and  determined people, through its elected officials, to face all problems  frankly and meet all dangers free from panic or fear.  
1961-7	1961	I.  
1961-8	1961	The present state of our economy is disturbing. We take office in the wake  of seven months of recession, three and one-half years of slack, seven  years of diminished economic growth, and nine years of falling farm  income.  
1961-9	1961	Business bankruptcies have reached their highest level since the Great  Depression. Since 1951 farm income has been squeezed down by 25 percent.  Save for a brief period in 1958, insured unemployment is at the highest  peak in our history. Of some five and one-half million Americans who are  without jobs, more than one million have been searching for work for more  than four months. And during each month some 150,000 workers are exhausting  their already meager jobless benefit rights.  
1961-10	1961	Nearly one-eighth of those who are without jobs live almost without hope  in nearly one hundred especially depressed and troubled areas. The rest  include new school graduates unable to use their talents, farmers forced to  give up their part-time jobs which helped balance their family budgets,  skilled and unskilled workers laid off in such important industries as  metals, machinery, automobiles and apparel.  
1961-11	1961	Our recovery from the 1958 recession, moreover, was anemic and incomplete.  Our Gross National Product never regained its full potential. Unemployment  never returned to normal levels. Maximum use of our national industrial  capacity was never restored.  
1961-12	1961	In short, the American economy is in trouble. The most resourceful  industrialized country on earth ranks among the last in the rate of  economic growth. Since last spring our economic growth rate has actually  receded. Business investment is in a decline. Profits have fallen below  predicted levels. Construction is off. A million unsold automobiles are in  inventory. Fewer people are working--and the average work week has shrunk  well below 40 hours. Yet prices have continued to rise--so that now too  many Americans have less to spend for items that cost more to buy.  
1961-13	1961	Economic prophecy is at best an uncertain art--as demonstrated by the  prediction one year ago from this same podium that 1960 would be, and I  quote, "the most prosperous year in our history." Nevertheless, forecasts  of continued slack and only slightly reduced unemployment through 1961 and  1962 have been made with alarming unanimity--and this Administration does  not intend to stand helplessly by.  
1961-14	1961	We cannot afford to waste idle hours and empty plants while awaiting the  end of the recession. We must show the world what a free economy can do--to  reduce unemployment, to put unused capacity to work, to spur new  productivity, and to foster higher economic growth within a range of sound  fiscal policies and relative price stability.  
1961-15	1961	I will propose to the Congress within the next 14 days measures to improve  unemployment compensation through temporary increases in duration on a  self-supporting basis--to provide more food for the families of the  unemployed, and to aid their needy children--to redevelop our areas of  chronic labor surplus--to expand the services of the U.S. Employment  Offices--to stimulate housing and construction--to secure more purchasing  power for our lowest paid workers by raising and expanding the minimum  wage--to offer tax incentives for sound plant investment--to increase the  development of our natural resources--to encourage price stability--and to  take other steps aimed at insuring a prompt recovery and paving the way for  increased long-range growth. This is not a partisan program concentrating  on our weaknesses--it is, I hope, a national program to realize our  national strength.  
1961-16	1961	II.  
1961-17	1961	Efficient expansion at home, stimulating the new plant and technology that  can make our goods more competitive, is also the key to the international  balance of payments problem. Laying aside all alarmist talk and panicky  solutions, let us put that knotty problem in its proper perspective.  
1961-18	1961	It is true that, since 1958, the gap between the dollars we spend or  invest abroad and the dollars returned to us has substantially widened.  This overall deficit in our balance of payments increased by nearly $11  billion in the 3 years--and holders of dollars abroad converted them  to gold in such a quantity as to cause a total outflow of nearly $5  billion of gold from our reserve. The 1959 deficit was caused in large  part by the failure of our exports to penetrate foreign markets--the  result both of restrictions on our goods and our own uncompetitive  prices. The 1960 deficit, on the other hand, was more the result of an  increase in private capital outflow seeking new opportunity, higher  return or speculative advantage abroad.  
1961-19	1961	Meanwhile this country has continued to bear more than its share of the  West's military and foreign aid obligations. Under existing policies,  another deficit of $2 billion is predicted for 1961--and individuals in  those countries whose dollar position once depended on these deficits for  improvement now wonder aloud whether our gold reserves will remain  sufficient to meet our own obligations.  
1961-20	1961	All this is cause for concern--but it is not cause for panic. For our  monetary and financial position remains exceedingly strong. Including our  drawing rights in the International Monetary Fund and the gold reserve held  as backing for our currency and Federal Reserve deposits, we have some $22  billion in total gold stocks and other international monetary reserves  available--and I now pledge that their full strength stands behind the  value of the dollar for use if needed.  
1961-21	1961	Moreover, we hold large assets abroad--the total owed this nation far  exceeds the claims upon our reserves--and our exports once again  substantially exceed our imports.  
1961-22	1961	In short, we need not--and we shall not--take any action to increase the  dollar price of gold from $35 an ounce--to impose exchange controls--to  reduce our anti-recession efforts--to fall back on restrictive trade  policies--or to weaken our commitments around the world.  
1961-23	1961	This Administration will not distort the value of the dollar in any  fashion. And this is a commitment.  
1961-24	1961	Prudence and good sense do require, however, that new steps be taken to  ease the payments deficit and prevent any gold crisis. Our success in world  affairs has long depended in part upon foreign confidence in our ability to  pay. A series of executive orders, legislative remedies and cooperative  efforts with our allies will get underway immediately--aimed at attracting  foreign investment and travel to this country--promoting American exports,  at stable prices and with more liberal government guarantees and  financing--curbing tax and customs loopholes that encourage undue spending  of private dollars abroad--and (through OECD, NATO and otherwise) sharing  with our allies all efforts to provide for the common defense of the free  world and the hopes for growth of the less developed lands. While the  current deficit lasts, ways will be found to ease our dollar outlays abroad  without placing the full burden on the families of men whom we have asked  to serve our Flag overseas.  
1961-25	1961	In short, whatever is required will be done to back up all our efforts  abroad, and to make certain that, in the future as in the past, the dollar  is as "sound as a dollar."  
1961-26	1961	III.  
1961-27	1961	But more than our exchange of international payments is out of balance.  The current Federal budget for fiscal 1961 is almost certain to show a  net deficit. The budget already submitted for fiscal 1962 will remain in  balance only if the Congress enacts all the revenue measures requested--and  only if an earlier and sharper up-turn in the economy than my economic  advisers now think likely produces the tax revenues estimated.  Nevertheless, a new Administration must of necessity build on the spending  and revenue estimates already submitted. Within that framework, barring the  development of urgent national defense needs or a worsening of the economy,  it is my current intention to advocate a program of expenditures which,  including revenues from a stimulation of the economy, will not of and by  themselves unbalance the earlier Budget.  
1961-28	1961	However, we will do what must be done. For our national household is  cluttered with unfinished and neglected tasks. Our cities are being  engulfed in squalor. Twelve long years after Congress declared our goal to  be "a decent home and a suitable environment for every American family," we  still have 25 million Americans living in substandard homes. A new housing  program under a new Housing and Urban Affairs Department will be needed  this year.  
1961-29	1961	Our classrooms contain 2 million more children than they can properly have  room for, taught by 90,000 teachers not properly qualified to teach. One  third of our most promising high school graduates are financially unable to  continue the development of their talents. The war babies of the 1940's,  who overcrowded our schools in the 1950's, are now descending in 1960 upon  our colleges--with two college students for every one, ten years from  now--and our colleges are ill prepared. We lack the scientists, the  engineers and the teachers our world obligations require. We have neglected  oceanography, saline water conversion, and the basic research that lies at  the root of all progress. Federal grants for both higher and public school  education can no longer be delayed.  
1961-30	1961	Medical research has achieved new wonders--but these wonders are too often  beyond the reach of too many people, owing to a lack of income  (particularly among the aged), a lack of hospital beds, a lack of nursing  homes and a lack of doctors and dentists. Measures to provide health care  for the aged under Social Security, and to increase the supply of both  facilities and personnel, must be undertaken this year.  
1961-31	1961	Our supply of clean water is dwindling. Organized and juvenile crimes cost  the taxpayers millions of dollars each year, making it essential that we  have improved enforcement and new legislative safeguards. The denial of  constitutional rights to some of our fellow Americans on account of  race--at the ballot box and elsewhere--disturbs the national conscience,  and subjects us to the charge of world opinion that our democracy is not  equal to the high promise of our heritage. Morality in private business  has not been sufficiently spurred by morality in public business. A host  of problems and projects in all 50 States, though not possible to include  in this Message, deserves--and will receive--the attention of both the  Congress and the Executive Branch. On most of these matters, Messages will  be sent to the Congress within the next two weeks.  
1961-32	1961	IV.  
1961-33	1961	But all these problems pale when placed beside those which confront us  around the world. No man entering upon this office, regardless of his  party, regardless of his previous service in Washington, could fail to be  staggered upon learning--even in this brief 10 day period--the harsh  enormity of the trials through which we must pass in the next four years.  Each day the crises multiply. Each day their solution grows more difficult.  Each day we draw nearer the hour of maximum danger, as weapons spread and  hostile forces grow stronger. I feel I must inform the Congress that our  analyses over the last ten days make it clear that--in each of the  principal areas of crisis--the tide of events has been running out and time  has not been our friend.  
1961-34	1961	In Asia, the relentless pressures of the Chinese Communists menace the  security of the entire area--from the borders of India and South Viet Nam  to the jungles of Laos, struggling to protect its newly-won independence.  We seek in Laos what we seek in all Asia, and, indeed, in all of the  world--freedom for the people and independence for the government. And this  Nation shall persevere in our pursuit of these objectives.  
1961-35	1961	In Africa, the Congo has been brutally torn by civil strife, political  unrest and public disorder. We shall continue to support the heroic  efforts of the United Nations to restore peace and order--efforts which  are now endangered by mounting tensions, unsolved problems, and decreasing  support from many member states.  
1961-36	1961	In Latin America, Communist agents seeking to exploit that region's  peaceful revolution of hope have established a base on Cuba, only 90 miles  from our shores. Our objection with Cuba is not over the people's drive for  a better life. Our objection is to their domination by foreign and domestic  tyrannies. Cuban social and economic reform should be encouraged. Questions  of economic and trade policy can always be negotiated. But Communist  domination in this Hemisphere can never be negotiated.  
1961-37	1961	We are pledged to work with our sister Republics to free the Americas of  all such foreign domination and all tyranny, working toward the goal of a  free hemisphere of free governments, extending from Cape Horn to the Arctic  Circle.  
1961-38	1961	In Europe our alliances are unfulfilled and in some disarray. The unity of  NATO has been weakened by economic rivalry and partially eroded by national  interest. It has not yet fully mobilized its resources nor fully achieved a  common outlook. Yet no Atlantic power can meet on its own the mutual  problems now facing us in defense, foreign aid, monetary reserves, and a  host of other areas; and our close ties with those whose hopes and  interests we share are among this Nation's most powerful assets.  
1961-39	1961	Our greatest challenge is still the world that lies beyond the Cold  War--but the first great obstacle is still our relations with the Soviet  Union and Communist China. We must never be lulled into believing that  either power has yielded its ambitions for world domination--ambitions  which they forcefully restated only a short time ago. On the contrary, our  task is to convince them that aggression and subversion will not be  profitable routes to pursue these ends. Open and peaceful competition--for  prestige, for markets, for scientific achievement, even for men's minds--is  something else again. For if Freedom and Communism were to compete for  man's allegiance in a world at peace, I would look to the future with ever  increasing confidence.  
1961-40	1961	To meet this array of challenges--to fulfill the role we cannot avoid on  the world scene--we must reexamine and revise our whole arsenal of tools:  military, economic and political.  
1961-41	1961	One must not overshadow the other. On the Presidential Coat of Arms, the  American eagle holds in his right talon the olive branch, while in his left  he holds a bundle of arrows. We intend to give equal attention to both.  
1961-42	1961	First, we must strengthen our military tools. We are moving into a period  of uncertain risk and great commitment in which both the military and  diplomatic possibilities require a Free World force so powerful as to make  any aggression clearly futile. Yet in the past, lack of a consistent,  coherent military strategy, the absence of basic assumptions about our  national requirements and the faulty estimates and duplication arising from  inter-service rivalries have all made it difficult to assess accurately how  adequate--or inadequate--our defenses really are.  
1961-43	1961	I have, therefore, instructed the Secretary of Defense to reappraise our  entire defense strategy--our ability to fulfill our commitments--the  effectiveness, vulnerability, and dispersal of our strategic bases, forces  and warning systems--the efficiency and economy of our operation and  organization--the elimination of obsolete bases and installations--and the  adequacy, modernization and mobility of our present conventional and  nuclear forces and weapons systems in the light of present and future  dangers. I have asked for preliminary conclusions by the end of  February--and I then shall recommend whatever legislative, budgetary or  executive action is needed in the light of these conclusions.  
1961-44	1961	In the meantime, I have asked the Defense Secretary to initiate immediately  three new steps most clearly needed now:  
1961-45	1961	First, I have directed prompt attention to increase our air-lift capacity.  Obtaining additional air transport mobility--and obtaining it now--will  better assure the ability of our conventional forces to respond, with  discrimination and speed, to any problem at any spot on the globe at any  moment's notice. In particular it will enable us to meet any deliberate  effort to avoid or divert our forces by starting limited wars in widely  scattered parts of the globe.  
1961-46	1961	(b) I have directed prompt action to step up our Polaris submarine program.  Using unobligated ship-building funds now (to let contracts originally  scheduled for the next fiscal year) will build and place on station--at  least nine months earlier than planned--substantially more units of a  crucial deterrent--a fleet that will never attack first, but possess  sufficient powers of retaliation, concealed beneath the seas, to discourage  any aggressor from launching an attack upon our security.  
1961-47	1961	(c) I have directed prompt action to accelerate our entire missile program.  Until the Secretary of Defense's reappraisal is completed, the emphasis  here will be largely on improved organization and decision-making--on  cutting down the wasteful duplications and the time-lag that have  handicapped our whole family of missiles. If we are to keep the peace, we  need an invulnerable missile force powerful enough to deter any aggressor  from even threatening an attack that he would know could not destroy enough  of our force to prevent his own destruction. For as I said upon taking the  oath of office: "Only when our arms are sufficient beyond doubt can we be  certain beyond doubt that they will never be employed."  
1961-48	1961	Secondly, we must improve our economic tools. Our role is essential and  unavoidable in the construction of a sound and expanding economy for the  entire non-communist world, helping other nations build the strength to  meet their own problems, to satisfy their own aspirations--to surmount  their own dangers. The problems in achieving this goal are towering and  unprecedented--the response must be towering and unprecedented as well,  much as Lend-Lease and the Marshall Plan were in earlier years, which  brought such fruitful results.  
1961-49	1961	(a) I intend to ask the Congress for authority to establish a new and more  effective program for assisting the economic, educational and social  development of other countries and continents. That program must stimulate  and take more effectively into account the contributions of our allies, and  provide central policy direction for all our own programs that now so often  overlap, conflict or diffuse our energies and resources. Such a program,  compared to past programs, will require  
1961-50	1961	--more flexibility for short run emergencies  
1961-51	1961	--more commitment to long term development--new attention to education at  all levels--greater emphasis on the recipient nation's role, their effort,  their purpose, with greater social justice for their people, broader  distribution and participation by their people and more efficient public  administration and more efficient tax systems of their own  
1961-52	1961	--and orderly planning for national and regional development instead of a  piecemeal approach.  
1961-53	1961	I hope the Senate will take early action approving the Convention  establishing the Organization for Economic Cooperation and Development.  This will be an important instrument in sharing with our allies this  development effort--working toward the time when each nation will  contribute in proportion to its ability to pay. For, while we are prepared  to assume our full share of these huge burdens, we cannot and must not be  expected to bear them alone.  
1961-54	1961	To our sister republics to the south, we have pledged a new alliance for  progress--alianza para progreso. Our goal is a free and prosperous Latin  America, realizing for all its states and all its citizens a degree of  economic and social progress that matches their historic contributions of  culture, intellect and liberty. To start this nation's role at this time in  that alliance of neighbors, I am recommending the following:  
1961-55	1961	--That the Congress appropriate in full the $500 million fund pledged by  the Act of Bogota, to be used not as an instrument of the Cold War, but as  a first step in the sound development of the Americas.  
1961-56	1961	--That a new Inter-Departmental Task Force be established under the  leadership of the Department of State, to coordinate at the highest level  all policies and programs of concern to the Americas.  
1961-57	1961	--That our delegates to the OAS, working with those of other members,  strengthen that body as an instrument to preserve the peace and to prevent  foreign domination anywhere in the Hemisphere.  
1961-58	1961	--That, in cooperation with other nations, we launch a new hemispheric  attack on illiteracy and inadequate educational opportunities to all  levels; and, finally,  
1961-59	1961	--That a Food-for-Peace mission be sent immediately to Latin America to  explore ways in which our vast food abundance can be used to help end  hunger and malnutrition in certain areas of suffering in our own  hemisphere.  
1961-60	1961	This Administration is expanding its Food-for-Peace Program in every  possible way. The product of our abundance must be used more effectively to  relieve hunger and help economic growth in all corners of the globe. And I  have asked the Director of this Program to recommend additional ways in  which these surpluses can advance the interests of world peace--including  the establishment of world food reserves.  
1961-61	1961	An even more valuable national asset is our reservoir of dedicated men and  women--not only on our college campuses but in every age group--who have  indicated their desire to contribute their skills, their efforts, and a  part of their lives to the fight for world order. We can mobilize this  talent through the formation of a National Peace Corps, enlisting the  services of all those with the desire and capacity to help foreign lands  meet their urgent needs for trained personnel.  
1961-62	1961	Finally, while our attention is centered on the development of the non-  communist world, we must never forget our hopes for the ultimate freedom  and welfare of the Eastern European peoples. In order to be prepared to  help re-establish historic ties of friendship, I am asking the Congress  for increased discretion to use economic tools in this area whenever  this is found to be clearly in the national interest. This will require  amendment of the Mutual Defense Assistance Control Act along the lines I  proposed as a member of the Senate, and upon which the Senate voted last  summer. Meanwhile, I hope to explore with the Polish government the  possibility of using our frozen Polish funds on projects of peace that  will demonstrate our abiding friendship for and interest in the people  of Poland.  
1961-63	1961	Third, we must sharpen our political and diplomatic tools--the means of  cooperation and agreement on which an enforceable world order must  ultimately rest.  
1961-64	1961	I have already taken steps to coordinate and expand our disarmament  effort--to increase our programs of research and study--and to make arms  control a central goal of our national policy under my direction. The  deadly arms race, and the huge resources it absorbs, have too long  overshadowed all else we must do. We must prevent that arms race from  spreading to new nations, to new nuclear powers and to the reaches of outer  space. We must make certain that our negotiators are better informed and  better prepared--to formulate workable proposals of our own and to make  sound judgments about the proposals of others.  
1961-65	1961	I have asked the other governments concerned to agree to a reasonable delay  in the talks on a nuclear test ban--and it is our intention to resume  negotiations prepared to reach a final agreement with any nation that is  equally willing to agree to an effective and enforceable treaty.  
1961-66	1961	We must increase our support of the United Nations as an instrument to end  the Cold War instead of an arena in which to fight it. In recognition of  its increasing importance and the doubling of its membership  
1961-67	1961	--we are enlarging and strengthening our own mission to the U.N.  
1961-68	1961	--we shall help insure that it is properly financed.  
1961-69	1961	--we shall work to see that the integrity of the office of the  Secretary-General is maintained.  
1961-70	1961	--And I would address a special plea to the smaller nations of the  world--to join with us in strengthening this organization, which is far  more essential to their security than it is to ours--the only body in the  world where no nation need be powerful to be secure, where every nation has  an equal voice, and where any nation can exert influence not according to  the strength of its armies but according to the strength of its ideas. It  deserves the support of all.  
1961-71	1961	Finally, this Administration intends to explore promptly all possible areas  of cooperation with the Soviet Union and other nations "to invoke the  wonders of science instead of its terrors." Specifically, I now invite all  nations--including the Soviet Union--to join with us in developing a  weather prediction program, in a new communications satellite program and  in preparation for probing the distant planets of Mars and Venus, probes  which may someday unlock the deepest secrets of the universe.  
1961-72	1961	Today this country is ahead in the science and technology of space, while  the Soviet Union is ahead in the capacity to lift large vehicles into  orbit. Both nations would help themselves as well as other nations by  removing these endeavors from the bitter and wasteful competition of the  Cold War. The United States would be willing to join with the Soviet Union  and the scientists of all nations in a greater effort to make the fruits  of this new knowledge available to all--and, beyond that, in an effort to  extend farm technology to hungry nations--to wipe out disease--to increase  the exchanges of scientists and their knowledge--and to make our own  laboratories available to technicians of other lands who lack the  facilities to pursue their own work. Where nature makes natural allies of  us all, we can demonstrate that beneficial relations are possible even  with those with whom we most deeply disagree--and this must someday be the  basis of world peace and world law.  
1961-73	1961	V.  
1961-74	1961	I have commented on the state of the domestic economy, our balance of  payments, our Federal and social budget and the state of the world. I would  like to conclude with a few remarks about the state of the Executive  branch. We have found it full of honest and useful public servants--but  their capacity to act decisively at the exact time action is needed has too  often been muffled in the morass of committees, timidities and fictitious  theories which have created a growing gap between decision and execution,  between planning and reality. In a time of rapidly deteriorating situations  at home and abroad, this is bad for the public service and particularly bad  for the country; and we mean to make a change.  
1961-75	1961	I have pledged myself and my colleagues in the cabinet to a continuous  encouragement of initiative, responsibility and energy in serving the  public interest. Let every public servant know, whether his post is high or  low, that a man's rank and reputation in this Administration will be  determined by the size of the job he does, and not by the size of his  staff, his office or his budget. Let it be clear that this Administration  recognizes the value of dissent and daring--that we greet healthy  controversy as the hallmark of healthy change. Let the public service be a  proud and lively career. And let every man and woman who works in any area  of our national government, in any branch, at any level, be able to say  with pride and with honor in future years: "I served the United States  government in that hour of our nation's need."  
1961-76	1961	For only with complete dedication by us all to the national interest can we  bring our country through the troubled years that lie ahead. Our problems  are critical. The tide is unfavorable. The news will be worse before it is  better. And while hoping and working for the best, we should prepare  ourselves now for the worst.  
1961-77	1961	We cannot escape our dangers--neither must we let them drive us into panic  or narrow isolation. In many areas of the world where the balance of power  already rests with our adversaries, the forces of freedom are sharply  divided. It is one of the ironies of our time that the techniques of a  harsh and repressive system should be able to instill discipline and ardor  in its servants--while the blessings of liberty have too often stood for  privilege, materialism and a life of ease.  
1961-78	1961	But I have a different view of liberty.  
1961-79	1961	Life in 1961 will not be easy. Wishing it, predicting it, even asking for  it, will not make it so. There will be further setbacks before the tide is  turned. But turn it we must. The hopes of all mankind rest upon us--not  simply upon those of us in this chamber, but upon the peasant in Laos, the  fisherman in Nigeria, the exile from Cuba, the spirit that moves every man  and Nation who shares our hopes for freedom and the future. And in the  final analysis, they rest most of all upon the pride and perseverance of  our fellow citizens of the great Republic.  
1961-80	1961	In the words of a great President, whose birthday we honor today, closing  his final State of the Union Message sixteen years ago, "We pray that we  may be worthy of the unlimited opportunities that God has given us."  
1962-1	1962	Mr. Vice President, my old colleague from Massachusetts and your new  Speaker, John McCormack, Members of the 87th Congress, ladies and  gentlemen:  
1962-2	1962	This week we begin anew our joint and separate efforts to build the  American future. But, sadly, we build without a man who linked a long past  with the present and looked strongly to the future. "Mister Sam" Rayburn is  gone. Neither this House nor the Nation is the same without him.  
1962-3	1962	Members of the Congress, the Constitution makes us not rivals for power but  partners for progress. We are all trustees for the American people,  custodians of the American heritage. It is my task to report the State of  the Union--to improve it is the task of us all.  
1962-4	1962	In the past year, I have traveled not only across our own land but to  other lands--to the North and the South, and across the seas. And I have  found--as I am sure you have, in your travels--that people everywhere,  in spite of occasional disappointments, look to us--not to our wealth or  power, but to the splendor of our ideals. For our Nation is commissioned  by history to be either an observer of freedom's failure or the cause of  its success. Our overriding obligation in the months ahead is to fulfill  the world's hopes by fulfilling our own faith.  
1962-5	1962	I. STRENGTHENING THE ECONOMY  
1962-6	1962	That task must begin at home. For if we cannot fulfill our own ideals here,  we cannot expect others to accept them. And when the youngest child alive  today has grown to the cares of manhood, our position in the world will  be determined first of all by what provisions we make today--for his  education, his health, and his opportunities for a good home and a good  job and a good life.  
1962-7	1962	At home, we began the year in the valley of recession--we completed it on  the high road of recovery and growth. With the help of new Congressionally  approved or Administratively increased stimulants to our economy, the  number of major surplus labor areas has declined from 101 to 60;  non-agricultural employment has increased by more than a million jobs; and  the average factory work-week has risen to well over 40 hours. At year's  end the economy which Mr. Khrushchev once called a "stumbling horse" was  racing to new records in consumer spending, labor income, and industrial  production.  
1962-8	1962	We are gratified--but we are not satisfied. Too many unemployed are still  looking for the blessings of prosperity. As those who leave our schools and  farms demand new jobs, automation takes old jobs away. To expand our growth  and job opportunities, I urge on the Congress three measures:  
1962-9	1962	(1) First, the Manpower Training and Development Act, to stop the waste of  able-bodied men and women who want to work, but whose only skill has been  replaced by a machine, or moved with a mill, or shut down with a mine;  
1962-10	1962	(2) Second, the Youth Employment Opportunities Act, to help train and place  not only the one million young Americans who are both out of school and out  of work, but the twenty-six million young Americans entering the labor  market in this decade; and  
1962-11	1962	(3) Third, the 8 percent tax credit for investment in machinery and  equipment, which, combined with planned revisions of depreciation  allowances, will spur our modernization, our growth, and our ability to  compete abroad.  
1962-12	1962	Moreover--pleasant as it may be to bask in the warmth of recovery--let us  not forget that we have suffered three recessions in the last 7 years. The  time to repair the roof is when the sun is shining--by filling three basic  gaps in our anti-recession protection. We need:  
1962-13	1962	(1) First, Presidential stand-by authority, subject to Congressional veto,  to adjust personal income tax rates downward within a specified range and  time, to slow down an economic decline before it has dragged us all down;  
1962-14	1962	(2) Second, Presidential stand-by authority, upon a given rise in the rate  of unemployment, to accelerate Federal and federally-aided capital  improvement programs; and  
1962-15	1962	(3) Third, a permanent strengthening of our unemployment compensation  system--to maintain for our fellow citizens searching for a job who cannot  find it, their purchasing power and their living standards without constant  resort--as we have seen in recent years by the Congress and the  Administrations--to temporary supplements.  
1962-16	1962	If we enact this six-part program, we can show the whole world that a free  economy need not be an unstable economy--that a free system need not leave  men unemployed--and that a free society is not only the most productive but  the most stable form of organization yet fashioned by man.  
1962-17	1962	II. FIGHTING INFLATION  
1962-18	1962	But recession is only one enemy of a free economy--inflation is another.  Last year, 1961, despite rising production and demand, consumer prices held  almost steady--and wholesale prices declined. This is the best record of  overall price stability of any comparable period of recovery since the end  of World War II.  
1962-19	1962	Inflation too often follows in the shadow of growth--while price stability  is made easy by stagnation or controls. But we mean to maintain both  stability and growth in a climate of freedom.  
1962-20	1962	Our first line of defense against inflation is the good sense and public  spirit of business and labor--keeping their total increases in wages and  profits in step with productivity. There is no single statistical test to  guide each company and each union. But I strongly urge them--for their  country's interest, and for their own--to apply the test of the public  interest to these transactions.  
1962-21	1962	Within this same framework of growth and wage-price stability:  
1962-22	1962	--This administration has helped keep our economy competitive by widening  the access of small business to credit and Government contracts, and by  stepping up the drive against monopoly, price-fixing, and racketeering;  
1962-23	1962	--We will submit a Federal Pay Reform bill aimed at giving our classified,  postal, and other employees new pay scales more comparable to those of  private industry;  
1962-24	1962	--We are holding the fiscal 1962 budget deficit far below the level  incurred after the last recession in 1958; and, finally,  
1962-25	1962	--I am submitting for fiscal 1963 a balanced Federal Budget.  
1962-26	1962	This is a joint responsibility, requiring Congressional cooperation on  appropriations, and on three sources of income in particular:  
1962-27	1962	(1) First, an increase in postal rates, to end the postal deficit;  
1962-28	1962	(2) Second, passage of the tax reforms previously urged, to remove  unwarranted tax preferences, and to apply to dividends and to interest the  same withholding requirements we have long applied to wages; and  
1962-29	1962	(3) Third, extension of the present excise and corporation tax rates,  except for those changes--which will be recommended in a message--affecting  transportation.  
1962-30	1962	III. GETTING AMERICA MOVING  
1962-31	1962	But a stronger nation and economy require more than a balanced Budget. They  require progress in those programs that spur our growth and fortify our  strength.  
1962-32	1962	CITIES  
1962-33	1962	A strong America depends on its cities--America's glory, and sometimes  America's shame. To substitute sunlight for congestion and progress for  decay, we have stepped up existing urban renewal and housing programs, and  launched new ones--redoubled the attack on water pollution--speeded aid to  airports, hospitals, highways, and our declining mass transit systems--and  secured new weapons to combat organized crime, racketeering, and youth  delinquency, assisted by the coordinated and hard-hitting efforts of our  investigative services: the FBI, the Internal Revenue, the Bureau of  Narcotics, and many others. We shall need further anti-crime, mass transit,  and transportation legislation--and new tools to fight air pollution. And  with all this effort under way, both equity and common sense require that  our nation's urban areas--containing three-fourths of our population--sit  as equals at the Cabinet table. I urge a new Department of Urban Affairs  and Housing.  
1962-34	1962	AGRICULTURE AND RESOURCES  
1962-35	1962	A strong America also depends on its farms and natural resources. American  farmers took heart in 1961--from a billion dollar rise in farm income--and  from a hopeful start on reducing the farm surpluses. But we are still  operating under a patchwork accumulation of old laws, which cost us $1  billion a year in CCC carrying charges alone, yet fail to halt rural  poverty or boost farm earnings.  
1962-36	1962	Our task is to master and turn to fully fruitful ends the magnificent  productivity of our farms and farmers. The revolution on our own  countryside stands in the sharpest contrast to the repeated farm failures  of the Communist nations and is a source of pride to us all. Since 1950 our  agricultural output per man-hour has actually doubled! Without new,  realistic measures, it will someday swamp our farmers and our taxpayers in  a national scandal or a farm depression.  
1962-37	1962	I will, therefore, submit to the Congress a new comprehensive farm  program--tailored to fit the use of our land and the supplies of each crop  to the long-range needs of the sixties--and designed to prevent chaos in  the sixties with a program of common sense.  
1962-38	1962	We also need for the sixties--if we are to bequeath our full national  estate to our heirs--a new long-range conservation and recreation  program--expansion of our superb national parks and forests--preservation  of our authentic wilderness areas--new starts on water and power projects  as our population steadily increases--and expanded REA generation and  transmission loans.  
1962-39	1962	CIVIL RIGHTS  
1962-40	1962	But America stands for progress in human rights as well as economic  affairs, and a strong America requires the assurance of full and equal  rights to all its citizens, of any race or of any color. This  Administration has shown as never before how much could be done through the  full use of Executive powers--through the enforcement of laws already  passed by the Congress--through persuasion, negotiation, and litigation, to  secure the constitutional rights of all: the right to vote, the right to  travel without hindrance across State lines, and the right to free public  education.  
1962-41	1962	I issued last March a comprehensive order to guarantee the right to equal  employment opportunity in all Federal agencies and contractors. The Vice  President's Committee thus created has done much, including the voluntary  "Plans for Progress" which, in all sections of the country, are achieving a  quiet but striking success in opening up to all races new professional,  supervisory, and other job opportunities.  
1962-42	1962	But there is much more to be done--by the Executive, by the courts, and by  the Congress. Among the bills now pending before you, on which the  executive departments will comment in detail, are appropriate methods of  strengthening these basic rights which have our full support. The right to  vote, for example, should no longer be denied through such arbitrary  devices on a local level, sometimes abused, such as literacy tests and poll  taxes. As we approach the 100th anniversary, next January, of the  Emancipation Proclamation, let the acts of every branch of the  Government--and every citizen--portray that "righteousness does exalt a  nation."  
1962-43	1962	HEALTH AND WELFARE  
1962-44	1962	Finally, a strong America cannot neglect the aspirations of its  citizens--the welfare of the needy, the health care of the elderly, the  education of the young. For we are not developing the Nation's wealth for  its own sake. Wealth is the means--and people are the ends. All our  material riches will avail us little if we do not use them to expand the  opportunities of our people.  
1962-45	1962	Last year, we improved the diet of needy people--provided more hot lunches  and fresh milk to school children--built more college dormitories--and, for  the elderly, expanded private housing, nursing homes, health services, and  social security. But we have just begun.  
1962-46	1962	To help those least fortunate of all, I am recommending a new public  welfare program, stressing services instead of support, rehabilitation  instead of relief, and training for useful work instead of prolonged  dependency.  
1962-47	1962	To relieve the critical shortage of doctors and dentists--and this is a  matter which should concern us all--and expand research, I urge action to  aid medical and dental colleges and scholarships and to establish new  National Institutes of Health.  
1962-48	1962	To take advantage of modern vaccination achievements, I am proposing a mass  immunization program, aimed at the virtual elimination of such ancient  enemies of our children as polio, diphtheria, whooping cough, and tetanus.  
1962-49	1962	To protect our consumers from the careless and the unscrupulous, I shall  recommend improvements in the Food and Drug laws--strengthening inspection  and standards, halting unsafe and worthless products, preventing misleading  labels, and cracking down on the illicit sale of habit-forming drugs.  
1962-50	1962	But in matters of health, no piece of unfinished business is more important  or more urgent than the enactment under the social security system of  health insurance for the aged.  
1962-51	1962	For our older citizens have longer and more frequent illnesses, higher  hospital and medical bills and too little income to pay them. Private  health insurance helps very few--for its cost is high and its coverage  limited. Public welfare cannot help those too proud to seek relief but  hard-pressed to pay their own bills. Nor can their children or  grandchildren always sacrifice their own health budgets to meet this  constant drain.  
1962-52	1962	Social security has long helped to meet the hardships of retirement, death,  and disability. I now urge that its coverage be extended without further  delay to provide health insurance for the elderly.  
1962-53	1962	EDUCATION  
1962-54	1962	Equally important to our strength is the quality of our education. Eight  million adult Americans are classified as functionally illiterate. This is  a disturbing figure--reflected in Selective Service rejection  rates--reflected in welfare rolls and crime rates. And I shall recommend  plans for a massive attack to end this adult illiteracy.  
1962-55	1962	I shall also recommend bills to improve educational quality, to stimulate  the arts, and, at the college level, to provide Federal loans for the  construction of academic facilities and Federally financed scholarships.  
1962-56	1962	If this Nation is to grow in wisdom and strength, then every able high  school graduate should have the opportunity to develop his talents. Yet  nearly half lack either the funds or the facilities to attend college.  Enrollments are going to double in our colleges in the short space of 10  years. The annual cost per student is skyrocketing to astronomical  levels--now averaging $1,650 a year, although almost half of our families  earn less than $5,000. They cannot afford such costs--but this Nation  cannot afford to maintain its military power and neglect its brainpower.  
1962-57	1962	But excellence in education must begin at the elementary level. I sent to  the Congress last year a proposal for Federal aid to public school  construction and teachers' salaries. I believe that bill, which passed the  Senate and received House Committee approval, offered the minimum amount  required by our needs and--in terms of across-the-board aid--the maximum  scope permitted by our Constitution. I therefore see no reason to weaken or  withdraw that bill: and I urge its passage at this session.  
1962-58	1962	"Civilization," said H. G. Wells, "is a race between education and  catastrophe." It is up to you in this Congress to determine the winner of  that race.  
1962-59	1962	These are not unrelated measures addressed to specific gaps or grievances  in our national life. They are the pattern of our intentions and the  foundation of our hopes. "I believe in democracy," said Woodrow Wilson,  "because it releases the energy of every human being." The dynamic of  democracy is the power and the purpose of the individual, and the policy of  this administration is to give to the individual the opportunity to realize  his own highest possibilities.  
1962-60	1962	Our program is to open to all the opportunity for steady and productive  employment, to remove from all the handicap of arbitrary or irrational  exclusion, to offer to all the facilities for education and health and  welfare, to make society the servant of the individual and the individual  the source of progress, and thus to realize for all the full promise of  American life.  
1962-61	1962	IV. OUR GOALS ABROAD  
1962-62	1962	All of these efforts at home give meaning to our efforts abroad. Since the  close of the Second World War, a global civil war has divided and tormented  mankind. But it is not our military might, or our higher standard of  living, that has most distinguished us from our adversaries. It is our  belief that the state is the servant of the citizen and not his master.  
1962-63	1962	This basic clash of ideas and wills is but one of the forces reshaping our  globe--swept as it is by the tides of hope and fear, by crises in the  headlines today that become mere footnotes tomorrow. Both the successes and  the setbacks of the past year remain on our agenda of unfinished business.  For every apparent blessing contains the seeds of danger--every area of  trouble gives out a ray of hope--and the one unchangeable certainty is that  nothing is certain or unchangeable.  
1962-64	1962	Yet our basic goal remains the same: a peaceful world community of free and  independent states--free to choose their own future and their own system,  so long as it does not threaten the freedom of others.  
1962-65	1962	Some may choose forms and ways that we would not choose for ourselves--but  it is not for us that they are choosing. We can welcome diversity--the  Communists cannot. For we offer a world of choice--they offer the world of  coercion. And the way of the past shows clearly that freedom, not coercion,  is the wave of the future. At times our goal has been obscured by crisis or  endangered by conflict--but it draws sustenance from five basic sources of  strength:  
1962-66	1962	--the moral and physical strength of the United States;  
1962-67	1962	--the united strength of the Atlantic Community;  
1962-68	1962	--the regional strength of our Hemispheric relations;  
1962-69	1962	--the creative strength of our efforts in the new and developing nations;  and  
1962-70	1962	--the peace-keeping strength of the United Nations.  
1962-71	1962	V. OUR MILITARY STRENGTH  
1962-72	1962	Our moral and physical strength begins at home as already discussed. But it  includes our military strength as well. So long as fanaticism and fear  brood over the affairs of men, we must arm to deter others from  aggression.  
1962-73	1962	In the past 12 months our military posture has steadily improved. We  increased the previous defense budget by 15 percent--not in the expectation  of war but for the preservation of peace. We more than doubled our  acquisition rate of Polaris submarines--we doubled the production capacity  for Minuteman missiles--and increased by 50 percent the number of manned  bombers standing ready on a 15 minute alert. This year the combined force  levels planned under our new Defense budget--including nearly three hundred  additional Polaris and Minuteman missiles--have been precisely calculated  to insure the continuing strength of our nuclear deterrent.  
1962-74	1962	But our strength may be tested at many levels. We intend to have at all  times the capacity to resist non-nuclear or limited attacks--as a  complement to our nuclear capacity, not as a substitute. We have rejected  any all-or-nothing posture which would leave no choice but inglorious  retreat or unlimited retaliation.  
1962-75	1962	Thus we have doubled the number of ready combat divisions in the Army's  strategic reserve--increased our troops in Europe--built up the  Marines--added new sealift and airlift capacity--modernized our weapons and  ammunition--expanded our anti-guerrilla forces--and increased the active  fleet by more than 70 vessels and our tactical air forces by nearly a dozen  wings.  
1962-76	1962	Because we needed to reach this higher long-term level of readiness more  quickly, 155,000 members of the Reserve and National Guard were activated  under the Act of this Congress. Some disruptions and distress were  inevitable. But the overwhelming majority bear their burdens--and their  Nation's burdens--with admirable and traditional devotion.  
1962-77	1962	In the coming year, our reserve programs will be revised--two Army  Divisions will, I hope, replace those Guard Divisions on duty--and  substantial other increases will boost our Air Force fighter units, the  procurement of equipment, and our continental defense and warning efforts.  The Nation's first serious civil defense shelter program is under way,  identifying, marking, and stocking 50 million spaces; and I urge your  approval of Federal incentives for the construction of public fall-out  shelters in schools and hospitals and similar centers.  
1962-78	1962	VI. THE UNITED NATIONS  
1962-79	1962	But arms alone are not enough to keep the peace--it must be kept by men.  Our instrument and our hope is the United Nations--and I see little merit  in the impatience of those who would abandon this imperfect world  instrument because they dislike our imperfect world. For the troubles of  a world organization merely reflect the troubles of the world itself. And  if the organization is weakened, these troubles can only increase. We may  not always agree with every detailed action taken by every officer of the  United Nations, or with every voting majority. But as an institution, it  should have in the future, as it has had in the past since its inception,  no stronger or more faithful member than the United States of America.  
1962-80	1962	In 1961 the peace-keeping strength of the United Nations was reinforced.  And those who preferred or predicted its demise, envisioning a troika in  the seat of Hammarskjold--or Red China inside the Assembly--have seen  instead a new vigor, under a new Secretary General and a fully independent  Secretariat. In making plans for a new forum and principles on disarmament  --for peace-keeping in outer space--for a decade of development effort--the  UN fulfilled its Charter's lofty aim.  
1962-81	1962	Eighteen months ago the tangled and turbulent Congo presented the UN with  its gravest challenge. The prospect was one of chaos--or certain big-power  confrontation, with all of its hazards and all of its risks, to us and to  others. Today the hopes have improved for peaceful conciliation within a  united Congo. This is the objective of our policy in this important area.  
1962-82	1962	No policeman is universally popular--particularly when he uses his stick to  restore law and order on his beat. Those members who are willing to  contribute their votes and their views--but very little else--have created  a serious deficit by refusing to pay their share of special UN assessments.  Yet they do pay their annual assessments to retain their votes--and a new  UN Bond issue, financing special operations for the next 18 months, is to  be repaid with interest from these regular assessments. This is clearly in  our interest. It will not only keep the UN solvent, but require all voting  members to pay their fair share of its activities. Our share of special  operations has long been much higher than our share of the annual  assessment--and the bond issue will in effect reduce our disproportionate  obligation, and for these reasons, I am urging Congress to approve our  participation.  
1962-83	1962	With the approval of this Congress, we have undertaken in the past year a  great new effort in outer space. Our aim is not simply to be first on the  moon, any more than Charles Lindbergh's real aim was to be the first to  Paris. His aim was to develop the techniques of our own country and other  countries in the field of air and the atmosphere, and our objective in  making this effort, which we hope will place one of our citizens on the  moon, is to develop in a new frontier of science, commerce and cooperation,  the position of the United States and the Free World.  
1962-84	1962	This Nation belongs among the first to explore it, and among the first--if  not the first--we shall be. We are offering our know-how and our  cooperation to the United Nations. Our satellites will soon be providing  other nations with improved weather observations. And I shall soon send to  the Congress a measure to govern the financing and operation of an  International Communications Satellite system, in a manner consistent with  the public interest and our foreign policy.  
1962-85	1962	But peace in space will help us naught once peace on earth is gone. World  order will be secured only when the whole world has laid down these weapons  which seem to offer us present security but threaten the future survival of  the human race. That armistice day seems very far away. The vast resources  of this planet are being devoted more and more to the means of destroying,  instead of enriching, human life.  
1962-86	1962	But the world was not meant to be a prison in which man awaits his  execution. Nor has mankind survived the tests and trials of thousands of  years to surrender everything--including its existence--now. This Nation  has the will and the faith to make a supreme effort to break the log jam  on disarmament and nuclear tests--and we will persist until we prevail,  until the rule of law has replaced the ever dangerous use of force.  
1962-87	1962	VII. LATIN AMERICA  
1962-88	1962	I turn now to a prospect of great promise: our Hemispheric relations. The  Alliance for Progress is being rapidly transformed from proposal to  program. Last month in Latin America I saw for myself the quickening of  hope, the revival of confidence, the new trust in our country--among  workers and farmers as well as diplomats. We have pledged our help in  speeding their economic, educational, and social progress. The Latin  American Republics have in turn pledged a new and strenuous effort of  self-help and self-reform.  
1962-89	1962	To support this historic undertaking, I am proposing--under the authority  contained in the bills of the last session of the Congress--a special  long-term Alliance for Progress fund of $3 billion. Combined with our Food  for Peace, Export-Import Bank, and other resources, this will provide more  than $1 billion a year in new support for the Alliance. In addition, we  have increased twelve-fold our Spanish and Portuguese language broadcasting  in Latin America, and improved Hemispheric trade and defense. And while  the blight of communism has been increasingly exposed and isolated in the  Americas, liberty has scored a gain. The people of the Dominican Republic,  with our firm encouragement and help, and those of our sister Republics of  this Hemisphere, are safely passing through the treacherous course from  dictatorship through disorder towards democracy.  
1962-90	1962	VIII. THE NEW AND DEVELOPING NATIONS  
1962-91	1962	Our efforts to help other new or developing nations, and to strengthen  their stand for freedom, have also made progress. A newly unified Agency  for International Development is reorienting our foreign assistance to  emphasize long-term development loans instead of grants, more economic aid  instead of military, individual plans to meet the individual needs of the  nations, and new standards on what they must do to marshal their own  resources.  
1962-92	1962	A newly conceived Peace Corps is winning friends and helping people in  fourteen countries--supplying trained and dedicated young men and women, to  give these new nations a hand in building a society, and a glimpse of the  best that is in our country. If there is a problem here, it is that we  cannot supply the spontaneous and mounting demand.  
1962-93	1962	A newly-expanded Food for Peace Program is feeding the hungry of many  lands with the abundance of our productive farms--providing lunches for  children in school, wages for economic development, relief for the victims  of flood and famine, and a better diet for millions whose daily bread is  their chief concern.  
1962-94	1962	These programs help people; and, by helping people, they help freedom. The  views of their governments may sometimes be very different from ours--but  events in Africa, the Middle East, and Eastern Europe teach us never to  write off any nation as lost to the Communists. That is the lesson of our  time. We support the independence of those newer or weaker states whose  history, geography, economy or lack of power impels them to remain outside  "entangling alliances"--as we did for more than a century. For the  independence of nations is a bar to the Communists' "grand design"--it is  the basis of our own.  
1962-95	1962	In the past year, for example, we have urged a neutral and independent  Laos--regained there a common policy with our major allies--and insisted  that a cease-fire precede negotiations. While a workable formula for  supervising its independence is still to be achieved, both the spread  of war--which might have involved this country also--and a Communist  occupation have thus far been prevented.  
1962-96	1962	A satisfactory settlement in Laos would also help to achieve and safeguard  the peace in Viet-Nam--where the foe is increasing his tactics of  terror--where our own efforts have been stepped up--and where the local  government has initiated new programs and reforms to broaden the base of  resistance. The systematic aggression now bleeding that country is not a  "war of liberation"--for Viet-Nam is already free. It is a war of attempted  subjugation--and it will be resisted.  
1962-97	1962	IX. THE ATLANTIC COMMUNITY  
1962-98	1962	Finally, the united strength of the Atlantic Community has flourished in  the last year under severe tests. NATO has increased both the number and  the readiness of its air, ground, and naval units--both its nuclear and  non-nuclear capabilities. Even greater efforts by all its members are still  required. Nevertheless our unity of purpose and will has been, I believe,  immeasurably strengthened.  
1962-99	1962	The threat to the brave city of Berlin remains. In these last 6 months the  Allies have made it unmistakably clear that our presence in Berlin, our  free access thereto, and the freedom of two million West Berliners would  not be surrendered either to force or through appeasement--and to maintain  those rights and obligations, we are prepared to talk, when appropriate,  and to fight, if necessary. Every member of NATO stands with us in a common  commitment to preserve this symbol of free man's will to remain free.  
1962-100	1962	I cannot now predict the course of future negotiations over Berlin. I can  only say that we are sparing no honorable effort to find a peaceful and  mutually acceptable resolution of this problem. I believe such a resolution  can be found, and with it an improvement in our relations with the Soviet  Union, if only the leaders in the Kremlin will recognize the basic rights  and interests involved, and the interest of all mankind in peace.  
1962-101	1962	But the Atlantic Community is no longer concerned with purely military  aims. As its common undertakings grow at an ever-increasing pace, we are,  and increasingly will be, partners in aid, trade, defense, diplomacy, and  monetary affairs.  
1962-102	1962	The emergence of the new Europe is being matched by the emergence of new  ties across the Atlantic. It is a matter of undramatic daily cooperation in  hundreds of workaday tasks: of currencies kept in effective relation, of  development loans meshed together, of standardized weapons, and concerted  diplomatic positions. The Atlantic Community grows, not like a volcanic  mountain, by one mighty explosion, but like a coral reef, from the  accumulating activity of all.  
1962-103	1962	Thus, we in the free world are moving steadily toward unity and  cooperation, in the teeth of that old Bolshevik prophecy, and at the very  time when extraordinary rumbles of discord can be heard across the Iron  Curtain. It is not free societies which bear within them the seeds of  inevitable disunity.  
1962-104	1962	X. OUR BALANCE OF PAYMENTS  
1962-105	1962	On one special problem, of great concern to our friends, and to us, I am  proud to give the Congress an encouraging report. Our efforts to safeguard  the dollar are progressing. In the 11 months preceding last February 1, we  suffered a net loss of nearly $2 billion in gold. In the 11 months that  followed, the loss was just over half a billion dollars. And our deficit in  our basic transactions with the rest of the world--trade, defense, foreign  aid, and capital, excluding volatile short-term flows--has been reduced  from $2 billion for 1960 to about one-third that amount for 1961.  Speculative fever against the dollar is ending--and confidence in the  dollar has been restored.  
1962-106	1962	We did not--and could not--achieve these gains through import restrictions,  troop withdrawals, exchange controls, dollar devaluation or choking off  domestic recovery. We acted not in panic but in perspective. But the  problem is not yet solved. Persistently large deficits would endanger our  economic growth and our military and defense commitments abroad. Our goal  must be a reasonable equilibrium in our balance of payments. With the  cooperation of the Congress, business, labor, and our major allies, that  goal can be reached.  
1962-107	1962	We shall continue to attract foreign tourists and investments to our  shores, to seek increased military purchases here by our allies, to  maximize foreign aid procurement from American firms, to urge increased aid  from other fortunate nations to the less fortunate, to seek tax laws which  do not favor investment in other industrialized nations or tax havens, and  to urge coordination of allied fiscal and monetary policies so as to  discourage large and disturbing capital movements.  
1962-108	1962	TRADE  
1962-109	1962	Above all, if we are to pay for our commitments abroad, we must expand our  exports. Our businessmen must be export conscious and export competitive.  Our tax policies must spur modernization of our plants--our wage and price  gains must be consistent with productivity to hold the line on prices--our  export credit and promotion campaigns for American industries must continue  to expand.  
1962-110	1962	But the greatest challenge of all is posed by the growth of the European  Common Market. Assuming the accession of the United Kingdom, there will  arise across the Atlantic a trading partner behind a single external tariff  similar to ours with an economy which nearly equals our own. Will we in  this country adapt our thinking to these new prospects and patterns--or  will we wait until events have passed us by?  
1962-111	1962	This is the year to decide. The Reciprocal Trade Act is expiring. We need a  new law--a wholly new approach--a bold new instrument of American trade  policy. Our decision could well affect the unity of the West, the course of  the Cold War, and the economic growth of our Nation for a generation to  come.  
1962-112	1962	If we move decisively, our factories and farms can increase their sales to  their richest, fastest-growing market. Our exports will increase. Our  balance of payments position will improve. And we will have forged across  the Atlantic a trading partnership with vast resources for freedom.  
1962-113	1962	If, on the other hand, we hang back in deference to local economic  pressures, we will find ourselves cut off from our major allies.  Industries--and I believe this is most vital--industries will move their  plants and jobs and capital inside the walls of the Common Market, and  jobs, therefore, will be lost here in the United States if they cannot  otherwise compete for its consumers. Our farm surpluses--our balance of  trade, as you all know, to Europe, the Common Market, in farm products, is  nearly three or four to one in our favor, amounting to one of the best  earners of dollars in our balance of payments structure, and without  entrance to this Market, without the ability to enter it, our farm  surpluses will pile up in the Middle West, tobacco in the South, and other  commodities, which have gone through Western Europe for 15 years. Our  balance of payments position will worsen. Our consumers will lack a wider  choice of goods at lower prices. And millions of American workers--whose  jobs depend on the sale or the transportation or the distribution of  exports or imports, or whose jobs will be endangered by the movement of our  capital to Europe, or whose jobs can be maintained only in an expanding  economy--these millions of workers in your home States and mine will see  their real interests sacrificed.  
1962-114	1962	Members of the Congress: The United States did not rise to greatness by  waiting for others to lead. This Nation is the world's foremost  manufacturer, farmer, banker, consumer, and exporter. The Common Market is  moving ahead at an economic growth rate twice ours. The Communist economic  offensive is under way. The opportunity is ours--the initiative is up to  us--and I believe that 1962 is the time.  
1962-115	1962	To seize that initiative, I shall shortly send to the Congress a new  five-year Trade Expansion Action, far-reaching in scope but designed with  great care to make certain that its benefits to our people far outweigh any  risks. The bill will permit the gradual elimination of tariffs here in the  United States and in the Common Market on those items in which we together  supply 80 percent of the world's trade--mostly items in which our own  ability to compete is demonstrated by the fact that we sell abroad, in  these items, substantially more than we import. This step will make it  possible for our major industries to compete with their counterparts in  Western Europe for access to European consumers.  
1962-116	1962	On other goods the bill will permit a gradual reduction of duties up to 50  percent--permitting bargaining by major categories--and provide for  appropriate and tested forms of assistance to firms and employees adjusting  to import competition. We are not neglecting the safeguards provided by  peril points, an escape clause, or the National Security Amendment. Nor are  we abandoning our non-European friends or our traditional "most-favored  nation" principle. On the contrary, the bill will provide new encouragement  for their sale of tropical agricultural products, so important to our  friends in Latin America, who have long depended upon the European market,  who now find themselves faced with new challenges which we must join with  them in overcoming.  
1962-117	1962	Concessions, in this bargaining, must of course be reciprocal, not  unilateral. The Common Market will not fulfill its own high promise unless  its outside tariff walls are low. The dangers of restriction or timidity in  our own policy have counterparts for our friends in Europe. For together we  face a common challenge: to enlarge the prosperity of free men  everywhere--to build in partnership a new trading community in which all  free nations may gain from the productive energy of free competitive  effort.  
1962-118	1962	These various elements in our foreign policy lead, as I have said, to a  single goal--the goal of a peaceful world of free and independent states.  This is our guide for the present and our vision for the future--a free  community of nations, independent but interdependent, uniting north and  south, east and west, in one great family of man, outgrowing and  transcending the hates and fears that rend our age.  
1962-119	1962	We will not reach that goal today, or tomorrow. We may not reach it in our  own lifetime. But the quest is the greatest adventure of our century. We  sometimes chafe at the burden of our obligations, the complexity of our  decisions, the agony of our choices. But there is no comfort or security  for us in evasion, no solution in abdication, no relief in  irresponsibility.  
1962-120	1962	A year ago, in assuming the tasks of the Presidency, I said that few  generations, in all history, had been granted the role of being the great  defender of freedom in its hour of maximum danger. This is our good  fortune; and I welcome it now as I did a year ago. For it is the fate of  this generation--of you in the Congress and of me as President--to live  with a struggle we did not start, in a world we did not make. But the  pressures of life are not always distributed by choice. And while no  nation has ever faced such a challenge, no nation has ever been so ready  to seize the burden and the glory of freedom.  
1962-121	1962	And in this high endeavor, may God watch over the United States of America.  
1963-1	1963	Mr. Vice President, Mr. Speaker, Members of the 88th Congress:  
1963-2	1963	I congratulate you all--not merely on your electoral victory but on your  selected role in history. For you and I are privileged to serve the great  Republic in what could be the most decisive decade in its long history. The  choices we make, for good or ill, may well shape the state of the Union for  generations yet to come.  
1963-3	1963	Little more than 100 weeks ago I assumed the office of President of the  United States. In seeking the help of the Congress and our countrymen, I  pledged no easy answers. I pledged--and asked--only toil and dedication.  These the Congress and the people have given in good measure. And today,  having witnessed in recent months a heightened respect for our national  purpose and power--having seen the courageous calm of a united people in  a perilous hour--and having observed a steady improvement in the  opportunities and well-being of our citizens--I can report to you that  the state of this old but youthful Union, in the 175th year of its life,  is good.  
1963-4	1963	In the world beyond our borders, steady progress has been made in building  a world of order. The people of West Berlin remain both free and secure. A  settlement, though still precarious, has been reached in Laos. The  spearpoint of aggression has been blunted in Viet-Nam. The end of agony may  be in sight in the Congo. The doctrine of troika is dead. And, while danger  continues, a deadly threat has been removed in Cuba.  
1963-5	1963	At home, the recession is behind us. Well over a million more men and women  are working today than were working 2 years ago. The average factory  work week is once again more than 40 hours; our industries are turning out  more goods than ever before; and more than half of the manufacturing  capacity that lay silent and wasted 100 weeks ago is humming with  activity.  
1963-6	1963	In short, both at home and abroad, there may now be a temptation to relax.  For the road has been long, the burden heavy, and the pace consistently  urgent.  
1963-7	1963	But we cannot be satisfied to rest here. This is the side of the hill, not  the top. The mere absence of war is not peace. The mere absence of  recession is not growth. We have made a beginning--but we have only begun.  
1963-8	1963	Now the time has come to make the most of our gains--to translate the  renewal of our national strength into the achievement of our national  purpose.  
1963-9	1963	I.  
1963-10	1963	America has enjoyed 22 months of uninterrupted economic recovery. But  recovery is not enough. If we are to prevail in the long run, we must  expand the long-run strength of our economy. We must move along the path to  a higher rate of growth and full employment.  
1963-11	1963	For this would mean tens of billions of dollars more each year in  production, profits, wages, and public revenues. It would mean an end to  the persistent slack which has kept our unemployment at or above 5 percent  for 61 out of the past 62 months--and an end to the growing pressures for  such restrictive measures as the 35-hour week, which alone could increase  hourly labor costs by as much as 14 percent, start a new wage-price spiral  of inflation, and undercut our efforts to compete with other nations.  
1963-12	1963	To achieve these greater gains, one step, above all, is essential--the  enactment this year of a substantial reduction and revision in Federal  income taxes.  
1963-13	1963	For it is increasingly clear--to those in Government, business, and labor  who are responsible for our economy's success--that our obsolete tax system  exerts too heavy a drag on private purchasing power, profits, and  employment. Designed to check inflation in earlier years, it now checks  growth instead. It discourages extra effort and risk. It distorts the use  of resources. It invites recurrent recessions, depresses our Federal  revenues, and causes chronic budget deficits.  
1963-14	1963	Now, when the inflationary pressures of the war and the post-war years no  longer threaten, and the dollar commands new respect--now, when no military  crisis strains our resources--now is the time to act. We cannot afford to  be timid or slow. For this is the most urgent task confronting the Congress  in 1963.  
1963-15	1963	In an early message, I shall propose a permanent reduction in tax rates  which will lower liabilities by $13.5 billion. Of this, $11 billion results  from reducing individual tax rates, which now range between 20 and 91  percent, to a more sensible range of 14 to 65 percent, with a split in the  present first bracket. Two and one-half billion dollars results from  reducing corporate tax rates, from 52 percent--which gives the Government  today a majority interest in profits--to the permanent pre-Korean level of  47 percent. This is in addition to the more than $2 billion cut in  corporate tax liabilities resulting from last year's investment credit and  depreciation reform.  
1963-16	1963	To achieve this reduction within the limits of a manageable budgetary  deficit, I urge: first, that these cuts be phased over 3 calendar years,  beginning in 1963 with a cut of some $6 billion at annual rates; second,  that these reductions be coupled with selected structural changes,  beginning in 1964, which will broaden the tax base, end unfair or  unnecessary preferences, remove or lighten certain hardships, and in the  net offset some $3.5 billion of the revenue loss; and third, that budgetary  receipts at the outset be increased by $1.5 billion a year, without any  change in tax liabilities, by gradually shifting the tax payments of large  corporations to a more current time schedule. This combined program, by  increasing the amount of our national income, will in time result in still  higher Federal revenues. It is a fiscally responsible program--the surest  and the soundest way of achieving in time a balanced budget in a balanced  full employment economy.  
1963-17	1963	This net reduction in tax liabilities of $10 billion will increase the  purchasing power of American families and business enterprises in every tax  bracket, with greatest increase going to our low-income consumers. It will,  in addition, encourage the initiative and risk-taking on which our free  system depends--induce more investment, production, and capacity use--help  provide the 2 million new jobs we need every year--and reinforce the  American principle of additional reward for additional effort.  
1963-18	1963	I do not say that a measure for tax reduction and reform is the only way to  achieve these goals.  
1963-19	1963	No doubt a massive increase in Federal spending could also create jobs  and growth, but in today's setting, private consumers, employers, and  investors should be given a full opportunity first.  
1963-20	1963	No doubt a temporary tax cut could provide a spur to our economy--but a  long-run problem compels a long-run solution.  
1963-21	1963	No doubt a reduction in either individual or corporation taxes alone  would be of great help--but corporations need customers and job seekers  need jobs.  
1963-22	1963	No doubt tax reduction without reform would sound simpler and more  attractive to many--but our growth is also hampered by a host of tax  inequities and special preferences which have distorted the flow of  investment.  
1963-23	1963	And finally, there are no doubt some who would prefer to put off a tax  cut in the hope that ultimately an end to the cold war would make possible  an equivalent cut in expenditures--but that end is not in view and to wait  for it would be costly and self-defeating.  
1963-24	1963	In submitting a tax program which will, of course, temporarily increase the  deficit but can ultimately end it--and in recognition of the need to  control expenditures--I will shortly submit a fiscal 1964 administrative  budget which, while allowing for needed rises in defense, space, and fixed  interest charges, holds total expenditures for all other purposes below  this year's level.  
1963-25	1963	This requires the reduction or postponement of many desirable programs, the  absorption of a large part of last year's Federal pay raise through  personnel and other economies, the termination of certain installations and  projects, and the substitution in several programs of private for public  credit. But I am convinced that the enactment this year of tax reduction  and tax reform overshadows all other domestic problems in this Congress.  For we cannot for long lead the cause of peace and freedom, if we ever  cease to set the pace here at home.  
1963-26	1963	II.  
1963-27	1963	Tax reduction alone, however, is not enough to strengthen our society, to  provide opportunities for the four million Americans who are born every  year, to improve the lives of 32 million Americans who live on the  outskirts of poverty.  
1963-28	1963	The quality of American life must keep pace with the quantity of American  goods.  
1963-29	1963	This country cannot afford to be materially rich and spiritually poor.  
1963-30	1963	Therefore, by holding down the budgetary cost of existing programs to keep  within the limitations I have set, it is both possible and imperative to  adopt other new measures that we cannot afford to postpone.  
1963-31	1963	These measures are based on a series of fundamental premises, grouped under  four related headings:  
1963-32	1963	First, we need to strengthen our Nation by investing in our youth.  
1963-33	1963	The future of any country which is dependent upon the will and wisdom of  its citizens is damaged, and irreparably damaged, whenever any of its  children is not educated to the full extent of his talent, from grade  school through graduate school. Today, an estimated 4 out of every 10  students in the 5th grade will not even finish high school--and that is a  waste we cannot afford.  
1963-34	1963	In addition, there is no reason why one million young Americans, out of  school and out of work, should all remain unwanted and often untrained on  our city streets when their energies can be put to good use.  
1963-35	1963	Finally, the overseas success of our Peace Corps volunteers, most of them  young men and women carrying skills and ideas to needy people, suggests the  merit of a similar corps serving our own community needs: in mental  hospitals, on Indian reservations, in centers for the aged or for young  delinquents, in schools for the illiterate or the handicapped. As the  idealism of our youth has served world peace, so can it serve the domestic  tranquility.  
1963-36	1963	Second, we need to strengthen our Nation by safeguarding its health.  
1963-37	1963	Our working men and women, instead of being forced to beg for help from  public charity once they are old and ill, should start contributing now to  their own retirement health program through the Social Security System.  
1963-38	1963	Moreover, all our miracles of medical research will count for little if  we cannot reverse the growing nationwide shortage of doctors, dentists, and  nurses, and the widespread shortages of nursing homes and modern urban  hospital facilities. Merely to keep the present ratio of doctors and  dentists from declining any further, we must over the next 10 years  increase the capacity of our medical schools by 50 percent and our dental  schools by 100 percent.  
1963-39	1963	Finally, and of deep concern, I believe that the abandonment of the  mentally ill and the mentally retarded to the grim mercy of custodial  institutions too often inflicts on them and on their families a needless  cruelty which this Nation should not endure. The incidence of mental  retardation in this country is three times as high as that of Sweden, for  example--and that figure can and must be reduced.  
1963-40	1963	Third, we need to strengthen our Nation by protecting the basic rights of  its citizens.  
1963-41	1963	The right to competent counsel must be assured to every man accused of  crime in Federal court, regardless of his means.  
1963-42	1963	And the most precious and powerful right in the world, the right to vote  in a free American election, must not be denied to any citizen on grounds  of his race or color. I wish that all qualified Americans permitted to vote  were willing to vote, but surely in this centennial year of Emancipation  all those who are willing to vote should always be permitted.  
1963-43	1963	Fourth, we need to strengthen our Nation by making the best and the most  economical use of its resources and facilities.  
1963-44	1963	Our economic health depends on healthy transportation arteries; and I  believe the way to a more modern, economical choice of national  transportation service is through increased competition and decreased  regulation. Local mass transit, faring even worse, is as essential a  community service as hospitals and highways. Nearly three-fourths of our  citizens live in urban areas, which occupy only 2 percent of our land--and  if local transit is to survive and relieve the congestion of these cities,  it needs Federal stimulation and assistance.  
1963-45	1963	Next, this Government is in the storage and stockpile business to the  melancholy tune of more than $16 billion. We must continue to support farm  income, but we should not pile more farm surpluses on top of the $7.5  billion we already own. We must maintain a stockpile of strategic  materials, but the $8.5 billion we have acquired--for reasons both good and  bad--is much more than we need; and we should be empowered to dispose of  the excess in ways which will not cause market disruption.  
1963-46	1963	Finally, our already overcrowded national parks and recreation areas will  have twice as many visitors 10 years from now as they do today. If we do  not plan today for the future growth of these and other great natural  assets--not only parks and forests but wildlife and wilderness preserves,  and water projects of all kinds--our children and their children will be  poorer in every sense of the word.  
1963-47	1963	These are not domestic concerns alone. For upon our achievement of greater  vitality and strength here at home hang our fate and future in the world:  our ability to sustain and supply the security of free men and nations, our  ability to command their respect for our leadership, our ability to expand  our trade without threat to our balance of payments, and our ability to  adjust to the changing demands of cold war competition and challenge.  
1963-48	1963	We shall be judged more by what we do at home than by what we preach  abroad. Nothing we could do to help the developing countries would help  them half as much as a booming U.S. economy. And nothing our opponents  could do to encourage their own ambitions would encourage them half as much  as a chronic, lagging U.S. economy. These domestic tasks do not divert  energy from our security--they provide the very foundation for freedom's  survival and success.  
1963-49	1963	III.  
1963-50	1963	Turning to the world outside, it was only a few years ago--in Southeast  Asia, Africa, Eastern Europe, Latin America, even outer space--that  communism sought to convey the image of a unified, confident, and expanding  empire, closing in on a sluggish America and a free world in disarray. But  few people would hold to that picture today.  
1963-51	1963	In these past months we have reaffirmed the scientific and military  superiority of freedom. We have doubled our efforts in space, to assure us  of being first in the future. We have undertaken the most far-reaching  defense improvements in the peacetime history of this country. And we have  maintained the frontiers of freedom from Viet-Nam to West Berlin.  
1963-52	1963	But complacency or self-congratulation can imperil our security as much as  the weapons of tyranny. A moment of pause is not a promise of peace.  Dangerous problems remain from Cuba to the South China Sea. The world's  prognosis prescribes, in short, not a year's vacation for us, but a year of  obligation and opportunity.  
1963-53	1963	Four special avenues of opportunity stand out: the Atlantic Alliance, the  developing nations, the new Sino-Soviet difficulties, and the search for  worldwide peace.  
1963-54	1963	IV.  
1963-55	1963	First, how fares the grand alliance? Free Europe is entering into a new  phase of its long and brilliant history. The era of colonial expansion has  passed; the era of national rivalries is fading; and a new era of  interdependence and unity is taking shape. Defying the old prophecies of  Marx, consenting to what no conqueror could ever compel, the free nations  of Europe are moving toward a unity of purpose and power and policy in  every sphere of activity.  
1963-56	1963	For 17 years this movement has had our consistent support, both political  and economic. Far from resenting the new Europe, we regard her as a welcome  partner, not a rival. For the road to world peace and freedom is still  long, and there are burdens which only full partners can share--in  supporting the common defense, in expanding world trade, in aligning our  balance of payments, in aiding the emergent nations, in concerting  political and economic policies, and in welcoming to our common effort  other industrialized nations, notably Japan, whose remarkable economic and  political development of the 1950's permits it now to play on the world  scene a major constructive role.  
1963-57	1963	No doubt differences of opinion will continue to get more attention than  agreements on action, as Europe moves from independence to more formal  interdependence. But these are honest differences among honorable  associates--more real and frequent, in fact, among our Western European  allies than between them and the United States. For the unity of freedom  has never relied on uniformity of opinion. But the basic agreement of this  alliance on fundamental issues continues.  
1963-58	1963	The first task of the alliance remains the common defense. Last month Prime  Minister Macmillan and I laid plans for a new stage in our long cooperative  effort, one which aims to assist in the wider task of framing a common  nuclear defense for the whole alliance.  
1963-59	1963	The Nassau agreement recognizes that the security of the West is  indivisible, and so must be our defense. But it also recognizes that this  is an alliance of proud and sovereign nations, and works best when we do  not forget it. It recognizes further that the nuclear defense of the West  is not a matter for the present nuclear powers alone--that France will be  such a power in the future--and that ways must be found without increasing  the hazards of nuclear diffusion, to increase the role of our other  partners in planning, manning, and directing a truly multilateral nuclear  force within an increasingly intimate NATO alliance. Finally, the Nassau  agreement recognizes that nuclear defense is not enough, that the agreed  NATO levels of conventional strength must be met, and that the alliance  cannot afford to be in a position of having to answer every threat with  nuclear weapons or nothing.  
1963-60	1963	We remain too near the Nassau decisions, and too far from their full  realization, to know their place in history. But I believe that, for the  first time, the door is open for the nuclear defense of the alliance to  become a source of confidence, instead of a cause of contention.  
1963-61	1963	The next most pressing concern of the alliance is our common economic goals  of trade and growth. This Nation continues to be concerned about its  balance-of-payments deficit, which, despite its decline, remains a stubborn  and troublesome problem. We believe, moreover, that closer economic ties  among all free nations are essential to prosperity and peace. And neither  we nor the members of the European Common Market are so affluent that we  can long afford to shelter high cost farms or factories from the winds of  foreign competition, or to restrict the channels of trade with other  nations of the free world. If the Common Market should move toward  protectionism and restrictionism, it would undermine its own basic  principles. This Government means to use the authority conferred on it last  year by the Congress to encourage trade expansion on both sides of the  Atlantic and around the world.  
1963-62	1963	V.  
1963-63	1963	Second, what of the developing and non-aligned nations? They were shocked  by the Soviets' sudden and secret attempt to transform Cuba into a nuclear  striking base--and by Communist China's arrogant invasion of India. They  have been reassured by our prompt assistance to India, by our support  through the United Nations of the Congo's unification, by our patient  search for disarmament, and by the improvement in our treatment of citizens  and visitors whose skins do not happen to be white. And as the older  colonialism recedes, and the neo-colonialism of the Communist powers stands  out more starkly than ever, they realize more clearly that the issue in the  world struggle is not communism versus capitalism, but coercion versus free  choice.  
1963-64	1963	They are beginning to realize that the longing for independence is the same  the world over, whether it is the independence of West Berlin or Viet-Nam.  They are beginning to realize that such independence runs athwart all  Communist ambitions but is in keeping with our own--and that our approach  to their diverse needs is resilient and resourceful, while the Communists  are still relying on ancient doctrines and dogmas.  
1963-65	1963	Nevertheless it is hard for any nation to focus on an external or  subversive threat to its independence when its energies are drained in  daily combat with the forces of poverty and despair. It makes little sense  for us to assail, in speeches and resolutions, the horrors of communism, to  spend $50 billion a year to prevent its military advance--and then to  begrudge spending, largely on American products, less than one-tenth of  that amount to help other nations strengthen their independence and cure  the social chaos in which communism has always thrived.  
1963-66	1963	I am proud--and I think most Americans are proud--of a mutual defense and  assistance program, evolved with bipartisan support in three  administrations, which has, with all its recognized problems, contributed  to the fact that not a single one of the nearly fifty U.N. members to gain  independence since the Second World War has succumbed to Communist  control.  
1963-67	1963	I am proud of a program that has helped to arm and feed and clothe millions  of people who live on the front lines of freedom.  
1963-68	1963	I am especially proud that this country has put forward for the 60's a vast  cooperative effort to achieve economic growth and social progress  throughout the Americas--the Alliance for Progress.  
1963-69	1963	I do not underestimate the difficulties that we face in this mutual effort  among our close neighbors, but the free states of this hemisphere, working  in close collaboration, have begun to make this alliance a living reality.  Today it is feeding one out of every four school age children in Latin  America an extra food ration from our farm surplus. It has distributed 1.5  million school books and is building 17,000 classrooms. It has helped  resettle tens of thousands of farm families on land they can call their  own. It is stimulating our good neighbors to more self-help and  self-reform--fiscal, social, institutional, and land reforms. It is  bringing new housing and hope, new health and dignity, to millions who were  forgotten. The men and women of this hemisphere know that the alliance  cannot succeed if it is only another name for United States handouts--that  it can succeed only as the Latin American nations themselves devote their  best effort to fulfilling its goals.  
1963-70	1963	This story is the same in Africa, in the Middle East, and in Asia. Wherever  nations are willing to help themselves, we stand ready to help them build  new bulwarks of freedom. We are not purchasing votes for the cold war; we  have gone to the aid of imperiled nations, neutrals and allies alike. What  we do ask--and all that we ask--is that our help be used to best advantage,  and that their own efforts not be diverted by needless quarrels with other  independent nations.  
1963-71	1963	Despite all its past achievements, the continued progress of the Mutual  Assistance Program requires a persistent discontent with present  performance. We have been reorganizing this program to make it a more  effective, efficient instrument--and that process will continue this year.  
1963-72	1963	But free world development will still be an uphill struggle. Government aid  can only supplement the role of private investment, trade expansion,  commodity stabilization, and, above all, internal self-improvement. The  processes of growth are gradual--bearing fruit in a decade, not a day. Our  successes will be neither quick nor dramatic. But if these programs were  ever to be ended, our failures in a dozen countries would be sudden and  certain.  
1963-73	1963	Neither money nor technical assistance, however, can be our only weapon  against poverty. In the end, the crucial effort is one of purpose,  requiring the fuel of finance but also a torch of idealism. And nothing  carries the spirit of this American idealism more effectively to the far  corners of the earth than the American Peace Corps.  
1963-74	1963	A year ago, less than 900 Peace Corps volunteers were on the job. A year  from now they will number more than 9,000--men and women, aged 18 to 79,  willing to give 2 years of their lives to helping people in other lands.  
1963-75	1963	There are, in fact, nearly a million Americans serving their country and  the cause of freedom in overseas posts, a record no other people can match.  Surely those of us who stay at home should be glad to help indirectly; by  supporting our aid programs; .by opening our doors to foreign visitors and  diplomats and students; and by proving, day by day, by deed as well as  word, that we are a just and generous people.  
1963-76	1963	VI.  
1963-77	1963	Third, what comfort can we take from the increasing strains and tensions  within the Communist bloc? Here hope must be tempered with caution. For the  Soviet-Chinese disagreement is over means, not ends. A dispute over how  best to bury the free world is no grounds for Western rejoicing.  
1963-78	1963	Nevertheless, while a strain is not a fracture, it is clear that the forces  of diversity are at work inside the Communist camp, despite all the iron  disciplines of regimentation and all the iron dogmatisms of ideology. Marx  is proven wrong once again: for it is the closed Communist societies, not  the free and open societies which carry within themselves the seeds of  internal disintegration.  
1963-79	1963	The disarray of the Communist empire has been heightened by two other  formidable forces. One is the historical force of nationalism--and the  yearning of all men to be free. The other is the gross inefficiency of  their economies. For a closed society is not open to ideas of progress--and  a police state finds that it cannot command the grain to grow.  
1963-80	1963	New nations asked to choose between two competing systems need only compare  conditions in East and West Germany, Eastern and Western Europe, North and  South Viet-Nam. They need only compare the disillusionment of Communist  Cuba with the promise of the Alliance for Progress. And all the world knows  that no successful system builds a wall to keep its people in and freedom  out--and the wall of shame dividing Berlin is a symbol of Communist  failure.  
1963-81	1963	VII.  
1963-82	1963	Finally, what can we do to move from the present pause toward enduring  peace? Again I would counsel caution. I foresee no spectacular reversal in  Communist methods or goals. But if all these trends and developments can  persuade the Soviet Union to walk the path of peace, then let her know that  all free nations will journey with her. But until that choice is made, and  until the world can develop a reliable system of international security,  the free peoples have no choice but to keep their arms nearby.  
1963-83	1963	This country, therefore, continues to require the best defense in the  world--a defense which is suited to the sixties. This means, unfortunately,  a rising defense budget--for there is no substitute for adequate defense,  and no "bargain basement" way of achieving it. It means the expenditure of  more than $15 billion this year on nuclear weapons systems alone, a sum  which is about equal to the combined defense budgets of our European  Allies.  
1963-84	1963	But it also means improved air and missile defenses, improved civil  defense, a strengthened anti-guerrilla capacity and, of prime importance,  more powerful and flexible non-nuclear forces. For threats of massive  retaliation may not deter piecemeal aggression--and a line of destroyers in  a quarantine, or a division of well-equipped men on a border, may be more  useful to our real security than the multiplication of awesome weapons  beyond all rational need.  
1963-85	1963	But our commitment to national safety is not a commitment to expand our  military establishment indefinitely. We do not dismiss disarmament as  merely an idle dream. For we believe that, in the end, it is the only way  to assure the security of all without impairing the interests of any. Nor  do we mistake honorable negotiation for appeasement. While we shall never  weary in the defense of freedom, neither shall we ever abandon the pursuit  of peace.  
1963-86	1963	In this quest, the United Nations requires our full and continued support.  Its value in serving the cause of peace has been shown anew in its role in  the West New Guinea settlement, in its use as a forum for the Cuban crisis,  and in its task of unification in the Congo. Today the United Nations is  primarily the protector of the small and the weak, and a safety valve for  the strong. Tomorrow it can form the framework for a world of law--a world  in which no nation dictates the destiny of another, and in which the vast  resources now devoted to destructive means will serve constructive ends.  
1963-87	1963	In short, let our adversaries choose. If they choose peaceful competition,  they shall have it. If they come to realize that their ambitions cannot  succeed--if they see their "wars of liberation" and subversion will  ultimately fail--if they recognize that there is more security in accepting  inspection than in permitting new nations to master the black arts of  nuclear war--and if they are willing to turn their energies, as we are, to  the great unfinished tasks of our own peoples--then, surely, the areas of  agreement can be very wide indeed: a clear understanding about Berlin,  stability in Southeast Asia, an end to nuclear testing, new checks on  surprise or accidental attack, and, ultimately, general and complete  disarmament.  
1963-88	1963	VIII.  
1963-89	1963	For we seek not the worldwide victory of one nation or system but a  worldwide victory of man. The modern globe is too small, its weapons are  too destructive, and its disorders are too contagious to permit any other  kind of victory.  
1963-90	1963	To achieve this end, the United States will continue to spend a greater  portion of its national production than any other people in the free world.  For 15 years no other free nation has demanded so much of itself. Through  hot wars and cold, through recession and prosperity, through the ages of  the atom and outer space, the American people have never faltered and their  faith has never flagged. If at times our actions seem to make life  difficult for others, it is only because history has made life difficult  for us all.  
1963-91	1963	But difficult days need not be dark. I think these are proud and memorable  days in the cause of peace and freedom. We are proud, for example, of Major  Rudolf Anderson who gave his life over the island of Cuba. We salute  Specialist James Allen Johnson who died on the border of South Korea. We  pay honor to Sergeant Gerald Pendell who was killed in Viet-Nam. They are  among the many who in this century, far from home, have died for our  country. Our task now, and the task of all Americans is to live up to their  commitment.  
1963-92	1963	My friends: I close on a note of hope. We are not lulled by the momentary  calm of the sea or the somewhat clearer skies above. We know the turbulence  that lies below, and the storms that are beyond the horizon this year. But  now the winds of change appear to be blowing more strongly than ever, in  the world of communism as well as our own. For 175 years we have sailed  with those winds at our back, and with the tides of human freedom in our  favor. We steer our ship with hope, as Thomas Jefferson said, "leaving Fear  astern."  
1963-93	1963	Today we still welcome those winds of change--and we have every reason to  believe that our tide is running strong. With thanks to Almighty God for  seeing us through a perilous passage, we ask His help anew in guiding the  "Good Ship Union."  
1964-1	1964	Mr. Speaker, Mr. President, Members of the House and Senate, my fellow  Americans:  
1964-2	1964	I will be brief, for our time is necessarily short and our agenda is  already long.  
1964-3	1964	Last year's congressional session was the longest in peacetime history.  With that foundation, let us work together to make this year's session the  best in the Nation's history.  
1964-4	1964	Let this session of Congress be known as the session which did more for  civil rights than the last hundred sessions combined; as the session which  enacted the most far-reaching tax cut of our time; as the session which  declared all-out war on human poverty and unemployment in these United  States; as the session which finally recognized the health needs of all our  older citizens; as the session which reformed our tangled transportation  and transit policies; as the session which achieved the most effective,  efficient foreign aid program ever; and as the session which helped to  build more homes, more schools, more libraries, and more hospitals than any  single session of Congress in the history of our Republic.  
1964-5	1964	All this and more can and must be done. It can be done by this summer, and  it can be done without any increase in spending. In fact, under the budget  that I shall shortly submit, it can be done with an actual reduction in  Federal expenditures and Federal employment.  
1964-6	1964	We have in 1964 a unique opportunity and obligation--to prove the success  of our system; to disprove those cynics and critics at home and abroad who  question our purpose and our competence.  
1964-7	1964	If we fail, if we fritter and fumble away our opportunity in needless,  senseless quarrels between Democrats and Republicans, or between the House  and the Senate, or between the South and North, or between the Congress and  the administration, then history will rightfully judge us harshly. But if  we succeed, if we can achieve these goals by forging in this country a  greater sense of union, then, and only then, can we take full satisfaction  in the State of the Union. II.  
1964-8	1964	Here in the Congress you can demonstrate effective legislative leadership  by discharging the public business with clarity and dispatch, voting each  important proposal up, or voting it down, but at least bringing it to a  fair and a final vote.  
1964-9	1964	Let us carry forward the plans and programs of John Fitzgerald Kennedy--not  because of our sorrow or sympathy, but because they are right.  
1964-10	1964	In his memory today, I especially ask all members of my own political  faith, in this election year, to put your country ahead of your party, and  to always debate principles; never debate personalities.  
1964-11	1964	For my part, I pledge a progressive administration which is efficient, and  honest and frugal. The budget to be submitted to the Congress shortly is in  full accord with this pledge.  
1964-12	1964	It will cut our deficit in half--from $10 billion to $4,900 million. It  will be, in proportion to our national output, the smallest budget since  1951.  
1964-13	1964	It will call for a substantial reduction in Federal employment, a feat  accomplished only once before in the last 10 years. While maintaining the  full strength of our combat defenses, it will call for the lowest number of  civilian personnel in the Department of Defense since 1950.  
1964-14	1964	It will call for total expenditures of $97,900 million--compared to $98,400  million for the current year, a reduction of more than $500 million. It  will call for new obligational authority of $103,800 million--a reduction  of more than $4 billion below last year's request of $107,900 million.  
1964-15	1964	But it is not a standstill budget, for America cannot afford to stand  still. Our population is growing. Our economy is more complex. Our people's  needs are expanding.  
1964-16	1964	But by closing down obsolete installations, by curtailing less urgent  programs, by cutting back where cutting back seems to be wise, by insisting  on a dollar's worth for a dollar spent, I am able to recommend in this  reduced budget the most Federal support in history for education, for  health, for retraining the unemployed, and for helping the economically and  the physically handicapped.  
1964-17	1964	This budget, and this year's legislative program, are designed to help each  and every American citizen fulfill his basic hopes--his hopes for a fair  chance to make good; his hopes for fair play from the law; his hopes for a  full-time job on full-time pay; his hopes for a decent home for his family  in a decent community; his hopes for a good school for his children with  good teachers; and his hopes for security when faced with sickness or  unemployment or old age. III.  
1964-18	1964	Unfortunately, many Americans live on the outskirts of hope--some because  of their poverty, and some because of theft color, and all too many because  of both. Our task is to help replace their despair with opportunity.  
1964-19	1964	This administration today, here and now, declares unconditional war on  poverty in America. I urge this Congress and all Americans to join with me  in that effort.  
1964-20	1964	It will not be a short or easy struggle, no single weapon or strategy will  suffice, but we shall not rest until that war is won. The richest Nation on  earth can afford to win it. We cannot afford to lose it. One thousand  dollars invested in salvaging an unemployable youth today can return  $40,000 or more in his lifetime.  
1964-21	1964	Poverty is a national problem, requiring improved national organization and  support. But this attack, to be effective, must also be organized at the  State and the local level and must be supported and directed by State and  local efforts.  
1964-22	1964	For the war against poverty will not be won here in Washington. It must be  won in the field, in every private home, in every public office, from the  courthouse to the White House.  
1964-23	1964	The program I shall propose will emphasize this cooperative approach to  help that one-fifth of all American families with incomes too small to even  meet their basic needs.  
1964-24	1964	Our chief weapons in a more pinpointed attack will be better schools, and  better health, and better homes, and better training, and better job  opportunities to help more Americans, especially young Americans, escape  from squalor and misery and unemployment rolls where other citizens help to  carry them.  
1964-25	1964	Very often a lack of jobs and money is not the cause of poverty, but the  symptom. The cause may lie deeper in our failure to give our fellow  citizens a fair chance to develop their own capacities, in a lack of  education and training, in a lack of medical care and housing, in a lack of  decent communities in which to live and bring up their children.  
1964-26	1964	But whatever the cause, our joint Federal-local effort must pursue poverty,  pursue it wherever it exists--in city slums and small towns, in  sharecropper shacks or in migrant worker camps, on Indian Reservations,  among whites as well as Negroes, among the young as well as the aged, in  the boom towns and in the depressed areas.  
1964-27	1964	Our aim is not only to relieve the symptom of poverty, but to cure it and,  above all, to prevent it. No single piece of legislation, however, is going  to suffice.  
1964-28	1964	We will launch a special effort in the chronically distressed areas of  Appalachia.  
1964-29	1964	We must expand our small but our successful area redevelopment program.  
1964-30	1964	We must enact youth employment legislation to put jobless, aimless,  hopeless youngsters to work on useful projects.  
1964-31	1964	We must distribute more food to the needy through a broader food stamp  program.  
1964-32	1964	We must create a National Service Corps to help the economically  handicapped of our own country as the Peace Corps now helps those abroad.  
1964-33	1964	We must modernize our unemployment insurance and establish a high-level  commission on automation. If we have the brain power to invent these  machines, we have the brain power to make certain that they are a boon and  not a bane to humanity.  
1964-34	1964	We must extend the coverage of our minimum wage laws to more than 2 million  workers now lacking this basic protection of purchasing power.  
1964-35	1964	We must, by including special school aid funds as part of our education  program, improve the quality of teaching, training, and counseling in our  hardest hit areas.  
1964-36	1964	We must build more libraries in every area and more hospitals and nursing  homes under the Hill-Burton Act, and train more nurses to staff them.  
1964-37	1964	We must provide hospital insurance for our older citizens financed by every  worker and his employer under Social Security, contributing no more than $1  a month during the employee's working career to protect him in his old age  in a dignified manner without cost to the Treasury, against the devastating  hardship of prolonged or repeated illness.  
1964-38	1964	We must, as a part of a revised housing and urban renewal program, give  more help to those displaced by slum clearance, provide more housing for  our poor and our elderly, and seek as our ultimate goal in our free  enterprise system a decent home for every American family.  
1964-39	1964	We must help obtain more modern mass transit within our communities as well  as low-cost transportation between them.  
1964-40	1964	Above all, we must release $11 billion of tax reduction into the private  spending stream to create new jobs and new markets in every area of this  land. IV.  
1964-41	1964	These programs are obviously not for the poor or the underprivileged alone.  Every American will benefit by the extension of social security to cover  the hospital costs of their aged parents. Every American community will  benefit from the construction or modernization of schools, libraries,  hospitals, and nursing homes, from the training of more nurses and from the  improvement of urban renewal in public transit. And every individual  American taxpayer and every corporate taxpayer will benefit from the  earliest possible passage of the pending tax bill from both the new  investment it will bring and the new jobs that it will create.  
1964-42	1964	That tax bill has been thoroughly discussed for a year. Now we need action.  The new budget clearly allows it. Our taxpayers surely deserve it. Our  economy strongly demands it. And every month of delay dilutes its benefits  in 1964 for consumption, for investment, and for employment.  
1964-43	1964	For until the bill is signed, its investment incentives cannot be deemed  certain, and the withholding rate cannot be reduced--and the most damaging  and devastating thing you can do to any businessman in America is to keep  him in doubt and to keep him guessing on what our tax policy is. And I say  that we should now reduce to 14 percent instead of 15 percent our  withholding rate.  
1964-44	1964	I therefore urge the Congress to take final action on this bill by the  first of February, if at all possible. For however proud we may be of the  unprecedented progress of our free enterprise economy over the last 3  years, we should not and we cannot permit it to pause.  
1964-45	1964	In 1963, for the first time in history, we crossed the 70 million job mark,  but we will soon need more than 75 million jobs. In 1963 our gross national  product reached the $600 billion level--$100 billion higher than when we  took office. But it easily could and it should be still $30 billion higher  today than it is.  
1964-46	1964	Wages and profits and family income are also at their highest levels in  history--but I would remind you that 4 million workers and 13 percent of  our industrial capacity are still idle today.  
1964-47	1964	We need a tax cut now to keep this country moving. V.  
1964-48	1964	For our goal is not merely to spread the work. Our goal is to create more  jobs. I believe the enactment of a 35-hour week would sharply increase  costs, would invite inflation, would impair our ability to compete, and  merely share instead of creating employment. But I am equally opposed to  the 45- or 50-hour week in those industries where consistently excessive  use of overtime causes increased unemployment.  
1964-49	1964	So, therefore, I recommend legislation authorizing the creation of a  tripartite industry committee to determine on an industry-by-industry basis  as to where a higher penalty rate for overtime would increase job openings  without unduly increasing costs, and authorizing the establishment of such  higher rates. VI.  
1964-50	1964	Let me make one principle of this administration abundantly clear: All of  these increased opportunities--in employment, in education, in housing, and  in every field--must be open to Americans of every color. As far as the writ  of Federal law will run, we must abolish not some, but all racial  discrimination. For this is not merely an economic issue, or a social,  political, or international issue. It is a moral issue, and it must be met  by the passage this session of the bill now pending in the House.  
1964-51	1964	All members of the public should have equal access to facilities open to  the public. All members of the public should be equally eligible for  Federal benefits that are financed by the public. All members of the public  should have an equal chance to vote for public officials and to send their  children to good public schools and to contribute their talents to the  public good.  
1964-52	1964	Today, Americans of all races stand side by side in Berlin and in Viet Nam.  They died side by side in Korea. Surely they can work and eat and travel  side by side in their own country. VII.  
1964-53	1964	We must also lift by legislation the bars of discrimination against those  who seek entry into our country, particularly those who have much needed  skills and those joining their families.  
1964-54	1964	In establishing preferences, a nation that was built by the immigrants of  all lands can ask those who now seek admission: "What can you do for our  country?" But we should not be asking: "In what country were you born?"  VIII.  
1964-55	1964	For our ultimate goal is a world without war, a world made safe for  diversity, in which all men, goods, and ideas can freely move across every  border and every boundary.  
1964-56	1964	We must advance toward this goal in 1964 in at least 10 different ways, not  as partisans, but as patriots.  
1964-57	1964	First, we must maintain--and our reduced defense budget will maintain--that  margin of military safety and superiority obtained through 3 years of  steadily increasing both the quality and the quantity of our strategic, our  conventional, and our antiguerilla forces. In 1964 we will be better  prepared than ever before to defend the cause of freedom, whether it is  threatened by outright aggression or by the infiltration practiced by those  in Hanoi and Havana, who ship arms and men across international borders to  foment insurrection. And we must continue to use that strength as John  Kennedy used it in the Cuban crisis and for the test ban treaty--to  demonstrate both the futility of nuclear war and the possibilities of  lasting peace.  
1964-58	1964	Second, we must take new steps--and we shall make new proposals at  Geneva--toward the control and the eventual abolition of arms. Even in the  absence of agreement, we must not stockpile arms beyond our needs or seek  an excess of military power that could be provocative as well as wasteful.  
1964-59	1964	It is in this spirit that in this fiscal year we are cutting back our  production of enriched uranium by 25 percent. We are shutting down four  plutonium piles. We are closing many nonessential military installations.  And it is in this spirit that we today call on our adversaries to do the  same.  
1964-60	1964	Third, we must make increased use of our food as an instrument of  peace--making it available by sale or trade or loan or donation--to hungry  people in all nations which tell us of their needs and accept proper  conditions of distribution.  
1964-61	1964	Fourth, we must assure our pre-eminence in the peaceful exploration of  outer space, focusing on an expedition to the moon in this decade--in  cooperation with other powers if possible, alone if necessary.  
1964-62	1964	Fifth, we must expand world trade. Having recognized in the Act of 1962  that we must buy as well as sell, we now expect our trading partners to  recognize that we must sell as well as buy. We are willing to give them  competitive access to our market, asking only that they do the same for  us.  
1964-63	1964	Sixth, we must continue, through such measures as the interest equalization  tax, as well as the cooperation of other nations, our recent progress  toward balancing our international accounts.  
1964-64	1964	This administration must and will preserve the present gold value of the  dollar.  
1964-65	1964	Seventh, we must become better neighbors with the free states of the  Americas, working with the councils of the OAS, with a stronger Alliance  for Progress, and with all the men and women of this hemisphere who really  believe in liberty and justice for all.  
1964-66	1964	Eighth, we must strengthen the ability of free nations everywhere to  develop their independence and raise their standard of living, and thereby  frustrate those who prey on poverty and chaos. To do this, the rich must  help the poor--and we must do our part. We must achieve a more rigorous  administration of our development assistance, with larger roles for private  investors, for other industrialized nations, and for international agencies  and for the recipient nations themselves.  
1964-67	1964	Ninth, we must strengthen our Atlantic and Pacific partnerships, maintain  our alliances and make the United Nations a more effective instrument for  national independence and international order.  
1964-68	1964	Tenth, and finally, we must develop with our allies new means of bridging  the gap between the East and the West, facing danger boldly wherever danger  exists, but being equally bold in our search for new agreements which can  enlarge the hopes of all, while violating the interests of none.  
1964-69	1964	In short, I would say to the Congress that we must be constantly prepared  for the worst, and constantly acting for the best. We must be strong enough  to win any war, and we must be wise enough to prevent one.  
1964-70	1964	We shall neither act as aggressors nor tolerate acts of aggression. We  intend to bury no one, and we do not intend to be buried.  
1964-71	1964	We can fight, if we must, as we have fought before, but we pray that we  will never have to fight again. IX.  
1964-72	1964	My good friends and my fellow Americans: In these last 7 sorrowful weeks,  we have learned anew that nothing is so enduring as faith, and nothing is  so degrading as hate.  
1964-73	1964	John Kennedy was a victim of hate, but he was also a great builder of  faith--faith in our fellow Americans, whatever their creed or their color  or their station in life; faith in the future of man, whatever his  divisions and differences.  
1964-74	1964	This faith was echoed in all parts of the world. On every continent and in  every land to which Mrs. Johnson and I traveled, we found faith and hope  and love toward this land of America and toward our people.  
1964-75	1964	So I ask you now in the Congress and in the country to join with me in  expressing and fulfilling that faith in working for a nation, a nation that  is free from want and a world that is free from hate--a world of peace and  justice, and freedom and abundance, for our time and for all time to come.  
1965-1	1965	On this Hill which was my home, I am stirred by old friendships.  
1965-2	1965	Though total agreement between the Executive and the Congress is  impossible, total respect is important.  
1965-3	1965	I am proud to be among my colleagues of the Congress whose legacy to their  trust is their loyalty to their Nation.  
1965-4	1965	I am not unaware of the inner emotions of the new Members of this body  tonight.  
1965-5	1965	Twenty-eight years ago, I felt as you do now. You will soon learn that you  are among men whose first love is their country, men who try each day to do  as best they can what they believe is right.  
1965-6	1965	We are entering the third century of the pursuit of American union.  
1965-7	1965	Two hundred years ago, in 1765, nine assembled colonies first joined  together to demand freedom from arbitrary power.  
1965-8	1965	For the first century we struggled to hold together the first continental  union of democracy in the history of man. One hundred years ago, in 1865,  following a terrible test of blood and fire, the compact of union was  finally sealed.  
1965-9	1965	For a second century we labored to establish a unity of purpose and  interest among the many groups which make up the American community.  
1965-10	1965	That struggle has often brought pain and violence. It is not yet over. But  we have achieved a unity of interest among our people that is unmatched in  the history of freedom.  
1965-11	1965	And so tonight, now, in 1965, we begin a new quest for union. We seek the  unity of man with the world that he has built--with the knowledge that can  save or destroy him--with the cities which can stimulate or stifle  him--with the wealth and the machines which can enrich or menace his  spirit.  
1965-12	1965	We seek to establish a harmony between man and society which will allow  each of us to enlarge the meaning of his life and all of us to elevate the  quality of our civilization. This is the search that we begin tonight.  
1965-13	1965	STATE OF THE WORLD  
1965-14	1965	But the unity we seek cannot realize its full promise in  isolation. For today the state of the Union depends, in large measure, upon  the state of the world.  
1965-15	1965	Our concern and interest, compassion and vigilance, extend to every corner  of a dwindling planet.  
1965-16	1965	Yet, it is not merely our concern but the concern of all free men. We will  not, and we should not, assume that it is the task of Americans alone to  settle all the conflicts of a torn and troubled world.  
1965-17	1965	Let the foes of freedom take no comfort from this. For in concert with  other nations, we shall help men defend their freedom.  
1965-18	1965	Our first aim remains the safety and the well-being of our own country.  
1965-19	1965	We are prepared to live as good neighbors with all, but we cannot be  indifferent to acts designed to injure our interests, or our citizens, or  our establishments abroad. The community of nations requires mutual  respect. We shall extend it--and we shall expect it.  
1965-20	1965	In our relations with the world we shall follow the example of Andrew  Jackson who said: "I intend to ask for nothing that is not clearly right  and to submit to nothing that is wrong." And he promised, that "the honor  of my country shall never be stained by an apology from me for the  statement of truth or for the performance of duty." That was this Nation's  policy in the 1830's and that is this Nation's policy in the 1960's.  
1965-21	1965	Our own freedom and growth have never been the final goal of the American  dream.  
1965-22	1965	We were never meant to be an oasis of liberty and abundance in a worldwide  desert of disappointed dreams. Our Nation was created to help strike away  the chains of ignorance and misery and tyranny wherever they keep man less  than God means him to be.  
1965-23	1965	We are moving toward that destiny, never more rapidly than we have moved in  the last 4 years.  
1965-24	1965	In this period we have built a military power strong enough to meet any  threat and destroy any adversary. And that superiority will continue to  grow so long as this office is mine--and you sit on Capitol Hill.  
1965-25	1965	In this period no new nation has become Communist, and the unity of the  Communist empire has begun to crumble.  
1965-26	1965	In this period we have resolved in friendship our disputes with our  neighbors of the hemisphere, and joined in an Alliance for Progress toward  economic growth and political democracy.  
1965-27	1965	In this period we have taken more steps toward peace--including the test  ban treaty--than at any time since the cold war began.  
1965-28	1965	In this period we have relentlessly pursued our advances toward the  conquest of space.  
1965-29	1965	Most important of all, in this period, the United States has reemerged into  the fullness of its self-confidence and purpose. No longer are we called  upon to get America moving. We are moving. No longer do we doubt our  strength or resolution. We are strong and we have proven our resolve.  
1965-30	1965	No longer can anyone wonder whether we are in the grip of historical decay.  We know that history is ours to make. And if there is great danger, there  is now also the excitement of great expectations.  
1965-31	1965	AMERICA AND THE COMMUNIST NATIONS  
1965-32	1965	Yet we still live in a troubled and  perilous world. There is no longer a single threat. There are many. They  differ in intensity and in danger. They require different attitudes and  different answers.  
1965-33	1965	With the Soviet Union we seek peaceful understandings that can lessen the  danger to freedom.  
1965-34	1965	Last fall I asked the American people to choose that course. I will carry  forward their command.  
1965-35	1965	If we are to live together in peace, we must come to know each other  better.  
1965-36	1965	I am sure that the American people would welcome a chance to listen to the  Soviet leaders on our television--as I would like the Soviet people to hear  our leaders on theirs.  
1965-37	1965	I hope the new Soviet leaders can visit America so they can learn about our  country at firsthand.  
1965-38	1965	In Eastern Europe restless nations are slowly beginning to assert their  identity. Your Government, assisted by the leaders in American labor and  business, is now exploring ways to increase peaceful trade with these  countries and with the Soviet Union. I will report our conclusions to the  Congress.  
1965-39	1965	In Asia, communism wears a more aggressive face. We see that in Viet-Nam.  Why are we there?  
1965-40	1965	We are there, first, because a friendly nation has asked us for help  against the Communist aggression. Ten years ago our President pledged our  help. Three Presidents have supported that pledge. We will not break it  now.  
1965-41	1965	Second, our own security is tied to the peace of Asia. Twice in one  generation we have had to fight against aggression in the Far East. To  ignore aggression now would only increase the danger of a much larger war.  
1965-42	1965	Our goal is peace in southeast Asia. That will come only when aggressors  leave their neighbors in peace.  
1965-43	1965	What is at stake is the cause of freedom and in that cause America will  never be found wanting.  
1965-44	1965	THE NON-COMMUNIST WORLD  
1965-45	1965	But communism is not the only source of trouble and  unrest. There are older and deeper sources--in the misery of nations and in  man's irrepressible ambition for liberty and a better life.  
1965-46	1965	With the free Republics of Latin America I have always felt--and my country  has always felt--very special ties of interest and affection. It will be  the purpose of my administration to strengthen these ties. Together we  share and shape the destiny of the new world. In the coming year I hope to  pay a visit to Latin America. And I will steadily enlarge our commitment to  the Alliance for Progress as the instrument of our war against poverty and  injustice in this hemisphere.  
1965-47	1965	In the Atlantic community we continue to pursue our goal of 20 years--a  Europe that is growing in strength, unity, and cooperation with America. A  great unfinished task is the reunification of Germany through  self-determination.  
1965-48	1965	This European policy is not based on any abstract design. It is based on  the realities of common interests and common values, common dangers and  common expectations. These realities will continue to have their  way--especially, I think, in our expanding trade and especially in our  common defense.  
1965-49	1965	Free Americans have shaped the policies of the United States. And because  we know these realities, those policies have been, and will be, in the  interest of Europe.  
1965-50	1965	Free Europeans must shape the course of Europe. And, for the same reasons,  that course has been, and will be, in our interest and in the interest of  freedom.  
1965-51	1965	I found this truth confirmed in my talks with European leaders in the last  year. I hope to repay these visits to some of our friends in Europe this  year.  
1965-52	1965	In Africa and Asia we are witnessing the turbulent unfolding of new nations  and continents.  
1965-53	1965	We welcome them to the society of nations.  
1965-54	1965	We are committed to help those seeking to strengthen their own  independence, and to work most closely with those governments dedicated to  the welfare of all of their people.  
1965-55	1965	We seek not fidelity to an iron faith, but a diversity of belief as varied  as man himself. We seek not to extend the power of America but the progress  of humanity. We seek not to dominate others but to strengthen the freedom  of all people.  
1965-56	1965	I will seek new ways to use our knowledge to help deal with the explosion  in world population and the growing scarcity in world resources.  
1965-57	1965	Finally, we renew our commitment to the continued growth and the  effectiveness of the United Nations. The frustrations of the United Nations  are a product of the world that we live in, and not of the institution  which gives them voice. It is far better to throw these differences open to  the assembly of nations than to permit them to fester in silent danger.  
1965-58	1965	These are some of the goals of the American Nation in the world in which we  live.  
1965-59	1965	For ourselves we seek neither praise nor blame, neither gratitude nor  obedience.  
1965-60	1965	We seek peace.  
1965-61	1965	We seek freedom.  
1965-62	1965	We seek to enrich the life of man.  
1965-63	1965	For that is the world in which we will flourish and that is the world that  we mean for all men to ultimately have.  
1965-64	1965	TOWARD THE GREAT SOCIETY  
1965-65	1965	World affairs will continue to call upon our energy  and our courage.  
1965-66	1965	But today we can turn increased attention to the character of American  life.  
1965-67	1965	We are in the midst of the greatest upward surge of economic well-being in  the history of any nation.  
1965-68	1965	Our flourishing progress has been marked by price stability that is  unequalled in the world. Our balance of payments deficit has declined and  the soundness of our dollar is unquestioned. I pledge to keep it that way  and I urge business and labor to cooperate to that end.  
1965-69	1965	We worked for two centuries to climb this peak of prosperity. But we are  only at the beginning of the road to the Great Society. Ahead now is a  summit where freedom from the wants of the body can help fulfill the needs  of the spirit.  
1965-70	1965	We built this Nation to serve its people.  
1965-71	1965	We want to grow and build and create, but we want progress to be the  servant and not the master of man.  
1965-72	1965	We do not intend to live in the midst of abundance, isolated from neighbors  and nature, confined by blighted cities and bleak suburbs, stunted by a  poverty of learning and an emptiness of leisure.  
1965-73	1965	The Great Society asks not how much, but how good; not only how to create  wealth but how to use it; not only how fast we are going, but where we are  headed.  
1965-74	1965	It proposes as the first test for a nation: the quality of its people.  
1965-75	1965	This kind of society will not flower spontaneously from swelling riches and  surging power.  
1965-76	1965	It will not be the gift of government or the creation of presidents. It  will require of every American, for many generations, both faith in the  destination and the fortitude to make the journey.  
1965-77	1965	And like freedom itself, it will always be challenge and not fulfillment.  And tonight we accept that challenge.  
1965-78	1965	A NATIONAL AGENDA  
1965-79	1965	I propose that we begin a program in education to ensure  every American child the fullest development of his mind and skills.  
1965-80	1965	I propose that we begin a massive attack on crippling and killing  diseases.  
1965-81	1965	I propose that we launch a national effort to make the American city a  better and a more stimulating place to live.  
1965-82	1965	I propose that we increase the beauty of America and end the poisoning of  our rivers and the air that we breathe.  
1965-83	1965	I propose that we carry out a new program to develop regions of our country  that are now suffering from distress and depression.  
1965-84	1965	I propose that we make new efforts to control and prevent crime and  delinquency.  
1965-85	1965	I propose that we eliminate every remaining obstacle to the right and the  opportunity to vote.  
1965-86	1965	I propose that we honor and support the achievements of thought and the  creations of art.  
1965-87	1965	I propose that we make an all-out campaign against waste and inefficiency.  
1965-88	1965	THE TASK  
1965-89	1965	Our basic task is threefold:  
1965-90	1965	First, to keep our economy growing;  
1965-91	1965	--to open for all Americans the opportunity that is now enjoyed by most  Americans;  
1965-92	1965	--and to improve the quality of life for all.  
1965-93	1965	In the next 6 weeks I will submit special messages with detailed proposals  for national action in each of these areas.  
1965-94	1965	Tonight I would like just briefly to explain some of my major  recommendations in the three main areas of national need.  
1965-95	1965	1. A GROWING ECONOMY  
1965-96	1965	BASIC POLICIES  
1965-97	1965	First, we must keep our Nation prosperous. We seek full  employment opportunity for every American citizen. I will present a budget  designed to move the economy forward. More money will be left in the hands  of the consumer by a substantial cut in excise taxes. We will continue  along the path toward a balanced budget in a balanced economy.  
1965-98	1965	I confidently predict--what every economic sign tells us tonight--the  continued flourishing of the American economy.  
1965-99	1965	But we must remember that fear of a recession can contribute to the fact of  a recession. The knowledge that our Government will, and can, move swiftly  will strengthen the confidence of investors and business.  
1965-100	1965	Congress can reinforce this confidence by insuring that its procedures  permit rapid action on temporary income tax cuts. And special funds for  job-creating public programs should be made available for immediate use if  recession threatens.  
1965-101	1965	Our continued prosperity demands continued price stability. Business,  labor, and the consumer all have a high stake in keeping wages and prices  within the framework of the guideposts that have already served the Nation  so well.  
1965-102	1965	Finding new markets abroad for our goods depends on the initiative of  American business. But we stand ready--with credit and other help--to  assist the flow of trade which will benefit the entire Nation.  
1965-103	1965	ON THE FARMS  
1965-104	1965	Our economy owes much to the efficiency of our farmers. We must  continue to assure them the opportunity to earn a fair reward. I have  instructed the Secretary of Agriculture to lead a major effort to find new  approaches to reduce the heavy cost of our farm programs and to direct more  of our effort to the small farmer who needs the help the most.  
1965-105	1965	INCREASED PROSPERITY  
1965-106	1965	We can help insure continued prosperity through:  
1965-107	1965	--a regional recovery program to assist the development of stricken areas  left behind by our national progress;  
1965-108	1965	--further efforts to provide our workers with the skills demanded by modern  technology, for the laboring-man is an indispensable force in the American  system;  
1965-109	1965	--the extension of the minimum wage to more than 2 million unprotected  workers;  
1965-110	1965	--the improvement and the modernization of the unemployment compensation  system.  
1965-111	1965	And as pledged in our 1960 and 1964 Democratic platforms, I will propose to  Congress changes in the Taft-Hartley Act including section 14(b). I will do  so hoping to reduce the conflicts that for several years have divided  Americans in various States of our Union.  
1965-112	1965	In a country that spans a continent modern transportation is vital to  continued growth.  
1965-113	1965	TRANSPORTATION FOR GROWTH  
1965-114	1965	I will recommend heavier reliance on competition  in transportation and a new policy for our merchant marine.  
1965-115	1965	I will ask for funds to study high-speed rail transportation between urban  centers. We will begin with test projects between Washington and Boston. On  high-speed trains, passengers could travel this distance in less than 4  hours.  
1965-116	1965	II. OPPORTUNITY FOR ALL  
1965-117	1965	Second, we must open opportunity to all our people.  
1965-118	1965	Most Americans enjoy a good life. But far too many are still trapped in  poverty and idleness and fear.  
1965-119	1965	Let a just nation throw open to them the city of promise:  
1965-120	1965	--to the elderly, by providing hospital care under social security and by  raising benefit payments to those struggling to maintain the dignity of  their later years;  
1965-121	1965	--to the poor and the unfortunate, through doubling the war against poverty  this year;  
1965-122	1965	--to Negro Americans, through enforcement of the civil rights law and  elimination of barriers to the right to vote;  
1965-123	1965	--to those in other lands that are seeking the promise of America, through  an immigration law based on the work a man can do and not where he was born  or how he spells his name.  
1965-124	1965	III. TO ENRICH THE LIFE OF ALL  
1965-125	1965	Our third goal is to improve the quality of  American life.  
1965-126	1965	THROUGH EDUCATION  
1965-127	1965	We begin with learning.  
1965-128	1965	Every child must have the best education that this Nation can provide.  
1965-129	1965	Thomas Jefferson said that no nation can be both ignorant and free. Today  no nation can be both ignorant and great.  
1965-130	1965	In addition to our existing programs, I will recommend a new program for  schools and students with a first year authorization of $1,500 million.  
1965-131	1965	It will help at every stage along the road to learning.  
1965-132	1965	For the preschool years we will help needy children become aware of the  excitement of learning.  
1965-133	1965	For the primary and secondary school years we will aid public schools  serving low-income families and assist students in both public and private  schools.  
1965-134	1965	For the college years we will provide scholarships to high school students  of the greatest promise and the greatest need and we will guarantee  low-interest loans to students continuing their college studies.  
1965-135	1965	New laboratories and centers will help our schools--help them lift their  standards of excellence and explore new methods of teaching. These centers  will provide special training for those who need and those who deserve  special treatment.  
1965-136	1965	THROUGH BETTER HEALTH  
1965-137	1965	Greatness requires not only an educated people but a  healthy people.  
1965-138	1965	Our goal is to match the achievements of our medicine to the afflictions of  our people.  
1965-139	1965	We already carry on a large program in this country for research and  health.  
1965-140	1965	In addition, regional medical centers can provide the most advanced  diagnosis and treatment for heart disease and cancer and stroke and other  major diseases.  
1965-141	1965	New support for medical and dental education will provide the trained  people to apply our knowledge.  
1965-142	1965	Community centers can help the mentally ill and improve health care for  school-age children from poor families, including services for the mentally  retarded.  
1965-143	1965	THROUGH IMPROVING THE WORLD WE LIVE IN  
1965-144	1965	The City  
1965-145	1965	An educated and healthy people require surroundings in harmony with  their hopes. In our urban areas the central problem today is to protect and  restore man's satisfaction in belonging to a community where he can find  security and significance.  
1965-146	1965	The first step is to break old patterns--to begin to think and work and  plan for the development of the entire metropolitan areas. We will take  this step with new programs of help for the basic community facilities and  for neighborhood centers of health and recreation.  
1965-147	1965	New and existing programs will be open to those cities which work together  to develop unified long-range policies for metropolitan areas.  
1965-148	1965	We must also make some very important changes in our housing programs if we  are to pursue these same basic goals.  
1965-149	1965	So a Department of Housing and Urban Development will be needed to  spearhead this effort in our cities.  
1965-150	1965	Every citizen has the right to feel secure in his home and on the streets  of his community.  
1965-151	1965	To help control crime, we will recommend programs:  
1965-152	1965	--to train local law enforcement officers;  
1965-153	1965	--to put the best techniques of modern science at their disposal;  
1965-154	1965	--to discover the causes of crime and better ways to prevent it.  
1965-155	1965	I will soon assemble a panel of outstanding experts of this Nation to  search out answers to the national problem of crime and delinquency, and I  welcome the recommendations and the constructive efforts of the Congress.  The Beauty of America  
1965-156	1965	For over three centuries the beauty of America has sustained our spirit and  has enlarged our vision. We must act now to protect this heritage. In a  fruitful new partnership with the States and the cities the next decade  should be a conservation milestone. We must make a massive effort to save  the countryside and to establish--as a green legacy for tomorrow--more  large and small parks, more seashores and open spaces than have been  created during any other period in our national history.  
1965-157	1965	A new and substantial effort must be made to landscape highways to provide  places of relaxation and recreation wherever our roads run,  
1965-158	1965	Within our cities imaginative programs are needed to landscape streets and  to transform open areas into places of beauty and recreation.  
1965-159	1965	We will seek legal power to prevent pollution of our air and water before  it happens. We will step up our effort to control harmful wastes, giving  first priority to the cleanup of our most contaminated rivers. We will  increase research to learn much more about the control of pollution.  
1965-160	1965	We hope to make the Potomac a model of beauty here in the Capital, and  preserve unspoiled stretches of some of our waterways with a Wild Rivers  bill.  
1965-161	1965	More ideas for a beautiful America will emerge from a White House  Conference on Natural Beauty which I will soon call.  
1965-162	1965	Art and Science  
1965-163	1965	We must also recognize and encourage those who can be  pathfinders for the Nation's imagination and understanding.  
1965-164	1965	To help promote and honor creative achievements, I will propose a National  Foundation on the Arts.  
1965-165	1965	To develop knowledge which will enrich our lives and ensure our progress, I  will recommend programs to encourage basic science, particularly in the  universities--and to bring closer the day when the oceans will supply our  growing need for fresh water.  
1965-166	1965	For government to serve these goals it must be modern in structure,  efficient in action, and ready for any emergency.  
1965-167	1965	I am busy, currently, reviewing the structure of the entire executive  branch of this Government. I hope to reshape it and to reorganize it to  meet more effectively the tasks of the 20th century.  
1965-168	1965	Wherever waste is found, I will eliminate it.  
1965-169	1965	Last year we saved almost $3,500 million by eliminating waste in the  National Government.  
1965-170	1965	And I intend to do better this year.  
1965-171	1965	And very soon I will report to you on our progress and on new economies  that your Government plans to make.  
1965-172	1965	Even the best of government is subject to the worst of hazards.  
1965-173	1965	I will propose laws to insure the necessary continuity of leadership should  the President become disabled or die.  
1965-174	1965	In addition, I will propose reforms in the electoral college--leaving  undisturbed the vote by States--but making sure that no elector can  substitute his will for that of the people.  
1965-175	1965	Last year, in a sad moment, I came here and I spoke to you after 33 years  of public service, practically all of them here on this Hill.  
1965-176	1965	This year I speak after 1 year as President of the United States.  
1965-177	1965	Many of you in this Chamber are among my oldest friends. We have shared  many happy moments and many hours of work, and we have watched many  Presidents together. Yet, only in the White House can you finally know the  full weight of this Office.  
1965-178	1965	The greatest burden is not running the huge operations of government--or  meeting daily troubles, large and small--or even working with the  Congress.  
1965-179	1965	A President's hardest task is not to do what is right, but to know what is  right.  
1965-180	1965	Yet the Presidency brings no special gift of prophecy or foresight. You  take an oath, you step into an office, and you must then help guide a great  democracy.  
1965-181	1965	The answer was waiting for me in the land where I was born.  
1965-182	1965	It was once barren land. The angular hills were covered with scrub cedar  and a few large live oaks. Little would grow in that harsh caliche soil of  my country. And each spring the Pedernales River would flood our valley.  
1965-183	1965	But men came and they worked and they endured and they built.  
1965-184	1965	And tonight that country is abundant; abundant with fruit and cattle and  goats and sheep, and there are pleasant homes and lakes and the floods are  gone.  
1965-185	1965	Why did men come to that once forbidding land?  
1965-186	1965	Well, they were restless, of course, and they had to be moving on. But  there was more than that. There was a dream--a dream of a place where a  free man could build for himself, and raise his children to a better  life--a dream of a continent to be conquered, a world to be won, a nation  to be made.  
1965-187	1965	Remembering this, I knew the answer.  
1965-188	1965	A President does not shape a new and personal vision of America.  
1965-189	1965	He collects it from the scattered hopes of the American past.  
1965-190	1965	It existed when the first settlers saw the coast of a new world, and when  the first pioneers moved westward.  
1965-191	1965	It has guided us every step of the way.  
1965-192	1965	It sustains every President. But it is also your inheritance and it belongs  equally to all the people that we all serve.  
1965-193	1965	It must be interpreted anew by each generation for its own needs; as I have  tried, in part, to do tonight.  
1965-194	1965	It shall lead us as we enter the third century of the search for a more  perfect union?  
1965-195	1965	This, then, is the state of the Union: Free and restless, growing and full  of hope.  
1965-196	1965	So it was in the beginning.  
1965-197	1965	So it shall always be, while God is willing, and we are strong enough to  keep the faith.  
1966-1	1966	Mr. Speaker, Mr. President, Members of the House and the Senate, my fellow  Americans:  
1966-2	1966	I come before you tonight to report on the State of the Union for the third  time.  
1966-3	1966	I come here to thank you and to add my tribute, once more, to the Nation's  gratitude for this, the 89th Congress. This Congress has already reserved  for itself an honored chapter in the history of America.  
1966-4	1966	Our Nation tonight is engaged in a brutal and bitter conflict in Vietnam.  Later on I want to discuss that struggle in some detail with you. It just  must be the center of our concerns.  
1966-5	1966	But we will not permit those who fire upon us in Vietnam to win a victory  over the desires and the intentions of all the American people. This Nation  is mighty enough, its society is healthy enough, its people are strong  enough, to pursue our goals in the rest of the world while still building a  Great Society here at home.  
1966-6	1966	And that is what I have come here to ask of you tonight.  
1966-7	1966	I recommend that you provide the resources to carry forward, with full  vigor, the great health and education programs that you enacted into law  last year.  
1966-8	1966	I recommend that we prosecute with vigor and determination our war on  poverty.  
1966-9	1966	I recommend that you give a new and daring direction to our foreign aid  program, designed to make a maximum attack on hunger and disease and  ignorance in those countries that are determined to help themselves, and to  help those nations that are trying to control population growth.  
1966-10	1966	I recommend that you make it possible to expand trade between the United  States and Eastern Europe and the Soviet Union.  
1966-11	1966	I recommend to you a program to rebuild completely, on a scale never before  attempted, entire central and slum areas of several of our cities in  America.  
1966-12	1966	I recommend that you attack the wasteful and degrading poisoning of our  rivers, and, as the cornerstone of this effort, clean completely entire  large river basins.  
1966-13	1966	I recommend that you meet the growing menace of crime in the streets by  building up law enforcement and by revitalizing the entire Federal system  from prevention to probation.  
1966-14	1966	I recommend that you take additional steps to insure equal justice to all  of our people by effectively enforcing nondiscrimination in Federal and  State jury selection, by making it a serious Federal crime to obstruct  public and private efforts to secure civil rights, and by outlawing  discrimination in the sale and rental of housing.  
1966-15	1966	I recommend that you help me modernize and streamline the Federal  Government by creating a new Cabinet level Department of Transportation and  reorganizing several existing agencies. In turn, I will restructure our  civil service in the top grades so that men and women can easily be  assigned to jobs where they are most needed, and ability will be both  required as well as rewarded.  
1966-16	1966	I will ask you to make it possible for Members of the House of  Representatives to work more effectively in the service of the Nation  through a constitutional amendment extending the term of a Congressman to 4  years, concurrent with that of the President. II.  
1966-17	1966	Because of Vietnam we cannot do all that we should, or all that we would  like to do. We will ruthlessly attack waste and inefficiency. We will make  sure that every dollar is spent with the thrift and with the commonsense  which recognizes how hard the taxpayer worked in order to earn it.  
1966-18	1966	We will continue to meet the needs of our people by continuing to develop  the Great Society.  
1966-19	1966	Last year alone the wealth that we produced increased $47 billion, and it  will soar again this year to a total over $720 billion.  
1966-20	1966	Because our economic policies have produced rising revenues, if you approve  every program that I recommend tonight, our total budget deficit will be  one of the lowest in many years. It will be only $1.8 billion next year.  Total spending in the administrative budget will be $112.8 billion.  Revenues next year will be $111 billion.  
1966-21	1966	On a cash basis--which is the way that you and I keep our family  budget--the Federal budget next year will actually show a surplus. That is  to say, if we include all the money that your Government will take in and  all the money that your Government will spend, your Government next year  will collect one-half billion dollars more than it will spend in the year  1967.  
1966-22	1966	I have not come here tonight to ask for pleasant luxuries or for idle  pleasures. I have come here to recommend that you, the representatives of  the richest Nation on earth, you, the elected servants of a people who live  in abundance unmatched on this globe, you bring the most urgent decencies  of life to all of your fellow Americans.  
1966-23	1966	There are men who cry out: We must sacrifice. Well, let us rather ask them:  Who will they sacrifice? Are they going to sacrifice the children who seek  the learning, or the sick who need medical care, or the families who dwell  in squalor now brightened by the hope of home? Will they sacrifice  opportunity for the distressed, the beauty of our land, the hope of our  poor?  
1966-24	1966	Time may require further sacrifices. And if it does, then we will make  them.  
1966-25	1966	But we will not heed those who wring it from the hopes of the unfortunate  here in a land of plenty.  
1966-26	1966	I believe that we can continue the Great Society while we fight in Vietnam.  But if there are some who do not believe this, then, in the name of  justice, let them call for the contribution of those who live in the  fullness of our blessing, rather than try to strip it from the hands of  those that are most in need.  
1966-27	1966	And let no one think that the unfortunate and the oppressed of this land  sit stifled and alone in their hope tonight. Hundreds of their servants and  their protectors sit before me tonight here in this great Chamber. III.  
1966-28	1966	The Great Society leads us along three roads--growth and justice and  liberation.  
1966-29	1966	I can report to you tonight what you have seen for yourselves already--in  every city and countryside. This Nation is flourishing.  
1966-30	1966	Workers are making more money than ever--with after-tax income in the past  5 years up 33 percent; in the last year alone, up 8 percent.  
1966-31	1966	More people are working than ever before in our history--an increase last  year of 2 1/2 million jobs.  
1966-32	1966	Corporations have greater after-tax earnings than ever in history. For the  past 5 years those earnings have been up over 65 percent, and last year  alone they had a rise of 20 percent.  
1966-33	1966	Average farm income is higher than ever. Over the past 5 years it is up 40  percent, and over the past year it is up 22 percent alone.  
1966-34	1966	I was informed this afternoon by the distinguished Secretary of the  Treasury that his preliminary estimates indicate that our balance of  payments deficit has been reduced from $2.8 billion in 1964 to $1.3  billion, or less, in 1965. This achievement has been made possible by the  patriotic voluntary cooperation of businessmen and bankers working with  your Government.  
1966-35	1966	We must now work together with increased urgency to wipe out this balance  of payments deficit altogether in the next year.  
1966-36	1966	And as our economy surges toward new heights we must increase our vigilance  against the inflation which raises the cost of living and which lowers the  savings of every family in this land. It is essential, to prevent  inflation, that we ask both labor and business to exercise price and wage  restraint, and I do so again tonight.  
1966-37	1966	I believe it desirable, because of increased military expenditures, that  you temporarily restore the automobile and certain telephone excise tax  reductions made effective only 12 days ago. Without raising taxes--or even  increasing the total tax bill paid--we should move to improve our  withholding system so that Americans can more realistically pay as they go,  speed up the collection of corporate taxes, and make other necessary  simplifications of the tax structure at an early date.  
1966-38	1966	I hope these measures will be adequate. But if the necessities of Vietnam  require it, I will not hesitate to return to the Congress for additional  appropriations, or additional revenues if they are needed.  
1966-39	1966	I propose legislation to establish unavoidable requirements for  nondiscriminatory jury selection in Federal and State courts--and to give  the Attorney General the power necessary to enforce those requirements.  
1966-40	1966	I propose legislation to strengthen authority of Federal courts to try  those who murder, attack, or intimidate either civil rights workers or  others exercising their constitutional rights--and to increase penalties to  a level equal to the nature of the crime.  
1966-41	1966	Legislation, resting on the fullest constitutional authority of the Federal  Government, to prohibit racial discrimination in the sale or rental of  housing.  
1966-42	1966	For that other nation within a Nation--the poor--whose distress has now  captured the conscience of America, I will ask the Congress not only to  continue, but to speed up the war on poverty. And in so doing, we will  provide the added energy of achievement with the increased efficiency of  experience.  
1966-43	1966	To improve the life of our rural Americans and our farm population, we will  plan for the future through the establishment of several new Community  Development Districts, improved education through the use of Teacher Corps  teams, better health measures, physical examinations, and adequate and  available medical resources.  
1966-44	1966	For those who labor, I propose to improve unemployment insurance, to expand  minimum wage benefits, and by the repeal of section 14(b) of the  Taft-Hartley Act to make the labor laws in all our States equal to the laws  of the 31 States which do not have tonight right-to-work measures.  
1966-45	1966	And I also intend to ask the Congress to consider measures which, without  improperly invading State and local authority, will enable us effectively  to deal with strikes which threaten irreparable damage to the national  interest.  
1966-46	1966	Yet, slowly, painfully, on the edge of victory, has come the knowledge that  shared prosperity is not enough. In the midst of abundance modern man walks  oppressed by forces which menace and confine the quality of his life, and  which individual abundance alone will not overcome.  
1966-47	1966	We can subdue and we can master these forces--bring increased meaning to  our lives--if all of us, Government and citizens, are bold enough to change  old ways, daring enough to assault new dangers, and if the dream is dear  enough to call forth the limitless capacities of this great people.  
1966-48	1966	This year we must continue to improve the quality of American life.  
1966-49	1966	Let us fulfill and improve the great health and education programs of last  year, extending special opportunities to those who risk their lives in our  Armed Forces.  
1966-50	1966	I urge the House of Representatives to complete action on three programs  already passed by the Senate--the Teacher Corps, rent assistance, and home  rule for the District of Columbia.  
1966-51	1966	In some of our urban areas we must help rebuild entire sections and  neighborhoods containing, in some cases, as many as 100,000 people. Working  together, private enterprise and government must press forward with the  task of providing homes and shops, parks and hospitals, and all the other  necessary parts of a flourishing community where our people can come to  live the good life.  
1966-52	1966	I will offer other proposals to stimulate and to reward planning for the  growth of entire metropolitan areas.  
1966-53	1966	Of all the reckless devastations of our national heritage, none is really  more shameful than the continued poisoning of our rivers and our air.  
1966-54	1966	We must undertake a cooperative effort to end pollution in several river  basins, making additional funds available to help draw the plans and  construct the plants that are necessary to make the waters of our entire  river systems clean, and make them a source of pleasure and beauty for all  of our people.  
1966-55	1966	To attack and to overcome growing crime and lawlessness, I think we must  have a stepped-up program to help modernize and strengthen our local police  forces.  
1966-56	1966	Our people have a right to feel secure in their homes and on their  streets--and that right just must be secured.  
1966-57	1966	Nor can we fail to arrest the destruction of life and property on our  highways.  
1966-58	1966	I will propose a Highway Safety Act of 1966 to seek an end to this mounting  tragedy.  
1966-59	1966	We must also act to prevent the deception of the American  consumer--requiring all packages to state clearly and truthfully their  contents--all interest and credit charges to be fully revealed--and keeping  harmful drugs and cosmetics away from our stores.  
1966-60	1966	It is the genius of our Constitution that under its shelter of enduring  institutions and rooted principles there is ample room for the rich  fertility of American political invention. We must change to master  change.  
1966-61	1966	I propose to take steps to modernize and streamline the executive branch,  to modernize the relations between city and State and Nation.  
1966-62	1966	A new Department of Transportation is needed to bring together our  transportation activities. The present structure--35 Government agencies,  spending $5 billion yearly--makes it almost impossible to serve either the  growing demands of this great Nation or the needs of the industry, or the  right of the taxpayer to full efficiency and real frugality.  
1966-63	1966	I will propose in addition a program to construct and to flight-test a new  supersonic transport airplane that will fly three times the speed of  sound--in excess of 2,000 miles per hour.  
1966-64	1966	I propose to examine our Federal system--the relation between city, State,  Nation, and the citizens themselves. We need a commission of the most  distinguished scholars and men of public affairs to do this job. I will ask  them to move on to develop a creative federalism to best use the wonderful  diversity of our institutions and our people to solve the problems and to  fulfill the dreams of the American people.  
1966-65	1966	As the process of election becomes more complex and more costly, we must  make it possible for those without personal wealth to enter public life  without being obligated to a few large contributors.  
1966-66	1966	Therefore, I will submit legislation to revise the present unrealistic  restriction on contributions--to prohibit the endless proliferation of  committees, bringing local and State committees under the act--to attach  strong teeth and severe penalties to the requirement of full disclosure of  contributions--and to broaden the participation of the people, through added  tax incentives, to stimulate small contributions to the party and to the  candidate of their choice.  
1966-67	1966	To strengthen the work of Congress I strongly urge an amendment to provide  a 4-year term for Members of the House of Representatives--which should not  begin before 1972.  
1966-68	1966	The present 2-year term requires most Members of Congress to divert  enormous energies to an almost constant process of campaigning--depriving  this Nation of the fullest measure of both their skill and their wisdom.  Today, too, the work of government is far more complex than in our early  years, requiring more time to learn and more time to master the technical  tasks of legislating. And a longer term will serve to attract more men of  the highest quality to political life. The Nation, the principle of  democracy, and, I think, each congressional district, will all be better  served by a 4-year term for Members of the House. And I urge your swift  action. IV.  
1966-69	1966	Tonight the cup of peril is full in Vietnam. That conflict is not an  isolated episode, but another great event in the policy that we have  followed with strong consistency since World War II.  
1966-70	1966	The touchstone of that policy is the interest of the United States--the  welfare and the freedom of the people of the United States. But nations  sink when they see that interest only through a narrow glass.  
1966-71	1966	In a world that has grown small and dangerous, pursuit of narrow aims could  bring decay and even disaster.  
1966-72	1966	An America that is mighty beyond description--yet living in a hostile or  despairing world--would be neither safe nor free to build a civilization to  liberate the spirit of man.  
1966-73	1966	In this pursuit we helped rebuild Western Europe. We gave our aid to Greece  and Turkey, and we defended the freedom of Berlin.  
1966-74	1966	In this pursuit we have helped new nations toward independence. We have  extended the helping hand of the Peace Corps and carried forward the  largest program of economic assistance in the world.  
1966-75	1966	And in this pursuit we work to build a hemisphere of democracy and of  social justice.  
1966-76	1966	In this pursuit we have defended against Communist aggression--in Korea  under President Truman--in the Formosa Straits under President  Eisenhower--in Cuba under President Kennedy--and again in Vietnam.  
1966-77	1966	Tonight Vietnam must hold the center of our attention, but across the world  problems and opportunities crowd in on the American Nation. I will discuss  them fully in the months to come, and I will follow the five continuing  lines of policy that America has followed under its last four Presidents.  
1966-78	1966	While special Vietnam expenditures for the next fiscal year are estimated  to increase by $5.8 billion, I can tell you that all the other expenditures  put together in the entire Federal budget will rise this coming year by  only $.6 billion. This is true because of the stringent cost-conscious  economy program inaugurated in the Defense Department, and followed by the  other departments of Government.  
1966-79	1966	We will vigorously pursue existing proposals--and seek new ones--to control  arms and to stop the spread of nuclear weapons.  
1966-80	1966	By strengthening the common defense, by stimulating world commerce, by  meeting new hopes, these associations serve the cause of a flourishing  world.  
1966-81	1966	We will take new steps this year to help strengthen the Alliance for  Progress, the unity of Europe, the community of the Atlantic, the regional  organizations of developing continents, and that supreme association--the  United Nations.  
1966-82	1966	We will work to strengthen economic cooperation, to reduce barriers to  trade, and to improve international finance.  
1966-83	1966	From the Marshall plan to this very moment tonight, that policy has rested  on the claims of compassion, and the certain knowledge that only a people  advancing in expectation will build secure and peaceful lands.  
1966-84	1966	This year I propose major new directions in our program of foreign  assistance to help those countries who will help themselves.  
1966-85	1966	We will conduct a worldwide attack on the problems of hunger and disease  and ignorance.  
1966-86	1966	We will place the matchless skill and the resources of our own great  America, in farming and in fertilizers, at the service of those countries  committed to develop a modern agriculture.  
1966-87	1966	We will aid those who educate the young in other lands, and we will give  children in other continents the same head start that we are trying to give  our own children. To advance these ends I will propose the International  Education Act of 1966.  
1966-88	1966	I will also propose the International Health Act of 1966 to strike at  disease by a new effort to bring modern skills and knowledge to the  uncared-for, those suffering in the world, and by trying to wipe out  smallpox and malaria and control yellow fever over most of the world during  this next decade; to help countries trying to control population growth, by  increasing our research--and we will earmark funds to help their efforts.  
1966-89	1966	In the next year, from our foreign aid sources, we propose to dedicate $1  billion to these efforts, and we call on all who have the means to join us  in this work in the world.  
1966-90	1966	For a peaceful world order will be possible only when each country walks  the way that it has chosen to walk for itself.  
1966-91	1966	We follow this principle by encouraging the end of colonial rule.  
1966-92	1966	We follow this principle, abroad as well as at home, by continued hostility  to the rule of the many by the few--or the oppression of one race by  another.  
1966-93	1966	We follow this principle by building bridges to Eastern Europe. And I will  ask the Congress for authority to remove the special tariff restrictions  which are a barrier to increasing trade between the East and the West.  
1966-94	1966	The insistent urge toward national independence is the strongest force of  today's world in which we live.  
1966-95	1966	In Africa and Asia and Latin America it is shattering the designs of those  who would subdue others to their ideas or their will.  
1966-96	1966	It is eroding the unity of what was once a Stalinist empire.  
1966-97	1966	In recent months a number of nations have east out those who would subject  them to the ambitions of mainland China.  
1966-98	1966	History is on the side of freedom and is on the side of societies shaped  from the genius of each people. History does not favor a single system or  belief--unless force is used to make it so.  
1966-99	1966	That is why it has been necessary for us to defend this basic principle of  our policy, to defend it in Berlin, in Korea, in Cuba--and tonight in  Vietnam.  
1966-100	1966	For tonight, as so many nights before, young Americans struggle and young  Americans die in a distant land.  
1966-101	1966	Tonight, as so many nights before, the American Nation is asked to  sacrifice the blood of its children and the fruits of its labor for the  love of its freedom.  
1966-102	1966	How many times--in my lifetime and in yours--have the American people  gathered, as they do now, to hear their President tell them of conflict and  tell them of danger?  
1966-103	1966	Each time they have answered. They have answered with all the effort that  the security and the freedom of this Nation required.  
1966-104	1966	And they do again tonight in Vietnam. Not too many years ago Vietnam was a  peaceful, if troubled, land. In the North was an independent Communist  government. In the South a people struggled to build a nation, with the  friendly help of the United States.  
1966-105	1966	There were some in South Vietnam who wished to force Communist rule on  their own people. But their progress was slight. Their hope of success was  dim. Then, little more than 6 years ago, North Vietnam decided on conquest.  And from that day to this, soldiers and supplies have moved from North to  South in a swelling stream that is swallowing the remnants of revolution in  aggression.  
1966-106	1966	As the assault mounted, our choice gradually became clear. We could leave,  abandoning South Vietnam to its attackers and to certain conquest, or we  could stay and fight beside the people of South Vietnam. We stayed.  
1966-107	1966	And we will stay until aggression has stopped.  
1966-108	1966	We will stay because a just nation cannot leave to the cruelties of its  enemies a people who have staked their lives and independence on America's  solemn pledge--a pledge which has grown through the commitments of three  American Presidents.  
1966-109	1966	We will stay because in Asia and around the world are countries whose  independence rests, in large measure, on confidence in America's word and  in America's protection. To yield to force in Vietnam would weaken that  confidence, would undermine the independence of many lands, and would whet  the appetite of aggression. We would have to fight in one land, and then we  would have to fight in another--or abandon much of Asia to the domination  of Communists.  
1966-110	1966	And we do not intend to abandon Asia to conquest.  
1966-111	1966	Last year the nature of the war in Vietnam changed again. Swiftly  increasing numbers of armed men from the North crossed the borders to join  forces that were already in the South. Attack and terror increased, spurred  and encouraged by the belief that the United States lacked the will to  continue and that their victory was near.  
1966-112	1966	Despite our desire to limit conflict, it was necessary to act: to hold back  the mounting aggression, to give courage to the people of the South, and to  make our firmness clear to the North. Thus. we began limited air action  against military targets in North Vietnam. We increased our fighting force  to its present strength tonight of 190,000 men.  
1966-113	1966	These moves have not ended the aggression but they have prevented its  success. The aims of the enemy have been put out of reach by the skill and  the bravery of Americans and their allies--and by the enduring courage of  the South Vietnamese who, I can tell you, have lost eight men last year for  every one of ours.  
1966-114	1966	The enemy is no longer close to victory. Time is no longer on his side.  There is no cause to doubt the American commitment.  
1966-115	1966	Our decision to stand firm has been matched by our desire for peace.  
1966-116	1966	In 1965 alone we had 300 private talks for peace in Vietnam, with friends  and adversaries throughout the world.  
1966-117	1966	Since Christmas your Government has labored again, with imagination and  endurance, to remove any barrier to peaceful settlement. For 20 days now we  and our Vietnamese allies have dropped no bombs in North Vietnam.  
1966-118	1966	Able and experienced spokesmen have visited, in behalf of America, more  than 40 countries. We have talked to more than a hundred governments, all  113 that we have relations with, and some that we don't. We have talked to  the United Nations and we have called upon all of its members to make any  contribution that they can toward helping obtain peace.  
1966-119	1966	In public statements and in private communications, to adversaries and to  friends, in Rome and Warsaw, in Paris and Tokyo, in Africa and throughout  this hemisphere, America has made her position abundantly clear.  
1966-120	1966	We seek neither territory nor bases, economic domination or military  alliance in Vietnam. We fight for the principle of self-determination--that  the people of South Vietnam should be able to choose their own course,  choose it in free elections without violence, without terror, and without  fear.  
1966-121	1966	The people of all Vietnam should make a free decision on the great question  of reunification.  
1966-122	1966	This is all we want for South Vietnam. It is all the people of South  Vietnam want. And if there is a single nation on this earth that desires  less than this for its own people, then let its voice be heard.  
1966-123	1966	We have also made it clear--from Hanoi to New York--that there are no  arbitrary limits to our search for peace. We stand by the Geneva Agreements  of 1954 and 1962. We will meet at any conference table, we will discuss any  proposals--four points or fourteen or forty--and we will consider the views  of any group. We will work for a cease-fire now or once discussions have  begun. We will respond if others reduce their use of force, and we will  withdraw our soldiers once South Vietnam is securely guaranteed the right  to shape its own future.  
1966-124	1966	We have said all this, and we have asked--and hoped--and we have waited for  a response.  
1966-125	1966	So far we have received no response to prove either success or failure.  
1966-126	1966	We have carried our quest for peace to many nations and peoples because we  share this planet with others whose future, in large measure, is tied to  our own action, and whose counsel is necessary to our own hopes.  
1966-127	1966	We have found understanding and support. And we know they wait with us  tonight for some response that could lead to peace.  
1966-128	1966	I wish tonight that I could give you a blueprint for the course of this  conflict over the coming months, but we just cannot know what the future  may require. We may have to face long, hard combat or a long, hard  conference, or even both at once.  
1966-129	1966	Until peace comes, or if it does not come, our course is clear. We will act  as we must to help protect the independence of the valiant people of South  Vietnam. We will strive to limit the conflict, for we wish neither  increased destruction nor do we want to invite increased danger.  
1966-130	1966	But we will give our fighting men what they must have: every gun, and every  dollar, and every decision--whatever the cost or whatever the challenge.  
1966-131	1966	And we will continue to help the people of South Vietnam care for those  that are ravaged by battle, create progress in the villages, and carry  forward the healing hopes of peace as best they can amidst the uncertain  terrors of war.  
1966-132	1966	And let me be absolutely clear: The days may become months, and the months  may become years, but we will stay as long as aggression commands us to  battle.  
1966-133	1966	There may be some who do not want peace, whose ambitions stretch so far  that war in Vietnam is but a welcome and convenient episode in an immense  design to subdue history to their will. But for others it must now be  clear--the choice is not between peace and victory, it lies between peace  and the ravages of a conflict from which they can only lose.  
1966-134	1966	The people of Vietnam, North and South, seek the same things: the shared  needs of man, the needs for food and shelter and education--the chance to  build and work and till the soil, free from the arbitrary horrors of  battle--the desire to walk in the dignity of those who master their own  destiny. For many painful years, in war and revolution and infrequent  peace, they have struggled to fulfill those needs.  
1966-135	1966	It is a crime against mankind that so much courage, and so much will, and  so many dreams, must be flung on the fires of war and death.  
1966-136	1966	To all of those caught up in this conflict we therefore say again tonight:  Let us choose peace, and with it the wondrous works of peace, and beyond  that, the time when hope reaches toward consummation, and life is the  servant of life.  
1966-137	1966	In this work, we plan to discharge our duty to the people whom we serve.  V.  
1966-138	1966	This is the State of the Union.  
1966-139	1966	But over it all--wealth, and promise, and expectation--lies our troubling  awareness of American men at war tonight.  
1966-140	1966	How many men who listen to me tonight have served their Nation in other  wars? How very many are not here to listen?  
1966-141	1966	The war in Vietnam is not like these other wars. Yet, finally, war is  always the same. It is young men dying in the fullness of their promise. It  is trying to kill a man that you do not even know well enough to hate.  
1966-142	1966	Therefore, to know war is to know that there is still madness in this  world.  
1966-143	1966	Many of you share the burden of this knowledge tonight with me. But there  is a difference. For finally I must be the one to order our guns to fire,  against all the most inward pulls of my desire. For we have children to  teach, and we have sick to be cured, and we have men to be freed. There are  poor to be lifted up, and there are cities to be built, and there is a  world to be helped.  
1966-144	1966	Yet we do what we must.  
1966-145	1966	I am hopeful, and I will try as best I can, with everything I have got, to  end this battle and to return our sons to their desires.  
1966-146	1966	Yet as long as others will challenge America's security and test the  clearness of our beliefs with fire and steel, then we must stand or see the  promise of two centuries tremble. I believe tonight that you do not want me  to try that risk. And from that belief your President summons his strength  for the trials that lie ahead in the days to come.  
1966-147	1966	The work must be our work now. Scarred by the weaknesses of man, with  whatever guidance God may offer us, we must nevertheless and alone with our  mortality, strive to ennoble the life of man on earth.  
1966-148	1966	Thank you, and goodnight.  
1967-1	1967	Mr. Speaker, Mr. Vice President, distinguished Members of the Congress:  
1967-2	1967	I share with all of you the grief that you feel at the death today of one  of the most beloved, respected, and effective Members of this body, the  distinguished Representative from Rhode Island, Mr. Fogarty.  
1967-3	1967	I have come here tonight to report to you that this is a time of testing  for our Nation.  
1967-4	1967	At home, the question is whether we will continue working for better  opportunities for all Americans, when most Americans are already living  better than any people in history.  
1967-5	1967	Abroad, the question is whether we have the staying power to fight a very  costly war, when the objective is limited and the danger to us is seemingly  remote.  
1967-6	1967	So our test is not whether we shrink from our country's cause when the  dangers to us are obvious and dose at hand, but, rather, whether we carry  on when they seem obscure and distant--and some think that it is safe to  lay down our burdens.  
1967-7	1967	I have come tonight to ask this Congress and this Nation to resolve that  issue: to meet our commitments at home and abroad--to continue to build a  better America--and to reaffirm this Nation's allegiance to freedom.  
1967-8	1967	As President Abraham Lincoln said, "We must ask where we are, and whither  we are tending." I.  
1967-9	1967	The last 3 years bear witness to our determination to make this a better  country.  
1967-10	1967	We have struck down legal barriers to equality.  
1967-11	1967	We have improved the education of 7 million deprived children and this year  alone we have enabled almost 1 million students to go to college.  
1967-12	1967	We have brought medical care to older people who were unable to afford it.  Three and one-half million Americans have already received treatment under  Medicare since July.  
1967-13	1967	We have built a strong economy that has put almost 3 million more Americans  on the payrolls in the last year alone.  
1967-14	1967	We have included more than 9 million new workers under a higher minimum  wage.  
1967-15	1967	We have launched new training programs to provide job skills for almost 1  million Americans.  
1967-16	1967	We have helped more than a thousand local communities to attack poverty in  the neighborhoods of the poor. We have set out to rebuild our cities on a  scale that has never been attempted before. We have begun to rescue our  waters from the menace of pollution and to restore the beauty of our land  and our countryside, our cities and our towns.  
1967-17	1967	We have given 1 million young Americans a chance to earn through the  Neighborhood Youth Corps--or through Head Start, a chance to learn.  
1967-18	1967	So together we have tried to meet the needs of our people. And, we have  succeeded in creating a better life for the many as well as the few. Now we  must answer whether our gains shall be the foundations of further progress,  or whether they shall be only monuments to what might have been--abandoned  now by a people who lacked the will to see their great work through.  
1967-19	1967	I believe that our people do not want to quit--though the task is great,  the work hard, often frustrating, and success is a matter not of days or  months, but of years--and sometimes it may be even decades. II.  
1967-20	1967	I have come here tonight to discuss with you five ways of carrying forward  the progress of these last 3 years. These five ways concern programs,  partnerships, priorities, prosperity, and peace.  
1967-21	1967	First, programs. We must see to it, I think, that these new programs that  we have passed work effectively and are administered in the best possible  way.  
1967-22	1967	Three years ago we set out to create these new instruments of social  progress. This required trial and error--and it has produced both. But as  we learn, through success and failure, we are changing our strategy and we  are trying to improve our tactics. In the long run, these starts--some  rewarding, others inadequate and disappointing--are crucial to SUCCESS.  
1967-23	1967	One example is the struggle to make life better for the less fortunate  among us.  
1967-24	1967	On a similar occasion, at this rostrum in 1949, I heard a great American  President, Harry S. Truman, declare this: "The American people have decided  that poverty is just as wasteful and just as unnecessary as preventable  disease."  
1967-25	1967	Many listened to President Truman that day here in this Chamber, but few  understood what was required and did anything about it. The executive  branch and the Congress waited 15 long years before ever taking any action  on that challenge, as it did on many other challenges that great President  presented. And when, 3 years ago, you here in the Congress joined with me  in a declaration of war on poverty, then I warned, "It will not be a short  or easy struggle--no single weapon... will suffice--but we shall not rest  until that war is won."  
1967-26	1967	And I have come here to renew that pledge tonight.  
1967-27	1967	I recommend that we intensify our efforts to give the poor a chance to  enjoy and to join in this Nation's progress.  
1967-28	1967	I shall propose certain administrative changes suggested by the  Congress--as well as some that we have learned from our own trial and  error.  
1967-29	1967	I shall urge special methods and special funds to reach the hundreds of  thousands of Americans that are now trapped in the ghettos of our big  cities and, through Head Start, to try to reach out to our very young,  little children. The chance to learn is their brightest hope and must  command our full determination. For learning brings skills; and skills  bring jobs; and jobs bring responsibility and dignity, as well as taxes.  
1967-30	1967	This war--like the war in Vietnam--is not a simple one. There is no single  battle-line which you can plot each day on a chart. The enemy is not easy to  perceive, or to isolate, or to destroy. There are mistakes and there are  setbacks. But we are moving, and our direction is forward.  
1967-31	1967	This is true with other programs that are making and breaking new ground.  Some do not yet have the capacity to absorb well or wisely all the money  that could be put into them. Administrative skills and trained manpower are  just as vital to their success as dollars. And I believe those skills will  come. But it will take time and patience and hard work. Success cannot be  forced at a single stroke. So we must continue to strengthen the  administration of every program if that success is to come--as we know it  must.  
1967-32	1967	We have done much in the space of 2 short years, working together.  
1967-33	1967	I have recommended, and you, the Congress, have approved, 10 different  reorganization plans, combining and consolidating many bureaus of this  Government, and creating two entirely new Cabinet departments.  
1967-34	1967	I have come tonight to propose that we establish a new department--a  Department of Business and Labor.  
1967-35	1967	By combining the Department of Commerce with the Department of Labor and  other related agencies, I think we can create a more economical, efficient,  and streamlined instrument that will better serve a growing nation.  
1967-36	1967	This is our goal throughout the entire Federal Government. Every program  will be thoroughly evaluated. Grant-in-aid programs will be improved and  simplified as desired by many of our local administrators and our  Governors.  
1967-37	1967	Where there have been mistakes, we will try very hard to correct them.  
1967-38	1967	Where there has been progress, we will try to build upon it.  
1967-39	1967	Our second objective is partnership--to create an effective partnership at  all levels of government. And I should treasure nothing more than to have  that partnership begin between the executive and the Congress.  
1967-40	1967	The 88th and the 89th Congresses passed more social and economic  legislation than any two single Congresses in American history. Most of you  who were Members of those Congresses voted to pass most of those measures.  But your efforts will come to nothing unless it reaches the people.  
1967-41	1967	Federal energy is essential. But it is not enough. Only a total working  partnership among Federal, State, and local governments can succeed. The  test of that partnership will be the concern of each public organization,  each private institution, and each responsible citizen.  
1967-42	1967	Each State, county, and city needs to examine its capacity for government  in today's world, as we are examining ours in the executive department, and  as I see you are examining yours. Some will need to reorganize and reshape  their methods of administration--as we are doing. Others will need to revise  their constitutions and their laws to bring them up to date--as we are  doing. Above all, I think we must work together and find ways in which the  multitudes of small jurisdictions can be brought together more  efficiently.  
1967-43	1967	During the past 3 years we have returned to State and local governments  about $40 billion in grants-in-aid. This year alone, 70 percent of our  Federal expenditures for domestic programs will be distributed through the  State and local governments. With Federal assistance, State and local  governments by 1970 will be spending close to $110 billion annually. These  enormous sums must be used wisely, honestly, and effectively. We intend to  work closely with the States and the localities to do exactly that.  
1967-44	1967	Our third objective is priorities, to move ahead on the priorities that we  have established within the resources that are available.  
1967-45	1967	I wish, of course, that we could do all that should be done--and that we  could do it now. But the Nation has many commitments and responsibilities  which make heavy demands upon our total resources. No administration would  more eagerly utilize for these programs all the resources they require than  the administration that started them.  
1967-46	1967	So let us resolve, now, to do all that we can, with what we have--knowing  that it is far, far more than we have ever done before, and far, far less  than our problems will ultimately require.  
1967-47	1967	Let us create new opportunities for our children and our young Americans  who need special help.  
1967-48	1967	We should strengthen the Head Start program, begin it for children 3 years  old, and maintain its educational momentum by following through in the  early years.  
1967-49	1967	We should try new methods of child development and care from the earliest  years, before it is too late to correct.  
1967-50	1967	And I will propose these measures to the 90th Congress.  
1967-51	1967	Let us insure that older Americans, and neglected Americans, share in their  Nation's progress.  
1967-52	1967	We should raise social security payments by an overall average of 20  percent. That will add $4 billion 100 million to social security payments  in the first year. I will recommend that each of the 23 million Americans  now receiving payments get an increase of at least 15 percent.  
1967-53	1967	I will ask that you raise the minimum payments by 59 percent--from $44 to  $70 a month, and to guarantee a minimum benefit of $100 a month for those  with a total of 25 years of coverage. We must raise the limits that retired  workers can earn without losing social security income.  
1967-54	1967	We must eliminate by law unjust discrimination in employment because of  age.  
1967-55	1967	We should embark upon a major effort to provide self-help assistance to the  forgotten in our midst--the American Indians and the migratory farm  workers. And we should reach with the hand of understanding to help those  who live in rural poverty.  
1967-56	1967	And I will propose these measures to the 90th Congress.  
1967-57	1967	So let us keep on improving the quality of life and enlarging the meaning  of justice for all of our fellow Americans.  
1967-58	1967	We should transform our decaying slums into places of decency through the  landmark Model Cities program. I intend to seek for this effort, this year,  the full amount that you in Congress authorized last year.  
1967-59	1967	We should call upon the genius of private industry and the most advanced  technology to help rebuild our great cities.  
1967-60	1967	We should vastly expand the fight for dean air with a total attack on  pollution at its sources, and--because air, like water, does not respect  manmade boundaries--we should set up "regional airsheds" throughout this  great land.  
1967-61	1967	We should continue to carry to every corner of the Nation our campaign for  a beautiful America--to dean up our towns, to make them more beautiful, our  cities, our countryside, by creating more parks, and more seashores, and  more open spaces for our children to play in, and for the generations that  come after us to enjoy.  
1967-62	1967	We should continue to seek equality and justice for each citizen--before a  jury, in seeking a job, in exercising his civil rights. We should find a  solution to fair housing, so that every American, regardless of color, has  a decent home of his choice.  
1967-63	1967	We should modernize our Selective Service System. The National Commission  on Selective Service will shortly submit its report. I will send you new  recommendations to meet our military manpower needs. But let us resolve  that this is to be the Congress that made our draft laws as fair and as  effective as possible.  
1967-64	1967	We should protect what Justice Brandeis called the "right most valued by  civilized men"--the right to privacy. We should outlaw all  wiretapping--public and private--wherever and whenever it occurs, except  when the security of this Nation itself is at stake--and only then with the  strictest governmental safeguards. And we should exercise the full reach of  our constitutional powers to outlaw electronic "bugging" and "snooping."  
1967-65	1967	I hope this Congress will try to help me do more for the consumer. We  should demand that the cost of credit be clearly and honestly expressed  where average citizens can understand it. We should immediately take steps  to prevent massive power failures, to safeguard the home against hazardous  household products, and to assure safety in the pipelines that carry  natural gas across our Nation.  
1967-66	1967	We should extend Medicare benefits that are now denied to 1,300,000  permanently and totally disabled Americans under 65 years of age.  
1967-67	1967	We should improve the process of democracy by passing our election reform  and financing proposals, by tightening our laws regulating lobbying, and by  restoring a reasonable franchise to Americans who move their residences.  
1967-68	1967	We should develop educational television into a vital public resource to  enrich our homes, educate our families, and to provide assistance in our  classrooms. We should insist that the public interest be fully served  through the public's airwaves.  
1967-69	1967	And I will propose these measures to the 90th Congress.  
1967-70	1967	Now we come to a question that weighs very heavily on all our minds--on  yours and mine. This Nation must make an all-out effort to combat crime.  
1967-71	1967	The 89th Congress gave us a new start in the attack on crime by passing the  Law Enforcement Assistance Act that I recommended. We appointed the  National Crime Commission to study crime in America and to recommend the  best ways to carry that attack forward.  
1967-72	1967	And while we do not have all the answers, on the basis of its preliminary  recommendations we are ready to move.  
1967-73	1967	This is not a war that Washington alone can win. The idea of a national  police force is repugnant to the American people. Crime must be rooted out  in local communities by local authorities. Our policemen must be better  trained, must be better paid, and must be better supported by the local  citizens that they try to serve and to protect.  
1967-74	1967	The National Government can and expects to help.  
1967-75	1967	And so I will recommend to the 90th Congress the Safe Streets and Crime  Control Act of 1967. It will enable us to assist those States and cities  that try to make their streets and homes safer, their police forces better,  their corrections systems more effective, and their courts more efficient.  
1967-76	1967	When the Congress approves, the Federal Government will be able to provide  a substantial percentage of the cost:  
1967-77	1967	--90 percent of the cost of developing the State and local plans, master  plans, to combat crime in their area;  
1967-78	1967	--60 percent of the cost of training new tactical units, developing instant  communications and special alarm systems, and introducing the latest  equipment and techniques so that they can become weapons in the war on  crime;  
1967-79	1967	--50 percent of the cost of building crime laboratories and police  academy-type centers so that our citizens can be protected by the best  trained and served by the best equipped police to be found anywhere. We  will also recommend new methods to prevent juvenile delinquents from  becoming adult delinquents. We will seek new partnerships with States and  cities in order to deal with this hideous narcotics problem. And we will  recommend strict controls on the sale of firearms.  
1967-80	1967	At the heart of this attack on crime must be the conviction that a free  America--as Abraham Lincoln once said--must "let reverence for the  laws . . . become the political religion of the Nation."  
1967-81	1967	Our country's laws must be respected. Order must be maintained. And I will  support--with all the constitutional powers the President possesses--our  Nation's law enforcement officials in their attempt to control the crime  and the violence that tear the fabric of our communities.  
1967-82	1967	Many of these priority proposals will be built on foundations that have  already been laid. Some will necessarily be small at first, but "every  beginning is a consequence." If we postpone this urgent work now, it will  simply have to be done later, and later we will pay a much higher price.  
1967-83	1967	Our fourth objective is prosperity, to keep our economy moving ahead,  moving ahead steadily and safely.  
1967-84	1967	We have now enjoyed 6 years of unprecedented and rewarding prosperity. Last  year, in 1966:  
1967-85	1967	--Wages were the highest in history--and the unemployment rate, announced  yesterday, reached the lowest point in 13 years;  
1967-86	1967	--Total after-tax income of American families rose nearly 5 percent;  
1967-87	1967	--Corporate profits after taxes rose a little more than 5 percent;  
1967-88	1967	--Our gross national product advanced 5.5 percent, to about $740 billion;  
1967-89	1967	--Income per farm went up 6 percent.  
1967-90	1967	Now we have been greatly concerned because consumer prices rose 4.5 percent  over the 18 months since we decided to send troops to Vietnam. This was  more than we had expected--and the Government tried to do everything that  we knew how to do to hold it down. Yet we were not as successful as we  wished to be. In the 18 months after we entered World War II, prices rose  not 4.5 percent, but 13.5 percent. In the first 18 months after Korea,  after the conflict broke out there, prices rose not 4.5 percent, but 11  percent. During those two periods we had OPA price control that the  Congress gave us and War Labor Board wage controls.  
1967-91	1967	Since Vietnam we have not asked for those controls and we have tried to  avoid imposing them. We believe that we have done better, but we make no  pretense of having been successful or doing as well as we wished.  
1967-92	1967	Our greatest disappointment in the economy during 1966 was the excessive  rise in interest rates and the tightening of credit. They imposed very  severe and very unfair burdens on our home buyers and on our home builders,  and all those associated with the home industry.  
1967-93	1967	Last January, and again last September, I recommended fiscal and moderate  tax measures to try to restrain the unbalanced pace of economic expansion.  Legislatively and administratively we took several billions out of the  economy. With these measures, in both instances, the Congress approved most  of the recommendations rather promptly.  
1967-94	1967	As 1966 ended, price stability was seemingly being restored. Wholesale  prices are lower tonight than they were in August. So are retail food  prices. Monetary conditions are also easing. Most interest rates have  retreated from their earlier peaks. More money now seems to be available.  
1967-95	1967	Given the cooperation of the Federal Reserve System, which I so earnestly  seek, I am confident that this movement can continue. I pledge the American  people that I will do everything in a President's power to lower interest  rates and to ease money in this country. The Federal Home Loan Bank Board  tomorrow morning will announce that it will make immediately available to  savings and loan associations an additional $1 billion, and will lower from  6 percent to 5 3/4 percent the interest rate charged on those loans.  
1967-96	1967	We shall continue on a sensible course of fiscal and budgetary policy that  we believe will keep our economy growing without new inflationary spirals;  that will finance responsibly the needs of our men in Vietnam and the  progress of our people at home; that will support a significant improvement  in our export surplus, and will press forward toward easier credit and  toward lower interest rates.  
1967-97	1967	I recommend to the Congress a surcharge of 6 percent on both corporate and  individual income taxes--to last for 2 years or for so long as the unusual  expenditures associated with our efforts in Vietnam continue. I will  promptly recommend an earlier termination date if a reduction in these  expenditures permits it. This surcharge will raise revenues by some $4.5  billion in the first year. For example, a person whose tax payment, the tax  he owes, is $1,000, will pay, under this proposal, an extra $60 over the  12-month period, or $5 a month. The overwhelming majority of Americans who  pay taxes today are below that figure and they will pay substantially less  than $5 a month. Married couples with two children, with incomes up to  $5,000 per year, will be exempt from this tax--as will single people with  an income of up to $1,900 a year.  
1967-98	1967	Now if Americans today still paid the income and excise tax rates in effect  when I came into the Presidency, in the year 1964, their annual taxes would  have been over $20 billion more than at present tax rates. So this proposal  is that while we have this problem and this emergency in Vietnam, while we  are trying to meet the needs of our people at home, your Government asks  for slightly more than one-fourth of that tax cut each year in order to try  to hold our budget deficit in fiscal 1968 within prudent limits and to give  our country and to give our fighting men the help they need in this hour of  trial.  
1967-99	1967	For fiscal 1967, we estimate the budget expenditures to be $126.7 billion  and revenues of $117 billion. That will leave us a deficit this year of  $9.7 billion.  
1967-100	1967	For fiscal 1968, we estimate budget expenditures of $135 billion. And with  the tax measures recommended, and a continuing strong economy, we estimate  revenues will be $126.9 billion. The deficit then will be $8.1 billion.  
1967-101	1967	I will very soon forward all of my recommendations to the Congress. Yours  is the responsibility to discuss and to debate them--to approve or modify or  reject them.  
1967-102	1967	I welcome your views, as I have welcomed working with you for 30 years as a  colleague and as Vice President and President.  
1967-103	1967	I should like to say to the Members of the opposition--whose numbers, if I  am not mistaken, seem to have increased somewhat--that the genius of the  American political system has always been best expressed through creative  debate that offers choices and reasonable alternatives. Throughout our  history, great Republicans and Democrats have seemed to understand this. So  let there be light and reason in our relations. That is the way to a  responsible session and a responsive government.  
1967-104	1967	Let us be remembered as a President and a Congress who tried to improve the  quality of life for every American--not just the rich, not just the poor,  but every man, woman, and child in this great Nation of ours.  
1967-105	1967	We all go to school--to good schools or bad schools. We all take air into  our lungs--clean air or polluted air. We all drink water--pure water or  polluted water. We all face sickness someday, and some more often than we  wish, and old age as well. We all have a stake in this Great Society--in  its economic growth, in reduction of civil strife--a great stake in good  government.  
1967-106	1967	We just must not arrest the pace of progress we have established in this  country in these years. Our children's children will pay the price if we  are not wise enough, and courageous enough, and determined enough to stand  up and meet the Nation's needs as well as we can in the time allotted us.  III.  
1967-107	1967	Abroad, as at home, there is also risk in change. But abroad, as at home,  there is a greater risk in standing still. No part of our foreign policy is  so sacred that it ever remains beyond review. We shall be flexible where  conditions in the world change--and where man's efforts can change them for  the better.  
1967-108	1967	We are in the midst of a great transition--a transition from narrow  nationalism to international partnership; from the harsh spirit of the cold  war to the hopeful spirit of common humanity on a troubled and a threatened  planet.  
1967-109	1967	In Latin America, the American chiefs of state will be meeting very shortly  to give our hemispheric policies new direction.  
1967-110	1967	We have come a long way in this hemisphere since the inter-American effort  in economic and social development was launched by the conference at Bogota  in 1960 under the leadership of President Eisenhower. The Alliance for  Progress moved dramatically forward under President Kennedy. There is new  confidence that the voice of the people is being heard; that the dignity of  the individual is stronger than ever in this hemisphere, and we are facing  up to and meeting many of the hemispheric problems together. In this  hemisphere that reform under democracy can be made to happen--because it  has happened. So together, I think, we must now move to strike down the  barriers to full cooperation among the American nations, and to free the  energies and the resources of two great continents on behalf of all of our  citizens.  
1967-111	1967	Africa stands at an earlier stage of development than Latin America. It has  yet to develop the transportation, communications, agriculture, and, above  all, the trained men and women without which growth is impossible. There,  too, the job will best be done if the nations and peoples of Africa  cooperate on a regional basis. More and more our programs for Africa are  going to be directed toward self-help.  
1967-112	1967	The future of Africa is shadowed by unsolved racial conflicts. Our policy  will continue to reflect our basic commitments as a people to support those  who are prepared to work towards cooperation and harmony between races, and  to help those who demand change but reject the fool's gold of violence.  
1967-113	1967	In the Middle East the spirit of good will toward all, unfortunately, has  not yet taken hold. An already tortured peace seems to be constantly  threatened. We shall try to use our influence to increase the possibilities  of improved relations among the nations of that region. We are working hard  at that task.  
1967-114	1967	In the great subcontinent of South Asia live more than a sixth of the  earth's population. Over the years we--and others--have invested very  heavily in capital and food for the economic development of India and  Pakistan.  
1967-115	1967	We are not prepared to see our assistance wasted, however, in conflict. It  must strengthen their capacity to help themselves. It must help these two  nations--both our friends--to overcome poverty, to emerge as self-reliant  leaders, and find terms for reconciliation and cooperation.  
1967-116	1967	In Western Europe we shall maintain in NATO an integrated common defense.  But we also look forward to the time when greater security can be achieved  through measures of arms control and disarmament, and through other forms  of practical agreement.  
1967-117	1967	We are shaping a new future of enlarged partnership in nuclear affairs, in  economic and technical cooperation, in trade negotiations, in political  consultation, and in working together with the governments and peoples of  Eastern Europe and the Soviet Union.  
1967-118	1967	The emerging spirit of confidence is precisely what we hoped to achieve  when we went to work a generation ago to put our shoulder to the wheel and  try to help rebuild Europe. We faced new challenges and opportunities then  and there--and we faced also some dangers. But I believe that the peoples  on both sides of the Atlantic, as well as both sides of this Chamber,  wanted to face them together.  
1967-119	1967	Our relations with the Soviet Union and Eastern Europe are also in  transition. We have avoided both the acts and the rhetoric of the cold war.  When we have differed with the Soviet Union, or other nations, for that  matter, I have tried to differ quietly and with courtesy, and without  venom.  
1967-120	1967	Our objective is not to continue the cold war, but to end it.  
1967-121	1967	We have reached an agreement at the United Nations on the peaceful uses of  outer space.  
1967-122	1967	We have agreed to open direct air flights with the Soviet Union.  
1967-123	1967	We have removed more than 400 nonstrategic items from export control.  
1967-124	1967	We are determined that the Export-Import Bank can allow commercial credits  to Poland, Hungary, Bulgaria, and Czechoslovakia, as well as to Romania and  Yugoslavia.  
1967-125	1967	We have entered into a cultural agreement with the Soviet Union for another  2 years.  
1967-126	1967	We have agreed with Bulgaria and Hungary to upgrade our legations to  embassies.  
1967-127	1967	We have started discussions with international agencies on ways of  increasing contacts with Eastern European countries.  
1967-128	1967	This administration has taken these steps even as duty compelled us to  fulfill and execute alliances and treaty obligations throughout the world  that were entered into before I became President.  
1967-129	1967	So tonight I now ask and urge this Congress to help our foreign and our  commercial trade policies by passing an East-West trade bill and by  approving our consular convention with the Soviet Union.  
1967-130	1967	The Soviet Union has in the past year increased its long-range missile  capabilities. It has begun to place near Moscow a limited antimissile  defense. My first responsibility to our people is to assure that no nation  can ever find it rational to launch a nuclear attack or to use its nuclear  power as a credible threat against us or against our allies.  
1967-131	1967	I would emphasize that that is why an important link between Russia and the  United States is in our common interest, in arms control and in  disarmament. We have the solemn duty to slow down the arms race between us,  if that is at all possible, in both conventional and nuclear weapons and  defenses. I thought we were making some progress in that direction the  first few months I was in office. I realize that any additional race would  impose on our peoples, and on all mankind, for that matter, an additional  waste of resources with no gain in security to either side.  
1967-132	1967	I expect in the days ahead to closely consult and seek the advice of the  Congress about the possibilities of international agreements bearing  directly upon this problem.  
1967-133	1967	Next to the pursuit of peace, the really greatest challenge to the human  family is the race between food supply and population increase. That race  tonight is being lost.  
1967-134	1967	The time for rhetoric has clearly passed. The time for concerted action is  here and we must get on with the job.  
1967-135	1967	We believe that three principles must prevail if our policy is to succeed:  
1967-136	1967	First, the developing nations must give highest priority to food  production, including the use of technology and the capital of private  enterprise.  
1967-137	1967	Second, nations with food deficits must put more of their resources into  voluntary family planning programs.  
1967-138	1967	And third, the developed nations must all assist other nations to avoid  starvation in the short run and to move rapidly towards the ability to feed  themselves.  
1967-139	1967	Every member of the world community now bears a direct responsibility to  help bring our most basic human account into balance. IV.  
1967-140	1967	I come now finally to Southeast Asia--and to Vietnam in particular. Soon I  will submit to the Congress a detailed report on that situation. Tonight I  want to just review the essential points as briefly as I can.  
1967-141	1967	We are in Vietnam because the United States of America and our allies are  committed by the SEATO Treaty to "act to meet the common danger" of  aggression in Southeast Asia.  
1967-142	1967	We are in Vietnam because an international agreement signed by the United  States, North Vietnam, and others in 1962 is being systematically violated  by the Communists. That violation threatens the independence of all the  small nations in Southeast Asia, and threatens the peace of the entire  region and perhaps the world.  
1967-143	1967	We are there because the people of South Vietnam have as much right to  remain non-Communist--if that is what they choose--as North Vietnam has to  remain Communist.  
1967-144	1967	We are there because the Congress has pledged by solemn vote to take all  necessary measures to prevent further aggression.  
1967-145	1967	No better words could describe our present course than those once spoken by  the great Thomas Jefferson:  
1967-146	1967	"It is the melancholy law of human societies to be compelled sometimes to  choose a great evil in order to ward off a greater."  
1967-147	1967	We have chosen to fight a limited war in Vietnam in an attempt to prevent a  larger war--a war almost certain to follow, I believe, if the Communists  succeed in overrunning and taking over South Vietnam by aggression and by  force. I believe, and I am supported by some authority, that if they are  not checked now the world can expect to pay a greater price to check them  later.  
1967-148	1967	That is what our statesmen said when they debated this treaty, and that is  why it was ratified 82 to 1 by the Senate many years ago.  
1967-149	1967	You will remember that we stood in Western Europe 20 years ago. Is there  anyone in this Chamber tonight who doubts that the course of freedom was  not changed for the better because of the courage of that stand?  
1967-150	1967	Sixteen years ago we and others stopped another kind of aggression--this  time it was in Korea. Imagine how different Asia might be today if we had  failed to act when the Communist army of North Korea marched south. The  Asia of tomorrow will be far different because we have said in Vietnam, as  we said 16 years ago in Korea: "This far and no further."  
1967-151	1967	I think I reveal no secret when I tell you that we are dealing with a  stubborn adversary who is committed to the use of force and terror to  settle political questions.  
1967-152	1967	I wish I could report to you that the conflict is almost over. This I  cannot do. We face more cost, more loss, and more agony. For the end is not  yet. I cannot promise you that it will come this year--or come next year.  Our adversary still believes, I think, tonight, that he can go on fighting  longer than we can, and longer than we and our allies will be prepared to  stand up and resist.  
1967-153	1967	Our men in that area--there are nearly 500,000 now--have borne well "the  burden and the heat of the day." Their efforts have deprived the Communist  enemy of the victory that he sought and that he expected a year ago. We  have steadily frustrated his main forces. General Westmoreland reports that  the enemy can no longer succeed on the battlefield.  
1967-154	1967	So I must say to you that our pressure must be sustained--and will be  sustained--until he realizes that the war he started is costing him more  than he can ever gain.  
1967-155	1967	I know of no strategy more likely to attain that end than the strategy of  "accumulating slowly, but inexorably, every kind of material resource"--of  "laboriously teaching troops the very elements of their trade." That, and  patience--and I mean a great deal of patience.  
1967-156	1967	Our South Vietnamese allies are also being tested tonight. Because they  must provide real security to the people living in the countryside. And  this means reducing the terrorism and the armed attacks which kidnaped and  killed 26,900 civilians in the last 32 months, to levels where they can be  successfully controlled by the regular South Vietnamese security forces. It  means bringing to the villagers an effective civilian government that they  can respect, and that they can rely upon and that they can participate in,  and that they can have a personal stake in. We hope that government is now  beginning to emerge.  
1967-157	1967	While I cannot report the desired progress in the pacification effort, the  very distinguished and able Ambassador, Henry Cabot Lodge, reports that  South Vietnam is turning to this task with a new sense of urgency. We can  help, but only they can win this part of the war. Their task is to build  and protect a new life in each rural province.  
1967-158	1967	One result of our stand in Vietnam is already clear.  
1967-159	1967	It is this: The peoples of Asia now know that the door to independence is  not going to be slammed shut. They know that it is possible for them to  choose their own national destinies--without coercion.  
1967-160	1967	The performance of our men in Vietnam--backed by the American people--has  created a feeling of confidence and unity among the independent nations of  Asia and the Pacific. I saw it in their faces in the 19 days that I spent  in their homes and in their countries. Fear of external Communist conquest  in many Asian nations is already subsiding--and with this, the spirit of  hope is rising. For the first time in history, a common outlook and common  institutions are already emerging.  
1967-161	1967	This forward movement is rooted in the ambitions and the interests of Asian  nations themselves. It was precisely this movement that we hoped to  accelerate when I spoke at Johns Hopkins in Baltimore in April 1965, and I  pledged "a much more massive effort to improve the life of man" in that  part of the world, in the hope that we could take some of the funds that we  were spending on bullets and bombs and spend it on schools and production.  
1967-162	1967	Twenty months later our efforts have produced a new reality: The doors of  the billion dollar Asian Development Bank that I recommended to the  Congress, and you endorsed almost unanimously, I am proud to tell you are  already open. Asians are engaged tonight in regional efforts in a dozen new  directions. Their hopes are high. Their faith is strong. Their confidence  is deep.  
1967-163	1967	And even as the war continues, we shall play our part in carrying forward  this constructive historic development. As recommended by the Eugene Black  mission, and if other nations will join us, I will seek a special  authorization from the Congress of $200 million for East Asian regional  programs.  
1967-164	1967	We are eager to turn our resources to peace. Our efforts in behalf of  humanity I think need not be restricted by any parallel or by any boundary  line. The moment that peace comes, as I pledged in Baltimore, I will ask  the Congress for funds to join in an international program of  reconstruction and development for all the people of Vietnam--and their  deserving neighbors who wish our help.  
1967-165	1967	We shall continue to hope for a reconciliation between the people of  Mainland China and the world community--including working together in all  the tasks of arms control, security, and progress on which the fate of the  Chinese people, like their fellow men elsewhere, depends.  
1967-166	1967	We would be the first to welcome a China which decided to respect her  neighbors' rights. We would be the first to applaud her were she to apply  her great energies and intelligence to improving the welfare of her people.  And we have no intention of trying to deny her legitimate needs for  security and friendly relations with her neighboring countries.  
1967-167	1967	Our hope that all of this will someday happen rests on the conviction that  we, the American people and our allies, will and are going to see Vietnam  through to an honorable peace.  
1967-168	1967	We will support all appropriate initiatives by the United Nations, and  others, which can bring the several parties together for unconditional  discussions of peace--anywhere, any time. And we will continue to take  every possible initiative ourselves to constantly probe for peace.  
1967-169	1967	Until such efforts succeed, or until the infiltration ceases, or until the  conflict subsides, I think the course of wisdom for this country is that we  just must firmly pursue our present course. We will stand firm in Vietnam.  
1967-170	1967	I think you know that our fighting men there tonight bear the heaviest  burden of all. With their lives they serve their Nation. We must give them  nothing less than our full support--and we have given them that--nothing  less than the determination that Americans have always given their fighting  men. Whatever our sacrifice here, even if it is more than $5 a month, it is  small compared to their own.  
1967-171	1967	How long it will take I cannot prophesy. I only know that the will of the  American people, I think, is tonight being tested.  
1967-172	1967	Whether we can fight a war of limited objectives over a period of time, and  keep alive the hope of independence and stability for people other than  ourselves; whether we can continue to act with restraint when the  temptation to "get it over with" is inviting but dangerous; whether we can  accept the necessity of choosing "a great evil in order to ward off a  greater"; whether we can do these without arousing the hatreds and the  passions that are ordinarily loosed in time of war--on all these questions  so much turns.  
1967-173	1967	The answers will determine not only where we are, but "whither we are  tending."  
1967-174	1967	A time of testing--yes. And a time of transition. The transition is  sometimes slow; sometimes unpopular; almost always very painful; and often  quite dangerous.  
1967-175	1967	But we have lived with danger for a long time before, and we shall live  with it for a long time yet to come. We know that "man is born unto  trouble." We also know that this Nation was not forged and did not survive  and grow and prosper without a great deal of sacrifice from a great many  men.  
1967-176	1967	For all the disorders that we must deal with, and all the frustrations that  concern us, and all the anxieties that we are called upon to resolve, for  all the issues we must face with the agony that attends them, let us  remember that "those who expect to reap the blessings of freedom must, like  men, undergo the fatigues of supporting it."  
1967-177	1967	But let us also count not only our burdens but our blessings--for they are  many.  
1967-178	1967	And let us give thanks to the One who governs us all.  
1967-179	1967	Let us draw encouragement from the signs of hope--for they, too, are many.  
1967-180	1967	Let us remember that we have been tested before and America has never been  found wanting.  
1967-181	1967	So with your understanding, I would hope your confidence, and your support,  we are going to persist--and we are going to succeed.  
1968-1	1968	Mr. Speaker, Mr. President, Members of the Congress, and my fellow  Americans:  
1968-2	1968	I was thinking as I was walking down the aisle tonight of what Sam Rayburn  told me many years ago: The Congress always extends a very warm welcome to  the President--as he comes in.  
1968-3	1968	Thank all of you very, very much.  
1968-4	1968	I have come once again to this Chamber--the home of our democracy--to give  you, as the Constitution requires, "Information of the State of the  Union."  
1968-5	1968	I report to you that our country is challenged, at home and abroad:  
1968-6	1968	--that it is our will that is being tried, not our strength; our sense of  purpose, not our ability to achieve a better America;  
1968-7	1968	--that we have the strength to meet our every challenge; the physical  strength to hold the course of decency and compassion at home; and the  moral strength to support the cause of peace in the world.  
1968-8	1968	And I report to you that I believe, with abiding conviction, that this  people--nurtured by their deep faith, tutored by their hard lessons, moved  by their high aspirations--have the will to meet the trials that these times  impose.  
1968-9	1968	Since I reported to you last January:  
1968-10	1968	--Three elections have been held in Vietnam--in the midst of war and under  the constant threat of violence.  
1968-11	1968	--A President, a Vice President, a House and Senate, and village officials  have been chosen by popular, contested ballot.  
1968-12	1968	--The enemy has been defeated in battle after battle.  
1968-13	1968	--The number of South Vietnamese living in areas under Government  protection tonight has grown by more than a million since January of last  year.  
1968-14	1968	These are all marks of progress. Yet:  
1968-15	1968	--The enemy continues to pour men and material across frontiers and into  battle, despite his continuous heavy losses.  
1968-16	1968	--He continues to hope that America's will to persevere can be broken.  Well--he is wrong. America will persevere. Our patience and our  perseverance will match our power. Aggression will never prevail.  
1968-17	1968	But our goal is peace--and peace at the earliest possible moment.  
1968-18	1968	Right now we are exploring the meaning of Hanoi's recent statement. There  is no mystery about the questions which must be answered before the bombing  is stopped.  
1968-19	1968	We believe that any talks should follow the San Antonio formula that I  stated last September, which said:  
1968-20	1968	--The bombing would stop immediately if talks would take place promptly and  with reasonable hopes that they would be productive.  
1968-21	1968	--And the other side must not take advantage of our restraint as they have  in the past. This Nation simply cannot accept anything less without  jeopardizing the lives of our men and of our allies.  
1968-22	1968	If a basis for peace talks can be established on the San Antonio  foundations--and it is my hope and my prayer that they can--we would  consult with our allies and with the other side to see if a complete  cessation of hostilities--a really true cease-fire--could be made the first  order of business. I will report at the earliest possible moment the  results of these explorations to the American people.  
1968-23	1968	I have just recently returned from a very fruitful visit and talks with His  Holiness the Pope and I share his hope--as he expressed it earlier  today--that both sides will extend themselves in an effort to bring an end  to the war in Vietnam. I have today assured him that we and our allies will  do our full part to bring this about.  
1968-24	1968	Since I spoke to you last January, other events have occurred that have  major consequences for world peace.  
1968-25	1968	--The Kennedy Round achieved the greatest reduction in tariff barriers in  all the history of trade negotiations.  
1968-26	1968	--The nations of Latin America at Punta del Este resolved to move toward  economic integration.  
1968-27	1968	--In Asia, the nations from Korea and Japan to Indonesia and Singapore  worked behind America's shield to strengthen their economies and to broaden  their political cooperation.  
1968-28	1968	--In Africa, from which the distinguished Vice President has just returned,  he reports to me that there is a spirit of regional cooperation that is  beginning to take hold in very practical ways.  
1968-29	1968	These events we all welcomed. Yet since I last reported to you, we and the  world have been confronted by a number of crises:  
1968-30	1968	--During the Arab-Israeli war last June, the hot line between Washington  and Moscow was used for the first time in our history. A cease-fire was  achieved without a major power confrontation.  
1968-31	1968	Now the nations of the Middle East have the opportunity to cooperate with  Ambassador Jarring's U.N. mission and they have the responsibility to find  the terms of living together in stable peace and dignity, and we shall do  all in our power to help them achieve that result.  
1968-32	1968	--Not far from this scene of conflict, a crisis flared on Cyprus involving  two peoples who are America's friends: Greece and Turkey. Our very able  representative, Mr. Cyrus Vance, and others helped to ease this tension.  
1968-33	1968	--Turmoil continues on the mainland of China after a year of violent  disruption. The radical extremism of their Government has isolated the  Chinese people behind their own borders. The United States, however,  remains willing to permit the travel of journalists to both our countries;  to undertake cultural and educational exchanges; and to talk about the  exchange of basic food crop materials.  
1968-34	1968	Since I spoke to you last, the United States and the Soviet Union have  taken several important steps toward the goal of international  cooperation.  
1968-35	1968	As you will remember, I met with Chairman Kosygin at Glassboro and we  achieved if not accord, at least a clearer understanding of our respective  positions after 2 days of meeting.  
1968-36	1968	Because we believe the nuclear danger must be narrowed, we have worked with  the Soviet Union and with other nations to reach an agreement that will  halt the spread of nuclear weapons. On the basis of communications from  Ambassador Fisher in Geneva this afternoon, I am encouraged to believe that  a draft treaty can be laid before the conference in Geneva in the very near  future. I hope to be able to present that treaty to the Senate this year  for the Senate's approval.  
1968-37	1968	We achieved, in 1967, a consular treaty with the Soviets, the first  commercial air agreement between the two countries, and a treaty banning  weapons in outer space. We shall sign, and submit to the Senate shortly, a  new treaty with the Soviets and with others for the protection of  astronauts.  
1968-38	1968	Serious differences still remain between us, yet in these relations, we  have made some progress since Vienna, the Berlin Wall, and the Cuban  missile crisis.  
1968-39	1968	But despite this progress, we must maintain a military force that is  capable of deterring any threat to this Nation's security, whatever the  mode of aggression. Our choices must not be confined to total war--or to  total acquiescence.  
1968-40	1968	We have such a military force today. We shall maintain it.  
1968-41	1968	I wish--with all of my heart--that the expenditures that are necessary to  build and to protect our power could all be devoted to the programs of  peace. But until world conditions permit, and until peace is assured,  America's might--and America's bravest sons who wear our Nation's  uniform--must continue to stand guard for all of us--as they gallantly do  tonight in Vietnam and other places in the world.  
1968-42	1968	Yet neither great weapons nor individual courage can provide the conditions  of peace.  
1968-43	1968	For two decades America has committed itself against the tyranny of want  and ignorance in the world that threatens the peace. We shall sustain that  commitment. This year I shall propose:  
1968-44	1968	--That we launch, with other nations, an exploration of the ocean depths to  tap its wealth, and its energy, and its abundance.  
1968-45	1968	--That we contribute our fair share to a major expansion of the  International Development Association, and to increase the resources of the  Asian Development Bank.  
1968-46	1968	--That we adopt a prudent aid program, rooted in the principle of  self-help.  
1968-47	1968	--That we renew and extend the food for freedom program.  
1968-48	1968	Our food programs have already helped millions avoid the horrors of  famine.  
1968-49	1968	But unless the rapid growth of population in developing countries is  slowed, the gap between rich and poor will widen steadily.  
1968-50	1968	Governments in the developing countries must take such facts into  consideration. We in the United States are prepared to help assist them in  those efforts.  
1968-51	1968	But we must also improve the lives of children already born in the villages  and towns and cities on this earth. They can be taught by great teachers  through space communications and the miracle of satellite television--and we  are going to bring to bear every resource of mind and technology to help  make this dream come true.  
1968-52	1968	Let me speak now about some matters here at home.  
1968-53	1968	Tonight our Nation is accomplishing more for its people than has ever been  accomplished before. Americans are prosperous as men have never been in  recorded history. Yet there is in the land a certain restlessness--a  questioning.  
1968-54	1968	The total of our Nation's annual production is now above $800 billion. For  83 months this Nation has been on a steady upward trend of growth.  
1968-55	1968	All about them, most American families can see the evidence of growing  abundance: higher paychecks, humming factories, new cars moving down new  highways. More and more families own their own homes, equipped with more  than 70 million television sets.  
1968-56	1968	A new college is founded every week. Today more than half of the high  school graduates go on to college.  
1968-57	1968	There are hundreds of thousands of fathers and mothers who never completed  grammar school--who will see their children graduate from college.  
1968-58	1968	Why, then, this restlessness?  
1968-59	1968	Because when a great ship cuts through the sea, the waters are always  stirred and troubled.  
1968-60	1968	And our ship is moving. It is moving through troubled and new waters; it is  moving toward new and better shores.  
1968-61	1968	We ask now, not how can we achieve abundance?--but how shall we use our  abundance? Not, is there abundance enough for all?--but, how can all share  in our abundance?  
1968-62	1968	While we have accomplished much, much remains for us to meet and much  remains for us to master.  
1968-63	1968	--In some areas, the jobless rate is still three or four times the national  average.  
1968-64	1968	--Violence has shown its face in some of our cities.  
1968-65	1968	--Crime increases on our streets.  
1968-66	1968	--Income for farm workers remains far behind that for urban workers; and  parity for our farmers who produce our food is still just a hope--not an  achievement.  
1968-67	1968	--New housing construction is far less than we need--to assure decent  shelter for every family.  
1968-68	1968	--Hospital and medical costs are high, and they are rising.  
1968-69	1968	--Many rivers--and the air in many cities--remain badly polluted. And our  citizens suffer from breathing that air.  
1968-70	1968	We have lived with conditions like these for many, many years. But much  that we once accepted as inevitable, we now find absolutely intolerable.  
1968-71	1968	In our cities last summer, we saw how wide is the gulf for some Americans  between the promise and the reality of our society.  
1968-72	1968	We know that we cannot change all of this in a day. It represents the  bitter consequences of more than three centuries.  
1968-73	1968	But the issue is not whether we can change this; the issue is whether we  will change this.  
1968-74	1968	Well, I know we can. And I believe we will.  
1968-75	1968	This then is the work we should do in the months that are ahead of us in  this Congress.  
1968-76	1968	The first essential is more jobs, useful jobs for tens of thousands who can  become productive and can pay their own way.  
1968-77	1968	Our economy has created 7 1/2 million new jobs in the past 4 years. It is  adding more than a million and a half new jobs this year.  
1968-78	1968	Through programs passed by the Congress, job training is being given  tonight to more than a million Americans in this country.  
1968-79	1968	This year, the time has come when we must get to those who are last in  line--the hard-core unemployed--the hardest to reach.  
1968-80	1968	Employment officials estimate that 500,000 of these persons are now  unemployed in the major cities of America. Our objective is to place these  500,000 in private industry jobs within the next 3 years.  
1968-81	1968	To do this, I propose a $2. 1 billion manpower program in the coming fiscal  year--a 25 percent increase over the current year. Most of this increase  will be used to start a new partnership between government and private  industry to train and to hire the hard-core unemployed persons. I know of  no task before us of more importance to us, to the country, or to our  future.  
1968-82	1968	Another essential is to rebuild our cities.  
1968-83	1968	Last year the Congress authorized $662 million for the Model Cities  program. I requested the full amount of that authorization to help meet the  crisis in the cities of America. But the Congress appropriated only $312  million--less than half.  
1968-84	1968	This year I urge the Congress to honor my request for model cities funds to  rebuild the centers of American cities by granting us the full amount that  you in the Congress authorized--$1 billion.  
1968-85	1968	The next essential is more housing--and more housing now.  
1968-86	1968	Surely a nation that can go to the moon can place a decent home within the  reach of its families.  
1968-87	1968	Therefore we must call together the resources of industry and labor, to  start building 300,000 housing units for low- and middle-income families  next year--that is three times more than this year. We must make it  possible for thousands of families to become homeowners, not rent-payers.  
1968-88	1968	I propose, for the consideration of this Congress, a 10-year campaign to  build 6 million new housing units for low and middle-income families. Six  million units in the next 10 years. We have built 530,000 the last 10  years.  
1968-89	1968	Better health for our children--all of our children--is essential if we are  to have a better America.  
1968-90	1968	Last year, Medicare, Medicaid, and other new programs that you passed in  the Congress brought better health to more than 25 million Americans.  
1968-91	1968	American medicine--with the very strong support and cooperation of public  resources--has produced a phenomenal decline in the death rate from many of  the dread diseases.  
1968-92	1968	But it is a shocking fact that, in saving the lives of babies, America  ranks 15th among the nations of the world. And among children, crippling  defects are often discovered too late for any corrective action. This is a  tragedy that Americans can, and Americans should, prevent.  
1968-93	1968	I shall, therefore, propose to the Congress a child health program to  provide, over the next 5 years, for families unable to afford it--access to  health services from prenatal care of the mother through the child's first  year.  
1968-94	1968	When we do that you will find it is the best investment we ever made  because we will get these diseases in their infancy and we will find a cure  in a great many instances that we can never find by overcrowding our  hospitals when they are grown.  
1968-95	1968	Now when we act to advance the consumer's cause I think we help every  American.  
1968-96	1968	Last year, with very little fanfare the Congress and the executive branch  moved in that field.  
1968-97	1968	We enacted the Wholesome Meat Act, the Flammable Fabrics Act, the Product  Safety Commission, and a law to improve clinical laboratories.  
1968-98	1968	And now, I think, the time has come to complete our unfinished work. The  Senate has already passed the truth-in-lending bill, the fire safety bill,  and the pipeline safety laws.  
1968-99	1968	Tonight I plead with the House to immediately act upon these measures and I  hope take favorable action upon all of them. I call upon the Congress to  enact, without delay, the remainder of the 12 vital consumer protection  laws that I submitted to the Congress last year.  
1968-100	1968	I also urge final action on a measure that is already passed by the House  to guard against fraud and manipulation in the Nation's commodity exchange  market.  
1968-101	1968	These measures are a pledge to our people--to keep them safe in their homes  and at work, and to give them a fair deal in the marketplace.  
1968-102	1968	And I think we must do more. I propose:  
1968-103	1968	--New powers for the Federal Trade Commission to stop those who defraud and  who swindle our public.  
1968-104	1968	--New safeguards to insure the quality of fish and poultry, and the safety  of our community water supplies.  
1968-105	1968	--A major study of automobile insurance.  
1968-106	1968	--Protection against hazardous radiation from television sets and other  electronic equipment.  
1968-107	1968	And to give the consumer a stronger voice, I plan to appoint a consumer  counsel in the Justice Department--a lawyer for the American consumer--to  work directly under the Attorney General, to serve the President's Special  Assistant for Consumer Affairs, and to serve the consumers of this land.  
1968-108	1968	This Congress--Democrats and Republicans--can earn the thanks of history.  We can make this truly a new day for the American consumer, and by giving  him this protection we can live in history as the consumer-conscious  Congress.  
1968-109	1968	So let us get on with the work. Let us act soon.  
1968-110	1968	We, at every level of the government, State, local, Federal, know that the  American people have had enough of rising crime and lawlessness in this  country.  
1968-111	1968	They recognize that law enforcement is first the duty of local police and  local government.  
1968-112	1968	They recognize that the frontline headquarters against crime is in the  home, the church, the city hall and the county courthouse and the  statehouse--not in the far-removed National Capital of Washington.  
1968-113	1968	But the people also recognize that the National Government can and the  National Government should help the cities and the States in their war on  crime to the full extent of its resources and its constitutional authority.  And this we shall do.  
1968-114	1968	This does not mean a national police force. It does mean help and financial  support:  
1968-115	1968	--to develop State and local master plans to combat crime,  
1968-116	1968	--to provide better training and better pay for police, and  
1968-117	1968	--to bring the most advanced technology to the war on crime in every city  and every county in America.  
1968-118	1968	There is no more urgent business before this Congress than to pass the Safe  Streets Act this year that I proposed last year. That law will provide  these required funds. They are so critically needed that I have doubled my  request under this act to $100 million in fiscal 1969.  
1968-119	1968	And I urge the Congress to stop the trade in mail-order murder, to stop it  this year by adopting a proper gun control law.  
1968-120	1968	This year, I will propose a Drug Control Act to provide stricter penalties  for those who traffic in LSD and other dangerous drugs with our people.  
1968-121	1968	I will ask for more vigorous enforcement of all of our drug laws by  increasing the number of Federal drug and narcotics control officials by  more than 30 percent. The time has come to stop the sale of slavery to the  young. I also request you to give us funds to add immediately 100 assistant  United States attorneys throughout the land to help prosecute our criminal  laws. We have increased our judiciary by 40 percent and we have increased  our prosecutors by 16 percent. The dockets are full of cases because we  don't have assistant district attorneys to go before the Federal judge and  handle them. We start these young lawyers at $8,200 a year. And the docket  is clogged because we don't have authority to hire more of them.  
1968-122	1968	I ask the Congress for authority to hire 100 more. These young men will  give special attention to this drug abuse, too.  
1968-123	1968	Finally, I ask you to add 100 FBI agents to strengthen law enforcement in  the Nation and to protect the individual rights of every citizen.  
1968-124	1968	A moment ago I spoke of despair and frustrated hopes in the cities where  the fires of disorder burned last summer. We can--and in time we  will--change that despair into confidence, and change those frustrations  into achievements. But violence will never bring progress.  
1968-125	1968	We can make progress only by attacking the causes of violence and only  where there is civil order founded on justice.  
1968-126	1968	Today we are helping local officials improve their capacity to deal  promptly with disorders.  
1968-127	1968	Those who preach disorder and those who preach violence must know that  local authorities are able to resist them swiftly, to resist them sternly,  and to resist them decisively.  
1968-128	1968	I shall recommend other actions:  
1968-129	1968	--To raise the farmers' income by establishing a security commodity reserve  that will protect the market from price-depressing stocks and protect the  consumer from food scarcity.  
1968-130	1968	--I shall recommend programs to help farmers bargain more effectively for  fair prices.  
1968-131	1968	--I shall recommend programs for new air safety measures.  
1968-132	1968	--Measures to stem the rising costs of medical care.  
1968-133	1968	--Legislation to encourage our returning veterans to devote themselves to  careers in community service such as teaching, and being firemen, and  joining our police force, and our law enforcement officials.  
1968-134	1968	--I shall recommend programs to strengthen and finance our anti-pollution  efforts.  
1968-135	1968	--Fully funding all of the $2.18 billion poverty program that you in the  Congress had just authorized in order to bring opportunity to those who  have been left far behind.  
1968-136	1968	--I shall recommend an Educational Opportunity Act to speed up our drive to  break down the financial barriers that are separating our young people from  college.  
1968-137	1968	I shall also urge the Congress to act on several other vital pending  bills--especially the civil rights measures--fair jury trials, protection  of Federal rights, enforcement of equal employment opportunity, and fair  housing.  
1968-138	1968	The unfinished work of the first session must be completed--the Higher  Education Act, the Juvenile Delinquency Act, conservation measures to save  the redwoods of California, and to preserve the wonders of our scenic  rivers, the Highway Beautification Act--and all the other measures for a  cleaner, and for a better, and for a more beautiful America.  
1968-139	1968	Next month we'll begin our 8th year of uninterrupted prosperity. The  economic outlook for this year is one of steady growth--if we are vigilant.  
1968-140	1968	True, there are some clouds on the horizon. Prices are rising. Interest  rates have passed the peak of 1966; and if there is continued inaction on  the tax bill, they will climb even higher.  
1968-141	1968	I warn the Congress and the Nation tonight that this failure to act on the  tax bill will sweep us into an accelerating spiral of price increases, a  slump in homebuilding, and a continuing erosion of the American dollar.  
1968-142	1968	This would be a tragedy for every American family. And I predict that if  this happens, they will all let us know about it.  
1968-143	1968	We--those of us in the executive branch, in the Congress, and the leaders  of labor and business--must do everything we can to prevent that kind of  misfortune.  
1968-144	1968	Under the new budget, the expenditures for 1969 will increase by $10.4  billion. Receipts will increase by $22.3 billion including the added tax  revenues. Virtually all of this expenditure increase represents the  mandatory cost of our defense efforts, $3 billion; increased interest,  almost $1 billion; or mandatory payments under laws passed by  Congress--such as those provided in the Social Security Act that you passed  in 1967, and to Medicare and Medicaid beneficiaries, veterans, and farmers,  of about $4 1/2 billion; and the additional $1 billion 600 million next  year for the pay increases that you passed in military and civilian pay.  That makes up the $10 billion that is added to the budget. With few  exceptions, very few, we are holding the fiscal 1969 budget to last year's  level, outside of those mandatory and required increases.  
1968-145	1968	A Presidential commission composed of distinguished congressional fiscal  leaders and other prominent Americans recommended this year that we adopt a  new budget approach. I am carrying out their recommendations in this year's  budget. This budget, therefore, for the first time accurately covers all  Federal expenditures and all Federal receipts, including for the first time  in one budget $47 billion from the social security, Medicare, highway, and  other trust funds.  
1968-146	1968	The fiscal 1969 budget has expenditures of approximately $186 billion, with  total estimated revenues, including the tax bill, of about $178 billion.  
1968-147	1968	If the Congress enacts the tax increase, we will reduce the budget deficit  by some $12 billion. The war in Vietnam is costing us about $25 billion and  we are asking for about $12 billion in taxes--and if we get that $12  billion tax bill we will reduce the deficit from about $20 billion in 1968  to about $8 billion in 1969.  
1968-148	1968	Now, this is a tight budget. It follows the reduction that I made in  cooperation with the Congress--a reduction made after you had reviewed  every appropriations bill and reduced the appropriations by some $5 or $6  billion and expenditures by $1.5 billion. We conferred together and I  recommended to the Congress and you subsequently approved taking 2 percent  from payrolls and 10 percent from controllable expenditures. We therefore  reduced appropriations almost $10 billion last session and expenditures  over $4 billion. Now, that was in the budget last year.  
1968-149	1968	I ask the Congress to recognize that there are certain selected programs  that meet the Nation's most urgent needs and they have increased. We have  insisted that decreases in very desirable but less urgent programs be made  before we would approve any increases. So I ask the Congress tonight:  
1968-150	1968	--to hold its appropriations to the budget requests, and  
1968-151	1968	--to act responsibly early this year by enacting the tax surcharge which  for the average American individual amounts to about a penny out of each  dollar's income.  
1968-152	1968	This tax increase would yield about half of the $23 billion per year that  we returned to the people in the tax reduction bills of 1964 and 1965.  
1968-153	1968	This must be a temporary measure, which expires in less than 2 years.  Congress can repeal it sooner if the need has passed. But Congress can  never repeal inflation.  
1968-154	1968	The leaders of American business and the leaders of American labor--those  who really have power over wages and prices--must act responsibly, and in  their Nation's interest by keeping increases in line with productivity. If  our recognized leaders do not do this, they and those for whom they speak  and all of us are going to suffer very serious consequences.  
1968-155	1968	On January 1st, I outlined a program to reduce our balance of payments  deficit sharply this year. We will ask the Congress to help carry out those  parts of the program which require legislation. We must restore equilibrium  to our balance of payments.  
1968-156	1968	We must also strengthen the international monetary system. We have assured  the world that America's full gold stock stands behind our commitment to  maintain the price of gold at $35 an ounce. We must back this commitment by  legislating now to free our gold reserves.  
1968-157	1968	Americans, traveling more than any other people in history, took $4 billion  out of their country last year in travel costs. We must try to reduce the  travel deficit that we have of more than $2 billion. We are hoping that we  can reduce it by $500 million--without unduly penalizing the travel of  teachers, students, business people who have essential and necessary  travel, or people who have relatives abroad whom they want to see. Even  with this reduction of $500 million, the American people will still be  traveling more overseas than they did in 1967, 1966, or 1965 or any other  year in their history.  
1968-158	1968	If we act together as I hope we can, I believe we can continue our economic  expansion which has already broken all past records. And I hope that we can  continue that expansion in the days ahead.  
1968-159	1968	Each of these questions I have discussed with you tonight is a question of  policy for our people. Therefore, each of them should be--and doubtless  will be--debated by candidates for public office this year.  
1968-160	1968	I hope those debates will be marked by new proposals and by a seriousness  that matches the gravity of the questions themselves.  
1968-161	1968	These are not appropriate subjects for narrow partisan oratory. They go to  the heart of what we Americans are all about--all of us, Democrats and  Republicans.  
1968-162	1968	Tonight I have spoken of some of the goals I should like to see America  reach. Many of them can be achieved this year--others by the time we  celebrate our Nation's 200th birthday--the bicentennial of our  independence.  
1968-163	1968	Several of these goals are going to be very hard to reach. But the State of  our Union will be much stronger 8 years from now on our 200th birthday if  we resolve to reach these goals now. They are more important--much more  important--than the identity of the party or the President who will then be  in office.  
1968-164	1968	These goals are what the fighting and our alliances are really meant to  protect.  
1968-165	1968	Can we achieve these goals?  
1968-166	1968	Of course we can--if we will.  
1968-167	1968	If ever there was a people who sought more than mere abundance, it is our  people.  
1968-168	1968	If ever there was a nation that was capable of solving its problems, it is  this Nation.  
1968-169	1968	If ever there were a time to know the pride and the excitement and the hope  of being an American--it is this time.  
1968-170	1968	So this, my friends, is the State of our Union: seeking, building, tested  many times in this past year--and always equal to the test.  
1968-171	1968	Thank you and good night.  
1969-1	1969	Mr. Speaker, Mr. President, Members of the Congress and my fellow  Americans:  
1969-2	1969	For the sixth and the last time, I present to the Congress my assessment of  the State of the Union.  
1969-3	1969	I shall speak to you tonight about challenge and opportunity--and about the  commitments that all of us have made together that will, if we carry them  out, give America our best chance to achieve the kind of great society that  we all want. Every President lives, not only with what is, but with what  has been and what could be.  
1969-4	1969	Most of the great events in his Presidency are part of a larger sequence  extending back through several years and extending back through several  other administrations.  
1969-5	1969	Urban unrest, poverty, pressures on welfare, education of our people, law  enforcement and law and order, the continuing crisis in the Middle East,  the conflict in Vietnam, the dangers of nuclear war, the great difficulties  of dealing with the Communist powers, all have this much in common: They  and their causes--the causes that gave rise to them--all of these have  existed with us for many years. Several Presidents have already sought to  try to deal with them. One or more Presidents will try to resolve them or  try to contain them in the years that are ahead of us.  
1969-6	1969	But if the Nation's problems are continuing, so are this great Nation's  assets:  
1969-7	1969	--our economy,  
1969-8	1969	--the democratic system,  
1969-9	1969	--our sense of exploration, symbolized most recently by the wonderful  flight of the Apollo 8, in which all Americans took great pride,  
1969-10	1969	--the good commonsense and sound judgment of the American people, and  
1969-11	1969	--their essential love of justice.  
1969-12	1969	We must not ignore our problems. But .neither should we ignore our  strengths. Those strengths are available to sustain a President of either  party--to support his progressive efforts both at home and overseas.  
1969-13	1969	Unfortunately, the departure of an administration does not mean the end of  the problems that this administration has faced. The effort to meet the  problems must go on, year after year, if the momentum that we have all  mounted together in these past years is not to be lost.  
1969-14	1969	Although the struggle for progressive change is continuous, there are times  when a watershed is reached--when there is--if not really a break with the  past--at least the fulfillment of many of its oldest hopes, and a stepping  forth into a new environment, to seek new goals. I think the past 5 years  have been such a time.  
1969-15	1969	We have finished a major part of the old agenda.  
1969-16	1969	Some of the laws that we wrote have already, in front of our eyes, taken on  the flesh of achievement.  
1969-17	1969	Medicare that we were unable to pass for so many years is now a part of  American life.  
1969-18	1969	Voting rights and the voting booth that we debated so long back in the  riffles, and the doors to public service, are open at last to all Americans  regardless of their color.  
1969-19	1969	Schools and school children all over America tonight are receiving Federal  assistance to go to good schools.  
1969-20	1969	Preschool education--Head Start--is already here to stay and, I think, so  are the Federal programs that tonight are keeping more than a million and a  half of the cream of our young people in the colleges and the universities  of this country.  
1969-21	1969	Part of the American earth--not only in description on a map, but in the  reality of our shores, our hills, our parks, our forests, and our  mountains--has been permanently set aside for the American public and for  their benefit. And there is more that will be set aside before this  administration ends.  
1969-22	1969	Five million Americans have been trained for jobs in new Federal programs.  
1969-23	1969	I think it is most important that we all realize tonight that this Nation  is close to full employment--with less unemployment than we have had at any  time in almost 20 years. That is not in theory; that is in fact. Tonight,  the unemployment rate is down to 3.3 percent. The number of jobs has grown  more than 8 1/2 million in the last 5 years. That is more than in all the  preceding 12 years.  
1969-24	1969	These achievements completed the full cycle, from idea to enactment and,  finally, to a place in the lives of citizens all across this country.  
1969-25	1969	I wish it were possible to say that everything that this Congress and the  administration achieved during this period had already completed that  cycle. But a great deal of what we have committed needs additional funding  to become a tangible realization.  
1969-26	1969	Yet the very existence of these commitments--these promises to the American  people, made by this Congress and by the executive branch of the  Government--are achievements in themselves, and failure to carry through on  our commitments would be a tragedy for this Nation.  
1969-27	1969	This much is certain: No one man or group of men made these commitments  alone. Congress and the executive branch, with their checks and balances,  reasoned together and finally wrote them into the law of the land. They now  have all the moral force that the American political system can summon when  it acts as one.  
1969-28	1969	They express America's common determination to achieve goals. They imply  action.  
1969-29	1969	In most cases, you have already begun that action--but it is not fully  completed, of course.  
1969-30	1969	Let me speak for a moment about these commitments. I am going to speak in  the language which the Congress itself spoke when it passed these measures.  I am going to quote from your words.  
1969-31	1969	In 1966, Congress declared that "improving the quality of urban life is the  most critical domestic problem facing the United States." Two years later  it affirmed the historic goal of "a decent home . . . for every American  family." That is your language.  
1969-32	1969	Now to meet these commitments, we must increase our support for the model  cities program, where blueprints of change are already being prepared in  more than 150 American cities.  
1969-33	1969	To achieve the goals of the Housing Act of 1968 that you have already  passed, we should begin this year more than 500,000 homes for needy  families in the coming fiscal year. Funds are provided in the new budget to  do just this. This is almost 10 times--10 times--the average rate of the  past 10 years.  
1969-34	1969	Our cities and our towns are being pressed for funds to meet the needs of  their growing populations. So I believe an urban development bank should be  created by the Congress. This bank could obtain resources through the  issuance of taxable bonds and it could then lend these resources at reduced  rates to the communities throughout the land for schools, hospitals, parks,  and other public facilities.  
1969-35	1969	Since we enacted the Social Security Act back in 1935, Congress has  recognized the necessity to "make more adequate provision for aged persons  . . . through maternal and child welfare . . . and public health." Those  are the words of the Congress--"more adequate."  
1969-36	1969	The time has come, I think, to make it more adequate. I believe we should  increase social security benefits, and I am so recommending tonight.  
1969-37	1969	I am suggesting that there should be an overall increase in benefits of at  least 13 percent. Those who receive only the minimum of $55 should get $80  a month.  
1969-38	1969	Our Nation, too, is rightfully proud of our medical advances. But we should  remember that our country ranks 15th among the nations of the world in its  infant mortality rate.  
1969-39	1969	I think we should assure decent medical care for every expectant mother and  for their children during the first year of their life in the United States  of America.  
1969-40	1969	I think we should protect our children and their families from the costs of  catastrophic illness.  
1969-41	1969	As we pass on from medicine, I think nothing is clearer to the Congress  than the commitment that the Congress made to end poverty. Congress  expressed it well, I think, in 1964, when they said: "It is the policy of  the United States to eliminate the paradox of poverty in the midst of  plenty in this nation."  
1969-42	1969	This is the richest nation in the world. The antipoverty program has had  many achievements. It also has some failures. But we must not cripple it  after only 3 years of trying to solve the human problems that have been  with us and have been building up among us for generations.  
1969-43	1969	I believe the Congress this year will want to improve the administration of  the poverty program by reorganizing portions of it and transferring them to  other agencies. I believe, though, it will want to continue, until we have  broken the back of poverty, the efforts we are now making throughout this  land.  
1969-44	1969	I believe, and I hope the next administration--I believe they believe--that  the key to success in this effort is jobs. It is work for people who want  to work.  
1969-45	1969	In the budget for fiscal 1970, I shall recommend a total of $3.5 billion  for our job training program, and that is five times as much as we spent in  1964 trying to prepare Americans where they can work to earn their own  living.  
1969-46	1969	The Nation's commitment in the field of civil rights began with the  Declaration of Independence. They were extended by the 13th, 14th, and 15th  amendments. They have been powerfully strengthened by the enactment of  three far-reaching civil rights laws within the past 5 years, that this  Congress, in its wisdom, passed.  
1969-47	1969	On January 1 of this year, the Fair Housing Act of 1968 covered over 20  million American homes and apartments. The prohibition against racial  discrimination in that act should be remembered and it should be vigorously  enforced throughout this land.  
1969-48	1969	I believe we should also extend the vital provisions of the Voting Rights  Act for another 5 years.  
1969-49	1969	In the Safe Streets Act of 1968, Congress determined "To assist state and  local governments in reducing the incidence of crime."  
1969-50	1969	This year I am proposing that the Congress provide the full $300 million  that the Congress last year authorized to do just that.  
1969-51	1969	I hope the Congress will put the money where the authorization is.  
1969-52	1969	I believe this is an essential contribution to justice and to public order  in the United States. I hope these grants can be made to the States and  they can be used effectively to reduce the crime rate in this country.  
1969-53	1969	But all of this is only a small part of the total effort that must be  made--I think chiefly by the local governments throughout the Nation--if we  expect to reduce the toll of crime that we all detest.  
1969-54	1969	Frankly, as I leave the Office of the Presidency, one of my greatest  disappointments is our failure to secure passage of a licensing and  registration act for firearms. I think if we had passed that act, it would  have reduced the incidence of crime. I believe that the Congress should  adopt such a law, and I hope that it will at a not too distant date.  
1969-55	1969	In order to meet our long-standing commitment to make government as  efficient as possible, I believe that we should reorganize our postal  system along the lines of the Kappel[1] report.  
1969-56	1969	[Footnote 1: Frederick R. Kappel, Chairman of the Commission on Executive,  Legislative and Judicial Salaries.]  
1969-57	1969	I hope we can all agree that public service should never impose an  unreasonable financial sacrifice on able men and women who want to serve  their country.  
1969-58	1969	I believe that the recommendations of the Commission on Executive,  Legislative and Judicial Salaries are generally sound. Later this week, I  shall submit a special message which I reviewed with the leadership this  evening containing a proposal that has been reduced and has modified the  Commission's recommendation to some extent on the congressional salaries.  
1969-59	1969	For Members of Congress, I will recommend the basic compensation not of the  $50,000 unanimously recommended by the Kappel Commission and the other  distinguished Members, but I shall reduce that $50,000 to $42,500. I will  suggest that Congress appropriate a very small additional allowance for  official expenses, so that Members will not be required to use their salary  increase for essential official business.  
1969-60	1969	I would have submitted the Commission's recommendations, except the advice  that I received from the leadership--and you usually are consulted about  matters that affect the Congress--was that the Congress would not accept  the $50,000 recommendation, and if I expected my recommendation to be  seriously considered, I should make substantial reductions. That is the  only reason I didn't go along with the Kappel report.  
1969-61	1969	In 1967 I recommended to the Congress a fair and impartial random selection  system for the draft. I submit it again tonight for your most respectful  consideration.  
1969-62	1969	I know that all of us recognize that most of the things we do to meet all  of these commitments I talk about will cost money. If we maintain the  strong rate of growth that we have had in this country for the past 8  years, I think we shall generate the resources that we need to meet these  commitments.  
1969-63	1969	We have already been able to increase our support for major social  programs--although we have heard a lot about not being able to do anything  on the home front because of Vietnam; but we have been able in the last  5 years to increase our commitments for such things as health and education  from $30 billion in 1964 to $68 billion in the coming fiscal year. That is  more than double. That is more than it has ever been increased in the 188  years of this Republic, notwithstanding Vietnam.  
1969-64	1969	We must continue to budget our resources and budget them responsibly in a  way that will preserve our prosperity and will strengthen our dollar.  
1969-65	1969	Greater revenues and the reduced Federal spending required by Congress last  year have changed the budgetary picture dramatically since last January  when we made our estimates. At that time, you will remember that we  estimated we would have a deficit of $8 billion. Well, I am glad to report  to you tonight that the fiscal year ending June 30, 1969, this June, we are  going to have not a deficit, but we are going to have a $2.4 billion  surplus.  
1969-66	1969	You will receive the budget tomorrow. The budget for the next fiscal year,  that begins July 1--which you will want to examine very carefully in the  days ahead--will provide a $3.4 billion surplus.  
1969-67	1969	This budget anticipates the extension of the surtax that Congress enacted  last year. I have communicated with the President-elect, Mr. Nixon, in  connection with this policy of continuing the surtax for the time being.  
1969-68	1969	I want to tell you that both of us want to see it removed just as soon as  circumstances will permit, but the President-elect has told me that he has  concluded that until his administration, and this Congress, can examine the  appropriation bills, and each item in the budget, and can ascertain that  the facts justify permitting the surtax to expire or to be reduced, he, Mr.  Nixon, will support my recommendation that the surtax be continued.  
1969-69	1969	Americans, I believe, are united in the hope that the Paris talks will  bring an early peace to Vietnam. And if our hopes for an early settlement  of the war are realized, then our military expenditures can be reduced and  very substantial savings can be made to be used for other desirable  purposes, as the Congress may determine.  
1969-70	1969	In any event, I think it is imperative that we do all that we responsibly  can to resist inflation while maintaining our prosperity. I think all  Americans know that our prosperity is broad and it is deep, and it has  brought record profits, the highest in our history, and record wages.  
1969-71	1969	Our gross national product has grown more in the last 5 years than any  other period in our Nation's history. Our wages have been the highest. Our  profits have been the best. This prosperity has enabled millions to escape  the poverty that they would have otherwise had the last few years.  
1969-72	1969	I think also you will be very glad to hear that the Secretary of the  Treasury informs me tonight that in 1968 in our balance of payments we have  achieved a surplus. It appears that we have, in fact, done better this year  than we have done in any year in this regard since the year 1957.  
1969-73	1969	The quest for a durable peace, I think, has absorbed every administration  since the end of World War II. It has required us to seek a limitation of  arms races not only among the superpowers, but among the smaller nations as  well. We have joined in the test ban treaty of 1963, the outer space treaty  of 1967, and the treaty against the spread of nuclear weapons in 1968.  
1969-74	1969	This latter agreement--the nonproliferation treaty--is now pending in the  Senate and it has been pending there since last July. In my opinion, delay  in ratifying it is not going to be helpful to the cause of peace. America  took the lead in negotiating this treaty and America should now take steps  to have it approved at the earliest possible date.  
1969-75	1969	Until a way can be found to scale down the level of arms among the  superpowers, mankind cannot view the future without fear and great  apprehension. So, I believe that we should resume the talks with the Soviet  Union about limiting offensive and defensive missile systems. I think they  would already have been resumed except for Czechoslovakia and our election  this year.  
1969-76	1969	It was more than 20 years ago that we embarked on a program of trying to  aid the developing nations. We knew then that we could not live in good  conscience as a rich enclave on an earth that was seething in misery.  
1969-77	1969	During these years there have been great advances made under our program,  particularly against want and hunger, although we are disappointed at the  appropriations last year. We thought they were woefully inadequate. This  year I am asking for adequate funds for economic assistance in the hope  that we can further peace throughout the world.  
1969-78	1969	I think we must continue to support efforts in regional cooperation. Among  those efforts, that of Western Europe has a very special place in America's  concern.  
1969-79	1969	The only course that is going to permit Europe to play the great world role  that its resources permit is to go forward to unity. I think America  remains ready to work with a united Europe, to work as a partner on the  basis of equality.  
1969-80	1969	For the future, the quest for peace, I believe, requires:  
1969-81	1969	--that we maintain the liberal trade policies that have helped us become  the leading nation in world trade,  
1969-82	1969	--that we strengthen the international monetary system as an instrument of  world prosperity, and  
1969-83	1969	--that we seek areas of agreement with the Soviet Union where the interests  of both nations and the interests of world peace are properly served.  
1969-84	1969	The strained relationship between us and the world's leading Communist  power has not ended--especially in the light of the brutal invasion of  Czechoslovakia. But totalitarianism is no less odious to us because we are  able to reach some accommodation that reduces the danger of world  catastrophe.  
1969-85	1969	What we do, we do in the interest of peace in the world. We earnestly hope  that time will bring a Russia that is less afraid of diversity and  individual freedom.  
1969-86	1969	The quest for peace tonight continues in Vietnam, and in the Paris talks.  
1969-87	1969	I regret more than any of you know that it has not been possible to restore  peace to South Vietnam.  
1969-88	1969	The prospects, I think, for peace are better today than at any time since  North Vietnam began its invasion with its regular forces more than 4 years  ago.  
1969-89	1969	The free nations of Asia know what they were not sure of at that time: that  America cares about their freedom, and it also cares about America's own  vital interests in Asia and throughout the Pacific.  
1969-90	1969	The North Vietnamese know that they cannot achieve their aggressive  purposes by force. There may be hard fighting before a settlement is  reached; but, I can assure you, it will yield no victory to the Communist  cause.  
1969-91	1969	I cannot speak to you tonight about Vietnam without paying a very personal  tribute to the men who have carried the battle out there for all of us. I  have been honored to be their Commander in Chief. The Nation owes them its  unstinting support while the battle continues--and its enduring gratitude  when their service is done.  
1969-92	1969	Finally, the quest for stable peace in the Middle East goes on in many  capitals tonight. America fully supports the unanimous resolution of the  U.N. Security Council which points the way. There must be a settlement of  the armed hostility that exists in that region of the world today. It is a  threat not only to Israel and to all the Arab States, but it is a threat to  every one of us and to the entire world as well.  
1969-93	1969	Now, my friends in Congress, I want to conclude with a few very personal  words to you.  
1969-94	1969	I rejected and rejected and then finally accepted the congressional  leadership's invitation to come here to speak this farewell to you in  person tonight.  
1969-95	1969	I did that for two reasons. One was philosophical. I wanted to give you my  judgment, as I saw it, on some of the issues before our Nation, as I view  them, before I leave.  
1969-96	1969	The other was just pure sentimental. Most all of my life as a public  official has been spent here in this building. For 38 years--since I worked  on that gallery as a doorkeeper in the House of Representatives--I have  known these halls, and I have known most of the men pretty well who walked  them.  
1969-97	1969	I know the questions that you face. I know the conflicts that you endure. I  know the ideals that you seek to serve.  
1969-98	1969	I left here first to become Vice President, and then to become, in a moment  of tragedy, the President of the United States.  
1969-99	1969	My term of office has been marked by a series of challenges, both at home  and throughout the world.  
1969-100	1969	In meeting some of these challenges, the Nation has found a new confidence.  In meeting others, it knew turbulence and doubt, and fear and hate.  
1969-101	1969	Throughout this time, I have been sustained by my faith in representative  democracy--a faith that I had learned here in this Capitol Building as an  employee and as a Congressman and as a Senator.  
1969-102	1969	I believe deeply in the ultimate purposes of this Nation--described by the  Constitution, tempered by history, embodied in progressive laws, and given  life by men and women that have been elected to serve their fellow  citizens.  
1969-103	1969	Now for 5 most demanding years in the White House, I have been strengthened  by the counsel and the cooperation of two great former Presidents, Harry S.  Truman and Dwight David Eisenhower. I have been guided by the memory of my  pleasant and close association with the beloved John F. Kennedy, and with  our greatest modern legislator, Speaker Sam Rayburn.  
1969-104	1969	I have been assisted by my friend every step of the way, Vice President  Hubert Humphrey. I am so grateful that I have been supported daily by the  loyalty of Speaker McCormack and Majority Leader Albert.  
1969-105	1969	I have benefited from the wisdom of Senator Mike Mansfield, and I am sure  that I have avoided many dangerous pitfalls by the good commonsense counsel  of the President Pro Tem of the Senate, Senator Richard Brevard Russell.  
1969-106	1969	I have received the most generous cooperation from the leaders of the  Republican Party in the Congress of the United States, Senator Dirksen and  Congressman Gerald Ford, the Minority Leader.  
1969-107	1969	No President should ask for more, although I did upon occasions. But few  Presidents have ever been blessed with so much.  
1969-108	1969	President-elect Nixon, in the days ahead, is going to need your  understanding, just as I did. And he is entitled to have it. I hope every  Member will remember that the burdens he will bear as our President, will  be borne for all of us. Each of us should try not to increase these burdens  for the sake of narrow personal or partisan advantage.  
1969-109	1969	Now, it is time to leave. I hope it may be said, a hundred years from now,  that by working together we helped to make our country more just, more just  for all of its people, as well as to insure and guarantee the blessings of  liberty for all of our posterity.  
1969-110	1969	That is what I hope. But I believe that at least it will be said that we  tried.  
1970-1	1970	Mr. Speaker, Mr. President, my colleagues in the Congress, our  distinguished guests and my fellow Americans:  
1970-2	1970	To address a joint session of the Congress in this great Chamber in which I  was once privileged to serve is an honor for which I am deeply grateful.  
1970-3	1970	The State of the Union Address is traditionally an occasion for a lengthy  and detailed account by the President of what he has accomplished in the  past, what he wants the Congress to do in the future, and, in an election  year, to lay the basis for the political issues which might be decisive in  the fall.  
1970-4	1970	Occasionally there comes a time when profound and far-reaching events  command a break with tradition. This is such a time.  
1970-5	1970	I say this not only because 1970 marks the beginning of a new decade in  which America will celebrate its 200th birthday. I say it because new  knowledge and hard experience argue persuasively that both our programs and  our institutions in America need to be reformed.  
1970-6	1970	The moment has arrived to harness the vast energies and abundance of this  land to the creation of a new American experience, an experience richer and  deeper and more truly a reflection of the goodness and grace of the human  spirit.  
1970-7	1970	The seventies will be a time of new beginnings, a time of exploring both on  the earth and in the heavens, a time of discovery. But the time has also  come for emphasis on developing better ways of managing what we have and of  completing what man's genius has begun but left unfinished.  
1970-8	1970	Our land, this land that is ours together, is a great and a good land. It  is also an unfinished land, and the challenge of perfecting it is the  summons of the seventies.  
1970-9	1970	It is in that spirit that I address myself to those great issues facing our  Nation which are above partisanship.  
1970-10	1970	When we speak of America's priorities the first priority must always be  peace for America and the world.  
1970-11	1970	The major immediate goal of our foreign policy is to bring an end to the  war in Vietnam in a way that our generation will be remembered not so much  as the generation that suffered in war, but more for the fact that we had  the courage and character to win the kind of a just peace that the next  generation was able to keep.  
1970-12	1970	We are making progress toward that goal.  
1970-13	1970	The prospects for peace are far greater today than they were a year ago.  
1970-14	1970	A major part of the credit for this development goes to the Members of this  Congress who, despite their differences on the conduct of the war, have  overwhelmingly indicated their support of a just peace. By this action, you  have completely demolished the enemy's hopes that they can gain in  Washington the victory our fighting men have denied them in Vietnam.  
1970-15	1970	No goal could be greater than to make the next generation the first in this  century in which America was at peace with every nation in the world.  
1970-16	1970	I shall discuss in detail the new concepts and programs designed to achieve  this goal in a separate report on foreign policy, which I shall submit to  the Congress at a later date.  
1970-17	1970	Today, let me describe the directions of our new policies.  
1970-18	1970	We have based our policies on an evaluation of the world as it is, not as  it was 25 years ago at the conclusion of World War II. Many of the policies  which were necessary and right then are obsolete today.  
1970-19	1970	Then, because of America's overwhelming military and economic strength,  because of the weakness of other major free world powers and the inability  of scores of newly independent nations to defend, or even govern,  themselves, America had to assume the major burden for the defense of  freedom in the world.  
1970-20	1970	In two wars, first in Korea and now in Vietnam, we furnished most of the  money, most of the arms, most of the men to help other nations defend their  freedom.  
1970-21	1970	Today the great industrial nations of Europe, as well as Japan, have  regained their economic strength; and the nations of Latin America--and  many of the nations who acquired their freedom from colonialism after World  War II in Asia and Africa--have a new sense of pride and dignity and a  determination to assume the responsibility for their own defense.  
1970-22	1970	That is the basis of the doctrine I announced at Guam.  
1970-23	1970	Neither the defense nor the development of other nations can be exclusively  or primarily an American undertaking.  
1970-24	1970	The nations of each part of the world should assume the primary  responsibility for their own well-being; and they themselves should  determine the terms of that well-being.  
1970-25	1970	We shall be faithful to our treaty commitments, but we shall reduce our  involvement and our presence in other nations' affairs.  
1970-26	1970	To insist that other nations play a role is not a retreat from  responsibility; it is a sharing of responsibility.  
1970-27	1970	The result of this new policy has been not to weaken our alliances, but to  give them new life, new strength, a new sense of common purpose.  
1970-28	1970	Relations with our European allies are once again strong and healthy, based  on mutual consultation and mutual responsibility.  
1970-29	1970	We have initiated a new approach to Latin America in which we deal with  those nations as partners rather than patrons.  
1970-30	1970	The new partnership concept has been welcomed in Asia. We have developed an  historic new basis for Japanese-American friendship and cooperation, which  is the linchpin for peace in the Pacific.  
1970-31	1970	If we are to have peace in the last third of the century, a major factor  will be the development of a new relationship between the United States and  the Soviet Union.  
1970-32	1970	I would not underestimate our differences, but we are moving with precision  and purpose from an era of confrontation to an era of negotiation.  
1970-33	1970	Our negotiations on strategic arms limitations and in other areas will have  far greater chance for success if both sides enter them motivated by mutual  self-interest rather than naive sentimentality.  
1970-34	1970	It is with this same spirit that we have resumed discussions with Communist  China in our talks at Warsaw.  
1970-35	1970	Our concern in our relations with both these nations is to avoid a  catastrophic collision and to build a solid basis for peaceful settlement  of our differences.  
1970-36	1970	I would be the last to suggest that the road to peace is not difficult and  dangerous, but I believe our new policies have contributed to the prospect  that America may have the best chance since World War II to enjoy a  generation of uninterrupted peace. And that chance will be enormously  increased if we continue to have a relationship between Congress and the  Executive in which, despite differences in detail, where the security of  America and the peace of mankind are concerned, we act not as Republicans,  not as Democrats, but as Americans.  
1970-37	1970	As we move into the decade of the seventies, we have the greatest  opportunity for progress at home of any people in world history.  
1970-38	1970	Our gross national product will increase by $500 billion in the next 10  years. This increase alone is greater than the entire growth of the  American economy from 1790 to 1950.  
1970-39	1970	The critical question is not whether we will grow, but how we will use that  growth.  
1970-40	1970	The decade of the sixties was also a period of great growth economically.  But in that same 10-year period we witnessed the greatest growth of crime,  the greatest increase in inflation, the greatest social unrest in America  in 100 years. Never has a nation seemed to have had more and enjoyed it  less.  
1970-41	1970	At heart, the issue is the effectiveness of government.  
1970-42	1970	Ours has become--as it continues to be, and should remain--a society of  large expectations. Government helped to generate these expectations. It  undertook to meet them. Yet, increasingly, it proved unable to do so.  
1970-43	1970	As a people, we had too many visions--and too little vision.  
1970-44	1970	Now, as we enter the seventies, we should enter also a great age of reform  of the institutions of American government.  
1970-45	1970	Our purpose in this period should not be simply better management of the  programs of the past. The time has come for a new quest--a quest not for a  greater quantity of what we have, but for a new quality of life in  America.  
1970-46	1970	A major part of the substance for an unprecedented advance in this Nation's  approach to its problems and opportunities is contained in more than two  score legislative proposals which I sent to the Congress last year and  which still await enactment.  
1970-47	1970	I will offer at least a dozen more major programs in the course of this  session.  
1970-48	1970	At this point I do not intend to go through a detailed listing of what I  have proposed or will propose, but I would like to mention three areas in  which urgent priorities demand that we move and move now:  
1970-49	1970	First, we cannot delay longer in accomplishing a total reform of our  welfare system. When a system penalizes work, breaks up homes, robs  recipients of dignity, there is no alternative to abolishing that system  and adopting in its place the program of income support, job training, and  work incentives which I recommended to the Congress last year.  
1970-50	1970	Second, the time has come to assess and reform all of our institutions of  government at the Federal, State, and local level. It is time for a New  Federalism, in which, after 190 years of power flowing from the people and  local and State governments to Washington, D.C., it will begin to flow from  Washington back to the States and to the people of the United States.  
1970-51	1970	Third, we must adopt reforms which will expand the range of opportunities  for all Americans. We can fulfill the American dream only when each person  has a fair chance to fulfill his own dreams. This means equal voting  rights, equal employment opportunity, and new opportunities for expanded  ownership. Because in order to be secure in their human rights, people need  access to property rights.  
1970-52	1970	I could give similar examples of the need for reform in our programs for  health, education, housing, transportation, as well as other critical areas  which directly affect the well-being of millions of Americans.  
1970-53	1970	The people of the United States should wait no longer for these reforms  that would so deeply enhance the quality of their life.  
1970-54	1970	When I speak of actions which would be beneficial to the American people, I  can think of none more important than for the Congress to join this  administration in the battle to stop the rise in the cost of living.  
1970-55	1970	Now, I realize it is tempting to blame someone else for inflation. Some  blame business for raising prices. Some blame unions for asking for more  wages.  
1970-56	1970	But a review of the stark fiscal facts of the 1960's clearly demonstrates  where the primary blame for rising prices must be placed.  
1970-57	1970	In the decade of the sixties the Federal Government spent $57 billion more  than it took in in taxes.  
1970-58	1970	In that same decade the American people paid the bill for that deficit in  price increases which raised the cost of living for the average family of  four by $200 per month in America.  
1970-59	1970	Now millions of Americans are forced to go into debt today because the  Federal Government decided to go into debt yesterday. We must balance our  Federal budget so that American families will have a better chance to  balance their family budgets.  
1970-60	1970	Only with the cooperation of the Congress can we meet this highest priority  objective of responsible government. We are on the right track.  
1970-61	1970	We had a balanced budget in 1969. This administration cut more than $7  billion out of spending plans in order to produce a surplus in 1970, and in  spite of the fact that Congress reduced revenues by $3 billion, I shall  recommend a balanced budget for 1971.  
1970-62	1970	But I can assure you that not only to present, but to stay within, a  balanced budget requires some very hard decisions. It means rejecting  spending programs which would benefit some of the people when their net  effect would result in price increases for all the people.  
1970-63	1970	It is time to quit putting good money into bad programs. Otherwise, we will  end up with bad money and bad programs.  
1970-64	1970	I recognize the political popularity of spending programs, and particularly  in an election year. But unless we stop the rise in prices, the cost of  living for millions of American families will become unbearable and  government's ability to plan programs for progress for the future will  become impossible.  
1970-65	1970	In referring to budget cuts, there is one area where I have ordered an  increase rather than a cut--and that is the requests of those agencies with  the responsibilities for law enforcement.  
1970-66	1970	We have heard a great deal of overblown rhetoric during the sixties in  which the word "war" has perhaps too often been used--the war on poverty,  the war on misery, the war on disease, the war on hunger. But if there is  one area where the word "war" is appropriate it is in the fight against  crime. We must declare and win the war against the criminal elements which  increasingly threaten our cities, our homes, and our lives.  
1970-67	1970	We have a tragic example of this problem in the Nation's Capital, for whose  safety the Congress and the Executive have the primary responsibility. I  doubt if many Members of this Congress who live more than a few blocks from  here would dare leave their cars in the Capitol garage and walk home alone  tonight.  
1970-68	1970	Last year this administration sent to the Congress 13 separate pieces of  legislation dealing with organized crime, pornography, street crime,  narcotics, crime in the District of Columbia.  
1970-69	1970	None of these bills has reached my desk for signature.  
1970-70	1970	I am confident that the Congress will act now to adopt the legislation I  placed before you last year. We in the Executive have done everything we  can under existing law, but new and stronger weapons are needed in that  fight.  
1970-71	1970	While it is true that State and local law enforcement agencies are the  cutting edge in the effort to eliminate street crime, burglaries, murder,  my proposals to you have embodied my belief that the Federal Government  should play a greater role in working in partnership with these agencies.  
1970-72	1970	That is why 1971 Federal spending for local law enforcement will double  that budgeted for 1970.  
1970-73	1970	The primary responsibility for crimes that affect individuals is with local  and State rather than with Federal Government. But in the field of  organized crime, narcotics, pornography, the Federal Government has a  special responsibility it should fulfill. And we should make Washington,  D.C., where we have the primary responsibility, an example to the Nation  and the world of respect for law rather than lawlessness.  
1970-74	1970	I now turn to a subject which, next to our desire for peace, may well  become the major concern of the American people in the decade of the  seventies.  
1970-75	1970	In the next 10 years we shall increase our wealth by 50 percent. The  profound question is: Does this mean we will be 50 percent richer in a real  sense, 50 percent better off, 50 percent happier?  
1970-76	1970	Or does it mean that in the year 1980 the President standing in this place  will look back on a decade in which 70 percent of our people lived in  metropolitan areas choked by traffic, suffocated by smog, poisoned by  water, deafened by noise, and terrorized by crime?  
1970-77	1970	These are not the great questions that concern world leaders at summit  conferences. But people do not live at the summit. They live in the  foothills of everyday experience, and it is time for all of us to concern  ourselves with the way real people live in real life.  
1970-78	1970	The great question of the seventies is, shall we surrender to our  surroundings, or shall we make our peace with nature and begin to make  reparations for the damage we have done to our air, to our land, and to our  water?  
1970-79	1970	Restoring nature to its natural state is a cause beyond party and beyond  factions. It has become a common cause of all the people of this country.  It is a cause of particular concern to young Americans, because they more  than we will reap the grim consequences of our failure to act on programs  which are needed now if we are to prevent disaster later.  
1970-80	1970	Clean air, clean water, open spaces--these should once again be the  birthright of every American. If we act now, they can be.  
1970-81	1970	We still think of air as free. But clean air is not free, and neither is  clean water. The price tag on pollution control is high. Through our years  of past carelessness we incurred a debt to nature, and now that debt is  being called.  
1970-82	1970	The program I shall propose to Congress will be the most comprehensive and  costly program in this field in America's history.  
1970-83	1970	It is not a program for just one year. A year's plan in this field is no  plan at all. This is a time to look ahead not a year, but 5 years or 10  years--whatever time is required to do the job.  
1970-84	1970	I shall propose to this Congress a $10 billion nationwide clean waters  program to put modern municipal waste treatment plants in every place in  America where they are needed to make our waters clean again, and do it  now. We have the industrial capacity, if we begin now, to build them all  within 5 years. This program will get them built within 5 years.  
1970-85	1970	As our cities and suburbs relentlessly expand, those priceless open spaces  needed for recreation areas accessible to their people are swallowed  up--often forever. Unless we preserve these spaces while they are still  available, we will have none to preserve. Therefore, I shall propose new  financing methods for purchasing open space and parklands now, before they  are lost to us.  
1970-86	1970	The automobile is our worst polluter of the air. Adequate control requires  further advances in engine design and fuel composition. We shall intensify  our research, set increasingly strict standards, and strengthen enforcement  procedures--and we shall do it now.  
1970-87	1970	We can no longer afford to consider air and water common property, free to  be abused by anyone without regard to the consequences. Instead, we should  begin now to treat them as scarce resources, which we are no more free to  contaminate than we are free to throw garbage into our neighbor's yard.  
1970-88	1970	This requires comprehensive new regulations. It also requires that, to the  extent possible, the price of goods should be made to include the costs of  producing and disposing of them without damage to the environment.  
1970-89	1970	Now, I realize that the argument is often made that there is a fundamental  contradiction between economic growth and the quality of life, so that to  have one we must forsake the other.  
1970-90	1970	The answer is not to abandon growth, but to redirect it. For example, we  should turn toward ending congestion and eliminating smog the same  reservoir of inventive genius that created them in the first place.  
1970-91	1970	Continued vigorous economic growth provides us with the means to enrich  life itself and to enhance our planet as a place hospitable to man.  
1970-92	1970	Each individual must enlist in this fight if it is to be won.  
1970-93	1970	It has been said that no matter how many national parks and historical  monuments we buy and develop, the truly significant environment for each of  us is that in which we spend 80 percent of our time--in our homes, in our  places of work, the streets over which we travel.  
1970-94	1970	Street litter, rundown parking strips and yards, dilapidated fences, broken  windows, smoking automobiles, dingy working places, all should be the  object of our fresh view.  
1970-95	1970	We have been too tolerant of our surroundings and too willing to leave it  to others to clean up our environment. It is time for those who make  massive demands on society to make some minimal demands on themselves. Each  of us must resolve that each day he will leave his home, his property, the  public places of the city or town a little cleaner, a little better, a  little more pleasant for himself and those around him.  
1970-96	1970	With the help of people we can do anything, and without their help, we can  do nothing. In this spirit, together, we can reclaim our land for ours and  generations to come.  
1970-97	1970	Between now and the year 2000, over 100 million children will be born in  the United States. Where they grow up--and how--will, more than any one  thing, measure the quality of American life in these years ahead.  
1970-98	1970	This should be a warning to us.  
1970-99	1970	For the past 30 years our population has also been growing and shifting.  The result is exemplified in the vast areas of rural America emptying out  of people and of promise--a third of our counties lost population in the  sixties.  
1970-100	1970	The violent and decayed central cities of our great metropolitan complexes  are the most conspicuous area of failure in American life today.  
1970-101	1970	I propose that before these problems become insoluble, the Nation develop a  national growth policy.  
1970-102	1970	In the future, government decisions as to where to build highways, locate  airports, acquire land, or sell land should be made with a clear objective  of aiding a balanced growth for America.  
1970-103	1970	In particular, the Federal Government must be in a position to assist in  the building of new cities and the rebuilding of old ones.  
1970-104	1970	At the same time, we will carry our concern with the quality of life in  America to the farm as well as the suburb, to the village as well as to the  city. What rural America needs most is a new kind of assistance. It needs  to be dealt with, not as a separate nation, but as part of an overall  growth policy for America. We must create a new rural environment which  will not only stem the migration to urban centers, but reverse it. If we  seize our growth as a challenge, we can make the 1970's an historic period  when by conscious choice we transformed our land into what we want it to  become.  
1970-105	1970	America, which has pioneered in the new abundance, and in the new  technology, is called upon today to pioneer in meeting the concerns which  have followed in their wake--in turning the wonders of science to the  service of man.  
1970-106	1970	In the majesty of this great Chamber we hear the echoes of America's  history, of debates that rocked the Union and those that repaired it, of  the summons to war and the search for peace, of the uniting of the people,  the building of a nation.  
1970-107	1970	Those echoes of history remind us of our roots and our strengths.  
1970-108	1970	They remind us also of that special genius of American democracy, which at  one critical turning point after another has led us to spot the new road to  the future and given us the wisdom and the courage to take it.  
1970-109	1970	As I look down that new road which I have tried to map out today, I see a  new America as we celebrate our 200th anniversary 6 years from now.  
1970-110	1970	I see an America in which we have abolished hunger, provided the means for  every family in the Nation to obtain a minimum income, made enormous  progress in providing better housing, faster transportation, improved  health, and superior education.  
1970-111	1970	I see an America in which we have checked inflation, and waged a winning  war against crime.  
1970-112	1970	I see an America in which we have made great strides in stopping the  pollution of our air, cleaning up our water, opening up our parks,  continuing to explore in space.  
1970-113	1970	Most important, I see an America at peace with all the nations of the  world.  
1970-114	1970	This is not an impossible dream. These goals are all within our reach.  
1970-115	1970	In times past, our forefathers had the vision but not the means to achieve  such goals.  
1970-116	1970	Let it not be recorded that we were the first American generation that had  the means but not the vision to make this dream come true.  
1970-117	1970	But let us, above all, recognize a fundamental truth. We can be the best  clothed, best fed, best housed people in the world, enjoying clean air,  clean water, beautiful parks, but we could still be the unhappiest people  in the world without an indefinable spirit--the lift of a driving dream  which has made America, from its beginning, the hope of the world.  
1970-118	1970	Two hundred years ago this was a new nation of 3 million people, weak  militarily, poor economically. But America meant something to the world  then which could not be measured in dollars, something far more important  than military might.  
1970-119	1970	Listen to President Thomas Jefferson in 1802: We act not "for ourselves  alone, but for the whole human race."  
1970-120	1970	We had a spiritual quality then which caught the imagination of millions of  people in the world.  
1970-121	1970	Today, when we are the richest and strongest nation in the world, let it  not be recorded that we lack the moral and spiritual idealism which made us  the hope of the world at the time of our birth.  
1970-122	1970	The demands of us in 1976 are even greater than in 1776.  
1970-123	1970	It is no longer enough to live and let live. Now we must live and help  live.  
1970-124	1970	We need a fresh climate in America, one in which a person can breathe  freely and breathe in freedom.  
1970-125	1970	Our recognition of the truth that wealth and happiness are not the same  thing requires us to measure success or failure by new criteria.  
1970-126	1970	Even more than the programs I have described today, what this Nation needs  is an example from its elected leaders in providing the spiritual and moral  leadership which no programs for material progress can satisfy.  
1970-127	1970	Above all, let us inspire young Americans with a sense of excitement, a  sense of destiny, a sense of involvement, in meeting the challenges we face  in this great period of our history. Only then are they going to have any  sense of satisfaction in their lives.  
1970-128	1970	The greatest privilege an individual can have is to serve in a cause bigger  than himself. We have such a cause.  
1970-129	1970	How we seize the opportunities I have described today will determine not  only our future, but the future of peace and freedom in this world in the  last third of the century.  
1970-130	1970	May God give us the wisdom, the strength and, above all, the idealism to be  worthy of that challenge, so that America can fulfill its destiny of being  the world's best hope for liberty, for opportunity, for progress and peace  for all peoples.  
1971-1	1971	Mr. Speaker, Mr. President, my colleagues in the Congress, our  distinguished guests, my fellow Americans:  
1971-2	1971	As this 92d Congress begins its session, America has lost a great Senator,  and all of us who had the privilege to know him have lost a loyal friend. I  had the privilege of visiting Senator Russell in the hospital just a few  days before he died. He never spoke about himself. He only spoke eloquently  about the need for a strong national defense. In tribute to one of the most  magnificent Americans of all time, I respectfully ask that all those here  will rise in silent prayer for Senator Russell.  
1971-3	1971	Thank you.  
1971-4	1971	Mr. Speaker, before I begin my formal address, I want to use this  opportunity to congratulate all of those who were winners in the rather  spirited contest for leadership positions in the House and the Senate and,  also, to express my condolences to the losers. I know how both of you  feel.  
1971-5	1971	And I particularly want to join with all of the Members of the House and  the Senate as well in congratulating the new Speaker of the United States  Congress.  
1971-6	1971	To those new Members of this House who may have some doubts about the  possibilities for advancement in the years ahead, I would remind you that  the Speaker and I met just 24 years ago in this Chamber as freshmen Members  of the 80th Congress. As you see, we both have come up in the world a bit  since then.  
1971-7	1971	Mr. Speaker, this 92d Congress has a chance to be recorded as the greatest  Congress in America's history.  
1971-8	1971	In these troubled years just past, America has been going through a long  nightmare of war and division, of crime and inflation. Even more deeply, we  have gone through a long, dark night of the American spirit. But now that  night is ending. Now we must let our spirits soar again. Now we are ready  for the lift of a driving dream.  
1971-9	1971	The people of this Nation are eager to get on with the quest for new  greatness. They see challenges, and they are prepared to meet those  challenges. It is for us here to open the doors that will set free again  the real greatness of this Nation--the genius of the American people.  
1971-10	1971	How shall we meet this challenge? How can we truly open the doors, and set  free the full genius of our people?  
1971-11	1971	The way in which the 92d Congress answers these questions will determine  its place in history. More importantly, it can determine this Nation's  place in history as we enter the third century of our independence.  
1971-12	1971	Tonight I shall present to the Congress six great goals. I shall ask not  simply for more new programs in the old framework. I shall ask to change  the framework of government itself---to reform the entire structure of  American government so we can make it again fully responsive to the needs  and the wishes of the American people.  
1971-13	1971	If we act boldly--if we seize this moment and achieve these goals--we can  close the gap between promise and performance in American government. We  can bring together the resources of this Nation and the spirit of the  American people.  
1971-14	1971	In discussing these great goals, I shall deal tonight only with matters on  the domestic side of the Nation's agenda. I shall make a separate report to  the Congress and the Nation next month on developments in foreign policy.  
1971-15	1971	The first of these great goals is already before the Congress.  
1971-16	1971	I urge that the unfinished business of the 91st Congress be made the first  priority business of the 92d Congress.  
1971-17	1971	Over the next 2 weeks, I will call upon Congress to take action on more  than 35 pieces of proposed legislation on which action was not completed  last year.  
1971-18	1971	The most important is welfare reform.  
1971-19	1971	The present welfare system has become a monstrous, consuming outrage--an  outrage against the community, against the taxpayer, and particularly  against the children it is supposed to help.  
1971-20	1971	We may honestly disagree, as we do, on what to do about it. But we can all  agree that we must meet the challenge, not by pouring more money into a bad  program, but by abolishing the present welfare system and adopting a new  one.  
1971-21	1971	So let us place a floor under the income of every family with children in  America--and without those demeaning, soul-stifling affronts to human  dignity that so blight the lives of welfare children today. But let us also  establish an effective work incentive and an effective work requirement.  
1971-22	1971	Let us provide the means by which more can help themselves. This shall be  our goal.  
1971-23	1971	Let us generously help those who are not able to help themselves. But let  us stop helping those who are able to help themselves but refuse to do so.  
1971-24	1971	The second great goal is to achieve what Americans have not enjoyed since  1957--full prosperity in peacetime.  
1971-25	1971	The tide of inflation has turned. The rise in the cost of living, which had  been gathering dangerous momentum in the late sixties, was reduced last  year. Inflation will be further reduced this year.  
1971-26	1971	But as we have moved from runaway inflation toward reasonable price  stability and at the same time as we have been moving from a wartime  economy to a peacetime economy, we have paid a price in increased  unemployment.  
1971-27	1971	We should take no comfort from the fact that the level of unemployment in  this transition from a wartime to a peacetime economy is lower than in any  peacetime year of the sixties.  
1971-28	1971	This is not good enough for the man who is unemployed in the seventies. We  must do better for workers in peacetime and we will do better.  
1971-29	1971	To achieve this, I will submit an expansionary budget this year--one that  will help stimulate the economy and thereby open up new job opportunities  for millions of Americans.  
1971-30	1971	It will be a full employment budget, a budget designed to be in balance if  the economy were operating at its peak potential. By spending as if we were  at full employment, we will help to bring about full employment.  
1971-31	1971	I ask the Congress to accept these expansionary policies--to accept the  concept of a full employment budget. At the same time, I ask the Congress  to cooperate in resisting expenditures that go beyond the limits of the  full employment budget. For as we wage a campaign to bring about a widely  shared prosperity, we must not reignite the fires of inflation and so  undermine that prosperity.  
1971-32	1971	With the stimulus and the discipline of a full employment budget, with the  commitment of the independent Federal Reserve System to provide fully for  the monetary needs of a growing economy, and with a much greater effort on  the part of labor and management to make their wage and price decisions in  the light of the national interest and their own self-interest--then for  the worker, the farmer, the consumer, for Americans everywhere we shall  gain the goal of a new prosperity: more jobs, more income, more profits,  without inflation and without war.  
1971-33	1971	This is a great goal, and one that we can achieve together.  
1971-34	1971	The third great goal is to continue the effort so dramatically begun last  year: to restore and enhance our natural environment.  
1971-35	1971	Building on the foundation laid in the 37-point program that I submitted to  Congress last year, I will propose a strong new set of initiatives to clean  up our air and water, to combat noise, and to preserve and restore our  surroundings.  
1971-36	1971	I will propose programs to make better use of our land, to encourage a  balanced national growth--growth that will revitalize our rural heartland  and enhance the quality of life in America.  
1971-37	1971	And not only to meet today's needs but to anticipate those of tomorrow, I  will put forward the most extensive program ever proposed by a President of  the United States to expand the Nation's parks, recreation areas, open  spaces, in a way that truly brings parks to the people where the people  are. For only if we leave a legacy of parks will the next generation have  parks to enjoy.  
1971-38	1971	As a fourth great goal, I will offer a far-reaching set of proposals for  improving America's health care and making it available more fairly to more  people.  
1971-39	1971	I will propose:  
1971-40	1971	--A program to insure that no American family will be prevented from  obtaining basic medical care by inability to pay.  
1971-41	1971	--I will propose a major increase in and redirection of aid to medical  schools, to greatly increase the number of doctors and other health  personnel.  
1971-42	1971	--Incentives to improve the delivery of health services, to get more  medical care resources into those areas that have not been adequately  served, to make greater use of medical assistants, and to slow the alarming  rise in the costs of medical care.  
1971-43	1971	--New programs to encourage better preventive medicine, by attacking the  causes of disease and injury, and by providing incentives to doctors to  keep people well rather than just to treat them when they are sick.  
1971-44	1971	I will also ask for an appropriation of an extra $100 million to launch an  intensive campaign to find a cure for cancer, and I will ask later for  whatever additional funds can effectively be used. The time has come in  America when the same kind of concentrated effort that split the atom and  took man to the moon should be turned toward conquering this dread disease.  Let us make a total national commitment to achieve this goal.  
1971-45	1971	America has long been the wealthiest nation in the world. Now it is time we  became the healthiest nation in the world.  
1971-46	1971	The fifth great goal is to strengthen and to renew our State and local  governments.  
1971-47	1971	As we approach our 200th anniversary in 1976, we remember that this Nation  launched itself as a loose confederation of separate States, without a  workable central government. At that time, the mark of its leaders' vision  was that they quickly saw the need to balance the separate powers of the  States with a government of central powers.  
1971-48	1971	And so they gave us a constitution of balanced powers, of unity with  diversity--and so clear was their vision that it survives today as the  oldest written constitution still in force in the world.  
1971-49	1971	For almost two centuries since--and dramatically in the 1930's--at those  great turning points when the question has been between the States and the  Federal Government, that question has been resolved in favor of a stronger  central Federal Government.  
1971-50	1971	During this time the Nation grew and the Nation prospered. But one thing  history tells us is that no great movement goes in the same direction  forever. Nations change, they adapt, or they slowly die.  
1971-51	1971	The time has now come in America to reverse the flow of power and resources  from the States and communities to Washington, and start power and  resources flowing back from Washington to the States and communities and,  more important, to the people all across America.  
1971-52	1971	The time has come for a new partnership between the Federal Government and  the States and localities--a partnership in which we entrust the States and  localities with a larger share of the Nation's responsibilities, and in  which we share our Federal revenues with them so that they can meet those  responsibilities.  
1971-53	1971	To achieve this goal, I propose to the Congress tonight that we enact a  plan of revenue sharing historic in scope and bold in concept.  
1971-54	1971	All across America today, States and cities are confronted with a financial  crisis. Some have already been cutting back on essential services---for  example, just recently San Diego and Cleveland cut back on trash  collections. Most are caught between the prospects of bankruptcy on the one  hand and adding to an already crushing tax burden on the other.  
1971-55	1971	As one indication of the rising costs of local government, I discovered the  other day that my home town of Whittier, California--which has a population  of 67,000--has a larger budget for 1971 than the entire Federal budget was  in 1791.  
1971-56	1971	Now the time has come to take a new direction, and once again to introduce  a new and more creative balance to our approach to government.  
1971-57	1971	So let us put the money where the needs are. And let us put the power to  spend it where the people are.  
1971-58	1971	I propose that the Congress make a $16 billion investment in renewing  State and local government. Five billion dollars of this will be in new and  unrestricted funds to be used as the States and localities see fit. The  other $11 billion will be provided by allocating $1 billion of new funds  and converting one-third of the money going to the present narrow-purpose  aid programs into Federal revenue sharing funds for six broad purposes--for  urban development, rural development, education, transportation, job  training, and law enforcement--but with the States and localities making  their own decisions on how it should be spent within each category.  
1971-59	1971	For the next fiscal year, this would increase total Federal aid to the  States and localities more than 25 percent over the present level.  
1971-60	1971	The revenue sharing proposals I send to the Congress will include the  safeguards against discrimination that accompany all other Federal funds  allocated to the States. Neither the President nor the Congress nor the  conscience of this Nation can permit money which comes from all the people  to be used in a way which discriminates against some of the people.  
1971-61	1971	The Federal Government will still have a large and vital role to play in  achieving our national progress. Established functions that are clearly and  essentially Federal in nature will still be performed by the Federal  Government. New functions that need to be sponsored or performed by the  Federal Government--such as those I have urged tonight in welfare and  health--will be added to the Federal agenda. Whenever it makes the best  sense for us to act as a whole nation, the Federal Government should and  will lead the way. But where States or local governments can better do what  needs to be done, let us see that they have the resources to do it there.  
1971-62	1971	Under this plan, the Federal Government will provide the States and  localities with more money and less interference--and by cutting down the  interference the same amount of money will go a lot further.  
1971-63	1971	Let us share our resources.  
1971-64	1971	Let us share them to rescue the States and localities from the brink of  financial crisis.  
1971-65	1971	Let us share them to give homeowners and wage earners a chance to escape  from ever-higher property taxes and sales taxes.  
1971-66	1971	Let us share our resources for two other reasons as well.  
1971-67	1971	The first of these reasons has to do with government itself, and the second  has to do with each of us, with the individual.  
1971-68	1971	Let's face it. Most Americans today are simply fed up with government at  all levels. They will not--and they should not--continue to tolerate the  gap between promise and performance in government.  
1971-69	1971	The fact is that we have made the Federal Government so strong it grows  muscle-bound and the States and localities so weak they approach  impotence.  
1971-70	1971	If we put more power in more places, we can make government more creative  in more places. That way we multiply the number of people with the ability  to make things happen--and we can open the way to a new burst of creative  energy throughout America.  
1971-71	1971	The final reason I urge this historic shift is much more personal, for each  and for every one of us.  
1971-72	1971	As everything seems to have grown bigger and more complex in America, as  the forces that shape our lives seem to have grown more distant and more  impersonal, a great feeling of frustration has crept across this land.  
1971-73	1971	Whether it is the workingman who feels neglected, the black man who feels  oppressed, or the mother concerned about her children, there has been a  growing feeling that "Things are in the saddle, and ride mankind."  
1971-74	1971	Millions of frustrated young Americans today are crying out--asking not  what will government do for me, but what can I do, how can I contribute,  how can I matter?  
1971-75	1971	And so let us answer them. Let us say to them and let us say to all  Americans, "We hear you. We will give you a chance. We are going to give  you a new chance to have more to say about the decisions that affect your  future--a chance to participate in government--because we are going to  provide more centers of power where what you do can make a difference that  you can see and feel in your own life and the life of your whole  community."  
1971-76	1971	The further away government is from people, the stronger government becomes  and the weaker people become. And a nation with a strong government and a  weak people is an empty shell.  
1971-77	1971	I reject the patronizing idea that government in Washington, D.C., is  inevitably more wise, more honest, and more efficient than government at  the local or State level. The honesty and efficiency of government depends  on people. Government at all levels has good people and bad people. And the  way to get more good people into government is to give them more  opportunity to do good things.  
1971-78	1971	The idea that a bureaucratic elite in Washington knows best what is best  for people everywhere and that you cannot trust local governments is really  a contention that you cannot trust people to govern themselves. This notion  is completely foreign to the American experience. Local government is the  government closest to the people, it is most responsive to the individual  person. It is people's government in a far more intimate way than the  Government in Washington can ever be.  
1971-79	1971	People came to America because they wanted to determine their own future  rather than to live in a country where others determined their future for  them.  
1971-80	1971	What this change means is that once again in America we are placing our  trust in people.  
1971-81	1971	I have faith in people. I trust the judgment of people. Let us give the  people of America a chance, a bigger voice in deciding for themselves those  questions that so greatly affect their lives.  
1971-82	1971	The sixth great goal is a complete reform of the Federal Government  itself.  
1971-83	1971	Based on a long and intensive study with the aid of the best advice  obtainable, I have concluded that a sweeping reorganization of the  executive branch is needed if the Government is to keep up with the times  and with the needs of the people.  
1971-84	1971	I propose, therefore, that we reduce the present 12 Cabinet Departments to  eight.  
1971-85	1971	I propose that the Departments of State, Treasury, Defense, and Justice  remain, but that all the other departments be consolidated into four: Human  Resources, Community Development, Natural Resources, and Economic  Development.  
1971-86	1971	Let us look at what these would be:  
1971-87	1971	--First, a department dealing with the concerns of people--as individuals,  as members of a family--a department focused on human needs.  
1971-88	1971	--Second, a department concerned with the community--rural communities and  urban communities--and with all that it takes to make a community function  as a community.  
1971-89	1971	--Third, a department concerned with our physical environment, with the  preservation and balanced use of those great natural resources on which our  Nation depends.  
1971-90	1971	--And fourth, a department concerned with our prosperity--with our jobs,  our businesses, and those many activities that keep our economy running  smoothly and well.  
1971-91	1971	Under this plan, rather than dividing up our departments by narrow  subjects, we would organize them around the great purposes of government.  Rather than scattering responsibility by adding new levels of bureaucracy,  we would focus and concentrate the responsibility for getting problems  solved.  
1971-92	1971	With these four departments, when we have a problem we will know where to  go--and the department will have the authority and the resources to do  something about it.  
1971-93	1971	Over the years we have added departments and created agencies at the  Federal level, each to serve a new constituency, to handle a particular  task--and these have grown and multiplied in what has become a hopeless  confusion of form and function.  
1971-94	1971	The time has come to match our structure to our purposes---to look with a  fresh eye, to organize the Government by conscious, comprehensive design to  meet the new needs of a new era.  
1971-95	1971	One hundred years ago, Abraham Lincoln stood on a battlefield and spoke of  a "government of the people, by the people, for the people." Too often  since then, we have become a nation of the Government, by the Government,  for the Government.  
1971-96	1971	By enacting these reforms, we can renew that principle that Lincoln stated  so simply and so well.  
1971-97	1971	By giving everyone's voice a chance to be heard, we will have government  that truly is of the people.  
1971-98	1971	By creating more centers of meaningful power, more places where decisions  that really count can be made, by giving more people a chance to do  something, we can have government that truly is by the people.  
1971-99	1971	And by setting up a completely modern, functional system of government at  the national level, we in Washington will at last be able to provide  government that is truly for the people.  
1971-100	1971	I realize that what I am asking is that not only the executive branch in  Washington but that even this Congress will have to change by giving up  some of its power.  
1971-101	1971	Change is hard. But without change there can be no progress. And for each  of us the question then becomes, not "Will change cause me inconvenience?"  but "Will change bring progress for America?"  
1971-102	1971	Giving up power is hard. But I would urge all of you, as leaders of this  country, to remember that the truly revered leaders in world history are  those who gave power to people, and not those who took it away.  
1971-103	1971	As we consider these reforms we will be acting, not for the next 2 years or  for the next 10 years, but for the next 100 years.  
1971-104	1971	So let us approach these six great goals with a sense not only of this  moment in history but also of history itself.  
1971-105	1971	Let us act with the willingness to work together and the vision and the  boldness and the courage of those great Americans who met in Philadelphia  almost 190 years ago to write a constitution.  
1971-106	1971	Let us leave a heritage as they did--not just for our children but for  millions yet unborn--of a nation where every American will have a chance  not only to live in peace and to enjoy prosperity and opportunity but to  participate in a system of government where he knows not only his votes but  his ideas count--a system of government which will provide the means for  America to reach heights of achievement undreamed of before.  
1971-107	1971	Those men who met at Philadelphia left a great heritage because they had a  vision--not only of what the Nation was but of what it could become.  
1971-108	1971	As I think of that vision, I recall that America was founded as the land of  the open door--as a haven for the oppressed, a land of opportunity, a place  of refuge, of hope.  
1971-109	1971	When the first settlers opened the door of America three and a half  centuries ago, they came to escape persecution and to find opportunity--and  they left wide the door of welcome for others to follow.  
1971-110	1971	When the Thirteen Colonies declared their independence almost two centuries  ago, they opened the door to a new vision of liberty and of human  fulfillment--not just for an elite but for all.  
1971-111	1971	To the generations that followed, America's was the open door that beckoned  millions from the old world to the new in search of a better life, a freer  life, a fuller life, and in which, by their own decisions, they could shape  their own destinies.  
1971-112	1971	For the black American, the Indian, the Mexican-American, and for those  others in our land who have not had an equal chance, the Nation at last has  begun to confront the need to press open the door of full and equal  opportunity, and of human dignity.  
1971-113	1971	For all Americans, with these changes I have proposed tonight we can open  the door to a new era of opportunity. We can open the door to full and  effective participation in the decisions that affect their lives. We can  open the door to a new partnership among governments at all levels, between  those governments and the people themselves. And by so doing, we can open  wide the doors of human fulfillment for millions of people here in America  now and in the years to come.  
1971-114	1971	In the next few weeks I will spell out in greater detail the way I propose  that we achieve these six great goals. I ask this Congress to be  responsive. If it is, then the 92d Congress, your Congress, our Congress,  at the end of its term, will be able to look back on a record more splendid  than any in our history.  
1971-115	1971	This can be the Congress that helped us end the longest war in the Nation's  history, and end it in a way that will give us at last a genuine chance to  enjoy what we have not had in this century: a full generation of peace.  
1971-116	1971	This can be the Congress that helped achieve an expanding economy, with  full employment and without inflation--and without the deadly stimulus of  war.  
1971-117	1971	This can be the Congress that reformed a welfare system that has robbed  recipients of their dignity and robbed States and cities of their  resources.  
1971-118	1971	This can be the Congress that pressed forward the rescue of our  environment, and established for the next generation an enduring legacy of  parks for the people.  
1971-119	1971	This can be the Congress that launched a new era in American medicine, in  which the quality of medical care was enhanced while the costs were made  less burdensome.  
1971-120	1971	But above all, what this Congress can be remembered for is opening the way  to a new American revolution--a peaceful revolution in which power was  turned back to the people--in which government at all levels was refreshed  and renewed and made truly responsive. This can be a revolution as  profound, as far-reaching, as exciting as that first revolution almost 200  years ago--and it can mean that just 5 years from now America will enter  its third century as a young nation new in spirit, with all the vigor and  the freshness with which it began its first century.  
1971-121	1971	My colleagues in the Congress, these are great goals. They can make the  sessions of this Congress a great moment for America. So let us pledge  together to go forward together--by achieving these goals to give America  the foundation today for a new greatness tomorrow and in all the years to  come, and in so doing to make this the greatest Congress in the history of  this great and good country.  
1972-1	1972	Mr. Speaker, Mr. President, my colleagues in the Congress, our  distinguished guests, my fellow Americans:  
1972-2	1972	Twenty-five years ago I sat here as a freshman Congressman--along with  Speaker Albert--and listened for the first time to the President address  the State of the Union.  
1972-3	1972	I shall never forget that moment. The Senate, the diplomatic corps, the  Supreme Court, the Cabinet entered the Chamber, and then the President of  the United States. As all of you are aware, I had some differences with  President Truman. He had some with me. But I remember that on that day--the  day he addressed that joint session of the newly elected Republican 80th  Congress, he spoke not as a partisan, but as President of all the  people--calling upon the Congress to put aside partisan considerations in  the national interest.  
1972-4	1972	The Greek-Turkish aid program, the Marshall Plan, the great foreign policy  initiatives which have been responsible for avoiding a world war for over  25 years were approved by the 80th Congress, by a bipartisan majority of  which I was proud to be a part.  
1972-5	1972	Nineteen hundred seventy-two is now before us. It holds precious time in  which to accomplish good for the Nation. We must not waste it. I know the  political pressures in this session of the Congress will be great. There  are more candidates for the Presidency in this Chamber today than there  probably have been at any one time in the whole history of the Republic.  And there is an honest difference of opinion, not only between the parties,  but within each party, on some foreign policy issues and on some domestic  policy issues.  
1972-6	1972	However, there are great national problems that are so vital that they  transcend partisanship. So let us have our debates. Let us have our honest  differences. But let us join in keeping the national interest first. Let us  join in making sure that legislation the Nation needs does not become  hostage to the political interests of any party or any person.  
1972-7	1972	There is ample precedent, in this election year, for me to present you with  a huge list of new proposals, knowing full well that there would not be any  possibility of your passing them if you worked night and day.  
1972-8	1972	I shall not do that.  
1972-9	1972	I have presented to the leaders of the Congress today a message of 15,000  words discussing in some detail where the Nation stands and setting forth  specific legislative items on which I have asked the Congress to act. Much  of this is legislation which I proposed in 1969, in 1970, and also in the  first session of this 92d Congress and on which I feel it is essential that  action be completed this year.  
1972-10	1972	I am not presenting proposals which have attractive labels but no hope of  passage. I am presenting only vital programs which are within the capacity  of this Congress to enact, within the capacity of the budget to finance,  and which I believe should be above partisanship--programs which deal with  urgent priorities for the Nation, which should and must be the subject of  bipartisan action by this Congress in the interests of the country in  1972.  
1972-11	1972	When I took the oath of office on the steps of this building just 3 years  ago today, the Nation was ending one of the most tortured decades in its  history.  
1972-12	1972	The 1960's were a time of great progress in many areas. But as we all know,  they were also times of great agony--the agonies of war, of inflation, of  rapidly rising crime, of deteriorating titles, of hopes raised and  disappointed, and of anger and frustration that led finally to violence and  to the worst civil disorder in a century.  
1972-13	1972	I recall these troubles not to point any fingers of blame. The Nation was  so torn in those final years of the sixties that many in both parties  questioned whether America could be governed at all.  
1972-14	1972	The Nation has made significant progress in these first years of the  seventies:  
1972-15	1972	Our cities are no longer engulfed by civil disorders.  
1972-16	1972	Our colleges and universities have again become places of learning instead  of battlegrounds.  
1972-17	1972	A beginning has been made in preserving and protecting our environment.  
1972-18	1972	The rate of increase in crime has been slowed--and here in the District of  Columbia, the one city where the Federal Government has direct  jurisdiction, serious crime in 1971 was actually reduced by 13 percent from  the year before.  
1972-19	1972	Most important, because of the beginnings that have been made, we can say  today that this year 1972 can be the year in which America may make the  greatest progress in 25 years toward achieving our goal of being at peace  with all the nations of the world.  
1972-20	1972	As our involvement in the war in Vietnam comes to an end, we must now go on  to build a generation of peace.  
1972-21	1972	To achieve that goal, we must first face realistically the need to maintain  our defense.  
1972-22	1972	In the past 3 years, we have reduced the burden of arms. For the first time  in 20 years, spending on defense has been brought below spending on human  resources.  
1972-23	1972	As we look to the future, we find encouraging progress in our negotiations  with the Soviet Union on limitation of strategic arms. And looking further  into the future, we hope there can eventually be agreement on the mutual  reduction of arms. But until there is such a mutual agreement, we must  maintain the strength necessary to deter war.  
1972-24	1972	And that is why, because of rising research and development costs, because  of increases in military and civilian pay, because of the need to proceed  with new weapons systems, my budget for the coming fiscal year will provide  for an increase in defense spending.  
1972-25	1972	Strong military defenses are not the enemy of peace; they are the guardians  of peace.  
1972-26	1972	There could be no more misguided set of priorities than one which would  tempt others by weakening America, and thereby endanger the peace of the  world.  
1972-27	1972	In our foreign policy, we have entered a new era. The world has changed  greatly in the 11 years since President John Kennedy said in his Inaugural  Address, "... we shall pay any price, bear any burden, meet any hardship,  support any friend, oppose any foe to assure the survival and the success  of liberty."  
1972-28	1972	Our policy has been carefully and deliberately adjusted to meet the new  realities of the new world we live in. We make today only those commitments  we are able and prepared to meet.  
1972-29	1972	Our commitment to freedom remains strong and unshakable. But others must  bear their share of the burden of defending freedom around the world.  
1972-30	1972	And so this, then, is our policy:  
1972-31	1972	--We will maintain a nuclear deterrent adequate to meet any threat to the  security of the United States or of our allies.  
1972-32	1972	--We will help other nations develop the capability of defending  themselves.  
1972-33	1972	--We will faithfully honor all of our treaty commitments.  
1972-34	1972	--We will act to defend our interests, whenever and wherever they are  threatened anyplace in the world.  
1972-35	1972	--But where our interests or our treaty commitments are not involved, our  role will be limited.  
1972-36	1972	--We will not intervene militarily.  
1972-37	1972	--But we will use our influence to prevent war.  
1972-38	1972	--If war comes, we will use our influence to stop it.  
1972-39	1972	--Once it is over, we will do our share in helping to bind up the wounds of  those who have participated in it.  
1972-40	1972	As you know, I will soon be visiting the People's Republic of China and the  Soviet Union. I go there with no illusions. We have great differences with  both powers. We shall continue to have great differences. But peace depends  on the ability of great powers to live together on the same planet despite  their differences.  
1972-41	1972	We would not be true to our obligation to generations yet unborn if we  failed to seize this moment to do everything in our power to insure that we  will be able to talk about those differences, rather than to fight about  them, in the future.  
1972-42	1972	As we look back over this century, let us, in the highest spirit of  bipartisanship, recognize that we can be proud of our Nation's record in  foreign affairs.  
1972-43	1972	America has given more generously of itself toward maintaining freedom,  preserving peace, alleviating human suffering around the globe, than any  nation has ever done in the history of man.  
1972-44	1972	We have fought four wars in this century, but our power has never been used  to break the peace, only to keep it; never been used to destroy freedom,  only to defend it. We now have within our reach the goal of insuring that  the next generation can be the first generation in this century to be  spared the scourges of war.  
1972-45	1972	Turning to our problems at home, we are making progress toward our goal of  a new prosperity without war.  
1972-46	1972	Industrial production, consumer spending, retail sales, personal income all  have been rising. Total employment, real income are the highest in history.  New home building starts this past year reached the highest level ever.  Business and consumer confidence have both been rising. Interest rates are  down. The rate of inflation is down. We can look with confidence to 1972 as  the year when the back of inflation will be broken.  
1972-47	1972	Now, this a good record, but it is not good enough--not when we still have  an unemployment rate of 6 percent.  
1972-48	1972	It is not enough to point out that this was the rate of the early peacetime  years of the sixties, or that if the more than 2 million men released from  the Armed Forces and defense-related industries were still in their wartime  jobs, unemployment would be far lower.  
1972-49	1972	Our goal in this country is full employment in peacetime. We intend to meet  that goal, and we can.  
1972-50	1972	The Congress has helped to meet that goal by passing our job-creating tax  program last month.  
1972-51	1972	The historic monetary agreements, agreements that we have reached with the  major European nations, Canada, and Japan, will help meet it by providing  new markets for American products, new jobs for American workers.  
1972-52	1972	Our budget will help meet it by being expansionary without being  inflationary--a job-producing budget that will help take up the gap as the  economy expands to full employment.  
1972-53	1972	Our program to raise farm income will help meet it by helping to revitalize  rural America, by giving to America's farmers their fair share of America's  increasing productivity.  
1972-54	1972	We also will help meet our goal of full employment in peacetime with a set  of major initiatives to stimulate more imaginative use of America's great  capacity for technological advance, and to direct it toward improving the  quality of life for every American.  
1972-55	1972	In reaching the moon, we demonstrated what miracles American technology is  capable of achieving. Now the time has come to move more deliberately  toward making full use of that technology here on earth, of harnessing the  wonders of science to the service of man.  
1972-56	1972	I shall soon send to the Congress a special message proposing a new program  of Federal partnership in technological research and development--with  Federal incentives to increase private research, federally supported  research on projects designed to improve our everyday lives in ways that  will range from improving mass transit to developing new systems of  emergency health care that could save thousands of lives annually.  
1972-57	1972	Historically, our superior technology and high productivity have made it  possible for American workers to be the highest paid in the world by far,  and yet for our goods still to compete in world markets.  
1972-58	1972	Now we face a new situation. As other nations move rapidly forward in  technology, the answer to the new competition is not to build a wall around  America, but rather to remain competitive by improving our own technology  still further and by increasing productivity in American industry.  
1972-59	1972	Our new monetary and trade agreements will make it possible for American  goods to compete fairly in the world's markets--but they still must  compete. The new technology program will put to use the skills of many  highly trained Americans, skills that might otherwise be wasted. It will  also meet the growing technological challenge from abroad, and it will thus  help to create new industries, as well as creating more jobs for America's  workers in producing for the world's markets.  
1972-60	1972	This second session of the 92d Congress already has before it more than 90  major Administration proposals which still await action.  
1972-61	1972	I have discussed these in the extensive written message that I have  presented to the Congress today.  
1972-62	1972	They include, among others, our programs to improve life for the aging; to  combat crime and drug abuse; to improve health services and to ensure that  no one will be denied needed health care because of inability to pay; to  protect workers' pension rights; to promote equal opportunity for members  of minorities, and others who have been left behind; to expand consumer  protection; to improve the environment; to revitalize rural America; to  help the cities; to launch new initiatives in education; to improve  transportation, and to put an end to costly labor tie-ups in  transportation.  
1972-63	1972	The west coast dock strike is a case in point. This Nation cannot and will  not tolerate that kind of irresponsible labor tie-up in the future.  
1972-64	1972	The messages also include basic reforms which are essential if our  structure of government is to be adequate in the decades ahead.  
1972-65	1972	They include reform of our wasteful and outmoded welfare  system--substitution of a new system that provides work requirements and  work incentives for those who can help themselves, income support for those  who cannot help themselves, and fairness to the working poor.  
1972-66	1972	They include a $17 billion program of Federal revenue sharing with the  States and localities as an investment in their renewal, an investment also  of faith in the American people.  
1972-67	1972	They also include a sweeping reorganization of the executive branch of the  Federal Government so that it will be more efficient, more responsive, and  able to meet the challenges of the decades ahead.  
1972-68	1972	One year ago, standing in this place, I laid before the opening session of  this Congress six great goals. One of these was welfare reform. That  proposal has been before the Congress now for nearly 2 1/2 years.  
1972-69	1972	My proposals on revenue sharing, government reorganization, health care,  and the environment have now been before the Congress for nearly a year.  Many of the other major proposals that I have referred to have been here  that long or longer.  
1972-70	1972	Now, 1971, we can say, was a year of consideration of these measures. Now  let us join in making 1972 a year of action on them, action by the  Congress, for the Nation and for the people of America.  
1972-71	1972	Now, in addition, there is one pressing need which I have not previously  covered, but which must be placed on the national agenda.  
1972-72	1972	We long have looked in this Nation to the local property tax as the main  source of financing for public primary and secondary education.  
1972-73	1972	As a result, soaring school costs, soaring property tax rates now threaten  both our communities and our schools. They threaten communities because  property taxes, which more than doubled in the 10 years from 1960 to '70,  have become one of the most oppressive and discriminatory of all taxes,  hitting most cruelly at the elderly and the retired; and they threaten  schools, as hard-pressed voters understandably reject new bond issues at  the polls.  
1972-74	1972	The problem has been given even greater urgency by four recent court  decisions, which have held that the conventional method of financing  schools through local property taxes is discriminatory and  unconstitutional.  
1972-75	1972	Nearly 2 years ago, I named a special Presidential commission to study the  problems of school finance, and I also directed the Federal departments to  look into the same problems. We are developing comprehensive proposals to  meet these problems.  
1972-76	1972	This issue involves two complex and interrelated sets of problems: support  of the schools and the basic relationships of Federal, State, and local  governments in any tax reforms.  
1972-77	1972	Under the leadership of the Secretary of the Treasury, we are carefully  reviewing all of the tax aspects, and I have this week enlisted the  Advisory Commission on Intergovernmental Relations in addressing the  intergovernmental relations aspects.  
1972-78	1972	I have asked this bipartisan Commission to review our proposals for Federal  action to cope with the gathering crisis of school finance and property  taxes. Later in the year, when both Commissions have completed their  studies, I shall make my final recommendations for relieving the burden of  property taxes and providing both fair and adequate financing for our  children's education.  
1972-79	1972	These recommendations will be revolutionary. But all these recommendations,  however, will be rooted in one fundamental principle with which there can  be no compromise: Local school boards must have control over local  schools.  
1972-80	1972	As we look ahead over the coming decades, vast new growth and change are  not only certainties, they will be the dominant reality of this world, and  particularly of our life in America.  
1972-81	1972	Surveying the certainty of rapid change, we can be like a fallen rider  caught in the stirrups--or we can sit high in the saddle, the masters of  change, directing it on a course we choose.  
1972-82	1972	The secret of mastering change in today's world is to reach back to old and  proven principles, and to adapt them with imagination and intelligence to  the new realities of a new age.  
1972-83	1972	That is what we have done in the proposals that I have laid before the  Congress. They are rooted in basic principles that are as enduring as human  nature, as robust as the American experience; and they are responsive to  new conditions. Thus they represent a spirit of change that is truly  renewal.  
1972-84	1972	As we look back at those old principles, we find them as timely as they are  timeless.  
1972-85	1972	We believe in independence, and self-reliance, and the creative value of  the competitive spirit.  
1972-86	1972	We believe in full and equal opportunity for all Americans and in the  protection of individual rights and liberties.  
1972-87	1972	We believe in the family as the keystone of the community, and in the  community as the keystone of the Nation.  
1972-88	1972	We believe in compassion toward those in need.  
1972-89	1972	We believe in a system of law, justice, and order as the basis of a  genuinely free society.  
1972-90	1972	We believe that a person should get what he works for--and that those who  can, should work for what they get.  
1972-91	1972	We believe in the capacity of people to make their own decisions in their  own lives, in their own communities--and we believe in their right to make  those decisions.  
1972-92	1972	In applying these principles, we have done so with the full understanding  that what we seek in the seventies, what our quest is, is not merely for  more, but for better for a better quality of life for all Americans.  
1972-93	1972	Thus, for example, we are giving a new measure of attention to cleaning up  our air and water, making our surroundings more attractive. We are  providing broader support for the arts, helping stimulate a deeper  appreciation of what they can contribute to the Nation's activities and to  our individual lives.  
1972-94	1972	But nothing really matters more to the quality of our lives than the way we  treat one another, than our capacity to live respectfully together as a  unified society, with a full, generous regard for the rights of others and  also for the feelings of others.  
1972-95	1972	As we recover from the turmoil and violence of recent years, as we learn  once again to speak with one another instead of shouting at one another, we  are regaining that capacity.  
1972-96	1972	As is customary here, on this occasion, I have been talking about programs.  Programs are important. But even more important than programs is what we  are as a Nation--what we mean as a Nation, to ourselves and to the world.  
1972-97	1972	In New York Harbor stands one of the most famous statues in the world--the  Statue of Liberty, the gift in 1886 of the people of France to the people  of the United States. This statue is more than a landmark; it is a  symbol--a symbol of what America has meant to the world.  
1972-98	1972	It reminds us that what America has meant is not its wealth, and not its  power, but its spirit and purpose--a land that enshrines liberty and  opportunity, and that has held out a hand of welcome to millions in search  of a better and a fuller and, above all, a freer life.  
1972-99	1972	The world's hopes poured into America, along with its people. And those  hopes, those dreams, that have been brought here from every corner of the  world, have become a part of the hope that we now hold out to the world.  
1972-100	1972	Four years from now, America will celebrate the 200th anniversary of its  founding as a Nation. There are those who say that the old Spirit of '76 is  dead--that we no longer have the strength of character, the idealism, the  faith in our founding purposes that that spirit represents.  
1972-101	1972	Those who say this do not know America.  
1972-102	1972	We have been undergoing self-doubts and self-criticism. But these are only  the other side of our growing sensitivity to the persistence of want in the  midst of plenty, of our impatience with the slowness with which age-old  ills are being overcome.  
1972-103	1972	If we were indifferent to the shortcomings of our society, or complacent  about our institutions, or blind to the lingering inequities--then we would  have lost our way.  
1972-104	1972	But the fact that we have those concerns is evidence that our ideals, deep  down, are still strong. Indeed, they remind us that what is really best  about America is its compassion. They remind us that in the final analysis,  America is great not because it is strong, not because it is rich, but  because this is a good country.  
1972-105	1972	Let us reject the narrow visions of those who would tell us that we are  evil because we are not yet perfect, that we are corrupt because we are not  yet pure, that all the sweat and toil and sacrifice that have gone into the  building of America were for naught because the building is not yet done.  
1972-106	1972	Let us see that the path we are traveling is wide, with room in it for all  of us, and that its direction is toward a better Nation and a more peaceful  world.  
1972-107	1972	Never has it mattered more that we go forward together.  
1972-108	1972	Look at this Chamber. The leadership of America is here today--the Supreme  Court, the Cabinet, the Senate, the House of Representatives.  
1972-109	1972	Together, we hold the future of the Nation, and the conscience of the  Nation in our hands.  
1972-110	1972	Because this year is an election year, it will be a time of great  pressure.  
1972-111	1972	If we yield to that pressure and fail to deal seriously with the historic  challenges that we face, we will have failed the trust of millions of  Americans and shaken the confidence they have a right to place in us, in  their Government.  
1972-112	1972	Never has a Congress had a greater opportunity to leave a legacy of a  profound and constructive reform for the Nation than this Congress.  
1972-113	1972	If we succeed in these tasks, there will be credit enough for all--not only  for doing what is right, but doing it in the right way, by rising above  partisan interest to serve the national interest.  
1972-114	1972	And if we fail, more than any one of us, America will be the loser.  
1972-115	1972	That is why my call upon the Congress today is for a high statesmanship, so  that in the years to come Americans will look back and say because it  withstood the intense pressures of a political year, and achieved such  great good for the American people and for the future of this Nation, this  was truly a great Congress.  
1973-1	1973	To the Congress of the United States:  
1973-2	1973	The traditional form of the President's annual report giving "to the  Congress Information of the State of the Union" is a single message or  address. As the affairs and concerns of our Union have multiplied over the  years, however, so too have the subjects that require discussion in State  of the Union Messages.  
1973-3	1973	This year in particular, with so many changes in Government programs under  consideration--and with our very philosophy about the relationship between  the individual and the State at an historic crossroads--a single,  all-embracing State of the Union Message would not appear to be adequate.  
1973-4	1973	I have therefore decided to present my 1973 State of the Union report in  the form of a series of messages during these early weeks of the 93rd  Congress. The purpose of this first message in the series is to give a  concise overview of where we stand as a people today, and to outline some  of the general goals that I believe we should pursue over the next year and  beyond. In coming weeks, I will send to the Congress further State of the  Union reports on specific areas of policy including economic affairs,  natural resources, human resources, community development and foreign and  defense policy.  
1973-5	1973	The new course these messages will outline represents a fresh approach to  Government: an approach that addresses the realities of the 1970s, not  those of the 1930s or of the 1960s. The role of the Federal Government as  we approach our third century of independence should not be to dominate any  facet of American life, but rather to aid and encourage people, communities  and institutions to deal with as many of the difficulties and challenges  facing them as possible, and to help see to it that every American has a  full and equal opportunity to realize his or her potential.  
1973-6	1973	If we were to continue to expand the Federal Government at the rate of the  past several decades, it soon would consume us entirely. The time has come  when we must make clear choices--choices between old programs that set  worthy goals but failed to reach them and new programs that provide a  better way to realize those goals; and choices, too, between competing  programs--all of which may be desirable in themselves but only some of  which we can afford with the finite resources at our command.  
1973-7	1973	Because our resources are not infinite, we also face a critical choice in  1973 between holding the line in Government spending and adopting expensive  programs which will surely force up taxes and refuel inflation.  
1973-8	1973	Finally, it is vital at this time that we restore a greater sense of  responsibility at the State and local level, and among individual  Americans.  
1973-9	1973	WHERE WE STAND  
1973-10	1973	The basic state of our Union today is sound, and full of promise.  
1973-11	1973	We enter 1973 economically strong, militarily secure and, most important of  all, at peace after a long and trying war.  
1973-12	1973	America continues to provide a better and more abundant life for more of  its people than any other nation in the world. We have passed through one  of the most difficult periods in our history without surrendering to  despair and without dishonoring our ideals as a people.  
1973-13	1973	Looking back, there is a lesson in all this for all of us. The lesson is  one that we sometimes had to learn the hard way over the past few years.  But we did learn it. That lesson is that even potentially destructive  forces can be converted into positive forces when we know how to channel  them, and when we use common sense and common decency to create a climate  of mutual respect and goodwill.  
1973-14	1973	By working together and harnessing the forces of nature, Americans have  unlocked some of the great mysteries of the universe.  
1973-15	1973	Men have walked the surface of the moon and soared to new heights of  discovery.  
1973-16	1973	This same spirit of discovery is helping us to conquer disease and  suffering that have plagued our own planet since the dawn of time.  
1973-17	1973	By working together with the leaders of other nations, we have been able to  build a new hope for lasting peace--for a structure of world order in which  common interest outweighs old animosities, and in which a new generation of  the human family can grow up at peace in a changing world.  
1973-18	1973	At home, we have learned that by working together we can create prosperity  without fanning inflation; we can restore order without weakening freedom.  
1973-19	1973	THE CHALLENGES WE FACE  
1973-20	1973	These first years of the 1970s have been good years for America.  
1973-21	1973	Our job--all of us together--is to make 1973 and the years to come even  better ones. I believe that we can. I believe that we can make the years  leading to our Bicentennial the best four years in American history.  
1973-22	1973	But we must never forget that nothing worthwhile can be achieved without  the will to succeed and the strength to sacrifice.  
1973-23	1973	Hard decisions must be made, and we must stick by them.  
1973-24	1973	In the field of foreign policy, we must remember that a strong America--an  America whose word is believed and whose strength is respected--is  essential to continued peace and understanding in the world. The peace with  honor we have achieved in Vietnam has strengthened this basic American  credibility. We must act in such a way in coming years that this  credibility will remain intact, and with it, the world stability of which  it is so indispensable a part.  
1973-25	1973	At home, we must reject the mistaken notion--a notion that has dominated  too much of the public dialogue for too long--that ever bigger Government  is the answer to every problem.  
1973-26	1973	We have learned only too well that heavy taxation and excessive Government  spending are not a cure-all. In too many cases, instead of solving the  problems they were aimed at, they have merely placed an ever heavier burden  on the shoulders of the American taxpayer, in the form of higher taxes and  a higher cost of living. At the same time they have deceived our people  because many of the intended beneficiaries received far less than was  promised, thus undermining public faith in the effectiveness of Government  as a whole.  
1973-27	1973	The time has come for us to draw the line. The time has come for the  responsible leaders of both political parties to take a stand against  overgrown Government and for the American taxpayer. We are not spending the  Federal Government's money, we are spending the taxpayer's money, and it  must be spent in a way which guarantees his money's worth and yields the  fullest possible benefit to the people being helped.  
1973-28	1973	The answer to many of the domestic problems we face is not higher taxes and  more spending. It is less waste, more results and greater freedom for the  individual American to earn a rightful place in his own community--and for  States and localities to address their own needs in their own ways, in the  light of their own priorities.  
1973-29	1973	By giving the people and their locally elected leaders a greater voice  through changes such as revenue sharing, and by saying "no" to excessive  Federal spending and higher taxes, we can help achieve this goal.  
1973-30	1973	COMING MESSAGES  
1973-31	1973	The policies which I will outline to the Congress in the weeks ahead  represent a reaffirmation, not an abdication, of Federal responsibility.  They represent a pragmatic rededication to social compassion and national  excellence, in place of the combination of good intentions and fuzzy  follow-through which too often in the past was thought sufficient.  
1973-32	1973	In the field of economic affairs, our objectives will be to hold down  taxes, to continue controlling inflation, to promote economic growth, to  increase productivity, to encourage foreign trade, to keep farm income  high, to bolster small business, and to promote better labor-management  relations.  
1973-33	1973	In the area of natural resources, my recommendations will include programs  to preserve and enhance the environment, to advance science and technology,  and to assure balanced use of our irreplaceable natural resources.  
1973-34	1973	In developing human resources, I will have recommendations to advance the  Nation's health and education, to improve conditions of people in need, to  carry forward our increasingly successful attacks on crime, drug abuse and  injustice, and to deal with such important areas of special concern as  consumer affairs. We will continue and improve our Nation's efforts to  assist those who have served in the Armed Services in Vietnam through  better job and training opportunities.  
1973-35	1973	We must do a better job in community development--in creating more livable  communities, in which all of our children can grow up with fuller access to  opportunity and greater immunity to the social evils and blights which now  plague so many of our towns and cities. I shall have proposals to help us  achieve this.  
1973-36	1973	I shall also deal with our defense and foreign policies, and with our new  approaches to the role and structure of Government itself.  
1973-37	1973	Considered as a whole, this series of messages will be a blueprint for  modernizing the concept and the functions of American Government to meet  the needs of our people.  
1973-38	1973	Converting it into reality will require a spirit of cooperation and shared  commitment on the part of all branches of the Government, for the goals we  seek are not those of any single party or faction, they are goals for the  betterment of all Americans. As President, I recognize that I cannot do  this job alone. The Congress must help, and I pledge to do my part to  achieve a constructive working relationship with the Congress. My sincere  hope is that the executive and legislative branches can work together in  this great undertaking in a positive spirit of mutual respect and  cooperation.  
1973-39	1973	Working together--the Congress, the President and the people--I am  confident that we can translate these proposals into an action program that  can reform and revitalize American Government and, even more important,  build a better life for all Americans.  
1973-40	1973	The White House,  
1973-41	1973	February 2, 1973.  
1974-1	1974	Mr. Speaker, Mr. President, my colleagues in the Congress, our  distinguished guests, my fellow Americans:  
1974-2	1974	We meet here tonight at a time of great challenge and great opportunities  for America. We meet at a time when we face great problems at home and  abroad that will test the strength of our fiber as a nation. But we also  meet at a time when that fiber has been tested, and it has proved strong.  
1974-3	1974	America is a great and good land, and we are a great and good land because  we are a strong, free, creative people and because America is the single  greatest force for peace anywhere in the world. Today, as always in our  history, we can base our confidence in what the American people will  achieve in the future on the record of what the American people have  achieved in the past.  
1974-4	1974	Tonight, for the first time in 12 years, a President of the United States  can report to the Congress on the state of a Union at peace with every  nation of the world. Because of this, in the 22,000-word message on the  state of the Union that I have just handed to the Speaker of the House and  the President of the Senate, I have been able to deal primarily with the  problems of peace with what we can do here at home in America for the  American people--rather than with the problems of war.  
1974-5	1974	The measures I have outlined in this message set an agenda for truly  significant progress for this Nation and the world in 1974. Before we chart  where we are going, let us see how far we have come.  
1974-6	1974	It was 5 years ago on the steps of this Capitol that I took the oath of  office as your President. In those 5 years, because of the initiatives  undertaken by this Administration, the world has changed. America has  changed. As a result of those changes, America is safer today, more  prosperous today, with greater opportunity for more of its people than ever  before in our history.  
1974-7	1974	Five years ago, America was at war in Southeast Asia. We were locked in  confrontation with the Soviet Union. We were in hostile isolation from a  quarter of the world's people who lived in Mainland China.  
1974-8	1974	Five years ago, our cities were burning and besieged.  
1974-9	1974	Five years ago, our college campuses were a battleground.  
1974-10	1974	Five years ago, crime was increasing at a rate that struck fear across the  Nation.  
1974-11	1974	Five years ago, the spiraling rise in drug addiction was threatening human  and social tragedy of massive proportion, and there was no program to deal  with it.  
1974-12	1974	Five years ago--as young Americans had done for a generation before  that--America's youth still lived under the shadow of the military draft.  
1974-13	1974	Five years ago, there was no national program to preserve our environment.  Day by day, our air was getting dirtier, our water was getting more foul.  
1974-14	1974	And 5 years ago, American agriculture was practically a depressed industry  with 100,000 farm families abandoning the farm every year.  
1974-15	1974	As we look at America today, we find ourselves challenged by new problems.  But we also find a record of progress to confound the professional criers  of doom and prophets of despair. We met the challenges we faced 5 years  ago, and we will be equally confident of meeting those that we face today.  
1974-16	1974	Let us see for a moment how we have met them.  
1974-17	1974	After more than 10 years of military involvement, all of our troops have  returned from Southeast Asia, and they have returned with honor. And we can  be proud of the fact that our courageous prisoners of war, for whom a  dinner was held in Washington tonight, that they came home with their heads  high, on their feet and not on their knees.  
1974-18	1974	In our relations with the Soviet Union, we have turned away from a policy  of confrontation to one of negotiation. For the first time since World War  II, the world's two strongest powers are working together toward peace in  the world. With the People's Republic of China after a generation of  hostile isolation, we have begun a period of peaceful exchange and  expanding trade.  
1974-19	1974	Peace has returned to our cities, to our campuses. The 17-year rise in  crime has been stopped. We can confidently say today that we are finally  beginning to win the war against crime. Right here in this Nation's  Capital--which a few years ago was threatening to become the crime capital  of the world--the rate in crime has been cut in half. A massive campaign  against drug abuse has been organized. And the rate of new heroin  addiction, the most vicious threat of all, is decreasing rather than  increasing.  
1974-20	1974	For the first time in a generation, no young Americans are being drafted  into the armed services of the United States. And for the first time ever,  we have organized a massive national effort to protect the environment. Our  air is getting cleaner, our water is getting purer, and our agriculture,  which was depressed, is prospering. Farm income is up 70 percent, farm  production is setting all-time records, and the billions of dollars the  taxpayers were paying in subsidies has been cut to nearly zero.  
1974-21	1974	Overall, Americans are living more abundantly than ever before, today. More  than 2 1/2 million new jobs were created in the past year alone. That is  the biggest percentage increase in nearly 20 years. People are earning  more. What they earn buys more, more than ever before in history. In the  past 5 years, the average American's real spendable income--that is, what  you really can buy with your income, even after allowing for taxes and  inflation--has increased by 16 percent.  
1974-22	1974	Despite this record of achievement, as we turn to the year ahead we hear  once again the familiar voice of the perennial prophets of gloom telling us  now that because of the need to fight inflation, because of the energy  shortage, America may be headed for a recession.  
1974-23	1974	Let me speak to that issue head on. There will be no recession in the  United States of America. Primarily due to our energy crisis, our economy  is passing through a difficult period. But I pledge to you tonight that the  full powers of this Government will be used to keep America's economy  producing and to protect the jobs of America's workers.  
1974-24	1974	We are engaged in a long and hard fight against inflation. There have been,  and there will be in the future, ups and downs in that fight. But if this  Congress cooperates in our efforts to hold down the cost of Government, we  shall win our fight to hold down the cost of living for the American  people.  
1974-25	1974	As we look back over our history, the years that stand out as the ones of  signal achievement are those in which the Administration and the Congress,  whether one party or the other, working together, had the wisdom and the  foresight to select those particular initiatives for which the Nation was  ready and the moment was right--and in which they seized the moment and  acted.  
1974-26	1974	Looking at the year 1974 which lies before us, there are 10 key areas in  which landmark accomplishments are possible this year in America. If we  make these our national agenda, this is what we will achieve in 1974:  
1974-27	1974	We will break the back of the energy crisis; we will lay the foundation for  our future capacity to meet America's energy needs from America's own  resources.  
1974-28	1974	And we will take another giant stride toward lasting peace in the  world--not only by continuing our policy of negotiation rather than  confrontation where the great powers are concerned but also by helping  toward the achievement of a just and lasting settlement in the Middle  East.  
1974-29	1974	We will check the rise in prices without administering the harsh medicine  of recession, and we will move the economy into a steady period of growth  at a sustainable level.  
1974-30	1974	We will establish a new system that makes high-quality health care  available to every American in a dignified manner and at a price he can  afford.  
1974-31	1974	We will make our States and localities more responsive to the needs of  their own citizens.  
1974-32	1974	We will make a crucial breakthrough toward better transportation in our  towns and in our cities across America.  
1974-33	1974	We will reform our system of Federal aid to education, to provide it when  it is needed, where it is needed, so that it will do the most for those who  need it the most.  
1974-34	1974	We will make an historic beginning on the task of defining and protecting  the right of personal privacy for every American.  
1974-35	1974	And we will start on a new road toward reform of a welfare system that  bleeds the taxpayer, corrodes the community, and demeans those it is  intended to assist.  
1974-36	1974	And together with the other nations of the world, we will establish the  economic framework within which Americans will share more fully in an  expanding worldwide trade and prosperity in the years ahead, with more open  access to both markets and supplies.  
1974-37	1974	In all of the 186 State of the Union messages delivered from this place, in  our history this is the first in which the one priority, the first  priority, is energy. Let me begin by reporting a new development which I  know will be welcome news to every American. As you know, we have committed  ourselves to an active role in helping to achieve a just and durable peace  in the Middle East, on the basis of full implementation of Security Council  Resolutions 242 and 338. The first step in the process is the disengagement  of Egyptian and Israeli forces which is now taking place.  
1974-38	1974	Because of this hopeful development, I can announce tonight that I have  been assured, through my personal contacts with friendly leaders in the  Middle Eastern area, that an urgent meeting will be called in the immediate  future to discuss the lifting of the oil embargo.  
1974-39	1974	This is an encouraging sign. However, it should be clearly understood by  our friends in the Middle East that the United States will not be coerced  on this issue.  
1974-40	1974	Regardless of the outcome of this meeting, the cooperation of the American  people in our energy conservation program has already gone a long way  towards achieving a goal to which I am deeply dedicated. Let us do  everything we can to avoid gasoline rationing in the United States of  America.  
1974-41	1974	Last week, I sent to the Congress a comprehensive special message setting  forth our energy situation, recommending the legislative measures which are  necessary to a program for meeting our needs. If the embargo is lifted,  this will ease the crisis, but it will not mean an end to the energy  shortage in America. Voluntary conservation will continue to be necessary.  And let me take this occasion to pay tribute once again to the splendid  spirit of cooperation the American people have shown which has made  possible our success in meeting this emergency up to this time.  
1974-42	1974	The new legislation I have requested will also remain necessary. Therefore,  I urge again that the energy measures that I have proposed be made the  first priority of this session of the Congress. These measures will require  the oil companies and other energy producers to provide the public with the  necessary information on their supplies. They will prevent the injustice of  windfall profits for a few as a result of the sacrifices of the millions of  Americans. And they will give us the organization, the incentives, the  authorities needed to deal with the short-term emergency and to move toward  meeting our long-term needs.  
1974-43	1974	Just as 1970 was the year in which we began a full-scale effort to protect  the environment, 1974 must be the year in which we organize a full-scale  effort to provide for our energy needs, not only in this decade but through  the 21st century.  
1974-44	1974	As we move toward the celebration 2 years from now of the 200th anniversary  of this Nation's independence, let us press vigorously on toward the goal I  announced last November for Project Independence. Let this be our national  goal: At the end of this decade, in the year 1980, the United States will  not be dependent on any other country for the energy we need to provide our  jobs, to heat our homes, and to keep our transportation moving.  
1974-45	1974	To indicate the size of the Government commitment, to spur energy research  and development, we plan to spend $10 billion in Federal funds over the  next 5 years. That is an enormous amount. But during the same 5 years,  private enterprise will be investing as much as $200 billion--and in 10  years, $500 billion--to develop the new resources, the new technology, the  new capacity America will require for its energy needs in the 1980's. That  is just a measure of the magnitude of the project we are undertaking.  
1974-46	1974	But America performs best when called to its biggest tasks. It can truly be  said that only in America could a task so tremendous be achieved so  quickly, and achieved not by regimentation, but through the effort and  ingenuity of a free people, working in a free system.  
1974-47	1974	Turning now to the rest of the agenda for 1974, the time is at hand this  year to bring comprehensive, high quality health care within the reach of  every American. I shall propose a sweeping new program that will assure  comprehensive health insurance protection to millions of Americans who  cannot now obtain it or afford it, with vastly improved protection against  catastrophic illnesses. This will be a plan that maintains the high  standards of quality in America's health care. And it will not require  additional taxes.  
1974-48	1974	Now, I recognize that other plans have been put forward that would cost $80  billion or even $100 billion and that would put our whole health care  system under the heavy hand of the Federal Government. This is the wrong  approach. This has been tried abroad, and it has failed. It is not the way  we do things here in America. This kind of plan would threaten the quality  of care provided by our whole health care system. The right way is one that  builds on the strengths of the present system and one that does not destroy  those strengths, one based on partnership, not paternalism. Most important  of all, let us keep this as the guiding principle of our health programs.  Government has a great role to play, but we must always make sure that our  doctors will be working for their patients and not for the Federal  Government.  
1974-49	1974	Many of you will recall that in my State of the Union Address 3 years ago,  I commented that "Most Americans today are simply fed up with government at  all levels," and I recommended a sweeping set of proposals to revitalize  State and local governments, to make them more responsive to the people  they serve. I can report to you today that as a result of revenue sharing  passed by the Congress, and other measures, we have made progress toward  that goal. After 40 years of moving power from the States and the  communities to Washington, D.C., we have begun moving power back from  Washington to the States and communities and, most important, to the people  of America.  
1974-50	1974	In this session of the Congress, I believe we are near the breakthrough  point on efforts which I have suggested, proposals to let people themselves  make their own decisions for their own communities and, in particular, on  those to provide broad new flexibility in Federal aid for community  development, for economic development, for education. And I look forward to  working with the Congress, with members of both parties in resolving  whatever remaining differences we have in this legislation so that we can  make available nearly $5 1/2 billion to our States and localities to use  not for what a Federal bureaucrat may want, but for what their own people  in those communities want. The decision should be theirs.  
1974-51	1974	I think all of us recognize that the energy crisis has given new urgency to  the need to improve public transportation, not only in our cities but in  rural areas as well. The program I have proposed this year will give  communities not only more money but also more freedom to balance their own  transportation needs. It will mark the strongest Federal commitment ever to  the improvement of mass transit as an essential element of the improvement  of life in our towns and cities.  
1974-52	1974	One goal on which all Americans agree is that our children should have the  very best education this great Nation can provide.  
1974-53	1974	In a special message last week, I recommended a number of important new  measures that can make 1974 a year of truly significant advances for our  schools and for the children they serve. If the Congress will act on these  proposals, more flexible funding will enable each Federal dollar to meet  better the particular need of each particular school district. Advance  funding will give school authorities a chance to make each year's plans,  knowing ahead of time what Federal funds they are going to receive. Special  targeting will give special help to the truly disadvantaged among our  people. College students faced with rising costs for their education will  be able to draw on an expanded program of loans and grants. These advances  are a needed investment in America's most precious resource, our next  generation. And I urge the Congress to act on this legislation in 1974.  
1974-54	1974	One measure of a truly free society is the vigor with which it protects the  liberties of its individual citizens. As technology has advanced in  America, it has increasingly encroached on one of those liberties--what I  term the right of personal privacy. Modern information systems, data banks,  credit records, mailing list abuses, electronic snooping, the collection of  personal data for one purpose that may be used for another--all these have  left millions of Americans deeply concerned by the privacy they cherish.  
1974-55	1974	And the time has come, therefore, for a major initiative to define the  nature and extent of the basic rights of privacy and to erect new  safeguards to ensure that those rights are respected.  
1974-56	1974	I shall launch such an effort this year at the highest levels of the  Administration, and I look forward again to working with this Congress in  establishing a new set of standards that respect the legitimate needs of  society, but that also recognize personal privacy as a cardinal principle  of American liberty.  
1974-57	1974	Many of those in this Chamber tonight will recall that it was 3 years ago  that I termed the Nation's welfare system "a monstrous, consuming  outrage--an outrage against the community, against the taxpayer, and  particularly against the children that it is supposed to help."  
1974-58	1974	That system is still an outrage. By improving its administration, we have  been able to reduce some of the abuses. As a result, last year, for the  first time in 18 years, there has been a halt in the growth of the welfare  caseload. But as a system, our welfare program still needs reform as  urgently today as it did when I first proposed in 1969 that we completely  replace it with a different system.  
1974-59	1974	In these final 3 years of my Administration, I urge the Congress to join me  in mounting a major new effort to replace the discredited present welfare  system with one that works, one that is fair to those who need help or  cannot help themselves, fair to the community, and fair to the taxpayer.  And let us have as our goal that there will be no Government program which  makes it more profitable to go on welfare than to go to work.  
1974-60	1974	I recognize that from the debates that have taken place within the Congress  over the past 3 years on this program that we cannot expect enactment  overnight of a new reform. But I do propose that the Congress and the  Administration together make this the year in which we discuss, debate, and  shape such a reform so that it can be enacted as quickly as possible.  
1974-61	1974	America's own prosperity in the years ahead depends on our sharing fully  and equitably in an expanding world prosperity. Historic negotiations will  take place this year that will enable us to ensure fair treatment in  international markets for American workers, American farmers, American  investors, and American consumers.  
1974-62	1974	It is vital that the authorities contained in the trade bill I submitted to  the Congress be enacted so that the United States can negotiate flexibly  and vigorously on behalf of American interests. These negotiations can  usher in a new era of international trade that not only increases the  prosperity of all nations but also strengthens the peace among all  nations.  
1974-63	1974	In the past 5 years, we have made more progress toward a lasting structure  of peace in the world than in any comparable time in the Nation's history.  We could not have made that progress if we had not maintained the military  strength of America. Thomas Jefferson once observed that the price of  liberty is eternal vigilance. By the same token, and for the same reason,  in today's world the price of peace is a strong defense as far as the  United States is concerned.  
1974-64	1974	In the past 5 years, we have steadily reduced the burden of national  defense as a share of the budget, bringing it down from 44 percent in 1969  to 29 percent in the current year. We have cut our military manpower over  the past 5 years by more than a third, from 3.5 million to 2.2 million.  
1974-65	1974	In the coming year, however, increased expenditures will be needed. They  will be needed to assure the continued readiness of our military forces, to  preserve present force levels in the face of rising costs, and to give us  the military strength we must have if our security is to be maintained and  if our initiatives for peace are to succeed.  
1974-66	1974	The question is not whether we can afford to maintain the necessary  strength of our defense, the question is whether we can afford not to  maintain it, and the answer to that question is no. We must never allow  America to become the second strongest nation in the world.  
1974-67	1974	I do not say this with any sense of belligerence, because I recognize the  fact that is recognized around the world. America's military strength has  always been maintained to keep the peace, never to break it. It has always  been used to defend freedom, never to destroy it. The world's peace, as  well as our own, depends on our remaining as strong as we need to be as  long as we need to be.  
1974-68	1974	In this year 1974, we will be negotiating with the Soviet Union to place  further limits on strategic nuclear arms. Together with our allies, we will  be negotiating with the nations of the Warsaw Pact on mutual and balanced  reduction of forces in Europe. And we will continue our efforts to promote  peaceful economic development in Latin America, in Africa, in Asia. We will  press for full compliance with the peace accords that brought an end to  American fighting in Indochina, including particularly a provision that  promised the fullest possible accounting for those Americans who are  missing in action.  
1974-69	1974	And having in mind the energy crisis to which I have referred to earlier,  we will be working with the other nations of the world toward agreement on  means by which oil supplies can be assured at reasonable prices on a stable  basis in a fair way to the consuming and producing nations alike.  
1974-70	1974	All of these are steps toward a future in which the world's peace and  prosperity, and ours as well as a result, are made more secure.  
1974-71	1974	Throughout the 5 years that I have served as your President, I have had one  overriding aim, and that was to establish a new structure of peace in the  world that can free future generations of the scourge of war. I can  understand that others may have different priorities. This has been and  this will remain my first priority and the chief legacy I hope to leave  from the 8 years of my Presidency.  
1974-72	1974	This does not mean that we shall not have other priorities, because as we  strengthen the peace, we must also continue each year a steady  strengthening of our society here at home. Our conscience requires it, our  interests require it, and we must insist upon it.  
1974-73	1974	As we create more jobs, as we build a better health care system, as we  improve our education, as we develop new sources of energy, as we provide  more abundantly for the elderly and the poor, as we strengthen the system  of private enterprise that produces our prosperity--as we do all of this  and even more, we solidify those essential bonds that hold us together as  a nation.  
1974-74	1974	Even more importantly, we advance what in the final analysis government in  America is all about.  
1974-75	1974	What it is all about is more freedom, more security, a better life for each  one of the 211 million people that live in this land.  
1974-76	1974	We cannot afford to neglect progress at home while pursuing peace abroad.  But neither can we afford to neglect peace abroad while pursuing progress  at home. With a stable peace, all is possible, but without peace, nothing  is possible.  
1974-77	1974	In the written message that I have just delivered to the Speaker and to the  President of the Senate, I commented that one of the continuing challenges  facing us in the legislative process is that of the timing and pacing of  our initiatives, selecting each year among many worthy projects those that  are ripe for action at that time.  
1974-78	1974	What is true in terms of our domestic initiatives is true also in the  world. This period we now are in, in the world--and I say this as one who  has seen so much of the world, not only in these past 5 years but going  back over many years--we are in a period which presents a juncture of  historic forces unique in this century. They provide an opportunity we may  never have again to create a structure of peace solid enough to last a  lifetime and more, not just peace in our time but peace in our children's  time as well. It is on the way we respond to this opportunity, more than  anything else, that history will judge whether we in America have met our  responsibility. And I am confident we will meet that great historic  responsibility which is ours today.  
1974-79	1974	It was 27 years ago that John F. Kennedy and I sat in this Chamber, as  freshmen Congressmen, hearing our first State of the Union address  delivered by Harry Truman. I know from my talks with him, as members of the  Labor Committee on which we both served, that neither of us then even  dreamed that either one or both might eventually be standing in this place  that I now stand in now and that he once stood in, before me. It may well  be that one of the freshmen Members of the 93d Congress, one of you out  there, will deliver his own State of the Union message 27 years from now,  in the year 2001.  
1974-80	1974	Well, whichever one it is, I want you to be able to look back with pride  and to say that your first years here were great years and recall that you  were here in this 93d Congress when America ended its longest war and began  its longest peace.  
1974-81	1974	Mr. Speaker, and Mr. President, and my distinguished colleagues and our  guests: I would like to add a personal word with regard to an issue that  has been of great concern to all Americans over the past year. I refer, of  course, to the investigations of the so-called Watergate affair. As you  know, I have provided to the Special Prosecutor voluntarily a great deal of  material. I believe that I have provided all the material that he needs to  conclude his investigations and to proceed to prosecute the guilty and to  clear the innocent.  
1974-82	1974	I believe the time has come to bring that investigation and the other  investigations of this matter to an end. One year of Watergate is enough.  
1974-83	1974	And the time has come, my colleagues, for not only the Executive, the  President, but the Members of Congress, for all of us to join together in  devoting our full energies to these great issues that I have discussed  tonight which involve the welfare of all of the American people in so many  different ways, as well as the peace of the world.  
1974-84	1974	I recognize that the House Judiciary Committee has a special responsibility  in this area, and I want to indicate on this occasion that I will cooperate  with the Judiciary Committee in its investigation. I will cooperate so that  it can conclude its investigation, make its decision, and I will cooperate  in any way that I consider consistent with my responsibilities to the  Office of the Presidency of the United States.  
1974-85	1974	There is only one limitation. I will follow the precedent that has been  followed by and defended by every President from George Washington to  Lyndon B. Johnson of never doing anything that weakens the Office of the  President of the United States or impairs the ability of the Presidents of  the future to make the great decisions that are so essential to this Nation  and the world.  
1974-86	1974	Another point I should like to make very briefly: Like every Member of the  House and Senate assembled here tonight, I was elected to the office that I  hold. And like every Member of the House and Senate, when I was elected to  that office, I knew that I was elected for the purpose of doing a job and  doing it as well as I possibly can. And I want you to know that I have no  intention whatever of ever walking away from the job that the people  elected me to do for the people of the United States.  
1974-87	1974	Now, needless to say, it would be understatement if I were not to admit  that the year 1973 was not a very easy year for me personally or for my  family. And as I have already indicated, the year 1974 presents very great  and serious problems, as very great and serious opportunities are also  presented.  
1974-88	1974	But my colleagues, this I believe: With the help of God, who has blessed  this land so richly, with the cooperation of the Congress, and with the  support of the American people, we can and we will make the year 1974 a  year of unprecedented progress toward our goal of building a structure of  lasting peace in the world and a new prosperity without war in the United  States of America.  
1975-1	1975	Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and  distinguished guests:  
1975-2	1975	Twenty-six years ago, a freshman Congressman, a young fellow with lots of  idealism who was out to change the world, stood before Sam Rayburn in the  well of the House and solemnly swore to the same oath that all of you took  yesterday--an unforgettable experience, and I congratulate you all.  
1975-3	1975	Two days later, that same freshman stood at the back of this great  Chamber--over there someplace--as President Truman, all charged up by his  single-handed election victory, reported as the Constitution requires on  the state of the Union.  
1975-4	1975	When the bipartisan applause stopped, President Truman said, "I am happy to  report to this 81st Congress that the state of the Union is good. Our  Nation is better able than ever before to meet the needs of the American  people, and to give them their fair chance in the pursuit of happiness.  [It] is foremost among the nations of the world in the search for peace."  
1975-5	1975	Today, that freshman Member from Michigan stands where Mr. Truman  stood, and I must say to you that the state of the Union is not good:  
1975-6	1975	Millions of Americans are out of work.  
1975-7	1975	Recession and inflation are eroding the money of millions more.  
1975-8	1975	Prices are too high, and sales are too slow.  
1975-9	1975	This year's Federal deficit will be about $30 billion; next year's probably  $45 billion.  
1975-10	1975	The national debt will rise to over $500 billion.  
1975-11	1975	Our plant capacity and productivity are not increasing fast enough.  
1975-12	1975	We depend on others for essential energy.  
1975-13	1975	Some people question their Government's ability to make hard decisions and  stick with them; they expect Washington politics as usual.  
1975-14	1975	Yet, what President Truman said on January 5, 1949, is even more true in  1975. We are better able to meet our people's needs. All Americans do have  a fairer chance to pursue happiness. Not only are we still the foremost  nation in the pursuit of peace but today's prospects of attaining it are  infinitely brighter.  
1975-15	1975	There were 59 million Americans employed at the start of 1949; now there  are more than 85 million Americans who have jobs. In comparable dollars,  the average income of the American family has doubled during the past 26  years.  
1975-16	1975	Now, I want to speak very bluntly. I've got bad news, and I don't expect  much, if any, applause. The American people want action, and it will take  both the Congress and the President to give them what they want. Progress  and solutions can be achieved, and they will be achieved.  
1975-17	1975	My message today is not intended to address all of the complex needs of  America. I will send separate messages making specific recommendations for  domestic legislation, such as the extension of general revenue sharing and  the Voting Rights Act.  
1975-18	1975	The moment has come to move in a new direction. We can do this by  fashioning a new partnership between the Congress on the one hand, the  White House on the other, and the people we both represent.  
1975-19	1975	Let us mobilize the most powerful and most creative industrial nation that  ever existed on this Earth to put all our people to work. The emphasis on  our economic efforts must now shift from inflation to jobs.  
1975-20	1975	To bolster business and industry and to create new jobs, I propose a 1-year  tax reduction of $16 billion. Three-quarters would go to individuals and  one-quarter to promote business investment.  
1975-21	1975	This cash rebate to individuals amounts to 12 percent of 1974 tax  payments--a total cut of $12 billion, with a maximum of $1,000 per return.  
1975-22	1975	I call on the Congress to act by April 1. If you do--and I hope you  will--the Treasury can send the first check for half of the rebate in May  and the second by September.  
1975-23	1975	The other one-fourth of the cut, about $4 billion, will go to business,  including farms, to promote expansion and to create more jobs. The 1-year  reduction for businesses would be in the form of a liberalized investment  tax credit increasing the rate to 12 percent for all businesses.  
1975-24	1975	This tax cut does not include the more fundamental reforms needed in our  tax system. But it points us in the right direction--allowing taxpayers  rather than the Government to spend their pay.  
1975-25	1975	Cutting taxes now is essential if we are to turn the economy around. A tax  cut offers the best hope of creating more jobs. Unfortunately, it will  increase the size of the budget deficit. Therefore, it is more important  than ever that we take steps to control the growth of Federal  expenditures.  
1975-26	1975	Part of our trouble is that we have been self-indulgent. For decades, we  have been voting ever-increasing levels of Government benefits, and now the  bill has come due. We have been adding so many new programs that the size  and the growth of the Federal budget has taken on a life of its own.  
1975-27	1975	One characteristic of these programs is that their cost increases  automatically every year because the number of people eligible for most of  the benefits increases every year. When these programs are enacted, there  is no dollar amount set. No one knows what they will cost. All we know is  that whatever they cost last year, they will cost more next year.  
1975-28	1975	It is a question of simple arithmetic. Unless we check the excessive growth  of Federal expenditures or impose on ourselves matching increases in taxes,  we will continue to run huge inflationary deficits in the Federal budget.  
1975-29	1975	If we project the current built-in momentum of Federal spending through the  next 15 years, State, Federal, and local government expenditures could  easily comprise half of our gross national product. This compares with less  than a third in 1975.  
1975-30	1975	I have just concluded the process of preparing the budget submissions for  fiscal year 1976. In that budget, I will propose legislation to restrain  the growth of a number of existing programs. I have also concluded that no  new spending programs can be initiated this year, except for energy.  Further, I will not hesitate to veto any new spending programs adopted by  the Congress.  
1975-31	1975	As an additional step toward putting the Federal Government's house in  order, I recommend a 5-percent limit on Federal pay increases in 1975. In  all Government programs tied to the Consumer Price Index--including social  security, civil service and military retirement pay, and food stamps--I  also propose a 1-year maximum increase of 5 percent.  
1975-32	1975	None of these recommended ceiling limitations, over which Congress has  final authority, are easy to propose, because in most cases they involve  anticipated payments to many, many deserving people. Nonetheless, it must  be done. I must emphasize that I am not asking to eliminate, to reduce, to  freeze these payments. I am merely recommending that we slow down the rate  at which these payments increase and these programs grow.  
1975-33	1975	Only a reduction in the growth of spending can keep Federal borrowing down  and reduce the damage to the private sector from high interest rates. Only  a reduction in spending can make it possible for the Federal Reserve System  to avoid an inflationary growth in the money supply and thus restore  balance to our economy. A major reduction in the growth of Federal spending  can help dispel the uncertainty that so many feel about our economy and put  us on the way to curing our economic ills.  
1975-34	1975	If we don't act to slow down the rate of increase in Federal spending, the  United States Treasury will be legally obligated to spend more than $360  billion in fiscal year 1976, even if no new programs are enacted. These are  not matters of conjecture or prediction, but again, a matter of simple  arithmetic. The size of these numbers and their implications for our  everyday life and the health of our economic system are shocking.  
1975-35	1975	I submitted to the last Congress a list of budget deferrals and  rescissions. There will be more cuts recommended in the budget that I will  submit. Even so, the level of outlays for fiscal year 1976 is still much,  much too high. Not only is it too high for this year but the decisions we  make now will inevitably have a major and growing impact on expenditure  levels in future years. I think this is a very fundamental issue that we,  the Congress and I, must jointly solve.  
1975-36	1975	Economic disruptions we and others are experiencing stem in part from the  fact that the world price of petroleum has quadrupled in the last year. But  in all honesty, we cannot put all of the blame on the oil-exporting  nations. We, the United States, are not blameless. Our growing dependence  upon foreign sources has been adding to our vulnerability for years and  years, and we did nothing to prepare ourselves for such an event as the  embargo of 1973.  
1975-37	1975	During the 1960's, this country had a surplus capacity of crude oil which  we were able to make available to our trading partners whenever there was a  disruption of supply. This surplus capacity enabled us to influence both  supplies and prices of crude oil throughout the world. Our excess capacity  neutralized any effort at establishing an effective cartel, and thus the  rest of the world was assured of adequate supplies of oil at reasonable  prices.  
1975-38	1975	By 1970, our surplus capacity had vanished, and as a consequence, the  latent power of the oil cartel could emerge in full force. Europe and  Japan, both heavily dependent on imported oil, now struggle to keep their  economies in balance. Even the United States, our country, which is far  more self-sufficient than most other industrial countries, has been .put  under serious pressure.  
1975-39	1975	I am proposing a program which will begin to restore our country's surplus  capacity in total energy. In this way, we will be able to assure ourselves  reliable and adequate energy and help foster a new world energy stability  for other major consuming nations.  
1975-40	1975	But this Nation and, in fact, the world must face the prospect of energy  difficulties between now and 1985. This program will impose burdens on all  of us with the aim of reducing our consumption of energy and increasing our  production. Great attention has been paid to the considerations of  fairness, and I can assure you that the burdens will not fall more harshly  on those less able to bear them.  
1975-41	1975	I am recommending a plan to make us invulnerable to cutoffs of foreign oil.  It will require sacrifices, but it--and this is most important--it will  work.  
1975-42	1975	I have set the following national energy goals to assure that our future is  as secure and as productive as our past:  
1975-43	1975	First, we must reduce oil imports by 1 million barrels per day by the end  of this year and by 2 million barrels per day by the end of 1977.  
1975-44	1975	Second, we must end vulnerability to economic disruption by foreign  suppliers by 1985.  
1975-45	1975	Third, we must develop our energy technology and resources so that the  United States has the ability to supply a significant share of the energy  needs of the free world by the end of this century.  
1975-46	1975	To attain these objectives, we need immediate action to cut imports.  Unfortunately, in the short term there are only a limited number of actions  which can increase domestic supply. I will press for all of them.  
1975-47	1975	I urge quick action on the necessary legislation to allow commercial  production at the Elk Hills, California, Naval Petroleum Reserve. In order  that we make greater use of domestic coal resources, I am submitting  amendments to the Energy Supply and Environmental Coordination Act which  will greatly increase the number of powerplants that can be promptly  converted to coal.  
1975-48	1975	Obviously, voluntary conservation continues to be essential, but tougher  programs are needed--and needed now. Therefore, I am using Presidential  powers to raise the fee on all imported crude oil and petroleum products.  The crude oil fee level will be increased $1 per barrel on February 1, by  $2 per barrel on March 1, and by $3 per barrel on April 1. I will take  actions to reduce undue hardships on any geographical region. The foregoing  are interim administrative actions. They will be rescinded when the broader  but necessary legislation is enacted.  
1975-49	1975	To that end, I am requesting the Congress to act within 90 days on a more  comprehensive energy tax program. It includes: excise taxes and import fees  totaling $2 per barrel on product imports and on all crude oil;  deregulation of new natural gas and enactment of a natural gas excise tax.  
1975-50	1975	I plan to take Presidential initiative to decontrol the price of domestic  crude oil on April 1. I urge the Congress to enact a windfall profits tax  by that date to ensure that oil producers do not profit unduly.  
1975-51	1975	The sooner Congress acts, the more effective the oil conservation program  will be and the quicker the Federal revenues can be returned to our  people.  
1975-52	1975	I am prepared to use Presidential authority to limit imports, as necessary,  to guarantee success.  
1975-53	1975	I want you to know that before deciding on my energy conservation program,  I considered rationing and higher gasoline taxes as alternatives. In my  judgment, neither would achieve the desired results and both would produce  unacceptable inequities.  
1975-54	1975	A massive program must be initiated to increase energy supply, to cut  demand, and provide new standby emergency programs to achieve the  independence we want by 1985. The largest part of increased oil production  must come from new frontier areas on the Outer Continental Shelf and from  the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this  Administration to move ahead with exploration, leasing, and production on  those frontier areas of the Outer Continental Shelf where the environmental  risks are acceptable.  
1975-55	1975	Use of our most abundant domestic resource--coal--is severely limited. We  must strike a reasonable compromise on environmental concerns with coal. I  am submitting Clean Air amendments which will allow greater coal use  without sacrificing clean air goals.  
1975-56	1975	I vetoed the strip mining legislation passed by the last Congress. With  appropriate changes, I will sign a revised version when it comes to the  White House.  
1975-57	1975	I am proposing a number of actions to energize our nuclear power program. I  will submit legislation to expedite nuclear leasing and the  rapid selection of sites.  
1975-58	1975	In recent months, utilities have cancelled or postponed over 60 percent of  planned nuclear expansion and 30 percent of planned additions to  non-nuclear capacity. Financing problems for that industry are worsening. I  am therefore recommending that the 1-year investment tax credit of 12  percent be extended an additional 2 years to specifically speed the  construction of powerplants that do not use natural gas or oil. I am also  submitting proposals for selective reform of State utility commission  regulations.  
1975-59	1975	To provide the critical stability for our domestic energy production in the  face of world price uncertainty, I will request legislation to authorize  and require tariffs, import quotas, or price floors to protect our energy  prices at levels which will achieve energy independence.  
1975-60	1975	Increasing energy supplies is not enough. We must take additional steps to  cut long-term consumption. I therefore propose to the Congress: legislation  to make thermal efficiency standards mandatory for all new buildings in the  United States; a new tax credit of up to $150 for those homeowners who  install insulation equipment; the establishment of an energy conservation  program to help low-income families purchase insulation supplies;  legislation to modify and defer automotive pollution standards for 5 years,  which will enable us to improve automobile gas mileage by 40 percent by  1980.  
1975-61	1975	These proposals and actions, cumulatively, can reduce our dependence on  foreign energy supplies from 3 to 5 million barrels per day by 1985. To  make the United States invulnerable to foreign disruption, I propose  standby emergency legislation and a strategic storage program of 1 billion  barrels of oil for domestic needs and 300 million barrels for national  defense purposes.  
1975-62	1975	I will ask for the funds needed for energy research and development  activities. I have established a goal of 1 million barrels of synthetic  fuels and shale oil production per day by 1985 together with an incentive  program to achieve it.  
1975-63	1975	I have a very deep belief in America's capabilities. Within the next 10  years, my program envisions: 200 major nuclear powerplants; 250 major new  coal mines; 150 major coal-fired powerplants; 30 major new refineries; 20  major new synthetic fuel plants; the drilling of many thousands of new  oil wells; the insulation of 18 million homes; and the manufacturing  and the sale of millions of new automobiles, trucks, and buses that  use much less fuel.  
1975-64	1975	I happen to believe that we can do it. In another crisis--the one in 1942  President Franklin D. Roosevelt said this country would build 60,000  military aircraft. By 1943, production in that program had reached  125,000 aircraft annually. They did it then. We can do it now.  
1975-65	1975	If the Congress and the American people will work with me to attain these  targets, they will be achieved and will be surpassed. From adversity, let  us seize opportunity. Revenues of some $30 billion from higher energy taxes  designed to encourage conservation must be refunded to the American people  in a manner which corrects distortions in our tax system wrought by  inflation.  
1975-66	1975	People have been pushed into higher tax brackets by inflation, with  consequent reduction in their actual spending power. Business taxes are  similarly distorted because inflation exaggerates reported profits,  resulting in excessive taxes.  
1975-67	1975	Accordingly, I propose that future individual income taxes be reduced by  $16.5 billion. This will be done by raising the low-income allowance and  reducing tax rates. This continuing tax cut will primarily benefit lower-  and middle-income taxpayers.  
1975-68	1975	For example, a typical family of four with a gross income of $5,600 now  pays $185 in Federal income taxes. Under this tax cut plan, they would pay  nothing. A family of four with a gross income of $12,500 now pays $1,260 in  Federal taxes. My proposal reduces that total by $300. Families grossing  $20,000 would receive a reduction of $210.  
1975-69	1975	Those with the very lowest incomes, who can least afford higher costs, must  also be compensated. I propose a payment of $80 to every person 18 years of  age and older in that very limited category.  
1975-70	1975	State and local governments will receive $2 billion in additional revenue  sharing to offset their increased energy costs.  
1975-71	1975	To offset inflationary distortions and to generate more economic activity,  the corporate tax rate will be reduced from 48 percent to 42 percent.  
1975-72	1975	Now let me turn, if I might, to the international dimension of the present  crisis. At no time in our peacetime history has the state of the Nation  depended more heavily on the state of the world. And seldom, if ever, has  the state of the world depended more heavily on the state of our Nation.  
1975-73	1975	The economic distress is global. We will not solve it at home unless we  help to remedy the profound economic dislocation abroad. World trade and  monetary structure provides markets, energy, food, and vital raw  materials--for all nations. This international system is now in jeopardy.  
1975-74	1975	This Nation can be proud of significant achievements in recent years in  solving problems and crises. The Berlin agreement, the SALT agreements, our  new relationship with China, the unprecedented efforts in the Middle East  are immensely encouraging. But the world is not free from crisis. In a  world of 150 nations, where nuclear technology is proliferating and  regional conflicts continue, international security cannot be taken for  granted.  
1975-75	1975	So, let there be no mistake about it: International cooperation is a vital  factor of our lives today. This is not a moment for the American people to  turn inward. More than ever before, our own well-being depends on America's  determination and America's leadership in the whole wide world.  
1975-76	1975	We are a great Nation--spiritually, politically, militarily,  diplomatically, and economically. America's commitment to international  security has sustained the safety of allies and friends in many areas--in  the Middle East, in Europe, and in Asia. Our turning away would unleash new  instabilities, new dangers around the globe, which, in turn, would threaten  our own security.  
1975-77	1975	At the end of World War II, we turned a similar challenge into an historic  opportunity and, I might add, an historic achievement. An old order was in  disarray; political and economic institutions were shattered. In that  period, this Nation and its partners built new institutions, new mechanisms  of mutual support and cooperation. Today, as then, we face an historic  opportunity. If we act imaginatively and boldly, as we acted then, this  period will in retrospect be seen as one of the great creative moments of  our Nation's history. The whole world is watching to see how we respond.  
1975-78	1975	A resurgent American economy would do more to restore the confidence of the  world in its own future than anything else we can do. The program that this  Congress passes can demonstrate to the world that we have started to put  our own house in order. If we can show that this Nation is able and willing  to help other nations meet the common challenge, it can demonstrate that  the United States will fulfill its responsibilities as a leader among  nations.  
1975-79	1975	Quite frankly, at stake is the future of industrialized democracies, which  have perceived their destiny in common and sustained it in common for 30  years.  
1975-80	1975	The developing nations are also at a turning point. The poorest nations see  their hopes of feeding their hungry and developing their societies  shattered by the economic crisis. The long-term economic future for the  producers of raw materials also depends on cooperative solutions.  
1975-81	1975	Our relations with the Communist countries are a basic factor of the world  environment. We must seek to build a long-term basis for coexistence. We  will stand by our principles. We will stand by our interests. We will act  firmly when challenged. The kind of a world we want depends on a broad  policy of creating mutual incentives for restraint and for cooperation.  
1975-82	1975	As we move forward to meet our global challenges and opportunities, we must  have the tools to do the job.  
1975-83	1975	Our military forces are strong and ready. This military strength deters  aggression against our allies, stabilizes our relations with former  adversaries, and protects our homeland. Fully adequate conventional and  strategic forces cost many, many billions, but these dollars are sound  insurance for our safety and for a more peaceful world.  
1975-84	1975	Military strength alone is not sufficient. Effective diplomacy is also  essential in preventing conflict, in building world understanding. The  Vladivostok negotiations with the Soviet Union represent a major step in  moderating strategic arms competition. My recent discussions with the  leaders of the Atlantic community, Japan, and South Korea have contributed  to meeting the common challenge.  
1975-85	1975	But we have serious problems before us that require cooperation between the  President and the Congress. By the Constitution and tradition, the  execution of foreign policy is the responsibility of the President.  
1975-86	1975	In recent years, under the stress of the Vietnam war, legislative  restrictions on the President's ability to execute foreign policy and  military decisions have proliferated. As a Member of the Congress, I  opposed some and I approved others. As President, I welcome the advice and  cooperation of the House and the Senate.  
1975-87	1975	But if our foreign policy is to be successful, we cannot rigidly restrict  in legislation the ability of the President to act. The conduct of  negotiations is ill-suited to such limitations. Legislative restrictions,  intended for the best motives and purposes, can have the opposite result,  as we have seen most recently in our trade relations with the Soviet  Union.  
1975-88	1975	For my part, I pledge this Administration will act in the closest  consultation with the Congress as we face delicate situations and troubled  times throughout the globe.  
1975-89	1975	When I became President only 5 months ago, I promised the last Congress a  policy of communication, conciliation, compromise, and cooperation. I renew  that pledge to the new Members of this Congress.  
1975-90	1975	Let me sum it up. America needs a new direction, which I have sought to  chart here today--a change of course which will: put the unemployed back to  work; increase real income and production; restrain the growth of Federal  Government spending; achieve energy independence; and advance the cause of  world understanding.  
1975-91	1975	We have the ability. We have the know-how. In partnership with the American  people, we will achieve these objectives.  
1975-92	1975	As our 200th anniversary approaches, we owe it to ourselves and to  posterity to rebuild our political and economic strength. Let us make  America once again and for centuries more to come what it has so long  been--a stronghold and a beacon-light of liberty for the whole world.  
1975-93	1975	Thank you.  
1976-1	1976	Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and  distinguished guests:  
1976-2	1976	As we begin our Bicentennial, America is still one of the youngest nations  in recorded history. Long before our forefathers came to these shores, men  and women had been struggling on this planet to forge a better life for  themselves and their families.  
1976-3	1976	In man's long, upward march from savagery and slavery--throughout the  nearly 2,000 years of the Christian calendar, the nearly 6,000 years of  Jewish reckoning--there have been many deep, terrifying valleys, but also  many bright and towering peaks.  
1976-4	1976	One peak stands highest in the ranges of human history. One example shines  forth of a people uniting to produce abundance and to share the good life  fairly and with freedom. One union holds out the promise of justice and  opportunity for every citizen: That union is the United States of America.  
1976-5	1976	We have not remade paradise on Earth. We know perfection will not be found  here. But think for a minute how far we have come in 200 years.  
1976-6	1976	We came from many roots, and we have many branches. Yet all Americans  across the eight generations that separate us from the stirring deeds of  1776, those who know no other homeland and those who just found refuge  among our shores, say in unison:  
1976-7	1976	I am proud of America, and I am proud to be an American. Life will be a  little better here for my children than for me. I believe this not because  I am told to believe it, but because life has been better for me than it  was for my father and my mother. I know it will be better for my children  because my hands, my brains, my voice, and my vote can help make it  happen.  
1976-8	1976	It has happened here in America. It has happened to you and to me.  Government exists to create and preserve conditions in which people can  translate their ideas into practical reality. In the best of times, much is  lost in translation. But we try. Sometimes we have tried and failed. Always  we have had the best of intentions.  
1976-9	1976	But in the recent past, we sometimes forgot the sound principles that  guided us through most of our history. We wanted to accomplish great things  and solve age-old problems. And we became overconfident of our abilities.  We tried to be a policeman abroad and the indulgent parent here at home.  
1976-10	1976	We thought we could transform the country through massive national  programs, but often the programs did not work. Too often they only made  things worse. In our rush to accomplish great deeds quickly, we trampled on  sound principles of restraint and endangered the rights of individuals. We  unbalanced our economic system by the huge and unprecedented growth of  Federal expenditures and borrowing. And we were not totally honest with  ourselves about how much these programs would cost and how we would pay for  them. Finally, we shifted our emphasis from defense to domestic problems  while our adversaries continued a massive buildup of arms.  
1976-11	1976	The time has now come for a fundamentally different approach for a new  realism that is true to the great principles upon which this Nation was  founded.  
1976-12	1976	We must introduce a new balance to our economy--a balance that favors not  only sound, active government but also a much more vigorous, healthy  economy that can create new jobs and hold down prices.  
1976-13	1976	We must introduce a new balance in the relationship between the individual  and the government--a balance that favors greater individual freedom and  self-reliance.  
1976-14	1976	We must strike a new balance in our system of federalism--a balance that  favors greater responsibility and freedom for the leaders of our State and  local governments.  
1976-15	1976	We must introduce a new balance between the spending on domestic programs  and spending on defense--a balance that ensures we will fully meet our  obligation to the needy while also protecting our security in a world that  is still hostile to freedom.  
1976-16	1976	And in all that we do, we must be more honest with the American people,  promising them no more than we can deliver and delivering all that we  promise.  
1976-17	1976	The genius of America has been its incredible ability to improve the lives  of its citizens through a unique combination of governmental and free  citizen activity.  
1976-18	1976	History and experience tells us that moral progress cannot come in  comfortable and in complacent times, but out of trial and out of confusion.  Tom Paine aroused the troubled Americans of 1776 to stand up to the times  that try men's souls because the harder the conflict, the more glorious the  triumph.  
1976-19	1976	Just a year ago I reported that the state of the Union was not good.  Tonight, I report that the state of our Union is better--in many ways a lot  better--but still not good enough.  
1976-20	1976	To paraphrase Tom Paine, 1975 was not a year for summer soldiers and  sunshine patriots. It was a year of fears and alarms and of dire  forecasts--most of which never happened and won't happen.  
1976-21	1976	As you recall, the year 1975 opened with rancor and with bitterness.  Political misdeeds of the past had neither been forgotten nor forgiven. The  longest, most divisive war in our history was winding toward an unhappy  conclusion. Many feared that the end of that foreign war of men and  machines meant the beginning of a domestic war of recrimination and  reprisal. Friends and adversaries abroad were asking whether America had  lost its nerve. Finally, our economy was ravaged by inflation--inflation  that was plunging us into the worst recession in four decades. At the same  time, Americans became increasingly alienated from big institutions. They  were steadily losing confidence, not just in big government but in big  business, big labor, and big education, among others. Ours was a troubled  land.  
1976-22	1976	And so, 1975 was a year of hard decisions, difficult compromises, and a new  realism that taught us something important about America. It brought back a  needed measure of common sense, steadfastness, and self-discipline.  
1976-23	1976	Americans did not panic or demand instant but useless cures. In all  sectors, people met their difficult problems with the restraint and with  responsibility worthy of their great heritage.  
1976-24	1976	Add up the separate pieces of progress in 1975, subtract the setbacks, and  the sum total shows that we are not only headed in a new direction, a  direction which I proposed 12 months ago, but it turned out to be the right  direction.  
1976-25	1976	It is the right direction because it follows the truly revolutionary  American concept of 1776, which holds that in a free society the making of  public policy and successful problem-solving involves much more than  government. It involves a full partnership among all branches and all  levels of government, private institutions, and individual citizens.  
1976-26	1976	Common sense tells me to stick to that steady course.  
1976-27	1976	Take the state of our economy. Last January, most things were rapidly  getting worse. This January, most things are slowly but surely getting  better.  
1976-28	1976	The worst recession since World War II turned around in April. The best  cost-of-living news of the past year is that double-digit inflation of 12  percent or higher was cut almost in half. The worst--unemployment remains  far too high.  
1976-29	1976	Today, nearly 1,700,000 more Americans are working than at the bottom of  the recession. At year's end, people were again being hired much faster  than they were being laid off.  
1976-30	1976	Yet, let's be honest. Many Americans have not yet felt these changes in  their daily lives. They still see prices going up far too fast, and they  still know the fear of unemployment.  
1976-31	1976	We are also a growing nation. We need more and more jobs every year.  Today's economy has produced over 85 million jobs for Americans, but we  need a lot more jobs, especially for the young.  
1976-32	1976	My first objective is to have sound economic growth without inflation.  
1976-33	1976	We all know from recent experience what runaway inflation does to ruin  every other worthy purpose. We are slowing it. We must stop it cold.  
1976-34	1976	For many Americans, the way to a healthy, noninflationary economy has  become increasingly apparent. The Government must stop spending so much and  stop borrowing so much of our money. More money must remain in private  hands where it will do the most good. To hold down the cost of living, we  must hold down the cost of government.  
1976-35	1976	In the past decade, the Federal budget has been growing at an average rate  of over 10 percent a year. The budget I am submitting Wednesday cuts this  rate of growth in half. I have kept my promise to submit a budget for the  next fiscal year of $395 billion. In fact, it is $394.2 billion.  
1976-36	1976	By holding down the growth of Federal spending, we can afford additional  tax cuts and return to the people who pay taxes more decisionmaking power  over their own lives.  
1976-37	1976	Last month I signed legislation to extend the 1975 tax reductions for the  first 6 months of this year. I now propose that effective July 1, 1976, we  give our taxpayers a tax cut of approximately $10 billion more than  Congress agreed to in December.  
1976-38	1976	My broader tax reduction would mean that for a family of four making  $15,000 a year, there will be $227 more in take-home pay annually.  Hardworking Americans caught in the middle can really use that kind of  extra cash.  
1976-39	1976	My recommendations for a firm restraint on the growth of Federal spending  and for greater tax reduction are simple and straightforward. For every  dollar saved in cutting the growth in the Federal budget, we can have an  added dollar of Federal tax reduction.  
1976-40	1976	We can achieve a balanced budget by 1979 if we have the courage and the  wisdom to continue to reduce the growth of Federal spending.  
1976-41	1976	One test of a healthy economy is a job for every American who wants to  work. Government--our kind of government--cannot create that many jobs. But  the Federal Government can create conditions and incentives for private  business and industry to make more and more jobs.  
1976-42	1976	Five out of six jobs in this country are in private business and in  industry. Common sense tells us this is the place to look for more jobs and  to find them faster. I mean real, rewarding, permanent jobs.  
1976-43	1976	To achieve this we must offer the American people greater incentives to  invest in the future. My tax proposals are a major step in that direction.  To supplement these proposals, I ask that Congress enact changes in Federal  tax laws that will speed up plant expansion and the purchase of new  equipment. My recommendations will concentrate this job-creation tax  incentive in areas where the unemployment rate now runs over 7 percent.  Legislation to get this started must be approved at the earliest possible  date.  
1976-44	1976	Within the strict budget total that I will recommend for the coming year, I  will ask for additional housing assistance for 500,000 families. These  programs will expand housing opportunities, spur construction, and help to  house moderate- and low-income families.  
1976-45	1976	We had a disappointing year in the housing industry in 1975. But with lower  interest rates and available mortgage money, we can have a healthy recovery  in 1976.  
1976-46	1976	A necessary condition of a healthy economy is freedom from the petty  tyranny of massive government regulation. We are wasting literally millions  of working hours costing billions of taxpayers' and consumers' dollars  because of bureaucratic redtape. The American farmer, who now feeds 215  million Americans, but also millions worldwide, has shown how much more he  can produce without the shackles of government control.  
1976-47	1976	Now, we badly need reforms in other key areas in our economy: the airlines,  trucking, railroads, and financial institutions. I have submitted concrete  plans in each of these areas, not to help this or that industry, but to  foster competition and to bring prices down for the consumer.  
1976-48	1976	This administration, in addition, will strictly enforce the Federal  antitrust laws for the very same purposes.  
1976-49	1976	Taking a longer look at America's future, there can be neither sustained  growth nor more jobs unless we continue to have an assured supply of energy  to run our economy. Domestic production of oil and gas is still declining.  Our dependence on foreign oil at high prices is still too great, draining  jobs and dollars away from our own economy at the rate of $125 per year for  every American.  
1976-50	1976	Last month, I signed a compromise national energy bill which enacts a part  of my comprehensive energy independence program. This legislation was late,  not the complete answer to energy independence, but still a start in the  right direction.  
1976-51	1976	I again urge the Congress to move ahead immediately on the remainder of my  energy proposals to make America invulnerable to the foreign oil cartel.  
1976-52	1976	My proposals, as all of you know, would reduce domestic natural gas  shortages; allow production from Federal petroleum reserves; stimulate  effective conservation, including revitalization of our railroads and the  expansion of our urban transportation systems; develop more and cleaner  energy from our vast coal resources; expedite clean and safe nuclear power  production; create a new national energy independence authority to  stimulate vital energy investment; and accelerate development of technology  to capture energy from the Sun and the Earth for this and future  generations.  
1976-53	1976	Also, I ask, for the sake of future generations, that we preserve the  family farm and family-owned small business. Both strengthen America and  give stability to our economy. I will propose estate tax changes so that  family businesses and family farms can be handed down from generation to  generation without having to be sold to pay taxes.  
1976-54	1976	I propose tax changes to encourage people to invest in America's future,  and their own, through a plan that gives moderate-income families income  tax benefits if they make long-term investments in common stock in American  companies.  
1976-55	1976	The Federal Government must and will respond to clear-cut national  needs--for this and future generations.  
1976-56	1976	Hospital and medical services in America are among the best in the world,  but the cost of a serious and extended illness can quickly wipe out a  family's lifetime savings. Increasing health costs are of deep concern to  all and a powerful force pushing up the cost of living. The burden of  catastrophic illness can be borne by very few in our society. We must  eliminate this fear from every family.  
1976-57	1976	I propose catastrophic health insurance for everybody covered by Medicare.  To finance this added protection, fees for short-term care will go up  somewhat, but nobody after reaching age 65 will have to pay more than $500  a year for covered hospital or nursing home care, nor more than $250 for 1  year's doctor bills.  
1976-58	1976	We cannot realistically afford federally dictated national health insurance  providing full coverage for all 215 million Americans. The experience of  other countries raises questions about the quality as well as the cost of  such plans. But I do envision the day when we may use the private health  insurance system to offer more middle-income families high quality health  services at prices they can afford and shield them also from their  catastrophic illnesses.  
1976-59	1976	Using resources now available, I propose improving the Medicare and other  Federal health programs to help those who really need protection--older  people and the poor. To help States and local governments give better  health care to the poor, I propose that we combine 16 existing Federal  programs, including Medicaid, into a single $10 billion Federal grant.  
1976-60	1976	Funds would be divided among States under a new formula which provides a  larger share of Federal money to those States that have a larger share of  low-income families.  
1976-61	1976	I will take further steps to improve the quality of medical and hospital  care for those who have served in our Armed Forces.  
1976-62	1976	Now let me speak about social security. Our Federal social security system  for people who have worked and contributed to it for all their lives is a  vital part of our economic system. Its value is no longer debatable. In my  budget for fiscal year 1977, I am recommending that the full cost-of-living  increases in the social security benefits be paid during the coming year.  
1976-63	1976	But I am concerned about the integrity of our Social Security Trust Fund  that enables people--those retired and those still working who will  retire--to count on this source of retirement income. Younger workers watch  their deductions rise and wonder if they will be adequately protected in  the future. We must meet this challenge head on. Simple arithmetic warns  all of us that the Social Security Trust Fund is headed for trouble. Unless  we act soon to make sure the fund takes in as much as it pays out, there  will be no security for old or for young.  
1976-64	1976	I must, therefore, recommend a three-tenths of 1 percent increase in both  employer and employee social security taxes effective January 1, 1977. This  will cost each covered employee less than 1 extra dollar a week and will  ensure the integrity of the trust fund.  
1976-65	1976	As we rebuild our economy, we have a continuing responsibility to provide a  temporary cushion to the unemployed. At my request, the Congress enacted  two extensions and two expansions in unemployment insurance which helped  those who were jobless during 1975. These programs will continue in 1976.  
1976-66	1976	In my fiscal year 1977 budget, I am also requesting funds to continue  proven job training and employment opportunity programs for millions of  other Americans.  
1976-67	1976	Compassion and a sense of community--two of America's greatest strengths  throughout our history--tell us we must take care of our neighbors who  cannot take care of themselves. The host of Federal programs in this field  reflect our generosity as a people.  
1976-68	1976	But everyone realizes that when it comes to welfare, government at all  levels is not doing the job well. Too many of our welfare programs are  inequitable and invite abuse. Too many of our welfare programs have  problems from beginning to end. Worse, we are wasting badly needed  resources without reaching many of the truly needy.  
1976-69	1976	Complex welfare programs cannot be reformed overnight. Surely we cannot  simply dump welfare into the laps of the 50 States, their local taxpayers,  or their private charities, and just walk away from it. Nor is it the right  time for massive and sweeping changes while we are still recovering from  the recession.  
1976-70	1976	Nevertheless, there are still plenty of improvements that we can make. I  will ask Congress for Presidential authority to tighten up the rules for  eligibility and benefits.  
1976-71	1976	Last year I twice sought long overdue reform of the scandal-riddled food  stamp program. This year I say again: Let's give food stamps to those most  in need. Let's not give any to those who don't need them.  
1976-72	1976	Protecting the life and property of the citizen at home is the  responsibility of all public officials, but is primarily the job of local  and State law enforcement authorities.  
1976-73	1976	Americans have always found the very thought of a Federal police force  repugnant, and so do I. But there are proper ways in which we can help to  insure domestic tranquility as the Constitution charges us.  
1976-74	1976	My recommendations on how to control violent crime were submitted to the  Congress last June with strong emphasis on protecting the innocent victims  of crime. To keep a convicted criminal from committing more crimes, we must  put him in prison so he cannot harm more law-abiding citizens. To be  effective, this punishment must be swift and it must be certain.  
1976-75	1976	Too often, criminals are not sent to prison after conviction but are  allowed to return to the streets. Some judges are reluctant to send  convicted criminals to prison because of inadequate facilities. To  alleviate this problem at the Federal level, my new budget proposes the  construction of four new Federal facilities.  
1976-76	1976	To speed Federal justice, I propose an increase this year in the United  States attorneys prosecuting Federal crimes and the reinforcement of the  number of United States marshals. Additional Federal judges are needed, as  recommended by me and the Judicial Conference.  
1976-77	1976	Another major threat to every American's person and property is the  criminal carrying a handgun. The way to cut down on the criminal use of  guns is not to take guns away from the law-abiding citizen, but to impose  mandatory sentences for crimes in which a gun is used, make it harder to  obtain cheap guns for criminal purposes, and concentrate gun control  enforcement in highcrime areas.  
1976-78	1976	My budget recommends 500 additional Federal agents in the 11 largest  metropolitan high-crime areas to help local authorities stop criminals from  selling and using handguns.  
1976-79	1976	The sale of hard drugs is tragically on the increase again. I have directed  all agencies of the Federal Government to step up law enforcement efforts  against those who deal in drugs. In 1975, I am glad to report, Federal  agents seized substantially more heroin coming into our country than in  1974.  
1976-80	1976	As President, I have talked personally with the leaders of Mexico,  Colombia, and Turkey to urge greater efforts by their Governments to  control effectively the production and shipment of hard drugs.  
1976-81	1976	I recommended months ago that the Congress enact mandatory fixed sentences  for persons convicted of Federal crimes involving the sale of hard drugs.  Hard drugs, we all know, degrade the spirit as they destroy the body of  their users.  
1976-82	1976	It is unrealistic and misleading to hold out the hope that the Federal  Government can move into every neighborhood and clean up crime. Under the  Constitution, the greatest responsibility for curbing crime lies with State  and local authorities. They are the frontline fighters in the war against  crime.  
1976-83	1976	There are definite ways in which the Federal Government can help them. I  will propose in the new budget that Congress authorize almost $7 billion  over the next 5 years to assist State and local governments to protect the  safety and property of all their citizens.  
1976-84	1976	As President, I pledge the strict enforcement of Federal laws and--by  example, support, and leadership--to help State and local authorities  enforce their laws. Together, we must protect the victims of crime and  ensure domestic tranquility.  
1976-85	1976	Last year I strongly recommended a 5-year extension of the existing revenue  sharing legislation, which thus far has provided $23 1/2 billion to help  State and local units of government solve problems at home. This program  has been effective with decisionmaking transferred from the Federal  Government to locally elected officials. Congress must act this year, or  State and local units of government will have to drop programs or raise  local taxes.  
1976-86	1976	Including my health care program reforms, I propose to consolidate some 59  separate Federal programs and provide flexible Federal dollar grants to  help States, cities, and local agencies in such important areas as  education, child nutrition, and social services. This flexible system will  do the job better and do it closer to home.  
1976-87	1976	The protection of the lives and property of Americans from foreign enemies  is one of my primary responsibilities as President.  
1976-88	1976	In a world of instant communications and intercontinental ballistic  missiles, in a world economy that is global and interdependent, our  relations with other nations become more, not less, important to the lives  of Americans.  
1976-89	1976	America has had a unique role in the world since the day of our  independence 200 years ago. And ever since the end of World War II, we have  borne--successfully--a heavy responsibility for ensuring a stable world  order and hope for human progress.  
1976-90	1976	Today, the state of our foreign policy is sound and strong. We are at  peace, and I will do all in my power to keep it that way.  
1976-91	1976	Our military forces are capable and ready. Our military power is without  equal, and I intend to keep it that way.  
1976-92	1976	Our principal alliances with the industrial democracies of the Atlantic  community and Japan have never been more solid.  
1976-93	1976	A further agreement to limit the strategic arms race may be achieved.  
1976-94	1976	We have an improving relationship with China, the world's most populous  nation.  
1976-95	1976	The key elements for peace among the nations of the Middle East now exist.  Our traditional friendships in Latin America, Africa, and Asia continue.  
1976-96	1976	We have taken the role of leadership in launching a serious and hopeful  dialog between the industrial world and the developing world.  
1976-97	1976	We have helped to achieve significant reform of the international monetary  system.  
1976-98	1976	We should be proud of what America, what our country, has accomplished in  these areas, and I believe the American people are.  
1976-99	1976	The American people have heard too much about how terrible our mistakes,  how evil our deeds, and how misguided our purposes. The American people  know better.  
1976-100	1976	The truth is we are the world's greatest democracy. We remain the symbol of  man's aspiration for liberty and well-being. We are the embodiment of hope  for progress.  
1976-101	1976	I say it is time we quit downgrading ourselves as a nation. Of course, it  is our responsibility to learn the right lesson from past mistakes. It is  our duty to see that they never happen again. But our greater duty is to  look to the future. The world's troubles will not go away.  
1976-102	1976	The American people want strong and effective international and defense  policies. In our constitutional system, these policies should reflect  consultation and accommodation between the President and the Congress. But  in the final analysis, as the framers of our Constitution knew from hard  experience, the foreign relations of the United States can be conducted  effectively only if there is strong central direction that allows  flexibility of action. That responsibility clearly rests with the  President.  
1976-103	1976	I pledge to the American people policies which seek a secure, just, and  peaceful world. I pledge to the Congress to work with you to that end.  
1976-104	1976	We must not face a future in which we can no longer help our friends, such  as Angola, even in limited and carefully controlled ways. We must not lose  all capacity to respond short of military intervention.  
1976-105	1976	Some hasty actions of the Congress during the past year--most recently in  respect to Angola--were, in my view, very shortsighted. Unfortunately, they  are still very much on the minds of our allies and our adversaries.  
1976-106	1976	A strong defense posture gives weight to our values and our views in  international negotiations. It assures the vigor of our alliances. And it  sustains our efforts to promote settlements of international conflicts.  Only from a position of strength can we negotiate a balanced agreement to  limit the growth of nuclear arms. Only a balanced agreement will serve our  interests and minimize the threat of nuclear confrontation.  
1976-107	1976	The defense budget I will submit to the Congress for fiscal year 1977 will  show an essential increase over the current year. It provides for real  growth in purchasing power over this year's defense budget, which includes  the cost of the all-volunteer force.  
1976-108	1976	We are continuing to make economies to enhance the efficiency of our  military forces. But the budget I will submit represents the necessity of  American strength for the real world in which we live.  
1976-109	1976	As conflict and rivalry persist in the world, our United States  intelligence capabilities must be the best in the world.  
1976-110	1976	The crippling of our foreign intelligence services increases the danger of  American involvement in direct armed conflict. Our adversaries are  encouraged to attempt new adventures while our own ability to monitor  events and to influence events short of military action is undermined.  Without effective intelligence capability, the United States stands  blindfolded and hobbled.  
1976-111	1976	In the near future, I will take actions to reform and strengthen our  intelligence community. I ask for your positive cooperation. It is time to  go beyond sensationalism and ensure an effective, responsible, and  responsive intelligence capability.  
1976-112	1976	Tonight I have spoken about our problems at home and abroad. I have  recommended policies that will meet the challenge of our third century. I  have no doubt that our Union will endure, better, stronger, and with more  individual freedom. We can see forward only dimly--1 year, 5 years, a  generation perhaps. Like our forefathers, we know that if we meet the  challenges of our own time with a common sense of purpose and conviction,  if we remain true to our Constitution and to our ideals, then we can know  that the future will be better than the past.  
1976-113	1976	I see America today crossing a threshold, not just because it is our  Bicentennial but because we have been tested in adversity. We have taken a  new look at what we want to be and what we want our Nation to become.  
1976-114	1976	I see America resurgent, certain once again that life will be better for  our children than it is for us, seeking strength that cannot be counted in  megatons and riches that cannot be eroded by inflation.  
1976-115	1976	I see these United States of America moving forward as before toward a more  perfect Union where the government serves and the people rule.  
1976-116	1976	We will not make this happen simply by making speeches, good or bad, yours  or mine, but by hard work and hard decisions made with courage and with  common sense.  
1976-117	1976	I have heard many inspiring Presidential speeches, but the words I remember  best were spoken by Dwight D. Eisenhower. "America is not good because it  is great," the President said. "America is great because it is good."  
1976-118	1976	President Eisenhower was raised in a poor but religious home in the heart  of America. His simple words echoed President Lincoln's eloquent testament  that "right makes might." And Lincoln in turn evoked the silent image of  George Washington kneeling in prayer at Valley Forge.  
1976-119	1976	So, all these magic memories which link eight generations of Americans are  summed up in the inscription just above me. How many times have we seen it?  "In God We Trust."  
1976-120	1976	Let us engrave it now in each of our hearts as we begin our Bicentennial.  
1977-1	1977	Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and  distinguished guests:  
1977-2	1977	In accordance with the Constitution, I come before you once again to report  on the state of the Union.  
1977-3	1977	This report will be my last--maybe--[laughter]--but for the Union it is  only the first of such reports in our third century of independence, the  close of which none of us will ever see. We can be confident, however, that  100 years from now a freely elected President will come before a freely  elected Congress chosen to renew our great Republic's pledge to the  Government of the people, by the people, and for the people.  
1977-4	1977	For my part I pray the third century we are beginning will bring to all  Americans, our children and their children's children, a greater measure of  individual equality, opportunity, and justice, a greater abundance of  spiritual and material blessings, and a higher quality of life, liberty,  and the pursuit of happiness.  
1977-5	1977	The state of the Union is a measurement of the many elements of which it is  composed--a political union of diverse States, an economic union of varying  interests, an intellectual union of common convictions, and a moral union  of immutable ideals.  
1977-6	1977	Taken in sum, I can report that the state of the Union is good. There is  room for improvement, as always, but today we have a more perfect Union  than when my stewardship began.  
1977-7	1977	As a people we discovered that our Bicentennial was much more than a  celebration of the past; it became a joyous reaffirmation of all that it  means to be Americans, a confirmation before all the world of the vitality  and durability of our free institutions. I am proud to have been privileged  to preside over the affairs of our Federal Government during these eventful  years when we proved, as I said in my first words upon assuming office,  that "our Constitution works; our great Republic is a Government of laws  and not of men. Here the people rule."  
1977-8	1977	The people have spoken; they have chosen a new President and a new Congress  to work their will. I congratulate you--particularly the new Members--as  sincerely as I did President-elect Carter. In a few days it will be his  duty to outline for you his priorities and legislative recommendations.  Tonight I will not infringe on that responsibility, but rather wish him the  very best in all that is good for our country.  
1977-9	1977	During the period of my own service in this Capitol and in the White House,  I can recall many orderly transitions of governmental responsibility--of  problems as well as of position, of burdens as well as of power. The genius  of the American system is that we do this so naturally and so normally.  There are no soldiers marching in the street except in the Inaugural  Parade; no public demonstrations except for some of the dancers at the  Inaugural Ball; the opposition party doesn't go underground, but goes on  functioning vigorously in the Congress and in the country; and our vigilant  press goes right on probing and publishing our faults and our follies,  confirming the wisdom of the framers of the first amendment.  
1977-10	1977	Because of the transfer of authority in our form of government affects the  state of the Union and of the world, I am happy to report to you that the  current transition is proceeding very well. I was determined that it  should; I wanted the new President to get off on an easier start than I  had.  
1977-11	1977	When I became President on August 9, 1974, our Nation was deeply divided  and tormented. In rapid succession the Vice President and the President had  resigned in disgrace. We were still struggling with the after-effects of a  long, unpopular, and bloody war in Southeast Asia. The economy was unstable  and racing toward the worst recession in 40 years. People were losing jobs.  The cost of living was soaring. The Congress and the Chief Executive were  at loggerheads. The integrity of our constitutional process and other  institutions was being questioned. For more than 15 years domestic spending  had soared as Federal programs multiplied, and the expense escalated  annually. During the same period our national security needs were steadily  shortchanged. In the grave situation which prevailed in August 1974, our  will to maintain our international leadership was in doubt.  
1977-12	1977	I asked for your prayers and went to work.  
1977-13	1977	In January 1975 I reported to the Congress that the state of the Union was  not good. I proposed urgent action to improve the economy and to achieve  energy independence in 10 years. I reassured America's allies and sought to  reduce the danger of confrontation with potential adversaries. I pledged a  new direction for America. 1975 was a year of difficult decisions, but  Americans responded with realism, common sense, and self-discipline.  
1977-14	1977	By January 1976 we were headed in a new direction, which I hold to be the  right direction for a free society. It was guided by the belief that  successful problem-solving requires more than Federal action alone, that it  involves a full partnership among all branches and all levels of government  and public policies which nurture and promote the creative energies of  private enterprises, institutions, and individual citizens.  
1977-15	1977	A year ago I reported that the state of the Union was better--in many ways  a lot better--but still not good enough. Common sense told me to stick to  the steady course we were on, to continue to restrain the inflationary  growth of government, to reduce taxes as well as spending, to return local  decisions to local officials, to provide for long-range sufficiency in  energy and national security needs. I resisted the immense pressures of an  election year to open the floodgates of Federal money and the temptation to  promise more than I could deliver. I told it as it was to the American  people and demonstrated to the world that in our spirited political  competition, as in this chamber, Americans can disagree without being  disagreeable.  
1977-16	1977	Now, after 30 months as your President, I can say that while we still have  a way to go, I am proud of the long way we have come together.  
1977-17	1977	I am proud of the part I have had in rebuilding confidence in the  Presidency, confidence in our free system, and confidence in our future.  Once again, Americans believe in themselves, in their leaders, and in the  promise that tomorrow holds for their children.  
1977-18	1977	I am proud that today America is at peace. None of our sons are fighting  and dying in battle anywhere in the world. And the chance for peace among  all nations is improved by our determination to honor our vital commitments  in defense of peace and freedom.  
1977-19	1977	I am proud that the United States has strong defenses, strong alliances,  and a sound and courageous foreign policy.  
1977-20	1977	Our alliances with major partners, the great industrial democracies of  Western Europe, Japan, and Canada, have never been more solid.  Consultations on mutual security, defense, and East-West relations have  grown closer. Collaboration has branched out into new fields such as  energy, economic policy, and relations with the Third World. We have used  many avenues for cooperation, including summit meetings held among major  allied countries. The friendship of the democracies is deeper, warmer, and  more effective than at any time in 30 years.  
1977-21	1977	We are maintaining stability in the strategic nuclear balance and pushing  back the specter of nuclear war. A decisive step forward was taken  in the Vladivostok Accord which I negotiated with General Secretary  Brezhnev--joint recognition that an equal ceiling should be placed  on the number of strategic weapons on each side. With resolve and wisdom  on the part of both nations, a good agreement is well within reach  this year.  
1977-22	1977	The framework for peace in the Middle East has been built. Hopes for future  progress in the Middle East were stirred by the historic agreements we  reached and the trust and confidence that we formed. Thanks to American  leadership, the prospects for peace in the Middle East are brighter than  they have been in three decades. The Arab states and Israel continue to  look to us to lead them from confrontation and war to a new era of  accommodation and peace. We have no alternative but to persevere, and I am  sure we will. The opportunities for a final settlement are great, and the  price of failure is a return to the bloodshed and hatred that for too long  have brought tragedy to all of the peoples of this area and repeatedly  edged the world to the brink of war.  
1977-23	1977	Our relationship with the People's Republic of China is proving its  importance and its durability. We are finding more and more common ground  between our two countries on basic questions of international affairs.  
1977-24	1977	In my two trips to Asia as President, we have reaffirmed America's  continuing vital interest in the peace and security of Asia and the Pacific  Basin, established a new partnership with Japan, confirmed our dedication  to the security of Korea, and reinforced our ties with the free nations of  Southeast Asia.  
1977-25	1977	An historic dialog has begun between industrial nations and developing  nations. Most proposals on the table are the initiatives of the United  States, including those on food, energy, technology, trade, investment, and  commodities. We are well launched on this process of shaping positive and  reliable economic relations between rich nations and poor nations over the  long term.  
1977-26	1977	We have made progress in trade negotiations and avoided protectionism  during recession. We strengthened the international monetary system. During  the past 2 years the free world's most important economic powers have  already brought about important changes that serve both developed and  developing economies. The momentum already achieved must be nurtured and  strengthened, for the prosperity of the rich and poor depends upon it.  
1977-27	1977	In Latin America, our relations have taken on a new maturity and a sense of  common enterprise.  
1977-28	1977	In Africa the quest for peace, racial justice, and economic progress is at  a crucial point. The United States, in close cooperation with the United  Kingdom, is actively engaged in this historic process. Will change come  about by warfare and chaos and foreign intervention? Or will it come about  by negotiated and fair solutions, ensuring majority rule, minority rights,  and economic advance? America is committed to the side of peace and justice  and to the principle that Africa should shape its own future, free of  outside intervention.  
1977-29	1977	American leadership has helped to stimulate new international efforts to  stem the proliferation of nuclear weapons and to shape a comprehensive  treaty governing the use of oceans.  
1977-30	1977	I am gratified by these accomplishments. They constitute a record of broad  success for America and for the peace and prosperity of all mankind. This  administration leaves to its successor a world in better condition than we  found. We leave, as well, a solid foundation for progress on a range of  issues that are vital to the well-being of America.  
1977-31	1977	What has been achieved in the field of foreign affairs and what can be  accomplished by the new administration demonstrate the genius of Americans  working together for the common good. It is this, our remarkable ability to  work together, that has made us a unique nation. It is Congress, the  President, and the people striving for a better world.  
1977-32	1977	I know all patriotic Americans want this Nation's foreign policy to  succeed. I urge members of my party in this Congress to give the new  President loyal support in this area. I express the hope that this new  Congress will reexamine its constitutional role in international affairs.  
1977-33	1977	The exclusive right to declare war, the duty to advise and consent on the  part of the Senate, the power of the purse on the part of the House are  ample authority for the legislative branch and should be jealously guarded.  But because we may have been too careless of these powers in the past does  not justify congressional intrusion into, or obstruction of, the proper  exercise of Presidential responsibilities now or in the future. There can  be only one Commander in Chief. In these times crises cannot be managed and  wars cannot be waged by committee, nor can peace be pursued solely by  parliamentary debate. To the ears of the world, the President speaks for  the Nation. While he is, of course, ultimately accountable to the Congress,  the courts, and the people, he and his emissaries must not be handicapped  in advance in their relations with foreign governments as has sometimes  happened in the past.  
1977-34	1977	At home I am encouraged by the Nation's recovery from the recession and our  steady return to sound economic growth. It is now continuing after the  recent period of uncertainty, which is part of the price we pay for free  elections.  
1977-35	1977	Our most pressing need today and the future is more jobs--productive,  permanent jobs created by a thriving economy. We must revise our tax system  both to ease the burden of heavy taxation and to encourage the investment  necessary for the creation of productive jobs for all Americans who want to  work.  
1977-36	1977	Earlier this month I proposed a permanent income tax reduction of $10  billion below current levels, including raising the personal exemption from  $750 to $1,000. I also recommended a series of measures to stimulate  investment, such as accelerated depreciation for new plants and equipment  in areas of high unemployment, a reduction in the corporate tax rate from  48 to 46 percent, and eliminating the present double taxation of dividends.  I strongly urge the Congress to pass these measures to help create the  productive, permanent jobs in the private economy that are so essential for  our future.  
1977-37	1977	All the basic trends are good; we are not on the brink of another recession  or economic disaster. If we follow prudent policies that encourage  productive investment and discourage destructive inflation, we will come  out on top, and I am sure we will.  
1977-38	1977	We have successfully cut inflation by more than half. When I took office,  the Consumer Price Index was rising at 12.2 percent a year. During 1976 the  rate of inflation was 5 percent.  
1977-39	1977	We have created more jobs--over 4 million more jobs today than in the  spring of 1975. Throughout this Nation today we have over 88 million people  in useful, productive jobs--more than at any other time in our Nation's  history. But there are still too many Americans unemployed. This is the  greatest regret that I have as I leave office.  
1977-40	1977	We brought about with the Congress, after much delay, the renewal of the  general revenue sharing. We expanded community development and Federal  manpower programs. We began a significant urban mass transit program.  Federal programs today provide more funds for our States and local  governments than ever before--$70 billion for the current fiscal year.  Through these programs and others that provide aid directly to individuals,  we have kept faith with our tradition of compassionate help for those who  need it. As we begin our third century we can be proud of the progress that  we have made in meeting human needs for all of our citizens.  
1977-41	1977	We have cut the growth of crime by nearly 90 percent. Two years ago crime  was increasing at the rate of 18 percent annually. In the first three  quarters of 1976, that growth rate had been cut to 2 percent. But crime,  and the fear of crime, remains one of the most serious problems facing our  citizens.  
1977-42	1977	We have had some successes, and there have been some disappointments.  Bluntly, I must remind you that we have not made satisfactory progress  toward achieving energy independence. Energy is absolutely vital to the  defense of our country, to the strength of our economy, and to the quality  of our lives.  
1977-43	1977	Two years ago I proposed to the Congress the first comprehensive national  energy program--a specific and coordinated set of measures that would end  our vulnerability to embargo, blockade, or arbitrary price increases and  would mobilize U.S. technology and resources to supply a significant share  of the free world's energy after 1985. Of the major energy proposals I  submitted 2 years ago, only half, belatedly, became law. In 1973 we were  dependent upon foreign oil imports for 36 percent of our needs. Today, we  are 40-percent dependent, and we'll pay out $34 billion for foreign oil  this year. Such vulnerability at present or in the future is intolerable  and must be ended.  
1977-44	1977	The answer to where we stand on our national energy effort today reminds me  of the old argument about whether the tank is half full or half empty. The  pessimist will say we have half failed to achieve our 10-year energy goals;  the optimist will say that we have half succeeded. I am always an optimist,  but we must make up for lost time.  
1977-45	1977	We have laid a solid foundation for completing the enormous task which  confronts us. I have signed into law five major energy bills which contain  significant measures for conservation, resource development, stockpiling,  and standby authorities. We have moved forward to develop the naval  petroleum reserves; to build a 500-million barrel strategic petroleum  stockpile; to phase out unnecessary Government allocation and price  controls; to develop a lasting relationship with other oil consuming  nations; to improve the efficiency of energy use through conservation in  automobiles, buildings, and industry; and to expand research on new  technology and renewable resources such as wind power, geothermal and solar  energy. All these actions, significant as they are for the long term, are  only the beginning.  
1977-46	1977	I recently submitted to the Congress my proposals to reorganize the Federal  energy structure and the hard choices which remain if we are serious about  reducing our dependence upon foreign energy. These include programs to  reverse our declining production of natural gas and increase incentives for  domestic crude oil production. I proposed to minimize environmental  uncertainties affecting coal development, expand nuclear power generation,  and create an energy independence authority to provide government financial  assistance for vital energy programs where private capital is not  available.  
1977-47	1977	We must explore every reasonable prospect for meeting our energy needs when  our current domestic reserves of oil and natural gas begin to dwindle in  the next decade. I urgently ask Congress and the new administration to move  quickly on these issues. This Nation has the resources and the capability  to achieve our energy goals if its Government has the will to proceed, and  I think we do.  
1977-48	1977	I have been disappointed by inability to complete many of the meaningful  organizational reforms which I contemplated for the Federal Government,  although a start has been made. For example, the Federal judicial system  has long served as a model for other courts. But today it is threatened by  a shortage of qualified Federal judges and an explosion of litigation  claiming Federal jurisdiction. I commend to the new administration and the  Congress the recent report and recommendations of the Department of  Justice, undertaken at my request, on "the needs of the Federal Courts." I  especially endorse its proposals for a new commission on the judicial  appointment process.  
1977-49	1977	While the judicial branch of our Government may require reinforcement, the  budgets and payrolls of the other branches remain staggering. I cannot help  but observe that while the White House staff and the Executive Office of  the President have been reduced and the total number of civilians in the  executive branch contained during the 1970's, the legislative branch has  increased substantially although the membership of the Congress remains at  535. Congress now costs the taxpayers more than a million dollars per  Member; the whole legislative budget has passed the billion dollar mark.  
1977-50	1977	We have made some progress in cutting back the expansion of government and  its intrusion into individual lives, but believe me, there is much more to  be done--and you and I know it. It can only be done by tough and  temporarily painful surgery by a Congress as prepared as the President to  face up to this very real political problem. Again, I wish my successor,  working with a substantial majority of his own party, the best of success  in reforming the costly and cumbersome machinery of the Federal  Government.  
1977-51	1977	The task of self-government is never finished. The problems are great; the  opportunities are greater.  
1977-52	1977	America's first goal is and always will be peace with honor. America must  remain first in keeping peace in the world. We can remain first in peace  only if we are never second in defense.  
1977-53	1977	In presenting the state of the Union to the Congress and to the American  people, I have a special obligation as Commander in Chief to report on our  national defense. Our survival as a free and independent people requires,  above all, strong military forces that are well equipped and highly trained  to perform their assigned mission.  
1977-54	1977	I am particularly gratified to report that over the past 2 1/2 years, we  have been able to reverse the dangerous decline of the previous decade in  real resources this country was devoting to national defense. This was an  immediate problem I faced in 1974. The evidence was unmistakable that the  Soviet Union had been steadily increasing the resources it applied to  building its military strength. During this same period the United States  real defense spending declined. In my three budgets we not only arrested  that dangerous decline, but we have established the positive trend which is  essential to our ability to contribute to peace and stability in the  world.  
1977-55	1977	The Vietnam war, both materially and psychologically, affected our overall  defense posture. The dangerous anti-military sentiment discouraged defense  spending and unfairly disparaged the men and women who serve in our Armed  Forces.  
1977-56	1977	The challenge that now confronts this country is whether we have the  national will and determination to continue this essential defense effort  over the long term, as it must be continued. We can no longer afford to  oscillate from year to year in so vital a matter; indeed, we have a duty to  look beyond the immediate question of budgets and to examine the nature of  the problem we will face over the next generation.  
1977-57	1977	I am the first recent President able to address long-term, basic issues  without the burden of Vietnam. The war in Indochina consumed enormous  resources at the very time that the overwhelming strategic superiority we  once enjoyed was disappearing. In past years, as a result of decisions by  the United States, our strategic forces leveled off, yet the Soviet Union  continued a steady, constant buildup of its own forces, committing a high  percentage of its national economic effort to defense.  
1977-58	1977	The United States can never tolerate a shift in strategic balance against  us or even a situation where the American people or our allies believe the  balance is shifting against us. The United States would risk the most  serious political consequences if the world came to believe that our  adversaries have a decisive margin of superiority.  
1977-59	1977	To maintain a strategic balance we must look ahead to the 1980's and  beyond. The sophistication of modern weapons requires that we make  decisions now if we are to ensure our security 10 years from now.  Therefore, I have consistently advocated and strongly urged that we pursue  three critical strategic programs: the Trident missile launching submarine;  the B-1 bomber, with its superior capability to penetrate modern air  defenses; and a more advanced intercontinental ballistic missile that will  be better able to survive nuclear attack and deliver a devastating  retaliatory strike.  
1977-60	1977	In an era where the strategic nuclear forces are in rough equilibrium, the  risks of conflict below the nuclear threshold may grow more perilous. A  major, long-term objective, therefore, is to maintain capabilities to deal  with, and thereby deter, conventional challenges and crises, particularly  in Europe.  
1977-61	1977	We cannot rely solely on strategic forces to guarantee our security or to  deter all types of aggression. We must have superior naval and marine  forces to maintain freedom of the seas, strong multipurpose tactical air  forces, and mobile, modern ground forces. Accordingly, I have directed a  long-term effort to improve our worldwide capabilities to deal with  regional crises.  
1977-62	1977	I have submitted a 5-year naval building program indispensable to the  Nation's maritime strategy. Because the security of Europe and the  integrity of NATO remain the cornerstone of American defense policy, I have  initiated a special, long-term program to ensure the capacity of the  Alliance to deter or defeat aggression in Europe.  
1977-63	1977	As I leave office I can report that our national defense is effectively  deterring conflict today. Our Armed Forces are capable of carrying out the  variety of missions assigned to them. Programs are underway which will  assure we can deter war in the years ahead. But I also must warn that it  will require a sustained effort over a period of years to maintain these  capabilities. We must have the wisdom, the stamina, and the courage to  prepare today for the perils of tomorrow, and I believe we will.  
1977-64	1977	As I look to the future--and I assure you I intend to go on doing that for  a good many years--I can say with confidence that the state of the Union is  good, but we must go on making it better and better.  
1977-65	1977	This gathering symbolizes the constitutional foundation which makes  continued progress possible, synchronizing the skills of three independent  branches of Government, reserving fundamental sovereignty to the people of  this great land. It is only as the temporary representatives and servants  of the people that we meet here, we bring no hereditary status or gift of  infallibility, and none follows us from this place.  
1977-66	1977	Like President Washington, like the more fortunate of his successors, I  look forward to the status of private citizen with gladness and gratitude.  To me, being a citizen of the United States of America is the greatest  honor and privilege in this world.  
1977-67	1977	From the opportunities which fate and my fellow citizens have given me, as  a Member of the House, as Vice President and President of the Senate, and  as President of all the people, I have come to understand and place the  highest value on the checks and balances which our founders imposed on  government through the separation of powers among co-equal legislative,  executive, and judicial branches. This often results in difficulty and  delay, as I well know, but it also places supreme authority under God,  beyond any one person, any one branch, any majority great or small, or any  one party. The Constitution is the bedrock of all our freedoms. Guard and  cherish it, keep honor and order in your own house, and the Republic will  endure.  
1977-68	1977	It is not easy to end these remarks. In this Chamber, along with some of  you, I have experienced many, many of the highlights of my life. It was  here that I stood 28 years ago with my freshman colleagues, as Speaker Sam  Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick  Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates,  Clem Zablocki-and I remember those who have gone to their rest. It was here  we waged many, many a lively battle--won some, lost some, but always  remaining friends. It was here, surrounded by such friends, that the  distinguished Chief Justice swore me in as Vice President on December 6,  1973. It was here I returned 8 months later as your President to ask not  for a honeymoon, but for a good marriage.  
1977-69	1977	I will always treasure those memories and your many, many kindnesses. I  thank you for them all.  
1977-70	1977	My fellow Americans, I once asked you for your prayers, and now I give you  mine: May God guide this wonderful country, its people, and those they have  chosen to lead them. May our third century be illuminated by liberty and  blessed with brotherhood, so that we and all who come after us may be the  humble servants of thy peace. Amen.  
1977-71	1977	Good night. God bless you.  
1978-1	1978	Two years ago today we had the first caucus in Iowa, and one year ago  tomorrow, I walked from here to the White House to take up the duties of  President of the United States. I didn't know it then when I walked, but  I've been trying to save energy ever since.  
1978-2	1978	I return tonight to fulfill one of those duties of the Constitution: to  give to the Congress, and to the Nation, information on the state of the  Union.  
1978-3	1978	Militarily, politically, economically, and in spirit, the state of our  Union is sound.  
1978-4	1978	We are a great country, a strong country, a vital and dynamic country, and  so we will remain.  
1978-5	1978	We are a confident people and a hardworking people, a decent and a  compassionate people, and so we will remain.  
1978-6	1978	I want to speak to you tonight about where we are and where we must go,  about what we have done and what we must do. And I want to pledge to you my  best efforts and ask you to pledge yours.  
1978-7	1978	Each generation of Americans has to face circumstances not of its own  choosing, but by which its character is measured and its spirit is tested.  
1978-8	1978	There are times of emergency, when a nation and its leaders must bring  their energies to bear on a single urgent task. That was the duty Abraham  Lincoln faced when our land was torn apart by conflict in the War Between  the States. That was the duty faced by Franklin Roosevelt when he led  America out of an economic depression and again when he led America to  victory in war.  
1978-9	1978	There are other times when there is no single overwhelming crisis, yet  profound national interests are at stake.  
1978-10	1978	At such times the risk of inaction can be equally great. It becomes the  task of leaders to call forth the vast and restless energies of our people  to build for the future.  
1978-11	1978	That is what Harry Truman did in the years after the Second World War, when  we helped Europe and Japan rebuild themselves and secured an international  order that has protected freedom from aggression.  
1978-12	1978	We live in such times now, and we face such duties.  
1978-13	1978	We've come through a long period of turmoil and doubt, but we've once again  found our moral course, and with a new spirit, we are striving to express  our best instincts to the rest of the world.  
1978-14	1978	There is all across our land a growing sense of peace and a sense of common  purpose. This sense of unity cannot be expressed in programs or in  legislation or in dollars. It's an achievement that belongs to every  individual American. This unity ties together, and it towers over all our  efforts here in Washington, and it serves as an inspiring beacon for all of  us who are elected to serve.  
1978-15	1978	This new atmosphere demands a new spirit, a partnership between those of us  who lead and those who elect. The foundations of this partnership are  truth, the courage to face hard decisions, concern for one another and the  common good over special interests, and a basic faith and trust in the  wisdom and strength and judgment of the American people.  
1978-16	1978	For the first time in a generation, we are not haunted by a major  international crisis or by domestic turmoil, and we now have a rare and a  priceless opportunity to address persistent problems and burdens which come  to us as a nation, quietly and steadily getting worse over the years.  
1978-17	1978	As President, I've had to ask you, the Members of Congress, and you, the  American people, to come to grips with some of the most difficult and hard  questions facing our society.  
1978-18	1978	We must make a maximum effort, because if we do not aim for the best, we  are very likely to achieve little. I see no benefit to the country if we  delay, because the problems will only get worse.  
1978-19	1978	We need patience and good will, but we really need to realize that there is  a limit to the role and the function of government. Government cannot solve  our problems, it can't set our goals, it cannot define our vision.  Government cannot eliminate poverty or provide a bountiful economy or  reduce inflation or save our cities or cure illiteracy or provide energy.  And government cannot mandate goodness. Only a true partnership between  government and the people can ever hope to reach these goals.  
1978-20	1978	Those of us who govern can sometimes inspire, and we can identify needs and  marshal resources, but we simply cannot be the managers of everything and  everybody.  
1978-21	1978	We here in Washington must move away from crisis management, and we must  establish clear goals for the future, immediate and the distant future,  which will let us work together and not in conflict. Never again should we  neglect a growing crisis like the shortage of energy, where further delay  will only lead to more harsh and painful solutions.  
1978-22	1978	Every day we spend more than $120 million for foreign oil. This slows our  economic growth, it lowers the value of the dollar overseas, and it  aggravates unemployment and inflation here at home.  
1978-23	1978	Now we know what we must do, increase production. We must cut down on  waste. And we must use more of those fuels which are plentiful and more  permanent. We must be fair to people, and we must not disrupt our Nation's  economy and our budget.  
1978-24	1978	Now, that sounds simple. But I recognize the difficulties involved. I know  that it is not easy for the Congress to act. But the fact remains that on  the energy legislation, we have failed the American people. Almost 5 years  after the oil embargo dramatized the problem for us all, we still do not  have a national energy program. Not much longer can we tolerate this  stalemate. It undermines our national interest both at home and abroad. We  must succeed, and I believe we will.  
1978-25	1978	Our main task at home this year, with energy a central element, is the  Nation's economy. We must continue the recovery and further cut  unemployment and inflation.  
1978-26	1978	Last year was a good one for the United States. We reached all of our major  economic goals for 1977. Four million new jobs were created, an alltime  record, and the number of unemployed dropped by more than a million.  Unemployment right now is the lowest it has been since 1974, and not since  World War II has such a high percentage of American people been employed.  
1978-27	1978	The rate of inflation went down. There was a good growth in business  profits and investments, the source of more jobs for our workers, and a  higher standard of living for all our people. After taxes and inflation,  there was a healthy increase in workers' wages.  
1978-28	1978	And this year, our country will have the first $2 trillion economy in the  history of the world.  
1978-29	1978	Now, we are proud of this progress the first year, but we must do even  better in the future.  
1978-30	1978	We still have serious problems on which all of us must work together. Our  trade deficit is too large. Inflation is still too high, and too many  Americans still do not have a job.  
1978-31	1978	Now, I didn't have any simple answers for all these problems. But we have  developed an economic policy that is working, because it's simple,  balanced, and fair. It's based on four principles: First, the economy must  keep on expanding to produce new jobs and better income, which our people  need. The fruits of growth must be widely shared. More jobs must be made  available to those who have been bypassed until now. And the tax system  must be made fairer and simpler.  
1978-32	1978	Secondly, private business and not the Government must lead the expansion  in the future.  
1978-33	1978	Third, we must lower the rate of inflation and keep it down. Inflation  slows down economic growth, and it's the most cruel to the poor and also to  the elderly and others who live on fixed incomes.  
1978-34	1978	And fourth, we must contribute to the strength of the world economy.  
1978-35	1978	I will announce detailed proposals for improving our tax system later this  week. We can make our tax laws fairer, we can make them simpler and easier  to understand, and at the same time, we can, and we will, reduce the tax  burden on American citizens by $25 billion.  
1978-36	1978	The tax reforms and the tax reductions go together. Only with the long  overdue reforms will the full tax cut be advisable.  
1978-37	1978	Almost $17 billion in income tax cuts will go to individuals. Ninety-six  percent of all American taxpayers will see their taxes go down. For a  typical family of four, this means an annual saving of more than $250 a  year, or a tax reduction of about 20 percent. A further $2 billion cut in  excise taxes will give more relief and also contribute directly to lowering  the rate of inflation.  
1978-38	1978	And we will also provide strong additional incentives for business  investment and growth through substantial cuts in the corporate tax rates  and improvement in the investment tax credit.  
1978-39	1978	Now, these tax proposals will increase opportunity everywhere in the  Nation. But additional jobs for the disadvantaged deserve special  attention.  
1978-40	1978	We've already passed laws to assure equal access to the voting booth and to  restaurants and to schools, to housing, and laws to permit access to jobs.  But job opportunity, the chance to earn a decent living, is also a basic  human right, which we cannot and will not ignore.  
1978-41	1978	A major priority for our Nation is the final elimination of the barriers  that restrict the opportunities available to women and also to black people  and Hispanics and other minorities. We've come a long way toward that goal.  But there is still much to do. What we inherited from the past must not be  permitted to shackle us in the future.  
1978-42	1978	I'll be asking you for a substantial increase in funds for public jobs for  our young people, and I also am recommending that the Congress continue the  public service employment programs at more than twice the level of a year  ago. When welfare reform is completed, we will have more than a million  additional jobs so that those on welfare who are able to work can work.  
1978-43	1978	However, again, we know that in our free society, private business is still  the best source of new jobs. Therefore, I will propose a new program to  encourage businesses to hire young and disadvantaged Americans. These young  people only need skills and a chance in order to take their place in our  economic system. Let's give them the chance they need. A major step in the  right direction would be the early passage of a greatly improved  Humphrey-Hawkins bill.  
1978-44	1978	My budget for 1979 addresses these national needs, but it is lean and  tight. I have cut waste wherever possible.  
1978-45	1978	I am proposing an increase of less than 2 percent after adjusting for  inflation, the smallest increase in the Federal budget in 4 years.  
1978-46	1978	Lately, Federal spending has taken a steadily increasing portion of what  Americans produce. Our new budget reverses that trend, and later I hope to  bring the Government's toll down even further. And with your help, we'll do  that.  
1978-47	1978	In time of high employment and a strong economy, deficit spending should  not be a feature of our budget. As the economy continues to gain strength  and as our unemployment rates continue to fall, revenues will grow. With  careful planning, efficient management, and proper restraint on spending,  we can move rapidly toward a balanced budget, and we will.  
1978-48	1978	Next year the budget deficit will be only slightly less than this year. But  one-third of the deficit is due to the necessary tax cuts that I've  proposed. This year the right choice is to reduce the burden on taxpayers  and provide more jobs for our people.  
1978-49	1978	The third element in our program is a renewed attack on inflation. We've  learned the hard way that high unemployment will not prevent or cure  inflation. Government can help us by stimulating private investment and by  maintaining a responsible economic policy. Through a new top-level review  process, we will do a better job of reducing Government regulation that  drives up costs and drives up prices.  
1978-50	1978	But again, Government alone cannot bring down the rate of inflation. When a  level of high inflation is expected to continue, then companies raise  prices to protect their profit margins against prospective increases in  wages and other costs, while workers demand higher wages as protection  against expected price increases. It's like an escalation in the arms race,  and understandably, no one wants to disarm alone.  
1978-51	1978	Now, no one firm or a group of workers can halt this process. It's an  effort that we must all make together. I'm therefore asking government,  business, labor, and other groups to join in a voluntary program to  moderate inflation by holding wage and price increases in each sector of  the economy during 1978 below the average increases of the last 2 years.  
1978-52	1978	I do not believe in wage and price controls. A sincere commitment to  voluntary constraint provides a way, perhaps the only way, to fight  inflation without Government interference.  
1978-53	1978	As I came into the Capitol tonight, I saw the farmers, my fellow farmers,  standing out in the snow. I'm familiar with their problem, and I know from  Congress' action that you are too. When I was running Carters Warehouse, we  had spread on our own farms 5-10-15 fertilizer for about $40 a ton. The  last time I was home, the price was about $100 a ton. The cost of nitrogen  has gone up 150 percent, and the price of products that farmers sell has  either stayed the same or gone down a little.  
1978-54	1978	Now, this past year in 1977, you, the Congress, and I together passed a new  agricultural act. It went into effect October 1. It'll have its first  impact on the 1978 crops. It will help a great deal. It'll add $6 1/2  billion or more to help the farmers with their price supports and target  prices.  
1978-55	1978	Last year we had the highest level of exports of farm products in the  history of our country, $24 billion. We expect to have more this year.  We'll be working together. But I think it's incumbent on us to monitor very  carefully the farm situation and continue to work harmoniously with the  farmers of our country. What's best for the farmers, the farm families, in  the long run is also best for the consumers of our country.  
1978-56	1978	Economic success at home is also the key to success in our international  economic policy. An effective energy program, strong investment and  productivity, and controlled inflation will provide [improve] our trade  balance and balance it, and it will help to protect the integrity of the  dollar overseas.  
1978-57	1978	By working closely with our friends abroad, we can promote the economic  health of the whole world, with fair and balanced agreements lowering the  barriers to trade.  
1978-58	1978	Despite the inevitable pressures that build up when the world economy  suffers from high unemployment, we must firmly resist the demands for  self-defeating protectionism. But free trade must also be fair trade. And I  am determined to protect American industry and American workers against  foreign trade practices which are unfair or illegal.  
1978-59	1978	In a separate written message to Congress, I've outlined other domestic  initiatives, such as welfare reform, consumer protection, basic education  skills, urban policy, reform of our labor laws, and national health care  later on this year. I will not repeat these tonight. But there are several  other points that I would like to make directly to you.  
1978-60	1978	During these past years, Americans have seen our Government grow far from  us.  
1978-61	1978	For some citizens, the Government has almost become like a foreign country,  so strange and distant that we've often had to deal with it through trained  ambassadors who have sometimes become too powerful and too influential,  lawyers, accountants, and lobbyists. This cannot go on.  
1978-62	1978	We must have what Abraham Lincoln wanted, a government for the people.  
1978-63	1978	We've made progress toward that kind of government. You've given me the  authority I requested to reorganize the Federal bureaucracy. And I am using  that authority.  
1978-64	1978	We've already begun a series of reorganization plans which will be  completed over a period of 3 years. We have also proposed abolishing almost  500 Federal advisory and other commissions and boards. But I know that the  American people are still sick and tired of Federal paperwork and redtape.  Bit by bit we are chopping down the thicket of unnecessary Federal  regulations by which Government too often interferes in our personal lives  and our personal business. We've cut the public's Federal paperwork load by  more than 12 percent in less than a year. And we are not through cutting.  
1978-65	1978	We've made a good start on turning the gobbledygook of Federal regulations  into plain English that people can understand. But we know that we still  have a long way to go.  
1978-66	1978	We've brought together parts of 11 Government agencies to create a new  Department of Energy. And now it's time to take another major step by  creating a separate Department of Education.  
1978-67	1978	But even the best organized Government will only be as effective as the  people who carry out its policies. For this reason, I consider civil  service reform to be absolutely vital. Worked out with the civil servants  themselves, this reorganization plan will restore the merit principle to a  system which has grown into a bureaucratic maze. It will provide greater  management flexibility and better rewards for better performance without  compromising job security.  
1978-68	1978	Then and only then can we have a government that is efficient, open, and  truly worthy of our people's understanding and respect. I have promised  that we will have such a government, and I intend to keep that promise.  
1978-69	1978	In our foreign policy, the separation of people from government has been in  the past a source of weakness and error. In a democratic system like ours,  foreign policy decisions must be able to stand the test of public  examination and public debate. If we make a mistake in this administration,  it will be on the side of frankness and openness with the American people.  
1978-70	1978	In our modern world, when the deaths of literally millions of people can  result from a few terrifying seconds of destruction, the path of national  strength and security is identical to the path of peace.  
1978-71	1978	Tonight, I am happy to report that because we are strong, our Nation is at  peace with the world.  
1978-72	1978	We are a confident nation. We've restored a moral basis for our foreign  policy. The very heart of our identity as a nation is our firm commitment  to human rights.  
1978-73	1978	We stand for human rights because we believe that government has as a  purpose to promote the well-being of its citizens. This is true in our  domestic policy; it's also true in our foreign policy. The world must know  that in support of human rights, the United States will stand firm.  
1978-74	1978	We expect no quick or easy results, but there has been significant movement  toward greater freedom and humanity in several parts of the world.  
1978-75	1978	Thousands of political prisoners have been freed. The leaders of the world,  even our ideological adversaries, now see that their attitude toward  fundamental human rights affects their standing in the international  community, and it affects their relations with the United States.  
1978-76	1978	To serve the interests of every American, our foreign policy has three  major goals.  
1978-77	1978	The first and prime concern is and will remain the security of our  country.  
1978-78	1978	Security is based on our national will, and security is based on the  strength of our Armed Forces. We have the will, and militarily we are very  strong.  
1978-79	1978	Security also comes through the strength of our alliances. We have  reconfirmed our commitment to the defense of Europe, and this year we will  demonstrate that commitment by further modernizing and strengthening our  military capabilities there.  
1978-80	1978	Security can also be enhanced by agreements with potential adversaries  which reduce the threat of nuclear disaster while maintaining our own  relative strategic capability.  
1978-81	1978	In areas of peaceful competition with the Soviet Union, we will continue to  more than hold our own.  
1978-82	1978	At the same time, we are negotiating with quiet confidence, without haste,  with careful determination, to ease the tensions between us and to ensure  greater stability and security.  
1978-83	1978	The strategic arms limitation talks have been long and difficult. We want a  mutual limit on both the quality and the quantity of the giant nuclear  arsenals of both nations, and then we want actual reductions in strategic  arms as a major step toward the ultimate elimination of nuclear weapons  from the face of the Earth.  
1978-84	1978	If these talks result in an agreement this year, and I trust they will, I  pledge to you that the agreement will maintain and enhance the stability of  the world's strategic balance and the security of the United States.  
1978-85	1978	For 30 years, concerted but unsuccessful efforts have been made to ban the  testing of atomic explosives, both military weapons and peaceful nuclear  devices.  
1978-86	1978	We are hard at work with Great Britain and the Soviet Union on an agreement  which will stop testing and will protect our national security and provide  for adequate verification of compliance. We are now making, I believe, good  progress toward this comprehensive ban on nuclear explosions.  
1978-87	1978	We are also working vigorously to halt the proliferation of nuclear weapons  among the nations of the world which do not now have them and to reduce the  deadly global traffic in conventional arms sales. Our stand for peace is  suspect if we are also the principal arms merchant of the world. So, we've  decided to cut down our arms transfers abroad on a year-by-year basis and  to work with other major arms exporters to encourage their similar  constraint.  
1978-88	1978	Every American has a stake in our second major goal, a world at peace. In a  nuclear age, each of us is threatened when peace is not secured everywhere.  We are trying to promote harmony in those parts of the world where major  differences exist among other nations and threaten international peace.  
1978-89	1978	In the Middle East, we are contributing our good offices to maintain the  momentum of the current negotiations and to keep open the lines of  communication among the Middle Eastern leaders. The whole world has a great  stake in the success of these efforts. This is a precious opportunity for a  historic settlement of a longstanding conflict, an opportunity which may  never come again in our lifetime.  
1978-90	1978	Our role has been difficult and sometimes thankless and controversial. But  it has been constructive and it has been necessary, and it will continue.  
1978-91	1978	Our third major foreign policy goal is one that touches the life of every  American citizen every day, world economic growth and stability.  
1978-92	1978	This requires strong economic performance by the industrialized democracies  like ourselves and progress in resolving the global energy crisis. Last  fall, with the help of others, we succeeded in our vigorous efforts to  maintain the stability of the price of oil. But as many foreign leaders  have emphasized to me personally and, I am sure, to you, the greatest  future contribution that America can make to the world economy would be an  effective energy conservation program here at home. We will not hesitate to  take the actions needed to protect the integrity of the American dollar.  
1978-93	1978	We are trying to develop a more just international system. And in this  spirit, we are supporting the struggle for human development in Africa, in  Asia, and in Latin America.  
1978-94	1978	Finally, the world is watching to see how we act on one of our most  important and controversial items of business, approval of the Panama Canal  treaties. The treaties now before the Senate are the result of the work of  four administrations, two Democratic, two Republican.  
1978-95	1978	They guarantee that the canal will be open always for unrestricted use by  the ships of the world. Our ships have the right to go to the head of the  line for priority of passage in times of emergency or need. We retain the  permanent right to defend the canal with our own military forces, if  necessary, to guarantee its openness and its neutrality.  
1978-96	1978	The treaties are to the clear advantage of ourselves, the Panamanians, and  the other users of the canal. Ratifying the Panama Canal treaties will  demonstrate our good faith to the world, discourage the spread of hostile  ideologies in this hemisphere, and directly contribute to the economic  well-being and the security of the United States.  
1978-97	1978	I have to say that that's very welcome applause.  
1978-98	1978	There were two moments on my recent journey which, for me, confirmed the  final aims of our foreign policy and what it always must be.  
1978-99	1978	One was in a little village in India, where I met a people as passionately  attached to their rights and liberties as we are, but whose children have a  far smaller chance for good health or food or education or human  fulfillment than a child born in this country.  
1978-100	1978	The other moment was in Warsaw, capital of a nation twice devastated by war  in this century. There, people have rebuilt the city which war's  destruction took from them. But what was new only emphasized clearly what  was lost.  
1978-101	1978	What I saw in those two places crystalized for me the purposes of our own  Nation's policy: to ensure economic justice, to advance human rights, to  resolve conflicts without violence, and to proclaim in our great democracy  our constant faith in the liberty and dignity of human beings everywhere.  
1978-102	1978	We Americans have a great deal of work to do together. In the end, how well  we do that work will depend on the spirit in which we approach it. We must  seek fresh answers, unhindered by the stale prescriptions of the past.  
1978-103	1978	It has been said that our best years are behind us. But I say again that  America's best is still ahead. We have emerged from bitter experiences  chastened but proud, confident once again, ready to face challenges once  again, and united once again.  
1978-104	1978	We come together tonight at a solemn time. Last week the Senate lost a good  and honest man, Lee Metcalf of Montana.  
1978-105	1978	And today, the flag of the United States flew at half-mast from this  Capitol and from American installations and ships all over the world, in  mourning for Senator Hubert Humphrey.  
1978-106	1978	Because he exemplified so well the joy and the zest of living, his death  reminds us not so much of our own mortality, but of the possibilities  offered to us by life. He always looked to the future with a special  American kind of confidence, of hope and enthusiasm. And the best way that  we can honor him is by following his example.  
1978-107	1978	Our task, to use the words of Senator Humphrey, is "reconciliation,  rebuilding, and rebirth."  
1978-108	1978	Reconciliation of private needs and interests into a higher purpose.  
1978-109	1978	Rebuilding the old dreams of justice and liberty, and country and  community.  
1978-110	1978	Rebirth of our faith in the common good.  
1978-111	1978	Each of us here tonight, and all who are listening in your homes, must  rededicate ourselves to serving the common good. We are a community, a  beloved community, all of us. Our individual fates are linked, our futures  intertwined. And if we act in that knowledge and in that spirit, together,  as the Bible says, we can move mountains.  
1978-112	1978	Thank you very much.  
1979-1	1979	Tonight I want to examine in a broad sense the state of our American  Union--how we are building a new foundation for a peaceful and a prosperous  world.  
1979-2	1979	Our children who will be born this year will come of age in the 21st  century. What kind of society, what kind of world are we building for them?  Will we ourselves be at peace? Will our children enjoy a better quality of  life? Will a strong and united America still be a force for freedom and  prosperity around the world?  
1979-3	1979	Tonight, there is every sign that the state of our Union is sound.  
1979-4	1979	Our economy offers greater prosperity for more of our people than ever  before. Real per capita income and real business profits have risen  substantially in the last 2 years. Farm exports are setting an all-time  record each year, and farm income last year, net farm income, was up more  than 25 percent.  
1979-5	1979	Our liberties are secure. Our military defenses are strong and growing  stronger. And more importantly, tonight, America--our beloved country--is  at peace.  
1979-6	1979	Our earliest national commitments, modified and reshaped by succeeding  generations, have served us well. But the problems that we face today are  different from those that confronted earlier generations of Americans. They  are more subtle, more complex, and more interrelated. At home, we are  recognizing ever more clearly that government alone cannot solve these  problems. And abroad, few of them can be solved by the United States alone.  But Americans as a united people, working with our allies and friends, have  never been afraid to face problems and to solve problems, either here or  abroad.  
1979-7	1979	The challenge to us is to build a new and firmer foundation for the  future--for a sound economy, for a more effective government, for more  political trust, and for a stable peace--so that the America our children  inherit will be even stronger and even better than it is today.  
1979-8	1979	We cannot resort to simplistic or extreme solutions which substitute myths  for common sense.  
1979-9	1979	In our economy, it is a myth that we must choose endlessly between  inflation and recession. Together, we build the foundation for a strong  economy, with lower inflation, without contriving either a recession with  its high unemployment or unworkable, mandatory government controls.  
1979-10	1979	In our government, it is a myth that we must choose between compassion and  competence. Together, we build the foundation for a government that works,  and works for people.  
1979-11	1979	In our relations with our potential adversaries, it is a myth that we must  choose between confrontation and capitulation. Together, we build the  foundation for a stable world of both diversity and peace.  
1979-12	1979	Together, we've already begun to build the foundation for confidence in our  economic system. During the last 2 years, in bringing our economy out of  the deepest recession since the 1930's, we've created 7,100,000 new jobs.  The unemployment rate has gone down 25 percent. And now we must redouble  our fight against the persistent inflation that has wracked our country for  more than a decade. That's our important domestic issue, and we must do it  together.  
1979-13	1979	We know that inflation is a burden for all Americans, but it's a disaster  for the poor, the sick, and the old. No American family should be forced to  choose among food, warmth, health care, or decent housing because the cost  of any of these basic necessities has climbed out of reach.  
1979-14	1979	Three months ago, I outlined to the Nation a balanced anti-inflation  program that couples responsible government restraint with responsible wage  and price restraint. It's based upon my knowledge that there is a more  powerful force than government compulsion--the force created by the  cooperative efforts of millions of Americans working toward a common goal.  
1979-15	1979	Business and labor have been increasingly supportive. It's imperative that  we in government do our part. We must stop excessive government growth, and  we must control government spending habits.  
1979-16	1979	I've sent to this Congress a stringent but a fair budget, one that, since I  ran for President in 1976, will have cut the Federal deficit in half. And  as a percentage of our gross national product, the deficit will have  dropped by almost 75 percent.  
1979-17	1979	This Congress had a good record last year, and I now ask the 96th Congress  to continue this partnership in holding the line on excess Federal  spending. It will not be easy. But we must be strong, and we must be  persistent.  
1979-18	1979	This budget is a clear message that, with the help of you and the American  people, I am determined, as President, to bring inflation under control.  
1979-19	1979	The 1980 budget provides enough spending restraint to begin unwinding  inflation, but enough support for our country to keep American workers  productive and to encourage the investments that provide new jobs. We will  continue to mobilize our Nation's resources to reduce our trade deficit  substantially this year and to maintain the strength of the American  dollar.  
1979-20	1979	We've demonstrated in this restrained budget that we can build on the gains  of the past 2 years to provide additional support to educate disadvantaged  children, to care for the elderly, to provide nutrition and legal services  for the poor, and to strengthen the economic base of our urban communities  and, also, our rural areas.  
1979-21	1979	This year, we will take our first steps to develop a national health plan.  
1979-22	1979	We must never accept a permanent group of unemployed Americans, with no  hope and no stake in building our society. For those left out of the  economy because of discrimination, a lack of skills, or poverty, we must  maintain high levels of training, and we must continue to provide jobs.  
1979-23	1979	A responsible budget is not our only weapon to control inflation. We must  act now to protect all Americans from health care costs that are rising $1  million per hour, 24 hours a day, doubling every 5 years. We must take  control of the largest contributor to that inflation: skyrocketing hospital  costs.  
1979-24	1979	There will be no clearer test of the commitment of this Congress to the  anti-inflation fight than the legislation that I will submit again this  year to hold down inflation in hospital care.  
1979-25	1979	Over the next 5 years, my proposals will save Americans a total of $60  billion, of which $25 billion will be savings to the American taxpayer in  the Federal budget itself. The American people have waited long enough.  This year we must act on hospital cost containment.  
1979-26	1979	We must also fight inflation by improvements and better enforcement of our  antitrust laws and by reducing government obstacles to competition in the  private sector.  
1979-27	1979	We must begin to scrutinize the overall effect of regulation in our  economy. Through deregulation of the airline industry we've increased  profits, cut prices for all Americans, and begun--for one of the few times  in the history of our Nation--to actually dismantle a major Federal  bureaucracy. This year, we must begin the effort to reform our regulatory  processes for the railroad, bus, and the trucking industries.  
1979-28	1979	America has the greatest economic system in the world. Let's reduce  government interference and give it a chance to work.  
1979-29	1979	I call on Congress to take other anti-inflation action--to expand our  exports to protect American jobs threatened by unfair trade, to conserve  energy, to increase production and to speed development of solar power, and  to reassess our Nation's technological superiority. American workers who  enlist in the fight against inflation deserve not just our gratitude, but  they deserve the protection of the real wage insurance proposal that I have  already made to the Congress.  
1979-30	1979	To be successful, we must change our attitudes as well as our policies. We  cannot afford to live beyond our means. We cannot afford to create programs  that we can neither manage nor finance, or to waste our natural resources,  and we cannot tolerate mismanagement and fraud. Above all, we must meet the  challenges of inflation as a united people.  
1979-31	1979	With the support of the American people, government in recent decades has  helped to dismantle racial barriers, has provided assistance for the  jobless and the retired, has fed the hungry, has protected the safety,  health, and bargaining rights of American workers, and has helped to  preserve our natural heritage.  
1979-32	1979	But it's not enough to have created a lot of government programs. Now we  must make the good programs more effective and improve or weed out those  which are wasteful or unnecessary.  
1979-33	1979	With the support of the Congress, we've begun to reorganize and to get  control of the bureaucracy. We are reforming the civil service system, so  that we can recognize and reward those who do a good job and correct or  remove those who do not.  
1979-34	1979	This year, we must extend major reorganization efforts to education, to  economic development, and to the management of our natural resources. We  need to enact a sunshine [sunset] law that when government programs have  outlived their value, they will automatically be terminated.  
1979-35	1979	There's no such thing as an effective and a noncontroversial reorganization  and reform. But we know that honest, effective government is essential to  restore public faith in our public action.  
1979-36	1979	None of us can be satisfied when two-thirds of the American citizens chose  not to vote last year in a national election. Too many Americans feel  powerless against the influence of private lobbying groups and the  unbelievable flood of private campaign money which threatens our electoral  process.  
1979-37	1979	This year, we must regain the public's faith by requiring limited financial  funds from public funds for congressional election campaigns. House bill 1  provides for this public financing of campaigns. And I look forward with a  great deal of anticipation to signing it at an early date.  
1979-38	1979	A strong economy and an effective government will restore confidence in  America. But the path of the future must be charted in peace. We must  continue to build a new and a firm foundation for a stable world  community.  
1979-39	1979	We are building that new foundation from a position of national  strength--the strength of our own defenses, the strength of our friendships  with other nations, and of our oldest American ideals.  
1979-40	1979	America's military power is a major force for security and stability in the  world. We must maintain our strategic capability and continue the progress  of the last 2 years with our NATO Allies, with whom we have increased our  readiness, modernized our equipment, and strengthened our defense forces in  Europe. I urge you to support the strong defense budget which I have  proposed to the Congress.  
1979-41	1979	But our national security in this complicated age requires more than just  military might. In less than a lifetime, world population has more than  doubled, colonial empires have disappeared, and a hundred new nations have  been born, and migration to the world's cities have all awakened new  yearnings for economic justice and human rights among people everywhere.  
1979-42	1979	This demand for justice and human rights is a wave of the future. In such a  world, the choice is not which super power will dominate the world. None  can and none will. The choice instead is between a world of anarchy and  destruction, or a world of cooperation and peace.  
1979-43	1979	In such a world, we seek not to stifle inevitable change, but to influence  its course in helpful and constructive ways that enhance our values, our  national interests, and the cause of peace.  
1979-44	1979	Towering over this volatile, changing world, like a thundercloud on a  summer day, looms the awesome power of nuclear weapons.  
1979-45	1979	We will continue to help shape the forces of change, to anticipate emerging  problems of nuclear proliferation and conventional arms sales, and to use  our great strength parts of the world before they erupt and spread.  
1979-46	1979	We have no desire to be the world's policeman. But America does want to be  the world's peacemaker.  
1979-47	1979	We are building the foundation for truly global cooperation, not only with  Western and industrialized nations but with the developing countries as  well. Our ties with Japan and our European allies are stronger than ever,  and so are our friendly relations with the people of Latin America, Africa,  and the Western Pacific and Asia.  
1979-48	1979	We've won new respect in this hemisphere with the Panama Canal treaties.  We've gained new trust with the developing world through our opposition to  racism, our commitment to human rights, and our support for majority rule  in Africa.  
1979-49	1979	The multilateral trade negotiations are now reaching a successful  conclusion, and congressional approval is essential to the economic  well-being of our own country and of the world. This will be one of our top  priorities in 1979.  
1979-50	1979	We are entering a hopeful era in our relations with one-fourth of the  world's people who live in China. The presence of Vice Premier Deng  Xiaoping next week will help to inaugurate that new era. And with prompt  congressional action on authorizing legislation, we will continue our  commitment to a prosperous, peaceful, and secure life for the people of  Taiwan.  
1979-51	1979	I'm grateful that in the past year, as in the year before, no American has  died in combat anywhere in the world. And in Iran, Nicaragua, Cyprus,  Namibia, and Rhodesia, our country is working for peaceful solutions to  dangerous conflicts.  
1979-52	1979	In the Middle East, under the most difficult circumstances, we have sought  to help ancient enemies lay aside deep-seated differences that have  produced four bitter wars in our lifetime.  
1979-53	1979	Our firm commitment to Israel's survival and security is rooted in our  deepest convictions and in our knowledge of the strategic importance to our  own Nation of a stable Middle East. To promote peace and reconciliation in  the region, we must retain the trust and the confidence both of Israel and  also of the Arab nations that are sincerely searching for peace.  
1979-54	1979	I am determined, as President, to use the full, beneficial influence of our  country so that the precious opportunity for lasting peace between Israel  and Egypt will not be lost.  
1979-55	1979	The new foundation of international cooperation that we seek excludes no  nation. Cooperation with the Soviet Union serves the cause of peace, for in  this nuclear age, world peace must include peace between the super  powers--and it must mean the control of nuclear arms.  
1979-56	1979	Ten years ago, the United States and the Soviet Union made the historic  decision to open the strategic arms limitations talks, or SALT. The purpose  of SALT, then as now, is not to gain a unilateral advantage for either  nation, but to protect the security of both nations, to reverse the costly  and dangerous momentum of the nuclear arms race, to preserve a stable  balance of nuclear forces, and to demonstrate to a concerned world that we  are determined to help preserve the peace.  
1979-57	1979	The first SALT agreement was concluded in 1972. And since then, during 6  years of negotiation by both Republican and Democratic leaders, nearly all  issues of SALT II have been resolved. If the Soviet Union continues to  negotiate in good faith, a responsible SALT agreement will be reached.  
1979-58	1979	It's important that the American people understand the nature of the SALT  process.  
1979-59	1979	SALT II is not based on sentiment; it's based on self-interest--of the  United States and of the Soviet Union. Both nations share a powerful common  interest in reducing the threat of a nuclear war. I will sign no agreement  which does not enhance our national security.  
1979-60	1979	SALT II does not rely on trust; it will be verifiable. We have very  sophisticated, proven means, including our satellites, to determine for  ourselves whether or not the Soviet Union is meeting its treaty  obligations. I will sign no agreement which cannot be verified.  
1979-61	1979	The American nuclear deterrent will remain strong after SALT II. For  example, just one of our relatively invulnerable Poseidon  submarines--comprising less than 2 percent of our total nuclear force of  submarines, aircraft, and land-based missiles--carries enough warheads to  destroy every large- and medium-sized city in the Soviet Union. Our  deterrent is overwhelming, and I will sign no agreement unless our deterrent  force will remain overwhelming.  
1979-62	1979	A SALT agreement, of course, cannot substitute for wise diplomacy or a  strong defense, nor will it end the danger of nuclear war. But it will  certainly reduce that danger. It will strengthen our efforts to ban nuclear  tests and to stop the spread of atomic weapons to other nations. And it can  begin the process of negotiating new agreements which will further limit  nuclear arms.  
1979-63	1979	The path of arms control, backed by a strong defense, the path our Nation  and every President has walked for 30 years, can lead to a world of law and  of international negotiation and consultation in which all peoples might  live in peace. In this year 1979, nothing is more important than that the  Congress and the people of the United States resolve to continue with me on  that path of nuclear arms control and world peace. This is paramount.  
1979-64	1979	I've outlined some of the changes that have transformed the world and which  are continuing as we meet here tonight. But we in America need not fear  change. The values on which our Nation was founded: individual liberty,  self-determination, the potential for human fulfillment in freedom, all of  these endure. We find these democratic principles praised, even in books  smuggled out of totalitarian nations and on wallposters in lands which we  thought were closed to our influence. Our country has regained its special  place of leadership in the worldwide struggle for human rights. And that is  a commitment that we must keep at home, as well as abroad.  
1979-65	1979	The civil rights revolution freed all Americans, black and white, but its  full promise still remains unrealized. I will continue to work with all my  strength for equal opportunity for all Americans--and for affirmative  action for those who carry the extra burden of past denial of equal  opportunity.  
1979-66	1979	We remain committed to improving our labor laws to better protect the  rights of American workers. And our Nation must make it clear that the  legal rights of women as citizens are guaranteed under the laws of our land  by ratifying the equal rights amendment.  
1979-67	1979	As long as I'm President, at home and around the world America's examples  and America's influence will be marshaled to advance the cause of human  rights.  
1979-68	1979	To establish those values, two centuries ago a bold generation of Americans  risked their property, their position, and life itself. We are their heirs,  and they are sending us a message across the centuries. The words they made  so vivid are now growing faintly indistinct, because they are not heard  often enough. They are words like "justice," "equality," "unity," "truth,"  "sacrifice," "liberty," "faith," and "love."  
1979-69	1979	These words remind us that the duty of our generation of Americans is to  renew our Nation's faith, not focused just against foreign threats but  against the threats of selfishness, cynicism, and apathy.  
1979-70	1979	The new foundation I've discussed tonight can help us build a nation and a  world where every child is nurtured and can look to the future with hope,  where the resources now wasted on war can be turned towards meeting human  needs, where all people have enough to eat, a decent home, and protection  against disease.  
1979-71	1979	It can help us build a nation and a world where all people are free to seek  the truth and to add to human understanding, so that all of us may live our  lives in peace.  
1979-72	1979	Tonight, I ask you, the Members of the Congress, to join me in building  that new foundation, a better foundation, for our beloved country and our  world.  
1979-73	1979	Thank you very much.  
1980-1	1980	This last few months has not been an easy time for any of us. As we meet  tonight, it has never been more clear that the state of our Union depends  on the state of the world. And tonight, as throughout our own generation,  freedom and peace in the world depend on the state of our Union.  
1980-2	1980	The 1980's have been born in turmoil, strife, and change. This is a time of  challenge to our interests and our values and it's a time that tests our  wisdom and our skills.  
1980-3	1980	At this time in Iran, 50 Americans are still held captive, innocent victims  of terrorism and anarchy. Also at this moment, massive Soviet troops are  attempting to subjugate the fiercely independent and deeply religious  people of Afghanistan. These two acts--one of international terrorism and  one of military aggression--present a serious challenge to the United  States of America and indeed to all the nations of the world. Together, we  will meet these threats to peace.  
1980-4	1980	I'm determined that the United States will remain the strongest of all  nations, but our power will never be used to initiate a threat to the  security of any nation or to the rights of any human being. We seek to be  and to remain secure--a nation at peace in a stable world. But to be secure  we must face the world as it is.  
1980-5	1980	Three basic developments have helped to shape our challenges: the steady  growth and increased projection of Soviet military power beyond its own  borders; the overwhelming dependence of the Western democracies on oil  supplies from the Middle East; and the press of social and religious and  economic and political change in the many nations of the developing world,  exemplified by the revolution in Iran.  
1980-6	1980	Each of these factors is important in its own right. Each interacts with  the others. All must be faced together, squarely and courageously. We will  face these challenges, and we will meet them with the best that is in us.  And we will not fail.  
1980-7	1980	In response to the abhorrent act in Iran, our Nation has never been aroused  and unified so greatly in peacetime. Our position is clear. The United  States will not yield to blackmail.  
1980-8	1980	We continue to pursue these specific goals: first, to protect the present  and long-range interests of the United States; secondly, to preserve the  lives of the American hostages and to secure, as quickly as possible, their  safe release, if possible, to avoid bloodshed which might further endanger  the lives of our fellow citizens; to enlist the help of other nations in  condemning this act of violence, which is shocking and violates the moral  and the legal standards of a civilized world; and also to convince and to  persuade the Iranian leaders that the real danger to their nation lies in  the north, in the Soviet Union and from the Soviet troops now in  Afghanistan, and that the unwarranted Iranian quarrel with the United  States hampers their response to this far greater danger to them.  
1980-9	1980	If the American hostages are harmed, a severe price will be paid. We will  never rest until every one of the American hostages are released.  
1980-10	1980	But now we face a broader and more fundamental challenge in this region  because of the recent military action of the Soviet Union.  
1980-11	1980	Now, as during the last 3 1/2 decades, the relationship between our  country, the United States of America, and the Soviet Union is the most  critical factor in determining whether the world will live at peace or be  engulfed in global conflict.  
1980-12	1980	Since the end of the Second World War, America has led other nations in  meeting the challenge of mounting Soviet power. This has not been a simple  or a static relationship. Between us there has been cooperation, there has  been competition, and at times there has been confrontation.  
1980-13	1980	In the 1940's we took the lead in creating the Atlantic Alliance in  response to the Soviet Union's suppression and then consolidation of its  East European empire and the resulting threat of the Warsaw Pact to Western  Europe.  
1980-14	1980	In the 1950's we helped to contain further Soviet challenges in Korea and  in the Middle East, and we rearmed to assure the continuation of that  containment.  
1980-15	1980	In the 1960's we met the Soviet challenges in Berlin, and we faced the  Cuban missile crisis. And we sought to engage the Soviet Union in the  important task of moving beyond the cold war and away from confrontation.  
1980-16	1980	And in the 1970's three American Presidents negotiated with the Soviet  leaders in attempts to halt the growth of the nuclear arms race. We sought  to establish rules of behavior that would reduce the risks of conflict, and  we searched for areas of cooperation that could make our relations  reciprocal and productive, not only for the sake of our two nations but for  the security and peace of the entire world.  
1980-17	1980	In all these actions, we have maintained two commitments: to be ready to  meet any challenge by Soviet military power, and to develop ways to resolve  disputes and to keep the peace.  
1980-18	1980	Preventing nuclear war is the foremost responsibility of the two  superpowers. That's why we've negotiated the strategic arms limitation  treaties--SALT I and SALT II. Especially now, in a time of great tension,  observing the mutual constraints imposed by the terms of these treaties  will be in the best interest of both countries and will help to preserve  world peace. I will consult very closely with the Congress on this matter  as we strive to control nuclear weapons. That effort to control nuclear  weapons will not be abandoned.  
1980-19	1980	We superpowers also have the responsibility to exercise restraint in the  use of our great military force. The integrity and the independence of  weaker nations must not be threatened. They must know that in our presence  they are secure.  
1980-20	1980	But now the Soviet Union has taken a radical and an aggressive new step.  It's using its great military power against a relatively defenseless  nation. The implications of the Soviet invasion of Afghanistan could pose  the most serious threat to the peace since the Second World War.  
1980-21	1980	The vast majority of nations on Earth have condemned this latest Soviet  attempt to extend its colonial domination of others and have demanded the  immediate withdrawal of Soviet troops. The Moslem world is especially and  justifiably outraged by this aggression against an Islamic people. No  action of a world power has ever been so quickly and so overwhelmingly  condemned. But verbal condemnation is not enough. The Soviet Union must pay  a concrete price for their aggression.  
1980-22	1980	While this invasion continues, we and the other nations of the world cannot  conduct business as usual with the Soviet Union. That's why the United  States has imposed stiff economic penalties on the Soviet Union. I will not  issue any permits for Soviet ships to fish in the coastal waters of the  United States. I've cut Soviet access to high-technology equipment and to  agricultural products. I've limited other commerce with the Soviet Union,  and I've asked our allies and friends to join with us in restraining their  own trade with the Soviets and not to replace our own embargoed items. And  I have notified the Olympic Committee that with Soviet invading forces in  Afghanistan, neither the American people nor I will support sending an  Olympic team to Moscow.  
1980-23	1980	The Soviet Union is going to have to answer some basic questions: Will it  help promote a more stable international environment in which its own  legitimate, peaceful concerns can be pursued? Or will it continue to expand  its military power far beyond its genuine security needs, and use that  power for colonial conquest? The Soviet Union must realize that its  decision to use military force in Afghanistan will be costly to every  political and economic relationship it values.  
1980-24	1980	The region which is now threatened by Soviet troops in Afghanistan is of  great strategic importance: It contains more than two-thirds of the world's  exportable oil. The Soviet effort to dominate Afghanistan has brought  Soviet military forces to within 300 miles of the Indian Ocean and close to  the Straits of Hormuz, a waterway through which most of the world's oil  must flow. The Soviet Union is now attempting to consolidate a strategic  position, therefore, that poses a grave threat to the free movement of  Middle East oil.  
1980-25	1980	This situation demands careful thought, steady nerves, and resolute action,  not only for this year but for many years to come. It demands collective  efforts to meet this new threat to security in the Persian Gulf and in  Southwest Asia. It demands the participation of all those who rely on oil  from the Middle East and who are concerned with global peace and stability.  And it demands consultation and close cooperation with countries in the  area which might be threatened.  
1980-26	1980	Meeting this challenge will take national will, diplomatic and political  wisdom, economic sacrifice, and, of course, military capability. We must  call on the best that is in us to preserve the security of this crucial  region.  
1980-27	1980	Let our position be absolutely clear: An attempt by any outside force to  gain control of the Persian Gulf region will be regarded as an assault on  the vital interests of the United States of America, and such an assault  will be repelled by any means necessary, including military force.  
1980-28	1980	During the past 3 years, you have joined with me to improve our own  security and the prospects for peace, not only in the vital oil-producing  area of the Persian Gulf region but around the world. We've increased  annually our real commitment for defense, and we will sustain this increase  of effort throughout the Five Year Defense Program. It's imperative that  Congress approve this strong defense budget for 1981, encompassing a  5-percent real growth in authorizations, without any reduction.  
1980-29	1980	We are also improving our capability to deploy U.S. military forces rapidly  to distant areas. We've helped to strengthen NATO and our other alliances,  and recently we and other NATO members have decided to develop and to  deploy modernized, intermediate-range nuclear forces to meet an unwarranted  and increased threat from the nuclear weapons of the Soviet Union.  
1980-30	1980	We are working with our allies to prevent conflict in the Middle East. The  peace treaty between Egypt and Israel is a notable achievement which  represents a strategic asset for America and which also enhances prospects  for regional and world peace. We are now engaged in further negotiations to  provide full autonomy for the people of the West Bank and Gaza, to resolve  the Palestinian issue in all its aspects, and to preserve the peace and  security of Israel. Let no one doubt our commitment to the security of  Israel. In a few days we will observe an historic event when Israel makes  another major withdrawal from the Sinai and when Ambassadors will be  exchanged between Israel and Egypt.  
1980-31	1980	We've also expanded our own sphere of friendship. Our deep commitment to  human rights and to meeting human needs has improved our relationship with  much of the Third World. Our decision to normalize relations with the  People's Republic of China will help to preserve peace and stability in  Asia and in the Western Pacific.  
1980-32	1980	We've increased and strengthened our naval presence in the Indian Ocean,  and we are now making arrangements for key naval and air facilities to be  used by our forces in the region of northeast Africa and the Persian Gulf.  
1980-33	1980	We've reconfirmed our 1959 agreement to help Pakistan preserve its  independence and its integrity. The United States will take action  consistent with our own laws to assist Pakistan in resisting any outside  aggression. And I'm asking the Congress specifically to reaffirm this  agreement. I'm also working, along with the leaders of other nations, to  provide additional military and economic aid for Pakistan. That request  will come to you in just a few days.  
1980-34	1980	Finally, we are prepared to work with other countries in the region to  share a cooperative security framework that respects differing values and  political beliefs, yet which enhances the independence, security, and  prosperity of all.  
1980-35	1980	All these efforts combined emphasize our dedication to defend and preserve  the vital interests of the region and of the nation which we represent and  those of our allies--in Europe and the Pacific, and also in the parts of  the world which have such great strategic importance to us, stretching  especially through the Middle East and Southwest Asia. With your help, I  will pursue these efforts with vigor and with determination. You and I will  act as necessary to protect and to preserve our Nation's security.  
1980-36	1980	The men and women of America's Armed Forces are on duty tonight in many  parts of the world. I'm proud of the job they are doing, and I know you  share that pride. I believe that our volunteer forces are adequate for  current defense needs, and I hope that it will not become necessary to  impose a draft. However, we must be prepared for that possibility. For this  reason, I have determined that the Selective Service System must now be  revitalized. I will send legislation and budget proposals to the Congress  next month so that we can begin registration and then meet future  mobilization needs rapidly if they arise.  
1980-37	1980	We also need clear and quick passage of a new charter to define the legal  authority and accountability of our intelligence agencies. We will  guarantee that abuses do not recur, but we must tighten our controls on  sensitive intelligence information, and we need to remove unwarranted  restraints on America's ability to collect intelligence.  
1980-38	1980	The decade ahead will be a time of rapid change, as nations everywhere seek  to deal with new problems and age-old tensions. But America need have no  fear. We can thrive in a world of change if we remain true to our values  and actively engaged in promoting world peace. We will continue to work as  we have for peace in the Middle East and southern Africa. We will continue  to build our ties with developing nations, respecting and helping to  strengthen their national independence which they have struggled so hard to  achieve. And we will continue to support the growth of democracy and the  protection of human rights.  
1980-39	1980	In repressive regimes, popular frustrations often have no outlet except  through violence. But when peoples and their governments can approach their  problems together through open, democratic methods, the basis for stability  and peace is far more solid and far more enduring. That is why our support  for human rights in other countries is in our own national interest as well  as part of our own national character.  
1980-40	1980	Peace--a peace that preserves freedom--remains America's first goal. In the  coming years, as a mighty nation we will continue to pursue peace. But to  be strong abroad we must be strong at home. And in order to be strong, we  must continue to face up to the difficult issues that confront us as a  nation today.  
1980-41	1980	The crises in Iran and Afghanistan have dramatized a very important lesson:  Our excessive dependence on foreign oil is a clear and present danger to  our Nation's security. The need has never been more urgent. At long last,  we must have a clear, comprehensive energy policy for the United States.  
1980-42	1980	As you well know, I have been working with the Congress in a concentrated  and persistent way over the past 3 years to meet this need. We have made  progress together. But Congress must act promptly now to complete final  action on this vital energy legislation. Our Nation will then have a major  conservation effort, important initiatives to develop solar power,  realistic pricing based on the true value of oil, strong incentives for the  production of coal and other fossil fuels in the United States, and our  Nation's most massive peacetime investment in the development of synthetic  fuels.  
1980-43	1980	The American people are making progress in energy conservation. Last year  we reduced overall petroleum consumption by 8 percent and gasoline  consumption by 5 percent below what it was the year before. Now we must do  more.  
1980-44	1980	After consultation with the Governors, we will set gasoline conservation  goals for each of the 50 States, and I will make them mandatory if these  goals are not met.  
1980-45	1980	I've established an import ceiling for 1980 of 8.2 million barrels a  day--well below the level of foreign oil purchases in 1977. I expect our  imports to be much lower than this, but the ceiling will be enforced by an  oil import fee if necessary. I'm prepared to lower these imports still  further if the other oil-consuming countries will join us in a fair and  mutual reduction. If we have a serious shortage, I will not hesitate to  impose mandatory gasoline rationing immediately.  
1980-46	1980	The single biggest factor in the inflation rate last year, the increase in  the inflation rate last year, was from one cause: the skyrocketing prices  of OPEC oil. We must take whatever actions are necessary to reduce our  dependence on foreign oil--and at the same time reduce inflation.  
1980-47	1980	As individuals and as families, few of us can produce energy by ourselves.  But all of us can conserve energy--every one of us, every day of our lives.  Tonight I call on you--in fact, all the people of America--to help our  Nation. Conserve energy. Eliminate waste. Make 1980 indeed a year of energy  conservation.  
1980-48	1980	Of course, we must take other actions to strengthen our Nation's economy.  
1980-49	1980	First, we will continue to reduce the deficit and then to balance the  Federal budget.  
1980-50	1980	Second, as we continue to work with business to hold down prices, we'll  build also on the historic national accord with organized labor to restrain  pay increases in a fair fight against inflation.  
1980-51	1980	Third, we will continue our successful efforts to cut paperwork and to  dismantle unnecessary Government regulation.  
1980-52	1980	Fourth, we will continue our progress in providing jobs for America,  concentrating on a major new program to provide training and work for our  young people, especially minority youth. It has been said that "a mind is a  terrible thing to waste." We will give our young people new hope for jobs  and a better life in the 1980's.  
1980-53	1980	And fifth, we must use the decade of the 1980's to attack the basic  structural weaknesses and problems in our economy through measures to  increase productivity, savings, and investment.  
1980-54	1980	With these energy and economic policies, we will make America even stronger  at home in this decade--just as our foreign and defense policies will make  us stronger and safer throughout the world. We will never abandon our  struggle for a just and a decent society here at home. That's the heart of  America--and it's the source of our ability to inspire other people to  defend their own rights abroad.  
1980-55	1980	Our material resources, great as they are, are limited. Our problems are  too complex for simple slogans or for quick solutions. We cannot solve them  without effort and sacrifice. Walter Lippmann once reminded us, "You took  the good things for granted. Now you must earn them again. For every right  that you cherish, you have a duty which you must fulfill. For every good  which you wish to preserve, you will have to sacrifice your comfort and  your ease. There is nothing for nothing any longer."  
1980-56	1980	Our challenges are formidable. But there's a new spirit of unity and  resolve in our country. We move into the 1980's with confidence and hope  and a bright vision of the America we want: an America strong and free, an  America at peace, an America with equal rights for all citizens--and for  women, guaranteed in the United States Constitution--an America with jobs  and good health and good education for every citizen, an America with a  clean and bountiful life in our cities and on our farms, an America that  helps to feed the world, an America secure in filling its own energy needs,  an America of justice, tolerance, and compassion. For this vision to come  true, we must sacrifice, but this national commitment will be an exciting  enterprise that will unify our people.  
1980-57	1980	Together as one people, let us work to build our strength at home, and  together as one indivisible union, let us seek peace and security  throughout the world.  
1980-58	1980	Together let us make of this time of challenge and danger a decade of  national resolve and of brave achievement.  
1980-59	1980	Thank you very much.  
1981-1	1981	To the Congress of the United States:  
1981-2	1981	The State of the Union is sound. Our economy is recovering from a  recession. A national energy plan is in place and our dependence on foreign  oil is decreasing. We have been at peace for four uninterrupted years.  
1981-3	1981	But, our Nation has serious problems. Inflation and unemployment are  unacceptably high. The world oil market is increasingly tight. There are  trouble spots throughout the world, and 52 American hostages are being held  in Iran against international law and against every precept of human  affairs.  
1981-4	1981	However, I firmly believe that, as a result of the progress made in so many  domestic and international areas over the past four years, our Nation is  stronger, wealthier, more compassionate and freer than it was four years  ago. I am proud of that fact. And I believe the Congress should be proud as  well, for so much of what has been accomplished over the past four years  has been due to the hard work, insights and cooperation of Congress. I  applaud the Congress for its efforts and its achievements.  
1981-5	1981	In this State of the Union Message I want to recount the achievements and  progress of the last four years and to offer recommendations to the  Congress for this year. While my term as President will end before the 97th  Congress begins its work in earnest, I hope that my recommendations will  serve as a guide for the direction this country should take so we build on  the record of the past four years.  
1981-6	1981	RECORD OF PROGRESS  
1981-7	1981	When I took office, our Nation faced a number of serious domestic and  international problems:  
1981-8	1981	--no national energy policy existed, and our dependence on foreign oil was  rapidly increasing;  
1981-9	1981	--public trust in the integrity and openness of the government was low;  
1981-10	1981	--the Federal government was operating inefficiently in administering  essential programs and policies;  
1981-11	1981	--major social problems were being ignored or poorly addressed by the  Federal government;  
1981-12	1981	--our defense posture was declining as a result of a defense budget which  was continuously shrinking in real terms;  
1981-13	1981	--the strength of the NATO Alliance needed to be bolstered;  
1981-14	1981	--tensions between Israel and Egypt threatened another Middle East war;  and  
1981-15	1981	--America's resolve to oppose human rights violations was under serious  question.  
1981-16	1981	Over the past 48 months, clear progress has been made in solving the  challenges we found in January of 1977:  
1981-17	1981	--almost all of our comprehensive energy program have been enacted, and the  Department of Energy has been established to administer the program;  confidence in the government's integrity has been restored, and respect for  the government's openness and fairness has been renewed;  
1981-18	1981	--the government has been made more effective and efficient: the Civil  Service system was completely reformed for the first time this century;  
1981-19	1981	--14 reorganization initiatives have been proposed to the Congress,  approved, and implemented;  
1981-20	1981	--two new Cabinet departments have been created to consolidate and  streamline the government's handling of energy and education problems;  
1981-21	1981	--inspectors general have been placed in each Cabinet department to combat  fraud, waste and other abuses;  
1981-22	1981	--the regulatory process has been reformed through creation of the  Regulatory Council, implementation of Executive Order 12044 and its  requirement for cost-impact analyses, elimination of unnecessary  regulation, and passage of the Regulatory Flexibility Act;  
1981-23	1981	--procedures have been established to assure citizen participation in  government;  
1981-24	1981	--and the airline, trucking, rail and communications industries are being  deregulated;  
1981-25	1981	--critical social problems, many long ignored by the Federal government,  have been addressed directly;  
1981-26	1981	--an urban policy was developed and implemented to reverse the decline  in our urban areas;  
1981-27	1981	--the Social Security System was refinanced to put it on a sound financial  basis;  
1981-28	1981	--the Humphrey-Hawkins Full Employment Act was enacted;  
1981-29	1981	--Federal assistance for education was expanded by more than 75 percent;  
1981-30	1981	--the minimum wage was increased to levels needed to ease the effects of  inflation;  
1981-31	1981	--affirmative action has been pursued aggressively; more blacks, Hispanics  and women have been appointed to senior government positions and to  judgeships than at any other time in our history;  
1981-32	1981	--the ERA ratification deadline was extended to aid the ratification effort;  
1981-33	1981	--and minority business procurement by the Federal government has more than  doubled;  
1981-34	1981	--the Nation's first sectoral policies were put in place, for the auto and  steel industries, with my Administration demonstrating the value of  cooperation between the government, business and labor;  
1981-35	1981	--reversing previous trends, real defense spending has increased every year  since 1977;  
1981-36	1981	--the real increase in FY 1980 defense spending is well above 3 percent  and I expect FY 1981 defense spending to be even higher;  
1981-37	1981	--looking ahead, the defense program I am proposing is premised on a real  increase in defense spending over the next five years of 20 percent or  more;  
1981-38	1981	--the NATO Alliance has proven its unity in responding to the situations in  Eastern Europe and Southwest Asia and in agreeing on the issues to be  addressed in the review of the Helsinki Final Act currently underway in  Madrid;  
1981-39	1981	--the peace process in the Middle East established at Camp David and by the  Peace Treaty between Egypt and Israel is being buttressed on two fronts:  steady progress in the normalization of Egyptian-Israeli relations in many  fields, and the commitment of both Egypt and Israel, with United States'  assistance, to see through to successful conclusion the autonomy  negotiations for the West Bank and Gaza;  
1981-40	1981	--the Panama Canal Treaties have been put into effect, which has helped to  improve relations with Latin America;  
1981-41	1981	--we have continued this Nation's strong commitment to the pursuit of human  rights throughout the world, evenhandedly and objectively;  
1981-42	1981	--our commitment to a worldwide human rights policy has remained firm;  
1981-43	1981	--and many other countries have given high priority to it;  
1981-44	1981	--our resolve to oppose aggression, such as the illegal invasion of the  Soviet Union into Afghanistan, has been supported by tough action.  
1981-45	1981	I. ENSURING ECONOMIC STRENGTH ECONOMY  
1981-46	1981	During the last decade our Nation has withstood a series of economic shocks  unprecedented in peacetime. The most dramatic of these has been the  explosive increases of OPEC oil prices. But we have also faced world  commodity shortages, natural disasters, agricultural shortages and major  challenges to world peace and security. Our ability to deal with these  shocks has been impaired because of a decrease in the growth of  productivity and the persistence of underlying inflationary forces built up  over the past 15 years.  
1981-47	1981	Nevertheless, the economy has proved to be remarkably resilient. Real  output has grown at an average rate of 3 percent per year since I took  office, and employment has grown by 10 percent. We have added about 8  million productive private sector jobs to the economy. However,  unacceptably high inflation--the most difficult economic problem I have  faced--persists.  
1981-48	1981	This inflation--which threatens the growth, productivity, and stability of  our economy--requires that we restrain the growth of the budget to the  maximum extent consistent with national security and human compassion. I  have done so in my earlier budgets, and in my FY '82 budget. However, while  restraint is essential to any appropriate economic policy, high inflation  cannot be attributed solely to government spending. The growth in budget  outlays has been more the result of economic factors than the cause of  them.  
1981-49	1981	We are now in the early stages of economic recovery following a short  recession. Typically, a post-recessionary period has been marked by  vigorous economic growth aided by anti-recessionary policy measures such as  large tax cuts or big, stimulation spending programs. I have declined to  recommend such actions to stimulate economic activity, because the  persistent inflationary pressures that beset our economy today dictate a  restrained fiscal policy.  
1981-50	1981	Accordingly, I am asking the Congress to postpone until January 1, 1982,  the personal tax reductions I had earlier proposed to take effect on  January 1 of this year.  
1981-51	1981	However, my 1982 budget proposes significant tax changes to increase the  sources of financing for business investment. While emphasizing the need  for continued fiscal restraint, this budget takes the first major step in a  long-term tax reduction program designed to increase capital formation. The  failure of our Nation's capital stock to grow at a rate that keeps pace  with its labor force has clearly been one cause of our productivity  slowdown. Higher investment rates are also critically needed to meet our  Nation's energy needs, and to replace energy-inefficient plants and  equipment with new energy-saving physical plants. The level of investment  that is called for will not occur in the absence of policies to encourage  it.  
1981-52	1981	Therefore, my budget proposes a major liberalization of tax allowances for  depreciation, as well as simplified depreciation accounting, increasing the  allowable rates by about 40 percent. I am also proposing improvements in  the investment tax credit, making it refundable, to meet the investment  needs of firms with no current earnings.  
1981-53	1981	These two proposals, along with carefully-phased tax reductions for  individuals, will improve both economic efficiency and tax equity. I urge  the Congress to enact legislation along the lines and timetable I have  proposed.  
1981-54	1981	THE 1982 BUDGET  
1981-55	1981	The FY 1982 budget I have sent to the Congress continues our four-year  policy of prudence and restraint. While the budget deficits during my term  are higher than I would have liked, their size is determined for the most  part by economic conditions. And in spite of these conditions, the relative  size of the deficit continues to decline. In 1976, before I took office,  the budget deficit equalled 4 percent of gross national product. It had  been cut to 2.3 percent in the 1980 fiscal year just ended. My 1982 budget  contains a deficit estimated to be less than 1 percent of our gross  national product.  
1981-56	1981	The rate of growth in Federal spending has been held to a minimum.  Nevertheless, outlays are still rising more rapidly than many had  anticipated, the result of many powerful forces in our society:  
1981-57	1981	We face a threat to our security, as events in Afghanistan, the Middle  East, and Eastern Europe make clear. We have a steadily aging population  and, as a result, the biggest single increase in the Federal budget is the  rising cost of retirement programs, particularly social security. We face  other important domestic needs: to continue responsibility for the  disadvantaged; to provide the capital needed by our cities and our  transportation systems; to protect our environment; to revitalize American  industry; and to increase the export of American goods and services so  essential to the creation of jobs and a trade surplus.  
1981-58	1981	Yet the Federal Government itself may not always be the proper source of  such assistance. For example, it must not usurp functions if they can be  more appropriately decided upon, managed, and financed by the private  sector or by State and local governments. My Administration has always  sought to consider the proper focus of responsibility for the most  efficient resolution of problems.  
1981-59	1981	We have also recognized the need to simplify the system of grants to State  and local governments. I have again proposed several grant consolidations  in the 1982 budget, including a new proposal that would consolidate several  highway programs.  
1981-60	1981	The pressures for growth in Federal use of national resources are great. My  Administration has initiated many new approaches to cope with these  pressures. We started a multi-year budget system, and we began a system for  controlling Federal credit programs. Yet in spite of increasing needs to  limit spending growth, we have consistently adhered to these strong budget  principles:  
1981-61	1981	Our Nation's armed forces must always stand sufficiently strong to deter  aggression and to assure our security. An effective national energy plan is  essential to increase domestic production of oil and gas, to encourage  conservation of our scarce energy resources, to stimulate conversion to  more abundant fuels, and to reduce our trade deficit. The essential human  needs for our citizens must be given the highest priority. The Federal  Government must lead the way in investment in the Nation's technological  future. The Federal Government has an obligation to nurture and protect our  environment--the common resource, birthright, and sustenance of the  American people.  
1981-62	1981	My 1982 budget continues to support these principles. It also proposes  responsible tax reductions to encourage a more productive economy, and  adequate funding of our highest priority programs within an overall policy  of constraint.  
1981-63	1981	Fiscal restraint must be continued in the years ahead. Budgets must be  tight enough to convince those who set wages and prices that the Federal  Government is serious about fighting inflation but not so tight as to choke  off all growth.  
1981-64	1981	Careful budget policy should be supplemented by other measures designed to  reduce inflation at lower cost in lost output and employment. These other  steps include measures to increase investment--such as the tax proposals  included in my 1982 budget--and measures to increase competition and  productivity in our economy. Voluntary incomes policies can also directly  influence wages and prices in the direction of moderation and thereby bring  inflation down faster and at lower cost to the economy. Through a tax-based  incomes policy (TIP) we could provide tax incentives for firms and workers  to moderate their wage and price increases. In the coming years, control of  Federal expenditures can make possible periodic tax reductions. The  Congress should therefore begin now to evaluate the potentialities of a TIP  program so that when the next round of tax reductions is appropriate a TIP  program will be seriously considered.  
1981-65	1981	EMPLOYMENT  
1981-66	1981	During the last four years we have given top priority to meeting the needs  of workers and providing additional job opportunities to those who seek  work. Since the end of 1976:  
1981-67	1981	Almost 9 million new jobs have been added to the nation's economy total  employment has reached 97 million. More jobs than ever before are held by  women, minorities and young people. Employment over the past four years has  increased by: 17% for adult women 11% for blacks, and 30% for Hispanics  employment of black teenagers increased by more than 5%, reversing the  decline that occurred in the previous eight years.  
1981-68	1981	Major initiatives launched by this Administration helped bring about these  accomplishments and have provided a solid foundation for employment and  training policy in the 1980's. In 1977, as part of the comprehensive  economic stimulus program:  
1981-69	1981	425,000 public service jobs were created A $1 billion youth employment  initiative funded 200,000 jobs the doubling of the Job Corps to 44,000  slots began and 1 million summer youth jobs were approved--a 25 percent  increase.  
1981-70	1981	In 1978:  
1981-71	1981	The Humphrey-Hawkins Full Employment Act became law the $400 million  Private Sector Initiatives Program was begun a targeted jobs tax credit for  disadvantaged youth and others with special employment barriers was enacted  the Comprehensive Employment and Training Act was reauthorized for four  years.  
1981-72	1981	In 1979:  
1981-73	1981	A $6 billion welfare reform proposal was introduced with funding for  400,000 public service jobs welfare reform demonstration projects were  launched in communities around the country the Vice President initiated a  nationwide review of youth unemployment in this country.  
1981-74	1981	In 1980:  
1981-75	1981	The findings of the Vice President's Task Force revealed the major  education and employment deficits that exist for poor and minority  youngsters. As a result a $2 billion youth education and jobs initiative  was introduced to provide unemployed youth with the basic education and  work experience they need to compete in the labor market of the 1980's. As  part of the economic revitalization program several steps were proposed to  aid workers in high unemployment communities:  
1981-76	1981	An additional 13 weeks of unemployment benefits for the long term  unemployed. $600 million to train the disadvantaged and unemployed for new  private sector jobs. Positive adjustment demonstrations to aid workers in  declining industries. The important Title VII Private Sector Initiatives  Program was reauthorized for an additional two years.  
1981-77	1981	In addition to making significant progress in helping the disadvantaged and  unemployed, important gains were realized for all workers:  
1981-78	1981	An historic national accord with organized labor made it possible for the  views of working men and women to be heard as the nation's economic and  domestic policies were formulated; the Mine Safety and Health Act brought  about improved working conditions for the nation's 500,000 miners.  substantial reforms of Occupational Safety and Health Administration were  accomplished to help reduce unnecessary burdens on business and to focus on  major health and safety problems; the minimum wage was increased over a  four year period from $2.30 to $3.35 an hour; the Black Lung Benefit Reform  Act was signed into law; attempts to weaken Davis-Bacon Act were defeated.  
1981-79	1981	While substantial gains have been made in the last four years, continued  efforts are required to ensure that this progress is continued:  
1981-80	1981	Government must continue to make labor a full partner in the policy  decisions that affect the interests of working men and women; a broad,  bipartisan effort to combat youth unemployment must be sustained  compassionate reform of the nation's welfare system should be continued  with employment opportunities provided for those able to work; workers in  declining industries should be provided new skills and help in finding  employment.  
1981-81	1981	TRADE  
1981-82	1981	Over the past year, the U.S. trade picture improved as a result of solid  export gains in both manufactured and agricultural products. Agricultural  exports reached a new record of over $40 billion, while manufactured  exports have grown by 24 percent to a record $144 billion. In these areas  the United States recorded significant surpluses of $24 billion and $19  billion respectively. While our oil imports remained a major drain on our  foreign exchange earnings, that drain was somewhat moderated by a 19  percent decline in the volume of oil imports.  
1981-83	1981	U.S. trade negotiators made significant progress over the past year in  assuring effective implementation of the agreements negotiated during the  Tokyo Round of Multilateral Trade Negotiations. Agreements reached with the  Japanese government, for example, will assure that the United States will  be able to expand its exports to the Japanese market in such key areas as  telecommunications equipment, tobacco, and lumber. Efforts by U.S. trade  negotiators also helped to persuade a number of key developing countries to  accept many of the non-tariff codes negotiated during the Multilateral  Trade Negotiations. This will assure that these countries will increasingly  assume obligations under the international trading system.  
1981-84	1981	A difficult world economic environment posed a challenge for the management  of trade relations. U.S. trade negotiators were called upon to manage  serious sectoral problems in such areas as steel, and helped to assure that  U.S. chemical exports will have continued access to the European market.  
1981-85	1981	Close consultations with the private sector in the United States have  enabled U.S. trade negotiators to pinpoint obstacles to U.S. trade in  services, and to build a basis for future negotiations. Services have been  an increasingly important source of export earnings for the United States,  and the United States must assure continued and increased access to foreign  markets.  
1981-86	1981	The trade position of the United States has improved. But vigorous efforts  are needed in a number of areas to assure continued market access for U.S.  exports, particularly agricultural and high technology products, in which  the United States continues to have a strong competitive edge. Continued  efforts are also needed to remove many domestic disincentives, which now  hamper U.S. export growth. And we must ensure that countries do not  manipulate investment, or impose investment performance requirements which  distort trade and cost us jobs in this country.  
1981-87	1981	In short, we must continue to seek free--but fair--trade. That is the  policy my Administration has pursued from the beginning, even in areas  where foreign competition has clearly affected our domestic industry. In  the steel industry, for instance, we have put Trigger Price Mechanism into  place to help prevent the dumping of steel. That action has strengthened  the domestic steel industry. In the automobile industry, we have worked--  without resort to import quotas--to strengthen the industry's ability to  modernize and compete effectively.  
1981-88	1981	SMALL BUSINESS  
1981-89	1981	I have often said that there is nothing small about small business in  America. These firms account for nearly one-half our gross national  product; over half of new technology; and much more than half of the jobs  created by industry.  
1981-90	1981	Because this sector of the economy is the very lifeblood of our National  economy, we have done much together to improve the competitive climate for  smaller firms. These concerted efforts have been an integral part of my  program to revitalize the economy.  
1981-91	1981	They include my campaign to shrink substantially the cash and time  consuming red tape burden imposed on business. They include my  personally-directed policy of ambitiously increasing the Federal  contracting dollars going to small firms, especially those owned by women  and minorities. And they include my proposals to reinvigorate existing  small businesses and assist the creation of new ones through tax reform;  financing assistance; market expansion; and support of product innovation.  
1981-92	1981	Many of my initiatives to facilitate the creation and growth of small  businesses were made in response to the White House Conference on Small  Business, which I convened. My Administration began the implementation of  most of the ideas produced last year by that citizen's advisory body;  others need to be addressed. I have proposed the reconvening of the  Conference next year to review progress; reassess priorities; and set new  goals. In the interim I hope that the incoming Administration and the new  Congress will work with the committee I have established to keep these  business development ideas alive and help implement Conference  recommendations.  
1981-93	1981	MINORITY BUSINESS  
1981-94	1981	One of the most successful developments of my Administration has been the  growth and strengthening of minority business. This is the first  Administration to put the issue on the policy agenda as a matter of major  importance. To implement the results of our early efforts in this field I  submitted legislation to Congress designed to further the development of  minority business.  
1981-95	1981	We have reorganized the Office of Minority Business into the Minority  Business Development Administration in the Department of Commerce. MBDA has  already proven to be a major factor in assisting minority businesses to  achieve equitable competitive positions in the marketplace.  
1981-96	1981	The Federal government's procurement from minority-owned firms has nearly  tripled since I took office. Federal deposits in minority-owned banks have  more than doubled and minority ownership of radio and television stations  has nearly doubled. The SBA administered 8(a) Pilot Program for procurement  with the Army proved to be successful and I recently expanded the number of  agencies involved to include NASA and the Departments of Energy and  Transportation.  
1981-97	1981	I firmly believe the critical path to full freedom and equality for  America's minorities rests with the ability of minority communities to  participate competitively in the free enterprise system. I believe the  government has a fundamental responsibility to assist in the development of  minority business and I hope the progress made in the last four years will  continue.  
1981-98	1981	II. CREATING ENERGY SECURITY  
1981-99	1981	Since I took office, my highest legislative priorities have involved the  reorientation and redirection of U.S. energy activities and for the first  time, to establish a coordinated national energy policy. The struggle to  achieve that policy has been long and difficult, but the accomplishments of  the past four years make clear that our country is finally serious about  the problems caused by our overdependence on foreign oil. Our progress  should not be lost. We must rely on and encourage multiple forms of energy  production--coal, crude oil, natural gas, solar, nuclear, synthetics--and  energy conservation. The framework put in place over the last four years  will enable us to do this.  
1981-100	1981	NATIONAL ENERGY POLICY  
1981-101	1981	As a result of actions my Administration and the Congress have taken over  the past four years, our country finally has a national energy policy:  
1981-102	1981	Under my program of phased decontrol, domestic crude oil price controls  will end September 30, 1981. As a result exploratory drilling activities  have reached an all-time high; Prices for new natural gas are being  decontrolled under the Natural Gas Policy Act--and natural gas production  is now at an all time high; the supply shortages of several years ago have  been eliminated; The windfall profits tax on crude oil has been enacted  providing $227 billion over ten years for assistance to low-income  households, increased mass transit funding, and a massive investment in the  production and development of alternative energy sources; The Synthetic  Fuels Corporation has been established to help private companies build the  facilities to produce energy from synthetic fuels; Solar energy funding has  been quadrupled, solar energy tax credits enacted, and a Solar Energy and  Energy Conservation Bank has been established; A route has been chosen to  bring natural gas from the North Slope of Alaska to the lower 48 states;  Coal production and consumption incentives have been increased, and coal  production is now at its highest level in history; A gasoline rationing  plan has been approved by Congress for possible use in the event of a  severe energy supply shortage or interruption; Gasohol production has been  dramatically increased, with a program being put in place to produce 500  million gallons of alcohol fuel by the end of this year--an amount that  could enable gasohol to meet the demand for 10 percent of all unleaded  gasoline; New energy conservation incentives have been provided for  individuals, businesses and communities and conservation has increased  dramatically. The U.S. has reduced oil imports by 25 percent--or 2 million  barrels per day--over the past four years.  
1981-103	1981	INCREASED DEVELOPMENT OF DOMESTIC ENERGY SOURCES  
1981-104	1981	Although it is essential that the Nation reduce its dependence on imported  fossil fuels and complete the transition to reliance on domestic renewable  sources of energy, it is also important that this transition be  accomplished in an orderly, economic, and environmentally sound manner. To  this end, the Administration has launched several initiatives.  
1981-105	1981	Leasing of oil and natural gas on federal lands, particularly the outer  continental shelf, has been accelerated at the same time as the  Administration has reformed leasing procedures through the 1978 amendments  to the Outer Continental Shelf Lands Act. In 1979 the Interior Department  held six OCS lease sales, the greatest number ever, which resulted in  federal receipts of $6.5 billion, another record. The five-year OCS Leasing  schedule was completed, requiring 36 sales over the next five years.  
1981-106	1981	Since 1971 no general federal coal lease sales were suspended. Over the  past four years the Administration has completely revised the federal coal  leasing program to bring it into compliance with the requirements of 1976  Federal Land Planning and Management Act and other statutory provisions.  The program is designed to balance the competing interests that affect  resource development on public lands and to ensure that adequate supplies  of coal will be available to meet national needs. As a result, the first  general competitive federal coal lease sale in ten years will be held this  month.  
1981-107	1981	In July 1980, I signed into law the Energy Security Act of 1980 which  established the Synthetic Fuels Corporation. The Corporation is designed to  spur the development of commercial technologies for production of synthetic  fuels, such as liquid and gaseous fuels from coal and the production of oil  from oil shale. The Act provides the Corporation with an initial $22  billion to accomplish these objectives. The principal purpose of the  legislation is to ensure that the nation will have available in the late  1980's the option to undertake commercial development of synthetic fuels if  that becomes necessary. The Energy Security Act also provides significant  incentives for the development of gasohol and biomass fuels, thereby  enhancing the nation's supply of alternative energy sources.  
1981-108	1981	COMMITMENT TO A SUSTAINABLE ENERGY FUTURE  
1981-109	1981	The Administration's 1977 National Energy Plan marked an historic departure  from the policies of previous Administrations. The plan stressed the  importance of both energy production and conservation to achieving our  ultimate national goal of relying primarily on secure sources of energy.  The National Energy Plan made energy conservation a cornerstone of our  national energy policy.  
1981-110	1981	In 1978, I initiated the Administration's Solar Domestic Policy Review.  This represented the first step towards widespread introduction of  renewable energy sources into the Nation's economy. As a result of the  Review, I issued the 1979 Solar Message to Congress, the first such message  in the Nation's history. The Message outlined the Administration's solar  program and established an ambitious national goal for the year 2000 of  obtaining 20 percent of this Nation's energy from solar and renewable  sources. The thrust of the federal solar program is to help industry  develop solar energy sources by emphasizing basic research and development  of solar technologies which are not currently economic, such as  photovoltaics, which generate energy directly from the sun. At the same  time, through tax incentives, education, and the Solar Energy and Energy  Conservation Bank, the solar program seeks to encourage state and local  governments, industry, and our citizens to expand their use of solar and  renewable resource technologies currently available.  
1981-111	1981	As a result of these policies and programs, the energy efficiency of the  American economy has improved markedly and investments in renewable energy  sources have grown significantly. It now takes 3 1/2 percent less energy to  produce a constant dollar of GNP than it did in January 1977. This increase  in efficiency represents a savings of over 1.3 million barrels per day of  oil equivalent, about the level of total oil production now occurring in  Alaska. Over the same period, Federal support for conservation and solar  energy has increased by more than 3000 percent, to $3.3 billion in FY 1981,  including the tax credits for solar energy and energy conservation  investments--these credits are expected to amount to $1.2 billion in FY  1981 and $1.5 billion in FY 1982.  
1981-112	1981	COMMITMENT TO NUCLEAR SAFETY AND SECURITY  
1981-113	1981	Since January 1977, significant progress has been achieved in resolving  three critical problems resulting from the use of nuclear energy:  radioactive waste management, nuclear safety and weapons proliferation.  
1981-114	1981	In 1977, the Administration announced its nuclear nonproliferation policy  and initiated the International Fuel Cycle Evaluation. In 1978, Congress  passed the Nuclear Nonproliferation Act, an historic piece of legislation.  
1981-115	1981	In February 1980, the Administration transmitted its nuclear waste  management policy to the Congress. This policy was a major advance over all  previous efforts. The principal aspects of that policy are: acknowledging  the seriousness of the problem and the numerous technical and institutional  issues; adopting a technically and environmentally conservative approach to  the first permanent repository; and providing the states with significant  involvement in nuclear waste disposal decisions by creating the State  Planning Council. While much of the plan can be and is being implemented  administratively, some new authorities are needed. The Congress should give  early priority to enacting provisions for away-from-reactor storage and the  State Planning Council.  
1981-116	1981	The accident at Three Mile Island made the nation acutely aware of the  safety risks posed by nuclear power plants. In response, the President  established the Kemeny Commission to review the accident and make  recommendations. Virtually all of the Commission's substantive  recommendations were adopted by the Administration and are now being  implemented by the Nuclear Regulatory Commission. The Congress adopted the  President's proposed plan for the Nuclear Regulatory Commission and the  Nuclear Safety Oversight Committee was established to ensure that the  Administration's decisions were implemented.  
1981-117	1981	Nuclear safety will remain a vital concern in the years ahead. We must  continue to press ahead for the safe, secure disposal of radioactive  wastes, and prevention of nuclear proliferation.  
1981-118	1981	While significant growth in foreign demand for U.S. steam coal is foreseen,  congestion must be removed at major U.S. coal exporting ports such as  Hampton Roads, Virginia, and Baltimore, Maryland. My Administration has  worked through the Interagency Coal Task Force Study to promote cooperation  and coordination of resources between shippers, railroads, vessel broker/  operators and port operators, and to determine the most appropriate Federal  role in expanding and modernizing coal export facilities, including  dredging deeper channels at selected ports. As a result of the Task Force's  efforts, administrative steps have been taken by the Corps of Engineers to  reduce significantly the amount of time required for planning and economic  review of port dredging proposals. The Administration has also recommended  that the Congress enact legislation to give the President generic authority  to recommend appropriations for channel dredging activities. Private  industry will, of course, play the major role in developing the United  States' coal export facilities, but the government must continue to work to  facilitate transportation to foreign markets.  
1981-119	1981	III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS  
1981-120	1981	For too long prior to my Administration, many of our Nation's basic human  and social needs were being ignored or handled insensitively by the Federal  government. Over the last four years, we have significantly increased  funding for many of the vital programs in these areas; developed new  programs where needs were unaddressed; targeted Federal support to those  individuals and areas most in need of our assistance; and removed barriers  that have unnecessarily kept many disadvantaged citizens from obtaining aid  for their most basic needs.  
1981-121	1981	Our record has produced clear progress in the effort to solve some of the  country's fundamental human and social problems. My Administration and the  Congress, working together, have demonstrated that government must and can  meet our citizens' basic human and social needs in a responsible and  compassionate way.  
1981-122	1981	But there is an unfinished agenda still before the Congress. If we are to  meet our obligations to help all Americans realize the dreams of sound  health care, decent housing, effective social services, a good education,  and a meaningful job, important legislation still must be enacted. National  Health Insurance, Welfare Reform, Child Health Assessment Program, are  before the Congress and I urge their passage.  
1981-123	1981	HEALTH NATIONAL HEALTH PLAN  
1981-124	1981	During my Administration, I proposed to Congress a National Health Plan  which will enable the country to reach the goal of comprehensive, universal  health care coverage. The legislation I submitted lays the foundation for  this comprehensive plan and addresses the most serious problems of health  financing and delivery. It is realistic and enactable. It does not  overpromise or overspend, and, as a result, can be the solution to the  thirty years of Congressional battles on national health insurance. My Plan  includes the following key features:  
1981-125	1981	Nearly 15 million additional poor would receive fully-subsidized  comprehensive coverage; pre-natal and delivery services are provided for  all pregnant women and coverage is provided for all acute care for infants  in their first year of life; the elderly and disabled would have a limit of  $1,250 placed on annual out-of-pocket medical expenses and would no longer  face limits on hospital coverage; all full-time employees and their  families would receive insurance against at least major medical expenses  under mandated employer coverage; Medicare and Medicaid would be combined  and expanded into an umbrella Federal program, Healthcare, for increased  program efficiency, accountability and uniformity; and strong cost  controls and health system reforms would be implemented, including  greater incentives for Health Maintenance Organizations.  
1981-126	1981	I urge the new Congress to compare my Plan with the alternatives--programs  which either do too little to improve the health care needs of Americans  most in need or programs which would impose substantial financial burdens  on the American taxpayers. I hope the Congress will see the need for and  the benefits of my Plan and work toward prompt enactment. We cannot afford  further delay in this vital area.  
1981-127	1981	HEALTH CARE COST CONTROL  
1981-128	1981	Inflation in health care costs remains unacceptably high. Throughout my  Administration, legislation to reduce health care cost inflation was one of  my highest priorities, but was not passed by the Congress. Therefore, my FY  1982 budget proposes sharing the responsibility for health care cost  control with the private sector, through voluntary hospital cost guidelines  and intensified monitoring. In the longer term, the health care  reimbursement system must be reformed. We must move away from inflationary  cost-based reimbursement and fee-for-service, and toward a system of  prospective reimbursement, under which health care providers would operate  within predetermined budgets. This reimbursement reform is essential to  ultimately control inflation in health care costs, and will be a  significant challenge to the new Congress.  
1981-129	1981	HEALTH PROMOTION AND DISEASE PREVENTION  
1981-130	1981	During my Administration, the Surgeon General released "Healthy People," a  landmark report on health promotion and disease prevention. The report  signals the growing consensus that the Nation's health strategy must be  refocused in the 1980's to emphasize the prevention of disease.  Specifically, the report lays out measurable and achieveable goals in the  reduction of mortality which can be reached by 1990.  
1981-131	1981	I urge the new Congress to endorse the principles of "Healthy People," and  to adopt the recommendations to achieve its goals. This will necessitate  adoption of a broader concept of health care, to include such areas as  environmental health, workplace health and safety, commercial product  safety, traffic safety, and health education, promotion and information.  
1981-132	1981	MATERNAL AND CHILD HEALTH  
1981-133	1981	Ensuring a healthy start in life for children remains not only a high  priority of my Administration, but also one of the most cost effective  forms of health care.  
1981-134	1981	When I took office, immunization levels for preventable childhood diseases  had fallen to 70%. As a result of a concerted nationwide effort during my  Administration, I am pleased to report that now at least 90% of children  under 15, and virtually all school-age children are immunized. In addition,  reported cases of measles and mumps are at their lowest levels ever.  
1981-135	1981	Under the National Health Plan I have proposed, there would be no  cost-sharing for prenatal and delivery services for all pregnant women and  for acute care provided to infants in their first year of life. These  preventive services have extremely high returns in terms of improved  newborn and long-term child health.  
1981-136	1981	Under the Child Health Assurance Program (CHAP) legislation which I  submitted to the Congress, and which passed the House, an additional two  million low-income children under 18 would become eligible for Medicaid  benefits, which would include special health assessments. CHAP would also  improve the continuity of care for the nearly 14 million children now  eligible for Medicaid. An additional 100,000 low-income pregnant women  would become eligible for prenatal care under the proposal. I strongly urge  the new Congress to enact CHAP and thereby provide millions of needy  children with essential health services. The legislation has had strong  bipartisan support, which should continue as the details of the bill are  completed.  
1981-137	1981	I also urge the new Congress to provide strong support for two highly  successful ongoing programs: the special supplemental food program for  women, infants and children (WIC) and Family Planning. The food supplements  under WIC have been shown to effectively prevent ill health and thereby  reduce later medical costs. The Family Planning program has been effective  at reducing unwanted pregnancies among low-income women and adolescents.  
1981-138	1981	EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED  
1981-139	1981	During my Administration, health services to the poor and underserved have  been dramatically increased. The number of National Health Service Corps  (NHSC) assignees providing services in medically underserved communities  has grown from 500 in 1977 to nearly 3,000 in 1981. The population served  by the NHSC has more than tripled since 1977. The number of Community  Health Centers providing services in high priority underserved areas has  doubled during my Administration, and will serve an estimated six million  people in 1981. I strongly urge the new Congress to support these highly  successful programs.  
1981-140	1981	MENTAL HEALTH  
1981-141	1981	One of the most significant health achievements during my Administration  was the recent passage of the Mental Health Systems Act, which grew out of  recommendations of my Commission on Mental Health. I join many others in my  gratitude to the First Lady for her tireless and effective contribution to  the passage of this important legislation.  
1981-142	1981	The Act is designed to inaugurate a new era of Federal and State  partnership in the planning and provision of mental health services. In  addition, the Act specifically provides for prevention and support services  to the chronically mentally ill to prevent unnecessary institutionalization  and for the development of community-based mental health services. I urge  the new Congress to provide adequate support for the full and timely  implementation of this Act.  
1981-143	1981	HEALTH PROTECTION  
1981-144	1981	With my active support, the Congress recently passed "Medigap" legislation,  which provides for voluntary certification of health insurance policies  supplemental to Medicare, to curb widespread abuses in this area.  
1981-145	1981	In the area of toxic agent control, legislation which I submitted to the  Congress recently passed. This will provide for a "super-fund" to cover  hazardous waste cleanup costs.  
1981-146	1981	In the area of accidental injury control, we have established automobile  safety standards and increased enforcement activities with respect to the  55 MPH speed limit. By the end of the decade these actions are expected to  save over 13,000 lives and 100,000 serious injuries each year.  
1981-147	1981	I urge the new Congress to continue strong support for all these  activities.  
1981-148	1981	FOOD AND NUTRITION  
1981-149	1981	Building on the comprehensive reform of the Food Stamp Program that I  proposed and Congress passed in 1977, my Administration and the Congress  worked together in 1979 and 1980 to enact several other important changes  in the Program. These changes will further simplify administration and  reduce fraud and error, will make the program more responsive to the needs  of the elderly and disabled, and will increase the cap on allowable program  expenditures. The Food Stamp Act will expire at the end of fiscal 1981. It  is essential that the new Administration and the Congress continue this  program to ensure complete eradication of the debilitating malnutrition  witnessed and documented among thousands of children in the 1960's.  
1981-150	1981	DRUG ABUSE PREVENTION  
1981-151	1981	At the beginning of my Administration there were over a half million heroin  addicts in the United States. Our continued emphasis on reducing the supply  of heroin, as well as providing treatment and rehabilitation to its  victims, has reduced the heroin addict population, reduced the number of  heroin overdose deaths by 80%, and reduced the number of heroin related  injuries by 50%. We have also seen and encouraged a national movement of  parents and citizens committed to reversing the very serious and disturbing  trends of adolescent drug abuse.  
1981-152	1981	Drug abuse in many forms will continue to detract, however, from the  quality of life of many Americans. To prevent that, I see four great  challenges in the years ahead. First, we must deal aggressively with the  supplies of illegal drugs at their source, through joint crop destruction  programs with foreign nations and increased law enforcement and border  interdiction. Second, we must look to citizens and parents across the  country to help educate the increasing numbers of American youth who are  experimenting with drugs to the dangers of drug abuse. Education is a key  factor in reducing drug abuse. Third, we must focus our efforts on drug and  alcohol abuse in the workplace for not only does this abuse contribute to  low productivity but it also destroys the satisfaction and sense of purpose  all Americans can gain from the work experience. Fourth, we need a change  in attitude, from an attitude which condones the casual use of drugs to one  that recognizes the appropriate use of drugs for medical purposes and  condemns the inappropriate and harmful abuse of drugs. I hope the Congress  and the new Administration will take action to meet each of these  challenges.  
1981-153	1981	EDUCATION  
1981-154	1981	The American people have always recognized that education is one of the  soundest investments they can make. The dividends are reflected in every  dimension of our national life--from the strength of our economy and  national security to the vitality of our music, art, and literature. Among  the accomplishments that have given me the most satisfaction over the last  four years are the contributions that my Administration has been able to  make to the well-being of students and educators throughout the country.  
1981-155	1981	This Administration has collaborated successfully with the Congress on  landmark education legislation. Working with the Congressional leadership,  my Administration spotlighted the importance of education by creating a new  Department of Education. The Department has given education a stronger  voice at the Federal level, while at the same time reserving the actual  control and operation of education to states, localities, and private  institutions. The Department has successfully combined nearly 150 Federal  education programs into a cohesive, streamlined organization that is more  responsive to the needs of educators and students. The Department has made  strides to cut red tape and paperwork and thereby to make the flow of  Federal dollars to school districts and institutions of higher education  more efficient. It is crucial that the Department be kept intact and  strengthened.  
1981-156	1981	Our collaboration with the Congress has resulted in numerous other  important legislative accomplishments for education. A little over two  years ago, I signed into law on the same day two major bills--one  benefiting elementary and secondary education and the other, postsecondary  education. The Education Amendments of 1978 embodied nearly all of my  Administration's proposals for improvements in the Elementary and Secondary  Education Act, including important new programs to improve students'  achievement in the basic skills and to aid school districts with  exceptionally high concentrations of children from low-income families. The  Middle Income Student Assistance Act, legislation jointly sponsored by this  Administration and the Congressional leadership, expanded eligibility for  need-based Basic Educational Opportunity Grants to approximately one-third  of the students enrolled in post-secondary education and made many more  students eligible for the first time for other types of grants, work-study,  and loans.  
1981-157	1981	Just three and a half months ago, my Administration and the Congress  successfully concluded over two years of work on a major reauthorization  bill that further expands benefits to postsecondary education. Reflected in  the Education Amendments of 1980 are major Administration recommendations  for improvements in the Higher Education Act--including proposals for  better loan access for students; a new parent loan program; simplified  application procedures for student financial aid; a strengthened Federal  commitment to developing colleges, particularly the historically Black  institutions; a new authorization for equipment and facilities  modernization funding for the nation's major research universities; and  revitalized international education programs.  
1981-158	1981	Supplementing these legislative accomplishments have been important  administrative actions aimed at reducing paperwork and simplifying  regulations associated with Federal education programs. We also launched  major initiatives to reduce the backlog of defaulted student loans and  otherwise to curb fraud, abuse, and waste in education programs.  
1981-159	1981	To insure that the education enterprise is ready to meet the scientific and  technological changes of the future, we undertook a major study of the  status of science and engineering education throughout the nation. I hope  that the findings from this report will serve as a springboard for needed  reforms at all levels of education.  
1981-160	1981	I am proud that this Administration has been able to provide the financial  means to realize many of our legislative and administrative goals. Compared  to the previous administration's last budget, I have requested the largest  overall increase in Federal funding for education in our nation's history.  My budget requests have been particularly sensitive to the needs of special  populations like minorities, women, the educationally and economically  disadvantaged, the handicapped, and students with limited English-speaking  ability. At the same time, I have requested significant increases for many  programs designed to enhance the quality of American education, including  programs relating to important areas as diverse as international education,  research libraries, museums, and teacher centers.  
1981-161	1981	Last year, I proposed to the Congress a major legislative initiative that  would direct $2 billion into education and job training programs designed  to alleviate youth unemployment through improved linkages between the  schools and the work place. This legislation generated bipartisan support;  but unfortunately, action on it was not completed in the final, rushed days  of the 96th Congress. I urge the new Congress--as it undertakes broad  efforts to strengthen the economy as well as more specific tasks like  reauthorizing the Vocational Education Act--to make the needs of our  nation's unemployed youth a top priority for action. Only by combining a  basic skills education program together with work training and employment  incentives can we make substantial progress in eliminating one of the most  severe social problems in our nation--youth unemployment, particularly  among minorities. I am proud of the progress already made through passage  of the Youth Employment and Demonstration Project Act of 1977 and the  substantial increase in our investment in youth employment programs. The  new legislation would cap these efforts.  
1981-162	1981	INCOME SECURITY SOCIAL SECURITY  
1981-163	1981	One of the highest priorities of my Administration has been to continue the  tradition of effectiveness and efficiency widely associated with the social  security program, and to assure present and future beneficiaries that they  will receive their benefits as expected. The earned benefits that are paid  monthly to retired and disabled American workers and their families provide  a significant measure of economic protection to millions of people who  might otherwise face retirement or possible disability with fear. I have  enacted changes to improve the benefits of many social security  beneficiaries during my years as President.  
1981-164	1981	The last four years have presented a special set of concerns over the  financial stability of the social security system. Shortly after taking  office I proposed and Congress enacted legislation to protect the stability  of the old age and survivors trust fund and prevent the imminent exhaustion  of the disability insurance trust fund, and to correct a flaw in the  benefit formula that was threatening the long run health of the entire  social security system. The actions taken by the Congress at my request  helped stabilize the system. That legislation was later complemented by the  Disability Insurance Amendments of 1980 which further bolstered the  disability insurance program, and reduced certain inequities among  beneficiaries.  
1981-165	1981	My commitment to the essential retirement and disability protection  provided to 35 million people each month has been demonstrated by the fact  that without interruption those beneficiaries have continued to receive  their social security benefits, including annual cost of living increases.  Changing and unpredictable economic circumstances require that we continue  to monitor the financial stability of the social security system. To  correct anticipated short-term strains on the system, I proposed last year  that the three funds be allowed to borrow from one another, and I urge the  Congress again this year to adopt such interfund borrowing. To further  strengthen the social security system and provide a greater degree of  assurance to beneficiaries, given projected future economic uncertainties,  additional action should be taken. Among the additional financing options  available are borrowing from the general fund, financing half of the  hospital insurance fund with general revenues, and increasing the payroll  tax rate. The latter option is particularly unpalatable given the  significant increase in the tax rate already mandated in law.  
1981-166	1981	This Administration continues to oppose cuts in basic social security  benefits and taxing social security benefits. The Administration continues  to support annual indexing of social security benefits.  
1981-167	1981	WELFARE REFORM  
1981-168	1981	In 1979 I proposed a welfare reform package which offers solutions to some  of the most urgent problems in our welfare system. This proposal is  embodied in two bills, The Work and Training Opportunities Act and The  Social Welfare Reform Amendments Act. The House passed the second of these  two proposals. Within the framework of our present welfare system, my  reform proposals offer achievable means to increase self-sufficiency  through work rather than welfare, more adequate assistance to people unable  to work, the removal of inequities in coverage under current programs, and  fiscal relief needed by States and localities.  
1981-169	1981	Our current welfare system is long overdue for serious reform; the system  is wasteful and not fully effective. The legislation I have proposed will  help eliminate inequities by establishing a national minimum benefit, and  by directly relating benefit levels to the poverty threshold. It will  reduce program complexity, which leads to inefficiency and waste, by  simplifying and coordinating administration among different programs.  
1981-170	1981	I urge the Congress to take action in this area along the lines I have  recommended.  
1981-171	1981	CHILD WELFARE  
1981-172	1981	My Administration has worked closely with the Congress on legislation which  is designed to improve greatly the child welfare services and foster care  programs and to create a Federal system of adoption assistance. These  improvements will be achieved with the recent enactment of H.R. 3434, the  Adoption Assistance and Child Welfare Act of 1980. The well-being of  children in need of homes and their permanent placement have been a primary  concern of my Administration. This legislation will ensure that children  are not lost in the foster care system, but instead will be returned to  their families where possible or placed in permanent adoptive homes.  
1981-173	1981	LOW-INCOME ENERGY ASSISTANCE  
1981-174	1981	In 1979 I proposed a program to provide an annual total of $1.6 billion to  low-income households which are hardest hit by rising energy bills. With  the cooperation of Congress, we were able to move quickly to provide  assistance to eligible households in time to meet their winter heating  bills.  
1981-175	1981	In response to the extreme heat conditions affecting many parts of the  country during 1980, I directed the Community Services Administration to  make available over $27 million to assist low-income individuals,  especially the elderly, facing life threatening circumstances due to  extreme heat.  
1981-176	1981	Congress amended and reauthorized the low-income energy assistance program  for fiscal year 1981, and provided $1.85 billion to meet anticipated  increasing need. The need for a program to help low-income households with  rising energy expenses will not abate in the near future. The low-income  energy assistance program should be reauthorized to meet those needs.  
1981-177	1981	HOUSING  
1981-178	1981	For the past 14 months, high interest rates have had a severe impact on the  nation's housing market. Yet the current pressures and uncertainties should  not obscure the achievements of the past four years.  
1981-179	1981	Working with the Congress, the regulatory agencies, and the financial  community, my Administration has brought about an expanded and steadier  flow of funds into home mortgages. Deregulation of the interest rates  payable by depository institutions, the evolution of variable and  renegotiated rate mortgages, development of high yielding savings  certificates, and expansion of the secondary mortgage market have all  increased housing's ability to attract capital and have assured that  mortgage money would not be cut off when interest rates rose. These actions  will diminish the cyclicality of the housing industry. Further, we have  secured legislation updating the Federal Government's emergency authority  to provide support for the housing industry through the Brooke-Cranston  program, and creating a new Section 235 housing stimulus program. These  tools will enable the Federal Government to deal quickly and effectively  with serious distress in this critical industry.  
1981-180	1981	We have also worked to expand homeownership opportunities for Americans. By  using innovative financing mechanisms, such as the graduated payment  mortgage, we have increased the access of middle income families to housing  credit. By revitalizing the Section 235 program, we have enabled nearly  100,000 moderate income households to purchase new homes. By reducing  paperwork and regulation in Federal programs, and by working with State and  local governments to ease the regulatory burden, we have helped to hold  down housing costs and produce affordable housing.  
1981-181	1981	As a result of these governmentwide efforts, 5 1/2 million more American  families bought homes in the past four years than in any equivalent period  in history. And more than 7 million homes have begun construction during my  Administration, 1 million more than in the previous four years.  
1981-182	1981	We have devoted particular effort to meeting the housing needs of low and  moderate income families. In the past four years, more than 1 million  subsidized units have been made available for occupancy by lower income  Americans and more than 600,000 assisted units have gone into construction.  In addition, we have undertaken a series of measures to revitalize and  preserve the nation's 2 million units of public and assisted housing.  
1981-183	1981	For Fiscal Year 1982, I am proposing to continue our commitment to lower  income housing. I am requesting funds to support 260,000 units of Section 8  and public housing, maintaining these programs at the level provided by  Congress in Fiscal 1981.  
1981-184	1981	While we have made progress in the past four years, in the future there are  reasons for concern. Home price inflation and high interest rates threaten  to put homeownership out of reach for first-time homebuyers. Lower income  households, the elderly and those dependent upon rental housing face rising  rents, low levels of rental housing construction by historic standards, and  the threat of displacement due to conversion to condominiums and other  factors. Housing will face strong competition for investment capital from  the industrial sector generally and the energy industries, in particular.  
1981-185	1981	To address these issues, I appointed a Presidential Task Force and Advisory  Group last October. While this effort will not proceed due to the election  result, I hope the incoming Administration will proceed with a similar  venture.  
1981-186	1981	The most important action government can take to meet America's housing  needs is to restore stability to the economy and bring down the rate of  inflation. Inflation has driven up home prices, operating costs and  interest rates. Market uncertainty about inflation has contributed to the  instability in interest rates, which has been an added burden to  homebuilders and homebuyers alike. By making a long-term commitment to  provide a framework for greater investment, sustained economic growth, and  price stability, my Administration has begun the work of creating a healthy  environment for housing.  
1981-187	1981	TRANSPORTATION  
1981-188	1981	With the passage of the Airline Deregulation Act of 1978, the Motor Carrier  Act of 1980, and the Harley O. Staggers Rail Act of 1980, my  Administration, working with the Congress, has initiated a new era of  reduced regulation of transportation industries. Deregulation will lead to  increased productivity and operating efficiencies in the industries  involved, and stimulate price and service competition, to the benefit of  consumers generally. I urge the new Administration to continue our efforts  on behalf of deregulation legislation for the intercity passenger bus  industry as well.  
1981-189	1981	In the coming decade, the most significant challenge facing the nation in  transportation services will be to improve a deteriorating physical  infrastructure of roadways, railroads, waterways and mass transit systems,  in order to conserve costly energy supplies while promoting effective  transportation services.  
1981-190	1981	HIGHWAYS  
1981-191	1981	Our vast network of highways, which account for 90 percent of travel and 80  percent by value of freight traffic goods movement, is deteriorating. If  current trends continue, a major proportion of the Interstate pavement will  have deteriorated by the end of the 1980's.  
1981-192	1981	Arresting the deterioration of the nation's system of highways is a high  priority objective for the 1980's. We must reorient the Federal mission  from major new construction projects to the stewardship of the existing  Interstate Highway System. Interstate gaps should be judged on the  connections they make and on their compatibility with community needs.  
1981-193	1981	During this decade, highway investments will be needed to increase  productivity, particularly in the elimination of bottlenecks, provide more  efficient connections to ports and seek low-cost solutions to traffic  demand.  
1981-194	1981	My Administration has therefore recommended redefining completion of the  Interstate system, consolidating over 27 categorical assistance programs  into nine, and initiating a major repair and rehabilitation program for  segments of the Interstate system. This effort should help maintain the  condition and performance of the Nation's highways, particularly the  Interstate and primary system; provide a realistic means to complete the  Interstate system by 1990; ensure better program delivery through  consolidation, and assist urban revitalization. In addition, the Congress  must address the urgent funding problems of the highway trust fund, and the  need to generate greater revenues.  
1981-195	1981	MASS TRANSIT  
1981-196	1981	In the past decade the nation's public transit systems' ridership increased  at an annual average of 1.1% each year in the 1970's (6.9% in 1979).  Continued increases in the cost of fuel are expected to make transit a  growing part of the nation's transportation system.  
1981-197	1981	As a result, my Administration projected a ten year, $43 billion program to  increase mass transit capacity by 50 percent, and promote more energy  efficient vehicle uses in the next decade. The first part of this proposal  was the five year, $24.7 billion Urban Mass Transportation Administration  reauthorization legislation I sent to the Congress in March, 1980. I urge  the 97th Congress to quickly enact this or similar legislation in 1981.  
1981-198	1981	My Administration was also the first to have proposed and signed into law a  non-urban formula grant program to assist rural areas and small communities  with public transportation programs to end their dependence on the  automobile, promote energy conservation and efficiency, and provide  transportation services to impoverished rural communities.  
1981-199	1981	A principal need of the 1980's will be maintaining mobility for all  segments of the population in the face of severely increasing  transportation costs and uncertainty of fuel supplies. We must improve the  flexibility of our transportation system and offer greater choice and  diversity in transportation services. While the private automobile will  continue to be the principal means of transportation for many Americans,  public transportation can become an increasingly attractive alternative.  We, therefore, want to explore a variety of paratransit modes, various  types of buses, modern rapid transit, regional rail systems and light rail  systems.  
1981-200	1981	Highway planning and transit planning must be integrated and related to  State, regional, district and neighborhood planning efforts now in place or  emerging. Low density development and land use threaten the fiscal capacity  of many communities to support needed services and infrastructure.  
1981-201	1981	ELDERLY AND HANDICAPPED TRANSPORTATION  
1981-202	1981	Transportation policies in the 1980's must pay increasing attention to the  needs of the elderly and handicapped. By 1990, the number of people over 65  will have grown from today's 19 million to 27 million. During the same  period, the number of handicapped--people who have difficulty using  transit as well as autos, including the elderly--is expected to increase  from 9 to 11 million, making up 4.5 percent of the population.  
1981-203	1981	We must not retreat from a policy that affords a significant and growing  portion of our population accessible public transportation while  recognizing that the handicapped are a diverse group and will need  flexible, door-to-door service where regular public transportation will not  do the job.  
1981-204	1981	RAILROADS  
1981-205	1981	In addition, the Federal government must reassess the appropriate Federal  role of support for passenger and freight rail services such as Amtrak and  Conrail. Our goal through federal assistance should be to maintain and  enhance adequate rail service, where it is not otherwise available to needy  communities. But Federal subsidies must be closely scrutinized to be sure  they are a stimulus to, and not a replacement for, private investment and  initiative. Federal assistance cannot mean permanent subsidies for  unprofitable operations.  
1981-206	1981	WATERWAYS AND RURAL TRANSPORTATION  
1981-207	1981	There is a growing need in rural and small communities for improved  transportation services. Rail freight service to many communities has  declined as railroads abandon unproductive branch lines. At the same time,  rural roads are often inadequate to handle large, heavily-loaded trucks.  The increased demand for "harvest to harbor" service has also placed an  increased burden on rural transportation systems, while bottlenecks along  the Mississippi River delay grain shipments to the Gulf of Mexico.  
1981-208	1981	We have made some progress:  
1981-209	1981	--To further develop the nation's waterways, my Administration began  construction of a new 1,200 foot lock at the site of Lock and Dam 26 on the  Mississippi River. When opened in 1987, the new lock will have a capacity  of 86 million tons per year, an 18 percent increase over the present  system. The U.S. Army Corps of Engineers has also undertaken studies to  assess the feasibility of expanding the Bonneville Locks. Rehabilitation of  John Day Lock was begun in 1980 and should be completed in 1982. My  Administration also supports the completion of the Upper Mississippi River  Master Plan to determine the feasibility of constructing a second lock at  Alton, Illinois. These efforts will help alleviate delays in transporting  corn, soybeans and other goods along the Mississippi River to the Gulf of  Mexico.  
1981-210	1981	--The Department of Transportation's new Small Community and Rural  Transportation Policy will target federal assistance for passenger  transportation, roads and highways, truck service, and railroad freight  service to rural areas. This policy implements and expands upon the earlier  White House Initiative, "Improving Transportation in Rural America,"  announced in June, 1979, and the President's "Small Community and Rural  Development Policy" announced in December, 1979. The Congress should seek  ways to balance rail branch line abandonment with the service needs of  rural and farm communities, provide financial assistance to rail branch  line rehabilitation where appropriate, assist shippers to adjust to rail  branch line abandonment where it takes place, and help make it possible for  trucking firms to serve light density markets with dependable and efficient  trucking services.  
1981-211	1981	MARITIME POLICY  
1981-212	1981	During my Administration I have sought to ensure that the U.S. maritime  industry will not have to function at an unfair competitive disadvantage in  the international market. As I indicated in my maritime policy statement to  the Congress in July, 1979, the American merchant marine is vital to our  Nation's welfare, and Federal actions should promote rather than harm it.  In pursuit of this objective, I signed into law the Controlled Carrier Act  of 1978, authorizing the Federal Maritime Commission to regulate certain  rate cutting practices of some state-controlled carriers, and recently  signed a bilateral maritime agreement with the People's Republic of China  that will expand the access of American ships to 20 specified Chinese  ports, and set aside for American-flag ships a substantial share (at least  one-third) of the cargo between our countries. This agreement should  officially foster expanded U.S. and Chinese shipping services linking the  two countries, and will provide further momentum to the growth of  Sino-American trade.  
1981-213	1981	There is also a need to modernize and expand the dry bulk segment of our  fleet. Our heavy dependence on foreign carriage of U.S.-bulk cargoes  deprives the U.S. economy of seafaring and shipbuilding jobs, adds to the  balance-of-payments deficit, deprives the Government of substantial tax  revenues, and leaves the United States dependent on foreign-flag shipping  for a continued supply of raw materials to support the civil economy and  war production in time of war.  
1981-214	1981	I therefore sent to the Congress proposed legislation to strengthen this  woefully weak segment of the U.S.-flag fleet by removing certain  disincentives to U.S. construction of dry bulkers and their operation under  U.S. registry. Enactment of this proposed legislation would establish the  basis for accelerating the rebuilding of the U.S.-flag dry bulk fleet  toward a level commensurate with the position of the United States as the  world's leading bulk trading country.  
1981-215	1981	During the past year the Administration has stated its support for  legislation that would provide specific Federal assistance for the  installation of fuel-efficient engines in existing American ships, and  would strengthen this country's shipbuilding mobilization base.  Strengthening the fleet is important, but we must also maintain our  shipbuilding base for future ship construction.  
1981-216	1981	Provisions in existing laws calling for substantial or exclusive use of  American-flag vessels to carry cargoes generated by the Government must be  vigorously pursued.  
1981-217	1981	I have therefore supported requirements that 50 percent of oil purchased  for the strategic petroleum reserve be transported in U.S.-flag vessels,  that the Cargo Preference Act be applied to materials furnished for the  U.S. assisted construction of air bases in Israel, and to cargoes  transported pursuant to the Chrysler Corporation Loan Guarantee Act. In  addition, the deep Seabed Hard Mineral Resources Act requires that at least  one ore carrier per mine site be a U.S.-flag vessel.  
1981-218	1981	Much has been done, and much remains to be done. The FY 1982 budget  includes a $107 million authorization for Construction Differential Subsidy  ("CDS") funds which, added to the unobligated CDS balance of $100 million  from 1980, and the recently enacted $135 million 1981 authorization, will  provide an average of $171 million in CDS funds in 1981 and 1982.  
1981-219	1981	COAL EXPORT POLICY  
1981-220	1981	While significant growth in foreign demand for U.S. steam coal is foreseen,  congestion at major U.S. coal exporting ports such as Hampton Roads,  Virginia, and Baltimore, Maryland, could delay and impede exports.  
1981-221	1981	My Administration has worked through the Interagency Coal Task Force Study,  which I created, to promote cooperation and coordination of resources  between shippers, railroads, vessel broker/ operators and port operators,  and to determine the most appropriate Federal role in expanding and  modernizing coal export facilities, including dredging deeper channels at  selected ports.  
1981-222	1981	Some progress has already been made. In addition to action taken by  transshippers to reduce the number of coal classifications used whenever  possible, by the Norfolk and Western Railroad to upgrade its computer  capability to quickly inventory its coal cars in its yards, and by the  Chessie Railroad which is reactivating Pier 15 in Newport News and has  established a berth near its Curtis Bay Pier in Baltimore to decrease  delays in vessel berthing, public activities will include:  
1981-223	1981	--A $26.5 million plan developed by the State of Pennsylvania and Conrail  to increase Conrail's coal handling capacity at Philadelphia;  
1981-224	1981	--A proposal by the State of Virginia to construct a steam coal port on  the Craney Island Disposal area in Portsmouth harbor;  
1981-225	1981	--Plans by Mobile, Alabama, which operates the only publicly owned coal  terminal in the U.S. to enlarge its capacity at McDuffie Island to 10  million tons ground storage and 100 car unit train unloading capability;  
1981-226	1981	--Development at New Orleans of steam coal facilities that are expected to  add over 20 million tons of annual capacity by 1983; and  
1981-227	1981	--The Corps of Engineers, working with other interested Federal agencies,  will determine which ports should be dredged, to what depth and on what  schedule, in order to accommodate larger coal carrying vessels.  
1981-228	1981	Private industry will, of course, play a major role in developing the  United States' coal export facilities. The new Administration should  continue to work to eliminate transportation bottlenecks that impede our  access to foreign markets.  
1981-229	1981	Special Needs  
1981-230	1981	WOMEN  
1981-231	1981	The past four years have been years of rapid advancement for women. Our  focus has been two-fold: to provide American women with a full range of  opportunities and to make them a part of the mainstream of every aspect of  our national life and leadership.  
1981-232	1981	I have appointed a record number of women to judgeships and to top  government posts. Fully 22 percent of all my appointees are women, and I  nominated 41 of the 46 women who sit on the Federal bench today. For the  first time in our history, women occupy policymaking positions at the  highest level of every Federal agency and department and have demonstrated  their ability to serve our citizens well.  
1981-233	1981	We have strengthened the rights of employed women by consolidating and  strengthening enforcement of sex discrimination laws under the EEOC, by  expanding employment rights of pregnant women through the Pregnancy  Disability Bill, and by increasing federal employment opportunities for  women through civil service reform, and flexi-time and part-time  employment.  
1981-234	1981	By executive order, I created the first national program to provide women  businessowners with technical assistance, grants, loans, and improved  access to federal contracts.  
1981-235	1981	We have been sensitive to the needs of women who are homemakers. I  established an Office of Families within HHS and sponsored the White House  Conference on Families. We initiated a program targeting CETA funds to help  displaced homemakers. The Social Security system was amended to eliminate  the widow's penalty and a comprehensive study of discriminatory provisions  and possible changes was presented to Congress. Legislation was passed to  give divorced spouses of foreign service officers rights to share in  pension benefits.  
1981-236	1981	We created an office on domestic violence within HHS to coordinate the 12  agencies that now have domestic violence relief programs, and to distribute  information on the problem and the services available to victims.  
1981-237	1981	Despite a stringent budget for FY 1981, the Administration consistently  supported the Women's Educational Equity Act and family planning  activities, as well as other programs that affect women, such as food  stamps, WIC, and social security.  
1981-238	1981	We have been concerned not only about the American woman's opportunities,  but ensuring equality for women around the world. In November, 1980, I sent  to the Senate the Convention on the Elimination of All Forms of  Discrimination Against Women. This United Nations document is the most  comprehensive and detailed international agreement which seeks the  advancement of women.  
1981-239	1981	On women's issues, I have sought the counsel of men and women in and out of  government and from all regions of our country. I established two panels--  the President's Advisory Committee for Women and the Interdepartmental Task  Force on Women--to advise me on these issues. The mandate for both groups  expired on December 31, but they have left behind a comprehensive review of  the status of women in our society today. That review provides excellent  guidance for the work remaining in our battle against sex discrimination.  
1981-240	1981	Even though we have made progress, much remains on the agenda for women. I  remain committed to the Equal Rights Amendment and will continue to work  for its passage. It is essential to the goal of bringing America's women  fully into the mainstream of American life that the ERA be ratified.  
1981-241	1981	The efforts begun for women in employment, business and education should be  continued and strengthened. Money should be available to states to  establish programs to help the victims of domestic violence. Congress  should pass a national health care plan and a welfare reform program, and  these measures should reflect the needs of women.  
1981-242	1981	The talents of women should continue to be used to the fullest inside and  outside of government, and efforts should continue to see that they have  the widest range of opportunities and options.  
1981-243	1981	HANDICAPPED  
1981-244	1981	I hope that my Administration will be remembered in this area for leading  the way toward full civil rights for handicapped Americans. When I took  office, no federal agency had yet issued 504 regulations. As I leave  office, this first step by every major agency and department in the federal  government is almost complete. But it is only a first step. The years ahead  will require steadfast dedication by the President to protect and promote  these precious rights in the classroom, in the workplace, and in all public  facilities so that handicapped individuals may join the American mainstream  and contribute to the fullest their resources and talents to our economic  and social life.  
1981-245	1981	Just as we supported, in an unprecedented way, the civil rights of disabled  persons in schools and in the workplace, other initiatives in health  prevention, such as our immunization and nutrition programs for young  children and new intense efforts to reverse spinal cord injury, must  continue so that the incidence of disability continues to decline.  
1981-246	1981	This year is the U.N.-declared International Year of Disabled Persons. We  are organizing activities to celebrate and promote this important  commemorative year within the government as well as in cooperation with  private sector efforts in this country and around the world. The  International Year will give our country the opportunity to recognize the  talents and capabilities of our fellow citizens with disabilities. We can  also share our rehabilitation and treatment skills with other countries and  learn from them as well. I am proud that the United States leads the world  in mainstreaming and treating disabled people. However, we have a long way  to go before all psychological and physical barriers to disabled people are  torn down and they can be full participants in our American way of life. We  must pledge our full commitment to this goal during the International Year.  
1981-247	1981	FAMILIES  
1981-248	1981	Because of my concern for American families, my Administration convened  last year the first White House Conference on Families which involved seven  national hearings, over 506 state and local events, three White House  Conferences, and the direct participation of more than 125,000 citizens.  The Conference reaffirmed the centrality of families in our lives and  nation but documented problems American families face as well. We also  established the Office of Families within the Department of Health and  Human Services to review government policies and programs that affect  families.  
1981-249	1981	I expect the departments and agencies within the executive branch of the  Federal government as well as Members of Congress, corporate and business  leaders, and State and local officials across the country, to study closely  the recommendations of the White House Conference and implement them  appropriately. As public policy is developed and implemented by the Federal  government, cognizance of the work of the Conference should be taken as a  pragmatic and essential step.  
1981-250	1981	The Conference has done a good job of establishing an agenda for action to  assure that the policies of the Federal government are more sensitive in  their impact on families. I hope the Congress will review and seriously  consider the Conference's recommendations.  
1981-251	1981	OLDER AMERICANS  
1981-252	1981	My Administration has taken great strides toward solving the difficult  problems faced by older Americans. Early in my term we worked successfully  with the Congress to assure adequate revenues for the Social Security Trust  Funds. And last year the strength of the Social Security System was  strengthened by legislation I proposed to permit borrowing among the  separate trust funds. I have also signed into law legislation prohibiting  employers from requiring retirement prior to age 70, and removing mandatory  retirement for most Federal employees. In addition, my Administration  worked very closely with Congress to amend the Older Americans Act in a way  that has already improved administration of its housing, social services,  food delivery, and employment programs.  
1981-253	1981	This year, I will be submitting to Congress a budget which again  demonstrates my commitment to programs for the elderly. It will include, as  my previous budgets have, increased funding for nutrition, senior centers  and home health care, and will focus added resources on the needs of older  Americans.  
1981-254	1981	With the 1981 White House Conference on Aging approaching, I hope the new  Administration will make every effort to assure an effective and useful  conference. This Conference should enable older Americans to voice their  concerns and give us guidance in our continued efforts to ensure the  quality of life so richly deserved by our senior citizens.  
1981-255	1981	REFUGEES  
1981-256	1981	We cannot hope to build a just and humane society at home if we ignore the  humanitarian claims of refugees, their lives at stake, who have nowhere  else to turn. Our country can be proud that hundreds of thousands of people  around the world would risk everything they have--including their own  lives--to come to our country.  
1981-257	1981	This Administration initiated and implemented the first comprehensive  reform of our refugee and immigration policies in over 25 years. We also  established the first refugee coordination office in the Department of  State under the leadership of a special ambassador and coordinator for  refugee affairs and programs. The new legislation and the coordinator's  office will bring common sense and consolidation to our Nation's previously  fragmented, inconsistent, and in many ways, outdated, refugee and  immigration policies.  
1981-258	1981	With the unexpected arrival of thousands of Cubans and Haitians who sought  refuge in our country last year, outside of our regular immigration and  refugee admissions process, our country and its government were tested in  being compassionate and responsive to a major human emergency. Because we  had taken steps to reorganize our refugee programs, we met that test  successfully. I am proud that the American people responded to this crisis  with their traditional good will and hospitality. Also, we would never have  been able to handle this unprecedented emergency without the efforts of the  private resettlement agencies who have always been there to help refugees  in crises.  
1981-259	1981	Immigrants to this country always contribute more toward making our country  stronger than they ever take from the system. I am confident that the  newest arrivals to our country will carry on this tradition.  
1981-260	1981	While we must remain committed to aiding and assisting those who come to  our shores, at the same time we must uphold our immigration and refugee  policies and provide adequate enforcement resources. As a result of our  enforcement policy, the illegal flow from Cuba has been halted and an  orderly process has been initiated to make certain that our refugee and  immigration laws are honored.  
1981-261	1981	This year the Select Commission on Immigration and Refugee Policy will  complete its work and forward its advice and recommendations. I hope that  the recommendations will be carefully considered by the new Administration  and the Congress, for it is clear that we must take additional action to  keep our immigration policy responsive to emergencies and ever changing  times.  
1981-262	1981	VETERANS  
1981-263	1981	This country and its leadership has a continuing and unique obligation to  the men and women who served their nation in the armed forces and help  maintain or restore peace in the world.  
1981-264	1981	My commitment to veterans, as evidenced by my record, is characterized by a  conscientious and consistent emphasis in these general areas:  
1981-265	1981	First, we have worked to honor the Vietnam veteran. During my  Administration, and under the leadership of VA Administrator Max Cleland, I  was proud to lead our country in an overdue acknowledgement of our Nation's  gratitude to the men and women who served their country during the bitter  war in Southeast Asia. Their homecoming was deferred and seemed doomed to  be ignored. Our country has matured in the last four years and at long last  we were able to separate the war from the warrior and honor these veterans.  But with our acknowledgement of their service goes an understanding that  some Vietnam veterans have unique needs and problems.  
1981-266	1981	My Administration was able to launch a long sought after psychological  readjustment and outreach program, unprecedented in its popularity,  sensitivity and success. This program must be continued. The Administration  has also grappled with the difficult questions posed by some veterans who  served in Southeast Asia and were exposed to potentially harmful  substances, including the herbicide known as Agent Orange. We have launched  scientific inquiries that should answer many veterans' questions about  their health and should provide the basis for establishing sound  compensation policy. We cannot rest until their concerns are dealt with in  a sensitive, expeditious and compassionate fashion.  
1981-267	1981	Second, we have focused the VA health care system in the needs of the  service-connected disabled veteran. We initiated and are implementing the  first reform of the VA vocational rehabilitation system since its inception  in 1943. Also, my Administration was the first to seek a cost-of-living  increase for the recipients of VA compensation every year. My last budget  also makes such a request. The Administration also launched the Disabled  Veterans Outreach Program in the Department of Labor which has successfully  placed disabled veterans in jobs. Services provided by the VA health care  system will be further targeted to the special needs of disabled veterans  during the coming year.  
1981-268	1981	Third, the VA health care system, the largest in the free world, has  maintained its independence and high quality during my Administration. We  have made the system more efficient and have therefore treated more  veterans than ever before by concentrating on out-patient care and through  modern management improvements. As the median age of the American veteran  population increases, we must concentrate on further changes within the VA  system to keep it independent and to serve as a model to the nation and to  the world as a center for research, treatment and rehabilitation.  
1981-269	1981	Government Assistance  
1981-270	1981	GENERAL AID TO STATE AND LOCAL GOVERNMENTS  
1981-271	1981	Since taking office, I have been strongly committed to strengthening the  fiscal and economic condition of our Nation's State and local governments.  I have accomplished this goal by encouraging economic development of local  communities, and by supporting the General Revenue Sharing and other  essential grant-in-aid programs.  
1981-272	1981	GRANTS-IN-AID TO STATES AND LOCALITIES  
1981-273	1981	During my Administration, total grants-in-aid to State and local  governments have increased by more than 40 percent, from $68 billion in  Fiscal Year 1977 to $96 billion in Fiscal Year 1981. This significant  increase in aid has allowed States and localities to maintain services that  are essential to their citizens without imposing onerous tax burdens. It  also has allowed us to establish an unprecedented partnership between the  leaders of the Federal government and State and local government elected  officials.  
1981-274	1981	GENERAL REVENUE SHARING  
1981-275	1981	Last year Congress enacted legislation that extends the General Revenue  Sharing program for three more years. This program is the cornerstone of  our efforts to maintain the fiscal health of our Nation's local government.  It will provide $4.6 billion in each of the next three years to cities,  counties and towns. This program is essential to the continued ability of  our local governments to provide essential police, fire and sanitation  services.  
1981-276	1981	This legislation renewing GRS will be the cornerstone of  Federal-State-local government relations in the 1980's. This policy will  emphasize the need for all levels of government to cooperate in order to  meet the needs of the most fiscally strained cities and counties, and also  will emphasize the important role that GRS can play in forging this  partnership. I am grateful that Congress moved quickly to assure that our  Nation's localities can begin the 1980's in sound fiscal condition.  
1981-277	1981	COUNTER-CYCLICAL ASSISTANCE  
1981-278	1981	Last year, I proposed that Congress enact a $1 billion counter-cyclical  fiscal assistance program to protect States and localities from unexpected  changes in the national economy. This program unfortunately was not enacted  by the [full] Congress. I, therefore, have not included funding for  counter-cyclical aid in my Fiscal Year 1982 budget. Nevertheless, I urge  Congress to enact a permanent stand-by counter-cyclical program, so that  States and cities can be protected during the next economic downturn.  
1981-279	1981	URBAN POLICY  
1981-280	1981	Three years ago, I proposed the Nation's first comprehensive urban policy.  That policy involved more than one hundred improvements in existing Federal  programs, four new Executive Orders and nineteen pieces of urban-oriented  legislation. With Congress' cooperation, sixteen of these bills have now  been signed into law.  
1981-281	1981	ECONOMIC DEVELOPMENT  
1981-282	1981	One of the principal goals of my domestic policy has been to strengthen the  private sector economic base of our Nation's economically troubled urban  and rural areas. With Congress' cooperation, we have substantially expanded  the Federal government's economic development programs and provided new tax  incentives for private investment in urban and rural communities. These  programs have helped many communities to attract new private sector jobs  and investments and to retain the jobs and investments that already are in  place.  
1981-283	1981	When I took office, the Federal government was spending less than $300  million annually on economic development programs, and only $60 million of  those funds in our Nation's urban areas. Since that time, we have created  the Urban Development Action Grant (UDAG) program and substantially  expanded the economic development programs in the Commerce Department. My  FY 1982 budget requests more than $1.5 billion for economic development  grants, loans and interest subsidies and almost $1.5 billion for loan  guarantees. Approximately 60 percent of these funds will be spent in our  Nation's urban areas. In addition, we have extended the 10 percent  investment credit to include rehabilitation of existing industrial  facilities as well as new construction.  
1981-284	1981	I continue to believe that the development of private sector investment and  jobs is the key to revitalizing our Nation's economically depressed urban  and rural areas. To ensure that the necessary economic development goes  forward, the Congress must continue to provide strong support for the UDAG  program and the programs for the Economic Development Administration. Those  programs provide a foundation for the economic development of our Nation in  the 1980's.  
1981-285	1981	COMMUNITY DEVELOPMENT  
1981-286	1981	The partnership among Federal, State and local governments to revitalize  our Nation's communities has been a high priority of my Administration.  When I took office, I proposed a substantial expansion of the Community  Development Block Grant (CDBG) program and the enactment of a new $400  million Urban Development Action Grant (UDAG) program. Both of these  programs have provided essential community and economic development  assistance to our Nation's cities and counties.  
1981-287	1981	Last year, Congress reauthorized both the CDBG and UDAG programs. The CDBG  program was reauthorized for three more years with annual funding increases  of $150 million, and the UDAG program was extended for three years at the  current funding level of $675 million annually. My 1982 budget requests  full funding for both of these programs. These actions should help our  Nation's cities and counties to continue the progress they have made in the  last three years.  
1981-288	1981	NEIGHBORHOODS  
1981-289	1981	During my Administration we have taken numerous positive steps to achieve a  full partnership of neighborhood organizations and government at all  levels. We have successfully fought against red lining and housing  discrimination. We created innovative Self Help funding and technical  resource transfer mechanisms. We have created unique methods of access for  neighborhood organizations to have a participating role in Federal and  State government decision-making. Neighborhood based organizations are the  threshold of the American community.  
1981-290	1981	The Federal government will need to develop more innovative and practical  ways for neighborhood based organizations to successfully participate in  the identification and solution of local and neighborhood concerns. Full  partnership will only be achieved with the knowing participation of leaders  of government, business, education and unions. Neither state nor Federal  solutions imposed from on high will suffice. Neighborhoods are the fabric  and soul of this great land. Neighborhoods define the weave that has been  used to create a permanent fabric. The Federal government must take every  opportunity to provide access and influence to the individuals and  organizations affected at the neighborhood level.  
1981-291	1981	Rural Policy  
1981-292	1981	Since the beginning of my Administration, I have been committed to  improving the effectiveness with which the Federal government deals with  the problems and needs of a rapidly changing rural America. The rapid  growth of some rural areas has placed a heavy strain on communities and  their resources. There are also persistent problems of poverty and economic  stagnation in other parts of rural America. Some rural areas continue to  lose population, as they have for the past several decades.  
1981-293	1981	In December, 1979, I announced the Small Community and Rural Development  Policy. It was the culmination of several years' work and was designed to  address the varying needs of our rural population. In 1980, my  Administration worked with the Congress to pass the Rural Development  Policy Act of 1980, which when fully implemented will allow us to meet the  needs of rural people and their communities more effectively and more  efficiently.  
1981-294	1981	As a result of the policy and the accompanying legislation, we have:  
1981-295	1981	--Created the position of Under Secretary of Agriculture for Small  Community and Rural Development to provide overall leadership.  
1981-296	1981	--Established a White House Working Group to assist in the implementation  of the policy.  
1981-297	1981	--Worked with more than 40 governors to form State rural development  councils to work in partnership with the White House Working Group, and the  Federal agencies, to better deliver State and Federal programs to rural  areas.  
1981-298	1981	--Directed the White House Working Group to annually review existing and  proposed policies, programs, and budget levels to determine their adequacy  in meeting rural needs and the fulfilling of the policy's objectives and  principles.  
1981-299	1981	This effort on the part of my Administration and the Congress has resulted  in a landmark policy. For the first time, rural affairs has received the  prominence it has always deserved. It is a policy that can truly help  alleviate the diverse and differing problems rural America will face in the  1980's.  
1981-300	1981	With the help and dedication of a great many people around the country who  are concerned with rural affairs, we have constructed a mechanism for  dealing effectively with rural problems. There is now a great opportunity  to successfully combine Federal efforts with the efforts of rural community  leaders and residents. It is my hope this spirit of cooperation and record  of accomplishment will be continued in the coming years.  
1981-301	1981	CONSUMERS  
1981-302	1981	In September, 1979, I signed an Executive Order designed to strengthen and  coordinate Federal consumer programs and to establish procedures to improve  and facilitate consumer participation in government decision-making. Forty  Federal agencies have adopted programs to comply with the requirements of  the Order. These programs will improve complaint handling, provide better  information to consumers, enhance opportunities for public participation in  government proceedings, and assure that the consumer point of view is  considered in all programs, policies, and regulations.  
1981-303	1981	While substantial progress has been made in assuring a consumer presence in  Federal agencies, work must continue to meet fully the goals of the  Executive Order. Close monitoring of agency compliance with the  requirements of the Order is necessary. Continued evaluation to assure that  the programs are effective and making maximum use of available resources is  also essential. As a complement to these initiatives, efforts to provide  financial assistance in regulatory proceedings to citizen groups, small  businesses, and others whose participation is limited by their economic  circumstances must continue to be pursued.  
1981-304	1981	It is essential that consumer representatives in government pay particular  attention to the needs and interests of low-income consumers and  minorities. The Office of Consumer Affairs' publication, "People Power:  What Communities Are Doing to Counter Inflation," catalogues some of the  ways that government and the private sector can assist the less powerful in  our society to help themselves. New ways should be found to help foster  this new people's movement which is founded on the principle of  self-reliance.  
1981-305	1981	Science and Technology  
1981-306	1981	Science and technology contribute immeasurably to the lives of all  Americans. Our high standard of living is largely the product of the  technology that surrounds us in the home or factory. Our good health is due  in large part to our ever increasing scientific understanding. Our national  security is assured by the application pate science and technology will  bring.  
1981-307	1981	The Federal government has a special role to play in science and  technology. Although the fruits of scientific achievements surround us, it  is often difficult to predict the benefits that will arise from a given  scientific venture. And these benefits, even if predictable, do not usually  lead to ownership rights. Accordingly, the Government has a special  obligation to support science as an investment in our future.  
1981-308	1981	My Administration has sought to reverse a decade-long decline in funding.  Despite the need for fiscal restraint, real support of basic research has  grown nearly 11% during my term in office. And, my Administration has  sought to increase the support of long-term research in the variety of  mission agencies. In this way, we can harness the American genius for  innovation to meet the economic, energy, health, and security challenges  that confront our nation.  
1981-309	1981	--International Relations and National Security. Science and technology  are becoming increasingly important elements of our national security and  foreign policies. This is especially so in the current age of sophisticated  defense systems and of growing dependence among all countries on modern  technology for all aspects of their economic strength. For these reasons,  scientific and technological considerations have been integral elements of  the Administration's decision-making on such national security and foreign  policy issues as the modernization of our strategic weaponry, arms control,  technology transfer, the growing bilateral relationship with China, and our  relations with the developing world.  
1981-310	1981	Four themes have shaped U.S. policy in international scientific and  technological cooperation: pursuit of new international initiatives to  advance our own research and development objectives; development and  strengthening of scientific exchange to bridge politically ideological, and  cultural divisions between this country and other countries; formulation of  programs and institutional relations to help developing countries use  science and technology beneficially; and cooperation with other nations to  manage technologies with local impact. At my direction, my Science and  Technology Adviser has actively pursued international programs in support  of these four themes. We have given special attention to scientific and  technical relations with China, to new forms of scientific and technical  cooperation with Japan, to cooperation with Mexico, other Latin American  and Caribbean countries and several states in Black America, and to the  proposed Institute for Scientific and Technological Cooperation.  
1981-311	1981	In particular our cooperation with developing countries reflects the  importance that each of them has placed on the relationship between  economic growth and scientific and technological capability. It also  reflects their view that the great strength of the U.S. in science and  technology makes close relations with the U.S. technical community an  especially productive means of enhancing this capability. Scientific and  technological assistance is a key linkage between the U.S. and the  developing world, a linkage that has been under-utilized in the past and  one which we must continue to work to strengthen.  
1981-312	1981	--Space Policy. The Administration has established a framework for a  strong and evolving space program for the 1980's.  
1981-313	1981	The Administration's space policy reaffirmed the separation of military  space systems and the open civil space program, and at the same time,  provided new guidance on technology transfer between the civil and military  programs. The civil space program centers on three basic tenets: First, our  space policy will reflect a balanced strategy of applications, science, and  technology development. Second, activities will be pursued when they can be  uniquely or more efficiently accomplished in space. Third, a premature  commitment to a high challenge, space-engineering initiative of the  complexity of Apollo is inappropriate. As the Shuttle development phases  down, however, there will be added flexibility to consider new space  applications, space science and new space exploration activities.  
1981-314	1981	--Technology Development. The Shuttle dominates our technology development  effort and correctly so. It represents one of the most sophisticated  technological challenges ever undertaken, and as a result, has encountered  technical problems. Nonetheless, the first manned orbital flight is now  scheduled for March, 1981. I have been pleased to support strongly the  necessary funds for the Shuttle throughout my Administration.  
1981-315	1981	--Space Applications. Since 1972, the U.S. has conducted experimental  civil remote sensing through Landsat satellites, thereby realizing many  successful applications. Recognizing this fact, I directed the  implementation of an operational civil land satellite remote sensing  system, with the operational management responsibility in Commerce's  National Oceanic and Atmospheric Administration. In addition, because ocean  observations from space can meet common civil and military data  requirements, a National Oceanic Satellite System has been proposed as a  major FY 1981 new start.  
1981-316	1981	--Space Science Exploration. The goals of this Administration's policy in  space science have been to: (1) continue a vigorous program of planetary  exploration to understand the origin and evolution of the solar system; (2)  utilize the space telescope and free-flying satellites to usher in a new  era of astronomy; (3) develop a better understanding of the sun and its  interaction with the terrestrial environment; and (4) utilize the Shuttle  and Spacelab to conduct basic research that complements earth-based life  science investigations.  
1981-317	1981	DISTRICT OF COLUMBIA  
1981-318	1981	Washington, D.C., is home to both the Federal Government and to more than  half a million American citizens. I have worked to improve the relationship  between the Federal establishment and the Government of the District of  Columbia in order to further the goals and spirit of home rule. The City  controls more of its own destiny than was the case four years ago. Yet,  despite the close cooperation between my Administration and that of Mayor  Barry, we have not yet seen the necessary number of states ratify the  Constitutional Amendment granting full voting representation in the  Congress to the citizens of this city. It is my hope that this inequity  will be rectified. The country and the people who inhabit Washington  deserve no less.  
1981-319	1981	THE ARTS  
1981-320	1981	The arts are a precious national resource.  
1981-321	1981	Federal support for the arts has been enhanced during my Administration by  expanding government funding and services to arts institutions, individual  artists, scholars, and teachers through the National Endowment for the  Arts. We have broadened its scope and reach to a more diverse population.  We have also reactivated the Federal Council on the Arts and Humanities.  
1981-322	1981	It is my hope that during the coming years the new Administration and the  Congress will:  
1981-323	1981	--Continue support of institutions promoting development and understanding  of the arts;  
1981-324	1981	--Encourage business participants in a comprehensive effort to achieve a  truly mixed economy of support for the arts;  
1981-325	1981	--Explore a variety of mechanisms to nurture the creative talent of our  citizens and build audiences for their work;  
1981-326	1981	--Support strong, active National Endowments for the Arts;  
1981-327	1981	--Seek greater recognition for the rich cultural tradition of the nation's  minorities;  
1981-328	1981	--Provide grants for the arts in low-income neighborhoods.  
1981-329	1981	THE HUMANITIES  
1981-330	1981	In recently reauthorizing Federal appropriations for the National Endowment  for the Humanities, the Congress has once again reaffirmed that "the  encouragement and support of national progress and scholarship in the  humanities . . . while primarily a matter for private and local initiative,  is also an appropriate matter of concern to the Federal Government" and  that "a high civilization must not limit its efforts to science and  technology alone but must give full value and support to the other great  branches of man's scholarly and cultural activity in order to achieve a  better understanding of the past, a better analysis of the present, and a  better view of the future."  
1981-331	1981	I believe we are in agreement that the humanities illuminate the values  underlying important personal, social, and national questions raised in our  society by its multiple links to and increasing dependence on technology,  and by the diverse heritage of our many regions and ethnic groups. The  humanities cast light on the broad issue of the role in a society of men  and women of imagination and energy--those individuals who through their  own example define "the spirit of the age," and in so doing move nations.  Our Government's support for the humanities, within the framework laid down  by the Congress, is a recognition of their essential nourishment of the  life of the mind and vital enrichment of our national life.  
1981-332	1981	I will be proposing an increase in funding this year sufficient to enable  the Endowment to maintain the same level of support offered our citizens in  Fiscal Year 1981.  
1981-333	1981	In the allocation of this funding, special emphasis will be given to:  
1981-334	1981	--Humanities education in the nation's schools, in response to the great  needs that have arisen in this area;  
1981-335	1981	--Scholarly research designed to increase our understanding of the  cultures, traditions, and historical forces at work in other nations and in  our own;  
1981-336	1981	--Drawing attention to the physical disintegration of the raw material of  our cultural heritage--books, manuscripts, periodicals, and other  documents--and to the development of techniques to prevent the destruction  and to preserve those materials; and  
1981-337	1981	--The dissemination of quality programming in the humanities to  increasingly large American audiences through the use of radio and  television.  
1981-338	1981	The dominant effort in the Endowment's expenditures will be a commitment to  strengthen and promulgate scholarly excellence and achievement in work in  the humanities in our schools, colleges, universities, libraries, museums  and other cultural institutions, as well as in the work of individual  scholars or collaborative groups engaged in advanced research in the  humanities.  
1981-339	1981	In making its grants the Endowment will increase its emphasis on techniques  which stimulate support for the humanities from non-Federal sources, in  order to reinforce our tradition of private philanthropy in this field, and  to insure and expand the financial viability of our cultural institutions  and life.  
1981-340	1981	INSULAR AREAS  
1981-341	1981	I have been firmly committed to self-determination for Puerto Rico, the  Virgin Islands, Guam, American Samoa and the Northern Mariana Islands, and  have vigorously supported the realization of whatever political status  aspirations are democratically chosen by their peoples. This principle was  the keystone of the comprehensive territorial policy I sent the Congress  last year. I am pleased that most of the legislative elements of that  policy were endorsed by the 96th Congress.  
1981-342	1981	The unique cultures, fragile economies, and locations of our Caribbean and  Pacific Islands are distinct assets to the United States which require the  sensitive application of policy. The United States Government should pursue  initiatives begun by my Administration and the Congress to stimulate  insular economic development; enhance treatment under Federal programs  eliminating current inequities; provide vitally needed special assistance  and coordinate and rationalize policies. These measures will result in  greater self-sufficiency and balanced growth. In particular, I hope that  the new Congress will support funding for fiscal management, comprehensive  planning and other technical assistance for the territories, as well as  create the commission I have proposed to review the applicability of all  Federal laws to the insular areas and make recommendations for appropriate  modification.  
1981-343	1981	IV. REMOVING GOVERNMENTAL WASTE AND INEFFICIENCY  
1981-344	1981	One of my major commitments has been to restore public faith in our Federal  government by cutting out waste and inefficiency. In the past four years,  we have made dramatic advances toward this goal, many of them previously  considered impossible to achieve. Where government rules and operations  were unnecessary, they have been eliminated, as with airline, rail,  trucking and financial deregulation. Where government functions are needed,  they have been streamlined, through such landmark measures as the Civil  Service Reform Act of 1978. I hope that the new administration and the  Congress will keep up the momentum we have established for effective and  responsible change in this area of crucial public concern.  
1981-345	1981	CIVIL SERVICE REFORM  
1981-346	1981	In March 1978, I submitted the Civil Service Reform Act to Congress. I  called it the centerpiece of my efforts to reform and reorganize the  government. With bipartisan support from Congress, the bill passed, and I  am pleased to say that implementation is running well ahead of the  statutory schedule. Throughout the service, we are putting into place the  means to assure that reward and retention are based on performance and not  simply on length of time on the job. In the first real test of the Reform  Act, 98 percent of the eligible top-level managers joined the Senior  Executive Service, choosing to relinquish job protections for the challenge  and potential reward of this new corps of top executives. Though the Act  does not require several of its key elements to be in operation for another  year, some Federal agencies already have established merit pay systems for  GS-13-15 managers, and most agencies are well on their way to establishing  new performance standards for all their employees. All have paid out, or  are now in the process of paying out, performance bonuses earned by  outstanding members of the Senior Executive Service. Dismissals have  increased by 10 percent, and dismissals specifically for inadequate job  performance have risen 1500 percent, since the Act was adopted. Finally, we  have established a fully independent Merit Systems Protection Board and  Special Counsel to protect the rights of whistle-blowers and other Federal  employees faced with threats to their rights.  
1981-347	1981	In 1981, civil service reform faces critical challenges, all agencies must  have fully functioning performance appraisal systems for all employees, and  merit pay systems for compensating the government's 130,000 GS-13-15  managers. Performance bonuses for members of the Senior Executive Service  will surely receive scrutiny. If this attention is balanced and  constructive, it can only enhance the chances for ultimate success of our  bipartisan commitment to the revolutionary and crucial "pay for  performance" concept.  
1981-348	1981	REGULATORY REFORM  
1981-349	1981	During the past four years we have made tremendous progress in regulatory  reform. We have discarded old economic regulations that prevented  competition and raised consumer costs, and we have imposed strong  management principles on the regulatory programs the country needs, cutting  paperwork and other wasteful burdens. The challenge for the future is to  continue the progress in both areas without crippling vital health and  safety programs.  
1981-350	1981	Our economic deregulation program has achieved major successes in five  areas:  
1981-351	1981	Airlines: The Airline Deregulation Act is generating healthy competition,  saving billions in fares, and making the airlines more efficient. The Act  provides that in 1985 the CAB itself will go out of existence.  
1981-352	1981	Trucking: The trucking deregulation bill opens the industry to competition  and allows truckers wide latitude on the routes they drive and the goods  they haul. The bill also phases out most of the old law's immunity for  setting rates. The Congressional Budget Office estimates these reforms will  save as much as $8 billion per year and cut as much as half a percentage  point from the inflation rate.  
1981-353	1981	Railroads: Overregulation has stifled railroad management initiative,  service, and competitive pricing. The new legislation gives the railroads  the freedom they need to rebuild a strong, efficient railroad industry.  
1981-354	1981	Financial Institutions: With the help of the Congress, over the past four  years we have achieved two major pieces of financial reform legislation,  legislation which has provided the basis for the most far-reaching changes  in the financial services industry since the 1930's. The International  Banking Act of 1978 was designed to reduce the advantages that foreign  banks operating in the United States possessed in comparison to domestic  banks. The Depository Institutions Deregulation and Monetary Control Act,  adopted last March, provides for the phased elimination of a variety of  anti-competitive barriers to financial institutions and freedom to offer  services to and attract the savings of consumers, especially small savers.  
1981-355	1981	Recently, I submitted to the Congress my Administration's recommendations  for the phased liberalization of restrictions on geographic expansion by  commercial banks. Last year the Administration and financial regulatory  agencies proposed legislation to permit the interstate acquisition of  failing depository institutions. In view of the difficult outlook for some  depository institutions I strongly urge the Congress to take prompt  favorable action on the failing bank legislation.  
1981-356	1981	Telecommunications: While Congress did not pass legislation in this area,  the Federal Communications Commission has taken dramatic action to open all  aspects of communications to competition and to eliminate regulations in  the areas where competition made them obsolete. The public is benefitting  from an explosion of competition and new services.  
1981-357	1981	While these initiatives represent dramatic progress in economic  deregulation, continued work is needed. I urge Congress to act on  communications legislation and to consider other proposed deregulation  measures, such as legislation on the bus industry. In addition, the  regulatory commissions must maintain their commitment to competition as the  best regulator of all.  
1981-358	1981	The other part of my reform program covers the regulations that are needed  to protect the health, safety, and welfare of our citizens. For these  regulations, my Administration has created a management program to cut  costs without sacrificing goals. Under my Executive Order 12044, we  required agencies to analyze the costs of their major new rules and  consider alternative approaches, such as performance standards and  voluntary codes, that may make rules less costly and more flexible. We  created the Regulatory Analysis Review Group in the White House to analyze  the most costly proposed new rules and find ways to improve them. The  Regulatory Council was established to provide the first Government-wide  listing of upcoming rules and eliminate overlapping and conflicting  regulations. Agencies have launched "sunset" programs to weed out outmoded  old regulations. We have acted to encourage public participation in  regulatory decision-making.  
1981-359	1981	These steps have already saved billions of dollars in regulatory costs and  slashed thousands of outmoded regulations. We are moving steadily toward a  regulatory system that provides needed protections fairly, predictably, and  at minimum cost.  
1981-360	1981	I urge Congress to continue on this steady path and resist the simplistic  solutions that have been proposed as alternatives. Proposals like  legislative veto and increased judicial review will add another layer to  the regulatory process, making it more cumbersome and inefficient. The  right approach to reform is to improve the individual statutes, where they  need change, and to ensure that the regulatory agencies implement those  statutes sensibly.  
1981-361	1981	PAPERWORK REDUCTION  
1981-362	1981	The Federal Government imposes a huge paperwork burden on business, local  government, and the private sector. Many of these forms are needed for  vital government functions, but others are duplicative, overly complex or  obsolete.  
1981-363	1981	During my Administration we cut the paperwork burden by 15 percent, and we  created procedures to continue this progress. The new Paperwork Reduction  Act centralizes, in OMB, oversight of all agencies' information  requirements and strengthens OMB's authority to eliminate needless forms.  The "paperwork budget" process, which I established by executive order,  applies the discipline of the budget process to the hours of reporting time  imposed on the public, forcing agencies to scrutinize all their forms each  year. With effective implementation, these steps should allow further,  substantial paperwork cuts in the years ahead.  
1981-364	1981	TIGHTENING STANDARDS FOR GOVERNMENTAL EFFICIENCY AND INTEGRITY  
1981-365	1981	To develop a foundation to carry out energy policy, we consolidated  scattered energy programs and launched the Synthetic Fuels Corporation; to  give education the priority it deserves and at the same time reduce HHS to  more manageable size, I gave education a seat at the Cabinet table, to  create a stronger system for attacking waste and fraud, I reorganized audit  and investigative functions by putting an Inspector General in major  agencies. Since I took office, we have submitted 14 reorganization  initiatives and had them all approved by Congress. We have saved hundreds  of millions of dollars through the adoption of businesslike cash management  principles and set strict standards for personal financial disclosure and  conflict of interest avoidance by high Federal officials.  
1981-366	1981	To streamline the structure of the government, we have secured approval of  14 reorganization initiatives, improving the efficiency of the most  important sectors of the government, including energy, education, and civil  rights enforcement. We have eliminated more than 300 advisory committees as  well as other agencies, boards and commissions which were obsolete or  ineffective. Independent Inspectors General have been appointed in major  agencies to attack fraud and waste. More than a billion dollars of  questionable transactions have been identified through their audit  activities.  
1981-367	1981	The adoption of business-like cash management and debt collection  initiatives will save over $1 billion, by streamlining the processing of  receipts, by controlling disbursements more carefully, and by reducing idle  cash balances. Finally this Administration has set strict standards for  personal financial disclosure and conflict of interest avoidance by high  Federal officials, to elevate the level of public trust in the government.  
1981-368	1981	V. PROTECTING BASIC RIGHTS AND LIBERTIES  
1981-369	1981	I am extremely proud of the advances we have made in ensuring equality and  protecting the basic freedoms of all Americans.  
1981-370	1981	--The Equal Employment Opportunity Commission (EEOC) and the Office of  Federal Contract Compliance (OFCCP) have been reorganized and strengthened  and a permanent civil rights unit has been established in OMB.  
1981-371	1981	--To avoid fragmented, inconsistent and duplicative enforcement of civil  rights laws, three agencies have been given coordinative and  standard-setting responsibilities in discrete areas: EEOC for all  employment-related activities, HUD for all those relating to housing, and  the Department of Justice for all other areas.  
1981-372	1981	--With the enactment of the Right to Financial Privacy Act and a bill  limiting police search of newsrooms, we have begun to establish a sound,  comprehensive, privacy program.  
1981-373	1981	Ratification of the Equal Rights Amendment must be aggressively pursued.  Only one year remains in which to obtain ratification by three additional  states.  
1981-374	1981	The Congress must give early attention to a number of important bills which  remain. These bills would:  
1981-375	1981	--strengthen the laws against discrimination in housing. Until it is  enacted, the 1968 Civil Rights Act's promise of equal access to housing  will remain unfulfilled;  
1981-376	1981	--establish a charter for the FBI and the intelligence agencies. The  failure to define in law the duties and responsibilities of these agencies  has made possible some of the abuses which have occurred in recent years;  
1981-377	1981	--establish privacy safeguards for medical research, bank, insurance, and  credit records; and provide special protection for election fund transfer  systems.  
1981-378	1981	EQUAL RIGHTS AMENDMENT  
1981-379	1981	I remain committed as strongly as possible to the ratification of the Equal  Rights Amendment.  
1981-380	1981	As a result of our efforts in 1978, the Equal Rights Amendment's deadline  for ratification was extended for three years. We have now one year and  three States left. We cannot afford any delay in marshalling our resources  and efforts to obtain the ratification of those three additional States.  
1981-381	1981	Although the Congress has no official role in the ratification process at  this point, you do have the ability to affect public opinion and the  support of State Legislators for the Amendment. I urge Members from States  which have not yet ratified the Equal Rights Amendment to use their  influence to secure ratification. I will continue my own efforts to help  ensure ratification of the Equal Rights Amendment.  
1981-382	1981	MARTIN LUTHER KING, JR.  
1981-383	1981	Dr. Martin Luther King, Jr. led this Nation's effort to provide all its  citizens with civil rights and equal opportunities. His commitment to human  rights, peace and non-violence stands as a monument to his humanity and  courage. As one of our Nation's most outstanding leaders, it is appropriate  that his birthday be commemorated as a national holiday. I hope the  Congress will enact legislation this year that will achieve this goal.  
1981-384	1981	FAIR HOUSING  
1981-385	1981	The Fair Housing Act Amendments of 1980 passed the House of Representatives  by an overwhelming bipartisan majority only to die in the Senate at the  close of the 96th Congress. The leaders of both parties have pledged to  make the enactment of fair housing legislation a top priority of the  incoming Congress. The need is pressing and a strengthened federal  enforcement effort must be the primary method of resolution.  
1981-386	1981	CRIMINAL CODE  
1981-387	1981	The Federal criminal laws are often archaic, frequently contradictory and  imprecise, and clearly in need of revision and codification. The new  Administration should continue the work which has been begun to develop a  Federal criminal code which simplifies and clarifies our criminal laws,  while maintaining our basic civil liberties and protections.  
1981-388	1981	PRIVACY  
1981-389	1981	As our public and private institutions collect more and more information  and as communications and computer technologies advance, we must act to  protect the personal privacy of our citizens.  
1981-390	1981	In the past four years we acted on the report of the Privacy Commission and  established a national privacy policy. We worked with Congress to pass  legislation restricting wiretaps and law enforcement access to bank records  and to reporters' files. We reduced the number of personal files held by  the government and restricted the transfer of personal information among  Federal agencies. We also worked with the Organization for Economic  Cooperation and Development to establish international guidelines to  protect the privacy of personal information that is transferred across  borders.  
1981-391	1981	VI. PROTECTING AND DEVELOPING OUR NATURAL RESOURCES  
1981-392	1981	Two of our Nation's most precious natural resources are our environment and  our vast agricultural capacity. From the beginning of my Administration, I  have worked with the Congress to enhance and protect, as well as develop  our natural resources. In the environmental areas, I have been especially  concerned about the importance of balancing the need for resource  development with preserving a clean environment, and have taken numerous  actions to foster this goal. In the agricultural area, I have taken the  steps needed to improve farm incomes and to increase our agricultural  production to record levels. That progress must be continued in the 1980's.  
1981-393	1981	ENVIRONMENT  
1981-394	1981	Preserving the quality of our environment has been among the most important  objectives of my Administration and of the Congress. As a result of these  shared commitments and the dedicated efforts of many members of the  Congress and my Administration, we have achieved several historic  accomplishments.  
1981-395	1981	PROTECTION OF ALASKA LANDS  
1981-396	1981	Passage of the Alaska National Interest Lands Conservation Act was one of  the most important conservation actions of this century. At stake was the  fate of millions of acres of beautiful land, outstanding and unique  wildlife populations, native cultures, and the opportunity to ensure that  future generations of Americans would be able to enjoy the benefits of  these nationally significant resources. As a result of the leadership,  commitment, and persistence of my Administration and the Congressional  leadership, the Alaska Lands Bill was signed into law last December.  
1981-397	1981	The Act adds 97 million acres of new parks and refuges, more than doubling  the size of our National Park and National Wildlife Refuge Systems. The  bill triples the size of our national wilderness system, increasing its  size by 56 million acres. And by adding 25 free-flowing river segments to  the Wild and Scenic River System, the bill almost doubles the river mileage  in that system. The Alaska Lands Act reaffirms our commitment to the  environment and strikes a balance between protecting areas of great beauty  and allowing development of Alaska's oil, gas, mineral, and timber  resources.  
1981-398	1981	PROTECTION OF NATURAL RESOURCES  
1981-399	1981	In addition to the Alaska Lands Act, over the past four years we have been  able to expand significantly the national wilderness and parks systems. In  1978, the Congress passed the historical Omnibus Parks Act, which made 12  additions to the National Park System. The Act also established the first  two national trails since the National Trails System Act was passed in  1968. Then, in 1980, as a result of my 1979 Environmental Message, the  Federal land management agencies have established almost 300 new National  Recreational Trails. With the completion of the RARE II process, which  eliminated the uncertainty surrounding the status of millions of acres of  land, we called for over 15 million acres of new wilderness in the nation's  National Forest, in 1980 the Congress established about 4.5 million acres  of wilderness in the lower 48 states. In addition, the Administration  recommended legislation to protect Lake Tahoe, and through an Executive  Order has already established a mechanism to help ensure the Lake's  protection. Finally, in 1980 the Administration established the Channel  Islands Marine Sanctuary.  
1981-400	1981	Administration actions over the past four years stressed the importance of  providing Federal support only for water resource projects that are  economically and environmentally sound. This policy should have a major and  lasting influence on the federal government's role in water resource  development and management. The Administration's actions to recommend to  the Congress only economically and environmentally sound water resource  projects for funding resulted not only in our opposing uneconomic projects  but also, in 1979, in the first Administration proposal of new project  starts in 4 years.  
1981-401	1981	One of the most significant water policy actions of the past four years was  the Administration's June 6, 1978 Water Policy Reform Message to the  Congress. This Message established a new national water resources policy  with the following objectives:  
1981-402	1981	--to give priority emphasis to water conservation;  
1981-403	1981	--to consider environmental requirements and values more fully and along  with economic factors in the planning and management of water projects and  programs;  
1981-404	1981	--to enhance cooperation between state and federal agencies in water  resources planning and management.  
1981-405	1981	In addition, the Executive Office of the President established 11 policy  decision criteria to evaluate the proposed federal water projects, the  Water Resources Council developed and adopted a new set of Principles and  Standards for water projects which is binding on all federal construction  agencies, and improved regulations were developed to implement the National  Historic Preservation Act and the Fish and Wildlife Coordination Act. As a  result, water resource projects must be determined to be economically sound  before the Administration will recommend authorization or appropriation.  Over the years ahead, this policy will help to reduce wasteful federal  spending by targeting federal funds to the highest priority water resource  projects.  
1981-406	1981	In the pursuit of this policy, however, we cannot lose projects. In the  part that sound water resource projects play in providing irrigation,  power, and flood control. We must also recognize the special needs of  particular regions of the country in evaluating the need for additional  projects.  
1981-407	1981	ADDRESSING GLOBAL RESOURCE AND ENVIRONMENTAL PROBLEMS  
1981-408	1981	The Global 2000 Report to the President, prepared in response to my 1977  Environment Message, is the first of its kind. Never before has our  government, or any government, taken such a comprehensive, long-range look  at the interrelated global issues of resources, population, and  environment.  
1981-409	1981	The Report's conclusions are important. They point to a rapid increase in  population and human needs through the year 2000 while at the same time a  decline in the earth's capacity to meet those needs, unless nations of the  world act decisively to alter current trends.  
1981-410	1981	The United States has contributed actively to a series of U.N. conferences  on the environment, population, and resources, and is preparing for  the 1981 Conference on New and Renewable Sources of Energy. Following my  1977 Environmental Message, the Administration development assistance  programs have added emphasis to natural resource management and  environmental protection. My 1979 Environmental Message called attention to  the alarming loss of world forests, particularly in the tropics. An  interagency task force on tropical forests has developed a U.S. government  program to encourage conservation and wise management of tropical forests.  The Administration is encouraging action by other nations and world  organizations to the same purpose. The United States is a world leader in  wildlife conservation and the assessment of environmental effects of  government actions. The January 5, 1979, Executive Order directing U.S.  government agencies to consider the effects of their major actions abroad,  is another example of this leadership.  
1981-411	1981	COMMITMENT TO CONTROL OF POLLUTION AND HAZARDOUS CHEMICALS  
1981-412	1981	Over the past four years, there has been steady progress towards cleaner  air and water, sustained by the commitment of Congress and the  Administration to these important national objectives. In addition, the  Administration has developed several new pollution compliance approaches  such as alternative and innovative waste water treatment projects, the  "bubble" concept, the "offset" policy, and permit consolidation, all of  which are designed to reduce regulatory burdens on the private sector.  
1981-413	1981	One of the most pressing problems to come to light in the past four years  has been improper hazardous waste disposal. The Administration has moved on  three fronts. First, we proposed the Oil Hazardous Substances and Hazardous  Waste Response, Liability and Compensation Act (the Superfund bill) to  provide comprehensive authority and $1.6 billion in funds to clean up  abandoned hazardous waste disposal sites. In November 1980 the Congress  passed a Superfund bill which I signed into law.  
1981-414	1981	Second, the administration established a hazardous waste enforcement strike  force to ensure that when available, responsible parties are required to  clean up sites posing dangers to public health and to the environment. To  date, 50 lawsuits have been brought by the strike force.  
1981-415	1981	Third, regulations implementing subtitle C of the Resource Conservation and  Recovery Act were issued. The regulations establish comprehensive controls  for hazardous waste and, together with vigorous enforcement, will help to  ensure that Love Canal will not be repeated.  
1981-416	1981	THE FUTURE  
1981-417	1981	For the future, we cannot, and we must not, forget that we are charged with  the stewardship of an irreplaceable environment and natural heritage. Our  children, and our children's children, are dependent upon our maintaining  our commitment to preserving and enhancing the quality of our environment.  It is my hope that when our descendants look back on the 1980's they will  be able to affirm:  
1981-418	1981	--that we kept our commitment to the restoration of environmental  quality;  
1981-419	1981	--that we protected the public health from the continuing dangers of toxic  chemicals, from pollution, from hazardous and radioactive waste, and that  we made our communities safer, healthier and better places to live;  
1981-420	1981	--that we preserved America's wilderness areas and particularly its last  great frontier, Alaska, for the benefit of all Americans in perpetuity;  
1981-421	1981	--that we put this nation on a path to a sustainable energy future, one  based increasingly on renewable resources and on energy conservation;  
1981-422	1981	--that we moved to protect America's countryside and coastland from  mismanagement and irresponsibility;  
1981-423	1981	--that we redirected the management of the nation's water resources toward  water conservation, sound development and environmental protection;  
1981-424	1981	--that we faced squarely such worldwide problems as the destruction of  forests, acid rain, carbon dioxide build-up and nuclear proliferation; and  
1981-425	1981	--that we protected the habitat and the existence of our own species on  this earth.  
1981-426	1981	AGRICULTURE THE FARM ECONOMY  
1981-427	1981	The farm economy is sound and its future is bright. Agriculture remains a  major bulwark of the nation's economy and an even more important factor in  the world food system. The demand for America's agricultural abundance,  here and abroad, continues to grow. In the near-term, the strength of this  demand is expected to press hard against supplies, resulting in continued  price strength.  
1981-428	1981	The health and vitality of current-day agriculture represents a significant  departure from the situation that existed when I came to office four years  ago. In January 1977, the farm economy was in serious trouble. Farm prices  and farm income were falling rapidly. Grain prices were at their lowest  levels in years and steadily falling. Livestock producers, in their fourth  straight year of record losses, were liquidating breeding herds at an  unparalleled rate. Dairy farmers were losing money on every hundredweight  of milk they produced. Sugar prices were in a nosedive.  
1981-429	1981	Through a combination of improvements in old, established programs and the  adoption of new approaches where innovation and change were needed, my  Administration turned this situation around. Commodity prices have steadily  risen. Farm income turned upward. U.S. farm exports set new records each  year, increasing over 80 percent for the four year period. Livestock  producers began rebuilding their herds. Dairy farmers began to earn a  profit again.  
1981-430	1981	RECENT POLICY INITIATIVES  
1981-431	1981	Several major agricultural policy initiatives have been undertaken over the  past year. Some are the culmination of policy proposals made earlier in  this Administration; others are measures taken to help farmers offset the  impact of rapid inflation in production costs. In combination, they  represent a significant strengthening of our nation's food and agricultural  policy. These initiatives include:  
1981-432	1981	FOOD SECURITY RESERVE  
1981-433	1981	The Congress authorized formation of a 4 million ton food grain reserve for  use in international food assistance. This reserve makes it possible for  the United States to stand behind its food aid commitment to food deficit  nations, even during periods of short supplies and high prices. This  corrects a serious fault in our past food assistance policy.  
1981-434	1981	COMPREHENSIVE CROP INSURANCE  
1981-435	1981	The Congress also authorized a significant new crop insurance program  during 1980. This measure provides farmers with an important new program  tool for sharing the economic risks that are inherent to agriculture. When  fully operational, it will replace a hodgepodge of disaster programs that  suffered from numerous shortcomings.  
1981-436	1981	SPECIAL LOAN RATES  
1981-437	1981	Another legislative measure passed late in the 2nd session of the 96th  Congress authorizes the Secretary of Agriculture to provide higher loan  rates to farmers who enter their grain in the farmer-owned grain reserve.  This additional incentive to participate will further strengthen the  reserve.  
1981-438	1981	INCREASED LOAN PRICES  
1981-439	1981	In July 1980, I administratively raised loan prices for wheat, feedgrains,  and soybeans to help offset the effects of a serious cost-price squeeze. At  the same time, the release and call prices for the grain reserve were  adjusted upward.  
1981-440	1981	HIGHER TARGET PRICES  
1981-441	1981	The Agricultural Adjustment Act of 1980 raised the target prices for  1980-crop wheat and feed grain crops. This change corrected for  shortcomings in the adjustment formula contained in the Food and  Agriculture Act of 1977.  
1981-442	1981	FUTURE AGENDA  
1981-443	1981	The food and agricultural policies adopted by this Administration over the  past four years, including those described above, will provide a firm  foundation for future governmental actions in this field. Expiration of the  Food and Agriculture Act of 1977 later this year will require early  attention by the Congress. With relatively minor changes, most of the  authorities contained in the 1977 Act should be extended in their present  form. The farmer-owned grain reserve has proven to be a particularly  effective means of stabilizing grain markets and should be preserved in  essentially its present form.  
1981-444	1981	Beyond this, it will be important for the Congress to keep a close eye on  price-cost developments in the farm sector. As noted above, some of the  actions I took last year were for the purpose of providing relief from the  cost-price squeeze facing farmers. Should these pressures continue, further  actions might be required.  
1981-445	1981	My Administration has devoted particular attention to the issues of world  hunger, agricultural land use, and the future structure of American  agriculture. I encourage the Congress and the next Administration to review  the results of these landmark enquiries and, where deemed appropriate, to  act on their recommendations.  
1981-446	1981	Following a careful review of the situation, I recently extended the  suspension of grain sales to the Soviet Union. I am satisfied that this  action has served its purpose effectively and fairly. However, as long as  this suspension must remain in effect, it will be important for the next  Administration and the Congress to take whatever actions are necessary to  ensure that the burden does not fall unfairly on our Nation's farmers. This  has been a key feature of my Administration's policy, and it should be  maintained.  
1981-447	1981	VII. FOREIGN POLICY  
1981-448	1981	From the time I assumed office four years ago this month, I have stressed  the need for this country to assert a leading role in a world undergoing  the most extensive and intensive change in human history.  
1981-449	1981	My policies have been directed in particular at three areas of change:  
1981-450	1981	--the steady growth and increased projection abroad of Soviet military  power, power that has grown faster than our own over the past two decades.  
1981-451	1981	--the overwhelming dependence of Western nations, which now increasingly  includes the United States, on vital oil supplies from the Middle East.  
1981-452	1981	--the pressures of change in many nations of the developing world, in Iran  and uncertainty about the future stability of many developing countries.  
1981-453	1981	As a result of those fundamental facts, we face some of the most serious  challenges in the history of this nation. The Soviet invasion of  Afghanistan is a threat to global peace, to East-West relations, and to  regional stable flow of oil. As the unprecedented relations, an and  overwhelming vote in the General Assembly demonstrated, countries across  the world, and particularly the nonaligned, regard the Soviet invasion as a  threat to their independence and security. Turmoil within the region  adjacent to the Persian Gulf poses risks for the security and prosperity of  every oil importing nation and thus for the entire global economy. The  continuing holding of American hostages in Iran is both an affront to  civilized people everywhere, and a serious impediment to meeting the  self-evident threat to widely-shared common interests, including those of  Iran.  
1981-454	1981	But as we focus our most urgent efforts on pressing problems, we will  continue to pursue the benefits that only change can bring. For it always  has been the essence of America that we want to move on, we understand that  prosperity, progress and most of all peace cannot be had by standing still.  A world of nations striving to preserve their independence, and of peoples  aspiring for economic development and political freedom, is not a world  hostile to the ideals and interests of the United States. We face powerful  adversaries, but we have strong friends and dependable allies. We have  common interests with the vast majority of the world's nations and  peoples.  
1981-455	1981	There have been encouraging developments in recent years, as well as  matters requiring continued vigilance and concern:  
1981-456	1981	--Our alliances with the world's most advanced and democratic states from  Western Europe through Japan are stronger than ever.  
1981-457	1981	--We have helped to bring about a dramatic improvement in relations  between Egypt and Israel and an historic step towards a comprehensive  Arab-Israeli settlement.  
1981-458	1981	--Our relations with China are growing closer, providing a major new  dimension in our policy in Asia and the world.  
1981-459	1981	--Across southern Africa from Rhodesia to Namibia we are helping with the  peaceful transition to majority rule in a context of respect for minority  as well as majority rights.  
1981-460	1981	--We have worked domestically and with our allies to respond to an  uncertain energy situation by conservation and diversification of energy  supplies based on internationally agreed targets.  
1981-461	1981	--We have unambiguously demonstrated our commitment to defend Western  interests in Southwest Asia, and we have significantly increased our  ability to do so.  
1981-462	1981	--And over the past four years the U.S. has developed an energy program  which is comprehensive and ambitious. New institutions have been  established such as the Synthetic Fuels Corporation and Solar Bank. Price  decontrol for oil and gas is proceeding. American consumers have risen to  the challenge, and we have experienced real improvements in consumption  patterns.  
1981-463	1981	The central challenge for us today is to our steadfastedness of purpose. We  are no longer tempted by isolationism. But we must also learn to deal  effectively with the contradictions of the world, the need to cooperate  with potential adversaries without euphoria, without undermining our  determination to compete with such adversaries and if necessary confront  the threats they may pose to our security.  
1981-464	1981	We face a broad range of threats and opportunities. We have and should  continue to pursue a broad range of defense, diplomatic and economic  capabilities and objectives.  
1981-465	1981	I see six basic goals for America in the world over the 1980's:  
1981-466	1981	--First, we will continue, as we have over the past four years, to build  America's military strength and that of our allies and friends. Neither the  Soviet Union nor any other nation will have reason to question our will to  sustain the strongest and most flexible defense forces.  
1981-467	1981	--Second, we will pursue an active diplomacy in the world, working,  together with our friends and allies, to resolve disputes through peaceful  means and to make any aggressor pay a heavy price.  
1981-468	1981	--Third, we will strive to resolve pressing international economic  problems, particularly energy and inflation, and continue to pursue our  still larger objective of global economic growth through expanded trade and  development assistance and through the preservation of an open multilateral  trading system.  
1981-469	1981	--Fourth, we will continue vigorously to support the process of building  democratic institutions and improving human rights protection around the  world. We are deeply convinced that the future lies not with dictatorship  but democracy.  
1981-470	1981	--Fifth, we remain deeply committed to the process of mutual and  verifiable arms control, particularly to the effort to prevent the spread  and further development of nuclear weapons. Our decision to defer, but not  abandon our efforts to secure ratification of the SALT II Treaty reflects  our firm conviction that the United States has a profound national  security interest in the constraints on Soviet nuclear forces which only  that treaty can provide.  
1981-471	1981	--Sixth, we must continue to look ahead in order to evaluate and respond  to resource, environment and population challenges through the end of this  century.  
1981-472	1981	One very immediate and pressing objective that is uppermost on our minds  and those of the American people is the release of our hostages in Iran.  
1981-473	1981	We have no basic quarrel with the nation, the revolution or the people  of Iran. The threat to them comes not from American policy but from Soviet  actions in the region. We are prepared to work with the government of Iran  to develop a new and mutually beneficial relationship.  
1981-474	1981	But that will not be possible so long as Iran continues to hold Americans  hostages, in defiance of the world community and civilized behavior. They  must be released unharmed. We have thus far pursued a measured program of  peaceful diplomatic and economic steps in an attempt to resolve this issue  without resorting to other remedies available to us under international  law. This reflects the deep respect of our nation for the rule of law and  for the safety of our people being held, and our belief that a great power  bears a responsibility to use its strength in a measured and judicious  manner. But our patience is not unlimited and our concern for the  well-being of our fellow citizens grows each day.  
1981-475	1981	ENHANCING NATIONAL SECURITY, AMERICAN MILITARY STRENGTH  
1981-476	1981	The maintenance of national security is my first concern, as it has been  for every president before me.  
1981-477	1981	We must have both the military power and the political will to deter our  adversaries and to support our friends and allies.  
1981-478	1981	We must pay whatever price is required to remain the strongest nation in  the world. That price has increased as the military power of our major  adversary has grown and its readiness to use that power been made all too  evident in Afghanistan. The real increases in defense spending, therefore  probably will be higher than previously projected; protecting our security  may require a larger share of our national wealth in the future.  
1981-479	1981	THE U.S.-SOVIET RELATIONSHIP  
1981-480	1981	We are demonstrating to the Soviet Union across a broad front that it will  pay a heavy price for its aggression in terms of our relationship.  Throughout the last decades U.S.-Soviet relations have been a mixture of  cooperation and competition. The Soviet invasion of Afghanistan and the  imposition of a puppet government have highlighted in the starkest terms  the darker side of their policies, going well beyond competition and the  legitimate pursuit of national interest, and violating all norms of  international law and practice.  
1981-481	1981	This attempt to subjugate an independent, non-aligned Islamic people is a  callous violation of international law and the United Nations Charter, two  fundamentals of international order. Hence, it is also a dangerous threat  to world peace. For the first time since the communization of Eastern  Europe after World War II, the Soviets have sent combat forces into an area  that was not previously under their control, into a non-aligned and  sovereign state.  
1981-482	1981	The destruction of the independence of the Afghanistan government and the  occupation by the Soviet Union have altered the strategic situation in that  part of the world in a very ominous fashion. It has significantly shortened  the striking distance to the Indian Ocean and the Persian Gulf for the  Soviet Union.  
1981-483	1981	It has also eliminated a buffer between the Soviet Union and Pakistan and  presented a new threat to Iran. These two countries are now far more  vulnerable to Soviet political intimidation. If that intimidation were to  prove effective, the Soviet Union could control an area of vital strategic  and economic significance to the survival of Western Europe, the Far East,  and ultimately the United States.  
1981-484	1981	It has now been over a year since the Soviet invasion of Afghanistan dealt  a major blow to U.S.-Soviet relations and the entire international system.  The U.S. response has proven to be serious and far-reaching. It has been  increasingly effective, imposing real and sustained costs on the U.S.S.R.'s  economy and international image.  
1981-485	1981	Meanwhile, we have encouraged and supported efforts to reach a political  settlement in Afghanistan which would lead to a withdrawal of Soviet forces  from that country and meet the interests of all concerned. It is Soviet  intransigence that has kept those efforts from bearing fruit.  
1981-486	1981	Meanwhile, an overwhelming November resolution of the United Nations  General Assembly on Afghanistan has again made clear that the world has not  and will not forget Afghanistan. And our response continues to make it  clear that Soviet use of force in pursuit of its international objectives  is incompatible with the notion of business-as-usual.  
1981-487	1981	BILATERAL COMMUNICATION  
1981-488	1981	U.S.-Soviet relations remain strained by the continued Soviet presence in  Afghanistan, by growing Soviet military capabilities, and by the Soviets'  apparent willingness to use those capabilities without respect for the most  basic norms of international behavior.  
1981-489	1981	But the U.S.-Soviet relationship remains the single most important element  in determining whether there will be war or peace. And so, despite serious  strains in our relations, we have maintained a dialogue with the Soviet  Union over the past year. Through this dialogue, we have ensured against  bilateral misunderstandings and miscalculations which might escalate out of  control, and have managed to avoid the injection of superpower rivalries  into areas of tension like the Iran-Iraq conflict.  
1981-490	1981	POLAND  
1981-491	1981	Now, as was the case a year ago, the prospect of Soviet use of force  threatens the international order. The Soviet Union has completed  preparations for a possible military intervention against Poland. Although  the situation in Poland has shown signs of stabilizing recently, Soviet  forces remain in a high state of readiness and they could move into Poland  on short notice. We continue to believe that the Polish people should be  allowed to work out their internal problems themselves, without outside  interference, and we have made clear to the Soviet leadership that any  intervention in Poland would have severe and prolonged consequences for  East-West detente, and U.S.-Soviet relations in particular.  
1981-492	1981	DEFENSE BUDGET  
1981-493	1981	For many years the Soviets have steadily increased their real defense  spending, expanded their strategic forces, strengthened their forces in  Europe and Asia, and enhanced their capability for projecting military  force around the world directly or through the use of proxies. Afghanistan  dramatizes the vastly increased military power of the Soviet Union.  
1981-494	1981	The Soviet Union has built a war machine far beyond any reasonable  requirements for their own defense and security. In contrast, our own  defense spending declined in real terms every year from 1968 through 1976.  
1981-495	1981	We have reversed this decline in our own effort. Every year since 1976  there has been a real increase in our defense spending, and our lead has  encouraged increases by our allies. With the support of the Congress, we  must and will make an even greater effort in the years ahead.  
1981-496	1981	The Fiscal Year 1982 budget would increase funding authority for defense to  more than $196 billion. This amount, together with a supplemental request  for FY 1981 of about $6 billion, will more than meet my Administration's  pledge for a sustained growth of 3 percent in real expenditures, and  provides for 5 percent in program growth in FY 1982 and beyond.  
1981-497	1981	The trends we mean to correct cannot be remedied overnight; we must be  willing to see this program through. To ensure that we do so I am setting a  growth rate for defense that we can sustain over the long haul.  
1981-498	1981	The defense program I have proposed for the next five years will require  some sacrifice, but sacrifice we can well afford.  
1981-499	1981	The defense program emphasizes four areas:  
1981-500	1981	1. It ensures that our strategic nuclear forces will be equivalent to those  of the Soviet Union and that deterrence against nuclear war will be  maintained; 2. It upgrades our forces so that the military balance between  NATO and the Warsaw Pact will continue to deter the outbreak of war,  conventional or nuclear, in Europe; 3. It provides us the ability to come  quickly to the aid of friends and allies around the globe; 4. And it ensures  that our Navy will continue to be the most powerful on the seas.  
1981-501	1981	STRATEGIC FORCES  
1981-502	1981	We are strengthening each of the three legs of our strategic forces. The  cruise missile production which will begin next year will modernize our  strategic air deterrent. B-52 capabilities will also be improved. These  steps will maintain and enhance the B-52 fleet by improving its ability to  deliver weapons against increasingly heavily defended targets.  
1981-503	1981	We are also modernizing our strategic submarine force. Four more POSEIDON  submarines backfitted with new, 4,000 mile TRIDENT I missiles began  deployments in 1980. Nine TRIDENT submarines have been authorized through  1981, and we propose one more each year.  
1981-504	1981	The new M-X missile program to enhance our land-based intercontinental  ballistic missile force continues to make progress. Technical refinements  in the basing design over the last year will result in operational  benefits, lower costs, and reduced environmental impact. The M-X program  continues to be an essential ingredient in our strategic posture, providing  survivability, endurance, secure command and control and the capability to  threaten targets the Soviets hold dear.  
1981-505	1981	Our new systems will enable U.S. strategic forces to maintain equivalence  in the face of the mounting Soviet challenge. We would however need an even  greater investment in strategic systems to meet the likely Soviet buildup  without SALT.  
1981-506	1981	STRATEGIC DOCTRINE  
1981-507	1981	This Administration's systematic contributions to the necessary evolution  of strategic doctrine began in 1977 when I commissioned a comprehensive net  assessment. From that base a number of thorough investigations of specific  topics continued. I should emphasize that the need for an evolutionary  doctrine is driven not by any change in our basic objective, which remains  peace and freedom for all mankind. Rather, the need for change is driven by  the inexorable buildup of Soviet military power and the increasing  propensity of Soviet leaders to use this power in coercion and outright  aggression to impose their will on others.  
1981-508	1981	I have codified our evolving strategic doctrine in a number of interrelated  and mutually supporting Presidential Directives. Their overarching theme is  to provide a doctrinal basis, and the specific program to implement it,  that tells the world that no potential adversary of the United States could  ever conclude that the fruits of his aggression would be significant or  worth the enormous costs of our retaliation.  
1981-509	1981	The Presidential Directives include:  
1981-510	1981	PD-18: An overview of our strategic objectives PD-37: Basic space policy  PD-41: Civil Defense PD-53: Survivability and endurance for  telecommunications PD-57: Mobilization planning PD-58: Continuity of  Government PD-59: Countervailing Strategy for General War.  
1981-511	1981	These policies have been devised to deter, first and foremost, Soviet  aggression. As such they confront not only Soviet military forces but also  Soviet military doctrine. By definition deterrence requires that we shape  Soviet assessments about the risks of war, assessments they will make using  their doctrine, not ours.  
1981-512	1981	But at the same time we in no way seek to emulate their doctrine. In  particular, nothing in our policy contemplates that nuclear warfare could  ever be a deliberate instrument for achieving our own goals of peace and  freedom. Moreover, our policies are carefully devised to provide the  greatest possible incentives and opportunities for future progress in arms  control.  
1981-513	1981	Finally, our doctrinal evolution has been undertaken with appropriate  consultation with our NATO Allies and others. We are fully consistent with  NATO's strategy of flexible response.  
1981-514	1981	FORCES FOR NATO  
1981-515	1981	We are greatly accelerating our ability to reinforce Western Europe with  massive ground and air forces in a crisis. We are undertaking a major  modernization program for the Army's weapons and equipment, adding armor,  firepower, and tactical mobility.  
1981-516	1981	We are prepositioning more heavy equipment in Europe to help us cope with  attacks with little warning, and greatly strengthening our airlift and  sealift capabilities.  
1981-517	1981	We are also improving our tactical air forces, buying about 1700 new  fighter and attack aircraft over the next five years, and increasing the  number of Air Force fighter wings by over 10 percent.  
1981-518	1981	We are working closely with our European allies to secure the Host Nation  Support necessary to enable us to deploy more quickly a greater ratio of  combat forces to the European theater at a lower cost to the United  States.  
1981-519	1981	SECURITY ASSISTANCE  
1981-520	1981	As we move to enhance U.S. defense capabilities, we must not lose sight of  the need to assist others in maintaining their own security and  independence. Events since World War II, most recently in Southwest Asia,  have amply demonstrated that U.S. security cannot exist in a vacuum, and  that our own prospects for peace are closely tied to those of our friends.  The security assistance programs which I am proposing for the coming fiscal  year thus directly promote vital U.S. foreign policy and national security  aims, and are integral parts of our efforts to improve and upgrade our own  military forces.  
1981-521	1981	More specifically, these programs, which are part of our overall foreign  aid request, promote U.S. security in two principal ways. First, they  assist friendly and allied nations to develop the capability to defend  themselves and maintain their own independence. An example during this past  year was the timely support provided Thailand to help bolster that  country's defenses against the large numbers of Soviet-backed Vietnamese  troops ranged along its eastern frontier. In addition, over the years these  programs have been important to the continued independence of other friends  and allies such as Israel, Greece, Turkey and Korea. Second, security  assistance constitutes an essential element in the broad cooperative  relationships we have established with many nations which permit either  U.S. bases on their territory or access by U.S. forces to their facilities.  These programs have been particularly important with regard to the  recently-concluded access agreements with various countries in the Persian  Gulf and Indian Ocean regions and have been crucial to the protection of  our interests throughout Southwest Asia.  
1981-522	1981	RAPID DEPLOYMENT FORCES  
1981-523	1981	We are systematically enhancing our ability to respond rapidly to non-NATO  contingencies wherever required by our commitments or when our vital  interests are threatened.  
1981-524	1981	The rapid deployment forces we are assembling will be extraordinarily  flexible: They could range in size from a few ships or air squadrons to  formations as large as 100,000 men, together with their support. Our forces  will be prepared for rapid deployment to any region of strategic  significance.  
1981-525	1981	Among the specific initiatives we are taking to help us respond to crises  outside of Europe are:  
1981-526	1981	The development of a new fleet of large cargo aircraft with  intercontinental range; the design and procurement of a force of Maritime  Prepositioning Ships that will carry heavy equipment and supplies for three  Marine Corps brigades; the procurement of fast sealift ships to move large  quantities of men and material quickly from the U.S. to overseas areas of  deployment; increasing training and exercise activities to ensure that our  forces will be well prepared to deploy and operate in distant areas.  
1981-527	1981	In addition, our European allies have agreed on the importance of providing  support to U.S. deployments to Southwest Asia.  
1981-528	1981	NAVAL FORCES  
1981-529	1981	Seapower is indispensable to our global position, in peace and also in war.  Our shipbuilding program will sustain a 550-ship Navy in the 1990's and we  will continue to build the most capable ships afloat.  
1981-530	1981	The program I have proposed will assure the ability of our Navy to operate  in high threat areas, to maintain control of the seas and protect vital  lines of communication, both military and economic and to provide the  strong maritime component of our rapid deployment forces. This is essential  for operations in remote areas of the world, where we cannot predict far in  advance the precise location of trouble, or preposition equipment on land.  
1981-531	1981	MILITARY PERSONNEL  
1981-532	1981	No matter how capable or advanced our weapons systems, our military  security depends on the abilities, the training and the dedication of the  people who serve in our armed forces. I am determined to recruit and to  retain under any foreseeable circumstances an ample level of such skilled  and experienced military personnel. This Administration has supported for  FY 1981 the largest peacetime increase ever in military pay and  allowances.  
1981-533	1981	We have enhanced our readiness and combat endurance by improving the  Reserve Components. All reservists are assigned to units structured to  complement and provide needed depth to our active forces. Some reserve  personnel have also now been equipped with new equipment.  
1981-534	1981	MOBILIZATION PLANNING  
1981-535	1981	We have completed our first phase of mobilization planning, the first such  Presidentially-directed effort since World War II. The government-wide  exercise of our mobilization plans at the end of 1980 showed, first, that  planning pays off and, second, that much more needs to be done.  
1981-536	1981	OUR INTELLIGENCE POSTURE  
1981-537	1981	Our national interests are critically dependent on a strong and effective  intelligence capability. We will maintain and strengthen the intelligence  capabilities needed to assure our national security. Maintenance of and  continued improvements in our multi-faceted intelligence effort are  essential if we are to cope successfully with the turbulence and  uncertainties of today's world.  
1981-538	1981	The intelligence budget I have submitted to the Congress responds to our  needs in a responsible way, providing for significant growth over the  Fiscal Year 1981 budget. This growth will enable us to develop new  technical means of intelligence collection while also assuring that the  more traditional methods of intelligence work are also given proper stress.  We must continue to integrate both modes of collection in our analyses.  
1981-539	1981	REGIONAL POLICIES  
1981-540	1981	Every President for over three decades has recognized that America's  interests are global and that we must pursue a global foreign policy.  
1981-541	1981	Two world wars have made clear our stake in Western Europe and the North  Atlantic area. We are also inextricably linked with the Far East,  politically, economically, and militarily. In both of these, the United  States has a permanent presence and security commitments which would be  automatically triggered. We have become increasingly conscious of our  growing interests in a third area, the Middle East and the Persian Gulf  area.  
1981-542	1981	We have vital stakes in other major regions of the world as well. We have  long recognized that in an era of interdependence, our own security and  prosperity depend upon a larger common effort with friends and allies  throughout the world.  
1981-543	1981	THE ATLANTIC ALLIANCE  
1981-544	1981	In recognition of the threat which the Soviet invasion of Afghanistan posed  to Western interests in both Europe and Southwest Asia, NATO foreign and  defense ministers have expressed full support for U.S. efforts to develop a  capability to respond to a contingency in Southwest Asia and have approved  an extensive program to help fill the gap which could be created by the  diversion of U.S. forces to that region.  
1981-545	1981	The U.S. has not been alone in seeking to maintain stability in the  Southwest Asia area and insure access to the needed resources there. The  European nations with the capability to do so are improving their own  forces in the region and providing greater economic and political support  to the residents of the area. In the face of the potential danger posed by  the Iran-Iraq conflict, we have developed coordination among the Western  forces in the area of the Persian Gulf in order to be able to safeguard  passage in that essential waterway.  
1981-546	1981	Concerning developments in and around Poland the allies have achieved the  highest level of cohesion and unity of purpose in making clear the effects  on future East-West relations of a precipitous Soviet act there.  
1981-547	1981	The alliance has continued to build on the progress of the past three years  in improving its conventional forces through the Long-Term Defense Program.  Though economic conditions throughout Europe today are making its  achievement difficult, the yearly real increase of 3 percent in defense  spending remains a goal actively sought by the alliance.  
1981-548	1981	The NATO alliance also has moved forward during the past year with the  implementation of its historic December 1979 decision to modernize its  Theater Nuclear Force capabilities through deployment of improved Pershing  ballistic missiles and ground-launched cruise missiles in Europe. Our  allies continue to cooperate actively with us in this important joint  endeavor, whose purpose is to demonstrate convincingly to the Soviet Union  the potential costs of a nuclear conflict in Europe. At the same time, we  offered convincing evidence of our commitment to arms control in Europe by  initiating preliminary consultations with the Soviet Union in Geneva on the  subject of negotiated limits on long-range theater nuclear forces. Also,  during 1980 we initiated and carried out a withdrawal from our nuclear  weapons stockpile in Europe of 1,000 nuclear warheads. This successful  drawdown in our nuclear stockpile was a further tangible demonstration of  our commitment to the updating of our existing theater nuclear forces in  Europe.  
1981-549	1981	In the NATO area, we continued to work closely with other countries in  providing resources to help Turkey regain economic health. We regretted  that massive political and internal security problems led the Turkish  military to take over the government on September 12. The new Turkish  authorities are making some progress in resolving those problems, and they  have pledged an early return to civilian government. The tradition of the  Turkish military gives us cause to take that pledge seriously. We welcomed  the reestablishment of Greece's links to the integrated military command  structure of the Atlantic Alliance--a move which we had strongly  encouraged--as a major step toward strengthening NATO's vital southern  flank at a time of international crisis and tension in adjacent areas.  Greek reintegration exemplifies the importance which the allies place on  cooperating in the common defense and shows that the allies can make the  difficult decisions necessary to insure their continued security. We also  welcomed the resumption of the intercommunal talks on Cyprus.  
1981-550	1981	THE U.S. AND THE PACIFIC NATIONS  
1981-551	1981	The United States is a Pacific nation, as much as it is an Atlantic nation.  Our interests in Asia are as important to us as our interests in Europe.  Our trade with Asia is as great as our trade with Europe. During the past  four years we have regained a strong, dynamic and flexible posture for the  United States in this vital region.  
1981-552	1981	Our major alliances with Japan, Australia and New Zealand are now stronger  than they ever have been, and together with the nations of western Europe,  we have begun to form the basic political structure for dealing with  international crises that affect us all. Japan, Australia and New Zealand  have given us strong support in developing a strategy for responding to  instability in the Persian Gulf.  
1981-553	1981	Normalization of U.S. relations with China has facilitated China's full  entry into the international community and encouraged a constructive  Chinese role in the Asia-Pacific region. Our relations with China have been  rapidly consolidated over the past year through the conclusion of a series  of bilateral agreements. We have established a pattern of frequent and  frank consultations between our two governments, exemplified by a series of  high-level visits and by regular exchanges at the working level, through  which we have been able to identify increasingly broad areas of common  interest on which we can cooperate.  
1981-554	1981	United States relations with the Association of Southeast Asian Nations  (ASEAN) have also expanded dramatically in the past four years. ASEAN is  now the focus for U.S. policy in Southeast Asia, and its cohesion and  strength are essential to stability in this critical area and beyond.  
1981-555	1981	Soviet-supported Vietnamese aggression in Indo-china has posed a major  challenge to regional stability. In response, we have reiterated our  security commitment to Thailand and have provided emergency security  assistance for Thai forces facing a Vietnamese military threat along the  Thai-Cambodian border. We have worked closely with ASEAN and the U.N. to  press for withdrawal of Vietnamese forces from Cambodia and to encourage a  political settlement in Cambodia which permits that nation to be governed  by leaders of its own choice. We still look forward to the day when  Cambodia peacefully can begin the process of rebuilding its social,  economic and political institutions, after years of devastation and  occupation. And, on humanitarian grounds and in support of our friends in  the region, we have worked vigorously with international organizations to  arrange relief and resettlement for the exodus of Indo-chinese refugees  which threatened to overwhelm these nations.  
1981-556	1981	We have maintained our alliance with Korea and helped assure Korea's  security during a difficult period of political transition.  
1981-557	1981	We have amended our military base agreement with the Philippines, ensuring  stable access to these bases through 1991. The importance of our Philippine  bases to the strategic flexibility of U.S. forces and our access to the  Indian Ocean is self-evident.  
1981-558	1981	Finally, we are in the process of concluding a long negotiation  establishing Micronesia's status as a freely associated state.  
1981-559	1981	We enter the 1980's with a firm strategic footing in East Asia and the  Pacific, based on stable and productive U.S. relations with the majority of  countries of the region. We have established a stable level of U.S.  involvement in the region, appropriate to our own interests and to the  interests of our friends and allies there.  
1981-560	1981	THE MIDDLE EAST AND SOUTHWEST ASIA  
1981-561	1981	The continuing Soviet occupation of Afghanistan and the dislocations caused  by the Iraq-Iran war serve as constant reminders of the critical importance  for us, and our allies, of a third strategic zone stretching across the  Middle East, the Persian Gulf, and much of the Indian subcontinent. This  Southwest Asian region has served as a key strategic and commercial link  between East and West over the centuries. Today it produces two-thirds of  the world's oil exports, providing most of the energy needs of our European  allies and Japan. It has experienced almost continuous conflict between  nations, internal instabilities in many countries, and regional rivalries,  combined with very rapid economic and social change. And now the Soviet  Union remains in occupation of one of these nations, ignoring world opinion  which has called on it to get out.  
1981-562	1981	We have taken several measures to meet these challenges.  
1981-563	1981	MIDDLE EAST  
1981-564	1981	In the Middle East, our determination to consolidate what has already been  achieved in the peace process--and to buttress that accomplishment with  further progress toward a comprehensive peace settlement--must remain a  central goal of our foreign policy. Pursuant to their peace treaty, Egypt  and Israel have made steady progress in the normalization of their  relations in a variety of fields, bringing the benefits of peace directly  to their people. The new relationship between Egypt and Israel stands as an  example of peaceful cooperation in an increasingly fragmented and turbulent  region.  
1981-565	1981	Both President Sadat and Prime Minister Begin remain committed to the  current negotiations to provide full autonomy to the inhabitants of the  West Bank and Gaza. These negotiations have been complex and difficult, but  they have already made significant progress, and it is vital that the two  sides, with our assistance, see the process through to a successful  conclusion. We also recognize the need to broaden the peace process to  include other parties to the conflict and believe that a successful  autonomy agreement is an essential first step toward this objective.  
1981-566	1981	We have also taken a number of steps to strengthen our bilateral relations  with both Israel and Egypt. We share important strategic interests with  both of these countries.  
1981-567	1981	We remain committed to Israel's security and are prepared to take concrete  steps to support Israel whenever that security is threatened.  
1981-568	1981	PERSIAN GULF  
1981-569	1981	The Persian Gulf has been a vital crossroads for trade between Europe and  Asia at many key moments in history. It has become essential in recent  years for its supply of oil to the United States, our allies, and our  friends. We have taken effective measures to control our own consumption of  imported fuel, working in cooperation with the other key industrial /  nations of the world. However, there is little doubt that the healthy  growth of our American and world economies will depend for many years on  continued safe access to the Persian Gulf's oil production. The denial of  these oil supplies would threaten not only our own but world security.  
1981-570	1981	The potent new threat from an advancing Soviet Union, against the  background of regional instability of which it can take advantage, requires  that we reinforce our ability to defend our regional friends and to protect  the flow of oil. We are continuing to build on the strong political,  economic, social and humanitarian ties which bind this government and the  American people to friendly governments and peoples of the Persian Gulf.  
1981-571	1981	We have also embarked on a course to reinforce the trust and confidence our  regional friends have in our ability to come to their assistance rapidly  with American military force if needed. We have increased our naval  presence in the Indian Ocean. We have created a Rapid Deployment Force  which can move quickly to the Gulf--or indeed any other area of the world  where outside aggression threatens. We have concluded several agreements  with countries which are prepared to let us use their airports and naval  facilities in an emergency. We have met requests for reasonable amounts of  American weaponry from regional countries which are anxious to defend  themselves. And we are discussing with a number of our area friends further  ways we can help to improve their security and ours, both for the short and  the longer term.  
1981-572	1981	SOUTH ASIA  
1981-573	1981	We seek a South Asia comprising sovereign and stable states, free of  outside interference, which can strengthen their political institutions  according to their own national genius and can develop their economies for  the betterment of their people.  
1981-574	1981	The Soviet invasion of Afghanistan has posed a new challenge to this  region, and particularly to neighboring Pakistan. We are engaged in a  continuing dialogue with the Pakistan government concerning its development  and security requirements and the economic burden imposed by Afghan  refugees who have fled to Pakistan. We are participating with other aid  consortium members in debt rescheduling and will continue to cooperate  through the UNHCR in providing refugee assistance. We remain committed to  Pakistan's territorial integrity and independence.  
1981-575	1981	Developments in the broad South/Southwest Asian region have also lent a new  importance to our relations with India, the largest and strongest power in  the area. We share India's interest in a more constructive relationship.  Indian policies and perceptions at times differ from our own, and we have  established a candid dialogue with this sister democracy which seeks to  avoid the misunderstandings which have sometimes complicated our ties.  
1981-576	1981	We attach major importance to strong economic assistance programs to the  countries in the area, which include a majority of the poor of the  non-Communist world. We believe that these programs will help achieve  stability in the area, an objective we share with the countries in the  region. Great progress has been achieved by these countries in increasing  food production; international cooperation in harnessing the great river  resources of South Asia would contribute further to this goal and help to  increase energy production.  
1981-577	1981	We continue to give high priority to our non-proliferation goals in the  area in the context of our broad global and regional priorities. The  decision to continue supply of nuclear fuel to the Indian Tarapur reactors  was sensitive to this effort.  
1981-578	1981	AFRICA  
1981-579	1981	The United States has achieved a new level of trust and cooperation with  Africa. Our efforts, together with our allies, to achieve peace in southern  Africa, our increased efforts to help the poorest countries in Africa to  combat poverty, and our expanded efforts to promote trade and investment  have led to growing respect for the U.S. and to cooperation in areas of  vital interest to the United States.  
1981-580	1981	Africa is a continent of poor nations for the most part. It also contains  many of the mineral resources vital for our economy. We have worked with  Africa in a spirit of mutual cooperation to help the African nations solve  their problems of poverty and to develop stronger ties between our private  sector and African economies. Our assistance to Africa has more than  doubled in the last four years. Equally important, we set in motion new  mechanisms for private investment and trade.  
1981-581	1981	Nigeria is the largest country in Black Africa and the second largest oil  supplier to the United States. During this Administration we have greatly  expanded and improved our relationship with Nigeria and other West African  states whose aspirations for a constitutional democratic order we share and  support. This interest was manifested both symbolically and practically by  the visit of Vice President Mondale to West Africa in July (1980) and the  successful visit to Washington of the President of Nigeria in October.  
1981-582	1981	During Vice President Mondale's visit, a Joint Agricultural Consultative  Committee was established, with the U.S. represented entirely by the  private sector. This could herald a new role for the American private  sector in helping solve the world's serious food shortages. I am pleased to  say that our relations with Nigeria are at an all-time high, providing the  foundation for an even stronger relationship in the years ahead.  
1981-583	1981	Another tenet of this Administration's approach to African problems has  been encouragement and support for regional solutions to Africa's  problems. We have supported initiatives by the Organization of African  Unity to solve the protracted conflict in the western Sahara, Chad, and the  Horn. In Chad, the world is watching with dismay as a country torn by a  devastating civil war has become a fertile field for Libya's exploitation,  thus demonstrating that threats to peace can come from forces within as  well as without Africa.  
1981-584	1981	In southern Africa the United States continues to pursue a policy of  encouraging peaceful development toward majority rule. In 1980, Southern  Rhodesia became independent as Zimbabwe, a multiracial nation under a  system of majority rule. Zimbabwean independence last April was the  culmination of a long struggle within the country and diplomatic efforts  involving Great Britain, African states neighboring Zimbabwe, and the  United States.  
1981-585	1981	The focus of our efforts in pursuit of majority rule in southern Africa has  now turned to Namibia. Negotiations are proceeding among concerned parties  under the leadership of U.N. Secretary General Waldheim. This should lead  to implementation of the U.N. plan for self-determination and independence  for Namibia during 1981. If these negotiations are successfully concluded,  sixty-five years of uncertainty over the status of the territory, including  a seven-year-long war, will be ended.  
1981-586	1981	In response to our active concern with issues of importance to Africans,  African states have cooperated with us on issues of importance to our  national interests. African states voted overwhelmingly in favor of the  U.N. Resolution calling for release of the hostages, and for the U.N.  Resolution condemning the Soviet invasion of Afghanistan. Two countries of  Africa have signed access agreements with the U.S. allowing us use of naval  and air facilities in the Indian Ocean.  
1981-587	1981	Africans have become increasingly vocal on human rights. African leaders  have spoken out on the issue of political prisoners, and the OAU is  drafting its own Charter on Human Rights. Three countries in Africa--  Nigeria, Ghana, and Uganda--have returned to civilian rule during the past  year.  
1981-588	1981	U.S. cooperation with Africa on all these matters represents a strong base  on which we can build in future years.  
1981-589	1981	Liberia is a country of long-standing ties with the U.S. and the site of  considerable U.S. investment and facilities. This past April a coup  replaced the government and a period of political and economic uncertainty  ensued. The U.S. acted swiftly to meet this situation. We, together with  African leaders, urged the release of political prisoners, and many have  been released; we provided emergency economic assistance to help avoid  economic collapse, and helped to involve the IMF and the banking community  to bring about economic stability; and we have worked closely with the new  leaders to maintain Liberia's strong ties with the West and to protect  America's vital interests.  
1981-590	1981	NORTH AFRICA  
1981-591	1981	In early 1979, following a Libyan-inspired commando attack on a Tunisian  provincial city, the U.S. responded promptly to Tunisia's urgent request  for assistance, both by airlifting needed military equipment and by making  clear our longstanding interest in the security and integrity of this  friendly country. The U.S. remains determined to oppose other irresponsible  Libyan aspirations. Despairing of a productive dialogue with the Libyan  authorities, the U.S. closed down its embassy in Libya and later expelled  six Libyan diplomats in Washington in order to deter an intimidation  campaign against Libyan citizens in the U.S.  
1981-592	1981	U.S. relations with Algeria have improved, and Algeria has played an  indispensable and effective role as intermediary between Iran and the U.S.  over the hostage issue.  
1981-593	1981	The strengthening of our arms supply relationship with Morocco has helped  to deal with attacks inside its internationally recognized frontiers and to  strengthen its confidence in seeking a political settlement of the Western  Sahara conflict. While not assuming a mediatory role, the U.S. encouraged  all interested parties to turn their energies to a peaceful and sensible  compromise resolution of the war in the Sahara and supported efforts by the  Organization of African Unity toward that end. As the year drew to a close,  the U.S. was encouraged by evolution in the attitudes of all sides, and is  hopeful that their differences will be peacefully resolved in the year  ahead so that the vast economic potential of North Africa can be developed  for the well-being of the people living there.  
1981-594	1981	LATIN AMERICA AND THE CARIBBEAN  
1981-595	1981	The principles of our policies in this hemisphere have been clear and  constant over the last four years. We support democracy and respect for  human rights. We have struggled with many to help free the region of both  repression and terrorism. We have respected ideological diversity and  opposed outside intervention in purely internal affairs. We will act,  though, in response to a request for assistance by a country threatened by  external aggression. We support social and economic development within a  democratic framework. We support the peaceful settlement of disputes. We  strongly encourage regional cooperation and shared responsibilities within  the hemisphere to all these ends, and we have eagerly and regularly sought  the advice of the leaders of the region on a wide range of issues.  
1981-596	1981	Last November, I spoke to the General Assembly of the Organization of  American States of a cause that has been closest to my heart--human  rights. It is an issue that has found its time in the hemisphere. The cause  is not mine alone, but an historic movement that will endure.  
1981-597	1981	At Riobamba, Ecuador, last September four Andean Pact countries, Costa  Rica, and Panama broke new ground by adopting a "Code of Conduct," that  joint action in defense of human rights does not violate the principles of  nonintervention in the internal affairs of states in this hemisphere. The  Organization of American States has twice condemned the coup that  overturned the democratic process in Bolivia and the widespread abuse of  human rights by the regime which seized power. The Inter-American  Commission on Human Rights has gained world acclaim for its dispassionate  reports. It completed two major country studies this year in addition to  its annual report. In a resolution adopted without opposition, the OAS  General Assembly in November strongly supported the work of the Commission.  The American Convention on Human Rights is in force and an Inter-American  Court has been created to judge human rights violations. This convention  has been pending before the Senate for two years; I hope the United States  this year will join the other nations of the hemisphere in ratifying a  convention which embodies principles that are our tradition.  
1981-598	1981	The trend in favor of democracy has continued. During this past year, Peru  inaugurated a democratically elected government. Brazil continues its  process of liberalization. In Central America, Hondurans voted in record  numbers in their first national elections in over eight years. In the  Caribbean seven elections have returned governments firmly committed to the  democratic traditions of the Commonwealth.  
1981-599	1981	Another major contribution to peace in the hemisphere is Latin America's  own Treaty for the Prohibition of Nuclear Weapons. On behalf of the United  States, I signed Protocol I of this Treaty in May of 1977 and sent it to  the Senate for ratification. I urge that it be acted upon promptly by the  Senate in order that it be brought into the widest possible effect in the  Latin American region.  
1981-600	1981	Regional cooperation for development is gaining from Central America to the  Andes, and throughout the Caribbean. The Caribbean Group for Cooperation in  Economic Development, which we established with 29 other nations in 1977,  has helped channel $750 million in external support for growth in the  Caribbean. The recent meeting of the Chiefs of State of the Eastern  Caribbean set a new precedent for cooperation in that region. Mexico and  Venezuela jointly and Trinidad and Tobago separately have established oil  facilities that will provide substantial assistance to their oil importing  neighbors. The peace treaty between El Salvador and Honduras will hopefully  stimulate Central America to move forward again toward economic  integration. Formation of Caribbean/ Central American Action, a private  sector organization, has given a major impetus to improving  people-to-people bonds and strengthening the role of private enterprise in  the development of democratic societies.  
1981-601	1981	The Panama treaties have been in force for over a year. A new partnership  has been created with Panama; it is a model for large and small nations. A  longstanding issue that divided us from our neighbors has been resolved.  The security of the canal has been enhanced. The canal is operating as well  as ever, with traffic through it reaching record levels this year. Canal  employees, American and Panamanian alike, have remained on the job and have  found their living and working conditions virtually unchanged.  
1981-602	1981	In 1980, relations with Mexico continued to improve due in large measure to  the effectiveness of the Coordinator for Mexican Affairs and the expanded  use of the U.S.-Mexico Consultative Mechanism. By holding periodic meetings  of its various working groups, we have been able to prevent mutual concerns  from becoming political issues. The Secretary of State visited Mexico City  in November, and, along with the Mexican Secretary of Foreign Relations,  reviewed the performance of the Consultative Mechanism. The office of the  Coordinator has ensured the implementation of my directive to all agencies  to accord high priority to Mexican concerns. Trade with Mexico rose by  almost 60 percent to nearly $30 billion, making that country our third  largest trading partner.  
1981-603	1981	These are all encouraging developments. Other problems remain, however.  
1981-604	1981	The impact of large-scale migration is affecting many countries in the  hemisphere. The most serious manifestation was the massive, illegal exodus  from Cuba last summer. The Cuban government unilaterally encouraged the  disorderly and even deadly migration of 125,000 of its citizens in complete  disregard for international law or the immigration laws of its neighbors.  Migrations of this nature clearly require concerted action, and we have  asked the OAS to explore means of dealing with similar situations which may  occur in the future.  
1981-605	1981	We have a long-standing treaty with Colombia on Quita Sueno, Roncador, and  Serrano which remains to be ratified by the Senate.  
1981-606	1981	In Central America, the future of Nicaragua is unclear. Recent tensions,  the restrictions on the press and political activity, an inordinate Cuban  presence in the country and the tragic killing by the security forces of a  businessman well known for his democratic orientation, cause us  considerable concern. These are not encouraging developments. But those who  seek a free society remain in the contest for their nation's destiny. They  have asked us to help rebuild their country, and by our assistance, to  demonstrate that the democratic nations do not intend to abandon Nicaragua  to the Cubans. As long as those who intend to pursue their pluralistic  goals play important roles in Nicaragua, it deserves our continuing  support.  
1981-607	1981	In El Salvador, we have supported the efforts of the Junta to change the  fundamental basis of an inequitable system and to give a stake in a new  nation to those millions of people, who for so long, lived without hope or  dignity. As the government struggles against those who would restore an old  tyranny or impose a new one, the United States will continue to stand  behind them.  
1981-608	1981	We have increased our aid to the Caribbean, an area vital to our national  security, and we should continue to build close relations based on mutual  respect and understanding, and common interests.  
1981-609	1981	As the nations of this hemisphere prepare to move further into the 1980's,  I am struck by the depth of underlying commitment that there is to our  common principles: non-intervention, peaceful settlement of disputes,  cooperation for development, democracy and defense of basic human rights. I  leave office satisfied that the political, economic, social and  organizational basis for further progress with respect to all these  principles have been substantially strengthened in the past four years. I  am particularly reassured by the leadership by other nations of the  hemisphere in advancing these principles. The success of our common task of  improving the circumstances of all peoples and nations in the hemisphere  can only be assured by the sharing of responsibility. I look forward to a  hemisphere that at the end of this decade has proven itself anew as a  leader in the promotion of both national and human dignity.  
1981-610	1981	THE INTERNATIONAL ECONOMY  
1981-611	1981	A growing defense effort and a vigorous foreign policy rest upon a strong  economy here in the United States. And the strength of our own economy  depends upon our ability to lead and compete in the international  marketplace.  
1981-612	1981	ENERGY  
1981-613	1981	Last year, the war between Iraq and Iran led to the loss of nearly 4  million barrels of oil to world markets, the third major oil market  disruption in the past seven years. This crisis has vividly demonstrated  once again both the value of lessened dependence on oil imports and the  continuing instability of the Persian Gulf area.  
1981-614	1981	Under the leadership of the United States, the 21 members of the  International Energy Agency took collective action to ensure that the oil  shortfall stemming from the Iran-Iraq war would not be aggravated by  competition for scarce spot market supplies. We are also working together  to see that those nations most seriously affected by the oil disruption--  including our key NATO allies Turkey and Portugal--can get the oil they  need. At the most recent IEA Ministerial meeting we joined the other  members in pledging to take those policy measures necessary to slice our  joint oil imports in the first quarter of 1981 by 2.2 million barrels.  
1981-615	1981	Our international cooperation efforts in the energy field are not limited  to crisis management. At the Economic Summit meetings in Tokyo and Venice,  the heads of government of the seven major industrial democracies agreed to  a series of tough energy conservation and production goals. We are working  together with all our allies and friends in this effort.  
1981-616	1981	Construction has begun on a commercial scale coal liquefaction plant in  West Virginia co-financed by the United States, Japan and West Germany. An  interagency task force has just reported to me on a series of measures we  need to take to increase coal production and exports. This report builds on  the work of the International Energy Agency's Coal Industry Advisory Board.  With the assurances of a reliable United States steam coal supply at  reasonable prices, many of the electric power plants to be built in the  1980's and 1990's can be coal-fired rather than oil-burning.  
1981-617	1981	We are working cooperatively with other nations to increase energy security  in other areas as well. Joint research and development with our allies is  underway in solar energy, nuclear power, industrial conservation and other  areas. In addition, we are assisting rapidly industrializing nations to  carefully assess their basic energy policy choices, and our development  assistance program helps the developing countries to increase indigenous  energy production to meet the energy needs of their poorest citizens. We  support the proposal for a new World Bank energy affiliate to these same  ends, whose fulfillment will contribute to a better global balance between  energy supply and demand.  
1981-618	1981	INTERNATIONAL MONETARY POLICY  
1981-619	1981	Despite the rapid increase in oil costs, the policy measures we have taken  to improve domestic economic performance have had a continued powerful  effect on our external accounts and on the strength of the dollar. A strong  dollar helps in the fight against inflation.  
1981-620	1981	There has also been considerable forward movement in efforts to improve the  functioning of the international monetary system. The stability of the  international system of payments and trade is important to the stability  and good health of our own economy. We have given strong support to the  innovative steps being taken by the International Monetary Fund and World  Bank to help promote early adjustment to the difficult international  economic problems. Recent agreement to increase quotas by fifty percent  will ensure the IMF has sufficient resources to perform its central role in  promoting adjustment and financing payments imbalances. The World Bank's  new structural adjustment lending program will also make an important  contribution to international efforts to help countries achieve a  sustainable level of growth and development.  
1981-621	1981	SUGAR  
1981-622	1981	In 1980, Congress passed U.S. implementing legislation for the  International Sugar Agreement, thus fulfilling a major commitment of this  Administration. The agreement is an important element in our international  commodity policy with far-reaching implications for our relations with  developing countries, particularly sugar producers in Latin America.  Producers and consumers alike will benefit from a more stable market for  this essential commodity.  
1981-623	1981	COFFEE  
1981-624	1981	At year's end, Congress approved implementing legislation permitting the  U.S. to carry out fully its commitments under International Coffee  Agreement Specifically, the legislation enables us to meet our part of an  understanding negotiated last fall among members of the Agreement, which  defends, by use of export quotas, a price range well below coffee prices of  previous years and which commits major coffee producers to eliminate cartel  arrangements that manipulated future markets to raise prices. The way is  now open to a fully-functioning International Coffee Agreement which can  help to stabilize this major world commodity market. The results will be  positive for both consumers--who will be less likely to suffer from sharp  increases in coffee prices--and producers--who can undertake future  investment with assurance of greater protection against disruptive price  fluctuations in their exports.  
1981-625	1981	NATURAL RUBBER  
1981-626	1981	In 1980, the International Natural Rubber Agreement entered into force  provisionally. U.S. membership in this new body was approved overwhelmingly  by the Senate last year. The natural rubber agreement is a model of its  kind and should make a substantial contribution to a stable world market in  this key industrial commodity. It is thus an excellent example of  constructive steps to improve the operation of the world economy in ways  which can benefit the developing and industrialized countries alike. In  particular, the agreement has improved important U.S. relationships with  the major natural rubber-producing countries of Southeast Asia.  
1981-627	1981	COMMON FUND  
1981-628	1981	The United States joined members of the United Nations Conference on Trade  and Development, both developed and developing nations, in concluding  Articles of Agreement in 1980 for a Common Fund to help international  commodity agreements stabilize the prices of raw materials.  
1981-629	1981	ECONOMIC COOPERATION WITH DEVELOPING NATIONS  
1981-630	1981	Our relations with the developing nations are of major importance to the  United States. The fabric of our relations with these countries has strong  economic and political dimensions. They constitute the most rapidly growing  markets for our exports, and are important sources of fuel and raw  materials. Their political views are increasingly important, as  demonstrated in their overwhelming condemnation of the Soviet invasion of  Afghanistan. Our ability to work together with developing nations toward  goals we have in common (their political independence, the resolution of  regional tensions, and our growing ties of trade for example) require us to  maintain the policy of active involvement with the developing world that we  have pursued over the past four years.  
1981-631	1981	The actions we have taken in such areas as energy, trade, commodities, and  international financial institutions are all important to the welfare of  the developing countries. Another important way the United States can  directly assist these countries and demonstrate our concern for their  future is through our multilateral and bilateral foreign assistance  program. The legislation which I will be submitting to you for FY 82  provides the authority and the funds to carry on this activity. Prompt  Congressional action on this legislation is essential in order to attack  such high priority global problems as food and energy, meet our treaty and  base rights agreements, continue our peace efforts in the Middle East,  provide economic and development support to countries in need, promote  progress on North-South issues, protect Western interests, and counter  Soviet influence.  
1981-632	1981	Our proposed FY 1982 bilateral development aid program is directly  responsive to the agreement reached at the 1980 Venice Economic Summit that  the major industrial nations should increase their aid for food and energy  production and for family planning. We understand that other Summit  countries plan similar responses. It is also important to honor our  international agreements for multilateral assistance by authorizing and  appropriating funds for the International Financial Institutions. These  multilateral programs enhance the efficiency of U.S. contributions by  combining them with those of many other donor countries to promote  development; the proposed new World Bank affiliate to increase energy  output in developing countries offers particular promise. All these types  of aid benefit our long-run economic and political interests.  
1981-633	1981	Progress was made on a number of economic issues in negotiations throughout  the U.N. system. However, in spite of lengthy efforts in the United  Nations, agreement has not been reached on how to launch a process of  Global Negotiations in which nations might collectively work to solve such  important issues as energy, food, protectionism, and population pressures.  The United States continues to believe that progress can best be made when  nations focus on such specific problems, rather than on procedural and  institutional questions. It will continue to work to move the North-South  dialogue into a more constructive phase.  
1981-634	1981	FOOD--THE WAR ON HUNGER  
1981-635	1981	The War on Hunger must be a continuous urgent priority. Major portions of  the world's population continue to be threatened by the specter of hunger  and malnutrition. During the past year, some 150 million people in 36  African countries were faced with near disaster as the result of serious  drought, induced food shortages. Our government, working in concert with  the U.N.'s Food and Agricultural Organization (FAO), helped to respond to  that need. But the problems of hunger cannot be solved by short-term  measures. We must continue to support those activities, bilateral and  multilateral, which aim at improving food production especially in  developing countries and assuring global food security. These measures are  necessary to the maintenance of a stable and healthy world economy.  
1981-636	1981	I am pleased that negotiation of a new Food Aid Convention, which  guarantees a minimum annual level of food assistance, was successfully  concluded in March. The establishment of the International Emergency Wheat  Reserve will enable the U.S. to meet its commitment under the new  Convention to feed hungry people, even in times of short supply.  
1981-637	1981	Of immediate concern is the prospect of millions of Africans threatened by  famine because of drought and civil disturbances. The U.S. plea for  increased food aid resulted in the organization of an international  pledging conference and we are hopeful that widespread starvation will be  avoided.  
1981-638	1981	Good progress has been made since the Venice Economic Summit called for  increased effort on this front. We and other donor countries have begun to  assist poor countries develop long-term strategies to improve their food  production. The World Bank will invest up to $4 billion in the next few  years in improving the grain storage and food-handling capacity of  countries prone to food shortages.  
1981-639	1981	Good progress has been made since the Tokyo Economic Summit called for  increased effort on this front. The World Bank is giving this problem top  priority, as are some other donor countries. The resources of the  consultative Group on International Agricultural Research will be doubled  over a five-year period. The work of our own Institute of Scientific and  Technological Cooperation will further strengthen the search for relevant  new agricultural technologies.  
1981-640	1981	The goal of freeing the world from hunger by the year 2000 should command  the full support of all countries.  
1981-641	1981	The Human Dimension of Foreign Policy  
1981-642	1981	HUMAN RIGHTS  
1981-643	1981	The human rights policy of the United States has been an integral part of  our overall foreign policy for the past several years. This policy serves  the national interest of the United States in several important ways: by  encouraging respect by governments for the basic rights of human beings, it  promotes peaceful, constructive change, reduces the likelihood of internal  pressures for violent change and for the exploitation of these by our  adversaries, and thus directly serves our long-term interest in peace and  stability; by matching espousal of fundamental American principles of  freedom with specific foreign policy actions, we stand out in vivid  contrast to our ideological adversaries; by our efforts to expand freedom  elsewhere, we render our own freedom, and our own nation, more secure.  Countries that respect human rights make stronger allies and better  friends.  
1981-644	1981	Rather than attempt to dictate what system of government or institutions  other countries should have, the U.S. supports, throughout the world, the  internationally recognized human rights which all members of the United  Nations have pledged themselves to respect. There is more than one model  that can satisfy the continuing human reach for freedom and justice:  
1981-645	1981	1980 has been a year of some disappointments, but has also seen some  positive developments in the ongoing struggle for fulfillment of human  rights throughout the world. In the year we have seen:  
1981-646	1981	--Free elections were held and democratic governments installed in Peru,  Dominica, and Jamaica. Honduras held a free election for installation of a  constituent assembly. An interim government was subsequently named pointing  toward national presidential elections in 1981. Brazil continues on its  course of political liberalization.  
1981-647	1981	--The "Charter of Conduct" signed in Riobamba, Ecuador, by Ecuador,  Colombia, Venezuela, Peru, Costa Rica, Panama and Spain, affirms the  importance of democracy and human rights for the Andean countries.  
1981-648	1981	--The Organization of American States, in its annual General Assembly,  approved a resolution in support of the Inter-American Human Rights  Commission's work. The resolution took note of the Commission's annual  report, which described the status of human rights in Chile, El Salvador,  Paraguay and Uruguay; and the special reports on Argentina and Haiti, which  described human rights conditions as investigated during on-site  inspections to these countries.  
1981-649	1981	--The awarding of the Nobel Prize for Peace to Adolfo Perez Esquivel of  Argentina for his non-violent advocacy of human rights.  
1981-650	1981	--The United States was able to rejoin the International Labor  Organization after an absence of two years, as that U.N. body reformed its  procedures to return to its original purpose of strengthening  employer-employee-government relations to insure human rights for the  working people of the world.  
1981-651	1981	The United States, of course, cannot take credit for all these various  developments. But we can take satisfaction in knowing that our policies  encourage and perhaps influence them.  
1981-652	1981	Those who see a contradiction between our security and our humanitarian  interests forget that the basis for a secure and stable society is the bond  of trust between a government and its people. I profoundly believe that the  future of our world is not to be found in authoritarianism: that wears the  mask of order, or totalitarianism that wears the mask of justice. Instead,  let us find our future in the human face of democracy, the human voice of  individual liberty, the human hand of economic development.  
1981-653	1981	HUMANITARIAN AID  
1981-654	1981	The United States has continued to play its traditional role of safehaven  for those who flee or are forced to flee their homes because of persecution  or war. During 1980, the United States provided resettlement opportunities  for 216,000 refugees from countries around the globe. In addition, the  United States joined with other nations to provide relief to refugees in  country of first asylum in Africa, the Middle East, and Asia.  
1981-655	1981	The great majority of refugee admissions continued to be from Indo-china.  During 1980, 168,000 Indo-chinese were resettled in the United States.  Although refugee populations persist in camps in Southeast Asia, and  refugees continue to flee Vietnam, Laos and Kampuchea, the flow is not as  great as in the past. One factor in reducing the flow from Vietnam has been  the successful negotiation and commencement of an Orderly Departure Program  which permits us to process Vietnamese for resettlement in the United  States with direct departure from Ho Chi Minh Ville in an orderly fashion.  The first group of 250 departed Vietnam for the United States in December,  1980.  
1981-656	1981	In addition to the refugees admitted last year, the United States accepted  for entry into the United States 125,000 Cubans who were expelled by Fidel  Castro. Federal and state authorities, as well as private voluntary  agencies, responded with unprecedented vigor to coping with the unexpected  influx of Cubans.  
1981-657	1981	Major relief efforts to aid refugees in countries of first asylum continued  in several areas of the world. In December, 1980, thirty-two nations,  meeting in New York City, agreed to contribute $65 million to the  continuing famine relief program in Kampuchea. Due in great part to the  generosity of the American people and the leadership exercised in the  international arena by the United States, we have played the pivotal role  in ameliorating massive suffering in Kampuchea.  
1981-658	1981	The United States has taken the lead among a group of donor countries who  are providing relief to some two million refugees in the Horn of Africa who  have been displaced by fighting in Ethiopia. U.S. assistance, primarily to  Somalia, consists of $35 million worth of food and $18 million in cash and  kind. Here again, United States efforts can in large part be credited with  keeping hundreds of thousands of people alive.  
1981-659	1981	Another major international relief effort has been mounted in Pakistan. The  United States is one of 25 countries plus the European Economic Community  who have been helping the Government of Pakistan to cope with the problem  of feeding and sheltering the more than one million refugees that have been  generated by the Soviet invasion of Afghanistan.  
1981-660	1981	In April, 1980, the Congress passed the Refugee Act of 1980 which brought  together, for the first time, in one piece of legislation the various  threads of U.S. policy towards refugees. The law laid down a new, broader  definition of the term refugee, established mechanisms for arriving at a  level of refugee admissions through consultation with Congress, and  established the Office of the United States Coordinator for Refugees.  
1981-661	1981	It cannot be ignored that the destructive and aggressive policies of the  Soviet Union have added immeasurably to the suffering in these three tragic  situations.  
1981-662	1981	The Control of Nuclear Weapons  
1981-663	1981	Together with our friends and allies, we are striving to build a world in  which peoples with diverse interests can live freely and prosper. But all  that humankind has achieved to date, all that we are seeking to accomplish,  and human existence itself can be undone in an instant--in the catastrophe  of a nuclear war.  
1981-664	1981	Thus one of the central objectives of my Administration has been to control  the proliferation of nuclear weapons to those nations which do not have  them, and their further development by the existing nuclear powers--  notably the Soviet Union and the United States.  
1981-665	1981	NON-PROLIFERATION  
1981-666	1981	My Administration has been committed to stemming the spread of nuclear  weapons. Nuclear proliferation would raise the spectre of the use of  nuclear explosives in crucial, unstable regions of the world endangering  not only our security and that of our Allies, but that of the whole world.  Non-proliferation is not and can not be a unilateral U.S. policy, nor  should it be an issue of contention between the industrialized and  developing states. The international non-proliferation effort requires the  support of suppliers as well as importers of nuclear technology and  materials.  
1981-667	1981	We have been proceeding on a number of fronts:  
1981-668	1981	--First, we have been seeking to encourage nations to accede to the  Non-Proliferation Treaty. The U.S. is also actively encouraging other  nations to accept full-scope safeguards on all of their nuclear activities  and is asking other nuclear suppliers to adopt a full-scope safeguards  requirement as a condition for future supply.  
1981-669	1981	--Second, the International Nuclear Fuel Cycle Evaluation (INFCE), which  was completed in 1980, demonstrated that suppliers and recipients can work  together on these technically complex and sensitive issues. While  differences remain, the INFCE effort provides a broader international basis  for national decisions which must balance energy needs with  non-proliferation concerns.  
1981-670	1981	--Finally, we are working to encourage regional cooperation and restraint.  Protocol I of the Treaty of Tlatelolco which will contribute to the  lessening of nuclear dangers for our Latin American neighbors ought now to  be ratified by the United States Senate.  
1981-671	1981	LIMITATIONS ON STRATEGIC ARMS  
1981-672	1981	I remain convinced that the SALT II Treaty is in our Nation's security  interest and that it would add significantly to the control of nuclear  weapons. I strongly support continuation of the SALT process and the  negotiation of more far-reaching mutual restraints on nuclear weaponry.  
1981-673	1981	CONCLUSION  
1981-674	1981	We have new support in the world for our purposes of national independence  and individual human dignity. We have a new will at home to do what is  required to keep us the strongest nation on earth.  
1981-675	1981	We must move together into this decade with the strength which comes from  realization of the dangers before us and from the confidence that together  we can overcome them.  The White House, January 16, 1981.  
1982-1	1982	Mr. Speaker, Mr. President, distinguished Members of the Congress, honored  guests, and fellow citizens:  
1982-2	1982	Today marks my first State of the Union address to you, a constitutional  duty as old as our Republic itself.  
1982-3	1982	President Washington began this tradition in 1790 after reminding the  Nation that the destiny of self-government and the "preservation of the  sacred fire of liberty" is "finally staked on the experiment entrusted to  the hands of the American people." For our friends in the press, who place  a high premium on accuracy, let me say: I did not actually hear George  Washington say that. But it is a matter of historic record.  
1982-4	1982	But from this podium, Winston Churchill asked the free world to stand  together against the onslaught of aggression. Franklin Delano Roosevelt  spoke of a day of infamy and summoned a nation to arms. Douglas MacArthur  made an unforgettable farewell to a country he loved and served so well.  Dwight Eisenhower reminded us that peace was purchased only at the price of  strength. And John F. Kennedy spoke of the burden and glory that is  freedom.  
1982-5	1982	When I visited this Chamber last year as a newcomer to Washington, critical  of past policies which I believed had failed, I proposed a new spirit of  partnership between this Congress and this administration and between  Washington and our State and local governments. In forging this new  partnership for America, we could achieve the oldest hopes of our  Republic--prosperity for our nation, peace for the world, and the blessings  of individual liberty for our children and, someday, for all of humanity.  
1982-6	1982	It's my duty to report to you tonight on the progress that we have made in  our relations with other nations, on the foundation we've carefully laid  for our economic recovery, and finally, on a bold and spirited initiative  that I believe can change the face of American government and make it again  the servant of the people.  
1982-7	1982	Seldom have the stakes been higher for America. What we do and say here  will make all the difference to autoworkers in Detroit, lumberjacks in the  Northwest, steelworkers in Steubenville who are in the unemployment lines;  to black teenagers in Newark and Chicago; to hard-pressed farmers and small  businessmen; and to millions of everyday Americans who harbor the simple  wish of a safe and financially secure future for their children. To  understand the state of the Union, we must look not only at where we are  and where we're going but where we've been. The situation at this time last  year was truly ominous.  
1982-8	1982	The last decade has seen a series of recessions. There was a recession in  1970, in 1974, and again in the spring of 1980. Each time, unemployment  increased and inflation soon turned up again. We coined the word  "stagflation" to describe this.  
1982-9	1982	Government's response to these recessions was to pump up the money supply  and increase spending. In the last 6 months of 1980, as an example, the  money supply increased at the fastest rate in postwar history--13 percent.  Inflation remained in double digits, and government spending increased at  an annual rate of 17 percent. Interest rates reached a staggering 21.5  percent. There were 8 million unemployed.  
1982-10	1982	Late in 1981 we sank into the present recession, largely because continued  high interest rates hurt the auto industry and construction. And there was  a drop in productivity, and the already high unemployment increased.  
1982-11	1982	This time, however, things are different. We have an economic program in  place, completely different from the artificial quick fixes of the past. It  calls for a reduction of the rate of increase in government spending, and  already that rate has been cut nearly in half. But reduced spending the  first and smallest phase of a 3-year tax rate reduction designed to  stimulate the economy and create jobs. Already interest rates are down to  15 3/4 percent, but they must still go lower. Inflation is down from 12.4  percent to 8.9, and for the month of December it was running at an  annualized rate of 5.2 percent. If we had not acted as we did, things would  be far worse for all Americans than they are today. Inflation, taxes, and  interest rates would all be higher.  
1982-12	1982	A year ago, Americans' faith in their governmental process was steadily  declining. Six out of 10 Americans were saying they were pessimistic about  their future. A new kind of defeatism was heard. Some said our domestic  problems were uncontrollable, that we had to learn to live with this  seemingly endless cycle of high inflation and high unemployment.  
1982-13	1982	There were also pessimistic predictions about the relationship between our  administration and this Congress. It was said we could never work together.  Well, those predictions were wrong. The record is clear, and I believe that  history will remember this as an era of American renewal, remember this  administration as an administration of change, and remember this Congress  as a Congress of destiny.  
1982-14	1982	Together, we not only cut the increase in government spending nearly in  half, we brought about the largest tax reductions and the most sweeping  changes in our tax structure since the beginning of this century. And  because we indexed future taxes to the rate of inflation, we took away  government's built-in profit on inflation and its hidden incentive to grow  larger at the expense of American workers.  
1982-15	1982	Together, after 50 years of taking power away from the hands of the people  in their States and local communities, we have started returning power and  resources to them.  
1982-16	1982	Together, we have cut the growth of new Federal regulations nearly in half.  In 1981 there were 23,000 fewer pages in the Federal Register, which lists  new regulations, than there were in 1980. By deregulating oil we've come  closer to achieving energy independence and helped bring down the cost of  gasoline and heating fuel.  
1982-17	1982	Together, we have created an effective Federal strike force to combat waste  and fraud in government. In just 6 months it has saved the taxpayers more  than $2 billion, and it's only getting started.  
1982-18	1982	Together we've begun to mobilize the private sector, not to duplicate  wasteful and discredited government programs, but to bring thousands of  Americans into a volunteer effort to help solve many of America's social  problems.  
1982-19	1982	Together we've begun to restore that margin of military safety that ensures  peace. Our country's uniform is being worn once again with pride.  
1982-20	1982	Together we have made a New Beginning, but we have only begun.  
1982-21	1982	No one pretends that the way ahead will be easy. In my Inaugural Address  last year, I warned that the "ills we suffer have come upon us over several  decades. They will not go away in days, weeks, or months, but they will go  away . . . because we as Americans have the capacity now, as we've had it  in the past, to do whatever needs to be done to preserve this last and  greatest bastion of freedom."  
1982-22	1982	The economy will face difficult moments in the months ahead. But the  program for economic recovery that is in place will pull the economy out of  its slump and put us on the road to prosperity and stable growth by the  latter half of this year. And that is why I can report to you tonight that  in the near future the state of the Union and the economy will be  better--much better--if we summon the strength to continue on the course  that we've charted.  
1982-23	1982	And so, the question: If the fundamentals are in place, what now? Well, two  things. First, we must understand what's happening at the moment to the  economy. Our current problems are not the product of the recovery program  that's only just now getting underway, as some would have you believe; they  are the inheritance of decades of tax and tax and spend and spend.  
1982-24	1982	Second, because our economic problems are deeply rooted and will not  respond to quick political fixes, we must stick to our carefully integrated  plan for recovery. That plan is based on four commonsense fundamentals:  continued reduction of the growth in Federal spending; preserving the  individual and business tax reductions that will stimulate saving and  investment; removing unnecessary Federal regulations to spark productivity;  and maintaining a healthy dollar and a stable monetary policy, the latter a  responsibility of the Federal Reserve System.  
1982-25	1982	The only alternative being offered to this economic program is a return to  the policies that gave us a trillion-dollar debt, runaway inflation,  runaway interest rates and unemployment. The doubters would have us turn  back the clock with tax increases that would offset the personal tax rate  reductions already passed by this Congress. Raise present taxes to cut  future deficits, they tell us. Well, I don't believe we should buy that  argument.  
1982-26	1982	There are too many imponderables for anyone to predict deficits or  surpluses several years ahead with any degree of accuracy. The budget in  place, when I took office, had been projected as balanced. It turned out to  have one of the biggest deficits in history. Another example of the  imponderables that can make deficit projections highly questionable--a  change of only one percentage point in unemployment can alter a deficit up  or down by some $25 billion.  
1982-27	1982	As it now stands, our forecast, which we're required by law to make, will  show major deficits starting at less than a hundred billion dollars and  declining, but still too high. More important, we're making progress with  the three keys to reducing deficits: economic growth, lower interest rates,  and spending control. The policies we have in place will reduce the deficit  steadily, surely, and in time, completely.  
1982-28	1982	Higher taxes would not mean lower deficits. If they did, how would we  explain that tax revenues more than doubled just since 1976; yet in that  same 6-year period we ran the largest series of deficits in our history. In  1980 tax revenues increased by $54 billion, and in 1980 we had one of our  all-time biggest deficits. Raising taxes won't balance the budget; it will  encourage more government spending and less private investment. Raising  taxes will slow economic growth, reduce production, and destroy future  jobs, making it more difficult for those without jobs to find them and more  likely that those who now have jobs could lose them. So, I will not ask you  to try to balance the budget on the backs of the American taxpayers.  
1982-29	1982	I will seek no tax increases this year, and I have no intention of  retreating from our basic program of tax relief. I promise to bring the  American people--to bring their tax rates down and to keep them down, to  provide them incentives to rebuild our economy, to save, to invest in  America's future. I will stand by my word. Tonight I'm urging the American  people: Seize these new opportunities to produce, to save, to invest, and  together we'll make this economy a mighty engine of freedom, hope, and  prosperity again.  
1982-30	1982	Now, the budget deficit this year will exceed our earlier expectations. The  recession did that. It lowered revenues and increased costs. To some  extent, we're also victims of our own success. We've brought inflation down  faster than we thought we could, and in doing this, we've deprived  government of those hidden revenues that occur when inflation pushes people  into higher income tax brackets. And the continued high interest rates last  year cost the government about $5 billion more than anticipated.  
1982-31	1982	We must cut out more nonessential government spending and rout out more  waste, and we will continue our efforts to reduce the number of employees  in the Federal work force by 75,000.  
1982-32	1982	The budget plan I submit to you on February 8th will realize major savings  by dismantling the Departments of Energy and Education and by eliminating  ineffective subsidies for business. We'll continue to redirect our  resources to our two highest budget priorities--a strong national defense  to keep America free and at peace and a reliable safety net of social  programs for those who have contributed and those who are in need.  
1982-33	1982	Contrary to some of the wild charges you may have heard, this  administration has not and will not turn its back on America's elderly or  America's poor. Under the new budget, funding for social insurance programs  will be more than double the amount spent only 6 years ago. But it would be  foolish to pretend that these or any programs cannot be made more efficient  and economical.  
1982-34	1982	The entitlement programs that make up our safety net for the truly needy  have worthy goals and many deserving recipients. We will protect them. But  there's only one way to see to it that these programs really help those  whom they were designed to help. And that is to bring their spiraling costs  under control.  
1982-35	1982	Today we face the absurd situation of a Federal budget with three-quarters  of its expenditures routinely referred to as "uncontrollable." And a large  part of this goes to entitlement programs.  
1982-36	1982	Committee after committee of this Congress has heard witness after witness  describe many of these programs as poorly administered and rife with waste  and fraud. Virtually every American who shops in a local supermarket is  aware of the daily abuses that take place in the food stamp program, which  has grown by 16,000 percent in the last 15 years. Another example is  Medicare and Medicaid--programs with worthy goals but whose costs have  increased from 11.2 billion to almost 60 billion, more than 5 times as  much, in just 10 years.  
1982-37	1982	Waste and fraud are serious problems. Back in 1980 Federal investigators  testified before one of your committees that "corruption has permeated  virtually every area of the Medicare and Medicaid health care industry."  One official said many of the people who are cheating the system were "very  confident that nothing was going to happen to them." Well, something is  going to happen. Not only the taxpayers are defrauded; the people with real  dependency on these programs are deprived of what they need, because  available resources are going not to the needy, but to the greedy.  
1982-38	1982	The time has come to control the uncontrollable. In August we made a start.  I signed a bill to reduce the growth of these programs by $44 billion over  the next 3 years while at the same time preserving essential services for  the truly needy. Shortly you will receive from me a message on further  reforms we intend to install--some new, but others long recommended by your  own congressional committees. I ask you to help make these savings for the  American taxpayer.  
1982-39	1982	The savings we propose in entitlement programs will total some $63 billion  over 4 Years and will, without affecting social t security, go a long way  toward bringing Federal spending under control.  
1982-40	1982	But don't be fooled by those who proclaim that spending cuts will deprive  the elderly, the needy, and the helpless. The. Federal Government will  still subsidize 95 million meals every day. That's one out of seven of all  the meals served in America. Head Start, senior nutrition programs, and  child welfare programs will not be cut from the levels we proposed last  year. More than one-half billion dollars has been proposed for minority  business assistance. And research at the National Institute of Health will  be increased by over $100 million. While meeting all these needs, we intend  to plug unwarranted tax loopholes and strengthen the law which requires all  large corporations to pay a minimum tax.  
1982-41	1982	I am confident the economic program we've put into operation will protect  the needy while it triggers a recovery that will benefit all Americans. It  will stimulate the economy, result in increased savings and provide capital  for expansion, mortgages for homebuilding, and jobs for the unemployed.  
1982-42	1982	Now that the essentials of that program are in place, our next major  undertaking must be a program--just as bold, just as innovative--to make  government again accountable to the people, to make our system of  federalism work again.  
1982-43	1982	Our citizens feel they've lost control of even the most basic decisions  made about the essential services of government, such as schools, welfare,  roads, and even garbage collection. And they're right. A maze of  interlocking jurisdictions and levels of government confronts average  citizens in trying to solve even the simplest of problems. They don't know  where to turn for answers, who to hold accountable, who to praise, who to  blame, who to vote for or against. The main reason for this is the  overpowering growth of Federal grants-in-aid programs during the past few  decades.  
1982-44	1982	In 1960 the Federal Government had 132 categorical grant programs, costing  $7 billion. When I took office, there were approximately 500, costing  nearly a hundred billion dollars--13 programs for energy, 36 for pollution  control, 66 for social services, 90 for education. And here in the  Congress, it takes at least 166 committees just to try to keep track of  them.  
1982-45	1982	You know and I know that neither the President nor the Congress can  properly oversee this jungle of grants-in-aid; indeed, the growth of these  grants has led to the distortion in the vital functions of government. As  one Democratic Governor put it recently: The National Government should be  worrying about "arms control, not potholes."  
1982-46	1982	The growth in these Federal programs has--in the words of one  intergovernmental commission--made the Federal Government "more pervasive,  more intrusive, more unmanageable, more ineffective and costly, and above  all, more (un) accountable." Let's solve this problem with a single, bold  stroke: the return of some $47 billion in Federal programs to State and  local government, together with the means to finance them and a transition  period of nearly 10 years to avoid unnecessary disruption.  
1982-47	1982	I will shortly send this Congress a message describing this program. I want  to emphasize, however, that its full details will have been worked out only  after close consultation with congressional, State, and local officials.  
1982-48	1982	Starting in fiscal 1984, the Federal Government will assume full  responsibility for the cost of the rapidly growing Medicaid program to go  along with its existing responsibility for Medicare. As part of a  financially equal swap, the States will simultaneously take full  responsibility for Aid to Families with Dependent Children and food stamps.  This will make welfare less costly and more responsive to genuine need,  because it'll be designed and administered closer to the grass roots and  the people it serves.  
1982-49	1982	In 1984 the Federal Government will apply the full proceeds from certain  excise taxes to a grass roots trust fund that will belong in fair shares to  the 50 States. The total amount flowing into this fund will be $28 billion  a year. Over the next 4 years the States can use this money in either of  two ways. If they want to continue receiving Federal grants in such areas  as transportation, education, and social services, they can use their trust  fund money to pay for the grants. Or to the extent they choose to forgo the  Federal grant programs, they can use their trust fund money on their own  for those or other purposes. There will be a mandatory pass-through of part  of these funds to local governments.  
1982-50	1982	By 1988 the States will be in complete control of over 40 Federal grant  programs. The trust fund will start to phase out, eventually to disappear,  and the excise taxes will be turned over to the States. They can then  preserve, lower, or raise taxes on their own and fund and manage these  programs as they see fit.  
1982-51	1982	In a single stroke we will be accomplishing a realignment that will end  cumbersome administration and spiraling costs at the Federal level while we  ensure these programs will be more responsive to both the people they're  meant to help and the people who pay for them.  
1982-52	1982	Hand in hand with this program to strengthen the discretion and flexibility  of State and local governments, we're proposing legislation for an  experimental effort to improve and develop our depressed urban areas in the  1980's and '90's. This legislation will permit States and localities to  apply to the Federal Government for designation as urban enterprise zones.  A broad range of special economic incentives in the zones will help attract  new business, new jobs, new opportunity to America's inner cities and rural  towns. Some will say our mission is to save free enterprise. Well, I say we  must free enterprise so that together we can save America.  
1982-53	1982	Some will also say our States and local communities are not up to the  challenge of a new and creative partnership. Well, that might have been  true 20 years ago before reforms like reapportionment and the Voting Rights  Act, the 10-year extension of which I strongly support. It's no longer true  today. This administration has faith in State and local governments and the  constitutional balance envisioned by the Founding Fathers. We also believe  in the integrity, decency, and sound, good sense of grass roots Americans.  
1982-54	1982	Our faith in the American people is reflected in another major endeavor.  Our private sector initiatives task force is seeking out successful  community models of school, church, business, union, foundation, and civic  programs that help community needs. Such groups are almost invariably far  more efficient than government in running social programs.  
1982-55	1982	We're not asking them to replace discarded and often discredited government  programs dollar for dollar, service for service. We just want to help them  perform the good works they choose and help others to profit by their  example. Three hundred and eighty-five thousand corporations and private  organizations are already working on social programs ranging from drug  rehabilitation to job training, and thousands more Americans have written  us asking how they can help. The volunteer spirit is still alive and well  in America.  
1982-56	1982	Our nation's long journey towards civil rights for all our citizens--once  a source of discord, now a source of pride--must continue with no  backsliding or slowing down. We must and shall see that those basic laws  that guarantee equal rights are preserved and, when necessary,  strengthened.  
1982-57	1982	Our concern for equal rights for women is firm and unshakable. We launched  a new Task Force on Legal Equity for Women and a Fifty States Project that  will examine State laws for discriminatory language. And for the first time  in our history, a woman sits on the highest court in the land.  
1982-58	1982	So, too, the problem of crime--one as real and deadly serious as any in  America today. It demands that we seek transformation of our legal system,  which overly protects the rights of criminals while it leaves society and  the innocent victims of crime without justice.  
1982-59	1982	We look forward to the enactment of a responsible clean air act to increase  jobs while continuing to improve the quality of our air. We're encouraged  by the bipartisan initiative of the House and are hopeful of further  progress as the Senate continues its deliberations.  
1982-60	1982	So far, I've concentrated largely, now, on domestic matters. To view the  state of the Union in perspective, we must not ignore the rest of the  world. There isn't time tonight for a lengthy treatment of social--or  foreign policy, I should say, a subject I intend to address in detail in  the near future. A few words, however, are in order on the progress we've  made over the past year, reestablishing respect for our nation around the  globe and some of the challenges and goals that we will approach in the  year ahead.  
1982-61	1982	At Ottawa and Cancun, I met with leaders of the major industrial powers and  developing nations. Now, some of those I met with were a little surprised  that I didn't apologize for America's wealth. Instead, I spoke of the  strength of the free marketplace system and how that system could help them  realize their aspirations for economic development and political freedom. I  believe lasting friendships were made, and the foundation was laid for  future cooperation.  
1982-62	1982	In the vital region of the Caribbean Basin, we're developing a program of  aid, trade, and investment incentives to promote self-sustaining growth and  a better, more secure life for our neighbors to the south. Toward those who  would export terrorism and subversion in the Caribbean and elsewhere,  especially Cuba and Libya, we will act with firmness.  
1982-63	1982	Our foreign policy is a policy of strength, fairness, and balance. By  restoring America's military credibility, by pursuing peace at the  negotiating table wherever both sides are willing to sit down in good  faith, and by regaining the respect of America's allies and adversaries  alike, we have strengthened our country's position as a force for peace and  progress in the world.  
1982-64	1982	When action is called for, we're taking it. Our sanctions against the  military dictatorship that has attempted to crush human rights in  Poland--and against the Soviet regime behind that military  dictatorship--clearly demonstrated to the world that America will not  conduct "business as usual" with the forces of oppression. If the events in  Poland continue to deteriorate, further measures will follow.  
1982-65	1982	Now, let me also note that private American groups have taken the lead in  making January 30th a day of solidarity with the people of Poland. So, too,  the European Parliament has called for March 21st to be an international  day of support for Afghanistan. Well, I urge all peace-loving peoples to  join together on those days, to raise their voices, to speak and pray for  freedom.  
1982-66	1982	Meanwhile, we're working for reduction of arms and military activities, as  I announced in my address to the Nation last November 18th. We have  proposed to the Soviet Union a far-reaching agenda for mutual reduction of  military forces and have already initiated negotiations with them in Geneva  on intermediate-range nuclear forces. In those talks it is essential that  we negotiate from a position of strength. There must be a real incentive  for the Soviets to take these talks seriously. This requires that we  rebuild our defenses.  
1982-67	1982	In the last decade, while we sought the moderation of Soviet power through  a process of restraint and accommodation, the Soviets engaged in an  unrelenting buildup of their military forces. The protection of our  national security has required that we undertake a substantial program to  enhance our military forces.  
1982-68	1982	We have not neglected to strengthen our traditional alliances in Europe and  Asia, or to develop key relationships with our partners in the Middle East  and other countries. Building a more peaceful world requires a sound  strategy and the national resolve to back it up. When radical forces  threaten our friends, when economic misfortune creates conditions of  instability, when strategically vital parts of the world fall under the  shadow of Soviet power, our response can make the difference between  peaceful change or disorder and violence. That's why we've laid such stress  not only on our own defense but on our vital foreign assistance program.  Your recent passage of the Foreign Assistance Act sent a signal to the  world that America will not shrink from making the investments necessary  for both peace and security. Our foreign policy must be rooted in realism,  not naivete or self-delusion.  
1982-69	1982	A recognition of what the Soviet empire is about is the starting point.  Winston Churchill, in negotiating with the Soviets, observed that they  respect only strength and resolve in their dealings with other nations.  That's why we've moved to reconstruct our national defenses. We intend to  keep the peace. We will also keep our freedom.  
1982-70	1982	We have made pledges of a new frankness in our public statements and  worldwide broadcasts. In the face of a climate of falsehood and  misinformation, we've promised the world a season of truth--the truth of  our great civilized ideas: individual liberty, representative government,  the rule of law under God. We've never needed walls or minefields or barbed  wire to keep our people in. Nor do we declare martial law to keep our  people from voting for the kind of government they want.  
1982-71	1982	Yes, we have our problems; yes, we're in a time of recession. And it's  true, there's no quick fix, as I said, to instantly end the tragic pain of  unemployment. But we will end it. The process has already begun, and we'll  see its effect as the year goes on.  
1982-72	1982	We speak with pride and admiration of that little band of Americans who  overcame insuperable odds to set this nation on course 200 years ago. But  our glory didn't end with them. Americans ever since have emulated their  deeds.  
1982-73	1982	We don't have to turn to our history books for heroes. They're all around  us. One who sits among you here tonight epitomized that heroism at the end  of the longest imprisonment ever inflicted on men of our Armed Forces. Who  will ever forget that night when we waited for television to bring us the  scene of that first plane landing at Clark Field in the Philippines,  bringing our POW's home? The plane door opened and Jeremiah Denton came  slowly down the ramp. He caught sight of our flag, saluted it, said, "God  bless America," and then thanked us for bringing him home.  
1982-74	1982	Just 2 weeks ago, in the midst of a terrible tragedy on the Potomac, we saw  again the spirit of American heroism at its finest--the heroism of  dedicated rescue workers saving crash victims from icy waters. And we saw  the heroism of one of our young government employees, Lenny Skutnik, who,  when he saw a woman lose her grip on the helicopter line, dived into the  water and dragged her to safety.  
1982-75	1982	And then there are countless, quiet, everyday heroes of American who  sacrifice long and hard so their children will know a better life than  they've known; church and civic volunteers who help to feed, clothe, nurse,  and teach the needy; millions who've made our nation and our nation's  destiny so very special--unsung heroes who may not have realized their own  dreams themselves but then who reinvest those dreams in their children.  Don't let anyone tell you that America's best days are behind her, that the  American spirit has been vanquished. We've seen it triumph too often in our  lives to stop believing in it now.  
1982-76	1982	A hundred and twenty years ago, the greatest of all our Presidents  delivered his second State of the Union message in this Chamber. "We cannot  escape history," Abraham Lincoln warned. "We of this Congress and this  administration will be remembered in spite of ourselves." The "trial  through which we pass will light us down, in honor or dishonor, to the  latest (last) generation."  
1982-77	1982	Well, that President and that Congress did not fail the American people.  Together they weathered the storm and preserved the Union. Let it be said  of us that we, too, did not fail; that we, too, worked together to bring  America through difficult times. Let us so conduct ourselves that two  centuries from now, another Congress and another President, meeting in this  Chamber as we are meeting, will speak of us with pride, saying that we met  the test and preserved for them in their day the sacred flame of  liberty--this last, best hope of man on Earth.  
1982-78	1982	God bless you, and thank you.  
1982-79	1982	NOTE: The President spoke at 9 p.m. in the House Chamber at the Capitol.  He was introduced by Thomas P. O'Neill, Jr., Speaker of the House of  Representatives. The address was broadcast live on nationwide radio  and television.  
1983-1	1983	Mr. Speaker, Mr. President, distinguished Members of the Congress, honored  guests, and fellow citizens:  
1983-2	1983	This solemn occasion marks the 196th time that a President of the United  States has reported on the State of the Union since George Washington first  did so in 1790. That's a lot of reports, but there's no shortage of new  things to say about the State of the Union. The very key to our success has  been our ability, foremost among nations, to preserve our lasting values by  making change work for us rather than against us.  
1983-3	1983	I would like to talk with you this evening about what we can do  together--not as Republicans and Democrats, but as Americans--to make  tomorrow's America happy and prosperous at home, strong and respected  abroad, and at peace in the world.  
1983-4	1983	As we gather here tonight, the state of our Union is strong, but our  economy is troubled. For too many of our fellow citizens--farmers, steel and  auto workers, lumbermen, black teenagers, working mothers--this is a painful  period. We must all do everything in our power to bring their ordeal to an  end. It has fallen to us, in our time, to undo damage that was a long time  in the making, and to begin the hard but necessary task of building a  better future for ourselves and our children.  
1983-5	1983	We have a long way to go, but thanks to the courage, patience, and strength  of our people, America is on the mend.  
1983-6	1983	But let me give you just one important reason why I believe this--it  involves many members of this body.  
1983-7	1983	Just 10 days ago, after months of debate and deadlock, the bipartisan  Commission on Social Security accomplished the seemingly impossible. Social  security, as some of us had warned for so long, faced disaster. I, myself,  have been talking about this problem for almost 30 years. As 1983 began,  the system stood on the brink of bankruptcy, a double victim of our  economic ills. First, a decade of rampant inflation drained its reserves as  we tried to protect beneficiaries from the spiraling cost of living. Then  the recession and the sudden end of inflation withered the expanding wage  base and increasing revenues the system needs to support the 36 million  Americans who depend on it.  
1983-8	1983	When the Speaker of the House, the Senate majority leader, and I performed  the bipartisan--or formed the bipartisan Commission on Social Security,  pundits and experts predicted that party divisions and conflicting  interests would prevent the Commission from agreeing on a plan to save  social security. Well, sometimes, even here in Washington, the cynics are  wrong. Through compromise and cooperation, the members of the Commission  overcame their differences and achieved a fair, workable plan. They proved  that, when it comes to the national welfare, Americans can still pull  together for the common good.  
1983-9	1983	Tonight, I'm especially pleased to join with the Speaker and the Senate  majority leader in urging the Congress to enact this plan by Easter.  
1983-10	1983	There are elements in it, of course, that none of us prefers, but taken  together it performs a package that all of us can support. It asks for some  sacrifice by all--the self-employed, beneficiaries, workers, government  employees, and the better-off among the retired--but it imposes an undue  burden on none. And, in supporting it, we keep an important pledge to the  American people: The integrity of the social security system will be  preserved, and no one's payments will be reduced.  
1983-11	1983	The Commission's plan will do the job; indeed, it must do the job. We owe  it to today's older Americans and today's younger workers. So, before we go  any further, I ask you to join with me in saluting the members of the  Commission who are here tonight and Senate Majority Leader Howard Baker and  Speaker Tip O'Neill for a job well done. I hope and pray the bipartisan  spirit that guided you in this endeavor will inspire all of us as we face  the challenges of the year ahead.  
1983-12	1983	Nearly half a century ago, in this Chamber, another American President,  Franklin Delano Roosevelt, in his second State of the Union message, urged  America to look to the future, to meet the challenge of change and the need  for leadership that looks forward, not backward.  
1983-13	1983	"Throughout the world," he said, "change is the order of the day. In every  nation economic problems long in the making have brought crises to (of)  many kinds for which the masters of old practice and theory were  unprepared." He also reminded us that "the future lies with those wise  political leaders who realize that the great public is interested more in  Government than in politics."  
1983-14	1983	So, let us, in these next 2 years--men and women of both parties, every  political shade--concentrate on the long-range, bipartisan responsibilities  of government, not the short-range or short-term temptations of partisan  politics.  
1983-15	1983	The problems we inherited were far worse than most inside and out of  government had expected; the recession was deeper than most inside and out  of government had predicted. Curing those problems has taken more time and  a higher toll than any of us wanted. Unemployment is far too high.  Projected Federal spending--if government refuses to tighten its own  belt--will also be far too high and could weaken and shorten the economic  recovery now underway.  
1983-16	1983	This recovery will bring with it a revival of economic confidence and  spending for consumer items and capital goods--the stimulus we need to  restart our stalled economic engines. The American people have already  stepped up their rate of saving, assuring that the funds needed to  modernize our factories and improve our technology will once again flow to  business and industry.  
1983-17	1983	The inflationary expectations that led to a 21 1/2-percent interest prime  rate and soaring mortgage rates 2 years ago are now reduced by almost half.  Leaders have started to realize that double-digit inflation is no longer a  way of life. I misspoke there. I should have said "lenders."  
1983-18	1983	So, interest rates have tumbled, paving the way for recovery in vital  industries like housing and autos.  
1983-19	1983	The early evidence of that recovery has started coming in. Housing starts  for the fourth quarter of 1982 were up 45 percent from a year ago, and  housing permits, a sure indicator of future growth, were up a whopping 60  percent.  
1983-20	1983	We're witnessing an upsurge of productivity and impressive evidence that  American industry will once again become competitive in markets at home and  abroad, ensuring more jobs and better incomes for the Nation's work force.  But our confidence must also be tempered by realism and patience. Quick  fixes and artificial stimulants repeatedly applied over decades are what  brought us the inflationary disorders that we've now paid such a heavy  price to cure.  
1983-21	1983	The permanent recovery in employment, production, and investment we seek  won't come in a sharp, short spurt. It'll build carefully and steadily in  the months and years ahead. In the meantime, the challenge of government is  to identify the things that we can do now to ease the massive economic  transition for the American people.  
1983-22	1983	The Federal budget is both a symptom and a cause of our economic problems.  Unless we reduce the dangerous growth rate in government spending, we could  face the prospect of sluggish economic growth into the indefinite future.  Failure to cope with this problem now could mean as much as a trillion  dollars more in national debt in the next 4 years alone. That would average  $4,300 in additional debt for every man, woman, child, and baby in our  nation.  
1983-23	1983	To assure a sustained recovery, we must continue getting runaway spending  under control to bring those deficits down. If we don't, the recovery will  be too short, unemployment will remain too high, and we will leave an  unconscionable burden of national debt for our children. That we must not  do.  
1983-24	1983	Let's be clear about where the deficit problem comes from. Contrary to the  drumbeat we've been hearing for the last few months, the deficits we face  are not rooted in defense spending. Taken as a percentage of the gross  national product, our defense spending happens to be only about four-fifths  of what it was in 1970. Nor is the deficit, as some would have it, rooted  in tax cuts. Even with our tax cuts, taxes as a fraction of gross national  product remain about the same as they were in 1970. The fact is, our  deficits come from the uncontrolled growth of the budget for domestic  spending.  
1983-25	1983	During the 1970's, the share of our national income devoted to this  domestic spending increased by more than 60 percent, from 10 cents out of  every dollar produced by the American people to 16 cents. In spite of all  our economies and efficiencies, and without adding any new programs, basic,  necessary domestic spending provided for in this year's budget will grow to  almost a trillion dollars over the next 5 years.  
1983-26	1983	The deficit problem is a clear and present danger to the basic health of  our Republic. We need a plan to overcome this danger--a plan based on these  principles. It must be bipartisan. Conquering the deficits and putting the  Government's house in order will require the best effort of all of us. It  must be fair. Just as all will share in the benefits that will come from  recovery, all would share fairly in the burden of transition. It must be  prudent. The strength of our national defense must be restored so that we  can pursue prosperity and peace and freedom while maintaining our  commitment to the truly needy. And finally, it must be realistic. We can't  rely on hope alone.  
1983-27	1983	With these guiding principles in mind, let me outline a four-part plan to  increase economic growth and reduce deficits.  
1983-28	1983	First, in my budget message, I will recommend a Federal spending freeze. I  know this is strong medicine, but so far, we have only cut the rate of  increase in Federal spending. The Government has continued to spend more  money each year, though not as much more as it did in the past. Taken as a  whole, the budget I'm proposing for the fiscal year will increase no more  than the rate of inflation. In other words, the Federal Government will  hold the line on real spending. Now, that's far less than many American  families have had to do in these difficult times.  
1983-29	1983	I will request that the proposed 6-month freeze in cost-of-living  adjustments recommended by the bipartisan Social Security Commission be  applied to other government-related retirement programs. I will, also,  propose a 1-year freeze on a broad range of domestic spending programs, and  for Federal civilian and military pay and pension programs. And let me say  right here, I'm sorry, with regard to the military, in asking that of them,  because for so many years they have been so far behind and so low in reward  for what the men and women in uniform are doing. But I'm sure they will  understand that this must be across the board and fair.  
1983-30	1983	Second, I will ask the Congress to adopt specific measures to control the  growth of the so-called uncontrollable spending programs. These are the  automatic spending programs, such as food stamps, that cannot be simply  frozen and that have grown by over 400 percent since 1970. They are the  largest single cause of the built-in or structural deficit problem. Our  standard here will be fairness, ensuring that the taxpayers' hard-earned  dollars go only to the truly needy; that none of them are turned away, but  that fraud and waste are stamped out. And I'm sorry to say, there's a lot  of it out there. In the food stamp program alone, last year, we identified  almost $1.1 billion in overpayments. The taxpayers aren't the only victims  of this kind of abuse. The truly needy suffer as funds intended for them  are taken not by the needy, but by the greedy. For everyone's sake, we must  put an end to such waste and corruption.  
1983-31	1983	Third, I will adjust our program to restore America's defenses by proposing  $55 billion in defense savings over the next 5 years. These are savings  recommended to me by the Secretary of Defense, who has assured me they can  be safely achieved and will not diminish our ability to negotiate arms  reductions or endanger America's security. We will not gamble with our  national survival.  
1983-32	1983	And fourth, because we must ensure reduction and eventual elimination of  deficits over the next several years, I will propose a standby tax, limited  to no more than 1 percent of the gross national product, to start in fiscal  1986. It would last no more than 3 years, and it would start only if the  Congress has first approved our spending freeze and budget control program.  And there are several other conditions also that must be met, all of them  in order for this program to be triggered.  
1983-33	1983	Now, you could say that this is an insurance policy for the future, a  remedy that will be at hand if needed but only resorted to if absolutely  necessary. In the meantime, we'll continue to study ways to simplify the  tax code and make it more fair for all Americans. This is a goal that every  American who's ever struggled with a tax form can understand.  
1983-34	1983	At the same time, however, I will oppose any efforts to undo the basic tax  reforms that we've already enacted, including the 10-percent tax break  coming to taxpayers this July and the tax indexing which will protect all  Americans from inflationary bracket creep in the years ahead.  
1983-35	1983	Now, I realize that this four-part plan is easier to describe than it will  be to enact. But the looming deficits that hang over us and over America's  future must be reduced. The path I've outlined is fair, balanced, and  realistic. If enacted, it will ensure a steady decline in deficits, aiming  toward a balanced budget by the end of the decade. It's the only path that  will lead to a strong, sustained recovery. Let us follow that path  together.  
1983-36	1983	No domestic challenge is more crucial than providing stable, permanent jobs  for all Americans who want to work. The recovery program will provide jobs  for most, but others will need special help and training for new skills.  Shortly, I will submit to the Congress the Employment Act of 1983, designed  to get at the special problems of the long-term unemployed, as well as  young people trying to enter the job market. I'll propose extending  unemployment benefits, including special incentives to employers who hire  the long-term unemployed, providing programs for displaced workers, and  helping federally funded and State-administered unemployment insurance  programs provide workers with training and relocation assistance. Finally,  our proposal will include new incentives for summer youth employment to  help young people get a start in the job market.  
1983-37	1983	We must offer both short-term help and long-term hope for our unemployed. I  hope we can work together on this. I hope we can work together as we did  last year in enacting the landmark Job Training Partnership Act. Regulatory  reform legislation, a responsible clean air act, and passage of enterprise  zone legislation will also create new incentives for jobs and opportunity.  
1983-38	1983	One of out of every five jobs in our country depends on trade. So, I will  propose a broader strategy in the field of international trade--one that  increases the openness of our trading system and is fairer to America's  farmers and workers in the world marketplace. We must have adequate export  financing to sell American products overseas. I will ask for new  negotiating authority to remove barriers and to get more of our products  into foreign markets. We must strengthen the organization of our trade  agencies and make changes in our domestic laws and international trade  policy to promote free trade and the increased flow of American goods,  services, and investments.  
1983-39	1983	Our trade position can also be improved by making our port system more  efficient. Better, more active harbors translate into stable jobs in our  coalfields, railroads, trucking industry, and ports. After 2 years of  debate, it's time for us to get together and enact a port modernization  bill.  
1983-40	1983	Education, training, and retraining are fundamental to our success as are  research and development and productivity. Labor, management, and  government at all levels can and must participate in improving these tools  of growth. Tax policy, regulatory practices, and government programs all  need constant reevaluation in terms of our competitiveness. Every American  has a role and a stake in international trade.  
1983-41	1983	We Americans are still the technological leaders in most fields. We must  keep that edge, and to do so we need to begin renewing the basics--starting  with our educational system. While we grew complacent, others have acted.  Japan, with a population only about half the size of ours, graduates from  its universities more engineers than we do. If a child doesn't receive  adequate math and science teaching by the age of 16, he or she has lost the  chance to be a scientist or an engineer. We must join together--parents,  teachers, grass roots groups, organized labor, and the business  community--to revitalize American education by setting a standard of  excellence.  
1983-42	1983	In 1983 we seek four major education goals: a quality education initiative  to encourage a substantial upgrading of math and science instruction  through block grants to the States; establishment of education savings  accounts that will give middle and lower-income families an incentive to  save for their children's college education and, at the same time,  encourage a real increase in savings for economic growth; passage of  tuition tax credits for parents who want to send their children to private  or religiously affiliated schools; a constitutional amendment to permit  voluntary school prayer. God should never have been expelled from America's  classrooms in the first place.  
1983-43	1983	Our commitment to fairness means that we must assure legal and economic  equity for women, and eliminate, once and for all, all traces of unjust  discrimination against women from the United States Code. We will not  tolerate wage discrimination based on sex, and we intend to strengthen  enforcement of child support laws to ensure that single parents, most of  whom are women, do not suffer unfair financial hardship. We will also take  action to remedy inequities in pensions. These initiatives will be joined  by others to continue our efforts to promote equity for women.  
1983-44	1983	Also in the area of fairness and equity, we will ask for extension of the  Civil Rights Commission, which is due to expire this year. The Commission  is an important part of the ongoing struggle for justice in America, and we  strongly support its reauthorization. Effective enforcement of our nation's  fair housing laws is also essential to ensuring equal opportunity. In the  year ahead, we'll work to strengthen enforcement of fair housing laws for  all Americans.  
1983-45	1983	The time has also come for major reform of our criminal justice statutes  and acceleration of the drive against organized crime and drug trafficking.  It's high time that we make our cities safe again. This administration  hereby declares an all-out war on big-time organized crime and the drug  racketeers who are poisoning our young people. We will also implement  recommendations of our Task Force on Victims of Crime, which will report to  me this week.  
1983-46	1983	American agriculture, the envy of the world, has become the victim of its  own successes. With one farmer now producing enough food to feed himself  and 77 other people, America is confronted with record surplus crops and  commodity prices below the cost of production. We must strive, through  innovations like the payment-in-kind crop swap approach and an aggressive  export policy, to restore health and vitality to rural America. Meanwhile,  I have instructed the Department of Agriculture to work individually with  farmers with debt problems to help them through these tough times.  
1983-47	1983	Over the past year, our Task Force on Private Sector Initiatives has  successfully forged a working partnership involving leaders of business,  labor, education, and government to address the training needs of American  workers. Thanks to the Task Force, private sector initiatives are now  underway in all 50 States of the Union, and thousands of working people  have been helped in making the shift from dead-end jobs and low-demand  skills to the growth areas of high technology and the service economy.  Additionally, a major effort will be focused on encouraging the expansion  of private community child care. The new advisory council on private sector  initiatives will carry on and extend this vital work of encouraging private  initiative in 1983.  
1983-48	1983	In the coming year, we will also act to improve the quality of life for  Americans by curbing the skyrocketing cost of health care that is becoming  an unbearable financial burden for so many. And we will submit legislation  to provide catastrophic illness insurance coverage for older Americans.  
1983-49	1983	I will also shortly submit a comprehensive federalism proposal that will  continue our efforts to restore to States and local governments their roles  as dynamic laboratories of change in a creative society.  
1983-50	1983	During the next several weeks, I will send to the Congress a series of  detailed proposals on these and other topics and look forward to working  with you on the development of these initiatives.  
1983-51	1983	So far, now, I've concentrated mainly on the problems posed by the future.  But in almost every home and workplace in America, we're already witnessing  reason for great hope--the first flowering of the manmade miracles of high  technology, a field pioneered and still led by our country.  
1983-52	1983	To many of us now, computers, silicon chips, data processing, cybernetics,  and all the other innovations of the dawning high technology age are as  mystifying as the workings of the combustion engine must have been when  that first Model T rattled down Main Street, U.S.A. But as surely as  America's pioneer spirit made us the industrial giant of the 20th century,  the same pioneer spirit today is opening up on another vast front of  opportunity, the frontier of high technology.  
1983-53	1983	In conquering the frontier we cannot write off our traditional industries,  but we must develop the skills and industries that will make us a pioneer  of tomorrow. This administration is committed to keeping America the  technological leader of the world now and into the 21st century.  
1983-54	1983	But let us turn briefly to the international arena. America's leadership in  the world came to us because of our own strength and because of the values  which guide us as a society: free elections, a free press, freedom of  religious choice, free trade unions, and above all, freedom for the  individual and rejection of the arbitrary power of the state. These values  are the bedrock of our strength. They unite us in a stewardship of peace  and freedom with our allies and friends in NATO, in Asia, in Latin America,  and elsewhere. They are also the values which in the recent past some among  us had begun to doubt and view with a cynical eye.  
1983-55	1983	Fortunately, we and our allies have rediscovered the strength of our common  democratic values, and we're applying them as a cornerstone of a  comprehensive strategy for peace with freedom. In London last year, I  announced the commitment of the United States to developing the  infrastructure of democracy throughout the world. We intend to pursue this  democratic initiative vigorously. The future belongs not to governments and  ideologies which oppress their peoples, but to democratic systems of  self-government which encourage individual initiative and guarantee  personal freedom.  
1983-56	1983	But our strategy for peace with freedom must also be based on  strength--economic strength and military strength. A strong American  economy is essential to the well-being and security of our friends and  allies. The restoration of a strong, healthy American economy has been and  remains one of the central pillars of our foreign policy. The progress I've  been able to report to you tonight will, I know, be as warmly welcomed by  the rest of the world as it is by the American people.  
1983-57	1983	We must also recognize that our own economic well-being is inextricably  linked to the world economy. We export over 20 percent of our industrial  production, and 40 percent of our farmland produces for export. We will  continue to work closely with the industrialized democracies of Europe and  Japan and with the International Monetary Fund to ensure it has adequate  resources to help bring the world economy back to strong, noninflationary  growth.  
1983-58	1983	As the leader of the West and as a country that has become great and rich  because of economic freedom, America must be an unrelenting advocate of  free trade. As some nations are tempted to turn to protectionism, our  strategy cannot be to follow them, but to lead the way toward freer trade.  To this end, in May of this year America will host an economic summit  meeting in Williamsburg, Virginia.  
1983-59	1983	As we begin our third year, we have put in place a defense program that  redeems the neglect of the past decade. We have developed a realistic  military strategy to deter threats to peace and to protect freedom if  deterrence fails. Our Armed Forces are finally properly paid; after years  of neglect are well trained and becoming better equipped and supplied. And  the American uniform is once again worn with pride. Most of the major  systems needed for modernizing our defenses are already underway, and we  will be addressing one key system, the MX missile, in consultation with the  Congress in a few months.  
1983-60	1983	America's foreign policy is once again based on bipartisanship, on realism,  strength, full partnership, in consultation with our allies, and  constructive negotiation with potential adversaries. From the Middle East  to southern Africa to Geneva, American diplomats are taking the initiative  to make peace and lower arms levels. We should be proud of our role as  peacemakers.  
1983-61	1983	In the Middle East last year, the United States played the major role in  ending the tragic fighting in Lebanon and negotiated the withdrawal of the  PLO from Beirut.  
1983-62	1983	Last September, I outlined principles to carry on the peace process begun  so promisingly at Camp David. All the people of the Middle East should know  that in the year ahead we will not flag in our efforts to build on that  foundation to bring them the blessings of peace.  
1983-63	1983	In Central America and the Caribbean Basin, we are likewise engaged in a  partnership for peace, prosperity, and democracy. Final passage of the  remaining portions of our Caribbean Basin Initiative, which passed the  House last year, is one of this administration's top legislative priorities  for 1983.  
1983-64	1983	The security and economic assistance policies of this administration in  Latin America and elsewhere are based on realism and represent a critical  investment in the future of the human race. This undertaking is a joint  responsibility of the executive and legislative branches, and I'm counting  on the cooperation and statesmanship of the Congress to help us meet this  essential foreign policy goal.  
1983-65	1983	At the heart of our strategy for peace is our relationship with the Soviet  Union. The past year saw a change in Soviet leadership. We're prepared for  a positive change in Soviet-American relations. But the Soviet Union must  show by deeds as well as words a sincere commitment to respect the rights  and sovereignty of the family of nations. Responsible members of the world  community do not threaten or invade their neighbors. And they restrain  their allies from aggression.  
1983-66	1983	For our part, we're vigorously pursuing arms reduction negotiations with  the Soviet Union. Supported by our allies, we've put forward draft  agreements proposing significant weapon reductions to equal and verifiable  lower levels. We insist on an equal balance of forces. And given the  overwhelming evidence of Soviet violations of international treaties  concerning chemical and biological weapons, we also insist that any  agreement we sign can and will be verifiable.  
1983-67	1983	In the case of intermediate-range nuclear forces, we have proposed the  complete elimination of the entire class of land-based missiles. We're also  prepared to carefully explore serious Soviet proposals. At the same time,  let me emphasize that allied steadfastness remains a key to achieving arms  reductions.  
1983-68	1983	With firmness and dedication, we'll continue to negotiate. Deep down, the  Soviets must know it's in their interest as well as ours to prevent a  wasteful arms race. And once they recognize our unshakable resolve to  maintain adequate deterrence, they will have every reason to join us in the  search for greater security and major arms reductions. When that moment  comes--and I'm confident that it will--we will have taken an important step  toward a more peaceful future for all the world's people.  
1983-69	1983	A very wise man, Bernard Baruch, once said that America has never forgotten  the nobler things that brought her into being and that light her path. Our  country is a special place, because we Americans have always been  sustained, through good times and bad, by a noble vision--a vision not only  of what the world around us is today but what we as a free people can make  it be tomorrow.  
1983-70	1983	We're realists; we solve our problems instead of ignoring them, no matter  how loud the chorus of despair around us. But we're also idealists, for it  was an ideal that brought our ancestors to these shores from every corner  of the world.  
1983-71	1983	Right now we need both realism and idealism. Millions of our neighbors are  without work. It is up to us to see they aren't without hope. This is a  task for all of us. And may I say, Americans have rallied to this cause,  proving once again that we are the most generous people on Earth.  
1983-72	1983	We who are in government must take the lead in restoring the economy. And  here all that time, I thought you were reading the paper.  
1983-73	1983	The single thing--the single thing that can start the wheels of industry  turning again is further reduction of interest rates. Just another 1 or 2  points can mean tens of thousands of jobs.  
1983-74	1983	Right now, with inflation as low as it is, 3.9 percent, there is room for  interest rates to come down. Only fear prevents their reduction. A lender,  as we know, must charge an interest rate that recovers the depreciated  value of the dollars loaned. And that depreciation is, of course, the  amount of inflation. Today, interest rates are based on fear--fear that  government will resort to measures, as it has in the past, that will send  inflation zooming again.  
1983-75	1983	We who serve here in this Capital must erase that fear by making it  absolutely clear that we will not stop fighting inflation; that, together,  we will do only those things that will lead to lasting economic growth.  
1983-76	1983	Yes, the problems confronting us are large and forbidding. And, certainly,  no one can or should minimize the plight of millions of our friends and  neighbors who are living in the bleak emptiness of unemployment. But we  must and can give them good reason to be hopeful.  
1983-77	1983	Back over the years, citizens like ourselves have gathered within these  walls when our nation was threatened; sometimes when its very existence was  at stake. Always with courage and common sense, they met the crises of  their time and lived to see a stronger, better, and more prosperous  country. The present situation is no worse and, in fact, is not as bad as  some of those they faced. Time and again, they proved that there is nothing  we Americans cannot achieve as free men and women.  
1983-78	1983	Yes, we still have problems--plenty of them. But it's just plain  wrong--unjust to our country and unjust to our people--to let those  problems stand in the way of the most important truth of all: America is on  the mend.  
1983-79	1983	We owe it to the unfortunate to be aware of their plight and to help them  in every way we can. No one can quarrel with that. We must and do have  compassion for all the victims of this economic crisis. But the big story  about America today is the way that millions of confident, caring  people--those extraordinary "ordinary" Americans who never make the  headlines and will never be interviewed--are laying the foundation, not  just for recovery from our present problems but for a better tomorrow for  all our people.  
1983-80	1983	From coast to coast, on the job and in classrooms and laboratories, at new  construction sites and in churches and community groups, neighbors are  helping neighbors. And they've already begun the building, the research,  the work, and the giving that will make our country great again.  
1983-81	1983	I believe this, because I believe in them--in the strength of their hearts  and minds, in the commitment that each one of them brings to their daily  lives, be they high or humble. The challenge for us in government is to be  worthy of them--to make government a help, not a hindrance to our people in  the challenging but promising days ahead.  
1983-82	1983	If we do that, if we care what our children and our children's children  will say of us, if we want them one day to be thankful for what we did here  in these temples of freedom, we will work together to make America better  for our having been here--not just in this year or this decade but in the  next century and beyond.  
1983-83	1983	Thank you, and God bless you.  
1983-84	1983	NOTE: The President spoke at 9:03 p.m. in the House Chamber of the Capitol.  He was introduced by Thomas P. O'Neill, Jr., Speaker of the House of  Representatives. The address was broadcast live on nationwide radio  and television.  
1984-1	1984	Mr. Speaker, Mr. President, distinguished Members of the Congress, honored  guests, and fellow citizens:  
1984-2	1984	Once again, in keeping with time-honored tradition, I have come to report  to you on the state of the Union, and I'm pleased to report that America is  much improved, and there's good reason to believe that improvement will  continue through the days to come.  
1984-3	1984	You and I have had some honest and open differences in the year past. But  they didn't keep us from joining hands in bipartisan cooperation to stop a  long decline that had drained this nation's spirit and eroded its health.  There is renewed energy and optimism throughout the land. America is back,  standing tall, looking to the eighties with courage, confidence, and hope.  
1984-4	1984	The problems we're overcoming are not the heritage of one person, party, or  even one generation. It's just the tendency of government to grow, for  practices and programs to become the nearest thing to eternal life we'll  ever see on this Earth. And there's always that well-intentioned chorus of  voices saying, "With a little more power and a little more money, we could  do so much for the people." For a time we forgot the American dream isn't  one of making government bigger; it's keeping faith with the mighty spirit  of free people under God.  
1984-5	1984	As we came to the decade of the eighties, we faced the worst crisis in our  postwar history. In the seventies were years of rising problems and falling  confidence. There was a feeling government had grown beyond the consent of  the governed. Families felt helpless in the face of mounting inflation and  the indignity of taxes that reduced reward for hard work, thrift, and  risktaking. All this was overlaid by an evergrowing web of rules and  regulations.  
1984-6	1984	On the international scene, we had an uncomfortable feeling that we'd lost  the respect of friend and foe. Some questioned whether we had the will to  defend peace and freedom. But America is too great for small dreams. There  was a hunger in the land for a spiritual revival; if you will, a crusade  for renewal. The American people said: Let us look to the future with  confidence, both at home and abroad. Let us give freedom a chance.  
1984-7	1984	Americans were ready to make a new beginning, and together we have done it.  We're confronting our problems one by one. Hope is alive tonight for  millions of young families and senior citizens set free from unfair tax  increases and crushing inflation. Inflation has been beaten down from 12.4  to 3.2 percent, and that's a great victory for all the people. The prime  rate has been cut almost in half, and we must work together to bring it  down even more.  
1984-8	1984	Together, we passed the first across-the-board tax reduction for everyone  since the Kennedy tax cuts. Next year, tax rates will be indexed so  inflation can't push people into higher brackets when they get  cost-of-living pay raises. Government must never again use inflation to  profit at the people's expense.  
1984-9	1984	Today a working family earning $25,000 has $1,100 more in purchasing power  than if tax and inflation rates were still at the 1980 levels. Real  after-tax income increased 5 percent last year. And economic deregulation  of key industries like transportation has offered more chances--or  choices, I should say, to consumers and new changes--or chances for  entrepreneurs and protecting safety. Tonight, we can report and be proud of  one of the best recoveries in decades. Send away the handwringers and the  doubting Thomases. Hope is reborn for couples dreaming of owning homes and  for risktakers with vision to create tomorrow's opportunities.  
1984-10	1984	The spirit of enterprise is sparked by the sunrise industries of high-tech  and by small business people with big ideas--people like Barbara Proctor,  who rose from a ghetto to build a multimillion-dollar advertising agency in  Chicago; Carlos Perez, a Cuban refugee, who turned $27 and a dream into a  successful importing business in Coral Gables, Florida.  
1984-11	1984	People like these are heroes for the eighties. They helped 4 million  Americans find jobs in 1983. More people are drawing paychecks tonight than  ever before. And Congress helps--or progress helps everyone--well, Congress  does too----everyone. In 1983 women filled 73 percent of all the new jobs  in managerial, professional, and technical fields.  
1984-12	1984	But we know that many of our fellow countrymen are still out of work,  wondering what will come of their hopes and dreams. Can we love America and  not reach out to tell them: You are not forgotten; we will not rest until  each of you can reach as high as your God-given talents will take you.  
1984-13	1984	The heart of America is strong; it's good and true. The cynics were wrong;  America never was a sick society. We're seeing rededication to bedrock  values of faith, family, work, neighborhood, peace, and freedom--values  that help bring us together as one people, from the youngest child to the  most senior citizen.  
1984-14	1984	The Congress deserves America's thanks for helping us restore pride and  credibility to our military. And I hope that you're as proud as I am of the  young men and women in uniform who have volunteered to man the ramparts in  defense of freedom and whose dedication, valor, and skill increases so much  our chance of living in a world at peace.  
1984-15	1984	People everywhere hunger for peace and a better life. The tide of the  future is a freedom tide, and our struggle for democracy cannot and will  not be denied. This nation champions peace that enshrines liberty,  democratic rights, and dignity for every individual. America's new  strength, confidence, and purpose are carrying hope and opportunity far  from our shores. A world economic recovery is underway. It began here.  
1984-16	1984	We've journeyed far, but we have much farther to go. Franklin Roosevelt  told us 50 years ago this month: "Civilization can not go back;  civilization must not stand still. We have undertaken new methods. It is  our task to perfect, to improve, to alter when necessary, but in all cases  to go forward."  
1984-17	1984	It's time to move forward again, time for America to take freedom's next  step. Let us unite tonight behind four great goals to keep America free,  secure, and at peace in the eighties together.  
1984-18	1984	We can ensure steady economic growth. We can develop America's next  frontier. We can strengthen our traditional values. And we can build a  meaningful peace to protect our loved ones and this shining star of faith  that has guided millions from tyranny to the safe harbor of freedom,  progress, and hope.  
1984-19	1984	Doing these things will open wider the gates of opportunity, provide  greater security for all, with no barriers of bigotry or discrimination.  
1984-20	1984	The key to a dynamic decade is vigorous economic growth, our first great  goal. We might well begin with common sense in Federal budgeting:  government spending no more than government takes in.  
1984-21	1984	We must bring Federal deficits down. But how we do that makes all the  difference.  
1984-22	1984	We can begin by limiting the size and scope of government. Under the  leadership of Vice President Bush, we have reduced the growth of Federal  regulations by more than 25 percent and cut well over 300 million hours of  government-required paperwork each year. This will save the public more  than $150 billion over the next 10 years.  
1984-23	1984	The Grace commission has given us some 2,500 recommendations for reducing  wasteful spending, and they're being examined throughout the  administration. Federal spending growth has been cut from 17.4 percent in  1980 to less than half of that today, and we have already achieved over  $300 billion in budget savings for the period of 1982 to '86. But that's  only a little more than half of what we sought. Government is still  spending too large a percentage of the total economy.  
1984-24	1984	Now, some insist that any further budget savings must be obtained by  reducing the portion spent on defense. This ignores the fact that national  defense is solely the responsibility of the Federal Government; indeed, it  is its prime responsibility. And yet defense spending is less than a third  of the total budget. During the years of President Kennedy and of the years  before that, defense was almost half the total budget. And then came  several years in which our military capability was allowed to deteriorate  to a very dangerous degree. We are just now restoring, through the  essential modernization of our conventional and strategic forces, our  capability to meet our present and future security needs. We dare not shirk  our responsibility to keep America free, secure, and at peace.  
1984-25	1984	The last decade saw domestic spending surge literally out of control. But  the basis for such spending had been laid in previous years. A pattern of  overspending has been in place for half a century. As the national debt  grew, we were told not to worry, that we owed it to ourselves.  
1984-26	1984	Now we know that deficits are a cause for worry. But there's a difference  of opinion as to whether taxes should be increased, spending cut, or some  of both. Fear is expressed that government borrowing to fund the deficit  could inhibit the economic recovery by taking capital needed for business  and industrial expansion. Well, I think that debate is missing an important  point. Whether government borrows or increases taxes, it will be taking the  same amount of money from the private sector, and, either way, that's too  much. Simple fairness dictates that government must not raise taxes on  families struggling to pay their bills. The root of the problem is that  government's share is more than we can afford if we're to have a sound  economy.  
1984-27	1984	We must bring down the deficits to ensure continued economic growth. In the  budget that I will submit on February 1st, I will recommend measures that  will reduce the deficit over the next 5 years. Many of these will be  unfinished business from last year's budget.  
1984-28	1984	Some could be enacted quickly if we could join in a serious effort to  address this problem. I spoke today with Speaker of the House O'Neill,  Senate Majority Leader Baker, Senate Minority Leader Byrd, and House  Minority Leader Michel. I asked them if they would designate congressional  representatives to meet with representatives of the administration to try  to reach prompt agreement on a bipartisan deficit reduction plan. I know it  would take a long, hard struggle to agree on a full-scale plan. So, what I  have proposed is that we first see if we can agree on a down payment.  
1984-29	1984	Now, I believe there is basis for such an agreement, one that could reduce  the deficits by about a hundred billion dollars over the next 3 years. We  could focus on some of the less contentious spending cuts that are still  pending before the Congress. These could be combined with measures to close  certain tax loopholes, measures that the Treasury Department has previously  said to be worthy of support. In addition, we could examine the possibility  of achieving further outlay savings based on the work of the Grace  commission.  
1984-30	1984	If the congressional leadership is willing, my representatives will be  prepared to meet with theirs at the earliest possible time. I would hope  the leadership might agree on an expedited timetable in which to develop  and enact that down payment.  
1984-31	1984	But a down payment alone is not enough to break us out of the deficit  problem. It could help us start on the right path. Yet, we must do more.  So, I propose that we begin exploring how together we can make structural  reforms to curb the built-in growth of spending.  
1984-32	1984	I also propose improvements in the budgeting process. Some 43 of our 50  States grant their Governors the right to veto individual items in  appropriation bills without having to veto the entire bill. California is  one of those 43 States. As Governor, I found this line-item veto was a  powerful tool against wasteful or extravagant spending. It works in 43  States. Let's put it to work in Washington for all the people.  
1984-33	1984	It would be most effective if done by constitutional amendment. The  majority of Americans approve of such an amendment, just as they and I  approve of an amendment mandating a balanced Federal budget. Many States  also have this protection in their constitutions.  
1984-34	1984	To talk of meeting the present situation by increasing taxes is a Band-Aid  solution which does nothing to cure an illness that's been coming on for  half a century--to say nothing of the fact that it poses a real threat to  economic recovery. Let's remember that a substantial amount of income tax  is presently owed and not paid by people in the underground economy. It  would be immoral to make those who are paying taxes pay more to compensate  for those who aren't paying their share.  
1984-35	1984	There's a better way. Let us go forward with an historic reform for  fairness, simplicity, and incentives for growth. I am asking Secretary Don  Regan for a plan for action to simplify the entire tax code, so all  taxpayers, big and small, are treated more fairly. And I believe such a  plan could result in that underground economy being brought into the  sunlight of honest tax compliance. And it could make the tax base broader,  so personal tax rates could come down, not go up. I've asked that specific  recommendations, consistent with those objectives, be presented to me by  December 1984.  
1984-36	1984	Our second great goal is to build on America's pioneer spirit--I said  something funny? I said America's next frontier--and that's to develop that  frontier. A sparkling economy spurs initiatives, sunrise industries, and  makes older ones more competitive.  
1984-37	1984	Nowhere is this more important than our next frontier: space. Nowhere do we  so effectively demonstrate our technological leadership and ability to make  life better on Earth. The Space Age is barely a quarter of a century old.  But already we've pushed civilization forward with our advances in science  and technology. Opportunities and jobs will multiply as we cross new  thresholds of knowledge and reach deeper into the unknown.  
1984-38	1984	Our progress in space--taking giant steps for all mankind--is a tribute to  American teamwork and excellence. Our finest minds in government, industry,  and academia have all pulled together. And we can be proud to say: We are  first; we are the best; and we are so because we're free.  
1984-39	1984	America has always been greatest when we dared to be great. We can reach  for greatness again. We can follow our dreams to distant stars, living and  working in space for peaceful, economic, and scientific gain. Tonight, I am  directing NASA to develop a permanently manned space station and to do it  within a decade.  
1984-40	1984	A space station will permit quantum leaps in our research in science,  communications, in metals, and in lifesaving medicines which could be  manufactured only in space. We want our friends to help us meet these  challenges and share in their benefits. NASA will invite other countries to  participate so we can strengthen peace, build prosperity, and expand  freedom for all who share our goals.  
1984-41	1984	Just as the oceans opened up a new world for clipper ships and Yankee  traders, space holds enormous potential for commerce today. The market for  space transportation could surpass our capacity to develop it. Companies  interested in putting payloads into space must have ready access to private  sector launch services. The Department of Transportation will help an  expendable launch services industry to get off the ground. We'll soon  implement a number of executive initiatives, develop proposals to ease  regulatory constraints, and, with NASA's help, promote private sector  investment in space.  
1984-42	1984	And as we develop the frontier of space, let us remember our responsibility  to preserve our older resources here on Earth. Preservation of our  environment is not a liberal or conservative challenge, it's common sense.  
1984-43	1984	Though this is a time of budget constraints, I have requested for EPA one  of the largest percentage budget increases of any agency. We will begin the  long, necessary effort to clean up a productive recreational area and a  special national resource--the Chesapeake Bay.  
1984-44	1984	To reduce the threat posed by abandoned hazardous waste dumps, EPA will  spend $410 million. And I will request a supplemental increase of 50  million. And because the Superfund law expires in 1985, I've asked Bill  Ruckelshaus to develop a proposal for its extension so there'll be  additional time to complete this important task.  
1984-45	1984	On the question of acid rain, which concerns people in many areas of the  United States and Canada, I'm proposing a research program that doubles our  current funding. And we'll take additional action to restore our lakes and  develop new technology to reduce pollution that causes acid rain.  
1984-46	1984	We have greatly improved the conditions of our natural resources. We'll ask  the Congress for $157 million beginning in 1985 to acquire new park and  conservation lands. The Department of the Interior will encourage careful,  selective exploration and production on our vital resources in an Exclusive  Economic Zone within the 200-mile limit off our coasts--but with strict  adherence to environmental laws and with fuller State and public  participation.  
1984-47	1984	But our most precious resources, our greatest hope for the future, are the  minds and hearts of our people, especially our children. We can help them  build tomorrow by strengthening our community of shared values. This must  be our third great goal. For us, faith, work, family, neighborhood,  freedom, and peace are not just words; they're expressions of what America  means, definitions of what makes us a good and loving people.  
1984-48	1984	Families stand at the center of our society. And every family has a  personal stake in promoting excellence in education. Excellence does not  begin in Washington. A 600-percent increase in Federal spending on  education between 1960 and 1980 was accompanied by a steady decline in  Scholastic Aptitude Test scores. Excellence must begin in our homes and  neighborhood schools, where it's the responsibility of every parent and  teacher and the right of every child.  
1984-49	1984	Our children come first, and that's why I established a bipartisan National  Commission on Excellence in Education, to help us chart a commonsense  course for better education. And already, communities are implementing the  Commission's recommendations. Schools are reporting progress in math and  reading skills. But we must do more to restore discipline to schools; and  we must encourage the teaching of new basics, reward teachers of merit,  enforce tougher standards, and put our parents back in charge.  
1984-50	1984	I will continue to press for tuition tax credits to expand opportunities  for families and to soften the double payment for those paying public  school taxes and private school tuition. Our proposal would target  assistance to low- and middle-income families. Just as more incentives are  needed within our schools, greater competition is needed among our schools.  Without standards and competition, there can be no champions, no records  broken, no excellence in education or any other walk of life.  
1984-51	1984	And while I'm on this subject, each day your Members observe a 200-year-old  tradition meant to signify America is one nation under God. I must ask: If  you can begin your day with a member of the clergy standing right here  leading you in prayer, then why can't freedom to acknowledge God be enjoyed  again by children in every schoolroom across this land?  
1984-52	1984	America was founded by people who believed that God was their rock of  safety. He is ours. I recognize we must be cautious in claiming that God is  on our side, but I think it's all right to keep asking if we're on His  side.  
1984-53	1984	During our first 3 years, we have joined bipartisan efforts to restore  protection of the law to unborn children. Now, I know this issue is very  controversial. But unless and until it can be proven that an unborn child  is not a living human being, can we justify assuming without proof that it  isn't? No one has yet offered such proof; indeed, all the evidence is to  the contrary. We should rise above bitterness and reproach, and if  Americans could come together in a spirit of understanding and helping,  then we could find positive solutions to the tragedy of abortion.  
1984-54	1984	Economic recovery, better education, rededication to values, all show the  spirit of renewal gaining the upper hand. And all will improve family life  in the eighties. But families need more. They need assurance that they and  their loved ones can walk the streets of America without being afraid.  Parents need to know their children will not be victims of child  pornography and abduction. This year we will intensify our drive against  these and other horrible crimes like sexual abuse and family violence.  
1984-55	1984	Already our efforts to crack down on career criminals, organized crime,  drugpushers, and to enforce tougher sentences and paroles are having  effect. In 1982 the crime rate dropped by 4.3 percent, the biggest decline  since 1972. Protecting victims is just as important as safeguarding the  rights of defendants.  
1984-56	1984	Opportunities for all Americans will increase if we move forward in fair  housing and work to ensure women's rights, provide for equitable treatment  in pension benefits and Individual Retirement Accounts, facilitate child  care, and enforce delinquent parent support payments.  
1984-57	1984	It's not just the home but the workplace and community that sustain our  values and shape our future. So, I ask your help in assisting more  communities to break the bondage of dependency. Help us to free enterprise  by permitting debate and voting "yes" on our proposal for enterprise zones  in America. This has been before you for 2 years. Its passage can help  high-unemployment areas by creating jobs and restoring neighborhoods.  
1984-58	1984	A society bursting with opportunities, reaching for its future with  confidence, sustained by faith, fair play, and a conviction that good and  courageous people will flourish when they're free--these are the secrets of  a strong and prosperous America at peace with itself and the world.  
1984-59	1984	A lasting and meaningful peace is our fourth great goal. It is our highest  aspiration. And our record is clear: Americans resort to force only when we  must. We have never been aggressors. We have always struggled to defend  freedom and democracy.  
1984-60	1984	We have no territorial ambitions. We occupy no countries. We build no walls  to lock people in. Americans build the future. And our vision of a better  life for farmers, merchants, and working people, from the Americas to Asia,  begins with a simple premise: The future is best decided by ballots, not  bullets.  
1984-61	1984	Governments which rest upon the consent of the governed do not wage war on  their neighbors. Only when people are given a personal stake in deciding  their own destiny, benefiting from their own risks, do they create  societies that are prosperous, progressive, and free. Tonight, it is  democracies that offer hope by feeding the hungry, prolonging life, and  eliminating drudgery.  
1984-62	1984	When it comes to keeping America strong, free, and at peace, there should  be no Republicans or Democrats, just patriotic Americans. We can decide the  tough issues not by who is right, but by what is right.  
1984-63	1984	Together, we can continue to advance our agenda for peace. We can establish  a more stable basis for peaceful relations with the Soviet Union;  strengthen allied relations across the board; achieve real and equitable  reductions in the levels of nuclear arms; reinforce our peacemaking efforts  in the Middle East, Central America, and southern Africa; or assist  developing countries, particularly our neighbors in the Western Hemisphere;  and assist in the development of democratic institutions throughout the  world.  
1984-64	1984	The wisdom of our bipartisan cooperation was seen in the work of the  Scowcroft commission, which strengthened our ability to deter war and  protect peace. In that same spirit, I urge you to move forward with the  Henry Jackson plan to implement the recommendations of the Bipartisan  Commission on Central America.  
1984-65	1984	Your joint resolution on the multinational peacekeeping force in Lebanon is  also serving the cause of peace. We are making progress in Lebanon. For  nearly 10 years, the Lebanese have lived from tragedy to tragedy with no  hope for their future. Now the multinational peacekeeping force and our  marines are helping them break their cycle of despair. There is hope for a  free, independent, and sovereign Lebanon. We must have the courage to give  peace a chance. And we must not be driven from our objectives for peace in  Lebanon by state-sponsored terrorism. We have seen this ugly specter in  Beirut, Kuwait, and Rangoon. It demands international attention. I will  forward shortly legislative proposals to help combat terrorism. And I will  be seeking support from our allies for concerted action.  
1984-66	1984	Our NATO alliance is strong. 1983 was a banner year for political courage.  And we have strengthened our partnerships and our friendships in the Far  East. We're committed to dialog, deterrence, and promoting prosperity.  We'll work with our trading partners for a new round of negotiations in  support of freer world trade, greater competition, and more open markets.  
1984-67	1984	A rebirth of bipartisan cooperation, of economic growth, and military  deterrence, and a growing spirit of unity among our people at home and our  allies abroad underline a fundamental and far-reaching change: The United  States is safer, stronger, and more secure in 1984 than before. We can now  move with confidence to seize the opportunities for peace, and we will.  
1984-68	1984	Tonight, I want to speak to the people of the Soviet Union, to tell them  it's true that our governments have had serious differences, but our sons  and daughters have never fought each other in war. And if we Americans have  our way, they never will.  
1984-69	1984	People of the Soviet Union, there is only one sane policy, for your country  and mine, to preserve our civilization in this modern age: A nuclear war  cannot be won and must never be fought. The only value in our two nations  possessing nuclear weapons is to make sure they will never be used. But  then would it not be better to do away with them entirely?  
1984-70	1984	People of the Soviet, President Dwight Eisenhower, who fought by your side  in World War II, said the essential struggle "is not merely man against man  or nation against nation. It is man against war." Americans are people of  peace. If your government wants peace, there will be peace. We can come  together in faith and friendship to build a safer and far better world for  our children and our children's children. And the whole world will rejoice.  That is my message to you.  
1984-71	1984	Some days when life seems hard and we reach out for values to sustain us or  a friend to help us, we find a person who reminds us what it means to be  Americans.  
1984-72	1984	Sergeant Stephen Trujillo, a medic in the 2d Ranger Battalion, 75th  Infantry, was in the first helicopter to land at the compound held by Cuban  forces in Grenada. He saw three other helicopters crash. Despite the  imminent explosion of the burning aircraft, he never hesitated. He ran  across 25 yards of open terrain through enemy fire to rescue wounded  soldiers. He directed two other medics, administered first aid, and  returned again and again to the crash site to carry his wounded friends to  safety.  
1984-73	1984	Sergeant Trujillo, you and your fellow service men and women not only saved  innocent lives; you set a nation free. You inspire us as a force for  freedom, not for despotism; and, yes, for peace, not conquest. God bless  you.  
1984-74	1984	And then there are unsung heroes: single parents, couples, church and civic  volunteers. Their hearts carry without complaint the pains of family and  community problems. They soothe our sorrow, heal our wounds, calm our  fears, and share our joy.  
1984-75	1984	A person like Father Ritter is always there. His Covenant House programs in  New York and Houston provide shelter and help to thousands of frightened  and abused children each year. The same is true of Dr. Charles Carson.  Paralyzed in a plane crash, he still believed nothing is impossible. Today  in Minnesota, he works 80 hours a week without pay, helping pioneer the  field of computer-controlled walking. He has given hope to 500,000  paralyzed Americans that some day they may walk again.  
1984-76	1984	How can we not believe in the greatness of America? How can we not do what  is right and needed to preserve this last best hope of man on Earth? After  all our struggles to restore America, to revive confidence in our country,  hope for our future, after all our hard-won victories earned through the  patience and courage of every citizen, we cannot, must not, and will not  turn back. We will finish our job. How could we do less? We're Americans.  
1984-77	1984	Carl Sandburg said, "I see America not in the setting sun of a black night  of despair... I see America in the crimson light of a rising sun fresh  from the burning, creative hand of God... I see great days ahead for men  and women of will and vision."  
1984-78	1984	I've never felt more strongly that America's best days and democracy's best  days lie ahead. We're a powerful force for good. With faith and courage, we  can perform great deeds and take freedom's next step. And we will. We will  carry on the tradition of a good and worthy people who have brought light  where there was darkness, warmth where there was cold, medicine where there  was disease, food where there was hunger, and peace where there was only  bloodshed.  
1984-79	1984	Let us be sure that those who come after will say of us in our time, that  in our time we did everything that could be done. We finished the race; we  kept them free; we kept the faith.  
1984-80	1984	Thank you very much. God bless you, and God bless America.  
1984-81	1984	NOTE: The President spoke at 9:02 p.m. in the House Chamber of the Capitol.  He was introduced by Thomas P. O'Neill, Jr., Speaker of the House of  Representatives. The address was broadcast live on nationwide radio and  television.  
1985-1	1985	Mr. Speaker, Mr. President, distinguished Members of the Congress, honored  guests, and fellow citizens:  
1985-2	1985	I come before you to report on the state of our Union, and I'm pleased to  report that after 4 years of united effort, the American people have  brought forth a nation renewed, stronger, freer, and more secure than  before.  
1985-3	1985	Four years ago we began to change, forever I hope, our assumptions about  government and its place in our lives. Out of that change has come great  and robust growth--in our confidence, our economy, and our role in the  world.  
1985-4	1985	Tonight America is stronger because of the values that we hold dear. We  believe faith and freedom must be our guiding stars, for they show us  truth, they make us brave, give us hope, and leave us wiser than we were.  Our progress began not in Washington, DC, but in the hearts of our  families, communities, workplaces, and voluntary groups which, together,  are unleashing the invincible spirit of one great nation under God.  
1985-5	1985	Four years ago we said we would invigorate our economy by giving people  greater freedom and incentives to take risks and letting them keep more of  what they earned. We did what we promised, and a great industrial giant is  reborn.  
1985-6	1985	Tonight we can take pride in 25 straight months of economic growth, the  strongest in 34 years; a 3-year inflation average of 3.9 percent, the  lowest in 17 years; and 7.3 million new jobs in 2 years, with more of our  citizens working than ever before.  
1985-7	1985	New freedom in our lives has planted the rich seeds for future success:  
1985-8	1985	For an America of wisdom that honors the family, knowing that if (as) the  family goes, so goes our civilization;  
1985-9	1985	For an America of vision that sees tomorrow's dreams in the learning and  hard work we do today;  
1985-10	1985	For an America of courage whose service men and women, even as we meet,  proudly stand watch on the frontiers of freedom;  
1985-11	1985	For an America of compassion that opens its heart to those who cry out for  help.  
1985-12	1985	We have begun well. But it's only a beginning. We're not here to  congratulate ourselves on what we have done but to challenge ourselves to  finish what has not yet been done.  
1985-13	1985	We're here to speak for millions in our inner cities who long for real  jobs, safe neighborhoods, and schools that truly teach. We're here to speak  for the American farmer, the entrepreneur, and every worker in industries  fighting to modernize and compete. And, yes, we're here to stand, and  proudly so, for all who struggle to break free from totalitarianism, for  all who know in their hearts that freedom is the one true path to peace and  human happiness.  
1985-14	1985	Proverbs tell us, without a vision the people perish. When asked what great  principle holds our Union together, Abraham Lincoln said: "Something in  (the) Declaration giving liberty, not alone to the people of this country,  but hope to the world for all future time."  
1985-15	1985	We honor the giants of our history not by going back but forward to the  dreams their vision foresaw. My fellow citizens, this nation is poised for  greatness. The time has come to proceed toward a great new challenge--a  second American Revolution of hope and opportunity; a revolution carrying  us to new heights of progress by pushing back frontiers of knowledge and  space; a revolution of spirit that taps the soul of America, enabling us to  summon greater strength than we've ever known; and a revolution that  carries beyond our shores the golden promise of human freedom in a world of  peace.  
1985-16	1985	Let us begin by challenging our conventional wisdom. There are no  constraints on the human mind, no walls around the human spirit, no  barriers to our progress except those we ourselves erect. Already, pushing  down tax rates has freed our economy to vault forward to record growth.  
1985-17	1985	In Europe, they're calling it "the American Miracle." Day by day, we're  shattering accepted notions of what is possible. When I was growing up, we  failed to see how a new thing called radio would transform our marketplace.  Well, today, many have not yet seen how advances in technology are  transforming our lives.  
1985-18	1985	In the late 1950's workers at the AT&T semiconductor plant in Pennsylvania  produced five transistors a day for $7.50 apiece. They now produce over a  million for less than a penny apiece.  
1985-19	1985	New laser techniques could revolutionize heart bypass surgery, cut  diagnosis time for viruses linked to cancer from weeks to minutes, reduce  hospital costs dramatically, and hold out new promise for saving human  lives.  
1985-20	1985	Our automobile industry has overhauled assembly lines, increased worker  productivity, and is competitive once again.  
1985-21	1985	We stand on the threshold of a great ability to produce more, do more, be  more. Our economy is not getting older and weaker; it's getting younger and  stronger. It doesn't need rest and supervision; it needs new challenge,  greater freedom. And that word "freedom" is the key to the second American  revolution that we need to bring about.  
1985-22	1985	Let us move together with an historic reform of tax simplification for  fairness and growth. Last year I asked Treasury Secretary-then-Regan to  develop a plan to simplify the tax code, so all taxpayers would be treated  more fairly and personal tax rates could come further down.  
1985-23	1985	We have cut tax rates by almost 25 percent, yet the tax system remains  unfair and limits our potential for growth. Exclusions and exemptions cause  similar incomes to be taxed at different levels. Low-income families face  steep tax barriers that make hard lives even harder. The Treasury  Department has produced an excellent reform plan, whose principles will  guide the final proposal that we will ask you to enact.  
1985-24	1985	One thing that tax reform will not be is a tax increase in disguise. We  will not jeopardize the mortgage interest deduction that families need. We  will reduce personal tax rates as low as possible by removing many tax  preferences. We will propose a top rate of no more than 35 percent, and  possibly lower. And we will propose reducing corporate rates, while  maintaining incentives for capital formation.  
1985-25	1985	To encourage opportunity and jobs rather than dependency and welfare, we  will propose that individuals living at or near the poverty line be totally  exempt from Federal income tax. To restore fairness to families, we will  propose increasing significantly the personal exemption.  
1985-26	1985	And tonight, I am instructing Treasury Secretary James Baker--I have to get  used to saying that--to begin working with congressional authors and  committees for bipartisan legislation conforming to these principles. We  will call upon the American people for support and upon every man and woman  in this Chamber. Together, we can pass, this year, a tax bill for fairness,  simplicity, and growth, making this economy the engine of our dreams and  America the investment capital of the world. So let us begin.  
1985-27	1985	Tax simplification will be a giant step toward unleashing the tremendous  pent-up power of our economy. But a second American revolution must carry  the promise of opportunity for all. It is time to liberate the spirit of  enterprise in the most distressed areas of our country.  
1985-28	1985	This government will meet its responsibility to help those in need. But  policies that increase dependency, break up families, and destroy  self-respect are not progressive; they're reactionary. Despite our strides  in civil rights, blacks, Hispanics, and all minorities will not have full  and equal power until they have full economic power.  
1985-29	1985	We have repeatedly sought passage of enterprise zones to help those in the  abandoned corners of our land find jobs, learn skills, and build better  lives. This legislation is supported by a majority of you.  
1985-30	1985	Mr. Speaker, I know we agree that there must be no forgotten Americans.  Let us place new dreams in a million hearts and create a new generation of  entrepreneurs by passing enterprise zones this year. And, Tip, you could  make that a birthday present.  
1985-31	1985	Nor must we lose the chance to pass our youth employment opportunity wage  proposal. We can help teenagers, who have the highest unemployment rate,  find summer jobs, so they can know the pride of work and have confidence in  their futures.  
1985-32	1985	We'll continue to support the Job Training Partnership Act, which has a  nearly two-thirds job placement rate. Credits in education and health care  vouchers will help working families shop for services that they need.  
1985-33	1985	Our administration is already encouraging certain low-income public housing  residents to own and manage their own dwellings. It's time that all public  housing residents have that opportunity of ownership.  
1985-34	1985	The Federal Government can help create a new atmosphere of freedom. But  States and localities, many of which enjoy surpluses from the recovery,  must not permit their tax and regulatory policies to stand as barriers to  growth.  
1985-35	1985	Let us resolve that we will stop spreading dependency and start spreading  opportunity; that we will stop spreading bondage and start spreading  freedom.  
1985-36	1985	There are some who say that growth initiatives must await final action on  deficit reductions. Well, the best way to reduce deficits is through  economic growth. More businesses will be started, more investments made,  more jobs created, and more people will be on payrolls paying taxes. The  best way to reduce government spending is to reduce the need for spending  by increasing prosperity. Each added percentage point per year of real GNP  growth will lead to cumulative reduction in deficits of nearly $200 billion  over 5 years.  
1985-37	1985	To move steadily toward a balanced budget, we must also lighten  government's claim on our total economy. We will not do this by raising  taxes. We must make sure that our economy grows faster than the growth in  spending by the Federal Government. In our fiscal year 1986 budget, overall  government program spending will be frozen at the current level. It must  not be one dime higher than fiscal year 1985, and three points are key.  
1985-38	1985	First, the social safety net for the elderly, the needy, the disabled, and  unemployed will be left intact. Growth of our major health care programs,  Medicare and Medicaid, will be slowed, but protections for the elderly and  needy will be preserved.  
1985-39	1985	Second, we must not relax our efforts to restore military strength just as  we near our goal of a fully equipped, trained, and ready professional  corps. National security is government's first responsibility; so in past  years defense spending took about half the Federal budget. Today it takes  less than a third. We've already reduced our planned defense expenditures  by nearly a hundred billion dollars over the past 4 years and reduced  projected spending again this year.  
1985-40	1985	You know, we only have a military-industrial complex until a time of  danger, and then it becomes the arsenal of democracy. Spending for defense  is investing in things that are priceless--peace and freedom.  
1985-41	1985	Third, we must reduce or eliminate costly government subsidies. For  example, deregulation of the airline industry has led to cheaper airfares,  but on Amtrak taxpayers pay about $35 per passenger every time an Amtrak  train leaves the station, It's time we ended this huge Federal subsidy.  
1985-42	1985	Our farm program costs have quadrupled in recent years. Yet I know from  visiting farmers, many in great financial distress, that we need an orderly  transition to a market-oriented farm economy. We can help farmers best not  by expanding Federal payments but by making fundamental reforms, keeping  interest rates heading down, and knocking down foreign trade barriers to  American farm exports.  
1985-43	1985	We're moving ahead with Grace commission reforms to eliminate waste and  improve government's management practices. In the long run, we must protect  the taxpayers from government. And I ask again that you pass, as 32 States  have now called for, an amendment mandating the Federal Government spend no  more than it takes in. And I ask for the authority, used responsibly by 43  Governors, to veto individual items in appropriation bills. Senator  Mattingly has introduced a bill permitting a 2-year trial run of the  line-item veto. I hope you'll pass and send that legislation to my desk.  
1985-44	1985	Nearly 50 years of government living beyond its means has brought us to a  time of reckoning. Ours is but a moment in history. But one moment of  courage, idealism, and bipartisan unity can change American history  forever.  
1985-45	1985	Sound monetary policy is key to long-running economic strength and  stability. We will continue to cooperate with the Federal Reserve Board,  seeking a steady policy that ensures price stability without keeping  interest rates artificially high or needlessly holding down growth.  
1985-46	1985	Reducing unneeded red tape and regulations, and deregulating the energy,  transportation, and financial industries have unleashed new competition,  giving consumers more choices, better services, and lower prices. In just  one set of grant programs we have reduced 905 pages of regulations to 31.  We seek to fully deregulate natural gas to bring on new supplies and bring  us closer to energy independence. Consistent with safety standards, we will  continue removing restraints on the bus and railroad industries, we will  soon end up legislation--or send up legislation, I should say--to return  Conrail to the private sector where it belongs, and we will support further  deregulation of the trucking industry.  
1985-47	1985	Every dollar the Federal Government does not take from us, every decision  it does not make for us will make our economy stronger, our lives more  abundant, our future more free.  
1985-48	1985	Our second American revolution will push on to new possibilities not only  on Earth but in the next frontier of space. Despite budget restraints, we  will seek record funding for research and development.  
1985-49	1985	We've seen the success of the space shuttle. Now we're going to develop a  permanently manned space station and new opportunities for free enterprise,  because in the next decade Americans and our friends around the world will  be living and working together in space.  
1985-50	1985	In the zero gravity of space, we could manufacture in 30 days lifesaving  medicines it would take 30 years to make on Earth. We can make crystals of  exceptional purity to produce super computers, creating jobs, technologies,  and medical breakthroughs beyond anything we ever dreamed possible.  
1985-51	1985	As we do all this, we'll continue to protect our natural resources. We will  seek reauthorization and expanded funding for the Superfund program to  continue cleaning up hazardous waste sites which threaten human health and  the environment.  
1985-52	1985	Now, there's another great heritage to speak of this evening. Of all the  changes that have swept America the past 4 years, none brings greater  promise than our rediscovery of the values of faith, freedom, family, work,  and neighborhood.  
1985-53	1985	We see signs of renewal in increased attendance in places of worship;  renewed optimism and faith in our future; love of country rediscovered by  our young, who are leading the way. We've rediscovered that work is good in  and of itself, that it ennobles us to create and contribute no matter how  seemingly humble our jobs. We've seen a powerful new current from an old  and honorable tradition--American generosity.  
1985-54	1985	From thousands answering Peace Corps appeals to help boost food production  in Africa, to millions volunteering time, corporations adopting schools,  and communities pulling together to help the neediest among us at home, we  have refound our values. Private sector initiatives are crucial to our  future.  
1985-55	1985	I thank the Congress for passing equal access legislation giving religious  groups the same right to use classrooms after school that other groups  enjoy. But no citizen need tremble, nor the world shudder, if a child  stands in a classroom and breathes a prayer. We ask you again, give  children back a right they had for a century and a half or more in this  country.  
1985-56	1985	The question of abortion grips our nation. Abortion is either the taking of  a human life or it isn't. And if it is--and medical technology is  increasingly showing it is--it must be stopped. It is a terrible irony that  while some turn to abortion, so many others who cannot become parents cry  out for children to adopt. We have room for these children. We can fill the  cradles of those who want a child to love. And tonight I ask you in the  Congress to move this year on legislation to protect the unborn.  
1985-57	1985	In the area of education, we're returning to excellence, and again, the  heroes are our people, not government. We're stressing basics of  discipline, rigorous testing, and homework, while helping children become  computer-smart as well. For 20 years scholastic aptitude test scores of our  high school students went down, but now they have gone up 2 of the last 3  years. We must go forward in our commitment to the new basics, giving  parents greater authority and making sure good teachers are rewarded for  hard work and achievement through merit pay.  
1985-58	1985	Of all the changes in the past 20 years, none has more threatened our sense  of national well-being than the explosion of violent crime. One does not  have to be attacked to be a victim. The woman who must run to her car after  shopping at night is a victim. The couple draping their door with locks and  chains are victims; as is the tired, decent cleaning woman who can't ride a  subway home without being afraid.  
1985-59	1985	We do not seek to violate the rights of defendants. But shouldn't we feel  more compassion for the victims of crime than for those who commit crime?  For the first time in 20 years, the crime index has fallen 2 years in a  row. We've convicted over 7,400 drug offenders and put them, as well as  leaders of organized crime, behind bars in record numbers.  
1985-60	1985	But we must do more. I urge the House to follow the Senate and enact  proposals permitting use of all reliable evidence that police officers  acquire in good faith. These proposals would also reform the habeas corpus  laws and allow, in keeping with the will of the overwhelming majority of  Americans, the use of the death penalty where necessary.  
1985-61	1985	There can be no economic revival in ghettos when the most violent among us  are allowed to roam free. It's time we restored domestic tranquility. And  we mean to do just that.  
1985-62	1985	Just as we're positioned as never before to secure justice in our economy,  we're poised as never before to create a safer, freer, more peaceful world.  Our alliances are stronger than ever. Our economy is stronger than ever. We  have resumed our historic role as a leader of the free world. And all of  these together are a great force for peace.  
1985-63	1985	Since 1981 we've been committed to seeking fair and verifiable arms  agreements that would lower the risk of war and reduce the size of nuclear  arsenals. Now our determination to maintain a strong defense has influenced  the Soviet Union to return to the bargaining table. Our negotiators must be  able to go to that table with the united support of the American people.  All of us have no greater dream than to see the day when nuclear weapons  are banned from this Earth forever.  
1985-64	1985	Each Member of the Congress has a role to play in modernizing our defenses,  thus supporting our chances for a meaningful arms agreement. Your vote this  spring on the Peacekeeper missile will be a critical test of our resolve to  maintain the strength we need and move toward mutual and verifiable arms  reductions.  
1985-65	1985	For the past 20 years we've believed that no war will be launched as long  as each side knows it can retaliate with a deadly counterstrike. Well, I  believe there's a better way of eliminating the threat of nuclear war. It  is a Strategic Defense Initiative aimed ultimately at finding a nonnuclear  defense against ballistic missiles. It's the most hopeful possibility of  the nuclear age. But it's not very well understood.  
1985-66	1985	Some say it will bring war to the heavens, but its purpose is to deter war  in the heavens and on Earth. Now, some say the research would be expensive.  Perhaps, but it could save millions of lives, indeed humanity itself. And  some say if we build such a system, the Soviets will build a defense system  of their own. Well, they already have strategic defenses that surpass ours;  a civil defense system, where we have almost none; and a research program  covering roughly the same areas of technology that we're now exploring. And  finally some say the research will take a long time. Well, the answer to  that is: Let's get started.  
1985-67	1985	Harry Truman once said that, ultimately, our security and the world's hopes  for peace and human progress "lie not in measures of defense or in the  control of weapons, but in the growth and expansion of freedom and  self-government."  
1985-68	1985	And tonight, we declare anew to our fellow citizens of the world: Freedom  is not the sole prerogative of a chosen few; it is the universal right of  all God's children. Look to where peace and prosperity flourish today. It  is in homes that freedom built. Victories against poverty are greatest and  peace most secure where people live by laws that ensure free press, free  speech, and freedom to worship, vote, and create wealth.  
1985-69	1985	Our mission is to nourish and defend freedom and democracy, and to  communicate these ideals everywhere we can. America's economic success is  freedom's success; it can be repeated a hundred times in a hundred  different nations. Many countries in east Asia and the Pacific have few  resources other than the enterprise of their own people. But through low  tax rates and free markets they've soared ahead of centralized economies.  And now China is opening up its economy to meet its needs.  
1985-70	1985	We need a stronger and simpler approach to the process of making and  implementing trade policy, and we'll be studying potential changes in that  process in the next few weeks. We've seen the benefits of free trade and  lived through the disasters of protectionism. Tonight I ask all our trading  partners, developed and developing alike, to join us in a new round of  trade negotiations to expand trade and competition and strengthen the  global economy--and to begin it in this next year.  
1985-71	1985	There are more than 3 billion human beings living in Third World countries  with an average per capita income of $650 a year. Many are victims of  dictatorships that impoverished them with taxation and corruption. Let us  ask our allies to join us in a practical program of trade and assistance  that fosters economic development through personal incentives to help these  people climb from poverty on their own.  
1985-72	1985	We cannot play innocents abroad in a world that's not innocent; nor can we  be passive when freedom is under siege. Without resources, diplomacy cannot  succeed. Our security assistance programs help friendly governments defend  themselves and give them confidence to work for peace. And I hope that you  in the Congress will understand that, dollar for dollar, security  assistance contributes as much to global security as our own defense  budget.  
1985-73	1985	We must stand by all our democratic allies. And we must not break faith  with those who are risking their lives--on every continent, from  Afghanistan to Nicaragua--to defy Soviet-supported aggression and secure  rights which have been ours from birth.  
1985-74	1985	The Sandinista dictatorship of Nicaragua, with full Cuban-Soviet bloc  support, not only persecutes its people, the church, and denies a free  press, but arms and provides bases for Communist terrorists attacking  neighboring states. Support for freedom fighters is self-defense and  totally consistent with the OAS and U.N. Charters. It is essential that the  Congress continue all facets of our assistance to Central America. I want  to work with you to support the democratic forces whose struggle is tied to  our own security.  
1985-75	1985	And tonight, I've spoken of great plans and great dreams. They're dreams we  can make come true. Two hundred years of American history should have  taught us that nothing is impossible.  
1985-76	1985	Ten years ago a young girl left Vietnam with her family, part of the exodus  that followed the fall of Saigon. They came to the United States with no  possessions and not knowing a word of English. Ten years ago--the young  girl studied hard, learned English, and finished high school in the top of  her class. And this May, May 22d to be exact, is a big date on her  calendar. Just 10 years from the time she left Vietnam, she will graduate  from the United States Military Academy at West Point. I thought you might  like to meet an American hero named Jean Nguyen.  
1985-77	1985	Now, there's someone else here tonight, born 79 years ago. She lives in the  inner city, where she cares for infants born of mothers who are heroin  addicts. The children, born in withdrawal, are sometimes even dropped on  her doorstep. She helps them with love. Go to her house some night, and  maybe you'll see her silhouette against the window as she walks the floor  talking softly, soothing a child in her arms--Mother Hale of Harlem, and  she, too, is an American hero.  
1985-78	1985	Jean, Mother Hale, your lives tell us that the oldest American saying is  new again: Anything is possible in America if we have the faith, the will,  and the heart. History is asking us once again to be a force for good in  the world. Let us begin in unity, with justice, and love.  
1985-79	1985	Thank you, and God bless you.  
1985-80	1985	NOTE: The President spoke at 9:05 p.m. in the House Chamber of the Capitol.  He was introduced by Thomas P. O'Neill, Jr., Speaker of the House of  Representatives. The address was broadcast live on nationwide radio  and television.  
1986-1	1986	Mr. Speaker, Mr. President, distinguished Members of the Congress, honored  guests, and fellow citizens:  
1986-2	1986	Thank you for allowing me to delay my address until this evening. We paused  together to mourn and honor the valor of our seven Challenger heroes. And I  hope that we are now ready to do what they would want us to do: Go forward,  America, and reach for the stars. We will never forget those brave seven,  but we shall go forward.  
1986-3	1986	Mr. Speaker, before I begin my prepared remarks, may I point out that  tonight marks the 10th and last State of the Union Message that you've  presided over. And on behalf of the American people, I want to salute you  for your service to Congress and country. Here's to you!  
1986-4	1986	I have come to review with you the progress of our nation, to speak of  unfinished work, and to set our sights on the future. I am pleased to  report the state of our Union is stronger than a year ago and growing  stronger each day. Tonight we look out on a rising America, firm of heart,  united in spirit, powerful in pride and patriotism. America is on the move!  But it wasn't long ago that we looked out on a different land: locked  factory gates, long gasoline lines, intolerable prices, and interest rates  turning the greatest country on Earth into a land of broken dreams.  Government growing beyond our consent had become a lumbering giant,  slamming shut the gates of opportunity, threatening to crush the very roots  of our freedom. What brought America back? The American people brought us  back with quiet courage and common sense, with undying faith that in this  nation under God the future will be ours; for the future belongs to the  free.  
1986-5	1986	Tonight the American people deserve our thanks for 37 straight months of  economic growth, for sunrise firms and modernized industries creating 9  million new jobs in 3 years, interest rates cut in half, inflation falling  over from 12 percent in 1980 to under 4 today, and a mighty river of good  works--a record $74 billion in voluntary giving just last year alone. And  despite the pressures of our modern world, family and community remain the  moral core of our society, guardians of our values and hopes for the  future. Family and community are the costars of this great American  comeback. They are why we say tonight: Private values must be at the heart  of public policies.  
1986-6	1986	What is true for families in America is true for America in the family of  free nations. History is no captive of some inevitable force. History is  made by men and women of vision and courage. Tonight freedom is on the  march. The United States is the economic miracle, the model to which the  world once again turns. We stand for an idea whose time is now: Only by  lifting the weights from the shoulders of all can people truly prosper and  can peace among all nations be secure. Teddy Roosevelt said that a nation  that does great work lives forever. We have done well, but we cannot stop  at the foothills when Everest beckons. It's time for America to be all that  we can be.  
1986-7	1986	We speak tonight of an agenda for the future, an agenda for a safer, more  secure world. And we speak about the necessity for actions to steel us for  the challenges of growth, trade, and security in the next decade and the  year 2000. And we will do it--not by breaking faith with bedrock principles  but by breaking free from failed policies. Let us begin where storm clouds  loom darkest--right here in Washington, DC. This week I will send you our  detailed proposals; tonight let us speak of our responsibility to redefine  government's role: not to control, not to demand or command, not to contain  us, but to help in times of need and, above all, to create a ladder of  opportunity to full employment so that all Americans can climb toward  economic power and justice on their own.  
1986-8	1986	But we cannot win the race to the future shackled to a system that can't  even pass a Federal budget. We cannot win that race held back by  horse-and-buggy programs that waste tax dollars and squander human  potential. We cannot win that race if we're swamped in a sea of red ink.  Now, Mr. Speaker, you know, I know, and the American people know the  Federal budget system is broken. It doesn't work. Before we leave this  city, let's you and I work together to fix it, and then we can finally give  the American people a balanced budget.  
1986-9	1986	Members of Congress, passage of Gramm-Rudman-Hollings gives us an historic  opportunity to achieve what has eluded our national leadership for decades:  forcing the Federal Government to live within its means. Your schedule now  requires that the budget resolution be passed by April 15th, the very day  America's families have to foot the bill for the budgets that you produce.  How often we read of a husband and wife both working, struggling from  paycheck to paycheck to raise a family, meet a mortgage, pay their taxes  and bills. And yet some in Congress say taxes must be raised. Well, I'm  sorry; they're asking the wrong people to tighten their belts. It's time we  reduce the Federal budget and left the family budget alone. We do not face  large deficits because American families are undertaxed; we face those  deficits because the Federal Government overspends.  
1986-10	1986	The detailed budget that we will submit will meet the Gramm-Rudman-Hollings  target for deficit reductions, meet our commitment to ensure a strong  national defense, meet our commitment to protect Social Security and the  truly less fortunate, and, yes, meet our commitment to not raise taxes. How  should we accomplish this? Well, not by taking from those in need. As  families take care of their own, government must provide shelter and  nourishment for those who cannot provide for themselves. But we must revise  or replace programs enacted in the name of compassion that degrade the  moral worth of work, encourage family breakups, and drive entire  communities into a bleak and heartless dependency. Gramm-Rudman-Hollings  can mark a dramatic improvement. But experience shows that simply setting  deficit targets does not assure they'll be met. We must proceed with Grace  commission reforms against waste.  
1986-11	1986	And tonight I ask you to give me what 43 Governors have: Give me a  line-item veto this year. Give me the authority to veto waste, and I'll  take the responsibility, I'll make the cuts, I'll take the heat. This  authority would not give me any monopoly power, but simply prevent spending  measures from sneaking through that could not pass on their own merit. And  you can sustain or override my veto; that's the way the system should work.  Once we've made the hard choices, we should lock in our gains with a  balanced budget amendment to the Constitution.  
1986-12	1986	I mentioned that we will meet our commitment to national defense. We must  meet it. Defense is not just another budget expense. Keeping America  strong, free, and at peace is solely the responsibility of the Federal  Government; it is government's prime responsibility. We have devoted 5  years trying to narrow a dangerous gap born of illusion and neglect, and  we've made important gains. Yet the threat from Soviet forces, conventional  and strategic, from the Soviet drive for domination, from the increase in  espionage and state terror remains great. This is reality. Closing our eyes  will not make reality disappear. We pledged together to hold real growth in  defense spending to the bare minimum. My budget honors that pledge, and I'm  now asking you, the Congress, to keep its end of the bargain. The Soviets  must know that if America reduces her defenses, it will be because of a  reduced threat, not a reduced resolve.  
1986-13	1986	Keeping America strong is as vital to the national security as controlling  Federal spending is to our economic security. But, as I have said before,  the most powerful force we can enlist against the Federal deficit is an  ever-expanding American economy, unfettered and free. The magic of  opportunity--unreserved, unfailing, unrestrained--isn't this the calling  that unites us? I believe our tax rate cuts for the people have done more  to spur a spirit of risk-taking and help America's economy break free than  any program since John Kennedy's tax cut almost a quarter century ago.  
1986-14	1986	Now history calls us to press on, to complete efforts for an historic tax  reform providing new opportunity for all and ensuring that all pay their  fair share, but no more. We've come this far. Will you join me now, and  we'll walk this last mile together? You know my views on this. We cannot  and we will not accept tax reform that is a tax increase in disguise. True  reform must be an engine of productivity and growth, and that means a top  personal rate no higher than 35 percent. True reform must be truly fair,  and that means raising personal exemptions to $2,000. True reform means a  tax system that at long last is profamily, projobs, profuture, and  pro-America.  
1986-15	1986	As we knock down the barriers to growth, we must redouble our efforts for  freer and fairer trade. We have already taken actions to counter unfair  trading practices and to pry open closed foreign markets. We will continue  to do so. We will also oppose legislation touted as providing protection  that in reality pits one American worker against another, one industry  against another, one community against another, and that raises prices for  us all. If the United States can trade with other nations on a level  playing field, we can outproduce, outcompete, and outsell anybody, anywhere  in the world.  
1986-16	1986	The constant expansion of our economy and exports requires a sound and  stable dollar at home and reliable exchange rates around the world. We must  never again permit wild currency swings to cripple our farmers and other  exporters. Farmers, in particular, have suffered from past unwise  government policies. They must not be abandoned with problems they did not  create and cannot control. We've begun coordinating economic and monetary  policy among our major trading partners. But there's more to do, and  tonight I am directing Treasury Secretary Jim Baker to determine if the  nations of the world should convene to discuss the role and relationship of  our currencies.  
1986-17	1986	Confident in our future and secure in our values, Americans are striving  forward to embrace the future. We see it not only in our recovery but in 3  straight years of falling crime rates, as families and communities band  together to fight pornography, drugs, and lawlessness and to give back to  their children the safe and, yes, innocent childhood they deserve. We see  it in the renaissance in education, the rising SAT scores for 3 years--last  year's increase, the greatest since 1963. It wasn't government and  Washington lobbies that turned education around; it was the American people  who, in reaching for excellence, knew to reach back to basics. We must  continue the advance by supporting discipline in our schools, vouchers that  give parents freedom of choice; and we must give back to our children their  lost right to acknowledge God in their classrooms.  
1986-18	1986	We are a nation of idealists, yet today there is a wound in our national  conscience. America will never be whole as long as the right to life  granted by our Creator is denied to the unborn. For the rest of my time, I  shall do what I can to see that this wound is one day healed.  
1986-19	1986	As we work to make the American dream real for all, we must also look to  the condition of America's families. Struggling parents today worry how  they will provide their children the advantages that their parents gave  them. In the welfare culture, the breakdown of the family, the most basic  support system, has reached crisis proportions--in female and child  poverty, child abandonment, horrible crimes, and deteriorating schools.  After hundreds of billions of dollars in poverty programs, the plight of  the poor grows more painful. But the waste in dollars and cents pales  before the most tragic loss: the sinful waste of human spirit and  potential. We can ignore this terrible truth no longer. As Franklin  Roosevelt warned 51 years ago, standing before this Chamber, he said,  "Welfare is a narcotic, a subtle destroyer of the human spirit." And we  must now escape the spider's web of dependency.  
1986-20	1986	Tonight I am charging the White House Domestic Council to present me by  December 1, 1986, an evaluation of programs and a strategy for immediate  action to meet the financial, educational, social, and safety concerns of  poor families. I'm talking about real and lasting emancipation, because the  success of welfare should be judged by how many of its recipients become  independent of welfare. Further, after seeing how devastating illness can  destroy the financial security of the family, I am directing the Secretary  of Health and Human Services, Dr. Otis Bowen, to report to me by year end  with recommendations on how the private sector and government can work  together to address the problems of affordable insurance for those whose  life savings would otherwise be threatened when catastrophic illness  strikes.  
1986-21	1986	And tonight I want to speak directly to America's younger generation,  because you hold the destiny of our nation in your hands. With all the  temptations young people face, it sometimes seems the allure of the  permissive society requires superhuman feats of self-control. But the call  of the future is too strong, the challenge too great to get lost in the  blind alleyways of dissolution, drugs, and despair. Never has there been a  more exciting time to be alive, a time of rousing wonder and heroic  achievement. As they said in the film "Back to the Future," "Where we're  going, we don't need roads."  
1986-22	1986	Well, today physicists peering into the infinitely small realms of  subatomic particles find reaffirmations of religious faith. Astronomers  build a space telescope that can see to the edge of the universe and  possibly back to the moment of creation. So, yes, this nation remains fully  committed to America's space program. We're going forward with our shuttle  flights. We're going forward to build our space station. And we are going  forward with research on a new Orient Express that could, by the end of the  next decade, take off from Dulles Airport, accelerate up to 25 times the  speed of sound, attaining low Earth orbit or flying to Tokyo within 2  hours. And the same technology transforming our lives can solve the  greatest problem of the 20th century. A security shield can one day render  nuclear weapons obsolete and free mankind from the prison of nuclear  terror. America met one historic challenge and went to the Moon. Now  America must meet another: to make our strategic defense real for all the  citizens of planet Earth.  
1986-23	1986	Let us speak of our deepest longing for the future: to leave our children a  land that is free and just and a world at peace. It is my hope that our  fireside summit in Geneva and Mr. Gorbachev's upcoming visit to America can  lead to a more stable relationship. Surely no people on Earth hate war or  love peace more than we Americans. But we cannot stroll into the future  with childlike faith. Our differences with a system that openly proclaims  and practices an alleged right to command people's lives and to export its  ideology by force are deep and abiding. Logic and history compel us to  accept that our relationship be guided by realism--rock-hard, cleareyed,  steady, and sure. Our negotiators in Geneva have proposed a radical cut in  offensive forces by each side with no cheating. They have made clear that  Soviet compliance with the letter and spirit of agreements is essential. If  the Soviet Government wants an agreement that truly reduces nuclear arms,  there will be such an agreement.  
1986-24	1986	But arms control is no substitute for peace. We know that peace follows in  freedom's path and conflicts erupt when the will of the people is denied.  So, we must prepare for peace not only by reducing weapons but by  bolstering prosperity, liberty, and democracy however and wherever we can.  We advance the promise of opportunity every time we speak out on behalf of  lower tax rates, freer markets, sound currencies around the world. We  strengthen the family of freedom every time we work with allies and come to  the aid of friends under siege. And we can enlarge the family of free  nations if we will defend the unalienable rights of all God's children to  follow their dreams.  
1986-25	1986	To those imprisoned in regimes held captive, to those beaten for daring to  fight for freedom and democracy--for their right to worship, to speak, to  live, and to prosper in the family of free nations--we say to you tonight:  You are not alone, freedom fighters. America will support with moral and  material assistance your right not just to fight and die for freedom but to  fight and win freedom--to win freedom in Afghanistan, in Angola, in  Cambodia, and in Nicaragua. This is a great moral challenge for the entire  free world.  
1986-26	1986	Surely no issue is more important for peace in our own hemisphere, for the  security of our frontiers, for the protection of our vital interests, than  to achieve democracy in Nicaragua and to protect Nicaragua's democratic  neighbors. This year I will be asking Congress for the means to do what  must be done for that great and good cause. As (former Senator Henry  M.)Scoop Jackson, the inspiration for our Bipartisan Commission on Central  America, once said, "In matters of national security, the best politics is  no politics."  
1986-27	1986	What we accomplish this year, in each challenge we face, will set our  course for the balance of the decade, indeed, for the remainder of the  century. After all we've done so far, let no one say that this nation  cannot reach the destiny of our dreams. America believes, America is ready,  America can win the race to the future--and we shall. The American dream is  a song of hope that rings through night winter air; vivid, tender music  that warms our hearts when the least among us aspire to the greatest  things: to venture a daring enterprise; to unearth new beauty in music,  literature, and art; to discover a new universe inside a tiny silicon chip  or a single human cell.  
1986-28	1986	We see the dream coming true in the spirit of discovery of Richard Cavoli.  All his life he's been enthralled by the mysteries of medicine. And,  Richard, we know that the experiment that you began in high school was  launched and lost last week, yet your dream lives. And as long as it's  real, work of noble note will yet be done, work that could reduce the  harmful effects of x rays on patients and enable astronomers to view the  golden gateways of the farthest stars.  
1986-29	1986	We see the dream glow in the towering talent of a 12-year-old, Tyrone Ford.  A child prodigy of gospel music, he has surmounted personal adversity to  become an accomplished pianist and singer. He also directs the choirs of  three churches and has performed at the Kennedy Center. With God as your  composer, Tyrone, your music will be the music of angels.  
1986-30	1986	We see the dream being saved by the courage of the 13-year-old Shelby  Butler, honor student and member of her school's safety patrol. Seeing  another girl freeze in terror before an out-of-control school bus, she  risked her life and pulled her to safety. With bravery like yours, Shelby,  America need never fear for our future.  
1986-31	1986	And we see the dream born again in the joyful compassion of a 13 year old,  Trevor Ferrell. Two years ago, age 11, watching men and women bedding down  in abandoned doorways--on television he was watching--Trevor left his  suburban Philadelphia home to bring blankets and food to the helpless and  homeless. And now 250 people help him fulfill his nightly vigil. Trevor,  yours is the living spirit of brotherly love.  
1986-32	1986	Would you four stand up for a moment? Thank you, thank you. You are heroes  of our hearts. We look at you and know it's true: In this land of dreams  fulfilled, where greater dreams may be imagined, nothing is impossible, no  victory is beyond our reach, no glory will ever be too great.  
1986-33	1986	So, now it's up to us, all of us, to prepare America for that day when our  work will pale before the greatness of America's champions in the 21st  century. The world's hopes rest with America's future; America's hopes rest  with us. So, let us go forward to create our world of tomorrow in faith, in  unity, and in love.  
1986-34	1986	God bless you, and God bless America.  
1986-35	1986	NOTE: The President spoke at 8:04 p.m. in the House Chamber of the Capitol.  He was introduced by Thomas P. O'Neill, Jr., Speaker of the House of  Representatives. The address was broadcast live on nationwide radio  and television.  
1987-1	1987	Mr. Speaker, Mr. President, distinguished Members of Congress, honored  guests, and fellow citizens:  
1987-2	1987	May I congratulate all of you who are Members of this historic 100th  Congress of the United States of America. In this 200th anniversary year of  our Constitution, you and I stand on the shoulders of giants--men whose  words and deeds put wind in the sails of freedom. However, we must always  remember that our Constitution is to be celebrated not for being old, but  for being young--young with the same energy, spirit, and promise that  filled each eventful day in Philadelphia's statehouse. We will be guided  tonight by their acts, and we will be guided forever by their words.  
1987-3	1987	Now, forgive me, but I can't resist sharing a story from those historic  days. Philadelphia was bursting with civic pride in the spring of 1787, and  its newspapers began embellishing the arrival of the Convention delegates  with elaborate social classifications. Governors of States were called  Excellency. Justices and Chancellors had reserved for them honorable with a  capital "H." For Congressmen, it was honorable with a small "h." And all  others were referred to as "the following respectable characters." Well,  for this 100th Congress, I invoke special executive powers to declare that  each of you must never be titled less than honorable with a capital "H."  Incidentally, I'm delighted you are celebrating the 100th birthday of the  Congress. It's always a pleasure to congratulate someone with more  birthdays than I've had.  
1987-4	1987	Now, there's a new face at this place of honor tonight. And please join me  in warm congratulations to the Speaker of the House, Jim Wright. Mr.  Speaker, you might recall a similar situation in your very first session of  Congress 32 years ago. Then, as now, the speakership had changed hands and  another great son of Texas, Sam Rayburn--"Mr. Sam"--sat in your chair. I  cannot find better words than those used by President Eisenhower that  evening. He said, "We shall have much to do together; I am sure that we  will get it done and that we shall do it in harmony and good will." Tonight  I renew that pledge. To you, Mr. Speaker, and to Senate Majority Leader  Robert Byrd, who brings 34 years of distinguished service to the Congress,  may I say: Though there are changes in the Congress, America's interests  remain the same. And I am confident that, along with Republican leaders Bob  Michel and Bob Dole, this Congress can make history.  
1987-5	1987	Six years ago I was here to ask the Congress to join me in America's new  beginning. Well, the results are something of which we can all be proud.  Our inflation rate is now the lowest in a quarter of a century. The prime  interest rate has fallen from the 21 1/2 percent the month before we took  office to 7 1/2 percent today. And those rates have triggered the most  housing starts in 8 years. The unemployment rate--still too high--is the  lowest in nearly 7 years, and our people have created nearly 13 million new  jobs. Over 61 percent of everyone over the age of 16, male and female, is  employed--the highest percentage on record. Let's roll up our sleeves and  go to work and put America's economic engine at full throttle. We can also  be heartened by our progress across the world. Most important, America is  at peace tonight, and freedom is on the march. And we've done much these  past years to restore our defenses, our alliances, and our leadership in  the world. Our sons and daughters in the services once again wear their  uniforms with pride.  
1987-6	1987	But though we've made much progress, I have one major regret: I took a risk  with regard to our action in Iran. It did not work, and for that I assume  full responsibility. The goals were worthy. I do not believe it was wrong  to try to establish contacts with a country of strategic importance or to  try to save lives. And certainly it was not wrong to try to secure freedom  for our citizens held in barbaric captivity. But we did not achieve what we  wished, and serious mistakes were made in trying to do so. We will get to  the bottom of this, and I will take whatever action is called for. But in  debating the past, we must not deny ourselves the successes of the future.  Let it never be said of this generation of Americans that we became so  obsessed with failure that we refused to take risks that could further the  cause of peace and freedom in the world. Much is at stake here, and the  Nation and the world are watching to see if we go forward together in the  national interest or if we let partisanship weaken us. And let there be no  mistake about American policy: We will not sit idly by if our interests or  our friends in the Middle East are threatened, nor will we yield to  terrorist blackmail.  
1987-7	1987	And now, ladies and gentlemen of the Congress, why don't we get to work? I  am pleased to report that because of our efforts to rebuild the strength of  America, the world is a safer place. Earlier this month I submitted a  budget to defend America and maintain our momentum to make up for neglect  in the last decade. Well, I ask you to vote out a defense and foreign  affairs budget that says yes to protecting our country. While the world is  safer, it is not safe.  
1987-8	1987	Since 1970 the Soviets have invested $500 billion more on their military  forces than we have. Even today, though nearly 1 in 3 Soviet families is  without running hot water and the average family spends 2 hours a day  shopping for the basic necessities of life, their government still found  the resources to transfer $75 billion in weapons to client states in the  past 5 years--clients like Syria, Vietnam, Cuba, Libya, Angola, Ethiopia,  Afghanistan, and Nicaragua. With 120,000 Soviet combat and military  personnel and 15,000 military advisers in Asia, Africa, and Latin America,  can anyone still doubt their single-minded determination to expand their  power? Despite this, the Congress cut my request for critical U.S. security  assistance to free nations by 21 percent this year, and cut defense  requests by $85 billion in the last 3 years.  
1987-9	1987	These assistance programs serve our national interests as well as mutual  interests. And when the programs are devastated, American interests are  harmed. My friends, it's my duty as President to say to you again tonight  that there is no surer way to lose freedom than to lose our resolve. Today  the brave people of Afghanistan are showing that resolve. The Soviet Union  says it wants a peaceful settlement in Afghanistan, yet it continues a  brutal war and props up a regime whose days are clearly numbered. We are  ready to support a political solution that guarantees the rapid withdrawal  of all Soviet troops and genuine self-determination for the Afghan people.  
1987-10	1987	In Central America, too, the cause of freedom is being tested. And our  resolve is being tested there as well. Here, especially, the world is  watching to see how this nation responds. Today over 90 percent of the  people of Latin America live in democracy. Democracy is on the march in  Central and South America. Communist Nicaragua is the odd man  out--suppressing the church, the press, and democratic dissent and  promoting subversion in the region. We support diplomatic efforts, but  these efforts can never succeed if the Sandinistas win their war against  the Nicaraguan people.  
1987-11	1987	Our commitment to a Western Hemisphere safe from aggression did not occur  by spontaneous generation on the day that we took office. It began with the  Monroe Doctrine in 1823 and continues our historic bipartisan American  policy. Franklin Roosevelt said we "are determined to do everything  possible to maintain peace on this hemisphere." President Truman was very  blunt: "International communism seeks to crush and undermine and destroy  the independence of the Americas. We cannot let that happen here." And John  F. Kennedy made clear that "Communist domination in this hemisphere can  never be negotiated." Some in this Congress may choose to depart from this  historic commitment, but I will not.  
1987-12	1987	This year we celebrate the second century of our Constitution. The  Sandinistas just signed theirs 2 weeks ago, and then suspended it. We won't  know how my words tonight will be reported there for one simple reason:  There is no free press in Nicaragua. Nicaraguan freedom fighters have never  asked us to wage their battle, but I will fight any effort to shut off  their lifeblood and consign them to death, defeat, or a life without  freedom. There must be no Soviet beachhead in Central America.  
1987-13	1987	You know, we Americans have always preferred dialog to conflict, and so, we  always remain open to more constructive relations with the Soviet Union.  But more responsible Soviet conduct around the world is a key element of  the U.S.-Soviet agenda. Progress is also required on the other items of our  agenda as well--real respect for human rights and more open contacts  between our societies and, of course, arms reduction.  
1987-14	1987	In Iceland, last October, we had one moment of opportunity that the Soviets  dashed because they sought to cripple our Strategic Defense Initiative,  SDI. I wouldn't let them do it then; I won't let them do it now or in the  future. This is the most positive and promising defense program we have  undertaken. It's the path, for both sides, to a safer future--a system that  defends human life instead of threatening it. SDI will go forward. The  United States has made serious, fair, and far-reaching proposals to the  Soviet Union, and this is a moment of rare opportunity for arms reduction.  But I will need, and American negotiators in Geneva will need, Congress'  support. Enacting the Soviet negotiating position into American law would  not be the way to win a good agreement. So, I must tell you in this  Congress I will veto any effort that undercuts our national security and  our negotiating leverage.  
1987-15	1987	Now, today, we also find ourselves engaged in expanding peaceful commerce  across the world. We will work to expand our opportunities in international  markets through the Uruguay round of trade negotiations and to complete an  historic free trade arrangement between the world's two largest trading  partners, Canada and the United States. Our basic trade policy remains the  same: We remain opposed as ever to protectionism, because America's growth  and future depend on trade. But we would insist on trade that is fair and  free. We are always willing to be trade partners but never trade patsies.  
1987-16	1987	Now, from foreign borders let us return to our own, because America in the  world is only as strong as America at home. This 100th Congress has high  responsibilities. I begin with a gentle reminder that many of these are  simply the incomplete obligations of the past. The American people deserve  to be impatient, because we do not yet have the public house in order.  We've had great success in restoring our economic integrity, and we've  rescued our nation from the worst economic mess since the Depression. But  there's more to do. For starters, the Federal deficit is outrageous. For  years I've asked that we stop pushing onto our children the excesses of our  government. And what the Congress finally needs to do is pass a  constitutional amendment that mandates a balanced budget and forces  government to live within its means. States, cities, and the families of  America balance their budgets. Why can't we?  
1987-17	1987	Next, the budget process is a sorry spectacle. The missing of deadlines and  the nightmare of monstrous continuing resolutions packing hundreds of  billions of dollars of spending into one bill must be stopped. We ask the  Congress once again: Give us the same tool that 43 Governors have--a  lineitem veto so we can carve out the boondoggles and pork, those items  that would never survive on their own. I will send the Congress broad  recommendations on the budget, but first I'd like to see yours. Let's go to  work and get this done together.  
1987-18	1987	But now let's talk about this year's budget. Even though I have submitted  it within the Gramm-Rudman-Hollings deficit reduction target, I have seen  suggestions that we might postpone that timetable. Well, I think the  American people are tired of hearing the same old excuses. Together we made  a commitment to balance the budget. Now let's keep it. As for those  suggestions that the answer is higher taxes, the American people have  repeatedly rejected that shop-worn advice. They know that we don't have  deficits because people are taxed too little. We have deficits because big  government spends too much.  
1987-19	1987	Now, next month I'll place two additional reforms before the Congress.  We've created a welfare monster that is a shocking indictment of our sense  of priorities. Our national welfare system consists of some 59 major  programs and over 6,000 pages of Federal laws and regulations on which more  than $132 billion was spent in 1985. I will propose a new national welfare  strategy, a program of welfare reform through State-sponsored,  community-based demonstration projects. This is the time to reform this  outmoded social dinosaur and finally break the poverty trap. Now, we will  never abandon those who, through no fault of their own, must have our help.  But let us work to see how many can be freed from the dependency of welfare  and made self-supporting, which the great majority of welfare recipients  want more than anything else. Next, let us remove a financial specter  facing our older Americans: the fear of an illness so expensive that it can  result in having to make an intolerable choice between bankruptcy and  death. I will submit legislation shortly to help free the elderly from the  fear of catastrophic illness.  
1987-20	1987	Now let's turn to the future. It's widely said that America is losing her  competitive edge. Well, that won't happen if we act now. How well prepared  are we to enter the 21st century? In my lifetime, America set the standard  for the world. It is now time to determine that we should enter the next  century having achieved a level of excellence unsurpassed in history. We  will achieve this, first, by guaranteeing that government does everything  possible to promote America's ability to compete. Second, we must act as  individuals in a quest for excellence that will not be measured by new  proposals or billions in new funding. Rather, it involves an expenditure of  American spirit and just plain American grit. The Congress will soon  receive my comprehensive proposals to enhance our competitiveness,  including new science and technology centers and strong new funding for  basic research. The bill will include legal and regulatory reforms and  weapons to fight unfair trade practices. Competitiveness also means giving  our farmers a shot at participating fairly and fully in a changing world  market.  
1987-21	1987	Preparing for the future must begin, as always, with our children. We need  to set for them new and more rigorous goals. We must demand more of  ourselves and our children by raising literacy levels dramatically by the  year 2000. Our children should master the basic concepts of math and  science, and let's insist that students not leave high school until they  have studied and understood the basic documents of our national heritage.  There's one more thing we can't let up on: Let's redouble our personal  efforts to provide for every child a safe and drug-free learning  environment. If our crusade against drugs succeeds with our children, we  will defeat that scourge all over the country.  
1987-22	1987	Finally, let's stop suppressing the spiritual core of our national being.  Our nation could not have been conceived without divine help. Why is it  that we can build a nation with our prayers, but we can't use a schoolroom  for voluntary prayer? The 100th Congress of the United States should be  remembered as the one that ended the expulsion of God from America's  classrooms.  
1987-23	1987	The quest for excellence into the 21st century begins in the schoolroom but  must go next to the workplace. More than 20 million new jobs will be  created before the new century unfolds, and by then, our economy should be  able to provide a job for everyone who wants to work. We must also enable  our workers to adapt to the rapidly changing nature of the workplace. And I  will propose substantial, new Federal commitments keyed to retraining and  job mobility.  
1987-24	1987	Over the next few weeks, I'll be sending the Congress a complete series of  these special messages--on budget reform, welfare reform, competitiveness,  including education, trade, worker training and assistance, agriculture,  and other subjects. The Congress can give us these tools, but to make these  tools work, it really comes down to just being our best. And that is the  core of American greatness. The responsibility of freedom presses us  towards higher knowledge and, I believe, moral and spiritual greatness.  Through lower taxes and smaller government, government has its ways of  freeing people's spirits. But only we, each of us, can let the spirit soar  against our own individual standards. Excellence is what makes freedom  ring. And isn't that what we do best?  
1987-25	1987	We're entering our third century now, but it's wrong to judge our nation by  its years. The calendar can't measure America because we were meant to be  an endless experiment in freedom--with no limit to our reaches, no  boundaries to what we can do, no end point to our hopes. The United States  Constitution is the impassioned and inspired vehicle by which we travel  through history. It grew out of the most fundamental inspiration of our  existence: that we are here to serve Him by living free--that living free  releases in us the noblest of impulses and the best of our abilities; that  we would use these gifts for good and generous purposes and would secure  them not just for ourselves and for our children but for all mankind.  
1987-26	1987	Over the years--I won't count if you don't--nothing has been so  heartwarming to me as speaking to America's young, and the little ones  especially, so fresh-faced and so eager to know. Well, from time to time  I've been with them--they will ask about our Constitution. And I hope you  Members of Congress will not deem this a breach of protocol if you'll  permit me to share these thoughts again with the young people who might be  listening or watching this evening. I've read the constitutions of a number  of countries, including the Soviet Union's. Now, some people are surprised  to hear that they have a constitution, and it even supposedly grants a  number of freedoms to its people. Many countries have written into their  constitution provisions for freedom of speech and freedom of assembly.  Well, if this is true, why is the Constitution of the United States so  exceptional?  
1987-27	1987	Well, the difference is so small that it almost escapes you, but it's so  great it tells you the whole story in just three words: We the people. In  those other constitutions, the Government tells the people of those  countries what they're allowed to do. In our Constitution, we the people  tell the Government what it can do, and it can do only those things listed  in that document and no others. Virtually every other revolution in history  has just exchanged one set of rulers for another set of rulers. Our  revolution is the first to say the people are the masters and government is  their servant. And you young people out there, don't ever forget that.  Someday you could be in this room, but wherever you are, America is  depending on you to reach your highest and be your best--because here in  America, we the people are in charge.  
1987-28	1987	Just three words: We the people--those are the kids on Christmas Day  looking out from a frozen sentry post on the 38th parallel in Korea or  aboard an aircraft carrier in the Mediterranean. A million miles from home,  but doing their duty.  
1987-29	1987	We the people--those are the warmhearted whose numbers we can't begin to  count, who'll begin the day with a little prayer for hostages they will  never know and MIA families they will never meet. Why? Because that's the  way we are, this unique breed we call Americans.  
1987-30	1987	We the people--they're farmers on tough times, but who never stop feeding a  hungry world. They're the volunteers at the hospital choking back their  tears for the hundredth time, caring for a baby struggling for life because  of a mother who used drugs. And you'll forgive me a special memory--it's a  million mothers like Nelle Reagan who never knew a stranger or turned a  hungry person away from her kitchen door.  
1987-31	1987	We the people--they refute last week's television commentary downgrading  our optimism and our idealism. They are the entrepreneurs, the builders,  the pioneers, and a lot of regular folks--the true heroes of our land who  make up the most uncommon nation of doers in history. You know they're  Americans because their spirit is as big as the universe and their hearts  are bigger than their spirits.  
1987-32	1987	We the people--starting the third century of a dream and standing up to  some cynic who's trying to tell us we're not going to get any better. Are  we at the end? Well, I can't tell it any better than the real thing--a  story recorded by James Madison from the final moments of the  Constitutional Convention, September 17th, 1787. As the last few members  signed the document, Benjamin Franklin--the oldest delegate at 81 years and  in frail health--looked over toward the chair where George Washington daily  presided. At the back of the chair was painted the picture of a Sun on the  horizon. And turning to those sitting next to him, Franklin observed that  artists found it difficult in their painting to distinguish between a  rising and a setting Sun.  
1987-33	1987	Well, I know if we were there, we could see those delegates sitting around  Franklin--leaning in to listen more closely to him. And then Dr. Franklin  began to share his deepest hopes and fears about the outcome of their  efforts, and this is what he said: "I have often looked at that picture  behind the President without being able to tell whether it was a rising or  setting Sun: But now at length I have the happiness to know that it is a  rising and not a setting Sun." Well, you can bet it's rising because, my  fellow citizens, America isn't finished. Her best days have just begun.  
1987-34	1987	Thank you, God bless you, and God bless America.  
1987-35	1987	NOTE: The President spoke at 9:03 p.m. in the House Chamber of the Capitol.  He was introduced by Jim Wright, Speaker of the House of Representatives.  The address was broadcast live on nationwide radio and television.  
1988-1	1988	Mr. Speaker, Mr. President, and distinguished Members of the House and  Senate: When we first met here 7 years ago--many of us for the first  time--it was with the hope of beginning something new for America. We meet  here tonight in this historic Chamber to continue that work. If anyone  expects just a proud recitation of the accomplishments of my  administration, I say let's leave that to history; we're not finished yet.  So, my message to you tonight is put on your work shoes; we're still on the  job.  
1988-2	1988	History records the power of the ideas that brought us here those 7 years  ago--ideas like the individual's right to reach as far and as high as his or  her talents will permit; the free market as an engine of economic progress.  And as an ancient Chinese philosopher, Lao-tzu, said: "Govern a great  nation as you would cook a small fish; do not overdo it." Well, these ideas  were part of a larger notion, a vision, if you will, of America  herself--an America not only rich in opportunity for the individual but an  America, too, of strong families and vibrant neighborhoods; an America  whose divergent but harmonizing communities were a reflection of a deeper  community of values: the value of work, of family, of religion, and of the  love of freedom that God places in each of us and whose defense He has  entrusted in a special way to this nation.  
1988-3	1988	All of this was made possible by an idea I spoke of when Mr. Gorbachev was  here--the belief that the most exciting revolution ever known to humankind  began with three simple words: "We the People," the revolutionary notion  that the people grant government its rights, and not the other way around.  And there's one lesson that has come home powerfully to me, which I would  offer to you now. Just as those who created this Republic pledged to each  other their lives, their fortunes, and their sacred honor, so, too,  America's leaders today must pledge to each other that we will keep  foremost in our hearts and minds not what is best for ourselves or for our  party but what is best for America.  
1988-4	1988	In the spirit of Jefferson, let us affirm that in this Chamber tonight  there are no Republicans, no Democrats--just Americans. Yes, we will have  our differences, but let us always remember what unites us far outweighs  whatever divides us. Those who sent us here to serve them--the millions of  Americans watching and listening tonight--expect this of us. Let's prove to  them and to ourselves that democracy works even in an election year. We've  done this before. And as we have worked together to bring down spending,  tax rates, and inflation, employment has climbed to record heights; America  has created more jobs and better, higher paying jobs; family income has  risen for 4 straight years, and America's poor climbed out of poverty at  the fastest rate in more than 10 years.  
1988-5	1988	Our record is not just the longest peacetime expansion in history but an  economic and social revolution of hope based on work, incentives, growth,  and opportunity; a revolution of compassion that led to private sector  initiatives and a 77-percent increase in charitable giving; a revolution  that at a critical moment in world history reclaimed and restored the  American dream.  
1988-6	1988	In international relations, too, there's only one description for what,  together, we have achieved: a complete turnabout, a revolution. Seven years  ago, America was weak, and freedom everywhere was under siege. Today  America is strong, and democracy is everywhere on the move. From Central  America to East Asia, ideas like free markets and democratic reforms and  human rights are taking hold. We've replaced "Blame America" with "Look up  to America." We've rebuilt our defenses. And of all our accomplishments,  none can give us more satisfaction than knowing that our young people are  again proud to wear our country's uniform.  
1988-7	1988	And in a few moments, I'm going to talk about three developments--arms  reduction, the Strategic Defense Initiative, and the global democratic  revolution--that, when taken together, offer a chance none of us would have  dared imagine 7 years ago, a chance to rid the world of the two great  nightmares of the postwar era. I speak of the startling hope of giving our  children a future free of both totalitarianism and nuclear terror.  
1988-8	1988	Tonight, then, we're strong, prosperous, at peace, and we are free. This is  the state of our Union. And if we will work together this year, I believe  we can give a future President and a future Congress the chance to make  that prosperity, that peace, that freedom not just the state of our Union  but the state of our world.  
1988-9	1988	Toward this end, we have four basic objectives tonight. First, steps we can  take this year to keep our economy strong and growing, to give our children  a future of low inflation and full employment. Second, let's check our  progress in attacking social problems, where important gains have been  made, but which still need critical attention. I mean schools that work,  economic independence for the poor, restoring respect for family life and  family values. Our third objective tonight is global: continuing the  exciting economic and democratic revolutions we've seen around the world.  Fourth and finally, our nation has remained at peace for nearly a decade  and a half, as we move toward our goals of world prosperity and world  freedom. We must protect that peace and deter war by making sure the next  President inherits what you and I have a moral obligation to give that  President: a national security that is unassailable and a national defense  that takes full advantage of new technology and is fully funded.  
1988-10	1988	This is a full agenda. It's meant to be. You see, my thinking on the next  year is quite simple: Let's make this the best of 8. And that means it's  all out--right to the finish line. I don't buy the idea that this is the  last year of anything, because we're not talking here tonight about  registering temporary gains but ways of making permanent our successes. And  that's why our focus is the values, the principles, and ideas that made  America great. Let's be clear on this point. We're for limited government,  because we understand, as the Founding Fathers did, that it is the best way  of ensuring personal liberty and empowering the individual so that every  American of every race and region shares fully in the flowering of American  prosperity and freedom.  
1988-11	1988	One other thing we Americans like--the future--like the sound of it, the  idea of it, the hope of it. Where others fear trade and economic growth, we  see opportunities for creating new wealth and undreamed-of opportunities  for millions in our own land and beyond. Where others seek to throw up  barriers, we seek to bring them down. Where others take counsel of their  fears, we follow our hopes. Yes, we Americans like the future and like  making the most of it. Let's do that now.  
1988-12	1988	And let's begin by discussing how to maintain economic growth by  controlling and eventually eliminating the problem of Federal deficits. We  have had a balanced budget only eight times in the last 57 years. For the  first time in 14 years, the Federal Government spent less in real terms  last year than the year before. We took $73 billion off last year's deficit  compared to the year before. The deficit itself has moved from 6.3 percent  of the gross national product to only 3.4 percent. And perhaps the most  important sign of progress has been the change in our view of deficits. You  know, a few of us can remember when, not too many years ago, those who  created the deficits said they would make us prosperous and not to worry  about the debt, because we owe it to ourselves. Well, at last there is  agreement that we can't spend ourselves rich.  
1988-13	1988	Our recent budget agreement, designed to reduce Federal deficits by $76  billion over the next 2 years, builds on this consensus. But this agreement  must be adhered to without slipping into the errors of the past: more  broken promises and more unchecked spending. As I indicated in my first  State of the Union, what ails us can be simply put: The Federal Government  is too big, and it spends too much money. I can assure you, the bipartisan  leadership of Congress, of my help in fighting off any attempt to bust our  budget agreement. And this includes the swift and certain use of the veto  power.  
1988-14	1988	Now, it's also time for some plain talk about the most immediate obstacle  to controlling Federal deficits. The simple but frustrating problem of  making expenses match revenues--something American families do and the  Federal Government can't--has caused crisis after crisis in this city. Mr.  Speaker, Mr. President, I will say to you tonight what I have said before  and will continue to say: The budget process has broken down; it needs a  drastic overhaul. With each ensuing year, the spectacle before the American  people is the same as it was this Christmas: budget deadlines delayed or  missed completely, monstrous continuing resolutions that pack hundreds of  billions of dollars worth of spending into one bill, and a Federal  Government on the brink of default.  
1988-15	1988	I know I'm echoing what you here in the Congress have said, because you  suffered so directly. But let's recall that in 7 years, of 91  appropriations bills scheduled to arrive on my desk by a certain date, only  10 made it on time. Last year, of the 13 appropriations bills due by  October 1st, none of them made it. Instead, we had four continuing  resolutions lasting 41 days, then 36 days, and 2 days, and 3 days,  respectively.  
1988-16	1988	And then, along came these behemoths. This is the conference report--1,053  pages, report weighing 14 pounds. Then this--a reconciliation bill 6 months  late that was 1,186 pages long, weighing 15 pounds. And the long-term  continuing resolution--this one was 2 months late, and it's 1,057 pages  long, weighing 14 pounds. That was a total of 43 pounds of paper and ink.  You had 3 hours--yes, 3 hours--to consider each, and it took 300 people at  my Office of Management and Budget just to read the bill so the Government  wouldn't shut down. Congress shouldn't send another one of these. No, and  if you do, I will not sign it.  
1988-17	1988	Let's change all this. Instead of a Presidential budget that gets discarded  and a congressional budget resolution that is not enforced, why not a  simple partnership, a joint agreement that sets out the spending priorities  within the available revenues? And let's remember our deadline is October  1st, not Christmas. Let's get the people's work done in time to avoid a  footrace with Santa Claus. And, yes, this year--to coin a phrase--a new  beginning: 13 individual bills, on time and fully reviewed by Congress.  
1988-18	1988	I'm also certain you join me in saying: Let's help ensure our future of  prosperity by giving the President a tool that, though I will not get to  use it, is one I know future Presidents of either party must have. Give the  President the same authority that 43 Governors use in their States: the  right to reach into massive appropriation bills, pare away the waste, and  enforce budget discipline. Let's approve the line-item veto.  
1988-19	1988	And let's take a partial step in this direction. Most of you in this  Chamber didn't know what was in this catchall bill and report. Over the  past few weeks, we've all learned what was tucked away behind a little  comma here and there. For example, there's millions for items such as  cranberry research, blueberry research, the study of crawfish, and the  commercialization of wildflowers. And that's not to mention the five or so  million ($.5 million) that--so that people from developing nations could  come here to watch Congress at work. I won't even touch that. So, tonight I  offer you this challenge. In 30 days I will send back to you those items as  rescissions, which if I had the authority to line them out I would do so.  
1988-20	1988	Now, review this multibillion-dollar package that will not undercut our  bipartisan budget agreement. As a matter of fact, if adopted, it will  improve our deficit reduction goals. And what an example we can set, that  we're serious about getting our financial accounts in order. By acting and  approving this plan, you have the opportunity to override a congressional  process that is out of control.  
1988-21	1988	There is another vital reform. Yes, Gramm-Rudman-Hollings has been  profoundly helpful, but let us take its goal of a balanced budget and make  it permanent. Let us do now what so many States do to hold down spending  and what 32 State legislatures have asked us to do. Let us heed the wishes  of an overwhelming plurality of Americans and pass a constitutional  amendment that mandates a balanced budget and forces the Federal Government  to live within its means. Reform of the budget process--including the  line-item veto and balanced budget amendment--will, together with real  restraint on government spending, prevent the Federal budget from ever  again ravaging the family budget.  
1988-22	1988	Let's ensure that the Federal Government never again legislates against the  family and the home. Last September 1 signed an Executive order on the  family requiring that every department and agency review its activities in  light of seven standards designed to promote and not harm the family. But  let us make certain that the family is always at the center of the public  policy process not just in this administration but in all future  administrations. It's time for Congress to consider, at the beginning, a  statement of the impact that legislation will have on the basic unit of  American society, the family.  
1988-23	1988	And speaking of the family, let's turn to a matter on the mind of every  American parent tonight: education. We all know the sorry story of the  sixties and seventies--soaring spending, plummeting test scores--and that  hopeful trend of the eighties, when we replaced an obsession with dollars  with a commitment to quality, and test scores started back up. There's a  lesson here that we all should write on the blackboard a hundred times: In  a child's education, money can never take the place of basics like  discipline, hard work, and, yes, homework.  
1988-24	1988	As a nation we do, of course, spend heavily on education--more than we  spend on defense. Yet across our country, Governors like New Jersey's Tom  Kean are giving classroom demonstrations that how we spend is as important  as how much we spend. Opening up the teaching profession to all qualified  candidates, merit pay--so that good teachers get A's as well as apples--and  stronger curriculum, as Secretary Bennett has proposed for high  schools--these imaginative reforms are making common sense the most popular  new kid in America's schools. How can we help? Well, we can talk about and  push for these reforms. But the most important thing we can do is to  reaffirm that control of our schools belongs to the States, local  communities and, most of all, to the parents and teachers.  
1988-25	1988	My friends, some years ago, the Federal Government declared war on poverty,  and poverty won. Today the Federal Government has 59 major welfare programs  and spends more than $100 billion a year on them. What has all this money  done? Well, too often it has only made poverty harder to escape. Federal  welfare programs have created a massive social problem. With the best of  intentions, government created a poverty trap that wreaks havoc on the very  support system the poor need most to lift themselves out of poverty: the  family. Dependency has become the one enduring heirloom, passed from one  generation to the next, of too many fragmented families.  
1988-26	1988	It is time--this may be the most radical thing I've said in 7 years in this  office--it's time for Washington to show a little humility. There are a  thousand sparks of genius in 50 States and a thousand communities around  the Nation. It is time to nurture them and see which ones can catch fire  and become guiding lights. States have begun to show us the way. They've  demonstrated that successful welfare programs can be built around more  effective child support enforcement practices and innovative programs  requiring welfare recipients to work or prepare for work. Let us give the  States more flexibility and encourage more reforms. Let's start making our  welfare system the first rung on America's ladder of opportunity, a boost  up from dependency, not a graveyard but a birthplace of hope.  
1988-27	1988	And now let me turn to three other matters vital to family values and the  quality of family life. The first is an untold American success story.  Recently, we released our annual survey of what graduating high school  seniors have to say about drugs. Cocaine use is declining, and marijuana  use was the lowest since surveying began. We can be proud that our students  are just saying no to drugs. But let us remember what this menace requires:  commitment from every part of America and every single American, a  commitment to a drugfree America. The war against drugs is a war of  individual battles, a crusade with many heroes, including America's young  people and also someone very special to me. She has helped so many of our  young people to say no to drugs. Nancy, much credit belongs to you, and I  want to express to you your husband's pride and your country's thanks.'.  Surprised you, didn't I?  
1988-28	1988	Well, now we come to a family issue that we must have the courage to  confront. Tonight, I call America--a good nation, a moral people--to  charitable but realistic consideration of the terrible cost of abortion on  demand. To those who say this violates a woman's right to control of her  own body: Can they deny that now medical evidence confirms the unborn child  is a living human being entitled to life, liberty, and the pursuit of  happiness? Let us unite as a nation and protect the unborn with legislation  that would stop all Federal funding for abortion and with a human life  amendment making, of course, an exception where the unborn child threatens  the life of the mother. Our Judeo-Christian tradition recognizes the right  of taking a life in self-defense. But with that one exception, let us look  to those others in our land who cry out for children to adopt. I pledge to  you tonight I will work to remove barriers to adoption and extend full  sharing in family life to millions of Americans so that children who need  homes can be welcomed to families who want them and love them.  
1988-29	1988	And let me add here: So many of our greatest statesmen have reminded us  that spiritual values alone are essential to our nation's health and vigor.  The Congress opens its proceedings each day, as does the Supreme Court,  with an acknowledgment of the Supreme Being. Yet we are denied the right to  set aside in our schools a moment each day for those who wish to pray. I  believe Congress should pass our school prayer amendment.  
1988-30	1988	Now, to make sure there is a full nine member Supreme Court to interpret  the law, to protect the rights of all Americans, I urge the Senate to move  quickly and decisively in confirming Judge Anthony Kennedy to the highest  Court in the land and to also confirm 27 nominees now waiting to fill  vacancies in the Federal judiciary.  
1988-31	1988	Here then are our domestic priorities. Yet if the Congress and the  administration work together, even greater opportunities lie ahead to  expand a growing world economy, to continue to reduce the threat of nuclear  arms, and to extend the frontiers of freedom and the growth of democratic  institutions.  
1988-32	1988	Our policies consistently received the strongest support of the late  Congressman Dan Daniel of Virginia. I'm sure all of you join me in  expressing heartfelt condolences on his passing.  
1988-33	1988	One of the greatest contributions the United States can make to the world  is to promote freedom as the key to economic growth. A creative,  competitive America is the answer to a changing world, not trade wars that  would close doors, create greater barriers, and destroy millions of jobs.  We should always remember: Protectionism is destructionism. America's jobs,  America's growth, America's future depend on trade--trade that is free,  open, and fair.  
1988-34	1988	This year, we have it within our power to take a major step toward a  growing global economy and an expanding cycle of prosperity that reaches to  all the free nations of this Earth. I'm speaking of the historic free trade  agreement negotiated between our country and Canada. And I can also tell  you that we're determined to expand this concept, south as well as north.  Next month I will be traveling to Mexico, where trade matters will be of  foremost concern. And over the next several months, our Congress and the  Canadian Parliament can make the start of such a North American accord a  reality. Our goal must be a day when the free flow of trade, from the tip  of Tierra del Fuego to the Arctic Circle, unites the people of the Western  Hemisphere in a bond of mutually beneficial exchange, when all borders  become what the U.S.-Canadian border so long has been: a meeting place  rather than a dividing line.  
1988-35	1988	This movement we see in so many places toward economic freedom is  indivisible from the worldwide movement toward political freedom and  against totalitarian rule. This global democratic revolution has removed  the specter, so frightening a decade ago, of democracy doomed to permanent  minority status in the world. In South and Central America, only a third of  the people enjoyed democratic rule in 1976. Today over 90 percent of Latin  Americans live in nations committed to democratic principles. And the  resurgence of democracy is owed to these courageous people on almost every  continent who have struggled to take control of their own destiny.  
1988-36	1988	In Nicaragua the struggle has extra meaning, because that nation is so near  our own borders. The recent revelations of a former high-level Sandinista  major, Roger Miranda, show us that, even as they talk peace, the Communist  Sandinista government of Nicaragua has established plans for a large  600,000-man army. Yet even as these plans are made, the Sandinista regime  knows the tide is turning, and the cause of Nicaraguan freedom is riding at  its crest. Because of the freedom fighters, who are resisting Communist  rule, the Sandinistas have been forced to extend some democratic rights,  negotiate with church authorities, and release a few political prisoners.  
1988-37	1988	The focus is on the Sandinistas, their promises and their actions. There is  a consensus among the four Central American democratic Presidents that the  Sandinistas have not complied with the plan to bring peace and democracy to  all of Central America. The Sandinistas again have promised reforms. Their  challenge is to take irreversible steps toward democracy. On Wednesday my  request to sustain the freedom fighters will be submitted, which reflects  our mutual desire for peace, freedom, and democracy in Nicaragua. I ask  Congress to pass this request. Let us be for the people of Nicaragua what  Lafayette, Pulaski, and Von Steuben were for our forefathers and the cause  of American independence.  
1988-38	1988	So, too, in Afghanistan, the freedom fighters are the key to peace. We  support the Mujahidin. There can be no settlement unless all Soviet troops  are removed and the Afghan people are allowed genuine self-determination. I  have made my views on this matter known to Mr. Gorbachev. But not just  Nicaragua or Afghanistan--yes, everywhere we see a swelling freedom tide  across the world: freedom fighters rising up in Cambodia and Angola,  fighting and dying for the same democratic liberties we hold sacred. Their  cause is our cause: freedom.  
1988-39	1988	Yet even as we work to expand world freedom, we must build a safer peace  and reduce the danger of nuclear war. But let's have no illusions. Three  years of steady decline in the value of our annual defense investment have  increased the risk of our most basic security interests, jeopardizing  earlier hard-won goals. We must face squarely the implications of this  negative trend and make adequate, stable defense spending a top goal both  this year and in the future.  
1988-40	1988	This same concern applies to economic and security assistance programs as  well. But the resolve of America and its NATO allies has opened the way for  unprecedented achievement in arms reduction. Our recently signed INF treaty  is historic, because it reduces nuclear arms and establishes the most  stringent verification regime in arms control history, including several  forms of short-notice, on-site inspection. I submitted the treaty today,  and I urge the Senate to give its advice and consent to ratification of  this landmark agreement. Thank you very much.  
1988-41	1988	In addition to the INF treaty, we're within reach of an even more  significant START agreement that will reduce U.S. and Soviet long-range  missile--or strategic arsenals by half. But let me be clear. Our approach  is not to seek agreement for agreement's sake but to settle only for  agreements that truly enhance our national security and that of our allies.  We will never put our security at risk--or that of our allies--just to reach  an agreement with the Soviets. No agreement is better than a bad  agreement.  
1988-42	1988	As I mentioned earlier, our efforts are to give future generations what we  never had--a future free of nuclear terror. Reduction of strategic  offensive arms is one step, SDI another. Our funding request for our  Strategic Defense Initiative is less than 2 percent of the total defense  budget. SDI funding is money wisely appropriated and money well spent. SDI  has the same purpose and supports the same goals of arms reduction. It  reduces the risk of war and the threat of nuclear weapons to all mankind.  Strategic defenses that threaten no one could offer the world a safer, more  stable basis for deterrence. We must also remember that SDI is our  insurance policy against a nuclear accident, a Chernobyl of the sky, or an  accidental launch or some madman who might come along.  
1988-43	1988	We've seen such changes in the world in 7 years. As totalitarianism  struggles to avoid being overwhelmed by the forces of economic advance and  the aspiration for human freedom, it is the free nations that are resilient  and resurgent. As the global democratic revolution has put totalitarianism  on the defensive, we have left behind the days of retreat. America is again  a vigorous leader of the free world, a nation that acts decisively and  firmly in the furtherance of her principles and vital interests. No legacy  would make me more proud than leaving in place a bipartisan consensus for  the cause of world freedom, a consensus that prevents a paralysis of  American power from ever occurring again.  
1988-44	1988	But my thoughts tonight go beyond this, and I hope you'll let me end this  evening with a personal reflection. You know, the world could never be  quite the same again after Jacob Shallus, a trustworthy and dependable  clerk of the Pennsylvania General Assembly, took his pen and engrossed  those words about representative government in the preamble of our  Constitution. And in a quiet but final way, the course of human events was  forever altered when, on a ridge overlooking the Emmitsburg Pike in an  obscure Pennsylvania town called Gettysburg, Lincoln spoke of our duty to  government of and by the people and never letting it perish from the  Earth.  
1988-45	1988	At the start of this decade, I suggested that we live in equally momentous  times, that it is up to us now to decide whether our form of government  would endure and whether history still had a place of greatness for a  quiet, pleasant, greening land called America. Not everything has been made  perfect in 7 years, nor will it be made perfect in seven times 70 years,  but before us, this year and beyond, are great prospects for the cause of  peace and world freedom.  
1988-46	1988	It means, too, that the young Americans I spoke of 7 years ago, as well as  those who might be coming along the Virginia or Maryland shores this night  and seeing for the first time the lights of this Capital City--the lights  that cast their glow on our great halls of government and the monuments to  the memory of our great men--it means those young Americans will find a  city of hope in a land that is free.  
1988-47	1988	We can be proud that for them and for us, as those lights along the Potomac  are still seen this night signaling as they have for nearly two centuries  and as we pray God they always will, that another generation of Americans  has protected and passed on lovingly this place called America, this  shining city on a hill, this government of, by, and for the people.  
1988-48	1988	Thank you, and God bless you.  
1988-49	1988	NOTE: The President spoke at 9:07 p.m. in the House Chamber of the Capitol.  He was introduced by Jim Wright, Speaker of the House of Representatives.  The address was broadcast live on nationwide radio and television.  
1990-1	1990	Tonight, I come not to speak about the "State of the Government", not to  detail every new initiative we plan for the coming year, nor describe every  line in the budget. I'm here to speak to you and to the American people  about the State of the Union about our world, the changes we've seen, the  challenges we face. And what that means for America.  
1990-2	1990	There are singular moments in history, dates that divide all that goes  before from all that comes after. And many of us in this chamber have lived  much of our lives in a world whose fundamental features were defined in  1945. And the events of that year decreed the shape of nations, the pace of  progress, freedom or oppression for millions of people around the world.  
1990-3	1990	Nineteen Forty-Five provided the common frame of reference the compass  points of the postwar era we've relied upon to understand ourselves. And  that was our world until now. The events of the year just ended, the  Revolution of '89, have been a chain reaction, changes so striking that it  marks the beginning of a new era in the world's affairs.  
1990-4	1990	Think back think back just twelve short months ago to the world we knew as  1989 began.  
1990-5	1990	One year, one year ago the people of Panama lived in fear under the thumb  of a dictator. Today democracy is restored. Panama is free.  
1990-6	1990	"Operation Just Cause" has achieved its objective. And the number of  military personel in Panama is now very close to what it was before the  operation began. And tonight I am announcing that before the end of  February the additional numbers of American troops, the brave men and women  of our armed forces who made this mission a success, will be back home.  
1990-7	1990	A year ago in Poland, Lech Walesa declared he was ready to open a dialogue  with the Communist rulers of that country. And today, with the future of a  free Poland in their own hands, members of Solidarity lead the Polish  government.  
1990-8	1990	And a year ago, freedom's playwright, Vaclav Havel, languished as a  prisoner in Prague. And today it's Vaclav Havel, President of  Czechoslovakia.  
1990-9	1990	And one year ago Erich Honecker of East Germany claimed history as his  guide. He predicted the Berlin Wall would last another hundred years. And  today, less than one year later, it's the wall that's history.  
1990-10	1990	Remarkable events, remarkable events, events that fulfill the long-held  hopes of the American people. Events that validate the longstanding goals  of American policy, a policy based upon a single shining principle: the  cause of freedom.  
1990-11	1990	America, not just the nation, but an idea alive in the minds of the people,  everywhere. As this new world takes shape, America stands at the center of  a widening circle of freedom, today, tomorrow and into the next century.  
1990-12	1990	Our nation is the enduring dream of every immigrant who ever set foot on  these shores, and the millions still struggling to be free. This nation,  this idea called America was and always will be a new world, our new  world.  
1990-13	1990	At a workers' rally in a place called Branik on the outskirts of Prague the  idea called America is alive. A worker, dressed in grimy overalls, rises to  speak at the factory gates. And he begins his speech to his fellow citizens  with these words, words of a distant revolution: "We hold these truths to  be self-evident. That all men are created equal, that they are endowed by  their creator with certain unalienable rights, and that among these are  life, liberty and the pursuit of happiness." It's no secret here at home  freedom's door opened long ago. The cornerstones of this free society have  already been set in place: democracy, competition, opportunity, private  investment, stewardship, and of course, leadership.  
1990-14	1990	And our challenge today is to take this democratic system of ours, a system  second to none, and make it better:  
1990-15	1990	A better America where there's a job for whoever wants one;  
1990-16	1990	Where women working outside the home can be confident their children are  in safe and loving care, and where Government works to expand child  alternatives for parents.  
1990-17	1990	Where we reconcile the needs of a clean environment and a strong economy.  
1990-18	1990	Where "Made in the USA" is recognized around the world as the symbol of  quality and progress,  
1990-19	1990	And where every one of us enjoys the same opportunities to live, to work  and to contribute to society. And where, for the first time, the American  mainstream includes all of our disabled citizens.  
1990-20	1990	Where everyone has a roof over his head, and where the homeless get the  help they need to live in dignity.  
1990-21	1990	Where our schools challenge and support our kids and our teachers, and  every one of them makes the grade,  
1990-22	1990	Where every street, every city, every school and every child is drug-free.  
1990-23	1990	And finally, and finally, where no American is forgotten. Our hearts go out  to our hostages, our hostages who are ceaselessly in our minds and in our  efforts. That's part of the future we want to see, the future we can make  for ourselves. But dreams alone won't get us there. We need to extend our  horizon, to commit to the long view. And our mission for the future starts  today.  
1990-24	1990	In the tough competitive markets around the world, America faces the great  challenges and great opportunities. And we know that we can succeed in the  global economic arena of the 90's. But to meet that challenge we must make  some fundamental changes, some crucial investments in ourselves.  
1990-25	1990	Yes, we are going to invest in America. This Administration is determined  to encourage the creation of capital, capital of all kinds. Physical  capital: everything from our farms and factories to our workshops and  production lines, all that is needed to produce and deliver quality goods  and quality services. Intellectual, intellectual capital: the source of  ideas that spark tomorrow's products. And of course human capital: the  talented work force that we'll need to compete in the global market.  
1990-26	1990	And let me tell you, if we ignore human capital, if we lose the spirit of  American ingenuity, the sprit that is the hallmark of the AMERICAN worker,  that would be bad. The American worker is the most productive worker in the  world.  
1990-27	1990	We need to save more. We need to expand the pool of capital for new  investments that mean more jobs and more growth. And that's the idea behind  the new initiative I call the Family Savings Plan, which I will send to  Congress tomorrow.  
1990-28	1990	We need to cut the tax on capital gains, encourage, encourage risk-takers,  especially those in small businesses, to take those steps that translate  into economic reward, jobs, and a better life for all of us.  
1990-29	1990	We'll do what it takes to invest in America's future. The budget commitment  is there. The money is there. It's there for research and development, R  and D, a record high. It's there for our housing initiative, hope, H-O-P-E,  to help everyone from first-time homebuyers to the homeless. The money's  there to keep our kids drug-free, 70 percent more than when I took office  in 1989. It's there for space exploration, and its there for education,  another record high.  
1990-30	1990	And one more, and one more thing. Last fall at the education summit, the  governors and I agreed to look for ways to help make sure that our kids are  ready to learn the very first day they walk into the classroom. And I've  made good on that commitment by proposing a record increase in funds, an  extra half billion dollars, for something near and dear to all of us: Head  Start.  
1990-31	1990	Education is the one investment that means more for our future, because it  means the most for our children. Real improvement in our schools is not  simply a matter of spending more. It's a matter of asking more, expecting  more, of our schools, our teachers, of our kids, of our parents and of  ourselves. And that's why tonight, and that's why tonight, I am announcing  America's education goals, goals developed with enormous cooperation from  the nation's governors. And if I might I'd like to say I'm very pleased  that Governor Gardner and Governor Clinton, Governor Branstad, Governor  Campbell, all of whom were very key in these discussion, these  deliberations, are with us here tonight.  
1990-32	1990	By the, by the year 2000, every child must start school ready to learn. The  United States must increase the high school graduation rate to no less than  90 percent. And we are going to make sure our schools' diplomas mean  something. In critical subjects, at the fourth, eighth, and 12th grades, we  must assess our students' performance.  
1990-33	1990	By the, by the year 2000 U.S. students must be the first in the world in  math and science achievement. Every American adult must be a skilled,  literate worker and citizen. Every school must offer the kind of  disciplined environment that makes it possible for our kids to learn. And  every school in America must be drug-free.  
1990-34	1990	Ambitious aims? Of course. Easy to do? Far from it. But the future's at  stake. The nation will not accept anything less than excellence in  education.  
1990-35	1990	These investments will help keep America competitive. And I know this about  the American people: we welcome competition. We'll match our ingenuity, our  energy, our experience, and technology our spirit and enterprise against  anyone. But let the competition be free, but let it also be fair. America  is ready.  
1990-36	1990	Since we really mean it, and since we're serious about being ready to meet  our challenge, we're getting our own house in order. We have made real  progress. Seven years ago, the Federal deficit was 6 percent of our gross  national product, 6 percent. In the new budget I sent up two days ago the  deficit is down to 1 percent of GNP.  
1990-37	1990	That budget brings Federal spending under control. It meets the  Gramm-Rudman target. It brings the deficit down further. And balances the  budget by 1993, with no new taxes.  
1990-38	1990	And let me tell you, there's still more than enough Federal spending. For  most of us, $1.2 trillion is still a lot of money.  
1990-39	1990	And once the budget is balanced, we can operate the way every family must  when it has bills to pay. We won't leave it to our children and  grandchildren. Once it's balanced, we will start paying off the national  debt.  
1990-40	1990	And there's something more, and there's something more we owe the  generations of the future: stewardship, the safekeeping of America's  precious environmental inheritance.  
1990-41	1990	As just one sign of how serious we are, we will elevate the Environmental  Protection Agency to Cabinet rank. Not, not more bureaucracy, not more red  tape, but the certainty that here at home, and especially in our dealings  with other nations, environmental issues have the status they deserve.  
1990-42	1990	This year's budget provides over $2 billion in new spending to protect our  environment, with over $1 billion for global change research, and a new  initiative I call America the Beautiful to expand our national parks and  wildlife preserves and improve recreational facilities on public lands.  
1990-43	1990	And something else, something that will help keep this country clean, from  our forest land to the inner cities, and keep America beautiful for  generations to come, the money to plant a billion trees a year.  
1990-44	1990	And tonight, and tonight let me say again to all the members of the  Congress, the American people did not send us here to bicker. There is work  to do, and they sent us here to get it done. And once again, in the spirit  of cooperation I offer my hand to all of you. And let's work together to do  the will of the people--clean air, child care, the educational excellence  act, crime and drugs. It's time to act. The farm bill, transportation  policy, product liability reform, enterprise zones. It's time to act  together.  
1990-45	1990	And there's one thing I hope we can agree on. It's about our commitments.  And I'm talking about Social Security.  
1990-46	1990	To every American out there on Social Security, to every, every American  supporting that system today, and to everyone counting on it when they  retire, we made a promise to you, and we are going to keep it.  
1990-47	1990	We, we rescued the system in 1983 and it's sound again, bipartisan  arrangement. Our budget fully funds today's benefits and it assures that  future benefits will be funded as well. And the last thing we need to do is  mess around with Social Security.  
1990-48	1990	There's one more problem we need to address. We must give careful  consideration to the recommendations of the health care studies under way  now. And that's why tonight, I am asking Dr. Sullivan, Lou Sullivan,  Secretary of Health and Human Services, to lead a Domestic Policy Council  review of recommendations on the quality, accessibility and cost of our  nation's health care system. I am committed to bring the staggering costs  of health care under control.  
1990-49	1990	The State of the Government does indeed depend on many of us in this very  chamber. But the State of the Union depends on all Americans. We must  maintain the democratic decency that makes a nation out of millions of  individuals. And I've been appalled at the recent mail bombings across this  country. Every one of us must confront and condemn racism, anti-Semitism,  bigotry and hate. Not next week, not tomorrow, but right now. Every single  one of us.  
1990-50	1990	The State of the Union depends on whether we help our neighbor, claim the  problems of our community as our own. We've got to step forward when  there's trouble, lend a hand, be what I call a point of light to a stranger  in need. We've got to take the time after a busy day to sit down and read  with our kids, help them with their homework, pass along the values we had  as children. And that's how we sustain the State of the Union.  
1990-51	1990	Every effort is important. It all adds up. It's doing the things that give  democracy meaning. It all adds up to who we are and who we will be.  
1990-52	1990	And let me say, that so long as we remember the American idea, so long as  we live up to the American ideal, the State of the Union will remain sound  and strong.  
1990-53	1990	And to those who worry that we've lost our way, well, I want you to listen  to parts of a letter written by James Markwell, Pvt. 1st Class James  Markwell, a 20-year-old Army medic to the First Battalion, 75th Rangers.  It's dated Dec. 18, the day before our armed forces went into action in  Panama. It's a letter servicemen write--and hope will never, ever be sent.  And sadly, Private Markwell's mother did receive this letter. She passed it  on to me out there in Cincinnati.  
1990-54	1990	And here is some of what he wrote: "I've never been afraid of death, but I  know he is waiting at the corner...I've been trained to kill and to save,  and so has everyone else. I am frightened of what lays beyond the fog, and  yet... do not mourn for me. Revel in the life that I have died to give  you... But most of all, don't forget that the Army was my choice. Something  that I wanted to do. Remember I joined the Army to serve my country and  inure that you are free to do what you want and to live your lives  freely."  
1990-55	1990	Let me add that Private Markwell was among the first to see battle in  Panama, and among the first to fall. But he knew what he believed in. He  carried the idea we call America in his heart.  
1990-56	1990	I began tonight speaking about the changes we've seen this past year. There  is a new world of challenges and opportunities before us. And there is a  need for leadership that only America can provide.  
1990-57	1990	Nearly 40 years ago, in his last address to the Congress, President Harry  Truman predicted such a time would come. He said, "As our world grows  stronger, more united, more attractive to men on both sides of the Iron  Curtain, then inevitably there will come a time of change within the  Communist world." Today, that change is taking place.  
1990-58	1990	For more than 40 years, America and its allies held Communism in check and  insured that democracy would continue to exist. And today, with Communism  crumbling, our aim must be to insure democracy's advance, to take the lead  in forging peace and freedom's best hope, a great and growing commonwealth  of free nations.  
1990-59	1990	And to the Congress and to all Americans, I say it is time to acclaim a new  consensus at home and abroad, a common vision of the peaceful world we want  to see.  
1990-60	1990	Here in our own hemisphere it is time for all the people of the Americas,  North and South, to live in freedom.  
1990-61	1990	In the Far East and Africa, it's time for the full flowering of free  governments and free markets that have served the engine of progress.  
1990-62	1990	It is time to offer our hand to the emerging democracies of Eastern Europe  so that continent, for too long a continent divided, can see a future whole  and free.  
1990-63	1990	It's time to build on our new relationship with the Soviet Union, to  endorse and encourage a peaceful process of internal change toward  democracy and economic opportunity.  
1990-64	1990	We are in a period of great transition, great hope, and yet great  uncertainty. We recognize that the Soviet military threat in Europe is  diminishing, but we see little change in Soviet strategic modernization.  And, therefore, we must sustain our own strategic offense modernization and  the Strategic Defense Initiative.  
1990-65	1990	But the time is right to move forward on a conventional arms control  agreement to move us to more appropriate levels of military forces in  Europe, a coherent defense program that insures the U.S. will continue to  be a catalyst for peaceful change in Europe. And I've consulted with  leaders of NATO. In fact I spoke by phone with President Gorbachev just  today.  
1990-66	1990	And I agree with our European allies that an American military presence in  Europe is essential and that it should not be solely tied to the Soviet  military presence in Eastern Europe.  
1990-67	1990	But our troop levels can still be lower. And so tonight I am announcing a  major new step for a further reduction in U.S. and Soviet manpower in  Central and Eastern Europe to 195,000 on each side.  
1990-68	1990	This number, this number, this level, reflects the advice of our senior  military advisers. It's designed to protect American and European interests  and sustain NATO's defense strategy. A swift conclusion to our arms control  talks--conventional, chemical and strategic--must now be our goal. And  that time has come.  
1990-69	1990	Still, we must recognize an unfortunate fact: in many regions of the world  tonight the reality is conflict, not peace. Enduring animosities and  opposing interests remain. And thus the cause of peace must be served by an  America strong enough and sure enough to defend our interests and our  ideals. It's this American idea that for the past four decades helped  inspire the Revolution of '89.  
1990-70	1990	And here at home, and in the world, there is history in the making, and  history to be made. Six months ago, early in this season of change, I stood  at the gates of the Gdansk shipyard in Poland at the monument to the fallen  workers of Solidarity. It's a monument of simple majesty. Three tall  crosses rise up from the stones, and atop each cross, an anchor, an ancient  symbol of hope.  
1990-71	1990	The anchor in our world today is freedom. Holding us steady in times of  change, a symbol of hope to all the world. And freedom is at the very heart  of the idea that is America. Giving life to the idea depends on every one  of us. Our anchor has always been faith and family.  
1990-72	1990	In the last few days of this past monumentous year, our family was blessed  once more, celebrating the joy of life when a little boy became our 12th  grandchild. When I held the little guy for the first time, the troubles at  home and abroad seemed manageable, and totally in perspective.  
1990-73	1990	And now I know, I know you're probably thinking, Well, that's just a  grandfather talking.  
1990-74	1990	Well, maybe you're right. But I've met a lot of children this past year  across this country, as all of you have. Everywhere from the Far East to  Eastern Europe. All kids are unique. Yet, all kids are alike. The budding  young environmentalist I met this month, who joined me in exploring the  Florida Everglades. The Little Leaguers I played catch with in Poland,  ready to go from Warsaw to the World Series. And even the kids who are ill  or alone--and God bless those boarder babies, born addicted to drugs and  AIDS--coping with problems no child should have to face. But, you know,  when it comes to hope and the future, every kid is the same: full of  dreams, ready to take on the world, all special because they are the very  future of freedom. And to them belongs this new world I've been speaking  about.  
1990-75	1990	And so tonight, I'm going to ask something of every one of you. Now let me  start with my generation, with the grandparents out there. You are our  living link with the past. Tell your grandchildren the story of struggles  waged at home and abroad, of sacrifices freely made for freedom's sake. And  tell them your own story as well, because every American has a story to  tell.  
1990-76	1990	And parents, your children look to you for direction and guidance. Tell  them of faith and family. Tell them we are one nation under God. Teach them  that of all the many gifts they can receive, liberty is their most precious  legacy. And of all the gifts they can give, the greatest, the greatest is  helping others.  
1990-77	1990	And to the children and young people out there tonight, with you rests our  hope, all that America will mean in the years and decades ahead. Fix your  vision on a new century, your century, on dreams we cannot see, on the  destiny that is yours and yours alone.  
1990-78	1990	And finally, let all Americans, all of us here in this chamber, the  symbolic center of democracy, affirm our allegiance to this idea we call  America. And let us remember that the State of the Union depends upon each  and every one of us.  
1990-79	1990	God bless all of you. And may God bless this great nation, the United  States of America.  
1991-1	1991	Mr. President, Mr. Speaker, members of the United States Congress.  
1991-2	1991	I come to this house of the people to speak to you and all Americans,  certain we stand at a defining hour.  
1991-3	1991	Halfway around the world, we are engaged in a great struggle in the skies  and on the seas and sands. We know why we're there. We are Americans--part  of something larger than ourselves.  
1991-4	1991	For two centuries we've done the hard work of freedom. And tonight we lead  the world in facing down a threat to decency and humanity.  
1991-5	1991	What is at stake is more than one small country, it is a big idea--a new  world order, where diverse nations are drawn together in common cause to  achieve the universal aspirations of mankind: peace and security, freedom,  and the rule of law. Such is a world worthy of our struggle, and worthy of  our children's future.  
1991-6	1991	The community of nations has resolutely gathered to condemn and repel  lawless aggression. Saddam Hussein's unprovoked invasion--his ruthless,  systematic rape of a peaceful neighbor--violated everything the community  of nations holds dear. The world has said this aggression would not stand,  and it will not stand.  
1991-7	1991	Together, we have resisted the trap of appeasement, cynicism and isolation  that gives temptation to tyrants. The world has answered Saddam's invasion  with 12 United Nations resolutions, starting with a demand for Iraq's  immediate and unconditional withdrawal, and backed up by forces from 28  countries of six continents. With few exceptions, the world now stands as  one.  
1991-8	1991	The end of the cold war has been a victory for all humanity. A year and a  half ago, in Germany, I said our goal was a Europe whole and free. Tonight,  Germany is united. Europe has become whole and free, and America's  leadership was instrumental in making it possible.  
1991-9	1991	The principle that has guided us is simple: our objective is to help the  Baltic peoples achieve their aspirations, not to punish the Soviet Union.  In our recent discussions with the Soviet leadership we have been given  representations, which, if fulfilled, would result in the withdrawal of  some Soviet forces, a re-opening of dialogue with the republics, and a move  away from violence.  
1991-10	1991	We will watch carefully as the situation develops. And we will maintain our  contact with the Soviet leadership to encourage continued commitment to  democratization and reform.  
1991-11	1991	If it is possible, I want to continue to build a lasting basis for  U.S.-Soviet cooperation, for a more peaceful future for all mankind.  
1991-12	1991	The triumph of democratic ideas in Eastern Europe and Latin America, and  the continuing struggle for freedom elsewhere around the world all confirm  the wisdom of our nation's founders.  
1991-13	1991	Tonight, we work to achieve another victory, a victory over tyranny and  savage aggression.  
1991-14	1991	We in this Union enter the last decade of the 20th Century thankful for all  our blessings, steadfast in our purpose, aware of our difficulties and  responsive to our duties at home and around the world.  
1991-15	1991	For two centuries, America has served the world as an inspiring example of  freedom and democracy. For generations, America has led the struggle to  preserve and extend the blessings of liberty. And today, in a rapidly  changing world, American leadership is indispensable. Americans know that  leadership brings burdens, and requires sacrifice.  
1991-16	1991	But we also know why the hopes of humanity turn to us. We are Americans; we  have a unique responsibility to do the hard work of freedom. And when we  do, freedom works.  
1991-17	1991	The conviction and courage we see in the Persian Gulf today is simply the  American character in action. The indomitable spirit that is contributing  to this victory for world peace and justice is the same spirit that gives  us the power and the potential to meet our challenges at home.  
1991-18	1991	We are resolute and resourceful. If we can selflessly confront evil for the  sake of good in a land so far away, then surely we can make this land all  it should be.  
1991-19	1991	If anyone tells you America's best days are behind her, they're looking the  wrong way.  
1991-20	1991	Tonight, I come before this house, and the American people, with an appeal  for renewal. This is not merely a call for new government initiatives, it  is a call for new initiative in government, in our communities, and from  every American--to prepare for the next American century.  
1991-21	1991	America has always led by example. So who among us will set this example?  Which of our citizens will lead us in this next American century? Everyone  who steps forward today, to get one addict off drugs; to convince one  troubled teen-ager not to give up on life; to comfort one AIDS patient; to  help one hungry child.  
1991-22	1991	We have within our reach the promise of renewed America. We can find  meaning and reward by serving some purpose higher than ourselves--a  shining purpose, the illumination of a thousand points of light. It is  expressed by all who know the irresistible force of a child's hand, of a  friend who stands by you and stays there--a volunteer's generous gesture,  an idea that is simply right.  
1991-23	1991	The problems before us may be different, but the key to solving them  remains the same: it is the individual--the individual who steps forward.  And the state of our Union is the union of each of us, one to the other:  the sum of our friendships, marriages, families and communities.  
1991-24	1991	We all have something to give. So if you know how to read, find someone who  can't. If you've got a hammer, find a nail. If you're not hungry, not  lonely, not in trouble--seek out someone who is.  
1991-25	1991	Join the community of conscience. Do the hard work of freedom. That will  define the state of our Union.  
1991-26	1991	Since the birth of our nation, "we the people" has been the source of our  strength. What government can do alone is limited, but the potential of the  American people knows no limits.  
1991-27	1991	We are a nation of rock-solid realism and clear-eyed idealism. We are  Americans. We are the nation that believes in the future. We are the nation  that can shape the future.  
1991-28	1991	And we've begun to do just that, by strengthening the power and choice of  individuals and families.  
1991-29	1991	Together, these last two years, we've put dollars for child care directly  in the hands of patients instead of bureaucracies, unshackled the potential  of Americans with disabilities, applied the creativity of the marketplace in  the service of the environment, for clean air, and made homeownership  possible for more Americans.  
1991-30	1991	The strength of a democracy is not in bureaucracy, it is in the people and  their communities. In everything we do, let us unleash the potential of our  most precious resource--our citizens. We must return to families,  communities, counties, cities, states and institutions of every kind, the  power to chart their own destiny, and the freedom and opportunity provided  by strong economic growth. That's what America is all about.  
1991-31	1991	I know, tonight, in some regions of our country, people are in genuine  economic distress. I hear them.  
1991-32	1991	Earlier this month Kathy Blackwell of Massachusetts wrote me about what can  happen when the economy slows down, saying, "My heart is aching, and I  think that you should know--your people out here are hurting badly."  
1991-33	1991	I understand. And I'm not unrealistic about the future. But there are  reasons to be optimistic about our economy.  
1991-34	1991	First, we don't have to fight double-digit inflation. Second, most  industries won't have to make big cuts in production because they don't  have big inventories piled up. And third, our exports are running solid and  strong. In fact, American businesses are exporting at a record rate.  
1991-35	1991	So let's put these times in perspective. Together, since 1981, we've  created almost 20 million jobs, cut inflation in half and cut interest  rates in half.  
1991-36	1991	Yes, the largest peacetime economic expansion in history has been  temporarily interrupted. But our economy is still over twice as large as  our closest competitor.  
1991-37	1991	We will get this recession behind us and return to growth soon. We will get  on our way to a new record of expansion, and achieve the competitive  strength that will carry us into the next American century.  
1991-38	1991	We should focus our efforts today on encouraging economic growth, investing  in the future and giving power and opportunity to the individual.  
1991-39	1991	We must begin with control of Federal spending. That's why I'm submitting a  budget that holds the growth in spending to less than the rate of  inflation. And that's why, amid all the sound and fury of last year's  budget debate, we put into law new, enforceable spending caps so that  future spending debates will mean a battle of ideas, not a bidding war.  
1991-40	1991	Though controversial, the budget agreement finally put the Federal  Government on a pay-as-you-go basis, and cut the growth of debt by nearly  $500 billion. And that frees funds for saving and job-creating investment.  
1991-41	1991	Now, let's do more. My budget again includes tax-free family savings  accounts; penalty-free withdrawals from I. R. A.'s for first-time  homebuyers; and, to increase jobs and growth, a reduced tax for long-term  capital gains.  
1991-42	1991	I know their are differences among us about the impact and the effects of a  capital gains incentive. So tonight I am asking the Congressional leaders  and the Federal Reserve to cooperate with us in a study, led by Chairman  Alan Greenspan, to sort out our technical differences so that we can avoid  a return to unproductive partisan bickering.  
1991-43	1991	But just as our efforts will bring economic growth now and in the future,  they must also be matched by long-term investments for the next American  century.  
1991-44	1991	That requires a forward-looking plan of action, and that's exactly what we  will be sending to the Congress. We have prepared a detailed series of  proposals, that include: A budget that promotes investment in America's  future--in children, education, infrastructure, space and high technology.  Legislation to achieve excellence in education, building on the partnership  forged with the 50 governors at the education summit, enabling parents to  choose their children's schools and helping to make America No. 1 in math  and science. A blueprint for a new national highway system, a critical  investment in our transportation infrastructure. A research and development  agenda that includes record levels of Federal investment and a permanent  tax credit to strengthen private R and D and create jobs. A comprehensive  national energy strategy that calls for energy conservation and efficiency,  increased development and greater use of alternative fuels. A banking  reform plan to bring America's financial system into the 21st Century, so  that our banks remain safe and secure and can continue to make job-creating  loans for our factories, businesses, and homebuyers. I do think there has  been too much pessimism. Sound banks should be making more sound loans,  now. And interest rates should be lower, now. In addition to these  proposals, we must recognize that our economic strength depends upon being  competitive in world markets. We must continue to expand America's exports.  A successful Uruguay Round of world trade negotiations will create more  real jobs, and more real growth, for all nations. You and I know that if  the playing field is level, America's workers and farmers can outwork and  outproduce anyone, anytime, anywhere.  
1991-45	1991	And with the Mexican free trade agreement and our Enterprise for the  Americas Initiative we can help our partners strengthen their economies and  move toward a free trade zone throughout this entire hemisphere.  
1991-46	1991	The budget also includes a plan of action right here at home to put more  power and opportunity in the hands of the individual. That means new  incentives to create jobs in our inner cities by encouraging investment  through enterprise zones. It also means tenant control and ownership of  public housing. Freedom and the power to choose should not be the privilege  of wealth. They are the birthright of every American.  
1991-47	1991	Civil rights are also crucial to protecting equal opportunity. Every one of  us has a responsibility to speak out against racism, bigotry, and hate. We  will continue our vigorous enforcement of existing statutes, and I will once  again press the Congress to strengthen the laws against employment  discrimination without resorting to the use of unfair preferences.  
1991-48	1991	We're determined to protect another fundamental civil right: freedom from  crime and the fear that stalks our cities. The Attorney General will soon  convene a crime summit of the nation's law-enforcement officials. And to  help us support them we need a tough crime control legislation, and we need  it now.  
1991-49	1991	As we fight crime, we will fully implement our nation strategy for  combatting drug abuse. Recent data show we are making progress, but much  remains to be done. We will not rest until the day of the dealer is over,  forever.  
1991-50	1991	Good health care is every American's right and every American's  responsibility. So we are proposing an aggression program of new prevention  initiatives--for infants, for children, for adults, and for the elderly--  to promote a healthier America and to help keep costs from spiraling.  
1991-51	1991	It's time to give people more choice in government by reviving the ideal of  the citizen politician who comes not to stay, but to serve. One of the  reasons there is so much support for term limitations is that the American  people are increasingly concerned about big-money influence in politics.  We must look beyond the next election, to the next generation. The time has  come to put the national interest ahead of the special interest--and  totally eliminate political action committees.  
1991-52	1991	That would truly put more competition in elections and more power in the  hands of individuals. And where power cannot be put directly into the hands  of the individual, it should be moved closer to the people--away from  Washington.  
1991-53	1991	The federal government too often treats government programs as if they are  of Washington, by Washington, and for Washington. Once established, federal  programs seem to become immortal.  
1991-54	1991	It's time for a more dynamic program life cycle. Some programs should  increase. Some should decrease. Some should be terminated. And some should  be consolidated and turned over to the states.  
1991-55	1991	My budget includes a list of programs for potential turnover totaling more  than $20 billion. Working with Congress and the governors, I propose we  select at least $15 billion in such programs and turn them over to the  states in a single consolidated grant, fully funded, for flexible  management by the states.  
1991-56	1991	The value of this turnover approach is straightforward. It allows the  Federal Government to reduce overhead. It allows states to manage more  flexibly and more efficiently. It moves power and decision-making closer to  the people. And it re-enforces a theme of this Administration: appreciation  and encouragement of the innovative power of "states as laboratories."  
1991-57	1991	This nation was founded by leaders who understood that power belongs in the  hands of the people. They planned for the future. And so must we--here and  around the world.  
1991-58	1991	As Americans, we know there are times when we must step forward and accept  our responsibility to lead the world away from the dark chaos of dictators,  toward the bright promise of a better day.  
1991-59	1991	Almost 50 years ago, we began a long struggle against aggressive  totalitarianism. Now we face another defining hour for America and the  world.  
1991-60	1991	There is no one more devoted, more committed to the hard work of freedom,  than every soldier and sailor, every marine, airman and coastguardsman--  every man and every woman now serving in the Persian Gulf.  
1991-61	1991	Each of them has volunteered to provide for this nation's defense. And now  they bravely struggle to earn for America and for the world and for future  generations, a just and lasting peace.  
1991-62	1991	Our commitment to them must be equal of their commitment to our country.  They are truly America's finest.  
1991-63	1991	The war in the gulf is not a war we wanted. We worked hard to avoid war.  For more than five months we, along with the Arab League, the European  Community and the United Nations, tried every diplomatic avenue. U.N.  Secretary General Perez de Cuellar; Presidents Gorbachev, Mitterand, Ozal,  Mubarak, and Bendjedid; Kings Fahd and Hassan; Prime Ministers Major and  Andreotti--just to name a few--all worked for a solution. But time and  again Saddam Hussein flatly rejected the path of diplomacy and peace.  
1991-64	1991	The world well knows how this conflict began, and when: it began on August  2nd, when Saddam invaded and sacked a small, defenseless neighbor. And I am  certain of how it will end. So that peace can prevail, we will prevail.  
1991-65	1991	Tonight I'm pleased to report that we are on course. Iraq's capacity to  sustain war is being destroyed. Our investment, our training, our planning  --all are paying off. Time will not be Saddam's salvation.  
1991-66	1991	Our purpose in the Persian Gulf remains constant: to drive Iraq out from  Kuwait, to restore Kuwait's legitimate government, and to insure the  stability and security of this critical region.  
1991-67	1991	Let me make clear what I mean by the region's stability and security. We do  not seek the destruction of Iraq, its culture or its people. Rather, we  seek an Iraq that uses its great resources not to destroy, not to serve the  ambitions of a tyrant, but to build a better life for itself and its  neighbors. We seek a Persian Gulf where conflict is no longer the rule,  where the strong are neither tempted nor able to intimidate the weak.  
1991-68	1991	Most Americans know instinctively why we are in the Gulf. They know we had  to stop Saddam now, not later. They know this brutal dictator will do  anything, will use any weapon, will commit any outrage, no matter how many  innocents must suffer.  
1991-69	1991	They know we must make sure that control of the world's oil resources does  not fall into his hands only to finance further aggression. They know that  we need to build a new, enduring peace--based not on arms races and  confrontation, but on shared principles and the rule of law.  
1991-70	1991	And we all realize that our responsibility to be the catalyst for peace in  the region does not end with the successful conclusion of this war.  
1991-71	1991	Democracy brings the undeniable value of thoughtful dissent, and we have  heard some dissenting voices here at home, some reckless, most responsible.  But the fact the all the voices have the right to speak out is one of the  reasons we've been united in principle and purpose for 200 years.  
1991-72	1991	Our progress in this great struggle is the result of years of vigilance and  a steadfast commitment to a strong defense. Now, with remarkable  technological advances like the Patriot missile, we can defend the  ballistic missile attacks aimed at innocent civilians.  
1991-73	1991	Looking forward, I have directed that the S.D.I. program be refocused on  providing protection from limited ballistic missile strikes, whatever their  source. Let us pursue an S.D.I. program that can deal with any future  threat to the United States, to our forces overseas and to our friends and  allies.  
1991-74	1991	The quality of American technology, thanks to the American worker, has  enabled us to successfully deal with difficult military conditions, and  help minimize the loss of life. We have given our men and women the very  best. And they deserve it.  
1991-75	1991	We all have a special place in our hearts for the families of men and women  serving in the Gulf. They are represented here tonight, by Mrs. Norman  Schwarzkopf, and to all those serving with him. And to the families, let me  say, our forces in the gulf will not stay there one day longer than is  necessary to complete their mission.  
1991-76	1991	The courage and success of the R.A.F. pilots--of the Kuwaiti, Saudi,  French, Canadians, Italians, the pilots of Qatar and Bahrain--all are  proof that for the first time since World War II, the international  community is united. The leadership of the United Nations, once only a  hoped-for ideal, is now confirming its founders' vision.  
1991-77	1991	I am heartened that we are not being asked to bear alone the financial  burden of this struggle. Last year, our friends and allies provided the  bulk of the economic costs of Desert Shield, and having now received  commitments of over $40 billion for the first three months of 1991, I am  confident they will do no less as we move through Desert Storm.  
1991-78	1991	But the world has to wonder what the dictator of Iraq is thinking. If he  thinks that by targeting innocent civilians in Israel and Saudi Arabia,  that he will gain an advantage--he is dead wrong. If he thinks that he  will advance his cause through tragic and despicable environmental  terrorism--he is dead wrong. And if he thinks that by abusing coalition  P.O.W.s, he will benefit--he is dead wrong.  
1991-79	1991	We will succeed in the Gulf. And when we do, the world community will have  sent an enduring warning to any dictator or despot, present or future, who  contemplates outlaw aggression.  
1991-80	1991	The world can therefore seize this opportunity to fulfill the long-held  promise of a new world order--where brutality will go unrewarded, and  aggression will meet collective resistance.  
1991-81	1991	Yes, the United States bears a major share of leadership in this effort.  Among the nations of the world, only the United States of America has had  both the moral standing, and the means to back it up. We are the only  nation on this earth that could assemble the forces of peace.  
1991-82	1991	This is the burden of leadership--and the strength that has made America  the beacon of freedom in a searching world.  
1991-83	1991	This nation has never found glory in war. Our people have never wanted to  abandon the blessings of home and work, for distant lands and deadly  conflict. If we fight in anger, it is only because we have to fight at all.  And all of us yearn for a world where we will never have to fight again.  
1991-84	1991	Each of us will measure, within ourselves, the value of this great  struggle. Any cost in lives is beyond our power to measure. But the cost of  closing our eyes to aggression is beyond mankind's power to imagine.  
1991-85	1991	This we do know: Our cause is just. Our cause is moral. Our cause is  right.  
1991-86	1991	Let future generations understand the burden and the blessings of freedom.  Let them say, we stood where duty required us to stand.  
1991-87	1991	Let them know that together, we affirmed America, and the world, as a  community of conscience.  
1991-88	1991	The winds of change are with us now. The forces of freedom are united. We  move toward the next century, more confident than ever, that we have the  will at home and abroad, to do what must be done--the hard work of  freedom.  
1991-89	1991	May God bless the United States of America.  
1992-1	1992	Mr. Speaker, Mr. President, distinguished members of Congress, honored  guests and fellow citizens:  
1992-2	1992	I mean to speak tonight of big things, of big changes and the promises they  hold and of some big problems and how together we can solve them and move  our country forward as the undisputed leader of the age.  
1992-3	1992	We gather tonight at a dramatic and deeply promising time in our history,  and in the history of man on earth. For in the past 12 months, the world  has known changes of almost biblical proportions. And even now, months  after the failed coup that doomed a failed system, I am not sure we have  absorbed the full impact, the full import of what happened.  
1992-4	1992	But Communism died this year. Even as President, with the most fascinating  possible vantage point, there were times when I was so busy helping to  manage progress and lead change that I didn't always show the joy that was  in my heart But the biggest thing that has happened in the world in my  life, in our lives, is this: By the grace of God, America won the Cold War.  And there's another to be singled out, though it may seem inelegant. I mean  a mass of people called the American taxpayer. No ever thinks to thank the  people who pay country's bill or an alliance's bill. But for a half Century  now, the American people have shouldered the burden and paid taxes that  were higher than they would have been to support a defense that was bigger  than it would have been if imperial communism had never existed. But it  did. But it doesn't anymore. And here is a fact I wouldn't mind the world  acknowledging: The American taxpayer bore the brunt of the burden, and  deserves a hunk of the glory.  
1992-5	1992	And so, now, for the first time in 35 years, our strategic bombers stand  down. No longer are they on round-the-clock alert. Tomorrow our children  will go to school and study history and how plants grow. And they won't  have, as my children did, air-raid drills in which they crawl under their  desks and cover their heads in case of nuclear war. My grandchildren don't  have to do that, and won't have the bad dreams children once had in decades  past. There are still threats. But the long drawn-out dread is over.  
1992-6	1992	A year ago tonight I spoke to you at a moment of high peril. American  forces had just unleashed Operation Desert Storm. And after 40 days in the  desert skies and 4 days on the ground, the men and women of America's armed  forces and our allies accomplished the goals that I declared, and that you  endorsed: we liberated Kuwait.  
1992-7	1992	Soon after, the Arab world and Israel sat down to talk seriously, and  comprehensively, about peace, an historic first. And soon after that, at  Christmas, the last American hostages came home. Our policies were  vindicated.  
1992-8	1992	Much good can come from the prudent use of power. And much good can come  from this: A world once divided into two armed camps now recognizes one  sole and pre-eminent power, the United States of America. And this they  regard with no dread. For the world trusts us with power, and the world is  right. They trust us to be fair, and restrained. They trust us to be on the  side of decency. They trust us to do what's right.  
1992-9	1992	I use those words advisedly. A few days after the war began, I received a  telegram from Joanne Speicher, the wife of the first pilot killed in the  gulf, Lieutenant Commander Scott Speicher. Even in her grief, she wanted me  to know that some day, when her children were old enough, she would tell  them "that their father went away to war because it was the right thing to  do". She said it all. It was the right thing to do.  
1992-10	1992	And we did it together. There were honest differences here, in this  chamber. But when the war began, you put your partisanship aside and  supported our troops. This is still a time for pride, but this is no time  to boast. For problems face us, and we must stand together once again and  solve them--and not let our country down.  
1992-11	1992	Two years ago, I began planning cuts in military spending that reflected  the changes of the new era. But now, this year, with Imperial Communism  gone, that process can be accelerated. Tonight I can tell you of dramatic  changes in our strategic nuclear force. These are actions we are taking on  our own, because they are the right thing to do.  
1992-12	1992	After completing 20 planes for which we have begun procurement, we will  shut down production of the B-2 bomber. We will cancel the ICBM program. We  will cease production of new warheads for our sea-based missiles. We will  stop all production of the peacekeeper missile. And we will not purchase  any more advanced cruise missiles.  
1992-13	1992	This weekend I will meet at Camp David with Boris Yeltsin of the Russian  Federation. I have informed President Yeltsin that if the commonwealth, the  former Soviet Union, will eliminate all land-based multiple-warhead  ballistic missiles, I will do the following: We will eliminate all  Peacekeeper missiles. We will reduce the number of warheads on Minuteman  missiles to one and reduce the number of warheads on our sea-based missiles  by about one-third. And we will convert a substantial portion of our  strategic to primarily conventional use.  
1992-14	1992	President Yeltsin's early response has been very positive, and I expect our  talks at Camp David to be fruitful. I want you to know that for half a  century, American presidents have longed to make such decisions and say  such words. But even in the midst of celebration, we must keep caution as a  friend. For the world is still a dangerous place. Only the dead have seen  the end of conflict. And though yesterday's challenges are behind us,  tomorrow's are being born.  
1992-15	1992	The Secretary of defense recommended these cuts after consultation with the  joint chiefs of staff. And I make them with confidence. But do not  misunderstand me: The reductions I have approved will save us an additional  $50 billion over the next five years. By 1997 we will have cut defense by  30 percent since I took office. These cuts are deep, and you must know my  resolve: this deep, and no deeper. To do less would be insensible to  progress, but to do more would be ignorant of history. We must not go back  to the days of "the hollow army". We cannot repeat the mistakes made twice  in this century when armistice was followed by recklessness and defense was  purged as if the world was permanently safe.  
1992-16	1992	I remind you this evening that I have asked for your support in funding a  program to protect our country from limited nuclear missile attack. We must  have this protection because too many people in too many countries have  access to nuclear arms. There are those who say that now we can turn away  from the world, that we have no special role, no special place. But we are  the United States of America, the leader of the West that has become the  leader of the world.  
1992-17	1992	As long as I am President we will continue to lead in support of freedom  everywhere, not out of arrogance and not out of altruism, but for the  safety and security of our children. This is a fact: Strength in the  pursuit of peace is no vice; isolationism in the pursuit of security is no  virtue.  
1992-18	1992	Now to our troubles at home. They are not all economic, but the primary  problem is our economy. There are some good signs. Inflation, that thief,  is down, and interest rates are down. But unemployment is too high, some  industries are in trouble and growth is not what it should be. Let me tell  you right from the start and right from the heart: I know we're in hard  times, but I know something else: This will not stand.  
1992-19	1992	My friends in this chamber, we can bring the same courage and sense of  common purpose to the economy that we brought to Desert Storm. And we can  defeat hard times together. I believe you will help. One reason is that  you're patriots, and you want the best for your country. And I believe that  in your hearts you want to put partisanship aside and get the job done,  because it's the right thing to do.  
1992-20	1992	The power of America rests in a stirring but simple idea: that people will  do great things if only you set them free. Well, we're going to have to set  the economy free, for if this age of miracles and wonders has taught us  anything, it's that if we can change the world, we can change America.  
1992-21	1992	We must encourage investment. We must make it easier for people to invest  money and make new products, new industries, and new jobs. We must clear  away obstacles to new growth: high taxes, high regulation, red tape, and  yes, wasteful government spending. None of this will happen with a snap of  the fingers, but it will happen. And the test of a plan isn't whether it's  called new or dazzling. The American people aren't impressed by gimmicks.  They're smarter on this score than all of us in this room. The only test of  a plan is, It is sound and will it work? We must have a short-term plan to  address our immediate needs and heat up the economy. And then we need a  long-term plan to keep the combustion going and to guarantee our place in  the world economy.  
1992-22	1992	There are certain things that a president can do without Congress, and I am  going to do them. I have this evening asked major cabinet departments and  federal agencies to institute a 90-day moratorium on any new federal  regulations that could hinder growth. In those 90 days, major departments  and agencies will carry out a top-to-bottom review of all regulations, old  and new, to stop the ones that will hurt growth and speed up those that  will help growth.  
1992-23	1992	Further, for the untold number of hard-working, responsible American  workers and businessmen and women who've been forced to go without needed  bank loans, the banking credit crunch must end. I won't neglect my  responsibility for sound regulations that serve the public good, but  regulatory overkill must be stopped. And I have instructed our government  regulators to stop it.  
1992-24	1992	I have directed Cabinet departments and federal agencies to speed up  pro-growth expenditures as quickly as possible. This should put an extra  $10 billion into the economy in the next six months. And our new  transportation bill provides more than $150 billion for construction and  maintenance projects that are vital to our growth and well-being. That  means jobs building roads, jobs building bridges and jobs building  railways. And I have this evening directed the secretary of the Treasury to  change the federal tax withholding tables. With this change, millions of  Americans from whom the government withholds more than necessary can now  choose to have the government withhold less from their paychecks. Something  tells me a number of taxpayers may take us up on this one. This initiative  could return about $25 billion back into the economy over the next 12  months, money people can use to help pay for clothing, college or a new  car. And finally, working with the Federal Reserve, we will continue to  support monetary policy that keeps both interest rates and inflation down.  
1992-25	1992	Now these are the things that I can do. And now, members of Congress, let  me tell you what you can do for your country. You must, you must pass the  other elements of my plan to meet our economic needs. Everyone knows  investment speeds recovery. And I am proposing this evening a change in the  alternative minimum tax, and the creation of a new 15% investment tax  allowance. This will encourage businesses to accelerate investment and  bring people back to work. Real estate has led our economy out of almost  all the tough times we've ever had. Once building starts, carpenters and  plumbers work, people buy homes and take out mortgages.  
1992-26	1992	My plan would modify the passive-loss rule for active real-estate  developers. And it would make it easier for pension plans to purchase real  estate. For those Americans who dream of buying a first home but who can't  quite afford it, my plan would allow first-time home buyers to withdraw  savings from IRAs without penalty and provide a $5000 tax credit for the  first purchase of that home.  
1992-27	1992	And finally, my immediate plan calls on Congress to give crucial help to  people who own a home, to every one who has a business, a farm or a single  investment.  
1992-28	1992	This time, at this hour, I cannot take "No" for an answer. You must cut the  capital gains tax on the people of this country. Never has an issue been so  demagogued by its opponents. But the demagogues are wrong. They are wrong,  and they know it. Sixty percent of people who benefit from lower capital  gains have incomes under $50,000. A cut in the capital gains tax increases  jobs and helps just about everyone in our country. And so I'm asking you to  cut the capital gains tax to a maximum of 15.4%. And I'll tell you, I'll  tell you, those of you who say, "Oh no, someone who's comfortable may  benefit from this" you kind of remind me of the old definition of the  Puritan, who couldn't sleep at night worrying that somehow someone  somewhere was out having a good time.  
1992-29	1992	The opponents of this measure and those who've authored various so-called  soak-the-rich bills that are floating around this chamber should be  reminded of something: When they aim at the big guy, they usually hit the  little guy. And maybe it's time that stopped.  
1992-30	1992	This then is my short-term plan. Your part, members of Congress, requires  enactment of these common-sense proposals that will have a strong effect on  the economy, without breaking the budget agreement and without raising tax  rates. And while my plan is being passed and kicking in, we've got to care  for those in trouble today. I have provided for up to $4.4 billion in my  budget to extend federal unemployment benefits, and I ask for Congressional  action right away. And I thank the committee--well, at last. And let's be  frank. Let's be frank; let me level with you.  
1992-31	1992	I know, and you know, that my plan is unveiled in a political season. I  know, and you know, that everything I propose will be viewed by some in  merely partisan terms. But I ask you to know what is in my heart. And my  aim is to increase our nation's good. And I'm doing what I think is right;  I'm proposing what I know will help. I pride myself that I'm a prudent man,  and I believe that patience is a virtue, but I understand politics is, for  some, a game and that sometimes the game is to stop all progress and then  decry the lack of improvement. But let me tell you, let me tell you, far  more important than my political future--and far more important than  yours--is the well-being of our country. And members of this chamber,  members of this chamber, are practical people, and I know you won't resent  some practical advice: When people put their party's fortunes, whatever the  party, whatever the side of this aisle, before the public good, they court  defeat not only for their country, but for themselves. And they will  certainly deserve it.  
1992-32	1992	And I submit my plan tomorrow. And I am asking you to pass it by March 20.  From the day after that--if it must be--the battle is joined. And you  know, when principle is at stake, I relish a good fair fight.  
1992-33	1992	I said my plan has two parts, and it does. And it's the second part that is  the heart of the matter. For it's not enough to get an immediate burst. We  need long-term improvement in our economic position. We all know that the  key to our economic future is to insure that America continues as the  economic leader of the world. We have that in our power. Here, then, is my  long-term plan to guarantee our future.  
1992-34	1992	First, trade: We will work to break down the walls that stop world trade.  We will work to open markets everywhere. And in our major trade  negotiations, I will continue pushing to eliminate tariffs and subsidies  that damage America's farmers and workers. And we'll get more good American  jobs within our own hemisphere through the North American Free Trade  Agreement, and through the Enterprise for the Americas Initiative. But  changes are here, and more are coming. The work place of the future will  demand more highly skilled workers than ever, people who are computer  literate, highly educated.  
1992-35	1992	And we must be the world's leader in education. And we must revolutionize  America's schools. My America 2000 strategy will help us reach that goal.  My plan will give parents more choice, give teachers more flexibility and  help communities create new American schools. Thirty states across the  nation have established America 2000 programs. Hundreds of cities and towns  have joined. Now Congress must join this great movement. Pass my proposals  for new American schools.  
1992-36	1992	That was my second long-term proposal. And here's my third: We must make  common-sense investments that will help us compete, long-term, in the  marketplace. We must encourage research and development. My plan is to make  the R and D tax credit permanent, and to provide record levels of support,  over $76 billion this year alone for people who explore the promise of  emerging technologies.  
1992-37	1992	And fourth, we must do something about crime and drugs. And it is time for  a major renewed investment in fighting violent street crime. Its saps our  strength and hurts our faith in our society, and in our future together.  Surely a tired woman on her way to work at six in the morning on a subway  deserves the right to get there safely. And surely, it's true that everyone  who changes his or her way of life because of crime--from those afraid to  go our at night to those afraid to walk in the parks they pay for--surely  those people have been denied a basic civil right. It is time to restore  it. Congress, pass my comprehensive crime bill. It is tough on criminals  and supportive of police, and it has been languishing in these hallowed  halls for years now. Pass it. Help your country.  
1992-38	1992	And fifth, I ask you tonight to fund our HOPE housing proposal and to pass  my enterprise-zone legislation, which will get businesses into the inner  city. We must empower the poor with the pride that comes from owning a  home, getting a job, becoming part of things. My plan would encourage real  estate construction by extending tax incentives for mortgage-revenue bonds  and low-income housing. And I ask tonight for record expenditures for the  program that helps children born into want move into excellence: Head  Start.  
1992-39	1992	Step six: We must reform our health care system for this too, bears on  whether or not we can compete in the world. American health costs have been  exploding. This year America will spend over $800 billion on health, and  that is expected to grow to $1.6 trillion by the end of the decade. We  simply cannot afford this. The cost of health care shows up not only in  your family budget, but in the price of everything we buy and everything we  sell. When health coverage for a fellow on the assembly line costs  thousands of dollars, the cost goes into the product he makes. And you pay  the bill. Now we must make a choice.  
1992-40	1992	Now some pretend we can have it both ways: they call it play or pay. But  that expensive approach is unstable. It will mean higher taxes, fewer jobs,  and eventually, a system under complete government control. Really, there  are only two options. And we can move toward a nationalized system, a  system which will restrict patient choice in picking a doctor and force the  government to ration services arbitrarily. And what we'll get is patients  in long lines, indifferent service and a huge new tax burden. Or we can  reform our own private health-care system, which still gives us, for all  its flaws, the best quality health care in the world. Well, let's build on  our strengths.  
1992-41	1992	My plan provides insurance security for all Americans while preserving and  increasing the idea of choice. We make basic health insurance affordable  for all low-income people not now covered. We do it by providing a  health-insurance tax credit of up to $3750 for each low-income family. The  middle class gets help, too. And by reforming the health insurance market,  my plan assures that Americans will have access to basic health insurance  even if they change jobs or develop serious health problem We must bring  costs under control, preserve quality, preserve choice and reduce people's  nagging daily worry about health insurance. My plan, the details of which I  will announce shortly, does just that.  
1992-42	1992	And seventh, we must get the federal deficit under control. We now have in  law, enforcable spending caps, and a requirement that we pay for the  programs we create. There are those in Congress who would ease that  discipline now. But I cannot let them do it. And I won't. My plan would  freeze all domestic discretionary budget authority which means "No more  next year than this year". I will not tamper with Social Security but I  would put real caps on the growth of uncontrolled spending. And I would  also freeze federal domestic government employment. And with the help of  Congress, my plan will get rid of 246 programs that don't deserve federal  funding. Some of them have noble titles, but none of them is indispensible.  We can get rid of each and every one of them.  
1992-43	1992	You know, it's time we rediscovered a home truth the American people have  never forgotten: the government is too big and spends too much. And I call  on Congress to adopt a measure that will help put an end to the annual  ritual of filling the budget with pork-barrel appropriations. Every year,  the press has a field day making fun of outrageous examples, a Lawrence  Welk Museum, a research grant for Belgian Endive. We all know how these  things get into the budget, and maybe you need someone to help you say no.  I know how to say it. And you know what I need to make it stick. Give me  the same thing 43 governors have--the line-item veto--and let me help  you control spending.  
1992-44	1992	We must put an end to unfinanced government mandates. These are the  requirements Congress puts on our cities, counties and states without  supplying the money. And if Congress passes a mandate, it should be forced  to pay for it and balance the cost with savings elsewhere. After all, a  mandate just increases someone else's tax burden, and that means higher  taxes at the state and local level.  
1992-45	1992	Step Eight: Congress should enact the bold reform proposals that are still  awaiting congressional action: bank reform, civil justice reform, tort  reform, and my national energy strategy.  
1992-46	1992	And finally, we must strengthen the family, because it is the family that  has the greatest bearing on our future. When Barbara holds an AIDS baby in  her arms and reads to children, she's saying to every person in this  country, "Family Matters".  
1992-47	1992	And I am announcing tonight a new commission on America's urban families.  I've asked Missouri's governor, John Ashcroft, to be chairman, former  Dallas Mayor Annetter Strauss to be co-chair. You know, I had Mayors, the  leading mayors from the League of Cities, in the other day at the White  House, and they told me something striking. They said that every one of  them, Republican and Democrat, agreed on one thing: That the major cause of  the problems of the cities is the dissolution of the family. And they asked  for this commission, and they were right to ask, because it's time to  determine what we can do to keep families together, strong and sound.  
1992-48	1992	There's one thing we can do right away: Ease the burden of rearing a child.  I ask you tonight to raise the personal exemption by $500 per child for  every family. For a family with four kids, that's an increase of $2000.  This is a good start in the right direction, and it's what we can afford.  It's time to allow families to deduct the interest they pay on student  loans. And I'm asking you to do just that. And I'm asking you to allow  people to use money from their IRAs to pay medical and educational  expenses, all without penalties. And I'm asking for more. Ask American  parents what they dislike about how things are going in our country, and  chances are good that pretty soon they'll get to welfare.  
1992-49	1992	Americans are the most generous people on Earth. But we have to go back to  the insight of Franklin Roosevelt who, when he spoke of what became the  welfare program, want that it must not become a narcotic and a subtle  destroyer of the spirit. Welfare was never meant to be a life style. It was  never meant to be a habit. It was never supposed to be passed on from  generation to generation like a legacy. It's time to replace the  assumptions of the welfare state and help reform the welfare system.  
1992-50	1992	States throughout the country are beginning to operate with new  assumptions: that when able-bodied people receive government assistance  they have responsibilities to the taxpayer. A responsibility to seek work,  education, or job training. A responsibility to get their lives in order. A  responsibility to hold their families together and refrain from having  children out of wedlock. And a responsibility to obey the law. We are going  to help this movement. Often, state reform requires waiving certain federal  regulations. I will act to make that process easier and quicker for every  state that asks our help. And I want to add, as we make these changes, we  work together to improve this system, that our intention is not  scapegoating and finger-pointing. If you read the papers or watch TV you  know there's been a rise these days in a certain kind of ugliness: racist  comments, anti-Semitism, an increased sense of division. Really, this is  not us. This is not who we are. And this is not acceptable.  
1992-51	1992	And so you have my plan for America. And I am asking for big things, but I  believe in my heart you will do what's right.  
1992-52	1992	And you know, it's kind of an American tradition to show a certain  skepticism toward our democratic institutions. I myself have sometimes  thought the aging process could be delayed if it had to make its way  through Congress. But you will deliberate, and you will discuss, and that  is fine. But my friends the people cannot wait. They need help now. And  there's a mood among us. People are worried. There has been talk of  decline. Someone even said our workers are lazy and uninspired. And I  thought, "Really? Go tell Neil Armstrong standing on the moon. Tell the  American farmer who feeds his country and the world. Tell the men and women  of Desert Storm." Moods come and go, but greatness endures. Our does.  
1992-53	1992	And maybe for a moment it's good to remember what, in the dailyness of our  lives, we forget. We are still and ever the freest nation on Earth, the  kindest nation on Earth, the strongest nation on Earth. And we have always  risen to the occasion. And we are going to lift this nation out of hard  times inch by inch and day by day, and those who would stop us better step  aside. Because I look at hard times and I make this vow: This will not  stand. And so we move on, together, a rising nation, the once and future  miracle that is still, this night, the hope of the world.  
1994-1	1994	Mr. Speaker, Mr. President, members of the 103rd Congress, my fellow  Americans:  
1994-2	1994	I am not sure what speech is in the TelePrompTer tonight, but I hope we can  talk about the State of the Union.  
1994-3	1994	I ask you to begin by recalling the memory of the giant who presided over  this chamber with such force and grace. Tip O'Neill liked to call himself  "A Man of the House" and he surely was that. But even more, he was a man of  the people, a bricklayer's son who helped to build the great American  middle class. Tip O'Neill never forgot who he was, where he came from, or  who sent him here. Tonight he's smiling down on us for the first time from  the Lord's gallery. But in his honor, may we too also remember who we are,  where we come from, and who sent us here.  
1994-4	1994	If we do that we will return over and over again to the principle that if  we simply give ordinary people equal opportunity, quality education, and a  fair shot at the American dream, they will do extraordinary things.  
1994-5	1994	We gather tonight in a world of changes so profound and rapid that all  nations are tested. Our American heritage has always been to master such  change, to use it to expand opportunity at home, and our leadership abroad.  But for too long and in too many ways, that heritage was abandoned, and our  country drifted.  
1994-6	1994	For 30 years family life in America has been breaking down. For 20 years  the wages of working people have been stagnant or declining. For the 12  years of trickle down economics we built a false prosperity on a hollow  base as our national debt quadrupled. From 1989 to 1992 we experienced the  slowest growth in a half century. For too many families, even when both  parents were working, the American dream has been slipping away.  
1994-7	1994	In 1992 the American people demanded that we change. I year ago I asked all  of you to join me in accepting responsibility for the future of our  country.  
1994-8	1994	Well, we did. We replaced drift and deadlock with renewal and reform. And I  want to thank every one of you here who heard the American people, who  broke gridlock, who gave them the most successful teamwork between a  president and a Congress in 30 years.  
1994-9	1994	Accomplishments  
1994-10	1994	This Congress produced a budget that cut the deficit by half a trillion  dollars, cut spending and raised income taxes on only the wealthiest  Americans. This Congress produced tax relief for millions of low-income  workers to reward work over welfare. It produced NAFTA. It produced the  Brady bill, now the Brady law.  
1994-11	1994	And thank you, Jim Brady, for being here, and God bless you, Sarah. This  Congress produced tax cuts to reduce the taxes of nine out of 10 small  businesses who use the money to invest more and create more jobs. It  produced more research and treatment for AIDS, more childhood  immunizations, more support for women's health research, more affordable  college loans for the middle class, a new national service program for  those who want to give something back to their country and their  communities for higher education, a dramatic increase in high-tech  investments to move us from a defense to a domestic high-tech economy. This  Congress produced a new law--the motor voter bill--to help millions of  people register to vote. It produced family and medical leave--all passed,  all signed into law, with not one single veto.  
1994-12	1994	These accomplishments were all commitments I made when I sought this  office, and in fairness, they all had to be passed by you in this Congress.  But I am persuaded that the real credit belongs to the people who sent us  here, who pay our salaries, who hold our feet to the fire. But what we do  here is really beginning to change lives. Let me just give you one  example.  
1994-13	1994	Family And Medical Leave  
1994-14	1994	I will never forget what the family and medical leave law meant to just one  father I met early one Sunday morning in the White House. It was unusual to  see a family there touring early Sunday morning, but he had his wife and  his three children there, one of them in a wheelchair. And I came up, and  after we had our picture taken and had a little visit, I was walking off,  and that man grabbed me by the arm and he said, "Mr. President, let me tell  you something. My little girl here is desperately ill. She's probably not  going to make it. But because of the family leave law, I was able to take  time off to spend with her, the most important I ever spent in my life,  without losing my job and hurting the rest of my family. It means more to  me than I will ever be able to say. Don't you people up here ever think  what you do doesn't make a difference. It does."  
1994-15	1994	Though we are making a difference, our work has just begun. Many Americans  still haven't felt the impact of what we've done. The recovery still hasn't  touched every community or created enough jobs. Incomes are still stagnant.  There's still too much violence and not enough hope in too many places.  
1994-16	1994	Abroad, the young democracies we are strongly supporting still face very  difficult times and look to us for leadership.  
1994-17	1994	And so tonight, let us resolve to continue the journey of renewal, to  create more and better jobs, to guarantee health security for all, to  reward welfare--work over welfare, to promote democracy abroad and to  begin to reclaim our streets from violent crime and drugs and gangs to  renew our own American community.  
1994-18	1994	Deficit Reduction  
1994-19	1994	Last year, we began to put our house in order by tackling the budget  deficit that was driving us toward bankruptcy. We cut $255 billion in  spending, including entitlements, in over 340 separate budget items. We  froze domestic spending and used honest budget numbers.  
1994-20	1994	Led by the vice president, we've launched a campaign to reinvent  government. We've cut staff, cut perks, even trimmed the fleet of federal  limousines. After years of leaders whose rhetoric attacked bureaucracy but  whose actions expanded it, we will actually reduce it by 252,000 people  over the next five years. By the time we have finished, the federal  bureaucracy will be at its lowest point in 30 years.  
1994-21	1994	Because the deficit was so large and because they benefited from tax cuts  in the 1980s, we did ask the wealthiest Americans to pay more to reduce the  deficit. So on April the 15th, the American people will discover the truth  about what we did last year on taxes. Only the top one--the top 1.2  percent of Americans, as I said all along, will face higher income tax  rates--let me repeat, only the wealthiest 1.2 percent of Americans will  face higher income tax rates and no one else will, and that is the truth.  Of course, there were, as there always are in politics, naysayers who said  this plan wouldn't work, but they were wrong. When I became president, the  experts predicted that next year's deficit would be $300 billion, but  because we acted, those same people now say the deficit's going to be under  $180 billion, 40 percent lower than was previously predicted.  
1994-22	1994	The Economy  
1994-23	1994	Our economic program has helped to produce the lowest core inflation rate  and the lowest interest rates in 20 years, and because those interest rates  are down, business investment and equipment is growing at seven times the  rate of the previous four years. Auto sales are way up, home sales at a  record high. Millions of Americans have refinanced their homes and our  economy has produced 1.6 million private-sector jobs in 1993, more than  were created in the previous four years combined.  
1994-24	1994	The people who supported this economic plan should be proud of its early  results--proud. But everyone in this chamber should know and acknowledge  that there is more to do. Next month I will send you one of the toughest  budgets ever presented to Congress. It will cut spending in more than 300  programs, eliminate 100 domestic programs, and reforms the way in which  governments buy goods and services.  
1994-25	1994	This year we must again make the hard choices to live within the hard  spending ceilings we have set. We must do it. We have proved we can bring  the deficit down without choking off recovery, without punishing seniors or  the middle class, and without putting our national security at risk. If you  will stick with this plan, we will post three consecutive years of  declining deficits for the first time since Harry Truman lived in the White  House. And once again, the buck stops here.  
1994-26	1994	Trade  
1994-27	1994	Our economic plan also bolsters our strength and our credibility around the  world. Once we reduced the deficit and put the steel back into our  competitive edge, the world echoed with the sound of falling trade  barriers. In one year, with NAFTA, with GATT, with our efforts in Asia and  the national export strategy, we did more to open world markets to American  products than at any time in the last two generations. That means more jobs  and rising living standards for the American people, low deficits, low  inflation, low interest rates, low trade barriers and high investments.  These are the building blocks of our recovery. But if we want to take full  advantage of the opportunities before us in the global economy, you all  know we must do more.  
1994-28	1994	As we reduce defense spending, I ask Congress to invest more in the  technologies of tomorrow. Defense conversion will keep us strong militarily  and create jobs for our people here at home.  
1994-29	1994	As we protect our environment, we must invest in the environmental  technologies of the future which will create jobs. This year we will fight  for a revitalized Clean Water Act and a Safe Drinking Water Act and a  reformed Superfund program.  
1994-30	1994	And the vice president is right; we must also work with the private sector  to connect every classroom, every clinic, every library, every hospital in  America into a national information superhighway by the year 2000. Think of  it. Instant access to information will increase productivity. It will help  to educate our children. It will provide better medical care. It will  create jobs. And I call on the Congress to pass legislation to establish  that information superhighway this year.  
1994-31	1994	As we expand opportunity and create jobs, no one can be left out. We must  continue to enforce fair lending and fair housing and all civil rights  laws, because America will never be complete in its renewal until everyone  shares in its bounty. But we all know, too, we can do all these things--  put our economic house in order, expand world trade, target the jobs of the  future, guarantee equal opportunity.  
1994-32	1994	But if we're honest, we'll all admit that this strategy still cannot work  unless we also give our people the education, training and skills they need  to seize the opportunities of tomorrow. We must set tough, world-class  academic and occupational standards for all our children and give our  teachers and students the tools they need to meet them.  
1994-33	1994	Education  
1994-34	1994	Our Goals 2000 proposal will empower individual school districts to  experiment with ideas like chartering their schools to be run by private  corporations or having more public school choice, to do whatever they wish  to do as long as we measure every school by one high standard: Are our  children learning what they need to know to compete and win in the global  economy?  
1994-35	1994	Goals 2000 links world-class standards to grassroots reforms and I hope  Congress will pass it without delay. Our school to work initiative will for  the first time link school to the world of work, providing at least one  year of apprenticeship beyond high school. After all, most of the people  we're counting on to build our economic future won't graduate from college.  It's time to stop ignoring them and start empowering them. We must  literally transform our outdated unemployment system into a new  reemployment system. The old unemployment system just sort of kept you  going while you waited for your old job to come back. We've got to have a  new system to move people into new and better jobs because most of those  old jobs just don't come back. And we know that the only way to have real  job security in the future, to get a good job with a growing income, is to  have real skills and the ability to learn new ones. So we've got to  streamline today's patchwork of training programs and make them a source of  new skill for our people who lose their jobs. Reemployment, not  unemployment, must become the centerpiece of our economic renewal. I urge  you to pass it in this session of Congress.  
1994-36	1994	Welfare  
1994-37	1994	And just as we must transform our unemployment system, so must we also  revolutionize our welfare system. It doesn't work; it defies our values as  a nation. If we value work, we can't justify a system that makes welfare  more attractive than work if people are worried about losing their health  care.  
1994-38	1994	If we value responsibility, we can't ignore the $34 billion in child  support absent parents out to be paying to millions of parents who are  taking care of their children--. If we value strong families, we can't  perpetuate a system that actually penalizes those who stay together. Can  you believe that a child who has a child gets more money from the  government for leaving home than for staying home with a parent or a  grandparent? That's not just bad policy, it's wrong and we ought to change  it.  
1994-39	1994	I worked on this problem for years before I became president, with other  governors and with members of Congress in both parties and with the  previous administration of another party. I worked on it with people who  were on welfare, lots of them. And I want to say something to everybody  here who cares about this issue. The people who most want to change this  system are the people who are dependent on it. They want to get off  welfare; they want to go back to work; they want to do right by their  kids.  
1994-40	1994	I once had a hearing when I was a governor and I brought in people on  welfare from all over America who had found their way to work and a woman  from my state who testified was asked this question. What's the best thing  about being off welfare and in a job. And without blinking an eye, she  looked at 40 governors and she said, when my boy goes to school and they  say "What does your mother do for a living?" he can give an answer. These  people want a better system and we ought to give it to them.  
1994-41	1994	Last year, we began this. We gave the states more power to innovate because  we know that a lot of great ideas come from outside Washington and many  states are already using it. Then this Congress took a dramatic step.  Instead of taxing people with modest incomes into poverty, we helped them  to work their way out of poverty by dramatically increasing the earned  income tax credit. It will lift 15 million working families out of poverty,  rewarding work over welfare, making it possible for people to be successful  workers and successful parents. Now that's real welfare reform.  
1994-42	1994	But there is more to be done. This spring I will send you a comprehensive  welfare reform bill that builds on the Family Support Act of 1988 and  restores the basic values of work and responsibility. We will say to  teenagers if you have a child out of wedlock, we'll no longer give you a  check to set up a separate household, we want families to stay together;  say to absent parents who aren't paying their child support if you're not  providing for your children we'll garnish your wages, suspend your license,  track you across state lines, and if necessary make some of you work off  what you owe.  
1994-43	1994	People who bring children into this world cannot and must not walk away  from them.  
1994-44	1994	But to all those who depend on welfare, we should offer ultimately a simple  compact. We will provide the support, the job training, the child care you  need for up to two years, but after that anyone who can work, must, in the  private sector wherever possible, in community service if necessary. That's  the only way we'll ever make welfare what it ought to be, a second chance,  not a way of life.  
1994-45	1994	I know it will be difficult to tackle welfare reform in 1994 at the same  time we tackle health care. But let me point out, I think it is inevitable  and imperative. It is estimated that one million people are on welfare  today because it's the only way they can get health care coverage for their  children. Those who choose to leave welfare for jobs without health  benefits, and many entry level jobs don't have health benefits, find  themselves in the incredible position of paying taxes that help to pay for  health care coverage for those who made the other choice, to stay on  welfare. No wonder people leave work and go back to welfare, to get health  care coverage. We've got to solve the health care problem to have real  welfare reform.  
1994-46	1994	Health Care Reform  
1994-47	1994	So this year we will make history by reforming the health care system. And  I would say to you, all of you my fellow public servants, this is another  issue where the people are way ahead of the politicians.  
1994-48	1994	That may not be popular with either party, but it happens to be the truth.  
1994-49	1994	You know, the first lady has received now almost a million letters from  people all across America and from all walks of life. I'd like to share  just one of them with you. Richard Anderson of Reno, Nevada, lost his job  and, with it, his health insurance. Two weeks later, his wife, Judy,  suffered a cerebral aneurysm. He rushed her to the hospital, where she  stayed in intensive care for 21 days. The Anderson's bills were over  $120,000. Although Judy recovered and Richard went back to work at $8 an  hour, the bills were too much for them and they were literally forced into  bankruptcy.  
1994-50	1994	"Mrs. Clinton," he wrote to Hillary, "no one in the United States of  America should have to lose everything they've worked for all their lives  because they were unfortunate enough to become ill." It was to help the  Richard and Judy Andersons of America that the first lady and so many  others have worked so hard and so long on this health care reform issue. We  owe them our thanks and our action.  
1994-51	1994	I know there are people here who say there's no health care crisis. Tell it  to Richard and Judy Anderson. Tell it to the 58 million Americans who have  no coverage at all for some time each year. Tell it to the 81 million  Americans with those preexisting conditions; those folks are paying more or  they can't get insurance at all or they can't ever change their jobs  because they or someone in their family has one of those preexisting  conditions. Tell it to the small businesses burdened by skyrocketing costs  of insurance. Most small businesses cover their employers, and they pay on  average 35 percent more in premiums than big businesses or government. Or  tell it to the 76 percent of insured Americans, three out of four whose  policies have lifetime limits, and that means they can find themselves  without any coverage at all just when they need it the most.  
1994-52	1994	So, if any of you believe there's no crisis, you tell it to those people,  because I can't.  
1994-53	1994	There are some people who literally do not understand the impact of this  problem on people's lives, but all you have to do is go out and listen to  them. Just go talk to them anywhere, in any congressional district in this  country. They're Republicans and Democrats and independents. It doesn't  have a lick to do with party. They think we don't get it, and it's time we  show that we do get it.  
1994-54	1994	From the day we began, our health care initiative has been designed to  strengthen what is good about our health care system--the world's best  health care professionals, cutting edge research, and wonderful research  institutions, Medicare for older Americans. None of this--none of it  should be put at risk. But we're paying more and more money for less and  less care. Every year, fewer and fewer Americans even get to choose their  doctors. Every year, doctors and nurses spend more time on paperwork and  less time with patients because of the absolute bureaucratic nightmare the  present system has become.  
1994-55	1994	This system is riddled with inefficiency, with abuse, with fraud, and  everybody knows it. In today's health care system, insurance companies call  the shots. They pick whom they cover and how they cover them. They can cut  off your benefits when you need your coverage the most. They are in  charge.  
1994-56	1994	What does it mean? It means every night millions of well-insured Americans  go to bed just an illness, an accident, or a pink slip away from having no  coverage or financial ruin. It means every morning millions of Americans go  to work without any health insurance at all--something the workers in no  other advanced country in the world do. It means that every year more and  more hard working people are told to pick a new doctor because their boss  has had to pick a new plan. And countless others turndown better jobs  because they know, if they take the better job, they'll lose their health  insurance.  
1994-57	1994	If we just let the health care system continue to drift, our country will  have people with less care, fewer choices, and higher bill.  
1994-58	1994	Now, our approach protects the quality of care and people's choices. It  builds on what works today in the private sector, to expand employer based  coverage, to guarantee private insurance for every American. And I might  say, employer based private insurance for every American was proposed 20  years ago by President Richard Nixon to the United States Congress. It was  a good idea then, and it's a better idea today.  
1994-59	1994	Why do we want guaranteed private insurance? Because right now, nine out of  ten people who have insurance get it through their employers--and that  should continue. And if your employer is providing good benefits at  reasonable prices, that should continue too. And that ought to make the  Congress and the president feel better. Our goal is health insurance  everybody can depend on--comprehensive benefits that cover preventive care  and prescription drugs, health premiums that don't just explode when you  get sick or you get older, the power--no matter how small your business is  --to choose dependable insurance at the same competitive rates that  governments and big business get today, one simple form for people who are  sick, and most of all, the freedom to choose a plan and the right to choose  your own doctor.  
1994-60	1994	Our approach protects older Americans. Every plan before the Congress  proposes to slow the growth of Medicare. The difference is this. We believe  those savings should be used to improve health care for senior citizens.  Medicare must be protected, and it should cover prescription drugs, and we  should take the first steps in covering long-term care.  
1994-61	1994	To those who would cut Medicare without protecting seniors, I say the  solution to today's squeeze on middle class working people's health care is  not to put the squeeze on middle class retired people's health care. We can  do better than that. When it's all said and done, it's pretty simple to me.  Insurance ought to mean what it used to mean. You pay a fair price for  security, and when you get sick, health care is always there--no matter  what.  
1994-62	1994	Along with the guarantee of health security, we all have to admit, too,  there must be more responsibility on the part of all of us in how we use  this system. People have to take their kids to get immunized. We should all  take advantage of preventive care. We must all work together to stop the  violence that explodes our emergency rooms. We have to practice better  health habits, and we can't abuse the system. And those who don't have  insurance under our approach will get coverage, but they will have to pay  something for it, too. The minority of businesses that provide no insurance  at all, and in so doing, shift the cost of the care of their employees to  others, should contribute something. People who smoke should pay more for a  pack of cigarettes. Everybody can contribute something if we want to solve  the health care crisis. There can't be anymore something for nothing. It  will not be easy, but it can be done. Now in the coming months I hope very  much to work with both Democrats and Republicans to reform a health care  system by using the market to bring down costs and to achieve lasting  health security. But if you look at history, we see that for 60 years this  country has tried to reform health care. President Roosevelt tried,  President Truman tried, President Nixon tried, President Carter tried.  Every time the special interests were powerful enough to defeat them, but  not this time.  
1994-63	1994	Campaign Finance Reform  
1994-64	1994	I know that facing up to these interests will require courage. It will  raise critical questions about the way we finance our campaigns and how  lobbyists yield their influence. The work of change, frankly, will never  get any easier until we limit the influence of well financed interests who  profit from this current system. So I also must now call on you to finish  the job both houses began last year, by passing tough and meaningful  campaign finance reform and lobby reform legislation this year.  
1994-65	1994	You know, my fellow Americans, this is really a test for all of us. The  American people provide those of us in government service with terrific  health care benefits at reasonable costs. We have health care that's always  there. I think we need to give every hard working, taxpaying American the  same health care security they have already given to us.  
1994-66	1994	I want to make this very clear: I am open, as I have said repeatedly, to  the best ideas of concerned members of both parties. I have no special  brief for any specific approach, even in our own bill, except this: if you  send me legislation that does not guarantee every American private health  insurance that can never be taken away, you will force me to take this pen,  veto the legislation, and we'll come right back here and start all over  again.  
1994-67	1994	But I don't think that's going to happen. I think we're ready to act now. I  believe that you're ready to act now. And if you're ready to guarantee  every American the same health care that you have, health care that can  never be taken away--now, not next year or the year after, now is the time  to stand with the people who sent us here. Now.  
1994-68	1994	Foreign Policy  
1994-69	1994	As we take these steps together to renew our strength at home, we cannot  turn away from our obligations to renew our leadership abroad. This is a  promising moment. Because of the agreements we have reached this year, last  year, Russia's strategic nuclear missiles soon will no longer be pointed at  the United States. Nor will we point ours at them.  
1994-70	1994	Instead of building weapons in space, Russian scientists will help us to  build the international space station.  
1994-71	1994	And of course there are still dangers in the world: rampant arms  proliferation, bitter regional conflicts, ethnic and nationalist tensions  in many new democracies, severe environmental degradation the world over,  and fanatics who seek to cripple the world's cities with terror. As the  world's greatest power, we must therefore maintain our defenses and our  responsibilities. This year we secured indictments against terrorists and  sanctions against those harbor them. We worked to promote  environmentally-sustainable economic growth. We achieved agreements with  Ukraine, with Belarus, with Kazakhstan, to eliminate completely their  nuclear arsenals. We are working to achieve a Korean Peninsula free of  nuclear weapons. We will seek early ratification of the treaty to ban  chemical weapons worldwide. And earlier today we joined with over 30  nations to begin negotiations on a comprehensive ban to stop all nuclear  testing.  
1994-72	1994	But nothing--nothing--is more important to our security than our nation's  armed forces. We honor their contributions, including those who are  carrying out the longest humanitarian airlift in history in Bosnia----  those who will complete their mission in Somalia this year and their brave  comrades who gave their lives there. Our forces are the finest military our  nation has ever had, and I have pledged that as long as I am president they  will remain the best-equipped, the best-trained and the best-prepared  fighting force on the face of the earth.  
1994-73	1994	Defense  
1994-74	1994	Last year, I proposed a defense plan that maintains our post-Cold War  security at a lower cost. This year, many people urged me to cut our  defense spending further to pay for other government programs. I said no.  The budget I send to Congress draws the line against further defense cuts.  It protects the readiness and quality of our forces. Ultimately, the best  strategy is to do that. We must not cut defense further. I hope the  Congress without regard to party will support that position.  
1994-75	1994	Ultimately, the best strategy to ensure our security and to build a durable  peace is to support the advance of democracy elsewhere. Democracies don't  attack each other. They make better trading partners and partners in  diplomacy. That is why we have supported, you and I, the democratic  reformers in Russia and in the other states of the former Soviet bloc. I  applaud the bipartisan support this Congress provided last year for our  initiatives to help Russia, Ukraine and the other states through their epic  transformations.  
1994-76	1994	Our support of reform must combine patience for the enormity of the task  and vigilance for our fundamental interest and values. We will continue to  urge Russia and the other states to press ahead with economic reforms, and  we will seek to cooperate with Russia to solve regional problems while  insisting that, if Russian troops operate in neighboring states, they do so  only when those states agree to their presence and in strict accord with  international standards.  
1994-77	1994	But we must also remember as these nations chart their own futures, and  they must chart their own futures, how much more secure and more prosperous  our own people will be if democratic and market reform succeed all across  the former communist bloc. Our policy has been to support that move and  that has been the policy of the Congress. We should continue it.  
1994-78	1994	Europe  
1994-79	1994	That is why I went to Europe earlier this month, to work with our European  partners to help to integrate all the former communist countries into a  Europe that has the possibility of becoming unified for the first time in  its entire history, it's entire history, based on the simple commitments of  all nations in Europe to democracy, to free markets, and to respect for  existing borders.  
1994-80	1994	With our allies, we have created a partnership for peace that invites  states from the former Soviet bloc and other non-NATO members to work with  NATO in military cooperation. When I met with Central Europe's leaders,  including Lech Walesa and Vaclav Havel, men who put their lives on the line  for freedom, I told them that the security of their region is important to  our country's security.  
1994-81	1994	This year, we must also do more to support democratic renewal and human  rights and sustainable development all around the world. We will ask  Congress to ratify the new GATT accord, we will continue standing by South  Africa as it works its way through its bold and hopeful and difficult  transition to democracy. We will convene a summit of the Western  hemisphere's democratic leaders from Canada to the tip of South America.  And we will continue to press for the restoration of true democracy in  Haiti.  
1994-82	1994	And as we build a more constructive relationship with China, we must  continue to insist on clear signs of improvement in that nation's human  rights record.  
1994-83	1994	Middle East  
1994-84	1994	We will also work for new progress toward the Middle East peace. Last year  the world watched Yitzhak Rabin and Yasir Arafat at the White House when  they had their historic handshake of reconciliation. But there is a long,  hard road ahead. And on that road I am determined that I and our  administration will do all we can to achieve a comprehensive and lasting  peace for all the peoples of the region.  
1994-85	1994	Now, there are some in our country who argue that with the Cold War,  America should turn its back on the rest of the world. Many around the  world were afraid we would do just that. But I took this office on a pledge  that had no partisan tinge to keep our nation secure by remaining engaged  in the rest of the world. And this year, because of our work together,  enacting NAFTA, keeping our military strong and prepared, supporting  democracy abroad, we have reaffirmed America's leadership, America's  engagement, and as a result, the American people are more secure than they  were before.  
1994-86	1994	Crime  
1994-87	1994	But while Americans are more secure from threats abroad, I think we all now  that in many ways we are less secure from threats here at home. Everyday  the national peace is shattered by crime.  
1994-88	1994	In Petaluma, California, an innocent slumber party gives way to agonizing  tragedy for the family of Polly Klaas. An ordinary train ride on Long  Island ends in a hail of nine millimeter rounds. A tourist in Florida is  nearly burned alive by bigots simply because he is black. Right here in our  nation's capital, a brave young man named Jason White, a policeman, the son  and grandson of policemen, is ruthlessly gunned down.  
1994-89	1994	Violent crime and the fear it provokes are crippling our society, limiting  personal freedom, and fraying the ties that bind us.  
1994-90	1994	The crime bill before Congress gives you a chance to do something about it,  a chance to be tough and smart. What does that mean? Let me begin by saying  I care a lot about this issue. Many years ago, when I started out in public  life, I was the attorney general of my state. I served as a governor for a  dozen years. I know what it's like to sign laws increasing penalties, to  build more prison cells, to carry out the death penalty. I understand this  issue and it is not a simple thing.  
1994-91	1994	First, we must recognize that most violent crimes are committed by a small  percentage of criminals who too often break the laws even when they are on  parole. Now those who commit crimes should be punished, and those who  commit repeated violent crimes should be told when you commit a third  violent crime, you will be put away and put away for good, three strikes  and you are out.  
1994-92	1994	Second, we must take serious steps to reduce violence and prevent crime,  beginning with more police officers and more community policing. We know  right now that police who work the streets, know the folks, have the  respect of the neighborhood kids, focus on high crime areas, we know that  they are more likely to prevent crime as well as catch criminals. Look at  the experience of Houston, where the crime rate dropped 17 percent in one  year when that approach was taken. Here tonight is one of those community  policemen, a brave, young detective, Kevin Jett, whose beat is eight square  blocks in one of the toughest neighborhoods in New York. Every day he  restores some sanity and safety, and a sense of values and connection to  the people whose lives he protects. I'd like to ask him to stand up and be  recognized tonight.  
1994-93	1994	You will be given a chance to give the children of this country, the law  abiding working people of this country, and don't forget, in the toughest  neighborhoods in this country, in the highest crime neighborhoods in this  country the vast majority of people get up every day and obey the law, pay  their taxes, do their best to raise their kids. They deserve people like  Kevin Jett, and you're going to be given the chance to give the American  people another 100,000 of them, well trained, and I urge you to do it.  
1994-94	1994	You have before you crime legislation which also establishes a police corps  to encourage young people to get an education, and pay it off by serving as  police officers, which encourages retiring military personnel to move into  police forces--and enormous resources for our country, one which has a  safe schools provisions which will give our young people the chance to walk  to school in safety and to be in school in safety instead of dodging  bullets. These are important things.  
1994-95	1994	The third thing we have to do is to build on the Brady Bill--the Brady Law  to take further steps----to take further steps to keep guns out of the  hands of criminals.  
1994-96	1994	Now, I want to say something about this issue. Hunters must always be free  to hunt, law abiding adults should always be free to own guns and protect  their homes. I respect that part of our culture. I grew up in it. But I  want to ask the sportsmen and others who lawfully own guns to join us in  this campaign to reduce gun violence. I say to you, I know you didn't  create this problem, but we need your help to solve it. There is no  sporting purpose on earth that should stop the United States Congress from  banishing assault weapons that outgun police and cut down children.  
1994-97	1994	Fourth, we must remember that drugs are a factor in an enormous percentage  of crimes. Recent studies indicate, sadly, that drug use is on the rise  again among our young people. The Crime Bill contains--all the crime bills  contain--more money for drug treatment, for criminal addicts, and boot  camps for youthful offenders that include incentives to get off drugs and  to stay off drugs. Our administration's budget, with all its cuts, contains  a large increase in funding for drug treatment and drug education. You must  pass them both. We need then desperately.  
1994-98	1994	My fellow Americans, the problem of violence is an un-American problem. It  has no partisan or philosophical element. Therefore, I urge you find ways  as quickly as possible to set aside partisan differences and pass a strong,  smart, tough crime bill.  
1994-99	1994	But further, I urge you to consider this: As you demand tougher penalties  for those who choose violence, let us also remember how we came to this sad  point. In our toughest neighborhoods, on our meanest streets, in our  poorest rural areas, we have seen a stunning and simultaneous breakdown of  community, family, and work, the heart and soul of civilized society. This  has created a vast vacuum which has been filled by violence and drugs and  gangs. So I ask you to remember that even as we say no to crime, we must  give people, especially our young people something to say yes to. Many of  our initiatives, from job training to welfare reform to health care to  national service will help to rebuild distressed communities, to strengthen  families, to provide work, but more needs to be done. That's what our  community empowerment agenda is all about--challenging businesses to  provide more investment through empowerment zones, ensuring banks will make  loans in the same communities their deposits come from, passing legislation  to unleash the power of capital through community development banks to  create jobs, opportunity, and hope where they're needed most.  
1994-100	1994	But I think you know that to really solve this problem, we'll all have to  put our heads together, leave our ideological armor aside, and find some  new ideas to do even more.  
1994-101	1994	The Role Of Government  
1994-102	1994	And let's be honest, we all know something else, too. Our problems go way  beyond the reach of government. They're rooted in the loss of values and  the disappearance of work and the breakdown of our families and our  communities. My fellow Americans, we can cut the deficit, create jobs,  promote democracy around the world, pass welfare reform and health care,  pass the toughest crime bill in history and still leave too many of our  people behind.  
1994-103	1994	The American people have got to want to change from within if we're going  to bring back work and family and community. We cannot renew our country  when, within a decade, more than half of the children will be born into  families where there has been no marriage. We cannot renew this country  when 13-year-old boys get semi-automatic weapons to shoot 9 year olds for  kicks. We can't renew our country when children are having children and the  fathers walk away as if the kids don't amount to anything. We can't renew  the country when our businesses eagerly look for new investments and new  customers abroad but ignore those people right here at home who'd give  anything to have their jobs and would gladly buy their products if they had  the money to do it.  
1994-104	1994	We can't renew our country unless more of us--I mean all of us--are  willing to join the churches and the other good citizens, people like all  the black ministers I've worked with over the years or the priests and the  nuns I met at Our Lady of Help in East Los Angeles or my good friend Tony  Campolo in Philadelphia, unless we're willing to work with people like  that, people who are saving kids, adopting schools, making streets safer.  All of us can do that.  
1994-105	1994	We can't renew our country until we realize that governments don't raise  children; parents do. Parents who know their children's teachers and turn  off the television and help with the homework and teach their kids right  from wrong--those kind of parents can make all the difference. I know. I  had one. And I'm telling you we have got to stop pointing our fingers at  these kids who have no future and reach our hands out to them. Our country  needs it. We need it. And they deserve it.  
1994-106	1994	And so I say to you tonight let's give our children a future. Let us take  away their guns and give them books. Let us overcome their despair and  replace it with hope. Let us, by our example, teach them to obey the law,  respect our neighbors, and cherish our values. Let us weave these sturdy  threads into a new American community that once more stand strong against  the forces of despair and evil because everybody has a chance to walk into  a better tomorrow.  
1994-107	1994	Oh, there will be naysayers who fear that we won't be equal to the  challenges of this time, but they misread our history, our heritage, even  today's headlines. All those things tell us we can and we will overcome any  challenge.  
1994-108	1994	When the earth shook and fires raged in California; when I saw the  Mississippi deluge the farmlands of the Midwest in a 500 year flood; when  the century's bitterest cold swept from North Dakota to Newport News it  seemed as though the world itself was coming apart at the seams. But the  American people, they just came together. They rose to the occasion,  neighbor helping neighbor, strangers risking life and limb to stay total  strangers, showing the better angels of our nature.  
1994-109	1994	Let us not reserve the better angels only for natural disasters, leaving  our deepest and most profound problems to petty political fighting.  
1994-110	1994	Let us instead by true to our spirit, facing facts, coming together,  bringing hope and moving forward.  
1994-111	1994	Tonight, my fellow Americans, we are summoned to answer a question as old  as the republic itself, what is the state of our union?  
1994-112	1994	It is growing stronger but it must be stronger still. With your help and  God's help it will be.  
1994-113	1994	Thank you and God Bless America.  
1995-1	1995	Mr. President, Mr. Speaker, members of the 104th Congress, my fellow  Americans:  
1995-2	1995	Again we are here in the sanctuary of democracy. And once again, our  democracy has spoken.  
1995-3	1995	So let me begin by congratulating all of you here in the 104th Congress,  and congratulating you, Mr. Speaker.  
1995-4	1995	If we agree on nothing else tonight, we must agree that the American people  certainly voted for change in 1992 and in 1994.  
1995-5	1995	And as I look out at you, I know how some of you must have felt in 1992.  
1995-6	1995	I must say that in both years we didn't hear America singing, we heard  America shouting. And now all of us, Republicans and Democrats alike, must  say: We hear you. We will work together to earn the jobs you have given us.  For we are the keepers of the sacred trust and we must be faithful to it in  this new and very demanding era.  
1995-7	1995	Over 200 years ago, our founders changed the entire course of human history  by joining together to create a new country based on a single, powerful  idea. We hold these truths to be self-evident, that all men are created  equal, endowed by their creator with certain inalienable rights. Among  these are life, liberty and the pursuit of happiness.  
1995-8	1995	It has fallen to every generation since then to preserve that idea--the  American idea--and to deepen and expand its meaning in new and different  times. To Lincoln and to his Congress, to preserve the Union and to end  slavery. To Theodore Roosevelt and Woodrow Wilson, to restrain the abuses  and excesses of the Industrial Revolution and to assert our leadership in  the world. To Franklin Roosevelt, to fight the failure and pain of the  Great Depression and to win our country's great struggle against fascism.  
1995-9	1995	And to all our Presidents since, to fight the cold war. Especially, I  recall two who struggled to fight that cold war in partnership with  Congresses where the majority was of a different party. To Harry Truman,  who summoned us to unparalleled prosperity at home and who built the  architecture of the cold war. And to Ronald Reagan, whom we wish well  tonight, and who exhorted us to carry on until the twilight struggle  against Communism was won.  
1995-10	1995	In another time of change and challenge, I had the honor to be the first  President to be elected in the post-cold-war era, an era marked by the  global economy, the information revolution, unparalleled change in  opportunity and in security for the American people.  
1995-11	1995	I came to this hallowed chamber two years ago on a mission: To restore the  American dream for all our people and to make sure that we move into the  21st century still the strongest force for freedom and democracy in the  entire world.  
1995-12	1995	I was determined then to tackle the tough problems too long ignored. In  this effort I am frank to say that I have made my mistakes. And I have  learned again the importance of humility in all human endeavor.  
1995-13	1995	But I am also proud to say tonight that our country is stronger than it was  two years ago.  
1995-14	1995	Accomplishments  
1995-15	1995	Record numbers, record numbers of Americans are succeeding in the new  global economy. We are at peace, and we are a force for peace and freedom  throughout the world. We have almost six million new jobs since I became  President, and we have the lowest combined rate of unemployment and  inflation in 25 years.  
1995-16	1995	Our businesses are more productive and here we have worked to bring the  deficit down, to expand trade, to put more police on our streets, to give  our citizens more of the tools they need to get an education and to rebuild  their own communities. But the rising tide is not lifting all the boats.  
1995-17	1995	While our nation is enjoying peace and prosperity, too many of our people  are still working harder and harder for less and less. While our businesses  are restructuring and growing more productive and competitive, too many of  our people still can't be sure of having a job next year or even next  month. And far more than our material riches are threatened, things far  more precious to us: our children, our families, our values.  
1995-18	1995	Our civil life is suffering in America today. Citizens are working together  less and shouting at each other more. The common bonds of community which  have been the great strength of our country from its very beginning are  badly frayed.  
1995-19	1995	What are we to do about it?  
1995-20	1995	More than 60 years ago at the dawn of another new era, President Roosevelt  told our nation new conditions impose new requirements on Government and  those who conduct Government. And from that simple proposition he shaped  the New Deal, which helped to restore our nation to prosperity and defined  the relationship between our people and their Government for half a  century.  
1995-21	1995	That approach worked in its time but today we face a very different time  and very different conditions. We are moving from an industrial age built  on gears and sweat to an information age demanding skills and learning and  flexibility.  
1995-22	1995	Our Government, once a champion of national purpose, is now seen by many as  simply a captive of narrow interests putting more burdens on our citizens  rather than equipping them to get ahead. The values that used to hold us  all together seem to be coming apart.  
1995-23	1995	So tonight we must forge a new social compact to meet the challenges of  this time. As we enter a new era, we need a new set of understandings not  just with Government but, even more important, with one another as  Americans.  
1995-24	1995	New Covenant  
1995-25	1995	That's what I want to talk with you about tonight. I call it the New  Covenant but it's grounded in a very, very old idea that all Americans have  not just a right but a solemn responsibility to rise as far as their  God-given talents and determination can take them. And to give something  back to their communities and their country in return.  
1995-26	1995	Opportunity and responsibility--they go hand in hand; we can't have one  without the other, and our national community can't hold together without  both.  
1995-27	1995	Our New Covenant is a new set of understandings for how we can equip our  people to meet the challenges of the new economy, how we can change the way  our Government works to fit a different time and, above all, how we can  repair the damaged bonds in our society and come together behind our common  purpose. We must have dramatic change in our economy, our Government and  ourselves.  
1995-28	1995	My fellow Americans, without regard to party, let us rise to the occasion.  Let us put aside partisanship and pettiness and pride. As we embark on this  course, let us put our country first, remembering that regardless of party  label we are all Americans. And let the final test of everything we do be a  simple one: Is it good for the American people?  
1995-29	1995	Let me begin by saying that we cannot ask Americans to be better citizens  if we are not better servants. You made a good start by passing that law  which applies to Congress all the laws you put on the private sector--and  I was proud to sign it yesterday.  
1995-30	1995	But we have a lot more to do before people really trust the way things work  around here. Three times as many lobbyists are in the streets and corridors  of Washington as were here 20 years ago. The American people look at their  capital and they see a city where the well-connected and the well-protected  can work the system, but the interests of ordinary citizens are often left  out.  
1995-31	1995	As the new Congress opened its doors, lobbyists were still doing business  as usual--the gifts, the trips--all the things that people are concerned  about haven't stopped.  
1995-32	1995	Twice this month you missed opportunities to stop these practices. I know  there were other considerations in those votes, but I want to use something  that I've heard my Republican friends say from time to time: There doesn't  have to be a law for everything.  
1995-33	1995	So tonight I ask you to just stop taking the lobbyists' perks, just stop.  
1995-34	1995	We don't have to wait for legislation to pass to send a strong signal to  the American people that things are really changing. But I also hope you  will send me the strongest possible lobby reform bill, and I'll sign that,  too. We should require lobbyists to tell the people for whom they work what  they're spending, what they want. We should also curb the role of big money  in elections by capping the cost of campaigns and limiting the influence of  PAC's.  
1995-35	1995	And as I have said for three years, we should work to open the air waves so  that they can be an instrument of democracy not a weapon of destruction by  giving free TV time to candidates for public office.  
1995-36	1995	When the last Congress killed political reform last year, it was reported  in the press that the lobbyists actually stood in the halls of this sacred  building and cheered. This year, let's give the folks at home something to  cheer about.  
1995-37	1995	More important, I think we all agree that we have to change the way the  Government works. Let's make it smaller, less costly and smarter. Leaner  not meaner.  
1995-38	1995	I just told the Speaker the equal time doctrine's alive and well.  
1995-39	1995	The Role Of Government  
1995-40	1995	The New Covenant approach to governing is as different from the old  bureaucratic way as the computer is from the manual typewriter. The old way  of governing around here protected organized interests; we should look out  for the interests of ordinary people. The old way divided us by interests,  constituency or class; the New Covenant way should unite us behind a common  vision of what's best for our country.  
1995-41	1995	The old way dispensed services through large, top-down, inflexible  bureaucracies. The New Covenant way should shift these resources and  decision making from bureaucrats to citizens, injecting choice and  competition and individual responsibility into national policy.  
1995-42	1995	The old way of governing around here actually seemed to reward failure. The  New Covenant way should have built-in incentives to reward success.  
1995-43	1995	The old way was centralized here in Washington. The New Covenant way must  take hold in the communities all across America, and we should help them to  do that.  
1995-44	1995	Our job here is to expand opportunity, not bureaucracy, to empower people  to make the most of their own lives and to enhance our security here at  home and abroad.  
1995-45	1995	We must not ask Government to do what we should do for ourselves. We should  rely on Government as a partner to help us to do more for ourselves and for  each other.  
1995-46	1995	I hope very much that as we debate these specific and exciting matters, we  can go beyond the sterile discussion between the illusion that there is  somehow a program for every problem, on the one hand, and the other  illusion that the Government is the source of every problem that we have.  
1995-47	1995	Our job is to get rid of yesterday's Government so that our own people can  meet today's and tomorrow's needs.  
1995-48	1995	And we ought to do it together.  
1995-49	1995	You know, for years before I became President, I heard others say they  would cut Government and how bad it was. But not much happened.  
1995-50	1995	We actually did it. We cut over a quarter of a trillion dollars in  spending, more than 300 domestic programs, more than 100,000 positions from  the Federal bureaucracy in the last two years alone.  
1995-51	1995	Based on decisions already made, we will have cut a total of more than a  quarter of a million positions from the Federal Government, making it the  smallest it has been since John Kennedy was president, by the time I come  here again next year.  
1995-52	1995	Under the leadership of Vice President Gore, our initiatives have already  saved taxpayers $ 63 billion. The age of the $ 500 hammer and the ashtray  you can break on David Letterman is gone. Deadwood programs like mohair  subsidies are gone. We've streamlined the Agriculture Department by  reducing it by more than 1,200 offices. We've slashed the small-business  loan form from an inch thick to a single page. We've thrown away the  Government's 10,000-page personnel manual.  
1995-53	1995	And the Government is working better in important ways. FEMA, the Federal  Emergency Management Agency, has gone from being a disaster to helping  people in disaster.  
1995-54	1995	You can ask the farmers in the Middle West who fought the flood there or  the people in California who've dealt with floods and earthquakes and fires  and they'll tell you that.  
1995-55	1995	Government workers, working hand-in-hand with private business, rebuilt  Southern California's fractured freeways in record time and under budget.  
1995-56	1995	And because the Federal Government moved fast, all but one of the 5,600  schools damaged in the earthquake are back in business.  
1995-57	1995	Now, there are a lot of other things that I could talk about. I want to  just mention one because it'll be discussed here in the next few weeks.  
1995-58	1995	University administrators all over the country have told me that they are  saving weeks and weeks of bureaucratic time now because of our direct  college loan program, which makes college loans cheaper and more affordable  with better repayment terms for students, costs the Government less and  cuts out paperwork and bureaucracy for the Government and for the  universities.  
1995-59	1995	We shouldn't cap that program, we should give every college in America the  opportunity to be a part of it.  
1995-60	1995	Previous Government programs gather dust; the reinventing Government report  is getting results. And we're not through--there's going to be a second  round of reinventing Government.  
1995-61	1995	We propose to cut $ 130 billion in spending by shrinking departments,  extending our freeze on domestic spending, cutting 60 public housing  programs down to 3, getting rid of over a hundred programs we do not need  like the Interstate Commerce Commission and the Helium Reserve Program.  
1995-62	1995	And we're working on getting rid of unnecessary regulations and making them  more sensible. The programs and regulations that have outlived their  usefulness should go. We have to cut yesterday's Government to help solve  tomorrow's problems.  
1995-63	1995	And we need to get Government closer to the people it's meant to serve. We  need to help move programs down to the point where states and communities  and private citizens in the private sector can do a better job. If they can  do it, we ought to let them do it. We should get out of the way and let  them do what they can do better.  
1995-64	1995	Community Empowerment  
1995-65	1995	Taking power away from Federal bureaucracies and giving it back to  communities and individuals is something everyone should be able to be for.  It's time for Congress to stop passing onto the states the cost of  decisions we make here in Washington.  
1995-66	1995	I know there are still serious differences over the details of the unfunded  mandates legislation but I want to work with you to make sure we pass a  reasonable bill which will protect the national interest and give justified  relief where we need to give it.  
1995-67	1995	For years, Congress concealed in the budget scores of pet spending  projects. Last year was no different. There was a million dollars to study  stress in plants and $ 12 million for a tick removal program that didn't  work. It's hard to remove ticks; those of us who've had them know.  
1995-68	1995	But I'll tell you something, if you'll give me the line-item veto, I'll  remove some of that unnecessary spending.  
1995-69	1995	But, I think we should all remember, and almost all of us would agree, that  Government still has important responsibilities.  
1995-70	1995	Our young people--we should think of this when we cut--our young people  hold our future in their hands. We still owe a debt to our veterans. And  our senior citizens have made us what we are.  
1995-71	1995	Budget  
1995-72	1995	Now, my budget cuts a lot. But it protects education, veterans, Social  Security and Medicare, and I hope you will do the same thing. You should,  and I hope you will.  
1995-73	1995	And when we give more flexibility to the states, let us remember that there  are certain fundamental national needs that should be addressed in every  state, north and south, east and west.  
1995-74	1995	Immunization against childhood disease, school lunches in all our schools,  Head Start, medical care and nutrition for pregnant women and infants--all  these things are in the national interest.  
1995-75	1995	I applaud your desire to get rid of costly and unnecessary regulations, but  when we deregulate let's remember what national action in the national  interest has given us: safer food for our families, safer toys for our  children, safer nursing homes for our parents, safer cars and highways and  safer workplaces, cleaner air and cleaner water. Do we need common sense  and fairness in our regulations? You bet we do. But we can have common  sense and still provide for safe drinking water. We can have fairness and  still clean up toxic dumps and we ought to do it.  
1995-76	1995	Should we cut the deficit more? Well of course we should. Of course we  should. But we can bring it down in a way that still protects our economic  recovery and does not unduly punish people who should not be punished, but  instead should be helped.  
1995-77	1995	I know many of you in this chamber support the balanced-budget amendment. I  certainly want to balance the budget. Our Administration has done more to  bring the budget down and to save money than any in a very, very long  time.  
1995-78	1995	If you believe passing this amendment is the right thing to do, then you  have to be straight with the American people. They have a right to know  what you're going to cut, what taxes you're going to raise, how it's going  to affect them.  
1995-79	1995	And we should be doing things in the open around here. For example,  everybody ought to know if this proposal is going to endanger Social  Security. I would oppose that, and I think most Americans would.  
1995-80	1995	Welfare  
1995-81	1995	Nothing is done more to undermine our sense of common responsibility than  our failed welfare system. This is one of the problems we have to face here  in Washington in our New Covenant. It rewards welfare over work, it  undermines family values, it lets millions of parents get away without  paying their child support, it keeps a minority--but a significant  minority--of the people on welfare trapped on it for a very long time.  
1995-82	1995	I worked on this problem for a long time--nearly 15 years now. As a  Governor I had the honor of working with the Reagan Administration to write  the last welfare reform bill back in 1988.  
1995-83	1995	In the last two years we made a good start in continuing the work of  welfare reform. Our Administration gave two dozen states the right to slash  through Federal rules and regulations to reform their own welfare systems  and to try to promote work and responsibility over welfare and dependency.  
1995-84	1995	Last year, I introduced the most sweeping welfare reform plan ever  presented by an Administration. We have to make welfare what it was meant  to be--a second chance, not a way of life.  
1995-85	1995	We have to help those on welfare move to work as quickly as possible, to  provide child care and teach them skills, if that's what they need, for up  to two years. But after that, there ought to be a simple, hard rule. Anyone  who can work must go to work.  
1995-86	1995	If a parent isn't paying child support, they should be forced to pay.  
1995-87	1995	We should suspend driver's licenses, track them across state lines, make  them work off what they owe. That is what we should do. Governments do not  raise children, people do. And the parents must take responsibility for the  children they bring into this world.  
1995-88	1995	I want to work with you, with all of you, to pass welfare reform. But our  goal must be to liberate people and lift them from dependence to  independence, from welfare to work, from mere childbearing to responsible  parenting. Our goal should not be to punish them because they happen to be  poor.  
1995-89	1995	We should--we should require work and mutual responsibility. But we  shouldn't cut people off just because they're poor, they're young or even  because they're unmarried. We should promote responsibility by requiring  young mothers to live at home with their parents or in other supervised  settings, by requiring them to finish school. But we shouldn't put them and  their children out on the street.  
1995-90	1995	And I know all the arguments pro and con and I have read and thought about  this for a long time: I still don't think we can, in good conscience,  punish poor children for the mistakes of their parents.  
1995-91	1995	My fellow Americans, every single survey shows that all the American people  care about this, without regard to party or race or region. So let this be  the year we end welfare as we know it.  
1995-92	1995	But also let this be the year that we are all able to stop using this issue  to divide America.  
1995-93	1995	No one is more eager to end welfare.  
1995-94	1995	I may be the only President who's actually had the opportunity to sit in  the welfare office, who's actually spent hours and hours talking to people  on welfare, and I am telling you the people who are trapped on it know it  doesn't work. They also want to get off.  
1995-95	1995	So we can promote, together, education and work and good parenting. I have  no problem with punishing bad behavior or the refusal to be a worker or a  student or a responsible parent. I just don't want to punish poverty and  past mistakes. All of us have made our mistakes and none of us can change  our yesterdays, but every one of us can change our tomorrows.  
1995-96	1995	And America's best example of that may be Lynn Woolsey, who worked her way  off welfare to become a Congresswoman from the state of California.  
1995-97	1995	Crime  
1995-98	1995	I know the members of this Congress are concerned about crime, as are all  the citizens of our country. But I remind you that last year we passed a  very tough crime bill--longer sentences, three strikes and you're out,  almost 60 new capital punishment offenses, more prisons, more prevention,  100,000 more police--and we paid for it all by reducing the size of the  Federal bureaucracy and giving the money back to local communities to lower  the crime rate.  
1995-99	1995	There may be other things we can do to be tougher on crime, to be smarter  with crime, to help to lower that rate first. Well if there are, let's talk  about them and let's do them. But let's not go back on the things that we  did last year that we know work--that we know work because the local  law-enforcement officers tell us that we did the right thing. Because local  community leaders, who've worked for years and years to lower the crime  rate, tell us that they work.  
1995-100	1995	Let's look at the experience of our cities and our rural areas where the  crime rate has gone down and ask the people who did it how they did it and  if what we did last year supports the decline in the crime rate, and I am  convinced that it does, let us not go back on it, let's stick with it,  implement it--we've got four more hard years of work to do to do that.  
1995-101	1995	I don't want to destroy the good atmosphere in the room or in the country  tonight, but I have to mention one issue that divided this body greatly  last year. The last Congress also passed the Brady bill and in the crime  bill the ban on 19 assault weapons.  
1995-102	1995	I don't think it's a secret to anybody in this room that several members of  the last Congress who voted for that aren't here tonight because they voted  for it. And I know, therefore, that some of you that are here because they  voted for it are under enormous pressure to repeal it. I just have to tell  you how I feel about it.  
1995-103	1995	The members who voted for that bill and I would never do anything to  infringe on the right to keep and bear arms to hunt and to engage in other  appropriate sporting activities. I've done it since I was a boy, and I'm  going to keep right on doing it until I can't do it anymore.  
1995-104	1995	But a lot of people laid down their seats in Congress so that police  officers and kids wouldn't have to lay down their lives under a hail of  assault-weapon attacks, and I will not let that be repealed. I will not let  it be repealed.  
1995-105	1995	I'd like to talk about a couple of other issues we have to deal with. I  want us to cut more spending, but I hope we won't cut Government programs  that help to prepare us for the new economy, promote responsibility and are  organized from the grass roots up, not by Federal bureaucracy.  
1995-106	1995	The very best example of this is the National Service Corps--AmeriCorps.  It passed with strong bipartisan support and now there are 20,000 Americans  --more than ever served in one year in the Peace Corps--working all over  this country, helping person to person in local grass-roots volunteer  groups, solving problems and in the process earning some money for their  education.  
1995-107	1995	This is citizenship at its best. It's good for the AmeriCorps members, but  it's good for the rest of us, too. It's the essence of the New Covenant and  we shouldn't stop it.  
1995-108	1995	Illegal Immigration  
1995-109	1995	All Americans, not only in the states most heavily affected, but in every  place in this country are rightly disturbed by the large numbers of illegal  aliens entering our country.  
1995-110	1995	The jobs they hold might otherwise be held by citizens or legal immigrants.  The public services they use impose burdens on our taxpayers. That's why  our Administration has moved aggressively to secure our borders more, by  hiring a record number of new border guards, by deporting twice as many  criminal aliens as ever before, by cracking down on illegal hiring, by  barring welfare benefits to illegal aliens.  
1995-111	1995	In the budget I will present to you, we will try to do more to speed the  deportation of illegal aliens who are arrested for crimes, to better  identify illegal aliens in the workplace as recommended by the commission  headed by former Congresswoman Barbara Jordan.  
1995-112	1995	We are a nation of immigrants, but we are also a nation of laws. It is  wrong and ultimately self-defeating for a nation of immigrants to permit  the kind of abuse of our immigration laws we have seen in recent years, and  we must do more to stop it.  
1995-113	1995	The most important job of our Government in this new era is to empower the  American people to succeed in the global economy. America has always been a  land of opportunity, a land where, if you work hard, you can get ahead.  We've become a great middle-class country; middle-class values sustain us.  We must expand that middle class and shrink the underclass even as we do  everything we can to support the millions of Americans who are already  successful in the new economy.  
1995-114	1995	America is once again the world's strongest economic power: almost six  million new jobs in the last two years, exports booming, inflation down,  high-wage jobs are coming back. A record number of American entrepreneurs  are living the American dream.  
1995-115	1995	If we want it to stay that way, those who work and lift our nation must  have more of its benefits.  
1995-116	1995	Today, too many of those people are being left out. They're working harder  for less. They have less security, less income, less certainty that they  can even afford a vacation, much less college for their kids or retirement  for themselves.  
1995-117	1995	We cannot let this continue. If we don't act, our economy will probably  keep doing what it's been doing since about 1978, when the income growth  began to go to those at the very top of our economic scale. And the people  in the vast middle got very little growth and people who worked like crazy  but were on the bottom then, fell even further and further behind in the  years afterward, no matter how hard they worked.  
1995-118	1995	We've got to have a Government that can be a real partner in making this  new economy work for all of our people, a Government that helps each and  every one of us to get an education and to have the opportunity to renew  our skills.  
1995-119	1995	Education  
1995-120	1995	That's why we worked so hard to increase educational opportunities in the  last two years from Head Start to public schools to apprenticeships for  young people who don't go to college, to making college loans more  available and more affordable.  
1995-121	1995	That's the first thing we have to do: We've got to do something to empower  people to improve their skills.  
1995-122	1995	Taxes  
1995-123	1995	Second thing we ought to do is to help people raise their incomes  immediately by lowering their taxes.  
1995-124	1995	We took the first step in 1993 with a working family tax cut for 15 million  families with incomes under $ 27,000, a tax cut that this year will average  about $ 1,000 a family.  
1995-125	1995	And we also gave tax reductions to most small and new businesses. Before we  could do more than that, we first had to bring down the deficit we  inherited and we had to get economic growth up. Now we've done both, and  now we can cut taxes in a more comprehensive way.  
1995-126	1995	But tax cuts should reinforce and promote our first obligation: to empower  our citizens through education and training to make the most of their own  lives. The spotlight should shine on those who make the right choices for  themselves, their families and their communities.  
1995-127	1995	Middle Class Bill Of Rights  
1995-128	1995	I have proposed a middle-class bill of rights, which should properly be  called the bill of rights and responsibilities, because its provisions only  benefit those who are working to educate and raise their children and to  educate themselves. It will, therefore, give needed tax relief and raise  incomes, in both the short run and the long run, in a way that benefits all  of us.  
1995-129	1995	There are four provisions:  
1995-130	1995	First, a tax deduction for all education and training after high school. If  you think about it, we permit businesses to deduct their investment, we  permit individuals to deduct interest on their home mortgages, but today an  education is even more important to the economic well-being of our whole  country than even those things are. We should do everything we can to  encourage it, and I hope you will support it.  
1995-131	1995	Second, we ought to cut taxes $ 500 for families with children under 13.  
1995-132	1995	Third, we ought to foster more savings and personal responsibility by  permitting people to establish an individual retirement account and  withdraw from it tax free for the cost of education, health care,  first-time home buying or the care of a parent.  
1995-133	1995	And fourth, we should pass a G.I. bill for America's workers. We propose to  collapse nearly 70 Federal programs and not give the money to the states  but give the money directly to the American people, offer vouchers to them  so that they--if they're laid off or if they're working for a very low  wage--can get a voucher worth $ 2,600 a year for up to two years to go to  their local community colleges or wherever else they want to get the skills  they need to improve their lives. Let's empower people in this way. Move it  from the Government directly to the workers of America.  
1995-134	1995	Cutting The Deficit Now  
1995-135	1995	Any one of us can call for a tax cut, but I won't accept one that explodes  the deficit or puts our recovery at risk. We ought to pay for our tax cuts  fully and honestly. Just two years ago it was an open question whether we  would find the strength to cut the deficit.  
1995-136	1995	Thanks to the courage of the people who were here then, many of whom didn't  return, we did cut the deficit. We began to do what others said would not  be done: We cut the deficit by over $ 600 billion, about $ 10,000 for every  family in this country. It's coming down three years in a row for the first  time since Mr. Truman was President and I don't think anybody in America  wants us to let it explode again.  
1995-137	1995	In the budget I will send you, the middle-class bill of rights is fully  paid for by budget cuts in bureaucracy, cuts in programs, cuts in special  interest subsidies. And the spending cuts will more than double the tax  cuts. My budget pays for the middle-class bill of rights without any cuts  in Medicare, and I will oppose any attempts to pay for tax cuts with  Medicare cuts. That's not the right thing to do.  
1995-138	1995	I know that a lot of you have your own ideas about tax relief. And some of  them, I find quite interesting. I really want to work with all of you.  
1995-139	1995	My tests for our proposals will be: Will it create jobs and raise incomes?  Will it strengthen our families and support our children? Is it paid for?  Will it build the middle class and shrink the underclass?  
1995-140	1995	If it does, I'll support it. But if it doesn't, I won't.  
1995-141	1995	Minimum Wage  
1995-142	1995	The goal of building the middle class and shrinking the underclass is also  why I believe that you should raise the minimum wage.  
1995-143	1995	It rewards work--two and a half million Americans, often women with  children, are working out there today for four-and-a-quarter an hour. In  terms of real buying power, by next year, that minimum wage will be at a  40-year low. That's not my idea of how the new economy ought to work.  
1995-144	1995	Now I studied the arguments and the evidence for and against a minimum-wage  increase. I believe the weight of the evidence is that a modest increase  does not cost jobs and may even lure people back into the job market. But  the most important thing is you can't make a living on $ 4.25 an hour. Now  --especially if you have children, even with the working families tax cut  we passed last year.  
1995-145	1995	In the past, the minimum wage has been a bipartisan issue and I think it  should be again. So I want to challenge you to have honest hearings on  this, to get together to find a way to make the minimum wage a living  wage.  
1995-146	1995	Members of Congress have been here less than a month but by the end of the  week--28 days into the new year--every member of Congress will have  earned as much in congressional salary as a minimum-wage worker makes all  year long.  
1995-147	1995	Everybody else here, including the President, has something else that too  many Americans do without and that's health care.  
1995-148	1995	Health Care  
1995-149	1995	Now, last year we almost came to blows over health care, but we didn't do  anything. And the cold, hard fact is that since last year--since I was  here--another 1.1 million Americans in working families have lost their  health care. And the cold, hard fact is that many millions more--most of  them farmers and small business people and self-employed people--have  seen their premiums skyrocket, their co-pays and deductibles go up.  
1995-150	1995	There's a whole bunch of people in this country that in the statistics have  health insurance but really what they've got is a piece of paper that says  they won't lose their home if they get sick.  
1995-151	1995	Now I still believe our country has got to move toward providing health  security for every American family, but--but I know that last year, as the  evidence indicates, we bit off more than we could chew.  
1995-152	1995	So I'm asking you that we work together. Let's do it step by step. Let's do  whatever we have to do to get something done. Let's at least pass  meaningful insurance reform so that no American risks losing coverage for  facing skyrocketing prices but that nobody loses their coverage because  they face high prices or unavailable insurance when they change jobs or  lose a job or a family member gets sick.  
1995-153	1995	I want to work together with all of you who have an interest in this: with  the Democrats who worked on it last time, with the Republican leaders like  Senator Dole who has a longtime commitment to health care reform and made  some constructive proposals in this area last year. We ought to make sure  that self-employed people in small businesses can buy insurance at more  affordable rates through voluntary purchasing pools. We ought to help  families provide long-term care for a sick parent to a disabled child. We  can work to help workers who lose their jobs at least keep their health  insurance coverage for a year while they look for work, and we can find a  way--it may take some time, but we can find a way--to make sure that our  children have health care.  
1995-154	1995	You know, I think everybody in this room, without regard to party, can be  proud of the fact that our country was rated as having the world's most  productive economy for the first time in nearly a decade, but we can't be  proud of the fact that we're the only wealthy country in the world that has  a smaller percentage of the work force and their children with health  insurance today than we did 10 years ago--the last time we were the most  productive economy in the world.  
1995-155	1995	So let's work together on this. It is too important for politics as usual.  
1995-156	1995	Much of what the American people are thinking about tonight is what we've  already talked about. A lot of people think that the security concerns of  America today are entirely internal to our borders, they relate to the  security of our jobs and our homes and our incomes and our children, our  streets, our health and protecting those borders.  
1995-157	1995	Foreign Policy  
1995-158	1995	Now that the Cold War has passed, it's tempting to believe that all the  security issues, with the possible exception of trade, reside here at home.  But it's not so. Our security still depends on our continued world  leadership for peace and freedom and democracy. We still can't be strong at  home unless we're strong abroad.  
1995-159	1995	Mexico  
1995-160	1995	The financial crisis in Mexico is a case in point. I know it's not popular  to say it tonight but we have to act, not for the Mexican people but for  the sake of the millions of Americans whose livelihoods are tied to  Mexico's well-being. If we want to secure American jobs, preserve American  exports, safeguard America's borders then we must pass the stabilization  program and help to put Mexico back on track.  
1995-161	1995	Now let me repeat: it's not a loan, it's not foreign aid, it's not a  bail-out. We'll be given a guarantee like co-signing a note with good  collateral that will cover our risk.  
1995-162	1995	This legislation is the right thing for America. That's why the bipartisan  leadership has supported it. And I hope you in Congress will pass it  quickly. It is in our interest and we can explain it to the American  people, because we're going to do it in the right way.  
1995-163	1995	Russia  
1995-164	1995	You know, tonight this is the first State of the Union address ever  delivered since the beginning of the cold war when not a single Russian  missile is pointed at the children of America.  
1995-165	1995	And along with the Russians, we're on our way to destroying the missiles  and the bombers that carry 9,000 nuclear warheads. We've come so far so  fast in this post-cold-war world that it's easy to take the decline of the  nuclear threat for granted. But it's still there, and we aren't finished  yet.  
1995-166	1995	This year, I'll ask the Senate to approve START II to eliminate weapons  that carry 5,000 more warheads. The United States will lead the charge to  extend indefinitely the Nuclear Nonproliferation Treaty, to enact a  comprehensive nuclear test ban, and to eliminate chemical weapons.  
1995-167	1995	North Korea  
1995-168	1995	To stop and roll back North Korea's potentially deadly nuclear program,  we'll continue to implement the agreement we have reached with that nation.  It's smart, it's tough, it's a deal based on continuing inspection with  safeguards for our allies and ourselves.  
1995-169	1995	This year, I'll submit to Congress comprehensive legislation to strengthen  our hand in combating terrorists, whether they strike at home or abroad. As  the cowards who bombed the World Trade Center found out, this country will  hunt down terrorists and bring them to justice.  
1995-170	1995	Middle East  
1995-171	1995	Just this week, another horrendous terrorist act in Israel killed 19 and  injured scores more. On behalf of the American people and all of you, I  send our deepest sympathy to the families of the victims. I know that in  the face of such evil, it is hard for the people in the Middle East to go  forward. But the terrorists represent the past, not the future. We must and  we will pursue a comprehensive peace between Israel and all her neighbors  in the Middle East.  
1995-172	1995	Accordingly, last night I signed an executive order that will block the  assets in the United States of terrorist organizations that threaten to  disrupt the peace process. It prohibits financial transactions with these  groups.  
1995-173	1995	And tonight I call on all our allies in peace-loving nations throughout the  world to join us with renewed fervor in a global effort to combat  terrorism, we cannot permit the future to be marred by terror and fear and  paralysis.  
1995-174	1995	Defense  
1995-175	1995	From the day I took the oath of office, I pledged that our nation would  maintain the best-equipped, best-trained and best-prepared military on  earth. We have and they are. They have managed the dramatic downsizing of  our forces after the cold war with remarkable skill and spirit. But to make  sure our military is ready for action and to provide the pay and the  quality of life the military and their families deserve, I'm asking the  Congress to add $ 25 billion in defense spending over the next six years.  
1995-176	1995	I have visited many bases at home and around the world since I became  President. Tonight I repeat that request with renewed conviction. We ask a  very great deal of our armed forces. Now that they are smaller in number,  we ask more of them. They go out more often to more different places and  stay longer. They are called to service in many, many ways, and we must  give them and their families what the times demand and what they have  earned.  
1995-177	1995	Just think about what our troops have done in the last year, showing  America at its best, helping to save hundreds of thousands of people in  Rwanda, moving with lightning speed to head off another threat to Kuwait,  giving freedom and democracy back to the people of Haiti.  
1995-178	1995	We have proudly supported peace and prosperity and freedom from South  Africa to Northern Ireland, from Central and Eastern Europe to Asia, from  Latin America to the Middle East. All these endeavors are good in those  places but they make our future more confident and more secure.  
1995-179	1995	Well, my fellow Americans, that's my agenda for America's future: expanding  opportunity not bureaucracy, enhancing security at home and abroad,  empowering our people to make the most of their own lives.  
1995-180	1995	It's ambitious and achievable. But it's not enough.  
1995-181	1995	We even need more than new ideas for changing the world or equipping  Americans to compete in the new economy, more than a Government that's  smaller, smarter and wiser, more than all the changes we can make in  Government and in the private sector from the outside in.  
1995-182	1995	Values And Voices  
1995-183	1995	Our fortunes and our prosperity also depend upon our ability to answer some  questions from within--from the values and voices that speak to our hearts  as well as our heads, voices that tell us we have to do more to accept  responsibility for ourselves and our families, for our communities, and  yes, for our fellow citizens.  
1995-184	1995	We see our families and our communities all over this country coming apart.  And we feel the common ground shifting from under us. The PTA, the town  hall meeting, the ball park--it's hard for a lot of overworked parents to  find the time and space for those things that strengthen the bonds of trust  and cooperation.  
1995-185	1995	Too many of our children don't even have parents and grandparents who can  give them those experiences that they need to build their own character and  their sense of identity. We all know that while we here in this chamber can  make a difference on those things, that the real differences will be made  by our fellow citizens where they work and where they live.  
1995-186	1995	And it'll be made almost without regard to party. When I used to go to the  softball park in Little Rock to watch my daughter's league and people would  come up to me--fathers and mothers--and talk to me, I can honestly say I  had no idea whether 90 percent of them were Republicans or Democrats.  
1995-187	1995	When I visited the relief centers after the floods in California, Northern  California, last week, a woman came up to me and did something that very  few of you would do. She hugged me and said, "Mr. President, I'm a  Republican, but I'm glad you're here."  
1995-188	1995	Now, why? We can't wait for disasters to act the way we used to act every  day. Because as we move into this next century, everybody matters. We don't  have a person to waste. And a lot of people are losing a lot of chances to  do better.  
1995-189	1995	That means that we need a New Covenant for everybody--for our corporate  and business leaders, we're going to work here to keep bringing the deficit  down, to expand markets, to support their success in every possible way.  But they have an obligation: when they're doing well, to keep jobs in our  communities and give their workers a fair share of the prosperity they  generate.  
1995-190	1995	For people in the entertainment industry in this country, we applaud your  creativity and your worldwide success and we support your freedom of  expression but you do have a responsibility to assess the impact of your  work and to understand the damage that comes from the incessant,  repetitive, mindless violence and irresponsible conduct that permeates our  media all the time.  
1995-191	1995	We've got to ask our community leaders and all kinds of organizations to  help us stop our most serious social problem: the epidemic of teen  pregnancies and births where there is no marriage. I have sent to Congress  a plan to target schools all over this country with anti-pregnancy programs  that work. But government can only do so much. Tonight, I call on parents  and leaders all across this country to join together in a national campaign  against teen pregnancy to make a difference. We can do this and we must.  
1995-192	1995	And I would like to say a special word to our religious leaders. You know,  I'm proud of the fact that the United States has more house of worship per  capita than any country in the world. These people, who lead our houses of  worship, can ignite their congregations to carry their faith into action,  can reach out to all of our children, to all of the people in distress, to  those who have been savaged by the breakdown of all we hold dear, because  so much of what must be done must come from the inside out. And our  religious leaders and their congregations can make all the difference. They  have a role in the New Covenant as well.  
1995-193	1995	There must be more responsibility for all of our citizens. You know it  takes a lot of people to help all the kids in trouble stay off the streets  and in school. It takes a lot of people to build the Habitat for Humanity  houses that the Speaker celebrates on his lapel pin. It takes a lot of  people to provide the people power for all the civic organizations in this  country that made our communities mean so much to most of us when we were  kids. It takes every parent to teach the children the difference between  right and wrong and to encourage them to learn and grow and to say no to  the wrong things but also to believe that they can be whatever they want to  be.  
1995-194	1995	I know it's hard when you're working harder for less, when you're under  great stress, to do these things. A lot of our people don't have the time  or the emotional stress they think to do the work of citizenship. Most of  us in politics haven't helped very much. For years, we've mostly treated  citizens like they were consumers or spectators, sort of political couch  potatoes who were supposed to watch the TV ads--either promise them  something for nothing or play on their fears and frustrations. And more and  more of our citizens now get most of their information in very negative and  aggressive ways that is hardly conducive to honest and open conversations.  But the truth is we have got to stop seeing each other as enemies just  because we have different views.  
1995-195	1995	If you go back to the beginning of this country, the great strength of  America, as de Tocqueville pointed out when he came here a long time ago,  has always been our ability to associate with people who were different  from ourselves and to work together to find common ground. And in this day  everybody has a responsibility to do more of that. We simply cannot wait  for a tornado, a fire or a flood to behave like Americans ought to behave  in dealing with one another.  
1995-196	1995	I want to finish up here by pointing out some folks that are up with the  First Lady that represent what I'm trying to talk about. Citizens. I have  no idea what their party affiliation is or who they voted for in the last  election, but they represent what we ought to be doing.  
1995-197	1995	Cindy Perry teaches second-graders to read in AmeriCorps in rural Kentucky.  She gains when she gives. She's a mother of four.  
1995-198	1995	She says that her service inspired her to get her high school equivalency  last year. She was married when she was a teen-ager. Stand up, Cindy. She  married when she was a teen-ager. She had four children, but she had time  to serve other people, to get her high school equivalency and she's going  to use her AmeriCorps money to go back to college.  
1995-199	1995	Steven Bishop is the police chief of Kansas City. He's been a national  leader--stand up Steve. He's been a national leader in using more police  in community policing and he's worked with AmeriCorps to do it, and the  crime rate in Kansas City has gone down as a result of what he did.  
1995-200	1995	Cpl. Gregory Depestre went to Haiti as part of his adopted country's force  to help secure democracy in his native land. And I might add we must be the  only country in the world that could have gone to Haiti and taken  Haitian-Americans there who could speak the language and talk to the  people, and he was one of them and we're proud of him.  
1995-201	1995	The next two folks I've had the honor of meeting and getting to know a  little bit. The Rev. John and the Rev. Diana Cherry of the A.M.E. Zion  Church in Temple Hills, Md. I'd like to ask them to stand. I want to tell  you about them. In the early 80's they left Government service and formed a  church in a small living room in a small house in the early 80's. Today  that church has 17,000 members. It is one of the three or four biggest  churches in the entire United States. It grows by 200 a month.  
1995-202	1995	They do it together. And the special focus of their ministry is keeping  families together. They are--Two things they did make a big impression on  me. I visited their church once and I learned they were building a new  sanctuary closer to the Washington, D.C., line, in a higher-crime,  higher-drug-rate area because they thought it was part of their ministry to  change the lives of the people who needed them. Second thing I want to say  is that once Reverend Cherry was at a meeting at the White House with some  other religious leaders and he left early to go back to his church to  minister to 150 couples that he had brought back to his church from all  over America to convince them to come back together to save their marriages  and to raise their kids. This is the kind of work that citizens are doing  in America. We need more of it and it ought to be lifted up and supported.  
1995-203	1995	The last person I want to introduce is Jack Lucas from Hattiesburg,  Mississippi. Jack, would you stand up. Fifty years ago in the sands of Iwo  Jima, Jack Lucas taught and learned the lessons of citizenship. On February  the 20th, 1945, he and three of his buddies encountered the enemy and two  grenades at their feet. Jack Lucas threw himself on both of them. In that  moment he saved the lives of his companions and miraculously in the next  instant a medic saved his life. He gained a foothold for freedom and at the  age of 17, just a year older than his grandson, who's up there with him  today, and his son, who is a West Point graduate and a veteran, at 17, Jack  Lucas became the youngest marine in history and the youngest soldier in  this century to win the Congressional Medal of Honor. All these years  later, yesterday, here's what he said about that day: Didn't matter where  you were from or who you were. You relied on one another. You did it for  your country. We all gain when we give and we reap what we sow. That's at  the heart of this New Covenant. Responsibility, opportunity and  citizenship.  
1995-204	1995	More than stale chapters in some remote civic book they're still the virtue  by which we can fulfill ourselves and reach our God-given potential and be  like them. And also to fulfill the eternal promise of this country, the  enduring dream from that first and most-sacred covenant. I believe every  person in this country still believes that we are created equal and given  by our creator the right to life, liberty and the pursuit of happiness.  
1995-205	1995	This is a very, very great country and our best days are still to come.  Thank you and God bless you all.  
1996-1	1996	Mr. Speaker, Mr. Vice President, members of the 104th Congress,  distinguished guests, my fellow Americans all across our land:  
1996-2	1996	Let me begin tonight by saying to our men and women in uniform around the  world, and especially those helping peace take root in Bosnia and to their  families, I thank you. America is very, very proud of you.  
1996-3	1996	My duty tonight is to report on the state of the Union--not the state of  our government, but of our American community; and to set forth our  responsibilities, in the words of our Founders, to form a more perfect  union.  
1996-4	1996	The state of the Union is strong. Our economy is the healthiest it has been  in three decades. We have the lowest combined rates of unemployment and  inflation in 27 years. We have created nearly 8 million new jobs, over a  million of them in basic industries, like construction and automobiles.  America is selling more cars than Japan for the first time since the 1970s.  And for three years in a row, we have had a record number of new businesses  started in our country.  
1996-5	1996	Our leadership in the world is also strong, bringing hope for new peace.  And perhaps most important, we are gaining ground in restoring our  fundamental values. The crime rate, the welfare and food stamp rolls, the  poverty rate and the teen pregnancy rate are all down. And as they go down,  prospects for America's future go up.  
1996-6	1996	We live in an age of possibility. A hundred years ago we moved from farm to  factory. Now we move to an age of technology, information, and global  competition. These changes have opened vast new opportunities for our  people, but they have also presented them with stiff challenges. While more  Americans are living better, too many of our fellow citizens are working  harder just to keep up, and they are rightly concerned about the security  of their families.  
1996-7	1996	The Role Of Government  
1996-8	1996	We must answer here three fundamental questions: First, how do we make the  American Dream of opportunity for all a reality for all Americans who are  willing to work for it? Second, how do we preserve our old and enduring  values as we move into the future? And, third, how do we meet these  challenges together, as one America?  
1996-9	1996	We know big government does not have all the answers. We know there's not a  program for every problem. We have worked to give the American people a  smaller, less bureaucratic government in Washington. And we have to give  the American people one that lives within its means.  
1996-10	1996	The era of big government is over. But we cannot go back to the time when  our citizens were left to fend for themselves. Instead, we must go forward  as one America, one nation working together to meet the challenges we face  together. Self-reliance and teamwork are not opposing virtues; we must have  both.  
1996-11	1996	I believe our new, smaller government must work in an old-fashioned  American way, together with all of our citizens through state and local  governments, in the workplace, in religious, charitable and civic  associations. Our goal must be to enable all our people to make the most of  their own lives--with stronger families, more educational opportunity,  economic security, safer streets, a cleaner environment in a safer world.  
1996-12	1996	To improve the state of our Union, we must ask more of ourselves, we must  expect more of each other, and we must face our challenges together.  
1996-13	1996	Here, in this place, our responsibility begins with balancing the budget in  a way that is fair to all Americans. There is now broad bipartisan  agreement that permanent deficit spending must come to an end.  
1996-14	1996	I compliment the Republican leadership and the membership for the energy  and determination you have brought to this task of balancing the budget.  And I thank the Democrats for passing the largest deficit reduction plan in  history in 1993, which has already cut the deficit nearly in half in three  years.  
1996-15	1996	Deficit  
1996-16	1996	Since 1993, we have all begun to see the benefits of deficit reduction.  Lower interest rates have made it easier for businesses to borrow and to  invest and to create new jobs. Lower interest rates have brought down the  cost of home mortgages, car payments and credit card rates to ordinary  citizens. Now, it is time to finish the job and balance the budget.  
1996-17	1996	Though differences remain among us which are significant, the combined  total of the proposed savings that are common to both plans is more than  enough, using the numbers from your Congressional Budget Office to balance  the budget in seven years and to provide a modest tax cut.  
1996-18	1996	These cuts are real. They will require sacrifice from everyone. But these  cuts do not undermine our fundamental obligations to our parents, our  children, and our future, by endangering Medicare, or Medicaid, or  education, or the environment, or by raising taxes on working families.  
1996-19	1996	I have said before, and let me say again, many good ideas have come out of  our negotiations. I have learned a lot about the way both Republicans and  Democrats view the debate before us. I have learned a lot about the good  ideas that we could all embrace.  
1996-20	1996	We ought to resolve our remaining differences. I am willing to work to  resolve them. I am ready to meet tomorrow. But I ask you to consider that  we should at least enact these savings that both plans have in common and  give the American people their balanced budget, a tax cut, lower interest  rates, and a brighter future. We should do that now, and make permanent  deficits yesterday's legacy.  
1996-21	1996	Now it is time for us to look also to the challenges of today and tomorrow,  beyond the burdens of yesterday. The challenges are significant. But  America was built on challenges, not promises. And when we work together to  meet them, we never fail. That is the key to a more perfect Union. Our  individual dreams must be realized by our common efforts.  
1996-22	1996	Tonight I want to speak to you about the challenges we all face as a  people.  
1996-23	1996	Strengthening Families  
1996-24	1996	Our first challenge is to cherish our children and strengthen America's  families. Family is the foundation of American life. If we have stronger  families, we will have a stronger America.  
1996-25	1996	Before I go on, I would like to take just a moment to thank my own family,  and to thank the person who has taught me more than anyone else over 25  years about the importance of families and children--a wonderful wife, a  magnificent mother and a great First Lady. Thank you, Hillary.  
1996-26	1996	All strong families begin with taking more responsibility for our children.  I have heard Mrs. Gore say that it's hard to be a parent today, but it's  even harder to be a child. So all of us, not just as parents, but all of us  in our other roles--our media, our schools, our teachers, our communities,  our churches and synagogues, our businesses, our governments--all of us  have a responsibility to help our children to make it and to make the most  of their lives and their God-given capacities.  
1996-27	1996	To the media, I say you should create movies and CDs and television shows  you'd want your own children and grandchildren to enjoy.  
1996-28	1996	I call on Congress to pass the requirement for a V-chip in TV sets so that  parents can screen out programs they believe are inappropriate for their  children. When parents control what their young children see, that is not  censorship; that is enabling parents to assume more personal responsibility  for their children's upbringing. And I urge them to do it. The V-chip  requirement is part of the important telecommunications bill now pending in  this Congress. It has bipartisan support, and I urge you to pass it now.  
1996-29	1996	To make the V-chip work, I challenge the broadcast industry to do what  movies have done--to identify your programming in ways that help parents  to protect their children. And I invite the leaders of major media  corporations in the entertainment industry to come to the White House next  month to work with us in a positive way on concrete ways to improve what  our children see on television. I am ready to work with you.  
1996-30	1996	I say to those who make and market cigarettes: every year a million  children take up smoking, even though it is against the law. Three hundred  thousand of them will have their lives shortened as a result. Our  administration has taken steps to stop the massive marketing campaigns that  appeal to our children. We are simply saying: Market your products to  adults, if you wish, but draw the line on children.  
1996-31	1996	I say to those who are on welfare, and especially to those who have been  trapped on welfare for a long time: For too long our welfare system has  undermined the values of family and work, instead of supporting them. The  Congress and I are near agreement on sweeping welfare reform. We agree on  time limits, tough work requirements, and the toughest possible child  support enforcement. But I believe we must also provide child care so that  mothers who are required to go to work can do so without worrying about  what is happening to their children.  
1996-32	1996	I challenge this Congress to send me a bipartisan welfare reform bill that  will really move people from welfare to work and do the right thing by our  children. I will sign it immediately.  
1996-33	1996	Let us be candid about this difficult problem. Passing a law, even the best  possible law, is only a first step. The next step is to make it work. I  challenge people on welfare to make the most of this opportunity for  independence. I challenge American businesses to give people on welfare the  chance to move into the work force. I applaud the work of religious groups  and others who care for the poor. More than anyone else in our society,  they know the true difficulty of the task before us, and they are in a  position to help. Every one of us should join them. That is the only way we  can make real welfare reform a reality in the lives of the American  people.  
1996-34	1996	To strengthen the family we must do everything we can to keep the teen  pregnancy rate going down. I am gratified, as I'm sure all Americans are,  that it has dropped for two years in a row. But we all know it is still far  too high.  
1996-35	1996	Tonight I am pleased to announce that a group of prominent Americans is  responding to that challenge by forming an organization that will support  grass-roots community efforts all across our country in a national campaign  against teen pregnancy. And I challenge all of us and every American to  join their efforts.  
1996-36	1996	I call on American men and women in families to give greater respect to one  another. We must end the deadly scourge of domestic violence in our  country. And I challenge America's families to work harder to stay  together. For families who stay together not only do better economically,  their children do better as well.  
1996-37	1996	In particular, I challenge the fathers of this country to love and care for  their children. If your family has separated, you must pay your child  support. We're doing more than ever to make sure you do, and we're going to  do more, but let's all admit something about that, too: A check will not  substitute for a parent's love and guidance. And only you--only you can  make the decision to help raise your children. No matter who you are, how  low or high your station in life, it is the most basic human duty of every  American to do that job to the best of his or her ability.  
1996-38	1996	Education  
1996-39	1996	Our second challenge is to provide Americans with the educational  opportunities we will all need for this new century. In our schools, every  classroom in America must be connected to the information superhighway,  with computers and good software, and well-trained teachers. We are working  with the telecommunications industry, educators and parents to connect 20  percent of California's classrooms by this spring, and every classroom and  every library in the entire United States by the year 2000. I ask Congress  to support this education technology initiative so that we can make sure  this national partnership succeeds.  
1996-40	1996	Every diploma ought to mean something. I challenge every community, every  school and every state to adopt national standards of excellence; to  measure whether schools are meeting those standards; to cut bureaucratic  red tape so that schools and teachers have more flexibility for grass-roots  reform; and to hold them accountable for results. That's what our Goals  2000 initiative is all about.  
1996-41	1996	I challenge every state to give all parents the right to choose which  public school their children will attend; and to let teachers form new  schools with a charter they can keep only if they do a good job.  
1996-42	1996	I challenge all our schools to teach character education, to teach good  values and good citizenship. And if it means that teenagers will stop  killing each other over designer jackets, then our public schools should be  able to require their students to wear school uniforms.  
1996-43	1996	I challenge our parents to become their children's first teachers. Turn off  the TV. See that the homework is done. And visit your children's classroom.  No program, no teacher, no one else can do that for you.  
1996-44	1996	My fellow Americans, higher education is more important today than ever  before. We've created a new student loan program that's made it easier to  borrow and repay those loans, and we have dramatically cut the student loan  default rate. That's something we should all be proud of, because it was  unconscionably high just a few years ago. Through AmeriCorps, our national  service program, this year 25,000 young people will earn college money by  serving their local communities to improve the lives of their friends and  neighbors. These initiatives are right for America and we should keep them  going.  
1996-45	1996	And we should also work hard to open the doors of college even wider. I  challenge Congress to expand work-study and help one million young  Americans work their way through college by the year 2000; to provide a  $1000 merit scholarship for the top five percent of graduates in every high  school in the United States; to expand Pell Grant scholarships for  deserving and needy students; and to make up to $10,000 a year of college  tuition tax deductible. It's a good idea for America.  
1996-46	1996	Our third challenge is to help every American who is willing to work for  it, achieve economic security in this new age. People who work hard still  need support to get ahead in the new economy. They need education and  training for a lifetime. They need more support for families raising  children. They need retirement security. They need access to health care.  More and more Americans are finding that the education of their childhood  simply doesn't last a lifetime.  
1996-47	1996	G.I. Bill For Workers  
1996-48	1996	So I challenge Congress to consolidate 70 overlapping, antiquated  job-training programs into a simple voucher worth $2,600 for unemployed or  underemployed workers to use as they please for community college tuition  or other training. This is a G.I. Bill for America's workers we should all  be able to agree on.  
1996-49	1996	More and more Americans are working hard without a raise. Congress sets the  minimum wage. Within a year, the minimum wage will fall to a 40-year low in  purchasing power. Four dollars and 25 cents an hour is no longer a living  wage, but millions of Americans and their children are trying to live on  it. I challenge you to raise their minimum wage.  
1996-50	1996	In 1993, Congress cut the taxes of 15 million hard-pressed working families  to make sure that no parents who work full-time would have to raise their  children in poverty, and to encourage people to move from welfare to work.  This expanded earned income tax credit is now worth about $1,800 a year to  a family of four living on $20,000. The budget bill I vetoed would have  reversed this achievement and raised taxes on nearly 8 million of these  people. We should not do that.  
1996-51	1996	I also agree that the people who are helped under this initiative are not  all those in our country who are working hard to do a good job raising  their children and at work. I agree that we need a tax credit for working  families with children. That's one of the things most of us in this  Chamber, I hope, can agree on. I know it is strongly supported by the  Republican majority. And it should be part of any final budget agreement.  
1996-52	1996	I want to challenge every business that can possibly afford it to provide  pensions for your employees. And I challenge Congress to pass a proposal  recommended by the White House Conference on Small Business that would make  it easier for small businesses and farmers to establish their own pension  plans. That is something we should all agree on.  
1996-53	1996	We should also protect existing pension plans. Two years ago, with  bipartisan support that was almost unanimous on both sides of the aisle, we  moved to protect the pensions of 8 million working people and to stabilize  the pensions of 32 million more. Congress should not now let companies  endanger those workers' pension funds. I know the proposal to liberalize  the ability of employers to take money out of pension funds for other  purposes would raise money for the treasury. But I believe it is false  economy. I vetoed that proposal last year, and I would have to do so  again.  
1996-54	1996	Health Care  
1996-55	1996	Finally, if our working families are going to succeed in the new economy,  they must be able to buy health insurance policies that they do not lose  when they change jobs or when someone in their family gets sick. Over the  past two years, over one million Americans in working families have lost  their health insurance. We have to do more to make health care available to  every American. And Congress should start by passing the bipartisan bill  sponsored by Senator Kennedy and Senator Kassebaum that would require  insurance companies to stop dropping people when they switch jobs, and stop  denying coverage for preexisting conditions. Let's all do that.  
1996-56	1996	And even as we enact savings in these programs, we must have a common  commitment to preserve the basic protections of Medicare and Medicaid--not  just to the poor, but to people in working families, including children,  people with disabilities, people with AIDS, and senior citizens in nursing  homes.  
1996-57	1996	In the past three years, we've saved $15 billion just by fighting health  care fraud and abuse. We have all agreed to save much more. We have all  agreed to stabilize the Medicare Trust Fund. But we must not abandon our  fundamental obligations to the people who need Medicare and Medicaid.  America cannot become stronger if they become weaker.  
1996-58	1996	The G.I. Bill for workers, tax relief for education and child rearing,  pension availability and protection, access to health care, preservation of  Medicare and Medicaid--these things, along with the Family and Medical  Leave Act passed in 1993--these things will help responsible, hard-working  American families to make the most of their own lives.  
1996-59	1996	But employers and employees must do their part, as well, as they are doing  in so many of our finest companies--working together, putting the  long-term prosperity ahead of the short-term gain. As workers increase  their hours and their productivity, employers should make sure they get the  skills they need and share the benefits of the good years, as well as the  burdens of the bad ones. When companies and workers work as a team they do  better, and so does America.  
1996-60	1996	Crime  
1996-61	1996	Our fourth great challenge is to take our streets back from crime and gangs  and drugs. At last we have begun to find a way to reduce crime, forming  community partnerships with local police forces to catch criminals and  prevent crime. This strategy, called community policing, is clearly  working. Violent crime is coming down all across America. In New York City  murders are down 25 percent; in St. Louis, 18 percent; in Seattle, 32  percent. But we still have a long way to go before our streets are safe and  our people are free from fear.  
1996-62	1996	The Crime Bill of 1994 is critical to the success of community policing. It  provides funds for 100,000 new police in communities of all sizes. We're  already a third of the way there. And I challenge the Congress to finish  the job. Let us stick with a strategy that's working and keep the crime  rate coming down.  
1996-63	1996	Community policing also requires bonds of trust between citizens and  police. I ask all Americans to respect and support our law enforcement  officers. And to our police, I say, our children need you as role models  and heroes. Don't let them down.  
1996-64	1996	The Brady Bill has already stopped 44,000 people with criminal records from  buying guns. The assault weapons ban is keeping 19 kinds of assault weapons  out of the hands of violent gangs. I challenge the Congress to keep those  laws on the books.  
1996-65	1996	Our next step in the fight against crime is to take on gangs the way we  once took on the mob. I'm directing the FBI and other investigative  agencies to target gangs that involve juveniles in violent crime, and to  seek authority to prosecute as adults teenagers who maim and kill like  adults.  
1996-66	1996	And I challenge local housing authorities and tenant associations: Criminal  gang members and drug dealers are destroying the lives of decent tenants.  From now on, the rule for residents who commit crime and peddle drugs  should be one strike and you're out.  
1996-67	1996	I challenge every state to match federal policy to assure that serious  violent criminals serve at least 85 percent of their sentence.  
1996-68	1996	More police and punishment are important, but they're not enough. We have  got to keep more of our young people out of trouble, with prevention  strategies not dictated by Washington, but developed in communities. I  challenge all of our communities, all of our adults, to give our children  futures to say yes to. And I challenge Congress not to abandon the Crime  Bill's support of these grass-roots prevention efforts.  
1996-69	1996	Finally, to reduce crime and violence we have to reduce the drug problem.  The challenge begins in our homes, with parents talking to their children  openly and firmly. It embraces our churches and synagogues, our youth  groups and our schools.  
1996-70	1996	I challenge Congress not to cut our support for drug-free schools. People  like the D.A.R.E. officers are making a real impression on grade  schoolchildren that will give them the strength to say no when the time  comes.  
1996-71	1996	Meanwhile, we continue our efforts to cut the flow of drugs into America.  For the last two years, one man in particular has been on the front lines  of that effort. Tonight I am nominating him--a hero of the Persian Gulf  War and the Commander in Chief of the United States Military Southern  Command--General Barry McCaffrey, as America's new Drug Czar.  
1996-72	1996	General McCaffrey has earned three Purple Hearts and two Silver Stars  fighting for this country. Tonight I ask that he lead our nation's battle  against drugs at home and abroad. To succeed, he needs a force far larger  than he has ever commanded before. He needs all of us. Every one of us has  a role to play on this team.  
1996-73	1996	Thank you, General McCaffrey, for agreeing to serve your country one more  time.  
1996-74	1996	Environment  
1996-75	1996	Our fifth challenge: to leave our environment safe and clean for the next  generation. Because of a generation of bipartisan effort we do have cleaner  water and air, lead levels in children's blood has been cut by 70 percent,  toxic emissions from factories cut in half. Lake Erie was dead, and now  it's a thriving resource. But 10 million children under 12 still live  within four miles of a toxic waste dump. A third of us breathe air that  endangers our health. And in too many communities, the water is not safe to  drink. We still have much to do.  
1996-76	1996	Yet Congress has voted to cut environmental enforcement by 25 percent. That  means more toxic chemicals in our water, more smog in our air, more  pesticides in our food. Lobbyists for polluters have been allowed to write  their own loopholes into bills to weaken laws that protect the health and  safety of our children. Some say that the taxpayer should pick up the tab  for toxic waste and let polluters who can afford to fix it off the hook. I  challenge Congress to reexamine those policies and to reverse them.  
1996-77	1996	This issue has not been a partisan issue. The most significant  environmental gains in the last 30 years were made under a Democratic  Congress and President Richard Nixon. We can work together. We have to  believe some basic things. Do you believe we can expand the economy without  hurting the environment? I do. Do you believe we can create more jobs over  the long run by cleaning the environment up? I know we can. That should be  our commitment.  
1996-78	1996	We must challenge businesses and communities to take more initiative in  protecting the environment, and we have to make it easier for them to do  it. To businesses this administration is saying: If you can find a cheaper,  more efficient way than government regulations require to meet tough  pollution standards, do it--as long as you do it right. To communities we  say: We must strengthen community right-to-know laws requiring polluters to  disclose their emissions, but you have to use the information to work with  business to cut pollution. People do have a right to know that their air  and their water are safe.  
1996-79	1996	Foreign Policy  
1996-80	1996	Our sixth challenge is to maintain America's leadership in the fight for  freedom and peace throughout the world. Because of American leadership,  more people than ever before live free and at peace. And Americans have  known 50 years of prosperity and security.  
1996-81	1996	We owe thanks especially to our veterans of World War II. I would like to  say to Senator Bob Dole and to all others in this Chamber who fought in  World War II, and to all others on both sides of the aisle who have fought  bravely in all our conflicts since: I salute your service, and so do the  American people.  
1996-82	1996	All over the world, even after the Cold War, people still look to us and  trust us to help them seek the blessings of peace and freedom. But as the  Cold War fades into memory, voices of isolation say America should retreat  from its responsibilities. I say they are wrong.  
1996-83	1996	The threats we face today as Americans respect no nation's borders. Think  of them: terrorism, the spread of weapons of mass destruction, organized  crime, drug trafficking, ethnic and religious hatred, aggression by rogue  states, environmental degradation. If we fail to address these threats  today, we will suffer the consequences in all our tomorrows.  
1996-84	1996	Of course, we can't be everywhere. Of course, we can't do everything. But  where our interests and our values are at stake, and where we can make a  difference, America must lead. We must not be isolationist.  
1996-85	1996	We must not be the world's policeman. But we can and should be the world's  very best peacemaker. By keeping our military strong, by using diplomacy  where we can and force where we must, by working with others to share the  risk and the cost of our efforts, America is making a difference for people  here and around the world. For the first time since the dawn of the nuclear  age, there is not a single Russian missile pointed at America's children.  
1996-86	1996	North Korea  
1996-87	1996	North Korea has now frozen its dangerous nuclear weapons program. In Haiti,  the dictators are gone, democracy has a new day, the flow of desperate  refugees to our shores has subsided. Through tougher trade deals for  America--over 80 of them--we have opened markets abroad, and now exports  are at an all-time high, growing faster than imports and creating good  American jobs.  
1996-88	1996	Northern Ireland  
1996-89	1996	We stood with those taking risks for peace: In Northern Ireland, where  Catholic and Protestant children now tell their parents, violence must  never return. In the Middle East, where Arabs and Jews who once seemed  destined to fight forever now share knowledge and resources, and even  dreams.  
1996-90	1996	Bosnia  
1996-91	1996	And we stood up for peace in Bosnia. Remember the skeletal prisoners, the  mass graves, the campaign to rape and torture, the endless lines of  refugees, the threat of a spreading war. All these threats, all these  horrors have now begun to give way to the promise of peace. Now, our troops  and a strong NATO, together with our new partners from Central Europe and  elsewhere, are helping that peace to take hold.  
1996-92	1996	As all of you know, I was just there with a bipartisan congressional group,  and I was so proud not only of what our troops were doing, but of the pride  they evidenced in what they were doing. They knew what America's mission in  this world is, and they were proud to be carrying it out.  
1996-93	1996	Through these efforts, we have enhanced the security of the American  people. But make no mistake about it: important challenges remain.  
1996-94	1996	Russia  
1996-95	1996	The START II Treaty with Russia will cut our nuclear stockpiles by another  25 percent. I urge the Senate to ratify it--now. We must end the race to  create new nuclear weapons by signing a truly comprehensive nuclear test  ban treaty--this year.  
1996-96	1996	As we remember what happened in the Japanese subway, we can outlaw poison  gas forever if the Senate ratifies the Chemical Weapons Convention--this  year. We can intensify the fight against terrorists and organized criminals  at home and abroad if Congress passes the anti-terrorism legislation I  proposed after the Oklahoma City bombing--now. We can help more people  move from hatred to hope all across the world in our own interest if  Congress gives us the means to remain the world's leader for peace.  
1996-97	1996	My fellow Americans, the six challenges I have just discussed are for all  of us. Our seventh challenge is really America's challenge to those of us  in this hallowed hall tonight: to reinvent our government and make our  democracy work for them.  
1996-98	1996	Reform  
1996-99	1996	Last year this Congress applied to itself the laws it applies to everyone  else. This Congress banned gifts and meals from lobbyists. This Congress  forced lobbyists to disclose who pays them and what legislation they are  trying to pass or kill. This Congress did that, and I applaud you for it.  
1996-100	1996	Now I challenge Congress to go further--to curb special interest influence  in politics by passing the first truly bipartisan campaign reform bill in a  generation. You, Republicans and Democrats alike, can show the American  people that we can limit spending and open the airwaves to all candidates.  
1996-101	1996	I also appeal to Congress to pass the line-item veto you promised the  American people.  
1996-102	1996	Our administration is working hard to give the American people a government  that works better and costs less. Thanks to the work of Vice President  Gore, we are eliminating 16,000 pages of unnecessary rules and regulations,  shifting more decision-making out of Washington, back to states and local  communities.  
1996-103	1996	As we move into the era of balanced budgets and smaller government, we must  work in new ways to enable people to make the most of their own lives. We  are helping America's communities, not with more bureaucracy, but with more  opportunities. Through our successful Empowerment Zones and Community  Development Banks, we are helping people to find jobs, to start businesses.  And with tax incentives for companies that clean up abandoned industrial  property, we can bring jobs back to places that desperately, desperately  need them.  
1996-104	1996	But there are some areas that the federal government should not leave and  should address and address strongly. One of these areas is the problem of  illegal immigration. After years of neglect, this administration has taken  a strong stand to stiffen the protection of our borders. We are increasing  border controls by 50 percent. We are increasing inspections to prevent the  hiring of illegal immigrants. And tonight, I announce I will sign an  executive order to deny federal contracts to businesses that hire illegal  immigrants.  
1996-105	1996	Let me be very clear about this: We are still a nation of immigrants; we  should be proud of it. We should honor every legal immigrant here, working  hard to become a new citizen. But we are also a nation of laws.  
1996-106	1996	I want to say a special word now to those who work for our federal  government. Today our federal government is 200,000 employees smaller than  it was the day I took office as President.  
1996-107	1996	Our federal government today is the smallest it has been in 30 years, and  it's getting smaller every day. Most of our fellow Americans probably don't  know that. And there is a good reason: The remaining federal work force is  composed of Americans who are now working harder and working smarter than  ever before, to make sure the quality of our services does not decline.  
1996-108	1996	I'd like to give you one example. His name is Richard Dean. He is a 49  year-old Vietnam veteran who's worked for the Social Security  Administration for 22 years now. Last year he was hard at work in the  Federal Building in Oklahoma City when the blast killed 169 people and  brought the rubble down all around him. He reentered that building four  times. He saved the lives of three women. He's here with us this evening,  and I want to recognize Richard and applaud both his public service and his  extraordinary personal heroism.  
1996-109	1996	But Richard Dean's story doesn't end there. This last November, he was  forced out of his office when the government shut down. And the second time  the government shut down he continued helping Social Security recipients,  but he was working without pay.  
1996-110	1996	On behalf of Richard Dean and his family, and all the other people who are  out there working every day doing a good job for the American people, I  challenge all of you in this Chamber: Never, ever shut the federal  government down again.  
1996-111	1996	On behalf of all Americans, especially those who need their Social Security  payments at the beginning of March, I also challenge the Congress to  preserve the full faith and credit of the United States--to honor the  obligations of this great nation as we have for 220 years; to rise above  partisanship and pass a straightforward extension of the debt limit and  show people America keeps its word.  
1996-112	1996	I know that this evening I have asked a lot of Congress, and even more from  America. But I am confident: When Americans work together in their homes,  their schools, their churches, their synagogues, their civic groups, their  workplace, they can meet any challenge.  
1996-113	1996	I say again, the era of big government is over. But we can't go back to the  era of fending for yourself. We have to go forward to the era of working  together as a community, as a team, as one America, with all of us reaching  across these lines that divide us--the division, the discrimination, the  rancor--we have to reach across it to find common ground. We have got to  work together if we want America to work.  
1996-114	1996	I want you to meet two more people tonight who do just that. Lucius Wright  is a teacher in the Jackson, Mississippi, public school system. A Vietnam  veteran, he has created groups to help inner-city children turn away from  gangs and build futures they can believe in. Sergeant Jennifer Rodgers is a  police officer in Oklahoma City. Like Richard Dean, she helped to pull her  fellow citizens out of the rubble and deal with that awful tragedy. She  reminds us that in their response to that atrocity the people of Oklahoma  City lifted all of us with their basic sense of decency and community.  
1996-115	1996	Lucius Wright and Jennifer Rodgers are special Americans. And I have the  honor to announce tonight that they are the very first of several thousand  Americans who will be chosen to carry the Olympic torch on its long journey  from Los Angeles to the centennial of the modern Olympics in Atlanta this  summer--not because they are star athletes, but because they are star  citizens, community heroes meeting America's challenges. They are our real  champions.  
1996-116	1996	Now, each of us must hold high the torch of citizenship in our own lives.  None of us can finish the race alone. We can only achieve our destiny  together--one hand, one generation, one American connecting to another.  
1996-117	1996	There have always been things we could do together--dreams we could make  real--which we could never have done on our own. We Americans have forged  our identity, our very union, from every point of view and every point on  the planet, every different opinion. But we must be bound together by a  faith more powerful than any doctrine that divides us--by our belief in  progress, our love of liberty, and our relentless search for common  ground.  
1996-118	1996	America has always sought and always risen to every challenge. Who would  say that, having come so far together, we will not go forward from here?  Who would say that this age of possibility is not for all Americans?  
1996-119	1996	Our country is and always has been a great and good nation. But the best is  yet to come, if we all do our part.  
1996-120	1996	Thank you, God bless you and God bless the United States of America. Thank  you.  
1997-1	1997	Mr. Speaker, Mr. Vice President, members of the 105th Congress,  distinguished guests, my fellow Americans:  
1997-2	1997	I think I should start by saying thanks for inviting me back.  
1997-3	1997	I come before you tonight with a challenge as great as any in our peacetime  history--and a plan of action to meet that challenge, to prepare our  people for the bold new world of the 21st century.  
1997-4	1997	We have much to be thankful for. With four years of growth, we have won  back the basic strength of our economy. With crime and welfare rolls  declining, we are winning back our optimism, the enduring faith that we can  master any difficulty. With the Cold War receding and global commerce at  record levels, we are helping to win an unrivaled peace and prosperity all  across the world.  
1997-5	1997	My fellow Americans, the state of our union is strong, but now we must rise  to the decisive moment, to make a nation and a world better than any we  have ever known.  
1997-6	1997	The new promise of the global economy, the Information Age, unimagined new  work, life-enhancing technology--all these are ours to seize. That is our  honor and our challenge. We must be shapers of events, not observers, for  if we do not act, the moment will pass and we will lose the best  possibilities of our future.  
1997-7	1997	We face no imminent threat, but we do have an enemy. The enemy of our time  is inaction.  
1997-8	1997	So tonight I issue a call to action--action by this Congress, action by  our states, by our people to prepare America for the 21st century; action  to keep our economy and our democracy strong and working for all our  people; action to strengthen education and harness the forces of technology  and science; action to build stronger families and stronger communities and  a safer environment; action to keep America the world's strongest force for  peace, freedom and prosperity; and above all, action to build a more  perfect union here at home.  
1997-9	1997	The spirit we bring to our work will make all the difference.  
1997-10	1997	We must be committed to the pursuit of opportunity for all Americans,  responsibility from all Americans in a community of all Americans. And we  must be committed to a new kind of government: not to solve all our  problems for us, but to give our people--all our people--the tools they  need to make the most of their own lives. And we must work together.  
1997-11	1997	The people of this nation elected us all. They want us to be partners, not  partisans. They put us all right here in the same boat. They gave us all  oars, and they told us to row. Now, here is the direction I believe we  should take.  
1997-12	1997	First, we must move quickly to complete the unfinished business of our  country: to balance the budget, renew our democracy, and finish the job of  welfare reform.  
1997-13	1997	Over the last four years we have brought new economic growth by investing  in our people, expanding our exports, cutting our deficits, creating over  11 million new jobs, a four-year record.  
1997-14	1997	Now we must keep our economy the strongest in the world. We here tonight  have an historic opportunity. Let this Congress be the Congress that  finally balances the budget. Thank you.  
1997-15	1997	In two days I will propose a detailed plan to balance the budget by 2002.  This plan will balance the budget and invest in our people while protecting  Medicare, Medicaid, education and the environment. It will balance the  budget and build on the vice president's efforts to make our government  work better--even as it costs less.  
1997-16	1997	It will balance the budget and provide middle-class tax relief to pay for  education and health care, to help to raise a child, to buy and sell a  home.  
1997-17	1997	Balancing the budget requires only your vote and my signature. It does not  require us to rewrite our Constitution. I believe, I believe it is both  unnecessary, unwise to adopt a balanced budget amendment that could cripple  our country in time of economic crisis and force unwanted results such as  judges halting Social Security checks or increasing taxes.  
1997-18	1997	Let us at least agree we should not pass any measure, no measure should be  passed that threatens Social Security. We don't need, whatever your view on  that, we all must concede we don't need a constitutional amendment, we need  action. Whatever our differences, we should balance the budget now, and  then, for the long-term health of our society, we must agree to a  bipartisan process to preserve Social Security and reform Medicare for the  long run, so that these fundamental programs will be as strong for our  children as they are for our parents.  
1997-19	1997	And let me say something that's not in my script tonight. I know this is  not going to be easy. But I really believe one of the reasons the American  people gave me a second term was to take the tough decisions in the next  four years that will carry our country through the next 50 years. I know it  is easier for me than for you to say or do. But another reason I was  elected is to support all of you, without regard to party, to give you what  is necessary to join in these decisions. We owe it to our country and to  our future.  
1997-20	1997	Our second piece of unfinished business requires us to commit ourselves  tonight, before the eyes of America, to finally enacting bipartisan  campaign finance reform.  
1997-21	1997	Now, Senators McCain and Feingold, Representatives Shays and Meehan have  reached across party lines here to craft tough and fair reform. Their  proposal would curb spending, reduce the role of special interests, create  a level playing field between challengers and incumbents, and ban  contributions from non-citizens, all corporate sources, and the other large  soft-money contributions that both parties receive.  
1997-22	1997	You know and I know that this can be delayed, and you know and I know that  delay will mean the death of reform.  
1997-23	1997	So let's set our own deadline. Let's work together to write bipartisan  campaign finance reform into law and pass McCain-Feingold by the day we  celebrate the birth of our democracy, July the 4th.  
1997-24	1997	There is a third piece of unfinished business. Over the last four years we  moved a record two and a quarter million people off the welfare roles. Then  last year Congress enacted landmark welfare reform legislation demanding  that all able-bodied recipients assume the responsibility of moving from  welfare to work. Now each and every one of us has to fulfill our  responsibility, indeed our moral obligation, to make sure that people who  now must work can work. And now we must act to meet a new goal: two million  more people off the welfare rolls by the year 2000.  
1997-25	1997	Here is my plan: Tax credits and other incentives for businesses that hire  people off welfare; Incentives for job placement firms in states to create  more jobs for welfare recipients; Training, transportation and child care  to help people go to work. Now I challenge every state--turn those welfare  checks into private sector paychecks. I challenge every religious  congregation, every community nonprofit, every business to hire someone off  welfare. And I'd like to say especially to every employer in our country  who ever criticized the old welfare system, you can't blame that old system  anymore; we have torn it down. Now, do your part. Give someone on welfare  the chance to go to work.  
1997-26	1997	Tonight I am pleased to announce that five major corporations--Sprint,  Monsanto, UPS, Burger King and United Airlines--will be the first to join  in a new national effort to marshal America's businesses large and small to  create jobs so that people can move from welfare to work.  
1997-27	1997	We passed welfare reform. All of you know I believe we were right to do it.  But no one can walk out of this chamber with a clear conscience unless you  are prepared to finish the job.  
1997-28	1997	And we must join together to do something else, too, something both  Republican and Democratic governors have asked us to do: to restore basic  health and disability benefits when misfortune strikes immigrants who came  to this country legally, who work hard, pay taxes, and obey the law. To do  otherwise is simply unworthy of a great nation of immigrants.  
1997-29	1997	Now, looking ahead, the greatest step of all, the high threshold to the  future we must now cross, and my number one priority for the next four  years, is to ensure that all Americans have the best education in the  world. Thank you.  
1997-30	1997	Let's work together to meet these three goals: every eight-year-old must be  able to read, every 12-year-old must be able to log on to the Internet,  every 18-year-old must be able to go to college, and every adult American  must be able to keep on learning for a lifetime.  
1997-31	1997	My balanced budget makes an unprecedented commitment to these goals--$51  billion next year--but far more than money is required. I have a plan, a  call to action for American education based on these 10 principles:  
1997-32	1997	First, a national crusade for education standards--not federal government  standards, but national standards, representing what all our students must  know to succeed in the knowledge economy of the 21st century. Every state  and school must shape the curriculum to reflect these standards and train  teachers to lift students up to them. To help schools meet the standards  and measure their progress, we will lead an effort over the next two years  to develop national tests of student achievement in reading and math.  
1997-33	1997	Tonight I issue a challenge to the nation. Every state should adopt high  national standards, and by 1999, every state should test every 4th grader  in reading and every 8th grader in math to make sure these standards are  met.  
1997-34	1997	Raising standards will not be easy, and some of our children will not be  able to meet them at first. The point is not to put our children down, but  to lift them up. Good tests will show us who needs help, what changes in  teaching to make, and which schools need to improve. They can help us end  social promotion, for no child should move from grade school to junior high  or junior high to high school until he or she is ready.  
1997-35	1997	Last month our secretary of education, Dick Riley, and I visited northern  Illinois, where 8th grade students from 20 school districts, in a project  aptly called First in the World, took the third International Math and  Science Study.  
1997-36	1997	That's a test that reflects the world-class standards our children must  meet for the new era. And those students in Illinois tied for first in the  world in science and came in second in math. Two of them, Kristen Tanner  and Chris Getsla, are here tonight along with their teacher, Sue Winski.  They're up there with the first lady, and they prove that when we aim high  and challenge our students, they will be the best in the world. Let's give  them a hand. Stand up, please.  
1997-37	1997	Second, to have the best schools, we must have the best teachers. Most of  us in this chamber would not be here tonight without the help of those  teachers. I know that I wouldn't be here.  
1997-38	1997	For years many of our educators, led by North Carolina's governor, Jim  Hunt, and the National Board for Professional Teaching Standards, have  worked very hard to establish nationally accepted credentials for  excellence in teaching.  
1997-39	1997	Just 500 of these teachers have been certified since 1995. My budget will  enable 100,000 more to seek national certification as master teachers. We  should reward and recognize our best teachers. And as we reward them, we  should quickly and fairly remove those few who don't measure up, and we  should challenge more of our finest young people to consider teaching as a  career.  
1997-40	1997	Third, we must do more to help all our children read. Forty percent--40  percent--of our 8-year-olds cannot read on their own. That's why we have  just launched the America Reads initiative, to build a citizen army of one  million volunteer tutors to make sure every child can read independently by  the end of the 3rd grade. We will use thousands of AmeriCorps volunteers to  mobilize this citizen army. We want at least 100,000 college students to  help.  
1997-41	1997	And tonight I'm pleased that 60 college presidents have answered my call,  pledging that thousands of their work-study students will serve for one  year as reading tutors.  
1997-42	1997	This is also a challenge to every teacher and every principal.  
1997-43	1997	You must use these tutors to help your students read. And it is especially  a challenge to our parents. You must read with your children every night.  
1997-44	1997	This leads to the fourth principle: Learning begins in the first days of  life. Scientists are now discovering how young children develop emotionally  and intellectually from their very first days and how important it is for  parents to begin immediately talking, singing, even reading to their  infants. The first lady has spent years writing about this issue, studying  it. And she and I are going to convene a White House conference on early  learning and the brain this spring to explore how parents and educators can  best use these startling new findings.  
1997-45	1997	We already know we should start teaching children before they start school.  That's why this balanced budget expands Head Start to one million children  by 2002. And that is why the vice president and Mrs. Gore will host their  annual family conference this June on what we can do to make sure that  parents are an active part of their children's learning all the way through  school.  
1997-46	1997	They've done a great deal to highlight the importance of family in our  life, and now they're turning their attention to getting more parents  involved in their children's learning all the way through school. I thank  you, Mr. Vice President, and I thank you especially, Tipper, for what  you're doing.  
1997-47	1997	Fifth, every state should give parents the power to choose the right public  school for their children. Their right to choose will foster competition  and innovation that can make public schools better. We should also make it  possible for more parents and teachers to start charter schools, schools  that set and meet the highest standards and exist only as long as they do.  
1997-48	1997	Our plan will help America to create 3,000 of these charter schools by the  next century, nearly seven times as there are in the country today, so that  parents will have even more choices in sending their children to the best  schools.  
1997-49	1997	Sixth, character education must be taught in our schools. We must teach our  children to be good citizens. And we must continue to promote order and  discipline; supporting communities that introduce school uniforms, impose  curfews, enforce truancy laws, remove disruptive students from the  classroom, and have zero tolerance for guns and drugs in schools.  
1997-50	1997	Seventh, we cannot expect our children to raise themselves up in schools  that are literally falling down. With the student population at an all-time  high, and record numbers of school buildings falling into disrepair, this  has now become a serious national concern. Therefore, my budget includes a  new initiative: $5 billion to help communities finance $20 billion in  school construction over the next four years.  
1997-51	1997	Eighth, we must make the 13th and 14th years of education--at least two  years of college--just as universal in America by the 21st century as a  high school education is today, and we must open the doors of college to  all Americans.  
1997-52	1997	To do that, I propose America's Hope Scholarship, based on Georgia's  pioneering program--two years of a $1,500 tax credit for college tuition,  enough to pay for the typical community college. I also propose a tax  deduction of up to $10,000 a year for all tuition after high school, an  expanded IRA you can withdraw from tax free for education, and the largest  increase in Pell Grant scholarship in 20 years.  
1997-53	1997	Now this plan will give most families the ability to pay no taxes on money  they save for college tuition. I ask you to pass it and give every American  who works hard the chance to go to college.  
1997-54	1997	Ninth, in the 21st century we must expand the frontiers of learning across  a lifetime. All our people, of whatever age, must have the chance to learn  new skills.  
1997-55	1997	Most Americans live near a community college. The roads that take them  there can be paths to a better future. My GI bill for America's workers  will transform the confusing tangle of federal training programs into a  simple skill grant to go directly into eligible workers' hands.  
1997-56	1997	For too long this bill has been sitting on that desk there, without action.  I ask you to pass it now. Let's give more of our workers the ability to  learn and to earn for a lifetime.  
1997-57	1997	Tenth, we must bring the power of the Information Age into all our  schools.  
1997-58	1997	Last year I challenged America to connect every classroom and library to  the Internet by the year 2000, so that for the first time in our history,  children in the most isolated rural town, the most comfortable suburbs, the  poorest inner-city schools will have the same access to the same universe  of knowledge.  
1997-59	1997	That is my plan--a call to action for American education. Some may say  that it is unusual for a president to pay this kind of attention to  education. Some may say it is simply because the president and his  wonderful wife have been obsessed with this subject for more years than  they can recall. That is not what is driving these proposals. We must  understand the significance of this endeavor.  
1997-60	1997	One of the greatest sources of our strength throughout the Cold War was a  bipartisan foreign policy. Because our future was at stake, politics  stopped at the water's edge. Now I ask you, and I ask all our nation's  governors, I ask parents, teachers and citizens all across America, for a  new nonpartisan commitment to education, because education is a critical  national security issue for our future and politics must stop at the  schoolhouse door.  
1997-61	1997	To prepare America for the 21st century, we must harness the powerful  forces of science and technology to benefit all Americans. This is the  first State of the Union carried live in video over the Internet, but we've  only begun to spread the benefits of a technology revolution that should  become the modern birthright of every citizen.  
1997-62	1997	Our effort to connect every classroom is just the beginning. Now we should  connect every hospital to the Internet so that doctors can instantly share  data about their patients with the best specialists in the field.  
1997-63	1997	And I challenge the private sector tonight to start by connecting every  children's hospital as soon as possible so that a child in bed can stay in  touch with school, family and friends. A sick child need no longer be a  child alone.  
1997-64	1997	We must build the second generation of the Internet so that our leading  universities and national laboratories can communicate in speeds a thousand  times faster than today to develop new medical treatments, new sources of  energy, new ways of working together. But we cannot stop there.  
1997-65	1997	As the Internet becomes our new town square, a computer in every home: a  teacher of all subjects, a connection to all cultures. This will no longer  be a dream, but a necessity. And over the next decade, that must be our  goal.  
1997-66	1997	We must continue to explore the heavens, pressing on with the Mars probes  and the International Space Station, both of which will have practical  applications for our everyday living.  
1997-67	1997	We must speed the remarkable advances in medical science. The human genome  project is now decoding the genetic mysteries of life. American scientists  have discovered genes linked to breast cancer and ovarian cancer and  medication that stops a stroke in progress and begins to reverse its  effects, and treatments that dramatically lengthen the lives of people with  HIV and AIDS.  
1997-68	1997	Since I took office, funding for AIDS research at the National Institutes  of Health has increased dramatically to $1.5 billion. With new resources,  NIH will now become the most powerful discovery engine for an AIDS vaccine,  working with other scientists, to finally end the threat of AIDS. Thank  you. Remember that every year, every year we move up the discovery of an  AIDS vaccine we'll save millions of lives around the world. We must  reinforce our commitment to medical science.  
1997-69	1997	To prepare America for the 21st century we must build stronger families.  Over the past four years the Family and Medical Leave Law has helped  millions of Americans to take time off to be with their families.  
1997-70	1997	With new pressures on people and the way they work and live, I believe we  must expand family leave so that workers can take time off for teacher  conferences and a child's medical checkup. We should pass flex time so  workers can choose to be paid for overtime in income or trade it in for  time off to be with their families.  
1997-71	1997	We must continue--we must continue, step by step, to give more families  access to affordable quality health care. Forty million Americans still  lack health insurance. Ten million children still lack health insurance.  Eighty percent of them have working parents who pay taxes. That is wrong.  
1997-72	1997	My--my balanced budget will extend health coverage to up to 5 million of  those children. Since nearly half of all children who lose their insurance  do so because their parents lose or change a job, my budget will also  ensure that people who temporarily lose their jobs can still afford to keep  their health insurance. No child should be without a doctor just because a  parent is without a job.  
1997-73	1997	My Medicare plan modernizes Medicare, increases the life of the trust fund  to 10 years, provides support for respite care for the many families with  loved ones afflicted with Alzheimer's, and, for the first time, it would  fully pay for annual mammograms.  
1997-74	1997	Just as we ended drive-through deliveries of babies last year, we must now  end the dangerous and demeaning practice of forcing women home from the  hospital only hours after a mastectomy.  
1997-75	1997	I ask your support for bipartisan legislation to guarantee that a woman can  stay in the hospital for 48 hours after a mastectomy. With us tonight is  Dr. Kristen Zarfos, a Connecticut surgeon whose outrage at this practice  spurred a national movement and inspired this legislation. I'd like her to  stand so we can thank her for her efforts. Dr. Zarfos, thank you.  
1997-76	1997	In the last four years, we have increased child support collections by 50  percent. Now we should go further and do better by making it a felony for  any parent to cross a state line in an attempt to flee from this, his or  her most sacred obligation.  
1997-77	1997	Finally, we must also protect our children by standing firm in our  determination to ban the advertising and marketing of cigarettes that  endanger their lives.  
1997-78	1997	To prepare America for the 21st century, we must build stronger  communities. We should start with safe streets. Serious crime has dropped  five years in a row. The key has been community policing. We must finish  the job of putting 100,000 community police on the streets of the United  States.  
1997-79	1997	We should pass the Victims' Rights Amendment to the Constitution, and I ask  you to mount a full-scale assault on juvenile crime, with legislation that  declares war on gangs with new prosecutors and tougher penalties, extends  the Brady bill so violent teen criminals will not be able to buy handguns,  requires child safety locks on handguns to prevent unauthorized use, and  helps to keep our schools open after hours, on weekends and in the summer  so our young people will have someplace to go and something to say yes to.  
1997-80	1997	This balanced budget includes the largest anti-drug effort ever--to stop  drugs at their source; punish those who push them; and teach our young  people that drugs are wrong, drugs are illegal, and drugs will kill them. I  hope you will support it.  
1997-81	1997	Our growing economy has helped to revive poor urban and rural  neighborhoods, but we must do more to empower them to create the conditions  in which all families can flourish and to create jobs through investment by  business and loans by banks.  
1997-82	1997	We should double the number of empowerment zones. They've already brought  so much hope to communities like Detroit, where the unemployment rate has  been cut in half in four years. We should restore contaminated urban land  and buildings to constructive use. We should expand the network of  community development banks.  
1997-83	1997	And together, we must pledge tonight that we will use this empowerment  approach, including private sector tax incentives, to renew our capital  city so that Washington is a great place to work and live--and once again  the proud face America shows the world!  
1997-84	1997	We must protect our environment in every community. In the last four years,  we cleaned up 250 toxic waste sites, as many as in the previous 12. Now we  should clean up 500 more so that our children grow up next to parks, not  poison. I urge to pass my proposal to make big polluters live by a simple  rule: If you pollute our environment, you should pay to clean it up.  
1997-85	1997	In the last four years, we strengthened our nation's safe food and clean  drinking water laws; we protected some of America's rarest, most beautiful  land in Utah's Red Rocks region; created three new national parks in the  California desert; and began to restore the Florida Everglades.  
1997-86	1997	Now we must be as vigilant with our rivers as we are with our lands.  Tonight I announce that this year I will designate 10 American Heritage  Rivers to help communities alongside them revitalize their waterfronts and  clean up pollution in the rivers, proving once again that we can grow the  economy as we protect the environment.  
1997-87	1997	We must also protect our global environment, working to ban the worst toxic  chemicals and to reduce the greenhouse gases that challenge our health even  as they change our climate.  
1997-88	1997	Now, we all know that in all of our communities some of our children simply  don't have what they need to grow and learn in their own homes or schools  or neighborhoods. And that means the rest of us must do more, for they are  our children, too. That's why President Bush, General Colin Powell, former  Housing Secretary Henry Cisneros will join the vice president and me to  lead the President's Summit of Service in Philadelphia in April.  
1997-89	1997	Our national service program, AmeriCorps, has already helped 70,000 young  people to work their way through college as they serve America. Now we  intend to mobilize millions of Americans to serve in thousands of ways.  Citizen service is an American responsibility which all Americans should  embrace. And I ask your support for that endeavor.  
1997-90	1997	I'd like to make just one last point about our national community. Our  economy is measured in numbers and statistics. And it's very important. But  the enduring worth of our nation lies in our shared values and our soaring  spirit. So instead of cutting back on our modest efforts to support the  arts and humanities I believe we should stand by them and challenge our  artists, musicians, and writers, challenge our museums, libraries, and  theaters.  
1997-91	1997	We should challenge all Americans in the arts and humanities to join with  their fellow citizens to make the year 2000 a national celebration of the  American spirit in every community, a celebration of our common culture in  the century that is past and in the new one to come in a new millennium so  that we can remain the world's beacon not only of liberty but of creativity  long after the fireworks have faded.  
1997-92	1997	To prepare America for the 21st century we must master the forces of change  in the world and keep American leadership strong and sure for an uncharted  time.  
1997-93	1997	Fifty years ago, a farsighted America led in creating the institutions that  secured victory in the Cold War and built a growing world economy. As a  result, today more people than ever embrace our ideals and share our  interests. Already we have dismantled many of the blocks and barriers that  divided our parents' world. For the first time, more people live under  democracy than dictatorship including every nation in our own hemisphere  but one, and its day, too, will come.  
1997-94	1997	Now we stand at another moment of change and choice, and another time to be  farsighted, to bring America 50 more years of security and prosperity.  
1997-95	1997	In this endeavor, our first task is to help to build for the very first  time an undivided, democratic Europe. When Europe is stable, prosperous,  and at peace, America is more secure.  
1997-96	1997	To that end, we must expand NATO by 1999, so that countries that were once  our adversaries can become our allies. At the special NATO summit this  summer, that is what we will begin to do. We must strengthen NATO's  Partnership for Peace with non-member allies. And we must build a stable  partnership between NATO and a democratic Russia.  
1997-97	1997	An expanded NATO is good for America, and a Europe in which all democracies  define their future not in terms of what they can do to each other, but in  terms of what they can do together for the good of all--that kind of  Europe is good for America.  
1997-98	1997	Second, America must look to the East no less than to the West.  
1997-99	1997	Our security demands it. Americans fought three wars in Asia in this  century.  
1997-100	1997	Our prosperity requires it. More than 2 million American jobs depend upon  trade with Asia. There, too, we are helping to shape an Asia Pacific  community of cooperation, not conflict.  
1997-101	1997	Let our--let our progress there not mask the peril that remains. Together  with South Korea, we must advance peace talks with North Korea and bridge  the Cold War's last divide. And I call on Congress to fund our share of the  agreement under which North Korea must continue to freeze and then  dismantle its nuclear weapons program.  
1997-102	1997	We must pursue a deeper dialogue with China for the sake of our interests  and our ideals. An isolated China is not good for America. A China playing  its proper role in the world is. I will go to China, and I have invited  China's president to come here, not because we agree on everything, but  because engaging China is the best way to work on our common challenges,  like ending nuclear testing, and to deal frankly with our fundamental  differences, like human rights.  
1997-103	1997	The American people must prosper in the global economy. We've worked hard  to tear down trade barriers abroad so that we can create good jobs at home.  I'm proud to say that today America is once again the most competitive  nation and the No. 1 exporter in the world.  
1997-104	1997	Now we must act to expand our exports, especially to Asia and Latin  America, two of the fastest-growing regions on earth, or be left behind as  these emerging economies forge new ties with other nations. That is why we  need the authority now to conclude new trade agreements that open markets  to our goods and services even as we preserve our values.  
1997-105	1997	We need not shrink from the challenge of the global economy. After all, we  have the best workers and the best products. In a truly open market, we can  out-compete anyone, anywhere on earth.  
1997-106	1997	But this is about more than economics. By expanding trade, we can advance  the cause of freedom and democracy around the world. There is no better  example of this truth than Latin America where democracy and open markets  are on the march together. That is why I will visit there in the spring to  reinforce our important ties.  
1997-107	1997	We should all be proud that America led the effort to rescue our neighbor,  Mexico, from its economic crisis. And we should all be proud that last  month Mexico repaid the United States, three full years ahead of schedule,  with half a billion dollar profit to us.  
1997-108	1997	America must continue to be an unrelenting force for peace. From the Middle  East to Haiti, from Northern Ireland to Africa, taking reasonable risks for  peace keeps us from being drawn into far more costly conflicts later. With  American leadership, the killing has stopped in Bosnia. Now the habits of  peace must take hold.  
1997-109	1997	The new NATO force will allow reconstruction and reconciliation to  accelerate. Tonight I ask Congress to continue its strong support of our  troops. They are doing a remarkable job there for America, and America must  do right by them.  
1997-110	1997	Fifth, we must move strongly against new threats to our security. In the  past four years, we agreed to ban--we led the way to a worldwide agreement  to ban nuclear testing.  
1997-111	1997	With Russia, we dramatically cut nuclear arsenals and we stopped targeting  each other's citizens. We are acting to prevent nuclear materials from  falling into the wrong hands, and to rid the world of land mines.  
1997-112	1997	We are working with other nations with renewed intensity to fight drug  traffickers and to stop terrorists before they act and hold them fully  accountable if they do.  
1997-113	1997	Now we must rise to a new test of leadership--ratifying the Chemical  Weapons Convention. Make no mistake about it, it will make our troops safer  from chemical attack. It will help us to fight terrorism. We have no more  important obligations, especially in the wake of what we now know about the  Gulf War.  
1997-114	1997	This treaty has been bipartisan from the beginning, supported by Republican  and Democratic administrations, and Republican and Democratic members of  Congress, and already approved by 68 nations. But if we do not act by April  the 29th, when this convention goes into force--with or without us--we  will lose the chance to have Americans leading and enforcing this effort.  Together we must make the Chemical Weapons Convention law so that at last  we can begin to outlaw poisoned gas from the earth.  
1997-115	1997	Finally, we must have the tools to meet all these challenges. We must  maintain a strong and ready military. We must increase funding for weapons  modernization by the year 2000. And we must take good care of our men and  women in uniform. They are the world's finest.  
1997-116	1997	We must also renew our commitment to America's diplomacy and pay our debts  and dues to international financial institutions like the World Bank--and  to a reforming United Nations. Every dollar--every dollar we devote to  preventing conflicts, to promoting democracy, to stopping the spread of  disease and starvation brings a sure return in security and savings. Yet  international affairs spending today is just 1 percent of the federal  budget, a small fraction of what America invested in diplomacy to choose  leadership over escapism at the start of the cold war.  
1997-117	1997	If America is to continue to lead the world, we here who lead America  simply must find the will to pay our way. A farsighted America moved the  world to a better place over these last 50 years. And so it can be for  another 50 years. But a shortsighted America will soon find its words  falling on deaf ears all around the world.  
1997-118	1997	Almost exactly 50 years ago in the first winter of the Cold War President  Truman stood before a Republican Congress and called upon our country to  meet its responsibilities of leadership. This was his warning. He said, "If  we falter, we may endanger the peace of the world, and we shall surely  endanger the welfare of this nation."  
1997-119	1997	That Congress, led by Republicans like Senator Arthur Vandenburg, answered  President Truman's call. Together, they made the commitments that  strengthened our country for 50 years. Now let us do the same. Let us do  what it takes to remain the indispensable nation, to keep America strong,  secure and prosperous for another 50 years.  
1997-120	1997	In the end, more than anything else, our world leadership grows out of the  power of our example here at home, out of our ability to remain strong as  one America.  
1997-121	1997	All over the world people are being torn asunder by racial, ethnic and  religious conflicts that fuel fanaticism and terror. We are the world's  most diverse democracy, and the world looks to us to show that it is  possible to live and advance together across those kinds of differences.  America has always been a nation of immigrants.  
1997-122	1997	From the start, a steady stream of people in search of freedom and  opportunity have left their own lands to make this land their home. We  started as an experiment in democracy fueled by Europeans. We have grown  into an experiment in democratic diversity fueled by openness and promise.  
1997-123	1997	My fellow Americans, we must never, ever believe that our diversity is a  weakness; it is our greatest strength.  
1997-124	1997	Americans speak every language, know every country. People on every  continent can look to us and see the reflection of their own great  potential, and they always will, as long as we strive to give all our  citizens, whatever their background, an opportunity to achieve their own  greatness.  
1997-125	1997	We're not there yet. We still see evidence of a biting bigotry and  intolerance in ugly words and awful violence, in burned churches and bombed  buildings. We must fight against this in our country and in our hearts.  
1997-126	1997	Just a few days before my second inauguration, one of our country's  best-known pastors, Reverend Robert Schuller, suggested that I read Isaiah  58:12. Here's what it says: "Thou shalt raise up the foundations of many  generations, and thou shalt be called the repairer of the breach, the  restorer of paths to dwell in."  
1997-127	1997	I placed my hand on that verse when I took the oath of office, on behalf of  all Americans, for no matter what our differences in our faiths, our  backgrounds, our politics, we must all be repairers of the breach.  
1997-128	1997	I want to say a word about two other Americans who show us how. Congressman  Frank Tejeda was buried yesterday, a proud American whose family came from  Mexico. He was only 51 years old. He was awarded the Silver Star, the  Bronze Star and the Purple Heart fighting for his country in Vietnam. And  he went on to serve Texas and America fighting for our future here in this  chamber.  
1997-129	1997	We are grateful for his service and honored that his mother, Lillie Tejeda,  and his sister, Mary Alice, have come from Texas to be with us here  tonight. And we welcome you. Thank you.  
1997-130	1997	Gary Locke, the newly-elected governor of Washington state, is the first  Chinese-American governor in the history of our country. He's the proud son  of two of the millions of Asian American immigrants who strengthened  America with their hard work, family values and good citizenship.  
1997-131	1997	He represents the future we can all achieve. Thank you, governor, for being  here. Please stand up.  
1997-132	1997	Reverend Schuller, Congressman Tejeda, Governor Locke, along with Kristen  Tanner and Chris Getsla, Sue Winski and Dr. Kristen Zarfos--they're all  Americans from different roots whose lives reflect the best of what we can  become when we are one America.  
1997-133	1997	We may not share a common past, but we surely do share a common future.  Building one America is our most important mission, the foundation for many  generations of every other strength we must build for this new century.  Money cannot buy it, power cannot compel it, technology cannot create it.  It can only come from the human spirit.  
1997-134	1997	America is far more than a place; it is an idea--the most powerful idea in  the history of nations, and all of us in this chamber, we are now the  bearers of that idea, leading a great people into a new world.  
1997-135	1997	A child born tonight will have almost no memory of the 20th century.  Everything that child will know about America will be because of what we do  now to build a new century. We don't have a moment to waste.  
1997-136	1997	Tomorrow there will be just over 1,000 days until the year 2000. One  thousand days to prepare our people. One thousand days to work together.  One thousand days to build a bridge to a land of new promise.  
1997-137	1997	My fellow Americans, we have work to do. Let us seize those days and the  century.  
1997-138	1997	Thank you. God bless you. And God bless America.  
1998-1	1998	Mr. Speaker, Mr. Vice President, members of the 105th Congress,  distinguished guests, my fellow Americans:  
1998-2	1998	Since the last time we met in this chamber, America has lost two patriots  and fine public servants. Though they sat on opposite sides of the aisle,  Representatives Walter Capps and Sonny Bono shared a deep love for this  House and an unshakable commitment to improving the lives of all our  people.  
1998-3	1998	In the past few weeks, they have both been eulogized. Tonight, I think we  should begin by sending a message to their families and their friends that  we celebrate their lives, and give thanks for their service to our nation.  
1998-4	1998	For 209 years, it has been the president's duty to report to you on the  state of the union. Because of the hard work and high purpose of the  American people, these are good times for America. We have more than 14  million new jobs, the lowest unemployment in 24 years, the lowest core  inflation in 30 years, incomes are rising and we have the highest home  ownership in history. Crime has dropped for a record five years in a row,  and the welfare rolls are at their lowest levels in 27 years. Our  leadership in the world is unrivaled. Ladies and gentlemen, the state of  our union is strong.  
1998-5	1998	But with barely 700 days left in the 20th century, this is not a time to  rest. It is a time to build--to build the America within reach, an America  where everybody has a chance to get ahead, with hard work; where every  citizen can live in a safe community; where families are strong, schools  are good, and all our young people can go on to college; an America where  scientists find cures for diseases from diabetes to Alzheimer's to AIDS; an  America where every child can stretch a hand across a keyboard and reach  every book ever written, every painting ever painted, every symphony ever  composed; where government provides opportunity and citizens honor the  responsibility to give something back to their communities; an America  which leads the world to new heights of peace and prosperity.  
1998-6	1998	This is the America we have begun to build. This is the America we can  leave to our children--if we join together to finish the work at hand. Let  us strengthen our nation for the 21st century.  
1998-7	1998	Rarely have Americans lived through so much change in so many ways in so  short a time. Quietly, but with gathering force, the ground has shifted  beneath our feet as we have moved into an information age, a global  economy, a truly new world.  
1998-8	1998	For five years now, we have met the challenge of these changes as Americans  have at every turning point in our history, by renewing the very idea of  America, widening the circle of opportunity, deepening the meaning of our  freedom, forging a more perfect union. We shaped a new kind of government  for the information age. I thank the vice president for his leadership, and  the Congress for its support, in building a government that is leaner, more  flexible, a catalyst for new ideas, and most of all, a government that  gives the American people the tools they need to make the most of their own  lives.  
1998-9	1998	We have moved past the sterile debate between those who say government is  the enemy and those who say government is the answer. My fellow Americans,  we have found a third way. We have the smallest government in 35 years, but  a more progressive one. We have a smaller government but a stronger  nation.  
1998-10	1998	We are moving steadily toward a an even stronger America in the 21st  century--an economy that offers opportunity, a society rooted in  responsibility, and a nation that lives as a community.  
1998-11	1998	First, Americans in this chamber and across this nation have pursued a new  strategy for prosperity: fiscal discipline to cut interest rates and spur  growth; investments in education and skills, in science and technology and  transportation, to prepare our people for the new economy; new markets for  American products and American workers.  
1998-12	1998	When I took office, the deficit for 1998 was projected to be $357 billion,  and heading higher. This year, our deficit is projected to be $10 billion,  and heading lower.  
1998-13	1998	For three decades, six presidents have come before you to warn of the  damage deficits pose to our nation. Tonight, I come before you to announce  that the federal deficit, once so incomprehensively large that it had 11  zeros, will be simply zero.  
1998-14	1998	I will submit to Congress, for 1999, the first balanced budget in 30  years.  
1998-15	1998	And if we hold fast to fiscal discipline, we may balance the budget this  year--four years ahead of schedule.  
1998-16	1998	You can all be proud of that, because turning a sea of red ink into black  is no miracle. It is the product of hard work by the American people, and  of two visionary actions in Congress: The courageous vote in 1993 that led  to a cut in the deficit of 90 percent and the truly historic bipartisan  balanced budget agreement passed by this Congress.  
1998-17	1998	Here's the really good news: If we maintain our resolve, we will produce  balanced budgets as far as the eye can see.  
1998-18	1998	We must not go back to unwise spending or untargeted tax cuts that risk  reopening the deficit. Last year, together, we enacted targeted tax cuts so  that the typical middle class family will now have the lowest tax rates in  20 years.  
1998-19	1998	My plan to balance the budget next year includes both new investments and  new tax cuts targeted to the needs of working families: for education, for  child care, for the environment.  
1998-20	1998	But whether the issue is tax cuts or spending, I ask all of you to meet  this test: approve only those priorities that can actually be accomplished  without adding a dime to the deficit.  
1998-21	1998	Now, if we balance the budget for next year, it is projected that we'll  then have a sizeable surplus in the years that immediately follow. What  should we do with this projected surplus?  
1998-22	1998	I have a simple four-word answer: Save Social Security first.  
1998-23	1998	Tonight, I propose that we reserve 100 percent of the surplus--that's  every penny of any surplus--until we have taken all the necessary measures  to strengthen the Social Security system for the 21st century.  
1998-24	1998	Let us say--let us say to all Americans watching tonight, whether you're  70 or 50, or whether you just started paying into the system, Social  Security will be there when you need it. Let us make this commitment:  Social Security first. Let's do that--together.  
1998-25	1998	I also want to say that all the American people who are watching us tonight  should be invited to join in this discussion, in facing these issues  squarely and forming a true consensus on how we should proceed. We'll start  by conducting nonpartisan forums in every region of the country, and I hope  that lawmakers of both parties will participate. We'll hold a White House  conference on Social Security in December. And one year from now, I will  convene the leaders of Congress to craft historic bipartisan legislation to  achieve a landmark for our generation, a Social Security system that is  strong in the 21st century.  
1998-26	1998	In an economy that honors opportunity, all Americans must be able to reap  the rewards of prosperity. Because these times are good, we can afford to  take one simple, sensible step to help millions of workers struggling to  provide for their families. We should raise the minimum wage.  
1998-27	1998	The information age is first and foremost an education age, in which  education will start at birth and continue throughout a lifetime. Last  year, from this podium, I said that education has to be our highest  priority. I laid out a 10-point plan to move us forward, and urged all of  us to let politics stop at the schoolhouse door.  
1998-28	1998	Since then, this Congress--across party lines--and the American people  have responded, in the most important year for education in a generation--  expanding public school choice, opening the way to 3,000 charter schools,  working to connect every classroom in the country to the information  superhighway, committing to expand Head Start to a million children,  launching America Reads, sending literally thousands of college students  into our elementary schools to make sure all our 8-year-olds can read.  
1998-29	1998	Last year I proposed--and you passed--220,000 new Pell Grant scholarships  for deserving students. Student loans, already less expensive and easier to  repay--now you get to deduct the interest. Families all over America now can  put their savings into new, tax-free education IRAs.  
1998-30	1998	And this year, for the first two years of college, families will get a  $1500 tax credit--a Hope Scholarship that will cover the cost of most  community college tuition. And for junior and senior year, graduate school,  and job training, there is a lifetime learning credit. You did that, and  you should be very proud of it.  
1998-31	1998	And because of these actions, I have something to say to every family  listening to us tonight: your children can go on to college. If you know a  child from a poor family, tell her not to give up, she can go on to  college. If you know a young couple struggling with bills, worried they  won't be able to send their children to college, tell them not to give up,  their children can go on to college. If you know somebody who's caught in a  dead-end job and afraid he can't afford the classes necessary to get better  jobs for the rest of his life, tell him not to give up, he can go on to  college.  
1998-32	1998	Because of the things that have been done, we can make college as universal  in the 21st century as high school is today. And, my friends, that will  change the face and future of America.  
1998-33	1998	We have opened wide the doors of the world's best system of higher  education. Now we must make our public elementary and secondary schools the  world's best as well--by raising standards, raising expectations and raising  accountability.  
1998-34	1998	Thanks to the actions of this Congress last year, we will soon have, for  the very first time, a voluntary national test based on national standards  in fourth grade reading and eighth grade math.  
1998-35	1998	Parents have a right to know whether their children are mastering the  basics. And every parent already knows the key; good teachers and small  classes.  
1998-36	1998	Tonight, I propose the first ever national effort to reduce class size in  the early grades. My balanced budget will help to hire a hundred thousand  new teachers who have passed the state competency tests. Now with these  teachers--listen--with these teachers, we will actually be able to reduce  class size in the first, second and third grades to an average of 18  students a class all across America.  
1998-37	1998	Now, if I've got the math right, more teachers teaching smaller classes  requires more classrooms. So I also propose a school construction tax cut  to help communities modernize or build 5,000 schools.  
1998-38	1998	We must also demand greater accountability. When we promote a child from  grade to grade who hasn't mastered the work, we don't do that child any  favors. It is time to end social promotion in America's schools.  
1998-39	1998	Last year, in Chicago, they made that decision--not to hold our children  back, but to lift them up. Chicago stopped social promotion and started  mandatory summer school to help students who are behind to catch up.  
1998-40	1998	I propose to help other communities follow Chicago's lead. Let's say to  them stop promoting children who don't learn, and we will give you the  tools to make sure they do.  
1998-41	1998	I also ask this Congress to support our efforts to enlist colleges and  universities to reach out to disadvantaged children starting in the sixth  grade so that they can get the guidance and hope they need so they can know  that they, too, will be able to go on to college.  
1998-42	1998	As we enter the 21st century, the global economy requires us to seek  opportunity not just at home, but in all the markets of the world. We must  shape this global economy, not shrink from it.  
1998-43	1998	In the last five years, we have led the way in opening new markets, with  240 trade agreements that remove foreign barriers to products bearing the  proud stamp, "Made in the USA." Today, record high exports account for  fully one-third of our economic growth. I want to keep them going, because  that's the way to keep America growing and to advance a safer, more stable  world.  
1998-44	1998	Now, all of you know, whatever your views are, that I think this is a great  opportunity for America. I know there is opposition to more comprehensive  trade agreements. I have listened carefully, and I believe that the  opposition is rooted in two fears: first, that our trading partners will  have lower environmental and labor standards, which will give them an  unfair advantage in our market and do their own people no favors, even if  there's more business; and second, that if we have more trade, more of our  workers will lose their jobs and have to start over.  
1998-45	1998	I think we should seek to advance worker and environmental standards around  the world. It should--I have made it abundantly clear that it should be a  part of our trade agenda, but we cannot influence other countries'  decisions if we send them a message that we're backing away from trade with  them.  
1998-46	1998	This year I will send legislation to Congress, and ask other nations to  join us, to fight the most intolerable labor practice of all-abusive child  labor.  
1998-47	1998	We should also offer help and hope to those Americans temporarily left  behind with the global marketplace or by the march of technology, which may  have nothing to do with trade. That's why we have more than doubled funding  for training dislocated workers since 1993. And if my new budget is  adopted, we will triple funding. That's why we must do more, and more  quickly, to help workers who lose their jobs for whatever reason.  
1998-48	1998	You know, we help communities in a special way when their military base  closes. We ought to help them in the same way if their factory closes.  Again, I ask the Congress to continue its bipartisan work to consolidate  the tangle of training programs we have today into one single GI Bill for  Workers, a simple skills grant so people can, on their own, move quickly to  new jobs, to higher incomes and brighter futures.  
1998-49	1998	Now, we all know in every way in life change is not always easy, but we  have to decide whether we're going to try to hold it back and hide from it,  or reap its benefits. And remember the big picture here: while we've been  entering into hundreds of new trade agreements, we've been creating  millions of new jobs. So this year we will forge new partnerships with  Latin America, Asia and Europe, and we should pass the new African Trade  Act. It has bipartisan support.  
1998-50	1998	I will also renew my request for the fast-track negotiating authority  necessary to open more new markets, created more new jobs, which every  president has had for two decades.  
1998-51	1998	You know, whether we like it or not, in ways that are mostly positive, the  world's economies are more and more interconnected and interdependent.  Today, an economic crisis anywhere can affect economies everywhere. Recent  months have brought serious financial problems to Thailand, Indonesia,  South Korea and beyond.  
1998-52	1998	Now why should Americans be concerned about this?  
1998-53	1998	First, these countries are our customers. If they sink into recession, they  won't be able to buy the goods we'd like to sell them.  
1998-54	1998	Second, they're also our competitors, so if their currencies lose their  value and go down, then the price of their goods will drop, flooding our  market and others with much cheaper goods, which makes it a lot tougher for  our people to compete.  
1998-55	1998	And finally, they are our strategic partners. Their stability bolsters our  security.  
1998-56	1998	The American economy remains sound and strong, and I want to keep it that  way. But because the turmoil in Asia will have an impact on all the world's  economies, including ours, making that negative impact as small as possible  is the right thing to do for America, and the right thing to do for a safer  world.  
1998-57	1998	Our policy is clear: no nation can recover if it does not reform itself,  but when nations are willing to undertake serious economic reform, we  should help them do it. So I call on Congress to renew America's commitment  to the International Monetary Fund.  
1998-58	1998	And I think we should say to all the people we're trying to represent here,  that preparing for a far off storm that may reach our shores is far wiser  than ignoring the thunder 'til the clouds are just overhead.  
1998-59	1998	A strong nation rests on the rock of responsibility. A society rooted in  responsibility must first promote the value of work, not welfare. We could  be proud that after decades of finger-pointing and failure, together we  ended the old welfare system. And we're now replacing welfare checks with  paychecks.  
1998-60	1998	Last year, after a record four-year decline in welfare rolls I challenged  our nation to move two million more Americans off welfare by the year 2000.  I'm pleased to report we have also met that goal two full years ahead of  schedule.  
1998-61	1998	This is a grand achievement, the sum of many acts of individual courage,  persistence and hope.  
1998-62	1998	For 13 years, Elaine Kinslow of Indianapolis, Indiana was on and off  welfare. Today she's a dispatcher with a van company. She's saved enough  money to move her family into a good neighborhood. And she's helping other  welfare recipients go to work.  
1998-63	1998	Elaine Kinslow and all those like her are the real heroes of the welfare  revolution. There are millions like her all across America, and I am happy  she could join the first lady tonight. Elaine, we're very proud of you.  Please stand up.  
1998-64	1998	We still have a lot more to do, all of us, to make welfare reform a  success; providing child care, helping families move closer to available  jobs, challenging more companies to join our Welfare to Work Partnership,  increasing child-support collections from deadbeat parents who have a duty  to support their own children. I also want to thank Congress for restoring  some of the benefits to immigrants who are here legally and working hard.  And I hope you will finish that job this year.  
1998-65	1998	We have to make it possible for all hard-working families to meet their  most important responsibilities. Two years ago, we helped guarantee that  Americans can keep their health insurance when they changed jobs. Last  year, we extended health care to up to 5 million children. This year, I  challenge Congress to take the next historic steps. A hundred and sixty  million of our fellow citizens are in managed care plans. These plans save  money, and they can improve care. But medical decisions ought to be made by  medical doctors, not insurance company accountants.  
1998-66	1998	I urge this Congress to reach across the aisle and write into law a  consumer bill of rights that says this: You have the right to know all your  medical options, not just the cheapest. You have the right to choose the  doctor you want for the care you need. You have the right to emergency room  care wherever and whenever you need it. You have the right to keep your  medical records confidential.  
1998-67	1998	Now, traditional care or managed care, every American deserves quality  care. Millions of Americans between the ages of 55 and 65 have lost their  health insurance. Some are retired. Some are laid off. Some lose their  coverage when their spouses retire. After a lifetime of work, they're left  with nowhere to turn.  
1998-68	1998	So I ask the Congress, let these hard-working Americans buy into the  Medicare system. It won't add a dime to the deficit, but the peace of mind  it will provide will be priceless.  
1998-69	1998	Next, we must help parents protect their children from the gravest health  threat that they face: an epidemic of teen smoking spread by multimillion  dollar marketing campaigns. I challenge Congress. Let's pass bipartisan,  comprehensive legislation that will improve public health, protect our  tobacco farmers, and change the way tobacco companies do business forever.  
1998-70	1998	Let's do what it takes to bring teen smoking down. Let's raise the price of  cigarettes by up to $1.50 a pack over the next 10 years, with penalties on  the tobacco industry if it keeps marketing to our children.  
1998-71	1998	Now tomorrow, like every day, 3,000 children will start smoking, and a  thousand will die early as a result. Let this Congress be remembered as the  Congress that saved their lives.  
1998-72	1998	In the new economy, most parents work harder than ever. They face a  constant struggle to balance their obligations to be good workers, and  their even more important obligations to be good parents.  
1998-73	1998	The Family and Medical Leave Act was the very first bill I was privileged  to sign into law as president in 1993. Since then, about 15 million people  have taken advantage of it, and I've met a lot of them all across this  country. I ask you to extend the law to cover 10 million more workers, and  to give parents time off when they have to go see their children's teachers  or take them to the doctor.  
1998-74	1998	Child care is the next frontier we must face to enable people to succeed at  home and at work. Last year, I co-hosted the very first White House  conference on child care with one of our foremost experts, America's first  lady. From all corners of America, we heard the same message--without regard  to region or income or political affiliation--we've got to raise the quality  of child care, we've got to make it safer, we've got to make it more  affordable.  
1998-75	1998	So here's my plan: Help families to pay for child care for a million more  children; scholarships and background checks for child-care workers, and a  new emphasis on early learning; tax credits for businesses that provide  child care for their employees; and a larger child-care tax credit for  working families.  
1998-76	1998	Now, if you pass my plan, what this means is that a family of four with an  income of $35,000 and high child-care costs will no longer pay a single  penny of federal income tax.  
1998-77	1998	You know, I think this is such a big issue with me because of my own  personal experience. I have often wondered how my mother, when she was a  young widow, would have been able to go away to school and get an education  and come back and support me, if my grandparents hadn't been able to take  care of me. She and I were really very lucky.  
1998-78	1998	How many other families have never had that same opportunity? The truth is,  we don't know the answer to that question, but we do know what the answer  should be. Not a single American family should ever have to choose between  the job they need and the child they love.  
1998-79	1998	A society rooted in responsibility must provide safe streets, safe schools,  and safe neighborhoods. We pursued a strategy of more police, tougher  punishment, smarter prevention with crime-fighting partnerships, with local  law enforcement and citizen groups, where the rubber hits the road.  
1998-80	1998	I can report to you tonight that it's working. Violent crime is down,  robbery is down, assault is down, burglary is down for five years in a row  all across America. Now, we need to finish the job of putting 100,000 more  police on our streets.  
1998-81	1998	Again, I ask Congress to pass a juvenile crime bill that provides more  prosecutors and probation officers to crack down on gangs and guns and  drugs and bar violent juveniles from buying guns for life. And I ask you to  dramatically expand our support for after-school programs. I think every  American should know that most juvenile crime is committed between the  hours of 3:00 in the afternoon and 8:00 at night. We can keep so many of  our children out of trouble in the first place if we give them some place  to go other than the streets, and we ought to do it.  
1998-82	1998	Drug use is on the decline. I thank General McCaffrey for his leadership,  and I thank this Congress for passing the largest anti-drug budget in  history. Now I ask you to join me in a ground-breaking effort to hire a  thousand new Border Patrol agents and to deploy the most sophisticated  available new technologies to help close the door on drugs at our borders.  
1998-83	1998	Police, prosecutors, and prevention programs, good as they are, they can't  work if our court system doesn't work. Today, there are large numbers of  vacancies in our federal courts. Here is what the chief justice of the  United States wrote: "Judicial vacancies cannot remain at such high levels  indefinitely without eroding the quality of justice."  
1998-84	1998	I simply ask the United States Senate to heed this plea and vote on the  highly qualified nominees before you, up or down.  
1998-85	1998	We must exercise responsibility not just at home but around the world. On  the eve of a new century, we have the power and the duty to build a new era  of peace and security. But make no mistake about it; today's possibilities  are not tomorrow's guarantees. America must stand against the poisoned  appeals of extreme nationalism. We must combat an unholy access of new  threats from terrorists, international criminals and drug traffickers.  
1998-86	1998	These 21st century predators feed on technology and the free flow of  information and ideas and people, and they will be all the more lethal if  weapons of mass destruction fall into their hands. To meet these  challenges, we are helping to write international rules of the road for the  21st century, protecting those who join the family of nations and isolating  those who do not.  
1998-87	1998	Within days, I will ask the Senate for its advice and consent to make  Hungary, Poland and the Czech Republic the newest members of NATO. For 50  years, NATO contained communism and kept America and Europe secure. Now  these three formerly communist countries have said yes to democracy. I ask  the Senate to say yes to them, our new allies.  
1998-88	1998	By taking in new members and working closely with new partners, including  Russia and Ukraine, NATO can help to assure that Europe is a stronghold for  peace in the 21st century.  
1998-89	1998	Next, I will ask Congress to continue its support for our troops and their  mission in Bosnia. This Christmas, Hillary and I traveled to Sarajevo with  Senator and Mrs. Dole and a bipartisan congressional delegation. We saw  children playing in the streets where, two years ago, they were hiding from  snipers and shells. The shops were filled with food. The cafes were alive  with conversation. The progress there is unmistakable; but it is not yet  irreversible.  
1998-90	1998	To take firm root, Bosnia's fragile peace still needs the support of  American and allied troops when the current NATO mission ends in June. I  think Senator Dole actually said it best. He said: "This is like being  ahead in the fourth quarter of a football game; now is not the time to walk  off the field and forfeit the victory."  
1998-91	1998	I wish all of you could have seen our troops in Tuzla. They're very proud  of what they are doing in Bosnia, and we're all very proud of them. One of  those--one of those brave soldiers is sitting with the first lady tonight:  Army Sergeant Michael Tolbert. His father was a decorated Vietnam vet.  After college in Colorado, he joined the Army. Last year he led an infantry  unit that stopped a mob of extremists from taking over a radio station that  is a voice of democracy and tolerance in Bosnia. Thank you very much,  Sergeant, for what you represent.  
1998-92	1998	In Bosnia and around the world, our men and women in uniform always do  their mission well. Our mission must be to keep them well-trained and  ready, to improve their quality of life, and to provide the 21st century  weapons they need to defeat any enemy.  
1998-93	1998	I ask Congress to join me in pursuing an ambitious agenda to reduce the  serious threat of weapons of mass destruction. This year, four decades  after it was first proposed by President Eisenhower, a Comprehensive  Nuclear Test Ban is within reach. By ending nuclear testing, we can help to  prevent the development of new and more dangerous weapons, and make it more  difficult for non-nuclear states to build them.  
1998-94	1998	I am pleased to announce that four former chairmen of the Joint Chiefs of  Staff--Generals John Shalikashvili, Colin Powell and David Jones, and  Admiral William Crowe--have endorsed this treaty, and I ask the Senate to  approve it this year.  
1998-95	1998	Together we must also confront the new hazards of chemical and biological  weapons, and the outlaw states, terrorists and organized criminals seeking  to acquire them.  
1998-96	1998	Saddam Hussein has spent the better part of this decade, and much of his  nation's wealth, not on providing for the Iraqi people, but on developing  nuclear, chemical and biological weapons and the missiles to deliver them.  
1998-97	1998	The United Nations weapons inspectors have done a truly remarkable job,  finding and destroying more of Iraq's arsenal than was destroyed during the  entire gulf war. Now, Saddam Hussein wants to stop them from completing  their mission.  
1998-98	1998	I know I speak for everyone in this chamber, Republicans and Democrats,  when I say to Saddam Hussein, "You cannot defy the will of the world," and  when I say to him, "You have used weapons of mass destruction before; we  are determined to deny you the capacity to use them again."  
1998-99	1998	Last year, the Senate ratified the Chemical Weapons Convention to protect  our soldiers and citizens from poison gas. Now we must act to prevent the  use of disease as a weapon of war and terror. The Biological Weapons  Convention has been in effect for 23 years now. The rules are good, but the  enforcement is weak. We must strengthen it with a new international  inspection system to detect and deter cheating. In the months ahead, I will  pursue our security strategy with old allies in Asia and Europe, and new  partners from Africa to India and Pakistan, from South America to China.  And from Belfast to Korea to the Middle East, America will continue to  stand with those who stand for peace.  
1998-100	1998	Finally, it's long past time to make good on our debt to the United  Nations.  
1998-101	1998	More and more we are working with other nations to achieve common goals. If  we want America to lead, we've got to set a good example. As we see--as we  see so clearly in Bosnia, allies who share our goals can also share our  burdens. In this new era, our freedom and independence are actually  enriched, not weakened, by our increasing interdependence with other  nations. But we have to do our part.  
1998-102	1998	Our founders set America on a permanent course toward a more perfect union.  To all of you, I say, it is a journey we can only make together, living as  one community.  
1998-103	1998	First, we have to continue to reform our government, the instrument of our  national community. Everyone knows elections have become too expensive,  fueling a fund-raising arms race.  
1998-104	1998	This year, by March the 6th, at long last the Senate will actually vote on  bipartisan campaign finance reform proposed by senators McCain and  Feingold. Let's be clear; a vote against McCain-Feingold is a vote for soft  money and for the status quo. I ask you to strengthen our democracy and  pass campaign finance reform this year.  
1998-105	1998	But at least equally important, we have to address the real reason for the  explosion in campaign costs: the high cost of media advertising. I will--  for the folks watching at home, those were the groans of pain in the  audience--I will formally request that the Federal Communications  Commission act to provide free or reduced-cost television time--for  candidates who observe spending limits voluntarily. The airwaves are a  public trust, and broadcasters also have to help us in this effort to  strengthen our democracy.  
1998-106	1998	Under the leadership of Vice President Gore, we have reduced the federal  payroll by 300,000 workers, cut 16,000 pages of regulation, eliminated  hundreds of programs and improved the operations of virtually every  government agency. But we can do more.  
1998-107	1998	Like every taxpayer, I'm outraged by the reports of abuses by the IRS. We  need some changes there: new citizen advocacy panels, a stronger taxpayer  advocate, phone lines open 24 hours a day, relief for innocent taxpayers.  
1998-108	1998	Last year, by an overwhelming bipartisan margin, the House of  Representatives passed sweeping IRS reforms. This bill must not now  languish in the Senate. Tonight, I ask the Senate: Follow the House; pass  the bipartisan package as your first order of business. I hope to goodness  before I finish I can think of something to say 'Follow the Senate' on so  I'll be out of trouble!  
1998-109	1998	A nation that lives as a community must value all its communities. For the  past five years, we have worked to bring the spark of private enterprise to  inner city and poor rural areas with community development banks, more  commercial loans into poor neighborhoods, cleanup of polluted sites for  development.  
1998-110	1998	Under the continued leadership of the vice president, we propose to triple  the number of empowerment zones to give business incentives to invest in  those areas. We should. We should also give poor families more help to move  into homes of their own, and we should use tax cuts to spur the  construction of more low-income housing.  
1998-111	1998	Last year, this Congress took strong action to help the District of  Columbia. Let us renew our resolve to make our capital city a great city  for all who live and visit here.  
1998-112	1998	Our cities are the vibrant hubs of great metropolitan areas. They are still  the gateway for new immigrants from every continent who come here to work  for their own American dreams. Let's keep our cities going strong into the  21st Century. They're a very important part of our future.  
1998-113	1998	Our communities are only as healthy as the air our children breathe, the  water they drink, the Earth they will inherit. Last year we put in place  the toughest-ever controls on smog and soot. We moved to protect  Yellowstone, the Everglades, Lake Tahoe. We expanded every community's  right to know about toxics that threaten their children.  
1998-114	1998	Just yesterday, our food safety plan took effect, using new science to  protect consumers from dangers like e. coli and salmonella.  
1998-115	1998	Tonight, I ask you to join me in launching a new Clean Water initiative, a  far-reaching effort to clean our rivers, our lakes and our coastal waters  for our children.  
1998-116	1998	Our overriding environmental challenge tonight is the worldwide problem of  climate change, global warming, the gathering crisis that requires  worldwide action. The vast majority of scientists have concluded  unequivocally that if we don't reduce the emission of greenhouse gases at  some point in the next century, we'll disrupt our climate and put our  children and grandchildren at risk.  
1998-117	1998	This past December, America led the world to reach a historic agreement  committing our nation to reduce greenhouse gas emissions through market  forces, new technologies, energy efficiency.  
1998-118	1998	We have it in our power to act right here, right now. I propose $6 billion  in tax cuts, in research and development, to encourage innovation,  renewable energy, fuel-efficient cars, energy-efficient homes. Every time  we have acted to heal our environment, pessimists have told us it would  hurt the economy. Well, today our economy is the strongest in a generation,  and our environment is the cleanest in a generation. We have always found a  way to clean the environment and grow the economy at the same time. And  when it comes to global warming, we'll do it again.  
1998-119	1998	Finally, community means living by the defining American value, the ideal  heard 'round the world: that we're all created equal. Throughout our  history, we haven't always honored that ideal, and we've never fully lived  up to it. Often it's easier to believe that our differences matter more  than what we have in common. It may be easier, but it's wrong.  
1998-120	1998	What we have to do in our day and generation to make sure that America  truly becomes one nation, what do we have to do? We're becoming more and  more and more diverse. Do you believe we can become one nation? The answer  cannot be to dwell on our differences, but to build on our shared values.  
1998-121	1998	And we all cherish family and faith, freedom and responsibility. We all  want our children to grow up in the world where their talents are matched  by their opportunities.  
1998-122	1998	I've launched this national initiative on race to help us recognize our  common interests and to bridge the opportunity gaps that are keeping us  from becoming one America. Let us begin by recognizing what we still must  overcome.  
1998-123	1998	Discrimination against any American is un-American. We must vigorously  enforce the laws that make it illegal. I ask your help to end the backlog  at the Equal Employment Opportunity Commission. Sixty thousand of our  fellow citizens are waiting in line for justice, and we should act now to  end their wait.  
1998-124	1998	We should also recognize that the greatest progress we can make toward  building one America lies in the progress we make for all Americans,  without regard to race. When we open the doors of college to all Americans,  when we rid all our streets of crime, when there are jobs available to  people from all our neighborhoods, when we make sure all parents have the  child care they need, we're helping to build one nation.  
1998-125	1998	We in this chamber and in this government must do all we can to address the  continuing American challenge to build one America. But we'll only move  forward if all our fellow citizens, including every one of you at home  watching tonight, is also committed to this cause.  
1998-126	1998	We must work together, learn together, live together, serve together. On  the forge of common enterprise, Americans of all backgrounds can hammer out  a common identity.  
1998-127	1998	We see it today in the United States military, in the Peace Corps, in  AmeriCorps. Wherever people of all races and backgrounds come together in a  shared endeavor and get a fair chance, we do just fine. With shared values  and meaningful opportunities and honest communications and citizen service,  we can unite a diverse people in freedom and mutual respect. We are many.  We must be one.  
1998-128	1998	In that spirit, let us lift our eyes to the new millennium. How will we  mark that passage? It just happens once every thousand years. This year,  Hillary and I launched the White House Millennium Program to promote  America's creativity and innovation and to preserve our heritage and  culture into the 21st century. Our culture lives in every community, and  every community has places of historic value that tell our stories as  Americans. We should protect them.  
1998-129	1998	I am proposing a public-private partnership to advance our arts and  humanities and to celebrate the millennium by saving America's treasures  great and small. And while we honor the past, let us imagine the future.  
1998-130	1998	Now, think about this. The entire store of human knowledge now doubles  every five years. In the 1980s, scientists identified the gene causing  cystic fibrosis; it took nine years. Last year, scientists located the gene  that causes Parkinson's disease--in only nine days! Within a decade, gene  chips will offer a road map for prevention of illnesses throughout a  lifetime. Soon, we'll be able to carry all the phone calls on Mother's Day  on a single strand of fiber the width of a human hair. A child born in 1998  may well live to see the 22nd century.  
1998-131	1998	Tonight, as part of our gift to the millennium, I propose a 21st Century  research fund for pathbreaking scientific inquiry, the largest funding  increase in history for the National Institutes of Health, the National  Science Foundation, and the National Cancer Institute. We have already  discovered we have already discovered genes for breast cancer and diabetes.  I ask you to support this initiative so ours will be the generation that  finally wins the war against cancer and begins a revolution in our fight  against all deadly diseases.  
1998-132	1998	As important as all this scientific progress is, we must continue to see  that science serves humanity, not the other way around. We must prevent the  misuse of genetic tests to discriminate against any American, and we must  ratify the ethical consensus of the scientific and religious communities,  and ban the cloning of human beings.  
1998-133	1998	We should enable all the world's people to explore the far reaches of  cyberspace. Think of this: the first time I made a State of the Union  speech to you, only a handful of physicists used the World Wide Web--  literally just a handful of people.  
1998-134	1998	Now in schools and libraries, homes and businesses, millions and millions  of Americans surf the Net every day.  
1998-135	1998	We must give parents the tools they need to help protect their children  from inappropriate material on the Net, but we also must make sure that we  protect the exploding, global commercial potential of the Internet. We can  do the kinds of things that we need to do and still protect our kids. For  one thing, I ask Congress to step up support for building the next  generation Internet. It's getting kind of clogged, you know. And the next  generation Internet will operate at speeds up to a thousand times faster  than today.  
1998-136	1998	Even as we explore this inner space, in the new millennium we're going to  open new frontiers in outer space.  
1998-137	1998	Throughout all history, human kind has had only one place to call home: our  planet Earth. Beginning this year, 1998, men and women from 16 countries  will build a foothold in the heavens--the International Space Station. With  its vast expanses, scientists and engineers will actually set sail on an  uncharted sea of limitless mystery and unlimited potential.  
1998-138	1998	And this October, a true American hero, a veteran pilot of 149 combat  missions and one five-hour space flight that changed the world, will return  to the heavens. Godspeed, John Glenn!  
1998-139	1998	John, you will carry with you America's hopes, and on your uniform once  again you will carry America's flag, marking the unbroken connection  between the deeds of America's past and the daring of America's future.  
1998-140	1998	Nearly 200 years ago, a tattered flag, its broad stripes and bright stars  still gleaming through the smoke of a fierce battle, moved Francis Scott  Key to scribble a few words on the back of an envelope, the words that  became our National Anthem. Today, that Star-Spangled Banner, along with  the Declaration of Independence, the Constitution and the Bill of Rights,  are on display just a short walk from here. They are America's treasures.  And we must also save them for the ages.  
1998-141	1998	I ask all Americans to support our project to restore all our treasures so  that the generations of the 21st century can see for themselves the images  and the words that are the old and continuing glory of America, an America  that has continued to rise through every age against every challenge, a  people of great works and greater possibilities, who have always, always  found the wisdom and strength to come together as one nation, to widen the  circle of opportunity, to deepen the meaning of our freedom, to form that  more perfect union.  
1998-142	1998	Let that be our gift to the 21st century.  
1998-143	1998	God bless you, and God bless the United States.  
1999-1	1999	Mr. Speaker, Mr. Vice President, members of Congress, honored guests, my  fellow Americans:  
1999-2	1999	Tonight I have the honor of reporting to you on the State of the Union.  
1999-3	1999	Let me begin by saluting the new speaker of the House and thanking him  especially tonight for extending an invitation to two guests sitting in the  gallery with Mrs. Hastert. Lyn Gibson and Wei Ling Chestnut are the widows  of the two brave Capitol Hill police officers who gave their lives to  defend freedom's house.  
1999-4	1999	Mr. Speaker, at your swearing in you asked us all to work together in a  spirit of civility and bipartisanship. Mr. Speaker, let's do exactly that.  
1999-5	1999	Tonight, I stand before you to report that America has created the longest  peacetime economic expansion in our history. With nearly 18 million new  jobs, wages rising at more than twice the rate of inflation, the highest  homeownership in history, the smallest welfare roles in 30 years, and the  lowest peacetime unemployment since 1957.  
1999-6	1999	For the first time in three decades, the budget is balanced. From a deficit  of $290 billion in 1992, we had a surplus of $70 billion last year. And  now, we are on course for budget surpluses for the next 25 years.  
1999-7	1999	Thanks to the pioneering leadership of all of you, we have the lowest  violent crime rate in a quarter century and the cleanest environment in a  quarter century.  
1999-8	1999	America is a strong force for peace--from Northern Ireland to Bosnia to  the Middle East.  
1999-9	1999	Thanks to the leadership of Vice President Gore, we have a government for  the Information Age, once again a government that is a progressive  instrument of the common good, rooted in our oldest values of opportunity,  responsibility and community, devoted to fiscal responsibility, determined  to give our people the tools they need to make the most of their own lives  in the 21st century, a 21st century government for 21st century America.  
1999-10	1999	My fellow Americans, I stand before you tonight to report that the state of  our union is strong. Now, America is working again. The promise of our  future is limitless. But we cannot realize that promise if we allow the hum  of our prosperity to lull us into complacency. How we fare as a nation far  into the 21st century depends upon what we do as a nation today.  
1999-11	1999	So, with our budget surplus growing, our economy expanding, our confidence  rising, now is the moment for this generation to meet our historic  responsibility to the 21st century.  
1999-12	1999	Our fiscal discipline gives us an unsurpassed opportunity to address a  remarkable new challenge, the aging of America. With the number of elderly  Americans set to double by 2030, the baby boom will become a senior boom.  
1999-13	1999	So first and above all, we must save Social Security for the 21st century.  
1999-14	1999	Early in this century, being old meant being poor. When President Roosevelt  created Social Security, thousands wrote to thank him for eliminating what  one woman called "the stark terror of penniless, helpless old age." Even  today, without Social Security, half our nation's elderly would be forced  into poverty.  
1999-15	1999	Today, Social Security is strong, but by 2013, payroll taxes will no longer  be sufficient to cover monthly payments. By 2032, the trust fund will be  exhausted and Social Security will be unable to pay the full benefits older  Americans have been promised.  
1999-16	1999	The best way to keep Social Security a rock solid guarantee is not to make  drastic cuts in benefits; not to raise payroll tax rates; not to drain  resources from Social Security in the name of saving it. Instead, I propose  that we make the historic decision to invest the surplus to save Social  Security.  
1999-17	1999	Specifically, I propose that we commit 60 percent of the budget surplus for  the next 15 years to Social Security, investing a small portion in the  private sector just as any private or state government pension would do.  This will earn a higher return and keep Social Security sound for 55  years.  
1999-18	1999	But we must aim higher. We should put Social Security on a sound footing  for the next 75 years. We should reduce poverty among elderly women, who  are nearly twice as likely to be poor as are other seniors. And we should  eliminate the limits on what seniors on Social Security can earn.  
1999-19	1999	Now, these changes will require difficult, but fully achievable choices  over and above the dedication of the surplus. They must be made on a  bipartisan basis. They should be made this year. So let me say to you  tonight, I reach out my hand to all of you in both houses in both parties  and ask that we join together in saying to the American people, we will  save Social Security now.  
1999-20	1999	Now, last year, we wisely reserved all of the surplus until we knew what it  would take to save Social Security. Again, I say, we shouldn't spend any of  it, not any of it, until after Social Security is truly saved. First  thing's first.  
1999-21	1999	Second, once we have saved Social Security, we must fulfill our obligation  to save and improve Medicare. Already we have extended the life of the  Medicare trust fund by 10 years, but we should extend it for at least  another decade. Tonight, I propose that we use one out of every six dollars  in the surplus for the next 15 years to guarantee the soundness of Medicare  until the year 2020.  
1999-22	1999	But, again--but, again, we should aim higher. We must be willing to work  in a bipartisan way and look at new ideas, including the upcoming report of  the Bipartisan Medicare Commission. If we work together, we can secure  Medicare for the next two decades and cover the greatest growing need of  seniors--affordable prescription drugs.  
1999-23	1999	Third, we must help all Americans from their first day on the job to save,  to invest, to create wealth.  
1999-24	1999	From its beginnings, Americans have supplemented Social Security with  private pensions and savings. Yet today millions of people retire with  little to live on other than Social Security. Americans living longer than  ever simply must save more than ever.  
1999-25	1999	Therefore, in addition to saving Social Security and Medicare, I propose a  new pension initiative for retirement security in the 21st century. I  propose that we use a little over 11 percent of the surplus to establish  universal savings accounts--USA accounts--to give all Americans the means  to save.  
1999-26	1999	With these new accounts, Americans can invest as they choose and receive  funds to match a portion of their savings with extra help for those least  able to save. USA accounts will help all Americans to share in our nation's  wealth and to enjoy a more secure retirement. I ask you to support them.  
1999-27	1999	Fourth, we must invest in long-term care.  
1999-28	1999	I propose a tax credit of $1,000 for the aged, ailing or disabled and the  families who care for them. Long-term care will become a bigger and bigger  challenge with the aging of America--and we must do more to help our  families deal with it.  
1999-29	1999	I was born in 1946, the first year of the baby boom. I can tell you that  one of the greatest concerns of our generation is our absolute  determination not to let our growing old place an intolerable burden on our  children and their ability to raise our grandchildren.  
1999-30	1999	Our economic success and our fiscal discipline now give us the opportunity  to lift that burden from their shoulders, and we should take it.  
1999-31	1999	Saving Social Security, Medicare, creating U.S. accounts, this is the right  way to use the surplus. If we do so, if we do so, we will still have  resources to meet critical needs and education and defense.  
1999-32	1999	And I want to point out that this proposal is fiscally sound. Listen to  this, if we set aside 60 percent of the surplus for Social Security and 16  percent for Medicare over the next 15 years, that savings will achieve the  lowest level of publicly-held debt since right before World War I in 1917.  
1999-33	1999	So with these four measures; saving Social Security, strengthening  Medicare, establishing the USA accounts, supporting long-term care, we can  begin to meet our generation's historic responsibility to establish true  security for 21st century seniors.  
1999-34	1999	Now, there are more children, from more diverse backgrounds, in our public  schools that any time in our history. Their education must provide the  knowledge and nurture the creativity that will allow our entire nation to  thrive in the new economy.  
1999-35	1999	Today we can say something we couldn't say six years ago. With tax credits  and more affordable student loans, with more work-study grants and more  Pell Grants, with education IRAs, the new HOPE Scholarship tax cut that  more than five million Americans will receive this year, we have finally  opened the doors of college to all Americans.  
1999-36	1999	With our support, nearly every state has set higher academic standards for  public schools and a voluntary national test is being developed to measure  the progress of our students. With over $1 billion in discounts available  this year, we are well on our way to our goal of connecting every classroom  and library to the Internet.  
1999-37	1999	Last fall, you passed our proposal to start hiring 100,000 new teachers to  reduce class size in the early grades. Now I ask you to finish the job.  
1999-38	1999	You know our children are doing better. SAT scores are up. Math scores have  risen in nearly all grades. But there's a problem. While our fourth-graders  out performed their peers in other countries in math and science, our  eighth-graders are around average, and our 12th-graders rank near the  bottom. We must do better.  
1999-39	1999	Now each year the national government invests more than $15 billion in our  public schools. I believe we must change the way we invest that money to  support what works and to stop supporting what does not work.  
1999-40	1999	First, later this year I will send to Congress a plan that for the first  time holds states and school districts accountable for progress and rewards  them for results. My Education Accountability Act will require every school  district receiving federal help to take the following five steps:  
1999-41	1999	First, all schools must end social promotion.  
1999-42	1999	Now, no child, no child should graduate from high school with a diploma he  or she can't read. We do our children no favors when we allow them to pass  from grade to grade without mastering the material. But we can't just hold  students back because the system fails them.  
1999-43	1999	So my balanced budget triples the funding for summer school and  after-school programs to keep a million children learning. Now, if--if you  doubt this will work, just look at Chicago, which ended social promotion  and made summer school mandatory for those who don't master the basics.  Math and reading scores are up three years running with some of the biggest  gains in some of the poorest neighborhoods. It will work, and we should do  it.  
1999-44	1999	Second, all states and school districts must turn around their worst  performing schools or shut them down. That's the policy established in  North Carolina by Governor Jim Hunt. North Carolina made the biggest gains  in test scores in the nation last year. Our budget includes $200 million to  help states turn around their own failing schools.  
1999-45	1999	Third, all states and school districts must be held responsible for the  quality of their teachers. The great majority of our teachers do a fine  job, but in too many schools teachers don't have college majors or even  minors in the subjects they teach. New teachers should be required to pass  performance exams, and all teachers should know the subject their  teaching.  
1999-46	1999	This year's balanced budget contains resources to help them reach higher  standards. And to attract talented young teachers to the toughest  assignments, I recommend a six-fold increase in our program for college  scholarships for students who commit to teach in the inner-cities and  isolated rural areas and in Indian communities. Let us bring excellence to  every part of America.  
1999-47	1999	Fourth, we must empower parents with more information and more choices. In  too many communities it's easier to get information on the quality of the  local restaurants than on the quality of the local schools.  
1999-48	1999	Every school district should issue report cards on every school. And  parents should be given more choices in selecting their public schools.  
1999-49	1999	When I became president, there was just one independent public charter  school in all America. With our support on a bipartisan basis, today there  are 1,100. My budget assures that early in the next century, there will be  3,000.  
1999-50	1999	Fifth, to assure that our classrooms are truly places of learning, and to  respond to what teachers have been asking us to do for years, we should say  that all states and school districts must both adopt and implement sensible  discipline policies.  
1999-51	1999	Now let's do one more thing for our children. Today, too many schools are  so old they're falling apart, or so overcrowded students are learning in  trailers. Last fall, Congress missed the opportunity to change that. This  year, with 53 million children in our schools, Congress must not miss that  opportunity again. I ask you to help our communities build or modernize  5,000 schools.  
1999-52	1999	If we do these things--end social promotion, turn around failing schools,  build modern ones, support qualified teachers, promote innovation,  competition and discipline--then we will begin to meet our generation's  historic responsibility to create to 21st century schools.  
1999-53	1999	Now, we also have to do more to support the millions of parents who give  their all every day at home and at work.  
1999-54	1999	The most basic tool of all is a decent income. So let's raise the minimum  wage by a dollar an hour over the next two years.  
1999-55	1999	And let's make sure that women and men get equal pay for equal work by  strengthening enforcement of the equal pay laws.  
1999-56	1999	That was encouraging, you know? There was more balance on the seesaw. I  like that. Let's give them a hand. That's great.  
1999-57	1999	Working parents also need quality child care. So, again this year, I ask  Congress to support our plan for tax credits and subsidies for working  families, for improved safety and quality, for expanded after-school  program. And our plan also includes a new tax credit for stay-at-home  parents, too. They need support as well.  
1999-58	1999	Parents should never have to worry about choosing between their children  and their work. Now, the Family and Medical Leave Act, the very first bill  I signed into law, has now, since 1993, helped millions and millions of  Americans to care for a newborn baby or an ailing relative without risking  their jobs. I think it's time, with all of the evidence that it has been so  little burdensome to employers, to extend family leave to 10 million more  Americans working for smaller companies, and I hope you will support it.  
1999-59	1999	Finally, on the matter of work, parents should never have to face  discrimination in the workplace. So I want to ask Congress to prohibit  companies from refusing to hire or promote workers simply because they have  children. That is not right.  
1999-60	1999	America's families deserve the world's best medical care. Thanks to  bipartisan federal support for medical research, we are not on the verge of  new treatments to prevent or delay diseases from Parkinson's to Alzheimer's  to arthritis to cancer. But as we continue our advances in medical science,  we can't let our medical system lag behind.  
1999-61	1999	Managed care has literally transformed medicine in America, driving down  costs, but threatening to drive down quality as well.  
1999-62	1999	I think we ought to say to every American, you should have the right to  know all you medical options, not just the cheapest. If you need a  specialist, you should have a right to see one. You have a right to the  nearest emergency care if you're in an accident. These are things that we  ought to say. And I think we ought to say you should have a right to keep  your doctor during a period of treatment whether it's a pregnancy or a  chemotherapy treatment or anything else. I believe this.  
1999-63	1999	Now I've ordered these rights to be extended to the 85 million Americans  served by Medicare, Medicaid and other federal health programs. But only  Congress can pass a Patients' Bill of Rights for all Americans.  
1999-64	1999	Last year, Congress missed that opportunity, and we must not miss that  opportunity again. For the sake of our families, I ask us to join together  across party lines and pass a strong enforceable Patients' Bill of Rights.  
1999-65	1999	As more of our medical records are stored electronically, the threats to  all of our privacy increase. Because Congress has given me the authority to  act if it does not do so by August, one way or another, we can all say to  the American people, we will protect the privacy of medical records this  year.  
1999-66	1999	Now, two years ago, we acted to extend health coverage to up to five  million children. Now we should go beyond that. We should make it easier  for small businesses to offer health insurance. We should give people  between the ages of 55 and 65 who lose their health insurance the chance to  buy into Medicare.  
1999-67	1999	And we should continue to ensure access to family planning. No one should  have to choose between keeping health care and taking a job. And therefore,  I especially ask you tonight to join hands to pass the landmark bipartisan  legislation proposed by Sens. Kennedy and Jeffords, Roth and Moynihan, to  allow people with disabilities to keep their health insurance when they go  to work.  
1999-68	1999	We need to enable our public hospitals, our community, our university  health centers to provide basic, affordable care for all the millions of  working families who don't have any insurance. They do a lot of that today,  but much more can be done. And my balanced budget makes a good down payment  toward that goal. I hope you will think about them and support that  provision.  
1999-69	1999	Let me say we must step up our efforts to treat and prevent mental illness.  No American should ever be able--afraid ever to address this disease. This  year we will host a White House Conference on Mental Health. With  sensitivity, commitment and passion, Tipper Gore is leading our efforts  here, and I'd like to thank her for what she's done. Thank you. Thank you.  
1999-70	1999	As everyone knows, our children are targets of a massive media campaign to  hook them on cigarettes. Now, I ask this Congress to resist the tobacco  lobby, to reaffirm the FDA's authority to protect our children from tobacco  and to hold tobacco companies accountable, while protecting tobacco  farmers.  
1999-71	1999	Smoking has cost taxpayers hundreds of billions of dollars under Medicare  and other programs. You know, the states have been right about this.  Taxpayers shouldn't pay for the cost of lung cancer, emphysema, and other  smoking-related illnesses, the tobacco companies should.  
1999-72	1999	So tonight I announce that the Justice Department is preparing a litigation  plan to take the tobacco companies to court and with the funds we recover  to strengthen Medicare.  
1999-73	1999	Now, if we act in these areas--minimum wage, family leave, child care,  health care, the safety of our children--then we will begin to meet our  generation's historic responsibilities to strengthen our families for the  21st century.  
1999-74	1999	Today, America is the most dynamic, competitive, job-creating economy in  history, but we can do even better in building a 21st century economy that  embraces all Americans.  
1999-75	1999	Today's income gap is largely a skills gap. Last year, the Congress passed  a law enabling workers to get a skills grant to choose the training they  need. And I applaud all of you here who were part of that.  
1999-76	1999	This year, I recommend a five-year commitment to the new system, so that we  can provide over the next five years appropriate training opportunities for  all Americans who lose their jobs and expand rapid response teams to help  all towns which have been really hurt when businesses close. I hope you  will support this.  
1999-77	1999	Also, I ask your support for a dramatic increase in federal support for  adult literacy to mount a national campaign aimed at helping the millions  and millions of working people who still read at less than a fifth-grade  level. We need to do this.  
1999-78	1999	Here's some good news. In the past six years, we have cut the welfare rolls  nearly in half.  
1999-79	1999	Two years ago, from this podium, I asked five companies to lead a national  effort to hire people off welfare. Tonight our welfare-to-work partnership  includes 10,000 companies who have hired hundreds of thousands of people,  and our balanced budget will help another 200,000 people move to the  dignity and pride of work. I hope you will support it.  
1999-80	1999	We must bring the spark of private enterprise to every corner of America,  to build a bridge from Wall Street to Appalachia to the Mississippi Delta,  to our Native American communities, with more support for community  development banks for empowerment zones, for 100,000 more vouchers for  affordable housing.  
1999-81	1999	And I ask Congress to support our bold new plan to help businesses raise up  to $15 billion in private sector capital, to bring jobs and opportunities  and inner cities, rural areas, with tax credits, loan guarantees, including  the new American Private Investment Companies, modeled on the Overseas  Private Investment Companies.  
1999-82	1999	Now, for years and years we've had this OPIC, this Overseas Private  Investment Corporation, because we knew we had untapped markets overseas.  But our greatest untapped markets are not overseas--they are right here at  home. And we should go after them.  
1999-83	1999	We must work hard to help bring prosperity back to the family farm.  
1999-84	1999	As this Congress knows very well, dropping prices and the loss of foreign  markets have devastated too many family farmers. Last year, the Congress  provided substantial assistance to help stave off a disaster in American  agriculture, and I am ready to work with lawmakers of both parties to  create a farm safety net that will include crop insurance reform and farm  income assistance.  
1999-85	1999	I ask you to join with me and do this. This should not be a political  issue. Everyone knows what an economic problem is going on out there in  rural America today, and we need an appropriate means to address it.  
1999-86	1999	We must strengthen our lead in technology. It was government investment  that led to the creation of the Internet. I propose a 28-percent increase  in long-term computing research.  
1999-87	1999	We also must be ready for the 21st century from its very first moment by  solving the so-called Y2K computer problem. We had one member of Congress  stand up and applaud. And we may have about that ration out there  applauding at home in front of their television sets. But remember, this is  a big, big problem, and we've been working hard on it. Already we've made  sure that the Social Security checks will come on time.  
1999-88	1999	But I want all the folks at home listening to this to know that we need  every state and local government, every business large and small to work  with us to make sure that this Y2K computer bug will be remembered as the  last headache of the 20th century, not the first crisis of the 21st.  
1999-89	1999	For our own prosperity, we must support economic growth abroad. You know,  until recently a third of our economic growth came from exports. But over  the past year and a half, financial turmoil has put that growth at risk.  Today, much of the world is in recession, with Asia hit especially hard.  This is the most serious financial crisis in half a century.  
1999-90	1999	To meet it, the U.S. and other nations have reduced interest rates and  strengthened the International Monetary Fund and while the turmoil is not  over, we have worked very hard with other nations to contain it.  
1999-91	1999	At the same time, we will continue to work on the long-term project:  building a global financial system for the 21st century that promotes  prosperity and tames the cycle of boom and bust that has engulfed so much  of Asia. This June, I will meet with other world leaders to advance this  historic purpose and I ask all of you to support our endeavors. I also ask  you to support creating a freer and fairer trading system for 21st century  America.  
1999-92	1999	You know, I'd like to say something really serious to everyone in this  chamber in both parties. I think trade has divided us and divided Americans  outside this chamber for too long. Somehow, we have to find a common ground  on which business and workers and environmentalists and farmers and  government can stand together. I believe these are the things we ought to  all agree on. So, let me try.  
1999-93	1999	First, we ought to tear down barriers, open markets and expand trade, but  at the same time, we must ensure that ordinary citizens in all countries  actually benefit from trade; a trade that promotes the dignity of work and  the rights of workers and protects the environment.  
1999-94	1999	We must insist that international trade organizations be open to public  scrutiny instead of mysterious, secret things subject to wild criticism.  
1999-95	1999	When you come right down to it, now that the world economy is becoming more  and more integrated, we have to do in the world what we spent the better  part of this century doing here at home. We have got to put a human face on  the global economy.  
1999-96	1999	Now, we must enforce our trade laws when imports unlawfully flood our  nation. I have already informed the government of Japan if that nation's  sudden surge of steel imports into our country is not reversed, America  will respond.  
1999-97	1999	We must help all manufacturers hit hard by the present crisis with loan  guarantees, and other incentives to increase American exports by nearly $2  billion. I'd like to believe we can achieve a new consensus on trade based  on these principles. And I ask the Congress to join me again in this common  approach and to give the president the trade authority long used and now  overdue and necessary to advance our prosperity in the 21st century.  
1999-98	1999	Tonight, I issue a call to the nations of the world to join the United  States in a new round of global trade negotiation to expand exports of  services, manufactures and farm products.  
1999-99	1999	Tonight, I say, we will work with the International Labor Organization on a  new initiative to raise labor standards around the world. And this year, we  will lead the international community to conclude a treaty to ban abusive  child labor everywhere in the world.  
1999-100	1999	If we do these things--invest in our people, our communities, our  technology--and lead in the global economy, then we will begin to meet our  historic responsibility to build a 21st century prosperity for America.  
1999-101	1999	You know, no nation in history has had the opportunity and the  responsibility we now have to shape a world that is more peaceful, more  secure, more free.  
1999-102	1999	All Americans can be proud that our leadership helped to bring peace in  Northern Ireland.  
1999-103	1999	All Americans can be proud that our leadership has put Bosnia on the path  to peace. And with our NATO allies we are pressing the Serbian government  to stop its brutal repression in Kosovo--to bring those responsible to  justice and to give the people of Kosovo the self-government they deserve.  
1999-104	1999	All Americans can be proud that our leadership renewed hope for lasting  peace in the Middle East. Some of you were with me last December as we  watched the Palestinian National Council completely renounce its call for  the destruction of Israel.  
1999-105	1999	Now, I ask Congress to provide resources so that all parties can implement  the Wye Agreement, to protect Israel's security, to stimulate the  Palestinian economy, to support our friends in Jordan. We must not, we dare  not, let them down. I hope you will help me.  
1999-106	1999	As we work for peace, we must also meet threats to our nation's security,  including increased danger from outlaw nations and terrorism.  
1999-107	1999	We will defend our security wherever we are threatened, as we did this  summer when we struck at Osama bin Laden's network of terror. The bombing  of our embassies in Kenya and Tanzania reminds us again of the risks faced  every day by those who represent America to the world. So let's give them  the support they need, the safest possible workplaces, and the resources  they must have so America can continue to lead.  
1999-108	1999	We must work to keep terrorists from disrupting computer networks. We must  work to prepare local communities for biological and chemical emergencies,  to support research into vaccines and treatments. We must increase our  efforts to restrain the spread of nuclear weapons and missiles, from Korea  to India and Pakistan. We must expand our work with Russia, Ukraine and  other former Soviet nations to safeguard nuclear materials and technology  so they never fall into the wrong hands. Our balanced budget will increase  funding for these critical efforts by almost two-thirds over the next five  years.  
1999-109	1999	With Russia we must continue to reduce our nuclear arsenals. The START II  Treaty and the framework we have already agreed to for START III could cut  them by 80 percent from their Cold War height.  
1999-110	1999	It's been two years since I signed the Comprehensive Test Ban Treaty. If we  don't do the right thing, other nations won't either. I ask the Senate to  take this vital step, approve the treaty now to make it harder for other  nations to develop nuclear arms, and to make sure we can end nuclear  testing for ever.  
1999-111	1999	For nearly a decade, Iraq has defied its obligations to destroy its weapons  of terror and the missiles to deliver them.  
1999-112	1999	America will continue to contain [Iraqi President] Saddam [Hussein] and we  will work for the day when Iraq has a government worthy of its people. Now,  last month, in our action over Iraq, our troops were superb. Their mission  was so flawlessly executed, that we risk taking for granted the bravery and  skill it required. Captain Jeff Taliaferro, a 10-year Air Force veteran of  the Air Force, flew a B-1B bomber over Iraq as we attacked Saddam's war  machine. He is here with us tonight. I would like to ask you to honor him  and all the 33,000 men and women of Operation Desert Fox.  
1999-113	1999	It is time to reverse the decline in defense spending that began in 1985.  
1999-114	1999	Since April, together we have added nearly $6 billion to maintain our  military readiness. My balanced budget calls for a sustained increase over  the next six years for readiness, for modernization, and for pay and  benefits for our troops and their families.  
1999-115	1999	You know, we are the heirs of a legacy of bravery represented in every  community in America by millions of our veterans. America's defenders today  still stand ready at a moments notice to go where comforts are few and  dangers are many, to do what needs to be done as no one else can. They  always come through for America. We must come through for them.  
1999-116	1999	The new century demands new partnerships for peace and security. The United  Nations plays a crucial role, with allies sharing burdens America might  otherwise bear alone. America needs a strong and effective U.N. I want to  work with this new Congress to pay our dues and our debts.  
1999-117	1999	We must continue to support security and stability in Europe and Asia--  expanding NATO and defining its new missions, maintaining our alliance with  Japan, with Korea, with our other Asian allies, and engaging China.  
1999-118	1999	In China last year, I said to the leaders and the people what I'd like to  say again tonight: Stability can no longer be bought at the expense of  liberty.  
1999-119	1999	But I'd also like to say again to the American people, it's important not  to isolate China. The more we bring China into the world, the more the  world will bring change and freedom to China.  
1999-120	1999	Last spring, with some of you, I traveled to Africa, where I saw democracy  and reform rising, but still held back by violence and disease. We must  fortify African democracy and peace by launching radio democracy for  Africa, supporting the transition to democracy now beginning to take place  in Nigeria, and passing the African Trade and Development Act.  
1999-121	1999	We must continue to deepen our ties to the Americas and the Caribbean, our  common work to educate children, fight drugs, strengthen democracy and  increase trade. In this hemisphere, every government but one is freely  chosen by its people. We are determined that Cuba, too, will know the  blessings of liberty.  
1999-122	1999	The American people have opened their arms and their hearts and their arms  to our Central American and Caribbean neighbors who have been so devastated  by the recent hurricanes. Working with Congress, I am committed to help  them rebuild.  
1999-123	1999	When the first lady and Tipper Gore visited the region, they saw thousands  of our troops and thousands of American volunteers. In the Dominican  Republic, Hillary helped to rededicate a hospital that had been rebuilt by  Dominicans and Americans working side by side. With her was some one else  who has been very important to the relief efforts. You know sports records  are made and sooner or later, they're broken. But making other people's  lives better and showing our children the true meaning of brotherhood, that  lasts forever. So for far more than baseball, Sammy Sosa, you're a hero in  two countries tonight. Thank you.  
1999-124	1999	So I say to all of you, if we do these things, if we pursue peace, fight  terrorism, increase our strength, renew our alliances, we will begin to  meet our generation's historic responsibility to build a stronger 21st  century America in a freer, more peaceful world.  
1999-125	1999	As the world has changed, so have our own communities. We must make the  safer, more livable, and more united. This year, we will reach our goal of  100,000 community police officers ahead of schedule and under budget.  
1999-126	1999	The Brady Bill has stopped a quarter million felons, fugitives, and  stalkers from buying handguns and now, the murder rate is the lowest in 30  years, and the crime rate has dropped for six straight years.  
1999-127	1999	Tonight, I propose a 21st Century Crime Bill to deploy the latest  technologies and tactics to make our communities even safer. Our balanced  budget will help put up to 50,000 more police on the street in the areas  hardest hit by crime, and then to equip them with new tools from  crime-mapping computers to digital mug shots. We must break the deadly  cycle of drugs and crime.  
1999-128	1999	Our budget expands support for drug testing and treatment, saying to  prisoners, "If you stay on drugs, you have to stay behind bars." And to  those on parole, "If you want to keep your freedom, you must stay free of  drugs."  
1999-129	1999	I ask Congress to restore the five-day waiting period for buying a handgun  and extend the Brady Bill to prevent juveniles who commit violent crimes  from buying a gun.  
1999-130	1999	We must do more to keep our schools the safest places in our communities.  Last year, every American was horrified and heartbroken by the tragic  killings in Jonesboro, Paducah, Pearl, Edinboro, Springfield. We were  deeply moved by the courageous parents now working to keep guns out of the  hands of children and to make other efforts so that other parents don't  have to live through their loss.  
1999-131	1999	After she lost her daughter, Suzann Wilson of Jonesboro, Arkansas, came  here to the White House with a powerful plea. She said "Please, please for  the sake of your children, lock up your guns. Don't let what happened in  Jonesboro, happen in your town."  
1999-132	1999	It's a message she is passionately advocating every day. Suzann is here  with us tonight, with the first lady. I would like to thank her for her  courage and her commitment.  
1999-133	1999	In memory of all the children who lost their lives to school violence, I  ask you to strengthen the Safe And Drug Free School Act, to pass  legislation to require child trigger locks, to do everything possible to  keep our children safe.  
1999-134	1999	Today, we're--excuse me--a century ago, President Theodore Roosevelt  defined our great central task as leaving this land even a better land for  our descendants than it is for us. Today, we're restoring the Florida  Everglades, saving Yellowstone, preserving the red rock canyons of Utah,  protecting California's redwoods, and our precious coasts.  
1999-135	1999	But our most fateful new challenge is the threat of global warming.  Nineteen ninety-eight was the warmest year ever recorded. Last year's heat  waves, floods and storm are but a hint of what future generations may  endure if we do not act now.  
1999-136	1999	Tonight, I propose a new clean air fund to help communities reduce  greenhouse and other pollutions, and tax incentives and investment to spur  clean energy technologies. And I want to work with members of Congress in  both parties to reward companies that take early, voluntary action to  reduce greenhouse gases.  
1999-137	1999	Now, all our communities face a preservation challenge as they grow, and  green space shrinks. Seven thousand acres of farmland and open space are  lost every day. In response, I propose two major initiatives. First, a $1  billion livability agenda to help communities save open space, ease traffic  congestion, and grow in ways that enhance every citizen's quality of life.  And second, a $1 billion lands legacy initiative to preserve places of  natural beauty all across America, from the most remote wilderness to the  nearest city park.  
1999-138	1999	These are truly landmark initiatives, which could not have been developed  without the visionary leadership of the vice president and I want to thank  him very much for his commitment here. Thank you.  
1999-139	1999	Now, to get the most out of your community, you have to give something  back. That's why we created AmeriCorps, our national service program that  gives today's generation a chance to serve their communities and earn money  for college.  
1999-140	1999	So far, in just four years, 100,000 young Americans have built low-income  homes with Habitat for Humanity, helped tutor children with churches, work  with FEMA to ease the burden of natural disasters and performed countless  other acts of service that has made America better. I ask Congress to give  more young Americans the chance to follow their lead and serve America in  AmeriCorps.  
1999-141	1999	Now, we must work to renew our national community as well for the 21st  century. Last year, the House passed the bipartisan campaign finance reform  legislation sponsored by Representatives [Christopher] Shays (R-Conn.) and  [Martin T.] Meehan (D-Mass.) and Sens. [John] McCain (R-Ariz.) and  [Russell] Feingold (D-Wis.). But a partisan minority in the Senate blocked  reform. So I would like to say to the House, pass it again--quickly.  
1999-142	1999	And I'd like to say to the Senate, I hope you will say yes to a stronger  American democracy in the year 2000.  
1999-143	1999	Since 1997, our Initiative on Race has sought to bridge the divides between  and among our people. In its report last fall, the Initiatives Advisory  Board found that Americans really do want to bring our people together  across racial lines.  
1999-144	1999	We know it's been a long journey. For some it goes back to before the  beginning of our republic. For others, back since the Civil War; for  others, throughout the 21st century. But for most of us alive today, in a  very real sense this journey began 43 years ago, when a woman named Rosa  Parks sat down on a bus in Alabama and wouldn't get up.  
1999-145	1999	She's sitting down with the first lady tonight, and she may get up or not  as she chooses.  
1999-146	1999	We know that our continuing racial problems are aggravated, as the  presidential initiative said, by opportunity gaps.  
1999-147	1999	The initiative I've outlined tonight will help to close them. But we know  that the discrimination gap has not been fully closed either.  Discrimination or violence because of race or religion, ancestry or gender,  disability or sexual orientation, is wrong and it ought to be illegal.  Therefore, I ask Congress to make the Employment Non-Discrimination Act and  the Hate Crimes Prevention Act the law of the land.  
1999-148	1999	You know, now since every person in America counts, every American ought to  be counted. We need a census that uses modern scientific methods to do  that.  
1999-149	1999	Our new immigrants must be part of our one America. After all, they're  revitalizing our cities, they're energizing our culture, they're building  up our economy. We have a responsibility to make them welcome here, and  they have a responsibility to enter the mainstream of American life.  
1999-150	1999	That means learning English and learning about our democratic system of  government. There are now long waiting lines of immigrants that are trying  to do just that.  
1999-151	1999	Therefore, our budget significantly expands our efforts to help them meet  their responsibility. I hope you will support it.  
1999-152	1999	Whether our ancestors came here on the Mayflower, on slave ships; whether  they came to Ellis Island or LAX in Los Angeles; whether they came  yesterday or walked this land 1,000 years ago, our great challenge for the  21st century is to find a way to be one America. We can meet all the other  challenges if we can go forward as one America.  
1999-153	1999	You know, barely more than 300 days from now we will cross that bridge into  the new millennium. This is a moment, as the first lady has said, to honor  the past and imagine the future.  
1999-154	1999	I'd like to take just a minute to honor her, for leading our Millennium  Project, for all she's done for our children. For all she has done in her  historic role to serve our nation and our best ideals at home and abroad, I  honor her.  
1999-155	1999	Last year--last year I called on Congress and every citizen to mark the  millennium by saving America's treasures. Hillary's traveled all across the  country to inspire recognition and support for saving places like Thomas  Edison's invention factory or Harriet Tubman's home.  
1999-156	1999	Now we have to preserve our treasures in every community. And tonight,  before I close, I want to invite every town, every city, every community to  become a nationally recognized millennium community by launching projects  that save our history, promote our arts and humanities, prepare our  children for the 21st century.  
1999-157	1999	Already the response has been remarkable. And I want to say a special word  of thanks to our private sector partners and to members in Congress of both  parties for their support. Just one example. Because of you, the Star  Spangled Banner will be preserved for the ages.  
1999-158	1999	In ways large and small, as we look to the millennium, we are keeping alive  what George Washington called the "sacred fire of liberty."  
1999-159	1999	Six years ago, I came to office in a time of doubt for America, with our  economy troubled, our deficit high, our people divided. Some even wondered  whether our best days were behind us. But across this nation, in a thousand  neighborhoods, I have seen, even amidst the pain and uncertainty of  recession, the real heart and character of America.  
1999-160	1999	I knew then we Americans could renew this country.  
1999-161	1999	Tonight, as I deliver the last State of the Union Address for the 20th  century, no one anywhere in the world can doubt the enduring resolve and  boundless capacity of the American people to work toward that "more perfect  union" of our founders' dreams.  
1999-162	1999	We are now, at the end of a century, when generation after generation of  Americans answered the call to greatness, overcoming Depression, lifting up  the dispossessed, bringing down barriers to racial prejudice, building the  largest middle class in history, winning two world wars and the "long  twilight struggle" of the Cold War.  
1999-163	1999	We must all be profoundly grateful for the magnificent achievements of our  forbearers in this century.  
1999-164	1999	Yet perhaps in the daily press of events, in the clash of controversy, we  don't see our own time for what it truly is--a new dawn for America.  
1999-165	1999	A hundred years from tonight, another American president will stand in this  place and report on the State of the Union. He--or she--will look back on  the 21st century shaped in so many ways by the decisions we make here and  now.  
1999-166	1999	So let it be said of us then that we were thinking not only of our time,  but of their time; that we reached as high as our ideals; that we put aside  our divisions and found a new hour of healing and hopefulness; that we  joined together to serve and strengthen the land we love.  
1999-167	1999	My fellow Americans, this is our moment. Let us lift our eyes as one  nation, and from the mountaintop of this American century, look ahead to  the next one--asking God's blessing on our endeavors and on our beloved  country.  
1999-168	1999	Thank you, and good evening.  
2000-1	2000	Mr. Speaker, Mr. Vice President, Members of Congress, honored guests, my  fellow Americans:  
2000-2	2000	We are fortunate to be alive at this moment in history. Never before has  our nation enjoyed, at once, so much prosperity and social progress with so  little internal crisis or so few external threats. Never before have we had  such a blessed opportunity--and, therefore, such a profound obligation--  to build the more perfect union of our founders' dreams.  
2000-3	2000	We begin the new century with over 20 million new jobs. The fastest  economic growth in more than 30 years; the lowest unemployment rates in 30  years; the lowest poverty rates in 20 years; the lowest African-American  and Hispanic unemployment rates on record; the first back-to-back budget  surpluses in 42 years.  
2000-4	2000	Next month, America will achieve the longest period of economic growth in  our entire history.  
2000-5	2000	We have built a new economy.  
2000-6	2000	Our economic revolution has been matched by a revival of the American  spirit: Crime down by 20 percent, to its lowest level in 25 years. Teen  births down seven years in a row and adoptions up by 30 percent. Welfare  rolls cut in half to their lowest levels in 30 years.  
2000-7	2000	My fellow Americans, the state of our union is the strongest it has ever  been.  
2000-8	2000	As always, the credit belongs to the American people.  
2000-9	2000	My gratitude also goes to those of you in this chamber who have worked with  us to put progress above partisanship.  
2000-10	2000	Eight years ago, it was not so clear to most Americans there would be much  to celebrate in the year 2000. Then our nation was gripped by economic  distress, social decline, political gridlock. The title of a best-selling  book asked: "America: What went wrong?"  
2000-11	2000	In the best traditions of our nation, Americans determined to set things  right. We restored the vital center, replacing outdated ideologies with a  new vision anchored in basic, enduring values: opportunity for all,  responsibility from all, and a community of all Americans.  
2000-12	2000	We reinvented government, transforming it into a catalyst for new ideas  that stress both opportunity and responsibility, and give our people the  tools to solve their own problems.  
2000-13	2000	With the smallest federal workforce in 40 years, we turned record deficits  into record surpluses, and doubled our investment in education. We cut  crime: with 100,000 community police and the Brady Law, which has kept guns  out of the hands of half a million criminals.  
2000-14	2000	We ended welfare as we knew it--requiring work while protecting health  care and nutrition for children, and investing more in child care,  transportation, and housing to help their parents go to work. We have  helped parents to succeed at work and at home--with family leave, which 20  million Americans have used to care for a newborn child or a sick loved  one. We have engaged 150,000 young Americans in citizen service through  AmeriCorps--while also helping them earn their way through college.  
2000-15	2000	In 1992, we had a roadmap. Today, we have results. More important, America  again has the confidence to dream big dreams. But we must not let our  renewed confidence grow into complacency. We will be judged by the dreams  and deeds we pass on to our children. And on that score, we will be held to  a high standard, indeed. Because our chance to do good is so great.  
2000-16	2000	My fellow Americans, we have crossed the bridge we built to the 21st  Century. Now, we must shape a 21st-Century American revolution--of  opportunity, responsibility, and community. We must be, as we were in the  beginning, a new nation.  
2000-17	2000	At the dawn of the last century, Theodore Roosevelt said, "the one  characteristic more essential than any other is foresight. . . It should be  the growing nation with a future which takes the long look ahead."  
2000-18	2000	Tonight let us take our look long ahead--and set great goals for our  nation.  
2000-19	2000	To 21st Century America, let us pledge that:  
2000-20	2000	Every child will begin school ready to learn and graduate ready to succeed.  Every family will be able to succeed at home and at work--and no child  will be raised in poverty. We will meet the challenge of the aging of  America. We will assure quality, affordable healthcare for all Americans.  We will make America the safest big country on earth. We will bring  prosperity to every American community. We will reverse the course of  climate change and leave a cleaner, safer planet. America will lead the  world toward shared peace and prosperity, and the far frontiers of science  and technology. And we will become at last what our founders pledged us to  be so long ago--one nation, under God, indivisible, with liberty and  justice for all.  
2000-21	2000	These are great goals, worthy of a great nation. We will not reach them all  this year. Not even in this decade. But we will reach them. Let us remember  that the first American revolution was not won with a single shot. The  continent was not settled in a single year. The lesson of our history--and  the lesson of the last seven years--is that great goals are reached step  by step: always building on our progress, always gaining ground.  
2000-22	2000	Of course, you can't gain ground if you're standing still. For too long  this Congress has been standing still on some of our most pressing national  priorities. Let's begin with them.  
2000-23	2000	I ask you again to pass a real patient's bill of rights. Pass common-sense  gun-safety legislation. Pass campaign finance reform. Vote on long overdue  judicial nominations and other important appointees. And, again, I ask you  to raise the minimum wage.  
2000-24	2000	Two years ago, as we reached our first balanced budget, I asked that we  meet our responsibility to the next generation by maintaining our fiscal  discipline. Because we refused to stray from that path, we are doing  something that would have seemed unimaginable seven years ago: We are  actually paying down the national debt. If we stay on this path, we can pay  down the debt entirely in 13 years and make America debt-free for the first  time since Andrew Jackson was president in 1835.  
2000-25	2000	In 1993, we began to put our fiscal house in order with the Deficit  Reduction Act, winning passage in both houses by just one vote. Your former  colleague, my first Secretary of the Treasury, led that effort. He is here  tonight. Lloyd Bentsen, you have served America well.  
2000-26	2000	Beyond paying off the debt, we must ensure that the benefits of debt  reduction go to preserving two of the most important guarantees we make to  every American--Social Security and Medicare. I ask you tonight to work  with me to make a bipartisan down payment on Social Security reform by  crediting the interest savings from debt reduction to the Social Security  Trust Fund to ensure that it is strong and sound for the next 50 years.  
2000-27	2000	But this is just the start of our journey. Now we must take the right steps  toward reaching our great goals.  
2000-28	2000	Opportunity and Responsibility in Education  
2000-29	2000	First and foremost, we need a 21st Century revolution in education, guided  by our faith that every child can learn. Because education is more than  ever the key to our children's future, we must make sure all our children  have that key. That means quality preschool and afterschool, the best  trained teachers in every classroom, and college opportunities for all our  children.  
2000-30	2000	For seven years, we have worked hard to improve our schools, with  opportunity and responsibility: Investing more, but demanding more in  return.  
2000-31	2000	Reading, math, and college entrance scores are up. And some of the most  impressive gains are in schools in poor neighborhoods.  
2000-32	2000	All successful schools have followed the same proven formula: higher  standards, more accountability, so all children can reach those standards.  I have sent Congress a reform plan based on that formula. It holds states  and school districts accountable for progress, and rewards them for  results. Each year, the national government invests more than $15 billion  in our schools. It's time to support what works and stop supporting what  doesn't.  
2000-33	2000	As we demand more than ever from our schools, we should invest more than  ever in our schools.  
2000-34	2000	Let's double our investment to help states and districts turn around their  worst-performing schools--or shut them down.  
2000-35	2000	Let's double our investment in afterschool and summer school programs--  boosting achievement, and keeping children off the street and out of  trouble. If we do, we can give every child in every failing school in  America the chance to meet high standards.  
2000-36	2000	Since 1993, we've nearly doubled our investment in Head Start and improved  its quality. Tonight, I ask for another $1 billion to Head Start, the  largest increase in the program's history.  
2000-37	2000	We know that children learn best in smaller classes with good teachers. For  two years in a row, Congress has supported my plan to hire 100,000 new,  qualified teachers, to lower class sizes in the early grades. This year, I  ask you to make it three in a row.  
2000-38	2000	And to make sure all teachers know the subjects they teach, tonight I  propose a new teacher quality initiative--to recruit more talented people  into the classroom, reward good teachers for staying there, and give all  teachers the training they need.  
2000-39	2000	We know charter schools provide real public school choice. When I became  President, there was just one independent public charter school in all  America. Today there are 1,700. I ask you to help us meet our goal of 3,000  by next year.  
2000-40	2000	We know we must connect all our classrooms to the Internet. We're getting  there. In 1994, only three percent of our classrooms were connected. Today,  with the help of the Vice President's E-rate program, more than half of  them are; and 90 percent of our schools have at least one connection to the  Internet.  
2000-41	2000	But we can't finish the job when a third of all schools are in serious  disrepair, many with walls and wires too old for the Internet. Tonight, I  propose to help 5,000 schools a year make immediate, urgent repairs. And  again, to help build or modernize 6,000 schools, to get students out of  trailers and into high-tech classrooms.  
2000-42	2000	We should double our bipartisan GEAR UP program to mentor 1.4 million  disadvantaged young people for college. And let's offer these students a  chance to take the same college test-prep courses wealthier students use to  boost their test scores.  
2000-43	2000	To make the American Dream achievable for all, we must make college  affordable for all. For seven years, on a bipartisan basis, we have taken  action toward that goal: larger Pell grants, more-affordable student loans,  education IRAs, and our HOPE scholarships, which have already benefited 5  million young people. 67 percent of high school graduates now go on to  college, up almost 10 percent since 1993. Yet millions of families still  strain to pay college tuition. They need help.  
2000-44	2000	I propose a landmark $30-billion college opportunity tax cut--a  middle-class tax deduction for up to $10,000 in college tuition costs.  We've already made two years of college affordable for all. Now let's make  four years of college affordable for all.  
2000-45	2000	If we take all these steps, we will move a long way toward making sure  every child starts school ready to learn and graduates ready to succeed.  
2000-46	2000	Rewarding Work and Strengthening Families  
2000-47	2000	We need a 21st Century revolution to reward work and strengthen families--  by giving every parent the tools to succeed at work and at the most  important work of all--raising their children. That means making sure that  every family has health care and the support to care for aging parents, the  tools to bring their children up right, and that no child grows up in  poverty.  
2000-48	2000	From my first days as President, we have worked to give families better  access to better health care. In 1997, we passed the Children's Health  Insurance Program--CHIP--so that workers who don't have health care  coverage through their employers at least can get it for their children. So  far, we've enrolled 2 million children, and we're well on our way to our  goal of 5 million.  
2000-49	2000	But there are still more than 40 million Americans without health  insurance, more than there were in 1993. Tonight I propose that we follow  Vice President Gore's suggestion to make low income parents eligible for  the insurance that covers their kids. Together with our children's  initiative, we can cover nearly one quarter of the uninsured in America.  
2000-50	2000	Again, I ask you to let people between 55 and 65--the fastest growing  group of uninsured--buy into Medicare. And let's give them a tax credit to  make that choice an affordable one.  
2000-51	2000	When the Baby Boomers retire, Medicare will be faced with caring for twice  as many of our citizens--and yet it is far from ready to do so. My  generation must not ask our children's generation to shoulder our burden.  We must strengthen and modernize Medicare now.  
2000-52	2000	My budget includes a comprehensive plan to reform Medicare, to make it more  efficient and competitive. And it dedicates nearly $400 billion of our  budget surplus to keep Medicare solvent past 2025; and, at long last, to  give every senior a voluntary choice of affordable coverage for  prescription drugs.  
2000-53	2000	Lifesaving drugs are an indispensable part of modern medicine. No one  creating a Medicare program today would even consider excluding coverage  for prescription drugs. Yet more than three in five seniors now lack  dependable drug coverage which can lengthen and enrich their lives.  Millions of older Americans who need prescription drugs the most pay the  highest prices for them.  
2000-54	2000	In good conscience, we cannot let another year pass without extending to  all seniors the lifeline of affordable prescription drugs.  
2000-55	2000	Record numbers of Americans are providing for aging or ailing loved ones at  home. Last year, I proposed a $1,000 tax credit for long-term care.  Frankly, that wasn't enough. This year, let's triple it to $3,000--and  this year, let's pass it.  
2000-56	2000	And we must make needed investments to expand access to mental health care.  I want to thank the person who has led our efforts to break down the  barriers to the decent treatment of mental illness: Tipper Gore.  
2000-57	2000	Taken together, these proposals would mark the largest investment in health  care in the 35 years since the creation of Medicare--a big step toward  assuring health care for all Americans, young and old.  
2000-58	2000	We must also make investments that reward work and support families.  Nothing does that better than the Earned Income Tax Credit, the EITC. The  "E" in "EITC" is about earning; working; taking responsibility and being  rewarded for it. In my first Address to you, I asked Congress to greatly  expand this tax credit; and you did. As a result, in 1998 alone, the EITC  helped more than 4.3 million Americans work their way out of poverty and  toward the middle class--double the number in 1993.  
2000-59	2000	Tonight, I propose another major expansion. We should reduce the marriage  penalty for the EITC, making sure it rewards marriage just as it rewards  work. And we should expand the tax credit for families with more than two  children to provide up to $1,100 more in tax relief.  
2000-60	2000	We can't reward work and family unless men and women get equal pay for  equal work. The female unemployment rate is the lowest in 46 years. Yet  women still earn only about 75 cents for every dollar men earn. We must do  better by providing the resources to enforce present equal pay laws,  training more women for high-paying, high-tech jobs, and passing the  Paycheck Fairness Act.  
2000-61	2000	Two-thirds of new jobs are in the suburbs, far away from many low-income  families. In the past two years, I have proposed and Congress has approved  110,000 new housing vouchers--rent subsidies to help working families live  closer to the workplace. This year, let us more than double that number. If  we want people to go to work, they have to be able to get to work.  
2000-62	2000	Many working parents spend up to a quarter of their income on child care.  Last year, we helped parents provide child care for about two million  children. My child care initiative, along with funds already secured in  welfare reform, would make child care better, safer, and more affordable  for another 400,000 children.  
2000-63	2000	For hard-pressed middle-income families, we should also expand the child  care tax credit. And we should take the next big step. We should make that  tax credit refundable for low-income families. For those making under  $30,000 a year, that could mean up to $2,400 for child-care costs. We all  say we're pro-work and pro-family. Passing this proposal would prove it.  
2000-64	2000	Tens of millions of Americans live from paycheck to paycheck. As hard as  they work, they still don't have the opportunity to save. Too few can make  use of IRAs and 401-K retirement plans. We should do more to help working  families save and accumulate wealth. That's the idea behind so-called  Individual Development Accounts. Let's take that idea to a new level, with  Retirement Savings Accounts that enable every low- and moderate-income  family in America to save for retirement, a first home, a medical  emergency, or a college education. I propose to match their contributions,  however small, dollar for dollar, every year they save. And to give a major  new tax credit for any small business that provides a meaningful pension to  its workers.  
2000-65	2000	Nearly one in three American children grows up in a home without a father.  These children are five times more likely to live in poverty than children  with both parents at home. Clearly, demanding and supporting responsible  fatherhood is critical to lifting all children out of poverty.  
2000-66	2000	We have doubled child support collections since 1992, and I am proposing  tough new measures to hold still more fathers responsible. But we should  recognize that a lot of fathers want to do right by their children--and  need help to do it. Carlos Rosas of St. Paul, Minnesota, got that help. Now  he has a good job and he supports his son Ricardo. My budget will help  40,000 fathers make the choices Carlos did. And I thank him for being  here.  
2000-67	2000	If there is any issue on which we can reach across party lines it is in our  common commitment to reward work and strengthen families. Thanks to  overwhelming bipartisan support from this Congress, we have improved foster  care, supported those who leave it when they turn eighteen, and  dramatically increased the number of foster children going to adoptive  homes. I thank you for that. Of course, I am especially grateful to the  person who has led our efforts from the beginning, and who has worked  tirelessly for children and families for thirty years now: my wife,  Hillary.  
2000-68	2000	If we take all these steps, we will move a long way toward empowering  parents to succeed at home and at work and ensuring that no child is raised  in poverty. We can make these vital investments in health care, education  and support for working families--and still offer tax cuts to help pay for  college, for retirement, to care for aging parents and reduce the marriage  penalty--without forsaking the path of fiscal discipline that got us here.  Indeed, we must make these investments and tax cuts in the context of a  balanced budget that strengthens and extends the life of Social Security  and Medicare and pays down the national debt.  
2000-69	2000	Responsibility and Crime  
2000-70	2000	Crime in America has dropped for the past seven years--the longest decline  on record, thanks to a national consensus we helped to forge on community  police, sensible gun safety laws, and effective prevention. But nobody  believes America is safe enough. So let's set a higher goal: let's make  America the safest big country in the world.  
2000-71	2000	Last fall, Congress supported my plan to hire--in addition to the 100,000  community police we have already funded--50,000 more, concentrated in  high-crime neighborhoods. I ask your continued support.  
2000-72	2000	Soon after the Columbine tragedy, Congress considered common-sense gun  safety legislation to require Brady background checks at gun shows, child  safety locks for all new handguns, and a ban on the importation of  large-capacity ammunition clips. With courage--and a tie-breaking vote by  the Vice President--the Senate faced down the gun lobby, stood up for the  American people, and passed this legislation. But the House failed to  follow suit.  
2000-73	2000	We've all seen what happens when guns fall into the wrong hands. Daniel  Mauser was only 15 years old when he was gunned down at Columbine. He was  an amazing kid, a straight-A student, a good skier. Like all parents who  lose their children, his father Tom has borne unimaginable grief. Somehow  Tom has found the strength to honor his son by transforming his grief into  action. Earlier this month, he took a leave of absence from his job to  fight for tougher gun safety laws. I pray that his courage and wisdom will  move this Congress to make common-sense gun safety legislation the very  next order of business. Tom, thank you for being here tonight.  
2000-74	2000	We must strengthen gun laws and better enforce laws already on the books.  Federal gun crime prosecutions are up 16 percent since I took office. But  again, we must do more. I propose to hire more federal and local gun  prosecutors, and more ATF agents to crack down on illegal gun traffickers  and bad-apple dealers. And we must give law enforcement the tools to trace  every gun--and every bullet--used in a crime in America.  
2000-75	2000	Listen to this: the accidental gun death rate of children under 15 in the  United States is nine times higher than in the other 25 industrialized  nations--combined. Technologies now exist that could lead to guns that can  only be fired by the adults who own them. I ask Congress to fund research  in Smart Gun technology. I also call on responsible leaders in the gun  industry to work with us on smart guns and other steps to keep guns out of  the wrong hands and keep our children safe.  
2000-76	2000	Every parent I know worries about the impact of violence in the media on  their children. I thank the entertainment industry for accepting my  challenge to put voluntary ratings on TV programs and video and Internet  games. But the ratings are too numerous, diverse, and confusing to be  really useful to parents. Therefore, I now ask the industry to accept the  First Lady's challenge--to develop a single, voluntary rating system for  all children's entertainment, one that is easier for parents to understand  and enforce.  
2000-77	2000	If we take all these steps, we will be well on our way to making America  the safest big country in the world.  
2000-78	2000	Opening New Markets  
2000-79	2000	To keep our historic economic expansion going, we need a 21st Century  revolution to open new markets, start new businesses, and hire new workers  right here in America--in our inner cities, poor rural areas, and on  Indian reservations.  
2000-80	2000	Our nation's prosperity has not yet reached these places. Over the last six  months, I have traveled to many of them--joined by many of you, and many  far-sighted business people--to shine a spotlight on the enormous  potential in communities from Appalachia to the Mississippi Delta, from  Watts to the Pine Ridge Indian Reservation. Everywhere I've gone, I've met  talented people eager for opportunity, and able to work. Let's put them to  work.  
2000-81	2000	For business, it's the smart thing to do. For America, it's the right thing  to do. And if we don't do it now, when will we ever get around to it?  
2000-82	2000	I ask Congress to give businesses the same incentives to invest in  America's new markets that they now have to invest in foreign markets.  Tonight, I propose a large New Markets Tax Credit and other incentives to  spur $22 billion in private-sector capital--to create new businesses and  new investments in inner cities and rural areas.  
2000-83	2000	Empowerment Zones have been creating these opportunities for five years  now. We should also increase incentives to invest in them and create more  of them.  
2000-84	2000	This is not a Democratic or a Republican issue. It is an American issue.  Mr. Speaker, it was a powerful moment last November when you joined me and  the Reverend Jesse Jackson in your home state of Illinois, and committed to  working toward our common goal, by combining the best ideas from both sides  of the aisle. Mr. Speaker, I look forward to working with you.  
2000-85	2000	We must maintain our commitment to community development banks and keep the  community reinvestment act strong so all Americans have access to the  capital they need to buy homes and build businesses.  
2000-86	2000	We need to make special efforts to address the areas with the highest rates  of poverty. My budget includes a special $110 million initiative to promote  economic development in the Mississippi Delta; and $1 billion to increase  economic opportunity, health care, education and law enforcement for Native  American communities. In this new century, we should honor our historic  responsibility to empower the first Americans. I thank leaders and members  from both parties who have already expressed an interest in working with us  on these efforts.  
2000-87	2000	There's another part of our American community in trouble today--our  family farmers. When I signed the Farm Bill in 1996, I said there was a  great danger it would work well in good times but not in bad. Well,  droughts, floods, and historically low prices have made times very bad for  our farmers. We must work together to strengthen the farm safety net,  invest in land conservation, and create new markets by expanding our  program for bio-based fuels and products.  
2000-88	2000	Today, opportunity for all requires something new: having access to a  computer and knowing how to use it. That means we must close the digital  divide between those who have these tools and those who don't.  
2000-89	2000	Connecting classrooms and libraries to the Internet is crucial, but it's  just a start. My budget ensures that all new teachers are trained to teach  21st Century skills and creates technology centers in 1,000 communities to  serve adults. This spring, I will invite high-tech leaders to join me on  another New Markets tour--to close the digital divide and open opportunity  for all our people. I thank the high-tech companies that are already doing  so much in this area--and I hope the new tax incentives I have proposed  will encourage others to join us.  
2000-90	2000	If we take these steps, we will go a long way toward our goal of bringing  opportunity to every community.  
2000-91	2000	Global Change and American Leadership  
2000-92	2000	To realize the full possibilities of the new economy, we must reach beyond  our own borders, to shape the revolution that is tearing down barriers and  building new networks among nations and individuals, economies and  cultures: globalization.  
2000-93	2000	It is the central reality of our time. Change this profound is both  liberating and threatening. But there is no turning back. And our open,  creative society stands to benefit more than any other--if we understand,  and act on, the new realities of interdependence. We must be at the center  of every vital global network, as a good neighbor and partner. We cannot  build our future without helping others to build theirs.  
2000-94	2000	First, we must forge a new consensus on trade. Those of us who believe  passionately in the power of open trade must ensure that it lifts both our  living standards and our values, never tolerating abusive child labor or a  race to the bottom on the environment and worker protection. Still, open  markets and rules-based trade are the best engines we know for raising  living standards, reducing global poverty and environmental destruction,  and assuring the free flow of ideas. There is only one direction for  America on trade: we must go forward.  
2000-95	2000	And we must make developing economies our partners in prosperity--which is  why I ask Congress to finalize our groundbreaking African and Caribbean  Basin trade initiatives.  
2000-96	2000	Globalization is about more than economics. Our purpose must be to bring  the world together around democracy, freedom, and peace, and to oppose  those who would tear it apart.  
2000-97	2000	Here are the fundamental challenges I believe America must meet to shape  the 21st Century world.  
2000-98	2000	First, we must continue to encourage our former adversaries, Russia and  China, to emerge as stable, prosperous, democratic nations. Both are being  held back from reaching their full potential: Russia by the legacy of  communism, economic turmoil, a cruel and self-defeating war in Chechnya;  China by the illusion that it can buy stability at the expense of freedom.  But think how much has changed in the past decade: thousands of former  Soviet nuclear weapons eliminated; Russian soldiers serving with ours in  the Balkans; Russian people electing their leaders for the first time in a  thousand years. And in China, an economy more open to the world than ever  before. No one can know for sure what direction these great countries will  choose. But we must do everything in our power to increase the chance they  will choose wisely, to be constructive members of the global community.  
2000-99	2000	That is why we must support those Russians struggling for a democratic,  prosperous future; continue to reduce both our nuclear arsenals; and help  Russia safeguard weapons and materials that remain.  
2000-100	2000	That is why Congress should support the agreement we negotiated to bring  China into the WTO, by passing Permanent Normal Trade Relations as soon as  possible this year. Our markets are already open to China. This agreement  will open China's markets to us. And it will advance the cause of peace in  Asia and promote the cause of change in China.  
2000-101	2000	A second challenge is to protect our security from conflicts that pose the  risk of wider war and threaten our common humanity. America cannot prevent  every conflict or stop every outrage. But where our interests are at stake  and we can make a difference, we must be peacemakers.  
2000-102	2000	We should be proud of America's role in bringing the Middle East closer  than ever to a comprehensive peace; building peace in Northern Ireland;  working for peace in East Timor and Africa; promoting reconciliation  between Greece and Turkey and in Cyprus; working to defuse crises between  India and Pakistan; defending human rights and religious freedom.  
2000-103	2000	And we should be proud of the men and women of our armed forces and those  of our allies who stopped the ethnic cleansing in Kosovo--enabling a  million innocent people to return to their homes.  
2000-104	2000	When Slobodan Milosevic unleashed his terror on Kosovo, Captain John  Cherrey was one of the brave airmen who turned the tide. And when another  American plane went down over Serbia, he flew into the teeth of enemy air  defenses to bring his fellow pilot home. Thanks to our armed forces' skill  and bravery, we prevailed without losing a single American in combat.  Captain Cherrey, we honor you, and promise to finish the job you began.  
2000-105	2000	A third challenge is to keep the inexorable march of technology from giving  terrorists and potentially hostile nations the means to undermine our  defenses. The same advances that have shrunk cell phones to fit in the  palms of our hands can also make weapons of terror easier to conceal and  easier to use.  
2000-106	2000	We must meet this threat: by making effective agreements to restrain  nuclear and missile programs in North Korea, curbing the flow of lethal  technology to Iran; preventing Iraq from threatening its neighbors;  increasing our preparedness against chemical and biological attack;  protecting our vital computer systems from hackers and criminals; and  developing a system to defend against new missile threats--while working  to preserve our Anti-Ballistic Missile Treaty with Russia.  
2000-107	2000	I hope we can have a constructive bipartisan dialogue this year to build a  consensus which will lead eventually to the ratification of the  Comprehensive Nuclear Test Ban Treaty.  
2000-108	2000	A fourth challenge is to ensure that the stability of our planet is not  threatened by the huge gulf between rich and poor. We cannot accept a world  in which part of humanity lives on the cutting edge of a new economy, while  the rest live on the bare edge of survival. We must do our part, with  expanded trade, expanded aid, and the expansion of freedom.  
2000-109	2000	From Nigeria to Indonesia, more people won the right to choose their  leaders in 1999 than in 1989, the year the Berlin Wall fell. We must stand  by democracies--like Colombia, fighting narco-traffickers for its people's  lives, and our children's lives. I have proposed a strong two-year package  to help Colombia win this fight; and I ask for your support. And I will  propose tough new legislation to go after what drug barons value most--  their money.  
2000-110	2000	In a world where 1.2 billion people live on less than a dollar a day, we  must do our part in the global endeavor to reduce the debts of the poorest  countries so they can invest in education, health and economic growth--as  the Pope and other religious leaders have urged. Last year, Congress made a  down payment on America's share. And I ask for your continued support.  
2000-111	2000	And America must help more nations break the bonds of disease. Last year in  Africa, AIDS killed ten times as many people as war did. My budget invests  $150 million more in the fight against this and other infectious killers.  Today, I propose a tax credit to speed the development of vaccines for  diseases like malaria, TB and AIDS. I ask the private sector and our  partners around the world to join us in embracing this cause. Together, we  can save millions of lives.  
2000-112	2000	Our final challenge is the most important: to pass a national security  budget that keeps our military the best trained and best equipped in the  world, with heightened readiness and 21st Century weapons; raises salaries  for our service men and women; protects our veterans; fully funds the  diplomacy that keeps our soldiers out of war; and makes good on our  commitment to pay our UN dues and arrears. I ask you to pass this budget  and I thank you for the extraordinary support you have given--Republicans  and Democrats alike--to our men and women in uniform. I especially want to  thank Secretary Cohen for symbolizing our bipartisan commitment to our  national security--and Janet Cohen, I thank you for tirelessly traveling  the world to show our support for the troops.  
2000-113	2000	If we meet all these challenges, America can lead the world toward peace  and freedom in an era of globalization.  
2000-114	2000	Responsibility, Opportunity, and the Environment  
2000-115	2000	I am grateful for the opportunities the Vice President and I have had to  work hard to protect the environment and finally to put to rest the notion  that you can't expand the economy while protecting the environment. As our  economy has grown, we have rid more than 500 neighborhoods of toxic waste  and ensured cleaner air and water for millions of families. In the past  three months alone, we have acted to preserve more than 40 million acres of  roadless lands in our National Forests and created three new National  Monuments.  
2000-116	2000	But as our communities grow, our commitment to conservation must grow as  well. Tonight, I propose creating a permanent conservation fund to restore  wildlife, protect coastlines, and save natural treasures from California  redwoods to the Everglades. This Lands Legacy endowment represents by far  the most enduring investment in land preservation ever proposed.  
2000-117	2000	Last year, the Vice President launched a new effort to help make  communities more livable--so children will grow up next to parks, not  parking lots, and parents can be home with their children instead of stuck  in traffic. Tonight, we propose new funding for advanced transit systems--  for saving precious open spaces--for helping major cities around the Great  Lakes protect their waterways and enhance their quality of life.  
2000-118	2000	The greatest environmental challenge of the new century is global warming.  Scientists tell us that the 1990s were the hottest decade of the entire  millennium. If we fail to reduce emissions of greenhouse gases, deadly heat  waves and droughts will become more frequent, coastal areas will be  flooded, economies disrupted.  
2000-119	2000	Many people in the United States and around the world still believe we  can't cut greenhouse gas pollution without slowing economic growth. In the  Industrial Age that may have been true. In the digital economy, it isn't.  New technologies make it possible to cut harmful emissions and provide even  more growth. For example, just last week, automakers unveiled cars that get  70 to 80 miles a gallon--the fruits of a unique research partnership  between government and industry. Before you know it, efficient production  of biofuels will give us the equivalent of hundreds of miles from a gallon  of gas.  
2000-120	2000	To speed innovations in environmental technologies, I propose giving major  tax incentives to businesses for the production of clean energy--and to  families for buying energy-saving homes and appliances and the next  generation of super-efficient cars when they hit the showroom floor. I also  call on the auto industry to use available technologies to make all new  cars more fuel efficient right away. And on Congress to make more of our  clean-energy technologies available to the developing world--creating  cleaner growth abroad and new jobs at home.  
2000-121	2000	The Opportunity and Responsibility of Science and Technology  
2000-122	2000	In the new century, innovations in science and technology will be the key  not only to the health of the environment but to miraculous improvements in  the quality of our lives and advances in the economy.  
2000-123	2000	Later this year, researchers will complete the first draft of the entire  human genome--the very blueprint of life. It is important for all  Americans to recognize that your tax dollars have fueled this research--  and that this and other wise investments in science are leading to a  revolution in our ability to detect, treat, and prevent disease.  
2000-124	2000	For example, researchers have identified genes that cause Parkinson's  Disease, diabetes, and certain types of cancer--and they are designing  precision therapies that will block the harmful effects of these faulty  genes for good. Researchers are already using this new technique to target  and destroy cells that cause breast cancer. Soon, we may be able to use it  to prevent the onset of Alzheimer's Disease. Scientists are also working on  an artificial retina to help many blind people to see and microchips that  would directly stimulate damaged spinal cords and allow people who are now  paralyzed to stand up and walk.  
2000-125	2000	Science and engineering innovations are also propelling our remarkable  prosperity. Information technology alone now accounts for a third of our  economic growth, with jobs that pay almost 80 percent above the private  sector average. Again, we should keep in mind: government-funded research  brought supercomputers, the Internet, and communications satellites into  being. Soon researchers will bring us devices that can translate foreign  languages as fast as you can speak; materials 10 times stronger than steel  at a fraction of the weight; and molecular computers the size of a teardrop  with the power of today's fastest supercomputers.  
2000-126	2000	To accelerate the march of discovery across all disciplines of science and  technology, my budget includes an unprecedented $3 billion increase in the  21st Century Research Fund, the largest increase in civilian research in a  generation.  
2000-127	2000	These new breakthroughs must be used in ways that reflect our most  cherished values. First and foremost, we must safeguard our citizens'  privacy. Last year, we proposed rules to protect every citizen's medical  records. This year, we will finalize those rules. We have also taken the  first steps to protect the privacy of bank and credit card statements and  other financial records. Soon I will send legislation to the Congress to  finish that job. We must also act to prevent any genetic discrimination by  employers or insurers.  
2000-128	2000	These steps will allow America to lead toward the far frontiers of science  and technology--enhancing our health, environment, and economy in ways we  cannot even imagine today.  
2000-129	2000	Community  
2000-130	2000	At a time when science, technology and the forces of globalization are  bringing so many changes into our lives, it is more important than ever  that we strengthen the bonds that root us in our local communities and in  our national communities.  
2000-131	2000	No tie binds different people together like citizen service. There is a new  spirit of service in America--a movement we have supported with  AmeriCorps, an expanded Peace Corps, and unprecedented new partnerships  with businesses, foundations, and community groups. Partnerships to enlist  12,000 companies in moving 650,000 of our fellow citizens from welfare to  work. To battle drug abuse and AIDS. To teach young people to read. To Save  America's Treasures. To strengthen the arts. To fight teen pregnancy. To  prevent youth violence. To promote racial healing.  
2000-132	2000	We can do even more to help Americans help each other. We should help  faith-based organizations do more to fight poverty and drug abuse and help  young people get back on the right track with initiatives like Second  Chance Homes to help unwed teen mothers. We should support Americans who  tithe and contribute to charities, but don't earn enough to claim a tax  deduction for it. Tonight, I propose new tax incentives to allow low- and  middle-income citizens to get that deduction.  
2000-133	2000	We should do more to help new immigrants fully participate in the American  community--investing more to teach them civics and English. And since  everyone in our community counts, we must make sure everyone is counted in  this year's census.  
2000-134	2000	Within ten years there will be no majority race in our largest state,  California. In a little more than 50 years, there will be no majority race  in America. In a more interconnected world, this diversity can be our  greatest strength. Just look around this chamber. We have members from  virtually every racial, ethnic, and religious background. And America is  stronger for it. But as we have seen, these differences all too often spark  hatred and division, even here at home.  
2000-135	2000	We have seen a man dragged to death in Texas simply because he was black. A  young man murdered in Wyoming simply because he was gay. In the last year  alone, we've seen the shootings of African Americans, Asian Americans, and  Jewish children simply because of who they were. This is not the American  way. We must draw the line. Without delay, we must pass the Hate Crimes  Prevention Act and the Employment Non-Discrimination Act. And we should  reauthorize the Violence Against Women Act.  
2000-136	2000	No American should be subjected to discrimination in finding a home,  getting a job, going to school, or securing a loan. Tonight, I propose the  largest ever investment to enforce America's civil rights laws. Protections  in law must be protections in fact.  
2000-137	2000	Last February, I created the White House Office of One America to promote  racial reconciliation. That's what Hank Aaron, has done all his life. From  his days as baseball's all-time homerun king to his recent acts of healing,  he has always brought Americans together. We're pleased he's with us  tonight.  
2000-138	2000	This fall, at the White House, one of America's leading scientists said  something we should all remember. He said all human beings, genetically,  are 99.9 percent the same. So modern science affirms what ancient faith has  always taught: the most important fact of life is our common humanity.  
2000-139	2000	Therefore, we must do more than tolerate diversity--we must honor it and  celebrate it.  
2000-140	2000	My fellow Americans, each time I prepare for the State of the Union, I  approach it with great hope and expectations for our nation. But tonight is  special--because we stand on the mountaintop of a new millennium. Behind  us we see the great expanse of American achievement; before us, even  grander frontiers of possibility.  
2000-141	2000	We should be filled with gratitude and humility for our prosperity and  progress; with awe and joy at what lies ahead; and with absolute  determination to make the most of it.  
2000-142	2000	When the framers finished crafting our Constitution, Benjamin Franklin  stood in Independence Hall and reflected on a painting of the sun, low on  the horizon. He said, "I have often wondered whether that sun was rising or  setting. Today," Franklin said, "I have the happiness to know it is a  rising sun." Well, today, because each generation of Americans has kept the  fire of freedom burning brightly, lighting those frontiers of possibility,  we still bask in the warmth of Mr. Franklin's rising sun.  
2000-143	2000	After 224 years, the American Revolution continues. We remain a new nation.  As long as our dreams outweigh our memories, America will be forever young.  That is our destiny. And this is our moment.  
2000-144	2000	Thank you, God bless you, and God bless America.  
2001-1	2001	Mr. Speaker, Mr. Vice President, members of Congress: It's a great privilege to be here to outline a new budget and a new approach for governing our great country. I thank you for your invitation to speak here tonight. I know Congress had to formally invite me, and it could have been a close vote. So, Mr. Vice President, I appreciate you being here to break the tie.  
2001-2	2001	I want to thank so many of you who have accepted my invitation to come to the White House to discuss important issues. We're off to a good start. I will continue to meet with you and ask for your input. You have been kind and candid, and I thank you for making a new President feel welcome.  
2001-3	2001	The last time I visited the Capitol, I came to take an oath on the steps of this building. I pledged to honor our Constitution and laws. And I asked you to join me in setting a tone of civility and respect in Washington.  
2001-4	2001	I hope America is noticing the difference, because we're making progress. Together, we are changing the tone in the Nation's Capital. And this spirit of respect and cooperation is vital, because, in the end, we will be judged not only by what we say or how we say it, we will be judged by what we're able to accomplish.  
2001-5	2001	America today is a nation with great challenges, but greater resources. An artist using statistics as a brush could paint two very different pictures of our country. One would have warning signs: increasing layoffs, rising energy prices, too many failing schools, persistent poverty, the stubborn vestiges of racism. Another picture would be full of blessings: a balanced budget, big surpluses, a military that is second to none, a country at peace with its neighbors, technology that is revolutionizing the world, and our greatest strength -- concerned citizens who care for our country and care for each other.  
2001-6	2001	Neither picture is complete in and of itself. And tonight I challenge and invite Congress to work with me to use the resources of one picture to repaint the other; to direct the advantages of our time to solve the problems of our people. Some of these resources will come from government. Some, but not all.  
2001-7	2001	Year after year in Washington, budget debates seem to come down to an old, tired argument: on one side, those who want more government, regardless of the cost; on the other, those who want less government, regardless of the need. We should leave those arguments to the last century, and chart a different course.  
2001-8	2001	Government has a role, and an important role. Yet, too much government crowds out initiative and hard work, private charity and the private economy. Our new governing vision says government should be active, but limited; engaged, but not overbearing. And my budget is based on that philosophy.  
2001-9	2001	It is reasonable, and it is responsible. It meets our obligations, and funds our growing needs. We increase spending next year for Social Security and Medicare, and other entitlement programs, by $81 billion. We've increased spending for discretionary programs by a very responsible 4 percent, above the rate of inflation. My plan pays down an unprecedented amount of our national debt. And then, when money is still left over, my plan returns it to the people who earned it in the first place.  
2001-10	2001	A budget's impact is counted in dollars, but measured in lives. Excellent schools, quality health care, a secure retirement, a cleaner environment, a stronger defense -- these are all important needs, and we fund them. The highest percentage increase in our budget should go to our children's education. Education is not my top priority -- education is my top priority and, by supporting this budget, you'll make it yours, as well.  
2001-11	2001	Reading is the foundation of all learning. So during the next five years, we triple spending, adding $5 billion to help every child in America learn to read. Values are important, so we've tripled funding for character education to teach our children not only reading and writing, but right from wrong.  
2001-12	2001	We've increased funding to train and recruit teachers, because we know a good education starts with a good teacher. And I have a wonderful partner in this effort. I like teachers so much, I married one. Laura has begun a new effort to recruit Americans to the profession that will shape our future -- teaching. She will travel across America to promote sound teaching practices and early reading skills in our schools and in programs such as Head Start.  
2001-13	2001	When it comes to our schools, dollars alone do not always make the difference. Funding is important, and so is reform. So we must tie funding to higher standards and accountability for results.  
2001-14	2001	I believe in local control of schools. We should not, and we will not, run public schools from Washington, D.C. Yet when the federal government spends tax dollars, we must insist on results. Children should be tested on basic reading and math skills every year between grades three and eight. Measuring is the only way to know whether all our children are learning. And I want to know, because I refuse to leave any child behind in America.  
2001-15	2001	Critics of testing contend it distracts from learning. They talk about teaching to the test. But let's put that logic to the test. If you test a child on basic math and reading skills, and you're teaching to the test, you're teaching math and reading. And that's the whole idea. As standards rise, local schools will need more flexibility to meet them. So we must streamline the dozens of federal education programs into five, and let states spend money in those categories as they see fit.  
2001-16	2001	Schools will be given a reasonable chance to improve and the support to do so. Yet, if they don't, if they continue to fail, we must give parents and students different options -- a better public school, a private school, tutoring or a charter school. In the end, every child in a bad situation must be given a better choice because, when it comes to our children, failure is simply not an option.  
2001-17	2001	Another priority in my budget is to keep the vital promises of Medicare and Social Security, and together we will do so. To meet the health care needs of all America's seniors, we double the Medicare budget over the next 10 years. My budget dedicates $238 billion to Medicare next year alone, enough to fund all current programs and to begin a new prescription drug benefit for low-income seniors. No senior in America should have to choose between buying food and buying prescriptions.  
2001-18	2001	To make sure the retirement savings of America's seniors are not diverted in any other program, my budget protects all $2.6 trillion of the Social Security surplus for Social Security, and for Social Security alone.  
2001-19	2001	My budget puts a priority on access to health care, without telling Americans what doctor they have to see or what coverage they must choose. Many working Americans do not have health care coverage, so we will help them buy their own insurance with refundable tax credits. And to provide quality care in low-income neighborhoods, over the next five years we will double the number of people served at community health care centers.  
2001-20	2001	And we will address the concerns of those who have health coverage, yet worry their insurance company doesn't care and won't pay. Together this Congress and this President will find common ground to make sure doctors make medical decisions, and patients get the health care they deserve with a patients' bill of rights.  
2001-21	2001	When it comes to their health, people want to get the medical care they need, not be forced to go to court because they didn't get it. We will ensure access to the courts for those with legitimate claims. But first, let's put in place a strong, independent review so we promote quality health care, not frivolous lawsuits.  
2001-22	2001	My budget also increases funding for medical research, which gives hope to many who struggle with serious disease. Our prayers tonight are with one of your own who is engaged in his own fight against cancer -- a fine representative, and a good man, Congressman Joe Moakley. I can think of no more appropriate tribute to Joe than to have the Congress finish the job of doubling the budget for the National Institutes of Health.  
2001-23	2001	My new Freedom Initiative for Americans with Disabilities funds new technologies, expands opportunities to work, and makes our society more welcoming. For the more than 50 million Americans with disabilities, we need to break down barriers to equality.  
2001-24	2001	The budget I propose to you also supports the people who keep our country strong and free, the men and women who serve in the United States military. I'm requesting $5.7 billion in increased military pay and benefits, and health care and housing. Our men and women in uniform give America their best and we owe them our support.  
2001-25	2001	America's veterans honored their commitment to our country through their military service. I will honor our commitment to them with a million-dollar increase to ensure better access to quality care and faster decisions on benefit claims.  
2001-26	2001	My budget will improve our environment by accelerating the cleanup of toxic brownfields. And I propose we make a major investment in conservation by fully funding the Land and Water Conservation Fund. Our national parks have a special place in our country's life. Our parks are places of great natural beauty and history. As good stewards, we must leave them better than we found them. So I propose providing $4.9 billion over five years for the upkeep of these national treasures.  
2001-27	2001	And my budget adopts a hopeful new approach to help the poor and the disadvantaged. We must encourage and support the work of charities and faith-based and community groups that offer help and love one person at a time. These groups are working in every neighborhood in America to fight homelessness and addiction and domestic violence; to provide a hot meal or a mentor or a safe haven for our children. Government should welcome these groups to apply for funds, not discriminate against them.  
2001-28	2001	Government cannot be replaced by charities or volunteers. Government should not fund religious activities. But our nation should support the good works of these good people who are helping their neighbors in need. So I propose allowing all taxpayers, whether they itemize or not, to deduct their charitable contributions. Estimates show this could encourage as much as $14 billion a year in new charitable giving, money that will save and change lives.  
2001-29	2001	Our budget provides more than $700 million over the next 10 years for a federal compassion capital fund, with a focused and noble mission, to provide a mentor to the more than 100 million children with a parent in prison, and to support other local efforts to fight illiteracy, teen pregnancy, drug addiction and other difficult problems.  
2001-30	2001	With us tonight is the Mayor of Philadelphia. Please help me welcome Mayor John Street. Mayor Street has encouraged faith-based and community organizations to make a significant difference in Philadelphia. He's invited me to his city this summer to see compassionate action. I'm personally aware of just how effective the Mayor is. Mayor Street's a Democrat. Let the record show, I lost his city, big time. But some things are bigger than politics. So I look forward to coming to your city, to see your faith-based programs in action.  
2001-31	2001	As government promotes compassion, it also must promote justice. Too many of our citizens have cause to doubt our nation's justice, when the law points a finger of suspicion at groups, instead of individuals. All our citizens are created equal, and must be treated equally.  
2001-32	2001	Earlier today, I asked John Ashcroft, the Attorney General, to develop specific recommendations to end racial profiling. It's wrong and we will end it in America. In so doing, we will not hinder the work of our nation's brave police officers. They protect us every day -- often at great risk. But by stopping the abuses of a few, we will add to the public confidence our police officers earn and deserve.  
2001-33	2001	My budget has funded a responsible increase in our ongoing operations. It has funded our nation's important priorities. It has protected Social Security and Medicare. And our surpluses are big enough that there is still money left over.  
2001-34	2001	Many of you have talked about the need to pay down our national debt. I listened, and I agree. We owe it to our children and grandchildren to act now, and I hope you will join me to pay down $2 trillion in debt during the next 10 years. At the end of those 10 years, we will have paid down all the debt that is available to retire. That is more debt, repaid more quickly than has ever been repaid by any nation at any time in history.  
2001-35	2001	We should also prepare for the unexpected, for the uncertainties of the future. We should approach our nation's budget as any prudent family would, with a contingency fund for emergencies or additional spending needs. For example, after a strategic review, we may need to increase defense spending. We may need to increase spending for our farmers or additional money to reform Medicare. And so, my budget sets aside almost a trillion dollars over 10 years for additional needs. That is one trillion additional reasons you can feel comfortable supporting this budget.  
2001-36	2001	We have increased our budget at a responsible 4 percent. We have funded our priorities. We paid down all the available debt. We have prepared for contingencies. And we still have money left over.  
2001-37	2001	Yogi Berra once said, "When you come to a fork in the road, take it." Now, we come to a fork in the road; we have two choices. Even though we have already met our needs, we could spend the money on more and bigger government. That's the road our nation has traveled in recent years.  
2001-38	2001	Last year, government spending shot up 8 percent. That's far more than our economy grew, far more than personal income grew, and far more than the rate of inflation. If you continue on that road, you will spend the surplus and have to dip into Social Security to pay other bills. Unrestrained government spending is a dangerous road to deficits, so we must take a different path. The other choice is to let the American people spend their own money to meet their own needs.  
2001-39	2001	I hope you will join me in standing firmly on the side of the people. You see, the growing surplus exists because taxes are too high and government is charging more than it needs. The people of America have been overcharged and, on their behalf, I am here asking for a refund.  
2001-40	2001	Some say my tax plan is too big. Others say it's too small. I respectfully disagree. This plan is just right. I didn't throw darts at the board to come up with a number for tax relief. I didn't take a poll or develop an arbitrary formula that might sound good. I looked at problems in the Tax Code and calculated the cost to fix them.  
2001-41	2001	A tax rate of 15 percent is too high for those who earn low wages, so we must lower the rate to 10 percent. No one should pay more than a third of the money they earn in federal income taxes, so we lowered the top rate to 33 percent.  
2001-42	2001	This reform will be welcome relief for America's small businesses, which often pay taxes at the highest rate. And help for small business means jobs for Americans. We simplified the Tax Code by reducing the number of tax rates from the current five rates to four lower ones, 10 percent, 15, 25 and 33 percent. In my plan, no one is targeted in or targeted out. Everyone who pays income taxes will get relief.  
2001-43	2001	Our government should not tax, and thereby discourage marriage, so we reduced the marriage penalty. I want to help families rear and support their children, so we doubled the child credit to $1,000 per child. It's not fair to tax the same earnings twice -- once when you earn them, and again when you die -- so we must repeal the death tax.  
2001-44	2001	These changes add up to significant help. A typical family with two children will save $1,600 a year on their federal income taxes. Now, $1,600 may not sound like a lot to some, but it means a lot to many families: $1,600 buys gas for two cars for an entire year; it pays tuition for a year at a community college; it pays the average family grocery bill for three months. That's real money.  
2001-45	2001	With us tonight representing many American families are Steven and Josefina Ramos. They are from Pennsylvania. But they could be from any one of your districts. Steven is the network administrator for a school district. Josefina is a Spanish teacher at a charter school. And they have a two-year-old daughter.  
2001-46	2001	Steven and Josefina tell me they pay almost $8,000 a year in federal income taxes. My plan will save them more than $2,000. Let me tell you what Steven says: "Two thousand dollars a year means a lot to my family. If we had this money, it would help us reach our goal of paying off our personal debt in two years' time." After that, Steven and Josefina want to start saving for Lianna's college education.  
2001-47	2001	My attitude is, government should never stand in the way of families achieving their dreams. And as we debate this issue, always remember, the surplus is not the government's money, the surplus is the people's money.  
2001-48	2001	For lower-income families, my tax plan restores basic fairness. Right now, complicated tax rules punish hard work. A waitress supporting two children on $25,000 a year can lose nearly half of every additional dollar she earns above the $25,000. Her overtime, her hardest hours, are taxed at nearly 20 percent. This sends a terrible message: you'll never get ahead. But America's message must be different. We must honor hard work, never punish it. With tax relief, overtime will no longer be over-taxed time for the waitress. People with the smallest incomes will get the highest percentage of reductions. And millions of additional American families will be removed from the income tax rolls entirely.  
2001-49	2001	Tax relief is right and tax relief is urgent. The long economic expansion that began almost 10 years ago is faltering. Lower interest rates will eventually help, but we cannot assume they will do the job all by themselves.  
2001-50	2001	Forty years ago, and then 20 years ago, two Presidents, one Democrat, one Republican, John F. Kennedy and Ronald Reagan, advocated tax cuts to, in President Kennedy's words, get this country moving again. They knew then what we must do now. To create economic growth and opportunity, we must put money back into the hands of the people who buy goods and create jobs.  
2001-51	2001	We must act quickly. The Chairman of the Federal Reserve has testified before Congress that tax cuts often come too late to stimulate economic recovery. So I want to work with you to give our economy an important jump-start by making tax relief retroactive.  
2001-52	2001	We must act now because it is the right thing to do. We must also act now because we have other things to do. We must show courage to confront and resolve tough challenges, to restructure our nation's defenses, to meet our growing need for energy, and to reform Medicare and Social Security.  
2001-53	2001	America has a window of opportunity to extend and secure our present peace by promoting a distinctly American internationalism. We will work with our allies and friends to be a force for good and a champion of freedom. We will work for free markets, free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend. We will promote our values. We will promote the peace. And we need a strong military to keep the peace.  
2001-54	2001	But our military was shaped to confront the challenges of the past. So I've asked the Secretary of Defense to review America's Armed Forces and prepare to transform them to meet emerging threats. My budget makes a down payment on the research and development that will be required. Yet, in our broader transformation effort, we must put strategy first, then spending. Our defense vision will drive our defense budget, not the other way around.  
2001-55	2001	Our nation also needs a clear strategy to confront the threats of the 21st century -- threats that are more widespread and less certain. They range from terrorists who threaten with bombs to tyrants in rogue nations intent upon developing weapons of mass destruction. To protect our own people, our allies and friends, we must develop and we must deploy effective missile defenses.  
2001-56	2001	And as we transform our military, we can discard Cold War relics, and reduce our own nuclear forces to reflect today's needs. A strong America is the world's best hope for peace and freedom.  
2001-57	2001	Yet the cause of freedom rests on more than our ability to defend ourselves and our allies. Freedom is exported every day, as we ship goods and products that improve the lives of millions of people. Free trade brings greater political and personal freedom. Each of the previous five Presidents has had the ability to negotiate far reaching trade agreements. Tonight I ask you to give me the strong hand of presidential trade promotion authority, and to do so quickly.  
2001-58	2001	As we meet tonight, many citizens are struggling with the high cost of energy. We have a serious energy problem that demands a national energy policy. The West is confronting a major energy shortage that has resulted in high prices and uncertainty. I've asked federal agencies to work with California officials to help speed construction of new energy sources, and I have direct Vice President Cheney, Commerce Secretary Evans, Energy Secretary Abraham and other senior members in my administration to develop a national energy policy.  
2001-59	2001	Our energy demand outstrips our supply. We can produce more energy at home while protecting our environment, and we must. We can produce more electricity to meet demand, and we must. We can promote alternative energy sources and conservation, and we must. America must become more energy-independent, and we will.  
2001-60	2001	Perhaps the biggest test of our foresight and courage will be reforming Medicare and Social Security. Medicare's finances are strained and its coverage is outdated. Ninety-nine percent of employer-provided health plans offer some form of prescription drug coverage; Medicare does not. The framework for reform has been developed by Senators Frist and Breaux and Congressman Thomas, and now is the time to act.  
2001-61	2001	Medicare must be modernized, and we must make sure that every senior on Medicare can choose a health care plan that offers prescription drugs.  
2001-62	2001	Seven years from now, the baby boom generation will begin to claim Social Security benefits. Every one in this chamber knows that Social Security is not prepared to fully fund their retirement. And we only have a couple of years to get prepared. Without reform, this country will one day awaken to a stark choice: either a drastic rise in payroll taxes or a radical cut in retirement benefits.  
2001-63	2001	There is a better way. This spring I will form a presidential commission to reform Social Security. The commission will make its recommendations by next fall. Reform should be based on these principles: It must preserve the benefits of all current retirees and those nearing retirement. It must return Social Security to sound financial footing. And it must offer personal savings accounts to younger workers who want them.  
2001-64	2001	Social Security now offers workers a return of less than 2 percent on the money they pay into the system. To save the system, we must increase that by allowing younger workers to make safe, sound investments that yield a higher rate of return. Ownership, access to wealth and independence should not be the privilege of the few. They are the hope of every American, and we must make them the foundation of Social Security.  
2001-65	2001	By confronting the tough challenge of reform, by being responsible with our budget, we can earn the trust of the American people. And we can add to that trust by enacting fair and balanced election and campaign reforms.  
2001-66	2001	The agenda I have set before you tonight is worthy of a great nation. America is a nation at peace, but not a nation at rest. Much has been given to us, and much is expected. Let us agree to bridge old divides. But let us also agree that our goodwill must be dedicated to great goals. Bipartisan is more than minding our matters. It is doing our duty.  
2001-67	2001	No one can speak in this Capitol and not be awed by its history. As so many turning points, debates in these chambers have reflected the collected or divided conscience of our country. And when we walk through Statuary Hall and see those men and women of marble, we're reminded of their courage and achievement.  
2001-68	2001	Yet America's purpose is never found only in statues or history. America's purpose always stands before us. Our generation must show courage in a time of blessing, as our nation has always shown in times of crisis. And our courage, issue by issue, can gather to greatness and serve our country. This is the privilege and responsibility we share. And if we work together, we can prove that public service is noble.  
2001-69	2001	We all came here for a reason. We all have things we want to accomplish and promises to keep. Juntos podemos -- together we can.  
2001-70	2001	We can make Americans proud of their government. Together we can share in the credit of making our country more prosperous and generous and just, and earn from our conscience and from our fellow citizens the highest possible praise: Well done, good and faithful servants.  
2002-1	2002	Thank you very much. Mr. Speaker, Vice President Cheney, members of  Congress, distinguished guests, fellow citizens: As we gather tonight, our  nation is at war, our economy is in recession, and the civilized world  faces unprecedented dangers. Yet the state of our Union has never been  stronger. (Applause.)  
2002-2	2002	We last met in an hour of shock and suffering. In four short months, our  nation has comforted the victims, begun to rebuild New York and the  Pentagon, rallied a great coalition, captured, arrested, and rid the world  of thousands of terrorists, destroyed Afghanistan's terrorist training  camps, saved a people from starvation, and freed a country from brutal  oppression. (Applause.)  
2002-3	2002	The American flag flies again over our embassy in Kabul. Terrorists who  once occupied Afghanistan now occupy cells at Guantanamo Bay. (Applause.)  And terrorist leaders who urged followers to sacrifice their lives are  running for their own. (Applause.)  
2002-4	2002	America and Afghanistan are now allies against terror. We'll be partners in  rebuilding that country. And this evening we welcome the distinguished  interim leader of a liberated Afghanistan: Chairman Hamid Karzai.  (Applause.)  
2002-5	2002	The last time we met in this chamber, the mothers and daughters of  Afghanistan were captives in their own homes, forbidden from working or  going to school. Today women are free, and are part of Afghanistan's new  government. And we welcome the new Minister of Women's Affairs, Doctor Sima  Samar. (Applause.)  
2002-6	2002	Our progress is a tribute to the spirit of the Afghan people, to the  resolve of our coalition, and to the might of the United States military.  (Applause.) When I called our troops into action, I did so with complete  confidence in their courage and skill. And tonight, thanks to them, we are  winning the war on terror. (Applause.) The men and women of our Armed  Forces have delivered a message now clear to every enemy of the United  States: Even 7,000 miles away, across oceans and continents, on  mountaintops and in caves--you will not escape the justice of this  nation. (Applause.)  
2002-7	2002	For many Americans, these four months have brought sorrow, and pain that  will never completely go away. Every day a retired firefighter returns to  Ground Zero, to feel closer to his two sons who died there. At a memorial  in New York, a little boy left his football with a note for his lost  father: Dear Daddy, please take this to heaven. I don't want to play  football until I can play with you again some day.  
2002-8	2002	Last month, at the grave of her husband, Michael, a CIA officer and Marine  who died in Mazur-e-Sharif, Shannon Spann said these words of farewell:  "Semper Fi, my love." Shannon is with us tonight. (Applause.)  
2002-9	2002	Shannon, I assure you and all who have lost a loved one that our cause is  just, and our country will never forget the debt we owe Michael and all who  gave their lives for freedom.  
2002-10	2002	Our cause is just, and it continues. Our discoveries in Afghanistan  confirmed our worst fears, and showed us the true scope of the task ahead.  We have seen the depth of our enemies' hatred in videos, where they laugh  about the loss of innocent life. And the depth of their hatred is equaled  by the madness of the destruction they design. We have found diagrams of  American nuclear power plants and public water facilities, detailed  instructions for making chemical weapons, surveillance maps of American  cities, and thorough descriptions of landmarks in America and throughout  the world.  
2002-11	2002	What we have found in Afghanistan confirms that, far from ending there, our  war against terror is only beginning. Most of the 19 men who hijacked  planes on September the 11th were trained in Afghanistan's camps, and so  were tens of thousands of others. Thousands of dangerous killers, schooled  in the methods of murder, often supported by outlaw regimes, are now spread  throughout the world like ticking time bombs, set to go off without  warning.  
2002-12	2002	Thanks to the work of our law enforcement officials and coalition partners,  hundreds of terrorists have been arrested. Yet, tens of thousands of  trained terrorists are still at large. These enemies view the entire world  as a battlefield, and we must pursue them wherever they are. (Applause.) So  long as training camps operate, so long as nations harbor terrorists,  freedom is at risk. And America and our allies must not, and will not,  allow it. (Applause.)  
2002-13	2002	Our nation will continue to be steadfast and patient and persistent in the  pursuit of two great objectives. First, we will shut down terrorist camps,  disrupt terrorist plans, and bring terrorists to justice. And, second, we  must prevent the terrorists and regimes who seek chemical, biological or  nuclear weapons from threatening the United States and the world.  (Applause.)  
2002-14	2002	Our military has put the terror training camps of Afghanistan out of  business, yet camps still exist in at least a dozen countries. A terrorist  underworld--including groups like Hamas, Hezbollah, Islamic Jihad,  Jaish-i-Mohammed--operates in remote jungles and deserts, and hides in  the centers of large cities.  
2002-15	2002	While the most visible military action is in Afghanistan, America is acting  elsewhere. We now have troops in the Philippines, helping to train that  country's armed forces to go after terrorist cells that have executed an  American, and still hold hostages. Our soldiers, working with the Bosnian  government, seized terrorists who were plotting to bomb our embassy. Our  Navy is patrolling the coast of Africa to block the shipment of weapons and  the establishment of terrorist camps in Somalia.  
2002-16	2002	My hope is that all nations will heed our call, and eliminate the terrorist  parasites who threaten their countries and our own. Many nations are acting  forcefully. Pakistan is now cracking down on terror, and I admire the  strong leadership of President Musharraf. (Applause.)  
2002-17	2002	But some governments will be timid in the face of terror. And make no  mistake about it: If they do not act, America will. (Applause.)  
2002-18	2002	Our second goal is to prevent regimes that sponsor terror from threatening  America or our friends and allies with weapons of mass destruction. Some of  these regimes have been pretty quiet since September the 11th. But we know  their true nature. North Korea is a regime arming with missiles and weapons  of mass destruction, while starving its citizens.  
2002-19	2002	Iran aggressively pursues these weapons and exports terror, while an  unelected few repress the Iranian people's hope for freedom.  
2002-20	2002	Iraq continues to flaunt its hostility toward America and to support  terror. The Iraqi regime has plotted to develop anthrax, and nerve gas, and  nuclear weapons for over a decade. This is a regime that has already used  poison gas to murder thousands of its own citizens--leaving the bodies of  mothers huddled over their dead children. This is a regime that agreed to  international inspections--then kicked out the inspectors. This is a  regime that has something to hide from the civilized world.  
2002-21	2002	States like these, and their terrorist allies, constitute an axis of evil,  arming to threaten the peace of the world. By seeking weapons of mass  destruction, these regimes pose a grave and growing danger. They could  provide these arms to terrorists, giving them the means to match their  hatred. They could attack our allies or attempt to blackmail the United  States. In any of these cases, the price of indifference would be  catastrophic.  
2002-22	2002	We will work closely with our coalition to deny terrorists and their state  sponsors the materials, technology, and expertise to make and deliver  weapons of mass destruction. We will develop and deploy effective missile  defenses to protect America and our allies from sudden attack. (Applause.)  And all nations should know: America will do what is necessary to ensure  our nation's security.  
2002-23	2002	We'll be deliberate, yet time is not on our side. I will not wait on  events, while dangers gather. I will not stand by, as peril draws closer  and closer. The United States of America will not permit the world's most  dangerous regimes to threaten us with the world's most destructive weapons.  (Applause.)  
2002-24	2002	Our war on terror is well begun, but it is only begun. This campaign may  not be finished on our watch--yet it must be and it will be waged on our  watch.  
2002-25	2002	We can't stop short. If we stop now--leaving terror camps intact and  terror states unchecked--our sense of security would be false and  temporary. History has called America and our allies to action, and it is  both our responsibility and our privilege to fight freedom's fight.  (Applause.)  
2002-26	2002	Our first priority must always be the security of our nation, and that will  be reflected in the budget I send to Congress. My budget supports three  great goals for America: We will win this war; we'll protect our homeland;  and we will revive our economy.  
2002-27	2002	September the 11th brought out the best in America, and the best in this  Congress. And I join the American people in applauding your unity and  resolve. (Applause.) Now Americans deserve to have this same spirit  directed toward addressing problems here at home. I'm a proud member of my  party--yet as we act to win the war, protect our people, and create jobs  in America, we must act, first and foremost, not as Republicans, not as  Democrats, but as Americans. (Applause.)  
2002-28	2002	It costs a lot to fight this war. We have spent more than a billion dollars  a month--over $30 million a day--and we must be prepared for future  operations. Afghanistan proved that expensive precision weapons defeat the  enemy and spare innocent lives, and we need more of them. We need to  replace aging aircraft and make our military more agile, to put our troops  anywhere in the world quickly and safely. Our men and women in uniform  deserve the best weapons, the best equipment, the best training--and they  also deserve another pay raise. (Applause.)  
2002-29	2002	My budget includes the largest increase in defense spending in two decades  --because while the price of freedom and security is high, it is never too  high. Whatever it costs to defend our country, we will pay. (Applause.)  
2002-30	2002	The next priority of my budget is to do everything possible to protect our  citizens and strengthen our nation against the ongoing threat of another  attack. Time and distance from the events of September the 11th will not  make us safer unless we act on its lessons. America is no longer protected  by vast oceans. We are protected from attack only by vigorous action  abroad, and increased vigilance at home.  
2002-31	2002	My budget nearly doubles funding for a sustained strategy of homeland  security, focused on four key areas: bioterrorism, emergency response,  airport and border security, and improved intelligence. We will develop  vaccines to fight anthrax and other deadly diseases. We'll increase funding  to help states and communities train and equip our heroic police and  firefighters. (Applause.) We will improve intelligence collection and  sharing, expand patrols at our borders, strengthen the security of air  travel, and use technology to track the arrivals and departures of visitors  to the United States. (Applause.)  
2002-32	2002	Homeland security will make America not only stronger, but, in many ways,  better. Knowledge gained from bioterrorism research will improve public  health. Stronger police and fire departments will mean safer neighborhoods.  Stricter border enforcement will help combat illegal drugs. (Applause.) And  as government works to better secure our homeland, America will continue to  depend on the eyes and ears of alert citizens.  
2002-33	2002	A few days before Christmas, an airline flight attendant spotted a  passenger lighting a match. The crew and passengers quickly subdued the  man, who had been trained by al Qaeda and was armed with explosives. The  people on that plane were alert and, as a result, likely saved nearly 200  lives. And tonight we welcome and thank flight attendants Hermis Moutardier  and Christina Jones. (Applause.)  
2002-34	2002	Once we have funded our national security and our homeland security, the  final great priority of my budget is economic security for the American  people. (Applause.) To achieve these great national objectives--to win  the war, protect the homeland, and revitalize our economy--our budget  will run a deficit that will be small and short-term, so long as Congress  restrains spending and acts in a fiscally responsible manner. (Applause.)  We have clear priorities and we must act at home with the same purpose and  resolve we have shown overseas: We'll prevail in the war, and we will  defeat this recession. (Applause.)  
2002-35	2002	Americans who have lost their jobs need our help and I support extending  unemployment benefits and direct assistance for health care coverage.  (Applause.) Yet, American workers want more than unemployment checks--  they want a steady paycheck. (Applause.) When America works, America  prospers, so my economic security plan can be summed up in one word: jobs.  (Applause.)  
2002-36	2002	Good jobs begin with good schools, and here we've made a fine start.  (Applause.) Republicans and Democrats worked together to achieve historic  education reform so that no child is left behind. I was proud to work with  members of both parties: Chairman John Boehner and Congressman George  Miller. (Applause.) Senator Judd Gregg. (Applause.) And I was so proud of  our work, I even had nice things to say about my friend, Ted Kennedy.  (Laughter and applause.) I know the folks at the Crawford coffee shop  couldn't believe I'd say such a thing--(laughter)--but our work on this  bill shows what is possible if we set aside posturing and focus on results.  (Applause.)  
2002-37	2002	There is more to do. We need to prepare our children to read and succeed in  school with improved Head Start and early childhood development programs.  (Applause.) We must upgrade our teacher colleges and teacher training and  launch a major recruiting drive with a great goal for America: a quality  teacher in every classroom. (Applause.)  
2002-38	2002	Good jobs also depend on reliable and affordable energy. This Congress must  act to encourage conservation, promote technology, build infrastructure,  and it must act to increase energy production at home so America is less  dependent on foreign oil. (Applause.)  
2002-39	2002	Good jobs depend on expanded trade. Selling into new markets creates new  jobs, so I ask Congress to finally approve trade promotion authority.  (Applause.) On these two key issues, trade and energy, the House of  Representatives has acted to create jobs, and I urge the Senate to pass  this legislation. (Applause.)  
2002-40	2002	Good jobs depend on sound tax policy. (Applause.) Last year, some in this  hall thought my tax relief plan was too small; some thought it was too big.  (Applause.) But when the checks arrived in the mail, most Americans thought  tax relief was just about right. (Applause.) Congress listened to the  people and responded by reducing tax rates, doubling the child credit, and  ending the death tax. For the sake of long-term growth and to help  Americans plan for the future, let's make these tax cuts permanent.  (Applause.)  
2002-41	2002	The way out of this recession, the way to create jobs, is to grow the  economy by encouraging investment in factories and equipment, and by  speeding up tax relief so people have more money to spend. For the sake of  American workers, let's pass a stimulus package. (Applause.)  
2002-42	2002	Good jobs must be the aim of welfare reform. As we reauthorize these  important reforms, we must always remember the goal is to reduce dependency  on government and offer every American the dignity of a job. (Applause.)  
2002-43	2002	Americans know economic security can vanish in an instant without health  security. I ask Congress to join me this year to enact a patients' bill of  rights--(applause)--to give uninsured workers credits to help buy  health coverage--(applause)--to approve an historic increase in the  spending for veterans' health--(applause)--and to give seniors a sound  and modern Medicare system that includes coverage for prescription drugs.  (Applause.)  
2002-44	2002	A good job should lead to security in retirement. I ask Congress to enact  new safeguards for 401K and pension plans. (Applause.) Employees who have  worked hard and saved all their lives should not have to risk losing  everything if their company fails. (Applause.) Through stricter accounting  standards and tougher disclosure requirements, corporate America must be  made more accountable to employees and shareholders and held to the highest  standards of conduct. (Applause.)  
2002-45	2002	Retirement security also depends upon keeping the commitments of Social  Security, and we will. We must make Social Security financially stable and  allow personal retirement accounts for younger workers who choose them.  (Applause.)  
2002-46	2002	Members, you and I will work together in the months ahead on other issues:  productive farm policy--(applause)--a cleaner environment--(applause)  --broader home ownership, especially among minorities--(applause)--and  ways to encourage the good work of charities and faith-based groups.  (Applause.) I ask you to join me on these important domestic issues in the  same spirit of cooperation we've applied to our war against terrorism.  (Applause.)  
2002-47	2002	During these last few months, I've been humbled and privileged to see the  true character of this country in a time of testing. Our enemies believed  America was weak and materialistic, that we would splinter in fear and  selfishness. They were as wrong as they are evil. (Applause.)  
2002-48	2002	The American people have responded magnificently, with courage and  compassion, strength and resolve. As I have met the heroes, hugged the  families, and looked into the tired faces of rescuers, I have stood in awe  of the American people.  
2002-49	2002	And I hope you will join me--I hope you will join me in expressing thanks  to one American for the strength and calm and comfort she brings to our  nation in crisis, our First Lady, Laura Bush. (Applause.)  
2002-50	2002	None of us would ever wish the evil that was done on September the 11th.  Yet after America was attacked, it was as if our entire country looked into  a mirror and saw our better selves. We were reminded that we are citizens,  with obligations to each other, to our country, and to history. We began to  think less of the goods we can accumulate, and more about the good we can  do.  
2002-51	2002	For too long our culture has said, "If it feels good, do it." Now America  is embracing a new ethic and a new creed: "Let's roll." (Applause.) In the  sacrifice of soldiers, the fierce brotherhood of firefighters, and the  bravery and generosity of ordinary citizens, we have glimpsed what a new  culture of responsibility could look like. We want to be a nation that  serves goals larger than self. We've been offered a unique opportunity, and  we must not let this moment pass. (Applause.)  
2002-52	2002	My call tonight is for every American to commit at least two years--4,000  hours over the rest of your lifetime--to the service of your neighbors  and your nation. (Applause.) Many are already serving, and I thank you. If  you aren't sure how to help, I've got a good place to start. To sustain and  extend the best that has emerged in America, I invite you to join the new  USA Freedom Corps. The Freedom Corps will focus on three areas of need:  responding in case of crisis at home; rebuilding our communities; and  extending American compassion throughout the world.  
2002-53	2002	One purpose of the USA Freedom Corps will be homeland security. America  needs retired doctors and nurses who can be mobilized in major emergencies;  volunteers to help police and fire departments; transportation and utility  workers well-trained in spotting danger.  
2002-54	2002	Our country also needs citizens working to rebuild our communities. We need  mentors to love children, especially children whose parents are in prison.  And we need more talented teachers in troubled schools. USA Freedom Corps  will expand and improve the good efforts of AmeriCorps and Senior Corps to  recruit more than 200,000 new volunteers.  
2002-55	2002	And America needs citizens to extend the compassion of our country to every  part of the world. So we will renew the promise of the Peace Corps, double  its volunteers over the next five years--(applause)--and ask it to join  a new effort to encourage development and education and opportunity in the  Islamic world. (Applause.)  
2002-56	2002	This time of adversity offers a unique moment of opportunity--a moment we  must seize to change our culture. Through the gathering momentum of  millions of acts of service and decency and kindness, I know we can  overcome evil with greater good. (Applause.) And we have a great  opportunity during this time of war to lead the world toward the values  that will bring lasting peace.  
2002-57	2002	All fathers and mothers, in all societies, want their children to be  educated, and live free from poverty and violence. No people on Earth yearn  to be oppressed, or aspire to servitude, or eagerly await the midnight  knock of the secret police.  
2002-58	2002	If anyone doubts this, let them look to Afghanistan, where the Islamic  "street" greeted the fall of tyranny with song and celebration. Let the  skeptics look to Islam's own rich history, with its centuries of learning,  and tolerance and progress. America will lead by defending liberty and  justice because they are right and true and unchanging for all people  everywhere. (Applause.)  
2002-59	2002	No nation owns these aspirations, and no nation is exempt from them. We  have no intention of imposing our culture. But America will always stand  firm for the non-negotiable demands of human dignity: the rule of law;  limits on the power of the state; respect for women; private property; free  speech; equal justice; and religious tolerance. (Applause.)  
2002-60	2002	America will take the side of brave men and women who advocate these values  around the world, including the Islamic world, because we have a greater  objective than eliminating threats and containing resentment. We seek a  just and peaceful world beyond the war on terror.  
2002-61	2002	In this moment of opportunity, a common danger is erasing old rivalries.  America is working with Russia and China and India, in ways we have never  before, to achieve peace and prosperity. In every region, free markets and  free trade and free societies are proving their power to lift lives.  Together with friends and allies from Europe to Asia, and Africa to Latin  America, we will demonstrate that the forces of terror cannot stop the  momentum of freedom. (Applause.)  
2002-62	2002	The last time I spoke here, I expressed the hope that life would return to  normal. In some ways, it has. In others, it never will. Those of us who  have lived through these challenging times have been changed by them. We've  come to know truths that we will never question: evil is real, and it must  be opposed. (Applause.) Beyond all differences of race or creed, we are one  country, mourning together and facing danger together. Deep in the American  character, there is honor, and it is stronger than cynicism. And many have  discovered again that even in tragedy--especially in tragedy--God is  near. (Applause.)  
2002-63	2002	In a single instant, we realized that this will be a decisive decade in the  history of liberty, that we've been called to a unique role in human  events. Rarely has the world faced a choice more clear or consequential.  
2002-64	2002	Our enemies send other people's children on missions of suicide and murder.  They embrace tyranny and death as a cause and a creed. We stand for a  different choice, made long ago, on the day of our founding. We affirm it  again today. We choose freedom and the dignity of every life. (Applause.)  
2002-65	2002	Steadfast in our purpose, we now press on. We have known freedom's price.  We have shown freedom's power. And in this great conflict, my fellow  Americans, we will see freedom's victory.  
2002-66	2002	Thank you all. May God bless. (Applause.)  
2003-1	2003	Mr. Speaker, Vice President Cheney, members of Congress, distinguished citizens and fellow citizens: Every year, by law and by custom, we meet here to consider the state of the union. This year, we gather in this chamber deeply aware of decisive days that lie ahead.  
2003-2	2003	You and I serve our country in a time of great consequence. During this session of Congress, we have the duty to reform domestic programs vital to our country; we have the opportunity to save millions of lives abroad from a terrible disease. We will work for a prosperity that is broadly shared, and we will answer every danger and every enemy that threatens the American people.  
2003-3	2003	In all these days of promise and days of reckoning, we can be confident. In a whirlwind of change and hope and peril, our faith is sure, our resolve is firm, and our union is strong.  
2003-4	2003	This country has many challenges. We will not deny, we will not ignore, we will not pass along our problems to other Congresses, to other presidents, and other generations. We will confront them with focus and clarity and courage.  
2003-5	2003	During the last two years, we have seen what can be accomplished when we work together. To lift the standards of our public schools, we achieved historic education reform -- which must now be carried out in every school and in every classroom, so that every child in America can read and learn and succeed in life. To protect our country, we reorganized our government and created the Department of Homeland Security, which is mobilizing against the threats of a new era. To bring our economy out of recession, we delivered the largest tax relief in a generation. To insist on integrity in American business we passed tough reforms, and we are holding corporate criminals to account.  
2003-6	2003	Some might call this a good record; I call it a good start. Tonight I ask the House and Senate to join me in the next bold steps to serve our fellow citizens.  
2003-7	2003	Our first goal is clear: We must have an economy that grows fast enough to employ every man and woman who seeks a job. After recession, terrorist attacks, corporate scandals and stock market declines, our economy is recovering -- yet it's not growing fast enough, or strongly enough. With unemployment rising, our nation needs more small businesses to open, more companies to invest and expand, more employers to put up the sign that says, "Help Wanted."  
2003-8	2003	Jobs are created when the economy grows; the economy grows when Americans have more money to spend and invest; and the best and fairest way to make sure Americans have that money is not to tax it away in the first place.  
2003-9	2003	I am proposing that all the income tax reductions set for 2004 and 2006 be made permanent and effective this year. And under my plan, as soon as I sign the bill, this extra money will start showing up in workers' paychecks. Instead of gradually reducing the marriage penalty, we should do it now. Instead of slowly raising the child credit to $1,000, we should send the checks to American families now.  
2003-10	2003	The tax relief is for everyone who pays income taxes -- and it will help our economy immediately: 92 million Americans will keep, this year, an average of almost $1,000 more of their own money. A family of four with an income of $40,000 would see their federal income taxes fall from $1,178 to $45 per year. Our plan will improve the bottom line for more than 23 million small businesses.  
2003-11	2003	You, the Congress, have already passed all these reductions, and promised them for future years. If this tax relief is good for Americans three, or five, or seven years from now, it is even better for Americans today.  
2003-12	2003	We should also strengthen the economy by treating investors equally in our tax laws. It's fair to tax a company's profits. It is not fair to again tax the shareholder on the same profits. To boost investor confidence, and to help the nearly 10 million senior who receive dividend income, I ask you to end the unfair double taxation of dividends.  
2003-13	2003	Lower taxes and greater investment will help this economy expand. More jobs mean more taxpayers, and higher revenues to our government. The best way to address the deficit and move toward a balanced budget is to encourage economic growth, and to show some spending discipline in Washington, D.C.  
2003-14	2003	We must work together to fund only our most important priorities. I will send you a budget that increases discretionary spending by 4 percent next year -- about as much as the average family's income is expected to grow. And that is a good benchmark for us. Federal spending should not rise any faster than the paychecks of American families.  
2003-15	2003	A growing economy and a focus on essential priorities will also be crucial to the future of Social Security. As we continue to work together to keep Social Security sound and reliable, we must offer younger workers a chance to invest in retirement accounts that they will control and they will own.  
2003-16	2003	Our second goal is high quality, affordable health care for all Americans. The American system of medicine is a model of skill and innovation, with a pace of discovery that is adding good years to our lives. Yet for many people, medical care costs too much -- and many have no coverage at all. These problems will not be solved with a nationalized health care system that dictates coverage and rations care.  
2003-17	2003	Instead, we must work toward a system in which all Americans have a good insurance policy, choose their own doctors, and seniors and low-income Americans receive the help they need. Instead of bureaucrats and trial lawyers and HMOs, we must put doctors and nurses and patients back in charge of American medicine.  
2003-18	2003	Health care reform must begin with Medicare; Medicare is the binding commitment of a caring society. We must renew that commitment by giving seniors access to preventive medicine and new drugs that are transforming health care in America.  
2003-19	2003	Seniors happy with the current Medicare system should be able to keep their coverage just the way it is. And just like you -- the members of Congress, and your staffs, and other federal employees -- all seniors should have the choice of a health care plan that provides prescription drugs.  
2003-20	2003	My budget will commit an additional $400 billion over the next decade to reform and strengthen Medicare. Leaders of both political parties have talked for years about strengthening Medicare. I urge the members of this new Congress to act this year.  
2003-21	2003	To improve our health care system, we must address one of the prime causes of higher cost, the constant threat that physicians and hospitals will be unfairly sued. Because of excessive litigation, everybody pays more for health care, and many parts of America are losing fine doctors. No one has ever been healed by a frivolous lawsuit. I urge the Congress to pass medical liability reform.  
2003-22	2003	Our third goal is to promote energy independence for our country, while dramatically improving the environment. I have sent you a comprehensive energy plan to promote energy efficiency and conservation, to develop cleaner technology, and to produce more energy at home. I have sent you Clear Skies legislation that mandates a 70-percent cut in air pollution from power plants over the next 15 years. I have sent you a Healthy Forests Initiative, to help prevent the catastrophic fires that devastate communities, kill wildlife, and burn away millions of acres of treasured forest.  
2003-23	2003	I urge you to pass these measures, for the good of both our environment and our economy. Even more, I ask you to take a crucial step and protect our environment in ways that generations before us could not have imagined.  
2003-24	2003	In this century, the greatest environmental progress will come about not through endless lawsuits or command-and-control regulations, but through technology and innovation. Tonight I'm proposing $1.2 billion in research funding so that America can lead the world in developing clean, hydrogen-powered automobiles.  
2003-25	2003	A single chemical reaction between hydrogen and oxygen generates energy, which can be used to power a car -- producing only water, not exhaust fumes. With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free.  
2003-26	2003	Join me in this important innovation to make our air significantly cleaner, and our country much less dependent on foreign sources of energy.  
2003-27	2003	Our fourth goal is to apply the compassion of America to the deepest problems of America. For so many in our country -- the homeless and the fatherless, the addicted -- the need is great. Yet there's power, wonder-working power, in the goodness and idealism and faith of the American people.  
2003-28	2003	Americans are doing the work of compassion every day -- visiting prisoners, providing shelter for battered women, bringing companionship to lonely seniors. These good works deserve our praise; they deserve our personal support; and when appropriate, they deserve the assistance of the federal government.  
2003-29	2003	I urge you to pass both my faith-based initiative and the Citizen Service Act, to encourage acts of compassion that can transform America, one heart and one soul at a time.  
2003-30	2003	Last year, I called on my fellow citizens to participate in the USA Freedom Corps, which is enlisting tens of thousands of new volunteers across America. Tonight I ask Congress and the American people to focus the spirit of service and the resources of government on the needs of some of our most vulnerable citizens -- boys and girls trying to grow up without guidance and attention, and children who have to go through a prison gate to be hugged by their mom or dad.  
2003-31	2003	I propose a $450-million initiative to bring mentors to more than a million disadvantaged junior high students and children of prisoners. Government will support the training and recruiting of mentors; yet it is the men and women of America who will fill the need. One mentor, one person can change a life forever. And I urge you to be that one person.  
2003-32	2003	Another cause of hopelessness is addiction to drugs. Addiction crowds out friendship, ambition, moral conviction, and reduces all the richness of life to a single destructive desire. As a government, we are fighting illegal drugs by cutting off supplies and reducing demand through anti-drug education programs. Yet for those already addicted, the fight against drugs is a fight for their own lives. Too many Americans in search of treatment cannot get it. So tonight I propose a new $600-million program to help an additional 300,000 Americans receive treatment over the next three years.  
2003-33	2003	Our nation is blessed with recovery programs that do amazing work. One of them is found at the Healing Place Church in Baton Rouge, Louisiana. A man in the program said, "God does miracles in people's lives, and you never think it could be you." Tonight, let us bring to all Americans who struggle with drug addiction this message of hope: The miracle of recovery is possible, and it could be you.  
2003-34	2003	By caring for children who need mentors, and for addicted men and women who need treatment, we are building a more welcoming society -- a culture that values every life. And in this work we must not overlook the weakest among us. I ask you to protect infants at the very hour of their birth and end the practice of partial-birth abortion. And because no human life should be started or ended as the object of an experiment, I ask you to set a high standard for humanity, and pass a law against all human cloning.  
2003-35	2003	The qualities of courage and compassion that we strive for in America also determine our conduct abroad. The American flag stands for more than our power and our interests. Our founders dedicated this country to the cause of human dignity, the rights of every person, and the possibilities of every life. This conviction leads us into the world to help the afflicted, and defend the peace, and confound the designs of evil men.  
2003-36	2003	In Afghanistan, we helped liberate an oppressed people. And we will continue helping them secure their country, rebuild their society, and educate all their children -- boys and girls. In the Middle East, we will continue to seek peace between a secure Israel and a democratic Palestine. Across the Earth, America is feeding the hungry -- more than 60 percent of international food aid comes as a gift from the people of the United States. As our nation moves troops and builds alliances to make our world safer, we must also remember our calling as a blessed country is to make this world better.  
2003-37	2003	Today, on the continent of Africa, nearly 30 million people have the AIDS virus -- including 3 million children under the age 15. There are whole countries in Africa where more than one-third of the adult population carries the infection. More than 4 million require immediate drug treatment. Yet across that continent, only 50,000 AIDS victims -- only 50,000 -- are receiving the medicine they need.  
2003-38	2003	Because the AIDS diagnosis is considered a death sentence, many do not seek treatment. Almost all who do are turned away. A doctor in rural South Africa describes his frustration. He says, "We have no medicines. Many hospitals tell people, you've got AIDS, we can't help you. Go home and die." In an age of miraculous medicines, no person should have to hear those words.  
2003-39	2003	AIDS can be prevented. Anti-retroviral drugs can extend life for many years. And the cost of those drugs has dropped from $12,000 a year to under $300 a year -- which places a tremendous possibility within our grasp. Ladies and gentlemen, seldom has history offered a greater opportunity to do so much for so many.  
2003-40	2003	We have confronted, and will continue to confront, HIV/AIDS in our own country. And to meet a severe and urgent crisis abroad, tonight I propose the Emergency Plan for AIDS Relief -- a work of mercy beyond all current international efforts to help the people of Africa. This comprehensive plan will prevent 7 million new AIDS infections, treat at least 2 million people with life-extending drugs, and provide humane care for millions of people suffering from AIDS, and for children orphaned by AIDS.  
2003-41	2003	I ask the Congress to commit $15 billion over the next five years, including nearly $10 billion in new money, to turn the tide against AIDS in the most afflicted nations of Africa and the Caribbean.  
2003-42	2003	This nation can lead the world in sparing innocent people from a plague of nature. And this nation is leading the world in confronting and defeating the man-made evil of international terrorism.  
2003-43	2003	There are days when our fellow citizens do not hear news about the war on terror. There's never a day when I do not learn of another threat, or receive reports of operations in progress, or give an order in this global war against a scattered network of killers. The war goes on, and we are winning.  
2003-44	2003	To date, we've arrested or otherwise dealt with many key commanders of al Qaeda. They include a man who directed logistics and funding for the September the 11th attacks; the chief of al Qaeda operations in the Persian Gulf, who planned the bombings of our embassies in East Africa and the USS Cole; an al Qaeda operations chief from Southeast Asia; a former director of al Qaeda's training camps in Afghanistan; a key al Qaeda operative in Europe; a major al Qaeda leader in Yemen. All told, more than 3,000 suspected terrorists have been arrested in many countries. Many others have met a different fate. Let's put it this way -- they are no longer a problem to the United States and our friends and allies.  
2003-45	2003	We are working closely with other nations to prevent further attacks. America and coalition countries have uncovered and stopped terrorist conspiracies targeting the American embassy in Yemen, the American embassy in Singapore, a Saudi military base, ships in the Straits of Hormuz and the Straits the Gibraltar. We've broken al Qaeda cells in Hamburg, Milan, Madrid, London, Paris, as well as, Buffalo, New York.  
2003-46	2003	We have the terrorists on the run. We're keeping them on the run. One by one, the terrorists are learning the meaning of American justice.  
2003-47	2003	As we fight this war, we will remember where it began -- here, in our own country. This government is taking unprecedented measures to protect our people and defend our homeland. We've intensified security at the borders and ports of entry, posted more than 50,000 newly-trained federal screeners in airports, begun inoculating troops and first responders against smallpox, and are deploying the nation's first early warning network of sensors to detect biological attack. And this year, for the first time, we are beginning to field a defense to protect this nation against ballistic missiles.  
2003-48	2003	I thank the Congress for supporting these measures. I ask you tonight to add to our future security with a major research and production effort to guard our people against bioterrorism, called Project Bioshield. The budget I send you will propose almost $6 billion to quickly make available effective vaccines and treatments against agents like anthrax, botulinum toxin, Ebola, and plague. We must assume that our enemies would use these diseases as weapons, and we must act before the dangers are upon us.  
2003-49	2003	Since September the 11th, our intelligence and law enforcement agencies have worked more closely than ever to track and disrupt the terrorists. The FBI is improving its ability to analyze intelligence, and is transforming itself to meet new threats. Tonight, I am instructing the leaders of the FBI, the CIA, the Homeland Security, and the Department of Defense to develop a Terrorist Threat Integration Center, to merge and analyze all threat information in a single location. Our government must have the very best information possible, and we will use it to make sure the right people are in the right places to protect all our citizens.  
2003-50	2003	Our war against terror is a contest of will in which perseverance is power. In the ruins of two towers, at the western wall of the Pentagon, on a field in Pennsylvania, this nation made a pledge, and we renew that pledge tonight: Whatever the duration of this struggle, and whatever the difficulties, we will not permit the triumph of violence in the affairs of men -- free people will set the course of history.  
2003-51	2003	Today, the gravest danger in the war on terror, the gravest danger facing America and the world, is outlaw regimes that seek and possess nuclear, chemical, and biological weapons. These regimes could use such weapons for blackmail, terror, and mass murder. They could also give or sell those weapons to terrorist allies, who would use them without the least hesitation.  
2003-52	2003	This threat is new; America's duty is familiar. Throughout the 20th century, small groups of men seized control of great nations, built armies and arsenals, and set out to dominate the weak and intimidate the world. In each case, their ambitions of cruelty and murder had no limit. In each case, the ambitions of Hitlerism, militarism, and communism were defeated by the will of free peoples, by the strength of great alliances, and by the might of the United States of America.  
2003-53	2003	Now, in this century, the ideology of power and domination has appeared again, and seeks to gain the ultimate weapons of terror. Once again, this nation and all our friends are all that stand between a world at peace, and a world of chaos and constant alarm. Once again, we are called to defend the safety of our people, and the hopes of all mankind. And we accept this responsibility.  
2003-54	2003	America is making a broad and determined effort to confront these dangers. We have called on the United Nations to fulfill its charter and stand by its demand that Iraq disarm. We're strongly supporting the International Atomic Energy Agency in its mission to track and control nuclear materials around the world. We're working with other governments to secure nuclear materials in the former Soviet Union, and to strengthen global treaties banning the production and shipment of missile technologies and weapons of mass destruction.  
2003-55	2003	In all these efforts, however, America's purpose is more than to follow a process -- it is to achieve a result: the end of terrible threats to the civilized world. All free nations have a stake in preventing sudden and catastrophic attacks. And we're asking them to join us, and many are doing so. Yet the course of this nation does not depend on the decisions of others. Whatever action is required, whenever action is necessary, I will defend the freedom and security of the American people.  
2003-56	2003	Different threats require different strategies. In Iran, we continue to see a government that represses its people, pursues weapons of mass destruction, and supports terror. We also see Iranian citizens risking intimidation and death as they speak out for liberty and human rights and democracy. Iranians, like all people, have a right to choose their own government and determine their own destiny -- and the United States supports their aspirations to live in freedom.  
2003-57	2003	On the Korean Peninsula, an oppressive regime rules a people living in fear and starvation. Throughout the 1990s, the United States relied on a negotiated framework to keep North Korea from gaining nuclear weapons. We now know that that regime was deceiving the world, and developing those weapons all along. And today the North Korean regime is using its nuclear program to incite fear and seek concessions. America and the world will not be blackmailed.  
2003-58	2003	America is working with the countries of the region -- South Korea, Japan, China, and Russia -- to find a peaceful solution, and to show the North Korean government that nuclear weapons will bring only isolation, economic stagnation, and continued hardship. The North Korean regime will find respect in the world and revival for its people only when it turns away from its nuclear ambitions.  
2003-59	2003	Our nation and the world must learn the lessons of the Korean Peninsula and not allow an even greater threat to rise up in Iraq. A brutal dictator, with a history of reckless aggression, with ties to terrorism, with great potential wealth, will not be permitted to dominate a vital region and threaten the United States.  
2003-60	2003	Twelve years ago, Saddam Hussein faced the prospect of being the last casualty in a war he had started and lost. To spare himself, he agreed to disarm of all weapons of mass destruction. For the next 12 years, he systematically violated that agreement. He pursued chemical, biological, and nuclear weapons, even while inspectors were in his country. Nothing to date has restrained him from his pursuit of these weapons -- not economic sanctions, not isolation from the civilized world, not even cruise missile strikes on his military facilities.  
2003-61	2003	Almost three months ago, the United Nations Security Council gave Saddam Hussein his final chance to disarm. He has shown instead utter contempt for the United Nations, and for the opinion of the world. The 108 U.N. inspectors were sent to conduct -- were not sent to conduct a scavenger hunt for hidden materials across a country the size of California. The job of the inspectors is to verify that Iraq's regime is disarming. It is up to Iraq to show exactly where it is hiding its banned weapons, lay those weapons out for the world to see, and destroy them as directed. Nothing like this has happened.  
2003-62	2003	The United Nations concluded in 1999 that Saddam Hussein had biological weapons sufficient to produce over 25,000 liters of anthrax -- enough doses to kill several million people. He hasn't accounted for that material. He's given no evidence that he has destroyed it.  
2003-63	2003	The United Nations concluded that Saddam Hussein had materials sufficient to produce more than 38,000 liters of botulinum toxin -- enough to subject millions of people to death by respiratory failure. He hadn't accounted for that material. He's given no evidence that he has destroyed it.  
2003-64	2003	Our intelligence officials estimate that Saddam Hussein had the materials to produce as much as 500 tons of sarin, mustard and VX nerve agent. In such quantities, these chemical agents could also kill untold thousands. He's not accounted for these materials. He has given no evidence that he has destroyed them.  
2003-65	2003	U.S. intelligence indicates that Saddam Hussein had upwards of 30,000 munitions capable of delivering chemical agents. Inspectors recently turned up 16 of them -- despite Iraq's recent declaration denying their existence. Saddam Hussein has not accounted for the remaining 29,984 of these prohibited munitions. He's given no evidence that he has destroyed them.  
2003-66	2003	From three Iraqi defectors we know that Iraq, in the late 1990s, had several mobile biological weapons labs. These are designed to produce germ warfare agents, and can be moved from place to a place to evade inspectors. Saddam Hussein has not disclosed these facilities. He's given no evidence that he has destroyed them.  
2003-67	2003	The International Atomic Energy Agency confirmed in the 1990s that Saddam Hussein had an advanced nuclear weapons development program, had a design for a nuclear weapon and was working on five different methods of enriching uranium for a bomb. The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa. Our intelligence sources tell us that he has attempted to purchase high-strength aluminum tubes suitable for nuclear weapons production. Saddam Hussein has not credibly explained these activities. He clearly has much to hide.  
2003-68	2003	The dictator of Iraq is not disarming. To the contrary; he is deceiving. From intelligence sources we know, for instance, that thousands of Iraqi security personnel are at work hiding documents and materials from the U.N. inspectors, sanitizing inspection sites and monitoring the inspectors themselves. Iraqi officials accompany the inspectors in order to intimidate witnesses.  
2003-69	2003	Iraq is blocking U-2 surveillance flights requested by the United Nations. Iraqi intelligence officers are posing as the scientists inspectors are supposed to interview. Real scientists have been coached by Iraqi officials on what to say. Intelligence sources indicate that Saddam Hussein has ordered that scientists who cooperate with U.N. inspectors in disarming Iraq will be killed, along with their families.  
2003-70	2003	Year after year, Saddam Hussein has gone to elaborate lengths, spent enormous sums, taken great risks to build and keep weapons of mass destruction. But why? The only possible explanation, the only possible use he could have for those weapons, is to dominate, intimidate, or attack.  
2003-71	2003	With nuclear arms or a full arsenal of chemical and biological weapons, Saddam Hussein could resume his ambitions of conquest in the Middle East and create deadly havoc in that region. And this Congress and the America people must recognize another threat. Evidence from intelligence sources, secret communications, and statements by people now in custody reveal that Saddam Hussein aids and protects terrorists, including members of al Qaeda. Secretly, and without fingerprints, he could provide one of his hidden weapons to terrorists, or help them develop their own.  
2003-72	2003	Before September the 11th, many in the world believed that Saddam Hussein could be contained. But chemical agents, lethal viruses and shadowy terrorist networks are not easily contained. Imagine those 19 hijackers with other weapons and other plans -- this time armed by Saddam Hussein. It would take one vial, one canister, one crate slipped into this country to bring a day of horror like none we have ever known. We will do everything in our power to make sure that that day never comes.  
2003-73	2003	Some have said we must not act until the threat is imminent. Since when have terrorists and tyrants announced their intentions, politely putting us on notice before they strike? If this threat is permitted to fully and suddenly emerge, all actions, all words, and all recriminations would come too late. Trusting in the sanity and restraint of Saddam Hussein is not a strategy, and it is not an option.  
2003-74	2003	The dictator who is assembling the world's most dangerous weapons has already used them on whole villages -- leaving thousands of his own citizens dead, blind, or disfigured. Iraqi refugees tell us how forced confessions are obtained -- by torturing children while their parents are made to watch. International human rights groups have catalogued other methods used in the torture chambers of Iraq: electric shock, burning with hot irons, dripping acid on the skin, mutilation with electric drills, cutting out tongues, and rape. If this is not evil, then evil has no meaning.  
2003-75	2003	And tonight I have a message for the brave and oppressed people of Iraq: Your enemy is not surrounding your country -- your enemy is ruling your country. And the day he and his regime are removed from power will be the day of your liberation.  
2003-76	2003	The world has waited 12 years for Iraq to disarm. America will not accept a serious and mounting threat to our country, and our friends and our allies. The United States will ask the U.N. Security Council to convene on February the 5th to consider the facts of Iraq's ongoing defiance of the world. Secretary of State Powell will present information and intelligence about Iraqi's legal -- Iraq's illegal weapons programs, its attempt to hide those weapons from inspectors, and its links to terrorist groups.  
2003-77	2003	We will consult. But let there be no misunderstanding: If Saddam Hussein does not fully disarm, for the safety of our people and for the peace of the world, we will lead a coalition to disarm him.  
2003-78	2003	Tonight I have a message for the men and women who will keep the peace, members of the American Armed Forces: Many of you are assembling in or near the Middle East, and some crucial hours may lay ahead. In those hours, the success of our cause will depend on you. Your training has prepared you. Your honor will guide you. You believe in America, and America believes in you.  
2003-79	2003	Sending Americans into battle is the most profound decision a President can make. The technologies of war have changed; the risks and suffering of war have not. For the brave Americans who bear the risk, no victory is free from sorrow. This nation fights reluctantly, because we know the cost and we dread the days of mourning that always come.  
2003-80	2003	We seek peace. We strive for peace. And sometimes peace must be defended. A future lived at the mercy of terrible threats is no peace at all. If war is forced upon us, we will fight in a just cause and by just means -- sparing, in every way we can, the innocent. And if war is forced upon us, we will fight with the full force and might of the United States military -- and we will prevail.  
2003-81	2003	And as we and our coalition partners are doing in Afghanistan, we will bring to the Iraqi people food and medicines and supplies -- and freedom.  
2003-82	2003	Many challenges, abroad and at home, have arrived in a single season. In two years, America has gone from a sense of invulnerability to an awareness of peril; from bitter division in small matters to calm unity in great causes. And we go forward with confidence, because this call of history has come to the right country.  
2003-83	2003	Americans are a resolute people who have risen to every test of our time. Adversity has revealed the character of our country, to the world and to ourselves. America is a strong nation, and honorable in the use of our strength. We exercise power without conquest, and we sacrifice for the liberty of strangers.  
2003-84	2003	Americans are a free people, who know that freedom is the right of every person and the future of every nation. The liberty we prize is not America's gift to the world, it is God's gift to humanity.  
2003-85	2003	We Americans have faith in ourselves, but not in ourselves alone. We do not know -- we do not claim to know all the ways of Providence, yet we can trust in them, placing our confidence in the loving God behind all of life, and all of history.  
2004-1	2004	Mr. Speaker, Vice President Cheney, Members of Congress, distinguished guests, and fellow citizens:  
2004-2	2004	America this evening is a Nation called to great responsibilities. And we are rising to meet them.  
2004-3	2004	As we gather tonight, hundreds of thousands of American servicemen and women are deployed across the world in the war on terror. By bringing hope to the oppressed, and delivering justice to the violent, they are making America more secure.  
2004-4	2004	Each day, law enforcement personnel and intelligence officers are tracking terrorist threats; analysts are examining airline passenger lists; the men and women of our new Homeland Security Department are patrolling our coasts and borders. And their vigilance is protecting America.  
2004-5	2004	Americans are proving once again to be the hardest working people in the world. The American economy is growing stronger. The tax relief you passed is working.  
2004-6	2004	Tonight, Members of Congress can take pride in great works of compassion and reform that skeptics had thought impossible. You are raising the standards of our public schools; and you are giving our senior citizens prescription drug coverage under Medicare.  
2004-7	2004	We have faced serious challenges together - and now we face a choice. We can go forward with confidence and resolve - or we can turn back to the dangerous illusion that terrorists are not plotting and outlaw regimes are no threat to us. We can press on with economic growth, and reforms in education and Medicare - or we can turn back to the old policies and old divisions.  
2004-8	2004	We have not come all this way - through tragedy, and trial, and war - only to falter and leave our work unfinished. Americans are rising to the tasks of history, and they expect the same of us. In their efforts, their enterprise, and their character, the American people are showing that the state of our Union is confident and strong.  
2004-9	2004	Our greatest responsibility is the active defense of the American people. Twenty-eight months have passed since September 11th, 2001 - over two years without an attack on American soil - and it is tempting to believe that the danger is behind us. That hope is understandable, comforting - and false. The killing has continued in Bali, Jakarta, Casablanca, Riyadh, Mombassa, Jerusalem, Istanbul, and Baghdad. The terrorists continue to plot against America and the civilized world. And by our will and courage, this danger will be defeated.  
2004-10	2004	Inside the United States, where the war began, we must continue to give homeland security and law enforcement personnel every tool they need to defend us. And one of those essential tools is the PATRIOT Act, which allows Federal law enforcement to better share information, to track terrorists, to disrupt their cells, and to seize their assets. For years, we have used similar provisions to catch embezzlers and drug traffickers. If these methods are good for hunting criminals, they are even more important for hunting terrorists. Key provisions of the PATRIOT Act are set to expire next year. The terrorist threat will not expire on that schedule. Our law enforcement needs this vital legislation to protect our citizens - you need to renew the PATRIOT Act.  
2004-11	2004	America is on the offensive against the terrorists who started this war. Last March, Khalid Shaikh Mohammed, a mastermind of September 11th, awoke to find himself in the custody of U.S. and Pakistani authorities. Last August 11th brought the capture of the terrorist Hambali, who was a key player in the attack in Indonesia that killed over 200 people. We are tracking al-Qaida around the world - and nearly two-thirds of their known leaders have now been captured or killed. Thousands of very skilled and determined military personnel are on a manhunt, going after the remaining killers who hide in cities and caves - and, one by one, we will bring the terrorists to justice.  
2004-12	2004	As part of the offensive against terror, we are also confronting the regimes that harbor and support terrorists, and could supply them with nuclear, chemical, or biological weapons. The United States and our allies are determined: We refuse to live in the shadow of this ultimate danger.  
2004-13	2004	The first to see our determination were the Taliban, who made Afghanistan the primary training base of al-Qaida killers. As of this month, that country has a new constitution, guaranteeing free elections and full participation by women. Businesses are opening, health care centers are being established, and the boys and girls of Afghanistan are back in school. With help from the new Afghan Army, our coalition is leading aggressive raids against surviving members of the Taliban and al-Qaida. The men and women of Afghanistan are building a nation that is free, and proud, and fighting terror - and America is honored to be their friend.  
2004-14	2004	Since we last met in this chamber, combat forces of the United States, Great Britain, Australia, Poland, and other countries enforced the demands of the United Nations, ended the rule of Saddam Hussein - and the people of Iraq are free. Having broken the Baathist regime, we face a remnant of violent Saddam supporters. Men who ran away from our troops in battle are now dispersed and attack from the shadows.  
2004-15	2004	These killers, joined by foreign terrorists, are a serious, continuing danger. Yet we are making progress against them. The once all-powerful ruler of Iraq was found in a hole, and now sits in a prison cell. Of the top 55 officials of the former regime, we have captured or killed 45. Our forces are on the offensive, leading over 1,600 patrols a day, and conducting an average of 180 raids every week. We are dealing with these thugs in Iraq, just as surely as we dealt with Saddam Hussein's evil regime.  
2004-16	2004	The work of building a new Iraq is hard, and it is right. And America has always been willing to do what it takes for what is right. Last January, Iraq's only law was the whim of one brutal man. Today our coalition is working with the Iraqi Governing Council to draft a basic law, with a bill of rights. We are working with Iraqis and the United Nations to prepare for a transition to full Iraqi sovereignty by the end of June. As democracy takes hold in Iraq, the enemies of freedom will do all in their power to spread violence and fear. They are trying to shake the will of our country and our friends - but the United States of America will never be intimidated by thugs and assassins. The killers will fail, and the Iraqi people will live in freedom.  
2004-17	2004	Month by month, Iraqis are assuming more responsibility for their own security and their own future. And tonight we are honored to welcome one of Iraq's most respected leaders: the current President of the Iraqi Governing Council, Adnan Pachachi. Sir, America stands with you and the Iraqi people as you build a free and peaceful nation.  
2004-18	2004	Because of American leadership and resolve, the world is changing for the better. Last month, the leader of Libya voluntarily pledged to disclose and dismantle all of his regime's weapons of mass destruction programs, including a uranium enrichment project for nuclear weapons. Colonel Qadhafi correctly judged that his country would be better off, and far more secure, without weapons of mass murder. Nine months of intense negotiations involving the United States and Great Britain succeeded with Libya, while 12 years of diplomacy with Iraq did not. And one reason is clear: For diplomacy to be effective, words must be credible - and no one can now doubt the word of America.  
2004-19	2004	Different threats require different strategies. Along with nations in the region, we are insisting that North Korea eliminate its nuclear program. America and the international community are demanding that Iran meet its commitments and not develop nuclear weapons. America is committed to keeping the world's most dangerous weapons out of the hands of the world's most dangerous regimes.  
2004-20	2004	When I came to this rostrum on September 20th, 2001, I brought the police shield of a fallen officer, my reminder of lives that ended, and a task that does not end. I gave to you and to all Americans my complete commitment to securing our country and defeating our enemies. And this pledge, given by one, has been kept by many. You in the Congress have provided the resources for our defense, and cast the difficult votes of war and peace. Our closest allies have been unwavering. America's intelligence personnel and diplomats have been skilled and tireless.  
2004-21	2004	d the men and women of the American military - they have taken the hardest duty. We have seen their skill and courage in armored charges, and midnight raids, and lonely hours on faithful watch. We have seen the joy when they return, and felt the sorrow when one is lost. I have had the honor of meeting our servicemen and women at many posts, from the deck of a carrier in the Pacific, to a mess hall in Baghdad. Many of our troops are listening tonight. And I want you and your families to know: America is proud of you. And my Administration, and this Congress, will give you the resources you need to fight and win the war on terror.  
2004-22	2004	I know that some people question if America is really in a war at all. They view terrorism more as a crime - a problem to be solved mainly with law enforcement and indictments. After the World Trade Center was first attacked in 1993, some of the guilty were indicted, tried, convicted, and sent to prison. But the matter was not settled. The terrorists were still training and plotting in other nations, and drawing up more ambitious plans. After the chaos and carnage of September 11th, it is not enough to serve our enemies with legal papers. The terrorists and their supporters declared war on the United States - and war is what they got.  
2004-23	2004	Some in this chamber, and in our country, did not support the liberation of Iraq. Objections to war often come from principled motives. But let us be candid about the consequences of leaving Saddam Hussein in power. We are seeking all the facts - already the Kay Report identified dozens of weapons of mass destruction-related program activities and significant amounts of equipment that Iraq concealed from the United Nations. Had we failed to act, the dictator's weapons of mass destruction programs would continue to this day. Had we failed to act, Security Council resolutions on Iraq would have been revealed as empty threats, weakening the United Nations and encouraging defiance by dictators around the world. Iraq's torture chambers would still be filled with victims - terrified and innocent. The killing fields of Iraq - where hundreds of thousands of men, women, and children vanished into the sands - would still be known only to the killers. For all who love freedom and peace, the world without Saddam Hussein's regime is a better and safer place.  
2004-24	2004	Some critics have said our duties in Iraq must be internationalized. This particular criticism is hard to explain to our partners in Britain, Australia, Japan, South Korea, the Philippines, Thailand, Italy, Spain, Poland, Denmark, Hungary, Bulgaria, Ukraine, Romania, the Netherlands, Norway, El Salvador, and the 17 other countries that have committed troops to Iraq. As we debate at home, we must never ignore the vital contributions of our international partners, or dismiss their sacrifices. From the beginning, America has sought international support for operations in Afghanistan and Iraq, and we have gained much support. There is a difference, however, between leading a coalition of many nations, and submitting to the objections of a few. America will never seek a permission slip to defend the security of our people.  
2004-25	2004	We also hear doubts that democracy is a realistic goal for the greater Middle East, where freedom is rare. Yet it is mistaken, and condescending, to assume that whole cultures and great religions are incompatible with liberty and self-government. I believe that God has planted in every heart the desire to live in freedom. And even when that desire is crushed by tyranny for decades, it will rise again.  
2004-26	2004	As long as the Middle East remains a place of tyranny, despair, and anger, it will continue to produce men and movements that threaten the safety of America and our friends. So America is pursuing a forward strategy of freedom in the greater Middle East. We will challenge the enemies of reform, confront the allies of terror, and expect a higher standard from our friends. To cut through the barriers of hateful propaganda, the Voice of America and other broadcast services are expanding their programming in Arabic and Persian - and soon, a new television service will begin providing reliable news and information across the region. I will send you a proposal to double the budget of the National Endowment for Democracy, and to focus its new work on the development of free elections, free markets, free press, and free labor unions in the Middle East. And above all, we will finish the historic work of democracy in Afghanistan and Iraq, so those nations can light the way for others, and help transform a troubled part of the world.  
2004-27	2004	America is a Nation with a mission - and that mission comes from our most basic beliefs. We have no desire to dominate, no ambitions of empire. Our aim is a democratic peace - a peace founded upon the dignity and rights of every man and woman. America acts in this cause with friends and allies at our side, yet we understand our special calling: This great Republic will lead the cause of freedom.  
2004-28	2004	In these last three years, adversity has also revealed the fundamental strengths of the American economy. We have come through recession, and terrorist attack, and corporate scandals, and the uncertainties of war. And because you acted to stimulate our economy with tax relief, this economy is strong, and growing stronger.  
2004-29	2004	You have doubled the child tax credit from 500 to a thousand dollars, reduced the marriage penalty, begun to phase out the death tax, reduced taxes on capital gains and stock dividends, cut taxes on small businesses, and you have lowered taxes for every American who pays income taxes.  
2004-30	2004	Americans took those dollars and put them to work, driving this economy forward. The pace of economic growth in the third quarter of 2003 was the fastest in nearly 20 years. New home construction: the highest in almost 20 years. Home ownership rates: the highest ever. Manufacturing activity is increasing. Inflation is low. Interest rates are low. Exports are growing. Productivity is high. And jobs are on the rise.  
2004-31	2004	These numbers confirm that the American people are using their money far better than government would have - and you were right to return it.  
2004-32	2004	America's growing economy is also a changing economy. As technology transforms the way almost every job is done, America becomes more productive, and workers need new skills. Much of our job growth will be found in high-skilled fields like health care and biotechnology. So we must respond by helping more Americans gain the skills to find good jobs in our new economy.  
2004-33	2004	All skills begin with the basics of reading and math, which are supposed to be learned in the early grades of our schools. Yet for too long, for too many children, those skills were never mastered. By passing the No Child Left Behind Act, you have made the expectation of literacy the law of our country. We are providing more funding for our schools - a 36 percent increase since 2001. We are requiring higher standards. We are regularly testing every child on the fundamentals. We are reporting results to parents, and making sure they have better options when schools are not performing. We are making progress toward excellence for every child.  
2004-34	2004	But the status quo always has defenders. Some want to undermine the No Child Left Behind Act by weakening standards and accountability. Yet the results we require are really a matter of common sense: We expect third graders to read and do math at third grade level - and that is not asking too much. Testing is the only way to identify and help students who are falling behind.  
2004-35	2004	This Nation will not go back to the days of simply shuffling children along from grade to grade without them learning the basics. I refuse to give up on any child - and the No Child Left Behind Act is opening the door of opportunity to all of America's children.  
2004-36	2004	At the same time, we must ensure that older students and adults can gain the skills they need to find work now. Many of the fastest-growing occupations require strong math and science preparation, and training beyond the high school level. So tonight I propose a series of measures called Jobs for the 21st Century. This program will provide extra help to middle- and high school students who fall behind in reading and math, expand Advanced Placement programs in low-income schools, and invite math and science professionals from the private sector to teach part-time in our high schools. I propose larger Pell Grants for students who prepare for college with demanding courses in high school. I propose increasing our support for America's fine community colleges, so they can train workers for the industries that are creating the most new jobs. By all these actions, we will help more and more Americans to join in the growing prosperity of our country.  
2004-37	2004	Job training is important, and so is job creation. We must continue to pursue an aggressive, pro-growth economic agenda.  
2004-38	2004	Congress has some unfinished business on the issue of taxes. The tax reductions you passed are set to expire. Unless you act, the unfair tax on marriage will go back up. Unless you act, millions of families will be charged 300 dollars more in Federal taxes for every child. Unless you act, small businesses will pay higher taxes. Unless you act, the death tax will eventually come back to life. Unless you act, Americans face a tax increase. What the Congress has given, the Congress should not take away: For the sake of job growth, the tax cuts you passed should be permanent.  
2004-39	2004	Our agenda for jobs and growth must help small business owners and employees with relief from needless Federal regulation, and protect them from junk and frivolous lawsuits. Consumers and businesses need reliable supplies of energy to make our economy run - so I urge you to pass legislation to modernize our electricity system, promote conservation, and make America less dependent on foreign sources of energy. My Administration is promoting free and fair trade, to open up new markets for America's entrepreneurs, and manufacturers, and farmers, and to create jobs for America's workers. Younger workers should have the opportunity to build a nest egg by saving part of their Social Security taxes in a personal retirement account. We should make the Social Security system a source of ownership for the American people.  
2004-40	2004	And we should limit the burden of government on this economy by acting as good stewards of taxpayer dollars. In two weeks, I will send you a budget that funds the war, protects the homeland, and meets important domestic needs, while limiting the growth in discretionary spending to less than four percent. This will require that Congress focus on priorities, cut wasteful spending, and be wise with the people's money. By doing so, we can cut the deficit in half over the next five years.  
2004-41	2004	Tonight I also ask you to reform our immigration laws, so they reflect our values and benefit our economy. I propose a new temporary worker program to match willing foreign workers with willing employers, when no Americans can be found to fill the job. This reform will be good for our economy - because employers will find needed workers in an honest and orderly system. A temporary worker program will help protect our homeland - allowing border patrol and law enforcement to focus on true threats to our national security. I oppose amnesty, because it would encourage further illegal immigration, and unfairly reward those who break our laws. My temporary worker program will preserve the citizenship path for those who respect the law, while bringing millions of hardworking men and women out from the shadows of American life.  
2004-42	2004	Our Nation's health care system, like our economy, is also in a time of change. Amazing medical technologies are improving and saving lives. This dramatic progress has brought its own challenge, in the rising costs of medical care and health insurance. Members of Congress, we must work together to help control those costs and extend the benefits of modern medicine throughout our country.  
2004-43	2004	Meeting these goals requires bipartisan effort - and two months ago, you showed the way. By strengthening Medicare and adding a prescription drug benefit, you kept a basic commitment to our seniors: You are giving them the modern medicine they deserve.  
2004-44	2004	Starting this year, under the law you passed, seniors can choose to receive a drug discount card, saving them 10 to 25 percent off the retail price of most prescription drugs - and millions of low-income seniors can get an additional 600 dollars to buy medicine. Beginning next year, seniors will have new coverage for preventive screenings against diabetes and heart disease, and seniors just entering Medicare can receive wellness exams.  
2004-45	2004	In January of 2006, seniors can get prescription drug coverage under Medicare. For a monthly premium of about 35 dollars, most seniors who do not have that coverage today can expect to see their drug bills cut roughly in half. Under this reform, senior citizens will be able to keep their Medicare just as it is, or they can choose a Medicare plan that fits them best - just as you, as Members of Congress, can choose an insurance plan that meets your needs. And starting this year, millions of Americans will be able to save money tax-free for their medical expenses, in a health savings account.  
2004-46	2004	I signed this measure proudly, and any attempt to limit the choices of our seniors, or to take away their prescription drug coverage under Medicare, will meet my veto.  
2004-47	2004	On the critical issue of health care, our goal is to ensure that Americans can choose and afford private health care coverage that best fits their individual needs. To make insurance more affordable, Congress must act to address rapidly rising health care costs. Small businesses should be able to band together and negotiate for lower insurance rates, so they can cover more workers with health insurance - I urge you to pass Association Health Plans. I ask you to give lower-income Americans a refundable tax credit that would allow millions to buy their own basic health insurance. By computerizing health records, we can avoid dangerous medical mistakes, reduce costs, and improve care. To protect the doctor-patient relationship, and keep good doctors doing good work, we must eliminate wasteful and frivolous medical lawsuits. And tonight I propose that individuals who buy catastrophic health care coverage, as part of our new health savings accounts, be allowed to deduct 100 percent of the premiums from their taxes.  
2004-48	2004	A government-run health care system is the wrong prescription. By keeping costs under control, expanding access, and helping more Americans afford coverage, we will preserve the system of private medicine that makes America's health care the best in the world.  
2004-49	2004	We are living in a time of great change - in our world, in our economy, and in science and medicine. Yet some things endure - courage and compassion, reverence and integrity, respect for differences of faith and race. The values we try to live by never change. And they are instilled in us by fundamental institutions, such as families, and schools, and religious congregations. These institutions - the unseen pillars of civilization - must remain strong in America, and we will defend them.  
2004-50	2004	We must stand with our families to help them raise healthy, responsible children. And when it comes to helping children make right choices, there is work for all of us to do.  
2004-51	2004	One of the worst decisions our children can make is to gamble their lives and futures on drugs. Our government is helping parents confront this problem, with aggressive education, treatment, and law enforcement. Drug use in high school has declined by 11 percent over the past two years. Four hundred thousand fewer young people are using illegal drugs than in the year 2001. In my budget, I have proposed new funding to continue our aggressive, community-based strategy to reduce demand for illegal drugs. Drug testing in our schools has proven to be an effective part of this effort. So tonight I propose an additional 23 million dollars for schools that want to use drug testing as a tool to save children's lives. The aim here is not to punish children, but to send them this message: We love you, and we don't want to lose you.  
2004-52	2004	To help children make right choices, they need good examples. Athletics play such an important role in our society, but, unfortunately, some in professional sports are not setting much of an example. The use of performance-enhancing drugs like steroids in baseball, football, and other sports is dangerous, and it sends the wrong message - that there are shortcuts to accomplishment, and that performance is more important than character. So tonight I call on team owners, union representatives, coaches, and players to take the lead, to send the right signal, to get tough, and to get rid of steroids now.  
2004-53	2004	To encourage right choices, we must be willing to confront the dangers young people face - even when they are difficult to talk about. Each year, about three million teenagers contract sexually transmitted diseases that can harm them, or kill them, or prevent them from ever becoming parents. In my budget, I propose a grassroots campaign to help inform families about these medical risks. We will double Federal funding for abstinence programs, so schools can teach this fact of life: Abstinence for young people is the only certain way to avoid sexually transmitted diseases. Decisions children make now can affect their health and character for the rest of their lives. All of us - parents, schools, government - must work together to counter the negative influence of the culture, and to send the right messages to our children.  
2004-54	2004	A strong America must also value the institution of marriage. I believe we should respect individuals as we take a principled stand for one of the most fundamental, enduring institutions of our civilization. Congress has already taken a stand on this issue by passing the Defense of Marriage Act, signed in 1996 by President Clinton. That statute protects marriage under Federal law as the union of a man and a woman, and declares that one state may not redefine marriage for other states. Activist judges, however, have begun redefining marriage by court order, without regard for the will of the people and their elected representatives. On an issue of such great consequence, the people's voice must be heard. If judges insist on forcing their arbitrary will upon the people, the only alternative left to the people would be the constitutional process. Our Nation must defend the sanctity of marriage.  
2004-55	2004	The outcome of this debate is important - and so is the way we conduct it. The same moral tradition that defines marriage also teaches that each individual has dignity and value in God's sight.  
2004-56	2004	It is also important to strengthen our communities by unleashing the compassion of America's religious institutions. Religious charities of every creed are doing some of the most vital work in our country - mentoring children, feeding the hungry, taking the hand of the lonely. Yet government has often denied social service grants and contracts to these groups, just because they have a cross or Star of David or crescent on the wall. By Executive Order, I have opened billions of dollars in grant money to competition that includes faith-based charities. Tonight I ask you to codify this into law, so people of faith can know that the law will never discriminate against them again.  
2004-57	2004	In the past, we have worked together to bring mentors to the children of prisoners, and provide treatment for the addicted, and help for the homeless. Tonight I ask you to consider another group of Americans in need of help. This year, some 600,000 inmates will be released from prison back into society. We know from long experience that if they can't find work, or a home, or help, they are much more likely to commit more crimes and return to prison. So tonight, I propose a four-year, 300 million dollar Prisoner Re-Entry Initiative to expand job training and placement services, to provide transitional housing, and to help newly released prisoners get mentoring, including from faith-based groups. America is the land of the second chance - and when the gates of the prison open, the path ahead should lead to a better life.  
2004-58	2004	For all Americans, the last three years have brought tests we did not ask for, and achievements shared by all. By our actions, we have shown what kind of Nation we are. In grief, we found the grace to go on. In challenge, we rediscovered the courage and daring of a free people. In victory, we have shown the noble aims and good heart of America. And having come this far, we sense that we live in a time set apart.  
2004-59	2004	I have been a witness to the character of the American people, who have shown calm in times of danger, compassion for one another, and toughness for the long haul. All of us have been partners in a great enterprise. And even some of the youngest understand that we are living in historic times. Last month a girl in Lincoln, Rhode Island, sent me a letter. It began, "Dear George W. Bush." "If there is anything you know, I Ashley Pearson age 10 can do to help anyone, please send me a letter and tell me what I can do to save our country." She added this P.S.: "If you can send a letter to the troops ... please put, 'Ashley Pearson believes in you.'" Tonight, Ashley, your message to our troops has just been conveyed. And yes, you have some duties yourself. Study hard in school, listen to your mom and dad, help someone in need, and when you and your friends see a man or woman in uniform, say "thank you." And while you do your part, all of us here in this great chamber will do our best to keep you and the rest of America safe and free.  
2004-60	2004	My fellow citizens, we now move forward, with confidence and faith. Our Nation is strong and steadfast. The cause we serve is right, because it is the cause of all mankind. The momentum of freedom in our world is unmistakable - and it is not carried forward by our power alone. We can trust in that greater power Who guides the unfolding of the years. And in all that is to come, we can know that His purposes are just and true.  
2004-61	2004	May God bless the United States of America. Thank you.  
2005-1	2005	Mr. Speaker, Vice President Cheney, members of Congress, fellow citizens:  
2005-2	2005	As a new Congress gathers, all of us in the elected branches of government share a great privilege: We've been placed in office by the votes of the people we serve. And tonight that is a privilege we share with newly-elected leaders of Afghanistan, the Palestinian Territories, Ukraine, and a free and sovereign Iraq.  
2005-3	2005	Two weeks ago, I stood on the steps of this Capitol and renewed the commitment of our nation to the guiding ideal of liberty for all. This evening I will set forth policies to advance that ideal at home and around the world.  
2005-4	2005	Tonight, with a healthy, growing economy, with more Americans going back to work, with our nation an active force for good in the world -- the state of our union is confident and strong.  
2005-5	2005	Our generation has been blessed -- by the expansion of opportunity, by advances in medicine, by the security purchased by our parents' sacrifice. Now, as we see a little gray in the mirror -- or a lot of gray -- and we watch our children moving into adulthood, we ask the question: What will be the state of their union? Members of Congress, the choices we make together will answer that question. Over the next several months, on issue after issue, let us do what Americans have always done, and build a better world for our children and our grandchildren.  
2005-6	2005	First, we must be good stewards of this economy, and renew the great institutions on which millions of our fellow citizens rely. America's economy is the fastest growing of any major industrialized nation. In the past four years, we provided tax relief to every person who pays income taxes, overcome a recession, opened up new markets abroad, prosecuted corporate criminals, raised homeownership to its highest level in history, and in the last year alone, the United States has added 2.3 million new jobs. When action was needed, the Congress delivered -- and the nation is grateful.  
2005-7	2005	Now we must add to these achievements. By making our economy more flexible, more innovative, and more competitive, we will keep America the economic leader of the world.  
2005-8	2005	America's prosperity requires restraining the spending appetite of the federal government. I welcome the bipartisan enthusiasm for spending discipline. I will send you a budget that holds the growth of discretionary spending below inflation, makes tax relief permanent, and stays on track to cut the deficit in half by 2009. My budget substantially reduces or eliminates more than 150 government programs that are not getting results, or duplicate current efforts, or do not fulfill essential priorities. The principle here is clear: Taxpayer dollars must be spent wisely, or not at all.  
2005-9	2005	To make our economy stronger and more dynamic, we must prepare a rising generation to fill the jobs of the 21st century. Under the No Child Left Behind Act, standards are higher, test scores are on the rise, and we're closing the achievement gap for minority students. Now we must demand better results from our high schools, so every high school diploma is a ticket to success. We will help an additional 200,000 workers to get training for a better career, by reforming our job training system and strengthening America's community colleges. And we'll make it easier for Americans to afford a college education, by increasing the size of Pell Grants.  
2005-10	2005	To make our economy stronger and more competitive, America must reward, not punish, the efforts and dreams of entrepreneurs. Small business is the path of advancement, especially for women and minorities, so we must free small businesses from needless regulation and protect honest job-creators from junk lawsuits. Justice is distorted, and our economy is held back by irresponsible class-actions and frivolous asbestos claims -- and I urge Congress to pass legal reforms this year.  
2005-11	2005	To make our economy stronger and more productive, we must make health care more affordable, and give families greater access to good coverage -- and more control over their health decisions. I ask Congress to move forward on a comprehensive health care agenda with tax credits to help low-income workers buy insurance, a community health center in every poor county, improved information technology to prevent medical error and needless costs, association health plans for small businesses and their employees -- -- expanded health savings accounts -- and medical liability reform that will reduce health care costs and make sure patients have the doctors and care they need.  
2005-12	2005	To keep our economy growing, we also need reliable supplies of affordable, environmentally responsible energy. Nearly four years ago, I submitted a comprehensive energy strategy that encourages conservation, alternative sources, a modernized electricity grid, and more production here at home -- including safe, clean nuclear energy. My Clear Skies legislation will cut power plant pollution and improve the health of our citizens. And my budget provides strong funding for leading-edge technology -- from hydrogen-fueled cars, to clean coal, to renewable sources such as ethanol. Four years of debate is enough: I urge Congress to pass legislation that makes America more secure and less dependent on foreign energy.  
2005-13	2005	All these proposals are essential to expand this economy and add new jobs -- but they are just the beginning of our duty. To build the prosperity of future generations, we must update institutions that were created to meet the needs of an earlier time. Year after year, Americans are burdened by an archaic, incoherent federal tax code. I've appointed a bipartisan panel to examine the tax code from top to bottom. And when their recommendations are delivered, you and I will work together to give this nation a tax code that is pro-growth, easy to understand, and fair to all.  
2005-14	2005	America's immigration system is also outdated -- unsuited to the needs of our economy and to the values of our country. We should not be content with laws that punish hardworking people who want only to provide for their families, and deny businesses willing workers, and invite chaos at our border. It is time for an immigration policy that permits temporary guest workers to fill jobs Americans will not take, that rejects amnesty, that tells us who is entering and leaving our country, and that closes the border to drug dealers and terrorists.  
2005-15	2005	One of America's most important institutions -- a symbol of the trust between generations -- is also in need of wise and effective reform. Social Security was a great moral success of the 20th century, and we must honor its great purposes in this new century. The system, however, on its current path, is headed toward bankruptcy. And so we must join together to strengthen and save Social Security.  
2005-16	2005	Today, more than 45 million Americans receive Social Security benefits, and millions more are nearing retirement -- and for them the system is sound and fiscally strong. I have a message for every American who is 55 or older: Do not let anyone mislead you; for you, the Social Security system will not change in any way. For younger workers, the Social Security system has serious problems that will grow worse with time. Social Security was created decades ago, for a very different era. In those days, people did not live as long. Benefits were much lower than they are today. And a half-century ago, about sixteen workers paid into the system for each person drawing benefits.  
2005-17	2005	Our society has changed in ways the founders of Social Security could not have foreseen. In today's world, people are living longer and, therefore, drawing benefits longer. And those benefits are scheduled to rise dramatically over the next few decades. And instead of sixteen workers paying in for every beneficiary, right now it's only about three workers. And over the next few decades that number will fall to just two workers per beneficiary. With each passing year, fewer workers are paying ever-higher benefits to an ever-larger number of retirees.  
2005-18	2005	So here is the result: Thirteen years from now, in 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. For example, in the year 2027, the government will somehow have to come up with an extra $200 billion to keep the system afloat -- and by 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt. If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing, or sudden and severe cuts in Social Security benefits or other government programs.  
2005-19	2005	I recognize that 2018 and 2042 may seem a long way off. But those dates are not so distant, as any parent will tell you. If you have a five-year-old, you're already concerned about how you'll pay for college tuition 13 years down the road. If you've got children in their 20s, as some of us do, the idea of Social Security collapsing before they retire does not seem like a small matter. And it should not be a small matter to the United States Congress. You and I share a responsibility. We must pass reforms that solve the financial problems of Social Security once and for all.  
2005-20	2005	Fixing Social Security permanently will require an open, candid review of the options. Some have suggested limiting benefits for wealthy retirees. Former Congressman Tim Penny has raised the possibility of indexing benefits to prices rather than wages. During the 1990s, my predecessor, President Clinton, spoke of increasing the retirement age. Former Senator John Breaux suggested discouraging early collection of Social Security benefits. The late Senator Daniel Patrick Moynihan recommended changing the way benefits are calculated. All these ideas are on the table.  
2005-21	2005	I know that none of these reforms would be easy. But we have to move ahead with courage and honesty, because our children's retirement security is more important than partisan politics. I will work with members of Congress to find the most effective combination of reforms. I will listen to anyone who has a good idea to offer. We must, however, be guided by some basic principles. We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower-income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.  
2005-22	2005	As we fix Social Security, we also have the responsibility to make the system a better deal for younger workers. And the best way to reach that goal is through voluntary personal retirement accounts. Here is how the idea works. Right now, a set portion of the money you earn is taken out of your paycheck to pay for the Social Security benefits of today's retirees. If you're a younger worker, I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future.  
2005-23	2005	Here's why the personal accounts are a better deal. Your money will grow, over time, at a greater rate than anything the current system can deliver -- and your account will provide money for retirement over and above the check you will receive from Social Security. In addition, you'll be able to pass along the money that accumulates in your personal account, if you wish, to your children and -- or grandchildren. And best of all, the money in the account is yours, and the government can never take it away.  
2005-24	2005	The goal here is greater security in retirement, so we will set careful guidelines for personal accounts. We'll make sure the money can only go into a conservative mix of bonds and stock funds. We'll make sure that your earnings are not eaten up by hidden Wall Street fees. We'll make sure there are good options to protect your investments from sudden market swings on the eve of your retirement. We'll make sure a personal account cannot be emptied out all at once, but rather paid out over time, as an addition to traditional Social Security benefits. And we'll make sure this plan is fiscally responsible, by starting personal retirement accounts gradually, and raising the yearly limits on contributions over time, eventually permitting all workers to set aside four percentage points of their payroll taxes in their accounts.  
2005-25	2005	Personal retirement accounts should be familiar to federal employees, because you already have something similar, called the Thrift Savings Plan, which lets workers deposit a portion of their paychecks into any of five different broadly-based investment funds. It's time to extend the same security, and choice, and ownership to young Americans.  
2005-26	2005	Our second great responsibility to our children and grandchildren is to honor and to pass along the values that sustain a free society. So many of my generation, after a long journey, have come home to family and faith, and are determined to bring up responsible, moral children. Government is not the source of these values, but government should never undermine them.  
2005-27	2005	Because marriage is a sacred institution and the foundation of society, it should not be re-defined by activist judges. For the good of families, children, and society, I support a constitutional amendment to protect the institution of marriage.  
2005-28	2005	Because a society is measured by how it treats the weak and vulnerable, we must strive to build a culture of life. Medical research can help us reach that goal, by developing treatments and cures that save lives and help people overcome disabilities -- and I thank the Congress for doubling the funding of the National Institutes of Health. To build a culture of life, we must also ensure that scientific advances always serve human dignity, not take advantage of some lives for the benefit of others. We should all be able to agree -- -- we should all be able to agree on some clear standards. I will work with Congress to ensure that human embryos are not created for experimentation or grown for body parts, and that human life is never bought and sold as a commodity. America will continue to lead the world in medical research that is ambitious, aggressive, and always ethical.  
2005-29	2005	Because courts must always deliver impartial justice, judges have a duty to faithfully interpret the law, not legislate from the bench. As President, I have a constitutional responsibility to nominate men and women who understand the role of courts in our democracy, and are well-qualified to serve on the bench -- and I have done so. The Constitution also gives the Senate a responsibility: Every judicial nominee deserves an up or down vote.  
2005-30	2005	Because one of the deepest values of our country is compassion, we must never turn away from any citizen who feels isolated from the opportunities of America. Our government will continue to support faith-based and community groups that bring hope to harsh places. Now we need to focus on giving young people, especially young men in our cities, better options than apathy, or gangs, or jail. Tonight I propose a three-year initiative to help organizations keep young people out of gangs, and show young men an ideal of manhood that respects women and rejects violence. Taking on gang life will be one part of a broader outreach to at-risk youth, which involves parents and pastors, coaches and community leaders, in programs ranging from literacy to sports. And I am proud that the leader of this nationwide effort will be our First Lady, Laura Bush.  
2005-31	2005	Because HIV/AIDS brings suffering and fear into so many lives, I ask you to reauthorize the Ryan White Act to encourage prevention, and provide care and treatment to the victims of that disease. And as we update this important law, we must focus our efforts on fellow citizens with the highest rates of new cases, African American men and women.  
2005-32	2005	Because one of the main sources of our national unity is our belief in equal justice, we need to make sure Americans of all races and backgrounds have confidence in the system that provides justice. In America we must make doubly sure no person is held to account for a crime he or she did not commit -- so we are dramatically expanding the use of DNA evidence to prevent wrongful conviction. Soon I will send to Congress a proposal to fund special training for defense counsel in capital cases, because people on trial for their lives must have competent lawyers by their side.  
2005-33	2005	Our third responsibility to future generations is to leave them an America that is safe from danger, and protected by peace. We will pass along to our children all the freedoms we enjoy -- and chief among them is freedom from fear.  
2005-34	2005	In the three and a half years since September the 11th, 2001, we have taken unprecedented actions to protect Americans. We've created a new department of government to defend our homeland, focused the FBI on preventing terrorism, begun to reform our intelligence agencies, broken up terror cells across the country, expanded research on defenses against biological and chemical attack, improved border security, and trained more than a half-million first responders. Police and firefighters, air marshals, researchers, and so many others are working every day to make our homeland safer, and we thank them all.  
2005-35	2005	Our nation, working with allies and friends, has also confronted the enemy abroad, with measures that are determined, successful, and continuing. The al Qaeda terror network that attacked our country still has leaders -- but many of its top commanders have been removed. There are still governments that sponsor and harbor terrorists -- but their number has declined. There are still regimes seeking weapons of mass destruction -- but no longer without attention and without consequence. Our country is still the target of terrorists who want to kill many, and intimidate us all -- and we will stay on the offensive against them, until the fight is won.  
2005-36	2005	Pursuing our enemies is a vital commitment of the war on terror -- and I thank the Congress for providing our servicemen and women with the resources they have needed. During this time of war, we must continue to support our military and give them the tools for victory.  
2005-37	2005	Other nations around the globe have stood with us. In Afghanistan, an international force is helping provide security. In Iraq, 28 countries have troops on the ground, the United Nations and the European Union provided technical assistance for the elections, and NATO is leading a mission to help train Iraqi officers. We're cooperating with 60 governments in the Proliferation Security Initiative, to detect and stop the transit of dangerous materials. We're working closely with the governments in Asia to convince North Korea to abandon its nuclear ambitions. Pakistan, Saudi Arabia, and nine other countries have captured or detained al Qaeda terrorists. In the next four years, my administration will continue to build the coalitions that will defeat the dangers of our time.  
2005-38	2005	In the long-term, the peace we seek will only be achieved by eliminating the conditions that feed radicalism and ideologies of murder. If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror, and that terror will stalk America and other free nations for decades. The only force powerful enough to stop the rise of tyranny and terror, and replace hatred with hope, is the force of human freedom. Our enemies know this, and that is why the terrorist Zarqawi recently declared war on what he called the "evil principle" of democracy. And we've declared our own intention: America will stand with the allies of freedom to support democratic movements in the Middle East and beyond, with the ultimate goal of ending tyranny in our world.  
2005-39	2005	The United States has no right, no desire, and no intention to impose our form of government on anyone else. That is one of the main differences between us and our enemies. They seek to impose and expand an empire of oppression, in which a tiny group of brutal, self-appointed rulers control every aspect of every life. Our aim is to build and preserve a community of free and independent nations, with governments that answer to their citizens, and reflect their own cultures. And because democracies respect their own people and their neighbors, the advance of freedom will lead to peace.  
2005-40	2005	That advance has great momentum in our time -- shown by women voting in Afghanistan, and Palestinians choosing a new direction, and the people of Ukraine asserting their democratic rights and electing a president. We are witnessing landmark events in the history of liberty. And in the coming years, we will add to that story.  
2005-41	2005	The beginnings of reform and democracy in the Palestinian territories are now showing the power of freedom to break old patterns of violence and failure. Tomorrow morning, Secretary of State Rice departs on a trip that will take her to Israel and the West Bank for meetings with Prime Minister Sharon and President Abbas. She will discuss with them how we and our friends can help the Palestinian people end terror and build the institutions of a peaceful, independent, democratic state. To promote this democracy, I will ask Congress for $350 million to support Palestinian political, economic, and security reforms. The goal of two democratic states, Israel and Palestine, living side by side in peace, is within reach -- and America will help them achieve that goal.  
2005-42	2005	To promote peace and stability in the broader Middle East, the United States will work with our friends in the region to fight the common threat of terror, while we encourage a higher standard of freedom. Hopeful reform is already taking hold in an arc from Morocco to Jordan to Bahrain. The government of Saudi Arabia can demonstrate its leadership in the region by expanding the role of its people in determining their future. And the great and proud nation of Egypt, which showed the way toward peace in the Middle East, can now show the way toward democracy in the Middle East.  
2005-43	2005	To promote peace in the broader Middle East, we must confront regimes that continue to harbor terrorists and pursue weapons of mass murder. Syria still allows its territory, and parts of Lebanon, to be used by terrorists who seek to destroy every chance of peace in the region. You have passed, and we are applying, the Syrian Accountability Act -- and we expect the Syrian government to end all support for terror and open the door to freedom. Today, Iran remains the world's primary state sponsor of terror -- pursuing nuclear weapons while depriving its people of the freedom they seek and deserve. We are working with European allies to make clear to the Iranian regime that it must give up its uranium enrichment program and any plutonium reprocessing, and end its support for terror. And to the Iranian people, I say tonight: As you stand for your own liberty, America stands with you.  
2005-44	2005	Our generational commitment to the advance of freedom, especially in the Middle East, is now being tested and honored in Iraq. That country is a vital front in the war on terror, which is why the terrorists have chosen to make a stand there. Our men and women in uniform are fighting terrorists in Iraq, so we do not have to face them here at home. And the victory of freedom in Iraq will strengthen a new ally in the war on terror, inspire democratic reformers from Damascus to Tehran, bring more hope and progress to a troubled region, and thereby lift a terrible threat from the lives of our children and grandchildren.  
2005-45	2005	We will succeed because the Iraqi people value their own liberty -- as they showed the world last Sunday. Across Iraq, often at great risk, millions of citizens went to the polls and elected 275 men and women to represent them in a new Transitional National Assembly. A young woman in Baghdad told of waking to the sound of mortar fire on election day, and wondering if it might be too dangerous to vote. She said, "Hearing those explosions, it occurred to me -- the insurgents are weak, they are afraid of democracy, they are losing. So I got my husband, and I got my parents, and we all came out and voted together."  
2005-46	2005	Americans recognize that spirit of liberty, because we share it. In any nation, casting your vote is an act of civic responsibility; for millions of Iraqis, it was also an act of personal courage, and they have earned the respect of us all.  
2005-47	2005	One of Iraq's leading democracy and human rights advocates is Safia Taleb al-Suhail. She says of her country, "We were occupied for 35 years by Saddam Hussein. That was the real occupation. Thank you to the American people who paid the cost, but most of all, to the soldiers." Eleven years ago, Safia's father was assassinated by Saddam's intelligence service. Three days ago in Baghdad, Safia was finally able to vote for the leaders of her country -- and we are honored that she is with us tonight.  
2005-48	2005	The terrorists and insurgents are violently opposed to democracy, and will continue to attack it. Yet, the terrorists' most powerful myth is being destroyed. The whole world is seeing that the car bombers and assassins are not only fighting coalition forces, they are trying to destroy the hopes of Iraqis, expressed in free elections. And the whole world now knows that a small group of extremists will not overturn the will of the Iraqi people.  
2005-49	2005	We will succeed in Iraq because Iraqis are determined to fight for their own freedom, and to write their own history. As Prime Minister Allawi said in his speech to Congress last September, "Ordinary Iraqis are anxious to shoulder all the security burdens of our country as quickly as possible." That is the natural desire of an independent nation, and it is also the stated mission of our coalition in Iraq. The new political situation in Iraq opens a new phase of our work in that country.  
2005-50	2005	At the recommendation of our commanders on the ground, and in consultation with the Iraqi government, we will increasingly focus our efforts on helping prepare more capable Iraqi security forces -- forces with skilled officers and an effective command structure. As those forces become more self-reliant and take on greater security responsibilities, America and its coalition partners will increasingly be in a supporting role. In the end, Iraqis must be able to defend their own country -- and we will help that proud, new nation secure its liberty.  
2005-51	2005	Recently an Iraqi interpreter said to a reporter, "Tell America not to abandon us." He and all Iraqis can be certain: While our military strategy is adapting to circumstances, our commitment remains firm and unchanging. We are standing for the freedom of our Iraqi friends, and freedom in Iraq will make America safer for generations to come. We will not set an artificial timetable for leaving Iraq, because that would embolden the terrorists and make them believe they can wait us out. We are in Iraq to achieve a result: A country that is democratic, representative of all its people, at peace with its neighbors, and able to defend itself. And when that result is achieved, our men and women serving in Iraq will return home with the honor they have earned.  
2005-52	2005	Right now, Americans in uniform are serving at posts across the world, often taking great risks on my orders. We have given them training and equipment; and they have given us an example of idealism and character that makes every American proud. The volunteers of our military are unrelenting in battle, unwavering in loyalty, unmatched in honor and decency, and every day they're making our nation more secure. Some of our servicemen and women have survived terrible injuries, and this grateful country will do everything we can to help them recover. And we have said farewell to some very good men and women, who died for our freedom, and whose memory this nation will honor forever.  
2005-53	2005	One name we honor is Marine Corps Sergeant Byron Norwood of Pflugerville, Texas, who was killed during the assault on Fallujah. His mom, Janet, sent me a letter and told me how much Byron loved being a Marine, and how proud he was to be on the front line against terror. She wrote, "When Byron was home the last time, I said that I wanted to protect him like I had since he was born. He just hugged me and said, 'You've done your job, Mom. Now it is my turn to protect you.'" Ladies and gentlemen, with grateful hearts, we honor freedom's defenders, and our military families, represented here this evening by Sergeant Norwood's mom and dad, Janet and Bill Norwood.  
2005-54	2005	In these four years, Americans have seen the unfolding of large events. We have known times of sorrow, and hours of uncertainty, and days of victory. In all this history, even when we have disagreed, we have seen threads of purpose that unite us. The attack on freedom in our world has reaffirmed our confidence in freedom's power to change the world. We are all part of a great venture: To extend the promise of freedom in our country, to renew the values that sustain our liberty, and to spread the peace that freedom brings.  
2005-55	2005	As Franklin Roosevelt once reminded Americans, "Each age is a dream that is dying, or one that is coming to birth." And we live in the country where the biggest dreams are born. The abolition of slavery was only a dream -- until it was fulfilled. The liberation of Europe from fascism was only a dream -- until it was achieved. The fall of imperial communism was only a dream -- until, one day, it was accomplished. Our generation has dreams of its own, and we also go forward with confidence. The road of Providence is uneven and unpredictable -- yet we know where it leads: It leads to freedom.  
2005-56	2005	Thank you, and may God bless America.  
2006-1	2006	Mr. Speaker, Vice President Cheney, Members of Congress, Members of the Supreme Court and diplomatic corps, distinguished guests, and fellow citizens:  
2006-2	2006	Today our Nation lost a beloved, graceful, courageous woman who called America to its founding ideals and carried on a noble dream. Tonight we are comforted by the hope of a glad reunion with the husband who was taken from her so long ago, and we are grateful for the good life of Coretta Scott King.  
2006-3	2006	Each time I am invited to this rostrum, I am humbled by the privilege, and mindful of the history we have seen together. We have gathered under this Capitol dome in moments of national mourning and national achievement. We have served America through one of the most consequential periods of our history – and it has been my honor to serve with you.  
2006-4	2006	In a system of two parties, two chambers, and two elected branches, there will always be differences and debate. But even tough debates can be conducted in a civil tone, and our differences cannot be allowed to harden into anger. To confront the great issues before us, we must act in a spirit of good will and respect for one another – and I will do my part. Tonight the state of our Union is strong – and together we will make it stronger.  
2006-5	2006	In this decisive year, you and I will make choices that determine both the future and the character of our country. We will choose to act confidently in pursuing the enemies of freedom – or retreat from our duties in the hope of an easier life. We will choose to build our prosperity by leading the world economy – or shut ourselves off from trade and opportunity. In a complex and challenging time, the road of isolationism and protectionism may seem broad and inviting – yet it ends in danger and decline. The only way to protect our people … the only way to secure the peace … the only way to control our destiny is by our leadership – so the United States of America will continue to lead.  
2006-6	2006	Abroad, our Nation is committed to an historic, long-term goal – we seek the end of tyranny in our world. Some dismiss that goal as misguided idealism. In reality, the future security of America depends on it. On September 11th, 2001, we found that problems originating in a failed and oppressive state seven thousand miles away could bring murder and destruction to our country. Dictatorships shelter terrorists, feed resentment and radicalism, and seek weapons of mass destruction. Democracies replace resentment with hope, respect the rights of their citizens and their neighbors, and join the fight against terror. Every step toward freedom in the world makes our country safer, and so we will act boldly in freedom’s cause.  
2006-7	2006	Far from being a hopeless dream, the advance of freedom is the great story of our time. In 1945, there were about two dozen lonely democracies on Earth. Today, there are 122. And we are writing a new chapter in the story of self-government – with women lining up to vote in Afghanistan … and millions of Iraqis marking their liberty with purple ink … and men and women from Lebanon to Egypt debating the rights of individuals and the necessity of freedom. At the start of 2006, more than half the people of our world live in democratic nations. And we do not forget the other half – in places like Syria, Burma, Zimbabwe, North Korea, and Iran – because the demands of justice, and the peace of this world, require their freedom as well.  
2006-8	2006	No one can deny the success of freedom, but some men rage and fight against it. And one of the main sources of reaction and opposition is radical Islam – the perversion by a few of a noble faith into an ideology of terror and death. Terrorists like bin Laden are serious about mass murder – and all of us must take their declared intentions seriously. They seek to impose a heartless system of totalitarian control throughout the Middle East, and arm themselves with weapons of mass murder. Their aim is to seize power in Iraq, and use it as a safe haven to launch attacks against America and the world. Lacking the military strength to challenge us directly, the terrorists have chosen the weapon of fear. When they murder children at a school in Beslan … or blow up commuters in London … or behead a bound captive … the terrorists hope these horrors will break our will, allowing the violent to inherit the Earth. But they have miscalculated: We love our freedom, and we will fight to keep it.  
2006-9	2006	In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers alone, they would not leave us alone. They would simply move the battlefield to our own shores. There is no peace in retreat. And there is no honor in retreat. By allowing radical Islam to work its will – by leaving an assaulted world to fend for itself – we would signal to all that we no longer believe in our own ideals, or even in our own courage. But our enemies and our friends can be certain: The United States will not retreat from the world, and we will never surrender to evil.  
2006-10	2006	America rejects the false comfort of isolationism. We are the Nation that saved liberty in Europe, and liberated death camps, and helped raise up democracies, and faced down an evil empire. Once again, we accept the call of history to deliver the oppressed, and move this world toward peace.  
2006-11	2006	We remain on the offensive against terror networks. We have killed or captured many of their leaders – and for the others, their day will come.  
2006-12	2006	We remain on the offensive in Afghanistan – where a fine president and national assembly are fighting terror while building the institutions of a new democracy.  
2006-13	2006	And we are on the offensive in Iraq, with a clear plan for victory. First, we are helping Iraqis build an inclusive government, so that old resentments will be eased, and the insurgency marginalized. Second, we are continuing reconstruction efforts, and helping the Iraqi government to fight corruption and build a modern economy, so all Iraqis can experience the benefits of freedom. Third, we are striking terrorist targets while we train Iraqi forces that are increasingly capable of defeating the enemy. Iraqis are showing their courage every day, and we are proud to be their allies in the cause of freedom.  
2006-14	2006	Our work in Iraq is difficult, because our enemy is brutal. But that brutality has not stopped the dramatic progress of a new democracy. In less than three years, that nation has gone from dictatorship, to liberation, to sovereignty, to a constitution, to national elections. At the same time, our coalition has been relentless in shutting off terrorist infiltration, clearing out insurgent strongholds, and turning over territory to Iraqi security forces. I am confident in our plan for victory … I am confident in the will of the Iraqi people … I am confident in the skill and spirit of our military. Fellow citizens, we are in this fight to win, and we are winning.  
2006-15	2006	The road of victory is the road that will take our troops home. As we make progress on the ground, and Iraqi forces increasingly take the lead, we should be able to further decrease our troop levels – but those decisions will be made by our military commanders, not by politicians in Washington, D.C.  
2006-16	2006	Our coalition has learned from experience in Iraq. We have adjusted our military tactics and changed our approach to reconstruction. Along the way, we have benefited from responsible criticism and counsel offered by Members of Congress of both parties. In the coming year, I will continue to reach out and seek your good advice.  
2006-17	2006	Yet there is a difference between responsible criticism that aims for success, and defeatism that refuses to acknowledge anything but failure. Hindsight alone is not wisdom. And second-guessing is not a strategy.  
2006-18	2006	With so much in the balance, those of us in public office have a duty to speak with candor. A sudden withdrawal of our forces from Iraq would abandon our Iraqi allies to death and prison … put men like bin Laden and Zarqawi in charge of a strategic country … and show that a pledge from America means little. Members of Congress: however we feel about the decisions and debates of the past, our Nation has only one option: We must keep our word, defeat our enemies, and stand behind the American military in its vital mission.  
2006-19	2006	Our men and women in uniform are making sacrifices – and showing a sense of duty stronger than all fear. They know what it is like to fight house to house in a maze of streets … to wear heavy gear in the desert heat … to see a comrade killed by a roadside bomb. And those who know the costs also know the stakes. Marine Staff Sergeant Dan Clay was killed last month fighting the enemy in Fallujah. He left behind a letter to his family, but his words could just as well be addressed to every American. Here is what Dan wrote: “I know what honor is. It has been an honor to protect and serve all of you. I faced death with the secure knowledge that you would not have to…. Never falter! Don’t hesitate to honor and support those of us who have the honor of protecting that which is worth protecting.”  
2006-20	2006	Staff Sergeant Dan Clay’s wife, Lisa, and his mom and dad, Sara Jo and Bud, are with us this evening. Our Nation is grateful to the fallen, who live in the memory of our country. We are grateful to all who volunteer to wear our Nation’s uniform – and as we honor our brave troops, let us never forget the sacrifices of America’s military families.  
2006-21	2006	Our offensive against terror involves more than military action. Ultimately, the only way to defeat the terrorists is to defeat their dark vision of hatred and fear by offering the hopeful alternative of political freedom and peaceful change. So the United States of America supports democratic reform across the broader Middle East. Elections are vital – but they are only the beginning. Raising up a democracy requires the rule of law, protection of minorities, and strong, accountable institutions that last longer than a single vote. The great people of Egypt have voted in a multi-party presidential election – and now their government should open paths of peaceful opposition that will reduce the appeal of radicalism. The Palestinian people have voted in elections – now the leaders of Hamas must recognize Israel, disarm, reject terrorism, and work for lasting peace. Saudi Arabia has taken the first steps of reform – now it can offer its people a better future by pressing forward with those efforts. Democracies in the Middle East will not look like our own, because they will reflect the traditions of their own citizens. Yet liberty is the future of every nation in the Middle East, because liberty is the right and hope of all humanity.  
2006-22	2006	The same is true of Iran, a nation now held hostage by a small clerical elite that is isolating and repressing its people. The regime in that country sponsors terrorists in the Palestinian territories and in Lebanon – and that must come to an end. The Iranian government is defying the world with its nuclear ambitions – and the nations of the world must not permit the Iranian regime to gain nuclear weapons. America will continue to rally the world to confront these threats. And tonight, let me speak directly to the citizens of Iran: America respects you, and we respect your country. We respect your right to choose your own future and win your own freedom. And our Nation hopes one day to be the closest of friends with a free and democratic Iran.  
2006-23	2006	To overcome dangers in our world, we must also take the offensive by encouraging economic progress, fighting disease, and spreading hope in hopeless lands. Isolationism would not only tie our hands in fighting enemies, it would keep us from helping our friends in desperate need. We show compassion abroad because Americans believe in the God-given dignity and worth of a villager with HIV/AIDS, or an infant with malaria, or a refugee fleeing genocide, or a young girl sold into slavery. We also show compassion abroad because regions overwhelmed by poverty, corruption, and despair are sources of terrorism, organized crime, human trafficking, and the drug trade.  
2006-24	2006	In recent years, you and I have taken unprecedented action to fight AIDS and malaria, expand the education of girls, and reward developing nations that are moving forward with economic and political reform. For people everywhere, the United States is a partner for a better life. Short-changing these efforts would increase the suffering and chaos of our world, undercut our long-term security, and dull the conscience of our country. I urge Members of Congress to serve the interests of America by showing the compassion of America.  
2006-25	2006	Our country must also remain on the offensive against terrorism here at home. The enemy has not lost the desire or capability to attack us. Fortunately, this Nation has superb professionals in law enforcement, intelligence, the military, and homeland security. These men and women are dedicating their lives to protecting us all, and they deserve our support and our thanks. They also deserve the same tools they already use to fight drug trafficking and organized crime – so I ask you to reauthorize the Patriot Act.  
2006-26	2006	It is said that prior to the attacks of September 11th, our government failed to connect the dots of the conspiracy. We now know that two of the hijackers in the United States placed telephone calls to al-Qaida operatives overseas. But we did not know about their plans until it was too late. So to prevent another attack – based on authority given to me by the Constitution and by statute – I have authorized a terrorist surveillance program to aggressively pursue the international communications of suspected al-Qaida operatives and affiliates to and from America. Previous presidents have used the same constitutional authority I have – and Federal courts have approved the use of that authority. Appropriate Members of Congress have been kept informed. This terrorist surveillance program has helped prevent terrorist attacks. It remains essential to the security of America. If there are people inside our country who are talking with al-Qaida, we want to know about it – because we will not sit back and wait to be hit again.  
2006-27	2006	In all these areas – from the disruption of terror networks, to victory in Iraq, to the spread of freedom and hope in troubled regions – we need the support of friends and allies. To draw that support, we must always be clear in our principles and willing to act. The only alternative to American leadership is a dramatically more dangerous and anxious world. Yet we also choose to lead because it is a privilege to serve the values that gave us birth. American leaders – from Roosevelt to Truman to Kennedy to Reagan – rejected isolation and retreat, because they knew that America is always more secure when freedom is on the march. Our own generation is in a long war against a determined enemy – a war that will be fought by Presidents of both parties, who will need steady bipartisan support from the Congress. And tonight I ask for yours. Together, let us protect our country, support the men and women who defend us, and lead this world toward freedom.  
2006-28	2006	Here at home, America also has a great opportunity: We will build the prosperity of our country by strengthening our economic leadership in the world.  
2006-29	2006	Our economy is healthy, and vigorous, and growing faster than other major industrialized nations. In the last two-and-a-half years, America has created 4.6 million new jobs – more than Japan and the European Union combined. Even in the face of higher energy prices and natural disasters, the American people have turned in an economic performance that is the envy of the world.  
2006-30	2006	The American economy is pre-eminent – but we cannot afford to be complacent. In a dynamic world economy, we are seeing new competitors like China and India. This creates uncertainty, which makes it easier to feed people’s fears. And so we are seeing some old temptations return. Protectionists want to escape competition, pretending that we can keep our high standard of living while walling off our economy. Others say that the government needs to take a larger role in directing the economy, centralizing more power in Washington and increasing taxes. We hear claims that immigrants are somehow bad for the economy – even though this economy could not function without them. All these are forms of economic retreat, and they lead in the same direction – toward a stagnant and second-rate economy.  
2006-31	2006	Tonight I will set out a better path – an agenda for a Nation that competes with confidence – an agenda that will raise standards of living and generate new jobs. Americans should not fear our economic future, because we intend to shape it.  
2006-32	2006	Keeping America competitive begins with keeping our economy growing. And our economy grows when Americans have more of their own money to spend, save, and invest. In the last five years, the tax relief you passed has left 880 billion dollars in the hands of American workers, investors, small businesses, and families – and they have used it to help produce more than four years of uninterrupted economic growth. Yet the tax relief is set to expire in the next few years. If we do nothing, American families will face a massive tax increase they do not expect and will not welcome.  
2006-33	2006	Because America needs more than a temporary expansion, we need more than temporary tax relief. I urge the Congress to act responsibly, and make the tax cuts permanent.  
2006-34	2006	Keeping America competitive requires us to be good stewards of tax dollars. Every year of my presidency, we have reduced the growth of non-security discretionary spending – and last year you passed bills that cut this spending. This year my budget will cut it again, and reduce or eliminate more than 140 programs that are performing poorly or not fulfilling essential priorities. By passing these reforms, we will save the American taxpayer another 14 billion dollars next year – and stay on track to cut the deficit in half by 2009. I am pleased that Members of Congress are working on earmark reform – because the Federal budget has too many special interest projects. And we can tackle this problem together, if you pass the line-item veto.  
2006-35	2006	We must also confront the larger challenge of mandatory spending, or entitlements. This year, the first of about 78 million Baby Boomers turn 60, including two of my Dad’s favorite people – me, and President Bill Clinton. This milestone is more than a personal crisis – it is a national challenge. The retirement of the Baby Boom generation will put unprecedented strains on the Federal government. By 2030, spending for Social Security, Medicare, and Medicaid alone will be almost 60 percent of the entire Federal budget. And that will present future Congresses with impossible choices – staggering tax increases, immense deficits, or deep cuts in every category of spending.  
2006-36	2006	Congress did not act last year on my proposal to save Social Security, yet the rising cost of entitlements is a problem that is not going away – and with every year we fail to act, the situation gets worse. So tonight, I ask you to join me in creating a commission to examine the full impact of Baby Boom retirements on Social Security, Medicare, and Medicaid. This commission should include Members of Congress of both parties, and offer bipartisan answers. We need to put aside partisan politics, work together, and get this problem solved.  
2006-37	2006	Keeping America competitive requires us to open more markets for all that Americans make and grow. One out of every five factory jobs in America is related to global trade, and we want people everywhere to buy American. With open markets and a level playing field, no one can out-produce or out-compete the American worker.  
2006-38	2006	Keeping America competitive requires an immigration system that upholds our laws, reflects our values, and serves the interests of our economy. Our Nation needs orderly and secure borders. To meet this goal, we must have stronger immigration enforcement and border protection. And we must have a rational, humane guest worker program that rejects amnesty … allows temporary jobs for people who seek them legally … and reduces smuggling and crime at the border.  
2006-39	2006	Keeping America competitive requires affordable health care. Our government has a responsibility to help provide health care for the poor and the elderly, and we are meeting that responsibility. For all Americans, we must confront the rising cost of care … strengthen the doctor-patient relationship … and help people afford the insurance coverage they need. We will make wider use of electronic records and other health information technology, to help control costs and reduce dangerous medical errors. We will strengthen Health Savings Accounts – by making sure individuals and small business employees can buy insurance with the same advantages that people working for big businesses now get. We will do more to make this coverage portable, so workers can switch jobs without having to worry about losing their health insurance. And because lawsuits are driving many good doctors out of practice – leaving women in nearly 1,500 American counties without a single OB-GYN – I ask the Congress to pass medical liability reform this year.  
2006-40	2006	Keeping America competitive requires affordable energy. Here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.  
2006-41	2006	The best way to break this addiction is through technology. Since 2001, we have spent nearly 10 billion dollars to develop cleaner, cheaper, more reliable alternative energy sources – and we are on the threshold of incredible advances. So tonight, I announce the Advanced Energy Initiative – a 22-percent increase in clean-energy research at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants; revolutionary solar and wind technologies; and clean, safe nuclear energy.  
2006-42	2006	We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips, stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. By applying the talent and technology of America, this country can dramatically improve our environment … move beyond a petroleum-based economy … and make our dependence on Middle Eastern oil a thing of the past.  
2006-43	2006	And to keep America competitive, one commitment is necessary above all: We must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hard-working, ambitious people – and we are going to keep that edge. Tonight I announce the American Competitiveness Initiative, to encourage innovation throughout our economy, and to give our Nation’s children a firm grounding in math and science.  
2006-44	2006	First: I propose to double the Federal commitment to the most critical basic research programs in the physical sciences over the next ten years. This funding will support the work of America’s most creative minds as they explore promising areas such as nanotechnology, supercomputing, and alternative energy sources.  
2006-45	2006	Second: I propose to make permanent the research and development tax credit, to encourage bolder private-sector investment in technology. With more research in both the public and private sectors, we will improve our quality of life – and ensure that America will lead the world in opportunity and innovation for decades to come.  
2006-46	2006	Third: We need to encourage children to take more math and science, and make sure those courses are rigorous enough to compete with other nations. We have made a good start in the early grades with the No Child Left Behind Act, which is raising standards and lifting test scores across our country. Tonight I propose to train 70,000 high school teachers, to lead advanced-placement courses in math and science … bring 30,000 math and science professionals to teach in classrooms … and give early help to students who struggle with math, so they have a better chance at good, high-wage jobs. If we ensure that America’s children succeed in life, they will ensure that America succeeds in the world.  
2006-47	2006	Preparing our Nation to compete in the world is a goal that all of us can share. I urge you to support the American Competitiveness Initiative … and together we will show the world what the American people can achieve.  
2006-48	2006	America is a great force for freedom and prosperity. Yet our greatness is not measured in power or luxuries, but by who we are and how we treat one another. So we strive to be a compassionate, decent, hopeful society.  
2006-49	2006	In recent years, America has become a more hopeful Nation. Violent crime rates have fallen to their lowest levels since the 1970s. Welfare cases have dropped by more than half over the past decade. Drug use among youth is down 19 percent since 2001. There are fewer abortions in America than at any point in the last three decades, and the number of children born to teenage mothers has been falling for a dozen years in a row.  
2006-50	2006	These gains are evidence of a quiet transformation – a revolution of conscience, in which a rising generation is finding that a life of personal responsibility is a life of fulfillment. Government has played a role. Wise policies such as welfare reform, drug education, and support for abstinence and adoption have made a difference in the character of our country. And everyone here tonight, Democrat and Republican, has a right to be proud of this record.  
2006-51	2006	Yet many Americans, especially parents, still have deep concerns about the direction of our culture, and the health of our most basic institutions. They are concerned about unethical conduct by public officials, and discouraged by activist courts that try to redefine marriage. And they worry about children in our society who need direction and love … and about fellow citizens still displaced by natural disaster … and about suffering caused by treatable diseases.  
2006-52	2006	As we look at these challenges, we must never give in to the belief that America is in decline, or that our culture is doomed to unravel. The American people know better than that. We have proven the pessimists wrong before – and we will do it again.  
2006-53	2006	A hopeful society depends on courts that deliver equal justice under law. The Supreme Court now has two superb new members, Chief Justice John Roberts and Justice Sam Alito. I thank the Senate for confirming both of them. And I will continue to nominate men and women who understand that judges must be servants of the law, and not legislate from the bench. Today marks the official retirement of a very special American. For 24 years of faithful service to our Nation, the United States is grateful to Justice Sandra Day O’Connor.  
2006-54	2006	A hopeful society has institutions of science and medicine that do not cut ethical corners, and that recognize the matchless value of every life. Tonight I ask you to pass legislation to prohibit the most egregious abuses of medical research – human cloning in all its forms … creating or implanting embryos for experiments … creating human-animal hybrids … and buying, selling, or patenting human embryos. Human life is a gift from our Creator – and that gift should never be discarded, devalued, or put up for sale.  
2006-55	2006	A hopeful society expects elected officials to uphold the public trust. Honorable people in both parties are working on reforms to strengthen the ethical standards of Washington – and I support your efforts. Each of us has made a pledge to be worthy of public responsibility – and that is a pledge we must never forget, never dismiss, and never betray.  
2006-56	2006	As we renew the promise of our institutions, let us also show the character of America in our compassion and care for one another.  
2006-57	2006	A hopeful society gives special attention to children who lack direction and love. Through the Helping America’s Youth Initiative, we are encouraging caring adults to get involved in the life of a child – and this good work is led by our First Lady, Laura Bush. This year we will add resources to encourage young people to stay in school – so more of America’s youth can raise their sights and achieve their dreams.  
2006-58	2006	A hopeful society comes to the aid of fellow citizens in times of suffering and emergency – and stays at it until they are back on their feet. So far the Federal government has committed 85 billion dollars to the people of the Gulf Coast and New Orleans. We are removing debris, repairing highways, and building stronger levees. We are providing business loans and housing assistance. Yet as we meet these immediate needs, we must also address deeper challenges that existed before the storm arrived. In New Orleans and in other places, many of our fellow citizens have felt excluded from the promise of our country. The answer is not only temporary relief, but schools that teach every child … and job skills that bring upward mobility … and more opportunities to own a home and start a business. As we recover from a disaster, let us also work for the day when all Americans are protected by justice, equal in hope, and rich in opportunity.  
2006-59	2006	A hopeful society acts boldly to fight diseases like HIV/AIDS, which can be prevented, and treated, and defeated. More than a million Americans live with HIV, and half of all AIDS cases occur among African-Americans. I ask Congress to reform and reauthorize the Ryan White Act … and provide new funding to states, so we end the waiting lists for AIDS medicine in America. We will also lead a nationwide effort, working closely with African-American churches and faith-based groups, to deliver rapid HIV tests to millions, end the stigma of AIDS, and come closer to the day when there are no new infections in America.  
2006-60	2006	Fellow citizens, we have been called to leadership in a period of consequence. We have entered a great ideological conflict we did nothing to invite. We see great changes in science and commerce that will influence all our lives. And sometimes it can seem that history is turning in a wide arc, toward an unknown shore.  
2006-61	2006	Yet the destination of history is determined by human action, and every great movement of history comes to a point of choosing. Lincoln could have accepted peace at the cost of disunity and continued slavery. Martin Luther King could have stopped at Birmingham or at Selma, and achieved only half a victory over segregation. The United States could have accepted the permanent division of Europe, and been complicit in the oppression of others. Today, having come far in our own historical journey, we must decide: Will we turn back, or finish well?  
2006-62	2006	Before history is written down in books, it is written in courage. Like Americans before us, we will show that courage and we will finish well. We will lead freedom’s advance. We will compete and excel in the global economy. We will renew the defining moral commitments of this land. And so we move forward – optimistic about our country, faithful to its cause, and confident of victories to come.  
2007-1	2007	Thank you very much. And tonight, I have a high privilege and distinct honor of my own -- as the first President to begin the State of the Union message with these words: Madam Speaker (Applause.)  
2007-2	2007	In his day, the late Congressman Thomas D'Alesandro, Jr. from Baltimore, Maryland, saw Presidents Roosevelt and Truman at this rostrum. But nothing could compare with the sight of his only daughter, Nancy, presiding tonight as Speaker of the House of Representatives. (Applause.) Congratulations, Madam Speaker. (Applause.)  
2007-3	2007	Two members of the House and Senate are not with us tonight, and we pray for the recovery and speedy return of Senator Tim Johnson and Congressman Charlie Norwood. (Applause.)  
2007-4	2007	Madam Speaker, Vice President Cheney, members of Congress, distinguished guests, and fellow citizens:  
2007-5	2007	The rite of custom brings us together at a defining hour -- when decisions are hard and courage is needed. We enter the year 2007 with large endeavors underway, and others that are ours to begin. In all of this, much is asked of us. We must have the will to face difficult challenges and determined enemies -- and the wisdom to face them together.  
2007-6	2007	Some in this chamber are new to the House and the Senate -- and I congratulate the Democrat majority. (Applause.) Congress has changed, but not our responsibilities. Each of us is guided by our own convictions -- and to these we must stay faithful. Yet we're all held to the same standards, and called to serve the same good purposes: To extend this nation's prosperity; to spend the people's money wisely; to solve problems, not leave them to future generations; to guard America against all evil; and to keep faith with those we have sent forth to defend us. (Applause.)  
2007-7	2007	We're not the first to come here with a government divided and uncertainty in the air. Like many before us, we can work through our differences, and achieve big things for the American people. Our citizens don't much care which side of the aisle we sit on -- as long as we're willing to cross that aisle when there is work to be done. (Applause.) Our job is to make life better for our fellow Americans, and to help them to build a future of hope and opportunity -- and this is the business before us tonight.  
2007-8	2007	A future of hope and opportunity begins with a growing economy -- and that is what we have. We're now in the 41st month of uninterrupted job growth, in a recovery that has created 7.2 million new jobs -- so far. Unemployment is low, inflation is low, and wages are rising. This economy is on the move, and our job is to keep it that way, not with more government, but with more enterprise. (Applause.)  
2007-9	2007	Next week, I'll deliver a full report on the state of our economy. Tonight, I want to discuss three economic reforms that deserve to be priorities for this Congress.  
2007-10	2007	First, we must balance the federal budget. (Applause.) We can do so without raising taxes. (Applause.) What we need is impose spending discipline in Washington, D.C. We set a goal of cutting the deficit in half by 2009, and met that goal three years ahead of schedule. (Applause.) Now let us take the next step. In the coming weeks, I will submit a budget that eliminates the federal deficit within the next five years. (Applause.) I ask you to make the same commitment. Together, we can restrain the spending appetite of the federal government, and we can balance the federal budget. (Applause.)  
2007-11	2007	Next, there is the matter of earmarks. These special interest items are often slipped into bills at the last hour -- when not even C-SPAN is watching. (Laughter.) In 2005 alone, the number of earmarks grew to over 13,000 and totaled nearly $18 billion. Even worse, over 90 percent of earmarks never make it to the floor of the House and Senate -- they are dropped into committee reports that are not even part of the bill that arrives on my desk. You didn't vote them into law. I didn't sign them into law. Yet, they're treated as if they have the force of law. The time has come to end this practice. So let us work together to reform the budget process, expose every earmark to the light of day and to a vote in Congress, and cut the number and cost of earmarks at least in half by the end of this session. (Applause.)  
2007-12	2007	And, finally, to keep this economy strong we must take on the challenge of entitlements. Social Security and Medicare and Medicaid are commitments of conscience, and so it is our duty to keep them permanently sound. Yet, we're failing in that duty. And this failure will one day leave our children with three bad options: huge tax increases, huge deficits, or huge and immediate cuts in benefits. Everyone in this chamber knows this to be true -- yet somehow we have not found it in ourselves to act. So let us work together and do it now. With enough good sense and goodwill, you and I can fix Medicare and Medicaid -- and save Social Security. (Applause.)  
2007-13	2007	Spreading opportunity and hope in America also requires public schools that give children the knowledge and character they need in life. Five years ago, we rose above partisan differences to pass the No Child Left Behind Act, preserving local control, raising standards, and holding those schools accountable for results. And because we acted, students are performing better in reading and math, and minority students are closing the achievement gap.  
2007-14	2007	Now the task is to build on the success, without watering down standards, without taking control from local communities, and without backsliding and calling it reform. We can lift student achievement even higher by giving local leaders flexibility to turn around failing schools, and by giving families with children stuck in failing schools the right to choose someplace better. (Applause.) We must increase funds for students who struggle -- and make sure these children get the special help they need. (Applause.) And we can make sure our children are prepared for the jobs of the future and our country is more competitive by strengthening math and science skills. The No Child Left Behind Act has worked for America's children -- and I ask Congress to reauthorize this good law. (Applause.)  
2007-15	2007	A future of hope and opportunity requires that all our citizens have affordable and available health care. (Applause.) When it comes to health care, government has an obligation to care for the elderly, the disabled, and poor children. And we will meet those responsibilities. For all other Americans, private health insurance is the best way to meet their needs. (Applause.) But many Americans cannot afford a health insurance policy.  
2007-16	2007	And so tonight, I propose two new initiatives to help more Americans afford their own insurance. First, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income on payroll tax -- or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of their income. With this reform, more than 100 million men, women, and children who are now covered by employer-provided insurance will benefit from lower tax bills. At the same time, this reform will level the playing field for those who do not get health insurance through their job. For Americans who now purchase health insurance on their own, this proposal would mean a substantial tax savings -- $4,500 for a family of four making $60,000 a year. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making health care affordable for more Americans. (Applause.)  
2007-17	2007	My second proposal is to help the states that are coming up with innovative ways to cover the uninsured. States that make basic private health insurance available to all their citizens should receive federal funds to help them provide this coverage to the poor and the sick. I have asked the Secretary of Health and Human Services to work with Congress to take existing federal funds and use them to create "Affordable Choices" grants. These grants would give our nation's governors more money and more flexibility to get private health insurance to those most in need.  
2007-18	2007	There are many other ways that Congress can help. We need to expand Health Savings Accounts. (Applause.) We need to help small businesses through Association Health Plans. (Applause.) We need to reduce costs and medical errors with better information technology. (Applause.) We will encourage price transparency. And to protect good doctors from junk lawsuits, we passing medical liability reform. (Applause.) In all we do, we must remember that the best health care decisions are made not by government and insurance companies, but by patients and their doctors. (Applause.)  
2007-19	2007	Extending hope and opportunity in our country requires an immigration system worthy of America -- with laws that are fair and borders that are secure. When laws and borders are routinely violated, this harms the interests of our country. To secure our border, we're doubling the size of the Border Patrol, and funding new infrastructure and technology.  
2007-20	2007	Yet even with all these steps, we cannot fully secure the border unless we take pressure off the border -- and that requires a temporary worker program. We should establish a legal and orderly path for foreign workers to enter our country to work on a temporary basis. As a result, they won't have to try to sneak in, and that will leave Border Agents free to chase down drug smugglers and criminals and terrorists. (Applause.) We'll enforce our immigration laws at the work site and give employers the tools to verify the legal status of their workers, so there's no excuse left for violating the law. (Applause.)  
2007-21	2007	We need to uphold the great tradition of the melting pot that welcomes and assimilates new arrivals. (Applause.) We need to resolve the status of the illegal immigrants who are already in our country without animosity and without amnesty. (Applause.) Convictions run deep in this Capitol when it comes to immigration. Let us have a serious, civil, and conclusive debate, so that you can pass, and I can sign, comprehensive immigration reform into law. (Applause.)  
2007-22	2007	Extending hope and opportunity depends on a stable supply of energy that keeps America's economy running and America's environment clean. For too long our nation has been dependent on foreign oil. And this dependence leaves us more vulnerable to hostile regimes, and to terrorists -- who could cause huge disruptions of oil shipments, and raise the price of oil, and do great harm to our economy.  
2007-23	2007	It's in our vital interest to diversify America's energy supply -- the way forward is through technology. We must continue changing the way America generates electric power, by even greater use of clean coal technology, solar and wind energy, and clean, safe nuclear power. (Applause.) We need to press on with battery research for plug-in and hybrid vehicles, and expand the use of clean diesel vehicles and biodiesel fuel. (Applause.) We must continue investing in new methods of producing ethanol -- (applause) -- using everything from wood chips to grasses, to agricultural wastes.  
2007-24	2007	We made a lot of progress, thanks to good policies here in Washington and the strong response of the market. And now even more dramatic advances are within reach. Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years. (Applause.) When we do that we will have cut our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East.  
2007-25	2007	To reach this goal, we must increase the supply of alternative fuels, by setting a mandatory fuels standard to require 35 billion gallons of renewable and alternative fuels in 2017 -- and that is nearly five times the current target. (Applause.) At the same time, we need to reform and modernize fuel economy standards for cars the way we did for light trucks -- and conserve up to 8.5 billion more gallons of gasoline by 2017.  
2007-26	2007	Achieving these ambitious goals will dramatically reduce our dependence on foreign oil, but it's not going to eliminate it. And so as we continue to diversify our fuel supply, we must step up domestic oil production in environmentally sensitive ways. (Applause.) And to further protect America against severe disruptions to our oil supply, I ask Congress to double the current capacity of the Strategic Petroleum Reserve. (Applause.)  
2007-27	2007	America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change. (Applause.)  
2007-28	2007	A future of hope and opportunity requires a fair, impartial system of justice. The lives of our citizens across our nation are affected by the outcome of cases pending in our federal courts. We have a shared obligation to ensure that the federal courts have enough judges to hear those cases and deliver timely rulings. As President, I have a duty to nominate qualified men and women to vacancies on the federal bench. And the United States Senate has a duty, as well, to give those nominees a fair hearing, and a prompt up-or-down vote on the Senate floor. (Applause.)  
2007-29	2007	For all of us in this room, there is no higher responsibility than to protect the people of this country from danger. Five years have come and gone since we saw the scenes and felt the sorrow that the terrorists can cause. We've had time to take stock of our situation. We've added many critical protections to guard the homeland. We know with certainty that the horrors of that September morning were just a glimpse of what the terrorists intend for us -- unless we stop them.  
2007-30	2007	With the distance of time, we find ourselves debating the causes of conflict and the course we have followed. Such debates are essential when a great democracy faces great questions. Yet one question has surely been settled: that to win the war on terror we must take the fight to the enemy. (Applause.)  
2007-31	2007	From the start, America and our allies have protected our people by staying on the offense. The enemy knows that the days of comfortable sanctuary, easy movement, steady financing, and free flowing communications are long over. For the terrorists, life since 9/11 has never been the same.  
2007-32	2007	Our success in this war is often measured by the things that did not happen. We cannot know the full extent of the attacks that we and our allies have prevented, but here is some of what we do know: We stopped an al Qaeda plot to fly a hijacked airplane into the tallest building on the West Coast. We broke up a Southeast Asian terror cell grooming operatives for attacks inside the United States. We uncovered an al Qaeda cell developing anthrax to be used in attacks against America. And just last August, British authorities uncovered a plot to blow up passenger planes bound for America over the Atlantic Ocean. For each life saved, we owe a debt of gratitude to the brave public servants who devote their lives to finding the terrorists and stopping them. (Applause.)  
2007-33	2007	Every success against the terrorists is a reminder of the shoreless ambitions of this enemy. The evil that inspired and rejoiced in 9/11 is still at work in the world. And so long as that's the case, America is still a nation at war.  
2007-34	2007	In the mind of the terrorist, this war began well before September the 11th, and will not end until their radical vision is fulfilled. And these past five years have given us a much clearer view of the nature of this enemy. Al Qaeda and its followers are Sunni extremists, possessed by hatred and commanded by a harsh and narrow ideology. Take almost any principle of civilization, and their goal is the opposite. They preach with threats, instruct with bullets and bombs, and promise paradise for the murder of the innocent.  
2007-35	2007	Our enemies are quite explicit about their intentions. They want to overthrow moderate governments, and establish safe havens from which to plan and carry out new attacks on our country. By killing and terrorizing Americans, they want to force our country to retreat from the world and abandon the cause of liberty. They would then be free to impose their will and spread their totalitarian ideology. Listen to this warning from the late terrorist Zarqawi: "We will sacrifice our blood and bodies to put an end to your dreams, and what is coming is even worse." Osama bin Laden declared: "Death is better than living on this Earth with the unbelievers among us."  
2007-36	2007	These men are not given to idle words, and they are just one camp in the Islamist radical movement. In recent times, it has also become clear that we face an escalating danger from Shia extremists who are just as hostile to America, and are also determined to dominate the Middle East. Many are known to take direction from the regime in Iran, which is funding and arming terrorists like Hezbollah -- a group second only to al Qaeda in the American lives it has taken.  
2007-37	2007	The Shia and Sunni extremists are different faces of the same totalitarian threat. Whatever slogans they chant, when they slaughter the innocent they have the same wicked purposes. They want to kill Americans, kill democracy in the Middle East, and gain the weapons to kill on an even more horrific scale.  
2007-38	2007	In the sixth year since our nation was attacked, I wish I could report to you that the dangers had ended. They have not. And so it remains the policy of this government to use every lawful and proper tool of intelligence, diplomacy, law enforcement, and military action to do our duty, to find these enemies, and to protect the American people. (Applause.)  
2007-39	2007	This war is more than a clash of arms -- it is a decisive ideological struggle, and the security of our nation is in the balance. To prevail, we must remove the conditions that inspire blind hatred, and drove 19 men to get onto airplanes and to come and kill us. What every terrorist fears most is human freedom  
2007-40	2007	-- societies where men and women make their own choices, answer to their own conscience, and live by their hopes instead of their resentments. Free people are not drawn to violent and malignant ideologies -- and most will choose a better way when they're given a chance. So we advance our own security interests by helping moderates and reformers and brave voices for democracy. The great question of our day is whether America will help men and women in the Middle East to build free societies and share in the rights of all humanity. And I say, for the sake of our own security, we must. (Applause.)  
2007-41	2007	In the last two years, we've seen the desire for liberty in the broader Middle East -- and we have been sobered by the enemy's fierce reaction. In 2005, the world watched as the citizens of Lebanon raised the banner of the Cedar Revolution, they drove out the Syrian occupiers and chose new leaders in free elections. In 2005, the people of Afghanistan defied the terrorists and elected a democratic legislature. And in 2005, the Iraqi people held three national elections, choosing a transitional government, adopting the most progressive, democratic constitution in the Arab world, and then electing a government under that constitution. Despite endless threats from the killers in their midst, nearly 12 million Iraqi citizens came out to vote in a show of hope and solidarity that we should never forget. (Applause.)  
2007-42	2007	A thinking enemy watched all of these scenes, adjusted their tactics, and in 2006 they struck back. In Lebanon, assassins took the life of Pierre Gemayel, a prominent participant in the Cedar Revolution. Hezbollah terrorists, with support from Syria and Iran, sowed conflict in the region and are seeking to undermine Lebanon's legitimately elected government. In Afghanistan, Taliban and al Qaeda fighters tried to regain power by regrouping and engaging Afghan and NATO forces. In Iraq, al Qaeda and other Sunni extremists blew up one of the most sacred places in Shia Islam -- the Golden Mosque of Samarra. This atrocity, directed at a Muslim house of prayer, was designed to provoke retaliation from Iraqi Shia -- and it succeeded. Radical Shia elements, some of whom receive support from Iran, formed death squads. The result was a tragic escalation of sectarian rage and reprisal that continues to this day.  
2007-43	2007	This is not the fight we entered in Iraq, but it is the fight we're in. Every one of us wishes this war were over and won. Yet it would not be like us to leave our promises unkept, our friends abandoned, and our own security at risk. (Applause.) Ladies and gentlemen: On this day, at this hour, it is still within our power to shape the outcome of this battle. Let us find our resolve, and turn events toward victory. (Applause.)  
2007-44	2007	We're carrying out a new strategy in Iraq -- a plan that demands more from Iraq's elected government, and gives our forces in Iraq the reinforcements they need to complete their mission. Our goal is a democratic Iraq that upholds the rule of law, respects the rights of its people, provides them security, and is an ally in the war on terror.  
2007-45	2007	In order to make progress toward this goal, the Iraqi government must stop the sectarian violence in its capital. But the Iraqis are not yet ready to do this on their own. So we're deploying reinforcements of more than 20,000 additional soldiers and Marines to Iraq. The vast majority will go to Baghdad, where they will help Iraqi forces to clear and secure neighborhoods, and serve as advisers embedded in Iraqi Army units. With Iraqis in the lead, our forces will help secure the city by chasing down the terrorists, insurgents, and the roaming death squads. And in Anbar Province, where al Qaeda terrorists have gathered and local forces have begun showing a willingness to fight them, we're sending an additional 4,000 United States Marines, with orders to find the terrorists and clear them out. (Applause.) We didn't drive al Qaeda out of their safe haven in Afghanistan only to let them set up a new safe haven in a free Iraq.  
2007-46	2007	The people of Iraq want to live in peace, and now it's time for their government to act. Iraq's leaders know that our commitment is not open-ended. They have promised to deploy more of their own troops to secure Baghdad -- and they must do so. They pledged that they will confront violent radicals of any faction or political party -- and they need to follow through, and lift needless restrictions on Iraqi and coalition forces, so these troops can achieve their mission of bringing security to all of the people of Baghdad. Iraq's leaders have committed themselves to a series of benchmarks -- to achieve reconciliation, to share oil revenues among all of Iraq's citizens, to put the wealth of Iraq into the rebuilding of Iraq, to allow more Iraqis to re-enter their nation's civic life, to hold local elections, and to take responsibility for security in every Iraqi province. But for all of this to happen, Baghdad must be secure. And our plan will help the Iraqi government take back its capital and make good on its commitments.  
2007-47	2007	My fellow citizens, our military commanders and I have carefully weighed the options. We discussed every possible approach. In the end, I chose this course of action because it provides the best chance for success. Many in this chamber understand that America must not fail in Iraq, because you understand that the consequences of failure would be grievous and far-reaching.  
2007-48	2007	If American forces step back before Baghdad is secure, the Iraqi government would be overrun by extremists on all sides. We could expect an epic battle between Shia extremists backed by Iran, and Sunni extremists aided by al Qaeda and supporters of the old regime. A contagion of violence could spill out across the country -- and in time, the entire region could be drawn into the conflict.  
2007-49	2007	For America, this is a nightmare scenario. For the enemy, this is the objective. Chaos is the greatest ally -- their greatest ally in this struggle. And out of chaos in Iraq would emerge an emboldened enemy with new safe havens, new recruits, new resources, and an even greater determination to harm America. To allow this to happen would be to ignore the lessons of September the 11th and invite tragedy. Ladies and gentlemen, nothing is more important at this moment in our history than for America to succeed in the Middle East, to succeed in Iraq and to spare the American people from this danger. (Applause.)  
2007-50	2007	This is where matters stand tonight, in the here and now. I have spoken with many of you in person. I respect you and the arguments you've made. We went into this largely united, in our assumptions and in our convictions. And whatever you voted for, you did not vote for failure. Our country is pursuing a new strategy in Iraq, and I ask you to give it a chance to work. And I ask you to support our troops in the field, and those on their way. (Applause.)  
2007-51	2007	The war on terror we fight today is a generational struggle that will continue long after you and I have turned our duties over to others. And that's why it's important to work together so our nation can see this great effort through. Both parties and both branches should work in close consultation. It's why I propose to establish a special advisory council on the war on terror, made up of leaders in Congress from both political parties. We will share ideas for how to position America to meet every challenge that confronts us. We'll show our enemies abroad that we are united in the goal of victory.  
2007-52	2007	And one of the first steps we can take together is to add to the ranks of our military so that the American Armed Forces are ready for all the challenges ahead. (Applause.) Tonight I ask the Congress to authorize an increase in the size of our active Army and Marine Corps by 92,000 in the next five years. (Applause.) A second task we can take on together is to design and establish a volunteer Civilian Reserve Corps. Such a corps would function much like our military reserve. It would ease the burden on the Armed Forces by allowing us to hire civilians with critical skills to serve on missions abroad when America needs them. It would give people across America who do not wear the uniform a chance to serve in the defining struggle of our time.  
2007-53	2007	Americans can have confidence in the outcome of this struggle because we're not in this struggle alone. We have a diplomatic strategy that is rallying the world to join in the fight against extremism. In Iraq, multinational forces are operating under a mandate from the United Nations. We're working with Jordan and Saudi Arabia and Egypt and the Gulf States to increase support for Iraq's government.  
2007-54	2007	The United Nations has imposed sanctions on Iran, and made it clear that the world will not allow the regime in Tehran to acquire nuclear weapons. (Applause.) With the other members of the Quartet -- the U.N., the European Union, and Russia -- we're pursuing diplomacy to help bring peace to the Holy Land, and pursuing the establishment of a democratic Palestinian state living side-by-side with Israel in peace and security. (Applause.) In Afghanistan, NATO has taken the lead in turning back the Taliban and al Qaeda offensive -- the first time the Alliance has deployed forces outside the North Atlantic area. Together with our partners in China, Japan, Russia, and South Korea, we're pursuing intensive diplomacy to achieve a Korean Peninsula free of nuclear weapons. (Applause.)  
2007-55	2007	We will continue to speak out for the cause of freedom in places like Cuba, Belarus, and Burma [1] -- and continue to awaken the conscience of the world to save the people of Darfur. (Applause.)  
2007-56	2007	American foreign policy is more than a matter of war and diplomacy. Our work in the world is also based on a timeless truth: To whom much is given, much is required. We hear the call to take on the challenges of hunger and poverty and disease -- and that is precisely what America is doing. We must continue to fight HIV/AIDS, especially on the continent of Africa. (Applause.) Because you funded our Emergency Plan for AIDS Relief, the number of people receiving life-saving drugs has grown from 50,000 to more than 800,000 in three short years. I ask you to continue funding our efforts to fight HIV/AIDS. I ask you to provide $1.2 billion over five years so we can combat malaria in 15 African countries. (Applause.)  
2007-57	2007	I ask that you fund the Millennium Challenge Account, so that American aid reaches the people who need it, in nations where democracy is on the rise and corruption is in retreat. And let us continue to support the expanded trade and debt relief that are the best hope for lifting lives and eliminating poverty. (Applause.)  
2007-58	2007	When America serves others in this way, we show the strength and generosity of our country. These deeds reflect the character of our people. The greatest strength we have is the heroic kindness, courage, and self-sacrifice of the American people. You see this spirit often if you know where to look -- and tonight we need only look above to the gallery.  
2007-59	2007	Dikembe Mutombo grew up in Africa, amid great poverty and disease. He came to Georgetown University on a scholarship to study medicine -- but Coach John Thompson got a look at Dikembe and had a different idea. (Laughter.) Dikembe became a star in the NBA, and a citizen of the United States. But he never forgot the land of his birth, or the duty to share his blessings with others. He built a brand new hospital in his old hometown. A friend has said of this good-hearted man: "Mutombo believes that God has given him this opportunity to do great things." And we are proud to call this son of the Congo [2] a citizen of the United States of America. (Applause.)  
2007-60	2007	After her daughter was born, Julie Aigner-Clark searched for ways to share her love of music and art with her child. So she borrowed some equipment, and began filming children's videos in her basement. The Baby Einstein Company was born, and in just five years her business grew to more than $20 million in sales. In November 2001, Julie sold Baby Einstein to the Walt Disney Company, and with her help Baby Einstein has grown into a $200 million business. Julie represents the great enterprising spirit of America. And she is using her success to help others -- producing child safety videos with John Walsh of the National Center for Missing and Exploited Children. Julie says of her new project: "I believe it's the most important thing that I have ever done. I believe that children have the right to live in a world that is safe." And so tonight, we are pleased to welcome this talented business entrepreneur and generous social entrepreneur -- Julie Aigner-Clark. (Applause.)  
2007-61	2007	Three weeks ago, Wesley Autrey was waiting at a Harlem subway station with his two little girls, when he saw a man fall into the path of a train. With seconds to act, Wesley jumped onto the tracks, pulled the man into the space between the rails, and held him as the train passed right above their heads. He insists he's not a hero. He says: "We got guys and girls overseas dying for us to have our freedoms. We have got to show each other some love." There is something wonderful about a country that produces a brave and humble man like Wesley Autrey. (Applause.)  
2007-62	2007	Tommy Rieman was a teenager pumping gas in Independence, Kentucky, when he enlisted in the United States Army. In December 2003, he was on a reconnaissance mission in Iraq when his team came under heavy enemy fire. From his Humvee, Sergeant Rieman returned fire; he used his body as a shield to protect his gunner. He was shot in the chest and arm, and received shrapnel wounds to his legs -- yet he refused medical attention, and stayed in the fight. He helped to repel a second attack, firing grenades at the enemy's position. For his exceptional courage, Sergeant Rieman was awarded the Silver Star. And like so many other Americans who have volunteered to defend us, he has earned the respect and the gratitude of our entire country. (Applause.)  
2007-63	2007	In such courage and compassion, ladies and gentlemen, we see the spirit and character of America -- and these qualities are not in short supply. This is a decent and honorable country -- and resilient, too. We've been through a lot together. We've met challenges and faced dangers, and we know that more lie ahead. Yet we can go forward with confidence -- because the State of our Union is strong, our cause in the world is right, and tonight that cause goes on. God bless. (Applause.)  
2008-1	2008	Madam Speaker, Vice President Cheney, members of Congress, distinguished guests, and fellow citizens: Seven years have passed since I first stood before you at this rostrum. In that time, our country has been tested in ways none of us could have imagined. We faced hard decisions about peace and war, rising competition in the world economy, and the health and welfare of our citizens. These issues call for vigorous debate, and I think it's fair to say we've answered the call. Yet history will record that amid our differences, we acted with purpose. And together, we showed the world the power and resilience of American self-government.  
2008-2	2008	All of us were sent to Washington to carry out the people's business. That is the purpose of this body. It is the meaning of our oath. It remains our charge to keep.  
2008-3	2008	The actions of the 110th Congress will affect the security and prosperity of our nation long after this session has ended. In this election year, let us show our fellow Americans that we recognize our responsibilities and are determined to meet them. Let us show them that Republicans and Democrats can compete for votes and cooperate for results at the same time.  
2008-4	2008	From expanding opportunity to protecting our country, we've made good progress. Yet we have unfinished business before us, and the American people expect us to get it done.  
2008-5	2008	In the work ahead, we must be guided by the philosophy that made our nation great. As Americans, we believe in the power of individuals to determine their destiny and shape the course of history. We believe that the most reliable guide for our country is the collective wisdom of ordinary citizens. And so in all we do, we must trust in the ability of free peoples to make wise decisions, and empower them to improve their lives for their futures.  
2008-6	2008	To build a prosperous future, we must trust people with their own money and empower them to grow our economy. As we meet tonight, our economy is undergoing a period of uncertainty. America has added jobs for a record 52 straight months, but jobs are now growing at a slower pace. Wages are up, but so are prices for food and gas. Exports are rising, but the housing market has declined. At kitchen tables across our country, there is a concern about our economic future.  
2008-7	2008	In the long run, Americans can be confident about our economic growth. But in the short run, we can all see that that growth is slowing. So last week, my administration reached agreement with Speaker Pelosi and Republican Leader Boehner on a robust growth package that includes tax relief for individuals and families and incentives for business investment. The temptation will be to load up the bill. That would delay it or derail it, and neither option is acceptable.  This is a good agreement that will keep our economy growing and our people working. And this Congress must pass it as soon as possible.  
2008-8	2008	We have other work to do on taxes. Unless Congress acts, most of the tax relief we've delivered over the past seven years will be taken away. Some in Washington argue that letting tax relief expire is not a tax increase. Try explaining that to 116 million American taxpayers who would see their taxes rise by an average of $1,800. Others have said they would personally be happy to pay higher taxes. I welcome their enthusiasm. I'm pleased to report that the IRS accepts both checks and money orders. (Laughter and applause.)  
2008-9	2008	Most Americans think their taxes are high enough. With all the other pressures on their finances, American families should not have to worry about their federal government taking a bigger bite out of their paychecks. There's only one way to eliminate this uncertainty: Make the tax relief permanent.  And members of Congress should know: If any bill raises taxes reaches my desk, I will veto it.  
2008-10	2008	Just as we trust Americans with their own money, we need to earn their trust by spending their tax dollars wisely. Next week, I'll send you a budget that terminates or substantially reduces 151 wasteful or bloated programs, totaling more than $18 billion. The budget that I will submit will keep America on track for a surplus in 2012. American families have to balance their budgets; so should their government.  
2008-11	2008	The people's trust in their government is undermined by congressional earmarks -- special interest projects that are often snuck in at the last minute, without discussion or debate. Last year, I asked you to voluntarily cut the number and cost of earmarks in half. I also asked you to stop slipping earmarks into committee reports that never even come to a vote. Unfortunately, neither goal was met. So this time, if you send me an appropriations bill that does not cut the number and cost of earmarks in half, I'll send it back to you with my veto.  
2008-12	2008	And tomorrow, I will issue an executive order that directs federal agencies to ignore any future earmark that is not voted on by Congress. If these items are truly worth funding, Congress should debate them in the open and hold a public vote.  
2008-13	2008	Our shared responsibilities extend beyond matters of taxes and spending. On housing, we must trust Americans with the responsibility of homeownership and empower them to weather turbulent times in the housing market. My administration brought together the HOPE NOW alliance, which is helping many struggling homeowners avoid foreclosure. And Congress can help even more. Tonight I ask you to pass legislation to reform Fannie Mae and Freddie Mac, modernize the Federal Housing Administration, and allow state housing agencies to issue tax-free bonds to help homeowners refinance their mortgages.  These are difficult times for many American families, and by taking these steps, we can help more of them keep their homes.  
2008-14	2008	To build a future of quality health care, we must trust patients and doctors to make medical decisions and empower them with better information and better options. We share a common goal: making health care more affordable and accessible for all Americans.  The best way to achieve that goal is by expanding consumer choice, not government control.  So I have proposed ending the bias in the tax code against those who do not get their health insurance through their employer. This one reform would put private coverage within reach for millions, and I call on the Congress to pass it this year.  
2008-15	2008	The Congress must also expand health savings accounts, create Association Health Plans for small businesses, promote health information technology, and confront the epidemic of junk medical lawsuits.  With all these steps, we will help ensure that decisions about your medical care are made in the privacy of your doctor's office -- not in the halls of Congress.  
2008-16	2008	On education, we must trust students to learn if given the chance, and empower parents to demand results from our schools. In neighborhoods across our country, there are boys and girls with dreams -- and a decent education is their only hope of achieving them.  
2008-17	2008	Six years ago, we came together to pass the No Child Left Behind Act, and today no one can deny its results. Last year, fourth and eighth graders achieved the highest math scores on record. Reading scores are on the rise. African American and Hispanic students posted all-time highs.  Now we must work together to increase accountability, add flexibility for states and districts, reduce the number of high school dropouts, provide extra help for struggling schools.  
2008-18	2008	Members of Congress: The No Child Left Behind Act is a bipartisan achievement. It is succeeding. And we owe it to America's children, their parents, and their teachers to strengthen this good law.  
2008-19	2008	We must also do more to help children when their schools do not measure up. Thanks to the D.C. Opportunity Scholarships you approved, more than 2,600 of the poorest children in our Nation's Capital have found new hope at a faith-based or other non-public school. Sadly, these schools are disappearing at an alarming rate in many of America's inner cities. So I will convene a White House summit aimed at strengthening these lifelines of learning. And to open the doors of these schools to more children, I ask you to support a new $300 million program called Pell Grants for Kids. We have seen how Pell Grants help low-income college students realize their full potential. Together, we've expanded the size and reach of these grants. Now let us apply that same spirit to help liberate poor children trapped in failing public schools.  
2008-20	2008	On trade, we must trust American workers to compete with anyone in the world and empower them by opening up new markets overseas. Today, our economic growth increasingly depends on our ability to sell American goods and crops and services all over the world. So we're working to break down barriers to trade and investment wherever we can. We're working for a successful Doha Round of trade talks, and we must complete a good agreement this year. At the same time, we're pursuing opportunities to open up new markets by passing free trade agreements.  
2008-21	2008	I thank the Congress for approving a good agreement with Peru. And now I ask you to approve agreements with Colombia and Panama and South Korea.  Many products from these nations now enter America duty-free, yet many of our products face steep tariffs in their markets. These agreements will level the playing field. They will give us better access to nearly 100 million customers. They will support good jobs for the finest workers in the world: those whose products say "Made in the USA."  
2008-22	2008	These agreements also promote America's strategic interests. The first agreement that will come before you is with Colombia, a friend of America that is confronting violence and terror, and fighting drug traffickers. If we fail to pass this agreement, we will embolden the purveyors of false populism in our hemisphere. So we must come together, pass this agreement, and show our neighbors in the region that democracy leads to a better life.  
2008-23	2008	Trade brings better jobs and better choices and better prices. Yet for some Americans, trade can mean losing a job, and the federal government has a responsibility to help.  I ask Congress to reauthorize and reform trade adjustment assistance, so we can help these displaced workers learn new skills and find new jobs.  
2008-24	2008	To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology.  Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions.  Let us increase the use of renewable power and emissions-free nuclear power.  Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future.  Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases.  
2008-25	2008	This agreement will be effective only if it includes commitments by every major economy and gives none a free ride.  The United States is committed to strengthening our energy security and confronting global climate change. And the best way to meet these goals is for America to continue leading the way toward the development of cleaner and more energy-efficient technology.  
2008-26	2008	To keep America competitive into the future, we must trust in the skill of our scientists and engineers and empower them to pursue the breakthroughs of tomorrow. Last year, Congress passed legislation supporting the American Competitiveness Initiative, but never followed through with the funding. This funding is essential to keeping our scientific edge. So I ask Congress to double federal support for critical basic research in the physical sciences and ensure America remains the most dynamic nation on Earth.  
2008-27	2008	On matters of life and science, we must trust in the innovative spirit of medical researchers and empower them to discover new treatments while respecting moral boundaries. In November, we witnessed a landmark achievement when scientists discovered a way to reprogram adult skin cells to act like embryonic stem cells. This breakthrough has the potential to move us beyond the divisive debates of the past by extending the frontiers of medicine without the destruction of human life.  
2008-28	2008	So we're expanding funding for this type of ethical medical research. And as we explore promising avenues of research, we must also ensure that all life is treated with the dignity it deserves. And so I call on Congress to pass legislation that bans unethical practices such as the buying, selling, patenting, or cloning of human life.  
2008-29	2008	On matters of justice, we must trust in the wisdom of our founders and empower judges who understand that the Constitution means what it says.  I've submitted judicial nominees who will rule by the letter of the law, not the whim of the gavel. Many of these nominees are being unfairly delayed. They are worthy of confirmation, and the Senate should give each of them a prompt up-or-down vote.  
2008-30	2008	In communities across our land, we must trust in the good heart of the American people and empower them to serve their neighbors in need. Over the past seven years, more of our fellow citizens have discovered that the pursuit of happiness leads to the path of service. Americans have volunteered in record numbers. Charitable donations are higher than ever. Faith-based groups are bringing hope to pockets of despair, with newfound support from the federal government. And to help guarantee equal treatment of faith-based organizations when they compete for federal funds, I ask you to permanently extend Charitable Choice.  
2008-31	2008	Tonight the armies of compassion continue the march to a new day in the Gulf Coast. America honors the strength and resilience of the people of this region. We reaffirm our pledge to help them build stronger and better than before. And tonight I'm pleased to announce that in April we will host this year's North American Summit of Canada, Mexico, and the United States in the great city of New Orleans.  
2008-32	2008	There are two other pressing challenges that I've raised repeatedly before this body, and that this body has failed to address: entitlement spending and immigration. Every member in this chamber knows that spending on entitlement programs like Social Security, Medicare, and Medicaid is growing faster than we can afford. We all know the painful choices ahead if America stays on this path: massive tax increases, sudden and drastic cuts in benefits, or crippling deficits. I've laid out proposals to reform these programs. Now I ask members of Congress to offer your proposals and come up with a bipartisan solution to save these vital programs for our children and our grandchildren.  
2008-33	2008	The other pressing challenge is immigration. America needs to secure our borders -- and with your help, my administration is taking steps to do so. We're increasing worksite enforcement, deploying fences and advanced technologies to stop illegal crossings. We've effectively ended the policy of "catch and release" at the border, and by the end of this year, we will have doubled the number of border patrol agents. Yet we also need to acknowledge that we will never fully secure our border until we create a lawful way for foreign workers to come here and support our economy.  This will take pressure off the border and allow law enforcement to concentrate on those who mean us harm. We must also find a sensible and humane way to deal with people here illegally. Illegal immigration is complicated, but it can be resolved. And it must be resolved in a way that upholds both our laws and our highest ideals.  
2008-34	2008	This is the business of our nation here at home. Yet building a prosperous future for our citizens also depends on confronting enemies abroad and advancing liberty in troubled regions of the world.  
2008-35	2008	Our foreign policy is based on a clear premise: We trust that people, when given the chance, will choose a future of freedom and peace. In the last seven years, we have witnessed stirring moments in the history of liberty. We've seen citizens in Georgia and Ukraine stand up for their right to free and fair elections. We've seen people in Lebanon take to the streets to demand their independence. We've seen Afghans emerge from the tyranny of the Taliban and choose a new president and a new parliament. We've seen jubilant Iraqis holding up ink-stained fingers and celebrating their freedom. These images of liberty have inspired us.  
2008-36	2008	In the past seven years, we've also seen images that have sobered us. We've watched throngs of mourners in Lebanon and Pakistan carrying the caskets of beloved leaders taken by the assassin's hand. We've seen wedding guests in blood-soaked finery staggering from a hotel in Jordan, Afghans and Iraqis blown up in mosques and markets, and trains in London and Madrid ripped apart by bombs. On a clear September day, we saw thousands of our fellow citizens taken from us in an instant. These horrific images serve as a grim reminder: The advance of liberty is opposed by terrorists and extremists -- evil men who despise freedom, despise America, and aim to subject millions to their violent rule.  
2008-37	2008	Since 9/11, we have taken the fight to these terrorists and extremists. We will stay on the offense, we will keep up the pressure, and we will deliver justice to our enemies.  
2008-38	2008	We are engaged in the defining ideological struggle of the 21st century. The terrorists oppose every principle of humanity and decency that we hold dear. Yet in this war on terror, there is one thing we and our enemies agree on: In the long run, men and women who are free to determine their own destinies will reject terror and refuse to live in tyranny. And that is why the terrorists are fighting to deny this choice to the people in Lebanon, Iraq, Afghanistan, Pakistan, and the Palestinian Territories. And that is why, for the security of America and the peace of the world, we are spreading the hope of freedom.  
2008-39	2008	In Afghanistan, America, our 25 NATO allies, and 15 partner nations are helping the Afghan people defend their freedom and rebuild their country. Thanks to the courage of these military and civilian personnel, a nation that was once a safe haven for al Qaeda is now a young democracy where boys and girls are going to school, new roads and hospitals are being built, and people are looking to the future with new hope. These successes must continue, so we're adding 3,200 Marines to our forces in Afghanistan, where they will fight the terrorists and train the Afghan Army and police. Defeating the Taliban and al Qaeda is critical to our security, and I thank the Congress for supporting America's vital mission in Afghanistan.  
2008-40	2008	In Iraq, the terrorists and extremists are fighting to deny a proud people their liberty, and fighting to establish safe havens for attacks across the world. One year ago, our enemies were succeeding in their efforts to plunge Iraq into chaos. So we reviewed our strategy and changed course. We launched a surge of American forces into Iraq. We gave our troops a new mission: Work with the Iraqi forces to protect the Iraqi people, pursue the enemy in its strongholds, and deny the terrorists sanctuary anywhere in the country.  
2008-41	2008	The Iraqi people quickly realized that something dramatic had happened. Those who had worried that America was preparing to abandon them instead saw tens of thousands of American forces flowing into their country. They saw our forces moving into neighborhoods, clearing out the terrorists, and staying behind to ensure the enemy did not return. And they saw our troops, along with Provincial Reconstruction Teams that include Foreign Service officers and other skilled public servants, coming in to ensure that improved security was followed by improvements in daily life. Our military and civilians in Iraq are performing with courage and distinction, and they have the gratitude of our whole nation.  
2008-42	2008	The Iraqis launched a surge of their own. In the fall of 2006, Sunni tribal leaders grew tired of al Qaeda's brutality and started a popular uprising called "The Anbar Awakening." Over the past year, similar movements have spread across the country. And today, the grassroots surge includes more than 80,000 Iraqi citizens who are fighting the terrorists. The government in Baghdad has stepped forward, as well -- adding more than 100,000 new Iraqi soldiers and police during the past year.  
2008-43	2008	While the enemy is still dangerous and more work remains, the American and Iraqi surges have achieved results few of us could have imagined just one year ago.  When we met last year, many said that containing the violence was impossible. A year later, high profile terrorist attacks are down, civilian deaths are down, sectarian killings are down.  
2008-44	2008	When we met last year, militia extremists -- some armed and trained by Iran -- were wreaking havoc in large areas of Iraq. A year later, coalition and Iraqi forces have killed or captured hundreds of militia fighters. And Iraqis of all backgrounds increasingly realize that defeating these militia fighters is critical to the future of their country.  
2008-45	2008	When we met last year, al Qaeda had sanctuaries in many areas of Iraq, and their leaders had just offered American forces safe passage out of the country. Today, it is al Qaeda that is searching for safe passage. They have been driven from many of the strongholds they once held, and over the past year, we've captured or killed thousands of extremists in Iraq, including hundreds of key al Qaeda leaders and operatives.  
2008-46	2008	Last month, Osama bin Laden released a tape in which he railed against Iraqi tribal leaders who have turned on al Qaeda and admitted that coalition forces are growing stronger in Iraq. Ladies and gentlemen, some may deny the surge is working, but among the terrorists there is no doubt. Al Qaeda is on the run in Iraq, and this enemy will be defeated.  
2008-47	2008	When we met last year, our troop levels in Iraq were on the rise. Today, because of the progress just described, we are implementing a policy of "return on success," and the surge forces we sent to Iraq are beginning to come home.  
2008-48	2008	This progress is a credit to the valor of our troops and the brilliance of their commanders. This evening, I want to speak directly to our men and women on the front lines. Soldiers and sailors, airmen, Marines, and Coast Guardsmen: In the past year, you have done everything we've asked of you, and more. Our nation is grateful for your courage. We are proud of your accomplishments. And tonight in this hallowed chamber, with the American people as our witness, we make you a solemn pledge: In the fight ahead, you will have all you need to protect our nation.  And I ask Congress to meet its responsibilities to these brave men and women by fully funding our troops.  
2008-49	2008	Our enemies in Iraq have been hit hard. They are not yet defeated, and we can still expect tough fighting ahead. Our objective in the coming year is to sustain and build on the gains we made in 2007, while transitioning to the next phase of our strategy. American troops are shifting from leading operations, to partnering with Iraqi forces, and, eventually, to a protective overwatch mission. As part of this transition, one Army brigade combat team and one Marine Expeditionary Unit have already come home and will not be replaced. In the coming months, four additional brigades and two Marine battalions will follow suit. Taken together, this means more than 20,000 of our troops are coming home.  
2008-50	2008	Any further drawdown of U.S. troops will be based on conditions in Iraq and the recommendations of our commanders. General Petraeus has warned that too fast a drawdown could result in the "disintegration of the Iraqi security forces, al Qaeda-Iraq regaining lost ground, [and] a marked increase in violence." Members of Congress: Having come so far and achieved so much, we must not allow this to happen.  
2008-51	2008	In the coming year, we will work with Iraqi leaders as they build on the progress they're making toward political reconciliation. At the local level, Sunnis, Shia, and Kurds are beginning to come together to reclaim their communities and rebuild their lives. Progress in the provinces must be matched by progress in Baghdad.  We're seeing some encouraging signs. The national government is sharing oil revenues with the provinces. The parliament recently passed both a pension law and de-Baathification reform. They're now debating a provincial powers law. The Iraqis still have a distance to travel. But after decades of dictatorship and the pain of sectarian violence, reconciliation is taking place -- and the Iraqi people are taking control of their future.  
2008-52	2008	The mission in Iraq has been difficult and trying for our nation. But it is in the vital interest of the United States that we succeed. A free Iraq will deny al Qaeda a safe haven. A free Iraq will show millions across the Middle East that a future of liberty is possible. A free Iraq will be a friend of America, a partner in fighting terror, and a source of stability in a dangerous part of the world.  
2008-53	2008	By contrast, a failed Iraq would embolden the extremists, strengthen Iran, and give terrorists a base from which to launch new attacks on our friends, our allies, and our homeland. The enemy has made its intentions clear. At a time when the momentum seemed to favor them, al Qaida's top commander in Iraq declared that they will not rest until they have attacked us here in Washington. My fellow Americans: We will not rest either. We will not rest until this enemy has been defeated.  We must do the difficult work today, so that years from now people will look back and say that this generation rose to the moment, prevailed in a tough fight, and left behind a more hopeful region and a safer America.  
2008-54	2008	We're also standing against the forces of extremism in the Holy Land, where we have new cause for hope. Palestinians have elected a president who recognizes that confronting terror is essential to achieving a state where his people can live in dignity and at peace with Israel. Israelis have leaders who recognize that a peaceful, democratic Palestinian state will be a source of lasting security. This month in Ramallah and Jerusalem, I assured leaders from both sides that America will do, and I will do, everything we can to help them achieve a peace agreement that defines a Palestinian state by the end of this year. The time has come for a Holy Land where a democratic Israel and a democratic Palestine live side-by-side in peace.  
2008-55	2008	We're also standing against the forces of extremism embodied by the regime in Tehran. Iran's rulers oppress a good and talented people. And wherever freedom advances in the Middle East, it seems the Iranian regime is there to oppose it. Iran is funding and training militia groups in Iraq, supporting Hezbollah terrorists in Lebanon, and backing Hamas' efforts to undermine peace in the Holy Land. Tehran is also developing ballistic missiles of increasing range, and continues to develop its capability to enrich uranium, which could be used to create a nuclear weapon.  
2008-56	2008	Our message to the people of Iran is clear: We have no quarrel with you. We respect your traditions and your history. We look forward to the day when you have your freedom. Our message to the leaders of Iran is also clear: Verifiably suspend your nuclear enrichment, so negotiations can begin. And to rejoin the community of nations, come clean about your nuclear intentions and past actions, stop your oppression at home, cease your support for terror abroad. But above all, know this: America will confront those who threaten our troops. We will stand by our allies, and we will defend our vital interests in the Persian Gulf.  
2008-57	2008	On the home front, we will continue to take every lawful and effective measure to protect our country. This is our most solemn duty. We are grateful that there has not been another attack on our soil since 9/11. This is not for the lack of desire or effort on the part of the enemy. In the past six years, we've stopped numerous attacks, including a plot to fly a plane into the tallest building in Los Angeles and another to blow up passenger jets bound for America over the Atlantic. Dedicated men and women in our government toil day and night to stop the terrorists from carrying out their plans. These good citizens are saving American lives, and everyone in this chamber owes them our thanks.  
2008-58	2008	And we owe them something more: We owe them the tools they need to keep our people safe. And one of the most important tools we can give them is the ability to monitor terrorist communications. To protect America, we need to know who the terrorists are talking to, what they are saying, and what they're planning. Last year, Congress passed legislation to help us do that. Unfortunately, Congress set the legislation to expire on February the 1st. That means if you don't act by Friday, our ability to track terrorist threats would be weakened and our citizens will be in greater danger. Congress must ensure the flow of vital intelligence is not disrupted. Congress must pass liability protection for companies believed to have assisted in the efforts to defend America. We've had ample time for debate. The time to act is now.  
2008-59	2008	Protecting our nation from the dangers of a new century requires more than good intelligence and a strong military. It also requires changing the conditions that breed resentment and allow extremists to prey on despair. So America is using its influence to build a freer, more hopeful, and more compassionate world. This is a reflection of our national interest; it is the calling of our conscience.  
2008-60	2008	America opposes genocide in Sudan.  We support freedom in countries from Cuba and Zimbabwe to Belarus and Burma.  
2008-61	2008	America is leading the fight against global poverty, with strong education initiatives and humanitarian assistance. We've also changed the way we deliver aid by launching the Millennium Challenge Account. This program strengthens democracy, transparency, and the rule of law in developing nations, and I ask you to fully fund this important initiative.  
2008-62	2008	America is leading the fight against global hunger. Today, more than half the world's food aid comes from the United States. And tonight, I ask Congress to support an innovative proposal to provide food assistance by purchasing crops directly from farmers in the developing world, so we can build up local agriculture and help break the cycle of famine.  
2008-63	2008	America is leading the fight against disease. With your help, we're working to cut by half the number of malaria-related deaths in 15 African nations. And our Emergency Plan for AIDS Relief is treating 1.4 million people. We can bring healing and hope to many more. So I ask you to maintain the principles that have changed behavior and made this program a success. And I call on you to double our initial commitment to fighting HIV/AIDS by approving an additional $30 billion over the next five years.  
2008-64	2008	America is a force for hope in the world because we are a compassionate people, and some of the most compassionate Americans are those who have stepped forward to protect us. We must keep faith with all who have risked life and limb so that we might live in freedom and peace. Over the past seven years, we've increased funding for veterans by more than 95 percent. And as we increase funding -- (applause.) And as increase funding we must also reform our veterans system to meet the needs of a new war and a new generation.  I call on the Congress to enact the reforms recommended by Senator Bob Dole and Secretary Donna Shalala, so we can improve the system of care for our wounded warriors and help them build lives of hope and promise and dignity.  
2008-65	2008	Our military families also sacrifice for America. They endure sleepless nights and the daily struggle of providing for children while a loved one is serving far from home. We have a responsibility to provide for them. So I ask you to join me in expanding their access to child care, creating new hiring preferences for military spouses across the federal government, and allowing our troops to transfer their unused education benefits to their spouses or children.  Our military families serve our nation, they inspire our nation, and tonight our nation honors them.  
2008-66	2008	The strength -- the secret of our strength, the miracle of America, is that our greatness lies not in our government, but in the spirit and determination of our people.  When the Federal Convention met in Philadelphia in 1787, our nation was bound by the Articles of Confederation, which began with the words, "We the undersigned delegates." When Gouverneur Morris was asked to draft a preamble to our new Constitution, he offered an important revision and opened with words that changed the course of our nation and the history of the world: "We the people."  
2008-67	2008	By trusting the people, our Founders wagered that a great and noble nation could be built on the liberty that resides in the hearts of all men and women. By trusting the people, succeeding generations transformed our fragile young democracy into the most powerful nation on Earth and a beacon of hope for millions. And so long as we continue to trust the people, our nation will prosper, our liberty will be secure, and the state of our Union will remain strong.  
2008-68	2008	So tonight, with confidence in freedom's power, and trust in the people, let us set forth to do their business. God bless America.  
2009-1	2009	Madame Speaker, Mr. Vice President, Members of Congress, and the First Lady of the United States:  
2009-2	2009	I've come here tonight not only to address the distinguished men and women in this great chamber, but to speak frankly and directly to the men and women who sent us here.  
2009-3	2009	I know that for many Americans watching right now, the state of our economy is a concern that rises above all others. And rightly so. If you haven't been personally affected by this recession, you probably know someone who has - a friend; a neighbor; a member of your family. You don't need to hear another list of statistics to know that our economy is in crisis, because you live it every day. It's the worry you wake up with and the source of sleepless nights. It's the job you thought you'd retire from but now have lost; the business you built your dreams upon that's now hanging by a thread; the college acceptance letter your child had to put back in the envelope. The impact of this recession is real, and it is everywhere.  
2009-4	2009	But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this:  
2009-5	2009	We will rebuild, we will recover, and the United States of America will emerge stronger than before.  
2009-6	2009	The weight of this crisis will not determine the destiny of this nation. The answers to our problems don't lie beyond our reach. They exist in our laboratories and universities; in our fields and our factories; in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth. Those qualities that have made America the greatest force of progress and prosperity in human history we still possess in ample measure. What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more.  
2009-7	2009	Now, if we're honest with ourselves, we'll admit that for too long, we have not always met these responsibilities -- as a government or as a people. I say this not to lay blame or look backwards, but because it is only by understanding how we arrived at this moment that we'll be able to lift ourselves out of this predicament.  
2009-8	2009	The fact is, our economy did not fall into decline overnight. Nor did all of our problems begin when the housing market collapsed or the stock market sank. We have known for decades that our survival depends on finding new sources of energy. Yet we import more oil today than ever before. The cost of health care eats up more and more of our savings each year, yet we keep delaying reform. Our children will compete for jobs in a global economy that too many of our schools do not prepare them for. And though all these challenges went unsolved, we still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before.  
2009-9	2009	In other words, we have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election. A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future. Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day.  
2009-10	2009	Well that day of reckoning has arrived, and the time to take charge of our future is here.  
2009-11	2009	Now is the time to act boldly and wisely -- to not only revive this economy, but to build a new foundation for lasting prosperity. Now is the time to jumpstart job creation, re-start lending, and invest in areas like energy, health care, and education that will grow our economy, even as we make hard choices to bring our deficit down. That is what my economic agenda is designed to do, and that's what I'd like to talk to you about tonight.  
2009-12	2009	It's an agenda that begins with jobs.  
2009-13	2009	As soon as I took office, I asked this Congress to send me a recovery plan by President's Day that would put people back to work and put money in their pockets. Not because I believe in bigger government -- I don't. Not because I'm not mindful of the massive debt we've inherited -- I am. I called for action because the failure to do so would have cost more jobs and caused more hardships. In fact, a failure to act would have worsened our long-term deficit by assuring weak economic growth for years. That's why I pushed for quick action. And tonight, I am grateful that this Congress delivered, and pleased to say that the American Recovery and Reinvestment Act is now law.  
2009-14	2009	Over the next two years, this plan will save or create 3.5 million jobs.More than 90% of these jobs will be in the private sector -- jobs rebuilding our roads and bridges; constructing wind turbines and solar panels; laying broadband and expanding mass transit.  
2009-15	2009	Because of this plan, there are teachers who can now keep their jobs and educate our kids. Health care professionals can continue caring for our sick. There are 57 police officers who are still on the streets of Minneapolis tonight because this plan prevented the layoffs their department was about to make.  
2009-16	2009	Because of this plan, 95% of the working households in America will receive a tax cut -- a tax cut that you will see in your paychecks beginning on April 1st.  
2009-17	2009	Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit for all four years of college. And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits and continued health care coverage to help them weather this storm.  
2009-18	2009	I know there are some in this chamber and watching at home who are skeptical of whether this plan will work. I understand that skepticism. Here in Washington, we've all seen how quickly good intentions can turn into broken promises and wasteful spending. And with a plan of this scale comes enormous responsibility to get it right.  
2009-19	2009	That is why I have asked Vice President Biden to lead a tough, unprecedented oversight effort -- because nobody messes with Joe. I have told each member of my Cabinet as well as mayors and governors across the country that they will be held accountable by me and the American people for every dollar they spend. I have appointed a proven and aggressive Inspector General to ferret out any and all cases of waste and fraud. And we have created a new website called recovery.gov so that every American can find out how and where their money is being spent.  
2009-20	2009	So the recovery plan we passed is the first step in getting our economy back on track. But it is just the first step. Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system.  
2009-21	2009	I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family's well-being. You should also know that the money you've deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern.  
2009-22	2009	The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins.  
2009-23	2009	You see, the flow of credit is the lifeblood of our economy. The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.  
2009-24	2009	But credit has stopped flowing the way it should. Too many bad loans from the housing crisis have made their way onto the books of too many banks. With so much debt and so little confidence, these banks are now fearful of lending out any more money to households, to businesses, or to each other. When there is no lending, families can't afford to buy homes or cars. So businesses are forced to make layoffs. Our economy suffers even more, and credit dries up even further.  
2009-25	2009	That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start lending.  
2009-26	2009	We will do so in several ways. First, we are creating a new lending fund that represents the largest effort ever to help provide auto loans, college loans, and small business loans to the consumers and entrepreneurs who keep this economy running.  
2009-27	2009	Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages. It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values - Americans who will now be able to take advantage of the lower interest rates that this plan has already helped bring about. In fact, the average family who re-finances today can save nearly $2000 per year on their mortgage.  
2009-28	2009	Third, we will act with the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money to lend even in more difficult times. And when we learn that a major bank has serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.  
2009-29	2009	I understand that on any given day, Wall Street may be more comforted by an approach that gives banks bailouts with no strings attached, and that holds nobody accountable for their reckless decisions. But such an approach won't solve the problem. And our goal is to quicken the day when we re-start lending to the American people and American business and end this crisis once and for all.  
2009-30	2009	I intend to hold these banks fully accountable for the assistance they receive, and this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer. This time, CEOs won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over.  
2009-31	2009	Still, this plan will require significant resources from the federal government -- and yes, probably more than we've already set aside. But while the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade. That would be worse for our deficit, worse for business, worse for you, and worse for the next generation. And I refuse to let that happen.  
2009-32	2009	I understand that when the last administration asked this Congress to provide assistance for struggling banks, Democrats and Republicans alike were infuriated by the mismanagement and results that followed. So were the American taxpayers. So was I.  
2009-33	2009	So I know how unpopular it is to be seen as helping banks right now, especially when everyone is suffering in part from their bad decisions. I promise you - I get it.  
2009-34	2009	But I also know that in a time of crisis, we cannot afford to govern out of anger, or yield to the politics of the moment. My job -- our job -- is to solve the problem. Our job is to govern with a sense of responsibility. I will not spend a single penny for the purpose of rewarding a single Wall Street executive, but I will do whatever it takes to help the small business that can't pay its workers or the family that has saved and still can't get a mortgage.  
2009-35	2009	That's what this is about. It's not about helping banks -- it's about helping people. Because when credit is available again, that young family can finally buy a new home. And then some company will hire workers to build it. And then those workers will have money to spend, and if they can get a loan too, maybe they'll finally buy that car, or open their own business. Investors will return to the market, and American families will see their retirement secured once more. Slowly, but surely, confidence will return, and our economy will recover.  
2009-36	2009	So I ask this Congress to join me in doing whatever proves necessary. Because we cannot consign our nation to an open-ended recession. And to ensure that a crisis of this magnitude never happens again, I ask Congress to move quickly on legislation that will finally reform our outdated regulatory system. It is time to put in place tough, new common-sense rules of the road so that our financial market rewards drive and innovation, and punishes short-cuts and abuse.  
2009-37	2009	The recovery plan and the financial stability plan are the immediate steps we're taking to revive our economy in the short-term. But the only way to fully restore America's economic strength is to make the long-term investments that will lead to new jobs, new industries, and a renewed ability to compete with the rest of the world. The only way this century will be another American century is if we confront at last the price of our dependence on oil and the high cost of health care; the schools that aren't preparing our children and the mountain of debt they stand to inherit. That is our responsibility.  
2009-38	2009	In the next few days, I will submit a budget to Congress. So often, we have come to view these documents as simply numbers on a page or laundry lists of programs. I see this document differently. I see it as a vision for America -- as a blueprint for our future.  
2009-39	2009	My budget does not attempt to solve every problem or address every issue. It reflects the stark reality of what we've inherited -- a trillion dollar deficit, a financial crisis, and a costly recession.  
2009-40	2009	Given these realities, everyone in this chamber - Democrats and Republicans -- will have to sacrifice some worthy priorities for which there are no dollars. And that includes me.  
2009-41	2009	But that does not mean we can afford to ignore our long-term challenges. I reject the view that says our problems will simply take care of themselves; that says government has no role in laying the foundation for our common prosperity.  
2009-42	2009	For history tells a different story. History reminds us that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas. In the midst of civil war, we laid railroad tracks from one coast to another that spurred commerce and industry. From the turmoil of the Industrial Revolution came a system of public high schools that prepared our citizens for a new age. In the wake of war and depression, the GI Bill sent a generation to college and created the largest middle-class in history. And a twilight struggle for freedom led to a nation of highways, an American on the moon, and an explosion of technology that still shapes our world.  
2009-43	2009	In each case, government didn't supplant private enterprise; it catalyzed private enterprise. It created the conditions for thousands of entrepreneurs and new businesses to adapt and to thrive.  
2009-44	2009	We are a nation that has seen promise amid peril, and claimed opportunity from ordeal. Now we must be that nation again. That is why, even as it cuts back on the programs we don't need, the budget I submit will invest in the three areas that are absolutely critical to our economic future: energy, health care, and education.  
2009-45	2009	It begins with energy.  
2009-46	2009	We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we've fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.  
2009-47	2009	Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders - and I know you don't either. It is time for America to lead again.  
2009-48	2009	Thanks to our recovery plan, we will double this nation's supply of renewable energy in the next three years. We have also made the largest investment in basic research funding in American history - an investment that will spur not only new discoveries in energy, but breakthroughs in medicine, science, and technology.  
2009-49	2009	We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across this country. And we will put Americans to work making our homes and buildings more efficient so that we can save billions of dollars on our energy bills.  
2009-50	2009	But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.  
2009-51	2009	As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.  
2009-52	2009	None of this will come without cost, nor will it be easy. But this is America. We don't do what's easy. We do what is necessary to move this country forward.  
2009-53	2009	For that same reason, we must also address the crushing cost of health care.  
2009-54	2009	This is a cost that now causes a bankruptcy in America every thirty seconds. By the end of the year, it could cause 1.5 million Americans to lose their homes. In the last eight years, premiums have grown four times faster than wages. And in each of these years, one million more Americans have lost their health insurance. It is one of the major reasons why small businesses close their doors and corporations ship jobs overseas. And it's one of the largest and fastest-growing parts of our budget.  
2009-55	2009	Given these facts, we can no longer afford to put health care reform on hold.  
2009-56	2009	Already, we have done more to advance the cause of health care reform in the last thirty days than we have in the last decade. When it was days old, this Congress passed a law to provide and protect health insurance for eleven million American children whose parents work full-time. Our recovery plan will invest in electronic health records and new technology that will reduce errors, bring down costs, ensure privacy, and save lives. It will launch a new effort to conquer a disease that has touched the life of nearly every American by seeking a cure for cancer in our time. And it makes the largest investment ever in preventive care, because that is one of the best ways to keep our people healthy and our costs under control.  
2009-57	2009	This budget builds on these reforms. It includes an historic commitment to comprehensive health care reform -- a down-payment on the principle that we must have quality, affordable health care for every American. It's a commitment that's paid for in part by efficiencies in our system that are long overdue. And it's a step we must take if we hope to bring down our deficit in the years to come.  
2009-58	2009	Now, there will be many different opinions and ideas about how to achieve reform, and that is why I'm bringing together businesses and workers, doctors and health care providers, Democrats and Republicans to begin work on this issue next week.  
2009-59	2009	I suffer no illusions that this will be an easy process. It will be hard. But I also know that nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and the conscience of our nation long enough. So let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year.  
2009-60	2009	The third challenge we must address is the urgent need to expand the promise of education in America.  
2009-61	2009	In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity -- it is a pre-requisite.  
2009-62	2009	Right now, three-quarters of the fastest-growing occupations require more than a high school diploma. And yet, just over half of our citizens have that level of education. We have one of the highest high school dropout rates of any industrialized nation. And half of the students who begin college never finish.  
2009-63	2009	This is a prescription for economic decline, because we know the countries that out-teach us today will out-compete us tomorrow. That is why it will be the goal of this administration to ensure that every child has access to a complete and competitive education -- from the day they are born to the day they begin a career.  
2009-64	2009	Already, we have made an historic investment in education through the economic recovery plan. We have dramatically expanded early childhood education and will continue to improve its quality, because we know that the most formative learning comes in those first years of life. We have made college affordable for nearly seven million more students. And we have provided the resources necessary to prevent painful cuts and teacher layoffs that would set back our children's progress.  
2009-65	2009	But we know that our schools don't just need more resources. They need more reform. That is why this budget creates new incentives for teacher performance; pathways for advancement, and rewards for success. We'll invest in innovative programs that are already helping schools meet high standards and close achievement gaps. And we will expand our commitment to charter schools.  
2009-66	2009	It is our responsibility as lawmakers and educators to make this system work. But it is the responsibility of every citizen to participate in it. And so tonight, I ask every American to commit to at least one year or more of higher education or career training. This can be community college or a four-year school; vocational training or an apprenticeship. But whatever the training may be, every American will need to get more than a high school diploma. And dropping out of high school is no longer an option. It's not just quitting on yourself, it's quitting on your country -- and this country needs and values the talents of every American. That is why we will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world.  
2009-67	2009	I know that the price of tuition is higher than ever, which is why if you are willing to volunteer in your neighborhood or give back to your community or serve your country, we will make sure that you can afford a higher education. And to encourage a renewed spirit of national service for this and future generations, I ask this Congress to send me the bipartisan legislation that bears the name of Senator Orrin Hatch as well as an American who has never stopped asking what he can do for his country -- Senator Edward Kennedy.  
2009-68	2009	These education policies will open the doors of opportunity for our children. But it is up to us to ensure they walk through them. In the end, there is no program or policy that can substitute for a mother or father who will attend those parent/teacher conferences, or help with homework after dinner, or turn off the TV, put away the video games, and read to their child. I speak to you not just as a President, but as a father when I say that responsibility for our children's education must begin at home.  
2009-69	2009	There is, of course, another responsibility we have to our children. And that is the responsibility to ensure that we do not pass on to them a debt they cannot pay. With the deficit we inherited, the cost of the crisis we face, and the long-term challenges we must meet, it has never been more important to ensure that as our economy recovers, we do what it takes to bring this deficit down.  
2009-70	2009	I'm proud that we passed the recovery plan free of earmarks, and I want to pass a budget next year that ensures that each dollar we spend reflects only our most important national priorities.  
2009-71	2009	Yesterday, I held a fiscal summit where I pledged to cut the deficit in half by the end of my first term in office. My administration has also begun to go line by line through the federal budget in order to eliminate wasteful and ineffective programs. As you can imagine, this is a process that will take some time. But we're starting with the biggest lines. We have already identified two trillion dollars in savings over the next decade.  
2009-72	2009	In this budget, we will end education programs that don't work and end direct payments to large agribusinesses that don't need them. We'll eliminate the no-bid contracts that have wasted billions in Iraq, and reform our defense budget so that we're not paying for Cold War-era weapons systems we don't use. We will root out the waste, fraud, and abuse in our Medicare program that doesn't make our seniors any healthier, and we will restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas.  
2009-73	2009	In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans. But let me perfectly clear, because I know you'll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people: if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime. In fact, the recovery plan provides a tax cut -- that's right, a tax cut -- for 95% of working families. And these checks are on the way.  
2009-74	2009	To preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security. Comprehensive health care reform is the best way to strengthen Medicare for years to come. And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans.  
2009-75	2009	Finally, because we're also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget. That is why this budget looks ahead ten years and accounts for spending that was left out under the old rules - and for the first time, that includes the full cost of fighting in Iraq and Afghanistan. For seven years, we have been a nation at war. No longer will we hide its price.  
2009-76	2009	We are now carefully reviewing our policies in both wars, and I will soon announce a way forward in Iraq that leaves Iraq to its people and responsibly ends this war.  
2009-77	2009	And with our friends and allies, we will forge a new and comprehensive strategy for Afghanistan and Pakistan to defeat al Qaeda and combat extremism. Because I will not allow terrorists to plot against the American people from safe havens half a world away.  
2009-78	2009	As we meet here tonight, our men and women in uniform stand watch abroad and more are readying to deploy. To each and every one of them, and to the families who bear the quiet burden of their absence, Americans are united in sending one message: we honor your service, we are inspired by your sacrifice, and you have our unyielding support. To relieve the strain on our forces, my budget increases the number of our soldiers and Marines. And to keep our sacred trust with those who serve, we will raise their pay, and give our veterans the expanded health care and benefits that they have earned.  
2009-79	2009	To overcome extremism, we must also be vigilant in upholding the values our troops defend -- because there is no force in the world more powerful than the example of America. That is why I have ordered the closing of the detention center at Guantanamo Bay, and will seek swift and certain justice for captured terrorists - because living our values doesn't make us weaker, it makes us safer and it makes us stronger. And that is why I can stand here tonight and say without exception or equivocation that the United States of America does not torture.  
2009-80	2009	In words and deeds, we are showing the world that a new era of engagement has begun. For we know that America cannot meet the threats of this century alone, but the world cannot meet them without America. We cannot shun the negotiating table, nor ignore the foes or forces that could do us harm. We are instead called to move forward with the sense of confidence and candor that serious times demand.  
2009-81	2009	To seek progress toward a secure and lasting peace between Israel and her neighbors, we have appointed an envoy to sustain our effort. To meet the challenges of the 21st century - from terrorism to nuclear proliferation; from pandemic disease to cyber threats to crushing poverty -- we will strengthen old alliances, forge new ones, and use all elements of our national power.  
2009-82	2009	And to respond to an economic crisis that is global in scope, we are working with the nations of the G-20 to restore confidence in our financial system, avoid the possibility of escalating protectionism, and spur demand for American goods in markets across the globe. For the world depends on us to have a strong economy, just as our economy depends on the strength of the world's.  
2009-83	2009	As we stand at this crossroads of history, the eyes of all people in all nations are once again upon us - watching to see what we do with this moment; waiting for us to lead.  
2009-84	2009	Those of us gathered here tonight have been called to govern in extraordinary times. It is a tremendous burden, but also a great privilege - one that has been entrusted to few generations of Americans. For in our hands lies the ability to shape our world for good or for ill.  
2009-85	2009	I know that it is easy to lose sight of this truth -- to become cynical and doubtful; consumed with the petty and the trivial.  
2009-86	2009	But in my life, I have also learned that hope is found in unlikely places; that inspiration often comes not from those with the most power or celebrity, but from the dreams and aspirations of Americans who are anything but ordinary.  
2009-87	2009	I think about Leonard Abess, the bank president from Miami who reportedly cashed out of his company, took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him. He didn't tell anyone, but when the local newspaper found out, he simply said, I knew some of these people since I was 7 years old. I didn't feel right getting the money myself."  
2009-88	2009	I think about Greensburg, Kansas, a town that was completely destroyed by a tornado, but is being rebuilt by its residents as a global example of how clean energy can power an entire community - how it can bring jobs and businesses to a place where piles of bricks and rubble once lay. "The tragedy was terrible," said one of the men who helped them rebuild. "But the folks here know that it also provided an incredible opportunity."  
2009-89	2009	And I think about Ty'Sheoma Bethea, the young girl from that school I visited in Dillon, South Carolina -- a place where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom. She has been told that her school is hopeless, but the other day after class she went to the public library and typed up a letter to the people sitting in this room. She even asked her principal for the money to buy a stamp. The letter asks us for help, and says, "We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world. We are not quitters."  
2009-90	2009	We are not quitters.  
2009-91	2009	These words and these stories tell us something about the spirit of the people who sent us here. They tell us that even in the most trying times, amid the most difficult circumstances, there is a generosity, a resilience, a decency, and a determination that perseveres; a willingness to take responsibility for our future and for posterity.  
2009-92	2009	Their resolve must be our inspiration. Their concerns must be our cause. And we must show them and all our people that we are equal to the task before us.  
2009-93	2009	I know that we haven't agreed on every issue thus far, and there are surely times in the future when we will part ways. But I also know that every American who is sitting here tonight loves this country and wants it to succeed. That must be the starting point for every debate we have in the coming months, and where we return after those debates are done. That is the foundation on which the American people expect us to build common ground.  
2009-94	2009	And if we do -- if we come together and lift this nation from the depths of this crisis; if we put our people back to work and restart the engine of our prosperity; if we confront without fear the challenges of our time and summon that enduring spirit of an America that does not quit, then someday years from now our children can tell their children that this was the time when we performed, in the words that are carved into this very chamber, "something worthy to be remembered."