To the Senate and House of Representatives:

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.

FOREIGN RELATIONS

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.

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.

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.

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.

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.

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.

This Government has continued its efforts to act as a mediator in boundary
difficulties between Guatemala and Honduras.

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.

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.

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.

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.

NATIONAL DEFENSE

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.

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.

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.

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.

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.

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.

I recommend that Congress give earnest consideration to the possibilities
of prudent action which will give relief from our continuously mounting
expenditures.

FINANCES OF THE GOVERNMENT

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.

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.

TAX REDUCTION

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.

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.

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.

FOREIGN DEBTS

The past year has brought us near to completion of settlements of the
indebtedness of foreign governments to the United States.

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.

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.

The only indebtedness of foreign governments to the United States now
unsettled is that of Russia and Armenia.

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.

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.

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.

ALIEN ENEMY PROPERTY

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.

GENERAL ECONOMIC SITUATION

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.

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.

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.

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.

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.

AGRICULTURE

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.

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.

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.

THE TARIFF

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.

"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.

"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.

"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.

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.

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.

PUBLIC BUILDINGS

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.

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.

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.

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.

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.

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.

THE WATERWAYS AND FLOOD CONTROL

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.

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.

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.

HIGHWAYS

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.

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.

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.

POST OFFICE

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.

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.

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.

COMMERCIAL AVIATION

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.

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.

RAILWAYS

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.

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.

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.

MERCHANT MARINE

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.

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.

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.

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.

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.

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.

THE BANKING SYSTEM

It is desirable that Congress should consider the revision of some portions
of the banking law.

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.

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.

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.

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.

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.

ELECTRICAL POWER REGULATION

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.

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.

THE RADIO COMMISSION

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.

MUSCLE SHOALS

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.

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.

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.

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.

BOULDER DAM

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.

CONSERVATION

Conservation of national resources is a fixed policy of the Government.
Three important questions bearing upon conservation of the public lands
have become urgent.

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.

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.

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.

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.

SOCIAL SERVICE

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.

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.

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.

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.

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.

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.

PUBLIC HEALTH

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.

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.

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.

FEDERAL PRISONS

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.

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

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.

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

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.

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.

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.

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.

CIVIL SERVICE

Approximately four-fifths of all the employees in the executive civil
service now occupy positions subject to competitive examination under the
civil service law.

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.

DEPARTMENTAL REORGANIZATION

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.

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.

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.

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

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.

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.

LAW ENFORCEMENT AND OBSERVANCE

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.

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.

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.

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.

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.

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.

CONCLUSION

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.

The White House,

December 3, 1929