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Show President Loudly Cheered When He Refers to r I J A foreigners Who Have Brought Disgrace Upon Us II jj And Who Must Be Purged of Corrupt Distemper II , j AMERICAN CITIZENS WHO ENDANGER II. S. NEUTRALITY ARE ARRAIGNED :j President Deeply Stirred Country Has Never Before Wit- ;j: nessed Anything Like Present Situation Outlines I Plans for National Defense and Declares New and I Broad Doctrine of Pan-Americanism Is Neces- I sary Neighbors Should Be Free From fj Domination and America Set Aside : for Uses of Independent Nations j and Political Freedom. . : (advocates great merchant marine i J Says "It Is High Time We Resumed Our Commercial Inde- J pendence on the High Seas" Republicans Vigorously i Applaud Reviews Fiscal Situation People of i Country Do Not Approve Postponing of Payment l'i of Bills Should Pay as We Go. . Washington, Dec. 7. President Wil- J . son, in his annual address to congress today, laid down the administration plans for national defense and told his hearers It was necessary to have a new and hroad doctrine for Pan-America, Pan-America, ' ' With sharp words, he arraigned American citizens who, by their sympathy sym-pathy for the foreign belligerents, had endangered the neutrality of the United StateB. H "America never witnessed anything !like this before," declared the president presi-dent with deep reeling. The president's outline of the plans for national defense and the need for them was received in silence by the senators and representatives, but with rapt attention. His declaration of a g new Pan-American doctrine was re-i re-i 1 ceived with the deepest interest. j J "We insist on security in prosecut-n prosecut-n ', too our self-chosen lines of national ? l& development," said he. "Wo do more I ml than that Wo demand it also for ifc others. Wo do not confine our en-1 en-1 tliusiasm for individual liberty and R free national development to tho in-( in-( cidents and movements of affairs which affect only ourselves. We feel 't It wherever there is a people that Il tries to walk iu these difficult paths f of Independence and right. From the i first wo have made common causo with all partisans of liberty on this a side of the sea and have deemed it as Important that our neighbors jt should be as free from all outsido dom-X dom-X ination as that we ourselves should he; have set America aside as a K whole for tho uses of Independent na- lions and political freedom." Prolonged Applause. This reference was greeted with j prolonged applause and evidently was p received with great interest by the It Latin-American diplomats who were ! present, I Outside of the main points of nail na-il tional defense and his reference to I Pan-Americanism, the president cov- cred a broad range of subjects the I broadest he ever has included in an I address to congress. They included the building of a merchant marine, if the raising of revenue for the deli de-li fensc projects, a rural credit law. ul-timato ul-timato independence for the Philippines, Philip-pines, construction bills and a variety of measures left over from tho last congress. i When tho president urged a mer-'! mer-'! -chant marine, he was loudly applaud- !r ed. He was forced to stop when he said: I "It is high time we resumed our i commercial independence on the high j isc-as." i Republicans clapped their hands i vigorously when he said that "the task of building up an adoquato mer-, mer-, chant marine, America private capital p r must ultimately undertalco and A achieve, as it has undertaken and i achieved every other like task I amongst us in the past, with adnilr-I adnilr-I .; able enterprise, iutelligenco and I - vigor." I ' Close attention was given while the I president spoke-of the fiscal situation I and there was more applause when hfi said: ,, , , ,. "I for one do not believe that the i people of this country approve of ' postponing the payment of their , hills." I' ' Greatest Enthusiasm. Whten he referred to foreigners lthln the United StateB borders who. i itrhllc small in number, "have brought deep disgrace upon us, and neccssi- I, Ute use of processes of law by which c may bs purged of their corrupt distempers," the greatest enthusiasm as shown and loud applause interrupted. inter-rupted. , Finallv, at 1:42 o'clock, after having "been roadlng steadily more than an tour, the president finished, and an-' an-' other outburst of cheering took place . s he left the chamber, and started I btck to the White House. I The joint sosslon dissolved, the sen- ;;alfc tiled back to its chamber, and the IK nouso resumed work where It had If lert H- If President's Message. II . Gentlemen ol the Congiess: Since 211 la8t had tho I,rivilese oC lddresslns you on the st.ate 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 extend-ed its threatening and sinister scope until It has swept within its flame some j.ortion of every quarter of the globe, not excepting our own hemisphere, hemis-phere, has altered the whole face of International affairs, and now presents pre-sents a prospect of reorganization and reconstruction such as statesmen and peoples have never been called upon to attempt before. We havo 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 tho conflict on; it was necessary, if a universal catastrophe catas-trophe was to be avoided, that a limit should be set to the sweep of destructive destruc-tive 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 self-governed nations of thfs 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 re-cuperation we earnestly hope and believe be-lieve that they can be of infinite service. ser-vice. In this neutrality, to which they were bidden not only by their separ-ato separ-ato life an their habitual detachment from the politics of Europe but also by a clear perception of international duty, the states of America havo become be-come conscious of a new and more vital community of interest and moral partnership In affairs, more clearly conscious cX the many common sympathies sym-pathies and interests and duties which bid the stand together. New Pan-Americanism. There'was a time In the early days of our own great nation and of the republics fighting their way to independence inde-pendence In Central and South America Amer-ica when the government of" the United Unit-ed Slates looked unon itself as in sorno sort tho guardian of the republics repub-lics to the south of her as against any encroachments or efforts at political politi-cal control from tho other side of the water; felt It its duty to play the part even without invitiation from them and I think that we can claim that the task was undertaken with a true and disinterested enthusiasm for the free-l dom of the Americas and the unmolested unmo-lested self-government of her independent inde-pendent peoples. But It was always difficult to maintain such a role without with-out offense to the pride of the peoples whose freedom of action wo sought Jo protect, and without provoking serious misconceptions of our motives, and every thoughtful man of affairs must welcome tho altered circumstances of the now day In whose light we now stand, when there is no claim of guardianship guard-ianship or thought of wards but, Instead, In-stead, a full and honorable association as of partners between ourselves and our neighbors. In the interest of all America, north and south. Our con-corn con-corn for the independence and prosperity pros-perity of the states of Central and South America is not altered. We retain re-tain unabated the spirit that has inspired in-spired us throughout the whole life of our government and which was so frankly put into words by President Munroe. We still mean always to make a common cause of national independence in-dependence and of political liberty in America. But that purpose is now better understood so far as it concerns con-cerns ourselves. It is known not to bo a selfish purpose. It is known to have in it no thought of taking advantage of any government in this homisphere 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. independ-ence. Put to Test in Mexico. We have been put to the teat in Mexico, and we have stood the test. Whether we have benefited -Mexico by the course wo have pursued re- ; mains to be seen. Her fortunes are : in her own hands. But we have at least proved that wc will not take advantage ad-vantage of her in her distress and undertake un-dertake to Impose upou her an order and government of our own choosing. Liberty is often a fierce and intractable intract-able thing, to which no bounds can be set, and to which no bounds of a few men's choosing ought ever to bo set. Every American who has drunk at the true fountains of principle and tradition tradi-tion must subscribe without reservation reserva-tion to the high doctrine of the Virginia Vir-ginia Bill of Rights, which in the great days in which our government was set up was everywhere amongst us accepted ac-cepted 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 tho community commun-ity hath an indubitable, inalienable, and indefeasible right to reform, alter, or abolish it, in such manner as shall be judged most conducive to tho public pub-lic weal." We have unhesitatingly applied ap-plied that heroic principle to tho case of Mexico, and now hopefully await tho rebirth of tho troubled Republic, which had so much of uhich to purge itself and so little sympathy from any outside quarter In the radical but necessary nec-essary process. We will aid and be- ( Continued on Page 3) I1 PRESIDENT IS 1 LOUDLY CHEERED MO (Continued from Pago 1) W - W friend Mexico, but we will not coerce !.W, her; and our course with regard to IM her ought to be sufficient proof to all 9.W America that we seek no political suz-3JW suz-3JW eralnty or selfish control. !LW Republics Co-Operating Friends. iW;J The moral is, that the states of ti i America axe not hostile rivals but colli co-lli I operating friends, and that their grow-ioJS" grow-ioJS" ' ing sens of community of interest, !1S , alike in matters political and in mat-9,( mat-9,( j ters economic, is likely to give thera ft! a new significance as factors in interim inter-im 7 natlonl affairs and in the political his- fS ' tory of the world. It presents them as tfi , in a very deep and true sense a unit lif j in world affairs, spiritual partners, 3U J standing together because thinking to- 450 gether, quick with common synipa- tfji thies and common ideals. Separated jl j( they are subject to all the cross cur- tjyi j rents of the confused politics of a bjn world of "hostile rivalries: united in rjjjl spirit and purpose they canot be dis- appointed of their peaceful destiny This is Pan-Amercanism. 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. A very notable body of men recently recent-ly met in the City of Washington, at the Invitation and as the guests of this Government, whose deliberations are tobe looked back to as marking a memorbale turning point In the history of America. They were representative representa-tive spokesmen of the several independent inde-pendent states of this hemisphere and were assembled to discuss the financial financi-al and commercial relations of the republics re-publics of the two continents which nature and political fortune have so intimately linked together. I earnestly earnest-ly recommend to your perusal the reports re-ports of their proceedings and of the actions of their committees. You will get from them, I think, a fresh conception concep-tion of the ease and Intelligence and advantage wtih which Americans of both continents may draw together in practical co-operation 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 Drawing Americas Together. There is, I venture to point out. an especial significance just now attaching attach-ing to this whole matter of drawing the Americas togethor in bonds of honorable partnership and mutual ad-vantage ad-vantage because of the economic readjustments read-justments which the world must inevitably in-evitably witness within the next generation, gen-eration, when peace shall have at last resumed Its healthful tasks. In the performance of these tasks I believe me Americas to be destined to play their parts togethor. I am Interested to fix your attention on this prospect now because unless you take it within your view and permit the full significance signi-ficance 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 front of my whole thought as I address you today. I mean national defense. No one who really comprehends the spirit of the great people for whom we are appointed to speak can fall to percieve that their passion is for peace, thetfr 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. prin-ciples. But just because we demand unmolested development and the undisturbed un-disturbed government of our own lives upon our own iprin-ciples of right and liberty, we resent, from whatever quarter It may come, the aggression we ourselves will not practice. We Insist In-sist upon security in prosecuting our self'Chosen lineB of national development. develop-ment. We do more than that. We demand de-mand it also for others. We do not confine our enthusiasm for individual liberty and free national development to the incidents and movements of affairs af-fairs which affect only ourselves. Wo foel it wherover 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 of the sea, and have deemed it as important that our neighbors should be free from all outside domination as that we ourselves should be; have set America asido as a whole for the uses of independent nations and political politi-cal freemen. Out of such thoughts grow all our policies. We regard war merely as a means of asserting the rights of a people peo-ple against aggression. And we are as fiercely Jealous of coercive or dictatorial dic-tatorial power within our own nation as of aggression from without. We will not maintain a standing army except ex-cept 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 peaco establishment is no larger than is actually and continuously continuo-usly needed for tho 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 caro of themselves and of the governments govern-ments which they have set up to serve them. In our constitutions themselves wo have commanded that "the right of the people to keep and bear arms shall not be infringed," and our confidence con-fidence has been that our safety in times of danger would lie in the rising of the nation to take caro of itself, as the farmers rose at Lexington. War Is Disciplined Might. 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 suddeu summons, they must know how modern fighting is done, and what to do when the summons comes to render rend-er themselves imemdiately 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 tho rights also of those with whom the have made common cause, should they also be put in jeopardy. Ihey must be fitted to play the great iole in the world, and particularly In this hemisphere, for which they are qualified by principle and by chastened chasten-ed ambition to play. National Defense Plan. Jt 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 be-fore you. and which I urge you to sanction sanc-tion and put into effect as soon as they can be properly scrutinized and discussed They seem to me the essential es-sential first steps, and they seem to me for tho present sufficient. They contemplate an Increase of tho standing force of the regular army from its present strength of five thousand thous-and and twenty-three officers and one hundred and two thousand nino hundred hun-dred and eighty-fivo enlisted men of all sen-Ices to a strength of seven thousand one hundred and thirty-six officers and one hundred and thirty-four thirty-four thousand seven hundred and seven enlisted men, or 141,843, all told, all services, rank and file, by the addition addi-tion of fifty-two companies of coast artillery, fifteen companies of engineers, engi-neers, ten regiments of infantry, four regiments of field artillery and four aero squadrons, besides seven hundred hun-dred and fifty officers required for a great variety of extra service, especially especi-ally the all important duty of training train-ing the citizen force of which I shall presently speak, seven hundred and ninety-two non-commissioned officers for service in drill, recruiting and tho like, and the necessary quota of on-listed on-listed men for the Quartermaster Corps, the Hospital Corps, the Ordnance Ord-nance Department, and other similar auxiliary services. These are tho additions ad-ditions necessary to render the army adequate for its present duties, duties du-ties 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 tho Isthmus, and in Porto Rico. Army of Trained Citizens. By way of making tho country ready to assort 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 incre-ments 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 tho serviceable men of the country would be asked to bind themselves them-selves 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 bo provided with personal accoutrements as fast as enlisted and their equipment equip-ment for tho field made ready to bo supplied at any time. They would bo assembled for training at stated intervals at 'convenient places In association asso-ciation with suitable units of tho regular regu-lar army. Their period of annual training would not necessarily exceed two months in the year. Jt would depend upon tho patriotic feeling of the younger men of the rcountry whether they responded to such a call to service or not. It would depend upon the patriotic spirit of the employers of the country -wheih- er they mado It possible for the younger young-er men in their employ to respond under favorable conditions or not. I, for one, do not doubt the patriotic devotion de-votion 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 ex-periment with entire confidence. At least so much by way of preparation prepar-ation for defense seems to me to be absolutely imperative now. Wo cannot can-not do less. Plan of Secretary of Navy. The -program which will be laid be-foro be-foro 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 car-ried out; but it does make definite and explicit a program which has heretofore been only implicit, held in the minds of the Committees on Naval Affairs and disclosed in the debates of tlio two Houses but novhore formulated form-ulated or formally adopted. It seems to mo very clear that it will be to the advantage of the country coun-try for the Congress to adopt a comprehensive com-prehensive 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, battleships, one battle cruiser, two the country as our first and chief lino of defense; we have always seen it to be our manifest course of prudence to be strong on the seas. Year by year 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. Building of Warships. The program to be laid before you contemplates the construction within fhe years of ten battleships, six battle cruisers, ten scout cruisers, fifty destroyers, de-stroyers, fifteen fleet submarines, eighty-five coast submarines, four gunboats, gun-boats, one hospital ship, two ammunition ammu-nition 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 tleships, two battle cruisers, two stroyors, tour fleet submarines, fifteen coast submarines, one gun boat, and one fuel oil ship, the third year, two battleships, one battle cruiser, two scout cruisers, five destroyers, two fleet submarines, .and fifteen coast submarines, the fourth year, two bat-battleships, bat-battleships, one battle cruiser, two scout cruisersv ten destroyers, two fleet submarines, fifteen coast submarines, sub-marines, one ammunition ship, and one fuel oil ship, and the fifth year, two battleships, one battle cruiser, two scout cruisers, ten destrojers, two fleet submarines, fifteen coast submarines, sub-marines, one gunboat, one ammunition ship, and one repair ship The Secretary of the Navy is asking also for the immediate addition to the personnel of the navy of seven thousand thous-and fhe hundred sailors, twenty-five hundred apprentice seamen, and fifteen fif-teen hundred marines. This increase would be sufficient to care for the ships which are' to be completed within with-in tlio 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 191S. It is also necessary that number of midshipmen at the Naval academy at Annapolis should be increased by at least threo hundred in order that the force of officers of-ficers 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 cer-tain number of men taken from civil life. Navy of 1921. If this full program should bo carried car-ried out we should havo built or building build-ing in 1921, according to the estimates of survival and standards of classification classifi-cation followed by the General Board of tho 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, cruis-ers, three second class cruisers, ten third class cruisers, one hundred and eight destroyers, eighteen fleet submarines, sub-marines, one hundred and fifty-seven coast submarines, six monitors, twenty gunboats, four supply ships, fifteen fuel ships, four transports, three tenders tend-ers to torpedo vessels, eight vessels of special types, and two ammunition snips. This would be a navy fittod to our needs and worthy of our traditions. tradi-tions. Trade an'd Shipping. But armies and Instruments of wax are only part of what has to be con. sldercd if we are to consider tho su preme matter of national self-sufflcl ency and security in all Its aspects, There are other great matters which will bo thrust upon our atention whether we will or not. There is, foi example, a very pressing question ol trade and shipping involved In this groat problem of national adequacy, It is necessary for many weighty reasons rea-sons of national efficiency and development devel-opment that wo should havo a great merchant marine. The great merchant merch-ant fleet wo once used to make ua rich, that great body of sturdy sailors who used to carry our flag into every sea, and who woro the pride and often the bulwark of the nation, wo have almost driven oat of existence by Inexcusable In-excusable neglect and Indifference and by a hopelessly blind and provincial policy of so-called economic protection. protec-tion. It is high time we repaired out mistake and resumed our commercial independence on the seas. 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, mer-cy, to do with as they please. We must use their ships, and uso 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 bo permitted to use even the ships of other nations in rivalry of their own trade, and are without means to extend our commerce com-merce 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 car-rier on the seas and enjoy the econo mlc Independence which only an adequate ade-quate merchant marine would give It, but also that tho American hemisphere hemis-phere as a whole should enjoy a like independence and self-sufficiency, il it is not to be drawn into the tangle of European affairs. Without such independence the whole question ol our political unity and self determination determina-tion is very seriously clouded and complicated Indeed. Great Merchant Marine Needed. Moreover, tvg can develon 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 friend-ships and rendering indispensable services to all interests on this side the water. They must move constantly constant-ly back and forth between the Americas. Ameri-cas. They are the only shuttles that can weave the delicate fabric of sympathy, sym-pathy, comprehension, confidence, and mutual dependence in which we wish to clothe our policy of America for Americans 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 admir-able enterprise, intelligence and vigor; vig-or; 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 pur-chase and American registration of ships But capital can not accomplish this great task of a sudden! It must embark upon it by degrees, as the opportunities op-portunities of trade develop Something Some-thing 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 learn-ed 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 in-itial financial risks. When the risk has passed and private capital begins I to find its way in sufficient abundance abun-dance into these new channels, the government may withdraw. But It i can not omit to begin. It should taKo the first steps, and should take them at once. Our goods must not lie piled up at our ports and stored upon sidetracks in freight cars which are daily needed on the roads; must not be left without means of transport trans-port to any foreign quarter. We must not await the permission of foreign ship owners and foreign governments to send them where we will. Must Link Tvo Countries. With a view to meeting these pressing necessities of our commerce and availing ourselves at the earliest possible moment of the present unparalleled un-paralleled opportunity of linking ,the two Americas together in bonds of mutual interest and service, an opportunity op-portunity which may never return again if we miss it now, proposals will be made to the present congress for tho purchase or construction of ships to be owned and directed by the government similar to thoso made to tho last congress, but modified in some essential particulars. I recommend recom-mend these proposals to you for your prompt acceptance with the more confidence con-fidence because every month that has elapsed since the former proposals were niade has made the necessity for such action more and more manifestly manifest-ly imperative. The 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 particulars of the program 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 i imi n mil ii n II " solution of this -pressing problem. Our Island Policy. I jjl There is another matter which , ral associated with the question of na- j vjH tlonal safety and preparation for de- ij B; fense That is our policy towards : H the Philippines and the people of i'' Forto Rico. Our treatment of them I'l and their attiude towards us are man- i'l ifestly of the first consequence in tho ( '; 3 development of our duties in the ' jfcl world and in getting a free hand to I ra perform those duties. We must be ' L free from every unnecessary burden IHrl or embarrassment; and there is no v'l better way to be clear of embarrass- I K ment than to fulfill our promises and ' E promote thp interests of those de- Kl pendent on us to the utmost. Bills for I R the alteration and reform of the gov- ' B eminent of the Philippines and for i Kl rendering fuller political justice to ' B the people of Porto Rico were sub- IbI mitted to the sixty-third congress. j l' !Thcy will be submitted also to you.. I j l I need not partlcularizo their dotails. Iwl j You are most of you already familiar rl with them. But I do recommend I'l them to your early adoption with the ll sincere conviction that there are few ' measures you could adopt which tH would more serviceably clear the way ' iH for the great policies by which we H wish to make good, now and always, H our right to lead in enterprises of peace and good will and economic and 1 political freedom. H The plans for the armed forces of (H the nation which I have outlined, and pl for the general policy of adequate ll preparation for mobilization and de- jH fense, involve of course very large fH additonal expenditures of money ox- lH penditures which will considerably ex- iH ceed 'the estimated revenues of the H government. It is made my duty by jH (Continued on Page 4) H aaOggBBJI mill III I I .lligXBB3B3EEajg IH . vvi PRESIDENT IS LOUDLY CHEERED (Continued From Page 3.) law, whenever the estimates of expenditure ex-penditure exceed the estlmats of revenue, rev-enue, to call the atentlon of the congress con-gress to tho fact and BUggest any means of meeting the deficiency that it may be wiBe or possible for me to suggest. I am ready to believe that it would be my duty to do so in this case; and I feel particularly bound to speak of the matter when it appears ap-pears that the deficiency will arise directly out of the adoption by the congress of measures which I myself might urge it to adopL AJlow me, therefore, to 6peak briefly of the present state of the treasury and of the fiscal problems which the next year will probably disclose. Condition of Treasury. On the thirtloth of June last there was an available balance in the general gen-eral fund of the treasury of $104,170,-105.78. $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, tho 3l3t of December, 1915, and that the present duty of ono cent per pound on sugar will be discontinued after the first of May, 1916, -will be ;67O,365,500. The balance of June last and these estimated revenues come, thereioro, to a grand total of $774,535,605 78. The total estimated disbursements for the present fiscal year, Including twenty-flvo millions for tho Panama canal, twelve millions for probable deficiency appropriations and fifty thousand dollars for miscellaneous miscel-laneous debt redemptions, will be $763,891,000; and tho 'balance In the general fund of the treasury will be reduced to $20,644,605.78. The emergency emer-gency revenue 'act, if continued beyond be-yond its present time limitation, would produce, during tho half year then remaining, about forty-one "millions. "mil-lions. The duty of one cent per pound on sugar, if continued, would produce during the two months of the fiscal year remaining after tho first of May, about fifteen millions. Those two sums amounting together to fifty-six fifty-six millions, if added to the revenues of tho second half of tho fiscal year, would yield thb treasury at the end of the year and available balance of $7,644,6e5.78. Tho additional revenues required to carry out the program of military and naval preparation of -which I have spoken, would, as at present estimated, estimat-ed, bo for the fiscal year 1917, $93,-800,000. $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 im-posed by the emergency revenue act and the present duty on sugar arc to be discontinued, and that the bal- . ance at the close of the fiscal year willbe only $20,644,605.78. that the disbursements for the Panama rjTiai will again be about twenty-flve millions, mil-lions, and that the additonal expondi- i tures for tho army, sad aavjs. are a- thorized bv tho congress, the defici in tho general fund of the Treasur; on tho 30th of June, 1917, will b nearly two hundred and thlrty-flv millions. To this- sum at least fift millions should bo added to represen a safe working balance for the trens ury, and twelve millions to Include tho usual deficiency estimates Ii 1917; and these additons would mak a total doflclt of somo two hundre and ninety-seven millions. Tf thi present taxes should be continue throughout this year and the 'next however, there would be a balance ii the treasury of some seventy-six am a half millions at tho end of th present fiscal year, and a deficit a tho end of the next year of som fifty millions, or, reckoning in sixty two millions for deficiency approprl atlons and a safe treasury balance a tho end of the year, a total deficit o Borne one hundred and twelve mil lions. The obvious moral of the fig ures Is that it Is a plain counsel oi prudence to continue all of the pres ent taxes or their equivalents, am conflno ourselves to the problem oi providing one hundred and twelve millions of new revenue rather thar two hundred and ninety-seven mil lions. Borrowing. Short-Slghted Finance. How shall wo obtain the new rev cnue? We aro frequently reminded that there are many millions ol bonds which the treasury Is author Ized under existing law to sell to reimburse re-imburse tho sums paid out of current revenues for the construction of the Panama canal c and It is true that bonds approximately $222,000,000 aro now available for that purpose. Prior to 1913 $134,631,980 of these bonds had actually been sold to recoup re-coup the expenditures at tho Isthmus; and now constitute a considerable Item of tho public debt But I, for one, do not believe that tho people of this country approve of postponing tho payment of their bills. Borrowing Borrow-ing money fs short-sighted finance It can be Justified only when permanent things are to be accomplished which ! many generations will certalnil benefit bene-fit by and which it seems hardly fair that a single generation should pay for. The objects we arc now proposing pro-posing to spend money for can not be so classed, except In the sense that everything wisely done may be said to bo done in the Interest of posterity pos-terity as well as In our own. It seems to me a clear dictate of prudent pru-dent statesmanship and frank finance that in what we are now, I hope, about to undertake we should, pay as we go. Tho people of the country aro entitled to know just whnt burdens bur-dens of taxation they are to carry, and to know from the outset, now. The new bills should be paid by internal in-ternal taxation. To what sources, then, shall we turn? This is so peculiarly a question ques-tion which the gentlemen of the house of representatives are expected to answer under the constitution to propose an answer to that you ,will hardly expect mo to do more than discuss it in very general terms. We should be following an almost universal uni-versal example of modern governments govern-ments if we were to draw the greater part or even the whole of the revenues reve-nues 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 generation, genera-tion, tho surtax itself, tho income taxes as at present apportioned would yield sums sufficient to balance the books of tho treasury at the end of the fiscal year 1817 wkhout anywhere making the burden unreasonably or oppressively heavy. The precise reckonings reck-onings are fully and accurately set out In the report of the secretary of the treasury which will be immediately immediate-ly laid before you. Sources of Revenue. 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 one cent tax per gallon on gasoline and naphtha would yield, at the present estimated production, pro-duction, $10,000,000, a tax of ono cent per horse power on automobiles and internal explosion engines, $15,-000,00; $15,-000,00; a stamp tax on bank cheques, probably $1S,000,000: a tax of twenty-Tlve twenty-Tlve cents per ton "on pig iron, $10,-00,000; $10,-00,000; a tax of 25 cents per ton on fabricated Iron and steel, probably $10,000,000. In a country of great industries in-dustries like this it ought to be easy to distribute tho burdens of taxation without making them anywhere bear too heavily or too exclusively upon any one set of perons or undertakings. undertak-ings. What Ib clear Is, that the industry in-dustry of this generation should pay the bills of this government. Thorough Preparedness. I have spoken to you today, gentlemen, gen-tlemen, upon a single theme, the thorough thor-ough preparation of the nation to care for Its own security and to make sure of entire freedom to play the Impartial Impar-tial role in this hemisphere and in the world which we all believo to have been .providentially assigned to it, I have had In ray mind no thought of any immediate or particular partic-ular danger arising out of our relations rela-tions with other nations. We are at peace with all the nations of tie world and there Is no, reason to hope that no question in controversy between be-tween this and other governments will lead to any serious breach of amicable relations, grave as some differences dif-ferences of attitude and policy have been and may turn out to be. Poison of Disloyalty I am sorry to say that tho gravest throats against our national peace and safaty have been uttered within our own borders. There are citizens of the United States, I blush to ad-njit, ad-njit, born under other flags but welcomed wel-comed under out generous naturalization naturaliza-tion laws to the full freedom and opportunity op-portunity of America, who have opured the poison of disloyalty into the very arteries of our national life who have sought to bring the author-Itq author-Itq and good name of our government into contempt, to destroy our Industries Indus-tries wherever they thought if effective effec-tive for their vindictive purposes to ,5.e at hom and to debase our politics to the uses of foreign intrigue. in-trigue. Their number is not great as compared with the whole number of those sturdy hosts by which, our nation na-tion has boon enriched in recent generations gen-erations out of virile foreign stocks; 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. be-fore. It never dreamed it possible that men sworn into its own citizenship, men drawn out of great free stocks such as supplied some of tho best and strojBjfsm. elements j thai little bat now heroic, nation that In a high day of old staked Its very life to free itself from every entaglemont that had darkened tho fortunes of the older old-er nations and set up a new standard stand-ard here that men of such origins and such free choices of allegiance would ever turn in malign reaction against tho government and people whq had welcomed and nurtured them and seek to make thts proud country onco more a hotbed of European passion pas-sion A little while ago such a thing would havo seemed Incredible. Because Be-cause it was Incredible we made no preparation for it. We would have I been almost ashamed to prepare for it, as If we were suspicious of ourselves, our-selves, our own comrades and neighbors! neigh-bors! 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 mo-ment and feel that In doing so I am urging you to do nothing less than savo the honor and self-respect of the nation. Such creatures of passion, pas-sion, disloyalty and anarchy must be crushed out They are not many, but they are infinitely malignant, and the hand of our power should closo over them at once. They have formed plots to destroy property, vthey have entered into conspiracies against the neutrality of the government, they have sought to pry Into every confidential confi-dential 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 terras in which they may be dealt with. Many Disloyal Ones. I wish It could be.sald that only a few men, misled by mistaken sentiments senti-ments of allegiance to the governments govern-ments under which they were born, had been guilty of disturbing the self-posBession self-posBession 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 in-stinctively 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 can not. There are some men among us, and many resident abroad who, though born and bred in- the United States and calling themselves Americans, Ameri-cans, have so forgotten themselves and their honor as citizens as to put their passionate sympathy with one or tho other side in the great European Euro-pean conflict above their regard for the peace and dignity of the United States. They also preach and practice prac-tice disloyalty. No laws. I suppose, can reach corruptions of the mind and heart; but I should not speak of others oth-ers without also speaking of these and expressing the even deeper humiliation hu-miliation and Bcorn which every self-possessed self-possessed and thoughtfiuly patriotic American must feel when he thinks 'of them and of the discredit they are daily bringing upon us. Domestic Questions Vital. While we speak of preparation of the nation to make sure of her security secur-ity and her effective power we must not fall into the patent error of supposing sup-posing 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, protec-tion, for encouragement, and for assistance as-sistance in their development; from the organization and freedom and vitality vi-tality of our economic life. The domestic do-mestic 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 can not 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 instrumen-talities by which to mobollze our economic eco-nomic resources in any time of national na-tional necessity, I take it for granted that I do not need your authority to call Into systematic consultation with tho directing officers of tho army and navy men of recognized leadership and ability from among our citizens who aro thoroughly familiar, for ox-ample, ox-ample, with the transportation facilities facili-ties of the country and therefore competent to advise how they may bo co-ordinated when the need arises thoso who can suggest tho best way in which to bring about prompt cooperation co-operation among the manufacturers of tho country, should it bo necessary, neces-sary, and those who could assist to bring the technical skill of the conn- try to the aid of the government in the solution of particular problems of i defense. I only hope that If I should 1 3 find cit feasible to constitute such an advisory board the congress would be willing" to vote the small sum of money that would be needed to defray de-fray tho expenses that would probably prob-ably be necessary to give It the clerical cler-ical and administrative machinery which which to do serviceable work. Mobilization of Resources. What is more important is, that the! Industries and resources of the coun- try should be available and ready for mobilization. It is the moro Imperatively Impera-tively necessary, therefore, that we should promply devise means for do-ing do-ing what we have not yet dono; that we should give intelligent federal aid and stimulation to industrial and vocational vo-cational education, as we have long dono In the large field of our agricultural agricul-tural Industry; that, at the samo time that we safeguard and conserve the natural resources of the country we should put them at the disposal of those who will uso them promptly and Intelllgenntb', as was sought to be done In the admirable bills submitted sub-mitted to tho last congress from its committees on public lands, bills which I earnestly recommend In principle prin-ciple to your consideration; that we should put into early operation some provision for rural credits which will add to tho extensive borrowing facilities facil-ities already afforded the farmer by the reserve bank acts adequate instrumentalities instru-mentalities by which long credits may be obtained on land mortages; and that we should study moro carefully than they have hitherto been studied the right adaptation of our economic arrangements to changing conditions. Many condiitons about which wo have 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 im-mediately 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 Indus-try with the energy of those who must bestir themselves to build anew Just what these changes will be no one can certainly forsee or confidently confident-ly 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 infor-mation constantly at our sen-ice so that w may be sure that we know exactly 'what we are dealing with when wo 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 address-ing you more at length on this important im-portant matter a little later in your session. In the meantime, may I make this suggestion? The transportation prob lem 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 he able to cope with It successfully, as at present pres-ent equipped and co-ordinated. I suggest sug-gest that it would be wise to provide a commission of inquiry to ascertain by a thorough canvass of tho whole I question whether our laws as at present pres-ent framed and administered are as serviceable as they might be In the solution of the problem It is obviously ob-viously 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 tho matter mat-ter if we mean to do anything in the field of federal legislation. Must Not Step Backward. No one, I am sure, would wish to take any backward step. The regulation regula-tion 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 Ib, whether there is anything else we can do that would supply us with effective ef-fective means, in the very process of regulation, for bettering the conditions condi-tions under which the railroads are operated and for making them moro useful servants of the country as a whole. Ie seems to mo that It might bo tho part of wisdom, therefore, before be-fore further legislation in this field is attempted, to look at the whole "problem of co-ordination and efficiency effi-ciency In the full light of a fresh assessment of circumstance and. opinion, opin-ion, as a guide to dealing with the several parts of it. 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. na-tion. We should serve it In the spirit of Its particular genius. It is the genius of common men for self-government, industry, justice, liberty and peace. Wo 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. |
