Show IN CHIEf 1 LAYS OUT ORK fOR CONGRESS Coolidge Outlines Pol Policies cies Which He Believes Are Necessary to the Welfare Wel Wei- fare fare of the People Expresses Disapproval of Publicity of Inc Income m Tax on ori Ground Such Policy Will Reduce Revenues WASHINGTON Dec 3 President dent Coolidge's message to the Six Six- ty eighth ti-eighth congress follows The present state of the Union upon which i it is customary for the president to report to the congress under the provisions of the me C Constitution is such that it may be re- re 1 with encouragement and satisfaction by every American Our Our country is almost unique in it its ability to discharge fully ami promptly all al its is obligations at home and abroad anti and provide pro fo for all its Is Inhabitants an increase in m material resources in Intellectual i vigor and andin in n moral power The nation naton holds holds' a position unsurpassed In all 21 former human experience This does pot ot I a. a an that we do not have haye any lems ler It I is elementary that the in- in I c Creasing aSing aing breadth of our experience necessarily increases the problems of of our national life lite But it i does mean that if v we e wi will but apply ourselves our- our selves elves industriously and honestly ie e nave ample powers with wih which to meet our problems and provide provie for their speedy solution I do not profess that we can secure an era ela Sf J perfection erection in human existence but we can provide an era cra of peace and p prosperity attended with freedom freedom free free- dom and justice and made more and satisfying by the w-ms w rs of the charities and humanities of life pO DOMESTIC ESTIC PROBLEMS I if Our domestic problems ate are for the part economic We have ha our oure e d debt bt to pa pay and we ar are I j I I paying i it We have hae the high cost of ot government to diminish and we I it We e have ha a heavy hey SurSen buren uren of taxation to reduce and I we are reducing it But while remarkable re remarkable re- re progress has been made n In these directions the worst is yet et ettar tar far from accomplished We Ve still sti wi we over the costo cost o of ot the national government is still sti about and the na na- na- na ronAl tonal taxes sti still amount to about 27 27 for dor each f one of inhabitants r o There yet et exists this enormous field fieldor feld forthe or the application of ot economy Ir my oPI opinion lon the government can ta do more to r remedy medy the fhe eco eco- ills ls of ol the people by a system of f rigid economy in public expenditure expend expendi t ture r than can be accomplished an any other action The costs costs costs' Of t t our national and local governments governments govern govern- ments combined now stand at a sum dose close to 00 for each inhabitant inhabit inhabit- I ant t of ol the Ja land d. d A little less than I ohe of this is represented by rational national expenditure and and anda a a. little lite more than two-thirds two by local ex ex- ex J It I is an ominous fact that only the national government its is debt Others are Increasing in increasing increasing in- in creasing theirs at about ach each year ear DEBT DEBT IS SHRINKING Te depression that that overtook business the disaster experienced in agriculture the lack of or employment employ employ- j I ment nent and the terrific terric shrinkage inan in I all an values J-alues alues which our country countr exp ex- ex exI I I p rf ced in a most acute form in I 1 I J O resulted in no ito small smal measure from the tle prohibitive taxes which I M e then levied on all productive it The establishment al of a I system stem of drastic econom economy in public pub- pub lie lic lc expenditure which ha has ha enabled I ul to pay payoff off about one fifth one of ot the nit national nal debt since 1919 and al almost almost al- al most cut in two the national ta tax burden since 1921 has been one of the J in causes in reestablishing a prosperity which has come to in include in- in clude cude within its is benefits almost I I eV every lY one of our inhabitants Economy Econ Econ- I only omy reaches everywhere It t OnY carries carI car car- I ries rles a blessing to everybody 1 I The fallacy of the claim that the I c of gov government are borne by I the rich and make a di- di I r ct contribution to the national treasury cannot be too often ofen exI ex ex- I posed No system em has been devised I I do not think any system could be devised tinder which any person living in this co country could escape being affected by the cost of our government It has a a direct effect both boh upon the rate and t the purchasing pur pur- chasing casIng power of wages It I is felt ln Inthe the price of ol those prime necessities ties tes of ot of existence food clothing itel fifel and shelter sheler It I. I would appear t td b be elementary that th more ore the government expends the more it must require every ever producer to contribute out of or his production to tle tG public treasury and th the less he will wl have for tor his own benefit I The continuing costs of public administration ad ad- ministration can be met in only one I way way by by the work o of ot the people Tho The higher they become the more the people must work for tor the the- gov- gov The less they the are the more the people can work for themselves URGES ECONOMY The Tb The present estimated margi margin be between be be- I tW tween- tween en public receipts and t tu tUTe tes for lor this fiscal year is very very small Perhaps the most Important important Import import- ant wort work that this session of the congress can do is to continue a of economy and further re reduce leduce re- re duce cluce the cost of or government In itt ord or- or 01 d r that we wo have dr may a reduction of ol taxes for tor tho next fiscal year ng is more likely to produce that pU public lc confidence which is the he forerunner and the mainstay y pf pi pJ I prosperity encourage and en enlarge arge b business in ss opportunity with wih ample opportunity for employment employment at good I wages provide a larger market marlet for agricultural products and put our country In a stronger position to be nb to o meet the world competition ln than a continuing policy of Of course necessary co must be bo met proper functions of the government performed t. t 5 J iL i I r I z 4 I i. i I I j I I I I I I j I I 1 I I I I j i and constan investments for capital capital capi- capi i tal account and reproductive ef effort effort et- et fort must be carried on by our Various vaI va various va- va rious riou's departments But th the people I mu must t know that their government gO is 1 placing lacing upon them no unnecessary I MUST LOWER TA TAXES ES j er E Everyone one desires desires a reduction of taxes and there is a great greaL preponderance IreI preponderance pre Ire of sentiment in favor favol of ot I taxation reform When I approved the present tax tx law I stated publicly publicly pub pub- Jc that I did so in spite spie of certain certain tam tain provisions which I believed unWise unwise un unwise un- un I wise and harmful One of ol the most glaring of these was the making public of the amounts assessed against different income taxpayers I Although that damage has now been done I 1 believe lele e its its- continuation to be detrimental to the public welI welfare wel wel- fare and bound to decrease ease public revenues revenues s so o that it i ought to be re re- re pealed Anybody can reduce taxes but hut it is not so easy tasy to stand in the gap and resist the passage of ol In Increasing Increasing In- In creasing cresing appropriation bills bis which would make tax reduction sible It 1 will wi be ver very easy to measure measure mea mea- sure ure the strength of ot the attachment attachment attach attach- ment to reduced taxation by the power with wih which increased appropriation are are resisted If I at the close of the present session the congress congress con con- gress gess has kept within the budget which I propose to present It i will wi I then be possible to have llave a moderate moderate oder- oder ate amount of tax reduction and all al I I the tax reform that the congress Imay may wish for during dring the next fiscal year The country Is now feeling the direct stimulus which came from the passage of the thelast last revenue revenue revenue reve reve- nue nue bill bi and under the assurance of ol a reasonable s system stem of taxation there is every prospect of of a an n era of prosperity of unprecedented proportions pro pro- portions But it i would be idle to ex expect e t an any such results unless business business bustness busi bust ness can continue free from excess profits taxation and be accorded a I system of ot surtaxes at rates which have have r for their object not 1 of or success or the of business but the production production pro pro- ducton of the greatest amount of ot revenue from large incomes I am I convinced that the larger incomes 1 of the country would actual actually yield 1 more revenue to the government go If It i I the basis of taxation were 1 cally caly revised downward Moreover the effectS ot of the present method of I. I this taxation Is to Increase the cost costol of ol interest on pro productive enterprise I and nd to increase the burden of ot rent It I Is altogether likely that such re reduction reduction re- re ducton would so encourage and stimulate investment that it i would firmly establish our country In the I I economic leadership of the world I WATERWAYS SUPPORT I Meantime our internal development development development develop develop- I ment should go oh Provision I should be made for n flood fod od control of such rivers as the Mississippi and the the Colorado and for the opening ming i up of our inland waterways s 's to com merce Consideration is due to the project of better navigation from the Great Lakes to the Gulf Every effort efort Is being made to promote an agreement with wih Canada to build the St St. Lawrence waterway There are pending before the congress bills bis for further development of ot the Mississippi Mississippi Mis Mis- basin bain for the ta taking over of or the Cape Cod canal in accordance accordance accordance accord accord- ance with wih a moral obligation which seems to have hake been incurred durIng during dur dur- ing the war and for the Improvement improvement Improve improve- ment of harbors on both the Pa Pacific pa- pa and ad the Atlantic coasts While tills Hiis last ast should be divested of some of its Is projects and we must proceed slowly these bills in general have my approval al Such works are productive pro prop of or wealth and and in the long longrUn longrun longrun run tend to a reduction of or the tax I bl burden den RECLAMATION POLICY Our country has a we defined well I I policy of established under statutory authority This policy should be continued and made a sustaining self sustaining sel-sustaining activity ad admInistered administered administered ad- ad ministered in a manner that will wi meet local requirements and end bring our arid lands into a a j. j profitable state of ot cultivation as fast as there Is a market for their p ducts Leg Leg- is p pending based on the re report report re- re port of the fact finding commission for the proper relief of those needing needing needing need need- ing extension of time tIe in which to meet their payments on Irrigated land and for additional a amendments amendments amend amend- lend lend- ments and re reo reforms o nis ms of our reclamation reclamation reclamation tion laws which are all arel all exceeding ly important and should be enacted at once AGRICULTURE TURE CONDITIONS 1 o No more important development I I has taken place In the last yea year year- 1 than the beginning of a restoration i of agriculture t to i prosperous con cOn- I Iton We must We-must e must permit e mit nor I I r. r c i J of classes in this country with wih one occupation Striving to secure ad advantage advantage advantage ad- ad vantage over another Each must proceed under open opportunities and with wih a t fair tail prospect of economic economic economic eco eco- equality The government cannot successfully insure prosperIty prosperity prosper prosper- ity iy or fix ples by legislative flat fiat Every business has Its is risk and its is times of depression It I Js is well wel known that In the l long ng run there will wm be a more even prosperity and a. a amore more satisfactory range of ol prices under the natural working out of economic laws than government go gov gor- undertakes the artificial support of markets and industries I Still we can cart so order our affairs I so 50 protect our own people from frol I foreign competition so arrange arrange our II national finances so administer i our monetary system so provide ro ide for fot forthe the extension of ot credits so Improve I methods of distribution as to provide pro- pro j i I vide a better working machinery I for COt the transaction of ol the business i of the nation naton with wih the least possible j I I I friction and loss The government has been constantly constanty increasing Its is I efforts in these directions for the I relief and permanent establishment I of agriculture on a sou sound d and equal I basis with wih other business VALUE OF CROPS I It I Is that the value alue of the crops for fO this harvest year may reach which Is an an I I increase o of over in three years It I compares with wih 11 1 i I in 1913 and if J we male make I I deduction from 1101 the figures of 1924 j I for the comparatively decreased alI value val al alue al I I ue of the dollar the yield this year yer still sUI exceeds 1913 In purchasing I power by over and In lit this interval there has lla been no increase increase in- in j crease In the number of farmers I III II Mostly osty b by his own effort the r farmer er I has decreased the cost of or production j A marked increase in the price of i ii i I his products and some decrease In inthe In the price of his supplies sha has brought I I I 1 him about to a parity with the tle rest j of or the nation naton The crop area alea of I I I this season i Is estimated at acres which Is a decline of 3 acres from front last year ear and 6 acres from 1919 This has 1 been a normal and natural application j I I I tion ton of economic laws vs which has I I I pla placed ed agriculture on a foundation I which is undeniably sound and beginning be- be beI I 1 ginning to be satisfactory SUPPLY BALANCED j A decrease in the world supply i of wheat heatha has resulted In a e very large Increase in th the price prie of ol that comI com com- I The position of all al agricultural j I tural products Indicates a better beter j balanced supply but we can not yet conclude that agriculture Is reco ered from the effects of the war period or that it Is perm permanently on ona ona ona a prosperous basis The cattle catte industry in- in has not yet recovered and andin I I I in some sections has ha been suffering suffering suffer suffer- ing from dry weather weather Ever Every ef effOt effort ef- ef fort fOt must be made both by government government govern govern- go ern j ment activity and by private agencies agen agen- I agen-I I cies des to restore and maintain agriculture agri- agri culture to a complete normal relationship rela- rela rela-j rela I with wih other industries l I It I was was on account of past depression depres- depres I I I sion slon and in spite of spie present more j jI encouraging conditions that I have e h. h i I assembled an agricultural I ence made up of those who are I representative representative rep rep- I of this great Industry in in- both its operating J Jand and economic sides Everyone knows ws that the great need ned of ot the farmer larmer is markets I The country countr is not suffering on the I side of or production Almost the tho entire entre entire en- en tire tre difficulty is on the side of |