Show T President Coolidge i Delivers Annual al Message to C 9 Full Ful Text of Address J The full ful text of the presidents president's message is i s as follows By B y Associated Press V Members of Congress I 6 In meeting the tho constitutional re- re f of Informing tho the congress congress con con- grel gress upon the state of ot tho Union It I is exceedingly gratifying to re report r- r ie- ie port that the general condition Js Is one of ot progress and prosper prosperity lere ere and there are comparatively and Mh mal nall ad Apparently temporary an difficulties needing adjustment and Improved administrative methods d uen as are always to be expected SUCh but ut t In the tho fundamentals of ot govern- govern j ent ii ment and business the results demonstrate demonstrate dem- dem that we are going In the direction The he he country county does doesT T L t appear appear to require Ta radical a lIcal departures departures de- de from the policies already f. f adopted so much as it i needs a a furher further fur- fur her ther extension of ot these policies and II the he Improvement of ot details The Theof ge go of ot perfection Is still in the I somewhat distant future but it is 4 snore more in In dang danger r of f being being retarded 1 mistaken government activity Jj iljan fn from l lack Isek k of legislation WI We Wp r. r are by far Tiie most likely Jely to accomplish ac- ac permanent good If 1 we proceed pro- pro L id with wih moderation a In n our country the people are and Independent and a must accept the tho resulting t It I is their duty to support t themselves and support the gov- gov That is I the business of ot CJ the nation naton whatever tho the charity of I 4 t the e nat nation n. n n may y require The fu c- c J I tons which the congress are aru to u u discharge dis- dis those of local t f charge are not gov- gov t f but of ot national govern- govern The greatest solicitude should be bg be exercised to prevent any encroachment en- en upon the rights of the tates or their various political subdivisions Local self govern self self-gover- ment Is one of our most precious possessions It I is the greatest contributing factor to the stability th liberty and ad progress of ot r the nation It I ought not to be in infringed infringed In- In fringed by assault assaul or undermined T b by purchase It I ought not to abdi- abdi cate Its power through weakness or orUs resin Us iti Ia authority through favor n does not at nil all nl follow that b because because be- be cause abuses exist it is the concern cause ot the the federal government to attempt at- at I tempt their reform FUNCTION FUNCTION AREA LIMITED Society is In fri more danger from encumbering the national beyond its Is wisdom m to I jp comprehend or UH I. I ability to administer administer ad- ad MT minister than from leaving the low lo- lo w eel ral Ial communities to t bear their own burdens and remedy their own evils Cur local habit nod and custom is Js so strong our variety of ot race and ad and 0 creed is ro FO great the federal au- au Is so 0 tenuous that the area I within which it I can function suc suc- c js ja very limited The Th wis wiser r policy is to leave the localities so soar ar ar a as w wu WI cun can possessed possesse o of or lapi I fawn wn our es of revenue re au and charged with wIh their own obligation te lt Is Js o. o a. a fundamental fundamental prin c o of I IOu our tw-our Ou our country that the people are sovereign While they recognize I the he undeniable authority of the Mutate state they have havo established as s its Is I instrument tate instrument a government of ot limited Dowers They hold Inviolate I in I ih their their lr own wn h hands the Jurisdiction ver their own fre freedom freEdom dom an and l the ownership of their own prop property NeIther of these can cali cal be le impaired ex except ept b by due process of law The he of our country Is not public tan wealth but private wealth It I does not belong to the government It Jt be- be to the people The govern govern- ment has no Justification ii In JI taking property property except for a public pu pm v p se It I is always necessary to keep th these se principles i In 11 mind In the levying levy levy- ing ip of or taxes and in the making of ot appropriations No right TIght exists to levy on ft a a dollar olar or to t order th the expenditure of a n dollar dolar of th the money of the people except for a aiT I iT sary ary public purpose duly au- au by the constitution The TheS S po ver over the purse is the power over lbert liberty 1 LEGAL EGAL LIMITATION h t Is the legal n within within with with- wih- wih in tn which the congress can act How I t will wi proceed within this JUon Oon Uon i il is always a question queston of policy the c country is s prosperous and free tree from debt when the rate of ot t taxation ton Is low opportunity exists i J f assuming new burdens and Un Undertaking tin un- new enterprises Such a condition now prevails pre als only to a limited extent All AU proposals for assuming new obligations ought to I e e postponed unless they are re- re re-I re capital investments or oraie are aie such as are 10 absolutely airy rY at this time We e still sun have an I debt of over oooo on which the interest and fund requirements are Our appropriations I for fiST the pension office and and the veterans veterans' vet vet- erans' erans ns' ns bureau are The ivar var and and nay navy departments call can fo Other requirements of the post office which I i 13 virtually sustaining self sel brought the the the appropriations for the current y yew up to almost almot This an expenditure re o 0 o close t 30 for or cv every ry inhabitant o of ou our Ott I count country For I.- the average CamB family of t five it ft means a tax directly o 0 indirectly in- in directly pid pd of about 50 for tOl cc na- na honal purposes alone The local lX x adds much more These enormous enor- enor elor s. s expenditures ought not to o be increased but through every pos- pos effort they ought to bo be bo bore re- re one of ot these great items can be ultimately extinguished I That is the I item m of ot our war debt Already Already t this I has been een reduced by which means art r annual saving in Interest of 01 close Clos t to The present interest charge Is about It would seem to be obvious tat the sooner this debt can be retired the more the taxpayers willave will aYe ave in interest and the tho easier easter T I. I l vl be to secure funds with which do to prosecute running wih expenses constructions and improvements Item Iem of for Interest Interest Inter- Inter est est Is a n heavy heavy charge on all al tho the people people o o of the country and it I seems seers to me that we might well wel consider Whether it I Is not greatly greaty worth Jle to dispense with wih it I as early 1 a aF possible by retiring the principal prin- prin cipal debt which which- It is required to to serve EXTENSION PROPOS PROPOSED D. D It lt has ha always always' been our policy retire our debts That Of f the 7 i Revolutionary war period tho the additions m made de in 1812 r t j II I I 91 was paid b by 1835 and the Civil CIvi war I debt within twenty twenty-t twenty three ree years Of the amount already already paid over 1 is a reduction in cash ch balances That source is exhaust exhaust- ed Over one and two bil billions billions bi- bi bil- bil lions lons of at dollars was derived from excess receipts Tax reduction eliminates elm elm- dim elim mates that The sale of surplus war materials has ha been another clement ole cle ment of ot our Income That Is practically finished With these elIminated eliminated elmi- elmi the reduction n of or the debt has bs been only about each ech year not an excessive sum on so 50 large a debt debt Proposals have been made to extend extend extend ex ex- ex- ex tend the payment over a a period of ot two sixty-two years If I i lJ 13 paid at the end of ot twenty years er the cost to the te taxpayers is the principal principal prin prin- I cipal and if I the interest is lA 4 4 1 per cent a n total of It I the same Bame sum is 18 paid pad at the end o of two sixty-two years tho the cost is or almost double Here is another consideration Compared with Its Us purchasing power In 1913 1013 the dollar dolar we ve borrowed represented represent represent- ed od but 52 cents As the V value lue of ou our dollar dolar increases due to to falling prices pries of ot commodities the burten of ot our debt increases It I has hu now 63 2 1 cents Tle The taxpayer r will wJ J be e required to produce nearly I j twice the amount of commodities to pay pay his debt if I the dollar dolar return to tho the 1013 value T The Tio e more wo we pay y while prices are high the easier it I will be Deflation of ot government after atter a i l iwar lW I W war U period is slower than deflation of ot business where curtailment Is Js either cither prompt and effective or disaster disaster disaster dis dis- aster follows There is for further economy in the post cost of ot the federal government but a a comparison compari compari- son of current expenditures with wih prewar expenditures expenditure Is not unfavorable unta- unta to the efficiency with wih which government business Is la now being done The expenditures of ot 1910 1916 1911 the thelast thelast thelast last prewar year were and in 1925 over or nearly five times as great great If I we subtract expenditures for d debt bt re retirements retirements re- re and interest veterans' veterans re relief re- re lief lef Increase o of pensions and other special outlays consisting of re refunds reo re- I funds trust investments and like charges we fin find that the gentral genEral I expenditures of 01 the government In 1925 were slightly more than twice as large as in 1916 EXPENSES INCREASE As As' prices pries in 1925 were approximately approximately approximately 40 per cent higher than in 1816 1916 the Ute cost of ot the same government govern govern- gOYer- gOYer ment must also have Increased But the government is not the same It I is more expensive to collect the much greater revenue necessary am and to administer our great debt We Ve h have ve given enlarged and Improved ed services services' to agriculture and com corn merce Above ell all 61 America AmerIc has grown Jn In n population and wealth Government expenditures must al always always always al- al ways share share in this growth TakIng TakIng Tak- Tak ing into account the factors factor's factor I have hava hav mentioned I believe beleve that present preset federal e expenses are not far tar o out t of t lne line with prewar expenses We have nearly accomplished the de de- f ton I This does des not mean that further economics economies will wl not come As w we I reduce our debt our Interest charges decline There are are many details I I yet to correct The real 1 improve improvement improve improve- ment tent however must come rea improve improve-I not from rom I I additional curtailment of ot expenses ses but by y a a more Intelligent more 0 ordered or or- dered spending Our economy must I be constructive While we should avoid as far as possible increases in permanent current expenditures I oftentimes a n capital outlay like internal in- in 1 Improvements will wiil wi result resul Inac in ac actual ual constructive saving That in-I in is I economy In Its ia best sense It I is an avoidance of ot wate waste aaste that there may I IbE I be bE the means for an outlay today today I which i will wl bring larger returns to- to to 1 i We Ve should constantly constanty to I I engage in scientific studies of our i I future requirements and adopt an I I orderly ordery program for tor their service servie- i I Economy is the method toy y which we prepare today to afford to-afford afford the hit Jm- Im 1 I of tomorrow BUREAU OF BUDGET A mere policy of economy without without with with- out any instrumentalities for putting put put- ting It I Into operation would be very ineffective The congress has wise I ly Iy set up the bureau of the budget to Investigate and Inform the presIdent president pres pres- ident what rec recommendations he ought to make for tor current This gives a a centralized au au- au where a l general and comprehensive comprehensive com corn understanding can cart bo bt reached of ot the sources of Intone income i and the most equitable distribution of ot expenditures How well wel it ft I has worked is Js indicated by the fact tact that I the departmental estimates for 1922 before the budget law Jaw were while the budget estimates for tor 1927 1921 are re This latter latter lat lat- ter figure shows the reductions In departmental estimates for the Ute coming coming com com- I ing big year made possible by the opel opec oper- i of oC the budget system that the I congress has provided But It 1 Is evidently not enough to tu have hae care In making appropriations without any restraint upon expenditure expenditure expendi expendi- ture The congress has provided that check by establishing the of ot- ot flee fice of ot controller general The Thc purpose of maintaining the budget director and the controller general is to secure economy and efficiency in government expendi expendi- ture No better beter method has been devised for the accomplishment of ot that end These offices cannot be administered red in all 01 th the varo various s do- do tails taus without making some errors ce- ce both bothof of fact and of Judgment But Bat the important consideration that these are the ties of ot the congress tes and that no nf other plan has ever been adopted which was so successful in fri ing economy and efficiency The congress has absolute authority I over the appropriations and is freo to exercise its is Judgment as the i evidence may warrant in Increasing increasing ing or decreasing budget But it I ought to resist every effort efort to weaken or break down this most beneficial system system of ot supervisIng supervising ing appropriations and expenditures expenditures expendi expendi- tures Without it I all aU the claim o of or economy would be a mere pretense REGARDING TAXATION The purpose of ot reducing expenditures expenditures expenditures expendi expendi- tures I Is Is' Is to S secure curo a reduction in taxes That purpOse se Is about to be he realized With Commendable the he ways wayt waYt and menns means committee of f the house has under- under c I taken taen in advance ance of the meeting of ot tho the congress to frame a a. 0 revenue act As S the bill bi has proceeded through the committee It I has taken on a a nonpartisan character character and both Republicans and Demo Democrats at have hav Joined In n a measure which embodies many may sound principles of 01 tax re re- re form The bill bi will wi correct substantially substantially taly the economic defects detects injected into the revenue act of 1924 as well wel as many which have remained as war time war legacies In its present form It I should provide sufficient revenue for the government The excessive surtaxes have been reduced estate tax rates are re restored restored re- re e- e stored to more reasonable figures With wih ever every prospect of ot withdrawing from the field when the states have had the opportunity to correct the abuses in their own Inheritance ta tax laws tho tim gift gif tax and publicity section sec see tion ton are to be repealed many miscellaneous miscellaneous mis mis- taxes are lowered or abandoned and the board of ot tax appeals appeals ap appeals ap- ap peals and the administrative features features fea tea tures of ot the law are ore Improved and strengthened I approve of ot the bill billin bi in principle In so far as Income tax exemptions are concerned it seems to m me the committee has gone as asfar asfar 18 far tar a as it I Is safe sae to go and somewhat further than I should have gone Any further extension along these lines would In my my- opinion impair the Integrity of ot our income tax |