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Show Text of President Roosevelt's Message to Congress WASHINGTON, Jan. 4 0V-Tha 0V-Tha following Is tha text ef President Presi-dent Roosevelt's annual message to congress: To the Congress sf the United States: In reporting on the state ef the nation, I have felt it necessary on previous occasions to advise the congress ef disturbance abroad and of tha need of putting our own house In order In the face of storm signals from across the sea. Aa thia . seventy-sixth oongreaa opens there Is need for furthsr warning. A war which threatened to envelop en-velop the world In flames has been averted; but It baa bscoma Increasingly clsar that peace Is not assured. All About Us . . . Wars. All about us rage undeclared ware military and economic All about us grow more deadly arms-men arms-men Is military and economic. Ail about us are threats of new aggressionmilitary ag-gressionmilitary and economic Storms from abroad directly attack three Institutions indispensable indis-pensable to Americans, now aa always. The first la religion. It Is the sou res of the other two-democracy two-democracy and International good) faith. Religion, by teaching man his relationship to God, givss ths Individual Indi-vidual a aense of his own dignity and teaches him to rsspsct himself him-self by respecting his neighbors. Democracy Is Cevenant Democracy, the practice of sslf-government, sslf-government, la a covenant among f rae men to respect the rights and ""I i" ' " axa . eaasBaaaasass i iiis measwe-wsewsssssejfvaaaaaaaaaaaaas Y ;TOtf? of W 3 social and hsaltb security, civilian conservation corps activities, relief re-lief for the unemployed, or national na-tional defense. The congress alone has the power pow-er to da all thia, aa It la the appropriating ap-propriating branch of the government govern-ment The other approach to tha question ques-tion of government spending takes the position that this nation na-tion ought not to be and need not be only a eo billion dollar nation; that at thia moment It has ths men and the resources sufficient to make It at least aa (0 bilUon dollar nation. Danger Pereaeea This school of thought does not believe that It can' become an go billion dollar nation In the hear future If government cuts Its operations by one-third. It Is convinced that It we were to try It, we would Invite diaaater that we would not long remain even SO billion dollar nation. There are many complicated factors with which we have to deal, but we have learned that It la unaafe to make abrupt reductions at any time in aur net expenditure program. pro-gram. By our eommon sense action of resuming government activities last spring, wa have reversed a reoession and started the new rising tide ef prosperity and national na-tional Inoome which ws are now just beginning to enjoy. If government activities are fully maintained, there la a good prospect of aur becoming an SO billion dollar country la a very FIRST SESSION OF HOUSE IN 7CTH CONGRESS OPENS WITH PRAYER FOR DIVINE GUIDANCE Representatives stand as the) Rev. James Sbera Montgomery, chaplain, fieri Invocation liberties of their fellows. International good faith, a slitsr of democracy, springs from the will of civilised nations of men to respect the rights snd liberties liber-ties of other nations of men. In a modern civilisation, all three religion, democracy and international in-ternational good faith complement comple-ment each other. Where freedom of religion has been attacked, the attack has come from sources opposed to democracy. Where democracy baa been overthrown, the spirit of free worship has disappeared. And where religion and democracy have vanished, good faith and reason in international affaire have given way to strident ambition ambi-tion and brute force. U. 8. Retains Faith An ordering of society which relegates religion, democracy and good faith among nations to the background can find no place within it for the Ideals of tha tlenal Inoome, present tax laws will yield enough each year to balance bal-ance sack year's expenses. Osnvlettoa Aired It is my conviction thst down In their hearts the American pub-lie pub-lie industry, agriculture, finance wants thia congress to do whatever what-ever needs to be done to raise our national income to M billion dollars dol-lars year. Investing soundly must preclude spending waatefully. To guard against opportunist appropriations, appropria-tions, I havs en several ooca-. ions addressed the oongreaa en the Importance of permanent long-range planning. I hope, therefore, that following my recommendation rec-ommendation of last year, permanent per-manent agency will be set up snd authorised to report en the urgency ur-gency and desirability of ths various va-rious types ef government investment. invest-ment. Investment for prosperity can be made In a democracy. - i i N,kl. I. different from what they were X years ago. We have learned that survival can not be guaranteed by arming after the attack begins for there is new range and speed of offense. Propaganda la First We have learned that long before be-fore any overt military act, aggression ag-gression begins with preliminaries prelimina-ries of propaganda, subsidised penetration, tha loosening of ties of good will, the stirring of prejudice preju-dice and the incitement to disunion. dis-union. We have learned that Cod-fearing Cod-fearing democracies of the world which observe the sanctity of trsatiea and good faith in their dealings with other nations cannot can-not safely be Indifferent to international in-ternational lawlessness anywhere. Thev cannot foravsr let pass. world we must meet them aa one . people with a unity born of the fact that for generations those who have come to our shores, representing msny klndrede and tongues, have been welded by common opportunity into a united patriotism. If another form of government can present a united front In Its attack on a democracy, democ-racy, tha attack must be mat by a united democracy. Such a democracy de-mocracy can and must exist in the United States. A dictatorship may command the full strength of a regimented nation. But the united strength of a democratic nation can be mustered only when its people, educated by modern standards to know what la going on and where they are going, have conviction that they are receiving as large a working within the framework ef our traditional profit system. The faotors In attaining and maintaining that amount of national na-tional income are many and complicated. com-plicated. They Include more widespread understanding among business men of many changes which world conditions and technological technologi-cal Improvements have brought to our economy over the hut 10 years changes In the Interrelationship Interrela-tionship of price and volume and employment, for Instance changes of the kind in whiclj business busi-ness men are now educating themselves through epportunitlee like the so-called "monopoly Investigation." In-vestigation." They Include a perfecting of ur farm program to protect-farmers' protect-farmers' Income and consumers' to the congress to Improve the new machinery which we have permanently Installed, provided that In the process the social usefulness of tha machinery Is not destroyed or Impaired. Simplification Needed All of us agree that we should simplify and Improve laws If experience ex-perience -snd operation clearly demonstrate the need. For In-atance, In-atance, ail of us weuit better provision pro-vision for our older people under our social security legislation. For the medically needy we must provide better care. Moat of us agree that for the asks of employer and employe alike we must find ways to and factional labor strife and employer-employe disputes. Most of us recognise that none of these tools can be put to man- Frince or Peace. The united States rejects such an ordering, and retains its ancient faith. Thsre comss a time in tha affairs af-fairs of men when they must prepara to defend not their homea alone but the tenets of faith and humanity on which their churches, thsir governments and their very civilisation are founded. The de-fenss de-fenss of religion, of democracy and of good faith among nations Is all ths sams fight. To save one wa must now make up our minds to save all. We know what might happen to us of the United States if tha new philosophies of force were to encompass the other continents and invade our own. Mutual Respect Cited We, no more than other nations, na-tions, can afford to be surrounded by tha enemies of our faith and our humanity. Fortunate it is, therefore, that in this western hemisphere we have, under a common Ideal of democratic government, gov-ernment, a rich diversity of resources re-sources and of peoples functioning function-ing together In mutual respect and peace. That hemisphere, that peace, and that ideal we propose to do our share in protecting against storms from any quarter. Our people and our resources are pledged to secure that protection. without effective protest, acta of aggression against sister nations acts which automatically undermine under-mine all of us. Obviously they must proceed along practical, peaceful lines. But the mere fact that we rightly decline to intervene with arms to prevent acta of aggression doss not mean that we must act as if thsre wsre no aggression at alL Methods Are Many Words may be futile, but war la not the only meana of commanding com-manding a decent respect for the opinions of mankind. Thsre are many methods short of war, but Stronger and more affective than mere words, of bringing home to aggressor governments the aggregate ag-gregate sentiments of our own psopls. At tha very least, we can and should avoid any action, or any lack of action, which will encourage, en-courage, assist or build up an aggressor. We have learned that when we deliberately try to legislate leg-islate neutrality, our neutrality laws msy opersta unevenly and unfairly may actually give aid to an aggressor and deny it to tha victim. The instinct of self-pressrvation self-pressrvation should Warn ua that wa ought not to let that happen any more. Lesson Was Learned snare 01 opportunity tor asveiop-ment, asveiop-ment, aa large a ahare of material mate-rial success and of human dignity, dig-nity, as they have a right to receive. re-ceive. All for Defense Our natlon'a program of social snd economic reform is therefore there-fore a part of defense as basic as armamsnta thsmselves. Against the background of events In Europe, In Africa and in Asia during these recent years, ths pattern of what we have accomplished ac-complished sines 1M3 appears in even clearer focus. For ths first tims ws hsvs moved upon deep-seated problems prob-lems affecting our national atrength and have forged national na-tional Instruments sdequste to meet them. Consider whst the seemingly piecemeal atrugglea of these six years add up to in Urma of realistic realis-tic national preparedness. We are conssrving and developing develop-ing natural resources land, water, wa-ter, power, forests. We are trying to provide neces-ssry neces-ssry food, shelter snd medical care for the health of our population. popu-lation. Sounder Baals Seen We are putting agriculture our system of food and fiber supply-on supply-on a aounder basis. a; - . , , m uisie tows can oe put to maximum maxi-mum effectiveness unless the executive ex-ecutive processes of government are revamped reorganised, If .you will into mors effective combination. combi-nation. And even after such reorganisation re-organisation It will take time to develop administrative personnel and experience in order to use our new too la with a minimum of mistakes. Ths congress, of courts, needa no further information on this. Objective Reached With this exception of legislation legisla-tion to provide greater government govern-ment efficiency, and with tha exception ex-ception of legislation to ameliorate our railroad and other transportation transpor-tation problems, the past three congresses have met in part or In whole the pressing needs of the new order of things. We have now passed ths period of Internal conflict In the launching launch-ing of our program of soclsl reform. re-form. Our full snsrgies may now be released to Invigorate the processes proc-esses of recovery In order to preserve pre-serve our reforms, snd to givs every man and woman who wants to work a real Job at living wage. But time la of paramount importance. im-portance. The deadline of danger from within and from without is not within our control. The hour-class hour-class msv be in the hands of purcnasing power rrom alternate risks of crop gluts and crop shortages. They include wholehearted acceptance ac-ceptance of new atandarda of honesty in our financial markets. Concord Wanted They Include reconciliation of enormous, antagonistic Intereats some of them long In litigation litiga-tion in tha railroad and general transportation field. They Include the working out f new techniques private, stats and federal to protect the public pub-lic interest in and to develop wider markets for slectrlo power.- They Include revamping of the tax relationship between federal, fed-eral, stats and local units of gov' srnment, and consideration of relatively smsll tax Increases to adjust lnsqualitlea without Interfering Inter-fering with the aggregate Income of the American people. They include the perfecting of labor organisations and universal univer-sal ungrudging attitude by employers em-ployers toward the labor movement, move-ment, until there is a minimum of Interruption of production and employment because of disputes, and acceptance by labor of the truth that the welfare of labor itself dependa on Increased balanced bal-anced output of goods. Tools Must Be Used BV nuue in a aimvcrwy. I hear some people say "this Is all so complicated. Thsre are certain cer-tain advantages in a dictatorship. It gats rid of labor trouble, of unemployment, of wasted motion snd of having to da your swn thinking." Admits On Feint My answsr Is "Yes, but It sis gats rid of soms other things which ws Americans Intend vary definitely to keep and we still Intend to da our own thinking." It will cost ua taxea and ths voluntary risk ef capital to attain at-tain soma of ths practical advantages advan-tages which other forms of government gov-ernment have acquired." Dictatorships, however, Involve In-volve costs- which ths American people will never pay: The coat of our spiritual values. The cost of the bleaeed right of being able to say what ws pie ass. The cost of freedom ef religion. The oost of seeing our capital conflecat- ' ed. The coet of being cast Into a concentration camp. The coet of being afraid to walk down the street with the wrong neighbor. The coet of having our children brought up not aa free and dignified dig-nified human beings, but as pawns molded and enslaved by a machine. If the avoidance of these costs msans. taxes an my Income; If avoiding theae costs means taxes on my estate at death, I would bear those taxes willingly as ths price ef my breathing and my children breathing ths free air ef a tree country, as ths pries ef living and not a dead world. Cvents abroad have made It increasingly in-creasingly clear to the American people that dangers within are less to be feared than dangera from without. If therefore a solution so-lution of this problem of Idle men nd Idle capital Is ths pries af preserving liberty, no formless selfish fears can stand la aur way. ' Ones I propheeted that thia generation of Americans had a rendasvoua with destiny. That prophesy somes true. To us much is given; mors Is expected. This generation wig "nobly save r meanly loss the last beet hop of earth ... the way la plain, peaceful, generous, just a way which If followed the world will -forever applaud and Cod aeust forever bless." rrom mat oetermination no American flinches. This by no means Implies that the American republics disassociate disasso-ciate thsmselves from the nations of other continents It does not mesn ths Americas against the rest of the world. Wa as one of ths republics reiterate our willingness willing-ness to help tha cause of world peace. We stand on our historio offer to take counsel with all other nstions of the world to the end that aggression among them be terminated, that the race of armamsnta cease and that commerce com-merce ba renewed. World Grows Smsll But ths world bsa grown so small and weapons of attack so swift that no nation can be aafe in Its will to pescs so long ss sny other single powerful nation refuses to settle its grievances at the council table. For If any government bristling with implements of wsr Insists on policies of force, weapons of defense de-fense give ths only safety. In our foreign relations wa have learned from the past what not to do. From new wars ws have learned what we must do. We have learned that effective timing of defense, and tha distant dis-tant points from which sttacks msy be launched are completely Ana we nave learnea somstning else ths old, old lesson that probability of attack is mightily dscraassd by tha aasurance of an ever rsady dafenae. Since 1931 world eventa of thunderous Import Im-port have moved with lightning speed. During these eight years many of our people clung to the hope that tha Innate decency of mankind would protect tha unprepared un-prepared who ahowed their innate in-nate trust of mankind. Today we are all wiser and sadder. Under modern conditions what we mean by "adequate defense" a policy subscribed to by all-must all-must bs divided Into three elements. ele-ments. First, ws must have armed forces and defenses strong enough to ward off suddsn attack at-tack against strstagic positions and key facilities esssntial to Insure In-sure sustsinsd rssistsncs snd ultimate victory. Secondly, we must have tha organisation and location of thoaa ksy facilities so that they may be Immediately utilised and rapidly expanded to meet all needs without danger of ssrious interruption by enemy attack. Special Meaaage Due In the course of a few days I shsll send you a special message making recommendations for those two assentiala of defense against danger which we cannot aafely assume will not come. If these first two etsentisls are reasonably provided for, ws must bs able confidently to Invoke In-voke the third element, the underlying un-derlying strength of citisenship ths self-confidence, the ability, the Imagination and the devotion that give the staying power to see things through. A strong and united nation may be destroyed If It Is unprepared against sudden sttsck. But even a nation well armed and well organised or-ganised from a strictly military standpoint may, aftsr a period of time, meet defeat if it is un-t un-t nerved by self-distrust, endangered endan-gered by class prsjudics, by dissension dis-sension between capital and labor, by falsa economy and by other unsolved social problems at borne. Unity Needed In meeting ths troubles of the ' - iiviiKinemng me weakest apot in our system of industrial supply Its long smoldering smol-dering labor difficulties. Wa have cleaned up our credit system so that depositor and investor in-vestor alike may mors readily and willingly make thsir capital available avail-able for peace or war. We are giving to our youth new opportunities for work and education. educa-tion. Sustain Morale We have sustained tha morale of aU the population by tha dignified dig-nified recognition of our obligations obliga-tions to the aged, ths helpless snd ths needy. Above all, we have made tha American people conscious of their Interrelationship and their interdependence. They ssnse a common destiny and a common need of each other. Differences of occupation, geography, race and religion no longer obscure the nation's fundamental unity in thought and in action. Wa have our difficulties, true-but true-but we are a wiser and a tougher nation than wa were in 12, or 132. Never havs there been six years of such far-flung internal preparedness pre-paredness in our history. And all this has been done without sny chelator's power to command, without conscription of labor or confiscation of capital, without concentration camps, and without a scratch on freedom of speech, freedom of the press or ths rest of ths bii of rights. Tools Outmoded Ws see things now that wa could not aee along tha way. The tools of government which we had In 1938 are outmoded. We have had to forge new tools for a new role of government In democracy a role of new responsibility re-sponsibility for new needs and increased responsibility for old needs, long neglected. Some of these tools hsd to be roughly sheped and still need some machining down. Many of those who fought bitterly against the forging of these new tools welcome their use todsy. Ths American people, as a whole, havs , accepted them. Ths nation looks other nalione. Our own hourglass hour-glass tells us thst ws srs off on a rsca to make democracy work, eo that wa may ba efficient In peace and therefore secure In self-defense. self-defense. Tims Factor Sera This tims element forces us ta stiU greater efforts to attain tha full employment of our labor and our capital. The first duty of our statesmanship states-manship today ia to bring capital and manpower together. Dictatorships do this by main force. By using main force they apparently succeed at It for the moment. However we abhor their methods, we srs compelled to ed-mit ed-mit that thsy have obtained substantial sub-stantial utilisation of all thsir materiel and human resources. Like It or not, thsy have solved, for a time at least, the problem of Idle men snd Idle capital. Can wa compete with them by boldly seeking methods of putting idls man snd Idls cspitsl together, snd st the same time remain within our American way of life, within the bill of rights, and within the bounds of what ia. from our point of view, civilisation itself? Capital Ia Unemployed We suffer from a groat unemployment unem-ployment of capital. Many people have the idea that as a nation we are overburdened with debt and are spending more than wo can afford. That is not so. Ds-spits Ds-spits our federal government expenditures, ex-penditures, ths entire debt of our national economic system, ptrbUo and private together, is no larger today than It wss In 192. and ths Interest thereon Is far lass than It wss In 1B2S. Ths object Is to put capital private as well as public to work. We want to get enough capital and labor at work to give us a total turnover of business, a total national income, of at least eighty billion dollars a year. At that figure we shall have a suhstsn-tlsl suhstsn-tlsl reduction of unemployment; snd the federsl revenues will be sufficient to balance the current level of c.h expenditures on the basis of the existing tax structure. struc-ture. That figure can be attained, in ua iiiuiicutaiciy jibiiium, while proceeding with a ateady evolution In the solving of these and like problems, ws must wlssly usa instrumentalities, like federal investment, which are Immediately Immediate-ly available to us. Here, ss elsewhere, time ia ths deciding fsctor In our choice of remedies. Therefore, It does not seem logical log-ical to me, at the moment ws seek to increase production and consumption, for the federal government gov-ernment to consider a drastic cur-tsilmsnt cur-tsilmsnt of Its own investments. The whole subject of government govern-ment Investing snd government Income is ons which msy be approached ap-proached In two different ways. The flrat calls for ths elimination elimina-tion of enough activities of government gov-ernment to bring ths sxpenses of government Immediately Into balance bal-ance with income of government Theory Outlined This school of thought maintains main-tains that because our nstlonsl income in-come this year Is only 80 billion dollars, ours is only a 60 billion dollar country; that government must trsat it ss such; and that without the help of government. It may aome day, somehow, hep-pen hep-pen to become an 80 billion dollar dol-lar country. If tha congreas decides to accept ac-cept this point of view, it will log-icslly log-icslly havs to reduce the present functions or actlvltiea of government govern-ment by one-third. The congress will havs to accept tha responsibility responsi-bility for such reduction; and tha congress will hsvs to determine which activities srs to be reduced. Certain expenditures ws csnnot poasibly reduce, such as ths Interest In-terest on the publio debt A few million dollars ssved here or there In the normal or In curtailed cur-tailed work of tha old departments depart-ments snd commissions will make no great ssvlng In, ths federal budget Course Explained Therefore, tha congress would havs to reduce drastically soma of certain large items, such as aids to agriculture and soil ron-feervatlon. ron-feervatlon. veterans' pens.ons. flood control, highways, waterways snd other public works, giants for |