Show Expansion Of National l Defenses Farm Board t j Favored By President Reduction Essential but Matter for Body to Use Own Judgment Flood Control Farm Relief Policies Outlined Bull Opposes McNary-II McNary McNary-Haugen McNary augen Hill Dill WASHINGTON WASHINGTON-Calling WASHINGTON Calling upon the People to continue a stern denial self In III national expenditures President Coolidge laid before congress a mod mod- rate program of expansion of the na nations nation's tion's Uon's defense and natural resources In a message which touched upon virtually all of ot the legislative Issues Which have bavo aroused interest and spec spec- elation the tho president presented views differing only in minor details from those thole he be has previously outlined on the tho major problems of farm relief t tax lax taxation x atton atlon flood oed control foreign relations ns and the state of ot the army and navy It Is gratifying to report that for th the e fourth consecutive year yar the state o othe of the union In general Is good We areat are areat areat at peace The country as ae a whole has haa had bad a prosperity never never exceeded Wages are at their highest range employment employment em C Is II plentiful Some parts o ot at agriculture and Industry have bave lags lagged edl some lome localities have suffered from fron sturm storm and flood flut such auch losses have hav e veers been absorbed without serious detriment detri ment went to our g great geat eat economic structure Stocks of goods are moderate and a wholesome caution Is prevalent Hates Rates of Interest for Industry agriculture and government have been reduced Savers Saven and investors Inventors are providing capital for new construction In Industry In and public works The purChasing purchasing pur chasing power of agriculture has in in- creased If It the tho people maintain that confidence which they are entitled to have In themselves in each other and andin andin in America a n comfortable prosperity will continue I Without constructive economy In government expenditures we should not now be enjoying the these so results or these prospects we arc oro not now physically at war some people are disposed to forget that our war debt still stilt remains The nation must make financial sacrifices accompanied by a stern self denial In public expenditures expenditures until we wo have conquered the tho disabilities of our public finance While our obligation to veterans and dependents dependents depend depend- Is large largo and continuing the heavier ier ler burden of the national debt Is beIng being be be- ing lag steadily eliminated At the end of ot this fiscal year It will be reduced from about to about Annual interest Including war wara a savings will have been reduced from to The sacrifices sac of the people the economy o othe of f the tho government are showing remarkable remarkable remarkable remark remark- able results They should be continued con for the purpose of relieving th the e nation of ot the burden of interest an and d debt and releasing revenue for Internal Inter nal nap Improvements and national devel Not ot only the amount but the rate bf of If government Interest has been r re roo e Calla CUllI Callable le ale bonds have been refunded refunded re reo funded fundel and paid so that during this year ear the average rate of Interest o othe on the present public debt for the first firs t time fell below 4 per vcr cent Keeping g the credit of ot the nation high Is a tr tremendously tre tre- profitable operation Informing congress that ho he had nn not t changed in his opposition of the Mc Me- Kary farm relief bill with it its S equalization fee he recommended in instead in in- stead a federal farm loan board wita with wit witha h a revolving fund to build up the live marketing and aid In the disposition lion tion of ot crop surpluses On tax tn revision revs revis s ion yon he stood by the treasury's program t The Tho navy he eal said l should l be e ex ex- x LL I u uy uJ me ule 01 V. cruisers f submarines airplanes and carriers as aswell aswell aswell well as the development of the merchant merchant mer chant marine marino as a second line of de tense lie He recommended that flood control bo ho confined this year ear to the lower Mis Mis- river with provision for adequate title ade quate dikes emergency spillways as and aids to navigation cautioned that this problem should be met by viewing it as a n separate national nation III question wih out attempts to link It with other proposals proposals pro pro- for river control and expansion and suggested that the people enjoy ing lag the benefits of land reclaimed by government built bulit dikes share a partial par although perhaps lighter burden of Its expense Construction of a n dam at Boulder r canyon canon In the Colorado river was fa ta favored ored by the president who nho cautioned however that every other possibility should be exhausted before the federal fed eral government becomes engaged In Inthe Inthe inthe the power business Muscle Shoals he be said should be sold to private interests in providing the tho revenues dedicated dedi Gated to agriculture through research for tor methods of more moro economical production production pro pro- production of pf centralized fertilizer Pre Ire f trence Hence should be given to proposals t tuse louse to lo o use all or part I S. S for nitrate production production tion and fertilizer manufacturing Contending that the country had at j tamed a prOf prosperity pro never exceeded and end therefore was In a position to enJoy enjoy en en- Jo Joy some of the benefits which result from Irons economy Mr Coolidge present present- PRESIDENT COOLIDGE K I na national lonal debt and warned arned that until the revenues now directed toward its reduction could be diverted to Internal Inter internal nal Improvements anti and national development devel the people veople must continue to sacrifice and the government go must continue to economize The secretary of the treasury the president said has recommended a I measure which would give us a much I better balanced system of ot taxation and without oppression produce sufficient revenue It has my complete support I IThe The president reiterated his belief In Ina I Ia a high protective tariff tarla declaring that nn any reduction of the levies would work a hardship on industry and agriculture alike Although Although but one paragraph of his measure was devoted de to prohibition the president emphasized the need for both the people and the public officials to observe the sanctions of this constitutional con provision and its resulting laws Recalling that congress and th states with one or two notable exception have lave passed adequate laws for foi enforcement nt Mr Coolidge declared de Glared that the federal authorities vr proposed posed to discharge their obligation fort fori enforcement to the full extent of their ability Railroad consolidation Is necessary to the tho welfare of both agriculture and Industry the president said In recommending recommending mending that t further legislation to facilitate this under the supervision of the interstate commerce commission be passed Vl without further delay lie also restated his desire for legislation which would world permit him to act during coal strikes Although the message was devoted almost exclusively to domestic affairs the president did Inform congress again that American intervention Inter i in n foreign lands was merely for the purpose pur par pose of protecting the lives and pro property prop erty of ot this country's nationals Ho lie defended the administrations administration's policy polley in China and Nicaragua and d the belief ballet that the controversy wit with h Mexico over oil and land laws by a or a firm adherence to our rights and a scrupulous respect respect for the sovereignty of Mexico l would be solved without Impairment of friendly feeling While the presidents president's adherence t to o his former regarding agriculture ture taro did not come as a n surprise it was we s noticeable because neither political politics 1 repercussions nor his summer In the west seemed to have affected his bis viewpoint Any sound anI and workable proposal to help the farmer ho he said would have his earnest support but he toe laid down the tho principle that It should aim to assist the till farmer to work out his own salvation socially and economically Taking the position that the farmer already already al al- ready has been assisted by a reduction of federal tuxes taxes and that agriculture was showing signs of Improving Mr Coolidge said It Is useless to propose a temporary ary expedient What Is needed Is permanency per permanency and stability Government price fixing Is Js known to be unsound and bound to result In disaster A government gov subsidy would work out In the same way Price fixing and subsidy will both increase the surplus Instead of diminishing dim diminishing It Putting the government directly di dl Into business Is merely o n combination com cocoa of and price fixing aggravated ag tog by political pressure These expedients would lead log to telling the farmer by law what and how much he should plant and where tic ho should plant it It it and w what hat and how ho much he should sell and where he should sell it The most most effective e means mans of ot dealing deaUn with surplus crops Is to reduce re re- duce duco the surplus acreage While this can not be lime dime by the Individual farmer It can be done through the organizations already In existence n J Ii the department of agriculture agriculture aD Mid especially es UI I through the banks end and others other who supply credit refusing to finance c can r rIt an acreage manifestly too large It Is III Impossible to provide by law for an assured success and prosperity for all those thoRe who engage in farming If acreage becomes over-extended over the government can not assume responsibility re ra- for It The government can can however assist cooperative associations asso asso- and other organizations In orderly marketing and handling a surplus sur plus clearly due to weather and seasonal seasonal sea sea- conditions In order to save eave the producer from preventable loss While It is probably Impossible to secure this result at a single step stev and much will have to be worked out by trial and rejection a beginning could be made by setting up a n federal board or commission of able and experienced men In marketing granting equal advantages advantages ad ad- vantages under this board buard to the various var lows ious a agricultural commodities and sections sec lions of the country giving encouragement encouragement encourage encourage- ment to the movement In agriculture and providing a revolving loan fund at moderate rate of ot interest inter est eat for the necessity y financing Such legislation would lay the foundation for a u permanent solution of the surplus surplus sur plus problem i A. A Ay y attempt to revise re laws affecting I Ithe the federal revenues Mr Coolidge declared de do- deI I dared should be approached with a desire to sustain the national budget The Immediate fruit of economy and the retirement of the public debt Is la tax reduction The annual saving In Interest between 1925 and 1929 Is Without this no bill to relieve the tho taxpayers would be bo worth pro pro- posing The three measures already enacted leave our government revenues revenues revenues reven reven- ues where they are not oppressive Exemptions have been increased until people veople make malee but Individual taxable returns so that further fur ther then reduction should be mainly for forthe forthe forthe the purpose of removing Inequalities The secretary of the treasury has rec rec- n. n non 1 nM vu o u n u U give us a much better balanced system of taxation ard aid without oppression produce sufficient revenue It has my complete support contingencies requiring money are always alwa's arising Our probable probe probable able surplus for June 30 30 is small emall A slight depression in business would greatly reduce our revenue bec because use of our present method of taxation The people ought to take no no selfish attitude attitude atti attl tude of press pressing In for removing moderate moderate ate and fair tax taxes s which might produce produce pro pro- duce a deficit We must keep our budget bud budget get balanced for each year That Is the cornerstone of our national credit the trifling trilling price we pay vay to command the lowest rate of Interest of any great power ower In the world Any surplus can be bo applied to debt reduction and debt reduction Is tax reduction Under the present circumstances It would be far better to leave the rates as they are than to enact a bill carrying the peril of a deficit This Is not a problem to tobe tobe tobe be approached in a narrow or partisan spirit All of those who participate in finding a reasonable solution will willbe willbe willbe be entitled to participate In any credit tha that accrues from it without regard to to party The congress has already demonstrated demonstrated dem demo that tax can be removed from purely political consideration consid oration into the realm of patriotic business business business busi busi- ness principles While our army is small smaIl prudence requires that It should be kept In a high state of efficiency and provided with such supplies as would permit of Its Immediate expansion The garrison garrison gar gar- rison ration has lately been Increased Recommendations for an appropriation tion of for new housing made to the previous congress failed to pass vass While most of the army Is a well housed some of ot It which is quartered quartered quay In wartime training camps is becomIng becoming becoming be be- coming poorly housed In the pas past t three years ears have been appropriated appropriated ap for reconstruction and repairs repairs re reo pairs and an authorization has been approved of ot for new housing hous lag ing under which has already al ready really been appropriated A law ha has s also been blen passed complying with th the e request of the war department allocating ing fog funds received from the sale o of f buildings and land for housing pur poses The work however Is no not t completed so that other appropriations are being recommended |