| Show dext af HARDINGS SPECIAL MESSAGE international and domestic problems discussed at length by president REJECTS LEAGUE OF NATIONS declares this nation will have no part in existing league recommends attention to tariff and tax revision and railways I 1 washington inston april 12 the te text at of 0 ir president resident Ilar dings message to con coil gr ess follows 11 members embers of of the you have beet called into extraordinary oil inary session tes sion to ghe your consideration to national problems problem far too pressing to be long neglected we face our task of legislation and administration amid conditions as difficult as our government ever contemplated under our political system the people of the united states have charged the new congress and the new administration with the solution the readjustment reconstruction and restoration which must follow in the wake ot of wo war r invite all to join it lay imay be regretted that we were so illy prepared for war wars s aftermath to so little made ready to ret return to the aftos ot of peace but we are not to be discouraged indeed we must be the more firmly resolved to undertake our work with high hope and invite aery factor in our citizenship to join in the effort to find our normal duward way again american people have appraised jt the situation and N w ith that tolerance and patience which go with understanding they will III give to us the influence ot of deliberate public opinion aich ultimately becomes the edict of illy popular government they are measuring soure some of tile stern necessities and will join in the give and take which is so essential to firm lish ment home problems first in mind must be the solution of our problems at home even though some phases of them are inseparably linked with our foreign relations the surest procedure in every government it to put its own house in order I 1 know of no do more pressing rin folin at home than to retract restrict our no na lonal ional expenditures within the limits ol of our rational uati nati onal oDal in income coine and at the ime time measurably lift the burdens if t war taxation from the shoulders 0 the American people one cannot be unmindful that economy is a much employed cry most frequently stressed in pre election els als but it is ours to make it an ut standing and ever impelling pur loose in both legislation and adminis i aaion tile the unrestrained tendencies to be heedless edless expenditure and the at londing growth of public indebtedness extending from federal authority to that of state and municipality and in luding the smallest political subdivision sion constitute the most dangerous iliae of government today nation as exemplar the cannot restrain except in its own activities but it can be exemplar in a AN wholesome holesome reversal the staggering load of 0 w war debt roust must be cared for in orderly funding and gradual liquidation we shall hasten the solution and aid effectively in lifting the tax burdens if we strike r sol rol at expenditure it is far more easily said than done ir in the ferver of war mar our expenditures were viere ko io little questioned the emergency was so impelling appropriation was so unimpeded that we little noted millions and counted tile the treasury inexhaustible it will strengthen it we ever keep in manil that a continuation of such a course means inevitable disaster our current expenditures are running at the rate of approximately 3 5 a year and n the burden is i s unbearable there are two agencies to be employed in correction one is rigid resistance in appropriation and tile I 1 lie other is the utmost economy in ill nd ministration let us have bave both I 1 have already charged department heads with ith this necessity I 1 am sure ciure angres on gres vo will ill agree and both congress and tile alie administration may safety aunt on the support tup port of all right mind 1 biens because the burden is ii thel thrift for all I 1 tile the pressure tor for swelling the flow in one locality while another is bure to defeat the imposition of just burdens and the ef to rot our protesting protes tins out in lr vill be wholesome and belp helpful ful I 1 v sh it find its reflex in hi economy and thrift among the people thim them elve because therein lies quicker rene 0 o e ind added security se curil curit tor for the future th e estimates of receipts and ex ture and itle alie statements R os 4 to tit the ondi condition tion of the treasury which the he e detary of the treasury Is prepared to lo lo present resent to you will ill indicate noobar revenues must he prodded ded in ill orde to carlyon carryon car ryon tile hie governments hw ewins ins s und ineat its current require ind fixed debt charges unless the lu irp ir striking cuts in the import HU flu oid id af expenditures receipts receipt a fron taxes cannot afeld be pe lie fitted to full falt below lip in ie 0 1 I tit al N ear 1 i nud and 1921 cost of living on oil ho values american prosper per lt ft ind maintains american manfurd Man durd of ige and 11 ong can have no sym path iti ill tile proposal that easy en try knot ind riold of imports will cheapen out oui n ol of living it Is more likely to de dc 0 out oui opacity to buy today toda arne ame is menaced and am it prod ur art dooin to nor mal are our one fun i damen da mental tat industry through the high cost of 0 transportation front farm to market and through tile the influx of foreign farm products because we otter offer essentially tile best market in the world it would be better to err in protecting our basic food industry flinn paralyze our farni farm activities to iu tile lie world struggle for restored exchanges the ion iua revision of our tariff laws should be based on oil the policy of pro tec lection tion resisting that selfishness which turns to greed but ever concerned with that hint productivity at home w litch is the source ot of till nil abiding rood good fortune to sell and buy it Is agreed reed that we e cannot sell iiii lesne lesille les ille bill liay but ability to sell is based an on home development and the fostering ot of home markets there Is little sentiment in the trade of the world trade cau can and ought to be honorable but it knows no sympathy 1 tile the delegates ot of the nations at war or were debating peace terms tit at parts paris anil and while we later debated our part in completing the pence commercial agents of other nations were opening their lines and establishing their outposts with a forward look to the morrows trade it was w holly proper and has been advantageous to them tardy as we are it A w ill III be safer to hold ibold our own onn markets secure and build the thereon recill for our trade with tile the world A i ery cry important matter is the e establishment ot of the governments business on a business basis there was toleration and the easy going unsystematic tenia tic metho hoof dot handling our fiscal affairs when indirect taxation held the public unmindful of the federal burden but there is knowledge of the high cost of government today and the high cost of 0 lii pg Is inseparably linked with high ost cost of government there ther cah lie be no complete correction of UK high living ost cot c until governments cos is notably reduced budget system let me most heartily commend the enactment of legislation providing for the national budget system congress has already recorded Us its belief in the budget it will be a very great satisfaction to know of its early enactment so 30 that it may be employed in establishing the economies and business methods so essential to the minimum of expenditure I 1 have said to the people we meant to have less of government in business n as well as more business in government it is well to have it understood that business has a right to pursue its normal legitimate and righteous way unimpeded and it ought have no call to meet government competition cherl all risk Is borne by the public treasury reducing costs there is no challenge to honest and lawful business success cut but government approval of fortunate untrammeled business does docs not mean toleration of restraint of trade or ot of maintained prices by unnatural methods it it well to have legitimate business understand der stand that a just government mindful of the interests of all the people has a right to expect ex the operation cooperation co of that legitimate business in stamping out the practices which add to unrest and inspire restrictive legislation anxious tn as we are to store restore the onward flow of business it Is fair to combine assurance and vi warning arning in one utterance v I 1 one condition in the business world may well receive your inquiry deflation has been in progress but has failed to reach the mark where here m it can be proclaimed to the great mass of consumers reduced cost of basic production lias has been recorded but high cost of living has not yielded in like proportion for example the prices on grain and livestock have been deflated but the cost of butter and meats Is not actually reflected therein it is 0 EO o be expected that nonperishable staples will be slow in yielding to lowered prices but the maintained retail costs in perishable foods cannot be ju justified stifled cause of trouble I 1 have asked the federal trade commission for a report on its observations and it attributes in the main tile failure to adjust consumers cost to basic production costs to the exchange of information by open price associations which operate evidently within the law to the very great advantage of their members and equal disadvantage to the consuming public without the spirit of hostility or haste in accusation of profiteering some suitable inquiry by congress might inight speed the price readjustment to normal relationship with helpfulness of both producer and consumer at A measuring rod of fair prices will avill satisfy the country and give us a business revival to end all depression and un on amplo anent rail problem the great interest of both belli the producer and consumer indeed all our lodus industrial trial and commercial life front froin agriculture culture to finance in the problems of transportation will find its reflex in your concern to aid reestablish establish re ment to restore efficiency arid and brin bring transportation cost into a helpful I 1 relationship lation latic ship rather than continue it as a hindrance to resumed activities it ts Is little to be wondered that ill considered legislation the war strain operation in heedlessness of cost and the conflicting programs or alie lack of them em for restoration have brought about a most difficult situation made doubly difficult by the low tide of business bu gine all are so intimately related that no improvement wilt will be permanent until the railways are operated efficiently at a cost within that which the traffic can call bear must reduce rates 9 if we me van can have it understood that congress c n agres lias has no sanction for government ownership that congress reas does not levy taxes upon the people to to over cover deficits tit in it a service which should bo be self sustaining there will ill be an avowed foundation on oil which illich to rebuild freight carrying charges have mounted higher and ami higher until corn commerce is halted and production discouraged cou raged It allway rates and costs of operation must be reduced congress may well investigate and let the public understand wherein our system and the federal regulations are lacking in helpfulness or hindering in restrictions the remaining obstacles which are the herl tance of capitalistic exploitation must be removed arid ami labor must join management in understanding der standing that the public which pays Is the public to be served and simple justice Is tile he right and will continue to be tile the right of all the people highway building transportation kraii over the high highways was Is if little less important but the problems title to construction development and and deserve bour our most earnest intention becu because Zise we ive are laying a foundation for a long time little to lo cot tome 1 1 e 1 and nil the creation is very difficult t to 1 hiie visualize uI Ie in its great responsibilities tile highways axe are a re not only feeders to lo the lie railroads and afford relief ellef floru their local burdens they are actually lines ot of motor traffic in commerce they are the smaller arteries of tile hie larger portion of our conini commerce erce and tile the motor car has become an indispensable instrument in our political social and industrial life federal assistance there is begun a new era in highway construction I 1 tile the outlay tor for jil which willell lell runs far into hundreds of 0 millions of dollars bund bond issues by road districts counties and states s tates amount to enormous figures and the country Is facing jig such an outlay that it Is vital that every effort shull shall be directed against wasted effort and unjustifiable expenditure pend iture the federal government can place no inhibition on the expenditure in III several states but since congress has embarked upon a policy of assisting the states in highway improvement wisely I 1 believe it can assert a wholly becoming influence in III shaping policy general supervision with the principle of federal participation acceptably established probably never to be abandoned abandon edIt it is important import port t to exert federal influence in arevelo developing deve roping ping comp comprehensive plans looking to the promotion of commerce and apply our expenditures in tile surest way to guarantee a public return tor for money expended large federal outlay demands a federal voice in the pr program of expenditure pend iture congress cannot justify a mere gift from the federal purse to the several states to be prorated among counties for road betterment such a course will invite abuses which it were better to guard against in the beginning the laws governing federal aid should be amended and strengthened the federal ag gency agency ot of administration should be elevated to the importance and vested with authority comparable to the work before it and congress ought to prescribe conditions condition to federal appropriations which wilt will necessitate a consistent program ot of uniformity which will justify the federal outlay constant repair I 1 know inow of nothing more shocking than the millions of public funds avast wasted in lin improved proved highways wasted because there is no policy of 0 maintenance the neglect Is not universal but it Is very near it there is nothing congress can do more effectively to end this shocking waste than condition all federal aid on provisions for maintenance highways no matter how generous the outlay for construction cannot be maintained without olt hout patrol and constant repair such conditions insisted upon in the grant of federal aid will safeguard the public which pays and guard the federal government against political abuses which tend to defeat the very purposes for which we authorize federal expenditure merchant marine linked with rail and highway Is the problem of water transportation inland coastwise and transoceanic it Is not cot possible on this occasion to suggest to congress the additional legislation needful to meet the aspirations aspiration A of our people tor for a merchant marine in the emergency of barwe warwe war we have constructed ted it a tonnage equaling our largest expectations its war nar cost must be discounted to the actual values of peace and the large difference charged to the war emergency and the pressing task Is to turn our assets in tonnage to an agency of commerce it is not necessary to say it to congress but I 1 have thought this to be a befitting occasion to give notice that the united states means to establish and maintain a great merchant matine marine marine laws manifestly if our laws |
