Jasper County Democrat, Volume 22, Number 72, Rensselaer, Jasper County, 6 December 1919 — WILSON’S MESSAGE READ TO CONGRESS [ARTICLE]

WILSON’S MESSAGE READ TO CONGRESS

President First Urges the Adoption of a Federal Budget System. PEACE TREATY NOT TOUCHED Revision of Income and Profile Taxes la Suggested—Country Muet Abandon Provincial BusineM Standards—Unreal and Its Causes. Washington, Dec. 2. —President Wilson’s message to the sixty-sixth congress was read to that body today. The .text of the message follows: To the Senate and House of Representatives : I sincerely regret I cannot be present at the opening bf this session of the congress. I am thus prevented from presenting In as direct a way as I could wish the many questions that are pressing for solution at tills time. Happily, I have had the advantage of the advice of the beads of the several executive departments who have kept in close touch with affairs in their detail and whose thoughtful recommendations I earnestly second. In the matter of the railroads and the readjustment of their affairs growing out of federal control, I shall take the liberty at a later date of addressing you. Asks Budget System. I hope that congress will bring to a conclusion at this session legislation looking to the establishment of a budget system. That there should be one single authority responsible for the making of hll appropriations and that appropriations should be made not independently of each other, but with reference to one single comprehensive plan of expenditure property related to the nation’s Income, there can be no doubt. I believe the burden of preparing the budget must, in the nature of the case, if the work is to be properly done and responsibility concentrated instead of divided, rest upon the executive. The budget so prepared should be submitted to and approved or amended by a single committee of each house of congress and no single appropriation should be made by the congress except such as may have been Included in the budget prepared by the executive or added by the particular committee changed with the budget legislation. Audits on Expenditure. Another and not less important aspect of the problem is the ascertainment of the economy and efficiency with which the moneys appropriated are expended. Under existing law the only audit is for the purpose of ascertaining whether expenditures have been lawfully made within the appropriations. No one is authorized or equipped to ascertain whether ttie money has been spent wisely, economically and effectively. The auditors should be highly trained officials with permanent tenure In the treasury department, free of obligations to or motives of consideration for this or any subsequent administration, and authorized and empowered to examine Into and make report upon the methods employed and the results obtained by the executive departments of the government. Their reports should be made to the - congress and to the secretary of the treasury. Problem of Taxation. I trust that the congress will give Its Immediate consideration to the problem of future taxation. Simplification of the income and profits taxes has become an Immediate necessity. These taxes performed Indispensable service during the war. They must, however, be simplified, not only to save the taxpayer inconvenience and expense, but In order that his liability may be made certain and definite. With reference to the details of the revenue law, the secretary of the treasury and the commissioner'’of internal revenue will lay before you for your consideration certain amendments necessary or desirable in connection with the administration of the, law —recommendations which have my approval and support. It Is of the utmost importance that in dealing with this matter the present law should not be disturbed so far as regards taxes for the calendar year 1920, payable in the calendar year 1921. War Time Rates May Be Too High. The congress might well consider whether the higher rates of Income and profits taxes can in peate times be effectively productive of revenue, and whether they may not, on the contrary, be destructive of business activity and productive of waste and inefficiency. There is a point at which in peace times high rates of incope and profits taxes discourage energy, remove the Incentive to new enterprise, encourage extravagant expenditures and produce iadustrial stagnation, with consequent unemployment and s other attendant evils. The problem is not an easy one. A fundamental change has taken place with reference to the position of America in the world’s affairs. The prej- ‘ udice and passions engendered by decades of controversy between two schools of political and economic thought—the one believers in protection of American Industries, the other believers’ in tariff for revenue only-

must be subordinated to the consideration of the public Interest In the light of utterly changed conditions. Pre-War Trade Balanced. Before the war America was heavily the debtor of the rest of the world and the interest payments she had to make to foreign countries on American securities abroad, the expenditures of American travelers abroad and the ocean freight charges she had to pay to others about balanced the value of her pre-war favorable balance of trade. Durfhg the war America’s exports have been greatly stimulated, and increased prices have increased their value. On the other hand, she has purchased’* large proportion of the American securities previously held abroad, has loaned some $9,#0,000,000 to foreign governments and has built her own ships. Our favorable balance of trade has thus been greatly increased and Europe has been deprived of the means ol meeting it heretofore existing. Europe can have only three ways of meeting the favorable balance of trade in peace times: By Imports into this country of gold or of goods, or by establishing npw credits. Europe is in no position at the present time to ship gold tOzUS, nor could we contemplate large further Imports of gold into this country without concern. Muet Have Outlet for Exports. The time has nearly passed for international governmental loans and it will take time to develop in thio country a market f6r foreign securities. Anything, therefore, which would tend to prevent foreign countries from settling for our exports by shipments of goods Into this country could only have the effect of preventing them from paying for our exports and therefore of preventing the exports from being made. The productivity of the country, greatly stimulated by the war must find an outlet by exports to foreign countries arxf any measures taken to prevent imports will Inevitably curtail exports, force curtailment of production, load the banking machinery of the country with credits to carry unsold products and produce industrial stagnation and unemployment. If we want to sell, we must be prepared to buy. Whatever, therefore, may have been our views during the period of growth of American business concerning tariff legislation, we must now adjust our own economic life to a changed condition growing out of the fact that American business is full grown and that America is the greatest capitalist in the world. isolation Policy Won’t Do. No policy of isolation will satisfy the growing needs and opportunities of America. The provincial standards and policies of the past, which have held American business as if in a straightjacket, must yield and give way to the needs and exigencies of the new day in which we live, a day full of hope and promise for American business, if we will but take advantage of the opportunities that are ours for the asking. The recent war has ended our Isolation and thrown upon us a great duty and responsibility. The United States must share the expanding world maiket. The United States desires for itself only equal opportunity with the other nations of the world, find that through the process of friendly co-operation and fair competition the legitimate interest of the nations concerned may be successfully and equitably adjusted. Recognition and Relief to Soldiers. There are other matters of importance upon which I urged action at the last session of congress which ard still pressing for solution. I am sure It is not necessary for me again to remind you that there Is one immediate and very practicable question resulting from the war which we should meet In the most liberal spirit. It Is a matter of recognition and relief to our soldiers. I can do no better than to quote from my last message urging this very action: “We must see to it that our returning soldiers are assisted in every practicable way to find the places for which they are fitted in the daily work of the country. This can be done by developing and maintaining upon an adequate scale the admirable organization created by the department ol labor for placing men seeking work; and it can also be done In at least one very great field, by creating new opportunities for individual enterprise. The secretary of the interior has pointed out the way by which returning soldiers may be helped to find and take up land in the hitherto undeveloped regions of ( the country which the federal government has already prepared or can readily prepare for cultivation and also on many of the cut-over or neglected areas which He within the limits of the older states; and I once more take the liberty of recommending very urgently that his plans shall receive the immediate and substantial support of congress.” Protection for Dye Industry. In the matter of tariff legislation I beg to call your attention to the statemen,ts contained In my last message urging legislation with reference to the establishment of the chemical and dyestuffs industry In America: “Among the Industries to which special consideration should be given is that of the manufacture of dyestuffs and related chemicals. Our complete dependence upon German supplies before the war made the Interruption of trade a cause of exceptional economic disturbance. The close relation between the manufacture of dyestuffs, on the one hand, and of explosives and poisonous gases on the other, moreover, has given the Industry an exceptional significance and value. Although the United States will gladly and unhesitatingly join in the program of ia r

ternational disarmament, ft will, nevertheless, be a poUcy of obvious deuce to make certain of the successful maintenance of many strong and well-equipped chemical plants. The German chemical industry, with which we will be brought Into competition, was, and may well be again, a thoroughly knit monopoly capable of exercising a competition of a peculiarly insidious and dangerous kind.’’ Increased Production Is Vital. During the war the farmer performed a vital and willing service to the nation. By materiaHy Increasing the production of his land he supplied America and the allies with the Increased amounts of food necessary to keep their immense armies in the field. He Indispensably helped to win the war. But there Is now scarcely less need of Increasing the production in food and the necessaries of life. I ask the congress to consider means of encouraging effort along these lines. The Importance of doing everything possible to promote production along economical lines, to Improve marketing and to make rural life more attractive and healthful Is obvious. I would urge approval of the plans already proposed to the congress by the secretary of agriculture, to secure the essential facts required for the proper study of this question, through pie proposed enlarged programs for farm management studies and crop estimates. I would urge, also, the continuance of federal participation In the building of good roads, under the terms of existing law and under the direction of present agencies; the need of further action on the part of the states and the federal government to preserve and develop our forest resources, especially through the practice of better forestry methods on private holdings and the extension of the publicly owned forssts, better support for country schools and the more definite direction of their courses of study along lines related to rural problems; and fuller provision for sanitation in rural' districts and the building up of needed hospital and medical facilities In these localities. Perhaps the way might be cleared for many of these desirable reforms by a fresh comprehensive survey made of rural conditions by a conference composed of representatives of the farmers and the agricultural agencies responsible for leadership. Unrest and Its Causes. I would call your attention to the widespread condition of political restlessness In our body poHtic. The causes of this unrest, while various and complicated, are superficial rather than deepseated. Broadly, they arise from or are connected with the failure on the part of our government to ar-' rive speedily at a just and permanent peace permitting return to normal conditions, from the transfusion of radical theories from seething European centers pending such delay, from heartless profiteering resulting in the increase in the cost of living, and lastly from the machinations of pesslonate, and malevolent agitators. With the return to normal conditions, this unrest will rapidly disappear. In the. meantime it does much evil. It seems to me that in dealing with this situation congress should not be impatient or drastic, but should seek rather to remove the causes. It should endeavor to bring our, country back speedily to a peace basis with ameliorated living conditions under the minimum of restrictions upon personal liberty that is consistent with our reconstruction problems. And it should arm the federal government with power to deal in its criminal courts with those persons who by violent methods would abrogate out time-tested institutions. With the free expression of opinion and with the advocacy of orderly political change, however fundamental, there must be no interference, but toward passion and malevolence tending to incite crime and insurrection under guise of political evolution there should be no leniency. Legislation to this end has been recommended by the attorney general and should be enacted. To Reduce Cost of Living. In this direct connection I would call your attention to my recommendations bn August 8, pointing out legislative measures which would be effective in controlling and bringing down the present cost of living, which contributes so largely to this unrest If the government’s campaign is to be effective, it is necessary that the other steps suggested should be acted on at once. I renew and strongly urge the necessity of the extension of the present food control act as to the period of time in which it shall regain In operation. The attorney general has submitted a bill providing an extension Of this act for a period of six months. As It now stands it ls ( llmited in operation to the period of'the war and becomes inoperative upon the formal proclamation of peace. It is imperative that it should be extended at once. The department of justice has built up extensive machinery for the purpose of enforcing its provisions, all of which must be abandoned upon the conclusion of peace unless the provision of this act are extended. During this period the congress will have an opportunity to make similar permanent provisions and regulations with regard to all goods destined for Interstate commerce and to exclude them from Interstate shipment if the , requirements of the law are not com-' plied with. Some such regulation is. Imperatively necessary. The abuMM that have grown up in the manipuu tion of prices by the withholding oifoodstuffis and other necessaries of life cannot otherwise be effectively pre* vented. There can be no doubt of either the necessity or the legitimacy of such measures. The failure of other nations to con-

Mder this xnatter In a vigorous way has produced bitterness and jealousies and antagonisms, the food of radicalism. The only to keep men from agitating against grievances is "to remove the grievances. An unwilllngnen even to discuss these matters produces only dissatisfaction and gives oomfort to the extreme elements in our country, which endeavor to stir up disturbances in order to provoke governments to embark upon a course of retaliation and repression. The seed of revolution Is repression. The remedy for these things must not be negative in character. It must be constructive. It must comprehend the general Interest. The real antidote for the unrest which manifests itself is not suppression but a deep consideration of the wrongs that jieset, Air na tional life and the application of a remedy. Capital and Labor. Congress already has shown its willingness to deal as the standard In every held of labor. It has sought to find a way to prevent child labor. It has served the whole country by leading the way in developing the means •f preserving and safeguarding lives and health In dangerous industries. It must now help in the difficult task of finding a method that will bring about a genuine democratization of Industry, based upon, the Tull recognition of the right of those who work, In whatever rank, to participate in some organic way in every decision which directly affects their welfare. It Is with this purpose In mind that I called a conference to meet In Washington on December 1 to consider these problems in all their broad aspects, with the Idea of bringing about a better understanding between these two interests. ’ The great unrest throughout the world, out of which has emerged a demand for an immediate consldera!tion of the difficulties between capital and labor, bids us put our own house in order. Frankly, there can be no permanent and lasting settlements between capital and labor which do not recognize the fundamental concepts for which labor has been struggling through the years. The whole world gave Its recognition and indorsement to these fundamental purposes in the League of Nations. The statesmen gathered at Ver,sallies recognized the fact that world stability could not be had by reverting to industrial standards and conditions against which the average workman of the world had revolted. It is, therefore, the task of the statesmen f of this new day* of change and readjustment to recognize world conditions and to seek to bring about through legislation conditions that will mean the ending of age-long antagonisms between capital and labor and that ■will hopefully lead to the building up of a jgemradeshlp which will result not only In greater contentment among the mass of workmen but also bring about a greater production and a greater t prosperity to business itself. Justice in Labors Demands. To analyze the particulars in the demands of labor is to admit the Justice of their complaint in many matters that lie at their basis. The worknjan demands an adequate wage, sufficient to permit him to live in comfort, unhampered by the fear of poverty and want in his old age. He 'demands the right to live and the right 'to work amidst sanitary surroundings, both in home and In workshop, surroundings that develop and do not retard his own health and well-being, mnd the right to provide for his childrens wants in the matter of health and education. In other words, it is his desire to make the conditions of *his life and the lives of those dear to Ifam tolerable and easy to bear. The establishment of the principles ; regarding labor laid down tn the covenant of the League of Nations offers us the way to industrial peace and । conciliation. No other road lies open !to us. Not to pursue this one is longer to incite enmities, bitterness And antagonisms, which, in the end, only lead to industrial and social disaster. The unwilling workman is not a 'profitable servant whose sindustrial life is hedged about by hard land unjust conditions, which he did jnot create and over which he has no control," lacks that fine spirit of enIthuslasm and volunteer effort which I are necessary ingredients of a great jproduclng entity. Let us be frank about this solemn j matter. The evidences of* world-wide unrest which manifest ahemselves in violence throughout the world bid us pause and consider 'the means to be found to stop the spread of this conitagious thing before it saps the very Ivitality of the nation Itself. Do we I gain strength by withholding the (remedy? Is it not the business of i statesmen to treat these manifestations of unrest which meet us on (every hand as evidences of an economic disorder and to apply construcjtive remedies wherever necessary, being sure that In the appllcaalon of the remedy we touch not the vital tissues of our industrial and economic lUfe? There can be no recession of the itide of unrest until constructive instrumentalities are set up to stem that tide. Governments must recognize the ) right of men collectively to bargain for humane objects that have at their base the mutual protection and welof those engaged in all indus- * Labor must not be longer treated as £>»a commodity. It must be regarded as the activity of human beings, possessed of deep < yearnings and desires. The business I man gives his best thought to the reI pair and replenishment of his mar I chinery, so that its usefulness will

not be impaired and its powef to produce may always be at* Ito height and kept In full vjgor and motion. No less regard ought to be paid to the human machine, which, after all, propels 7 the machinery of the world and is the great dynamic force that lies back of all Industry and progress. Old Standards Unthinkable. Return to the old standards of wago and Industry in employment is unthinkable. The terrible tragedy of war which has Just ended and which has brought the world to the verge of chaos and disaster would be tn vaiif if there should ensue a return to the conditions of the past Europe Itself, whence has come the unrest which now holds the world at bay. Is an example of standpatism in these vital human matters which America might well accept an example, not to be followed, but studiously to be avoided. Europe made labor the differential, and the price of it all” Is enmity and antagonism and prostrated industry. The right of labor to live in j?eaee and comfort must be recognized by governments, and America should be the first to lay the foundation stones upon which industrial peace shall be built Labor not only Is entitled* to an adequate wage, ’but capital should receive a reasonable return upon its investment and is entitled to ■ protection at the hands of the government in every emergency. No government worthy of the name can “play” these elements against each other, for there is a mutuality of Interest between them which the government must seek to express and to safeguard at all cost. The right of individuals to strike is inviolate and ought not to be interfered with by any process of government, but there is a predominant right, and that is the right of the government to protect all of its people and to assert its power and majesty against the challenge of any class. Defends Rights of People. The government, when It asserts that right, seeks not to antagonize a class, but simply to defend the right of the whole pqpple as against the irreparable harm and injury that might be done by the attempt of any class to usurp a power that only government Itself has a right to exercise as a protection to all.

In the matter of International disputes which have led to war, stateS- j men have sought to set up as a rem- . edy arbitration for war. Does this I not point the way for the settlement of industrial disputes by the establishment of a tribunal, fair and just alike to all, which will settle industrial disputes which In the past have led to war and disaster? America, witnessing the evil consequences which have followed out of kuch disputes between the contending forces, must not admit Itself Impotent to deal with these matters by means of peaceful. processes. Surely there must be svme' method of bringing together in a council of peace and amity these two great interests, put of which will come a happier day of peace and co-operation, a day that will make for more comfort and happiness In living and more tolerable conditions among all classes of men. Certainly human intelligence can devise some acceptable tribunal for adjusting the differences between capital and labor. Hour of Test and Trial. This is the hour of test and trial for America. By her pfowess and strength and the indomitable courage of her soldiers she demonstrated her power to vindicate on foreign battlefields her conception of liberty and Justice. Let not her influence as a mediator between capital and labor be weakened and her own failure to settle matters of purely domestic concern be proclaimed to the world. There are those In this country who threaten direct action to force their will upon a majority. Russia today, with Its blood and terror, Is a painful object lesson of the power of minorities. It makes little difference what minority it is; whether capital or labor, or any other class; no sort of privilege will ever be permitted to dominate this country. We are a partnership or nothing that Is worth while. We are a democracy, where the majority are the masters, or all the hopes and purposes of the men who founded this government have been defeated and forgotten. In America there is but one way by Which great reforms can be accomplished and the relief sought by classes obtained, and that Is through the orderly processes of representative government. Those who would propose any other method of reform are enemies of this country. America will not be daunted by threats nor lose her composure or calmness in these distressing times. We can afford, in the midst of this day of passion and unrest, to be self-contained and sure. The instrument bf all reforiri in America Is the straight road of Justice to all classes and conditions of men. Men have but to follow thlk road to realize the full fruition of their objects and purposes.. Let those beware who would take the shorter road of disorder and revolution. The right road is the road of justice and orderly process.