Complete State of the Union Addresses from 1790 to 2006

f the financial requirements of the ensuing year, but also in the light of futur

ey can hardly be expected to be reduced to less than 25 billion dollars in subseque

sappear in future years. Tax collections for the fiscal year 1947 also will not yet fully reflect the reduction in corporate tax liabilities provided in the Revenue Act of 1945. If the extraordinary receipts from th

employment and the high productivity that we hope to achieve. In future years the present tax system, in conjunction with a full employment level of

the coming year and continuing inflationary pressures, I

d the total tax load by more than one-sixth, an amount substantially in excess of the reductions proposed by the Secretary of the Treasury to c

the economic situation. The level of anticipated expenditures for the fiscal year 194

ngerously powerful, and ill-advised tax reductio

eductions at this time is made in the light o

NG AND THE

arked the end of war borrowing and the beginnin

of the large cash balance now in the Treasury will be used for debt redemption so that the public debt which now amounts to about 278 billion dollars will decrease by several billion dollars during the next 18 months. The present statutory debt limit of 300 billion doll

THE PUBLIC DEBT, AND THE TREASU

f At end

_________

s Public

over recei

. 9 $43

6 258. 7

945 18. 1 2

946 10. 5 2

3 271.

The issuance of savings bonds will be continued. These bonds represent a convenient method of investment for small savers, and also an anti-inflationary method of refinancing. Government agencies and trust funds are expected to buy about 2.5 billion dollars of Government securi

The average rate of interest on the debt is now a little under 2 percent. Low interest rates will be an important force in promoting the full production and full employment in the postwar period for which we are all striving

more than half represents direct savings of individuals or investments of funds received from individual savings by life in

o finance war expenditures. A considerable portion of these obligations are short-term in character and hence will require refinancing in the coming months and years. Since they have been purch

in order and to relate our fiscal policies to the requirements of an expanding economy. The more successful we are in achieving full production and full employment the easier it will be to manage the debt and pay for the debt service. Large though the debt is, it is within our

engaged in all-out warfare. The high level of these receipts reflects the smoothness of the reconversion and particularly the strength of consumer demand. But the receipts so far collected, it

for goods is strong and the business outlook is good. These conditions prevail today. Business is good and t

FOR SPECIFIC F

ATION AND NAT

expend

tion and occupation. During this period we shall also lay

timate was made a year ago while we were still engaged in global warfare. After victory over Japan this estimate was revised to 50.5 billion dollars. Further cut-backs and accelerated demobilization have made possible an additional reducti

ncies, such as the United States Maritime Commission, the War Shipping Administration, and the Office of Price Administration, and payments to the United Nations Relief and Rehabilitation Administration are estimated at 3 billion dollars. Allowing for estimated net rece

of our expected national income. This estimate reflects the immense job that is involved in winding up a global war effort and stresses the great responsibility that victory has placed upon this country. The large expenditures needed for our national defens

e fiscal year 1947 is for war liquidation, aggregate expenditures by this Government for the second World War are now estimated at 347 billion dollars through June 30, 1947. Of

ion were overseas. By the end of December 1945 our armed forces had been reduced to below 7 million. By June 30, 1946, they will number about 2.9 million, of whom 1.8 million will be individuals enlisted a

th of about 2 million in the armed forces a year from now. This is necessary to enable us to do our share in the occupation of enemy territories and in the preservation of peace

ments of 64 billion dollars had been terminated. Of this total, 67,000 contracts with commitments of 35 billion dollars remained to be settled. Termination payments on these contracts are estimated at about

existing agencies have been organized to liquidate surplus property under the direction of the Surplus Property Administration. Overseas disposal activities have been centralized in the State Department to permit this program to be carried on in line with over-all foreign policy. Thus far only about 13 billion dollars of the ultimate surplus, including 5 billion dollars of unsalable aircraft

al year 1947 make allowance for military research, limited procurement of weapons in the developmental state, and some regular procurement of munitions which were developed but not mass-p

bor tonnage. Our Merchant Marine is five times its prewar size. The War Department has billions of dollars worth of equipment and supplies. Considerable maintenance and repair expense is necessary for the equipment which we

prevention of starvation and disease in occupied areas. Expenditures on this account will continue in the

expect the direct operations under this program to be substantially completed in the current fiscal year. The expendit

e the ravages of war. I estimate that in the fiscal year 1946 expenditures for the United Nations Relief and Rehabilitation Administration will tot

ns for war and n

vices and by industry. Thus our cumulative war program authorized in the period between July 1, 1940, and July 1, 1945, was 431 billion dollars, including net war commitments of Gov

nuing national defense. Intensive review of the war authorizations by both the executive and the legislative branches has b

, I transmitted to the Congress recommendations on the basis of which the Congress voted H.R. 4407 to repeal 50.3 billion dollars of appropriations and authorizations. I found it necessary to veto this bill because it was used as a vehicle for legislation that would impair the reemploymen

ations amounting to 5.8 billion dollars and of contract authorizations totaling 420 million dollars. The net reduction in authority to obligate will be 5.0 billio

War Department, 850 million dollars for lend-lease, 384 million dollars for the War Shipping Administration, and 260 million do

appropriate committees of the Congress, and the Congress has moved to bar construction under these authorizations during the remainder of the fiscal year 1946. I propose to continue this prohi

xisting authorizations, represent a cut in the authorized war program of 60.8 billion dollars. The war authorizations will also be reduced 3'7 billion dol

600 million dollars will be required for the Unite

on dollars on June 30, 1946. Expenditures of 49 billion dollars during the fiscal year 1946 will have pushed cumulat

al year 1947 will be partly for payment of contractual obligations incurred in the past, and partly for the payment of new obligations. The unexpended balances on June 30, 1946

nts. Of the required authorizations, 11,365 million dollars will be in new appropriations, 400 million dollars in new contract authority, and 7 million dollars in reap

on dollars in war commitments of Government corporations, the cumulative authorized war and national defense program on June

llars would never be spent even if not repealed, for the appropriations will lapse in due course. For example, several billion dollars of these unliquidated obligations represent unsettled inter- and intra-departmental agency accounts for war procurement. Legislation is being request

ble carry-over of unliquidated obligations into future years is to be expected and is necessary. However, substantial further rescissions can and should be made when the war liquidation program ta

United States Maritime Commission and certain other agencies, however, I now make specific recommendations for the fiscal year 1947. No additional authorizations or appropriations will

ERMATH

e fiscal year 1947 will be for purposes that are largely inherited from the w

or ve

ppropriations of 4,787 million dollars for the fiscal year 1947. Expenditures in the fiscal year are estimated, under present legislation, at 4,208

re of 850 million dollars for this purpose is anticipated for the fiscal year 1947. In addition, readjustm

the Congress also consider liberalizing veterans' allowances. Elsewhere in this Message I reiterate my recommendation with respect to emergency unemployment compensation. I also recommend i

s of the Servicemen's Readjustment Act. This amount includes both tuition expenses and maintenance allowance

d procedure contained in recent amendments, the administrative workload will be minimized by the almost complete transfer of authority for approving the guarantees to private lending agencies and private appraisers designated by the Veterans Admi

veterans of the war which we have just won. This figure includes 55 million dollars of increased pensions for student-veterans in our vocational rehabilita

ion are estimated at 528 million dollars in the fiscal year 1947. This includes 260 millio

will provide some 13,000 hospital beds as part of the 500-million dollar hospital construction program already authorized by the Congress. The estimated

or in

from the revised estimate for the current fiscal year. This increase reflects chiefly payment of interest on additions to the debt t

or re

million dollars, will be accessory to the simplified pay-as-you-go method of tax collection, and will be the result of overwithholding and over declaration of expected inc

f-war" character, and by the succeeding year will reflect almost entire

ULTURAL

re estimated at 784 million dollars from general and special accounts will be required in the fiscal year 1947. This compares with estimated expenditures of 676 million dollars in 1946. These figures exclude expenditures by the Department of Agriculture on account of lend-lease, the Unite

llion dollars in 1947. Cash advances made on loans by the farm Security Administration and the Rural Electrification Administration are expected to amount to 266 million dollars in the fiscal year 1946 and 35

year balances from customs receipts. In addition there is a recommended authorization of 367.5 million dollars for borrowing from the Reconstruction finance Corporation for the loan programs of the farm Security Administration and the Rural Electrification Administration. It is expected that the operations of

ations follow for major

A program--for the fiscal year 1947, compared with 356 million dollars in the current year. This reduction of 86 million dollars is in large part accounted for by el

oil management practices. I am convinced that farmers generally are now fully alert to the benefits, both immediate and long-term, which

mited by the scarcity of materials and manpower. But that situation is rapidly changing, and the REA program, which was materially stepped up for the fiscal year 1946, can be increased still more. It is my belief that a feasible and

s annually, which is about the minimum rate at which this program can be economically carried on. The lands involved in this prog

l as in the fiscal year 1946. Recent action by the Congress has Permitted some expansion of the school lunch program. I hope it will be continued and expanded. The budgets of

ANSPO

ies for transportation and communication must be constantly improved to serve better the conv

ion dollars in the fiscal year 1947. State and local governments may spend 400 million dol

nd harbors and on the construction of new Federal-aid highways. Much needed work on airpor

on dollars on the Federal-aid system. Additional expenditures for highways totaling 36 million dollars are anticipated by the forest Service, National Park Service, and the Territory of Alaska. Civil airways and airports will involve expenditures of 35 million do

compared with little more than one-seventh of the world's tonnage in 1939. This places a heavy responsibility up

ing operation from a war to a peace basis; the sale, chartering, or lay-up of much of the war-built fleet; and for a progra

ey should seek to improve the transportation system and increase its efficiency with resulting lower rates and superior service. Differential treatment w

URCE DE

ion dollars in 1946. These include capital expenditures by the Rural Electrification Administration and expenditures for resource dev

e expenditures cover programs of the Corps of Engineers, the Bureau of Reclamation, the Bureau of Indian Affairs, the Department of Agriculture, and the International Boundary and Water Commission, United States and Mexico.

ion dollars in the next fiscal year. In addition, the Southwestern Power Administration will undertake a new program involving expenditures of about 16 million dollars in the fiscal year

ilities--and additions to chemical plants and related facilities. Expenditures for these capital improvement pro

s, and other public lands, and for capital outlays for fish and wildlife development will increase

SECURITY

lion dollars, while withdrawals by the States from the Unemployment Trust fund for compensation payments ar

al year 1947, an increase of 57 million dollars over the current year. The increase anticipates greater administrative workload and higher grants to match increasing State payments. The social security program does not includ

priations, the remainder through other appropriations. About 28 million dollars is recommended for maternity care and health services for children under existing law, mainly under the emergency provision for the wives and infants of servicemen. While we should avoid duplication of maternity and child health services which will be provided th

rogram. Legislation is now pending in the Congress to authorize grants for the construction of hospitals and health centers

RCH AND

onal appropriations will be required for the proposed central Federal research agency which I recommended last September 6. That agency will coordinate existing research activities and administer funds for n

the common defense. Expenditures must be limited for the time being by the capacity of research agencies to make wise use of funds. T

on dollars in the present Budget. Of this amount, the estimate for veterans' education, as previously mentioned, is 535 million dollars. Other amounts include 21 million dollars for the support of vocational education in public schools, 5 million dollars for the land-grant colleges, 50 million dollars for the present school-lunch and milk program, 1 million dollars for the Office o

required for the expenditures to be made under the proposed legislation to aid the States in providing

cy. In the present section I shall indicate the Federal outlays which the

is purpose have already been extended to Soviet Union, France, the Netherlands, and Belgium amounting to 675 million dollars. The settlement credit of 650 million dollars to the United Kingdom includes an amount preliminarily fixed at 118 million

surplus. For instance, 532 million dollars of the settlement credit to the United Kingdom is for this purpose. These credits will involve no new expenditures

inistration, which were discarded under war expenditures above, are estimated to be 1.3

tton from the United States. The Export-Import Bank has thus loaned or committed approximately 1,300 million dollars during the current fiscal year and it is expected that demands on its resources will increase in the last 6 months of the fiscal year 1946. Requests for loans are constantly being received by the Bank from countries desiring to secure goods and services in this country for the reconstruction or development of their economies. On July 31, 1945, the lending authority of the Exper

financing the deficit in its balance of payments during the transition period. The rate at which the United Kingdom will draw on the credit will depend on the rapidit

e International Bank for Reconstruction and Development will commence operations during 1946. The organization of these institutions will undo

4. The remaining 950 million dollars will be paid initially in the form of non-interest-bearing notes issued by the Secretary of the Treasury. It is not anticipated that the fund will requir

of the subscription during its first year of operations. The balance of the subscription is payable when required by the Bank either for direct lending or to make g

dit and the Bretton Woods Agreements will amount to 2,614 million dollars, including the noncash item of 9

L GOVE

s general operating costs are higher. We cannot shrink the Government to prewar dimensions unless we slough off these new responsibilities--and we cannot do that without paying an excessive price in t

o the fact that the appropriations for the fiscal year 1946 were made prior to the general increase of employees' salaries last July 1, for which allowance is made in the anticipated supplemental appropriations for 1946. The recommended total for 1947 for general government, like the estimates for nationa

ernment. It includes all the expenditures of the Cabinet departments, other than for national defense, aids to agriculture, general public works, and the social security program. It includes also expenditures of the leg

e still needed during the period of reconversion; others are in the process of liquidation. A few wartime activities, for example, the international information and foreign intelligence services and some of the wartime progr

Department of Commerce which have been referred to above; the forest and Soil Conservation Services and other committees of the Departme

ally the estimated expenditures for postal service for both the current and the next fiscal year. It is not expected that this increase will cause expen

or the United Nations has not yet been determined; an estimate for our contribution will be submitted later. Our contributions to the food and Agriculture Organization, the International Labor Office, the Pan American Union, and

f that war we found a strength of unity that brought us through--a strength that cru

turn deaf ears to them. They are voices which foster fear and suspicion and intolerance and hate. They seek to destroy our harmony, our understanding of each other, our American tradition of "live and let live." They hav

2 months since the last annual Message, the great tasks that confront us, the new and huge problems of the coming mont

o fight and to win, with the help of our allies, under God. I doubt if the tasks of the future are more difficult.

o tables appearing in the budg

*

the Uni

S. T

ry 6,

er, Members of the Congr

f you have moved over to th

Union and, in the words of the Constitution, to reco

iscuss with you the manner in which you and I should fulfill o

n lies in our hands--yours and mine, and t

resolution to take that course, then we shall achieve a state of well-being for our people without precedent in history. And if we continue to work with the

e Congress represents a party in opposition to the President's party. I am the twentieth President of the United States who, at some time during his term of office, has fo

san differences, however, did not cause material disagreements as to the conduct of the war. Nor, in the co

ut there are ways of disagreeing; men who differ can still work together sincerely for the common good. We shall be risking the Nation's safe

AL DOMEST

er than in any year prior to the war emergency. The national income in 1946 was higher than in any peacetime year. Our food production is greater than it has ever been. During the last 5 years our

d to exercise during the war. The remaining controls will be retained only as long as they are needed to protect

termination of hostilities. This automatically ended cer

by Congressional mandate are to last during the "emergency"; the seco

time recommend that others within this classification be extended until the state of war has been ended by treaty or by legislative action. As to those statutes which continu

n the decisions of businessmen, farmers, and workers. These decisions must be wisely made with genuine concern for public we

ces might be raised to such an extent that the consuming public could not purcha

s been absorbed by increased prices. While some of our people have received raises in income which exceed price increases, the great majority have not. Those persons who live on modest

quitable price structure, each group of ou

line on existing prices, but to make reduc

ing for unjustified wage increases that

to encourage high-volume Production, for that is what mak

ontain many recommendations. Today I shall outline five major economic policies which I believe the Government should pursue during 1947. Thes

greater harmony betwee

actices; assistance to small business; and the promoti

an aggressive program

cal year and the achieving of a substantial surplus

r level of return to farme

AND MA

after the first World War--was m

ices in record volume. Nevertheless, it is essential to improve the methods for reaching

laws which will restrict the proper rights of the rank and file of labor. We must not, under the stress of emotion,

responsibility for failure to reach agreements which would have averted strikes. For that reason, w

l labor policy in this country based upon free collective bargai

ll the nati

ntinue to be the

lities that accompany the right to bargain. There have been abuses and harmful practices which limit the effectiveness of our system of coll

at once and certain others, by reason of their co

dditional governmental assistance in bargaining. But we should also co

you and urge your cooperation in effecting the foll

actment of legislation to preven

innocent bystanders who are injured by a collision between rival unions. This type of dispute hurts p

urisdictional disputes, however, minority unions strike to compel employers to deal with them despite a legal duty to bargain with the ma

ch labor union is entitled to perform a particular task. When rival unions are unable to settle suc

, when used to further jurisdictional disputes or to com

urisdictional disputes. The structure of industry sometimes requires unions, as a matter of self-preservation, to extend the conflict beyond a particular employer. There should be no blanket prohibition against boycotts. The ap

onomic force, by either labor or management, to decide iss

ships, disputes over the interpretation of contract terms are settled peaceably by negotiation or arbitration. Legislation should be enacted to provide ma

acilities within the Department of Lab

management resorts to economic force without exhausting the possibilities for agreement through the bargaining process. Neither the parties nor the Government have a definite yardstick for determining when and how Government assistance should be invoked. There is need for integrated gov

our program of social legislation to all

fficulties is to be found not only in legislation dealing directly with labor relations, but also in a program designed to remove the causes of insecurity felt by many workers in our industrial society. In this

mporary Joint Commission to inquire into the

r the appointment of a Temporary Joint C

of these problems. I therefore recommend that the Commission be composed as follows: twelve to be chosen by the Congress from members

vestigating and making recommendations u

the public interest. In particular, the Commission should examine into the question of h

ional disaster. We have been able to avoid such disaster, in recent years, only by the use of extraordinary war powers. All those powers will soon be gone. In their place there must be created an adequate system and effective machinery i

ld include the responsibilities of labor and management to negotiate freely and fairly with each othe

ng causes of labor

ge study. Others can be considered immediately by the Commission and i

rst report, including specific legislative r

POLY AND PROMOTION

Temporary National Economic Committee completed a comprehensive investigation into the workings of the national economy. The Committee's study showed that, despite a half cent

w find that to a greater extent than ever before, whole industries are dominated by one or a few large organizatio

usiness we will vigorously enforce the anti-trust laws. There is

es. Government assistance, research programs, and credit powers should be designed and used to promote the growth of new firms and new industries. Assistance to

decentralization of industry and the developm

US

t federal program to relieve the veterans' housing shortage was announced in February 1946. In 1946 one million family housing units have bee

prices that veterans can afford rests with private industry and with labor. The Government will continue to expedite the flow of key building materials, to limit nonresidential c

for rebuilding the blighted areas of our cities and should establish positive incentives for the investment of billions of dollars of private capital in large-scale rental housing projects. It should provide for improvement of housing in r

AL A

process of reducing the public debt. The budget which I shall submit to you this week has a small margin of surplus. In the Budget Message I am making recommendations which, if accepted, will result in a substantially larger surplus wh

eak level. The world situation is such that large military expenditures are required. Interest on the public debt and certain other costs are irreducible.

ICU

as to do with the welfar

kets. But in the next few years American agriculture can face the same dangers it did after World War I. In the early twenties the Nation failed to maintain outle

emand and prices fell, in contrast with industry where prices stayed u

War. Present laws give considerable stability to farm prices for 1947 and 1948, and thes

peace. The Government plan of support prices was not designed to absorb,

arantees expire to set the st

entitled to

t home and abroad, and to carry out the objectives of a balanced pattern of peacetime pro

ND GENER

n several of the recommendations in this program-mental health, the health of mothers and children, and hospital construction. I urge this Congress to complete the work begun last year and to e

program in the fields of health, education, and welfare. I again re

TE

places as citizens of their communities and their Nation. It is a tribute to the fiber of our servicemen a

medical and hospital care. Half a million have obtained loans, with Government guarantees, to purchase homes or farms or to embark upon new businesses. Compensation is being paid in almost two million cases for disabi

l wars is costing over seven billion dollars a year--one-fifth of our total federal budget

t be measured by the number of veterans receiving financial aid or by the number of dollars we spend. History will judge us not by the money we spend,

L RI

f racial and religious bigotry. Substantial segments of our people have been prevented from exercising fully their right to par

crimes should be in the

been conferred upon it. While the Constitution withholds from the Federal Government the major task of preserving peace in the several

ttee on Civil Rights to study and report on the whole problem of federally-

Order 9808 (3 CFR, 19

AL RE

hey are the foundation of our life. In the development of the great river systems of America there is the major opportunity of our gen

. The economic progress and the security of our country depend upon an expanding return of mineral dis

GN AF

of the world leadership of the United States. What we do, or fail to do, at home affects not only ourselves but millions throughout the world. If we are to fulfill our responsibilities to ourselves and to other peoples, we must ma

enate for ratification. This Government does not regard the treaties as completely satisfactory. Whatever their defects, however, I am convinced that they are as good as we can

ense of principles we regard as vital to a just and enduring peace. We have made it equally dear that we will not retreat to isolationism. Our policies wi

n us and the Soviet Union, however, should not be allowed to obscure the fact that the basic interests of both nations lie in the early making of a peace under which the peoples of all countries may retur

ine our policies toward all nations. We seek only to uphold the principles of in

. The Germans and the Japanese cannot be left in doubt and fear as to their future; they must know their national boundaries, their resour

RELIEF AND DIS

es of war, and in aiding nations to restore their national economies. We have shipped more suppli

the executive agencies are now doing all that is reasonably possible under the limitation of the existing law and established quotas. Congressional assistance in the form of new legislation is needed.

ATIONA

the International Bank, the International Monetary fund, and the Export-Import Bank. We must now take other steps for the recons

IC E

of nations. We ask only that there be safeguards sufficient to insure that no nation will be able to use this power for military purposes. So long as all government

aboration with the military services in conformity with the wish of the Congress, but it is my fervent hope that the military significance of atomic energy will steadily decline. We look to the Commission to foster the development of at

ARY P

artime forces. They are now maintaining the forces which we need

reatest deterrent to aggression. World stability can be destroyed when nations with gre

need for large armed forces is progressively declining; but the stabilizing force of American military strength must not be weakened until our hopes are fully realized. When a system of collective security und

forces and we must be able to mobilize rapidly our resources

lf of the Army will be used for occupation duties abroad and most of the r

l mission--to support our national interests wherever required--is unchanged. The Navy, in

duties which our foreign policy requires. Our forces at home are at a point where further reduction is impracticable. We should like an Army and a Navy

on will be much clearer in a few weeks, when the results of the campaign for volunteers are known. The War Department will make its recommendations as to the need for the extension of Selective Service in sufficient time

l training. I have appointed an Advisory Commission on Universal Training to study the various plans for a training program, and I

time enhance our national security. That is by the establishment of a single Department of National Defense. I shall commu

es, on prosperous agriculture, on satisfied and productive workers, on a competitive private enterprise free from monopolistic repression, on continued industr

ity than the attainment of our own national securit

ing and mutual respect, we can fulfill t

eals, and if we share our great bounty with war-stricken people over the world, then the faith of our citizens in fre

l and the patience

strengthen us

lead the peoples of the w

*

the Uni

S. T

ry 7,

peaker, and Members

to consider the

ut upon the country; not upon things which divide us but upon those which bind us together--the enduring principles of

, as a people, have been able to work together for

democratic government, our economic system, our great na

eople with a faith. We believe in the dignity of man. We beli

do believe that governments are created to serve the people and that economic systems exist to minister

ning at this time in history because of th

t occur again. Throughout the world new ideas are challenging the old. Men of all nations are reexamining the beliefs by which

mic development-and even more important, capacity for spiritual growth. But accompanying this great activity there are equally great questions, great anx

We seek answers which will embody the moral and spiritual elements of tolerance,

basis of the accomplishments of the last decade and of our goals for the next. H

rs to wage war upon mankind became apparent. The year

ough to escape most of war's destruction. We were able through these

courage, new confidence in the ideals of our free democracy. Our deep

d economy and our renewed confidence in democ

t national achievements have been attained by those with vision. Our Union was formed, ou

the future which have the greatest bearing upon the foun

an, in the next 10 years, build upon the [p.3] accomplishments of the past decade to achieve a

re fully the essential hu

ch, and freedom of thought are cherished realities in our land. Any denial of human rights is

for the expression of their views at the polls. Most serious of all, some are denied equal protection under laws. Whether di

tion by the Federal Government and by State and local governments. Because of the need for eff

f civil rights to the people of our territories and possessions. I believe that

o protect and develo

ities for development and their protection from economic insecurity. In this Nation the ideals of freedo

of our citizens are now protected against the loss of income which can come with unemployment, old ag

enefits, and survivors' benefits to millions who are not

health. We are rightly proud of the high standards of medical care we know how to provide in the Unit

ogram must be a national system of payment for medical care based on well-tried insurance principles. This

nsurance system to protect all our people

democracy is to provide an adeq

do not have adequate schoolhouses or enough teachers for a good elementary or secondary education. If there are educational inadequaci

r citizens for education. Only by so doing can we insure that our citizens w

are of such great importance to our democracy that we should n

ithin the next decade, we must see that every American family has a decent home. As an immediate step we need the long-range housing program which I have recommended on many occasions to this Congress. This

drastic housing shortage, we must

armed forces in World War II have now returned to civilian life. Over 2 million veterans are being helped through school. Millions have been

ome communities. The success of our veterans' program is proved by this fact. This Nation is pr

tural resources so that they can contribute

t are the bounty of our fields, the wealth of our mines and forests, and the energy of our waters. As a Nation, we are coming to app

troying them. Both the public and private use of these resources must have the primar

goal. We must vigorously defend our natural wealth

al resources and must intensify our efforts to develop ne

blic and private--through combating erosio

rove water supplies for additional millions of acres. This will provide new opportunities for veterans and

ustained-yield forestry and by planting [p.5

ower must not be monopolized for private gain. Only through well-established policies of transmitting power directly to its market and thus encouraging widespread use at low rates can the Federal Governm

at river basins. We can learn much from our Tennessee Valley experience. We should no lon

l our people by strengthening our economic system and sh

ss of the past 10 years poi

more people have

oods and services has

n dollars of equal purchasing power, has inc

mers, businessmen, and wage e

rom full employment and very high production. But we can increase our annual output by at least one-thir

erly, we can go far toward stampi

business, and labor mus

n sell more food at good prices when the incomes of wage earners are high and when there is full employment. Adequate diets for e

standards of living enjoyed in the cities. In 1946, the average income of farm people was $779, contrasted with an average inc

farmer to market his varied crops at fair pri

ill afford reasonable protection against fluctuations in the levels of productio

nefits extended in order to protect the farmer a

f consumers. Cooperatives which [p.6] directly or indirectly serve this purpose must be encou

trification program to bring the benefits

ve their soil resources and restore the fertility of

should act immediately to enable agriculture

the next decade by enlarging our industrial capacit

productive facilities over the next few years. But this is only the beginning. The industrial application of atomic energy and other scientific advances will

n ever improving standard of living. Competition is seriously limited today in many industries by the concentration of economic power and other elements of monopoly. The appropria

rong economic system is the w

and consequent high employment. We have learned equally well that the we

But our 40-cent minimum wage is inadequate and obsolete. I

g to set wage scales. Workers' incomes should increase at a rate consistent with the main

1947. I made my attitude clear on this act in my veto message to the Congress last June. Nothing has occurred since to change my o

f production--a loss which could bring higher prices for our citizens and could also deny the necessities of life to the hard-pressed peoples of other lands. It is my s

ahead to a great increase [p.7] in our national income which

must see that our gains in national income are made more largely available to those with low incomes, whose need

ther, must develop the policies which will make possible t

ce based on principles of freedom and

s have taught us that we cannot isolat

loss of freedom to ourselves--that the loss of independence by any nation

orld peace--that economic distress is a disease whose evil eff

igorously following policies designed to

red unforeseen and unwelcome difficulties, I am confident of its ultimate success. We are also devoting our efforts to

. We look forward to the day when nations will decrease their armaments. Yet so long as there re

ce is the early provision for universal training. There are many elements in a balanced national security program, all interrelated and necessary, but universal training should be the foundation for

national activities directed toward the creation

it not been for our aid, their situation today might well be radically different. The continued integrity of those countries will have a power

Austria, Japan, and Korea. Our efforts to reach agreements on peace settlements for these countries have so far been blo

rge the Congress to pass suitable legislation at once so that this Nation may do its share in caring for the homeless and suff

w making are those which support world economic reconstruction. We are seeking to restore the world tradi

tension of the provisions of the Reciprocal Trade Agreements Act, which made this achievement possible, is of extreme importance. We must also go on

overy developed by the countries of Europe. In my recent message to the Congress, I outli

y is strengthened, the product of its industry will be of benefit to many other areas of economic distre

our cooperation with the nations of the Western Hemisphere. A special program of assistance to Chi

reconstruction in many areas of the world can be achieved through cooperative effort among nation

ey depend upon the cooperative and honest efforts of all pa

the period from April 1, 1948, to June 30, 1952, with an initial amount for the first 15 months of $6.8 billion. I urge

e, and practical course in carrying o

poverty, hunge

s to peac

, large and small alike, may live free from the

rd among the peoples of the world based upon the d

s to peac

licies, both at home and with other nations, which will lead us

t one major problem which affects all our

d costs too much. Housing has reached fantastic price levels. Schools and hospitals are in financi

her depression, just as we had a depression afte

, I described the price increases which had taken place since June 1946. Whol

prices have gone up at an annual rate of 18 percent. Re

int anti-inflation program to the Congress in November ha

t not be our me

ly and at once with th

the spiral

ss will make available to the Government the weapons that

factors in our economy today is the exces

have been sharply reduced. They have been cut from more than $63 billion in the fiscal year 1946 to less than $38 billion i

inflation has been stopped there should be no cut in taxes that

ct total receipts, yet will adjust the tax burden so that those least able to pay will

ame time profits of corporations have reached an all-time record in 1947. Corporate profits to

profits, corporations can well afford to car

tments should be made to ease their burden. The low-income group particularly is being pressed very hard.

each individual taxpayer and an additional credit of $40 for each dependent. [p.10] Thus the income tax of a man with a wife and two childre

This reduction should be made up by increasing the tax on corporate profits in an a

me. It gives relief to those who need it most with

ssed we should consider tax reduction based

we shall be in a position to mov

ry citizen of this Nation shall have an equal right and an equal opportunity to grow

esources of this Nation shall be used w

and the strength of our resources shall contribute their f

derlies these purposes. It is this faith

these fundamentals. For today the wh

te ourselves to the faith in

the faith in God that gives us confidence

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the Uni

S. T

ry 5,

. Speaker, Member

than ever before to meet the needs of the American people, and to give them their fair chance in the pur

ing a society which offers new opportunities for eve

g their benefits. We have rejected the discredited theory that the fortunes of the Nation should be in the hands of a privileged few. We have abandoned the "trickledown" c

f the United States are in favor of this ki

resources to help one another in the hazards and struggles of individual life. We believe that no unfair prejudice or artificial distinction

efforts of every citizen in every walk of life, and it

running at full speed. The Government must see that every American has a chance to obt

r distribution of opportunity and a widespread con

ndertaken to meet th

l security. We have enacted laws protecting the rights and the welfare of our working people and the income of our farmers. These Federal policies have paid fo

ile our population has increased by only 20 percent, our agricultural production has increased by 45 percent, and our industrial p

wnfall of American capitalism. The people of the United States, going their own way, conf

ress has been, we stil

ry, many of our shortcoming

g from excessiv

ll not large enough t

wages are

losing ground to

future. And too many of them lack th

al resources are

power, although the means for d

in slums and firetraps. Three million

nce. Proper medical care is so expensive that it is o

ny localities, are

re often thwarted by pr

nity-an opportunity for the Congress and the

to protect our economy agains

be performed by individual efforts under our system of free enterprise. We can keep our present p

repare to weather a recession if it comes. Instead, government and business must work together constantly to a

; and men of good will, workin

s output, lower its prices, and avoid the vices of monopoly and restriction. So long as business does this, i

ng power. This means that the Government is firmly committed to protect business and the people against the dangers of recession a

points in our economy. And the Government must be in a position to take effective action at these da

ontrol consumer credit and enlarg

to regulate speculation o

l authority and to provide adequ

ties and allocation authority

ies and allocations for key

d and strengthe

ich basically affect essential industrial production or the cost of living, and to limit

h as steel; and, if found necessary, to authorize Government loans for the expansion of production facilities to relieve such

he Congress shortly, will discuss in detail th

flationary pressures, and to permit a sizable reduction in the national debt, which now stands at $252 billion. I recommend, therefore, that the Congress enact new tax legislation to bring in an additional $4 billion of Governme

At present, the working men and women of the Nation are unfairly discriminated against by a statute that abridges their rights, curtails their constructive e

should be

secondary boycotts should be prohibited. The use of economic force to decide issues arising out of the interpretation of existing contracts should be prevented. With

strengthened and those units properly belongin

h levels further require that the minimum wage fixed

We must assure small business the freedom and opportunity to grow and prosper. To this purpose, we should

ting prosperity of the whole Nation. Our goals should be abundant farm production and parity income f

t of line with general price levels, to facilitate adjustments in production to consumer demands, and to promote good land use. Our price support legisla

domestic market for agricultural products, particularly among l

ral electrification should be pushed forward. And in considering legislation relating to housin

l wealth. In our present dynamic economy, the task of conservation is not to lockup our resources but to develop and improve t

gation, navigation, and flood control. We should apply the lessons

o approve the St. Lawrence Seaway and Power project

remain--vested in the Federal Government. We must extend our programs of soil conservation. We must pla

ple. Public power should be carried to consuming areas by public transmission lines where necessary to provide

ndard of living of our citizens. These opportunities lie in the fie

rvivors insurance benefits receive an average payment of only $25 a month. Many others who cannot work because they are physically disabled are left to the mercy of charity. We should

s of millions lack adequate medical care. We are short of doctors, hospitals, nurses. We must remedy these shortages. Moreover, we need--

' salaries are too low to attract new teachers, or to hold the ones we have. All these school problems will become much more acute as a result of the tremendous increase in the enrollment

he programs of health, education, and social se

arance, farm housing, and housing research which I have repeatedly recommended. The number of low-rent public housing units provided for in the

dy. By producing too few rental units and too large a proportion of high-priced houses, the

e building industry to concentrate on the production of lower priced hou

e price ceilings on such materials, could be used, if found necessary, to channel more m

That faith is embodied in the promise of equal rights and equal opportunities which

de to the 80th Congress, I now repeat to the 81st Congress. They should be enacted in order that the Federal

ely behind th

to us for leadership because we have so largely realized, within our borders, those be

. We are doing what we can to encourage free states and free peoples throughout the world, to aid th

orld economic policy to create prosperity for mankind. Our guiding star is the principle of internatio

edged our resour

forces sufficient to deter aggression. We have made great progress in the last year in the effective organization of our Armed Forces, but

ld of foreign policy. At this time, I recommend that we restore the Reciprocal Trade Agreements Act to full effecti

me the constructive efforts being made by many nations to achieve a better life for their citizens. In the European recovery program, in our good-neighbor policy a

of international cooperation will eventually command the approval

mean either great achievement or terrible ca

r people rather than a privileged few. It must continue to be used unselfishl

he task b

omplications, and there will be stro

business. Every segment of our population and every indivi

the ability to govern his people as they should be governed. I explained to you at that time that the task before me was one of the greatest

hat your President have the complete cooperation of the Congress to carry out the great w

Congress and the President will work in closest cooperation with

that I shall be able to c

as guided us to this time of fateful responsibili

edged at every turning point in our national life, we shall b

*

the Uni

S. T

ry 4,

. Speaker, Member

today that the state of the Union continues to be good. Our Republic continues to increase in the enjoyment of fre

progress in strengthening the foundation

ued our successful support of European recovery. We have returned to our established policy of expanding

ed us 3 years ago that most of Europe and the Mediterranean area might collapse under totalitarian

table advances toward broader opportunit

programs for maintaining employment and purchasing power have been of tremendous benefit. As the result of these programs, and

ed minimum wages; we have gone forward with the development of our natural resources; we have given a greater

us nation with greater possibilities for the future than

of 1950, nearing the midp

eventful period in recorded history. The swift pace of events promises

50 years, caught up the peoples of the globe in a common destiny. Two world-shattering w

nature and mastered new powers. If he uses them wisely, he can reach new

insure that his new powers are used for good and not for evil. In shapi

s in world affairs. Fifty years ago we were a country devoted largely to our own internal affairs. Our industry was growing, and we had new int

billion a year. We have a more productive economic system and a greater industrial potential than any other nation on the globe. Our standard of living is

he center of world affairs. Other nations look to us for a wise exercise of our economic and military strength,

ut we are determined to see it through. Both of our great political parties are committed to working together--and I am sure they will continue to work together--to

ore than I the bipartisan cooperation in foreign af

ength is not simply a matter of arms and force. It is a matter of economic growth, and social health, and vigorous institutions, public and p

We must make our decisions in the conviction that all men are created equal, that they are equally entitl

have served to correct our failures and shortcomings, to spur us on to greater efforts, and to keep clearly before us the primary purpose of our existenc

give meaning to

t we must throw our weight on the side of greater freedom and a better life for all peoples. These

aw and morality without which mankind cannot survive. It has already set up new standards for the conduct of nations in the Declaration of Human Rights and the Con

eaceful adjustment of tense international controversies. In Indonesia and in Palestine the effor

aw and order. While the world remains unsettled, however, and as long as our own security and the security of the free world require, we will mainta

nse of free nations against aggression. At the last session this Congress laid the basis for th

omic recovery, because world prosperity is t

on, but it has not yet been completed. If we were to stop this program now, or cripple it, just because it is succeeding, we should be doing exactly what the enemies of dem

hority for adjusting differences in international commercial relations. It is an effort to prevent the kind of anarchy and irresponsibility in world trade which did so much to bring about the world depression of the 1930's. An expanding world economy requires the improvement of living standards and the development of resourc

eoples experience, in their own lives, the benefits of scientific and economic advances. This program will require the movement of large amounts of capital from the ind

nothing in common with either the old imperialism of th

by an appeal to the minds and hearts of men. If the peace policy of the democratic nations is to be successful, the

zes upon our imperfections, and takes advantage of the delays and setbacks which the democratic nations experience in their effort to secure a better life for their citizens. This challenge to us is more than a military challenge. It is a cha

llenge successfully. I believe that, in cooperation with the other free nations of the world, we shall extend the full benef

n our own country in following the principles of freedom. Over the last 50 years, the ideals of liberty and e

ieve greater success than others as a reward for individual merit and effort, and this is as it should be. At the same time our country must be

s so clearly demonstrated by our national history. During the last 50 years, for example, our Nation has grown enormously in material well-being. This growth has

The average hours of work have declined from 60 to 40 a week, the whole hourly production of the average worker ha

ankind would have been a miracle--we work shor

r people are better educated; we have more opportunities for travel and recreation and enjoy

ent years of our progress, we can expect further scientific advances, further incr

hat we shall grow as fast in the future as we have grown in the past, we ca

crease at the same rate as it has increased over the past 50 years, our total national production 50 years from now will be nearly four times as much as it is today. All

e learned by bitter experience that progress is not automatic--that wrong policies lead to depression and disaster. We cannot ac

ncrease productivity and obtain for labor a fair share of the benefits of our economic system. They cannot be achieved unless we have a stable and prosperous agriculture. They cannot be achieved unless we conserve and develop

ll permit the growth we know is possible. Foremost among these conditions is the need for a fair distribution of our inc

s of new and independent businesses. As our national production increases, as it doubles and redoubles in the next 50 years, the number of independent and competing enterprises should also increase. If the

mend that the Congress complete action at this session on the pending bill to close the loopholes in the Clayton Act which now permit monopolistic mergers. I also hope before thi

ged. Collective bargaining is not only a fundamental economic freedom for labo

tatute is, and always has been, inconsistent with the practice of true and effective collective bargaining.

of such importance that I recommend the establishment of a labor e

ng a program to give the farmer a reasonable measure of protection against the special hazards to which he is exposed

t slumps in farm prices, there are serious shortcomings in the methods now available for carrying out this policy. M

anageable surpluses and allow consumers to obtain the full benefit of our abundant agricultural production. A system of product

a country such as ours there is no reason why decent homes should not be within the reach of all. With the help o

laid the groundwork for relieving the plight of lower-income families in the Housing Act of 1949. To aid the middle-income families, I recommend that the C

od of adjustment. Rent control is still necessary to prevent widespread hardship and sharp curtailment of the buying powe

recious assets of soil, water, and forest, and grassland in such a way that they become constantly more productive and more valuable.

ions which have already received great benefits from Federal power projects, but also in regions such

r resource programs, we must continue policies to assure that their bene

of the St. Lawrence seaway and power project and the establishment of the Columbia Valley Admin

elopment of our natural resources, we can be sure of transmitting to our children and our

aceful development of atomic energy, particularly, we stand on the threshold of new wonders. The first experimental machines for producing useful power from atomic energy are now under construction. W

e. Government has a responsibility to see that our country maintains its position in the advance of science. As a

tion of its citizens. By so doing, we strengthen both our economy and the structure of our so

and illness. I earnestly hope that the Congress will complete action at this session on legislation to increase the benefits and extend the coverage of old-ag

urn of the past year was the first real test that our system of unemployment insurance has had to meet. That test has proved the wisdom

science. We have made a good beginning in expanding our hospitals, but we must also go on to remedy the shortages of doctors, nurses,

poor education. The rapidly increasing number of children of school age, coupled with the shortage of qualified teachers, makes this problem more critic

I again urge the Congress to enact the civil rights proposals I made in February 1948. These proposals are for the enactment of Federal statutes which will protect all our people in the exercise of their democratic rights and their search for economic opportunity, grant statehood to Alaska and Hawaii, provide a greater measure of self

y. In so doing, we shall add strength to our democracy through the abilities and skills which these men and women will bring here. I urge the prompt ena

which necessarily requires large expenditures of funds. More than 70 percent of the Government's expenditures are required to meet the costs of past wars and to work for world peace. Thi

duction of the Both Congress, the Government is not rece

nsistent with our international requirements and the essential needs of economic growth, and the

d the essential needs of economic growth, and the well-being of our people. Don't forget that last phrase. At the same time, we must guard agai

stwar programs declines, and as the Government revenue rises as a result of growth in employment and national income. To further improve our fiscal outlook, we should make some changes in our tax system which

ing is the quickest and safest w

prosperity for ourselves because we love luxury; we do not aid other nations because we wish to increase our power. We have not devised programs for the

been endowed by their Creator. We seek to establish those material conditions of life in which, without exce

tory. They are not to be achieved by military aggression or political fanaticism. They are to be achieved by humbler means-by hard wo

the road to a better life for all. It should make us humble to think, as we look ahead, how much farther we have t

tinued strength and guidance from that Almighty Power who has placed befor

*

the Uni

S. T

ry 8,

. Speaker, Member

e will be watched by the whole world. These actions will measure the ability of a free people, acting throu

y or wisely. We can meet it timidly

. I know that your debates will be earnest, responsible, constructive, and to the point. I

itutions are sound and strong. We have more men and women at work than ever before. We are able to prod

an succeed in the great

our part. We must all act together

ighting a bitter campaign in Korea. We pay tri

y know, as we do, that the aggression in Korea is part of the attempt of

our lives and our liberties. They are fighting to protect our right

e kind of world in which the free spirit of man can survive. This threat is aimed at

s and allies throughout the world. The gun that points at them points at

security lies in banding together. No one nation can find pr

ly peace in the world--peace for all countries. No threat to th

by the Charter of the United Nations, would be willing to live

the even more ambitious, more crafty, and more men

a large air force and a strong submarine force. It has complete control of the men and equipment of

at they are willing to use this power to destroy the

tion, and they use the method of external aggression. In preparation for either of these methods of attack, they stir up class str

o in Greece. If their methods of subversion are blocked, and if they think they can get away with outright warfare, they resort to external

et both of these methods of Soviet actio

iet dictatorship. We have skilled and vigorous peoples, great industrial strength, and abundant sources of raw materials. And abov

ieve in the dignity

independence f

ether into a world order based on law. We have laid the c

efits of modern science and industry, better health and educatio

power and vitality that Russia

real community bound together also by the ties of self-interest and self-prese

we equally need theirs. Our national safety would be gravely prejudiced if the Soviet Union were to succeed i

a and Africa should fall to Soviet Russia, we would lose the sources of many of our most vital raw materials, including uranium, which is the basis of our ato

Union does not have to attack the United States to secure domination of the world. It can achieve its ends by isolating us and swallowing up all our allies. Therefore, even if we were c

pecial responsibility. We must take the leadership in meeting the challen

, realistic program of actio

to strike at the roots of social injustice and economic disorder. People who have jobs, homes, and hopes for the future will de

rogressed, the strikes led by the Kremlin's agents in Italy and France failed. All

any cases, to levels higher than ever before in their history. Without this strength they would be completely incapable of defe

uropean countries. This aid should now be specif

le who are striving to advance from misery, poverty, and hunger. We must also continue to help the economic growth of our good neighbors in this hemisphere. These actions will bring greater st

our military assistance to countri

whole free world--ourselves included. Next to the United States, Europe is the largest workshop in the world. It is also a homelan

t of our own defense. That is why we have joined with the countries of E

er the European countries are willing to defend th

All have taken measures to improve the quality of training. Forces are being trained and expanded as rapidly as the necessary arms and equ

rogress is being made. Together, we have worked out defense plans. The military leaders of our own coun

Europe last week one of our greatest milita

nd of the united forces of the North Atlantic Tre

ity to put together a fighting force of allies. His mission is vital to our se

rength of our European partners by sending them weap

ng to defend their freedom. Soviet communism is trying to make these nations into colonies, and to use the

Asia. Our history shows this. We have demonstrated it in the Philippines. We have demonstrated it in our relations with Indo

preserve the principle of independence for free nations. We are fighting to k

means that free nations, acting through the United

n of Manchuria in 1931, or the attack on Ethiopia in 1935, or the seizure of Austria in 1938, if they had stood together against

of free nations. Korea is not only a country undergoing the torment of aggression; it is also a symbol. It stands for right and justice

nts in international disputes. We will support the United Nations and remain loy

gotiate honorable settlements with the Soviet

ight on our side. If we build our strength--and we are building it--the Sovi

at is what we are trying to bring about.

of free nations. These are the things we must do to preserve our security and help create a pe

g them fast. We are preparing for full wartime mobilization, if that should be necessary. And we are continuing

n men and women. We are stepping up the training of the reserve forces, and establishing more

we will make weapons for our allies, and weapons for our own reserve supplies. On top of this, we will

st war. For example, many combat ships are being returned to active duty from the "mothball fleet" and many others can be put int

rn. We have made remarkable technical advances. We have developed new types of jet planes and powerful new

e had during World War II, but it is just as urgent an

ty to produce 50,000 modern military planes a year. We are preparing the capacity to produce 35,000 tanks a year. We are not now ord

gger, much better, and much more expensive

ve of these blockbusters in its belly, and it can carry them five times as far. Of course, the B-36 is much more compl

s to provide the best and most modern military

se production prog

ants and channel materials to defense production. This means heavy cuts in civilian uses of copp

to keep our economy strong for the long pull. We do not k

eriod in the future. This means that we will have to build more power plants and more ste

ssion, affecting all the aspects of our mobilization job.

ations for our

d revision of the Se

c aid to help build up the

authority to expand production and t

laws to help obtain the kinds of farm p

e stable labor-management relations and to make sur

defense workers and the full us

ctors, nurses, and other trained medical pers

Some of our plans will have to be deferred for the time being. But we should do all we can to

in taxes to meet the cos

further. In addition, I shall send to the Congress special messages con

tary procurement and atomic energy and power development. It must practice rigid economy in it

we cannot neglect the measures needed to maintain

easures which our country will need for the long pull. And it sho

surance. We still need to improve our protection against unemployment and old age. We still need to provide

continue our efforts to achieve the full realization of our democratic ideals. We must uphold the freedom of speec

nse of freedom, let us keep dearly bef

o meet the danger of aggression that has been turned loose on the worl

s for unity in th

e. Only by debate can we arrive at decisions which are wise, and which reflect the desires of the Amer

us debate the issues, but let every man among us weigh his words and his deeds. There is a sharp difference between harmful cri

he issues and work for th

ahead of our party, and ahead

now from experience that unity of purpose and of effort is possible in th

. Let us stand together with all men e

d wisdom we possess. But more precious than peace are freedom and justice. We will fi

ing to our lives, and which we ackn

this cause with determination and humility, asking divine

*

the Uni

S. T

ry 9,

. Speaker, Member

ort to the Congress on

essity for putting first things first as we work

anger. Every action you take here in Congress, and every action that I take as Pre

ur lives--a larger part than usual. That is perfectly proper. But we have a greater responsi

out destroying our free institutions and without

blicans and Democrats alike--all of us are Americ

to help establish the kind of world in which peace shall be secure. Peace is our goal-not peace at any price, but a peace bas

on, added greatly to our military strength, and improved th

ahead, with courage and vigor and determination, we can by the end of 1952 be in a position of much greater security. The way will be dangerous fo

on both the credit and the debit side of the ledger. We have made great adva

ok at the cre

making a combined effort to check aggression and prevent

area of conflict. The action of the United Nations in Korea has been a powerful deterrent to a third world war. How

llies to hold back the Communist advance, althoug

ic region by the treaties with Japan and the defense arra

fighting force. This force is not yet as strong as it needs to be; but it is already a

rity of Europe by the agreement to bring Gre

h a year of trial stronger and more useful than ever. The free nations h

ish and the French, offered a plan to reduce and control all armaments under a fo

sleep at all last night .... I could not sleep because I kept laughing." The world

nger from the people all over the world. And, as a result, Mr. Stali

he resources of the earth to be devoted to the good of mankind. But until the Soviet Union accepts a sound

s now nearly 3 1/2 million. We have made rapid progress in the field of atomic weapons. We have t

arm incomes, and business profits are at high levels. Total production of goods and services

in the second year of a 3-year program which will double our output of aluminum, increase our electric power supply by 40 percent, and increase

all of us in the years ahead. At the present time it means greater str

e debit side of the le

that the Soviet Union, in 1951, continued to expand its milita

wakened stern resistance among free men throughout the world. And behind the Iron Curtain the So

ight. It is still producing more war planes than the free nations. It has set off t

defense preparations

r weakness in our plans for peace, since inadequate civilian defense is an open invitation to a surprise attack.

elays in designing and producing the latest types of airplanes and tan

vere economic problems. It has increased inflation in Euro

Iran are keeping the region in a turmoil. In the Far East the d

the good side and the b

e power and unity of the free world. And while we were doing this, we have avoided world war on the one hand, and appease

larger military forces needed to deter aggression. We must build steadily, over a period of years,

On our side are all the great resources of freedom--the ideals of religion and democracy, the asp

d can produce. The only thing that can defeat us

ry difficult time. The way seems long and hard. The goal seems

t to ease up in the fight for peace, I want to

bor--let's not get caught off guard again. If you don't think the threa

estroy the life we know and the ideals we hold dear. Our allies are essential to us, just as we are

ic moral and spiritual values of our civilization. We have started out well--with a program for peace that is unparalleled

courage, not for gr

a look at the thi

l we get the kind of armistice that will put an end to the aggression and protect the safety of our forces and the security of the

o be preserved in the world. We went into the fight to save the Republic of Korea, a free country,

to strengthen the forces of

peace treaty, on our security pacts with the Pacific countries, and on

epublic under which it can play an honorable and equal part am

defense structure. The sinew and muscle of defense

rge volume to our European allies. I have directed that weapons for Europe be given a very high priority. Economic aid is neces

ng taken to build European unity should help bring that about. Six European countries are pooling their coal and steel production under the Schuman plan.

lp and encourage the move tow

o preserve their culture and their traditions against communism, just as much as we want to preserve ours. They are laboring under terrific handicaps--pov

ose places like Indochina which might be

d, both technical know-ho

ng in India to help the Indian farmers themselves raise more grain. With the help of our technicians, Indian farmers, using simple, inexpensive means, have been

globe. Our technical missionaries are out there. We need more of them. We need more funds to speed their efforts, because there is nothing

ted the developments necessary to feed the whole world so we wouldn't have to stomach communism. That is what w

d hope to the people of half the world. Dr. Henry Bennett and his associates died in line of dut

ing oppressed, human rights violated, religions persecuted. We should continue to expose those wrongs. We should continue and expand the

st satisfactory series of meetings. We thoroughly reviewed the situation in Europe, the Middle East, and the Far East.

us consider the jobs we have here at

s to move ahead full stea

immediately if we should be attacked. This active force must be backed by adequate reserves, and by the plants and tools to turn out the tremendous quantities of new weapons that wo

ith particular emphasis on air power. This means we shall have to continue large-scale produc

o come off the production lines in volume. Deliveries of hard goods now amount to about a b

we hope to have enough equipment so that we can reduce the production of most military item

on of some civilian goods. The cutbacks will be nothing like those during World War II, when most civilian production was

our defense job this year

ation if we make up

clearly justified under sound stabilization policies; and we will see to it that industries absorb cost increases out of earnings wherever feasible, before they a

shot full of holes at the last session. This year, it will be one of the main tas

is means high taxes over the next few years. We must see to it that these taxes are shared among the people as fairly as possib

een taken to remedy weaknesses which have been disclosed in the administration of the tax laws. In addition, I hope the Congress will approve my reorganization plan for the

, and expanding economy here at home. We cannot neglect those th

orld peace because, for nearly 20 years, the Government and the people have been working together for the general welfare. We have give

r all the American people. Some people will say that we haven't the time or the money this year for measures for

thers at a slower pace. But, so far as I am concerned, I do not thin

in this country will

electrification and agricultural research are not frills or lux

onditions are not luxuries, but necessities if the working men and wom

ces and more steel mills and power projects are not luxuries, but necessities

frills, but necessities in helping all Americans to be useful and productive citizens, who

he things that will contribute most to defense--but we must continue

e you some

to prevent floods. We are going to produce essential power and build the lines that are necessary and that we hav

ing any other steps that will assure the Nation an adequate

t defense workers and soldiers' families get

eet the present crisis in the operation of our schools. And we must help with the constru

tion. We also urgently need to expand the basic public health services in our home communities-

ost of modern medical care within the reach of all the people. I have repeatedly recommended national health insurance as the best way to do this. So far as I know,

insurance should be raised $5 a month above the present average of $42. For another thing, the States should be given special aid to help them inc

r disability incurred in the service of our country. In addition, now is the time to start a sensible prog

gency. The "sliding scale" in the price support law should not be allowed to penalize farmers for increasing production to meet

ed this so clearly that even the sponsors of the act now admit that it needs to be changed. A fair law, fair to both management and labor,

the benefits of freedom more widely among all our own people. We need to take action t

rces, in the civil service, and in private firms working for the Government. Further advances require action by Congr

be the first item of business before the Senate. I hope that it, as

to advance the well-being of our people--demonstrate

ul influence on the people of the world--on both sides of the Iron Curtain

ss, are watched from abroad. And there is o

all others cannot tolerate di

s based on the principle of justice for all. Such unworthy public servants must be weeded out. I intend to see to it that Federal employees who have been guilty of misconduct are

h these purposes. I intend to submit further recommendations to this end.

ying rigorous standards of moral integrity to its own operations, and by finding an effective way to co

erent kinds of strength--military, economic, political, and moral. A

character of our Nation--and of each one of us as individu

bring peace to the world and to spread the democratic ideals of justice and self-government to all people. Our accomplishments are already remarkable. We ought to be full

ng, that we are bound to fail. Some say we should give up the struggle for peace, and others say we should have a war and get it over with. That's a terrible statement. I had

ue to the ideals for which they are fighting. We must reject the counsels of defeat and despair. We

orer chances of success. They did not lose heart, or turn aside from their goals. In the darkest of all winters in American history, at Valley Forge, Ge

annot expect to have fair weather all the way. But it is a contest just as important for this cou

patriots and summer soldiers. Let us go forward, tr

*

the Uni

S. T

ry 7,

ess of the U

ort to the Congress on

or legislative action in the coming year. But that is not my purpose today. The presentation of a legislative program falls properly to my successor, not to me, and I would not infr

blic. The Presidency last changed hands eight years ago this coming April. That was a tragic time: a time of grieving for President Roosevelt--the great and gallant h

he conclusion of his term, steps back to private life; his successor, chosen by the people, begins his te

derstanding collaboration in this endeavor. I have not sought to thrust upon him--nor has he sought to take--the responsibility which must be mine until twelve o'clock noon on January twentieth. But tog

ng responsibilities, given to any man. And I, with you and all Americans, wish

r foreign relations. He is Chief Executive of the Nation's largest civilian organization. He must select and nominate all top officials of the Executive Branch and all Federal judges. And on the legislative side, he has

the face of the earth. Each task could be a full-time job. Togeth

ly has to carry on these tasks in such a way that our democracy may grow and flourish and our people prosper, but he al

t is not a challenge to him alone, for in reality he cannot meet it alone. The challeng

ve as his fellow citizens-indeed, the whole people--comprehe

in the people, in the Nation. It is pride in our political system and our form of government--balky sometimes, mechanically deficient perhaps, in many ways--but enormously alive a

President of the United States has had that measure of support and understanding without which no m

tisan civil servants; grateful--despite our disagreements-to the Members of the Congress on both sides of

complishments of these past eight years. But the accomplishments are real and very great, not as th

we have done since I first assumed my

endered. Then, in July, that great white flash of light, man-made at Alamogordo, hera

for us by sudden, total victory in World War II. Co

ere be another depression here--a repetition of 1921 or 1929? The free world feared

stion--answered it w

e done--but incomes, by and large, have risen even more, so that real living standards are now considerably higher than seven years ago. Aided by sound government policies, our expanding economy has shown the strength and flexibility for swift and almost painless reconversion from war to peace, in 1945 and 1946; for quick reaction and recovery--well befor

ow, to those who feared or hoped

the administration of the Government, no problem takes more of the President's time, year in

endous public debt, which reached 279 bill

held quite closely to the sound standard that in times of high employment and

. Using this surplus, and the Treasury's excess cash reserves, the debt was reduced substantially, reachin

-go policy. But in the current fiscal year and the next, rising expenditures for defense will su

d, so long overdue--that the New Deal had introduced into our national life? Would our Government continue to have a heart for the people, or was the progress

people. We have answered it by increasing our minimum wage. We have answered by the three million privately constructed homes that the Fed

beds provided since 1946 through the joint effort

World War II to obtain advanced education, 196 thous

tain electric power, until today nearly 90 per ce

at our democracy has not forgotten how to use the powers of

ls and water, forests and grasslands. Would we continue the strong conservation movement of the 1930's, or wo

ving them for future use. In our river basins, we have invested nearly 5 billion dollars of public funds in the last eight years--invested them in projects to control floods, irrigate farmlands

setbacks; we have had to delay work because of defense priorities, but on the whole we can be pro

ace as well as war, to promote equality of opportunity for all our citizens, seeking

ld back by prejudice. Were we prepared, in peacetime, to keep on moving toward full realization of the democra

ains, the residential districts of our cities--in stores and factories all across the Nation--in the polling booths as well--the barriers are coming down. This is happening, in part, at the manda

all this progress--still far from complete but still continuing--has been our answer, up to now

mocracy: Could the machinery of government and politics in this Republic be changed, improved, adapted rapidl

in 1946; the unification of our armed services, beginning in 1947; the closer integration of foreign and military policy through the National Security Council created that same year; and the Execut

rld a durable structure of security, a lasting peace for all the nations, or would we drift, as after Worl

nally for a long time to come. But day and night, these past eight years, we have been building for peace, searc

real pride to all Americans. At the very least, a total war has been averted, each day up to this hour. And at the most, we may a

Nations once great were left shattered and weak, channels of communication,

Union emerged as the two strongest powers of the world. Each had tremendous human

w that came to pass--than an understanding of the diametrically opposite

ee men, heirs of the American Revolution, dedicate

h certain unalienable rights... That to secure these rights, governments are in

the damage and dislocation of the war. We held out a helping hand to enable them to restore their national lives and to regain their positions as independent, self-suppor

wever, took exactly

tunity to exploit misery and suffering for the extension of their power. Instead of help, they brought subjugation. They extinguish

and live in the light of their own traditions and principles. On the other side, we see the dead uniformity of a tyrannical system imposed by th

as recorded history; it

s the terrible conception that men do not ha

to build a just and peaceful world. The "cold war" between the communists and the free world is nothing more or less

be maintained, that the frightful experience of Nazi invasion, of devastation in the heart of Russia, had turned the Soviet rulers away from their old proclaimed allegiance to world revolution and communist dominion. But instead, they violated, one by one, the

th. They demonstrated that we believed what we proclaimed, that we actually sought honest agreements as th

. And because the free world saw this happen because men know we made the effort and the Soviet rulers spurned

ure of the threat we have faced-and will face for a long time to come. The measures we have dev

square miles of the satellite states--virtually incorporated into the Soviet Union--and of China, now its close partner. This va

ards, in economic and cultural development. It is a world whose people are not all convinced communists by any means. It is a world where history and national traditio

ice are everywhere and their authority unlimited; a world where terror and slavery are deliberately administered both as instruments of government and

ons. The party regulates and centrally directs the whole economy. In Moscow's sphere, and in Peiping's, all history, philosophy, morality and law are centrally e

life, the communists have walled off their world, deli

eign communists, people in nearly every free country who will serve Moscow's ends. Thus the masters of the Kremlin are provided with delud

ons, and their agents in foreign lands, w

their whole vast area and population into a completely self-contained, advanced industrial society. They aim, some day, to equal or better the p

ared to levy upon living generations any sacrifice that helps

r world, whenever and wherever they can. This expansion they have pursued st

e countries of Eastern Europe, they have gr

al Stalinists tried to gain power through political processes, politically-inspired s

rrection by communist-led revolutionary forces, as in Greece, Indo-China, the Phil

a and Africa, the communists tried to identify themselves with the cause of progress, tried to picture themselves

ries, to enslave more millions of human souls. They were, and are, ready to ally themselves with any gr

ee world around them. So situated, they can use their armies and their economic power to set up simultaneously a whole series of threats--or inducements--to suc

weakness and division in the free world, preparing for the time their false creed teaches them must come: the time when the

eiping look out upon the world, the glass through which they see the rest of us. They seem really to believe that

is the measure of the challenge we have faced since World War II--a challenge partly military and partly economic

mmunity of nations outside the iron curtain, but in addition to give expression and opportunity to the forces of growth and progress in the free world, to so organize and unify the c

arry out this purpose has been d

eaceful business. We realized that if we and our allies did not have military strength to meet the growing Soviet military threat, we would never have the oppo

to help create conditions of economic and social progress in the world. This work had to be carried forward alongside the first, not only in order to meet the non-military asp

e. Military security depends upon a strong economic underpinning and a stable and hopeful political order; conversely, the

the world. This, indeed, has been the foundation of our whole effort, for the drawing together of the free peopl

teps we have been taking to strengthen and unif

we gone about meeting the requirement of providing

aid on many occasions, has been

ace. But before the United Nations could give full expression to the concept of international security embodied in the Charter, it was essentia

ms of the United Nations to give that principle effect. We must frankly recognize that the Soviet Union has been able, in certain instances, to stall the machinery of collective security. Yet it has not been able to impair the principle of collective security. The free nations of the world have retai

f to collective suicide merely because

reaty of Rio de Janeiro, the North Atlantic Treaty, now extended to include Greece and Tur

top an aggressor. By a series of vigorous actions, as varied as the nature of the threat, the free natio

d we have given to people determined to act in defense of their fr

the steps we have taken. Each major step was a milepost in the d

made through the United Nations to safeguard the

Greece, which enabled her to defeat the fo

ng up a bulwark of military strength for an area

o our partners in the North Atlantic Commun

on its way to becoming a member of the peaceful community of nations, and a partner in the common defense. The Soviet effort to capture Berlin by b

ghts of violence unmatched elsewhere--and the problem of concerted act

the free Chinese to rebuild and strengthen their forces on the island of Formosa. In other areas of the Far East-in Indo-China

the Republic of Korea, a state that was in a special sense under the protection of the United Nations. The response was immediate

each an honorable truce. The months of deadlock have demonstrated that the communists cannot achieve by persistence, or by diplomatic trickery, what they failed to achieve by

it plain that the free nations will fight side by side, that they will not succumb to aggression or intimi

d's defense is the military s

ole possessor of the atomic bomb. That was

p our lead in atomic weapons. We had to strengthen our armed forces generally and to enlarge our productive capacity-our mobilization base. Historically, it was

also needed strength along the outer edges of the free world, defenses for our allies as

last two and one half years, we have more than doubled our own defenses, and

pointed out, they are interwoven with the necessity of taking steps to create and maintain economic and social progress in the free nations. There can be no military strength except where ther

emselves from stagnation and find again the path of rising production, rising incomes, rising standards of living. The situation was changed almost overnight by the Marshall Plan;

ions, European economic institutions like the Schuman Plan, the movement toward European political integration, the European Defense Community-all are signs of practical and effective

aggression. The free nations there, with our help, have been drawing together in defense of their free institutions. In so doing, they have laid the foundations of a unity that will endure as a major creative force beyond the exigencies of this period

e hundreds of millions of people are in ferment, exploding into the twentieth century, thru

sident, 12 free nations, with more than 600 million people, have become independent: Burma, Indonesia, the Philippines, Korea, Israel, Libya, India, Pakistan and Ceylon, and the t

oblems of transition from old social forms, old political arrangements, old economic institutions to the new ones our century demands--problems of guiding change into constructive channels, of

ain, Indians to reduce the incidence of malaria, Liberians to educate their children better, we are at once helping to answer the desires of the people for advancement, and demonstrating the superiority of freedom over communism. There will be no quick sol

ry of the free world has set the stage for violent and disastrous rivalry among the economically developed nations, struggling for each other's markets and a greater share of trade. Here is another test that we shall have to meet and master in the years immediately ahead. And it will take great ingenuity and effort--and much time--bef

ng an international structure for military defense, and for economic, social, and political progress. We must be prepared for war

ry different thing from what it used to be. War today between the Soviet empire and the free nations mig

Alamogordo to Eniwetok. It is only seven years, but the new force of

y the rulers in the Kremlin. But I have been President of the United States, these seven years, responsible for the decisions which have brought our s

ought under international control. We promptly advanced proposals in the United Nations to take this new source of energy out of the arena of national rivalries

assume that the Soviet Union would not develop the same weapon, regardless of all our precautions, nor that t

at would place this new form of power under effective restraints--that would guarantee no nation would use it in war. I do not have to recount here the proposals we made, the steps taken in the United Nations, striving at least to open a way to ultimate agreement. I hope and believe that we will continue to ma

do we have developed atomic weapons with many times the explosive force of the early models, and we have produced them in substantial quantities. And recently, in the thermonuclear tests at Eniwetok, we have entered another sta

he speed of our scientific and technical progress over the last seven years shows no signs of abating. We are being hurri

we must follow. And we must realize that no advance we make is unattain

h the great cities of the world, wipe out the cultural achievements of the past--and destroy the very s

now this, but we dare not assume that others would not yie

d be war between your world and ours. But Lenin was a pre-atomic man, who viewed society and history with pre-atomic eyes. Something profound has happened sin

elves to recognize this truth. But when they do, they will find us eager to re

elf. Properly used, it is an instrumentality for human betterment. As a source of power, as a tool of scientific inquiry, it has untold possibilities. We are

ives. We cannot legislate it out of existence. We

emocratic processes. Above all, we must strive, in all earnestness and good faith, to bring it under effective international control. To do this will require much wisdom and patience and firmness. The awe-inspiring responsibility in this field now

negotiate effective control of atomic energy and honorable settlements of other world problems. We cannot measure how deep-rooted are the Kreml

spans, like the two-year life of this Congress, or the four years of the next Presidential term. They seem to think and pl

and our economy, our science and technology against the best they can do--our liberty against their slavery--our voluntary concert Of

he will and the steadiness of

history of our Republic. We are called upon t

, the world we have to live in, cannot be so pleasant, safe or si

f living, much nervous energy, material resources, even human life. Yet if on

d our free world regain the ground, the time, the sheer momentum, lost by such a move. There can and should be changes and improvements in our programs, to meet new situations, serve new needs. But to desert

ee them safe, we must meet the challenge and accept its i

confound Soviet expectations, as our world grows stronger, more united, more attractive to men on both sides of the iron curtain, then inevitably there will come a time of change within the communist world. We do n

s to win by subversion, it is not too much to expect their world to change its character, modera

wer has no basis in consent. Remember they are so afraid of the free world's ideas and ways of life, they do not dare to let their people know ab

ension about our free society. Their world has many elements of strength, but this one fatal flaw: the weakness represented by their iron curtai

ns the confidence and the determination to outmatch the best our adversary can accomplish and to demon

he free nations; upon none

we have the vigor of free men in a free society. We have our liberties. And while we keep them, while we reta

fear of the task we face, fear of adjusting to it, fear that breeds more fear, sapping our faith, corroding our libertie

tion of our tolerance, each new act of enforced conformity, each idle accusation, each demonstrati

mp out our faith in human dignity-fear can. Fear is an enemy within ourselves, and if

in one another, our tolerance, our sense of being neighbors, fellow citizens. We must take our

l truths that give meaning and vitality to the purposes of free people. These values are

hips and uncertainty before, we have adjusted before to changing circumstances.

ur free ways, who stops to remember where we began, what we

n in our country. And I know out of my own e

then look at what our country has become--I am quit

ive security, the foundation-stone of all our actions now, was then strange doctrine, shunned and set aside. Talk about adapting; talk about adjusting; talk about respondi

meaning of our national experience. Let us draw comfort fr

new. That is the way of our society. Circumstances change and current questions take on different forms, new complications, year by

have need for the support of a united people, a confident people, with firm faith in one another and in

all my fellow citiz

our country

*

the Uni

D. Ei

ary 2

eaker, Members of the

ing before you to deliver my

dministration to justify the summons to governmental responsibility issued last

rs with such fortitude and such foresight that it

of such integrity and such efficiency that

creative initiative in our economy, so that its

ent of equality of opportunity for all, so that our Nation will eve

s along which our joint efforts may immediately be dir

action to cover all phases of the responsibilities that devolve upon our country's new leaders. Such a program will be filled out in the weeks ahead