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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13703 Folder ID Number: 13703-008 Folder Title: State of the Union 1/31/90 [OA 83 [0] [8] Stack: Row: Section: Shelf: Position: G 26 19 6 2 Feb. 6 / Administration of Ronald Reagan, 1985 Address Before a Joint Session of the Congress on the State of the Union February 6, 1985 Mr. Speaker, Mr. President, distinguished stand watch on the frontiers of freedom; Members of the Congress, honored guests, For an America of compassion that opens and fellow citizens: its heart to those who cry out for help. I come before you to report on the state We have begun well. But it's only a be- of our Union, and I'm pleased to report that ginning. We're not here to congratulate after 4 years of united effort, the American ourselves on what we have done but to people have brought forth a nation re- challenge ourselves to finish what has not newed, stronger, freer, and more secure yet been done. than before. We're here to speak for millions in our Four years ago we began to change, for- inner cities who long for real jobs, safe ever I hope, our assumptions about govern- neighborhoods, and schools that truly teach. ment and its place in our lives. Out of that We're here to speak for the American change has come great and robust growth- farmer, the entrepreneur, and every in our confidence, our economy, and our worker in industries fighting to modernize role in the world. and compete. And, yes, we're here to stand, Tonight America is stronger because of and proudly so, for all who struggle to the values that we hold dear. We believe break free from totalitarianism, for all who faith and freedom must be our guiding know in their hearts that freedom is the stars, for they show us truth, they make us one true path to peace and human happi- brave, give us hope, and leave us wiser than ness. we were. Our progress began not in Wash- Proverbs tell us, without a vision the ington, DC, but in the hearts of our fami- people perish. When asked what great prin- lies, communities, workplaces, and volun- ciple holds our Union together, Abraham tary groups which, together, are unleashing Lincoln said: "Something in [the] Declara- the invincible spirit of one great nation tion giving liberty, not alone to the people under God. of this country, but hope to the world for all Four years ago we said we would invigo- future time." rate our economy by giving people greater We honor the giants of our history not by freedom and incentives to take risks and going back but forward to the dreams their letting them keep more of what they vision foresaw. My fellow citizens, this earned. We did what we promised, and a nation is poised for greatness. The time has great industrial giant is reborn. come to proceed toward a great new chal- Tonight we can take pride in 25 straight lenge-a second American Revolution of months of economic growth, the strongest hope and opportunity; a revolution carrying in 34 years; a 3-year inflation average of 3.9 us to new heights of progress by pushing percent, the lowest in 17 years; and 7.3 back frontiers of knowledge and space; a million new jobs in 2 years, with more of revolution of spirit that taps the soul of our citizens working than ever before. America, enabling us to summon greater New freedom in our lives has planted the strength than we've ever known; and a rev- rich seeds for future success: olution that carries beyond our shores the For an America of wisdom that honors golden promise of human freedom in a the family, knowing that if [as] the family world of peace. goes, so goes our civilization; Let us begin by challenging our conven- For an America of vision that sees tomor- tional wisdom. There are no constraints on row's dreams in the learning and hard work the human mind, no walls around the we do today; human spirit, no barriers to our progress For an America of courage whose service except those we ourselves erect. Already; men and women, even as we meet, proudly pushing down tax rates has freed our econo- 130 Administration of Ronald Reagan, 1985 / Feb. 6 tate of the my to vault forward to record growth. tax preferences. We will propose a top rate In Europe, they're calling it "the Ameri- of no more than 35 percent, and possibly can Miracle." Day by day, we're shattering lower. And we will propose reducing corpo- accepted notions of what is possible. When rate rates, while maintaining incentives for I was growing up, we failed to see how a capital formation. tiers of freedom; new thing called radio would transform our To encourage opportunity and jobs rather bassion that opens marketplace. Well, today, many have not than dependency and welfare, we will pro- out for help. yet seen how advances in technology are pose that individuals living at or near the But it's only a be- transforming our lives. poverty line be totally exempt from Federal In the late 1950's workers at the AT&T to congratulate income tax. To restore fairness to families, ave done but to sémiconductor plant in Pennsylvania pro- we will propose increasing significantly the ish what has not duced five transistors a day for $7.50 personal exemption. apiece. They now produce over a million And tonight, I am instructing Treasury ir millions in our for less than a penny apiece. Secretary James Baker-I have to get used New laser techniques could revolutionize or real jobs, safe to saying that-to begin working with con- heart bypass surgery, cut diagnosis time for S that truly teach. gressional authors and committees for bi- viruses linked to cancer from weeks to min- or the American partisan legislation conforming to these utes, reduce hospital costs dramatically, and eur, and every principles. We will call upon the American hold out new promise for saving human ing to modernize people for support and upon every man lives. e're here to stand, and woman in this Chamber. Together, we Our automobile industry has overhauled who struggle to can pass, this year, a tax bill for fairness, assembly lines, increased worker productivi- mism, for all who simplicity, and growth, making this econo- ty, and is competitive once again. t freedom is the my the engine of our dreams and America We stand on the threshold of a great abil- nd human happi- the investment capital of the world. So let ity to produce more, do more, be more. us begin. Our economy is not getting older and out a vision the Tax simplification will be a giant step weaker; it's getting younger and stronger. It i what great prin- doesn't need rest and supervision; it needs toward unleashing the tremendous pent-up gether, Abraham new challenge, greater freedom. And that power of our economy. But a second Amer- in [the] Declara- word "freedom" is the key to the second ican revolution must carry the promise of one to the people American revolution that we need to bring opportunity for all. It is time to liberate the o the world for all about. spirit of enterprise in the most distressed Let us move together with an historic areas of our country. our history not by reform of tax simplification for fairness and This government will meet its responsibil- ) the dreams their growth. Last year I asked Treasury Secre- ity to help those in need. But policies that DW citizens, this tary-then-Regan to develop a plan to increase dependency, break up families, less. The time has simplify the tax code, so all taxpayers would and destroy self-respect are not progressive; a great new chal- be treated more fairly and personal tax they're reactionary. Despite our strides in an Revolution of rates could come further down. civil rights, blacks, Hispanics, and all mi- evolution carrying We have cut tax rates by almost 25 per- norities will not have full and equal power gress by pushing cent, yet the tax system remains unfair and until they have full economic power. dge and space; a limits our potential for growth. Exclusions We have repeatedly sought passage of en- taps the soul of and exemptions cause similar incomes to be terprise zones to help those in the aban- summon greater taxed at different levels. Low-income fami- doned corners of our land find jobs, learn known; and a rev- lies face steep tax barriers that make hard skills, and build better lives. This legislation id our shores the lives even harder. The Treasury Depart- is supported by a majority of you. an freedom in a ment has produced an excellent reform Mr. Speaker, I know we agree that there plan, whose principles will guide the final must be no forgotten Americans. Let us iging our conven- proposal that we will ask you to enact. place new dreams in a million hearts and no constraints on One thing that tax reform will not be is a create a new generation of entrepreneurs walls around the tax increase in disguise. We will not jeop- by passing enterprise zones this year. And, S to our progress ardize the mortgage interest deduction that Tip, you could make that a birthday es erect. Already, families need. We will reduce personal tax present. [Laughter] IS freed our econo- rates as low as possible by removing many Nor must we lose the chance to pass our 131 Feb. 6 / Administration of Ronald Reagan, 1985 youth employment opportunity wage pro- aid, will be slowed, but protections for the posal. We can help teenagers, who have the elderly and needy will be preserved. highest unemployment rate, find summer Second, we must not relax our efforts to jobs, so they can know the pride of work restore military strength just as we near our and have confidence in their futures. goal of a fully equipped, trained, and ready We'll continue to support the Job Train- professional corps. National security is gov- ing Partnership Act, which has a nearly ernment's first responsibility; so in past two-thirds job placement rate. Credits in years defense spending took about half the education and health care vouchers will Federal budget. Today it takes less than a help working families shop for services that third. We've already reduced our planned they need. defense expenditures by nearly a hundred Our administration is already encourag- billion dollars over the past 4 years and re- ing certain low-income public housing resi- duced projected spending again this year. dents to own and manage their own dwell- You know, we only have a military-indus- ings. It's time that all public housing resi- trial complex until a time of danger, and dents have that opportunity of ownership. The Federal Government can help create then it becomes the arsenal of democracy. a new atmosphere of freedom. But States Spending for defense is investing in things and localities, many of which enjoy surplus- that are priceless-peace and freedom. es from the recovery, must not permit their Third, we must reduce or eliminate costly tax and regulatory policies to stand as bar- government subsidies. For example, deregu- riers to growth. lation of the airline. industry has led to Let us resolve that we will stop spreading cheaper airfares, but on Amtrak taxpayers dependency and start spreading opportuni- pay about $35 per passenger every time an ty; that we will stop spreading bondage and Amtrak train leaves the station. It's time we start spreading freedom. ended this huge Federal subsidy. There are some who say that growth ini- Our farm program costs have quadrupled tiatives must await final action on deficit in recent years. Yet I know from visiting reductions. Well, the best way to reduce farmers, many in great financial distress, deficits is through economic growth. More that we need an orderly transition to a businesses will be started, more investments market-oriented farm economy. We can made, more jobs created, and more people help farmers best not by expanding Federal will be on payrolls paying taxes. The best payments but by making fundamental re- way to reduce government spending is to forms, keeping interest rates heading down, reduce the need for spending by increasing and knocking down foreign trade barriers prosperity. Each added percentage point to American farm exports. per year of real GNP growth will lead to We're moving ahead with Grace commis- cumulative reduction in deficits of nearly sion reforms to eliminate waste and im- $200 billion over 5 years. prove government's management practices. To move steadily toward a balanced In the long run, we must protect the tax- budget, we must also lighten government's payers from government. And I ask again claim on our total economy. We will not do that you pass, as 32 States have now called this by raising taxes. We must make sure for, an amendment mandating the Federal that our economy grows faster than the Government spend no more than it takes growth in spending by the Federal Govern- in. And I ask for the authority, used respon- ment. In our fiscal year 1986 budget, over- sibly by 43 Governors, to veto individual all government program spending will be items in appropriation bills. Senator Mat- frozen at the current level. It must not be tingly has introduced a bill permitting a 2- one dime higher than fiscal year 1985, and year trial run of the line-item veto. I hope three points are key. you'll pass and send that legislation to my First, the social safety net for the elderly, desk. the needy, the disabled, and unemployed Nearly 50 years of government living will be left intact. Growth of our major beyond its means has brought us to a time health care programs, Medicare and Medic- of reckoning. Ours is but a moment in histo- 132 Administration of Ronald Reagan, 1985 / Feb. 6 :ections for the ry. But one moment of courage, idealism, Superfund program to continue cleaning up eserved. and bipartisan unity can change American hazardous waste sites which threaten ( our efforts to history forever. human health and the environment. as we near our Sound monetary policy is key to long-run- Now, there's another great heritage to ned, and ready ning economic strength and stability. We speak of this evening. Of all the changes security is gov- will continue to cooperate with the Federal that have swept America the past 4 years, y; so in past Reserve Board, seeking a steady policy that none brings greater promise than our redis- about half the ensures price stability without keeping in- covery of the values of faith, freedom, kes less than a terest rates artificially high or needlessly family, work, and neighborhood. d our planned holding down growth. We see signs of renewal in increased at- arly a hundred Reducing unneeded redtape and regula- tendance in places of worship; renewed op- 4 years and re- tions, and deregulating the energy, trans- timism and faith in our future; love of coun- gain this year. portation, and financial industries have un- try rediscovered by our young, who are military-indus- leashed new competition, giving consumers leading the way. We've rediscovered that more choices, better services, and lower of danger, and work is good in and of itself, that it enno- of democracy. prices. In just one set of grant programs we bles us to create and contribute no matter have reduced 905 pages of regulations to sting in things how seemingly humble our jobs. We've 31. We seek to fully deregulate natural gas freedom. seen a powerful new current from an old to bring on new supplies and bring us closer and honorable tradition-American gener- eliminate costly to energy independence. Consistent with ample, deregu- osity. safety standards, we will continue removing ry has led to From thousands answering Peace Corps restraints on the bus and railroad industries, itrak taxpayers appeals to help boost food production in we will soon end up legislation-or send up every time an Africa, to millions volunteering time, corpo- legislation, I should say-to return Conrail on. It's time we rations adopting schools, and communities to the private sector where it belongs, and idy. pulling together to help the neediest among we will support further deregulation of the üs at home, we have refound our values. lve quadrupled trucking industry. Private sector initiatives are crucial to our / from visiting Every dollar the Federal Government future. ancial distress, does not take from us, every decision it I thank the Congress for passing equal transition to a does not make for us will make our econo- omy. We can my stronger, our lives more abundant, our access legislation giving religious groups the anding Federal same right to use classrooms after school future more free. indamental re- Our second American revolution will that other groups enjoy. But no citizen heading down, push on to new possibilities not only on need tremble, nor the world shudder, if a Earth but in the next frontier of space. De- child stands in a classroom and breathes a trade barriers spite budget restraints, we will seek record prayer. We ask you again, give children funding for research and development. back a right they had for a century and a Grace commis- waste and im- We've seen the success of the space shut- half or more in this country. ment practices. tle. Now we're going to develop a perma- The question of abortion grips our nation. rotect the tax- nently manned space station and new op- Abortion is either the taking of a human life portunities for free enterprise, because in or it isn't. And if it is-and medical technol- nd I ask again ave now called the next decade Americans and our friends ogy is increasingly showing it is-it must be ng the Federal around the world will be living and work- stopped. It is a terrible irony that while e than it takes ing together in space. some turn to abortion, so many others who y, used respon- In the zero gravity of space, we could cannot become parents cry out for children veto individual manufacture in 30 days lifesaving medicines to adopt. We have room for these children. Senator Mat- it would take 30 years to make on Earth. We can fill the cradles of those who want a permitting a 2- We can make crystals of exceptional purity child to love. And tonight I ask you in the m veto. I hope to produce super computers, creating jobs, Congress to move this year on legislation to gislation to my technologies, and medical breakthroughs protect the unborn. beyond anything we ever dreamed possible. In the area of education, we're returning ernment living As we do all this, we'll continue to pro- to excellence, and again, the heroes are our ht us to a time tect our natural resources. We will seek re- people, not government. We're stressing oment in histo- authorization and expanded funding for the basics of discipline, rigorous testing, and 133 Feb. 6 / Administration of Ronald Reagan, 1985 homework, while helping children become that would lower the risk of war and reduce computer-smart as well. For 20 years scho- the size of nuclear arsenals. Now our deter- lastic aptitude test scores of our high school mination to maintain a strong defense has students went down, but now they have influenced the Soviet Union to return to gone up 2 of the last 3 years. We must go the bargaining table. Our negotiators must forward in our commitment to the new be able to go to that table with the united basics, giving parents greater authority and support of the American people. All of us making sure good teachers are rewarded have no greater dream than to see the day for hard work and achievement through when nuclear weapons are banned from merit pay. this Earth forever. Of all the changes in the past 20 years, Each Member of the Congress has a role none has more threatened our sense of na- to play in modernizing our defenses, thus tional well-being than the explosion of vio- lent crime. One does not have to be at- supporting our chances for a meaningful arms agreement. Your vote this spring on tacked to be a victim. The woman who the Peacekeeper missile will be a critical must run to her car after shopping at night test of our resolve to maintain the strength is a victim. The couple draping their door we need and move toward mutual and veri- with locks and chains are victims; as is the fiable arms reductions. tired, decent cleaning woman who can't ride a subway home without being afraid. For the past 20 years we've believed that We do not seek to violate the rights of no war will be launched as long as each side defendants. But shouldn't we feel more knows it can retaliate with a deadly coun- compassion for the victims of crime than for terstrike. Well, I believe there's a better those who commit crime? For the first time way of eliminating the threat of nuclear in 20 years, the crime index has fallen 2 war. It is a Strategic Defense Initiative years in a row. We've convicted over 7,400 aimed ultimately at finding a nonnuclear drug offenders and put them, as well as defense against ballistic missiles. It's the leaders of organized crime, behind bars in most hopeful possibility of the nuclear age. record numbers. But it's not very well understood. But we must do more. I urge the House Some say it will bring war to the heavens, to follow the Senate and enact proposals but its purpose is to deter war in the heav- permitting use of all reliable evidence that ens and on Earth. Now, some say the re- police officers acquire in good faith. These search would be expensive. Perhaps, but it proposals would also reform the habeas could save millions of lives, indeed human- corpus laws and allow, in keeping with the ity itself. And some say if we build such a will of the overwhelming majority of Amer- system, the Soviets will build a defense icans, the use of the death penalty where system of their own. Well, they already necessary. have strategic defenses that surpass ours; a There can be no economic revival in civil defense system, where we have almost ghettos when the most violent among us none; and a research program covering are allowed to roam free. It's time we re- roughly the same areas of technology that stored domestic tranquility. And we mean we're now exploring. And finally some say to do just that. the research will take a long time. Well, the Just as we're positioned as never before answer to that is: Let's get started. to secure justice in our economy, we're Harry Truman once said that, ultimately, poised as never before to create a safer, our security and the world's hopes for freer, more peaceful world. Our alliances peace and human progress "lie not in meas- are stronger than ever. Our economy is ures of defense or in the control of weap- stronger than ever. We have resumed our ons, but in the growth and expansion of historic role as a leader of the free world. freedom and self-government." And all of these together are a great force And tonight, we declare anew to our for peace. fellow citizens of the world: Freedom is not Since 1981 we've been committed to the sole prerogative of a chosen few; it is seeking fair and verifiable arms agreements the universal right of all God's children. 134 Administration of Ronald Reagan, 1985 / Feb. 6 ar and reduce Look to where peace and prosperity flour- those who are risking their lives-on every low our deter- ish today. It is in homes that freedom built. continent, from Afghanistan to Nicaragua- g defense has Victories against poverty are greatest and to defy Soviet-supported aggression and to return to peace most secure where people live by secure rights which have been ours from gotiators must laws that ensure free press, free speech, and birth. ith the united freedom to worship, vote, and create The Sandinista dictatorship of Nicaragua, ople. All of us wealth. with full Cuban-Soviet bloc support, not to see the day Our mission is to nourish and defend only persecutes its people, the church, and banned from freedom and democracy, and to communi- denies a free press, but arms and provides cate these ideals everywhere we can. bases for Communist terrorists attacking ress has a role America's economic success is freedom's neighboring states. Support for freedom defenses, thus success; it can be repeated a hundred times fighters is self-defense and totally consistent a meaningful in a hundred different nations. Many coun- with the OAS and U.N. Charters. It is essen- this spring on tries in east Asia and the Pacific have few tial that the Congress continue all facets of be a critical resources other than the enterprise of their our assistance to Central America. I want to n the strength own people. But through low tax rates and work with you to support the democratic utual and veri- free markets they've soared ahead of cen- forces whose struggle is tied to our own tralized economies. And now China is open- security. believed that ing up its economy to meet its needs. And tonight, I've spoken of great plans ng as each side We need a stronger and simpler approach and great dreams. They're dreams we can 1 deadly coun- to the process of making and implementing make come true. Two hundred years of ere's a better trade policy, and we'll be studying potential American history should have taught us that eat of nuclear changes in that process in the next few nothing is impossible. ense Initiative weeks. We've seen the benefits of free Ten years ago a young girl left Vietnam a nonnuclear trade and lived through the disasters of pro- with her family, part of the exodus that ssiles. It's the tectionism. Tonight I ask all our trading followed the fall of Saigon. They came. to e nuclear age. partners, developed and developing alike, the United States with no possessions and od. to join us in a new round of trade negotia- 0 the heavens, tions to expand trade and competition and not knowing a word of English. Ten years strengthen the global economy-and to ago-the young girl studied hard, learned ar in the heav- English, and finished high school in the top ne say the re- begin it in this next year. There are more than 3 billion human of her class. And this May, May 22d to be Perhaps, but it beings living in Third World countries with exact, is a big date on her calendar. Just 10 ndeed human- an average per capita income of $650 a years from the time she left Vietnam, she e build such a tild a defense year. Many are victims of dictatorships that will graduate from the United States Mili- impoverished them with taxation and cor- tary Academy at West Point. I thought you they already ruption. Let us ask our allies to join us in a might like to meet an American hero surpass ours; a practical program of trade and assistance named Jean Nguyen. ve have almost that fosters economic development through Now, there's someone else here tonight, gram covering personal incentives to help these people born 79 years ago. She lives in the inner echnology that climb from poverty on their own. city, where she cares for infants born of nally some say We cannot play innocents abroad in a mothers who are heroin addicts. The chil- time. Well, the world that's not innocent; nor can we be dren, born in withdrawal, are sometimes rted. passive when freedom is under seige. With- even dropped on her doorstep. She helps nat, ultimately, out resources, diplomacy cannot succeed. them with love. Go to her house some d's hopes for Our security assistance programs help night, and maybe you'll see her silhouette ie not in meas- friendly governments defend themselves against the window as she walks the floor ntrol of weap- and give them confidence to work for talking softly, soothing a child in her arms- I expansion of peace. And I hope that you in the Congress Mother Hale of Harlem, and she, too, is an will understand that, dollar for dollar, secu- American hero. anew to our rity assistance contributes as much to global Jean, Mother Hale, your lives tell us that Freedom is not security as our own defense budget. the oldest American saying is new again: osen few; it is We must stand by all our democratic Anything is possible in America if we have God's children. allies. And we must not break faith with the faith, the will, and the heart. History is 135 Feb. 6 / Administration of Ronald Reagan, 1985 asking us once again to be a force for good the House Chamber of the Capitol. He was in the world. Let us begin in unity, with introduced by Thomas P. O'Neill, Jr., Speak- justice, and love. er of the House of Representatives. The ad- Thank you, and God bless you. dress was broadcast live on nationwide Note: The President spoke at 9:05 p.m. in radio and television. Informal Exchange With Reporters Prior to a Meeting With Prime Minister Robert Hawke of Australia February 7, 1985 Q. Mr. President, does the ANZUS alli- The President. About what? ance have any future, given the lack of co- Q. What does the U.S. intend to do? Will operation we've been getting from our we be considering economic sanctions or South Pacific allies? reviewing our relationship with New Zea- The President. Well, the only thing that land? has happened that disturbs that is the New The President. Oh, this is I don't think Zealand position on our vessels there and any time to discuss that. the right of entry at the ports. But, other than that, I think our ANZUS alliance is Q. Will you be talking to your guest about very sound and very solid. And I think the a separate alliance. between the U.S. and presence here of the first head of state, in Australia and excluding New Zealand? the new term, the Prime Minister of Aus- The President. No. As I say, we feel the tralia, is evidence of that. ANZUS alliance is very much alive and Q. Doesn't the announcement yesterday working. of a change of plans on the MX test give Q. How do you feel about the reaction to you any reason for concern, Mr. President? your speech last night, sir? The President. No, because that was The President. Well, that's a whole differ- pretty much our own idea. We had several ent subject. I only answered those other alternatives, and we made a choice. questions, because I thought that I couldn't Q. Are you concerned at all about a avoid them on the subject they were on. ripple effect throughout the other allies? But I've been pleased, yes. The President. No. Q. What does the U.S. intend to do, sir, about the New Zealand position on our ves- Note: The exchange began at 11:35 a.m. in sels? the Oval Office at the White House. Appointment of Robert H. Tuttle as Deputy Assistant to the President and Director of Presidential Personnel February 7, 1985 The President today announced the ap- A successful west coast business executive pointment of Robert H. Tuttle as Deputy for the past 15 years, Mr. Tuttle served as Assistant to the President and Director of president of three automobile dealerships in Presidential Personnel. Los Angeles and Tucson prior to accepting Mr. Tuttle has served as Special Assistant his position on the White House staff. to the President in the Office of Presiden- An active member of the California Re- tial Personnel since December 1982. 136 John F. Kennedy, 1962 Jan. ri [7] nt spoke at the Buckeye Building Your recommendations properly recognize organizations to support and improve educational ads in Columbus, Ohio. In his both sides of this problem. I am grateful facilities. = referred to William L. Coleman, for your help. 4. Acceptance of responsibility by management Democratic Executive Committee for measures to reduce the impact on workers of technological change. stice Carl V. Weygandt of the NOTE: The Committee's first report, dated January 5. Public and private support for retraining of me Court, the Reverend Reed II and entitled "The Benefits and Problems Incident displaced workers, for financial help to such workers od Samaritan Baptist Church in to Automation and Other Technological Advances" in periods of unemployment, and for protection of ost Reverend Clarence G. Issen- (25 pp., processed), was released with the President's their job equities and security. Columbus, and U.S. Senators statement. It was presented to the President at the 6. Improvement of public employment services. and Frank J. Lausche of Ohio. White House by the Chairman, Secretary of Labor 7. Intensified efforts to end discriminatory em- Arthur J. Goldberg, and the Vice Chairman, Sec- ployment practices. retary of Commerce Luther H. Hodges, accompanied 8. Advance planning for short-term public works g With General by members of the 19-man Committee. (For estab- projects in possible areas of technological unem- lishment see 1961 volume, this series, Item 40.) ployment. The Committee's recommendations cover the fol- 9. Consideration of possible monetary and fiscal lowing matters: measures, including tax reductions, to stimulate e have reached full agree- I. Adoption of policies to promote a high rate of business and employment. icy to be followed during economic growth and fuller utilization of resources. IO. Consideration of possible reductions in basic 2. Collection and dissemination of information on work periods. job opportunities and requirements. Incorporated in the report are dissenting state- S one more way in which 3. Cooperation between Government and private ments by two of the Committee members. al Clay, and I can keep in and we continue to be for- him as the senior American 7 Annual Message to the Congress on the State of the Union. January II, 1962 . Clay was serving as the Pres- esentative in Berlin, with the [ As delivered in person before a joint session ] Mr. Vice President, my old colleague from ments, look to us-not to our wealth or Massachusetts and your new Speaker, John power, but to the splendor of our ideals. McCormack, Members of the 87th Congress, For our Nation is commissioned by history ladies and gentlemen: to be either an observer of freedom's failure This week we begin anew our joint and or the cause of its success. Our overriding I to know we are glad to separate efforts to build the American future. obligation in the months ahead is to fulfill hite House. Thank you. But, sadly, we build without a man who the world's hopes by fulfilling our own faith. hear from them? linked a long past with the present and looked strongly to the future. "Mister Sam" I. STRENGTHENING THE ECONOMY velcomed the boys in the Rose Rayburn is gone. Neither this House nor nded by singing the Gallus the Nation is the same without him. That task must begin at home. For if we an Kodaly's "Angels. and the Members of the Congress, the Constitu- cannot fulfill our own ideals here, we cannot tion makes us not rivals for power but expect others to accept them. And when the partners for progress. We are all trustees youngest child alive today has grown to the for the American people, custodians of the cares of manhood, our position in the world on Automation American heritage. It is my task to report will be determined first of all by what pro- the State of the Union-to improve it is the visions we make today-for his education, ent Policy. task of us all. his health, and his opportunities for a good In the past year, I have travelled not only home and a good job and a good life. across our own land but to other lands— At home, we began the year in the valley dvantage of every oppor- to the North and the South, and across the of recession-we completed it on the high gical development. But seas. And I have found-as I am sure you road of recovery and growth. With the help di the human values in- have, in your travels-that people every- of new congressionally approved or admin- where, in spite of occasional disappoint- istratively increased stimulants to our econ- 5 [7] Jan. II Public Papers of the Presidents omy, the number of major surplus labor upon a given rise in the rate of unemploy- areas has declined from IOI to 60; non- ment, to accelerate Federal and federally- agricultural employment has increased by aided capital improvement programs; and more than a million jobs; and the average (3) Third, a permanent strengthening of factory work-week has risen to well over 40 our unemployment compensation system-to hours. At year's end the economy which maintain for our fellow citizens searching Mr. Khrushchev once called a "stumbling for a job who cannot find it, their purchasing horse" was racing to new records in con- power and their living standards without sumer spending, labor income, and indus- constant resort-as we have seen in recent trial production. years by the Congress and the administra- We are gratified-but we are not satisfied. tions-to temporary supplements. Too many unemployed are still looking for If we enact this six-part program, we can the blessings of prosperity. As those who show the whole world that a free economy leave our schools and farms demand new need not be an unstable economy-that a jobs, automation takes old jobs away. To free system need not leave men unem- expand our growth and job opportunities, ployed-and that a free society is not only I urge on the Congress three measures: the most productive but the most stable form (I) First, the Manpower Training and of organization yet fashioned by man. Development Act, to stop the waste of able- bodied men and-women who want to work, ii. FIGHTING INFLATION but whose only skill has been replaced by a machine, or moved with a mill, or shut down But recession is only one enemy of a free with a mine; economy-inflation is another. -Last year, (2) Second, the Youth Employment Op- 1961, despite rising production and demand, portunities Act, to help train and place not consumer prices held almost steady-and only the one million young Americans who wholesale prices declined. This is the best are both' out of school and out of work, but record of overall price stability of any com- the twenty-six million young Americans parable period of recovery since the end of entering the labor market in this decade; and World War II. (3) Third, the 8 percent tax credit for Inflation too often follows in the shadow investment in machinery and equipment, of growth-while price stability is made which, combined with planned revisions of easy by stagnation or controls. But we depreciation allowances, will spur our mean to maintain both stability and growth modernization, our growth, and our ability in a climate of freedom. to compete abroad. Our first line of defense against inflation Moreover-pleasant as it may be to bask is the good sense and public spirit of busi- in the warmth of recovery-let us not forget ness and labor-keeping their total increases that we have suffered three recessions in the in wages and profits in step with produc- last 7 years. The time to repair the roof is tivity. There is no single statistical test to when the sun is shining-by filling three guide each company and each union. But basic gaps in our anti-recession protection. I strongly urge them-for their country's We need: interest, and for their own-to apply the (I) First, Presidential standby authority, test of the public interest to these trans- subject to congressional veto, to adjust per- actions. sonal income tax rates downward within a Within this same framework of growth specified range and time, to slow down an and wage-price stability: economic decline before it has dragged us -This administration has helped keep our all down; economy competitive by widening the access (2) Second, Presidential standby authority, of small business to credit and Govern- 6 John F. Kennedy, 1962 Jan. II [7] the rate of unemploy- ment contracts, and by stepping up the the Internal Revenue, the Bureau of Nar- Federal and federally- drive against monopoly, price-fixing, and cotics, and many others. We shall need ment programs; and racketeering; further anti-crime, mass transit, and trans- anent strengthening of -We will submit a Federal Pay Reform portation legislation-and new tools to fight empensation system-to bill aimed at giving our classified, postal, air pollution. And with all this effort low citizens searching and other employees new pay scales more under way, both equity and commonsense find it, their purchasing comparable to those of private industry; require that our nation's urban areas-con- ing standards without -We are holding the fiscal 1962 budget taining three-fourths of our population-sit ve have seen in recent deficit far below the level incurred after the as equals at the Cabinet table. I urge a new SS and the administra- last recession in 1958; and, finally, Department of Urban Affairs and Housing. supplements. -I am submitting for fiscal 1963 a bal- :-part program, we can anced Federal Budget. AGRICULTURE AND RESOURCES Id that a free economy This is a joint responsibility, requiring table economy-that a Congressional cooperation on appropriations, A strong America also depends on its ot leave men unem- and on three sources of income in particular: farms and natural resources. American ree society is not only (I) First, an increase in postal rates, to farmers took heart in 1961-from a billion ut the most stable form end the postal deficit; dollar rise in farm income-and from a shioned by man. (2) Secondly, passage of the tax reforms hopeful start on reducing the farm surpluses. previously urged, to remove unwarranted But we are still operating under a patch- tax preferences, and to apply to dividends work accumulation of old laws, which cost G INFLATION and to interest the same withholding re- us $1 billion a year in CCC carrying charges ly one enemy of a free quirements we have long applied to wages; alone, yet fail to halt rural poverty or boost S another. Last year, and farm earnings. roduction and demand, (3) Third, extension of the present ex- Our task is to master and turn to fully d almost steady-and cise and corporation tax rates, except for fruitful ends the magnificent productivity of ined. This is the best those changes-which will be recommended our farms and farmers. The revolution on e stability of any com- in a message-affecting transportation. our own countryside stands in the sharpest overy since the end of contrast to the repeated farm failures of the Communist nations and is a source of pride III. GETTING AMERICA MOVING follows in the shadow to us all. Since I950 our agricultural output rice stability is made But a stronger nation and economy re- per man-hour has actually doubled! With- or controls. But we quire more than a balanced Budget. They out new, realistic measures, it will someday th stability and growth require progress in those programs that spur swamp our farmers and our taxpayers in a om. our growth and fortify our strength. national scandal or a farm depression. efense against inflation I will, therefore, submit to the Congress CITIES d public spirit of busi- a new comprehensive farm program-tai- ing their total increases A strong America depends on its cities— lored to fit the use of our land and the in step with produc- America's glory, and sometimes America's supplies of each crop to the long-range needs single statistical test to shame. To substitute sunlight for conges- of the sixties-and designed to prevent and each union. But tion and progress for decay, we have stepped chaos in the sixties with a program of n-for their country's up existing urban renewal and'housing pro- commonsense. grams, and launched new ones-redoubled We also need for the sixties-if we are :ir own-to apply the nterest to these trans- the attack on water pollution-speeded aid to bequeath our full national estate to our to airports, hospitals, highways, and our de- heirs-a new long-range conservation and framework of growth clining mass transit systems-and secured recreation program-expansion of our su- ity: new weapons to combat organized crime, perb national parks and forests-preserva- racketeering, and youth delinquency, as- tion of our authentic wilderness areas- ion has helped keep our by widening the access sisted by the coordinated and hard-hitting new starts on water and power projects as ) credit and Govern- efforts of our investigative services: the FBI, our population steadily increases-and ex- 7 [7] Jan. II Public Papers of the Presidents panded REA generation and transmission developing the Nation's wealth for its own loans. sake. Wealth is the means-and people are CIVIL RIGHTS the ends. All our material riches will avail But America stands for progress in human us little if we do not use them to expand the rights as well as economic affairs, and a opportunities of our people. strong America requires the assurance of Last year, we improved the diet of needy full and equal rights to all its citizens, of people-provided more hot lunches and fresh any race or of any color. This administra- milk to school children-built more college tion has shown as never before how much dormitories-and, for the elderly, expanded could be done through the full use of Ex- private housing, nursing homes, heath serv- ecutive powers-through the enforcement ices, and social security. But we have just of laws already passed by the Congress- begun. through persuasion, negotiation, and liti- To help those least fortunate of all, I am gation, to secure the constitutional rights of recommending a new public welfare pro- all: the right to vote, the right to travel gram, stressing services instead of support, without hindrance across State lines, and rehabilitation instead of relief, and training the right to free public education. for useful work instead of prolonged I issued last March a comprehensive order dependency. to guarantee the right to equal employment To relieve the critical shortage of doctors opportunity in all Federal agencies and con- and dentists-and this is a matter which tractors. The Vice President's Committee should concern us all-and expand research, thus created has done much, including the I urge action to aid medical and dental col- voluntary "Plans for Progress" which, in all leges and schölarships and to establish-new sections of the country, are achieving a quiet National Institutes of Health. but striking success in opening up to all To take advantage of modern vaccination races new professional, supervisory, and achievements, I am proposing a mass im- other job opportunities. munization program, aimed at the virtual But there is much more to be done-by the elimination of such ancient enemies of our Executive, by the courts, and by the Con- children as polio, diphtheria, whooping gress. Among the bills now pending before cough, and tetanus. you, on which the executive departments To protect our consumers from the care- will comment in detail, are appropriate less and the unscrupulous, I shall recommend methods of strengthening these basic rights improvements in the Food and Drug laws- which have our full support. The right to strengthening inspection and standards, halt- vote, for example, should no longer be de- ing unsafe and worthless products, prevent- nied through such arbitrary devices on a ing misleading labels, and cracking down on local level, sometimes abused, such as literacy the illicit sale of habit-forming drugs. tests and poll taxes. As we approach the But in matters of health, no piece of un- rooth anniversary, next January, of the finished business is more important or more Emancipation Proclamation, let the acts of urgent than the enactment under the social every branch of the Government-and every security system of health insurance for the citizen-portray that "righteousness does aged. exalt a nation." For our older citizens have longer and more frequent illnesses, higher hospital and HEALTH AND WELFARE medical bills and too little income to pay Finally, a strong America cannot neglect them. Private health insurance helps very the aspirations of its citizens-the welfare few-for its cost is high and its coverage of the needy, the health care of the elderly, limited. Public welfare cannot help those the education of the young. For we are not too proud to seek relief but hard-pressed to 8 John F. Kennedy, 1962 Jan. II [7] n's wealth for its own pay their own bills. Nor can their children "Civilization," said H. G. Wells, "is a means-and people are or grandchildren always sacrifice their own race between education and catastrophe." aterial richés will avail health budgets to meet this constant drain. It is up to you in this Congress to determine use them to expand the Social security has long helped to meet the the winner of that race. eople. hardships of retirement, death, and disability. These are not unrelated measures ad- oved the diet of needy I now urge that its coverage be extended dressed to specific gaps or grievances in our re hot lunches and fresh without further delay to provide health in- national life. They are the pattern of our en-built more college surance for the elderly. intentions and the foundation of our hopes. r the elderly, expanded "I believe in democracy," said Woodrow ing homes, heath serv- EDUCATION Wilson, "because it releases the energy of ity. But we have just Equally important to our strength is the every human being." The dynamic of quality of our education. Eight million democracy is the power and the purpose of t fortunate of all, I am adult Americans are classified as functionally the individual, and the policy of this admin- W public welfare pro- illiterate. This is a disturbing figure-re- istration is to give to the individual the ces instead of support, flected in Selective Service rejection rates— opportunity to realize his own highest of relief, and training reflected in welfare rolls and crime rates. possibilities. instead of prolonged And I shall recommend plans for a massive Our program is to open to all the oppor- attack to end this adult illiteracy. tunity for steady and productive employ- ical shortage of doctors I shall also recommend bills to improve ment, to remove from all the handicap of his is a matter which educational quality, to stimulate the arts, arbitrary or irrational exclusion, to offer -and expand research, and, at the college level, to provide Federal to all the facilities for education and health medical and dental col- loans for the construction of academic facili- and welfare, to make society the servant of )S and to establish new ties and federally financed scholarships. the individual and the individual the source f Health. If this Nation is to grow in wisdom and of progress, and thus to realize for all the of modern vaccination strength, then every able high school gradu- full promise of American life. proposing a mass im- ate should have the opportunity to develop 1, aimed at the virtual his talents. Yet nearly half lack either the IV. OUR GOALS ABROAD ancient enemies of our funds or the facilities to attend college. diphtheria, whooping Enrollments are going to double in our col- All of these efforts at home give meaning leges in the short space of IO years. The to our efforts abroad. Since the close of the nsumers from the care- annual cost per student is skyrocketing to Second World War, a global civil war has ilous, I shall recommend astronomical levels-now averaging $1,650 divided and tormented mankind. But it is Food and Drug laws- a year, although almost half of our families not our military might, or our higher stand- tion and standards, halt- earn less than $5,000. They cannot afford ard of living, that has most distinguished us thless products, prevent- such costs-but this Nation cannot afford to from our adversaries. It is our belief that i, and cracking down on maintain its military power and neglect its the state is the servant of the citizen and it-forming drugs. brainpower. not his master. health, no piece of un- But excellence in education must begin at This basic clash of ideas and wills is but nore important or more the elementary level. I sent to the Congress one of the forces reshaping our globe-swept ctment under the social last year a proposal for Federal aid to public as it is by the tides of hope and fear, by ealth insurance for the school construction and teachers' salaries. crises in the headlines today that become I believe that bill, which passed the Senate mere footnotes tomorrow. Both the suc- tizens have longer and and received House Committee approval, cesses and the setbacks of the past year ses, higher hospital and offered the minimum amount required by remain on our agenda of unfinished busi- 00 little income to pay our needs and-in terms of across-the-board ness. For every apparent blessing contains th insurance helps very aid-the maximum scope permitted by our the seeds of danger-every area of trouble high and its coverage Constitution. I therefore see no reason to gives out a ray of hope-and the one un- lfare cannot help those weaken or withdraw that bill: and I urge its changeable certainty is that nothing is elief but hard-pressed to passage at this session. certain or unchangeable. 90975-63-5 9 [7] Jan. II Public Papers of the Presidents Yet our basic goal remains the same: a insure the continuing strength of our nuclear peaceful world community of free and in- deterrent. dependent states-free to choose their own But our strength may be tested at many future and their own system, so long as it levels. We intend to have at all times the does not threaten the freedom of others. capacity to resist non-nuclear or limited Some may choose forms and ways that attacks-as a complement to our nuclear we would not choose for ourselves-but it capacity, not as a substitute. We have re- is not for us that they are choosing. We jected any all-or-nothing posture which can welcome diversity-the Communists would leave no choice but inglorious retreat cannot. For we offer a world of choice- or unlimited retaliation. they offer the world of coercion. And the Thus we have doubled the number of way of the past shows clearly that freedom, ready combat divisions in the Army's stra- not coercion, is the wave of the future. At tegic reserve-increased our troops in times our goal has been obscured by crisis or Europe-built up the Marines-added new endangered by conflict-but it draws sus- sealift and airlift capacity-modernized our tenance from five basic sources of strength: weapons and ammunition-expanded our -the moral and physical strength of the anti-guerrilla forces-and increased the United States; active fleet by more than 70 vessels and our -the united strength of the Atlantic Com- tactical air forces by nearly a dozen wings. munity; Because we needed to reach this higher -the regional strength of our Hemi- long-term level of readiness more quickly, spheric relations; 155,000 members of the Reserve and Na- -the creative strength of our efforts in tional Guard were activated under the Act the new and developing and of this Congress. Some disruptions and dis- -the peace-keeping strength of the tress were inevitable. But the overwhelming United Nations. majority bear their burdens-and their Nation's burdens-with admirable and tra- ditional devotion. V. OUR MILITARY STRENGTH In the coming year, our reserve programs Our moral and physical strength begins will be revised-two Army Divisions will, at home as already discussed. But it includes I hope, replace those Guard Divisions on our military strength as well. So long as duty-and substantial other increases will fanaticism and fear brood over the affairs boost our Air Force fighter units, the pro- of men, we must arm to deter others from curement of equipment, and our continental aggression. defense and warning efforts. The Nation's In the past I2 months our military posture first serious civil defense shelter program is has steadily improved. We increased the under way, identifying, marking, and stock- previous defense budget by I5 percent-not ing 50 million spaces; and I urge your ap- in the expectation of war but for the preser- proval of Federal incentives for the construc- vation of peace. We more than doubled our tion of public fall-out shelters in schools and acquisition rate of Polaris submarines-we hospitals and similar centers. doubled the production capacity for Minute- man missiles-and increased by 50 percent VI. THE UNITED NATIONS the number of manned bombers standing But arms alone are not enough to keep the ready on a I5 minute alert. This year the peace-it must be kept by men. Our instru- combined force levels planned under our ment and our hope is the United Nations- new Defense budget-including nearly three and I see little merit in the impatience of hundred additional Polaris and Minuteman those who would abandon this imperfect missiles-have been precisely calculated to world instrument because they dislike our IO John F. Kennedy, 1962 Jan. II [7] g strength of our nuclear imperfect world. For the troubles of a much higher than our share of the annual world organization merely reflect the assessment-and the bond issue will in effect may be tested at many troubles of the world itself. And if the reduce our disproportionate obligation, and to have at all times the organization is weakened, these troubles can for these reasons, I am urging Congress to non-nuclear or limited only increase. We may not always agree approve our participation. olement to our nuclear with every detailed action taken by every With the approval of this Congress, we ubstitute. We have re- officer of the United Nations, or with every have undertaken in the past year a great new nothing posture which voting majority. But as an institution, it effort in outer space. Our aim is not simply ice but inglorious retreat should have in the future, as it has had in to be first on the moon, any more than ation. the past since its inception, no stronger or Charles Lindbergh's real aim was to be the loubled the number of more faithful member than the United States first to Paris. His aim was to develop the ions in the Army's stra- of America. techniques of our own country and other reased our troops in In 1961 the peace-keeping strength of the countries in the field of air and the atmos- he Marines-added new United Nations was reinforced. And those phere, and our objective in making this pacity-modernized our who preferred or predicted its demise, en- effort, which we hope will place one of our unition-expanded our visioning a troika in the seat of Hammar- citizens on the moon, is to develop in a new es-and increased the skjold-or Red China inside the Assembly- frontier of science, commerce and coopera- than 7° vessels and our have seen instead a new vigor, under a new tion, the position of the United States and nearly a dozen wings. Secretary General and a fully independent the Free World. led to reach this higher Secretariat. In making plans for a new This Nation belongs among the first to readiness more quickly, forum and principles on disarmament-for explore it, and among the first-if not the of the Reserve and Na- peace-keeping in outer space-for a decade first-we shall be. We are offering our activated under the Act of development effort-the UN fulfilled its know-how and our cooperation to the ome disruptions and dis- Charter's lofty aim. United Nations. Our satellites will soon be. :. But the overwhelming Eighteen months ago the tangled and providing other nations with improved eir burdens-and their turbulent Congo presented the UN with its weather observations. And I shall soon send with admirable and tra- gravest challenge. The prospect was one of to the Congress a measure to govern the chaos-or certain big-power confrontation, financing and operation of an International ar, our reserve programs with all of its hazards and all of its risks, Communications Satellite system, in a man- 70 Army Divisions will, to us and to others. Today the hopes have ner consistent with the public interest and ose Guard Divisions on improved for peaceful conciliation within a our foreign policy. tial other increases will united Congo. This is the objective of our But peace in space will help us naught :e fighter units, the pro- policy in this important area. once peace on earth is gone. World order nent, and our continental No policeman is universally popular- will be secured only when the whole world ng efforts. The Nation's particularly when he uses his stick to restore has laid down these weapons which seem to efense shelter program is law and order on his beat. Those members offer us present security but threaten the ing, marking, and stock- who are willing to contribute their votes and future survival of the human race. That ces; and I urge your ap- their views-but very little else-have cre- armistice day seems very far away. The vast icentives for the construc- ated a serious deficit by refusing to pay their resources of this planet are being devoted ut shelters in schools and share of special UN assessments. Yet they more and more to the means of destroying, ar centers. do pay their annual assessments to retain instead of enriching, human life. their votes-and a new UN Bond issue, But the world was not meant to be a prison INITED NATIONS financing special operations for the next 18 in which man awaits his execution. Nor re not enough to keep the months, is to be repaid with interest from has mankind survived the tests and trials of kept by men. Our instru- these regular assessments. This is clearly in thousands of years to surrender everything- : is the United Nations— our interest. It will not only keep the UN including its existence-now. This Nation erit in the impatience of solvent, but require all voting members to has the will and the faith to make a supreme abandon this imperfect pay their fair share of its activities. Our effort to break the log jam on disarmament because they dislike our share of special operations has long been and nuclear tests-and we will persist until II [7] Jan. II Public Papers of the Presidents we prevail, until the rule of law has replaced aid instead of military, individual plans to the ever dangerous use of force. meet the individual needs of the nations, and new standards on what they must do to marshal their own resources. VII. LATIN AMERICA A newly conceived Peace Corps is win- I turn now to a prospect of great promise: ning friends and helping people in fourteen our Hemispheric relations. The Alliance countries-supplying trained and dedicated for Progress is being rapidly transformed young men and women, to give these new from proposal to program. Last month in nations a hand in building a society, and a Latin America I saw for myself the quicken- glimpse of the best that is in our country. ing of hope, the revival of confidence, the If there is a problem here, it is that we new trust in our country-among workers cannot supply the spontaneous and mount- and farmers as well as diplomats. We have ing demand. pledged our help in speeding their economic, A newly-expanded Food for Peace Pro- educational, and social progress. The Latin gram is feeding the hungry of many lands American Republics have in turn pledged a with the abundance of our productive new and strenuous effort of self-help and farms-providing lunches for children in self-reform. school, wages for economic development, To support this historic undertaking, I am relief for the victims of flood and famine, proposing-under the authority contained and a better diet for millions whose daily in the bills of the last session of the Con- bread is their chief concern. gress-a special long-term Alliance for These programs help people; and, by help- Progress fund of $3 billion. Combined with ing people, they help freedom. The views our Food for Peace, Export-Import Bank, of their governments may sometimes be and other resources, this will provide more very different from ours-but events in than $1 billion a year in new support for Africa, the Middle East, and Eastern Europe the Alliance. In addition, we have increased teach us never to write off any nation as lost twelvefold our Spanish and Portuguese- to the Communists. That is the lesson of language broadcasting in Latin America, our time. We support the independence and improved Hemispheric trade and de- of those newer or weaker states whose his- fense. And while the blight of communism tory, geography, economy or lack of power has been increasingly exposed and isolated impels them to remain outside "entangling in the Americas, liberty has scored a gain. alliances"-as we did for more than a cen- The people of the Dominican Republic, with tury. For the independence of nations is our firm encouragement and help, and those a bar to the Communists' "grand design"- of our sister Republics of this Hemisphere it is the basis of our own. are safely passing through the treacherous In the past year, for example, we have course from dictatorship through disorder urged a neutral and independent Laos- towards democracy. regained there a common policy with our major allies-and insisted that a cease-fire precede negotiations. While a workable VIII. THE NEW AND DEVELOPING NATIONS formula for supervising its independence is Our efforts to help other new or develop- still to be achieved, both the spread of war- ing nations, and to strengthen their stand which might have involved this country for freedom, have also made progress. A also-and a Communist occupation have newly unified Agency for International thus far been prevented. Development is reorienting our foreign as- A satisfactory settlement in Laos would sistance to emphasize long-term develop- also help to achieve and safeguard the peace ment loans instead of grants, more economic in Viet-Nam-where the foe is increasing I2 John F. Kennedy, 1962 Jan. II [7] ary, individual plans to his tactics of terror-where our own efforts increasing pace, we are, and increasingly needs of the nations, and have been stepped up-and where the local will be, partners in aid, trade, defense, what they must do to government has initiated new programs and diplomacy, and monetary affairs. esources. reforms to broaden the base of resistance. The emergence of the new Europe is being ed Peace Corps is win- The systematic aggression now bleeding that matched by the emergence of new ties across ping people in fourteen country is not a "war of liberation"-for the Atlantic. It is a matter of undramatic ; trained and dedicated Viet-Nam is already free. It is a war of daily cooperation in hundreds of workaday men, to give these new attempted subjugation-and it will be tasks: of currencies kept in effective relation, uilding a society, and a resisted. of development loans meshed together, of that is in our country. standardized weapons, and concerted diplo- em here, it is that we IX. THE ATLANTIC COMMUNITY matic positions. The Atlantic Community pontaneous and mount- grows, not like a volcanic mountain, by one Finally, the united strength of the Atlantic mighty explosion, but like a coral reef, from d Food for Peace Pro- Community has flourished in the last year the accumulating activity of all. hungry of many lands under severe tests. NATO has increased Thus, we in the free world are moving ce of our productive both the number and the readiness of its air, steadily toward unity and cooperation, in the unches for children in ground, and naval units-both its nuclear teeth of that old Bolshevik prophecy, and at economic development, and non-nuclear capabilities. Even greater the very time when extraordinary rumbles IS of flood and famine, efforts by all its members are still required. of discord can be heard across the Iron or millions whose daily Nevertheless our unity of purpose and Curtain. It is not free societies which bear concern. will has been, I believe, immeasurably within them the seeds of inevitable disunity. elp people; and, by help- strengthened. p freedom. The views The threat to the brave city of Berlin X. OUR BALANCE OF PAYMENTS its may sometimes be remains. In these last 6 months the Allies 1 ours-but events in have made it unmistakably clear that our On one special problem, of great concern last, and Eastern Europe presence in Berlin, our free access thereto, to our friends, and to us, I am proud to give ite off any nation as lost and the freedom of two million West Ber- the Congress an encouraging report. Our That is the lesson of liners would not be surrendered either to efforts to safeguard the dollar are progress- port the independence force or through appeasement-and to main- ing. In the II months preceding last Febru- veaker states whose his- tain those rights and obligations, we are ary I, we suffered a net loss of nearly $2 nomy or lack of power prepared to talk, when appropriate, and to billion in gold. In the II months that fol- ain outside "entangling fight, if necessary. Every member of lowed, the loss was just over half a billion id for more than a cen- NATO stands with us in a common com- dollars. And our deficit in our basic trans- :pendence of nations is mitment to preserve this symbol of free actions with the rest of the world—trade, inists' "grand design"- man's will to remain free. defense, foreign aid, and capital, excluding own. I cannot now predict the course of future volatile short-term flows-has been reduced for example, we have negotiations over Berlin. I can only say from $2 billion for 1960 to about one-third ad independent Laos— that we are sparing no honorable effort to that amount for 1961. Speculative fever mmon policy with our find a peaceful and mutually acceptable against the dollar is ending-and confidence nsisted that a cease-fire resolution of this problem. I believe such a in the dollar has been restored. IS. While a workable resolution can be found, and with it an We did not-and could not-achieve these sing its independence is improvement in our relations with the Soviet gains through import restrictions, troop both the spread of war- Union, if only the leaders in the Kremlin withdrawals, exchange controls, dollar de- involved this country will recognize the basic rights and interests valuation or choking off domestic recovery. nunist occupation have involved, and the interest of all mankind We acted not in panic but in perspective. nted. in peace. But the problem is not yet solved. Persist- tlement in Laos would But the Atlantic Community is no longer ently large deficits would endanger our eco- and safeguard the peace concerned with purely military aims. As its nomic growth and our military and defense re the foe is increasing common undertakings grow at an ever- commitments abroad. Our goal must be a I3 [7] Jan. II Public Papers of the Presidents reasonable equilibrium in our balance of increase. Our balance of payments position payments. With the cooperation of the will improve. And we will have forged Congress, business, labor, and our major across the Atlantic a trading partnership allies, that goal can be reached. with vast resources for freedom. We shall continue to attract foreign tour- If, on the other hand, we hang back in ists and investments to our shores, to seek deference to local economic pressures, we increased military purchases here by our will find ourselves cut off from our major allies, to maximize foreign aid procurement allies. Industries-and I believe this is most from American firms, to urge increased aid vital-industries will move their plants and from other fortunate nations to the less jobs and capital inside the walls of the Com- fortunate, to seek tax laws which do not mon Market, and jobs, therefore, will be favor investment in other industrialized lost here in the United States if they cannot nations or tax havens, and to urge coordina- otherwise compete for its consumers. Our tion of allied fiscal and monetary policies so farm surpluses-our balance of trade, as you as to discourage large and disturbing capital all know, to Europe, the Common Market, movements. in farm products, is nearly three or four to one in our favor, amounting to one of the TRADE best earners of dollars in our balance of pay- Above all, if we are to pay for our com- ments structure, and without entrance to this mitments abroad, we must expand our Market, without the ability to enter it, our exports. Our businessmen must be export- farm surpluses will pile up in the Middle conscious and export competitive. Our tax West, tobacco in the South, and other com- policies must spur modernization of our modities, which have gone through Western plants-our wage and price gains must be Europe for I5 years. Our balance of pay- consistent with productivity to hold the line ments position will worsen. Our consumers on prices-our export credit and promotion will lack a wider choice of goods at lower campaigns for American industries must prices. And millions of American work- continue to expand. ers-whose jobs depend on the sale or the But the greatest challenge of all is posed transportation or the distribution of exports by the growth of the European Common or imports, or whose jobs will be endangered Market. Assuming the accession of the by the movement of our capital to Europe, United Kingdom, there will arise across or whose jobs can be maintained only in an the Atlantic a trading partner behind a expanding economy-these millions of work- single external tariff similar to ours with ers in your home States and mine will see an economy which nearly equals our own. their real interests sacrificed. Will we in this country adapt our thinking Members of the Congress: The United to these new prospects and patterns-or will States did not rise to greatness by waiting we wait until events have passed us by? for others to lead. This Nation is the This is the year to decide. The Reciprocal world's foremost manufacturer, farmer, Trade Act is expiring. We need a new banker, consumer, and exporter. The Com- law-a wholly new approach--a bold new mon Market is moving ahead at an economic instrument of American trade policy. Our growth rate twice ours. The Communist decision could well affect the unity of the economic offensive is under way. The West, the course of the Cold War, and the opportunity is ours-the initiative is up to economic growth of our Nation for a us-and I believe that 1962 is the time. generation to come. To seize that initiative, I shall shortly If we move decisively, our factories and send to the Congress a new five-year Trade farms can increase their sales to their richest, Expansion Action, far-reaching in scope but fastest-growing market. Our exports will designed with great care to make certain 14 John F. Kennedy, 1962 Jan. I5 [8] ince of payments position that its benefits to our people far outweigh build in partnership a new trading commu- ad we will have forged any risks. The bill will permit the gradual nity in which all free nations may gain from C a trading partnership elimination of tariffs here in the United the productive energy of free competitive :s for freedom. States and in the Common Market on those effort. hand, we hang back in items in which we together supply 80 per- These various elements in our foreign economic pressures, we cent of the world's trade-mostly items policy lead, as I have said, to a single cut off from our major in which our own ability to compete is dem- goal-the goal of a peaceful world of free and I believe this is most onstrated by the fact that we sell abroad, and independent states. This is our guide ill move their plants and in these items, substantially more than we for the present and our vision for the fu- ide the walls of the Com- import. This step will make it possible for ture-a free community of nations, inde- jobs, therefore, will be our major industries to compete with their pendent but interdependent, uniting north ited States if they cannot counterparts in Western Europe for access and south, east and west, in one great family for its consumers. Our to European consumers. of man, outgrowing and transcending the r balance of trade, as you On other goods the bill will permit a grad- hates and fears that rend our age. e, the Common Market, ual reduction of duties up to 5° percent- We will not reach that goal today, or S nearly three or four to permitting bargaining by major categories- tomorrow. We may not reach it in our amounting to one of the and provide for appropriate and tested forms own lifetime. But the quest is the greatest a in our balance of pay- of assistance to firms and employees adjust- adventure of our century. We sometimes i without entrance to this ing to import competition. We are not chafe at the burden of our obligations, the e ability to enter it, our neglecting the safeguards provided by peril complexity of our decisions, the agony of L pile up in the Middle points, an escape clause, or the National our choices. But there is no comfort or e South, and other com- Security Amendment. Nor are we aban- security for us in evasion, no solution in e gone through Western doning our non-European friends or our abdication, no relief in irresponsibility. S. Our balance of pay- traditional "most-favored nation" principle. A year ago, in assuming the tasks of the worsen. Our consumers On the contrary, the bill will provide new Presidency, I said that few generations, in hoice of goods at lower encouragement for their sale of tropical all history, had been granted the role of ons of American work- agricultural products, so important to our being the great defender of freedom in its pend on the sale or the friends in Latin America, who have long hour of maximum danger. This is our good e distribution of exports depended upon the European market, who fortune; and I welcome it now as I did a jobs will be endangered now find themselves faced with new chal- year ago. For it is the fate of this genera- f our capital to Europe, lenges which we must join with them in tion-of you in the Congress and of me as e maintained only in an overcoming. President-to live with a struggle we did -these millions of work- Concessions, in this bargaining, must of not start, in a world we did not make. But tates and mine will see course be reciprocal, not unilateral. The the pressures of life are not always distrib- crificed. Common Market will not fulfill its own uted by choice. And while no nation has Congress: The United high promise unless its outside tariff walls ever faced such a challenge, no nation has to greatness by waiting are low. The dangers of restriction or ti- ever been so ready to seize the burden and This Nation is the midity in our own policy have counterparts the glory of freedom. manufacturer, farmer, for our friends in Europe. For together And in this high endeavor, may God nd exporter. The Com- we face a common challenge: to enlarge watch over the United States of America. ng ahead at an economic the prosperity of free men everywhere-to ours. The Communist is under way. The -the initiative is up to 8 The President's News Conference of at 1962 is the time. January 15, 1962 itiative, I shall shortly S a new five-year Trade THE PRESIDENT. [I.] I have just one an- documentation on the study of comparisons ar-reaching in scope but nouncement. I am sure you are all familiar of those in our schools and universities and : care to make certain with the story in this morning's paper of the the kind of subjects which they study which I5 I Message to the Finnish People on the Centennial of the Birth of Jean Sibelius. January I, 1965 WE IN AMERICA celebrate this year the throughout the world. For us, as for the centennial of the birth of Jean Sibelius, the people of Finland, his Finlandia has become great Finnish composer. His achievement a symbol of man's indomitable will for free- has become a part of the world's cultural dom. We are therefore proud to join in heritage. Through his art, Sibelius has doing homage to this son of Finland during made an enduring contribution to the en- Sibelius year. richment of the human spirit, and his music LYNDON B. JOHNSON continues to bring enjoyment to people NOTE: The message was released at Austin, Tex. 2 Annual Message to the Congress on the State of the Union. January 4, 1965 [ As delivered in person before a joint session at 9:04 p.m. ] Mr. Speaker, Mr. President, Members of the years ago, in 1865, following a terrible test Congress, my fellow Americans: of blood and fire, the compact of union was On this Hill which was my home, I am finally sealed. stirred by old friendships. For a second century we labored to estab- Though total agreement between the Ex- lish a unity of purpose and interest among ecutive and the Congress is impossible, total the many groups which make up the Amer- respect is important. ican community. I am proud to be among my colleagues of That struggle has often brought pain and the Congress whose legacy to their trust is violence. It is not yet over. But we have their loyalty to their Nation. achieved a unity of interest among our peo- I am not unaware of the inner emotions ple that is unmatched in the history of of the new Members of this body tonight. freedom. Twenty-eight years ago, I felt as you do And so tonight, now, in 1965, we begin a now. You will soon learn that you are new quest for union. We seek the unity of among men whose first love is their country, man with the world that he has built-with men who try each day to do as best they the knowledge that can save or destroy can what they believe is right. him-with the cities which can stimulate or We are entering the third century of the stifle him-with the wealth and the ma- pursuit of American union. chines which can enrich or menace his spirit. Two hundred years ago, in 1765, nine We seek to establish a harmony between assembled colonies first joined together to man and society which will allow each of demand freedom from arbitrary power. us to enlarge the meaning of his life and For the first century we struggled to hold all of us to elevate the quality of our together the first continental union of democ- civilization. racy in the history of man. One hundred This is the search that we begin tonight. I [2] Jan. 4 Public Papers of the Presidents STATE OF THE WORLD they keep man less than God means him to be. But the unity we seek cannot realize its We are moving toward that destiny, never full promise in isolation. For today the more rapidly than we have moved in the last state of the Union depends, in large measure, 4 years. upon the state of the world. In this period we have built a military Our concern and interest, compassion and power strong enough to meet any threat and vigilance, extend to every corner of a dwin- destroy any adversary. And that superiority dling planet. will continue to grow so long as this office Yet, it is not merely our concern but the is mine-and you sit on Capitol Hill. concern of all free men. We will not, and In this period no new nation has become we should not, assume that it is the task of Communist, and the unity of the Communist Americans alone to settle all the conflicts of empire has begun to crumble. a torn and troubled world. In this period we have resolved in friend- Let the foes of freedom take no comfort ship our disputes with our neighbors of the from this. For in concert with other na- hemisphere, and joined in an Alliance for tions, we shall help men defend their Progress toward economic growth and politi- freedom. cal democracy. Our first aim remains the safety and the In this period we have taken more steps well-being of our own country. toward peace-including the test ban We are prepared to live as good neighbors treaty-than at any time since the cold war with all, but we cannot be indifferent to acts began. designed to injure our interests, or our citi- In this period we have relentlessly pursued zens, or our establishments abroad. The our advances toward the conquest of space. community of nations requires mutual re- Most important of all, in this period, the spect. We shall extend it-and we shall United States has reemerged into the full- expect it. ness of its self-confidence and purpose. No In our relations with the world we shall longer are we called upon to get America follow the example of Andrew Jackson who moving. We are moving. No longer do said: "I intend to ask for nothing that is not we doubt our strength or resolution. We clearly right and to submit to nothing that are strong and we have proven our resolve. is wrong." And he promised, that "the No longer can anyone wonder whether honor of my country shall never be stained we are in the grip of historical decay. We by an apology from me for the statement of know that history is ours to make. And if truth or for the performance of duty." That there is great danger, there is now also the was this Nation's policy in the 1830's and excitement of great expectations. that is this Nation's policy in the 1960's. Our own freedom and growth have never AMERICA AND THE COMMUNIST NATIONS been the final goal of the American dream. We were never meant to be an oasis of Yet we still live in a troubled and perilous liberty and abundance in a worldwide desert world. There is no longer a single threat. of disappointed dreams. Our Nation was There are many. They differ in intensity created to help strike away the chains of and in danger. They require different at- ignorance and misery and tyranny wherever titudes and different answers. 2 Lyndon B. Johnson, 1965 Jan. 4 [2] is than God means him to With the Soviet Union we seek peaceful and in that cause America will never be understandings that can lessen the danger to found wanting. toward that destiny, never freedom. we have moved in the last Last fall I asked the American people to THE NON-COMMUNIST WORLD choose that course. we have built a military I will carry forward their command. But communism is not the only source of igh to meet any threat and If we are to live together in peace, we trouble and unrest. There are older and ary. And that superiority must come to know each other better. deeper sources-in the misery of nations and ;row so long as this office I am sure that the American people would in man's irrepressible ambition for liberty sit on Capitol Hill. welcome a chance to listen to the Soviet and a better life. o new nation has become leaders on our television-as I would like With the free Republics of Latin America ne unity of the Communist the Soviet people to hear our leaders on I have always felt-and my country has to crumble. theirs. always felt-very special ties of interest and e have resolved in friend- I hope the new Soviet leaders can visit affection. It will be the purpose of my ad- with our neighbors of the America so they can learn about our country ministration to strengthen these ties. To- joined in an Alliance for at firsthand. gether we share and shape the destiny of the onomic growth and politi- In Eastern Europe restless nations are new world. In the coming year I hope to slowly beginning to assert their identity. pay a visit to Latin America. And I will ve have taken more steps Your Government, assisted by the leaders in steadily enlarge our commitment to the ncluding the test ban American labor and business, is now explor- Alliance for Progress as the instrument of y time since the cold war ing ways to increase peaceful trade with these our war against poverty and injustice in this countries and with the Soviet Union. I will hemisphere. : have relentlessly pursued report our conclusions to the Congress. In the Atlantic community we continue ard the conquest of space. In Asia, communism wears a more aggres- to pursue our goal of 20 years-a Europe of all, in this period, the sive face. that is growing in strength, unity, and coop- reemerged into the full- We see that in Viet-Nam. eration with America. A great unfinished fidence and purpose. No Why are we there? task is the reunification of Germany through led upon to get America We are there, first, because a friendly na- self-determination. moving. No longer do tion has asked us for help against the This European policy is not based on any ength or resolution. We Communist aggression. Ten years ago our abstract design. It is based on the realities have proven our resolve. President pledged our help. Three Presi- of common interests and common values, anyone wonder whether dents have supported that pledge. We will common dangers and common expectations. I of historical decay. We not break it now. These realities will continue to have their is ours to make. And if Second, our own security is tied to the way-especially, I think, in our expanding ger, there is now also the peace of Asia. Twice in one generation we trade and especially in our common defense. it expectations. have had to fight against aggression in the Free Americans have shaped the policies Far East. To ignore aggression now would of the United States. And because we know IE COMMUNIST NATIONS only increase the danger of a much larger these realities, those policies have been, and war. will be, in the interest of Europe. in a troubled and perilous Our goal is peace in southeast Asia. That Free Europeans must shape the course of no longer a single threat. will come only when aggressors leave their Europe. And, for the same reasons, that They differ in intensity neighbors in peace. course has been, and will be, in our interest They require different at- What is at stake is the cause of freedom and in the interest of freedom. ent answers. 3 55-947-66-vol. 1-6 [2] Jan. 4 Public Papers of the Presidents I found this truth confirmed in my talks TOWARD THE GREAT SOCIETY with European leaders in the last year. I hope to repay these visits to some of our World affairs will continue to call upon friends in Europe this year. our energy and our courage. In Africa and Asia we are witnessing the But today we can turn increased attention turbulent unfolding of new nations and to the character of American life. continents. We are in the midst of the greatest up- We welcome them to the society of ward surge of economic well-being in the nations. history of any nation. We are committed to help those seeking Our flourishing progress has been marked to strengthen their own independence, and by price stability that is unequalled in the to work most closely with those govern- world. Our balance of payments deficit has ments dedicated to the welfare of all of their declined and the soundness of our dollar people. is unquestioned. I pledge to keep it that We seek not fidelity to an iron faith, but way and I urge business and labor to coop- a diversity of belief as varied as man him- erate to that end. self. We seek not to extend the power of We worked for two centuries to climb this America but the progress of humanity. We peak of prosperity. But we are only at the seek not to dominate others but to strengthen beginning of the road to the Great Society. the freedom of all people. Ahead now is a summit where freedom I will seek new ways to use our knowledge from the wants of the body can help fulfill to help deal with the explosion in world the needs of the spirit. population and the growing scarcity in We built this Nation to serve its people. world resources. We want to grow and build and create, Finally, we renew our commitment to the but we want progress to be the servant and continued growth and the effectiveness of not the master of man. the United Nations. The frustrations of We do not intend to live in the midst of the United Nations are a product of the abundance, isolated from neighbors and world that we live in, and not of the institu- nature, confined by blighted cities and bleak tion which gives them voice. It is far bet- suburbs, stunted by a poverty of learning ter to throw these differences open to the and an emptiness of leisure. assembly of nations than to permit them to The Great Society asks not how much, fester in silent danger. but how good; not only how to create wealth These are some of the goals of the Amer- but how to use it; not only how fast we are ican Nation in the world in which we live. going, but where we are headed. For ourselves we seek neither praise nor It proposes as the first test for a nation: blame, neither gratitude nor obedience. the quality of its people. We seek peace. This kind of society will not flower spon- We seek freedom. taneously from swelling riches and surging We seek to enrich the life of man. power. For that is the world in which we will It will not be the gift of government or flourish and that is the world that we mean the creation of presidents. for all men to ultimately have. It will require of every American, for 4 Lyndon B. Johnson, 1965 Jan. 4 [2] E GREAT SOCIETY many generations, both faith in the destina- Tonight I would like just briefly to explain tion and the fortitude to make the journey. some of my major recommendations in the 11 continue to call upon And like freedom itself, it will always be three main areas of national need. courage. challenge and not fulfillment. turn increased attention And tonight we accept that challenge. I. A GROWING ECONOMY American life. nidst of the greatest up- A NATIONAL AGENDA BASIC POLICIES nomic well-being in the on. I propose that we begin a program in edu- First, we must keep our Nation prosper- rogress has been marked cation to ensure every American child the ous. We seek full employment opportunity hat is unequalled in the fullest development of his mind and skills. for every American citizen. I will present e of payments deficit has I propose that we begin a massive attack a budget designed to move the economy for- soundness of our dollar on crippling and killing diseases. ward. More money will be left in the hands pledge to keep it that I propose that we launch a national effort of the consumer by a substantial cut in excise siness and labor to coop- to make the American city a better and a taxes. We will continue along the path more stimulating place to live. toward a balanced budget in a balanced NO centuries to climb this VI propose that we increase the beauty of economy. But we are only at the America and end the poisoning of our rivers I confidently predict-what every eco- bad to the Great Society. and the air that we breathe. nomic sign tells us tonight-the continued summit where freedom I propose that we carry out a new program flourishing of the American economy. the body can help fulfill to develop regions of our country that are But we must remember that fear of a rit. now suffering from distress and depression. recession can contribute to the fact of a reces- ation to serve its people. I propose that we make new efforts to sion. The knowledge that our Government W and build and create, control and prevent crime and delinquency. will, and can, move swiftly will strengthen ess to be the servant and I propose that we eliminate every remain- the confidence of investors and business. nan. ing obstacle to the right and the opportunity Congress can reinforce this confidence by d to live in the midst of to vote. insuring that its procedures permit rapid d from neighbors and I propose that we honor and support the action on temporary income tax cuts. And blighted cities and bleak achievements of thought and the creations of special funds for job-creating public pro- y a poverty of learning art. grams should be made available for imme- of leisure. I propose that we make an all-out cam- diate use if recession threatens. ety asks not how much, paign against waste and inefficiency. Our continued prosperity demands con- only how to create wealth tinued price stability. Business, labor, and not only how fast we are THE TASK the consumer all have a high stake in keep- re are headed. ing wages and prices within the framework ie first test for a nation: Our basic task is threefold: of the guideposts that have already served the eople. First, to keep our economy growing; Nation so well. iety will not flower spon- -to open for all Americans the opportu- Finding new markets abroad for our goods elling riches and surging nity that is now enjoyed by most Americans; depends on the initiative of American busi- -and to improve the quality of life for all. ness. But we stand ready-with credit and e gift of government or In the next 6 weeks I will submit special other help-to assist the flow of trade which sidents. messages with detailed proposals for national will benefit the entire Nation. of every American, for action in each of these areas. 5 [2] Jan. 4 Public Papers of the Presidents ON THE FARMS I will ask for funds to study high-speed rail transportation between urban centers. Our economy owes much to the efficiency We will begin. with test projects between of our farmers. We must continue to assure Washington and Boston. On high-speed them the opportunity to earn a fair reward. trains, passengers could travel this distance I have instructed the Secretary of Agriculture in less than 4 hours. to lead a major effort to find new approaches to reduce the heavy cost of our farm pro- II. OPPORTUNITY FOR ALL grams and to direct more of our effort to the small farmer who needs the help the most Second, we must open opportunity to all our people. INCREASED PROSPERITY Most Americans enjoy a good life. But far too many are still trapped in poverty and We can help insure continued prosperity idleness and fear. through: Let a just nation throw open to them the -a regional recovery program to assist city of promise: the development of stricken areas left be- -to the elderly, by providing hospital care hind by our national progress; under social security and by raising benefit -further efforts to provide our workers payments to those struggling to maintain with the skills demanded by modern tech- the dignity of their later years; nology; for the laboring-man is an indis- -to the poor and the unfortunate, pensable force in the American system; through doubling- the war against poverty -the extension of the minimum wage to this year; more than 2 million unprotected workers; -to Negro Americans, through enforce- -the improvement and the moderniza- ment of the civil rights law and elimination tion of the unemployment compensation of barriers to the right to vote; system. -to those in other lands that are seeking And as pledged in our 1960 and 1964 the promise of America, through an immi- Democratic platforms, I will propose to Con- gration law based on the work a man can gress changes in the Taft-Hartley Act in- do and not where he was born or how he cluding section 14(b). I will do so hoping spells his name. to reduce the conflicts that for several years have divided Americans in various States of III. To ENRICH THE LIFE OF ALL our Union. In a country that spans a continent mod- Our third goal is to improve the quality ern transportation is vital to continued of American life. growth. THROUGH EDUCATION TRANSPORTATION FOR GROWTH We begin with learning. I will recommend heavier reliance on com- Every child must have the best education petition in transportation and a new policy that this Nation can provide. for our merchant marine. Thomas Jefferson said that no nation can 6 Lyndon B. Johnson, 1965 Jan. 4 [2] ds to study high-speed be both ignorant and free. Today no na- children from poor families, including serv- between urban centers. tion can be both ignorant and great. ices for the mentally retarded. 1 test projects between In addition to our existing programs, I oston. On high-speed will recommend a new program for schools THROUGH IMPROVING THE WORLD WE LIVE IN uld travel this distance and students with a first year authorization The City of $1,500 million. It will help at every stage along the road An educated and healthy people require INITY FOR ALL to learning. surroundings in harmony with their hopes. For the preschool years we will help needy In our urban areas the central problem open opportunity to all children become aware of the excitement of today is to protect and restore man's satis- learning. faction in belonging to a community where enjoy a good life. But For the primary and secondary school he can find security and significance. trapped in poverty and years we will aid public schools serving low- The first step is to break old patterns-to income families and assist students in both begin to think and work and plan for the throw open to them the public and private schools. development of the entire metropolitan For the college years we will provide areas. We will take this step with new pro- y providing hospital care scholarships to high school students of the grams of help for the basic community fa- / and by raising benefit greatest promise and the greatest need and cilities and for neighborhood centers of struggling to maintain we will guarantee low-interest loans to stu- health and recreation. later years; dents continuing their college studies. New and existing programs will be open and the unfortunate, New laboratories and centers will help our to those cities which work together to de- he war against poverty schools-help them lift their standards of ex- velop unified long-range policies for metro- cellence and explore new methods of teach- politan areas. ricans, through enforce- ing. These centers will provide special We must also make some very important ;hts law and elimination training for those who need and those who changes in our housing programs if we are ght to vote; deserve special treatment. to pursue these same basic goals. er lands that are seeking So a Department of Housing and Urban erica, through an immi- THROUGH BETTER HEALTH Development will be needed to spearhead on the work a man can this effort in our cities. he was born or how he Greatness requires not only an educated Every citizen has the right to feel secure in people but a healthy people. his home and on the streets of his community. Our goal is to match the achievements of To help control crime, we will recommend I THE LIFE OF ALL our medicine to the afflictions of our people. programs: We already carry on a large program in -to train local law enforcement officers; S to improve the quality this country for research and health. -to put the best techniques of modern In addition, regional medical centers can science at their disposal; provide the most advanced diagnosis and -to discover the causes of crime and better H EDUCATION treatment for heart disease and cancer and ways to prevent it. stroke and other major diseases. I will soon assemble a panel of outstand- earning. New support for medical and dental edu- ing experts of this Nation to search out t have the best education cation will provide the trained people to answers to the national problem of crime and in provide. apply our knowledge. delinquency, and I welcome the recommen- n said that no nation can Community centers can help the mentally dations and the constructive efforts of the ill and improve health care for school-age Congress. 7 [2] Jan. 4 Public Papers of the Presidents The Beauty of America Foundation on the Arts. To develop knowledge which will enrich For over three centuries the beauty of our lives and ensure our progress, I will at America has sustained our spirit and has recommend programs to encourage basic g enlarged our vision. We must act now to science, particularly in the universities-and y protect this heritage. In a fruitful new part- to bring closer the day when the oceans will C nership with the States and the cities the next supply our growing need for fresh water. decade should be a conservation milestone. We must make a massive effort to save the IV. THE GOVERNMENT di countryside and to establish-as a green legacy for tomorrow-more large and small For government to serve these goals it parks, more seashores and open spaces than must be modern in structure, efficient in have been created during any other period action, and ready for any emergency. in our national history. I am busy, currently, reviewing the struc- A new and substantial effort must be made ture of the entire executive branch of this y to landscape highways to provide places of Government. I hope to reshape it and to relaxation and recreation wherever our roads reorganize it to meet more effectively the run. tasks of the 20th century. Within our cities imaginative programs Wherever waste is found, I will eliminate are needed to landscape streets and to trans- it. form open areas into places of beauty and Last year we saved almost $3,500 million recreation. by eliminating waste in the National Gov- We will seek legal power to prevent pollu- ernment. tion of our air and water before it happens. And I intend to do better this year. We will step up our effort to control harmful And very soon I will report to you on our wastes, giving first priority to the cleanup progress and on new economies that your of our most contaminated rivers. We will Government plans to make. increase research to learn much more about Even the best of government is subject to a the control of pollution. the worst of hazards. We hope to make the Potomac a model I will propose laws to insure the necessary of beauty here in the Capital, and preserve continuity of leadership should the President unspoiled stretches of some of our waterways become disabled or die. with a Wild Rivers bill. In addition, I will propose reforms in the More ideas for a beautiful America will electoral college-leaving undisturbed the emerge from a White House Conference on vote by States-but making sure that no Natural Beauty which I will soon call. elector can substitute his will for that of the people. Art and Science Last year, in a sad moment, I came here 1 and I spoke to you after 33 years of public We must also recognize and encourage service, practically all of them here on this those who can be pathfinders for the Nation's Hill. imagination and understanding. This year I speak after I year as President To help promote and honor creative of the United States. achievements, I will propose a National Many of you in this Chamber are among 8 Lyndon B. Johnson, 1965 Jan. 6 [3] Arts. my oldest friends. We have shared many Well, they were restless, of course, and vledge which will enrich happy moments and many hours of work, they had to be moving on. But there was are our progress, I will and we have watched many Presidents to- more than that. There was a dream-a ams to encourage basic gether. Yet, only in the White House can dream of a place where a free man could in the universities-and you finally know the full weight of this build for himself, and raise his children to day when the oceans will Office. a better life-a dream of a continent to be ; need for fresh water. The greatest burden is not running the conquered, a world to be won, a nation to huge operations of government-or meeting be made. GOVERNMENT daily troubles, large and small-or even Remembering this, I knew the answer. working with the Congress. A President does not shape a new and to serve these goals it A President's hardest task is not to do personal vision of America. in structure, efficient in what is right, but to know what is right. He collects it from the scattered hopes of or any emergency. Yet the Presidency brings no special gift the American past. ntly, reviewing the struc- of prophecy or foresight. You take an oath, It existed when the first settlers saw the executive branch of this you step into an office, and you must then coast of a new world, and when the first pe to reshape it and to help guide a great democracy. pioneers moved westward. eet more effectively the The answer was waiting for me in the It has guided us every step of the way. entury. land where I was born. It sustains every President. But it is also is found, I will eliminate It was once barren land. The angular your inheritance and it belongs equally to hills were covered with scrub cedar and a all the people that we all serve. ed almost $3,500 million few large live oaks. Little would grow in It must be interpreted anew by each gen- ite in the National Gov- that harsh caliche soil of my country. And eration for its own needs; as I have tried, in each spring the Pedernales River would part, to do tonight. do better this year. flood our valley. It shall lead us as we enter the third cen- will report to you on our But men came and they worked and they tury of the search for "a more perfect ew economies that your endured and they built. union." to make. And tonight that country is abundant; This, then, is the state of the Union: Free government is subject to abundant with fruit and cattle and goats and and restless, growing and full of hope. ds. sheep, and there are pleasant homes and So it was in the beginning. vs to insure the necessary lakes and the floods are gone. So it shall always be, while God is willing, ship should the President Why did men come to that once forbid- and we are strong enough to keep the faith. die. ding land? Il propose reforms in the leaving undisturbed the it making sure that no te his will for that of the 3 Letter to Alice Roosevelt Longworth on the 46th Anniversary of the Death of Theodore Roosevelt. January 6, 1965 ad moment, I came here Dear Mrs. Longworth: President. He converted the Republican 1 after 33 years of public On this occasion of the 46th anniversary Party into a vehicle that was at once ven- all of them here on this of the death of your father, President Theo- turesome and hardheaded. He developed dore Roosevelt, I have been thinking over the doctrine of the Presidency-to use his : after I year as President the enormous significance of his contribu- phrase-as "the steward" of the interests of S. tions to our nation. all the American people, and he pioneered this Chamber are among President Roosevelt was the first modern in making the economic and social welfare 9 [8] Jan. 21 Public Papers of the Presidents on January 20, 1970, at the age of 79. He Ronald L. Ziegler during his regular news had served as Secretary of the Treasury in the briefing at the White House on January 21, Eisenhower administration from 1953 to 1957. 1970. The statement was read by Press Secretary 9 Annual Message to the Congress on the State of the Union. January 22, 1970 Mr. Speaker, Mr. President, my colleagues emphasis on developing better ways of in the Congress, our distinguished guests managing what we have and of complet- and my fellow Americans: ing what man's genius has begun but left To address a joint session of the Con- unfinished. gress in this great Chamber in which I was Our land, this land that is ours together, once privileged to serve is an honor for is a great and a good land. It is also an which I am deeply grateful. unfinished land, and the challenge of per- The State of the Union Address is tradi- fecting it is the summons of the seventies. tionally an occasion for a lengthy and It is in that spirit that I address myself detailed account by the President of what to those great issues facing our Nation he has accomplished in the past, what he which are above partisanship. wants the Congress to do in the future, When we speak of America's priorities and, in an election year, to lay the basis the first priority must always be peace for for the political issues which might be de- America and the world. cisive in the fall. The major immediate goal of our for- Occasionally there comes a time when eign policy is to bring an end to the war profound and far-reaching events com- in Vietnam in a way that our generation mand a break with tradition. will be remembered-not so much as the This is such a time. generation that suffered in war, but more I say this not only because 1970 marks for the fact that we had the courage and the beginning of a new decade in which character to win the kind of a just peace America will celebrate its 200th birthday. that the next generation was able to keep. I say it because new knowledge and hard We are making progress toward that experience argue persuasively that both goal. our programs and our institutions in The prospects for peace are far greater America need to be reformed. today than they were a year ago. The moment has arrived to harness the A major part of the credit for this vast energies and abundance of this land development goes to the Members of this to the creation of a new American ex- Congress who, despite their differences on perience, an experience richer and deeper the conduct of the war, have overwhelm- and more truly a reflection of the goodness ingly indicated their support of a just and grace of the human spirit. peace. By this action, you have completely The seventies will be a time of new be- demolished the enemy's hopes that they ginnings, 2 time of exploring both on the can gain in Washington the victory our earth and in the heavens, a time of dis- fighting men have denied them in covery. But the time has also come for Vietnam. 8 nts Richard Nixon, 1970 Jan. 22 [9] Ziegler during his regular news No goal could be greater than to make ment of other nations can be exclusively the White House on January 21, the next generation the first in this cen- or primarily an American undertaking. tury in which America was at peace with The nations of each part of the world every nation in the world. should assume the primary responsibility I shall discuss in detail the new con- for their own well-being; and they them- e cepts and programs designed to achieve selves should determine the terms of that this goal in a separate report on foreign well-being. policy, which I shall submit to the Con- We shall be faithful to our treaty com- n developing better ways of gress at a later date. mitments, but we shall reduce our involve- what we have and of complet- Today, let me describe the directions of ment and our presence in other nations' our new policies. affairs. an's genius has begun but left We have based our policies on an To insist that other nations play a role this land that is ours together, evaluation of the world as it is, not as it is not a retreat from responsibility; it is a nd a good land. It is also an was 25 years ago at the conclusion of sharing of responsibility. and, and the challenge of per- World War II. Many of the policies which The result of this new policy has been the summons of the seventies. were necessary and right then are obsolete not to weaken our alliances, but to give at spirit that I address myself today. them new life, new strength, a new sense eat issues facing our Nation Then, because of America's overwhelm- of common purpose. love partisanship. ing military and economic strength, be- Relations with our European allies speak of America's priorities cause of the weakness of other major are once again strong and healthy, free world powers and the inability of based on mutual consultation and mutual rity must always be peace for 1 the world. scores of newly independent nations to responsibility. or immediate goal of our for- defend, or even govern, themselves, Amer- We have initiated a new approach to is to bring an end to the war ica had to assume the major burden for Latin America in which we deal with in a way that our generation the defense of freedom in the world. those nations as partners rather than mbered-not SO much as the In two wars, first in Korea and now in patrons. Vietnam, we furnished most of the money, The new partnership concept has been hat suffered in war, but more that we had the courage and most of the arms, most of the men to help welcomed in Asia. We have developed an other nations defend their freedom. historic new basis for Japanese-American win the kind of a just peace generation was able to keep. Today the great industrial nations of friendship and cooperation, which is the Europe, as well as Japan, have regained linchpin for peace in the Pacific. haking progress toward that their economic strength; and the nations If we are to have peace in the last third of Latin America-and many of the na- of the century, a major factor will be the ects for peace are far greater hey were a year ago. tions who acquired their freedom from development of a new relationship be- colonialism after World War II in Asia tween the United States and the Soviet part of the credit for this goes to the Members of this and Africa-have a new sense of pride Union. o, despite their differences on and dignity and a determination to as- I would not underestimate our differ- of the war, have overwhelm- sume the responsibility for their own ences, but we are moving with precision defense. and purpose from an era of confronta- ted their support of a just That is the basis of the doctrine I an- tion to an era of negotiation. 5 action, you have completely nounced at Guam.¹ Our negotiations on strategic arms lim- he enemy's hopes that they Neither the defense nor the develop- itations and in other areas will have far Washington the victory our greater chance for success if both sides en- n have denied them in 1 See 1969 volume, Item 279. ter them motivated by mutual self-inter- 9 [9] Jan. 22 Public Papers of the Presidents est rather than naive sentimentality. Ours has become-as it continues to It is with this same spirit that we have be, and should remain-a society of large resumed discussions with Communist expectations. Government helped to gen- China in our talks at Warsaw. erate these expectations. It undertook to Our concern in our relations with both meet them. Yet, increasingly, it proved these nations is to avoid a catastrophic col- unable to do so. lision and to build a solid basis for peace- As a people, we had too many visions- ful settlement of our differences. and too little vision. I would be the last to suggest that the Now, as we enter the seventies, we road to peace is not difficult and danger- should enter also a great age of reform of ous, but I believe our new policies have the institutions of American government. contributed to the prospect that America Our purpose in this period should not may have the best chance since World be simply better management of the pro- War II to enjoy a generation of uninter- grams of the past. The time has come for rupted peace. And that chance will be a new quest-a quest not for a greater enormously increased if we continue to quantity of what we have, but for a new have a relationship between Congress and quality of life in America. the Executive in which, despite differences A major part of the substance for an un- in detail, where the security of America precedented advance in this Nation's ap- and the peace of mankind are concerned, proach to its problems and opportunities we act not as Republicans, not as Demo- is contained in more than two score legis- crats, but as Americans. lative proposals which I sent to the Con- As we move into the decade of the gress last year and which still await seventies, we have the greatest opportu- enactment. nity for progress at home of any people I will offer at least a dozen more major in world history. programs in the course of this session. Our gross national product will increase At this point I do not intend to go by $500 billion in the next IO years. This through a detailed listing of what I have increase alone is greater than the entire proposed or will propose, but I would like growth of the American economy from to mention three areas in which urgent 1790 to 1950. priorities demand that we move and move The critical question is not whether we now: will grow, but how we will use that First, we cannot delay longer in accom- growth. plishing a total reform of our welfare The decade of the sixties was also a pe- system. When a system penalizes work, riod of great growth economically. But in breaks up homes, robs recipients of dig- that same 10-year period we witnessed nity, there is no alternative to abolishing the greatest growth of crime, the greatest that system and adopting in its place the increase in inflation, the greatest social un- program of income support, job training, rest in America in 100 years. Never has a and work incentives which I recom- nation seemed to have had more and mended to the Congress last year. enjoyed it less. Second, the time has come to assess and At heart, the issue is the effectiveness reform all of our institutions of govern- of government. ment at the Federal, State, and local level. IO Richard Nixon, 1970 Jan. 22 [9] become-as it continues to It is time for a New Federalism, in which, In that same decade the American peo- 1 remain-a society of large Government helped to gen- after 190 years of power flowing from the ple paid the bill for that deficit in price people and local and State governments increases which raised the cost of living pectations. It undertook to to Washington, D.C., it will begin to flow for the average family of four by $200 et, increasingly, it proved from Washington back to the States and per month in America. we had too many visions— to the people of the United States. Now millions of Americans are forced ision. Third, we must adopt reforms which to go into debt today because the Federal will expand the range of opportunities for Government decided to go into debt yes- e enter the seventies, we all Americans: We can fulfill the Ameri- terday. We must balance our Federal so a great age of reform of can dream only when each person has a budget so that American families will have of American government. fair chance to fulfill his own dreams. This a better chance to balance their family in this period should not means equal voting rights, equal employ- budgets. r management of the pro- 1st. The time has come for ment opportunity, and new opportunities Only with the cooperation of the Con- for expanded ownership. Because in order gress can we meet this highest priority a quest not for a greater to be secure in their human rights, people objective of responsible government. at we have, but for a new America. need access to property rights. We are on the right track. I could give similar examples of the We had a balanced budget in 1969. of the substance for an un- need for reform in our programs for This administration cut more than $7 vance in this Nation's ap- health, education, housing, transporta- billion out of spending plans in order to oblems and opportunities tion, as well as other critical areas which produce a surplus in 1970, and in spite of nore than two score legis- directly affect the well-being of millions the fact that Congress reduced revenues which I sent to the Con- of Americans. by $3 billion, I shall recommend a bal- and which still await The people of the United States should anced budget for 1971 wait no longer for these reforms that But I can assure you that not only to least a dozen more major would so deeply enhance the quality of present, but to stay within, a balanced e course of this session. their life. budget requires some very hard decisions. I do not intend to go When I speak of actions which would It means rejecting spending programs ed listing of what I have be beneficial to the American people, I which would benefit some of the people propose, but I would like can think of none more important than when their net effect would result in price e areas in which urgent for the Congress to join this administra- increases for all the people. 1 that we move and move tion in the battle to stop the rise in the It is time to quit putting good money cost of living. into bad programs. Otherwise, we will st delay longer in accom- Now, I realize it is tempting to blame end up with bad money and bad reform of our welfare someone else for inflation. programs. system penalizes work, Some blame business for raising prices. I recognize the political popularity of , robs recipients of dig- Some blame unions for asking for more spending programs, and particularly in an alternative to abolishing wages. election year. But unless we stop the rise adopting in its place the But a review of the stark fiscal facts of in prices, the cost of living for millions he support, job training, the 1960's clearly demonstrates where the of American families will become unbear- tives which I recom- primary blame for rising prices must be able and government's ability to plan pro- ngress last year. placed. grams for progress for the future will be- e has come to assess and In the decade of the sixties the Federal come impossible. institutions of govern- Government spent $57 billion more than In referring to budget cuts, there is one al, State, and local level. it took in in taxes. area where I have ordered an increase II [9] Jan. 22 Public Papers of the Presidents rather than a cut-and that is the re- local law enforcement will double that quests of those agencies with the respon- budgeted for 1970. sibilities for law enforcement. The primary responsibility for crimes We have heard a great deal of over- that affect individuals is with local and blown rhetoric during the sixties in which State rather than with Federal Govern- the word "war" has perhaps too often ment. But in the field of organized crime, been used-the war on poverty, the war narcotics, pornography, the Federal Gov- on misery, the war on disease, the war on ernment has a special responsibility it hunger. But if there is one area where the should fulfill. And we should make Wash- word "war" is appropriate it is in the ington, D.C., where we have the primary fight against crime. We must declare and responsibility, an example to the Nation win the war against the criminal elements and the world of respect for law rather which increasingly threaten our cities, than lawlessness. our homes, and our lives. I now turn to a subject which, next to We have a tragic example of this prob- our desire for peace, may well become the lem in the Nation's Capital, for whose major concern of the American people in safety the Congress and the Executive the decade of the seventies. have the primary responsibility. I doubt In the next 10 years we shall increase if many Members of this Congress who our wealth by 50 percent. The profound live more than a few blocks from here question is: Does this mean we will be 50 would dare leave their cars in the Capitol percent richer in a real sense, 50 percent garage and walk home alone tonight. better off, 5° percent happier? Last year this administration sent to the Or does it mean that in the year i980 Congress 13 separate pieces of legislation the President standing in this place will dealing with organized crime, pornog- look back on a decade in which 70 per- raphy, street crime, narcotics, crime in cent of our people lived in metropolitan the District of Columbia. areas choked by traffic, suffocated by None of these bills has reached my desk smog, poisoned by water, deafened by for signature. noise, and terrorized by crime? I am confident that the Congress will These are not the great questions that act now to adopt the legislation I placed concern world leaders at summit confer- before you last year. We in the Executive ences. But people do not live at the sum- have done everything we can under exist- mit. They live in the foothills of everyday ing law, but new and stronger weapons experience, and it is time for all of us are needed in that fight. to concern ourselves with the way real While it is true that State and local law people live in real life. enforcement agencies are the cutting edge The great question of the seventies is, in the effort to eliminate street crime, shall we surrender to our surroundings, or burglaries, murder, my proposals to you shall we make our peace with nature and have embodied my belief that the Fed- begin to make reparations for the damage eral Government should play a greater we have done to our air, to our land, and role in working in partnership with these to our water? agencies. Restoring nature to its natural state is a That is why 1971 Federal spending for cause beyond party and beyond factions. I2 Richard Nixon, 1970 Jan. 22 [9] cement will double that It has become a common cause of all the open space and parklands now, before 'O. people of this country. It is a cause of they are lost to us. responsibility for crimes particular concern to young Americans, The automobile is our worst polluter viduals is with local and because they more than we will reap the of the air. Adequate control requires fur- n with Federal Govern- grim consequences of our failure to act on ther advances in engine design and fuel field of organized crime, programs which are needed now if we are composition. We shall intensify our re- graphy, the Federal Gov- to prevent disaster later. search, set increasingly strict standards, special responsibility it Clean air, clean water, open spaces— and strengthen enforcement procedures— d we should make Wash- these should once again be the birthright and we shall do it now. ere we have the primary of every American. If we act now, they We can no longer afford to consider air example to the Nation can be. and water common property, free to be f respect for law rather We still think of air as free. But clean abused by anyone without regard to the air is not free, and neither is clean water. consequences. Instead, we should begin a subject which, next to The price tag on pollution control is high. now to treat them as scarce resources, ice, may well become the Through our years of past carelessness we which we are no more free to contaminate the American people in incurred a debt to nature, and now that than we are free to throw garbage into our seventies. debt is being called. neighbor's yard. years we shall increase The program I shall propose to Con- This requires comprehensive new regu- percent. The profound gress will be the most comprehensive and lations. It also requires that, to the extent this mean we will be 50 costly program in this field in America's possible, the price of goods should be made a real sense, 50 percent history. to include the costs of producing and dis- cent happier? It is not a program for just one year. A posing of them without damage to the n that in the year 1980 year's plan in this field is no plan at all. environment. ading in this place will This is a time to look ahead not a year, Now, I realize that the argument is ecade in which 70 per- but 5 years or IO years-whatever time is often made that there is a fundamental e lived in metropolitan required to do the job. contradiction between economic growth traffic, suffocated by I shall propose to this Congress a $10 and the quality of life, so that to have one by water, deafened by billion nationwide clean waters program we must forsake the other. ed by crime? to put modern municipal waste treatment The answer is not to abandon growth, the great questions that plants in every place in America where but to redirect it. For example, we should ders at summit confer- they are needed to make our waters clean turn toward ending congestion and elimi- do not live at the sum- again, and do it now. We have the indus- nating smog the same reservoir of inven- he foothills of everyday trial capacity, if we begin now, to build tive genius that created them in the first t is time for all of us them all within 5 years. This program will place. ves with the way real get them built within 5 years. Continued vigorous economic growth life. As our cities and suburbs relentlessly provides us with the means to enrich life ion of the seventies is, expand, those priceless open spaces itself and to enhance our planet as a place to our surroundings, or needed for recreation areas accessible to hospitable to man. peace with nature and their people are swallowed up-often for- Each individual must enlist in this fight trations for the damage ever. Unless we preserve these spaces while if it is to be won. ur air, to our land, and they are still available, we will have none It has been said that no matter how to preserve. Therefore, I shall propose many national parks and historical monu- to its natural state is a new financing methods for purchasing ments we buy and develop, the truly sig- y and beyond factions. 13 [9] Jan. 22 Public Papers of the Presidents nificant environment for each of us is that become insoluble, the Nation develop a in which we spend 80 percent of our national growth policy. time-in our homes, in our places of work, In the future, government decisions as the streets over which we travel. to where to build highways, locate air- Street litter, rundown parking strips and ports, acquire lan'd, or sell land should be yards, dilapidated fences, broken win- made with a clear objective of aiding a dows, smoking automobiles, dingy work- balanced growth for America: ing places, all should be the object of our In particular, the Federal Government fresh view. must be in a position to assist in the build- We have been too tolerant of our sur- ing of new cities and the rebuilding of old roundings and too willing to leave it to ones. others to clean up our environment. It is At the same time, we will carry our con- time for those who make massive demands cern with the quality of life in America on society to make some minimal demands to the farm as well as the suburb, to the on themselves. Each of us must resolve village as well as to the city. What rural that each day he will leave his home, his America needs most is a new kind of assist- property, the public places of the city or ance. It needs to be dealt with, not as a town a little cleaner, a little better, a little separate nation, but as part of an overall more pleasant for himself and those growth policy for America. We must around him. create a new rural environment which will With the help of people we can do any- not only stem the migration to urban cen- thing, and without their help, we can do ters, but reverse it. If we seize our growth nothing. In this spirit, together, we can as a challenge, we can make the 1970's an reclaim our land for ours and generations historic period when by conscious choice to come. we transformed our land into what we Between now and the year 2000, over want it to become. 100 million children will be born in the America, which has pioneered in the United States. Where they grow up-and new abundance, and in the new tech- how-will, more than any one thing, nology, is called upon today to pioneer in measure the quality of American life in meeting the concerns which have followed these years ahead. in their wake-in turning the wonders of This should be a warning to us. science to the service of man. For the past 30 years our population In the majesty of this great Chamber has also been growing and shifting. The we hear the echoes of America's history, result is exemplified in the vast areas of of debates that rocked the Union and rural America emptying out of people those that repaired it, of the summons to and of promise-a third of our counties war and the search for peace, of the unit- lost population in the sixties. ing of the people, the building of a nation. The violent and decayed central cities Those echoes of history remind us of of our great metropolitan complexes are our roots and our strengths. the most conspicuous area of failure in They remind us also of that special American life today. genius of American democracy, which at I propose that before these problems one critical turning point after another 14 nts Richard Nixon, 1970 Jan. 22 [9] luble, the Nation develop a has led us to spot the new road to the nation of 3 million people, weak militarily, wth policy. future and given us the wisdom and the poor economically. But America meant ure, government decisions as courage to take it. something to the world then which could build highways, locate air- As I look down that new road which I not be measured in dollars, something far e land, or sell land should be have tried to map out today, I see a new more important than military might. 1 clear objective of aiding a America as we celebrate our 200th anni- Listen to President Thomas Jefferson with for America. versary 6 years from now. in 1802: We act not "for ourselves alone, lar, the Federal Government I see an America in which we have but for the whole human race." position to assist in the build- abolished hunger, provided the means for We had a spiritual quality then which ties and the rebuilding of old every family in the Nation to obtain a caught the imagination of millions of peo- minimum income, made enormous prog- ple in the world. .e time, we will carry our con- ress in providing better housing, faster Today, when we are the richest and e quality of life in America transportation, improved health, and strongest nation in the world, let it not as well as the suburb, to the superior education. be recorded that we lack the moral and Il as to the city. What rural I see an America in which we have spiritual idealism which made us the hope is most is a new kind of assist- checked inflation, and waged a winning of the world at the time of our birth. Is to be dealt with, not as a war against crime. The demands of us in 1976 are even on, but as part of an overall I see an America in which we have greater than in 1776. y for America. We must made great strides in stopping the pol- It is no longer enough to live and let rural environment which will lution of our air, cleaning up our water, live. Now we must live and help live. the migration to urban cen- opening up our parks, continuing to ex- We need a fresh climate in America, rse it. If we seize our growth plore in space. one in which a person can breathe freely we can make the 1970's an Most important, I see an America at and breathe in freedom. d when by conscious choice peace with all the nations of the world. Our recognition of the truth that wealth ed our land into what we This is not an impossible dream. These and happiness are not the same thing goals are all within our reach. requires us to measure success or failure ome. rhich has pioneered in the In times past, our forefathers had the by new criteria. ce, and in the new tech- vision but not the means to achieve such Even more than the programs I have ed upon today to pioneer in goals. described today, what this Nation needs incerns which have followed Let it not be recorded that we were is an example from its elected leaders in -in turning the wonders of the first American generation that had providing the spiritual and moral lead- ervice of man. the means but not the vision to make this ership which no programs for material sty of this great Chamber dream come true. progress can satisfy. choes of America's history, But let us, above all, recognize a funda- Above all, let us inspire young Amer- at rocked the Union and mental truth. We can be the best clothed, icans with a sense of excitement, a sense aired it, of the summons to best fed, best housed people in the world, of destiny, a sense of involvement, in meet- arch for peace, of the unit- enjoying clean air, clean water, beautiful ing the challenges we face in this great le, the building of a nation. parks, but we could still be the unhappiest period of our history. Only then are they $ of history remind us of people in the world without an indefinable going to have any sense of satisfaction in our strengths. spirit-the lift of a driving dream which their lives. d us also of that special has made America, from its beginning, the The greatest privilege an individual can hope of the world. have is to serve in a cause bigger than rican democracy, which at ming point after another Two hundred years ago this was a new himself. We have such a cause. 15 [9] Jan. 22 Public Papers of the Presidents How we seize the opportunities I have tunity, for progress and peace for all described today will determine not only peoples. our future, but the future of peace and NOTE: The President delivered his address at freedom in this world in the last third of 12:30 p.m. in the House Chamber at the the century. Capitol before a joint session of the Congress. May God give us the wisdom, the He was introduced by Speaker of the House strength and, above all, the idealism to be of Representatives John W. McCormack of Massachusetts. worthy of that challenge, so that Amer- On the same day an advance text of the ica can fulfill its destiny of being the President's address was released. by the White world's best hope for liberty, for oppor- House Press Office. IO Remarks on Presenting the Presidential Medal of Freedom to Eugene Ormandy. January 24, 1970 Mr. Louchheim, Mr. Ormandy, members tainly the highest experience that could of the orchestra, all of the distinguished ever have come is to have "Hail to the performing artists tonight, and all of those Chief" played by the Philadelphia Sym- in this great American Academy of Mu- phony Orchestra under Eugene Ormandy. sic-that was its original name you know, The highest honor that can be paid to a and after tonight it is the American Acad- private citizen by the Government of the emy of Music: United States is the Medal of Freedom. Those in this room are indeed fortunate The first award of this Medal in the dec- to be here on this special day honoring ade of the seventies is to be made tonight. Eugene Ormandy. Because only a few Usually the awards are made in the could be here, you are the special few. White House. I found, however, when I I want you to know that for me it was suggested that Mr. Ormandy might come a very special honor to be here, because I to the White House for the award, he am in a much larger audience, the audi- said: "Only if I can bring the 105 people ence that does not live in Philadelphia, the in my orchestra-all 105." audience as a matter of fact-and I was Now, we would have been delighted to saying this to Mr. Ormandy before-I am have the 105 in the orchestra there but we one of those millions of people in Amer- could not have had any guests. And so, ica and the world who never before has since the orchestra could not come to heard the Philadelphia Symphony with Washington, I thought that the President Eugene Ormandy conducting in person. ought to come to Philadelphia and come I know him and the orchestra through the to the orchestra. records. I now will read the citation to you. And I want to say, Mr. Ormandy, that when I was growing up as a child in Cal- THE PRESIDENT OF THE UNITED STATES OF ifornia, and my mother was making me AMERICA AWARDS THIS PRESIDENTIAL MEDAL practice the piano and the violin, I never OF FREEDOM TO EUGENE ORMANDY dreamed that someday they might be play- From early childhood he has possessed ing "Hail to the Chief" to me, but cer- superb musical gifts. For thirty-four years he 16 5 [27] Public Papers of the Presidents January 14 I will forward to the Congress later this week draft legislation for such an extension. I believe the right to vote is the foundation of freedom and equality. It must be protected. During his lifetime, Dr. King received the Nobel Prize and numerous other awards. But shortly before his death 7 years ago, he said that he preferred to be remembered not for these honors, but for his service to his fellow man. Dr. King is remembered as he wished-and his memory continues to inspire hope for America. We must not let his work die-that will be the highest tribute of all. NOTE: The President spoke at 1:05 p.m. in the The White House announced that the President Cabinet Room at the White House. His remarks also had sent a telegram to Coretta Scott King ex- were recorded for later broadcast in commemora- pressing his high regard for the memory of her late tion of Dr. King's birth on January 15, 1929. husband. 28 Address Before a Joint Session of the Congress Reporting on the State of the Union. January 15, 1975 Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and distin- guished guests: Twenty-six years ago, a freshman Congressman, a young fellow with lots of idealism who was out to change the world, stood before Sam Rayburn in the well of the House and solemnly swore to the same oath that all of you took yesterday-an unforgettable experience, and I congratulate you all. Two days later, that same freshman stood at the back of this great Chamber- over there someplace-as President Truman, all charged up by his single- handed election victory, reported as the Constitution requires on the state of the Union. When the bipartisan applause stopped, President Truman said, "I am happy to report to this 81st Congress that the state of the Union is good. Our Nation is better able than ever before to meet the needs of the American people, and to give them their fair chance in the pursuit of happiness. [It] is foremost among the nations of the world in the search for peace." Today, that freshman Member from Michigan stands where Mr. Truman stood, and I must say to you that the state of the Union is not good: Millions of Americans are out of work. Recession and inflation are eroding the money of millions more. Prices are too high, and sales are too slow. 36 anuary 14 January 15 Gerald R. Ford, 1975 [28] or such an This year's Federal deficit will be about $30 billion; next year's probably d equality. $45 billion. The national debt will rise to over $500 billion. :rous other Our plant capacity and productivity are not increasing fast enough. erred to be We depend on others for essential energy. nan. Some people question their Government's ability to make hard decisions $ to inspire and stick with them; they expect Washington politics as usual. nest tribute Yet, what President Truman said on January 5, 1949, is even more true in 1975. We are better able to meet our people's needs. All Americans do have a fairer chance to pursue happiness. Not only are we still the foremost nation in the President Scott King ex- the pursuit of peace but today's prospects of attaining it are infinitely brighter. ory of her late There were 59 million Americans employed at the start of 1949; now there are more than 85 million Americans who have jobs. In comparable dollars, the average income of the American family has doubled during the past 26 years. Now, I want to speak very bluntly. I've got bad news, and I don't expect ig on much, if any, applause. The American people want action, and it will take both the Congress and the President to give them what they want. Progress and solutions can be achieved, and they will be achieved. and distin- My message today is not intended to address all of the complex needs of America. I will send separate messages making specific recommendations for vith lots of domestic legislation, such as the extension of general revenue sharing and the urn in the Voting Rights Act. f you took The moment has come to move in a new direction. We can do this by fash- ioning a new partnership between the Congress on the one hand, the White Chamber- House on the other, and the people we both represent. his single- Let us mobilize the most powerful and most creative industrial nation that state of the ever existed on this Earth to put all our people to work. The emphasis on our economic efforts must now shift from inflation to jobs. am happy To bolster business and industry and to create new jobs, I propose a 1-year tax )ur Nation reduction of $16 billion. Three-quarters would go to individuals and one-quarter >eople, and to promote business investment. lost among This cash rebate to individuals amounts to 12 percent of 1974 tax payments- a total cut of $12 billion, with a maximum of $1,000 per return. r. Truman I call on the Congress to act by April 1. If you do-and I hope you will-the Treasury can send the first check for half of the rebate in May and the second by September. The other one-fourth of the cut, about $4 billion, will go to business, including farms, to promote expansion and to create more jobs. The 1-year reduction for 37 [28] Public Papers of the Presidents January 15 businesses would be in the form of a liberalized investment tax credit increasing the rate to 12 percent for all businesses. I This tax cut does not include the more fundamental reforms needed in our tax system. But it points us in the right direction-allowing taxpayers rather than the Government to spend their pay. Cutting taxes now is essential if we are to turn the economy around. A tax cut offers the best hope of creating more jobs. Unfortunately, it will increase the size of the budget deficit. Therefore, it is more important than ever that we take steps to control the growth of Federal expenditures. Part of our trouble is that we have been self-indulgent. For decades, we have been voting ever-increasing levels of Government benefits, and now the bill has come due. We have been adding so many new programs that the size and the growth of the Federal budget has taken on a life of its own. One characteristic of these programs is that their cost increases automatically every year because the number of people eligible for most of the benefits increases every year. When these programs are enacted, there is no dollar amount set. No one knows what they will cost. All we know is that whatever they cost last year, they will cost more next year. It is a question of simple arithmetic. Unless we check the excessive growth of Federal expenditures or impose on ourselves matching increases in taxes, we will continue to run huge inflationary deficits in the Federal budget. If we project the current built-in momentum of Federal spending through the next 15 years, State, Federal, and local government expenditures could easily comprise half of our gross national product. This compares with less than a third in 1975. I have just concluded the process of preparing the budget submissions for fiscal year 1976. In that budget, I will propose legislation to restrain the growth of a number of existing programs. I have also concluded that no new spending programs can be initiated this year, except for energy. Further, I will not hesitate to veto any new spending programs adopted by the Congress. As an additional step toward putting the Federal Government's house in order, I recommend a 5-percent limit on Federal pay increases in 1975. In all Govern- ment programs tied to the Consumer Price Index-including social security, civil service and military retirement pay, and food stamps-I also propose a 1-year maximum increase of 5 percent. None of these recommended ceiling limitations, over which Congress has final authority, are easy to propose, because in most cases they involve anticipated pay- ments to many, many deserving people. Nonetheless, it must be done. I must 38 nuary 15 January 15 Gerald R. Ford, 1975 [28] acreasing emphasize that I am not asking to eliminate, to reduce, to freeze these payments. I am merely recommending that we slow down the rate at which these payments ed in our increase and these programs grow. rs rather Only a reduction in the growth of spending can keep Federal borrowing down and reduce the damage to the private sector from high interest rates. Only a A tax cut reduction in spending can make it possible for the Federal Reserve System to e the size avoid an inflationary growth in the money supply and thus restore balance to our take steps economy. A major reduction in the growth of Federal spending can help dispel the uncertainty that so many feel about our economy and put us on the way to , we have curing our economic ills. le bill has If we don't act to slow down the rate of increase in Federal spending, the e and the United States Treasury will be legally obligated to spend more than $360 billion in fiscal year 1976, even if no new programs are enacted. These are not matters omatically of conjecture or prediction, but again, a matter of simple arithmetic. The size of S increases these numbers and their implications for our everyday life and the health of our nt set. No economic system are shocking. t last year, I submitted to the last Congress a list of budget deferrals and rescissions. There will be more cuts recommended in the budget that I will submit. Even so, the growth of level of outlays for fiscal year 1976 is still much, much too high. Not only is it too taxes, we high for this year but the decisions we make now will inevitably have a major g through and growing impact on expenditure levels in future years. I think this is a very ould easily fundamental issue that we, the Congress and I, must jointly solve. ess than a Economic disruptions we and others are experiencing stem in part from the fact that the world price of petroleum has quadrupled in the last year. But in all issions for honesty, we cannot put all of the blame on the oil-exporting nations. We, the the growth United States, are not blameless. Our growing dependence upon foreign sources V spending has been adding to our vulnerability for years and years, and we did nothing to not hesitate prepare ourselves for such an event as the embargo of 1973. During the 1960's, this country had a surplus capacity of crude oil which we ise in order, were able to make available to our trading partners whenever there was a dis- all Govern- ruption of supply. This surplus capacity enabled us to influence both supplies :curity, civil and prices of crude oil throughout the world. Our excess capacity neutralized ose a 1-year any effort at establishing an effective cartel, and thus the rest of the world was assured of adequate supplies of oil at reasonable prices. ess has final By 1970, our surplus capacity had vanished, and as a consequence, the latent cipated pay- power of the oil cartel could emerge in full force. Europe and Japan, both one. I must heavily dependent on imported oil, now struggle to keep their economies in 39 [28] Public Papers of the Presidents January 15 balance. Even the United States, our country, which is far more self-sufficient than most other industrial countries, has been put under serious pressure. I am proposing a program which will begin to restore our country's surplus capacity in total energy. In this way, we will be able to assure ourselves reliable and adequate energy and help foster a new world energy stability for other major consuming nations. But this Nation and, in fact, the world must face the prospect of energy difficulties between now and 1985. This program will impose burdens on all of us with the aim of reducing our consumption of energy and increasing our production. Great attention has been paid to the considerations of fairness, and I can assure you that the burdens will not fall more harshly on those less able to bear them. I am recommending a plan to make us invulnerable to cutoffs of foreign oil. It will require sacrifices, but it-and this is most important-it will work. I have set the following national energy goals to assure that our future is as secure and as productive as our past: First, we must reduce oil imports by 1 million barrels per day by the end of this year and by 2 million barrels per day by the end of 1977. Second, we must end vulnerability to economic disruption by foreign -suppliers by 1985. Third, we must develop our energy technology and resources so that the United States has the ability to supply a significant share of the energy needs of the free world by the end of this century. To attain these objectives, we need immediate action to cut imports. Unfortu- nately, in the short term there are only a limited number of actions which can increase domestic supply. I will press for all of them. I urge quick action on the necessary legislation to allow commercial produc- tion at the Elk Hills, California, Naval Petroleum Reserve. In order that we make greater use of domestic coal resources, I am submitting amendments to the Energy Supply and Environmental Coordination Act which will greatly increase the number of powerplants that can be promptly converted to coal. Obviously, voluntary conservation continues to be essential, but tougher programs are needed-and needed now. Therefore, I am using Presidential powers to raise the fee on all imported crude oil and petroleum products. The crude oil fee level will be increased $1 per barrel on February 1, by $2 per barrel on March 1, and by $3 per barrel on April 1. I will take actions to reduce undue hardships on any geographical region. The foregoing are interim administra- 40 inuary 15 January 15 Gerald R. Ford, 1975 [28] E-sufficient tive actions. They will be rescinded when the broader but necessary legislation ire. is enacted. i's surplus To that end, I am requesting the Congress to act within 90 days on a more es reliable comprehensive energy tax program. It includes: excise taxes and import fees for other totaling $2 per barrel on product imports and on all crude oil; deregulation of new natural gas and enactment of a natural gas excise tax. of energy I plan to take Presidential initiative to decontrol the price of domestic crude $ on all of oil on April 1. I urge the Congress to enact a windfall profits tax by that date asing our to ensure that oil producers do not profit unduly. less, and I The sooner Congress acts, the more effective the oil conservation program will ess able to be and the quicker the Federal revenues can be returned to our people. I am prepared to use Presidential authority to limit imports, as necessary, to eign oil. It guarantee success. rk. I want you to know that before deciding on my energy conservation program, iture is as I considered rationing and higher gasoline taxes as alternatives. In my judg- ment, neither would achieve the desired results and both would produce unac- y the end ceptable inequities. A massive program must be initiated to increase energy supply, to cut demand, y foreign and provide new standby emergency programs to achieve the independence we want by 1985. The largest part of increased oil production must come from new ) that the frontier areas on the Outer Continental Shelf and from the Naval Petroleum y needs of Reserve No. 4 in Alaska. It is the intent of this Administration to move ahead with exploration, leasing, and production on those frontier areas of the Outer Unfortu- Continental Shelf where the environmental risks are acceptable. which can Use of our most abundant domestic resource-coal-is severely limited. We must strike a reasonable compromise on environmental concerns with coal. I al produc- am submitting Clean Air [Act] amendments which will allow greater coal use :r that we without sacrificing clean air goals. dments to I vetoed the strip mining legislation passed by the last Congress.¹ With ap- ill greatly propriate changes, I will sign a revised version when it comes to the White ) coal. House. it tougher I am proposing a number of actions to energize our nuclear power program. residential I will submit legislation to expedite nuclear leasing [licensing] and the rapid ducts. The selection of sites. per barrel In recent months, utilities have cancelled or postponed over 60 percent of uce undue planned nuclear expansion and 30 percent of planned additions to non-nuclear dministra- 1 See 1974 volume, Item 326. 41 [28] Public Papers of the Presidents January 15 capacity. Financing problems for that industry are worsening. I am therefore recommending that the 1-year investment tax credit of 12 percent be extended an additional 2 years to specifically speed the construction of powerplants that do not use natural gas or oil. I am also submitting proposals for selective reform of State utility commission regulations. To provide the critical stability for our domestic energy production in the face of world price uncertainty, I will request legislation to authorize and re- quire tariffs, import quotas, or price floors to protect.our energy prices at levels which will achieve energy independence. Increasing energy supplies is not enough. We must take additional steps to cut long-term consumption. I therefore propose to the Congress: legislation to make thermal efficiency standards mandatory for all new buildings in the United States; a new tax credit of up to $150 for those homeowners who install insulation equipment; the establishment of an energy conservation program to help low-income families purchase insulation supplies; legislation to modify and defer automotive pollution standards for 5 years, which will enable us to improve automobile gas mileage by 40 percent by 1980. These proposals and actions, cumulatively, can reduce our dependence on foreign energy supplies from 3 to 5 million barrels per day by 1985. To-make the United States invulnerable to foreign disruption, I propose standby emergency legislation and a strategic storage program of 1 billion barrels of oil for domestic needs and 300 million barrels for national defense purposes. I will ask for the funds needed for energy research and development activities. I have established a goal of 1 million barrels of synthetic fuels and shale oil production per day by 1985 together with an incentive program to achieve it. I have a very deep belief in America's capabilities. Within the next 10 years, my program envisions: 200 major nuclear powerplants; 250 major new coal mines; 150 major coal-fired powerplants; 30 major new [oil] refineries; 20 major new synthetic fuel plants; the drilling of many thousands of new oil wells; the insulation of 18 million homes; and the manufacturing and the sale of millions of new automobiles, trucks, and buses that use much less fuel. I happen to believe that we can do it. In another crisis-the one in 1942- President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 air- craft annually. They did it then. We can do it now. If the Congress and the American people will work with me to attain these targets, they will be achieved and will be surpassed. From adversity, let us seize opportunity. Revenues of some $30 billion from 42 January 15 January 15 Gerald R. Ford, 1975 [28] n therefore higher energy taxes designed to encourage conservation must be refunded to e extended the American people in a manner which corrects distortions in our tax system :plants that wrought by inflation. tive reform People have been pushed into higher tax brackets by inflation, with conse- quent reduction in their actual spending power. Business taxes are similarly tion in the distorted because inflation exaggerates reported profits, resulting in excessive ize and re- taxes. ces at levels Accordingly, I propose that future individual income taxes be reduced by $16.5 billion. This will be done by raising the low-income allowance and reduc- nal steps to ing tax rates. This continuing tax cut will primarily benefit lower- and middle- gislation to income taxpayers. ngs in the For example, a typical family of four with a gross income of $5,600 now pays who install $185 in Federal income taxes. Under this tax cut plan, they would pay nothing. program to A family of four with a gross income of $12,500 now pays $1,260 in Federal to modify taxes. My proposal reduces that total by $300. Families grossing $20,000 would nable us to receive a reduction of $210. Those with the very lowest incomes, who can least afford higher costs, must endence on also be compensated. I propose a payment of $80 to every person 18 years of age 'o make the and older in that very limited category. emergency State and local governments will receive $2 billion in additional revenue shar- or domestic ing to offset their increased energy costs. To offset inflationary distortions and to generate more economic activity, the it activities. corporate tax rate will be reduced from 48 percent to 42 percent. id shale oil Now let me turn, if I might, to the international dimension of the present achieve it. crisis. At no time in our peacetime history has the state of the Nation depended xt 10 years, more heavily on the state of the world. And seldom, if ever, has the state of the T new coal world depended more heavily on the state of our Nation. fineries; 20 The economic distress is global. We will not solve it at home unless we help W oil wells; to remedy the profound economic dislocation abroad. World trade and mone- the sale of tary structure provides markets, energy, food, and vital raw materials-for all fuel. nations. This international system is now in jeopardy. e in 1942- This Nation can be proud of significant achievements in recent years in solv- 00 [50,000] ing problems and crises. The Berlin agreement, the SALT agreements, our new 125,000 air- relationship with China, the unprecedented efforts in the Middle East are immensely encouraging. But the world is not free from crisis. In a world of attain these 150 nations, where nuclear technology is proliferating and regional conflicts continue, international security cannot be taken for granted. illion from So, let there be no mistake about it: International cooperation is a vital factor 43 [28] Public Papers of the Presidents January 15 of our lives today. This is not a moment for the American people to turn in- ward. More than ever before, our own well-being depends on America's deter- mination and America's leadership in the whole wide world. We are a great Nation-spiritually, politically, militarily, diplomatically, and economically. America's commitment to international security has sustained the safety of allies and friends in many areas-in the Middle East, in Europe, and in Asia. Our turning away would unleash new instabilities, new dangers around the globe, which, in turn, would threaten our own security. At the end of World War II, we turned a similar challenge into an historic opportunity and, I might add, an historic achievement. An old order was in disarray; political and economic institutions were shattered. In that period, this Nation and its partners built new institutions, new mechanisms of mutual sup- port and cooperation. Today, as then, we face an historic opportunity. If we act imaginatively and boldly, as we acted then, this period will in retrospect be seen as one of the great creative moments of our Nation's history. The whole world is watching to see how we respond. A resurgent American economy would do more to restore the confidence of the world in its own future than anything else we can do. The program that this Congress passes can demonstrate to the world that we have started to put our own house in order. If we can show that this Nation is able and willing to help other nations meet the common challenge, it can demonstrate that the United States will fulfill its responsibilities as a leader among nations. Quite frankly, at stake is the future of industrialized democracies, which have perceived their destiny in common and sustained it in common for 30 years. The developing nations are also at a turning point. The poorest nations see their hopes of feeding their hungry and developing their societies shattered by the economic crisis. The long-term economic future for the producers of raw materials also depends on cooperative solutions. Our relations with the Communist countries are a basic factor of the world environment. We must seek to build a long-term basis for coexistence. We will stand by our principles. We will stand by our interests. We will act firmly when challenged. The kind of a world we want depends on a broad policy of creating mutual incentives for restraint and for cooperation. As we move forward to meet our global challenges and opportunities, we must have the tools to do the job. Our military forces are strong and ready. This military strength deters aggres- sion against our allies, stabilizes our relations with former adversaries, and 44 uary 15 January 15 Gerald R. Ford, 1975 [28] turn in- protects our homeland. Fully adequate conventional and strategic forces cost 's deter- many, many billions, but these dollars are sound insurance for our safety and for a more peaceful world. ally, and Military strength alone is not sufficient. Effective diplomacy is also essential ustained in preventing conflict, in building world understanding. The Vladivostok ne- Europe, gotiations with the Soviet Union represent a major step in moderating strategic dangers arms competition. My recent discussions with the leaders of the Atlantic com- munity, Japan, and South Korea have contributed to meeting the common historic challenge. was in But we have serious problems before us that require cooperation between the iod, this President and the Congress. By the Constitution and tradition, the execution of rual sup- foreign policy is the responsibility of the President. y. If we In recent years, under the stress of the Vietnam war, legislative restrictions spect be on the President's ability to execute foreign policy and military decisions have proliferated. As a Member of the Congress, I opposed some and I approved others. As President, I welcome the advice and cooperation of the House and dence of the Senate. am that But if our foreign policy is to be successful, we cannot rigidly restrict in arted to legislation the ability of the President to act. The conduct of negotiations is ill- I willing suited to such limitations. Legislative restrictions, intended for the best motives rate that and purposes, can have the opposite result, as we have seen most recently in our nations. trade relations with the Soviet Union. s, which For my part, I pledge this Administration will act in the closest consultation 30 years. with the Congress as we face delicate situations and troubled times throughout tions see the globe. shattered When I became President only 5 months ago, I promised the last Congress lucers of a policy of communication, conciliation, compromise, and cooperation. I renew that pledge to the new Members of this Congress. he world Let me sum it up. America needs a new direction, which I have sought to We will chart here today-a change of course which will: put the unemployed back to it firmly work; increase real income and production; restrain the growth of Federal policy of Government spending; achieve energy independence; and advance the cause of world understanding. we must We have the ability. We have the know-how. In partnership with the Amer- ican people, we will achieve these objectives. 'S aggres- As our 200th anniversary approaches, we owe it to ourselves and to posterity ries, and to rebuild our political and economic strength. Let us make America once 45 [28] Public Papers of the Presidents January 15 again and for centuries more to come what it has so long been-a stronghold and a beacon-light of liberty for the whole world. Thank you. NOTE: The President delivered his address at 1:06 of Representatives. The address was broadcast live p.m. in the House Chamber at the Capitol. He was on radio and television. introduced by Carl Albert, Speaker of the House 29 Statement Announcing Activation of the Energy Research and Development Administration and the Nuclear Regulatory Commission. January 15, 1975 I HAVE today signed an Executive order [11834] which activates on Jan- uary 19, 1975, the Energy Research and Development Administration (ERDA) and the Nuclear Regulatory Commission (NRC). The activation of these two new agencies has special meaning for me. The proposal to create them was submitted to the Congress in June 1973. As a Member of the House of Representatives at the time, I gave strong support to their creation and cast my vote for the legislation in December 1973. As Vice President, I followed closely the progress of the bill through the Senate. I was gratified to sign the bill into law on October 11, 1974. I am now pleased to sign the order which activates the two agencies. Both agencies will play significant roles in our national energy programs, thereby influencing the lives of all our people. The Nuclear Regulatory Commission will carry out the licensing and regula- tory functions formerly assigned the Atomic Energy Commission. Commercial nuclear power will have an increasingly important role in our nation's energy supply in the years ahead. This new Commission will devote its full attention to assuring the safety as well as the reliability of this critically important source of energy. The creation of the NRC should end the concern that some have expressed about the past when one agency, the Atomic Energy Commission, was assigned the responsibility for both the technological development and the regulation of civilian nuclear power. The Energy Research and Development Administration will bring together in a single agency the major Federal energy research and development pro- grams, and bear the responsibility for leading the national effort to develop the needed technology to assure that the United States will have ample and secure 46 Jan. 19 Administration of Jimmy Carter, 1978 pendence of the United States of America That was the duty Abraham Lincoln the two hundred and second. faced when our land was torn apart by JIMMY CARTER conflict in the War Between the States. That was the duty faced by Franklin [Filed with the Office of the Federal Register, Roosevelt when he led America out of an 12:17 p.m., January 20, 1978] economic depression and again when he led America to victory in war. There are other times when there is no single overwhelming crisis, yet profound The State of the Union national interests are at stake. Address Delivered Before a Joint Session of the At such times the risk of inaction can Congress. January 19, 1978 be equally great. It becomes the task of leaders to call forth the vast and restless Mr. President, Mr. Speaker, Members of energies of our people to build for the the 95th Congress, ladies and gentlemen: future. Two years ago today we had the first That is what Harry Truman did in the caucus in Iowa, and one year ago tomor- years after the Second World War, when row, I walked from here to the White we helped Europe and Japan rebuild House to take up the duties of President themselves and secured an international of the United States. I didn't know it then order that has protected freedom from when I walked, but I've been trying to aggression. save energy ever since. [Laughter] We live in such times now, and we face I return tonight to fulfill one of those such duties. duties of the Constitution: to give to the Congress-and to the Nation-informa- We've come through a long period of tion on the state of the Union. turmoil and doubt, but we've once again Militarily, politically, economically, and found our moral course, and with a new in spirit, the state of our Union is sound. spirit, we are striving to express our best instincts to the rest of the world. We are a great country, a strong coun- try, a vital and a dynamic country-and There is all across our land a growing so we will remain. sense of peace and a sense of common We are a confident people and a hard- purpose. This sense of unity cannot be working people, a decent and a compas- expressed in programs or in legislation or sionate people-and so we will remain. in dollars. It's an achievement that be- I want to speak to you tonight about longs to every individual American. This where we are and where we must go, unity ties together, and it towers over all about what we have done and what we our efforts here in Washington, and it must do. And I want to pledge to you my serves as an inspiring beacon for all of us best efforts and ask you to pledge yours. who are elected to serve. Each generation of Americans has to This new atmosphere demands a new face circumstances not of its own choos- spirit, a partnership between those of us ing, but by which its character is meas- who lead and those who elect. The foun- ured and its spirit is tested. dations of this partnership are truth, the There are times of emergency, when courage to face hard decisions, concern a nation and its leaders must bring their for one another and the common good energies to bear on a single urgent task. over special interests, and a basic faith and 90 Administration of Jimmy Carter, 1978 Jan. 19 :y Abraham Lincoln trust in the wisdom and strength and where further delay will only lead to more id was torn apart by judgment of the American people. harsh and painful solutions. Between the States. For the first time in a generation, we Every day we spend more than $120 y faced by Franklin are not haunted by a major international million for foreign oil. This slows our eco- led America out of an crisis or by domestic turmoil, and we now nomic growth, it lowers the value of the 1 and again when he have a rare and a priceless opportunity dollar overseas, and it aggravates unem- »ry in war. to address persistent problems and bur- ployment and inflation here at home. imes when there is no dens which come to us as a nation- Now we know what we must do-in- g crisis, yet profound quietly and steadily getting worse over the crease production. We must cut down on e at stake. years. waste. And we must use more of those e risk of inaction can As President, I've had to ask you, the fuels which are plentiful and more perma- becomes the task of Members of Congress, and you, the nent. We must be fair to people, and we the vast and restless American people, to come to grips with must not disrupt our Nation's economy ople to build for the some of the most difficult and hard ques- and our budget. tions facing our society. Now, that sounds simple. But I recog- We must make a maximum effort, be- nize the difficulties involved. I know that ry Truman did in the nd World War, when cause if we do not aim for the best, we it is not easy for the Congress to act. But and Japan rebuild are very. likely to achieve little. I see no the fact remains that on the energy legis- ired an international benefit to the country if we delay, because lation, we have failed the American tected freedom from the problems will only get worse. people. Almost 5 years after the oil em- We need patience and good will, but bargo dramatized the problem for us all, we really need to realize that there is a we still do not have a national energy mes now, and we face limit to the role and the function of gov- program. Not much longer can we toler- ernment. Government cannot solve our ate this stalemate. It undermines our na- ugh a long period of problems, it can't set our goals, it cannot tional interest both at home and abroad. but we've once again define our vision. Government cannot We must succeed, and I believe we will. urse, and with a new eliminate poverty or provide a bountiful Our main task at home this year, with ig to express our best economy or reduce inflation or save our energy a central element, is the Nation's f the world. cities or cure illiteracy or provide energy. economy. We must continue the recovery S our land a growing And government cannot mandate good- and further cut unemployment and a sense of common ness. Only a true partnership between inflation. of unity cannot be government and the people can ever Last year was a good one for the ns or in legislation or hope to reach these goals. United States. We reached all of our achievement that be- Those of us who govern can sometimes major economic goals for 1977. Four mil- idual American. This inspire, and we can identify needs and lion new jobs were created-an alltime and it towers over all marshal resources, but we simply cannot record-and the number of unemployed Washington, and it be the managers of everything and every- dropped by more than a million. Unem- g beacon for all of us body. ployment right now is the lowest it has erve. We here in Washington must move been since 1974, and not since World War here demands a new away from crisis management, and we II has such a high percentage of Ameri- between those of us must establish clear goals for the future- can people been employed. who elect. The foun- The rate of inflation went down. There immediate and the distant future-which hership are truth, the was a good growth in business profits and rd decisions, concern will let us work together and not in con- investments, the source of more jobs for d the common good flict. Never again should we neglect a our workers, and a higher standard of liv- , and a basic faith and growing crisis like the shortage of energy, ing for all our people. After taxes and in- 91 Jan. 19 Administration of Jimmy Carter, 1978 flation, there was a healthy increase in Almost $17 billion in income tax cuts workers' wages. will go to individuals. Ninety-six percent And this year, our country will have of all American taxpayers will see their the first $2 trillion economy in the his- taxes go down. For a typical family of tory of the world. four, this means an annual saving of more Now, we are proud of this progress the than $250 a year, or a tax reduction of first year, but we must do even better in about 20 percent. A further $2 billion cut the future. in excise taxes will give more relief and We still have serious problems on which also contribute directly to lowering the all of us must work together. Our trade rate of inflation. deficit is too large. Inflation is still too And we will also provide strong addi- high, and too many Americans still do not tional incentives for business investment have a job. and growth through substantial cuts in Now, I didn't have any simple answers the corporate tax rates and improvement for all these problems. But we have de- in the investment tax credit. veloped an economic policy that is work- Now, these tax proposals will increase ing, because it's simple, balanced, and opportunity everywhere in the Nation. fair. It's based on four principles: But additional jobs for the disadvantaged First, the economy must keep on ex- deserve special attention. panding to produce new jobs and better We've already passed laws to assure income, which our people need. The equal access to the voting booth and to fruits of growth must be widely shared. restaurants and to schools, to housing, and More jobs must be made available to laws to permit access to jobs. But job.op- those who have been bypassed until now. portunity-the chance to earn a decent And the tax system must be made fairer living-is also a basic human right, which and simpler. we cannot and will not ignore. Secondly, private business and not the A major priority for our Nation is the Government must lead the expansion in final elimination of the barriers that re- the future. strict the opportunities available to Third, we must lower the rate of infla- women and also to black people and tion and keep it down. Inflation slows Hispanics and other minorities. We've down economic growth, and it's the most come a long way toward that goal. But cruel to the poor and also to the elderly there is still much to do. What we in- and others who live on fixed incomes. herited from the past must not be per- And fourth, we must contribute to the mitted to shackle us in the future. strength of the world economy. I'll be asking you for a substantial in- I will announce detailed proposals for crease in funds for public jobs for our improving our tax system later this week. young people, and I also am recommend- We can make our tax laws fairer, we can make them simpler and easier to under- ing that the Congress continue the public stand, and at the same time, we can- service employment programs at more and we will-reduce the tax burden on than twice the level of a year ago. When American citizens by $25 billion. welfare reform is completed, we will have The tax reforms and the tax reductions more than a million additional jobs so go together. Only with the long overdue that those on welfare who are able to work reforms will the full tax cut be advisable. can work. 92 Administration of Jimmy Carter, 1978 Jan. 19 in income tax cuts However, again, we know that in our Government can help us by stimulating S. Ninety-six percent free society, private business is still the private investment and by maintaining a payers will see their best source of new jobs. Therefore, I will responsible economic policy. Through a a typical family of propose a new program to encourage busi- new top-level review process, we will do a nnual saving of more nesses to hire young and disadvantaged better job of reducing Government reg- r a tax reduction of Americans. These young people only need ulation that drives up costs and drives up further $2 billion cut skills and a chance in order to take their prices. give more relief and place in our economic system. Let's give But again, Government alone cannot ctly to lowering the them the chance they need. A major step bring down the rate of inflation. When a in the right direction would be the early level of high inflation is expected to con- provide strong addi- passage of a greatly improved Humphrey- tinue, then companies raise prices to pro- business investment Hawkins bill. tect their profit margins against prospec- substantial cuts in My budget for 1979 addresses these na- tive increases in wages and other costs, es and improvement tional needs, but it is lean and tight. I while workers demand higher wages as X credit. have cut waste wherever possible. protection against expected price in- oposals will increase I am proposing an increase of less than creases. It's like an escalation in the arms ere in the Nation. 2 percent after adjusting for inflation- race, and understandably, no one wants or the disadvantaged the smallest increase in the Federal budget to disarm alone. tion. in 4 years. Now, no one firm or a group of workers ssed laws to assure Lately, Federal spending has taken a can halt this process. It's an effort that we voting booth and to steadily increasing portion of what Amer- must all make together. I'm therefore ask- 100ls, to housing, and icans produce. Our new budget reverses ing government, business, labor, and other to jobs. But job op- that trend, and later I hope to bring the groups to join in a voluntary program to ce to earn a decent Government's toll down even further. moderate inflation by holding wage and human right, which And with your help, we'll do that. price increases in each sector of the econ- ot ignore. In time of high employment and a omy during 1978 below the average in- or our Nation is the strong economy, deficit spending should creases of the last 2 years. the barriers that re- not be a feature of our budget. As the I do not believe in wage and price con- nities available to economy continues to gain strength and as trols. A sincere commitment to voluntary black people and our unemployment rates continue to fall, constraint provides a way-perhaps the r minorities. We've revenues will grow. With careful plan- only way-to fight inflation without Gov- ward that goal. But ning, efficient management, and proper ernment interference. to do. What we in- restraint on spending, we can move rap- As I came into the Capitol tonight, I st must not be per- idly toward a balanced budget-and we saw the farmers, my fellow farmers, stand- in the future. will. ing out in the snow. I'm familiar with for a substantial in- Next year the budget deficit will be only their problem, and I know from Congress public jobs for our slightly less than this year. But one-third action that you are too. When I was run- also am recommend- of the deficit is due to the necessary tax ning Carters Warehouse, we had spread cuts that I've proposed. This year the $ continue the public on our own farms 5-10-15 fertilizer for right choice is to reduce the burden on programs at more taxpayers and provide more jobs for our about $40 a ton. The last time I was of a year ago. When people. home, the price was about $100 a ton. The npleted, we will have The third element in our program is a cost of nitrogen has gone up 150 percent, 1 additional jobs SO renewed attack on inflation. We've and the price of products that farmers who are able to work learned the hard way that high unemploy- sell has either stayed the same or gone ment will not prevent or cure inflation. down a little. 93 Jan. 19 Administration of Jimmy Carter, 1978 Now, this past year in 1977, you, the tional health care later on this year. I will Congress, and I together passed a new not repeat these tonight. But there are agricultural act. It went into effect Oc- several other points that I would like to tober 1. It'll have its first impact on the make directly to you. 1978 crops. It will help a great deal. It'll During these past years, Americans add $61/2 billion or more to help the have seen our Government grow far from farmers with their price supports and us. target prices. For some citizens, the Government has Last year we had the highest level of almost become like a foreign country, so exports of farm products in the history of strange and distant that we've often had our country-$24 billion. We expect to to deal with it through trained ambassa- have more this year. We'll be working to- dors who have sometimes become too gether. But I think it's incumbent on us to powerful and too influential-lawyers, ac- monitor very carefully the farm situation countants, and lobbyists. This cannot go and continue to work harmoniously with on. the farmers of our country. What's best We must have what Abraham Lincoln for the farmers, the farm families, in the wanted-a government for the people. long run is also best for the consumers of We've made progress toward that kind our country. of government. You've given me the au- Economic success at home is also the key thority I requested to reorganize the Fed- to success in our international economic eral bureaucracy. And I am using that policy. An effective energy program, authority. strong investment and productivity, and We've already begun a series of re- controlled inflation will provide [improve] organization plans which will be com- our trade balance and balance it, and it pleted over a period of 3 years. We have will help to protect the integrity of the also proposed abolishing almost 500 Fed- dollar overseas. eral advisory and other commissions and By working closely with our friends boards. But I know that the American abroad, we can promote the economic people are still sick and tired of Federal health of the whole world, with fair and paperwork and redtape. Bit by bit we are balanced agreements lowering the barriers to trade. chopping down the thicket of unneces- Despite the inevitable pressures that sary Federal regulations by which Gov- build up when the world economy suffers ernment too often interferes in our per- from high unemployment, we must firm- sonal lives and our personal business. ly resist the demands for self-defeating We've cut the public's Federal paperwork protectionism. But free trade must also be load by more than 12 percent in less than fair trade. And I am determined to pro- a year. And we are not through cutting. tect American industry and American We've made a good start on turning the workers against foreign trade practices gobbledygook of Federal regulations into which are unfair or illegal. plain English that people can understand. In a separate written message to Con- But we know that we still have a long gress, I've outlined other domestic initia- way to go. tives, such as welfare reform, consumer We've brought together parts of 11 protection, basic education skills, urban Government agencies to create a new De- policy, reform of our labor laws, and na- partment of Energy. And now it's time 94 Administration of Jimmy Carter, 1978 Jan. 19 er on this year. I will to take another major step by creating a world must know that in support of hu- night. But there are separate Department of Education. man rights, the United States will stand that I would like to But even the best organized Govern- firm. ment will only be as effective as the peo- We expect no quick or easy results, but it years, Americans ple who carry out its policies. For this there has been significant movement to- nment grow far from reason, I consider civil service reform to ward greater freedom and humanity in be absolutely vital. Worked out with the several parts of the world. the Government has civil servants themselves, this reorganiza- Thousands of political prisoners have 1 foreign country, so tion plan will restore the merit principle been freed. The leaders of the world— hat we've often had to a system which has grown into a bu- even our ideological adversaries-now see gh trained ambassa- reaucratic maze. It will provide greater that their attitude toward fundamental netimes become too management flexibility and better re- human rights affects their standing in the uential-lawyers, ac- wards for better performance without international community, and it affects vists. This cannot go compromising job security. their relations with the United States. Then and only then can we have a To serve the interests of every Ameri- at Abraham Lincoln government that is efficient, open, and can, our foreign policy has three major ent for the people. truly worthy of our people's understand- goals. ess toward that kind ing and respect. I have promised that we The first and prime concern is and will ve given me the au- will have such a government, and I in- remain the security of our country. ) reorganize the Fed- tend to keep that promise. Security is based on our national will, nd I am using that In our foreign policy, the separation of and security is based on the strength of people from government has been in the our Armed Forces. We have the will, and :gun a series of re- past a source of weakness and error. In a militarily we are very strong. which will be com- democratic system like ours, foreign policy Security also comes through -the of 3 years. We have decisions must be able to stand the test of strength of our alliances. We have re- ning almost 500 Fed- public examination and public debate. If confirmed our commitment to the defense her commissions and we make a mistake in this administration, of Europe, and this year we will demon- that the American it will be on the side of frankness and strate that commitment by further mod- and tired of Federal openness with the American people. ernizing and strengthening our military tpe. Bit by bit we are In our modern world, when the deaths thicket of unneces- of literally millions of people can result capabilities there. from a few terrifying seconds of destruc- Security can also be enhanced by agree- tions by which Gov- nterferes in our per- tion, the path of national strength and se- ments with potential adversaries which reduce the threat of nuclear disaster while curity is identical to the path of peace. r personal business. Tonight, I am happy to report that maintaining our own relative strategic 's Federal paperwork because we are strong, our Nation is at capability. 2 percent in less than peace with the world. In areas of peaceful competition with not through cutting. We are a confident nation. We've re- the Soviet Union, we will continue to d start on turning the stored a moral basis for our foreign policy. more than hold our own. The very heart of our identity as a nation At the same time, we are negotiating leral regulations into ople can understand. is our firm commitment to human rights. with quiet confidence, without haste, we still have a long We stand for human rights because we with careful determination, to ease the tensions between us and to ensure believe that government has as a pur- pose to promote the well-being of its cit- greater stability and security. ogether parts of 11 izens. This is true in our domestic policy; The strategic arms limitation talks have S to create a new De- it's also true in our foreign policy. The been long and difficult. We want a mu- And now it's time 95 Jan. 19 Administration of Jimmy Carter, 1978 tual limit on both the quality and the In the Middle East, we are contribut- quantity of the giant nuclear arsenals of ing our good offices to maintain the both nations, and then we want actual momentum of the current negotiations reductions in strategic arms as a major and to keep open the lines of communi- step toward the ultimate elimination of cation among the Middle Eastern leaders. nuclear weapons from the face of the The whole world has a great stake in the Earth. success of these efforts. This is a precious If these talks result in an agreement opportunity for a historic settlement of a this year-and I trust they will-I pledge longstanding conflict-an opportunity to you that the agreement will maintain which may never come again in our life- and enhance the stability of the world's time. strategic balance and the security of the Our role has been difficult and some- United States. times thankless and controversial. But it For 30 years, concerted but unsuccess- has been constructive and it has been nec- ful efforts have been made to ban the essary, and it will continue. testing of atomic explosives-both mili- Our third major foreign policy goal is tary weapons and peaceful nuclear de- one that touches the life of every Ameri- vices. can citizen every day-world economic We are hard at work with Great Brit- growth and stability. ain and the Soviet Union on an agree- This requires strong economic perform- ment which will stop testing and will ance by the industrialized democracies protect our national security and provide like ourselves and progress in resolving for adequate verification of compliance. the global energy crisis. Last fall, with the We are now making, I believe, good prog- help. of others, we- succeeded in our vig- ress toward this comprehensive ban on orous efforts to maintain the stability of nuclear explosions. the price of oil. But as many foreign lead- We are also working vigorously to halt ers have emphasized to me personally and, the proliferation of nuclear weapons I am sure, to you, the greatest future con- tribution that America can make to the among the nations of the world which do not now have them and to reduce the world economy would be an effective en- deadly global traffic in conventional arms ergy conservation program here at home. sales. Our stand for peace is suspect if We will not hesitate to take the actions we are also the principal arms merchant needed to protect the integrity of the American dollar. of the world. So, we've decided to cut down our arms transfers abroad on a We are trying to develop a more just in- year-by-year basis and to work with other ternational system. And in this spirit, we major arms exporters to encourage their are supporting the struggle for human de- similar constraint. velopment in Africa, in Asia, and in Latin America. Every American has a stake in our sec- ond major goal-a world at peace. In a Finally, the world is watching to see nuclear age, each of us is threatened when how we act on one of our most important peace is not secured everywhere. We are and controversial items of business-ap- trying to promote harmony in those parts proval of the Panama Canal treaties. The of the world where major differences exist treaties now before the Senate are the re- among other nations and threaten inter- sult of the work of four administrations- national peace. two Democratic, two Republican. 96 Administration of Jimmy Carter, 1978 Jan. 19 we are contribut- They guarantee that the canal will be We Americans have a great deal of ; to maintain the urrent negotiations open always for unrestricted use by the work to do together. In the end, how well ships of the world. Our ships have the we do that work will depend on the spirit lines of communi- right to go to the head of the line for in which we approach it. We must seek dle Eastern leaders. a great stake in the priority of passage in times of emergency fresh answers, unhindered by the stale S. This is a precious or need. We retain the permanent right prescriptions of the past. to defend the canal with our own military It has been said that our best years are oric settlement of a forces, if necessary, to guarantee its behind us. But I say again that America's t-an opportunity openness and its neutrality. best is still ahead. We have emerged from ie again in our life- The treaties are to the clear advantage bitter experiences chastened but proud, of ourselves, the Panamanians, and the confident once again, ready to face chal- difficult and some- controversial. But it other users of the canal. Ratifying the lenges once again, and united once again. and it has been nec- Panama Canal treaties will demonstrate We come together tonight at a solemn ontinue. our good faith to the world, discourage time. Last week the Senate lost a good the spread of hostile ideologies in this and honest man-Lee Metcalf of Mon- reign policy goal is life of every Ameri- hemisphere, and directly contribute to the tana. y-world economic economic well-being and the security of And today, the flag of the United States the United States. flew at half-mast from this Capitol and I have to say that that's very welcome from American installations and ships all economic perform- ialized democracies applause. [Laughter] over the world, in mourning for Senator rogress in resolving There were two moments on my recent Hubert Humphrey. S. Last fall, with the journey which, for me, confirmed the Because he exemplified so well the joy cceeded in our vig- final aims of our foreign policy and what and the zest of living, his death reminds tain the stability of it always must be. us not so much of our own mortality, but many foreign lead- One was in a little village in India, of the possibilities offered to us by life. ) me personally and, where I met a people as passionately at- He always looked to the future with a greatest future con- tached to their rights and liberties as we special American kind of confidence, of ca can make to the are, but whose children have a far smaller hope and enthusiasm. And the best way I be an effective en- chance for good health or food or educa- that we can honor him is by following gram here at home. tion or human fulfillment than a child his example. to take the actions born in this country. Our task-to use the words of Sena- ne integrity of the The other moment was in Warsaw, tor Humphrey-is "reconciliation, re- capital of a nation twice devastated by building, and rebirth." velop a more just in- war in this century. There, people have Reconciliation of private needs and in- nd in this spirit, we rebuilt the city which war's destruction terests into a higher purpose. uggle for human de- took from them. But what was new only Rebuilding the old dreams of justice n Asia, and in Latin emphasized clearly what was lost. and liberty, and country and community. What I saw in those two places crys- Rebirth of our faith in the common is watching to see talized for me the purposes of our own good. our most important Nation's policy: to ensure economic jus- Each of us here tonight-and all who ns of business-ap- tice, to advance human rights, to resolve are listening in your homes-must re- Canal treaties. The conflicts without violence, and to pro- dedicate ourselves to serving the common e Senate are the re- claim in our great democracy our con- good. We are a community, a beloved ir administrations- community, all of us. Our individual fates Republican. stant faith in the liberty and dignity of are linked, our futures intertwined. And human beings everywhere. if we act in that knowledge and in that 97 Jan. 19 Administration of Jimmy Carter, 1978 spirit, together, as the Bible says, we can of our government remained in the after- move mountains. math of Watergate; and many of our Thank you very much. most pressing social problems had not been addressed. NOTE: The President spoke at 9 p.m. in the House Chamber at the Capitol. He was intro- In 1977, my Administration did not duced by Thomas P. O'Neill, Jr., Speaker of solve all of those problems. But Congress the House of Representatives. The address joined us in tackling many of these issues, Was broadcast live on radio and television. and together we made progress. Now that a year has passed, I believe we are a more confident people, with more trust in our The State of the Union institutions. We are a country on the move Annual Message to the Congress. again, prepared to address our problems January 19, 1978 with boldness and confidence, at home and abroad. We have reasserted our con- To the Congress of the United States: cern for the problems of people here at Tonight's State of the Union Address home and reaffirmed our position of moral concentrates on this year's highest priori- leadership in the world. ties-a strong energy bill; a coordinated This year, my domestic goals will con- economic program of job creation, tax tinue to reflect those concerns that guided reduction, tax reform and anti-inflation my actions in 1977: restoring economic measures; making the government more prosperity; meeting our Nation's human effective and efficient; maintaining the needs; making the government more effi- peace through a strong national defense; cient and more responsive; and develop- and ratifying both the Panama Canal ing and protecting our natural resources. Treaties and, if completed, the SALT II RESTORING ECONOMIC PROSPERITY treaty. It is important that the Congress and I am devoting a substantial part of my the Nation also understand what our State of the Union Address to the need other important initiatives and goals will for a comprehensive economic program, be for 1978. I am therefore sending to and I will devote the bulk of my Economic Congress this separate, more detailed Report to Congress, to be delivered to- State of the Union Message, which de- morrow, to a complete description of my scribes Administration priorities in the Administration's economic goals and ob- areas not fully covered in the Address. jectives. In this Message, therefore, I will DOMESTIC AFFAIRS not repeat those statements but I want to A number of serious domestic problems set forth briefly the key elements of those faced the Nation when I took office one proposals: year ago. The economy had not yet fully -a $23 billion income tax cut in 1979, recovered from the recession; our coun- with $17 billion going to individuals try had no sound energy policy; the Fed- and their families and $6 billion eral government was operating ineffi- going to businesses; ciently and ineffectively in many areas; -a tax reform program designed to concerns about the openness and integrity make our tax laws fairer and simpler; 98 Linesen Wilson 1916 (18min) Viron 12 (1st sentence) RR 86 Uerecland 1887 she To nadio The Annual Message to the Congress I shall be happy to submit the matter, with a favorable recom- mendation, to the Congress at the first opportunity. Very sincerely yours, Honorable A. W. Mellon, Washington, D. C. 235 The Annual Message to the Congress. January 6, 1937 Mr. President, Mr. Speaker, Members of the Congress of the United States: OR the first time in our national history a President de- F livers his Annual Message to a new Congress within a fortnight of the expiration of his term of office. While there is no change in the Presidency this year, change will occur in future years. It is my belief that under this new constitutional practice, the President should in every fourth year, in so far as seems reasonable, review the existing state of our national affairs and outline broad future problems, leaving specific recommendations for future legislation to be made by the President about to be inaugurated. At this time, however, circumstances of the moment compel me to ask your immediate consideration of: First, measures ex- tending the life of certain authorizations and powers which, under present statutes, expire within a few weeks; second, an addition to the existing Neutrality Act to cover specific points raised by the unfortunate civil strife in Spain; and, third, a de- ficiency appropriation bill for which I shall submit estimates this week. In March, 1933, the problems which faced our Nation and which only our national Government had the resources to meet were more serious even than appeared on the surface. It was not only that the visible mechanism of economic life had broken down. More disturbing was the fact that long neglect of the needs of the underprivileged had brought too many of our 634 agress The Annual Message to the Congress 1 a favorable recom- people to the verge of doubt as to the successful adaptation of our unity. historic traditions to the complex modern world. In that lay a challenge to our democratic form of Government itself. Ours was the task to prove that democracy could be made to function in the world of today as effectively as in the simpler world of a hundred years ago. Ours was the task to do more than to argue a theory. The times required the confident answer of e Congress. performance to those whose instinctive faith in humanity made them want to believe that in the long run democracy would prove superior to more extreme forms of Government as a process of ngress of the United getting action when action was wisdom, without the spiritual sacrifices which those other forms of Government exact. ory a President de- That challenge we met. To meet it required unprecedented Congress within a activities under Federal leadership to end abuses, to restore a m of office. While large measure of material prosperity, to give new faith to mil- this year, change lions of our citizens who had been traditionally taught to expect belief that under that democracy would provide continuously wider opportunity it should in every and continuously greater security in a world where science was eview the existing continuously making material riches more available to man. 1 future problems, In the many methods of attack with which we met these prob- islation to be made lems, you and I, by mutual understanding and by determination to cooperate, helped to make democracy succeed by refusing to e moment compel permit unnecessary disagreement to arise between two of our First, measures ex- branches of Government. That spirit of cooperation was able to nd powers which, solve difficulties of extraordinary magnitude and ramification weeks; second, an with few important errors, and at a cost cheap when measured ver specific points by the immediate necessities and the eventual results. ; and, third, a de- I look forward to a continuance of that cooperation in the next omit estimates this four years. I look forward also to a continuance of the basis of that cooperation - mutual respect for each other's proper sphere I our Nation and of functioning in a democracy which is working well, and a com- resources to meet mon-sense realization of the need for play in the joints of the surface. machine. economic life had On that basis, it is within the right of the Congress to deter- at long neglect of mine which of the many new activities shall be continued or too many of our abandoned, increased or curtailed. 635 The Annual Message to the Congress On that same basis, the President alone has the responsibility for their administration. I find that this task of Executive manage- ment has reached the point where our administrative machinery needs comprehensive overhauling. I shall, therefore, shortly ad- dress the Congress more fully in regard to modernizing and improving the Executive branch of the Government. That cooperation of the past four years between the Congress and the President has aimed at the fulfillment of a twofold policy: first, economic recovery through many kinds of assistance to agri- culture, industry and banking; and, second, deliberate improve- ment in the personal security and opportunity of the great mass of our people. The recovery we sought was not to be merely temporary. It was to be a recovery protected from the causes of previous dis- asters. With that aim in view - to prevent a future similar crisis- you and I joined in a series of enactments - safe banking and sound currency, the guarantee of bank deposits, protection for the investor in securities, the removal of the threat of agricultural surpluses, insistence on collective bargaining, the outlawing of sweat shops, child labor and unfair trade practices, and the begin- nings of security for the aged and the worker. Nor was the recovery we sought merely a purposeless whirring of machinery. It is important, of course, that every man and woman in the country be able to find work, that every factory run, that business and farming as a whole earn profits. But Gov- ernment in a democratic Nation does not exist solely, or even primarily, for that purpose. It is not enough that the wheels turn. They must carry us in the direction of a greater satisfaction in life for the average man. The deeper purpose of democratic government is to assist as many of its citizens as possible, especially those who need it most, to improve their conditions of life, to retain all personal liberty which does not adversely affect their neighbors, and to pursue the happiness which comes with security and an opportunity for recreation and culture. Even with our present. recovery we are far from the goal of 636 gress The Annual Message to the Congress is the responsibility that deeper purpose. There are far-reaching problems still with Executive manage- us for which democracy must find solutions if it is to consider istrative machinery itself successful. erefore, shortly ad- For example, many millions of Americans still live in habita- modernizing and tions which not only fail to provide the physical benefits of mod- rnment. ern civilization but breed disease and impair the health of future tween the Congress generations. The menace exists not only in the slum areas of the of a twofold policy: very large cities, but in many smaller cities as well. It exists on of assistance to agri- tens of thousands of farms, in varying degrees, in every part of deliberate improve- the country. :y of the great mass Another example is the prevalence of an un-American type of tenant farming. I do not suggest that every farm family has the erely temporary. It capacity to earn a satisfactory living on its own farm. But many ses of previous dis- thousands of tenant farmers, indeed most of them, with some ture similar crisis- financial assistance and with some advice and training, can be -safe banking and made self-supporting on land which can eventually belong to sits, protection for them. The Nation would be wise to offer them that chance reat of agricultural instead of permitting them to go along as they do now, year after ;, the outlawing of year, with neither future security as tenants nor hope of owner- ices, and the begin- ship of their homes nor expectation of bettering the lot of their children. urposeless whirring Another national problem is the intelligent development of at every man and our social security system, the broadening of the services it ren- that every factory ders, and practical improvement in its operation. In many Na- n profits. But Gov- tions where such laws are in effect, success in meeting the expecta- kist solely, or even tions of the community has come through frequent amendment of the original statute. y must carry us in And, of course, the most far-reaching and the most inclusive r the average man. problem of all is that of unemployment and the lack of economic ient is to assist as balance of which unemployment is at once the result and the : who need it most, symptom. The immediate question of adequate relief for the ill personal liberty needy-unemployed who are capable of performing useful work, , and to pursue the I shall discuss with the Congress during the coming months. The n opportunity for broader task of preventing unemployment is a matter of long- range evolutionary policy. To that we must continue to give our from the goal of best thought and effort. We cannot assume that immediate indus- 637 The Annual Message to the Congress trial and commercial activity which mitigates present pressures justifies the national Government at this time in placing the un- employment problem in a filing cabinet of finished business. Fluctuations in employment are tied to all other wasteful fluc- tuations in our mechanism of production and distribution. One of these wastes is speculation. In securities or commodities, the larger the volume of speculation, the wider become the upward and downward swings and the more certain the result that in the long run there will be more losses than gains in the underlying wealth of the community. And, as is now well known to all of us, the same net loss to society comes from reckless overproduction and monopolistic underproduction of natural and manufactured commodities. Overproduction, underproduction and speculation are three evil sisters who distill the troubles of unsound inflation and dis- astrous deflation. It is to the interest of the Nation to have Gov- ernment help private enterprise to gain sound general price levels and to protect those levels from wide perilous fluctuations. We know now that if early in 1931 Government had taken the steps which were taken two and three years later, the depression would never have reached the depths of the beginning of 1933. Sober second thought confirms most of us in the belief that the broad objectives of the National Recovery Act were sound. We know now that its difficulties arose from the fact that it tried to do too much. For example, it was unwise to expect the same agency to regulate the length of working hours, minimum wages, child labor and collective bargaining on the one hand and the complicated questions of unfair trade practices and business con- trols on the other. The statute of N.R.A. has been outlawed. The problems have not. They are still with us. That decent conditions and adequate pay for labor, and just return for agriculture, can be secured through parallel and simul- taneous action by forty-eight States is a proven impossibility. It is equally impossible to obtain curbs on monopoly, unfair trade practices and speculation by State action alone. There are those 638 Congress The Annual Message to the Congress gates present pressures who, sincerely or insincerely, still cling to State action as a theo- time in placing the un- retical hope. But experience with actualities makes it clear that finished business. Federal laws supplementing State laws are needed to help solve all other wasteful fluc- the problems which result from modern invention applied in an and distribution. One industrialized Nation which conducts its business with scant re- es or commodities, the gard to State lines. er become the upward During the past year there has been a growing belief that there n the result that in the is little fault to be found with the Constitution of the United ins in the underlying States as it stands today. The vital need is not an alteration of our fundamental law, but an increasingly enlightened view with , the same net loss to reference to it. Difficulties have grown out of its interpretation; on and monopolistic but rightly considered, it can be used as an instrument of prog- ured commodities. ress, and not as a device for prevention of action. speculation are three It is worth our while to read and reread the preamble of the und inflation and dis- Constitution, and Article I thereof which confers the legislative Nation to have Gov- powers upon the Congress of the United States. It is also worth id general price levels our while to read again the debates in the Constitutional Con- lous fluctuations. We vention of one hundred and fifty years ago. From such reading, it had taken the steps I obtain the very definite thought that the members of that the depression would Convention were fully aware that civilization would raise prob- ing of 1933. lems for the proposed new Federal Government, which they us in the belief that themselves could not even surmise; and that it was their definite ery Act were sound. intent and expectation that a liberal interpretation in the years the fact that it tried to come would give to the Congress the same relative powers over : to expect the same new national problems as they themselves gave to the Congress rs, minimum wages, over the national problems of their day. e one hand and the In presenting to the Convention the first basic draft of the es and business con- Constitution, Edmund Randolph explained that it was the pur- pose "to insert essential principles only, lest the operation of The problems have government should be clogged by rendering those provisions permanent and unalterable which ought to be accommodated to for labor, and just times and events." parallel and simul- With a better understanding of our purposes, and a more in- 1 impossibility. It is telligent recognition of our needs as a Nation, it is not to be opoly, unfair trade assumed that there will be prolonged failure to bring legislative ie. There are those and judicial action into closer harmony. Means must be found to 639 The Annual Message to the Congress adapt our legal forms and our judicial interpretation to the actual present national needs of the largest progressive democracy in the modern world. That thought leads to a consideration of world problems. To go no further back than the beginning of this century, men and women everywhere were seeking conditions of life very different from those which were customary before modern invention and modern industry and modern communications had come into being. The World War, for all of its tragedy, encouraged these demands, and stimulated action to fulfill these new desires. Many national Governments seemed unable adequately to re- spond; and, often with the improvident assent of the masses of the people themselves, new forms of government were set up with oligarchy taking the place of democracy. In oligarchies, milita- rism has leapt forward, while in those Nations which have re- tained democracy, militarism has waned. I have recently visited three of our sister Republics in South America. The very cordial receptions with which I was greeted were in tribute to democracy. To me the outstanding observation of that visit was that the masses of the peoples of all the Americas are convinced that the democratic form of government can be made to succeed and do not wish to substitute for it any other form of government. They believe that democracies are best able to cope with the changing problems of modern civilization within themselves, and that democracies are best able to maintain peace among themselves. The Inter-American Conference, operating on these funda- mental principles of democracy, did much to assure peace in this Hemisphere. Existing peace machinery was improved. New in- struments to maintain peace and eliminate causes of war were adopted. Wider protection of the interests of the American Re- publics in the event of war outside the Western Hemisphere was provided. Respect for, and observance of, international treaties and international law were strengthened. Principles of liberal trade policies, as effective aids to the maintenance of peace, were reaffirmed. The intellectual and cultural relationships among 640 gress The Annual Message to the Congress etation to the actual American Republics were broadened as a part of the general ssive democracy in peace program. In a world unhappily thinking in terms of war, the representa- world problems. To tives of twenty-one Nations sat around a table, in an atmosphere S century, men and of complete confidence and understanding, sincerely discussing of life very different measures for maintaining peace. Here was a great and a perma- dern invention and nent achievement directly affecting the lives and security of the ons had come into two hundred and fifty million human beings who dwell in this i, encouraged these Western Hemisphere. Here was an example which must have a se new desires. wholesome effect upon the rest of the world. le adequately to re- In a very real sense, the Conference in Buenos Aires sent forth nt of the masses of a message on behalf of all the democracies of the world to those nt were set up with Nations which live otherwise. Because such other Governments oligarchies, milita- are perhaps more spectacular, it was high time for democracy to ons which have re- assert itself. Because all of us believe that our democratic form of govern- Republics in South ment can cope adequately with modern problems as they arise, hich I was greeted it is patriotic as well as logical for us to prove that we can meet anding observation new national needs with new laws consistent with an historic of all the Americas constitutional framework clearly intended to receive liberal and çovernment can be not narrow interpretation. te for it any other The United States of America, within itself, must continue the racies are best able task of making democracy succeed. civilization within In that task the Legislative branch of our Government will, I am to maintain peace confident, continue to meet the demands of democracy whether they relate to the curbing of abuses, the extension of help to those g on these funda- who need help, or the better balancing of our interdependent issure peace in this economies. mproved. New in- So, too, the Executive branch of the Government must move auses of war were forward in this task, and, at the same time, provide better man- the American Re- agement for administrative action of all kinds. n Hemisphere was The Judicial branch also is asked by the people to do its part ernational treaties in making democracy successful. We do not ask the Courts to call inciples of liberal non-existent powers into being, but we have a right to expect nce of peace, were that conceded powers or those legitimately implied shall be made lationships among effective instruments for the common good. 641 The Annual Budget Message The process of our democracy must not be imperiled by the denial of essential powers of free government. Your task and mine is not ending with the end of the depres- sion. The people of the United States have made it clear that they expect us to continue our active efforts in behalf of their peaceful advancement. In that spirit of endeavor and service I greet the 75th Congress at the beginning of this auspicious New Year. 236 (The Annual Budget Message to the Con- gress. January 7, 1937 To the Congress of the United States:' PURSUANT to provisions of law I transmit herewith the Budget of the United States Government for the fiscal year ending June 30, 1938, together with this message, which is a part thereof. The esti- mates have been developed after careful analysis of the revenues, obligations, and reasonable needs of the Government, and I rec- ommend appropriations for the purposes specifically detailed herein. PART I The programs inaugurated during the last four years to combat the depression and to initiate many needed reforms have cost large sums of money, but the benefits obtained from them are far outweighing all their costs. We shall soon be reaping the full benefits of those programs and shall have at the same time a bal- anced Budget that will also include provision for reduction of the public debt. The fiscal plans of the Federal Government for these four years have been formulated with two objectives in mind. Our first was to restore a successful èconomic life to the country, by providing greater employment and purchasing power for the people, by stimulating a more balanced use of our productive capacity, and 642 1 (Annual Message to the Congress. January 3, 1934 Mr. President, Mr. Speaker, Senators and Representatives in Congress: COME before you at the opening of the Regular Session of the I 73d Congress, not to make requests for special or detailed items of legislation; I come, rather, to counsel with you, who, like myself, have been selected to carry out a mandate of the whole people, in order that without partisanship you and I may cooperate to continue the restoration of our national well- being and, equally important, to build on the ruins of the past a new structure designed better to meet the present problems of modern civilization. Such a structure includes not only the relations of industry and agriculture and finance to each other but also the effect which all of these three have on our individual citizens and on the whole people as a Nation. Now that we are definitely in the process of recovery, lines have been rightly drawn between those to whom this recovery means a return to old methods- and the number of these people is small and those for whom recovery means a reform of many old methods, a permanent readjustment of many of our ways of thinking and therefore of many of our social and economic ar- rangements. Civilization cannot go back; civilization must not stand still. We have undertaken new methods. It is our task to perfect, to improve, to alter when necessary, but in all cases to go forward. To consolidate what we are doing, to make our economic and so- cial structure capable of dealing with modern life is the joint task of the legislative, the judicial, and the executive branches of the national Government. Without regard to party, the overwhelming majority of our people seek a greater opportunity for humanity to prosper and find happiness. They recognize that human welfare has not in- creased and does not increase through mere materialism and lux- 8 S. Annual Message ury, but that it does progress through integrity, unselfishness, re- sponsibility and justice. tives in Congress: In the past few months, as a result of our action, we have de- manded of many citizens that they surrender certain licenses to lar Session of the do as they please in their business relationships; but we have ecial or detailed asked this in exchange for the protection which the State can give 1 with you, who, against exploitation by their fellow men or by combinations of 1 mandate of the their fellow men. nship you and I I congratulate this Congress upon the courage, the earnestness ir national well- and the efficiency with which you met the crisis at the Special Ses- ins of the past a sion. It was your fine understanding of the national problem that ent problems of furnished the example which the country has so splendidly fol- lowed. I venture to say that the task confronting the First Con- ons of industry gress of 1789 was no greater than your own. the effect which I shall not attempt to set forth either the many phases of the nd on the whole crisis which we experienced last March, or the many measures which you and I undertook during the Special Session that we recovery, lines might initiate recovery and reform. m this recovery It is sufficient that I should speak in broad terms of the results of these people of our common counsel. reform of many The credit of the Government has been fortified by drastic re- / of our ways of duction in the cost of its permanent agencies through the Econ- id economic ar- omy Act. With the twofold purpose of strengthening the whole finan- not stand still. cial structure and of arriving eventually at a medium of exchange k to perfect, to which over the years will have less variable purchasing and debt- $ to go forward. paying power for our people than that of the past, I have used conomic and so- the authority granted me to purchase all American-produced gold and silver and to buy additional gold in the world markets. Care- is the joint task ful investigation and constant study prove that in the matter of branches of the foreign exchange rates certain of our sister Nations find them- selves so handicapped by internal and other conditions that they najority of our feel unable at this time to enter into stabilization discussion to prosper and based on permanent and world-wide objectives. fare has not in- The overwhelming majority of the banks, both national and rialism and lux- State, which reopened last spring, are in sound condition and 9 Annual Message have been brought within the protection of Fedetal insurance. In the case of those banks which were not permitted to reopen, nearly six hundred million dollars of frozen deposits are being restored to the depositors through the assistance of the national Government. We have made great strides toward the objectives of the Na- tional Industrial Recovery Act, for not only have several millions of our unemployed been restored to work, but industry is organ- izing itself with a greater understanding that reasonable profits can be earned while at the same time protection can be assured to guarantee to labor adequate pay and proper conditions of work. Child labor is abolished. Uniform standards of hours and wages apply today to 95 percent of industrial employment within the field of the National Industrial Recovery Act. We seek the definite end of preventing combinations in furtherance of mo- nopoly and in restraint of trade, while at the same time we seek to prevent ruinous rivalries within industrial groups which in many cases resemble the gang wars of the underworld and in which the real victim in every case is the public itself. Under the authority of this Congress, we have brought the component parts of each industry together around a common table, just as we have brought problems affecting labor to a com- mon meeting ground. Though the machinery, hurriedly devised, may need readjustment from time to time, nevertheless I think you will agree with me that we have created a permanent feature of our modernized industrial structure and that it will continue under the supervision but not the arbitrary dictation of Govern- ment itself. You recognized last spring that the most serious part of the debt burden affected those who stood in danger of losing their farms and their homes. I am glad to tell you that refinancing in both of these cases is proceeding with good success and in all probability within the financial limits set by the Congress. But agriculture had suffered from more than-its debts. Actual experience with the operation of the Agricultural Adjustment Act leads to my belief that thus far the experiment of seeking a 10 Annual Message deral insurance. balance between production and consumption is aucceeding and litted to reopen, has made progress entirely in line with reasonable expectations posits are being toward the restoration of farm prices to parity. I continue in my of the national conviction that industrial progress and prosperity can only be at- tained by bringing the purchasing power of that portion of our tives of the Na- population which in one form or another is dependent upon agri- several millions culture up to a level which will restore a proper balance between idustry is organ- every section of the country and between every form of work. asonable profits In this field, through carefully planned flood control, power can be assured development and land-use policies in the Tennessee Valley and :r conditions of in other great watersheds, we are seeking the elimination of ds of hours and waste, the removal of poor lands from agriculture and the en- loyment within couragement of small local industries, thus furthering this prin- ct. We seek the ciple of a better balanced national life. We recognize the great therance of mo- ultimate cost of the application of this rounded policy to every ne time we seek part of the Union. Today we are creating heavy obligations to roups which in start the work because of the great unemployment needs of erworld and in the moment. I look forward, however, to the time in the not dis- itself. tant future, when annual appropriations, wholly covered by cur- ve brought the rent revenue, will enable the work to proceed under a national und a common plan. Such a national plan will, in a generation or two, return labor to a com- many times the money spent on it; more important, it will elimi- rriedly devised, nate the use of inefficient tools, conserve and increase natural re- rtheless I think sources, prevent waste, and enable millions of our people to take manent feature better advantage of the opportunities which God has given our it will continue country. tion of Govern- I cannot, unfortunately, present to you a picture of complete optimism regarding world affairs. ous part of the The delegation representing the United States has worked in of losing their close cooperation with the other American Republics assembled refinancing in at Montevideo to make that conference an outstanding success. cess and in all We have, I hope, made it clear to our neighbors that we seek. Congress. with them future avoidance of territorial expansion and of inter- S debts. Actual ference by one Nation in the internal affairs of another. Further- al Adjustment more, all of us are seeking the restoration of commerce in ways nt of seeking a which will preclude the building up of large favorable trade bal- Il Annual Message ances by any one Nation at the expense of trade debits on the part of other Nations. In other parts of the world, however, fear of immediate or fu- ture aggression and with it the spending of vast sums on arma- ment and the continued building up of defensive trade barriers prevent any great progress in peace or trade agreements. I have made it clear that the United States cannot take part in political arrangements in Europe but that we stand ready to cooperate at any time in practicable measures on a world basis looking to im- mediate reduction of armaments and the lowering of the barriers against commerce. I expect to report to you later in regard to debts owed the Gov- ernment and people of this country by the Governments and peoples of other countries. Several Nations, acknowledging the debt, have paid in small part; other Nations have failed to pay. One Nation - Finland - has paid the installments due this coun- try in full. Returning to home problems, we have been shocked by many notorious examples of injuries done our citizens by persons or groups who have been living off their neighbors by the use of methods either unethical or criminal. In the first category - a field which does not involve violations of the letter of our laws - practices have been brought to light which have shocked those who believed that we were in the past generation raising the ethical standards of business. They call for stringent preventive or regulatory measures. I am speaking of those individuals who have evaded the spirit and purpose of our tax laws, of those high officials of banks or corporations who have grown rich at the expense of their stockholders or the public, of those reckless speculators with their own or other people's money whose operations have injured the values of the farmers' crops and the savings of the poor. In the other category, crimes of organized banditry, cold- blooded shooting, lynching and kidnapping have threatened our security. These violations of ethics and these violations of law call on 12 Annual Message rade debits on the the strong arm of Government for their immediate suppression; they call also on the country for an aroused public opinion. £ immediate or fu- The adoption of the Twenty-first Amendment should give ma- ast sums on arma- terial aid to the elimination of those new forms of crime which sive trade barriers came from the illegal traffic in liquor. agreements. I have I shall continue to regard it as my duty to use whatever means te part in political may be necessary to supplement State, local and private agencies dy to cooperate at for the relief of suffering caused by unemployment. With respect asis looking to im- to this question, I have recognized the dangers inherent in the di- ing of the barriers rect giving of relief and have sought the means to provide not mere relief, but the opportunity for useful and remunerative :bts owed the Gov- work. We shall, in the process of recovery, seek to move as rapidly Governments and as possible from direct relief to publicly supported work and cknowledging the from that to the rapid restoration of private employment. have failed to pay. It is to the eternal credit of the American people that this tre- ents due this coun- mendous readjustment of our national life is being accomplished peacefully, without serious dislocation, with only a minimum of shocked by many injustice and with a great, willing spirit of cooperation through- ens by persons or out the country. ors by the use of Disorder is not an American habit. Self-help and self-control are the essence of the American tradition - not of necessity the involve violations form of that tradition, but its spirit. The program itself comes brought to light from the American people. e were in the past It is an integrated program, national in scope. Viewed in the ness. They call for large, it is designed to save from destruction and to keep for the I am speaking of future the genuinely important values created by modern soci- nd purpose of our ety. The vicious and wasteful parts of that society we could not orations who have save if we wished; they have chosen the way of self-destruction. or the public, of We would save useful mechanical invention, machine produc- er people's money tion, industrial efficiency, modern means of communication, he farmers' crops broad education. We would save and encourage the slowly grow- ing impulse among consumers to enter the industrial market 1 banditry, cold- place equipped with sufficient organization to insist upon fair ve threatened our prices and honest sales. But the unnecessary expansion of industrial plants, the waste ns of law call on of natural resources, the exploitation of the consumers of natural Secretary Woodin Resigns monopolies, the accumulation of stagnant surpluses, child labor, and the ruthless exploitation of all labor, the encouragement of speculation with other people's money. these were consumed in the fires that they themselves kindled; we must make sure that as we reconstruct our life there be no soil in which such weeds can grow again. We have plowed the furrow and planted the good seed; the hard beginning is over. If we would reap the full harvest, we must cultivate the soil where this good seed is sprouting and the plant is reaching up to mature growth. A final personal word. I know that each of you will appreciate that I am speaking no mere politeness when I assure you how much I value the fine relationship that we have shared during these months of hard and incessant work. Out of these friendly contacts we are, fortunately, building a strong and permanent tie between the legislative and executive branches of the Govern- ment. The letter of the Constitution wisely declared a separation, but the impulse of common purpose declares a union. In this spirit we join once more in serving the American people. 2 Secretary of the Treasury Woodin Resigns. January 1, 1934 The following correspondence was made public today at the White House: Tucson, Arizona, December 13, 1933 Dear Governor: It is with great regret that I am compelled to tender you my- resignation as Secretary of the Treasury, to take effect at your convenience any time before January first. The state of my health will not permit me to remain in this position. I cannot express what a wrench it is to me to leave your official 14 152. Annual Message ebt results from 152 The Annual Message to the Congress. These condi- en forced upon January 6, 1941 Id be far lower Mr. President, Mr. Speaker, Members of the Seventy-seventh Congress: during the past wed, as I hope ADDRESS you, the Members of the Seventy-seventh Con- then the com- I gress, at a moment unprecedented in the history of the become possi- Union. I use the word "unprecedented," because at no be restored. previous time has American security been as seriously ntained during threatened from without as it is today. difficult task - Since the permanent formation of our Government under iscal needs can the Constitution, in 1789, most of the periods of crisis in our history have related to our domestic affairs. Fortunately, only national pro- one of these - the four-year War Between the States-ever st of things to threatened our national unity. Today, thank God, one hundred and thirty million Americans, in forty-eight States, have for- with armament gotten points of the compass in our national unity. ry, turn of fate It is true that prior to 1914 the United States often had a peace-loving been disturbed by events in other Continents. We had even engaged in two wars with European nations and in a number ause we are a of undeclared wars in the West Indies, in the Mediterranean ) defend. The and in the Pacific for the maintenance of American rights and been set. for the principles of peaceful commerce. But in no case had been prepared a serious threat been raised against our national safety or our ts ahead. One continued independence. marker carries What I seek to convey is the historic truth that the United :nd our demo- States as a nation has at all times maintained clear, definite op- position, to any attempt to lock us in behind an ancient Chinese wall while the procession of civilization went past. Today, thinking of our children and of their children, we oppose en- forced isolation for ourselves or for any other part of the Americas. That determination of ours, extending over all these years, was proved, for example, during the quarter century of wars following the French Revolution. While the Napoleonic struggles did threaten interests of the 66₃ 152. Annual Message United States because of the French foothold in the West Indies and in Louisiana, and while we engaged in the War of 1812 to vindicate our right to peaceful trade, it is nevertheless clear that neither France nor Great Britain, nor any other nation, was aiming at domination of the whole world. In like fashion from 1815 to 1914 -ninety-nine years-no single war in Europe or in Asia constituted a real threat against our future or against the future of any other American nation. Except in the Maximilian interlude in Mexico, no foreign power sought to establish itself in this Hemisphere; and the strength of the British fleet in the Atlantic has been a friendly strength. It is still a friendly strength. Even when the World War broke out in 1914, it seemed to contain only small threat of danger to our own American future. But, as time went on, the American people began to visualize what the downfall of democratic nations might mean to our own democracy. We need not overemphasize imperfections in the Peace of Versailles. We need not harp on failure of the democracies to deal with problems of world reconstruction. We should remem- ber that the Peace of 1919 was far less unjust than the kind of "pacification" which began even before Munich, and which is being carried on under the new order of tyranny that seeks to spread over every continent today. The American people have unalterably set their faces against that tyranny. Every realist knows that the democratic way of life is at this moment being directly assailed in every part of the world-as- sailed either by arms, or by secret spreading of poisonous propaganda by those who seek to destroy unity and promote discord in nations that are still at peace. During-sixteen long months this assault has blotted out the whole pattern of democratic life in an appalling number of in- dependent nations, great and small. The assailants are still on the march, threatening other nations, great and small. Therefore, as your President, performing my constitutional duty to "give to the Congress information of the state of the 664 152. Annual Message e West Indies Union," I find it, unhappily, necessary to report that the future War of 1812 and the safety of our country and of our democracy are over- ertheless clear whelmingly involved in events far beyond our borders. other nation, Armed defense of democratic existence is now being gallantly waged in four continents. If that defense fails, all the population and all the resources of Europe, Asia, Africa and Australasia will ne years-no threat against be dominated by the conquerors. Let us remember that the total erican nation. of those populations and their resources in those four continents o, no foreign greatly exceeds the sum total of the population and the re- lere; and the sources of the whole of the Western Hemisphere - many times en a friendly over. In times like these it is immature - and incidentally, un- it seemed to true - for anybody to brag that an unprepared America, single- erican future. handed, and with one hand tied behind its back, can hold off n to visualize the whole world. mean to our No realistic American can expect from a dictator's peace in- ternational generosity, or return of true independence, or world the Peace of disarmament, or freedom of expression, or freedom of religion - emocracies to or even good business. ould remem- Such a peace would bring no security for us or for our neigh- 1 the kind of bors. "Those, who would give up essential liberty to purchase a 1, and which little temporary safety, deserve neither liberty nor safety." ny that seeks As a nation, we may take pride in the fact that we are soft- hearted; but we cannot afford to be soft-headed. rican people We must always be wary of those who with sounding brass inny. life is at this and a tinkling cymbal preach the "ism". of appeasement. ie world as- We must especially beware of that small group of selfish men of poisonous who would clip the wings of the American eagle in order to feather their own nests. and promote I have recently pointed out how quickly the tempo of modern otted out the warfare could- bring into our very midst the physical attack umber of in- which we must eventually expect if the dictator nations win this S are still on war. all. There is much loose talk of our immunity from immediate constitutional and direct invasion from across the seas. Obviously, as long as state of the the British Navy retains its power, no such danger exists. Even 665 152. Annual Message if there were no British Navy, it is not probable that any enemy would be stupid enough to attack us by landing troops in the United States from across thousands of miles of ocean, until it had acquired strategic bases from which to operate. But we learn much from the lessons of the past years in Eu- rope - particularly the lesson of Norway, whose essential sea- ports were captured by treachèry and surprise built up over a series of years. The first phase of the invasion of this Hemisphere would not be the landing of regular troops. The necessary strategic points would be occupied by secret agents and their dupes-and great numbers of them are already here, and in Latin America. As long as the aggressor nations maintain the offensive, they - not we - will choose the time and the place and the method of their attack. That is why the future of all the American Republics is today in serious danger. That is why this Annual Message to the Congress is unique in our history. That is why every member of the Executive Branch of the Government and every member of the Congress faces great re- sponsibility and great accountability. The need of the moment is that our actions and our policy should be devoted primarily - almost exclusively - to meeting this foreign peril. For all our domestic problems are now a part of the great emergency. Just as our national policy in internal affairs has been based upon a decent respect for the rights and the dignity of all our fellow men within our gates, so our national policy in foreign affairs has been based on a decent respect for the rights and dignity of all nations, large and small. And the justice of morality must and will win in the end. Our national policy is this: First, by an impressive expression of the public will and with- out regard to partisanship, we are committed to all-inclusive national defense. 666 152. Annual Message hat any enemy Second, by an impressive expression of the public will and troops in the without regard to partisanship, we are committed to full sup- ocean, until it port of all those resolute peoples, everywhere, who are resisting e. aggression and are thereby keeping war away from our Hemi- t years in Eu- sphere. By this support, we express our determination that the essential sea- ilt up over a democratic cause shall prevail; and we strengthen the defense and the security of our own nation. ere would not Third, by an impressive expression of the public will and with- rategic points out regard to partisanship, we are committed to the proposition es-and great that principles of morality and considerations for our own se- America. curity will never permit us to acquiesce in a peace dictated by ensive, they - aggressors and sponsored by appeasers. We know that enduring I the method peace cannot be bought at the cost of other people's freedom. In the recent national election there was no substantial dif- iblics is today ference between the two great parties in respect to that national policy. No issue was fought out on this line before the Ameri- ess is unique can electorate. Today it is abundantly evident that American citizens everywhere are demanding and supporting speedy and ranch of the complete action in recognition of obvious danger. aces great re- Therefore, the immediate need is a swift and driving increase in our armament production. d our policy Leaders of industry and labor have responded to our summons. - to meeting Goals of speed have been set. In some cases these goals are being e now a part reached ahead of time; in some cases we are on schedule; in other cases there are slight but not serious delays; and in some $ been based cases - and I am sorry to say very important cases - we are all ty of all our concerned by the slowness of the accomplishment of our plans. y in foreign The Army and Navy, however, have made substantial progress = rights and during the past year. Actual experience is improving and speed- e of morality ing up our methods of production with every passing day. And today's best is not good enough for tomorrow. I am not satisfied with the progress thus far made. The men ill and with- in charge of the program represent the best in training, in ability, all-inclusive and in patriotism. They are not satisfied with the progress thus far made. None of us will be satisfied until the job is done. 667 152. Annual Message No matter whether the original goal was set too high or too low, our objective is quicker and better results. To give you two illustrations: We are behind schedule in turning out finished airplanes; we are working day and night to solve the innumerable problems and to catch up. We are ahead of schedule in building warships but we are working to get even further ahead of that schedule. To change a whole nation from a basis of peacetime produc- tion of implements of peace to a basis of wartime production of implements of war is no small task. And the greatest difficulty comes at the beginning of the program, when new tools, new plant facilities, new assembly lines, and new ship ways must first be constructed before the actual matériel begins to flow steadily and speedily from them. The Congress, of course, must rightly keep itself informed at all times of the progress of the program. However, there is certain information, as the Congress itself will readily recognize, which, in the interests of our own security and those of the nations that we are supporting, must of needs be kept in con- fidence. New circumstances are constantly begetting new needs for our safety. I shall ask this Congress for greatly increased new appropriations and authorizations to carry on what we have begun. I also ask this Congress for authority and for funds sufficient to manufacture additional munitions and war supplies of many kinds, to be turned over to those nations which are now in actual war with aggressor nations. Our most useful- and immediate role is to act as an arsenal for them as well as for ourselves. They do not need man power, but they do need billions of dollars worth of the weapons of defense. The time is near when they will not be able to pay for them all in ready cash. We cannot, and we will not, tell them that 668 152. Annual Message 00 high or too they must surrender, merely because of present inability to pay for the weapons which we know they must have. I do not recommend that we make them a loan of dollars with hed airplanes; which to pay for these weapons - a loan to be repaid in dollars. rable problems I recommend that we make it possible for those nations to continue to obtain war materials in the United States, fitting ps but we are their orders into our own program. Nearly all their matériel ile. would, if the time ever came, be useful for our own defense. etime produc- Taking counsel of expert military and naval authorities, con- production of sidering what is best for our own security, we are free to decide how much should be kept here and how much should be sent atest difficulty abroad to our friends who by their determined and heroic re- ew tools, new sistance are giving us time in which to make ready our own ways must first defense. D flow steadily For what we send abroad, we shall be repaid within a reason- able time following the close of hostilities, in similar materials, self informed or, at our option, in other goods of many kinds, which they ever, there is can produce and which we need. dily recognize, Let us say to the démocracies: "We Americans are vitally con- those of the cerned in your defense of freedom. We are putting forth our kept in con- energies, our resources and our organizing powers to give you the strength to regain and maintain a free world. We shall send ew needs for you, in ever-increasing numbers, ships, planes, tanks, guns. This ncreased new is our purpose and our pledge." that we have In fulfillment of this purpose we will not be intimidated by the threats of dictators that they will regard as a breach of inter- nds sufficient national law or as an act of war our aid to the democracies plies of many which dare to resist their aggression. Such aid is not an act of are now in war, even if a dictator should unilaterally proclaim it so to be. When the dictators, if the dictators, are ready to make war as an arsenal upon us, they will not wait for an act of war on our part. They man power, did not wait for Norway or Belgium or the Netherlands to com- weapons of mit an act of war. Their only interest is in a new one-way international law, pay for them which lacks mutuality in its observance, and, therefore, becomes Il them that an instrument of oppression. 669 152. Annual Message The happiness of future generations of Americans may well depend upon how effective and how immediate we can make our aid felt. No one can tell the exact character of the emer- gency situations that we may be called upon to meet. The Nation's hands must not be tied when the Nation's life is in danger. We must all prepare to make the sacrifices that the emer- gency - almost as serious as war itself - demands. Whatever stands in the way of speed and efficiency in defense preparations must give way to the national need. A free nation has the right to expect full cooperation from all groups. A free nation has the right to look to the leaders of business, of labor, and of agriculture to take the lead in stimu- lating effort, not among other groups but within their own groups. The best way of dealing with the few slackers or trouble makers in our midst is, first, to shame them by patriotic example, and, if that fails, to use the sovereignty of Government to save Government. As men do not live by bread alone, they do not fight by arma- ments alone. Those who man our defenses, and those behind them who build our defenses, must have the stamina and the courage which come from unshakable belief in the manner of life which they are defending. The mighty action that we are calling for cannot be based on a disregard of all things worth fighting for. The Nation takes great satisfaction and much strength from the things which have been done to make its people conscious of their individual stake in the preservation of democratic life in America. Those things have toughened the fibre of our people, have renewed their faith and strengthened their devo- tion to the institutions we make ready to protect. Certainly this is no time for any of us to stop thinking about the social and economic problems which are the root cause of the social revolution which is today a supreme factor in the world. 670 152.Annual Message cans may well For there is nothing mysterious about the foundations of a we can make healthy and strong democracy. The basic things expected by our of the emer- people of their political and economic systems are simple. They o meet. The are: on's life is in Equality of opportunity for youth and for others. Jobs for those who can work. nat the emer- Security for those who need it. ds. Whatever The ending of special privilege for the few. : preparations The preservation of civil liberties for all. The enjoyment of the fruits of scientific progress in a wider beration from and constantly rising standard of living. the leaders of These are the simple, basic things that must never be lost lead in stimu- sight of in the turmoil and unbelievable complexity of our in their own modern world. The inner and abiding strength of our economic and political systems is dependent upon the degree to which rs or trouble they fulfill these expectations. iotic example, Many subjects connected with our social economy call for im- ment to save mediate improvement. As examples: fight by arma- We should bring more citizens under the coverage of old-age those behind pensions and unemployment insurance. mina and the We should widen the opportunities for adequate medical he manner of care. 1 that we are We should plan a better system by which persons deserving things worth or needing gainful employment may obtain it. I have called for personal sacrifice. I am assured of the will- strength from ingness of almost all Americans to respond to that call. ple conscious A part of the sacrifice means the payment of more money in emocratic life taxes. In my Budget Message I shall recommend that a greater fibre of our portion of this great defense program be paid for from taxation d their devo- than we are paying today. No person should try, or be allowed, to get rich out of this program; and the principle of tax pay- inking about ments in accordance with ability to pay should be. constantly root cause of before our eyes to guide our legislation. factor in the If the Congress maintains these principles, the voters, putting patriotism ahead of pocketbooks, will give you their applause. 671 152. Annual Message In the future days, which we seek to make secure, we look forward to a world founded upon four essential human freedoms. The first is freedom of speech and expression - everywhere in the world. The second is freedom of every person to worship God ir his own way everywhere in the world. The third is freedom from want which, translated into world terms, means economic understandings which will secure to every nation a healthy peacetime life for its inhabitants - everywhere in the world. The fourth is freedom from fear-which, translated into world terms, means a world-wide reduction of armaments to such a point and in such a thorough fashion that no nation will be in a position to commit an act of physical aggression against any neighbor-anywhere in the world. That is no vision of a distant millennium. It is a definite basis for a kind of world attainable in our own time and generation. That kind of world is the very antithesis of the so-called new order of tyranny which the dictators seek to create with the crash of a bomb. To that new order we oppose the greater conception - the moral order. A good society is able to face schemes of world domination and foreign revolutions alike without fear. Since the beginning of our American history, we have been engaged in change - in a perpetual peaceful revolution - a revo- lution which goes on steadily, quietly adjusting itself to changing conditions - - without the concentration camp or the quick-lime in the ditch. The world order which we seek is the cooperation of free countries, working together in a friendly, civilized society. This nation has placed its destiny in the hands and heads and hearts of its millions of free men and women; and its faith in freedom under the guidance of God. Freedom means the su- premacy of human rights everywhere. Our support goes to those who struggle to gain those rights or keep them. Our strength is our unity of purpose. To that high concept there can be no end save victory. 672 he Union 126-A. Radio Address on the State of the Union peace cannot exist beginning of the organization of world peace. This organization must be the fulfillment of the promise for which men have in a national elec- fought and died in this war. It must be the justification of all the sacrifices that have been made - of all the dreadful misery that rences were made this world has endured. he Congress, with We Americans of today, together with our allies, are making t this Administra- history - and I hope it will be better history than ever has been her harmoniously made before. We pray that we may be worthy of the unlimited opportuni- disagreements be- ties that God has given us. as there have been alf. NOTE: At 10 P.M. of the same day a message on the State of the Union ne people in this he sent the foregoing State of the - and this evening I am taking the Union message to the Congress, the opportunity to repeat to you some p dissension, and President made a radio address em- parts of that message." The Presi- at they appear to bodying significant excerpts from dent then repeated in summary form his message (see Item 126-A, this vol- certain portions of the message. is respect is elo- ume). He commenced his radio ad- Toward the close of his radio ad- of America - all dress with the following statement: dress, the President added several ent in this war. "Today, in pursuance of my Consti- paragraphs which did not appear in tutional duty, I sent to the Congress his message to the Congress. iary have worked Senate and of the our relationships of meeting some 126-A. Radio Address Summarizing State of that opportunity the Union Message. January 6, 1945 and we must ap- T ODAY, in pursuance of my Constitutional duty, I sent to the r of achievement Congress a message on the State of the Union - and this evening I am taking the opportunity to repeat to you some parts of that the Nazi-Fascist message. This war must be waged - it is being waged - with the great- le forces of retri- est and most persistent intensity. Everything we are and have is of imperialistic at stake. Everything we are, and have, will be given. We have no question of the ultimate victory. We have no ques- e the substantial tion of the cost. Our losses will be heavy. 507 126-A. Radio Address on the State of the Union But - we and our Allies will go on fighting together to ultimate total victory. We have seen a year marked, on the whole, by substantial progress toward victory, even though the year ended with a set- back for our arms, when the Germans launched a ferocious counterattack into Luxembourg and Belgium with the obvious objective of cutting our line in the center. Our men have fought with indescribable and unforgettable gallantry under most difficult conditions. The high tide of this German attack was reached two days after Christmas. Since then we have reassumed the offensive, rescued the isolated garrison at Bastogne, and forced a German withdrawal along the whole line of the salient. The speed with which we recovered from this savage attack was possible primarily because we have one Supreme Com- mander in complete control of all the Allied armies in France. General Eisenhower has faced this period of trial with admirable calm and resolution and with steadily increasing success. He has my complete confidence. Further desperate attempts may well be made to break our lines, to slow our progress. We must never make the mistake of assuming that the Germans are beaten until the last Nazi has surrendered. And I would express a most serious warning against the poi- sonous effects of enemy propaganda. The wedge that the Germans attempted to drive in Western Europe was less dangerous in terms of winning the war than the wedges which they are continually attempting to drive between ourselves and our Allies. Every little rumor which is intended to weaken our faith in our Allies is like an actual enemy agent in our midst - seeking to sabotage our war effort. There are, here and there, evil and baseless rumors against the Russians - rumors against the Brit- ish - rumors against our own American commanders in the field. When you examine these rumors closely, you will observe 5.08 Union 126-A. Radio Address on the State of the Union gether to ultimate that every one of them bears the same trademark - "Made in Germany." e, by substantial We must resist this propaganda - we must destroy it - with ended with a set- the same strength and the same determination that our fighting ched a ferocious men are displaying as they resist and destroy the panzer divisions. with the obvious In all of the far-flung operations of our own armed forces - on land, and sea, and in the air - the final job, the toughest nd unforgettable job, has been performed by the average, easy-going, hard-fight- ing young American who carries the weight of battle on his own eached two days shoulders. ed the offensive, It is to him that we and all future generations of Americans forced a German must pay grateful tribute. But - it is of small satisfaction to him to know that monu- his savage attack ments will be raised to him in the future. He wants, he needs, Supreme Com- and he is entitled to insist upon, our full and active support - rmies in France. now. 1 with admirable Although unprecedented production figures have made pos- g success. He has sible our victories, we shall have to increase our goals in certain weapons even more. de to break our Our armed forces in combat have steadily increased their ex- ake the mistake penditure of ammunition. As we continue the decisive phases of til the last Nazi this war, the munitions that we expend will mount day by day. I shall not go into the details of war production and the re- against the poi- quirements of war materials. They are contained in the message that I sent today, and I hope that many of you will have an op- drive in Western portunity to read that in full. the war than the But there is one very human need that I do want to mention. :o drive between We need twenty thousand more trained nurses for our Army and Navy. ken our faith in Those nurses that we have are rendering gallant service to our midst - seeking sick and wounded men, but they have been called upon to do 1 there, evil and more than their share. More than a thousand nurses are now against the Brit- hospitalized themselves - and part of this is due to overwork. At iders in the field. Army hospitals in the United States there is only one nurse to ou will observe twenty-six beds, instead of one to fifteen beds, as there should be. 509 126-A. Radio Address on the State of the Union Since volunteering has not produced the number of nurses required, I asked the Congress in my message to amend the Selective Service Act to provide for the induction of registered nurses into the armed forces. The need is too pressing to await the outcome of further efforts at recruiting. However, I urge registered nurses through- out the country to volunteer immediately for this great service. The only way to meet our increased needs for more weapons and new weapons is for every American now engaged in war work to stay on his war job - for additional American civilians, men and women not now engaged in essential work, to go out and get a war job. Workers who are released because their war production is cut back should get another job where war pro- duction is being increased. This is no time to quit or change to less essential jobs. There is an old and true saying that the Lord hates a quitter. And this Nation must pay for all those who leave their essential jobs - for all those who lay down on their essential jobs for non- essential reasons. And that payment must be made with the life's blood of our sons. Last year, after much consideration, I recommended that the Congress adopt a National Service Act as the most efficient and democratic way of insuring full production for our war require- ments. This recommendation was not adopted. I have again called upon the Congress today to enact this measure for the total mobilization of all our human resources - men and women - for the prosecution of the war. I urge that this be done at the earliest possible moment. It is not too late in the war. In fact, bitter experience has shown that, in this kind of mechanized warfare where new weap- ons are constantly being created by our enemies and by our- selves, the closer we come to the end of the war, the more press- ing becomes the need for sustained war production with which to deliver the final blow to the enemy. There are three basic arguments for a National Service Law. First - it would assure that we have the right numbers of workers in the right places at the right times. 510 e Union 126-A. Radio Address on the State of the Union number of nurses Second - it would provide supreme proof to all our fighting ge to amend the men that we are giving them what they are entitled to, which is tion of registered nothing less than our total effort. And - third- - it would be the final, unequivocal answer to tcome of further the hopes of the Nazis and the Japanese that we may become d nurses through- half-hearted about this war, and that they can get from us a this great service. negotiated peace. or more weapons National service legislation would be used only to the extent engaged in war absolutely required by military necessities. In fact, experience in merican civilians, Great Britain and in other Nations at war indicates that use of L work, to go out the compulsory powers of national service is necessary only in because their war rare instances. ) where war pro- National service would provide against loss of retirement and quit or change to seniority rights and benefits. It would not mean reduction in wages. d hates a quitter. The contribution of our workers in this war has been beyond ve their essential measure. We must now build on the foundations that have tial jobs for non- already been laid, and supplement the measures now in opera- de with the life's tion, in order to guarantee the production that may be necessary in the critical period that lies ahead. mended that the The Secretary of War and the Secretary of the Navy have writ- nost efficient and ten me a letter in which, speaking of present war needs, they our war require- said: lay to enact this "In our considered judgment, which is supported by General Marshall human resources and Admiral King, this requires total mobilization of our manpower by the passage of a national war service law. The armed forces need this war. I urge that legislation to hasten the day of final victory, and to keep to a minimum the cost in lives." r experience has where new weap- That is the testimony of those best qualified to know the situ- ies and by our- ation which confronts us. , the more press- Pending action by the Congress on the broader aspects of na- on with which to tional service, I have recommended that the Congress immedi- ately enact legislation which will be effective in using the services nal Service Law. of the four million men now classified as 4-F in whatever capacity ght numbers of is best for the war effort. In the field of foreign policy, we propose to stand together 5 1 1 126-A. Radio Address on the State of the Union with the United Nations not for the war alone but for the vic- tory for which the war is fought. It is not only a common danger which unites us, but a com- mon hope. Ours is an association not of governments but of peoples - and the peoples' hope is peace. Here, as in England; in England, as in Russia; in Russia, as in China; in France, and through the continent of Europe, and throughout the world; wherever men love freedom, the hope and purpose of the people are for peace - a peace that is durable and secure. It will not be easy to create this peoples' peace. We have seen already, in areas liberated from the Nazi and the Fascist tyranny, what problems peace will bring. And we delude ourselves if we attempt to believe wishfully that all these problems can be solved overnight. The firm foundation can be built - and it will be built. But the continuance and assurance of a living peace must, in the long run, be the work of the people themselves. We ourselves, like all peoples who have gone through the difficult processes of liberation and adjustment, know of our own experience how great the difficulties can be. We know that they are not difficulties peculiar to any continent or any Nation. Our own Revolutionary War left behind it, in the words of one American historian, "an eddy of lawlessness and disregard of human life." There were separatist movements of one kind or another in Vermont, Pennsylvania, Virginia, Tennessee, Ken- tucky, and Maine. There were insurrections, open or threatened, in Massachusetts and New Hampshire. We worked out for our- selves these difficulties - as the peoples of the liberated areas of Europe, faced with complex problems of adjustment, will work out their difficulties for themselves. Peace can be made and kept only by the united determination of free and peace-loving peoples who are willing to work together - willing to help one another - willing to respect and tolerate and try to understand one another's opinions and feelings. In the future world the misuse of power, as implied in the term "power politics," must not be a controlling factor in inter- 5 12 e Union 126-A. Radio Address on the State of the Union e but for the vic- national relations. That is the heart of the principles to which we have subscribed. In a democratic world, as in a democratic Na- es us, but a com- tion, power must be linked with responsibility, and obliged to ernments but of defend and justify itself within the framework of the general e, as in England; good. a; in France, and In our disillusionment after the last war we gave up the hope ;hout the world; of achieving a better peace because we had not the courage to ose of the people fulfill our responsibilities in an admittedly imperfect world. ure. We must not let that happen again, or we shall follow the same ce. We have seen tragic road again - the road to a third world war. e Fascist tyranny, We can fulfill our responsibilities for maintaining the security e ourselves if we of our own country only by exercising our power and our in- roblems can be fluence to achieve the principles in which we believe, and for which we have fought. ill be built. But It is true that the statement of principles in the Atlantic must, in the long Charter does not provide rules of easy application to each and every one of the tangled situations in this war-torn world. But one through the it is a good and a useful thing - it is an essential thing - to it, know of our have principles toward which we can aim. e. We know that And we shall not hesitate to use our influence - and to use it t or any Nation. now - to secure so far as is humanly possible the fulfillment of the words of one the principles of the Atlantic Charter. We have not shrunk from nd disregard of the military responsibilities brought on by this war. We cannot of one kind or and will not shrink from the political responsibilities which fol- Tennessee, Ken- low in the wake of battle. n or threatened, To do this we must be on our guard not to exploit and exag- ked out for our- gerate the differences between us and our Allies, particularly berated areas of with reference to the peoples who have been liberated from ment, will work Fascist tyranny. That is not the way to secure a better settle- ment of those differences, or to secure international machinery d determination which can rectify mistakes which may be made. O work together I must admit concern about many situations - the Greek ect and tolerate and Polish for example. But those situations are not as easy or nd feelings. as simple to deal with as some spokesmen, whose sincerity I do implied in the not question, would have us believe. We have obligations, not factor in inter- necessarily legal, to the exiled governments, to the underground 513 126-A. Radio Address on the State of the Union leaders, and to our major Allies who came much nearer the shadows than we did. We and our Allies have declared that it is our purpose to respect the right of all peoples to choose the form of govern- ment under which they will live and to see sovereign rights and self-government restored to those who have been forcibly de- prived of them. But with internal dissension, with many citizens of liberated countries still prisoners of war or forced to labor in Germany, it is difficult to guess the kind of self-government the people really want. During the interim period, until conditions permit a genuine expression of the peoples' will, we and our Allies have a duty, which we cannot ignore, to use our influence to the end that no temporary or provisional authorities in the liberated countries block the eventual exercise of the peoples' right freely to choose the government and institutions under which, as free men, they are to live. It is our purpose to help the peace-loving peoples of Europe to live together as good neighbors, to recognize their common interests, and not to nurse their traditional grievances against one another. But we must not permit the many specific and immediate problems of adjustment connected with the liberation of Europe to delay the establishment of permanent machinery for the maintenance of peace. Under the threat of a common danger, the United Nations joined together in war to preserve their independence and their freedom. They must now join together to make secure the independence and freedom of all peace-loving states, so that never again shall tyranny be able to divide and conquer. International peace and well-being, like national peace and well-being, require constant alertness, continuing cooperation, and organized effort. International peace and well-being, like national peace and well-being, can be secured only through institutions capable of life and growth. 514 le Union 126-A. Radio Address on the State of the Union much nearer the One of the most heartening events of the year in the inter- national field has been the renaissance of the French people and is our purpose to the return of the French Nation to the ranks of the United Na- : form of govern- tions. Far from having been crushed by the terror of Nazi dom- vereign rights and ination, the French people have emerged with stronger faith been forcibly de- than ever in the destiny of their country and in the soundness of with many citizens the democratic ideals to which the French Nation has con- forced to labor in tributed so greatly. f-government the Today, French armies are again on the German frontier and are again fighting shoulder to shoulder with our sons. permit a genuine Since our landings in Africa, we have placed in French hands llies have a duty, all the arms and material of war which our resources and the o the end that no military situation permitted. And I am glad to say that we are berated countries now about to equip large new French forces with the most t freely to choose modern weapons for combat duty. as free men, they I am clear in my own mind that, as an essential factor in the maintenance of world peace in the future, we must have eoples of Europe universal military training after this war, and I shall send a ze their common special message to the Congress on this subject. rievances against An enduring peace cannot be achieved without a strong America - strong in the social and economic sense as well as in and immediate the military sense. ration of Europe I have already set forth what I consider to be an American achinery for the Economic Bill of Rights, and the most fundamental of these common danger, is the "right to a useful and remunerative job in the industries O preserve their or shops or farms or mines of the Nation." OW join together In turn, others of the economic rights of American citizen- £ all peace-loving ship such as the right to a decent home, to a good education, to le to divide and good medical care, to social security, to reasonable farm income, will, if fulfilled, make major contributions to achieving adequate tional peace and levels of employment. ing cooperation, In the message that I sent to the Congress today I discussed the general approach to the program that we have in mind for ional peace and the provision of close to sixty million jobs. tions capable of Although we must plan now for our postwar economy, and enact the necessary legislation, and set up the appropriate agen- 515 126-A. Radio Address on the State of the Union cies for reconversion from war to peace, and lay the foundations for that transition period - all of which we are now doing - it is obviously impossible for us to do anything which might possibly hinder the production for war at this time, when our men are fighting on the frontiers of Germany and dropping bombs on the war industries of Japan. In these days, our thoughts and our hopes and our prayers are with our sons and brothers, our loved ones who are far from home. We can and we will give them all the support of which this great Nation is capable. But - no matter how well they may be equipped with weapons and munitions - their magnificent fight will have been in vain if this war should end in the breaking of the unity of the United Nations. We need the continuing friendship of our Allies in this war. Indeed, that need is a matter of life and death. And we shall need that friendship in the peace. I quote from an editorial in the Stars and Stripes, our soldiers' own newspaper in Europe: "For the holy love of God let's listen to the dead. Let's learn from the living. Let's join ranks against the foe. The bugles of battle are heard again above the bickering." That is the demand of our fighting men. We cannot fail to heed it. This new year of 1945 can be the greatest year of achieve- ment in human history. Nineteen forty-five can see the final ending of the Nazi-Fascist reign of terror in Europe. Nineteen forty-five can see the closing in of the forces of retribution about the center of the malignant power of impe- rialistic Japan. Most important of all, 1945 can, and must, see the substantial beginning of the organization of world peace - for we all know what such an organization means in terms of security, and human rights, and religious freedom. We Americans of today, together with our Allies, are making 5 1 6 e Union 127. The Need for National Service Legislation y the foundations history - and I hope it will be better history than ever has been e now doing - it made before. ng which might We pray that we may be worthy of the unlimited opportuni- $ time, when our ties that God has given us. ny and dropping and our prayers who are far from 127 The President Reemphasizes the Need for ort of which this National Service Legislation. vell they may be January 17, 1945 magnificent fight in the breaking Dear Congressman May: IN MY RECENT message on the State of the Union, I pointed out llies in this war. the urgent need of a national service law, and recommended that, h. And we shall pending action by the Congress on the broader aspects of na- tional service, the Congress immediately enact legislation which bes, our soldiers' will be effective in using the 4,000,000 men now classified in IV-F in whatever capacity is best for the war effort. lead. Let's learn The urgent need of this legislation has not lessened but has The bugles of increased since the sending of my Message. It is true that there has been a trend toward increased place- e cannot fail to ment of manpower in the last two weeks, but there is danger that this trend, which was unquestionably due to the belief that Con- ear of achieve- gress contemplated prompt action, will be reversed by reports now current in the press that Congressional action is likely to be the Nazi-Fascist delayed. I am familiar with the provisions of H. R. 1119, on which £ the forces of hearings are now being held before your Committee. While this ower of impe- bill is not a complete national service law, it will go far to secure the effective employment in the war effort of all registrants the substantial under the Selective Service Law between the ages of 18 and 45. or we all know While there may be some differences of opinion on the details ity, and human of the bill, prompt action now is much more important in the war effort than the perfecting of detail. es, are making As the United Nations enter upon a truly total offense against 517 Jan. 26 / Administration of Ronald Reagan, 1982 Address Before a Joint Session of the Congress Reporting on the State of the Union January 26, 1982 Mr. Speaker, Mr. President, distinguished Seldom have the stakes been higher for Members of the Congress, honored guests, America. What we do and say here will and fellow citizens: make all the difference to autoworkers in Today marks my first State of the Union Detroit, lumberjacks in the Northwest, address to you, a constitutional duty as old steelworkers in Steubenville who are in the as our Republic itself. unemployment lines; to black teenagers in President Washington began this tradition Newark and Chicago; to hard-pressed farm- in 1790 after reminding the Nation that the ers and small businessmen; and to millions destiny of self-government and the "preser- of everyday Americans who harbor the vation of the sacred fire of liberty" is "final- simple wish of a safe and financially secure ly staked on the experiment entrusted to future for their children. To understand the the hands of the American people." For our state of the Union, we must look not only at friends in the press, who place a high pre- where we are and where we're going but mium on accuracy, let me say: I did not where we've been. The situation at this actually hear George Washington say that. time last year was truly ominous. [Laughter] But it is a matter of historic The last decade has seen a series of reces- record. [Laughter] sions. There was a recession in 1970, in But from this podium, Winston Churchill 1974, and again in the spring of 1980. Each asked the free world to stand together time, unemployment increased and infla- against the onslaught of aggression. Frank- tion soon turned up again. We coined the lin Delano Roosevelt spoke of a day of word stagflation" to describe this. infamy and summoned a nation to arms. Government's response to these reces- Douglas MacArthur made an unforgettable sions was to pump up the money supply farewell to a country he loved and served and increase spending. In the last 6 months so well. Dwight Eisenhower reminded us of 1980, as an example, the money supply that peace was purchased only at the price increased at the fastest rate in postwar his- of strength. And John F. Kennedy spoke of tory-13 percent. Inflation remained in the burden and glory that is freedom. double digits, and government spending in- When I visited this Chamber last year as creased at an annual rate of 17 percent. a newcomer to Washington, critical of past Interest rates reached a staggering 21½ per- policies which I believed had failed, I pro- cent. There were 8 million unemployed. posed a new spirit of partnership between Late in 1981 we sank into the present this Congress and this administration and recession, largely because continued high between Washington and our State and interest rates hurt the auto industry and local governments. In forging this new part- construction. And there was a drop in pro- nership for America, we could achieve the ductivity, and the already high unemploy- oldest hopes of our Republic-prosperity for ment increased. our nation, peace for the world, and the This time, however, things are different. blessings of individual liberty for our chil- We have an economic program in place, dren and, someday, for all of humanity. completely different from the artificial It's my duty to report to you tonight on quick fixes of the past. It calls for a reduc- the progress that we have made in our rela- tion of the rate of increase in government tions with other nations, on the foundation spending, and already that rate has been we've carefully laid for our economic recov- cut nearly in half. But reduced spending ery, and finally, on a bold and spirited ini- alone isn't enough. We've just implemented tiative that I believe can change the face of the first and smallest phase of a 3-year tax- American government and make it again rate reduction designed to stimulate the the servant of the people. economy and create jobs. Already interest 72 Administration of Ronald Reagan, 1982 / Jan. 26 n the rates are down to 15% percent, but they Together we've begun to mobilize the must still go lower. Inflation is down from private sector, not to duplicate wasteful and 12.4 percent to 8.9, and for the month of discredited government programs, but to December it was running at an annualized bring thousands of Americans into a volun- rate of 5.2 percent. If we had not acted as teer effort to help solve many of America's en higher for we did, things would be far worse for all social problems. ay here will Americans than they are today. Inflation, Together we've begun to restore that toworkers in taxes, and interest rates would all be higher. margin of military safety that ensures Northwest, A year ago, Americans' faith in their gov- peace. Our country's uniform is being worn tho are in the ernmental process was steadily declining. once again with pride. Six out of 10 Americans were saying they teenagers in Together we have made a New Begin- pressed farm- were pessimistic about their future. A new ning, but we have only begun. kind of defeatism was heard. Some said our id to millions No one pretends that the way ahead will harbor the domestic problems were uncontrollable, be easy. In my Inaugural Address last year, that we had to learn to live with this seem- ncially secure I warned that the "ills we suffer have come aderstand the ingly endless cycle of high inflation and upon us over several decades. They will not ok not only at high unemployment. go away in days, weeks, or months, but they There were also pessimistic predictions 're going but will go away because we as Americans about the relationship between our adminis- ation at this have the capacity now, as we've had it in tration and this Congress. It was said we us. the past, to do whatever needs to be done could never work together. Well, those pre- eries of reces- to preserve this last and greatest bastion of dictions were wrong. The record is clear, in 1970, in freedom." and I believe that history will remember of 1980. Each this as an era of American renewal, remem- The economy will face difficult moments ed and infla- in the months ahead. But the program for ber this administration as an administration le coined the economic recovery that is in place will pull of change, and remember this Congress as a this. the economy out of its slump and put us on Congress of destiny. these reces- Together we not only cut the increase in the road to prosperity and stable growth by noney supply government spending nearly in half, we the latter half of this-year. And that is why I last 6 months brought about the largest tax reductions can report to you tonight that in the near money supply future the state of the Union and the econo- and the most sweeping changes in our tax 1 postwar his- structure since the beginning of this cen- my will be better-much better-if we remained in tury. And because we indexed future taxes summon the strength to continue on the t spending in- to the rate of inflation, we took away gov- course that we've charted. f 17 percent. ernment's built-in profit on inflation and its And so, the question: If the fundamentals ering 21½ per- hidden incentive to grow larger at the ex- are in place, what now? Well, two things. employed. pense of American workers. First, we must understand what's happen- ) the present Together, after 50 years of taking power ing at the moment to the economy. Our ontinued high away from the hands of the people in their current problems are not the product of the industry and States and local communities, we have start- recovery program that's only just now get- 1 drop in pro- ed returning power and resources to them. ting underway, as some would have you be- gh unemploy- Together, we have cut the growth of new lieve; they are the inheritance of decades of Federal regulations nearly in half. In 1981 tax and tax and spend and spend. are different. there were 23,000 fewer pages in the Fed- Second, because our economic problems ram in place, eral Register, which lists new regulations, are deeply rooted and will not respond to the artificial than there were in 1980. By deregulating quick political fixes, we must stick to our Is for a reduc- oil we've come closer to achieving energy carefully integrated plan for recovery. That n government independence and helped bring down the plan is based on four commonsense funda- rate has been cost of gasoline and heating fuel. mentals: continued reduction of the growth iced spending Together, we have created an effective in Federal spending; preserving the individ- implemented Federal strike force to combat waste and ual and business tax reductions that will f a 3-year tax- fraud in government. In just 6 months it stimulate saving and investment; removing stimulate the has saved the taxpayers more than $2 bil- unnecessary Federal regulations to spark ready interest lion, and it's only getting started. productivity; and maintaining a healthy 73 Jan. 26 / Administration of Ronald Reagan, 1982 dollar and a stable monetary policy, the I have no intention of retreating from our latter a responsibility of the Federal Re- basic program of tax relief. I promise to serve System. bring the American people-to bring their The only alternative being offered to this tax rates down and to keep them down, to economic program is a return to the poli- provide them incentives to rebuild our cies that gave us a trillion-dollar debt, economy, to save, to invest in America's runaway inflation, runaway interest rates future. I will stand by my word. Tonight and unemployment. The doubters would I'm urging the American people: Seize have us turn back the clock with tax in- these new opportunities to produce, to save, creases that would offset the personal tax- to invest, and together we'll make this rate reductions already passed by this Con- gress. Raise present taxes to cut future defi- economy a mighty engine of freedom, hope, and prosperity again. cits, they tell us. Well, I don't believe we should buy that argument. Now, the budget deficit this year will There are too many imponderables for exceed our earlier expectations. The reces- sion did that. It lowered revenues and in- anyone to predict deficits or surpluses sev- eral years ahead with any degree of accura- creased costs. To some extent, we're also cy. The budget in place, when I took office, victims of our own success. We've brought had been projected as balanced. It turned inflation down faster than we thought we out to have one of the biggest deficits in could, and in doing this, we've deprived history. Another example of the impondera- government of those hidden revenues that bles that can make deficit projections highly occur when inflation pushes people into questionable-a change of only one per- higher income tax brackets. And the contin- centage point in unemployment can alter a ued high interest rates last year cost the deficit up or down by some $25 billion. government about $5 billion more than an- As it now stands, our forecast, which ticipated. we're required by law to make, will show We must cut out more nonessential gov- major deficits starting at less than a hun- ernment spending and rout out more waste, dred billion dollars and declining, but still and we will continue our efforts to reduce too high. More important, we're making the number of employees in the Federal progress with the three keys to reducing work force by 75,000. deficits: economic growth, lower interest The budget plan I submit to you on Feb- rates, and spending control. The policies we ruary 8th will realize major savings by dis- have in place will reduce the deficit stead- mantling the Departments of Energy and ily, surely, and in time, completely. Education and by eliminating ineffective Higher taxes would not mean lower defi- subsidies for business. We'll continue to re- cits. If they did, how would we explain that direct our resources to our two highest tax revenues more than doubled just since budget priorities-a strong national defense 1976; yet in that same 6-year period we ran to keep America free and at peace and a the largest series of deficits in our history. reliable safety net of social programs for In 1980 tax revenues increased by $54 bil- those who have contributed and those who lion, and in 1980 we had one of our alltime are in need. biggest deficits. Raising taxes won't balance Contrary to some of the wild charges you the budget; it will encourage more govern- may have heard, this administration has not ment spending and less private investment. and will not turn its back on America's el- Raising taxes will slow economic growth, derly or America's poor. Under the new reduce production, and destroy future jobs, budget, funding for social insurance pro- making it more difficult for those without grams will be more than double the amount jobs to find them and more likely that those spent only 6 years ago. But it would be who now have jobs could lose them. So, I foolish to pretend that these or any pro- will not ask you to try to balance the grams cannot be made more efficient and budget on the backs of the American tax- economical. payers. The entitlement programs that make up I will seek no tax increases this year, and our safety net for the truly needy have 74 Administration of Ronald Reagan, 1982 Jan. 26 ing from our worthy goals and many deserving recipi- security, go a long way toward bringing I promise to ents. We will protect them. But there's only Federal spending under control. o bring their one way to see to it that these programs But don't be fooled by those who pro- em down, to really help those whom they were designed claim that spending cuts will deprive the rebuild our to help. And that is to bring their spiraling elderly, the needy, and the helpless. The in America's costs under control. Federal Government will still subsidize 95 ord. Tonight Today we face the absurd situation of a million meals every day. That's one out of eople: Seize Federal budget with three-quarters of its seven of all the meals served in America. duce, to save, expenditures routinely referred to as "un- Head Start, senior nutrition programs, and 1 make this controllable." And a large part of this goes child welfare programs will not be cut from of freedom, to entitlement programs. the levels we proposed last year. More than Committee after committee of this Con- one-half billion dollars has been proposed is year will gress has heard witness after witness de- for minority business assistance. And re- S. The reces- scribe many of these programs as poorly search at the National Institute of Health nues and in- administered and rife with waste and fraud. will be increased by over $100 million. we're also Virtually every American who shops in a While meeting all these needs, we intend to e've brought local supermarket is aware of the daily plug unwarranted tax loopholes and thought we abuses that take place in the food stamp strengthen the law which requires all large ve deprived program, which has grown by 16,000 per- corporations to pay a minimum tax. evenues that cent in the last 15 years. Another example I am confident the economic program people into is Medicare and Medicaid-programs with we've put into operation will protect the 1 the contin- worthy goals but whose costs have in- ear cost the creased from 11.2 billion to almost 60 bil- needy while it triggers a recovery that will benefit all Americans. It will stimulate the ore than an- lion, more than 5 times as much, in just 10 economy, result in increased savings and years. Waste and fraud are serious problems. provide capital for expansion, mortgages for ssential gov- Back in 1980 Federal investigators testified homebuilding, and jobs for the unem- more waste, before one of your committees that "cor- ployed. :S to reduce the Federal ruption has permeated virtually every area -Now that the essentials of that program of the Medicare and Medicaid health care are- in place, our next major undertaking industry." One official said many of the must be a program-just as bold, just as you on Feb- people who are cheating the system were innovative-to make government again ac- ings by dis- "very confident that nothing was going to countable to the people, to make our Energy and happen to them." Well, something is going system of federalism work again. ineffective to happen. Not only the taxpayers are de- Our citizens feel they've lost control of tinue to re- frauded; the people with real dependency even the most basic decisions made about wo highest on these programs are deprived of what the essential services of government, such nal defense they need, because available resources are as schools, welfare, roads, and even garbage eace and a going not to the needy, but to the greedy. collection. And they're right. A maze of in-, ograms for The time has come to control the uncon- terlocking jurisdictions and levels of govern- those who trollable. In August we made a start. I ment confronts average citizens in trying to signed a bill to reduce the growth of these solve even the simplest of problems. They charges you programs by $44 billion over the next 3 don't know where to turn for answers, who ion has not years while at the same time preserving to hold accountable, who to praise, who to nerica's el- essential services for the truly needy. Short- blame, who to vote for or against. The main r the new ly you will receive from me a message on reason for this is the overpowering growth rance pro- further reforms we intend to install-some of Federal grants-in-aid programs during the amount new, but others long recommended by your the past few decades. would be own congressional committees. I ask you to In 1960 the Federal Government had 132 r any pro- help make these savings for the American categorical grant programs, costing $7 bil- ficient and taxpayer. lion. When I took office, there were ap- The savings we propose in entitlement proximately 500, costing nearly a hundred t make up programs will total some $63 billion over 4 billion dollars-13 programs for energy, 36 eedy have years and will, without affecting social for pollution control, 66 for social services, 75 Jan. 26 / Administration of Ronald Reagan, 1982 90 for education. And here in the Congress, use their trust fund money to pay for the it takes at least 166 committees just to try grants. Or to the extent they choose to to keep track of them. forgo the Federal grant programs, they can You know and I know that neither the use their trust fund money on their own for President nor the Congress can properly those or other purposes. There will be a oversee this jungle of grants-in-aid; indeed, mandatory pass-through of part of these the growth of these grants has led to the funds to local governments. distortion in the vital functions of govern- By 1988 the States will be in complete ment. As one Democratic Governor put it control of over 40 Federal grant programs. recently: The National Government should The trust fund will start to phase out, even- be worrying about "arms control, not pot- tually to disappear, and the excise taxes will holes." be turned over to the States. They can then The growth in these Federal programs preserve, lower, or raise taxes on their own has-in the words of one intergovernmental commission-made the Federal Govern- and fund and manage these programs as they see fit. ment "more pervasive, more intrusive, more unmanageable, more ineffective and In a single stroke we will be accom- costly, and above all, more plishing a realignment that will end cum- [un]accountable." Let's solve this problem bersome administration and spiraling costs with a single, bold stroke: the return of at the Federal level while we ensure these some $47 billion in Federal programs to programs will be more responsive to both State and local government, together with the people they're meant to help and the the means to finance them and a transition people who pay for them. period of nearly 10 years to avoid unneces- Hand in hand with this program to sary disruption. strengthen the discretion and flexibility of I will shortly send this Congress a mes- State and local governments, we're propos- sage describing this program. I want to em- ing legislation for an experimental effort to phasize, however, that its full details will improve and develop our depressed urban have been worked out only after close con- areas in the 1980's and '90's. This legislation sultation with congressional, State, and local will permit States and localities to apply to officials. the Federal Government for designation as Starting in fiscal 1984, the Federal Gov- urban enterprise zones. A broad range of ernment will assume full responsibility for special economic incentives in the zones the cost of the rapidly growing Medicaid will help attract new business, new jobs, program to go along with its existing re- new opportunity to America's inner cities sponsibility for Medicare. As part of a finan- and rural towns. Some will say our mission cially equal swap, the States will simulta- is to save free enterprise. Well, I say we neously take full responsibility for Aid to must free enterprise so that together we Families with Dependent Children and can save America. food stamps. This will make welfare less Some will also say our States and local costly and more responsive to genuine communities are not up to the challenge of need, because it'll be designed and adminis- a new and creative partnership. Well, that tered closer to the grassroots and the might have been true 20 years ago before people it serves. reforms like reapportionment and the In 1984 the Federal Government will Voting Rights Act, the 10-year extension of apply the full proceeds from certain excise which I strongly support. It's no longer true taxes to a grassroots trust fund that will today. This administration has faith in State belong in fair shares to the 50 States. The and local governments and the constitution- total amount flowing into this fund will be al balance envisioned by the Founding Fa- $28 billion a year. Over the next 4 years the thers. We also believe in the integrity, de- States can use this money in either of two cency, and sound, good sense of grassroots ways. If they want to continue receiving Americans. Federal grants in such areas as transporta- Our faith in the American people is re- tion, education, and social services, they can flected in another major endeavor. Our pri- 76 Administration of Ronald Reagan, 1982 / Jan. 26 vate sector initiatives task force is seeking foreign policy, I should say, a subject I to pay for the out successful community models of school, intend to address in detail in the near they choose to church, business, union, foundation, and future. A few words, however, are in order grams, they can civic programs that help community needs. on the progress we've made over the past on their own for Such groups are almost invariably far more year, reestablishing respect for our nation There will be a efficient than government in running social around the globe and some of the chal- part of these programs. lenges and goals that we will approach in We're not asking them to replace discard- the year ahead. be in complete ed and often discredited government pro- At Ottawa and Cancún, I met with lead- grant programs. grams dollar for dollar, service for service. ers of the major industrial powers and de- phase out, even- We just want to help them perform the veloping nations. Now, some of those I met excise taxes will good works they choose and help others to with were a little surprised that I didn't They can then profit by their example. Three hundred and apologize for America's wealth. Instead, I es on their own eighty-five thousand corporations and pri- spoke of the strength of the free market- se programs as vate organizations are already working on place system and how that system could social programs ranging from drug rehabili- help them realize their aspirations for eco- will be accom- tation to job training, and thousands more nomic development and political freedom. I will end cum- Americans have written us asking how they believe lasting friendships were made, and 1 spiraling costs can help. The volunteer spirit is still alive the foundation was laid for future coopera- ve ensure these and well in America. tion. ponsive to both Our nation's long journey towards civil In the vital region of the Caribbean 0 help and the rights for all our citizens-once a source of Basin, we're developing a program of aid, discord, now a source of pride-must trade, and investment incentives to pro- continue with no backsliding or slowing is program to mote self-sustaining growth and a better, down. We must and shall see that those nd flexibility of more secure life for our neighbors to the basic laws that guarantee equal rights are S, we're propos- south. Toward those who would export ter- mental effort to preserved and, when necessary, strength- rorism and subversion in the Caribbean and ened. lepressed urban elsewhere, especially Cuba and Libya, we Our concern for equal rights for women This legislation will act with firmness. is firm and unshakable. We launched a new ties to apply to Task Force on Legal Equity for Women and Our foreign policy is a policy of strength, r designation as a Fifty States Project that will examine fairness, and balance. By restoring Ameri- broad range of State laws for discriminatory language. And ca's military credibility, by pursuing peace S in the zones for the first time in our history, a woman at the negotiating table wherever both sides ness, new jobs, sits on the highest court in the land. are willing to sit down in good faith, and by :a's inner cities So, too, the problem of crime-one as real regaining the respect of America's allies say our mission and deadly serious as any in America today. and adversaries alike, we have strengthened Well, I say we It demands that we seek transformation of our country's position as a force for peace at together we our legal system, which overly protects the and progress in the world. rights of criminals while it leaves society When action is called for, we're taking it. tates and local and the innocent victims of crime without Our sanctions against the military dictator- he challenge of justice. ship that has attempted to crush human ship. Well, that We look forward to the enactment of a rights in Poland-and against the Soviet ears ago before responsible clean air act to increase jobs regime behind that military dictatorship- ent and the while continuing to improve the quality of clearly demonstrated to the world that ar extension of our air. We're encouraged by the bipartisan America will not conduct "business as no longer true initiative of the House and are hopeful of usual" with the forces of oppression. If the as faith in State further progress as the Senate continues its events in Poland continue to deteriorate, he constitution- deliberations. further measures will follow. : Founding Fa- So far, I've concentrated largely, now, on Now, let me also note that private Ameri- e integrity, de- domestic matters. To view the state of the can groups have taken the lead in making se of grassroots Union in perspective, we must not ignore January 30th a day of solidarity with the the rest of the world. There isn't time to- people of Poland. So, too, the European n people is re- night for a lengthy treatment of social-or Parliament has called for March 21st to be eavor. Our pri- 77 Jan. 26 / Administration of Ronald Reagan, 1982 an international day of support for Afghani- keep the peace. We will also keep our free- stan. Well, I urge all peace-loving peoples dom. to join together on those days, to raise their We have made pledges of a new frank- voices, to speak and pray for freedom. ness in our public statements and world- Meanwhile, we're working for reduction wide broadcasts. In the face of a climate of of arms and military activities, as I an- falsehood and misinformation, we've prom- nounced in my address to the Nation last ised the world a season of truth-the truth November 18th. We have proposed to the of our great civilized ideas: individual liber- Soviet Union a far-reaching agenda for ty, representative government, the rule of mutual reduction of military forces and law under God. We've never needed walls have already initiated negotiations with or minefields or barbed wire to keep our them in Geneva on intermediate-range nu- people in. Nor do we declare martial law to clear forces. In those talks it is essential that keep our people from voting for the kind of we negotiate from a position of strength. government they want. There must be a real incentive for the Sovi- Yes, we have our problems; yes, we're in ets to take these talks seriously. This re- a time of recession. And it's true, there's no quires that we rebuild our defenses. In the last decade, while we sought the quick fix, as I said, to instantly end the moderation of Soviet power through a proc- tragic pain of unemployment. But we will ess of restraint and accommodation, the So- end it. The process has already begun, and viets engaged in an unrelenting buildup of we'll see its effect as the year goes on. their military forces. The protection of our We speak with pride and admiration of national security has required that we un- that little band of Americans who overcame dertake a substantial program to enhance insuperable odds to set this nation on our military forces. course 200 years ago. But our glory didn't We have not neglected to strengthen our end with them. Americans ever since have traditional alliances in Europe and Asia, or emulated their deeds. to develop key relationships with our part- We don't have to turn to our history ners in the Middle East and other countries. books for heroes. They're all around us. Building a more peaceful world requires a One who sits among you here tonight epito- sound strategy and the national resolve to mized that heroism at the end of the long- back it up. When radical forces threaten est imprisonment ever inflicted on men of our friends, when economic misfortune cre- our Armed Forces. Who will ever forget ates conditions of instability, when strategi- that night when we waited for television to cally vital parts of the world fall under the bring us the scene of that first plane land- shadow of Soviet power, our response can ing at Clark Field in the Philippines, bring- make the difference between peaceful ing our POW's home? The plane door change or disorder and violence. That's why opened and Jeremiah Denton came slowly we've laid such stress not only on our own down the ramp. He caught sight of our flag, defense but on our vital foreign assistance saluted it, said, "God bless America," and program. Your recent passage of the For- then thanked us for bringing him home. eign Assistance Act sent a signal to the Just 2 weeks ago, in the midst of a terri- world that America will not shrink from ble tragedy on the Potomac, we saw again making the investments necessary for both the spirit of American heroism at its peace and security. Our foreign policy must finest-the heroism of dedicated rescue be rooted in realism, not naivete or self- workers saving crash victims from icy delusion. waters. And we saw the heroism of one of A recognition of what the Soviet empire our young government employees, Lenny is about is the starting point. Winston Skutnik, who, when he saw a woman lose Churchill, in negotiating with the Soviets, her grip on the helicopter line, dived into observed that they respect only strength the water and dragged her to safety. and resolve in their dealings with other na- And then there are countless, quiet, ev- tions. That's why we've moved to recon- eryday heroes of American life-parents struct our national defenses. We intend to who sacrifice long and hard so their chil- 78 Administration of Ronald Reagan, 1982 / Jan. 27 so keep our free- dren will know a better life than they've eration." known; church and civic volunteers who Well, that President and that Congress of a new frank- help to feed, clothe, nurse, and teach the did not fail the American people. Together ents and world- needy; millions who've made our nation they weathered the storm and preserved e of a climate of and our nation's destiny so very special- the Union. Let it be said of us that we, too, on, we've prom- unsung heroes who may not have realized did not fail; that we, too, worked together truth-the truth their own dreams themselves but then who to bring America through difficult times. individual liber- reinvest those dreams in their children. Let us so conduct ourselves that two cen- ent, the rule of Don't let anyone tell you that America's turies from now, another Congress and an- er needed walls best days are behind her, that the American other President, meeting in this Chamber ire to keep our spirit has been vanquished. We've seen it as we are meeting, will speak of us with e martial law to pride, saying that we met the test and pre- triumph too often in our lives to stop be- g for the kind of served for them in their day the sacred lieving in it now. flame of liberty-this last, best hope of man A hundred and twenty years ago, the on Earth. ns; yes, we're in greatest of all our Presidents delivered his true, there's no God bless you, and thank you. second State of the Union message in this stantly end the Chamber. "We cannot escape history," nt. But we will Note: The President spoke at 9 p.m. in the Abraham Lincoln warned. "We of this Con- ady begun, and House Chamber at the Capitol. He was in- gress and this administration will be re- troduced by Thomas P. O'Neill, Jr., Speaker r goes on. I admiration of membered in spite of ourselves." The "trial of the House of Representatives. The ad- through which we pass will light us down, dress was broadcast live on nationwide who overcame radio and television. this nation on in honor or dishonor, to the latest [last] gen- ur glory didn't ever since have to our history Message to the Senate Transmitting a Protocol to the North Atlantic all around us. Treaty e tonight epito- nd of the long- January 26, 1982 ted on men of ill ever forget To the Senate of the United States: security, are historic developments and a or television to With a view to receiving the advice and source of inspiration in these troubled rst plane land- consent of the Senate to ratification, I trans- times. Spain's strategic location, and human ippines, bring- and material resources, will make a major mit herewith a certified copy of a protocol e plane door contribution to the security of the Alliance. to the North Atlantic Treaty on the acces- a came slowly Accordingly, I urge that the Senate give sion of Spain, signed in Brussels on Decem- ght of our flag, early and favorable consideration to this ber 10, 1981 on behalf of the United States America," and protocol. g him home. and the other parties to the North Atlantic idst of a terri- Treaty. I transmit also for the information RONALD REAGAN of the Senate the report made to me by the we saw again The White House, roism at its Secretary of State regarding this matter. January 26, 1982. cated rescue Spain's rededication to the values and ns from icy purposes underlying the North Atlantic Note: The text of the message was released ism of one of Treaty, and her decision to seek full part- by the Office of the Press Secretary on Jan- oyees, Lenny nership in the effort to maintain Western uary 27. 1 woman lose e, dived into afety. SS, quiet, ev- life-parents so their chil- 79