, 1921-12-06

improved methods OF collection. by
YOUR sustainment OF the rigid econo
mics already inaugurated, with hoped
for extention OF these economies and
added ef~ficlencies in administration. ]
believe further reductions may be en-.
acted and hindering burdens abolish
ed.
BUDGET SYSTEM TO
AID IN SOLUTIONS.
In these urgent economies we shall
be immensely assisted by the budget
system for which you made provisions
in the extraordinary session. The
first budget Is before Its prepa'
ration Is a signal achievement and the
perfection OF the system. n thing I'M
possible in the few months available
for its initial trial. VIII mark its en-
actment as the beginning Of the great
est reformation In governmental prac-
tees since the beginning Of h re
public.
There is pending n grant Of author
ity to the authoritative branch OF the
government for the funding and set
Element OF our vast foreign loans
growing out OF our grant OF war
credits. With the hands of the execu-
tive branch held impotent to deal
with these debts. we are hindering
urgent REIMBURSEMENT mong our debt
ors and accomplishing nothing for
ourselves. I think It is fair for the
congress to assume that the executive
branch OF the government would adopt
no major policy in dealing with these
matters. which would conflict with the
purpose of congress in authorizing
the loans. certainly not without asking
congressional approval but there are
minor problems incident to prudent
loan transactions and the safeguard
ing OF our interests which can not
even be attempted without this au-
thorisation. It will be helpful to our
selves. and It will improve conditions
among our, debtors. II funding and the
settlement of defaultcd interest may
be negotiated.
MERCHANT MARINE
PROBLEM DISCUSSED.
h previous congress. deeply con.
cerned in behalf of our merchant ma
rine. in 1920 enacted the existing ship.
ping law. designed o the upbuild'
ing OF the American merchant ma
rine. Among other things we pro
vided. to encourage our shipping on
the worlds seas, your executive was
directed to give notice OF the termi
nation of all existing commercial
treaties IN order to admit of reduced
duties on imports carried in Amer
lean bottoms. During the life of the
act no executive has complied with
this order OF the congress. When the
present administration came, into re
sponsibiiity it began an early inquiry
into the failure to execute the ex
pressed purpose of the Jones act
Only n conclusion has been pos
sible. Frankly. members OF house
and senate. eager as I am to Join you
in the making OF an American mer
chant marine commensurate with oui
commerce, the announcement of oui
commercial treaties would involve us
in a chaos of trade relationships and
add indescribably to the confusion OF
the already ~disordered commercial
world Our power to do SO is not dis
pured but power and ships, without
comfy of relationship. will not give
Ut the expanded trade which is in
separately linked with a great mer
chant marine. Moreover the applied
reduction OF duty. for which the
treaty announcements were neces
sary, encouraged only the carrying
OF dutiable imports TO our shc-e5
while the tonnage which unfurls tbs
flag on the seas is both free and duti
able. and the cargoes which make
nation eminent in rad are outgo
ing. rather than incoming.
CONGRESS ASKED TO
DEFER TRADE PROBLEM.
1t is not my thought to lay the
problem in detail before you today. L
Is desired only to say to you that tbs
executive branch of the government
uninfluenced by the protest of ans
nation. for Tor has been made, 4:
well convinced that your proposal
highly intends and heartily supported
here. is so fraught' with difficultie.
and so marked by tendencies to dis
courage trade expansion, that / in
vite your tolerance of noncompliance
for a very few weeks. until n plar
may be presented which contemplates
no greater draft upon the public
treasury. and which. though yet toe
crude to offer it today. gives such
promise of expanding our .m%erchan'
marine that it will argue its w ap'
proval. It is enough TO say today
that we are SO possessed of ships, and
the American intention to establish a
merchant marine is SC unalterable.
that a plan of reimbursement, at no
other cost than is contemplated in
the sexisting act. will appeal to the
pride and the hope of all
the American people.
EARLY COMPLETION OF
TABIFF LAWS URGED.
There Is before ysu the completion