The Mankato free press., 1921-12-09

encies in administration, l believe
further reductions may be enacted
and hindering burdens abolished.
Help From The Budget System
"ln tnese urgent economies we shall
be immensely assisted by the budget
system for which you made proYls
ion in the etxra ordinary session. The
first budget is before you. II is pre-
patton is a signal achievement and the
perfectiono OF the system thing I'M.
possible in the few months available
TOR its initial trial, will mark its
| enactment at the beginning OF the
greatest Teforation in governmental
practices since the beginning OF the
republic.
There is pending a grant Of au-
thority to the authoritative branch OF
the government for the funding ana
settlement of our vast foreign loans
growing out Of our grant Of war
credits. With the hands of the exc
cutive branch held impotent to deal
| with these debts, we are hindering
| re- adjustment among our debtors and
accomplishing nothing for ourselves
l thing 1t 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 pur-
pose of congress in authorizing the
| loans, certainly not without asking
congressional approval but there
are minor problems incident to pru-
| dent loan transactions and the safe
guarding OF our interests which cannot
| even be attempted without this au-
thorization. 1t will be helpful to
ourselves and it will improve condi
tons among our debtors if funding
and the settlement of defaulted in
terest may be negotiated.
| Part Two.
| The previous congress, deeply
| concerned in behalf of our merchant
marine, in 1920 enacted the existing
shipping law, designed for the up
building of the American merchant
marine. Among other things provid
ed to encourage our shipping on the
worlds seas, the executive was di-
rected to give notice of the termin-
alton of all existing commercial
| treaties in order to admit of reduced
duties on imports carried in Ameri
can bottoms. During the life of the
act no executive has complied with
this order of the congress. When the
present administration came into re
sponslbllity 1t began an early inquiry
| into the failure to execute the ex-
pressed purpose of the Jones act
Only one conclusion has been pos
sible. Frankly, members of house
and senate, eager, as l am to join you
in the making of an American mer-
chant marine commensurate with
our commerce, the announcement OF
| our commercial treaties would involve
us in chaos OF trade relationships
and add indescribably to the confusion
| of the already disordered CONNER
cial world. Our power to do so is
not disputed but power and shipS
without comfy Of relationship, win
not. give us the expanded trade which
is insperarably linked with a great
merchant marine. Moreover the ap-
piled reduction Of duty, for which
| the treaty announcements were nee
! essary, encouraged only the carrying
of dutiable imports to our shores,
while the tonnage which unfurls the
| flag on the seas Is both free and du-
table, and the cargoes which make a
nation eminent IN trade are outgoing
rather than incoming.
Plan To Expand Merchant Marine.
'It is not my thought to lay the
problem in detail before you today
1t is desired only to say to you that
the executive branch of the govern
ment, uninfuenced by the protest OF
any nation. for none has been made
Is well convinced that your proposal
highly intended and heartily support
ed here, is SO fraught with difficult
ties and SO marked by tendencies to
| discourage trade expansion, that ]
invite your tolerance Of non compli
ance for a very few weeks until a
plan may be presented which con
public treasury, and which, though
yet too crude to offer it today, gives
much promise of expanding our mer-
chant marine that il will argue its
approval. 1t is enough to say today
that we are so possessed of ships
and the American intention to es-
tablish merchant marine is so un-
aHerable, that plan of reimburse
ment, at no other cost than is con-
templated in the existing act, will
appeal to the pride and encourage the
hope of all the American people.
The Permanent Tariff Law.
| There is before you the compile
tion of the enactment Of what has
been termed a permanent tariff law
the word permanent" being used to
distinguish it from the mergency act
which the congress expedited early
in the extra ordinary session, and
which Is the law today. I cannot too
strongly urge an early completion
needed to stabilize our industry al
home; 1t is essential to make more
definite our trade relations abroad
More, 1t is vital to the preservation
of many of our own industries, which
contribute so notably to the very life
blood of our own nation.
| There Is now and there always
will be, storm Of conflicting opinion
about any revision. We cannot 20
| far wrong when we base our tariffs
on the policy Of preserving the pro
ductive activities, which enhance EN-
ployment and add to our national
| prosperity.
We Don't Seek Selfish Aioofness.
Again comes the reminder that we
must not be unmindful of world con
ditions, that peoples are struggling
| for industrial rehabilitation and that
we cannot dwell in industrial and
commercial exclusion and at the same
time do the just thing in aiding world
| recognition and adjustment. We
do not seek a selfish aloofness, and
we could not profit by it, were it pos
sible. We recognize the necessity OF
buying wherever we sell and, the per
manency of trade lies in it's accept
able exchanges. In our pursuit oi
markets we must give as well as re-
ceiVe. We cannot sell to others who
do not produce, nor can we buy un-
less we produce at home. Sensible
Of very obligation of humanity, com
| ond 6nonaa lir6od thou