The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-07
President Harding Urges
Much New Legislation
Industrial Courts and Aid for Russia Among
Points Stressed in Address.

evitable divergence of opinion in
seeking the reelection, amelioration
and readjustment OF the burdens of
taxation.
Later on, when other prob
lens are solved. shall make some
recommendations about renewed
consideration of our tax program,
but for >the immediate time before
us we must be content with the
billion dollar reduction in the tax
draft upon the people, and urmrn-
ished irritations, banished uncer-
tainty and improved methods Of
collection. BY your sustainment of
the rigid economies already inaugu-
rated. with hoped-for extension Of
these economies and added efficien-
cies in administration. believe
further reductions may be enacted
and hindering burdens abolished.
|. In these urgent economies we
shall be immensely assisted by the
budget system for/which You made
provision in the extraordinary ses-
sion. The first budget is before
you. Its preparation is a signal
achievement and the perfection of
the system, thing impossible in
initial trial, will mark its enact
ment as the beginning Off the
greatest reformation in govern
mental practices since the begin
ming of the republic.
Debt Problem of United States.
There is pending a grant OF su-
thority to the administrative
branch of the government for the
FUNDING and settlement of our vas,
Foreign loans growing out of our
grant OF war credits. With the
hands of the executive branch held
lmpotent to deal with these debts
we are hindering urgent readiust-
ments among our debtors and ar
complfshing nothing for ourselves.
L think ii is fair for the Congress
10 assume that the executive branch
or the government would adopt no
major policy in dealing with these
matters which would conflict with
the purpose CT Congress in author
lzing the loans, certainly not with
out asking Congressional approval.
but there are minor problems Incl
dent to prudent loan transactions
and the safeguarding of our inter-
ests which cannot even be attempt
ed without this authorization. 1t
Will be helpful to ourselves and it
VIII improve conditions among our
debtors if funding and the settle
ment of defaulted interest may be
negotiated.
Merchant Marine Question.
The previous Congress, deeply
concerned in behalf OF our merchant
marine. in 1920 enacted the exist
ing shipping law. designed for the
upbuilding of the American mer-
chant marine. Among other things
provided to encourage our shipping
on the worlds seas, the executive
was directed to give notice of the
termination of all existing COM
mercial treaties in order to admit
OF reduced duties on imports car
ried in American bottoms. During
the life of the act no Executive has
complied with this order of the
Congress. When the present ad-
mlnlstration came into responsible
ity IT began an early inquiry into
the failure to execute the expressed
purpose of the Jones act. Only one
conclusion has been possible.
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 In
volve US in chaos of trade rela-
tionships and add indescribabl to
the confusion of the already disor-
| uered commercial world. Our power
TO do 10
and ships, without comfy of rela-
tionship. will not give us the ex-
panded trade which is inseparably
mixed with great merchant ma
rlne. Moreover. the applied reduce
ton of duty, for which the treaty
announcements were necessary, en-
| couraged only the carving of duti-
| able imports to our shores, while
the tonnage which unfurls the flag
on the seas is both free and duti-
able. and the cargoes which make
nation eminent in trade are out
going, rather than incoming.
VIII Hinder Expansion.
1t Is not my thought to Law the
problem in detail before YOU TODAY
1t is desired only to say to you that
the executive branch of the govern
ment. uninfluenced by the protest of
any nation, for none has been made.
is well convinced that your proposal,
highly intended and heartily SUD-
ported here, is so fraught with diff
culties and so marked by tendencies
TO discourage trade expansion. that
invite your tolerance of non-com-
pliance for very few weeks until a
plan may be presented which con-
templates no greater draft upon the
public treasury, and which, though
yet too crude to offer it today, gives
such promise of expanding our mer-
chant marine that it will argue its
own approval. 1t is enough to say
today that we are so possessed of
ships and the American intention to
establish a merchant marine Is so
unalterable. that a 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.
Asks Action on Tariff.
There is before you the completion
Of the enactment Of what has been
termed permanent" tariff law, the
word permanent" being used to dis
tinguish II from the emergency act
which the Congress expedited early
in the extraordinary session. and
which is the law today I can not
too strongly urge an early completion
of this necessary legislation 1t is
needed to stabilize our industry at
home it is essential to make more
definite our trade relations abroad.
More. it is vital to the preservation
Of many of our own industries which
contribute so notably to the very life
blood of our nation
There Is now and there ALWAYS will