Evening journal., 1921-12-06

journed. / am no unmindful OF
the very difficult tasks with which
you were called to deal and no
one can ignore tho insistent con-
ditions which during recent years
have called for the continued ana
almost exclusive attention of your
membership to public work. IL
would suggest insincerity n l ex-
pressed complete accord with
every expression recorded in your
roll calls but we are all agreed
about the difficulties and the in
evitsble divergence Of opinion in
seeking the reduction. amehaor-
ion and readjustment Of the bur-
dens Of taxation. Later on when |
other problems are solved. ] shall 4
make some recommendation I
about renewed consideration OF /
our tax program, but for the inn /
mediate time before us we must (
be content with the billion dollar /
tax in the tax draft upon the peo-
pie and diminished irriattions, ban
ished uncertainty and improved
methods Of collection. by your
sustainment Of the rigid economics
already inaugurated with hoped
for extension Of these economics
and added ciilciencies in admins
tration ] believe further reduction
may be enacted and hindering bur-
dens abolished.
In these urgent economies we
shall be immensely assisted by the
budget system for which you made
provision in the extraordinary
session. The first budget is before
you. It's preparation is a signal
achievement and the perfection
OF the system, a thing impossible
in the few months available for
its initial trial will mark its en-
actment as the beginning Of the
greatest reformation in govern
mental practices since the begin
ming OF the republic. There Is
pending a grant OF authority to
the administrative branch Of the
government for the funding and
settlement of our vast foreign
loans growing out OF our great
of war credits. With the hands of
the executive branch impotent,
we arc hindering urscnt readJusl-
ments among our debtors and ac-
compishing nothing for our
selves
1 think 1t is fair for the Con-
gress to assume that the eXecu-
tive branch OF the governmnt
would adopt no major policy in
daling with those matters which
would conflict with the purpose of
Congress in authorizing the loans.
certainly not without asking Con-
gressionai approval, but there are
minor problems incident to pru-
dent loan transactions and the
safeguarding Of our interest which
cannot even be attempted without
this authorization. 10 VIII be
helpful 20 ourselves and will inn
prove conditions among our
debtors II funding and the seu.le-
ment Of defaunod interest may be
negotiated.
The previous Congress, deeply
concerned in behalf of our mer.
chant marine, in 1920 enacted IN,
existing shipping law designed FOR
the upbulldinF OF American mer-
chant marine. Among other
things provided 20 encourage our
shipping on the worlds seas, the
executive was directed TO give mo-
tice OF the termination of all ex-
istmg commercial treaties in or
der to admit OF reduced duties on
imports carried in American bot
toms.
During the life OF the act no
executive has compiled with this
order OF the Congress. When the
present administration came into
responsibility it began an early
inquiry into the failure 20 execute
the expressed purpose Of the
Jones act Only one conclusion
has been possible Frankly. Nom.
bers Of House and Senate, eager
as I am 10 join you IN the maltinr
OF an American merchant marin'
commensurate with our commenc
the announcement Of our com
morcial treaties would involve u
IN a chaos OF trade relationship
and add lndescribabiy to the con
fusion Of the. already disordere
commercial world. Our power {
do 40 Is not disputed but powe
and ships. without comfy OF reir
tionship. will not give us the @,
panded trade which is inseparab'
linked with a great merchai
marine
Moreover the applied reductic
Of duty for which the treaty a
nouncements were necessary ei
couraged only the carrying
dutiable imports 70 our shore
while the tonnage which unfur
the flag on the seas is bo frl
4 and duuabie and the cargoe1 whi,
make a nation eminent in ira,
are outgoing rather then incomin
Il IS not my thought TO lay N
problem in detail before you q
day. It Is desired only to say ,
you that the executive branch {
tho government. uninnuenced D
the protest OF any nation for non
has been made. Is well convince
that your proposal highly intende
and heartily supported. Is s
fraught with difficulties that I IN
vite your tolerance Of non-com
pliancc for a very few weeks, un'
a plan may be presented wh.c
contemplatos no greater drai
upon the public treasury an
which. though yet too crude
offer today. gives some promise
expanding our merchant marin
/. that it win argue its own appr,
val. II is enough to Say tod1y tns
we are possessed OF ships and ,
the intention to possess a mti