The Birmingham age-herald., 1923-12-07

were in we'll doing, not by force, but by reason.
 Foreign Papers.
 Under the law the papers pertain ing to foreign relations to be printed are transmitted as 8 part of this message. Other volumes of these papers will follow.
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 Foreign Service.
 The foreign service of our gov ernment needs to be reorganized and improved.
 Fiscal Conditions.
 Our main problems are domestic problems. Financial stability is the
 first requisite of sound government.
 We can not escape the effect of world conditions. We can not avoid l the inevitable results of the economic disorders which have reached all na- tions. But we-shall diminish their harm to us in proportion as we con- tinue to restore our government finances to a. secure and endurab1e | position. This we can and must do. Upon that firm foundation rests the only hope of progress and pros perity. From that source must como relief for the people.
 This Is being accomplished by . drastic but orderly referendum ent, which Is bringing our expenses with in our means. The origin of this has been the determination of the Ameri- can people, the main support has been the courage of those in author ity. and the effective method has been the budget system. The result has involved real sacrifice by de- pertinent heads. but it has been made without flinching. This system Is law of the Congress. It represents your will. It must be maintained, and ought to be strengthened by the example of your observance. With out budget system there can be no fixed responsibility and no construc- tive scientific economy.
 This great concentration of effort by the administration and Congress has brought the expenditures, exclu- sive of the selfsupporting post of flee department, down to $3.000, ,000.- 900. It is possible. in consequence. taxes of the people, which Is tho sole object of all curtailment. This Is treated at greater length in the bud get message. and a proposed plan has been presented in detail in a statement by the Secretary of the Treasury which has my unqualified approval. I especially commend a decrease on earned incomes, and fur ther abolition of admission, message, and nuisance taxes. The amusement and educational value of moving pie
 lures ought not to be taxed. Di- minishing charges against moderate incomes from investment will afford immense relief, while a revision of the surtaxes will not only provide additional money for capital invest ment, thus stimulating industry and employing more labor, but will not l,a frnv "a source, and may In the future ac- tually increase 1t.
 Being opposed to war taxes in time of peace, I am not in favor Of ex- cess profits taxes. A very great service could be rendered through relieving the people of some of the burden of taxation.t, To reduce war taxes is to give every home bet ter chance.
 For seven years the people have borne with uncomplaining courage the tremendous burden of national and local taxation. These must both be reduced The taxes of the na- tion must be reduced now as much as prudence will permit, and expendi- lures must be reduced accordingly. High taxes reach everywhere and heavily upon the poor. They dimin- ish industry and commerce. They make agriculture unprofitable. They increase the rates on transportation They are a charge on every necessary rof life. Of ,all services which the Congress can render to the country. I have no hesitation in declaring this one to be paramount. To neglect 1t, to postpone 1t, to obstruct it by un- sound proposals, is to become un- worthy of public confidence and un- true to public trust. The country ia right -of-way over all others.
 Another reform which Is urgent Tn our fiscal system Is the aDolltion or the right to Issue tax-exempt secur- ities. The existing system not only permits a large amount of the wealth of the nation to escape its Just bur den but acts as continual stimu- lant to municipal extravaganza. This should be prohibited by constitu- tional amendment. All the wealth or the nation ought to contribute US fair share to the expenses of the na- ton. Tariff Law.
 The present tariff law has accom- plished it's two main objects. It mas secured an abundant revenue ana been productive of an abounding prosperity. Under it the country has had a very large export and import trade. A constant revision of the tariff by the Congress Is disturping and harmful. The present law con tains an elastic provision authoriz- ing the President to Increase or de- crease present schedules not In ex- cess of 50 per centum to meet the difference in cost of production at home and abroad. This does not. to my mind, warrant rewriting. or the whole law, but does mean, ana VIII be so administered, that whenever the required investigation shows that ineaualities of sufficient importance exist in any schedule, the power to change them should and will be ap- piled.
 Shipping. try is dependent upon transportation by sea and land. Our government during the war acquired . large mer- chant fleet which should be trans ferred, as soon as possible. to private ownership and operation under con ditions which would secure two re- suits: First, and of prime impor- tance, adequate means for national defense; second, adequate service to American commerce.. Until shipping conditions are such that our fleet can be disposed of advantageously under these conditions. 1t will be operated as economically as possible under such plans as may be devised from time to time by the shipping board. We must have a merchant marine which meets these requirements. and we shall have to pay tho cost of its service.
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 Public Improvements.
 The time has come to resume in moderate way the opening of our in- tracoastal waterways; the control or flood waters of the Mississippi and of the Colorado rivers; the improve