Evening star., 1927-12-06
Message Cites
Problems of
Welfare.
FARMER LOAN
FUND is URGED
Tax Slash Based ON
Treasury Report
Approved.

Encouraging though the present
era of prosperity may be. America
must continue to practice stern
self-denal in public expenditures
- President Coolidge declared today in
presenting to Congress his annual
report on the state of the Union.
While advocating constructive
economy" in Government expendi-
lures, the Chief Executive made 1t
plain that the Nation must not tor
get its obligations with respect to
such outstanding national problems
as flood control farm relief, taxa
ton and the national defense.
The message reviewed, one by one,
the major factors which the Presi-
dent considers important to the con-
tinued welfare of the people, and re-
itcrated views previously expressed
regarding legislation for the farmers
the taxpayers, food sufferers. the
Army and Navy and other groups
in need of Federal aid.
Mississippi Relief Urged.
Congress was urged to conf1ne It's
food control legislation this year to
the lower Mississippi Valley, and let
other flood, navigation, irrigation ana
power projects wait. The War De-
partment. it was pointed out, will pre-
sent to Congress adequate plans Tor
preventing a recurrence of this year $
national disaster" and mo required
relief should be refused" Residents
of the lower valley should bear some
proportionate share Of the big imam
cial burden involved in controlling the
Mississippi. it was emphasized.
.Price.fixing and subsidy" the
President said. cannot solve the farm
problem, but can only result in disas-
fer. The Government can. however.
assist the farmers in marketing their
products in cooperative. orderly man.
ner. he explained. A Federal board,
backed with a revolving loan 1und.
could do much to solve the farm sur
MUS problem by lending financial aid
and moral encoura cement by market
ing associations, he said. proposals
for assisting the farmers Oy reducing
tariff rates on industry are not SOUND
and would prove a disastrous BOONE
rang. the legislators were told.
President Coolidge warned against
drastic tax reduction at this time. De.
claring that the Nations probable sur
pl1,s of money for the year ending
June 80. 1929, is small. he asserted
'.the people ought to take no selnsh
attitude of pressing for removing
moderate and fair taxes. which might
produce a deficit" Further reductions
in taxes, he said. should be mainly for
the purpose of removing inequalities"
Fayors Boulder Dam.
The present moderate" military de-
fenses should be continued. the mes
sage stated with very generous
supply of officers and with the present
base of personnel. subject to fiuctua
tions which may be temporarily deslr'
able.
CONSTRUCTION of dam at Boulder
Canyon in the Colorado River was
favored by the President, who eau
toned, however, that every other pos
sibility should be exhausted before the
Federal Government becomes engaged
in the power business. Muscle Shoals
he said, should be sold to private in
terests providing the revenues are
dedicated to agriculture. through re-
search for methods of more economical
production of centralized fertilizer.
Contending that the country had at
tained prosperity never exceeded ano
therefore was in a position to enjoy
some of the benefits which result from
economy, Mr.. Coolidge presented the
specter. nevertheless, Of a large ma
tional debt and warned that until the
revenues now directed toward its re
duction could be diverted to internal
improvements and national develop
ment, the people must continue to sac
rifice and the Government must con
tinue to economiZe.
1.-The Secretary of the Trea sury,
the President said, has recommended
a measure which would give us much
better balanced system of taxation
and without oppression produce sum
cient revenue. 1t has my complete
support.
Urges Law Observance.
Although but one paragraph of his
message was devoted to prohibition
the President emphasized the need foi
both the people and public officials Il
''observe the sanctions of this consti
tutiona1 provision and its resulting
laws" Recalling that Congress ant
the States with one or two notable
exceptions" have passed adequate law:
for enforcement of the eighteenth
amendment, Mr.. Coolidge declared tha
1.-The Federal authorities proposed Il
discharge their obligation for enforce
ment to the full extent of their abil
ity."
Railroad consolidation is necessar,
TO the welfare of both agriculture ant
industry. the President said in recon
mending that further legislation to ia
cilitate this under the supervision o
the Interstate Commerce Commission
he passed without further delay. II
also restated his desire for Legislation
which would permit him to act during
coal strikes.
Although the message was devote
Aaimost exclusively to domestic affairs
the President did inform Congress
again that American Intervention i
foreign lands was merely for the pul
nose of protecting the lives and prol
erty of this country's nationals. II
defended the administration S policy i
China and Nicaragua and eXpresse
the belief that the controversy wit
Mexico over oil and land laws. by g
firm adherence to our rights and
scrupulous respect for the sovereient
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