Evening star., 1931-12-08

fIepTtStilS6tlNcs.
1t my duty under the Con-
i stitution to submit to the
Congress information on the
state OF the Union and to recon-
mend for its consideration necessary
and expe6ient measures.
The chief influence affecting tne
state of the Union during the past
year has been the continued world
wide economic disturbance. Our
national concern has been to meet
the emergencies it has created for
us and to lay the, foundations for
recovery.
If we lift our vision beyond these
immediate emergencies we find fun-
damental national gains even amid
depression. In meeting the prob
lens of this difficult period, we have
witnessed a remarkable develop
ment of the sense of cooperation In
the community For the first time
in the history of our major economic
depressions there has been notable
absence Of public disorders and in
dustrial conflict. Above all, there
is an enlargement of social and sp1r-
itual responsibility among the peo-
pie. The strains and stresses upon
business have resulted in closer ap-
plication, In saner policies and in
better methods. Public improve
ments have been carried out on a
larger scale than even in normal
times. The country is richer in
physical property, in newly discov-
cred resources and in productive ca
pacity than ever before. There has
been constant gain in knowledge and
education, there has been continu-
Gus advance in science and inVen-
tion; there has been distinct gain
in public health. Business depres-
SionS have been recurrent in the
life of our country and are but tran
STORY. The Nation has emerged
from each of them with increased
strength and virility because OF the
enlightenment they have brought,
the readjustments and the larger un-
derstanding of the realities and OBJ
legations of life and work which
come from them.
National
Defense.
Both our Army and Navy have
been maintained in q high state OF
efficiency. The ability and devotion
of both officers and men sustain the
highest traditions of the service.
Reductions and postponements in
expenditure of these departments to
meet the present emergency are
being made without reducing ex-
isting personnel or impairing the
morale of either establishment.
The agreement between the leading
naval powers for limitation of naval
armaments and establishment of
their relative strength, and thus
elimination Of competitive building,
also implies for ourselves the gradual
expansion of the deficient categories
in our Navy to the PARTIES provided
in those treaties. However, none of
the other nations, parties to these
agreements, is today maintaining the
full rate of construction which the
treaty size of fleets would imply.
Although these agreements Sc
cured the maximum reduction of
fleets which 1t WAS at that time pos
sible to attain, am hopeful that the
naval powers party to these agree
ments viii realize that establishment
of relative strength in itself offers
opportunity for further reduction
without injury to any of them. This
would be the more possible II pend
ing negotiations are successful be-
tween France and Italy. If the
world is TO regain its standards of
life, it must further decrease both
naval and other arms. The subject
will come before the General Dis
armament Conference, which meets
in Geneva on February next.
Foreign
Affairs.
We are at peace with the world.
We have co-operated with other ma
tions TO preserve peace. The rights
OF our citizens abroad have been pro-
tected.
The economic depression has con-
tinued and deepened in every part
of the world during the past year.
In many countries political instabil-
fty, excessive ornaments, debts, gov
ernmental expenditures and taxes
have resulted In revolutions. In un-
balanced budgets and monetary col
lapse and financial panics, In dump
ing Of goods upon world markets and
IN diminished consumption Of COM
modities.
Within two years there have been
revolutions or acute social disorders
in 19 countries, embracing more than
half the population of the world.
Ten countries have been unable to
meet their external obligations. In
IA countries, embracing a quarter Of
the worlds population, former none
tary standards have been tempo;
rarily abandoned. In number Of
countries there have been acute
financial panics or compulsory re-
straints upon banking. These dis
turbances have many roots In the
dislocations from the World War.
Every one of them has reacted upon
us. They have sharply affected the
markets and prices of our agricul-
tural and industrial products. They
have increased unemployment and
greatly embarrassed our financial
and credit system.
AS our difficulties during the past
year have plainly originated in large
degree from these sources, any effort
to bring about our own recuperation
has dictated the necessity of cooper
alton by us with other nations in
reasonable effort to restore world
confidence and economic stability.
Cooperation of our Federal Re-
serve System and our banks with the
central banks in foreign countries
has contributed to localize and anne
liorate a number of serious finan-
cial crises and thus avert disasters
which would have affected us or
moderate the pressure upon us.
The economic crisis In Germany
and Central Europe last June rose
to the dimensions of a general panic,
from which 1t was apparent that
without assistance these nations
must collapse. Apprehensions of such
collapse had demoralized our aRri-
cultural and security markets and so
threatened other nations as to i'm
pose further dangers upon us. But
of highest importance was the ne
cessity of cooperation on our part
to relieve the people of Germany from
imminent disasters and to maintain
their important relations to progress
and stability in the world. Upon the
initiative of this Government a
years postponement of reparations
and other ntergovernmental debts
was brought about. Upon our fur
ther initiative an agreement was
made by Germanys private creditors
providing for an extension of such
credits until the German people can
develop more permanent and definite
0f Of