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President[ Woodrow Wilson

         Date[ December 2, 1918


GENTLEMEN OF THE CONGRESS:


The year that has elapsed since I last stood before you to fulfil my

constitutional duty to give to the Congress from time to time information

on the state of the Union has been so crowded with great events, great

processes, and great results that I cannot hope to give you an adequate

picture of its transactions or of the far-reaching changes which have been

wrought of our nation and of the world. You have yourselves witnessed these

things, as I have. It is too soon to assess them; and we who stand in the

midst of them and are part of them are less qualified than men of another

generation will be to say what they mean, or even what they have been. But

some great outstanding facts are unmistakable and constitute, in a sense,

part of the public business with which it is our duty to deal. To state

them is to set the stage for the legislative and executive action which

must grow out of them and which we have yet to shape and determine.


A year ago we had sent 145,918 men overseas. Since then we have sent

1,950,513, an average of 162,542 each month, the number in fact rising, in

May last, to 245,951, in June to 278,760, in July to 307,182, and

continuing to reach similar figures in August and September, in August

289,570 and in September 257,438. No such movement of troops ever took

place before, across three thousand miles of sea, followed by adequate

equipment and supplies, and carried safely through extraordinary dangers of

attack,-dangers which were alike strange and infinitely difficult to guard

against. In all this movement only seven hundred and fifty-eight men were

lost by enemy attack, six hundred and thirty of whom were upon a single

English transport which was sunk near the Orkney Islands.


I need not tell you what lay back of this great movement of men and

material. It is not invidious to say that back of it lay a supporting

organization of the industries of the country and of all its productive

activities more complete, more thorough in method and effective in result,

more spirited and unanimous in purpose and effort than any other great

belligerent had been able to effect. We profited greatly by the experience

of the nations which had already been engaged for nearly three years in the

exigent and exacting business, their every resource and every executive

proficiency taxed to the utmost. We were their pupils. But we learned

quickly and acted with a promptness and a readiness of cooperation that

justify our great pride that we were able to serve the world with

unparalleled energy and quick accomplishment.


But it is not the physical scale and executive efficiency of preparation,

supply, equipment and despatch that I would dwell upon, but the mettle and

quality of the officers and men we sent over and of the sailors who kept

the seas, and the spirit of the nation that stood behind them. No soldiers

or sailors ever proved themselves more quickly ready for the test of battle

or acquitted themselves with more splendid courage and achievement when put

to the test. Those of us who played some part in directing the great

processes by which the war was pushed irresistibly forward to the final

triumph may now forget all that and delight our thoughts with the story of

what our men did. Their officers understood the grim and exacting task they

had undertaken and performed it with an audacity, efficiency, and

unhesitating courage that touch the story of convoy and battle with

imperishable distinction at every turn, whether the enterprise were great

or small, from their great chiefs, Pershing and Sims, down to the youngest

lieutenant; and their men were worthy of them,-such men as hardly need to

be commanded, and go to their terrible adventure blithely and with the

quick intelligence of those who know just what it is they would accomplish.

I am proud to be the fellow-countryman of men of such stuff and valor. Those

of us who stayed at home did our duty; the war could not have been won or

the gallant men who fought it given their opportunity to win it otherwise;

but for many a long day we shall think ourselves "accurs'd we were not

there, and hold our manhoods cheap while any speaks that fought" with these

at St. Mihiel or Thierry. The memory of those days of triumphant battle

will go with these fortunate men to their graves; and each will have his

favorite memory. "Old men forget; yet all shall be forgot, but hell

remember with advantages what feats he did that day!"


What we all thank God for with deepest gratitude is that our men went in

force into the line of battle just at the critical moment when the whole

fate of the world seemed to hang in the balance and threw their fresh

strength into the ranks of freedom in time to turn the whole tide and sweep

of the fateful struggle,-turn it once for all, so that thenceforth it was

back, back, back for their enemies, always back, never again forward! After

that it was only a scant four months before the commanders of the Central

Empires knew themselves beaten; and now their very empires are in

liquidation!


And throughout it all how fine the spirit of the nation was: what unity of

purpose, what untiring zeal! What elevation of purpose ran through all its

splendid display of strength, its untiring accomplishment! I have said that

those of us who stayed at home to do the work of organization and supply

will always wish that we had been with the men whom we sustained by our

labor; but we can never be ashamed. It has been an inspiring thing to be

here in the midst of fine men who had turned aside from every private

interest of their own and devoted the whole of their trained capacity to

the tasks that supplied the sinews of the whole great undertaking! The

patriotism, the unselfishness, the thoroughgoing devotion and distinguished

capacity that marked their toilsome labors, day after day, month after

month, have made them fit mates and comrades of the men in the trenches and

on the sea. And not the men here in Washington only. They have but directed

the vast achievement. Throughout innumerable factories, upon innumerable

farms, in the depths of coal mines and iron mines and copper mines,

wherever the stuffs of industry were to be obtained and prepared, in the

shipyards, on the railways, at the docks, on the sea, in every labor that

was needed to sustain the battle lines, men have vied with each other to do

their part and do it well. They can look any man-at-arms in the face, and

say, We also strove to win and gave the best that was in us to make our

fleets and armies sure of their triumph!


And what shall we say of the women,-of their instant intelligence,

quickening every task that they touched; their capacity for organization

and cooperation, which gave their action discipline and enhanced the

effectiveness of everything they attempted; their aptitude at tasks to

which they had never before set their hands; their utter self-sacrifice

alike in what they did and in what they gave? Their contribution to the

great result is beyond appraisal. They have added a new lustre to the

annals of American womanhood.


The least tribute we can pay them is to make them the equals of men in

political rights as they have proved themselves their equals in every field

of practical work they have entered, whether for themselves or for their

country. These great days of completed achievement would be sadly marred

were we to omit that act of justice. Besides the immense practical services

they have rendered the women of the country have been the moving spirits in

the systematic economies by which our people have voluntarily assisted to

supply the suffering peoples of the world and the armies upon every front

with food and everything else that we had that might serve the common

cause. The details of such a story can never be fully written, but we carry

them at our hearts and thank God that we can say that we are the kinsmen of

such.


And now we are sure of the great triumph for which every sacrifice was

made. It has come, come in its completeness, and with the pride and

inspiration of these days of achievement quick within us, we turn to the

tasks of peace again,-a peace secure against the violence of irresponsible

monarchs and ambitious military coteries and made ready for a new order,

for new foundations of justice and fair dealing.


We are about to give order and organization to this peace not only for

ourselves but for the other peoples of the world as well, so far as they

will suffer us to serve them. It is international justice that we seek, not

domestic safety merely. Our thoughts have dwelt of late upon Europe, upon

Asia, upon the near and the far East, very little upon the acts of peace

and accommodation that wait to be performed at our own doors. While we are

adjusting our relations with the rest of the world is it not of capital

importance that we should clear away all grounds of misunderstanding with

our immediate neighbors and give proof of the friendship we really feel? I

hope that the members of the Senate will permit me to speak once more of

the unratified treaty of friendship and adjustment with the Republic of

Colombia. I very earnestly urge upon them an early and favorable action

upon that vital matter. I believe that they will feel, with me, that the

stage of affairs is now set for such action as will be not only just but

generous and in the spirit of the new age upon which we have so happily

entered.


So far as our domestic affairs are concerned the problem of our return to

peace is a problem of economic and industrial readjustment. That problem is

less serious for us than it may turn out too he for the nations which have

suffered the disarrangements and the losses of war longer than we. Our

people, moreover, do not wait to be coached and led. They know their own

business, are quick and resourceful at every readjustment, definite in

purpose, and self-reliant in action. Any leading strings we might seek to

put them in would speedily become hopelessly tangled because they would pay

no attention to them and go their own way. All that we can do as their

legislative and executive servants is to mediate the process of change

here, there, and elsewhere as we may. I have heard much counsel as to the

plans that should be formed and personally conducted to a happy

consummation, but from no quarter have I seen any general scheme of

"reconstruction" emerge which I thought it likely we could force our

spirited business men and self-reliant laborers to accept with due pliancy

and obedience.


While the war lasted we set up many agencies by which to direct the

industries of the country in the services it was necessary for them to

render, by which to make sure of an abundant supply of the materials

needed, by which to check undertakings that could for the time be dispensed

with and stimulate those that were most serviceable in war, by which to

gain for the purchasing departments of the Government a certain control

over the prices of essential articles and materials, by which to restrain

trade with alien enemies, make the most of the available shipping, and

systematize financial transactions, both public and private, so that there

would be no unnecessary conflict or confusion,-by which, in short, to put

every material energy of the country in harness to draw the common load

and make of us one team in the accomplishment of a great task. But the

moment we knew the armistice to have been signed we took the harness off.

Raw materials upon which the Government had kept its hand for fear there

should not be enough for the industries that supplied the armies have been

released and put into the general market again. Great industrial plants

whose whole output and machinery had been taken over for the uses of the

Government have been set free to return to the uses to which they were put

before the war. It has not been possible to remove so readily or so quickly

the control of foodstuffs and of shipping, because the world has still to

be fed from our granaries and the ships are still needed to send supplies

to our men overseas and to bring the men back as fast as the disturbed

conditions on the other side of the water permit; but even there restraints

are being relaxed as much as possible and more and more as the weeks go by.


Never before have there been agencies in existence in this country which

knew so much of the field of supply, of labor, and of industry as the War

Industries Board, the War Trade Board, the Labor Department, the Food

Administration, and the Fuel Administration have known since their labors

became thoroughly systematized; and they have not been isolated agencies;

they have been directed by men who represented the permanent Departments of

the Government and so have been the centres of unified and cooperative

action. It has been the policy of the Executive, therefore, since the

armistice was assured (which is in effect a complete submission of the

enemy) to put the knowledge of these bodies at the disposal of the business

men of the country and to offer their intelligent mediation at every point

and in every matter where it was desired. It is surprising how fast the

process of return to a peace footing has moved in the three weeks since the

fighting stopped. It promises to outrun any inquiry that may be instituted

and any aid that may be offered. It will not be easy to direct it any

better than it will direct itself. The American business man is of quick

initiative.


The ordinary and normal processes of private initiative will not, however,

provide immediate employment for all of the men of our returning armies.

Those who are of trained capacity, those who are skilled workmen, those who

have acquired familiarity with established businesses, those who are ready

and willing to go to the farms, all those whose aptitudes are known or will

be sought out by employers will find no difficulty, it is safe to say, in

finding place and employment. But there will be others who will be at a

loss where to gain a livelihood unless pains are taken to guide them and

put them in the way of work. There will be a large floating residuum of

labor which should not be left wholly to shift for itself. It seems to me

important, therefore, that the development of public works of every sort

should be promptly resumed, in order that opportunities should be created

for unskilled labor in particular, and that plans should be made for such

developments of our unused lands and our natural resources as we have

hitherto lacked stimulation to undertake.


I particularly direct your attention to the very practical plans which the

Secretary of the Interior has developed in his annual report and before

your Committees for the reclamation of arid, swamp, and cutover lands which

might, if the States were willing and able to cooperate, redeem some three

hundred million acres of land for cultivation. There are said to be fifteen

or twenty million acres of land in the West, at present arid, for whose

reclamation water is available, if properly conserved. There are about two

hundred and thirty million acres from which the forests have been cut but

which have never yet been cleared for the plow and which lie waste and

desolate. These lie scattered all over the Union. And there are nearly

eighty million acres of land that lie under swamps or subject to periodical

overflow or too wet for anything but grazing, which it is perfectly

feasible to drain and protect and redeem. The Congress can at once direct

thousands of the returning soldiers to the reclamation of the arid lands

which it has already undertaken, if it will but enlarge the plans and

appropriations which it has entrusted to the Department of the Interior. It

is possible in dealing with our unused land to effect a great rural and

agricultural development which will afford the best sort of opportunity to

men who want to help themselves and the Secretary of the Interior has

thought the possible methods out in a way which is worthy of your most

friendly attention.


I have spoken of the control which must yet for a while, perhaps for a long

long while, be exercised over shipping because of the priority of service

to which our forces overseas are entitled and which should also be accorded

the shipments which are to save recently liberated peoples from starvation

and many devastated regions from permanent ruin. May I not say a special

word about the needs of Belgium and northern France? No sums of money paid

by way of indemnity will serve of themselves to save them from hopeless

disadvantage for years to come. Something more must be done than merely

find the money. If they had money and raw materials in abundance to-morrow

they could not resume their place in the industry of the world

to-morrow,-the very important place they held before the flame of war swept

across them. Many of their factories are razed to the ground. Much of their

machinery is destroyed or has been taken away. Their people are scattered

and many of their best workmen are dead. Their markets will be taken by

others, if they are not in some special way assisted to rebuild their

factories and replace their lost instruments of manufacture. They should

not be left to the vicissitudes of the sharp competition for materials and

for industrial facilities which is now to set in. I hope, therefore, that

the Congress will not be unwilling, if it should become necessary, to grant

to some such agency as the War Trade Board the right to establish

priorities of export and supply for the benefit of these people whom we

have been so happy to assist in saving from the German terror and whom we

must not now thoughtlessly leave to shift for themselves in a pitiless

competitive market.


For the steadying, and facilitation of our own domestic business

readjustments nothing is more important than the immediate determination of

the taxes that are to be levied for 1918, 1919, and 1920. As much of the

burden of taxation must be lifted from business as sound methods of

financing the Government will permit, and those who conduct the great

essential industries of the country must be told as exactly as possible

what obligations to the Government they will be expected to meet in the

years immediately ahead of them. It will be of serious consequence to the

country to delay removing all uncertainties in this matter a single day

longer than the right processes of debate justify. It is idle to talk of

successful and confident business reconstruction before those uncertainties

are resolved.


If the war had continued it would have been necessary to raise at least

eight billion dollars by taxation payable in the year 1919; but the war has

ended and I agree with the Secretary of the Treasury that it will be safe

to reduce the amount to six billions. An immediate rapid decline in the

expenses of the Government is not to be looked for. Contracts made for war

supplies will, indeed, be rapidly cancelled and liquidated, but their

immediate liquidation will make heavy drains on the Treasury for the months

just ahead of us. The maintenance of our forces on the other side of the

sea is still necessary. A considerable proportion of those forces must

remain in Europe during the period of occupation, and those which are

brought home will be transported and demobilized at heavy expense for

months to come. The interest on our war debt must of course be paid and

provision made for the retirement of the obligations of the Government

which represent it. But these demands will of course fall much below what a

continuation of military operations would have entailed and six billions

should suffice to supply a sound foundation for the financial operations of

the year.


I entirely concur with the Secretary of the Treasury in recommending that

the two billions needed in addition to the four billions provided by

existing law be obtained from the profits which have accrued and shall

accrue from war contracts and distinctively war business, but that these

taxes be confined to the war profits accruing in 1918, or in 1919 from

business originating in war contracts. I urge your acceptance of his

recommendation that provision be made now, not subsequently, that the taxes

to be paid in 1920 should be reduced from six to four billions. Any

arrangements less definite than these would add elements of doubt and

confusion to the critical period of industrial readjustment through which

the country must now immediately pass, and which no true friend of the

nation's essential business interests can afford to be responsible for

creating or prolonging. Clearly determined conditions, clearly and simply

charted, are indispensable to the economic revival and rapid industrial

development which may confidently be expected if we act now and sweep all

interrogation points away.


I take it for granted that the Congress will carry out the naval programme

which was undertaken before we entered the war. The Secretary of the Navy

has submitted to your Committees for authorization that part of the

programme which covers the building plans of the next three years. These

plans have been prepared along the lines and in accordance with the policy

which the Congress established, not under the exceptional conditions of the

war, but with the intention of adhering to a definite method of development

for the navy. I earnestly recommend the uninterrupted pursuit of that

policy. It would clearly be unwise for us to attempt to adjust our

programmes to a future world policy as yet undetermined.


The question which causes me the greatest concern is the question of the

policy to be adopted towards the railroads. I frankly turn to you for

counsel upon it. I have no confident judgment of my own. I do not see how

any thoughtful man can have who knows anything of the complexity of the

problem. It is a problem which must be studied, studied immediately, and

studied without bias or prejudice. Nothing can be gained by becoming

partisans of any particular plan of settlement.


It was necessary that the administration of the railways should be taken

over by the Government so long as the war lasted. It would have been

impossible otherwise to establish and carry through under a single

direction the necessary priorities of shipment. It would have been

impossible otherwise to combine maximum production at the factories and

mines and farms with the maximum possible car supply to take the products

to the ports and markets; impossible to route troop shipments and freight

shipments without regard to the advantage or-disadvantage of the roads

employed; impossible to subordinate, when necessary, all questions of

convenience to the public necessity; impossible to give the necessary

financial support to the roads from the public treasury. But all these

necessities have now been served, and the question is, What is best for the

railroads and for the public in the future?


Exceptional circumstances and exceptional methods of administration were

not needed to convince us that the railroads were not equal to the immense

tasks of transportation imposed upon them by the rapid and continuous

development of the industries of the country. We knew that already. And we

knew that they were unequal to it partly because their full cooperation was

rendered impossible by law and their competition made obligatory, so that

it has been impossible to assign to them severally the traffic which could

best be carried by their respective lines in the interest of expedition and

national economy.


We may hope, I believe, for the formal conclusion of the war by treaty by

the time Spring has come. The twenty-one months to which the present control

of the railways is limited after formal proclamation of peace shall have

been made will run at the farthest, I take it for granted, only to the

January of 1921. The full equipment of the railways which the federal

administration had planned could not be completed within any such period.

The present law does not permit the use of the revenues of the several

roads for the execution of such plans except by formal contract with their

directors, some of whom will consent while some will not, and therefore

does not afford sufficient authority to undertake improvements upon the

scale upon which it would be necessary to undertake them. Every approach to

this difficult subject-matter of decision brings us face to face,

therefore, with this unanswered question: What is it right that we should

do with the railroads, in the interest of the public and in fairness to

their owners?


Let me say at once that I have no answer ready. The only thing that is

perfectly clear to me is that it is not fair either to the public or to the

owners of the railroads to leave the question unanswered and that it will

presently become my duty to relinquish control of the roads, even before

the expiration of the statutory period, unless there should appear some

clear prospect in the meantime of a legislative solution. Their release

would at least produce one element of a solution, namely certainty and a

quick stimulation of private initiative.


I believe that it will be serviceable for me to set forth as explicitly as

possible the alternative courses that lie open to our choice. We can simply

release the roads and go back to the old conditions of private management,

unrestricted competition, and multiform regulation by both state and

federal authorities; or we can go to the opposite extreme and establish

complete government control, accompanied, if necessary, by actual

government ownership; or we can adopt an intermediate course of modified

private control, under a more unified and affirmative public regulation and

under such alterations of the law as will permit wasteful competition to be

avoided and a considerable degree of unification of administration to be

effected, as, for example, by regional corporations under which the

railways of definable areas would be in effect combined in single systems.


The one conclusion that I am ready to state with confidence is that it

would be a disservice alike to the country and to the owners of the

railroads to return to the old conditions unmodified. Those are conditions

of restraint without development. There is nothing affirmative or helpful

about them. What the country chiefly needs is that all its means of

transportation should be developed, its railways, its waterways, its

highways, and its countryside roads. Some new element of policy, therefore,

is absolutely necessary--necessary for the service of the public, necessary

for the release of credit to those who are administering the railways,

necessary for the protection of their security holders. The old policy may

be changed much or little, but surely it cannot wisely be left as it was. I

hope that the Con will have a complete and impartial study of the whole

problem instituted at once and prosecuted as rapidly as possible. I stand

ready and anxious to release the roads from the present control and I must

do so at a very early date if by waiting until the statutory limit of time

is reached I shall be merely prolonging the period of doubt and uncertainty

which is hurtful to every interest concerned.


I welcome this occasion to announce to the Congress my purpose to join in

Paris the representatives of the governments with which we have been

associated in the war against the Central Empires for the purpose of

discussing with them the main features of the treaty of peace. I realize

the great inconveniences that will attend my leaving the country,

particularly at this time, but the conclusion that it was my paramount duty

to go has been forced upon me by considerations which I hope will seem as

conclusive to you as they have seemed to me.


The Allied governments have accepted the bases of peace which I outlined to

the Congress on the eighth of January last, as the Central Empires also

have, and very reasonably desire my personal counsel in their

interpretation and application, and it is highly desirable that I should

give it in order that the sincere desire of our Government to contribute

without selfish purpose of any kind to settlements that will be of common

benefit to all the nations concerned may be made fully manifest. The peace

settlements which are now to be agreed upon are of transcendent importance

both to us and to the rest of the world, and I know of no business or

interest which should take precedence of them. The gallant men of our armed

forces on land and sea have consciously fought for the ideals which they

knew to be the ideals of their country; I have sought to express those

ideals; they have accepted my statements of them as the substance of their

own thought and purpose, as the associated governments have accepted them;

I owe it to them to see to it, so far as in me lies, that no false or

mistaken interpretation is put upon them, and no possible effort omitted to

realize them. It is now my duty to play my full part in making good what

they offered their life's blood to obtain. I can think of no call to

service which could transcend this.


I shall be in close touch with you and with affairs on this side the water,

and you will know all that I do. At my request, the French and English

governments have absolutely removed the censorship of cable news which

until within a fortnight they had maintained and there is now no censorship

whatever exercised at this end except upon attempted trade communications

with enemy countries. It has been necessary to keep an open wire constantly

available between Paris and the Department of State and another between

France and the Department of War. In order that this might be done with the

least possible interference with the other uses of the cables, I have

temporarily taken over the control of both cables in order that they may be

used as a single system. I did so at the advice of the most experienced

cable officials, and I hope that the results will justify my hope that the

news of the next few months may pass with the utmost freedom and with the

least possible delay from each side of the sea to the other.


May I not hope, Gentlemen of the Congress, that in the delicate tasks I

shall have to perform on the other side of the sea, in my efforts truly and

faithfully to interpret the principles and purposes of the country we love,

I may have the encouragement and the added strength of your united support?

I realize the magnitude and difficulty of the duty I am undertaking; I am

poignantly aware of its grave responsibilities. I am the servant of the

nation. I can have no private thought or purpose of my own in performing

such an errand. I go to give the best that is in me to the common

settlements which I must now assist in arriving at in conference with the

other working heads of the associated governments. I shall count upon your

friendly countenance and encouragement. I shall not be inaccessible. The

cables and the wireless will render me available for any counsel or service

you may desire of me, and I shall be happy in the thought that I am

constantly in touch with the weighty matters of domestic policy with which

we shall have to deal. I shall make my absence as brief as possible and

shall hope to return with the happy assurance that it has been possible to

translate into action the great ideals for which America has striven.


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