Contents    Prev    Next    Last

President[ Dwight D. Eisenhower

         Date[ January 7, 1954

Mr. President, Mr. Speaker, Members of the Eighty-third Congress:

It is a high honor again to present to the Congress my views on the state

of the Union and to recommend measures to advance the security, prosperity,

and well-being of the American people.

All branches of this Government--and I venture to say both of our great

parties--can support the general objective of the recommendations I make

today, for that objective is the building of a stronger America. A nation

whose every citizen has good reason for bold hope; where effort is rewarded

and prosperity is shared; where freedom expands and peace is secure--that

is what I mean by a stronger America.

Toward this objective a real momentum has been developed during this

Administration's first year in office. We mean to continue that momentum

and to increase it. We mean to build a better future for this nation.

Much for which we may be thankful has happened during the past year.

First of all we are deeply grateful that our sons no longer die on the

distant mountains of Korea. Although they are still called from our homes

to military service, they are no longer called to the field of battle.

The nation has just completed the most prosperous year in its history. The

damaging effect of inflation on the wages, pensions, salaries and savings

of us all has been brought under control. Taxes have begun to go down. The

cost of our government has been reduced and its work proceeds with some

183,000 fewer employees; thus the discouraging trend of modern governments

toward their own limitless expansion has in our case been reversed. The

cost of armaments becomes less oppressive as we near our defense goals; yet

we are militarily stronger every day. During the year, creation of the new

Cabinet Department of Health, Education, and Welfare symbolized the

government's permanent concern with the human problems of our citizens.

Segregation in the armed forces and other Federal activities is on the way

out. We have also made progress toward its elimination in the District of

Columbia. These are steps in the continuing effort to eliminate

inter-racial difficulty.

Some developments beyond our shores have been equally encouraging.

Communist aggression, halted in Korea, continues to meet in Indo-china the

vigorous resistance of France and the Associated States, assisted by timely

aid from our country. In West Germany, in Iran, and in other areas of the

world, heartening political victories have been won by the forces of

stability and freedom. Slowly but surely, the free world gathers strength.

Meanwhile, from behind the iron curtain, there are signs that tyranny is in

trouble and reminders that its structure is as brittle as its surface is

hard.

There has been in fact a great strategic change in the world during the

past year. That precious intangible, the initiative, is becoming ours. Our

policy, not limited to mere reaction against crises provoked by others, is

free to develop along lines of our choice not only abroad, but also at

home. As a major theme for American policy during the coming year, let our

joint determination be to hold this new initiative and to use it.

We shall use this initiative to promote three broad purposes: First, to

protect the freedom of our people; second, to maintain a strong, growing

economy; third, to concern ourselves with the human problems of the

individual citizen.

Only by active concern for each of these purposes can we be sure that we

are on the forward road to a better and a stronger America. All my

recommendations today are in furtherance of these three purposes.

I. FOREIGN AFFAIRS

American freedom is threatened so long as the world Communist conspiracy

exists in its present scope, power and hostility. More closely than ever

before, American freedom is interlocked with the freedom of other people.

In the unity of the free world lies our best chance to reduce the Communist

threat without war. In the task of maintaining this unity and strengthening

all its parts, the greatest responsibility falls naturally on those who,

like ourselves, retain the most freedom and strength.

We shall, therefore, continue to advance the cause of freedom on foreign

fronts.

In the Far East, we retain our vital interest in Korea. We have negotiated

with the Republic of Korea a mutual security pact, which develops our

security system for the Pacific and which I shall promptly submit to the

Senate for its consent to ratification. We are prepared to meet any renewal

of armed aggression in Korea. We shall maintain indefinitely our bases in

Okinawa. I shall ask the Congress to authorize continued material

assistance to hasten the successful conclusion of the struggle in

Indo-china. This assistance will also bring closer the day when the

Associated States may enjoy the independence already assured by France. We

shall also continue military and economic aid to the Nationalist Government

of China.

In South Asia, profound changes are taking place in free nations which are

demonstrating their ability to progress through democratic methods. They

provide an inspiring contrast to the dictatorial methods and backward

course of events in Communist China. In these continuing efforts, the free

peoples of South Asia can be assured of the support of the United States.

In the Middle East, where tensions and serious problems exist, we will show

sympathetic and impartial friendship.

In Western Europe our policy rests firmly on the North Atlantic Treaty. It

will remain so based as far ahead as we can see. Within its organization,

the building of a united European community, including France and Germany,

is vital to a free and self-reliant Europe. This will be promoted by the

European Defense Community which offers assurance of European security.

With the coming of unity to Western Europe, the assistance this Nation can

render for the security of Europe and the free world will be multiplied in

effectiveness.

In the Western Hemisphere we shall continue to develop harmonious and

mutually beneficial cooperation with our neighbors. Indeed, solid

friendship with all our American neighbors is a cornerstone of our entire

policy.

In the world as a whole, the United Nations, admittedly still in a state of

evolution, means much to the United States. It has given uniquely valuable

services in many places where violence threatened. It is the only real

world forum where we have the opportunity for international presentation

and rebuttal. It is a place where the nations of the world can, if they

have the will, take collective action for peace and justice. It is a place

where the guilt can be squarely assigned to those who fail to take all

necessary steps to keep the peace. The United Nations deserves our

continued firm support.

FOREIGN ASSISTANCE AND TRADE

In the practical application of our foreign policy, we enter the field of

foreign assistance and trade.

Military assistance must be continued. Technical assistance must be

maintained. Economic assistance can be reduced. However, our economic

programs in Korea and in a few other critical places of the world are

especially important, and I shall ask Congress to continue them in the next

fiscal year.

The forthcoming Budget Message will propose maintenance of the Presidential

power of transferability of all assistance funds and will ask authority to

merge these funds with the regular defense funds. It will also propose that

the Secretary of Defense have primary responsibility for the administration

of foreign military assistance in accordance with the policy guidance of

the Secretary of State.

The fact that we can now reduce our foreign economic assistance in many

areas is gratifying evidence that its objectives are being achieved. By

continuing to surpass her prewar levels of economic activity, Western

Europe gains self-reliance. Thus our relationship enters a new phase which

can bring results beneficial to our taxpayers and our allies alike, if

still another step is taken.

This step is the creation of a healthier and freer system of trade and

payments within the free world--a system in which our allies can earn their

own way and our own economy can continue to flourish. The free world can no

longer afford the kinds of arbitrary restraints on trade that have

continued ever since the war. On this problem I shall submit to the

Congress detailed recommendations, after our Joint Commission on Foreign

Economic Policy has made its report.

ATOMIC ENERGY PROPOSAL

As we maintain our military strength during the coming year and draw closer

the bonds with our allies, we shall be in an improved position to discuss

outstanding issues with the Soviet Union. Indeed we shall be glad to do so

whenever there is a reasonable prospect of constructive results. In this

spirit the atomic energy proposals of the United States were recently

presented to the United Nations General Assembly. A truly constructive

Soviet reaction will make possible a new start toward an era of peace, and

away from the fatal road toward atomic war.

DEFENSE

Since our hope is peace, we owe ourselves and the world a candid

explanation of the military measures we are taking to make that peace

secure.

As we enter this new year, our military power continues to grow. This power

is for our own defense and to deter aggression. We shall not be aggressors,

but we and our allies have and will maintain a massive capability to strike

back.

Here are some of the considerations in our defense planning:

First, while determined to use atomic power to serve the usages of peace,

we take into full account our great and growing number of nuclear weapons

and the most effective means of using them against an aggressor if they are

needed to preserve our freedom. Our defense will be stronger if, under

appropriate security safeguards, we share with our allies certain knowledge

of the tactical use of our nuclear weapons. I urge the Congress to provide

the needed authority.

Second, the usefulness of these new weapons creates new relationships

between men and materials. These new relationships permit economies in the

use of men as we build forces suited to our situation in the world today.

As will be seen from the Budget Message on January 21, the airpower of our

Navy and Air Force is receiving heavy emphasis.

Third, our armed forces must regain maximum mobility of action. Our

strategic reserves must be centrally placed and readily deployable to meet

sudden aggression against ourselves and our allies.

Fourth, our defense must rest on trained manpower and its most economical

and mobile use. A professional corps is the heart of any security

organization. It is necessarily the teacher and leader of those who serve

temporarily in the discharge of the obligation to help defend the Republic.

Pay alone will not retain in the career service of our armed forces the

necessary numbers of long-term personnel. I strongly urge, therefore, a

more generous use of other benefits important to service morale. Among

these are more adequate living quarters and family housing units and

medical care for dependents.

Studies of military manpower have just been completed by the National

Security Training Commission and a Committee appointed by the Director of

the Office of Defense Mobilization. Evident weaknesses exist in the state

of readiness and organization of our reserve forces. Measures to correct

these weaknesses will be later submitted to the Congress.

Fifth, the ability to convert swiftly from partial to all-out mobilization

is imperative to our security. For the first time, mobilization officials

know what the requirements are for 1,000 major items needed for military

uses. These data, now being related to civilian requirements and our supply

potential, will show us the gaps in our mobilization base. Thus we shall

have more realistic plant-expansion and stockpiling goals. We shall speed

their attainment. This Nation is at last to have an up-to-date mobilization

base--the foundation of a sound defense program.

Another part of this foundation is, of course, our continental transport

system. Some of our vital heavy materials come increasingly from Canada.

Indeed our relations with Canada, happily always close, involve more and

more the unbreakable ties of strategic interdependence. Both nations now

need the St. Lawrence Seaway for security as well as for economic reasons.

I urge the Congress promptly to approve our participation in its

construction.

Sixth, military and non-military measures for continental defense must be

and are being strengthened. In the current fiscal year we are allocating to

these purposes an increasing portion of our effort, and in the next fiscal

year we shall spend nearly a billion dollars more for them than in 1953.

An indispensable part of our continental security is our civil defense

effort. This will succeed only as we have the complete cooperation of State

Governors, Mayors, and voluntary citizen groups. With their help we can

advance a cooperative program which, if an attack should come, would save

many lives and lessen destruction.

The defense program recommended in the 1955 Budget is consistent with all

of the considerations which I have just discussed. It is based on a new

military program unanimously recommended by the Joint Chiefs of Staff and

approved by me following consideration by the National Security Council.

This new program will make and keep America strong in an age of peril.

Nothing should bar its attainment.

The international and defense policies which I have outlined will enable us

to negotiate from a position of strength as we hold our resolute course

toward a peaceful world. We now turn to matters which are normally

characterized as domestic, well realizing that what we do abroad affects

every problem at home--from the amount of taxes to our very state of mind.

INTERNAL SECURITY

Under the standards established for the new employee security program, more

than 2,200 employees have been separated from the Federal government. Our

national security demands that the investigation of new employees and the

evaluation of derogatory information respecting present employees be

expedited and concluded at the earliest possible date. I shall recommend

that the Congress provide additional funds where necessary to speed these

important procedures.

From the special employment standards of the Federal government I turn now

to a matter relating to American citizenship. The subversive character of

the Communist Party in the United States has been clearly demonstrated in

many ways, including court proceedings. We should recognize by law a fact

that is plain to all thoughtful citizens-that we are dealing here with

actions akin to treason--that when a citizen knowingly participates in the

Communist conspiracy he no longer holds allegiance to the United States.

I recommend that Congress enact legislation to provide that a citizen of

the United States who is convicted in the courts of hereafter conspiring to

advocate the overthrow of this government by force or violence be treated

as having, by such act, renounced his allegiance to the United States and

forfeited his United States citizenship.

In addition, the Attorney General will soon appear before your Committees

to present his recommendations for needed additional legal weapons with

which to combat subversion in our country and to deal with the question of

claimed immunity.

II. STRONG ECONOMY

I turn now to the second great purpose of our government: Along with the

protection of freedom, the maintenance of a strong and growing economy.

The American economy is one of the wonders of the world. It undergirds our

international position, our military security, and the standard of living

of every citizen. This Administration is determined to keep our economy

strong and to keep it growing.

At this moment we are in transition from a wartime to a peacetime economy.

I am confident that we can complete this transition without serious

interruption in our economic growth. But we shall not leave this vital

matter to chance. Economic preparedness is fully as important to the nation

as military preparedness.

Subsequent special messages and the economic report on January 28 will set

forth plans of the Administration and its recommendations for Congressional

action. These will include flexible credit and debt management policies;

tax measures to stimulate consumer and business spending; suitable lending,

guaranteeing, insuring, and grant-in-aid activities; strengthened old-age

and unemployment insurance measures; improved agricultural programs;

public-works plans laid well in advance; enlarged opportunities for

international trade and investment. This mere enumeration of these subjects

implies the vast amount of study, coordination, and planning, to say

nothing of authorizing legislation, that altogether make our economic

preparedness complete.

If new conditions arise that require additional administrative or

legislative action, the Administration will still be ready. A government

always ready, as this is, to take well-timed and vigorous action, and a

business community willing, as ours is, to plan boldly and with

confidence, can between them develop a climate assuring steady economic

growth.

THE BUDGET

I shall submit to the Congress on January 21 the first budget prepared by

this Administration, for the period July 1, 1954, through June 1955. This

budget is adequate to the current needs of the government. It recognizes

that a Federal budget should be a stabilizing factor in the economy. Its

tax and expenditure programs will foster individual initiative and economic

growth.

Pending the transmittal of my Budget Message, I shall mention here only a

few points about our budgetary situation.

First, one of our initial acts was to revise, with the cooperation of the

Congress, the Budget prepared before this Administration took office.

Requests for new appropriations were greatly reduced. In addition, the

spending level provided in that Budget for the current fiscal year has been

reduced by about $7,000,000,000. In the next fiscal year we estimate a

further reduction in expenditures of more than $5,000,000,000. This will

reduce the spending level over the two fiscal years by more than

$12,000,000,000. We are also reducing further our requests for new

appropriations.

Second, despite the substantial loss of revenue in the coming fiscal year,

resulting from tax reductions now in effect and tax adjustments which I

shall propose, our reduced spending will move the new budget closer to a

balance.

Third, by keeping new appropriation requests below estimated revenues, we

continue to reduce the tremendous accumulation of unfinanced obligations

incurred by the Government under past appropriations.

Fourth, until those claims on our Government's revenues are further

reduced, the growth in the public debt cannot be entirely stopped. Because

of this--because the government's bills have to be paid every month, while

the tax money to pay them comes in with great unevenness within the fiscal

year--and because of the need for flexibility to manage this enormous debt,

I find it necessary to renew my request for an increase in the statutory

debt limit.

TAXES

The new budget provides for a lower level of taxation than has prevailed in

preceding years. Six days ago individual income taxes were reduced and the

excess profits tax expired. These tax reductions are justified only because

of the substantial reductions we already have made and are making in

governmental expenditures. As additional reductions in expenditures are

brought gradually but surely into sight, further reductions in taxes can

and will be made. When budget savings and sound governmental financing are

assured, tax burdens should be reduced so that taxpayers may spend their

own money in their own way.

While we are moving toward lower levels of taxation we must thoroughly

revise our whole tax system. The groundwork for this revision has already

been laid by the Committee on Ways and Means of the House of

Representatives, in close consultation with the Department of the Treasury.

We should now remove the more glaring tax inequities, particularly on small

taxpayers; reduce restraints on the growth of small business; and make

other changes that will encourage initiative, enterprise and production.

Twenty-five recommendations toward these ends will be contained in my

budget message.

Without attempting to summarize these manifold reforms, I can here

illustrate their tendency. For example, we propose more liberal tax

treatment for dependent children who work, for widows or widowers with

dependent children, and for medical expenses. For the business that wants

to expand or modernize its plant, we propose liberalized tax treatment of

depreciation, research and development expenses, and retained earnings.

Because of the present need for revenue the corporation income tax should

be kept at the current rate of 52% for another year, and the excise taxes

scheduled to be reduced on April first, including those on liquor, tobacco,

gasoline and automobiles, should be continued at present rates.

Immediate extension of the Renegotiation Act of 1951 is also needed to

eliminate excessive profits and to prevent waste of public funds in the

purchase of defense materials.

AGRICULTURE

The well being of our 160 million people demands a stable and prosperous

agriculture. Conversely, every farmer knows he cannot prosper unless all

America prospers. As we seek to promote increases in our standard of

living, we must be sure that the farmer fairly shares in that increase.

Therefore, a farm program promoting stability and prosperity in all

elements of our agriculture is urgently needed.

Agricultural laws now in effect successfully accomplished their wartime

purpose of encouraging maximum production of many crops. Today, production

of these crops at such levels far exceeds present demand. Yet the laws

encouraging such production are still in effect. The storage facilities of

the Commodity Credit Corporation bulge with surplus stocks of dairy

products, wheat, cotton, corn, and certain vegetable oils; and the

Corporation's presently authorized borrowing authority--$6,750,000,000--is

nearly exhausted. Some products, priced out of domestic markets, and

others, priced out of world markets, have piled up in government hands. In

a world in which millions of people are hungry, destruction of food would,

of course, be unconscionable. Yet surplus stocks continue to threaten the

market and in spite of the acreage controls authorized by present law,

surpluses will continue to accumulate.

We confront two alternatives. The first is to impose still greater acreage

reductions for some crops and apply rigid Federal controls over the use of

the diverted acres. This will regiment the production of every basic

agricultural crop. It will place every producer of those crops under the

domination and control of the Federal government in Washington. This

alternative is contrary to the fundamental interests, not only of the

farmer, but of the Nation as a whole. Nor is it a real solution to the

problem facing us.

The second alternative is to permit the market price for these agricultural

products gradually to have a greater influence on the planning of

production by farmers, while continuing the assistance of the government.

This is the sound approach. To make it effective, surpluses existing when

the new program begins must be insulated from the normal channels of trade

for special uses. These uses would include school lunch programs, disaster

relief, emergency assistance to foreign friends, and of particular

importance the stockpiling of reserves for a national emergency.

Building on the agricultural laws of 1948 and 1949, we should establish a

price support program with enough flexibility to attract the production of

needed supplies of essential commodities and to stimulate the consumption

of those commodities that are flooding American markets. Transition to

modernized parity must be accomplished gradually. In no case should there

be an abrupt downward change in the dollar level or in the percentage level

of price supports.

Next Monday I shall transmit to the Congress my detailed recommendations

embodying this approach. They have been developed through the cooperation

of innumerable individuals vitally interested in agriculture. My special

message on Monday will briefly describe the consultative and advisory

processes to which this whole program has been subjected during the past

ten months.

I have chosen this farm program because it will build markets, protect the

consumers' food supply, and move food into consumption instead of into

storage. It is a program that will remove the threat to the farmer of these

overhanging surpluses, a program, also, that will stimulate production when

a commodity is scarce and encourage consumption when nature is bountiful.

Moreover, it will promote the individual freedom, responsibility, and

initiative which distinguish American agriculture. And, by helping our

agriculture achieve full parity in the market, it promises our farmers a

higher and steadier financial return over the years than any alternative

plan.

CONSERVATION

Part of our Nation's precious heritage is its natural resources. It is the

common responsibility of Federal, state, and local governments to improve

and develop them, always working in the closest harmony and partnership.

All Federal conservation and resource development projects are being

reappraised. Sound projects now under way will be continued. New projects

in which the Federal Government has a part must be economically sound, with

local sharing of cost wherever appropriate and feasible. In the next fiscal

year work will be started on twenty-three projects that meet these

standards. The Federal Government will continue to construct and operate

economically sound flood control, power, irrigation and water supply

projects wherever these projects are beyond the capacity of local

initiative, public or private, and consistent with the needs of the whole

Nation.

Our conservation program will also take into account the important role

played by farmers in protecting our soil resources. I recommend enactment

of legislation to strengthen agricultural conservation and upstream flood

prevention work, and to achieve a better balance with major flood control

structures in the down-stream areas.

Recommendations will be made from time to time for the adoption of:

A uniform and consistent water resources policy;

A revised public lands policy; and

A sound program for safeguarding the domestic production of critical and

strategic metals and minerals.

In addition we shall continue to protect and improve our national forests,

parks, monuments and other natural and historic sites, as well as our

fishery and wildlife resources. I hope that pending legislation to improve

the conservation and management of publicly-owned grazing lands in national

forests will soon be approved by the Congress.

NATIONAL HIGHWAYS

To protect the vital interest of every citizen in a safe and adequate

highway system, the Federal Government is continuing its central role in

the Federal Aid Highway Program. So that maximum progress can be made to

overcome present inadequacies in the Interstate Highway System, we must

continue the Federal gasoline tax at two cents per gallon. This will

require cancellation of the 1/2 cent decrease which otherwise will become

effective April 1st, and will maintain revenues so that an expanded highway

program can be undertaken.

When the Commission on Intergovernmental Relations completes its study of

the present system of financing highway construction, I shall promptly

submit it for consideration by the Congress and the governors of the

states.

POST OFFICE

It is apparent that the substantial savings already made, and to be made,

by the Post Office Department cannot eliminate the postal deficit. I

recommend, therefore, that the Congress approve the bill now pending in the

House of Representatives providing for the adjustment of certain postal

rates. To handle the long term aspects of this, I also recommend that the

Congress create a permanent commission to establish fair and reasonable

postal rates from time to time in the future.

III. HUMAN PROBLEMS

Along with the protection of freedom and maintenance of a strong and

growing economy, this Administration recognizes a third great purpose of

government: concern for the human problems of our citizens. In a modern

industrial society, banishment of destitution and cushioning the shock of

personal disaster on the individual are proper concerns of all levels of

government, including the federal government. This is especially true where

remedy and prevention alike are beyond the individual's capacity.

LABOR AND WELFARE

Of the many problems in this area, those I shall first discuss are of

particular concern to the members of our great labor force, who with their

heads, hearts and hands produce so much of the wealth of our country.

Protection against the hazards of temporary unemployment should be extended

to some 6 1/2 millions of workers, including civilian Federal workers, who

now lack this safeguard. Moreover, the Secretary of Labor is making

available to the states studies and recommendations in the fields of weekly

benefits, periods of protection and extension of coverage. The Economic

Report will consider the related matter of minimum wages and their coverage.

The Labor Management Relations Act of 3947 is basically a sound law.

However, six years of experience have revealed that in some respects it can

be improved. On January 11, I shall forward to the Congress suggestions for

changes designed to reinforce the basic objectives of the Act.

Our basic social security program, the Old-Age and Survivors Insurance

system, to which individuals contribute during their productive years and

receive benefits based on previous earnings, is designed to shield them

from destitution. Last year I recommended extension of the social insurance

system to include more than 10,000,000 additional persons. I ask that this

extension soon be accomplished. This and other major improvements in the

insurance system will bring substantial benefit increases and broaden the

membership of the insurance system, thus diminishing the need for Federal

grants-in-aid for such purposes. A new formula will therefore be proposed,

permitting progressive reduction in such grants as the need for them

declines.

Federal grant-in-aid welfare programs, now based on widely varying

formulas, should be simplified. Concrete proposals on fourteen of them will

be suggested to the appropriate Committees.

The program for rehabilitation of the disabled especially needs

strengthening. Through special vocational training, this program presently

returns each year some 60,000 handicapped individuals to productive work.

Far more disabled people can be saved each year from idleness and

dependence if this program is gradually increased. My more detailed

recommendations on this and the other social insurance problems I have

mentioned will be sent to the Congress on January 14th.

HEALTH

I am flatly opposed to the socialization of medicine. The great need for

hospital and medical services can best be met by the initiative of private

plans. But it is unfortunately a fact that medical costs are rising and

already impose severe hardships on many families. The Federal Government

can do many helpful things and still carefully avoid the socialization of

medicine.

The Federal Government should encourage medical research in its battle with

such mortal diseases as cancer and heart ailments, and should continue to

help the states in their health and rehabilitation programs. The present

Hospital Survey and Construction Act should be broadened in order to assist

in the development of adequate facilities for the chronically ill, and to

encourage the construction of diagnostic centers, rehabilitation

facilities, and nursing homes. The war on disease also needs a better

working relationship between Government and private initiative. Private and

non-profit hospital and medical insurance plans are already in the field,

soundly based on the experience and initiative of the people in their

various communities.

A limited Government reinsurance service would permit the private and

non-profit insurance companies to offer broader protection to more of the

many families which want and should have it. On January 18 I shall forward

to the Congress a special message presenting this Administration's health

program in its detail.

EDUCATION

Youth--our greatest resource--is being seriously neglected in a vital

respect. The nation as a whole is not preparing teachers or building

schools fast enough to keep up with the increase in our population.

The preparation of teachers as, indeed, the control and direction of public

education policy, is a state and local responsibility. However, the Federal

Government should stand ready to assist states which demonstrably cannot

provide sufficient school buildings. In order to appraise the needs, I hope

that this year a conference on education will be held in each state,

culminating in a national conference. From these conferences on education,

every level of government--from the Federal Government to each local school

board--should gain the information with which to attack this serious

problem.

HOUSING

The details of a program to enlarge and improve the opportunities for our

people to acquire good homes will be presented to the Congress by special

message on January 25.

This program will include:

Modernization of the home mortgage insurance program of the Federal

Government;

Redirection of the present system of loans and grants-in-aid to cities for

slum clearance and redevelopment;

Extension of the advantages of insured lending to private credit engaged in

this task of rehabilitating obsolete neighborhoods;

Insurance of long-term, mortgage loans, with small down payment for

low-income families; and, until alternative programs prove more effective,

Continuation of the public housing program adopted in the Housing Act of

1949.

If the individual, the community, the State and federal governments will

alike apply themselves, every American family can have a decent home.

VETERANS ADMINISTRATION

The internal reorganization of the Veterans Administration is proceeding

with my full approval. When completed, it will afford a single agency whose

services, including medical facilities, will be better adapted to the needs

of those 20,000,000 veterans to whom this Nation owes so much.

SUFFRAGE

My few remaining recommendations all relate to a basic right of our

citizens--that of being represented in the decisions of the government.

I hope that the States will cooperate with the Congress in adopting uniform

standards in their voting laws that will make it possible for our citizens

in the armed forces overseas to vote.

In the District of Columbia the time is long overdue for granting national

suffrage to its citizens and also applying the principle of local

self-government to the Nation's Capital. I urge the Congress to move

promptly in this direction and also to revise District revenue measures to

provide needed public works improvements.

The people of Hawaii are ready for statehood. I renew my request for this

legislation in order that Hawaii may elect its State officials and its

representatives in Washington along with the rest of the country this

fall.

For years our citizens between the ages of 18 and 21 have, in time of

peril, been summoned to fight for America. They should participate in the

political process that produces this fateful summons. I urge Congress to

propose to the States a constitutional amendment permitting citizens to

vote when they reach the age of 18.

CONCLUSION

I want to add one final word about the general purport of these many

recommendations.

Our government's powers are wisely limited by the Constitution; but quite

apart from those limitations, there are things which no government can do

or should try to do.

A government can strive, as ours is striving, to maintain an economic

system whose doors are open to enterprise and ambition--those personal

qualities on which economic growth largely depends. But enterprise and

ambition are qualities which no government can supply. Fortunately no

American government need concern itself on this score; our people have

these qualities in good measure.

A government can sincerely strive for peace, as ours is striving, and ask

its people to make sacrifices for the sake of peace. But no government can

place peace in the hearts of foreign rulers. It is our duty then to

ourselves and to freedom itself to remain strong in all those

ways--spiritual, economic, military--that will give us maximum safety

against the possibility of aggressive action by others.

No government can inoculate its people against the fatal materialism that

plagues our age. Happily, our people, though blessed with more material

goods than any people in history, have always reserved their first

allegiance to the kingdom of the spirit, which is the true source of that

freedom we value above all material things.

But a government can try, as ours tries, to sense the deepest aspirations

of the people, and to express them in political action at home and abroad.

So long as action and aspiration humbly and earnestly seek favor in the

sight of the Almighty, there is no end to America's forward road; there is

no obstacle on it she will not surmount in her march toward a lasting peace

in a free and prosperous world.

The Address as reported from the floor appears in the Congressional Record

(vol. 100, p. 62).

	Contents    Prev    Next    Last