Speech Transcript:

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 1947 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.