President Wilson Reads Message to 64th Congress
WASHINGTON, D. C Following Is
President Wilson's address to the Joint
session of Congress, which met Mon
day at noon in the 60th convention:
Gentlemen of the Congress; Since I last
had the privilege of ad&reitinff you on the
tate of the Union the war of nations on
the other side of the sea, which had then
only begun to disclose its portentous pro
portions, has extended Its threatening and
slnlater scope until It has swept within' Us
flame some portion of every quarter of the
globe, not excepting our own hemisphere,
has altered the whole face of International
affairs and now presents a prospect of re
organization and reconstruction such as
statesmen and peoples have never toeen
called upon to attempt before.
We have stood apart, studiously neutral.
It was our manifest duty to do so. Not
only did we have no part or interest in the
policies which seem to have brought the
conflict on; it was necessary, if a universal
catastrophe was to be avoided, that a limit
should be set to the sweep of destructive
war that some part of the great family of
nations should keep the processes of peace
alive, If only to prevent collective economic
ruin and the breakdown throughout the
world of the Industries by which its popu
lations are fed and sustained. It wai man
ifestly the duty of the self-governed natloni
of this hemisphere to redreis, If possilble,
the balance of economic loss and confusion
In the other, If they could do nothing more.
In the day of readjustment and recuperation
we earnestly hope and believe that they can
be of Infinite service.
In this neutrality, to which they were
bidden not only by their separate life end
their habitual detachment from the policies
of Europe, but also by a clear perception of
International duty,- the states of America
have become conscious of a new and more
vital community of Interest and moral part
nership In affairs, more clearly conscious
of the many common sympathies and inter
ests and duties which bid them stand to
gether. Attitude Toward Neighbors Unselfish.
There was a time in the early days of our
own great Nation and of the republics fight
ing their way to Independence in Central
and South America when the Government of.
m unuea ma tea luuiiea upon linen ns 111
some sort the guardian of the republics
to the south of her as against any encroach
ments or efforts at political control from
the other side of the water; felt it its duty
to play the part even without Invitation from
them; and I think that we can claim that
the task -was undertaken with a true and
disinterested enthusiasm for the freedom
of the Americas and the unmolested self
government of her independent peoples. But
It was always difficult to maintain such a
role without offense to the pride of the peo
pies whose freedom of action we sought to
protect, and without provoking serious mis
conceptions of our motives, and every
thoughtful man of affairs must welcome the
altered circumstances of the new day in
whose light we now stand, when there Is no
claim of guardianship or thought of wards,
but, Instead, a full and honorable association
as of partners between ourselves and our
neighbors, In the Interest of all America,
north and south. Our concern for the In
dependence and prosperity of the states of
Central and tioutn America is not aiterea.
We have been put to the test In the case
of Mexico, and we have stood the test.
Whether we have benefited Mexico by the
course we have pursued remains to be seen.
Her fortunes are In her own hands. But we
have at least proved that we will not take
advantage of her in her distress and under
take to lmDOBe upon ner an order ana gov
ernment of our own choosing. Liberty Is
often a fierce and intractable thing, to wnici
no bounds can be set, and to which no
bounds of a few men's choosing ought ever
to be set. Every American who has drunk
at the true fountains or principle and tra
dltlon must subscribe without reservation
to the high doctrine of the VWInla BUI of
Eights, which In the great q s in which
our Government was set umYwas every
where amongst us accepted as e creed of
free men. That doctrine is, ,n it govern
ment Is, or ought to be, lnstlt V d for the
common benefit, protection and curity of
the people, nation, or community"; that
"of all the various modes and forms of
government that is the best which is capa
ble of producing the greatest degree of hap
piness and eafety, and is most effectually
secured against the danger of maladminis
tratlon: and that, when any government
shall be found Inadequate or contrary to
these nurooses. a majority of the com
m unity hath an Indubitable, Inalienable, and
indefeasible right to reform, alter
abolish It, in such manner as shall be judged
most conducive to the public weal." We
have unhesitatingly applied that herolr
principle to the case of Mexico, and now
hopefully await the rebirth of the troubled
republic, which naa so mucn 01 wnicn
purge Itself and so little sympathy from any
outside quarter In the radical but necessary
process.
Pan-Americanism la Defined.
The moral Is, that the states of America
are not hostile rivals but co-operating
friends, and that their growing sense of
community of interest, alike in matters po
litical and In matters economic. Is likely tfl
give them a new significance as factors In
International affairs and in the political
hlstorv of the world. It -presents them
In a very deep and true sense a unit in
world affairs, spiritual partners, standing
together because thinking together, quick
with unmmnn flvmnathles and common
Jdeals. Separated they are subject to all the
ormi (tiirrentii of the conrusea policies oi
wmiri nf hostile rivalries: united in spirit and
purpose they cannot be disappointed of their
peaceful destiny.
This Is pan-Amerlcanlsm. It has none of
trie spirit of empire in It. It is the em
bodiment, the effectual embodiment, of the
spirit of law and independence and liberty
and mutual service.
A very notable body of men recently met
In the City of Washington, at the Invitation
Dim no uin guwoio ui una v v.
deliberations are likely to be looked back to
as marking a memorable turning point in
the history of America. They were repre
ontativa annirPHmon nf thm several lnde
pendent states of this hemisphere aVd were
amhiaii tn A Julias tne financial ana com
medial relations of the republics of the
two continents which nature and political
fnrtiina hnv in intimately linked togeiner.
I earnestly recommmend to your perusal the
reports of their proceedings and of the ac
tions of their committees. You will get
from thm I think, a fresh conception ot
the east and intelligence and advantage
with which Americans of both continents
may draw together in practical co-operation
and of what the material foundations of
this hopeful partnership of interest must
conBlit of how we should build them and
of how necessary it Is that we should
hasten their founding.
Great Democracies Not Belligerent,
No one who really comprehends the spirit
of the great people for whom we are ap
pointed to apeak can fall to perceive that
their passion is for peace, their genius best
displayed in the practice of the arts of
peace. Great democracies are not belliger
erent. They do not seek or desire war.
Their thought is of individual liberty and
of the free labor that supports life and the
uncensored thought that quickens it. Con
quest and dominion are not in our reckon
ing, or agreeable to our principles. But
Just because we demand unmolested de
velopment and the undisturbed government
of eur own lives upon our own principles
of right and liberty, we resent, from what
ever quarter It may come, the aggression
we ourselves will not practice. We insist
upon security In prosecuting our self-chosen
lines Or National ueveimnui. uw
than that. We demand It also for others.
We do not confine our enthusiasm for in
dividual liberty and free National develop
ment to the incidents and movements of af
fairs which affect only ourselves.
Out of such thoughts grow all our poli
cies We regard war merely as a means of
asserting the rights of a people against
aggresssion. And we are as fiercely Jealous
of coercive or dictatorial power within our
"wu uauon as 01 aggression rrom without.
We will not maintain a standing army ex
cept for uses which are as necessary in
times of peace as in times of war; and we
nau aiwayi see to it that our military
peace establishment is no la r it pi- than is
actually and continuously needed for the
uses of days in which no enemies move
against us. But we do believe in a body
of free citiaens ready and sufficient to take
care or tnemseives and of the governments
which they have set up to serve them. In
our constitutions themselves we have com
manded that "the right of the people to
keep and bear arms shall not be Infringed,"
and our confidence has ben that our safety
In times of danger would lie in the rising
of the Nation to take care of Itself, as the
farmers rose at Lexington.
But war has never been a mere matter of
men and guns. It Is a thing of disciplined
mignt. II our citizens are ever to fight
effectively upon a sudden summons, they
must know how modern fiKhtlns: la done.
and what to do when the summons comes
to render themselves immediately available
and Immediately effective. And the Gov
ernment must be their servant in this mat
ter, must supply them with the training
they need to take care of themselves and
of it. The military arm of their Govern
ment, which they will not allow to direct
them, they may -properly use to serve them
and make their Independence secure and
not their own Independence merely but the
rights also of those with whom they have
made common cause, should they also b
put in jeopardy. They must be fitted to
play the great role In the world, and par
ticularly In this hemisphere, for which they
are qualified by principle and by chastened
ambition to play.
Immediate Defense Flans Outlined.
It Is with these Ideals In mind that the
plans ot the Department of War tor more
adequate National defense were conceived
which will be laid before you, and which i
urge you to sanction and put Into effect as
soon as they can be properly scrutinised and
discussed. They seem to me the essential
first steps and they seem to me for the
present sufficient.
They contemplate an Increase of the
standing force of the Regular Army from
Us present strength of 6023 officers and
102.886 enlisted men of all services to i
strength of 7186 officers and 134,707 en
listed men, or 141,848 ail told, an services
rank and file, by the addition of 62 com
panles of coast artillery, 15 companies of
engineers, ten regiments of infantry, four
regiments of field artillery, and four aero
squadrons, besides 760 officers required for
a great variety of extra service, especially
the ill-important duty of training the cm
ten force of which I shall presently speak,
7tt2 non-commissioned officers for service In
drill, recruiting and the like, and the neces
sary ouota of enlisted men for the Quarter
master Corps, tne hospital corps, tne uru
nance Department and other similar auxil
iary services. These are the additions neces
sary to render the Army adequate for its
present duties duties which It has to per
form not only upon our own continental
coasts and borders and at our Interior Army
posts, but also in the Philippines. In the
Hawaiian Islands, at the Itnmus, ana in
Porto Rico
Ttv wnv nf makine the country ready to
assert some part of its real power promptly
and upon a larger scale, should occasion
arise, the plan also contemplates supple
menting the Army by a force of 400,000
disciplined citizens, raised In increment of
133.000 a year throughout a perioa oi uirw
years. This It is proposed to do by a process
of enlistment under which the serviceable
men of the country wouia ue astiea xo imhu
thenselves to serve with the colors for pur-,
poses of training for short periods through-.
out three years, and to come to the colors
at call at any time throughout an additional
"furlough" perioa or. inree years. in
of 400,000 men would be provided with per
sonal accoutrements as fast as enlisted and
their equipment for the field made ready
to be supplied at any time, may wouia ue
assembled for training at stated intervals
at convenient places in association with
suitable units of the Regular Army. Their
Derlod of annual training would not neces
sarily exceed two months In the year.
At least so mucn my wj ui
for defense seems to me to be absolutely
Imperative now. We cannot do less.
Navy Programme Similarly Conceived.
TYi a nmffPOmmA which Will be laid before
you by the Secretary of the Navy la similar
ly conceived. It involves only a shortening
of the time within which plans long ma
tuned shall be carried out; but it does
make definite and explicit a programme
which has heretofore been only implicit, held
in the minds of the committee on navai ai
fairs and dleclosed in the debates of the
two houses, but nowhere formulated or for
mally adopted. It seems to me very clear
that It will be to the advantage of the
country for the Congress to adopt a com
prehensive plan for putting tne wavy upun
a final footing of strength and efficiency
and to press that plan to completion within
the next five years. We have aiwayi looked
to the Navy of th country as our firet
and chief line of defense; we have always
seen it to be our manifest course of pru
dence to be strong on the seas. Tear by
year we have been creating a Navy which
now ranks very high Indeed among the
navlee of the maritime nations. We should
now definitely deetrmine how we shall com
plete what we have begun, and how soon.
The programme to be laid before you con
templates the construction within five years
of 10 battleships, S battle cruisers, 10 scout
cruisers, 50 destroyers, 15 fleet submarines,
85 coast submarines, 4 gunboats, 1 hospital
ship, 2 ammunition ships, 2 fuel oil ships
and 1 repair ahip. It Is proposed that ot
this number we shall the first year pro
vide for the construction of 2 battleships,
2 battle cruisers, 3 scout cruisers, 15 destroy
Ara. R flout submarines. 25 coast submarines,
2 gunboats and 1 hospital ship; the second
vear. 2 battleships. 1 scout cruiser, 10 de
stroyers 4 fleet submarines. 16 coast sub
marines, 1 gunboat and 1 fuel oil ship; the
third year, 2 battleships, i Datue cruiser,
2 scout cruisers, & destroyers, 2 fleet sub
marines and 16 coast submarines; the fourth
vear. 2 battleships. 2 battle cruisers, 2 scout
cruisers, 10 destroyers, 2 fleet submarines,
15 coaBt submarines, 1 ammunition ship and
l fuel oil shin: and the fifth year. 2 battle
ships. 1 battle cruiser. 2 scout cruisers, 10
ri-AittrnvAra. t fleet submarine. IB coast sub'
marines, 1 gunboat, 1 ammunition ship and
1 repair ship.
The Secretary of the Navy Is asking also
for the immediate addition to the personnel
of the Navy of 7500 sailors, 260O apprentice
seamen and 1500 marines. , This increase
would be sufficient to care for the ships
which are to be completed within the fiscal
year 1917 and also for the number of men
which must be put in training to man the
snips which will be completed eany in isis.
It Is also neceesarv that the number of mid-
shlomen at the Naval Academy at Annapolis
should be Increased by at least 200 in order
that the force of officers should be mors
rapidly added to; and authority Is asked
to appoint, for engineering duties only, ap
proved graduates of engineering colleges,
and for service in the aviation corps a cer
tain number of men taken from civil life.
If this full programme should be carried
out we should have built or building in
1921, according to the estimates of survival
and standards of classification followed by
the General Board of the Department, an
effective Navy consisting of 27 battleships,
of the first line; battle cruisers, 25 battle
ships of th-e second line; 10 armored cruis
ers, 13 scout cruisers, fr first-class cruisers,
3 second-class cruisers, 10 third-class cruisers,
108 destroyers, IB fleet submarines, 167 coast
submarines, I monitors, 20 gunboats, tour
supply ships, 15 fuel ships, 4 transports, 1
tenders to torpeao vessels, vessels oi spe
cial types, and two ammunition ships. This
would be a Navy fitted to our needs and
worthy of our traditions.
Merchant Marine Indispensable,
But armies and Instrument of war afe
only part of what has to be considered if we
are to consider the supreme matter of Na
tional self-sufficiency and security in all its
aspects. There are other great matters
which win be thrust upon our attention
Sugar Issue Is Serious.
San Joan With the largest sugar
crop in the island's history to be har
vested, and with the grinding season
barely a month away, sugar men are
facine a serious labor trouble. A gen
eral demand is being made by Santiago
Iffesias. head of the local labor organ
ization and representative in Porto
Rico of the American federation of
bor, for an eight-hour day and a dollar
wage for all agricultural laborers, bo
far only one sugar mill, Guanica Cen
tral, at Ensenada. has commenced
grinding.
Colorado Drys Win Out.
Denver The authority of Colorado
to enact and enforce state-wide pro
hibition was upheld by the State Su
preme court in a unanimous opinion.
The court held that cities governed un
. der special charter were without au
thority to continue traffic in Intoxicat
ing liquors after January 1, 1916, when
the state-wide prohibition becomes ef
fective. George Q. Richmond, deputy
city attorney, who had charge of Den
ver's case, stated the city commission-
whether we will or not. There is, for ex
ample, a very pressing question of trade
and shipping Involved in this great problem
of National adequacy. It Is necessary for
many weighty reasons of National efficiency
and development that we should have a
great merchant marine. The great merchant
fleet we once used to make us rich, that
groat body of sturdy sailors who used to
carry our flag into every sea, and who were
tne pride and often the bulwark of the
Nation, we have almost driven out of ex
istence by Inexcusable neglect and Indiffer
ence and by a hopelessly blind and pro
vincial policy of so-called economlo protec
tion. It le high time we repaired our mis
take and resumed our commercial Inde
pendence on the seas.
For it Is a Question of Independence. If
other nations go to war or seek to hamper
each other's commerce, our merchants, it
seems, are at their mercy, to do with as they
please. We must use their ships, and use
them u they determine. We have not ships
enough of our own. We cannot handle our
own commerce on the seas. Our Independ
ence le provincial, and is only on land and
within our own borders. We are not likely
to be permitted to use even the shins of
other nations in rivalry of their own trade,
and are without means) to extend our com
merce ven where the doors are wide open
and our goods are desired. Such a position
is not to be endured. It Is of capital Impor
tance not only that the United States
should be its own carrier on the seas and
enjoy the economic Independence which only
an adequate merchant marine would give It,
but also that the American hemisphere as a
whole should enjoy a like lndependsnoe and
self-sufflency. if It Is not to h A rn.wn
into the tangle, of European affairs. With
out such independence the whole question
of our political unity and self-determina
tion is very seriously clouded and complicat
ed indeed.
Moreover, we can develon nn trim or ef
fective Amrlcan policy without ships of our
uwn not snips or war, out ships of peace,
carrying goods and earrylng much more:
creatine: frlendshlns and rendering Indis
pensable services to all interests on this side
the water. They must move constantly
back and forth between the Americas. They
are the only shuttles that can weave the
aencate fabric of sympathy, comprehension,
confidence and mutual deoendence In which
we wish to clothe our policy of America for
Americans.
The task of building up an adequate mer
chant marine for America private capital
muse ultimately undertake and achieve.
It has undertaken and achieved every other
nice lasic amongst us in the past, with ad
mirable enterprise. Intelligence and vigor;
and It seems to me a manifest dictate of
wisdom that we should promptly remove
every legal obstacle that may stand In the
way of this much-to-be-deslred revival of
our old Independence and should facilitate
in every possible way the building:, nurchase.
and American registration of ships. But cap
ital cannot accomplish this arreat task of
sudden. It must embark upon it by degrees,
as ine opportunities or trade develop. Some
thing must be done at once; done to open
routes and develop opportunities where they
are as yet undeveloped done to open the ar
terlea of trade where the currents have not
yet learned to run especially between the two
American continents, where they are. sin
gularly enough, yet to be created and quick
ened; and it is evident that only the Gov
ernment can undertake such beginnings and
assume the Initial financial risks. When the
risk has passed and private capital begins
to find Its way in sufficient abundance Into
these new channels, the Government may
withdraw.
Ship Purchase Flan Declared Urgent.
With a view to meeting these pressing ne-'
cessltles of our commerce and availing our
selves at the earliest possible moment of
the present unparalleled opportunity of Unk
ing the two Americas together in bonds of
mutual Interest and service, an opportunity
which may never return again If we miss
It now, proposals will toe made to the pres
ent Congress for the purchase or construction
of ships to be owned and directed by the
Government similar to those made to the last
Congress, but modified In some essential par
ticulars. I recommmend these proposals to
you for your prompt acceptance with the
more confidence because every month that
has elapsed since the former proposals were
made has made the necessity for such action
more and more manifestly Imperative. That
need was then foreseen; it is now acutely
felt and everywhere realized by those for
whom trade Is waiting, but who can find no
conveyance for their goods, I am not so
much interested in the particulars of the
programme as I am in taking immediate
advantage of the great opportunity which
awaits us if we will but act n this emer
gency. In this matter, as In all others, a
spirit of common counsel should prevail,
and out of it should come an early solution
or tnia pressing proDiem.
There is another matter which seems to
me to he very Intimately associated with the
question of National safety and preparation
for defense. That is our policy towards the
Philippines and the people of Porto Rico
Our treatment of them and their attitude
towards us are manifestly of the first con
sequence In the development of our duties
In the world and in getting a free hand to
perform those duties. We must be free from
every unnecessary burden or embarrassment
and there Is no better way to be clear of em
barrassment than to fulfill our promises and
promote the interests of those dependent on
us to trie utmost. mils for the alteration
and reform of the government of the Phil-
lpplnea and for rendering fuller political
Justice to the people of Porto Rico were sub
mitted to the 63d Congress. They will be
submitted also to you. 1 need not particu
larize thir details. Tou are most of you
already familiar with them. But I do rec
ommend them to your early adoption with
the sincere conviction that there are few
measures you could adopt which would aiore
serviceably clear the way for the great poli
cies by -which we wish to make good, now
and always, our right to lead in enterprises
of peace and good will and economic and po
litical freedom.
The plans for the armed forces of the
Nation which I have outlined and for the
general policy of adequate preparation for
mobilization and defense, Involve of course
very large additional expenditures of money
expenditures which will considerably ex
ceed the estimated revenues of the Govern
ment. It Is made my duty by law, when
ever the estimates of expenditure exceed the
estimates of revenue, to call the attention of
the Congress to the fact and suggest any
means of meeting the deficiency that it
may be wise or possible for me to suggest.
I am ready to believe that It would be my
duty to do so in any case; and I feel partic
ularly bound to speak of the matter when it
appears that the deficiency will arise directly
out of the adoption by the Congress of meas
ures which I myself urge It to adopt. Allow
me, therefore, to speak briefly of the present
state of the Treasury and of the fiscal
problems which the next year will probably
disclose.
Additional Revenue Required.
On the 30th of June last there was an
available balance In the general fund of the
Treasury or 1U4,17U,1U5.?H. Tne total esti
mated receipts fir the year 1016, on the as
sumption that the emergency revenue meas
ure passed by the last Congress will not be
extended beyond its present limit, the 81st
of December, 1915, and that the present duty
of 1 cent per pound on sugar will be fllscon
tlnued after the 1st of Hay, 1910, will be
$670,365,500. The balance of June last and
these estimated revenues come, therefore, to
a grand total of 774,&35ieurj.78. The total
estimated disbursements for the present fiscal
year, Including $25,000,000 for the Panama
Canal, $12,000,000 for probable deficiency ap
propriations, and 50,000 for miscellaneous
debt redemptions, will be 1753,891,000; and
the balance In the general fund of the
Treasury will be reduced to $20,644. 605.78.
The emergency revenue aet, if continued be
yond it present time Ilmtatlon, would pro
duce, during the half year then remaining,
about 141,000,000. The duty of 1 cent per
pound of sugar, if continued, would produce
during the two months of the fiscal year
remaining after tne rirst or May, aoout io.-
000,000. These two sums, amounting to
gether to $56,000,000, If added to the reve
nues of the second half of the fiscal year,
would yield the Treasury at the end of the
year an available balance of $70,044,008.78.
The additional revenues required to carry
out the programme of military nnd naval
preparation of which I have spoken, would,
as at present estimated, be for the fiscal year
1U1T, $U8.bUO,4MM. These figures, taken with
the figures for the present fiscal year which
I have already given, disclose our financial
problem for the year 1917. Assuming that
the taxes imposed by the emergency revenue
act and the present duty on sugar are to be
discontinued, and that the balance at the
close of the present fiscal year wilt be only
$20,644,600.78, that the disbursements for
the Panama canal win again be about iw.-
000,000, and that the additional expenditures
nr the Army and Navy are authorized by the
Congress, the deficit In the general fund of
the Treasury on the 80th of June, 1917, will
be nearly 235,000,000. To IhLs sum at least
$50,000,000 should be added to represent e
safe working balance for the Treasury, and
$12,000,000 to Include the usual deficiency
estimates In 1917; and these additions would
make a total deficit of some $297,000,000', If
the present taxes should be continued
throughout this year and the next, however
there would be a balance in the Treasury
of some $16,500,000 at the end of the present
riscal year ana a deficit at the end of tne
next year of only some $50,000,000, or, reck
oning in $02,000,000 for deficiency approprla
turns and a safe Treasury balance at the end
of the year, a total deficit of some 112,
000,000. The obvious moral of the figures Is
that It is a plain counsel of prudence to con
tinue all of the present taxes or their equiv
alents, and confine ourselves to the problem
of providing $112,000,000 of new revenue
rather than $297,000,000,
Internal Taxation Preferred to Bonds.
CREW OF CHINESE WARSHIP IN
MUTINY FIRES ON OTHER SHIPS
Shanghai The crew of the Chinese
cruiser Chao-ho mutinied Sunday and
opened fire on two other warships and
the arsenal. The fire was returned,
the engagement lasting an hour. Sev
eral shots fell in the foreign conces
sions. Apparently the outbreak has
been confined to the Chao-ho.
Conflicting accounts of the nature of
the outbreak are current. It appears,
however, that at 2 p. m. Sunday, 20
men set forth from the foreign settle
ment in a launch and went alongside
the Chao ho, which was lying opposite
the Kian-Nan arsenal.
On the arrival of the launch the
crew of the Chao-ho mutined, appar
ently, by prearrangement. At about
6 o'clock the mutineers opened fire on
the arsenal, on the cruiser Hai-Chi and
the Tune-Chine.
The Hai Chi and Tung Ching replied
and there was lively cannonading of
light and heavy guns for an hour. At
least half dozen three-pound shells fell
CAPT. FRANZ VON PAPEN
SEIZED AMERICAN SHIPS MAY
BE CONVERTED TO BRITISH USE
first Steps Will Be Decided on
Trip Across Atlantic
Washington, D. C The State de
partment Wednesday made formal rep
resentations to the foreign office of
London concerning reports that vessels
belonging to the Amercan Trans-Atlantic
company were about to be
requisitioned by the British admiralty.
In diplomatic parlance the communi
cation is known as a request for in
formation concerning the facts, be
cause all of the data in the possession
of the department were presented by
the owners nf the vessels. While the
statements are accepted as true, the
I department desires to have the British
P.. 1 : n . l i .i Ti ; s
uiiin vermeil ov Lne rureiirn uiiicb.
The communication in effect amounts Kany lOilSIStS 01 14U FfifSOnS. and
to ft protest ana notice tnat tne unitea
States will not tolerate such high
handed methods. In the event that
Great Britain admits that she purposes
to take steps to requisition the ships,
the communictaion will be . followed
immediately by a sharp protest against
the entire procedure.
How shall we obtain the new revenue?
We are frequently reminded that there are
many mllllona ot bonds which the Treasury
is authorized under existing law to sell to
reimburse the sum paid out ot current reve
nues for the construction of the Panama
Canal; and it Is true that bonds to the
amount of approximately 1222,000,000 are
now available for that purpose. Prior to 1913
$184, 631,980 of these bonds had actually been
sold to recoup the expenditures at the isth
mus; and now constitute a considerable item
of the public debt. But I, for one, do not
believe that the people of this country ap
prove of postponing the payment of their
bills. Borrowing money le short-sighted
fin an co. It can be Justified only when per
manenl things are to 'be accomplished which
many generations will certlnly benefit by and
which It seems hardly fair that a single
generation should pay for. The objects we
are now proposing to spend money for can
not be so classified, except in the sense that
everything wisely done may be said to be
done in the interest of posterity as well as
in our own. It seems to me a clear dictate
of prudent statesmanship and frank finance
that 'in what we are now, I hope, about to
undertake we should pay as we go. 'ine
people of the country are entitled to know
Just .what burdens of taxation they are to
carry, and to know from the outset, now.
The new bills should be paid by internal tax
ation. To what sources, then, shall we turn?
This Is so peculiarly a question which the
gentlemen of the House of Representatives
are expected under tne uonsmuuon io yru
pose an answer to that you will hardly ex
pect me to do more than discuss it In very
general terms. We should be following an
almost universal example of modern govern,
ments if we were to draw the greater part
or even the whole of the revenues we need
from the income taxes, By somewhat lower
ing the present limits of exemption and the
figure at which the surtax shall begin to be
imposed and by increasing, step toy step
throughout tne present graduation, tne ui
tax itself, the income taxes as at present
apportioned would yield sums sufficient to
balance the books of the Treasury at the end
of the fiscal year 11)17 without anywhere
making the' burden unreasonably or op
pressively heavy. The precise reckonings
are fully and accurately set out In the report
of the Secretary of the Treasury which will
be immediately laid beiore you.
And there are many additional sources of
revenue which can justly be resorted to
without hampering the industries of the
country or putting any too great charge upon
individual expenditure. A tax of 1 cent per
gallon on gasoline and naptha would yield,
at the present estimated production, $10,
000,000; a tax of 60 cents per horse power
on automobiles and internal explosion en
gines 115,000,000; a stamp tax on bank
cheques, probably $18,000,000; a tmt of 26
cents per ton on pig iron, $10,000,000; a tax
of 25 cents per ton on fabricated Iron and
steel, probably flO.000,000. In a country of
tnAtrm iikn this it ousht to be easy
to distribute the burdens of taxation without
making them anywhere bear too heavily or
..ni..Divatv nnnn anv one set of nersons
iindertaklnKS. What Is clear is. that the
industrv of this generation should pay the
bills of this generation.
No Immediate Danger In Blind.
t havA SDOken to you today, gentlmen,
upon a single theme, the thorough prep
aration of the Nation to care for its own
security and to mane sure oi enure nee
tn niav tha lmDartlal role in thle benr
isphere and in the world whioh we all be
i tn h v been providentially assigned
to it. I have had in my mind no thought
nt nv immediate oF'narticu ar danger aris
tne- nut nf our relations wun ouiwr ubuu.
We are at peace with all the nations of the
world, and there Is reason to hope that no
question in controversy between this ana
other governments wm ieaa o any ortwu
breach of amicable relations, grave as some
differences of attitude and policy have b&en
and mav vet turn out to be. I am sorry to
say that the gravest inreata against ui
National peace and eafety have been ut
tered within our own borders. There are
ritixAtii of the United States. I blush to ad
mlt, born under other flags but welcomed
under our generous naturalisation laws to
the full freedom and opportunity of Amerca,
who have poured the poison of disloyalty
into the verv arteries of our National life
rho have sought to bring the authority and
srood name of our uovernment into con
tempt, to destroy our industries wherever
they thought it effective tor their vindictive
purposes to strike at them, and to debase our
politics to the uses ot foreign intrigue. Their
number Is not great as compared with the
whole number of those sturdy hosts by
which our Nation has been enriched in re
cent srenerations out of virile foreign stocks:
but It is great enough to have brought deep
dlflzrace UDon us and to have made it neces
sary that we should promptly make use of
processes of law by which we may be
purged of their corrupt distempers. America
nevr witnessed anything like this before.
While we speak of the preparation of the
Nation to make sure of her security and her
effective power we must not fall Into the
patent error of supposing that her real
strength comes from armaments and mere
safeguards of written law. It comes, of
course, from hr people, their energy, their
success in their undertakings, their free
opportunity to use the natural resources of
our great home land and of the lands out
side our continental borders which look to
us for protection, for encouragement, and
for assistance In their development; from
the organization and freedom and vitality ot
our economlo life, The domestic questions
which engaged the attention of the last
Congress are more vital to the Nation in
this It time of test than at any other time.
We cannot adequately make ready for any
trial of our strength unless we wisely and
promptly direct the force of our laws Into
these all-important fields of domestic action.
For what we are seeking now, what In
my mind Is the single thought of this
message, le National efficiency and security.
We serve a great Nation. We should serve
it in the spirit of its peculiar genius. It is
the genius of common men for self-government,
industry, justice, liberty and peace.
We should see to it that it lacks no instru
ment, no facility or vigor of law, to make
It sufficient to play Its part with energy,
safety and assured success, in this we are
no partisans but heralds and prophets of a
new age.
L ..." N. "
L .4
FORD PEACE SHIP
SAILS FOR EUROPE
NEUTRAL COUNTRIES WILL BE VISITED
Includes 54 Reporters Three
"Movie" Men On Board.
CAPT. WILLIAM S. SIMS
Capt. Franz von Papen, military at
tache of the Germay embassy in Wash'
ington, whose recall is asked by the
State department
in the foreign concessions. The city
and country-side were thrown into
panic.
After the firing ceased the Cha-ho
remained at anchor, keeping watch on
the other warships.
Pekin The government announces
that it has received a telegram from
General Yang at Shanghai saying that
the Chinese cruiser Chao-ho has been
recaptured from its crew, which mu
tined Sunday night and opened fire on
two other warships and the Kaing-Nan
arsenal.
It is said that a rebel land move
ment against the arsenal was repulsed
and that peace has been restored.
1800 Claims Admitted.
Ardmore, Okla. With the expira
tion of the time limit for filing claims
for arbitration of damages growing
out of the gasoline explosion here Sep
tember 27, it was learned that approx
imately 1800 claims, totaling more
than $750,000, have been adjusted out
of court by the local arbitration com
mittee and representatives of the
Atchison, Topeka & Sana Fe Railway
company. Responsibility for the ex
plosion was assumed by the railway
company to obviate the delays and ex
pense of court action.
Clarke Is for Ship Bill.
Washington, D. C. Prospects for
the administration merchant marine
bill at the coming session of congress
were enhanced when it became known
that Senator Clarke, of Arkansas, who
led the Democratic revolt against the
ship purchase bill in the last session,
looked with favor on the new ship bill
proposed by government heads. Sen
ator Clarke let it be known that he
would not oppose the new merchant
marine measure drafted after confer
ences between Secretaries McAdoo and
Redfield
New York The Scandinavian-Amer
ican line steamer Oskar II sailed from
its pier in Hoboken at 2 p. m. Satur
day, carrying 140 persons who, as
guests of Henry Ford, the Detroit
manufacturer, are going to Europe in
an effort to induce neutral nations to
take step towards stopping the war.
Mr, ford's guests include 63 persona
directly interested in the peace move
ment, 64 reporters for newspapers and
magazines, three moving-picture men
and 20 employes of Mr. Ford's person
al staff.
The party, designated by Mr. Ford as
the peace expedition, Is due to reach
Christiana, Norway, its first stopping
place, about December 14. The only
other stopping places already decided
on are Stockholm, Sweden; Copen
hagen, Denmark, and The Hague, Hol
land. It is probable, Mr. Ford said.
that the party will visit other Europe
an capitals aB the progress of the
peace plan seems to require.
Mr. Dord received William J.
Bryan, ex-secretary of state, who ar
rived from Miami, Fla., to talk about
the trp.
Mr. Bryan issued a statement re
peating his former assertion that he
approved of Mr. Ford's plans and that
he would later join the party at The
Hague.
"When you arrive in Europe what
Capt. William 8. 81ms, U. 8. N., will will be your first steps to carry out
command the great battleship Nevada, your plans to co-operate with the neu-
whlch recently underwent her trial tral nations toward stopping the Eu-
teitt off Rookland, Me.
In the event that the unofficial ad
vices should be verified or any attempt
made on the part of Great Britain to
use an American vessel it is believed
the action would precipitate a aitua-
ropean war?" Mr. Ford waB asked.
"This is a point that we will consid
er on the way across the ocean," Mr.
Ford replied. We have not decided
upon any definite steps yet.
All we know is that the fighting
nations are sick of war, that they
tion much more grave than any that wnt.t0 8top Bn.t?,a' th? ,are
has confronted this government In its rrJ r " " -
dealings with Downing street,
The law experts of the department
are unacquainted with any precedent,
or any theory of law or reason that
would support Buch a course. They
step in and offer mediation. Some
people in this world have seen fit to be
skeptical about the success of our
plans, but when we return I think they
will change their views. Any action
nuuiu duuuvii DiiLit n uniiDD, Attn. . , , . . ,
appear to believe that Great Britain is taken toward peace is worthy of sup-
pressed for ships just at present and port, if the action .s based on good
that she would be assisted greatly bv Jent and conv.ction."
using American vessels, pending the ..,., n ,
lira ma uemanus neurn
of German Embassy Attaches
adjudication of their cases before prize
courts.
Italy Now Pushing Against
Austrian front at Three Points
Washington, D. C. Immediate
withdrawal of Captain Karl Boy-Ed
and Captain Franz von Papen, respec-
London-With the retreat of the Uvely naval and mUitary attaches of
greater part of the Serbian army
across the Albanian frontier, the Blow'
ness of the operations against Monte'
negro and in Southern Serbia, owing
the German embassy, has been request
ed by the State department.
In making formal announcement of
this action, Secretary Lansing said the
Porto Ricans Aroused.
New York News reached here from
San Juan, Porto Rico, that the public
is much exercised over the coming
electrocution at Sing Sing prison of
Antonio Ponton, said to be the first
Porto Rican ever convicted of murder
outside of the island. Ponton was con
demned to die December 20 for the
murder of Bessie Eromer, a school
teacher. Petitions signed by thous
ands of Porto Rieans Including many
school children, are on their way to
this country in the custody of Father
Echavarria, a Porto Rican priest.
Ireland More Populous.
Dublin The latest census figures
for Ireland show an increasing popula
tion. This, for Ireland, is an agree
able novelty. For the quarter ended
September 80 last, the number of
births in Ireland was 27,779, a rate of
20.8 per thousand, and the deaths 14,
670, a rata of 13.4 per thousand.
There were only 3611 emigrants, so
that the net increase is 9598. It is the
derceace in emigration which turned
the scale. The situation might be more
era would accept the Supreme court's i satisfactory were it not for the heavy
ruling. death rate of children under one year.
Bryan Cited in Libel Suit.
Mew i oak William J. Bryan was
served at the Biltmore hotel with an
order signed by Justice Ciegerich re
quiring him to appear to be examined
about transactions connected with the
sale by the United States to Greece of
two battleships. Mr. Bryan will be
asked whether any secrets of fire con
trol, aiming or other control of gun or
war vessel sold by the United States
to Greece were confided to Greece. The
order was obtained in connection with
a libel suit brought by Petros Tatanis
against a Greek newspaper.
Appropriation Held Down.
Washington, D C The fact that
the secretary of treasury recommends
an appropriation for only $160,000 to
begin the construction of the new Port
land postoffice indicates the depart
ment's belief that two years will be
required to finish the building which
will probably be begun in February.
An appropriation of $150,000 was
made last session and this will be used
to meet fint payments, but with the
amount now asked this will be only
half the authorized cost of the structure.
Federal Probe Proves Fatal.
New York The Federal prosecution
of the New York, New Haven & Hart
ford and its directors accomplished the
"practical ruin" of that railroad,, in
the opinion of Charles S. Mellen, at
the trial of former directors of the
road on the charge of criminal viola
tion of the Sherman law. It was from
fear, he said, that this would be the
result of the inquiry into New Haven
affairs that he got Lewis C. Ledyard
to see President Taft and the attorney
general, and induce them to limit the
inquiry to the Grand. Trunk deal.
Serbian Army Re-forming.
Paris "Better days for Serbia are
coming soon," says the former minis
ter at Paris and recently appointed
Serbian minister of finance, in an in
terview in tne Temps. "(Jur army
which has been retiring for two full
months without respite, is re-forming.
The retirement was forced because the
allies were not ready with sufficient
troops. These troops are now landing.
They will have the co-operation of the
Serbian army of 200,000. We shall
again and again have victories such as
those of last December."
Wheat Jumps 6 Cents.
Chicago Under the impetus of im
mense buying on the part of big
houses, wheat prices gained more than
5 cepts a bushel in some cases just be
fore the close Saturday, as compared
with prices earlier in the day. De
cember wheat closed at $1,161. Re
ports that Canadian wheat could be
sold only to Great Britain or her allies
were circulated, and there were Phila
delphia reports of an immense foreign
business in flour and wheat.
Two Passenger Trains Hit.
St. Louis A fireman was killed,
several were injured seriously and
more than a score of passengers suf
fered minor injuries in a head-on col
lision between two passenger trains of
the Illinois Central lines at Lenzburg,
111., 25 miles southeast of here, Tues
day. About 150 other passengers
were badly shaken up. The accident
was caused, it is declared, by a switch
improperly set.
Navy Ships Called Home.
Washington, D. C All ships of the
United States navy not on special
service in foreign waters will be in
their home ports on Christmas Day,
and as many of the men and officers as
possible will have holiday shore leave.
Orders were issued requiring the ves
sels to report to home ports December
20 and remain until January 6.
. More Pay for Soldiers Urged.
Berlin, via London Representa
tives of the Centrium party have intro
duced in the budget committee of the
Reichstag providing for a 60 per cent
increase in the pay of German soldiers.
Privates in the German army now re
ceive 30 pfennigs (7 cents) a day.
tn thA wintrv wButhnr. nrt thn h- attacnes naa rendered tnemseives per-
n. nf nv ttminr nnBratinnB on the 8ria on grata to the United States by
western and eastern fronts, interest in improper activities in connection with
the military side of the war is now navaI a"d military matters, which was
transferred to the Austro-Italian fron- 8h0wn by evidence in the trial of the
tinr Thn Kinr Victor F.mnmiBl'n Hamburg-American omciais lor con-
troops are carrying on an energetic spiracy against the United States in
offensive against the Austrians. New York.
The fighting on this front has been The secretary acted with the full
thA nmi anatninpH unrt firr.it. nf thn approval of President Wilson, who is
whole war. For weeks the Italians understood to have determined tnat
have been attacking the Austrian the United States shall be nd of fore
bridgeheads and mountain positions, Bn offlcial8 who makeL themselves ob
along the Isonzo river, and are slowly noxioU8 by activity harmful to the
but surely drawing their nets around 0881 mieresia oi mo imnun.
Tolmino, Gorizia and Doberdo. ln6 Btate department maae its re-
Their attacks have been repeated quest tnree uay ueiuro vuo ywuibl ui
Mmo .ftor firm. BTBrW nn.iHnn. W6 JNeW 1 OHC COUrt, tnrOUgnOUnt
which had been moBt carefully pre- von Bernstorff, the German ambassa
pared, and, while the Austrians report dor. Announcement of the fact was
that rnnak nf thB auannlta hnva hoAn withheld as a matter of courtesy to
repulsed, their accounts are considered Germany and to prevent the charge
here to have been so worded as to pre- UB'"K ' JU'J
pare the public for their retirement " warship supply consp rators had in
from Gorizia at least. any wav been influenced in reaching a
Thin fnr thn t.imn hAinir. in TtHlfa Verdict.
contribution to the Balkan "Derations
of the allies, for it keeps a large force Greece Presents Bill.
of Austrians busy and it compels them Paris Asserting that it has lost
continually to bring up reinforcements more than 600,000 francs through the
which could be successfully employed nt tem o settiement on inter-
against tne Montenegrins and erDians. national poBtal order8 from America,
ine sermans, unless louoweu into the Greek government has presented a
Albania, in time will probably reap- bm for that amount to the Washing
pear as a rejuvenated army, for it is ( mon. it ;. nn,ari th.t
said that 250,000 of them, including the American government declines to
uge there and that they have saved all
their mountain batteries and a portion
of their field guns.
Governor Declines Invitation,
Honolulu In declining an invitation
received from Henry Ford to become a
member of the party soon to leave
New York on a peace mission to Eu
rope, Governor L. V. Pinkham sent
the following cablegram to Mr. Ford
"It would be quite unlawful for me
pay.
The American government has been
paying balances by cnecKS on fans.
The Greek government contends it is
a loser because of the decline in ex
change.
6000 Civil Belgians Slain,
Paris The Belgian government an
nounces that the total number of civil
ians killed in Belgium since its occu
pation by the Germans has reached
more than 6000. In the province of
to absent myself from this mid-Pacific Brabant 897 victims have been re-
outpost of the United States. We in corded, and in Liege more than 1000.
Hawaii are isolated and we are first ln Luxemburg about 1200 civilians
for a complete preparedness which have been reDorted shot, in Namur
would anaDie us to place our trust tn more than 1800. and in Hainauit
our own nation and not force us to
rely upon the good will of others."
Federal Income Grows
Washington, D. C." Ordinary re
ceipts of the United States treasury in
November were about $12,000,000
about 300.
Figures for Antwerp, Limburg and
Flanders are believed to be relatively
high.
Bigger Navy Yard Wanted.
Washington, D. C Secretary Dan-
more than in the same month last year, lets, of the navy, has decided to rec-
wh lie the increase in ordinary dis- ommend to congress mat an auurouna-
bursements for the same period was tion be made to equip the Puget Sound
approximately $3,000,000. Most of navy yard so it can enter upon the con-
the increase in receipts was in Internal struction of battleships in the near
revenue, which totaled $34,466,700. or future. He also win asK tnat anotner
more than $10,000,000 above Novem- yard on the Atlantic coast be so equip-
ber. 1914. Customs receipts were ped. Bids recently received from pri-
$17,681,218, an increase of about vate yards for construction of battle
$760,000. The total of ordinary re- ships convinced Mr. Daniels that the
eelpts was about $56,000,000. government can build more cheaply.