m """" ' ,.sw - ; . ; ; . .. . - t rs IS TO PREPARE' Annual Message Pleads far Con certed and Efficient Action. FOR GREATER REGULAR ARMY Citizen Soldiery Part of Ms Plan Problem of Commercial Mobilization 8tated Disloyalty Among Cer tain Elements in Our Na tional Life Serious Menace to Peace. Washington, Dec. 7. President Wil ton today delivered the following mes sage to congress: Gentlemen of the Congress: Since I last had the privilege of addressing you on the state of the Union the war of nations on the other side of the sea, which had then only begun to disclose its portentous proportions, has extend ed its threatening and sinister scope until it has swept within its flame some portion of every quarter of the globe, not excepting our own hemi sphere, has altered the whole face of international affairs, and now presents a prospect of reorganization and re construction such as statesmen and peoples have never been called upon to attempt before. We have stood apart, studiously neu tral. It was our manifest djuty to do o. 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 and that some part of the great family of nations should keep the processes of peace alive, if only to prevent col lective economic ruin and the break down throughout the world of the in dustries by which its populations are fed and sustained. It was manifestly the duty of the self-governed nations of this hemisphere to redress, if pos sible, 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. American Nations Partners. In this neutrality, to which : they were bidden not only by their separate life and their habitual detachment from the politics of Europe but also by a cleat perception of international duty, the states of America have be come conscious of a new and more vital community interest and moral partnership in affairs, more clearly conscious of the many common sym pathies and interests and duties which bid them stand together. There was a time in the early days of our own great nation and of the re publics fighting their way to inde pendence in Central and South .Amer ica when the government of the Unit ed States looked upon itself as in some sont the guardian of the republics to the south of her as against any en croachments or efforts at political con trol 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 dis interested 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 peoples whose free dom of action we sought to protect, and without provoking serious miscon ceptions of our motives, and every thoughtful man of affairs must wel come' the altered circumstances of the new day in whose light we now stand, when there is no claim of guardian ship or thought of wards but, instead, a full and honorable association as- of partners between ourselves and our neighbors, in thefThterest of all Amer ica, north and soutly Our concern for the independence and prosperity of the states of Central and South America is not altered. We retain unabated the spirit that has inspired us through out the whole life of our government and which ps bo frankly put into words by President Monroe. We still mean always to make a common cause of national independence and of po litical liberty in America. Attitude Toward Mexico. , 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.I Her fortunes are in her own hands. But we have at least proved that we will not take ad vantage of her in her distress and Un dertake to impose upon her an order and government of our own choosing. .We will aid and befriend Mexico, but we will not coerce her; and our course with regard to her ought to be suffi cient proof to all America that we seek no political suzerainty, or selfish control. ' The moral is, that the states of America are not hostile rivals but co operating friends, and that their grow ing sense of community of interest, alike in matters political, and in mat ters economic, is likely to give them a new significance as factors in inter- '. national affairs and in the political History of the world. Drawing the Americas Together. There is, I venture to point out, an especial significance just now attach ing to this whole matter of drawing the Americas together in bonds of hon orable partnership and mutual advan P SDN WORD tage because of the economic readjust ments which the world must Inevi tably witness within the next genera tion, when peace shall have at last re sumed its healthful tasks. In the per formance of these tasks I believe the Americas to be destined to play their parts together. I am interested to fix your attention on this prospect now because unless you take it within your view and permit the full significance of it to command your thought I can not find the right light in wjjich to set forth the particular matter that lies at the very front of my whole thought as I address you today. I mean na tional defense. V No one who really comprehends the spirit of the great people for whom we are appointed to speak can fail to perceive that , their passion is for peace, their genius best displayed in the practice of the arts of peace. Great democracies are not belligerent. 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. Conquest and dominion are not in our reckoning, or agreeable to our principles. But just because we de mand unmolested development and the undisturbed government of our own lives upon our own principles of right' and liberty, we resent, from whatever quarter it may come, the ag gression we ourselves will not prac tice. We insist upon security in prose cuting our elf-chosen lines of nation al development. We do more than that. We demand it also for others. Question of Preparedness. Out of such thoughts grow all our polfcies. We regard war merely as a means of asserting the rights of a "peo ple against aggression. And we are as fiercely jealous of coercive or dic tatorial power within our own nation as of aggression from without. We will not maintain a standing army ex cept for uses whic"i are as necessary in times of peace as in times of war; and we shall always see to it that our military peace establishment is no larger than is actually and continu ously needed for the uses of days in which no enemies move against us. But we do believe in a body of free citizens ready and sufficient to take care of themselves and of the govern ments which they have set up to sejeve them. But war has never been a mere mat ter of men and guns. It is a thing of disciplined might. If our citizens are ever to fight effectively upon a sudden summons, they must know how mod ern fighting is 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 matter, must supply them with the training they need to take care of themselves and of it. It is with these ideals in mind that the plans of the department of war for more adequate national defense were conceived which will be, laid be fore you, and which I urge you to sanction and put into effect as soon as they can be properly scrutinized and discussed. They seem to me the essential first steps, and they seem to me for the present sufficient. Larger Army Plan. They contemplate an increase of the standing force of the regular army from , its present strength of 5,023 officers and 102,985 enlisted men of all services to a strength of 7,136 officers and 134,707 enlisted men, or 141,843, all told, all services, rank and file, by the addition of fifty-two companies of coast artillery, fifteen companies of engi neers, ten regiments of infantry, four regiments of field artillery, and four aero squadrons, besides 750 officers required for a great variety of extra service, especially the all important duty of training the citizen force of which I shall presently speak, 792 noncommissioned officers for serv ice x in drill, recruiting and the like, and the necessary quota of en listed men for the quartermaster corps, the hospital corps, the ordS nance department, arid other similar auxiliary services. These are the ad ditions necessary to render the army adequate for iffttpresent duties, duties which It has to perform not only upon our own continental coasts and bor ders and at bur interior army posts, but also in the Philippines, in the Hawaiian islands, at the Isthmus, and in Porto Rico. By way of making the country ready to assert some pkrt of its real power promptly and upon a larger scale, should occasion arise, the plan also contemplates supplementing the army by a force of 400,000 disciplined citi zens, raised in increments of 133, 000 a year throughout a period of three years. This it is proposed to do by a process of enlistment un der which the serviceable men of the country would be asked to bind them selves to serve with the colors for pur pose of training for short periods throughout three years, and to come to the colors at call at any time throughout an additional "furlough" period of three years. This force of 400,000 men -would be provided with personal accoutrements as fast as enlisted and their equipment for the field made ready to be sup plied at any time. They would be assembled for training at stated in tervals at convenient places in asso ciation with suitable units of the regular army. Their period of annual training would not necessarily exceed two months in the year. At least so much by the way of preparation for defense seems to me to bo absolutely imperative now. We cannot do less. The Naval Program. The program which will be laid be fore you by the secretary of the navy is similarly conceived. It involves only a shortening of the time within I. ' "7 i STRIKING POINTS IN PRESIDENT WILSON'S MESSAGE The department of war contemplates an increase of the standing force of the regular army from its present strength of 5,023 officers and 102,985 enlisted men, to 7,136 officers and 134,707 enlisted men, and 'supplementing the army by a force of 400,000 disciplined citizens. It will be tc the advantage of the country for the congress to adopt a comprehensive plan for putting the navy upon a final footing of strength and efficiency. , f The gravest threats against our natlonal peace and safety have been uttered within our own borders. It Is necessary for many weighty reasons of national efficiency and development that we should have a great merchant marine. It seems to me a clear dictate of prudent statesmanship and frank finance that in what we are now to undertake we should pay as we go. We should be following an almost universal example of modern gov ernment If we were to draw the greater part or even the whole of the revenues we need from the income taxes. 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. Our concern for the independence and prosperity of the states of Central and South America is hot altered. which plans, long matured shall be carried out; but it does make definite and explicit a program which has heretofore been only implicit, held In the minds of the two committees on naval affairs and disclosed in the de bates of the two houses but nowhere formulated or formally adopted. It seems to me very clear that it will be to the advantage of the country for the congress to adopt a, comprehen sive plan for putting the navy upon a final, footing of strength and effi ciency and to press that plan to com pletion within the next five years. We have always looked to the navy of the country as our first and chief line of defense; we have always seen it to be our manifest course of pru dence to be strong on the seas. Year by year we have been creating a navy which now ranks very high indeed among the navies of the maritime na tions. We should now definitely de termine how we shall complete what we have begun, and how soon. The program to be laid before you contemplates the construction within five years of ten battleships, six bat tle cruisers ten scout cruisers, fifty destroyers, fifteen fleet submarines, eighty-five coast submarines, four gun boats, one hospital ship, two ammuni tion ships, two fuel oil ships, and one regular repair ship. It is proposed that of this number we shall the first year provide for the construction of two battleships, two battle cruisers three scout cruisers, fiften destroyers, five fleet submarines, twenty-five coast submarines, two gunboas, and one hospital ship; 'the second year, two battleships, one scout cruiser, ten de stroyers, four fleet submarines, fifteen coast submarines, one gunboat, . and one fuel oil ship; the third year, two battleships, one battle cruiser, two scout cruisers, five destroyers, two fleet submarines, and fifteen coast submarines; the fourth year, two bat tleships, two battle cruisers, two scout cruisers, ten destroyers, two fleet sub marines, fifteen coast submarines, one ammunition ship, . and one fuel oil ship; and the fifth year, two battle ships, one battle cruiser, two scout cruisers, ten destroyers, two fleet sub marines, fifteen coast submarines, one gunboat, one ammunition ship, and one repair ship. More Men for the Navy. The secretary of the navy is asking also for the immediate addition to the personnel of the navy of 7,500 sail ors, ' 1,200 apprentice seamen, and 1,500 marines. This Increase would be sufficient to care for the ships which are to be completed with in the fiscal year 1917 and also for the number of men which must be put in training to man the ships which will be completed early in 1918. It is also necessary that the number of midship men at the Naval academy at Annap olis should be increased by at least three hundred If this full program should be car ried out we should have built or build ing in 1921, according to the estimates of survival and standards of classifi cation followed by the general board of the department, an effective navy consisting of 27 battleships, of the first line, 6 battle cruisers, 25 battleships of the second line, 10 armored cruis ers, 13 scout cruisers, 5 first-class cruisers, 3 second-class cruisers, 10 third-class cruisers, 108 destroyers, 18 fleet submarines, 157 coast submarines, 6 monitors , 20 gunboats, 4 supply ships, 15 fuel ships, 4 transports, 3 tenders to torpedo vessels, 8 ves sels of special types, and 2 ammuni tion ships. This would be a navy fit ted to our needs and worthy of our traditions. But armies and instruments of war are only part of what has to be con sidered If we are to consider the su preme matter of national self-sufficiency and security in all its aspects. There are other great matters which will be thrust upon our attention whether we will or not. There Is, for example, a very pressing question of trade and shipping involved in this great problem of national adequacy. It is necessary for many weighty rea sons of national efficiency and devel opment that we should have a great merchant marine. It is high time we repaired our mis take and resumed our commercial inde pendence on the seas, t . Need of Merchant Marine. . For It is a question of independ ence. If other nations go to war or seek to hamper each other's com merce, our merchants, it seems, are at their mercy, to do with asthey please.' We must use their ships, -and use them as they determine. We have not ships enough of our own. We cannot handle our own commerce on the seas. Our independence is provin cial, and is only on land and within our own borders. We are not likely to be permitted to use even the sb&s of other nations In rivalry of their own trade, and are without means to extend our commerce even where the doors are wide open and our goods desired. Such a situation is not to be endured. It is of capital import ance not only that the United States should be Its own carrier on the seas and enjoy the economic independence which only an adequate merchant ma rine would give it, but also that the American hemisphere as a whole should enjoy a like independence and self-sufficiency, if it is not to be drawn into the tangle of European affairs. Without such independence the whole question of our political unity and self-determination is very seriously clouded and complicated Indeed. Moreover, we can develop no true or effective American policy without ships of our own not ships of war, but ships of peace, carrying goods and canning much more; creating friend ships and rendering indispensable services to all interests on this side the water. Must. Provide Ships. With a view to meeting these pressing necessities of our commerce and availing ourselves at the earliest possible moment of the present un paralleled opportunity of linking the two Americas together in bonds of mu tual interest and service, an oppor tunity which may never return again if we miss it now, proposals will be made to the present congress for the purchase or construction of ships to be owned and directed by the govern ment similar to those made to the last congress, but modified in some essen tial particulars. I recommend these proposals to you for- your prompt ac ceptance 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 real ized by those for whom trade is wait ing but who can find no conveyance; for their goods. I am not so much in-rt terested in the particulars of the pro gram as I am in taking immediate ad vantage of the great opportunity which awaits us If we will but act in this emergency. The plans for the armed forces of the nation which I have outlined, and for the general policy of adequate preparation for mobilization and de fense, involve of course very large ad ditional expenditures of money ex penditures which will, considerably ex ceed the estimated revenues of the government. It is made my duty by law, whenever the estimates of ex penditure 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 particularly 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. State of the Finances. On the thirtieth of June last there was an available balance in the gen eral fund of the treasury of $104,170, 105.78. The total estimated receipts for the year 1916, on the assumption that the emergency revenue measure passed by the last congress will not be extended beyond its present limit, the thirty-first of December, 1915, and that the present duty of one cent per pound on sugar will be discontinued after the first of May, 1916, will be S670.365.500. The balance of June last and these estimated revenues come, therefore, to a grand total of $774, 435,605.78. The total estimated dis bursements for the present fiscal year, including $25,000,000 for. the Panama canal, $12,600,000 for probable de ficiency . appropriations, and $50, 000 for miscellaneous debt redemp tions, will be $753,891,000; and the balance In the general fund of the treasury will be reduced to $20,644, 605.78. The emergency revenue act, if continued, beyond its present time lim itation, would produce, during the half year then remaining, about $41,000, 000. The duty of one cent per pound on sugar, if continued, would produce during the two months of the fiscal year remaining after the first of May, about $15,000 000, These two sums, amounting together to $56,000,000, if added to the revenues of the second half of the fiscal year, would yield the treasury at the end of the year an available balance of $76,644,605.78. The additional revenues required to carry out the program of military Tand naval preparation of which I have spoken, would, as at present estimated, be for the fiscal year 1917, $93,800,000. Those figures, taken with the figures for the present fiscal year which I have already given, disclose our finan cial problem for the year 1917. As suming that the taxes imposed by the emergency revenue act and the pres ent) duty on sugar are to be discontin ued! and that the balance at the close of the present fiscal year wiil be only $20,644,605.78, that the disbursements for, the Panama canal will again be about twenty-fire millions, and that the additional expenditures for the army and navy are authorized by the congress, the deficit in the general fund of the treasury" on the thirtieth of June, 1917, will be nearly two hun dred and thirty-five millions. To this sum at least fifty millions should be added to represent a safe working bal ance for the treasury, and twelve mil lions to include the usual deficiency estimates in 1917; and these additions would make a total deficit of some two hundred and ninety-seven millions. If the present taxes should be continued throughout this year and the next, however, there would be a balance in the treasury of some seventy-six and a half millions at the end of the pres ent fiscal year, and a deficit at the end of the next year of only some fifty millions, or, reckoning in sixty-two millions for deficiency appropriations and a safe treasury belance at the end of the year, a total deficit of some one hundred and twelve millions. The obvious moral of the figures is that it ifc a plain counsel of prudence to con tinue all of the preesnt taxes or their equivalents, and confine ourselves to the problem of providing $112,000,000 of new revenue rather than $297,000, 000. New Sources of Revenue, How shall we obtain the new reve nue? It seems to me a clear dictate of prudent statesmanship and frank finance that in what we are now, I hope, to undertake, we should pay as we go. The 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 taxation. To what sources, then, shall we turn? This is so peculiarly a question which the gentlemen of the house of representatives are expected under the Constitution to propose an answer to that you will hardly expect me to do more than discuss it in very gen eral terms. We should be following an almost universal example of 'mod ern government if we were to draw the greater part or even the whole of the revenues we need from the in come taxes. By somewhat lowering the present limits of exemption and the figure at which the surtax shall begin to beimposed, and by increasing, step by step throughout the present gradu ation, the surtax 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 1917 without any where making the burden unreason ably or oppressively heavy. The pre cise reckonings are fully and accurate ly set out in the report of the secre tary of the treasury which will be im mediately laid before you. And there are many additional sources of revenue which can justly be resorted to without hampering the in dustries of the country or putting any too great charge upon individual exr penditure. A one per cent tax per gallon on gasoline and naptha would yield, at the present estimated pro duction, $10,000,000; a tax of 50 cents per horse power on automobiles and internal explosion engines, $15,000, 000 ; a stamp tax on bank checks, probably-$18,000,000; a tax of 25 cents per ton on pig Iron, $10,000,000; a tax of 50 cents per ton on fabricated Iron and steel, probably $10,000,000. In a country of great industries like this it ought to be easy to distribute the bur dens of taxation without making them anywhere bear too heavily or too ex clusively upon any one set. of "persons or undertakings. What is clear is, that the industry of this generation should pay the bills of this generation. I have spoken to you today, gentle men, upon a single theme, the thor ough preparation of the nation to care for its own security and to make sure of entire freedom to play the impartial role in this hemisphere and in the world which we all believe to have been, providentially assigned to it. I have had in my mind no thought of any immediate or particular danger arising out of our relations with other nations. We are at peace with all the nations of the world, and there is reason to hope that no question in controversy between this and other governments will lead to any serious breach of amicable relations, grave as some differences of attitude and policy have been and may yet turn out to be. I am sorry to say that the gravest threats against our national peace and safety have been uttered within our own borders. There are citizens of the United States, I blush . to admit, born under other flags, but welcomed under our generous naturalization laws to the full freedom and oppor tunity of America, who have poured the poison of disloyalty into the very arteries of our national ife; who have sought to bring the authority and good name of our government into contempt, to destroy our Industries wherever they thought it effective for their vindictive purposes to strike at them, and to debase our politics to the uses of 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 recent generations out of virile foreign stocks; but it is great enough to have brought deep disgrace upon 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 dis tempers. America never witnessed anything like this v . beamed it into H8 own cw;- at out Of errant y l&p.n .. elements of that IHUe nation that In a hi, l'" Shi? It. very llt8 t0 fre, " .U entanglement that Z 2 fortunes of the oMer - --outuuara here-tv u of such origins and such V at of allegiance would JS uvu6u reaction aw lu ment and peonle whft uj and nurtured them this proud country one, bed Of Eurnn0on 7 "uie I fission, a while ago such a thin, w seemed incredible. Because ? asnamea to prepare for it 7 were suspicious of ourselves n comrades and neighbors' ' p --j mucuiuie rnin p- v IV COTT1 ft ahmit oj auu we are adequate federal laws tr. j i I urge you to enact such laws earliest possible .moment and fe?,?1 in doing so I am iinr,-, .... ""U nothing less than save the h. M self-respect of the nation. , Such tures of passion, disloyalty and archy must be crushed out Th not many, but they are """"b"""1-. i-iana of our nnn should close over them at once. Th "cu ulB l aestroy pr0pen they have entered into print-r;-.. against the neutrality of the-gove merit thev have CMii.t ' , ouugm, 0 pry j . every confidential transaction of th. government in order to serve interest! alien to our own. it is possible deal with these things very effectually I need not suggest the terms in which they may be dealt with. Are Disgrace to the Nation. I wish that it could be said that only a few men, misled by mistaken sentiments of allegiance to the govern ments unaer wnicn tney were born had been guilty of disturbing the self' possession and misrepresenting the temper and principles of the country during these days of terrible war, when it would seem that every man who was truly an American would instinctively make it his duty and hij pride to keep the scales of judgment even and prove himself a partisan o'f no nation but his own. But it cannot There are some men among us, and many resident abroad who, though born and bred in the United States and calling themselves Americans, have so forgotten themselves and their honor as citizens a to put their passionate sympathy with one or the other side in the great European con flict above their regard for the peace and dignity of the United States. They alscr preach and practice disloyalty. No laws, I suppose, can reach, cor ruptions of the mind and heart; MI should not speak of others without also speaking of these and expressing the even deeper humiliation and scorn which every self-possessed and thoughtfully patriotic American must feel when he thinks of them and of the discredit they are daily bringing upon us. While we speak of the preparation of the- nation to make sure or her security and her effective power w must not fall into the patent error of ' . . . . .u supposing mat ner real sirungi comes from armaments and mere saf& " guards of written law. What is more important is, that th industries and resources of the cou& try should be available and ready foi mobilization. The transportation problem Is an exceedingly serious and pressing on in tbis country. There has . from time to time of late been reason lu tcai mat uux i.v - not much longer be able to cope with it successfully, as at present equipped and co-ordained. I suggest that would be wise to provide for a com mission of inquiry to ascertain by i thorough canvass of the whole que tion whether our laws as at present framed and administered are as serv iceable as they might be in the solu tion of the problem. It is obviowW problem that lies at the very founds tion df our efficiency as a people. Such an Inquiry ought to draw out every circumstance and opinion worth con sidering and we need to know all Bidei of the mlatter if we mean to do any- . . . . . m J 1 Totr4cl.lH0&. n . . 1 .a I - RailrnadS. No one, , I am sure, would wish to take any backward step. Tbe.rgw tion of the railways of the country DJ federal commission has had admirable results , and has fully Justified tM hopes and expectations of those ty whom the policy of regulation wai originally proposed. The question not what should we undo? . It 19 whether there is anything else we can do that would supply us with effect" means, in the very process of regui tion. for bettering the conditions tuv der which the railroads are operate" and for making them more useful eerr ants of the country as a whole, seems to me that it might be the pan of wisdom, therefore, before further legislation in this field is attempted, to look at the whole problem of cc-ord tion and efficiency in the full light of J fresh assessment of circumstance an opinion, as a guide to dealing? with t. several parts of it. For what we are seeking now what thought of- in my mind Is the single this message, is national efficiency au security. We serve a great w. .tw We should serve it in the spirit peculiar genius. It is the genu is common men for self-government, i dustry, justice, liberty and peace. should see to it that it lacks no ment, no facility or vigor of la make it sufficient to play its part . energy, safety and assured ucce' this we are no partisans but her ? And prophets of a new age. 7