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Proclaims the Doctrine J tween Nations of the \ cates Preparedne States for Washington, Dec. 7.-A doctrine or Pan-Americanism-of full partner- j ship between tho nations of thc wes tern iicm(sphere in world affairs was proclaimed by President Wilson yesterday in his third annual address Ot congress, the theme of which was 1 preparedness by tho United States to j defend not only its own independence ; but the rightH of those with whom lt has made common cause. The mes sage was read by tho president to the senate and house assembled in joint session in the chamber ol tue haute. This message was the longest Mr. Wilson has ever delivered to congress. I He began willi a statement that since! bo addressed congress: Tho full text of the message fol lows: Gentlemen ol' the Congress: Situe I | last had tho privilege Of addressing: you on the state of the union tho war 1 of nations on the ot:or side of the sea, which had then only begun to ; disclose Us portentous proportions, has extended its threatening and sinis ter scope until it luis swept within its flnmo some portion of every quarte*.* of tho globe, not excepting our own hemisphere, has altered u:o whole ' face- )f international uffaira, and now j presents n prospect of reorganization and reconstruction such ne statesmen ' nnd peoples havo never been called 1 upon to attempt, before. - j We have stood apart studiously neut ia), lt was our manifest duty to do eb. . Not only did wo have no part or Interest in the polloica which sti.in to have brought tho conflict on; it waa hecossary, If a universal catas-. trop .e Was to bu avoided, that o limit should be set to thc swoop of destruc tive war and, that some part ot tho great family of nations nliould heep tho processes of peace alive, If only to prevent collective economic ruin ard ttl3 breakdown- throughout the world of tho industries .-by v/h'.ch Ita populations aro fed and sustained. It was manifestly *f.e duty \if tho selt ??ovornod ' nations of this hemisphere to redress, . if possible,, tue b;vlancs of economic loss: and contusion in the other, if they could do nuthing more. In* the day of readjustment and recu peration we ehrhostty hope and bc llovo that they can be'of Infinite ser vice. In this , neutrality, to w'vleh' they wero bidden not only by their separato Ufo and their habitual detachment from the politics of Europe but also by a clear perception'of international duty, tho states of America have be come conscious of a new and moro vital community of Interest and moral partnership in affair's, more Clear!v conscious of the many. common sym pathies and intero&ta and duties wino., bid them-stand together. Neutrality Dlfllcblt. There was o tim? In' the o'arly daya of our own /great* nation- and of tue republics fighting their way to indo pendehco in Central and South Ameri ca when the government ot tho Unit ed States looked upon Itself as in Bomo sort Itae guardian of the repub lics to'the south bf her as against any eneros'dunen ta or efforts, at . political, control from' tho other sido of th? wa ter;- felt lt .Ita duty to play tho part even without invitation from them; and I think that wo ' can cia i ai timi tue task was undertaken with a true nnd difdntcfosted enthusiasm for the freedom of thc Americas and tho r.n n??l?ircv? Self goYernuiehi ?? lier inde pendent peoploa. 'But it was always ?llQcult to maintain, such a role with out offence to thc pride of the peoples whose freedom Of action we sought, to protect, and without provoking' serious misconceptions of our motives, and' every tlioughful roan of uffalrs must welcome tho altered dr-au in stances of the'now day lu whoso light, we now; stand; when thero Ia no chum of guardianship or thought of wards but, Instead, a full and honourablo as sociation us of partners between our se Ive a and our neighbors* in thb.iator est of <ill America, north ?hd south. Our concern for v-o indopondenr.e and -prosperity'of tho states ot Central and South Am or lea Ja not altered. . We . retain miaba ted tho spirit that has iusplred ,us throughout the wholo Ufo of our. government and which -was so .frankly -pvt into words by Provident . Monroe. We Btill mean always to make a common cause of national In dependence and of political liberty In America. But that , purpose ls now .better understood so far as it con cerns ourselves. It is known not to bo n. ??iflah' purpose. It ls'known to ,'h'ave in7 lt no thought of taking ad-, vantage .ot any government in " this hci?lsph?r?, or play??g *.ts political, fortunes for our own benefit. AU the* governmehta ot America stand, so >?a~v^s TPTS sro. coTtoorncd, upon ? loot ing:- of genuine-equality und tte ques tioned indepont/oftco. V ?*e-Test af Mexico;';-' Wo hav-o" beera put-to' the test ia the caso' iof Mexico, and wo have. stood tho, test. Whether we have benoflted Mexico by?tao course wo (havo pur sued .remains to > be speny Her.'for tunesere. In hcrVowVha^da. Bwt wb have iV^Tenst'itrorbd, that wo VllV hot -?'tak$ advantageof her ih her d?itreas and .undertake'' to Impos? upon' 'lier ah brder ?nd - government of- bur /own e>,?oslft?. c. Liberty, is often1 a .fierce 'idtdi intractable thing, to which no boifflfaa^chnT' b^ set, and tb whi?h no bounds bf a few men's ?faooslpg ought ever; tb he set.*-1 Every American who ba9'drunk at *ta?''frue 'f?thtilhs ot ../principle- and- tradition must suh ' rist??PI^'jiiirlmbhfcv re^^atten to ? the ; highV doctrine - Af tho Virginia ?11 of rights, which in the great days in fr* r v HT I ILA 1 k of Full Partnership Be Vestern World-Advo c? By the United ? Defense. which our government wa? ?ct up was everywhere amongst us accepted ur, tho creed of free men. That doc trine is, "That government is, or onglit to he, instituted for tho eom ? mon benefit, protection .and sec urity of the people, nation, or community," that "of nil the various modes and forms of government that ia tito best i which ls capable cf producing thc greatest degree of happiness und sufc ty, and Is most cru-ctuully seeured against the dungor of maladministra tion; and that; when my, government Bhail bi? fomid Inadequate or contrary to these purposes, a m:.JorIty of the community hath nu Indubitable, In ! alienable, and Ind?fe?slble right to re lorin, niter, or abull.ni in such mau nor as shall be Judged met condu cive lo the nubile weal." Wo have unhesitatingly applied ?lint heroic principle to the case of Mexico, und now hopefully await thc rebirth of thu* troubled republic, which had KO mutti Of which tb purge itself and so little sympathy from any outside quarter in the radical but necessary process. We will aid and befriend .Mexico, but we win not coerce hor; and our course! with rr:;ard to her ought to be BU - clent proof to all America that we seek no political suzerainty or selfish control. T-.-iO moral 1B, that tho sta i of America are not hostile rivals but ?ooperatlng friendk, und that their growing sense of community of inter est, alike In matters political mid in mutters ?conomie, ls likely to give them a new significance as factors in international affairs and in tho poli tical history of the world. It pre sents them as In a very deep and truo seii8e a unit in world affairs, spiritual partners, standing together because thlhlllrig together, quick with common ?tympathlen and cornu: JU .ideals. Separated Uley are subject to all tho eroat? curront.3 o' the con fu?ed politics of a world'.of hostile rivalries; united In spirit and purpose they cannot bo disappointed of their peaceful destiny. l'a n-A ui er ic'! n Is ;n. This ls- Pan-Am?ricanism. It han none of. the Bpirlt of umpire in lt. It is tho embodiment, tho effectual em bodiment, of tho spirit of law and In dependence and liberty and mutuul service ? ' '. A very notable body of men recent ly met In'the city of Washington, at tho invitation and as tho guests of this govornmont, -whose deliberations aro likely to bo looked back to as marking a memorable turning point in tho history of America. They were representative spokesmen of tho sev eral indopendont ?tates ol ?lila hemH 'phero'and were assembled-to discuss tllb financia) -and cOnimiircmi re?.??oiia of the republics of tho two continents wOlch nature and political fortune ? have so intimately linked, together. I ? earnestly recommend to your p?rimai ! tho reports of their proceeding* and , of tho actions of their committees. 'You will get from them, I think, a fresh conception of the case and In telligence and advantage with which Americans of bom continents may draw together in practical cooperation and of what tho material foundations of this hopeful partnership of interest ! must consist-of how wo should build ! them and of how necessary lt ls that wo should hasten moir building.. Thora ls, I venturo to polri out. -an especial slgn'flcnne.i> Just now attach ing iv tais whole runtier of drawing thc America:; together in bonds ot honourable partnership and mutual ndviantago because of tho economic readjustments which bho world must inevitably," witness within thc next goner?tlon, when poace sin ll have at last resumed Un healthful tasks. Tn 1 the porfprmqneo,or those tusks I be lieve tho Americas to. be destined to play ti.Dlr. p?rto' together' I am in terested to fix your attention on this ; prospect now because unities you take | It\ Within*'you> j vie v* and permit tho i fiiil ''significance' of "it .to command .your, thought I cannot find the right light in which tb 6et. forth tho partl ? cular matter mat lies at tho- very iront of my wholo thoughts as I ad dress you . today, I mean national I defense, - Spirit ctn'(front People. No ono'who really comprehends tho spirit of tho great poople for whom wo ' aro' appointed to speak can fail to perceive that thoir passion ls for poace, their genius, best displayed in the practice of tho arts of neace. Great democracies aro not boUigirent;' Ti;oy db not scold, or desiT war. Their, thought ls of individual, liberty and of tho-ffco labour that supports life and the uncensored thought. . that I quickens it. Conquest and dominion; aro. not in our reckoning, or ogreo? abie .to our /principles. But Just bes. cause :r?> demand unmriestod develops ment and' tho uhdlst?rbcu go\*\?rnm?ot 'ot our own lives upon our own prin ciples of right and liberty, we resent, from: whatever quartor it may come, tho aggression wo ?oursulvea will not practice. Wo insist upon security in .prpsectii.ti^g-our .Belf:chosen* lines . ot hattonel dov?lpjit?i?nt. Wc do m?re traah that. We demand it alisp- for. others.'-- AVo do not confine ohr?:e*a"-'' thusiasm for individual liberty and ,.roo national d?velopmeht to the in cidents mul movemehta' of . .affairs whtth affect only ourselves. Wo feel lt wherever, there Is a . people" that tries;'* to,walk in these, dlflloult ?paths of .Iridepch'dbnce and right '. F'rom.'tho first we. have mado cominoh cause' wita all partisaris of'-liberty, on thia si4o th?? sea,- ?D^-:hav?.'deeme?'''.''lt': aa/ important tlint- otu* neighbors Should.* bo free from ali.ou.tsldo. domination as IHHHfS WTHI ?BcnaaamjnnBBaaBMnKBHMaNni that wc ourselves should be; have set America asido as a whole for-tho UK?'.? of Independent nations and poii tlcal freeman. Out of such thc tghts grow all our policies. Wo regard war merely as a means of asserting toe rights of a people against aggression. And we I arc us fiercely Jealous of coercive or dictatorial power within our own na tion as of, aggression from without. I We will not maintain a standing army except for asea which are as noces I sary in lim?s of neueo as In times of ' war; and wo shall always roe to it that our military peace establishment ls no larger than ls actually and con tinuously needed for t?o uses of dr.ys in which no enemies move against us. !iut wo d''. beHeye In a hody m tree [citizens ready and sufficient to tone euro of -theim-iel VPK nnd nf ?ho govern ments Which they have set up to servo thom. In our constitutions them selves we have commanded that "the right of the people to kcop and bear I ai ms snail not bo Infringed/' ?"d our ; coininencc has ?cen that our safely I In times of danger would?lie In the t?s? ? ing of tho nation to take care of itself, as tho farmers rose at Lexington. War a Disciplined .Might. But wnr has never been a mere , matter of men and guns. It is a thing ; of disciplined might. If our citizens ; aro ever to fight effectively upon a 1 sudden summons, they must know how modern fighting ls done, and what I to do when tho summons comes to ron ; der themselves Immediately avallablo and Immediately effective. And the government must be their servant In j UUs matter, must supply them with the training they need to take care of I themselves and of lt. The military '.arm of their government, which lucy j will not allow to direct thom, they may properly uso to serve them and . make their independence secure, ! nnd not their own Independence mere ly but the rig?ts also of those wf*b 1 whom tlioy have made conir-jon cause, ?should they also be put In jeopardy. ?They must bo fitted to play thc great j role In tho world, and particularly , in this hemisphere, for whlcV.i they arc I qualified by principle and by chasten ! ed ambition to play . It ls with these Ideals in mind that tho plans pf tho department of war I for moro .adequate national defense were conceived which will be laid be fore you, nnd whldii I urge you to sauc I tlou and put Into effect aa soon as they can be properly scrutinized and i discussed. Thev Boom to me the es sential-first steps, and tney soom to nie for tho present sufficient. Increase of Standing Army. They contemplate an Increase of tho standing force of the regular army from Us present strength of five thous and and twenty-three officers and ono hundred and two thousand nine hu dred and eighty-five enlisted men of all services to a strength of severn thousand one hundred und thirty-six 0 iii ec-ri; and one hundred and thirty j four thousand seven hundred. and ! sovoa - enlisted men, or 111,843,- all told, ul! services, rank and file, by the addition of fifty-two companies o? coast artillery, fifteen companies ol engineers, ten regiments of infantry, four regiments of field artillery, and four nero squadrons, besides seven "hundred and fifty officers required for a great variety of extra service, especially the all important duty'ol training u.ve i t.lzen force of which 1 shall presently speak, cjven hundred and ninety-two commissioned officers for service In drill, recruiting and thc Uko, and tho nocessary quota of en listed men for tho quarterniastoi corns,.'tho hospital, corps, the ordi uance department, and other slmilai auxiliary services. These are the ad dit'ens iicco-ocivry to render tho nrtnj atioquato lor ita present duties, duties whlda- lt has to perform not only up on our own continental coasts aiu borders aad at our-interior army posts but also in tho Philippines, in th? Hawaiian Islands, nt tin* Isthmus, am in Porto Rico. . 2?y way of making the country readj to ussert sumo part of its real powc; promptly and upoa a larger scale should occasion arlso, tho -pira ala< contemplates supplementing the arm; by a forco'of four hundred' thous?an< j dlsclpllr td citizens, raised in inc rc ' incuts o one hundred and tflrtrty-thret thousand a year throughout tv perio? of three years. TMs.it ls proposed'l< do b/va- process pf enlistment unde which tho sorvlcablo men of the conn try would bo asked to bind themselve to servo with tho colors for purpose of training for snort period through out threo years, and tb come to tin ?colors at call at any timo throughou ari additional "furlough" period. o j three years.. This force of four hun 1 dred- thousand mon would be prov l l i ed with norsonal accoutrements as fas fas enlisted arid their equipment ;fo ? the field made ready to bo supplie at any time, T?ey .would,bo assent ?bled for training at stated interval j at convonKint. places in ?ssociatio! j with, suitable units of tho l?gula: . army. Their period of. annual trHin . lng ' would not necessarily exceed tw months in tho year. It .woilld depend upon the patrlpti feeling of tho . younger ,raen of -,th ?country, whether thoy responded.' t erich a call' to service, vor riot. - '1 ifould deporid'upem the.patrk?tic spiv! ot ?ie-employers Of the country whola Crthcty made it possible fortho young er men'tn' their, employ f? respon Under .favorable conditions or not; : for.-ono, do not-'doubt the patritti devotion either of our-y?uns mon-? Of those who glve;thom empioymehi ..0(02?; for whoso, berief lt. arid prot?t Won "they would in fact"enlist, would .look1 ror<wafd"tp th'?' ??ccess. c auch-an experiment,with entire conf 'dence.} .. ? At - least sa : much by. way . of pr< parattah for def en BO . seer* ;, te mo t be absolutely 'imperaWvp; sj?w. \? W cannot do less. " -:.5Tae programme which will *Hi lal 7 WD ?pi beforo you by t lie Eoerctury of the nuvy Is . aimilariy conceived. It In volves only a shortening of the timo within Wf.vich plans long matured shall bo carried out; bul lt does make definite and explicit a. programme which has heretofore been only Im plicit, held in the minds of the com mittee on naval affairs and disclosed in the, debates or the two houses but nowhere formulated or formally udopt cd. It seems to nie very clear teat it will be to the advantage of thc- coun try rot" the congress te? adopt a com prehensivo plan for putting tho navy upon a final footing of strength and eiflcicney and,-lo press that ?"lan to completion within tile next five years. We havlo always l<;oke:l to. thc ne.vy of the country as our first and chief lino of defense; we ''.ave always seen it to be cur manifest course of pru dence to be strong on the seas. Year by year wo have boen creating a navy Which' now ranks very high indeed among tho ?Davies of the maritime na tions We sho lld now definitely de termine how. we sr,.all complete what wo have begun, and laow'aoon. The programme 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 gunboats, one hospital r.hip, two am munition ships, two fuel oil shins, and one repair ship.. It is proposed that cf this number wo shall tao first year provide for the construtcion v2 two battleships, two battle cruisers, threo scout cruisers, fifteen destroy ers, five fleet submarines, twenty-five const submarines, two gunboats, and ono hospital ship; tho second year, two battleships, one .';c.out cruiser, ten destroyer?, four floot submarines, fif teen coast submarines, ono gun heat, and'one fuel, oil ship; the third yoar, two battle ships, ono battlo cruiser, two scout cruisers, five destroyers, two fleet submarines, and fifteen coast submarines; thc four year, two battle ships, two battlo cruisers, two scout cruisers, ten destroyers, two fleet sub marines, 'fifteen'ebast submarines, one ammunition^ ship, and ono fuel oil ship; and thc fifth year, two battle ships, one; battle cruiser, two scout cruisers, ten destroyers, two iieet sub marines, fifteen coast submarines, one gunboat, one ammunition ship, and one repair ship^,,., i , Tho secretary of (he navy is askiiij also for the. Immediate r.dd'licn tc tho personnel of the navy of s~vea thousand ttvoO-'jiid1.-ed Bailors, twenty five hundred apprentice seamen, and fifteen hun"dred marines. This In crease would bc sufficient to caro for the ships 'which ure to bo complete-' within tho 'fiscal year 1917. und alec for the number of men which must bc put in traiuins to man tl ;tb< ships which will bo couaipicted early in 1918. Il is also necessary that tho number ol midshipmenyat tho naval 'academy al Annapolis abould./ba. increased by al least UtreaTnindrcd in order that tl?: forco of .officers should* be more rapid ly, added- to;, rani authority 13 askct to appoint, fpr .engineering duties on ly, approvedj. graduates, of engineer lng . collegea,,. and. for service In th? aviation corps a. certain number o: men taken from civil life. . If this full . .programme i'iould bi carried out wo should have built oi building in 1021, According to tbe es Uniates of,'??.rviynl.:and standards o classification, followed by the genera board of the, department, an cffectlv? navy consisting ot twenty-seven bat tlcshlps of tim*flret line, ai:: batth cruisers, twenly-ftiie battleships of tin second line,, toa armored cruisers thirteen scout crtltacrs, tlvo first das: cruisers, three second class cruiser? ton third ciuatj cruisers, ono i .usure; ami eight. destroyers, eightcon flee submarine's,, ono. hundred and fifty seven ccaat submarines, six monitors twenty gunboats, four supply ships, fif teen fuel ships, four" transports, titre tenders to. torpedo- vessels, eight vos eels bf special' tspes, and two "ammunl tion ships. TUls would'be a nav; fitted to our heeds und worthy' o our Intuitions.. ' Armies- (Intv a FVirt. But armies and instrument's of wa PAO only part ot "what has tb bo con sid?rea if we are to.'consider tf.io iu j1, cai o matter of national 'self-sulll doney and se??rity in all'Its,; aspects Thero aro other great mat??'ra whlc will be thrust s upon "onr - a tient io whether wo will1 dr hot. There is, fo .example, a very'pressing question ? trade and shipping involved in thi ?reat problem ot matlbnar adequacy it is necessary-"for many' weight; reasons of national efficiency and dc velopment that we should imvo a grea merchant. marine.. -. Tho great mei chant fleet wc once used to make u rich.'.that. gMt?jCy?wiiiiVi al'lrAy .?lloi who used to orrry our ;fiag into c^er Boa,. and who were tho pride and ol ton the bulwark-of. the nation, wo f-.av -almost driven :out-of existence by ic excusable neglect .and.? indifferent ?nd by a hopelessly hi md and prbvir etel policy of so-called. economic prc toctlon.': It is hlyh tMho wo. repaire our mistake and resumed o-iv commei v. lal Independence ? on , the'- sea*. For it ls a question nf tndopondenc If other nations- ?a-,to. war or sec to hamper each-other's, commerce, OJ 'merchants, lt. s???mv,ar? ,at their thai cy, to do with\?Br<?a0f-vslp'i^e;-'. ?vVV mu?t, uso thdr; ships, and', nee. thai as they ueteruj?hb1^, Wb hh^' hot'shti; ; enoush;of';.o'u^^^ 'cannot' hat die otar .bwn^.pbnim?rce, oakthe-!' seta Our lud?p?n.dencO"J?. provincial, \at ls only .on land bha^wlthlp, .bur ow borders. Wo^ar?.not likely tb he pc ml?tod to bao oyen' tho j?hl?^'.of;'?OA< nations in;'riyairy\:?r;.iheir...tbwn trad and oro'without moan's to "extchd ' ot commerce' even , whbr,e the doors oi iwide open ah<t our .goods desiree Such 'h situation -ts no^ to be endure* rt ls of .eapftai^tm^rtanbb net tm that tho United States should be i own carrier on the seas und enjoy tl ? S 'i'-.-'tk-' -Vi ? '? . "'i *?"Vt' Y ;<. ifl?S ?'*! economic independence whlcTi only on ad?quate merchant marine would give it, but also that the American hemis phere as a whole should enjoy a like Independence and self-sufficiency, if lt is not to bia drawn into the tangie of European affairs. Without such" independence thc whole question of our political afrulrs. Wltihout such j independence the whole question of our political unity and self-determina tion ls very seriously clouded and complicated Indeed. , Moreover, wo c^n develop no true or effective American policy without .ships of our own-not ships ol' war, but ships of peace, carrying good-? and carrying much more; creating friendships and rendering Indispen sable services to all interests on this side the water.. They must move con stantly, back and forth between .ne Americas. They are the only shuttles that can weave the delicate fabric of sympathy, comprehension, confi dence, and mutual dependence In which wo wish to clothe our policy or America for Americans. . Adequate Merchant Marine. Tie task of buildin;; up nn adequate merchant marine, for America p-ivate capital must ultimately undertake and achieve, as it has undertaken and achieved every other like task amongst us In-the past, with admirable enter prise, intelligence, and vigor; and lt seems to me a manifest dictate of wisdom that' wo should promptly re* move every legal obstacle that may stand In the wey of this much to be desired revival of our old independence and should facilitate in every possible way the building, purchase, end American registration of ships. Hut capital cannot accomplish this great task of a sudden. It must embark upon ii by degrees, as tho opportuni ties o? trade develop. Something must bo done at once; done to open routes and develop opportunities where they are as yet undeveloped; done to open thc i'.rterles of trado where thc currents have not yet learn ed to run,-especially between tno two American continents, where they arc, singularly enough, yet-to be creat ed and quickened;, and it is evident -that only tho government can under take such beginnings and assume the Initial financial risks. V?hcn the risk has passed and private capital begins to find Ita way In sufficient abundance into these new. channels, the govern ment m3y withdraw. But lt cannot omit to begin. It, should take thc first steps, and should take them at once.. Our good?. must, not Ho plied up at our porta and stored upon olde tracks In frelght;cars which aro dally needed on the roads;, must not be left without means of transport to any foreign quarter. We must not await the permission of foreign ship owners and foreign governments lo send them where wo-will. ' Wibi a ylow to meeting these pr'oss ing necessities of our commerce and availing obrselveB at, tho earliest pos Blblo. moment of .the, present, unparnil tIed. opportunity, <>f .'Imklhg. lh'u two IAme-icas together In bonds.of mutual interc3t''?nd service, an opportunity whlc]ti mx?t never return again.if we miss lt now, proposals v ill' be made 40 tho prescht congress ?or the-pur chase or construction of ships to be owned and ' directed by the govern ment similar to those made to the lasl congress, but modified in some essen tial particulars'. i.I. recommend ttiese proposals to you for your, prompt ac ceptance with the moro confidence be causo ovory month* that-has. elapsoc since the former proposals were made has on ado the necessity tor sqph action more and more manlfestJy Imperative That need waa then foreseen; it IE now acutoly felt and overywhf r-a rea lized by those for .wuom trade ls wait ing but who can find ho conveyance for their goods. . I j am not. co mud; interested id the particulars of thc programme a? I am In taking, lin me diate advantage of,, the great oppor tunlty. whlqh awaits ?us If wo will- bu! act In this emergency. In this mat ter, as. in all.others', a spirit of com mon coups'"} should prevail,- and ou .of. lt il'1 ou?e- come un early/solutioi of; this- .pressing problem. ; * Policy Towariia* Colonial B. There is anothermatter which-sce?i! to mo to be very intimately associ?t od with the? question of national safe ty. and preparation-for defense. .Thia is our. poftcy towards the Philippine! apa tho people of Porto- pico. Ou treatment of- them.-, and-their attlt?di towards .us ar,*? manifestly, of ...bio firs consequence in tho d?volopment *o our dutlos in the world and in gottini a; free h_nd to perform thosO duties We must bo free fropn overy urincc casa ry burden or 'embarrassment and there js no better way to bo clea of. embarrar-sinont than to .fulfill en liri .In lam' ami rm*-..t\._- ?Wi-jT--^ of those dependent, oh us -to tho-ut most. Bills for the alt?ration and ro form of tho government o? tho Phillp pines and for. rendering fuller pollti col; Justed to die people of Porb Pico-were 'submitted to the stxty-thlfl congress". They will fee submited al eb 'to, youI ', need : not?: particularly their details. . You arc-moat of yoi already famille* with .them. But I d recommend them to your eatly adop tlon with' the' sincero conviction tba tlioto .arc . fow measatros you cont adopt; which - .would more : eervicabl; clear tfie way for ??ie great -polleiert b which we -wish, to'*make .good, noi and aJways.-ojir^Tlght to lead' in enter prises - of : peace arid good witt an economic and political irc-cdo^&g?? . th?:plans for the' armed forces c ^.nation w??tch iifcave outlined, an ??gihe got?eral policy ot s4^o.??t preparation . for mobilizationjaml ; st? feriae, involve of cnnr?e very larg nodltioholexpenditures ,-of - noa% cxpeualtrires which ,wil?.;icoris??erabi .eraj^tthc estimated revenues, of th government' It ia mado by duty b law,'; whenever tho estimates o? 03 penditut? exceed the , estimate* < revenue, to call the ?tien??oh^g^l congress to the fact and stiegest any I moan? of meeting thc deficiency that I !t may be wise or possible for mo to j suggest. I am ready to believe that : it would bo my duty to do so in any casej_and I feel particularly bound W'?p?ak of the-matter when it ap pears that tho deficiency will arise directly out of the adoption by tho congi ess of measures which I myself ur?o it to adopt. Allow me, there fore, to speck briefly of the pr?v?nt slate of the treasury and of the fiscal problems which the next year will probably fib-close. Balance in Treasury, On the thirtieth of June last "there was on available balance in-the gen eral fund of the treasury of $104,170, 105.78. The total estimated receipts for tho year l?ltj, on the assumption that the emergency revenu? measure passed by the lasfcong.ebs will not be extended beyond Its present limit, the thirty-first of December, 1915.. and that tho present duty of ono rent per pound ou sugr>r Will bc discon tinued after tho first of May, 1916, will ba $G70,3G5,GOO. The balance of Juno last and these estimated reve nues come, therefore, to a grand *btal of $774,535.005.78. The total estimat ed disbursement for the present fiscal year, Including twenty-five millions for the Panama Canal, twelve millious for probable deficiency appropria tions, and fifty thousand dollars for miscellaneous debt redemptions, will be $753,891,000; and the balanc? in tho general fund of the treasury will be reduced to $20,(344,605.78. The emergency revenue act, if continued beyond its present time limitation, would produce, during the half year then remaining, about forty-one mil lions. Tho duty of one.cent per pound on sugar, if continued, would produce during the two months of tho fiscal yep.r remaining after Uro first of May, about fifteen millions. These two sums, amounting together to fifty-six millions, if aded to the. revenues of the second half of the fiscal year, would yield the treasury at the cud of tho year an available balance of $7G, G-}-i,G0n.78. j The additional revenues required to carry out the programm? of military and naval preparaUon of which I have spoken, would, a3' at figures taken with tho figures for the present fiscal year~ which I have already given, disclose our financial problem for tho year 1917. Assuming that tho taxes imposed by( the emergency rcvonuo act and the present duty on sugar are to be" discontinued, and that the balanco at thc close of the present fiscal year will be only $20.644,605.78, that the disbursements for the Pana ma Canal will again bo'about, twenty five million.'-,, and that the additional expenditures for the army and navy are authorized by the congress,, tho deficit in the general fund of tho treafcurj on the'thirtieth bf .June, 11*17, will ba nearly two hundred,, and ;tu!rty-llv?.. millions. ' To tbls;,'sum at least filty^ .added to 'represent' a safe' work|fig balance for ''.no treasury, and twoKc millions to include the usual deficiency esti mates, in 1917;; and these . additions would moke . a. total deficit , of soma two hundred and ninety-seven mil lions. If tho present taxes Should be continued throughout this year and tho noxt, however, there would be. a balance in tho treasury of some seventy-si-c and i "half millions at thc end of the present ' fiscal year, -and a deficit at tho end of the noxt year ol only some fifty millions,, or, reckon ing in sixty-two millions for deficiency appropriations r. u d a safo, treasury balance at tho end of tho.year, a total deficit of come ono hundred and iweivo minions. The' obvious morai or til.i figures is :tlmt it ls a plain counsel of prudence to continue eil of the rrospnt taxes or their eouiva lonts. and confine ourselves : to thc problem of, providing Borne hundred and twelve'millions- of now revenue rather their two hundred and'ninety teven millions. '. Itaising Kew Bovenue. How sha!1, we obtain the new reve nue? We ore frequently rem laded that there ar? many millions,of b?ndt which the treasury ls authorized un der existing law to sell to reimburse tho sums paid out of current fove?u?? for . thc ' construction'' of tho Pnnamc Canal; and lt is true that bonds to t?.? amount of approximately $222,000; 000 aro now availablo ' for .thai purpose. Prior to 1913 .. $184, 631,980 of these bonds? had ac tmu'.y been nolqMo recoup tho expen ditures at tho isthmus; and now coi; sUtuPva ^msiderabie i ,?m.of tho p?b: He debt: Put 1. for one, do not'be Hove. Umt the . people of Uris country approve ' of poslportlr-g^ the .-.* paynton e? their t-iUr.. ; mousy i; short-sighted f^v?^k,V:3f^^gi:?l^ Juett ?ed only when periuauebt, things ~?rt to bp, ncco'mplls]?ed . which many gen eratlons ylll .certainly b?b?fii, of- ant which lt .seems barely fair that a" Bin} ??ie. generation chonld, pay'/jfOr; Th'< objects wv -' -?re' ' "hqw; ' ; proposing ' tc spend'money-'for cannot ..ba r,o cl ans i flod,. except iii tho VV?nW.t^at every tiling "wisely done ? mtfy; b?; said i td1 'bi done in tie interest" ot posterity ai well os in our own.. It'see^a to rm ? clehr dictate; of prudent/Jtateshmn ship and frank finance Umt'in wha vi*e.aro nbw, I. kopo,.'about: to under tako we ccitould'. pay aa wo go. Th? peoplo of tho. country turo ofitlllcd U know.Just what burdens A'u" taiatloi thor." ate, tot: ckriy, and, to know fron the outset, now. The-BAW hills shc-uh b'?^a\'d bi' infcriial taxation. . To what source?,;.then/.:shall .'w< hi rn'J ThiB ia s?. pe?u?l?irly ix qtieb tfoiii whlc> the gecitonm&of tho horas] of.'r?pr?nbn??t?v?s: ?He eirp?ct?d unrde? tile :cbu?(i|nt?oa;i? prbpb*ei nh t?hsw?! to- thD.V.yot^;Will, h?l?lly .?xpecS*< dei' mor? tmyn'i?we??s';'it;la'vver?:.??n eral torres. ?.\Wo-,8n;ouiav?a-''foMwln"? no. almost' universal .es?tnple of mod ern" ' governments-.if We" wore to dray .r~-:-~ . ' ? .-? ?'. ^ ' ?.'.?*."..'>.??' -'.'. - . ...^vr;, - . ~S3T?~--' ~* . thc greater part or even the whole of tho revenues we need fropi the in come taxes. By somewhat lowering the present limits of exemption and tIii; figure at which tho surtax shall begin'to be imposed, and by increas ing,1 stun- by step throughout the pres ent graduation, the surtax itself, tho income taxes us at present apportion ed would yield sunn* sufficient to bal ance the books of the treasury at tho end of the fiscal year 1917 without anywhere making the burden unrea sonably or oppressively heavy. Tho precise reckonings are fully and ac curately set out in the report of tho secretary of the treasury which will ^ bc immediately laid before you. . And there are many additional sources of revenue which can justly, be resorted to without hampering the industries cf tire country or putting any to?'-great charge upon individual expenditure. A tnx of one cent per grillon on gasoline and naptha.would yield, at the present estimated pro duction, $10,000,000; a tlx of 25 cenTs" per horse power on automobiles aud internal explosion engines, $15, 000,000; a stamp tax on bank cheques, probably $18,000,000; a tax of twenty five cents per ton on pig Iron, $10, 000,000 f a tux of fifty cents per tem or? fabricated' 'iron and steel, prob ably $10,000,000. In a country bf groat Industries like this it ought to be easy to distribute the burdens of taxation without, making them anywhere bear too heavily or too exclusively upon any one set of parsons or uudertph.-. Ings. What ls clear ls, that the in dustry/ of .this' generation should pay the bllls'bf tills generation. Thorough Preparation. I have spok'?n'.to you today, gentle men, upon a single thqmc, tho 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 ; whifch''wo all believe to have been providentially /assigned to it. I havo had in my mind no thought cf any Immediato or particular dan ger arising out of our relations with other''nations. We aro'at peace with . altjlhc nations of tho world, and there T 5s rcanon io hope that no question In controversy botween this and other governments will lead to any serious breach of amicable relut ion:;, grave as som-.' differences of. attitude and policy have'been and may. yet tura out to b?.' "i'"am1 sorry to say that tho gravest threats against our'national pence audrs"afcty hove' been uttered within our own borders. There aro citidens of'tho United Stites, I blush , to ?dmtt; bo'r^?. under other flags but welcot?0d'?\ina?r Our generous nat uralization laws to the full freedom 1 and opportunity of Amarlca, who have poured tlie,'poison of disloyalty into the very.arteries of our national life; who havq fought, to bring, the author- f f ty $$$$$$ 'naij$ p^yur; ?py?rnment into.' c?hteblpt, "to'destroy httfc indu3 . tiles' ,\v1ieVc'v^r.'they ''thpucht lt effec tive'f?r^th'e^^^ purposes to 's/rl-R'?'.'bt''theni',J. a^d'toVdeb^? our pplltlOs] to tho iises. Of fojrejgn intri gu?.^ Their number is not great as . cnn^p?r.?d"with tho..whole number of (hpso^stuwiy' {tpa^s jjy , which our na tion hiaB^bccn er riehqL.ui.recent gen erations out, of yftlle .foreign stocks; but [it is'tgr^nt ?p?ugh to have brought de?p disgrace. i<pon ?s and haye made it necessary^ tua? we should, promptly make, use cf. processes of jaw by wjjl?h. }v?-?nay bo purged ofthelr cor r^'f-^p. tempe re,y i, America novor wlt ijcsfsjeil (n^tWng like this before. It ?qyorj-dreamed it' possible-that men sworn .into its own citizenship, mon . drawn out of great freo stocks such 3 . as supplied T.omo of the best and jstroiiycsc elements or that little, but lio^tferolcj. .nation that in a high / day^v^f. Qld; staked Ita very life to free itS^sh^ ffe?n '.every 'entanglement that .had darkened , the fortunes of the old? . er, payons and set up a, new stand ar^ lt?fp.--lhat men of Such . origins apdAsuch' free' choices of allegiance ? w??lft'^V?V^turn ;ln malign r?action csalnsti. tho government and ;' people who' had welcomed and nurtured fjhc-in omi set-It to make this;proud cobiitsir once moro a hotbed of Euro peim passion. A little'whlla ago stich a^tk??g would have.B??m?d incredible. ?Because lt was '.incredible'-we . mada , po preparation for'lt ' We would havo beep, ashamed tb^ prepare-for it, as if we, wore suspicious of ourselves. - our ' . own comrades and h?lghbbrsl' But ? tho ugly and incredible thing haB ac tually come about and we1 aro without adequate federal laws: to 'deal-with it. I urge you to enact' auclv lawa at tho carib-* / possible moment' and f?ol that ; in tiping 'an'-; t jam* urglhg . fcoup-'t? do nothing le^ th^'savo tho honor and . 'sc?f-rt't iiect ot'tho gatton:' Such crea tures- of passion, dit??oyalty, a?d'. an archy ?rust'bo They - aro no?imany;' out 't4i?^-vn.'r? ;mnniteiy" ' . '.' ?.irJignout, and tho hatid''of..?ur; pow er fhonldi vcibse -. bvor ih?nFat once. Th?:y ' nav?', fbmed-''jp???^<6'\ destroy " liiope'rty, . thoy have '?nteW'd Into con- . spiracle*, against, the neutrality of tho govt>riitt?eW'th^^1i?trb?'?ptiglit '.tc- pry Into every: confidential transaction of tne'gaycrrimen^^ servo in- '' , toreB?: -siten to/our :?wn.' ; If is pps albie jo deal wifii; th?se1' things very . effectively. -V-?'nc^.nuVfsvggest the .s terms in ' which;' they -nrny bb' dealt : with. ; % . u -, -, ;^s|r^.'.^raBs'e)i!s.' 1:;:'^ls?v that;it''c?}jt?:4?e said that, ?fftifc;? few; mpn;\ misled by mistaken i ??hum?n.ts or .rtllegiancoi tb ; the gov i^^eni*'. ? u?fttor" whicn^'-.th?y ' 'va&Wf? .jpre^t??" fcee?-.-guWI'-'or'aui'turnlttg $8?^lf>P%seW fng. the teinpe^a??^ ' .'< 'ftt^OT ,^riri^ wir; ^vhcnltr >vp?id^^^^ mah: who ya* :TtMy ^^.C?mer'^an would inbtlrictl^e?y niake-'It' his' disty' pnd" p?-:M?M\?b' k??pTtho :'ac???S';?ft?,-:.--'>:. |*P^pM>^?'. hnd prbVo himself ? . ^.'.^^..,, ^ - ^_