PAGE 19M

THE MICHIGAN DAILY

FRIDAY, JANUARY 8, 1954



President

Eisenhower's

State-of-t e-Union

peec


WASHINGTON-(AP)-Following is
the partial text of President Eisen- Union. Indeed we shall be glad to'
hower's State-of-thp-Union message do so whenever there is a reason-
to Congress yesterday: able prospect of constructive re-
Toward the objective of building suits. In this spirit the atomic
a strong America a real momen- energy proposals of the United
tum has been developed during States were recently presented to
this Administration's first year in the United Nations General As-
office. We mean to continue that sembly. A truly constructive So-
momentum and to increase it. We viet reaction will make possible a
mean to build a better future for new start toward an era of peace,
this nation. and away from the fatal road to-
There has been in fact a great ward atomic war.
strategic change in the world dur- Since our hope is peace, we owe
ing the past year. That precious ourselves and the world a candid
intangible, the initiative, is be- explanation of the military meas-
coming ours. Our policy, not lim- ures we are taking to make that
ited to mere reaction against crises peace secure.
provoked by others, is free to de- As we enter this new year, our
velop along lines of our choice not military power continues to grow.
only abroad, but also at home. As This power is for our defense and
a major theme for Americanpolicy to deter aggression. We shall not
during the coming year, let our be aggressors, but we and our
joint determination be to hold allies have and will maintain a
this new initiative and to use it. massive capability to strike back.
We shall use this initiative to Here are some of the considera-
promote three broad purposes: tions in our defense planning:
First, to protect the freedom of First, while determined to use
our people; second, to maintain a atomic power to serve the usages
strong, growing economy; third, of peace, we take into full account
to concern ourselves with the hu- our great and growing number of
man problems of the individual nuclear weapons and the most ef-
citizen. fective means of using them
All my recommendations today against an aggressor if they are
are in furtherance of these three needed to preserve our freedom.
purposes. Our' defense will be stronger if,
FOREIGN AFFAIRS under appropriate security safe-
AmrcfreGNomFistrSaee guards, weae share with our allies
American freedom is threatened certain knowledge of the tactical
so long as the world Communist use of our nuclear weapons. I
conspiracy exists in its present urge the Congress to provide the
scope, power and hostility. More needed authority.
closely than ever before, Ameri-. ecy s
can freedom is interlocked with Second, the usefulness of these
the freedom of other people. In new weapons creates new rela-
the nreydo the reeorlien tionships between men and ma-
ohe unity of the free world lies terials. These new relationships
our 'best chance to reduce the pri cnme nteueo
Communist threat without war, permit economies in the use of
In the task of maintaining this men as we build forces suited to
In tye a s or ain t iningall its our situation in the world today.
unity and strengtheningalit As will be seen from the budget
parts, the greatest responsibility ms s o nfrom
falls naturally on those who, like message on Jan. 21, the air pow-
fall nauraly o thse wo, ike er of our Navy and Air Force is
ourselves, retain the most freedom evin heavy empais.
and strength. receiving heavy emphasis.
We shall, therefore, continue to Third, our armed forces must
advance the cause of freedom on regain maximum mobility of ac-
foreign fronts. tion. Our strategic reserves must
In the Far East, we retain our be centrally placed and readily de-
vital interest in Korea. We have ployable to meet sudden aggression
negotiated with the Republic of against ourselves and our allies.
Korea a mutual security pact Fourth, our defense must rest on
which develops our security sys- trained manpower and its most
tem for the Pacific and which I pconomical and mobile use. A pro-
shall promptly submit to the Sen- fessional corps is the heart of any
ate for its consent to ratification. security organization. It is neces
We are prepared to meet any re- sarily the teacher and leader of
newal of armed aggression in Ko- those who serve temporarily in the
rea. We shall maintain indefinitely discharge of the obligation to help
our bases in Okinawa. I shall ask defend the republic.
the Congress to authorize contin. Fifth, the ability to convert
ued material assistance to hasten swiftly from partial to all-out mo-
the successful conclusion of the bilization is imperative to our se-
struggle in Indochina. This assist- curity. For the first time, mobili-
ance will also bring closer the day zation officials know what the re-
when the associated states may en- quirements are for 1,000 major
joy the independence already as- items needed.for military uses. We
sured by France. We shall also shall speed their attainment. This
continue military and economic aid nation is at last to have an up-
to the Nationalist government of to-date mobilization base - the
China . foundation of a sound defense
In South Asia, profound changes program.
are taking place in free nations Another part of this founda-
which* are demonstrating their tion is, of course; our continen-
ability to progress through demo- tal transport system. Some of
cratic methods. They provide an our vital heavy materials come
inspiring contrast to the dictator- increasingly from Canada. In-
ial methods and backward course deed our relations with Canada,
of events in Communist China. In happily always close, involve
these continuing efforts, the free more and more the unbreakable
peoples of South Asia can be as- ties of strategic inter-depen-
sured of the support of the United dence. Both nations now need
States. the St. Lawrence Seaway for se-
In the Middle East, where ten- curity as well as for economic
sions and serious problems exist, reasons. I urge the Congress
we will show sympathetic and im- promptly to approve our parti-
partial friendship. cipation in its construction.
In Western Europe our policy Sixth, military and non-mili-
rests firmly on the North Atlantic tary measures for continental de-
Treaty. It will remain so based as fense must be and are .being
far ahead as we can see. Within strengthened. In the current fiscal
its organization, the building of a year we are allocating to these
United European community, in- purposes an increasing portion of
cluding France and Germany, is our effort, and in the next fiscal
vital to a free and self-reliant year, we shall spend nearly a bil-
Europe. This will be promoted by lion dollars more for them than in
the European Defense Community 1953.
which offers assurance of Europe- The defense program recom-
an security. With the coming of mended in the 1955 budget is con-
unity to Western Europe, the as- sistent with all of the considera-

sistance this nation can render for tions which I have just discussed.
the security of Europe and the free It is based on a new military pro-
world will be multiplied in effec- gram unanimously recommended
tiveness. by the joint chiefs of staff and ap-
In the world as a whole, the proved by me following considera-
United Nations, admittedly still in tion by the National Security
a state of evolution, means much Council. This new program will
to the United States. The United make and keep America strong
Nations deserve our continued firm in an age of peril. Nothing should
support. bar its attainment.
FOREIGN ASSISTANCE The international and defense
In the practical application of policies which I have outlined will
our foreign policy, we enter the enable us to negotiate from a po-
field of foreign assistance and sition of strength as we hold our
trade. resolute course toward a peaceful
Military assistance must be con- world.
tinued. Technical assistance must
be maintained. Economic assist- INTERNAL SECURITY
ance can be reduced. However, our From the special employment
economic programs in Korea and standards of the federal govern-
in a few other critical places of ment I turn now to a matter re-
the world are especially import- lating to American citizenship. The
ant, and I shall ask Congress to subversive character of the Coin-
continue them in the next fiscal munist Party in the United States
year. has been clearly demonstrated in
An essential step is the creation many ways, including court pro-
of a healthier and freer system of ceedings. We should recognize by
trade and payments within the law a fact that is plain to all
free world-a system in which our thoughtful citizens-that we are
allies can earn their own way and dealing here with actions akin to
our own economy can continue to treason - that when a citizen
flourish. The free world can no knowingly participates in the
tnnaff+rdthe knd of nr hi Communist conspiracy he no long-


committees to present his recom-
mendations for needed additional
legal weapons with which to com-
bat subversion in our country and
to deal with the question of claim-
ed immunity.
STRONG ECONOMY
I turn now to the second great
purpose of our government: along
with the protection of freedom, the
maintenance of a strong and
growing economy.
At this moment, we are in tran-
sition from a wartime to a peace-
time economy. I am confident that
we can complete this transition
without serious interruption in
our economic growth. But we shall
not leave this vital matter to
chance. Economic preparedness is
fully as important to the nation as
military preparedness.
Subsequent special messages
and the economic report on Jan.
28 will set forth plans of the Ad-
ministration and its recommenda-
tions for congressional action.
These will include: flexible credit
and debt management policies; tax
measures to stimulate consumer
and business spending; suitable
lending, guaranteeing, insuring
and grant-in-aid activities;
strengthened old age and unem-
ployment insurance measures; im-
proved agricultural programs;
public works plans laid well in
advance; enlarged opportunities
for international trade and in-
vestment. This mere enumeration
of these subjects implies the vast
amount of study, co-ordination
and planning, to say nothing of
authoriting legislation, that alto-
gether make our economic pre-
paredness complete.
THE BUDGET
I[ shall submit to the Congress
on Jan. 21 the first budget pre-
pared by this Administration, for
the period July 1, 194, through
June, 1955.
This budget is adequate to the
current needs of the government.
It recognizes thats a federal budget
should be a stabilizing factor in
the economy.
Pending the transmittal of my
budget message, I shall mention
here only a few points about our
budgetary situation.
In the next fiscal year we esti-
mate a further reduction in ex-
penditures of more than $5,000,-
000,000. This will reduce t h e
spending level over the two fiscal
years by more than $12,000,000,-
000. We are also reducing further
our requests for new appropria-
tions.
Second, despite the substan-
tial loss of revenue in the com-
ing fiscal year, resulting from
tax reductions now in effect
and tax adjustments which I
shall propose, our reduced
spending will move the new
budget closer to a balance.
Third, by keeping newappropri-
ation requests below estimated rev-
enues, we continue to reduce the
tremendous accumulation of un-
financed obligations incurred by
the government under past appro-
priations.
Fourth, until those claims on
our government's revenues are
further reduced, the growth in the
public debt cannot be entirely
stopped. Because of this-because
the government'shbills have to be
paid every month, while the tax
money to pay them comes in with'
great unevenness within the fis-
cal year-and because of the need
for flexibility to manage this enor-
mous debt, I find it necessary to
renew my request for an increase
in the statutory debt limit.
TAXES
The new budget provides for a
lower level of taxation than has
;revailed in preceding years. Six
days ago individual income taxes
were reduced and the excess pro-

fits tax expired. These tax reduc-
tions are justified only because of
the substantial reductions we al-
ready have made and are making
in governmental expenditures. As
additional reductions in expendi-
tures are brought gradually but
surely into sight,' further reduc-
tions in taxes can and will be
made.
While we are moving toward
lower levels of taxation we must
thoroughly revise our whole tax
system. We should now remove
the more glaring tax inequities,
particularly on small. taxpayers;
reduce restraints on the growth
of small business; and make other
changes that will encourage ini-
tiative, enterprise and production.
Twenty-five recommendations to-
ward these ends will be contain-
ed in my budget-message.
Without attempting to sum-
marize these manifold reforms,
I can here illustrate their ten-
dency. For example, we pro-
pose more liberal tax treatment
for dependent children who
work, for widows or widowers
with dependent children, and
for medical expenses. For the
business that wants to expand
or modernize its plant, we pro-

jieeded to eliminate excessive
profits and to prevent waste of;
public funds in the purchase of
defense materials.
AGRICULTURE
The well being of our 160 mil-
lion people demands a stable and
prosperous agriculture. Converse-
ly, every farmer knows he can not
prosper unless all America pros-
pers.
Agricultural laws now in effect
successfully accomplished their
wartime purpose of encouraging
maximum production of many
crops. Today, production of these
crops at such levels far exceeds
demand. Yet the laws encouraging
such production are still in effect.
The storage facilities of the Com-
modity Credit Corp. bulge with
surplus stocks of dairy products,
wheat, cotton, corn and certain
vegetable oils; and the corpora-
tion's presently authorized bor-
rowing authority-$6,750,000,000-
is nearly exhausted. Some pro-
ducts, priced out of domestic mar-
kets, and others, priced out of
world markets, have piled up in
government hands. In a world in
which millions of people are hun-
gry, destruction of food would, of
course, be unconscionable. Y e t
surplus stocks continue to threat-
en the market, and in spite of the
acreage controls authorized by
present law, surpluses will con-
tinue to accumulate.
We confront two alternatives.
The first is to impose still greater
acreage reductions for some crops
and apply rigid federal controls
over the use of the diverted acres.
This v-ill regiment the production
of every basic agricultural crop.
It will place every producer of
those crops under the domination
and control of the federal govern-
ment in Washington. This alter-
native is contrary to the funda-
mental interests, not only of the
farmer, but of the nation as a
whole. Nor is it a real solution to
the problem facing us.
The second alternative is to
permit the market price for
these agricultural products gra-
dually to have a greater influ-
ence on the planning of produc-
tion by farmers, while continu-
ing the assistance of the gov-
ernment. This is the sound ap-
proach. To make it effective,
surpluses existing when the new
program begins must be insulat-
ed from the normal channel of
trade for special uses. These
uses would include school lunch
programs, disaster relief, emer-
gency assistance to foreign
friends, and of particular im-
portance the stockpiling of re-
serves for a national emergency.
Building on the agricultural
laws of 1948 and 1949, we should
establish a price support program
with enough flexibility to attract
the production of needed supplies
of essential commodities and to
stimulate the consumption of
those commodities that are flood-
ing American markets. Transition
to modernized parity must be ac-
complished gradually. In no case
should there be an abrupt down-
ward change in the dollar level or
in the percentage level of price
supports.
Next Monday, I shall transmit
to the Congress my detailed re-
commendations emboding this ap-
proach. -
CONSERVATION
All federal conservation and re-
source development projects are
being reappraised. Sound projects
now under way will be continued.
New projects in which the federal
government has a part must be
economically sound, with' local
sharing of cost wherever appro-
priate and feasible. In the next
fiscal year work will be started on
23 projects that meet these stan-
dards. The federal government
will continue to construct and op-
erate economically sound flood

control, power, irrigation and wa-
ter supply projects wherever these
projects are beyond the capacity
of local initiative, public or priv-
ate, and consistent with the needs
of the whole nation.

Our conservation program will
also take into account the im-
portant role played by farmers
in protecting our soil resources,
I recommend enactment of leg-
islation to strengthen agricul-
tural conservation and up-
stream flood prevention work,
and to achieve a better balance
with major flood control struc-
tures in the downstream areas.
Recommendations will be made
from time to time for the adoption
of:
A uniform and consistent wa-
ter resources policy;
A revised public lands policy;
and
A sound program for safeguard-
ing the domestic production of
critical and strategic metals and
minerals.
NATIONAL HIGHWAYS
So that maximum progress can
be made to overcome present in-
adequacies in the interstate high-
way system, we must continue the
federal gasoline tax at two cents
per gallon. This will require can-
cellation of the 2 cent decrease
which otherwise will become ef-
fective April 1, and will maintain,
revenues so that an expanded
highway program can be under-
taken.
POST OFFICE
It is apparent that the substan-
tial savings already made, and to
be made, by the Post Office De-
partment can not eliminate the
postal deficit. I recommend,
therefore, that the Congress ap-
prove the bill now pending in the
House of Representatives provid-
ing for the adjustment of certain
postal rates. To handle the long-
term aspects of this, I also recom-
mend that the Congress create a
permanent, commission, to estab-
lish fair and reasonable postal
rates from time to time in the fu-
ture.
LABOR AND WELFARE
Of the many problems in this
area, those I shall first discuss are
of particular concern to the mem-
bers of our great labor force, who
with their heads, hearts and
hands produce so much of the
wealth of our country..
Protection against the haz-
ards of temporary unemploy-
ment should be extended to
some 6V millions of workers,
including civilian federal work-
ers, who now lack this safeguard.
Moreover, the Secretary of La-
bor is making available to the
states studies and recommenda-
tions in the fields of weekly
benefits, periods of protection
and extension of coverage. The
economic report will consider
the related matter of minimum
wages and their coverage.
The labor management rela-
tions act of 1947 is basically a
sound law. However, six years of
experience have revealed that in
some respects it can be improved.
On Jan. 11, I shall forward to the
Congress suggestions for changes
designed to reinforce the basic ob-
jectives of the act.
Our basic social security pro-
gram, the old-age and survivors
insurance system, to which indi-
viduals contribute during their
productive years and receive bene-
fits based on previous earnings, is
designed to shield them for desti-
tution. Last year I recommended
extension of the social insurance
I system to include more than 10,-
000,000 additional persons. I ask
that this extension soon be accom-
plished. This and other major im-
provements in the insurance sys-
tem will bring substantial benefit
increases and broaden the mem-
bership of the insurance system,
thus diminishing the need for fed-
eral grant-in-aid for such pur-
poses. A new formula will there-
fore be proposed, permitting pro-
;ressive reduction in such grants
as the need for them declines.
The program for rehabilitation

of the disabled especially needs
strengthening. Through special
vocational training, this program
presently returns each year sgne
60,000 handicapped individuals to
productive work. Far more disab-

led people can be saved each year
from idleness and dependence if
this program is gradually increas-
ed. My more detailed recommen-
dations on this and the other so-
cial insurance problems I have
mentioned will be sent to the Con-
gress on Jan. 14.
HEALTH
I am flatly opposed to the so-
ialization of medicine. The great
need for hospital and medical
services can best be met by the
initiative of private plans. But it is.
unfortunately a fact that medical
costs are rising and already im-
pose severe hardships on many
families. The federal government
can do many helpful things and
still carefully avoid the socializa-
tion of medicine.
The federal government should
encourage medical research in its
battle with such mortal diseases
as cancer and heart ailments, and
should continue to help the states
in their health and rehabilitation
programs. The present hospital
survey and construction act should
be broadened in order to assist in
the development of adequate fa-
cilities for the chronically ill, and
to encourage the construction of
diagnostic centers, rehabilitation.
facilities, and nursing homes.
The war on disease also needs
a better working relationship be-
tween government and private
initiative. Private and non-profit
hospital and medical insurance
plans are already in the field,
soundly based on the experience
and initiative of the people in
their various communities.
A limitied government rein-
surance service would permit the
private and non-profit insur-
ance companies to offer broad-
er protection to more of the
many families which want and
should have it. On Jan. 18, I
shall forward to the Congress a
special mesage presenting this
Administration's health pro-
gram in its detail.
EDUCATION
Youth-our greatest resource-
is being seriously neglected in a
vital respect. The nation as a
whole is not preparing teachers or
building schools fast enough to
keep up with the increase in our
population.
The preparation of teachers as,
indeed, the control and direction
of public education policy, is a
state and local responsibility.
However, the federal government
should stand ready to assist states
which demonstrably cannot pro-
vide sufficient school buildings.
HOUSING
The details of a program to en-
large and improve the opportuni-
ties for our people to acquire good
homes will be presented to the,
Congress by special message on
Jan. 25.

This program will include: '
Modernization of the home
mortgage insurance program of
the federal government;
Redirection of the present sys-
tem of loans and grants-in-aid
to cities for slum clearance and
redevelopment;
Extension of the advantages of
insured lending to private credit
engaged in this task of rehabili-
tating obsolete neighborhoods;
Insurance of long-term, mort-
gage loans, with small down pay-
ments for low-income families;
And, until alternative programs
prove more effective, continuation
of the public housing program
adopted in the housing act of
1949.
The internal reorganization of
the Veterans Administration is
proceeding with my full approval.
When completed, it will afford a
single agency whose services, in-
cluding medical facilities, will be
better adapted to the needs of
those 20,000,000 veterans to whom
this nation owes so much.
SUFFRAGE
My few remaining recommenda-
tions all relate to a basic right of
our citizens-that of being rep-
resented in the decisions of the
government.
I hope that the states will co-
operate with the Congress in
adopting uniform standards in
their voting laws that will make
it possible for our citizens in the
armed forces overseas to vote.
In the District of Columbia, the
time is long overdue for granting
national suffrage to its citizens
and also applying the principle of
local self-government to the na-
tion's capital. I urge the Congress
to move promptly in this direction
and also to revise district revenue
measures to provide needed pub-
lic works improvements.
The people of Hawaii are ready
for statehood. I renew my request
for this legislation in order that
Hawaii may elect its state officials
and its representatives in Wash-
ington along with the rest of the
country this fall.
For years our citizens between
the ages of 18 and 21 have, in
time of peril, been summoned
to participate in the political
process that produces this fate-

ful summons. I urge Congress to
propose to the states a consti-
tutional amendment permitting
citizens to vote when they reach
the age of 18.
CONCLUSION
I want to add one final word
about the general purport of these
many recommendations.
Our government's powers are
wisely limited by the Constitution;
but quitehapart from those limi-
tations, there are things which no
government can do or should try
to do.
A government can strive, as
ours is striving, to maintain an
economic system whose doors are
open to enterprise and ambition-'
those personal qualities on which
economic growth largely depends.
But enterprise and ambition are
qualities which no government can
supply. Fortunately no American
government need concern itself on
this score; our people have these
qualities in good measure.
A government can sincerely
strive .for peace, as ours is striv-
ing, and ask its people to make
sacrifices for the sake of peace.
But no government can place
peace in the hearts of foreign rul-
ers. It is our duty then to ourselves
and to freedom itself to remain
strong in all those ways-spiritual,
economic, military-that will give
us maximum safety against, the
possibility of aggressive action by
others.
No government can inoculate
its people against the fatal ma-
terialism that plagues' our age.
Happily,.our people, though bless-
ed with more material goods than
any people in history, have always
reserved their first allegiance to,
the kingdom of the spirit, whiclh
is the true source of that freedom
we value above all material things
But a government can try, a
ours tries, to sense the deepest as-
pirations of the people, and to ex-
press them in political action at
home and abroad.
So long as action and aspiration
humbly and earnestly seek favor
in the sight of the Almighty, there
is no end to America's forward
road; there is no obstacle on it she
will not surmount in her march
toward a lasting peace in a free
and prosperous world.

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