Showing posts with label 1919. Show all posts
Showing posts with label 1919. Show all posts

Friday, December 20, 2019

December 20, 1919. Pershing in race?


No, he wasn't.

A committee in Nebraska was attempting to draft him.  He'd end up declining.

Pershing fits into that group of American military heroes that the public seriously thought about elevating to the nation's highest office.  He fits into the subset of them that declined that invitation when it became serious.

Men, and at that time it was all men, were lining up to be candidates for the 1920 Presidential election, which in our era should give us pause.  It was December of 1919, and the candidates were not yet fully identified by any means.

Tuesday, December 17, 2019

Today In Wyoming's History: December 17, 1919. Vernon Baker born in Cheyenne


1919  Vernon Baker born in Cheyenne.  Baker is a recipient of the Congressional Medal of Honor for his actions in combat in World War Two, with his citation reading as follows:
For extraordinary heroism in action on 5 and 6 April 1945, near Viareggio, Italy. Then Second Lieutenant Baker demonstrated outstanding courage and leadership in destroying enemy installations, personnel, and equipment during his company's attack against a strongly entrenched enemy in mountainous terrain. When his company was stopped by the concentration of fire from several machine gun emplacements, he crawled to one position and destroyed it, killing three Germans. Continuing forward, he attacked an enemy observation post and killed two occupants. With the aid of one of his men, Lieutenant Baker attacked two more machine gun nests, killing or wounding the four enemy soldiers occupying these positions. He then covered the evacuation of the wounded personnel of his company by occupying an exposed position and drawing the enemy's fire. On the following night Lieutenant Baker voluntarily led a battalion advance through enemy mine fields and heavy fire toward the division objective. Second Lieutenant Baker's fighting spirit and daring leadership were an inspiration to his men and exemplify the highest traditions of the Armed Forces.
Baker had a rough start in life when his parents died while he was still young.  Partially raised by his grandparents, he learned how to hunt from his grandfather in order to put meat on the table.  Entering the Army during World War Two, he made the Army a career and retired in 1968 as a First Lieutenant, his rank at that time reflecting force reductions following World War Two.  He retired to Idaho where he chose to live as he was an avid hunter, and he died there in 2010.  Baker is a significant figure from Wyoming not only because he won the Congressional Medal of Honor, but because he was part of Wyoming's small African American community.

Sunday, December 15, 2019

December 15, 1919. No peace, no booze. Colorado approves the 19th Amendment.

The United States Supreme Court, on this day, made it plane.

No peace, no booze.


Of course, the reprieve that striking down provisions of the war time prohibition bill, which was always subject to questions about what it really applied to, would have been temporary anyhow  Nationwide prohibition was coming in next month with the application of the Volstead Act.  And many states, Wyoming and Colorado included, had voted in state prohibition anyhow.


The written opinion would actually be released the following day, Decmeber 16, and find that the prohibition authority was valid under Congress' war powers. The text of the short opinion was as follows:

Hamilton v. Kentucky Distilleries & Warehouse Co., 251 U.S. 146 (1919)
Hamilton v. Kentucky Distilleries & Warehouse Company
No. 589, 602
Argued November 20, 1919
Decided December 16, 1919
251 U.S. 146
Syllabus
The power to prohibit the liquor traffic as a means of increasing war efficiency is part of the war power of Congress, and its exercise without providing for compensation is no more limited by the Fifth Amendment than a like exercise of a state's police power would be limited by the Fourteenth Amendment. P. 251 U. S. 164.
The War-Time Prohibition Act, approved ten days after the armistice with Germany was signed, Act of November 21, 1918, c. 212, 40 Stat. 1046, provided:
"That after June thirtieth, nineteen hundred and nineteen, until the conclusion of the present war and thereafter until the termination of demobilization, the date of which hall be determined and proclaimed by the President of the United States, for the purpose of conserving the manpower of the Nation, and to increase efficiency in the production of arms, munitions, ships, food, and clothing for the Army and Navy, it shall be unlawful to sell for beverage purposes any distilled spirits, and during said time no distilled spirits held in bond shall be removed therefrom for beverage purposes except for export."
Held, in respect of liquors in bond, even if belonging to one who made and owned them before the act was passed and paid revenue taxes upon them since June 30, 1919:

(1) That the act was not an appropriation of such liquors for public purposes. P. 251 U. S. 157.
(2) That the time allowed for disposing of all liquors in bond on November 21, 1918, could not be declared unreasonable as a matter of law, even if they were not sufficiently ripened or aged to be disposed of advantageously during the period limited. P. 251 U. S. 158.
(3) That the prohibition was not in violation of the Fifth Amendment as a taking of property without compensation. P. 251 U. S. 157.
(4) That it was within the war power when passed (notwithstanding the cessation of hostilities under the armistice) as a means of war efficiency and for the support and care of the Army and Navy during demobilization. P. 251 U. S. 158.
A wide latitude of discretion must be accorded to Congress in the exercise of the war powers.
The court cannot inquire into the motives of Congress, in determining the validity of its acts, or into the wisdom of the legislation, nor pass upon the necessity for the exercise of a power possessed. 

It is settled that the war power carries with it the power to guard against immediate renewal of the conflict and to remedy the evils which have arisen from its rise and progress. Id.
Assuming that the continuing validity of an act passed under the war power may depend not upon the existence of a technical state of war, terminable only with the ratification of a treaty of peace or by a proclamation of peace, but upon some actual war emergency or necessity, the Court cannot say that the necessity for the prohibition had ceased when these suits were begun in view of the facts that the treaty of peace has not been concluded, that various war activities -- among them, national control of railroads -- continue, and that the manpower of the nation has not been completely restored to a peace footing.
The Eighteenth Amendment did not operate to repeal the War-Time Prohibition Act.
In defining the period of the prohibition, Congress, in the War-Time Prohibition Act, doubtless expecting that the war would be definitely ended by a peace under a ratified treaty or a proclamation before demobilization was complete, intended that the prohibition should continue until the date of the termination of demobilization had been definitely ascertained by the President and made known by him through a proclamation to that end.
The reference to the "demobilization of the army and navy" in the President's message communicating his veto of the National Prohibition Act, is not the proclamation required by the War-Time Prohibition Act.
In an exact sense, demobilization had not terminated then or when these suits were begun, as shown by the report on the subject of the Secretary of War, made to the President and transmitted to Congress; nor does it appear that it has yet so terminated.
There was good news for some Americans being held by Pancho Villa, they were let go.

And there was good news for women voters in Colorado as Colorado ratified the 19th Amendment, the last state to do so in 1919, and over a month before Wyoming, where women could already vote, did so.  Wyoming's Gov. Robert Carey would have had to call a special election in order to achieve this, which he repeatedly indicated he would not do.

The Non Partisan League, which put out the paper The Nonpartisan Leader, put out its December issue, featuring a rather over the top view of farmers.


The NPL was a semi socialist branch of the Republican Party that dated back to 1915.  It can, therefore, be regarded as a really radical branch of Republican Progressivism from that era.  It advocated for state control of grain mills and the like, and indeed it was influential in the upper Midwest where policies it advocated were put into effect during the Great Depression.  By that time it was part of the Democratic Party, having made the switch in 1920.

Sunday Morning Scene: Denver Catholic Register, December 1919.


Thursday, December 12, 2019

December 12, 1919. Debutantes and their pets

Clarion State Normal School, Dec. 12, 1919, Clarion, PA

The Clarion State Normal School, formerly a seminary, was photographed on this day in 1919.  The next year it would become a public institution with the State of Pennsylvania purchased it.  At that time it became a university, which is what it is today, as Clarion University.  A normal school is a teachers college.

And a photographer from the National Photo Company spent the day photographing debutantes and their pets.




Today In Wyoming's History: December 12, 1919

Today In Wyoming's History: December 12:


December 12


1919  Fourteen Spanish Flu deaths were reported in Washakie County for this week, which of course occurred during the Spanish Flu Pandemic.

The Spanish Influenza was a disaster of epic proportions which managed to impact nearly the entire globe.  While accounts vary, some accounts indicate that the flu epidemic first broke out, at least in its lethal form, in Camp Funston, Kansas. 

Wednesday, December 11, 2019

Mid Week At Work: Tobacco, cats, and dogs.

"Men rolling barrels of tobacco across platform over water onto the already crowded CORKER for Louisville, Dec. 11, 1919"

"War dogs decorated for bravery. Group of War dogs decorated by French War department for heroism work on the fighting front"

"This "Kitty" belonged to the Sultan of Turkey. Mrs. Martin K. Metcalf, wife of Commander Metcalf, U.S.N., holding "Pansy" a thoroughbred Turkish cat who formerly did her "meowing" in the palace of the Sultan of Turkey. The cat, brought to Washington from Turkey by Commander Metcalf, is eight years old. She will be one of the interesting entrants in the cat show to be held in Washington at the Wardman Park Hotel, February 1 and 2"

Tuesday, December 10, 2019

December 10, 1919. Air First and a Coal Day


The prize posted by the Australian government of 10,000 Australian pounds (then the unit of currency in Australia) for the first aircraft piloted by Australians to fly from England to the Australia was claimed by the crew of a Vickers Vimy bomber, entered into the contest by Vickers.

The plane was crewed by pilots Cpt. Ross Macpherson Smith and his brother Lt. Keith Macpherson Smith, with mechanics Sgt. W. H. Shiers and J.M. Bennett.  The plane made the trip from Hounslow Heath to Australian starting on November 12, 1919.

Cpt. Smith was killed test piloting a Vickers Viking seaplane in 1922.  Lt. Smith became a Vickers executive and an airline industry figure, dying of natural causes in 1955 at age 64.

Elsewhere, questions began to come up about the nature of diplomatic officer Jenkin's kidnapping even as Republicans continued to press for action of some sort against Mexico.  And as the mine strike ended, kids in Casper were let out of school due to lack of coal for heat.



Monday, December 9, 2019

"Repeal Day". Bad History

Twitter proclaimed December 5, Repeal Day, in honor of the 1932 repeal of the Constituatonal Amendment and accompanying Federal legislation that brought national prohibition of alcohol into effect.  Such luminaries as Julian Castro have noted:



Julián Castro
@JulianCastro
It’s #repealday, the day the United States ended the prohibition of alcohol. 86 years later, it’s time we end the federal prohibition of Cannabis once and for all. Legalize it. Regulate it. Expunge the records of the victims of the war on drugs.

Strong argument, correct?

Well, not really as its historically incorrect.

First of all, contrary to the way its often assumed, the repeal of prohibition didn't actually open the consumption of alcohol across the country.  Rarely appreciated in the story of prohibition, a huge wave of state prohibition statutes had been passed prior to the Federal government entering the picture with a Constitutional amendment. 

The real lesson, in regard to both the prohibition of alcohol and marijuana may be there, as its a story of misplaced Federal overreach.

Left along, the majority of American states were rocketing toward alcohol prohibition in the 1910s and many had already arrived there.  Wyoming got there months ahead of the Federal government in 1919. Colorado also had, with "bone dry" prohibition already coming into effect. 

Had prohibitionist not sought to impose prohibition over the entire country, the entire country may have gotten there on its own.  It was getting there.  But the Federal entry forced it on areas that weren't ready to accept it.  And that got the opposition to it really rolling.

Indeed, you have to wonder to what extent the country would remain dry if the Volstead Act and the Constitutional amendment had never been done. My guess is that a lot more of it would be today.  Contrary to what is imagined today, it was an extremely popular movement prior to national prohibition becoming the law.  And its overall success, in terms of national health, would speak for themselves if they were allowed to speak at all.

Indeed, one of the often missed aspects of the repeal of prohibition is that a lot of states, Wyoming included, used the repeal to fall back on their state prohibition laws, which had not been repealed, and work on new alcohol laws that controlled the trade much more strictly than had been the prior case.  States like Wyoming did follow the national lead, but they didn't go back to the open free for all that had been in place before.

The story of marijuana may be similar.  States made it illegal long before the Federal government entered the picture in the 1970s  Now that states are rushing away from their own state laws the Federal government isn't enforcing the Federal law, which is bad.  It would have been better, probably, if the Federal government had never entered the picture.  If it hand't, by now we'd have a longer history on what making it legal may mean, and I suspect the looming health disaster its likely to be, would be causing a lot of pause now.

Sunday, December 8, 2019

December 8, 1919. Wars averted and freezing in the dark.


The protocol the Germans were asked to accept due to their failure to fully comply with the provisions of the Versailles Treaty was modified, including taking out a use of force provision.

Resumed war, or quasi war, or at least military occupation of/with German, was thereby averted.


Meanwhile, President Wilson told Senator Fall to pound sand over a resolution that would have required the United States to sever diplomatic relations with Mexico over the recent Jenkins affair.

It's really debatable if such a resolution was constitutional.  Congress doesn't set diplomatic policy, the President does, and Congress' ability to do a thing like that would have been questionable at best.


And the coal shortage was so bad that it looked like Laramie was going to freeze in the dark on New Year's Eve.

And it'd be a dry New Years at that.

It was in fact already happening, with the restrictions that had been put in place.  And Laramie's notoriously cold weather was already present.


Saturday, December 7, 2019

Poster Saturday. December 1919


The December 1919 Coca Cola calendar, which featured actress Marion Davies.

Davies was an early, and talented, silent movie actress who would make the cross over to talking pictures. She was already the mistress of the married William Randolph Hearst at the time of her appearing on this calendar and indeed Hearst founded Cosmopolitan Productions specifically to back her career. Unusually for such relationships, Davies remained Hearst's mistress until his death and married for the first and only time shortly after that.

Davies isn't well remembered as actress today due to her unfavorable depiction in Citizen Kane, a fictionalized treatment of Hearst's life.  The film remains a great film to this day but it is fiction,  not a biography, and Davies isn't treated fairly in it.  Even efforts by the movies major star and producer Orson Welles failed to suffice to retrieve her image, something no doubt made more difficult by her long running illicit relationship with Hearst.

Hearst and Davies are widely believed to have been the parents of Patricia Lake, who was maintained to be Davies' niece during Davies' lifetime and was passed off as the daughter of a less successful acting sister.  Lake was also an actress and her true parentage, if that is her true parentage, was only revealed on her deathbed.  Lake bore a striking resemblance to Davies.

Marion Davies

Davies was the daughter of a New York lawyer whose original last name was Douras.  She was educated in a Catholic convent school and returned to her Faith prior to her death.

Friday, December 6, 2019

December 6, 1919. Rumors of War.

Germany had failed to comply with all of the provisions of the Versailles Treaty by this date, and as a result, a protocol was issued addressing it, and the German government asked to sign it.  To this date, they had not.

Here's what the protocol stated:
At the moment of proceeding to the first deposit of ratifications of the Treaty of Peace, it is placed on record that the following obligations, which Germany had undertaken to execute by the Armistice Conventions and supplementary Agreements, have not been executed or have not been completely fulfilled:  
(1) Armistice Convention of November 11,1918/5 Clause VII; obligation to deliver 5,000 locomotives and 150,000 wagons. 42 locomotives and 4,460 wagons are still to be delivered;
(2) Armistice Convention of November 11, 1918, Clause XII; obligation to withdraw the German troops in Russian territory within the frontiers of Germany, as soon as the' Allies shall think the moment suitable. The withdrawal of these troops has not been effected, despite the reiterated instructions of August 27, September 27 and October 10, 1919;
(3) Armistice Convention of November 11,1918, Clause XIV; obligation to cease at once all requisitions, seizures or coercive measures in Russian territory. The German troops have continued to have recourse to such measures;
(4) Armistice Convention of November 11, 1918, Clause XIX; obligation to return immediately all documents, specie, stocks, shares, paper money, together with plant for the issue thereof, affecting public or private interests in the invaded countries. The complete lists of specie and securities carried off, collected or confiscated by the Germans in the invaded countries have not been supplied;
(5) Armistice Convention of November 11, 1918, Clause XXII; obligation to surrender all German submarines. Destruction of the German submarine U.C. 48 off Ferrol by order of her German commander, and destruction in the North Sea of certain submarines proceeding to England for surrender;
(6) Armistice Convention of November 11, 1918, Clause XXIII; obligation to maintain in Allied ports the German ~arships designated by the Allied and Associated Powers, these ships being intended to be ultimately handedover. Clause XXXI; obligation not to destroy any ship before delivery. Destruction of the said ships at Scapa Flow on June 21, 1919;
(7) Protocol of December 17, 1918, Annex to the Armistice Convention of December 13, 1918; obligation to restore the works of art and artistic documents carried off in France and Belgium. All the works of art removed into the unoccupied parts of Germany have not been restored;
(8) Armistice Convention of January 16, 1919/6 Clause III and Protocol 392/1 Additional Clause III of July 25, 1919; obligation to hand over agricultural machinery in the place of the supplementary railway material provided for in Tables 1 and 2 annexed to the Protocol of Spa of December 17, 1918. The following machines had not been delivered on the stipulated date of October 1, 1919. 40 "Heucke" steam plough outfits; all the cultivators for the outfits; all the spades; 1,500 shovels; 1,130 T.F. 23/26 ploughs; 1,765 T.F. 18/21 ploughs; 1,512 T.F. 23/26 ploughs; 629 T.F. 0 m. 20 Brabant ploughs; 1,205 T.F.o m. 26 Brabant ploughs; 4,282 harrows of 2 k. 500; 2,157 steel cultivators; 966 2 m. 50 manure distributors; 1,608 3 m. 50 manure distributors;
(9) Armistice Convention of January 16, 1919, Clause VI; obligation to restore the industrial material carried off from French and Belgian territory. All this material has not been restored;
(10) Convention of January 16,1919, Clause VIII; obligation to place the German merchant fleet under the control of the Allied and Associated Powers. A certain number of ships whose delivery had been demanded under this clause have not yet been handed over;
(11) Protocols of the Conferences of Brussels of March 13 and 14, 1919; obligation not to export war material of all kinds. Exportation of aeronautical material to Sweden, Holland and Denmark.  
A certain number of the above provisions which have not been executed or have not been executed in full have been renewed by the Treaty of June 28, 1919, whose coming into force will ipso facto render the sanctions there provided applicable. This applies particularly to the various measures to be taken on account of reparation.
Further, the question of the evacuation of the Baltic provinces has been the subject of an exchange of notes and of decisions which are being carried out. The Allied and Associated Powers expressly confirming the contents of their notes, Germany by the present Protocol undertakes to continue to execute them faithfully and strictly.
Finally, as the Allied and Associated Powers could not allow to p'ass without penalty the other failures to execute the Armistice Conventions and violations so serious as the destruction of the German fleet at Scapa Flow, the destruction of U.C. 48 off Ferrol and the destruction in the North Sea of certain submarines on their way to England for surrender, Germany undertakes:
(1) A. To hand over as reparation for the destruction of the German fleet at Scapa Flow: .
(a) Within 60 days from the date of the signature of the present Protocol and in the conditions laid down in the second paragraph of Article 185 of the Treaty of Peace the five following light cruisers:  
Konigsberg,
Pillau,
Graudenz,
Regensburg,
Strassburg.  
(b) Within 90 days from the date of the signature of the present Protocol, and in good condition and ready for service in every respect, such a number of floating docks, floating cranes, tugs and dredgers, equivalent to a total displacement of 400,000 tons, as the Principal Allied and Associated Powers may require. As regards the docks, the lifting power will be considered as the displacement. In the number of docks referred to above there will be about 75 per cent. of docks over 10,000 tons. The whole of this material will be handed over on the spot;  
B. To deliver within 10 days from the signature of the present Protocol a complete list of all floating docks, floating cranes, tugs and dredgers which are German property. This list, which will be delivered to the Naval Inter Allied Commission of Control referred to in Article 209 of the Treaty of Peace, will specify the material which on November 11, 1918, belonged to the German Government or in which the German Government had at that date an important interest; 
C. The officers and men who formed the crews of the warships sunk at Scapa Flow and who are at present detained by the Principal Allied and Associated Powers will, with the exception of those whose surrender is provided for by Article 228 of the Treaty of Peace, be repatriated at latest when Germany has carried out the provisions of Paragraphs A. and B. above;  
D. The destroyer B. 98 will be considered as one of the 42 destroyers whose delivery is provided for by Article 185 of the Treaty of Peace;  
(2) To hand over within 10 days from the signature of the present Protocol the engines and motors of the submarines U. 137 and U. 138 as compensation for the destruction of U.C. 48;  
(3) To pay to the Allied and Associated Governments before January 31, 1920, the value of the aeronautical material exported, in accordance with the decision which will be given and the valuation which will be made and notified by the Aeronautical Inter-Allied Commission of Control referred to in Article 210 of the Treaty of Peace. In the event of Germany not fulfilling these obligations within the periods laid down above, the Allied and Associated Powers reserve the right to take all military or other measures of coercion which they may consider appropriate.
There Versailles Treaty was complicated to start with, and things clearly hadn't been going smoothly in Germany.  The question now was what to do about it, and the threatened solution was military.


This of course followed the ongoing difficulties with Mexico.  The U.S., for its part, hadn't signed the Versailles Treaty, but it still had troops on occupation duty in the country.


Rumors of war were definitely not going away.  It would be enough to make a person want to curl up with a good book and forget the news of the day.


Thursday, December 5, 2019

December 5, 1919. One Crisis with Mexico Diffused, another Occurs


Diplomatic officer Jenkins was released by the Mexican judicial system on this day in 1919, which was also the same day that Mexican bandits staged a cross border raid.  At least the release brought the two countries back from the brink of war.

On the same day, Laramie was looking at closing buildings due to the strike induced national coal shortage.

Tuesday, December 3, 2019

December 3, 1919. The Carlisle News Hits the Press. Bicycles and horses.




Banner headlines appeared in the local press on this day in 1919.


It was a sad end, as we related yesterday.


And already it was noted his wound was not fatal.

And so this phase of the story concluded.

Carlisle, of course, robbed trains, one of the three big means of terrestrial transpiration at the time. . . train, automobile, and horse.

The age of the bicycle, which had already come and gone in North America, but not elsewhere, was still sufficiently recent that these gentlemen turned out, on the same day, with their bikes.


Meanwhile, elsewhere, some well turned out horsewomen posed with their mounts.















Monday, December 2, 2019

December 2, 1919. Bill Carlisle's luck runs out. Wilson sends a message.

It had actually run out some time ago.


He hadn't made to the Hole in the Wall, as people had been speculating, but he had made it relatively far from Medicine Bow.  Indeed, he must have fled on something like the Fetterman Road or the down Sybille Canyon or something to end up where he did, the mountains outside of Glendo Wyoming.


He'd been wounded in the hand his last train robbery when he disarmed a young man who attempted to shoot him.  That was minor in comparison to what happened this time.  A member of the posse that arrested him shot him in the chest on this occasion, causing him to have to be taken to Douglas on a pack mule.  He'd spend nearly a month there following surgery that saved his life.


That posse had been pursuing him so his last days of freedom weren't enjoyable ones.  His next month obviously wouldn't be either.  Following his recovery he was sent back to the penitentiary in Rawlins to serve another sixteen years.

The Union Pacific came out ahead, compared to 1916, when it had spent $15,000 searching for him. Relying on this occasion on local law enforcement, even though it complained about it, it came out cost ahead.

As the mystery of Carlisle's whereabouts was resolved, another one developed elsewhere, that being the mysterious disappearance of Canadian theatre magnate Ambrose Small and his secretary Jack Doughty.  Ambrose had sold his theatre holdings earlier that day and simply disappeared, never to be found.

Doughty was and was extradited for having stolen bonds that he cashed and deposited that same day. But there was no evidence that he was connected with Small's disappearance or that he knew anything about it.  Indeed, Small's predilections, which included gambling and affairs with actresses, and disappearances for brief periods of time, made determining what happened to him difficult.

Also on this day, Woodrow Wilson sent his State of the Union message to Congress. Still recovering from his stroke, he could not deliver it in person.  It was the first written State of the Union Message to Congress since 1800.

TO THE SENATE AND HOUSE OF REPRESENTATIVES:
I sincerely regret that I cannot be present at the opening of this session of the Congress. I am thus prevented from presenting in as direct a way as I could wish the many questions that are pressing for solution at this time. Happily, I have had the advantage of the advice of the heads of the several executive departments who have kept in close touch with affairs in their detail and whose thoughtful recommendations I earnestly second.
In the matter of the railroads and the readjustment of their affairs growing out of Federal control, I shall take the liberty at a later date of addressing you.
I hope that Congress will bring to a conclusion at this session legislation looking to the establishment of a budget system. That there should be one single authority responsible for the making of all appropriations and that appropriations should be made not independently of each other, but with reference to one single comprehensive plan of expenditure properly related to the nation's income, there can be no doubtI believe the burden of preparing the budget must, in the nature of' the case, if the work is to be properly done and responsibility concentrated instead of divided, rest upon the executive. The budget so prepared should be submitted to and approved or amended by a single committee of each House of Congress and no single appropriation should be made by the Congress, except such as may have been included in the budget prepared by the executive or added by the particular committee of Congress charged with the budget legislation.
Another and not less important aspect of the problem is the ascertainment of the economy and efficiency with which the moneys appropriated are expended. Under existing law the only audit is for the purpose of ascertaining whether expenditures have been lawfully made within the appropriations. No one is authorized or equipped to ascertain whether the money has been spent wisely, economically and effectively. The auditors should be highly trained officials with permanent tenure in the Treasury Department, free of obligations to or motives of consideration for this or any subsequent administration, and authorized and empowered to examine into and make report upon the methods employed and the results obtained by the executive departments of the Government. Their reports should be made to the Congress and to the Secretary of the Treasury.
I trust that the Congress will give its immediate consideration to the problem of future taxation. Simplification of the income and profits taxes has become an immediate necessity. These taxes performed indispensable service during the war. They must, however, be simplified, not only to save the taxpayer inconvenience and expense, but in order that his liability may be made certain and definite.
With reference to the details of the Revenue Law, the Secretary of the Treasury and the Commissioner of Internal Revenue will lay before you for your consideration certain amendments necessary or desirable in connection with the administration of the law-recommendations which have my approval and support. It is of the utmost importance that in dealing with this matter the present law should not be disturbed so far as regards taxes for the calendar year 1920 payable in the calendar year 1921. The Congress might well consider whether the higher rates of income and profits taxes can in peace times be effectively productive of revenue, and whether they may not, on the contrary, be destructive of business activity and productive of waste and inefficiency. There is a point at which in peace times high rates of income and profits taxes discourage energy, remove the incentive to new enterprises, encourage extravagant expenditures and produce industrial stagnation with consequent unemployment and other attendant evils.
The problem is not an easy one. A fundamental change has taken place with reference to the position of America in the world's affairs. The prejudice and passions engendered by decades of controversy between two schools of political and economic thought,-the one believers in protection of American industries, the other believers in tariff for revenue only,-must be sbordinated to the single consideration of the public interest in the light of utterly changed conditions. Before the war America was heavily the debtor of the rest of the world and the interest payments she had to make to foreign countries on American securities held abroad, the expenditures of American travelers abroad and the ocean freight charges she had to pay to others, about balanced the value of her pre-war favorable balance of trade. During the war America's exports nave been greatly stimulated, and increased prices have increased their value. On the other hand, she has purchased a large proportion of the American securities previously held abroad, has loaned some $9,000,000,000 to foreign governments, and has built her own ships. Our favorable balance of trade has thus been greatly increased and Europe has been deprived of the means of meeting it heretofore existing. Europe can have only three ways of meeting the favorable balance of trade in peace times: by imports into this country of gold or of goods, or by establishing new credits. Europe is in no position at the present time to ship gold to us nor could we contemplate large further imports of gold into this country without concern. The time has nearly passed for international governmental loans and it will take time to develop in this country a market for foreign securities. Anything, therefore, which would tend to prevent foreign countries from settling for our exports by shipments of goods into this country could only have the effect of preventing them from paying for our exports and therefore of preventing the exports from being made. The productivity of the country, greatly stimulated by the war, must find an outlet by exports to foreign countries, and any measures taken to prevent imports will inevitably curtail exports, force curtailment of production, load the banking machinery of the country with credits to carry unsold products and produce industrial stagnation and unemployment. If we want to sell, we must be prepared to buy. Whatever, therefore, may have been our views during the period of growth of American business concerning tariff legislation, we must now adjust our own economic life to a changed condition growing out of the fact that American business is full grown and that America is the greatest capitalist in the world.
No policy of isolation will satisfy the growing needs and opportunities of America. The provincial standards and policies of the past, which have held American business as if in a strait-jacket, must yield and give way to the needs and exigencies of the new day in which we live, a day full of hope and promise for American business, if we will but take advantage of the opportunities that are ours for the asking. The recent war has ended our isolation and thrown upon us a great duty and responsibility. The United States must share the expanding world market. The United States desires for itself only equal opportunity with the other nations of the world, and that through the process of friendly cooperation and fair competition the legitimate interests of the nations concerned may be successfully and equitably adjusted.
There are other matters of importance upon which I urged action at the last session of Congress which are still pressing for solution. I am sure it is not necessary for me again to remind you -that there is one immediate and very practicable question resulting from the war which we should meet in the most liberal spirit. It is a matter of recognition and relief to our soldiers. I can do no better than to quote from my last message urging this very action:
"We must see to it that our returning soldiers are assisted in every practicable way to find the places for which they are fitted in the daily work of the country. This can be done by developing and maintaining upon an adequate scale the admirable organization created by the Department of Labor for placing men seeking work; and it can also be done, in at least one very great field, by creating new opportunities for individual enterprise. The Secretary of the Interior has pointed out the way by which returning soldiers may be helped to find and take up land in the hitherto undeveloped regions of the country which the Federal Government has already prepared, or can readily prepare, for cultivation and also on many of the cutover or neglected areas which lie within the limits of the older states; and I once more take the liberty of recommending very urgently that his plans shall receive the immediate and substantial support of the Congress."
In the matter of tariff legislation, I beg to call your attention to the statements contained in my last message urging legislation with reference to the establishment of the chemical and dyestuffs industry in America:
"Among the industries to which special consideration should be given is that of the manufacture of dyestuffs and related chemicals. Our complete dependence upon German supplies before the war made the interruption of trade a cause of exceptional economic disturbance. The close relation between the manufacture of dyestuffs, on the one hand, and of explosive and poisonous gases, on the other, moreover, has given the industry an exceptional significance and value. Although the United States will gladly and unhesitatingly join in the programme of international disarmament, it will, nevertheless, be a policy of obvious prudence to make certain of the successful maintenance of many strong and well-equipped chemical plants. The German chemical industry, with which we will be brought into competition, was -and may well be again, a thoroughly knit monopoly capable of exercising a competition of a peculiarly insidious and dangerous kind."
During the war the farmer performed a vital and willing service to the nation. By materially increasing the production of his land, he supplied America and the Allies with the increased amounts of food necessary to keep their immense armies in the field. He indispensably helped to win the war. But there is now scarcely less need of increasing the production in food -and the necessaries of life. I ask the Congress to consider means of encouraging effort along these lines. The importance of doing everything possible to promote production along economical lines, to improve marketing, and to make rural life more attractive and healthful, is obvious. I would urge approval of the plans already proposed to the Congress by the Secretary of Agriculture, to secure the essential facts required for the proper study of this question, through the proposed enlarged programmes for farm management studies and crop estimates. I would urge, also, the continuance of Federal participation in the building of good roads, under the terms of existing law and under the direction of present agencies; the need of further action on the part of the States and the Federal Government to preserve and develop our forest resources, especially through the practice of better forestry methods on private holdings and the extension of the publicly owned forests; better support for country schools and the more definite direction of their courses of study along lines related to rural problems; and fuller provision for sanitation in rural districts and the building up of needed hospital and medical facilities in these localities. Perhaps the way might be cleared for many of these desirable reforms by a fresh, comprehensive survey made of rural conditions by a conference composed of representatives of the farmers and of the agricultural agencies responsible for leadership.
I would call your attention to the widespread condition of political restlessness in our body politic. The causes of this unrest, while various and complicated, are superficial rather than deep-seated. Broadly, they arise from or are connected with the failure on the part of our Government to arrive speedily at a just and permanent peace permitting return to normal conditions, from the transfusion of radical theories from seething European centers pending such delay, from heartless profiteering resulting in the increase of the cost of living, and lastly from the machinations of passionate and malevolent agitators. With the return to normal conditions, this unrest will rapidly disappear. In the meantime, it does much evil. It seems to me that in dealing with this situation Congress should not be impatient or drastic but should seek rather to remove the causes. It should endeavor to bring our country back speedily to a peace basis, with ameliorated living conditions under the minimum of restrictions upon personal liberty that is consistent with our reconstruction problems. And it should arm the Federal Government with power to deal in its criminal courts with those persons who by violent methods would abrogate our time-tested institutions. With the free expression of opinion and with the advocacy of orderly political change, however fundamental, there must be no interference, but towards passion and malevolence tendine to incite crime and insurrection under guise of political evolution there should be no leniency. Legislation to this end has been recommended by the Attorney General and should be enacted. In this direct connection, I would call your attention to my recommendations on August 8th, pointing out legislative measures which wouldbe effective in controlling and bringing down the present cost of living, which contributes so largely to this unrest. On only one of these recommendations has the Congress acted. If the Government's campaign is to be effective, it is necessary that the other steps suggested should be acted on at once.
I renew and strongly urge the necessity of the extension of the present Food Control Act as to the period of time in which it shall remain in operation. The Attorney General has submitted a bill providing for an extension of this Act for a period of six months. As it now stands, it is limited in operation to the period of the war and becomes inoperative upon the formal proclamation of peace. It is imperative that it should be extended at once. The Department of justice has built up extensive machinery for the purpose of enforcing its provisions; all of which must be abandoned upon the conclusion of peace unless the provisions of this Act are extended.
During this period the Congress will have an opportunity to make similar permanent provisions and regulations with regard to all goods destined for interstate commerce and to exclude them from interstate shipment, if the requirements of the law are not compiled with. Some such regulation is imperatively necessary. The abuses that have grown up in the manipulation of prices by the withholding of foodstuffs and other necessaries of life cannot otherwise be effectively prevented. There can be no doubt of either the necessity of the legitimacy of such measures.
As I pointed out in my last message, publicity can accomplish a great deal in this campaign. The aims of the Government must be clearly brought to the attention of the consuming public, civic organizations and state officials, who are in a position to lend their assistance to our efforts. You have made available funds with which to carry on this campaign, but there is no provision in the law authorizing their expenditure for the purpose of making the public fully informed about the efforts of the Government. Specific recommendation has been made by the Attorney General in this regard. I would strongly urge upon you its immediate adoption, as it constitutes one of the preliminary steps to this campaign.
I also renew my recommendation that the Congress pass a law regulating cold storage as it is regulated, for example, by the laws of the State of New Jersey, which limit the time during which goods may be kept in storage, prescribe the method of disposing of them if kept beyond the permitted period, and require that goods released from storage shall in all cases bear the date of their receipt. It would materially add to the serviceability of the law, for the purpose we now have in view, if it were also prescribed that all goods released from storage for interstate shipment should have plainly marked upon each package the selling or market price at which they went into storage. By this means the purchaser would always be able to learn what profits stood between him and the producer or the wholesale dealer.
I would also renew my recommendation that all goods destined for interstate commerce should in every case, where their form or package makes it possible, be plainly marked with the price at which they left the hands of the producer.
We should formulate a law requiring a Federal license of all corporations engaged in interstate commerce and embodying in the license or in the conditions under which it is to be issued, specific regulations designed to secure competitive selling and prevent unconscionable profits in the method of marketing. Such a law would afford a welcome opportunity to effect other much needed reforms in the business of interstate shipment and in the methods of corporations which are engaged in it; but for the moment I confine my recommendations to the object immediately in hand, which is to lower the cost of living.
No one who has observed the march of events in the last year can fail to note the absolute need of a definite programme to bring about an improvement in the conditions of labor. There can be no settled conditions leading to increased production and a reduction in the cost of living if labor and capital are to be antagonists instead of partners. Sound thinking and an honest desire to serve the interests of the whole nation, as distinguished from the interests of a class, must be applied to the solution of this great and pressing problem. The failure of other nations to consider this matter in a vigorous way has produced bitterness and jealousies and antagonisms, the food of radicalism. The only way to keep men from agitating against grievances is to remove the grievances. An unwillingness even to discuss these matters produces only dissatisfaction and gives comfort to the extreme elements in our country which endeavor to stir up disturbances in order to provoke governments to embark upon a course of retaliation and repression. The seed of revolution is repression. The remedy for these things must not be negative in character. It must be constructive. It must comprehend the general interest. The real antidote for the unrest which manifests itself is not suppression, but a deep consideration of the wrongs that beset our national life and the application of a remedy.
Congress has already shown its willingness to deal with these industrial wrongs by establishing the eight-hour day as the standard in every field of labor. It has sought to find a way to prevent child labor. It has served the whole country by leading the way in developing the means of preserving and safeguarding lives and health in dangerous industries. It must now help in the difficult task of finding a method that will bring about a genuine democratization of industry, based upon the full recognition of the right of those who work, in whatever rank, to participate in some organic way in every decision which directly affects their welfare. It is with this purpose in mind that I called a conference to meet in Washington on December 1st, to consider these problems in all their broad aspects, with the idea of bringing about a better understanding between these two interests.
The great unrest throughout the world, out of which has emerged a demand for an immediate consideration of the difficulties between capital and labor, bids us put our own house in order. Frankly, there can be no permanent and lasting settlements between capital and labor which do not recognize the fundamental concepts for which labor has been struggling through the years. The whole world gave its recognition and endorsement to these fundamental purposes in the League of Nations. The statesmen gathered at Versailles recognized the fact that world stability could not be had by reverting to industrial standards and conditions against which the average workman of the world had revolted. It is, therefore, the task of the statesmen of this new day of change and readjustment to recognize world conditions and to seek to bring about, through legislation, conditions that will mean the ending of age-long antagonisms between capital and labor and that will hopefully lead to the building up of a comradeship which will result not only in greater contentment among the mass of workmen but also bring about a greater production and a greater prosperity to business itself.
To analyze the particulars in the demands of labor is to admit the justice of their complaint in many matters that lie at their basis. The workman demands an adequate wage, sufficient to permit him to live in comfort, unhampered by the fear of poverty and want in his old age. He demands the right to live and the right to work amidst sanitary surroundings, both in home and in workshop, surroundings that develop and do not retard his own health and wellbeing; and the right to provide for his children's wants in the matter of health and education. In other words, it is his desire to make the conditions of his life and the lives of those dear to him tolerable and easy to bear.
The establishment of the principles regarding labor laid down in the covenant of the League of Nations offers us the way to industrial peace and conciliation. No other road lies open to us. Not to pursue this one is longer to invite enmities, bitterness, and antagonisms which in the end only lead to industrial and social disaster. The unwilling workman is not a profitable servant. An employee whose industrial life is hedged about by hard and unjust conditions, which he did not create and over which he has no control, lacks that fine spirit of enthusiasm and volunteer effort which are the necessary ingredients of a great producing entity. Let us be frank about this solemn matter. The evidences of world-wide unrest which manifest themselves in violence throughout the world bid us pause and consider the means to be found to stop the spread of this contagious thing before it saps the very vitality of the nation itself. Do we gain strength by withholding the remedy? Or is it not the business of statesmen to treat these manifestations of unrest which meet us on every hand as evidences of an economic disorder and to apply constructive remedies wherever necessary, being sure that in the application of the remedy we touch not the vital tissues of our industrial and economic life? There can be no recession of the tide of unrest until constructive instrumentalities are set up to stem that tide.
Governments must recognize the right of men collectively to bargain for humane objects that have at their base the mutual protection and welfare of those engaged in all industries. Labor must not be longer treated as a commodity. It must be regarded as the activity of human beings, possessed of deep yearnings and desires. The busi ness man gives his best thought to the repair and replenishment of his machinery, so that its usefulness will not be impaired and its power to produce may always be at its height and kept in full vigor and motion. No less regard ought to be paid to the human machine, which after all propels the machinery of the world and is the great dynamic force that lies back of all industry and progress. Return to the old standards of wage and industry in employment are unthinkable. The terrible tragedy of war which has just ended and which has brought the world to the verge of chaos and disaster would be in vain if there should ensue a return to the conditions of the past. Europe itself, whence has come the unrest which now holds the world at bay, is an example of standpatism in these vital human matters which America might well accept as an example, not to be followed but studiously to be avoided. Europe made labor the differential, and the price of it all is enmity and antagonism and prostrated industry, The right of labor to live in peace and comfort must be recognized by governments and America should be the first to lay the foundation stones upon which industrial peace shall be built.
Labor not only is entitled to an adequate wage, but capital should receive a reasonable return upon its investment and is entitled to protection at the hands of the Government in every emergency. No Government worthy of the name can "play" these elements against each other, for there is a mutuality of interest between them which the Government must seek to express and to safeguard at all cost.
The right of individuals to strike is inviolate and ought not to be interfered with by any process of Government, but there is a predominant right and that is the right of the Government to protect all of its people and to assert its power and majesty against the challenge of any class. The Government, when it asserts that right, seeks not to antagonize a class but simply to defend the right of the whole people as against the irreparable harm and injury that might be done by the attempt by any class to usurp a power that only Government itself has a right to exercise as a protection to all.
In the matter of international disputes which have led to war, statesmen have sought to set up as a remedy arbitration for war. Does this not point the way for the settlement of industrial disputes, by the establishment of a tribunal, fair and just alike to all, which will settle industrial disputes which in the past have led to war and disaster? America, witnessing the evil consequences which have followed out of such disputes between these contending forces, must not admit itself impotent to deal with these matters by means of peaceful processes. Surely, there must be some method of bringing together in a council of peace and amity these two great interests, out of which will come a happier day of peace and cooperation, a day that will make men more hopeful and enthusiastic in their various tasks, that will make for more comfort and happiness in living and a more tolerable condition among all classes of men. Certainly human intelligence can devise some acceptable tribunal for adjusting the differences between capital and labor.
This is the hour of test and trial for America. By her prowess and strength, and the indomitable courage of her soldiers, she demonstrated her power to vindicate on foreign battlefields her conceptions of liberty and justice. Let not her influence as a mediator between capital and labor be weakened and her own failure to settle matters of purely domestic concern be proclaimed to the world. There are those in this country who threaten direct action to force their will, upon a majority. Russia today, with its blood and terror, is a painful object lesson of the power of minorities. It makes little difference what minority it is; whether capital or labor, or any other class; no sort of privilege will ever be permitted to dominate this country. We are a partnership or nothing that is worth while. We are a democracy, where the majority are the masters, or all the hopes and purposes of the men who founded this government have been defeated and forgotten. In America there is but one way by which great reforms can be accomplished and the relief sought by classes obtained, and that is through the orderly processes of representative government. Those who would propose any other method of reform are enemies of this country. America will not be daunted by threats nor lose her composure or calmness in these distressing times. We can afford, in the midst of this day of passion and unrest, to be self - contained and sure. The instrument of all reform in America is the ballot. The road to economic and social reform in America is the straight road of justice to all classes and conditions of men. Men have but to follow this road to realize the full fruition of their objects and purposes. Let those beware who would take the shorter road of disorder and revolution. The right road is the road of justice and orderly process.