UNITED STATES CONGRESS.

New Zealand Herald, Volume LX, Issue 18577, 8 December 1923, Page 11

UNITED STATES CONGRESS.

PRESIDENT'S MESSAGE.

REDUCTION OT TAXATION.

WORLD COURT OF JUSTICE.

PARTICIPATION URGED.

By Telegraph—Press Association—Copyright. A. and N.Z. WASHINGTON. Dec. 6. The President, Mr Calvin Coolidge, delivered his message to Congress to-day. Ho forecasted a reduction of taxation, announced his opposition to the granting of a bonus to ex-service men, reiterated that prohibition must and would be enforced, and declared that the army and navy should be strengthened, restriction of immigration continued, and the rights of 12,000,C00 negroes in the United States protected and lynching prevented. Dealing with agricultural depression, he said that Federal price-fixing and other artificial aid to the farmer would be valueless. The problem of the farmer could be solved by diversification of crops and co-opera-tive marketing. , Regarding foreign affairs, Mr. Coolidge endorsed the late Mr. Harding's proposal that the United States should join, with reservations, the Permanent Court of International Justice, announced his opposition to the cancellation of foreign debts, and declared that the Russian Government should not be recognised until Russia recognised the ownership of private property and her own debts. Republican Insurgents Give Way. The way was paved for Mr. Coolidge to deliver his message by the re-election of Mr. Frederick 'Gillett as Speaker of the House of Representatives. The Republican insurgents voted for Mr. Gillett for the first time since the deadlock developed on Monday, abandoning the fight when they were assured that they would have an opportunity to offer amendments to the rules of the House. , The President's message forecasted a reduction of taxation by 300,000,000 dollars, His Budget estimates expenditure at 3,298,080,944 dollars, and receipts at 3,693,762,078 dollars. Reduction of income tax will be possible because of the big surplus;. Drastic economies in the cost of Government dosigned to effect a saving of about 275,000,000 dollars .are also recommended. Appropriations asked for the year beginning next July aggregate 260,000,000 dollars less than tho current year. The cost of national defence is estimated at 648.531,238 dollars, a reduction of 35,000,000 dollars. Military pensions, retirement pay, etc., are estimated at 656,300,606 dollars, a reduction of 50,000.000 dollars. Fixed charges on account of the public debt total 1,372,277,975 dollars, including 890,000,000 dollars for interest. Expenditure for naval construction is estimated at 35,000,000 dollars, for air servicer 15.000,000 dollars, and for naval pay at 116,000,000 dollars. The cost of prohibition enforcement is estimated at 10,531,324 dollars, an increase of 2,000,000 dollars. Prohibition Enforcement Fleet. Supplementary estimates will later include 20,000,000 dollars for additional vessels to prevent liquor importations. Mr. Coolidge thinks a much bigger field force is necessary to enforce prohibition, and swift power boats needed to prevent liquor smuggling. Referring to the soldiers' bonus proposal, Mr. Coolidge said the United States had already spent 2,000 million dollars on disabled soldiers, and was preparing to spend another 500 million dollars, brut there was no sound reason for compensation to able-bodied men when the country was prosperous and employment available. In regard to the Permanent Court of International Justice, Mr. Coolidge said that American policy was always guided by the principles of avoiding permanent political alliances which meant the sacrifice of independence, and of peaceful settlement of international questions. "As I wish the Court to bo established, this proposal, presenting the only practical plan on which many nations have ever agreed, though it may not meet every desire, I commend to the favourable Consideration of tho Senate, with reservations indicating our refusal to adhere to tho League of Nations." Adjustment of - Foreign Debts. Mr. Coolidge said he favoured the adjustment of foreign debts on the principle adopted in regard to the British debt. Mr. Coolidge's appearance before Congress was notable for his dismissal of foreign affairs with a few brief announcements of policy, and the devotion t>f nine-tenths of his address to domestic affairs, which, ho declared, was the country's main problem. Ho urges that Congress should immediately reduce taxation in order to save the United States from post-war economic disorders, which liavo affected all nations; tho tariff law should remain unchanged, its elastic provisons being sufficient to prevent inequalities; and that Government-owned merchant marine should be transferred to private ownership.