BITUMINOUS COAL

No progress appears to have been made within large areas of the bituminous coal industry toward creation of voluntary machinery by which greater assurance can be given to the public of peaceful adjustment of wage difficulties such as has been accomplished in the anthracite industry.  This bituminous industry is one of primary necessity and bears a great responsibility to the Nation for continuity of supplies.  As the wage agreements in the unionized section of the industry expire on April 1 next, and as conflicts may result which may imperil public interest, and have for many years often called for action of the Executive in protection of the public, I again recommend the passage of such legislation as will assist the Executive in dealing with such emergencies through a special temporary board of conciliation and mediation and through administrative agencies for the purpose of distribution of coal and protection of the consumers of coal from profiteering.  At present the Executive is not only without authority to act but is actually prohibited by law from making any expenditure to meet the emergency of a coal famine.

JUDICIARY

The Federal courts hold a high position in the administration of justice in the world.  While individual judicial officers have sometimes been subjected to just criticism, the courts as a whole have maintained an exceedingly high standard.  The Congress may well consider the question of supplying fair salaries and conferring upon the Supreme Court the same rule-making power on the law side of the district courts that they have always possessed on the equity side.  A bill is also pending providing for retirement after a certain number of years of service, although they have not been consecutive, which should have your favorable consideration.  These faithful servants of the Government are about the last that remain to be provided for in the postwar readjustments.

BANKING

There has been pending in Congress for nearly three years banking legislation to clarify the national bank act and reasonably to increase the powers of the national banks.  I believe that within the limitation of sound banking principles Congress should now and for the future place the national banks upon a fair equality with their competitors, the State banks, and I trust that means may be found so that the differences on branch-banking legislation between the Senate and the House of Representatives may be settled along sound lines and the legislation promptly enacted.

It would be difficult to overestimate the service which the Federal reserve system has already rendered to the country.  It is necessary only to recall the chaotic condition of our banking organization at the time the Federal reserve system was put into operation.  The old system consisted of a vast number of independent banking units, with scattered bank reserves which never could be mobilized in times of greatest need.  In spite of vast banking resources, there was no coordination of reserves or any credit elasticity.  As a consequence, a strain was felt even during crop-moving periods and when it was necessary to meet other seasonal and regularly recurring needs.