Agriculture has lagged behind industry in achieving that unity of effort which modern economic life demands.  The cooperative movement, which is gradually building the needed organization, is in harmony with public interest and therefore merits public encouragement.

THE RESPONSIBILITY OF THE STATES

Important phases of public policy related to agriculture lie within the sphere of the States.  While successive reductions in Federal taxes have relieved most farmers of direct taxes to the National Government, State and local levies have become a serious burden.  This problem needs immediate and thorough study with a view to correction at the earliest possible moment.  It will have to be made largely by the States themselves.

COMMERCE

It is desirable that the Government continue its helpful attitude toward American business.  The activities of the Department of Commerce have contributed largely to the present satisfactory position in our international trade, which has reached about $9,000,000,000 annually.  There should be no slackening of effort in that direction.  It is also important that the department’s assistance to domestic commerce be continued.  There is probably no way in which the Government can aid sound economic progress more effectively than by cooperation with our business men to reduce wastes in distribution.

COMMERCIAL AERONAUTICS

Continued progress in civil aviation is most gratifying.  Demands for airplanes and motors have taxed both the industry and the licensing and inspection service of the Department of Commerce to their capacity.  While the compulsory licensing provisions of the air commerce act apply only to equipment and personnel engaged in interstate and foreign commerce, a Federal license may be procured by anyone possessing the necessary qualifications.  State legislation, local airport regulations, and insurance requirements make such a license practically indispensable.  This results in uniformity of regulation and increased safety in operation, which are essential to aeronautical development.  Over 17,000 young men and women have now applied for Federal air pilot’s licenses or permits.  More than 80 per cent of them applied during the past year.

Our national airway system exceeds 14,000 miles in length and has 7,500 miles lighted for night operations.  Provision has been made for lighting 4,000 miles more during the current fiscal year and equipping an equal mileage with radio facilities.  Three-quarters of our people are now served by these routes.  With the rapid growth of air mail, express, and passenger service, this new transportation medium is daily becoming a more important factor in commerce.  It is noteworthy that this development has taken place without governmental subsidies.  Commercial passenger flights operating on schedule have reached 13,000 miles per day.