For these reasons I have chosen to combine the customary Message on the State of the Union with the annual Budget Message, and to include in the Budget not only estimates for functions authorized by the Congress, but also for those which I recommend for its action.

I am also transmitting herewith the Fifth Quarterly Report of the Director of War Mobilization and Reconversion.[1] It is a comprehensive discussion of the present state of the reconversion program and of the immediate and long-range needs and recommendations.

[Footnote 1:  The report dated January 1, 1946, and entitled “Battle for Production” is printed in House Document 398 (79th Cong., 2d sess.).]

This constitutes, then, as complete a report as I find it possible to prepare now.  It constitutes a program of government in relation to the Nation’s needs.

With the growing responsibility of modern government to foster economic expansion and to promote conditions that assure full and steady employment opportunities, it has become necessary to formulate and determine the Government program in the light of national economic conditions as a whole.  In both the executive and the legislative branches we must make arrangements which will permit us to formulate the Government program in that light.  Such an approach has become imperative if the American political and economic system is to succeed under the conditions of economic instability and uncertainty which we have to face.  The Government needs to assure business, labor, and agriculture that Government policies will take due account of the requirements of a full employment economy.  The lack of that assurance would, I believe, aggravate the economic instability.

With the passage of a full employment bill which I confidently anticipate for the very near future, the executive and legislative branches of government will be empowered to devote their best talents and resources in subsequent years to preparing and acting on such a program.

I. FROM WAR TO PEACE—­THE YEAR

OF DECISION

In his last Message on the State of the Union, delivered one year ago, President Roosevelt said: 

“This new year of 1945 can be the greatest year of achievement in human history.

“1945 can see the final ending of the Nazi-Fascist reign of terror in Europe.

“1945 can see the closing in of the forces of retribution about the center of the malignant power of imperialistic Japan.

“Most important of all—­1945 can and must see the substantial beginning of the organization of world peace.”

All those hopes, and more, were fulfilled in the year 1945.  It was the greatest year of achievement in human history.  It saw the end of the Nazi-Fascist terror in Europe, and also the end of the malignant power of Japan.  And it saw the substantial beginning of world organization for peace.  These momentous events became realities because of the steadfast purpose of the United Nations and of the forces that fought for freedom under their flags.  The plain fact is that civilization was saved in 1945 by the United Nations.