MUSCLE SHOALS

The problem of Muscle Shoals seems to me to have assumed a place all out of proportion with its real importance.  It probably does not represent in market value much more than a first-class battleship, yet it has been discussed in the Congress over a period of years and for months at a time.  It ought to be developed for the production of nitrates primarily, and incidentally for power purposes.  This would serve defensive, agricultural, and industrial purposes.  I am in favor of disposing of this property to meet these purposes.  The findings of the special commission will be transmitted to the Congress for their information.  I am convinced that the best possible disposition can be made by direct authorization of the Congress.  As a means of negotiation I recommend the immediate appointment of a small joint special committee chosen from the appropriate general standing committees of the House and Senate to receive bids, which when made should be reported with recommendations as to acceptance, upon which a law should be enacted, effecting a sale to the highest bidder who will agree to carry out these purposes.

If anything were needed to demonstrate the almost utter incapacity of the National Government to deal directly with an industrial and commercial problem, it has been provided by our experience with this property.  We have expended vast fortunes, we have taxed everybody, but we are unable to secure results, which benefit anybody.  This property ought, to be transferred to private management under conditions which will dedicate it to the public purpose for which it was conceived.

RECLAMATION

The National Government is committed to a policy of reclamation and irrigation which it desires to establish on a sound basis and continue in the interest of the localities concerned.  Exhaustive studies have recently been made of Federal reclamation, which have resulted in improving the projects and adjusting many difficulties.  About one third of the projects is in good financial condition, another third can probably be made profitable, while the other third is under unfavorable conditions.  The Congress has already provided for a survey which will soon be embodied in a report.  That ought to suggest a method of relief which will make unnecessary further appeals to the Congress.  Unless this can be done, Federal reclamation will be considerably retarded.  With the greatly increased cost of construction and operation, it has become necessary to plan in advance, by community organization and selective agriculture, methods sufficient to repay these increasing outlays.