In reporting to the Congress the state of the Union, I find it impossible to characterize it other than one of general peace and prosperity.  In some quarters our diplomacy is vexed with difficult and as yet unsolved problems, but nowhere are we met with armed conflict.  If some occupations and areas are not flourishing, in none does there remain any acute chronic depression.  What the country requires is not so much new policies as a steady continuation of those which are already being crowned with such abundant success.  It can not be too often repeated that in common with all the world we are engaged in liquidating the war.

In the present short session no great amount of new legislation is possible, but in order to comprehend what is most desirable some survey of our general situation is necessary.  A large amount of time is consumed in the passage of appropriation bills.  If each Congress in its opening session would make appropriations to continue for two years, very much time would be saved which could either be devoted to a consideration of the general needs of the country or would result in decreasing the work of legislation.  Economy

Our present state of prosperity has been greatly promoted by three important causes, one of which is economy, resulting in reduction and reform in national taxation.  Another is the elimination of many kinds of waste.  The third is a general raising of the standards of efficiency.  This combination has brought the perfectly astonishing result of a reduction in the index price of commodities and an increase in the index rate of wages.  We have secured a lowering of the cost to produce and a raising of the ability to consume.  Prosperity resulting from these causes rests on the securest of all foundations.  It gathers strength from its own progress.

In promoting this progress the chief part which the National Government plays lies in the field of economy.  Whatever doubts may have been entertained as to the necessity of this policy and the beneficial results which would accrue from it to all the people of the Nation, its wisdom must now be considered thoroughly demonstrated.  It may not have appeared to be a novel or perhaps brilliant conception, but it has turned out to be preeminently sound.  It has not failed to work.  It has surely brought results.  It does not have to be excused as a temporary expedient adopted as the lesser evil to remedy some abuse, it is not a palliative seeking to treat symptoms, but a major operation for the, eradication at the source of a large number of social diseases.