The people have spoken; they have chosen a new President and a new Congress to work their will.  I congratulate you—­particularly the new Members—­as sincerely as I did President-elect Carter.  In a few days it will be his duty to outline for you his priorities and legislative recommendations.  Tonight I will not infringe on that responsibility, but rather wish him the very best in all that is good for our country.

During the period of my own service in this Capitol and in the White House, I can recall many orderly transitions of governmental responsibility—­of problems as well as of position, of burdens as well as of power.  The genius of the American system is that we do this so naturally and so normally.  There are no soldiers marching in the street except in the Inaugural Parade; no public demonstrations except for some of the dancers at the Inaugural Ball; the opposition party doesn’t go underground, but goes on functioning vigorously in the Congress and in the country; and our vigilant press goes right on probing and publishing our faults and our follies, confirming the wisdom of the framers of the first amendment.

Because of the transfer of authority in our form of government affects the state of the Union and of the world, I am happy to report to you that the current transition is proceeding very well.  I was determined that it should; I wanted the new President to get off on an easier start than I had.

When I became President on August 9, 1974, our Nation was deeply divided and tormented.  In rapid succession the Vice President and the President had resigned in disgrace.  We were still struggling with the after-effects of a long, unpopular, and bloody war in Southeast Asia.  The economy was unstable and racing toward the worst recession in 40 years.  People were losing jobs.  The cost of living was soaring.  The Congress and the Chief Executive were at loggerheads.  The integrity of our constitutional process and other institutions was being questioned.  For more than 15 years domestic spending had soared as Federal programs multiplied, and the expense escalated annually.  During the same period our national security needs were steadily shortchanged.  In the grave situation which prevailed in August 1974, our will to maintain our international leadership was in doubt.

I asked for your prayers and went to work.

In January 1975 I reported to the Congress that the state of the Union was not good.  I proposed urgent action to improve the economy and to achieve energy independence in 10 years.  I reassured America’s allies and sought to reduce the danger of confrontation with potential adversaries.  I pledged a new direction for America. 1975 was a year of difficult decisions, but Americans responded with realism, common sense, and self-discipline.

By January 1976 we were headed in a new direction, which I hold to be the right direction for a free society.  It was guided by the belief that successful problem-solving requires more than Federal action alone, that it involves a full partnership among all branches and all levels of government and public policies which nurture and promote the creative energies of private enterprises, institutions, and individual citizens.