A Speech

The President journeyed to Manhattan, addressed the annual luncheon of the Associated Press.

Excerpts:

Of the scandal disclosures in Washington. "The encouraging thing at present is the evidence of a well-nigh complete return to normal methods of action, and a sane public opinion."

Of public expenditures. "The country as a whole is demanding with great vigor every possible relief from the burden of every unnecessary public expenditure. Yet notwithstanding this, minority groups of one kind or another, and organizations, some-times almost nation-wide in their ramifications, are making the most determined assaults upon the public treasury. I am advised by the Director of the Bureau of the Budget that careful computation discloses that there are bills pending . . not including the bonus, which would increase the expenditures of the Federal Government for next year by about $3,600,000,000."

Of the Mellon Tax Plan. "Notwithstanding the failure of a majority of the Congress up to the present time accurately to comprehend and ex- peditiously to minister to the need of taxation reform, I believe that the requirements of economy and reduced taxes will be met in a way not inconsistent with the great resources of our country."

Of the League of Nations. "Our country refused to adhere to the Covenant of the League of Nations with a decisive rejection which I regard as final."

Of the Dawes Plan. "The finding of the experts, which is known as the Dawes report, has recently been made and published. It shows ... a broad comprehension of the requirements of the situation. It has been favorably received by the Reparations Commission. It is gratifying to understand that the Allies are looking upon it with full sympathy and Germany has expressed a willingness to cooeperate. ... A situation at once both intricate and difficult has been met in a most masterful way. Our countrymen are justified in looking at the result with great pride. Nothing of more importance to Europe has oc-cured since the armistice."

Of the proposed loan to Germany. "Part of the plan contemplated that a considerable loan should at once be made to Germany for immediate pressing needs, including the financing of a bank. I trust that private American capital will be willing to participate in advancing this loan."

Of the World Court. "A proposal was sent to the last Senate by Presi- dent Harding for our adherence to the covenant establishing this court, which I submitted to the favorable consideration of the present Senate in my annual message. Other plans for a World Court have been broached, but up to the present time this has seemed to be the most practical one."

Of a disarmament conference. ". . . when the economic stability of Europe is restored. ... It would lay the foundation for a further effort at disarmament in accordance with the theory of the Washington Conference. Although that gathering was able to limit capital battleships, it had to leave the question of submarines, aircraft, and land forces unsolved."

Of international conferences. "I do not claim to be able to announce any formula that will guarantee the peace of the world. There are certain definite things, however, that I believe can be done. . . I believe that among these are frequent international conferences suited to particular needs. ... It would appear to be impractical to attempt action under present conditions, but with a certain and definite settlement of German reparations firmly established, I should favor the calling of a similar conference to achieve such limitations of armaments and initiate plans for a codification of international law, should preliminary inquiries disclose that such a proposal would meet with a sympathetic response."

Of newspapers, schoolmasters, clergymen. "Our great hope lies in developing what is good. One newspaper is better than many criminal laws. One schoolmaster is better than a legion of bailiffs. One clergy- man is better than an army with banners. These are our guarantees of internal peace and progress."

Of America's place in the world. "It is undoubtedly too much to suppose that we hold very much of the affectionate regard of other nations. At the same time we do hold their respect."