I hope the Congress will put the money where the authorization is.

I believe this is an essential contribution to justice and to public order

in the United States. I hope these grants can be made to the States and

they can be used effectively to reduce the crime rate in this country.

But all of this is only a small part of the total effort that must be

made--I think chiefly by the local governments throughout the Nation--if we

expect to reduce the toll of crime that we all detest.

Frankly, as I leave the Office of the Presidency, one of my greatest

disappointments is our failure to secure passage of a licensing and

registration act for firearms. I think if we had passed that act, it would

have reduced the incidence of crime. I believe that the Congress should

adopt such a law, and I hope that it will at a not too distant date.

In order to meet our long-standing commitment to make government as

efficient as possible, I believe that we should reorganize our postal

system along the lines of the Kappel[1] report.

[Footnote 1: Frederick R. Kappel, Chairman of the Commission on Executive,

Legislative and Judicial Salaries.]

I hope we can all agree that public service should never impose an

unreasonable financial sacrifice on able men and women who want to serve

their country.

I believe that the recommendations of the Commission on Executive,

Legislative and Judicial Salaries are generally sound. Later this week, I

shall submit a special message which I reviewed with the leadership this

evening containing a proposal that has been reduced and has modified the

Commission's recommendation to some extent on the congressional salaries.

For Members of Congress, I will recommend the basic compensation not of the

$50,000 unanimously recommended by the Kappel Commission and the other

distinguished Members, but I shall reduce that $50,000 to $42,500. I will

suggest that Congress appropriate a very small additional allowance for

official expenses, so that Members will not be required to use their salary

increase for essential official business.

I would have submitted the Commission's recommendations, except the advice

that I received from the leadership--and you usually are consulted about

matters that affect the Congress--was that the Congress would not accept

the $50,000 recommendation, and if I expected my recommendation to be

seriously considered, I should make substantial reductions. That is the

only reason I didn't go along with the Kappel report.

In 1967 I recommended to the Congress a fair and impartial random selection

system for the draft. I submit it again tonight for your most respectful

consideration.

I know that all of us recognize that most of the things we do to meet all

of these commitments I talk about will cost money. If we maintain the

strong rate of growth that we have had in this country for the past 8

years, I think we shall generate the resources that we need to meet these

commitments.

We have already been able to increase our support for major social

programs--although we have heard a lot about not being able to do anything

on the home front because of Vietnam; but we have been able in the last

5 years to increase our commitments for such things as health and education

from $30 billion in 1964 to $68 billion in the coming fiscal year. That is

more than double. That is more than it has ever been increased in the 188

years of this Republic, notwithstanding Vietnam.

We must continue to budget our resources and budget them responsibly in a

way that will preserve our prosperity and will strengthen our dollar.

Greater revenues and the reduced Federal spending required by Congress last

year have changed the budgetary picture dramatically since last January

when we made our estimates. At that time, you will remember that we

estimated we would have a deficit of $8 billion. Well, I am glad to report

to you tonight that the fiscal year ending June 30, 1969, this June, we are

going to have not a deficit, but we are going to have a $2.4 billion

surplus.

You will receive the budget tomorrow. The budget for the next fiscal year,

that begins July 1--which you will want to examine very carefully in the

days ahead--will provide a $3.4 billion surplus.

This budget anticipates the extension of the surtax that Congress enacted

last year. I have communicated with the President-elect, Mr. Nixon, in

connection with this policy of continuing the surtax for the time being.

I want to tell you that both of us want to see it removed just as soon as

circumstances will permit, but the President-elect has told me that he has

concluded that until his administration, and this Congress, can examine the

appropriation bills, and each item in the budget, and can ascertain that

the facts justify permitting the surtax to expire or to be reduced, he, Mr.

Nixon, will support my recommendation that the surtax be continued.

Americans, I believe, are united in the hope that the Paris talks will

bring an early peace to Vietnam. And if our hopes for an early settlement

of the war are realized, then our military expenditures can be reduced and

very substantial savings can be made to be used for other desirable

purposes, as the Congress may determine.

In any event, I think it is imperative that we do all that we responsibly

can to resist inflation while maintaining our prosperity. I think all

Americans know that our prosperity is broad and it is deep, and it has

brought record profits, the highest in our history, and record wages.

Our gross national product has grown more in the last 5 years than any

other period in our Nation's history. Our wages have been the highest. Our

profits have been the best. This prosperity has enabled millions to escape

the poverty that they would have otherwise had the last few years.

I think also you will be very glad to hear that the Secretary of the

Treasury informs me tonight that in 1968 in our balance of payments we have

achieved a surplus. It appears that we have, in fact, done better this year

than we have done in any year in this regard since the year 1957.

The quest for a durable peace, I think, has absorbed every administration

since the end of World War II. It has required us to seek a limitation of

arms races not only among the superpowers, but among the smaller nations as

well. We have joined in the test ban treaty of 1963, the outer space treaty

of 1967, and the treaty against the spread of nuclear weapons in 1968.

This latter agreement--the nonproliferation treaty--is now pending in the

Senate and it has been pending there since last July. In my opinion, delay

in ratifying it is not going to be helpful to the cause of peace. America

took the lead in negotiating this treaty and America should now take steps

to have it approved at the earliest possible date.

Until a way can be found to scale down the level of arms among the

superpowers, mankind cannot view the future without fear and great

apprehension. So, I believe that we should resume the talks with the Soviet

Union about limiting offensive and defensive missile systems. I think they

would already have been resumed except for Czechoslovakia and our election

this year.

It was more than 20 years ago that we embarked on a program of trying to

aid the developing nations. We knew then that we could not live in good

conscience as a rich enclave on an earth that was seething in misery.

During these years there have been great advances made under our program,

particularly against want and hunger, although we are disappointed at the

appropriations last year. We thought they were woefully inadequate. This

year I am asking for adequate funds for economic assistance in the hope

that we can further peace throughout the world.

I think we must continue to support efforts in regional cooperation. Among

those efforts, that of Western Europe has a very special place in America's

concern.

The only course that is going to permit Europe to play the great world role

that its resources permit is to go forward to unity. I think America

remains ready to work with a united Europe, to work as a partner on the

basis of equality.

For the future, the quest for peace, I believe, requires:

--that we maintain the liberal trade policies that have helped us become

the leading nation in world trade,

--that we strengthen the international monetary system as an instrument of

world prosperity, and

--that we seek areas of agreement with the Soviet Union where the interests

of both nations and the interests of world peace are properly served.

The strained relationship between us and the world's leading Communist

power has not ended--especially in the light of the brutal invasion of

Czechoslovakia. But totalitarianism is no less odious to us because we are

able to reach some accommodation that reduces the danger of world

catastrophe.

What we do, we do in the interest of peace in the world. We earnestly hope

that time will bring a Russia that is less afraid of diversity and

individual freedom.

The quest for peace tonight continues in Vietnam, and in the Paris talks.

I regret more than any of you know that it has not been possible to restore

peace to South Vietnam.

The prospects, I think, for peace are better today than at any time since

North Vietnam began its invasion with its regular forces more than 4 years

ago.

The free nations of Asia know what they were not sure of at that time: that

America cares about their freedom, and it also cares about America's own

vital interests in Asia and throughout the Pacific.

The North Vietnamese know that they cannot achieve their aggressive

purposes by force. There may be hard fighting before a settlement is

reached; but, I can assure you, it will yield no victory to the Communist

cause.

I cannot speak to you tonight about Vietnam without paying a very personal

tribute to the men who have carried the battle out there for all of us. I

have been honored to be their Commander in Chief. The Nation owes them its

unstinting support while the battle continues--and its enduring gratitude

when their service is done.

Finally, the quest for stable peace in the Middle East goes on in many

capitals tonight. America fully supports the unanimous resolution of the

U.N. Security Council which points the way. There must be a settlement of

the armed hostility that exists in that region of the world today. It is a

threat not only to Israel and to all the Arab States, but it is a threat to

every one of us and to the entire world as well.

Now, my friends in Congress, I want to conclude with a few very personal

words to you.

I rejected and rejected and then finally accepted the congressional

leadership's invitation to come here to speak this farewell to you in

person tonight.

I did that for two reasons. One was philosophical. I wanted to give you my

judgment, as I saw it, on some of the issues before our Nation, as I view

them, before I leave.

The other was just pure sentimental. Most all of my life as a public

official has been spent here in this building. For 38 years--since I worked

on that gallery as a doorkeeper in the House of Representatives--I have

known these halls, and I have known most of the men pretty well who walked

them.

I know the questions that you face. I know the conflicts that you endure. I

know the ideals that you seek to serve.

I left here first to become Vice President, and then to become, in a moment

of tragedy, the President of the United States.

My term of office has been marked by a series of challenges, both at home

and throughout the world.

In meeting some of these challenges, the Nation has found a new confidence.

In meeting others, it knew turbulence and doubt, and fear and hate.

Throughout this time, I have been sustained by my faith in representative

democracy--a faith that I had learned here in this Capitol Building as an

employee and as a Congressman and as a Senator.

I believe deeply in the ultimate purposes of this Nation--described by the

Constitution, tempered by history, embodied in progressive laws, and given

life by men and women that have been elected to serve their fellow

citizens.

Now for 5 most demanding years in the White House, I have been strengthened

by the counsel and the cooperation of two great former Presidents, Harry S.

Truman and Dwight David Eisenhower. I have been guided by the memory of my

pleasant and close association with the beloved John F. Kennedy, and with

our greatest modern legislator, Speaker Sam Rayburn.

I have been assisted by my friend every step of the way, Vice President

Hubert Humphrey. I am so grateful that I have been supported daily by the

loyalty of Speaker McCormack and Majority Leader Albert.

I have benefited from the wisdom of Senator Mike Mansfield, and I am sure

that I have avoided many dangerous pitfalls by the good commonsense counsel

of the President Pro Tem of the Senate, Senator Richard Brevard Russell.

I have received the most generous cooperation from the leaders of the

Republican Party in the Congress of the United States, Senator Dirksen and

Congressman Gerald Ford, the Minority Leader.

No President should ask for more, although I did upon occasions. But few

Presidents have ever been blessed with so much.

President-elect Nixon, in the days ahead, is going to need your

understanding, just as I did. And he is entitled to have it. I hope every

Member will remember that the burdens he will bear as our President, will

be borne for all of us. Each of us should try not to increase these burdens

for the sake of narrow personal or partisan advantage.

Now, it is time to leave. I hope it may be said, a hundred years from now,

that by working together we helped to make our country more just, more just

for all of its people, as well as to insure and guarantee the blessings of

liberty for all of our posterity.

That is what I hope. But I believe that at least it will be said that we

tried.

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