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Appendix A. Report of the Board of Commissioners of the United States

Soldiers' Home and report of inspection of the home_-_

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III

ANNUAL REPORT OF THE SECRETARY OF WAR

The PRESIDENT:

The fiscal year ending June 30, 1935, was in many respects one of the most important in the peace-time history of the War Department. Primarily, this Department, together with the Navy, is responsible for the national defense, although it engages in other activities of great importance. During the past year there has been a growing consciousness on the part of the American people of the need for a more adequate and a more modern defensive establishment. This is due not to any fear of an impending war, for our relations with foreign countries have continued friendly, but rather to a recognition that, in the absence of any effective assurance of permanent peace, a great country needs an efficient military force to provide against unforeseen eventualities.

This attitude of the public was reflected in the careful and intelligent consideration given by the Congress to all measures bearing on the common defense. During the past 12 months definite progress has been made toward a greatly improved Army. The Congress has given the necessary authorization for materially strengthening our forces and providing them with modern equipment. Within the next few months the improved military efficiency will be clearly apparent.

It cannot be too often repeated that our national policy contemplates no aggressive action; it is entirely defensive. Our Military Establishment, therefore, should be one designed to defend our homeland and overseas possessions. Such a pacific policy does not call for a large standing army, but it does contemplate a highly efficient nucleus, capable of rapid expansion in time of emergency.

The Army of the United States, composed of the Regular Army, the National Guard, and the Organized Reserves, as specified in the National Defense Act of 1920, almost ideally meets the requirements of our democratic country. However, since 1920 considerations of economy have operated against establishing and maintaining the force authorized by that great and wise act, hence for a decade and a half we have had an army far below the minimum strength which a country of the population, territorial expanse, and wealth of the United States should maintain in order reasonably to insure its security.

It is a pity that we should have become so oblivious to the bitter lessons of the World War as to allow our defense to dwindle until, if another war should be forced upon us, we should, as usual, be unprepared for effective action. In that event we should find that our so-called "economies " have in reality been a hideously extravagant waste of money and lives. With an army that is, and always has been, scrupulously loyal and subservient to the duly constituted civil authorities, the danger of so-called "militarism" would appear to be remote indeed.

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OUTSTANDING ACCOMPLISHMENTS

During the past 2 years my own attention and that of the military experts of the War Department has been devoted largely to developing certain important plans for so organizing and equipping our meager defense forces as to attain a high degree of military efficiency, that might be carried over into a great citizen army to be raised in case of war. Much could be done and has been done by administrative action, but for the fullest development of our immediate plans legislative authorization and increased appropriations were needed. The Congress, after a careful consideration of these pressing needs, gave the necessary sanctions and provided the requisite funds. I therefore feel that the past year has been one of substantial achievement.

Among the more important administrative accomplishments of the year may be listed the perfection of our four-Army organization, and the establishment of the General Headquarters Air Force. The outstanding Congressional actions were the authorization for the increase in the enlisted strength of the Army, the increased number of cadets at the United States Military Academy, and the promotion law-the latter coming shortly after the close of the fiscal year. Increased appropriations by Congress and allotments of funds by the Public Works Administration enabled the War Department to procure modern equipment for part of the Army. Much more is needed, but encouraging progress has already been made. Mobility is one of the most important factors in warfare, and the motorization and mechanization of our armed forces is of primary importance.

THE CHIEF OF STAFF

The great improvement that has recently been made in our Army is due in very large measure to the initiative, genius, energy, resourcefulness, and brilliant leadership of General Douglas MacArthur, who is completing a tour of duty as Chief of Staff. Long before he came to the War Department as the principal military adviser to the Secretary, General MacArthur had won exceptional honor and distinction by his courage on the battlefield, his devotion to duty and his attainments as a military leader. To the many and difficult problems encountered in the War Department, General MacArthur applied the same vision, intelligence, sound judgment and fairness that had won him renown throughout his service, and he has exhibited administrative ability of the highest order. On my recommendation you extended his tour of duty as Chief of Staff nearly a year in order that he might be available to advise with the Congress on legislation of vital interest to the national defense. The President, the Secretary of War and the Congress have been extremely fortunate to have had his counsel and assistance at a time when our Army was being reorganized and modernized.

NONMILITARY ACTIVITIES

While the military activities of the War Department during the past year have been of great ultimate importance to the country, its work as a public works and conservation agency is perhaps more immediately apparent and has been of unusual magnitude.

With a view to assisting in relief of unemployment the War Départment has rapidly advanced its carefully planned comprehensive program of river and harbor improvement and has extended its flood-control operations. This has provided work for many thousands who would otherwise have been idle, and has increased the country's tangible assets in navigable waterways, power development, domestic water supply, and recreational facilities, and at the same time has lessened to an appreciable extent the menace of floods and the losses due to soil erosion. Through the construction of these public works the country's natural resources have been conserved and put to their highest beneficial use in the interest of the people. These activities are in charge of the Corps of Engineers of the United States Army, probably the finest engineering organization in the world, who thereby receive invaluable training for the efficient performance of their military mission in time of war. In other words, the civil activities of the Army engineers are not only important on account of the value of the projects they construct but also from the standpoint of national defense and preparedness.

As in the previous year the War Department has aided in various other recovery measures initiated by the President. The Army continued its work of organizing, administering, and supplying work companies of the Civilian Conservation Corps, and at the close of the fiscal year was completing the arrangements necessary for doubling the enrollment of this corps of civilian workers, which has met with such universal acclaim.

Much of the work incident to the establishment of the new Commonwealth government of the Philippine Islands was done under the general supervision of the Bureau of Insular Affairs of the War Department. Within the next few weeks I expect to leave for the Philippines to participate in the inauguration of the administration of the new Commonwealth government.

The War Department, in addition to its numerous other nonmilitary tasks, operates the Panama Canal, administers the government of the Canal Zone, and directs the operation of the Federal Barge Line on the Mississippi, Missouri, and Warrior Rivers. Since it controls this publicly owned transportation system and also the publicly owned Panama Railroad and Panama Steamship Line it is engaged in the common-carrier business to an extent which should make possible some sort of a comparison between public and private ownership of such facilities.

NEW WAR DEPARTMENT BUILDING

Insofar as possible the work of the War Department is decentralized to regional staffs. The United States is divided into nine corps areas. Each corps area is under a corps area commander, and is an autonomous administrative unit, subject only to such centralized control as is necessary for proper coordination and for economies in purchasing. However, with such a large organization and such diversified activities the maintenance of considerable personnel and offices at the seat of government is unavoidable. At present, the War Department occupies in whole or in part a large number of buildings in various parts of the District of Columbia, many of which are rented. During the past year it has been called upon to surrender

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