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ANNUAL REPORT OF THE CHIEF OF STAFF

The Honorable, The SECRETARY OF WAR:

DEAR MR. SECRETARY: I submit herewith the following report on the state of the Military Establishment at the close of the fiscal year 1937.

In my report of last year I outlined the fundamental changes that have occurred in our military situation since the close of the World War, and the necessity for carrying out the program of betterments that was begun in 1935.

Happily I am able to report that the funds appropriated at the last session of Congress will permit of further progress in the accomplishment of that program. That program is not extensive. It is restricted in character to the equipment needed to bring our armament abreast of current developments, and in scope to the quantities needed in initial mobilization for defense.

Certain modifications have been made in the program as a result of the data obtained from the current operations in Spain. Those, as well as the operations now in progress in China, afford practical proving-ground tests of new equipment, and factual evidence of the roles in which the two relatively new arms, viz, tanks and aviation, can be employed effectively. This evidence demonstrates again that neither of these arms can bring about a decision in land operation. They are auxiliaries, valuable auxiliaries, to the Infantry, whether the support given be of a tactical or a strategical nature. But for the decision we must still look to the man on foot. The new arms can aid him; they cannot replace him.

The paragraphs which follow describe the progress made in the past fiscal year and that anticipated in 1938. În brief it may be said that the funds appropriated for 1937 provided for some increases in rearmament and also for increases in personnel and in the scope of the activities of the civilian components.

STRENGTH OF THE REGULAR ARMY

a. Enlisted men.-The Appropriation Act for the fiscal year 1937 provided sufficient funds for raising the enlisted strength from 147,000 to 165,000 in 12 equal increments. The latter figure was the strength authorized by Congress in 1936, but budgetary action limited the figure during that fiscal year to 147,000. In the fiscal year 1938 limitations will restrict the average strength to 162,000. That figure is 118,000 short of the strength prescribed by the National Defense Act of 1920. A strength of 165,000 is considered the minimum number to provide adequate oversea garrisons, and to perform the many tasks in the continental United States that devolve upon the Regular Army as the nucleus of our Military Establishment.

Legislation enacted by the Seventy-fourth Congress authorized the President to determine the grades and ratings of enlisted men and

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do away with the former rigid system of fixed percentages. Increases in appropriations provided for slight increases in the pay of the Army for grades and ratings during the fiscal year 1938. Notwithstanding these increases the schedule of pay for these purposes is still too low. The great additions that have been made in the varieties and complexities of equipment have necessarily increased the requirement for highly skilled mechanics and technicians. Such training is given in the Army, but due to the low pay schedule a large percentage of the men so trained leave the Army to accept positions open to them in other departments of the Government or in civil life. Such men should be offered greater inducements to remain in the service.

b. Officers. The authorized pay strength of the officer corps of the Regular Army fixed in the Army Appropriation Act for the fiscal year 1938 is 12,350. The National Defense Act authorized 17,726. The number needed to complement adequately the force of 165,000 enlisted men, to provide the minimum overhead and to serve the civilian components, is 14,659.

In November 1936 the Regular Army received the first quota of 50 Reserve officers under the Thomason Act (Public, No. 408). These were selected from the graduates of the Air Corps Training Center. In July 1937 commissions were given the second quota of 50 under this act. In selecting the second quota of second lieutenants from the Reserve Corps under the Thomason Act, approximately 1,000 second lieutenants were called to active duty and distributed among the corps areas. A competitive examination was held at the end of the year to select the 50 to be commissioned in the Regular Army.

The Appropriation Act for the fiscal year 1938 carries an authorization for the training for 1 year of 650 Reserve second lieutenants, from whom 50 will be selected for commissions on July 1, 1938.

The officer personnel was also augmented by the first increment of the 185 Engineer officers provided under the act of June 26, 1936. Sixty-two were secured this year under this act. In the next fiscal year a second increment of 62 will be admitted. These additional numbers are needed to meet the increase in civil duties that has devolved upon the Corps of Engineers.

Authorization was also given for 100 additional officers to provide instructors for new units of the R. O. T. C. Fiscal limitations, however, have prevented this increase in officers.

The provisions of the 1938 Appropriation Act authorize 50 additional Medical officers and 25 additional Dental Corps officers.

c. General. For some years the strength of the Regular Army has been inadequate to meet the many requirements imposed upon it under our national-defense policy. These requirements have been increasing from year to year. Additional personnel has become necessary because of the Air Corps program, the establishment of additional R. O. T. C. units, the need of additional instructors for newly activated National Guard units, and the calls made upon the Army for civil duties.

Many and fundamental tasks devolve upon our Regular Army. Some are tasks that it must undertake in its capacity as a distinct entity, such as the provision of garrisons for our oversea possessions. But the more fundamental tasks are those that devolve upon it as the nucleus and the soul of our entire defense establishment, which is the

role it will be called upon to fill in future as in all our wars of the past. If this nucleus be not maintained, our Nation, despite its population and its resources, cannot expect to escape the fate of others which, disdaining or ignoring a knowledge of the military art, have found themselves helpless in the face of aggression.

With these thoughts in mind, I recommend that every effort be made to gain and maintain a strength for the Regular Army of 14,659 officers and 165,000 enlisted men.

THE UNITED STATES MILITARY ACADEMY

To alleviate the crowded condition and shortage in accommodations caused by the increased enrollment in the Corps of Cadets, construction was authorized in the first deficiency act of 1936. The major items, comprising an addition to the gymnasium, a barracks, an academic building, an armory, and 50 sets of officers' quarters, are now under construction and will be completed during the fiscal year 1938. The need for the purchase of additional land to insure an adequate water supply was again brought to the attention of Congress this year.

NATIONAL GUARD

The two increments, each of 5,000 officers and men, authorized by Congress for the National Guard in the fiscal years 1936 and 1937, respectively, were used to fill and make active units of the inactive list included in the National Guard development program, approved by the Secretary of War in 1923. This policy will be continued when the third increment of 5,000 officers and men authorized by Congress for the fiscal year 1938 is added. Upon its augmentation by this third increment the National Guard will have an authorized strength of 205,000 officers and enlisted men.

The training of the National Guard has improved progressively, and its readiness for combat is believed to be at the highest peak of its post-war history. During the year all National Guard divisions in the Second Army participated with credit in Army maneuvers. Division commanders and staffs of the Third Army took part in the command post exercise held by that army.

A number of units of the National Guard were employed by the States with commendable efficiency during flood disasters and other civil emergencies.

Considerable shortages exist in equipment of which the most notable is in modern antiaircraft armament. The total equipment in the 10 National Guard antiaircraft regiments is inadequate to equip one of them completely for war service. Efforts are being made to correct these deficiencies, and it is hoped that by the end of the fiscal year 1939 it will be possible to complete the minimum training equipment for all 10 National Guard regiments.

The National Guard Air Corps squadrons are being progressively equipped in accordance with the program of the Baker Board. Funds for the fiscal year 1937 permitted the National Guard to meet the requirements for that year.

ORGANIZED RESERVES

During this fiscal year active duty training has been carried on to the following extent:

Fourteen-day active duty training

Training with the Regular Army under the provision of Public No. 408,
Seventy-fourth Congress, for a period of 1 year..

Total to receive extended active duty with the Air Corps at various
times during the year..

More than 14-day training at the General and Special Service Schools.

22, 595

820

493 192

There are on duty with the Civilian Conservation Corps 6,621 Reserve officers. Training of a military nature is not given in this activity. It follows as a consequence that the experience gained is restricted to that of an administrative nature and does not meet the requirements of training for mobilization purposes.

During the fiscal year, 820 second lieutenants (Thomason trainees) completed their training of approximately 1 year with the permanent establishment as authorized by Public No. 408, Seventy-fourth Congress. Of this number, 50 were commissioned in the Regular Army. The reports coming to me indicate that the first year of this new activity was successful not only as to its immediate purposes, but also in stimulating the interest of the personnel of the Reserve Officers' Training Corps.

The strength of the Officers' Reserve Corps as of June 30, 1937, consists of 96,545 officers eligible for assignment, active duty, and reappointment, and 14,624 without such eligibility due to their failure to comply with existing requirements.

It is my opinion that 30,000 Reserve officers should be called to 14-day active duty training annually. To insure adequate leadership and efficient staff work with our Reserve units, it is desirable that 300 Reserve officers attend annually the civilian component courses at the General and Special Service Schools.

RESERVE OFFICERS' TRAINING CORPS

The number of graduates from the R. O. T. C. remains stabilized This is due to the fact that this number is largely controlled by the number of enrollments that can be permitted in advanced courses. This number has remained the same as in previous years.

Due to the new R. O. T. C. units authorized in 1936, the general increase in college enrollment, and the growing popularity of the courses offered, the R. O. T. C. experienced an increase in enrollment of about 10 percent over the previous year. This will result in a need for additional advanced-course enrollments for the school year 1938-39.

The motorization of certain Field Artillery units has progressed rapidly. This should result in economy in the maintenance of these units.

The problem of providing adequate instructor personnel for R. O. T. C. duty continues to be acute. Because of this no additional units, other than Medical units, have been authorized this year. The establishment of the new Medical units was possible because of the fact that the majority of the instructors required could be assigned to this work without detriment to the performance of other necessary duties.

CITIZENS' MILITARY TRAINING CAMPS

A total of 58,327 applications were received for training at Citizens' Military Training Camps; 35,089 were authorized to attend; 32,312 reported at the camps; and 30,329 completed the month of training. The training was conducted at 49 camps. The number of applications was 9 percent more than the number for the preceding year.

The figures cited indicate the growing interest in these camps. They show also a general satisfaction of the trainees with the conditions and treatment at the camps.

These conclusions are corroborated by reports from corps area commanders and from the articles appearing in the press throughout the country, which are highly commendatory of the conduct of the camps and of the results accomplished.

ENLISTED RESERVE

I desire to invite attention to my recommendation of last year relative to the establishment of an enlisted reserve. The principle is sound. It is one followed by the other armies of the world. Such a reserve was unnecessary during the period following the close of the World War when we had hundreds of thousands of trained soldiers in civil life. But with the passage of nearly two decades this vast reservoir of man power has become unavailable.

The enlisted reserve should be composed of young men who have passed through a period of training in the Regular Army and returned to civil life. It should be adquate in numbers to provide: (a) for the expansion to war strength of the Regular Army units involved in the initial mobilization; and (b), for the provision of enlisted cadres for those elements of the Organized Reserve that would be required in the earlier stages of an expanded mobilization.

CIVILIAN CONSERVATION CORPS

The War Department continued its administrative functions with respect to the Civilian Conservation Corps. The act approved June 28, 1937, provided for the continuation of that Corps for another 3 years, with a maximum enrollment of 300,000. The authorized enrolled strength throughout the year was 350,000. The maximum number of authorized work camps operated during the year was 2,109, and the minimum 1,930.

The cordial relations existing from the beginning between the War Department and the other Government agencies cooperating in the Civilian Conservation Corps activities have continued throughout the year.

ORGANIZATION

The progressive development of military equipment requires readaptation from time to time of our military organization. The subject is one of continuing study. A major reorganization effected by my predecessor was the establishment of the G. H. Q. Air Force. Experience shows that the setting up of this force as an integral part of the Military Establishment conforms to the principles of sound military organization. This view is confirmed by the lessons of air operations in the current warfare abroad.

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