You do not wipe away the scars of centuries by saying, "Now you are free to go where you want, and do as you desire, and choose the leaders you pleas… - Lyndon B. Johnson

Today we can walk the road of peace because we have the strength we need. We have built that strength with courage. We have employed it with care. We have maintained it with conviction that the reward of our resolution will be peace and freedom. We covet no territory, we seek no dominion, we fear no nation, we despise no people. With our arms we seek to shelter the peace of mankind. In this spirit, then, I wish to consider with you the state of our defenses, the policies we pursue, and--as Commander in Chief-to offer recommendations on our course for the future.

For my part, I pledge a progressive administration which is efficient, and honest and frugal. The budget to be submitted to the Congress shortly is in full accord with this pledge. It will cut our deficit in half--from $10 billion to $4,900 million. It will be, in proportion to our national output, the smallest budget since 1951. It will call for a substantial reduction in Federal employment, a feat accomplished only once before in the last 10 years. While maintaining the full strength of our combat defenses, it will call for the lowest number of civilian personnel in the Department of Defense since 1950. It will call for total expenditures of $97,900 million--compared to $98,400 million for the current year, a reduction of more than $500 million. It will call for new obligational authority of $103,800 million--a reduction of more than $4 billion below last year's request of $107,900 million. But it is not a standstill budget, for America cannot afford to stand still. Our population is growing. Our economy is more complex. Our people's needs are expanding. But by closing down obsolete installations, by curtailing less urgent programs, by cutting back where cutting back seems to be wise, by insisting on a dollar's worth for a dollar spent, I am able to recommend in this reduced budget the most Federal support in history for education, for health, for retraining the unemployed, and for helping the economically and the physically handicapped. This budget, and this year's legislative program, are designed to help each and every American citizen fulfill his basic hopes--his hopes for a fair chance to make good; his hopes for fair play from the law; his hopes for a full-time job on full-time pay; his hopes for a decent home for his family in a decent community; his hopes for a good school for his children with good teachers; and his hopes for security when faced with sickness or unemployment or old age.

This is the last chapter in a great tradition. This is the last presidential campaign to reach its climax in this arena. But it is the continuation of another tradition, for here we end a campaign which will see the American people choose the leadership of the Democratic Party. And won't that be a wonderful day for all the country?