tained.

SELECTION OF MCADOO AS DIRECTOR

The Secretary of War and I easily agreed that, in view of the many
complex interests which must be safeguarded and harmonized, as well
as because of his exceptional experience and ability in this new
field of governmental action, the Hon. William G. McAdoo was the
right man to assume direct administrative control of this new
executive task. At our request, he consented to assume the authority
and duties of organizer and director-general of the new railway
administration. He has assumed those duties, and his work is in
active progress.

It is probably too much to expect that, even under the unified
railway administration which will now be possible, sufficient
economies can be effected in the operation of the railways to make it
possible to add to their equipment and extend their operative
facilities as much as the present extraordinary demands upon their
use will render desirable, without resorting to the national Treasury
for the funds. If it is not possible, it will, of course, be
necessary to resort to the Congress for grants of money for that
purpose. The Secretary of the Treasury will advise with your
committees with regard to this very practical aspect of the matter.
For the present, I suggest only the guarantees I have indicated and
such appropriations as are necessary at the outset of this task.

I take the liberty of expressing the hope that the Congress may grant
these promptly and ungrudgingly. We are dealing with great matters,
and will, I am sure, deal with them greatly.

XXI

THE TERMS OF PEACE

(_January 8, 1918_)

In an address to both Houses of Congress, assembled in joint session,
President Wilson enunciated the war and peace program of the United
States in fourteen definite proposals. The President spoke as
follows:

* * * * *

Gentlemen of the Congress,--Once more, as repeatedly before, the
spokesmen of the Central Empires have indicated their desires to
discuss the objects of the war and the possible basis of a general
peace. Parleys have been in progress at Brest-Litovsk between Russian
representatives and representatives of the Central Powers to which
the attention of all the belligerents has been invited for the
purpose of ascertaining whether it may be possible to extend these
parleys into a general conference with regard to terms of peace and
settlement.

The Russian representatives presented not only a p