155,384 whites and 82,498 negroes. The total number of registrants in Alabama on the three registration days had, were 438,657, made up of 278,379 whites and 160,278 negroes. Of the above registrants 32,495 whites and 25,873 negroes were inducted into the service. In addition to the above, there were already in the service as National Guardsmen and volunteers in the diffrent branches of military service, 15,457, who were not required to register. The total number of Alabamians inducted into the National Army were 73,825, of whom 47,952 were white and 25,873 were negroes. This does not include the large number who volunteered their services and were accepted into the Navy and the Merchant Marine, as we have no record of those.

In addition to this large number of men taken from the State for military purposes and those who had just previous to that time joined in the exodus heretofore referred to, there were great numbers of others, who aftr the declaration of war, went to work in the various plants then being constructed by the government, and in private industries operated in essential war work. The depletion of labor on the farms and those taken from other vocations, made it rather difficult for those who were left behind, to meet all of the demands of the times. It is, however, a pleasure, to communicate to you, that this was accomplished by Alabama, both in contributions of manpower, of treasure and with food, not only to feed itself, but with generous quantities to aid in sustaining the outside world.

ADMINISTRATIVE

The condition of the State financially and economically during this period, made it imperative that the work of rehabilitation should engage the attention of those upon whom had been placed responsibilities, as well as the additional duties brought about by The financial embarrassment of the State forbade the exploitation of its resources in the expansion of its institutions, or expenditures otherwise, where it could well be avoided without serious detriment to the interest of the State. The policy of the strictest economy was adopted wherever it was within the authority of the Governor. While this course of conservation is probably less desirable to one's inclination than that of promoting and incorporating his ideas into new and constructive projects, yet we must learn as officials, that conditions must be met as they have been prepared by others.

It has been well known of all Alabamians, that the State, year by year, regularly for a long period, had been spending more than its income, until the time had arrived when it had become a serious burden to finance its affairs and meet its obligations as they matured. This embarrassment in financing was accentuated by the various conditions that presented themselves during the past several years. It is no easy problem to reverse a deficit into a

surplus, especially during the period when the greater part of the time involved, general economic conditions were less favorable than they were during the years in which the high plane of expenses causing the deficit was projected, and during which time the deficit had accumulated. With a large annually increasing deficit, had been accumulating during many prosperous years, with the lowest depression throughout the State that had been experienced in almost a half of a century, and with war conditions prevailing throughout the four years, with our own nation involved to some extent, the greater part of the time, has indeed made the period just coming to a close an eventful one. It was a time, during which responsibilities carried with them much labor and when firm adherence was required in all duties.

We are daily relieving ourselves of the burdens imposed upon us by war conditions and should now begin to devote our energies just as earnestly, to the upbuilding and development of the State along every line of endeavor. The outlook for material prosperity was never brighter. This condition will likely prevail for at least sufficient time, that those who are inclined to thrift, may well prepare themselves for the inevitable shrinkage of opportunities that will come after a few years. While so engaging ourselves we should not forget the happiness that is to be obtained through the spirit of good fellowship, such as that which has prevailed during the crisis that bound us so firmly into a compact unit.

The status of the different departments of state, is presented with the hope and expectation, that it will be of aid to you in the discharge of the many duties which you have assumed on behalf of your fellow citizens.

STATE COUNCIL OF DEFENSE

Soon after the declaration of war, in order to better prepare for any eventuality that might arise and to more efficiently enable the State to discharge the obligations which were eminent, an executive proclamation was issued forming a State Council of Defense. This council was made up of an Executive Committee and of eleven other general committees, representative of, and relating to every phase of our economic and social life. The work of the council has been directed by a chairman assisted by field agents and clerical force, appointed by the chairman. County councils were formed in every county, which made the organization one of great strength, with its influence penetrating into every section of the State.

It was through the State Council of Defense that the plan of co-ordination was made effective, by which all work relating to the war and even much that was distantly related thereto, was brought into co-operation with the full spirit of the times. This organization not only engaged its time in furthering propositions

that were of advantage in strengthening the State to meet the demands of the war, but busied itself in aiding all movements that would be for the good of the people. It was a general welfare organization in all that the term implies. It was active whenever the opportunity presented itself, in aiding the execution of the selective draft laws; it has co-operated with its splendid organization in securing the gratifying success that has been accorded to the different war activity drives, and to a great degree, was accountable for the sentiment of unanimity which pervaded the State during the crisis. Its influence and active aid has been ever present, where efficient aid was needed. The councils were formed of loyal and busy men whose time was freely given to their state, in order that she might present the record on which we can now look with pride. At the formation of the State Council of Defense, it was not contemplated that its work would extend beyond the termination of the war. It was created as a war organization and used as such. Its effectiveness has created a desire on the part of some for its continuance. Since the signing of the armistice, requests have come from the National Council of Defense, that it may continue its work, until the many problems presented by the return of peace may at least be in a fair way to settlement.

This organization until very recently was aiding in the readjustment program. It takes time for this, as the work cannot be fully completed until practically all of the soldiers have been returned and mustered out of service. The assimilation in the readjustment program must take place by degrees, and should be directed by some forceful organizations, or else an unbalanced industrial condition will likely result. As heretofore stated, the organization was made up of men of large affairs who could not afford to indefinitely separate themselves from their own business, unless the welfare of their country demanded this sacrifice of time. Demobilization has progressed to such a stage that they feel their services are no longer necessary and have asked to be relieved of further duties after January 1st. With a realization that the additional duties contemplated would require thought and action entirely different from that heretofore required of the organization, the request was granted.

There being no state funds available for the support of the State Council of Defense, they were provided by private subscription. The officers and members have received no pay, but the clerical and field force had to be paid and many other expenses, such as aid in other war measures, had to be taken care of. These expenses were greatly reduced with the approach of peace. There are no outstanding obligations, so whatever may be decided upon pertaining to the request for taking up and carrying on the work which the National Council of Defense has in view, can be done without reference to the past.

To this body of men and women, who have so unselfishly and without ostentation given of their time for the benefit of the State, without other thought han to render service, if due the thanks of the people. It is to the chairman of the organization, who gave his full time and personal direction to its affairs, that credit is due for the high state of efficiency with which it has discharged its functions. The several states of the Union formed similar organizations and although many of them had large funds to expend, derived through appropriations of their respective legislatures, Alabama's State Council of Defense, in efficiency and general usefulness, was second to none.

A record of the activities of the State Council of Defense, which embraces such a large part of the war record of the State, has been issued in book form. This volume will give you an idea of the many acts fostered by the State in support of the war.

ADUTANT GENERAL'S DEPARTMENT—
MILITARY

This has been an exceedingly important and also very active department throughout almost the entire four years. At the commencement of the four year period, much had to be done towards restoring the status of the State with the militia department at Washington. Much property in the nature of equipment is turned over to the National Guard by the Federal government, for which the State, through the Adjutant General's office, is responsible. There had been much delivered to the State in years gone by, for which there had been no accounting. This had all to be straightened out, or else the State would remain in discredit with the militia department. The lax condition had continued for many years and the shortage had been permitted to grow from year to year. It had reached a condition where it was impossible to effect a complete settlement without a large payment of currency, except by compromise and concessions. This was effected through the activity of the Adjutant General, and Alabama was restored to its original good standing.

With the mobilization of the Guard for duty on the western border, the Adjutant General's department assumed a war aspect, which has never since been entirely relinquished. When the draft act became effective, this department became the center of the war activities in Alabama. The work of all the selective draft boards within the State were under the direct supervision of the Adjutant General. While the work of creating the National Army was done under a Federal act, the burden of the proper execution of the law and the responsibilities connected therewith, rested with the State. The Adjutant General gave personal direction to this immense volume of business, and the manner in which it was done brought credit to the department over which he presided, and maintained Alabama's war status in the highest repute.

With the transfer of the National Guard into the National Army, the State was left without an armed organization to assist the peace officers of the State in upholding law and order. On two different occasions, however, assistance was asked of the war department, which was promptly granted by the appointment of a detail from Camp Sheridan.

With the signing of the armistice and the breaking up of the cantonments, it was considered advisable to organize new units of the National Guard. Steps were taken about November 1st for the organization of the third regiment. The available men who would meet the physical requirements were not plentiful and the work proceeded more slowly than under normal conditions. It was only in the larger cities in which assurance could be placed to secure the men, consequently no effort was made to organize units in the smaller cities. This is rapidly undergoing a change as the soldiers are being discharged.

Under the Federal act of 1916 provision is made for a greater number of units of National Guards in the several states. The State law should be made to comply with the Federal law, if we expect in future to maintain these organizations as an auxiliary to the peace officers in times of disturbance, in the enforcement of law and order and, at the same time, receive the aid from the Federal government as provided in the act to which reference has been made. It would be advisable that this be investigated by you, that you may take such action as your judgment may dictate.

FINANCIAL

Our finances are the basis of all of our activities and if they should get out of equilibrium, then every part of the government is disturbed. There should be no more of a desire to build up an unhealthy surplus, than to prevent a deficit. Either of the two defects practiced to an excess, is liable to bring about inordinate action in the opposite direction. Conditions change sometimes after appropriations have been made that affect the financial status to a degree, but not often seriously, provided the appropriations were within a reasonable estimate of the income, at the time when the appropriations were made. There can be no justification, however, for elevating the continued fixed expenses above a fair estimate of the revenues. The excuse often presented, that conditions will change for the better and that those who come after us may remedy our excesses by curbing their desires, is simply the result of consigning one's self into the course of least resistance. We should remember that each administrator possesses, in some measure at least, the ambition to contribute his efforts to constructive measures other than the rehabilitation of the finances of the State. While this phase of public duty, when performed, is none the less creditable than that of spending