Remarks to District Directors of the Internal Revenue Service.

WHEN WE met last year, I commended you for your achievements and urged you to strive for even better performance. I have been watching your progress, and I am pleased by your response.

Much has happened since we last met. Mortimer Caplin, who brought a new style to the art of tax collecting, has departed.

Bert Harding ran the agency for 6 months and ran it well. He is a fine example of the kind of versatile career man that should be in the Government--and I am glad he is still with us.

I am especially proud of your new Commissioner, Sheldon Cohen. No one rates higher with me than Sheldon. I expect him--and you--to make the Internal Revenue set the standards for the rest of the Government.

Sheldon knows I am holding him responsible for having an alert, vigorous group of officials in Revenue. He may hold your feet to the fire on this--and I hope he does. I have assured him and I assure you that you will continue to be protected from political influence. But I want you and your forces to deserve this protection. I want you to be sure that the men you find and raise up yourselves are superior to any that would come to you from outside sources.

When I talk about getting good people into Government, I mean all races and both sexes. Commissioner Cohen is breaking new ground by proposing the appointment of a well-qualified Negro and a distinguished woman to his advisory group. He is setting an example I expect all of you to follow.

No organization can live by bread alone. It must recognize the sum total of employee needs if, over the long run, it is to create a climate for true economy and efficiency. You cannot create this climate by having your people ill housed, ill paid, or ill led.

I have supported higher pay scales and other measures designed to improve the Federal Service. I have supported your own budget request for increased staffing because I believe this is money that will be well spent.

You have demonstrated a good spirit in efforts to economize, the recent merger of your New York and Boston regions being a case in point. Your proposal for regional filing of tax returns is another step in this direction.

You will have opposition to some of these forward steps you will want to take, but you will find most of your opposition springs from misunderstanding. If you can explain what you are doing, and why, and dispel the fears people naturally have about change then you will find things will go down a lot better.

I know Commissioner Cohen has been stressing the need for impartiality and courtesy. I cannot overstress the importance of courtesy and decent treatment of the taxpayers of this Nation. Explaining your position to the taxpayer is simply another form of this courtesy. None of us must ever forget that all of us are servants of the people. The people have a right to know what we are doing, and why. You fill a vital role in our system. You are filling it well--with honor, integrity, and devotion. I thank you--and I salute you.