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America  at  the  Crossroads 


Address  of 

Hon.  Arthur  H.  Vandenberg 

of  Michigan 
at  St.  Paul,  Minn.,  on  February  10,  1940 


Printed  in  the  Congressional  Record 
of  February  13,  1940 


(Not  printed  at  Government  expense) 


0h 


210722—17953 


United  States 

Government  Printing  Office 

Washington  :  1940 


Digitized  by  the  Internet  Archive 

in  2012  with  funding  from 

The  Institute  of  Museum  and  Library  Services  through  an  Indiana  State  Library  LSTA  Grant 


http://archive.org/details/americaatcrossroOOvand 


ADDRESS 

BY 

HON.  ARTHUR  H.  VANDENBERG 


Mr.  McNARY.  Mr.  President,  I  ask  unanimous  consent  to 
have  printed  in  the  Congressional  Record  an  impressive  ad- 
dress delivered  by  the  senior  Senator  from  Michigan  [Mr. 
Vandenberg]  at  St.  Paul,  Minn.,  on  February  10,  1940,  before  a 
a  Republican  rally  celebrating  the  anniversary  of  Lincoln's 
birth. 

There  being  no  objection,  the  address  was  ordered  to  be 
printed  in  the  Record,  as  follows: 

I  am  happy  to  be  in  Minnesota  to  present  my  warmest  com- 
pliments to  your  brilliant  young  Governor  Stassen,  who  spec- 
tacularly captured  his  home  State  1  year  ago  and  who  subse- 
quently captured  Washington  with  his  irresistible  Gridiron 
Club  address  last  December.  He  seems  to  have  a  capturing 
capacity.  It  is  a  good  thing  for  divers  and  sundry  Repub- 
lican Presidential  candidates  that  there  is  a  constitutional  age 
limit  at  35. 

I  am  glad  to  be  here  on  this  particular  occasion — to  join 
with  you  in  celebrating  this  annual  Lincoln  anniversary.  So 
long  as  memory  survives  this  man  of  God,  this  son  of  destiny, 
will  be  enshrined  in  the  American  heart — not  only  as  the 
savior  of  the  Union,  not  only  as  the  emancipator  of  a  race,  not 
only  as  the  highest  embodiment  of  self-made  genius,  but 
always  and  forever  as  the  supreme  personification  of  the 
spirit  of  democracy  in  its  finest  faith  and  truest  form. 

One  cannot  speak  of  Lincoln  without  thinking  of  Gettys- 
burg and  the  speech  that  still  stands  as  the  greatest  utterance 
in  the  English  language.  But  one  cannot  speak  of  Lincoln  and 
Gettysburg  without  thinking  of  that  regiment  of  patriotic 
youth — the  First  Minnesota — the  first  to  answer  Lincoln's  call 
for  volunteers  in  1861 — the  first  in  the  annals  of  modern  war- 
fare in  the  percentage  of  its  casualty  loss — 600  youthful  mar- 
tyrs ordered  into  the  valley  of  the  shadow  to  stop  15,000  troops 
in  Pickett's  charge;  600  Minnesota  high-school  lads  who  laid 
their  lives  upon  the  altars  of  their  patriotism  and  made  it 
possible  for  Union  reserves  to  reach  this  vital  spot  and  stem 
the  tide;  600,  of  whom  but  57  lived  to  see  their  country's  flag 
again.  It  was  the  turning  point  of  Civil  War.  On  Lincoln's 
210722—17953  (3) 


night — and  it  would  be  with  his  benediction — I  bring  to  you 
the  Nation's  respect  and  love  for  the  rich  memory  of  the  loyal 
sons  of  Minnesota. 

Lincoln  was  the  first  Republican  President  of  the  United 
States.  But  his  character  and  his  tradition  long  since  burst 
these  bounds.  He  belongs  to  every  American  who  loves  his 
native  land  and  kneels  to  the  Constitution  of  this  imperishably 
reunited  country. 

Yet  the  fact  remains  that  he  was  the  first  Republican  Presi- 
dent of  the  United  States.  Four  years  later,  still  running  as  a 
Republican,  he  was  the  first  coalition  President,  uniting  be- 
hind him  all  like  thinkers,  regardless  of  party  affiliations,  who 
put  the  welfare  of  their  Nation  ahead  of  every  other  hope. 

And  there,  my  fellow  citizens,  is  the  pattern  for  us  in  1940. 
It  is  our  Lincoln  heritage.  It  is  our  Lincoln  admonition. 
Once  more  America  is  at  the  crossroads.  Once  more  a  critical 
hour  of  tremendous  decision  impends.  It  is  the  responsibility 
of  Lincoln's  party  to  save  the  American  system  of  free  enter- 
prise and  free  men  under  the  renewed  spirit  of  constitutional 
democracy  and  to  recapture  prosperity  for  our  whole  people 
under  a  Government  restored  to  sanity  and  solvency.  In  my 
view  it  must  strive  to  create  common  ground  upon  which  all 
like  thinkers  may  unite  to  produce  an  administration  for  all 
Americans  in  which  a  prepledged,  one-term  President  is 
manifestly  free  of  all  incentive  but  the  one  and  single  job 
of  saving  America. 

The  founding  fathers  constitutionally  decreed  that  the 
Federal  Government  should  have  strictly  limited  powers  so 
that  hard-won  personal  liberty  might  endure.  They  knew 
the  dangers  of  concentrated  autocracy.  That  is  what  they 
fought  against.  They  knew  the  vital  importance  of  State 
sovereignty  and  home  rule  so  that  control  of  government 
might  remain  close  to  the  governed.  They  wanted  no  over- 
lords. 

The  New  Deal,  on  the  other  hand,  decrees  that  the  Federal 
Government  shall  have  unlimited  powers;  that  it  shall  reach 
for  every  possible  control  and  dictation  over  the  citizen's  life 
and  livelihood;  and  that  when  this  unholy  authority  is  dra- 
gooned into  Washington  it  shall  be  centered  in  an  all- 
powerful  Chief  Executive  who  can  do  no  wrong. 

There  lies  the  fundamental  issue;  and  from  it,  in  one  form 
or  another,  flow  most  of  our  accumulated  problems.  When 
Roosevelt  and  the  New  Deal  collide  with  Jefferson  and  the 
Constitution  we  stand  with  Jefferson,  and  so  will  a  majority 
of  the  American  people  next  November. 

We  are  on  the  side  of  decentralized  government,  except 
where  there  is  clearly  no  escape  from  centralized  controls. 
We  think  this  country  is  too  big  and  too  complex  to  be  run 
under  standardized  discipline  and  compulsion  from  any  one 

210722—17953 


central  point.  We  are  on  the  side  of  "checks  and  balances," 
the  greatest  American  contribution  to  the  theory  of  demo- 
cratic government,  so  that  government  shall  be  required  to 
keep  itself  within  freedom's  bounds. 

The  New  Deal  is  on  the  side  of  consolidated  Federal  au- 
thority, and  then  when  it  takes  this  pilfered  power  to  Wash- 
ington it  is  on  the  side  of  further  dictatorial  consolidation 
in  the  Chief  Executive.  It  is  on  the  side  of  subservient  legis- 
latures which  shall  be  "purged"  of  any  souls  who  resist  the 
imperial  will.  It  is  on  the  side  of  subservient  courts,  which 
shall  be  "packed"  if  they  resist  the  imperial  goose  step.  It 
is  on  the  side  of  government  by  executive  decree.  Its  more 
fervid  zealots  are  entirely  logical  when  they  speak  up  for  a 
third  Presidential  term.  It  fits  their  dynastic  picture  per- 
fectly. So  would  a  fourth  or  fifth.  Elections  are  but  an 
annoying  and  needless  interlude. 

Next  November  the  American  people  will  umpire  this  dis- 
pute— this  fundamental  difference  between  two  philosophies 
of  government  and  life.  There  is  no  doubt  in  my  mind  what 
they  will  say.  They  are  tired  of  life  on  a  flying  trapeze. 
They  are  tired  of  experiments  that  never  end  and  patent 
medicines  that  never  cure.  They  are  tired  of  bureaucrats, 
"boondogglers,"  "barnacles,"  "brain  trusts,"  ballyhoo,  and 
bankruptcy.  An  eloquent  and  decisive  majority — composed  of 
Republicans  and  brave  JefTersonian  Democrats  alike — will 
repudiate  the  repudiators  of  the  American  system.  They  will 
restore  the  spirit  of  the  Constitution,  the  spirit  of  free  enter- 
prise, the  spirit  of  free  men ;  and  in  this  congenial  atmosphere 
of  new  independence  and  new  confidence  they  will  launch 
America  upon  an  era  of  unprecedented  prosperity  and  joy. 

Is  there  a  realistic  chance  for  this  happy  transition?  Let 
us  see. 

We  have  a  frustrated  economic  impulse  held  back  by  a 
decade  of  depression  and  by  the  deadening  hand  of  arbitrary 
New  Deal  interference  and  restraint.  It  strains  at  its  needless 
leash  and  will  leap  to  action  at  the  first  dependable  sign  of 
friendly  interest  and  encouragement. 

Since  1932  we  have  all  but  abandoned  new  investments, 
which  spell  new  enterprise;  and  a  vast  accumulation  of  sterile 
bank  accounts  itch  for  profitable  assignments  which  would 
spell  new  jobs,  new  wealth,  new  prosperity,  and  new  oppor- 
tunities for  youth  and  age  alike. 

We  have  suffered  10  years  of  veritable  stagnation  in  plant 
expansion  and  plant  replacement  until  obsolescence  is  a  well- 
nigh  universal  blight.  A  call  for  not  less  than  twenty  billions 
of  capital  goods  awaits  release  to  even  bring  us  back  to  par. 

Our  vital  consumer  buying  power  is  cruelly  damaged  by  the 
poverty  of  12,000,000  citizens  who  are  still  unemployed  and 
who  deserve  real  jobs  at  living  wages;  and  by  the  shattered 

210722—17953 


6 

buying  power  of  agriculture,  which  flounders  in  the  morass  of 
subsidized  paternalism  and  deserves  release  to  a  living  income. 
It  is  damaged,  on  the  other  hand,  by  the  nonproductive  diver- 
sion of  national  income  to  the  heavy  taxes  that  pay  these  bills 
and  all  the  others  incurred  by  a  vampire  bureaucracy  which 
is  the  biggest  and  the  costliest  in  history. 

These  corrections  alone  would  turn  the  trick.  We  still  have 
untouched  frontiers. 

Are  these  and  kindred  obstacles,  which  stand  in  the  way  of 
sound  recovery,  American  style,  insurmountable? 

With  all  the  emphasis  and  conviction  at  my  command,  I 
answer  "No."  And  I  also  answer  that  a  majority  of  the 
American  electorate,  fed  up  with  8  years  of  synthetic  socialism, 
will  commission  the  party  of  Lincoln  to  this  healing  task. 

In  a  word — and,  mind  you,  it  is  the  word  of  the  admin- 
istration's own  National  Economic  Council — "The  American 
machine  is  stalled  on  dead  center." 

No  one  ought  to  know  the  reason  any  better  than  the  New 
Deal  President  of  the  United  States  himself.  From  March  to 
July  of  1933  he  saw  the  industrial  production  index  of  his 
country  move  from  59  to  100 — the  greatest  volume  of  re- 
covery ever  recorded  in  a  like  space  of  time  in  human  history. 
Why?  Because  for  100  days  he  was  living  up  to  his  campaign 
promises  to  put  the  Federal  Government  on  firm  foundation ; 
to  protect  the  public  credit;  to  balance  the  Budget;  to  en- 
courage business.  He  was  still  remembering  his  own  words — 
words  which  subsequently  became  his  own  epitaph — "Most 
liberal  governments  are  wrecked  on  the  rocks  of  loose  fiscal 
policy."  At  the  end  of  100  days,  he  completely  reversed  him- 
self. He  went  off  on  a  pell-mell  spending  spreed  and  in  pursuit 
of  economic  dictatorship.  The  result  was  a  bankrupt  Utopia 
which  never  arrived.  He  built  confidence  and  then  he 
destroyed  it. 

But  that  is  not  all.  The  President  has  another  reason  for 
knowing  what  it  is  all  about.  From  May  to  December  1939 
the  industrial  production  index  rose  from  92  to  128.  It  prob- 
ably will  keep  on  rising.  Why?  Because  of  a  war  abroad? 
No;  except  in  incidental  degree.  Chiefly  because  the  war  has 
so  intrigued  the  Presidential  imagination  that  he  has  tempo- 
rarily quit  his  domestic  vivisection — and  he  hopes  that  the 
country  will  forget  them,  too.  Chiefly  because  he  has  once 
more  turned  economist.  His  eighth  annual  promise  of 
"sound  fiscal  policy"  bears  more  evidences  of  reality  than  any 
of  its  six  sterile  predecessors.  Ordinarily  election  years  scare 
business.  But  1940  is  a  phenomenon.  This  election  year 
scares  the  President.    And  the  country  benefits  as  a  result. 

I  fervently  hope  and  pray  that  the  present  timid  recovery 
trends — born  of  the  first  hope  in  7  years  that  the  Corcorans 
and  the  Cohens  and  all  the  other  Jupiter-minded  bureaucrats 

210722—17953 


who  think  the  American  people  ought  to  be  herded  into 
kindergartens — will  preserve.  But  that  is  beside  the  point. 
The  point  is  that  the  experience  of  the  New  Deal  itself  shows 
the  basic  answer  to  our  national  problem.  When  it  "lays 
off,"  we  swim.    When  it  "lays  on,"  we  sink. 

The  trouble  is  that  "purges"  and  "appeasements"  rotate  in 
such  breathless  fashion  that  no  sustained  confidence  is  pos- 
sible. The  famous  "off  again,  on  again,  gone  again  Fin- 
negan"  was  positively  static  compared  with  Uncle  Sam  on  his 
New  Deal  merry-go-round. 

The  same  President  who  deliberately  divided  the  country 
into  bitter  factions,  calling  some  "economic  royalists"  and 
"Tories"  if  they  happened  to  be  able  to  continue  to  meet 
their  own  pay  rolls,  and  inviting  class  to  war  on  class,  now 
blandly  says  that  "bitterness  and  vituperation"  are  "hurtful 
in  the  domestic  scene."  Right;  but  how  long  will  the  con- 
version last? 

The  same  President  who  machine-gunned  our  constitu- 
tional "checks  and  balances,"  who  ruthlessly  sought  to  bind 
an  independent  Supreme  Court  on  his  imperial  chariot  wheel, 
and  who  has  gathered  unto  himself  more  executive  authority 
than  exists  outside  of  completely  totalitarian  states;  this  same 
President  now  decries  the  destruction  of  "all  the  *  *  * 
political  standards  which  mankind,  after  centuries  of  struggle, 
has  come  to  cherish  most."  Nice;  but  how  long  will  the  con- 
version last?  By  the  way,  it  was  followed  significantly  within 
2  weeks  by  a  typical  proposal  to  let  the  Chief  Executive  na- 
tionalize our  industries  whenever  he  might  proclaim  a  peace- 
time emergency.  And  yet  they  wonder  why  we  can't  sleep 
nights. 

The  same  President  who  promised  to  reduce  Federal  ex- 
penditures 25  percent — and,  instead,  increased  them  300  per- 
cent— now  says  he  "marvels  at  the  glib  generalities"  of  our 
would-be  Budget  balancers.  Well,  that  can  mean  but  one 
thing:  We  must  have  elected  a  "glib  generality"  President  of 
the  United  States  in  1932. 

The  same  President  who  angrily  told  all  dissident  Demo- 
crats in  his  speech  at  the  Jackson  Day  dinner  in  1939  to  go 
join  the  Republican  "tweedledees"  now  gently  beckons  them 
all  back  again  in  his  coy  Jackson  Day  speech  for  1940.  He 
wants  a  "united  party"  this  election  year — but  for  what  pur- 
pose is  still  a  gleeful  mystery  in  his  own  undisclosed  ambitions. 

All  these  contradictions — and  many  more — are  utterly 
baffling  and  wholly  destructive  of  the  popular  confidence 
which  must  precede  general  recovery.  Partisan  critics  may 
sneer  at  this  basic  plea  for  confidence  all  they  please.  But  the 
cold,  hard  fact  remains  that  until  the  country  knows  that  it 
is  headed  in  one  direction  and  the  right  direction  for  keeps, 

210722—17953 


its  economic  recovery  will  be  as  spasmodic  and  as  discouraging 
as  the  course  of  its  haphazard,  joy-riding  Government. 

Well,  you  ask  me,  what's  the  answer?  Is  it  to  scrap  the 
New  Deal,  lock,  stock,  and  barrel? 

Let's  be  frank  about  that.  Despite  all  that  I  have  said  and 
shall  still  say,  the  answer  to  that  all-embracing  question  is 
"No";  and  you  couldn't,  even  if  you  would,  because  there  is  no 
way  to  retrieve  the  eggs  after  you  have  made  an  omelette — 
and  heaven  knows  we  confront  an  omelette,  to  put  it  mildly. 
Furthermore,  whether  you  like  it  or  not,  some  of  these  social- 
minded  objectives  are  here  to  stay.  New  times  produce  new 
problems,  and  new  problems  often  present  new  needs.  No; 
the  answer  is  that  we  must  wisely  balance  yesterday  against 
tomorrow — experience  against  necessity.  We  do  not  weaken 
our  indictment  against  the  New  Deal  by  finding  spots  of  good 
in  it.  On  the  contrary,  we  strengthen  our  indictment  by  dis- 
playing a  sense  of  discrimination  and  good  faith.  That  is 
what  the  people  are  doing  and  it  is  what  they  expect  of  us. 
The  answer  is  that  we  must  scrap  the  bad;  improve  the  good; 
live  by  the  spirit  of  the  Constitution;  quit  reckless  innova- 
tion; make  government  solvent;  give  legitimate  American  free 
enterprise  a  sustained  chance;  restore  a  maximum  of  home 
rule  in  States  and  local  communities;  say  what  we  mean; 
mean  what  we  say;  and  go  forward  in  one  consistent  and 
dependable  direction  all  the  time. 

The  President  once  correctly  said  that  if  we  could  raise  the 
national  income  from  sixty  billions  a  year  to  eighty  billions  a 
year  most  of  our  problems  would  automatically  disappear. 
But  his  trouble  is  that  the  New  Deal  tries  to  make  an  $80,000,- 
000,000  country  out  of  a  $60,000,000,000  country  by  spending 
the  difference.  It  has  put  appropriations  higher  and  peace- 
time taxes  higher  and  national  debts  higher  than  any  admin- 
istration in  American  history.  Its  own  brilliant,  sound- 
headed  ex-Under  Secretary  of  the  Treasury,  John  Hanes 
(who,  like  other  brilliant,  sound-headed  Treasury  assistants, 
is  no  longer  connected  with  the  Treasury),  put  it  this  way: 
"We  have  developed  a  $10,000,000,000  appetite  with  a  $5,000,- 
000,000  pocketbook."  These  gentlemen  who  rode  into  power 
in  1932  on  a  promise  of  retrenchment  have  stopped  at  no 
bonanza  in  attempting  to  fertilize  prosperity  with  other 
people's  money — and  they  have  completely  failed  to  answer 
anything.  At  their  last  Jackson  Day  dinner,  after  celebrat- 
ing their  affinity  for  common  folk  with  terrapin  and  cham- 
pagne at  $100  a  plate,  they  toasted  debt-paying  "Old  Hickory" 
in  $42,000,000,000  worth  of  red  ink.  What  a  cruel  travesty. 
And  what  a  grim  imposition  upon  the  hopes  and  needs  of 
those  who  are  still  victimized  by  depression,  on  the  one  hand, 
and  by  the  New  Deal  on  the  other.  You  cannot  make  a  silk 
purse  out  of  a  sow's  ear,  and  you  cannot  build  a  solvent  pros- 

210722—17953 


9 

perity  around,  an  insolvent  public  treasury.  Balanced  books, 
unfortunately,  are  more  important  than  fireside  chats. 

We  have  tried  spending  and  borrowing  and  pump  priming. 
We  have  tried  clamping  down  on  private  business  with  puni- 
tive taxes  and  with  "planned  economy" — usually  planned  by 
despotic  bureaucrats  who  never  met  a  pay  roll  in  their  lives. 
It  hasn't  worked.  It  never  will.  The  way  to  make  an  $80,- 
000,000,000  country— yes,  a  $100,000,000,000  country— is  to  let 
American  business  earn  the  difference  and  put  it  into  new 
wealth.    Wealth  has  to  be  created  before  it  can  be  shared. 

What  to  do?  Do  everything  to  legitimately  encourage  free 
enterprise  and  the  honest  profit  motive  in  private  business. 
Undo  everything  which  needlessly  discourages  business  and 
aggravates  the  uncertainties  and  the  timidities  which  hamper 
success  and  prosperity.  Do  everything  that  puts  Government 
itself  on  dependable  foundations.  Undo  everything  that 
makes  Government  wobble  and  needlessly  puts  it  in  the  way 
of  recovery  and  reemployment. 

Here  are  a  few  specifications.  Stop  the  hymns  of  hate 
which  dynamite  us  into  devastating  factions.  Quit  Gov- 
ernment competition  with  private  business  and  reduce  regula- 
tion to  whatever  real  necessity  requires  in  the  obvious  public 
interest.  Demobilize  the  bureaucrats;  scrape  off  the  pay-roll 
barnacles.  Repeal  the  floating  Presidential  money  powers 
so  that  our  currency  is  tied  to  something  more  substantial 
than  the  Presidential  whim.  Stop  buying  all  the  gold  and 
silver  in  the  world  at  swollen  prices,  when  we  already  have 
twice  as  much  as  we  can  use.  Yes;  stop  buying  gold  from 
Russia  at  $35  an  ounce  which  Russia  produces  for  $11  an 
ounce — and  puts  the  profit  into  execrable  war  upon  Scandi- 
navia. Put  our  tariffs  on  a  dependable  cost-of-production 
basis,  so  industry  and  labor  and  agriculture  may  know  what 
to  expect.  Remove  all  "tax  deterrents,"  as  identified  by  the 
present  Treasury  itself,  and  substitute  "tax  incentives"  to  the 
profits  system.  Amend  the  Securities  and  Exchange  Act  to 
remove  needless  obstacles  to  new  financing  while  retaining 
all  protections  against  piracy.  Amend  the  Wagner  Act  to 
remove  needless  and  costly  and  discouraging  frictions  in 
labor  relationships,  and  separate  the  functions  of  the  Na- 
tional Labor  Relations  Board  so  that  judge  and  prosecutor 
are  not  in  one  tyrant,  yet  zealously  protect  every  essential 
element  of  free  collective  bargaining.  Quit  all  new  social 
schemes  and  all  new  subsidies,  no  matter  how  worthy  or 
persuasive,  until  we  have  found  a  way  to  pay  for  those  already 
in  existence.  Eliminate  costly  overlapping  duplications  in 
Federal,  State,  and  local  service,  and  give  home  rule  the 
preference  wherever  possible.  Another  brilliant,  sound- 
headed  ex-Under  Secretary  of  the  Treasury,  T.  Jefferson 
Coolidge,  who,  like  a  long  line  of  other  brilliant,  sound-headed 

210722—17953 


10 

Treasury  assistants,  is  no  longer  connected  with  the  Treasury, 
put  this  latter  thing  this  way:  "We  see  today  consolidated 
Federal  powers  destroying  the  foundation,  while,  under  the 
spell  of  unsound  reasoning,  the  people  are  surrendering  their 
rights  and  liberties;  only  by  a  return  to  the  principles  of 
State  sovereignty  over  its  citizens  can  our  democracy  endure." 

But  to  continue  the  specifications.  Pay  as  much  attention 
to  the  man  from  whom  we  take  a  dollar  as  to  the  man  to 
whom  we  give  it.  Stop  the  Houdini  business  of  deliberate 
deficit  spending  and  admit  once  more  that  thrift  is  more 
prudent  than  debt.  Maintain  reasonable  relief  for  all  de- 
serving citizens  who  are  still  victimized  by  this  needlessly 
prolonged  depression,  but  unify  it  under  State  responsibility, 
with  necessary  lump-sum  appropriations  from  the  Federal 
Treasury,  thus  reducing  costly  overhead  and  waste  and  in- 
defensible experiments  and  the  political  exploitation  which 
plays  politics  with  human  misery.  Balance  the  Budget  as 
rapidly  as  sound  business  judgment  will  permit.  Restore 
the  spirit  of  the  Constitution  to  complete  authority  so  we 
may  be  sure  this  is  going  to  continue  to  be  a  government  of 
laws  and  not  of  men.  Stay  out  of  war.  Quarantine  the 
third  termites.    And  then  watch  the  country  boom. 

With  just  one  question  I  would  deal  in  greater  detail. 
It  is  the  question  of  agriculture,  in  which  I  know  this  heart 
of  the  farm  belt  is  deeply  concerned.  But  in  reality  you 
are  no  more  concerned  than  the  rest  of  us,  because  there 
can  be  no  stabilized  prosperity  for  America  as  a  whole  until 
stabilized  prosperity  for  agriculture  gives  the  American 
farmer  his  fair  share  of  the  national  income.  The  family- 
sized  farm,  run  by  its  solvent  owner,  is  still  the  core  of 
American  institutions. 

Let  the  country  be  warned  that  it  finally  hurts  itself  if 
agriculture  is  subordinated  or  ignored,  or  if  it  is  not  given  its 
full  share  of  the  American  prosperity.  But  equally  let  agri- 
culture be  warned  that  it  finally  hurts  itself  if  it  seeks  any 
undue  special  favors  which  tend  to  defeat  general  recovery, 
because  general  prosperity  for  all  consumers  of  farm  com- 
modities is  the  surest,  natural  guaranty  of  farm  success. 

The  fact  remains  that  agriculture  requires  particular  atten- 
tion because  of  its  particular  status.  In  seeking  to  serve  it, 
it  is  all  very  well  to  look  beyond  the  seas  for  export  cus- 
tomers. We  certainly  need  all  the  export  trade,  for  both 
agriculture  and  industry,  we  can  profitably  get.  But  the 
richest  market  in  all  this  earth  is  right  here  among  our  own 
130,000,000  people.  When  their  mass  buying  power  is  re- 
stored and  expanded,  when  they  all,  including  the  farmer, 
can  buy  not  only  subsistence  but  reasonable  comfort,  the  farm 
problem  in  most  instances,  like  many  other  problems,  will 
have  solved  itself.    So,  while  the  first  agricultural  necessity 

210722—17953 


11 

is  the  restoration  of  general  economic  health  throughout  this 
stupendous  home  market,  its  ultimate  indispensable  neces- 
sity is  that  this  rich  domestic  prize  should  be  dedicated  exclu- 
sively to  the  American  farmer  and  the  products  of  his  Amer- 
ican farm.  There  should  be  no  competitive  agricultural 
imports  when  domestic  farm  prices  are  below  domestic  parity. 
Here  is  one  monopoly  that  is  indispensably  good — the  mo- 
nopoly of  the  domestic  market,  against  all  destructive  alien 
competitors,  in  behalf  of  the  whole  family  of  American 
agriculture. 

Except  as  we  start  from  this  base  there  will  never  be  a 
successfully  sustained  farm  formula.  You  can  try  all  the 
patent  schemes  you  please.  They  will  all  collapse  unless  they 
start  from  this  text:  American  markets  belong  to  American 
farmers.  Not  even  Secretary  of  State  Hull  can  produce 
compensatory  alternatives  in  alien  lands,  no  matter  how 
plausible  he  makes  his  free-trade  theme,  and  no  matter  how 
persuasively  he  pleads  his  low-tariff  cause.  I  may  add,  paren- 
thetically, that  Secretary  Hull's  reciprocal  trade  treaty  law 
represents  a  wholly  unconstitutional  delegation  of  tremendous 
legislative  power  to  the  President;  indeed,  greatly  more  power 
than  was  contained  in  the  "elastic  tariff"  which  Mr.  Hull 
himself  once  condemned,  under  different  political  auspices, 
as  "too  much  power  for  a  bad  man  to  have  or  a  good  man  to 
want." 

But  back  to  the  immediate  farm  problem.  These  farms, 
even  after  they  are  nourished  with  the  blessings  of  the  Ameri- 
can market,  will  need  practical  conservation  of  their  soil.  Soil 
is  their  capital  account.  Its  depletion  is  creeping  bank- 
ruptcy. Therefore  soil-conservation  payments  are  a  logical 
national  investment.  But  they  should  go  to  voluntary  cooper- 
ators.  I  emphasize  the  word  "voluntary."  There  should  be 
no  compulsory  regimentation  of  our  farmers  as  though  they 
were  peasants.  Farmers  today  are  often  plagued  quite  as 
much  by  swarms  of  dictatorial  bureaucrats  as  by  grass- 
hoppers or  any  other  pest.  Soil-conservation  payments 
should  go  to  voluntary  cooperators  under  general  congres- 
sional formula  to  assure  equitable  division  and  under  guid- 
ance and  administration  of  State  land-grant  colleges  or  State 
agricultural  departments,  and  not  under  the  whip  and  spur 
of  Washington.  They  should  go  to  voluntary  cooperators,  not 
merely  in  five  specially  privileged  crops  but  in  all  crops.  It 
is  prejudicial  discrimination  to  call  cotton,  wheat,  corn, 
tobacco,  and  rice  our  only  basic  crops,  when  milk,  eggs,  cattle, 
hogs,  fruit,  and  truck  produce  and  others  are  often  greater  or 
as  great.  When  any  of  them  voluntarily  join  soil-conserving 
programs  they  should  have  reasonable  Treasury  rewards. 

There  is  another  type  of  Treasury  reward  which  interests 
me  quite  as  much,  "incentive  payments"  for  growing  products 

210722—17953 


12 

of  which  the  Nation  has  not  enough,  and  there  are  many 
such.  The  incentive-payment  idea,  the  exact  opposite  of  the 
unpopular,  unhealthy  scarcity  restrictions,  may  be  applied 
to  expanding  the  production  of  crops  now  imported  and  to 
developing  the  production  of  crops  for  industrial  uses.  This 
latter  field  of  action  is  one  of  the  most  promising  and  fruit- 
ful. On  a  vastly  expanding  scale  the  farm  is  becoming  the 
source  of  industrial  raw  materials.  But  the  surface  of  these 
possibilities  is  only  scratched.  Our  genius  should  be  urged 
to  this  attack  on  every  front.  "Farm  chemurgy"  is  the  vital 
phrase.  It  is  a  slow  process,  but  it  holds  more  promise  than 
all  the  balance  of  the  alphabet  which  bureaucratic  "jitter- 
bugs" at  Washington  are  still  juggling  in  their  anxiety  to 
catch  up  with  their  own  mistakes. 

In  principle,  crop  loans  are  sound — so  long  as  they  are 
within  limits  which  make  Uncle  Sam  the  loaner  and  not  the 
owner  of  the  pledged  commodity.  But  in  the  final  analysis 
the  farmer  wants  more  markets,  more  direct  access  to  them, 
and  better  prices  rather  than  more  loans.  He  does  not  need 
more  debts.  He  needs  a  chance  to  secure  his  cost  of  produc- 
tion and  a  fair  profit  so  he  can  pay  his  debts.  In  the  long  run 
he  needs  the  same  "two  price"  system  which  has  permitted 
closely  organized  industry  to  thrive  on  an  American  price  in 
the  domestic  market  and  a  competitive  price  in  the  world 
market.  He  will  get  it  one  day  under  the  original  self-sup- 
porting theory  of  the  old  McNary-Haugen  bill,  modeled  down 
to  date.  He  will  get  it  when  he  is  protected  in  an  American 
price  for  that  portion  of  a  surplus  crop  which  is  domestically 
consumed  and  when  the  export  portion  of  the  surplus  crop  is 
taken  off  the  domestic  market  and  diverted  to  the  world  mar- 
ket at  the  best  price  that  can  be  secured  through  negotiation 
with  foreign  countries  or  otherwise. 

There  are  other  things  that  ought  to  be  said  upon  this 
subject,  but  time  forbids.  Practical  and  efficient  farm  coop- 
eratives should  be  encouraged,  and  cooperative  marketing 
agreements  should  be  sympathetically  extended.  Careful  ex- 
periments in  crop  insurance,  despite  contemporary  losses, 
should  continue. 

Speaking  generally,  no  man  who  is  honest  with  the  Ameri- 
can farmer  can  say:  "I  know  this  is  the  way."  But  no  man 
who  is  honest  with  the  facts  can  deny  that  the  haphazard 
and  often  contradictory  experiments  of  the  last  7  guinea-pig 
years  have  not  created  vastly  more  problems  than  they 
have  solved,  and — despite  some  landmarks  of  progress  that 
must  be  preserved — have  often  done  agriculture  more  harm 
than  good.  We  must  start  anew  upon  the  trail  of  this  age- 
old  problem;  and  we  must  find  the  program — what  to  do 
and,  equally  important,  what  not  to  do — which  produces  an 

210722—17953 


13 

American  farmer  who  once  again  is  both  prosperous  and 
free — an  American  farmer  who  once  again  is  his  own  happy 
and  successful  master. 

I  would  briefly  touch  one  other,  final  point.  This  dis- 
traught world  is  riddled  with  bitter,  horrifying  wars  which 
wrench  our  hearts,  ravish  our  ideals,  and  consume  us  with 
hatreds  for  sanguinary  despots  who  extinguish  the  very  lamps 
of  civilization.  Deep  and  impulsive  emotions  might  easily 
drive  us  once  more  to  these  battle  lines  3,000  miles  away. 
But  we  must  ever  take  counsel  of  reality.  Reality  says  we 
cannot  hope  to  control  the  destiny  of  power  politics  in  the 
Old  World.  We  tried  it  20  years  ago  and  failed.  Reality 
says  we  must  avoid  entangling  contracts.  One  such  is  our 
recognition  of  bloody  Moscow  which,  as  a  result,  is  able,  with 
our  official  benediction,  to  attack  us  from  within  just  as 
treacherously  as  it  attacks  others  from  without.  We  have  no 
business  in  any  kind  of  partnership  with  such  an  outlaw. 
Reality  tells  us  that  our  own  stupendous  obligation  to  democ- 
racy is  to  keep  its  torch  alight  in  this  New  World.  Reality 
warns  us  that  if  we  enter  this  appalling  conflict  we  shall 
come  from  it  in  bankruptcy  and  with  our  liberties  in  chains. 
Reality  demands  that  we  must  avoid  these  wars  by  every 
effort  consistent  with  national  security  and  honor.  We  can 
stay  out  if  we  will — and  stay  out  we  must.  When  we  are 
attacked,  we  shall  respond  with  every  man  and  every  dollar 
beneath  the  flag.  Until  we  are  attacked  we  shall  hold  our 
peace.  America  must  be  our  exclusive,  dominating  dedica- 
tion. America  must  be  our  passion.  And  none  but  devoted, 
single-purposed  Americans  must  be  put  on  guard. 

Our  battles,  my  fellow  countrymen,  are  here  at  home. 
Distant  horizons  must  not  blind  our  eyes  nor  dull  our  senses 
to  the  nearer  fact  we,  too,  are  in  crisis — though  it  be  of  dif- 
ferent sort.  Our  immediate  enemies  are  not  without;  they 
are  within.  I  would  not  temporize  one  instant  with  internal 
nazi-ism  at  the  right  or  internal  communism  at  the  left.  I 
would  clear  this  track  for  keeps.  But  neither  would  I  com- 
promise with  any  other  ideology,  however  sweetly  named, 
which,  in  the  President's  own  language  describing  the  New 
Deal,  might  "provide  shackles  for  the  liberties  of  our  people." 

We  are  entirely  surrounded  by  desperately  vital  problems. 
They  affect  not  only  the  material  well-being  of  130,000,000 
people.  They  threaten  the  very  character  of  American  life 
and  institutions.  They  often  menace  individual  freedom. 
They  often  hazard  representative  democracy.  We  cannot 
meet  them  in  a  spirit  of  numb  reaction,  as  though  the  world 
was  finished  yesterday.  But  we  dare  not  meet  them  in  a  spirit 
of  contempt  for  history,  tradition,  and  experience — as  if  there 
were  no  wisdom  prior  to  1932.    We  must  put  human  rights 

210722—17953 


14 

ahead  of  property  rights.  Yet  we  must  not  forget  that  prop- 
erty rights  are  among  the  most  precious  and  the  most  sig- 
nificant of  human  rights.  Our  call  is  to  the  high  middle 
ground  of  realistic  common  sense,  where  liberalism  and  con- 
servatism shall  strike  a  happy  balance  for  the  common  good. 

It  is  our  assignment  in  the  national  destiny  to  restore  the 
spirit  of  constitutional  liberty  to  American  institutions;  to 
restore  the  genius  of  free  enterprise  to  American  commerce; 
to  restore  real  jobs  to  American  men  and  women  and  protect 
their  maintenance;  to  restore  hope  and  confidence  to  the 
American  people  who  shall  move  forward  in  the  American 
way  of  life. 

It  is  a  desperately  vital  assignment.  It  must  be  accepted 
in  the  conciousness,  to  borrow  Emerson's  vivid  phrase,  that 
America  is  God's  last  chance  to  make  a  world. 

210722—17953 

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