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1937 In the course of that procedure the statement was given to the press, or at least to one or two newspapermen. That did not disconcert me at all, except in one respect. I was sorry that the statement was to get into the press before it could be presented to all the Senators. But I could not prevent that, and I suspected that that might happen. I am still sorry that the statement could not be circulated among the whole Senate, to all 96 Senators, so that everyone could have a fair opportunity to make criticism and suggestions and to assent to it. But its publication was not my fault. I am not at all inclined to blame anyone for it. That is all right. In the course of matters of that sort one may well expect the newspapers to get hold of it.

I have said this in order to disabuse the minds of Senators and the American people of all thoughts of anything like a political maneuver or anything like a secret matter, or anything like the formation of a bloc, or coalition, or anything like that damnable statement which was attached to the first publication, that it had come or might come from the Liberty League, or that someone might say that the Liberty League had something to do with it.

There was no foundation for that statement. I understand those things. You can always take a thing and send it out to the American people with a tag and a discount, but if it is a good thing you need not worry about the tag.

I just now said that I was perfectly willing to assume the entire responsibility for the statement, and I shall; and I am seizing this opportunity to read it to the Senate in order that it may be carried to the American people. I feel sure they will approve it. But whether they approve it or not, I will stand on it.

In the course of this discussion some Senator may ask me who wrote this and who wrote that. I am going to tell Senators now that I am not going to say who wrote this or who wrote that. Senators may ask, "Whom did you consult?" I am not going to say whom, for the simple reason that that would be a violation of all the proprieties of the Senate. I take it that every Senator who had anything to do with this statement will be proud of it.

Let me now read the statement to see what is in it:

A sudden and extensive recession in business, industry, employment, prices, and values demands instant attention of all in positions of responsibility. To arrest it, to reverse it, and to avert its consequences is the common task. In this as Senators we have a duty, and in partial discharge of it we have determined upon this statement.

We have now not only the problem of caring for the unemployed, pending opportunity for their employment, but also the task of preventing many now employed from losing their jobs.

We believe that a policy of cooperation by all concerned upon sound lines will suffice to set the country as a whole on its accustomed way toward higher ground. This cooperation is the objective of this address to the American people. This is no time for alarm or pessimism. We have come to the inevitable period of transition, and fortunately the underlying conditions are favorable.

We are concerned now only with our duty in view of the conditions that confront us, in order that full activity of employment and commerce may be had. To avoid controversy and make for unity, we may dispense with appraisals of policies or arguments. The past is experience and is of value only for its lessons. We propose no criticism, no politics.

A CURB URGED ON SPENDING PUBLIC FUNDS

We consider that the time has come when liberal investment of private savings in enterprise as a means of employment must be depended upon and, without delay, heartily encouraged by the public policy and all Americans. Public spending, invoked in the recent emergency, was recognized as a cushion rather than as a substitute for the investment of savings by the people. To this latter all have looked at length. We believe that an encouraging public policy will ensue quickly in expanding enterprise, in active business, in widespread employment, and in abundant demand for farm products.

Without criticism of the public spending policy attendant upon the former emergency, we recognize that a repetition of that policy would not serve again, and, moreover, is out of the question. It ought to be borne in mind that private enterprise, properly fostered, carries the indispensable element of vigor. The present unemployed and employed, and the young men and women about to enter upon careers, rightly desire and must have the opportunity which is afforded only by private enterprise. The President recently informed the Congress of the instant and obvious task of inducing the investment of private funds. We perceive, as does he, the necessity for the transition, gradual to be sure, but distinct. And we propose to do our part to accomplish this objective in full cooperation.

In order to do this we recognize that the public policy must conform to certain paramount principles and objectives, and without undertaking to specify all we submit the following as essential at this time:

1. The capital-gains tax and the undistributed-profits tax ought thoroughly to be revised at once, without reducing revenue, so as to free funds for investment and promote the normal flow of savings into profitable and productive use, not for the sake of capital but for the consequences in expanding business, larger employment, and a more active consumer demand for goods.

BUDGET MUST BE BROUGHT INTO BALANCE

2. Steady approach must be made toward a balance of the public revenue with the public expenditure, a balanced National Budget, and an end of those fears which deter investment.

The public credit must be preserved or nothing else matters. To undermine it is to defeat recovery, to destroy the people upon inflationary high living costs, and particularly to ruin those of our people who are on relief. There is nothing but a sound public credit between them and disaster, because they have no other reliance for their subsistence.

This means reduced public expenditure at every point practicable. We must have certainty of taxation and stability of the currency and of credit. Before increasing taxes or broadening the base we would exhaust the resources of an intelligent application of economy. We intend that a consistent progress toward a balanced Budget shall be made—so consistent that none may question the consummation in due season. It must be a paramount objective, since it underlies certainty, stability, and confidence.

3. We propose just relations between capital and labor, and we seek an end at once of a friction, engendered by more favorable conditions, that now serves none, but injures all. We advise that government take a hand only as a last resort; and that if it must, that it shall be impartial. We insist upon the constitutional guaranties of the rights of person and of property—the right of the worker to work, of the owner to possession, and of every man to enjoy in peace the fruits of his labor.

The maintenance of law and order is fundamental. It does labor no good to obtain new benefits if an orderly society in which to enjoy them is destroyed. Coercion and violence in labor relationships must stop, no matter by whom employed. Enlightened capital must deal with labor in the light of a new conception of legitimate collective bargaining and the right to organize. Enlightened labor must deal with capital in a due appreciation of mutual responsibilities for the success of enterprise indispensable to both.

GOVERNMENT COMPETITION IS HARMFUL

4. Relying upon the profitable investment of private savings in enterprise, we oppose every Government policy tending unnecessarily to compete with and so to discourage such investment. If the Government proposes to compete in any field, due notice ought to be given in order that private investment may avoid it. For the Government and private investment cannot occupy the same field.

We favor the principle recently suggested from the White House to the end that private funds on the basis of fair return upon prudent investment may be made available without delay.

We urge that the railroads shall enjoy an income appropriate to prudent investment value.

We favor also a constructive and encouraging attitude toward all legitimate institutions operating to assist the flow of funds into investment—with the view to a broad credit at low rates.

We favor the encouragement of housing construction, recognizing that this is also one of the larger fields for investment of private funds in durable goods—precisely the instant need.

5. We recognize that the value of investment, and the circulation of money, depends upon reasonable profit, not only to protect the investment and assure confidence but also to provide increasing employment and consumption of goods from farm and factory. We favor the competitive system as against either private or Government monopoly, as preventing unreasonable profit and demanding vigor of enterprise. Our American competitive system is superior to any form of the collectivist program. We intend to preserve and foster it as the means of employment, of livelihood, and of maintaining our standard of living.

6. The sources of credit are abundant, but credit depends upon security—the soundness and stability of values; and these are governed by the profitable operation of the concerns in which stocks are certificates of interest or in which bonds are evidences of debt if, therefore, the reservoirs of credit are to be tapped, we must assure a policy making for the sense of the safety of the collateral which is the basis of credit.

ASSURANCE IS NEEDED OF NO HIGHER TAXES

7. The spread between the prices paid farmers and the prices paid by consumers for their products is notorious. One explanation of the difference is the fact that the amount of annual taxes, Federal, State, and local, comes to at least one-fourth of the national income. It is the price of the consumer, with the burden of taxes therein, which accounts for consumer resistance, depresses demand for goods, and tends to pile up unmarketable surpluses. There ought to be reduction in the tax burden, and if this is impossible at the moment, firm assurance of no further increase ought to be given.}}