Indianapolis Times, Indianapolis, Marion County, 4 January 1939 — Page 5
\gainst Rising Tide of his:
Wahoron Jan. 4 (U. P.).—The text of President , Rooseyvelt’s annual message to Congress on the state of . the Union follows:
In reporting on the state of the
Nation, I have felt it necessary on
previous occasions to advise the Congress of disturbance abroad and * of the need of putting our own ‘house in order in the face of storm signals from across the seas. As this 76th Congress opens there is need for further warning. A war which threatened to develop the world in flames has been averted: But it has become increas- . ingly clear that peace is not assured. -All about us rage undeclared wars military and economic. All about grow, more deadly armaments— od 2 and economic. All about us are threats of new aggression— military and economic.
RELIGION IN DANGER
Storms from abroad directly challenge three institutions indispensable to Americans, now as always. The first is religion. It is the source .of the other two—democracy and international good faith.
Religion, by teaching man his re‘lationship to God, gives the individual a sense of his own dignity and teaches him to respect himself by respecting his neighbors. Democracy, the practice of selfgovernment, is a covenant among free men to respect the rights and liberties of their fellows.
International good faith, a sister of democracy, springs from the will of civilized nations of men to respect the rights and liberties of other nations and men. In a modern civilization, all three —religion, democracy and international good faith—complement each other. Where freedom of religion has been attacked, the attack has come from sources opposed to democracy. Where democracy has been overthrown, the spirit of free worship has disappeared. And where re‘ligion and democracy have vanished, good faith and reason in international affairs have given way to strident ambition and brute force.
U. 8. KEEPS OLD FAITH
"An ordering of society which relegates religion, democracy and good faith among nations to the background can find no place within it for the ideals of the Prince of Peace. The United States rejects . such an ordering, and retains its ancient faith.
There comes a time in the affairs of men when they must prepare to defend not their homes alone but the tenets of faith and humanity on which their churches, their governments and their very civilization are founded. The defense of religion, of democracy and of good faith among nations is all the same fight. To save one we must now 1é ke up our minds to save all. : e know what might happen to us of the United States if the new philosophies of force were to encompass the other continents and invade our own. We, no more than other nations, can afford to be surrounded by the enemies of our faith and our humanity. Fortunate it is, therefore, that in this Western Hemisphere we have, under a common ideal of democratic . government, a fich diversity of resources and of peoples functioning together in mutual respect and peace. That hemisphere, that peace, and that ideal we propose to do our share in protecting against storms from any quarter. Our people and our resources are pledged to secure that protection. From that determination no American flinches.
PREFERS COUNCIL TABLE
This by no means implies that the American republics disassociate themselves from the nations of other continents—it does not mean the Americas against the rest of the world. We as one of the republics] reiterate our willingness to help the cause of world peace. We stand on our historic -offer to take counsel with all other nations of the world ! to the end that aggression among
them be terminated, that the race|
- of armaments cease and that com“merce be renewed, But the world has grown so small and weapons of attack so swift that no nation can be safe in its will to
peace so long as any other single | powerful nation refuses to settle its|
grievances at the council table. For if any Government bristling “\with implements of war insists on
policies of force, weapons of defense
give the only safety. . In qur foreign relations we have + jearned from the past what not to do. From new wars we have learned what’ we must do. We have learned that effective timing of defense, and the distant points from which attacks may be launched are completely different from what they were, 20 years ago.
We have learned that survival] cannot be guaranteed by arming
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after the attack egins=for there is new range and speed to offense. We have learned that long before any overt military act, aggression begins with preliminaries of propaganda, subsidized penetration, the ‘loosening of ties of good will, the stirring of prejudice and the incitement to disunion.
WORDS MAY BE FUTILE
L ‘We have learned that God-fearing| { democracies of the world which ob-|3 serve the sanctity of treaties and: good faith in their dealings with|s other nations cannot safely be in-|: different to international lawlessness|# anywhere. They cannot forever Jlet|§
pass, without effective protest, acts| #8
of aggression against sister nations 4 —acts which’ automatically “under- ;
mine all of us.
Obviously they must proceed along practical, peaceful lines. But the
to intervene -with arms ito prevent ‘acts of aggression does not mean
no aggression at all. Words may be futile, but war is not the only means. of conmimanding a decent re-
war, but stronger and more effec-
aggregate sentiments of our own people. At the very least, ‘we “can and should avoid any action, or any lack of action, which will encourage, assist or build up an aggressor. We have learned that when we deliberately try to legislate neutrality, our neutrality laws may operate unevenly and unfairly—may actually give aid to an aggressor and deny it to the victim.’ The instinct of self-preservation should warn us that we ought not to let that happen any more,
And we have learned something else—the old, old lesson that probability of - attack is mightily decreased by the assurance of an ever ready defense. Since 1931 world events of thunderous import have moved with lightning speed. During these eight years many of our people clung to the hope that the innate decency of mankind would protect the unprepared who showed theid innate trust in mankind. Today we are all wiser—and sadder. Under modern conditions what we mean by “adequate defense”’—a policy subscribed to by ali—must be divided into three elements. First we must have armed forces and defenses strong enough to ward oi sudden attack against strategic positions and key facilities essential to ensure sustained resistance and ultimate victory. Secondly we must have the organization and location of those key facilities so that they may be immediately utilized and rapidly expanded to meet all needs without danger of serious interruption by enemy attack.
SPECIAL MESSAGE SOON
In the course of a few days I shall send you a special message making recommendations for those two essentials of defense against danger which we cannot safely assume will not “come.
If these first two essentials are reasonably provided for, we must be able confidently to invoke the third element, the underlying strength of citizenship—the self-confidence, the ability, the imagination and the devotion that give the staying power to see things through.
A strong and united nation may. be destroyed if it is unprepared against sudden attack. But even a nation well armed and well organized from a strictly military standpoint, may, after a period of time, meet defeat if it is unnerved by self-distrust, endangered by class prejudice, by dissension between capital and labor, by false economy and. by other unsolved social problems at home. In mgeting the troubles of the world ye must meet them as one people—with a unity born of the fact that for generations those who have come to our shores, representing many kindreds and tongues have been welded by common opportunity into a united patriotism. If another form of government can present a united front in its attack on a democracy, the attack must be met by a united democracy. Such
mere fact that we rightly decline
that we must act as if there were|:
spect for the opinions of mankind. |§ There are many methods short of;
tive than mere words, of bringing). home to aggressor governments the
a democracy can and must exist in the United States. A dictatorship may command the full strength of a regimented nation. But the united strength of a democratic nation can be mustered only when its people, educated by modern standards to know what is going on and where they are going, have conviction that they ere receiving as large a share of opportunity for development, as large a share of material success and of human dignity, as they have a right to receive.
Our nation’s program. of social and economic reform is therefore a part of defense as basic as armaments themselves. Against the background of events in Europe, 4n. Africa and ia Asia during these recent years, the pattern of what we have accomplished since 1933 appears in even clearer focus. ; For the first time we have moved upon deep-seated problems aTecting our national strength anc have forged national instruments adequate to meet them. ' . ' Consider what the seemingly piecemeal struggles of these six years add up to in terms of realistic national preparedness. We are conserving and developing natural resources — land, water, power, forests. We are trying to provide necessary food, shelter and medical care
for the health of our population.
We are putting agricultu re—our system of food and fiber supply—on a sounder basis. We are strengthening the weakest spot in our system of industrial supply—its long smouldering labor difficulties. 3
DEPOSITORS’ MONEY SAFE
We have cleaned up our credit system so that- EE and investor alike may more readily -and willingly make, their capital available for peace or war. We are giving to our youth new opportunities for work and.education. We have sustained the morale of all the population by the dignified recognition of our obligations to the aged, the helpless aid the needy. _ Above all, we have made the American people conscious of their inter-relationship and their interdependence. They sense a common destiny—and a common reéd of each other. Differences of occupation, geography, race and religion no longer obscure the nation’s fundamental unity in thought and in action. We have our difficulties, true—but we are a wiser amtl a tougher nation than we were in 1929, or 1932. Never have there been six years
of such far-flung internal .prepared-
{labor strife and emplo
Congress.
ness in our history. And all this has been done without any dictator's power to :.command, without: conscription of labor er confiscation of capital, - without concentration camps, and without a scratch on freedom of speech, freedom of the press or the rest of the bill of rights. We see things now that we could not see along the way. The tools of government which we had in 1933 are outmoded. We have had to forge new tools for a new role of government in democracy—a role of new responsibility for new needs and in-
creased responsibility for old needs,|
long neglected.
MORE SECURITY NEEDED
Some of these tools had to be roughly shaped and still need some machining down. Many of those who fought “bitterly against the forging of these new tools welcome their use today: The American people, as a whole, have accepted them. The nation looks to the Congress to improve the new
machinery which we have perma-.
nently installed, provided that in the process the social usefulness: of the machinery is not destroyed or impaired.
All of us agree that we should simplify and improve laws if experience and operation clearly demonstrate the need. For instance, all of us want better provision for our older people under our social security legislation. For the medically needy we must provide better care. Most of us agree that for the sake of employer and employee alike we must find ways, to end factional yerzemployee disputes. Most of us recognize that none of these tools can be put to maxi-
| mum effectiveness unless the execu-}
tive processes of Government are revamped—reorganized, if you will— into more . effective , combinations And even after such reorganization it will take time to develop administrative personnel and experience in order to use our new tools with a minimum of mistakes. The Congress, of course, needs no further information. on this.
With this exception of legislation to provide greater government efficiency, and with the exception of legislation to ameliorate our railroad and other transportation problems, the past three Congresses have met in part or in whole the pressing needs of the new ordér of things. We have now passed the ‘period of internal conflict in the launching. of our program of social reform. Our full energies may now be released to invigorate the processes of recovery in order to preserve our reforms, and to give every man and
woman: who wants to ‘work a real!
job at a living wage.
But ‘time is of paramount im-
; pe the so-called “monopoly
investigation. 2
farm program fo. protect, farmers’ income and consumers’ purchasing power from alternate risks of crop gluts and crop shortages. ,
They include wholehearted ac-
j |ceptance of new standards of hon-
esty in our financial markets. ~ They include reconcilement : of
| enormous, antagenistic ' interests— | some of them long in litigation—in
EL | the railroad and general, transpeor-
| tation field, They include the working out of |
new techniques—private, state and Federal—to protect the public in-
| terest in and to develop wider mar-
kets for electric power.. They include a revamping of the
9 tax relationships between Federal, RH | state and local units of government, &| and consideration of relatively small
Times-Acme., Photo.
Speaker: of the House William Bankhead is shown on the restrum as s he ‘swore in all members of the 76th
portance. The deadline of danger from within and from without is not within our control. The hourglass may be in the hands of other
nations. Our own hour-glass tells|
us that we are off on a race to make democracy work, so that we may be efficient in peace and therefore secure in self-defense. This time element forces us to still greater efforts to attain the full employment of our labor and our capital. The first duty of our statesmanship today is to bring capital and manh-power together. Dictatorships do this by main force. By using main: force they apparently succeed at it—for the moment. However we abhor their methods, we are compelled to ad‘mit that’ they have obtained substantial utilization of all their material and human resources: ‘Like it or not, they have solved, for a time at least, the problem of idle men and idle capital. Can we compete with them by boldly seeking methods of putting idle men and idle capital together and, at the same time, remain within our American way of life, within the bill of rights, and within the’ bounds of what is, from our point of view] civilization itself?
tax increases to adjust inequalities without interfering with the aggreBate income of the American people.
TIME ‘DECIDING FACTOR
They include the ‘perfecting of labor organization and a universai ungrudging attitude ' by employers | toward ‘the labor movement, until there is’ a ‘minimum of interruption of ‘production and employment because of disputes, and acceptance by Labor of the truth that the welfare of Labor ‘itself depends on increased (balanced output of goods. To be immediately practical, while proceeding with a steady evolution in the solving of these and like problems, we must wisely use instrumentalities, like Federal investment, which are immediately available to us. Here, as. elsewhere, time is the deciding factor in our choice of remedies.
KEEP UP. INVESTMENTS ,
Therefore, it does not seem logical to me, at the moment we seek to increase production and consumption, for the Federal Government to consider a drastic curtailment of its own investments.
‘The whole suk ject of government investing and government income is one which may be approached in two different ways. The first calls for the elimination of enough activities of government |d to bring the expenses of government immediately .info balance with income of government. This school of thought maintains that because our national income this year is only 60 billion dollars, ours is only a 60billion dollar country; that governIment must treat it as such; and that without the help of government, it may some day, somehow,
They include a perfecting of our}.
happen to become an 80-billion dollar country. If the Congress decides to accept this point of view, it will logically have to reduce the present functions or activities of government by
-| one-third. The Congress will have
to accept the responsibility for such reduction; and the Congress will have to determine which activisies are to be reduced.
MUST PAY ON DEBT
Certain expenditures we cannot possibly reduce, such as the interest on the public debt. A few mil-
lion dollars saved here or there in the normal or in curtailed work of the old departments and commissions will make no great savings in the Federal budget. Therefore, the Congress would have to reduce drastically some of certain large items, such as aids to agriculture and soil conservation, veterans’ pensions, flood control, highways, waterways and other public works, grants for social and health security. Civilian Conservation Corps activities, relief for the unemployed, or national defense.
‘The Congress alone has the power to do all this, as it is the appropriating branch of the Government. The other approach to the question of government spending takes the position that this nation ought not to be and need not be only a 60 billion dollar nation; that at this moment it. has the men and the resources sufficient to make it at least and 80 billion dollar nation. This school of thought does not believe that it can become an 80 billion dollion nation in the near future if government cuts its operations by one-third. It is convinced that if we were to try if, we would invite disaster—that. we would not long remain even a 60 billion dollar nation.
1| There are many complicated factors
with which we have to deal, but we have learned that it is unsafe to make abrupt reductions at any time in our nef, ~xpenditure program. By our common sense action of resuming Government activities last spring, we have reversed a recession and started the new rising tide of prosperity and national income which we are now just beginning to enjoy.
maintained, there is a good prospegt of our becoming an eighty billion dollar country in a very short time. With such a national income, present tax laws will yield enough each year to balance each year’s expenses. It is my conviction ‘that down in their hearts the American public— industry, agriculture, finance—wants this Congress to do whatever needs to be done to raise our national in-
come to 80 billion dollars a year.
If Government activities are fully
Investing soundly must: pret spending wastefully. To against opportunitst appropriatia I have on several' occasions dressed the Congress on the in portance of permanent long-ran planning. I hope, therefore, that fol lowing my recommendation of year, a‘ permanent agency will be set up and authorized to report on urgency and desirability of the vai ous types of government investthe Investment for prosperity. can be made in a democracy.
- I hear some people say “tis is all so complicated. = There are ‘cer advantages in a dictatorship. It gets rid of labor trouble, of un= employment, of wasted motion and of having to do your own t My answer is “yes, but it also get: rid of some other things which we Americans intend very definitely to keep—and ‘we still intend to do our own thinking.” It will cosc us taxes and the v untary risk of capital to attain some of the practical advantages which other forms of government have acquired. Dictatorship, however, involves costs which the American people will never: pay. The cost of our spiritual - values. The cost of the blessed right of being able to sa what we please. The cost. of free: dom’ of religion. The cost of seein our capital confiscated. The cost of being cast into a concentration camp. The cost of being afraid to walk down the street with the wrong neighbor. The cost of having our children brought up not as free and dignified human oe but as pawns molded and enslaved by a machine. :
RECALLS PROPHESY
If the avoldance of these costs means taxes. on ‘my income; if avoiding these costs means taxes on my estate at death, I would bear those taxes willingly as the price of my breathing and my children breathing the free air of a free country, as the price of a living and not a dead world. Events abroad have made it increasingly clear to the American people that dangers within are less to be feared than dangers from without. If therefore a solution of this problem of idle men and idle capital is the price of preserving our liberty, no formless selfish fears can stand in our way. Once I prophesied that this gener ation of Americans had a rendezvous with destiny. That prophesy comes true. To us much is given; more is expected. This generation will “nobly save or meanly lose the last best hope of earth’. . . The way is plain, peaceful, generous, just—a way which if followed the world will forever ap=
plaud and God must forever bless.”
NOT SPENDING TOO MUCH
We suffer from a great Eerie ment of capital. Many people have the idea that as a nation we are overburdened with debt and are spending more than we can afford. That is hot so, Despite our Federal Government expenditures the entire debt of our national economic system, public and private: together; is no larger today than it was. 1929,
and the interest thereon is far less :
than it was in 1929.
The object is to put capital — private as well as public—to work. We want to get enough capital and labor at work to give us a total turnover of business, a total national income; of at least 80 billion dollars a year. At that figure we shall have a substantial reduction of unemployment, and the Federal revenues will be sufficient to balance the current level of cash expenditures on the basis of the existing tax structure. That figure can be at-
tained, working within the frame-|,
work of our traditional profit system.
The factors in attaining and maintaining that amount of national income are many and complicated.
They include more widespread understanding among businessmen of many changes which world conditions and - technological improvements have brought to our’ economy over the last twenty years—changes in the interrelationship of price and volume and employment, for instance—changes of the kind in which businessmen are now educating! themselves through oppor-
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