paign.
You have nominated me and I know it, and I am here to thank you for the honor.
Let it also be symbolic that in so doing I broke traditions. Let it be from now
on the task of our Party to break foolish traditions. We will break foolish
traditions and leave it to the Republican leadership, far more skilled in that
art, to break promises.
Let us now and here highly resolve to resume the country's interrupted march
along the path of real progress, of real justice, of real equality for all of
our citizens, great and small. Our indomitable leader in that interrupted
march is no longer with us, but there still survives today his spirit.
Many of his captains, thank God, are still with us, to give us wise
counsel. Let us feel that in everything we do there still lives with us,
if not the body, the great indomitable, unquenchable, progressive soul of
our Commander-in-Chief, Woodrow Wilson.
I have many things on which I want to make my position clear at the
earliest possible moment in this campaign. That admirable document,
the platform which you have adopted, is clear. I accept it 100 percent.
And you can accept my pledge that I will leave no doubt or ambiguity on
where I stand on any question of moment in this campaign.
As we enter this new battle, let us keep always present with us some of
the ideals of the Party: The fact that the Democratic Party by tradition
and by the continuing logic of history, past and present, is the bearer
of liberalism and of progress and at the same time of safety to our
institutions. And if this appeal fails, remember well, my friends,
that a resentment against the failure of Republican leadership—and note
well that in this campaign I shall not use the word "Republican Party,"
but I shall use, day in and day out, the words, "Republican leadership" —
the failure of Republican leaders to solve our troubles may degenerate into
unreasoning radicalism.
The great social phenomenon of this depression, unlike others before it, is
that it has produced but a few of the disorderly manifestations that too
often attend upon such times.
Wild radicalism has made few converts, and the greatest tribute that I can
pay to my countrymen is that in these days of crushing want there persists
an orderly and hopeful spirit on the part of the millions of our people who
have suffered so much. To fail to offer them a new chance is not only to
betray their hopes but to misunderstand their patience.
To meet by reaction that danger of radicalism is to invite disaster.
Reaction is no barrier to the radical. It is a challenge, a provocation.
The way to meet that danger is to offer a workable program of
reconstruction, and the party to offer it is the party with clean hands.
This, and this only, is a proper protection against blind reaction on the one
hand and an improvised, hit-or-miss, irresponsible opportunism on the other.
There are two ways of viewing the Government's duty in matters affecting economic
and social life. The first sees to it that a favored few are helped and hopes
that some of their prosperity will leak through, sift through, to labor,
to the farmer, to the small business man. That theory belongs to the
party of Toryism, and I had hoped that most of the Tories left this
country in 1776.
But it is not and never will be the theory of the Democratic Party. This is no
time for fear, for reaction or for timidity. Here and now I invite those
nominal Republicans who find that their conscience cannot be squared with
the groping and the failure of their party leaders to join hands with us;
here and now, in equal measure, I warn those nominal Democrats who squint
at the future with their faces turned toward the past, and who feel no
responsibility to the demands of the new time, that they are out of step
with their Party.
Yes, the people of this country want a genuine choice this year, not a choice
between two names for the same reactionary doctrine. Ours must be a party
of liberal thought, of planned action, of enlightened international
outlook, and of the greatest good to the greatest number of our citizens.
Now it is inevitable—and the choice is that of the times—it is inevitable
that the main issue of this campaign should revolve about the clear fact
of our economic condition, a depression so deep that it is without
precedent in modern history. It will not do merely to state, as do
Republican leaders to explain their broken promises of continued inaction,
that the depression is worldwide. That was not their explanation of the
apparent prosperity of 1928. The people will not forget the claim made by
them then that prosperity was only a domestic product manufactured by a
Republican President and a Republican Congress. If they claim paternity
for the one they cannot deny paternity for the other.
I cannot take up all the problems today. I want to touch on a few that are
vital. Let us look a little at the recent history and the simple economics,
the kind of economics that you and I and the average man and woman talk.
In the years before 1929 we know that this country had completed a
vast cycle of building and inflation; for ten years we expanded on the
theory of repairing the wastes of the War, but actually expanding far
beyond that, and also beyond our natural and normal growth. Now it is
worth remembering, and the cold figures of finance prove it, that during
that time there was little or no drop in the prices that the consumer
had to pay, although those same figures proved that the cost of production
fell very greatly; corporate profit resulting from this period was enormous;
at the same time little of that profit was devoted to the reduction of prices.
The consumer was forgotten. Very little of it went into increased wages; the
worker was forgotten, and by no means an adequate proportion was even paid out
in dividends—the stockholder was forgotten.
And, incidentally, very little of it was taken by taxation to the beneficent
Government of those years.
What was the result? Enormous corporate surpluses piled up — the most stupendous
in history. Where, under the spell of delirious speculation, did those surpluses
go? Let us talk economics that the figures prove and that we can understand. Why,
they went chiefly in two directions: first, into new and unnecessary plants
which now stand stark and idle; and second, into the call-money market of
Wall Street, either directly by the corporations, or indirectly through
the banks. Those are the facts. Why blink at them?
Then came the crash. You know the story. Surpluses invested in unnecessary
plants became idle. Men lost their jobs; purchasing power dried up; banks
became frightened and started calling loans. Those who had money were
afraid to part with it. Credit contracted. Industry stopped. Commerce
declined, and unemployment mounted.
And there we are today.
Translate that into human terms. See how the events of the past three
years have come home to specific groups of people: first, the group
dependent on industry; second, the group dependent on agriculture;
third, and made up in large part of members of the first two groups,
the people who are called "small investors and depositors." In fact,
the strongest possible tie between the first two groups, agriculture
and industry, is the fact that the savings and to a degree the
security of both are tied together in that third group—the credit
structure of the Nation.
Never in history have the interests of all the people been so united
in a single economic problem. Picture to yourself, for instance, the
great groups of property owned by millions of our citizens, represented
by credits issued in the form of bonds and mortgages—Government bonds of
all kinds, Federal, State, county, municipal; bonds of industrial
companies, of utility companies; mortgages on real estate in farms
and cities, and finally the vast investments of the Nation in the
railroads. What is the measure of the security of each of those
groups? We know well that in our complicated, interrelated credit
structure if any one of these credit groups collapses they may all
collapse. Danger to one is danger to all.
How, I ask, has the present Administration in Washington treated the
interrelationship of these credit groups? The answer is clear: It has
not recognized that interrelationship existed at all. Why, the Nation
asks, has Washington failed to understand that all of these groups,
each and every one, the top of the pyramid and the bottom of the pyramid,
must be considered together, that each and every one of them is dependent
on every other; each and every one of them affecting the whole financial fabric?
Statesmanship and vision, my friends, require relief to all at the same time.
Just one word or two on taxes, the taxes that all of us pay toward the cost of
Government of all kinds.
I know something of taxes. For three long years I have been going up and
down this country preaching that Government — Federal and State and local — costs
too much. I shall not stop that preaching. As an immediate program of action we
must abolish useless offices. We must eliminate unnecessary functions of
Government — functions, in fact, that are not definitely essential to the
continuance of Government. We must merge, we must consolidate
subdivisions of Government, and, like the private citizen, give up
luxuries which we can no longer afford.
By our example at Washington itself, we shall have the opportunity of
pointing the way of economy to local government, for let us remember
well that out of every tax dollar in the average State in this Nation,
40 cents enter the treasury in Washington, D. C., 10 or 12 cents only go
to the State capitals, and 48 cents are consumed by the costs of local
government in counties and cities and towns.
I propose to you, my friends, and through you, that Government of all kinds,
big and little, be made solvent and that the example be set by the President
of the United States and his Cabinet.
And talking about setting a definite example, I congratulate this convention
for having had the courage fearlessly to write into its declaration of principles
what an overwhelming majority here assembled really thinks about the 18th Amendment.
This convention wants repeal. Your candidate wants repeal. And I am confident that the
United States of America wants repeal.
Two years ago the platform on which I ran for Governor the second time
contained substantially the same provision. The overwhelming sentiment of
the people of my State, as shown by the vote of that year, extends, I know,
to the people of many of the other States. I say to you now that from this
date on the 18th Amendment is doomed. When that happens, we as Democrats must
and will, rightly and morally, enable the States to protect themselves against
the importation of intoxicating liquor where such importation may violate their
State laws. We must rightly and morally prevent the return of the saloon.
To go back to this dry subject of finance, because it all ties in together — the
18th Amendment has something to do with finance, too—in a comprehensive
planning for the reconstruction of the great credit groups, including Government
credit, I list an important place for that prize statement of principle
in the platform here adopted calling for the letting in of the light of
day on issues of securities, foreign and domestic, which are offered for
sale to the investing public.
My friends, you and I as common-sense citizens know that it would help to
protect the savings of the country from the dishonesty of crooks
and from the lack of honor of some men in high financial places.
Publicity is the enemy of crookedness.
And now one word about unemployment, and incidentally about agriculture.
I have favored the use of certain types of public works as a further
emergency means of stimulating employment and the issuance of bonds to
pay for such public works, but I have pointed out that no economic end
is served if we merely build without building for a necessary purpose.
Such works, of course, should insofar as possible be self-sustaining if
they are to be financed by the issuing of bonds. So as to spread the
points of all kinds as widely as possible, we must take definite steps
to shorten the working day and the working week.
Let us use common sense and business sense. Just as one example,
we know that a very hopeful and immediate means of relief, both for
the unemployed and for agriculture, will come from a wide plan of the
converting of many millions of acres of marginal and unused land into
timberland through reforestation. There are tens of millions of acres
east of the Mississippi River alone in abandoned farms, in cut-over land,
now growing up in worthless brush. Why, every European Nation has a definite
land policy, and has had one for generations. We have none. Having none, we
face a future of soil erosion and timber famine. It is clear that economic
foresight and immediate employment march hand in hand in the call for the
reforestation of these vast areas.
In so doing, employment can be given to a million men. That is the
kind of public work that is self-sustaining, and therefore capable of
being financed by the issuance of bonds which are made secure by the
fact that the growth of tremendous crops will provide adequate security
for the investment.
Yes, I have a very definite program for providing employment by that means.
I have done it, and I am doing it today in the State of New York. I know
that the Democratic Party can do it successfully in the Nation. That will
put men to work, and that is an example of the action that we are going to have.
Now as a further aid to agriculture, we know perfectly well — but have we
come out and said so clearly and distinctly? — we should repeal immediately
those provisions of law that compel the Federal Government to go into the
market to purchase, to sell, to speculate in farm products in a futile
attempt to reduce farm surpluses. And they are the people who are talking
of keeping Government out of business. The practical way to help the farmer
is by an arrangement that will, in addition to lightening some of the
impoverishing burdens from his back, do something toward the reduction
of the surpluses of staple commodities that hang on the market. It
should be our aim to add to the world prices of staple products the
amount of a reasonable tariff protection, to give agriculture the same
protection that industry has today.
And in exchange for this immediately increased return I am sure that the farmers
of this Nation would agree ultimately to such planning of their production as
would reduce the surpluses and make it unnecessary in later years to depend on
dumping those surpluses abroad in order to support domestic prices. That result
has been accomplished in other Nations; why not in America, too?
Farm leaders and farm economists, generally, agree that a plan based on that
principle is a desirable first step in the reconstruction of agriculture. It
does not in itself furnish a complete program, but it will serve in great
measure in the long run to remove the pall of a surplus without the continued
perpetual threat of world dumping. Final voluntary reduction of surplus is a
part of our objective, but the long continuance and the present burden of
existing surpluses make it necessary to repair great damage of the present by
immediate emergency measures.
Such a plan as that, my friends, does not cost the Government any money,
nor does it keep the Government in business or in speculation.
As to the actual wording of a bill, I believe that the Democratic Party
stands ready to be guided by whatever the responsible farm groups
themselves agree on. That is a principle that is sound; and again I ask for action.
One more word about the farmer, and I know that every delegate in
this hall who lives in the city knows why I lay emphasis on the farmer.
It is because one-half of our population, over 50,000,000 people, are
dependent on agriculture; and, my friends, if those 50,000,000 people
have no money, no cash, to buy what is produced in the city, the city
suffers to an equal or greater extent.
That is why we are going to make the voters understand this year that this
Nation is not merely a Nation of independence, but it is, if we are to
survive, bound to be a Nation of interdependence—town and city, and
North and South, East and West. That is our goal, and that goal will be
understood by the people of this country no matter where they live.
Yes, the purchasing power of that half of our population dependent on
agriculture is gone. Farm mortgages reach nearly ten billions of dollars
today and interest charges on that alone are $560,000,000 a year. But
that is not all. The tax burden caused by extravagant and inefficient
local government is an additional factor. Our most immediate concern
should be to reduce the interest burden on these mortgages.
Rediscounting of farm mortgages under salutary restrictions must be expanded and
should, in the future, be conditioned on the reduction of interest rates.
Amortization payments, maturities should likewise in this crisis be extended
before rediscount is permitted where the mortgagor is sorely pressed. That, my
friends, is another example of practical, immediate relief: Action.
I aim to do the same thing, and it can be done, for the small home-owner
in our cities and villages. We can lighten his burden and develop his
purchasing power. Take away, my friends, that spectre of too high an interest
rate. Take away that spectre of the due date just a short time away. Save homes;
save homes for thousands of self-respecting families, and drive out that spectre
of insecurity from our midst.
Out of all the tons of printed paper, out of all the hours of oratory,
the recriminations, the defenses, the happy-thought plans in Washington
and in every State, there emerges one great, simple, crystal-pure fact
that during the past ten years a Nation of 120,000,000 people has been
led by the Republican leaders to erect an impregnable barbed wire entanglement
around its borders through the instrumentality of tariffs which have isolated
us from all the other human beings in all the rest of the round world. I
accept that admirable tariff statement in the platform of this convention.
It would protect American business and American labor. By our acts of the
past we have invited and received the retaliation of other Nations. I
propose an invitation to them to forget the past, to sit at the table
with us, as friends, and to plan with us for the restoration of the trade of the world.
Go into the home of the business man. He knows what the tariff has done
for him. Go into the home of the factory worker. He knows why goods do
not move. Go into the home of the farmer. He knows how the tariff has helped to ruin him.
At last our eyes are open. At last the American people are ready to
acknowledge that Republican leadership was wrong and that the Democracy is right.
My program, of which I can only touch on these points, is based upon
this simple moral principle: the welfare and the soundness of a Nation
depend first upon what the great mass of the people wish and need; and
second, whether or not they are getting it.
What do the people of America want more than anything else? To my mind,
they want two things: work, with all the moral and spiritual values that
go with it; and with work, a reasonable measure of security—security for
themselves and for their wives and children. Work and security—these are
more than words. They are more than facts. They are the spiritual values,
the true goal toward which our efforts of reconstruction should lead. These
are the values that this program is intended to gain; these are the values we
have failed to achieve by the leadership we now have.
Our Republican leaders tell us economic laws — sacred, inviolable,
unchangeable — cause panics which no one could prevent. But while they prate of
economic laws, men and women are starving. We must lay hold of the fact that
economic laws are not made by nature. They are made by human beings.
Yes, when — not if — when we get the chance, the Federal Government will
assume bold leadership in distress relief. For years Washington has
alternated between putting its head in the sand and saying there is no
large number of destitute people in our midst who need food and clothing,
and then saying the States should take care of them, if there are. Instead
of planning two and a half years ago to do what they are now trying to do,
they kept putting it off from day to day, week to week, and month to month,
until the conscience of America demanded action.
I say that while primary responsibility for relief rests with
localities now, as ever, yet the Federal Government has always had and
still has a continuing responsibility for the broader public welfare. It
will soon fulfill that responsibility.
And now, just a few words about our plans for the next four months.
By coming here instead of waiting for a formal notification, I
have made it clear that I believe we should eliminate expensive
ceremonies and that we should set in motion at once, tonight, my
friends, the necessary machinery for an adequate presentation of
the issues to the electorate of the Nation.
I myself have important duties as Governor of a great State,
duties which in these times are more arduous and more grave than
at any previous period. Yet I feel confident that I shall be able
to make a number of short visits to several parts of the Nation.
My trips will have as their first objective the study at first
hand, from the lips of men and women of all parties and all occupations,
of the actual conditions and needs of every part of an interdependent country.
One word more: Out of every crisis, every tribulation, every disaster,
mankind rises with some share of greater knowledge, of higher decency, of
purer purpose. Today we shall have come through a period of loose thinking,
descending morals, an era of selfishness, among individual men and women and
among Nations. Blame not Governments alone for this. Blame ourselves in equal
share. Let us be frank in acknowledgment of the truth that many amongst us have
made obeisance to Mammon, that the profits of speculation, the easy road without
toil, have lured us from the old barricades. To return to higher standards we
must abandon the false prophets and seek new leaders of our own choosing.
Never before in modern history have the essential differences between
the two major American parties stood out in such striking contrast as
they do today. Republican leaders not only have failed in material things,
they have failed in national vision, because in disaster they have held out
no hope, they have pointed out no path for the people below to climb back to
places of security and of safety in our American life.
Throughout the Nation, men and women, forgotten in the political
philosophy of the Government of the last years look to us here for
guidance and for more equitable opportunity to share in the
distribution of national wealth.
On the farms, in the large metropolitan areas, in the smaller cities and in
the villages, millions of our citizens cherish the hope that their old
standards of living and of thought have not gone forever. Those millions
cannot and shall not hope in vain.
I pledge you, I pledge myself, to a new deal for the American people.
Let us all here assembled constitute ourselves prophets of a new order
of competence and of courage. This is more than a political campaign;
it is a call to arms. Give me your help, not to win votes alone, but to
win in this crusade to restore America to its own people.
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