Evening star., 1932-09-24

c., SATURDAY. SEP
and unemployment ended, and to bring
the Western farmer back to his accus-
toned level OF prosperity and to assure
permanent safety to both groups.
THAT is why soniS enlightened in
duStries themselves endeavTc to limit
the freedom of action of eacn man and
business group within the industry in
the common interest of all; why buSi-
ness men everywhere are asking O form
OF organization which will bring the
scheme of things into balance, even
though 1t may in some measure qualify
the freedom of action Of individual
units within the business.
THE exposition need not further be
elaborated. 1t is brief and incomplete
but you will be able to expand 1t in
terms OF your own business or occu-
patton without dificuIty. I think every
one who has actually entered the eco
nomic struggle-which means every one
who was not born to safe wealth.
knows in his own experience and his
own life that We have now to apply
the earlier concepts of American Gov
ernnent to the conditions Of today.
Government as q Contract.
"The Declaration of Independence
discusses the problem of government
in terms OF contract. Government is a
relation of give and take, a contract
perforce, If we would follow the think
ing out of which it grew. Under such
a contract rulers were accorded power,
41I - hot
on consideration that they be accorded
certain rights. The task of statesman
ship has always been the redefinition
of these rights in terms Of changing
and growing social order. New condi-
tions impose new requirements upon
government and those who conduct
government.
IT held, for example, in proceedings
before me as Governor, the purpose OF
which was the removal Of the sheriff
of New York, that under modern con-
ditions it was not enough for public
official merely to evade the legal terms
Of official wrongdoing. He owed posi-
tive duty as well I said, in substance.
that If he had acquired large sums of
money he was when accused required to
explain the sources of such wealth. To
that extent this wealth was colored
with public interest. said that pub
lie servants should, even beyond private
citizens, in financial matters be held to
stern and uncompromising rectitude.
II feel that we are coming to view
through the drift Of our legislation and
our public thinking in the past quarter
century that private economic power
is, to enlarge an old phrase, a public
trust as well. I hold that continued
enjoyment Of that power by any indi-
vidual or group must depend upon the
fulflllment of that trust. The men who
have reached the summit Of American
business life know this best. Happily,
many Of these urge the binding quality
of this greater social contract.
THE terms Of that contract are as
old as the Republic and as new as the
new economic order
Every man has right to life, and
this means that he has also a right to
make comfortable living. He may by
sloth or crime decline to exercise that
right, but 1t may not be denied him.
We have no actual famine or dearth;
our industrial and agricultural mechan-
ism can produce enough and to spare.
Our Government, formal and informal,
political and economic, owes to every
one an avenue to possess himself Of
portion OF that plenty sufficient for his
needs through his own work
Every man has right to his own
property, which means a right to be
assured. to the fullest extent attainable,
in the safety of his savings. BY no
other means can men carry the bur-
dens Of those parts of life which, in
the nature Of things, afford no chance
of labor-childhood, sickness, old age.
In all thought of property this right is
paramount. All other property rights
must yield to it. II, in accord with
this principle, We must restrict the
operations of the speculator, the
manipulation, even the financier. I be-
lieve we must accept the restriction as
needful, not to hamper individualism,
but to protect it.
Princes Of Property.
These two requirements must be
satisfied, in the main, by the indi-
viduals who claim and hold control Of
the great industrial and financial COM
binationS which dominate SO large a
part OF our industrial life. They have
undertaken to be not business men but
princes-princes Of property.
Il am not prepared to say that the
system which produces them is wrong.
am very clear that they must fear
lessly and competently assume the re-
sponsibility which go with the power.
So many enlightened business men know
this that the statement would be little
more than a platitude, were it not for
an added implication.
This implication is briefly. that the
responsible heads of finance and
INDUSTRY instead of acting each for him
self. must work together to achieve the
common end.
They must, where necessary sacrifice
this or that private advantage; and in
reciprocal Self-denial must seek gen.
eral advantage. 1t is here that formal
government political government, If you
choose-comes in. Whenever in the
pursuit of this objective the lone wolf,
the unethical competitor, the reckless
promoter, the IShmael or insult whose
hand Is against every mans, declines to
join in achieving an end recognized
as being for the public welfare, and
threatens to drag the industry back to
a state of anarchy, the Government may
properly be asked to apply restraint;
likewise, should the group ever use its
collective power contrary to the public
welfare, the Government must be swift
to enter and protect the public interest.
THE Government should assume the
function of economic regulation only as
last resort, to be tried only when
private initiative, inspired by high re-
sponsibility, with such assistance and
balance as government can give, has
finally failed. As yet, there has been
no final failure, because there has been
no attempt; and I decline to assume
that this Nation Is unable to meet the
situation
1.-The final term Of the high contract
was for liberty and the pursuit Of hap
piness. We have learnt great deal Of
both In the past century. We know that
individual liberty and individual hap
piness mean nothing unless both are
nrdered in the sense that one mans