Evening star., 1932-10-22

going to talk with you about q form Of
property rights, which has direct
bearing on our present and future en-
joyment of life. You and know that
many millions Of Americans have some
kind of an interest in some form OF
property. From the point Of view of
the average citizen this interest in
property takes the form Of bank de-
posits. of trust funds, of insurance
policies, or of land or security owner
ship.
In addition to individuals, thousands
upon thousands of institutions created
! for the public good have similar in
| terests- the churches, the hospitals
the relief funds, the schools and col
! leges and other non-profit making
organizations of many kinds.
Most of the property of these indi-
vidualS and OF these institutions is In
vested in some form of long-term Sc
curity. Let me illustrate: Our national
economic life is in large part tied up
in underlying bonds that represent in
fact mortgages on American railroads.
on American industry, on American
land and on three forms OF American
government-th national, State and
| local governments of the United States.
Prices Important to All.
These securities are bought and sold
and 1t Is a fact that the prices at
which they sell are important to every
one Of U.S. even though we individually
and Immediately may own none Of
them
1t may be said that they are the me-
dium by which the savings of Ameri-
cans are put to work. For example,
your savings in the savings bank do not
60 into the vaults OF the savings bank,
but are put out by the bank at inter-
est for your benefit. In the same way,
the premium that you pay to build
case into investments. All Of them rep
resenting some interest in the stable
institutions of America
Many months ago in attempting to
see the economic situation of this coun-
try as a whole in simple terms and in
terms so full of meaning that I could
at q glance encompass the need Of the
entire country. ! set down list of the
eight great credit groups of this coun-
try. I conceive this list to represent
the credit interest Of the Nation, North
and South, East and West. employer
and ernploye. industry. commerce and
agriculture. conceive these eight
groups as representing the foundation
osoAiSo upOll WliiCii tllc CTeu-
1t of this country rests. l said then,
and say now. that the stability of the
country rests not on any one, but on all
OF these and that when We want to
know whether anything is disturbing
the stability of the country We want to
see whether any of these foundation
stones are cumbling away or whether
The ground underlying these stones Is
weakened by any cause. This is the
way to comprehend the stability of the
country as whole, and in my opin-
ion 1t is the only way 1t is with this
in mind that I conceived the plan of
NY campaign. 1t was with this in mind
that I ordered the presentation of the
various subjects that I have discussed
with the people of this country. 1 made
my plan in accordance with this COM
prehensive picture of national needs.
attempted to discuss these In an order
ly fashion, carefully, simply, with sys-
tenn and with a deep regard for the
facts. have not been shaken from
this plan. have refused to be intim-
ldated by my opponents. 1 have kept
the faith with this plan as I have kept
he faith with the platform Of nv party.
because believe in the sound sense of
the American people l knew they
would hear me, and 1 knew they would
hear me to the end, in spite of all the
rear and all the terrorism that the
leaders of the Republican party have
oeen seeking to purchase
Discusses Each Group.
And now, at the end of October. I
come to resume of this subject of
credit. want to set forth these points
these eight credit groups, and to talk
briefly about the conditions of each. At
the end of my discussion, which in the
last analysis is summary of what I
have been talking about for many
weeks, you will see what the condition
OF the country is with reference to
credit, what these groups need and
what the Democratic party proposes to
do about it.
First-Federal obligations:
At the very top of the credit structure
OF the country, surprising all other
groups IN moral and material impor-
lance, stand the obligations of the Fed
eral Government. These are paramount.
because government is essential to ali
ordered economic life. When they 20,
everything goes. Happily these obliga-
tions are secure. They suffer only to
the extent that Government is permitted
10 be eXtravagant, WaStefui or ILL
managed. They suffer if the Federal
budget is not balanced and particularly
where the deficit of one year is not
cleared up in the succeeding year.
l called attention in my address at
Pittsburgh Wednesday night to the
great Importance of Federal budget
making as the foundation of the ma
tlonal credit. l pointed out that the
Hoover administration had been respon-
slble for deficit after deficit; that as one
nyr InrJ
tempt was made to arrange the finances
of the country so that at least the
mounting loss of revenue might not be
turned into deficit for the next year.
It is my pledge and promise that this
dangerous kind of financing shall be
stopped and that rigid governmental
economy shall be forced by stern and
unremitting administration policy of liv-
ing within our income.
State Obligations.
Second-State obligations:
State obligations constitute one Of the
most sound and safe groups of the en-
tire credit structure A State is gener-
ally required by dire necessity if for no
other reason, to live within its income.
If it runs deficit one period. it must
make provision for that deficit in the
budget of the following period.
In fact in New York when we run q
deficit the constitution Of the State re-
quires us to provide in the budget for
the following year not merely for cur
rent needs, but also for revenue with
which to pay the deficit of the past year.
And have strictly lived up to this re-
Quirement. This is the best guarantee
OF credit stability known, and 1t ac-
counts for the fact that the credit of
the State of New York makes its bonds
almost the highest grade of investment
known to the country
Third-Municipal bond issues:
The next great credit group includes
the obligations of cities. counties, towns,
villages and other local units. This is
very large group. A fair estimate Is
over II billions of these local bonds.
They are largely held by individuals and
by institutions and are properly a mat
ter OF deep public concern. The sound
ness of these bonds is directly bound UP
with fho hp1octyy oaH no I,tli{,, ,,,i&i,