Evening star., 1932-07-05

could not meet interest and amortiza-
ton on their mortgages. Business
houses unable to sell their merchandise
could not pay their debts, and fore
closures and bankruptcy Joined the
forces of destruction. When debts be-
came uncollectable banks and other
financial institutions were compelled,
in, order to meet the demands OF their
depositors, to reduce the amount Of
their loans even to their solvent Gus
toners. The business man who could
not get credit at the bank was In turn
forced to restrict his operations, and
more men were let out to join the
growing army of unemployed.
Illustration Given.
Each succeeding step aggravated a
bad condition. Each turn quickened
the slide down the toboggan of depres-
sion. That is the vicious spiral which
has been whirling the country steadily
downward into the abyss Of suffering
and Stagnation.
"A few Illustrations will serve to show
precisely how that condition has af-
flicted the business life OF our country.
Imagine, if you please, long freight
train moving the production OF this
Nation Of its farms, mines and fac
tories. For every hundred cars that
were in that train in April, 1928. there
we're 81 cars in April 1929, SO cars in
April, 1890. 70 cars in April, 1881, and
only 81 cars in April, 1882.
These figures reveal the continued
construction of American business.
Forty-three of that hundred-car train
are today empty and idle because the
factories that used to fill them with
merchandise are entirely or partly
closed. The men who worked in those
factories are idle Their families are
in desperate need With these figures,
we begin to understand how it happens
that in 124 cities alone more than a
million proud American families are,
according to official reports, eating the
bread of charity.
About four million people normally
look to the construction industries for
living. In 1929 we did more than
nine billion dollars worth Of conStruc-
tion. For 1882 we have less than three
billion in prospect. That decline alone
accounts for about 100000 men out
of work
Employment in the factories has
steadily declined until four out of every
ten men thus normally employed are
now out of jobs. 1t is conservatively
estimated that altogether there are in
the United States today more than
10000. 900 wage earners ready and
eager to work. but unable to find a
place to earn their bread.
Advocated Preparedness.
mo further proof, it seems to me,
is necessary that the problem is and
has been for long time in the nature
of a national catastrophe which dare
not be left to continue its fury unre-
sisted. Our economic life is beset with
a creeping paralysis, which, if not
checked, will destroy and demoralize
the Nation.
This is not the first time that I
speak of this problem. Long before the
Nation was aware of any sign of ap-
preaching depression I publicly adyo-
Gated adequate preparedness to meet
this very situation which has brought
untold agony to our people. Since then
have repeatedly urged action along
the lines now proposed in the bill l
shall describe. I am convinced that
now, at last, ali elements Of responsible
public opinion in this country have
come to recognize the irresistible neces-
sity of taking such action.
What do we propose to do? First,
we propose to help relieve the desper-
ate and 1rrepresSlble needs OF the deSt1-
tute, so that no one in the United
States shall have cause to go cold or
hungry Second we propose to launch
and finance a gigantic program of con-
struction, both public and private. And
third. we propose to help finance agri-
culture, industrial and commercial un-
dertakings, where credit for proper en-
terprises cannot be obtained through
normal banking channels. Our ulti-
mate object is to initiate a program
which will create a demand for COM
modities and labor. We hope thereby
to help check the decline Of prices
When prices stop falling private bust
ness will resume its normal activity
without governmental assistance
What means and methods does our
bill provide to carry these purposes into
effect?
For the relief of destitution $780,
000, 900 is provided out of the funds of