Evening star., 1933-05-08

the plans are carried out.
LET me illustrate with an example.
Take the cotton goods industry. It Is
probably true that 90 per cent Of the
cotton manufacturers would agree to
eliminate starvation wages, would agree
to stop long hours Of employment, would
agree to stop child labor, would agree
result in unstable surpluses.
But, what good is such an agree
ment If the other 10 per cent of cot
ton manufacturers pay starvation wages,
require long hours, employ children In
their mills and turn out burdensome
surpluses?
''The unfair 10 per cent could pro-
duce goods 50 cheaply that the fair 90
per cent would be compelled to meet
the unfair conditions. Here is where
Government comes in Government
the right, after surveying and planning
for an industry, to prevent, with the
assistance Of the overwhelming major
lty of that industry, unfair practice
and to enforce this agreement by the
authority of Government.
Anti Trust Laws Purpose.
"The so-called antitrust laws were
Intended to prevent the creation Of mo-
nopolies and to forbid unreasonable
profits to those monopolies. That pur-
pose of the antitrust laws must b
continued, but these laws were never
intended to encourage the kind Of un-
fair competition that results in long
hours, starvation wages and overpro-
duction.
"The same principle applies to farm
products and to transportation and
every other field Of organized private
industry.
I'VE are working toward definite
goal, which Is to prevent the return OF
conditions which came very close to de-
stroying what we call modern civiliza-
ton. The actual accomplishment OF our
purpose cannot be obtained in day.
Our policies are wholly within purposes
for which our American Constitutional
Government was established $50 years
ago. ..,,.
country will understand this and Will
also understand the spirit In which we
are undertaking this policy. l 90 not
deny that we may make mistakes oi
procedure as We carry out the poncy.
II have no expectation Of making q
hit every time come to bat. What
seek is the highest possible batting aver
are not only for myself but for the
team Theodore Roosevelt once saio
IN me. If 1 can be right IS per cent
OF the time shall come up 10 tne Iuii-
est measure of my hopes.
:Much has been said OF late ABOUT
Eaderal finances and imitation, the goio
Standard. etc. Let me make the iacts
yery simple and my policy very cleaI.
I'm the first place, Government Cleoi.
and Government currency are reaiiy ohe
and the same thlng. .S &c
Behind Government bonos Inere -
only promise to pay. benno Hosei1 "
ment currency we have, IN aooilrol ~
the promise to pay, reserve OF soio
end q ANAL reserve of silver. In this
Connection it is worth while remember
ing that in the past the Government
has agreed to redeem nearly thirty Dill
lions of its debts and its currency IN
gold. and private corporations In Ihls
Country have agreed to redeem anotner
sixty or seventy billions OF securities
and mortgages in gold. The Govern
ment and private corporations were
making these agreements when they
knew full we'll that all OF the goio ~
the United States amounted 10 oriy
between three and four piiions anu
that all Of the gold in all OF the Worio
amounted to only about eieVen oiiAoAS'
Gold Demand Effects.
"If the holders of these promises to
nav started in to demand gold, the first
comers would get gold for few days
and they would amount to about one
twenty-fifth of the holders OF the
securities and the currency. The other
"a people out of IS, who did not hap
hen to be at the top Of the line. would
be told politely that there was no more
| gold left.
I'VE have decided to treat all IS in
the same way in the interest OF justice
and the exercise Of the constitutional
powers of this Government. We have
placed every one on the same basis In
order that the general good may be pre-
served
Nevertheless. gold. and to a partial
extent silver, are perfectly good bases
| for currency and that is why decided
not to let any of the gold now in the
country go out OF 1t.
"A series of conditions arose three
weeks ago which very readily might
have meant, first drain on our gold
| by foreign countries, and, secondly. as
a result of that flight of American
capital. in the form of gold, out of our
country. 1t Is not exaggerating the
possibility to tell you that such an oc-
currence might we'll have taken from us
|
resulted in such a further weakening OF
our Government and private credit as
to bring on actual panic conditions and
the complete stoppage of the wheels
industry.
THE Administration has the definite
objective Of raising commodity prices
to such an extent that those who have
borrowed money will, on the average, be
| able to repay that money in the same
kind of dollar which they borrowed.
We do not seek to let them get
such cheap dollar that they will be
able to pay back q great deal less than
they borrowed.
I'm other words, we seek to correct
wrong and not to create another
wrong in the opposite direction. That Is
why powers are being given to the ad-
ministration to provide, if necessary, for
an enlargement Of credit, in order to
correct the existing wrong. These pow
ers will be used when. as. and If it may
be necessary to accomplish the purpose.
World Situation Related.
Hand in hand with the domestic
situation, which, of course, Is our first
concern, Is the world situation, and I
want to emphasize to you that the do
mestic situation is inevitably and deeply
tied In with the conditions in all Of
the other nations of the world. In
other words, We can get, in all proba-
bility, a fair measurs of prosperity re-
turn In the United States, So: 1t will
not be permanent unless we get d
return to prosperity all over the world.
In the conferences which we have
held and are holding with the leaders
| of other nations, we are seeking four
great objectives. First, q general re-
| duction of armaments and through this
the removal of the fear of invasion and
armed attack, and, at the same time, a
reduction in armament costs, in order
to help in the balancing Of govern
ment budgets and the reduction Of taxa
ton. Secondly, a cutting down of the
trade barriers, in order to restart the
flow Of exchange Of crops and goods
| between nations Third the setting I'm