Evening star., 1933-05-08
text Of President Roosevelt's
/ talk last night at the White
House follows:

TINE text Of President Roosevelt's
talk last night at the White
House follows:
"On . Sunday night . week
after my Inauguration used the
radio to tell you about the banking
crisis and the measures we were taking
to meet 1t. I think that in that way
I made clear to the country various
facts that might otherwise have been
misunderstood and IN general provided
q means OF understanding which did
much to restore confidence.
Tonight. eight weeks later, come
for the second time to give you my re-
port-in the same spirit and by the
same means to tell you about what we
have been doing and what we are plan
ming to do.
1.-TWO months ago we were facing
serious problems. The country was dy-
ing by inches. It was dying because
trade and commerce had declined to
dangerously low levels; prices for basic
commodities were such as to destroy the
value Of the assets Of national tnstitu-
tions such as banks, savings banks in
surance companies and others. These
institutions, because Of their great
needs, were foreclosing mortgages. call
ing loans, refusing credit. Thus there
was actually in process Of destruction
the property of millions Of people who
had borrowed money on that property
in terms of dollars which had had an
entirely different value from the level
of March, 1893. That situation in that
crisis did not call for any complicated
consideration Of economic panaceas or
fancy plans. We were faced by con-
dition and not theory.
Only Two Alternatives.
"There were just two alternatives:
The first was to allow the foreclosures
to continue, credit to be withheld and
money to go into hiding. and thus Fore
ing liquidation and bankruptcy OF
banks, railroads and insurance COM
panies and recapitalization of
all business and all property on lower
level. This alternative meant con-
tinuation of what is loosely called de
flation,' the net result Of which would
nave been extraordinary hardship on all
property owners, and, incidentally, ex-
tradordinary hardships on all persons
working for wages through an increase
in unemployment and further reouc-
ton of the wage scale.
1T is easy to see that the result OF
this course would have not only eco
.
ture, but social results that might bring
incalcuable harm. Even before ! was
inaugurated I came to the conclusion
that such q policy was too much 70
ask the American people to bear. II
involved not only a further loss OF
homes, farms, savings and wages, nut
also a loss of spiritual values-the loss
of that sense of security for the present
and the future so necessary to the
peace and contentment Of the indi-
vidual and of his family. When you
destroy these things you will fnd 1t
difficult to establish confidence OF any
sort in the future. 1t was clear that
mere appeals from Washington for con-
fidence and the mere lending OF more
money to shaky institutions could not
stop this downward course.
"A prompt program applied as quick
ly as possible seemed to me not only
justified, but imperative, to our national
security. The Congress-and when
saw Congress, I mean the members OF
both political parties-fully understand
this and gave me generous and intelll-
gent support. The members OF Con-
gress realized that the methods OF nor
NAL times had to be replaced In the
emergency by measures which were
suited to the serious and pressing re-
quirements Of the moment. There was
no actual surrender of power. Con-
gress still retained its constitutional au-
thority and no one has the slightest
desire to change the balance Of these
powers. The function Of Congress Is to
decide what has to be done and to
select the appropriate agency to carry
out its will. This policy it has strictly
adhered to. The only thing that mas
been happening has been to designate
the President as the agency to carry
out certain of the purposes Of the Con-
gress. This was constitutional and in
keeping with the past American traoi-
ton.
Well Grounded Plan.
"The legislation which has been
passed or in the process OF enactment
can properly be considered as part OF
a we'll grounded plan. .
First, we are giving opportunity OF
EMPLOYMENT to one-quarter OF million
of the unemployed. especially the young
men who have dependents. to go into
the forestry and flood prevention work.
This is q big task, because 1t means
feeding, cloth and caring for nearly
twice as many men as we have IN the
Regular Army itself. In creating this
civilian conservation corps we are kaan,s n,..
two birds with one stone. We are clearly
enhancing the value of our natural re-
sources, and, second. we are relieving an
appreciable amount of actual distress:
This great group of men have entered
upon their work on a purely voluntary
basis. no military training Is involved
and we are conserving not only our nat
ural resources, but .our human re-
sources. One Of the great values to
this work is the fact that 1t Is direct
and requires the intervention OF very
little machinery.
Second, I have requested the Con-
gress and have secured action upon a
proposal to put the great properties
owned by our Government at Muscle
Shoals to work after long years Of
wasteful inaction, and with this broad
plan for the improvement Of vast area
in the Tennessee Valley. 1t will add to
the comfort and happiness Of hundreds
of thousands of people and the incident
benefits will reach the entire Nation.
Next, the Congress is about to pass
legislation that will greatly ease the
mortgage distress among the farmers
and the home owners of the nation. by
providing for the easing of the burden
CT debt now bearing so heavily upon
millions of our people.