1937 Conservative Manifesto

A sudden and extensive recession in business, industry, employment, prices, and values demands instant attention of all in positions of responsibility. To arrest it, to reverse it, and to avert its consequences is the common task. In this as Senators we have a duty, and in partial discharge of it we have determined upon this statement.

We have now not only the problem of caring for the unemployed, pending opportunity for their employment, but also the task of preventing many now employed from losing their jobs.

We believe that a policy of cooperation by all concerned upon sound lines will suffice to set the country as a whole on its accustomed way toward higher ground. This cooperation is the objective of this address to the American people. This is no time for alarm or pessimism. We have come to the inevitable period of transition, and fortunately the underlying conditions are favorable.

We are concerned now only with our duty in view of the conditions that confront us, in order that full activity of employment and commerce may be had. To avoid controversy and make for unity, we may dispense with appraisals of policies or arguments. The past is experience and is of value only for its lessons. We propose no criticism, no politics.

A CURB URGED ON SPENDING PUBLIC FUNDS

We consider that the time has come when liberal investment of private savings in enterprise as a means of employment must be depended upon and, without delay, heartily encouraged by the public policy and all Americans. Public spending, invoked in the recent emergency, was recognized as a cushion rather than as a substitute for the investment of savings by the people. To this latter all have looked at length. We believe that an encouraging public policy will ensue quickly in expanding enterprise, in active business, in widespread employment, and in abundant demand for farm products.

Without criticism of the public spending policy attendant upon the former emergency, we recognize that a repetition of that policy would not serve again, and, moreover, is out of the question. It ought to be borne in mind that private enterprise, properly fostered, carries the indispensable element of vigor. The present unemployed and employed, and the young men and women about to enter upon careers, rightly desire and must have the opportunity which is afforded only by private enterprise. The President recently informed the Congress of the instant and obvious task of inducing the investment of private funds. We perceive, as does he, the necessity for the transition, gradual to be sure, but distinct. And we propose to do our part to accomplish this objective in full cooperation.

In order to do this we recognize that the public policy must conform to certain paramount principles and objectives, and without undertaking to specify all we submit the following as essential at this time:

1. The capital-gains tax and the undistributed-profits tax ought thoroughly to be revised at once, without reducing revenue, so as to free funds for investment and promote the normal flow of savings into profitable and productive use, not for the sake of capital but for the consequences in expanding business, larger employment, and a more active consumer demand for goods.

BUDGET MUST BE BROUGHT INTO BALANCE

2. Steady approach must be made toward a balance of the public revenue with the public expenditure, a balanced National Budget, and an end of those fears which deter investment.

The public credit must be preserved or nothing else matters. To undermine it is to defeat recovery, to destroy the people upon inflationary high living costs, and particularly to ruin those of our people who are on relief. There is nothing but a sound public credit between them and disaster, because they have no other reliance for their subsistence.

This means reduced public expenditure at every point practicable. We must have certainty of taxation and stability of the currency and of credit. Before increasing taxes or broadening the base we would exhaust the resources of an intelligent application of economy. We intend that a consistent progress toward a balanced Budget shall be made-so consistent that none may question the consummation in due season. It must be a paramount objective, since it underlies certainty, stability, and confidence.

3. We propose just relations between capital and labor, and we seek an end at once of a friction, engendered by more favorable conditions, that now serves none, but injures all. We advise that government take a hand only as a last resort; and that if it must, that it shall be impartial. We insist upon the constitutional guaranties of the rights of person and of property-the right of the worker to work, of the owner to possession, and of every man to enjoy in peace the fruits of his labor.

The maintenance of law and order is fundamental. It does labor no good to obtain new benefits if an orderly society in which to enjoy them is destroyed. Coercion and violence in labor relationships must stop, no matter by whom employed. Enlightened capital must deal with labor in the light of a new conception of legitimate collective bargaining and the right to organize. Enlightened labor must deal with capital in a due appreciation of mutual responsibilities for the success of enterprise indispensable to both.

GOVERNMENT COMPETITION IS HARMFUL

4. Relying upon the profitable investment of private savings in enterprise, we oppose every Government policy tending unnecessarily to compete with and so to discourage such investment. If the Government proposes to compete in any field, due notice ought to be given in order that private investment may avoid it. For the Government and private investment cannot occupy the same field.

We favor the principle recently suggested from the White House to the end that private funds on the basis of fair return upon prudent investment may be made available without delay.

We urge that the railroads shall enjoy an income appropriate to prudent investment value.

We favor also a constructive and encouraging attitude toward all legitimate institutions operating to assist the flow of funds into investment-with the view to a broad credit at low rates.

We favor the encouragement of housing construction, recognizing that this is also one of the larger fields for investment of private funds in durable goods-precisely the instant need.

5. We recognize that the value of investment, and the circulation of money, depends upon reasonable profit, not only to protect the investment and assure confidence but also to provide increasing employment and consumption of goods from farm and factory. We favor the competitive system as against either private or Government monopoly, as preventing unreasonable profit and demanding vigor of enterprise. Our American competitive system is superior to any form of the collectivist program. We intend to preserve and foster it as the means of employment, of livelihood, and of maintaining our standard of living.

6. The sources of credit are abundant, but credit depends upon security-the soundness and stability of values; and these are governed by the profitable operation of the concerns in which stocks are certificates of interest or in which bonds are evidences of debt. If, therefore, the reservoirs of credit are to be tapped, we must assure a policy making for the sense of the safety of the collateral which is the basis of credit.

ASSURANCE IS NEEDED OF NO HIGHER TAXES

7. The spread between the prices paid farmers and the prices paid by consumers for their products is notorious. One explanation of the difference is the fact that the amount of annual taxes, Federal, State, and local, comes to at least one-fourth of the national income. It is the price of the consumer, with the burden of taxes therein, which accounts for consumer resistance, depresses demand for goods, and tends to pile up unmarketable surpluses. There ought to be reduction in the tax burden, and if this is impossible at the moment, firm assurance of no further increase ought to be given.

8. In a country so large and so complex as ours, it is always difficult to fix uniform national standards for universal application in respect to the lives and livelihoods of our people. Except where State and local control are proven definitely inadequate, we favor the vigorous maintenance of States’ rights, home rule, and local self-government. Otherwise we shall create more problems than we solve.

9. We propose that there shall be no suffering for food, fuel, clothing, and shelter; and that pending the contemplated revival of industry, useful work shall be provided to an extent consistent with the principles of this address. The deserving must be provided for when and if their resources of energy, skill, or funds cease to avail. To be done well, this must be done economically, with the view to encouraging individual self-reliance, the return to self-dependence at the first opportunity, the natural impulses of kinship and benevolence, local responsibility in county, city, and State, and without the slightest catering to political favor. The administration of relief ought to be nonpolitical and nonpartisan and temporary.

We hold to the conviction that private investment and personal initiative, properly encouraged, will provide opportunity for all who are capable, and we propose employment for all who are capable as the goal of our efforts to justify the investment of savings in productive enterprise.

10. We propose to preserve and rely upon the American system of private enterprise and initiative, and our American form of government. It is not necessary to claim perfection for them. On the record they are far superior to and infinitely to be preferred to any other so far devised. They carry the priceless content of liberty and the dignity of man. They carry spiritual values of infinite import, and which constitute the source of the American spirit. We call upon all Americans to renew their faith in them and press an invincible demand in their behalf.

SAFEGUARDING LIBERTY AND SELF-RELIANCE

We can and will erect appropriate safeguards under the common-law principles of free men without surrendering in any degree the vital principles and self-reliant spirit on which we must depend.

Our economic system must be such as to stimulate ambition, afford opportunity, and excite in each boy and girl a sense of responsibility to produce to his capacity.

Through individual self-reliance and service only can abundance, security, and happiness be attained.

Pledging ourselves to uphold these principles, we summon our fellow citizens, without regard to party, to join with us in advancing them as the only hope of permanent recovery, and further progress. They will serve to take us safely through the period of transition now suddenly thrust upon us as they have taken us through every emergency. They will not fail us, if we adhere to them. But if we shall abandon them, the consequences will far outweigh in penalty the sacrifices we may make to our faith in them.

The heart of the American people is sound. They have met every emergency and demand. We will meet those of today, and so hand down to our children our most precious heritage enhanced by a new and major trophy of free institutions. Let us not be dismayed, but press on in the great liberal tradition and in its spirit of courageous self-reliance which has won through all the vicissitudes of a great period, and has made our country the strongest, the most progressive, and the best of nations.