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No. 51 "The People's Money" Speech of Dr. Walter E. Spahr, Professor of Economics, New York University, July 10, 1935. American Liberty League. 400dpi TIFF G4 page images Digital Library Services, University of Kentucky Libraries Lexington, Kentucky Am_Lib_Leag_51 These pages may freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. No. 51 "The People's Money" Speech of Dr. Walter E. Spahr, Professor of Economics, New York University, July 10, 1935. American Liberty League. American Liberty League. Washington, D.C. 1935. This electronic text file was created by Optical Character Recognition (OCR). No corrections have been made to the OCR-ed text and no editing has been done to the content of the original document. Encoding has been done through an automated process using the recommendations for Level 1 of the TEI in Libraries Guidelines. Digital page images are linked to the text file. Pamphlets Available â˜… Copies of the following pamphlets and other League literature may be obtained upon application to the League's national headquarters: Statement of Principles and Purposes American Liberty League Its Platform An Analysis of the President's Budget Message Analysis of the $4,880,000,000 Emergency Relief Appropriation Act Economic Security The Bonus Inflation The Thirty Hour Week The Pending Banking Bill The Holding Company Bill "What is the Constitution Between Friends?** Speech by James M. Beck Where Are We Going? Speech by James W. Wadsworth Price Control Yesterday, Today and Tomorrow The Labor Relations Bill How Inflation Affects the Average Family Speech by Dr. Ray Bert Westerfield The AAA Amendments Political Banking Speech by Dr. Walter E. The Bituminous Coal Bill Regimenting the Farmers Speech by Dr. G. W. Dyer Extension of the NRA Human Rights and the Constitution Speech by R. E. Desvernine The Farmers* Home Bill The TVA Amendments The New Deal, Its Unsound Theories and Irreconcilable Policies Speech by Ralph M. Shaw Is the Constitution for Sale? Speech by Capt. William H. Stayton How to Meet the Issue Speech by William E. Borah The Supreme Court and the New Deal The Duty of the Church to the Social Order Speech by S. Wells Utley An Open Letter to the President By Dr. Neil Carothers The Revised AAA Amendments The Return to Democracy Speech by Jouett Shouse The President's Tax Program The American Bar The Trustee of American Institutions Speech by Albert C. Ritchie Fabian Socialism in the New Deal Speech by Demarest Lloyd â˜… AMERICAN LIBERTY LEAGUE NATIONAL PRESS BUILDING WASHINGTON, D. C. â˜… â˜… The People's Money â˜… â˜… * Speech of DR. WALTER E. SPAHR Professor of Economics, New York University, and Member of the National Advisory Council of the American Liberty League in Round Table Discussion of "The Constitution and the New Deal" Institute of Public Affairs University of Virginia July 10, 1935 AMERICAN LIBERTY LEAGUE National Headquarters NATIONAL PRESS BUILDING WASHINGTON, D. C. â˜… â˜… Document No. 51 The People's Money ThE monetary issues before this country today must be analyzed and interpreted in the light of the current opinions as to the causes of the depression and as to the proper road to business recovery. These opinions fall into three general classes. There are those who contend that the capitalistic system has failed very badly or has collapsed. There are those who hold our money and banking systems chiefly responsible for the depression. Such people are commonly alluded to as the money tinkerers. Then there is the third class which insists that the World War and the consequent maladjustments which it engendered caused the depression. This third point of view is undoubtedly the correct one and is held by the great majority of reputable economists and authorities on business cycles and money. In the first two classes are found the popularly called money meddlers and those radicals who are trying to revolutionize our economic system and government. Practically every important feature of the present national government's program relating to the depression and recovery falls into these first two classes. Since the money tinkerers and radicals are temporarily in the saddle, and since the economic and governmental programs of these two classes are so closely interwoven, the major portion of the analysis relating to current monetary issues must concern itself with the major contentions of those who subscribe to one or both of the first two classes of opinions. It is peculiarly appropriate, therefore, that the particular topic, "The People's Money," should be placed under the general topic of "The Constitution and the New Deal." Those who hold the World War, and the postwar maladjustments directly attributable to it, responsible for the depression, and who, as a consequence, propose a program of recovery logically deduced from such a belief, are supported by the facts in the case. But today such people are left sitting on the side lines in so far as participation in the formulation of a national recovery program is concerned. For this reason their contentions and position may be disposed of rather summarily for the moment, despite the fact that there is good reason to believe that the day is not far distant when they will be restored to positions of prestige and influence. It is the firm belief of this class of economists, statesmen, and business men that the World War, involving widespread destruction of life and property, and abnormal readjustments in the major economic activities of people, led to an aftermath of maladjustments marked by overwhelming debt burdens; distorted production, trade, distribution, and consumption; increasing unemployment; artificial bolstering of shaky institutions by governments; extremely uneconomic nationalistic devices involving a multitude of regulations of, and interferences with, foreign trade and exchange; unsound attempts to manage surpluses in certain fields of production; abnormal and unwise buying on the installment plan; excessive speculation; inflation; wrecked banking and currency systems; and, finally, the depressions of the various nations, and even political revolutions. Considering that practically all our great institutions and productive, exchange, and consumptive activities were artificially and seriously distorted in this manner, it should have been rational to expect painful readjustments afterwards. But people have not shown a particularly rational attitude toward these necessary readjustments. They have assumed that they could engage in a mad orgy like the World War and yet pay no penalties nor face any unpleasant aftermath. Those experiencing unusual prosperity during the War naturally wished their prosperous condition perpetuated after the War. Governments, obsessed with the same notions, set about doing all they could to ac- commodate their citizens in this respect. The result was the prolongation and accentuation of existing maladjustments, and the creation of new ones. Finally, the rotten underpinnings bolstering up this artificial and grotesque aftermath of war gave way and collapsed. Thus the conclusion is reached that our depression was not caused by inherent defects of capitalism or by fundamental flaws in our currency and banking systems. For similar reasons, the conclusion is reached that the road to a sound business recovery does not lie along the way of revolutionary changes in our capitalistic or governmental system or in currency tinkering. Rather, it is held that recovery comes about and is fostered by governments when the more orthodox and tested principles of economics are recognized and applied. These principles will be stated in a summary manner at the end of this paper. Those persons who think they see in the defects or so-called "collapse" of capitalism the explanation of this depression and the suggestion of the proper road to recovery overlook the fact that the depression has been practically world-wide and no respecter of particular forms of government or of types of economic systems. They clearly overlook the fundamental virtues of capitalism and of its adaptability to the innate characteristics, needs, and creative activities of human beings. They forget that this system has given our people an average level of living exceeding that of any other important nation of the world. In their criticisms of capitalism they appear to forget that its inherent defects are largely due to defects inherent in human beings. They do not face the fact that for a large nation capitalism has thus far revealed more virtues than any other system yet devised. These persons clearly hold it responsible for conditions which are, in fact, due to the World War. Capitalism and democracy, as such, did not cause this depression, and it is not necessary to destroy or even remodel them in order to obtain a sound business recovery and more wholesome economic conditions. Because of the fact that the radicals and money tinkerers now dominate the economic and governmental programs of this country, the people of this nation have found themselves caught up in what is proving to be a bitter struggle between two major groups of conflicting forces. On the one side are the forces generated and unleashed by what we now know is a Socialist-Democratic Party the party of the New Deal. On the other side are those forces working for sound economic recovery and readjustment in accordance with the tested principles of economics which have operated in a nation of democratic institutions and of a free people. To the thoughtful people of this country, who are earnestly taking stock of this state of affairs, the situation has extremely serious aspects. It would appear that, at the moment, the forces of socialism, released and fostered by our new and unheralded Socialist-Democratic Party, are, or at least have been, pushing back the forces of sound economics, of true democracy, of individual liberty, of freedom of enterprise, of customary and constitutional rights in private property, of respect for the obligations of contract, and of constitutional republican government. Many people even fear that the sun may be setting on those institutions which have made this nation great, which have given our people the highest average level of living yet attained by the people of any nation, and which have fostered individual freedom and enterprise and national progress until we could truthfully say that we were, according to materialistic standards, the greatest nation in the world. We KNOW that the various peoples of the world have struggled for centuries to obtain the degree of freedom from imposed authority which we finally attained, and we also know that this nation was established for the specific purpose, above all others, of enabling our people, in the stimulating atmosphere of such freedom, to climb by their individual and ingenious efforts to any heights to which human beings might reasonably aspire. We have seen, over a period of a hundred and fifty years the great benefits flowing from the cultivation of these institutions of freedom, individual liberty, private property, and contract under a republican form of government. We have seen the standards of living and the general welfare advanced beyond those of any other nation through the operation of economic laws and principles which, when permitted to function by an enlightened republican form of government, have contributed to the attainment of many of these desired ends. It would seem that all must concede that these developments have pointed in the proper direction, for, after all on the subject has been said, and after all philosophies of life have been examined, one must conclude that the ultimate end of all human beings is to find opportunity to develop their intellectual capacities and individual personalities to the highest point of which they are capable. Respect for the sacred-ness of an individual's personality and of his right to develop it to the limit of his capacity is certainly one of the most fundamental premises in any enlightened social order. It was to permit our people to attain these ends that this nation attempted to develop its fundamental and characteristically enlightened democratic institutions; and, by all rational standards, the results have confirmed the wisdom of the attempt. But, because the world went mad and engaged in a well-nigh universal war involving the destruction of life, property, and institutions, which, in time, led to an aftermath of chaos, many have supposed that the great institutions, for the cultivation of which this nation was founded, have failed and must be thrown inta the discard. Stated in the simplest terms, those who would destroy the fundamental institutions of this country to solve the problems of this depression are those who, in the main, have failed to understand the nature and meaning of the readjustments which the insane orgies of the World War, of necessity, demanded. The trouble today is not with the character of our fundamental institutions which are being blamed, attacked, and undermined so vigorously by the Socialist-Democrats. On the contrary, it can be traced in practically every case to the action of those governments which led their people into the World War; to the undue interference of governments with the normal functioning of those great institutions associated with the development of individual liberty and enterprise; and to the attempts of governments to meddle with the operation of those economic laws and principles which have made possible the attainment of progressively higher standards of living by the people of the most advanced nations of the world. Considering the nature of the so-called recovery measures of the government at Washington, it seems quite clear that the Administration has failed to understand the fundamental causes of the business collapse in this country, and that it has been almost totally blind as to the nature of the methods by which a country recovers from a depression. Symptoms have been mistaken for causes, and, for this reason as well as for others, the forces which normally generate recovery have been and are being hampered, or subjugated, or destroyed by those agents which appear to be working toward a political, economic, and social revolution. The fact that the major features of the economic and political programs of the party in power are, to a large degree, based upon the capitalization of discontent and human suffering has created a most unusual state of affairs in this country. All thoughtful people know that there is an unprecedented amount of misery and discontent in this nation. There is good reason for it; the depression has been the most severe in our history; and this has been because the world engaged in the most devastating war of history. Thoughtful people also know that it is easier to be discontented than it is to think clearly. But when a political party in power is willing to take advantage of unintelligent discontent and to utilize it for the advancement or perpetuation of its own interests, then a truly dangerous state of affairs has been created. When the people of a nation must rely for good government upon the responsiveness of their elected representatives to the most intelligent, rather than to the least intelligent, elements in the voting population, a reversal of this principle is certain to fill our thoughtful and intelligent citizens with a feeling of gravest concern for the welfare of the people of this nation. The thing needed and desired by thoughtful people today is a sound business recovery, after which it is hoped the desired and necessary reforms would be worked out carefully and deliberately so that their success may be assured, and so that the customary evolutionary processes may not be replaced by the more dangerous and less reliable revolutionary ones. Without recovery, desirable reforms can never be effective; therefore, recovery must be the first and fundamental consideration. TilE position of the money tinkerers with respect to the depression and recovery is more easily understood in the sense that the money meddlers appear in every depression. Indeed, every severe business recession brings them out just as gophers are brought out of their holes by a flood. In such times it is an easy matter for the untutored in monetary affairs to link their distress illogieally with the currency supply. The fact that they have less money during the depression and had more in times of prosperity leads many to the conclusion that something must be wrong with the monetary system. They fail to realize that the supply of currency is small because business is stagnant, and that the supply expands when business expands. They forget that the supply of currency, unless it be inflated, is, in the main, a thermometer of business activity. People are rational enough when they consult their thermometers regarding the temperature. They know the mercury is low because it is cold; they do not suppose that the low mercury caused the cold. They become quite irrational, however, when the monetary mercury is low and assume that it caused the depression. They also assume that recovery can be generated if they increase artificially the currency supply. It would be just as rational to expect the temperature to rise when a match is held under the mercury bulb. This might wreck the thermometer, but it certainly could not increase the temperature. Applying the inflationary match to the money thermometer might wreck the thermometer, but it certainly would not generate a sound business recovery. The consequence of this confusion is that multitudes lose their perspective as to causes of their trouble and fail to see the rational road to recovery. But this depression differs from preceding ones not only in the fact that it is the most severe ever experienced by the people of this country but also in the fact that it has been characterized by the most determined and successful effort to tinker with our currency ever observed in our history. This is doubtless due to the fact that never before has a Federal Administration aided and abetted currency tinkering as a means of alleviating suffering in a depression and of fostering business recovery. The consequence of the attitude of the present government has been that the money tinkerers, from every corner of the nation, have converged upon the White House. And there they have received a genial reception. They have been made official advisers on monetary matters. With an overwhelming majority of Congress cranio posed of radicals, or money tinkerers, or both, a series of wild-money bills were drafted, passed, and signed by the President. The inflationists, devaluationists, and silverites have all had their fling, and the President has signed every biU passed by them except the Patman bonus bill. But they are not yet satisfied. From one end of the country to the other the money tinkerers are still busy. Monetary demagoguery has been and is in full flower. It SHOULD be an arresting fact that not one of these demagogic leaders is ever a well trained person in monetary affairs. Demagogues invariably spring from dark corners. They are invariably what has been aptly called "rabble rousers." Although blind regarding the monetary matters, they nevertheless presume to lead the blind. They strut and fume and inflame. They stir up class hatred. They promise the unattainable. They become drunk with their own words and emotions. They imagine great powers are in their grasp. They see a great following and begin to believe that some unseen power has selected them to lead the people to salvation. They whip themselves and their followers into a frenzy of emotion. Ignorance, ambition, hope, a crusading zeal for reform, egotism, spite, hate, quackery, and hypocrisy all combine to give these depression outbursts for monetary tinkering the tone and characteristics of which all thoughtful people are aware. In time these radical movements die down; their leaders burn themselves out, and their fallacies, follies, and foolishness are exposed. The return of prosperity invariably destroys such movements and their leaders. When people see prosperity returning without the use of the monetary schemes of these demagogues, they lose faith and interest in both the schemers and their schemes. With increased employment and income, people find themselves too busy and too comfortable to bother further with fantastic monetary panaceas. Thus, such movements die 11 out. The solution, therefore, lies in doing everything in our power to aid recovery and to prevent the adoption of wild-money schemes before recovery can take place. Observing this unusually dangerous trend toward currency tinkering in this country, ninety-five of the leading monetary economists of this nation formed, in November, 1933, the Economists' National Committee on Monetary Policy for the purpose of doing everything possible to inform the country as to the dangers of these wild monetary proposals, to prevent their enactment into law if possible, and to suggest constructive measures. This Committee was not only anxious to place its accumulated knowledge at the disposal of the country but it had hoped that it might be of real service to the government in times like these. The Administration, however, has not welcomed its advice and recommendations, and has ignored it on practically every major point relating to monetary questions. Instead of profiting by such expert advice, this Administration has chosen to surround itself with monetary advisers of an exceedingly unorthodox sort in most instances men of no standing or reputation or experience whatever in the field of monetary affairs. The consequence has been an orgy of wild and fantastic monetary legislation which has been the laughing stock of the leading monetary authorities of the world. One of the chief contentions of the monetary tinkerers has been that this nation has suffered because of a scarcity of currency, and that if the supply were increased by some artificial means prices would rise and a sound recovery would be generated. This contention, supported by the inflationists, devaluationists, and silverites, is false. The currency expansionists confused the cause and effect relationship between productive activity and prices on the one hand and the currency supply on the other. They placed the cart before the horse. They ignored completely the statistical records as to the huge currency supply and excessive bank reserves at the time 12 they were publicly proclaiming a scarcity of both. Such a distortion of facts characterizes the tactics of the money tinkerers in every depression, but at no time have the facts been ignored or distorted more flagrantly than during the present depression. ANOTHER of the most outstanding fallacies of the monetary tinkerers, in their efforts to raise prices, is seen in their failure to appreciate the elementary truth that there are two kinds of rising prices. One is sound, the other is unsound. Each is characterized by different causal factors, by different human reactions, and by different economic consequences. The causal factors differ in the fact that a sound rise in prices is caused by the increased activities of producers; the unsound rise in prices is caused by currency inflation. The reactions of people differ in the fact that a sound rise in prices generates widespread confidence because it rests upon increased income growing out of increased productive activity and increased employment; the unsound rise in prices generates fear because the currency supply is increased without there being any increase in production, in employment, in wages, or in income. The fear is of the devastating effects of a depreciating currency. The economic consequences differ in the fact that a sound rise in prices can continue until a state of general economic equilibrium is reached between production and demand and a condition of widespread prosperity prevails. The unsound rise in prices, caused by currency inflation, never culminates in a state of economic equilibrium or in general prosperity. It always ends in disaster, and this may assume any one of three forms: (1) there will be a collapse in prices if inflation is halted at any point; (2) there will be a general destruction of values and impoverishment of the people if inflation is carried to the bitter end and the currency repudiated as in Germany, for instance; and (3) inflation must be followed by devaluation if a 13 collapse or repudiation is to be avoided, and, in this instance, the disasters and suffering are determined by the degree of devaluation. The contentions of those who advocate an artificial rise in the price level by currency inflation are false on every major count. Outside of war, human beings probably have never devised an instrument more destructive of human welfare than currency inflation. Those who urge that the price level should be forced up to that of 1926 in order to equalize debt burdens can marshal no sound arguments in defense of their thesis. This is inflation, although the advocates of such a scheme have called it reflation in order to fool the uncritical public. There are no sound arguments known for forcing artificially a rise in the price level, regardless of purpose. And there is no valid argument known for contending that we should return to the price level of 1926. After a country has passed through a depression, there is no human being who has any possible way of knowing when or at what level the next equilibrium price level will be reached. Furthermore, the debtor-creditor argument is unsound because debtors cannot be separated clearly from creditors; because debtors can pay their debts more easily only if they can obtain more income more easily, and this is something that inflation does not insure; because inflation impoverishes the mass of people; because the inflated currency does not climb into the pockets of worthy debtors and avoid the unworthy creditors; and because debtors and creditors cannot be dealt with in general with the expectation of insuring justice. The interest of justice as between debtors and creditors can be served best, and then only approximately, when individual debtors and creditors adjust their differences on some basis mutually satisfactory, considering the necessities of the moment. A generalized device, such as currency inflation, can never insure even approximate justice as between debtors and creditors. 14 The arguments of the devaluationists have been demonstrated to be false in every important respect. There was no scarcity of gold as the devaluationists insisted, and there is no known or predictable relationship between a given amount of devaluation and its effect on the price level. Devaluation was inexcusable as a recovery device in this country, and had the government not led the public to expect it, and had foreign exchange rates, as a consequence, not become adjusted to these expectations, devaluation would never have been necessary. TilE silver agitators have never been able to offer anything but specious arguments in behalf of their schemes to do something for silver. They have, nevertheless, been able to dilute our currency supply with an increased amount of silver which will place an additional load on the gold supply when the nation returns to a gold standard. Title II of the Banking Bill of 1935, as passed by the House the so-called Eccles bill involves some of the same fundamental fallacies as to the relation between the currency supply and a sound recovery, and, for this reason among others, has been subject to severe criticism and condemnation by outstanding money and banking authorities. Finally, those who blame our monetary system for the depression forget that the depression was no respecter of monetary systems. AH types were carried down in the crash. Most of the proposals for changing our currency system have provided either for a devaluated metallic monetary standard, or for an inflated paper standard, or for more silver in our currency. Wherever such systems were found the depression carried them down; and none fell farther nor caused more disaster than the inflated paper money systems now so highly recommended by the inflationists. Neither this depression nor a sound business recovery is a monetary phenom-15 enon in the sense generally supposed by the money meddlers. The currency tinkerers are a misguided lot and have been on the wrong track. They have done great damage and much more may be done before a better informed government can repeal the unsound and dangerous monetary laws now cluttering up our statute books. People must learn that trade, recovery, and prosperity grow and expand upon a sound currency, not upon an unsound one. Monetary tinkering of the type experienced by this country must be appraised with the proper perspective. It is a disease of depressions. The germs attack the monetary demagogues who, in turn, prey upon and inject the virus into the suffering and untutored masses. It is not a disease that those untrained in monetary matters ever understand. It is the province of experienced monetary doctors, just as certain human diseases are the provinces of experienced physicians. The "People's Money" is not something for the inexperienced or for the untrained to manipulate. The "People's Money" can be a good money and serve them well only when properly informed and experienced experts protect it and maintain it soundly for the people who use it and yet have little understanding as to its true nature and functions. It is a difficult task, indeed, to make the general public realize this simple truth. It is also a slow and difficult task for a relatively small group to swing a country back to the fundamental principles of sound currency and sound recovery when millions of people, totally untrained in monetary matters, are being swayed by the monetary demagogues in and out of Congress. Nevertheless, the battle must be carried on until recovery dispels the disease from the minds of people. SlNCE the road to a sound recovery is not to be found in currency tinkering, it is especially 16 appropriate that the proper way be pointed out Summarized briefly, it is as follows: (1) Both the government and the people must accept the fact that the road to recovery, prosperity, and general well-being is to be found by both individuals and their government in harder work, not less; in longer hours of labor, not shorter; in relatively low pay temporarily, not higher; in greater economy and saving, not less; and in greater production, not less. There is no easy road to recovery. There is no way in which the people in general can spend or borrow their way into a sound recovery. There is no way by which the people in general can get something for nothing. (2) The government must cooperate with business men, remove every obstacle possible from their paths, and substitute rational and general regulation in constitutional form for the present arbitrary and repressive policies now retarding recovery and destroying confidence. (3) The government should remove itself in every way possible from business activities. It is not the function of a constitutional republican government in this nation to compete with its citizens in their efforts to make a living. (4) Constitutional government and government by law, rather than by men, must be restored. The bureaucracies should be dismantled, and the appropriate functions of government should be returned to the Cabinet officers and to a few permanently established bureaus and commissions. (5) State sovereignty must be respected and guaranteed. (6) We must be given a sound currency. Business thrives upon a sound currency, not upon an unsound one. A sound currency restores confidence. To obtain it we must return to a gold standard, eliminate the inflationary and other unsound features of our currency, and cooperate with other countries in obtaining international currency stabilization. (7) Expenses must be cut down and the budget balanced. (8) Our Federal Reserve System must be made an effective and independent central banking system. A National Commission of experts should be appointed to devise a 17 plan which will give this country the type of independent system it should have. Such a banking system should be independent of the political party in power, of domination By bankers, of pressure from any group. Its purposes should be to serve the interests of the entire country. (9) Such restrictive devices as the A.A.A. should be removed from the backs of business men and farmers, and abolished. The agricultural program of the government should be made to conform to the following principles of agricultural economics: (a) the government should employ every possible device to open trade channels, both domestic and foreign, not only in the interests of agriculture, but in the interests of all classes in this nation, and it should simplify marketing procedure for agricultural products; (b) the Department of Agriculture should aid the farmers in diversification of their productive activities, it should warn them as to world supply and demand, and it should not force farmers into any particular line of production; (c) there must be a shift from agriculture to more productive activities; and (d) the farmers' tax burdens should be adjusted. This is the simple economics of the farm problem, and the execution of a governmental program embodying these principles requires patience and time on the part of a wise and far-sighted government. In the long run the substantial farmers of this country probably will welcome nothing S else, and no government can have success for long with any other agricultural program. i (10) Finally, the government should give the people of this nation a rest and respite from the high-pressure and driving legislation to which it has been subjected since 1933. The nation needs a breathing spell and a rest. It needs the time to consolidate its gains and to get its bearings. If this is not done, the Administration may lose the support which it might otherwise have had for the meritorious measures which deserve it. At the present moment, however, we cannot feel assured that the Administration intends that recovery shall return. Or, if the Administration is truly seeking recovery, we cannot feel assured that the methods being employed will not prevent it or that they will not lead in the near future to economic, social, and political chaos. Although the keynote of this Administration's policies has been a professed desire to aid the unemployed and unfortunate, the actual programs have tended to prevent the improvement in business which is a necessary prelude to improving the condition of the unemployed and unfortunate. Wishful thinking and loud public professions of a consuming interest in the welfare of the masses are one thing; but a sound economic program, which will actually improve the general condition of our people, is quite another. There is also the possibility even though, it may be improbable that business can recover in the face of the handicaps with which it is now confronted, that present government policies may be modified, and that we may emerge from our present troubles and fears as from a bad dream. But regardless of what the outcome of these issues ultimately proves to be, it would seem that prudent men and women cannot afford to ignore the most serious aspects of the questions with which we are, and may be, confronted. They transcend in importance all questions of political allegiance. They challenge our best thought and the best in our character. They demand that we mentally resolve, come what may, to protect and defend our families, our country, and its people from those who prove to be their enemies. If THESE steps were taken a sound recovery would soon be on the way, and a general and widespread prosperity would soon be with us.