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We advocate balancing the budget by continuing to restore the incomes of the American people.
We oppose deflationary methods of balancing the budget which were
tried by the last Republican Administration with disastrous consequences
to business and employment and at a frightful price in human privation
and misery. §y restoring the incomes of the people, the Democratic Administration has restored the only sound and sure means of balancing
the budget and of reducing the Federal debt as the income of the nation
continues to increase.
The desperate state of financial collapse, business paralysis and
moral bewilderment in which the Roosevelt Administration found the
country in March of 1935 left but one sensible and humane course to follow. We applaud the resolute and vigorous manner and the humanitarian
spirit in y/hich our President met the grave emergency. The life-giving
power of the Federal credit was drawn upon to reopen and rehabilitate the
banks, to save farms and homes from the fate of foreclosure, to feed and
clothe the needy and allay suffering, to help men and women who were deprived of work and livelihood through no fault of their own, to resuscitate prostrate agriculture and business, to lift the country swiftly and
surely out of the despair^ and demoralization into which it had been
plunged by four long years of ineffctual half-hearted, half-way measures
that served only to deepen the depression and make more difficult and
costly the task of rescue and restoration.

- 2 We favor the reduction of Federal expenditures, the balancing of
the budget, and the retirement of the national debt as rapidly as business continues to improve, unemployment continues to decline and the
national income, already more than twenty billions of dollars greater
than in 1952, continues to increase.
The last Republican Administration made a tragic failure of its
futile attempts to balance the budget because its resort to destructive
deflationary measures, betraying gross ignorance of fundamental economic
truths, resulted in shrinking the national income to less than one-half
of its normal amount and thus in drying up the only source of taxation
necessary to a balanced budget.
By the constructive measures through which the Democratic Administration has revived business activity, supplied employment and restored the
incomes and buying-power of our people, it has established the only sound
and sure means by which the budget can be brought into balance and debt
A reversal of these policies of fundamental restoration would jeopardize
the recovery evidenced in every phase of the nation1s life and raise again
the specter of hunger and want, destitution and destruction of the nation

- 3 -

We indorse the monetary policies by which the Administration has
made the dollar the soundest money in the world today. Under these
policies the nation1s gold reserves have steadily increased until they
are now greater than at any time in the past*
We pledge continuance of policies that make for an honest dollar of
stable purchasing and debt-paying power, free from the manipulation and
control of powerful special interests at home or abroad•
We oppose returning control of the dollar1s purchasing power to private interests which permitted it to fluctuate so disastrously as to
close every bank in the nation by March of 1933.
We approve continuance of the discretionary power vested in the
Executive to protect the dollar in the international markets so long as
the interests of American producers and workers can be put in peril by
excessive depreciation of foreign currencies. It is essential to American agriculture and industry that the United States shall be prepared to
act promptly at any time, whether or not Congress is in session, to make
its influence felt in the international monetary situation while the currencies of other commercial nations are still unstable and in process of

- 4 We favor stabilization of world currencies but only under conditions which will protect the interests of American agriculture, industry
and trade, and promote the international exchange of goods and services.
We oppose a return to any gold standard which would again tie
American agriculture and industry to a world-wide fall in prices, or put
the American dollar at a competitive disadvantage with depreciated currencies abroad, or expose the nation's reserves to raids for the benefit
of private hoarders and international speculators. Such a course would
plunge us back into monetary chaos and invite a recurrence of national
disaster such as we experienced under the old gold standard that has
broken down throughout the world.
We shall continue to oppose any resort to the printing presses.
We indorse the measures by which the Roosevelt Administration
promptly, vigorously, and courageously rescued the banking and currency
system of the country from the state of wreckage and collapse in which
it was left by the last Administration after twelve years of Republican
Recognizing that the banking system and the currency system are one
and inseparable, we pledge continued adherence to the policies by which
that system has been restored to soundness and stability and to public
confidence and efficient functioning.

- 5 Under the Roosevelt Administration public control of the banking
and currency system has definitely replaced control by private interests. This public control of the nation's system of money and credit
must be preserved at all hazards if the soundness restored to the currency after the collapse of March 1933 is to be maintained.
We pledge a continuance of monetary and fiscal policies that will
avoid the twin evils of inflation and deflation and promote the orderly
progress of enduring and nation-wide prosperity.