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HBW KHOLftftD'3 i'OaTAn Addresu by H&lph 8. Flanders Financial advertisers /\Bsool&tion of He*? England City Club, Burton. Mans* February 8 1 ^ It I8 with a feeling of some heelt tion that I talk to you tonight on the subject whioh I have ohonen. Hy hesitation does not come from a fe*Xing that the rubjeot is not int^r sting or 1 portant, it arlsos from the fear th t In your minds it may be an old story on ^hioh the ohanges have been runp so many times that it has no particular appeal* The fact is thnt I ntyaelf have said laoat of the thlnga I ara about to say so many times that it would be natural for me to gftt tired of repeating theo» On the other hand the points we are to dlaousa are do important, and so imioh remains to be done axmt them, that both you and I should be willing to look once more at Hew Sngland*a present and future in the hope th t ^e will find definite things which should be done, and which re can do to assure the continued prosperity of this region and &ft£ continued usefulness to the nation as a whole, as a source of wealth, of ideas, and of men* First, let us ta&e a look at our geogr&phic&l location. bad that we cannot have a map here. It is toe ??hen you go home take out an atlas of the United State*? and see how nearly isolated we are fro© the rest of the country, we stic^ clear out to the northe at with longer boundary lines on both Canada and the Atlantic Ocean than we have with the St'ite of New York, which is our only land bridge to the rest of tb nation* That land bridge is itself broken by La^e Chaiaplain and by a mountain ridge in western Mas^-chusatts and Connecticut, both of which are in some sense obstacles to free land communication with our fellow citizens to the west. This land oommnication runs through m 2 m narrow concentrated channels at Albany find New York* By water we are in contact with all the nations of the e .rth; by air we eoon will be. If our loc tion h^s cut us off to sotoe degree from the rest of our own country, it han at least had the advantage of giving broader outlook and a livelier interment In world affairs, with regard to *hich we may properly profeas a certain competence. Our isolation given us certain other advantages and disadvantages. On the side of advantage it haa given us a strong regional sense. State of M&iners, V«rraonters and Connecticut people are proud of their respective States, tout thiB atate pride does not destroy the regional interest and pride which goeo with the terra "New England"• •ense we are really unique. term. In this The middle-west is a big area and a big Th^re are doubtless certain raiddle-we«t types of thought and of custom; the eaiae 1R true of the Pacific Coant or of the South, but here our regional sense is sharpened into an active sentiment which is often made effective 1 i action and ^hich should be made still more effective. In considering our future, the first thing we should do is to take an Inventory of the resources of this remote appendage to the United States of America. Our mineral resources ar * few and lie for the raost part in the field of the quarrying industries, we have excellent supnlles of granite, marble, slate, linestone and talc, with some scattered deposits of other minerals such as feldspar, mica and glmse-sand* while these can assist in the prosperity of Hew England, they nr<* not important nor extensive enough toraafcea found-*tion for our future. we wil I continue to develop and use there depoaitB and to explore for new ones. • Iwe have certain agricultural resources* The high grades of agri- cultural soil constitute unfortunately a small part of our total area, acrsages-3rtt-*i£he potato growing areas in Maine, the central section of the Connecticut Valley and of some of the other river v&lleys hive many square railea of fertile, tillable soil, but of the greater part of the region we must sadly adnait that it is too 8te«£,or too stony, or the top soil too thin to be of Gruoh uae for agriculture* we must make good use of what we have and therewith be content. Much, however, of the land not suitea to agriculture is adapted to forest growth* exploited. In past generations these formats have been destructively The possibility of tr** ting thera as a continuously harvested crop is one of the new developments now underway. Our extended seacoaat is the seat of important and extensive fisheries, ranging all the way from clams^and oysters, to cod rand tuna fish. These fisheries are among the most important in our hemisphere and ve are fortunately situated with reference to them. There is one of -our resources which we have in the superlative degree and th**t is the types of ooaot country and mountain scenery which attract people for short vacations or auraraer residence. It is adapted to sport?* of all kinds, whether for sailboat, golf or winter skiing* we need have no sense of inferiority 1« this particular one of our natural assets* The greatest of t**e«e assets ie yet to be mentioned, and that is the human product of our rocky soil &nc ruggeti climate. The great asset of New England is in its men and women, its boys and its girls, and the rocfcy soil and ruggf^ climate doubtless have something to do with the high quality of this human product. It is on a South Sea Island. It le not so e^sy to g*t along here as ve ^ve the children of ancestor*? rho survived under difficult conditions and our children in turn <*111 descend from those living in a region whose handicaps we have been describing. In the long run and from tho standpoint of the development of capable human beings these handicaps may well turn out to be assets. Our population has had a wide variety of ©xperl&noe in a wide variety of agricultural and industrial occupations* while a consider- able percentage of that population It urban rather than rural, yet it has lived in urban communities in which the accent is on production rather than on occupations, which, however necessary, are accessories to the main work of the world in producing and distributing the means of the world's livelihood* To a very high degree also our population possesses ingenuity* This is not so much the ingenuity of trade and of legal devices, though these are not lacking, &B it is Ingenuity in devising products, methods and institutions* There is perhaps no statistical basis for determining ingenuity unlesn it be patent office records which cover a certain area of tho subject* 8ut our competence in this respeet is gener lly recognized by people in oth^r parts of th« country, TThere are other respectB in which our preeminence is generally reoognized. of education• country; Hev England has b«ien and «till remains the great foous It does not have the largoat universities of the it doee have an astonishing group of preparatory schools, colleges and universities, to which some of th«? brightest and best of the young people have be*jn eentt taA from which ©any of the leaders of the nation in all fields of activity have gone forth* More than men and women have been exported from New England schools and colleges* They have been a prolific source of ideas, whether in education, or in politics or in other fields of motive life* •I Related to our school* and college are our institutions of scientific research, ^e have within our boundaries, even within gun shot of the spot There we are holding this meeting tonight, some of the greatest raeeayti-; institutions in the ^orld, recognized as suoh all over the world* These institutions have unfortunately been more deeply appreciated, generously supported and actively used by other parts of the country, than by New England itself• • 6Such Is New Kngland, As sucii «h© ha« played a p-irt of which ^e raay all toe proud In this war period; whether In the record of her eons in the fighting forces or in the record of production on farm, in forest and in factory* for the transportation of war materials on the land, through the air or on the sea* Nowhere have these things been done more effectively than here. In particular, no part of the country h*s a better record in that preeminently human aspect of our war work, freedom from strikes, slowdowns and othfr types of labor trouble. Here is where New England character hai showed itself* be found in wsge~eamer and emp&gpyer alike* Th^t character is to Its existence has been revealed by our steadiness of purpose in warfare. We may reasonably hope that the pe«ioe-tlae years ahead will show similar self respect and self control* Let us now look ahead to the postwar yoars* What can such a rogion as we have been describing, with such natural and human resources, look forward to in the postwar world? Some of the conditions nre especially favorable for ue« For instanoe, there has been comparatively little wartime expansion of such a kind and amount as to require severe deflation* In anly a few canes has the growth of war industry been such, or the facilities us^d so special, that they cannot be changed to peace-time activities. In general, our textile and metal working plants are easily and quickly adaptable* It is true that in the production of airplane engines and especially of ships in our shipyards, we will ha e to undergo a severe reduction* It will be a reduction not an extinction* These necessities have been foreseen in advance and will not come ae sudden unexpected emergencies. There is but one serious possibility that needs to be faced tin& met* -7 There fcM been much talk gyad-^oryeNrpunfllMrce, particularly by • Senator lloCarron'a Committee, about closing up war expanded industries In the north and e.'&st and tr&nsferring their peace-tiae activitieB to the ne^er plant© located in the nouth and w<*st* There <*ould seem to bo little danger of doing this with our ehipyards, but there is some danger of an endeavor to carry this out in our New England airplane engine Industry. Proposals of this sort &x*& b&ped on false and h*»pty assumptions. Such a plant as that of the United Aircraft ghglne plant in Hartford making the Pratt & Whitney airplane engines, is not a machine shop all by itself without roots and connections. Its foundations are something beyond the cement walls built into the Connecticut soil. Its real unseen foundations are the generations of mechanics who have built up the apptitudes and experience of the community in which the plant is located. The operations of the plant itself depend on ite ability to draw on the thousands of skilled toolmakers, draftsmen and engineers who are to be found in scores of industries located in the same rn ion, some of thera for many generations. There are besides all the services af supplies in the way of small tool manufacturers, tool designers, special machine tool builders, and all of those oth r services. Kaon in turn is based on legacy from previous generation of skilled craftsmen and denignerft. The shop can be ©ovod and its roots can be pulled from the soil, but there is no corresponding soil to which these roots can be transplanted without moving a whole culture fi»ora this region to oth ra In which £t is not a native growth. As WAi pointed out by ft recent speaker before a Boston audience, li a psychological error Involved her® as well. The main • 8 - excuse for this drastic transplantation is the assumption that it is wise to get industry important to war production removed from our coast and located far in the interior* Line oomplex* This is really a &eupg&ri&l It is a dangerous state of mind for the American people to allow themselves to drift into# we should put our industries even though related to war, where the conditions are best for doing their asofit effective work and then with full confidence and our utmost skill prepare to defend them wherever they are and ought to be. The MoCarron proposal is a typical example of the situation mentioned in the beginning of this talk. N«r« England is located clear up in the northe.HBt part of the United States. It is in a sense remote from the re^t of the country, we are not politically so strong that we can look automatically for support in protecting our interests. Our interests will be attacked and our only strength and safety lies in our own efforts. ?hn rifrCfflrron prnp mm In urv -\ m n n VrTpoinft, we must be certain th&t the measures we propose for our own protection and advantage are alao in th&intereato of the nation aj a whole and with that point assured we must fight our battles with vigor and with faith. No one will fight them for us. So far, m% have heen talking about protecting Bei England's •*e with to to sort than this* osition, we *ith to expand How England(i industry and. -?itn it, improve h^r ooolal oonditions, the walfara of her paopla, and th« contribution f?he oan mr-x&e to thi walfar« of th« whole nation* It hai alre dy bf»er. said th t wa art not in riung&r of the extreset of deflationary forces T?hioh eooie other parts of th^ country may have to undergo, we v«re vail preparad for ^fir production and did not hav^ to build eo auoh ne . we, therefore, wili. not have to Aisoard fmollltiaa ana shorte tiona on anything like tho loaXa -Milch aoaa other parts - 9of the country will have to undertake. This solid, uninflated foundation It the right one on which to build ne expansion. What are the directions In which ^e should be moving? One of them has had much attention in the past t%m months. Active measures are being undertaken to revive and re-equip the facilities of the Port of Boston, Beyond this, plans are being made for organizing it and operating it as a business entity. Even beyond this, citizens of Boston Ty^tAff are laying .lane for expanding Boston's fj^nofhcial- interest and investment in shipping, Al-i of this promises well for the future. Boston will go dowhhill as a whole if it goes downhill ar> a Port, and when Boston goes down, New England cannot have a healthy growth. Among the other elements favorable to the expansion of Business opportunities here is the fact that wt are the traditional home of small industries* A very few nation-wide corporations have some of their plants here, but the great bulk of Nev/ Kngland industry is made up of comparative 1; small and medium-si zed companies, and on the aggregate of the operations of these small and medium-sized companies the prosperity of our region depends. This condition makes lie* England an especially favorable ground for the planting and growth of new industries which, in turn, may grow from the seed into small undertakings, and from small undertakings will grow into more prosperous ones* A B a matter of fact, we have not merely the tradition and the present condition of a small industry region, In addition to this, KUCH we have, a flood of ne- ideas, ne^ projects, ne** inventions seathing and boiling in the Hinds of Ne"- Englanders, that there should be no lack in the coming years of business opportunities of the old*fashlonea sort which build up the induntrlal strength of t is country. http://fraser.stlouisfed.org/ tev Bank menof St. not Federal Reserve Louisin There are the current of the?-,e n*w ideas who have any conception of * • wort • • • ore * in • lo enterprises. " . • • • " • . . o .. . 0" ' foglftJ ktg* • . . , . 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