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SEVEN YEARS OF DEMOCRACY
AN ADDRESS
BY
HON. ROBERT L. OWEN
OF OKLAHOM A
DELIVERED BEFORE THE DEMOCRATIC
STATE CONVENTION OF OKLAHOMA
ON FEBRUARY 5,1920, IN THE CITY OF
MUSKOGEE, OKLAHOMA
(Primed in Ihe CONGRESSIONAL RECORD, Friday, February 27,1920)
WASHINGTON
GOVERNMENT PRINTING OFFICE
1920
1G7473— 20515
m
m
■^ gaeggr
AN
A D D R E S S
BY
H O N . R O B E R T L. O W E N .
, i\Ir‘ Chairman and fellow citizens:
1rue Democracy is a religion. It is not completely monop
olized by the members o f the Democratic Party. Many o f its
loyal disciples find themselves affiliated with other parties.
Democracy truly believes in the rule o f the people, in their
wisdom, in their common sense, in their common honesty, in
their justice, in their patience and steadfastness, in their right
and ability to govern themselves. It thinks in terms o f the
greatest good to the greatest number. Its disciples should be
‘ Soldiers o f the Common Good.’ Its great patron saint was
Thomas Jefferson, who stood for freedom of religion, freedom
of speech, freedom o f the press, the education o f the people bv
free schools, the right o f every citizen to vote.
“ On these principles Jeffersonian Democracy took eontrol of
the Government in 1801 and held it for many decades. When
the party organization became weakened by selfishness and fell
under the control o f those who believed in human slavery, it
passed from {tower by a revolt o f Jeffersonian Democrats, who
would not stand for human slavery. They organized a new
party and took the name which the followers o f Jefferson had
employed in 1800, calling themselves Republicans.
“ When the wise and kind Lincoln, on the field of Gettysburg,
prayed that the Government o f the people, for the people, and
by the people should not perish from the earth, he voiced the
spirit of true democracy throughout the world.
“ When the Republican Party got’ control of the Government
dining the ( i\il War, 1861—I860 , every selfish interest that
wished to use the powers of government for private advantage
gradually attached itself to the Republican Party, courted its
leaders, became busy in its organization, contributed to its elec
tions, promoted its nominations, and steadily obtained an in
creasing influence in its management. Unhappily it seems to
be the history of ad parties.
\Vhen in 1912, after many years, it became obvious that an
w lv e government o f organized commercial and financial
selfishness had gained control of the organization o f the Repubhcan Party and of the governing powers of the people of the
united States, the spirit-of democracy, that sleeps but never
aT s e } 1} thr hearts of the Progressive Republicans, under
the leadership of Theodore Roosevelt, and bv this revolt there
we C!em? cratic Party if* first real- opportunity
tion' I ! F lV'
demonstrate that jt had, through tribulftT0'1’
t !>a,'k to the true principles o f Democracy of .Teffer- *nd o f Lincoi». 1111(1 magnificently the Demohv n«tWnHy r>as resPonded. It was assisted on many occasions
by patriotic Progressive Republicans.
w h J t l ^ ^ r ^ 8 °,l new voters who will seek to know
what the party did when it got the power to act Thev will isk
and our unmindful opponents will ask:
3
" h a t did the Democratic Party d o ? ’
Let us answer that:
2
»
1C ,7 4 7 3 — 2 0 7 ,4f»
3
LOW ERED T H E T A R IF F .
“ Immediately it revised the ‘ robber’ tariff. It cut down
the prohibitive schedules that selfishly sheltered monopoly in
the United States. It put the necessaries of life on the free
list—the free-list importations have increased a billion dollars a
year under Democratic management; it removed unjust tariff
discriminations, and by lowering the tariff stimulated our
imports and our exports. (38 Stats., 114, Oct. 3, 1913.) Our for
eign commerce has increased from four billions in 1913 to ten
billions in 1919. Let Democrats always keep in mind that, by
logical necessity, ultimately imports measure exports and ex
ports measure imports.
“ II established the Tariff Commission (39 Stats.. 795), to take
the tariff out o f politics and deal with it strictly as a business
matter. The old rallying cry of the Republican Party o f the
Protective Tariff League, which promoted laws to tax the con
sumers for the benefit o f the selfish members o f the league, is
gone, because of the necessity now o f admitting the commodities
of Europe, as the only available means by which the people o f
Europe can repay the many billions of loans made them by
our Government and by our people. It has been demonstrated
that a revenue tariff, fairly drawn, is abundantly sufficient
to honestly protect American industries against foreign competi
tion.
“ The overwhelming majority o f American industries, because
of the enormous production and productive power o f American
machinery, can now compete on the most favorable terms with
any nation in the world.
“ What did the Democratic Party do?
PRO G R ESSIVE
IN CO M E T A X .
“ It placed the taxes on those best able to pay the taxes, and
Irom whom taxes were more justly due. It took the tax from
the backs o f the consumers and placed it upon incomes, by the
progressive-income tax, so that those who could pav the cost o f
the Government without distress should do so. (39"u. S. Stats.,
750, Sept. 8 , 1916.)
It passed a progressive-inheritance tax so that the wealth
of the country should pav for its own protection. (39 Stats.,
1091, Mar. 3, 1917.)
“ H° the American people want these statutes repealed?
“ It passed the excess-profits tax, to compel those profiting by
war conditions to meet the larger part o f the cost o f war. (39
Stats., 1000, Mar. 3, 1917.)
“ It passed the war-profits tax for the same reason. (40
Stats., 1088, Feb. 24, 1919.)
“ What did the Democratic Phrty do?
THE
F A R M E R S.
“ It made a resolute effort to benefit the farmers of the coun
try, and to improve our agricultural output. For instance:
“ It passed the farm toon act, enabling the farmers o f the
country to obtain cheap money on long time from the investing
public, through nontaxable farm-loan bonds. Over -$300,000,000
have been loaned to farmers, and under this system ultimately
the farmers of the country will get nearl.v.all the money they re
quire at the cheapest rates. (39 Stats., 360, July 17, 1916.)"
“ The farm loan act had the effect o f compelling land-mortgage
banks to lower their interest rates, and thus lues been of great
value to the farmers.
167473- 20545
“ The Republican Semite, without a bearing, reported a bill
recently to repeal the tax-exemption features of the bonds based
on joint-stock bank mortgages authorized under this bill, but
withdrew it when protests were tiled.
“ The Democratic Party passed the Smith-Lever agricultural
extension act, under which the vast knowledge acquired by the
Agricultural Department in agriculture, horticulture, animal in
dustry, bee culture, farm economics, canning and preserving
foods, raising poultry, etc., has been'put at the service o f every
farmer in every agricultural county in America by trained men
and demonstration farms. (.‘i8 Stats.. 1086, Mar. 4, 1915.)
“ The Democratic Party passed the good roads act and appro
priated millions to build, by cooperation with the Slates, hard
surfaced roads connecting the farms with the cities, to the ad
vantage o f both. (89 Stub, 355, July 11, 1916.)
“ The Democratic Party has vigorously expanded the ruralroute system—delivering mail to the farms.
“ It has built up the Parcel Post System, carrying parcels to
and from tin? farm, and to and from the cities. Do the American
people or the farmers want these acts repealed?
“ What has the Democratic Party done?
LABOR L A W S .
“ It has shown its deep desire to serve those who labor.
“ It established a Department of Labor; has developed it; has
made it useful in steadily improving the conditions o f life for
those who labor. (37 Stats.; 736, Mar. 4, 1913.) It has estab
lished employment bureaus, to bring the man and the job to
gether. It helps to settle disputes between labor and capital.
It has developed the Bureau of Mines and the Bureau of Stand
ards.
“ It passed the child-labor act, to prevent employers from deny
ing children their right to be educated, and to have some o f the
freedom of youth. (39 Stats.. 675, Sept. 1, 1916.)
•
“ It passed the eight-hour lair—one of the great accomplish
ments desired by organized labor. (39 Stats T**i Sept 3
1916.)
“ It passed laws providing for the minimum wage.
“ It#passed the workntfh's compensation act, for accidents and
death in industry. (40 Stats., 961, Sept. 13, 1918.)
“ It exempted combinations o f laborers and of farmers from
the inhibitions o? the antitrust act.
“ It passed a great act declaring that ‘ labor is not a com
modity.’ This act is regarded as a magna ehartn for labor, and
forbids labor, consisting of human flesh and blood, to be handed
about as a chattel. (38 Stats., 7:51. Oct. 15, 1915. >
“
passed an act providing for vocational instruction and
is engaged now in giving vocational instruction to many of our
young soldiers returning from abroad who have sought this
advantage. I heartily wish a larger number were being given
rhese advantages o f instruction. (39 Stats., 929, Feb. 23, 1917.1
“ Do they who labor desire to rebuke the Democracy for these
acts and have these laws repealed?
“ It passed the seamen’s act to give liberty to those who
l high seas, to put an end to the slavery practiced
at SC- fnr H prm„U e bet*tr conditIons o f life nt sea, and safety
at sea for the sailors. Tins legislation has been o f very great
li ii
Is
moree Sam
traactive
cH v i ^to W8ges
f f?ni,ors
»^king the profession
11,01
young °men.
It and
was a necessary step in
107473— 20545
ii
a
■
4\ 1
5
order to provide men who would be needed for the great mer
chant marine which the Democratic Party desired. (38 Stats.,
1164, Mar. 4, 1915.)
M E R C H A N T M A R IN E .
“ The Democratic Party has now built up a gigantic merchant
marine, with 1 0 ,000,000 tons o f shipping, big enough and strong
enough to take our commerce and our flag to every port in the
world. This alone is a monumental service to the American
people.
MONOPOLIES.
“ Wluit did the Democratic Party do?
“ It did many things to abate the evils o f monopoly.
■‘ It passed the Clayton Antitrust Act, providing various
means with which to check the practice o f monopoly. (38
Stats., 730, Oct. 15, 1914.)
" It established the Federal Trade Commission, with au
thority to suppress unfair practices in commerce. The Federal
1 rade Commission is destined, by its example, by its policies,
and by its work, finally to teach the American people how to
control the abuses of monopoly and of profiteering. (38 Stats.,
717, Sept. 26, It) 14.)
“■rfhe greatest o f all monopolies in America was the monopoly
of money and credit, known as the Money Trust.
F ED ERAL RESERVE ACT.
‘ The Democratic Party passed the Federal reserve act,
established 12 credit centers, with 12 great Federal reserve
banks under the control o f the Government of the United
States through the Federal Reserve Board, so that any citizen
having sound credit, based on commodities or on actual com
mercial transactions, could have his note underwritten by his
local bank and get money from the Federal reserve bank. This
act took from the Money Trust the monopolv of credits. (38
Stats., 251, Dec. 23, 1913.)
“ This act lias enabled the 25,000 banks in the United States
to accommodate our national commerce without asking per
mission o f any private monopoly. This act has made panics
impossible.^ Tt has given great stability to the banks and to
credits. Under this act in six years the resources o f the
national banks have increased from ten billions in 1913 to
twenty-two billions in 1919. All the banks included have had
their resources increased from twenty-five billions to fortyeight billions under Democratic management in six years. Not
a single national bank failed in 190L9.
“ This act enabled the United States to finance Europe, to
organize and conduct and to win the greatest war in history.
Those who fought this act are now asking the people of the
United States to put them in control.
“ Do the business men of America want this act interfered
with or to rebuke those who passed the act over persistent
Republican opposition?
“ The Democratic Party has developed the postal savings
banks for the accommodation o f those timid people who do not
deal with the banks but are willing to trust their deposits
with the Government, and their deposits are thus made availa
ble for the banks. Under these acts the banks of the United
States have had the greatest prosperity in their history and at
the same time have substantially lowered the rates of interest
to American business men.
167473—20345
6
“ What tliil the Democratic Party do?
“ It has passed many acts improving the Public Health Service
for the conservation o f human life.
POPU LA R G O VERN M EN T.
■
“ It has done many things to promote popular government.
It was due to the Democratic Party and tiie Progressives that
the direct election of t nited Stales Senators was put into the
Constitution. This amendment has made the Semite of the
United States more responsive to the opinions of the people,
and will make it still more responsive than it is now.
“ Do the people want to vacate or abandon this right or re
buke the Democracy for demanding greater power for the
people?
“ The Democratic Party democratized the committees of the
United States Senate by giving the committees control o f the
chairmen and of conferees.
“ The Democratic Party established modified cloture in the
Senate so that a few men could not by unlimited debate per
manently defeat the will o f the Senate itself. (1917, vol.
55, p. 19.)
“ It passed an act forbidding briber)/ in elections.
.PEACE T R E A T IE S.
“ It negotiated peace treaties with all the important nations
of the world except Germany, Austria, Bulgaria, and Turkey,
who wanted war—and got it.
IT CONDUCTED T H E WAR TO VICTO RY.
“ /t kept this Nation out of war until it became clear that the
liberties o f America and o f the world were in jeopardy from
the aggressive conduct of the Teutonic allies. When war be
came necessafy for the protection o f the honor, the dignity, the
liberties o f the American people, the Democratic administration
organized the Council of National D efense: organized the Na
tion for war, down to the very crossroads; passed the declara
tion of war and the great war measures; -established the War
Industries Hoard, the War Trade Hoard, and the food and fuel
control; financed the entente allies; passed the war marine in
surance a ct; set up the War Risk Insurance Hnreun: organized
over 30,000 four-minute men; called to the t v /o r s 10.000,000
Americans; raised an army of over 4,000,000 nun : expanded the
Nary and merchant marine; provided the munitions of war;
trained and transported the required forces to Europe; pro
tected them from disease and rice as far as h u m a n ly possible;
broke up the German submarine campaign; crumpled the lines
of the German troops in France; crashed the moral" of the Timtonic forces and compelled their military leaders to beg for an
armistice, in effect an unconditional surrender, th u s saving the,
civilization o f the world from the greatest mititmy menace in
the history of mankind. (39 Stats., 649 ; 38 Stats., 711.)
PRO GR ESSIVE R E P U B L IC A N S.
Mr. Chairman. I wish to express my warm and heartfelt re
spect lor the patriotic Republicans and citizens of other parties
who loyally cooperated from the Atlantic to the Pacific in win
ning this Great War. And I wish to express my deep gratitude
to those progressive Republicans who cooperated with the Dera
i l i n
the great legislative program o f the six vears of
Democratic control.
167473—20545
7
“ What (lid the Democratic Party do?
“ Why, it passed the ‘ s ele ctiv e-d r a ft act,' by which rich man
and poor man; educated man and ignorant man, Protestant and
Catholic, Jew and Gentile, black and white, took their position
side by side on the battle line or in the service o f the country
where each was best fitted to protect the liberties o f their com
mon country. Never was a more democratic act passed. No
man was permitted by law to buy a substitute with money, but
every man’s life and service was put upon a basis o f equality
in(the defense of his country. (40 Stats., 70. May 18, 1017.)
“ What man had the impudence to question the ‘ Americanism ’
of the Democratic Party in all these great accomplishments?
W hat is ‘Americanism ’ if it be not the great policies which the
Democratic Party have put into execution when it stamped out
sedition at home, whipped the Hun abroad, and made America
the commercial, financial, and moral leader o f all the world,
so that all great nations do homage to the United States, and
small nations, when they bend their heads in prayer, pray God to
bless the American people. America has become the beacon
light to all mankind, and no narrow partisan can hide this light
under a bushel or question the glorious Americanism of the
Democratic Party.
“ Under the JFor Risk Insurance Bureau was written insurance
for cur soldiers abroad o f $40,000,000,000, and under our war
marline insurance act American commerce was protected with
out loss to the Government.
“ The Democratic Party passed the War Finance Corporation
act for the protection of our business men under the extraordi
nary interruption and stress o f war.
“ It passed the capital-issues act in order to safeguai'd all
credits o f the country and make them available for war. (40
Stats., 512, Apr. 5, 1918.)
“ It organized the Red Cross movement down to the cross
roads, and in this Great War enterprise the Democratic Party
gladly availed itself o f the patriotism of citizens of all parties.
T W O GREAT A M E N D M E N T S — W O M A N ’ S S U F F R A G E ; CRO H 1BITIO N .
“ Uy the combined efforts of the progressive men in both
parties two great amendments to the Constitution of profound
social and moral significance have been passed— woman’s suf
frage and prohibition. Of still greater importance is the fact
that these great reforms were due to the progressive men and
women in the homes of America.
THE
ELECTIO N
OF 1913.
“ Before the Great War had terminated successfully there
came on the election of 1918, in which the party lost many votes
because men who were aggrieved by the conduct o f the war, by
the selective-draft act, by the operation of the Army and naval
forces; many men injured by the priority orders and the con
duct o f the railroads where the administration had to give the
right o f way for war purposes; many men injured by the Gov
ernment commandeering materials and men; many men hurt
by the sudden raise in prices, due to the Government competing
for men in the shipbuilding yards and In munition plants; many
offended by high taxes and by the extravagance and waste o f
war visited their displeasure on the Democratic Party.
“ Many men of German blood or of German sympathy who
resented the United States going into war.
167473— 20545
“ Many men who opposed war as a principle were either
turned against the Democratic Party or their devotion to the
party was weakened.
“ There was a general disposition to blame somebody, and the
administration was the victim.
“ The Democratic Party, with its leading men intensely occu
pied with the winning o f the war, were in no position to present
the accomplishments of the Democratic Party to the people
o f the country.
" Moreover, in 1918 the United States had the extraordinary
affliction o f ‘ Spanish influenza,' which killed in that year 447,000
o f our people and over 880,000 of them died in the fall of 1918.
Under the advice o f physicians political meetings were for
bidden.
“ Was it any wonder the Democrats lost both Houses? More
over, the result of the war was still unknown. It is now gen
erally conceded that the President’s famous preelection letter
alienated many liberal or progressive Republicans and vitalized
those who were partisans to strenuous activity in resentment
o f what they construed to be an affront and lack o f apprecia
tion of their loyalty in supporting the war activities of the
administration.
“ Mr. Chairman, I wish it might be truly said that none of
our people during the Great War, either Democrat, or Repub
lican, had made any mistakes in the management of the war in
the Army or Navy, or of the railroads, or of the telegraphs or
telephones, or of any o f the Government’s affairs [Republican
and Democratic citizens were almost equally divided in these
activities, but the percentage of errors and wrongs was very
small considering the magnitude of our operations in the w a r ];
but I can truly say that the record of accomplishments in the
last six years of complete executive and legislative control by
the Democratic Party is the most magnificent ever made by any
party in any country.
“ The Democratic Party found the United States in depression
in 1913, threatened with a panic. The New York banks de
clared in tiie summer o f 1913 that they did not expect to be
able to furnish the money to move the crops in the fall, and the
country banks were advised not to expect the customary\redis
count privileges. The Democratic administration thereupon
furnished the money out o f the United States Treasury to move
the crops and repeated the same operation in 1914, and now,
after six years o f Democratic management, the country has
been brought up to-a condition o f the greatest prosperity in its
history. The banks are crowded with money, the jieople are
living better than ever, business is prosperous, everyone desir
ing to labor can find the opportunity, the trains are crowded,
and the hotels are overflowing.
“ Is it possible that the alleged delinquencies o f a few in
dividuals, great or small, shall blot out the legislative and
executive accomplihments o f the Democratic Party?
“ Is it possible that the human lability of a few citizens in
office will be urged as a just reason for reversing and condemn
ing at the polls the ideals and the progressive, constructive
policies of the Democratic Party and rebuking the spirit o f
loyalty and service by which it has been inspired?
“ Mr. Chairman, such a judgment would be ns thoughtless
and as unjust as the condemnation o f our sons who won the
167473—20543
battles of the Argonne because some of them blundered and lost
llieir way In the excitement of battle or came out of the carnage
with muddy shoes and bloody uniforms.
••The Democratic Party was wounded in this Great War. It
was wounded in many ways, but it came nobly through every
trial and brought to the American people the most glorious vic
tory ever recorded in all the annals o f time. It made America
the leader of the world.
“ No party in history ever deserved better o f the people than
(be Democratic Party now deserves of the p eop le o f the United
States.
J'H k
peach
treaty
;
“ Our President, whose leadership and whose sympathies
were behind the record of the last six years, went to Paris
and brought back a glorious peace treaty, establishing
peace among all die nations of the world, by which all the
nations of the world pledged themselves to respect and preserve
the territorial integrity and political independence o f other
nations; to settle all interactional disputes by conciliation,
arbitration, and peaceful adjustment; to end competitive arma
ment; to coerce any outlaw nation again attempting to deluge
the world in blood by a world-wide economic boycott and by
such pressure as should be necessary to restore order.
“ After many months o f study and acrimonious debate the
treaty of peace at last has four-fifths o f the Senate in favor
of it without amendment or with reservations that, after all,
do not seriously change its meaning.
“ Tlie covenant of the League o f Nations ushers in a new
democratic era in which all the great nations have agreed that
all just government is based on the consent of the governed.
“ The monarchies and autocracies are crushed. The democ
racies of earth are completely and overwhelmingly triumphant
throughout the whole world.
“ But to accomplish this magnificent result our people lost a
hundred thousand of our best young men, twenty-six billions of
money, and dislocated all o f our internal affairs.
“ Shall we now lose the reward o f these sacrifices— the great
est opportunity of Service in our history—by refusing to ratify
the treaty and thus fail to assume the moral leadership of
mankind which is tendered our Republic by Hie unanimous
sentiment o f all the free nations? Shall Senators take a small
revenge on the President for his alleged neglect o f the Senate,
reject the treaty, wound all fhe friendly nations/of earth, who
fought to the death in the cause of liberty side by side with us,
and lose our preeminent position with them purchased at such
a sacrifice? Shall the beloved youth o f the world, our own best
beloved, have died in vain?
“ Tf the treaty be not perfect its errors can be corrected with
out tearing down the entire structure. Justice and reason will
prevail in the assembly of the world’s best representatives. The
treaty should be ratified without delay, with such reasonable
reservations as shall put the American people whole-heartedly
behind it.
T H E FUTURE.
“ And now, Mr. Chairman, we are face to face with the immedi
ate future. It is not enough to say what we have done; it is
of the greatest importance to say what we shall do. The spirit
and purpose, the vision and constructive genius which the
107473—20545
Democratic Party has exhibited in the last six years, justifies
the faith that this great party can be better relied on than any
other party to solve the reconstruction problems following the
war.
THE HIGH COST OF LIVING.
“ The greatest problem confronting the country is the high
cost of living, which deeply concerns those o f fixed salaries,
fixed wages, fixed small incomes.
“ Many causes have combined to bring about the high cost of
living and cut down the purchasing power of the dollar. The
principal causes a re :
“ 1. Credit expansion in the form o f United States bonds and
certificates of indebtedness, short-time Treasury notes, exceed
ing $26,000,000,000.
“ Expansion in bank deposits, amounting to nearly $20,000,000,000 from 1013 to 1920.
“ Expansion of Federal reserve notes, made necessary to meet
rising prices and the consequent increased demand for actual
currency.
“ Expansion o f gold sent to America to balance our excess
commodity shipments abroad, amounting to eleven hundred mil
lion dollars.
“ These expansions of credits make dollars much easier to get
and make the exchange or purchasing value of the dollars less
because dollars are easier to get.
“ Similar foreign credit expansion in foreign bonds, bank de
posits, and currency has in like manner reacted on prices abroad
and raised the prices of foreign commodities imported into the
United States.
“ 2. Diminished production. European labor for five years,
and American labor for two years, has been largely withdrawn
from the production o f goods and raw materials required for
normal peace times. In the United States we withdrew from
the factories, fields, mines, forests, and fisheries over 4,000,000
men and put them under arms and in training for war, and we
withdrew probably 10,000,000 laboring people from the activities
o f peace to the activities of war, causing a diminished produc
tion o f goods.
“ 3. Increased consumption. The increased consumption by
war in the destruction of property on land and sea, by the waste
and extravagance o f war, emphasized diminished production.
“ 4. High cost of labor: Because of the urgency o f war and
strenuous competition, extraordinarily high prices were paid for
labor in our factories, in munition plants, in shipbuilding yards,
and other Government and private works engaged in war pur
poses. The withdrawal o f millions of men for war added to the
scarcity of labor and doubled the prices paid.
“ The extraordinarily high pay led many men to work half
time— lowering production. They satisfied their wants with
half-time labor.
“ 5. The extraordinary European demand for the necessaries
of life added greatly to the demand for American goods and
raised prices in America on all the necessaries of life
“ 6. Impairment of transportation: Transportation on land
and sea was subjected to ruinous losses. Millions of tons of
ships were sunk. There was no time to repair or rebuild cars
or locomotives, or to keep the railways in good condition, and
107173— 20545
now transportation is lacking efficiency even where production
is available, thus adding to the cost o f living.
“ 7. The cx cess-pro tits tax and certain war taxes have been
shifted to the price of commodities, and thereby upon the con
sumer, raising the cost of living.
" High taxes of all kinds are in some degree put on the cost of
goods wherever possible.
“ 8. Interstate monopolies, restricting production, restraining
trade, hoarding necessaries of life and raw materials, and exact
ing unfair profits and high prices has added immensely to the
high cost of living.
‘ 9. Profiteering: Many people are taking advantage of un
settled prices and conditions and the absence of a suitable mech
anism to control if, to profiteer on those who are compelled to
buy.
f
10- rlhe unequal distribution o f wealth, exaggerated by war,
has led to extravagance and waste by thousands who have
profited and ^ef a false standard of prices in many lines by
the teckless expenditure of those who need nor measure the cost,
compelling people who can not afford it to pav fictitious and
false prices.
“ 11. Wholesale speculation in stocks, commodities, real estate,
and business has led to excessive interest rates—going up on the
slock exchange to 20 and 30 per cent; a 0 and 7 per cent rate
by (lie federal reserve hanks, and 7, 8, and 9 per cent for com
mercial loans. This is one of the most serious factors in the
lugh cost of living, because as goods pass through various hands
each adds a merchant’s profit to the original high cost. It has
also resulted in depreciating United States Liberty bonds, be
cause they hear a reasonable and moderate r/ite of interest, and
seem a poor investment, beside current rates much higher.
" Speculation in stocks alone was employing on the New York
Stock Exchange within the last few months $1,900,000,000
loaned by banks on call or short terms for speculation. Such
credits tyiould bo preferably used bv the commercial banks for
industry and commerce at legal rates.
KEMKDIKS.
Some of th<' causes of the high cost ol living can be almost
immediately corrected, and stops should be taken o f a concrete
character by which to reduce the cost o f living. Among the
remedies which are obvious is to stop the expansion of credit
for unproductive purposes, such as pure speculation in stocks,
commodities, and real estate.
“ 1*le productive power of tlie people of the United States
amounts to approximately seventy billions per annum, and will
supply all fli<‘ credits required for the most vigorous develop
ment.
“ 2. To stabilize the Federal reserve note issue and keep
the currency at a relatively stable figure.
•‘ The per capita circulation in the United States in 1890 was
$22.82; in 1900, $26.93; in 1910, $34.33; in 1914, $34.35; in 1919,
$54. The expansion In 1919 included $11 gold per capita sent
from abroad in exchange for goods.
“ 3. The taxes should he reduced and the cost of the tear
should he extended over .70 pears, so that the cost of the war
will he distributed over the future and not fall too heavily upon
tin' present generation or compel high taxes in paying the prin
cipal at this time.
107473— 20545
“ 5. The Federal Reserve Board should lower the normal rate
of interest for discounting for member banks to not exceeding
3 or 4 per cent as a normal rate, increasing the rate if banks
seek discounts in excess o f a fair proportion o f the reserves to
which such bank is entitled.
“ 6. The United States Government should be conducted on
a strict budget system, limiting expenditures to a moderate
income by reasonable taxation. Extravagance and waste in
government should be prevented find treated as a serious wrong.
Very great economies are possible in governmental administra
tion and should be vigorously worked out under the most im
proved modern methods.
7. The people of the United States should demand reasonable
interest charges, and usury should be checked. The artificial
usurious rates charged on call loans in the Stock Exchange in
New York should be forbidden by law, and restrained by the
powers o f the Comptroller o f the Currency and the Federal Re
serve Board and by act of Congress if necessary.
“ Call loans on stock exchange collaterals should be converted
in'o t im e loans for the benefit of the stock exchange as a true
market place and as a sound public policy. Time loans can not
command very high usurious rates.
“ It will be impossible for the railroads of the country to get
money on tlieir bonds at decent rates unless the normal interest
rates are brought down. Unless the railroads can be financed
on a fair interest rate for their bonds the public will pay the
bill in higher freight rates and passenger fares. If the interest,
rates are brought down to a reasonable basis, the United States
Government bonds will come back to par.
excess
r u o F iT S .
*•The excess-profits tax should be repealed. and the Govern
ment should go out o f partnership with those who are charging
the American people excess profits. The Federal Trade Commis
sion should hare its powers expanded as an agency by which io
reduce the high cost o f living by restraining unfair practices in
interstate commerce.
R IG ID ECO N OM Y N E C E SSA R Y .
“ During the war it was exceedingly difficult to entirely pre
vent waste and extravagance, but now the Government should
enter upon a policy of rigid economy in the management of its
affairs. Economy is as essential in Government as it is in pri
vate affairs, and if we are to lower taxes it is essential that
every expense should be avoided consistent with the efficient
conduct of government.
MONOPOLIES.
“ The practices of interstate monopolies in limiting production
in order to limit supply and charge extortionate prices should be
stopped by the Government as an unfair practice. Unfair price
fixing and hoarding for speculation should be forbidden. It will
be far better for monopolies to turn out five times ns much at 20
per cent profit than charge 100 per cent profit on one-fifth o f the
output. Even those who profit by monopoly should remember
that they themselves are the victims o f other monopolies, and
that tlieir profits would lie more valuable if their dollars had a
larger purchasing power. The Sherman antitrust law has
failed, because the Supreme Court declared that 'reasonable
restraint o f trade is not obnoxious to the statute,’ and no man
knows what a 4reasonable restraint of trade’ signifies.
m
13
“ Tlie Federal Trade Commission should have power to limit
interstate monopolies to a reasonable percentage o f profit on their
turnover, so that the public interest is preserved while not deny
ing an abundant reward to those who transact the business of the
country. I liis ims been fairly well accomplished in the Cartel
system.
P R O FIT E E R IN G .
• Ibofiteeiiug should be dealt with in the same manner by
Nations , state, and local authorities, andt public opinion should
be moused so as to xnake those guilty o f profiteering feel the disappioval ot t he public, and so that suitable remedies may be pro
vided to abate tins evil without denying the just rewards for ini
tiative and industry in commerce.
PRODUCTION---- LABOR AND CAPITAL.
. . V ]'s V/ extreme importance that production should be stimuomm w i.'V » . " 170l'les niauy faetors- It involves reasonable,
r/r' » ' l ,
1!,o-68 rl: 1
lt involv('s equally die rights o f labor,
’ management, o f capital, and of the public. Labor is both
anil is entitled to the fullest consideration.
he < a my ol labor for several reasons has been seriously im
paired minor is estimated in many lines to be from 30 to 40 per
cent below its productive capacity prior to the war, notwithstand
ing the high prices paid for labor due to the unrest of labor and
the dislocation of labor under war conditions; to die extraordi
nary prices paid during war times; to extraordinary profits
duimg wai >y die employers o f labor; due to trained men being
taken away tom the stations in which they were expert to other
more protit able lines in making war material. Readjustment is
neeued. 1his can be promoted by encouraging frank and free
discussion and arranging peaceful methods by which labor will
paitiupate in what it produces above a bare living wage. The
employee should not he regarded merely as a money-making maclune, but altogether ns a human being, entitled o f right under
dm Constitution to life, liberty, happiness, and a reasonable par
ticipation in he profits arising from labor. This policy is advis
able both for the sake o f the employer and the employee. When
the workman knows that he is working both for himself and his
emplojci in' w ill not indulge in or permit the killing o f time, the
waste of material, ot energy. Labor management and capital
should work together on the principle o f service to all mankind
along lines ol cooperation in a spirit of fellowship, sympathy, and
mutual support. It will not do in a democracy to rely solely on
the physical powers of the Government and brute force to control
human unrest. I hat remedy is a, two-edged sword, dangerous
alike to capital and to labor, and to the stability and peace of the
Government itself. The.doctrine of mere arbitrary force should
not ho seriously entertained by* thinking men who love liberrv
after the lessons o f this war.
“ Neither labor nor capital can be expected to render willing
service unless it receives adjust and satisfactory compensation.
“ To prevent strikes and lockouts, the causes should he found
and removed.
“ Increased productivity should he for the service of all, and
not exclusively or unduly for profit.
D IST R IB U T IO N .
“ Much can be done in promoting improved methods of distri
bution through improved organization, through terminal ware
houses and distributing centers and a central board of informa167473— 20545
tion through which sound advice can be given to those engaged
in the process o f distribution.
“ The improved use of warehouse receipts as a basis ot eieuic
through the expansion of the acceptance system in furnishing
credit for goods in process of actual distribution.
G OOD
ROADS.
“ The building o f hard-surfaced roads and the use of motor
trucks and automobiles is a very important part o f cheapening
the process of distribution and lowering the cost of liwug. i ne
United States should vigorously promote this development in
conjunction with the States.
LAW AND ORDER.
“ The powers o f the Government should not be subjected to
the dictation of organized minorities, whether representing
capital or representing labor or any special group, but the right
of men to organize and petition the Government should not be
'denied. The right of men to organize for collective bargaining
is a just and reasonable right which should not he interfered
with but conflicts arising between organizations of men repre
senting capital and representing labor should be adjusted by
means” provided for conciliation, mutual accommodation, and by
public opinion. In such controversies the public is entitled to a
substantial representation, so that the interests of the public
shall not he disregarded by those who are merely seeking thenown interests. A just settlement o f such disputes can be ar
rived at and is one of the great problems remaining to be solved
in a manner just to the public and to those who serve the public
alike.
SED ITIO N L A W S .
“ The existing statutes are sufficient to punish those guilty
of overt acts against the dignity of the national statutes, and
there is no need for the passage o f extreme laws based on excite
ment and fear o f bolshevism in the United States. The punish
ment of the advocacy and organization o f actual conspiracy t<>
change the forms of our Government by assassination should
he vigorously inflicted, and additional law should be provided to
cover such conspiracies, if it actually prove to he necessary. The
people o f the United States are overwhelmingly honest, loyal,
patriotic, and can be relied upon at all times to protect the
country against sedition and treason.
“ We saw during the war the best evidence of this. The only
danger was that the people themselves might go too far and
act on suspicion in dealing with the ignorant and thoughtless
who exercised the American privilege of occasionally indulging
in foolish speech.
“ It has taken a long time to build up our great Government,
based on its ideals of liberty, -justice, and humanity, and the
people o f the United States will not permit any man or set of
men by violence arid force to tear down constitutional Govern
ment in America. Law and order must lie and will be rigidly
enforced. It can be and should be enforced without extreme
sedition laws which might destroy liberty and break down free
dom o f speech and freedom of the press. Ignorance should be
controlled by education where possible, and force should only
be used where milder remedies fail.
“ Our Constitution provides a peaceful, reasonable way for
its amendment, and tl^pse who by organized Societies are secretly
engaged in advocating the overthrow of our Government and
107473— 2054.’.
social institutions by tire and sword should be treated as guilty
o f criminal conspiracy and sedition.
“ It is my opinion that political prisoners guilty of no overt
criminal act should be released immediately and all others
brought to summary trial and not subjected to indeterminate
imprisonment awaiting trial.
9
CON SE RVATIO N .
“ The great policy of the conservation of our natural re
sources is another means by which the high cost of living can
be abated by increasing production through the use o f these
gioat natuial resources. It should be vigorously maintained
itnd extended to bring into use these values.
UN ITED
ST A T E S
BONDS.
1 lie United States bonds which were sold to the people under
the label ty loan and Victory loan campaigns ought to be brought
, l)a' ’ and this can be done by insisting upon lower rates
of legal interest through the Federal reserve banks and through
the menibei banks and forbidding the high usurious rates on
the stock exchanges— which run up to 30 per cent on call
loans—which have the effect of raising the commercial rates
throughout the United States. Even the reserve banks under
this influence raised rates to 6 and 7 per cent. It logically fol
lows that United States bonds bearing moderate rates are dis
credited and brought below par, when contrasted with very
high commercial rates, and when banks and citizens borrowing
on 4j per cent Government bonds are charged 6 per cent for
credits. I f government bonds plus the credit o f a citizen or
bank are not entitled to credit at the rate o f interest the Government bond hears, it need not surprise (he country if the bonds
sell for a 10 per cent discount.
Bor 50 years before the war the normal rate o f interest in
France and Belgium was 3 per cent. In Great Britain the ac
ceptance rate during the war was only 3* per cent. United
States bonds bearing 2 per cent, with the circulation privilege,
have been selling at par for years.
POPUI*VR
GOVERN M EN T.
1he policy of the Democratic Party in promoting popular
government should be steadily adhered to in order that the
sovereignty vested in the people of the United States may have
a concrete mechanism through which it may exercise the gov
erning power. Tiie popular-government process is o f the great
est importance to accomplish this and to enable the people to so
control the Government that it may function in their interest
and be comparatively free from the organized selfishness that
is continually exerting itself to lay its hands upon the govern
ing powers o f the people in a thousand crafty ways.
CLOTU RE
in
U N ITE D
states
senate
.
“ 10ven now a majority o f the people’s representatives in the
United States Senate can not control the Seriate because o f its
minority serving rules that permits a minority to control its*
acts. Unqualified cloture or ‘ the right to move the previous
question ’ is a reform absolutely necessary to deprive the special
interests of undue power In the people’s Senate. It ought to be
demanded by the people.
IN IT IA T IV E AND REFEREND U M .
“ You have seen in Oklahoma the value of the initiative and
referendum, which has now been adopted bv more than °0
167473—20545
16
States, including such Commonwealths as Massachusetts, Ohio.
California, Mississippi, and Missouri. This law puts the powers
of government into the hands of the people and enables them to
initiate any law they do want and veto any law they do not
want.
“ The primary Jaic, the short ballot, the preferential ballot,
the corrupt practices prevention acts are essential in preventing
organized minorities and plutocratic influences, through ma
chine-rule methods, getting control o f the governing power.
“ The publicity pamphlet issued by the Government to each
citizen giving the argument for and against candidates and pub
lic measures is necessary for the information of tin* citizen that
he may vote intelligently and escape the undue influence of the
press columns too largely controlled by selfish interests.
“ When these processes o f popular government shall have
been perfected and the people are in complete control of their
own Government, the powers o f monopoly and of profiteering
can be effectively controlled and the high cost of living re
duced. When this is accomplished we shall have had an answer
to Lincoln’s great prayer that ‘A Government o f the people,
for the people, and by the people should not perish from the
earth.’
“ To accomplish these great ends the liberal elements of
America should unite.
“ It will surely be conceded by thoughtful and just men that
the Democratic Party is very substantially controlled by the
progressive and liberal elements o f the country, and that the
Republican Party can not hope to make itself the liberal party,
of America. We, therefore, have a just right to appeal to Pro
gressive Republicans and liberal men of other parties to co
operate with the Democratic Party. We have a right to invite
them to join us on terms o f equality in order that the progres
sive elements o f the Nation through the Democratic Party may
control the laws of the country along progressive and liberal
lines. I f this cooperation can be accomplished, the liberal
elements o f America will be able to control the Government
in the election of 1920, and the prosperity which has been
brought about under the liberal and progressive statutes of the
last six years will be continued and improved upon.
“ Those who love democratic and progressive ideals, who love
the common good, who worship liberty, justice, and humanity
should do so ‘ in spirit and in truth,’ and not be diverted by
partisan pride, far less by sordid or selfish motives, from faith
ful service to the great cause.
“ Hundreds of thousands of progressive men affiliated with
the Republican Party in former elections believe in our ideals,
and reluctantly follow the reactionary leaders who are con
tinually protecting or favoring monopoly. These progressive
citizens belong with us. They can be made to know that their
ideals can best be obtained through the Democratic Party.
“ The just solution o f our vital domestic problems require pro
gressive citizens to unite. I appeal to you to lay aside all
partisan bitterness and invite to your support forward-looking
citizens of other parties. Let us work harmoniously together
in promoting social and industrial justice and human happiness.
1G7173— 20315
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