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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 o