The Mason City Globe-Gazette from Mason City, Iowa on April 3, 1936 · Page 3
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April 3, 1936

The Mason City Globe-Gazette from Mason City, Iowa · Page 3

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Friday, April 3, 1936
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MASON CITY GLOBE-GAZETTE, APRIL 3 Bl 193G THREE I. BIERMANN KEYNOTER AT DEMOCRATIC STATE CONVENTION URGES CAMPAIGN TO BE FOUGHT ON RECORD OF PARTY Claims Administration Has Restored Faith in Form of Government. Following Is tile complete text of the keynote address of Representative Fred Biermatin of the fourth congressional district to the democratic state convention: Mr. Chairman: I thank you and the other members of the democratic state central committee for the honor you have conferred upon me. It is a great pleasure to look out onto this splendid audience and to see in the eyes of thoughtful, patriotic men and woman pride in the accomplishments of the past three years, 'zeal for this campaign, and confidence in the future of our republic under the leadership of Franklin D. Roosevelt and a democratic administration. The past three years have been packed with big events. The program to deal with the wreck and ruin that had overwhelmed this country has been studendous. It. is the simplest kind of justice that the democratic party should be judged on that record. We should not be allowed to escape from that record if we would. And we would not if we could. Let us insist that this campaign be fought on that record. Let us not be turned aside. In the words of Abraham Lincoln, "Let us not be slandered from our duty by false accusations against us." Tribute to Voters. Before we discuss the record. I pay my highest tribute of respect and admiration to those hundreds of thousands of independent Voters and republicans who made the victories of 1932 and 1934 possible. Without them, those victories would have been defeats. To sever political ties, years old. sometimes genera- tions'old, required the noblest kind of patriotism and. the finest kind of moral courage. I am reminded of the words of Edmund Burke. They are as true now as they were 150 - years ago: "When parties change their principles, patriots change their parties." All honor to these men and women who arrayed themselves under the democratic banner to rescue our country from economic ruin and possible revolution. I earnestly hope that this record, which they have made possible, has been so pleasing to them that they will abide with us. · We have welcomed them · to our, , ranks and to our councils. With i their continued aid, the great program for economic and social just can be carried forward to triumphant conclusion. The humanitarian purposes that have inspired much of the Roosevelt activities have made special appeal to the hearts and minds of the women of America. They have seen and have applauded the purpose to rescue the unfortunate, to provide wholesome surroundings for children and young people, and altogether to make America a better place in which to live, and in which to rear families. We ask the womanhood of America to continue its support in order that humanitarian progress may not be arrested by those who contend that the improvement of American home surroundings is not a proper subject for federal legislation. Praises Young Demos. And I cannot help but compliment another group that has contributed greatly to the victories, the Young Democratic clubs. They have directed the attention of young people to their duty to take a thoughtful interest and a patriotic part in politics. The Young Democrats' -have done valiant service for the great program we call the "new deal." The courage, the directness and the frankness of the new deal appeal to young people, unfettered by years of political habit. The Young Democrats have come into political activity as the supporters of great ideals. I pray them that they continue during their lives to be devoted to high ideals of politics and of government. In a short time, the destiny of the democratic party will be in their charge. May they keep it loyal and true to great principles of government. May they keep it free from domination by selfish groups on the one hand and by mobs led by clever demogogs on the other. And now for the record, on which this election should turn. In considering that record we ask the public to have in mind three questions: (1) What, was the situation that c o n f r o n t e d this administration March 4, 1933? (2) What have we done to meet that situation? and (3) What will our critics undo if they return to power? tivities of the Reconstruction Finance corporation were promptly expanded and from March, 1933, to February, 1936, the RFC assisted banks with loans of $6,531,956,374. The emergency banking act of 1933 and the banking act of 1935 put the banking system of the United States onto the.soundest basis in its history. That fact is attested by the banks' repayment already of .$2,965,621,228 of the loans advanced to them since March, 1933. The Federal Deposit Insurance corporation was organized. It was the first effort ever made by our government to protect the savings of the American people. Its success is shown in an increase of six billion dollars in the bank deposits of our country and in the now universal confidence in our banks. These acts are monuments to the sound business policies of this administration. Their value to bankers, to depositors, and to the business people of our country cannot be measured. We challenge our critics to name one of our banking laws which they would repeal. We challenge comparison of these three years of democratic rule with the last 12 years of republican rule as they have affected the banking situation in America. BANKING SYSTEM In the 12 republican years ending March 4, 1933, more than 10,000 banks had failed in the United 'States. In one year alone 2.294 closed their doors. Our banking system had collapsed and had carried with it the life savings of millions of Americans, many of whom are today In want through no fault of their own. The banking collapse had wrecked thousands of businessmen. Commercial credit, had dried up and confidence in banks hnd ceased to exist. Financial anarchy prevailed. The first official act of the Rouse- vclt administration was to close all the banks in the country until they could reopen with good assurance that they would stay open. The ac- INVESTMENTS For many years the fraudulent sale of stocks and bonds had gone on unrestrained by the republican administrations. No Iowa community escaped the ravages of these grafters who bilked our citizens of their savings. Few Iowa banks escaped the purchase of worthless stocks and bonds, whose purchase was oftimes encouraged or even demanded by the state banking department or the national banking department under republican administration. The Roosevelt administration gave the country the securities act of 1933 change act and the securities ex- of 3934. which have put an end to these exploitations and have curbed fraudulent manipulations of the stock exchanges Have these anti-stealing laws hurt honest business? Let the record answer. In the first nine months of 1930, more than twice as many dollars of new securities were issued as during the entire year 1932. The Roosevelt administration is the ·friend of honest business. It is the enemy of fraudulent business and proooses to continue to be. Which of these anti-graft acts would our critics repeal? settle international difficulties with wholesale slaughter. This administration wants peace. It has announced the policy of the "good neighbor," and it is practicing that policy. It has taken effective measures to link together the peace loving peoples of the north and south American continents. The congress has passed neutrality laws to keep us out of entanglement in future conflicts. The state department has achieved great success among great difficulties in its efforts to improve our relations with many countries. It is pressing for economic stability as the surest basis for peace. But let us not deceive ourselves. The question of our entrance into another war, if one comes, ia going to be decided by the American people themselves. Let us dedicate America to peace. Let us have peace at home and let us contribute to peace abroad. And let us determine now that if war comes in Europe, we shall stay out of it, even though the price we shall have to pay may be the utmost hard times and the most costly dislocation of our economic system. .stablished the CCC camps, which lave furnished employment to hun- Ireds of thousands of young men and war veterans, who have coti- ributed $25.00 each month to the upport of their dependents. Such a program had never been dreamed f by any administration before this me. We have extended aid to needy and deserving young people who de- rire to continue their education. More than 103 thousand such students have been given aid at one HOME LOANS BUSINESS FAILURES There appears to be a nationwide propaganda to scare business. The scare'cannot-be founded on facts. I say to you .that there is not one kind of legitimate business in this republic that has not been improved by the acts of this democratic administration. The record shows it beyond cavil. In 1932. there were 31,822 commercial failures in the United States. In 1935, there were only 12,185. Every daily newspaper tells of increased earnings and of bigger and better business. I ask any businessman in Iowa if he would exchange Through all the efforts of this administration may be seen as a principal purpose the desire to help the mass of our citizens, the "average" man and woman. Loans to home owners are an example. Hundreds of thousands of American home owners, thrown out of work by the hard times of the republican administrations, or reduced circumstances by investment in fraudulent stocks and bonds, were about to lose their homes when this administration came into power. The Home Owners Loan corporation was created to help them. In the 30 months since its creation, it has ma.de loans to more than a million borrowers, most of whom otherwise would have lost their homes by foreclosure. Among these million borrowers, foreclosure has been taken against less than 1-3 of 1 per cent. Not only did the home owners themselves benefit by this progress, but the state, county and municipal governments have benefited to the extent of more than 225 million dollars in delinquent taxes, which were paid in these transactions. Iowa home owners have more than 19,000 of these loans amounting to more than $37.000,000. The federal housing act has supplemented the HOLC and has created business and employment in every county in Iowa. It was passed in tie summer of 1934. Its benefits are indicated by the fact that building permits for residences in the last three months of 1935 increased 250 per cent over the last three months of 1934. What fault do our critics find with that program? Was it wrong to save the home American families? There has been no scandal or sus- licion of scandal on Washington in hese crowded years. They have criticized the secretary of the inter- or, Mr. Ickes. for his administra- ion of the PWA, but his bitterest enemies have admitted his honesty. They have denounced Harry Hopkins, but they have never accused him of stealing. Not so long ago, another administrator had a secretary of the interior, Albert Fall, vho was sent to the penitentiary "or attempting to steal the nation's birthright. There has been no Fall r Forbes, or Daugherty. or Jesse Smith or Gaston Means in the loosevelt administration. There lave been mistakes, but they have been honest mistakes. SOCIAL SECURITY 1936 business of 1932. conditions for those FOREIGN TRADE Every sound thinker knows that America can never have the fullest employment of labor, the greatest business activity, nor the fullest measure of fai-m prosperity until our foreign trade has been restored. That trade was wrecked by the narrow, restrictive policies of preceding administrations and by the utter stupidity of that criminal folly, the Hawley-Smoot tariff of 1930. In 1929, our foreign trade was 59,500,000.000. In 1932, it was only 53,100,000,000. Thomas Lament, President Hoover's secretary of commerce, said that the loss of that 56,100,000,000 of foreign business caused the unemployment of more than three million American workers. Those three million unemployed, with their families, became poor customers for Iowa ham, bacon, pork chops, beef steak and butter. Their decreased consumption contributed substantially to cause the surpluses that wrecked the prices of Iowa farm products. The rebuilding of foreign trade is a slow and laborious process, but it is going on successfully.. In 1935, it was 51,180,633,142 more than it was in the last year of the Hoover administration. Would our critics destroy that increased business and throw out of'work those engaged in i t ? A few years ago, foreign countries used to buy from us, in pork and lard, the equivalent of 17.000,000 hogs annually. In 1932. their purchases had been reduced to the equivalent of 3,000,000 hogs. The Roosevelt administration proposes to restore as much of that business as possible. Trade agreements have been made with a number of countries that will eventually greatly expand the foreign consumption of American farm products. The agreement with Switzerland is typical, both of the situation that confronted us and of the remedy applied. Switzerland used to buy 90 per cent of her lard from the United States. Exasperated by the Hawley-Smoot tariff, Switzerland hart ceased to buy a single pound of American lard. Under the recent agreement, she agrees to buy again 90 per cent of her Inrd from u.=. · NO CAPITAL SCANDAL AID TO AGRICULTURE Am I at all inaccurate when I say that the republican party has never done anything effective for .he good of Iowa agriculture? It las crucified agriculture on the cross of the high, so-called "protec- ive tariff." When the administra- :ion of President Harding took over tlie government from a democratic administration, agriculture was at :he peak of its prosperity. During the succeeding 12 years of the republican administrations, it was reduced step by step to the lowest depths of adversity. In those 12 years, three tariff laws were passed, each one higher than its predeces- or. Each higher tariff law was followed prices. followed in some cases by higher prices on the things the farmer had to buy. Each tariff caused retaliation by foreign countries, which contracted and finally almost destroyed the foreign market in which the farmers of America disposed of their surplus products. Finally, after the most monstrous of all tariffs, the ,Hawley-Smoot tariff, the farmers' surplus stayed at home and the result was two-cent hog and eight-cent corn. , Acted in Earnest. History will record, that no -ther administration ever acted HO earnestly, so effectively in the farmers' behalf as has this very Rousevclt administration. On March 4, 1933, 250,000,000 American farms were mortgaged. Five hundred thousand of them were in imminent danger of foreclosure. The Federal Land bank, set up by the last democratic administration, had ceased to function. In 1932, when it was most needed, it loaned only 527,000,000 in the entire United States. What did we do about that situation? We promptly expanded the activities of the Federal Land banks. Their rates of 5 per cent and 6 per cent were lowered to \\'~ per cent, 4 v, per cent and for this current year to 3',i per cent. There is no similar type of loan made by any jovernment land bank in all the world at so low a rate of interest, n 1932, the last Hoover year, at interest rates then prevailing and at irices then prevailing-, it took 2,174 jushels of corn or 70 220-pound hogs .0 pav the interest on a $10,000 Federal Land Bank loan. In 1935. it interest rates then prevailing and a.t prices then prevailing, it took 425 bushels of corn or 19 220-pound hogs to do the same thing. Outstanding in Iowa. There were outstanding in Iowa on March 7, 1936, 51.507 govern- nent loans and they total .?257.4.13... iOO. That is an average for each Iowa county of more than 500 loans .nd more than ?225,000,000. Of this tremendous sum. four-fifth was advanced since the Roosevelt admin- stration came into power. I ask you Tom your own experience since the dark days of 1932, how many Iowa farmers would have been dispossessed of their homes if the Roosevelt administration ha.d not come nio power? If the Federal Land banks had loaned only 527,000.000 in 1933 and only 527,000,000 in 1934, ho'w many thousands of Iowa farmers would have been foreclosed? Not only has this administration made real .estate loans at the lowest rate in the world, but it. provided money at low rates for seed and feed and for the ordina.ry production processes on the farm. It has provided money for farm co-operatives at low rates. quickly with lower farm And each high tariff was CORN LOANS Not so many years ago when com reached a very low figure, the republican .secretary of agriculture offered as his cure for the situation that Iowa farmers burn their com for fuel. In fall of 1932, thousands of bushels of Iowa corn were sold for 7 and 8 cents a bushel. This democratic administration had not been in power long until it was lending farmers 45 cents a bushel on their com, sealed in thedr own cribs, and kept on their own, farms. Permit me to recall an instance. In 1933. when corn was selling at 20 cents a bushel, a Cerro Gordo county farmer with Mite to pay and supplies for his family to buy, had 1,000 bushel of corn in his crib. If ho had sold it at 20 cents a bushel, he would have received ?320 and he would have had only $320 with, which to pay Uie merchant and the doctor and the dentist and to buy from the businessmen of his community. But the government loaned him 45 cents a bushel on his corn, in his own crib, on his own farm. Then he had 5720 with which to pay his obligations and to trade with his merchants. When he came to sell his corn, he received 70 cents a bushel, or S1.120. This one Iowa farmer on one transaction with the Roosevelt administration had made $800. And not only had he profited, but the business and professional men of this community had profited. Multiply that instance by thousands and you have a picture of the benefit this administration's corn loans conferred upon Iowa fanners and upon Iowa business and professional people. Burrow on Corn. In 1933, the corn farmers of this country borrowed .?120.66'l,3 90.24 at 45 cents a bushel. Evory cent of that money has been repaid. In 1934. they borrowed .'{4,323,684.68 at 55 cents a bushel. Every cent of that lias been repaid. Never in American history has there been another administration that has done that sort of practical tiling for Iowa farmers. T h e Roosevelt administration was confronted with two agricultural problems; First, to provide credit in a hurry at low rates of interest. That was done efficiently and successfully. The second problem was to raise the prices of farm commodities. That was the job on which the Hoover farm board hud failed so miserably and had squandered :i half billion dollurs. No action by individual farmers, no action by individual states could hope to deal with the problem of over production of farm products. Only the national government could provide the necessary national plan for united action. Th;it was done in. the agricultural adjustment act. You know of its success, but let. me remind you of some of the official figures. On March 15, 1933, the average price received by Iowa farmers for corn was 13 cents a bushel, for hogs S3.20 a hundredweight, for butter 17 cents a pound, for eggs S'.i cents a dozen. On December 15. 1935, they received 46 cents for corn. .SS.60 for hogs, 33 cents for butter and 26 cents for eggs. Restricted to Demand. The AAA proposed to do for the farmers what any factory would nave done for itself in Hie face of a declining market; it restricted the production to fit the demand. But not only did the administration give the farmers a plan for businesslike curtailment of production, but by putting people to work and improving business, it expanded home consumption. The result has been that in less than three years, the American farmers have been advanced from the depths of depression a long way on their road back to the prosperity which they deserve. Up until December 31, 1935, Iowa farmers had received in benefit payments the stupendous sum of $93,292.030.60. That was spending government money in Iowa, for lowans, where lowans could see it. The supreme court invalidated Hie AAA. Congress promptly appropriated money to finish the payments still due on the 1935 contracts. More than 22 million dollars will yet be paid to Iowa farmers out of that appropriation. Benefits Small Part. But the benefit payments made to reward farmers who reduce;! their production and thereby made the AAA program possible, these were by far. the smaller part of t h e farmers' gain. Their principal gain was the increase in the prices of the products they sold. In the last year of the Wilson administration, the total gross income of American farmers was $13.600,000.000. In the last year of the Hoover administration, it had fallen to .f5.300.000.000. That difference of $8.300,000,000 meant the ruin of hundreds of thousands of Ameriran farmers, t h e In administering that program, it is od and believed thai ruinous farm surpluses will be avoided. Its enactment again demonstrates that this administration has the welfare of agriculture as its principal con- ern. In 1932. I stated scores of times that not one farmer in the fourth Iowa district would make a single dollar that year, figuring his investment and overhead. That, statement has never been called into question to this day, so far as T know. Today farmers are making money in every county in Iowa. Iowa business and professional men are making money, because the Roosevelt policies have made it possible for their farmer customers to bring cash into the cities and towns of this state. At la.it, Iowa farmers have "a place in the sun" and they are going to keep it. so lung as thi sadministra- tion is in power. And we have confidence, so far as Iowa is concerned, that the farmers ai-e going to see to if that the Roosevelt administration continues in power. THE PUBLIC DEBT foreclosure of tens of thousands of American farms--while the Hoover administration did not one effective thins; to avert the catastrophe or to rescue is victims. That difference of eight billion dollars in the farmers' income ruined thousands of businessmen in cities and towns such as we "nave in Iowa, whose prosperity rises and falls precisely with that of farmers. By 1035. the RTOS-: income of American fanners, which hnd sunk to .55.300.000.000 under Hoover, had ·isen to $8,110.000,000 under Frankin D. Roosevelt. The farmer has money again. The merchant and the lawyer, the doctor and tile dentist who had sunk into the mire with the farmers, they too. have money and the best business in many years. Is this administration dangerous to bus- ness? Let the record of business the past three years in any town in Iowa answer that question. SOIL CONSERVATION Your congress has devised, a successor to the A. A. A., the Soil Conservation and Domestic Allotment Act. In that program, farm land will be taken out of production of crops and put into production of fertility They say that we have spent too much mctioy. One reason why that appeals to us iowa,ns is that we wore not used to seeing the federal government spend money in Iowa.. We have been content "with reading about expenditures on the Atlantic seaboard. In the past three years, for the first time, lowsuis have seen t_he federal government spend money in Iowa for the good of lowans. The World war increased our debt 24 billion dollars. Did any one say it was costing too much to kill people in 1917 and 1918? Did anyone say, "we must stop killing people because it is too expensive?" No, the. universal cry was that we should continue in the killing business, regardless of cost, until we had killed enough to win the victory. During the past three years we lave been engaged in a great war on a hundred economic fronts. We lave been engaged in a great war not only to rescue 130,000,000 people from the depths of depression, but we have been engaged in a gigantic struggle to destroy the causes of these disasters, lest they again bring us economic wreck and ruin at .some future date. In this great peace-time struggle, we have Increased the public debt, not 24 bil lion but 9 billion. The Hoover administration increased the public, debt !O billions. In those disastrous four years, while the debt was increasing 5 ' = billion, the wealth of the nation decreased 114 billion--and more "' '" '0 billion of it was in the val" farms. The Ho" increased thp nerican ration Ulion. We have enacted railroad pension legislation that heretofore couldn't even get a hearing in congress. No other administration in all history has dealt with the problems of labor with as much sympathy as has been given to them the past threi years. We have insisted that, so far as the national laws can affee the situation, labor must have good working conditions, reasonable hours and fair pay. In 1935, we passed the social security act. tinder it the federal government gives aid to the dependent aged, the blind, dependent children, maternal and child welfare, public welfare service and vocation rehabilitation. Under it a system of unemployment insurance is set up, providing for contributions by employer and employe to lay something aside against "the rainy day" of unemployment and old age. Some say we have not gone far enough. To them we answer that no other government in all the world has ever attempted so much at one time. Others say that this is socialism or communism. To them we answer, "if this be socialism or communism, so is the Sermon on the Mount, for the principles involved are identical." RELIEF OF DISTRESS The problem of more than fourteen million unemployed confronted this administration three years ago. To combat it, nationwide agencies had to be set up in a hurry. They had no experience to guide them. They entered a new and unexplored field of federal activity. Errors in policy and mistakes in spending! were inevitable. J Improved business conditions the past three years have given employment to at least five million persons, but there are still millions of persons unemployed. Probably the unemployed will be with us for years to come. One modern invention after another makes it possible for a few people to do the work that formerly required many persons. Today government agencies are supplying work for 3.800,000 persons. Local and state relief are caring for 1,500.000. Each succeeding year of the Roosevelt administration the problem has been dealt with more efficiently and more economically, and the appropriation for next year's relief will be the lowest in four years. AID TO YOUTH PEACE POLICY The American people want, peace. They abhor the barbarity of war and the stupidity of attempting to I One of t h e tragedies ot the dc- I [iression was the unemployed young ! people. Reaching working ages, there was nothing for them to do and adverse circumstances compell- ! ed them to languish in idleness. W e )

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