Social Insurance Movement
TR addressing a campaign rally during the 1912 campaign.
Soundclip of TR
campaigning for the Progressive Party (RealAudio format).
Sound clip courtesy of Dr. Maurice Crane, Vincent Voice Library, Michigan State University.
See silent movie clips of TR campaigning in
1912 in Fargo, ND--September 1912
(Clips in MPEG format.) Video clips courtesy of the Library of Congress.
MPEG Clip #1 (27 mb file size)
MPEG Clip #2 (18 mb file size)
Before the Convention of the National Progressive Party in Chicago, August, 1912
The prime need today is to face the fact that we are now in the midst of a great economic evolution. There is urgent necessity of applying both common sense and the highest ethical standard to this movement for better economic conditions among the mass of our people if we are to make it one of healthy evolution and not one of revolution. It is, from the standpoint of our country, wicked as well as foolish longer to refuse to face the real issues of the day. Only by so facing them can we go forward; and to do this we must break up the old party organizations and obliterate the old cleavage lines on the dead issues inherited from fifty years ago. Our fight is a fundamental fight against both of the old corrupt party machines, for both are under the dominion of the plunder league of the professional politicians who are controlled and sustained by the great beneficiaries of privilege and reaction. How close is the alliance between the two machines is shown by the attitude of that portion of those Northeastern newspapers, including the majority of the great dailies in all the Northeastern cities--Boston, Buffalo, Springfield, Hartford, Philadelphia, and, above all, New York--which are controlled by or representative of the interests which, in popular phrase, are conveniently grouped together as the Wall Street interests. The large majority of these papers supported Judge Parker for the Presidency in 1904; almost unanimously they supported Mr. Taft for the Republican nomination this year; the large majority are now supporting Professor Wilson for the election. Some of them still prefer Mr. Taft to Mr. Wilson, but all make either Mr. Taft or Mr. Wilson their first choice; and one of the ludicrous features of the campaign is that those papers supporting Professor Wilson show the most jealous partisanship for Mr. Taft whenever they think his interests are jeopardized by the Progressive movement-that, for instance, any Electors will obey the will of the majority of the Republican voters at the primaries, and vote for me instead of obeying the will of the Messrs. Barnes-Penrose-Guggenheim combination by voting for Mr. Taft. No better proof can be given than this of the fact that the fundamental concern of the privileged interests is to beat the new party. Some of them would rather beat it with Mr. Wilson; others would rather beat it with Mr. Taft; but the difference between Mr. Wilson and Mr. Taft they consider as trivial, as a mere matter of personal preference. Their real fight is for either, as against the Progressives. They represent the allied Reactionaries of the country, and they are against the new party because to their unerring vision it is evident that the real danger to privilege comes from the new party, and from the new party alone. The men who presided over the Baltimore and the Chicago Conventions, and the great bosses who controlled the two Conventions, Mr. Root and Mr. Parker, Mr. Barnes and Mr. Murphy, Mr. Penrose and Mr. Taggart, Mr. Guggenheim and Mr. Sullivan, differ from one another of course on certain points. But these are the differences which one corporation lawyer has with another corporation lawyer when acting for different corporations. They come together at once as against a common enemy when the dominion of both is threatened by the supremacy of the people of the United States, now aroused to the need of a National alignment on the vital economic issues of this generation.
Neither the Republican nor the Democratic platform contains the slightest promise of approaching the great problems of today either with understanding or good faith; and yet never was there greater need in this Nation than now of understanding, and of action taken in good faith, on the part of the men and the organizations shaping our governmental policy. Moreover, our needs are such that there should be coherent action among those responsible for the conduct of National affairs and those responsible for the conduct of State affairs; because our aim should be the same in both State and Nation; that is, to use the Government as an efficient agency for the practical betterment of social and economic conditions throughout this land. There are other important things to be done, but this is the most important thing. It is preposterous to leave a movement in the hands of men who have broken their promises as have the present heads of the Republican organization (not of the Republican voters, for they in no shape represent the rank and file of Republican voters). These men by their deeds give the lie to their words. There is no health in them, and they cannot be trusted. But the Democratic party is just as little to be trusted. The Underwood-Fitzgerald combination in the House of Representatives has shown that it cannot safely be trusted to maintain the interests of this country abroad or to represent the interests of the plain people at home. The control of the various State bosses in the State organizations has been strengthened by the action at Baltimore; and scant indeed would be the use of exchanging the whips of Messrs. Barnes, Penrose, and Guggenheim for the scorpions of Messrs. Murphy, Taggart, and Sullivan. Finally, the Democratic platform not only shows an utter failure to understand either present conditions or the means of making these conditions better, but also a reckless willingness to try to attract various sections of the electorate by making mutually incompatible promises which there is not the slightest intention of redeeming, and which, if redeemed, would result in sheer ruin. Far-seeing patriots should turn scornfully from men who seek power on a platform which with exquisite nicety combines silly inability to understand the National needs and dishonest insincerity in promising conflicting and impossible remedies.
If this country is really to go forward along the path of social and economic justice, there must be a new party of Nationwide and non-sectional principles, a party where the titular National chiefs and the real State leaders shall be in genuine accord, a party in whose counsels the people shall be supreme, a party that shall represent in the Nation and the several States alike the same cause, the cause of human rights and of governmental efficiency. At present both the old parties are controlled by professional politicians in the interests of the privileged classes, and apparently each has set up as its ideal of business and political development a government by financial despotism tempered by make-believe political assassination. Democrat and Republican alike, they represent government of the needy many by professional politicians in the interests of the rich few. This is class government, and class government of a peculiarly unwholesome kind.
It seems to me, therefore, that the time is ripe, and overripe, for a genuine Progressive movement, Nationwide and justice-loving, sprung from and responsible to the people themselves, and sundered by a great gulf from both of the old party organizations, while representing all that is best in the hopes, beliefs, and aspirations of the plain people who make up the immense majority of the rank and file of both the old parties.
The first essential in the Progressive programme is the right of the people to rule. But a few months ago our opponents were assuring us with insincere clamor that it was absurd for us to talk about desiring that the people should rule, because, as a matter of fact, the people actually do rule. Since that time the actions of the Chicago Convention, and to an only less degree of the Baltimore Convention, have shown in striking fashion how little the people do rule under our present conditions. We should provide by National law for Presidential primaries. We should provide for the election of United States Senators by popular vote. We should provide for a short ballot; nothing makes it harder for the people to control their public servants than to force them to vote for so many officials that they cannot really keep track of any one of them, so that each becomes indistinguishable in the crowd around him. There must be stringent and efficient corrupt practices acts, applying to the primaries as well as the elections; and there should be publicity of campaign contributions during the campaign. We should provide throughout this Union for giving the people in every State the real right to rule themselves, and really and not nominally to control their public servants and their agencies for doing the public business; all incident of this being giving the people the right themselves to do this public business if they find it impossible to get what they desire through the existing agencies. I do not attempt to dogmatize as to the machinery by which this end should be achieved. In each community it must be shaped so as to correspond not merely with the needs but with the customs and ways of thought of that community, and no community has a right to dictate to any other in this matter. But wherever representative government has in actual fact become non-representative there the people should secure to themselves the initiative, the referendum, and the recall, doing it in such fashion as to make it evident that they do not intend to use these instrumentalities wantonly or frequently, but to hold them ready for use in order to correct the misdeeds or failures of the public servants when it has become evident that these misdeeds and failures cannot be corrected in ordinary and normal fashion. The administrative officer should be given full power for otherwise he cannot do well the people's work; and the people should be given full power over him.
I do not mean that we shall abandon representative government; on the contrary, I mean that we shall devise methods by which our Government shall become really representative. To use such measures as the initiative, referendum, and recall indiscriminately and promiscuously on all kinds of occasions would undoubtedly cause disaster; but events have shown that at present our institutions are not representative--at any rate in many States, and sometimes in the Nation--and that we cannot wisely afford to let this condition of things remain longer uncorrected. We have permitted the growing up of a breed of politicians who, sometimes for improper political purposes, sometimes as a means of serving the great special interests of privilege which stand behind them, twist so-called representative institutions into a means of thwarting instead of expressing the deliberate and well thought-out judgment of the people as a whole. This cannot be permitted. We choose our representatives for two purposes. In the first place, we choose them with the desire that, as experts, they shall study certain matters with which we, the people as a whole, cannot be intimately acquainted, and that as regards these matters they shall formulate a policy for our betterment. Even as regards such a policy, and the actions taken thereunder, we ourselves should have the right ultimately to vote our disapproval of it, if we feel such disapproval. But, in the next place, our representatives are chosen to carry out certain policies as to which we have definitely made up our minds, and here we expect them to represent us by doing what we have decided ought to be done. All I desire to do by securing more direct control of the governmental agents and agencies of the people is to give the people the chance to make their representatives really represent them whenever the Government becomes mis-representative instead of representative.
I have not come to this way of thinking from closet study, or as a mere matter of theory; I have been forced to it by a long experience with the actual conditions of our political life. A few years ago, for instance, there was very little demand in this country for Presidential primaries. There would have been no demand now if the politicians had really endeavored to carry out the will of the people as regards nominations for President. But, largely under the influence of special privilege in the business world, there have arisen castes of politicians who not only do not represent the people, but who make their bread and butter by thwarting the wishes of the people. This is true of the bosses of both political parties in my own State of New York, and it is just as true of the bosses of one or the other political party in a great many States of the Union. The power of the people must be made supreme within the several party organizations.
In the contest which culminated six weeks ago in this city I speedily found that my chance was at a minimum in any State where I could not get an expression of the people themselves in the primaries. I found that if I could appeal to the rank and file of the Republican voters, I could generally win, whereas, if I had to appeal to the political caste--which includes the most noisy defenders of the old system--I generally lost. Moreover, I found, as a matter of fact, not as a matter of theory, that these politicians habitually and unhesitatingly resort to every species of mean swindling and cheating in order to carry their point. It is because of the general recognition of this fact that the words politics and politicians have grown to have a sinister meaning throughout this country. The bosses and their agents in the National Republican Convention at Chicago treated political theft as a legitimate political weapon. It is instructive to compare the votes of States where there were open primaries and the votes of States where there were not. In Illinois, Pennsylvania and Ohio we had direct primaries, and the Taft machine was beaten two to one. Between and bordering on these States were Michigan, Indiana, and Kentucky. In these States we could not get direct primaries, and the politicians elected two delegates to our one. In the first three States the contests were absolutely open, absolutely honest. The rank and file expressed their wishes, and there was no taint of fraud about what they did. In the other three States the contest was marked by every species of fraud and violence on the part of our opponents, and half the Taft delegates in the Chicago Convention from these States had tainted titles. The entire Wall Street press at this moment is vigorously engaged in denouncing the direct primary system and upholding the old convention system, or, as they call it, the "old representative system." They are so doing because they know that the bosses and the powers of special privilege have tenfold the chance under the convention system that they have when the rank and file of the people can express themselves at the primaries. The nomination of Mr. Taft at Chicago was a fraud upon the rank and file of the Republican Party; it was obtained only by defrauding the rank and file of the party of their right to express their choice; and such fraudulent action does not bind a single honest member of the party.
Well, what the National Committee and the fraudulent majority of the National Convention did at Chicago in misrepresenting the people has been done again and again in Congress, perhaps especially in the Senate and in the State legislatures. Again and again laws demanded by the people have been refused to the people because the representatives of the people misrepresented them. Now my proposal is merely that we shall give to the people the power, to be used not wantonly but only in exceptional cases, themselves to see to it that the governmental action taken in their name is really the action that they desire.
The American people, and not the courts, are to determine their own fundamental policies. The people should have power to deal with the effect of the acts of all their governmental agencies. This must be extended to include the effects of judicial acts as well as the acts of the executive and legislative representatives of the people. Where the judge merely does justice as between man and man, not dealing with Constitutional questions, then the interest of the public is only to see that he is a wise and upright judge. Means should be devised for making it easier than at present to get rid of an incompetent judge; means should be devised by the bar and the bench acting in conjunction with the various legislative bodies to make justice far more expeditious and more certain than at present. The stick-in-the-bark legalism, the legalism that subordinates equity to technicalities, should be recognized as a potent enemy of justice. But this is not the matter of most concern at the moment. Our prime concern is that in dealing with the fundamental law of the land, in assuming finally to interpret it, and therefore finally to make it, the acts of the courts should be subject to and not above the final control of the people as a whole. I deny that the American people have surrendered to any set of men, no matter what their position or their character, the final right to determine those fundamental questions upon which free self-government ultimately depends. The people themselves must be the ultimate makers of their own Constitution, and where their agents differ in their interpretations of the Constitution the people themselves should be given the chance, after full and deliberate judgment, authoritatively to settle what interpretation it is that their representatives shall thereafter adopt as binding.
Whenever in our Constitutional system of government there exist general prohibitions that, as interpreted by the courts, nullify, or may be used to nullify, specific laws passed, and admittedly passed, in the interest of social justice, we are for such immediate law, or amendment to the Constitution, if that be necessary, as will thereafter permit a reference to the people of the public effect of such decision under forms securing full deliberation, to the end that the specific act of the legislative branch of the Government thus judicially nullified, and such amendments thereof as come within its scope and purpose, may constitutionally be excepted by vote of the people from the general prohibitions, the same as if that particular act had been expressly excepted when the prohibition was adopted. This will necessitate the establishment of machinery for making much easier of amendment both the National and the several State Constitutions, especially with the view of prompt action on certain judicial decisions--action as specific and limited as that taken by the passage of the Eleventh Amendment to the National Constitution. We are not in this decrying the courts. That was reserved for the Chicago Convention in its plank respecting impeachment. Impeachment implies the proof of dishonesty. We do not question the general honesty of the courts. But in applying to present-day social conditions the general prohibitions that were intended originally as safeguards to the citizen against the arbitrary power of Government in the hands of caste and privilege, these prohibitions have been turned by the courts from safeguards against political and social privilege into barriers against political and social justice and advancement. Our purpose is not to impugn the courts, but to emancipate them from a position where they stand in the way of social justice; and to emancipate the people, in an orderly way, front the iniquity of enforced submission to a doctrine which would turn Constitutional provisions which were intended to favor social justice and advancement into prohibitions against such justice and advancement.
We in America have peculiar need thus to make the acts of the courts subject to the people, because, owing to causes which I need not now discuss, the courts have here grown to occupy a position unknown in any other country, a position of superiority over both the legislature and the executive. Just at this time, when we have begun in this country to move toward social and industrial betterment and true industrial democracy, this attitude on the part of the courts is of grave portent, because privilege has intrenched itself in many courts, just as it formerly intrenched itself in many legislative bodies and in many executive offices. Even in England, where the Constitution is based upon the theory of the supremacy of the legislative body over the courts, the cause of democracy has at times been hampered by court action. In a recent book by a notable English Liberal leader, Mr. L. T. Hobhouse, there occurs the following sentences dealing with this subject:
"Labor itself had experienced the full brunt of the attack. It had come, not from the politicians, but from the judges; but in this country we have to realize that within wide limits the judges are in effect legislators, and legislators with a certain persistent bent which can be held in check only by the constant vigilance and repeated efforts of the recognized organ for the making and repeal of law."
It thus appears that even in England it is necessary to exercise vigilance in order to prevent reactionary thwarting of the popular will by courts that are subject to the power of the Legislature. In the United States, where the courts are supreme over the Legislature, it is vital that the people should keep in their own hands the right of interpreting their own Constitution when their public servants differ as to the interpretation.
I am well aware that every upholder of privilege, every hired agent or beneficiary of the special interests, including many well-meaning parlor reformers, will denounce all this as "Socialism" or "anarchy"--the same terms they used in the past in denouncing the movements to control the railways and to control public utilities. As a matter of fact, the propositions I make constitute neither anarchy nor Socialism, but, on the contrary, a corrective to Socialism and an antidote to anarchy.
I especially challenge the attention of the people to the need of dealing in far-reaching fashion with our human resources, and therefore our labor power. In a century and a quarter as a nation the American people have subdued and settled the vast reaches of a continent; ahead lies the greater task of building upon this foundation, by themselves, for themselves, and with themselves, an American common wealth which in its social and economic structure shall be four square with democracy. With England striving to make good the human wreckage to which a scrapheap scheme of industrialism has relegated her, with Germany putting the painstaking resources of an Empire at the work of developing her crafts and industrial sciences, with the Far East placing in the hands of its millions the tools invented and fashioned by Western civilization, it behooves Americans to keep abreast of the great industrial changes and to show that the people themselves, through popular self-government, call meet an age of crisis with wisdom and strength.
In the last twenty years an increasing percentage of our people have come to depend on industry for their livelihood, so that today the wage-workers in industry rank in importance side by side with the tillers of the soil. As a people we cannot afford to let any group of citizens or any individual citizen live or labor under conditions which are injurious to the common welfare. Industry, therefore, must submit to such public regulation as will make it a means of life and health, not of death or inefficiency. We must protect the crushable elements at the base of our present industrial structure.
The first charge on the industrial statesmanship of the day is to prevent human waste. The dead weight of orphanage and depleted craftsmanship, of crippled workers and workers suffering from trade diseases, of casual labor, of insecure old age, and of household depletion due to industrial conditions are, like our depleted soils, our gashed mountain-sides and flooded river bottoms, so many strains upon the National structure, draining the reserve strength of all industries and showing beyond all peradventure the public element and public concern in industrial health.
Ultimately we desire to use the Government to aid, as far as can safely be done, in helping the industrial tool-users to become in part tool-owners, just as our farmers now are. Ultimately the Government may have to join more efficiently than at present in strengthening the hands of the workingmen who already stand at a high level, industrially and socially, and who are able by joint action to serve themselves. But the most pressing and immediate need is to deal with the cases of those who are on the level, and who are not only in need themselves, but, because of their need, tend to jeopardize the welfare of those who are better off. We hold that under no industrial order, in no commonwealth, in no trade, and in no establishment should industry be carried on under conditions inimical to the social welfare. The abnormal, ruthless, spendthrift industry of establishment tends to drag down all to the level of the least considerate.
Here the sovereign responsibility of the people as a whole should be placed beyond all quibble and dispute.
The public needs have been well summarized as follows:
To the first end, we hold that the constituted authorities should be empowered to require all employers to file with them for public purposes such wage scales and other data as the public element in industry demands. The movement for honest weights and measures has its counterpart in industry. All tallies, scales and check systems should be open to public inspection and inspection of committees of the workers concerned. All deaths, injuries, and diseases due to industrial operation should be reported to public authorities.
To the second end, we hold that minimum wage commissions should be established in the Nation and in each State to inquire into wages paid in various industries and to determine the standard which the public ought to sanction as a minimum; and we believe that, as a present installment of what we hope for in the future, there should be at once established in the Nation and its several States minimum standards for the wages of women, taking the present Massachusetts law as a basis from which to start and on which to improve. We pledge the Federal Government to an investigation of industries along the lines pursued by the Bureau of Alines with the view to establishing standards of sanitation and safety; we call for the standardization of mine and factory inspection by interstate agreement or the establishment of a Federal standard. We stand for the passage of legislation in the Nation and in all States providing standards of compensation for industrial accidents and death, and for diseases clearly due to the nature of conditions of industry, and we stand for the adoption by law of a fair standard of compensation for casualties resulting fatally which shall clearly fix the minimum compensation in all cases.
In the third place, certain industrial conditions fall clearly below the levels which the public today sanction.
We stand for a living wage. Wages are subnormal if they fail to provide a living for those who devote their time and energy to industrial occupations. The monetary equivalent of a living wage varies according to local conditions, but must include enough to secure the elements of a normal standard of living--a standard high enough to make morality possible, to provide for education and recreation, to care for immature members of the family, to maintain the family during periods of sickness, and to permit of reasonable saving for old age.
Hours are excessive if they fail to afford the worker sufficient time to recuperate and return to his work thoroughly refreshed. We hold that the night labor of women and children is abnormal and should be prohibited; we hold that the employment of women over forty-eight hours per week is abnormal and should be prohibited. We hold that the seven day working week is abnormal, and we hold that one day of rest in seven should be provided in law. We hold that the continuous industries, operating twenty-four hours out of twenty-four, are abnormal, and where, because of public necessity or of technical reasons (such as molten metal), the twenty-four hours must be divided into two shifts of twelve hours or three shifts of eight, they should by law be divided into three of eight.
Safety conditions are abnormal when, through unguarded machinery, poisons, electrical voltage, or otherwise, the workers are subjected to unnecessary hazards of life and limb; and all such occupations should come under governmental regulation and control.
Home life is abnormal when tenement manufacture is carried on in the household. It is a serious menace to health, education, and childhood, and should therefore be entirely prohibited. Temporary construction camps are abnormal homes and should be subjected to governmental sanitary regulation.
The premature employment of children is abnormal and should be prohibited; so also the employment of women in manufacturing, commerce, or other trades where work compels standing constantly; and also any employment of women in such trades for a period of at least eight weeks at time of childbirth.
Our aim should be to secure conditions which will tend everywhere towards regular industry, and will do away with the necessity for rush periods, followed by out-of-work seasons, which put so severe a strain on wage-workers.
It is abnormal for any industry to throw back upon the community the human wreckage due to its wear and tear, and the hazzards of sickness, accident, invalidism, involuntary unemployment, and old age should be provided for through insurance. This should be made a charge in whole or in part upon the industries the employer, the employee, and perhaps the people at large, to contribute severally in some degree. Wherever such standards are not met by given establishments, by given industries, are unprovided for by a legislature, or are balked by unenlightened courts, the workers are in jeopardy, the progressive employer is penalized, and the community pays a heavy cost in lessened efficiency and in misery. What Germany has done in the way of old age pensions or insurance should be studied by us, and the system adapted to our uses, with whatever modifications are rendered necessary by our different ways of life and habits of thought.
Workingwomen have the same need to combine for protection that workingmen have; the ballot is as necessary for one class as for the other; we do not believe that with the two sexes there is identity of function; but we do believe that there should be equality of right; and therefore we favor woman suffrage. In those conservative States where there is genuine doubt how the women stand on this matter I suggest that it be referred to a vote of the women, so that they may themselves make the decision. Surely if women could vote, they would strengthen the hands of those who are endeavoring to deal in efficient fashion with evils such as the white slave traffic; evils which can in part be dealt with Nationally, but which in large part can be reached only by determined local action, such as insisting on the widespread publication of the names of the owners, the landlords, of houses used for immoral purposes.
No people are more vitally interested than workingmen and workingwomen in questions affecting the public health. The pure food law must be strengthened and efficiently enforced. In the National Government one department should be intrusted with all the agencies relating to the public health, from the enforcement of the pure food law to the administration of quarantine. This department, through its special health service, would co-operate intelligently with the various State and municipal bodies established for the same end. There would be no discrimination against or for any one set of therapeutic methods, against or for any one school of medicine or system of healing; the aim would be merely to secure under one administrative body efficient sanitary regulation in the interest of the people as a whole.
There is no body of our people whose interests are more inextricably interwoven with the interests of all the people than is the case with the farmers. The Country Life Commission should be revived with greatly increased powers; its abandonment was a severe blow to the interests of our people. The welfare of the farmer is a basic need of this Nation. It is the men from the farm who in the past have taken the lead in every great movement within this Nation, whether in time of war or in time of peace. It is well to have our cities prosper, but it is not well if they prosper at the expense of the country. I am glad to say that in many sections of our country there has been an extraordinary revival of recent years in intelligent interest in and work for those who live in the open country. In this movement the lead must be taken by the farmers themselves; but our people as a whole, through their governmental agencies, should back the farmers. Everything possible should be done to better the economic condition of the farmer, and also to increase the social value of the life of the farmer, the farmer's wife, and their children. The burdens of labor and loneliness bear heavily on the women in the country; their welfare should be the especial concern of all of us. Everything possible should be done to make life in the country profitable so as to be attractive from the economic standpoint and also to give an outlet among farming people for those forms of activity which now tend to make life in the cities especially desirable for ambitious men and women. There should be just the same chance to live as full, as well-rounded, and as highly useful lives in the country as in the city.
The Government must co-operate with the farmer to make the farm more productive. There must be no skinning of the soil. The farm should be left to the farmer's soil in better, and not worse, condition because of its cultivation. Moreover, every invention and improvement, every discovery and economy, should be at the service of the farmer in the work of production; and, in addition, he should be helped to co-operate in business fashion with his fellows, so that the money paid by the consumer for the product of the soil shall to as large a degree as possible go into the pockets of the man who raised that product from the soil. So long as the farmer leaves co-operative activities with their profit-sharing to the city man of business, so long will the foundations of wealth be undermined and the comforts of enlightenment be impossible in the country communities. In every respect this Nation has to learn the lessons of efficiency in production and distribution, and of avoidance of waste and destruction; we must develop and improve instead of exhausting our resources. It is entirely possible by improvements in production, in the avoidance of waste, and in business methods on the part of the farmer to give him all increased income from his farm while at the same time reducing to the consumer the price of the articles raised on the farm. Important although education is everywhere, it has a special importance in the country. The country school must fit the country life; in the country, as elsewhere, education must be hitched up with life. The country church and the country Young Men's and Young Women's Christian Associations have great parts to play. The farmers must own and work their own land; steps must be taken at once to put a stop to the tendency towards absentee landlordism and tenant farming; this is one of the most imperative duties confronting the Nation. The question of rural banking and rural credits is also of immediate importance.
The present conditions of business cannot be accepted as satisfactory. There are too many who do not prosper enough, and of the few who prosper greatly there are certainly some whose prosperity does not mean well for the country. Rational Progressives, no matter how radical, are well aware that nothing the Government can do will make some men prosper, and we heartily approve the prosperity, no matter how great, of any man, if it comes as an incident to rendering service to the community; but we wish to shape conditions so that a greater number of the small men who are decent, industrious and energetic shall be able to succeed, and so that the big man who is dishonest shall not be allowed to succeed at all.
Our aim is to control business, not to strangle it--and, above all, not to continue a policy of make-believe strangle toward big concerns that do evil, and constant menace toward both big and little concerns that do well. Our aim is to promote prosperity, and then see to its proper division. We do not believe that any good comes to any one by a policy which means destruction of prosperity; for in such cases it is not possible to divide it because of the very obvious fact that there is nothing to divide. We wish to control big business so as to secure among other things good wages for the wage-workers and reasonable prices for the consumers. Wherever in any business the prosperity of the business man is obtained by lowering the wages of his workmen and charging an excessive price to the consumers we wish to interfere and stop such practices. We will not submit to that kind of prosperity any more than we will submit to prosperity obtained by swindling investors or getting unfair advantages over business rivals. But it is obvious that unless the business is prosperous the wage-workers employed therein will be badly paid and the consumers badly served. Therefore not merely as a matter of justice to the business man, but from the standpoint of the self-interest of the wage-worker and the consumer we desire that business shall prosper; but it should be so supervised as to make prosperity also take the shape of good wages to the wage-worker and reasonable prices to the consumer, while investors and business rivals are insured just treatment, and the farmer, the man who tills the toil, is protected as sediously as the wage worker himself.
Unfortunately, those dealing with the subject have tended to divide into two camps, each as unwise as the other. One camp has fixed its eyes only on the need of prosperity, loudly announcing that our attention must be confined to securing it in bulk, and that the division must be left to take care of itself. This is merely the plan, already tested and found wanting, of giving prosperity to the big men on top, and trusting to their mercy to let something leak through to the mass of their countrymen below--which, in effect, means that there shall be no attempt to regulate the ferocious scramble in which greed and cunning reap the largest rewards. The other set has fixed its eyes purely on the injustices of distribution, omitting all consideration of the need of having something to distribute, and advocates action which, it is true, would abolish most of the inequalities of the distribution of prosperity, but only by the unfortunately simple process of abolishing the prosperity itself. This means merely that conditions are to be evened, not up, but down, so that all shall stand on a common level, where nobody has any prosperity at all. The task of the wise radical must be to refuse to be misled by either set of false advisers; he must both favor and promote the agencies that make for prosperity, and at the same time see to it that these agencies are so used as to be primarily of service to the average man.
Again and again while I was President, from 1902 to 1908, I pointed out that under the Anti-Trust Law alone it was neither possible to put a stop to business abuses nor possible to secure the highest efficiency in the service rendered by business to the general public. The Anti-Trust Law must be kept on our statute-books, and, as hereafter shown, must be rendered more effective in the cases where it is applied. But to treat the Anti-Trust Law as an adequate, or as by itself a wise, measure of relief and betterment is a sign not of progress, but of toryism and reaction. It has been of benefit so far as it has implied the recognition of a real and great evil, and the at least sporadic application of the principle that all men alike must obey the law. But as a sole remedy, universally applicable, it has in actual practice completely broken down; as now applied it works more mischief than benefit. It represents the waste of effort--always damaging to a community--which arises from the attempt to meet new conditions by the application of outworn remedies instead of fearlessly and in common-sense fashion facing the new conditions and devising the new remedies which alone can work effectively for good. The Anti-Trust Law, if interpreted as the Baltimore platform demands it shall be interpreted, would apply to every agency by which not merely industrial but agricultural business is carried on in this country; under such an interpretation it ought in theory to be applied universally, in which case practically all industries would stop; as a matter of fact, it is utterly out of the question to enforce it universally; and, when enforced sporadically, it causes continual unrest, puts the country at a disadvantage with its trade competitors in international commerce, hopelessly puzzles honest business men and honest farmers as to what their rights are, and yet, as has just been shown in the cases of the Standard Oil and the Tobacco Trust, it is no real check on the great trusts at which it was in theory aimed, and indeed operates to their benefit. Moreover, if we are to compete with other nations in the markets of the world as well as to develop our own material civilization at home, we must utilize those forms of industrial organization that are indispensable to the highest industrial productivity and efficiency.
An important volume entitled "Concentration and Control" has just been issued by President Charles R. Van Hise, of the University of Wisconsin. The University of Wisconsin has been more influential than any other agency in making Wisconsin what it has become, a laboratory for wise social and industrial experiment in the betterment of conditions. President Van Hise is one of those thoroughgoing but sane and intelligent radicals from whom much of leadership is to be expected in such a matter. The sub-title of his book shows that his endeavor is to turn the attention of his countrymen toward practically solving the trust problem of the United States. In his preface he states that his aim is to suggest a way to gain the economic advantages of the concentration of industry and at the same time to guard the interests of the public, and to assist in the rule of enlightenment, reason, fair play, mutual consideration, and toleration. In sum, he shows that unrestrained competition as an economic principle has become too destructive to be permitted to exist, and that the small men must be allowed to co-operate under penalty of succumbing before their big competitors; and yet such co-operation, vitally necessary to the small man, is criminal under the present law. He says:
"With the alternative before the business men of co-operation or failure, we may be sure that they will co-operate. Since the law is violated by practically every group of men engaged in trade from one end of the country to the other, they do not feel that in combining they are doing a moral wrong. The selection of the individual or corporation for prosecution depends upon the arbitrary choice of the Attorney-General, perhaps somewhat influenced by the odium which attaches to some of the violators of the law. They all take their chance, hoping that the blow will fall elsewhere. With general violation and sporadic enforcement of an impracticable law, we cannot hope that our people will gain respect for it.
"In conclusion, there is presented as the solution of the difficulties of the present industrial situation, concentration, co-operation, and control. Through concentration we may have the economic advantages coming from magnitude of operations. Through co-operation we may limit the wastes of the competitive system. Through control by commission we may secure freedom for fair competition, elimination of unfair practices, conservation of our natural resources, fair wages, good social conditions, and reasonable prices.
"Concentration and co-operation in industry in order to secure efficiency are a world-wide movement. The United States cannot resist it. If we isolate ourselves and insist upon the subdivision of industry below the highest economic efficiency, and do not allow co-operation, we shall be defeated in the world's markets. We cannot adopt an economic system less efficient than our great competitors, Germany, England, France, and Austria. Either we must modify our present obsolete laws regarding concentration and co-operation so as to conform with the world movement, or else fall behind in the race for the world's markets. Concentration and co-operation are conditions imperatively essential for industrial advance; but if we allow concentration and co-operation there must be control in order to protect the people, and adequate control is only possible through the administrative commission. Hence concentration, co-operation, and control are the key words for a scientific solution of the mighty industrial problem which now confronts this Nation."
In his main thesis President Van Hise is unquestionably right. The Democratic platform offers nothing in the way of remedy for present industrial conditions except, first, the enforcement of the Anti-Trust Law in a fashion which, if words mean anything, means bringing business to a standstill; and, second, the insistence upon an archaic construction of the States' rights doctrine in thus dealing with inter-State commerce--an insistence which, in the first place, is the most flagrant possible violation of the Constitution to which the members of the Baltimore Convention assert their devotion, and which, in the next place, nullifies and makes an empty pretense of their first statement. The proposals of the platform are so conflicting and so absurd that it is hard to imagine how any attempt could be made in good faith to carry them out; but, if such attempt were sincerely made, it could only produce industrial chaos. Were such an attempt made, every man who acts honestly would have something to fear, and yet no great adroit criminal able to command the advice of the best corporation lawyers would have much to fear.
What is needed is action directly the reverse of that thus confusedly indicated. We Progressives stand for the rights of the people. When these rights can best be secured by insistence upon States' rights, then we are for States' rights; when they call best be secured by insistence upon National rights, then we are for National rights. Inter-State commerce call be effectively controlled only by the Nation. The States cannot control it under the Constitution, and to amend the Constitution by giving them control of it would amount to a dissolution of the Government. The worst of the big trusts have always endeavored to keep alive the feeling in favor of having the States themselves, and not the Nation, attempt to do this work, because they know that in the long-run such effort would be ineffective. There is no surer way to prevent all successful effort to deal with the trusts than to insist that they be dealt with by the States rather than by the Nation, or to create a conflict between the States and the Nation on the subject. The well-meaning ignorant man who advances such a proposition does as much damage as if he were hired by the trusts themselves, for he is playing the game of every big crooked corporation in the country. The only effective way in which to regulate the trusts is through the exercise of the collective power of our people as a whole through the Governmental agencies established by the Constitution for this very purpose. Grave injustice is done by the Congress when it fails to give the National Government complete power in this matter; and still graver injustice by the federal courts when they endeavor in any way to pare down the right of the people collectively to act in this matter as they deem wise; such conduct does itself tend to cause the creation of a twilight zone in which neither the Nation nor the States have power. Fortunately, the Federal courts have more and more of recent years tended to adopt the true doctrine, which is that all these matters are to be settled by the people themselves, and that the conscience of the people, and not the preferences of any servants of the people, is to be the standard in deciding what action shall be taken by the people. As Lincoln phrased it: "The [question] of National power and State rights as a principle is no other than the principle of generality and locality. Whatever concerns the whole should be confided to the whole--to the General Government; while whatever concerns only the State should be left exclusively to the State."
It is utterly hopeless to attempt to control the trusts merely by the Anti-Trust Law, or by any law the same in principle, no matter what the modifications may be in detail. In the first place, these great corporations cannot possibly be controlled merely by a succession of lawsuits. The administrative branch of the Government must exercise such control. The preposterous failure of the Commerce Court has shown that only damage comes from the effort to substitute judicial for administrative control of great corporations. In the next place, a loosely drawn law which promises to do everything would reduce business to complete ruin if it were not also so drawn as to accomplish almost nothing.
As construed by the Democratic platform, the Anti-Trust Law would, if it could be enforced, abolish all business of any size or any efficiency. The promise thus to apply and construe the law would undoubtedly be broken, but the mere fitful effort thus to apply it would do no good whatever, would accomplish widespread harm, and would bring all trust legislation into contempt. Contrast what has actually been accomplished under the Inter-State Commerce Law with what has actually been accomplished under the Anti-Trust Law. The first has, on the whole, worked in a highly efficient manner and achieved real and great results; and it promises to achieve even greater results (although I firmly believe that if the power of the Commissioners grows greater, it will be necessary to make them and their superior, the President, even more completely responsible to the people for their acts). The second has occasionally done good, has usually accomplished nothing, has generally left the worst conditions wholly unchanged, and has been responsible for a considerable amount of downright and positive evil.
What is needed is the application to all industrial concerns and all co-operating interests engaged in inter-State commerce in which there is either monopoly or control of the market of the principles on which we have gone in regulating transportation concerns engaged in such commerce. The Anti-Trust Law should be kept on the statute-books and strengthened so as to make it genuinely and thoroughly effective against every big concern tending to monopoly or guilty of anti-social practices. At the same time, a National industrial commission should be created which should have complete power to regulate and control all the great industrial concerns engaged in inter-State business--which practically means all of them in this country. This commission should exercise over these industrial concerns like powers to those exercised over the railways by the Inter-State Commerce Commission, and over the National banks by the Comptroller of the Currency, and additional powers if found necessary. The establishment of such a commission would enable us to punish the individual rather than merely the corporation, just as we now do with banks, where the aim of the Government is not to close the bank, but to bring to justice personally any bank official who has gone wrong. This commission should deal with all the abuses of the trusts--all the abuses such as those developed by the Government suit against the Standard Oil and Tobacco Trusts--as the Inter-State Commerce Commission now deals with rebates. It should have complete power to make the capitalization absolutely honest and put a stop to all stock watering. Such supervision over the issuance of corporate securities would put a stop to exploitation of the people by dishonest capitalists desiring to declare dividends on watered securities, and would open this kind of industrial property to ownership by the people at large. It should have free access to the books of each corporation and power to find out exactly how it treats its employees, its rivals, and the general public. It should have power to compel the unsparing publicity of all the acts of any corporation which goes wrong. The regulation should be primarily under the administrative branch of the Government, and not by lawsuit. It should prohibit and effectually punish monopoly achieved through wrong, and also actual wrongs done by industrial corporations which are not monopolies, such as the artificial raising of prices, the artificial restriction on productivity, the elimination of competition by unfair or predatory practices, and the like; leaving industrial organizations free within the limits of fair and honest dealing to promote through the inherent efficiency of organization the power of the United States as a competitive nation among nations, and the greater abundance at home that will come to our people from that power wisely exercised. Any corporation voluntarily coming under the commission should not be prosecuted under the Anti-Trust Law as long as it obeys in good faith the orders of the commission. The commission would be able to interpret in advance, to any honest man asking the interpretation, what he may do and what he may not do in carrying on a legitimate business. Any corporation not corning under the commission should be exposed to prosecution under the Anti-Trust Law, and any corporation violating the orders of the commission should also at once become exposed to such prosecution; and when such a prosecution is successful, it should be the duty of the commission to see that the decree of the Court is put into effect completely and in good faith, so that the combination is absolutely broken up, and is not allowed to come together again, nor the constituent parts thereof permitted to do business save under the conditions laid down by the commission. This last provision would prevent the repetition of such gross scandals as those attendant upon the present Administration's prosecution of the Standard Oil and the Tobacco Trusts. The Supreme Court of the United States in condemning these two trusts to dissolution used language of unsparing severity concerning their actions. But the decree was carried out in such a manner as to turn into a farce this bitter condemnation of the criminals by the highest court in the country, Not one particle of benefit to the community at large was gained; on the contrary, the prices went up to consumers, independent competitors were placed in greater jeopardy than ever before, and the possessions of the wrong-doers greatly appreciated in value. There never was a more flagrant travesty of justice, never an instance in which wealthy wrong-doers benefitted more conspicuously by a law which was supposed to be aimed at them, and which undoubtedly would have brought about severe punishment of less wealthy wrong-doers.
The Progressive proposal is definite. It is practicable. We promise nothing that we cannot carry out. We promise nothing which will jeopardize honest business. We promise adequate control of all big business and the stern suppression of the evils connected with big business, and this promise we can absolutely keep. Our proposal is to help honest business activity, however extensive, and to see that it is rewarded with fair returns so that there may be no oppression either of business men or of the common people. We propose to make it worth while for our business men to develop the most efficient business agencies for use in international trade; for it is to the interest of our whole people that we should do well in international business. But we propose to make those business agencies do complete justice to our own people. Every dishonest business man will unquestionably prefer either the programme of the Republican Convention or the programme of the Democratic Convention to our proposal, because neither of these programmes means or can mean what it purports to mean. But every honest business man, big or little, should support the Progressive programme, and it is the one and only programme which offers real hope to all our people; for it is the one programme under which the Government can be used with real efficiency to see justice done by the big corporation alike to the wage-earners it employs, to the small rivals with whom it competes, to the investors who purchase its securities, and to the consumers who purchase its products or to the general public which it ought to serve, as well as to the business man himself.
We favor co-operation in business, and ask only that it be carried on in a spirit of honesty and fairness. We are against crooked business, big or little. We are in favor of honest business, big or little. We propose to penalize conduct and not size. But all very big business, even though honestly conducted, is fraught with such potentiality of menace that there should be thoroughgoing governmental control over it, so that its efficiency in promoting prosperity at home and increasing the power of the Nation in international commerce may be maintained, and at the same time fair play insured to the wage-workers, the small business competitors, the investors, and the general public. Wherever it is practicable we propose to preserve competition; but where under modern conditions competition has been eliminated and cannot be successfully restored, then the Government must step in and itself supply the needed control on behalf of the people as a whole.
It is imperative to the welfare of our people that we enlarge and extend our foreign commerce. We are pre-eminently fitted to do this because as a people we have developed high skill inthe art of manufacturing; our business-men are strong executives, strong organizers. In every way possible our Federal Government should co-operate in this important matter. Any one who has had opportunity to study and observe first-hand Germany's course in this respect must realize that their policy of co-operation between Government and business has in comparatively few years made them a leading competitor for the commerce of the world. It should be remembered that they are doing this on a national scale and with large units of business, while the Democrats would have us believe that we should do it with small units of business, which would be controlled not by the National Government but by forty-nine conflicting State sovereignties. Such a policy is utterly out of keeping with the progress of the times and gives our great commercial rivals in Europe--hungry for international markets--golden opportunities of which they are rapidly taking advantage.
I very much wish that legitimate business would no longer permit itself to be frightened by the outcries of illegitimate business into believing that they have any community of interest. Legitimate business ought to understand that its interests are jeopardized when they are confounded with those of illegitimate business; and the latter, whenever threatened with just control, always tries to persuade the former that it also is endangered. As a matter of fact, if legitimate business can only be persuaded to look cool-headedly into our proposition, it is bound to support us.
There are a number of lesser, but still important, ways of improving our business situation. It is not necessary to enumerate all of them; but I desire to allude to two, which can be adopted forthwith. Our patent laws should be remodeled; patents can secure ample royalties to investors without our permitting them to be tools of monopoly or shut out from general use; and a parcels post, on the zone principle, should be established.
I believe in a protective tariff, but I believe in it as a principle, approached from the standpoint of the interests of the whole people, and not as a bundle of preferences to be given to favored individuals. In my opinion, the American people favor the principle of a protective tariff, but they desire such a tariff to be established primarily in the interests of the wage-worker and the consumer. The chief opposition to our tariff at the present moment comes from the general conviction that certain interests have been improperly favored by over-protection. I agree with this view. The commercial and industrial experience of this country has demonstrated the wisdom of the protective policy, but it has also demonstrated that in the application of that policy certain clearly recognized abuses have developed. It is not merely the tariff that should be revised, but the method of tariff-making and of tariff administration. Wherever nowadays an industry is to be protected it should be on the theory that such protection will serve to keep up the wages and the standard of living of the wage-worker in that industry with full regard for the interest of the consumer. To accomplish this the tariff to be levied should as nearly as is scientifically possible approximate the differential between the cost of production at home and abroad. This differential is chiefly, if not wholly, in labor cost. No duty should be permitted to stand as regards any industry unless the workers receive their full share of the benefits of that duty. In other words, there is no warrant for protection unless a legitimate share of the benefits gets into the pay envelope of the wage-worker.
The practice of undertaking a general revision of all the schedules at one time and of securing information as to conditions in the different industries and as to rates of duty desired chiefly from those engaged in the industries, who themselves benefit directly from the rates they propose, has been demonstrated to be not only iniquitous but futile. It has afforded opportunity for practically all of the abuses which have crept into our tariff-making and our tariff administration. The day of the log-rolling tariff must end. The progressive thought of the country has recognized this fact for several years, and the time has come when all genuine Progressives should insist upon a thorough and radical change in the method of tariff-making.
The first step should be the creation of a permanent commission of non-partisan experts whose business shall be to study scientifically all phases of tariff-making and of tariff effects. This commission should be large enough to cover all the different and widely varying branches of American industry. It should have ample powers to enable it to secure exact and reliable information. It should have authority to examine closely all correlated subjects, such as the effect of any given duty on the consumers of the article on which the duty is levied; that is, it should directly consider the question as to what any duty costs the people in the price of living. It should examine into the wages and conditions of labor and life of the workingmen in any industry, so as to insure our refusing protection to any industry unless the showing as regards the share labor receives therefrom is satisfactory. This commission would be wholly different from the present unsatisfactory Tariff Board, which was created under a provision of law which failed to give it the powers indispensable if it was to do the work it should do.
It will be well for us to study the experience of Germany in considering this question. The German Tariff Commission has proved conclusively the efficiency and wisdom of this method of handling tariff questions. The reports of a permanent, expert, and non-partisan tariff commission would at once strike a most powerful blow against the chief iniquity of the old log-rolling method of tariff-making. One of the principal difficulties with the old method has been that it was impossible for the public generally, and especially for those Members of Congress not directly connected with the committees handling a tariff bill, to secure anything like adequate and impartial information on the particular subjects under consideration. The reports of such a tariff commission would at once correct this evil and furnish to the general public full, complete, and disinterested information on every subject treated in a tariff bill. With such reports it would no longer be possible to construct a tariff bill in secret or to jam it through either house of Congress without the fullest and most illuminating discussion. The path of the tariff "joker" would be rendered infinitely difficult.
As a further means of disrupting the old crooked, log-rolling method of tariff-making, all future revisions of the tariff should be made schedule by schedule as changing conditions may require. Thus a great obstacle will be thrown in the way of the trading of votes which has marked so scandalously the enactment of every tariff bill of recent years. The tariff commission should render reports at the call of Congress or of either branch of Congress and to the President. Under the Constitution, Congress is the tariff-making power. It should not be the purpose in creating a tariff commission to take anything away from this power of Congress, but rather to afford a wise means of giving to Congress the widest and most scientific assistance possible, and of furnishing it and the public with the fullest disinterested information. Only by this means can the tariff be taken out of politics. The creation of such a permanent tariff commission, and the adoption of the policy of schedule by schedule revision, will do more to accomplish this highly desired object than any other means yet devised.
The Democratic platform declares for a tariff for revenue only, asserting that a protective tariff is unconstitutional. To say that a protective tariff is unconstitutional, as the Democratic platform insists, is only excusable on a theory of the Constitution which would make it unconstitutional to legislate in any shape or way for the betterment of social and industrial conditions. The abolition of the protective tariff or the substitution for it of a tariff for revenue only, as proposed by the Democratic platform, would plunge this country into the most widespread industrial depression we have yet seen, and this depression would continue for an indefinite period. There is no hope from the standpoint of our people from action such the Democrats propose. The one and only chance to secure stable and favorable business conditions in this country, while at the same time guaranteeing fair play to farmer, consumer, business man, and wage-worker, lies in the creation of such a commission as I herein advocate. Only by such a commission and only by such activities of the commission will it be possible for us to get a reasonably quick revision of the tariff schedule by schedule--a revision which shall be downwards and not upwards, and at the same time secure a square deal not merely to the manufacturer, but to the wage-worker and to the general consumer.
There can be no more important question than the high cost of living necessities. The main purpose of the Progressive movement is to place the American people in possession of their birthright, to secure for all the American people unobstructed access to the fountains of measureless prosperity which their Creator offers them. We in this country are blessed with great natural resources, and our men and women have a very high standard of intelligence and of industrial capacity. Surely such being the case, we cannot permanently support conditions under which each family finds it increasingly difficult to secure the necessaries of life and a fair share of its comforts through the earnings of its members. The cost of living in this country has risen during the last few years out of all proportion to the increase in the rate of most salaries and wages; the same situation confronts alike the majority of wage-workers, small business men, small professional men, the clerks, the doctors, clergymen. Now, grave though the problem is, there is one way to make it graver, and that is to deal with it insincerely, to advance false remedies, to promise the impossible. Our opponents, Republicans and Democrats alike, propose to deal with it in this way. The Republicans in their platform promise all inquiry into the facts. Most certainly there should be such inquiry. But the way the present Administration has failed to keep its promises in the past, and the rank dishonesty of action on the part of the Penrose-Barnes-Guggenheim National Convention, makes their every promise worthless. The Democratic platform affects to find the entire cause of the high cost of living in the tariff, and promises to remedy it by free trade, especially free trade in the necessaries of life. In the first place, this attitude ignores the patent fact that the problem is world-wide, that everywhere, in England and France, as in Germany and Japan, it appears with greater or less severity; that in England, for instance, it has become a very severe problem, although neither the tariff nor, save to a small degree, the trusts can there have any possible effect upon the situation. In the second place, the Democratic platform, if it is sincere, must mean that all duties will be taken off the products of the farmer. Yet most certainly we cannot afford to have the farmer struck down. The welfare of the tiller of the soil is as important as the welfare of the wage worker himself, and we must sedulously guard both. The farmer, the producer of the necessities of life, can himself live only if he raises these necessities for a profit. On the other hand, the consumer who must have that farmer's product in order to live, must be allowed to purchase it at the lowest cost that can give the farmer his profit, and everything possible must be done to eliminate any middleman whose function does not tend to increase the cheapness of distribution of the product; and, moreover, everything must be done to stop all speculating, all gambling with the bread-basket which has even the slightest deleterious effect upon the producer and consumer. There must be legislation which will bring about a closer business relationship between the farmer and the consumer. Recently experts in the Agricultural Department have figured that nearly fifty per cent of the price for agricultural products paid by the consumer goes into the pockets, not of the farmer, but of various middlemen; and it is probable that over half of what is thus paid to middlemen is needless, can be saved by wise business methods (introduced through both law and custom), and can therefore be returned to the farmer and the consumer. Through the proposed Inter-State Industrial Commission we can effectively do away with any arbitrary control by combinations of the necessities of life. Furthermore, the Governments of the Nation and of the several States must combine in doing everything they can to make the farming business profitable, so that he shall get more out of the soil, and enjoy better business facilities for marketing what he thus gets. In this manner his return will be increased while the price to the consumer is diminished. The elimination of the middleman by agricultural exchanges and by the use of improved business methods generally, the development of good roads, the reclamation of arid lands and swamp lands, the improvement in the productivity of farms, the encouragement of all agencies which tend to bring people back to the soil and to make country life more interesting as well as more profitable--all these movements will help not only the farmer but the man who consumes the farmer's products.
There is urgent need of non-partisan expert examination into any tariff schedule which seems to increase the cost of living, and, unless the increase thus caused is more than countervailed by the benefit to the class of the community which actually receives the protection, it must of course mean that that particular duty must be reduced. The system of levying a tariff for the protection and encouragement of American industry so as to secure higher wages and better conditions of life for American laborers must never be perverted so as to operate for the impoverishment of those whom it was intended to benefit. But, in any event, the effect of the tariff on the cost of living is slight; any householder can satisfy himself of this fact by considering the increase in price of articles, like milk and eggs, where the influence of both the tariff and the trusts is negligible. No conditions have been shown which warrant us in believing that the abolition of the protective tariff as a whole would bring any substantial benefit to the consumer, while it would certainly cause unheard of immediate disaster to all wage-workers, all business men, and all farmers, and in all probability would permanently lower the standard of living here. In order to show the utter futility of the belief that the abolition of the tariff and the establishment of free trade would remedy the condition complained of, all that is necessary is to look at the course of industrial events in England and in Germany during the last thirty years, the former under free trade, the latter under a protective system. During these thirty years it is a matter of common knowledge that Germany has forged ahead relatively to England, and this not only as regards the employers, but as regards the wage-earners--in short, as regards all members of the industrial classes. Doubtless, many causes have combined to produce this result; it is not to be ascribed to the tariff alone, but, on the other hand it is evident that it could not have come about if a protective tariff were even a chief cause among many other causes of the high cost of living.
It is also asserted that the trusts are responsible for the high cost of living. I have no question that, as regards certain trusts, this is true. I also have no question that it will continue to be true just as long as the country confines itself to acting as the Baltimore platform demands that we act. This demand is, in effect, for the States and National Government to make the futile attempt to exercise forty-nine sovereign and conflicting authorities in the effort jointly to suppress the trusts, while at the same time the National Government refuses to exercise proper control over them. There will be no diminution in the cost of trust-made articles so long as our Government attempts the impossible task of restoring the flint-lock conditions of business sixty years ago by trusting only to a succession of lawsuits under the Anti-Trust Law--a method which it has been definitely shown usually results to the benefit of any big business concern which really ought to be dissolved, but which cause disturbance and distress to multitudes of smaller concerns. Trusts which increase production--unless they do it wastefully, as in certain forms of mining and lumbering--cannot permanently increase the cost of living; it is the trusts which limit production, or which without limiting production, take advantage of the lack of governmental control, and eliminate competition by combining to control the market, that cause all increase in the cost of living. There should be established at once, as I have elsewhere said, under the National Government an inter-State industrial commission, which should exercise full supervision over the big industrial concerns doing an inter-State business into which an element of monopoly enters. Where these concerns deal with the necessaries of life the commission should not shrink, if the necessity is proved, of going to the extent of exercising regulatory control over the conditions that create or determine monopoly prices.
By such action we shall certainly be able to remove the element of contributory causation on the part of the trusts and the tariff towards the high cost of living. There will remain many other elements. Wrong taxation, including failure to tax swollen inheritances and unused land and other natural resources held for speculative purposes, is one of these elements. The modern tendency to leave the country for the town is another element; and exhaustion of the soil and poor methods of raising and marketing the products of the soil make up another element, as I have already shown. Another element is that of waste and extravagance, individual and National. No laws which the wit of man call devise will avail to make the community prosperous if the average individual lives in such fashion that his expenditure always exceeds his income.
National extravagance--that is, the expenditure of money which is not warranted--we can ourselves control, and to some degree we can help in doing away with the extravagance caused by international rivalries.
These are all definite methods by which something can be accomplished in the direction of decreasing the cost of living. All taken together will not fully meet the situation. There are in it elements which as yet we do not understand. We can be certain that the remedy proposed by the Democratic party is a quack remedy. It is just as emphatically a quack remedy as was the quack remedy, the panacea, the universal cure-all which they proposed sixteen years ago. It is instructive to compare what they now say with what they said in 1896. Only sixteen years ago they were telling us that the decrease in prices was fatal to our people, that the fall in the production of gold, and, as a consequence, the fall in the prices of commodities, was responsible for our ills. Now they ascribe these ills to diametrically opposite causes, such as the rise in the price of commodities. It may well be that the immense output of gold during the last few years is partly responsible for certain phases of the present trouble--which is an instructive commentary on the wisdom of those men who sixteen years ago insisted that the remedy for everything was to be found in the mere additional output of coin, silver and gold alike. There is no more curious delusion than that the Democratic platform is a Progressive platform. The Democratic platform, representing the best thought of the acknowledged Democratic leaders at Baltimore, is purely retrogressive and reactionary. There is no progress in it. It represents an effort to go back; to put this Nation of a hundred millions, existing under modern conditions, back to where it was as a Nation of twenty-five millions in the days of the stage-coach and canal boat. Such an attitude is toryism, not Progressivism.
In addition, then, to the remedies that we can begin forthwith, there should be a fearless, intelligent, and searching inquiry into the whole subject made by an absolutely non-partisan body of experts, with no prejudices to warp their minds, no object to serve, who shall recommend any necessary remedy, heedless of what interest may be helped or hurt thereby, and caring only for the interests of the people as a whole.
We believe that there exists an imperative need for prompt legislation for the improvement of our National currency system. The experience of repeated financial crises in the last forty years has proved that the present method of issuing, through private agencies, notes secured by Government bonds is both harmful and unscientific. This method was adopted as a means of financing the Government during the Civil War through furnishing a domestic market for Government bonds. It was largely successful in fulfilling that purpose; but that need is long past, and the system has outlived this feature of its usefulness. The issue of currency is fundamentally a governmental function. The system to be adopted should have as its basic principles soundness and elasticity. The currency should flow forth readily at the demand of commercial activity, and retire as promptly when the demand diminishes. It should be automatically sufficient for all of the legitimate needs of business in any section of the country. Only by such means can the country be freed from the danger of recurring panics. The control should be lodged with the Government, and should be safeguarded against manipulation by Wall Street or the large interests. It should be made impossible to use the machinery or perquisites of the currency system for any speculative purposes. The country must be safeguarded against the overexpansion or unjust contraction of either credit or circulating medium.
There can be no greater issue than that of Conservation in this country. Just as we must conserve our men, women, and children, so we must conserve the resources of the land on which they live. We must conserve the soil so that our children shall have a land that is more and not less fertile than that our fathers dwelt in. We must conserve the forests, not by disuse but by use, making them more valuable at the same time that we use them. We must conserve the mines. Moreover, we must insure so far as possible the use of certain types of great natural resources for the benefit of the people as a whole. The public should not alienate its fee in the water power which will be of incalculable consequence as a source of power in the immediate future. The Nation and the States within their several spheres should by immediate legislation keep the fee of the water power, leasing its use only for a reasonable length of time on terms that will secure the interests of the public. Just as the Nation has gone into the work of irrigation in the West, so it should go into the work of helping reclaim the swamp lands of the South. We should undertake the complete development and control of the Mississippi as a National work, just as we have undertaken the work of building the Panama Canal. We can use the plant, and we call use the human experience, left free by the completion of the Panama Canal in so developing the Mississippi as to make it a mighty highroad of commerce, and a source of fructification and not of death to the rich and fertile lands lying along its lower length.
In the West, the forests, the grazing lands, the reserves of every kind, should be so handled as to be in the interests of the actual settler, the actual home-maker. He should be encouraged to use them at once, but in such a way as to preserve and not exhaust them. We do not intend that our natural resources shall be exploited by the few against the interests of the many, nor do we intend to turn them over to any man who will wastefully use them by destruction, and leave to those who come after us a heritage damaged by just so much. The man in whose interests we are working is the small farmer and settler, the man who works with his own hands, who is working not only for himself but for his children, and who wishes to leave to them the fruits of his labor. His permanent welfare is the prime factor for consideration in developing the policy of Conservation; for our aim is to preserve our natural resources for the public as a whole, for the average man and the average woman who make up the body of the American people.
Alaska should be developed at once, but in the interest of the actual settler. In Alaska the Government has an opportunity of starting in what is almost a fresh field to work out various problems by actual experiment. The Government should at once construct, own, and operate the railways in Alaska. The Government should keep the fee of all the coal-fields and allow them to be operated by lessees with the condition in the lease that non-use shall operate as a forfeit. Telegraph lines should be operated as the railways are. Moreover, it would be well in Alaska to try a system of land taxation which will, so far as possible, remove all the burdens from those who actually use the land, whether for building or for agricultural purposes, and will operate against any man who holds the land for speculation, or derives an income from it based, not on his own exertions, but on the increase in value due to activities not his own. There is very real need that this Nation shall seriously prepare itself for the task of remedying social injustice and meeting social problems by well-considered governmental effort; and the best preparation for such wise action is to test by actual experiment under favorable conditions the device which we have reason to believe will work well, but which it is difficult to apply in old settled communities without preliminary experiment.
In international affairs this country should behave toward other nations exactly as an honorable private citizen behaves toward other private citizens. We should do no wrong to any nation, weak or strong, and we should submit to no wrong. Above all, we should never in any treaty make any promise which we do not intend in good faith to fulfill. I believe it essential that our small army should be kept at a high pitch of perfection, and in no way can it be so damaged as by permitting it to become the plaything of men in Congress who wish to gratify either spite or favoritism, or to secure to localities advantages to which those localities are not entitled. The navy should be steadily built up; and the process of up-building must not be stopped until--and not before--it proves possible to secure by international agreement a general reduction of armaments. The Panama Canal must be fortified. It would have been criminal to build it if we were not prepared to fortify it and to keep our navy at such a pitch of strength as to render it unsafe for any foreign power to attack us and get control of it. We have a perfect right to permit our coastwise traffic (with which there can be no competition by the merchant marine of any foreign nation--so that there is no discrimination against any foreign marine) to pass through that Canal on any terms we choose, and I personally think that no toll should be charged on such traffic. Moreover, in time of war, where all treaties between warring nations, save those connected with the management of the war, at once lapse, the Canal would of course be open to the use of our warships and closed to warships of the nation with which we were engaged in hostilities. But at all times the Canal should be opened on equal terms to the ships of all nations, including our own engaged in international commerce. That was the understanding of the treaty when it was adopted, and the United States must always, as a matter of honorable obligation and with scrupulous nicety, live up to every understanding which she has entered into with any foreign Power.
The question that has arisen over the right of this Nation to charge tolls on the Canal vividly illustrates the folly and iniquity of making treaties which cannot and ought not to be kept. As a people there is no lesson we more need to learn than the lesson not in an outburst of emotionalism to make a treaty that ought not to be, and could not be, kept; and the further lesson that, when we do make a treaty, we must soberly live up to it as long as changed conditions do not warrant the serious step of denouncing it. If we had been so unwise as to adopt the general arbitration treaties a few months ago, we would now be bound to arbitrate the question of our right to free our own coastwise traffic from Canal tolls; and at any future time we might have found ourselves obliged to arbitrate the question whether, in the event of war, we could keep the Canal open to our own war vessels and closed to those of our foes. There could be no better illustration of the extreme unwisdom of entering into international agreements without paying heed to the question of keeping them. On the other hand, we deliberately, and with our eyes open, and after ample consideration and discussion, agreed to treat all merchant ships on the same basis; it was partly because of this agreement that there was no question raised by foreign nations' as to our digging and fortifying the Canal; and, having given our word, we must keep it. When the American people make a promise, that promise must and will be kept.
Now, friends, this is my confession of faith. I have made it rather long because I wish you to know just what my deepest convictions are on the great questions of today, so that if you choose to make me your standard-bearer in the fight you shall make your choice understanding exactly how I feel--and if, after hearing me, you think you ought to choose some one else, I shall loyally abide by your choice. The convictions to which I have come have not been arrived at as the result of study in the closet or the library. but from the knowledge I have gained through hard experience during the many years in which, under many and varied conditions, I have striven and toiled with men. I believe in a larger use of the governmental power to help remedy industrial wrongs, because it has been borne in on me by actual experience that without the exercise of such power many of the wrongs will go unremedied. I believe in a larger opportunity for the people themselves directly to participate in government and to control their governmental agents, because long experience has taught me that without such control many of their agents will represent them badly. By actual experience in office I have found that, as a rule, I could secure the triumph of the causes in which I most believed, not from the politicians and the men who claim an exceptional right to speak in business and government, but by going over their heads and appealing directly to the people themselves. I am not under the slightest delusion as to any power that during my political career I have at any time possessed. Whatever of power I at any time had, I obtained from the people. I could exercise it only so long as, and to the extent that, the people not merely believed in me, but heartily backed me up. Whatever I did as President I was able to do only because I had the backing of the people. When on any point I did not have that backing, when on any point I differed from the people, it mattered not whether I was right or whether I was wrong, my power vanished. I tried my best to lead the people, to advise them, to tell them what I thought was right; if necessary, I never hesitated to tell them what I thought they ought to hear, even though I thought it would be unpleasant for them to hear it; but I recognized that my task was to try to lead them and not to drive them, to take them into my confidence, to try to show them that I was right, and then loyally and in good faith to accept their decision. I will do anything for the people except what my conscience tells me is wrong, and that I can do for no man and no set of men; I hold that a man cannot serve the people well unless he serves his conscience; but I hold also that where his conscience bids him refuse to do what the people desire, he should not try to continue in office against their will. Our Government system should be so shaped that the public servant, when he cannot conscientiously carry out the wishes of the people, shall at their desire leave his office and not misrepresent them in office; and I hold that the public servant can by so doing, better than in any other way, serve both them and his conscience.
Surely there never was a fight better worth making than the one in which we are engaged. It little matters what befalls any one of us who for the time being stand in the forefront of the battle. I hope we shall win, and I believe that if we can wake the people to what the fight really means we shall win. But, win or lose, we shall not falter. Whatever fate may at the moment overtake any of us, the movement itself will not stop. Our cause is based on the eternal principles of righteousness; and even though we who now lead may for the time fail, in the end the cause itself shall triumph. Six weeks ago, here in Chicago, I spoke to the honest representatives of a Convention which was not dominated by honest men; a Convention wherein sat, alas! a majority of men who, with sneering indifference to every principle of right, so acted as to bring to a shameful end a party which had been founded over half a century ago by men in whose souls burned the fire of lofty endeavor. Now to you men, who, in your turn, have corne together to spend and be spent in the endless crusade against wrong, to you who face the future resolute and confident, to you who strive in a spirit of brotherhood for the betterment of our Nation, to you who gird yourselves for this great new fight in the never-ending warfare for the good of humankind, I say in closing what in that speech I said in closing: We stand at Arrnageddon, and we battle for the Lord.