During the past 12 months we have suffered with other Nations from economic depression.

The origins of this depression lie to some extent within our own borders through a speculative period which diverted capital and energy into speculation rather than constructive enterprise. Had overspeculation in securities been the only force operating, we should have seen recovery many months ago, as these particular dislocations have generally readjusted themselves. Continue reading →

My dear Mr. Postmaster General:

There seems to be a general acceptance throughout the country that the Postoffice has been reducing its force in these times of difficulty when we are urging manufacturers to stagger their work in such fashion as to use all of their employees. I know this is not true and that you are endeavoring to hold on to regular employees by at least giving them part-time work. I think, however, that it might be desirable to make some explanation on the subject. Continue reading →

Gentlemen of the United States Chamber of Commerce:

We have been passing through one of those great economic storms which periodically bring hardship and suffering upon our people. While the crash only took place six months ago, I am convinced that we have now passed the worst and with continuity of effort we shall rapidly recover. There is one certainty in the future of a people of the resources, intelligence, and character of the people of the United States—that is, prosperity. Continue reading →

Years ago the railways were so tainted with sin that they became national campaign cries throughout the land. To be against the railways was the final test of morals in political life. The scientist, however, brought onto our highways the gas engine, the automobile, the truck, and onto our waterways the Diesel tug, and as a result the Government regulation of the railways as a means for holding down rates has been turned into a device for holding them up so the railways can live. They have become tainted with poverty and therefore with respectability. Continue reading →

This body represents the industries of the United States. You have been invited to create a temporary organization for the purpose of systematically spreading into industry as a whole the measures which have been taken by some of our leading industries to counteract the effect of the recent panic in the stock market. There has necessarily been some unemployment, starting with diversions of capital from the channels of business into the speculation, and after the break by some reduction in the demand for luxuries and semi-necessities from those who met with losses. But the large effect was to create undue pessimism, fear, uncertainty, and hesitation in business. These emotions, being emotions, if they had been allowed to run their course would, by feeding on themselves, create difficulties. The American mind is prone to revert to previous occasions when we were much less able to organize to meet such situations. Continue reading →

The country has enjoyed a large degree of prosperity and sound progress during the past year with steady improvement of production and distribution and consequent advancement in standards of living. Progress has, of course, been unequal among industries, and some, such as coal, lumber, leather, and textiles, still lag behind. The long upward trend of fundamental progress, however, gave rise to over-optimism as to profits, which translated itself into a wave of uncontrolled speculation in securities, resulting in the diversion of capital from business to the stock market and the inevitable crash. The natural consequences have been a reduction in the consumption of luxuries and semi-necessities by those who have met with losses, and a number of persons thrown temporarily out of employment. Prices of agricultural products dealt in upon the great markets have been affected in sympathy with the stock crash. Continue reading →

A preliminary conference was held at the White House today with the railway presidents, mostly of the eastern territory, at which were present:

• The President,
• The Secretary of the Treasury, and
• The Secretary of Commerce.

The railway presidents were unanimous in their determination to cooperate in the maintenance of employment and business progress. It was stated that the railways which they represented would proceed with full programs of construction and betterments without any reference to recent stock exchange fluctuations; that they would canvass the situation as to further possibilities of expansion, and that amongst these particular railways it appeared that the total volume of such construction work already indicated an increase during the next six months over the similar period of last year. Continue reading →

The President said:

I have during the past week engaged in numerous conferences with important business leaders and public officials with a view to the coordination of business and governmental agencies in concerted action for continued business progress.

I am calling for the middle of next week a small preliminary conference of representatives of industry, agriculture and labor to meet with the Secretaries of the Treasury, Agriculture, Commerce, and Labor, together with the Chairman of the Federal Farm Board to develop certain definite steps. Continue reading →