My fellow countrymen of the American Legion:
It is a pleasure to accept the invitation of your commander to attend your convention. I am led to do so at a time of most pressing public duties, because I wish to lay frankly before you important facts which I am sure you will wish to have and I wish to point to an opportunity of service which you can give not alone to your members but to the country at large.
I need not recount that the world is passing through a great depression fraught with gruelling daily emergencies alike to men and to governments. This depression today flows largely from political forces caused by the great war in which your service brought bloodshed to an end and gave hope of reconstruction to the world. Our economic strength is such that we would have recovered long since but for these forces from abroad. Recovery of the world now rests and awaits in no small degree upon our country, the United States of America. Some individuals may have lost their nerve and faith but the real American people are digging themselves out with industry and courage. We have the self-containment, the resources, the manhood, the intelligence and by united action we will lead the world in recovery.
The American Legion, born of world emergency, wields a great influence throughout our country because it speaks for a generation which has proven its citizenship by offering its all to its country. You of the Legion have a peculiarly sacred stake in the future of the country which you fought to preserve. You have proven your devotion in camp and battle. You have built up your organization to serve in peace as well as in war.
You are aware that during the past year our national expenditures have exceeded our income. Today the National Government is faced with another large deficit in its budget. There is a decrease in the annual yield of income taxes alone from $2,400,000,000 in the years of prosperity to only $1,200,000,000 today. Simultaneously we are carrying a high and necessary extra burden of public works in aid to the unemployed, of aids to agriculture and of increased benefits and services to veterans. In these circumstances I am directing the most drastic economy in every non-vital branch of government, yet the essential services must be maintained. These obviously include continued provision for our disabled veterans and the continuation of our present programs of work for the unemployed and aids to agriculture. Whatever the arguments made, do not be misled by those who say that we need only to tax the rich to secure the funds we need. We must face the absolute fact that the rich can be taxed to the point of diminishing returns, and still the deficit in our ordinary and necessary expenditures would not be covered even upon a basis of the utmost economy. Make no mistake. In these circumstances it is those who work in the fields, at the bench and desk who would be forced to carry an added burden for every added cent to our expenditures.
Whatever the deficit may be and in whatever manner it may ultimately be met, every additional expenditure placed upon our government in this emergency magnifies itself out of all proportion into intolerable pressures, whether it is by taxation or by loans. Either loans or taxes beyond the very minimum necessities will drain the resources of industry and commerce and in turn will increase unemployment. Such action can easily defeat our hopes, our plans and our best efforts for the recovery of our country and so indefinitely delay the return of prosperity and employment. We can carry our present expenditures without jeopardy to national stability. We can carry no more without grave risks.
The imperative moment has come when increase in governmental expenditures must be avoided, whether it be ill-considered, hasty, or uninformed legislation of any kind, or whether it be for new services meritorious in themselves. Any alternative will strike down the earnest efforts of the citizenry of our nation to start us back upon the economic paths to which we must return if we and our children are to have the destiny which everyone has the right to hope and the heart to give to them.
During the past week your national commander and the members of the Legion's employment committee came to me and offered to the nation the combined strenth of your million men and your ten thousand posts to help in relief over the winter. I hereby accept that offer with the thanks of the Nation in the fine spirit in which it was submitted. But there is today an even greater service to our country. That is the determined opposition by you to additional demands upon the Nation until we have won this war against world depression. I am not speaking alone of veterans' legislation which has been urged for action at this convention, but I am speaking equally of demands for every other project proposed in the country which would require increased Federal expenditure. It is an attitude and an action toward the whole field of Government expenditures that is before us. The first stone in the foundation of stability and recovery, both at home and in the world, is the stability of the Government of the United States. It is my purpose to maintain that stability and I invite you to enlist in that fight. The country's need of this service is second only to war. I invite you to study the relation of our governmental finance to the daily welfare and security of every man, woman and child in the history of Europe during the past six months alone. It is for us to observe these lessons and to be helpful but our first duty is to the people of the United States. Nothing would give a greater glow of confidence to our country today than your enlistment and the vigorous support you can bring to this effort to prevent additional burden on the Government from any quarter whatsoever.
You would not have the President of the United States plead with any citizen or group of citizens for any course of action. I make no plea to you. But you would have your President point out the path of service in this nation. That I am doing now. My mind goes back to the days of the war where you and I served in our appointed tasks. At the end of those years of heart sickness over the misery of it all, when the peace came, you and I knew that the wounds of the world were unhealed and that there would be further emergencies still before our country and the world when self-denial and courageous service must be given. Your organization was born at that time and dedicated to that service by the very preamble of its constitution. No man can doubt the character and idealism of men who have gone into the trenches in defense of their country. I have that faith. This is an emergency and these are the times for service to which we must put full heart and purpose to help and not retard the return of happy days we know are ahead of your country and mine.
With the guidance of Almighty God, with the same faith, courage and self sacrifice with which you, backed by the Nation, won victory fourteen years ago, so shall we win victory today.