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National Convention, Open Hearth and Basic Oxygen Steel Committee, Detroit, MI, April 6, 1970
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National Convention, Open Hearth and Basic Oxygen Steel Committee, Detroit, MI, April 6, 1970
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The original documents are located in Box D28, folder "National Convention, Open Hearth
and Basic Oxygen Steel Committee, Detroit, MI, April 6, 1970" of the Ford Congressional
Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box D28 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
NATIONAL CONVENTION OF THE OPEN HEARTH AND
BASIC OXYGEN STEEL COMMITTEE AT
DETROIT, MICHIGAN, 6:30 P.M., MONDAY,
APRIL 6, 1970.
IN 1778, A FRENCH NOBLEMAN SAID
OF AMERICANS, "THEY ARE THE HOPE OF THE
WORLD. THEY MAY BECOME ITS MODEL."
FROM THAT TIME FORTH, AMERICANS
HAVE BEEN ENVIED AND FEARED, SELDOM LOVED.
WE HAVE BEEN MUCH ADMIRED, MUCH MALIGNED,
AND MUCH MISUNDERSTOOD. IT MIGHT ALSO BE
SAID WE HAVE DIFFICULTY UNDERSTANDING
OURSELVES.
IT WAS ANOTHER FRENCHMAN,
De TOQUEVILLE, WHO SAW AMERICANS CLEARLY.
IN HIS FAMOUS BOOK, "DEMOCRACY IN AMERICA,"
De TOQUEVILLE TALKED OF THE PERPETUAL
DISSATISFACTION OF AMERICANS WITH THEIR
SITUATION IN LIFE, THEIR CONSTANT STRIVING
FOR SOMETHING BETTER.
-2-
SAID De TOQUEVILLE OF AMERICANS:
"THEY HAVE ALL A LIVELY FAITH IN
THE PERFECTIBILITY OF MAN; THEY JUDGE THAT
THE DIFFUSION OF KNOWLEDGE MUST NECESSARILY
BE ADVANTAGEOUS, AND THE CONSEQUENCES OF
IGNORANCE FATAL; THEY ALL CONSIDER SOCIETY
AS A BODY IN A STATE OF IMPROVEMENT,
HUMANITY AS A CHANGING SCENE, IN WHICH
NOTHING IS OR OUGHT TO BE, PERMANENT; AND
THEY ADMIT THAT WHAT APPEARS TO THEM TODAY
TO BE GOOD MAY BE SUPERSEDED BY SOMETHING
BETTER TOMORROW."
De TOQUEVILLE PUT HIS FINGER
ON THE KEY CHARACTER TRAIT OF AMERICANS --
THEIR RESTLESSNESS, THEIR THIRST FOR
SOMETHING BETTER, THEIR DRIVE TOWARD CHANGE
THE RIVETING OF THEIR EYES ON TOMORROW.
SO IT HAS ALWAYS BEEN IN THIS
GREAT AND GLORIOUS LAND WE CALL AMERICA,
AND SO IT IS TODAY.
-3-
WE STAND TODAY ON THE THRESHOLD
OF GREAT CHANGE. I AM SURE THIS IS NOT
APPARENT TO SOME, PERHAPS EVEN TO MILLIONS
OF AMERICANS. I AM NOT SPEAKING OF THE
KIND OF CHANGES SOUGHT BY THE VIOLENTLY
REVOLUTIONARY ELEMENTS IN OUR SOCIETY BUT
OF CHANGES THAT ARE BEING WROUGHT WITHIN AND
AT THE INSTIGATION OF WHAT IS CALLED "THE
ESTABLISHMENT."
I AM TALKING ABOUT THE "NEW
ECOLOGY." I AM TALKING ABOUT ELFARE
REFORM. I AM TALKING ABOUT POPULATION
PLANNING AND POPULATION CONTROL. I AM
TALKING ABOUT GIVING CITIES AND STATES A
PERCENTAGE SLICE OF FEDERAL INCOME TAX
REVENUE, AND OF EVERYTHING ELSE THAT COMES
UNDER THE HEADING OF "THE NEW FEDERALISM."
THESE ARE REVOLUTIONARY CHANGES
AND THEY ARE CHANGES WHICH I BELIEVE ARE
NOT ONLY ACQUIESCED IN BUT DEMANDED BY
-4-
WHAT HAS COME TO BE KNOWN AS THE SILENT
MAJORITY.
IN FACT, IF ALL OF THE EXCITING
NEW PROGRAMS NOW BEFORE THE CONGRESS ARE
ENACTED INTO LAW, WE WILL SEE A GREATER
REFORM OF OUR POLITICAL AND SOCIAL SYSTEM
THAN AT ANY TIME SINCE THE FIRST
ADMINISTRATION OF FRANKLIN DELANO ROOSEVELT.
I MIGHT ADD THEY WILL HAVE COME ABOUT
BECAUSE OF A NEW ATMOSPHERE OF REFORM THAT
HARKENS BACK TO ANOTHER SIMILAR ERA -- THE
DAYS OF TEDDY ROOSEVELT.
SOME OF THESE REFORMS STEM FROM
THE FACT THAT WE HAVE WITNESSED THE DEMISE
OF THE NEW DEAL, AS SURELY AS IF A CURTAIN
HAD BEEN DRAWN ACROSS THE SPECTACULAR DRAMA
WHICH BEGAN WITH THE GREAT DEPRESSION
WE HAVE REACHED A POINT WHERE
FEDERAL PROGRAMS HAVE PILED UPON FEDERAL
PROGRAMS IN A MIX THAT CONSTITUTES A MESS,
-5-
DUPLICATION THAT HAS MOUNTED TO CHAOS, A
MYLTIPLICITY OF FEDERAL PROGRAMS THAT HAS
MAYORS AND STATE OFFICIALS GROPING FOR
FEDERAL HELP AS IN A MAZE.
WE ARE NOW STRIVING TO STRAIGHTEN
OUT THAT MESS, BRINGING ORDER OUT OF CHAOS
CUTTING A DIRECT ROUTE THROUGH THE MAZE.
WE ARE REVERSING THE FLOW OF POWER. FAR
TOO MUCH POWER HAS BECOME CONCENTRATED IN
WASHINGTON. WE ARE SEEKING TO TURN SOME
OF THAT POWER BACK TO THE CITIES AND STATES.
THIS IS WHAT WE CALL "THE NEW
FEDERALISM." IT CAN BE FOUND IN THE
ADMINISTRATION*S PROPOSED NEW COMPREHENSIVE
MANPOWER TRAINING ACT, THE PROPOSED FAMILY
ASSISTANCE ACT WHICH WOULD TURN WELFARE INTO
"WORKFARE," CHANGES IN THE UNEMPLOYMENT
INSURANCE SYSTEM, AND A LONG OVERDUE REVENUE
SHARING ACT.
THIS IS A FUNDAMENTAL CHANGE IN
-6-
FEDERAL POLICY -- A NEW APPROACH IN MANPOWER
TRAINING, INCOME MAINTENANCE, AND FEDERAL
AID TO CITIES AND STATES, WITH TOP PRIORITY
TO LOCAL PRIORITIES.
WE WANT TO RETURN MORE
RESPONSIBILITIES TO THE STATES AND LOCAL
COMMUNITIES AND TO HELP THEM WITH THE
FISCAL BURDEN OF SHOULDERING THOSE
RESPONSIBILITIES. THIS IS A SHARP
DEPARTURE FROM THE NEW DEAL PATTERN OF
"THE FEDERAL BUREAUCRAT KNOWS BEST AND
YOU'LL DO IT OUR WAY OR ELSE."
AS THE PRESIDENT HAS STATED, WE
WANT TO DO THIS "NOT AS A WAY OF AVOIDING
PROBLEMS BUT AS A BETTER WAY OF SOLVING
PROBLEMS."
LAST SEPTEMBER 24 I JOINED WITH
MORE THAN 75 OTHER MEMBERS OF THE U.S. HOUSE
OF REPRESENTATIVES TO INTRODUCE LEGISLATION
THAT WILL MAKE FEDERALLY-COLLECTED REVENUES
-7-
AVAILABLE FOR PERCENTAGE SHARING WITH THE
CITIES AND STATES. THE AIM OF THIS LEGIS-
LATION IS TO CARRY OUT A PROPOSAL MADE BY
PRESIDENT NIXON LAST AUGUST 13.
THE INTRODUCTION OF THIS
REVENUE-SHARING BILL MARKED THE FIRST TIME
IN RECENT HISTORY THAT A CONCERTED EFFORT
HAS BEEN MADE TO GIVE STATES AND LOCAL
GOVERNMENTS FUNDS THAT WILL ALLOW THEM
EFFECTIVELY TO LIVE UP TO THEIR COMMITMENTS
TO THEIR CITIZENS.
NOW, MONEY FLOWING FROM THE
FEDERAL GOVERNMENT TO THE STATES IS BEING
DISPENSED IN THE FORM OF CATEGORICAL
GRANTS, WITH THE FEDERAL GOVERNMENT
DETERMINING HOW AND WHERE THE FUNDS WILL
BE SPENT. THE LEGISLATION WE ARE SEEKING
WOULD PROVIDE ADDITIONAL FUNDS THAT STATES
AND CITIES COULD SPEND AS THEY SEE FIT.
THERE ARE THOSE WHO LACK CONFIDENCE
-8-
IN THE ABILITY OF STATES AND LOCAL
GOVERNMENTS TO SPEND MONEY EFFECTIVELY OR
PROPERLY. BUT WE HAVE NO FARTHER TO LOOK
THAN THE FEDERAL GOVERNMENT TO SEE HOW
GREAT SUMS OF MONEY HAVE BEEN BADLY SPENT
ON POORLY DEVISED PROGRAMS DEVISED FOR
QUESTIONABLE REASONS.
A MAJORITY OF AMERICANS HAVE LOST
FAITH IN HEAVILY CENTRALIZED GOVERNMENT.
AND THE CAUSE FOR THAT IS NOT HARD TO FIND,
FOR IN THE FIVE YEARS PRIOR TO 1969 WE SAW
SCORES OF NEW FEDERAL PROGRAMS ENACTED WITH
TENS OF THOUSANDS OF NEW EMPLOYEES ADDED TO
FEDERAL PAYROLLS AND TENS OF BILLIONS OF
DOLLARS SPENT WITH THE AVOWED AIM OF HEALING
THE NATION'S GRAVE SOCIAL ILLS. YET
DESPITE THIS MASSIVE INFUSION OF
FEDERALLY-DIRECTED PROGRAMS AND DOLLARS,
THE PROBLEMS OF OUR CITIES DEEPENED INTO
FLAMING CRISIS.
-9-
I BELIEVE MORE AND MORE AMERICANS
ARE TURNING AWAY FROM THE CENTRAL GOVERNMENT
TO THEIR LOCAL AND STATE GOVERNMENTS AS THE
BEST WAY TO DEAL WITH LOCAL AND STATE
PROBLEMS. YET THE CONGRESS HAS NOT BEGUN
TO MOVE ON REVENUE-SHARING.
EARLIER I MENTIONED MANPOWER
TRAINING IN CONNECTION WITH THE NEW
FEDERALISM. I DID SO BECAUSE, AT PRESENT,
MAYORS CONTROL NONE OF THE FEDERAL MANPOWER
FUNDS THAT COME INTO THEIR CITIES UNDER THE
MANPOWER DEVELOPMENT AND TRAINING ACT AND
THE ECONOMIC OPPORTUNITY ACT.
IN CONTRAST, IF THE ADMINISTRATION'S
NEW MANPOWER TRAINING ACT WAS FULLY
IMPLEMENTED, THE NATION'S MAYORS WOULD HAVE
ADMINISTRATIVE CONTROL OVER ABOUT
THREE-QUARTERS OF A BILLION DOLLARS IN
FEDERAL FUNDS EACH YEAR.
INSTEAD OF A LARGE NUMBER OF
-10-
UNRELATED PROJECTS IN A CERTAIN METROPOLITAN
AREA, WE WOULD HAVE ONE COHERENT PROGRAM AND
ONE SPONSOR -- AND THE SPONSOR WOULD DESIGN
A MIX OF SERVICES AND PROGRAM COMPONENTS
UNIQUELY SUITED TO THE NEEDS OF THE
COMMUNITY.
I SPOKE AT THE OUTSET ABOUT THE
INSATIABLE DESIRE OF AMERICANS TO BETTER
THEMSELVES, THIS HAS BEEN TRANSLATED
THROUGHOUT AMERICAN HISTORY INTO WHAT I
CALL THE WORK ETHIC -- THE IDEA THAT EVERY
MAN WORTH HIS SALT WORKS FOR A LIVING IF
HE IS ABLE TO DO SO.
ONE OF THE MOST DRAMATIC STORIES
OF AMERICAN HEROISM UNFOLDED DURING THE
GREAT DEPRESSION WHEN MILLIONS OF FAMILIES
THROUGHOUT THE COUNTRY FOUND SOME WAY TO
PIECE TOGETHER A LIVING.
WHILE MOST AMERICANS CLUNG TO THE
WORK ETHIC THROUGHOUT THE DEPRESSION,
-11-
MILLIONS WERE FORCED ONTO THE DOLE. WELFARE
BECAME A WAY OF LIFE FOR THEM AND FOR
THEIR SONS AND DAUGHTERS.
TODAY WE HAVE AN OPPORTUNITY TO
BREAK THE WELFARE CYCLE -- TO MAKE A VIABLE
TRUTH OF THE PRINCIPLE THAT IT PAYS TO
WORK.
I AM SPEAKING OF THE PROPOSAL NOW
BEFORE THE CONGRESS TO WIPE OUT THE
SCANDALOUS WELFARE HANGOVER OF THE
DEPRESSION DAYS -- WIPE IT OUT BY REPLACING
IT WITH THE FAMILY ASSISTANCE PROGRAM, A
NEW PLAN CALLED "WORKFARE." THE NEW PROGRAM
IS CALLED WORKFARE BECAUSE IT ENCOURAGES
PEOPLE TO WORK
UNDER THE PRESENT WELFARE SYSTEM,
A POOR MAN WHO IS WORKING CAN LOOK ACROSS
THE STREET AT A FAMILY ON WELFARE GETTING
MORE FOR NOT WORKING.
WITH WORKFARE, THE "DISINCENTIVE"
-12-
TO WORK IS REMOVED. A POOR FAMILY WITH A
WORKING MEMBER WILL ALWAYS GET MORE THAN
A FAMILY WITHOUT A WORKING MEMBER.
WHAT WE WANT IS TO TAKE PEOPLE
OFF WELFARE ROLLS AND PUT THEM ON PAYROLLS.
WE THINK THESE PEOPLE WOULD RATHER HAVE A
HAND UP THAN A HANDOUT. THEY WILL IF THE
INCENTIVE IS THERE.
THE WORKFARE PROGRAM WILL SHOW
US WHAT THE DIGNITY OF WORK CAN DO FOR A
HUMAN BEING. AND IT WILL HELP TO KEEP
FAMILIES TOGETHER. THAT, ALONE, WILL BE
WORTH THE PRICE WE MUST PAY, FOR THE FAMILY
IS THE FOUNDATION ON WHICH OUR REPUBLIC IS
BUILT. IF THE FAMILY IS STRONG, THE NATION
WILL BE STRONG.
AND AS WE INVEST IN HUMAN
RESOURCES THROUGH THE WORKFARE PROGRAM WE
MUST ALSO ACCEPT THE EXPENSIVE CHALLENGE
OF RESTORING THE AMERICAN ENVIRONMENT --
-13-
CLEANING UP OUR AIR AND WATER AND DEALING
WITH THE SOLID WASTES THAT CLUTTER UP OUR
LAND.
THE CHALLENGE OF THE "NEW ECOLOGY, "
AS IT IS CALLED, IS BEING TAKEN UP BY
GOVERNMENT AT ALL LEVELS, THE STUDENTS IN
OUR COLLEGES, AND OUR FORWARD-LOOKING
INDUSTRIES.
IT IS A CHALLENGE THAT DEMANDS
FAR MORE OF US THAN PUTTING A MAN ON THE
MOON, MAGNIFICENT AS THAT MISSION WAS.
IT IS FAR MORE DIFFICULT BECAUSE
IT INVOLVES FAR MORE THAN THE ASSEMBLING
OF GREAT BRAINS AND TECHNOLOGY IN PURSUIT
OF A CLEAR-CUT NATIONAL GOAL. IT DOES
INVOLVE THE ASSEMBLING OF A COMPLEX
TECHNOLOGY BUT IT ALSO REQUIRES COORDINATION
OF EFFORT ON THE PART OF THE FEDERAL, STATE
AND LOCAL GOVERNMENTS.
I BELIEVE WE CAN WIN THE FIGHT TO
-14-
SAVE OUR ENVIRONMENT. AND THE REASON I
BELIEVE IT, IS THAT WE NOW HAVE PRESIDENTIAL
LEADERSHIP IN THE EFFORT. THAT MAKES ALL
THE DIFFERENCE BETWEEN EMPTY RHETORIC AND A
PROGRAM THAT CAN MOVE.
THIS IS NOT A VICTORY THAT CAN BE
WON OVERNIGHT. BUT I BELIEVE WE CAN
ESTABLISH A BRIDGEHEAD THIS YEAR AND
ACHIEVE VICTORY WITHIN THIS DECADE. LET ME
REMIND YOU THAT WE DO HAVE A BLUEPRINT FOR
VICTORY IN THE FIGHT TO RESTORE OUR
ENVIRONMENT -- A 37-POINT BATTLE PLAN WHICH
HAS BEEN LAID BEFORE THE CONGRESS BY THE
PRESIDENT OF THE UNITED STATES.
THIS IS JUST ONE BIT OF EVIDENCE
THAT WE ARE RE-ORDERING OUR PRIORITIES AT
THE FEDERAL LEVEL. WE ARE WINDING DOWN THE
VIETNAM WAR -- EXTRICATING OURSELVES FROM
THAT TRAGIC CONFLICT HALFWAY AROUND THE
WORLD -- AND TURNING OUR PRIORITIES AROUND.
-15-
LET ME GIVE YOU DOLLARS-AND-CENTS
PROOF OF THE SHIFT IN OUR PRIORITIES. LET
ME POINT OUT TO YOU THAT LAST YEAR AS IN
EVERY YEAR SINCE THE KOREAN WAR, NATIONAL
DEFENSE ATE UP THE BIGGEST PART OF THE
FEDERAL DOLLAR. IN THE FISCAL 1971 BUDGET,
BY CONTRAST, THE LARGEST SHARE OF THE FEDERAL
BUDGET GOES TO THE CIVILIAN SECTOR AND
SPECIFICALLY TO HUMAN RESOURCES PROGRAMS --
EDUCATION, HEALTH, WELFARE, VETERANS NEEDS
AND MANPOWER PROJECTS.
THE SHIFT IS QUITE DRAMATIC. IN
FISCAL 1969, 44 PER CENT OF THE FEDERAL
BUDGET WENT TO DEFENSE AND 34 PER CENT TO
HUMAN RESOURCES. IN FISCAL 1971, NEARLY
THE REVERSE IS TRUE, WITH 41 PER CENT GOING
TO HUMAN RESOURCES AND 37 PER CENT TO
DEFENSE
I HAVE TALKED TONIGHT ABOUT POLICY
CHANGES MADE OR SOUGHT BY THE NIXON
-16-
ADMINISTRATION, ABOUT THE NEW DIRECTIONS
IN WHICH THIS COUNTRY IS MOVING.
I WOULD BE REMISS IF IN ADDRESSING
THIS AUDIENCE I DID NOT COMMENT ON THE
POLICIES THIS ADMINISTRATION HAS EMPLOYED
TO MOVE TOWARD RELATIVE STABILITY IN THE
ECONOMY AND A NEW ERA OF SOUND ECONOMIC
GROWTH
WE HAVE EMPLOYED THE TECHNIQUES
OF RESTRAINT WITHOUT COERCION -- A HOLDDOWN
IN FEDERAL SPENDING AND A TIGHT REIN ON THE
MONEY SUPPLY. WE HAVE REFUSED TO EMPLOY
WHAT I CALL ECONOMIC BLACKMAIL.
YOU HAVE HEARO MUCH CRITICISM
OF THE ADMINISTRATION FOR NOT REIMPOSING
PRICE AND WAGE GUIDELINES, PUTTING INDUSTRY
AND LABOR INTO A PUBLIC FISHBOWL AND
WHIPPING THE FISHBOWL INTO A FROTH IF THEY
ENGAGED IN WAGE AND PRICE ACTIONS DEEMED
INFLATIONARY BY THE WHITE HOUSE.
-17-
WE KNOW HOW THE GUIDELINES
WORKED IN PRACTICE. WHILE LABOR IGNORED
THE WAGE GUIDELINE, MAJOR INDUSTRY WAS
PUBLICLY CASTIGATED FOR PRICE INCREASE
ANNOUNCEMENTS AND GOVERNMENT BUSINESS WAS
WITHHELD TO WHIP COMPANIES INTO LINE. THAT,
I REPEAT, IS ECONOMIC BLACKMAIL AND I AM
PLEASED THAT THE NIXON ADMINISTRATION IS
HAVING NO PART OF IT. 1, FOR ONE, DO NOT
THINK IT NAIVE TO BELIEVE THAT WHEN LARGE
INDUSTRIAL CONCERNS RAISE PRICES IN A
COMPETITIVE FIELD THOSE PRICE INCREASES
ARE CAUSED BY RISING COSTS AND SHRINKING
PROFIT MARGINS. SO I MAKE NO APOLOGIES
FOR THE NIXON ADMINISTRATION'S REFUSAL TO
GO BACK TO WAGE AND PRICE GUIDELINES AND TO
JAWBONING.
I SUBMIT THAT THE NIXON
ADMINISTRATION's FISCAL AND MONETARY POLICIES
ARE WORKING IN THE FIGHT AGAINST INFLATION.
-18-
WHOLESALE PRICES HAVE LARGELY LEVELLED OFF
WE HAVE REACHED MADE THE A
SHIFT IN
POLICY
-- A SHIFT TO LESS
MONETARY RESTRAINT AND SOME FISCAL STIMULUS.
IT MAY APPEAR TO SOME THAT THE
EASING OF MONETARY RESTRAINT IS PREMATURE,
BUT IN ACTUALITY IT IS WELL TIMED. WE MUST
REMEMBER THAT THERE IS ALWAYS A LAG BEFORE
THE IMPACT OF SUCH ACTIONS IS FELT IN THE
ECONOMY
BESIDES SLIGHTLY LOOSENING THE
CURBS ON THE ECONOMY, WE MUST ALSO FOCUS
ON THE NEED TO AVOID THE ECONOMIC
DISLOCATION WHICH WOULD COME FROM A
NATIONWIDE STRIKE IN TRANSPORTATION. THERE
IS A PRESSING NEED FOR QUICK CONGRESSIONAL
ACTION TO IMPROVE OUR HANDLING OF NATIONAL
EMERGENCY LABOR DISPUTES IN THE TRANSPORT
FIELD.
THE PRESIDENT HAS LAID PROPOSALS
-19-
INVOLVING THREE CAREFULLY THOUGHT-OUT
OPTIONS BEFORE THE CONGRESS -- OPTIONS
INTENDED TO BRING ABOUT SOLUTIONS IN
TRANSPORTATION LABOR DISPUTES THROUGH
COLLECTIVE BARGAINING BUT ALSO DESIGNED TO
PROVIDE A SOLUTION OF LAST RESORT IF NEED
BE.
CONGRESS CANNOT AFFORD TO DELAY
ACTION ON THIS MOST PRESSING PROBLEM. WE
MUST EMULATE THE COURAGE DEMONSTRATED BY
THE PRESIDENT IN FORMULATING THIS MAJOR
LABOR LEGISLATION AND PROCEED TO IMPLEMENT
IT. I BELIEVE THE ENTIRE NATION WILL
BENEFIT. THIS IS LEGISLATION NOT ONLY IN
THE PUBLIC INTEREST BUT IN THE INTEREST OF
THE PRINCIPALS INVOLVED.
I WOULD ADD A FOOTNOTE. IF THE
RAILROAD LABOR DISPUTE IS NOT SETTLED BY
DEADLINE TIME APRIL 11, THE CONGRESS SHOULD
IMPOSE THE SETTLEMENT PROPOSED BY THE
-20-
PRESIDENT RATHER THAN SIMPLY TO EXTEND THE
DEADLINE. IT IS TIME WE SHOWED A LITTLE
GUTS. IF WE DON'T, THE PROBLEM WILL BE
BACK ON CONGRESS'S DOORSTEP IN THE NEAR
FUTURE.
I HAVE TALKED OF PROBLEMS HERE
TONIGHT, AND I HAVE TALKED OF NEW DIRECTIONS
IN WASHINGTON AND THE NATION. LET ME TELL
YOU
If
I HAVE THE GREATEST CONFIDENCE
THAT WE WILL SURMOUNT OUR DIFFICULTIES OF
THE MOMENT AND MOVE THIS NATION TO NEW
HIGHS OF GROWTH AND PROSPERITY.
THIS WILL BE A GOOD YEAR. PROFITS
WILL IMPROVE ON THE WHOLE. THERE WILL BE
A PICKUP IN SALES. BIG INCREASES ARE
PLANNED IN BUSINESS INVESTMENT FOR 1970,
PARTICULARLY IN THE SECOND HALF OF THE YEAR.
AUTO SALES ARE IMPROVING. THE DECLINE IN
FORD
HOME BUILDING HAS LEVELED OFF, AND THE
ADMINISTRATION IS PROVIDING THAT INDUSTRY
-21-
WITH STIMULUS.
THERE IS MUCH FOR GOVERNMENT
TO DO -- AND GOVERNMENT HAS DONE MUCH.
I
THINK WE CURRENTLY ARE CORRECTING MANY OF
THE MISTAKES OF THE RECENT PAST -- MISTAKES
THAT HAVE BROUGHT US A TRAGIC WAR, INFLATION,
AN UNSTABLE ECONOMY.
BUT WE ARE REMEDYING THOSE ERRORS.
AND TO CONTINUE IN THAT GREAT WORK WE NEED
MORE THAN JUST THE ACTIONS OF GOVERNMENT.
THERE IS NO SUBSTITUTE FOR THE HUMAN SPIRIT,
THE INDIVIDUAL INITIATIVE THAT BUILT
AMERICA.
WE NEED THE WILL AND THE WISDOM
OF THE AMERICAN PEOPLE IF WE ARE TO DO ALL
THAT MUST BE DONE TO WIN THE VICTORY AGAINST
THE FORCES OF DEFEATISM AT HOME AND ARMED
AGGRESSION ABROAD.
BUILDING ON THE PAST AND LEARNING
FROM OUR ERRORS, WE CAN MAKE AMERICA MORE
-22-
DESERVING THAN EVER OF THE GREAT PRIDE WE
FEEL IN HER -- MORE WORTHY THAN EVER TO SERVE
AS A MODEL FOR OTHER LANDS.
-- END --
TEXT
DETROIT, MICH.
APR. 6, 1970
HOUSE OF REPRESENTATIVES, U.S.
OFFICE OF THE MINORITY LEADER
because
Herald R. 3rd
PUBLIC DOCUMENT
M.C.
OFFICIAL BUSINESS
delayed were no deperture meeting one late from / of and Pitrit One not Truchol in press was it interisted MONDAY 6:30 P.M.
NATIONAL CONVENTION OF
OXYGEN
OPEN HEARTH AND BASIC, STEEL COMMITTEE
GERALD FORD LIBRARY
Distribution 20 copies Mr. Ford
M office Copy
AN ADDRESS BY REP. GERALD R. FORD, R-MICH.
REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES
BEFORE THE NATIONAL CONVENTION OF
THE OPEN HEARTH AND BASIC OXYGEN STEEL COMMITTEE
AT DETROIT, MICHIGAN
6:30 P.M. MONDAY, APRIL 6, 1970
FOR RELEASE AT 6:30 P.M. MONDAY
In 1778, a French nobleman said of Americans, "They are the hope of the
world. They may become its model."
From that time forth, Americans have been envied and feared, seldom loved.
We have been much admired, much maligned, and much misunderstood. It might also
be said we have difficulty understanding ourselves.
It was another Frenchman, De Toqueville, who saw Americans clearly. In his
famous book, "Democracy in America," De Toqueville talked of the perpetual
dissatisfaction of Americans with their situation in life, their constant striving
for something better.
Said De Toqueville of Americans:
"They have all a lively faith in the perfectibility of man; they judge that
the diffusion of knowledge must necessarily be advantageous, and the consequences
of ignorance fatal; they all consider society as a body in a state of improvement,
humanity as a changing scene, in which nothing is, or ought to be, permanent; and
they admit that what appears to them today to be good, may be superseded by some-
thing better tomorrow."
De Toqueville put his finger on the key character trait of Americans --
their restlessness, their thirst for something better, their drive toward change,
the riveting of their eyes on tomorrow.
So it has always been in this great and glorious land we call America, and
so it is today.
We stand today on the threshold of great change. I am sure this is not
apparent to some, perhaps even to millions of Americans. I am not speaking of the
kind of changes sought by the violently revolutionary elements in our society but
of changes that are being wrought within and at the instigation of what is called
"The Establishment."
I am talking about the "new ecology." I am talking about welfare reform.
I am talking about population planning and population control. I am talking about
giving cities and states a percentage slice of Federal income tax revenue, and of
everything else that comes under the heading of "the New Federalism."
(more)
GERALD FORD LIBRARY
-2-
These are revolutionary changes, and they are changes which I believe are
not only acquiesced in but demanded by what has come to be known as The Silent
Majority.
In fact, if all of the exciting new programs now before the Congress are
enacted into law, we will see a greater reform of our political and social system
than at any time since the first administration of Franklin Delano Roosevelt. I
might add they will have come about because of a new atmosphere of reform that
harkens back to another similar era -- the days of Teddy Roosevelt.
Some of these reforms stem from the fact that we have witnessed the demise
of the New Deal, as surely as if a curtain had been drawn across the spectacular
drama which began with the Great Depression.
We have reached a point where Federal programs have piled upon Federal
programs in a mix that constitutes a mess, duplication that has mounted to chaos,
a multiplicity of Federal programs that has mayors and State officials groping for
Federal help as in a maze.
We are now striving to straighten out that mess, bringing order out of chaos,
cutting a direct route through the maze. We are reversing the flow of power. Far
too much power has become concentrated in Washington. We are seeking to turn some
of that power back to the cities and states.
This is what we call "the New Federalism." It can be found in the
Administration's proposed new comprehensive Manpower Training Act, the proposed
Family Assistance Act which would turn welfare into "workfare," changes in the
unemployment insurance system, and a long overdue Revenue Sharing Act.
This is a fundamental change in Federal policy -- a new approach in
manpower training, income maintenance, and Federal aid to cities and States with
top priority to local priorities.
We want to return more responsibilities to the States and local communities
and to help them with the fiscal burden of shouldering those responsibilities.
This is a sharp departure from the New Deal pattern of "the Federal bureaucrat
knows best and you'll do it our way or else."
As the President has stated, we want to do this "not as a way of avoiding
problems but as a better way of solving problems."
(more)
-3-
Last Sept. 24 I joined with more than 75 other members of the U.S. House of
Representatives to introduce legislation that will make federally-collected
revenues available for percentage sharing with the cities and states. The aim of
this legislation is to carry out a proposal made by President Nixon last August 13.
The introduction of this revenue-sharing bill marked the first time in
recent history that a concerted effort has been made to give states and local
governments funds that will allow them effectively to live up to their commitments
to their citizens.
Now, money flowing from the Federal Government to the states is being
dispensed in the form of categorical grants, with the Federal Government determin-
ing how and where the funds will be spent. The legislation we are seeking would
provide additional funds that states and cities could spend as they see fit.
There are those who lack confidence in the ability of states and local
governments to spend money effectively or properly. But we have no farther to
look than the Federal Government to see how great sums of money have been badly
spent on poorly devised programs devised for questionable reasons.
A majority of Americans have lost faith in heavily centralized government.
And the cause for that is not hard to find, for in the five years prior to 1969
we saw scores of new Federal programs enacted with tens of thousands of new
employees added to Federal payrolls and tens of billions of dollars spent with the
avowed aim of healing the Nation's grave social ills. Yet despite this massive
infusion of Federally-directed programs and dollars, the problems of our cities
deepened into flaming crisis.
I believe more and more Americans are turning away from the central
government to their local and State governments as the best way to deal with local
and State problems. Yet the Congress has not begun to move on revenue-sharing.
Earlier I mentioned manpower training in connection with the New Federalism.
I did so because at present mayors control none of the Federal manpower funds that
come into their cities under the Manpower Development and Training Act and the
Economic Opportunity Act.
In contrast, if the Administration's new Manpower Training Act was fully
implemented, the Nation's mayors would have administrative control over about
three-quarters of a billion dollars in Federal funds each year.
Instead of a large number of unrelated projects in a certain metropolitan
area, we would have one coherent program and one sponsor -- and the sponsor would
(more)
-4-
design a mix of services and program components uniquely suited to the needs of
the community.
I spoke at the outset about the insatiable desire of Americans to better
themselves. This has been translated throughout American history into what I
call the work ethic -- the idea that every man worth his salt works for a living
if he is able to do SO.
One of the most dramatic stories of American heroism unfolded during the
Great Depression when millions of families throughout the country found some way
to piece together a living.
While most Americans clung to the work ethic throughout the depression,
millions were forced onto the dole. Welfare became a way of life for them and
for their sons and daughters.
Today we have an opportunity to break the welfare cycle -- to make a viable
truth of the principle that it pays to work.
I am speaking of the proposal now before the Congress to wipe out the
scandalous welfare hangover of the depression days -- wipe it out by replacing it
with the Family Assistance Program, a new plan called "workfare." The new program
is called workfare because it encourages people to work.
Under the present welfare system, a poor man who is working can look across
the street at a family on welfare getting more for not working.
With workfare, the "disincentive" to work is removed. A poor family with a
working member will always get more than a family without a working member.
What we want is to take people off welfare rolls and put them on payrolls.
We think these people would rather have a hand up than a handout. They will if
the incentive is there.
The workfare program will show us what the dignity of work can do for a
human being. And it will help to keep families together. That, alone, will be
worth the price we must pay, for the family is the foundation on which our
republic is built. If the family is strong, the Nation will be strong.
And as we invest in human resources through the workfare program we must
also accept the expensive challenge of restoring the American environment --
cleaning up our air and water and dealing with the solid wastes that clutter up
our land.
The challenge of the "new ecology," as it is called, is being taken up by
government at all levels, the students in our colleges, and our forward-looking
industries.
(more)
-5-
It is a challenge that demands far more of us than putting a man on the
moon, magnificent as that mission was.
It is far more difficult because it involves far more than the assembling
of great brains and technology in pursuit of a clear-cut national goal. It does
involve the assembling of a complex technology but it also requires coordination
of effort on the part of the Federal, state and local governments.
I believe we can win the fight to save our environment. And the reason I
believe it is that we now have Presidential leadership in the effort. That makes
all the difference between empty rhetoric and a program that can move.
This is not a victory that can be won overnight. But I believe we can
establish a bridgehead this year and achieve victory within this decade. Let me
remind you that we do have a blueprint for victory in the fight to restore our
environment -- a 37-point battle plan which has been laid before the Congress by
the President of the United States.
This is just one bit of evidence that we are re-ordering our priorities at
the Federal level. We are winding down the Vietnam War -- extricating ourselves
from that tragic conflict halfway around the world -- and turning our priorities
around.
Let me give you dollars-and-cents proof of the shift in our priorities.
Let me point out to you that last year, as in every year since the Korean War,
national defense ate up the biggest part of the Federal dollar. In the fiscal
1971 budget, by contrast, the largest share of the Federal budget goes to the
civilian sector and specifically to human resources programs -- education, health,
welfare, veterans needs and manpower projects.
The shift is quite dramatic. In fiscal 1969, 44 per cent of the Federal
budget went to defense and 34 per cent to human resources. In fiscal 1971, nearly
the reverse is true, with 41 per cent going to human resources and 37 per cent to
defense.
I have talked tonight about policy changes made or sought by the Nixon
Administration, about the New Directions in which this country is moving.
I would be remiss if in addressing this audience I did not comment on the
policies this Administration has employed to move toward relative stability in
the economy and a new era of sound economic growth.
We have employed the techniques of restraint without coercion -- a holddown
in Federal spending and a tight rein on the money supply. We have refused to
employ what I call economic blackmail.
(more)
-6-
You have heard much criticism of the Administration for not reimposing price
and wage guidelines, putting industry and labor into a public fishbowl and whipping
the fishbowl into a froth if they engaged in wage and price actions deemed
inflationary by the White House.
We know how the guidelines worked in practice. While labor ignored the
wage guideline, major industry was publicly castigated for price increase announce-
ments and government business was withheld to whip companies into line. That, I
repeat, is economic blackmail and I am pleased that the Nixon Administration is
having no part of it. I, for one, do not think it naive to believe that when large
industrial concerns raise prices in a competitive field those price increases are
caused by rising costs and shrinking profit margins. So I make no apologies for
the Nixon Administration's refusal to go back to wage and price guidelines and to
jawboning.
I submit that the Nixon Administration's fiscal and monetary policies are
working in the fight against inflation. Wholesale prices have largely levelled
off. We have reached the point where a shift in policy is in order -- a shift to
less monetary restraint and some fiscal stimulus.
It may appear to some that the easing of monetary restraint is premature,
but in actuality it is well timed. We must remember that there is always a lag
before the impact of such actions is felt in the economy.
Besides slightly loosening the curbs on the economy, we must also focus on
the need to avoid the economic dislocation which would come from a nationwide
strike in transportation. There is a pressing need for quick congressional action
to improve our handling of national emergency labor disputes in the transport
field.
The President has laid proposals involving three carefully thought-out options
before the Congress -- options intended to bring about solutions in transportation
labor disputes through collective bargaining but also designed to provide a
solution of last resort if need be.
Congress cannot afford to delay action on this most pressing problem. We
must emulate the courage demonstrated by the President in formulating this major
labor legislation and proceed to implement it. I believe the entire Nation will
benefit. This is legislation not only in the public interest but in the interest
of the principals involved.
(more)
-7-
I would add a footnote. If the railroad labor dispute is not settled by
deadline time April 11, the Congress should impose the settlement proposed by the
President rather than simply to extend the deadline. It is time we showed a little
guts. If we don't, the problem will be back on Congress's doorstep in the near
future.
I have talked of problems here tonight, and I have talked of New Directions
in Washington and the Nation. Let me tell you that I have the greatest confidence
that we will surmount our difficulties of the moment and move this Nation to new
highs of growth and prosperity.
This will be a good year. Profits will improve on the whole. There will
be a pickup in sales. Big increases are planned in business investment for 1970,
particularly in the second half of the year. Auto sales are improving. The
decline in home building has leveled off, and the Administration is providing that
industry with stimulus.
There is much for Government to do -- and Government has done much. I think
we currently are correcting many of the mistakes of the recent past -- mistakes
that have brought us a tragic war, inflation, an unstable economy.
But we are remedying those errors. And to continue in that great work we
need more than just the actions of Government. There is no substitute for the
human spirit, the individual initiative that built America.
We need the will and the wisdom of the American people if we are to do all
that must be done to win the victory against the forces of defeatism at home and
armed aggression abroad.
Building on the past and learning from our errors, we can make America more
deserving than ever of the great pride we feel in her -- more worthy than ever to
serve as a model for other lands.
# # #
20 copies Mr. Ford
Q Office Copy
AN ADDRESS BY REP. GERALD R. FORD, R-MICH.
REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES
BEFORE THE NATIONAL CONVENTION OF
THE OPEN HEARTH AND BASIC OXYGEN STEEL COMMITTEE
AT DETROIT, MICHIGAN
6:30 P.M. MONDAY, APRIL 6, 1970
FOR RELEASE AT 6:30 P.M. MONDAY
In 1778, a French nobleman said of Americans, "They are the hope of the
world. They may become its model."
From that time forth, Americans have been envied and feared, seldom loved.
We have been much admired, much maligned, and much misunderstood. It might also
be said we have difficulty understanding ourselves.
It was another Frenchman, De Toqueville, who saw Americans clearly. In his
famous book, "Democracy in America," De Toqueville talked of the perpetual
dissatisfaction of Americans with their situation in life, their constant striving
for something better.
Said De Toqueville of Americans:
"They have all a lively faith in the perfectibility of man; they judge that
the diffusion of knowledge must necessarily be advantageous, and the consequences
of ignorance fatal; they all consider society as a body in a state of improvement,
humanity as a changing scene, in which nothing is, or ought to be, permanent; and
they admit that what appears to them today to be good, may be superseded by some-
thing better tomorrow."
De Toqueville put his finger on the key character trait of Americans --
their restlessness, their thirst for something better, their drive toward change,
the riveting of their eyes on tomorrow.
So it has always been in this great and glorious land we call America, and
so it is today.
We stand today on the threshold of great change. I am sure this is not
apparent to some, perhaps even to millions of Americans. I am not speaking of the
kind of changes sought by the violently revolutionary elements in our society but
of changes that are being wrought within and at the instigation of what is called
"The Establishment."
I am talking about the "new ecology." I am talking about welfare reform.
I am talking about population planning and population control. I am talking about
giving cities and states a percentage slice of Federal income tax revenue, and of
everything else that comes under the heading of "the New Federalism."
(more)
GERALO, FORD LIBRARY
-2-
These are revolutionary changes, and they are changes which I believe are
not only acquiesced in but demanded by what has come to be known as The Silent
Majority.
In fact, if all of the exciting new programs now before the Congress are
enacted into law, we will see a greater reform of our political and social system
than at any time since the first administration of Franklin Delano Roosevelt. I
might add they will have come about because of a new atmosphere of reform that
harkens back to another similar era -- the days of Teddy Roosevelt.
Some of these reforms stem from the fact that we have witnessed the demise
of the New Deal, as surely as if a curtain had been drawn across the spectacular
drama which began with the Great Depression.
We have reached a point where Federal programs have piled upon Federal
programs in a mix that constitutes a mess, duplication that has mounted to chaos,
a multiplicity of Federal programs that has mayors and State officials groping for
Federal help as in a maze.
We are now striving to straighten out that mess, bringing order out of chaos,
cutting a direct route through the maze. We are reversing the flow of power. Far
too much power has become concentrated in Washington. We are seeking to turn some
of that power back to the cities and states.
This is what we call "the New Federalism." It can be found in the
Administration's proposed new comprehensive Manpower Training Act, the proposed
Family Assistance Act which would turn welfare into "workfare," changes in the
unemployment insurance system, and a long overdue Revenue Sharing Act.
This is a fundamental change in Federal policy -- a new approach in
manpower training, income maintenance, and Federal aid to cities and States with
top priority to local priorities.
We want to return more responsibilities to the States and local communities
and to help them with the fiscal burden of shouldering those responsibilities.
This is a sharp departure from the New Deal pattern of "the Federal bureaucrat
knows best and you'll do it our way or else."
As the President has stated, we want to do this "not as a way of avoiding
problems but as a better way of solving problems."
(more)
-3-
Last Sept. 24 I joined with more than 75 other members of the U.S. House of
Representatives to introduce legislation that will make federally-collected
revenues available for percentage sharing with the cities and states. The aim of
this legislation is to carry out a proposal made by President Nixon last August 13.
The introduction of this revenue-sharing bill marked the first time in
recent history that a concerted effort has been made to give states and local
governments funds that will allow them effectively to live up to their commitments
to their citizens.
Now, money flowing from the Federal Government to the states is being
dispensed in the form of categorical grants, with the Federal Government determin-
ing how and where the funds will be spent. The legislation we are seeking would
provide additional funds that states and cities could spend as they see fit.
There are those who lack confidence in the ability of states and local
governments to spend money effectively or properly. But we have no farther to
look than the Federal Government to see how great sums of money have been badly
spent on poorly devised programs devised for questionable reasons.
A majority of Americans have lost faith in heavily centralized government.
And the cause for that is not hard to find, for in the five years prior to 1969
we saw scores of new Federal programs enacted with tens of thousands of new
employees added to Federal payrolls and tens of billions of dollars spent with the
avowed aim of healing the Nation's grave social ills. Yet despite this massive
infusion of Federally-directed programs and dollars, the problems of our cities
deepened into flaming crisis.
I believe more and more Americans are turning away from the central
government to their local and State governments as the best way to deal with local
and State problems. Yet the Congress has not begun to move on revenue-sharing.
Earlier I mentioned manpower training in connection with the New Federalism.
I did so because at present mayors control none of the Federal manpower funds that
come into their cities under the Manpower Development and Training Act and the
Economic Opportunity Act.
In contrast, if the Administration's new Manpower Training Act was fully
implemented, the Nation's mayors would have administrative control over about
three-quarters of a billion dollars in Federal funds each year.
Instead of a large number of unrelated projects in a certain metropolitan
area, we would have one coherent program and one sponsor -- and the sponsor would
(more)
-4-
design a mix of services and program components uniquely suited to the needs of
the community.
I spoke at the outset about the insatiable desire of Americans to better
themselves. This has been translated throughout American history into what I
call the work ethic -- the idea that every man worth his salt works for a living
if he is able to do SO.
One of the most dramatic stories of American heroism unfolded during the
Great Depression when millions of families throughout the country found some way
to piece together a living.
While most Americans clung to the work ethic throughout the depression,
millions were forced onto the dole. Welfare became a way of life for them and
for their sons and daughters.
Today we have an opportunity to break the welfare cycle -- to make a viable
truth of the principle that it pays to work.
I am speaking of the proposal now before the Congress to wipe out the
scandalous welfare hangover of the depression days -- wipe it out by replacing it
with the Family Assistance Program, a new plan called "workfare." The new program
is called workfare because it encourages people to work.
Under the present welfare system, a poor man who is working can look across
the street at a family on welfare getting more for not working.
With workfare, the "disincentive" to work is removed. A poor family with a
working member will always get more than a family without a working member.
What we want is to take people off welfare rolls and put them on payrolls.
We think these people would rather have a hand up than a handout. They will if
the incentive is there.
The workfare program will show us what the dignity of work can do for a
human being. And it will help to keep families together. That, alone, will be
worth the price we must pay, for the family is the foundation on which our
republic is built. If the family is strong, the Nation will be strong.
And as we invest in human resources through the workfare program we must
also accept the expensive challenge of restoring the American environment --
cleaning up our air and water and dealing with the solid wastes that clutter up
our land.
The challenge of the "new ecology," as it is called, is being taken up by
government at all levels, the students in our colleges, and our forward-looking
industries.
(more)
-5-
It is a challenge that demands far more of us than putting a man on the
moon, magnificent as that mission was.
It is far more difficult because it involves far more than the assembling
of great brains and technology in pursuit of a clear-cut national goal. It does
involve the assembling of a complex technology but it also requires coordination
of effort on the part of the Federal, state and local governments.
I believe we can win the fight to save our environment. And the reason I
believe it is that we now have Presidential leadership in the effort. That makes
all the difference between empty rhetoric and a program that can move.
This is not a victory that can be won overnight. But I believe we can
establish a bridgehead this year and achieve victory within this decade. Let me
remind you that we do have a blueprint for victory in the fight to restore our
environment -- a 37-point battle plan which has been laid before the Congress by
the President of the United States.
This is just one bit of evidence that we are re-ordering our priorities at
the Federal level. We are winding down the Vietnam War -- extricating ourselves
from that tragic conflict halfway around the world -- and turning our priorities
around.
Let me give you dollars-and-cents proof of the shift in our priorities.
Let me point out to you that last year, as in every year since the Korean War,
national defense ate up the biggest part of the Federal dollar. In the fiscal
1971 budget, by contrast, the largest share of the Federal budget goes to the
civilian sector and specifically to human resources programs -- education, health,
welfare, veterans needs and manpower projects.
The shift is quite dramatic. In fiscal 1969, 44 per cent of the Federal
budget went to defense and 34 per cent to human resources. In fiscal 1971, nearly
the reverse is true, with 41 per cent going to human resources and 37 per cent to
defense.
I have talked tonight about policy changes made or sought by the Nixon
Administration, about the New Directions in which this country is moving.
I would be remiss if in addressing this audience I did not comment on the
policies this Administration has employed to move toward relative stability in
the economy and a new era of sound economic growth.
We have employed the techniques of restraint without coercion -- a holddown
in Federal spending and a tight rein on the money supply. We have refused to
employ what I call economic blackmail.
(more)
-6-
You have heard much criticism of the Administration for not reimposing price
and wage guidelines, putting industry and labor into a public fishbowl and whipping
the fishbowl into a froth if they engaged in wage and price actions deemed
inflationary by the White House.
We know how the guidelines worked in practice. While labor ignored the
wage guideline, major industry was publicly castigated for price increase announce-
ments and government business was withheld to whip companies into line. That, I
repeat, is economic blackmail and I am pleased that the Nixon Administration is
having no part of it. I, for one, do not think it naive to believe that when large
industrial concerns raise prices in a competitive field those price increases are
caused by rising costs and shrinking profit margins. So I make no apologies for
the Nixon Administration's refusal to go back to wage and price guidelines and to
jawboning.
I submit that the Nixon Administration's fiscal and monetary policies are
working in the fight against inflation. Wholesale prices have largely levelled
off. We have reached the point where a shift in policy is in order -- a shift to
less monetary restraint and some fiscal stimulus.
It may appear to some that the easing of monetary restraint is premature,
but in actuality it is well timed. We must remember that there is always a lag
before the impact of such actions is felt in the economy.
Besides slightly loosening the curbs on the economy, we must also focus on
the need to avoid the economic dislocation which would come from a nationwide
strike in transportation. There is a pressing need for quick congressional action
to improve our handling of national emergency labor disputes in the transport
field.
The President has laid proposals involving three carefully thought-out options
before the Congress -- options intended to bring about solutions in transportation
labor disputes through collective bargaining but also designed to provide a
solution of last resort if need be.
Congress cannot afford to delay action on this most pressing problem. We
must emulate the courage demonstrated by the President in formulating this major
labor legislation and proceed to implement it. I believe the entire Nation will
benefit. This is legislation not only in the public interest but in the interest
of the principals involved.
(more)
-7-
I would add a footnote. If the railroad labor dispute is not settled by
deadline time April 11, the Congress should impose the settlement proposed by the
President rather than simply to extend the deadline. It is time we showed a little
guts. If we don't, the problem will be back on Congress's doorstep in the near
future.
I have talked of problems here tonight, and I have talked of New Directions
in Washington and the Nation. Let me tell you that I have the greatest confidence
that we will surmount our difficulties of the moment and move this Nation to new
highs of growth and prosperity.
This will be a good year. Profits will improve on the whole. There will
be a pickup in sales. Big increases are planned in business investment for 1970,
particularly in the second half of the year. Auto sales are improving. The
decline in home building has leveled off, and the Administration is providing that
industry with stimulus.
There is much for Government to do -- and Government has done much. I think
we currently are correcting many of the mistakes of the recent past -- mistakes
that have brought us a tragic war, inflation, an unstable economy.
But we are remedying those errors. And to continue in that great work we
need more than just the actions of Government. There is no substitute for the
human spirit, the individual initiative that built America.
We need the will and the wisdom of the American people if we are to do all
that must be done to win the victory against the forces of defeatism at home and
armed aggression abroad.
Building on the past and learning from our errors, we can make America more
deserving than ever of the great pride we feel in her -- more worthy than ever to
serve as a model for other lands.
###