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GOP Fund-Raising Dinner, Las Cruces, NM, March 23, 1968
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4526105
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GOP Fund-Raising Dinner, Las Cruces, NM, March 23, 1968
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Gerald R. Ford Congressional Papers
Speeches
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Civil disobedience
Crime
Inflation (Finance)
Labor disputes
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Vietnam War, 1961-1975
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1968-03-31
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1968
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1968
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The original documents are located in Box D24, folder "GOP Fund-Raising Dinner, Las Cruces, NM, March 23, 1968" 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 The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. DRY CLEANERI NOTES I suggest your topic be: "The Issues of 1968--a Republican View." - 1. Ask two opposing candidates what the issues are you get two entirely different answers. 2. The people determine the issues, not the candidates. The issues are always matters of vital concern to the voters. 3. In the broad sense, there are only two issues--the issue of war and peace both at home and abread, and FORD the issue of genuine economic progressx for us all--REAL presperit II/DRY CLEAN NOTES 4. All of the issues of 1968 fall under these two broad headings and are inter-relmated. as I seethem 2 5. The major issuestare riots, crime, inflation and the value of the dollar, taxes and the general health of the economy, and the Vietnam War. war and 6. We talk of peace at home as well as abroad because some 120 of our cities were ripped by riots in 1967-Detroit suffering the worst. Digitized from Box D24 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library III/DRY CLEANER NOTES 7. The President has predicted more of the same in 1968. I don't think it helps to talk as though riots are inevitable. This may encourage rioting. We should prepare for the worst but try to promote the best. 8. We must move on a number of fronts to attack the conditions which breed riots. The chief target should be to train ghetto youths for good-paying jobs and then provide them with jobs with dignity. According to the National Advisory Commission on Civil Disorders, hostility and r acial pride IV/DRY CLEANERRAWZK NOTES underlay the riots. This appears to be a valid analysis. We should, then, seek to treat the Negro with dignity and place him through tr sining in a job he can be proud of and thus seek to wipe out at least some of the hostility between the races. 9. Present government training programs must be supplemented in massive degree by on-the-job training programs in industry. This can be triggered through tax credits for party of and the training costs through direct subsidy. This is the V./DRY CLEANER NOTES kind of action that should have been taken years ago. If 1s had been, we might never have had the riots which since 1965 have resulted in more than 100 deaths, nearly 2,500 injury 7,985 cases of arson, 28,939 arrests, 5,434 convictions, $210 million in property damage, and $504 million in estimated economic losses. 10. Smallbusinessmen in areas where riots may break out are natural ly concerned about economic loss. There is no excuse for the conditions which breed riots, but neither is there any excuse for riots or criminal activity associated with them. VI. DRY CLEANER NOTES 11. We must deal firmly with lawbreakers whether they a re rioters or professional criminals. To do less is to encourage widespread lawlessness. We must restore respect for the law in this country. We must restore the rule of law, or we will never again enjoy domestic tranquillity. 12. A general atmosphere of disregard for the law has enveloped this country since 1960. It has never been true that the 1 end justifies the means, because this attitude leads to accomplete breakdown of law and order This is what has happened in this country in the last four years. A tolerance of civil disobediance has produced a general disregard for the law. This is one of the factors in the tremendous upsurge in crime throughout the Nation. 13. The crime rate, according to official FBI figures, has gone up 83 per cent (not 88) since 1960 while the resident population has grown by 11 per cent. This means that faster than crime has grown nearly eight times the population. ARV VIII. DRY CLEANER NOTES 14. Crime prevention and law enforcement are primarily a local function but the federal government can help. Federal help should have been on the way long ago but the President has not exhibited the necessary S ense of urgency. The House of Representatives passed a Law Enforcement Asspistance Act last year but the President did nothing to push it through the Senate, perhaps because House FORD Republicans amended it in severall major respects. We & improved its by providing that local law enforcement efforts be coordinated on the basis of approved state plans. The VX. DRY CLEANER NOTES President wanted to funnel the money directly to the cities with the Attorney General deciding who got what and how much. One of the problems in local law enforcement now is overlapping of local jurisdictions and lack of proper coordination. The Republican amendments were designed to correct this situation. The President's plani would have aggravated / these problems. 15. The federal role in law enforcement bears directly on organized crime and the syndicates. In that connection, Republicans believe that wiretapping should be permitted under X. DRY CLEANERNEN NOTES careful supervision of the courts-- only under court order--and only in cases involving major crimes, so-called organized crime. The President would deprive law enforcement agencies of this important tool. He would restrict its Republicans use to national security cases. think this is a mistake, and we believe the Congress will so decide. Americans should demand that the Senate pass the House-approved Law Enforcement Assistance Act and that both House and Senate approve the use of wire-tapping under court order in cases involving major federal crimes. XI. DRY CLEANER NOTES 16. Next to riots and crime, Americans are perhaps most distrurbed by inflation and the Vietnam War. The upward push on prices continues, and the debate over a possible increase in the federal income tax continues. Both related to the Vietnam Wary but spread far wider. 17. The pres nt inflationary cycle actual ly began in late 1965 when the Federal Reserve $ Board warned the President that price stability was - endangered by overheating of the economy. The board wanted spending cuts and a tax increase. EII. DRY CLEANER NOTES 18. Republicans in Congress pressed for a holddown in domestic spending to offset a rise in defense spending for the Vietnam War. 19. Leading economists early in 1966 joined the Fed. Res. Board in urging a tax increase. 20. President J. refused either to hold down domestic spending or to ask for a tax increase. Result: Inflation. 21. When the President talked in January 1967 about FORD the need for a tax increase, the best time for it had passed. BRA The economy went into mini-recession early in 1967, and it XIII. DRY CLEANER NOTES was not until August 1967 that the President felt safe in actually placing a tax increase before the Congress. By that time, the inflation the country was experiencing had changed in character. In 1966, it was a demand-pull kind of inflation--excessive demand pulliing prices upward. Meantime organized labor had won substantial wage increases in a number of important industries, and the cost of raw materials also had gone up. By late 1967 U.S. inflation had turned to the cost-push variety--increased production costs exerting an up ward push on prices while profit margins declined dramatically. XIV. DRY CIEANER NOTES 22. As recently as the end of last year, leading economists were saying the President should either scale the tax increase request back to 6 per cent from 10 or should foraget about it altogether. They foresaw a soft second half for the economy in 1968 and figured a tax increase coming about the middle of the year would be damaging to the economy. FORD 23. Meantime the dollar has come under attack in Europe. Europeans have lost confidence in the dollar. They prefer gold. The goad pool nations as a holding action XV. DRY CLEANER NOTES have shut down the London gold market and have adopted a two-price system for gold. This just buys time for the United States to get its balance of payments situation straightened out. 24. But hope of eliminating the balance of payments deficit condition may be wiped out by rising demands of the Vietnam War and deterioration of our position there since the RD Communist Tet offensive. In other words, any LIBRARY balance of payments savings accomplished through special restrictions on foreign investment and travel may be offset by spending of additional billions on Vietnama due to XVI. DRY CLEANERN NOTES increased demands for troops. 24. This Nation faces a situation where sharp belt-tightening is in order on the home front. As a minimum, federal spending on domestic programs should be held to the fiscal 1968 level, not sharply accelerated as the President proposes. The country is faced with the need for drastic action because more moderate action was not taken beginning with the inflationary upsurge of late 1965 RAR and early 1966. We now are paying for that major mistake. XVII. DRY CLEANER NOTES 25. In view of the present critical situation in Vietnam and on the international financial scene, I am keeping an open mind on a tax increase. I have been opposed to a tax increase to date because the first need is to hold down domestic spending rather than load more taxes on individual Americans and ont our busine ssmen. One is tempted to say that it was President J. and the wild-spending 89th Congress that got us into LIBRAR, this mess; the President and the Democrats in Congress should get us out of it. XVIII. DRY CIEANERN NOTES 26. For more than three years Republicans have been calling for an austerity program in recognition of the fact that heavy domestic spending coupled with war spending was taking us down the road to financial disaster as a Nation and a people. President Johnson ignored our pleas. Now the President talks of an austerity program. He appears FORD suddent] to have gotten religion. But we must wait to see just how genuine the conversion is. He is proposing LIBRARY reductions of $8 or $9 billions in his budget requests, as I understand it. This may amount to actual spending cuts of XIX. DRY CLEANER NOTES only $4 billion or so below spending the level anticipated by the President for fiscal 1969. The President wants to couple that with his 10 per cent tax surcharge I would like to (-6y#86illion? see spending cut more deeply than that with the possibility that the income tax increase could be avoided altogether. But as I said earlier I am keeping an open mind on the subject of the tax increase. FORD 27. There is always the possibility that the President LIBRA will so escalate the Vietnam War that the present cost of about $30 billion a year could go to $35 billion or more. We then would have to view the tax increase in that light. XX. DRY CLEANER NOTES lost 28. The President appears to have hope for a negotiated settlement in Vietnam. He seems to have adopted the idea of achieving military victory. I feel we must regain the initiative in Vietnam because only in that way can we lay the groundwork for an honorable conclusion of the war. Ending the Vietnam War under conditions which wills enable us ultimately to win the peace should be the first priority of the American people. At the same time we must restore this Nation to fiscal sanity if we are to make realt progress at home. #### (MORE) DRY CLEANERS .WORK STOPPAGES The inflation that doomed the bo om of 1965-66 has produced a highly volatile labor-management relations and pricing situation. Prices remained relatively stable until late 1965 when inflationary pressures clearly began to push prices upward and the President's wage-price guidelines began coming apart at the seams. The White House ostensibly had been seeking to maintain price stability by insisting that wage increases generally conform with increases in productivity. But the Administration did not ride herd on labor, and the guidelines were violated repeatedly beginning in 1965. Currently we see labor costs XXXXXX WORK STOPPAGES...2 rising twice as fast as improvement in productivity (source, Raymond Saulnier). In AN fact, this has been going on for two years, with no end in sight. Last year was a banner year for strikes. Maj or union settlements averaged 51/2 per cent a year over the life of the contracts. Several prominent settlements lastyear exceeded 6 per c ent a year. Council Economic Advisers Says the President in Mis their Economic Report for 1968, "If new union settlements were to average even higher in 1968 than in 1967, a clear acceleration of price increases would be likely in 1968." (Econ. Rept, p. 125). WORK STOPPAGES Council The President also notes in Economic Report that "some unions have already taken this figure (6 per cent) as their target to meet or beat in negotiations during 1968.' The President's actions in the copper strike indicate he has no intention of seeking improvements in federal laws for the handling of major work stoppages. I believe that if the President had moved to cool off the overheated economy in early 1966 we would not now have the distortions we have in labor costs as related to productivity. The latest increase in the MINIMUM WAGE minimum wage also presents us with a serious problem. The 1967 increase for the most part restored the minimum wage to a more typical relationship with the average wage level Economic Report for 1968. in the e conomy 1 But the 1968 increase was a whopping 14 per cent...from $1.40 to $1.60 an hour. It will have a great impact. There are two aspects to legislating a wage floor. One argument is that this is necessary to ensure the payment of a living wage. Another is that AR certain workers may be priced right out of the labor market if the minimum is raised without regard to production MINIMUM WAGE 2 costs. I think that is happening right now..and when it does happen, raising the minimum wage does great harm to our marginal workers, those without any special skills. We should instead concentra te on upgrading workers so they will actually be worth more and thus can earn a better living on their own merits. ORD It M just makes sense that if the minimum wage is raised to an artificially high level in relation to other wages and of productivity people will get hurt.### a lot CONGRESSMAN NEWS GERALD R. FORD HOUSE REPUBLICAN LEADER RELEASE --FOR RELEASE AT 6:30 P.M. MT. TIME-- March 23, 1968 Excerpts from a Speech by House Republican Leader Gerald R. Ford, R-Mich., at a GOP Fund-Raising Dinner Saturday evening, March 23, 1968, at Las Cruces, N.M. Recent events have greatly improved Republican chances for a smashing victory in November. The Republican Party will go into the 1968 election campaign more united than perhaps ever before in its history. This is a good omen. This is one of the necessary ingredients for a broad- scale Republican victory. This enlarges the opportunity Republicans have to win the White House, take control of the U.S. House of Representatives and to make substantial gains in the U.S. Senate. Great victories will be ours if we do everything possible to capitalize on our favorable position. Our prospects are bright because the American people are becoming convinced of the fact that the Republican Party is best equipped to end the war and win the peace both at home and abroad, and to restore genuine prosperity in this Nation. Our outlook is good because if you flip the coin over you see that the Democratic Party has failed the American people on almost every one of the basic promises it made in 1960 and 1964. The Democratic Party has failed the young men who were promised they would never be sent to do the job Asian boys should be doing. The Democratic Party has failed the farmer who was promised his fair share of the fruits of the American economy. The Democratic Party has failed the consumer who was promised price stability The Democratic Party has failed the worker who was promised increased purchasing power. In sum, the Democratic Party has failed all of the American people on all of the counts that add up to peace and real prosperity. Postmaster General Larry O'Brien, who will be masterminding Lyndon Johnson's reelection campaign, recently said the President will seek reelection on the basis of his record. That is wonderful news. Let's look at that record and tell it like it is--not as the Johnson-Humphrey Administration would like people to believe. (more) -2- If we tell it like it is we see that the Johnson-Humphrey Administration has brought us a constant and continuing deterioration of the dollar, some of the highest interest rates in a hundred years, a spiraling crime rate that has made streets of fear of our city pavements, a breakdown of law and order which has made nearly every major American city the seedbed for racial riot and a potential war between the races, price inflation and cost inflation that make special victims of the pensioner and the farmer while hurting every American, strikes that have threatened the Nation's health, education and welfare as Americans tried to catch up with Johnson-Humphrey inflation, inflation that wipes out the worker's wage gains, massive and repeated federal deficits that cause other nations to view the dollar with distrust, a gold outflow that threatens to drain away our entire gold stock, moves to restrict the freedom of Americans to travel and to invest abroad, a limited war fought in a way that is pointing toward unlimited disaster, stalemate in Vietnam, humiliation at the hands of North Korea, the distrust of both Israelis and Arabs because of our non-policy in the Middle East, drift in Europe and a sundering of the once-strong ties that bound NATO together, danger that the Soviet Union will upset the balance of power through- out the world and surpass us in nuclear capability. That is a long list and there's more. Kind of leaves you breathless, doesn't it? It should leave the Administration speechless. But this Administration, from the President on down, has been doing plenty of talking in the past four years--and that's on the record, too. That record is one of serious misjudgments both on the war and the home front, misleading statements if not deliberate distortions, and direct contradictions. The farmer has been caught squarely in the middle as the Johnson-Freeman Administration has tried to put the best possible face on its mistakes. We all remember when the Johnson-Freeman Administration made the farmer the scapegoat of inflation in 1966. Republicans know that never before have our farmers produced so much and been paid so little for it. We know that Johnson- Freeman Administration policies forced the Nation's farmers to take a $11/2 billio pay cut this past year while increased profits to the middlemen and the handlers pushed food prices upward. The message I bring you tonight is that no country, no matter how rich or powerful, can follow the Johnson-Freeman-Humphrey path of continuous inflation without inviting financial disaster. I invite America to follow Republicans on the road to genuine prosperity and peace. ### CONGRESSMAN NEWS GERALD R. FORD HOUSE REPUBLICAN LEADER RELEASE --FOR RELEASE AT 6:30 P.M. MT. TIME-- March 23, 1968 Excerpts from a Speech by House Republican Leader Gerald R. Ford, R-Mich., at a GOP Fund-Raising Dinner Saturday evening, March 23, 1968, at Las Cruces, N.M. Recent events have greatly improved Republican chances for a smashing victory in November. The Republican Party will go into the 1968 election campaign more united than perhaps ever before in its history. This is a good omen. This is one of the necessary ingredients for a broad- scale Republican victory. This enlarges the opportunity Republicans have to win the White House, take control of the U.S. House of Representatives and to make substantial gains in the U.S. Senate. Great victories will be ours if we do everything possible to capitalize on our favorable position. Our prospects are bright because the American people are becoming convinceu of the fact that the Republican Party is best equipped to end the war and win the peace both at home and abroad, and to restore genuine prosperity in this Nation. Our outlook is good because if you flip the coin over you see that the Democratic Party has failed the American people on almost every one of the basic promises it made in 1960 and 1964. The Democratic Party has failed the young men who were promised they would never be sent to do the job Asian boys should be doing. The Democratic Party has failed the farmer who was promised his fair share of the fruits of the American economy. The Democratic Party has failed the consumer who was promised price stability The Democratic Party has failed the worker who was promised increased purchasing power. In sum, the Democratic Party has failed all of the American people on all of the counts that add up to peace and real) prosperity. Postmaster General Larry O'Brien, who will be masterminding Lyndon Johnson's reelection campaign, recently said the President will seek reelection on the basis of his record. That is wonderful news. Let's look at that record and tell it like it is--not as the Johnson-Humphrey FORD Administration would like people to believe. (more) GERALD LIBRARY -2- If we tell it like it is we see that the Johnson-Humphrey Administration has brought us a constant and continuing deterioration of the dollar, some of the highest interest rates in a hundred years, a spiraling crime rate that has made streets of fear of our city pavements, a breakdown of law and order which has made nearly every major American city the seedbed for racial riot and a potential war between the races, price inflation and cost inflation that make special victims of the pensioner and the farmer while hurting every American, strikes that have threatened the Nation's health, education and welfare as Americans tried to catch up with Johnson-Humphrey inflation, inflation that wipes out the worker's wage gains, massive and repeated federal deficits that cause other nations to view the dollar with distrust, a gold outflow that threatens to drain away our entire gold stock, moves to restrict the freedom of Americans to travel and to invest abroad, a limited war fought in a way that is pointing toward unlimited disaster, stalemate in Vietnam, humiliation at the hands of North Korea, the distrust of both Israelis and Arabs because of our non-policy in the Middle East, drift in Europe and a sundering of the once-strong ties that bound NATO together, danger that the Soviet Union will upset the balance of power through- out the world and surpass us in nuclear capability. That is a long list and there's more. Kind of leaves you breathless, doesn't it? It should leave the Administration speechless. But this Administration, from the President on down, has been doing plenty of talking in the past four years--and that's on the record, too. That record is one of serious misjudgments both on the war and the home front, misleading statements if not deliberate distortions, and direct contradictions. The farmer has been caught squarely in the middle as the Johnson-Freeman Administration has tried to put the best possible face on its mistakes. We all remember when the Johnson-Freeman Administration made the farmer the scapegoat of inflation in 1966. Republicans know that never before have our farmers produced so much and been paid so little for it. We know that Johnson- Freeman Administration policies forced the Nation's farmers to take a $11/2 billio pay cut this past year while increased profits to the middlemen and the handlers pushed food prices upward. The message I bring you tonight is that no country, no matter how rich or powerful, can follow the Johnson-Freeman-Humphrey path of continuous inflation without inviting financial disaster. I invite America to follow Republicans on the road to genuine prosperity and peace. ###