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    "label": "Annual Convention of the Pennsylvania Bankers Association, Atlantic City, NJ, May 26, 1969",
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    "id": "4526203",
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    "title": "Annual Convention of the Pennsylvania Bankers Association, Atlantic City, NJ, May 26, 1969",
    "citationUrl": "https://catalog.archives.gov/id/4526203",
    "collections": [
        "Gerald R. Ford Congressional Papers",
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    "subjects": [
        "Banks and banking",
        "Credit",
        "Economics",
        "Inflation (Finance)",
        "Legislation"
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    "ocrText": "The original documents are located in Box D27, folder \"Annual Convention of the\nPennsylvania Bankers Association, Atlantic City, NJ, May 26, 1969\" of the Ford\nCongressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential\nLibrary.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box D27 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\nANNUAL CONVENTION OF THE PA. BANKERS ASSOC,\nATLANTIC CITY, NEW JERSEY, 10:30 A.M.\nMONDAY, MAY 26, 1969\nGOOD MORNING, GENTLEMEN: IT'S A\nGREAT PLEASURE FOR ME TO JOIN YOU HERE IN\nTHIS EXCITING RESORT CITY.\nI HAVE ALWAYS FELT AT HOME TALKING\nVirgen WITH BANKERS BECAUSE I HAVE ALWAYS FELT\nTHEY HAD MY INTEREST AT HEART.\nMARK TWAIN, OF COURSE, HAD A LITTLE\nDIFFERENT OUTLOOK ON BANKERS. HE SAID\n\"A BANKER IS A FELLOW WHO LENDS YOU HIS\nUMBRELLA WHEN THE SUN IS SHINING AND WANTS\nIT BACK THE MINUTE IT BEGINS TO RAIN.\" \"\nmy good frands\nI HAVE A HUNCH MAYBE DAVID KENNEDY\nAND BOB MAYO WISH THEY HAD GOTTEN THEIR\nUMBRELLAS BACK BEFORE THEY LEFT CHICAGO FOR\nFORD\nWASHINGTON. BUT THEN SECRETARY KENNEDY\nDIDN'T REALIZE THAT HOUSE BANKING AND\nGERA\nCURRENCY CHAIRMAN WRIGHT PATMAN CALLS HIMSELF\n-2-\n\"THE LITTLE OLD RAINMAKER.\"\nA\nHOMESPUN PHILOSOPHER WHO ALSO\nHAPPENED TO BE A SONG WRITER ONCE SAID,\n\"INTO EACH LIFE SOME RAIN MUST FALL\nRIGHT NOW I THINK WE'RE ALL ENJOYING\nour home + A\nCONSIDERABLE QUANTITY OF SUNSHINE.\nI RECALL A TIME LAST YEAR WHEN THE\nMILITANTS IN THIS COUNTRY WERE SHOUTING THAT\nTHEY WERE GOING TO \"TURN THIS COUNTRY\nAROUND\" OR BURN IT DOWN.\nHopefully t\nmedically\nWE ARE TURNING THIS COUNTRY AROUND\nslowly but surely\nTURNING IT TOWARD PERMANENT PEACE AND\nGENUINE\nBecause the PROSPERITY. vast majority of americans are becomeny alamed of & arrund\nWE ARE TURNING THIS COUNTRY AROUND\nAWAY FROM THE ARSONISTS AND ANARCHISTS.\nTHERE IS A NEW FIRE IN THIS COUNTRY --\nTHE FIRE OF FAITH. THE FIRES OF FAITH HAVE\nBEEN RELIT IN THIS COUNTRY -- FAITH IN OUR\nFREE INSTITUTIONS, FAITH IN THE FREE\nENTERPRISE SYSTEM, FAITH THAT THE PRINCIPLE\n-3-\nOF FREEDOM ULTIMATELY WILL PREVAIL IN THE\nSCALES OF WORLD JUSTICE, FAITH THAT OUR\nNATIONAL GOVERNMENT WORKING WITH STATE AND\nLOCAL LEADERS AND OUR PRIVATE INSTITUTIONS\nCAN SOLVE THE CRUSHING PROBLEMS OF OUR\nTIMES.\nTHERE HAS BEEN A VAST CHANGE IN THE\nMOOD OF THE AMERICAN PEOPLE, A SHIFT IN\nTHE TIDE. THERE IS A TIDE FOR CHANGE, BUT\nIT IS A TIDE FOR CHANGE BASED ON CAREFULLY\nREASONED DECISIONS AND ON THE GREAT FORCE\nFOR GOOD THAT FLOWS FROM PEOPLE WORKING\nWITH PEOPLE CHANGE RISING FROM EVOLUTION\nAND NOT REVOLUTION.\nTHE FORCES OF REVOLUTION ARE AT WORK\nIN THIS COUNTRY BUT THEY WILL NOT PREVAIL.\nAS THE GREAT PHILOSOPHER PLUTARCH PUT IT:\n\"PERSEVERANCE IS MORE PREVAILING THAN\nGERALD LEGARET\nVIOLENCE; AND MANY THINGS WHICH CANNOT BE\nOVERCOME WHEN THEY ARE TAKEN TOGETHER YIELD\n-4-\nTHEMSELVES WHEN TAKEN LITTLE BY LITTLE.\"\nWE HAVE BEEN LIVING UNDER A NEW\nNATIONAL ADMINISTRATION FOR FOUR MONTHS.\nTHE ADMINISTRATION CHANGED, BUT THE PROBLEMS\nREMAINED. THEY DID NOT DISAPPEAR.\nONE DIVIDEND FROM A CHANGE IN\nNATIONAL ADMINISTRATIONS IS A CHANGE IN\nOUTLOOK -- REEXAMINATION OF THE PROBLEMS,\nA SEARCHING-OUT OF DEFICIENCIES, A DEVISING\nOF NEW APPROACHES.\nTHE NEW ADMINISTRATION HAS FIRST OF\nALL ESTABLISHED THE PROCESS OF EFFECTIVE\nDECISION-MAKING AND HAS GIVEN OUR NATIONAL\nPROBLEMS FRESH ANALYSIS.\n2 believe\nAS A RESULT, WE HAVE MADE SUBSTANTIAL\nPROGRESS IN JUST FOUR MONTHS -- AS A NATION\nAND AS A PEOPLE.\nTHIS IS TRUE BY ANY\nSTANDARD\nWE NOW SEE A REALISTIC MOVEMENT\nTOWARD PEACE IN VIETNAM SOME PROGRESS\nbecame The migotiators are ducusing issues not the shape f The table\n-5-\nTOWARD CREATING A FRAMEWORK FOR\nSRAELI -ARAB PEACE NEGOTIATIONS IN THE\nMIDDLE EAST A PULLING TOGETHER OF THE\nWESTERN ALLIANCE, AND STEPS TOWARD ARMS\nCONTROL TALKS WITH THE SOVIET UNION.\nWE HAVE MADE PROGRESS TOWARD\nSupreme\norganizal inms pronography t absept marchtics\nCOMBATING CRIME; PROGRESS TOWARD REBUILDING\nOUR CITIES; PROGRESS TOWARD BRINGING\nINFLATION UNDER CONTROL; PROGRESS TOWARD\nREFORMING OUR TAX STRUCTURE.\nTHERE WILL BE TAX REFORM THIS\nYEAR -- AND IT PROBABLY WILL GO BEYOND THE\nNIXON ADMINISTRATION'S RECOMMENDATIONS.\nTHE NATIONAL MOOD UNDERSCORES THE NEED FOR\nIT, AND CONGRESS WILL RESPOND.\nADMINISTRATION OFFICIALS ARE WORKING\nCLOSELY WITH THE HOUSE WAYS AND MEANS\nCOMMITTEE. THE COMMITTEE IS ON SCHEDULE.\nTHE PLAN IS TO MOVE A TAX REFORM BILL\nGERALD\nDILBRARY\nTHROUGH THE HOUSE BEFORE THE CONGRESS TAKES\nmid august\n-6-\nA SUMMER RECESS IN MID-AUGUST.\nThis is handget one\nTHIS POINT IT IS IMPOSSIBLE TO\nSAY WHAT THE WAYS AND MEANS COMMITTEE WILL\nDO IN DEALING WITH TAX-EXEMPT BONDS. THIS\nIS THE MOST COMPLEX PROBLEM FACING THE\nCOMMITTEE. as you know There are constitutional X other\nTHERE IS SOME TALK OF TAXING STATE make\nproblems. 2 do not agree with The political demogozues who it\nappear\nAND MUNICIPAL BONDS AND THEN REIMBURSING there\nis\nMr\nment wa TH\nSTATE AND LOCAL UNITS OF GOVERNMENT FOR THE\nADDITIONAL INTEREST COSTS RESULTING FROM\nELIMINATION OF TAX EXEMPTION. BUT WHO WOULD\nDECIDE EXACTLY HOW MUCH INTEREST ADD-ON\nOCCURRED IN EACH INSTANCE? HOW WOULD IT BE\nCOMPUTED?\nAND OF COURSE THERE ALSO IS THE\nINEQUITY TO INDIVIDUALS THAT ARISES FROM\nTAXING NEW ISSUES OF STATE AND MUNICIPAL\nBONDS WHILE OUTSTANDING BONDS CONTINUE TO\nBE TAX-EXEMPT.\nNOW MEETING IN EXECUTIVE SESSION,\n-7-\nTHE WAYS AND MEANS COMMITTEE HAS BEFORE IT\nPRESIDENT NIXON'S TAX REFORM PROPOSALS PLUS\nTHE CONTINUING ADVICE OF ADMINISTRATION\nOFFICIALS AND THE BENEFIT OF TESTIMONY\nTAKEN IN THE COMMITTEE'S PUBLIC HEARINGS.\nTHE LEGISLATION SHAPED IN THESE EXECUTIVE\nSESSIONS COULD BE QUITE FAR REACHING. BUT\nONE WOULD HAVE TO POSSESS THE WISDOM OF\nSOLOMON TO PREDICT THE NET RESULT.\nAT THIS POINT I WOULD LIKE TO SAY\nA FEW WORDS ABOUT PROSPECTS FOR BANK HOLDING\nCOMPANY LEGISLATION IN THE 91st CONGRESS.\nagain\nTHE SHAPE OF THE LAW TO COME IS\nUNCLEAR BUT I AM CONVINCED THE 91st CONGRESS\nWILL ENACT SOME FORM OF BANK HOLDING COMPANY\nLEGISLATION. AT THIS POINT, THE TIMING\nALSO IS UNCERTAIN.\nAS YOU KNOW, THE NIXON ADMINISTRATION\nHAS SPONSORED A BILL WHICH IS DIFFERENT IN\nMANY RESPECTS FROM EITHER THE PATMAN OR\nLIBRARY\n-8-\nPROXMIRE BILLS.\nBECAUSE OF THE STRONG ANTI - BANK BIAS\nOF CHAIRMAN PATMAN I DO NOT THINK THE\nto put it mildly\nBILL REPORTED OUT BY THE HOUSE BANKING AND\nCURRENCY COMMITTEE WILL necessary DETERMINE THE\nULTIMATE FORM OF THE LEGISLATION AS ENACTED.\nI WOULD ADD THAT I DO NOT THINK CONGRESS AS\nA WHOLE WILL TREAT THIS SUBJECT IN PARTISAN\nFASHION.\nI WOULD LIKE TO SOUND THIS NOTE OF\nCAUTION. I AM CONCERNED THAT MANY BANKERS\nREGARD THIS SUBJECT AS PURELY A BANK HOLDING\nCOMPANY ISSUE. BANKERS EVERYWHERE SHOULD\nREALIZE THAT THE EXTENT TO WHICH CONGRESS\nDEFINES BANK-RELATED ACTIVITIES FOR HOLDING\nCOMPANIES IS BOUND. TO AFFECT THE FUTURE\nDEFINITION OF RELATED ACTIVITIES FOR\nINDIVIDUAL BANKS AS WELL.\nYOU ALSO ARE INTERESTED IN THE\nFORD LIBRARY\nTRUTH-IN-LENDING ACT, WHICH WILL BECOME\n-9-\nEFFECTIVE IN MANY RESPECTS ON JUNE 30\nTHROUGH REGULATION Z. I AM AWARE THAT THE\nBANKING INDUSTRY OPPOSED THIS LEGISLATION\nTO SOME DEGREE. BUT MANY OF THE BANKING\nINDUSTRY'S LEADERS NOW SEE THE SITUATION AS\nA GREAT OPPORTUNITY FOR BANKING, AND I\nAGREE.\nMANY COMPETITIVE BENEFITS WILL RESULT\nFOR BANKS FROM THE FACT THAT DISCLOSURE OF\nANNUAL FINANCE CHARGES WILL NOW BE REQUIRED\nWITH REGARD TO CONSUMER CREDIT TRANSACTIONS\nAND CREDIT ADVERTISING.\nTHERE IS ONE BY-PRODUCT OF THE\nTRUTH-IN-LENDING ACT WHICH CONCERNS ME. AT\nTHE SAME TIME I SEE IT AS AN OPPORTUNITY\nFOR OUR NATION'S BANKS.\nIN MY VIEW, SPONSORS OF THE\nLEGISLATION WERE OVERZEALOUS IN THEIR DESIRE\nall the complicated mathematics\nTO DISCLOSE EVERYTHING TO THE CONSUMER ABOUT\nHIS OR HER CONSUMER CREDIT TRANSACTION. IT\n-10-\nAPPEARS THAT ON A TYPICAL INSTALLMENT\nCONTRACT REGULATION Z REQUIRES MORE THAN\n20 SEPARATE COMPUTATIONS OF DOLLAR AND\nPERCENTAGE FIGURES. OPEN-END CREDIT\non wen greater\nAGREEMENTS WILL INVOLVE A SIMILAR NUMBER\nOF COMPUTATIONS.\nIN MANY CASES THE CONSUMER WE ARE\nTRYING TO PROTECT WILL SIMPLY BECOME\nCONFUSED. I FURTHER PREDICT THAT MANY\nSMALL AND MEDIUM SIZE RETAILERS WILL EITHER\nREFUSE TO GRANT CREDIT OR WILL TURN TO BANKS\nFOR ASSISTANCE.\nIN MANY INSTANCES, THE BANK CREDIT\nCARD WILL BE THE MOST CONVENIENT ANSWER FOR\nTHE SMALL RETAILER.\nFEDERAL RESERVE BOARD AND FEDERAL\nTRADE COMMISSION REPRESENTATIVES HAVE BEEN\nURGING LOCAL RETAILERS TO CONSULT ATTORNEYS\nON HOW TO COMPLY WITH THE TRUTH-IN-LENDING\nLAW. THIS IS AN UNREALISTIC APPROACH AND\nLIBRARY\n-11-\nFAR TOO COSTLY FOR MANY SMALL BUSINESSMEN.\nTHUS THE BANKING INDUSTRY HAS AN\nOPPORTUNITY TO MAKE MANY FRIENDS, SIMPLY\nBY EXTENDING A HELPING HAND TO SMALL\nRETAILERS THROUGHOUT THE COUNTRY.\nTHE NATIONAL ADMINISTRATION ALSO HAS\nAN OPPORTUNITY -- AN OPPORTUNITY TO KEEP\nTHE AMERICAN ECONOMY GROWING WITHOUT SHARP\nUPS AND DOWNS, TO DIRECT IT ON A COURSE OF\nSTEADY AND SOUND EXPANSION AS OUR POPULATION\nGROWS.\nTHE PRESIDENT BELIEVES THAT WE CAN\nDO THIS IF WE STEER A COURSE THAT AVOIDS\nDRASTIC SWINGS IN FEDERAL SPENDING AND\nCREDIT POLICY, A COURSE BASED ON THE THEORY\nTHAT THE BEST ECONOMICS IS THE BEST\nPOLITICS.\nAGAINST THAT BACKGROUND OF ADMINIS-\nTRATION POLICY, CONGRESS HAS SOME MAJOR\nDECISIONS TO MAKE IN THE WEEKS AHEAD. THE\n-12-\nMOST CRUCIAL OF THESE DECISIONS INVOLVES\nTHE 10 PER CENT SURTAX.\nIN MY VIEW, WE CAN MAKE THE RIGHT\nDECISION ON THE SURTAX ONLY IF WE LOOK AT\nIT FROM THE STANDPOINT OF WHAT IS BEST FOR\nTHE ECONOMY -- WHICH IS TO SAY, WHAT IS\nBEST FOR THE AMERICAN PEOPLE.\nEVERYONE WITH EVEN A RUDIMENTARY\nKNOWLEDGE OF ECONOMICS RECOGNIZES THAT\nTHE GREATEST PROBLEM CURRENTLY FACING OUR\nDOMESTIC ECONOMY IS CONTINUING STRONG\nINFLATION AND A DEEPENING OF THE INFLATIONARY\nPSYCHOLOGY THAT HAS TAKEN HOLD IN THIS\nCOUNTRY IN RECENT MONTHS.\nCONSIDER THIS: AS 1965 ENDED, THE\nCONSUMER PRICE INDEX STOOD AT 109.9 PER CENT\nOF THE 1957-59 PRICE LEVEL. AS OF MARCH 31,\n1969, PRICES HAD RISEN TO 125.4) PER CENT.\nTHAT'S A 14.1 PER CENT COST-OF-LIVING JUMP\nIN JUST 39 MONTHS\nLIBRARY\n-13-\nDEMAND-PULL WAS THE INFLATION CULPRIT\nIN 1965. SINCE MID-1967 PRICES HAVE BEEN\nPUSHED UP BY A COMBINATION OF DEMAND-PULL\nAND COST-PUSH FORCES.\nWE CAN ATTAIN PRICE STABILITY\nTHROUGH THE OPERATION AND INTER-ACTION OF\nTHREE FORCES -- FISCAL POLICY, MONETARY\nPOLICY AND THE LONG-RUN REACTION OF THE\nMARKET PLACE TO PRICE CHANGES.\nI WOULD LIKE TO FOCUS THIS MORNING\nON FISCAL POLICY, BECAUSE A DECISION ON\nEXTENDING THE SURTAX IS QUITE IMMINENT IN\nTHE CONGRESS.\nTHINK WE ALL AGREE THAT WHEN\nINFLATION IS RAMPANT, GOVERNMENT FISCAL\nPOLICY SHOULD BE AIMED AT TAKING THE STEAM\nOUT OF THE BOOM. SPENDING SHOULD BE RESTRICTED\nAND OR TAX RATES SHOULD BE INCREASED.\nFORD\nconspending ME\nINFLATION IS RAMPANT, AND YET THE\nLIBRARY\nON\nGET FROM MY LIEUTENANTS IN THE HOUSE\n-14-\nIS THAT EXTENSION OF THE SURTAX MAY BE IN\nTROUBLE. Int. Rev. story 1 2 can understand\nON APRIL 21 PRESIDENT NIXON PROPOSED\nTHAT THE SURTAX BE EXTENDED AT THE 10 PER\nCENT LEVEL UNTIL NEXT JAN. 1 AND THEN\nREDUCED TO 5 PER CENT AND THAT THE 7 PER CENT\nINVESTMENT TAX CREDIT BE REPEALED AS OF\nTHAT DATE. THE REVENUE LOSS RESULTING FROM\nCUTTING THE SURTAX IN HALF WOULD BE OFFSET\nBY REPEAL OF THE INVESTMENT TAX CREDIT.\nWHAT COULD BE MORE REASONABLE? AND\nYET THE SURTAX EXTENSION IS IN TROUBLE.\nTHE TROUBLE IS IS/THAT THAT CONGRESS HAS NOT\nYET LOOKED AT THE SURTAX EXTENSION IN THE\nPROPER LIGHT. THE QUESTION REALLY IS NOT\nWHETHER THE SURTAX SHOULD BE EXTENDED BUT\nwith battle against Whatson\nWHETHER THE TIME IS RIGHT FOR A TAX CUT,\nBECAUSE THAT'S WHAT FAILURE TO EXTEND THE\nSURTAX WOULD MEAN -- TAX REDUCTION at The federal Level.\nNOW, IF WE ARE GOING TO CUT TAXES\nLIBRARY\n-15-\nmust\nWE HAVE TO TELL OURSELVES THAT THE ECONOMY\nNEEDS A PEP PILL. CAN ANYONE HONESTLY SAY\nTHAT'S THE CASE?\nTHE PRESIDENT'S COUNCIL OF ECONOMIC\nADVISERS HAS JUST ISSUED ITS ECONOMIC\nINDICATORS REPORT FOR THE MONTH WHICH ENDED\nAPRIL 31. WHAT DO THE KEY INDICATORS SHOW?\nTOTAL CIVILIAN EMPLOYMENT IN APRIL\nWAS 77,605,000, NOT ONLY AN ALL-TIME HIGH\nBUT 2,452,000 GREATER THAN FOR APRIL, 1968.\nUNEMPLOYMENT AS A PERCENTAGE OF THE\nTOTAL CIVILIAN LABOR FORCE WAS 3.5 PER CENT --\nTHE SAME FOR APRIL 1968.\nAVERAGE HOURLY EARNINGS FOR\nNON-AGRICULTURAL WORKERS -- ADJUSTED TO\nCURRENT PRICES -- WERE $2.99 LAST MONTH --\nA 19-CENT JUMP OVER APRIL, 1968.\nTOTAL PERSONAL INCOME WAS AT A\n$730.5 BILLION ANNUAL RATE, AN INCREASE OF\n$2.8 BILLION OVER THE PRECEDING MONTH.\n-16-\nTOTAL INDUSTRIAL PRODUCTION REACHED\n171.5 PER CENT OF THE 1957-59 AVERAGE AS\nCOMPARED WITH 162.5 IN APRIL, 1968.\nNEW CONSTRUCTION REACHED AN ANNUAL\nRATE OF $91.1 BILLION COMPARED WITH\n$85.3 BILLION IN APRIL, 1968.\nWHAT OTHER CONCLUSION CAN WE REACH\nTHAN THAT THE ECONOMY IS IN MANY RESPECTS\nEVEN MORE BUOYANT NOW THAN IT WAS IN\nAPRIL 1968.\nI\nMUST THEREFORE WARN ALL WHO WILL\nand\nHEED MY WORDS THAT A TAX CUT WOULD NOT BE\nlyang\nFISCALLY SOUND AT THIS TIME.\nTAX REDUCTION NOW WOULD BE THE WRONG\nMEDICINE FOR THE ECONOMY AT THE WRONG TIME.\nIT WOULD ESCALATE INFLATIONARY PRESSURES.\nBUT I SUGGEST THAT A DROP IN THE\nSURTAX TO 5 PER CENT NEXT JAN. 1 LIKELY WOULD\nBE A GOOD PIECE OF TIMING. I SAY THIS FROM\nTHE STANDPOINT THAT REPEAL OF THE INVESTMENT\n-17-\nTAX CREDIT WILL HAVE NO IMMEDIATE IMPACT\nBUT WILL EXERT DRAG ON THE ECONOMY AT A TIME\nWHEN IT MAY NEED A STIMULANT RATHER THAN A\nDEPRESSANT.\nI FEEL SURE THAT THE BANKING\nINDUSTRY SEES THE DANGER IN TAX REDUCTION\nWHEN INFLATION IS STILL UNCONTROLLED.\nYOU COULD REMAIN ALOOF AS SO MANY\nPEOPLE DO WHEN THEY TURN TO THE OTHER FELLOW\nAND SAY, \"THAT'S YOUR PROBLEM.\"\nMY FEELING IS THAT INFLATION IS\nYOUR PROBLEM, Too, IN FACT, IT'S\nEVERYONE'S PROBLEM.\nCURRENTLY THERE IS TOO MUCH PERSONAL\nINVOLVEMENT IN THIS COUNTRY BY INDIVIDUALS\nSEEKING CONFRONTATION WITH THE FORCES OF\nLAW AND ORDER AND WHAT THEY CALL THE\nESTABLISHMENT, THE RADICALS WHO ARE TRYING\nTO TEAR DOWN OUR INSTITUTIONS.\nTHE KIND OF PERSONAL INVOLVEMENT WE\n-18-\nNEED IS THAT OF AMERICANS WHO BELIEVE THAT\nOUR DEMOCRATIC FORM OF GOVERNMENT IS THE\nwhat we meed\nBEST EVER DEVISED, THAT WHAT'S REQUIRED TO\nMAKE IT SUCCEED IS CONSTRUCTIVE CONFRONTATION\nWITH THE PROBLEMS OF OUR MODERN SOCIETY.\nASK YOU THIS MORNING TO BECOME\nINVOLVED -- TO MAKE YOUR WEIGHT FELT IN\nSOLVING THE PROBLEM OF INFLATION. I ASK\nYOU TO BECOME CONCERNED AND COMMITTED\nCITIZENS -- CONCERNED ABOUT LOCAL, STATE\nAND NATIONAL PROBLEMS AND COMMITTED TO\nPERSONAL ACTION IN HELPING TO SOLVE THEM.\nI DO BELIEVE THE FIRES OF FAITH HAVE\nBEEN RELIT IN THIS COUNTRY. WHAT I SAID\nEARLIER THIS MORNING WAS NOT JUST RHETORIC.\nIT WAS AN EXPRESSION OF MY OWN PERSONAL\nFAITH THAT DEMOCRACY CAN BE MADE TO WORK IN\nAMERICA. AND THAT -- MAKING THE DEMOCRATIC\nPROCESS WORK -- IS THE BEST POSSIBLE\nFORD\nANSWER TO THE RADICALS WHO ARE TRYING TO\nLIBRARY\n-19-\nTEAR THIS COUNTRY DOWN.\nLET US THEN JOIN TOGETHER\nLET US\nLINK ARMS TO MOVE THIS COUNTRY FORWARD.\nWE HAVE NEW LEADERSHIP -- SOUND,\nDETERMINED, SKILLED IN THE PROCESSES OF\nGOVERNMENT.\nIN SUPPORT OF THAT LEADERSHIP LET US\nMAKE OUR CONTRIBUTION -- THE INDISPENSABLE\nELEMENT -- FAITH IN OUR NATION, FAITH IN\nEACH OTHER, FAITH THAT WE CAN MOVE TOGETHER\nTOWARD A HIGHER ORDER FOR ALL MEN. FOR FAITH\nIS THE TALISMAN OF GREATNESS FOR ALL AMERICA.\n-- END --\nGERALD, LIBRARY FORD\nDistribution:\nan mail 2:00p.m. 5/22/69\nGalleries 10:00 a.m. 5/23/69\nM Office copy\nAN ADDRESS BY REP. GERALD R. FORD, R-MICH.\nAT THE ANNUAL CONVENTION OF THE PENNSYLVANIA BANKERS ASSOCIATION\nAT ATLANTIC CITY, NEW JERSEY\n10:30 A.M., MONDAY, MAY 26, 1969\nFOR RELEASE ON DELIVERY\nGood morning, gentlemen: It's a great pleasure for me to join you here in\nthis exciting resort city.\nI have always felt at home talking with bankers, because I have always\nfelt they had my interest at heart.\nMark Twain, of course, had a little different outlook on bankers. He said\n\"a banker is a fellow who lends you his umbrella when the sun is shining and\nwants it back the minute it begins to rain.\"\nI have a hunch maybe David Kennedy and Bob Mayo wish they had gotten their\numbrellas back before they left Chicago for Washington. But then Secretary\nKennedy didn't realize that House Banking and Currency Chairman Wright Patman\ncalls himself \"the little old rainmaker.\"\nA homespun philosopher who also happened to be a song writer once said,\n\"Into each life some rain must fall.\"\nRight now I think we're all enjoying a considerable quantity of sunshine.\nI recall a time last year when the militants in this country were\nshouting that they were going to \"turn this country around\" or burn it down.\nWe are turning this country around\nturning it toward permanent peace and\ngenuine prosperity.\nWe are turning this country around away from the arsonists and\nanarchists.\nThere is a new fire in this country the fire of faith. The fires of\nfaith have been relit in this country faith in our free institutions, faith in\nthe free enterprise system, faith that the principle of freedom ultimately will\nprevail in the scales of world justice, faith that our national government working\nwith state and local leaders and our private institutions can solve the crushing\nproblems of our times.\nThere has been a vast change in the mood of the American people, a shift in\nthe tide. There is a tide for change, but it is a tide for change based on care-\nfully reasoned decisions and on the great force for good that flows from people\nworking with people, change rising from evolution and not revolution.\n(more)\nLIBRARY\n-2-\nThe forces of revolution are at work in this country but they will not\nprevail. As the great philosopher Plutarch put it: \"Perseverance is more\nprevailing than violence; and many things which cannot be overcome when they are\ntaken together yield themselves when taken little by little.\"\nWe have been living under a new national administration for four months.\nThe administration changed, but the problems remained. They did not disappear.\nOne dividend from a change in national administrations is a change in\noutlook -- reexamination of the problems, a searching-out of deficiencies, a\ndevising of new approaches.\nThe new administration has first of all established the process of\neffective decision-making and has given our national problems fresh analysis.\nAs a result we have made substantial progress in just four months -- as a\nNation and as a people. This is true by any standard.\nWe now see a realistic movement toward peace in Vietnam, some progress\ntoward creating a framework for Israeli-Arab peace negotiations in the Middle East,\na pulling together of the Western alliance, and steps toward arms control talks\nwith the Soviet Union.\nWe have made progress toward combating crime; progress toward rebuilding\nour cities; progress toward bringing inflation under control; progress toward\nreforming our tax structure.\nThere will be tax reform this year -- and it probably will go beyond the\nNixon Administration's recommendations. The national mood underscores the need\nfor it, and Congress will respond.\nAdministration officials are working closely with the House Ways and Means\nCommittee. The Committee is on schedule. The plan is to move a tax reform bill\nthrough the House before the Congress takes a summer recess in mid-August.\nAt this point it is impossible to say what the Ways and Means Committee\nwill do in dealing with tax-exempt bonds. This is the most complex problem facing\nthe committee.\nThere is some talk of taxing state and municipal bonds and then reimbursing\nstate and local units of government for the additional interest costs resulting\nfrom elimination of tax exemption. But who would decide exactly how much interest\nadd-on occurred in each instance? How would it be computed?\nAnd of course there also is the inequity to individuals that arises from\ntaxing new issues of state and municipal bonds while outstanding bonds continue\nto be tax-exempt.\n(more)\n-3-\nNow meeting in executive session, the Ways and Means Committee has before it\nPresident Nixon's tax reform proposals plus the continuing advice of Administration\nofficials and the benefit of testimony taken in the committee's public hearings.\nThe legislation shaped in these executive sessions could be quite far reaching.\nBut one would have to possess the wisdom of Solomon to predict the net result.\nAt this point I would like to say a few words about prospects for bank\nholding company legislation in the 91st Congress.\nThe shape of the law to come is unclear but I am convinced the 91st Congress\nwill enact some form of bank holding company legislation. At this point, the\ntiming also is uncertain.\nAs you know, the Nixon Administration has sponsored a bill which is different\nin many respects from either the Patman or Proxmire bills.\nBecause of the strong anti-bank bias of Chairman Patman, I do not think\nthe bill reported out by the House Banking and Currency Committee will determine\nthe ultimate form of the legislation as enacted. I would add that I do not think\nCongress as a whole will treat this subject in partisan fashion.\nI would like to sound this note of caution. I am concerned that many\nbankers regard this subject as purely a bank holding company issue. Bankers\neverywhere should realize that the extent to which Congress defines bank-related\nactivities for holding companies is bound to affect the future definition of\nrelated activities for individual banks as well.\nYou also are interested in the Truth-In-Lending Act, which will become\neffective in many respects on June 30 through Regulation Z. I am aware that the\nbanking industry opposed this legislation to some degree. But many of the banking\nindustry's leaders now see the situation as a great opportunity for banking, and\nI agree.\nMany competitive benefits will result for banks from the fact that\ndisclosure of annual finance charges will now be required with regard to consumer\ncredit transactions and credit advertising.\nThere is one by-product of the Truth-In-Lending Act which concerns me.\nAt the same time I see it as an opportunity for our nation's banks.\nIn my view, sponsors of the legislation were overzealous in their desire\nto disclose everything to the consumer about his or her consumer credit trans-\naction. It appears that on a typical installment contract Regulation Z requires\nmore than 20 separate computations of dollar and percentage figures. Open-end\ncredit agreements will involve a similar number of computations.\n(more)\n-4-\nIn many cases the consumer we are trying to protect will simply become\nconfused. I further predict that many small and medium size retailers will either\nrefuse to grant credit or will turn to banks for assistance.\nIn many instances, the bank credit card will be the most convenient answer\nfor the small retailer.\nFederal Reserve Board and Federal Trade Commission representatives have\nbeen urging local retailers to consult attorneys on how to comply with the\nTruth-In-Lending Law. This is an unrealistic approach and far too costly for\nmany small businessmen.\nThus the banking industry has an opportunity to make many friends, simply\nby extending a helping hand to small retailers throughout the country.\nThe national Administration also has an opportunity -- an opportunity to\nkeep the American economy growing without sharp ups and downs, to direct it on a\ncourse of steady and sound expansion as our population grows.\nThe President believes that we can do this if we steer a course that avoids\ndrastic swings in federal spending and credit policy, a course based on the theory\nthat the best economics is the best politics.\nAgainst that background of Administration policy, Congress has some major\ndecisions to make in the weeks ahead. The most crucial of these decisions\ninvolves the 10 per cent surtax.\nIn my view, we can make the right decision on the surtax only if we look\nat it from the standpoint of what is best for the economy -- which is to say,\nwhat is best for the American people.\nEveryone with even a rudimentary knowledge of economics recognizes that\nthe greatest problem currently facing our domestic economy is continuing strong\ninflation and a deepening of the inflationary psychology that has taken hold in\nthis country in recent months.\nConsider this: As 1965 ended, the Consumer Price Index stood at\n109.9 per cent of the 1957-59 price level. As of March 31, 1969, prices had\nrisen to 125.4 per cent. That's a 14.1 per cent cost-of-living jump in just\n39 months.\nDemand-pull was the inflation culprit in 1965. Since mid-1967 prices\nhave been pushed up by a combination of demand-pull and cost-push forces.\nWe can attain price stability through the operation and inter-action of\nthree forces -- fiscal policy, monetary policy and the long-run reaction of the\nmarket place to price changes.\n(more)\n-5-\nI would like to focus this morning on fiscal policy, because a decision on\nextending the surtax is quite imminent in the Congress.\nI think we all agree that when inflation is rampant, government fiscal\npolicy should be aimed at taking the steam out of the boom. Spending should be\nrestricted and/or tax rates should be increased.\nInflation is rampant, and yet the word I get from my lieutenants in the\nHouse is that extension of the surtax may be in trouble.\nOn April 21 President Nixon proposed that the surtax be extended at the\n10 per cent level until next Jan. 1 and then reduced to 5 per cent and that the\n7 per cent investment tax credit be repealed as of that date. The revenue loss\nresulting from cutting the surtax in half would be offset by repeal of the\ninvestment tax credit.\nWhat could be more reasonable? And yet the surtax extension is in trouble.\nThe trouble is that Congress has not yet looked at the surtax extension\nin the proper light. The question really is not whether the surtax should be\nextended but whether the time is right for a tax cut, because that's what failure\nto extend the surtax would mean -- tax reduction.\nNow, if we are going to cut taxes we have to tell ourselves that the\neconomy needs a pep pill. Can anyone honestly say that's the case?\nThe President's Council of Economic Advisers has just issued its economic\nindicators report for the month which ended April 31. What do the key indicators\nshow?\nTotal civilian employment in April was 77,605,000, not only an all-time\nhigh but 2,452,000 greater than for April, 1968.\nUnemployment as a percentage of the total civilian labor force was\n3.5 per cent -- the same as for April 1968.\nAverage hourly earnings for non-agricultural workers -- adjusted to current\nprices -- were $2.99 last month -- a 19-cent jump over April, 1968.\nTotal personal income was at a $730.5 billion annual rate, an increase of\n$2.8 billion over the preceding month.\nTotal industrial production reached 171.5 per cent of the 1957-59 average\nas compared with 162.5 in April, 1968.\nNew construction reached an annual rate of $91.1 billion compared with\n$85.3 billion in April, 1968.\nWhat other conclusion can we reach than that the economy is in many respects\neven more buoyant now than it was in April, 1968.\n(more)\n-6-\nI must therefore warn all who will heed my words that a tax cut would\nnot be fiscally sound at this time.\nTax reduction now would be the wrong medicine for the economy at the wrong\ntime. It would escalate inflationary pressures.\nBut I suggest that a drop in the surtax to 5 per cent next Jan. 1 likely\nwould be a good piece of timing. I say this from the standpoint that repeal of\nthe investment tax credit will have no immediate impact but will exert drag on the\neconomy at a time when it may need a stimulant rather than a depressant.\nI feel sure that the banking industry sees the danger in tax reduction when\ninflation is still uncontrolled.\nYou could remain aloof as so many people do when they turn to the other\nfellow and say, \"That's your problem.\"\nMy feeling is that inflation is your problem, too. In fact, it's everyone's\nproblem.\nCurrently there is too much personal involvement in this country by\nindividuals seeking confrontation with the forces of law and order and what they\ncall the Establishment, the radicals who are trying to tear down our institutions.\nThe kind of personal involvement we need is that of Americans who believe\nthat our democratic form of government is the best ever devised, that what's\nrequired to make it succeed is constructive confrontation with the problems of\nour modern society.\nI ask you this morning to become involved -- to make your weight felt in\nsolving the problem of inflation. I ask you to become concerned and committed\ncitizens -- concerned about local, state and national problems and committed to\npersonal action in helping to solve them.\nI do believe the fires of faith have been relit in this country. What I\nsaid earlier this morning was not just rhetoric. It was an expression of my own\npersonal faith that democracy can be made to work in America. And that -- making\nthe democratic process work -- is the best possible answer to the radicals who\nare trying to tear this country down.\nLet us then join together\nlet us link arms to move this country forward.\nWe have new leadership sound, determined, skilled in the processes of\ngovernment.\nIn support of that leadership let us make our contribution -- the indis-\npensable element -- faith in our Nation, faith in each other, faith that we can\nmove together toward a higher order for all men. For faith is the talisman of\ngreatness for all America.\n###\nOffice Copy\nAN ADDRESS BY REP. GERALD R. FORD, R-MICH.\nAT THE ANNUAL CONVENTION OF THE PENNSYLVANIA BANKERS ASSOCIATION\nAT ATLANTIC CITY, NEW JERSEY\n10:30 A.M., MONDAY, MAY 26, 1969\nFOR RELEASE ON DELIVERY\nGood morning, gentlemen: It's a great pleasure for me to join you here in\nthis exciting resort city.\nI have always felt at home talking with bankers, because I have always\nfelt they had my interest at heart.\nMark Twain, of course, had a little different outlook on bankers. He said\n\"a banker is a fellow who lends you his umbrella when the sun is shining and\nwants it back the minute it begins to rain.\"\nI have a hunch maybe David Kennedy and Bob Mayo wish they had gotten their\numbrellas back before they left Chicago for Washington. But then Secretary\nKennedy didn't realize that House Banking and Currency Chairman Wright Patman\ncalls himself \"the little old rainmaker.\"\nA homespun philosopher who also happened to be a song writer once said,\n\"Into each life some rain must fall.\"\nRight now I think we're all enjoying a considerable quantity of sunshine.\nI recall a time last year when the militants in this country were\nshouting that they were going to \"turn this country around\" or burn it down.\nWe are turning this country around\nturning it toward permanent peace and\ngenuine prosperity.\nWe are turning this country around\naway from the arsonists and\nanarchists.\nThere is a new fire in this country the fire of faith. The fires or\nfaith have been relit in this country faith in our free institutions, faith in\nthe free enterprise system, faith that the principle of freedom ultimately will\nprevail in the scales of world justice, faith that our national government working\nwith state and local leaders and our private institutions can solve the crushing\nproblems of our times.\nThere has been a vast change in the mood of the American people, a shift in\nthe tide. There is a tide for change, but it is a tide for change based on care-\nfully reasoned decisions and on the great force for good that flows from people\nworking with people, change rising from evolution and not revolution.\n(more)\n-2-\nThe forces of revolution are at work in this country but they will not\nprevail. As the great philosopher Plutarch put it: \"Perseverance is more\nprevailing than violence; and many things which cannot be overcome when they are\ntaken together yield themselves when taken little by little.\"\nWe have been living under a new national administration for four months.\nThe administration changed, but the problems remained. They did not disappear.\nOne dividend from a change in national administrations is a change in\noutlook -- reexamination of the problems, a searching-out of deficiencies, a\ndevising of new approaches.\nThe new administration has first of all established the process of\neffective decision-making and has given our national problems fresh analysis.\nAs a result we have made substantial progress in just four months -- as a\nNation and as a people. This is true by any standard.\nWe now see a realistic movement toward peace in Vietnam, some progress\ntoward creating a framework for Israeli-Arab peace negotiations in the Middle East,\na pulling together of the Western alliance, and steps toward arms control talks\nwith the Soviet Union.\nWe have made progress toward combating crime; progress toward rebuilding\nour cities; progress toward bringing inflation under control; progress toward\nreforming our tax structure.\nThere will be tax reform this year -- and it probably will go beyond the\nNixon Administration's recommendations. The national mood underscores the need\nfor it, and Congress will respond.\nAdministration officials are working closely with the House Ways and Means\nCommittee. The Committee is on schedule. The plan is to move a tax reform bill\nthrough the House before the Congress takes a summer recess in mid-August.\nAt this point it is impossible to say what the Ways and Means Committee\nwill do in dealing with tax-exempt bonds. This is the most complex problem facing\nthe committee.\nThere is some talk of taxing state and municipal bonds and then reimbursing\nstate and local units of government for the additional interest costs resulting\nfrom elimination of tax exemption. But who would decide exactly how much interest\nadd-on occurred in each instance? How would it be computed?\nAnd of course there also is the inequity to individuals that arises from\ntaxing new issues of state and municipal bonds while outstanding bonds continue\nto be tax-exempt.\n(more)\n-3-\nNow meeting in executive session, the Ways and Means Committee has before it\nPresident Nixon's tax reform proposals plus the continuing advice of Administration\nofficials and the benefit of testimony taken in the committee's public hearings.\nThe legislation shaped in these executive sessions could be quite far reaching.\nBut one would have to possess the wisdom of Solomon to predict the net result.\nAt this point I would like to say a few words about prospects for bank\nholding company legislation in the 91st Congress.\nThe shape of the law to come is unclear but I am convinced the 91st Congress\nwill enact some form of bank holding company legislation. At this point, the\ntiming also is uncertain.\nAs you know, the Nixon Administration has sponsored a bill which is different\nin many respects from either the Patman or Proxmire bills.\nBecause of the strong anti-bank bias of Chairman Patman, I do not think\nthe bill reported out by the House Banking and Currency Committee will determine\nthe ultimate form of the legislation as enacted. I would add that I do not think\nCongress as a whole will treat this subject in partisan fashion.\nI would like to sound this note of caution. I am concerned that many\nbankers regard this subject as purely a bank holding company issue. Bankers\neverywhere should realize that the extent to which Congress defines bank-related\nactivities for holding companies is bound to affect the future definition of\nrelated activities for individual banks as well.\nYou also are interested in the Truth-In-Lending Act, which will become\neffective in many respects on June 30 through Regulation Z. I am aware that the\nbanking industry opposed this legislation to some degree. But many of the banking\nindustry's leaders now see the situation as a great opportunity for banking, and\nI agree.\nMany competitive benefits will result for banks from the fact that\ndisclosure of annual finance charges will now be required with regard to consumer\ncredit transactions and credit advertising.\nThere is one by-product of the Truth-In-Lending Act which concerns me.\nAt the same time I see it as an opportunity for our nation's banks.\nIn my view, sponsors of the legislation were overzealous in their desire\nto disclose everything to the consumer about his or her consumer credit trans-\naction. It appears that on a typical installment contract Regulation Z requires\nmore than 20 separate computations of dollar and percentage figures. Open-end\ncredit agreements will involve a similar number of computations.\n(more)\n-4-\nIn many cases the consumer we are trying to protect will simply become\nconfused. I further predict that many small and medium size retailers will either\nrefuse to grant credit or will turn to banks for assistance.\nIn many instances, the bank credit card will be the most convenient answer\nfor the small retailer.\nFederal Reserve Board and Federal Trade Commission representatives have\nbeen urging local retailers to consult attorneys on how to comply with the\nTruth-In-Lending Law. This is an unrealistic approach and far too costly for\nmany small businessmen.\nThus the banking industry has an opportunity to make many friends, simply\nby extending a helping hand to small retailers throughout the country.\nThe national Administration also has an opportunity -- an opportunity to\nkeep the American economy growing without sharp ups and downs, to direct it on a\ncourse of steady and sound expansion as our population grows.\nThe President believes that we can do this if we steer a course that avoids\ndrastic swings in federal spending and credit policy, a course based on the theory\nthat the best economics is the best politics.\nAgainst that background of Administration policy, Congress has some major\ndecisions to make in the weeks ahead. The most crucial of these decisions\ninvolves the 10 per cent surtax.\nIn my view, we can make the right decision on the surtax only if we look\nat it from the standpoint of what is best for the economy -- which is to say,\nwhat is best for the American people.\nEveryone with even a rudimentary knowledge of economics recognizes that\nthe greatest problem currently facing our domestic economy is continuing strong\ninflation and a deepening of the inflationary psychology that has taken hold in\nthis country in recent months.\nConsider this: As 1965 ended, the Consumer Price Index stood at\n109.9 per cent of the 1957-59 price level. As of March 31, 1969, prices had\nrisen to 125.4 per cent. That's a 14.1 per cent cost-of-living jump in just\n39 months.\nDemand-pull was the inflation culprit in 1965. Since mid-1967 prices\nhave been pushed up by a combination of demand-pull and cost-push forces.\nWe can attain price stability through the operation and inter-action of\nthree forces -- fiscal policy, monetary policy and the long-run reaction of the\nmarket place to price changes.\n(more)\n-5-\nI would like to focus this morning on fiscal policy, because a decision on\nextending the surtax is quite imminent in the Congress.\nI think we all agree that when inflation is rampant, government fiscal\npolicy should be aimed at taking the steam out of the boom. Spending should be\nrestricted and/or tax rates should be increased.\nInflation is rampant, and yet the word I get from my lieutenants in the\nHouse is that extension of the surtax may be in trouble.\nOn April 21 President Nixon proposed that the surtax be extended at the\n10 per cent level until next Jan. 1 and then reduced to 5 per cent and that the\n7 per cent investment tax credit be repealed as of that date. The revenue loss\nresulting from cutting the surtax in half would be offset by repeal of the\ninvestment tax credit.\nWhat could be more reasonable? And yet the surtax extension is in trouble.\nThe trouble is that Congress has not yet looked at the surtax extension\nin the proper light. The question really is not whether the surtax should be\nextended but whether the time is right for a tax cut, because that's what failure\nto extend the surtax would mean -- tax reduction.\nNow, if we are going to cut taxes we have to tell ourselves that the\neconomy needs a pep pill. Can anyone honestly say that's the case?\nThe President's Council of Economic Advisers has just issued its economic\nindicators report for the month which ended April 31. What do the key indicators\nshow?\nTotal civilian employment in April was 77,605,000, not only an all-time\nhigh but 2,452,000 greater than for April, 1968.\nUnemployment as a percentage of the total civilian labor force was\n3.5 per cent -- the same as for April 1968.\nAverage hourly earnings for non-agricultural workers -- adjusted to current\nprices were $2.99 last month -- a 19-cent jump over April, 1968.\nTotal personal income was at a $730.5 billion annual rate, an increase of\n$2.8 billion over the preceding month.\nTotal industrial production reached 171.5 per cent of the 1957-59 average\nas compared with 162.5 in April, 1968.\nNew construction reached an annual rate of $91.1 billion compared with\n$85.3 billion in April, 1968.\nWhat other conclusion can we reach than that the economy is in many respects\neven more buoyant now than it was in April, 1968.\n(more)\n-6-\nI must therefore warn all who will heed my words that a tax cut would\nnot be fiscally sound at this time.\nTax reduction now would be the wrong medicine for the economy at the wrong\ntime. It would escalate inflationary pressures.\nBut I suggest that a drop in the surtax to 5 per cent next Jan. 1 likely\nwould be a good piece of timing. I say this from the standpoint that repeal of\nthe investment tax credit will have no immediate impact but will exert drag on the\neconomy at a time when it may need a stimulant rather than a depressant.\nI feel sure that the banking industry sees the danger in tax reduction when\ninflation is still uncontrolled.\nYou could remain aloof as so many people do when they turn to the other\nfellow and say, \"That's your problem.\"\nMy feeling is that inflation is your problem, too. In fact, it's everyone's\nproblem.\nCurrently there is too much personal involvement in this country by\nindividuals seeking confrontation with the forces of law and order and what they\ncall the Establishment, the radicals who are trying to tear down our institutions.\nThe kind of personal involvement we need is that of Americans who believe\nthat our democratic form of government is the best ever devised, that what's\nrequired to make it succeed is constructive confrontation with the problems of\nour modern society.\nI ask you this morning to become involved -- to make your weight felt in\nsolving the problem of inflation. I ask you to become concerned and committed\ncitizens -- concerned about local, state and national problems and committed to\npersonal action in helping to solve them.\nI do believe the fires of faith have been relit in this country. What I\nsaid earlier this morning was not just rhetoric. It was an expression of my own\npersonal faith that democracy can be made to work in America. And that -- making\nthe democratic process work -- is the best possible answer to the radicals who\nare trying to tear this country down.\nLet us then join together let us link arms to move this country forward.\nWe have new leadership -- sound, determined, skilled in the processes of\ngovernment.\nIn support of that leadership let us make our contribution -- the indis-\npensable element -- faith in our Nation, faith in each other, faith that we can\nmove together toward a higher order for all men. For faith is the talisman of\ngreatness for all America.\n# # #"
}