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Bankers Luncheon, Canton, OH, May 18, 1970
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The original documents are located in Box D29, folder "Bankers Luncheon, Canton, OH,
May 18, 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 D29 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
5TH ANNUAL MASS RETAILING INSTITUTE
CONVENTION, SHERATON-PARK HOTEL,
WASHINGTON, D.C., 12 NOON, TUESDAY,
MAY 12, 1970
BANKERS LUNCHEON
CANTON, OHIO, MAY 18,1970
Involution.
AS YOU MAY KNOW, TIMING IS
ALL-IMPORTANT TO A MEMBER OF CONGRESS JUST
AS IT IS TO THOSE IN THE RETAILING BUSINESS.
IT'S IMPORTANT TO A CONGRESSMAN WHEN HE
FILES HIS NOMINATING PETITIONS, WHEN HE
BEGINS HIS CAMPAIGN, WHEN HE FILES AN
IMPORTANT BILL -- AND WHEN HE GIVES A
MAJOR SPEECH.
(Begin Here
I AM MOST HAPPY TO BE HERE WITH
YOU TODAY BECAUSE THE TIMING OFFERS ME
AN OPPORTUNITY TO COMMENT ON SOME MOST
IMPORTANT MATTERS. AND I DO COME BEFORE
YOU IN MY NORMAL FRAME OF MIND --
GERALD FORD LIBRARY
CAUTIOUSLY OPTIMISTIC.
THE CHIEF REASON I AM CAUTIOUSLY
--2--
OPTIMISTIC TODAY IN SPITE OF SOME RECENT
EXPLOSIVE DEVELOPMENTS IS THAT I SEE
SOME BRIGHT PROSPECTS AHEAD -- FOR RETAIL
BUSINESS AND FOR THE NATION GENERALLY.
DESPITE THE TENSE SITUATION AMONG
THE NATION'S YOUNG PEOPLE, I THINK THE
COUNTRY IS GOING TO COME OUT ALL RIGHT.
I BELIEVE THERE WILL BE A GENERAL COOLING
OF EMOTIONS BECAUSE WE WILL ACHIEVE OUR
OBJECTIVES IN OUR SWEEP OF THE CAMBODIAN
SANCTUARIES AND THEN WITHDRAW.
SUCCESS IN THE CAMBODIAN SWEEP
WILL MEAN THAT OUR VIETNAM TROOP
WITHDRAWALS WILL CONTINUE ON SCHEDULE
AND MAY EVEN BE ACCELERATED.
Insect
AND HERE AT HOME I LOOK FOR
A MODERATE UPSWING IN THE ECONOMY WITHOUT
GREAT RISK OF REVIVING INFLATIONARY PRESSURES.
SPEAKING MORE SPECIFICALLY,
--3--
I EXPECT A DEFINITE UPTREND IN RETAIL
SALES IN THE MONTHS AHEAD WHILE THE
ECONOMY CONTINUES ADJUSTING TOWARD
RELATIVE PRICE STABILITY.
THIS IS NOT WISHFUL THINKING ON
MY PART. IT IS BASED ON A NUMBER OF
FACTORS WHICH ARE CERTAIN TO GIVE
MODERATE STIMULUS TO THE ECONOMY WHILE
PRICES "SETTLE IN."
I AM SPEAKING PRIMARILY OF THE
15 PER CENT RISE IN SOCIAL SECURITY
BENEFITS WHICH HAS ALREADY GONE INTO
EFFECT, THE 6 PER CENT FEDERAL EMPLOYEE
PAY RAISE WHICH BECOMES EFFECTIVE IN
MID-MAY, AND THE STRONG LIKELIHOOD OF AN
ADDITIONAL 5 PER CENT INCREASE IN SOCIAL
SECURITY. AND THE COMPLETE PHASING OUT OF THE
SURTAX AS OF JULYI.
ADD THESE FACTORS TO PRESIDENTIAL
LIFTING OF THE CUTBACK ON STATE AND LOCAL
FORD
GERAL
LIBRARY
--4--
SPENDING ON FEDERALLY-ASSISTED CONSTRUCTION
AND THE ADOPTING OF A LESS RESTRICTIVE
FEDERAL RESERVE POLICY ON MONEY SUPPLY.
THE EFFECT ON THE ECONOMY IS BOUND TO BE
A QUICKENING.
BUT LET ME EMPHASIZE THIS WHILE
THERE HAS BEEN AN EASING OF THE FISCAL
AND MONETARY BRAKES, THERE HAS BEEN NO
ABANDONMENT OF THE FIGHT AGAINST INFLATION.
I FIRMLY BELIEVE OUR POLICY-MAKERS HAVE SET
A COURSE WHICH WILL RESTORE REAL ECONOMIC
GROWTH WITHOUT GENERATING STRONG
INFLATIONARY PRESSURES.
THE ECONOMIC PACE IS NOW
BEGINNING TO QUICKEN AND IT IS
REASONABLE TO EXPECT THAT BUSINESS NEWS
WILL MAKE BETTER READING AS WE MOVE
THROUGH 1970.
BUT WHILE WE HAVE SET THE TONE
FOR SOME EXPANSION OF THE ECONOMY, WE
--5--
MUST PURSUE A NON-INFLATIONARY COURSE LONG
ENOUGH TO RESTORE CONFIDENCE IN THE
DOLLAR'S BUYING POWER.
THERE ARE SOME WHO HAVE
CRITICIZED THE ADMINISTRATION'S ECONOMIC
POLICIES BECAUSE THEY FAVOR A HARD, TOUGH
DOSE OF DEFLATION. I DON'T THINK THIS
KIND OF ACTION WOULD MAKE SENSE. LET US
NOT FORGET FOR ONE MINUTE THAT THE
UNEMPLOYMENT RATE FOR NEGROES IS NEARLY
DOUBLE THAT FOR WHITE MEMBERS OF THE
WORK FORCE.
PRICE AND WAGE CONTROLS DON'T
MAKE SENSE, EITHER. FREEZING PRICES
WOULD LEAVE MANY A BUSINESSMAN WITH HIS
PRICES AT LOW LEVELS RELATIVE TO THE
PRICES OF HIS RAW MATERIALS.
MASSIVE DISTORTION WOULD OCCUR
IF WE ATTEMPTED TO FREEZE PRICES AND
WAGES. AND WE MUST REMEMBER THAT ONCE
--6--
THOSE CEILINGS ARE IMPOSED IT IS NO EASY
TASK TO ELIMINATE THEM.
SOME AMERICANS ARE WONDERING
WHETHER WE ACTUALLY ARE MAKING PROGRESS
IN ESTABLISHING THE BASIS FOR MORE
ORDERLY AND NON-INFLATIONARY GROWTH.
THEY ARE CONCERNED ABOUT THE SUSTAINED
RISE IN THE PRICE LEVEL AND WONDER WHETHER
THE FEDERAL BUDGET IS DRIFTING TOWARD
DEFICIT.
THERE IS NO QUESTION THAT THE
TAX-CUTTING AND OVER-SPENDING THE CONGRESS
HAS ENGAGED IN HAS HAD AN UNFAVORABLE
IMPACT ON CAPITAL MARKETS, INTEREST RATES,
MORTGAGE MARKETS AND THE COST OF LIVING
GENERALLY.
WE ARE ALSO CONCERNED ABOUT
RECENT WAGE SETTLEMENTS. THEY HAVE
CLEARLY BEEN LARGE ENOUGH TO PRODUCE
# 078833 FORD LIBRARY
SUBSTANTIAL INCREASES IN COSTS. IT IS
--7--
ELEMENTARY THAT A RISING COST LEVEL TENDS
TO MEAN A RISING PRICE LEVEL.
THIS MEANS THAT BUSINESSMEN
MUST MAKE TOUGH DECISIONS -- DECISIONS
THAT OFFSET RISING COSTS AND INEFFICIENCIES.
THIS IS THE PROCESS THAT MUST TAKE PLACE
IF WE ARE TO ESTABLISH THE BASIS FOR
GREATER PRICE-COST STABILITY IN THE YEARS
AHEAD
WHILE THESE CONCERNS ARE REAL
THERE IS EVIDENCE THAT MUCH PROGRESS HAS
BEEN MADE.
FUNDAMENTAL POLICIES OF
DISINFLATION WERE PUT INTO EFFECT AND
ADHERED TO. THERE WAS SUSTAINED RESTRAINT
IN 1969 AFTER YEARS OF MONETARY
EXPANSION THAT WAS AT LEAST DOUBLE WHAT WAS
REQUIRED FOR SUITABLE ECONOMIC GROWTH.
CURRENTLY THE FEDERAL BUDGET
CONTINUES TO BE CONSISTENT WITH THE
--8--
GENERAL GAME PLAN.
THERE IS NO REASON TO EXPECT THE
BUDGET TO DEFLECT THE ORDERLY COURSE OF
THE ECONOMY
OUR MONETARY POLICY NOW IS
MODESTLY LESS RESTRICTIVE THIS IS
CONSISTENT WITH THE NEEDS OF THE ECONOMY,
FOR WE KNOW THE EFFECTS OF SUCH A CHANGE
IN POLICY SELDOM SHOW UP FOR 6 TO 12 MONTHS.
THIS IS THE RIGHT TIME FOR THIS POLICY
CHANGE ALTHOUGH IT MAY SEEM PREMATURE TO
SOME
WHAT ARE THE PROSPECTS FOR GOOD
GAINS IN PRODUCTION AND INCOMES AS WE
MOVE ON THROUGH THE REMAINING MONTHS
OF 1970?
THOSE PROSPECTS ARE BRIGHT.
CONSUMERS AFTER-TAX INCOMES WILL BE
RISING RAPIDLY IN THE MONTHS AHEAD. THIS
POINTS TOWARD INCREASES IN CONSUMER
--9--
SPENDING AND RETAIL SALES DURING THE REST
OF THIS YEAR. AND WE DO NOT HAVE A GENERAL
EXCESS OF INVENTORIES TO WORK OFF BEFORE
THE ECONOMY CAN RESUME MORE RAPID
EXPANSION.
SO THE RAW MATERIALS ARE THERE
FOR A MORE VIGOROUS AND ORDERLY EXPANSION
OF THE ECONOMY, WHILE PRICE-LEVEL
DEVELOPMENTS ARE BECOMING ENCOURAGING.
COMMODITY PRICES ARE SHOWING
VISIBLE EFFECTS OF MEASURES TAKEN TO
COOL OFF OVERHEATING IN THE ECONOMY.
THE PRICE INDEX FOR ALL
COMMODITIES HAS BEEN RISING AT THE RATE OF
2.9 PER CENT PER YEAR IN 1970, COMPARED
WITH A 5.7 PER CENT RATE IN THE FIRST HALF
OF 1969 AND A 5.3 PER CENT RATE IN THE
SECOND HALF OF LAST YEAR.
THE PRICE INDEX FOR ALL
GERALD FORD LIBRARY
COMMODITIES BUT FOOD HAS BEEN RISING IN
--10--
1970 AT THE RATE OF 1.7 PER CENT PER YEAR
THIS IS A SHARP DROP FROM THE 4.9 PER CENT
ANNUAL RATE THAT PREVAILED IN THE FIRST
HALF OF 1969
SO THE EVIDENCE IS THAT WE CAN
RESUME A MODERATELY MORE RAPID RATE OF
ECONOMIC EXPANSION WITHOUT PUSHING PRICES
BACK INTO ORBIT.
WE CAN MAKE NO MORE IMPORTANT
CONTRIBUTION TO OUR ECONOMIC AND SOCIAL
WELFARE IN THE DECADE OF THE SEVENTIES
THAN TO FOLLOW THROUGH WITH THIS BEGINNING
WE HAVE MADE AND ESTABLISH A FIRM BASIS
FOR VIGOROUS GROWTH, A DOLLAR IN WHICH WE
CAN HAVE CONFIDENCE, AND ABUNDANT JOB
OPPORTUNITIES FOR ALL.
NOW, SINCE THIS TALK IS IN THE
NATURE OF A REPORT TO YOU FROM CAPITOL HILL,
FORD
I WOULD LIKE TO TURN TO A TOPIC OF SPECIAL
INTEREST TO ALL BUSINESSMEN -- CRIME.
--11-- --
+ KNOW THAT BUSINESSES ARE OFTEN THE
TARGETS OF BURGLARS, ARMED ROBBERS, AND
OTHER CRIMINALS.
LET ME SAY FIRST OF ALL THAT I
BELIEVE THE COURTS HAVE BECOME TOO LENIENT,
ALLOWING MANY CRIMINALS TO RETURN TO THE
STREETS TO RESUME CRIME CAREERS. AS A
CASE IN POINT, AN FBI STUDY SHOWS THAT OF
18,000 PERSONS RELEASED FROM CUSTODY IN
1963, 63 PER CENT WERE REARRESTED WITHIN
FIVE YEARS.
SO WE HAVE MUCH WORK TO DO IN
COMBATTING CRIME, AND CONGRESS HAS ITS
TASK
ALL
CUT OUT FOR IT.
HOW IS CONGRESS DOING WITH THE
13 ANTI-CRIME BILLS SENT TO THE HILL BY
PRESIDENT NIXON?
THE ANSWER IS ... ONLY FAIR. WE
MUST HOPE THAT THE HOUSE AND SENATE
COMMITTEES CAN SPEED UP THEIR DELIBERATIONS
--12--
IN THE NEXT FEW MONTHS SO THAT A REALLY
CREDITABLE ANTI-CRIME RECORD CAN BE
WRITTEN BY THE 91ST CONGRESS.
LET ME RUN DOWN THE LIST OF
WHAT THE CONGRESS HAS DONE TO DATE OR HAS
FAILED TO DO IN THE FIGHT AGAINST CRIME.
THERE IS SOME PROGRESS ON THE
ORGANIZED CRIME CONTROL BILL. THAT'S THE
BILL WHICH WOULD CREATE SPECIAL GRAND
JURIES TO PROBE ORGANIZED CRIME, WITH THE
POWER TO ISSUE REPORTS AS WELL AS RETURN
INDICTMENTS. THIS BILL PERMITS
CONTEMPT-OF-COURT CITATIONS AGAINST
RELUCTANT WITNESSES, SETS STIFFER
PENALTIES FOR HABITUAL, PROFESSIONAL AND
ORGANIZED CRIMINALS, AND ALLOWS PROSECUTORS
TO COMPEL TESTIMONY ON CONDITION THE
INFORMATION WILL NOT BE USED AGAINST THE
WITNESS EXCEPT IN PERJURY OR CONTEMPT
GERALD FORD LIBRARY
ACTIONS. THE ADMINISTRATION'S ILLEGAL
--13--
GAMBLING BILL HAS BEEN INCORPORATED INTO
THE ORGANIZED CRIME CONTROL BILL.
THE SENATE PASSED THE BILL LAST
JANUARY 23, AND THE HOUSE JUDICIARY
COMMITTEE WILL START HEARINGS ON IT MAY 20.
THE SENATE PASSED A COMPREHENSIVE
DRUG CONTROL BILL LAST JANUARY 28 BUT THAT
BILL LAID ON THE SPEAKER'S TABLE FOR MORE
THAN THREE MONTHS BECAUSE THE HOUSE
DEMOCRATIC LEADERSHIP COULDN'T DECIDE
WHICH COMMITTEE OR COMMITTEES TO REFER
IT TO
LAST THURSDAY, WAYS AND MEANS
CHAIRMAN WILBUR MILLS AND SENIOR REPUBLICAN
JOHN BYRNES INTRODUCED A HOUSE DRUG CONTROL
BILL IDENTICAL WITH THE SENATE-APPROVED
BILL BUT NO HEARINGS HAVE BEEN SCHEDULED
ON IT YET.
WHILE THE JURISDICTIONAL DISPUTE
HAS BEEN GOING ON, THE HOUSE INTERSTATE
--14--
AND FOREIGN COMMERCE COMMITTEE HAS WORKED
ON A BILL DEALING WITH SO-CALLED SOFT
DRUGS. THAT BILL WILL GO BEFORE THE FULL
COMMITTEE SOON, AFTER SUBCOMMITTEE
APPROVAL.
THE SENATE PASSED THE PUBLIC
DEFENDER ACT APRIL 30. IT IS PENDING IN
THE HOUSE JUDICIARY COMMITTEE.
A HOUSE SUBCOMMITTEE HELD
HEARINGS MAY 7 ON THE FEDERAL YOUTH
CORRECTIONS ACT. IT'S PENDING IN A SENATE
SUBCOMMITTEE.
THE ADMINISTRATION'S WITNESS
IMMUNITY ACT WAS MADE PART OF THE CRIME
CONTROL ACT IN THE SENATE AND PASSED
JANUARY 30. THE HOUSE JUDICIARY COMMITTEE
REPORTED THE WITNESS IMMUNITY BILL FAVORABLY
ON MAY 5.
THE CRIMINAL APPEALS ACT IS
PENDING IN SUBCOMMITTEES IN BOTH HOUSES.
--15--
THAT'S THE LEGISLATION WHICH WOULD ALLOW
THE JUSTICE DEPARTMENT TO APPEAL DIRECTLY
TO THE U.S. APPEALS COURTS ALL CASES THROWN
OUT OF DISTRICT COURTS ON TECHNICALITIES.
THE SENATE AND HOUSE HAVE EACH
PASSED A BILL WHICH WOULD INCREASE THE
NUMBER OF FEDERAL JUDGESHIPS. THE SENATE
BILL PROVIDED FOR 13 MORE NEW JUDGES THAN
THE HOUSE BILL, AND SO THE DIFFERENCE WILL
HAVE TO BE WORKED OUT. THE END RESULT
SHOULD BE BETWEEN 65 AND 70 NEW PERMANENT
AND TEMPORARY JUDGESHIPS AND SHOULD HELP
ELIMINATE SOME OF THE LARGE BACKLOG OF
PENDING CASES.
A BILL TO INCREASE THE PENALTIES
OF THE SHERMAN ANTITRUST ACT PASSED THE
HOUSE FEBRUARY 16. THE SENATE JUDICIARY
COMMITTEE WILL TAKE IT UP IN EXECUTIVE
SESSION MAY 19 OR 20.
GERALD LIBRARY FORD
ALTHOUGH THE HOUSE HAS PASSED
--16--
THE POST OFFICE COMMITTEE'S ANTI-OBSCENITY
BILL AIMED AT PROTECTING MONORS, TWO
OTHER ADMINISTRATION ANTI-OBSCENITY BILLS
ARE SIMPLY MARKING TIME IN BOTH THE HOUSE
AND THE SENATE.
THE BAIL REFORM ACT ALSO IS
PENDING IN BOTH HOUSES. NEITHER HAS
THERE BEEN ANY ACTION ON THE ADMINISTRATION
BILL AIMED AT THOSE WHO HAVE BEEN
PRACTICING TERRORISM BY PLANTING BOMBS
IN BUILDINGS.
AS FOR THE FIVE ANTI-CRIME BILLS
DEALING WITH THE DISTRICT OF COLUMBIA,
THOSE WERE WRAPPED INTO ONE PACKAGE AND
HAVE BEEN PASSED BY BOTH HOUSES. BUT THE
HOUSE AND SENATE STILL HAVE TO WORK OUT
THE DIFFERENCES IN THE TWO OMNIBUS BILLS.
THERE IS NO MORE DISTURBING
FORD
PROBLEM BEFORE THIS NATION TODAY THAN THE
LEVROIT
EVER-RISING CRIME RATE. SO I URGE THAT
--17--
CONGRESS FACE UP TO ITS RESPONSIBILITY TO
HELP CLEAR THE CRIMINAL FROM OUR STREETS.
I AM CONCERNED BECAUSE THE DRUG
CONTROL BILL PASSED BY THE SENATE HAS
LANGUISHED ON THE SPEAKER'S DESK IN THE
HOUSE.
DRUG ADDICTS ACCOUNT FOR 50 TO 75
PER CENT OF OUR STREET CRIMES. I BELIEVE
THE CONGRESS SHOULD HELP IN THE
ADMINISTRATION FIGHT AGAINST THE NARCOTICS
TRAFFIC BY GIVING US THE NO-KNOCK
PROVISION. THE ADMINISTRATION IS ALREADY
MAKING THE GREATEST POSSIBLE EFFORT TO
HALT THE IMPORTATION OF ILLEGAL DRUGS INTO
THIS COUNTRY.
TO SUM UP CONGRESSIONAL ACTION
ON CRIME TO DATE, THE SENATE HAS ACTED
FAR MORE SPEEDILY THAN THE HOUSE ALTHOUGH
THE SENATE HAS UNFORTUNATELY WEAKENED SOME
OF THE ADMINISTRATION'S ANTI-CRIME
--18--
PROPOSALS. IN THE HOUSE THERE HAS BEEN
FOOT-DRAGGING, AND THE GOOD INTENTIONS OF
SOME HAVE BEEN OVERCOME BY THE INERTIA
OF OTHERS.
WE NEED MORE ANTI-CRIME WEAPONS
BUT THE ADMINISTRATION HAS STRUCK SOME
HARD BLOWS AT CRIME WITH THE WEAPONS AT
HAND.
WHILE IT IS TRUE THAT THE
NATIONWIDE CRIME RATE ROSE 11 PER CENT IN
1969, THE FACT REMAINS THAT THIS REPRESENTED
A SHARP DROP FROM THE RATE OF RISE WE HAD
BEEN EXPERIENCING THROUGHOUT THE SIXTIES.
LAST YEAR'S 11 PER CENT INCREASE, FOR
INSTANCE, WAS A BIG IMPROVEMENT OVER 1968,
WHEN CRIME ROSE BY 17 PER CENT.
SO WE ARE MAKING PROGRESS WE
ARE MAKING HEADWAY IN FIGHTING CRIME AND, FORD
AS I MENTIONED AT THE OUTSET, WE ARE
SERALD LIBRARY
MAKING PROGRESS IN FIGHTING INFLATION AND
--19--
IN ESTABLISHING THE BASIS FOR ORDERLY
ECONOMIC GROWTH.
I WOULD ALSO LIKE TO TOUCH
BRIEFLY ON ANOTHER AREA OF INTEREST TO
YOU -- CONSUMER LEGISLATION. THE HOUSE
COMMITTEE ON GOVERNMENT OPERATIONS HAS
THREE BILLS BEFORE IT -- THE ADMINISTRATION
AND DWYER BILLS PROVIDING FOR ESTABLISHMENT
OF CONSUMER AFFAIRS OFFICES, AND THE
ROSENTHAL BILL PROVIDING FOR AN
INDEPENDENT CONSUMER AGENCY.
HEARINGS HAVE BEEN COMPLETED IN
SUBCOMMITTEE ON THESE THREE BILLS.
EFFORTS NOW ARE UNDER WAY TO WORK OUT A
COMPROMISE.
NOBODY WILL BE SATISFIED ON
ALL COUNTS. THE MAIN DESIRE IS TO DEVELOP
A REASONABLE AND EFFECTIVE MEANS OF
CONSUMER PROTECTION WITHOUT UNDERMINING
PRIVATE ENTERPRISE. EFFORTS ARE BEING
MADE TO REPORT OUT A BILL FROM COMMITTEE
--20--
BY EARLY SUMMER SO THE HOUSE WILL HAVE A
CHANCE TO VOTE ON IT THIS YEAR.
I HAVE SAID I AM CAUTIOUSLY
OPTIMISTIC ABOUT THE FUTURE OF AMERICA.
I SEE EVERYWHERE ABOUT ME REASON TO HAVE
FAITH IN OUR COUNTRY, REASON TO BELIEVE
IN OUR GREAT FREE SOCIETY.
I DO NOT DESPAIR OVER TEMPORARY
SETBACKS. I BELIEVE WE CAN LICK
INFLATION AND STEER OUR ECONOMY TO NEW
HEIGHTS OF SOUND GROWTH. I BELIEVE WE
CAN SHARPLY REDUCE CRIME AND MAKE OUR
STREETS SAFE AGAIN.
BUT IF WE ARE TO ACCOMPLISH
THESE OBJECTIVES WE MUST HAVE FAITH. WE
MUST BELIEVE IN WHAT WE ARE DOING. WE MUST
TELL OURSELVES THAT WE CAN ACHIEVE THESE
GOALS -- AND WE MUST BELIEVE IT.
--21 --
I SAY
...
WE CAN. I SAY
...
LET'S GET ON WITH THE JOB.
-- END --
HEALTH FORD LIBRARY
20 copies to mr. Ford Only
0 Office Copy
AN ADDRESS BY REP. GERALD R. FORD, R-MICH.
REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES
BEFORE THE BANKERS LUNCHEON
AT CANTON, OHIO
12 NOON, MONDAY, MAY 18, 1970
FOR RELEASE IN MONDAY PM's
I am most happy to be here with you today because the timing offers me an
opportunity to comment on some most important matters. And I do come before you
in my normal frame of mind -- cautiously optimistic.
The chief reason I am cautiously optimistic today in spite of some recent
explosive developments is that I see some bright prospects ahead -- for
business and for the Nation generally.
Despite the tense situation among the Nation's young people, I think the
country is going to come out all right. I believe there will be a general cooling
of emotions because we will achieve our objectives in our sweep of the Cambodian
sanctuaries and then withdraw.
Success in the Cambodian sweep will mean that our Vietnam troop withdrawals
will continue on schedule and may even be accelerated.
And here at home I look for a moderate upswing in the economy without great
risk of reviving inflationary pressures.
Speaking more specifically, I expect a definite uptrend in sales in
the months ahead while the economy continues adjusting toward relative price
stability.
This is not wishful thinking on my part. It is based on a number of factors
which are certain to give moderate stimulus to the economy while prices "settle in."
I am speaking primarily of the 15 per cent rise in Social Security benefits
which has already gone into effect, the 6 per cent Federal employe pay raise
which becomes effective in mid-May, the strong likelihood of an additional
5 per cent increase in Social Security, and the complete phasing out of the
surtax as of July 1.
Add these factors to Presidential lifting of the cutback on State and local
spending on Federally-assisted construction and the adopting of a less restrictive
(more)
-2-
Federal Reserve policy on money supply. The effect on the economy is bound to be
a quickening.
But let me emphasize this. While there has been an easing of the fiscal
and monetary brakes, there has been no abandonment of the fight against inflation.
I firmly believe our policy-makers have set a course which will restore real
economic growth without generating strong inflationary pressures.
The economic pace is now beginning to quicken, and it is reasonable to
expect that business news will make better reading as we move through 1970.
But while we have set the tone for some expansion of the economy, we must
pursue a non-inflationary course long enough to restore confidence in the dollar's
buying power.
There are some who have criticized the Administration's economic policies
because they favor a hard, tough dose of deflation. I don't think this kind of
action would make sense. Let us not forget for one minute that the unemployment
rate for Negroes is nearly double that for white members of the work force.
Price and wage controls don't make much sense, either. Freezing prices
would leave many a businessman with his prices at low levels relative to the
prices of his raw materials.
Massive distortion would occur if we attempted to freeze prices and wages.
And we must remember that once those ceilings are imposed it is no easy task to
eliminate them.
Some Americans are wondering whether we actually are making progress in
establishing the basis for more orderly and non-inflationary growth. They are
concerned about the sustained rise in the price level and wonder whether the
Federal budget is drifing toward deficit.
There is no question that the tax-cutting and over-spending the Congress
has engaged in has had an unfavorable impact on capital markets, interest rates,
mortgage markets and the cost of living generally.
We are also concerned about recent wage settlements. They have clearly
been large enough to produce substantial increases in costs. It is elementary that
a rising cost level tends to mean a rising price level.
This means that businessmen must make tough decisions -- decisions that
offset rising costs and inefficiencies. This is the process that must take place
if we are to establish the basis for greater price-cost stability in the years
ahead.
(more)
-3-
While these concerns are real, there is evidence that much progress has
been made.
Fundamental policies of disinflation were put into effect and adhered to.
There was sustained restraint in 1969 after years of monetary expansion that was
at least double what was required for suitable economic growth.
Currently the Federal budget continues to be consistent with the general
game plan.
There is no reason to expect the budget to deflect the orderly course of
the economy.
Our monetary policy now is modestly less restrictive. This is consistent
with the needs of the economy, for we know the effects of such a change in policy
seldom show up for 6 to 12 months. This is the right time for this policy change
although it may seen premature to some.
What are the prospects for good gains in production and incomes as we move
on through the remaining months of 1970?
Those prospects are bright. Consumers' after-tax incomes will be rising
rapidly in the months ahead. This points toward increases in consumer spending
and retail sales during the rest of this year. And we do not have a general excess
of inventories to work off before the economy can resume more rapid expansion.
So the raw materials are there for a more vigorous and orderly expansion
of the economy, while price-level developments are becoming encouraging.
Commodity prices are showing visible effects of measures taken to cool off
overheating in the economy.
The price index for all commodities has been rising at the rate of
2.9 per cent per year in 1970, compared with a 5.7 per cent rate in the first half
of 1969 and a 5.3 per cent rate in the second half of last year.
The price index for all commodities but food has been rising in 1970 at the
rate of 1.7 per cent per year. This is a sharp drop from the 4.9 per cent annual
rate that prevailed in the first half of 1969.
So the evidence is that we can resume a moderately more rapid rate of
economic expansion without pushing prices back into orbit.
We can make no more important contribution to our economic and social
welfare in the decade of the Seventies than to follow through with this beginning
we have made and establish a firm basis for vigorous growth, a dollar in which we
can have confidence, and abundant job opportunities for all.
(more)
-4-
Now, since this talk is in the nature of a report to you from Capitol Hill,
I would like to turn to a topic of special interest to all businessmen -- crime.
Let me say first of all that I believe the courts have become too lenient,
allowing many criminals to return to the streets to resume crime careers. As a
case in point, an FBI study shows that of 18,000 persons released from custody in
1963, 63 per cent were rearrested within five years.
So we have much work to do in combatting crime, and Congress has its task
all cut out for it.
How is Congress doing with the 13 anti-crime bills sent to the Hill by
President Nixon?
The answer is only fair. We must hope that the House and Senate
committees can speed up their deliberations in the next few months so that a
really creditable anti-crime record can be written by the 91st Congress.
Let me run down the list of what the Congress has done to date or has
failed to do in the fight against crime.
There is some progress on the organized crime control bill. That's the
bill which would create special grand juries to probe organized crime, with the
power to issue reports as well as return indictments. This bill permits
contempt-of-court citations against reluctant witnesses, sets stiffer penalties
for habitual, professional and organized criminals, and allows prosecutors to
compel testimony on condition the information will not be used against the witness
except in perjury or contempt actions. The Administration's illegal gambling bill
has been incorporated into the organized crime control bill.
The Senate passed the bill last Jan. 23, and the House Judiciary Committee
will start hearings on it May 20.
The Senate passed a comprehensive drug control bill last Jan. 28 but that
bill laid on the Speaker's table for more than three months because the House
Democratic Leadership couldn't decide which committee or committees to refer it to.
Last Thursday, Ways and Means Chairman Wilbur Mills and senior Republican
John Byrnes introduced a House drug control bill identical with the Senate-approved
bill but no hearings have been scheduled on it yet.
While the jurisdictional dispute has been going on, the House Interstate
and Foreign Commerce Committee has worked on a bill dealing with so-called soft
(more)
-5-
drugs. That bill will go before the full committee soon after subcommittee
approval.
The Senate passed the Public Defender Act April 30. It is pending in the
House Judiciary Committee.
A House subcommittee held hearings May 7 on the Federal Youth Corrections
Act. It's pending in a Senate subcommittee.
The Administration's Witness Immunity Act was made part of the Crime Control
Act in the Senate and passed Jan. 30. The House Judiciary Committee reported the
witness immunity bill favorably on May 5.
The Criminal Appeals Act is pending in subcommittees in both Houses. That's
the legislation which would allow the Justice Department to appeal directly to
the U.S. Appeals courts all cases thrown out of district courts on technicalities.
The Senate and House have each passed a bill which would increase the
number of Federal judgeships. The Senate bill provided for 13 more new judges than
the House bill, and so the difference will have to be worked out. The end result
should be between 65 and 70 new permanent and temporary judgeships and should help
eliminate some of the large backlog of pending cases.
A bill to increase the penalties of the Sherman Antitrust Act passed the
House Feb. 16. The Senate Judiciary Committee will take it up in executive session
May 19 or 20.
Although the House has passed the Post Office Committee's anti-obscenity
bill aimed at protecting minors, two other Administration anti-obscenity bills are
simply marking time in both the House and the Senate.
The Bail Reform Act also is pending in both Houses. Neither has there been
any action on the Administration bill aimed at those who have been practicing
terrorism by planting bombs in buildings.
As for the five anti-crime bills dealing with the District of Columbia,
those were wrapped into one package and have been passed by both Houses. But the
House and Senate still have to work out the differences in the two omnibus bills.
There is no more disturbing problem before this Nation today than the
ever-rising crime rate. So I urge that Congress face up to its responsibility to
help clear the criminal from our streets.
I am concerned because the drug control bill passed by the Senate has
languished on the Speaker's desk in the House.
Drug addicts account for 50 to 75 per cent of our street crimes. I believe
the Congress should help in the Administration fight against the narcotics traffic
(more)
-6-
by giving us the no-knock provision. The Administration is already making the
greatest possible effort to halt the importation of illegal drugs into this country.
To sum up congressional action on crime to date, the Senate has acted far
more speedily than the House although the Senate has unfortunately weakened some
of the Administration's anti-crime proposals. In the House there has been foot-
dragging, and the good intentions of some have been overcome by the inertia of others.
We need more anti-crime weapons but the Administration has struck some hard
blows at crime with the weapons at hand.
While it is true that the nationwide crime rate rose 11 per cent in 1969,
the fact remains that this represented a sharp drop from the rate of rise we had
been experiencing throughout the Sixties. Last year's 11 per cent increase, for
instance, was a big improvement over 1968, when crime rose by 17 per cent.
So we are making progress. We are making headway in fighting crime and, as
I mentioned at the outset, we are making progress in fighting inflation and in
establishing the basis for orderly economic growth.
I have said I am cautiously optimistic about the future of America. I see
everywhere about me reason to have faith in our country, reason to believe in our
great free society.
I do not despair over temporary setbacks. I believe we can lick inflation
and steer our economy to new heights of sound growth. I believe we can sharply
reduce crime and make our streets safe again.
But if we are to accomplish these objectives we must have faith. We must
believe in what we are doing. We must tell ourselves that we can achieve these
goals -- and we must believe it.
I say
WE CAN. I say
LET'S GET ON WITH THE JOB.
# # #
AN ADDRESS BY REP. GERALD R. FORD, R-MICH.
REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES
BEFORE THE BANKERS LUNCHEON
AT CANTON, OHIO
12 NOON, MONDAY, MAY 18, 1970
FOR RELEASE IN MONDAY PM's
I am most happy to be here with you today because the timing offers me an
opportunity to comment on some most important matters. And I do come before you
in my normal frame of mind -- cautiously optimistic.
The chief reason I am cautiously optimistic today in spite of some recent
explosive developments is that I see some bright prospects ahead -- for
business and for the Nation generally.
Despite the tense situation among the Nation's young people, I think the
country is going to come out all right. I believe there will be a general cooling
of emotions because we will achieve our objectives in our sweep of the Cambodian
sanctuaries and then withdraw.
Success in the Cambodian sweep will mean that our Vietnam troop withdrawals
will continue on schedule and may even be accelerated.
And here at home I look for a moderate upswing in the economy without great
risk of reviving inflationary pressures.
Speaking more specifically, I expect a definite uptrend in sales in
the months ahead while the economy continues adjusting toward relative price
stability.
This is not wishful thinking on my part. It is based on a number of factors
which are certain to give moderate stimulus to the economy while prices "settle in."
I am speaking primarily of the 15 per cent rise in Social Security benefits
which has already gone into effect, the 6 per cent Federal employe pay raise
which becomes effective in mid-May, the strong likelihood of an additional
5 per cent increase in Social Security, and the complete phasing out of the
surtax as of July 1.
Add these factors to Presidential lifting of the cutback on State and local
spending on Federally-assisted construction and the adopting of a less restrictive
(more)
-2-
Federal Reserve policy on money supply. The effect on the economy is bound to be
a quickening.
But let me emphasize this. While there has been an easing of the fiscal
and monetary brakes, there has been no abandonment of the fight against inflation.
I firmly believe our policy-makers have set a course which will restore real
economic growth without generating strong inflationary pressures.
The economic pace is now beginning to quicken, and it is reasonable to
expect that business news will make better reading as we move through 1970.
But while we have set the tone for some expansion of the economy, we must
pursue a non-inflationary course long enough to restore confidence in the dollar's
buying power.
There are some who have criticized the Administration's economic policies
because they favor a hard, tough dose of deflation. I don't think this kind of
action would make sense. Let us not forget for one minute that the unemployment
rate for Negroes is nearly double that for white members of the work force.
Price and wage controls don't make much sense, either. Freezing prices
would leave many a businessman with his prices at low levels relative to the
prices of his raw materials.
Massive distortion would occur if we attempted to freeze prices and wages.
And we must remember that once those ceilings are imposed it is no easy task to
eliminate them.
Some Americans are wondering whether we actually are making progress in
establishing the basis for more orderly and non-inflationary growth. They are
concerned about the sustained rise in the price level and wonder whether the
Federal budget is drifing toward deficit.
There is no question that the tax-cutting and over-spending the Congress
has engaged in has had an unfavorable impact on capital markets, interest rates,
mortgage markets and the cost of living generally.
We are also concerned about recent wage settlements. They have clearly
been large enough to produce substantial increases in costs. It is elementary that
a rising cost level tends to mean a rising price level.
This means that businessmen must make tough decisions -- decisions that
offset rising costs and inefficiencies. This is the process that must take place
if we are to establish the basis for greater price-cost stability in the years
ahead.
(more)
-3-
While these concerns are real, there is evidence that much progress has
been made.
Fundamental policies of disinflation were put into effect and adhered to.
There was sustained restraint in 1969 after years of monetary expansion that was
at least double what was required for suitable economic growth.
Currently the Federal budget continues to be consistent with the general
game plan.
There is no reason to expect the budget to deflect the orderly course of
the economy.
Our monetary policy now is modestly less restrictive. This is consistent
with the needs of the economy, for we know the effects of such a change in policy
seldom show up for 6 to 12 months. This is the right time for this policy change
although it may seen premature to some.
What are the prospects for good gains in production and incomes as we move
on through the remaining months of 1970?
Those prospects are bright. Consumers' after-tax incomes will be rising
rapidly in the months ahead. This points toward increases in consumer spending
and retail sales during the rest of this year. And we do not have a general excess
of inventories to work off before the economy can resume more rapid expansion.
So the raw materials are there for a more vigorous and orderly expansion
of the economy, while price-level developments are becoming encouraging.
Commodity prices are showing visible effects of measures taken to cool off
overheating in the economy.
The price index for all commodities has been rising at the rate of
2.9 per cent per year in 1970, compared with a 5.7 per cent rate in the first half
of 1969 and a 5.3 per cent rate in the second half of last year.
The price index for all commodities but food has been rising in 1970 at the
rate of 1.7 per cent per year. This is a sharp drop from the 4.9 per cent annual
rate that prevailed in the first half of 1969.
So the evidence is that we can resume a moderately more rapid rate of
economic expansion without pushing prices back into orbit.
We can make no more important contribution to our economic and social
welfare in the decade of the Seventies than to follow through with this beginning
we have made and establish a firm basis for vigorous growth, a dollar in which we
can have confidence, and abundant job opportunities for all.
(more)
-4-
Now, since this talk is in the nature of a report to you from Capitol Hill,
I would like to turn to a topic of special interest to all businessmen -- crime.
Let me say first of all that I believe the courts have become too lenient,
allowing many criminals to return to the streets to resume crime careers. As a
case in point, an FBI study shows that of 18,000 persons released from custody in
1963, 63 per cent were rearrested within five years.
So we have much work to do in combatting crime, and Congress has its task
all cut out for it.
How is Congress doing with the 13 anti-crime bills sent to the Hill by
President Nixon?
The answer is only fair. We must hope that the House and Senate
committees can speed up their deliberations in the next few months so that a
really creditable anti-crime record can be written by the 91st Congress.
Let me run down the list of what the Congress has done to date or has
failed to do in the fight against crime.
There is some progress on the organized crime control bill. That's the
bill which would create special grand juries to probe organized crime, with the
power to issue reports as well as return indictments. This bill permits
contempt-of-court citations against reluctant witnesses, sets stiffer penalties
for habitual, professional and organized criminals, and allows prosecutors to
compel testimony on condition the information will not be used against the witness
except in perjury or contempt actions. The Administration's illegal gambling bill
has been incorporated into the organized crime control bill.
The Senate passed the bill last Jan. 23, and the House Judiciary Committee
will start hearings on it May 20.
The Senate passed a comprehensive drug control bill last Jan. 28 but that
bill laid on the Speaker's table for more than three months because the House
Democratic Leadership couldn't decide which committee or committees to refer it to.
Last Thursday, Ways and Means Chairman Wilbur Mills and senior Republican
John Byrnes introduced a House drug control bill identical with the Senate-approved
bill but no hearings have been scheduled on it yet.
While the jurisdictional dispute has been going on, the House Interstate
and Foreign Commerce Committee has worked on a bill dealing with so-called soft
(more)
-5-
drugs. That bill will go before the full committee soon after subcommittee
approval.
The Senate passed the Public Defender Act April 30. It is pending in the
House Judiciary Committee.
A House subcommittee held hearings May 7 on the Federal Youth Corrections
Act. It's pending in a Senate subcommittee.
The Administration's Witness Immunity Act was made part of the Crime Control
Act in the Senate and passed Jan. 30. The House Judiciary Committee reported the
witness immunity bill favorably on May 5.
The Criminal Appeals Act is pending in subcommittees in both Houses. That's
the legislation which would allow the Justice Department to appeal directly to
the U.S. Appeals courts all cases thrown out of district courts on technicalities.
The Senate and House have each passed a bill which would increase the
number of Federal judgeships. The Senate bill provided for 13 more new judges than
the House bill, and so the difference will have to be worked out. The end result
should be between 65 and 70 new permanent and temporary judgeships and should help
eliminate some of the large backlog of pending cases.
A bill to increase the penalties of the Sherman Antitrust Act passed the
House Feb. 16. The Senate Judiciary Committee will take it up in executive session
May 19 or 20.
Although the House has passed the Post Office Committee's anti-obscenity
bill aimed at protecting minors, two other Administration anti-obscenity bills are
simply marking time in both the House and the Senate.
The Bail Reform Act also is pending in both Houses. Neither has there been
any action on the Administration bill aimed at those who have been practicing
terrorism by planting bombs in buildings.
As for the five anti-crime bills dealing with the District of Columbia,
those were wrapped into one package and have been passed by both Houses. But the
House and Senate still have to work out the differences in the two omnibus bills.
There is no more disturbing problem before this Nation today than the
ever-rising crime rate. So I urge that Congress face up to its responsibility to
help clear the criminal from our streets.
I am concerned because the drug control bill passed by the Senate has
languished on the Speaker's desk in the House.
Drug addicts account for 50 to 75 per cent of our street crimes. I believe
the Congress should help in the Administration fight against the narcotics traffic
(more)
-6-
by giving us the no-knock provision. The Administration is already making the
greatest possible effort to halt the importation of illegal drugs into this country.
To sum up congressional action on crime to date, the Senate has acted far
more speedily than the House although the Senate has unfortunately weakened some
of the Administration's anti-crime proposals. In the House there has been foot-
dragging, and the good intentions of some have been overcome by the inertia of others.
We need more anti-crime weapons but the Administration has struck some hard
blows at crime with the weapons at hand.
While it is true that the nationwide crime rate rose 11 per cent in 1969,
the fact remains that this represented a sharp drop from the rate of rise we had
been experiencing throughout the Sixties. Last year's 11 per cent increase, for
instance, was a big improvement over 1968, when crime rose by 17 per cent.
So we are making progress. We are making headway in fighting crime and, as
I mentioned at the outset, we are making progress in fighting inflation and in
establishing the basis for orderly economic growth.
I have said I am cautiously optimistic about the future of America. I see
everywhere about me reason to have faith in our country, reason to believe in our
great free society.
I do not despair over temporary setbacks. I believe we can lick inflation
and steer our economy to new heights of sound growth. I believe we can sharply
reduce crime and make our streets safe again.
But if we are to accomplish these objectives we must have faith. We must
believe in what we are doing. We must tell ourselves that we can achieve these
goals -- and we must believe it.
I say
WE CAN. I say
LET'S GET ON WITH THE JOB.
# # #