Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
1133458
label
3/12/76 - Peoria Rotary Club Luncheon
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1133458
sourceUrl
contentType
document
title
3/12/76 - Peoria Rotary Club Luncheon
citationUrl
collections
Carla A. Hills Speeches
Speeches
subjects
Capitalism
Federal aid
Fiscal policy
Government regulation
Housing
Industries
Presidential campaign, 1976
Veto power
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1133458
coverageEndDate
day
12
logicalDate
1976-03-12
month
3
year
1976
coverageStartDate
day
12
logicalDate
1976-03-12
month
3
year
1976
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
5c34e6ecc402802d
ocrText
The original documents are located in Box 2, folder "3/12/76 - Peoria Rotary Club
Luncheon" of the Carla A. Hills Speeches 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. Gerald Ford 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
PEORIA ROTARY CLUB LUNCHEON
MARCH 12, 1976
FELLOW ROTARIANS! WELL, ALMOST. My DAD WAS PRESIDENT
OF THE HOLLYWOOD CALIFORNIA ROTARY CLUB, AND A MORE DEDICATED
ROTARIAN WOULD BE HARD TO FIND.
I AM TRULY IMPRESSED WITH THE FRANK OPENNESS OF THE
PEOPLE OF THE "INLAND EMPIRE".
You TAKE SOME RIBBING, I KNOW, FROM THE PHRASE: "Yes,
BUT WILL IT PLAY IN PEORIA?"
BUT, I SUSPECT THAT SAYING CAME FROM A RECOGNITION THAT,
OUT HERE WHERE PEOPLE HAVE NOTHING TO HIDE, YOU GET AN ABSOLUTELY
HONEST REACTION TO ANY IDEA.
IT IS A SPECIAL PRIVILEGE FOR ME TO HAVE THE CHANCE TO
CONFER WITH YOU BUSINESS AND PROFESSIONAL PEOPLE -- LEADERS
OF A CITY WHOSE CIVIC PRIDE IS EVERYWHERE EVIDENCED BY
COMMUNITY DEVELOPMENT AND IMPROVEMENT PROGRAMS. YOUR DOWNTOWN
PEORIA PLAN -- YOUR LONG-RANGE PROJECTION OF A PEORIA CIVIC
AND CONVENTION CENTER -- TESTIFY TO YOUR FORESIGHT.
&
GERALD
-2-
THE OUTSTANDING QUALITY OF YOUR ELECTED REPRESENTATIVES
DEMONSTRATES YOUR GOOD JUDGMENT. IT IS MY FINE FORTUNE TO
HAVE THE OPPORTUNITY TO WORK WITH YOUR CONGRESSMAN BoB MICHEL,
WHO IS TALENTED, HARD WORKING AND CLEARLY A LEADER IN THE
CONGRESSIONAL BODY. AND YOUR MAYOR, DICK CARVER, IS ONE OF
THE MOST ABLE, DEDICATED AND VISIONARY MAYORS WE HAVE IN THE
COUNTRY,
So, I WOULD -- IN THIS SPLENDID SETTING -- LIKE TO TAKE
ADVANTAGE OF THE WIDE RANGE OF EXPERIENCE AND TALENT GATHERED
UNDER THIS ROOF TO DISCUSS WITH YOU, THE ECONOMIC POLICIES
THAT SHOULD GUIDE US IN THE HALF DECADE TO COME,
WE ALL KNOW THAT THE ERA OF THE 1960's WAS ONE OF
INCREASING POPULATION, AND ONE IN WHICH THE INCREASING
COMPLEXITIES OF MODERN LIVING BECAME MORE APPARENT. ONE
WOULD EXPECT, THEREFORE, A STEADILY INCREASING FEDERAL BUDGET.
BUT, WHO WOULD HAVE GUESSED IN 1962 THAT THE FEDERAL
BUDGET WHICH HAD BEEN BELOW $100 BILLION FROM THIS NATION'S
BIRTH TO THAT YEAR WOULD DOUBLE TO $200 BILLION BY 1971 AND
THEN TRIPLE TO $300 BILLION IN 1975?
-3-
By HINDSIGHT, WE CAN CLEARLY SEE WHAT HAPPENED TO AMERICA
IN THE PAST TEN YEARS -- A DECADE WHICH THE KNOWLEDGEABLE
SEERS OF THE SIXTIES HAD FORESEEN AS AN ERA OF GOOD WILL AND
GOOD LIVING FOR ALL AMERICANS,
IN THAT DECADE WE SQUANDERED OUR RESOURCES, DECIMATED
OUR CITIES, ROLLED UP A STAGGERING $350 BILLION FEDERAL DEBT,
FAILED TO BUY ANY REAL SOLUTIONS TO OUR COMPLEX ECONOMIC AND
SOCIAL PROBLEMS, FIRED A RAGING INFLATION, AND GENERATED A
PAINFUL RECESSION. AND IN so DOING, WE SEVERELY SHOOK PUBLIC
CONFIDENCE IN THE CREDIBILITY AND STABILITY OF BOTH BUSINESS
AND GOVERNMENT.
INDEED THE LACK OF VOTER CONFIDENCE IN THE ABILITY OF
EITHER THE PUBLIC OR PRIVATE SECTORS TO FIND ECONOMIC
SOLUTIONS HAS PLACED OUR FREE ENTERPRISE SYSTEM IN ITS
GREATEST JEOPARDY SINCE THE GREAT DEPRESSION.
IT IS STILL VERY "AMERICAN" TO SING THE PRAISES OF
OUR FREE ECONOMY THAT HAS MADE AMERICA THE ENVY OF THE
WORLD. AND, RECENT POLLS FINDING THAT MOST AMERICANS WOULD
MAKE SACRIFICES TO PRESERVE THE SYSTEM, MAKE WARM READING,
-4-
BUT, WHAT WE SAY ABOUT FREEING OUR ECONOMIC SYSTEM FROM
FEDERAL SHACKLES AND WHAT WE ACTUALLY DO DIFFER MEASURABLY,
TALK OF LIMITING "BIG GOVERNMENT" HAS INCREASED ON BOTH
SIDES OF THE POLITICAL AISLE; BUT, so HAS THE FLOW OF LAWS,
REGULATION AND APPROPRIATIONS THAT INCREASE GOVERNMENT
INTERVENTION AND INFLUENCE.
TALK OF CUTTING GOVERNMENT EXPENDITURES WHICH NOW COUNT
FOR ABOUT 40 PERCENT OF OUR GROSS NATIONAL PRODUCT HAS
INCREASED, BUT JUST A FEW WEEKS AGO, 321 CONGRESSMEN,
REPRESENTING A MAJORITY OF THE AMERICAN PEOPLE VOTED A
$6 BILLION BILL TO EXPAND PUBLIC WORKS AND PUBLIC SERVICE
JOBS --- A COSTLY ELECTION YEAR PORK BARREL BY ANY HISTORIC
STANDARD.
THERE WILL ALWAYS BE PIED PIPERS FOR PROSPERITY WHOSE
TUNE WILL FOREVER BE SPEND. THEIR TUNE FALLS PLEASANTLY
ON THE EAR BECAUSE IT FAILS TO REMIND THE LISTENERS THAT
THEY ARE THE GOVERNMENT -- AND THE SOURCE -- IN THE LAST
ANALYSIS OF GOVERNMENT MONEY.
-5-
BUT, THE PIPER'S TUNE HAS NO VERSE ABOUT WHAT HAPPENS
TO INTEREST RATES AND THE AVAILABILITY OF MORTGAGE MONEY,
AND NO REFRAIN THAT CAUTIONS ABOUT THE $100 MILLION WE PAY
EACH AND EVERY DAY JUST TO COVER THE INTEREST ON OUR EXISTING
FEDERAL DEBT -- WHICH NOW EXCEEDS $350 BILLION.
POLITICAL CAMPAIGNS HAVE BEEN WAGED AND WON ON THE
PROMISE OF "MORE FOR EVERYBODY". RESTRAINT AND REASON
HAVE NOT BEEN THE RHETORIC OF MOST CANDIDATES.
AND, IN FACT, MANY STILL SINCERELY BELIEVE IN THE
POWER OF GOVERNMENT TO RIGHT EVERY WRONG IN SPITE OF THE
EVIDENCE. You MAY RECALL THE CONTRAST BETWEEN SENATOR
MUSKIE'S RESPONSE TO THE PRESIDENT'S STATE OF THE UNION
MESSAGE WHEREIN HE SAID:
"WE CAN HAVE CONFIDENCE THAT GOVERNMENT
CAN
PUT PEOPLE BACK TO WORK."
WITH THE PRESIDENT'S THEME THAT MORE REAL AND LASTING JOBS
ARE CREATED THROUGH THE PRIVATE SECTOR.
-6-
THE AMERICAN PEOPLE -- CONFRONTED BY THIS CLASH OF
IDEOLOGY -- MUST MAKE A PROFOUND CHOICE GROUNDED IN ECONOMICS.
INDEED, IT IS A CHOICE THEY WILL BE MAKING NEXT TUESDAY IN
ILLINOIS, IN SUCCEEDING PRIMARY CONTESTS, AND IN NOVEMBER
-- AS THEY DECIDE UPON THOSE POLICIES AND THOSE PERSONS WHOM
THEY SHALL CHOOSE TO LEAD THIS NATION OVER THE NEXT FOUR YEARS.
AND, IF THE PUBLIC IS VAGUE ABOUT THE FINE POINTS OF
THE BUSINESS PROFITS STRUCTURE -- AS POINTED OUT IN GALLOP'S
OPINION RESEARCH POLL QUOTED IN THE FEBRUARY 16TH ISSUE OF
NEWSWEEK -- THERE ARE NEW SIGNS OF AN INTENSE INTEREST IN
CURRENT ECONOMICS ON THE PART OF THE PEOPLE.
THOSE SIGNS CAN BE SEEN IN MOST LIVING ROOMS OF THE
COUNTRY ON THE NIGHTLY NEWS SHOWS, AS ON-SCENE REPORTERS
AND ANCHOR MEN COVER THE BUSINESS AND FINANCIAL SCENE
WITH AS MUCH CARE AND DETAIL AS THEY GIVE TO THE TOP-
BREAKING NEWS EVENTS.
THE GNP; THE Dow JONES; HOUSING STARTS; STEEL OUTPUT;
DETROIT PRODUCTION; THE UNEMPLOYMENT RATE; THE PRESIDENT'S
BUDGET; MORTGAGE RATES -- ARE NOT JUST "ECONOMIC" NEWS,
BUT COMPELLING NATIONAL NEWS.
-7-
THE PUBLIC INTEREST IS THERE, BUT, IT IS DISHEARTENING
TO CONCLUDE, AS WE MUST, THAT A GOOD MEASURE OF IT STEMS
FROM CYNICISM ROOTED IN A GROWING DISTRUST OF ALL INSTITUTIONS
-- AND -- THAT MORE AND MORE AMERICANS SEEM TO SEE THEIR
OPTIONS NARROWED TO A CHOICE BETWEEN EVILS: EXPANSIVE
GOVERNMENT WITH UNPRODUCTIVE INDUSTRY OR LIMITED GOVERNMENT
WITH IRRESPONSIBLE INDUSTRY,
UNLESS WE CAN TAKE STEPS TO MAKE THE ALTERNATIVES
MORE ATTRACTIVE, SOONER OR LATER THE GROWING WEIGHT OF
THESE CHOICES WILL BREAK DOWN THE FREE SYSTEM, WHICH WE
ALL ENDORSE, AND CREATE A CLIMATE IN WHICH EXTREME CALLS
FOR ECONOMIC RESTRUCTURING WILL SEEM LESS STRIDENT AND
MORE SENSIBLE.
IN HIS STATE OF THE UNION ADDRESS, PRESIDENT FORD
CALLED FOR "COMMON SENSE" GOVERNMENT. AND, HE PROPOSED A
FEDERAL BUDGET FOR FISCAL 1977 THAT "PROMISES NO MORE THAN
WE CAN DELIVER", YET, PROVIDES THE MEANS TO "DELIVER ON
ALL THAT WE PROMISE".
-8-
IT SOUNDS IN HORSE-AND-BUGGY ABSOLUTES TO ASK: How
MUCH OR HOW LITTLE GOVERNMENT DO WE NEED? THE ANALYSIS
SIMPLY MUST BE MORE QUALITATIVE: WHAT KIND OF GOVERNMENT
WILL WE HAVE IN THIS NATION'S THIRD CENTURY? WHERE, HOW
QUICKLY, AND HOW FAR DO WE MOVE THE BALANCE OF POWER FROM
PUBLIC TO THE PRIVATE SECTOR?
To SAY THAT THE GOVERNMENT SHOULD STOP THE WORLD AND
GET OFF -- AT THIS POINT IN OUR COMBINED HISTORY -- IS A
TURN-OF-THE-CENTURY ABSURDITY. FEDERAL STIMULANTS CAN BE
USED TO BOOST SAGGING SECTORS OF THE ECONOMY WHEN AND WHERE
NECESSARY WITHOUT FEDERALIZING THE ENTIRE ECONOMY,
BUT, AS WE MAKE OUR CHOICE OF LEADERS FOR THE FUTURE,
WE CANNOT IGNORE THE LESSON FOR WHICH WE PAID so DEARLY IN
THE 1960's -- THAT NO MATTER HOW MUCH WE MAY WILL IT -- A
"SOCIETY" IS NOT SUDDENLY MADE "GREAT" THROUGH WELL-MEANING
PROGRAMS WHOSE SOLE SOURCE OF SUSTENANCE IS THE FEDERAL
EXCHEQUER.
WE KNOW THAT OUR PRIVATE ECONOMY CANNOT SUSTAIN AN
AWESOME FEDERAL DEFICIT OF TODAY'S MAGNITUDE WITHOUT THE
EROSION OF THE VERY FINANCIAL RESOURCES THAT ARE VITAL TO
THE GROWTH AND PRODUCTIVITY OF OUR FREE ENTERPRISE SYSTEM.
-9-
How, FOR EXAMPLE, WILL AMERICA BUILD AND BUY HOMES
IN WHICH TO LIVE IF GOVERNMENT IS THE BIGGEST COMPETITIVE
BORROWER OF AVAILABLE MORTGAGE MONEY?
How WILL WE ACHIEVE REAL ECONOMIC GROWTH IF THE
GOVERNMENT CONTINUES TO COMPETE WITH THE PRIVATE SECTOR
FOR DOLLARS TO BUY PUBLIC SERVICE JOBS WHEN WE KNOW THAT
JOBS CREATED IN THE PRIVATE SECTOR HAVE A FAR GREATER AND
MORE LASTING IMPACT?
YET, YOU AND I KNOW THAT IT IS FAR MORE EXPEDIENT IN
THE POLITICS OF AN ELECTION CYCLE TO SAY "YES" TO MORE
FEDERAL EXPENDITURES. So, I AM VERY PROUD OF PRESIDENT
FORD'S COURAGE IN SAYING "NO" TO A SUCCESSION OF SPENDING
MEASURES DURING 1975 THAT WOULD HAVE FUELED THE INFLATION
HE HAS CUT IN HALF.
I LOOK BACK WITH EQUAL PRIDE AT THE PRESIDENT'S
WILLINGNESS TO SAY "YES" TO CAREFULLY THOUGHT-OUT MEASURES
TO INDUCE ECONOMIC RECOVERY, THESE HAVE BEEN THE VERY
TOUGH POLICY CALLS THAT HAVE LED US TO THE TURN-ABOUT NOW
FIRMLY IN PROGRESS,
-10-
FOR EXAMPLE, IN THE FIELD OF HOUSING, HE SAID "YES"
TO THE USE OF MORTGAGE PURCHASE ASSISTANCE, ENABLING HUD
-- OVER THE PAST TWO YEARS -- TO OFFER TO BUY FOR RESALE
OVER 500,000 MORTGAGES BEARING BELOW-MARKET INTEREST RATES
-- ENOUGH TO CRANK UP THE SINGLE-FAMILY HOUSING INDUSTRY,
WITHOUT CRANKING UP MORE INFLATION.
HE SAID "YES" AGAIN IN OCTOBER, ENABLING HUD TO REACTIVATE
ITS HOMEOWNERSHIP SUBSIDY PROGRAM UNDER WHICH IT SUBSIDIZES
DOWN TO 5 PERCENT THE INTEREST ON A MORTGAGE IN THE RANGE OF
$20,000 TO $25,000.
THIS PROGRAM TRANSLATES INTO HELP FOR 250,000 LOW AND
MODERATE HOMEBUYERS, GENERATES $6.5 BILLION IN CONSTRUCTION
ACTIVITY AND PUTS 500,000 PEOPLE BACK TO WORK.
THESE PROGRAMS SOUGHT NOT TO FEDERALIZE A SICK INDUSTRY
BUT RATHER TO ENCOURAGE RECOVERY THROUGH PRIVATE ENTERPRISE.
AND, THEY WORKED. TODAY, THE SINGLE-FAMILY HOUSING
MARKET IS BACK ON THE ROAD TO ROBUST HEALTH, WITH INDUSTRY
ECONOMISTS REVISING THEIR FORECASTS FOR 1976 WELL UPWARD
FROM THEIR END-OF-THE-YEAR ESTIMATES,
-11-
AND, LAST MONTH, TO REMEDY THE LAG IN THE RECOVERY IN
THE MULTIFAMILY MARKET, PRESIDENT FORD APPROVED HUD's
RELEASE OF $3 BILLION OF FEDERAL FUNDS TO PURCHASE MULTI-
FAMILY MORTGAGES -- WHICH COVERS ABOUT 120,000 HOUSING UNITS,
AGAIN, THE OBJECTIVE IS TO SPARK RECOVERY WITHOUT
RE-FIRING THE INFLATION.
IN ALL INSTANCES, IT IS PRIVATE INDUSTRY HELPED BY
GOVERNMENT THAT IS RESTORING OUR HOUSING ECONOMY -- NOT
THE OTHER WAY AROUND.
BUT REMEMBER, THAT LAST SPRING THE PRESIDENT ISSUED
A RESOUNDING "NO" TO CONGRESSIONAL EFFORTS TO PASS A MULTI-
BILLION DOLLAR HOUSING BILL THAT WOULD BY EVERY REASONABLE
STANDARD HAVE BEEN COUNTER-PRODUCTIVE.
WHAT WE HAVE NOW IS A GRADUAL BUT STEADY HOUSING
RECOVERY, WHAT WE COULD HAVE HAD WAS A DISASTROUS SPENDING
BILL HAD IT NOT BEEN FOR THE PRESIDENT'S STRENGTH IN ISSUING
A VETO UNPOPULAR AT THE TIME AND THE POLITICAL CAPACITY TO
MAKE THAT VETO HOLD.
-12-
AND, so IT IS WITH BUSINESS AND INDUSTRY ACROSS THE
BOARD -- AS PRESIDENT FORD STICKS TO HIS GUNS IN LIMITING
THE FEDERAL PRESENCE TO PROVIDING JUDICIOUS STIMULANTS
WHERE ABSOLUTELY INDICATED AND IN STAVING OFF FURTHER
INFLATION so THE PRIVATE SECTOR CAN GET ON WITH ITS RIGHTFUL
JOBS,
As A RESULT, CONFIDENCE IS RETURNING -- TO THE POINT
WHERE FORTUNE's LEAD EDITORIAL, LAST MONTH, CONCLUDED THAT
WE'RE EVEN DOING BETTER THAN WE THINK.
BUT WE STILL HAVE A GOOD WAY TO GO BEFORE WE CAN HAVE
THE LASTING CONFIDENCE THAT COMES FROM STRONG ECONOMIC
STABILITY -- AT ALL LEVELS OF THE INCOME LADDER,
PUBLIC CONFIDENCE IN GOVERNMENT AND INDUSTRY IS IN
DIRECT PROPORTION TO THE BREAD-WINNER'S CONFIDENCE IN
HIS OR HER CHANCE TO MAKE IT, MULTIPLIED BY ALL THE BREAD-
WINNERS IN THE NATION.
THE CHALLENGE OF OUR DECADE -- FOR BOTH BUSINESS AND
FOR GOVERNMENT -- IS TO MAKE OUR SYSTEM OF FREE ENTERPRISE
WORK, WHERE THE BARRIER IS NOT so MUCH A HARSH ECONOMIC
CLIMATE AS A LINGERING SAG IN PUBLIC CONFIDENCE,
-13-
THE NATION IS ON A SOUND ECONOMIC COURSE. WITH PATIENCE
AND RESTRAINT I KNOW THAT WE CAN MEET THAT CHALLENGE --
RESTORING OUR FAITH IN OURSELVES AS A NATION AND IN OUR
LEADERSHIP IN A WORLD DESPERATELY IN NEED OF A REBIRTH OF
FAITH IN FREE DEMOCRATIC GOVERNMENT.
THANK YOU VERY MUCH.