Many undertakings have been organized and forwarded during the past year to
meet the new and changing emergencies which have constantly confronted us.
Broadly the community has cooperated to meet the needs of honest distress,
and to take such emergency measures as would sustain confidence in our
financial system and would cushion the violence of liquidation in industry
and commerce, thus giving time for orderly readjustment of costs,
inventories, and credits without panic and widespread bankruptcy. These
measures have served those purposes and will promote recovery.
In these measures we have striven to mobilize and stimulate private
initiative and local and community responsibility. There has been the least
possible Government entry into the economic field, and that only in
temporary and emergency form. Our citizens and our local governments have
given a magnificent display of unity and action, initiative and patriotism
in solving a multitude of difficulties and in cooperating with the Federal
Government.
For a proper understanding of my recommendations to the Congress it is
desirable very briefly to review such activities during the past year.
The emergencies of unemployment have been met by action in many directions.
The appropriations for the continued speeding up of the great Federal
construction program have provided direct and indirect aid to employment
upon a large scale. By organized unity of action, the States and
municipalities have also maintained large programs of public improvement.
Many industries have been prevailed upon to anticipate and intensify
construction. Industrial concerns and other employers have been organized
to spread available work amongst all their employees, instead of
discharging a portion of them. A large majority have maintained wages at as
high levels as the safe conduct of their business would permit. This course
has saved us from industrial conflict and disorder which have characterized
all previous depressions. Immigration has been curtailed by administrative
action. Upon the basis of normal immigration the decrease amounts to about
300,000 individuals who otherwise would have been added to our
unemployment. The expansion of Federal employment agencies under
appropriations by the Congress has proved most effective. Through the
President's organization for unemployment relief, public and private
agencies were successfully mobilized last winter to provide employment and
other measures against distress. Similar organization gives assurance
against suffering during the coming winter. Committees of leading citizens
are now active at practically every point of unemployment. In the large
majority they have been assured the funds necessary which, together with
local government aids, will meet the situation. A few exceptional
localities will be further organized. The evidence of the Public Health
Service shows an actual decrease of sickness and infant and general
mortality below normal years. No greater proof could be adduced that our
people have been protected from hunger and cold and that the sense of
social responsibility in the Nation has responded to the need of the
unfortunate.
To meet the emergencies in agriculture the loans authorized by Congress for
rehabilitation in the drought areas have enabled farmers to produce
abundant crops in those districts. The Red Cross undertook and
magnificently administered relief for over 2,500,000 drought sufferers last
winter. It has undertaken this year to administer relief to 100,000
sufferers in the new drought area of certain Northwest States. The action
of the Federal Farm Board in granting credits to farm cooperatives saved
many of them from bankruptcy and increased their purpose and strength. By
enabling farm cooperatives to cushion the fall in prices of farm products
in 1930 and 1931 the Board secured higher prices to the farmer than would
have been obtained otherwise, although the benefits of this action were
partially defeated by continued world overproduction. Incident to this
action the failure of a large number of farmers and of country banks was
averted which could quite possibly have spread into a major disaster. The
banks in the South have cooperated with the Farm Board in creation of a
pool for the better marketing of accumulated cotton. Growers have been
materially assisted by this action. Constant effort has been made to reduce
overproduction in relief of agriculture and to promote the foreign buying
of agricultural products by sustaining economic stability abroad.
To meet our domestic emergencies in credit and banking arising from the
reaction to acute crisis abroad the National Credit Association was set up
by the banks with resources of $500,000,000 to support sound banks against
the frightened withdrawals and hoarding. It is giving aid to reopen solvent
banks which have been closed. Federal officials have brought about many
beneficial unions of banks and have employed other means which have
prevented many bank closings. As a result of these measures the hoarding
withdrawals which had risen to over $250,000,000 per week after the British
crisis have substantially ceased.