Part 15

If the vicious spiral of inflation ever gets under way, the whole economic system will stagger. Prices and wages will go up so rapidly that the entire production program will be endangered. The cost of the war, paid by taxpayers, will jump beyond all present calculations. It will mean an uncontrollable rise in prices and in wages, which can result in raising the overall cost of living as high as another 20 percent soon. That would mean that the purchasing power of every dollar that you have in your pay envelope, or in the bank, or included in your insurance policy or your pension, would be reduced to about eighty centsą worth. I need not tell you that this would have a demoralizing effect on our people, soldiers and civilians alike.

Overall stabilization of prices, and salaries, wages and profits is necessary to the continued increasing production of planes and tanks and ships and guns.

In my message to Congress today, I have said that this must be done quickly. If we wait for two or three or four or six months it may well be too late.

I have told the Congress that the administration cannot hold the actual cost of food and clothing down to the present level beyond October first.

Therefore, I have asked the Congress to pass legislation under which the President would be specifically authorized to stabilize the cost of living, including the price of all farm commodities. The purpose should be to hold farm prices at parity, or at levels of a recent date, whichever is higher. The purpose should also be to keep wages at a point stabilized with today's cost of living. Both must be regulated at the same time; and neither one of them can or should be regulated without the other.

At the same time that farm prices are stabilized, I will stabilize wages.

That is plain justice--and plain common sense.

And so I have asked the Congress to take this action by the first of October. We must now act with the dispatch which the stern necessities of war require.

I have told the Congress that inaction on their part by that date will leave me with an inescapable responsibility, a responsibility to the people of this country to see to it that the war effort is no longer imperiled by the threat of economic chaos.

As I said in my message to the Congress:

In the event that the Congress should fail to act, and act adequately, I shall accept the responsibility, and I will act.

The President has the powers, under the Constitution and under Congressional Acts, to take measures necessary to avert a disaster which would interfere with the winning of the war.

I have given the most careful and thoughtful consideration to meeting this issue without further reference to the Congress. I have determined, however, on this vital matter to consult with the Congress.

There may be those who will say that, if the situation is as grave as I have stated it to be, I should use my powers and act now. I can only say that I have approached this problem from every angle, and that I have decided that the course of conduct which I am following in this case is consistent with my sense of responsibility as President in time of war, and with my deep and unalterable devotion to the processes of democracy.

The responsibilities of the President in wartime to protect the nation are very grave. This total war, with our fighting fronts all over the world, makes the use of the executive power far more essential than in any previous war.

If we were invaded, the people of this country would expect the President to use any and all means to repel the invader.

Now the revolution and the war between the states were fought on our own soil, but today this war will be won or lost on other continents and in remote seas. I cannot tell what powers may have to be exercised in order to win this war.

The American people can be sure that I will use my powers with a full sense of responsibility to the Constitution and to my country. The American people can also be sure that I shall not hesitate to use every power vested in me to accomplish the defeat of our enemies in any part of the world where our own safety demands such defeat.

And when the war is over, the powers under which I act will automatically revert to the people of the United States--to the people to whom those powers belong.

I think I know the American farmers. I know they are as wholehearted in their patriotism as any other group. They have suffered from the constant fluctuations of farm prices-- occasionally too high, more often too low. Nobody knows better than farmers the disastrous effects of wartime inflationary booms, and postwar deflationary panics.

So I have also suggested today that the Congress make our agricultural economy more stable. I have recommended that in addition to putting ceilings on all farm products now, we also place a definite floor under those prices for a period beginning now, continuing through the war, and for as long as necessary after the war. In this way we will be able to avoid the collapse of farm prices that happened after the last war. The farmers must be assured of a fair minimum price during the readjustment period which will follow the great, excessive world food demands which now prevail.

We must have some floor under farm prices, as we must have under wages, if we are to avoid the dangers of a postwar inflation on the one hand, or the catastrophe of a crash in farm prices and wages on the other.

Today I have also advised the Congress of the importance of speeding up the passage of the tax bill. The federal treasury is losing millions of dollars each and every day because the bill has not yet been passed. Taxation is the only practical way of preventing the incomes and profits of individuals and corporations from getting too high.

I have told the Congress once more that all net individual incomes, after payment of all taxes, should be limited effectively by further taxation to a maximum net income of $25,000 a year. And it is equally important that corporate profits should not exceed a reasonable amount in any case.

The nation must have more money to run the war. People must stop spending for luxuries. Our country needs a far greater share of our incomes.

For this is a global war, and it will cost this nation nearly one hundred billion dollars in 1943.

In that global war there are now four main areas of combat; and I should like to speak briefly of them, not in the order of their importance, for all of them are vital and all of them are interrelated.

1. The Russian front. Here the Germans are still unable to gain the smashing victory which, almost a year ago, Hitler announced he had already achieved. Germany has been able to capture important Russian territory. Nevertheless, Hitler has been unable to destroy a single Russian Army; and this, you may be sure, has been, and still is, his main objective. Millions of German troops seem doomed to spend another cruel and bitter winter on the Russian front. Yes, the Russians are killing more Nazis, and destroying more airplanes and tanks than are being smashed on any other front. They are fighting not only bravely but brilliantly. In spite of any setbacks Russia will hold out, and with the help of her Allies will ultimately drive every Nazi from her soil.

2. The Pacific Ocean Area. This area must be grouped together as a whole--every part of it, land and sea. We have stopped one major Japanese offensive; and we have inflicted heavy losses on their fleet. But they still possess great strength; they seek to keep the initiative; and they will undoubtedly strike hard again. We must not overrate the importance of our successes in the Solomon Islands, though we may be proud of the skill with which these local operations were conducted. At the same time, we need not underrate the significance of our victory at Midway. There we stopped the major Japanese offensive.

3. In the Mediterranean and the Middle East area the British, together with the South Africans, Australians, New Zealanders, Indian troops and others of the United Nations, including ourselves, are fighting a desperate battle with the Germans and Italians. The Axis powers are fighting to gain control of that area, dominate the Mediterranean and the Indian Ocean, and gain contact with the Japanese Navy. The battle in the Middle East is now joined. We are well aware of our danger, but we are hopeful of the outcome.

4. The European area. Here the aim is an offensive against Germany. There are at least a dozen different points at which attacks can be launched. You, of course, do not expect me to give details of future plans, but you can rest assured that preparations are being made here and in Britain toward this purpose. The power of Germany must be broken on the battlefields of Europe.

Various people urge that we concentrate our forces on one or another of these four areas, although no one suggests that any one of the four areas should be abandoned. Certainly, it could not be seriously urged that we abandon aid to Russia, or that we surrender all of the Pacific to Japan, or the Mediterranean and Middle East to Germany, or give up an offensive against Germany. The American people may be sure that we shall neglect none of the four great theaters of war.

Certain vital military decisions have been made. In due time you will know what these decisions are--and so will our enemies. I can say now that all of these decisions are directed toward taking the offensive.

Today, exactly nine months after Pearl Harbor, we have sent overseas three times more men than we transported to France in the first nine months of the first World War. We have done this in spite of greater danger and fewer ships. And every week sees a gain in the actual number of American men and weapons in the fighting areas. These reinforcements in men and munitions are continuing, and will continue to go forward.

This war will finally be won by the coordination of all the armies, navies and air forces of all of the United Nations operating in unison against our enemies.

This will require vast assemblies of weapons and men at all the vital points of attack. We and our allies have worked for years to achieve superiority in weapons. We have no doubts about the superiority of our men. We glory in the individual exploits of our soldiers, our sailors, our marines, our merchant seamen. Lieutenant John James Powers was one of these--and there are thousands of others in the forces of the United Nations.

Several thousand Americans have met death in battle. Other thousands will lose their lives. But many millions stand ready to step into their places--to engage in a struggle to the very death. For they know that the enemy is determined to destroy us, our homes and our institutions--that in this war it is kill or be killed.

Battles are not won by soldiers or sailors who think first of their own personal safety. And wars are not won by people who are concerned primarily with their own comfort, their own convenience, their own pocketbooks.

We Americans of today bear the gravest of responsibilities. And all of the United Nations share them.

All of us here at home are being tested--for our fortitude, for our selfless devotion to our country and to our cause.

This is the toughest war of all time. We need not leave it to historians of the future to answer the question whether we are tough enough to meet this unprecedented challenge. We can give that answer now. The answer is "Yes."

October 12, 1942.

My Fellow Americans:

As you know, I have recently come back from a trip of inspection of camps and training stations and war factories.

The main thing that I observed on this trip is not exactly news. It is the plain fact that the American people are united as never before in their determination to do a job and to do it well.

This whole nation of 130,000,000 free men, women and children is becoming one great fighting force. Some of us are soldiers or sailors, some of us are civilians. Some of us are fighting the war in airplanes five miles above the continent of Europe or the islands of the Pacific--and some of us are fighting it in mines deep down in the earth of Pennsylvania or Montana. A few of us are decorated with medals for heroic achievement, but all of us can have that deep and permanent inner satisfaction that comes from doing the best we know how--each of us playing an honorable part in the great struggle to save our democratic civilization.

Whatever our individual circumstances or opportunities--we are all in it, and our spirit is good, and we Americans and our allies are going to win--and do not let anyone tell you anything different.

That is the main thing that I saw on my trip around the country-- unbeatable spirit. If the leaders of Germany and Japan could have come along with me, and had seen what I saw, they would agree with my conclusions. Unfortunately, they were unable to make the trip with me. And that is one reason why we are carrying our war effort overseas--to them.

With every passing week the war increases in scope and intensity. That is true in Europe, in Africa, in Asia, and on all the seas.

The strength of the United Nations is on the upgrade in this war. The Axis leaders, on the other hand, know by now that they have already reached their full strength, and that their steadily mounting losses in men and material cannot be fully replaced. Germany and Japan are already realizing what the inevitable result will be when the total strength of the United Nations hits them--at additional places on the earth's surface.

One of the principal weapons of our enemies in the past has been their use of what is called "The War of Nerves." They have spread falsehood and terror; they have started Fifth Columns everywhere; they have duped the innocent; they have fomented suspicion and hate between neighbors; they have aided and abetted those people in other nations--including our own--whose words and deeds are advertised from Berlin and from Tokyo as proof of our disunity.

The greatest defense against all such propaganda, of course, is the common sense of the common people--and that defense is prevailing.

The "War of Nerves" against the United Nations is now turning into a boomerang. For the first time, the Nazi propaganda machine is on the defensive. They begin to apologize to their own people for the repulse of their vast forces at Stalingrad, and for the enormous casualties they are suffering. They are compelled to beg their overworked people to rally their weakened production. They even publicly admit, for the first time, that Germany can be fed only at the cost of stealing food from the rest of Europe.

They are proclaiming that a second front is impossible; but, at the same time, they are desperately rushing troops in all directions, and stringing barbed wire all the way from the coasts of Finland and Norway to the islands of the Eastern Mediterranean.

Meanwhile, they are driven to increase the fury of their atrocities.

The United Nations have decided to establish the identity of those Nazi leaders who are responsible for the innumerable acts of savagery. As each of these criminal deeds is committed, it is being carefully investigated; and the evidence is being relentlessly piled up for the future purposes of justice.

We have made it entirely clear that the United Nations seek no mass reprisals against the populations of Germany or Italy or Japan. But the ring leaders and their brutal henchmen must be named, and apprehended, and tried in accordance with the judicial processes of criminal law.

There are now millions of Americans in army camps, in naval stations, in factories and in shipyards.

Who are these millions upon whom the life of our country depends? What are they thinking? What are their doubts? What are their hopes? And how is the work progressing?

The Commander-in-Chief cannot learn all of the answers to these questions in Washington. And that is why I made the trip I did.

It is very easy to say, as some have said, that when the President travels through the country he should go with a blare of trumpets, with crowds on the sidewalks, with batteries of reporters and photographers--talking and posing with all of the politicians of the land.

But having had some experience in this war and in the last war, I can tell you very simply that the kind of trip I took permitted me to concentrate on the work I had to do without expending time, meeting all the demands of publicity. And--I might add--it was a particular pleasure to make a tour of the country without having to give a single thought to politics.

I expect to make other trips for similar purposes, and I shall make them in the same way.

In the last war, I had seen great factories; but until I saw some of the new present-day plants, I had not thoroughly visualized our American war effort. Of course, I saw only a small portion of all our plants, but that portion was a good cross-section, and it was deeply impressive.

The United States has been at war for only ten months, and is engaged in the enormous task of multiplying its armed forces many times. We are by no means at full production level yet. But I could not help asking myself on the trip, where would we be today if the government of the United States had not begun to build many of its factories for this huge increase more than two years ago, more than a year before war was forced upon us at Pearl Harbor?

We have also had to face the problem of shipping. Ships in every part of the world continue to be sunk by enemy action. But the total tonnage of ships coming out of American, Canadian and British shipyards, day by day, has increased so fast that we are getting ahead of our enemies in the bitter battle of transportation.

In expanding our shipping, we have had to enlist many thousands of men for our Merchant Marine. These men are serving magnificently. They are risking their lives every hour so that guns and tanks and planes and ammunition and food may be carried to the heroic defenders of Stalingrad and to all the United Nations' forces all over the world.

A few days ago I awarded the first Maritime Distinguished Service Medal to a young man--Edward F. Cheney of Yeadon, Pennsylvania--who had shown great gallantry in rescuing his comrades from the oily waters of the sea after their ship had been torpedoed. There will be many more such acts of bravery.

In one sense my recent trip was a hurried one, out through the Middle West, to the Northwest, down the length of the Pacific Coast and back through the Southwest and the South. In another sense, however, it was a leisurely trip, because I had the opportunity to talk to the people who are actually doing the work--management and labor alike--on their own home grounds. And it gave me a fine chance to do some thinking about the major problems of our war effort on the basis of first things first.

As I told the three press association representatives who accompanied me, I was impressed by the large proportion of women employed--doing skilled manual labor running machines. As time goes on, and many more of our men enter the armed forces, this proportion of women will increase. Within less than a year from now, I think, there will probably be as many women as men working in our war production plants.

I had some enlightening experiences relating to the old saying of us men that curiosity--inquisitiveness--is stronger among woman. I noticed, frequently, that when we drove unannounced down the middle aisle of a great plant full of workers and machines, the first people to look up from their work were the men--and not the women. It was chiefly the men who were arguing as to whether that fellow in the straw hat was really the President or not.

So having seen the quality of the work and of the workers on our production lines--and coupling these firsthand observations with the reports of actual performance of our weapons on the fighting fronts--I can say to you that we are getting ahead of our enemies in the battle of production.

And of great importance to our future production was the effective and rapid manner in which the Congress met the serious problem of the rising cost of living. It was a splendid example of the operation of democratic processes in wartime.

The machinery to carry out this act of the Congress was put into effect within twelve hours after the bill was signed. The legislation will help the cost-of-living problems of every worker in every factory and on every farm in the land.

In order to keep stepping up our production, we have had to add millions of workers to the total labor force of the nation. And as new factories came into operation, we must find additional millions of workers.

This presents a formidable problem in the mobilization of manpower.

It is not that we do not have enough people in this country to do the job. The problem is to have the right numbers of the right people in the right places at the right time.

We are learning to ration materials, and we must now learn to ration manpower. The major objectives of a sound manpower policy are:

First, to select and train men of the highest fighting efficiency needed for our armed forces in the achievement of victory over our enemies in combat.

Second, to man our war industries and farms with the workers needed to produce the arms and munitions and food required by ourselves and by our fighting allies to win this war.

In order to do this, we shall be compelled to stop workers from moving from one war job to another as a matter of personal preference; to stop employers from stealing labor from each other; to use older men, and handicapped people, and more women, and even grown boys and girls, wherever possible and reasonable, to replace men of military age and fitness; to train new personnel for essential war work; and to stop the wastage of labor in all non- essential activities.

There are many other things that we can do, and do immediately, to help meet this manpower problem.

The school authorities in all the states should work out plans to enable our high school students to take some time from their school year, and to use their summer vacations, to help farmers raise and harvest their crops, or to work somewhere in the war industries. This does not mean closing schools and stopping education. It does mean giving older students a better opportunity to contribute their bit to the war effort. Such work will do no harm to the students.

People should do their work as near their homes as possible. We cannot afford to transport a single worker into an area where there is already a worker available to do the job.

In some communities, employers dislike to employ women. In others they are reluctant to hire Negroes. In still others, older men are not wanted. We can no longer afford to indulge such prejudices or practices.

Every citizen wants to know what essential war work he can do the best. He can get the answer by applying to the nearest United States Employment Service office. There are four thousand five hundred of these offices throughout the nation. They form the corner grocery stores of our manpower system. This network of employment offices is prepared to advise every citizen where his skills and labors are needed most, and to refer him to an employer who can utilize them to best advantage in the war effort.

Perhaps the most difficult phase of the manpower problem is the scarcity of farm labor in many places. I have seen evidences of the fact, however, that the people are trying to meet it as well as possible.

In one community that I visited a perishable crop was harvested by turning out the whole of the high school for three or four days.