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Speech of
J OUETT SHOUSE
i President, American Liberty League,
Before the Philadelphia County
League of Women Voters,
f February 4, 1935
} AMERICAN LIBERTY LEAGUE
National Headquarters
NATIONAL PRESS BUILDING
WASHINGTON, D. C.
at *
4 Document No. 14

 Democracy or Bureaucracy
*
'].T{E principles of the League of Women
Voters and the principles of the American
Liberty League are closely akin. Both be-
1 lieve in a sound government. Both believe in `
W political progress, in social progress and in
s economic progress. Both believe in the educa-
tion of the voters. Both believe that intelligent
; analysis of any problem is the most helpful step
E toward its solution. The League of Women
  Voters was organized essentially to educate the
  women of the country in the science of govern-
Q ment following their nation-wide enfranchise-
E ment. The American Liberty League originated
1 because of the belief that it would be a helpful
  thing to have at Washington a non-partisan or-
‘ ganization to watch and analyze legislation and
to inform the country if there should seem seri-
A ous threat to undermine either the liberties of
 :4 S our citizens or the stable form of government
1 upon which our Nation was founded and under
  which it has developed.
  In many lands and among many peoples the
I world-wide depression following the great War
i has caused revolution and overthrow of consti-
4 tuted authority. Dictatorships have been en- r
. throned and despotism has despoiled the people
  alike of their liberties and of their property.
  In our own country there have been complaints
  of the accepted standards, impatience with re-
straints and a disposition, at least in some quar-
ters, to attempt experimentation and change
without reference to the ultimate consequences
  and without consideration of the loss of human
I rights that might result.
Constitution {he American Liberty
eague was not organized
Adequate for the to attempt to defeat any
· N3ti0I1’S Needs political group nor was it
. formed either to oppose
si or to support any particular individual. Its
f 3
i
  -

 5
primary purpose is to show that the Constitu-   that the best intentioned efforts may result in
tion is adequate to meet any need that now con-   disaster, then it is the plain duty of the citizen
fronts us, just as it has met the needs of the i to voice his dissent and to point out the danger.
past, and to emphasize that only through provi- J Nor is the individual or the group of individuals
sions of the Constitution are we protected in T who follow that course correctly subject to the
those personal rights which are the richest herit-   charge that the attempt is mere obstruction. On
age of liberty. To that task it is dedicated.   the contrary, the most helpful service that can
For that purpose, and that alone, it will strive . be rendered is constructive criticism.
to serve. 4
- I am sure it is not necessary in this presence ° What the it is iii that sPii`it that
to emphasize the need of careful watchfulness.   League t n e Anietieeii i·ibei`tY
The old saying, "Eternal vigilance is the price is Doing iieegue is ettemPtiiig to
of liberty,” has not lost its appeal. Its truth is i i ii i o i` m the American
moto annaront todav than in many voars Past   people as to some of the matters of pending
because, in an entirely admirable desire to im- I leglelelleln Fel leur sneeessive weeks it has
nrovo oonditionss Steps havo hoon takon and ara   made public careful analyses of matters of major
hoing takon which throaton tho division of   importance. The first of these dealt with the
nowors among the Exoontivoa Logislativo and   President’s budget message, the second with the
Jndioial Branohos as nrovidod hv our Consti_   National Recovery Administration, the third
tution, which undermine the dual form of Fed-   Wlln ine _Elnel`§eneY Reiieii APPi'oPi'ietio¤ iii
eral and State Governments and which strike   the liellll ln wnlen it Passed the House vn Jem
at some of the most important safeguards of the § nary zilln and ine iioiii`tii¤ wiiieii Wee given out _
individual oitizon gnatantood hv tho Bill of   today, attempts to analyze the intricate and vast
Rights { Social Security Program upon which the Presi-
May I say hom that I havo not tho shohtost   dent sent recently a special message to the Con-
disposition to criticize the motives of the Presi- _ erase and the Prevlelens of wnien ere embodied
dent of the United States. On the contrary, I Q lll leglslallen new Pending before the two
nav trihnto to hnn for the oonraoot tho industry f Houses. Each of these documents has been es-
and the persistence with which he has attacked g Scntlally a factual el“ilY and eeen iies been the
tho manv and variod nrohloms oonfrontino, his g only study of its kind thus far placed before the
adnnniStt.ation_ No man ovor novo himsolf   public. Each has attracted widespread atten- .
more whole-heartedly to his people and there is 3 uml and llallenal Pul’lleilY· TiieY Wiii be ioi·
none who could wish more earnestly than he l?W°d_by ether similar documents from time to
for a return to conditions of prosperity. In- tsme lll the llepe el ellieliling useful iiitoi`me·
doodt thoro is no othor to whom snob rotnrn is t tion and assisting the Congress in the writing
so vital, because upon him devolves the terrific   °f plllpeli legislation TneY are entii`eiY  relieving eeeeemie meledieei-
the preservation of our constitutional govern- ' mentsv (3) alleviating distress, and/er (4) 1m'
ment. That measure, in the form of a Jt-that t peering livies end Werkies ee¤b·=di<=¤¢¤ *0 his revolutionary, the most unjustified and the most
order is made a crime punishable by fine and . i . .
imprisonmcmf, unwise attempt at absolute delegation of legisla-
tive authority to the Executive that we have ever
The Cmnt further Bald: witnessed in the history of this country. And,
“The Congress left the matter to the President furthermore, in my opinion, if it passes and
without”standard or rule, to be dealt with as he goes unchallenged in the Courts, it is a certain
pleasei indication of the disintegration of the form of
And the Cgurt made the fellewjng ]engthy Ob. government under which we have lived and in
ggrvatiou on the genera] Subject: i   WC IIBVC pI°OfCSSCd to believe. TI16 issue
an Section 9 (C) were held valid, it would be involved is whether Democracy shall continue
idle to pretend that anything would be left of le held Sway iii this Rspublic Oli Whether Bil'
limitations upon the power of the Congress to reaucracy will take its place.
delegate its law-making function. The reasoning of 5
the many decisions we have reviewed would be i _ The President has re. T
made vacuous and· their distinctions nugatory. In- 500131 cantly Presented to the
stead of performing. its law-making function the   Security C n r S f
Congress could at w1ll and as to such subjects as ~~ 0_g c S a program or
A it chooses tranfer that function to the President or I Program Social Se°lli`itY• The e°ii'
other officer or to administrative body. The ques- templated legislation in-
tion is not of the intrinsic importance of the par- eludes unemployment inguyangg, Old age benefits,
ticular statute before us, but of the constitutional aid for dependent children through mothcrsv
processes of legislation which are an essential part . .
of our System of government-., pensions and an expanded program of publ1c
health activities. In my opinion the objectives
It seems reasonable to presume that on the sought will command the respect and the favor
basis of this recent decision of the Supreme. of a large majority of our citizens. Particularly _
l2 i 13 {

 at this time does the idea of unemployment in- Liberty League and I confess that it is extremely
surance have a popular appeal. The plight of difficult for me to comprehend, both in its pro-
the man who is ready and able to work but who visions and in its implications. Any one of the
cannot {ind a job wins sympathetic considera- four major features involved presents as much
tion at the hands of his fellow men and at the legislation as the average member of Congress
hands of his government. Quite aside from the is able to digest at any particular time and,
humanitarian aspect it is highly desirable from N therefore, the thought that the present com-
the standpoint of our national welfare that a `A prehensive bill should be split up into its logical
system shall be devised to insure some compen- component parts.
sation in periods of depression where men are __ There are two essential tests which must be
temporarily deprived of their ordinary means L applied to all features of this security program,
of livelihood. This particular problem, how- whether it is enacted in one bill or in several
BVCI`, as Well 85 the 0'€h€1‘S S11gg6St6d by thi? bills. First, the system set up must take due
President’s program, must be solved through account of our dual form of government. The
cooperation between the Federal and State gov- rights and the privileges of States must not be
ernments, and that is the plan which is at pres- impaired. Devotion to the praiseworthy objec-
ent in contemplation. tives must not be used as an excuse for establish-
Likewise as to old age benefits, there is ing another huge Federal bureaucracy which
general approval of the objective although shall attempt to dictate the most intimate de-
there may be considerable disagreement as to tails of private business. In other words, social
the most intelligent method of achieving that security legislation must be enacted with due
objective. regard to the provisions of the Federal Con-
In the bill which has been presented to the stitution.
Congress all features of the security program _ _ —
are combined in one huge legislative enactment. Prcsidentss Thc S°°fmd_ma-l°r mst to
There is serious question of the wisdom of Warning be aI’Ph€d {S fbst Of €°°'
trying to solve these diverse problems in a single _ Immm f‘?aS1b1htY‘ Only
omnibus bill. However appealing the need may Pralscd harm W111 be dfmc to
be, we must remember that this is not emer- _ _ th')?8 whom _w° $661* t°
gency legislation. It is a prgpggal, gr Perhaps bcneat if th1’011gh 1ll·cons1dered action wo mko
more actually a group Of proposals, to make steps beyond the capacity of•our national Treas- ~
fm__I_€aching and permanent changes in the · 1 ury and 1njur1ous to our nat1onal credit. I com- y
economic system of the country. Alteration of “` mcnfl mgmt heartily that P““‘%f`“Ph °f the
the most complicated and delicate relationships z President S message m which he Bald:
is involved. It is merely good sense to suggest __ L "It is overwhelmingly important to avoid any
that when Congress Sacks to lcgislatc on Such t danger of permanently discrediting the sound and
subjects it should make sure that it proceeds   ; °;:;;n‘;i5$d;m;p;’1§S§?t;;“ ;°0" ;’;‘;;;‘:;
wlth full kflowlcdgc and undcrstandlng of all a scale before actual bexperience has provided guid- V
the factors 1HV01V€d· ance for the permanently safe direction of such
No more intricate piece of legislation has eiforts.”
been introduced than that which now impends. Th P ,d , _ _ _ _
I have gone over the bill repeatedly with mem- C mm cm S Glyn c0mm1SS1°I{’ m us rcpmt
bers of the research staff of the American to the Congress whlch accompamcd the Pmsi"
14 15

 dent’s message, called attention to the fact that of determining and disclosing potential enemies of
‘ · ' • • 99
1n the matter of old age benefits actuarial esti- um N"‘“°“ h°'° ‘”` "‘b"°‘°‘d‘
t h'ttdt’thdh h '- . . . .
Ezaiinsubllgdci uoc; th; F; C; ::1 Slzzcrzlgnggt You w1ll observe that this resolution, by 111-
g P . g . . ference at least, designates creditors of our gov-
as to create an almost intolerable drain 1n the ernment as n Otcmial enemies of this Nation ,,
course of forty-five years. Therefore this com- Wh are th;) creditors of the g0vcmmcn£?
" dthtfth tdhldb °    
mlssmxi urge a a ur Br S u Y S Ou 6 F They are the 1nd1v1duals and the institutions
made 1n order to work out a program that . . .
. . . . which hold government securities.
would avoid excessive or perhaps 1mposs1ble The Outgtandin Ohh ations of the Ovcm
expenditure. ln such circumstances it is the in g g . .  
. . . ~ ment are now close to twenty-nine billions of
plain duty of the Congress to we1gh with the dollars Somethin like 60 cr Cem of this
utmost care each feature of this proposed legis- amouni is held b g the bank;) of the couutr
lation and not be swept off its feet by the plea Just what docs th;} mean., The banks bougge
’ that the le islat' h ld b d ' - . . ° . ·
d. . g mn S Ou 6 passe lmmc these government securities Wlth the money of
iately in order that necessary State laws shall their dc Osimrs The hold these Securities
be at once enacted by sitting legislatures. . P . . I . . Y . .
. against their l1ab1l1ty to their depositors. For
When carefully considered measures have come . . .
from the Federal Con mss there will be n all practical purposes the securities belong to
0 . . . .
dimculty in Bccuriu guch extra Bcssi ns f the depos1tors. According to the latest available
o o . . . . . .
State legislatures as iléy bc rc uircd to enact stat1st1cs there are more than thtrty-s1x m1ll1on
Proper State laws q savings bank depositors in the United States, in
l addition to the millions of commercial de-
Thcrc was held in Wash positors. According to this resolution of the
"P0t€11t1&l ingmn on January 16th a National Monetary Conference every one of
Enemies of meeting called 8 National these millions is a “potential enemy.”
h N · as Then there are those who have insurance `
t 6 ation Monetary Conference. It . . .
ado ted a Sat of msolu policies and those who are protected by insur-
. . . P . . ance policies. The World Almanac states that
t1ons 1n which, among other thmgs, It demanded h d f 1933 h , 1
that the d h F dl at t e en o t ere were approximate y e
government estroy t e present e . . . . . .
eie1 Reserve s stem end that it issue set eee th‘"Y't"’° "“H‘°“ °‘"d"‘°"Y mc “‘S“”“°"
mm: to meet i; onli ations policies in force and over eighty-one million ‘
I Zan articular agtcmimn to one ara a h industrial policies——·a total of one hundred and
of the msfglutions which mad as f0Hm;_ gr P “"T thirteen million policies all told. Thus an over-
` whelming proportion of the people of the
A ··Tnet fe,. the guidance ef Cengreee in n fuller _ United States are directly concerned with in-
, understanding of the present low prices of agri- "” Surancc policies and the benefits accruing
3 cultural commodities there be referred to the proper theyefy0m_
L committee of •Congress Fand accompanied by a Au insurance company docs not keep your
proper appropr1at10n a mandate to mvestigate the . h Th h
t identity of holders of the outstanding obligations money OF my m?ncy ln fias ' 6 money t _at
i of the United States as of January l, 1935, and of wc PaY In Prcmlums 18 Invested and every In"
the real owners as distinguished from the nominal surance company is a large holder of govern-
holders, together with the- names and identities of ment securities. III eH`ect, therefore, those who
all who have become creditors of the •UD1tBd States Own policies 01, those who will hermit from
Government smce January 1, 1935, with the object
l
16 7

  · P
policies are the owners of government securities. Th Llb . , Before I . eieee may I
They number a vast majority of the people of e l ierty » A V tcl]; you e little mere
the country, and under the resolution of the League S ~ eheut the American Lih_
N8tl0H8l MOHCt8Iy COI1fCI'C11CC they HIC “p0t€D' PriI1Cip1€S gyty Lgagug and the pur.
tial enemies.i” I f t poses for which it stands.
But the list isunot Yet oolnPlete· Mest et eut A short time ago it issued a ten-point platform
nosPltals¤ t selentlee teutteettette eettegee and t representing its basic beliefs. I should like
univcrsitieet n1¤nYt of our cnurclles and ether today to elaborate somewhat upon that platform
institutions deVoted to Punllc ser"lee¤ have tu` and to give you my conception of the aims and
vested theirfunds in government securities. So t purposes Oi- the League; L
  tnels-ante tettett they must be classiscd as First, it was organized as atliberal, construc-
"`potcutial eneiniesdl _ tive body to do its part in the attempt to solve
_Within;ttne week the Unlted States Treasury our national problemsQ It will assert itself to
nas asked. tlle Cengtess to vsfmit tt te issue the uttermost in the effort to bring about busi?
some eleven billions of additional government heee teeevetv, reduce tmeihpievmeht and im;
nonds· It ls Ptepesed that tt eettstdetetlle petit prove the living conditions of the average man.
of these will be of small denominations, as low It will tty in every Wav te aid in teetetiiie tthé
as $25.00, Se as to lnduce tne masses of the confidence of the people in themselves, in each
peeple of the ccuutry to buy secutltles et their other, in American institutions and in their
government just as they were asked to do during gevemmeht_ ` V
the War. By thc Standards set uP by tlle Na' The League believes that our Federal Con-
tional M0netarY Conterenoes eaen one et us stitution is a practical and efficient charter of
who 1‘eSP0nds to this aPPeal to make dlteet both individual liberty and prosperity; that its
Purenase not I tnese Securities will become tt provisions are a safeguard to the people in time
“Potentlal enenlY” and Should be investigated of adversity as well as in time or prosperity.
by a committee of the Congress because we have - The League holds that under the Pievieieiie
faith in the s0lVenoY and securltY sf ent get"   of our Constitution this country has witnessed
crnmient and are willing to loan our nleney te   a general diffusion of wealth unparalleled in
it at a time when its burdens are so heavy and the history of the world, has grown to greaté
· the demands nPon lt so great- ness, has absorbed millions of people of alien
Thetr