Franklin D. Roosevelt
State of the Union Address
January 3, 1934
Mr. President, Mr. Speaker, Senators and Representatives in Congress:
I come before you at the opening of the Regular Session of the 73d Congress,
not to make requests for special or detailed items of legislation; I come,
rather, to counsel with you, who, like myself, have been selected to carry
out a mandate of the whole people, in order that without partisanship you
and I may cooperate to continue the restoration of our national wellbeing
and, equally important, to build on the ruins of the past a new structure
designed better to meet the present problems of modern civilization.
Such a structure includes not only the relations of industry and agriculture
and finance to each other but also the effect which all of these three
have on our individual citizens and on the whole people as a Nation.
Now that we are definitely in the process of recovery, lines have been
rightly drawn between those to whom this recovery means a return to old
methodsand the number of these people is smalland those for whom recovery
means a reform of many old methods, a permanent readjustment of many of
our ways of thinking and therefore of many of our social and economic arrangements.
. . . .
Civilization cannot go back; civilization must not stand still. We have
undertaken new methods. It is our task to perfect, to improve, to alter
when necessary, but in all cases to go forward. To consolidate what we
are doing, to make our economic and social structure capable of dealing
with modern life is the joint task of the legislative, the judicial, and
the executive branches of the national Government.
Without regard to party, the overwhelming majority of our people seek
a greater opportunity for humanity to prosper and find happiness. They
recognize that human welfare has not increased and does not increase through
mere materialism and luxury, but that it does progress through integrity,
unselfishness, responsibility and justice.
In the past few months, as a result of our action, we have demanded
of many citizens that they surrender certain licenses to do as they please
,in their business relationships; but we have asked this in exchange for
the protection which the State can give against exploitation by their fellow
men or by combinations of their fellow men.
I congratulate this Congress upon the courage, the earnestness and the
efficiency with which you met the crisis at the Special Session.
It was your fine understanding of the national problem that furnished the
example which the country has so splendidly followed. I venture to say
that the task confronting the First Congress of 1789 was no greater than
I shall not attempt to set forth either the many phases of the crisis
which we experienced last March, or the many measures which you and I undertook
during the Special Session that we might initiate recovery and reform.
It is sufficient that I should speak in broad terms of the results of
our common counsel. The credit of the Government has been fortified by
drastic reduction in the cost of its permanent agencies through the Economy
With the twofold purpose of strengthening the whole financial structure
and of arriving eventually at a medium of exchange which over the years
will have less variable purchasing and debt paying power for our people
than that of the past, I have used the authority granted me to purchase
all American-produced gold and silver and to buy additional gold in the
world markets. Careful investigation and constant study prove that in the
matter of foreign exchange rates certain of our sister Nations find themselves
so handicapped by internal and other conditions that they feel unable at
this time to enter into stabilization discussion based on permanent and
The overwhelming majority of the banks, both national and State, which
reopened last spring, are in sound condition and have been brought within
the protection of Federal insurance. In the case of those banks which
were not permitted to reopen, nearly six hundred million dollars of frozen
deposits are being restored to the depositors through the assistance of
the national Government.
We have made great strides toward the objectives of the National Industrial
Recovery Act, for not only have several millions of our unemployed been
restored to work, but industry is organizing itself with a greater understanding
that reasonable profits can be earned while at the same time protection
can be assured to guarantee to labor adequate pay and proper conditions
of work. Child labor is abolished. Uniform standards of hours and wages
apply today to 95 percent of industrial employment within the field of
the National Industrial Recovery Act. We seek the definite end of preventing
combinations in furtherance of monopoly and in restraint of trade, while
at the same time we seek to prevent ruinous rivalries within industrial
groups which in many cases resemble the gang wars of the underworld and
in which the real victim in every case is the public itself.
Under the authority of this Congress, we have brought the component
parts of each industry together around a common table, just as we have
brought problems affecting labor to a common meeting ground. Though the
machinery, hurriedly devised, may need readjustment from time to time,
nevertheless I think you will agree with me that we have created a permanent
feature of our modernized industrial structure and that it will continue
under the supervision but not the arbitrary dictation of Government itself.
You recognized last spring that the most serious part of the debt burden
affected those who stood in danger of losing their farms and their homes.
I am glad to tell you that refinancing in both of these cases is proceeding
with good success and in all probability within the financial limits set
by the Congress.
But agriculture had suffered from more than its debts. Actual experience
with the operation of the Agricultural Adjustment Act leads to my belief
that thus far the experiment of seeking a balance between production and
consumption is succeeding and has made progress entirely in line with reasonable
expectations toward the restoration of farm prices to parity. I continue
in my conviction that industrial progress and prosperity can only be attained
by bringing the purchasing power of that portion of our population which
in one form or another is dependent upon agriculture up to a level which
will restore a proper balance between every section of the country and
between every form of work.
In this field, through carefully planned flood control, power development
and land-use policies in the Tennessee Valley and in other, great watersheds,
we are seeking the elimination of waste, the removal of poor lands from
agriculture and the encouragement of small local industries, thus furthering
this principle of a better balanced national life. We recognize the great
ultimate cost of the application of this rounded policy to every part off
the Union. Today we are creating heavy obligations to start the work because
of the great unemployment needs of the moment. I look forward, however,
to the time in the not distant future, when annual appropriations, wholly
covered by current revenue, will enable the work to proceed under a national
plan. Such a national plan will, in a generation or two, return many times
the money spent on it; more important, it will eliminate the use of inefficient
tools, conserve and increase natural resources, prevent waste, and enable
millions of our people to take better advantage of the opportunities which
God has given our country.
I cannot, unfortunately, present to you a picture of complete optimism
regarding world affairs.
The delegation representing the United States has worked in close cooperation
with the other American Republics assembled at Montevideo to make that
conference an outstanding success. We have, I hope, made it clear to our
neighbors that we seek with them future avoidance of territorial expansion
and of interference by one Nation in the internal affairs of another. Furthermore,
all of us are seeking the restoration of commerce in ways which will preclude
the building up of large favorable trade balances by any one Nation at
the expense of trade debits on the part of other Nations.
In other parts of the world, however, fear of immediate or future aggression
and with it the spending of vast sums on armament and the continued building
up of defensive trade barriers prevent any great progress in peace or trade
agreements. I have made it clear that the United States cannot take part
in political arrangements in Europe but that we stand ready to cooperate
at any time in practicable measures on a world basis looking to immediate
reduction of armaments and the lowering of the barriers against commerce.
I expect to report to you later in regard to debts owed the Government
and people of this country by the Governments and peoples of other countries.
Several Nations, acknowledging the debt, have paid in small part; other
Nations have failed to pay. One NationFinlandhas paid the installments
due this country in full.
Returning to home problems, we have been shocked by many notorious examples
of injuries done our citizens by persons or groups who have been living
of[ their neighbors by the use of methods either unethical or criminal.
In the first categorya field which does not involve violations :of
the letter of our lawspractices have been brought to light which have
shocked those who believed that we were in the past generation raising
the ethical standards of business. They call for stringent preventive or
regulatory measures. I am speaking of those individuals who have evaded
the spirit and purpose of our tax laws, of those high officials of banks
or corporations who have grown rich at the expense of their stockholders
or the public, of those reckless speculators with their own or other people's
money whose operations. have injured the values of the farmers' crops and
the savings of the poor.
In the other category, crimes of organized banditry, coldblooded shooting,
lynching and kidnapping have threatened our security.
These violations of ethics and these violations of law call on the strong
arm of Government for their immediate suppression; they call also on the
country for an aroused public opinion.
The adoption of the Twenty-first Amendment should give material aid
to the elimination of those new forms of crime which came from the illegal
traffic in liquor.
I shall continue to regard it as my duty to use whatever means may be
necessary to supplement State, local and private agencies for the relief
of suffering caused by unemployment. With respect to this question, I have
recognized the dangers inherent in the direct giving of relief and have
sought the means to provide not mere relief, but the opportunity for useful
and remunerative work. We shall, in the process of recovery, seek to move
as rapidly as possible from direct relief to publicly supported work and
from that to the rapid restoration of private employment.
It is to the eternal credit of the American people that this tremendous
readjustment of our national life is being accomplished peacefully, without
serious dislocation, with only a minimum of injustice and with a great,
willing spirit of cooperation throughout the country.
Disorder is not an American habit. Self-help and self-control are the
essence of the American traditionnot of necessity the form of that tradition,
but its spirit. The program itself comes from the American people.
It is an integrated program, national in scope. Viewed in the large,
it is designed to save from destruction and to keep for the future the
genuinely important values created by modern society. The vicious and wasteful
parts of that society we could not save if we wished; they have chosen
the way of self-destruction. We would save useful mechanical invention,
machine production, industrial efficiency, modern means of communication,
broad education. We would save and encourage the slowly growing impulse
among consumers to enter the industrial market place equipped with sufficient
organization to insist upon fair prices and honest sales.
But the unnecessary expansion of industrial plants, the waste' of natural
resources, the exploitation of the consumers of natural monopolies, the
accumulation of stagnant surpluses, child labor, and the ruthless exploitation
of all labor, the encouragement of speculation with other people's money,
these were consumed in the fires that they themselves kindled; we must
make sure that as we reconstruct our life there be no soil in which such
weeds can grow again.
We have plowed the furrow and planted the good seed; the hard beginning
is over. If we would reap the full harvest, we must cultivate the soil
where this good seed is sprouting and the plant is reaching up to mature
A final personal word. I know that each of you will appreciate that.
I am speaking no mere politeness when I assure you how much I value the
fine relationship that we have shared during these months of hard and incessant
work. Out of these friendly contacts we are, fortunately, building a strong
and permanent tie between the legislative and executive branches of the
Government. The letter of the Constitution wisely declared a separation,
but the impulse of common purpose declares a union. In this spirit we join
once more in serving the American people.