Herbert Hoover: Against the Proposed New Deal

▪ Primary Source

      President Hoover attributed the Depression to forces that bore on the United States from without, not to weaknesses in the American system itself. He had originally intended to conduct a limited campaign for reelection; but as Roosevelt's intentions to alter the economic system became increasingly apparent, he was stirred to political battle. Hoover was constantly on the defensive during the campaign, celebrating the virtues of individualism and voluntary cooperation while charging that Roosevelt's promised New Deal was based on "the same philosophy of government which has poisoned all Europe." Hoover's speech at Madison Square Garden in New York City on October 31, 1932, is reprinted here in part. Like all of his speeches, it was written by Hoover himself.

      This campaign is more than a contest between two men. It is more than a contest between two parties. It is a contest between two philosophies of government.

      We are told by the opposition that we must have a change, that we must have a new deal. It is not the change that comes from normal development of national life to which I object but the proposal to alter the whole foundations of our national life which have been builded through generations of testing and struggle, and of the principles upon which we have builded the nation. The expressions our opponents use must refer to important changes in our economic and social system and our system of government, otherwise they are nothing but vacuous words. And I realize that in this time of distress many of our people are asking whether our social and economic system is incapable of that great primary function of providing security and comfort of life to all of the firesides of our 25 million homes in America, whether our social system provides for the fundamental development and progress of our people, whether our form of government is capable of originating and sustaining that security and progress.

      This question is the basis upon which our opponents are appealing to the people in their fears and distress. They are proposing changes and so-called new deals which would destroy the very foundations of our American system.

      Our people should consider the primary facts before they come to the judgment—not merely through political agitation, the glitter of promise, and the discouragement of temporary hardships—whether they will support changes which radically affect the whole system which has been builded up by 150 years of the toil of our fathers. They should not approach the question in the despair with which our opponents would clothe it.

      Our economic system has received abnormal shocks during the past three years, which temporarily dislocated its normal functioning. These shocks have in a large sense come from without our borders, but I say to you that our system of government has enabled us to take such strong action as to prevent the disaster which would otherwise have come to our nation. It has enabled us further to develop measures and programs which are now demonstrating their ability to bring about restoration and progress.

      We must go deeper than platitudes and emotional appeals of the public platform in the campaign if we will penetrate to the full significance of the changes which our opponents are attempting to float upon the wave of distress and discontent from the difficulties we are passing through. We can find what our opponents would do after searching the record of their appeals to discontent, group and sectional interest. We must search for them in the legislative acts which they sponsored and passed in the Democratic-controlled House of Representatives in the last session of Congress. We must look into measures for which they voted and which were defeated. We must inquire whether or not the presidential and vice-presidential candidates have disavowed these acts. If they have not, we must conclude that they form a portion and are a substantial indication of the profound changes proposed.

      And we must look still further than this as to what revolutionary changes have been proposed by the candidates themselves.

      We must look into the type of leaders who are campaigning for the Democratic ticket, whose philosophies have been well known all their lives, whose demands for a change in the American system are frank and forceful. I can respect the sincerity of these men in their desire to change our form of government and our social and economic system, though I shall do my best tonight to prove they are wrong. I refer particularly to Senator Norris, Senator La Follette, Senator Cutting, Senator Huey Long, Senator Wheeler, William R. Hearst, and other exponents of a social philosophy different from the traditional American one. Unless these men feel assurance of support to their ideas, they certainly would not be supporting these candidates and the Democratic Party. The seal of these men indicates that they have sure confidence that they will have voice in the administration of our government.

      I may say at once that the changes proposed from all these Democratic principals and allies are of the most profound and penetrating character. If they are brought about, this will not be the America which we have known in the past.

      Let us pause for a moment and examine the American system of government, of social and economic life, which it is now proposed that we should alter. Our system is the product of our race and of our experience in building a nation to heights unparalleled in the whole history of the world. It is a system peculiar to the American people. It differs essentially from all others in the world. It is an American system.

      It is founded on the conception that only through ordered liberty, through freedom to the individual, and equal opportunity to the individual will his initiative and enterprise be summoned to spur the march of progress.

      It is by the maintenance of equality of opportunity and therefore of a society absolutely fluid in freedom of the movement of its human particles that our individualism departs from the individualism of Europe. We resent class distinction because there can be no rise for the individual through the frozen strata of classes, and no stratification of classes can take place in a mass livened by the free rise of its particles. Thus in our ideals the able and ambitious are able to rise constantly from the bottom to leadership in the community.

      This freedom of the individual creates of itself the necessity and the cheerful willingness of men to act cooperatively in a thousand ways and for every purpose as occasion arises; and it permits such voluntary cooperations to be dissolved as soon as they have served their purpose, to be replaced by new voluntary associations for new purposes.

      There has thus grown within us, to gigantic importance, a new conception. That is, this voluntary cooperation within the community. Cooperation to perfect the social organization; cooperation for the care of those in distress; cooperation for the advancement of knowledge, of scientific research, of education; for cooperative action in the advancement of many phases of economic life. This is self-government by the people outside of government; it is the most powerful development of individual freedom and equal opportunity that has taken place in the century and a half since our fundamental institutions were founded.

      It is in the further development of this cooperation and a sense of its responsibility that we should find solution for many of our complex problems, and not by the extension of government into our economic and social life. The greatest function of government is to build up that cooperation, and its most resolute action should be to deny the extension of bureaucracy. We have developed great agencies of cooperation by the assistance of the government which promote and protect the interests of individuals and the smaller units of business. The Federal Reserve System, in its strengthening and support of the smaller banks; the Farm Board, in its strengthening and support of the farm cooperatives; the Home Loan Banks, in the mobilizing of building and loan associations and savings banks; the Federal Land Banks, in giving independence and strength to land mortgage associations; the great mobilization of relief to distress, the mobilization of business and industry in measures of recovery, and a score of other activities are not socialism—they are the essence of protection to the development of free men.

      The primary conception of this whole American system is not the regimentation of men but the cooperation of free men. It is founded upon the conception of responsibility of the individual to the community, of the responsibility of local government to the state, of the state to the national government.

      It is founded on a peculiar conception of self-government designed to maintain this equal opportunity to the individual, and through decentralization it brings about and maintains these responsibilities. The centralization of government will undermine responsibilities and will destroy the system.

      Our government differs from all previous conceptions, not only in this decentralization but also in the separation of functions between the legislative, executive, and judicial arms of government, in which the independence of the judicial arm is the keystone of the whole structure.

      It is founded on a conception that in times of emergency, when forces are running beyond control of individuals or other cooperative action, beyond the control of local communities and of states, then the great reserve powers of the federal government shall be brought into action to protect the community. But when these forces have ceased, there must be a return of state, local, and individual responsibility.

      The implacable march of scientific discovery with its train of new inventions presents every year new problems to government and new problems to the social order. Questions often arise whether, in the face of the growth of these new and gigantic tools, democracy can remain master in its own house, can preserve the fundamentals of our American system. I contend that it can; and I contend that this American system of ours has demonstrated its validity and superiority over any other system yet invented by human mind.

      It has demonstrated it in the face of the greatest test of our history—that is the emergency which we have faced in the past three years.

      When the political and economic weakness of many nations of Europe, the result of the World War and its aftermath, finally culminated in collapse of their institutions, the delicate adjustment of our economic and social life received a shock unparalleled in our history. No one knows that better than you of New York. No one knows its causes better than you. That the crisis was so great that many of the leading banks sought directly or indirectly to convert their assets into gold or its equivalent with the result that they practically ceased to function as credit institutions; that many of our citizens sought flight for their capital to other countries; that many of them attempted to hoard gold in large amounts. These were but indications of the flight of confidence and of the belief that our government could not overcome these forces.

      Yet these forces were overcome—perhaps by narrow margins—and this action demonstrates what the courage of a nation can accomplish under the resolute leadership in the Republican Party. And I say the Republican Party, because our opponents, before and during the crisis, proposed no constructive program; though some of their members patriotically supported ours. Later on the Democratic House of Representatives did develop the real thought and ideas of the Democratic Party, but it was so destructive that it had to be defeated, for it would have destroyed, not healed.

      In spite of all these obstructions, we did succeed. Our form of government did prove itself equal to the task. We saved this nation from a quarter of a century of chaos and degeneration, and we preserved the savings, the insurance policies, gave a fighting chance to men to hold their homes. We saved the integrity of our government and the honesty of the American dollar. And we installed measures which today are bringing back recovery. Employment, agriculture, business—all of these show the steady, if slow, healing of our enormous wound.

      I therefore contend that the problem of today is to continue these measures and policies to restore this American system to its normal functioning, to repair the wounds it has received, to correct the weaknesses and evils which would defeat that system. To enter upon a series of deep changes, to embark upon this inchoate new deal which has been propounded in this campaign, would be to undermine and destroy our American system.

Source: The State Papers and Other Public Writings of Herbert Hoover, vol. 2, William S. Myers, ed., 1934, pp. 408-413.

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