On “The Farmer and the Nation,” Part 2

As President Coolidge stood before the thousands of lobbyists, farmers, ranchers and agricultural professionals gathered in Chicago, it was becoming increasingly evident that this was not what they wanted to hear. The President was answering their plea to Washington for special help with a firm “no.” Moreover, Coolidge was about to launch into a wealth of statistical data in order to counter the central assumption that government had to act to meet emergency conditions. No emergency existed. Coolidge knew that crises were notoriously disastrous environments to properly and carefully consider drastic legislation, whether it be for farmers, veterans or anyone else. Contrived calamities advance the interests of bureaucrats and lobbyists not the welfare of all the people.

American farmers were experiencing real improvement after the low point of 1921. General trends since 1900 were slowly, but surely, beginning to reach farm prices. Neither the Congress nor his Administration could accelerate that process so that market demand could be supplied to compensate for overproduction. Coolidge was not blindly proclaiming a return of pre-war levels of prosperity either. Such levels were beyond anyone’s reach now. The market furnished the only true value of what farmers had hastily overproduced. No partnership of government and corporate entities could neatly raise the value of one product to keep returns high and costs low, especially when the markets knew otherwise. Advocates of a government rescue seemed to feel that America was still stuck in 1921 and it was the responsibility of government and business to remove the consequences of poor decision-making on the part of farmers. Farming was hard enough, they claimed. It was for no lack of sympathy nor a denial of reality that Coolidge stuck to his guns and refused to succumb to the pressure that “crisis” compelled another unnecessary raid on the Public Treasury.

Former President at his Vermont family farm. He and his horse are ready to put the hay baler to work, July 1931.

Former President at his Vermont family farm. He and his horse are ready to put the hay baler to work, July 1931.

The advocates of government relief did not want to be bothered with the facts, though. This did not deter Coolidge from affirming what trends actually revealed: while rural populations were decreasing, production was going up. In fact, production had grown fifteen percent since 1910, a remarkable reality given that the economy had experienced four years of war, an economic depression and witnessed the move from a rural to predominantly urban population. “Fewer people but more production means each person on the farm will receive more.”

Production was but one part of the equation, Coolidge went on to say. Prices were at the heart of the controversy. However, prices were also going back up. No, they were not yet to where they had been before the war. Nothing, for that matter, was at it had been. When compared over a quarter of a century, though, what farmers were making had more than tripled to over $12 billion what sold for $3.5 billion in 1900. Farmers had seen a 350% increase in just two decades! Of course, commodities all across the spectrum had increased in value and the decline of 1921 hit hard, but purchasing power had exceeded even those hits to its worth. Agriculture was not in crisis. Depressed areas could be found, just as debt and taxes continued to burden farmers as well. President Coolidge, who knew directly what it was to struggle on the farm, reminded his audience that these were indicators not of permanent decline but demonstrated that agriculture was improving.

Coolidge sharpening a scythe in order to cut his grass.

Coolidge sharpening a scythe in order to cut his grass.

What medicine to administer depended on the condition of the patient. Farming was neither on a deathbed nor stricken in a sick room. Agriculture was rallying back toward full health. It was not there yet but the treatment, if given by government, would prove worse than the cure, Coolidge maintained. Even were the medicine coated in the garb of corporate partnership with government, experience taught President Coolidge how “dangerous” and destructive it would be to the freedom of the market. “No matter how it is disguised, the moment the Government engages in buying and selling, by that act it is fixing prices. Moreover, it would apparently destroy cooperative associations and all other market machinery, for no one can compete with the Government. Ultimately it would end the independence which the farmers of this country enjoy as a result of centuries of struggle and prevent the exercise of their own judgment and control in cultivating their land and marketing their produce.”

The President knew that however rationalized the government’s “alternative choice” is advertised, the result is always a removal of competition and establishment of one, sole provider — the Federal Government, forcing Americans to pay whatever it decides, however high or artificial a price. The costs are not merely economic ones, either. “Government control can not be divorced from political control.” The project may start innocently enough by insulating producers from low prices and bolstering superficially high values on what is sold. The agricultural policies of other nations, Coolidge pointed out, reveal that price fixing, once entrusted to government, cuts both ways. One of Europe’s great nations had already capped the price of farm labor far below what it was worth. America, were it to set out on that same course, would soon find that a government empowered to give can also take away.

Coolidge also understood that no government has the ability, even with “the best and the brightest,” to surgically adjust one price without seriously influencing all the other costs and components simultaneously operating in the market. The only way to prevent this ripple effect invariably led to the wholesale takeover of the economy by government. American agriculture would no longer be American. Government could not manage one small piece without assuming management of it all to ensure desired results for any length of time. “Unless we fix corresponding prices for other commodities, a high fixed price for agriculture would simply stimulate overproduction that would end in complete collapse.” Farmers realized, Coolidge asserted, “that even the United States Government is not strong enough, either directly or indirectly, to fix prices which would constantly guarantee success. They are opposed to submitting themselves to the control of a great Government bureaucracy. They prefer the sound policy of maintaining their freedom and their initiative as individuals, or to limit them only as they voluntarily form group associations. They do not wish to put the Government into the farming business.”

Coolidge working a scythe on one of his fields in Plymouth.

Coolidge working that scythe on one of his fields in Plymouth.

If Government price fixing was not the answer, what other option would address the farmer’s plight? The President turned to a discussion of tariff policy. Coolidge delved not into emotional rhetoric, anecdotal evidence or political pandering to accentuate the unfair deal foisted on the farmer. Instead, he cited the figures and invited everyone to “fact-check” him. If it was discovered that the tariff carried a disproportionate burden on agriculture, it needed to change.

If, however, upon examining the numbers, farmers obtained a high wall of protection from the costs of imported goods, the argument to change fell flat indeed. The facts confirmed that 88 percent of imported goods enter the country free of duty, are luxury items the farmer does not purchase or are paid by industry and commerce on behalf of the farmer. The vast majority, some eighty percent of what is imported free of duty, consists of agricultural goods. This leaves the farmer to pay a maximum of 12 percent for goods he never uses while the other sectors of business pay 36 percent on items “which do not benefit them.” The quantity paid by the farmer decreases even further when the actual expenditures of the average farm household are taken into account. In reality, a mere 1.3 percent of tariff costs falls to the farmer. If anyone is being disproportionately charged under tariff policy, it is anyone but the farmer.

Protection, more than a neutral policy yielded a positive good to agriculture. By exacting costs from foreign products, both the volume of imports and their dilution of American purchasing power was curtailed. It was because of the tariff that the standard of living continued, crop diversification was encouraged and home markets were protected. Because of the tariff employment was kept low and wages remained high. Protection for our own products and labor ensured that foreign competition did not supplant quality with quantity and qualified labor with cheap employment at home. Protection protects the farmer, already struggling as it was, to increase not only the strength of the dollar earned but the ability to employ more here at home, reaping the rewards of market prosperity as a whole. As Coolidge would confirm the service of America’s tariff policy unchanged, he declared, “Protection has contributed in our country to making employment plentiful with the highest wages and highest standards of living in the world, which is of inestimable benefit to both our agricultural and industrial population.” There was no need to redo the law making tariffs any more helpful to farmers than it was already proving to be.

As President Coolidge neared the close of his address, he finally offered what he saw as the soundest answers to the “farming problem.” In Part 3 of our overview, “Silent Cal” gives his take on what can be done in agriculture.

Then-Vice President Coolidge adjusting the gag swivel for one of his horses during work at the Notch, 1920.

Then-Vice President Coolidge adjusting the gag swivel for one of his horses during work at the Notch, 1920.

 

On “The Farmer and the Nation,” Part 1

President and Mrs. Coolidge outside the La Salle Hotel during their visit to Chicago, 1925.

President and Mrs. Coolidge outside the La Salle Hotel during their visit to Chicago, 1925.

To say that President Coolidge’s speech before the American Farm Bureau Federation in 1925 was received with skepticism would be an understatement. The 5,000 people assembled in Chicago to hear what the President would say and learn what was ahead for agriculture were neither warm nor receptive. Efforts to empower government control of agriculture had already lost in 1924 despite the energetic support of Agriculture Department Secretary Henry C. Wallace. Unfortunately, Secretary Wallace died suddenly that year and the push for government-subsidized farming was defeated. Congressional support would fall short again in 1926. When the movement gained enough steam to pass, landing on the President’s desk, first in 1927 and again in 1928, Coolidge would veto both attempts for very principled reasons. His vetoes would stand while the policies he articulates here would set the course for American farmers for years to come.

Secretary of Agriculture under Presidents Harding and Coolidge until his sudden death in 1924, Henry C. Wallace is pictured here tending to one of his Jersey cows.

Secretary of Agriculture under Presidents Harding and Coolidge until his sudden death in 1924, Henry C. Wallace is pictured here tending to one of his Jersey cows.

Yet, long before the Congressional battles and Presidential vetoes, Coolidge stood before this gathering of farmers, ranchers, processors, advertisers, the men and women of “agribusiness” to lay out his views on the Nation’s “farming problem.” Coolidge does not receive very high marks from most historians when it comes to agriculture policy. However, the principles he explains here deserve a more honest hearing and respectful appraisal than they have been given today or enjoyed by the audience at the time.

Facing a barely subdued hostility, President Coolidge demonstrated not only his calmness under heat but also the political and personal grit for which he was known all his life. He began with a sweeping reflection on the unique and extraordinary position earned by agriculture in America. He started with praise, not criticism, for the Nation’s incredible success. It had been an incredible transformation in agriculture from what in the Old World had been “uncultured peasants” and “serfs” beholden to work land owned by the Crown. People depended on government to supply their basic subsistence. In contrast, Coolidge reminded his audience, “Agriculture holds a position in this country that it was never before able to secure anywhere else on earth.”

The preceding seventy-five years had brought agriculture to a position unknown in history. “It has become a great industrial enterprise, requiring a broad knowledge in its management, a technical skill in its labor, intricate machinery in its processes, and trained merchandising in its marketings. Agriculture in America has been raised to the rank of a profession.” Coolidge rushes to his point, again reminding his listeners that agriculture “does not draw any artificial support from industry or from Government. It rests squarely on a foundation of its own. It is independent.” Farming in America did not achieve so historic a place by government direction, determining for the individual what he will plant, how much it is worth and where it will be sold. The movement to relinquish the initiative and independent oversight exercised by the farmer would destroy the basis on which agriculture could improve.

As with any great sector of our economy, the “very eminence” of agriculture presented “increasing exactions and difficulties.” The “industry” and “ability” needed to triumph over those obstacles does not come by surrendering the precious independence of the farm to bureaucratic “expertise.” “Whatever other obstacles the American people have had to meet and overcome, of every station in life, they have never permitted themselves to be hampered by a condition of dependence.” President Coolidge, mincing no words, made plain: government controls do hamper, shackle, and restrict people at the worst possible times, when individuals need the freedom to resolve situations quickly and energetically with one’s own judgment, not as Washington slowly allows decisions on its theoretical timetable. “Unencumbered by any special artificial support,” Coolidge admonished, farmers “have stood secure on their own foundation” as opposed to the terms spelled out for them by a central command and control of production and prices. “America is not without a true nobility, but it is not supported by privilege. It rests on worth.”

It is in “our farm life” that a standard of American citizenship displays itself every day. Though diverse, agriculture like America, partakes of the “same high measure of achievement and character.” Coolidge knew firsthand that the farm was not merely in the business of producing food to eat “but as a never-failing source…from which we can always replenish the manhood and womanhood of the Nation.” This was why retaining independence, refusing to resort to government salvation, remained so crucial to Coolidge.

Government dependence exacts a heavy cost upon human life. It robs the individual of her dignity and the person of his humanity. The farm had to continue liberated from the corrosive clutches of bureaucratic stagnation. After all, it was from the same stock that the people fought for and built the country. Americans could not afford to forfeit that spirit of initiative and character. That same spirit manifested itself from Concord bridge with the “shot heard round the world” to the courageous pioneers on the Prairie down to the relentless efforts by those who furnished the supplies needed to turn “the tide for the cause of liberty in the Great War.” America’s independent and rugged farmers had been there through it all. Consequently, America’s gratitude runs deservedly deep for those who farm the land.

Whereas the Old World developed from a centralized power of government to feed and furnish its social classes, reliant on the strength of its crowded cities and affluent metropolises, America was built from its farms. “America,” after all, “never fully came under this blighting influence” of Old World norms. “It was a different type of individual that formed the great bulk of our early settlers.” Gaining results by the cultivation of the soil, the men and women who formed America were not looking to or waiting upon the permission or lordship of sprawling cities or an “industrial population.” The expansive lands, “generous” standards of ownership and technology all collaborated to make possible  “here the first agricultural empire which did not rest upon an oppressed peasantry. This was a stupendous achievement.” It enabled the growth of industry and population to follow, not precede, agriculture.

Poised to become the world’s source of wheat, World War intervened and created a distorted market. Europe’s demand encouraged oversupply and inflated prices. With the end of war, consumption plummeted and prices dropped. The depression of 1920 and 1921 hit farmers — still a solid 25% of the U.S. population — harder than perhaps anyone else. Yet, where many (including much of his audience) saw cause for panic and doubt, Coolidge saw the country incrementally lifting itself out of the valley so that even agriculture was making tangible improvements. It was this review of historical experience that President Coolidge transitioned to the heart of his message: “in order that by a better understanding of the method of its progress and the position it now holds we may better comprehend its needs and better estimate what the future promises for it.”

Coolidge's choice for Secretary of Agriculture fell to William M. Jardine of Kansas. Secretary Jardine would led the counter-charge against government price controls with cooperative marketing and individual initiative.

Coolidge’s choice for Secretary of Agriculture fell to William M. Jardine of Kansas. Secretary Jardine would led the counter-charge against government price controls with cooperative marketing and individual initiative.

Coolidge knew that four years of World War could not be rolled back and prices restored to their former levels. To hope for such a return to what had been abnormal conditions was unrealistic and, ultimately, would help no one. He knew pockets of agricultural endeavors still suffered. He was no Pollyanna, especially when it came to farming because he had come from one of the most remote areas of the country, Plymouth Notch. Yet, surveying the facts and figures of agriculture as a whole, there was no question circumstances were improving since the 1921 depression. Venturing out now on emotional experiments was only going to make the situation worse, not better. Conditions were improving while one timeless truth remained unchanged: life on the farm was always going to be fraught with hardship. No law could exempt anyone from that reality. “Some people would grow poor on a mountain of gold, while others would make a good living on a rock. We can not bend our course to meet the exceptions; we must treat agriculture as a whole. and if, as whole, it can be placed in a prosperous condition the exceptions will tend to eliminate themselves.”As he would argue for in the fight for tax reduction, economic policies needed to be directed at everyone, not a favored few, if the Constitution’s limitation of Federal authority to the “general welfare” of all the people was to honored.

This annoyed his listeners, many of whom, firmly believed that those struggling farmers needed government relief to find a market for what they grew and bolster prices to maintain at least a comparable value to what had been four years prior. Not everyone needed help but those who did, including wheat and cotton farmers, ought to have compensation for the losses suffered. It was unfair that industry had seemingly recovered while agriculture, again seemingly, continued to struggle. Who better qualified to answer those calls for sympathetic help than government, they asserted? The emergency demanded authority to act before agriculture collapsed.

To that baseless forecast of farming’s dire crisis Coolidge next turned. The President had not merely read government reports thrown on his desk but he had traveled the country, met its people and seen its potential. Where some saw failure and catastrophe, the impetus for government intervention, he saw a nation ready to launch into new growth in both farming and industries. It was true that America was already transitioning from a predominantly rural people to an urban population, made possible largely by the mobility of automobile ownership, yet this was “only a part of the story.” To argue for such a drastic takeover of one-fifth of the economy, as agriculture entailed at that time, by government could not be done without fully disclosing all the facts, considering the whole story not merely one side of it. To maintain a sense of doom for agriculture, warranting government step in to save it, was itself a flawed justification, an oversimplification and a gravely short-sighted cornerstone for any public policy.

The President would then explain how, as we shall see in Part 2 of our overview of Coolidge’s address, “The Farmer and the Nation.”

On “Government and Business”

Aerial view of Midtown Manhattan, May 1925. The Plaza Hotel is in the foreground. The Empire State Building would not be constructed until 1931.

Aerial view of Midtown Manhattan, May 1925. The Plaza Hotel is in the foreground. The Empire State Building would not be constructed until 1931.

When Calvin Coolidge accepted the invitation to address the Chamber of Commerce of the State of New York on November 19, 1925, he would speak to the oldest collaboration of entrepreneurs, merchants and businessmen in America. This Chamber, after all, preceded the Declaration of Independence by eight years. Coolidge came to the bustling hub of the nation’s commerce to stand before some of the most accomplished leaders of the marketplace. Not intimidated by either their presence or reputations, Coolidge was caught by the awe and admiration he felt for what New York represented: “the genius of the American spirit.” He observed, “We are met not only in the greatest American metropolis, but in the greater center of population and business that the world has ever known. If any one wishes to gauge the power which is represented by the genius of the American spirit, let him contemplate the wonders which have been wrought in this region in the short space of 200 years. Not only does it stand unequaled by any other place on earth, but it is impossible to conceive of any other place where it could be equaled.” It was all due to the exceptionalism of America’s design, Coolidge would go on to declare. It was no accident that economic freedom could achieve such heights. Such was inherent in recognizing and protecting the opportunity of each individual.

Whereas ancient empires had consolidated political and economic controls into one central government, America was different. New York was still “an imperial city, but it is not a seat of government. The empire over which it rules is not political, but commercial.” This separation was not only deliberate but wise to maintain, Coolidge continued. It was right that, especially in New York City, the government remain merely one tenant among many, not an authoritarian landlord.

He likened Washington and New York City to free-flowing streams which run parallel to one another without ever joining. Had that clear separation never been made, however, the results would have been disastrous not only for New York but for the commerce of the entire country. “When we contemplate the enormous power, autocratic and uncontrolled, which would have been created by joining the authority of government with the influence of business, we can better appreciate the wisdom of the fathers in their wise dispensation which made Washington the political center of the country and left New York to develop into its business center. They wrought mightily for freedom.” The opposite holds equally true today. When government grows, individual opportunity shrinks in proportion to it. For Coolidge, the advantages of keeping business separate from government were easily apparent and readily justified.

What was lacking between the economic world and the political world was not greater supervision but greater understanding between them. While Coolidge could accurately assert that were any contest to take place between the knowledge of business by government and government by business, government officials would win. Considering the profound experience of administration leaders like Andrew Mellon and S. Parker Gilbert at Treasury, Charles Evans Hughes at State and Herbert Lord at the Budget Bureau, including many others with backgrounds in monetary and commercial fields, Coolidge was not exaggerating. Back then, there were highly capable businessmen in government, not to obtain favors for cronies but to serve for the good of the entire country. These were men who understand both worlds and yet even they knew their personal and constitutional limits and respected them.

Coolidge then said, the “general welfare of our country could be very much advanced through a better knowledge by both of those parties of the multifold problems with which each has to deal.” Even so, Coolidge explained, “I should put an even stronger emphasis on the desirability of the largest possible independence between government and business. Each ought to be sovereign in its own sphere.” Washington was not be lord and master subjugating commerce to each bureaucratic whim. The throne of commerce was not to be usurped and co-opted by political power. Likewise, governance for the welfare of all was not salable to the ambitions of business interests.

The outcome, when either authority is supplanted, was clearly abhorrent to Coolidge. “When government comes unduly under the influence of business, the tendency is to develop an administration which closes the door of opportunity; becomes narrow and selfish in its outlook, and results in an oligarchy.” This is what makes the charge ring hollow that Coolidge blindly served “Big Business” at the expense of the country as a whole. Individual opportunity is measured in several ways but by every standard — from unemployment rates of 3.8 per cent to 4.5 per cent annual growth to any number of consumption statistics — the door of opportunity was wider than it had ever been before thanks to an unwavering commitment to keep limited government and commercial freedom separate. Coolidge did not stop there, noting the other “side of the coin,” “When government enters the field of business with its great resources, it has a tendency to extravagance and inefficiency, but, having the power to crush all competitors, likewise closes the door of opportunity and results in monopoly.” Through a “reasonable vigilance” by the people to “preserve their freedom” the threat was not serious then and can be thwarted now.

As Coolidge stood before Chamber President Ecker and those comprising the organization, he took the occasion to define what he meant by “business.” His exposition should put an end to the long-cherished claim that he “worshiped ‘Big Business’ ” (i.e., rich corporations) at the expense of the “little guy” (the small business operator, the single entrepreneur or the blue-collar worker). On the contrary, to Coolidge, business meant everything Americans do. He did not see a series of groups in conflict: labor versus capital, industry versus agriculture, creditor versus debtor. Instead he saw a symbiotic collaboration made possible when opportunity is maximized, where all serve and are served.

He said, “I have used the word in its all-inclusive sense to denote alike the employer and employee, the production of agriculture and industry, the distribution of transportation and commerce, and the service of finance and banking. It is the work of the world.” Capitalism was not institutionalized selfishness; “it rests on a higher law. True business represents the mutual organized effort of society to minister to the economic requirements of civilization. It is an effort by which men provide for the material needs of each other. While it is not an end in itself, it is the important means for the attainment of a supreme end. It rests squarely on the law of service. It has for its main reliance truth and faith and justice.”

Those gathered in downtown Manhattan that day could have expected Coolidge to roll out grand assurances of preferential treatment by his Administration. Perhaps some of those present thought he would validate an unqualified laissez-faire policy, where government would, with a wink and nod, ignore any future abuses by corporations. They would both be disappointed. Coolidge ventured into the controversial territory of the purpose for government involvement in business. He rejected the “autocratic practice abroad of directly supporting and financing business projects.” The socialist approach where government subsidized particular entities it favored would have no place here in normal, every day America. Solyndra would have never obtained a dime under Coolidge. Stimulus appropriations, especially those benefiting winners and losers based on political alliances, would have been a betrayal of government’s proper purpose.

The emergency of the moment did not preclude the rule that America was to nurture free markets. Coolidge laid out his policy, “we have rather held to a democratic policy of cherishing the general structure of business while holding its avenues open to the widest competition, in order that its opportunities and its benefits might be given the broadest possible participation.” To Coolidge, government was not nor should it be participant in the “game.” Government was to encourage an environment of friendliness, not hostility, to the fullest involvement of everyone, letting the market decide success and failure. The government, enforcing the law to prevent monopolies and place standards of regulation on transportation and trade was not to assume powers belonging to business, it was “to have business remain business. We are politically free people and must be an economically free people.” The welfare of all the people is given to the national government, not to an independent commission or trade association. Government cannot farm out that responsibility if opportunity for everyone is to be maximized.

Coolidge was no blind believer in government power, as he made plain next, “It is notorious that where the government is bad, business is bad.” The protection of property and the enforcement of lawful order is government’s first and most essential contribution to business. Even these necessary functions have been misapplied and “run into excesses…Regulation has often become restriction, and inspection has too frequently been little less than obstruction.”

Recalling the experiences of the recent past, Coolidge noted that long after informed public opinion corrected the abuses by those taking advantage of economic freedom to abuse others, an unwarranted prejudice remained. That widespread public prejudice becoming enshrined in legislation ended up doing far more harm than good to economic opportunity. “It is this misconception and misapplication, disturbing and wasteful in their results, which the National Government is attempting to avoid.” Coolidge neither nursed a prejudice against business to conscientiously correct abuses nor did he subscribe to an unquestioned confidence in government to right all wrongs.

The lesson of history was not to grasp for greater regulatory countermeasures but to keep faith in the American people, who corrected the abuses without legislation in the past and could be trusted to do so with continued vigilance into the future. The answer was not to be found by looking to government to “fix” business. The answer is found in the public upholding common standards for just dealing.

Seeing the return of prosperity and unprecedented expansion of opportunity, Coolidge seized the occasion to enumerate the additional ways government reinforces business. First, a policy of economy provides the “only method of regeneration.” Pairing tax reduction and protective tariff rates releases pent-up capital and gives production the incentive to produce. Second, a policy pursuing the elimination of waste in the use of resources protects the “smaller units of business,” the producer, the wage earner and the consumer. The previous five years, Coolidge praised, could lay claim to many successes on the part of business allowed to find solutions, instead of government mandating actions. By offering a cooperative environment in which to work, government fostered freer business.

The regulation of corporations twenty years before had served its purpose, now this shift for government and business was no less important. The collaboration underway was producing a real and solid progress. One need only see the improvement of living standards, the increase in affluence and the free movement of capital to perceive its success. This was not all, however. Debt was liquidating while taxes were coming down. Wages were actually going up while prices were actually coming down. These were results everyone could see. “The wage earner receives more, while the dollar of the consumer will purchase more,” Coolidge told the Chamber. “It must be maintained” because more work remained to be done. Business still had much to do and government needed to keep policy consistent so progress continued.

All of these advancements were not merely the simple give and take of a market transaction. They contained great moral and spiritual implications, not only for America but for the rest of the world. America had just saved Europe from “complete collapse,” Coolidge reminded his audience. “It ought everywhere to be welcomed with rejoicing and considered as a part of the good fortune of the entire world that such an economic reservoir exists here which can be made available in case of need.” Government economy then pertains as much to foreign policy as to domestic good. It was no less imperative in the settling of foreign war debts. “Peace,” Coolidge would say, “rests to a great extent upon justice, but it is very difficult for the public mind to divorce justice from economic opportunity.” Our political affairs cannot attain righteous ends without preserving the freedom of the marketplace.

As Coolidge neared the close of his remarks, he urged his listeners of the great expectations placed on America, within man’s work in this world. “The working out of these problems of regulation, Government economy, the elimination of waste in the use of man effort and materials, conservation and the proper investment of our savings both at home and abroad, is all a part of the mighty task which was imposed upon mankind of subduing the earth. America must either perform her full share in the accomplishment of this great world destiny or fail.”

Then Coolidge pressed the point home that all of our efforts, all of our relations must rest on “a system of law.” It is upon law, the reasonable and orderly appeal to higher standards that success will continue. Reflecting on George Washington, President Coolidge derived his closing inspiration in what the future held. As Washington did, “[w]e must meet our perils; we must encounter our dangers; we must make our sacrifices, or history will recount that the works of [George] Washington have failed. I do not believe the future is to be dismayed by that record. The truth and faith and justice of the ancient days have not departed from us.”

CC White House lawn