xt7wwp9t2q46_73 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 76 "Our Growing National Debt And Inflation" Radio Address by Edwin Walter Kemmerer, Walker Professor of International Finance in Princeton University, November, 1935 text No. 76 "Our Growing National Debt And Inflation" Radio Address by Edwin Walter Kemmerer, Walker Professor of International Finance in Princeton University, November, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_76/Am_Lib_Leag_76_001/Am_Lib_Leag_76_001.pdf section false xt7wwp9t2q46_73 xt7wwp9t2q46 PAMPHLETS AVAILABLE A
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Copies of the following pamphlets and other
League literature may be obtained upon application
to the League’s national headquarters:
Statement of Principles and Purposes    
American Liberty League—Its Platform
An Analysis of the President's Budget Message
Economic Securit
Inm,. Y NATIONAL DEBT
The Thirty Hgur Week gill
The Holding ompany ill
Price Control
The Labor Relations Bill    
The Farmers’ Home Bill
The TVA Amendments
The Supreme Court and the New Deal
The Revised AAA Amendments *
The President’s Tax Program
Expanding Bureaucracy
Lawmaking by Executive Order
New Deal Laws in Federal Courts V
Potato Control R¤di¤ Add1’¤¤¤ bY
Consumers and the AAA ·
Budget Prospects EDWIN WALTER KEMMERER
Dangerous Experimentation _ _
Economic p]arming....Miccakcrr But Not New Walker Professor of International Finance
The National Labor Relations Act——Summary in Princeton University.
of Conclusions from report of the National
Lawyers Committee Honorary Chairman
Straws which Tell mi ' tion ommittee on Monetar Polic .
How to Meet the Issue-Speech by W. E. Borah Econo Sis Nu   C _ Y Y
The American Bar—The Trustee of American (md M°mb°¥ N¤u°¤¤1 AdVi$°*'Y C°u¤°*1 °{ the
Institutions—Speech by Albert C. Ritchie American Lgborgy League
Fabian Socialism in the New Deal—Speech by _
Demarest Lloyd I
A The People's Money—Speech by Dr. W. E. Spahr y"
Legislation-By Coercion or Constitution-
Speech by Jouett Shouse
Recovery by Statute——Speech by Dr. Neil
Carothers QE  C4
The Imperilment of Democracy—Speech by Y'   4*
Fitzgerald Hall _  
The Test of Citizenship———Speech by Dean Carl IZ s   W
W. Ackerman °¢ c?
Today’s Lessons for Tomorrow—Speech by *?;·Y Lg?
Captain William H. Stayton
"Breathing Spells"—~Speech by Jouett Shouse
The Duty of the Lawyer in the Present Crisis-
Speech by James M. Beck
The Constitution and the Supreme Court— e
Speech by Borden Burr
The Economic Necessity in the Southern States
for a Return to the Constitution—Speech by AMERICAN LIBERTY LEAGUE
Forney Johnston ,
National Headquarters
* National Press Building
AMERICAN LIBERTY LEAGUE Washington, D. C.
National Press Building
Washington. D. C. ,
L Document No. 76
' November, 1935

 deficit, which is now averaging about ten million
dollars a day, was greater than it was for the
corresponding period of last year. There is no
eflld yet in sight lif tlgesif accumulating deficits.
e nationa pu ic e t is now about thirt
OUR GROWING NATIONAL DEBT AND billion dollars. By the end of the present nscall
INpLA·HgN year the national debt will probably be at least
double what it was in 1931.
THE Democratic national platform of 1932 ~ A large proportion of these enormous
which declared itself to be a “contract" and expenditures has been incurred with the object of
"a covenant with the people to be faithfully having the nation spend its way out of the
kept by the party when intrusted with power." __ d€pl‘€SSiOI1. Although there has been some
contained the following financial planks: "We ' recovery and at present there are distinct signs
advocate an immediate and drastic reduction of of improvement, the figures published monthly
government expenditures . . . to accomplish a by the League of Nations show that our own
saving of not less than 25 per cent in the cost industrial production has recovered much less of
of the Federal Government . . ," We advocate the ground lost since 1928 than have the
"maintenance of the national credit by a Federal industrial productions of Great Britain, Canada,
budget annually balanced . . . [and] a sound Germany, Italy, Sweden and many other coun-
currency to be preserved at all hazards." tries. To accomplish this modest recovery of
ours. we have increased our national debt since
In inaugurating his plans for carrying out 1928 hY a much larger Pereentage than has
these eminently sound financial pledges of his anY other advaneed eollntrY rn the World with
party, President Roosevelt early declared to the Posslble eXeePtlon ef ltalY·
Congress: "For three long years the Federal
Government has been on the road to bankruptcy The really dangerous part of the situation,
. . . With the utmost seriousness I point out however, is not so much the present size of our
to the Congress the profound effect of this fact national debt—as bad as that is——but the rate
upon our national economy . . . Too often in at which that debt is growing, the uneconomical
recent history liberal governments have been and in many cases the wealth and character
wrecked on rocks of loose fiscal policy. We destroying uses for which the money borrowed
must avoid this danger. It is too late for a and collected in taxes is being expended, and
leisurely approach to this problem. We must the fact that the forces that usually curb
not wait to act several months hence . . . We excessive government expenditures are at present
y must move with a direct and resolute purpose comparatively ineffective.
now. The members of the Congress and I are
~ pledged to immediate ecc>n0my." 1 The increase in our public debt for the three
» years ending next June will be approximately
Two and a half years have passed since that T equivalent to $40 a minute from the date
I declaration was made. What has actually Columbus discovered America to the present
’ happened? time. Meanwhile our taxes also have been
y increasing rapidly while our national income out
I Each year the eeeei expeneiaeueee of me , ef Whisk they ere parable has beep fer beipw
National Government have exceeded those of the ` what lt was betore the deP,reSSlon· havlng
year preceding, and for the three years 1934 to <1ee1;¤ed everv veer but ¤¤e emee 192% and
1936 inclusive they will amount to a total haVlng averaged ln ellrrent dollars thlrtY‘tWo
of about twenty-one billion dollars. This will · Per _ee¤¢ lower durlng the la$t three Years than
give an accumulated deficit for the period of over during the three Years Preeedlng·
nine billion dollars as compared with a deficit
of less than six billion dollars for the preceding Hundreds of millions of dollars of our
three years of the depression. During the first recently accumulated deficit have been incurred
three and a half months of the present year the to pay for the production at excessive costs of
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 un roductive and little needed ublic works with United States Government securities are
P P . . . . . . .
and to com ensate farmers for destro in little well known. The various innationary policies
. P. Y g .
pigs, ploughing under cotton, and for not of the Qovernment have_been purposely directed
producing crops and live-stotk. The burden of to glutting the banks_w1th funds so as to force
taxation is increased to obtain funds to destroy upon them a reduetion of the interest rates
the national wealth out of which the taxes must charged for loans, liberal loan and investment
be paid. policies, and currency and credit expans1on, vgith
_ _ the object of forcing up the level of commo ity
Aitboiigb we beVe been _eXPeriencing 3 prices. The business depression and the lack of
substantial growth of taxes during the last few ednndenee of the public in the ngtiggfg
Years egainst whleh the Pnbirc ere Shewvez i immediate economic recovery —— a lack of
increasing oPI?osition· our enormous increase rn t confidence that persists largely by reason of the
pubhe e>f ebe taxes tbeY waiting. The banks are simply glutted with
PaY· Ae eminent Engnsb bistorren nas eeiied funds which they cannot safely and profitably
’ the Power ef tne Purse tne surest safeguard ef use in private business. What else can they do
freed<>m·" when tne rnenibers ef Congress with this enormous supply of cheap money that
who Veee foe lelge expelloleules ef Puolle moltey the Government’s inflationary policies have piled
. are compelled at the same time to vote or tt On them than to invest it in government
i additional taxes for meeting these expenditures, Segurities?
taxes which are distributed equ1tably among all
.— classes of voters both rich and poor and that are when prices rise under the stimulus Ot
* eollselously Palo ?Y.else Voeetls and lloe tsoneeeieg inflationary forces, the costs of government
 i in the tfeem lg inerteese tPgees’ e eg so likewise advance and the government, therefore,
I thee ee Y ost ste mem els o d ingress eeegeg needs continually increasing revenue; but rising
_ Wegehdeee o . tte treasnttg ati; tngnxéseenngl costs of living, with tne_usua1_ lag in _wage
  an eeollomles ll is . Y advances, make the public increasingly resistant
- authorize. If they are not economical, they are to higher taxes. For the Obtaining of the addn
not reeleeeeel tional revenues required to meet these growing
The eieeeee· hewevee is Vey d*“e=ee*= when Sxiieieneeiilgfese ‘§‘§§°€?.2°’p.E§E‘§finSiiiéli
a great part of the expenditures is financed .P . . . .
increasingly to 1nflat1on rather than to heavier
through the sale of government debt to the . . . . . . .
b · · · taxes. Inflation 1S subtle and 1ns1d1ous in its
anks which the_ banks pay for by issuing bank k. and the ublic are much slower to
e notes or, more importantly, by placing to the wor ings P .
· · · · realize the costs of government financing effected
· government s credit bank deposits that the . . · -
- - · through inflation than they are in feeling the
government in turn pays out as It desires by . . ,. .
. · - burden of increased taxation. Financing through
  means of checks. This practice when long , . .
J Continued s aus inflation l inflation accordingly tends to become progres-
P ° sively the line of least political resistance and
More than half of our total national debt is .i el°ls.tPol;eY ls elgelieisztetslgsltceoo often Continued
today held by our banks and of the debt uoel le elmllle ee °
flotations from 1931 to l934 something like _ _
seven eighths were absorbed by the banks. The resort of a nation to financing by
V ‘ inflation has often been compared to the resort
The reasons why our banks are so loaded up of an individual to opium smok1ng. The nrst
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sensations are pleasant, but the more one takes, l AN INVITATION TO JOIN THE
the more he wants. The appetite grows by E AMEg]gAN LIBERTY LEAGUE
what it feeds upon, and the more one indulges, ;
the weaker become his powers Of reSiStanc€' l We extend to every American citizen wh believes
. o
_ _ _ _ { in the fundamental principles which gave birth to the
ma,-¥hie 1c;rf lnigglclglgraglllrouigh llnillatran i Constitution of the United States an invitation to
. ¤¤°¢S¤ Pb brhA·L·bL.
farmers, excessive doles, and unreasonably high I emma 3 mem at O t e mmcan I my eague
{Wages I to dbotgl neservlng and und€$€YV_lnS ( E You may indicate your acceptance of this invitation
unemp Oye an * In _S9 _dOmg· may fo]: 3 tune l by nlling in the necessary information as to your name
 lliogfgilasils Ycvlgo faxor 1t• lf   E and address on the enrollment blank below and mailing
_ » O g IU11 W1 » ‘ A · L·b L l · · ·
bring great harm upon nearly all classes of our Q l§V;;nlnI;§g:mD_1(§_tty eague National Press Building,
people including those who now seem to ;
b€n?nt•_ The $3d ITOHY Of such an lnnatlonalv i There are no fees or dues. If you are willing and
POIICY lS_ that In a Snbtle WaY the Government l able to give monetary help for the League’s support
ls fmanclng Itself Chleflynnot out Of taxes te be E your contribution will be appreciated, as our activities
pald by future gene1‘at10¤S, but _out of the { are supported entirely by the voluntary gifts of our
endowments of public welfare institutions, our ; mcmbcm
schools, colleges and hospitals, out of the life {
insurance of millions of our people and out of i
the_sav1ngs of the poor, the foresighted and the   ENR0!·I·MEN'1‘ BLANK
thrifty. We are squandermg our social welfare ;
patrimony. We hear much of social security, { Dm
and recently the Government has enacted into i "``'''°`'``````'‘`‘```‘''‘°``‘‘‘°‘'‘
law a vast program to provide such security for i
the aged and the unemployed, The program E .1 f¤V01‘ the principles and purposes of the American
Calls for thc accumulation Of a fund Of tens of l Liberty League and request that I be enrolled as a
billions of dollars, to be invested in government { { ’°€“l§* _ lmember
bonds. from the income of which the aged and Q *°°¤*¤b¤¤¤S '
unemployed will be cared for. This security, ;
however, will be built on very weak foundations ;
if by reason of serious inflation the dollar in I Signature ..............................................................,,,,
which these bonds are payable and in terms of {
which the aged and unemployed receive their E
benefits becomes highly uncertain in value and l
loses 3 large part Of its purchasing power. l ................................. _ ..........................................
Social security is no rnore secure than the value { Nam (M" M"' Mm)
of the dollar in which its benefits are payable. E fg
As American citizens 1f you believe in the old { g
fashioned virtues of honesty and thrift, 1f you   it
rights, if you believe in the fundamental ;
principle of Anglo-Saxon democracy, the control ~~ { l·_l·_______  
control of government revenue, then fight l
inflation for it is the deadly enemy of these _ ;
things You hold dear. { *As a contributing member I desire to give $ ............
I to help support the activities of the League: Cash
E herewith ...... , ......... Installments as follows: ..................
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