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The deteriorating economy was a major issue in the 1930 midterm elections, and Democrats won major gains. In the House and Senate a coalition of Democrats and progressive Republicans began to demand that federal funds be used to assist those suffering from the effects of the Depression. Hoover objected strenuously. While he had aggressively encouraged the use of public works to provide employment for those out of work, he believed that “charitable purposes” should be left to private organizations such as the Red Cross. For the federal government to get involved, he predicted, would undermine the independence that was necessary to self-government.
Source: Herbert Hoover, “Statement on Public vs. Private Financing of Relief Efforts.” Online by Gerhard Peters and John T. Woolley, The American Presidency Project. http://www.presidency.ucsb.edu/ws/?pid=22943.
Certain senators have issued a public statement to the effect that unless the President and the House of Representatives agree to appropriations from the Federal Treasury for charitable purposes they will force an extra session of Congress.
I do not wish to add acrimony to a discussion, but would rather state this case as I see its fundamentals.
This is not an issue as to whether people shall go hungry or cold in the United States. It is solely a question of the best method by which hunger and cold shall be prevented. It is a question as to whether the American people on one hand will maintain the spirit of charity and mutual self-help through voluntary giving and the responsibility of local government, as distinguished on the other hand from appropriations out of the Federal Treasury for such purposes. My own conviction is strongly that if we break down this sense of responsibility of individual generosity to individual and mutual self-help in the country in times of national difficulty and if we start appropriations of this character we have not only impaired something infinitely valuable in the life of the American people but have struck at the roots of self-government. Once this has happened it is not the cost of a few score millions but we are faced with the abyss of reliance in future upon Government charity in some form or another. The money involved is indeed the least of the costs to American ideals and American institutions. . . .
And there is a practical problem to all this. The help being daily extended by neighbors, by local and national agencies, by municipalities, by industry and a great multitude of organizations throughout the country today is many times any appropriation yet proposed. The opening of the doors of the Federal Treasury is likely to stifle this giving and thus destroy far more resources than the proposed charity from the Federal Government.
The basis of successful relief in national distress is to mobilize and organize the infinite number of agencies of self-help in the community. That has been the American way of relieving distress among our own people and the country is successfully meeting its problem in the American way today.
We have two entirely separate and distinct situations in the country; the first is the drought area; the second is the unemployment in our large industrial centers – for both of which these appropriations attempt to make charitable contributions.
Immediately upon the appearance of the drought last August, I convoked a meeting of the governors, the Red Cross and the railways, the bankers and other agencies in the country and laid the foundations of organization and the resources to stimulate every degree of self-help to meet the situation which it was then obvious would develop. The result of this action was to attack the drought problem in a number of directions. The Red Cross established committees in every drought county, comprising the leading citizens of those counties, with instructions to them that they were to prevent starvation among their neighbors and, if the problem went beyond local resources, the Red Cross would support them.
The organization has stretched through the area of suffering, the people are being cared for today through the hands and with sympathetic understanding and upon the responsibility of their neighbors who are being supported in turn by the fine spirit of mutual assistance of the American people. The Red Cross officials whose long devoted service and experience are unchallenged, inform me this morning that except for the minor incidents of any emergency organization, no one is going hungry and no one need go hungry or cold.
To reinforce this work at the opening of Congress I recommended large appropriations for loans to rehabilitate agriculture from the drought and provisions of further large sums for public works and construction in the drought territory which would give employment in further relief to the whole situation. These Federal activities provide for an expenditure of upward of $100,000,000 in this area and it is in progress today.
The Red Cross has always met the situations which it has undertaken. After careful survey and after actual experience of several months with their part of the problem they have announced firmly that they can command the resources with which to meet any call for human relief in prevention of hunger and suffering in drought areas and that they accept this responsibility. They have refused to accept Federal appropriations as not being consonant with either the need or the character of their organization. The Government Departments have given and are giving them every assistance. We possibly need to strengthen the public health service in matters of sanitation and to strengthen the credit facilities of that area through the method approved by the Government departments to divert some existing appropriations to strengthen agricultural credit corporations.
In the matter of unemployment outside of the drought area important economic measures of mutual self-help have been developed such as those to maintain wages, to distribute employment equitably, to increase construction work by industry, to increase Federal construction work from a rate of about $275,000,000 a year prior to the depression to a rate now of over $725,000,000 a year; to expand state and municipal construction – all upon a scale never before provided or even attempted in any depression. But beyond this, to assure that there shall be no suffering, in every town and county voluntary agencies in relief of distress have been strengthened and created and generous funds have been placed at their disposal. They are carrying on their work efficiently and sympathetically.
But after and coincidently with voluntary relief, our American system requires that municipal, county and state governments shall use their own resources and credit before seeking such assistance from the Federal Treasury.
I have indeed spent much of my life in fighting hardship and starvation both abroad and in the southern states. I do not feel that I should be charged with a lack of human sympathy for those who suffer but I recall that in all the organizations with which I have been connected over these many years, the foundation has been to summon the maximum of self-help. I am proud to have sought the help of Congress in the past for nations who were so disorganized by war and anarchy that self-help was impossible. But even these appropriations were but a tithe of that which was coincidently mobilized from the public charity of the United States and foreign countries. There is no such paralysis in the United States and I am confident that our people have the resources, the initiative, the courage, the stamina and kindliness of spirit to meet this situation in the way they have met their problems over generations.
I will accredit to those who advocate Federal charity a natural anxiety for the people of their states. I am willing to pledge myself that if the time should ever come that the voluntary agencies of the country together with the local and state governments are unable to find resources with which to prevent hunger and suffering in my country, I will ask the aid of every resource of the Federal Government because I would no more see starvation amongst our countrymen than would any senator or congressman. I have the faith in the American people that such a day will not come.
The American people are doing their job today. They should be given a chance to show whether they wish to preserve the principles of individual and local responsibility and mutual self-help before they embark on what I believe is a disastrous system. I feel sure they will succeed if given the opportunity.
The whole business situation would be greatly strengthened by the prompt completion of necessary legislation of this session of Congress and thereby the unemployment problem would be lessened, the drought area indirectly benefitted and the resources of self-help in the country strengthened.