PRESIDENT FRANKLIN D. ROOSEVELT BROADCAST TO THE NATION (excerpts)

September 7, 1942

I wish that all the American people could read all the citations for various medals recommended for our soldiers, sailors and marines. I am picking out one of these citations which tells of the accomplishments of Lieutenant John James Powers, United States Navy, during three days of the battles with Japanese forces in the Coral Sea.

During the first two days, Lieutenant Powers, flying a divebomber in the face of blasting enemy anti-aircraft fire, demolished one large enemy gunboat, put another gunboat out of commission, severely damaged an aircraft tender and a twenty thousand ton transport, and scored a direct hit on an aircraft carrier which burst into flames and sank soon after.

The official citation describes the morning of the third day of battle. As the pilots of his squadron left the ready room to man their planes, Lieutenant Powers said to them, "Remember, the folks back home are counting on us. I am going to get a hit if I have to lay it on their flight deck".

He led this section down to the target from an altitude of 18,000 feet, through a wall of bursting anti-aircraft shells and swarms of enemy planes. He dived almost to the very deck of the enemy carrier, and did not release his bomb until he was sure of a direct hit. He was last seen attempting recovery from his dive at the extremely low altitude of two hundred feet, amid a terrific barrage of shell and bomb fragments, smoke, flame and debris from the stricken vessel. His own plane was destroyed by the explosion of his own bomb. But he had made good his promise to "lay it on the flight deck."

I have received a recommendation from the Secretary of the Navy that Lieutenant James Powers, of New York City, missing in action, be awarded the Medal of Honor. I hereby and now make this award.

You and I are "the folks back home" for whose protection Lieutenant Powers fought and repeatedly risked his life. He said that we counted on him and his men. We did not count in vain. But have not those men a right to be counting on us? How are we playing our part "back home" in winning this war? The answer is that we are not doing enough.

Today I sent a message to the Congress, pointing out the overwhelming urgency of the serious domestic economic crisis with which we are threatened, and others call it "inflation," which is a vague sort of term, and others call it a "rise in the cost of living," which is much more easily understood by most families.

That phrase, "the cost of living," means essentially what a dollar can buy.

From January 1, 1941 to May of this year, the cost of living went up about 15%. At that point we undertook to freeze the cost of living. But we could not do a complete job of it, because the Congressional authority at the time exempted a large part of farm products used for food and for making clothing; though several weeks before, I had asked the Congress for legislation to stabilize all farm prices.

At that time I had told the Congress that there were seven elements in our national economy, all of which had to be controlled; and that if any one essential element remained exempt, the cost of living could not be held down.

On only two of these points-both of them vital however-did I call for Congressional action. These were: first, taxation; and, second, the stabilization of all farm prices at parity.

"Parity" is a standard for the maintenance of good farm prices. It was established as our national policy in 1933. It means that the farmer and the city worker are on the same relative ratio with each other in purchasing power as they were during a period some thirty years ago at a time when the farmer had a satisfactory purchasing power. 100% parity, therefore, has been accepted by farmers as the fair standard for their prices.

Last January, however, the Congress passed a law forbidding ceilings on farm prices below 110% of parity on some commodities. On other commodities the ceiling was even higher, so that the average possible ceiling is now about 116% of parity for agricultural products as a whole.

This act of favoritism for one particular group in the community increased the cost of food to everybody-not only to the workers in the city or in the munitions plants, and their families, but also to the families of the farmers themselves.

Since last May, ceilings have been set on nearly all commodities, rents and services, except the exempted farm products. Installment buying has been effectively controlled.

Wages in certain key industries have been stabilized on the basis of the present cost of living.

It is obvious, however, that if the cost of food continues to go up, as it is doing at present, the wage earner, particularly in the lower brackets, will have a right to an increase in his wages. That would be essential justice and a practical necessity.

Our experience with the control of other prices during the past few months has brought out one important fact-the rising cost of living can be controlled, providing all elements making up the cost of living are controlled at the same time. We know that parity prices for farm products not now controlled will not put up the cost of living more than a very small amount; but that if we must go up to an average of 116% of parity for food and other farm products-which is necessary at present under the Emergency Price Control Act before we can control all farm prices-the cost of living will get well out of hand. We are face to face with this danger today. Let us meet it and remove it.

I realize that it may seem out of proportion to you to be worrying about these economic problems at a time like this when we are all deeply concerned about the news from far distant fields of battle. But I give you the solemn assurance that failure to solve this problem here at home-and to solve it now-will make more difficult the winning of this war.

If the vicious spiral of inflation ever gets under way, the whole economic system will stagger. Prices and wages will go up so rapidly that the entire production program will be endangered. The cost of the war, paid by taxpayers, will jump beyond all present calculations. It will mean an uncontrollable rise in prices and in wages which can result in raising the over-all cost of living as high as another 20%. That would mean that the purchasing power of every dollar you have in your pay envelope, or in the bank, or included in your insurance policy or your pension, would be reduced to about eighty cents. I need not tell you that this would have a demoralizing effect on our people, soldiers and civilians alike.

Over-all stabilization of prices, salaries, wages and profits is necessary to the continued increasing production of planes and tanks and ships and guns.

In my message today I have told the Congress that this must be done quickly. If we wait for two or three or four or six months it may well be too late.

I have told the Congress that the Administration can not hold the actual cost of food and clothing down to the present level beyond October first.

Therefore, I have asked the Congress to pass legislation under which the President would be specifically authorized to stabilize the cost of living, including the price of all farm commodities. The purpose should be to hold farm prices at parity, or at levels of a recent date, whichever is higher. The purpose should also be to keep wages at a point stabilized with today's cost of living. Both must be regulated at the same time; and neither can or should be regulated without the other.

At the same time that farm prices are stabilized, I will stabilize wages.

This is plain justice-and plain common sense.

I have asked the Congress to take this action by the first of October. We must now act with the despatch which the stern necessities of war require.

I have told the Congress that inaction on their part by that date will leave me with an inescapable responsibility to the people of this country to see to it that the war effort is no longer imperiled by the threat of economic chaos.