the Treasury Department to the Department of Justice as a beginning
of more effective organization.

THE RELATION OF GOVERNMENT TO BUSINESS

The election has again confirmed the determination of the American
people that regulation of private enterprise and not Government
ownership or operation is the course rightly to be pursued in
our relation to business. In recent years we have established a
differentiation in the whole method of business regulation between the
industries which produce and distribute commodities on the one hand
and public utilities on the other. In the former, our laws insist upon
effective competition; in the latter, because we substantially confer
a monopoly by limiting competition, we must regulate their services and
rates. The rigid enforcement of the laws applicable to both groups is
the very base of equal opportunity and freedom from domination for all
our people, and it is just as essential for the stability and prosperity
of business itself as for the protection of the public at large. Such
regulation should be extended by the Federal Government within the
limitations of the Constitution and only when the individual States are
without power to protect their citizens through their own authority. On
the other hand, we should be fearless when the authority rests only in
the Federal Government.

COOPERATION BY THE GOVERNMENT

The larger purpose of our economic thought should be to establish more
firmly stability and security of business and employment and thereby
remove poverty still further from our borders. Our people have in recent
years developed a new-found capacity for cooperation among themselves
to effect high purposes in public welfare. It is an advance toward the
highest conception of self-government. Self-government does not and
should not imply the use of political agencies alone. Progress is born
of cooperation in the community--not from governmental restraints. The
Government should assist and encourage these movements of collective
self-help by itself cooperating with them. Business has by cooperation
made great progress in the advancement of service, in stability, in
regularity of employment and in the correction of its own abuses. Such
progress, however, can continue only so long as business manifests its
respect for law.

There is an equally important field of cooperation by the Federal
Government with the multitude of agencies, State, municipal and private,
in the systema