Under free governments trade must be free, and to be of permanent value it ought to be independent.

Commerce has no other permanent foundation.

While America is not the chief market for breadstuffs and animal products of these countries, it is and must be the chief market for industrial raw material, tropical and semitropical foods, copper, hides, wool, oil, cane sugar, and coffee.

It is my belief that more and more the trade of our country is conforming to these principles.

It is not enough that goods are made; a demand for them must also be made.

Our economic well-being depends on our integrity, our honor, our conscience.

Advertising is the life of trade.

Now, it is very important that this country keep down its expenditures.

There is one problem that I have to keep under constant emphasis, and that is economy and government expenditures.

It has been pointed out time and time again that this money has to be paid by our taxpayers unless it is paid by the taxpayers of the country or the countries which borrowed the money.

Of course anyone that gives the matter a moment's thought would recognize the great difficulty of the Government in undertaking to say what securities are good or sound or some equivalent word and what are not.

I find it is helpful to me to go back once in a while to see that I am not forgetting how people earn their living.

I think that is attributable partly to the reduction of taxation.

As far as I can see myself and as far as I am advised by the members of my Cabinet, Mr. Hoover, who keeps very closely in touch with the business situation, and Mr. Mellon, who is in touch with the banking situation and the business situation, too, both advised me just before I left Washington that the business outlook for the coming period, immediate period, was good, and so far as there have been developments since I talked with them their expectations have been fully confirmed.

The business conditions in the country are more than meeting expectations.

The tax measure I would say was the most important piece of legislation.

There is another item that I left out, which of course is of tremendous importance, and that is the settlement of our foreign debts.

The principal thing that will affect the country is the reduction of taxation.