Remarks at the Democratic Party Jefferson-Jackson Day Dinner in Des Moines, Iowa

When I think of Iowa, I think of people, mostly. I think about Marie Jahn, Soapy Owens, Harry Baxter, Floyd Gillotti, and literally dozens of other people who had confidence in me months and months before I was able to convince the rest of the world that I was a political figure who needed watching.

Two years ago, I came to speak to the annual Jefferson-Jackson Day Dinner in Iowa at Ames. I was not the only main speaker on the program. [Laughter] But when the evening was over, we had won what proved to be a great national victory. I have to admit that most of my votes came from people who were sitting in the balcony in the $5 seats. And even now a lot of them are wondering whether or not they got their money's worth. [Laughter] But it formed a tie or a cement between myself and your State and your people that will last until the last day I live. I'm grateful to you, and since then I've had a chance to learn more about this country, more about its people.

My family have become the centers of attention--there has been 2 or 3 weeks of publicity about whether Amy was playing "Three Blind Mice" or "Twinkle, Twinkle, Little Star" on her violin. We've had a chance to learn about the rest of the world. We'll be making a long overseas trip beginning the last of November. We'll be going down to Brazil to pick up the sweater that Rosalynn left there last spring. We'll be making several stops on the way--in Venezuela, Nigeria, Iran, Saudi Arabia to refuel our plane and to get special dealer's rates from the oil-producing countries. [Laughter]

It's really kind of a pleasure trip for me as President. You get to do things that everyone wants to do but very seldom has a chance to accomplish. How many of you have ever had Thanksgiving Day in Lagos? [Laughter] See what I mean? But I hope to take to those countries an accurate image of our Nation, representing you.

My family has been affected in other ways. My brother, Billy, has found another way to make a living other than growing peanuts. He can go to Canada and do a bellybuster in the swimming pool and make more money than he made all year on the farm. [Laughter] When I mentioned that to Billy, he said, "Well you forgot, Jimmy, that I don't know how to swim." [Laughter] But anyway, he is doing his share for the Nation's economy. He's put the beer industry back on its feet--almost alone. [Laughter]

A lot of people criticize Billy, but his standing in the public opinion polls is substantially above my own. [Laughter] As a matter of fact, lately--you couldn't tell it by tonight--but the polls have been down a little. But I remind myself that even in the worst of polls, I've only dropped 3 percent since election night. So, I'm pretty good there. And in the more responsible and reliable polls, we're still up pretty high, as you know, and I have enjoyed it.

Tonight, I went to the hotel room for a couple of hours before coming over here, and I wanted to write some notes for my speech. I thought back to a little more than 3 years ago when I first came to Iowa. I traveled across your State. I think I stopped in seven towns and cities. And I began to talk about issues that were important to you and important to me and important to our country. Quite often very few people came. Harry Baxter and his wife arranged for two or three hundred to come to a reception here in Des Moines. I think three people came, including Harry Baxter's wife and Jody Powell and one other. And I was invited over to the courthouse and went through and shook hands.

But way back in those days we were already talking about human rights. We were talking about stopping the construction of the B-1 bomber. We were talking about bringing lasting peace to the Middle East. We were talking about holding down weapons sales, not only from our country, which is the worst violator of all, but among arms producers throughout the world. We were talking about a better relationship with the Soviet Union, a comprehensive SALT agreement that would put a limit on atomic weapons of all kinds. And we are making great progress on this effort. And I can tell you that in a few weeks, my prediction is that we will have a SALT agreement that will be a pride of our country, and following that, we will proceed toward my ultimate goal of reducing nuclear weapons in this world to zero.

Back in those early days, even a year ago, there was a general feeling that nothing could be done to stop the proliferation of nuclear explosives among countries that presently don't have them. But in the last 9 months we have formed a commitment among the nations of the world to permit some use of atomic power to produce electricity, but to prevent the production of weapons. And I believe that we'll never see another nation again added to that horrible club that we started of countries that have nuclear destructive weapons in our repertoire.

This week 36 nations came together in Washington to talk about the international nuclear fuel cycle and how we might bring into being this dream of all people in the world.

We talked about the reorganization of the Federal branch of Government, the executive branch, to bring some order out of bureaucratic chaos. And the Congress has given me authority now, for 3 years, to carry out this effort. And I am as determined now as I was 3, 2, or 1 year ago, to do it successfully.

We talked about inflation. A year ago the inflation rate was very high--last December, 10 percent. We've brought it down slowly and steadily. The information that was given out this morning on a 1-month-only basis was that the inflation rate is below 4 percent for the first time in quite a while. I think the prevailing inflation rate is about 6 or 6 1/2 percent. It's going to be almost impossible to hold it down. But we are making some progress.

We're doing the same thing on the unemployment rate. Last December it was 8 percent. Now it's down to 7 percent, a little bit lower. It's still a great challenge to us all, but we are making some progress.

I was in Detroit earlier today. Two years ago, the unemployment rate in that urban city was 24.4 percent; now, it's 8.8 percent. But we still have an unemployment rate among minority groups, particularly young people, 35 or 40 percent.

It's not going to be an easy thing to do, but I'm just as determined as I was before to carry out my commitment to you to bring some order out of chaos in our economy. We're working orderly and persistently with other nations of the world to address these matters on a multinational basis, and I believe that we are making some progress.

I know that our country's persuasive effort around the world to bring about peace in Africa, in the Middle East, better relationships with our former enemies, depends upon a strong economy.

Tonight, I'd like to mention two subjects that are important among all those others. One is the economy as it relates to agriculture.

Yours is a great agricultural State. It provides one of the ties between me and you. The economy of our country is based upon agricultural production. We're the greatest nation on Earth in the production of food and feed and fiber. Your State is preeminent. But we have some problems in agriculture that we're also trying to address.

Agriculture and the people who participate in this effort are not well understood. It would be a serious mistake to think that we have no inherent problems. We can't take for granted bountiful crops. We can't take for granted economic health. We can't take for granted food supplies.

We are now forming efforts to bring about our hopes. We have an Agriculture Secretary, Bob Bergland, who's a dirt farmer. He's the kind of man who understands the special problems of farm families. He's been there. He went to Florida as a migrant worker. He came 'back home and borrowed money to start a small rent farm operation. He now has about 600 acres of farmland, as you know, in the northernmost part of Minnesota. And he's working on the extremely complicated subjects that deal with the farmers' lives in a very enlightened, down-to-earth, practical, and effective way.

We've come out this year with a comprehensive farm bill that will help in many ways to carry out the promises that I made to you when I was campaigning in your State. We've established target prices which on an average will meet production cost, and it's done in a conservative way which will help to hold down the rapidly escalating prices for farmland.

We've also set price supports that will keep our products competitive. We've increased exports. In this last 12 months our farm exports were $24 billion, the highest they've ever been in the history of our country. This year, on a worldwide basis, we have fairly good crop weather. Exports may not be as good in fiscal year 1978 as they have been last year, but we'll try to hold them up.

One of the promises that I made to the farmers of this State and others during my campaign was there would be no more grain embargoes, and you can depend on that. There won't be as long as I'm in the White House.

We're trying to establish, for instance, a noncommercial insurance program to make sure that farm product exporters are protected from losses that they can't anticipate. We're trying to expand Public Law 480 to increase the export of our farm products, food and fiber and feed, to nations that are destitute and hungry. We're trying to cut down artificial trade barriers in the multinational trade negotiations now going on in Europe. We're opening agricultural trade offices in places around the world where they haven't existed before.

We're trying to make it possible for farmer-owned cooperatives to negotiate directly in the sale of feed grains and food grains. We're making sure that we bring together the different departments of our Federal Government in the common effort to sell agricultural products--the Labor Department, our Special Trade Representative, the Commerce Department, the State Department, as well as the Department of Agriculture.

We're trying to establish a comprehensive world food policy to match the tremendous production that we have with the tremendous need among the hungry people of the world. And we're trying to explore new markets, not only in Western Europe and Japan but in Eastern Europe and other countries as well.

So, in the export of food we're trying to increase the quality of service that the great farm areas of our Nation provide for the rest of the world. We've got a long way to go. We have to work out the problem with food reserves, and my promise to the farmers of this area was that when we did have high-yielding crops--and this is the greatest crop we have ever had in corn; it's the greatest crop we've ever had in soybeans that we would have reserves that would be not under the control of the Government, but supported and controlled by farmers so there can be no dumping on the market, artificially, to lower prices. And I promised you that we'd do the best I could to get the Government out of interference in the production, storage, and marketing of crops. These kinds of challenges are constantly on my mind.

We have a long way to go in soil and water conservation efforts, and we've got a long way to go in providing a comprehensive disaster assistance program.

There's another item I'd like to mention tonight, and that's the subject of energy. I presented to the Congress and to the American people last April, for the first time in the history of our Nation, a comprehensive energy policy.

We had a severe blow in 1973 when the prices of oil were quadrupled almost overnight. And when an oil embargo was slapped on our country, that economically almost brought us to our knees.

Other nations suffered the same challenge. They have reacted well. The consumption of oil in Germany, compared to 1973, is down. The consumption of oil in Sweden is down, France down, Italy down, Japan down. The consumption of oil in the United States since 1973 is up 87 percent. This year we are importing $45 billion worth of oil from overseas, half of the oil we use. And that's almost exactly the amount that we waste, that we don't have to waste. Notice that this is twice as much oil imported as all the agricultural products that we export. Something must be done.

It's not easy to remove the hold on our government processes that have been in existence for a long time by the oil and gas companies, but I'm determined to do it with your help. In many ways, the acceptance by the American people and the acceptance by the American Congress of a comprehensive energy policy is a test of our strength and a test of our national will. The rest of the nations of the world watch us very closely to see if we can sacrifice in a time of international need.

The proposal that we've put forward is bitter medicine, but it's not nearly so bitter as the catastrophe that might befall us if we don't take rapid action. We have put forward a well-balanced program that will induce our own selves to conserve energy of all kinds. It will induce us, without hurting us deeply, to shift to other forms of energy, away from oil and natural gas. I'm determined that the consumers of our Nation will not be hurt and that the oil suppliers, the companies that produce oil and gas, will not be enriched in an unwarranted fashion. We have built into our proposal adequate incentives to encourage oil and gas exploration and production.

Under our own program new oil discovered by American companies in the future will have the highest price on Earth. But still the oil companies want more. And unless we stand firm, they may get it. And if they do, it will come out of the pockets of those who need it, who need the money and who need adequate energy supplies most.

As a farmer, I know that we, just a small part of the American population, use $6 billion worth of oil and gas every year. About 75 percent of all the energy we use is oil and natural gas. This means that we have got to have a supply in the future, because it takes natural gas and propane to dry our crops.

It takes oil to drive our tractors and our trucks and our other machinery. We can't very easily shift to coal. So, as we conserve and shift to other supplies of energy, in the production of electric power, for instance, it makes that much more available to farmers in the future when energy supplies become even more scarce.

There are some myths that are exploited on your television set several times a day, sometimes several times an hour.

The first myth is that the oil and gas industry is controlled by free market forces. All of us believe in the free enterprise system, but there is no free enterprise system in the oil and gas market. The prices are not established by competition. The prices are established arbitrarily when the OPEC nation leaders meet in secret and say, next year this is what we will charge for oil. And, as you well know, immediately that oil price prevails in new oil discoveries in our country.

We have a need, at least for our Government, to play a stronger role, as is played in other countries. But we ought to get away from the proposition or the thought that free market forces control oil or natural gas prices.

Another myth is that there's an inherent conflict between conservation and production. This is not true. We are making good progress in exploration for oil. There's about an 8-month waiting period right now for new oil drilling rigs. If we triple the price of oil and natural gas, there could be no substantial increase in the rate of exploration. It would be just an enormous windfall of profits. The cheapest oil is what we save, and the cheapest natural gas is what we save. Quite often it costs nothing to save the equivalent of one barrel of oil per day.

When we add expensive conservation measures, it costs maybe from zero to $3,500 to provide the saving of one barrel of oil per day. The oil that we are now going to bring down from Alaska costs about $20,000 in capital investment for one barrel of oil per day, used at its final place to heat a home. For the production of electricity, the capital investment required is much greater, maybe $50,000 to $100,000 for the equivalent of one barrel of oil used in your home in electricity. For nuclear powerplants, the investment is $200,000 to $300,000 per barrel of oil per day, when it's actually delivered to your home for use.

So, to conserve a barrel of oil is much better than producing that barrel of oil in investment alone. And at the same time it reserves for future use these extremely scarce supplies.

I wanted to mention tonight especially those two among many subjects that fall on my shoulders--agriculture and energy. The tests of political strength are severe; the responsibilities are great; the complexities are very difficult; the questions are hard to answer. But what gives me a sense of assurance and confidence is the degree with which I am close to you. When I base my opinion and my decision and my efforts on what I know you feel and what I know that you want, to that degree I feel that I represent you and our Nation well.

I have a feeling that we are making good progress in correcting some of the deep concerns that we felt a year, 2 years, 3 years ago. The spirit of our country had been damaged severely by the Vietnam war. It had been damaged severely by the Watergate revelations, by the CIA investigations. There was a sense of concern about what our Nation stood for.

I think now there's a new spirit in our Nation. I believe with our stand on human rights, our efforts to bring peace, to reduce the nuclear threat, to alleviate the hatreds in the Middle East, to bring majority rule and peace to southern Africa, that there is a sense of purpose again.

And in my own way as a human being with limits that you and I both recognize, but occupying the most important office perhaps in the whole world, I want to be sure that the American flag is once more lifted high and when anyone on Earth sees it, they think about freedom, they think about the worth of an individual human being, they think about hope, they think about a sense of compassion and love, they think about high ideals, they think about openness of government, they think about democratic principles, they think about compassion and concern, and they think about the worth of our people who live in harmony from so many different places on Earth.

These are the hopes that I have as President. I thank you for your involvement in the democratic processes, your support of our party, your friendship toward me. I thank you for the fine congressional delegation that you've sent to Washington who represent you and our Nation so well. And I know that I can speak for them as I repeat a phrase that I used thousands of times in my long campaign: All I want and all they want is a government as good as the people of our country.

Thank you very much.