Faulkner's speech was short. He introduces his main point at the beginning of the second paragraph.
Our tragedy today is a general and universal physical fear so long sustained by now that we can even bear it.
He was speaking in 1950. The Cold War between the United States and the U.S.S.R. had begun. Both sides were building more and more atomic weapons. The U.S.S.R. was building enormous long-range missiles to deliver the atomic warheads anywhere in America. The U.S. had short-range missiles pointed at the U.S.S.R. from bases in Europe and elsewhere, as well as bombing planes based within easy striking distance of the Soviet cities and military targets. Everyone in the world could see that the two superpowers would soon have enough bombs to blow up the entire world and wipe out the human race. Faulkner said:
There is only one question: When will I be blown up?
Everyone present understood exactly what he was talking about. Since Faulkner felt that he was using this occasion
...as a pinnacle from which I might be listened to by the young men and women already dedicated to the same anguish and travail, among whom is already that one who will some day stand here where I am standing...
he addressed his answer to the problem by telling these aspiring young writers that the writer
...must teach himself that the basest of all things is to be afraid, and, teaching himself that, forget it forever, leaving no room in his workshop for anything but the old verities and truths of the heart, the old universal truths lacking which any story is ephemeral and doomed--love and honor and pity and pride and compassion and sacrifice.
The implication was that it is the duty of serious writers to encourage men and women to be courageous and optimistic regardless of the growing danger of nuclear annihilation. Now, looking back at the general mood of hopelessness and numbed terror of the Cold War period, we can see that William Faulkner was absolutely right when he said
I believe that man will not merely endure; he will prevail....It is his [the writer's] privilege to help man endure by lifting his heart, by reminding him of the courage and honor and hope and pride and compassion and pity and sacrifice which have been the glory of the past.
Faulkner's speech was inspired by the Cold War. It was the most serious threat that the human race had ever faced. An atomic war could have been triggered at practically any moment by either side. Paranoia reigned. Faulkner undoubtedly did inspire many young writers to produce valuable poetry, stories, and novels which encouraged their readers to show the same optimism, determination, and fortitude that Faulkner prescribed. He was not only a great writer, but he had a great spirit.