“It would be foolish and wrong to ignore the fact that all our universities today tread a very dangerous path. Increasingly, they are accepting government money because they are doing things that government wants done. How great a peril is this in a democracy?”

This appears to be a manufactured quote for a PBS documentary on the American Revolution, created by condensing, rewriting, and paraphrasing portions of a lengthy letter James Madison wrote to Thomas Jefferson on 17 October 1788 http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1937&chapter=118854&layout=html&Itemid=27, about the need for a Bill of Rights and the danger of an establishment of religion. The resulting "quote" profoundly changed the import of what Madison was trying to say and uses modern English. The phrases "biggest danger" and "tyranny of the majority" aren't even in the original letter. The relevant portions of the original letter are (italics in the original; bold added for emphasis):<blockquote>"… In Virginia I have seen the bill of rights violated in every instance where it has been opposed to a popular current. Notwithstanding the explicit provision contained in that instrument for the rights of Conscience, it is well known that a religious establishment would have taken place in that State, if the Legislative majority had found as they expected, a majority of the people in favor of the measure; and I am persuaded that if a majority of the people were now of one sect, the measure would still take place and on narrower ground than was then proposed, notwithstanding the additional obstacle which the law has since created. Wherever the real power in a Government lies, there is the danger of oppression. In our Governments the real power lies in the majority of the Community, and the invasion of private rights is chiefly to be apprehended, not from acts of Government contrary to the sense of its constituents, but from acts in which the Government is the mere instrument of the major number of the Constituents. This is a truth of great importance, but not yet sufficiently attended to; and is probably more strongly impressed on my mind by facts, and reflections suggested by them, than on yours which has contemplated abuses of power issuing from a very different quarter. Wherever there is an interest and power to do wrong, wrong will generally be done, and not less readily by a powerful & interested party than by a powerful and interested prince. …"</blockquote>
Misattributed

As quoted in NEA Journal : The Journal of the National Education Association‎ Vol. 41 (1952) p. 300
Context: One of the basic causes for all the trouble in the world today is that people talk too much and think too little. They act too impulsively without thinking. I am not advocating in the slightest that we become mutes with our voices stilled because of fear of criticism of what we might say. That is moral cowardice. And moral cowardice that keeps us from speaking our minds is as dangerous to this country as irresponsible talk. The right way is not always the popular and easy way. Standing for right when it is unpopular is a true test of moral character. The importance of individual thinking to the preservation of our democracy and our freedom cannot be overemphasized. The broader sense of the concept of your role in the defense of democracy is that of the citizen doing his most for the preservation of democracy and peace by independent thinking, making that thinking articulate by translating it into action at the ballot boxes, in the forums, and in everyday life, and being constructive and positive in that thinking and articulation. The most precious thing that democracy gives to us is freedom. You and I cannot escape the fact that the ultimate responsibility for freedom is personal. Our freedoms today are not so much in danger because people are consciously trying to take them away from us as they are in danger because we forget to use them. Freedom unexercised may be freedom forfeited. The preservation of freedom is in the hands of the people themselves — not of the government.

Creation seminars (2003-2005), The Garden of Eden

Source: Nature of Man and His Government (1959), p. 45

1930s, Address at Madison Square Garden (1936)
Context: We had to struggle with the old enemies of peace — business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob. Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me — and I welcome their hatred.

Supporting Cult Prevention, Assistance, & Recovery http://www.csj.org/aff/aff_contribution, Herbert L. Rosedale, president (deceased), American Family Foundation, 2005 - International Cultic Studies Association.
"The Art of Hoping: A Mother’s Story" http://www.csj.org/infoserv_articles/langone_michael_arthoping.htm, Cultic Studies Journal, Michael Langone, Ph.D.

Quoted on BBC News, "Maldives election: Abdulla Yameen wins run-off vote" http://www.bbc.co.uk/news/world-asia-24974019, November 16, 2013.

Source: Initiation, The Perfecting of Man 1923, p. 15

Speech in Boston (2002)