Congressional Record-House 2881

1933 CONGRESSIONAL RECORD-HOUSE 2881

1s no practical difference between the notes presumed to be re being done, and try as they will, the politicians cannot destroy deemable in gold and the notes to be issued under this proposal. the confidence of the people in the leadership of the President. Critics further express the fear that we w1ll suffer the experience They know that when the President was inaugurated on March of Germany with its marks. They forget that in Germany there 4, every bank in the Nation was closed, and with intelligence and was no control of the issue of marks and no annual appropria courage he proceeded to place our banking system on a solid tion for retirement; that Germany had just been through a dis basis; that he found a Treasury with a huge deficit, increasing astrous war and its resources were practically destroyed; that while at the rate of $5,000,000 a day; and, in 30 days, he had balanced Germany was hopelessly in debt, the United States is a creditor the Budget without levying additional taxes upon the people. nation; that while the marks were used to pay current expenses, The people have no fear and cannot be frightened into believing these notes are to be used to retire interest-bearing obligations of that Franklin D. Roosevelt will exercise the discretion placed in the Government; that while no effort was made to balance Ger him so as to permit any wild inflation or unwise expansion. They many's budget, the Budget of the United States is balanced. A trust him. Their confidence is not misplaced. government that can control its expenditures can control the infia tion of its currency. RECESS TO MONDAY There is another power conferred upon the President by the Mr. ROBINSON of Arkansas. If there be no further busi terms of the bill. It would authorize him to fix the weight of the gold dollar if, as a result of an investigation, he finds it is neces ness, I move that the Senate take a recess until 12 o'clock sary for the protection of our foreign commerce against the effect noon Monday. of depreciated currencies of other governments. It cannot be The motion was agreed to; and New York, to be Ambassador increase in price levels, which has resulted from the introduction Extraordinary and Plenipotentiary of the United States of of this legislation and by reason of the power given to the Presi dent by this proposal. America to Belgium, and also Envoy Extraordinary and Min While I have heard some men criticize this measure, I have yet ister Plenipotentiary of the United States of America to to hear one offer a substitute. They would let deflation continue. Luxemburg. The deflation of the past three and a half years not only destroyed values but destroyed the morale of the people. The introduction UNDER SECRETARY OF THE 'TREASuRY of this measure effectively stopped the deflation. It has increased Dean G. Acheson, of Maryland, to be Under Secretary of the price of all commodities. The increased buying power of more than 30,000,000 people living on the farms of the Nation has the Treasury, in place of Arthur A. Ballantine, resigned. increased the sales by chain stores and mail-order houses. It has UNITED STATES CIRCUIT JUDGE increased the production of steel and today thousands of men are returning to work in the industries of the Nation. More than Francis A. Garrecht, of Washington, to be United States $500,000,000 in farm loans are held by banks of the Nation, circuit judge, ninth circuit, to succeed Frank H. Rudkin, whether open or closed. The increased prices of agricultural prod deceased. ucts has increased the price of farm lands, and this, with the increase in the value of the securities held as collateral by the UNITED STATES ATTORNEY banks, will make possible the opening of many banks now in the George E. Hoffman, of Florida, to be United States attor hands of conservators, thereby saving millions of dollars to the depositors. ney, northern district of Florida. He is now serving in this The increase in the price of agricultural commodities, if it con· position under an appointment by the court. tinues, may even make it unnecessary for the Department of PuBLIC HEALTH SERVICE Agriculture to resort to the allotment features of the agricultural relief bUl. The employment of men in industry may make un The following-named assistant dental surgeons to be necessary a public-works program on the extensive sea.le at first passed assistant dental surgeons_ with the grade of passed planned, and certainly should result in reducing expenditures for assistant surgeon in the Public Health Service, to rank as the relief of the destitute and hungry. In the face of this improvement in the business world, some such from the dates set opposite their names: politicians, who for the past 3 years have dictated the policies Ray P. Breaux, July 21, 1933. of the Government, are preaching the doctrine of despair. Last James F. Lewis, July 21, 1933. fall they declared that bad as things were, they might be worse. Today they prophesy that conditions will be worse. Unhappy are Thomas L. Hagan, July 22, 1933 . . their days. I picture them presenting the blessings of deflation to a man who, as a result of the introduction of this amendment, CONFIRMATIONS has just sold his cotton or wheat at a profit, has paid his note at the bank, and is returning home with money in his pocket and Executive nominations confirmed by the Senate May 4 Canada. time secure this amount of money by selling 4 bales of cotton, Laurence A. Steinhardt to be Envoy Extraordinary and because cotton was then selling for 25 cents a pound, or $125 Minister Plenipotentiary to Sweden. a bale. SECRETARIES IN THE DIPLOMATIC SERVICE Ten days ago if this investor sold his $500 bond, he could with the proceeds of the sale purchase 20 bales of cotton, because cot Cavendish W. Cannon. ton was selling for $25 a bale. As a result of the introduction James S. Moose, Jr. of this measure, cotton has increased in price from 5 cents to 8 cents a pound. This man who holds a $500 bond which he bought with the proceeds of four bales of cotton in 1918, could today secure for his $500 only 12 bales. The same illustration could be HOUSE OF REP~ESENTATIVES made as to every agricultural commodity. The plight of this investor does not arouse great sympathy. He is not entitled to THURSDAY, MAY 4, 1933 have the Government continue a policy of deflation in order to enable him today to purchase with h1s $500 five times as much The House met at 12 o'clock noon. as he could have purchased with it in 1918. The inability of the The Chaplain, Rev. James Shera Montgomery, DD., debtors of the Nation to discharge their obligations at the price offered the fallowing prayer: level prevailing for the past 3 years has demoralized business and threatened the very structure of our Government. As banks O God, our everlasting Father, we have in Thee the source failed, as corporations went into bankruptcy and families were and the magnificent disclosure of all those virtues by which driven from homes, unrest and fear gripped the people. Today, under the leadership of President Roosevelt, hope has we live, by which love is sanctified and true friendship made. supplanted fear. Action has supplanted inaction. Something is The whole soul of gratitude incites the song of praise. Hear 2882 CONGRESSIONAL RECORD-HOUSE MAY 4 our prayer, blessed Lord. In these days of wide-spread dis yield time to one gentleman who was making a very interest tress, open all hearts to be bountiful; to give themselves ing speech, and who spent some 10 or 15 minutes reading a more and more to the unfortunate. Our Father, join us all letter he had received from a corporal in the Army. This together in the unity of a true brotherhood. We pray for gentleman, it is true, is very distinguished and has served more willingness, for more patience, and more confidence in notably in the United States Senate for some time, and we all our fellow citizens. Take us unto Thyself, dear Father, were glad to hear the gentleman, but it so happened that save us all from selfishness, from false pride, from envY, and that thing went along until the undemocratic situation con fill our lives with the spirit of love and benevolence which fronted us very forcibly. It is not a personal matter with shall bring the summertime of cheer and the promise of a me, but I want to suggest to those gentlemen that they new day to all institutions and to all homes everywhere. were not doling out their time, but our time, and the Com Amen. mittee on Appropriations assumed the role of consuming The Journal of the proceedings of yesterday was read and the time of this House without limit, and as to whom it shall be given and as to how long they shall speak. approved. MESSAGE FROM THE SENATE Mr. TABER. Will the gentleman yield? Mr. BUSBY. In just a moment. Now, it so happens in A message from the Senate, by Mr. Horne, its emolling times past a Member could ask unanimous consent and get clerk, announced that the Senate had passed with amend a special order to address the House at a time definite, and ments, in which the concurrence of the House is requested, that time could be arranged, and Members who wanted to the bill New York City at one Mr. BYRNS. Mr. Speaker, I move a call of the House. and the same moment. Rather it is because we have refused to apply science to the development of social machinery-machinery The motion was agreed to. that will regulate our economic system to the end that what we The doors were closed, the Clerk called the roll, and the produce can be equitably divided. following Members failed to answer to their names: I am not one to ask for less efficiency. I want more, and I know [Roll No. 33] that we can get far more. But I want the efficiency to be con Almon Cavicchia Foulkes Kennedy, N.Y. trolled in such a way that it does more good than harm. I want Bankhead Cell er Fulmer Lanzetta to see the farmers of the South grow 300 pounds of cotton per Black Cochran, Pa.. Gambrill Lea, Calif. acre instead of 150 pounds, and the farmers of the North 50 Bland Connery Gifl'ord Lee, Mo. bushels of corn per acre instead of 35 bushels. I want to see the Blanton Crowe Goldsborough Lewis, Md. average milch cow yield 400 pounds of butterfat per year instead Bloom Culkin Goodwin McDuffie of 200. And I see no reason why our hogs eventually should no!; Boland Cummings Haines McFarlane produce 100 pounds of pork on the average from 6 bushels of corn Brand De Priest Hamilton Montague instead of from 9 bushels. Britten Dautrich Harlan Nesbit These things can all be done. The research now going on will Brown, Mich. Evans Higgins O'Brien Browning Faddis Hornor Perkins make it possible and will pave the way for countless new agricul Brumm Farley James Pierce tural achievements as well. Buckbee Fernandez Jeffers Randolph Only the other day I learned that research now in progress Carpenter, Nebr. Fiesinger Johnson, Okla. Reed,N.Y. indicates that crops grown in some regions of the Nation have a Carter, Wyo. Flannagan Kennedy, Md. Romjue 1933 CONGRESSIONAL RECORD-HOUSE 2887 Sadowski Stokes Waldron Wood, Mo. pay annually the staggering smn of $13,000,000,000. I feel Sanders Stubbs Werner Zioncheck Simpson Tinkham Withrow most of you will agree with me upon that subject. Sisson Underwood Wolienden The next is one upon which I am sure some will not agree The SPEAKER. Three hundred and fifty-seven Members with me. That is the alienation of American trade by un have answered to their names. A quorum is present. fortunate or, as the gentleman from Texas [Mr. SUMNERS] Mr. BYRNS. Mr. Speaker, I move to dispense with fur would say, maladjustment of our tariff legislation. This is ther proceedings under the call. a controversial question I thoroughly realize, and I have not, The motion was agreed to. of course, the time to discuss it now, but that is a part of my diagnosis. · THIRD DEFICIENCY APPROPRIATION BILL, 1933 Third, the dissipation of American wealth by investment Mr. BUCHANAN. Mr. Speaker, I move that the House in practically worthless foreign securities. I apprehend resolve itself into the Committee of the Whole HoYSe on the some effort will be made to correct that trouble. I have state of the Union for the further consideration of H.R. about come to the conclusion that an American citizen 5390, the third deficiency bill; and pending that motion, I should not have the right to own an interest in a foreign ask unanimous consent that general debate be limited to government, in other words, to buy a bond of a foreign gov 2 hours and 30 minutes, 1 hour to be controlled by the gen ernment, for the reason that, by way of illustration, when tleman from New York [Mr. TABER] and one hour and a half one invests a thousand dollars in a German bond, he au by myself. This is to comply with the requests for time tomatically becomes $1,000 German, and what we need in promised yesterday. America is that every citizen be 100 percent American. The SPEAKER. Is there objection to the request of the [Applause.] gentleman from Texas? The fourth and, to my mind the most serious question There was no objection. confronting us is the very great increase in the use of labor The motion was agreed to. saving devices without due regard and provision for the Accordingly the House resolved itself into the Committee laborers displaced, thereby increasing the ranks of the Un. of the Whole House on the state of the Union, with Mr. employed. I think we all agree that we are not suffering MCREYNOLDS in the chair. so much from overproduction as we are from undercon Mr. BUCHANAN. Mr. Chairman, I yield 15 minutes to sumption. Just a few years back the students in the col the gentleman from Georgia [Mr. CASTELLowl. leges found employment in Texas helping to gather the Mr. CASTELLOW. Mr. Chairman and members of the wheat crop when the harvest period began, and they fol Committee, on yesterday I had the pleasure of listening to lowed the season through to Canada. Now what have we? a very interesting discussion by the distinguished gentleman We have the wheat, we have the crops, we have the young from Texas [Mr. SUMNERS]. Early in the discussion he used men who need the jobs, but the machines do the work. this language: · Year before last in a trip through the West, in the western I have been here 20 years, and it seems to me a great pity that part of Kansas, driving along one evening, I looked to the Members of Congress cannot assemble and, figuratively speaking, left of the road and there saw a great pile in a field that sit around the council table and, without oratory and without seemed to be sawdust, but I knew it could not be because passion, give intelligent, constructive consideration to their difficulties. there was not a tree that was not planted by hand within 50 miles of that spot. I found upon investigation that it Immediately upon that statement I made the request for was a great pile of wheat, as yellow as gold, and almost as the time which I am now consuming. · heavy, threshed, ready for the mill, piled in the fields, ex The gentleman from Texas further continued: posed to the weather, decaying, sprouting, while in the city We have in our economic organization a maladjustment which 100 miles away, strong men and feeble women walked the lies at the seat of our trouble. The physician who has a patient streets begging for bread. I inquired of two young men ill seeks to intelligently diagnose and discover the origin of the trouble. near by as to who had produced these crops. They replied, "We did." I then asked, "What help or labor did you Quite often it has occurred to me that there is a marked employ?" The answer was "None." Then I asked how similarity between the physical body and the body politic. many acres they cultivated to produce this great pile of Not only" that, according to my judgment, the statesman bears wheat. The answer was "1,000." By the use of improved the same relation to the body politic as does the medical machinery they were able without assistance to cultivate doctor to the physical body. If there is a disease of the this large area and produce this abundant crop. Gentle physical body from which we suffer, there is a perfectly logi men, this is the problem confronting us now which will cal reason for its existence, though we may be unable to cause more trouble in its solution than any other question discover the cause. Many unfortunate citizens have gone before us. to their graves without the cause of the malady ever being The fifth, I would say, is the most important of all, and ascertained. would have produced this condition, in my judgment, with So if we are suffering from disease in the body politic, it out the aid of the other four. That is the tremendous in behooves us to at least undertake to diagnose the case and crease in our obligations n~cessitating the payment of a find the cause of the disease. Oftentimes physicians cannot multitude of debts with a handful of money. We give to agree upon this very important question. I apprehend, sir, the medium of exchange a dual nature. The primary pur that oftentimes those who are called to pass upon the con pose of money is to function simply as a medium of ex dition of the body politic cannot agree, as has been evidenced change. As such, we do not expect it to earn anything. here during my service in this distinguished body. No one expects a profit from the money he carries around in According to my diagnosis, there are five fundamental his pocket or keeps in his checking account at the bank. causes of the trouble from which we are suffering today. I Nothing whatsoever; that is, when devoted to its primary know that some of you will not agree with me fully upon all purpose and used simply as a medium of exchange. But we of my conclusions. However, I desire to submit them to you gave to it another nature. We consider it as having intrinsic for your consideration. In doing so I shall mention these value, and as such expect it to earn us something in the causes, with respect to importance, in reverse order. way of rents, which we call simply interest. It is here The first, I would say, is governmental extravagance. Our that the trouble begins. When it is treated as a commodity taxes, as we all know, have grown to tremendous proportions with intrinsic value, it then becomes subject to the laws not only in the Federal Government but in the State Gov governing other property of similar character. We know ernment, the county and municipal government, to such an what would happen if there were only 5,000,000 bales of extent that I understand the President of the United States, cotton in the United States and that was owned by members before a col4:,<"Tess of Governors in the State of Virginia, made of the New York Cotton Exchange, and the outside public the statement that the people of America are called upon to had sold to these men who own the cotton already 200,- 2888 CONGRESSIONAL RECORD-HOUSE MAY 4 000,000 bales of cotton. It is very apparent what would hap On April 29, 1933: pen under those circumstances and conditions. H.R. 4225. An act granting the consent of Congress to the If there were only 5,000,000 bales and the outside public Commonwealth of Pennsylvania to construct, maintain, and had gone short 200,000,000 bales, and delivery time comes, operate a free highway bridge across the Allegheny River at could the obligations be met? Could it be done? It could or near Parkers Landing, in the county of Armstrong, Com not. To deliver what does not exist is simply a physical monwealth of Pennsylvania; and impossibility. Thn.t is exactly where we are today in refer H.R. 4332. An act granting the consent of Congress to the ence to our financial obligations, and that alone, without Commonwealth of Pennsylvania to construct, maintain, and the other four causes I have mentioned, would have put us operate a free highway bridge across the Allegheny River at in the position which we now occupy. It might not have a point near the Forest-Venango county line, in Tionesta done it quite so quickly. · Township, and in the county of Forest, and in the Common Now, what is the remedy? One of two things must hap wealth of Pennsylvania. pen. There is no question about it. There is only one of On May l, 1933: two ways out, and that is that those obligations die a H.J.Res. 135. Joint resolution to amend section 2 of the natural death or else that the money with which to liqui act approved February 4, 1933, to provide for loans to farm date those contrncts be increased. That is the proposition. ers for crop production and harvesting during the year 1933, The danger which lies in inflation I understand very clearly. and for other purposes. I have some reason to know something about what inflation NATIONAL TRANSPORTATION POLICY {H.DOC. NO. 32) mea.ns, unbridled and uncontrolled. I was one of those un The SPEAKER laid before the House the following mes fortunates who invested in German marks, yet I am con sage from the President of the United States, which was vinced of this, that a railway train may be run from one read and referred to the Committee on Interstate and For side of this country to the other on an even speed of 40 eign Commerce and ordered printed: miles or 38 or 42 miles, whichever you decide upon, if you place it in the hands of a competent engineer who has at his To the Congress: command two things; but he must have them. He must The steam railways still constitute the main arteries of have steam and he must have brakes. He must have the commerce in the United States. At this time, however, moral courage and ability to use either one that is needed. available traffic is not sufficient profitably to utilize existing If he will do so, he can keep that engine on an even speed railway facilities and the supplementary facilities provided of 40 miles an hour, upgrade and downgrade. by new forms of transportation. So with our commercial system, place the power of infla Our broad problem is so to coordinate all agencies of tion and contraction in competent hands, and if used wisely, transportation as to maintain adequate service. · I am not honestly, and courageously, business can be maintained on yet ready to submit to the Congress a comprehensive plan. practically an even keel; but that is where the danger lies. for permanent legislation. We in America especially not only like to ride but we like to I do believe, however, that three emergency steps can and ride rapidly. We all say, "Let us put on the steam now; let should be taken at this special session of the Congress. us get over this grade." After we pass over and things are First. I recommend the repeal of the recapture provisions booming and the track behind us is disappearing the engi of the Interstate Commerce Commission Act. The Commis neer reaches for the throttle to cut off the steam, the pas sion has pointed out that existing provisions are unwork sengers say, "Stop; you are our engineer. We put you in able and impracticable. this place. This is our train and she is running good. Let Second. Railway holding companies should be placed defi her go." But he says," She is going 45 miles an hour." "It nitely under the regulation and control of the Interstate does not matter. The faster the better." He says, "It is Commerce Commission in like manner as the railways going 50 miles an hour." "Well, that is not dangerous." themselves. "It is going 60 miles an hour." "Well, she is just going Third. As a temporary emergency measure, I suggest the good. Let her go." That is where the danger lies--in creation of a Federal coordinator of transportation, who, uncontrolled power. working with groups of railroads, will be able to encourage, We have two media of exchange. The legal medium, promote, or require action on the part of carriers, in order money, and the practical medium, commercial paper. The to avoid duplication of service, prevent waste, and encourage usual cause of what we term" prosperity" is inflation of the financial reorganizations. Such a coordinator should also, practical medium, commercial credit, controlled by finan in carrying out this policy, render useful service in main-. ciers who expand and contract it at will for their own profit taining railroad employment at a fair wage: and to the impoverishment of the Nation. This condition The experience gained during the balance of this year will must be replaced, to some extent, at least, by a controlled greatly assist the Government and the carriers in prepara currency resting in more impartial hands. [Applause.] tion for a more permanent and a more comprehensive The CHAIRMAN. The time of the gentleman from Georgia national transportation policy at the regular session of the [Mr. CASTELLOW] has expired. Congress in 1934. Mr. AYRES of Kansas. Mr. Chairman, I move that the FRANKLIN D. ROOSEVELT. Committee do now rise. THE WmTE HOUSE, May 4, 1933. The motion was agreed to. Accordingly the Committee rose; and the Speaker having THIRD DEFICIENCY APPROPRIATION BILL resumed the chair, Mr. MCREYNOLDS, Chairman of the Com Mr. AYRES of Kansas. Mr. Speaker, I move that the mittee of the Whole House on the state of the Union, re House resolve itself into the Committee of the Whole House ported that that Committee, having had under consideration on the state of the Union, for the further consideration of the bill H.R. 5390, the third deficiency appropriation bill, the bill

1933 CONGRESSIONAL RECORD-HOUSE 2893 offices of the Government and its aid in bringing about a mu dent may " neither be increased nor diminished during the tual understanding and amity among the various political fac period for which he shall. have been elected." Nevertheless, tions, based on the restoration of the civil rights of the Cuban people, and the establishment of a government in Cuba "ade President Franklin D. Roosevelt, as did President Herbert quate for the protection of the lives, property, and individual Hoover before him, voluntarily returned and is returning liberty", as guaranteed by the Platt amendment. to the Treasury the same proportion of the presidential [Applause.] salary that other officials and employees of the United Mr. AYRES of Kansas. Mr. Chairman, I yield 10 minutes States were cut under the provisions of the Economy Act. to the gentleman from Ohio [Mr. YoUNG1. I denounce the Federal judges who have refused to volun Mr. YOUNG. Mr. Chairman, as Congressman at large tarily restore 15 percent of their salaries to the Treasury, from the State of Ohio, representing nearly 7,000,000 citizens and now demand that each forthwith voluntarily pay this who have been compelled to make personal and financial percentage of his salary into the Treasury. sacrifices by reason of the economic disaster out of which I Section 7 of the Economy Act, which was enacted because hope this country will soon emerge, I denounce Federal the President stated our country was threatened with bank judges of my State and other States who have failed and are ruptcy, is as follows : now refusing to voluntarily repay into the Treasury of the In any case in which the application of the provisions of this United States 15 percent of their salaries. [Applause.] act would result in the diminution of compensation prohibited by the Constitution, the Secretary of the Treasury is authorized to One of my first votes as a Member of Congress was to accept from such person and cover into the Treasury as miscel support the economy bill of the President of the United laneous receipts remittance of such part of the compensation of States, thereby reducing my salary and that of my colleagues such person as would not be paid to him if such diminution of from $10,000 to $8,500. Under authority granted by us, sal compensation were not prohibited. aries of United States Senators, Cabinet members, Congress Here, Mr. Chairman and members of the Committee. is men, and all Federal employees, from the highest to the the list of dishonor. I now read the names of the Federal lowest, except where a constitutional inhibition prevented, judges from Ohio who have refused to take pay cuts from were cut. their salaries: United States Judges Samuel H. West, Paul We authorized this because the Nation was threatened Jones, John H. Killits, George P. Hahn, Benson W. Hough, with a crisis more serious than war. We did this to help and Robert R. Nevin, salary $10,000 each; and United States meet a direful situation. We did this so that the Nation Circuit Judge Smith Hickenlooper, salary $12,500. and all of our people might be led out of a wilderness of The Temple of Delphi was scarcely more sacred to the chaos and disaster into the promised land of contentment ancient Greeks than the Federal judiciary is to many of our and economic security. fellow citizens. As a lawyer I have lawsuits for clients pend I denounce Federal judges of my State, and will name ing in every court of my State-the Supreme Court of Ohio, names and tell facts. They have refused to heed the de the court of appeals, and the common-pleas court of my mands of the times. They have been greedy and avaricious. county, and in the United States court. I respect and ad The bailiffs who refer to them as the honorable court, and mire just and honorable judges. In fact, my father was for the scrubwomen who on hands and knees, in the darkness of more than 10 years a common-pleas judge in Ohio. What I night, clean their judicial offices so that they may in all say here, therefore, on my responsibility as representative ot. dignity and smugness at 9:30 o'clock in the morning com the people of my State, I say in a spirit of duty and not in a mence their judicial duties in immaculate surroundings, have spirit of rancor. had their pay cut. The scrubwoman, the bailiff, the .ele It is a fact that Federal judges of our country have vator boy, all employees, each month and from now on as _usurped powers and functions and have too frequently made long as the need exists, regularly out of the small wage our a mockery of trial by jury. Federal judges have become Government pays them, make their contribution of 15 per not a group of public servants, but a group of public dicta cent to bring contentment and economic security to all of tors and tyrants. Their present refusal in this emergency, our people. when millions of men and women are unemployed and chil Edmund Vance Cooke, the poet, wrote: dren are underfed, to accept the salary cut of 15 percent is But to be a scrubwoman, with four simply further indication that these United States judges Babies, or more, have the effrontery to deem themselves above the will of Every day, every day, setting your back the people and in a class by themselves-and for themselves. On the rack, My investigation at the Department of Justice in regard. And all your reward forever not quite A full bite to 151 United States judges and 40 United States circuit Of bread for your babies. Say! judges shows that only 3 have made remittances from their In the heat of the day salaries to the Secretary of the Treasury. There are 3 patri You might be a hero to head a brigade. otic, unselfish United States judges in the country, and 188 But a hero like her? I'm afraid! I'm afraid! judicial hogs. These judges, appointed for life, are secure in the knowl Mr. Chairman, there are two ways by which usurpation of edge that until they are 70 years old they may hold forth as dictatorship of the Federal courts of this country can be judges at salaries of $10,000 and more. Upon attaining the checked. Federal judges were not meant to be lawmakers, age of 70 tney no longer need appear in court and spend judges, and executioners all in one, and without responsi 4 or 5 hours on the bench, but by reason of the beneficence bility to the people of our country. Usurpation of dictator of our Government may retire at full pay and receive that· ship by the Federal courts of our land will be checked either full pay as long as they live. by direct election of Federal judges or by people taking the Unfortunately, article III of the Constitution provides law into their own hands. Let us hope for the former that the compensation of United States judges shall not be method. diminished during their continuance in office. The gentle Let us also hope that an outraged public, and bar associa- · man from Virginia [Mr. WOODRUM] has rendered needful tions in meetings and newspapers in editorials, will call public service by introducing a resolution to amend the upon Federal judges to take the 15 percent cut that all Constitution by striking out this inhibition. [Applause.] others were compelled to take. [Applause.] These judges, appointed for life, not responsible nor ac [Here the gavel fell.] countable to the people, demonstrate by their failure to Mr. AYRES of Kansas. Mr. Chairman, I yield 10 minutes voluntarily repay any part of their Salary into the Treasury to the gentleman from Minnesota [Mr. SHOEMAKER]. of the United States, that they regard themselves above a Mr. TABER. Mr. Chairman, I yield the gentleman from law which is being complied with by all other Federal of Minnesota 5 minutes. ficials and appointees from the highest to the lowest. (Mr. SHOEMAKER asked and was given permission to revise I say from the highest. Article II of the Constitution of and extend his remarks in the RECORD and include therein the United States says that the compensation of the Presi- House Resolution No. 116.) 2894 CONGRESSIONAL RECORD-HOUSE MAY 4 Mr. BUSBY. Mr. Chairman, I make the point of order I may say that the very judge who sentenced me to the that there is not a quorum present. I think this is going to penitentiary, not because he wanted to sentence me to the be a good speech. penitentiary-he did not want to sentence me to a peniten The CHAIRMAN (Mr. McREYNOLDs). The Chair will tiary or to send me to jail. He gave me 1 year and 1 day, count. [After counting.] One hundred and ten gentlemen and then turned around to the court room and to me and present, a quorum. said: Mr. BUSBY. Mr. Chairman-- I do not believe, Mr. SHOEMAKER, that you are a criminal. How The CHAIRMAN. The Chair has kept the House counted ever, I do not want to make a martyr out of you, and therefore I with a view to being able to state how many gentlemen are am going to suspend your prison sentence of 1 year and 1 day and in the Chamber. place you upon probation for a period of 5 years in lieu thereof. Mr. BUSBY. Mr. Chairman, I have some rights in this He himself said I was not a criminal. He himself, over matter, and they are not to be dealt with in this sort of his own signature, wrote a letter to the Department of Jus way. tice and to the Federal Parole Board and told them in one Mr. GOSS. Mr. Chairman, I make the point of order letter that I was in no sense the criminal type, and then that there can be no appeal from the decision of the Chair. turned around 2 weeks later and wrote another letter con Mr. BUSBY. I ask for tellers on the count of the Chair. demning me and calling me all kinds of names and saying The CHAIRMAN. The Chair will state for the informa that I was not liked in my own community, and that if I tion of the Committee that the Chair has been sitting here was paroled at all I should be paroled outside of the State counting the House, and has kept a memorandum of the of Minnesota, and in that case he would agree to it. In number. There were 92 gentlemen in the House when the other words, I would be a good citizen, he said over his own point was made, and some 15 or 20 have come in from the signature, in some other State, but I would be a criminal if cloakroom since. left at large in the State of Minnesota. Mr. BUSBY. Mr. Chairman, I ask for tellers on the What was my crime? My crime was to help and try to count of the Chair. assist in cleaning up the corrupt politicians in the State The CHAIRMAN. It is only necessary for the Chair to of Minnesota, if you please, and among- them I am going to announce the number present. name a few for your approval. Mr. BUSBY. I ask for tellers on the count of the Chair. There was F. B. Kellogg, to start with. Bill Mitchell, who Does the Chair ref use to proceed? deliberately beat the United States Government out of about Mr. GOSS. Mr. Chairman, I make the point of order $3,000,000 of Jim Hill's inheritance taxes, who was appointed there can be no appeal from the decision of the Chair. Attorney General for being a good crook. G. A. Youngquist, the Attorney General of the State of Minnesota, who was The CHAIRMAN. The point of order is sustained, and within 6 weeks of the State penitentiary in the State of the gentleman from Minnesota will proceed. Minnesota and resigned as attorney general of the State Mr. BUSBY. Very well. and was appointed Assistant Attorney General of the United Mr. SHOEMAKER. Mr. Chairman, we have just listened States. Arch Coleman, one of the authors of the infamous to a very interesting discourse on the Federal judges of the Brooks-Coleman Act of Minnesota, who was run out of the United States. We have also listened to some very interest State and was made First Assistant Postmaster General. ing facts in regard to the Negro situation and communism. Pierce Butler was put on the Supreme Bench. Walter New We also listened to some very interesting facts regarding ton was made Secretary to the President. Bill Schilling was the situation in Cuba and the Machado government. put on the Farm Board. Thatcher, at $25,000, was put on I shall try to touch briefty on all three of these points. the Grain Corporation. Akerson was taken off the Min First of all, I want to say that the farmers throughout neapolis Tribune and brought down here and made the the United States of America, and particularly in the west official liar for the administration. [Laughter.] ern part of the United States, are today in what might be They accused me of being behind the movement to get rid termed open revolt. Not only the depression has brought of these fellows in Minnesota, and they put them on the about this condition, but the decisions that have been Federal pay roll down here. The stunt was to get rid of handed down by the judiciary are largely responsible for Shoemaker. They had to get rid of Shoemaker in any case, the situation that exists throughout this country today, not and I want to state to you that the banker I referred to as only with regard to the Scottsboro and Crawford cases, but " robber of widows and orphans " was president of the State with regard to the property rights that have been so upheld Bankers' Association, a schoolmate of the Federal judge, by our judiciary .system, while our great human rights have also a schoolmate of the brother of the Federal judge, a been trampled under foot, and I speak not as one who is schoolmate of the then sitting Congressman in this House, inexperienced. who could not even let me alone when I was in the peni I speak as one who has gone through some of the tyr tentiary but had to proceed to persecute me there. anny and autocracy at the hands of Federal judges, and I I am going to read into the RECORD a confidential letter wish at this time to bring to your attention the fact that to the warden after they had me locked up in the peniten I do not in any way sustain or uphold the action of tQese tiary. It reads as follows: Iowa farmers in their conduct with regard to the judge out RED WING, MINN., Apr.il 13, 1931. there the other day, but I do say that this thing can be Mr. T. B. WHITE, amiably straightened out and handled out there if a little Warden United States Penitentiary, Leavenworth, Kans. intelligence is applied to that situation, for these people, MY DEAR WARDEN WHITE: I wish to write you confidentially in after all, are fighting for that one thing for which our regard to FRANCIS H. SHOEMAKER, who is now confined to your fighting forefathers came to America, namely, to establish institution under sentence for 1 year and 1 day, imposed by Judge Sanborn, of Minnesota, for violation of the postal laws. and maintain their homes. These people are fighting for I have been informed by several parties who have heard from homes, and this is the first instinct in the heart of a human SHOEMAKER, to the effect that he has been feigning sickness upon breast. several occasions since he arrived at the institution. I want to say that the decisions that have been handed I have investigated as to his past conduct and have learned that he is in the habit of complaining of sickness every time the down by. our judiciary throughout the past have been deci Government has placed some ,requirements upon him. I am, sions largely in the interest of the property class or of therefore, convinced that he has been feigning sickness at your property rights, while human rights have been trampled institution in order to get away from work, as required by your regulations. under foot. This matter is being called to your attention at this time, as I Mr. KENNEY. Will the gentleman yield? understand that the prisoner has made application for parole, Mr. SHOEMAKER. I will, for a short question. which will be considered at the next meeting of the Board. Mr. KENNEY. Has the gentleman asked for an investi When this man is not confined to a prison he is the most active and vigorous animal, and is on the go by day and night, preaching gation of our Federal courts? his radical doctrines in order to " hoodwink " the ignorant into Mr. SHOEMAKER. No; but it is very likely that he will. contributing money and support to his cause. i933 CONGRESSIONAL RECORD-HOUSE 2895 I would appreciate very much if you will cause an investigation fine. For over a year this woman has spent every penny to be made as to the alleged sickness of this man, and let me that she could get. Their family means were depleted. She know as to your findings, $ince I am interested to learn some thing about this man's record while he is confined at your insti was to give herself up last week to the Federal marshal in tution. the State of Minnesota, but rather than face the disgrace of With kindest personal regards, I am, going to prison, rather than have the family face the dis AUGUST H. ANDRESEN, grace of having their mother in the penitentiary, the family Congressman Third District, Minnesota. put the garden hose on the exhaust pipe of their automobile Now, what business is it of the Congressman to tell the and drove out into the country and turned on the motor, warden down there what to do. I do not think there is any and turned the exhaust into the car, and there is the picture man in this Congress-I am assuming that-that would take of the four in the family who died at one time as a result of on himself that authority. It may be of interest to you the manipulations and machinations of a Federal court that to have the confidential answer that the Congressman got to is supposed to dispense justice in this great land of ours. I his letter. It is from the warden, and reads as follows: say to you the time has come to call a halt on this proposi UNITED STATES PENITENTIARY, tion. Leavenworth, Kans., April 19, 1931. Now, with regard to the speech just made by our worthy Hon. AUGUST H. ANDRESEN, Red Wing, Minn. colleague, HAMILTON FISH, of New York, regarding the Cuban DEAR CONGRESSMAN: I am in receipt of your letter of April 13, situation, I wish to emphatically state that I am not here 1931, inqUiring into the health of our FRANCIS H. SHOEMAKER, either to condemn or defend the Machado government of registration no. 38163. Mr. SHOEMAKER was received here February 1, 1931, and will be Cuba, but I do happen to know that in this country there eligible for parole on April 29, 1931. are at work revolutionary forces who are conniving daily for In a report from our prison assistant physician, Dr. K. E. Conk the sole and specific reason of fomenting an armed inter lin, I find this paragraph: "His (SHOEMAKER'S) physical condition vention of the Cuban Government through the activities of is good and is not giving him a bit of trouble; he states him.self that he is not sick." these revolutionists. I have been informed that several SHOEMAKER'S record since he has been here is good, as I find no armories located in several Southern States have been com reports for violation of rules against him. pletely depleted of their arms and ammunition whieh have Thanking you for the information and your interest in the been stolen and taken to CUba for the purpose of fostering matter, I am, Very truly yours, and bringing about a revolution. As I understand the situa F. L. MORRISON, Acting Warden. tion, the entire Cuban situation resolves itself into a battle I had to be called in about every week and have of two huge financial groups in the United States of America a physical examination because the Congressman wanted who are striving to gain control of the natural resources of it. [Laughter.] He was so interested in my welfare and Cuba. With one group backing the present Machado regime hoped that I might die while there. and the other group backing and financing the revolution This tyrannical judge who sentenced me was instrumental ists, and in neither case are civil rights considered nor is in the passage of the Brooks-Coleman Act, which gave the the welfare of the Cuban people given any thought, and for railroad and warehouse commission the right to make that reason I wish to insert into the RECORD at this time rates on street-car lines in Duluth and the Twin Cities. a resolution which I introduced into this House on April 21, When they had the power they raised the fare from 5 cents and which was referred to the Committee on Rules. The to 10 cents, taking that amount out of the dinner pails resolution reads as fallows: of those who ride on the street-car lines. Whereas it is of record in the courts of Atlantic County, N.J., that certain underworld characters and Cuban conspirators were Now, I have here a photograph of four people, a father heading an expedition to Cuba for the purpose of carrying on a and mother and two children, who have been harangued revolution against the government of President Machado, the and murdered and driven to suicide by the despotic, tyran duly constituted and constitutional authority of the Republic of nical rule over the people of Minnesota. Here it is. Look Cuba, were apprehended and their arms and ammunition were destroyed by New York and New Jersey police officials; and at that picture of a father and ..mother and two children. Whereas Dr. Miguel Gomez, formerly mayor of Habana, Cuba, Last week they were harangued and driven to suicide simply is now in New York the avowed and acknowledged leader of the because the woman refused on the jury to give the judge revolutionary forces attempting to overthrow the duly consti a conviction on the case of W. B. Foshay. tuted government of President Machado; and Whereas those so-called " political refug~es ", masking under the Mr. DICKSTEIN. Will the gentleman yield? guise of exiles, are forming societies and collecting funds to carry Mr. SHOEMAKER. I will yield for a short question. on the revolutionary movement, this activity being more particu Mr. -DICKSTEIN. Is this judge still on the bench? larly evidenced by a widely heralded meeting held in Miami, Fla .• on March 22, 1933, at which the following officers were elected: Mr. SHOEMAKER. He has been promoted to the circuit Dr. Carlos De La Torre, president; Dr. Roberto Mendez Penate, court of appeals. vice president; and Louis Barraras, secretary; and among those Mr. DICKSTEIN. The gentleman has stated enough attending this meeting of revolutionary conspirators were Dr. Gomez, Dr. Juan Espinosa, Carlos Pelaez, Mario G. Menocal, Dr. facts; why does not he introduce a resolution to impeach Pedro Martinez Fraga, Dr. Santiago Verdeja, Dr. Raymon Grau him? San Martin, Dr. Recordo Dolz, Guillermo Barrientos, Dr. Carlos Mr. SHOEMAKER. He is the judge who sentenced me. Mendieta, and Dr. Aurelio Hevia. In addition, the meeting was Mr. DICKSTEIN. Does not the gentleIIJ.an think the attended by Dr. Carlos Saladrigtas, a known member of the A.B.C. secret society. Immediately after the adjournment of this Judiciary Committee would give consideration to these facts? meeting Dr. Miguel Fomez left for New York to initiate and Mr. SHOEMAKER. I should be very glad to submit to take charge of the revolutionary movement there aimed at the the Committee on the Judiciary any such evidence they may duly constituted and functioning administration of President Machado, of the Republic of Cuba; and desire. Mrs. Genevieve Clark was on the jury and was Whereas it is becoming evident and of current knowledge that asked whether she knew W. B. Foshay, the defendant. She those revolutionary activities are being fostered and financed by said she did not know him. She voted to acquit Foshay. agents of a foreign power not over friendly to the Government of the United States, for the purpose of distracting public attention Several weeks after the jury disagteed they sent out their from contemplated movements of their own; and bunch of snoopers and espionage agents and found that at Whereas these activities have a tendency to embarrass the Gov some time previously, several years before, this poor woman ernment of the United States and are against the peace and dig had worked for 2 weeks along with two or three hundred nity of the Government of the United States, being contrary and in open violation of its laws and treaties, as well as the lu'ws of other women who were hired especially to address some its sovereign States: Therefore be it envelopes containing advertising matter that was being sent Resolved, That a committee of five Members of the House of out. She told the truth when she said she did not know Representatives be appointed to investigate the Unlawful and secret plottings of the several revolutionary organizations or indi Foshay. I have talked with this woman since. viduals who are now enjoying the asylum and sanctuary of the They claimed that because she worked for Forshay she Government of the United States. should have volunteered that information, and they brought SEC. 2. The committee, or any authorized subcommittee her up for contempt of court and sentenced her to 6 months thereof, is authorized and directed to sit and act at such times and places as may be necessary, to hold hearings and conduct and $1,000 fine. The case :finally went to the circuit court investigations of the revolutionary activities particularly referred of appeals. That court upheld the sentence, but cut o:ff the to in thiB resolution. 2896 CONGRESSIONAL RECORD-HOUSE MAY 4 SEC. 3. The committee ls empowered to subpena persons, rec in a court in Mississippi, that Negro does receive fair treat ords, documents, minutes of meetings, summon and swear wit nesses, and to secure data on any or all information, as may be ment at the hands of the court and of the jury. Further, deemed necessary to aid the committee in the ascertainment o! in my practice as a prosecuting attorney, and I say this the facts, particular attention to be directed to the laxity of the seriously and truthfully, a poor defenseless Negro, when various executive and judicial departments in enforcing the pro visions of the Constitution, the treaties and laws of the United brought into the court in which I practiced and where I States relative to the suppression of the herein-named revolu had to prosecute him, received more consideration at my tionary activities. hands, more favorable consideration, if you please, than did SEC. 4. The committee shall report to Congress before the ad many white men who were guilty of some serious offense journment of the special session now pending all findings that they may have determined at that time, a final report to be made with able counsel and means to defend them, because we on the first day of the first regular session of the Seventy-third recognized the fact that he was poor and defenseless. Congress, the final report to contain the complete results and Mr. LEE of Missouri. Mr. Chairman, will the gentle findings of its investigations, together with such recommenda tions for legislation as it shall deem advisable. When its report man yield? is led as provided the committee shall cease to exist. Mr. COLMER. Since I have refused to yield over here, My aim in introducing this resolution, and the purpose I wish the gentleman would let me finish. that I hope it will accomplish, is that in case investigation Mr. LEE of Missouri. I do not blame the gentleman. is to be made of Cuba that it be a thorough investigation, Mr. COLMER. Oh, very well; I yield. investigating all parties concerned in the controversy. Mr. LEE of Missouri. I ask the gentleman if such The CHAIRMAN. The time for the gentleman from speech~s of Mr. FlsH do not tend to cause a lot of Negroes Minnesota has expired. to get in trouble who ought to be good Negroes, like we have Mr. AYRES of Kansas. Mr. Chairman, I yield 6 minutes them conduct themselves in our country? to the gentleman from Mississippi [Mr. CoLMERJ. Mr. COLMER. I will say to the gentleman that I was Mr. GOSS. I yield the gentleman 4 minutes. just coming to that point. I understand the gentleman Mr. COLMER. Mr. Chairman and members of the Com from New York is a lawyer. I may be misinformed about mittee, I believe my record here up to this time will bear that. I assume that if he is a lawyer, he is an able lawyer, out the fact that I have not bored this House with any as he is an able speaker, but I say to the gentleman, if he . long-winded or unnecessary speeches, and I regret keenly is a lawyer, then he knows that no good purpose could be today that I feel it necessary to rise to answer the gentle served by such speeches as this and: by waving the red man from New York [Mr. FlsHJ who made a speech here :flag of sectionalism and raee. There can be no good pur a few moments ago with reference to the racial question, pose served by this. These men are to be tried by the with particular reference to the Scottsboro, Ala., and Vir courts of a sovereign State, and what the gentleman from ginia (Crawford) cases. I regret that the gentleman saw New York thinks about it is immaterial; just as immate fit to make his speech, and I regret the necessity, as I view rial as it may be what I might think about a case that was it, for answering his effort. While this country is in the being tried in the sovereign State of New York. I want to midst of the most hectic days it has ever witnessed, in the appeal to the patriotism of the gentleman and those who greatest crisis in its history, when a great and substantial live north of the line and who reside temporarily here in piece of legislation affecting the economic situation of the the House on the other side of the aisle, that if you want to Nation is being considered, I do not think, nor do I be help the Negro, this is not the way to do it, as the gentleman lieve a majority of the membership think, that this is a from Missouri [Mr. LEEJ has suggested. proper time to bring up a question of that kind. If there I recall reading that about a year ago the distinguished ever was a time when we need a unified, patriotic American gentleman from the State of New York [Mr. FisHJ started citizenship to try to save this country for posterity, that time out on some · kind of an investigating committee. I do not is now. I do not believe this is any time to wave the red know what that cost the taxpayers of America, but I do :flag of racial prejudice or to introduce such a subject before recall that they went to the principal cities of the United this House. I am at a loss to understand why the gentle States. They stopped in the finest hotels. They were look man should have seen fit, in the consideration of this im ing for what? Looking for Communists. I am informed portant piece of legislation, to inject into the discussion a that on one occasion they actually surrounded a warehouse matter that is entirely foreign. What good purpose is to be over at Baltimore. They called for the detectives and the served thereby? I asked the gentleman from New York police. They threatened to call for the Army, and perhaps repeatedly to yield to me in order that I might ask some the marines, and when they got down there and sur very pointed questions. I was unsuccessful in that, and I rounded it, what did they find? A few crates of rotten think I am justified, therefore, in making this brief reply. cabbage. [Laughter and applause.] What does the gentleman from New York hope to accom I can see my distinguished friend from New York now plish by discussing a case that is being tried in the court.s in one of these fine hotels with all the luxuries surround of the sovereign State of Alabama (the Scottsboro case)? ing him; I can see him down there with a :flashlight look Does the gentleman hope to influence the jury that will ing under the bed and looking under the chairs and all try that case? Does the gentleman hope to in:fiuence the the furnishings in the hotel, looking for Communists judge in granting his instructions to the jury that will try [laughter and applause], while, as a matter of fact,. the that case? Did the gentleman hope to stop this com conduct of the Government under the regime of the party munism, to which he referred, by advertising in the news to which the gentleman from New York belongs was mak papers of the land what he considers an injustice, and ing more Communists every day than has ever been known about which he says he knows no more than Will Rogers in Lhis country, just as the distinguished gentleman's con knows by reading it in the newspapers? duct today is calculated to encourage communism and dis Mr. BLANCHARD. Mr. Chairman, will the gentleman content in the land. yield? But my purpose in ·arising is not to condemn the distin Mr. COLMER. Since the gentleman from that side did guished gentleman from New York no more than it is now not see fit to yield t.o me, I decline to yield. my purpose to appeal to sectionalism or racial superiority. Mr. BLANCHARD. I am a new Member and I will My appeal in this hour of need, in this hour of distress, in move to the other side if that will help. this hour of crisis, is to patriotism and to common sense. Mr. COLMER. That would not help at all. Mr. Chair- And may I not express the hope in conclusion that, at least man, it so happens that I had been a prosecuting attorney during the crisis of the country, misguided Members of the for some 12 years immediately prior to coming to this House. House as well as the citizens generally will refrain from I think I know something about the laws and the practice injecting such highly controversial issues into consideration and the procedure in the trial of these cases. I do not rise either in the House or in the country? If there ever was a here now to defend the administration of justice in the time in the history of the country when the Nation needed States of Alabama, Virginia, or Mississippi, but I say to the the united, whole-hearted, fervent, patriotic cooperation of gentleman from New York that if a Negro is being tried its citizens of all races, that time is here now. [Applause.] 1933 CONGRESSIONAL RECORD-HOUSE 2897 The CHAIRMAN. The time of the gentleman from Mis rupt institutions. Under cover, the predatory international sissippi [Mr. COLMER] has expired. bankers have been stealthily transferring the burden of the Mr. TABER. Mr. Chairman, I yield the balance of my Federal Reserve debts to the people's Treasury and to the time, 20 minutes, to the gentleman from Pennsylvania [Mr. people themselves. They have been using the farms and McFADDEN]. the homes of the United States to pay for their thievery. Mr. McFADDEN. Mr. Chairman, the United States is That is the only national emergency there has been here bankrupt. It has been bankrupted by the corrupt and dis since the depression began. Someone asked Mr. Ogden honest Federal Reserve Board and the Federal Reserve Mills what caused the depression. He answered quite truth banks. It has repudiated its debt to its own citizens. Its fully, " The Federal Reserve lent so much money abroad chief foreign creditor is Great Britain, and a British that it broke down the System." Mr. Chairman, those who bailiff has been at the White House and British agents are have lost everything they possessed through the evil prac in the United States Treasury making inventories and ar tices of the Federal Reserve Board and the Federal Reserve ranging terms of liquidation. In close cooperation with banks should at least be told the truth about how it hap the British bailiff a French bailiff has been standing by pened. The veterans of the World War should know that with a staff of experts and 25 of the leading French jour the Federal Reserve Board and the Federal Reserve banks nalists. The " united front " has arrived at Washington. paid the dole in England, and are still paying it, and that Mr. Chairman, the Federal Reserve Board has offered to that is the reason why the resident agents of England in this collect the British claims in full from the American public country have cut the pensions of the United States soldiers by trickery and corruption, if Great Britain will help it to $400.000,000 a year. conceal its crimes. The British are shielding their agents, The week before the bank holiday was declared in New the Federal Reserve System, because they do not wish that York State the deposits in New York savings banks were system of robbery destroyed here. They wish it to con greater than the withdrawals. There were no runs on New tinue for their benefit. By means of it Great Britain bas York banks. There was no need of a bank holiday in New become the financial mistress of the world. She bas re York or of a national holiday. Roosevelt did what the gained the position she occupied before the World War. international bankers ordered him to do. When Sir Ronald For several years she bas been a silent partner in the Lindsay was at Warm Springs, Ga., when Franklin D. business of the Federal Reserve Board and the Federal Roosevelt violated the Logan Act, the obnoxious Lindsay Reserve banks. Under threats of blackmail, or by bribery, was promised that the United States would be taken oft or by their native treachery to the people of the United the gold standard" without debate" and "by surprise" and States, the officials in charge of the Federal Reserve banks that was what England wanted and was insisting upon. unwisely gave Great Britain immense gold loans of our Sir Ronald Lindsay hotfooted it to London to tell the good national-bank depositors' money. They did this against the news to the English Cabinet. They did not trust the mail law. They gave England gold loans running into hundreds or their favorite instrument, the transatlantic telephone. of millions of dollars. Those gold loans were not single Do not deceive yourself, Mr. Chairman, or permit yourself transactions. They were revolving loans. They gave Great to be deceived by others into the belief that Roosevelt's dic Britain a borrowing power in the United States of billions. tatorship is in any way intended to benefit the people of She squeezed billions out of this country by means of her the United States. He is preparing to sign on the dotted control of the Federal Reserve Board and the Federal Re line. He is preparing to cancel the war debts by fraud. He serve banks. As soon as the Hoover moratorium was an is preparing to internationalize this country and to destroy nounced-and it was Great Britain who instructed Hoover our Constitution itself in order to keep the Federal Reserve how to declare it-Great Britain moved to consolidate her Board and the Federal Reserve banks intact as a money gains. After the treacherous signing away of American making institution for foreigners. rights at the 7-power conference at London in July 1931 Mr. Chairman, I have received an inquiry from one of which put the Federal Reserve System under the control of my constituents in regard to his right to have gold and gold the Bank for International Settlements, Great Britain began tificates, silver and silver certificates, and all other forms to tighten the hangman's noose around the neck of the of coin and currency issued by the United States Govern United States. She abandoned the gold standard and em ment in his personal possession or in the possession of his barked upon a campaign of buying up the claims of for agents. Mr. Chairman, I have informed my constituent eigners against the Federal Reserve banks in all parts of, the that he has a constitutional right to have gold and silver world. She bas now sent her bailiff, Ramsay MacDonald, in his possession, either in the form of bullion or of coins, here to get her war debt to this country canceled. She and that he has a right to have United States currency of has a club in her hand. She has title to the gambling debts every description in his possession, and that his right to hold which the corrupt and dishonest Federal Reserve Board and such private property is absolute and that such private the Federal Reserve banks incurred abroad. Ramsay Mac property may not be taken away from him without due Donald, the Labor Party deserter, has come here to compel process of law. the President to sign on the dotted line and that is what Mr. Chairman, I see no. reason why citizens of the United Roosevelt is about to do. Roosevelt will endeavor to conceal States should be terrorized into surrendering their property the nature of his action from the American people. But he to the international bankers who own and control the Fed will obey the international bankers and transfer the war eral Reserve Board and the Federal Reserve banks. The debt that Great Britain should pay to the American people, statement that gold would be taken from its lawful owners to the shoulders of the American taxpayers. if they did not voluntarily surrender it to private interests ·Mr. Chairman, the bank holidays in the several States shows that there is an anarchist in the Government. The were brought about by the corrupt and dishonest Federal statement that it is necessary for the people to give their Reserve Board and the Federal Reserve banks. Those insti gold-the only real money-to the banks in order to pro-· tutions manipulated money and credit and caused the States tect the currency is a statement of calculated dishonesty. to order bank holidays. Those holidays were " frame-ups." By his unlawful usurpation of power on the night of They were dress rehearsals for the national bank holiday March 5, 1933, and by his proclamation, which in my which Franklin D. Roosevelt promised Sir Ronald Lindsay opinion was in violation of the Constitution of the United that he would declare. There was no national emergency States, Roosevelt divorced the currency of the United States here when Roosevelt took office except the bankruptcy of from gold, and United States currency is no longer protected the Federal Reserve Board and the Federal Reserve banks by gold. It is, therefore, sheer dishonesty to say that the a bankruptcy which has been going on under cover for sev- people's gold is needed to protect the currency. Roosevelt eral years and which has been concealed from the people so ordered the people to give their gold to private interests- that the people would continue to permit their bank de that is, to banks-and he took control of the banks, so that posits and their bank reserves and their gold and the funds all the gold and gold values in them or given into them of the United States Treasury to be impounded in the bank- might be handed over to the predatory international bankers 2898 _CONGRESSIONAL RECORD-HOUSE MAY 4 who own and control the Federal Reserve Board and the committed criminal offenses against.the United States Gov Federal Reserve banks. Roosevelt ~ in bis lot with the ernment, including- the offense of making false entries on usurers. He agreed to save the corrupt and dishonest Fed their books and the still more serious offense of unlawfully eral Reserve Board and the Federal Reserve banks at the abstracting funds from the United States Treasury. Roose expense of the people of the United states. He took advan velt's gold raid is intended to help them out of the pit they tage of the people's confusion and weariness and spread a dug for themselves when they gambled away the wealth and dragnet over the United states to capture everything of savings of the American people. value that was left in it. He made a great haul for the The international bankers set up a dictatorship here be international bankers. cause they wanted a dictator who would protect them. They Mr. Chairman, the terms of Roosevelt's surrender were wanted a dictator who would issue a proclamation giving the arranged between hhnself, certain international bankers, Federal Reserve Board and the Federal Reserve banks an and Sir Ronald Lindsay. A British paper has lately said absolute and unconditional release from their contractual that Roosevelt refrained from accepting responsibility be liability to redeem their special currency in gold or lawful fore he acquired authority in all matters except the matter money at any Federal Reserve bank. Has Roosevelt released of the war debts. So you see, Mr. Chairman, before entering any other class of debtors in this country from the necessity the Presidency he took up the matter of the war debts. He of paying their debts? Has he made a proclamation telling violated the terms of the Logan Act. the farmers that they need not pay their mortgages? Has Mr. Chairman, statements in the newspapers to the effect he made a proclamation to the effect that mothers of starv that the conferences now taking place are mere academic ing children need not pay their milk bills? Has he made a and preparatory discussions between officials of the United proclamation relieving householders from the necessity of States Government and representatives of foreign nations paying rent? Not he. He has issued one kind of proclama are false. The Prime Minister of England came here for tion only, and that is a proclamation to relieve international money. He came here to collect cash. He came here with bankers and the foreign debtors of the United States Federal Reserve currency and other claims against the Fed Government. eral Reserve System which England has bought up in all Mr. Chairman, the gold in the banks of this country be parts of the world and he has presented them for redemp longs to the American people, who have paper money con tion in gold. tracts for it in the form of national currency. If the Federal Mr. Chairman, I am in favor of compelling the Federal Reserve banks cannot keep their contracts with United Reserve Board and the Federal Reserve banks to pay their States citizens to redeem their paper money in gold or lawful own debts. I see no reason why the general public should money, then the Federal Reserve banks must be taken over be forced to pay the gambling debts of the international by the United States Government and their officers must be bankers. put on trial. There must be a day of reckoning. If the By his action in closing the banks of the United States, Federal Reserve banks have looted the Treasury, so that the Roosevelt seized the gold value of the f arty billions and more Treasury cannot redeem the United States currency for of bank deposits in the United States banks. Those deposits which it is liable in gold, then the Federal Reserve banks were deposits of gold values. By his action he has rendered must be driven out of the Treasury. them payable to the depositors in paper money only, if pay Mr. Chairman, a gold certificate is a warehouse receipt able at all, and the paper money he proposes to pay out to for gold in the Treasury, and the man who has a gold cer bank depositors and to the people generally in lieu of their tificate is the actual owner of a corresponding amount of hard-earned gold values is of no intrinsic value in itself and, gold stored in the Treasury and subject to his order. As heing based on nothing into which the people can convert it, Charles N. Fowler, a former Member of this House, said the said paper money is of negligible value altogether. It is when he was Chairman of the House Banking and Currency paper money which is not convertible into gold or silver. Committee, "A gold certificate is its own redeemer.'' It is the money of slaves, not of free men. If the people of Now comes Roosevelt, who seeks to render the money of the United States permit it to be imposed upon them at the the United States worthless by unlawfully proclaiming that will of the credit masters, the next step in their downward it may not be converted into gold at the will of the holder. progress will be their acceptance of orders on company stores for what they eat and wear. Their case will be simi When Daniel Webster was in the Senate, he said, with lar to that of starving coal miners. They, too, will be paid rugged honesty: with orders on company stores for food and clothing, both I profess to be a bulllonist in the usual and accepted sense of that word. I am for a specie basis for our circulation and for of indifferent quality, and be forced to live in company specie as a part of the circulation so far as it may be prac~ owned houses, from which they may be evicted at the drop ticable and convenient. I am for giving no value to paper merely of the hat. More of them will be forced into conscript labor as paper. I abhor paper; that is to say, irredeemable paper-paper camps under military supervision. that may not be converted into gold and silver at the will of the holder. At noon on the 4th of March 1933 Franklin Delano Roose velt, with his hand on the Bible, took an oath to preserve, This House and this Government should stay where God protect, and def end the Constitution of the United States. put them. We should maintain our intellectual honesty At midnight on the 5th of March 1933 he confiscated the and our dignity. We should be able at all times to say property of American citizens. He took the currency of the with Webster: United States ofI the gold standard of value. He repudiated I am where I have been, and ever mean to be, standing on the the internal debt of the Government to its own citizens. He platform of the Constitution-a platform broad enough and firm destroyed the value of the American dollar. He released, or enough to uphold every interest of the whole country. endeavored to release, the Federal Reserve banks from their Roosevelt's next haul for the international bankers was contractual liability to redeem Federal Reserve currency in a reduction in the pay of all Federal employees. The poor gold or lawful money on a parity with gold. He depreciated clerk in a Government office is compelled to give up 15 per the value of the national currency. The people of the United cent of his salary while the international bankers are pre States are now using irredeemable paper slips for money. sented with all the gold in the country. Next in order are The Treasury cannot redeem that paper in gold or silver. the veterans of all wars, many of whom are aged and infirm The gold and silver of the Treasury has unlawfully been and others sick and disabled. Those men had their lives given to the corrupt and dishonest Federal Reserve Board adjusted for them ·by acts of Congress determining the and the Federal Reserve banks. And the administration has amount of their pensions, and, while it is meet that every since had the effrontery to raid the country for more gold citizen should sacrifice himself for the good of the United for the private interests by telling our patriotic citizens that States, I see no reason why these poor people, these aged their gold is needed to protect the currency. It is not being CiVil War veterans, and war widows, and half-starved vet:.. used to protect the currency. It is being used to protect the erans of the World War should be compelled to g1ve uP their corrupt and dishonest Federal Reserve Board and the Fed pensions for the :financial benefit of the international vul eml Reserve banks. The directors of those institutions have tures who have looted the Treasury, bankrupted the country~ 1933 CONGRESSIONAL RECORD-HOUSE 2899 and traitorously delivered the United States to a foreign foe. crats who own and operate those un-American institutions There are many ways of raising revenue that are better have their gold safely bestowed, while the American people than this barbarous act of injustice. Why not collect from have a huge deficit in their Treasury. But Franklin D. the Federal Reserve Board and the Federal Reserve banks Roosevelt will never do anything to embarrass his financial the amount they owe to the United States Treasury in inter supporters. He will cover up the crimes of the Federal Re est on all the Federal Reserve currency they have taken from serve Board and the Federal Reserve banks. the United States Government? That would put billions of Before he was elected, Mr. Roosevelt advocated a return dollars into the United States Treasury. If Franklin D. to the earlier practices of the Federal Reserve System, thus Roosevelt is as honest as he pretends to be he will have that admitting its corruptness. The Democratic platform advo done immediately. And, in addition, why not compel the cated a change in the personnel of the Federal Reserve Federal Reserve Board and the Federal Reserve banks to Board and the Federal Reserve banks. Those remarks were disclose their profits and to pay the Government its share? campaign bait. AB a prominent Democrat lately remarked Until that is done, it is rank dishonesty to talk of maintain to me-and he is not very far away from where I am stand ing the credit of the Unifed States Government. ing at the present moment-" There is no new deal. The The Federal Reserve Board and the Federal Reserve banks same old crowd is in control." have stolen the income taxes and other taxes paid into the Mr. Chairman, the claims of the foreign creditors of the United States Treasury by Federal employees, and because Federal Reserve Board and th& Federal Reserve banks have that money and other public funds have been stolen by them no validity in law. The foreign creditors were the receiv and the United States Treasury is bankrupt, the Government ers-and the willing receivers-of stolen goods. They have clerk is told, "Yes; we know you paid your income tax, but received through their banking fences immense amounts of the Federal Reserve Board and the Federal Reserve banks currency, and that currency was unlawfully taken from took your money out of the United States Treasury and the United States Treasury by the Federal Reserve Board treated it as their own and they have it where Uncle Sam and the Federal Reserve banks. England discovered the cannot get it, so you, poor creature, must let your salary be irregularities of the Federal Reserve System quite early in reduced by 15 percent." its operation and through fear, apparently, the Federal Re Mr. Chairman, the salaries of Members of Congress may serve Board and the Federal Reserve banks have, for years, not be changed during the lifetime of the Congress in which suffered themselves to be blackmailed and dragooned into the Members participate. Nevertheless the salaries of Mem permitting England to share in the business of the Federal bers have been reduced. I object to this on constitutional Reserve banks. grounds. 'The Federal Reserve Board and the Federal Reserve banks Mr. Chairman, my own salary as a Member of Congress have unlawfully taken many billions of dollars of the public has been reduced, and while I am willing to give the part of credit of the United States#and have given it to foreign it that has been taken away from me to the United States sellers on the security of the debt paper of foreign buyers Government, I regret that the United States has suffered in purely foreign transactions, and when the foreign buyers itself to be brought so low by the vultures and crooks who refused to meet their obligations and the Federal Reserve are operating the roulette wheels and faro tables in the Fed Board and the Federal Reserve banks saw no honest way of eral Reserve banks that it is now obliged to throw itself on getting the stolen funds back into their own possession, they the mercy of its own legislators and charwomen, its clerks, decided by control of the Executive to make the American and its poor old pensioners, and to take money out of our people pay their losses. They likewise entered into a pockets to make good the defalcations of the international conspiracy to deprive the people of the United States of bankers who were placed in control of the Treasury and their title to the war debts and, not being able to do that in given a monopoly of United States currency by the misbe the way they intended, they are now engaged in an effort gotten Federal Reserve Act. to debase the American dollar so that foreign governments Mr. Chairman, I am well aware that the international will have their debts to this country cut in two and then bankers who drive up to the door of the United States Treas by means of other vicious underhanded arrangements, they ury in their limousines look down with scorn upon Members propose to remit the remainder. of Congress because we work for so little, while they draw Mr. Chairman, I am of the opinion that England should millions a year. The difference is that we earn or try to be left to secure redress from the original welchers on the earn what we get and they steal the greater part of their gambling debts of the Federal Reserve Board and the Fed takings. eral Reserve banks. Failing that, let her look to the inter Mr. Chairman, I do not like to see vivisections performed national bankers who undertook to finance the world-at a on human beings. I do not like to see the American people price-with the funds they stole from the United States used for experimental purposes by the credit masters of the Treasury. United States. They predicted among themselves that they So far as the United States Treasury is concerned, the would be able to produce a condition here in which Ameri gambling counters have no legal standing. The United can citizens would be completely humbled and left starving States Treasury cannot be compelled to make good the gam and penniless in the streets. The fact that they made that bling ventures of the corrupt and dishonest Federal Reserve assertion while they were fomenting their conspiracy against Board and the Federal Reserve banks. Still less should the the United States shows that they like to see a human being, bank deposits of the American people be used for that pur especially an American, stumbling from hunger as he walks. pose. Still less should the national currency have been Something should be done about it, they say; 5-cent meals made irredeemable in gold so that the gold which was or something! But Franklin Delano Roosevelt will not per massed and stored to redeem the currency for American mit the House of Representatives to investigate the condition citizens may be used to pay the gambling debts of the Fed of the Federal Reserve Board and the Federal Reserve banks. eral Reserve Board and the Federal Reserve banks for Eng Franklin D. Roosevelt will not do that. He has certain in land's benefit. The American people should have their gold ternational bankers to serve. They now look to him as the in their own possession, ·where it cannot be held under secret man higher up who will protect them from the just wrath agreement for any foreign central bank or world bank or of an outraged people. foreign nation. Our own citizens have the prior claim to it. Mr. Chairman, the international bankers have always The paper money they have in their possession deserves re hated our pensioners. A man with a small pension is a ward demption far more than the United States currency and of the Government. He is not dependent upon them for a credit which were stolen from the United States Treasury salary or wages. They cannot control him. They do not and bootlegged abroad. Why should foreigners be made like him. It gave them great pleasure, therefore, to slash preferred creditors of the bankrupt United States? Why the veterans. The veterans are counted upon to make up should the United States be treated as a bankrupt? This $400,000,000 a year to pay fo1· the defalcations of the Federal Government has assets. This Government has immense Reserve Board and the Federal Reserve banks. The pluto· sums due to it from the Federal Reserve Boord and the 2900 CONGRESSIONAL RECORD-HOUSE MAY 4· Federal Reserve banks. The directors of those institutions ported for reexport of gold in reasonable amounts for usual are men of great wealth. Why should the guilty escape the trade requirements of refiners importing gold-bearing ma consequences of their misdeeds? Why should the people of terials under agreement to export gold. This, Mr. Chair the United States surrender the gold value of their bank man, would permit foreign nations who hold our gold coins deposits and the gold value of their currency to pay the to send them here and have them melted down for reship gambling debts of the bankers? Why should Roosevelt ment back to Europe. promise foreigners that the United States will play the part Again, Mr. Chairman, by the terms of the Executive order, of a good neighbor " meeting its obligations "? Let the gold may be exported if it is actually required for the ful Federal Reserve Board and the Federal Reserve banks meet fillment of any contract entered into prior to the date of their own obligations. this order by an applicant who, in obedience to the Execu Every member of the Federal Reserve Board and every tive order of April 5, 1933, has delivered gold coin, gold Federal Reserve bank director should be compelled to dis bullion, or gold certificates. This means that gold may gorge, and every acceptance banker and every discount cor be exported to pay the obligations abroad of the Federal poration which has made illegal profits by means of public Reserve Board and the Federal Reserve banks which were credit unlawfully bootlegged out of the United States Treas incurred prior to the date of the order, namely, April 20, ury and hired out by the crooks and vultures of the Fed 1933. eral Reserve Board and the Federal Reserve banks should If a European central bank should send $100,000,000 in be compelled to disgorge. After the disgorgement, if the Federal Reserve currency to a bank in this country for re amount of the contributions is not sufficient to pay the demption, that bank could easily ship gold to Europe in gambling debts of the Federal Reserve Board and the Fed exchange for that currency. Such Federal Reserve currency eral Reserve banks, then let there be a capital levy to pay would represent " contracts entered into prior to the date of them. Yes, Mr. Chairman, if those gambling debts must be the order." If the Bank for International Settlements or paid, let them be paid by a capital levy so that the corpora any other foreign bank holding any of the present gambling tions which profited by the international bankers' exploits debt paper of the Federal Reserve Board and the Federal shall be the ones who pay the international bankers' gam Reserve banks should draw a draft for the settlement of bling debts. Gambling debts due to foreign receivers of such an obligation, gold would be shipped to them because stolen goods should not be paid by sacrificing our title to the debt contract would have been entered into prior to the the war debts, the assets of the United States Treasury, date of the order. So you see, Mr. Chairman, every provision which belong to all the people of the United States and seems to have been made for the export of gold to pay the which it is our duty to preserve inviolate in the people's gambling debts of the Federal Reserve Board and the Fed Treasury. The United States Treasury cannot be made li eral Reserve banks. able f pr them. Federal Reserve currency must be redeemed Mr. Chairman, the Federal Reserve Act requires the Fed by the Federal Reserve banks or else the Federal Reserve eral Reserve banks to redeem their Federal Reserve notes in banks must be liquidated. gold or lawful money. Federal Reserve currency consti Mr. Chairman, we know from assertions made here by tutes a first and paramount lien on all the assets of the the Honorable John N. Garner, the present Vice President Federal Reserve banks. That is the law of the United of the United States, that there is a condition in the United States. They have to give up everything they possess and States Treasury which would cause American citizens, if go through liquidation and have their books examined be they knew what it was, to lose all confidence in their Gov fore they can run out on the public and refuse to redeem ernment. That is a condition which Roosevelt will not have their currency. Roosevelt, however, by his action has said investigated. He has brought with him from Wall Street to them, "You need not pay American citizens gold in ex James Warburg, the son of Paul M. Warburg. Mr. War change for the paper money you took from the United burg is the head of the Bank of Manhattan Co. Mr. War States Treasury. You need not pay them anything of burg, alien born and the son of an alien who did not become value." naturalized here until several years after this Warburg's Mr. Chairman, I demand that all the gold in the custody birth, is a son of a former partner of Kuhn, Loeb & Co., a of the Federal Reserve Board and the Federal Reserve grandson of another partner, a nephew of a farmer partner, banks be placed in the Treasury of the United States. The and a nephew of a present partner. He holds no office in Federal Reserve banks cannot be relieved of their contrac our Government, but I am told that he is in daily attend tual liabilities and at the same time keep the gold belong ance at the Treasury, and that he has private quarters ing to the Treasury and to the people in their private there. In other words, Mr. Chairman, Kuhn, Loeb & Co. now possession. That gold must be placed in the people's control and occupy the United States Treasury. Treasury in the custody of the United States Government. Mr. Chairman, the text of the Executive order which seems Mr. Chairman, we will fight it out on this line if it takes to place an embargo on shipments of gold permits the Secre all summer. We will fight it out until every dollar stolen tary of the Treasury, a former director of the Federal Re from the American people by the international bankers of serve Bank of New York, the practices of which have been New York is repaid with compound interest to the United corrupt, to issue licenses in his discretion for the export of States Treasury. [Applause.] gold coin, or bullion, earmarked or held in trust for a recog Mr. AYRES of Kansas. Mr. Chairman, I yield 30 min nized foreign government or foreign central bank, or for utes to the gentleman from Texas [Mr. PATMANl. the Bank for International Settlements. Now, Mr. Chair BANKING SYSTEM AND VETERANS man, if gold held in trust for those foreign institutions may Mr. PATMAN. Mr. Chairman, I want briefiy to refer to be sent to them, I see no reason why gold held in trust for what the distinguished gentleman from Pennsylvania has American citizens as evidenced by their gold certificates and just stated about the gold reserve and the Federal Reserve other currency issued by the United States Government Banking System. should not be paid to them. I think an American citizen is I agree with him in many statements that he made. How entitled to treatment at least as ,good as that which the ever, there are a few statements with which I take issue. present administration is extending to foreign governments, The first one is his accusation of the present administration's foreign central banks, and the Bank for International Set being responsible for the closing of all the banks in the tlements. I think a veteran of the World War with a $20 country. May I suggest that a few days before the preceding gold certificate is at least as much entitled to receive his administration left the Capital City, Mr. Ogden Mills, the ·own gold for it as any international banker in the city of Secretary of the Treasury, asked the people of the United New York or London. States and the banks to lend this Government $90,000,000. Mr. Chairman, by the terms of the same Executive order, He asked them to submit bids ending on Saturday before the which seems to place an embargo on shipments of gold, the new administration took office on Tuesday; and may I sug Secretary of the Treasury, in his discretion, may issue gest to the gentleman that the bids submitted required this licenses authorizing the export of gold coin or bullion im- Government to pay the highest rate of interest {9r short- 1933 CONGRESSIONAL RECORD-HOUSE 2901 term paper it has ever had to pay in the history of our currency-money that is worth just as much as the gold Nation. The Government was required to pay 4%, percent that can be used in any market in the United States or in for 90-day paper. Before that we had been getting money any market in the world to purchase just as much as the for the Government for as low as the equivalent of 13 cents gold would purchase. So why should they refuse to turn in for the use of $100 one year on 90-day paper. Within the their gold if they can get for it value that is equivalent to last month we have obtained the use of money on Govern the gold that has been deposited? ment 90-day securities for a rate of 40 cents for the use of We have today the largest gold reserve of any nation in $100 one year. This goes to show that there was a scarcity all the world. We have more gold than all other nations in of money and credit and the banks were in serious condition the world combined, except France. We have almost as when the new administration came in. There was such a much gold as we had at the highest point of gold reserve in scarcity of money and credit and confidence had become so our history. completely destroyed it was absolutely necessary that Con There is no lack of gold. There is no lack of gold reserve. gress enact the banking law March 9, 1933. We have a sufficient gold reserve to authorize the issuance Mr. PARKER of Georgia. Mr. Chairman, will the gentle of $4,000,000,000 additional money, and then still have a man yield? gold reserve exceeding 40 percent. No country on earth has Mr. PATMAN. I yield. ever said by legislative act that more than 40 percent in Mr. PARKER of Georgia. Does the gentleman know in gold should be required to maintain its currency. Instead how many States the banks were closed prior to March 4? of giving so much ti.me and attention to broadening the gold Mr. PATMAN. All the banks in the Nation were closed or base by devaluation of the gold dollar, we should expand the restricted when the new administration came into power currency on the present gold base. If we will not expand March 4, 1933. I will insert the status of banking restric on the present base, what assurance have we that there will tions by States as compiled by the Associated Press March 4, be expansion if the base is broadened? 1933. It is as follows: THE SO-CALLED " ECONOMY ACT " Alabama: Closed until further notice. Now, in connection with money, budgets and Govern Arizona: Closed until March 13. ment expenditures, I want to discuss the recent Economy Arkansas: Closed until March 7. California: Almost all closed until March 9. Act. We will have before us in a few days what is known Colorado: Closed until March 8. as" the independent offices appropriation bill." This appro Connecticut: Closed until March 7. priation bill is going to carry into effect the economy bill Delaware: Closed indefinitely. Congress passed on the third day of this special session, the District of Columbia: Three banks limited to 5 percent; 9 sav ings banks invoke 60 days' notice. 11th day of March 1933. When this independent offices ap Florida: Withdrawals restricted to 5 percent plus $10 until propriation bill is submitted to you and you read it you will March 8. be reminded of the hardships and the misery that are going Georgia: Mostly closed until March 7, closing optional. Idaho: Some closed until March 18, closing optional. to be imposed upon a large group of people in the United Illinois: Closed until March 8, then to be opened on 5-percent- States. This ·question must be viewed from the standpoint restriction basis for 7 days. of the general welfare, the interest of the country must Indiana: About half restricted to 5 percent indefinitely. come first, and ahead of that of any group or any class. Iowa: ·Closed temporarily. Kansas: Restricted to 5 percent withdrawals indefinitely. ADMINISTRATION'S ECONOMY PROGRAM Kentucky: Mostly restricted to 5 percent withdrawals until The administration submitted the general program of March 11. Louisiana: Closing mandatory until March 7. economy carrying out the policy that was declared in the Maine: Closed until March 7. · Democratic platform of reducing expenditures 25 percent, Maryland: Closed until March 6. and I think it was the duty of this Congress to take that Massachusetts: Closed until March 7. proclamation from the President and carry out his wish Michigan: Mostly closed, others restricted to 5 percent indefinitely; Upper Peninsula banks open. and his desire by reducing the appropriations of this Gov Minnesota: Closed temporarily. ernment 25 percent; in other words, carry out the promise Mississippi: Restricted to 5 percent indefinitely. made to the people in the Democratic platform. Missouri: Closed until March 7. :Montana: Closed until further notice. SUBSTANTIAL REDUCTIONS FOR VETERANS ONLY Nebraska: Closed until March 8. The only criticism I have to offer, if you want to call it Nevada: Closed until March 8; also schools. a criticism-it should not be considered a criticism-is that New Hampshire: Closed subject to further proclamation. New Jersey: Closed until March 7. we did not make more reductions in other places and fewer New Mexico: Mostly closed until March 8. reductions when it came to veterans and their dependents New York: Closed until March 7. of the World War and Spanish-American War. Now is no North Carolina: Some banks restricted to 5 percent withdrawals. North Dakota: Closed temporarily. ti.me to reduce the buying power of the people or to slow up Ohio: Mostly restricted to 5 percent withdrawals indefinitely. the velocity of money and credit. These checks represent Oklahoma: All closed until March 8. practically the only medium of exchange in many communi Oregon: All closed until March 7. ties of this Nation. Every dollar turns over on an average Pennsylvania: Mostly closed until March 7, Pittsburgh banks open. of 15 times a year, so while one veteran is helped $1, other Rhode Island: Closed yesterday. people--not necessarily veterans-are helped $14 more. South Carolina: Some closed, some restricted, all on own initia- NON-SERVICE-CONNECTED CASES tive. South Dakota: Closed indefinitely. We have on the pension rolls-we will call them all pen Tennessee: A few closed, others restricted until March 9. sions for convenience--at this time 760,000 World War vet Texas: Mostly closed, others restricted to withdrawals of $15 erans. Four hundred and twenty-five thousand of these daily until March 8. Utah: Mostly closed until March 8. veterans are su:fiering from disabilities that they cannot Vermont: Closed until March 7. prove, according to the rules and regulations of the Vet Virginia: All closed until March 8. erans' Bureau, to be connected with their military service. Washington: Some closed until March 7. be West Virginia: Restricted to 5-percent monthly withdrawals in Consequently 400,000 of the 425,000 will automatically definitely. stricken from the pension rolls June 30, 1933. There will Wisconsin: Closed until March 17. remain 25,000 who are now receiving $40 a month, but who Wyoming: Withdrawals restricted to 5 percent indefinitely. will receive $20 a month after June 30 because they are PUNISHMENT OF GOLD HOARDERS permanently and totally disabled from doing work of any In connection with the question as to whether it is legal kind whatsoever and cannot furnish the necessary proof to or illegal for people to turn in their gold, why should the service connect their cases. people resist this order if the gold is needed for a greater SERVICE-CONNECTED CASES reserve to protect and make stronger the credit of the There are 365,000 veterans of the World War who are Nation at a time when so much will have to be expended for now drawing compensation for disabilities connected with public purpm::es? They receive for the gold they turn in their military service in time of war. By reason of this 2902 CONGRESSIONAL RECORD-HOUSE MAY 4 recent Economy Act approximately 160,000 of these veterans The husband, therefore, made no effort to otherwise con are going to be cut off. Congress has said by legislative nect his case than by presumption of law. He was told by act and decree in the so-called " Economy . Act " that these Uncle Sam, " Your case is on the compensation roll and 160,000 have disabilities that are not connected with their you have a service-connected-disability case, connected with se1·vice, when the best-trained legal and medical advice your service in time of war." Then the husband dies, and available to Congress has heretofore said that their dis after he is gone the widow is stricken from the rolls. Ah, abilities were connected with their military service. These the lips of that poor veteran are sealed by death. He can veterans were persuaded to cease and desist from further not come back to this earth and tell that poor widow and efforts to collect information from hospital records, doctor's these poor, innocent little children the names of the wit records, living witnesses, and from other sources, but were nesses or the testimony that might be produced in order told by legislative act that they had service-connected dis to service connect his case according to the rules and regu abilities. Now they are removed from the pension roll, and lations of the Veterans' Bureau and the laws of this country. the testimony that was then available to them in many in Is not this doing all these widows and children an awful stances is not available to them now. injustice? Certainly it is; and I can point out not one but NUMBER REDUCED MORE THAN 60 PERCENT dozens of such instances where hardships will be worked When you sum it up, you find that you are reducing the upon various classes of veterans and their dependents of the number on the pension roll by reason of the World War World War and the Spanish-American War under this law. alone by 470,000, and you are allowing only 290,000 to remain TOLD SERVICE-CONNECTED CASES NOT TO BE DISTUR.BED on the roll. We were told that there would be no reductions in the HARDSHIPS THAT WILL FOLLOW case of veterans who suffered their disabilities in combat or Let me suggest to you some of the abuses and hardships in line of duty-" No; we are not going to take a penny from that will follow the enactment of this so-called "economy them "-but may I suggest, Mr. Chairman, that this bill will law." I am submitting this in order that you may know take from one man, whose name I can mention if necessary, just what this bill does and in order that you may use your who lost a leg from a wound received in no man's land, the influence to correct some of these major hardships at lea.st. sum of $30 a month, or a 35 percent reduction. Another ~s morning a representative of blind veterans came to my man who had a gunshot wound in the shoulder, receiving office, a blind veteran with his two little children. He lives $22, will be reduced to $8 a month. Another man who lost in Baltimore. He has a disability that was connected with a leg, from $80 down to $40 a month; and practically all his military service, but by reason of this act he and 24 of service-connected cases are reduced 50 percent. Yet we were his comrades who live in Baltimore will be stricken from the told that we were not going to molest the veterans whose compensation roll on June 30, and after that not a penny disabilities were connected with service in line of duty. of compensation will they draw, when the best medical Mr. MOTT. Will the gentleman yield? testimony on earth has declared that their disabilities were Mr. PATMAN. For just a brief question. connected with their military service. They will possibly be DID MEMBERS KNOW PRINTED HEARINGS AVAILABLE? permitted to draw a disability allowance of $20 a month if Mr. MOTT. Who told us all that? Who gave us the they are unable to earn anything; that is, if they are totally assurance that such disabled veterans would not be interfered and permanently disabled. with? . Congress passed a law back in 1924 which said to these Mr. PATMAN. We were told that by the National Econ veterans that they need not furnish further proof that their omy League, the United States Chamber of Commerce, and disabilities are connected with the military service in time other promoters of this iniquitous legislation. They sold it of war; that Congress has made an investigation and is con to the country and to the Congress by making such repre vinced that their disabilities are service-connected and their sentations and, too, by misrepresenting the facts in many names will accordingly be placed on the compensation rolls. other ways. When this bill was introduced in the House on The proof that was then available to them is possibly in March 10, it was also introduced in the Senate, and on many instances now lost or destroyed. March 10, at 3 o'clock, our Economy Committee. composed Mr. WEIDEMAN. Are all the 25 blind? of the Honorable JORN McDuFFIE, of Alabama; the Honora Mr. PATMAN. The representative of them came to my ble CLIFFORD WoonRUM, of Virginia; the Honorable JACOB office. Yes; all of them are blind. MILLIGAN, of Missouri; and the distinguished gentleman from Mr. WEIDEMAN. And they will be stricken from the New York [Mr. TABER] who is sitting over here; and the rolls, will they? gentleman from Kansas [Mr. McGuGmJ, also from that Mr. PATMAN. They will be stricken from the rolls; yes. side of the aisle, were present at a hearing at the Senat~ WIDOWS AND ORPHANS OF VETERANS OF DIFFERENT WARS Finance Committee. They had extended hearings. Consider the cases of widows and orphans of veterans of Mr. Hines testified, and so did Mr. Douglas, the Budget the different wars in connection with this recent law. Sup Director. The hearing commenced at 3 o'clock p.m., March pose a ca.se where a veteran dies from a disability in no way 10, and closed at 5:30 o'clock p.m., March 10. The Demo connected with his military service. If his widow was the cratic caucus was held Saturday, March 11, at 10 o'clock a.m. wife of a veteran of the war between the States on the side The Democratic caucus refused to approve the bill as writ of the North, she will continue to draw every dollar that ten, but consented for the veterans to take a 25-percent she has been drawing in the past except a 10-percent reduc reduction. Notwithstanding the action of the Democratic tion for 1 year. If the widow was the wife of a Spanish caucus, the bill was brought in the House shortly after 12 American War veteran, she will draw in the future one half o'clock noon, March 11, and ·a special rule adopted for its of what she has drawn in the past, $15 a month. If she is consideration which prevented amendments. the widow of a World War veteran, with little children, she CAMPAIGN OF LIES AND MISREPRESENTATIONS will not draw 1 penny on earth in the future. How can These printed hearings were available on March 11 at 9 Congress defend a law making such discriminations against o'clock. Five hundred copies of them were delivered to the widows of different wars. Senate Finance Committee, and these gentlemen on the AN UNFORTUNATE SITUATION FOR WIDOWS AND ORPHANS Economy Committee evidently had access to these hearings. Let me tell you where an abuse or hardship comes in. You were charged and are now charged with knowledge of The husband before he died thought, in the event of his what was in these printed hearings, because they were avail death caused by a service-connected disability, that his able, and if you did not obtain a copy before your vote in widow would be placed on the pension roll because the law the House and learn all about the bill, it is presumably your required it. He thought that his widow would continue to fault and your funeral and no one else's. In the printed draw a pension and that further proof of service connection hearings Mr. Douglas disclosed what was expected to be done of his disability would never be required. He was justified if the bill were enacted into law; it was enacted and what in believing it. Mr. Douglas said would be done has been done. I will con- 1933 CONGRESSIONAL RECORD-HOUSE 2903 fess that I did not know there bad been a bearing on the war, and from high ranking officers and ex-officers who are bill; I understood no bearing bad been held; I did not see a now drawing from $5,000 to $18,000 a year pension from the printed copy of the hearings for 2 weeks; when the copy was Government, has had its day. The veterans will have their obtained it had printed on the top of it," Executive session day. They will never ask for more than justice; no one confidential." I immediately made an investigation and should ask that they accept less. As they sacrificed in time obtained the facts as I have related them to you. Although of war, they are willing to sacrifice during a great emer we knew nothing about the printed hearings' being avail gency in time of peace. I hope they will not be called upon able, I am of the opinion that we were charged with notice. to make a greater sacrifice than any other class. When the Mr. MO'IT. I quite agree with the gentleman, and I will people are in a position to more soberly consider veteran's state for the information of the gentleman that I voted legislation, without the interference of the Economy League, against the economy bill, as he did, but the question I asked I am sure they will be convinced that many of the benefits the gentleman was from whom did he get these assurances. that have been taken away from veterans and their depend Mr. PATMAN. We had them here on the floor of the ents should be restored; that economies in government can House. And from the National Economy League, and other be effected in other ways that will be less harmful to the sponsors of the campaign of lies and misrepresentations. general welfare. The National Economy League was and is now an outlaw Now I will yield to the gentleman from Pennsylvania. organization. It is a lawbreaker. It refused to comply with DEFLATIONARY MEASURE the Corrupt Practices Act of 1925. The officers did not want the people to know who was furnishing them money Mr. DUNN. I want to say that I did not vote for the and how much they were making by deceiving the people bill; but is there any way that we can give the soldiers and destroying the rights of the veterans. back this money? Mr. MOTT. We got them from the White House, did we Mr. PATMAN. Until the awful consequences of this leg islation are brought home to the people I doubt that the not? Congress or the President will recommend substantial Mr. TABER. Will the gentleman yield? changes. Each congressional district in the United States Mr. PATMAN. I yield to the gentleman. is going to lose about $1,000,000 a year under this bill. This Mr. TABER. They did not come from me. I knew they money would turn over about 15 times during the year. were going to be cut. I did not know the amount, but I never told anyone they would not be cut. Therefore each congressional district is going to lose $15,000,000 a year in buying power. This will not only hurt Mr. PATMAN. Did the gentleman vote for the bill? the veterans; it will hurt everybody. In addition to that, Mr. TABER. Certainly I voted for the bill. Mr. PATMAN. Why did not the gentleman tell the Mem I shudder to think of the misery, want, and despair that is bers of the House that these committee hearings were avail likely to be caused. Regardless of the merits of the legisla tion, is not this a bad time to place into effect such a defla able? tionary measure when buying power among the masses is so Mr. TABER. I had the hearings with me and I read from them on the floor here. badly needed? Mr. PATMAN. I did not know the gentleman was read HOW COMBAT INJURIES AFFECTED ing from printed hearings. I heard no reference to printed Through the courtesy of Mr. Tom Kirby, national legisla hearings during the debate. If the Members of this House tive chairman of the Disabled American Veterans, and Mr. had seen these hearings, I do not believe they would have Ralph L. Chambers, national rehabilitation chairman of the voted for this bill without making material changes in it. Disabled American Veterans, I have been furnished with a On page 40 of the hearings the proposed reductions and list of actual cases, including names and claim numbers, eliminations are itemized. The story was told on that page. which disclose the enormous reductions that will be suf Mr. CARPENTER of Kansas. Will the gentleman yield fered by veterans who were injured in combat with the to me so that I may add something? public enemy. Mr. PATMAN. I yield. One veteran who was drawing $26 a month for a dis Mr. CARPENTER of Kansas. I will ask the gentleman ability suffered on the field of battle will draw $8 hereafter, from New York [Mr. TABER] if I did not ask him if they under the terms of this bill. did not contemplate cutting the veterans $400,000,000, and Another one drawing $19 a month will get $8. Another his answer to me was that they would be cut $375,000,000. one drawing $65 a month for a disability incurred in com Mr. PATMAN. When they told you they were going to bat, a man who spilled his blood for the cause of his country cut $400,000,000 or $375,000,000 annually from veteran bene upon the field of battle in time of war, will be reduced from fits, there was only one conclusion for you to reach, that $65 to $20 a month. service-connected cases would have to bear a reduction of Another one for a similar disability reduced from $50 to around $200,000,000 annually. That is the reason I did not $20, and I could go on and give you a lot of similar examples. vote for the bill. I knew where these cuts and reductions Mr. MOTT. Who made these recommendations? Was would have to come from. I knew that these service-con it not the President? nected cases were going to have to be cut 50 percent, and Mr. PATMAN. I hope the gentleman will bear with me you did, too. There was no way around it, and yet we were for a few minutes. I have explained how people were sold told by many that service-connected cases would take no on and were demanding these reductions by reason of the losses. campaign conducted by the so-called "National Economy Mr. MOTT and Mr. DUNN rose. League." Mr. MOTT. We were told that by the President, were we Mr. JOHNSON of Minnesota. Will the gentleman yield? not? Mr. PATMAN. Yes. Mr. PATMAN. I am sorry, but I cannot yield further to Mr. JOHNSON of Minnesota. I understood the gentle the gentleman. I have heretofore stated who told us that man to say a moment ago that the cut should have been service-connected cases would take no loss. taken from other veterans. THE NATIONAL ECONOMY LEAGUE Mr. PATMAN. From other sources. The four great means of communication are the press, the Mr. JOHNSON of Minnesota. Does not the gentleman radio, the screen, and the stage. The National Economy think that Senators and Representatives themselves and League, with substantial support from these means of com others could have well afforded to take a little bit larger munication with the people, backed by millions of dollars, cut? propagandized the country with false and misleading infor- Mr. PATMAN. I thank the gentleman for his suggestion. mation, which has deceived good people. It is said "every Mr. JOHNSON of Minnesota. I should like to have the dog hn:s his day." The National Economy League, which gentleman answer the question. received support from war profiteers who made money by Mr. PATMAN. I agree with the gentleman. Start at the reason of this country's misery and misfortune during the top with reductions and come down. 2904 CONGRESSIONAL RECORD-HOUSE MAY 4 Mr. JOHNSON of Minnesota. I served in the Senate for York profited doubly by this arrangement is no reason why $7,500 a year, and I had to work much harder there than an unjust burden should be placed upon the good people of I do over here. that State at this time. At the same time our governmental Mr. PATMAN. If you want to distribute the purchasing policy should not be changed in order to accommodate a few power, do not start at the top but the bottom, then every people in New York. body will be benefited. It is much easier for money to go The sixteenth amendment to our National Constitution from the bottom to the top than it is for money to go from changed our system of raising revenue. The principal sup the -top to the bottom. port for the Government now comes from the income tax, the CLAIMED NEW YORK PAYS ONE THIRD ALL INCOME TAXES fairest tax on earth, which is based upon ability to pay; if It is said that we will save by this act $450,000,000. Will no profit is made over and above a liberal exemption, no we save that money? No; it is going to shift the burden income tax is paid. from the shoulders of the National Government to the shoul This is no time to change the policy of our Government in ders of local charity and to the States. That is what it is regard to pensions. If the policy was right after every war going to do. The State of New York pays a lot of money in in the history of our country it is right now. income taxes. It is not paid by all the people of New York. ABUSES UNDER THE OLD LAW It is paid by a few people in New York. Much of it has been I admit that under the old law there were abuses. The collected from the people from all over the Nation by reason Government was being defrauded in some cases, I am sure, of exorbitant prices received and with the aid and support but every day the perpetrators of those frauds were being of the Government. If they exact too much money from discovered by the Veterans' Bureau, and they were being the people for services, commodities, and interest by using eliminated and eliminated quickly from the rolls. Certain the credit of the Nation free, as many of them are doing to veterans were also enjoying certain rights that could not day, it occurs to me that a large part of it, over a certain be defended. These rights should have been taken away amount, should be taken into the Public Treasury and used without destroying all the good laws that have been enacted in the interest of the general welfare. Why should one for veterans. In other words, we should not burn down State be permitted to keep it? There is too much concen the barn to get rid of the rats. I believe that had the old tration of wealth now, and we should not do anything to en law continued, in a very few months you would never have courage further concentration of wealth. been able to point your finger to a single case and say, The statement is made that people of New York pay one "There is a man drawing compensation or pension from the third of all income taxes to the National Government. If Government who is not entitled to it," for every one of they pay according to their ability to pay, why should not such cases would have been stricken from the rolls. Do they pay one third if they are paying like everyone else? you not think that would have been the better course to They should not be discriminated against; neither should pursue, especially at a time when we have a currency fam they be favored over the people of any other State. Is ine and when there is an insufficient medium of exchange there anything wrong about the citizens of New York State throughout the length and breadth of this country? And paying money into the Treasury according to the same laws, further, in view of the fact that in many communities in same conditions, and the same amount as paid by citizens of this Nation the checks sent there by the Veterans' Bureau other States? from the National Government represent practically the SHIFTING TAX BURDEN IN INTEREST OF WALL STREET BANKERS only medium of exchange the people of those communities But let me show you where it is in the interest of Wall have? Do you not think this should have been postpone~ Street and the international bankers to shift this burden. that it would have been in the interest of the general wel Let. me show you where it is for their interest to shift every fare of all of the people, for it to be postponed, regardless of .burden or expenditure they can from the National Govern how you feel as to a permanent policy in the future? ment to the State and local governments. I am not saying this in criticism; I am saying it to sug We are told that this act will save the Government $450,- gest to you these abuses in order that we may try to get 000,000 annually. If New York pays one third of the income them corrected in a way that will satisfy the country and tax, that would be $150,000,000 for the State of New York. the administration, and at the same time do justice to the If $450,000,000 a year can be saved on veterans, a few people helpless ones in every State in this country of ours. in New York City will be saved almost $150,000,000 a year in WHAT ABOUT THE BIG BOYS WHO CAUSED THIS REDUCTION? income taxes. New York State will then furnish assistance Take the ones who caused this great economy move to be to the veterans of that State through the charity organiza perpetrated, this move which is deflationary instead of a. tions at a possible expense of around $15,000,000 a year. needed inflationary movement. Let us see if it is fair for thereby saving the few income-tax payers around $135,000,- them to receive what they are receiving from the United 000 a year. There is an incentive to change the burden from States Government, considering the unbalanced Budget they the National Government to the local charities. Should that have told you so much about. be done? No. It is contrary to the established policy of the Archibald Roosevelt, Admiral Richard Byrd, General Har Government. The National Government has always op bord, General Pershing, and Admiral Sims are entitled to posed requiring one who served the country honorably in the credit· or responsibility-whichever you choose to call time of war to resort to local charity for help if later in it-for the passage of this legislation. Of course, they had life he is dependent and needs his country, just as in time the support of the Mellons, Morgans, Mills, Myers, and of war his country needed him. Mitchells, who represent millions, misery, misfortune, mort The pensions paid to the veterans and their dependents of gages, and malfeasance. Let us see how these gentlemen the War of 1812, Mexican and Indian Wars, and the War be are coming out after the economy storm has blown over. tween the States were paid by the National Government. The Archibald Roosevelt, of Teapot Dome and black-satchel money was raised principally through customs duties, thereby fame, and his gang will continue to raid the Treasury each equally distributing the burden to all the States, not in pro month to the tune of many thousands of dollars on an ocean portion, however, to ability to pay, but according to the mail contract. amount of goods purchased, including the barest necessities Admiral Byrd will continue to draw around $4,000 a year. of life. after his contribution of $300 a year toward balancing the From 1791 to 1917 practically all of the ordinary receipts Budget, for a disability in no way connected with military of the Government came from customs and internal revenue. service in time of war. General Harbord will draw more The income tax law changed our tax system. Import duties than $5,000 a year, after his $400 contribution toward the being high in order to raise this revenue, manufacturing in cause that is so near and dear to his heart-balancing the dustries were thereby enabled to collect high prices for what Budget. Admiral Sims the same; neither is receiving his they produced. The people paid several dollars to every pension for disabilities in any way connected with his one that went into the Treasury. However, just because New military service. General Harbord also receives a salary of 1933 CONGRESSIONAL RECORD-HOUSE 2905

$50,000 or $75,0M a year as president of the Radio Corpo~a They are merely at the mercy of those who hold such rights tion of America. General Pershing, whom we all admire and exercise such privileges. One voting for the bill had the and respect, very foolishly permitted the use of his name for consolation of knowing that he would be called great by the this unworthy cause. The general is enthusiastic about bal so-called "big men and women"; that most of the newspa ancing the Budget, but he will fare pretty well in the future. pers would sing his praises; that he would be supported in his Before the Economy Act was passed he was receiving $19, views by the radio, screen, and the stage. '109.05 a year pension from the Government; his reduction BUY, BUY, BUY CAMPAIGN amounted to $1,434.05, leaving him $18,275 a year, or Times were good in 1928-29. The slogan then was $1,522.91 a month. He is drawing that amount for a dis " Buy! Buy! Buy! " Money and credits were moving rap ability in no way connected with the military service during idly; they had great velocity. Then the Economy League war. type commenced the slogan," Save! Save! Save!" As veloc PETI'ED AND PRIVILEGED NEPHEWS OF UNCLE SAM ity of money and credit is slowed up times commence to get Admiral Byrd, Admiral Sims, and General Pershing en harder; deflation, which should be as much dreaded as a tered Government service when they were very young boys; plague or epidemic of disease, commences to stalk over our they were educated at public expense, actually paid by the fair land. Old Man Deflation brings poverty, misery, dis Government to go to school. The admirals went to the tress, suicides, and despair. When a wage earner loses his Na val Academy and the general went to West Point. They job business loses a customer. The smaller the wages re· have never known what it was to want for anything; they ceived by the wage earners and the smaller the amount have all had life jobs with the Government or life pensions. received by the farmers for what they produce the less busi· General Harbord spent his life in the Army since boyhood. ness is transacted. The National Economy League has done Are they in a position to sympathize with the veteran who more to cause, aggravate, and accentuate the depression than is down and out, who has a wife, children, and ~ged parents all other organizations and people in America. The selfish· to support, without a job and no property? I venture to type creditor wants money high so that the 4-percent inter say that they have been viewing the situation more from the est he receives will purchase as much in commodities and cold-blooded standpoint of money and Budget than from services as 10 percent would purchase under normal condi the human standpoint. tions. He overlooks the fact that the people may not be able HUMAN BUDGET SHOULD BE BALANCED to pay even the 4 percent; it is not to his interest, because It is as important that the human budget be balanced as it is better for him to accept a dollar that will not purchase it is that the Government's Budget be balanced. It is not so much than not be able to collect any dollar at all. How right for the citizens who build our country in time of peace ever, he is greedy, he cannot see beyond the end of his nose. and who save it in time of war to actually be in want in this Where there is greed there is no vision. The Good Book land of plentr-. If the human budget is balanced, the Gov says where there is no vision the people perish. ernment Budget will automatically balance itself. NO UNBALANCED BUDGET IF BANKING LAW COMPLIED WITH Under the present law the veteran who has suffered in battle the loss of both feet and both hands or is blinded in If the Federal Reserve Act, to which the gentleman from both eyes will receive $125 a month. Should any general or Pennsylvania [Mr. McFADDEN] referred, was complied with, admiral receive more? we would not have an unbalanced Budget and we would have plenty of money. These powerful bankers that have been SPANISH-AMERICAN WAR VETERANS controlling the monetary system of this Nation would have The Spanish-American War veterans are disturbed more to pay a fair and reasonable interest charge for using the than the veterans of any other war. Only about 10 percent credit of our Nation. Every bill-currency-that is issued of the present number will remain on the pension rolls. It is represents a mortgage on all the homes and other property very difficult for one of these veterans to prove service-con of all the people in this Nation. A few powerful bankers nection; hospital records were not very well kept in those are giving these mortgages daily by issuing money on the days, witnesses have died, and evidence has been destroyed. credit of the Nation. Section 16 of the Federal Reserve Act They have reached an age in life when it is almost impos says that an interest rate " shall " be charged-made manda sible for them to get a job or to earn a livelihood. They tory. The Federal Reserve Board set the zero rate and the will not suffer alone; their families and other dependents will Government has thereby lost billions of dollars in revenue. be forced so suffer along with them. CAN SAVE $360,000,000 A YEAR GREAT VICTORY OVER SICK VETERANS • Let me show you how we can save enough money to re- Now that the so-called" Economy Act" has become a law, store these helpless, dependent men, women, and orphans to the National Economy League is becoming inactive. The the pension roll and put the buying power out amongst the generals and admirals are sending in their resignations. I people and let it remain there until conditions are a little wonder why they do not pursue their economy program and different. Then, if you want to change the policy of this cause some of the big fellows to take a little reduction along Government as to pensions do it, but do not do it now, when with the veterans. It seems that they had one object only they need this money in every community, and when in in mind, and since that has been accomplished they are not many instances it is the only medium of exchange they interested further. Under date of April 22, 1933, the Na- have. we have a national debt of $21,000,000,000. Our tional Economy League sent out a letter thanking Members country is not bankrupt. It is worth more than $300,000, of Congress for voting for the economy bill. This letter was ooo,ooo, with a debt of $21,000,000,000. More than half of signed by Admiral Byrd. It states: these bonds are held by Federal Reserve banks, private in- At the last meeting of the managing committee of the National stitutions, not one dollar of stock being owned by the Gov Economy League a resolution was passed instructing me to express ernment and by other private banks. The Government is to you the appreciation of the members of the league for your vote on the economy bill. The members of the league admire your paying $725,000,000 a year interest on those bonds. courage and patriotism. The bankers have the privilege of placing the bonds held I did not vote for the so-called "economy bil~ "; I voted by them with the Treasury of the United States and receiv against it. That assumption was just about as well founded ing new money in return. They can loan this new money to as most of the statements published by the league to mislead the people and receive interest for its use; at the same time and deceive the people. The courage and patriotism of a they will be receiving interest from the Government on the Member who voted for the bill is admired by the members of bonds deposited with the Treasury to secure the new money. the league. Does it take much courage and patriotism to Instead of paying bondholders a bonus of $725,000,000 a condemn helpless, innocent, sick, and diseased veterans who year, let us at least pay off half of that amount, the part are drawing $12 a month from their Government? They do held by the banks of the Nation, with new money and save not own any newspapers; they have no rights over the air; about $360,000,000 a year, .and through that sa.ving restore they never rent a hall and cause an audience to be assembled most of these ca-ses, especially the cases where such great in order that people may be either commended or condemned.• hardships have been worked, put them back on the roll, and 2906 CONGRESSIONAL RECORD-HOUSE MAY 4 send this purcha~ing power back into every nook and comer Whereas the resolution referred to above has only been partially of our Nation. carried out; and Whereas the State of Florida and the counties of the Gulf coast In order to provide for an elastic currency or to make sure of Florida have spent approximately $15,000,000 and the funds of that there would not be too much money a law may be en both the State and counties are now exhausted; and acted permitting the holder of any part of the money so Whereas all of the Gulf coast counties and cities and civic issued to be exchanged for United States Government bonds bodies have passed resolutions setting forth the necessity for con tinuing the construction of the Gulf Coast Highway in order to drawing a certain rate of interest and to reconvert the relieve the distressing unemployment situation in the Gulf coa1;t bonds under certain conditions into money. This is not counties and cities owing to the serious decline in the oystf.r, necessary but may be done to answer the argument of the fishing, and other businesses peculiar to these counties and cities; reactionary, who is holding onto the coat tail of progress and Whereas the State road system of Florida cannot be properly screaming " Too much money! " It is not the amount of rounded out and completed, nor can the hundreds of millions of money that alarms the powerful bankers; it is the possible dollars invested therein begin to pay a full return on this invest loss of control of the monetary system that they are con ment until the Gulf Coast Highway is completed; and Whereas the construction of the Gulf Coast Highway has been cerned about. They can control the monetary system and officially declared of military and strategic importance to the value of everything as long as there is so little money that United States Government; and people must depend on credit. May I invite your attention Whereas the public-works committee now arranging the public to the fact that during the last few months this country has works program for President Roosevelt has the authority and power to include in said program the construction of Federal deflated in bank deposits more than $15,000,000,000, in addi roads; and tion to the five billions tied up in closed banks? [Applause.] Whereas road construction in Florida w1ll provide work for the The CHAIRMAN. The time of the gentleman from Texas relief of unemployment, both in direct employment and in the [Mr. PATMAN] has expired. manufacture and transportation of Florida road-building mate Mr. PATMAN. Mr. Chairman, I ask unanimous consent rial: Now, therefore, be it Resolved by the Senate of the State of Florida (the House to revise and extend my remarks and to include therein of Representatives concurring), That the Public Works Commit certain excerpts in connection with the subject matter I tee of President Roosevelt, the Federal Bureau of Public Works, have discussed. our Senators and Congressmen in Washington, the Governor of Florida, and the State road department are hereby requested to The CHAIRMAN. Without objection, it is so ordered. secure the immediate federalization of all of the Gulf Coast There was no objection. Highway and ·to use every effort at their command to allocate Mr. BUCHANAN. Mr. Chairman, the Clerk may read. funds to Florida for the immediate construction of the Gulf The Clerk read as follows: Coast Highway in this State; be it further Resolved, That a copy of this resolution be forwarded by the Compiling testimony in contested-election cases: For services secretary of the State of Florida, under the great seal of the in compiling, arranging for the printer, reading proof, indexing State of Florida in due form to the Congress of the United States, testimony, stenography and typewriting, supervision of the work, and the several Members thereof from Florida, to the Governor of and expenses incurred in the contested-election cases of the Florida, and to the State road department. Seventy-second Congress, as authorized by the act entitled "An Approved by the Governor of Florida, May 2, 1933. act relating to contested elections", approved March 2, 1887 (U.S.C., title 2, secs. 201-226), $1,000. STATE OF FLORIDA, Office Secretary of State, ss: Mr. BUCHANAN. Mr. Chairman, I offer an amendment. I, R. A. Gray, secretary of state of the State of Florida, do The Clerk read as follows: hereby certify that the foregoing is a true and correct copy of Senate ConcuITent Resolution No. 12, passed by the Legislature Committee amendment offered by Mr. BUCHANAN: On page 2 of Florida, session 1933, and filed in this office. strike out lines 15 to 22, inclusive. Given under my hand and the great seal of the State of Florida, The amendment was agreed to. at Tallahassee, the capital, this the 2d day of May A.D. 1933. The Clerk read as fallows: [SEAL] R. A. GRAY, Secretar11 of State. ARCHITECT OF THE CAPITOL The Clerk read as follows: Capitol power plant: For an additional amount for lighting, DEPARTMENT OF LABOR heating, and power for the Capitol, Senate and House Office BUREAU OF IMMIGRATION Buildings, Supreme Court Building, Congressional Library Build ings, etc., including the same objects specified under this head For refund to Joseph Vigliotti, of Detroit, Mich., as authorized in the Legislative Appropriation Act for the fiscal year 1933, by Private Act No. 318, approved March 4, 1933, $1,500. $30,000. Mr. LOZIER. Mr. Chairman, I move to strike out the Mr. GREEN. Mr. Chairman, I move to strike out the last word. last word. I have introduced a bill CH.R. 5203) to reduce the allow I ask unanimous consent to extend my remarks to in able deposit of one individual in Postal Savings banks from clude a brief resolution from my State legislature addressed $2,500 to $500 and to reduce the interest on Postal Savings to Members of the House. accounts from 2 to one half of 1 percent. This measure is The CHAIRMAN. Without objection, it is so ordered. designed to halt the mounting deposits in Postal Savings There was no objection. accounts, which has reached the $1,000,000,000 mark, prac Mr. GREEN. Mr. Chairman and my colleagues, the citi tically all of which represents funds drawn from country zens of Florida are deeply interested in further Federal aid banks. for highways. We believe road building to be one of the In recent years Postal Savings banks have become a best means of relieving the unemployed and at the same time menace, not only to our legitimate banking system but to expending public money in a safe and profitable investment. the people, especially in small towns and rural communities, Probably over 80 percent of road expenditures goes directly who are interested in the maintenance of well-managed and or indirectly into labor and, consequently, relief of the unem solvent local banks. ployed. Under my bill the deposits of one individual is limited to Senate Concurrent Resolution No. 12 by the Florida Leg $500 and the interest rate is made so low that hoarders will islature urges the further expenditures of Federal funds for not be encouraged to withdraw their money from banks road building and particularly urges the completion of the and place it in postal savings accounts. If my bill is en Florida Gulf Coast Highway. This is one of the most nec acted, we may reasonably anticipate that in a few months essary and important highways in· my State and should be a large part of the $1,000,000,000 now in Postal Savings now completed. banks will be returned to legitimate banks and trust com The resolution follows: panies or invested in safe loans or in productive industry. Senate Concurrent Resolution 12 Under my bill if a man is determined to hoard his money Whereas the Legislature of the State of Florida by joint resolu in a postal savings account he may do so, but not in excess tion in 1929 memorialized Congress, the Federal Bureau of Public $500, his Roads, and the State Road Department of Florida. to W!e every of and while deposit will be guaranteed he would possible effort to federalize the Gulf Coast Highway, which is get only nominal interest thereon. My bill will take the legally known as " State Roads 10, 15, and 115 "; and profit out of hoarding. 1933 CONGRESSIONAL RECORD-HOUSE 2907 In my opinion the Federal Government should not sanc Commerce, and said amendments shall be in order, any rule of the House to the contrary notwithstanding. Amendments offered tion any system that encourages people to withdraw their by direction of the Committee on Interstate and Foreign Com money from solvent and well-managed banks and hoard it merce may be offered to any section of the bill at the conclusion in Postal Savings banks. At a future date I hope to find of the general debate, but said amendments shall not be subject to time to discuss this subject in detail. amendment. At the conclusion of the consideration of the bill for amendment the committee shall rise and report the bill to the I ask unanimous consent to revise and extend my remarks. House With such amendments as may have been adopted, and the The CHAIRMAN. Is there objection to the request of previous question shall be considered as ordered on the bill and the gentleman from Missouri [Mr. LoZIERJ. the amendments thereto to final passage Without intervening Mr. GOSS. Reserving the right to object-and I shall motion except one motion to recommit. not in this case-I think these matters should be taken up ORDER OF BUSINESS in the House rather than in the Committee, and I am going Mr. BYRNS. Mr. Speaker, I ask unanimous consent that to object to any further requests, if they are made this when the House adjourns today it adjourn to meet at 11 afternoon, until we get back into the House. o'clock tomorrow. The CHAIRMAN. Is there objection to the request of In explanation of that I will say that it is hoped that it the gentleman from Missouri [Mr. LoZIERl? the House will meet at 11 o'clock tomorrow and remain in There was no objection. session for a very reasonable time tomorrow afternoon it The Clerk read as follows: will be possible to pass the securities bill and enable the Treasury Department: Chester A. Poling, Inc. (United States House to adjourn over Saturday. If this request is granted, District Court, Eastern District of New York, November 22, 1932, I hope the Members will be here at 11 o'clock tomorrow, so damages due to collision between the lighter Poling Brothers No. 1 and the Coast Guard vessel Thippe), $11,215.02; Seacoast Trawling that no point of order with regard to a quorum can be made Co. (United States District Court, District of Massachusetts, March and prevent carrying out the wishes of the chairman of the 6, 1933, damages due to collision between the fishing vessel Juneal committee [Mr. RAYBURN] to dispose of this bill tomorrow. and the Coast Guard patrol boat C.G. 212). $945.42. The SPEAKER. Is there objection to the request of the Mr. BUCHANAN. Mr. Chairman, I offer an amendment gentleman from Tennessee? to correct the spelling of a word. Mr. McFADDEN. Reserving the right to object, how The Clerk read as follows: much time for general debate is allowed on this bill? Committee amendment offered by Mr. BucHANAN: On page 5, Mr. BYRNS. Five hours. line 15, strike out the word " Thippe " and insert the word Mr. MOTT. Reserving the right to object, does the rule "Trippe." provide for amendments? The amendment was agreed to. Mr. POU. It only permits amendments offered by the The Clerk concluded the reading of the bill. committee. Mr. BUCHANAN. Mr. Chairman, I move that the Com Mr. MOTT. The usual rule? mittee do now rise and report the bill back to the House The SPEAKER. Is there objection to the request of the with sundry amendments, with the recommendation that the gentleman from Tennessee [Mr. BYRNS]? amendments be agreed to and the bill as amended do pass. There was no objection. The motion was agreed to. LEAVE OF ABSENCE Accordingly the Committee rose; and the Speaker having By unanimous consent, leave of absence was granted as resumed the chair, Mr. MCREYNOLDS, Chairman of the Com follows: mittee of the Whole House on the state of the Union, re To Mr. JOHNSON of West Virginia, for today, on account ported that that Committee, having had under consideration of officia-1 business. the bill H.R. 5390, the third deficiency appropriation bill, To Mr. LANZETTA, indefinitely, on account of illness. directed him to report the same back with sundry amend To Mr. BLAND, indefinitely, on account of illness. ments, with the recommendation that the amendments be To Mr. REED of New York, indefinitely, on account of agreed to and the bill as amended do pass. illness. Mr. BUCHANAN. Mr. Speaker, I move the previous ques REMONETIZATION OF SILVER tion on the bill and all amendments to final passage. The previous question was ordered. Mr. WIDTE. Mr. Speaker, I ask unanimous consent to The SPEAKER. Is a separate vote demanded on any extend my remarks in the RECORD and include therein a amendment? If not, the Chair will put them en grosse. resolution introduced by myself. The amendments were agreed to. The SPEAKER. Is there objection to the request of the The SPEAKER. The question is on the engrossment and gentleman from Idaho? third reading of the bill. There was no objection. The bill was ordered to be engrossed and read a third time Mr. wmTE. Mr. Speaker, under the leave to extend my and was read the third time. remarks in the RECORD I include the fallowing resolution The SPEAKER. The question is on the passage of the introduced by me, stating in substance that it is the sense bill. of the House of Representatives that the delegates appointed The bill was passed. by the President to the International Economic Conference On motion by Mr. BUCHANAN, a motion to reconsider the shall work unceasingly for the remonetization of silver: vote by which the bill was passed was laid on the table. Resolution SALE OF SECURITIES Whereas the nations of the world, conforming to the operation of economic law from time immemorial, have based their system Mr. POU, from the Committee on Rules, submitted the of money currencies upon the coinage of the precious metals, following privileged resolution CH.Res. 130) for printing gold and silver, thereby securing automatic control of the money volume necessary to the vital and controlling function of money; under the rules: Whereas under the operation of economic law it is necessary House Resolution 130 that the increase in the volume of primary money or money of Resolved, That upon the adoption of this resolution, it shall be ultimate redemption must keep even pace with expanding busi in order to move that the House resolve itself into the Committee ness and growing population in order that the relation of debtor of the Whole House on the state of the Union for the consideration and creditor can be maintained on a just and equitable basis, of H.R. 5480, a bill to provide full and fair disclosure of the char thereby insuring the stability of the banking and financial sys acter of securities sold in interstate and foreign commerce and tems of the several countries, and at the same time to supply through the malls, and to prevent frauds in the sale thereof, and a stable medium of exchange between the people of the several for other purposes, and all points of order against said bill are nations, the use of both gold and silver is necessary; hereby waived. That after general debate, which shall be confined Whereas in the Wisdom acquired from the experience of the to the bill and shall continue not to exceed 5 hours, to be equally ages, the Government of the United States recognizing and con divided and controlled by the chairman and ran.king minority forming to this economic law, has placed upon its statute books member of the Committee on Interstate and Foreign Commerce, and there is now in force a law contained in section 311 of the the bill sh.all be considered as having been read for amendment. United States Code of Laws passed November 1, 1893 (c. 8, No amendments shall be in order to said bill except amendments 28 Stat. 4), reading as follows: "It is hereby declared to be the offered by direction of the Committee on Interstate and Foreign policy of the United States to continue the use of both gold and LXXVII-184 2908 CONGRESSIONAL RECORD-HOUSE MAY 4 silver as standard money, and to coin both gold and silver into Mr. RAYBURN: Committee on Interstate and Foreign money of equal intrinsic and exchangeable value, such equality to be secured through international agreement, or by such safe Commerce. H.R. 5480. A bill to provide full and fair dis guards of legislation as will insure the maintenance of the parity closure of the character of securities sold in interstate and in value cf the coins of the two metals and the equal power of foreign commerce and through the mails, and to prevent every dollar at all times in the markets and in the payment of debts. And it is hereby further declared that the efforts of the frauds in the sale thereof, and for other purposes; with Government should be steadily directed to the establishment of amendment