13016 EXTENSIONS OF REMARKS June 18, 1981 EXTENSIONS OF REMARKS THE SUPREME COURT several toxic substances in the workplace, cost-effective rule-making," said spokesman PROTECTS THE BALANCE among them asbestos, chromium and cadmi­ Jack Glawson. um. "And the Supreme Court did not say oth­ The administration singled out the cotton­ erwise. All that a majority of the court did HON. ANTHONY TOBY MOFFETT dust standards when it announced in March say is that the Occupational Safety and that it intended to review, and possibly Health Act does not require OSHA to OF CONNECTICUT relax, all federal standards limiting employe engage in cost-benefit balancing when it IN THE HOUSE OF REPRESENTATIVES exposure to toxic substances. sets health standards for toxic substances." Thursday, June 18, 1981 In making the announcement, Thorne But AFL-CIO Secretary-Treasurer Auchter, head of the Occupational Safety Thomas R. Donohue, whose union members e Mr. MOFFETT. Mr. Speaker, yes­ and Health Administration, called cost-ben­ in the textile industry will benefit from the terday the working men and women of efit analysis "an important tool in produc­ court's ruling, said the ruling means "you America won an important victory in ing efficient regulation .. .. That's why we can't invent a cost-benefit analysis and the battle for healthful working condi­ plan to apply cost-benefit analysis to the somehow inject it into the law." At a news tions. cotton-dust standard, to see how regulatory conference yesterday, Donohue said the The Supreme Court ruled that the costs and benefits can be weighed in an court "has hopefully put to bed the concept safety of workers, and not the balanc­ actual case." that the measure for the effect of a statute ing of costs and benefits, was the pri­ But the court ruled yesterday that the is cost-benefit analysis." mary function of the Occupational intent of Congress was to protect workers in OSHA is still reviewing a number of any "feasible" way, and that any effort to standards for other toxic substances in the Safety and Health Act. The Court balance the benefits of protection against workplace, and administration officials yes­ ruled that only the feasibility of pro­ the costs would be inconsistent with the law terday were unwilling to speculate on tection should limit the degree to as passed by Congress. whether those reviews will be halted or, if which workplace protections are of­ An official of the administration's White necessary, legislation introduced to permit fered. House-level regulatory task force acknowl­ cost-benefit analysis. Cost-benefit analysis has its place. edged that the decision was a setback for Meanwhile, lawyers were still debating OSHA will still be able to fashion OSHA's deregulatory efforts, but said the the extent of the ruling- if, for instance, rules for which compliance can be government-wide effort to impose cost-effec­ the court intended to permit the use of cost­ achieved in a cost-effective manner. tiveness on regulation will continue. benefit analysis in areas other than those " It would be fair to say that we're in some concerning health standards. But an important principle has been ways disappointed in it," said task force "You can be sure this is not the last case brought home by the Court decision; counsel C. Boyden Gray. "But it doesn't to be litigated under the OSHA act," said a that is, that worker safety is not a fad, affect the overall effort." lawyer for the textile industry. it is not a convenience of happier eco­ Gray said the ruling "seems to preserve nomic times, but it is a sine qua non of the executive order and the things we want [From the Washington Post, June 18, 1981] the American workplace. to do at OSHA." The executive order, he noted, does not require cost-benefit analysis HIGH COURT REFUSES To EASE LAWS ON JOB I would ask that the following arti­ SAFETY, HEALTH cles describing the decision be printed where forbidden by statute, on emergency regulations or on regulations being issued to

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. June 18, 1981 · EXTENSIONS OF REMARKS 13017 Unless Congress answers it, that question halfway by deciding that the law required a The U.S. First Circuit Court of Appeals undoubtedly will set off a new round of showing of "significant risk" to worker ageed, and the Justice Department, saying court cases, which itself could sidetrack health in promulgating regulations. But it that the ruling could damage its effort Reagan's regulatory program, in which cost­ was unable to reach agreement on the cost­ against racketeering, sought the reversal. benefit analysis is a centerpiece. benefit issue. The court ruled 8 to 1 yesterday in U.S. vs. Thorne Auchter, Reagan's new OSHA Yesterday it did. Upholding all but one minor element of Bazelon's ruling, Brennan Turkette that the law applied to both legiti­ head, tried to hail the ruling as a victory, mate and illegitimate enterprises. Stewart apparently because the agency defended the cited the section of the law governing regu­ regulations before the Supreme Court lations for toxic materials and harmful sub­ dissented. during the presidency of Jimmy Carter. stances: OSHA, it says, "shall set the stand­ The justices also ruled in a Connecticut Reagan's OSHA, however, announced in ard which most adequately assures, to the case that inmates are not constitutionally March that it would apply cost-benefit anal­ extent feasible . . . that no employe will entitled to a written explanation when a ysis to the cotton dust regulations and suffer material impairment of health ...... pardons board refuses to commute their asked the justices to withdraw from the The dictionary, Brennan said, defines sentence. case. Brennan dismissed that request in a "feasible as capable of being done, executed The issue was one of "entitlement" under terse footnote yesterday. or effected." the due-process clause of the Constitution. The textile industry saw the decision Congress "meant feasible and nothing else in using that term," Brennan said. ''The leg­ A lower court held in Connecticut Board of largely as a defeat. "We're disappointed," Pardons vs. Dumschat that, because the said a formal statement from the American islative history demonstrates conclusively that Congress was fully aware that the act state's board of pardons often commuted Textile Manufacturers Institute, which life sentences, inmates had a protected "lib­ challenged the regulations. would impose real and substantial costs of compliance on industry and believed that erty interest" in the board's proceedings "We're on cloud nine," said Florence which mandated written explanations of de­ Sandlin, a retired textile worker active in such costs were part of the cost of doing the Brown Lung Association in Greensboro, business." nials. N.C., and the wife of a brown-lung disease Congress "intended to impose such costs Burger, in the 7-to-2 decision, disagreed. victim. "We're going to celebrate." when necessary to create a safe and health­ The fact that the pardon board often com­ Joining Brennan were Justices Byron R. ful working environment," he wrote. It did muted sentences does not create a right to White, Thurgood Marshall, Harry A. Black­ not "contemplate any further balancing by any sort of formal proceeding. "Statistical the agency . . . ." probabilities standing alone generate no mun and John Paul Stevens. Justice Wil­ The court did not offer a definition of liam H. Rehnquist, Justice Potter S. Stew­ "feasibility." OSHA had decided that indus­ constitutional protections.''• art and Chief Justice Warren E. Burger dis­ try could implement its proposed cotton­ sented. Justice Lewis F. Powell, Jr., without dust standards without a severe threat to its explanation, did not participate. profitability. The study on which this deci­ DIPLOMAT ASSASSINATED Byssinosis, or brown-lung disease, is a sion was based was far less rigorous than chronic respiratory disease similar in its the elaborate cost-benefit analysis in ques­ symptoms to emphysema. In its mild forms, tion. HON. MILLICENT FENWICK it saps its victims of energy and often makes But Brennan said that OSHA's effort is OF NEW JERSEY it impossible to work, walk for long dis­ "certainly consistent" with the law. That tances or have sexual relations. In its most question is expected to prompt more litiga­ IN THE HOUSE OF REPRESENTATIVES severe forms, it can cause heart ailments tion. Thursday, June 18, 1981 and kill. The industry estimates that fewer Brennan did overturn one part of Baze­ than 2 percent of its workers are victims. lon's ruling. OSHA may not necessarily re­ e Mrs. FENWICK. Mr. Speaker, last Non-industry studies put the figure at 25 quire that textile workers moved within a percent. week another diplomat, at his post in plant to avoid cotton dust be held harmless Geneva, Switzerland, fell victim to as­ The cause is cotton dust, the stem and from any loss of benefits. leaf material that sticks to the cotton plant Rehnquist, joined by Burger, dissented sassination. This time it was a Turkish when it arrives at textile mills. As the plant from the majority ruling, stressing that it diplomat, the latest in a list that in­ is processed into yarn by high-speed ma­ did not prohibit cost-benefit analysis. They cludes 19 Turkish diplomats and their chinery, the dust flies into the lungs of tex­ repeated their theme, spelled out in earlier tile workers. wives and children murdered since cases, that Congress should have answered 1973. OSHA imposed requirements in 1978 to these questions, not the courts. bring down permissible cotton dust levels Stewart said the case should have been And so the sad story continues. Ter­ from 1,000 micrograms per cubic meter of settled without deciding the cost-benefit rorists in every corner of the world, air to 200 micrograms for the most hazard­ question. Rather, he said, he would over­ claiming one cause or another as justi­ ous sections of the mills. That level is said turn the regulations because OSHA had to be the equivalent of a grain of salt in a fication, have made murder an all too failed to justify its estimates of the cost to usual political comment. There is no box of air a meter (39.37 inches> long on industry. each side. Textile industry lawyers found some com­ answer, perhaps, except in the hearts Industry said that the equipment-giant fort in the opinion. They said that cost-ben­ of human beings. No religion seems to vacuum devices and elaborate ductwork-re­ efit analysis was not prohibited, though be able to stamp out violence. No law quired to meet that standard was too expen­ they conceded that would be a matter of seems to reach or discourage those sive and might even put smaller firms out of debate. They noted that the court appeared who bomb day-care centers and mar­ business. It also said there were cheaper to leave room for the use of cost-benefit ways of reducing the incidence of the dis­ analysis in determining which chemicals ketplaces, who kill policemen and ease, such as careful medical screening. should be regulated, if not how to regulate magistrates on their way to work, busi­ The textile manufacturers' institute and them. nessmen in their offices. 12 major textile companies sued OSHA, And OSHA officials underscored the It seems to begin in the feeling that saying the Occupational Safety and Health court's statement that it was not ruling out a cause that seems noble is reason Act of 1970 required OSHA to redo its regu­ a cost-benefit requirement for regulations of lations to determine that the costs to indus­ job safety unrelated to toxic and hazardous enough to break the law, to violate try bear a reasonable relationship to its ben­ exposure. personal or property rights. Until we efits to workers. In other action yesterday: get this clear, until we draw a straight It was the same theme struck by numer­ The court upheld the Government's appli­ line between lawful dissent and assem­ ous other industries in other court chal­ cation of one of the most widely used feder­ bly on the one hand, and illegal as­ lenge against OSHA regulations covering al laws aimed at business corruption. Navia exposure to such substances as lead and Turkette and others charged with narcotics saults on persons or abuse of property benzene. trafficking challenged the Racketeer Influ­ on the other hand, we will never A panel of the U.S. Court of Appeals for ence and Corrupt Organizations stamp out at the source the long ugly the District of Columbia, in an opinion writ­ statute on the grounds that it was not trail that leads in its extreme form to ten by Judge David Bazelon, rejected the meant for use against wholly illegitimate murder itself.• challenge to the cotton dust regulations and enterprises, such as narcotics rings. held that cost-benefit was not required. They argued that the law was primarily Last term, the Supreme Court, ruling on designed to combat the infiltration of legiti­ OSHA's benzene regulations, met industry mate businesses by racketeers. 13018 EXTENSIONS OF REMARKS June 18, 1981 CONGRESSIONAL SALUTE TO America as a fitting tribute to a teacher half century have truly enriched our SELMA MASKERY who has dedicated her life's work to educat­ community, State, and Nation. We do ing young boys and girls. Selma Maskery grew up in a family inter­ indeed salute a beloved lady, esteemed HON. ROBERT A. ROE ested in the New Jersey Public Schools. educator, and great American-the OF NEW JERSEY After her father was elected to the local Honorable Selma Maskery.e IN THE HOUSE OF REPRESENTATIVES board, he served on numerous committees including buildings, grounds and finance. Thursday, June 18, 1981 He was elected president of the board by his THE SMALL BUSINESS DISASTER •Mr. ROE. Mr. Speaker, this month fellow board members. LOAN PROGRAM as the many schools throughout our Young Selma was an avid sports woman land participate in commencement ex­ who participated on professional tours in golf. Born too early, she had to pursue a dif­ HON. IKE SKELTON ercises and honor their graduates, in ferent style since the world had not recog­ OF MISSOURI the Haledon public schools located in nized women on golf professional tours and IN THE HOUSE OF REPRESENTATIVES my congressional district the students the purses when available were too small and parents are including in their even for first place winners. Thursday, June 18, 1981 graduation ceremonies special plaudits Selma turned to education, one of the few e Mr. SKELTON. Mr. Speaker, I rise and commendations to a distinguished professions open to women in the early thir­ to introduce a bill which simply keeps member of the faculty, beloved teach­ ties. She pursued her studies with vigor and a promise previously made to a group er and good friend, the Honorable achieved her New · Jersey teaching certifi­ that this country cannot afford to dis­ cate in 1931. Later, she graduated from Pat­ Selma Maskery, upon the celebration erson State College and Fordham Universi­ regard-the farmer. Last summer, my of a half century of teaching our ty, awarding her a Bachelors in Education State and many others in the Midwest young people in the public schools of and a Masters in Administration. were declared disaster areas due to New Jersey. I know that you and our Selma Maskery has represented the Hale­ record high temperature and record colleagues here in the Congress will don Education Association for many years low precipitation. The farmers were want to join with the superintendent as membership chairperson and building particularly hard hit but they had of Haledon public schools, the Honora­ representative. In prior years she held every hope that they would not lose every­ ble D. Raymond Orsi, other members office including president. thing because of the Small Business The Haledon PTA has utilized the services of the faculty, students, parents and of Miss Maskery for fifty years. The execu­ Administration which offered assist­ her many, many friends in extending tive committee honored her with a life ance to disaster victims through the our warmest greetings and felicita­ membership pin presented to her for meri­ disaster loan program. In March of tions upon this milestone of achieve­ torious service. She continued to serve on this year, however, the rug was pulled ment in the field of education. the executive committee and rarely missed a out from under some of those who ap­ Mr. Speaker, when you reflect upon meeting. plied for this loan assistance when the the fact that the cultural, historical, During the past few decades, Miss Mas­ rules for qualification were arbitrarily and economic achievements, even the kery turned her attention to the area changed after many applications had Woman's Clubs. She was a charter member basic health, well-being and longevity of the Manchester Woman's Club and advi­ been solicited and accepted for proc­ of a state and nation depend in large sor to the Manchester Junior Woman's essing. In fact, some loans had already measure upon how well we educate Club. Her efforts at the local district and been made under the old regulations. each generation charged with the State level assisted the group to achieve This created a situation where one dis­ trust of carrying out its responsibil­ many noteworthy community efforts. aster victim received all the assistance ities and traditions, we can indeed be If there was work to be done, Selma Mas­ he needed to stay in business while his proud of Selma Maskery's outstanding kery could be counted to contribute her fair equally qualified neighbor was turned contribution to the quality of life and share. Some honored positions she has held down. My bill, Mr. Speaker, would rec­ are listed below. Along with the titles went way of life for all of our people. many volunteer nights or work insuring the tify this situation by requiring that As we commemorate the golden 50th success of numerous community projects. the Small Business Administration anniversary of Miss Maskery's out­ Charter Member and Past President of treat all victims of disasters declared standing service as an educator, with the Manchester Woman's Club; Charter Ad­ before March 19, 1981, equally accord­ your permission, Mr. Speaker, I would visor to Manchester Junior Woman's Club; ing to the regulations in force at the like to insert the following tribute for­ Past President of Junior Woman's Club of time of the damage.e warded to me by Superintendent Orsi Paterson; Past President of Junior Execu­ tive Club of New Jersey; Past President of on behalf of the students and faculty P.M. Club; Chairperson of numerous district of Haledon public schools in testimony NCFA ENDORSES DEREGULA- and State Level Woman's Clubs; Annually TION OF INTEREST RATES to the great respect and esteem we all presents the Selma Maskery Award and the feel for the quality of her leadership Martha Maskery Award to local Junior and sincerity of purpose in ever seek­ Woman's Clubs. HON. JOHN J. LaFALCE ing the highest standards of excel­ As Selma Maskery taught her students, OF NEW YORK lence on behalf of the youth of Amer­ she instilled in them a moral code of behav­ IN THE HOUSE OF REPRESENTATIVES ica. This citation, which provides a ior which became their code of living. brief biographical sketch of some of Young people· mature; size and appearance Thursday, June 18, 1981 change; but, the moral fiber remains. As e Mr. LAFALCE. Mr. Speaker, the the highlights of her biography in her parents, this is passed to their children and career pursuits, is as follows: their children's children. The geometric Senate Banking Committee last SELMA MASKERY, TEACHER FOR 50 YEARS, A progression never stops. month held 10 days of oversight hear­ JOB WELL DONE The world in which we live is a better one ings on the state of the financial in­ Whereas Selma Maskery has taught for because of Selma Maskery. The 1,500 chil­ dustry. The hearings provided Govern­ fifty academic years in the public schools of dren she taught are better for having spent ment, industry, and consumer spokes­ New Jersey, and a school year in her classroom. Friends of men with the opportunity to present Whereas those years have endeared her to Selma Maskery want her to know they their views on a variety of issues and more than 1,500 students who have received know this and thank her for her contribu­ set forth their legislative goals. tions to mankind. her instruction, and One of the issues that received con­ Whereas the community has received Mr. Speaker, I am pleased to seek untold benefits from her dedicated superior siderable attention was preemption of service to the Haledon Public Schools: Now, this national recognition of Selma usury ceilings on consumer loans. As therefore, be it Maskery and all of her good works. you recall, Treasury Secretary Donald Resolved, That Selma Maskery be hon­ Her wealth of wisdom, understanding Regan endorsed legislative efforts to ored and her name be entered in the CON­ and expertise in her lifetime profes­ deregulate interest rates on consumer GRESSIONAL RECORD of the United States of sion as an educator during this past loans during his appearance before June 18, 1981 EXTENSIONS OF REMARKS 13019 the committee. Another witness who themselves. With inflation as the prime creditor. Third, as will be discussed later, in­ presented compelling testimony on the mover, artificial barriers to competition in creasing. resort to bankruptcy by consumers need to lift artificial constraints on financial services have been lowered. has added costs to doing business which­ the interest rate that can be charged And, of course, there was no choice; they absent radical bankruptcy law reform-must simply had to be. be passed on as part of the cost of credit. on consumer loans was Robert B. As the capital market place demanded The newly proposed Interest Rate De­ Evans, senior vice president and gener­ higher and higher returns to compensate regulation Act of 1981, Rep. John LaFalce's al counsel of the National Consumer for the underlying erosion in the dollar's H.R. 2501, preempts all state usury Finance Association. value caused by inflation, money fled from ceilings for business, agricultural and con­ Mr. Evans noted that usury limits administered-rate savings . NCFA represents over 700 compa­ trust services, a consumer finance compa­ other States throughout this country. nies operating more than 15,000 offices ny's sole relationship to a customer is the Many of his former students have throughout the country. The consumer fi­ extension of credit. Turning down a custom­ nance industry accounts for about one­ achieved high distinction as profes­ er translates to losing that customer. Ac­ sional practitioners, and many have fourth of all consumer credit, or $75 billion cordingly, preemption and therefore con­ of the $300 plus billion outstanding. tinuing ability to serve its customers is a achieved national recognition in re­ NCFA appreciates this opportunity to vital issue for the consumer finance indus­ search, academics, and management. present its views on major problems con­ try. Perhaps most important of all, Dr. fronting the financial community. Our testi­ NCFA's support for federal intervention is Bianculli has won the respect and ad­ mony covers eight issues; I will touch briefly grounded in the changes which have over­ miration of professional practitioners, on some on them today, but respectfully re­ taken the consumer finance marketplace. quest that our full written statement be scientists, and academic colleagues, First, many states have inadequate ceilings many of whom were not his students, made a permanent part of these proceed­ for small loans. Second, over 15 billion dol­ ings. lars of credit extended by finance compa­ but who learned from the example he PREEMPTION nies is now in second mortgage lending; set. Without question, the central occurrence many states do not have rate ceilings that Dr. Joseph Bianculli will be missed of this decade for the financial community would enable profitable second mortgage by faculty, students, and administra­ is deregulation of the financial institutions lending by finance companies or any other tors at the University of Pittsburgh. 13020 EXTENSIONS OF REMARKS June 18, 1981 On behalf of his many friends, I want the cost-of-living, taxes have had to go up in I've been earning money, but I've had to to thank him for helping to make the order to pay for the Social Security System. give back to Social Security part of it be­ School of Pharmacy one of the finest INEZ. I also learned today that some Social cause I'd been earning above the maximum. in the Nation and to wish him the best Security money is spent for vocational reha­ NEWT. Inez, my great grandmother lived of health and happiness in his new en­ bilitation. It would seem that that money to be 92. She was very, very active and should come out of another fund. healthy. My favorite aunt is now 83 years deavors.• NEWT. Social Security does fund a tremen­ old, and I think she is more happy and dous range of benefits, and I think that it physically better off because she stays NEWT AND INEZ DISCUSS should return to being simply a retirement active. We're going to see an age open up for program. Franklin Roosevelt developed it as us in which almost every American remains SOCIAL SECURITY a basis for people who're retiring, not as active; not just for the money but, for com­ their total income, but as a basis that no munity involvement, for the excitement of HON. NEWT GINGRICH American should fall below. I believe that life, for the opportunity to be creative and OF GEORGIA we have to return the Social Security productive. We want to encourage that be­ System to its basic function. havior rather than discourage it. IN THE HOUSE OF REPRESENTATIVES INEZ. Do you think this is what President INEZ. I said to my friends that I plan to Thursday, June 18, 1981 Reagan is trying to do with his change in work as long as I can, whether it's for the program? e Mr. GINGRICH. Mr. Speaker, Inez money or as a volunteer. I've laughingly NEWT. President Reagan recognized that said I'll be working when I'm 95, but we'll Tillson of Jonesboro, Ga., and I dis­ retirement is something which, hopefully, see. cussed President Reagan's proposed every American will reach. We want retire­ NEWT. As I said earlier, I hope that ten changes for social security. She was in ment to be a time in which people aren't years from now we can have you back in the my office for a senior citizen intern­ frightened, but instead, will feel secure. In Sixth District Congressional offices as a ship when the administration's order to have a secure retirement, we have Senior Citizen Intern. changes for social security were first to have a secure Social Security System. President Reagan has recognized that it's INEZ. One thing that we were talking introduced. Inez interviewed me re­ going to require some changes. about today in our session with the other garding some of the President's pro­ I think this first set of proposals is the be­ Senior Citizen Interns was the idea of retir­ posals that concerned her most. ginning of the dialogue, not the end. There ing at age 62. I, of course, did not retire INEZ. I'd like to ask you a few questions will be plenty of hearings in Congress on until I was 65, but a friend of mine didn't about Social Security. I understand that the the modifications. While people should pay wait. He said that he felt that he was President has made it part of his economic close attention and should follow carefully coming out just as well even though the plan to cut Social Security by about ten per­ the debates, no one should be alarmed that payments were 80 percent of what he would cent. I wonder why President Reagan feels we're, in any way, going to dismantle the have gotten had he retired at age 65. How he needs to cut Social Security. Also, from a Social Security System. It will only be more do you feel about that? personal viewpoint, I wonder what will sound and more secure at the end of Presi­ NEWT. The current Social Security pro­ happen to my monthly payments. Will they dent Reagan's administration. grams which allow you to draw 80 percent be cut by ten percent? INEZ. I read in the Washington Star that for retiring at age 62 is clearly for men. Ac­ NEWT. President Reagan, in his campaign, the President intends to eliminate what is tually, there's a good argument for retiring pledged that he would not cut any existing called Double Dippers from government at 62 because men don't live as long as benefits. He's going to keep that pledge. No funds- a person who might be a retired civil women. Therefore, I guess a lot of guys one who is currently on Social Security service employee drawing an annuity and figure they ought to retire early and get needs to worry that his payment will be cut also drawing Social Security. Do you think their 80 percent for those three extra years in any way. The President's concern, look­ it is fair for an employee who has paid into because they may not be around to draw 100 ing toward the years ahead, is that more both of those programs to have one of them percent. Americans are living longer-which we're taken away? I think the original intent under Presi­ grateful for, but that poses problems. The NEWT. Inez, I don't exactly like the term dent Roosevelt was not to build a system to longer we live, through better medicines, Double Dipper. I think we have double encourage people to retire early. That's the more money we are spending on retire­ achievers, and we want to encourage people something that we've invented in recent ment. The Social Security System faces, in to have many careers. Ronald Reagan, him­ years. We have to look at how to solve that that sense, a long-term crunch. self, has had a pretty successful second problem. The government should never We're going to have to re-think part of re­ career as President of the United States. I change retirement programs on people tiring in America. We're going to have to often think of Colonel Sanders who only closer than five years to retirement. Some­ decide how we're going to finance retire­ opened his first fried chicken outlet after he one who is currently 60, or 59 does not have ment. But if you're on Social Security now, had retired. We want to encourage people to the maneuvering room to re-think what he you can rest assured that the President isn't lead full, rich and healthy lives. Psychologi­ is going to do if we suddenly change the going to cut your payments. cally and physically, people are better off if rules of the game. The government has got INEZ. I also hear that Social Security is in they are active. I want, for example, to lift to learn to be more responsible in planning real trouble financially. That in a year or the current limits on how much you can and must begin to look further down the two, it will be completely bankrupt and will earn and still draw Social Security because road. If we're going to bite the bullet, it's not have enough money to run. Is this be­ we want to encourage every American to be important for those of us in Washington to cause Social Security has taken on a lot of productive. In the long run, the answer to bite the bullet early enough for those of extra programs, such as scholarships given the so-called double dipping issue, and the you back home to digest it. It's unfair of us to children of people covered, such as bene­ answer to the whole federal employee ques­ to change things so suddenly that we dis­ fits to the permanently and the totally dis­ tion is to protect the federal employee's rupt the lives of so many individuals who abled, and some other things which have right to have his own pension, just as we do don't have the resources and the ability to been added? Is this the reason? with General Motors or the University of change their lives as the government NEWT. There are several reasons why Georgia. Then include them in Social Secu­ changes its rules. Social Security is in trouble. One, as I said, rity, just as we do the people at the Univer­ We'll need to look at a lot of possibilities is that people are living longer and that sity of Georgia or at General Motors. That for the Social Security program in terms of there are more people retiring. Second, the way everyone can work actively and agressi­ the best retirement age, the percent of ben­ great Baby Boom is over so we don't have as vely. If you happen to retire from the feder­ efits for early retirement, what benefits many new young people entering the work­ al government, it would be like leaving Gen­ ought to be in the program other than re­ force. The ratio of active workers to retired eral Motors to go work for the University tirement. I want to do it with the commit­ persons is dropping. Third, we have added a System. You would move from one place ment to Americans who are now in their number of things, like disability and college where you had a vested interest to another late 50's and early 60's. We are not going to scholarships, which weren't in the original place. It would give people a much better disrupt their lives in our planning. We are plan. And finally, the cost-of-living annual and fairer way to participate. They would talking about changes for the future, not increases have been pushed to ten, eleven, have earned the benefits due them from a the immediate present. twelve percent higher than anyone had ever complete lifetime of participation in the INEZ. Some people retire at 62 because imagined. It just takes more money if you're Social Security System. they're not really able to work. They're going to increase benefits ten percent from INEZ. I'm glad to hear you say that. You medically required to retire at 62. If the one year to the next. Since the average feel that people should be able to earn President follows through with his plans, worker's income has not gone up as fast as money after they're 65? they would certainly not have enough June 18, 1981 EXTENSIONS OF REMARKS 13021 money at 50 or 55 percent to live on. They basis of "state interest". The Govern­ issued by the Treasury prior to July 1, would have to have some other income. ment refuses to let the Khassin family 1982," and that "present administrative NEWT. One of the things we might have to emigrate because Mrs. Khassin pre­ practice will not be changed during this look at is the addition of a disability or period". hardship clause which would allow 100 per­ sumably worked with classified infor­ I hope this information is helpful to you cent for people who were physically or men­ mation many years ago. and your staff, and I intend to keep you in­ tally unable to continue. That is precisely At a time when our continued com­ formed of further developments in this the type of complexity the Congress has to mitment to human rights as an inte­ area. look at while considering the President's gral part of our foreign policy appears Sincerely yours, proposal. We can't automatically rubber to be in question, our support for the WILLIAM R. COTTER, stamp it and say, "Yes. We'll do it." It's our efforts of the Khassin family and the Chairman. job to pay very careful attention and look at STATEMENT BY HON. DONALD T. REGAN the fine print to make sure we've thought many other Soviet Jews who are being about all these options. denied their freedom becomes even Widespread apprehension · has resulted INEZ. The whole program is so complex. more critical. I hope that our efforts from the expiration on May 31 of the legis­ Many of us don't understand all the work­ here in Congress combined with a lative moratorium on the issuance of final ings of it. strong U.S. presence in Madrid may regulations and rulings with respect to NEWT. I'll go a step further. I doubt if soon bring the Khassin family's frus­ fringe benefits. For this reason the Treas­ anybody understands the whole system. trating and unhappy search to a ury has reconsidered its approach to this INEZ. Do you think that what we've talked difficult problem. We have decided that no about would get that 10 percent cut? joyous end.e regulations or rulings altering the tax treat­ NEWT. I'm not sure what we'll do. I'd be ment of fringe benefits will be issued by the willing to bet you there'll be a strong Social TREASURY ALTERS TIMETABLE Treasury prior to July 1, 1982. As a result, Security System in 1990. The retired Ameri­ present administrative practice will not be cans will be able to count on their govern­ FOR TAX REGULATIONS ON changed during this period. This decision ment. The American people will keep its FRINGE BENEFITS will alleviate the uncertainty created by the word to its parents and grandparents. What expiring legislation and provide ample op­ we're going to have to do here in Congress is HON. WILLIAM R. COTTER portunity for the Treasury to work with the work with President Reagan to try and find OF CONNECTICUT Congress at an appropriate time to develop a solution that allows the taxpayer to con­ an acceptable solution to existing interpre­ tinue working and buying a home and devel­ IN THE HOUSE OF REPRESENTATIVES tative and enforcement problems in this dif­ oping a life for his children. At the same Thursday, June 18, 1981 ficult area of the law.e time, the system should allow his parents • Mr. COTTER. Mr. Speaker, yester­ and grandparents to retire with dignity. We don't know what the details will be, but our day I received a communication from SUPPORT OF H.R. 3238, PUBLIC discussion has touched on the kinds of Secretary of the Treasury Donald T. BROADCASTING ACT AMEND­ things we'll be looking at as we examine Regan regarding the issue of taxing MENTS OF 1981 these programs. fringe benefits such as airline passes INEZ. I think all members of Congress are and tuition for children of faculty going to get long letters about it. members. The administration is back­ HON. ROBERT T. MATSUI NEWT. We should. There is no other pro­ ing off its stated intention to publish OF CALIFORNIA gram in America that affects more citizens regulations to specify the tax treat­ IN THE HOUSE OF REPRESENTATIVES than Social Security. Every citizen has a re­ sponsibility and an opportunity to pay at­ ment of various fringe benefits, and Thursday, June 18, 1981 tention to his government. He should tell has moved the timetable for publish­ •Mr. MATSUI. Mr. Speaker, diversity those of us who represent his future how he ing these regulations from July 1981 of ideas is essential to the preservation would like for us to represent him.e to July l, 1982. I have enclosed for the of our democratic system. Such diver­ information of readers of the RECORD sity, however, is only possible with the SOVIET JEWRY the text of a "Dear Colleague" letter broadest exchange of information and distributed this morning, as well as opinions. Commercial television and HON. PAUL SIMON the communication I received from radio cannot be called upon exclusive­ Secretary Regan. ly to meet this need. The principal OF ILLINOIS JUNE 17, 1981. IN THE HOUSE OF REPRESENTATIVES DEAR COLLEAGUE: In recent weeks, most thrust of commercial broadcasting Congressional offices have received numer­ must be to respond to the needs of Thursday, June 18, 1981 ous letters and other inquiries from individ­ mass audience in order to sell its pro­ e Mr. SIMON. Mr. Speaker, for sever­ uals concerned about the tax treatment of moted products. While this mass ap­ al years now, this body has participat­ fringe benefits. This concern and confusion proach is definitely a valid purpose, ed in a Call to Conscience Congres­ has become more acute since the Congres­ commercial broadcasters are unable sional Vigil for Soviet Jewry. Our con­ sional ban on the issuance of IRS regula­ nevertheless to respond to the myriad tions ended on June 1, 1981. stant efforts to keep the plights of At the hearing on the Select Revenue of individual needs of each communi­ hundreds of Soviet Jews before the Measures Subcommittee on May 13, both ty. public eye is one of the more produc­ John E. Chapoton, Assistant Secretary for The Corporation for Public Broad­ tive avenues we have available to Tax Policy and Commissioner of the Inter­ casting, coupled with its national net­ maintain pressure on the Soviet Gov­ nal Revenue Service, Roscoe L. Egger, Jr., work of local public broadcasting sta­ ernment to grant emigration to these testified. They indicated, at that time, the tions, alone possesses the programing many good people. Administration's intentions to publish pro­ flexibility to tailor shows to serve the Today, I would like to bring to your posed fringe benefit regulations in July unique characteristics of each commu­ attention the Khassin family. Gen­ which would not be effective prior to Janu­ nity. The importance of these local ary 1, 1982 and which would not be retroac­ nady Khassin is a 44-year-old mathe­ tive. stations to their communities can be matician living in Moscow with his During the last two weeks, confusion has best understood by a review of one sta­ wife Natasha and their two daughters, arisen among Members and the general tion's performance. My personal bias 17-year-old Helen and 4-year-old public over statements made or reported to requires me to select KVIE, the Sacra­ Judith. They first applied to emigrate have been made by various members of the mento-based public broadcasting sta­ to Israel in 1976, to be reunited with Administration as to their intentions in this tion, to illustrate the contribution Mr. Khassin's sister, and were refused. matter. To clarify this situation I corre­ public broadcasting has made to local sponded with Secretary of the Treasury Since that time, Mr. Khassin has been Donald T. Regan, asking him to personally and regional broadcasting diversity. dismissed from his teaching job at the review this matter. Within the financial limitations of university in Moscow. Repeated ef­ Secretary Regan, in a written statement, KVIE's production budget, every at­ forts to get their emigration request has stated that "no regulations altering the tempt has been made to respond to approved have been denied on the tax treatment of fringe benefits will be the viewing needs of the Sacramento

79-059 O - 85 - 37 Part 10 13022 EXTENSIONS OF REMARKS June 18, 1981 Valley. KVIE produces a number of labor, and so forth, plus a 15-percent ANNIVERSARY OF GENOCIDE programs which feature the unique at­ surcharge on manufacturing costs. DAY tributes of California's capital city. This should result in many millions of For instance, "Sacramento Week in dollars in profit to the taxpayers. Esti­ HON. TOM CORCORAN Review" is a closeup view of the most mated Treasury costs will be paid up important politi'cal stories of the week; OF ILLINOIS front so the Government will have no IN THE HOUSE OF REPRESENTATIVES Spotlight features local concerns, with risk exposure. Therefore, appropria­ an emphasis on minority and women tions are not necessary and budget Thursday, June 11 , 1981 issues; and Arts Alive presents cultural waivers are not required. e Mr. CORCORAN. Mr. Speaker, on information for the residents of Cali­ The LAOOC will sell the Olympic this 40th anniversary of the Baltic fornia Central Valley. holocaust I join with my colleagues in If such diversity of local programing coins to collectors and sports fans for a profit, and the net proceeds will be commemorating this tragic moment in is to be preserved, public broadcasting history. June 14, 1941, now referred to must be maintained and be adequately divided evenly between the LAOOC and the U.S. Olympic Committee to as Genocide Day, represents one of funded. H.R. 3238 authorizes $160 mil­ the darkest days in the history of the lion for the Corporation in fiscal year prepare our athletes and teams for world class competition. Baltic States. By commemorating this 1984, $145 million for fiscal year 1985, tragic occurrence, we are able to show and $130 million in fiscal year 1986. This legislation is wholeheartedly the world that we will not forget the More importantly, H.R. 3238 estab­ supported by the LAOOC and the events that led to Genocide Day and lishes a mandatory formula for the USOC. The LAOOC has considerable which still keep Latvia, Lithuania, and distribution of such funds, with 80 operating expenses connected with the Estonia in bondage to the Soviet percent of the funds provided for tele­ Olympiad, including facilities, person­ Union. vision being allocated for community nel, equipment, supplies, repairs, in­ service grants for local stations. All Americans should stand by the surance, special considerations for the peopie of Latvia, Lithuania, and Esto­ If the American people are to be handicapped, medical services, hous­ guaranteed new and varied choices in nia, for they desire the basic freedoms ing, food, security, safety, scoreboards, we cherish. As Members of Congress, local broadcast programing, H.R. 3238 timing mechanisms, print, and elec­ must be approved by the Congress. we should speak out against the inhu: tronic media services, special youth mane acts of the Soviet Union and Any substantial retreat from strong programs, tickets, and their distribu­ support the rightful independence of congressional support from public tion, volunteer expenses, uniforms, broadcasting would constitute a dis­ the Baltic States. service to maintenance of our demo­ publications, data processing, and On this 40th anniversary of Geno­ cratic heritage of diversity of ideas. dozens of other sports and administra­ cide Day, it is appropriate that we This we cannot allow to occur.e tive expenses. The USOC also requires renew our pledge to aid in restoring a substantial budget to carry out its freedom to those who seek its rewards. mission of preparing U.S. teams and We, the Members of the 97th Con­ THE OLYMPIC COIN ACT OF 1981 players. It provides grants to the vari­ gress, must pledge to continue our sup­ ous governing bodies of amateur port of Latvia, Lithuania, and Estonia HON. BILL LOWERY sports in this country as well as help­ in this struggle for the freedoms they OF CALIFORNIA ing a host of athletic organizations have been denied.• IN THE HOUSE OF REPRESENTATIVES like the Catholic Youth Organization, Thursday, June 18, 1981 State High School Athletic Associa­ FEDERAL MEAT INSPECTION tions, the Special Olympics for handi­ ACT ANNIVERSARY e Mr. LOWERY of California. Mr. capped, and so forth. Speaker, I am pleased to cosponsor today, along with the entire California It is important to recognize that of HON.Ede la GARZA delegation, legislation to authorize the the 147 National Olympic Committees OF TEXAS Secretary of the Treasury to enter in the world, the USOC is the only one IN THE HOUSE OF REPRESENTATIVES into an agreement with the Los Ange­ that does not receive financial assist­ les Olympic Organizing Committee to ance from the Government. In 1984, Thursday, June 18, 1981 mint a series of U.S. coins commemo­ the United States-as the host coun­ • Mr. DE LA GARZA. Mr. Speaker, 75 rating the 1984 games to be held in try-automatically qualifies in all years ago, President Theodore Roose­ Los Angeles. games. This means we will be able to velt signed the first Federal Meat In­ This legislation is identical to S. compete in sports in which we have spection Act into law. I want to bring 1230 recently introduced in the Senate not heretofore excelled. this anniversary to the attention of by Mr. CRANSTON, Mr. HAYAKAWA, and The LAOOC is a nonprofit corpora­ the House, because I think we should others. tion that receives no Federal, State, or all be reminded of the contribution The act honors the 1984 games, its local government financial assistance. our meat inspection system makes to national significance, and provides the Its income is from ticket sales, radio, our he:alth, to our standard of living, means for the Olympic Organization and television contracts, and licensing and to the national economy. to raise funds, without tax revenues, arrangements. The Olympic coin pro­ The successful program we have to finance this spectacular event. gram will be most helpful in staging a today, based on effective cooperation When enacted, details will be worked first-class summer Olymp'iad. between private industry and Govern­ out between the Government and the ment, grew out of two urgent needs. LAOOC regarding price, schedule of Any surplus from all sources left Today, the safety and healthfulness payments, the number and type of over after the games will be split up of our meat supply is taken for grant­ coins, delivery, sources of silver, and among three groups: The USOC, ama­ ed by our people to such a degree that gold, coin designs, and proportions of teur athletics in California, and vari­ we seldom think of it. But before the proof and uncirculated coins. ous amateur athletic organizations in passage of the first Inspection Act, The legislation provides upper limits the United States. this was not the case. There was wide for minting $1 alloy, $10 silver, $50 In summary, this is an innovative public concern about the sanitation of gold, and $100 gold coins in several way to assist the private sector to help some of the meat supply, and this gave issues and designs. The LAOOC will the Olympics without tax dollars. I rise to a second problem- the reluc­ pay all costs of minting, including urge Members of the House to support tance ·of some foreign countries to costs of metals, fabrication, packaging, this most worthwhile measure.e import our pork and beef because of a June 18, 1981 EXTENSIONS OF REMARKS 13023 perception overseas that the United and we would be surprised and BANKRUPTCY JUDGES' States had severe animal disease prob­ shocked by exceptions to that rule. RETIREMENT lems. The 1906 law has been followed by a In the last years of the 19th century, series of strengthening amendments HON. PETER W. RODINO, JR. a potential expansion in beef and pork produced by the House Agriculture OF NEW JERSEY exports was stymied by the belief Committee. In 1957, we passed an act IN THE HOUSE OF REPRESENTATIVES overseas that our country had an animal disease problem. An 1890 law providing mandatory inspection for Thursday, June 18, 1981 tried to solve the problem by requiring poultry products as well as for red meats: In 1967, there was a major revi­ e Mr. RODINO. Mr. Speaker, bank­ inspection of certain products destined ruptcy judges currently are the only for countries which maintained re­ sion of the 1906 act. The new law, known as the Wholesome Meat Act, U.S. judges who are not covered by the strictions. That action, however, did judicial retirement system. Their re­ not go far enough to solve the prob­ provided stronger assurances for con­ tirement benefits presently are de­ lem. sumers and more assurance for farm­ rived from the civil service retirement The 1906 Meat Inspection Act re­ ers and the meat industry that their system, which was not designed for moved that barrier to trade. It re­ products would be trusted. In 1970, we persons appointed to Government quired inspection of animals at slaugh­ added another act dealing with custom service in middle age, as is generally ter for signs of disease, and it required slaughter plants. the case with judicial appointees. condemnation of any animals showing With this foundation, we have long Today I am introducing a bill that will such signs. For the first time, the Fed­ since laid to rest the images of "The remedy the inequitable treatment ac­ eral Government, as well as the indi­ Jungle." Americans today trust their corded judges of the U.S. Bankruptcy vidual business, certified that only meat supply, and this trust is due to Court by enabling them to participate wholesome meat was leaving this in the judicial retirement system. Re­ country for foreign markets-and also inspection and to the commitment of tirement for bankruptcy judges under that only wholesome meat was going private industry to giving its custom­ this bill basically is modeled after the to the American consumer. ers uniform and consistently high­ retirement system provided for U.S. quality products. The USDA's Food Seventy-five years later, our foreign Tax Court judges. . Safety and Quality Service is current­ Public Law 95-598-the Bankruptcy trade in meat is a healthy contributor ly working to modernize and strength­ to the balance of trade. USDA's For­ Reform Act-established a new admin­ eign Agricultural Service estimates en the meat inspection program, but istrative structure for bankruptcy that nearly 342 million pounds of the improvements we hope to see cases and a new and functionally inde­ American meat were exported to other made would not be possible without pendent bankruptcy court system with countries last year. High U.S. inspec­ the cooperation-and in some cases expanded jurisdiction and powers. tion standards have helped make the technological support-of the When this legislation was considered these exports possible. meat industry. in the 95th Congress, the matter of a retirement plan for bankruptcy judges Inspection has also contributed to I submit for the RECORD, as part of reducing or eradicating animal diseas­ was postponed in order to insure my remarks on this important anni­ timely action on the measure, but es, particularly those which can versary of meat inspection, a copy of a spread to humans. This effort oper­ managers of the legislation in both letter which President Reagan has Houses agreed that the unifinished ates through two channels: USDA's sent to the Secretary of Agriculture, Animal and Plant Health Inspection matter of retirement would be taken Service cooperates with State govern­ John R. Block, expressing his con­ up in the next Congress. That task ments in identifying and controlling gratulations on this occasion: still has not been completed. animal disease; and the inspection pro­ THE WHITE HOUSE, Beginning in 1984, bankruptcy gram makes sure that if diseased ani­ Washington, May 19, 1981. judges will be appointed by the Presi­ mals reach a slaughterhouse, their Hon. JOHN R. BLOCK, dent, with the advice and consent of meat will not reach consumers. Secretary of Agriculture, the Senate, for a 14-year term. Judges Washington, D. C. appointed to the U.S. Bankruptcy The reduction in cattle tuberculosis DEAR MR. SECRETARY: Please accept my Court, like all Federal judges, should is a striking example of success in be persons of maturity, experience, these efforts. In 1918, an estimated congratulations on the 75th anniversary of the meat inspection program of the Depart· and ability. The inadequacy and in­ 4.38 percent of cattle had tuberculosis. equity of the present retirement By 1980, the disease was found in only ment of Agriculture. We Americans have come to take many system will limit the availability of three-tenths of 1 percent of our cattle, things for granted, including the safety and qualified persons to serve on the bank­ and there were no human cases traced wholesomeness of the meat and poultry we ruptcy court. This is particularly trou­ to the strain which affects cattle. eat each day. Over the years the "U.S. In­ blesome in light of the expanded juris­ While the 1906 Inspection Act and spected and Passed" mark has given us this diction and increased workload of the its amendments over the years have confidence and has served as a reminder of Federal bankruptcy courts and the in­ contributed to these benefits of im­ the important work of the Department of creased complexity of bankruptcy proved health assurance and increased Agriculture. cases. trade, the most significant contribu­ In more than 7 ,000 plants across the coun­ Under the bill which I am introduc­ tion made by the laws may be the way try, USDA inspectors work side by side with ing today, the basic retirement system in which they have changed the per­ industry, producing nearly 100 billion will give a judge one-fourteenth of the ceptions of Americans in the market­ pounds of meat and poultry products each salary of the Office of Bankruptcy place. year. From packing house to processing plant, Federal inspection has protected con­ judge for each year that he has served In 1906, in the wake of Upton Sin­ sumers here and abroad and has contribut­ as a bankruptcy judge after Septem­ clair's novel, "The Jungle," which ex­ ed immeasurably to the development of the ber 30, 1979-which date corresponds posed unsanitary conditions in the American meat and poultry industries. with the effective date of the expand­ packing industry and spurred passage To you and the Department and to all ed judicial functions set forth in the of the Inspection Act, many people ap­ those in industry who produce the food of new Bankruptcy Code-and one proached the meat counter with the the Nation, I extend my warmest congratu­ twenty-eighth. of the salary for each slogan, "let the buyer beware." Today lations. year served before October 1, 1979. we expect only wholesome meat prod­ Sincerely, This system compares with the U.S. ucts in accurately labeled containers, RONALD REAGAN.e Tax Court retirement system, under 13024 EXTENSIONS OF REMARKS June 18, 1981 which judges receive retirement pay at will turn them against applying for capped children, but that each child a ratio of 1 to 10, rather than 1 to 14, the permit. The costs involved by the be placed in the "least restrictive envi­ for years of service. process and by the delay are often ronment" consistent with his or her The objective of the bill is to provide fatal to needed projects. It is mandato­ education needs. This has resulted in an equitable plan for bankruptcy ry that we in Congress pull this law two big pluses-it has helped to dispel judges' retirement, to attract high-cal­ tight enough that the congressional many of the fears and myths sur­ iber individuals to the bankruptcy intent can be followed. The Washing­ rounding the handicapped, and it has bench, and to retain on the bench the ton Post reported a story on April 7 of helped to integrate the handicapped experience and ability of bankruptcy this year about a family in Appleton, into the school system as they will one judges presently sitting.e Wis., that found themselves involved day have to integrate into society. in a 22-month fight over 8 feet of Educating the handicapped in an envi­ backyard. ronment that more resembles the INTRODUCTION OF LEGISLA­ The law as it is now, with the courts "real world" has resulted in productive TION TO AMEND SECTION 404 interpretation and the zeal of the Gov­ citizens who are better trained to live OF THE FEDERAL WATER POL­ ernment officials, any farmer wanting in the society they find when their LUTION CONTROL ACT to dig a hole in a playa lake, or a formal education ends. homeowner that wants to fill part of a In addition, Public Law 94-142 has HON. JACK HIGHTOWER swamp in his backyard must go provided for early education for the OF TEXAS through the permit process. The handicapped. This early education not IN THE HOUSE OF REPRESENTATIVES permit applications can seldom be only prepares the handicapped for Thursday, June 18, 1981 filled out without the help of a lawyer school but it also enables professionals and an engineer. to detect earlier any potential physi­ e Mr. HIGHTOWER. Mr. Speaker, I This bill will define what constitutes cal, mental, or emotional problem that have introduced legislation to amend navigable waters, will make the time can be corrected. As with medicine, section 404 of the Federal Water Pol­ for consideration of permit applica­ early detection often prevents future lution Control Act, the section dealing tions tighter where the application complications and results in more indi­ with dredge and fill activities. must be considered within the 90-day vidual success stories. This effort is to draw a line between period, and it provides a system that It is important to remember that the what is in the national interest with States can assume the authority over passage of Public Law 94-142 has pro­ regard to the need for oversight in waters other than those that are de­ duced numerous benefits not just for dredge and fill activities and when termined to be "navigable." The law the handicapped, but for society as a that oversight becomes Government now offers no incentive to the States whole. Approximately 10 percent of interference in the private business of to take this responsibility because the population has some physical, citizens of this country. they have the Corps of Engineers, mental, or emotional disability. Most The Clean Water Act was passed in Fish and Wildlife, and EPA sitting of these people can make a real contri­ 1972 in a needed effort to clean up the there to deal with on any issue or bution to our economy, community, lakes and rivers of this Nation. The ruling. and Nation. Too often in the past we Congress assigned to the Army Corps I hope the Congress will take have forced those with a mental or of Engineers responsibility for provid­ prompt action and provide a law that physical limitation into an isolated ing permits for any work done on navi­ enables us to protect the lakes, rivers, and nonproductive role. Then we gable waters. Dredging, fill work, and and harbors and still allow people to compel them to take from society. discharges on harbors, navigable live their lives without getting a Public Law 94-142 creates an opportu­ rivers, and other areas used by the permit before they landscape their nity for those with physical limita­ public need some oversight to make backyard.• tions to give to their classmates their sure the work will not ruin the water­ educational system and ultimately to way for future use by the rest of the their society.e public. IMPORTANCE OF EDUCATION What has happened is that the FOR THE HANDICAPPED courts have taken the rather loose lan­ WHY WELFARE CAPITALISTS guage and extended the authority to HON. JIM SANTINI NEED A RUDE AWAKENING require permits over every possible OF NEVADA body of water in the United States. IN THE HOUSE OF REPRESENTATIVES HON.THOMASJ.TAUKE The Fish and Wildlife Service has Thursday, June 18, 1981 OF IOWA successfully joined with the EPA to in­ IN THE HOUSE OF REPRESENTATIVES clude playa lakes, common in my dis­ e Mr. SANTINI. Mr. Speaker, I com­ trict, to the section 404 regulations. mend my colleague from California Thursday, June 18, 1981 These are low places in the West that for providing us this opportunity to •Mr. TAUKE. Mr. Speaker, declining sometimes have water in them when it talk about a subject that is near and levels of productivity, investment, and rains. If we could work things out to dear to my heart, the education of the savings continue to present us with se­ where it would rain enough to keep handicapped. As the parent of a rious economic problems. The need for water in the playa lakes year around, handicapped child, I have had the op­ a tax cut to stimulate activities in my farmers and ranchers might be in­ portunity to view first hand the re­ these areas has never been greater. terested in giving the corps permit au­ sults of Public Law . 94-142, the law However, at the same time that the thority over them. At this time, it is passed in 1975 to provide a "free and Federal Government is providing the silly to even talk about these lakes appropriate" education for the handi­ business and industrial communities coming under the act. capped. I have been pleased with what with incentives to modernize and The redtape involved has made the I have seen. update their facilities and equipment, permit process drag on forever. The There has been a great deal of mis­ it must also send a clear signal that it General Accounting Office has made a understanding about this law and its will not bailout inefficient and mis­ study of three district offices of the concept of "mainstreaming" the managed industries-those that have Corps of Engineers that reports an av­ handicapped child into the public not been able to meet the challenge of erage processing time for permits school system. It is important to note fair competition. ranging from 120 to 300 days. Often that mainstreaming does not require Inflation must be brought under when people go in to see about apply­ that all handicapped children be control. So must Federal borrowing. ing for a permit, the redtape they face placed in classrooms with nonhandi- And our so-called free-market econo-

/ June 18, 1981 EXTENSIONS OF REMARKS 13025 my must be allowed to operate wher­ employes will be out of work, stockholders Monetarist economist, led by Nobel Laure­ ever possible and feasible. Various sec­ will lose their investment, and the creditors ate Milton Friedman and represented in the upper ranks more important, a cleansing wave of fear of the administration by Treasury Under­ time advocates of less Government will pass through the markets, flushing out secretary Beryl Sprinkel, are right to criti­ intervention and preservation of the similar debt-financed excesses that might cize the Fed for creating too much money in free market, should not expect finan­ have produced even worse suffering. This recent years. The grossly inflated statistics cial bailouts if their economic posi­ jolt of disinflation will create the sober ex­ show an upward trend line as eloquent as tions continue to deteriorate. Such pectation of more of the same, and prices Alps. bailouts are only counterproductive, as and interest rates will soon reflect the new But the monetarists tend to become en­ the attached article from the Wash­ trend and the market's perception of it. tangled in arcane technical and procedural If, however, Armageddon proves to have arguments over day-to-day Fed manage­ ington Post so rightly points out. Un­ helpful friends in Washington, prompting necessary intervention only exacer­ ment that obscure the demands of our situa­ the Federal Reserve to open the discount tion of opportunity and peril. Even if the bates inflation, destabilizes our credit window to the bankers and the Congress to Fed succeeds in restoring a semblance of markets, and rewards economic medi­ push through an Emergency Loan Guaran­ stability and predictability to closely ocrity and inefficiency. tee Act to "protect" all those jobs, financial watched weekly monetary statistics, this The article follows: panic may be averted. But it will be at the technical feat will not in itself alter the in­ cost of a deepening cynical conviction that, flationary psychology of the bond market. [From the Washington Post, May 31, 19811 in modern America, high inflation is for­ HELP CURE INFLATION: LET A BIG BUSINESS ever. Because the root of our inflation is politi­ Go BELLY UP SOON If the economic system is again short-cir­ cal, an act of political will in the face of cuited by political intervention, the peril is crisis is needed-and there are encouraging (By Richard J. Whalen> signs that this need is recognized. Late one Friday afternoon this summer, that inflation soon will accelerate to hyper­ inflation, sending prices and interest rates Fed chairman Volcker visited the White after the financial markets close and the House the other day at his request to chat brokers and traders scatter, the Dow Jones soaring to once unimaginable levels. Would you believe a 35 percent prime rate? It with President Reagan and his senior advis­ ticker may carry an arcane-sounding item ers. The unusual meeting bore witness to like this: "Armageddon Industries, one of sounds ridiculous. But only a few years ago, the present 20 percent prime seemed impos­ the policy consensus and political coordina­ the nation's largest corporations, has had sible. tion that may soon bring a turning point in its commercial paper sharply downrated by Americans today are paying the highest our economic history. credit agencies and is conferring with its "real" interest rates (adjusted for inflation) As Volcker remarks privately, for the past bankers." What this will mean, quite simply, in perhaps a century and a half. Bank inter­ decade and a half a speculative bet on fur­ is that debt-ridden Armageddon has run out est rates have soared to former loan-shark ther inflation has been a sure thing, and he of cash. levels because lenders demand an extra­ wants to upset that assumption. He also Over that summer weekend, anxious large "inflation premium" to protect them­ wishes to shake the complacency of bankers bankers will use the resourceful White selves. The memory of past inflation in­ who once worried about their risky loans House telephone operators to track down spires apprehension of worse to come. And going bad but who now assume they can high officials, and they will impart this mes­ it blights the future health of our economy shift that burden to Volcker's shoulders if sage: "Armageddon will go belly up on by destroying the predictability of future they get in serious trouble. Monday morning, the banks are very shaky, savings and investment returns. the unions will raise hell at the layoffs, and Ironically, the Fed's ability to protect or It also strikes terror in the hearts of bond punish the imprudent is more limited than the markets will panic-unless Washington dealers. A bond is a debt instrument (usual­ they imagine. Created in a much simpler po­ does something right now." ly issued in $1,000 denominations) paying a Will the president, the Treasury secre­ litical and financial environment 70 years fixed interest rate and redeemable at its ago, the Fed now lags behind the competi­ tary, the Federal Reserve chairman and a face value at maturity. Soaring interest handful of powerful congressional commit­ tive and technical forces transforming the rates have caused the market values of financial marketplace. Present-day markets tee chairmen have the political wisdom and bonds to plummet. So demoralized is the courage to withstand such pleas? We may are linked electronically on a global scale. bombed-out long-term bond market, accord­ The regulators are officially responsible, soon find out, for a major financial crisis, ing to traders, that everything bought in likely to be marked by spectacular but scarcely in control. the past 40 years shows a loss. When the New York Federal Reserve bankruptcies, appears headed our way. It is no secret why key Reagan policymak­ What Washington should do when it strikes ers regard the bond market as a crucial ba­ Bank's trading desk recently allowed the is simple: nothing. rometer of the economic climate and of the federal funds rate to float Wall Street is not convinced that Wash­ administration's prospects. The bond freely, as the Fed had indicated it would, ington has that kind of political will. That's market, which is much larger in terms of bank traders were shocked. "Mother wasn't largely why the Street remains skeptical of total investment values than the stock there," says a top Fed official, "and the the Reagan administration's economic pro­ market, is the indispensable source of funds money markets panicked." gram. Important as the Reagan steps to to finance all levels of government and the Panic, though frightening, can be thera­ date have been, painful budget cuts, prom­ most creditworthy U.S. corporations. peutic and profitable. The Rothschilds, who ised tax reductions and tighter monetary If the bond market collapses permanently, belong to the oldest school of banking, are and credit growth have been insufficient by as many observers now believe it has, we said to have a family motto that sums up themselves to dispel Wall Street's fear that will experience increasing difficulty in turn­ their centuries-old strategy: "Buy to the larger doses of inflation lie ahead. ing over our astronomical public and private sound of cannons, sell to the sound of trum­ Thus when a major corporation or bank debts. To maintain our precariously bal­ pets." begins to totter, as will likely happen with anced debt structure, we may be tempted to In the debt-burdened, inflation-besieged the prime rate climbing above 20 percent, follow the example of other nations and U.S. economy, the guns of a major corpo­ Wall Street believes Washington will pull resort to deliberate hyperinflation to de­ rate bankruptcy might well cause a liquidity back from the brink and uncork yet another fraud our creditors. panic in the markets. But markets swing be­ inflationary wave of money and credit to To encourage investors to buy bonds, the tween excesses, and the therapy of fear bail out all the illiquid companies and finan­ Federal Reserve must convince them that would quickly yield to the therapy of greed. cial institutions. Indeed, one banker report­ inflation is being brought under control. Institutional money managers, pension fund edly told Fed chairman Paul Volcker recent­ This, of course, depends largely on the fiscal trustees and other fiduciaries would hear a ly that if one of his bank's riskier loans goes posture and borrowing requirements of the flourish of trumpets summoning them to bad, the government will have no choice but federal government. When confronted with buy bonds offering the highest rates of to save his corporate client and his bank. chronic federal budget deficits and massive return in U.S. history, rates that some ob­ The government needs to deal that welfare Treasury bond issues, the Fed's vaunted "in­ servers think might not be seen again in capitalist a rude awakening, just as it has dependence" disappears. this century. been shaking up the rest of the comfortable Tradition and expediency dictate that the In the real world, a whiff of disinflation but unafforable American welfare state. Fed must provide the markets with the li­ hangs over glutted markets for overpriced If Armageddon is not bailed out and goes quidity required to accommodate the Treas­ surplus commodities ranging from oil to bankrupt, it obviously will mean at least ury's needs and minimize the "crowding­ suburban houses. To translate this trend temporary suffering for some: The company out" of other borrowers. Such "monetariz­ into financial terms means knocking the in­ will be reorganized and some of its assets ing" of debt has been the driving force flation premium in half, and that will take sold, its incompetent executives and hapless behind inflation since the mid-1960s. more than supply-side rhetoric. 13026 EXTENSIONS OF REMARKS June 18, 1981 Washington is naive to suppose it can today, the design of the CRBRP is DESIGN CRITERIA melt Wall Street's cynicism by offering at­ current and incorporates many fea­ Structural design criteria for tractively packaged promises, or even by de­ tures which are the most advanced in CRBRP design have been expanded to vising a tax cut compromise featuring new the world. I believe it is important to investment incentives. All this could easily include requirements for more com­ be undone, the Street suspects, and none of ptovide some additional detail in sup­ prehensive high-temperature structur­ it marks an unmistakable end to inflation­ port of that conclusion. While the op­ al analysis techniques, extensive mate­ ary business-as-usual. posite view is expressed by those op­ rials performance tests have been run There is only one certain way for Wash­ posed to the project, I have noticed a under a wide variety of prototypic con­ ington to gain Wall Street's attention and distinct lack of specifics in these criti­ ditions, and significant advances have respect, and that is to scare the hell out of cisms. Any objective assessment of the been made in the experimental and the sure-thing inflationary speculators and facts concerning the CRBRP design analytical capability which more accu­ make them true-believing capitalists again. will clearly show that the design has If Washington refuses the inevitable dis­ rately define the thermal-hydraulics tress call, breaking the assumed bail-out been continuously upgraded since the conditions under which structures pattern of more inflation, it will be reward­ project was first authorized. I do not must perform. ed with the biggest bond market rally in his­ dispute that a new design begun from In spite of the fact that the United tory .e scratch today would incorporate some States has lagged behind other coun­ different design features. However, tries in the construction of plants, the these changes would not be significant GENOCIDE DAY excellence of U.S. codes and standards in relation to the objectives of the and the pioneering work done by the project and the associated costs would CRBRP designers have established HON. HAL DAUB be enormous. The CRBRP will more these codes and standards as reference OF NEBRASKA than meet its design objectives for the for LMFBR's worldwide. In addition, IN THE HOUSE OF REPRESENTATIVES specific reasons cited below. the extensive materials tests in the Thursday, June 11, 1981 The CRBR design relies heavily on LMFBR base technology program that LMFBR development and experience are conducted in support of CRBRP, e Mr. DAUB. Mr. Speaker, I would obtained to date both in the United like to join my colleagues in recogniz­ as well as those materials tests con­ States and in foreign countries, espe­ ducted by the CRBRP project itself, ing the brave citizens of Lithuania, cially the firsthand expertise generat­ who have persevered so admirably in have resulted in a data base for mate­ ed by the design, construction, and op­ rials evaluation and performance not their struggle against the repression of eration of the fast flux test facility. the Soviet Union. The design is based on the following available elsewhere. Prior to 1940, Lithuania, Estonia, objectives, which were identified as IMPROVED REACTOR CORE RESTRAINT and Latvia were recognized as sover­ part of the congressional authoriza­ The core restraint system used in eign nations in Eastern Europe. The tion for the project: CRBRP is the first designed with the occupation of these Baltic States and To help confirm and demonstrate knowledge of radiation effects on fuels their subsequent division between the potential value and environmental and materials gained from extensive Germany and the Soviet Union ended desirability of the LMFBR concept as U.S. studies. This information has also their short history of independence a practical and economic future option been used in the fuel design, as well as and self-determination. for generating electric power, and to in the design of the reactor core com­ This continued occupation is con­ demonstrate the value of this concept ponents to meet the high performance trary to principle IV of the Helsinki for conserving important nonrenew­ criteria required for LMFBR fuel. accords which the United States sup­ able natural resources. These developments have resulted in a ports. Therefore, we cannot simply To help verify certain key character­ design superior to LMFBR plants close our eyes to this invasion of the istics of breeder powerplants for oper­ overseas, and which will be totally past while the Soviets use it as motiva­ ation in utility systems; that is, licens­ demonstrated for the first time in tion for further repression of other ability and safety, operability, reliabil­ CRBRP. countries. We must express our sup­ ity, availability, maintainability, flexi­ ADVANCED CORE CONFIGURATION port for the people of Lithuania who bility, and prospects for economy. Other developments in CRBRP reac­ have given their lives and continue to To develop technological and eco­ tor and core design are also notewor­ resist the oppression of the Soviet nomic data for the benefit of Govern­ thy. All LMFBR plants thus far have Union. ment, industry, and the public; to pro­ used the classical two-enrichment-zone I ask my colleagues who have not al­ vide a broad basis of experience and "homogeneous" core configuration in ready done so, to join in this com­ information for commercial and indus­ which the core is surrounded by a memoration of a struggle which has trial application of the LMFBR con­ blanket of fertile uranium-238 which been so courageously waged for the cept. is converted to plutonium during plant last 40 years.e To use to the maximum practical extent the technology developed by operation. CRBRP will use a new and Federal Government programs, recog­ innovative "heterogeneous" core con­ CLINCH RIVER BREEDER REAC­ nizing that the project is an indispen­ cept in which blanket assemblies con­ TOR: ITS ADVANCED DESIGN taining the fertile uranium isotope are sable part of the Government's overall dispersed heterogeneously throughout HON. COOPER EVANS long-range LMFBR research and de­ the active core region. This configura­ velopment program. tion improves plant breeding perform­ OF IOWA Design of the plant has proceeded in ance and significantly reduces core IN THE HOUSE OF REPRESENTATIVES full recognition of the need for devel­ fabrication costs. The heterogeneous Thursday, June 18, 1981 oping information and data applicable to larger follow-on plants, such as core configuration also substantially e Mr. EV ANS of Iowa. Mr. Speaker, as high-temperature design criteria improves safety characteristics, com­ possibly the only Member of Congress which will assure reliable performance pared with conventional designs, re­ with extensive practical experience in of LMFBR systems and components at sulting in safety margins that can be the design and construction of nuclear high temperatures and also the effects predicted with greater confidence. In powerplants, including several years of radiation on the properties and be­ addition, CRBRP's new core design in­ with the Atomic Energy Commission, I havior of the structural materials in creases ~he plant's versatility, allowing have followed the debate on comple­ the design of the reactor systems and it to be used as a test bed to improve tion to the Clinch River breeder reac­ components. The principal innovations fuel performance for subsequent tor project with interest. As I pointed in the CRBR design are summarized plants and results in significant reduc­ out in a "Dear Colleague Letter" below: tions in core fabrication costs. This June 18, 1981 EXTENSIONS OF REMARKS 13027 design, when used for larger have been incorporated in the design was selected in 1972 as 1 of 50 books to LMFBR's, will lead to breeding ratios of CRBR. The United States has been be rebound and placed in the White in the vicinity of 1.43; that is, for instrumental in advancing basic House Library. Six subsequent writ­ every atom fissioned to produce power, LMFBR technology since the incep­ ings have also been extremely success­ 1.43 atoms of new fissionable material tion of the program and, as has been ful, including "Hide or Seek," "What is produced, as compared, for example, shown, these advances have been in­ Wives Wish Their Husbands Knew to a breeding ratio of 1.18 for the corporated into CRBR design. CRBRP About Women," "The Strong-Willed French Superphenix LMFBR. thus offers the foundation on which Child,'' ''Preparing for Adolescence,'' OTHER REACTOR DESIGN INNOVATIONS to build a viable commercial LMFBR "Straight Talk to Men and Their Other CRBR advanced design f ea­ program for the United States, since it Wives," and "Emotions: Can You tures have been included in the reac­ will provide, at the earliest possible Trust Them?" Dr. Dobson and Dr. tor vessel support concept, core sup­ date, the technical confidence and the Richard Koch also coedited a graduate port structure with associated equip­ practical operating experience neces­ textbook entitled, "The Mentally Re­ ment, upper internal structure, reactor sary to move the LMFBR forward, tarded Child and His Family," which head concept and shutdown systems. keeping the breeder option open and has been called the most useful book Each will add significantly to the ready for safe, efficient commercial in its field by the Menninger Clinic. plant's reliability, maintainability, and application. Dr. Dobson's popularity has also been overall safety, while at the same time As you can see from the above dis­ extended to television. He has ap­ reducing component costs and fabrica­ cussion, the CRBR design can hardly peared on various network television tion schedules. be characterized as obsolete. The over­ programs to discuss his writings, in­ Advances in the CRBRP steam gen­ whelming evidence in support of cluding guest appearances on the erator design include features to CRBR's design adequacy combined "Phil Donahue Show," Tom Snyder's reduce stress corrosion, a potential with the lack of specifics by those crit­ "Tomorrow Show," "AM America," cause of minor leakage. For the icizing its design, strongly suggests a Barbara Walter's "Not for Women sodium pumps, internal structures lack of substance in these criticisms. I Only," the "Dinah Shore Show," and have been simplified and stress re­ encourage my colleagues to follow the "Look Up and Live." duced. The pump shaft was also short­ general consensus of the engineering The first activity of Focus on the ened by 8 feet, compared with the and scientific communities and sup­ Family was a weekend presentation, FFTF pump, increasing maintainabil­ port the completion of this important with 1,200 participants, to parents in ity and reducing equipment cost. The project whose design is up to date and Santa Barbara, Calif. From that begin­ design and fabrication of the interme­ will meet the LMFBR program objec­ ning in 1977 has come a ministry that diate heat exchangers take advantage tives.e now extends to national radio, televi­ of experience gained with FFTF and sion, counseling, literature publica­ provide a better capability for extrapo­ TRIBUTE TO FOCUS ON FAMILY tion, and related services. The clearest lation to larger units. signal that the work of Focus would be SAFETY AND KEY SYSTEMS DESIGN REVIEWS continued and expanded comes with A series of detailed systems reviews HON. FRANK R. WOLF the more than 3,000 letters received has been completed which assessed OF VIRGINIA weekly at the organization's headquar­ the safety and operation of key plant IN THE HOUSE OF REPRESENTATIVES ters in Arcadia, Calif., representing systems, with particular emphasis on Thursday, June 18, 1981 tens of thousands of enthusiastic re­ lessons learned from the Three Mile cipients of Focus on the Family Island accident. The reviews involved •Mr. WOLF. Mr. Speaker, I would services. the following areas: Decay heat re­ like to bring to the attention of my moval; sodium leaks in containment; colleagues an organization that is dedi­ The unprecedented response to Dr. inert gas processing; spent fuel trans­ cated exclusively to promoting the sta­ Dobson's film series (even though it is port, storage and cooling; thermal bility of the American family. The not a direct product of this ministry) margin beyond the design basis; Focus on the Family, a nonprofit, is also generating interest and requests sodium/water reactions; containment Christian organization, was founded for the other services of Focus on the isolation; control room layout; radioac­ by Dr. James Dobson. It was created Family. A film project consisting of tive waste; and auxiliary cooling. in 1977 in response to the enormous seven films was released in 1979 and These findings are being reflected in needs of husbands and wives and chil­ will be seen by at least 72,000 audi­ the plant design wherever appropriate. dren who live in a society that is in­ ences (3 million people), promising an The CRBRP design-initially based creasingly hostile to the basic family expanding influence across America. on guidelines generated from a consen­ unit. Although Focus is a young orga­ The series was awarded the Religion sus of technical, industrial and Gov­ nization, a virtual explosion of activi­ in Media Award for excellence in com­ ernment groups-has thus been con­ ties and programs has occurred since munication in 1980. tinually updated to reflect technologi­ its inception, each designed to Focus relies heavily on electronic cal developments in the United States strengthen the institutions of mar­ media. As of April 1, 1980, Focus pre­ and abroad. As a result, CRBRP repre­ riage and parenthood. The inspiring sents a daily radio series on Mondays sents the most advanced demonstra­ work of this organization deserves our through Saturdays. The series f ea­ tion reactor design in the world. Its recognition. tures Dr. Dobson and his cohost dis­ components are scaled by a prudent The organization's founder, Dr. cussing topics of relevance to family factor of approximately 3 relative to James Dobson, is a licensed psycholo­ living. Dr. Dobson has also produced a those of FFTF, and in turn the compo­ gist, a practicing family counselor, and series of 24 taped television programs. nents of a large commercial plant will an associate clinical professor of pedi­ Focus distributed approximately be increased by a factor of 3 relative to atrics at the University of Southern 135,000 pieces of literature during 1980 CRBRP. California's School of Medicine. He is and has made available copies of pam­ Development of the LMFBR is well also presently serving on the attending phlets, tapes, and books. advanced overseas. For years, several staff for Children's Hospital of Los Focus on the Family has enjoyed a foreign countries have been gathering Angeles in the Division of Medical Ge­ phenomenal growth since that initial valuable operating experience from netics. Dr. Dobson is best known for seminar in 1977. In only a matter of demonstration reactors. While France his practical books for parents and months, it has become a significant will have a larger, commercial-sized teachers, seven of which have ranked force on the American scene, helping plant in operation by 1984, it will not among the "top 10" Christian best to sustain the family. Dr. James include many of the advantages that sellers. The first, "Dare to Discipline," Dobson has obviously struck a respon- 13028 EXTENSIONS OF REMARKS June 18, 1981 sive chord as he speaks to the needs of inflation is Reagan's huge proposed increase continue to be subsidized sinee the tax rules the Christian home, as well as to fami­ in the defense budget, if he refuses to pay aren't indexed for inflation. Under these cir­ lies of other faiths, offering sound for it with a tax increase and fails . given phenomenon, therefore, the phenome­ to be harmless to human health are wrong, Some of the cases I have seen, if taken in­ non does not exist. the potential exists for an untold amount of dividually as isolated examples, might not We are gradually beginning to acquire illness and suffering. lead one to conclude that a case could be some knowledge of how herbicides and re­ Very sincerely yours, made for a cause-and-effect relationship. lated compounds affect the body. This ap­ JosEPH T. MoRGAN, M .D .e But when all the information is considered, pears to be mainly through a suppressive when the number of individuals involved is effect on various elements of a very complex taken into account, then I believe that some system of the body called the immune MFN STATUS AND THE EMIGRA­ credence must be given. In some cases the system, which when functioning normally TION OF JEWISH ROMANIANS person had been in good health until an enables us to adapt to our environment, to acute exposure occurred, following which the world around us. Failure of one or more TO ISRAEL there was illness. In some cases there was parts of the immune system can result in a such a close relationship between reexpo­ spectrum of illnesses ranging from allergy HON. ROBERT K. DORNAN sure and recurrence of symptoms, that it to cancer. At the present time many tests of OF CALIFORNIA would be difficult for a reasonable person to immune function are not readily available come to any conclusion but that the herbi­ to the average practicing physician. IN THE HOUSE OF REPRESENTATIVES cide was responsible. In a number of cases A distinction needs to be made between Thursday, June 18, 1981 the reexposure was blind; that is, the indi­ toxicity and individual susceptibility, as the vidual had a recurrence of the same illness latter is often not appreciated. Some indi­ e Mr. DORNAN of California. Mr. and did not learn until later that he or she viduals claim illness after a single exposure Speaker, I wish to call to the attention had been reexposed. to herbicides, yet other persons claim to of my colleagues the contents of a One might ask if these observations can handle and work with these compounds for letter sent to me, and to several other be proven. No, I cannot prove them by the years without ill effect. Toxicity, which Members, by Mr. Jacob Birnbaum, na­ criteria that would probably be required to could be referred to as the ability to act as a tional director of the Center for Rus­ satisfy skeptics. It is very difficult for the poison, implies a dose of a substance which average practicing physician to even prove will adversely affect a majority of those ex­ sian and East European Jewry. in the laboratory that an exposure has oc­ posed. On the other hand many materials In his letter, Mr. Birnbaum ex­ curred, that the patient has herbicides known to be toxic in greater concentrations presses his concern that the granting present in his blood or urine or tissues. It is are capable of causing severe reactions in of most-favored-nation Chicago. In 1946 they might even cut out the funds that AMVETS petitioned Congress for a federal enable poor people to be represented by law­ Thursday, June 18, 1981 charter. AMVETS, having displayed dignity yers to see that their rights were protected e Mr. ANDERSON. Mr. Speaker, and sound approach to National problems, against other individuals or against their those people who are familiar with my won the deep respect of Congress, and on government. July 23, 1947 President Harry S Truman I admit I was the one who said they might record over the years know that I have signed AMVETS Charter. The words of the even destroy the programs that preserved been a staunch supporter of programs Senate Judiciary Committee echoed some measure of decent life for those who benefiting our Nation's veterans. It is throughout the land: "the veterans of live in the inner cities of America. only right that we should be of assist­ World War II are entitled to their own orga­ We said a Republican Administration ance whenever possible, to those who nization" and AMVETS being "organized might tum its back on the cause of Human have helped this Nation in its hours of along sound lines and for worthy purposes Rights. need. While pursuing legislation, I . .. having demonstrated its strength and Some vicious members of the press even have often had the opportunity to stability, is entitled to the standing and dig­ said-thank goodness it wasn't any of us­ nity which a national charter will afford." that if Ronald Reagan was elected, he work with AMVETS-American Veter­ President Truman also commented, "Were I might try to impair the Social Security ans of World War II, Korea, and Viet­ a veteran of this war, I would prefer to have system. How in the world could the press nam. Twice before, I have inserted the a veteran of World War II looking after my have written such stories? history of the AMVETS into the CON­ affairs, than a veteran of some other war." In fact, as I watch this Administration an­ GRESSIONAL RECORD. So many changes To this day no other World War II veterans nounce new cutbacks in worthwhile pro­ have been made in the membership of group has been so honored. grams each week, I can't help but say, the House since I last shared the When the war broke out in Korea in 1950 "There you go again, Mr. President." AMVETS history with my colleagues and again during the Vietnam crisis in 1966, So let me try, for a few minutes, to put AMVETS requested Congress to amend the some things in perspective. The Democratic in 1977, that today I again commend it · charter so that those serving in the Armed Party, as the largest and oldest political to the Members of the House of Rep­ Forces would be eligible for membership. party on Earth, has known good times and resentatives. On September 14, 1966, President Lyndon bad. We have won and we have lost more AMVETS has invariably been in the B. Johnson signed the bill redefining the eli­ elections than we can count. We have won vanguard of progressive veterans' leg- gibility dates for AMVET membership- June 18, 1981 EXTENSIONS OF REMARKS 13037 "Any person who served in the Armed Programs, Veterans Services, as well as par­ man can live fearlessly under the free skies, Forces of the United States of America or ticipation in the World Veterans Federa­ to make the United States an ever better any American citizen who served in the tion, United Nations, All-American Confer­ land of "freedom for all", and to help the armed forces of an allied nation of the ence to Combat Communism, and Freedoms veteran, his widow and orphan live happily United States on or after September 16, Foundation at Valley Forge all means that as contributing members of society. 1940 and on or before the date of cessation AMVETS take a realistic approach to the Mr. Speaker, a partial listing of of hostilities as determined by the govern­ problems of the day. ment of the United States is eligible for reg­ In 1954 the first AMVET Silver Helmet AMVETS aims and purposes surely ular membership in AMVETS, provided Award-a replica of the G.I. helmets of provides one with inspiration and can such service when terminated by discharge World War II-was presented to General only evoke our best wishes for the con­ or release from active duty be by honorable George Marshall for his "enormous contri­ tinued success of this fine organiza­ discharge or separation." On May 7, 1975, butions to the United States in war and in tion. President Ford signed Proclamation 4373 peace." Subsequently Silver Helmets have To serve our country in peace as in terminating the Vietnam era and the cessa­ been presented to other great Americans. war; to build and maintain the welfare tion of hostilities, effective May 8, 1975 the Recipients include Presidents Hoover, Armed Forces became a peacetime service. Truman, Eisenhower, Kennedy, Johnson, of the United States of America The result of the proclamation is that mili­ Nixon and Ford; Pope Paul VI; Members of toward lasting prosperity and peace tary personnel entering the service for the Congress, other Government officials, the for all its inhabitants. first time on or after May 8, 1975 are not eli­ clergy, military, professions, business and To encourage, in keeping with poli­ gible for AMVET membership. the entertainment world who have made a cies of our Government, the establish­ The first National Headquarters for significant contribution to the welfare of ment of a concrete plan to secure per­ AMVETS was rented quarters at 724 Ninth our country and his fellow man. Presenta­ manent international peace and to Street, N.W., Washington, D.C. Then on tion of the awards is made annually. assist in the maintenance of interna­ April 18, 1952 President Truman dedicated A network of trained National Service of­ the first AMVETS-owned National Head­ ficers across the country provide free expert tional peace. quarters. This building, a five-story town­ advice to veterans and veterans' dependents. To inspire our membership a sense house, was located at 1710 Rhode Island Annually these officers handle thousands of of responsibility, and to develop lead­ Avenue, N.W. For fifteen years this building claims and obtain various benefits for the ership for the preservation of our served Headquarters and the National Serv­ deserving veterans. These involve hospitali­ American democratic way of life. ice Foundation. In 1965 AMVETS moved to zation, disability compensation, and educa­ To help unify divergent groups in a temporary location and the historic town­ tional benefits. the overall interest of American de­ house was torn down. On the same site ap­ AMVETS keep a watchful eye and take an mocracy. peared a modern three-story structure of active part in the legislation on "The Hill," marble and glass. On the 19th anniversary based on the assumption that "the veteran To train our youth to become pur­ of the signing of the Congressional Charter, will ultimately benefit from any measure poseful citizens in a democracy with July 23, 1968, President Lyndon B. Johnson that benefits the nation and, conversely, full knowledge of the responsibilities dedicated the new building. During the pro­ any program not good for the country as a as well as the privileges of citizenship. gram a beautiful life-like bronze bust of the whole cannot be good for the veteran." To cooperate with all fully recog­ President was unveiled by Mrs. Johnson. AMVETS are especially proud of their roles nized existing veterans organizations The bust is now located in the lobby of Na­ in the enactment of the "Korean G.I. Bill of in the furtherance of the aims of tional Headquarters. The printing, quarter­ Rights" and the."Cold War Bill of Rights." master, mailing, programs, membership, Domestic issues, national defense, and for­ World War II, Korea, and Vietnam public relations, legislative, accounting de­ eign relations are issues of importance and veterans. partments and the offices of the National grave concern to AMVETS. To insure the orderly return of the Service Foundation are housed in the head­ The AMVETS National Insurance Pro­ veteran to civilian life by protecting quarters building. gram provides a very complete portfolio of his rights as an individual while he is Hourly from Headquarters a Carillon, do­ group plans including Life, Hospitalization, still in uniform. nated by Schulmerich Carillons, Inc., High Limit Medical Catastrophe, Income To expedite and assist in the reha­ chimes and then at specific times musical Protection, High Limit Accident, and bilitation of the veterans by mainte­ classics resound through the area. These Cancer. Expense insurance for members of bells are significant of the other AMVET AMVETS or the Auxiliary, Sons of nance of employment services, spon­ Carillons throughout the United States. AMVETS, Jr. AMVETS, and their family soring educational opportunities, and The Memorial Carillon at Arlington Nation­ members. The associations and friendships providing counsel of insurance, hous­ al Cemetery to honor the memory of those of fellow AMVETS is without doubt the ing, recreation, personal problems, who died in the service of their country was most valued benefit of AMVETS member­ hospitalization, and veterans benefits. the first installation. This console is in the ship. In addition, participation in the many To act as liaison agent between the Arlington amphitheatre overlooking the service programs whether it be American­ veteran and the Government. Tombs of the Unknowns. It was on Decem­ ism, Civil Defense, Traffic Safety, or Reha­ ber 21, 1949 that AMVETS presented the bilitation, will provide a reward of real per­ To provide an organization to en­ Carillon to the nation with the message: sonal satisfaction. AMVETS is truly a courage fellowship among all veterans "While these bells ring, safely rest, freedom family organization. Wives, mothers, sisters of World War II. lives." AMVET Carillons also are now locat­ and daughters of AMVETS are eligible for To keep the public forever reminded ed at Golden Gate National Cemetery, San membership in AMVETS Auxiliary, while that the veterans of World War II, Bruno, Calif.; USS Arizona Memorial, Pearl sons and daughters between 7 and 17 years Korea, and Vietnam fought or served Harbor, Hawaii; Jefferson Barracks Nation­ of age may join Jr. AMVETS. The Fun and to preserve peace, liberty, and democ­ al Cemetery, St, Louis, Missouri; State Cap­ Honor Group of AMVETS is known as the racy for their Nation. itol, Salt Lake City, Utah; Truman Library, Sad Sacks, while its counterpart in the Aux­ Independence, Missouri; Garden of Patriots, iliary is the Sachettes. All male descend­ I joined AMVETS in 1947, and am Cape Coral, Florida; Federal Building, Chi­ ants, adopted sons; and stepsons of members proud to be a life member of Post No. cago, Illinois; Rock Island Cemetery, Rock of AMVETS and deceased members, or serv­ 2, Culver City, Calif.e Island, Illinois; National Cemetery, Mariet­ icemen who died and who would have been ta, Georgia; Hoover Library, West Branch, eligible for membership in AMVETS (pro­ Iowa; County Court House, Peoria, Illinois; viding the applicant is not eligible for mem­ BALTIC HOLOCAUST Camp Butler Cemetery, Springfield, Illinois bership in the parent organization> and who and VA Cemetery, Houston, Texas. is at least eighteen years of age, may join HON. HOW ARD WOLPE The "Green Hats" of AMVETS have the Sons of AMVETS. Each subsidiary orga­ OF MICHIGAN served the hospitalized veteran, the retard­ nization, including the National Service ed child, the shoeless orphan, and the Foundation, is governed by its own Consti­ IN THE HOUSE OF REPRESENTATIVES lonely serviceman. However, the granting of tution and elects its own officers; however, Thursday, June 18, 1981 scholarships has been a major endeavor of all activities are geared to further the aims AMVETS. Each year many scholarships are and purposes of the parent organization, •Mr. WOLPE. Mr. Speaker, this awarded deserving students. This program, AMVETS. month marks the 40th anniversary of originated in 1952, has awarded $250,000 in Time marches on, and AMVETS continue the Baltic holocaust, when, in 1941, study grants. Positive Americanism, Youth to work to attain world peace so that every the Soviet regime carried out the first

79-059 O - 85 - 38 Part 10 13038 EXTENSIONS OF REMARKS June 18, 1981 mass deportation of Baltic peoples NO TIME TO REMAIN SILENT sador to the UN, after all, have laid down from their homelands in Estonia, the line that lecturing our dictator allies Latvia, and Lithuania to Siberian slave HON. GEORGE E. BROWN, JR. gets you nowhere, and that persecution is merely a social error in certain regimes. labor camps. These deportations were OF CALIFORNIA an initial stage in the complete occu­ It was a notion advanced by Ambassaor IN THE HOUSE OF REPRESENTATIVES Jeane Kirkpatrick, in a Commentary article pation and annexation of the Baltic Thursday, June 18, 1981 that smote presidential candidate Ronald States by the Soviet Union. In the Reagan with its brilliance and mastery. name of all those who died 40 years e Mr. BROWN of California. Mr. Speaker, Ernest Lefever was a poor Alexander Haig, as soon as he could, ago, I commend to the attention of my choice for the human rights post at chimed in with the declaration that "inter­ colleagues the following statement the State Department, but he did echo national terrorism" had bumped human presented to me by Mr. Talivaldis the present administration's views, rights on the administration's priority list. Strautkalns, director of information and we should not ignore this fact. As Some human rights advocates believe that for the Latvian Relief Association of one who has fought for human rights it would be better to leave the post empty Kalamazoo, Mich.: than to give it over to someone like Lefever. throughout my long political career, I There is, however, a law that requires DECLARATION am deeply concerned and distressed to annual reporting on human rights records Each year at this time we recall the tragic see our country condoning the gross of various client nations and obliges the as­ events of June 17, 1940 when the Baltic human rights violations in such coun­ sistant secretary to pursue questions of States were occupied by Soviet troops and tries as Argentina, Guatemala, and El human rights with the secretary of state. In within 40 days forcibly incorporated in the Salvador, to name a few. We should the Reagan administration, which has Soviet Union. not be a haven for these rightwing warmly welcomed Argentina's president-dic­ The national sovereignties of Estonia, government terrorists, but condemn tator, General Viola, such exchanges might Latvia and Lithuania were trampled. The their behavior and remember that consist mainly of nods and winks. peoples of these nations were subjected to there are real people involved. Torture But if Ernest Lefever could not spark dis­ foreign domination. Atheism was extolled, in one country is no different than the cussion about human rights and foreign religion attacked, agriculture collectivized, torture in another country. policy, one spectator at his hearings could private property and industry nationalized, I urge my colleagues to fulfill their and did. That was, of course, Jacobo Timer­ mass murder with a large number of inhab­ responsibilities and to make the man, the former editor of La Opinion, and itants deported, non-Baltic peoples brought United States, not the symbol of re­ author of Prisoner Without a Name, Cell in. pression, but the worldwide symbol of Without a Number, an account of his 20 Although the United States has never rec­ freedom and justice for all-just as it months' imprisonment without charges by ognized the forcible annexation of Estonia, once was. I commend the following ar­ the government of Argentina. Latvia and Lithuania, and very recently the Apologists for the administration at once U.S. Congress affirmed this stand through ticle to my colleagues for their evalua­ picked up the whiff of danger. They raced H. Con. Resolution 200, we feel that more tion, and urge them to speak out for forward to discredit him as the protege of concrete steps should be taken by the Gov­ the rights of all humanity, no matter an Argentine whom the military govern­ ernment of the United States in presenting where they live. ment suspected of financing the left-wing the issue of self-determination to the Baltic [From the Washington Star, June 15, 19811 terrorists. William F. Buckley, Jr., a cheer­ States. TIMERMAN SHATTERS THE SILENCE leader for Chile's Pinochet, raised questions In this spirit, we-Estonian, Latvian and

' June 18, 1981 EXTENSIONS OF REMARKS 13039 LEGAL SERVICES CORPORATION budget figures. Arguments have been Cargo movements will be diverted to for­ REAUTHORIZATION made that Legal Services attorneys eign ports, hurting regional economies that are too involved in bringing suits that rely on water-borne commerce; Inflation will be fueled as the price of do­ HON. SAM GEJDENSON reflect their personal ideologies. In mestic goods and imports transported by OF CONNECTICUT fact, the great majority of cases han­ waterway will be pushed higher; and IN THE HOUSE OF REPRESENTATIVES dled by Legal Services attorneys are Exports, especially bulk commodities such routine matters. Family, housing, Thursday, June 18, 1981 as grain and coal, will be reduced because income maintenance, and consumer higher transportation costs make them less e Mr. GEJDENSON. Mr. Speaker, problems comprise the bulk of the competitive in world markets. thus adverse­ today I had the opportunity to vote cases handled by Legal Services pro­ ly affecting U.S. balance of payments. for the reauthorization of one of the grams. In light of these impacts, we urge you to most important and efficient federally The House today voted to authorize defer your proposals until a thorough analy­ funded programs currently operating sis of the full repercussions for increasing $241 million for the Legal Services waterway user taxes has been completed. in our Nation, the Legal Services Cor­ Corporation. I am pleased that this Congress, in enacting user fees for the poration. measure was successful, but I strongly inland waterways in 1978 with the passage The Legal Services Corporation was feel that we should not have been in of Public Law 95-502, was unsure of the ef­ established in 1974 for the purpose of the position of being pleased about a fects such taxes would have on the nation's providing quality legal assistance to cut of approximately one-third of the transportation system and therefore man­ those who could otherwise not afford budget of this important program. I dated a comprehensive study of their it. The Corporation currently provides hope that this funding cutback will be impact. The Departments of Commerce and funding for 323 civil legal assistance Transportation and other agencies are in distributed fairly among the programs the final stages of three years of work on programs for the poor, which operate throughout the country. I also hope this study which is scheduled to be deliv­ 1,400 offices throughout the country. that the Legal Services Corporation ered to Congress by September 30. We hope In 1980, programs funded by the Legal will be able to withstand this setback, you will delay any consideration of your Services Corporation handled 1.5 mil­ and continue to provide aid in achiev­ proposals until the study has been submit­ lion cases. ing the goal of equal access to jus­ ted, reviewed and commented upon by af­ President Reagan strongly opposed tice.• fected parties. passage of this reauthorization bill. The Members of the Pacific Northwest The administration wanted to include Congressional delegation feel strongly that legal assistance in a social services DEFERRING ACTION ON the waterway user tax issue must be seen in WATERWAY USER TAXES a broader perspective than simply balancing block grant to the States. This plan the budget or philosophically requiring full would have provided no funding for cost recovery from users. legal services. If the States chose to HON. RON WYDEN Increasing waterway user taxes also must provide legal assistance the money OF OREGON be seen as having a definite and adverse would have had to come from funding IN THE HOUSE OF REPRESENTATIVES impact on the development of an important for other worthwhile programs which mode of transportation, on regional econo­ would have already sustained a 25-per­ Thursday, June 18, 1981 mies, on the national economy. on export expansions, national defense, and, ultimate­ cent cut. e Mr. WYDEN. Mr. Speaker, today I ly, on relations with our major international I believe that access to justice is too wrote a letter to President Reagan trading partners. important to be left in such a precari­ asking that he defer legislation impos­ Moreover, federal assistance is afforded to ous position. There are few who doubt ing a waterway user tax. all major transportation systems in the that effective use of the judicial I understand the President's objec­ United States-and should be because it en­ system requires the assistance of coun­ tive is to raise additional revenues to hances the productive capacity of the sel. The elimination of the availability bolster the economy. I don't think he nation. Water transportation, which of counsel to individuals who cannot is taking into account, however, the through inherent efficiencies, serves as a afford to hire an attorney is tanta­ counterbalance to hold down rates in other devastating impact such a tax would transportation modes. It should not be sin­ mount to saying that there is equal have on regional and national econo­ gled out for a policy of full cost recovery justice-for those who can pay for it. mies. until national transportation objectives Legal assistance embodies our high­ Senator MARK HATFIELD and Con­ have been established. est ideals. It allows those who might gressmen TOM FOLEY, LES AUCOIN, JIM Coming from the Pacific Northwest, our otherwise look for other means to re­ WEAVER, LARRY CRAIG, DON BONKER, concern is chiefly with the Columbia/Snake dress the injustices they have suffered and MIKE LOWRY have joined me in River System, one of the nation's emerging to work within our judicial system. signing this letter. waterway systems which in a very real sense is becoming the "Northwest Passage" we Our Government is one of laws. How Below is the full text of the letter. have sought for decades. can we ask people to live by these HOUSE OF REPRESENTATIVES, There are 19 port districts on the naviga­ laws, while at the same time limiting Washington, D.C., June 18, 1981. ble shallow-draft portion of the Columbia/ their access to the system that deter­ Hon. RONALD REAGAN, Snake System. The largest is the Port of mines and enforces these laws? President of the United States, Portland, the West Coast's largest export The administration has contended The White House, Washington, D.C. port in terms of tonnage. The reason is be­ that its budget cuts were mandated by DEAR PRESIDENT REAGAN: As Members of cause it is one of the finest transportation the people in last November's election. the Pacific Northwest Congressional delega­ hubs, served by major Interstate highways, tion, we are writing to urge you and your three railroads and the Columbia/Snake However, a CBS-New York Times poll, Administration to reconsider proposals for waterway system. done at the end of April, showed that full cost recovery waterway user taxes. Northwest ports are representative of the 83 percent of those polled believed We recognize the objective you have of divergent navigation needs of ports that Federal spending for Legal Serv­ raising additional revenues in a time of re­ throughout the country. These ports in­ ices should be kept the same, or in­ newed fiscal responsibility. But we submit clude small and large ports; river and coast­ creased. legislation affecting major transportation al ports; deep-draft and shallow-draft ports; Many commentators have pointed systems also must take into account a ports which accommodate foreign exports out that the administration's insist­ broader range of objectives, including im­ and imports, as well as coast-wide and ence that the Legal Services Corpora­ proving the overall transportation system inland domestic trade, including breakbulk, and our position in world markets. containers, wheat, automobiles, bulks, agri­ tion be abolished does not center on While these increased taxes will raise ad­ cultural products and forest products. the need for mere fiscal austerity. The ditional revenues, they will do so at a signif­ The Port of Portland projects the com­ Legal Services Corporation operated icant cost: bined effect of shallow-draft and deep-draft on a budget of $321 million last year; a Development of mature, energy-efficient charges would reach as high as $23,750 for a paltry sum when compared to total waterway systems will be retarded; 50,000-ton ship loaded with grain for export. 13040 EXTENSIONS OF REMARKS June 18, 1981 Adding new construction costs of enlarging TAX EXEMPTION FOR SERVICE QUEENS BOROUGH BOARD OP­ the Bonneville Lock and deepening the AWARDS ACT OF 1981 POSES NUCLEAR WASTES SHIP­ mouth of the Columbia would bring the MENTS total fees for that same grain ship up to $63,750. HON. PARREN J. MITCHELL HON. GERALDINE A. FERRARO Under S. 809/H.R. 2959 and S. 810/H.R. OF MARYLAND 2962, the Columbia/Snake system is subject OF NEW YORK to fees for both shallow and deep· draft. The IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Port of Portland estimates a loss of 4 to 5 Thursday, June 18, 1981 million tons of oceangoing cargo from Co­ Thursday, June 18, 1981 lumbia/Snake River ports if these proposals e Mr. MITCHELL of Maryland. Mr. e Ms. FERRARO. Mr. Speaker, the are enacted. That loss would include con­ Speaker, today I am introducing a bill people of New York City are increas­ tainers, wood products, automobiles, dry that would encourage the use of U.S. ingly concerned over the possibility bulks and grain. Products bound for export savings bonds as service awards for that recently adopted Federal regula­ could easily be diverted by land transporta­ employees. tions will soon result in the resump­ tion modes to Canadian ports which are free Currently, many employees, espe­ tion of shipments of spent nuclear fuel of taxes or fees. through their city. The dropoff in cargoes would mean a $750 cially those in State and local govern­ million loss to the Pacific Northwest econo­ ments, receive pins or similar cachets As you know, on January 19, the De­ my, and potentially 15,000 fewer jobs. For a as rewards for dedicated or extraordi­ partment of Transportation published region already reeling with double-digit un­ nary service. The high cost of these regulations that would overturn local employment because of what high interest pins, however, is jeopardizing these and State restrictions on shipments of rates have done to the housing and timber programs. It is simply becoming too such hazardous radioactive materials. industries, this additional blow would be expensive to give a pin to everyone The New York City Health Code, staggering. who deserves recognition. which since 1976 has placed strict Possibilities for future investment also Louis Goldstein, Maryland's distin­ limits on such shipments, would be af­ would be diminished. The Port of Portland fected. The regulations are scheduled alone is planning to invest an additional guished comptroller of the treasury, to go into effect February 1, 1982. $300 million to expand facilities. Five port has come up with an alternative for During the Public Works and Trans­ districts on the upper Columbia are working his employees. He would like to pre­ portation Committee markup of H.R. toward navigation capabilities to improve sent U.S. savings bonds in lieu of pins 3403, the Hazardous Materials Trans­ their local economies. The Pacific North­ to employees with exceptional service portation Act, an amendment which I west, which is capital short because of re­ records. The system makes good sense. offered was approved which would stricted markets for goods and desperately It would encourage savings, and for needs to diversify, will be denied its best provide a means of shipping radioac­ multiple winners it would be more ap­ tive materials in the New York City option for long-term growth. preciated. After all, while one pin is a Excessive waterway user fees will have a area without endangering the lives of negative impact on ·the national economy nice momento, few people would want millions of New Yorkers. The amend­ and will result in inflation, reduced balance five pins. ment would prohibit the shipment of of payments and severe economic disloca­ Unfortunately, there is a problem large quantity radioactive materials tions. with this proposed system. Under cur­ through any col.Hlty with population Waterway transportation is in competition rent Federal tax laws, these bonds density greater than 15,000 persons with truck and rail transportation and serve must be included as taxable income. per square mile if alternative means of to hold down costs. If waterway rates are As a result, the recipient is forced to transportation, including barge or raised to cover user taxes, rail and truck pay tax on his commendation, some­ ferry transportation, were available. rates can be expected to increase up as well. thing that is not required if the award Only four counties in the country­ Beyond that, exporters will be forced to Manhattan, Queens, Brooklyn, and absorb waterway user costs if they are to is a pin. Clearly, the taxation of these bonds discourages their use as service the Bronx-would be affected. remain competitive in world markets. Since Water transportation has been used 43 percent of American exports are farm awards. successfully in the New York City area products, the burden will fall on the already To solve this problem, Senator in the past, and it must be used again. beleaguered U.S. farmer. CHARLES Mee. MATHIAS and I are in­ The land route specified by the DOT Other low-value, high-tonnage bulk com­ troducing similar bills that would ex­ regs would follow the Long Island Ex­ modities also will feel the pinch-including clude the value of U.S. savings bonds pressway through my district, over the coal, sand and gravel, fuels and fertilizers. from Federal and social security tax­ Queensboro Bridge-which is in des­ The American consumer won't escape, ation. We place a cap of $250 per year perate need of repair-into midtown either. About 85 percent of the cargo on the tax-free awards. Our bills do moving in U.S. waterway systems is bulk Manhattan and out over the George raw materials or energy products used in not change the taxability of the inter­ Washington Bridge. This route tra­ the manufacture of consumer products. est earned or the amortized value of verses the most densely populated Economic dislocations will occur because the bonds included in estates. counties in the country, needlessly ex­ as cargo movements are diverted or discour­ There has been a great deal of talk posing millions of Americans to severe aged, considerable public investment in ex­ recently about encouraging saving and peril. isting waterway and port facilities will be investing. Our bills, in a small way, The Borough Board of Queens on used less and have less value in generating will help in that effort. They will en­ April 22 adopted unanimously a reso­ economic activity and jobs. courage employers to award savings lution urging the New York City Mr. President, few issues are simple. We bonds and will lead others to invest in Council to take whatever acton is nec­ appreciate your efforts to find a more equi­ the future of our Nation. I ask each of essary to prevent implementation of table way to finance the operation, mainte­ the DOT regulations and calling on nance and construction of waterway facili­ my colleagues to join us in this effort the Congress to repeal the regs. I ties. All we ask is that you not move ahead to increase the sale of savings bonds would like to share the resolution with on these proposals until your Administra­ and encourage their use as service my colleagues. tion has examined the broad ramifications awards.• of increased waterway user taxes. Together BOROUGH BOARD RESOLUTION let us seek our shared goal of revitalizing Introduced by Borough President Donald America's economy.e R. Manes, Chairman of the Borough Board: Whereas, the United States Department of Transportation has enacted regulations which effectively remove New June 18, 1981 EXTENSIONS OF REMARKS 13041 York City's ban on the transport of large what our opponents in the interna­ al and national monopoly capital. On the quantities of nuclear wastes over our high­ tional system think of them before we hypocritical plea of "safeguarding the ways; contemplate any significant changes Bank's funds" its officials give preference to Whereas, New York City's regulations, countries with "stable political regimes", a contained in Section 175.111 <1> of the New in U.S. policy toward the banks. term that, more often than not, implies York City Health Code, provide a greater [Translation of article in "Economicheskaya military regimes. level of protection to the public than the Gazeta" <"Economic Gazette"> No. 51, for One of the affiliates of the World Bank regulations enacted by USDOT; December 19791 Group-IFC-proclaims its basic object to Whereas, said USDOT regulations were SURVEY-IBRD-THE SERVANT OF MONOPOLY be the financing of industrial undertakings promulgated without due regard for the CAPITAL in the private sector, and says so in its very fact that transport of nuclear wastes by Articles of Agreement. vessel is a feasible means of transport which The International Bank for Reconstruc­ The question of providing funds for un­ provides a higher degree of safety than dertakings in the public sector is, however, highway transport, tion and Development is taking an ever-increasing share in the neo-colonialist passed over because of their alleged Whereas, due to the extreme population unprofitability, and the high lending risk density in Queens and other parts of New expansion of imperialism. Bourgeois apolo­ gists seek to prove that the institution ren­ associated with them. During 1978, the ma­ York City, highway transport of nuclear jority of countries with a socialist philoso­ wastes must not be permitted since the con­ ders effective help in the social and econom­ ic development of newly-independent coun­ phy-Ethiopia, Afghanistan and the Peo­ sequences of a major nuclear accident are ple's Democratic Republic of Yemen, plus a too extreme to be tolerable, however remote tries. In particular, IBRD's President, Mr. Robert McNamara, has regularly called number of others that seek primarily to de­ the possibility: Therefore, be it velop the public sector of their economies­ Resolved, That this Borough Board, at the upon his hearers in numerous international forums to provide "assistance" to the devel­ did not receive a single loan from IBRD or initiative of Donald R. Manes, Borough its affiliates. President and Chairman of this Board, oping countries in solving their far-from­ hereby urges the Council of the City of New easy financial problems. The facts concern­ Speaking before the U.N. General Assem­ York to take whatever action necessary in ing IBRD's real activities, however, show bly on behalf of the participants in the order to prevent implementation of the that the Bank has always been, and re­ Havana Conference of Heads of State and USDOT regulations permitting highway mains, a staunch defender of the capitalist Governments of the Non-Aligned States, transports of large scale shipments of nucle­ economic system, is an important weapon of Mr. Fidel Castro drew attention to the fun­ ar wastes; neo-colonialism, and assists in establishing a damental difference between the develop­ Furthermore, be it resolved that this Bor­ private-enterprise sector in the economies of ment assistance furnished to the newly-in­ ough Board urges the Council of the City of developing countries. dependent countries by the Socialist coun­ New York to approve the resolution intro­ DISCRIMINATORY APPROACH tries and the "help" provided by the imperi­ duced by Council Member Orlow at the re­ alist States and their international organiza­ The official purpose of the Bank and its tions. Although the Socialist countries bore quest of Borough President Donald R. affiliates-the International Development Manes, thereby calling upon the United no responsibility for the economic back­ Association and the International Fi­ wardness of the developing countries, Mr. States Congress to enact legislation repeal­ nance Corporation -is the financing ing the USDOT regulations.• Castro emphasized, they were taking upon of social and economic measures taken by themselves the duty of assisting those coun­ their member countries, primarily the devel­ tries in overcoming it, basing such actions SOVIET VIEWS OF THE WORLD oping countries, in order to overcome their on one of the underlying principles of their economic backwardness.· This does not Socialist system-international solidarity. BANK mean, however, that if any of those coun­ tries applies to the Bank for help, the latter OPPONENTS OF INDUSTRIALIZATION HON. JERRY M. PATTERSON will willing by accede to that request. The The political prejudice displayed by the OF CALIFORNIA structure of IBRD is such that the Bank's Bank is only one feature of its operations. IN THE HOUSE OF REPRESENTATIVES final word is spoken by the United States, Another is shown by the fact that even which can block any decision that it does those recipients of IBRD loans which are Thursday, June 18, 1981 not like, and compel the Bank to refuse well-regarded by the bank are not allowed e Mr. PATTERSON. Mr. Speaker, I help if the country applying for assistance to make independent use of the funds they am placing in the CONGRESSIONAL is not acceptable, for some reason or other, receive to meet the needs of their national to the ruling circles in America. It is in the economies and populations, and achieve RECORD today an article translated light of this that the true purpose of social and economic progress in overcoming from the Soviet journal "Economic IBRD's activity must be examined. age-old backwardness. In the case of these Gazette." I think many of my col­ Figures depicting the activities of the countries IBRD pursues a policy designed to leagues might find it interesting. It is "World Bank", the term by which IBRD is keep them dependent on the World capital a biting critique of the World Bank often referred to in the press of Western market, and sets its face against any pro­ from the Soviet viewpoint. We some­ countries, may make a certain impression on gressive initiatives in the social and econom­ times hear in this country comments the uninitiated reader. At the present time, ic sphere. that the World Bank and the other 132 countries are members of IBRD, and A typical example in this respect is provid­ the Bank's capital, which is made up of ed by the International Development Asso­ multilateral development banks are fi­ their contributions, amounts to $41 billion. ciation . A great deal is said and writ­ nancing socialism or not supporting The total amount of loans granted by the ten about the activities of this most impor­ U.S. interests. It is useful, therefore, institution in 1978 reached a figure of $9.8 tant affiliate of IBRD, so far as its outward­ to see what a real socialist country's billion. ly concessionary terms of lending are con­ spokesman think about these multilat­ What is obvious, however, is the peculiar cerned. The way in which IDA credits are eral agencies. geographical distribution of the Bank's allotted by branch of activities, however, by Many of the charges in this article funds. As of June 30, 1979, three of the 132 no means attests to a wish on the part of are distortions or misstatements which countries belonging to it had received about 20 of economic growth of the newly-independ­ take things out of context. The author percent of all the loans granted by the insti­ ent States. is absolutely correct, however, when tution during the almost 30 years of its ex­ According to the data available, the fund­ he says that "the Bank has always istence. During 1978, apart from the almost ing of industrial undertakings constitutes been, and remains, a staunch defender traditional loans made to these three, IBRD less than 10 percent of all the loan oper­ of the capitalist economic system," supplied a number of Latin-American capi­ .ations engaged in by IDA. At the same time, and that it "assists in establishing a talist countries, as also Morocco and the about 20 percent of the Association's funds private-enterprise sector in the econo­ Philippines, with large funds. And this is are invested in agriculture and more than a mies of developing countries." understandable, for the countries men­ third in so-called infrastructure projects, Mr. Speaker, the World Bank and tioned act as bulwarks of private capital, mainly in the building of roads and the pro­ particularly foreign capital. vision of means of communication. Here too the other multilateral agencies are im­ The Bank does not even try to hide its dis­ the egotistical interests of imperialism show portant elements of U.S. foreign eco­ criminatory approach. IBRD's lending through most clearly-an undeveloped in­ nomic policy. They are not perfect in­ policy is aimed at shackling the newly-inde­ frastructure, particularly the absence of stitutions. They can be improved. But pendent countries with a type of develop­ roads and means of communication, pre­ it is important for us to understand ment that suits the purposes of internation- sents the international monopolies with 13042 EXTENSIONS OF REMARKS June 18, 1981 fewer opportunities for plundering, on neo­ independent States diverges radically from LEGAL SERVICES CORPORATION colonial lines, the economy of a developing the widely-proclaimed aims of the "Fight country. The Bank comes to the aid of the against Poverty". When analyzing one or monopoly corporations and out of its funds other of the projects proposed for financ­ HON. W. HENSON MOORE provides a basic infrastructure in economi­ ing, the Bank's experts show a marked tend­ cally backward countries. ency to consider the statistical and techni­ OF LOUISIANA IBRD tries to give a "theoretical" justifi­ cal data involved before the social aspects of IN THE HOUSE OF REPRESENTATIVES cation for its negative attitude towards the that project. Poverty is subjected, before all industrial development of the newly-inde­ else, to a quantitative appraisal, its social Thursday, June 18, 1981 pendent States. The Bank's last report on roots not receiving their proper share of at­ e Mr. MOORE. Mr. Speaker, today I World development has secured sweeping and at all times. I have ordered a complete though as a matter of law the Supreme unprecedented policy changes from Presi­ review of the agency's field audit and com­ Court itself has noted that government offi­ dent Reagan's new Administrator of Occu­ pliance officer evaluation procedures to cials may lawfully use force in executing pational Safety and Health which put an assure this." warrants, as a mattet of policy OSHA de­ immediate end to forced-entry inspections Hansen, expressing appreciation for clines to use force to carry out an inspection and reverse OSHA's hostile relationship Auchter's responsive reforms, said, "Those over an employer's objection. Instead, in the with business and industry. who have fought OSHA's abusive tactics for absence of exceptional circumstances, the The long-sought commitments received by so long have now won significant Agency agency will generally discontinue the in­ Hansen came this week in response to let­ concessions demonstrating a new attitude in spection upon the employer's challenge and ters he had written to Department of Labor the matter of safety priorities. Hopefully, seek compliance with the warrant through Secretary Raymond J. Donovan and OSHA we will now see OSHA abiding by legal and judicial procedures in which the warrant's Administrator Thorne G. Auchter protest­ constitutional procedures," he said. validity may be tested. ing forced-entry OSHA inspections of a con­ Hansen added that he planned to contact On the basis of my review of the facts in struction firm. Assistant Secretary Auchter, Secretary Donovan and Assistant Secretary this case, I conclude that OSHA's prohibi­ responding for Secretary Donovan, stated, Auchter again for further discussions re­ tion against the use of force was not violat­ "that the circumstances in this case were garding ways to make the new OSHA coop­ ed with respect to the Andersen inspection not such that OSHA should have conducted eration thrust even more beneficial to both since physical force was never used or the inspection over the employer's objec­ employers and employees. threatened. I do believe, however, that the tions; rather, the agency's usual recourse to circumstances in this case were not such further judicial proceedings would have HON. GEORGE HANSEN, that OSHA should have conducted the in­ been more appropriate." House of Representatives, spection over the employer's objections; Auchter, noting the requirements of the Washington, D. C. rather, the agency's usual recourse to fur­ Fourth Amendment and the Barlow deci­ DEAR CONGRESSMAN HANSEN: The Secre­ ther judicial proceedings would have been sion, said, "I regret that this incident oc­ tary has asked that I respond to your corre­ more appropriate. I regret that this incident curred, and, consequently, I have reempha­ spondence regarding OSHA's recent inspec­ occurred, and, consequently, I have reem­ sized the agency's general policy to all field tion activity at the B. B. Andersen Constuc­ phasized the agency's general policy to all personnel and have instructed that no de­ tion Company site in Arkansas City, field personnel and have instructed that no parture from it is to be made without ex­ Kansas. I apologize for the delay in re­ departure from it is to be made without ex­ press National Office approval." The Idaho sponding while I was becoming acquainted press National Office approval. lawmaker quickly pointed out that this new with the facts of the case and reviewing the In closing I want to reiterate that this ad­ adherence to due process will bring early various policies involved. ministration is committed to the belief that and welcome relief to many firms currently The Regional Administrator in Kansas the advancement of occupational safety and under threat of arbitrary forced-entry in­ City has provided me with the following fac­ health is a necessary protection of the spections. tual information. Based on a formal com­ American worker. To achieve better safety OSHA's new director emphasized that plaint alleging serious hazards, and adminis­ and health, however, the adversary spirit "this administration is committed to . the trative search warrant was sought from the that has existed among OSHA, employers, belief that the advancement of occupational United States District Court for the District and workers (as exemplified by the incident safety and health is a necessary protection of Kansas. In accordance with established in Kansas) must be eliminated. This goal of the American worker. He then confirmed procedures, the warrant was sought prior to has my highest priority. to Hansen the Administration's revolution­ attempting an inspection since the company Under this administration a two-pronged ary new policy of constructive cooperation ha_d previously made its position clear that approach will be taken to reduce this adver­ with employers and employees in line with no inspection would be permitted without a sary relationship. First, OSHA will provide the Congressman's long-held position. "To warrant. OSHA's application for a warrant a better mix of programs to assist employers achieve better safety and health," Auchter was granted by the court which determined and workers who want to eliminate work­ said, "the adversary spirit that has existed that the agency had established sufficient place hazards; for example, more emphasis among OSHA, employers, and workers must probable cause to perform an inspection. will be given to consultation and education be eliminated. This goal has my highest pri­ These actions were fully consistent with the programs. ority." Supreme Court's warrant requirements as Second, major improvements need to be Hansen, the National Chairman of STOP expressed in its Barlow decision. made in the agency's enforcement pro­ OSHA, who over the years has battled that The compliance officers, upon arrival at grams. I have already taken steps to reduce Agency's heavy-handed tactics and who led the worksite, presented management repre­ state plan monitoring, and I will take a the fight to the U.S. Supreme Court of the sentatives with the warrant. These company number of other steps to improve federal successful Barlow case resulting in the ne­ officials apparently refused to acknowledge OSHA's relations with its state plans includ­ cessity of OSHA inspectors to have a proper its validity and asked the compliance offi­ ing a review of the "benchmarks" issue. Tar­ court order before invading the privacy of a cers to leave. The compliance officers began geting of federal inspections will also be im­ business for inspection, said, "Counter-pro­ their inspection over the company's objec­ proved. The agency currently is experiment­ ductive methods and attitudes under previ­ tions. No force was involved on either side. ing with different targeting schemes that ous Administrations are finally going out The inspection continued through that day. will permit us to identify workplaces where the window. I am most gratified to see a On the following day, the compliance offi­ the most serious hazards exist. Moreover, I new and more reasonable OSHA emerging." cers returned to continue the inspection. am very concerned that OSHA compliance Auchter advised Hansen that under this Again the company officials asked them to officers perform their duties in a profession­ Administration a two-pronged approach will leave. The inspectors continued the inspec- al manner at all times. I have ordered a 13044 EXTENSIONS OF REMARKS June 18, 1981 complete review of the agency's field audit PRESTIGIOUS SCIENTISTS FOR perts within our organization, to come out and compliance officer evaluation proce­ CLINICH RIVER BREEDER RE­ on the side of the Clinch River Breeder Re­ dures to assure this. ACTOR actor Project University of Chicago; Miro M. has a long history of "serious acci­ ous funding for this most important project. Rather than to repeat the detailed analysis Todorovich, City University of N.Y.; dents and unhealthful working condi­ which led us to support the ongoing devel­ Thomas Pigford, University of Califor­ tions." opment of the Liquid Metal Fast Breeder nia, Berkeley; Alexander von Graeven­ The court this week did yeoman Reactor (LMFBR) technology in the United itz, University of Zurich; James Rain­ work in bringing intent into clear States-an analysis which by now must be water, Columbia University; Alvin focus in safety and health law, and in quite well known to all interested parties.:.._ Weinberg, Oak Ridge Associated Uni­ let us here summarize the main reasons versities; Norman C. Rasmussen, MIT; framing the issues with which. we will which compel most members of the SE. and Eugene Wigner, Princeton Univer­ be dealing.e Steering Committee, and many other ex- sity.e June 18, 1981 EXTENSIONS OF REMARKS 13045 EXPLANATION AS TO MISSED LMFBR equipment. Data already gramed sequential approach of Mercu­ VOTE gathered from the FFI'F have been ry, Gemini, and Apollo laid the ground­ most significant in verifying the oper­ work for the Space Shuttle program, HON. WENDELL BAILEY ational and safety characteristics of whose potential value to the Nation sodium cooled breeders. and mankind is now only dimly per­ OF MISSOURI The next sequential step in LMFBR IN THE 'HOUSE OF REPRESENTATIVES ceived even after an outstanding ini­ plant development is the design of the tial success. Thursday, June 18, 1981 350-MW electric (e) Clinch River Bringing any technology to a point •Mr. BAILEY of Missouri. Mr. breeder reactor plant experimen­ LMFBR technology is quite similar to edgment of the value of the design tal breeder reactor II bid fair to reach $150 billion. Ask ure goes to the very extreme of establishing enable them to firm up their plans for a bond dealer how many bonds he owns and absolute political control over the business implementing the technology when he will tend to answer, incredulously: of banking." Rep. Carter Glass of Virginia they are deploying breeders needed to "Own? Me, outright, unhedged?" He means brushed aside all these objections on supplement existing energy sources. that he owns as few as possible, because grounds that the gold standard would But, the key point of my message is nobody is sure what the dollar will buy in remain intact; (b) Federal Reserve notes, that we must get on with it now. We three or 10 or 30 years' time. Thanks to the though formally an obligation of the gov­ have come too far and recognized only high incidence of confusion, and thus of ernment, would in fact be secured by gold a small portion of the total potential market volatility, more interest-rate futures and sound commercial paper, and the contracts were traded on the Chicago Board Fed would be an "altruistic" institution, a of the U.S. program. It would not be of Trade last month than contracts in public body above the corrupting influence responsible on our part tll waver now wheat, corn or beans. All this leads back to of profit-making. Glass and Wilson, of and not recognize the LMFR's full the shifting value of money, which is nei­ course, carried the day. To United Cigar benefits. Let us start by supporting ther less nor more than what the govern­ Stores, which on Dec. 24, 1913, took out completion of the CRBRP!e ment says it will be. newspaper advertisements to celebrate the In monetary affairs, "the government" is signing of the bill, the Federal Reserve was Congress, which spends, and the Federal a "Christmas gift." BUST THE MONEY TRUST Reserve, which expands credit faster than Who can doubt that Root and The New the growth in real output. If one were a York Times have been vindicated? Sixty­ while millions of voters would be guilty of OF TEXAS seven years later, the nation is saddled with harboring a fugitive. It is fashionable for a fiat currency, persistent inflation and a IN THE HOUSE OF REPRESENTATIVES college professors and officials to pillory the very real "money trust." It is true that Thursday, June 18, 1981 Fed as if deficits and the government's off. there has been no panic lately: savings now­ budget assault on the capital markets didn't adays are gradually wiped out by the rav­ e Mr. PAUL. Mr. Speaker, on June 8, matter. They do. ages of inflation. Of political influence on Barron's newspaper carried an excel­ What is startling about the Federal Re­ the Federal Reserve Board, opinions vary. It lent editorial entitled "Bust the serve is its consistency. It was inflationary strikes us as passing strange that adjusted Money Trust." Pointing out that the under William Mcchesney Martin, who Federal Reserve Bank credit-the Fed's fi­ New York Times attacked the Federal once headed the New York Stock Exchange nancial assets, as adjusted for seasonal and Reserve in 1913 by saying that the and talked a much better anti-inflation technical effects-increased at the rate of Federal Reserve Act "goes to the very game than he played; under Arthur Burns, . 12.4% in the eight weeks prior to the Presi­ a conservative platitudinarian; under G. dential election last fall and by only 0.5% in extreme of establishing absolute polit­ William Miller, a party loyalist; and under the eight weeks thereafter. A spokesman for ical control over the business of bank­ Paul A. Volcker, a professional central the Federal Reserve Board in Washington ing," the editorial calls for the busting banker. It has bungled alike under the old calls the suggestion of favoritism a canard. of the Fed money monopoly-and mo­ operating procedure serve, as Lewis E. Lehrman, former presi­ of everything except its computer models To commemorate the 150th anniversary dent of Rite Aid Corp., avers, has become and its staff. It is striking over the past of the founding of the American savings the Interstate Commerce Commission of decade what little difference the incumbent and loan industry . are we worthy of it? Put another way, can Gold, like any other commodity, seeks its we go on like this? The second answer is PRESIDENT PROVIDES NATION WITH VISION best market. If its value were to fall here surely no. The point is well taken here that AND CLEAR THINKING but rise in Great Britain, for example, coins the date is not 1913, or even 1971, that the Q. What do you feel is the Reagan admin­ and bullion would take ship for London, or gold standard is only a technique and that istration's main accomplishment to date? be restacked in the vaults of somebody's nations in the past have subverted its disci­ A. Fundamentally, setting a new tone for bank. The beauty of the gold standard is pline . An oddity of the debate is that a gold economy, revitalizing our economic condi­ The case against gold seems to boil down standard is widely viewed as impractical, or tion and, specifically, the attempt to reduce to the following: the gold-coin standard was quixotic, while unsecured paper is somehow the inflation rate and the high interest associated with periodic deflations at the seen as down-to-earth. In the light of the rates. turn of the century; a gold standard of any evidence, the presumption, we submit, Q. What do you think of the administra­ kind would redound to the gain of the two should be the other way around. In 1972, tion contention that the only long-term way leading bullion producers, South Africa and Jacques Rueff, the distinguished French to aid the poorer minority communities is the Soviet Union; there would be too much economist, was invited to testify before the through programs that stimulate productiv­ gold or not enough. Moreover . He level of income or their station in life. markable thing about the gold-coin stand­ said: ". . . I must state my conviction that, The fact is that the state of the economy ard is the stability of prices it yields. Thus in the present circumstances, taking ac­ is disastrous. Something has to be done very in the U.S. between 1879 and 1913, when the count of the existing situation in the world, quickly about it. There are very few housing annual volume of world gold production the only practical solution is convertibility starts out there now, the savings and loan rose fourfold and the currency was fixed at into gold .... Saying that, I don't want to business is at one of its lowest ebbs since the $20.67 an ounce, the wholesale price index be provocative. I know how deep is the anti­ depression period, there is a general lack of scarcely budged

79-059 0 - 85 - 39 Part 10 13054 EXTENSIONS OF REMARKS June 18, 1981 production, the inability of the indus­ available for adoption. "The adoption Cutting off adoption subsidies isn't just try to fully utilize its current leases, assistance program under the Child cruel; it's expensive. The Congressional and the unique coastal environment of Welfare and Adoption Assistance Act Budget Office has estimated that the incen­ has been successful not only in the tives for adoption provided in the Child the central and northern California Welfare and Adoption Assistance Act would coast, that secretary Watt will come to placement of children in caring homes reduce administrative costs for foster care the decision that it is in the national but in drawing attention to and help by four billion dollars over five years. That interest for the northern basins to be for the requirements of special needs may be optimistic, but many states with excluded.• children. similar programs have brought these costs Whatever funding is trimmed from down significantly. In Oregon, for instance, the adoption assistance program may subsidies to families of 509 children saved THE 75TH ANNIVERSARY OF well be added in the foster care the state one million dollars in room and McGEHEE column. While the mathematics may board over a period of three years. Accord­ make little difference to some, it is the ing to the North American Committee on HON. BERYL ANTHONY, JR. Adoptable Children, the. average cost per children who are the victims of this child per year in foster care is half that of OF ARKANSAS budget battle. the cost per child per year in institutional IN THE HOUSE OF REPRESENTATIVES I recommend to my colleagues the care. We all agree that family life is better Thursday, June 18, 1981 following article from the May 30, · than life in an orphanage. What the repre­ New Republic and urge your opposi­ sentatives and senators who settle this ques­ e Mr. ANTHONY. Mr. Speaker, Sat­ tion to the inclusion of the Child Wel­ tion in House-Senate conference next urday, June 20, marks the 75th anni­ fare and Adoption Assistance Act into month should know is that it is also cheap­ versary of the founding of McGehee, the block grant charade. er.• Ark. McGehee was founded in March 1906, by Abner McGehee, an Alabama­ WILL WIDOWS BE NEXT? · Social legislation is rarely both humane born cotton ginner and planter. Well, and thrifty, but the Child Welfare and DONALD L. SCANTLEBURY Alabama's loss was our gain, for Abner Adoption Assistance Act of 1980, which Con­ McGehee planted the seeds of growth gress may scuttle, was an exception. Under and development in southeast Arkan­ this law, subsidies are given to families who HON. FRANK HORTON sas. This special city was transformed adopt children. This is good for the states OF NEW YORK from a cottonfield by the railroad because it helps reduce expenses for state­ IN THE HOUSE OF REPRESENTATIVES shops of the St. Louis, Mississippi run foster homes. It is good for the families because it eases the financial burden of Thursday, June 18, 1981 River, and Iron Mountain rail lines adoption, especially the burden of adopting which came there in 1905. Throughout a child with medical or psychological dis­ e Mr. HORTON. Mr. Speaker, last its history, McGehee has been known abilities. And obviously it is good for or­ night, Donald L. Scantlebury, the in our part of the world for its agricul­ phans. Chief Accountant of the U.S. General ture production as well as for being a But the administration has persuaded the Accounting Office and Director of its link on the railroad for North-South Senate Finance Committee to combine Accounting and Financial Manage­ service to the Midsouth. Since its funds for this program with other social ment Division, unexpectedly passed service funds in a block grant that reduces away. founding, some of Arkansas' finest the total by 25 percent. According to a May leaders have hailed from McGehee. Its 19 letter to the New York Times from For the past 35 years, Don has atmosphere of high morals, warmth, Senate Finance Committee chairman Bob served our country in various capac­ and pride seems to nurture the kind of Dole, the block grant program stipulates ities in the GAO. He served with the people who end up returning that kind that any state that reduces adoption assist­ Defense Division until October of of character strength to the city. ance by more than 25 percent will lose fed­ 1964, and with the Field Operation Di­ Today McGehee is a growing city of eral money. But because the program no vision as manager of the Washington longer would be an entitlement program, 6,000 who can testify to its efficiency, but rather a series of "appropriated entitle­ Regional Office from October 1964 to fortitude, and good old Arkansas ments," it is now less likely that adoption June 1971. spunk. The city of McGehee is a assistance subsidies will increase to meet the He was past national president of bright spot in the Fourth Congression­ real needs of families who adopt children. the Association of Government Ac­ al District of Arkansas. I would like And most states likely will make the 25 per­ countants, chairman of the steering for my colleagues to join me in cele­ cent reduction that the new law allows. As committee of the joint financial man­ brating the anniversary of this classic Daniel P. Moynihan, Democrat of New York, told his fellow senators on the Fi­ agement improvement program, and American town.e nance Committee before it voted to approve vice chairman of the National Inter­ the block grant, "We are going to put these governmental Audit Forum. He was IN OPPOSITION TO INCLUSION children in competition with the social wel­ also a member of the Council of the OF ADOPTION ASSISTANCE IN fare professionals and the administrators American Institute of Certified Public BLOCK GRANTS and the bureaucracies. . . . These children Accountants and the executive com­ will lose out in the process." mittee of the National Council of Gov­ Budget-cutting through block grants is shrewd policy. Senators and representatives ernmental Accounting. HON. JAMES L. OBERSTAR He has received achievement awards OF MINNESOTA don't want to seem like Dickensian villains, so nearly all of them voted for the Child from the Association of Government IN THE HOUSE OF REPRESENTATIVES Welfare and Adoption Assistance Act last Accountants and the General Ac­ Thursday, June 18, 1981 year. How then could they turn around and counting Office, including GAO's reduce the ten million dollars that had been highest award, the Comptroller Gen­ e Mr. OBERSTAR. Mr. Speaker, the allocated for adoption assistance? By incor­ use of block grants to eliminate many porating that money into a block grant and eral's Award. He was also the author outstanding social programs in the cutting 25 percent-it's up to the states to of a number of articles on accounting name of local autonomy is a sham, but decide which 25 percent-from the total. A and auditing subjects which have ap­ the sentencing of the Child Welfare senator who voted to put adoption assist­ peared in various professional publica­ and Adoption Assistance Act of 1980 ance into a block grant may now comfort­ tions. to such an end is socially unacceptable ably argue that the states should maintain In the years that I have been the and fiscally irresponsible. payments to orphans at the expense of ranking minority member on the "welfare cheaters." The problem with this The $10 million allocation for adop­ argument is that welfare cheaters do not House Committee on Government Op­ tion assistance pales next to the $400 obligingly separate themselves out from erations, I have had many occasions to million per year of Federal AFDC pay­ non-cheaters. They have to be found, which work with Don. During that time, the ments to foster homes which care for takes time and money. In the meantime, or­ committee came to rely heavily on his the 100,000-plus children currently phans will pay the price. expert advice and wise counsel con- June 18, 1981 EXTENSIONS OF REMARKS 13055 cerning Government financial and churches. Not having sufficient political would receive the benefits of the education management issues. power to restore the tax monopoly which it tax, even their own. Don Scantlebury has served the citi­ had enjoyed in the pre-Revolutionary War Unfortunately many justices have zens of our country well. His presence period, the Episcopalian church had orga­ brought to the court an unquestioning ac­ will be missed.• nized a coalition of Christian sects behind ceptance of the unwarranted claims of the an Assessment Bill <1784) whose prime pur­ public school. They accept this school as pose was exclusive tax support for Christi­ genuinely public, but, since all schooling is ON THE TUITION TAX CREDIT anity, with taxpayers being given the option public in teaching academic subjects and BILL, S. 550 of assigning their assessments to the reli­ private in imparting educational philoso­ gious society of their choice and with each phies, there can no more be one public such society, with two exceptions, author­ school than one public church. They accept HON. EDWARD J. DERWINSKI ized to make "a provision for a Minister or this school as a secular institution, but OF ILLINOIS Teacher of the Gospel of their denomina­ there is no schooling thi;i.t is not entangled IN THE HOUSE OF REPRESENTATIVES tion, or the providing places of divine wor­ pro or con with the ultimate commitments ship, and to none other use whatsoever." Thursday, June 18, 1981 or religions of taxpayers. They accept this These two documents overthrew what the school as neutral and nonideological, but e Mr. DERWINSKI. Mr. Speaker, people of the day understood to be an estab­ there is no neutral and nonideological Frank Brown, professor of economics lishment of religion, namely, the practice of schooling, a fact well-known to those who at DePaul University and chairman of taxing the public for the exclusive support understand the schooling process. They the National Association for Personal of the ministers and church buildings of one accept the school as nonsectarian, but, in Rights in Education from dents in church-related schools. sonal rights of parents stand on their own which these tests have evolved was itself If Justice Black and his allies on the court constitutional merits and may not be mini­ tainted by gross misapplication to the divi­ did not get their justification for denial of mized or destroyed by reason of any rela­ sion of education taxation of James Madi­ tax equity to such students from Madison's tionship between government and any son's Memorial and Remonstrance and Memorial and Jefferson's Bill, where then church or school. Thomas Jefferson's "Bill for Establishing did they get it? We contend that their argu­ In this regard, since schooling is inextrica­ Religious Freedom in Virginia" and by un­ ments are those of the dominant mid-19th bly tied in with the religious commitments examined appeals to religious controversies century sects which, in establishing the of many parents, the appropriation by gov­ in Europe and colonial America. state public school system,-a move influ­ ernment of a monopoly of the education tax Jefferson wrote his Bill, which was intro­ enced by many factors, not the least of for its own schools constitutes a violation of duced into the Virginia General Assembly in which, as demonstrated by Professor Jor­ the Establishment Clause. However, by as­ 1779 and enacted with some amendment in genson of the University of Missouri and suming that the public school is secular and 1786, to outlaw monopolistic tax support for others, was Know-Nothingism, an intolerant neutral, the court has come to the grotesque any one church or any one religion. Madi­ Nativist crusade,-imposed on the American conclusion that the Establishment Clause is son wrote his Memorial in 1785 as part of a people a novel religious test whereby only violated not by the public school tax mo­ successful struggle to defeat in that year those who would assent to the allegedly nopoly but rather by legislation trying to the efforts of the Episcopalian church to nonsectarian, but actually Protestant ar­ provide tax equity for long-suffering dis­ regain tax support for its ministers and rangement within the new state school senters. 13056 EXTENSIONS OF REMARKS June 18, 1981 Again on the Establishment Clause our ~e- S. 550 is a step to educational freedom and clothing drives, a senior citizen examination should make the necessary dis- that is worth every cent.e center and counseling services. tinctions between the tax against which Once again, St. Gertrude's has Madison and Jefferson inveighed and the tax involved in providing some measure of ST. GERTRUDE'S OF FAR ROCK- become a parish in debt-but always equity for families which might bring it to a AWAY, N.Y. 70TH ANNIVERSA- with a large heart, giving what it has church-related school. In the first case the RY to those in greater need, reaching state wills that the tax go to a specific pre- out-an oasis for all in need. f erred church or religion; in the second case Mary Lu Plunkett has demonstrated the parent, and not the state, decides which HON. JAMES H. SCHEUER her concern and interest in the school is to be the beneficiary. OF NEW YORK Rockaways by her willingness to The argument over the distribution of education taxes sometimes invokes the ques­ IN THE HOUSE OF REPRESENTATIVES devote time and energy to effectuate tion of the secular function of the state. If Thursday, June 18, 1981 change in the area. Professionally, secular function means that the state has Mary Lu is the secretary · to the obligations to see that the children of the e Mr. SCHEUER. Mr. Speaker, St. Queens County Democratic Executive Gertrude's Roman Catholic Church in society should learn reading, wri~ing, ~n? Committee, which is chaired by other academic subjects, then this defmi­ the Far Rockaway section of my dis­ Donald R. Manes. As my Queens tion can be accepted. But, if secular func­ trict will be commemorating their 70th County colleagues will no doubt attest, tion is taken to mean that the state may tax anniversary on Saturday, June 20, any title short of "Ms. Democrat" will a pluralistic public, including those who with a dinner honoring two Rockaway prefer religiously-oriented schools, and then not suffice. Her lengthy service to the community leaders: Mary Lu Plunkett party has seen her weather the orga­ offer the taxes only through a state school and Sam Sperber. Donald R. Manes, permeated with a secular humanism .t~at is nizing of more dinners, cocktail par­ at odds with the values of many citizens, the president of the Borough of ties, and meetings than I am sure she then this definition violates the religious Queens, has pr~claimed June 20 ~t. would care to remember. She is also a freedom guarantees of state and federal Gertrude's Day m Queens County m member of the Queens chapter of the constitutions. honor of this small but dedicated con­ Discussions of religious values in the American Cancer Society. Mary Lu re­ gregation. I would like to share with sides in the Belle Harbor section of schooling brings to mind one of the most my colleagues some of the heartwarm­ significant changes in American education, the Rockaway Peninsula with her hus­ namely, the present-day development of ing facts about the history of St. Ger­ band John and here children Jamie Christian schools. Their founders come for trude's. and Steven and Steven's wife, Nancy. the most part from some of the religious St. Gertrude's was founded in 1911, Samuel Seymour Sperber has been a sects which in the mid-19th century created but did not have a permanent home lifelong resident of the Rockaway the state public school as a nonsectarian until 1923 when the church was moved Christian institution but now, disillusioned community. Mr. Sperber grew up in to the corner of Amstel Boulevard and Arverne where his parents, Esther and that their religious practices and values Beach 38th Street. Father Fenarty have been supplanted by secular humanism, Hyman, owned a meat market for over they are leaving the public schools to form became the first pastor of this small 50 years. Sam attended Public School their own schools. Some critics attack these parish where Sunday collections aver­ 42, Derech Emunoh Hebrew School, schools as racist, but, while some of them aged $14. First communion classes Far Rockaway High School, and Long undoubtedly are, as are in fact some public numbered 7, maybe 10. Children ready Island University. and other private schools, it would be a for the sacrament of confirmation grave mistake to ignore the reality that Since 1976, Sam has served as presi­ were sent to a neighboring parish be­ dent of Dayton Towers Corp. Along these schools are largely inspired by the cause St. Gertrude's did not have desire of parents to provide an intensely with his volunteer work for St. Ger­ academic and genuinely religious education­ enough children to have their own trude's, he also serves as the chairman al atmosphere for their children. ceremony. of the Advisory Council, Mayor's Our statement has necessarily concentrat­ Over the years, St. Gertrude's has Office for the Handicapped, president ed on the religious rights of families in been blessed with many distinguished of AIDE Clients must live in San Mateo County, one of several hundred such typewriters, complete filing system. 3 secre­ County. If client ex­ organizations in the United States Senior Citizens Unit has own secretary /re­ ceeds financial limit, case is not taken, al­ which receives funds from the Corpo­ ceptionist, and the four Directing Attorneys though advice may be given, and sometimes ration. share another. a brief is prepared. A description of the Society's oper­ Law library has the basics: Legislative As all clients are low income, few have ations, prepared by my staff assistant, Digest, Calif. Reporter, Calif. codes, etc. cars-most take SamTrans buses. Few have David Beaver, is appended for the courthouse is across the street, with more any significant assets, most are receiving RECORD. complete collection. some government aid. (If they aren't, they Re: San Mateo County Legal Aid Society. My general impression is that they are encouraged to apply for any applicable haven't wasted any money on frills, but program.) The clients I saw in my 2 days I spent a day and a half at the San Mateo when justified were more female than male, more minority County Legal Aid offices. (age limit 60 years), Administrative Law is more routine. All work is reviewed by a Criminal matters; <2> those that would qual­ Unit bankruptcy tenant>. Interpreters are obtained from local groups, ; There don't seem to be many heirarchical when necessary. and <5 >wills. conflicts. Directing Attorneys work with cli­ Turnover is high in lower positions, but Most non-qualifying cases are sent to Law­ ents just as the paralegals do, and inter-unit most full attorneys stay for a long time­ yer's Referral Service ($12/half hour). Re­ referrals cause no problem. They're working creates problem of few openings for ad­ ceptionist screens all case intake and refers on the problem of poor inter-unit cummuni­ vancement. elsewhere if at all possible, to reduce work­ cation. All staffers are relatively young: 4 senior load. 1978 estimate was 5000 cases handled, At peak in 1960's, the Society had 5 attorneys are perhaps 35-40, the rest early 7000 referred. branch offices; inflatibn and other Legal aid at that time was on a voluntary Contra Costa County Justice System basis. The Bar Association operated legal have also joined together to strongly CONTRA COSTA COUNTY clinics at both the Walnut Creek .Court and support the reauthorization and re­ BAR ASSOCIATION, the Concord Court on alternate W ednes­ funding of the Legal Services Corpora­ Walnut Creek, Calif. days. These clinics were supposed to be tion. The fact that there is agreement RESOLUTION staffed by volunteer private lawyers. among such a wide range of justice The Board of Directors of the Contra I found that a handful of lawyers had to Costa County Bar Association upon consid­ do most of the work. I heard every conceiva­ system agencies-the board of supervi­ eration of the proposed action of the ble excuse from the other lawyers in the As­ sors, bar associations, judges, law Reagan administration to discontinue fund­ sociation why they could not be at the clinic schools, county attorneys, and law en­ ing of the Legal Services Corporation has and why they could not take on legal aid forcement-demonstrates the imp or- unanimously resolved to encourage Presi- cases. June 18, 1981 EXTENSIONS OF REMARKS 13059 After a year of that, I became convinced the name "denationalization of money." 1 planning authority. The attempt by some that voluntary legal aid does not work. I was Free banking was the leading topic of mone­ economists to design a simple set of rules a proponent of, and, in fact, appeared tary controversy in Britain, the United for optimal currency supply rests on enor­ before the Board of Supervisors, advocating States, and several European nations in the mous intellectual conceit. Only competition, the establishment of a funded legal aid serv­ decades before national central banks, to quote a nineteeth-century writer, can ice in Contra Costa County. The Legal Serv­ through political means, consolidated their provide "the nice adjustment of the curren­ ices Foundation was created. positions as monopoly suppliers of base cy to the wants of the people". 7 It will be unfortunate if we go back to the money. 2 The time is ripe for raising the Many thoughful persons considering an way it was in 1966 and use volunteer legal question of competitive currencies. end to the Federal Reserve fiat money aid. It didn't work then and it will not work There are at least three streams of system, either because of a principled ad­ in the future. thought on monetary policy. 3 There are (1) herence to a free society or because of an The disadvantaged need access to the jus­ those who, like Milton Friedman, 4 would empirical recognition of the disruptive char­ tice system. Legal Aid is their vehicle-often bind the monetary authority by means of acter of the system, have embraced the gold their only voice. an artificially designed set of rules of con­ standard as a superior and viable alterna­ I recognize the tremendous problems you duct, usually called by its proponents a tive. They sometimes make the claim that have and the pressures of the Congress, but "monetary constitution"; and (2) those who, the gold standard alone represents a "free I hope you will do what you can to continue like Keynesian writers, would allow the market" monetary system or is alone con­ the funding to the Legal Services Founda­ monetary authority practically unlimited sistent with a free society. It is therefore tion. discretionary power. There are also <3> supposed to be incumbent on supporters of Very truly yours, those who, like Hayek, would do away with an unhampered market economy to call for WILLIAM A. O'MALLEY, the monetary authority altogether. They redefinition of the dollar as so many grams District Attorney.e would allow a market order to prevail in the of gold. monetary arena. Ludwig von Mises also be­ GOLD, DOLLARS, AND PRIVATE longed to this third tradition, the free bank­ GOLD AND THE MARKET ing tradition. 5 CURRENCIES Certainly an attractive feature of a gold­ ADVANTAGES OF COMPETITION based monetary system is that it does not HON. RON PAUL The case for a competitive currency presuppose a monetary authority. The his­ system is ·akin to the case for competitive torical evidence indicates that the system OF TEXAS market provision of oil or any other com­ works quite well without one. Competitive IN THE HOUSE OF REPRESENTATIVES modity. It rests on the fact that a market issue of bank currency on a gold-convertibil­ Thursday, June 18, 1981 system has two advantages over government ity basis generates a stable and self-regulat­ monopoly: a price system for coordination ing monetary order.8 The question of e Mr. PAUL. Mr. Speaker, I would and a profitability test for discipline. By whether gold can justly claim today to be like to call the attention of my col­ means of an unhampered market price the free-market money, so that anyone call­ leagues to an essay that appeared in system a society can best turn the knowl­ ing for denationalization of money must be the June issue of Policy Report, a edge and initiative of millions of individuals committed to gold, is worth examining. Dis­ newsletter published by the Cato In­ to the satisfaction of consumer wants. A cussion of such a question must by the stitute in California. "Gold, Dollars, free market in privately issued currency nature of the case be conducted at a some­ would mean provision of the most desirable what speculative level. and Private Currencies" is a concise sorts of money from the consumer's per­ and incisive argument for the dena­ The free-market argument for gold runs spective. There is every reason to believe something like this: <1 > Gold spontaneously tionalization of money. Mr. White, the that market currency would be the most emerged as money in the Western world and author of the article, points out that convenient for transactions purposes, the persisted as money in the United States "Sound monetary policy is impossible most trustworthy, and-what makes it espe­ until its death at the hands of Franklin in the same way that sound economic cially attractive-the most stable and likely Delano Roosevelt in 1933; <2> the factors im­ planning is impossible." In fact, mone­ to increase in purchasing power. An irre­ portant for the emergence and persistence tary policy is a form of economic plan­ sponsible issuer-one who inflated as much of gold are timeless; (3) therefore even ning that is in the long run incompati­ as the Fed has of late-would lose customers today gold would spontaneously emerge as to his rivals. The Federal Reserve Board money in a competitive market setting. Any ble with a free society. We must seek faces no such discipline. the separation of the government shortcomings in this argument must lie in Delegating control over the supply of cur­ claims (1) and (2). The trouble with (1) is from financial institutions, just as our rency to a monetary authority subjects us that the historical record is not entirely lop­ fathers sought to separate the govern­ to the combined shortcomings of monopoly sided on gold's behalf. The problem with <2> ment from ecclesiastical institutions. provision and central planning for the cur­ is that 48 years of being off the gold stand­ Only if that is done can our free socie­ rency market: low quality product and un­ ard cannot be shrugged off. The past status ty hope to survive. The article follows: predictable supply conditions from which of gold is not sufficient to guarantee its re­ there is no escape. Closing down the Federal establishment as money. GOLD, DOLLARS, AND PRIVATE CURRENCIES Reserve System would yield benefits similar The historical record is complicated by (By Lawrence H. White> to those to be gained by closing down the the fact that silver emerged and persisted as The Federal Reserve System has quite Department of Energy. Just as the incidental fact that governmental mints mo­ criticism has begun to take the form of a best government energy policy is no energy nopolized the supply of coinage services ground-level reconsideration of the theory policy, the best government monetary does not, however, further weaken the of central banking. It is about time: A re­ policy is no monetary policy. market-chosen money status of the precious thinking of the fundamental doctrines of Economists searching through the years metals. The mints merely coined what the monetary policy is long over due. for a "sound monetary policy" have been market process had already converged upon The most basic of the issues at hand is not pursuing a chimera. "Sound monetary policy" is impossible in the same way that as media of exchange.> whether the monetary authority should be The case for silver is strong enough that compelled to follow some set of "rules" or "sound central planning" is impossible. Hayek argues insightfully to the effect that those who would have market determina­ should have discretionary control over the tion of the monetary standard must be com­ nation's money. It is not "this constitution" central banking is a form of central plan­ ning: "A single monopolistic government mitted at least to allowing private issuers of ; it is not gold agency can neither possess the information which should govern the supply of money tronage. They cannot preemptively en­ versus paper money. The fundamental issue throne gold. Once a competition among is national monetary authority versus un­ nor would it, U it knew what it ought to do 'standards begins, however, there is no hampered competitive market provision of in the general interest, usually be in a posi­ tion to act in that manner." 6 The proper reason to limit the field to two candidates. currency. The idea of currency competition The currency systems that private issuers used to be called "free banking." It has re­ volume and distribution of money for an might offer are many: (a) gold and gold-con­ cently been revived by F. A. Hayek, in the entire nation can never be known to a single vertible currency; silver and silver-con­ Wall Street Journal and elsewhere, under Footnotes at end of article. vertible currency; "symmetalic" curren- 13060 EXTENSIONS OF REMARKS June 18, 1981 cy, wherein the currency unit is convertible that inflation must reach mindboggling pro­ have to attract customers on the basis of su­ into so many grams of gold plus so many portions before alternative currencies can perior purchasing-power reliability. His grams of silver; (d) currency convertible into gain a foothold. It should be noted that the notes would fluctuate in value, however, some nonmetallic commodity or basket of previously existing legal barrier to contract­ with the relative price of the commodity to commodities, with token coinage; (3) con­ ing in gold or other alternative currencies in which they were claims. Until that commod­ vertible currency whose purchasing power is the United States, the "Gold Clause" Joint ity became the monetary standard, it would stabilized by indexation of the conversion Congressional Resolution of 5 June 1933, not enjoy the stable demand facing a mone­ rate, as envisioned by Irving Fisher;9 (f) in­ was removed by the Helms Amendment of tary commodity. Nor could he vary supply convertible currencies, perhaps purchasing­ October 1977. 13 at will so as to offset the impact of demand power-stabilized in the manner envisioned THE TRANSITION PROBLEM changes on price. The notes would therefore by F. A. Hayek; 10 (g) currency convertible A thorny question thus arises ·for those probably not be reliable for purchasing­ into foreign government fiat currencies; and who would denationalize the American cur­ power stability. (h-z) as many others as monetary entrepre­ rency industry: how to make the transition Bank-issued private currencies would float neurs might convince the public to hold. away from the dollar standard. The dollar against one another unless convertibility Advocates of gold as free-market money must initially be linked to any new stand­ into some common medium, or purchasing­ must presume that gold would emerge from ard, so that an unbiased competition among power stabilization in terms of some a competition among standards as the single alternative new standards hardly seems pos­ common commodity basket, were adopted. A predominant standard-why else advocate sible. The route to a predetermined new pegged exchange rate system among rival is­ gold as such? Here we confront their argu­ commodity standard is straightforward: suers would clearly be in no issuer's self-in­ ment's second shortcoming. The handicap Have the Treasury lay in a stock of the com­ terest under inconvertibility. A bank that gold faces in the competition is that modity, establish convertibility of dollars pledged to trade its rival's inconvertible today, after 48 years of not being money, it into the commodity, withdraw Federal Re­ notes at par could be forced to accumulate is more or less just another metal. The serve notes and token Treasury coins from them ad infinitum by a more expansive "more" is what remains of its old reputation circulation via conversion, and open the rival, and in any event would have to hold ("mystique" to those who don't understand market to private issuers of coin and con­ costly reserves. it) as sound money. The "less" is its new vertible banknotes. The route to a system of A joint-float arrangement might nonethe­ reputation as a commodity whose purchas­ competing private inconvertible currencies less emerge via an invisible hand or market ing power is subject to violent and erratic is less clear. One way might be to do to the process of the following sort. Each issuing fluctuation. Federal Reserve note what Roosevelt did to bank would most likely find that it did It is true that gold still has the commodi­ gold: Have banks issue their own dollar-con­ better business by accepting the notes of ty usefulness and particular physical prop­ vertible hand-to-hand currency (these other issuers at market value ; Vera C. Smith, The Rationale of in working with the administration to what extent movements in the economy are Central Banking was site strategy. The thrust of public policy or rising real incomes>. on the defensive. In recent years, however, should be shifted toward giving higher pri­ We see this clearly by comparing the pro­ the relationship between the money stock ority to those doing the earning and produc­ jections for future years by President view with Hyman Bookbinder, the 31- President Carter's January Budget Message INCORRECT IMAGE year veteran of the Washington scene (adjusted for the usual initial underesti­ Clearly the most controversial part of the and now Washington representative of mates) were to be realized for fiscal 1982, President's tax t>rogram is the proposal per­ the American Jewish Committee. As a the rise in total public spending at all levels taining to individual income taxes. The ad­ of government would have been equal to ministration has been talking to conserva­ committed advocate of Federal pro­ half or more of the projected increase in the tive House Democrats about the possibility grams to promote social justice and an total national income. of fashioning a three-year cut with figures insightful analyst of the current polit­ The tandem strategy that says we must different than its original proposal of a 10 ical climate, Bookbinder offers some first hold down spending until a budget sur­ percent reduction in three successive years. helpful comments about the challeng­ plus is achieved before considering tax re­ Whatever three-year package results from es of the new right and the task before duction is in a sense unexceptionable. We this process, it is here that the image those of us who value basic social re­ would thereby have won the right to a lower emerges of revenues going down. forms. tax burden. For the sake of argument, we will work It also has a major flaw. It does not work. with the administration's original 10-10-10 Hyman Bookbinder's comments Experience shows that this strategy leads proposal and address the opposition's as­ about ways to combat the threat of not to a budget in the black, but to a budget sumption that revenues will go down a like the moral majority and about the con­ with outlays and revenues both higher than amount, or 30 percent. This is not correct. tinued viability of black-Jewish rela­ would otherwise occur. It is a strategy that, The administration projected revenues from tions will be of interest to all Mem­ particularly in recent years, has produced a individual income taxes at $311 billion in bers. public sector absorbing a large proportion of fiscal 1983, 27 percent above the $244 billion I take this opportunity to congratu­ increases in the national income. It is the realized in fiscal 1980. ineluctable end result because it is a strate­ What the President's proposal here does is late the contribution of the American gy which in essence says that government little more than to neutralize the tendency Jewish Committee under the direction has first claim on earnings, and those earn­ for a progesssive tax rate structure over of Hyman Bookbinder for its efforts to ing these incomes must make do with the time to increase the proportion of the na­ interject sound reasoning into this Na­ remainder. tional income going for taxes as the nation- tion's public policy. June 18, 1981 EXTENSIONS OF REMARKS 13063 The article follows: what it is that's considered not a good institutions. The word that describes that in Here it is, April, and the new Administra­ thing. It could be that what the critics are common parlance is "lobbyist." I'm not a tion is off and running. What's the mood in effect doing, without realizing it, is registered lobbyist, but that is in effect among the defenders of the old-time liberal saying that the trouble with all these pro­ what I am. I'm an advocate, an explainer of religion, which, I presume, includes you? grams is not that they were not good, but policies, and, to the extent that we can par­ Yes, I still proudly wear the label "liber­ that they were not good enough. We are ticipate in the shaping of policy on behalf al," even though it becomes less and less close to having eliminated the kind of pov­ of the AJC, that's what I do. clear just what the label stands for. I think erty we used to find 16 years ago or so when Crisis periods aside, what proportion of what we're finding, especially over the I was involved in the Poverty Program. Of your effort is invested in Israel-oriented lob­ course of the last few weeks, is that the lib­ course, poverty is a relative thing. But we bying or advocacy? erals really lost the election. In some ways, had a definition back then, in 1964, and if It does fluctuate, as your question implies. it's rather stark: budget cut proposals, con­ you take today the financial income and I would say, with satisfaction on the one fusion over human rights and things like services in kind that the poor receive. I hand and with much dismay on the other, that. But it's still too early; no absolute as­ think we've done a good thing, and not a that activity on Israel's behalf clearly takes sessment is possible or is being offered at bad thing. We've reduced the number of up the bulk of my time. I'm pleased because this point. And that's in part because the people who are really, in fact, poor-home­ it's gratifying to play ·a role in shaping liberal leaders, in Congress and elsewhere, less and hungry-to very, very few. I think American policy towards Israel and in have not yet provided anything that resem­ America ought to be proud of that record. trying to improve the America-Israel rela­ bles a coherent alternative. The battle is Let's turn for a minute to Hyman Book­ tionship. I want to be involved in that; it is being waged on specific things, but no one is binder. How long have you been in Wash­ obviously our top priority, by far. On the saying "This approach is better than what ington? other hand, it's disturbing that in the thir­ we now see coming from the Administra­ Thirty-one years. I came at the beginning teen years I've been in this work, while tion." of the Korean War for what I thought there have been ups and downs in that rela­ Doesn't that suggest that liberals have would be a one year stint. I was a labor advi­ tionship and in Israel's situation, Israel con­ been without a comprehensive program for sor to the Korean War Program. I was a leg­ tinues to be a crisis issue. Some days are some time? This disarray is not merely po­ islative representative for the CIO and then quieter than others, but maintaining the litical; it's ideological, too. The election the AFL-CIO-that was after I left govern­ proper attitude towards Israel and strength­ merely revealed a condition that existed ment service in 1952, and then I went into ening the bonds between our two countries before the election, didn't it? the Kennedy administration in early 1961, is far and away the most important and the I wouldn't put it that way. With all the where I served as a Special Assistant to the most time-consuming task we have. confusion and ambiguity that surrounds the Secretary of Commerce. Then, in 1962, There are, as you intimated a while back, so-called liberal program, I believe that even when Eleanor Roosevelt died, at the White a number of representatives of Jewish orga­ during these difficult, uncertain years, House request, I took a leave of absence nizations who work in Washington. We hear there was a basic liberal credo that has held from government and spent the year orga­ a great deal about duplication and overlap, up. I know that's unfashionable to say these nizing the Eleanor Roosevelt Memorial what kind of a relationship do you have days, but the idea that our complicated eco­ Foundation. At the end of about a year of with your colleagues who represent other nomic and social system requires a signifi­ that, the War on Poverty started, and I was Jewish agencies and organizations? cant amount of federal intervention and in­ asked to come back to government service in Mostly we work independently. We're to­ volvement still holds true, despite the disap­ Washington where for three years I served gether in that we try to meet often enough pointments we've had over certain aspects as assistant director to OEO. At the same to exchange perceptions and information, of that intervention. The liberal believes time, for two of these years, I am a Special and there I feel proud of the role I played in that the major social goals-a greater meas­ Assistant to Vice President Hubert Hum­ prompting the regular meeting of all the ure of justice and equity, and so on-require phrey. Washington reps back when I first started a fairly active federal involvement. The Then, in '67, interestingly enough, a few with AJC. It had not happened before. So other side-call it conservative, call it what months after the Six Day War, I was fi­ we do have coordination of sorts, and we all you want-believes that the last 15 or 20 nally persuaded to leave government and to work with AIPAC